Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 26 September 2013
Aryan Brotherhood of Texas Gang Leader Sentenced for Role in Racketeering ConspiracyRead the Press Release
HOUSTON – A high-ranking member of the Aryan Brotherhood of Texas (ABT) was sentenced today to serve 360 months in prison for his role in the ABT’s criminal enterprise, announced United States Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Charles Lee Roberts, aka “Jive,” 68, of Beaumont, was sentenced today by U.S. District Judge Sim Lake in the Southern District of Texas. In addition to his prison term, Roberts will serve five years of supervised release.On May 10, 2013, Roberts pleaded guilty to one count of conspiracy to commit racketeering offenses (RICO).
According to court documents, Roberts and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Roberts and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
Roberts admitted to being a senior leader of the ABT, trafficking in methamphetamine and heroin, and being involved in several homicides on behalf of the ABT.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT has expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
Roberts is one of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; sheriff’s offices in Harris, Tarrant, Atascosa, Orange and Waller Counties; police departments in Alvin, Carrollton and Mesquite Texas; as well as the Montgomery and Atascosa County District Attorney’s Offices.The case is being prosecuted by the U.S. Attorney’s Office of the Southern District of Texas and the Criminal Division’s Organized Crime and Gang Section.
10th Street Gang Member Pleads Guilty to Racketeering ChargeRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Sam Thurmond, 25, of Buffalo, N.Y., pleaded guilty before U.S. District Judge Richard J. Arcara, to federal Racketeering Influenced Corrupt Organizations Conspiracy (RICO Conspiracy) before U.S. District Court Judge Richard J. Arcara. The charge carries a maximum penalty of life in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that between 2000 and 2011, Thurmond was a member of the 10th Street Gang. As a part of his involvement in the gang, the defendant participated in the murders of Brandon MacDonald and Darinell Young who were shot and killed on April 17, 2006.On April 16, 2006, rival 7th Street Gang members were believed to have shot a 10th Street Gang member. In response, Thurmond and other 10th Street Gang members planned to retaliate. On April 17, the defendant and others obtained firearms including several shotguns, a .22 caliber rifle, a .22 caliber handgun, a .44 caliber handgun, and a .380 caliber handgun. The defendant and other 10th Street Gang members and associates then went to the area around 155 Pennsylvania Street where they believed rival 7th Street Gang members involved in the shooting were located. The 10th Street Gang members and associates, including Thurmond, began shooting at the individuals sitting on the porch, and standing near 155 Pennsylvania Street. Brandon MacDonald and Darinell Young, who were not members of the 7th Street Gang, were both shot, and both died as a result of injuries sustained during the shooting.
Thurmond is the 25th 10th Street Gang member or associate who has been convicted in connection with the investigation.
The plea is the culmination of an investigation on the part of Investigators of the New York State Police under the direction of Major Michael Cerretto, the Buffalo Police Department under the direction of Commission Daniel Derenda, and Special Agents of the Federal Bureau of Investigation under the direction of Special Agent in Charge Brian P. Boetig.
Sentencing is scheduled for February 12, 2014, at 12:30 p.m. before Judge Arcara.
Wednesday 25 September 2013
Wright City Man Convicted of Federal Drug Distribution ChargesRead the Press Release
St. Louis, MO – JAMES L. MILLINER, Wright City, Missouri, was convicted late Tuesday of conspiracy to distribute over 280 grams of crack cocaine. The two-day trial was held before United States District Judge Rodney Sippel.
According to testimony presented at trial, Milliner and his co-defendants sold large amounts of crack cocaine at an open air market in Wright City, Missouri, from 2007 through 2012. Milliner is set for sentencing December 20, 2013.
The following seven co-defendants have pled guilty to related charges and have been sentenced to prison terms ranging from probation to 136 months in prison.
- Charles E. McRoberts, Wentzville, Missouri
- Dante M. Brandt, Wright City, Missouri
- Porsheia I. Barnes, Moscow Mills, Missouri
- Christopher D. Adams, Wright City, Missouri
- Antwaun M. Nunn, Wright City, Missouri
- Cipriano M. Garcia, Moscow Mills, Missouri
- James E. Simpson, Wright City, Missouri
Two more await sentencing:
- Michael B. Rogers, Wright City, Missouri
- Halesha C. Bradshaw, Wright City, Missouri
The charge of conspiracy to distribute over 280 grams of crack cocaine carries a penalty range of 10 years to life in prison and/or fines up to $4 million. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was jointly investigated by the Warren County Sheriff’s Department, the East Central Drug Task Force, Lincoln County Sheriff’s Department, the Troy Police Department and the Drug Enforcement Administration. Assistant United States Attorney Jeannette Graviss is handling the case for the U.S. Attorney’s Office.William Beavers Sentenced for Failing to Pay Taxes on Campaign and County Funds Used for Personal PurposesRead the Press Release
CHICAGO — WILLIAM BEAVERS, a former Cook County Commissioner and, before that, a longtime Chicago alderman and police officer, was sentenced today to six months in prison for obstructing the Internal Revenue Service and failing to report, and pay taxes on, all of his income. Beavers was convicted after a trial in March of concealing his under-reporting of income and underpayment of taxes on thousands of dollars that he converted to personal use from his campaign accounts, as well as from his county discretionary spending account. Between 2006 and 2008, Beavers wrote 100 checks to himself, totaling approximately $226,000, from three separate campaign accounts and used at least a portion of those funds for personal purposes, including gambling. In 2006, he used more than $68,000 from a campaign account to boost his city pension, and between 2006 and 2008, he used his $1,200 monthly county contingency account, totaling $28,800, for personal purposes without reporting any of these funds as income on his federal tax returns.
Beavers, 78, of Chicago, was also fined $10,000 and ordered to pay $30,848 in restitution to the IRS by U.S. District Judge James Zagel. Beavers was ordered to begin serving his sentence on Dec. 2, to be followed by a year of supervised release. During supervised release, the judge ordered Beavers to perform 400 hours of community service and prohibited him from gambling or visiting a casino or racetrack.
“Far from being the victim of others’ poor advice, Beavers was a victim of his own greed,” prosecutors wrote in a sentencing memo. “[H]is public claims that he was charged not because of his tax fraud, but rather as a result of government vindictiveness, were yet another effort to shift blame away from himself and point the finger at others.”
Beavers was elected to the Cook County Board of Commissioners, representing the 4th District, in November 2006 and began serving as a commissioner a month later. Previously, he served as the 7th Ward alderman on Chicago’s City Council from 1983 until November 2006, when he was elected to the commissioner’s post.
According to the evidence at trial, Beavers had sole authority over three campaign committees that supported his political activities ― Citizens for Beavers, Friends of William Beavers, also known as Friends for William Beavers, and 7th Ward Democratic Organization. As part of the corrupt endeavor to obstruct the IRS, Beavers converted campaign funds for his own personal use, provided false information to his campaign treasurers regarding the use of these funds, and understated his income and the taxes he owed in his individual income tax returns for 2006, 2007, and 2008.
While giving Beavers credit at face value for every explanation for the use of campaign funds, no matter how implausible, the government presented evidence at trial showing that between 2006 and 2008 he failed to report income totaling at least $127,747 and failed to pay taxes on that amount totaling $40,463.
During those three years, Beavers caused his campaign committees to issue checks payable to himself and to third parties on his behalf, and he used at least part of the proceeds for personal expenses, including gambling. The checks totaled about $96,000 in 2006, $69,300 in 2007, and $61,000 in 2008, for a total of $226,300.
As part of the corrupt endeavor, Beavers concealed his personal use of campaign funds by maintaining and causing campaign workers to maintain records that falsely reflected the uses of the campaign checks, including records used to prepare semi-annual Illinois campaign finance reports known as D-2s. Beavers caused campaign workers to falsely record, on check stubs and other records, that certain campaign checks written to him and used for personal purposes were instead used for campaign expenses.
In some instances, Beavers attempted to conceal his personal use of campaign funds by telling campaign workers that checks payable to and cashed by him were for paying campaignrelated expenses, even though those expenses were not incurred by the campaign committees until months after Beavers had converted the funds. In other instances, Beavers withheld from his campaign staff any explanation of certain checks payable to him, or he caused workers to falsely record that certain checks were “void” or unused even though he had cashed them.
On Nov. 14, 2006, Beavers caused a check for $68,763.07 to be paid from Citizens for Beavers to the Municipal Employees’ Annuity and Benefit Fund of Chicago, a pension plan for certain City of Chicago employees including Aldermen, to increase his monthly pension from $2,890 to $6,541. The check was for personal use and should have been, but was not, reported as income on his 2006 income tax return.
The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Robert J. Shields, Jr., Acting Special Agent-in- Charge of the Chicago Office of the Federal Bureau of Investigation.
The government was represented by Assistant U.S. Attorneys Matthew Getter, Samuel B. Cole, and Carrie Hamilton.
Vern Thomas Gardipee Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on September 25, 2013, before Chief U.S. District Judge Dana L. Christensen, VERN THOMAS GARDIPEE, a 49-year-old resident of Box Elder and an enrolled member of the federally recognized Chippewa Cree Indian Tribe, was sentenced to a term of:
Prison: 30 months
Special Assessment: $100
Supervised Release: 30 years
GARDIPEE was sentenced in connection with his guilty plea to sexual abuse of a minor.
In an Offer of Proof filed by Assistant U.S. Attorney Danna R. Jackson, the government stated it would have proved at trial the following:
On April 27 and 28, 2012, GARDIPEE sexually abused a young girl. GARDIPEE got into bed with the victim and sexually abused her. The victim tried to get away from GARDIPEE and eventually got GARDIPEE to stop his advances but not until after sexual contact occurred.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that GARDIPEE will likely serve all of the time imposed by the court. In the federal system, GARDIPEE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
U.S. Citizen Sentenced in Manhattan Federal Court to 25 Years in Prison for Conspiring to Aid the TalibanRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ALWAR POURYAN, 38, a U.S. citizen, was sentenced today in Manhattan federal court to 25 years in prison for conspiring to provide material support to the Taliban and conspiring to acquire anti-aircraft missiles. The case arose out of a U.S. Drug Enforcement Administration (“DEA”) undercover operation in which POURYAN and a co-defendant, Oded Orbach, also a U.S. citizen, agreed to provide various military-grade weapons, including heat-seeking surface-to-air missiles, to an individual they believed to represent the Taliban. POURYAN and Orbach were convicted in August 2013 after a two-week bench trial. U.S. District Judge Naomi Reice Buchwald presided over the trial and imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara stated: “Alwar Pouryan was an American who was all too willing to do business with the Taliban – agreeing to provide that narco-terrorist organization with lethal, military-grade weapons that would have put countless innocent lives at risk. The sentence handed down today is a just and appropriate penalty for an individual who so callously sold out his country.”
According to evidence at trial and documents previously filed in Manhattan federal court:
Beginning in the fall of 2010, and continuing through their arrest on February 10, 2011, POURYAN and Orbach communicated with a confidential source (the “CS”) working with the DEA who purported to represent the Taliban. The communications occurred by telephone, via email, and in a series of audio-recorded and videotaped meetings over several months.
During meetings in Ghana, Ukraine, and Romania beginning in November 2010, POURYAN and Orbach, at different times, agreed to arrange the sale of weapons to the CS for the Taliban’s use against U.S. military forces in Afghanistan. At the meetings, POURYAN and Orbach discussed weapons specifications, pricing, and the provision of training for the various weapons, including, among others, “Stinger” surface-to-air missiles, anti-tank missiles, grenade launchers, and M-16 assault rifles. POURYAN and Orbach were informed that the surface-to-air missiles, in particular, were needed to protect Taliban heroin laboratories against attacks by U.S. helicopters. The defendants also offered to provide regular shipments of ammunition. In total, POURYAN and Orbach agreed to provide over $25 million in weapons, ammunition, and training, and expected to make over $800,000 in commissions in connection with the transaction.
The evidence also included internal e-mail and Skype communications between the defendants, which showed them discussing the various weapons requested by the purported Taliban representative, drafting price lists and payment schedules for the weapons, and creating internal budget documents that reflected the expenses and anticipated income from the weapons deal. The evidence also included emails from Orbach to third-party weapons suppliers seeking to obtain certain of the requested weapons.
Following the final meeting in Bucharest, Romania, on February 10, 2011, POURYAN and Orbach were arrested by Romanian authorities in coordination with the DEA. On April 29, 2011, the defendants were transferred by the Government of Romania to the custody of the United States to face charges in the Southern District of New York.
In addition to the prison term, POURYAN was sentenced to 10 years of supervised release and ordered to pay a $200 special assessment.
Orbach is scheduled to be sentenced by Judge Buchwald on November 1, 2013.
The charges, arrest, transfer, and prosecution of POURYAN were the result of close cooperation among the U.S. Attorney’s Office for the Southern District of New York, the Special Operations Division of the DEA, the DEA Warsaw Country Office, the DEA Ghana Country Office, the DEA Athens Country Office, the DEA SECI (South East European Cooperative Initiative Regional Center for Combating Transborder Crime), the Criminal Division’s Office of International Affairs and the National Security Division of the U.S. Department of Justice, the U.S. Attorney’s Office for the Northern District of Illinois, the U.S. Department of State, U.S. Immigration and Customs Enforcement, and the governments of Romania and Ukraine.
Mr. Bharara expressed his sincere gratitude for the work of the Romanian National Prosecutor’s Directorate for Investigating Organized Crime and Terrorism, the Romanian Prosecutor’s Office of the Court of Appeals, and the Romanian National Police Directorate for Investigating Organized Crime.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Christian R. Everdell, Aimee Hector, and Glen A. Kopp are in charge of the prosecution.
U.S. Attorney Carmen M. Ortiz Delivers Remarks at 5th Annual U.S. Export Control ConferenceRead the Press Release
It is my pleasure to welcome you to the 5th annual Massachusetts Counter-Proliferation Working Group Conference. Thank you for taking the time to be here with us today.
In December 2007, almost six years ago, a multi-agency initiative was launched in this district to combat the growing national security threat posed by illegal exports of restricted U.S. military and dual-use technology to foreign nationals and terrorist organizations. Since 2007, our Counter-Proliferation Working Group, consisting of representatives of law enforcement and intelligence agencies, have been working together to coordinate investigations and share information regarding current threats and suspicious activities regarding the transfer of sensitive U.S. technology and information through illegal means.
The proliferation of weapons of mass destruction is one of the greatest threats our country faces today. The WMD threat is not isolated to a single country. For instance, while Iran is aggressively seeking U.S. origin goods to further its nuclear capabilities, terrorist groups are actively seeking to develop chemical weapons and obtain components for improvised explosive devices. Preventing our adversaries from obtaining U.S. export restricted technology is therefore one of our highest priorities. It is clear, however, that the government cannot guard our nation from this immense threat alone; we need the help of our business and academic partners to safeguard sensitive U.S. technology.
In addition, America faces a growing number of espionage threats, ranging from the activities of foreign intelligence services and terrorist groups, to emerging cyber-threats, to increasingly sophisticated operations to obtain trade secrets and technical data concerning U.S. military and dual-use technologies. Foreign states and terrorist organizations routinely seek arms, technology, and other materials from the United States to advance their technology capacity, weapons systems, and in some cases, weapons of mass destruction programs.
Foreign governments are aggressive in their efforts to illegally acquire U.S. technology and technical data. With each passing year, our adversaries become more creative and advanced in their methods to steal our technology. For instance, they have been observed directly targeting U.S. firms; employing commercial firms in the U.S. and third countries to acquire U.S. technology; and recruiting students, professors, and scientists to engage in technology collection.
Three months ago, President Obama called the cyber threat Aone of the most serious economic and national security challenges we face as a nation.@ Private companies are invaluable to handling these threats and often act as our first line of defense. Cyber intrusions are occurring more and more frequently. While prevention is the ultimate goal, we must also focus on disruption. This requires your help and assistance.
The speakers today will be addressing a number of extremely important topics, including the importance of protecting US technology and technical data, how to comply with U.S. export laws, how to protect your technology, and the ongoing threat posed by cyberattacks.
We ask for your help and partnership in protecting our nation’s national and economic security. Please report any suspicious contacts, inquiries and cyber intrusions. Even one suspicious email or call might expose an illegal procurement network or scheme to acquire critical U.S. technology. We ask for your help in keeping our country and our military troops safe.
Once again, I thank you for your participation and continued cooperation. I hope you all find today’s conference both beneficial and interesting.
U.S. Attorney Announces Additional Sherman ProsecutorRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – U.S. Attorney John M. Bales announced the hiring of a federal prosecutor assigned to the Sherman office of the United States Attorney for the Eastern District of Texas.
Assistant U.S. Attorney William Tatum was administered the Oath of Office by U.S. Attorney Bales, today before a small crowd of friends, family, and government officials at the U.S. Attorney’s Office in Sherman.
Tatum is a graduate of Texas A&M University and St. Mary’s University School of Law. Tatum began his career in 2002 as an Assistant District Attorney with the Smith County D.A.’s Office before taking a position as an Assistant Attorney General in the Texas Attorney General’s white collar crime and public integrity section. Tatum is no stranger to a federal prosecutor’s office as he has served the last couple years as an Assistant U.S. Attorney in the Western District of Texas’ Midland office.
Tatum joins the Sherman office where he will prosecute a wide range of federal crimes including drug trafficking, white collar crime, immigration matters, violent crimes and child pornography.
The Eastern District of Texas is comprised of 43 counties stretching from the Gulf of Mexico to the Oklahoma/Texas border. There are 6 staffed offices located in Beaumont, Lufkin, Tyler, Texarkana, Plano and Sherman with a total of 52 federal prosecutors.
Two Executives at North Canton Company Indicted for Conspiracy to Violate Campaign Finance Laws, Obstruct JusticeRead the Press Release
A federal indictment was unsealed today charging two executives at a North Canton company with conspiring to violate campaign finance laws, conspiring to obstruct justice and committing other related crimes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office.
Benjamin Suarez, 72, of Canton, and Michael Giorgio, 61, of Cuyahoga Falls, are both named in the eight-count indictment. They are charged with one count of conspiracy to violate campaign finance laws, two counts of violation of campaign finance laws, two counts of making false statements, one count of conspiracy to obstruct justice and one count of obstruction of justice. Suarez also faces an additional count of witness tampering. The indictment is based on allegations that Suarez, Giorgio and others funneled almost $200,000 in conduit contributions to campaigns in the 2012 election.
“This office, working with the FBI, has always and will continue to ensure that all who participate in our political process follow the rules and obey the law,” Dettelbach said. He also praised the investigation of the FBI in the case.
“Benjamin Suarez and Michael Giorgio engaged in behavior that blatantly ignored and directly circumvented clearly established campaign financing laws,” Anthony said. “The FBI is committed to fully investigate any such intentional violations of these laws, which exist to help ensure fair, honest, and transparent elections.”
Suarez is the founder and owner of a company identified in the indictment as Company A. Giorgio was Company A’s chief financial officer.According to the indictment, Suarez agreed to raise $100,000 for an Ohio candidate for the United States Senate and $100,000 for an Ohio candidate for the United States House. Suarez and Giorgio then recruited individuals who worked for or were otherwise associated with Company A to serve as conduit contributors; that is, to make contributions in their own names and those of their spouses, according to the indictment.
Giorgio, acting at Suarez’s direction, informed potential conduit contributors that the amount of their and their spouse’s contributions would be fully reimbursed by Company A, according to the indictment.
Suarez and Giorgio then directly and indirectly caused Company A to reimburse the conduit contributors, disguising the payments first as salary and then as profit sharing. Suarez and Giorgio caused the payments, including those of spouses, to be “grossed up” to cover payroll and other taxes, so the full amount of the contribution would be reimbursed, according to the indictment.
Suarez and Giorgio disguised and concealed the amount and source of the campaign contributions and identity of Company A as a contributor so that the public would be less likely to know the nature and extent of the support Company A and Suarez were providing the 2012 House campaign and 2012 Senate campaign, according to the indictment.
The indictment details 18 contributions, all made in March 2011, to a 2012 House campaign. It also details 20 contributions, all but one made in May 2011, to a 2012 Senate campaign.
Suarez and Giorgio are also accused of conspiring to obstruct justice from March 2011through this month. They allegedly did this by failing to turn over documents, records and evidence subject to federal Grand Jury subpoenas. They also caused Company A’s controller to create and distribute documents entitled “Advance on Profit Sharing” for all but one Company A employee or contractor who has been reimbursed for campaign contributions. Those documents were intended to create false the impression that the reimbursement payments that Company A previously made to the conduit contributors were actually “advances” that all along were meant to be repaid to Company A by the employees and contractors. They did this after newspaper reports detailed the suspicious contribution, according to the indictment.
According to the indictment, Suarez also sought to influence, delay and prevent witness testimony before a federal Grand Jury.
This case is the result of an investigation by the Federal Bureau of Investigation – Canton Field Office. It is being prosecuted by Assistant United States Attorneys Carole S. Rendon and Rebecca Lutzko.
An indictment 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.
The investigation is ongoing.
Three More Defendants Plead Guilty to Conspiring to Bribe New York State Assemblymember Eric StevensonRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced that IGOR TSIMERMAN, ROSTISLAV BELYANSKY (“SLAVA”), and DAVID BINMAN pled guilty in proceedings yesterday and today in Manhattan federal court to conspiring to bribe New York State Assemblymember Eric Stevenson in connection with a scheme to obtain Stevenson’s assistance in drafting, proposing, and agreeing to enact legislation favorable to their business. TSIMERMAN also pled guilty to conspiring to bribe former New York State Assemblymember Nelson Castro. TSIMERMAN, SLAVA, and BINMAN were arrested in April 2013. TSIMERMAN and SLAVA pled guilty yesterday before U.S. District Judge William H. Pauley III, and BINMAN pled guilty today before Judge Pauley.
Manhattan U.S. Attorney Preet Bharara said: “With these additional guilty pleas, we are holding accountable individuals who wanted the law to be for sale and the legislature to be a bazaar. This Office will continue in its work to prosecute and punish those who attempt to corrupt the legislative process in New York.”
According to the allegations contained in the Complaint, the Superseding Indictment, and statements made in court:
Stevenson has served as a member of the New York State Assembly since 2011 representing District 79, which includes various neighborhoods in the Bronx. Castro is a former member of the New York State Assembly who has been cooperating in this investigation. In August 2013, pursuant to a cooperation agreement, Castro pled guilty in federal court to making false statements to law enforcement agents and also pled guilty in state court to committing perjury in connection with registering New York City residents to vote.
TSIMERMAN, SLAVA, and BINMAN, and co-defendant Igor Belyansky, are business partners who, during 2012 and 2013, were trying to open and manage adult day care centers in the Bronx, New York, including a center on Westchester Avenue (the “Westchester Avenue Center”), within Stevenson’s Assembly District, and another center on Jerome Avenue (the “Jerome Avenue Center”), within Castro’s Assembly District. In connection with their efforts to open and operate both centers, TSIMERMAN, SLAVA, and BINMAN, together with Belyansky, made cash bribe payments to Stevenson. TSIMERMAN and Belyansky also made a cash bribe payment to Castro, who was cooperating with the Government at the time.
At a January 27, 2012 meeting at a restaurant in the Bronx, TSIMERMAN and Belyansky paid Castro $12,000 in cash in exchange for Castro’s assistance in helping TSIMERMAN and Belyansky open an adult day care center in Castro’s district. Immediately following this meeting, Castro met with an individual who was working with TSIMERMAN, SLAVA, Belyansky, and BINMAN on their adult day care centers and who later began cooperating with the Government (the “CW”). Castro told the CW, in sum and substance, “Whatever [TSIMERMAN and Belyansky] need, legislatively, whatever. . . . .” The CW interrupted Castro and stated, in sum and substance, “they call me. I call you. That’s it and it’s how we work.”
At a September 7, 2012 meeting at a steakhouse in the Bronx, SLAVA and Belyansky offered to pay Stevenson $10,000 in exchange for calling Con Edison to expedite the installation of a gas line and assisting with obtaining a Certificate of Occupancy from the New York City Buildings Department at the Jerome Avenue Center, and for assistance recruiting senior citizens to attend the Westchester Avenue Center. Stevenson agreed, but when Belyansky attempted to hand him the $10,000 in cash in an envelope, Stevenson indicated that he was concerned that there might be surveillance cameras in the restaurant, so the transaction was conducted outside. After the group walked outside the restaurant, Belyansky handed Stevenson the envelope of cash, after which Stevenson stuffed the envelope into his front pants pocket and covered his front pocket with the bottom of his shirt.
On January 9, 2013, the CW told Belyansky that Stevenson wanted $10,000 for introducing legislation that would establish a temporary moratorium on the construction and/or opening of new adult day care centers (the “Moratorium Legislation”), which would have the effect of eliminating competition with the Jerome Avenue Center and the Westchester Avenue Center, thereby substantially increasing the profits earned by those two centers. Two days later, on January 11, 2013, at the Westchester Avenue Center, TSIMERMAN, SLAVA, BINMAN, and Belyansky, gave the CW $5,000 cash to be delivered to Stevenson.
At a January 31, 2013 meeting, Stevenson showed the CW a draft of the Moratorium Legislation. On February 11, 2013, Stevenson told the CW: “We got the bill [the Moratorium Legislation] back today . . . [t]he bill is done now, it’s going out to the members . . . to the committee and . . . we’re gonna . . . try to push it to get it to the floor.” On February 16, 2013, in a hotel room in Albany, SLAVA gave $5,000 in cash to the CW, which the CW gave to Stevenson after taking a $500 cut.
Stevenson introduced and sponsored Assembly Bill Number A05139, which places a temporary moratorium on the construction and/or opening of new adult day care centers within New York City, on February 20, 2013.
TSIMERMAN, 47, of Staten Island, New York, SLAVA, 43, of the Bronx, New York, and BINMAN, 52, of Glendale, New York, each pled guilty to conspiring to commit honest services wire fraud, which carries a maximum sentence of 20 years in prison and three years of supervised release. TSIMERMAN also pled guilty to travel act conspiracy, which carries a maximum sentence of five years in prison and three years of supervised release. TSIMERMAN, SLAVA, and BINMAN further agreed to forfeit any proceeds of their crimes and pay restitution in an amount ordered by the Court. TSIMERMAN, SLAVA, and BINMAN will be sentenced by Judge Pauley on January 24, 2014, at 2:00 p.m.
On Monday, September 23, 2013, Belyansky pled guilty before Judge Pauley to conspiring to commit honest services wire fraud and conspiring to violate the travel act. Belyansky is scheduled to be sentenced by Judge Pauley on January 24, 2014, at 2:00 p.m. The charges against Stevenson remain pending and are merely accusations. Stevenson is presumed innocent unless and until proven guilty.
Mr. Bharara expressed his appreciation for the outstanding efforts of the Bronx County District Attorney's Office, the partner in this case.
This prosecution is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Paul M. Krieger and Brian A. Jacobs and Assistant District Attorney Pishoy Yacoub of the Bronx County District Attorney’s Office are in charge of the prosecution.
U.S. v. Eric Stevenson et al. S2 Indictment
Ten Defendants Indicted in Alleged $14.5 Million Mortgage Fraud Scheme That Resulted in $8 Million Loss to LendersRead the Press Release
CHICAGO ― Ten defendants, including five licensed loan originators, were indicted for allegedly participating in a scheme to fraudulently obtain approximately 52 residential mortgage loans totaling at least $14.5 million from various lenders. The indictment alleges that the mortgages were obtained to finance the purchase of various properties, primarily on the west and south sides of Chicago, by straw buyers who were fraudulently qualified for loans while the defendants allegedly profited. As a result, various lenders and their successors incurred losses of at least $8 million because the mortgages were not fully recovered through subsequent sale or foreclosure.
An 11th defendant who worked as a closing agent for a title company in suburban Westchester was indicted separately as part of the same investigation.
Both indictments were returned yesterday by a federal grand jury and announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Barry McLaughlin, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development Office of Inspector General.
KEITH AUSTIN, 41, of Broadview, who controlled companies called Icy Investments, Inc., and Kesha & Icy Investments, Inc., allegedly directed the fraud scheme. He was charged with six counts of wire fraud, three counts of bank fraud, one count of aggravated identity theft, and one count of obstruction of justice.
The obstruction of justice count alleges that Austin and co-defendants CESAR MARIN, 30, of Schaumburg, and MARK PETTIS, 57, of Chicago, both licensed loan originators, prepared and provided false documents in response to federal grand jury subpoenas issued last year. Marin was also charged with three counts of wire fraud, while Pettis was also charged with one count of bank fraud.
Three other licensed loan originators indicted were JOSEPH BATEAST, 40, of Bolingbrook, one count of bank fraud; ROBERT BROWN, 37, address unknown, one count of wire fraud; and CONSTANCE PAEK, 34, of Glenview, one count of wire fraud. Also charged were: WILSON TITUS, 64, of Broadview, three counts of wire fraud and two counts of bank fraud; CLYDE BANKS, also known as “Charles Barksdale,” 36, address unknown, one count of wire fraud; STEVEN GAWLIK, 41, of Chicago, one count of wire fraud; and MICHAEL THILL, 54, of Park Ridge, one count of wire fraud.
The indictment also seeks forfeiture of more than $8 million from Austin, Marin, Titus, Banks, and Bateast, as well as $6,800 seized from Austin’s home during the execution of a search warrant in October 2012, and Austin’s 2007 Lexus LS460, which was seized today. BRANDIE ROBERTS, 34, of Brookfield, formerly a closing agent for a title company in Westchester, was indicted separately on two counts of wire fraud, and her indictment seeks forfeiture of at least $68,366.
All 11 defendants will be arraigned on dates yet to be determined in U.S. District Court.
Austin, Titus, Paek, Pettis, and Thill allegedly recruited property owners to sell their homes, knowing they intended to falsely inflate the sales price so they and others could obtain the proceeds of the mortgage. Austin, Titus, Banks, and Paek allegedly recruited individuals to act as straw buyers by promising that they would not have to use any of their own money, would be paid to attend closings, and would not have to make any subsequent mortgage payments.
The indictment alleges that Austin, Marin, Titus, Brown, and Paek received the proceeds of the fraudulent loans and used the funds to enrich themselves.
The government is being represented by Assistant U.S. Attorneys Yasmin N. Best and Kenneth E. Yeadon.
Each count of wire fraud affecting a financial institution and bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine, and restitution is mandatory. The Court may impose an alternate fine totaling twice the loss or twice the gain, whichever is greater. The aggravated identity theft count against Austin carries a mandatory consecutive sentence of two years in prison, and the obstruction of justice count carries a maximum of 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Since 2008, more than 200 defendants have been charged in Federal Court in Chicago and Rockford with engaging in various mortgage fraud schemes involving more than 1,000 properties and approximately $300 million in potential losses, signifying the high priority that federal law enforcement officials give mortgage fraud in an effort to deter others from engaging in crimes relating to residential and commercial real estate.
Today’s announcement is part of efforts by the Financial Fraud Enforcement Task Force (FFETF), which wages an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force facilitates increased investigation and prosecution of financial crimes; enhanced coordination and cooperation among federal, state and local authorities; addresses discrimination in the lending and financial markets, and conducts outreach to the public, victims, and financial institutions. For more information on the task force, visit stopfraud.gov.
Indictment
Teenager Pleads Guilty to First-Degree Murder While Armed in Slaying at Woodley Park Metro Station-Defendant Is Latest of Those Charged to Plead Guilty; He Admits Stabbing 18-Year-Old Victim-Read the Press Release
WASHINGTON – Chavez Myers, 18, pled guilty today to a charge of first-degree murder while armed in the slaying of 18-year-old Olijawon Griffin at the Woodley Park Metro station, announced U.S. Attorney Ronald C. Machen Jr., Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Ron Pavlik, Chief of the Metro Transit Police.
Myers, of District Heights, Md., entered the plea in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for a 30-year prison sentence for the crime. The Honorable Ronna L. Beck scheduled a hearing for Dec. 13, 2013. If she accepts the plea, she will sentence Myers at that time.
Myers, who was 17 at the time of the murder, is the latest defendant to plead guilty to charges in the murder and related crimes. The others include Muquan Cawthorne, 16, of Mount Ranier, Md.; Deon Jefferson, 18, of Landover, Md.; Gary Maye, 17, of Hyattsville, Md.; Immanuel Swann, 18, of Brentwood, Md., and Gary Whittaker, 20, of Hyattsville, Md. Cawthorne, Jefferson, Maye and Swann, like Myers, were under 18 at the time of the murder; the U.S. Attorney’s Office obtained their indictments after deciding to prosecute them as adults.
Cawthorne pled guilty to voluntary manslaughter while armed, armed robbery, and a firearms offense. Jefferson pled guilty to voluntary manslaughter while armed and armed robbery. Maye pled guilty to voluntary manslaughter while armed, armed robbery, and robbery. Swann pled guilty to voluntary manslaughter while armed and two counts of armed robbery. Whittaker pled guilty to voluntary manslaughter while armed, assault with a dangerous weapon, conspiracy, and a firearms offense. They have been in custody since their arrests last year and are to be sentenced on Dec. 13, 2013.
According to the government’s evidence, Myers and the other defendants were part of a group of nine people who conspired on Nov. 16, 2012 and Nov. 17, 2012 to commit robberies in the District of Columbia. Plans called for robbing people of their iPhones and other items of value. The group took a Metro train on the night of Nov. 16, 2012, from the West Hyattsville, Md. station to the Gallery Place/Chinatown station in Northwest Washington. From there, they took another train to the Woodley Park Metro station to begin their crimes. Within a matter of hours, Mr. Griffin would become a victim of the group twice: once, during a robbery in the Adams Morgan area, and finally, the attack at the Metro Station that ended with his death.
“In an act of pure cowardice, 17-year-old Chavez Myers snuck up behind Olijawon Griffin as he was fighting off three of Myers’s associates and stabbed him in the heart inside the Woodley Park Metro station,” said U.S. Attorney Machen. “Today Myers pled guilty to first-degree murder for his crime, and five others have also recently accepted responsibility for their roles in this brutal act of violence and the armed robberies that preceded it. We hope this prosecution sends an unambiguous message to young people tempted to join their friends to carry out robberies and other acts of violence in our city: think before you act because you will be prosecuted as an adult and held responsible for the destruction your actions bring to the lives of others.”
“This was a senseless crime, in which a young man lost his life at the hands of a group of thugs who were determined to rob and steal personal items from unsuspecting victims,” said Police Chief Lanier. “The Metropolitan Police Department and our law enforcement partners will not tolerate this in our city, and these criminals will be held accountable for their actions.”
“Thanks to our strong partnership with Metropolitan Police Department and the United States Attorney’s Office, we were able to ensure that the suspects were apprehended and would face justice,” said Metro Transit Police Chief Pavlik. “In this case, quick response and state-of-the-art digital evidence served the community well.”
According to the government’s evidence, after leaving the Metro station, Myers and the others in the group crossed the Duke Ellington Bridge to the Adams Morgan area to find targets.
The group decided to target Mr. Griffin shortly after midnight, early Nov. 17, 2012, attacking him near a gas station in the 1800 block of Adams Mill Road NW. Mr. Griffin was robbed of his Helly Hansen coat, hat, and iPhone. The nine assailants then walked back toward the Woodley Park Metro station, intending to take a train back to West Hyattsville.
Mr. Griffin and his two companions arrived at the Metro station shortly after the assailants. They approached the assailants in an attempt to get Mr. Griffin’s property back. According to the government’s evidence, the various assailants repeatedly punched, kicked and stomped one of Mr. Griffin’s companions while he was lying prone and defenseless on the floor of the station platform. Once this friend rose to his feet, the group again took him to the ground and repeatedly punched, kicked and stomped him.
Shortly after the attack on the friend ended, Myers went up to the mezzanine level of the station, where the kiosk and fare machines are located. Jefferson, Maye, Whittaker and Swann were among those who also went to the mezzanine level. Mr. Griffin had been attempting to draw the defendants to that level in an effort to get them away from his injured friend. As the confrontation continued, Myers came up from behind Mr. Griffin and stabbed Mr. Griffin, who was unarmed, once in the heart. Mr. Griffin died a short time later.
In announcing the pleas, U.S. Attorney Machen, Chief Lanier and Chief Pavlik commended the work of those who investigated the case from the Metropolitan Police Department and the Metro Transit Police Department. They also expressed appreciation to those who worked on the case from the District of Columbia Office of the Attorney General, including Deputy Attorney General Andrew Fois; Jennifer White, Chief of the Juvenile Section; Barbara Chesser and Linda Monroe, Assistant Chiefs of the Juvenile Section; Assistant Attorney General Marybeth Manfreda, and former Assistant Attorney General Anthony Crispino. The District of Columbia Office of the Attorney General handled the part of this case that involved charges against some of the juveniles who were apprehended after the attack.
U.S. Attorney Machen, Chief Lanier and Chief Pavlik also acknowledged the efforts of those who provided assistance from the U.S. Attorney’s Office, including Paralegal Specialists Alesha Matthews, Kwasi Fields, and Ethel Noble; Criminal Investigator John Marsh; Litigation Technology Specialists Leif Hickling, Will Henderson, and Paul Howell; Victim/Witness Advocate Jennifer Clark, and former interns Ryan Lipes, Flynn Burke, and Lauren Sparks.
Finally, they thanked Assistant U.S. Attorneys Justin Dillon, Kathleen A. Connolly, and Kevin F. Flynn, who investigated and prosecuted the case.
13-336
Tarpon Springs Man Sentenced to 15 Months in Prison for Mortgage FraudRead the Press Release
Tampa, Florida - U.S. District Judge James D. Whittemore yesterday sentenced Chad Allen Lazzari (45, Tarpon Springs) to 15 months in federal prison for wire fraud and making false statements to federally-insured banks. As part of Lazzari's sentence, the court also entered a money judgment in the amount of $670,982.65, the proceeds of the mortgage fraud offenses. In addition, he was also ordered to forfeit his interest in a specified cashier's check and a personal injury claim. Lazzari pleaded guilty on June 5, 2013.
According to court documents, in 2007 and 2008, Lazzari submitted and caused the submission of mortgage and home equity loan applications containing false and fraudulent statements to Regions Bank, SunTrust Bank, and Fifth Third Bank in the Middle District of Florida. In the loan applications, Lazzari fraudulently represented that he was a single man, when in fact he was married, and in some instances, submitted false income tax returns and other fraudulent documents in an effort to substantiate this claim and otherwise enhance the financial qualifications of the borrower on the loan applications. For example, on or about June 6, 2006, Lazzari purchased the residence located at 201 Fairmont Drive, Spring Hill, Florida 34610, as an investment property. In connection with purchase, he represented himself as a single man.
Slightly more than one year later, in or about August - September 2007, Lazzari prepared a fraudulent mortgage loan application in the name of his spouse, Lin Lin Liu, and submitted it to Homecomings Financial, LLC, in connection with his sale of the Fairmont Drive home to his spouse. The purpose of the sale was to avoid foreclosure of the investment property in his name. Among other things, the mortgage loan application in Lazzari's spouse’s name contained several material false statements. It did not disclose the fact that the seller and buyer were married, falsely reported that Lazzari's spouse was gainfully employed and making a sizable income, which was not true, included false statements about Lazzari's spouse's assets, and misrepresented the truth about his spouse's address. Homecomings Financial, LLC approved the fraudulent mortgage loan application in Lazzari's spouse’s then-name, Lin Lin Liu (changed shortly thereafter to Victoria Liu Lazzari). On September 7, 2007, Homecomings Financial, LLC wired $324,482.65 in mortgage loan proceeds. Lazzari's spouse never made a single mortgage payment, and the property was foreclosed upon.
On or about March 17, 2008, Lazzari submitted three different home equity loan applications (totaling $76,500), in varying amounts, to three separate banks, on a different residence. In each instance, Lazzari represented himself as single or unmarried with the intent to influence the actions of the banks on his loan applications. Lazzari failed to report to any one of the banks that he had made home equity loan applications to the other two banks, or that the Fairmont Drive home, which he had fraudulently sold to his spouse, was in foreclosure. Ultimately, Lazzari defaulted on all of these loans.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke.
Superior Ambulance and Owners Charged in Multi-Million Dollar Health Care Fraud SchemeRead the Press Release
PHILADELPHIA – An indictment was unsealed today charging Superior EMS Ambulance Company, operating from Huntingdon Valley, PA, its owner, Beana Bell, 31, and operator Vadim Fleshler, 32, both of Philadelphia, with conspiracy to commit health care fraud. According to the indictment, the case involves a scheme in which the defendants submitted more than $4.4 million in fraudulent claims to Medicare. The defendants were also charged with making false statements in connection with health care matters. The indictment was announced by United States Attorney Zane David Memeger, Special Agent-in-Charge Nick DiGiulio with Health and Human Services Office of Inspector General and FBI Special Agent-in-Charge Ed Hanko.
The indictment alleges that the defendants conspired to defraud Medicare by recruiting patients who were able to walk and could travel safely by means other than ambulance and who, therefore, were not eligible for ambulance transportation under Medicare requirements. It is alleged that the defendants, and others acting on their behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendants knew that the patients could be transported safely by other means and that many of them walked to the ambulance for transport. It is further alleged that the defendants themselves, or through others, paid illegal kickbacks to the patients as part of the scheme. The defendants allegedly billed Medicare for these ambulance services as if those services were medically necessary and, as a result of the allegedly fraudulent billing, the Medicare program sustained losses of more than $2.4 million for this medically unnecessary method of transportation.
If convicted, the defendants face substantial terms of imprisonment, fines and are subject to criminal forfeiture proceedings with possible exclusion from participating in federal health care programs; Superior EMS Ambulance Company faces significant financial penalties, including substantial criminal fines, restitution and forfeiture obligations.
The case was investigated by the U.S. Department of Health and Human Services, Office of the Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney M. Beth Leahy.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Stuart Morgan Pattie and Jesus Heriberto Ramirez-Soto Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on September 24, 2013, before Chief U.S. District Judge Dana L. Christensen, STUART MORGAN PATTIE, age 52, and JESUS HERIBERTO RAMIREZ-SOTO, age 44, residents of Troy, were sentenced in connection with their guilty pleas to conspiracy to possess with intent to distribute methamphetamine.
PATTIE was sentenced to:
Prison: 36 months
Special Assessment: $100
Supervised Release: 5 years
RAMIREZ-SOTO was sentenced to:
Prison: 120 months
Special Assessment: $100
Supervised Release: 5 years
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
PATTIE, RAMIREZ-SOTO, and Don Edward Lyle all lived in Troy. In early April 2013, undercover law enforcement agents and a confidential informant (CI) began to buy methamphetamine from RAMIREZ.
During the evening of April 5, 2013, the CI was with RAMIREZ and Lyle at RAMIREZ's home in Troy. The CI mentioned to RAMIREZ and Lyle that he had a friend who wanted to purchase methamphetamine.
The next day, on April 6, 2013, RAMIREZ called the CI and said that Lyle would be traveling to Kalispell with the methamphetamine. Later that evening, undercover agents met with Lyle in Kalispell. PATTIE also accompanied Lyle on the methamphetamine deal. The agents paid Lyle $5,400 for three ounces of methamphetamine and received an additional ounce from Lyle with the understanding that the agents still owed Lyle for the last ounce.
On April 11, 2013, the CI placed a call to RAMIREZ to set up another methamphetamine deal. RAMIREZ told the CI that he could provide the CI's friends with pounds of methamphetamine. The agents called RAMIREZ and agreed to meet on Saturday, April 13, 2013, in Havre in order to buy methamphetamine. RAMIREZ agreed to sell the agents two pounds of methamphetamine for $50,000.
That afternoon, RAMIREZ met an agent in a parking lot and said his friends would be there shortly. RAMIREZ then discussed possible future drug deals and left the parking lot. A half hour later, Lyle and PATTIE pulled up next to the agent. PATTIE got out of the car and got into the agent's car with the methamphetamine wrapped in a shirt. Agents then arrested RAMIREZ, PATTIE, and Lyle. Agents recovered more than 500 grams of a substance containing a detectable amount of methamphetamine.
Lyle pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that they will likely serve all of the time imposed by the court. In the federal system, they do have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the U.S. Department of Homeland Security - Homeland Security Investigations and the Montana Division of Criminal Investigation.
Social Security Claims Representative Charged with Two Counts of Bribery, Two Counts of ExtortionRead the Press Release
Memphis, TN – Montrell Levelle Arnold, 42, of Memphis, TN, was indicted yesterday by a federal grand jury on two counts of extortion and two counts of bribery, announced U.S. Attorney Edward L. Stanton III.
# # # #
According to the facts alleged in the indictment, on at least two occasions while Arnold was working as a Claims Representative for the United States Social Security Administration (SSA), he offered to “process” Supplemental Security Income (SSI) payment claims for individuals in exchange for a fee. Several SSI beneficiaries agreed to pay the defendant a fee to process the benefit payments.
After the benefit payments had been electronically deposited to the beneficiary’s electronic accounts, Arnold would contact the individuals by telephone and by text message to confirm receipt of the payment and to make arrangements to obtain his “processing fee.”
If convicted, Arnold faces up to 20 years in prison and a fine of up to $250,000 on each extortion charge, and up to 15 years in prison and a fine of up to $250,000 on each bribery charge. In addition, Arnold may be disqualified from holding any office of honor, trust or profit with the United States.
Investigators suspect that Arnold may have taken advantage of other individuals during his employment with the SSA. If anyone has any additional information, they are urged to contact the SSA Office of the Inspector General at 855-260-6353. This case is being investigated by the United States Social Security Administration, Office of the Inspector General. Assistant U.S. Attorney Leetra Harris is representing the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Shyann Marie Dupree Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on September 25, 2013, before Chief U.S. District Judge Dana L. Christensen, SHYANN MARIE DUPREE, a 36-year-old resident of Poplar and an enrolled member in a federally-recognized tribe, was sentenced to a term of:
Prison: 18 months
Special Assessment: $100
Restitution: $11,899.97
Supervised Release: 3 years
DUPREE was sentenced in connection with her guilty plea to burglary.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On April 18, 2012, DUPREE broke into a house on the Fort Peck Indian Reservation with three others when they knew the homeowner was out of town. The group stole televisions, jewelry, and other items. DUPREE admitted to entering the house and filling a suitcase with purses, while others removed televisions and placed them in a vehicle waiting outside the house. DUPREE admitted that another individual helped her sell the purses and that DUPREE used the money to buy pills.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that DUPREE will likely serve all of the time imposed by the court. In the federal system, DUPREE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Fort Peck Tribes Criminal Investigation Division and the Poplar Police Department.
Second Highest Chiropractic Medicare Biller in California Biller Pleads Guilty to Health Care FraudRead the Press Release
LOS ANGELES – A San Fernando Valley chiropractor, who was the second highest Medicare biller in California for chiropractic services, pled guilty yesterday to healthcare fraud in violation of 18 U.S.C. § 1347.
Between 2005 and 2012, Houshang Pavehzadeh aka “Danny Paveh” (41), owner of Sylmar Physician Medical Group, Inc. – a storefront chiropractic clinic located in a strip mall – defrauded Medicare by billing for patients he never treated.
The eleven count indictment alleges that Pavehzadeh submitted over $1.7 million in false and fraudulent claims to Medicare and was paid a little over $1 million on these claims. As part of his guilty plea, Pavehzadeh admitted that, in an effort to conceal his fraud from Medicare auditors, he staged an early-morning car jacking outside his office and falsely reported to the Los Angeles Police Department that his patient files had been stolen.
“Those persons who seek to bilk the Medicare Program impact both our health care delivery system and the American consumer,” said United States Attorney André Birotte Jr. “Here, the defendant not only tried to bilk the system to the tune of more than $1.7 million, he also had the audacity to try and conceal his criminal activity by filing a bogus police report with the LAPD.”
“Health care fraud in and of itself is a serious offense. Not content to stop there, however, Mr. Pavehzadeh sought to conceal that crime by committing yet another -- filing a false police report,” said Glenn R. Ferry, Special Agent in Charge for the Los Angeles Region of the Office of Inspector General for the Department of Health of Human Services. “Those intent on breaking these laws should know that through the work of our special agents and auditors, OIG remains committed to seeking justice.”
Pavehzadeh faces a maximum sentence of ten years imprisonment, a fine of $250,000 and three years of supervised release. United States District Judge Manuel L. Real is scheduled to sentence defendant on January 14, 2014.
Release No. 13-119
Schuyler County Man Sentenced on Methamphetamine ChargesRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Chad Speicher, 29, of Beaver Dams, N.Y., who was convicted of conspiracy to manufacture methamphetamine, was sentenced to 46 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that the defendant, together with co-conspirators Shawn Rickard and John Barton, as well as others, conspired to manufacture methamphetamine in Millport, N.Y., from 2009 to May 18, 2011. On this date, members of the New York State Police, Schuyler County Sheriff’s Office, Schuyler County District Attorney’s Office, Village of Watkins Glen Police Department and the Drug Enforcement Administration executed a state court-authorized search warrant at John Barton’s residence based on an ongoing investigation.
In a shed on Barton’s property, law enforcement officers discovered an active methamphetamine laboratory which was in the process of producing methamphetamine, as well as methamphetamine and powder substances which tested positive for the presence of methamphetamine and pseudoephedrine. In the same shed, law enforcement officers also recovered multiple firearms, one of which was a handgun which officers located in Barton’s backpack, along with methamphetamine and over $8,000 in U.S. Currency. Officers also recovered marijuana from the house located on the property.
John Barton was sentenced to 180 months in prison on September 24, 2013. Shawn Rickard was sentenced to eight years in prison on September 18, 2013.
The sentencing is the culmination of an investigation on the part of the Schuyler County District Attorney’s Office, under the direction of District Attorney Joseph Fazzary, Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Wayne C. Olson, the Schuyler County Sheriff’s Department, under the direction of Sheriff William Yessman, and the Watkins Glen Police Department, under the direction of Chief Thomas R. Struble.Ross Twp. Man Admits Cashing $304K of Deceased Mother’s Social Security BenefitsRead the Press Release
PITTSBURGH - A Ross Township resident pleaded guilty in federal court to a charge of theft of government money, United States Attorney David J. Hickton announced today.
Chauncey Clinton, 65, pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that from June 1, 1973, to April 3, 2012, Chauncey Clinton converted to his own use $304,853.00 in Social Security Title II, Old Age, Survivor’s Disability Insurance benefit payments of his mother, Clara Clinton, who died on May 7, 1973, benefits to which he knew he was not entitled.
Judge Hornak scheduled sentencing for Jan. 23, 2014, at 1:30 p.m. The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Court released Clinton on a $10,000 unsecured bond pending sentencing.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General, conducted the investigation that led to the prosecution of Clinton.
Rosebud Man Convicted of Assaulting and Resisting Rosebud Tribal OfficersRead the Press Release
United States Attorney Brendan V. Johnson announced that Lawrence Gary, age 36, of Rosebud, South Dakota, appeared before U.S. District Magistrate Judge Mark A. Moreno on September 19, 2013, and pled guilty to a Superseding Information that charged him with Assaulting, Resisting, or Impeding Certain Officers.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie Ruettgers.
The maximum penalty upon conviction is 1 year in custody, a $100,000 fine, restitution, and a $25 assessment to the Federal Crime Victims Fund.
The charge relates to an incident that occurred on July 25, 2012, when Rosebud Sioux Tribe Law Enforcement Officers responded to a complaint that the Defendant was driving while intoxicated. As a result, Gary was asked to step out of the car and perform sobriety tests. The officers had to pull Gary from the car and place handcuffs on him. Gary was non-compliant, spun away from the officers, and lunged toward one of the officers before being restrained again and placed in a patrol car.
A presentence investigation was ordered, and a sentencing date was set for November 25, 2013. Gary was remanded to the custody of the U.S. Marshals Service pending sentencing.Reading Man Sentenced to Seven Years for Role in Berks-Schuylkill County Drug RingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a 24-year-old Reading man was sentenced today by Senior U.S. District Court Judge A. Richard Caputo to serve seven years in prison for participating in a drug trafficking conspiracy.
According to United States Attorney Peter J. Smith, Isaac Villasenor previously pleaded guilty to conspiracy to distribute more than 500 grams of cocaine and more than 500 grams of methamphetamine. The drug conspiracy operated in the Schuylkill and Berks County area between August and November of 2011.
Villasenor was indicted by a federal grand jury in November 2011, as a result of an investigation by the Drug Enforcement Administration.
Two co-defendants, Jose Sandoval-Martinez and Ivan Villasenor, previously pleaded guilty to participating in the conspiracy. Sandoval-Martinez was sentenced to 10 years in prison. Ivan Villasenor was sentenced to six years in prison.
Judge Caputo also ordered that Isaac Villasenor be placed on five years of supervised release after serving his prison sentence.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Pike County Man Pleads Guilty to Receiving and Distributing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 49-year-old Dingmans Ferry resident pleaded guilty Tuesday to receiving and distributing child pornography before U.S. District Court Judge Malachy E. Mannion.
According to United States Attorney Peter J. Smith, the defendant, Richard A. Lewis, was indicted by a federal grand jury in May 2013 for using a computer to receive child pornography from a resident of Ontario, Canada, and distributing the child pornography to others during January 2013 to May 2013.
The charge against Lewis resulted from an investigation by Homeland Security Investigators and Ontario Provincial Police.
Under the terms of a plea agreement, if accepted by the court, Lewis will be sentenced to 15 years in prison to be followed by lifetime supervised release. He will also be subject to the sex offender registration and notification requirements of federal law.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Philadelphia La Cosa Nostra Associate SentencedRead the Press Release
PHILADELPHIA – Robert Ranieri, 38, of Glendora, NJ, was sentenced today to serve 12 months and one day in prison for his participation in loan sharking activities on behalf of the Philadelphia La Cosa Nostra (LCN) Family.
In addition to his prison term, U.S. District Court Judge Eduardo Robreno ordered Ranieri to pay a $1,000 fine and ordered three years of supervised release.
On June 13, 2013, Ranieri pleaded guilty to conspiring with Philadelphia LCN Family capo Anthony Staino and others to make a usurious loan to an undercover FBI agent and to use threats of violence to collect payments on the loan.
The case was investigated by the FBI, the Internal Revenue Service-Criminal Investigation, the Pennsylvania State Police, the New Jersey State Police, the Philadelphia Police Department, the U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations and the U.S. Department of Labor’s Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.
The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Operators of Lowell Temp Agency Charged with Tax and Insurance FraudRead the Press Release
BOSTON – Four Lowell residents who operated a temporary employment agency have been charged with running an off-the-books payroll scheme, paying employees millions of dollars, evading employment taxes and workers compensation premiums.
Margaret Mathes, 67, Boseba Prum, 47, Sam Pich, 63, and Thaworn Promket, 52, have each been charged with conspiracy to defraud the Internal Revenue Service and to commit mail fraud and to violating laws against structuring monetary transactions to avoid reporting requirements. Mathes is also charged with two counts of structuring monetary transactions. Prum is also charged with 10 counts of filing false employment tax returns, six counts of mail fraud and two counts of structuring monetary transactions. Pich is also charged with 17 counts of assisting the filing of false employment tax returns, six counts of mail fraud and two counts of structuring monetary transactions. Promket is also charged with seven counts of filing false employment tax returns, six counts of mail fraud and two counts of structuring monetary transactions.
According to the indictment, the defendants are family members who together ran a temporary employment agency providing both short-term and long-term labor for client companies in the packaging and food services industries. Between 2004 and October 2008 the agency operated under the name International Temp Agency; from October 2008 through 2009 it operated under the name JP Company. Between 2004 and 2009, the defendants reported approximately $2.2 million in wages to the IRS. The indictment charges, however, that the defendants= total payroll was approximately $28 million during that period. According to the indictment, the defendants failed to withhold and pay employment taxes and worker=s compensation insurance premiums on these unreported wages.
In order to meet their outsized cash payroll without triggering the filing of currency transaction reports the defendants maintained multiple bank accounts at various institutions and cashed approximately 4,383 checks in amounts less than $10,000. The indictment also charges that defendants grossly understated their payroll in response to inquiries from their workers' compensation insurance provider, under reporting the number of clients and employees on applications for insurance and during audits conducted by the insurer. As a result, their workers compensation insurance premiums were fraudulently reduced by approximately $850,000 between 2004 through 2010.
If convicted, the maximum prison sentences that could be imposed for each count of the indictment are as follows: five years in prison for conspiracy; three years in prison for filing or procuring false tax returns; 20 years in prison for mail fraud; and 10 years in prison for structuring of financial transactions.
U.S. Attorney Carmen M. Ortiz; John G. Collins, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Andrew Lelling of Ortiz=s Economic Crimes Unit.
The details in the Indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.Oakland Man Sentenced to Twenty-Three Years in Prison for Robbery and CarjackingRead the Press Release
OAKLAND - Ismael Eduardo Axtle was sentenced on September 23, 2013, to 276 months in federal prison for carjacking, robbery, possession of methamphetamine for sale, being a felon in possession of a firearm, and brandishing a firearm in furtherance of a crime of violence, United States Attorney Melinda Haag announced.
According to the plea agreement, Axtle, 31, of Oakland, Calif., and co-defendant Patrick Fiammetta-McConnell robbed a parking garage in San Francisco and stole an Acura TL from the garage on July 27, 2011. On August 5, 2011, Axtle carjacked a BMW from a driver in San Francisco. On September 9, 2011, Axtle carried methamphetamine and a firearm in the carjacked BMW down to Turlock, in the Eastern District of California. On November 17, 2011, Axtle and unknown co-conspirators robbed a massage parlor at gunpoint in Petaluma. On November 18, 2011, Axtle carjacked a family in an SUV at gunpoint during a police chase in Oakland that involved several law enforcement agencies.
Axtle also admitted to possession of two firearms and hundreds of rounds of ammunition in a storage locker in Oakland.
“The prosecution of this case illustrates the strong commitment the United States Attorney’s Office has in reducing violence caused by guns and the victimization of innocent people in the City of Oakland and in the Northern District of California as a whole,” stated U.S. Attorney Melinda Haag. “We will continue to combine our resources, skills, and efforts in partnership with federal and local law enforcement toward this important goal.”
“This case is indicative of how violent criminals use firearms to terrorize our citizens and subject them to danger,” stated Special Agent in Charge Joseph M. Riehl. “ATF will continue to focus on the suspects who commit these heinous crimes.”
Axtle, pleaded guilty on May 14, 2013, to two counts of carjacking, in violation of 18 U.S.C. § 2119; two counts of interference with commerce by robbery, in violation of 18 U.S.C. § 1951(a); possession with intent to distribute 50 grams or more of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1); being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1); and brandishing a firearm in furtherance of a crime of violence, in violation of 18 U.S.C. § 924(c)(1)(A)(ii).
The Honorable Saundra Brown Armstrong, United States District Court Judge, handed down the 276-month. Judge Armstrong also ordered Axtle to forfeit all firearms and ammunition, and to serve a five-year term of supervised release during which he may be searched by any federal, state, or local law enforcement officer with or without cause. Axtle’s co-defendant, Fiammetta-McConnell, has been sentenced to 157 months in federal prison for his role in the January 27, 2011, robbery and carjacking, and other unrelated crimes.
Judge Armstrong ordered Axtle to begin serving his prison sentence immediately.
Brigid Martin is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kathleen Turner. The conviction and sentence were the result of an investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Oakland Police Department, Alameda County Regional Auto Theft Task Force, California Highway Patrol, San Francisco Police Department, Petaluma Police Department, and Turlock Police Department.
(Axtle superseding information )
North Dakota Man Pleads Guilty to Possession of A Firearm by A Prohibited PersonRead the Press Release
United States Attorney Brendan V. Johnson announced that Virgil Running Bear, Jr., age 40, of Bismarck, North Dakota, appeared before U.S. District Judge Charles B. Kornmann on September 23, 2013, and pled guilty to Possession of a Firearm by a Prohibited Person.
The maximum penalty upon conviction is 10 years of imprisonment and/or a $250,000 fine, 3 years of supervised release and an additional 2 years of supervised release upon revocation, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an incident wherein on or about December 10, 2012, the Edmunds County Sheriff’s Office was called to investigate a report of a vehicle in a ditch near Ipswich, South Dakota. The sheriff’s deputy discovered the defendant’s vehicle. After receiving Running Bear’s driver’s license and registration, the deputy learned that Running Bear had a revoked license and was on federal probation. With permission, the deputy searched Running Bear’s vehicle and found three firearms and assorted ammunition. All the weapons found in Running Bear’s possession were transported through interstate commerce and functioned as designed.
The investigation was conducted by the Bureau of Alcohol, Firearms and Explosives and the Edmunds County Sheriff’s Office. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Running Bear was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for December 30, 2013.Newport News Man Sentenced to 105 Months for Fraud, Money Laundering, and Felon-In-Possession ConvictionsRead the Press Release
NORFOLK, Va. – James Allen Sutton, 33, of Newport News, Va., was sentenced yesterday to 105 months in prison followed by 3 years of supervised release, for his role in a conspiracy to defraud the United States, money laundering, and illegally possessing a firearm as a felon.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, Thomas J. Kelly, Special Agent of the Internal Revenue Service Criminal Investigations Division,Washington D.C. Field Office, and Daniel Woloszynowski, Resident Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Norfolk Field Office, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith.
Sutton previously pleaded guilty on June 10, 2013. According to court documents, in April of 2011, the Newport News Police Department received a crime stoppers tip reporting that Sutton, a convicted felon, was distributing illegal drugs. Following the tip, detectives with the Newport News Police Department executed a search warrant on Sutton’s residence. Inside Sutton’s apartment, the officers found four pounds of marijuana, a handgun, digital scales and packaging materials commonly used in the sale of marijuana.
The investigation determined that from 2006 through 2010, Sutton conspired with a Hampton business owner, Eleanor Murphy, to disguise the proceeds of his marijuana distribution business as legitimate earnings from Murphy’s construction business, Poor Boy’s Construction.
Sutton needed someone to legitimize his lifestyle, and he needed to show legitimate income in order to file tax returns, obtain mortgage loans and qualify for credit cards. Murphy, who was convicted in 2012 for her role in the conspiracy, provided Sutton with false form 1099s representing income that she never paid to Sutton. Sutton used these 1099s when he filed his own individual income tax returns, in effect, masking the drug money as legitimate income.
An in-depth financial investigation showed that Sutton used the proceeds from his drug business to make hundreds of thousands of dollars’ worth of expenditures related to travel, gambling, and the purchase of expensive clothing, jewelry and automobiles.
This case was investigated by the Internal Revenue Service, Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Newport News Police Department. Managing Assistant United States Attorney Howard Zlotnick prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Newark Man Charged in 19-Count Indictment with Multiple Armed Robberies of New Jersey StoresRead the Press Release
NEWARK, N.J. – A federal grand jury today returned a 19-count indictment against a Newark, N.J. man this morning in connection with a series of commercial establishment robberies in Union, Essex, and Bergen Counties, U.S. Attorney Paul J. Fishman announced.
Jamar Darby (a/k/a Rhino) 26, is charged with one count of conspiring to commit a Hobbs Act robbery, nine substantive counts of Hobbs Act robbery, and nine counts of using a firearm during a crime of violence.
Darby was previously arrested on a criminal complaint charging him with committing a Hobbs Act robbery and using a firearm during a crime of violence in connection with the robbery of a Subway Restaurant in Verona.
According to the indictment and other documents filed in this case:
On May 20, 2013, Darby and two other individuals allegedly entered a Subway Restaurant in Verona wearing dark hoodies, face masks, and gloves. Darby and another individual each brandished a handgun. After Darby and another robber restrained a Subway employee with plastic zip ties, Darby and his co-conspirators emptied the cash registers and fled.
The indictment also charges Darby in connection with the following robberies between December 2012 and May 2013:
Linden Stationary
Linden
Feb. 1, 2013
Newark
Feb. 1, 2013
Shoppers Express
Belleville
Feb. 2, 2013
Krauszers
Bloomfield
Feb. 13, 2013
Pat’s Deli
Newark
Feb. 19, 2013
Smashburger
Paramus
March 16, 2013
Krauszers
Bloomfield
March 29, 2013
South Wood Discount Liquor
Linden
April 17, 2013
Darby allegedly brandished a handgun in all of the robberies, and he and his conspirators stole cash, cigarettes, and other items from their victims.
The Hobbs Act charges each carry a maximum penalty of 20 years in prison. The charge of brandishing a firearm during a crime of violence carries a maximum penalty of life in prison and a mandatory minimum sentence of seven years in prison for the first offense, which must run consecutively to any other prison term. For each subsequent offense, the charge of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of 25 years in prison, which must run consecutively to any other prison term. Each count also carries a maximum fine of $250,000 or twice the gross gain or loss arising out of the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s indictment. He also thanked the Belleville, Bloomfield, Kearny, Linden, Maplewood, Newark, Paramus, Verona and West Orange Police Departments, along with the N.J. State Police and the Essex County Prosecutor’s Office for their work on this case.
The government is represented by Assistant U.S. Attorneys Jamari Buxton and Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the indictment are merely accusations and each defendant is considered innocent unless and until proven guilty.
13-389
Defense Counsel: Carl Herman Esq., West Orange, N.J.
Darby Indictment
New Orleans Man, Michael Larrieu, Sentenced for Failing to Register as Sex OffenderRead the Press Release
MICHAEL LARRIEU, age 25, a resident of New Orleans, Louisiana, was sentenced yesterday by U.S. District Judge Jay C. Zainey to twelve months in prison for failing to register as a sex offender, announced U.S. Attorney Kenneth Allen Polite, Jr.
According to documents filed in federal court, in 2007, LARRIEU pled guilty to possession of child pornography in U.S. District Court, Eastern District of Louisiana. LARRIEU was sentenced to forty (40) months imprisonment followed by a life time of supervised release. As a result of LARRIEU=s conviction, he was required to register pursuant to the Sex Offender Registration and Notification Act.
On February 27, 2013, LARRIEU absconded from the Volunteers of America Re-Entry Residential Center in New Orleans where he was completing an unrelated sentence. Approximately a month later, on March 25, 2013, the United States Marshals Service (“USMS”) located and arrested LARRIEU in Laredo, Texas. LARRIEU admitted to the USMS at the time of his arrest that he knew he had a duty to register as a sex offender. LARRIEU told the USMS he did not notify or request information on sex offender laws in Texas because he knew he was a fugitive and because he did not want to go back to prison.
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 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 sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the United States Marshals Service and prosecution of this case is being handled by Project Safe Childhood Coordinator and Strike Force Chief, Assistant U. S. Attorney Brian M. Klebba.
New Jersey-Based Financial Advisor Sentenced to 27 Months in Prison for Defrauding Elderly InvestorsRead the Press Release
TRENTON, N.J. – A Somerset County, N.J.-based financial advisor was sentenced today to 27 months in prison for stealing $138,000 from two elderly investors and funding his lavish lifestyle with money he claimed to be investing in conservative securities and his business, U.S. Attorney Paul J. Fishman announced.
Ralph A. Saviano, 72, of Bridgewater, N.J., previously pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with wire fraud.
According to documents filed in this case and statements made in court:
Saviano, an investment advisor who had worked in the financial industry for more than 40 years, targeted clients through his association with Centaurus Financial Inc., and later through Saviano Financial Group (SFG), from as early as July 2007 through October 2012.During this time, Saviano had approximately 300 clients, many of whom were unsophisticated investors between the ages of 60 and 85, whom he had known for many years and who trusted his financial experience and advice. Saviano admitted he targeted clients he knew were about to receive significant amounts of cash, such as maturing certificates of deposit (CDs), and proposed that they invest those funds in low-risk investments or in his business, SFG. Saviano said he would use these “business loans” solely for business expenses.
Saviano admitted that in May 2012, an 85-year-old client gave him approximately $63,000 from a mature CD that she was told would be invested in two investment funds. Saviano accompanied the client to her bank to redeem the CD and instructed her make the proceeds from the CD payable to him. In June 2012, another of Saviano’s clients – 80 years old and suffering from cancer – gave Saviano approximately $75,000 she inherited from a recently deceased relative, making the check payable to “Cash” with the words “financial investment” in the memo field.
Instead of doing as he claimed, Saviano used the funds to repay prior “loans” from other clients in Ponzi-scheme fashion, and to pay for various personal expenses, including: at least $33,000 for granite countertops and other home improvements, $18,000 in cash payments to himself and family members, $10,000 in personal mortgage and rent payments, and thousands more in jewelry, clothing, a family vacation to Aruba and a theater donation.
At the plea hearing on June 5, 2013, Judge Wolfson entered a consent judgment and order of forfeiture in the amount of $699,926.51, which constitutes the proceeds Saviano obtained from his known investor victims as a result of his offense.
In addition to the prison term, Judge Wolfson sentenced Saviano to three years of supervised release and ordered restitution of $699,926.51.
In a parallel investigation, the U.S. Securities and Exchange Commission on Sept. 6, 2013, issued an order instituting settled administrative proceedings against Saviano. In its order, the SEC barred Saviano from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization. It also barred him from participating in any offering of a penny stock, including: acting as a promoter, finder, consultant, agent or other person who engages in activities with a broker, dealer or issuer for purposes of the issuance or trading in any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock.U.S. Attorney Fishman praised special agents of the FBI, under the direction of Aaron T. Ford in Newark, for the investigation leading to today’s sentence. He also thanked the SEC’s New York office for its assistance with the investigation.
The government is represented by Assistant U.S. Attorney Aaron Mendelsohn of the U.S. Attorney’s Office Economic Crimes Unit and Evan Weitz of the office’s Asset Forfeiture and Money Laundering Unit in Newark.
If you believe you are a victim of or otherwise have information concerning this alleged scheme, you are encouraged to contact the FBI at 973-792-3000.
This case was brought in coordination with President Barack Obama’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.
13-390
Defense counsel: Eric R. Breslin Esq., Newark, N.J
New Jersey Man Pleads Guilty to Sexually Assaulting Colleague During Business Trip to the District of Columbia-Defendant and Victim Were Here for A Trade Show-Read the Press Release
WASHINGTON – William A. Sipper, 46, of Ramsey, N.J., pled guilty today to sexually assaulting an intoxicated business colleague while in the District of Columbia on a business trip, U.S. Attorney Ronald C. Machen Jr. announced.
Sipper pled guilty in the Superior Court of the District of Columbia to one count of misdemeanor sexual abuse in an Alford plea. Under such a plea, the defendant does not admit the allegations, but agrees that the government has enough evidence to secure a conviction. In this case, Sipper contended that he did not recall what had happened at the time of the offense, but conceded that the government had sufficient evidence with which to convict him. He is scheduled to be sentenced by the Honorable Russell F. Canan on Dec. 13, 2013.
According to the government’s factual proffer, as of Nov. 12, 2010, Sipper was the chief operating officer of a beverage company. That company had hired the victim to work as a model at a trade show that was taking place in the District of Columbia. Sipper, the victim and others from the company were in the area to attend that trade show, and some of them, including Sipper and the victim, were staying at a hotel in the 1200 block of K Street NW.
After a night of eating and drinking on the part of the defendant, the victim and some of the company’s other employees, Sipper asked the victim whether she wanted to work at two upcoming trade shows in Los Angeles and Las Vegas. When she said that she did, he asked her to come to his hotel room so that he could book her airline tickets for those events. She agreed, and sat on one of the beds in Sipper’s hotel room as he booked those tickets. That was the last thing the victim remembered until she awoke to find Sipper sexually assaulting her.
When the victim finally succeeded in getting the defendant off of her, she fled to her own hotel room on another floor and called her mother and boyfriend to report what had happened. They encouraged her to call 911, which she did.
As part of the victim’s medical examination, her blood alcohol content was determined to be quite high. Initially, Sipper denied that he had engaged in any sexual contact with the victim. However, DNA testing of semen found in the victim’s underwear showed that – at each pertinent location that could be tested – there was a match with the defendant’s DNA.
In announcing today’s plea, U.S. Attorney Machen acknowledged the work of officers from the Metropolitan Police Department’s Sexual Assault Unit. He also thanked those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Jason Manuel and Victim/Witness Advocate Melissa Milam. Finally, he commended the efforts of Assistant U.S. Attorneys Heide Herrmann, Lindsay Suttenberg and Peter V. Taylor, who prosecuted this case; and Assistant U.S. Attorney Sharon A. Sprague, who handled an interlocutory appeal in this case.
13-337New Jersey Leaders and Members of Violent, International Street Gang Indicted for Racketeering ConspiracyRead the Press Release
Plainfield-based Gang Allegedly Supported the Enterprise with Murder, Extortion, Plots to Kill Witnesses and a Law Enforcement Officer, and Sexual Assault
NEWARK, N.J. – Three former leaders of a New Jersey branch of the violent international street gang “La Mara Salvatrucha” – including its founding member – are charged with racketeering and murder in an indictment that also charges 11 other alleged members of the gang with related crimes, U.S. Attorney Paul J. Fishman announced today.
Santos Reyes-Villatoro, a/k/a “Mousey,” allegedly founded the “Plainfield Locos Salvatruchas” (PLS) – a subset, or “clique” – of La Mara Salvatrucha in the 1990s and served as its leader until his arrest in 2009 for attempted murder. Also known as MS-13, La Mara Salvatrucha is composed largely of Salvadorans and Salvadoran immigrants. Two other former leaders of the local PLS clique, Mario Oliva, a/k/a “Zorro,” and Roberto Contreras, a/k/a “Demonio,” are also charged in a 26-count indictment returned by a federal grand jury.
In all, the indictment charges 14 alleged members of the gang with racketeering conspiracy and a host of other violent crimes.
“The indictment describes an extraordinarily dangerous criminal enterprise whose entire reason for being revolves around imposing its leaders’ will through violence and intimidation,” U.S. Attorney Fishman said. “They have inflicted on the people of Plainfield and surrounding areas a reign of terror, backed up by physical assaults and murders. No community should have to endure such lawlessness.”
“The brazenness of the conduct charged in today’s indictment is deeply troubling,” Acting Union County Prosecutor Grace H. Park said. “The defendants allegedly showed no reluctance to react to perceived or real slights with immediate and reckless violence – and when they were caught, they plotted to retaliate against those who they believed to be responsible. Combatting gang-related crimes in Plainfield and all of our communities is one of the top priorities of this office, and it is reflected in today’s charges against the leaders of a particularly violent criminal enterprise.”
The federal indictment, which charges members of PLS with a racketeering conspiracy, four murders, multiple conspiracies to commit murder, extortion, robbery and a variety of other crimes, is the culmination of a three-year investigation that started in the Union County Prosecutor’s Office and expanded to include other local, state and federal agencies, including the Department of Homeland Security and the FBI. Among those named in the indictment are individuals who were arrested and charged with state crimes in the summer of 2011. Today’s indictment incorporates many of the acts charged at the state level and adds additional criminal activity uncovered during the subsequent investigation.
All but one of the defendants are currently in custody; Walter Yovany-Gomez remains at large. Those in custody are scheduled to make their initial appearances later today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the indictment:
The PLS clique was founded in the mid-1990s by Reyes-Villatoro and operated in New Jersey in Union, Somerset and Middlesex counties. Reyes-Villatoro served as “first word,” or leader, of the group until he was arrested in 2009 and charged with attempted murder. The first word is responsible for “greenlighting,” or authorizing, all murders committed by members of the clique.
Reyes-Villatoro relinquished the position to his “second word,” or deputy, Oliva, who held the position until he allegedly murdered a member of MS-13 in February 2010 and fled New Jersey. Contreras then took over. He is implicated in the sexual assault with Oliva of two underage girls.
The indictment charges numerous violent acts committed by PLS members as part of the racketeering conspiracy, some of which targeted members of rival gangs, such as the Latin Kings and the 18th Street gang, and some of which targeted MS-13 members perceived as being disloyal.
Among the charges are four gang-related murders:- Feb. 8, 2009, Julian Moz-Aguilar, a/k/a “Humilde,” allegedly murdered a Latin King (described in the indictment as Victim 5) at Reyes-Villatoro’s instruction;
- Feb. 27, 2010, Oliva and another MS-13 member allegedly murdered a member of MS-13 (Victim 10) who had been previously “greenlighted” by Oliva;
- Nov. 11, 2010, Hugo Palencia, a/k/a “Taliban,” allegedly instructed another MS-13 member to fire a gun at a rival gang member, which resulted in the death of another individual (Victim 11) near a high school in Plainfield, N.J.; and
- May 8, 2011, Cruz Flores, a/k/a “Bruja,” and Walter Yovany-Gomez, a/k/a “Cholo,” allegedly murdered an individual (Victim 15) because they believed the person was associating with the rival 18th Street gang.
“Today, HSI and our law enforcement partners have struck a serious blow to the core of this gang organization,” Andrew McLees, special agent in charge of ICE, Homeland Security Investigations (ICE-HSI) Newark, said. “MS-13 gang members and their associates are serious career criminals who have a callous disregard for human life. HSI is determined to remove the MS-13 menace from New Jersey’s communities.”
“Today’s indictment is the result of a long-term, multi-agency investigation,” Aaron T. Ford, FBI special agent in charge in Newark, said. “Dedicated personnel from agencies at all levels of government worked in unison to combat this dangerous and violent criminal enterprise. This cooperation is, and will continue to be, a critical factor for successfully defending threats that endanger the citizens of New Jersey.”
In 2011, law enforcement arrested a number of PLS members in Plainfield. While detained at the Union County Jail, PLS members plotted to retaliate against those they believed were responsible for their arrest, including witnesses, law enforcement and fellow gang members they suspected were cooperating with the government. PLS members allegedly sought revenge against a Plainfield detective involved in the case by planning to firebomb the residence of the detective’s mother.
Six defendants – Reyes-Villatoro, Oliva, Julian Moz-Aguilar, Hugo Palencia, Cruz Flores, and Walter Yovany-Gomez – are charged with murder in aid of racketeering, which is punishable by a mandatory sentence of life in prison. The charge is a death penalty-eligible offense subject to a decision by the U.S. Attorney General. A complete chart outlining the counts per defendant and maximum potential penalties is attached, as is a chart outlining the overt acts charged in the indictment.
U.S. Attorney Fishman credited special agents of ICE-HSI, under the direction of Special Agent in Charge McLees; and the FBI, under the direction of Special Agent in Charge Ford. Fishman specifically thanked the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Park, for long, close collaboration on the case. He also thanked the Somerset County Prosecutor’s Office, under the direction of Prosecutor Geoffrey D. Soriano; and the Middlesex County Prosecutor’s Office, under the direction of Acting Prosecutor Andrew C. Carey, for their roles. He also acknowledged the U.S. Attorney’s Offices for the Eastern District of Virginia and the District of Maryland for their assistance in the ongoing investigation.
The government is represented by Assistant U.S. Attorneys James M. Donnelly and Andrew J. Bruck of the U.S Attorney’s Office Organized Crime/Gangs Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
13-388
Maximum Penalties
U.S. v. Reyes-Villatoro, et al.Count
Charge
Defendants
Maximum Penalty
Racketeering Conspiracy
Reyes-Villatoro, Santos, 40
Oliva, Mario, 26
Contreras, Roberto, 25
Moz-Aguilar, Julian, 26
Palencia, Hugo, 21
Garcia, Jose, 21
Portillo-Fuentes, Ruben, 21
Ramirez, Esau, 22
Mejia, Kelvin, 21
Mejia, Franklin, 22
Orellana-Carranza, Julio, 25Life in prison
(Reyes-Villatoro, Oliva, Moz-Aguilar, Palencia, Flores, and Yovany-Gomez)20 years
2.
(all other defendants)Murder in Aid of Racketeering (Victim 5)
Reyes-Villatoro
Moz-AguilarDeath eligible; mandatory life sentence
3.Use of Firearm in Violent Federal Crime (Victim 5)
Reyes-Villatoro
Moz-AguilarLife in prison; 10-year mandatory minimum
4.Murder Resulting from Federal Firearm Crime (Victim 5)
Reyes-Villatoro
Moz-AguilarDeath eligible
5.Assault with a Dangerous Weapon in Aid of Racketeering (Victim 6, Victim 7)
Reyes-Villatoro
K. Mejia20 years
6.Use of Firearm in Violent Federal Crime (Victim 6, Victim 7)
Reyes-Villatoro
K. Mejia20 years; 10-year mandatory minimum
7.Threat to Commit Sexual Assault (Victim 8, Victim 9)
Oliva
Contreras5 years
8.Murder in Aid of Racketeering (Victim 10)
Oliva
Death eligible; mandatory life sentence
9.Use of Firearm in Violent Federal Crime (Victim 10)
Oliva
Life in prison; 10-year mandatory minimum
10.Murder Resulting from Federal Firearm Crime (Victim 10)
Oliva
Death eligible
11.Accessory After the Fact to Murder in Aid of Racketeering (Victim 10)
Contreras
15 years
12.Murder in Aid of Racketeering (Victim 11)
Palencia
Death eligible; mandatory life sentence
13.Use of Firearm in Violent Federal Crime (Victim 11)
Palencia
Life in prison; 10-year mandatory minimum
14.Murder Resulting from Federal Firearm Crime (Victim 11)
Palencia
Death eligible
15.Murder-for-Hire Conspiracy
Garcia
Palencia10 years
16.Interstate Travel with Intent to Commit Murder-for-Hire
Garcia
10 years
17.Assault with a Dangerous Weapon in Aid of Racketeering (Victim 14)
Garcia
20 years
18.Conspiracy to Commit Murder in Aid of Racketeering (Victim 15)
Flores, Cruz, 27
Yovany-Gomez, Walter, 29
K. Mejia10 years
19.Murder in Aid of Racketeering (Victim 15)
Flores
Yovany-GomezDeath eligible; mandatory life sentence
20.Conspiracy to Commit Murder in Aid of Racketeering
Orellana-Carranza
Garcia
K. Mejia10 years
21.Assault with a Dangerous Weapon in Aid of Racketeering (Victim 18)
Portillo-Fuentes
20 years
22.Assault with a Dangerous Weapon in Aid of Racketeering (Victim 19, Victim 20)
K. Mejia
F. Mejia20 years
23.Use of Firearm in Violent Federal Crime (Victim 19, Victim 20)
K. Mejia
F. MejiaLife in prison; 10-year mandatory minimum
24.Conspiracy to Distribute Cocaine
K. Mejia
F. Mejia20 years
25.Conspiracy to Commit Murder in Aid of Racketeering (Victim 22)
K. Mejia
F. Mejia10 years
26.Conspiracy to Commit Murder in Aid of Racketeering (Victim 16, Victim 22, Victim 23)
Romero-Aguirre, Jose, 26
Orellana-Carranza
Garcia
Portillo-Fuentes
Ramirez
K. Mejia
F. Mejia10 years
The maximum fine upon conviction of Count 24 is $1 million. For each of the other counts, the maximum fine upon conviction is $250,000.
Overview of Overt Acts
U.S. v. Reyes-Villatoro, et al.Overt Acts
Counts
(if also charged separately from Count 1)Date
Act
a-b
Before November 2009
Reyes-Villatoro becomes First Word; Oliva becomes Second Word
c
From December 2008 through November 2009
Reyes-Villatoro orders collection of “rent” from inactive gang members
d
Dec. 5, 2008
Palencia, Kelvin Mejia, and other MS-13 members shoot at Latin Kings
e-f
Jan. 25, 2009
Reyes-Villatoro orders unidentified MS-13 member to shoot at two members of Latin Kings
g-i
2-4
Feb. 8, 2009
Reyes-Villatoro orders Moz-Aguilar to murder Victim #5 (Christian Tigsi)
j-l
5-6
Oct. 31, 2009
Reyes-Villatoro drives Kelvin Mejia to house in North Plainfield, where Mejia fires at rival gang members
m-n
After Oct. 31, 2009, but before Feb. 27, 2010
Oliva becomes First Word; Contreras becomes Second Word
o
After Oct. 31, 2009, but before Feb. 27, 2010
Oliva orders collection of “rent” from inactive gang members
p-q
7
After Oct. 31, 2009, but before Feb. 27, 2010
Oliva and Contreras sexually assault two teenage girls to establish their dominance in gang
r-v
8-11
Feb. 27, 2010 and after
Oliva and one of his soldiers shoots and kills Victim #10 (Jessica Montoya). Contreras helps both perpetrators relocate to Maryland afterwards
w
After Feb. 27, 2010
Contreras becomes First Word
x
After Feb. 27, 2010
Contreras orders “greenlighting” of MS-13 member believed to be cooperating in investigation of Jessica Montoya’s murder. (Individual is not killed.)
y
After Feb. 27, 2010
Contreras orders collection of “rent” from inactive gang members
z
Oct. 31, 2010
Unidentified MS-13 members evade law enforcement by hiding in a Plainfield apartment (which is later the scene of the murder in Overt Act mm)
aa-cc
12-14
Nov. 10-11, 2010
Palencia orders unidentified MS-13 member to shoot teenager as he walks home from school with a group of other kids. MS-13 member shoots at group, kills another kid in the crowd, Victim #11 (Spencer Cadogan)
dd-ee
gg15-16
December 2010 through
Jan. 10, 2011Garcia recruits MS-13 members in the Washington, D.C., area to travel to New Jersey to participate in a murder-for-hire.
ff
Jan. 9, 2011
Unidentified MS-13 members murder Victim #12 (Andres Chach) in front of Pueblo Viejo (Note: this murder is not charged substantively)
hh
After Jan. 10, 2011, but before Jan. 31, 2011
Contreras passes information to Palencia about the murder of Victim #12
ii
May 7, 2011
Portillo shoots Victim #13 in Plainfield, using the same gun that was used four months earlier to kill Victim #12
jj-kk
17
May 8, 2011
Garcia assaults Victim #14
ll
May 2011
MS-13 assigns killing “missions” to certain members of the gang
mm-nn
18-19
May 8, 2011 and after
Flores and Yovany-Gomez murder Victim #15 (Julio Matute-Amaya); Mejia helps Yovany-Gomez flee New Jersey
oo-pp
May 11, 2011
Portillo, Moz-Aguilar, and Ramirez conspire to threaten and collect “rent” from inactive member of MS-13
qq
June 4, 2011
Franklin Mejia attacks Victim #17, who is supposedly associating with 18th Street gang
rr-tt
20
June 11, 2011
Orellana-Carranza seeks to complete his “mission”; conspires with Garcia and Kelvin Mejia
uu
21
June 15, 2011
Portillo attacks Victim #18 with machete
vv
22-23
June 15, 2011
Kelvin Mejia and Franklin Mejia rob two victims in Green Brook Park in Plainfield
ww
June 24, 2011
Orellana-Carranza, Ramirez, and Franklin Mejia plot to kill owner of underground liquor store
xx
June 28, 2011
Kelvin Mejia and Franklin Mejia threaten to kill individual they believe is cooperating with law enforcement
yy-zz
24
June 30, 2011 through July 2, 2011
Kelvin Mejia and Franklin Mejia arrange cocaine sales
aaa-ddd
25
July 2, 2011
Kelvin Mejia and Franklin Mejia plot to kill Victim #22 after he tries to protect Victim #17 (see Overt Act qq)
eee
July 4, 2011
Garcia and Kelvin Mejia plot to rob owner of underground liquor store to raise bail money
fff
July 2011
Franklin Mejia and Ramirez plot to kill Plainfield detective
ggg
26
July – August 2011
Kelvin Mejia, Franklin Mejia, Garcia, Ramirez and Orellana-Carranza plot to kill witnesses from inside Union County Jail
hhh-jjj
26
Aug. 1-2, 2011
Ramirez calls Romero-Aguirre from inside Union County Jail to plan witness retaliation plots
Reyes-Villatoro, Santos et al. Indictment
Moldovan Citizen Indicted for Internet FraudRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned a one-count indictment charging Vasile Leu, 33, of the Country of Moldova, with wire fraud conspiracy. The charge carries a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that according to the indictment, the defendant, a citizen of Moldova, participated in a scheme to defraud purchasers of motor vehicles over the Internet. As part of the scheme, vehicle advertisements were placed online via web sites such as eBay, autotrader.com, and autotraderclassics.com. Potential buyers would respond by e-mail to the advertisements and be contacted by individuals identifying themselves as the listed sellers of the vehicles. Correspondence would occur between the two parties with descriptions of the vehicles, negotiations of the purchase price, shipping information, and purchase information.
Once an agreement was reached for the purchase of the vehicles, the buyers would be instructed to utilize a third party, such as Google Wallet, to conduct the transaction. These third-party web sites (bogus and unrelated to legitimate third party web sites) were made to look legitimate. Once the buyers signed up for the web sites, they were told that funds sent for the purchase of the vehicles would be secured by the third party while arrangements were made for the vehicles to be shipped. Buyers were also told that the money could not be accessed by the sellers unless instructed by the buyers, and that the buyers would have a five-day inspection period upon vehicle delivery.
The buyers then received an email (purporting to be from the third-party web sites, such as eBay Motors and Google Wallet), directing them to send a wire transfer for the purchase price, plus shipping costs, to bank accounts that were opened by the defendant and a co-conspirator in Rochester, Wisconsin and California using fake names and false Czech Republic passports. After the buyers sent the wire transfers to the bank accounts, the defendant would wire transfer the proceeds overseas, primarily to bank accounts in Ukraine, or withdraw the proceeds. The buyers never received any of the vehicles offered for sale as part of the scheme. Eight individuals from other states and Canada were victimized.
"This marks the second case this week involving deals that were simply too good to be true," said U.S. Attorney Hochul. "It is extremely important before purchasing any product over the internet that consumers do their homework and know exactly who it is they are doing business with. If you have any questions, consult the Better Business Bureau or visit www.stopfraud.gov."
The indictment is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigation, under the direction of Special Agent in Charge James C. Spero.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Minister and Former Bail Bondsman Sentenced to Prison for Tax FraudRead the Press Release
Kenneth L. Richardson, 50, of Nashville, Tennessee, was sentenced on September 23, 2013, to 6 months in prison and ordered to pay $269,391.96 in restitution to the IRS for filing a false federal income tax return for tax year 2004 and for willfully failing to file a federal income tax return for tax year 2005, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee. Richardson was also sentenced to six months of home confinement to be served during one year of supervised release following the term of imprisonment.
At sentencing, the Court noted the seriousness of the offenses but cited mitigating factors in support of its decision.
Richardson pleaded guilty in September, 2012, pursuant to a plea agreement. According to the plea agreement, Richardson owned and operated Skyy Bonding Company in Nashville, Tennessee and was also employed as a pastor at St. Marks Church in Nashville. He received income from his bail bonding business and from his employment as a pastor during the tax years 2004 through 2007.
Richardson and his wife earned at least $248,174 in adjusted gross income during tax year 2004. In November 2005 Richardson filed a false Form 1040, indicating that their adjusted gross income for tax year 2004 was only $52,714.
During tax year 2005, the Richardson’s earned at least $291,174 in adjusted gross income and were therefore required to file a federal income tax return for that tax year. Richardson, however, willfully failed to file a return during the time required by law.
The case was investigated by the Internal Revenue Service- Criminal Investigation. The United States was represented by Assistant U.S. Attorney Kathryn B. Ward.
Merritt Island Man Sentenced to 10 Years in Prison for Online Enticement of A MinorRead the Press Release
Orlando, Florida, - U.S. District Judge Charlene Edwards Honeywell today sentenced Jason G. Aman (30, Merritt Island) to 10 years in federal prison for online enticement of a minor to travel to engage in sexual activity. The court also ordered Aman to serve a 5-year term of supervised release and to register as a sex offender, upon his release from prison. Aman pleaded guilty on June 3, 2013.
According to court documents, on November 10, 2012, Aman initiated contact in an Internet chat room with an undercover agent whom he believed to be a “14-year-old girl.” On the same day, he chatted using graphic and explicit sexual language expressing his desire to engage in sexual activity with the girl whom he acknowledged was 14 years old. Aman instructed the “14-year-old” to wear certain clothing and arranged to meet with her in Brevard County. When he arrived at the arranged location, Aman encountered undercover agents and was arrested.
This case was investigated by the Brevard County Sheriff’s Office (BCSO) and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It was prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.projectsafechildhood.gov.
McLaughlin Man Sentenced for Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on September 23, 2013, by U.S. District Judge Roberto A. Lange.
Ryan Soft, age 22, was sentenced to 12 months in custody, 2 years of supervised release, $15,026.55 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Soft was indicted by a federal grand jury on March 13, 2013, and pled guilty to Assault with a Dangerous Weapon on July 9, 2013.
The conviction stems from an incident that began on the evening of February 25, 2013, and went into the early morning hours of February 26, 2013. Soft was drinking and socializing with some friends and the victim at the friends’ house in McLaughlin. Soft and another person got into a fight, and when Soft knocked the person to the ground, the victim intervened and began pushing/punching Soft in an effort to break up the fight. Eventually, Soft was sitting down in the corner of the room. The victim then took a couple of steps back, and Soft got to his feet, pulled a knife from his pocket and stabbed the victim in the stomach. The victim fell to the floor and then retreated to the kitchen.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Jay Miller prosecuted the case.
Soft was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.McLaughlin Man Pleads Guilty to Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that Lehi James Demarrias, Sr., age 31, of McLaughlin, South Dakota, appeared before U.S. District Judge Charles B. Kornmann on September 23, 2013, and pled guilty to Assault Resulting in Serious Bodily Injury.
The maximum penalty upon conviction is 10 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The conviction stems from an incident that happened in McLaughlin on July 17, 2013, when Standing Rock Agency Dispatch received a call regarding a male who had been stabbed in the stomach. Bureau of Indian Affairs police officers arrived on the scene and were informed by the victim that he had been stabbed by Demarrias. As a result of the assault, the victim had to undergo emergency surgery at a hospital in Bismarck, North Dakota, due to the possibility of a ruptured organ.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Demarrias was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for December 30, 2013.Margate City Commissioner Convicted of Federal Bribery ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that David McLean, 50, a suspended City Commissioner for the city of Margate and board member on the Margate Community Redevelopment Agency (MCRA) Board was convicted by a Ft. Lauderdale federal jury on September 24, 2013, of federal bribery charges. McLean was convicted on counts two and three of a three-count indictment charging him with bribery in a program receiving federal funds, in violation of Title 18, United States Code, Section 666. McLean was acquitted of the charges in Count one.
According to the allegations in the indictment and the evidence presented at trial, on November 2, 2012, McLean accepted $3,000 in cash in exchange for his influence in connection with a $25,000 MCRA construction grant (Count 2). And on January 30, 2013, McLean accepted another $2,000 in cash in exchange for his influence in connection with the $25,000 MCRA construction grant.
The defendant faces a maximum statutory term of 10 years in prison, a $250,000 fine and restitution as to each of the two counts. Sentencing is scheduled for December 6, 2013, before U.S. District Judge James Cohn in Ft. Lauderdale.
Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Neil Karadbil.
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.
Manhattan U.S. Attorney Announces Charges Against Hudson County Corrections Officer and Other Alleged Members of an Armed Robbery Crew That Impersonated Police OfficersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Brian R. Crowell, the Special-Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), Aaron Ford, the Special-Agent-in-Charge of the Newark Office of the Federal Bureau of Investigation (“FBI”), Raymond W. Kelly, the Commissioner of the New York City Police Department (“NYPD”), Joseph A. D’Amico, the Superintendent of the New York State Police (“NYSP”), and Gaetano T. Gregory, the Acting Prosecutor of Hudson County, today announced the filing of a Superseding Indictment (the “S2 Indictment”)in Manhattan federal court charging BENNY LISOJO and WILFREDO SUAREZ, two additional alleged members of an armed robbery crew who impersonated police officers, with robbery conspiracy and firearms offenses. LISOJO is a Hudson County Corrections Officer. A third defendant named in the S2 Indictment, ANTHONY SERRANO, was arrested on August 1, 2013. LISOJO and SUAREZ were taken into custody today and will be presented this afternoon before Magistrate Judge Debra Freeman.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these defendants committed armed robberies while pretending to be police officers. In doing so, as charged, the defendants – one of whom sadly was a law enforcement officer -- both endangered the public and added to the workload of the real police. This Office and our partners will continue our efforts to pursue and prosecute those who perpetrate alleged violent crime.”
DEA Special-Agent-in-Charge Brian R. Crowell said: “This nine month investigation has culminated in the announcement of three additional arrests of a home invasion crew that posed as police officers, carrying loaded weapons and committing robberies in New York and New Jersey. One crew member did not have to pretend he was a police officer – because Benny Lisojo was a Hudson County Corrections Officer while committing these alleged crimes. Law enforcement efforts on all levels, have successfully identified, investigated and arrested twenty members of this brutal crew to rid the streets of this public menace.”
FBI Special-Agent-in-Charge Aaron Ford said: “These alleged actions are an erosion of the public's ability to trust the law enforcement personnel who have taken oath to protect against such egregious, criminal activity. The FBI will continue to support this ongoing investigation, so the members of the public can continue to trust in the vast majority of law enforcement officials who respect their oath and are committed to public service.”
NYPD Commissioner Raymond W. Kelly said: “These brazen criminals were allegedly responsible for multiple violent crimes including car jackings and robberies at gunpoint. I commend the members of the New York Drug Enforcement Task Force, including NYPD detectives, and the prosecutors in the U.S. Attorney's office for their work in bringing to justice these violent robbers who even posed as law enforcement in the commission of their crimes.”
NYSP Superintendent Joseph A. D’Amico said: “Once again the hard work of law enforcement partners working together has resulted in getting allegedly dangerous individuals off of our streets. Not only did these suspects allegedly commit these violent acts, but they posed as law enforcement, making traffic stops to pull off their robberies. The alleged actions of these crews will never be tolerated, especially those impersonating officers. I commend and thank the U.S. Attorney's Office, the Drug Enforcement Administration, the Federal Bureau of Investigation, the New York City Police Department and Hudson County Prosecutor's Office for their continued partnerships.”
According to the allegations contained in the Superseding Indictment unsealed today:
On October 14, 2012, SERRANO and other co-conspirators, while pretending to be police officers, stopped two victims who were traveling in a vehicle in New York, New York, and robbed the victims at gunpoint.
On November 22, 2012, LISOJO and SUAREZ and other co-conspirators, while pretending to be police officers, stopped five victims who were traveling in a vehicle in New Jersey after departing from New York, New York, restrained four of the victims, and robbed them at gunpoint.
SERRANO, 39, of Jersey City, New Jersey, LISOJO, 31, of Newark, New Jersey, and SUAREZ, 31, of Jersey City, New Jersey, are each charged with one count of robbery conspiracy, and one count of brandishing a firearm in connection with a robbery conspiracy. They each face up to 20 years in prison on the robbery charge and life in prison on the firearms charge.
The arrests and charges are part of an ongoing investigation of an armed robbery crew that impersonated police officers and targeted individuals believed to be engaged in narcotics trafficking and/or engaged in businesses that affected interstate and international commerce. Seventeen other members of the same robbery crew were arrested in January 2013, in possession of, among other things: six loaded guns, shirts bearing the word “Police,” a hydraulic ram similar to those used by law enforcement to break down doors, handcuffs, walkie talkies, a purported law enforcement shield, a baseball bat, ski masks, and GPS units similar to those used by law enforcement to track suspects. Sixteen of these 17 defendants have pleaded guilty.
Mr. Bharara praised the DEA, the FBI, the NYPD, the NYSP, and the Hudson County Prosecutor’s Office for their work in the investigation.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant United States Attorneys Rachel Maimin and Rahul Mukhi are in charge of the prosecution.
The charges contained in the S2 Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Local Woman Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – THERESA MOORE admitted that she employed various aliases and claimed to be with law enforcement and the legal profession to induce victims to pay her money by convincing them that she could assist them with various legal matters. Moore contacted her victims by telephone and made false representations about non-existent legal matters.
According to court documents, in July 2009, Moore met an elderly widower through a telephone dating service. Soon after making the acquaintance, Moore, and her associates, using various aliases, began contacting him by telephone to inform him he was a victim of identity theft. Moore intentionally deceived him into believing that he was entitled to restitution and that he had to pay money up front in order to collect the restitution payment. At other times, Moore intentionally deceived him into believing that he would be receiving money as part of a legal settlement, but that he had to pay money up front in order to collect the settlement. In reliance on Moore's false representations, over the course of about three years, the man made numerous payments to Moore. The Government believes the man paid Moore in excess of $60,000.
In May 2011, Moore and one of her associates contacted victim J.N. by telephone and told J.N. that there were several warrants out for the arrest of J.N.'s adult daughter, P.N., who had developmental learning disabilities. Moore stated to J.N. that Moore had paid fines on behalf of P.N. and needed to be reimbursed, when in fact, Moore was not aware of any such arrest warrants and had made no such payments. Moore enlisted an associate who posed as a police detective in order to lend credibility to her scheme. The Government believes J.N. paid Moore in excess of $20,000 as a result of the fraud scheme.
Theresa Moore, St. Louis, Missouri, pled guilty to four felony counts of wire fraud before United States District Judge John A. Ross. Sentencing has been set for January 9, 2014.
Each count of wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the United States Postal Inspection Service, the Hazelwood Police Department, the Clayton Police Department, The St. Louis County Police Department and the Missouri Attorney General’s Office. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.
Local Man Pleads Guilty to Wire Fraud ChargesRead the Press Release
St. Louis, MO – SEAN HOLLAND pled guilty to a wire fraud scheme whereby he embezzled money from a condominium association for which he served as bookkeeper.
According to the plea agreement, Holland worked as a bookkeeper for Maryland House Condominium in St. Louis between 2008 and 2010. He made unauthorized electronic transfers of funds to his personal bank account and concealed the transfers from the management of the association. The government contends that more than $70,000 was diverted in this way.
Sean Holland, St. Louis, Missouri, appeared before U.S. District Judge Catherine D. Perry who set sentencing for December 19, 2013.
Holland faces up to 20 years imprisonment, a fine of $250,000 or both. Restitution for the benefit of the association is also mandatory.
The case was investigated by the St. Louis Metropolitan Police Department, the U.S. Secret Service and the St. Louis Circuit Attorney’s Office. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
Levi Anthony Labuff, Jr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on September 25, 2013, before Chief U.S. District Judge Dana L. Christensen, LEVI ANTHONY LABUFF, JR., a 36-year-old resident of Browning, was sentenced to a term of:
Prison: 60 months
Special Assessment: $ 100
Supervised Release: 5 years
LABUFF was sentenced in connection with his guilty plea to conspiracy to possess with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government stated it would have proved at trial the following:
On February 23, 2012, LABUFF and Wilma Jamie Rae Hoyt were arrested in Browning. LABUFF was arrested because he had a state warrant out for his arrest. Hoyt was arrested for a federal warrant because she had violated conditions of her supervised release. At the time of the arrest, law enforcement collected $600 in U.S. currency from LABUFF. The money was claimed to be from LABUFF's "tax return."
When interviewed, Hoyt stated that she first became romantically involved with LABUFF in approximately 2009 or 2010. Both LABUFF and Hoyt were initially "clean," but LABUFF lost his job, and they were in need of money to maintain their household and take care of their children. Hoyt stated that this is when they began selling methamphetamine for income.
In approximately February or March of 2011, Hoyt admitted that individuals approached her and LABUFF, requesting that they sell methamphetamine. LABUFF and Hoyt complied with such a request, and this relationship lasted until January of 2012. LABUFF and Hoyt would receive three grams of methamphetamine at a time. Hoyt estimated that she received methamphetamine, to sell, every week, and the longest without receiving drugs was three weeks.
Hoyt explained that, after selling for awhile, she met another methamphetamine dealer, who provided her and LABUFF with a higher-quality methamphetamine. This new dealer initially provided them with a "weighed out gram" of methamphetamine, which they would break down and sell. However, as the relationship grew, so did the amounts that the new distributor provided. For example, the new distributor eventually provided Hoyt and LABUFF with a "weighed out eight ball." In total, Hoyt stated that the new distributor provided them a "weighed out gram" on six occasions and a "weighed out eight ball" on three occasions.
Law enforcement interviewed LABUFF the day after interviewing Hoyt. LABUFF also admitted that he began selling methamphetamine, and stated that such sales began in late December 2010 and continued until approximately June 2011. LABUFF provided specifics as to amounts sold and prices paid to the distributors.
The FBI interviewed various "customers" of Hoyt and LABUFF. These individuals confirmed that Hoyt and LABUFF sold methamphetamine, and the amounts of the conspiracy involved more than 50 grams of a substance containing a detectable amount of methamphetamine.
Hoyt pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that LABUFF will likely serve all of the time imposed by the court. In the federal system, LABUFF does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Leland Neil Lapier, Jr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on September 24, 2013, before Chief U.S. District Judge Dana L. Christensen, LELAND NEIL LAPIER, JR., a 28-year-old resident of Great Falls, was sentenced to a term of:
Prison: 168 months
Special Assessment: $200
Supervised Release: 5 years
LAPIER was sentenced after a federal district court trial in which he was found guilty of conspiracy to possess with the intent to distribute methamphetamine and possession with the intent to distribute methamphetamine.
Assistant U.S. Attorney Jessica A. Betley prosecuted the case for the United States.
At trial, the following evidence and testimony was presented to the jury.
In January 2012, Great Falls law enforcement became alerted to a large scale methamphetamine conspiracy. Subsequently, Louis Kanyid, Joelle Jones, Ann Wetzel, Joe Wetzel, Mark Kness, Linda Reynolds, Robert Boucher, Ron Leeson, Tammie Lapie, and Mark Abresch have pleaded guilty to various methamphetamine crimes. Through independent investigation, as well as through debriefs of these defendants, law enforcement learned that LAPIER was also an active participant in this conspiracy and responsible for the distribution of methamphetamine throughout Great Falls.
From September 2011, through September 2012, Louis Kanyid brought pounds of actual (pure) methamphetamine from Kennewick, Washington, to Great Falls. Kanyid spoke with law enforcement and said one of his original contacts in Great Falls was LAPIER's sister. Kanyid met her through Craig's List, and she began to purchase and sell methamphetamine provided by Kanyid. Eventually, though, LAPIER took over her position. Kanyid found the methamphetamine market in Great Falls to be extremely profitable, and from April 2012, and forward, he never brought less than a pound of methamphetamine with him on each trip to Great Falls.
Kanyid regularly provided LAPIER with half of the methamphetamine that he brought to town. LAPIER lived with his girlfriend in Great Falls and he conducted his methamphetamine business from the garage. Customers met LAPIER and Kanyid in the garage so that neighbors would not witness the drug transactions. Kanyid paid his methamphetamine supplier $1,200 per ounce and never sold an ounce of methamphetamine in Great Falls for less than $2,000. Kanyid claimed an ounce of methamphetamine could actually be bought for $3,200 in Great Falls. At one point, Kanyid and LAPIER engaged in a contest to see how much methamphetamine each could sell in one day in Great Falls. According to Kanyid, himself and LAPIER made $6,000 each in one day.
In August 2012, Kanyid sold five pounds of methamphetamine in Great Falls, including two pounds directly to LAPIER. Law enforcement eventually seized approximately 38 grams of pure methamphetamine from Kanyid's hotel room.
Law enforcement also arrested Kanyid's girlfriend, Joelle Jones, for her involvement in this methamphetamine conspiracy. Jones later told agents that Kanyid spent a great amount of time with LAPIER. In fact, when police arrested Kanyid, LAPIER immediately called Jones to warn her of the arrest. Jones later took a taxi to LAPIER's house that night and LAPIER's girlfriend provided Jones with a car to drive back to Washington. Jones returned to Great Falls again a week later to meet with LAPIER. After Kanyid's arrest, LAPIER encouraged Jones to bring methamphetamine to him in Great Falls.
After a grand jury indicted Kanyid, Jones, Ann Wetzel, Joe Wetzel, Mark Kness, and Linda Reynolds, LAPIER turned elsewhere to buy methamphetamine. Following the initial indictment and arrests, LAPIER then turned to Robert Boucher in order to purchase methamphetamine.
Boucher was from Spokane, Washington, and began selling methamphetamine in December 2009. He originally made contact with Great Falls methamphetamine dealers through a female Great Falls resident, who traveled to Spokane to purchase methamphetamine. Mark Abresch also accompanied this woman on trips to Spokane. After approximately six months, Boucher began to travel to Great Falls to sell methamphetamine. He normally brought six to eight ounces of methamphetamine on each trip. Boucher stayed at Tammy Lapie's home, and became associated with selling methamphetamine with Lapie, Abresch, and Ron Leeson. Boucher also told agents that he met LAPIER in Great Falls. Boucher regularly sold LAPIER two ounces of methamphetamine at a time, and did that approximately three or four times. LAPIER paid $1,700 per ounce, and last bought methamphetamine from Boucher about one week before Boucher's arrest in December 2012.
Tammy Lapie told agents that LAPIER began to come to her home in October 2012. LAPIER began to look for larger amounts of methamphetamine and turned to Boucher for methamphetamine. Lapie believed LAPIER purchased one ounce of methamphetamine from Boucher on one occasion, and between one to four ounces of methamphetamine on another occasion. Law enforcement seized approximately 44 grams of actual methamphetamine from Lapie's home. Chris Leeson also told agents that people knew that Kanyid was LAPIER's original source of methamphetamine. Leeson once traded a car speaker to LAPIER for an eight ball of methamphetamine.
Mark Abresch originally worked as a confidential informant with the Great Falls Police Department before being dropped as an informant due to continued drug dealing. During the summer of 2012, Abresch bought approximately 60 grams of actual methamphetamine from Boucher through controlled drug buys. Abresch alerted agents in July 2012, that LAPIER always had methamphetamine in Great Falls. Abresch did not purchase methamphetamine from LAPIER because he charged $2,000 per ounce.
In September 2012, Abresch told agents that he had hung out at LAPIER's house on numerous occasions and saw LAPIER with large amounts of methamphetamine. In the spring of 2012, Abresch saw LAPIER with four to six ounces of methamphetamine. Abresch then saw numerous customers purchase the methamphetamine. During mid-summer 2012, Abresch observed Kanyid drop off a half pound of methamphetamine to LAPIER in LAPIER's garage. LAPIER again started distributing the methamphetamine from the garage. Lastly, in August or early September 2012, Abresch observed LAPIER sell four ounces of methamphetamine from his garage.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that LAPIER will likely serve all of the time imposed by the court. In the federal system, LAPIER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the High Intensity Drug Trafficking Area (HIDTA) Task Force - Russell Country Drug Task Force.
Leader of International Sex Trafficking Organization Plead GuiltyRead the Press Release
All 23 defendants in custody have now pled guilty arising out of
Human/Sex Trafficking Investigation Dark NightSAVANNAH, GA - Joaquin Mendez-Hernandez, a/k/a, El Flaco, 35, formerly of Mexico, pled guilty last week before Senior United States District Court Judge B. Avant Edenfield for his role in a sex trafficking organization which operated in Savannah, Georgia, parts of Florida, South Carolina and North Carolina, and in Mexico. El Flaco faces a possible life sentence for his role in the sex trafficking organization.
Each of the 23 defendants that were charged earlier this year in an operation dubbed “Dark Night” have pled guilty. 2 additional defendants, Eugenio Prieto-Hernandez and Daniel Ribon-Gonzalez, remain fugitives. Operation Dark Night represents the largest sex-trafficking investigation ever prosecuted in the Southern District of Georgia.
According to evidence presented during numerous guilty pleas, local and federal law enforcement agencies identified and dismantled an international sex trafficking enterprise that spread from Mexico to Savannah, Georgia. Members of the organization enticed women from Mexico, Nicaragua and elsewhere to travel to the United States with false promises of the American dream. Once inside the United States, these women were threatened and forced to commit acts of prostitution at numerous locations in Savannah and throughout the southeast. Women were forced to engage in sexual activity with as many as 30-50 people a day. To make sure the women complied, members of the organization threatened the women; used violence against the women; and held children hostage in Mexico. Members of the organization would also trade their victims to other members who operated in other states.United States Attorney Edward Tarver states, “It is with great pride that I announce the convictions of all of the defendants who were indicted and arrested in connection with ‘Operation Dark Night.’ This case serves as an example of how local and federal law enforcement can work together to rescue women, save lives, and prosecute criminals. In this case, justice was swift; and we expect the punishment to be severe.”
“The conviction of the monsters arrested in this heinous sex trafficking scheme marks the end of a life of misery inflicted on these innocent victims of human trafficking. The perpetrators, ranging from street-level customers to international sex traffickers, will be held accountable for their repeated victimization and exploitation of these vulnerable women,” said Brock D. Nicholson, special agent in charge of Homeland Security Investigations (HSI) Atlanta. “We are deeply gratified by the significant support we received from our law enforcement partners, non-governmental service organizations and the U.S. Attorney’s Office for the Southern District Georgia for bringing Operation Dark Night to a successful conclusion.”
The 23 defendants who pled guilty in Operation Dark Night are:
Joaquin Mendez-Hernandez, a/k/a, “El Flaco,” 35, Savannah, Georgia
Juan Carlos Pena, 55, Bonaire, Georgia
Luisa Capilla-Lancho, a/k/a “Marisol” 32, Savannah, Georgia
Jorge Lira-Xochicale, a/k/a “Roger,” a/k/a “Juan De Dios,” a/k/a “Juan Diablo,” 35,
Atlanta, GeorgiaMayer Sanchez-Calderon, a/k/a “Maye,” 22, Charlotte, North Carolina
Claudio Sanchez-Calderon, a/k/a “Borrego,” 43, Charlotte, North Carolina
Omar Peralta-Rodriguez, a/k/a “Erick Peralta,” a/k/a “El Negro,” 42, Baxley, Georgia
Neurby Celenia Diaz, a/k/a “Dona Rosa,” 48, Baxley, Georgia
Antonio Ubaldo Mendez-Lopez, 46, Naples, Florida
Cesar Aguilar-Rebollar, a/k/a “Cesar Nicholas Jaime,” 44, Tampa, Florida
Sylvia Barrera, 30, Warner Robbins, Georgia
David Reyes, 29, Savannah, Georgia
Antonio Ramirez-Catalan, a/k/a “Joel,” 30, Monroe, North Carolina
Jose Ricardo Vazquez-Garcia, 39, W. Columbia, South Carolina
Marisol Ferreriras, 38, Marietta, Georgia
Paresh Patel, 55, Savannah, Georgia
Sergio Valazquez Martinez, 35, Savannah, Georgia
Fernando Pelayo Silverio, 27, Savannah, Georgia
Arturo Salquil- Gomez, 41, Savannah, Georgia
Jose Hernandez-Trujillo, 29, Savannah, Georgia
Silvstre Aguilar Sayago, a/k/a “Chucky,” 27, Savannah, Georgia
Rodolfo Hernandez Guiterrez, 44, Savannah, Georgia
Alex Martinez Monzon, 36, Savannah, Georgia
Many of these defendants are awaiting sentencing.
12 victims were rescued as a part of Operation Dark Night. HSI provides relief to victims of human trafficking by allowing for their continued presence in the United States during criminal proceedings. Victims may also qualify for a T visa, which is issued to victims of human trafficking who have complied with reasonable requests for assistance in investigations and prosecutions. Anyone who suspects instances of human trafficking is encouraged to call the HSI tip line at 1-866-DHS-2-ICE (866-347-2423) or the Human Trafficking Hotline at 1-888-373-7888. Anonymous calls are welcome.
Operation Dark Night was led by HSI, with assistance from the FBI; the ATF; U.S. Customs and Border Protection (CBP); CBP Air and Marine Operations; IRS-Criminal Investigations; the Savannah-Chatham Metropolitan Police Department; the Chatham County Sheriffs Office; the Garden City Police Department; and, the Chatham County Counter Narcotics Team. Assistant United States Attorney Tania D. Groover and E. Greg Gilluly, Jr. are prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Kansas City Man Charged in Robbery, Shooting at Leawood McDonald'sRead the Press Release
KANSAS CITY, KAN. - A Kansas City, Mo., man has been indicted on federal charges in connection with a robbery in Leawood in which a restaurant manager was shot, U.S. Attorney Barry Grissom said today.
Nicholas Martell McGinnie, 26, Kansas City, Mo., is charged with one count of armed robbery, one count of discharging a firearm during the robbery and one count of unlawful possession of a firearm after a felony conviction.
The indictment alleges that on Dec. 1, 2012, he robbed the McDonald’s restaurant at 4600 W. 119th Street in Leawood, Kan. During the robbery, a store manager was shot.
If convicted, McGinnie faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on the robbery charge; a penalty of not less than 25 years and a fine up to $250,000 on the charge of discharging a firearm during the robbery and a maximum penalty of 10 years and a fine up to $250,000 on the charge of unlawful possession of a firearm after a felony conviction. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Mike Warner is prosecuting.OTHER INDICTMENTS
Rafael Penaloza, 38, Kansas City, Kan., is charged with one count of conspiracy to distribute methamphetamine and 13 counts of distributing methamphetamine. The crimes are alleged to have occurred at various times from June 21, 2011, to March 20, 2012, in Kansas City, Kan.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million on the conspiracy count; not less than five years and not more than 40 years and a fine up to $5 million on two of the distribution counts; and not less than 10 years and a fine up to $10 million on each of the other distribution counts.The FBI investigated. Assistant U.S. Attorney David Zabel is prosecuting.
Carrie Anne Neel, 36, Newton, Kan., and Karen A. Parks, 50, Newton, Kan., are charged with four counts of distributing methamphetamine and one count of maintaining a residence at 801 E. 4th in Newton in furtherance of drug trafficking. The crimes are alleged to have occurred in February and March 2013 in Harvey County, Kan.
If convicted, he faces a maximum penalty of 20 years and a fine up to $1 million on each of the distribution counts and a maximum penalty of 20 years and a fine up to $500,000 on the charge of maintaining a residence in furtherance of drug trafficking. The Newton Police Department investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Jason Giesy, 29, and Jeremy Harris, 31, are charged with one count of conspiracy to distribute more than 1,000 kilograms of marijuana. In addition, they are charged with one count of tampering with a witness. The crimes are alleged to have occurred in September 2013 in Sedgwick County, Kan.
If convicted, they face a penalty of not less than 10 years on the marijuana charge. The Drug Enforcement Administration, the Wichita Police Department, the Sedgwick County Sheriff’s Office and the Butler County Sheriff’s Office investigated. Assistant U.S. Attorney Debra Barnett is prosecuting.
John Michael Devosha, 23, is charged with two counts of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred Dec. 11, 2012, and May 18, 2013, in Kansas City, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
Adan Rodriguez-Torres, 39, a citizen of Mexico, is charged with unlawfully re-entering the United States after being convicted of an aggravated felony and deported. He was found Sept. 16, 2013, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison without parole and a fine up to $250,000. Immigration and Custom Enforcement’s Enforcement and Removal Operations and the Wichita Police Department investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Hilda Jaimes-Nieto, 46, a citizen of Mexico, is charged with one count of making false statements to an agent of the Department of Homeland Security.
If convicted, she faces a maximum penalty of five years in federal prison without parole and a fine up to $250,000. Immigration and Custom Enforcement’s Enforcement and Removal Operations and the Wichita Police Department investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Justice Department and Federal Trade Commission Issue Updated Model Waiver of Confidentiality for International Civil Matters and Accompanying FAQRead the Press Release
WASHINGTON—The Department of Justice’s Antitrust Division and the staff of the Federal Trade Commission (FTC) today issued a joint model waiver of confidentiality (74.63 KB) for individuals and companies to use in merger and civil non-merger matters involving concurrent review by the DOJ or FTC and non-U.S. competition authorities.
A waiver provides the terms on which an individual or company agrees to waive statutory confidentiality protections to the agency that originally received the company’s confidential information. The model waiver is designed to streamline the waiver process to significantly reduce the burden on individuals and companies, as well as to reduce the agencies’ time and resources involved in negotiating waivers.
The model waiver updates and replaces the agencies’ prior forms. It reflects both agencies’ recent experience with waivers, incorporating updated language and provisions, including a provision addressing the agencies’ treatment of privileged information.
A waiver of confidentiality is voluntarily provided by an individual or company involved in a civil matter. A waiver describes an agency’s policy regarding its treatment of information received from another competition agency under a waiver, although it is not an agreement signed by the agency. A waiver allows for the sharing of confidential information only among the competition agencies listed in the waiver.
Waivers enable more complete communication, cooperation and coordination between competition agencies concurrently investigating a matter. By permitting cooperating agencies to discuss or otherwise exchange the individual’s or company’s confidential information, a waiver enables agencies to make more informed, consistent decisions and coordinate more effectively, often expediting the review.
To promote greater transparency and better understanding of the DOJ’s and FTC’s policies and practices related to waivers, DOJ and staff of the FTC also released a Frequently Asked Questions (FAQ) document (119.08 KB) to accompany the model waiver. The FAQ provides introductory information on waivers and on the confidentiality rules applicable to the information provided under the model waiver. It also describes the process for providing a waiver to either agency and explains specific provisions of the model waiver. By issuing the model waiver and accompanying FAQ jointly, the Department of Justice and the Federal Trade Commission hope to facilitate parties’ use of waivers generally and, in particular, the model waiver.
Further information about waivers of confidentiality, the model waiver of confidentiality, and FAQ are available at http://www.justice.gov/atr/public/international/index.html and http://www.ftc.gov/oia/waivers/index.shtm.
Justice Department Settles Lawsuit Alleging Religious Discrimination by the City of Birmingham, Ala., Police DepartmentRead the Press Release
The Department of Justice announced today that it has reached a settlement agreement with the City of Birmingham, Ala., that, if approved by the court, will resolve the Department’s complaint alleging religious discrimination in violation of Title VII of the Civil Rights Act of 1964, as amended. The complaint, which was filed simultaneously with the parties’ settlement agreement in the U.S. District Court for the Northern District of Alabama, alleges that the city’s police department discriminated against former employee Renee Gunn on the basis of her religion, Messianic Judaism, by failing to provide her a reasonable accommodation of her religious practice of not working during the Jewish Sabbath, which ultimately forced her to resign from the police department.
Gunn was employed by the city’s police department as a public safety dispatcher from April 2008 until her resignation in August 2011. According to the Department’s complaint, Gunn is a practicing member of the Messianic Jewish faith, which prohibits its adherents from working during the Jewish Sabbath, from sunset on Fridays until sunset on Saturdays. As the Department’s complaint alleges, Ms. Gunn’s work schedule required that she work during the Jewish Sabbath, and she requested a change in her schedule to accommodate her Sabbath observance. According to the complaint, police department officials denied this request stating that it did not change off days for any religious faith. Ms. Gunn was forced to resign her position with the police department due to the city’s failure to provide a reasonable accommodation. As the complaint alleges, the police department could have accommodated Ms. Gunn’s religious beliefs without undue hardship.
Under the terms of the settlement, the city must pay Gunn $80,000 in back pay and compensatory damages, and reinstate her as a dispatcher in the police department with a work schedule that does not require her to work during the Sabbath. The city is also required to develop and implement a religious accommodation policy for the police department that is consistent with Title VII’s requirement for employers to reasonably accommodate the religious beliefs, practices and observances of all employees and prospective employees. In addition, the city is required to provide mandatory training on the religious accommodation policy to all police department employees.
“Employees should not have to choose between practicing their religion and their jobs,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “This case highlights the obligation of an employer to engage in an interactive process to understand and work with an employee in finding an accommodation of the employee’s religious beliefs that will not cause undue hardship to the employer. We commend the City of Birmingham for working cooperatively with the Justice Department to reach this agreement.”
The enforcement of Title VII is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its websites at www.justice.gov/crt/ and www.justice.gov/crt/emp/.
Justice Department Reaches Settlement with Infinity Group to Resolve Immigration-Related Unfair Employment PracticesRead the Press Release
The Justice Department announced today that it has reached an agreement with Infinity Group (IG) and its related entities resolving allegations that the companies violated the anti-discrimination provision of the Immigration and Nationality Act (INA). IG is based in Clute, Texas and provides project-based temporary skilled labor to client companies. IG employs over a thousand individuals in the United States.
The Department’s investigation was initiated based on a referral from U.S. Citizenship and Immigration Services (USCIS). The investigation determined that IG entities, which utilized the E-Verify system, required non-citizens to present specific U.S. Department of Homeland Security-issued documents to establish their identity and employment authorization while not making similar requests of U.S. citizens. The INA’s anti-discrimination provision prohibits employers from
discriminating against noncitizens in the employment eligibility verification process by demanding more or different documents than U.S. citizens are required to present. After receiving notice of the Office of Special Counsel for Immigration-Related Employment Practices’ (OSC) investigation, IG immediately changed its employment policies and practices to conform to the anti-discrimination provision of the INA.
Under the terms of the settlement agreement, IG will train its human resources personnel on the INA’s anti-discrimination provision; pay $53,800 in civil penalties to the United States; create a $35,000 back pay fund to compensate any individuals who suffered lost wages as a result of its practices; and be subject to monitoring by the department and reporting requirements for a period of two years.
“Employers, including those who use E-Verify, must ensure that their human resources personnel do not violate the anti-discrimination provision of the INA,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “Infinity Group is commended for immediately changing its policies upon notice of OSC’s investigation to address its discriminatory documentary practices.”
OSC is responsible for enforcing the anti-discrimination provision of the INA. The case was handled by OSC Trial Attorney Liza Zamd. For more information about protections against employment discrimination under the immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired), call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired), sign up for a free webinar at www.justice.gov/about/osc/webinars.php , email [email protected] or visit the website at www.justice.gov/crt/about/osc .
Justice Department Announces Enhanced Online Resource for U.S. Victims of Overseas TerrorismRead the Press Release
The Justice Department today announced an enhanced online resource designed to support American victims of overseas terrorism. The site, sponsored and maintained by the National Security Division’s Office of Justice for Victims of Overseas Terrorism (OVT), will expand the public’s ability to obtain information about the types of support available to help victims of overseas attacks and their loved ones in the aftermath of acts of international terrorism, including information about programs available to assist victims in connection with foreign criminal justice proceedings. In addition, the website provides greater information about OVT’s establishment and services, for victims and others interested in OVT’s work.
“This enhanced website will serve as an important resource for U.S. victims of overseas terrorism and their loved ones,” said John P. Carlin, Acting Assistant Attorney General for National Security. “The Department remains committed both to seeking justice for Americans victimized by terrorism, whether at home or abroad, and to providing victims the information and support they deserve.”
The Attorney General established the OVT on May 6, 2005. It is now a component of the Justice Department’s National Security Division. The primary purpose of the OVT is to ensure that the investigation and prosecution of terrorist attacks against American citizens overseas remain a high priority within the Department of Justice.
The OVT is responsible for monitoring the investigation and prosecution of terrorist attacks against Americans abroad; working with other pertinent Justice Department components to ensure that the rights of victims of such attacks are honored and respected; establishing a Joint Task Force with the Department of State, to be activated in the event of a terrorist attack in which Americans are harmed; and serving as an information resource to American victims of overseas terrorism including, as appropriate, information about ongoing foreign investigations and prosecutions.
“It is crucially important that any Americans attacked while traveling or living outside of our borders receive the support of our government as they pursue justice in the aftermath of the tragedy of terrorism,” said Heather Cartwright, Director of the Office of Justice for Victims of Overseas Terrorism. “This online resource gathers in one place important information for American victims of overseas terrorism and provides assistance as they seek accountability for these crimes.”
The enhanced online resource will first be made available on the Justice Department’s website at http://www.justice.gov/nsd/ovt.