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Wednesday 2 October 2013
Former TCU Football Player and Fellowship of Christian Athletes Staffer Is Sentenced to 168 Months in Federal Prison for Defrauding Investors in Nearly $16 Million Forex ScamRead the Press Release
Defendant Also Ordered to Pay $9,985,403 in Restitution
DALLAS – Eldon A. Gresham, Jr., 67, formerly of Olney, Texas, was sentenced this afternoon, by U.S. District Judge Jorge A. Solis, to 168 months in federal prison, three years of supervised release, and ordered to pay $9,985,403 in restitution following his guilty plea in January 2013 to one count of mail fraud stemming from a foreign currency exchange (ForEx) scam he ran from January 2004 through June 2009. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Gresham recruited at least 90 individuals to invest in his ForEx trading business, The Gresham Company, which he operated out of Peachtree City, Georgia, where he resided. Gresham falsely represented to potential investors that he consistently generated large investment returns by trading investor funds in off-exchange foreign currency contracts in the ForEx market. Over the life of the scheme, Gresham fraudulently obtained approximately $15.8 million in investor funds.
As also noted in the superseding indictment, Gresham specifically targeted members of the Christian faith as potential investors, knowing that many of these Christian investors were elderly and particularly vulnerable to his scheme. He induced Christians to give him funds for investment by telling them that his success in currency trading was a blessing and gift from God, which Gresham considered to be “his ministry.” He also persuaded Christian investors to give him funds by telling them that the investors could later use investment profits to further God’s works.
According to the factual resume filed in the case, Gresham falsely represented inflated profits to investors and represented to several investors that he had never suffered any losses in his currency trading. He also falsely represented to investors the financial condition of their investor accounts by sending monthly emails that included falsely inflated investment profits. Gresham also falsely represented to investors that funds he distributed to existing investors were actual returns on investment for that investor, when he knew some of those funds were actually funds he received from new investors.
The U.S. Postal Inspection Service was in charge of the investigation. Assistant U.S. Attorneys David Jarvis, J. Nicholas Bunch and Kate Pfeifle prosecuted.
DEA Agent’s Wife Charged with Providing False Statements, Writings to the GovernmentRead the Press Release
PITTSBURGH – A Jefferson Hills resident has been indicted by a federal grand jury in Pittsburgh on charges of false statements and false writings to the government, United States Attorney David J. Hickton announced today.
The three-count indictment named Kimberly Baldwin, 46, of Jefferson Hills, Pa.
According to indictment presented to the court, Kimberly Baldwin, the wife of a DEA Special Agent, fabricated a story about threats made to her and her family. She provided false oral statements as well as false writings to the DEA in support of the fabricated story.
The law provides for a maximum total sentence of 15 years in prison, a fine of $750,000 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 Robert S. Cessar is prosecuting this case on behalf of the government.
The Drug Enforcement Administration 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.
Charles City Woman Charged with Buying Firearms for FelonRead the Press Release
Wendi Patrie, age 44, from Charles City, Iowa, has been charged with committing four firearms offenses: two counts of making false statements in connection with buying firearms and two counts of transferring firearms to a felon. The charges are contained in an Indictment unsealed yesterday in United States District Court in Cedar Rapids.
The indictment charges Patrie with buying three firearms, one in 2010 and two in 2011, falsely claiming she was buying the firearms for herself when, in truth, she was purchasing the firearms for, and transferred the firearms to, her boyfriend and later husband, knowing he was a felon and could not legally possess firearms.If convicted, Patrie faces a possible maximum sentence of 40 years’ in prison, a $1 million fine, $400 in special assessments, and 14 years of supervised release following any imprisonment.
Patrie’s trial is scheduled for December 2, 2013.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Federal Bureau of Alcohol, Tobacco, Firearms and Explosive, the Iowa Division of Criminal Investigation, the Charles City Police Department, and the Floyd County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-cr-2025.
Tuesday 1 October 2013
York Man Filed False Tax Returns Claiming RefundsRead the Press Release
JOHNSTOWN, Pa. - A resident of York, Pa., pleaded guilty in federal court to charges of conspiracy to defraud the government and filing false claims with Internal Revenue Service, United States Attorney David J. Hickton announced today.
Wendell Parker, 31, pleaded guilty to eleven counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from April 2008 to Oct. 2010 Parker conspired to file 72 false and fictitious income tax returns claiming tax refunds totaling $210,581, and from Dec. 15, 2008, to May 26, 2010, he prepared and filed federal income tax returns claiming refunds knowing the claimant's address, wage information and withholding information was false and fictitious.
Judge Gibson scheduled sentencing for Feb. 20, 2014, at 11:00 a.m. The law provides for a total sentence of 60 years in prison, a fine of $2,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigation conducted the investigation that led to the prosecution of Parker.
United States Supreme Court Grants Certiorari in Criminal Case from West TennesseeRead the Press Release
Memphis, TN – This morning, the United States Supreme Court granted the petition of the
United States for a writ of certiorari in United States v. Castleman, a criminal case originating in
the Western District of Tennessee, announced U.S. Attorney Edward L. Stanton III.
In August 2009, a federal grand jury in Memphis returned a superseding indictment charging
James Castleman with two counts of possessing a firearm after having been convicted of a
misdemeanor crime of domestic violence, in violation of 18 U.S.C. § 922(g)(9). The district
court granted the defendant’s motion to dismiss these charges in April 2010, on the basis that
defendant’s prior Tennessee domestic assault conviction was not “a misdemeanor crime of
domestic violence,” as that term is defined in federal law.
The United States appealed, and in September 2012 the U.S. Court of Appeals for the Sixth
Circuit affirmed the district court’s ruling, with each Judge of the three-member panel writing
separately. The government sought rehearing by the en banc Court of Appeals, but the court
declined to reconsider its decision.
In May 2013, the United States filed a petition for a writ of certiorari from the Supreme Court.
The Court granted that petition today and will consider the case during its 2013 term, which
begins this Monday, October 7, 2013.
Assistant U.S. Attorney Daniel French and Criminal Appellate Chief Kevin G. Ritz represented
the United States in the lower courts. The Office of the Solicitor General is representing the
government in the Supreme Court.U.S. Attorney Announces Government Shutdown's Effects on Office OperationsRead the Press Release
LAFAYETTE/SHREVEPORT/MONROE/ALEXANDRIA/LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that operations of the Office of the U.S. Attorney for the Western District of Louisiana, all divisions - Lafayette, Shreveport, Monroe, Alexandria and Lake Charles 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 updated 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 www.justice.gov/usao/law.
Sunrise Man Pleads Guilty to $20 Million Payroll Tax 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, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announce that defendant Sonny Austin Ramdeo, 35, of Sunrise, pled guilty in connection with a $20 million federal payroll tax fraud scheme to two counts of fraud by use of wires and money laundering, in violation of Title 18, United States Code, Sections 1343 and 1956(a)(1)(B)(i).
According to court documents, from as early as 2005, defendant Ramdeo was employed as the payroll supervisor at Promise Healthcare, Inc. (Promise Healthcare) and Success Healthcare Group (Success Healthcare), both of which owned and operated hospital facilities throughout the United States. As payroll supervisor for these two companies, Ramdeo was responsible for overseeing the payment of bi-weekly wages and related payroll taxes for more than 3,500 employees.
To execute his scheme, Ramdeo allegedly incorporated PayServ Tax Inc., and thereafter represented to officers and employees of Promise Healthcare that PayServ Tax would handle the transfer of local, state and federal payroll taxes to the proper agencies on behalf of Promise Healthcare and Success Healthcare. In fact, however, Ramdeo kept the monies paid by Promise and Success Healthcare to PayServ and used the funds to open and operate EZ Jet Airlines between Guyana and New York.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Ellen L. Cohen.
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.
Pittsburgh Man Charged in Multiple Fraud SchemesRead the Press Release
PITTSBURGH - A Pittsburgh resident has been indicted on charges of bank embezzlement, bank fraud and mail fraud United States Attorney David J. Hickton announced today.
Joseph Graziano, Jr., 28, has been indicted on one count of bank embezzlement, seven counts of bank fraud and six counts of mail fraud.
According to the indictment presented to the court, from May 12, 2008 through March 25, 2011, the Graziano was employed by Bank of New York Mellon as a Corporate Trust Administrator. In this position, he had the access and ability to wire funds in and out of accounts held by Bank of New York Mellon's corporate trust customers. Graziano used this access to embezzle $2,441,294.35 from Bank of New York Mellon by wiring funds from the corporate trust accounts into his own bank accounts at Citizens Bank.
In the time before and after the defendant was employed by Bank of New York Mellon, he also engaged in schemes to defraud five other banks including Dollar Bank, First Niagara Bank, First Commonwealth Bank, Ameriserv Financial Bank and PNC Bank. Defendant submitted fraudulent loan documents to induce the banks to extend credit to him. With respect to the loans from First Commonwealth Bank and Ameriserv Financial Bank, defendant pledged as collateral for the loans two luxury vehicles, providing the banks with fraudulent duplicate titles to the vehicles.
Following the bank embezzlement and the bank frauds, the defendant began engaging in a new and separate scheme to defraud through the online marketplace www.ebay.com. Defendant defrauded eBay buyers by offering personal electronics for sale on eBay. After the buyers submitted payment to the defendant's PayPal account, the defendant sent the buyers empty boxes, falsely claiming that the boxes' contents had been stolen during shipping.
The law provides for a maximum total sentence of 380 years in prison and a fine of $11,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation along with United States Postal Inspection Service and the Internal Revenue Service - Criminal Investigations conducted the investigation that led to the prosecution of Graziano.
Nelson County Drug Store Owner Sentenced to 27 Months for Health Care Fraud and Wire FraudRead the Press Release
– Crume Drug Store owner billed private insurance companies and Medicare Part D for fraudulent prescriptions, causing a combined loss of $242,963.04
LOUISVILLE, Ky. – The owner of Crume Drug Store, located in Nelson County, Kentucky, was sentenced in federal court today, by Chief Judge Joseph McKinley, to 27 months in prison, followed by a two year term of supervised release, and was ordered to pay $242,963.04 in restitution, announced David J. Hale, United States Attorney for the Western District of Kentucky. There is no parole in the federal system.
Timothy Lee Sizemore, age 37, of Bardstown, Kentucky, was charged by Information on February 27, 2013 with one count of health care fraud and one count of wire fraud. According to information presented in court, Sizemore purchased Crume Drug Store in March 2010, then, between April 2010 and February 2012, Sizemore devised and executed a scheme to defraud Anthem and other private health insurance providers, and Medicare Part D.
Sizemore pleaded guilty as charged on March 20, 2013. Sizemore admitted that he created false names and placed them under his own Anthem policy number, created fraudulent prescriptions under those names, and billed Anthem for those fraudulent prescriptions, even though they were never actually filled. Also, Sizemore created fraudulent prescriptions using the names of Crume customers and local doctors, and billed the customers’ private insurance companies for those prescriptions even though they were never filled. During the same time period, Sizemore admitted that he used the names of Crume customers and local doctors to create fraudulent prescriptions and billed Medicare Part D for those fraudulent prescriptions, which were never filled. As part of his plea agreement, Sizemore paid full restitution of $242,963.04 prior to his sentencing hearing.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the Federal Bureau of Investigation (FBI) and U.S. Department of Health and Human Services, Office of the Inspector General.
Michigan Man sentenced to over 10 years in prison for distributing Child PornographyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Michigan man was sentenced in federal court in Anchorage for distributing child pornography.
Mark Harry Smith, 41, from Saginaw, Michigan, was sentenced Friday, September 27, 2013, by U.S. District Court Judge Sharron Gleason, to 126 months in prison.
According to Assistant U.S. Attorney Kyle G. French, Smith possessed and exchanged via email accounts hundreds of videos and images depicting children being sexually abused, including infants and toddlers. Smith’s collection reflected the international scope of child sex abuse that feeds the demand created by Smith and others who collect and trade child pornography – identified victims were abused in Switzerland, Germany, France, Belgium, the United Kingdom, the Netherlands, Italy, the Republic of Moldova, the Ukraine, Canada, Denmark, Sweden, Australia, Brazil, Paraguay, Russia, Ireland, Norway, and the United States (28 states).
At Smith’s sentencing, Judge Gleason noted the seriousness of the offenses, the ongoing harm to the victimized children, and the need to protect the public from this kind of conduct. After serving his 126 months in prison, Judge Gleason ordered Smith to serve 15 years of supervised release, perform 600 hours of community service, and be required to comply with special conditions, including participating in sex offender assessment and treatment, and registering as a sex offender.
U.S. Attorney Karen Loeffler stated that “The possession, receipt, transportation, and distribution of child pornography perpetuates the harm to victims depicted in the images, validates and normalizes the sexual exploitation of children, and fuels a market, thereby leading to further production of images. “Smith’s participation in email child pornography groups, for example, involves membership and informal communications which inherently validate, normalize, and encourage child sex sexual abuse by other individuals.”
AUSA Kyle French added that “Despite tremendous effort expended across numerous fronts, in the age of the Internet, we are losing the war to protect children from sexual exploitation. The volume and market for child pornography continues to exponentially grow while its victims are becoming younger and more sadistically abused. It is becoming common to discover child pornography collections which include videos and images of infants and toddlers being sexually abused.”
Every Internet user can help combat the problem by choosing to report child pornography related links, emails, media, and other materials. Most important, by simply taking the time to report, you may rescue a child from ongoing sexual abuse. If you encounter child pornography online, you can report its location to your Internet service provider, local or state law enforcement, the FBI or Department of Homeland Security office, or online via the National Center for Missing and Exploited Children’s (NCMEC) website at cybertipline.com. NCMEC will forward your report to the appropriate investigative agency for follow-up.
This case was initiated as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse which was launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood combines federal, state and local resources to better identify, apprehend and prosecute individuals, who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Ms. Loeffler commends Immigration and Customs Enforcement’s Homeland Security Investigations for the investigation of this case.
Lacey, Washington Repeat Offender Sentenced to Six Years in Prison for Oxycodone TraffickingRead the Press Release
A Lacey, Washington man with prior felony drug convictions, was sentenced October 1, 2013 to six years in prison and five years of supervised release for possession of oxycodone with intent to distribute and structuring financial transactions, announced U.S. Attorney Jenny A. Durkan. G.B. BROWN, 54, was arrested on June 9, 2011, following a South Sound Gang Task Force investigation. He was convicted following a jury trial on May 14, 2013. U.S. District Judge Benjamin H. Settle imposed the sentence.
According to records filed in the case, BROWN came to the attention of law enforcement as part of an investigation into oxycodone trafficking from California to the south Puget Sound region. Law enforcement was aware of multiple packages of oxycodone pills that were shipped to BROWN’s Lacey address. Prior to his arrest BROWN sought to purchase a large quantity of oxycodone pills from a person working with law enforcement. He made multiple withdrawals of large amounts of cash from his bank accounts on consecutive days in amounts just under the $10,000 reporting requirement, which he consolidated and used to pay for the $45,000 worth of oxycodone pills in his possession at the time of his arrest. Those withdrawals were the basis for the structuring count of conviction, as well as the court-ordered forfeiture of the remaining $49,300 in one of those bank accounts.
In asking for a lengthy prison term, prosecutors wrote to the court about the impact of oxycodone abuse on the community. “…The dependency created by the drug, and supported by Brown and drug dealers like him, often haunts users for the rest of their lives. Moreover, illicit drug users, themselves victims of their dealer’s greed, often end up then victimizing other people -- usually either by robbing or stealing, or by selling drugs themselves -- in order to fund their expensive but all-important drug habits. Not only is the health of the individual drug users harmed, but the health and public safety of the entire community is put at risk in many ways. Increased crime, some of it violent, either to support drug habits or simply committed by those high on drugs. Persons high on drugs getting into vehicular accidents or causing injuries or damage to property and lives in other ways,” prosecutors wrote in their sentencing memo.
The case was investigated by the South Sound Gang Task Force and was prosecuted by Assistant United States Attorney Gregory A. Gruber.
Johnstown Man Sentenced to 30 Years in Prison for Producing Child PornographyRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa, has been sentenced in federal court to 360 months in prison and supervised release for life on his conviction of producing child pornography, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Stephen J. Goniea, 47.
According to information presented to the court, from 2008 to Aug. 2011 Goniea produced visual depictions of a minor engaged in sexually explicit conduct using materials that had been mailed, shipped or transported in interstate or foreign commerce.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Southwest Computer Crime Task Force of the Pennsylvania State Police for the investigation leading to the successful prosecution of Goniea.
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 Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Illinois Resident Convicted of Insider TradingRead the Press Release
SAN FRANCISCO – On Monday, September 30, 2013, a federal jury convicted Bassam Yacoub Salman of one count of conspiracy to commit securities fraud, in violation of 18 U.S.C. § 371, and four counts of securities fraud or insider trading, in violation of 15 U.S.C. §§ 78j(b) and 78ff, United States Attorney Melinda Haag announced.
The jury found that between 2004 and 2007, Salman, 54, of Orland Park, Illinois, engaged in securities fraud and insider trading relating to securities issued by United Surgical Partners International, Inc. (USPI) and Biosite Incorporated (BSTE). The guilty verdict followed a two week jury trial before the Honorable Edward M. Chen, U.S. District Court Judge.
The charges against Salman were part of a larger, $5.3 million, insider trading scheme first charged in 2009 against Maher Fayez Kara, of San Carlos, Calif., a former investment banker at Citigroup Global Markets Inc. in New York, and Maher Kara’s brother, Mounir Fayez Kara, also known as Michael F. Kara, of Walnut Creek, Calif. In July 2011, Maher Kara and Michael Kara both pled guilty to conspiracy and securities fraud charges and began cooperating with the government.
Evidence at trial showed that, on or about March 23, 2007, Salman, trading in an account owned by his brother-in-law, Karim Bayyouk, caused the purchase of approximately $100,000 in Biosite call options. Salman obtained the inside information about Biosite from Michael Kara, who had first obtained it from his brother, Maher Kara, who worked at Citigroup. Two days later, on March 25, 2007, Biosite announced it was merging with another company. After the merger announcement, Salman sold the options and realized a profit of approximately $947,922. Earlier, in the fall of 2006, evidence at trial showed that Salman purchased securities in United Surgical Partners International, Inc. using inside information obtained from Michael Kara and, initially, from Maher Kara.
On September 4, 2013, in a separate trial, another federal jury convicted Bayyouk, 49, of Livonia, Michigan, of obstructing and impeding an investigation by the Securities and Exchange Commission (“SEC”) into securities fraud and insider trading relating to Biosite Incorporated, in violation of 18 U.S.C. § 1505, arising from a telephone interview with the SEC on or about May 31, 2007.
Salman’s sentencing hearing is scheduled for January 15, 2014, at 2:30 p.m. before Judge Edward M. Chen in San Francisco. The maximum statutory penalty for a violation of 18 U.S.C. § 371 is a sentence of five years and a fine of $250,000. The maximum statutory penalty for a violation of 15 U.S.C. §§ 78j(b) and 78ff is a sentence of twenty (20) years and a fine of $5,000,000. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Adam A. Reeves and Katherine B. Dowling are the Assistant U.S. Attorneys prosecuting the case with the assistance of Maryam Beros, Rayneisha Booth, and Patricia Mahoney. The prosecution is the result of a lengthy investigation by the FBI with substantial assistance from the Division of Enforcement of the SEC’s San Francisco Regional Office.
(Salman unsealed indictment )
Henderson Man Sentenced for Retaliating Against A Federal WitnessRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court yesterday, Senior United States District Judge James. C. Fox sentenced WAYNEMONDEMOUNT BULLOCK, 25, of Henderson, North Carolina, to 92 months imprisonment followed by 3 years of supervised release. On May 2, 2013 a federal jury convicted BULLOCK for retaliating against a federal witness in violation of Title 18, United States Code, Section 1513(b)(1).
According to the investigation, on October 5, 2012, BULLOCK participated in an assault on a federal witness who had previously testified before Senior Judge James C. Fox. BULLOCK and a co-defendant approached the federal witness at a convenience store in Henderson, NC, accused the witness of being a “snitch” and proceeded to beat the witness. BULLOCK was recently released from the North Carolina Department of Corrections prior to assaulting the victim.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Henderson Police Department. Assistant United States Attorney, S. Katherine Burnette prosecuted the case.
Grand Prairie Man Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
Defendant Admits Exchanging Sexually Explicit Photos with a Minor Female
DALLAS — Aaron Garcia, 21, of Grand Prairie, Texas, appeared in federal court this morning and pleaded guilty, before U.S. Magistrate Judge Paul D. Stickney, to an Information charging one count of receipt of child pornography. He faces a maximum statutory sentence of not less than five or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Judge Stickney remanded Garcia into custody. Sentencing is set for January 13, 2014, before U.S. District Judge David C. Godbey. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, the investigation began as a result of a cyber-tip to law enforcement indicating that in September 2012, a minor girl, “Jane Doe,” began using an app on her cell phone to have sexual conversations with an adult male. The conversations included solicitations from both the adult male and Jane Doe to meet for sex. Jane Doe identified herself as a 14-year-old, although she was actually 13. The male also solicited nude photos of Jane Doe, which she sent. He sent her two sexually explicit images of himself.
An analysis of Garcia’s iPhone by the North Texas Regional Computer Forensics Lab revealed that it contained more than 40 images of child pornography, not including the images sent by Jane Doe.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the Grand Prairie Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Former Prison Inmate who Ran Scam from State Penitentiary Pleads Guilty to Tax and Weapons ChargesRead the Press Release
A former Washington State Prison inmate who led a tax fraud scheme from prison, pleaded guilty October 1, 2013 to eleven counts of tax fraud and three counts of illegal possession of firearms, explosives and a ballistic vest, announced U.S. Attorney Jenny A. Durkan. KENNETH RANDLE DOOR, 44, was indicted on the tax charges along with three other co-conspirators in April 2012. At the time of the tax fraud indictment, DOOR was already in custody on the weapons charges. Sentencing on the tax charges is scheduled before U.S. District Judge Benjamin Settle on December 16, 2013. DOOR will be sentenced on the illegal weapons possession charges on December 12, 2013. At that sentencing hearing before U.S. District Judge Ronald B. Leighton, prosecutors will argue that DOOR is an Armed Career Criminal and therefore should be sentenced at or above the mandatory minimum of 15 years in prison.
According to the indictment, in 2008 and 2009, the defendants conspired to file fake tax returns using the names and Social Security numbers of prison inmates to claim fraudulent refunds. DOOR was incarcerated at the Washington State Penitentiary in Walla Walla. Other conspirators were living in Tacoma and Puyallup. Using the internet the conspirators identified companies that had declared bankruptcy and had recently closed. The conspirators created fake W-2 forms indicating wages paid and taxes withheld from the individuals whose identities they used. Virtually all of these individuals were prison inmates at the time who had not been employed by the now defunct companies. The conspirators filed at least 31 false tax returns, attempting to obtain more than $145,000 in refunds. The conspirators obtained nearly $72,000 in fraudulent tax refunds.
DOOR’s co-conspirators in the tax scheme have been sentenced to terms ranging from eight months to 33 months in prison.
The tax case was investigated by Internal Revenue Service Criminal Investigation (IRS-CI). The weapons case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The cases are being prosecuted by Assistant United States Attorneys Steven Masada and Norman Barbosa.
Former NFL Player Pleads Guilty to Drug and Gun ChargesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Robert Cedrick Baker, III, age 37, of Gainesville, Florida entered a plea of guilty today to possession with intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime. Mr. Baker entered his plea before the Honorable Hugh Lawson, United States District Judge in Valdosta, Georgia.
Mr. Baker, a former player in the National Football League, was stopped by the Lowndes County Sheriff’s Office in the evening of January 20, 2013 on Georgia Highway 401 for a traffic violation. A consensual search of his car revealed that Mr. Baker was in possession of 59.5 grams of heroin and a Smith & Wesson, 9mm semi-automatic pistol. As part of his plea of guilty, Mr. Baker admitted that he possessed the heroin for distribution, and he was carrying the 9mm semi-automatic pistol in furtherance of his drug trafficking crime.
“Mr. Baker made a terrible mistake when he chose to traffic illegal drugs, and particularly when he brought a gun along to help him do so,” said U.S. Attorney Michael Moore. “He will have a long time to reflect on that mistake in federal prison.”
The maximum penalty for possession with intent to distribute heroin is twenty (20) years in prison and a fine of $1,000,000.00, or both, followed by a term of supervised release of at least three (3) years. Possession of a firearm in furtherance of a drug trafficking crime carries a mandatory minimum term of imprisonment of five (5) years, up to a maximum term of life in prison, a fine of $250,000.00, or both, followed by a term of supervised release of five (5) years. By statute, the term of imprisonment imposed for possession of a firearm in furtherance of a drug trafficking crime will run consecutive to the term of imprisonment imposed for possession with intent to distribute heroin.
The case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Lowndes County Sheriff’s Office. Assistant United States Attorney Peter Leary is handling the prosecution for the Government.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Former Grandview Woman Pleads Guilty to $158,000 Scheme for False Tax RefundsRead the Press Release
October 1, 2013KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Grandview, Mo., woman pleaded guilty in federal court today to filing a false claim for a federal tax refund as part of a nearly $158,000 scheme.
Kelsey R. Jones, 34, of Houston, Texas (formerly of Grandview), pleaded guilty before U.S. District Judge Greg Kays to making a false claim.
By pleading guilty today, Jones admitted that she filed 36 false individual income tax returns on behalf of herself and others, claiming approximately $157,998 in refunds, from February 2009 to January 2011.
Jones recruited individuals to file federal income tax returns under their own names. Jones created false and fictitious inflated income and revenue information for the individuals. Jones then used the false information to prepare and file fraudulent federal tax returns electronically with the IRS, which often claimed tax credits, such as the earned income tax credit, to which the individuals were not entitled.
Jones often had a portion of the fraudulent refunds – totaling $17,292 – direct deposited into one of her bank accounts, sometimes without the taxpayers’ knowledge.
Under federal statutes, Jones is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jess Michaelsen. It was investigated by IRS-Criminal Investigation.
Bookkeeper Sentenced for Filing False Tax ReturnRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigations (IRS-CI), announce that Edda Obando, 65, of Miami, Florida, was sentenced on September 30, 2013 based on her earlier guilty plea to making and subscribing a false tax return, in violation of Title 26, United States Code, Section 7206(1).
According to the allegations of the charging instrument, Obando, who served as a bookkeeper, prepared a false and fraudulent tax return by significantly under-reporting her income on her own personal tax return.
Obando was sentenced by Chief U.S. District Judge Frederico A. Moreno to forty-five days in prison, followed by five years of probation, with special conditions to include, inter alia, cooperation with the IRS in determining and paying tax liabilities. Further, Obando was sentenced to pay restitution in the amount of $72,212.68 and $100 special assessment.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Special Counsel to the U.S. Attorney, Norman O. Hemming, III.
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.
Baldwin Twp. Woman Sentenced to 33 Months in Prison for Making, Dealing Counterfeit CashRead the Press Release
PITTSBURGH - A Pittsburgh woman has been sentenced in federal court to 33 months in prison, three years of supervised release and payment of restitution on her conviction of conspiracy to make counterfeit United States currency, making counterfeit United States currency, and dealing in counterfeit United States currency, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Danielle L. Jones, 40, as the sole defendant.
According to information presented to the court, Jones was charged with conspiracy, the making of counterfeit currency, and the dealing in counterfeit currency during the period June 21, 2012, through June 24, 2012.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation leading to the successful prosecution of Jones.
27 Individuals Charged in A Superseding Indictment for Drug TraffickingRead the Press Release
Defendants face a narcotics forfeiture allegation of 100 million dollarsSAN JUAN, Puerto Rico – On September 18, 2013, a federal grand jury in the District of Puerto Rico returned a superseding indictment against 27 defendants charged with conspiracy to import cocaine into Puerto Rico from the Dominican Republic, conspiracy to possess with intent to distribute controlled substances and conspiracy to commit money laundering, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigations and the Puerto Rico Police Department were in charge of the investigation.
The indictment alleges that beginning in March 2005 until in or about July 2010, the defendants conspired to possess with intent to distribute controlled substances The object of the conspiracy was the wholesale distribution of controlled substances at multiple drug distribution points in the northern and central part of Puerto Rico, and further transshipment to the Continental United States; all for significant financial gain and profit.
Defendant Edgar Collazo-Rivera, a businessman from Bayamón, Puerto Rico, is facing two charges of conspiracy to commit money laundering and international money laundering. The objects of the money laundering conspiracy were: to conceal and disguise drug trafficking proceeds derived by co-conspirators, known and unknown to the Grand Jury; to use drug trafficking proceeds to promote the drug trafficking activities of co-conspirators; and to avoid any reporting requirements of drug trafficking proceeds. It was a manner and means of the conspiracy that the defendant and his co-conspirators would arrange to send bulk shipments of narcotics proceeds to the Dominican Republic, using Collazo-Rivera’s privately owned yachts to transport the U.S. Currency.
The International money laundering count charges Collazo-Rivera with the transportation of monetary instruments or funds, to wit: approximately eight-million dollars ($8,000,000.00) in United States currency from Puerto Rico to the Dominican Republic, knowing that the funds involved in the transportation represented the proceeds of some form of unlawful activity and that such transportation was designed in whole or in part to conceal or disguise the nature, location, source, ownership and control of the proceeds of the specified unlawful activity, to wit, drug trafficking.
The defendants are: Ramón L. Molina-Quintero, aka “Carnal;” José Molina-Quintero, aka “Manolo;” Anthony Declet- Rivera, aka “Chio;” Ángel Felix Esquilin, aka “ Esquilin;” Ismael Luna-Archeval, aka “Maelo;” Carlos Barreto-Bermúdez; Jovanni Varestin-Cruz, aka “Jova;” Alfonso Toledo-Jiménez, aka “Cabito;” Luis Fonseca-Sànchez, aka “Pollo;” Joe Corvette-Gonzàlez, aka “ Joe Cor;” Antonio Rivera-Rodríguez, aka “Prince;” Kermitt Ramos-Acevedo, aka “ Duco;” Hector L. Díaz-Torres, aka “Menor Jodiendita;” Joel Díaz-Torres, aka “Menor Roster;” Carlos Adorno-Cruz, aka “Gallego;” Rocky Martínez-Negrón, aka “Rocky;” Jorge L. Díaz-Casillas, aka “Roquero;” Rolando Melon-Baerga; Luis A. Cedeño-Burgos, aka “Cuco;” Jayson Berríos-Rodríguez, aka “Jayson;” Madelyn Morales-Pagàn, aka “La Loca;” Ryan Colón-Ojeda, aka “Ryan;” Edgar Collazo-Rivera; Carlos Raymundi-Hernàndez; Juan Carlos Fontanez, aka “Papun;” Felix Colón-Peña; and Jean Carlos Bracero-Cotto, aka “Janco.”
“This case demonstrates, once again, the Justice Department’s continued commitment to hold leaders of major drug trafficking cartels responsible for importing narcotics into Puerto Rico and the continental United States – no matter where they conduct their illegal business. Cartel members and their associates will be brought to justice for the damage they inflict on both sides of the border,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
The case is being prosecuted by Assistant U.S. Attorney Olga Castellón. If convicted, the defendants could face from 10 years up to life in prison. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
Monday 30 September 2013
Wendell Lester Wolf Black, Sr. Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney(s Office announced that during a federal court session in Helena, on September 30, 2013, before U.S. District Judge Sam E. Haddon, WENDELL LESTER WOLF BLACK, SR., a 46-year-old resident of Crow Agency and an enrolled member of the Crow Tribe, pled guilty to assault with a dangerous weapon and assault resulting in serious bodily injury. Sentencing has been set for January 6, 2014. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On June 18, 2012, WOLF BLACK and his sons drove to the victim's house located at Dunmore, which is within the exterior boundaries of the Crow Indian Reservation. When they arrived at the house, they knocked on the door and the victim came outside. The victim was unaware that there were any problems between him and the WOLF BLACKs. WOLF BLACK, however, believed that the victim was responsible for a prior assault on his son that caused disabling injuries.
While the victim was outside of his house, he asked WOLF BLACK for a cigarette and followed him out to WOLF BLACK's truck. At that point, WOLF BLACK hit the victim numerous times with a crow bar. He was hit in the leg, back, and head, and went down to the ground unable to defend himself against the attack. He heard one of WOLF BLACK's sons yell, "This is for my brother," and he heard WOLF BLACK say, "This is for fighting my son."
The victim sought medical treatment for his injuries. The victim suffered multiple broken bones and a collapsed lung. These injuries met the definition of serious bodily injury according to the treating physician.
WOLF BLACK faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release on each charge.
The investigation was conducted by the Bureau of Indian Affairs.
Venice Man Sentenced for Firearm OffenseRead the Press Release
Justin J. Harper, 24, of Venice, Illinois, was sentenced in federal district court on September 30, 2013, to 100 months in prison, to be followed by three years supervised release, a $100 special assessment, and a $400 fine, for unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Court proceedings revealed that on October 5, 2011, law enforcement officers executed a search warrant of a rear bedroom at a home in Venice, Illinois. Upon entering the residence, officers observed Harper exiting the bedroom. A search of the bedroom recovered a 9mm semi-automatic pistol from underneath the bed.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant United States Attorney Daniel T. Kapsak.
VA Worker Sentenced to Three Years Probation for Faking Active Duty PaperworkRead the Press Release
PITTSBURGH - A resident of Washington County, Pennsylvania, was sentenced in federal court to three years probation and $14,164.91 in restitution on his conviction of theft of government property and making a false statement, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Richard A. Ward, 42.
According to the information presented to the Court, Ward, while a VA Pittsburgh Healthcare System employee, submitted to the VA a false and fictitious Special Order drawn on the authority of the Department of the Air Force, Pennsylvania Air National Guard 171st Air Refueling Wing. The false Special Order indicated that Ward, who is also a Pennsylvania Air National Guardsman, was deployed for active duty. The VA placed Ward in a special pay status for VA employees who are activated for military duty. The pay and benefits wrongfully obtained by Ward equaled approximately $14,164.91.
Prior to sentencing, the Court took into consideration Ward’s lack of criminal history and his early acceptance of responsibility.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
The United States Department of Veterans Affairs, Office of Inspector General, and the United States Department of Veterans Affairs Police, conducted the successful investigation leading to the conviction and sentence in this case.
United States Forfeits $1,552,588.62 Obtained from the Sale of Daytona Beach HotelRead the Press Release
Orlando, Florida - Acting United States Attorney A. Lee Bentley, III announces the forfeiture of $1,552,588.62 obtained from the sale of the Desert Inn Hotel in Daytona Beach, Florida. In July 2011, Dennis Brian Devlin, of Daytona Beach, was sentenced to 15 years in federal prison for sexually exploiting a minor. As part of Devlin’s sentence, the court ordered Devlin to forfeit his interest in the Desert Inn because it was used to facilitate the crimes for which he was convicted.
The titled owner of the Desert Inn, Deslin Hotels, Inc., filed a claim to contest the forfeiture of the hotel because it alleged that Devlin did not have an interest in the hotel. After several months of litigation, a settlement was reached wherein Deslin Hotels, Inc. conceded to the forfeiture of $1,552,588.62, which represents Devlin’s interest in the proceeds obtained from the recent sale of the Desert Inn.
The 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 (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation. The forfeitures were handled by Assistant United States Attorney Nicole M. Andrejko.
Two New Jersey Investors Plead Guilty for Their Roles in Bid-rigging Schemes at Municipal Tax Lien AuctionsRead the Press Release
Two financial investors who purchased municipal tax liens pleaded guilty today for their roles in a conspiracy to rig bids at auctions conducted by New Jersey municipalities for the sale of those tax liens, the Department of Justice announced.
A felony charge was filed today in U.S. District Court for the District of New Jersey in Newark, against Robert U. Del Vecchio Sr., of Hawthorne, N.J. According to the charge, from in or about 2000 until approximately December 2008, Del Vecchio Sr. participated in a conspiracy to rig bids at auctions for the sale of municipal tax liens in New Jersey by agreeing to allocate among certain bidders which liens each would bid on. Additionally, a felony charge was filed today in the U.S. District Court for the District of New Jersey in Newark, against Michael Mastellone, of Cedar Knolls, N.J. for participating in a similar conspiracy from in or about 2000 until approximately February 2009. The department said that Del Vecchio Sr. and Mastellone proceeded to submit bids in accordance with the agreements and purchased tax liens at collusive and non-competitive interest rates.
“By conspiring to rig the bids of municipal tax liens, the conspirators profited at the expense of those already struggling financially,” said Scott D. Hammond, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “Protecting Americans from these types of bid-rigging schemes remains a high priority for the division.”
The department said the primary purpose of the conspiracy was to suppress and restrain competition in order to obtain selected municipal tax liens offered at public auctions at non-competitive interest rates. When the owner of real property fails to pay taxes on that property, the municipality in which the property is located may attach a lien for the amount of the unpaid taxes. If the taxes remain unpaid after a waiting period, the lien may be sold at auction. State law requires that investors bid on the interest rate delinquent property owners will pay upon redemption. By law, the bid opens at 18 percent interest and, through a competitive bidding process, can be driven down to zero percent. If a lien remains unpaid after a certain period of time, the investor who purchased the lien may begin foreclosure proceedings against the property to which the lien is attached.
According to the court documents, Del Vecchio Sr. and Mastellone were involved in the conspiracy with others not to bid against one another at municipal tax lien auctions in New Jersey. Since the conspiracy permitted the conspirators to purchase tax liens with limited competition, each conspirator was able to obtain liens which earned a higher interest rate. Property owners were therefore made to pay higher interest on their tax debts than they would have paid had their liens been purchased in open and honest competition, the department said.
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act violation may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than the $1 million statutory maximum.
Today’s pleas are the 13th and 14th guilty pleas resulting from an ongoing investigation into bid rigging or fraud related to municipal tax lien auctions. Nine individuals – Isadore H. May, Richard J. Pisciotta Jr., William A. Collins, Robert W. Stein, David M. Farber, Robert E. Rothman, Stephen E. Hruby, David Butler and Norman T. Remick – and three companies – DSBD LLC, Crusader Servicing Corp. and Mercer S.M.E. Inc. – have previously pleaded guilty as part of this investigation.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.This ongoing investigation is being conducted by the Antitrust Division’s New York Office and the FBI’s Atlantic City, N.J., office. Anyone with information concerning bid rigging or fraud related to municipal tax lien auctions should contact the Antitrust Division’s New York Office at 212-335-8000, visit www.justice.gov/atr/contact/newcase.htm or contact the Atlantic City Resident Agency of the FBI at 609-677-6400.
Two Individuals Convicted and One Sentenced in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
CLARKSBURG, WEST VIRGINIA – Two individuals entered pleas and one individual sentenced by Magistrate Judge John S. Kaull, according to United States Attorney William J. Ihlenfeld, II.
LORETTA MEREDITH, age 58, of Jamestown, New York, and formerly of Fairmont, West Virginia, entered a plea of guilty to “Conspiracy to Attempt to Obstruct Justice” from January 28, 2013, to May 7, 2013, in the Braxton and Marion County areas. As part of her plea, MEREDITH will forfeit a Compaq laptop computer used to commit the offense of conviction. MEREDITH, who is free on bond pending sentencing, faces up to 20 years in prison. This case was prosecuted by Criminal Chief Shawn A. Morgan and investigated by the United States Marshals Service.
FRANKLIN MOORE, age 43, of Procious, West Virginia, entered a plea of guilty to “Felon in Possession of a Firearm” in Taylor County. MOORE, who is in custody pending sentencing, faces up to 10 years in prison. This case was prosecuted by Assistant U.S. Attorney Zelda E. Welsey and investigated by the Grafton Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
DEANTHONY PARKER, age 30, an inmate at USP Hazelton entered a plea of guilty to two counts of “Indecent Exposure” and was sentenced to 180 days imprisonment to run concurrently with his current 60-month sentence. This case was prosecuted by Assistant United States Attorney Brandon S. Flower and investigated by the Special Investigative Services Staff at USP Hazelton.
Two Grand Haven Men Plead Guilty to Theft of Firearms from Gun Stores in Ottawa and Muskegon CountiesRead the Press Release
GRAND RAPIDS, MICHIGAN – Muskegon County Prosecutor D.J. Hilson and Ottawa County Prosecutor Ronald J. Frantz joined U.S. Attorney Patrick Miles in announcing today that Joseph Jerry Sweet, age 33, and Ronald Patrick Cook, age 27, both from the Grand Haven area, pled guilty to two counts of stealing firearms from Federal Firearms Licensees. The defendants face up to ten years in prison on each of the two counts of conviction.
Sometime during the night on June 27, 2013, the two defendants broke into the Renegade River store in Spring Lake, Michigan, stealing eight firearms. On July 13, 2013, the two broke into the Grasmeyer Brothers Gun & Supply Shop in Dalton Township, Michigan, at approximately 12:30 a.m., stealing 24 firearms, including twenty handguns and four rifles. Cook admitted as part of his plea and in an interview with law enforcement that the two intended to traffick the firearms and that they exchanged some of the weapons for heroin and cash on the street. Federal law prohibits the theft of firearms from Federal Firearms Licensees. Both stores are federally-licensed firearms dealers.
Cook was previously convicted five times for felonies, including a breaking and entering conviction in 2007 and an assault with a dangerous weapon conviction in 2011. Sweet is a three-time convicted felon, having been convicted of breaking and entering in 2004, larceny in 2005 and felony drunk driving in 2008. Federal charges of possessing firearms as convicted felons will be dismissed at sentencing, given the guilty pleas to the theft charges.
This case resulted from a coordinated investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Muskegon County Sheriff’s Department, the Grand Haven Public Safety Department, the Spring Lake/Ferrysburg Police Department, and the Michigan State Police-West Michigan Enforcement Team (WEMET).
U.S. Attorney Patrick Miles said, “Stealing firearms is illegal. Intending to sell stolen firearms is both illegal and dangerous. These defendants put people’s lives at risk by increasing the number illegal guns in the hands of criminals.”
Sonja A. Everitt, Resident Agent in Charge, Grand Rapids ATF, stated, “This investigation is an example of ATF’s commitment and determination in making our communities safe. ATF’s Frontline strategy is our business model that addresses gun trafficking crime. These accomplishments could not have been achieved without the collaboration and hard work of ATF, Muskegon County Sheriff’s Office, Ottawa County Sheriff’s Office, Spring Lake Police Department, Grand Haven Department of Public Safety, and the United States Attorney’s Office.”
Muskegon County Prosecutor D.J. Hilson commented: “I appreciate working with the U.S. Attorney’s Office to help rid Muskegon County of the individuals who try to put stolen guns on our streets which only promotes violence. I look forward to continuing our strong partnership in making Muskegon County a safe place to work and live.”
Ottawa County Prosecutor Ron Frantz echoed the sentiment: “Once again our long-standing partnership between local and federal law enforcement has been successful in reaching across jurisdictional lines and bringing perpetrators to justice.”
The defendants will be sentenced by the Honorable Robert J. Jonker. A sentencing date has not yet been scheduled. It is expected to take place in approximately ninety days.
END
Tulsa Physician Charged with Producing Child Porn; Attempted to Meet Local Minor for SexRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Tulsa, Okla., physician was charged in federal court today with using a minor to produce child pornography.
Shelby Coleman, of Tulsa, was charged with using a minor to produce child pornography in a federal criminal complaint filed in the U.S. District Court in Springfield, Mo. Coleman is a medical doctor and partner of Tulsa Women’s Health Center.
According to an affidavit filed in support of today’s federal criminal complaint, Coleman communicated with a 16-year-old minor in Laclede County, Mo., identified as “N.D.,” via cell phone texts. Coleman and N.D. allegedly sent one another sexually explicit text messages and images. Coleman allegedly sent N.D. a sexually explicit video of himself. During some of the chats with N.D., Coleman allegedly stated that he wanted to drive around in his Porsche 911 with N.D. naked.
When N.D.’s father discovered the text messages, the affidavit says, he contacted the Missouri State Highway Patrol. A state trooper assumed the identity of N.D. for the purpose of the investigation.
On Friday, Sept. 27, 2013, Coleman texted N.D. and made arrangements to meet for sex at a Springfield, Mo., hotel. Coleman arrived at the hotel in his Porsche on Saturday, Sept. 28, 2013 and texted instructions for N.D. to come to his hotel room. Law enforcement officers confronted Coleman in his hotel room and, after questioning by officers, Coleman was arrested.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI, the Joplin, Mo., Police Department, the Southwest Missouri Cyber Crimes Task Force and the Missouri State Highway Patrol.
Three Martinsburg Residents ConvictedRead the Press Release
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MARTINSBURG, WEST VIRGINIA – Three Martinsburg, residents entered pleas of guilty before Magistrate Judge David A. Joel, according to United States Attorney William J. Ihlenfeld, II.
DANNY RAY TERRY, age 54, entered a plea of guilty to “Failure to Register and Update Registration as a Sex Offender” when he moved to West Virginia in 2011. TERRY, who is in custody pending sentencing, faces up to 10 years in prison. This case was prosecuted by Assistant U.S. Attorney Stephen L. Vogrin and investigated by the United States Marshals Service.
PERRY JOSEPH JENKINS, age 33, entered a plea of guilty to “Sale of Firearms to a Prohibited Person.” JENKINS, who is free on bond pending sentencing, faces up to 10 years in prison. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
ROGER DALE MILLER, age 66, entered a plea of guilty to “Felon in Possession of Firearms.” MILLER, who is free on bond pending sentencing, faces up to 10 years in prison. This case was investigated by the Berkeley County Sheriff’s Department and the ATF.
The JENKINS and MILLER cases were prosecuted by Assistant United States Attorney Paul T. Camilletti.
Sovereign Citizens Member Sentenced to Two Years in Prison for Mailing Fictitious Financial InstrumentRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Pinson man and member of an anti-government Sovereign Citizens group for mailing a fictitious financial instrument to pay off his home mortgage, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
U.S. District Judge Inge P. Johnson sentenced DONALD JOE BARBER, 64, for mailing a fictitious “bonded promissory note” to his mortgage servicing company on March 10, 2008, in a fraudulent effort to satisfy his mortgage. Barber presented the fraudulent $10 million note as if it were a valid financial instrument drawn on a secret U.S. government account. A federal jury convicted Barber on the fraud charge in April.
During today's hearing, Barber began reading a letter that his attorney had to complete for him when he was unable to continue, in which Barber told the court that he would stop promoting the beliefs of the Sovereign Citizen movement.
Judge Johnson ordered Barber to serve his two-year federal prison sentence after completing sentences he has in state court. Barber will remain on supervised release for two years following completion of his federal prison sentence.
"Members of the Sovereign Citizen movement embrace an unfounded, mythological history of the United States to claim that they live outside the authority of government and its laws," Vance said. "Standing on that twisted premise, they break the law using fraudulent financial instruments and false court claims to advance an agenda of domestic terrorism," she said.
"Mr. Barber attempted to use a redemption scheme to avoid paying just debts, and today he pays for those crimes. All citizens should be wary of individuals or groups, such as 'sovereign citizens', that claim they can inform you on secret bank accounts, and should report that activity to the FBI."The FBI describes members of the sovereign citizen movement in the U.S. as U.S. citizens who openly reject their citizenship status and claim to exist beyond the realm of government authority. Affiliates may use their self-appointed status to justify threats, violence or crime, including theft and fraud.
The FBI investigated the case, which Assistant U.S. Attorney Michael W. Whisonant Sr. prosecuted.
Somerset County Woman Conspired to Distribute CocaineRead the Press Release
JOHNSTOWN, Pa. - A resident of Tire Hill, Pa., pleaded guilty in federal court to a charge of conspiracy to distribute cocaine, United States Attorney David J. Hickton announced today.
Nichole L. Rankin, 25, 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 Nov. 2011 to July 18, 2012, Rankin conspired to distribute 500 grams or more of cocaine.
Judge Gibson scheduled sentencing for Feb. 18, 2014, at 10 a.m. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, 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.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Safe Streets Task Force initiative comprised of the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pa. Attorney General's Office, the Blair County Drug Task Force, the Cambria County Drug Task Force, the Somerset County Drug Task Force, the Roaring Spring Borough Police Dept. and the Paint Township Police Dept. conducted the investigation that led to the prosecution of Rankin.
Shiprock Man Sentenced to Seven Years for Using a Firearm in Connection with Robbery on the Navajo Indian ReservationRead the Press Release
ALBUQUERQUE – Eddie Shirley, 28, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this morning to seven years in federal prison for using and brandishing a firearm in relation to a crime of violence on the Navajo Indian Reservation. Shirley will be on supervised release for seven years after he completes his prison sentence.
Shirley was arrested in Dec. 2012, on a criminal complaint charging him and co-defendant, Jerrileta Singer, 32, with the armed robbery of a Sonic Drive-In Restaurant in Shiprock on Nov. 30, 2012. He has been in federal custody since his arrest. Singer subsequently was arrested in Jan. 2013. The two were then indicted and charged with (1) robbery, and (2) using and brandishing a firearm during and in relation to a crime of violence.
Shirley pleaded guilty on June 25, 2013 to Count 2 of the indictment and admitted using a firearm to rob the Sonic Drive-In in Shiprock on Nov. 30, 2012. Shirley acknowledged that a female participated in the robbery and that together they used force, intimidation and violence to take money from the restaurant’s employees.
On July 25, 2013, Singer pleaded guilty to Count 1, the robbery charge, of the indictment and admitted her role in robbing four individuals in the restaurant by use of force, violence and intimidation and taking money belonging to the restaurant. Singer faces a maximum of 15 years in prison when she is sentenced. Her sentencing hearing is scheduled for Oct. 28, 2103.
This case was investigated by Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
Seven Individuals Convicted on Drug ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
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ELKINS, WEST VIRGINIA — United States Attorney William J. Ihlenfeld, II announced that seven individuals recently entered pleas of guilty in Federal Court in Elkins before Magistrate Judge John S. Kaull.
CHRISTOPHER MICHAEL FISCHER, age 27, of Moorefield, West Virginia, entered a plea of guilty to “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” FISCHER, who is free on bond pending sentencing, faces up to 20 years in prison.
ROGER ALLEN SEE, age 23, of Lost River, West Virginia, entered a plea of guilty to “Possession of Material to be Used in the Manufacture of Methamphetamine.” SEE, who is free on bond pending sentencing, faces up to 10 years in prison.
This case was investigated by the Moorefield Police Department, the West Virginia State Police-Bureau of Criminal Investigations and the Hardy County Sheriff’s Department.
JAMES FRANKLIN FLUHARTY, age 23, of Bridgewater, Virginia, entered a plea of guilty to “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine.” FLUHARTY, who is free on bond pending sentencing, faces up to 20 years in prison. This case was investigated by uniformed officers of the West Virginia State Police and the West Virginia State Police BCI unit.
JACK FRANCIS GIBBINS, age 35, of Moorefield, entered a plea of guilty to “Distribution of Heroin.”
GIBBINS, who is free on bond pending sentencing, faces up to 20 years in prison. This case was investigated by the Hardy County Sheriff’s Department, the Wardensville Police Department and the Moorefield Police Department.
MEGAN ROHRBAUGH, age 23, of Rio, West Virginia, entered a plea of guilty to “Distribution of Oxycodone.” ROHRBAUGH, who is free on bond pending sentencing, faces up to 20 years in prison.
LEONARDO RAMOS RODRIGUEZ, age 35, of Petersburg, West Virginia, entered pleas of guilty to one count of “Distribution of Oxycodone” and one count of “Felon in Possession of a Firearm.” RODRIGUEZ, who is in custody pending sentencing, faces up to 20 years in prison on the drug charge and up to 10 years in prison on the firearms charge.
This case was investigated by the West Virginia State Police, US Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI), the Grant County Sheriff’s Department and the Grant County Probation Office.
TIMOTHY JUSTON WIMER, age 29, of Moorefield, entered a plea of guilty to one count of “Possession with Intent to Distribute Hydrocodone,” one count of “Possession with Intent to Distribute Oxycodone,” one count of “Possession with Intent to Distribute Methamphetamine,” and, one count of “Possession with Intent to Distribute Morphine.” WIMER, who is in custody pending sentencing, faces up to 10 years imprisonment on the hydrocodone charge and up to 20 years in prison on each of the other three drug charges.
This case was investigated by uniformed officers of the West Virginia State Police, the West Virginia State Police-BCI unit, ATF, the Moorefield Police Department, the Grant County Sheriff’s Department, the Hardy County Sheriff’s Department, the Petersburg Police Department and the Wardensville Police Department.
These cases were prosecuted by Assistant United States Attorney Stephen D. Warner.
Seattle Police and Community Partners Selected for $750,000 in Grants to Combat Human TraffickingRead the Press Release
The Seattle Police Department (SPD) and the International Rescue Committee in Seattle (IRC) will receive U.S. Justice Department grants in recognition of their leadership combatting human trafficking, announced U.S. Attorney Jenny A. Durkan. The two grants, $500,000 to SPD and $250,000 to IRC, will continue the work of the Washington Advisory Committee on Trafficking (WashACT). The funding pays for investigators working on human trafficking cases, and for services to victims of human trafficking.
“This funding will support vital work combatting human trafficking in western Washington, where strong partnerships have built a model program,” said U.S. Attorney Jenny A. Durkan. “The task force made up of federal, state and local law enforcement and community partners has helped more than 100 victims and prosecuted more than 60 cases of human trafficking.”
WashACT has served as a model for human trafficking task forces around the country due to the uniquely successful collaboration among this multi-disciplinary team. WashACT was one of three task forces chosen to develop and lead intensive immersion leadership training for other human trafficking task forces sponsored by the Department of Justice (DOJ). Further, WashACT leaders contributed significantly to DOJ’s Anti-Trafficking Task Force and are regularly called on to provide training and technical assistance on human trafficking and multi-disciplinary collaboration locally, nationally and internationally.
“We appreciate the assistance of this grant in that it will help further the efforts of the department and others in fighting human trafficking. Ultimately, it’s about making the victims whole again,” said Seattle Police Chief Jim Pugel.
“Nothing is more important in combating human trafficking than providing victims and survivors with the support they need to build new lives for themselves,” said Kathleen Morris, Program Manager for the Washington Anti-Trafficking Response Network (WARN). “This funding will allow IRC in Seattle and our WARN partners to provide essential support and services to those affected by human trafficking in our community.”
The grant to the Seattle Police Department is from DOJ’s Bureau of Justice Assistance (BJA). The grant to the International Rescue Committee in Seattle is from DOJ’s Office for Victims of Crime (OVC). The grants support the Enhanced Collaborative Model Task Force taking a comprehensive approach to combating all forms of trafficking—sex trafficking and labor trafficking of foreign nationals and U.S. citizens (male and female, adults and minors). Awards made by BJA support law enforcement agencies to coordinate the goals, objectives, and activities of the entire task force in close collaboration with the U.S. Attorney’s Office and victim service provider partner. Awards made by OVC support victim service organization to coordinate the provision of a comprehensive array of culturally and linguistically appropriate services to all trafficking victims identified within the geographic area impacted by the task force.
Santa Clara Pueblo Man Pleads Guilty to Assaulting Intimate PartnerRead the Press Release
ALBUQUERQUE – James Allen Moquino, 31, a member of Santa Clara Pueblo, N.M., pleaded guilty this morning to a federal assault charge, announced Acting U.S. Attorney Steven C. Yarbrough and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Moquino was arrested on July 5, 2013 based on an indictment charging him with assaulting a woman and causing her serious bodily injury. According to the indictment, Moquino committed the crime on Nov. 21, 2010, in Indian Country within Rio Arriba County.
During this morning’s proceedings, Moquino entered a guilty plea to the indictment and admitted that he assaulted his intimate partner and the mother of his child by repeatedly striking her in the head and face causing her to suffer serious bodily injury. Moquino further admitted that the assault occurred within Santa Clara Pueblo.
Moquino has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Moquino faces a maximum penalty of ten years in prison.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and is being prosecuted by Special Assistant U.S. Attorney David M. Adams.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
San Ramon Attorney Pleads Guilty to Tax Evasion and Eavesdropping ChargesRead the Press Release
SAN FRANCISCO - Mary Nolan, a family law attorney in San Ramon, California, pleaded guilty in federal court on September 27, 2013, to four counts of tax evasion and one count of unlawful interception of communications, announced United States Attorney Melinda Haag.
Nolan, 61, entered guilty pleas to all of the substantive counts in the indictment. According to her plea agreement, Nolan willfully evaded more than $400,000 in federal taxes between 2005 and 2009. Nolan agreed to pay $468,918.01 in restitution, and admitted having obstructed justice by submitting false contracts to the IRS during an audit. Additionally, according to the plea agreement, Nolan caused her staff to illegally eavesdrop by accessing a listening device that private investigator Christopher Butler had installed in a vehicle used by “N.F” (a victim). Nolan agreed to resign her bar license and never to practice law again.
Butler, who pleaded guilty to unlawful interception and several other offenses on May 4, 2012, admitted having installed approximately seventy-five to one hundred unlawful listening devices at the request of clients or their attorneys, including the listening device in “N.F.’s” vehicle in August 2007. Butler was sentenced to 60 months imprisonment on this charge, to be served concurrently with the 96-month sentence on his other counts of conviction.
Nolan was indicted on September 6, 2012, by a federal grand jury charging her with tax evasion for the years 2005 through 2009, in violation of 26 U.S.C. § 7201; unlawful interception of communication, in violation of 18 U.S.C. § 2511(1)(a) and (4)(a); and conspiracy to unlawfully intercept communications, in violation of 18 U.S.C. § 371.
Nolan’s sentencing hearing is scheduled for January 15, 2013, at 10:00 a.m., before the Honorable Charles R. Breyer, United States District Court Judge. The maximum penalties for each of the five counts to which Nolan pleaded guilty are five years’ imprisonment, $250,000 fine, three years supervised release, and a $100 special assessment. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Hartley M. K. West is the Assistant U.S. Attorney who prosecuted the case with the assistance of Helen Yee and Rosario Calderon. The prosecution is the result of an investigation by the FBI and the Internal Revenue Service – Criminal Investigation.
(Nolan indictment )
San Bruno Man Sentenced to 70 Months for Obstruction and Being an Accessory-After-The-Fact to Three MurdersRead the Press Release
SAN FRANCISCO – Michael Ortiz, Sr. was sentenced on September 27, 2013, to 70 months in federal prison for obstruction of justice and being an accessory-after-the-fact to three racketeering murders committed by his son, Joseph Ortiz, announced United States Attorney Melinda Haag.
Michael Ortiz, Sr., 50, of San Bruno, admitted that during the evening of December 22, 2010, his son, Joseph Ortiz, told him that he shot and killed several rival gang members in South San Francisco, California. Michael Ortiz, Sr. and other co-defendants agreed to hide or destroy the firearms used in the shootings in order to help Joseph Ortiz avoid arrest and prosecution as well as to hinder the investigation of the shootings. In addition, the next day, Michael Ortiz, Sr. drove his son out of the Bay Area and later helped him flee to Mexico. Michael Ortiz, Sr. also helped hide a critical witness from law enforcement in Mexico.
“This sentence should serve as a warning about the consequences facing gang members who use violence and intimidation to further their criminal enterprises,” said Clark Settles, Special Agent in Charge for Homeland Security Investigations, San Francisco. “Homeland Security Investigations will continue to use all of the resources and authorities at its disposal to attack and dismantle the dangerous transnational gangs operating in the Bay Area.”
Michael Ortiz, Sr., pleaded guilty on July 10, 2013, to being an accessory after the fact to racketeering murder, in violation of 18 U.S.C. §§ 3 and 1959(a)(1); conspiring to obstruct justice, in violation of 18 U.S.C. § 371; obstruction of justice, in violation of 18 U.S.C. §§ 1512(c)(2) and (2); and concealment of an object to obstruct an investigation, in violation of 18 U.S.C. §§ 1519 and 2.
The Honorable Susan Illston, United States District Court Judge, handed down the 70 month sentence. Judge Illston also ordered the defendant to serve a three-year term of supervised release during which he may be searched by any federal, state, or local law enforcement officer with or without cause.
Joseph Ortiz, AKA “Little Vicious,” member of the 500 Block/C Street Gang, pleaded guilty to the racketeering murders on July 19, 2013. He is scheduled to be sentenced by Judge Susan Illston on November 8, 2013.
Acadia L. Senese and W.S. Wilson Leung are the Assistant United States Attorneys who are prosecuting the case, with the assistance of Kevin Costello, Ponly Tu, Marina Ponomarchuk, and Daniel Charlier-Smith. This prosecution is the result of an investigation by the Daly City Police Department and the South San Francisco Police Department, working with Homeland Security Investigations, and with the assistance of the San Mateo County Sheriff’s Office. Of the nineteen defendants originally charged as a result of this investigation, fourteen have pleaded guilty to racketeering-related offenses and/or offenses related to the obstruction of justice.
(Ortiz second superseding indictment )
Richland County Woman Sentenced on Methamphetamine Related ChargesRead the Press Release
A Richland County woman was sentenced on September 24, 2013, to federal prison on methamphetamine related charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Patricia Ann Utley, 53, of Olney, was sentenced to 108 months in prison, to be followed by four years supervised release, and fined $200. Utley had previously pleaded guilty to a federal indictment which charged that from February 2011, until on or about October 2012, in Richland County and Edwards County, Utley conspired with others known and unknown to the grand jury to manufacture more than 50 grams of methamphetamine.
The investigation was conducted by the Richland County Sheriff’s Office.
The case is being handled by Assistant United States Attorney George Norwood.
Prewitt, N.M., Man Sentenced to Nine Years in Federal Prison for Aggravated Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Justin Kenneth, 21, a member and resident of the Navajo Nation who resides in Prewitt, N.M., was sentenced this morning to nine years in federal prison followed by five years of supervised release for his aggravated child sexual abuse conviction. He also was ordered to pay $2,411 in restitution. Kenneth will be required to register as a sex offender after he completes his prison sentence.
The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent Carol K.O. Lee of the Albuquerque Division of the FBI, and Director John Billison of the Navajo Nation Division of Public Safety.
Kenneth was arrested in Dec. 2010, on a criminal complaint alleging that he sexually abused a child under the age of 12 in Oct. 2010, on the Navajo Indian Reservation. On April 29, 2013, Kenneth entered a guilty plea to a felony information charging him with aggravated sexual abuse and admitted sexually abusing the child victim by improperly touching the child’s genitalia. Kenneth further admitted that he committed this crime on Oct. 6, 2010, at a residence located on the Navajo Indian Reservation. Kenneth has been in federal custody since entering his guilty plea.
This case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Division of Public Safety. Assistant U.S. Attorney Jacob A. Wishard prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who 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/.
Philadelphia Man Sentenced to 60 Months in Prison for Forging Federal Judge’s Signature to Escape from PrisonRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kevin William Small, age 50, was sentenced today in Harrisburg by United States District Court Judge Gene E.K. Pratter to 60 months’ imprisonment and three years of supervised release for mail fraud, escape, forging judicial signatures, use of a counterfeit seal and possession of a counterfeit seal. Small was also ordered to pay a $2,500 fine.
According to United States Attorney Peter J. Smith, in 2007, Small was convicted of four counts of filing false tax claims following a week-long trial before Chief District Court Judge Christopher C. Conner. Evidence presented during the trial showed that Small was a long-term state prisoner who for at least four years had filed for an income tax refund claiming that he was due a substantial tax refund. Trial evidence from 2007 also established that Small created documents to substantiate his fictitious employment and opened fraudulent bank accounts to receive the tax refunds.
Judge Conner sentenced Small to serve 135 months in federal prison and directed that he begin serving this sentence after he finished serving his state sentence at Huntingdon State Prison. Small’s conviction and sentence were affirmed by appellate courts following two rounds of appeals.Small’s state sentence expired on January 5, 2012 and he was scheduled to be turned over to federal prison authorities on that day. However, state prison officials had received a document that purported to be signed and sealed by Judge Conner and the Clerk of Courts for the Middle District of Pennsylvania that stated that Small’s federal conviction had been vacated. As a result, Small was released on that day rather than being turned over to federal prison authorities to begin serving his federal sentence.
The escape was discovered when a federal agent called the state prison on another matter on March 8, inquired about Small, and learned that Small had been released to the street on January 5, 2012.
Small was located by the U.S. Marshals Service and arrested in a residence in Philadelphia in March 2012. Many documents that appeared to be forged or fraudulent were seized from the residence at the time of his arrest, including partially-prepared court documents that purportedly freed other state prisoners.
Small was indicted on the most recent charges in March 2012. A superseding indictment was returned in December 2012. Small pleaded guilty in May 2013.
Judge Pratter, a federal Judge in the Eastern District of Pennsylvania, was assigned to the case because the defendant’s conduct involved forgery of the signature of a federal Judge in the Middle District of Pennsylvania.
This case was investigated by the United States Marshals Service, the Federal Bureau of Investigation, and the Internal Revenue Service Criminal Investigations and is assigned to Assistant U.S. Attorney Christy H. Fawcett.
Pharr Man Handed Sentence for Involvement in Straw Purchase of FirearmsRead the Press Release
McALLEN, Texas – Christopher Bryan Santos, 21, of Pharr, has been handed a federal prison sentence for making false statements in the acquisition of firearms from Federal Firearms Licensees (FFL), commonly known as straw purchasing, announced United States Attorney Kenneth Magidson along with Robert Elder, special agent in charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Today, U.S. District Judge Randy Crane sentenced Santos to 51 months in federal prison to be immediately followed by a two-year-term of supervised release.
In February 2011, ATF agents discovered information regarding several firearms purchases made by Santos. On March 28, 2011, and April 15, 2011, Santos purchased a total of four firearms. He admitted he provided false information on ATF forms that the firearms were purchased for himself, when he knew they were actually for another individual.
It was further determined that the firearms were being trafficked and used or possessed for another felony offense. The sentence today was further enhanced because it was determined he recruited others to make additional straw purchases.
Santos will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the ATF and is being prosecuted by Assistant United States Attorney Juan Villescas.
Pennsylvania Man Admits Conspiring with Alleged Members of Organized Crime Family and Others in Fraud SchemeRead the Press Release
A Pennsylvania man today admitted he conspired to defraud FIRSTPLUS Financial Group Inc. (FPFG), a Texas-based financial services company allegedly targeted for extortionate takeover and looting by a group led by alleged Lucchese organized crime family member Nicodemo S. Scarfo.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Paul J. Fishman of the District of New Jersey made the announcement.
Cory Leshner, 30, pleaded guilty before U.S. District Judge Robert B. Kugler in a federal court in Camden, N.J., to a superseding information charging him with conspiracy to commit wire fraud. He faces a maximum of five years in prison when he is sentenced on Jan. 17, 2014.
According to documents filed in this case and statements made in court, Leshner and 12 others – including Scarfo, an alleged member of the Lucchese La Cosa Nostra (LCN) crime family, and Salvatore Pelullo, an alleged associate of the Lucchese and Philadelphia LCN families – were variously charged in a November 2011 indictment with a racketeering conspiracy that included acts of securities fraud, wire fraud, mail fraud, bank fraud, extortion, interstate travel in aid of racketeering, money laundering and obstruction of justice. The indictment charged that FPFG was targeted for extortionate takeover and looting by a group of the conspirators. A substantial part of the enterprise’s activities occurred in New Jersey, including communications and the transfer of money into and out of the state. Cory Leshner admitted that he joined the conspiracy in April 2007.Leshner admitted that he assisted Scarfo and Pelullo in managing family trusts and limited liability companies as part of the scheme to defraud FPFG. Pelullo directed Leshner in the use of various bank accounts through which Pelullo received hundreds of thousands of dollars between July 2007 and April 2008 as part of the scheme. The money involved proceeds of the fraud that Pelullo allegedly received as part of a fraudulent “consulting” agreement between his shell company, Seven Hills Management, and codefendant William Maxwell, a Texas attorney who served as “special counsel” to FPFG as part of the scheme. The money also involved proceeds received from the fraudulent sale of Scarfo and Pelullo’s worthless companies to FPFG in 2007. The receipt of the fraudulent proceeds often occurred in the form of wire transfers from accounts in Pennsylvania to accounts in New Jersey.
According to his court statements, Leshner was a law student during the scheme. Leshner graduated from law school in 2009 and became an attorney in Pennsylvania in 2011. As part of his plea agreement, Leshner agreed to notify the Pennsylvania Supreme Court of his guilty plea and to accept any disciplinary action brought by disciplinary officials as a result of the guilty plea and sentence. Leshner also agreed to not seek the reinstatement of his license to practice law while serving any sentence of imprisonment imposed in the case.
Scarfo, Pelullo, and five other defendants charged in November 2011 – including attorneys William Maxwell, David Adler, Gary McCarthy, and Donald Manno, as well as John Maxwell – are scheduled for trial beginning Oct. 28, 2013. Todd Stark, also charged in the indictment, previously pleaded guilty to providing ammunition to Scarfo and Pelullo, convicted felons.
This case was investigated by the FBI; the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the U.S. Securities and Exchange Commission. The case is being prosecuted by Trial Attorney Adam Small of the Organized Crime and Gang Section of the Justice Department’s Criminal Division and Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the New Jersey U.S. Attorney’s Office Organized Crime/Gangs Unit and Criminal Division in Camden.
With respect to the defendants awaiting trial, the charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Pennsylvania Man Admits Conspiring with Alleged Members of Organized Crime Family and Others in Fraud SchemeRead the Press Release
CAMDEN, N.J. – A West Reading, Pa., man admitted he conspired to defraud FirstPlus Financial Group Inc. (FPFG), a Texas-based financial services company allegedly targeted for extortionate takeover and looting by a group led by alleged Lucchese organized crime family member Nicodemo S. Scarfo, U.S. Attorney Paul J. Fishman announced.
Cory Leshner, 30, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to a superseding information charging him with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
Leshner and 12 others – including Scarfo, an alleged member of the Lucchese La Cosa Nostra (LCN) crime family, and Salvatore Pelullo, an alleged associate of the Lucchese and Philadelphia LCN families – were variously charged in a November 2011 indictment with a racketeering conspiracy, including acts of securities fraud, wire fraud, mail fraud, bank fraud, extortion, interstate travel in aid of racketeering, money laundering and obstruction of justice. The indictment charged that FPFG was targeted for extortionate takeover and looting by a group of the conspirators. A substantial part of the enterprise’s activities occurred in New Jersey, including communications and the transfer of money into and out of the state. Cory Leshner admitted that he joined the conspiracy in April 2007.
Leshner admitted that he assisted Scarfo and Pelullo in managing family trusts and limited liability companies on behalf of Scarfo and Pelullo as part of the scheme to defraud FPFG. Leshner said that Pelullo directed Leshner in the use of various bank accounts through which Pelullo received hundreds of thousands of dollars between July 2007 and April 2008 as part of the scheme. The money included the proceeds of the fraud that Pelullo allegedly received as part of a fraudulent “consulting” agreement between his shell company, Seven Hills Management, and codefendant William Maxwell, a Texas attorney who served as “special counsel” to FPFG as part of the scheme. The money also involved proceeds received from the fraudulent sale of Scarfo and Pelullo’s worthless companies to FPFG in 2007. The receipt of the fraudulent proceeds often occurred in the form of wire transfers from accounts in Pennsylvania to accounts in New Jersey.
Leshner also said that he was a law school student during the scheme. Leshner graduated from law school in 2010 and became an attorney in Pennsylvania in 2011. As part of his plea agreement, Leshner agreed to notify the Pennsylvania Supreme Court of his guilty plea and to accept any disciplinary action brought by disciplinary officials as a result of the guilty plea and sentence. Leshner also agreed to not seek the reinstatement of his license to practice law while serving any sentence of imprisonment imposed in the case.
Nicodemo S. Scarfo, Pelullo, and five other defendants charged in November 2011 – including attorneys William Maxwell, David Adler, Gary McCarthy, and Donald Manno, as well as John Maxwell – are scheduled for trial beginning Oct. 28, 2013. Todd Stark, also charged in the indictment, previously pleaded guilty to providing ammunition to Scarfo and Pelullo, convicted felons.
The conspiracy count to which Cory Leshner pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 17, 2014.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, New York Region; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Thomas J. Cannon in Newark. He also thanked the FBI under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia for its vital assistance and the U.S. Securities and Exchange Commission for its role.
The government is represented by Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener, of the New Jersey U.S. Attorney’s Office Organized Crime/Gangs Unit and Criminal Division in Camden, and Trial Attorney Adam Small of the Organized Crime and Gang Section of the Justice Department’s Criminal Division.
With respect to the defendants awaiting trial, the charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
13-398Defense counsel: Rocco C. Cipparone Jr., Esq., Haddon Heights
Leshner Superseding Information
Penfield Man Sentenced for Trafficking HeroinRead the Press Release
ROCHESTER, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Alfredo Valentin, Jr., a/k/a Alfredo Valentine, a/k/a Fred Valentin, a/k/a Fred Vegas, 44, of Penfield, N.Y., who was convicted of conspiracy to possess with intent to distribute and distribution of one kilogram or more of heroin, was sentenced to 20 years in prison and 10 years supervised release by U.S. District Judge David G. Larimer. Valentin was also ordered to forfeit $74,690 in U.S. currency, a 9mm pistol, and rounds of ammunition seized during the investigation.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that Valentin purchased large quantities of heroin in New York City which he transported back to Rochester. The defendnat then processed, packaged, and resold the heroin in various quantities. Valentin was arrested January 16, 2013 while operating a rental car and was in possession of over 130 grams of heroin and $2,000 in U.S. currency. During the execution of a search warrant that same day at the defendant’s Plank Road residence in Penfield, law enforcement officers recovered a Hi-Point 9mm pistol with a defaced serial number, rounds of 9mm ammunition, and heroin trafficking paraphernalia. The investigation continued after Valentin was arrested and, on February 13, 2013, agents seized $72,690 in the defendant’s drug proceeds during the execution of a search warrant at 140 Central Park in Rochester.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge, Brian R. Crowell, New York Field Division, with assistance provided by the Greater Rochester Area Narcotics Enforcement Team (GRANET), and the Rochester Police Department under the direction of Chief James M. Sheppard, the Monroe County District Attorney’s Office, under the direction of Sandra Doorley, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives under the direction of Resident Agent in Charge, Scott Heagney.Omaha Men Sentenced to Prison for Distributing Methamphetamine in Omaha, NebraskaRead the Press Release
United States Attorney Deborah R. Gilg announced Friday that the Honorable Richard G. Kopf, U.S. District Court Judge, sentenced Carlos Navarro, 21, to 46 months imprisonment, and Erik Martinez, 22, to 57 months imprisonment, each to be followed by 3 years of supervised release. They were both also ordered to pay a $100 special assessment, following their conviction for distribution of methamphetamine.
On August 15, 2012, a cooperating witness bought 109 grams of methamphetamine from Martinez. Martinez contacted Navarro who made the actual delivery. On August 22, 2012, a meeting was set up between Martinez and the cooperator for the cooperator to pay for the methamphetamine. Both Martinez and Navarro showed up, Martinez was given the money and they were arrested.
Homeland Security Investigations and the Omaha Police Department were responsible for the investigation of this case.
North Carolina Businessman Sentenced for Tax FraudRead the Press Release
William Robert Hupman Jr., of Mebane, N.C., was sentenced to serve 17 months in prison followed by one year of supervised release for tax fraud today, the Justice Department and the Internal Revenue Service (IRS) announced. Hupman was also ordered to pay restitution to the IRS of $103,420.
Hupman pleaded guilty on May 31, 2013, to corruptly endeavoring to obstruct or impede the due administration of the Internal Revenue laws. According to court documents and court proceedings, Hupman managed and controlled Security Concepts LLC (SC), a security alarm company based in Mebane, N.C. Instead of receiving a salary from SC, Hupman received income by using an SC debit card to pay his expenses. Despite receiving over $770,000 in such fees between 2007 and 2011, Hupman has not filed an individual income tax return since tax year 2006.
Court documents indicate that in addition to his failure to comply with his personal income tax responsibilities, Hupman also failed to comply with his employment tax responsibilities at SC. As the person who managed and controlled SC, Hupman was responsible for withholding employment taxes and paying them over to the IRS on a periodic basis. SC last paid over employment taxes and filed the required tax form for the third quarter of 2009, despite the fact that employment taxes were actually withheld from the wages of SC employees. Hupman did not pay employment taxes or file the required tax form for the fourth quarter of 2009 or any of the quarters in 2010 and 2011. He also has not paid the federal unemployment taxes owed or filed the required tax form for years 2009, 2010 or 2011. According to court documents and court proceedings, the criminal tax loss was $103,420.
Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division, thanked Special Agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Todd Ellinwood and Kevin Lombardi for prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax .
North Carolina Businessman Sentenced for Tax FraudRead the Press Release
WASHINGTON – William Robert Hupman Jr., of Mebane, N.C., was sentenced to serve 17 months in prison followed by one year of supervised release for tax fraud today, the Justice Department and the Internal Revenue Service (IRS) announced. Hupman was also ordered to pay restitution to the IRS of $103,420.
Hupman pleaded guilty on May 31, 2013, to corruptly endeavoring to obstruct or impede the due administration of the Internal Revenue laws. According to court documents and court proceedings, Hupman managed and controlled Security Concepts LLC (SC), a security alarm company based in Mebane, N.C. Instead of receiving a salary from SC, Hupman received income by using an SC debit card to pay his expenses. Despite receiving over $770,000 in such fees between 2007 and 2011, Hupman has not filed an individual income tax return since tax year 2006.
Court documents indicate that in addition to his failure to comply with his personal income tax responsibilities, Hupman also failed to comply with his employment tax responsibilities at SC. As the person who managed and controlled SC, Hupman was responsible for withholding employment taxes and paying them over to the IRS on a periodic basis. SC last paid over employment taxes and filed the required tax form for the third quarter of 2009, despite the fact that employment taxes were actually withheld from the wages of SC employees. Hupman did not pay employment taxes or file the required tax form for the fourth quarter of 2009 or any of the quarters in 2010 and 2011. He also has not paid the federal unemployment taxes owed or filed the required tax form for years 2009, 2010 or 2011. According to court documents and court proceedings, the criminal tax loss was $103,420.
Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division, thanked Special Agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Todd Ellinwood and Kevin Lombardi for prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
North Canton Man Charged with Embezzling $219,000Read the Press Release
A criminal information was filed charing a North Canton man with embezzling $219,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Joshua L. Haddad, age 29, is accused of embezzling approximately $219,900 from First Merit Corporation from April 2010 through September 2012. Haddad did this while he was employed as a teller at the bank’s Country Fair Branch, 4105 Tuscarawas Street West, in Canton, Ohio, which is a bank whose deposits were insured by the Federal Deposit Insurance Corporation, according to the information.
If convicted, the defendant's sentence will be determined by the court after review of factors unique to this case, including the defendant's prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
This case is being prosecuted by Assistant U.S. Attorney Margaret A. Sweeney, following investigation by the Federal Bureau of Investigation.
Naples Man Sentenced to Four Years for Filing False Income Tax ReturnsRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele today sentenced Frederick R. Green to 4 years in federal prison for false claims against the government, possession of 15 or more unauthorized access devices, and theft of government money. The court also ordered Green to forfeit $10,322.00 in United States currency, which is traceable to proceeds of the offense. In addition, Green was ordered to pay $311,746.00 in restitution to the Internal Revenue Service. Green pleaded guilty on March 5, 2013.
According to court documents, on or about January 20, 2012, Green knowingly filed a false federal income tax return using the name E.P., in which he made a fraudulent claim for an income tax refund in the amount of $9,913, to the Internal Revenue Service.
The Internal Revenue Service confirmed that on January 20, 2012, E.P.’s return was prepared, received and processed by the IRS and a refund in the amount of $9,913 was applied to a Bancorp debit card.
The Internal Revenue Service conducted additional research and determined that more than 70 returns were filed from the same IP address utilized by Green on January 20, 2012.
A search warrant was executed on July 12, 2012, on Green’s residence in Collier County. During the execution of the warrant, Green was found to be in possession of 15 or more unauthorized access devices. Specifically, he was in possession of 25 debit cards in other peoples’ names that were found in his jacket pocket. Further, there were numerous other debit cards on the table next to his computer. One of the cards found during the execution of the search warrant was in E.P.’s name. Agents also located sheets of personal identifying information and more than $10,000 in cash.
From at least January 20, 2012 through July 12, 2012, Green knowingly and willfully stole and converted to his own use money that belonged to the United States. The amount of the returns filed from the IP address while it was assigned to Green’s residence is $648,967. From the fraudulent claims for income tax refunds, Green received payment for $311,746.
This case was investigated by the United States Secret Service, the Lee County Sheriff’s Office, and the Collier County Sheriff’s Office as part of the United States Secret Service Southwest Florida Financial Crimes Strike Force, and the Internal Revenue Service. It is being prosecuted by Assistant United States Attorney Yolande G. Viacava.