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Tuesday 8 October 2013
Man Enters Guilty Plea in Large Obion County Marijuana Grow OperationRead the Press Release
Memphis, TN – Ignacio Lazcano-Acosta, 52, pleaded guilty yesterday to one count of
manufacturing and attempting to manufacture marijuana in violation of 21 U.S.C. § 846,
announced United States Attorney Edward L. Stanton III.
According to information presented in court, on October 11, 2011 in Obion County, Tennessee,
officers with the Obion County Sheriff’s Department discovered a large outdoor marijuana grow
containing several acres of marijuana plants that had the appearance of being grown, harvested,
and processed for distribution. DEA agents were able to identify Ignacio Lazcano-Acosta as one
of the persons involved with the marijuana grow operation. Mr. Lazcano-Acosta changed his
plea in a court hearing before Judge J. Daniel Breen yesterday, October 7, 2013.
The potential penalty for this charge is no more than 20 years in federal prison. Lazcano-Acosta
is scheduled to be sentenced by Judge Breen in Jackson on January 10, 2014 at 10:00 a.m. There
is no parole in the federal prison system.
This crime was investigated by the 27th Judicial District Drug Task Force, the Drug Enforcement
Administration, the Tennessee Bureau of Investigation, the Tennessee Highway Patrol, the
Union City Police Department and the Obion County Sheriff’s Office. The case is being
prosecuted by Assistant United States Attorney Victor L. Ivy on behalf of the government.Judge Sentences Inmate with Cell Phone to 2 More Months in PrisonRead the Press Release
ERIE, Pa – An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania has been sentenced in federal court to 2 months in jail on his conviction of possession of contraband in prison, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence on Martin Killings, 33. The sentence was imposed to run consecutively to the sentence Killings is currently serving.
According to information presented to the court, on or about December 6 2012, Killings was in possession of contraband, namely a cell phone.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Officers of the McKean Federal Correctional Institution for the investigation leading to the successful prosecution of Killings.
Inmate Charged with Escape from McKean Federal PrisonRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of escape after conviction, United States Attorney David J. Hickton announced today.
The one-count indictment named Locksley Brian Millwood, 36, as the sole defendant.
According to the indictment presented to the court, on or about August 21, 2013, Millwood escaped from the McKean Federal Prison Camp.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
Officers of the McKean Federal Correctional Institution and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Illegal Alien Charged with Immigration Law ViolationRead the Press Release
ERIE, Pa. - A former resident of Guanajuato, Mexico has been indicted by a federal grand jury in Erie on a charge of violating federal immigration laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Eduardo Hurtado-Valdez, 26, as the sole defendant. According to the indictment presented to the court, on or about September 24, 2013,
Hurtado-Valdez was found to be unlawfully present within the United States. Hurtado-Valdez had been previously ordered deported and removed from the United States on July 9, 2008 and was removed from the United States on November 24, 2011. The defendant subsequently reentered the United States, and was found to be present in this country without the permission of the Secretary of the Department of Homeland Security.
The law provides for a maximum total sentence of 2 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christine A. Sanner is prosecuting this case on behalf of the government.
The Pennsylvania State Police and the Bureau of Customs and Border Protection conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Erie Man Gets 10-Year Prison Sentence for Illegally Possessing A SilencerRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 120 months in jail on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr. imposed the sentence on James Lamont Johnson, 47.
According to information established at trial, on August 15, 2012, in Vernon Township, Crawford County, Pennsylvania, Johnson unlawfully possessed a firearm silencer for a .25 caliber handgun. Johnson ordered the silencer from another individual, and ordered eleven additional firearm silencers that he wanted to be produced immediately. The evidence established that Johnson needed the .25 caliber silencer by the upcoming weekend because he needed to "take care of somebody" in Erie. After Johnson obtained the firearm silencer and entered his red 2009 Lexus sedan, he was apprehended by police officers. During the execution of a search warrant on Johnson's Lexus vehicle, the silencer was found hidden in an empty space behind the dashboard air vents. The vehicle had been altered to allow Johnson ready access to the hidden compartment in order to try to hide the silencer after he entered the vehicle. Johnson's possession of the firearm silencer was unlawful because it had not been registered to him in the National Firearms Registration and Transfer Record as required under federal law.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Vernon Township Police Department, the Meadville City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Johnson.
Federal Inmate Indicted on Contraband ChargeRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of possession of contraband in prison, United States Attorney David J. Hickton announced today.
The one-count indictment named Pedro Kline, 25, as the sole defendant.
According to the indictment presented to the court, from on or about May 11, 2013 to on or about May 13, 2013, Kline was in possession of contraband, namely, marijuana.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
Officers of the McKean Federal Correctional Institution conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Inmate Charged with Possessing Drugs in PrisonRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of possession of contraband in prison, United States Attorney David J. Hickton announced today.
The two-count indictment named Jarrid Brewer, 24, as the sole defendant.
According to the indictment presented to the court, in and around April 2013, to in and around May 2013, Brewer was in possession of contraband, namely, marijuana and oxycodone hydrochloride.
The law provides for a maximum total sentence of twenty-five years in prison, a fine of $500,000, 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 Christian A. Trabold is prosecuting this case on behalf of the government.
Officers of the McKean Federal Correctional Institution conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Deported Alien Charged with Illegally Re-entering United StatesRead the Press Release
ERIE, Pa. - A former resident of Guanajuato, Mexico has been indicted by a federal grand jury in Erie on a charge of violating federal immigration laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Valente Hernandez-Marquez, 22, as the sole defendant.
According to the indictment presented to the court, on or about September 24, 2013, Hernandez-Marquez was found to be unlawfully present within the United States. Hernandez-Marquez had been previously deported and removed from the United States on February 3, 2011. The defendant subsequently reentered the United States, and was found to be present in this country without the permission of the Secretary of the Department of Homeland Security.
The law provides for a maximum total sentence of 2 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christine A. Sanner is prosecuting this case on behalf of the government.
The Pennsylvania State Police and the Bureau of Customs and Border Protection conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Monday 7 October 2013
Schuylkill County Woman Conspired to File False Income Tax Returns Requesting $210K in RefundsRead the Press Release
JOHNSTOWN, Pa. - A resident of Mahanoy City, Pa., pleaded guilty in federal court to a charge of conspiracy to defraud the government, United States Attorney David J. Hickton announced today.
Kimberly Lynn Snyder, 37, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from April 2008 to October 2010 Snyder conspired to file 72 false and fictitious income tax returns claiming tax refunds totaling $210,581.
Judge Gibson scheduled sentencing for Feb. 25, 2014, at 10 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Snyder on bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation conducted the investigation that led to the prosecution of Snyder.
Memphis Police Officer Pleads Guilty to Sex TraffickingRead the Press Release
Memphis, TN – Sean McWhirter, 31, of Memphis, Tennessee pleaded guilty today to one count
of transportation of individuals in interstate commerce for the purpose of prostitution, in
violation of 18 U.S.C. § 2421, announced United States Attorney Edward L. Stanton III.
McWhirter is a five-year veteran of the Memphis Police Department who was serving as a
patrolman at the time of his arrest.
On September 13, 2012, while on duty and in his patrol car, McWhirter agreed to transport three
women to a location in Tunica, Mississippi, for the purpose of prostitution. Subsequently, on
September 16, 2012, while off duty, McWhirter delivered two women from Memphis,
Tennessee, to a hotel in Tunica. Upon entering the room with the women, McWhirter was
arrested by Special Agents and Task Force Officers of the FBI. McWhirter changed his plea in a
court hearing before Judge S. Thomas Anderson today, October 7, 2013.
The penalty for this charge is no more than 10 years in federal prison and a fine of no more than
$250,000. McWhirter is scheduled to be sentenced by Judge Anderson on January 7, 2014 at
1:30 p.m. There is no parole in the federal prison system.
This crime was investigated by the Tarnished Badge Task Force, which is comprised of
investigators from the Federal Bureau of Investigation, Memphis Police Department, and Shelby
County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Brian
K. Coleman on behalf of the government.Jury Convicts Former Hialeah Police Officer and Wife of Dealing in Firearms Without A LicenseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Scott J. Israel, Sheriff, Broward County Sheriff’s Office (BSO), and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), announce that Rafael Oscar Valdes and Tammy Lynn Valdes, of Miami, Florida, were found guilty by a federal jury of all counts charged in connection with the unlawful sale of hundreds of firearms without a federal firearms license.
After a two week trial and over 300 items of admitted evidence, the jury convicted Rafael Valdes with dealing in firearms without a license (18 U.S.C. § 922(a)(1)(A)), making a false statement to a federal firearms dealer (18 U.S.C. § 922(a)(6)), interstate transportation of stolen property (18 U.S.C. § 2314), and filing false tax returns for years 2008 – 2011 (26 U.S.C. § 7206(1)). The jury also convicted Tammy Valdes with dealing in firearms without a license and filing false tax returns for years 2008 – 2011. At sentencing, Rafael Valdes faces a combined maximum statutory term of imprisonment of 37 years, as well as paying restitution to the City of Hialeah and possible fines. At sentencing, Tammy Valdes faces a combined maximum statutory term of imprisonment of 18 years and possible fines. Sentencing is scheduled for December 12, 2013, before U.S. District Judge Donald M. Middlebrooks.
According to the court record and evidence presented at trial, Rafael Valdes was employed as a police officer with the City of Hialeah, Florida since 2004. Tammy Valdes was also once employed as a police officer with the City of West Miami, Florida, from 2004 until 2008 and the Town of Golden Beach, Florida, from 2008 through 2009. Neither defendant ever possessed a federal firearms license.
The Valdeses were initially indicted on December 13, 2012, for dealing in firearms without a license. Starting as early as July 2005, and continuing through June 2012, the defendants sold hundreds of firearms. In November 2008, the defendants began buying and selling firearms under the fictitious name of Custom Weapons Systems. The defendants advertised and sold over 100 firearms via the Internet to persons across the nation. The defendants also attended over 100 gun shows in the Southern and Middle Districts of Florida, during which they purchased over 400 firearms and sold over 500 firearms. At times, their purchase and subsequent sale of firearms took place on the same day. Additionally, the defendants sold nine firearms to undercover agents, solicited the purchase of firearms from undercover agents, and offered to acquire firearms for undercover agents on a repetitive basis.
As part of the initial indictment, Rafael Valdes was charged with making a false statement to a licensed firearms dealer in December 2008 when he purchased three AR-15 serialized lower receivers. Evidence admitted during trial proved that Rafael Valdes purchased those receivers for the sole purpose of building and selling completed rifles to three other officers after taking deposits. Rafael Valdes then falsely stated on an ATF Form 4473 that all three receivers were his, when in fact he was acquiring those receivers for other persons.
On July 31, 2013, a superseding indictment added tax charges against both defendants for filing false tax returns from 2008 – 2011, in that they failed to report their total income which included money derived from firearm sales. During trial, evidence was presented that the Valdeses failed to report over $350,000.00 in gross receipts during 2008 - 2011.
The superseding indictment also charged Rafael Valdes with transporting stolen firearm parts from the Hialeah Police Department where he was employed in the training section. During trial, the evidence showed that Rafael Valdes took apart firearms that were in evidence at the Hialeah Police Department and deemed to be destroyed. Rafael Valdes then advertised those parts for sale on the internet and later transported those parts to buyers located across the United States, including; New York, California, Utah, and Missouri. Rafael Valdes then deposited the proceeds into his personal bank account. In addition to selling parts of firearms that were once in evidence, Rafael Valdes also sold machine gun parts taken from six different Heckler and Koch, MP-5 machine guns which had been utilized by the Hialeah Police Department SWAT team.
Mr. Ferrer commended the investigative and cooperative efforts of ATF, IRS-CI, BSO, PBSO, Miami-Dade Police Department, Miami Beach Police Department, City of Miami Police Department, Virginia Gardens Police Department, Hialeah Police Department, FDLE, FBI and HSI. The case was prosecuted by Assistant U.S. Attorneys Adam McMichael and John McMillan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Idaho Resident Sentenced for Sexually Exploiting Two ChildrenRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced that Michael Brian Clair, 33, formerly of Hazelton, Idaho, and Parker, Arizona, was sentenced today in United States District Court to 30 years in prison and 20 years of supervised release after pleading guilty to sexual exploitation of children by production of sexually explicit images of minors. U.S. District Judge Edward J. Lodge also ordered Clair to forfeit personal property used in the offense.
According to his plea agreement, Clair came to the attention of law enforcement on October 28, 2012, when he responded to an advertisement posted on Craigslist by an undercover Homeland Security agent in New Orleans, Louisiana. While conversing via email with the undercover agent, Clair made several statements about having inappropriate sexual contact with a four-year-old female and discussed trading sexually explicit images. During the plea hearing on August 13, Clair admitted that between July 2012 and January 2013, he used two prepubescent minors to engage in sexually explicit conduct, for the purpose of producing visual depictions of that conduct, and transported those images from Arizona to Idaho in late December. He also admitted distributing child pornography to others via the internet, including to a sex offender in Queensland, Australia.
Clair was also involved in trafficking sexually explicit images of 45 other children. The child pornography seized from Clair’s computer was identified by the National Center for Missing and Exploited Children (NCMEC).
“Those who victimize children by producing and distributing images of children being sexually abused will be identified, investigated and prosecuted,” said Olson. “Today’s sentence sends the strong message that local, state and federal agencies will work together in an efficient and coordinated manner to bring these predators to justice.”
“Child pornography producers and consumers destroy innocent lives,” said Brad Bench, special agent in charge of HSI Seattle, who oversees Idaho investigations. “This case provides yet another cautionary reminder for child predators who mistakenly believe they can preserve their anonymity by sharing child pornography over the Internet. When it comes to protecting children, we can't take chances. We can't ignore the obvious and we will continue to seek out these perpetrators and bring them to justice.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) agents from Idaho, Louisiana, Washington, and Arizona investigated the case, with assistance from the Boise Police Department, Idaho State Police, the Jerome County Sheriff’s Office and the Idaho Department of Health and Welfare.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, visit www.usdoj.gov/psc. For more information about internet safety education, visit www.usdoj.gov/psc and click on the tab “resources.”
Former City of Miami Police Officer Convicted on Corruption ChargessRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Manuel Orosa, Chief, City of Miami Police Department, announce that Vital Frederick, 27, a former City of Miami Police Officer, was convicted after a five day trial before U.S. District Judge K. Michael Moore. The jury returned a guilty verdict on all seven counts in the indictment, including four counts of interference with commerce by extortion, one count of access device fraud, and two counts of aggravated identity theft. The defendant provided protection and security for an illegal check cashing scheme and exploited the Police databases to steal identities and sell the identifiers believing they were to be used to commit tax fraud.
FBI Public Corruption Task Force and the City of Miami Internal Affairs Section initiated an investigation on former Officer Frederick after receiving a report of Frederick’s suspicious activity while on duty. On four separate occasions, between August 2012 and September 2012, Frederick provided protection for a courier who he believed was cashing fraudulent government checks at the check cashing store. He did so, while in full uniform and while driving his marked City of Miami Police Department vehicle. Frederick, in an effort to further facilitate the criminal activity, escorted the courier away from the check cashing store to give the courier safe passage. In exchange for providing security of the courier, who was purportedly cashing fraudulent government checks at the check cashing store, Frederick took receipt of approximately $800 cash.
In October 2012, Frederick sold the personal identifiers of 52 individuals to a second cooperating source after accessing City of Miami Police Department databases. During the investigation, City of Miami Police Department Internal Affairs Unit covertly monitored Frederick’s Police issued laptop and found that he conducted searches of the victims whose identities he was selling.
Mr. Ferrer commended the investigative efforts of the FBI and the City of Miami Police Department. This case is being prosecuted by Assistant U.S. Attorneys Robin Waugh and Michael Davis.
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.
Foreign National Sentenced for Role in Drug Trafficking OrganizationRead the Press Release
Maria Elena Rico-Lopez, 33, a citizen of Mexico who most recently resided in St. Louis, MO, was sentenced on October 4, 2013, following her conviction for Conspiracy to Distribute and Possess With the Intent to Distribute Cocaine and Entry Into the United States Without Inspection, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Rico-Lopez had been charged on August 22, 2012, in an eleven count indictment charging a total of ten individuals with being members of a large drug trafficking organization. Rico-Lopez was sentenced to 30 months in prison, followed by two years of supervised release. Rico-Lopez was also ordered to pay a $110 special assessment and to forfeit $23,560.00 to the United States. The Court also entered a Judicial Order of Removal, which requires her to be deported following the service of his sentence.
According to the Stipulation of Facts which was filed with the Court at the time of the plea, the organization charged in the Indictment was responsible for importing cocaine from Mexico into the United States, where it was taken to Salt Lake City, Utah. From Salt Lake City, the cocaine was transported by members of the conspiracy to the St. Louis Metropolitan area where it was distributed by various members of the organization, including some who operated within the Southern District of Illinois. Proceeds for the sales of the cocaine were then transported back to the leaders of the conspiracy in Salt Lake City.
Of the nine individuals named in the indictment with Rico-Lopez, six have entered pleas of guilty; two have been arrested and are awaiting trial; one is a fugitive. Those not yet convicted are presumed innocent because an indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
Evidence in support of the indictment in this case was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), U.S. Marshal Service, the Granite City Police Department, Fairview Heights Police Department, the Collinsville Police Department, the St. Louis Metropolitan Police Department, the St. Louis County (Missouri) Police Department, the St. Charles County (Missouri) Sheriff's Department, and the Nebraska State Patrol. This case is assigned to Assistant United States Attorney Randy G. Massey for prosecution.
East St. Louis Man Sentenced to Fifteen Years in Prison for Possession of A Firearm by A Convicted FelonRead the Press Release
An East St. Louis, Illinois, man was sentenced in federal district court to a lengthy term in federal prison for Possession of a Firearm by a Felon on October 7, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Danyahle L. Mosley, 32, was sentenced to 180 months (15 years) in prison, to be followed by 5 years supervised release, a $100 special assessment, and a fine of $100. Parole has been abolished in the federal system. Mosley had plead guilty on April 15, 2013, to an Indictment charging him with Possession of a Firearm by a Felon. The charge relates to an incident that occurred on October 5, 2011, in East St. Louis, Illinois, when law enforcement officers conducted a parole compliance check of Mosley’s home and discovered a 20-gauge shotgun, a magazine for the gun, and two boxes of ammunition in Mosley’s home. Mosley admitted that those items were his. At the time, Mosley was on parole for Unlawful Possession of a Controlled Substance, for which he had been paroled on January 26, 2011.
United States Attorney Wigginton noted, “Mosley was sentenced under the Armed Career Criminal Act, which requires a minimum sentence of 15 years in prison if a defendant, charged with Possession of a Firearm by a Felon, has at least three prior convictions for violent felonies and/or serious drug felonies. A sentence like this should serve as a warning to those who would repeatedly violate the law – federal prison sentences are severe. You will face drastic consequences for your actions.” Documents filed with the court indicate that Mosley had been convicted in 2001 and 2004 for separate residential burglaries, and had been convicted in 2008 for Robbery; all three of these crimes constituted crimes of violence for purposes of the Armed Career Criminal Act.
The sentencing judge also ordered forfeiture of the firearm, magazine, and ammunition.
The case was investigated by members of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorney Stephen B. Clark.
Dover Developer Pleads Guilty to Bank ConspiracyRead the Press Release
Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Salvatore J. Leone, entered a guilty plea before the Honorable Gregory M. Sleet to a one count felony Information charging him with conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349.
According to the criminal Information and plea agreement, Leone was a project manager for and partner with Michael A. Zimmerman in several limited liability companies formed for the purpose of developing real estate in or around Dover, Delaware.
Between September 24, 2007 and February 27, 2009, Leone and others, including Zimmerman and an employee of Zimmerman’s real estate development company, BBC Enterprises, submitted or caused to be submitted false draw requests to Wilmington Trust Company. In particular, Leone admitted to the following acts during his plea hearing:
- On or about September 24, 2007, Leone agreed to create a bill for Zimmerman for $231,000.00 purportedly for work performed on the Compass Pointe project, with intent to submit the bill to WTC for payment. However, as defendant and Zimmerman knew, the payment was not for work actually performed on Compass Pointe, but was to be used by Leone to fund a capital call on at least one unrelated real estate project.
- On or about October 28, 2008, Leone and Zimmerman submitted to WTC a fraudulent construction draw request for $8,568.00. The conspirators represented that these loan proceeds would be used to fund a change order associated with the Salt Pond project. Instead, Leone and Zimmerman used the loan proceeds for construction costs associated with an unrelated project.
- On or about January 3, 2008, Leone and Zimmerman submitted to WTC a fraudulent construction draw request for approximately $170,000.00. Leone and Zimmerman represented that these loan proceeds would be used to fund construction costs associated with the Compass Pointe project, but $100,000.00 of these proceeds were instead converted into a check made payable to Zimmerman.
- On or about January 15, 2008, Leone and Zimmerman submitted to WTC a fraudulent construction draw request for $375,000.00. Leone and Zimmerman represented that these loan proceeds would be used to fund architectural and engineering costs associated with the Shoppes at Fieldstone project. Instead, Leone and Zimmerman each received a check for $120,000.00, while the project account received only $135,000.00.
- On or about February 27, 2009, Leone and Zimmerman misappropriated approximately $260,000.00 in escalated lease payments received from a lessee for the Shoppes at Fieldstone project. In the loan agreement for the Shoppes at Fieldstone project, it had been represented that the escalated lease payments would be reinvested back into that project. Rather than comply with the terms of the loan agreement, Leone and Zimmerman used the loan proceeds for another purpose, namely the payment of a checks to Leone and Zimmerman, each in the amount of $130,000.00.Leone, age 50, is a resident of Dover, Delaware. He faces a maximum penalty of 30 years imprisonment, a $1,000,000.00 fine, and mandatory restitution.
Leone, age 50, is a resident of Dover, Delaware. He faces a maximum penalty of 30 years imprisonment, a $1,000,000.00 fine, and mandatory restitution.
United States Attorney Oberly said, “The charge against Mr. Leone and today’s guilty plea represent another step forward in this Office’s investigation into the demise of the Wilmington Trust Corporation. We, and our investigative partners, remain determined to identify and prosecute abuses like this one that compromise the integrity of Delaware financial institutions.”
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue
Service Criminal Investigation Division, the Special Inspector General for the Troubled Asset
Relief Program (SIGTARP), and the Office of Inspector General, Board of Governors of the Federal Reserve System, and is being prosecuted by Assistant United States Attorneys Robert F. Kravetz and Lesley F. Wolf.
Leone Plea Agreement.pdfLeone Felony Information.pdf
- On or about September 24, 2007, Leone agreed to create a bill for Zimmerman for $231,000.00 purportedly for work performed on the Compass Pointe project, with intent to submit the bill to WTC for payment. However, as defendant and Zimmerman knew, the payment was not for work actually performed on Compass Pointe, but was to be used by Leone to fund a capital call on at least one unrelated real estate project.
California Truck Driver Sentenced to 18 Months in Prison for Meat Theft ScamRead the Press Release
United States Attorney Deborah R. Gilg announced that Artak Medjbarian of Sherman Oaks, California, was sentenced to 18 months in prison by United States District Court Judge Laurie Smith Camp for his involvement in attempting to steal $163,000 worth of meat products from Nebraska Beef. In addition to his prison term, Medjbarian will also serve 3 years of supervised release.
Medjbarian, age 33, was charged in May of 2012 by a federal grand jury in a scheme with others to steal loads of meat cargo, by pretending to be the legitimate freight haulers to whom authority to transport the loads had been given. The Indictment specifically charged a conspiracy to commit wire fraud and to engage in the interstate transportation of stolen property.
The Indictment alleged that Medjbarian used the identity of a legitimate trucking company in Arizona to bid on hauling a load of meat from Nebraska Beef to California. Due to discrepancies with respect to the documentation forwarded by unknown co-conspirators on Medjbarian’s behalf, the freight brokers contacted the owners of the true Lopez Trucking, and determined that Lopez Trucking did not have trucks operating under their authority in the State of Nebraska on the day Medjbarian showed up at Nebraska Beef pretending to have the transport authority of Lopez Trucking. Omaha Police were contacted and Medjbarian was initially arrested on local charges which included possession of stolen property, due to the license plates on the tractor being plates to which the tractor was not registered.
Medjbarian had previously been detained by the United States Marshal pending sentencing. Medjbarian faced a maximum penalty of up to five years in prison on the conspiracy conviction.
In addition to the Omaha Police Department, the case was also investigated by the Nebraska State Patrol and by the Federal Bureau of Investigation.
CEO of Local Company Sentenced to 30 Months Imprisonment for Pocketing Employee Payroll Tax WithholdingsRead the Press Release
Charles Smith, age 54, of Bear, Delaware, was sentenced to thirty months imprisonment by the Honorable Gregory M. Sleet, Chief Judge of the United States District Court for the District of Delaware on Friday, October 4th, after pleading guilty to failing to account for and pay over his employees’ payroll taxes. Charles M. Oberly, III, United States Attorney for the District of Delaware, announced the sentence today. Smith pled guilty to ten counts of Failure to Truthfully Account For and Pay Over Payroll Taxes, in violation of Title 26, United States Code § 7202.
This case was investigated by Jacqueline Zebley of the IRS, and was prosecuted by Assistant United States Attorney Jennifer K. Welsh.
Smith was the Chief Executive Officer of eShowings, a company which provides online and telephone appointment services for real estate professionals. eShowings has offices in Newark, Delaware, North Carolina, and Kansas. As the founder and CEO of eShowings, Smith was responsible for ensuring that employees’ payroll tax withholdings were paid over to the government. Instead, Smith took money deducted from employees’ paychecks and spent it personal items for himself and his family. At the sentencing hearing, the Court noted that Smith had spent the money on vacations, gambling, a pontoon boat, and other personal expenses.
United States Attorney Charles M. Oberly stated of the prosecution, “My office is committed to protecting the hardworking wage earners who think they are meeting their tax obligations from unscrupulous employers who victimize them and fail to pay their share to the government.”
“Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the Internal Revenue Service,” said IRS Special Agent in Charge Akeia Conner. “The failure to pay over withheld taxes is a serious offense. Friday’s sentencing shows that IRS Criminal Investigation, the United States Attorney's Office and the District Court of Delaware are all in accord regarding the seriousness of this offense.”Attorney Sentenced in Plot to Conceal and Dispose of Assets in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Scott F. Saidel, 45, was sentenced to 36 months in prison to be followed by 2 years of supervised release by U.S. District Judge Robin S. Rosenbaum. In addition, Saidel was ordered to pay restitution in the amount of $515,000.
Saidel pled guilty to conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 371 on January 30, 2013. Saidel was charged, along with Kimberly Wendell Rothstein, 38, and Stacie Weisman, 49, in September 2012, in connection with certain crimes committed in furtherance of a plot to conceal and dispose of assets which were forfeitable in connection with a Ponzi scheme orchestrated by Scott W. Rothstein. At the same time, in September 2012, Eddy Marin, 50, and Patrick Daoud, 54, were also charged in a separate, but related, matter with obstruction of justice and perjury, in violation of Title 18, United States Code, Sections 1512(k) and 1621.
According to the documents filed with the court, former Ft. Lauderdale attorney Scott W. Rothstein, who was the Chief Executive Officer and Chairman of the law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA), used the funds obtained from the operation of a Ponzi scheme to purchase tens of millions of dollars of real estate, vehicles, vessels, business interests, luxury watches, jewelry and sports memorabilia for himself, his wife, Kimberly Rothstein, and others. As part of his plea agreement, Scott W. Rothstein agreed to forfeit to the government all assets acquired with funds derived through the aforesaid Ponzi scheme. On November 9, 2009, agents of the Internal Revenue Service, Criminal Investigations, went to the Rothstein residence, where Kimberly Rothstein assisted the agents in retrieving what was believed to be all of the available cash, jewelry and luxury watches which had previously been purchased by Scott W. Rothstein with proceeds derived from the Ponzi scheme. However, according to Court documents, before, during and after the aforesaid seizure by federal agents on November 9, 2009, Kimberly Rothstein, Stacie Weisman, and Scott F. Saidel knowingly took action to conceal certain items of jewelry, valued in excess of one million dollars, for the purpose of preventing the government from exercising its authority to take such property into its lawful custody and control. Thereafter, Kimberly Rothstein and Stacie Weisman sold and attempted to sell a portion of this jewelry to and through various persons, including Eddy Marin and Patrick Daoud.
The documents further allege that, in connection with civil proceedings instituted by the Trustee in bankruptcy for RRA, the defendants took steps to obstruct justice by concealing the true location of certain items of jewelry in order to prevent its availability for use in the bankruptcy proceedings. It is further alleged that Marin and Daoud committed perjury during depositions in connection with the bankruptcy proceedings, and that Kimberly Rothstein, Stacie Weisman and Scott F. Saidel sought to have Scott W. Rothstein testify falsely in connection with those proceedings.
Kimberly Rothstein and Stacie Weisman are scheduled to be sentenced on November 12, 2013. Trial in the matter of Eddy Marin and Patrick Daoud is set to commence on October 21, 2013.
Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence LaVecchio, Jeffrey Kaplan, Paul Schwartz and Evelyn Sheehan.
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.
Friday 4 October 2013
Vero Beach Resident Pleads Guilty to Importing Illegal Catch from the BahamasRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries, Office of Law Enforcement, Southeast Division, and Major Camille Soverel, Regional Commander, South A Region, Florida Fish & Wildlife Conservation Commission (FWC), announce that Toby Lamm, 46, of Vero Beach, entered a guilty plea in Fort Pierce before U.S. Magistrate Judge Frank J. Lynch to importing illegal catch in violation of the Lacey Act, Title 16, United States Code, Sections 3371(a)(2)(A) and 3373(d)(1)(A).
According to allegations in the information and statements made in court, on or about June 23, 2013, in St. Lucie County, Lamm attempted to import queen conch (Strombus gigus), spiny lobster (Panulirus argus), stone crab (Menippe mercenaria) claws and demersal (fin fish) namely: snapper (Lutjanus) and grouper (Serranidae), in violation of the possession limits for each of the species as set forth in the laws and regulations of the Commonwealth of the Bahamas, specifically, the Fisheries Resources (Jurisdiction & Conservation) Regulations, Part X, Sections 47(1)(a), (b) and 48(1)(f) and the laws and regulations of the State of Florida, specifically 68B-16.003(1), 68B-24.003(4), and 68B-13.005(2) contrary to the federal Lacey Act.
The information also seeks the forfeiture of the illegal catch: approximately, 338 queen conch, 11 spiny lobster tails, 31 stone crab claws, and 140 pounds of snapper and grouper fillets.
Sentencing is scheduled for December 16, 2013 before U.S. District Judge Jose E. Martinez. Lamm faces a possible sentence of up to one year in prison, the forfeiture of the illegal catch, and a fine of up to $10,000.
Mr. Ferrer commended the investigative efforts the NOAA, Office of Law Enforcement, FWC, and Customs and Border Protection. The case is being prosecuted by Assistant U.S. Attorneys Norman O. Hemming, III and Antonia Barnes.
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.
Tuscaloosa County Man Indicted for Financial FraudRead the Press Release
BIRMINGHAM -- A federal grand jury has indicted a Tuscaloosa County man on multiple fraud and false statement charges connected to schemes to defraud financial institutions and the United States Small Business Administration of approximately $3 million, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
A 51 count indictment filed in U.S. District Court charges DANNY RAY BUTLER, 57, of Fosters, Alabama, with wire fraud and multiple counts of false statements and bank fraud arising from three fraud schemes.
Butler owned and operated Butler Wholesale, Inc., a used car lot in Tuscaloosa, and Fosters Groceries, LLC, a company formed to build and operate a grocery store in Fosters. According to the Indictment, Butler defrauded the United States Small Business Administration (SBA) of $1,760,000 in connection with a loan to build Fosters Groceries, he engaged in a check kite scheme that caused Alabama One Credit Union to lose $1,275,000, and he made misrepresentations to Butler Wholesale’s floor plan company and caused a loss of $50,000.
The SBA is an agency of the federal government created to aid, counsel, assist, and protect the interests of small businesses. Through partnerships with public and private organizations, SBA helps Americans start, build, and grow small businesses. One of the ways in which SBA helps small businesses is through the SBA 504 Loan Program.In early 2010, Butler sought to borrow approximately $5 million from West Alabama Bank and Trust to build a grocery store in Fosters, Alabama. Subsequently, when West Alabama Bank and Trust refused to finance the entire project, Butler applied for and obtained an SBA 504 loan. West Alabama Bank and Trust ultimately agreed to loan Butler 50% of the total amount of the project and SBA agreed to finance 35% of the total amount. Butler was required to provide the remaining 15% as his cash injection into the project. Almost immediately after construction was complete, Butler defaulted on the loans by failing to make payments to SBA and West Alabama Bank and Trust as promised. SBA suffered a loss of over $1.7 million.
According to the Indictment, between March 2010 and October 2012, Butler devised and intended to devise a scheme and artifice to defraud SBA and to obtain money and property belonging to SBA by means of materially false and fraudulent pretenses, representations, and promises. It was a part of the scheme and artifice that Butler would and did submit false, forged, and altered documents to SBA in an effort to obtain an SBA 504 loan and receive over $1.7 million from SBA. Those false documents and representations included false, forged, and altered proposals, quotes, estimates, and bids submitted to SBA as evidence of the project’s cost, false, forged, and altered checks submitted to SBA as evidence of Butler’s cash injection, and false certifications on loan application forms that all information in the applications was true and complete. For instance, one count of the Indictment alleges that Butler submitted a construction company's cost proposal for the grocery store project that Butler is charged with altering to increase the proposed cost from $2.3 million to $4.2 million. Other counts detail further false documents that Butler submitted to SBA.
The indictment also contains multiple bank fraud counts charging Butler with a check-kiting scheme in 2011 and 2012 in which he carefully timed deposits and checks between his Fosters Groceries account at West Alabama Bank and Trust and his Butler Wholesale account at Alabama One Credit Union to artificially inflate the account balances. Hundreds of checks, totaling about $45 million, were deposited from one account to the other at the two financial institutions, according to the indictment. When West Alabama bank discovered the check-kiting scheme in February 2012 and refused to honor a number of Fosters Groceries' checks deposited into Butler's Alabama One Credit Union account, the credit union lost about $1.275 million, according to the indictment.
The third fraud scheme alleged in the indictment involves Butler's misrepresentations to the company that provided financing for his inventory at Butler Wholesale. Butler received loans from Next Gear Capital to buy inventory for his car lot. Each loan from Next Gear was secured by a specific car, and Next Gear conducted monthly inspections of the dealership's inventory. According to the indictment, Butler employed various schemes to defraud Next Gear Capital in order to continue receiving loans. His fraudulent representations included representing that cars were part of the dealership's inventory even though the cars had already had been sold, and lying to representatives of Next Gear when they conducted inspections of his inventory. Butler’s scheme caused Next Gear Capital a loss of at least $50,000.
Butler faces maximum penalties of 20 years imprisonment and a $250,000 fine on each of the 3 wire fraud counts, 30 years imprisonment and a fine of $1 million on each of the 30 bank fraud counts, and 5 years imprisonment and a $250,000 fine on each the 18 false statement counts.
The indictment also seeks to have Butler forfeit $3,085,000 as proceeds of his fraudulent schemes.
The FBI and SBA-OIG investigated the case and Assistant U.S. Attorney George A. Martin Jr. is prosecuting it.
The public is reminded that an indictment contains only charges and it will be the government's responsibility to prove the defendant's guilt beyond a reasonable doubt at trial.
Murphysboro Man Sentenced to 13 Years in Prison for Distributing Heroin in Saline CountyRead the Press Release
Brian L. Cayce, 45, of Murphysboro, Illinois, was sentenced today in United States District Court in Benton to 156 months in prison for distributing heroin, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Cayce was charged by a Federal Grand Jury in November 2012 with distributing heroin on September 18, 2012, to an agent of the Southern Illinois Drug Task Force who was working undercover at the time. He pled guilty to that offense on May 22nd.
In addition to the 13 year term of imprisonment, Cayce was ordered to pay fines and special assessments to the United States totaling $200, and was placed on a 3 year term of supervised release to follow his incarceration. Under federal law, parole has been abolished meaning that Cayce will be required to serve a minimum of 85% of his prison sentence.
Cayce has been held without bond in the custody of the United States Marshal since his arrest on the federal charges. He was returned to the Marshal’s custody to await designation to a Federal Bureau of Prisons facility.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force with the assistance of the United States Drug Enforcement Administration.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Leader of Canada Based Debit Card Skimming Ring Sentenced to 5 Years in PrisonRead the Press Release
A Canadian caught with more than 2600 stolen debit card numbers on his laptop computer was sentenced to five years in prison for access device fraud and aggravated identity theft, announced U.S. Attorney Jenny A. Durkan. DENNIS NGUYEN, of Vancouver, B.C. Canada was sentenced by Chief U.S. District Judge Marsha J. Pechman on October 4, 2013. NGUYEN was arrested in February 2013, after he traveled to Seattle to meet with some of the conspirators he used to make cash withdrawals using the stolen debit card numbers. The investigation revealed the numbers had been stolen using “skimming” devices surreptitiously attached to point of sale machines in coffee shops in Vancouver, BC.
The investigation revealed that NGUYEN directed various co-conspirators who would take the debit cards he manufactured with the stolen information and conduct rapid cash withdrawals from customer accounts at various ATMs in and around Seattle and Everett. When two of the co-conspirators were arrested, law enforcement seized a bag containing $77,140 in cash, 460 counterfeit cards, seven burner cell phones, a cash counting machine, a magnetic card strip encoder, a label printer, and miscellaneous supplies associated with the mass card skimming operation. When NGUYEN was arrested, his laptop computer, which he brought from British Columbia, contained over 2,600 bank card numbers linked to approximately 100 different financial institutions, both foreign and American. Of those card numbers, approximately 463 were connected to fraudulent cards previously recovered in the case.
The case was investigated by the U.S. Secret Service Electronic Crimes Task Force and was prosecuted by Assistant United States Attorney Steven Masada.
Former City of Miami Police Officer Convicted in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Manuel Orosa, Chief, City of Miami Police Department (MPD), and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce the conviction of Malinsky Bazile, 28, of North Miami Beach, for his participation in a stolen identity tax refund scheme.
Specifically, Bazile was convicted by a jury of one count of fraudulent use of unauthorized devices, in violation of Title 18, United States Code, Section 1029(a)(2), four counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), one count of exceeding authorized access to a protected computer, in violation of Title 18, United States Code, Section 1030(a)(4), and one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3).
According to testimony and evidence presented at trial, the defendant operated an identity theft tax refund scheme from January 2012 to October 2012. During that period, the defendant, while employed as a City of Miami Police Officer, used his access to the Florida driver’s license database to steal the personal identity information of approximately seven hundred middle-aged women with common last names throughout the State of Florida. Using those identities, the defendant filed false and fraudulent tax returns with the Internal Revenue Service seeking refunds payable on to pre-paid debit cards. The defendant was captured on multiple bank ATM videos withdrawing money from pre-paid debit cards loaded with fraudulent tax refund proceeds. FBI and MPD conducted a search at the defendant’s residence and found ledgers in a safe filled with hundreds of people’s identities and several pre-paid debit card containers. The defendant admitted to FBI and MPD that he made between $130,000 to $140,000 from the fraud scheme in 2011 and 2012.
Sentencing is scheduled for December 16, 2013 at 9:00 a.m. before U.S. District Judge Robin Rosenbaum. Bazile faces a possible maximum prison sentence of 33 years in prison.
Mr. Ferrer commended the FBI, MPD, and IRS-CI for their work on the case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Peter Forand.
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.
Desoto Man Faces Federal Prison for ‘Meth’ CaseRead the Press Release
On October 3, 2013, Leslie Blaine Clover, 48, of Desoto, Ill., was sentenced in United States District Court in Benton on a one-count superseding indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Clover, who had previously pled guilty to the methamphetamine offense, was sentenced to 168 months in prison, to be followed by 5 years of supervised release. Clover was also fined $200. The offense occurred between June 2012 and January 28, 2013, in Jackson and Randolph Counties. Evidence at the plea and sentencing hearings established, during the conspiracy, Clover provided others with pseudoephedrine for use in the manufacture of methamphetamine. Clover also sometimes acted as a look-out, while others were stealing methamphetamine-related items. Clover received an enhanced sentence based on his classification as a Career Offender.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, and Randolph County Sheriff’s Office.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
David Renz Pleads Guilty to Child Pornography OffensesRead the Press Release
SYRACUSE, NEW YORK – David J. Renz, 29, of North Syracuse entered guilty pleas in federal court in Syracuse today to all counts of a six count Indictment charging him with receipt and possession of child pornography, announced United States Attorney Richard S. Hartunian.
By his plea, Renz admitted that when FBI agents interviewed him in June of 2012 he consented to their search of a computer he used to download and store child pornography. He was arrested in January, 2013 after agents located over 500 video files and over 3,000 image files depicting child pornography on his computer. Renz also pled guilty to 5 counts of possession of child pornography related to images and videos he possessed on DVDs and a CD seized from his residence on the date of his arrest.
Upon sentencing, Renz faces a mandatory minimum sentence of 5 years in federal prison, a maximum term of imprisonment of 20 years, for the charge of receiving child pornography, and a maximum term of imprisonment of 10 years on each of the possession charges. In addition, he faces fines of up to $250,000 on each count and mandatory supervised release of no less than 5 years and up to life following any term of incarceration. In addition, conviction of the charged offenses will require Renz to register as a sex offender. Sentencing is scheduled for February10, 2014.
Renz's arrest was the result of an investigation by the Federal Bureau of Investigation as a part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The federal prosecution is being handled by Assistant U.S. Attorney Lisa Fletcher, who can be reached at 448-0672.
Thursday 3 October 2013
Yakima Man Sentenced to 85 Months ImprisonmentRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Michael Brandon Stewart, age 29, of Yakama, Washington, was sentenced for being a previously convicted felon in possession of a firearm. Senior United States District Court Judge Lonny R. Suko sentenced Stewart to an 85 month term of imprisonment and a 36 month term of court supervision following release from federal prison.
According to information disclosed during the court proceedings, in June 2011, Yakima Police Department officers became aware that Stewart allegedly offered to sell a firearm to an individual who was cooperating with them. At that time, the officers were aware that Stewart was a previously convicted felon and, therefore, prohibited from possessing firearms. Thereafter, law enforcement officers arranged a successful undercover sting operation – Stewart sold a .44 caliber handgun to the individual cooperating the officers. The Bureau of Alcohol, Tobacco, Firearms, and Explosives subsequently ran a trace on the handgun and discovered it had been stolen during a residential burglary. Stewart has a lengthy criminal history including convictions for residential burglary, first degree theft, third degree assault, possession of an illegal weapon, possession of methamphetamine, bail jumping, and delivery of a controlled substance.
Michael C. Ormsby said, "The United States Attorney's Office, the Yakima Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, are committed to protecting communities in the Eastern District of Washington from convicted felons who unlawfully possess firearms. This case was particularly egregious because the handgun had been stolen during an earlier residential burglary."
This investigation was conducted by the Yakima Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case was prosecuted by Tom Hanlon, an Assistant United States Attorney for the Eastern District of Washington.
11-CR-02106-LRS
Wilmington Man Sentenced for Robbery and Firearm ChargesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced AARON MONROE , 41, of Wilmington to 324 months imprisonment, followed by 5 years of supervised release.
Investigation of this case was conducted by the Wilmington Police Department along with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant United States Attorney Charity Wilson represented the government. Ms. Wilson is a prosecutor with the District 5 District Attorney’s Office encompassing New Hanover and Pender Counties. District Attorney Ben David has assigned her to the United States Attorney’s Office to prosecute violent crime and firearm related cases.
Aaron monroe was named in an Indictment filed on April 24, 2012 charging him with Robbery of a Business Engaged in Interstate Commerce, Using and Carrying a Firearm During and in Relation to a Crime of Violence and Felon in Possession of a Firearm. On October 1, 2012, monroe pled guilty to those charges.
According to the investigation, on December 7, 2011, MONROE along with his father, Victor McClain, armed with a firearm and a BB gun, entered Game Giant, located in Wilmington, North Carolina. Upon entry into the store, MONROE and McClain pretended to be customers until the store clerk appeared to be alone. MONROE and McClain produced firearms and demanded money. Unbeknownst to MONROE, there were still two customers in the store who also were robbed of their money. After getting money from the cash register, MONROE and McClain forced the victims into a bathroom and barricaded the door with a shelf. Once the victims heard the door chime, that indicated the robbers had left the store, they forced the door opened and escaped. The store clerk ran outside and saw an officer with the Wilmington Police Department and pointed out the robbers who were leaving in a car. The Wilmington Police Department attempted to stop the car. MONROE was driving the car and refused to stop for law enforcement. MONROE recklessly endangered the Wilmington citizenry by speeding throughout the city, running stop signs, weaving into oncoming traffic and driving recklessly through parking lots of businesses and schools. After striking a fence pole in a vacant lot, the high speed chase ended and MONROE and McClain were taken into custody. MONROE confessed to his participation in the robbery of Game Giant.Wilmington Man Sentenced for Firearm ViolationsRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced William Jenkins , 25, of Wilmington to 137 months imprisonment, followed by 3 years of supervised release.
jenkins was named in an Indictment filed on April 24, 2012 charging him with Possession of a Firearm by a Felon and Theft of Firearms from a Federal Firearms Licensee. On July 2, 2013, jenkins pled guilty to those charges.
According to the investigation, on October 26, 2011, William JENKINS and Joshua Zack traveled to Rocky Point Guns and Ammo in Rocky Point, North Carolina and broke into a locked trailer behind the store. They stole 27 firearms from that businesses. JENKINS and Zack then took the firearms to JENKINS’ residence in Wilmington where they hid the firearms in JENKINS’ back yard. JENKINS and Zack were caught on November 2, 2011 when they went back to the same store in an apparent attempt to break in again. Officers with the Pender County Sheriff’s Office were patrolling the area more heavily after the first break in and caught JENKINS and Zack as they were parked by the store about to break in a second time. Several of the guns have been recovered in various investigations by the Wilmington Police Department.
Investigation of this case was conducted by the Pender County Sheriff’s Office, the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant United States Attorney Charity Wilson represented the government. Ms. Wilson is a prosecutor with the District 5 District Attorney’s Office encompassing New Hanover and Pender Counties. District Attorney Ben David has assigned her to the United States Attorney’s Office to prosecute federal crimes of violence and firearm related crimes.
United States Attorney Identifies Operational Limitations During Government ShutdownRead the Press Release
PHOENIX - United States Attorney John S. Leonardo announced today that operations of the Office of the U.S. Attorney for the District of Arizona, all divisions – Tucson, Phoenix, Flagstaff and Yuma, are being affected by the partial shutdown in effect since midnight, October 1, 2013.
Most criminal litigation and related work will continue with limited interruption, as these activities are deemed essential to the safety of human life and the protection of property. The U. S. Attorney’s Office will continue to work closely with federal, state, and local law enforcement on criminal matters. However, because of the appropriation lapse and partial shutdown, much of the office’s staff working on civil litigation is being furloughed. Administrative and criminal support staff are also being furloughed. All civil litigation in which the office is involved will be curtailed or postponed to the extent possible without compromising public safety or the protection of property, and always subject to the direction of the federal courts.
Because of the effects of the appropriations lapse on activities of the U.S. Department of Justice, the U.S. Attorney’s Office will not be able to readily respond to media inquiries. Press releases will be limited to urgent matters involving public safety. The office’s website will not be actively during the shutdown. The district will continue to receive communications from the public via mail, email and/or telephone.
For additional information concerning the effects of the appropriations lapse and partial shutdown, visit www.justice.gov/jmd/publications/doj-contingency-plan.pdf or http://www.justice.gov/usao/az/.
RELEASE NUMBER: 2013-078_Shutdown
Trustee Sentenced to 33 Months in Federal Prison and Ordered to Pay $211,165 in Restitution on Tax Evasion ConvictionRead the Press Release
LUBBOCK, Texas — Randy Lynn White was sentenced today by U.S. District Judge Sam R. Cummings to 33 months in federal prison, a term of three years supervised release, and ordered to pay $211,165 in restitution, following his guilty plea in June 2013 to an Information charging one count of tax evasion. Judge Cummings ordered that White surrender to the Bureau of Prisons on November 7, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, White admits that he intentionally and willfully did not file required tax returns for 2007, 2008 and 2009 in order to evade the payment of taxes due and owing to the United States. White agrees that as a result of this criminal conduct, the tax loss to the U.S. for those years is $211,165.
White was the sole trustee of the Frank F. McMordie Jr Family Trust, f/b/o Frank F. McMordie III (the “Trust”). According to the factual resume, White admits that he derived substantial benefits and income from the Trust, both in administration fees from the Trust paid to him, and in monies he took from the Trust for his personal use. White had absolute control over the Trust’s assets, which consisted primarily of a large ranch in the Texas Panhandle that produced mineral interests. White paid himself excessive administrative fees and spent most of the Trust’s remaining money on extravagant personal expenditures, such as making his personal house payments, and buying motorcycles, diamond and gold jewelry and cars.
The factual resume goes on to state that White attempted to conceal his extravagant expenditures by paying a relatively small amount of the Trust’s income to the Trust’s beneficiary, Frank F. McMordie III, who resided in Mexico. White also admits that as part of his scheme to evade taxes, he disguised many of the funds that he diverted from the Trust’s bank account to his personal use by placing false business notations on the checks, falsely claiming that the expenditures were for business purposes. These checks falsely indicated that he was using the funds to operate what he designated as the “south” ranch. He falsely indicated that he was using the money for ranch operating expenses, such as cattle vaccines, loading chutes, cattle guards, trailers for the south ranch, fencing, and south ranch payroll, when, in fact, the Trust did not operate any ranch whatsoever.
The case was investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Paulina Jacobo prosecuted.
Sentences for September 27 - October 03, 2013Read the Press Release
Joseph Daniel Sterkel, 31, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 2, 2013, for possession of a machinegun and perjury. Sterkel was arrested in Natrona County, Wyoming. He received 24 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $250.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Robert Anthony Johnson, 27, of Fort McCoy, Florida, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 27, 2013, for possession with intent to distribute methamphetamine and aiding and abetting. Johnson was arrested in Natrona County, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and Wyoming Highway Patrol.
Northern Arapaho Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Christopher A. Crofts announced today that onOctober 2, 2013, Claude Lee Duran, Jr., 26-year-old enrolled Northern Arapaho Tribal member, was sentenced by United States District Court Judge Scott Skavdahl to 80 months imprisonment, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $969.35 and a $100.00 special assessment. Mr. Duran Jr. previously pled guilty to the offense of assault resulting in serious bodily injury. This case was investigated by the Bureau of Indian affairs with the assistance of the Federal Bureau of Investigation.
Moses Lake Man Sentenced to Five Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Santiago Velasquez Martinez, age 30, of Moses Lake, Washington, was sentenced on October 2, 2013, after having previously pleaded guilty on July 2, 2013, to Distribution of Child Pornography. Chief United States District Court Judge Rosanna Malouf Peterson sentenced Martinez to a five year term of imprisonment, to be followed by a life term of court supervision after he is released from Federal prison.
According to information disclosed during the court proceedings, in August of 2012, the United States Secret Service conducted an online undercover investigation to identity those possessing and distributing child pornography on the Internet using peer to peer file sharing software. As a result of the investigation, on October 30, 2012, the USSS executed a search warrant at Martinez's residence and located his laptop computer that was found to contain 249 videos and 54 still images of child pornography. Some of the videos depicted minors in bondage, and a number of the child pornography images were of children under the age of 12 years.
Michael C. Ormsby stated, "The United States Attorney's Office in the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes. Prosecuting offenders who are not only collecting child pornography, but also distributing child pornography to others is a priority of the United States Attorney's Office."
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative ("PSC") has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue child victims;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources".
This investigation was conducted the United States Secret Service. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
CR-12-0122-RMP
Lubbock Man Sentenced to 24 Months in Federal Prison for Committing PerjuryRead the Press Release
LUBBOCK, Texas — Ernesto Garcia, 59, of Lubbock, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to24 months in federal prison, and a term of three years supervised release, following his guilty plea in June 2013 to one count of perjury, stemming from his sworn testimony in a detention hearing held in May 2012 in federal court in Lubbock. Garcia has been in federal custody since his arrest in late May 2012. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, on April 16, 2013, the U.S. filed a Motion to Detain defendant Pena, in the case of U.S. v. San Juanita “Janie” Pena, Case No. 5:12-CR-024-C(2). In that case, defendant Pena was charged with conspiracy to commit tax fraud and false statements, and numerous substantive counts of the same. One of the government’s main allegations was that Pena had no home, residence, or place to live or go if she were released. Pena contested the motion and a detention hearing was held on May 2, 2012.
During that hearing, according to the factual resume, Pena called Garcia as a witness to testify on her behalf. After being sworn in, Garcia testified that he had known Pena for 10 to 12 years and that he could be responsible for her if she were released into his custody. On cross-examination, in response to questions posed to him, Garcia testified that he did not have a criminal record. In fact, Garcia well knew that he did have a criminal record, having been convicted in 1993 in Iowa for possession of a controlled substance.
The case was investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Paulina Jacobo prosecuted.
Lafayette County Man Imprisoned for Attempted Enticement of a MinorRead the Press Release
Felicia C. Adams, United States Attorney for the Northern District of Mississippi, announced that:
Brandon Matthew Oliver, 37, of Oxford, Mississippi, was sentenced Wednesday, October 2, 2013, by U. S. District Judge Michael P. Mills, in Oxford, Mississippi. Oliver had previously pled guilty to attempting to entice a 15 year old girl to meet him for sex in Tupelo, Mississippi, using a means of interstate communication. Oliver was sentenced to 120 months in prison and was sentenced to 7 years supervised release following the term of imprisonment. Oliver remained in custody and will be required to register as a sex offender when released from prison.
The case was investigated by the Tupelo, Mississippi, Police Department and was prosecuted by Assistant United States Attorney Clay Joyner.
Contact:
John Marshall Alexander, Chief of Criminal Division, United States Attorney’s Office,
Oxford, Mississippi (662) 234-3351Former Yoakum County Sheriff Deputy Pleads Guilty in Federal CourtRead the Press Release
Defendant Admits His Involvement in Cocaine Distribution Conspiracy
LUBBOCK, Texas — Inoe R. Valdez, Jr., 43, a former deputy sheriff with the Yoakum County Sherriff’s Department (YCSD), appeared in federal court today and pleaded guilty to a felony offense stemming from his involvement in a cocaine distribution conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Valdez pleaded guilty to an Information charging one count of unlawful use of a communications facility. Valdez, who will remain on bond, faces a maximum statutory penalty of 48 months in federal prison and a $250,000 fine. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report.
Valdez admits that from July 2009 until approximately August 2010, he used a cellphone to commit, cause and facilitate a conspiracy to distribute and possess with the intent to distribute cocaine and distribution and possession with intent to distribute cocaine.
According to documents filed in the case, in February 2010, investigators with the Texas Department of Public Safety (DPS) learned that Valdez was associating with a particular individual who was suspected of trafficking controlled substances in Yoakum County, Texas. Following a traffic stop of this individual, DPS learned that this individual had Valdez’s cell phone number saved in his cell phone and in fact, had made 15 calls to, and received one call from, Valdez, during the period November 1, 2009 to March 18, 2010.
This individual advised DPS that Valdez had instructed him/her to call or text him and say that he/she “had some information” for Valdez, which would be the signal for Valdez to go to that individual’s home so they could discuss narcotics-related matters. This individual advised that in winter 2009, Valdez asked him/her for three to four ounces of cocaine to give to another individual in Brownsfield, Texas. This individual sold Valdez three ounces of cocaine for $2,100. This individual also advised DPS that this was not the only time he/she furnished cocaine to Valdez.
In June 2010, a person, working at the direction of the DPS, met Valdez and asked Valdez for $50 worth of cocaine. Valdez advised this person that he would provide it in a day or two. This person told Valdez that they had a friend who was going to send them cocaine from Mexico. Valdez advised that he would purchase one-quarter of a kilogram of cocaine per week at $500 per ounce and sell it for $800 per ounce. Valdez also indicated an interest in receiving marijuana.
When DPS investigators interviewed Valdez in November 2011, he stated that his financial debts had become overwhelming, and he had discussed a joint venture with the first individual to smuggle 200-300 pounds of marijuana to Oklahoma or Kansas. Valdez advised that this venture never materialized, but that this same individual later approached Valdez about selling cocaine and Valdez agreed.
Valdez admitted that from summer 2009 to summer 2010, while he worked as a deputy in the YCSD, he distributed approximately 1.5 pounds of cocaine. Valdez stated that he stopped selling cocaine in August 2010 because he learned he was under investigation; shortly thereafter, he resigned from the YCSD.
The case is being investigated by the Texas DPS, the FBI, the Yoakum County District Attorney’s Office and the Yoakum County Sheriff’s Office. Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
Former Attorney Indicted for Securities and Bank FraudRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted a former attorney in connection with a wire, mail and securities fraud scheme involving the fraudulent taking of more than $2.8 million dollars in investment funds, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr. and Alabama Securities Commission Director Joseph Borg.
A 21-count indictment filed in U.S. District Court charges CHRISTOPHER SHAWN LINTON, 34, of Alabaster, with the securities fraud scheme and with bank fraud arising out of the submission of a fraudulent commercial loan application to Iberia Bank for a loan of $908,650.
According to the indictment, the securities fraud scheme unfolded as follows:
In 2007, Linton became an officer, partner and part owner of a business known as Integrity Capital Inc., by purchasing stock in the company. Integrity Capital Inc. was a factoring business located in the greater Birmingham area. Its business was to make advance payments to lawyers who had submitted payment vouchers for work performed for the State of Alabama. Integrity Capital would then receive the voucher payments from the state and keep a percentage as a fee.
In 2009, Linton formed Integrity Capital LLC. Beginning about August 2009, Linton recruited investment advisors to solicit investments in Integrity Capital LLC in order to purchase the assets and capital stock of Integrity Capital Inc. Between September 2009 and December 2011, a total of 12 individuals invested more than $2.8 million in Integrity Capital LLC. The investors mailed, wired or delivered money to Linton and the funds were deposited into one of several bank accounts held by the law firm where Linton worked as an attorney. After receiving the investor funds, Linton fraudulently converted them for personal use by writing personal checks to himself and by using the funds for non-investment purposes. The non-investment purposes, included, but were not limited to, the purchase of his personal residence, construction projects at the residence, private jet flights, vacations, recreational vehicles, furniture, luxury items, Auburn football tickets and a donation to the Heisman Trophy Trust.
The maximum penalty for each wire fraud charge is 20 years in prison and a $250,000 fine, the maximum penalty for each mail fraud charge is 20 years in prison and a $250,000 fine, the maximum penalty for money laundering is 10 years in prison and a $250,000 fine, the maximum penalty for each securities fraud charge is 5 years in prison and a $250,000 fine, and the maximum penalty for bank fraud is 30 years in prison and a $1,000,000 fine.
The FBI and Alabama Securities Commission investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting along with Greg Biggs Associate Counsel with Alabama Securities Commission.The public is reminded that an indictment contains only charges and it will be the government's responsibility to prove the defendant's guilt beyond a reasonable doubt at trial.
Doctor Sentenced for Tax OffenseRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Louise W. Flanagan sentenced susan marie lee , age 58, of Raleigh, North Carolina, to 36 months imprisonment and ordered her to pay $496,854.64 in restitution to the Internal Revenue Service. LEE was immediately taken into custody after the sentencing hearing. LEE was named in a Criminal Information filed on March 4, 2013 charging her with Corrupt Interference with the Internal Revenue laws. On May 14, 2013, LEE pled guilty to that charge.
According to the investigation, LEE, a graduate of the University of North Carolina Dental School, has an extensive history of non-compliance with the revenue laws. From 1996 through and including 2009, Dr. LEE endeavored to obstruct and impede the Internal Revenue Service by failing to file income tax returns or pay taxes she claimed to owe, filing false income tax returns, forming sham entities to disguise personal expenses as payments related to her dental practice, transferring ownership of her real property to nominees, and fraudulently seeking to discharge her IRS debt by filing for bankruptcy. Despite having numerous opportunities to settle her obligations with the IRS administratively, Dr. LEE maintained a defiant position, refusing to comply with the tax laws. She affirmatively sought to divert her income into sham corporations and hide her assets from seizure. Finally, in 2009, she filed for bankruptcy in an effort to discharge nearly $1 million in tax debt due and owing to the IRS. The Civil Division of the US Attorney’s Office represented the IRS in US Bankruptcy Court and successfully defeated her attempts to discharge this debt.
Investigation of this case was conducted by the Internal Revenue Service Criminal Investigations. Assistant United States Attorney Katherine Burnette represented the IRS in the bankruptcy action and Assistant United States Attorney Susan B. Menzer prosecuted the case for the government.
Correctional Institution Employee Sentenced on Bribery Related OffenseRead the Press Release
NEW BERN - United States Attorney Thomas W. Walker announced today RAYE LYNN HOLLEY, 50,a formercorrectional officer at the Rivers Correctional Institution, Winton, North Carolina, and KENNETH DODD, a formerinmate at the Rivers Correctional Institution, were sentenced today by United States District Judge Louise W. Flanagan to 20 months and 37 months imprisonment, respectively.
Investigation revealed that HOLLEY, while employed as a correctional officer at the Rivers Correctional Institution, accepted payments from inmates within the facility in return for smuggling in contraband items such as cell phones and cigarettes. It further showed that DODD and other inmates paid bribes to correctional officers to gain their cooperation in the scheme. Two others have been previously convicted and sentenced for their conduct in the scheme: former Rivers Correctional Officer Rhonda Boydwassentenced in July 2013 to 20 months’ imprisonment; and former Rivers inmate Roland Bazemore was sentenced in April 2013 to 30 months’ imprisonment. In May, 2013, former correctional officer Rashonda Cross entered a plea of guilty for conspiring to accept bribes from inmates at Rivers, as well. Cross is set to be sentenced in December 2013.
Investigation of this case was conducted by the Department of Justice, Office of Inspector General and the Federal Bureau of Investigation, with assistance provided by the United States Postal Inspection Service.
Convict Edison Burgos-Montes Sentenced to Life in Prison for the Murder of A WitnessRead the Press Release
SAN JUAN, PR – On October 2, 2013, Edison Burgos-Montes was sentenced to life in prison following his conviction of two capital murder counts, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and United States Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez announced today.
On August 29, 2012, Burgos-Montes, 43, was convicted after a five month trial in U.S. District Court in San Juan of one count of conspiracy to possess with intent to distribute cocaine, one count of conspiracy to import cocaine, one count of murdering a witness to prevent testimony in an official proceeding, and one count of murdering a witness in retaliation for providing information to law enforcement.
The counts of conviction on capital murder charges necessitated a separate penalty phase of the trial. That phase of the trial began on September 10, 2012, and concluded after a week and a half of testimony on September 19, 2012. The jury began its deliberations on September 25, 2012, and concluded them after two and a half days without coming to a unanimous verdict. U.S. District Court Judge Jay García-Gregory presided over the trial. There is no parole in the federal system.
On or about July 4, 2005, Burgos-Montes killed Madelyn Semidey-Morales, a government witness and informant, to prevent her from further informing authorities about the defendant’s unlawful narcotics trafficking and to retaliate against her for providing information relating a law enforcement officer. To this day, her body has not been found. Burgos-Montes was Semidey-Morales’s consensual partner.
The trial was prosecuted by Trial Attorneys Julie Mosley and Jeffrey Kahan of the Justice Department Criminal Division’s Capital Case Section and Assistant United States Attorney Marcela Mateo of the District of Puerto Rico. The case was investigated by the Drug Enforcement Administration and the Puerto Rico Police Department, with assistance from the FBI’s San Juan Field Office Evidence Recovery Team.
Anchorage Drug Dealer sentenced in Federal Court to 84 months in prisonRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a resident of Anchorage has been sentenced in federal court for his conviction of drug trafficking conspiracy.
Rhadames Marmolejos, Jr., 21, of Anchorage, Alaska, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline to 84 months in prison.
According to information presented to the court by Special Assistant U.S. Attorney Erin White Bradley, who prosecuted the case, Marmolejos sold heroin on eight separate occasions to an undercover agent working for the DEA. Marmolejos obtained the drugs from his co-defendants, Christopher Thomas Mejia and Jared Thomas Bowers. The total amount of heroin involved in this drug trafficking conspiracy amounted to over 500 grams. At the time of his arrest, law enforcement discovered a Taurus Pro DS semiautomatic pistol, a Remington 870 Tactical 12-gauge shotgun, two drug scales with heroin residue, and assorted ammunition in Marmolejos’ apartment.
Prior to imposing sentence, Judge Beistline noted both Marmolejos’ youth and his assaultive criminal history involving firearms. In prior state cases, Marmolejos assaulted his victims while using both firearms and death threats. Marmolejos pled guilty to his offense, while his co-defendants were convicted at trial in August of this year. Mejia and Bowers will be sentenced later this month.
Ms. Loeffler commends the Drug Enforcement Administration and the United States Postal Inspection Service for the investigation leading to the convictions in this case. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.
Alleged Al-Qaeda Member Extradited to U.S. to Face Charges in Terrorism ConspiracyDefendant and Others Planned Suicide Bomb Attack Against Americans in EuropeRead the Press Release
WASHINGTON – Nizar Trabelsi, a Tunisian national, has been extradited to the United States to face charges in federal court in the District of Columbia stemming from a conspiracy to carry out a suicide bomb attack against Americans in Europe.
Trabelsi was arrested in Belgium on Sept. 13, 2001, before he carried out the planned attack. After 12 years in custody there, where he served time on Belgian charges, Trabelsi was extradited and transported today to face charges in the United States. Trabelsi was indicted in 2006 by a grand jury in the U.S. District Court for the District of Columbia, and a superseding indictment was filed the following year. The charges were unsealed today.
The indictment alleges that Trabelsi personally met in the spring of 2001, with Osama bin Laden to volunteer for a suicide bomb attack against U.S. interests. Preparations unfolded over the next several months, according to the indictment, with Trabelsi allegedly obtaining chemicals in Europe and subsequently joining others to scout a potential target: a military facility that was used by the United States and the United States Air Force.
The charges were announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia, John P. Carlin, Acting Assistant Attorney General for National Security, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Trabelsi, 43, is charged with conspiracy to kill U.S Nationals outside of the United States; conspiracy and attempt to use weapons of mass destruction; conspiracy to provide material support and resources to a foreign terrorist organization; and providing material support and resources to a foreign terrorist organization.
According to the indictment, Trabelsi was residing in Germany in 2000, when he met with other conspirators and made preparations to travel to Afghanistan to train for jihad.
In the spring of 2001, the indictment alleges, he met with bin Laden in Afghanistan, and offered to carry out a suicide bomb attack. According to the indictment, he later spoke with Muhammed Atef, a high-ranking member and chief military planner of al-Qaeda, at bin Laden’s direction. Additionally, the indictment states, he met with others with whom he was to form a cell for the purpose of carrying out a suicide attack.
According to the indictment, Trabelsi and other conspirators discussed various possible targets for a suicide bomb attack and he undertook training in how to place explosives. In June 2001, the indictment states, Trabelsi traveled to Pakistan, where he obtained money from an al-Qaeda associate for use in carrying out his mission. The following month, he rented an apartment in Brussels, Belgium. While in Belgium, Trabelsi bought quantities of chemicals to be used in manufacturing a 1,000-kilogram bomb, the indictment alleges. Additionally, according to the indictment, he traveled at night with conspirators to scout the military base.
The investigation into this matter was conducted by the FBI’s Washington Field Office. The Department of Justice, Criminal Division’s Office of International Affairs provided significant assistance in this matter. The Department of Justice expressed appreciation to the government of Belgium and the Belgian Federal Police for their assistance. The prosecutors handling the case are Assistant U.S. Attorneys Jonathan M. Malis and Opher Shweiki of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Mara Kohn of the Counterterrorism Section of the Justice Department’s National Security Division.
If convicted of the charges filed in the indictment, Trabelsi faces a maximum sentence of life in prison. An indictment is merely a formal charge that a defendant has violated a criminal law. All defendants are presumed innocent until and unless proven guilty.
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Wednesday 2 October 2013
Vancouver Man Pleads Guilty to Arson ConspiracyRead the Press Release
A 60-year old Vancouver, Washington man pleaded guilty October 2, 2013 to conspiracy to commit arson in connection with a March 2003 arson, announced U.S. Attorney Jenny A. Durkan. MARK DUANE FUSTON, also known as “Mau Mau,” admitted he used propane and various flammable liquids to burn down the ‘Desire Video’ store that was nearing completion on NE 94th Avenue in Vancouver. The fire destroyed the building causing some $850,000 in damage. Sentencing is scheduled for December 16, 2013, in front of U.S. District Judge Benjamin H. Settle. Prosecutors have agreed to recommend no more than 37 months in prison. Judge Settle is not bound by the recommendation and can sentence FUSTON to any sentence up to the five year maximum.
According to the plea agreement, FUSTON was hired to torch the building. FUSTON and another man (now deceased) acted together to commit the arson. On the night of March 27, 2003, FUSTON rerouted a propane line into the building and placed a remote control incendiary device in the building. However, when the remote control device malfunctioned, FUSTON returned to the building and left a fuel trail to the building which he later ignited manually. The fire ignited the propane trapped inside the building causing the explosion and fire.
FUSTON was indicted March 27, 2013.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Vancouver Police Department and the Vancouver Fire Department. The case was prosecuted by Assistant United States Attorney Gregory A. Gruber.
Tax Evader Sentenced to 30 Months in PrisonRead the Press Release
PITTSBURGH - Thomas D. Tuka has been sentenced in federal court to 30 months in prison on his conviction of income tax evasion and failure to file tax returns, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence.
According to information presented to the court, Tuka failed to file taxes and evaded income tax on more than $480,000 in taxable disability income he received during the period from 2003 - 2008.
Prior to imposing sentence, Judge McVerry stated that Mr. Tuka had previously served honorably in the military but [in these actions] "thumbed his nose at those serving today and all those who pay their taxes."
Assistant United States Attorney Leo M. Dillon prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of Tuka.
Second Female Getaway Driver Arrested and Detained in the Two St. Lucie County PNC Armed RobberiesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, John A. Bolduc, Chief, Port St. Lucie Police Department, Kenneth Mascara, St. Lucie County Sheriff’s Office, J. Michelle Morris, Chief, Sebastian Police Department, and Deryl Loar, Sheriff, Indian River Sheriff’s Office, announce the arrest and detention of Raven Simone Sayers, 23, of Hallandale, FL. Sayers made her initial appearance on September 26, 2013, and was ordered detained pending trial as both a risk of flight and danger to the community by U.S. Magistrate Judge Frank J. Lynch, Jr. in Ft. Pierce. She is scheduled for arraignment on Friday October 4, 2013.
The criminal complaint charged Sayers with conspiracy to obstruct, delay, or affect commerce or the movement of any article or commodity in commerce by robbery (Hobbs Act), in violation of Title 18, United States Code, Section 1951; and conspiracy to use and carry a firearm during and in relation to a crime of violence in violation of Title 18, United States Code, Sections 924(o) and 924(c). If convicted of the Hobbs Act robbery conspiracy, Sayers faces a possible maximum statutory sentence of 20 years in prison. If convicted of the conspiracy to use and carry a firearm during and in relation to a crime of violence, Sayers faces a mandatory minimum of seven years, and a possible maximum sentence of life, in prison, consecutive to any other sentence imposed.
According to the criminal complaint, on July 8, 2013, the PNC Bank, located in Fort Pierce, Florida, and PNC Bank in Port St. Lucie, Florida were robbed almost simultaneously at gunpoint by groups of black males wearing white clothing and white cloth masks. In each robbery, the groups of males fled in mini vans stolen earlier that morning. One group, was apprehended after a police chase that ended near the intersection of Port St. Lucie Boulevard and Aster Road in Port St. Lucie, Florida. Upon execution of a state search warrant on the white Chrysler sedan, a large amount of currency, a semi-automatic handgun, several cellular phones, cloth gloves, and numerous articles of clothing, consistent with what the bank robbers wore during the robbery of the PNC Bank in Fort Pierce, Florida, was recovered. The driver Tomaleesha Jeffie Laqua McKeliver, and the three passengers, Anthony Isaac Johnson, Allan Demetrius Bradford, and Ivory Lee Robinson, III were arrested and transported to the Port St. Lucie Police Department.
The criminal complaint also states that shortly after two of the males fled the PNC Bank in Port St. Lucie, Florida, the third became momentarily trapped inside, and was observed removing clothing as he fled. A bag containing money was recovered near the PNC Bank, and Paul Edward Moore was arrested nearby and transported to the Port St. Lucie Police Department. With the exception of Moore, the other individuals involved in the PNC Bank in Port St. Lucie, Florida, remained at large.
During Sayers’ detention hearing, an FBI Agent testified that Sayers was implicated as part of the West Palm Beach group that traveled to St. Lucie County for the specific purpose of robbing PNC banks. According to the agent, Sayers was identified as the second getaway driver, and that cell tower records place Sayers in close proximity to both of the St. Lucie County PNC banks, prior to the gun point robberies, and near the site of the minivan thefts. Testimony also revealed that Sayers was in cell phone contact with at least three of the five co-defendants, around the time of the two St. Lucie County bank robberies. The FBI agent also testified that there is a West Palm Beach Walmart video showing Sayers purchasing gloves, consistent with those worn by the robbers during the two St. Lucie County PNC bank robberies.
Mr. Ferrer commended the investigative efforts of the FBI, Port St. Lucie Police Department, St. Lucie County Sheriff’s Office, and the Sebastian Police Department for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
A criminal complaint is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Realtor Indicted for Tax Evasion and False StatementsRead the Press Release
TALLAHASSEE, FLORIDA – A two-count indictment was filed today in U.S. District Court in Tallahassee, charging William “Geri” Eaton, 59, with tax evasion and making false statements in a matter involving a health care benefit program.
The indictment alleges that between August 2010 and December 2011, Eaton willfully evaded payment of more than $650,000 in federal income taxes by concealing from the Internal Revenue Service the nature, location, and extent of his assets, by making false and misleading statements and material omissions concerning the existence of IRS liens on his property, and by opening a bank account using a false social security number. The indictment also alleges that in October 2011, Eaton made false statements and submitted false documents in a matter involving Sacred Heart Health System.
If convicted, Eaton faces a maximum of five years in prison on each count of the indictment.
The case was investigated by IRS Criminal Investigation. It is being prosecuted by Assistant United States Attorney Karen Rhew-Miller
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.Newburyport Man Sentenced to 10 Months in Prison for Social Security FraudRead the Press Release
BOSTON - A Newburyport man was sentenced today for theft of public money.
John Flaherty, 61, was sentenced by U.S. District Court Judge Denise J. Casper to 10 months in prison, followed by one year of supervised release. He was also ordered to pay $168,830 in restitution to the Social Security Administration. In June 2013, Flaherty pleaded guilty to theft of public money.
From 1999 to 2012, Flaherty took monthly Social Security Widow's benefits intended for his mother, who was deceased. The payments totaled $168,830.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Office of Inspector General, Social Security Administration, Office of Investigations – Boston Field Division, made the announcement today. The case was prosecuted by Timothy Landry of Ortiz’s Major Crimes Unit.
Multi-Agency Investigation Leads to Drug Charges Against 11 People in Four StatesRead the Press Release
PITTSBURGH – Eleven people from several states have been indicted by a federal grand jury in Pittsburgh for violating federal drug trafficking laws on a major scale, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on Sept. 25 and unsealed on Oct. 1, charges: Luis Carde, 41, of Pittsburgh, Pa.; Jason Beggarly, 36, of Pittsburgh, Pa.; T Nolan Hardeman, 31, of Pittsburgh, Pa.; Orlando Hernandez, 39, of Kissimmee, Fla.; Nakei Jackson, 37, of Pittsburgh, Pa.; Edred Melendez, 39, of Orlando, Fla.; Lamar Miles, 36, of Pittsburgh, Pa.; Rhionna Rhodes, 33, of Pittsburgh, Pa.; Robert Rios, 25, of Ridgewood, New York; Angel Rodriguez, 50, of Cleveland, Ohio; and Justin Silvio, 36, of Pittsburgh, Pa., as defendants
According to the indictment, from in and around January 2011 to in and around September 2013, the above-named defendants conspired with each other to distribute and possess with intent to distribute five kilograms or more of cocaine, 500 grams or more of methamphetamine, and one kilogram or more of heroin.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Katherine A. King and Craig W. Haller are prosecuting this case on behalf of the United States.
A task force led by the Drug Enforcement Administration conducted the investigation leading to the indictment in this case. The task force also included several other federal, state, and local agencies from multiple states, including the Internal Revenue Service - Criminal Investigations; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshals Service, the Pennsylvania State Police, the Allegheny County District Attorney’s Office, the Pittsburgh Bureau of Police, the Allegheny County Police Department, the Penn Hills Police Department, the Monroeville Police Department, and the McKees Rocks Police Department.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Vice President of Finance Pleads Guilty to Fraud Scheme and Tax EvasionRead the Press Release
SAN FRANCISCO - Stella W. Kwan pleaded guilty to mail fraud and tax evasion in federal court in San Francisco yesterday, United States Attorney Melinda Haag announced.
In pleading guilty, Ms. Kwan admitted that she served as the Vice President of Finance for Bite Communications, a global marketing and management consulting company with offices around the world, including in San Francisco. Ms. Kwan was responsible for maintaining Bite’s financial books and records and handling incoming and outgoing funds. Ms. Kwan admitted that she prepared and signed more than 60 unauthorized checks payable to herself or for her benefit, including paying her personal American Express bills. In all, Ms. Kwan admitted that from 2008 until she was terminated in 2012, she defrauded her employer out of more than $2 million. Ms. Kwan also admitted that, during the same time period, she committed tax evasion by understating the taxable income on her federal income tax returns.
Ms. Kwan, 43, of San Francisco, was charged by Information on August 22, 2013, with one count of mail fraud, in violation of Title 18, United States Code, Section 1341, and one count of tax evasion, in violation of Title 26, United States Code, Section 7201. Under the plea agreement, Ms. Kwan pled guilty to both counts.
Ms. Kwan’s sentencing hearing is scheduled for January 28, 2014, before The Honorable William H. Alsup, U.S. District Court Judge, in San Francisco. The maximum statutory penalty for mail fraud, in violation of Title 18, United States Code, Section 1341, is 20 years in prison, a fine of $250,000, and restitution. The maximum statutory penalty for tax evasion, in violation of Title 26, United States Code, Section 7201, is 5 years in prison, a fine of $250,000, and 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.
Doug Sprague is the Assistant U.S. Attorney who is prosecuting the case with the assistance of legal tech Rayneisha Booth The prosecution is the result of a six-month investigation by the Internal Revenue Service—Criminal Investigation and the Federal Bureau of Investigation.