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21 November 2013
Two Defendants Admit Roles in $65 Million Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – Two defendants have admitted their roles in one of the nation’s largest and longest running stolen identity refund fraud schemes ever identified, U.S. Attorney Paul J. Fishman announced today.
The scheme caused more than 8,000 fraudulent U.S. income tax returns to be filed, which sought more than $65 million in tax refunds, and which resulted in the losses to the United States of more than $12 million.
Michael Senatore, 43, of Moscow, Pa., and David Pinski, 75, of Fort Lee, N.J., both pleaded guilty before U.S. District Judge Claire C. Cecchi to informations charging them with conspiracy to defraud the United States and theft of government property. Senatore entered his plea today, Pinkski entered his plea Nov. 20, 2013.
The conspiracy count is punishable by a maximum potential penalty of five years in prison and up to a $250,000 fine. The substantive count of theft of government property carries a maximum potential penalty of 10 years in prison and up to a $250,000 fine.
According to documents filed in this case and statements made in court: Stolen Identity Refund FraudStolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually to the United States Treasury. SIRF schemes generally share a number of hallmarks:
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- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
- SIRF perpetrators complete Individual Income Tax Return Form 1040s using the fraudulently-obtained information, and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 forms are entitled to tax refunds – when in fact, the various tax withholdings indicated on the fraudulent 1040s have not been paid by the listed “taxpayers,” and no refunds are due.
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
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- Perpetrators direct the U.S. Treasury Department to issue the refunds through checks (Tax Refund Treasury Checks) generated by the fraudulent 1049 forms to locations they control or can access, in various ways.
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- With Tax Refund Treasury Checks now in hand, SIRF perpetrators generate cash proceeds. Certain SIRF perpetrators sell refund checks at a discount to face value. In turn, the buyers then cash the checks, either themselves or using straw account holders, by cashing checks at banks or check cashing businesses, or by depositing checks into bank accounts. When cashing or depositing checks, SIRF perpetrators often present false or fraudulent identification documents in the names of the “taxpayers” to whom the checks are payable.
The Investigation
Federal law enforcement agencies created a multi-agency task force in New Jersey composed of investigators from the IRS and the U.S. Postal Inspection Service, along with the U.S. Secret Service, and with assistance from the Drug Enforcement Administration (the “New Jersey Task Force”).
An investigation led by the New Jersey Task Force, with assistance from U.S. Immigration and Customs Enforcement, Homeland Security Investigations, revealed that from at least 2007, dozens of individuals in the New Jersey and New York area have been engaged in a large-scale, long running SIRF scheme that caused more than 8,000 fraudulent 1040 forms to be filed, seeking more than $65 million in tax refunds, with more than $12 million in losses to the U.S. Treasury.
Pinski, Senatore and others obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. They used those identifiers to create fraudulent 1040 forms, which falsely reported wages purportedly earned by the “taxpayers” and taxes purportedly withheld, to create the appearance that the “taxpayers” were entitled to tax refunds. The returns were filed electronically. By tracing the specific IP addresses that submitted the electronically-filed 1040s, law enforcement officers learned that just a handful of IP addresses created many of the fraudulent 1040 forms that lead to the issuance of tax refund checks.
Conspirators purchased mail routes, that is, lists of addresses covered by a single mail carrier. Conspirators applied for refunds, inserted addresses along the mail route as the purported home addresses of the “taxpayers,” and obtained the refund checks sent to the addresses. They also applied for checks using addresses otherwise controlled by, or accessible by, certain conspirators, and collected the checks after they were delivered to those addresses. During the course of the scheme, hundreds of refund checks were mailed to just a few different addresses in a few different towns, including Nutley, Somerset and Newark, N.J., and Shirley, N.Y.
After receiving the refund checks, Pinski, Senatore and others caused the checks to be cashed at check cashing institutions, and then causing the proceeds to be divided among the conspirators.
During the course of the investigation, members of the task force identified certain “hot spots” of activity and intercepted more than $22 million in refund checks – that had been applied for fraudulently – before they were delivered to members of the conspiracy.
Sentencing for Pinski is scheduled for March 3, 2014, and sentencing for Senatore is scheduled for March 5, 2014.
U.S. Attorney Fishman praised special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; the U.S. Secret Service, under the direction of Special Agent In Charge James Mottola; and the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl Kotowski, for the investigation leading to today’s this week’s guilty pleas.
The government is represented by Assistant U.S. Attorneys Mala Ahuja Harker, Lakshmi Srinivasan Herman, Zach Intrater, and Danielle Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
13-447
Defense Counsel: David Pinski: Samuel DeLuca Esq., Jersey City, N.J.
Michael Senatore: Christopher Patella Esq., Bayonne, N.J.Pinski, David Information
Senatore, Michael Information-
Two Alaska Men indicted for drug and gun crimes, including conspiracy to distribute heroinRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two men have been indicted by a federal grand jury on charges that they conspired to distribute large quantities of heroin. One was also indicted on related gun charges.
James Gwaltney and Baretta Faatafuga, both 37, and residents of the State of Alaska, were charged with conspiring to distribute and to possess with the intent to distribute 1 kilogram or more of heroin. They were also charged in a separate count with attempting to actually possess the narcotics with the intent to distribute them to others. Faatafuga, a convicted felon, also faces a charge of being a felon in unlawful possession of multiple firearms.
Assistant U.S. Attorney Stephanie Courter, who presented the case to the grand jury, indicated that both men face a ten-year mandatory minimum sentence on the drug charges, with a maximum sentence of up to life in prison. The law also provides for a fine of up to $10 million dollars. Faatafuga faces a separate sentence of up to 10 years in prison on the gun charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.The United States Postal Inspection Service, the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that resulted in the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Three Takata Corp. Executives Agree to Plead Guilty to Participating in Global Seatbelt Price Fixing ConspiracyRead the Press Release
Three high-level executives of Tokyo-based Takata Corp. have agreed to plead guilty for their participation in a conspiracy to fix prices of seatbelts installed in cars sold in the United States, the Department of Justice announced today. The executives have also agreed to serve time in a U.S. prison.
According to the one-count felony charges filed separately against each of the executives today in the U.S. District Court for the Eastern District of Michigan in Detroit, Yasuhiko Ueno, Saborou Imamiya and Yoshinobu Fujino participated in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of seatbelts sold to Toyota Motor Corp., Honda Motor Co. Ltd., Nissan Motor Co. Ltd., Fuji Heavy Industries Inc. – more commonly known by its brand name, Subaru – and Mazda Motor Corp. in the United States and elsewhere. The three executives have agreed to serve prison sentences ranging from 14 to 19 months, and to cooperate with the department’s ongoing investigation.
Ueno was employed by Takata’s Auburn Hills, Mich.-based U.S. subsidiary, TK Holdings Inc., in the United States as senior vice president for sales for Japanese manufacturers from at least January 2006 through December 2007. From early 2008 through June 2009, Ueno was employed by Takata in Japan as deputy division director of the customer relations division, and as director of the customer relations division from June 2009 through at least February 2011. According to the charge, Ueno’s involvement in the conspiracy lasted from at least as early as January 2006 until at least February 2011. Ueno has agreed to serve 19 months in prison and to pay a $20,000 criminal fine.
Imamiya was employed by Takata in Japan as general manager for Toyota sales from at least January 2008 to July 2009, and as director of the customer relations division from July 2009 through at least February 2011. According to the charge, Imamiya’s involvement in the conspiracy lasted from at least as early as January 2008 until at least February 2011. Imamiya has agreed to serve 16 months in prison and to pay a $20,000 criminal fine.
Fujino was employed by Takata in Japan as the manager of the Toyota group within the customer relations division from at least January 2004 through June 2005, and as the manager of the Mazda group within the customer relations division from June 2005 through the end of 2007. From the beginning of 2008 through at least February 2011, Fujino was employed by TK Holdings in the United States as assistant vice president for sales for Japanese manufacturers. According to the charge, Fujino’s involvement in the conspiracy lasted from at least as early as January 2004 until at least February 2011. Fujino has agreed to serve 14 months in prison and to pay a $20,000 criminal fine.
Takata Corp. is a manufacturer of automotive occupant safety systems, including seatbelts. Seatbelts are safety strap restraints designed to secure an occupant in position in a vehicle in the event of an accident, and may be sold bundled with related parts according to the needs of the automobile manufacturer. According to the charges, the Takata executives and their co-conspirators carried out the conspiracy by, among other things, agreeing during meetings and communications to coordinate bids submitted to the automobile manufacturers.
On Sept. 26, 2013, Gary Walker, an executive of TK Holdings Inc., agreed to plead guilty and serve a sentence of 14 months in prison for his involvement in the same conspiracy. On Oct. 9, 2013, Takata Corp. agreed to plead guilty for its involvement in the conspiracy and to pay a criminal fine of $71.3 million.
Each of the executives is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Including today’s charges, 24 individuals have been charged in the department’s investigation into price fixing and bid rigging in the auto parts industry. Additionally, 21 corporations have been charged.
The current prosecution arose from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the National Criminal Enforcement Section, with the assistance of the Detroit, Michigan, Field Office of the FBI. Anyone with information concerning the focus of this investigation should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the Detroit Field Office of the FBI at 313-965-2323.
Three More Eagle Pass Businessmen Indicted in Connection with Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Eagle Pass this morning, Federal Bureau of Investigation agents along with Texas Department of Public Safety investigators arrested 64-year-old Saul Lombrana, owner and operator of Fiesta Contractors based in Eagle Pass, in connection with an alleged bribery, kickback and bid-rigging scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
Lombrana is charged by a federal grand jury indictment returned yesterday with one count of paying a bribe to an agent of an organization receiving federal funds. According to the indictment, in March 2011, Lombrana submitted a $14,500 bid to construct 155 linear feet of concrete drain swell on Rafael Street in Precinct 1. Lombrana was awarded the contract. The indictment alleges that Lombrana never constructed the concrete drain swell, but requested and received full payment for the project. The indictment also alleges that in exchange for being awarded the contract, Lombrana paid a monetary bribe to a Maverick County employee.
In addition to indicting Lombrana, the federal grand jury sitting in Del Rio returned separate indictments against 46–year-old Alejandro Wheeler, owner and operator of TVAW, a media outlet based in Eagle Pass, and 55–year-old Marcelo Alvarez, a surveyor and consultant in Maverick County. Alvarez surrendered to federal authorities this morning. Authorities are still looking for Wheeler.
Wheeler is charged with one count of aiding and abetting paying a bribe to an agent of an organization receiving federal funds and one count of aiding and abetting theft concerning programs receiving federal funds. According to his indictment, in 2010 and 2011, Wheeler and Maverick County commissioners devised a scheme to have two contractors awarded Maverick County construction contracts. As part of the scheme, Wheeler allegedly received money from the contractors and the commissioners received bribes from the construction funds as well as discounted campaign advertising and media time.
Alvarez is charged with one count of paying a bribe to an agent of an organization receiving federal funds. According to his indictment, from 2010 to 2012, Alvarez corruptly paid money to Maverick County officials, including two county commissioners, in order to guarantee that engineering, project management and consulting services contracts valued at approximately $800,000 were awarded to a specific company. Alvarez, in turn, was designated as the Resident Project Representative on those projects and received payment for his services.
Upon conviction each charge calls for up to ten years in federal prison and a maximum $250,000 fine.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorneys Michael Galdo and Bryan Reeves are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Three Aryan Brotherhood of Texas Gang Members <br /> Plead Guilty to Federal Racketeering ChargesRead the Press Release
Three members of the Aryan Brotherhood of Texas (ABT) gang have pleaded guilty to racketeering charges related to their membership in the ABT’s criminal enterprise, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Sammy Keith Shipman, aka “Stubby,” 31, of Houston, pleaded guilty today before U.S. Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
William David Maynard, aka “Baby Huey,” 43, of Houston, pleaded guilty Nov. 20, 2013, and Dustin Lee Harris, aka “Lightning,” 29, of Dallas, pleaded guilty Nov. 19, 2013. Each defendant pleaded guilty to one count of conspiracy to participate in racketeering activity.
According to court documents, Shipman, Maynard, Harris 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. The defendants and numerous other 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.By pleading guilty to racketeering charges, Shipman, Maynard and Harris admitted to being members of the ABT criminal enterprise and to committing multiple acts of violence and/or narcotics trafficking 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, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforces its rules and promotes 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, are 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.
At sentencing, scheduled for Feb. 20, 2014, Shipman, Maynard and Harris each face a maximum penalty of life in prison.
Shipman, Maynard and Harris are three of 36 defendants charged with, among other things, conducting racketeering activity through the ABT criminal enterprise. To date, 17 defendants have pleaded guilty.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; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.
The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Southern District of Texas.Three Aryan Brotherhood of Texas Gang Members Plead Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON – Three members of the Aryan Brotherhood of Texas gang (ABT) pleaded guilty to racketeering charges related to their membership 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.
Sammy Keith Shipman, aka “Stubby,” 31, of Houston, pleaded guilty today before U.S. Judge Sim Lake to one count of conspiracy to participating in racketeering activity.
William David Maynard, aka “Baby Huey,” 43, of Houston, pleaded guilty Nov. 20, 2013. Dustin Lee Harris, aka “Lightning,” 29, of Dallas, pleaded guilty Nov. 19, 2013. Each defendant pleaded guilty to one count of conspiracy to participating in racketeering activity.
According to court documents, Shipman, Maynard, Harris 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. The defendants and numerous other 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.
By pleading guilty to racketeering charges, Shipman, Maynard and Harris admitted to being members of the ABT criminal enterprise and committing multiple acts of violence and/or narcotics trafficking 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, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT 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.
At sentencing, scheduled for Feb. 20, 2014, Shipman, Maynard and Harris each face a maximum penalty of life in prison.
Shipman, Maynard and Harris are four of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 18 defendants have pleaded guilty.
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.
Ten San Jose Gang Members and Associates Arrested on Federal Drug Trafficking ChargesRead the Press Release
SAN JOSE – Raul Morfin was arraigned today in federal court in San Jose on methamphetamine distribution charges, United States Attorney Melinda Haag announced.
Morfin represents the tenth defendant arrested on federal drug trafficking charges as part of a proactive operation by the Federal Bureau of Investigation’s Santa Clara County Violent Gang Task Force targeting gang members selling methamphetamine in Santa Clara County.
The defendants include the reputed “matriarch” of the Sureño gang “8th Street Gilroy” (Maria Salinas), alleged co-conspirator brothers affiliated with the Sureño gang “Varrio Mexicanos Locos” (Jairo and Filiberto Quintana), an alleged co-conspirator mother and daughter combination associated with the Sureño gang “Varrio Sur Town” (Laura Garcia and Vanessa Pulido), and known members and associates of the Sureño gangs “Colonias,” “Poco Way,” and “Varrio Paisanos Locos.” All but one of the defendants has thus far been detained pre-trial, thereby disrupting a substantial gang presence within Santa Clara County.
As set forth below, the ten defendants are charged in eight separate indictments with distributing and conspiring to distribute methamphetamine and, in one case, possessing a firearm in furtherance of drug trafficking.
Defendant Charges Docket Number Next Court Appearance EDUARDO ARRIAGA a/k/a “Moreno” Distribution of Methamphetamine and Possession of a Firearm in Furtherance of Drug Trafficking CR 13-00510 EJD 12/02/2013 LAURA GARCIA
a/k/a “Blinky” and
VANESSA PULIDO
a/k/a “Bunny” Distribution of Methamphetamine and Conspiracy to Distribute Methamphetamine CR 13-00508 LHK 12/04/2013 RAFAEL MEDINA
a/k/a “Conejo” Distribution and Conspiracy to Distribute Methamphetamine CR 13-00507 LHK 12/04/2013 RAUL VALLE MORFIN a/k/a “Green Eyes” Distribution of Methamphetamine CR 13-00509 DLJ 11/26/2013 JESUS QUINONES
a/k/a “Canas” Distribution of Methamphetamine CR 13-00503 DLJ 01/09/2014 JAIRO QUINTANA
a/k/a “Hido” and FILIBERTO QUINTANA a/k/a “Peewee” Distribution of Methamphetamine and Conspiracy to Distribute Methamphetamine CR 13-00506 LHK 12/18/2013 MARIA SALINAS
a/k/a “Grumpy” Distribution of Methamphetamine CR 13-00504 LHK 02/12/2014 ULYSSES VASQUEZ a/k/a “Dreamer” Distribution and Conspiracy to Distribute Methamphetamine CR 13-00502 RMW 11/25/2013The maximum penalty that defendants Vasquez and Arriaga face upon conviction is life imprisonment. At this time, the other eight defendants face a maximum penalty of 40 years in prison. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Stephen Meyer and Special Assistant U.S. Attorney Casey O’Neill are prosecuting these cases with the assistance of Nina Burney, Tracey Andersen and Susan Kreider. The prosecution is the result of an investigation by the Federal Bureau of Investigation’s Santa Clara County Violent Gang Task Force.
Please note, an indictment contains only allegations against an individual and, as with all defendants, these defendants must be presumed innocent unless and until proven guilty.
(Arriaga indictment )(Garcia & Pulido indictment )(Morfin indictment )
(Medina indictment )(Quinones indictment )(Quintana indictment )
(Salinas indictment )(Vasquez indictment )
Superseding Indictment Returned Charging Father and Son with Sex Trafficking OffensesRead the Press Release
A federal grand jury in Milwaukee has returned an 11-count superseding indictment adding David B. Moore, 45, as a defendant in the federal sex trafficking case involving his son, Najee Moore, 22.
Both men are charged with conspiracy to engage in the sex trafficking and forced labor of a minor and sex trafficking of a minor. David Moore is also charged with soliciting his son to engage in sex trafficking. Najee Moore is charged with an additional conspiracy to engage in sex trafficking and forced labor, two counts of sex trafficking of an adult, attempted sex trafficking of a minor, attempted forced labor, evidence tampering and attempted witness tampering. The previous indictment in the case, returned on June 18, 2013, charged only Najee Moore with sex trafficking, attempted forced labor and related offenses.
According to the superseding indictment, between February 2008 and December 2009 David Moore and Najee Moore conspired to compel a minor to engage in prostitution and strip club dancing and caused that minor to engage in acts of prostitution. In July 2011, David Moore allegedly solicited his son to engage in further acts of sex trafficking. Between 2011 and 2013, Najee Moore allegedly engaged in the conduct charged in the remaining counts.
Both Moores face a statutory maximum sentence of life imprisonment.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty.
The case is being investigated by the FBI, the Milwaukee Police Department, DHS Homeland Security Investigations and the Wisconsin Department of Criminal Investigation. The case is being jointly prosecuted by Assistant U.S. Attorney Karine Moreno-Taxman and Trial Attorney Daniel H.Weiss of the Civil Rights Division's Human Trafficking Prosecution Unit.
Superceding Indictment Charges Two Six Gang Members with Murder in Aid of RacketeeringRead the Press Release
DESK: (219) 937-5603
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - United States Attorney David Capp announced that a Superseding Indictment was returned yesterday charging Jesus Valentin Fuentes, 39, of Chicago and East Chicago, Kiontay Kyare Pennington, 34, of Gary, Indiana, Oscar Cosme, 41, of East Chicago, Indiana andAdron Herschel Tancil, 36, of East Chicago, Indiana,for the May 16, 2003 murder of Julio Cartagena in East Chicago, Indiana.
The indictment alleges that Fuentes was one of the local leaders of the Two Six Nation, a violent criminal enterprise.In November 2003, Fuentes directed members of the Two Six to kidnap the family of Julio Cartagena (Cartagena was also a member of the Two Six), in an effort to recover a large quantity of cocaine stolen by Cartagena from Fuentes.Henderson, Pennington and other Two Six members allegedly kidnapped Cartagena’s children and mother of his children at gunpoint from their home in Hammond, Indiana.Hammond Police soon were able to rescue the family, none were harmed.
Thereafter, the indictment alleges that Fuentes directed Two Six members to kidnap Julio Cartagena.On May 16, 2003, Louis Henderson, Pennington, and Tancil, all alleged Two Six members, and Oscar Cosme, an associate of Henderson, shot and killed Cartagena in East Chicago during an attempted kidnapping.After the shooting these four individuals sped away in a vehicle driven by Henderson.The vehicle crashed and Henderson was killed.
Count 1 of the indictment charges Pennington, Tancil and Fuentes with murder in aid of racketeering and kidnapping.
Count 2 of the indictment charges Pennington, Cosme, Tancil and Fuentes with the use of a firearm during and in relation to a drug trafficking crime (distribution of cocaine) and crimes of violence (murder and kidnapping).
These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives Merrillville Field Office, the Bureau of Alcohol Tobacco Firearms and Explosives HIDTA Taskforce, the Federal Bureau of Investigation, the East Chicago Police Department and the Hammond Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney David J. Nozick.
The United States Attorney's Office emphasized that an indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Statement Regarding Marijuana Enforcement ActionRead the Press Release
In response to multiple media questions regarding today’s drug enforcement action, the U.S. Attorney’s Office issued the following updated statement:
“While the investigation is ongoing, there are strong indications that more than one of the eight federal prosecution priorities identified in the Department of Justice’s August guidance memo are potentially implicated.”
Jeff Dorschner, Spokesman, U.S. Attorney’s Office
The initial statement issued regarding today’s enforcement action follows:
“The Drug Enforcement Administration, Internal Revenue Service Criminal Investigations, the Denver Police Department and state and local law enforcement are today executing lawfully obtained search warrants and seizure warrants. One important note: Although we cannot at this time discuss the substance of this pending investigation, the operation under way today comports with the Department’s recent guidance regarding marijuana enforcement matters. As this is an on-going investigation, no additional information will be made available.”
Jeff Dorschner, Spokesman, U.S. Attorney’s Office
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St. Francis Man Charged with Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
Cyrus Black Spotted Horse, age 32, was indicted on November 14, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 19, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Black Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Black Spotted Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Souderton Man Charged in Child Pornography IndictmentRead the Press Release
Ian H. Ranberg, 47, of Souderton, PA, was charged today by Indictment1 with receipt, distribution and possession of child pornography, announced United States Attorney Zane David Memeger. According to the indictment, Ranberg received images of child pornography between May 23, 2012 and May 29, 2012, and between August 19, 2012 and September 19, 2012. It is further alleged that on February 2, 2013, Ranberg distributed a video containing child pornography. The indictment also alleges that on August 21, 2013, Ranberg was in possession child pornography on his computers and external hard drives.
If convicted of all charges, Ranberg faces a maximum possible sentence of 70 years in prison, including a five year mandatory minimum, a minimum of five years but up to a lifetime of supervised release, fines of up to $1 million, and $400 in special assessments.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Jessica Natali.
Click here to view the indictment
1An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Sentences for November 18– 20, 2013Read the Press Release
Amanda Rae Torres, 38, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on November 20, 2013, for conspiracy to possess with intent to distribute, and to distributing approximately 140 grams of methamphetamine. Torres was arrested in Cheyenne, Wyoming. She received 36 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Christy Speaker, 34, of Eaton, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on November 19, 2013, for conspiracy to possess with intent to distribute, and to distributing at least 1.5 but no more than 5 kilograms of a mixture or substance containing a detectable amount of methamphetamine. Speaker was arrested in Cheyenne, Wyoming. She received 168 months imprisonment, to be followed by five months of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Kerina Willson, 28, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on November 19, 2013, for conspiracy to possess with intent to distribute, and to distributing at least 500 grams but not more than 1.5 kilograms of a mixture or substance containing a detectable amount of methamphetamine. Willson was arrested in Casper, Wyoming. She received 78 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and a $200.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
John Wayne Thomas, 40, of Torrington, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on November 18, 2013, for conspiracy to possess with intent to distribute, and to distributing at least 200 but less than 350 grams of methamphetamine. Thomas was arrested in Torrington, Wyoming. He received 151 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Second Superseding Indictment Returned Charging Former Pennsylvania State Senator Raphael J. MustoRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a second superseding indictment has been returned against former State Senator Raphael J. Musto, Pennsylvania 14th Senatorial District. This new indictment amends previous charges brought against Senator Musto, who is currently scheduled for trial on January 6, 2014.
According to United States Attorney Peter J. Smith, Senator Musto, age 85, of Pittston, was originally charged in an indictment in November 2011. Those charges alleged that Senator Musto accepted $25,000 cash payment from a construction contractor whom had developed various properties in Lackawanna and Luzerne Counties. Senator Musto accepted the $25,000 in cash, as well as other things of value from the contractor, as part of a stream of benefits designed to secure Senator Musto’s continued support of various construction projects which were to the financial benefit of the company.In addition, Senator Musto was alleged to have accepted thousands of dollars in cash from another individual affiliated with Northeast Pennsylvania municipal authorities. That cash payment was accepted by Senator Musto as a reward for prior official action taken by the senator where he assisted the municipal authorities obtain loans and grants. In addition, Senator Musto accepted these funds intending to be influenced in his future official decisions.
In October 2012, the original indictment was superseded by a grand jury to include two new charges of public corruption. In 2006, Senator Musto is alleged to have accepted $1,000 and other benefits from an individual affiliated with a municipality in return for his assistance with passing through a loan application for the municipality. Senator Musto is alleged to have done the same, for the same individual, in 2008, again in return for his assistance with the passage of a loan application for local municipalities.The Indictment returned Wednesday amended portions of this indictment to include a broader array of things of value provided to Senator Musto and changed one of the charges in the indictment.
In October 2012, attorneys for Senator Musto filed a motion with the court to dismiss the pending charges, or to indefinitely postpone the trial, because of Senator Musto’s physical health. The government objected to this request and Senior United States District Court Judge A. Richard Caputo agreed. The defense appealed this decision to the Third Circuit Court of Appeals. The appeals court denied the appeal and on October 22, 2013, the case was returned to Judge Caputo who scheduled it for trial on January 6, 2014.
On November 15, 2013, Senator Musto filed a renewed motion with the court to indefinitely postpone the trial. In this latest motion, the defense has identified the senator’s deteriorating physical health as well was his mental competency to stand trial as reasons for the trial postponement. The United States has not agreed with this request and will be filing a response asking Judge Caputo to schedule a hearing where the defense will be required to prove that Senator Musto is unable to withstand trial and/or assist his attorneys.This case is part of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service and is being prosecuted by a team of federal prosecutors led by Senior Litigation Counsel Gordon Zubrod and includes Assistant U.S. Attorneys William Houser, Michael Consiglio, Amy Phillips John Gurganus and Criminal Division Chief Christian Fisanick.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
San Antonio Businessman Pleads Guilty to Role in $133 Million Real Dollar Loss Fraud and Tax CaseRead the Press Release
In San Antonio this morning, 61-year-old businessman Charles Pircher pleaded guilty to his role in what is believed to be the largest real dollar loss fraud and tax related case ever prosecuted in the Western District of Texas announced United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez and IRS-Criminal Investigation Special Agent In Charge Steve McCullough.
“This was a wide ranging and complex scheme, whose simple purpose was to steal money from company payroll by diverting tax and insurance payments all for personal enrichment. Pircher cheated clients and the taxpayers for years,” stated United States Attorney Robert Pitman.
Appearing before United States Chief District Judge Fred Biery, Pircher pleaded guilty to a Klein tax fraud conspiracy charge and a mail fraud conspiracy charge. According to the factual basis filed in this case, from 2002 to 2008, Pircher managed a series of Professional Employer Organizations (PEOs) based in San Antonio, including Service Professionals, which entered into staff leasing agreements with various client companies to manage their payroll and insurance programs. By pleading guilty, Pircher admitted that he and other co-conspirators stole more than $133 Million directly from their client companies’ programs.
Pircher faces up to 20 years in federal prison on the mail fraud conspiracy charge and up to five years in federal prison on the Kline tax fraud conspiracy charge. Sentencing has yet to be scheduled.
This investigation, conducted by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation, has resulted in guilty pleas by five defendants—Pircher; John D. Walker, II; John Bean; Mike Solis; and Pat Mire. A sixth defendant, San Antonio businessman Larry W. Kimes, is scheduled for jury selection and trial on January 23, 2014. Kimes is charged by federal grand jury indictment with one count of Klein tax fraud conspiracy, two counts of mail fraud conspiracy, one count of money laundering conspiracy and one substantive count of money laundering.
Assistant United States Attorney Thomas J. McHugh is prosecuting this case on behalf of the Government.
Russellville, Kentucky Convicted Felon Charged with Distribution of A Controlled Substance and Possession of A FirearmRead the Press Release
– Formerly convicted of first-degree murder, promoting contraband and trafficking in a controlled substance
BOWLING GREEN, Ky. – A Logan County, Kentucky man formerly convicted of facilitation to murder, promoting contraband, and trafficking in a controlled substance was indicted by a federal grand jury in Bowling Green, Kentucky this week, on multiple charges of distribution of a controlled substance and possession of a firearm by a convicted felon, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Kelly Dewayne Morris, a/k/a Kelly Crenshaw, age 35, was charged with being a felon in possession of a Taurus, model 856, .38 Special revolver, and five rounds of .38 Special ammunition, possession of body armor, and three counts of possession and distribution of crack cocaine.
According to the indictment, between August 1, 2013 and October 18, 2013, in Logan County, Kentucky, Morris is alleged to have possessed the firearm and body armor, and distributed crack cocaine to a confidential informant.
Morris was convicted of robbery and facilitation to murder in Todd County, Kentucky, Circuit Court on January 21, 2009. Further, Morris was convicted of promoting contraband in Warren County, Kentucky, Circuit Court on July 5, 2001, and Trafficking in cocaine in Logan Circuit Court on February 15, 1999.
If convicted at trial, Morris faces a term of 133 years in prison, a fine of $4.5 million, and a 30 year term of supervised release.
This case is being prosecuted by Assistant United States Attorney Mac Shannon and is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the South Central Kentucky Drug Task Force.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Rosebud Man Charged with Possession of Child PornographyRead the Press Release
United States Attorney Brendan V. Johnson announced that Jeremy Gunhammer, age 20, of Rosebud, South Dakota, appeared before U.S. District Judge Roberto A. Lange on November 19, 2013, and pled guilty to Possession of Child Pornography.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund.
The conviction stems from incidents that took place between January 1, 2013, and May 31, 2013, when Gunhammer would use the internet to receive and possess images of child pornography. Gunhammer knew that the child pornography images were produced using material that had been mailed and shipped and transported in interstate and foreign commerce by means of computer, cellular phone, Facebook, and other online services.
The investigation was conducted by the Federal Bureau of Investigation, South Dakota Division of Criminal Investigation, South Dakota Internet Crimes Against Children Task Force, Rosebud Sioux Tribe Law Enforcement Services, Bureau of Indian Affairs, Pennington County Sheriff’s Office, Rapid City Police Department, Sioux Falls Police Department and the U.S. Marshals Service. Assistant U.S. Attorneys Tim Maher and Sarah Collins are prosecuting the case.
A presentence investigation was ordered and a sentencing date was set for January 27, 2013. The defendant was released on conditions pending sentencing.
Rosebud Man Charged with Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that Jason Riley, age 36, of Rosebud, South Dakota, appeared before U.S. District Judge Roberto A. Lange on November 19, 2013, and pled guilty to Assault Resulting in Serious Bodily Injury.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.
On October 13, 2010, Jason Riley was at the Sicangu Village Housing on the Rosebud Sioux Indian Reservation. The victim approached Riley and asked for a cigarette. A verbal disagreement ensued and Riley struck the victim in the face and kicked the victim with shod feet while the victim was on the ground. The victim suffered multiple abrasions, soft tissue bruising, and a nose bone fracture.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Tim Maher.
A presentence investigation was ordered and a sentencing date was set for February 10, 2014. Riley was released pending sentencing.
Richland Woman Sentenced to Prison for Threatening A Federal AgentRead the Press Release
Jackson, Miss – Bridget Veronica Medlock, 19, was sentenced to six months in federal prison for threatening to kill a federal agent during the performance of his official duties, announced U.S. Attorney Gregory K. Davis and Trey Lund, Director of U.S. Immigration and Customs Enforcement (ICE) - New Orleans Field Office. Medlock was also ordered to pay a partial fine of $1,500. She will report to the Bureau of Prisons on January 13, 2014.
Medlock pled guilty to threatening to kill a federal official on March 21, 2013. The federal agent was threatened by Medlock while making a lawful arrest. Medlock drove her car at a high rate of speed toward the officer’s government issued vehicle and further stated that she was going to kill the agent. Medlock’s offensive conduct continued as she drove away at a high rate of speed. She was finally arrested by Richland Police officers and ICE agents at a home in Richland.
“Federal officers performing their lawful duties deserve the respect and cooperation of the public. Threats made against federal officers will be taken seriously, investigated and prosecuted,” said U.S. Attorney Davis.
"U.S. Immigration and Customs Enforcement will continue to focus resources on violent criminals who pose the greatest threat to our communities," said New Orleans Field Office Director Trey Lund. "This case illustrates our close cooperation with the U.S. Attorney’s Office to successfully prosecute dangerous individuals."###
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Probationary Buffalo Police Officer Arrested, Charged with Drug ChargesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that James Hamilton, Sr., 29, of Buffalo, N.Y., was arrested and charged by criminal complaint with possession with intent to distribute and distribution of marijuana; manufacturing and possession with intent to distribute 50 or more marijuana plants; maintaining a premises for the purpose of manufacturing and distributing marijuana; and possession of a firearm in furtherance of a drug trafficking crime. The charges carry a minimum sentence of five years in prison, a maximum of life, a $2,000,000 fine or both.
“Those who take an oath to uphold the law are held to the highest stand of conduct and the vast majority of officers do just do that,” said U.S. Attorney Hochul. “Whether experienced or new to their position, this office will not hesitate to act when it receives evidence of criminal wrongdoing involving an officer. Thanks to the hard work of our law enforcement partners, this case was brought to its conclusion within 24 hours of it being brought to our attention.”
Drug Enforcement Administration Special Agent in Charge Brian R. Crowell stated, "This officer’s actions have disgraced the men and women of law enforcement who work to keep our cities, states and nation safe. Just this week, the largest medical group in the United States issued a statement outlining the public health harms of marijuana, which is the illicit drug that Hamilton produced and sold out of his house for profit, fueling the marijuana supply and health dangers in the Buffalo area. When dirty cops tarnish the badge of those they have sworn to protect, their selfish acts disregard their pledge to protect the citizens of Buffalo." Special Agent in Charge Crowell commends the DEA Buffalo Resident Office, Buffalo Police Department, Erie County Sheriff’s Department and U.S. Attorney’s Office for their quick and effective joint investigation.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that according to the complaint, on November 20, 2013, Hamilton, a probationary Buffalo Police Officer, sold two ¼ pound quantities of marijuana for $1,100 to a confidential source in the area of Bailey and Broadway in the City of Buffalo. The defendant was then called down to Buffalo Police Headquarters at which time he was arrested. Hamilton was found in possession of his department issued firearm at the time of his arrest.
Subsequently, a search warrant was executed at the defendant’s residence at 165 Floss Avenue in Buffalo. During the search, officers discovered a marijuana grow operation in the basement of Hamilton’s house which included 82 plants and approximately four pounds of harvested marijuana. In addition, officers recovered a shotgun in the defendant’s bedroom.
Hamilton is scheduled to make an initial appearance at 2:15 p.m. this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder.
The criminal complaint is the culmination of an investigation by the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
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.
Prison Camp Inmate Sentenced to an Additional 5 Years in Prison for EscapeRead the Press Release
David J. Pederson, 55, formerly an inmate at the Federal Prison Camp at Marion, Illinois, was sentenced today in United States District Court in Benton to a term of 60 months in prison for escaping from custody while on an unescorted transfer via bus between that facility and one in Council Bluffs, Iowa, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. Pederson previously pled guilty to the escape charge on July 11th. At the time of the escape on March 26, 2013, Pederson was serving the final few months of a 71 month federal sentence for bank robbery imposed in the Southern District of Iowa.
Evidence supporting the guilty plea and sentence showed that Pederson left his authorized transfer route while at the Greyhound bus station in Mt. Vernon, Illinois, and obtained a realistic looking air pistol from a retail store. Using the air pistol, he car-jacked two separate vehicles, taking a total of four individuals hostage including two women and two children. The first car-jacking victim was able to escape even though Pederson had bound her hands. He was later arrested with the three hostages from the second car-jacking, a mother and her two children, in Nashville, Illinois. On May 7, 2013, Pederson pled guilty in Jefferson County Circuit Court to charges relating to the car-jackings and was sentenced to a 20 year term of imprisonment in the Illinois Department of Corrections.
The 60 month federal sentence was imposed consecutively to the 20 year state sentence and any portion of his previous 71 month federal sentence which the Federal Bureau of Prisons determines is left to be served. Pederson was also ordered to pay a $100 special assessment and placed on a 3 year term of supervised release to follow his incarceration.
Following sentencing, Pederson was returned to the custody of the Illinois Department of Corrections to first serve out his 20 year state sentence.
The case was investigated by the United States Marshal’s Service and the Mt. Vernon Police Department.
The case was prosecuted by Assistant United States Attorney James M. Cutchin.
Pine Ridge Woman Pleads Guilty to LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that Philana Red Feather, a/k/a Philana Garcia, age 37, of Pine Ridge, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy on November 15, 2013, and pled guilty to misdemeanor Larceny.
The maximum penalty upon conviction is 1 year imprisonment and a $100,000 fine.
The charge relates to Red Feather and others stealing items from a house in Pine Ridge in the early morning hours of December 15, 2012. The stolen items included, but were not limited to, an air compressor, tools, electronic devices, DVDs, games, and jewelry.
The investigation was conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.
Pierre Man Charged with Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pierre, South Dakota, man has been indicted by a federal grand jury.
Edwin Clayton Cook, Jr., age 37, was indicted on November 14, 2013, for Distribution of a Controlled Substance. Cook appeared before U.S. Magistrate Judge Mark A. Moreno on November 19, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years of imprisonment and/or $1,000,000 fine, at least 3 years of supervised release, an additional 2 years of supervised release upon revocation, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Cook is presumed innocent until and unless proven guilty.
The Indictment alleges that on or about June 12, 2013, Cook knowingly and intentionally distributed a mixture and substance containing a detectable amount of methamphetamine.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Cook was released on bond pending trial which has not been set.
Parmelee Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmelee, South Dakota, man convicted of Assaulting, Resisting, Opposing, and Impeding a Federal officer was sentenced on November 20, 2013, by U.S. District Judge Roberto A. Lange.
William Rahn, age 27, was sentenced to 5 months in custody, 5 months of home confinement, 1 year of supervised release, and $100 to the Federal Crime Victims Fund.
Rahn was indicted by a federal grand jury on May 16, 2013, and pled guilty to the charge on August 30, 2013.
The charge stems from an incident wherein Rahn was driving erratically, attempting to elude Bureau of Indian Affairs police officers on the Rosebud Sioux Indian Reservation. He drove his vehicle directly at a parked police unit, coming within feet of hitting the vehicle. When Rahn finally stopped his vehicle on a dirt road, he resisted the officers and that resistance involved physical contact with an officer.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Rahn was remanded to the custody of the U.S. Marshals Service.
Owner of Home Health Companies Sentenced for Role in <br /> $20 Million Health Care Fraud SchemeRead the Press Release
The owner and operator of several Miami health care agencies was sentenced today to serve 120 months in prison for his role in a health care fraud scheme involving defunct home health care company Trust Care Health Services Inc.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office; and Acting Special Agent in Charge Michael J. DePalma of the Internal Revenue Service—Criminal Investigation’s (IRS-CI) Miami Field Office made the announcement.
Roberto Marrero, 60, of Miami, was sentenced by U.S. District Judge K. Michael Moore in the Southern District of Florida. In September 2013, Marrero pleaded guilty to conspiracy to commit health care fraud and conspiracy to receive and pay health care kickbacks.
Marrero was an owner and operator of Trust Care, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries.
Co-conspirators Sandra Fernandez Viera, 49, Patricia Morcate, 34, and Enrique Rodriguez, 59, all of Miami, have also pleaded guilty to related charges, including conspiracy to commit health care fraud and conspiracy to receive and pay health care kickbacks. On Nov. 13, 2013, Fernandez Viera was sentenced to serve 120 months in prison; Morcate was sentenced to serve 60 months; and Rodriguez was sentenced to serve 57 months.
Together with Marrero, Fernandez Viera was an owner and operator of Trust Care. Morcate worked at and was an investor in Trust Care. Rodriguez served as a patient recruiter on behalf of Trust Care.
According to court documents, Marrero and his co-conspirators operated Trust Care for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
Marrero primarily controlled Trust Care and, in light of that role, oversaw the schemes operating out of the company. Marrero was also responsible for negotiating and paying kickbacks and bribes, interacting with patient recruiters, and coordinating and overseeing the submission of fraudulent claims to the Medicare program.
Marrero and his co-conspirators paid kickbacks and bribes to patient recruiters in return for the recruiters providing patients to Trust Care for home health and therapy services that were medically unnecessary and/or not provided. Marrero and his co-conspirators at Trust Care also paid kickbacks and bribes to co-conspirators in doctors’ offices and clinics in exchange for home health and therapy prescriptions, medical certifications and other documentation. Marrero and his co-conspirators used these prescriptions, medical certifications and other documentation to fraudulently bill the Medicare program for home health care services, which Marrero knew was in violation of federal criminal laws.
From approximately March 2007 through at least October 2010, Trust Care submitted more than $20 million in claims for home health services. Medicare paid Trust Care more than $15 million for these fraudulent claims.
Marrero and his co-conspirators have also acknowledged their involvement in similar fraudulent schemes at several other Miami health care agencies in addition to Trust Care with estimated total losses of approximately $50 million. Those agencies include A&B Health Services Inc. , Centrum Home Health Care Inc., Global Nursing Home Health Inc., Lovable Home Health Services Corp., New Concepts In Health Inc., Nursemed Home Care Corp., R&M Health Care Inc., Ubieta Health System Inc., and Vital Care Home Health Services Inc.
The case was investigated by the FBI and HHS-OIG, with the assistance of IRS-CI, and was brought as part of the Medicare Fraud Strike Force initiative, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case was prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.govOwner of York County Business ArrestedRead the Press Release
NEWPORT NEWS, Va. – Salvatore Lopiccolo, 35, of Newport News, Va.; Matthew Kidd-Hux, 21, of New Carrollton, MD; John Woodin, 28, of Hampton, Va.; Marcus Woods, 28, of Hampton, Va.; and Meghan Stout, 21, of Gloucester, Va. were arrested today on federal charges of conspiracy and sale and distribution of illegal narcotics, as well as firearm-related charges. The indictment was issued by a federal grand jury in Newport News on November 14, 2014.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, Scot R. Rittenberg, Acting Special Agent in Charge for ICE Homeland Security Investigations (HSI) in Washington, D.C., Captain Timothy Reibel, Virginia State Police, and J. D. “Danny” Diggs, York County, City of Poquoson Sheriff, made the announcement today.Lopiccolo faces a maximum penalty of life imprisonment if convicted. Kidd-Hux faces up to 60 years’ imprisonment, Woodin faces up to 100 years’ imprisonment, Woods and Stout each face up to 40 years’ imprisonment.
Law enforcement agents executed search warrants at the Bonsai Pipe and Tobacco stores in York County and Hampton and at four residences in Newport News and Hampton this morning. The arrests are the culmination of a two-year investigation into illegal drug sales at Bonsai Pipe and Tobacco conducted by Homeland Security Investigations, Internal Revenue Service-Criminal Investigation Division, Customs and Border Protection, U.S. Postal Inspections, Air Force Office of Special Investigation, Coast Guard Investigative Services, York-Poquoson Sheriff’s Office, Newport News Police Department, Hampton Police Division and the Virginia State Police Tri-Rivers and Peninsula Narcotics Enforcement Task Forces. Assistant United States Attorney Eric M. Hurt is prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
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.
.Owner of Home Health Companies Sentenced for Role in $20 Million Health Care Fraud SchemeRead the Press Release
The owner and operator of several Miami health care agencies was sentenced today to serve 120 months in prison for his role in a health care fraud scheme involving defunct home health care company Trust Care Health Services Inc.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami Office; and Special Agent in Charge José A. Gonzalez of the Internal Revenue Service—Criminal Investigation’s (IRS-CI) Miami Field Office made the announcement.
Roberto Marrero, 60, of Miami, was sentenced by U.S. District Judge K. Michael Moore in the Southern District of Florida. In September 2013, Marrero pleaded guilty to conspiracy to commit health care fraud and conspiracy to receive and pay health care kickbacks.
Marrero was an owner and operator of Trust Care, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries.
Co-conspirators Sandra Fernandez Viera, 49, Patricia Morcate, 34, and Enrique Rodriguez, 59, all of Miami, have also pleaded guilty to related charges, including conspiracy to commit health care fraud and conspiracy to receive and pay health care kickbacks. On Nov. 13, 2013, Fernandez Viera was sentenced to serve 120 months in prison; Morcate was sentenced to serve 60 months; and Rodriguez was sentenced to serve 57 months.
Together with Marrero, Fernandez Viera was an owner and operator of Trust Care. Morcate worked at and was an investor in Trust Care. Rodriguez served as a patient recruiter on behalf of Trust Care.
According to court documents, Marrero and his co-conspirators operated Trust Care for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
Marrero primarily controlled Trust Care and, in light of that role, oversaw the schemes operating out of the company. Marrero was also responsible for negotiating and paying kickbacks and bribes, interacting with patient recruiters, and coordinating and overseeing the submission of fraudulent claims to the Medicare program.
Marrero and his co-conspirators paid kickbacks and bribes to patient recruiters in return for the recruiters providing patients to Trust Care for home health and therapy services that were medically unnecessary and/or not provided. Marrero and his co-conspirators at Trust Care also paid kickbacks and bribes to co-conspirators in doctors’ offices and clinics in exchange for home health and therapy prescriptions, medical certifications and other documentation. Marrero and his co-conspirators used these prescriptions, medical certifications and other documentation to fraudulently bill the Medicare program for home health care services, which Marrero knew was in violation of federal criminal laws.
From approximately March 2007 through at least October 2010, Trust Care submitted more than $20 million in claims for home health services. Medicare paid Trust Care more than $15 million for these fraudulent claims.
Marrero and his co-conspirators have also acknowledged their involvement in similar fraudulent schemes at several other Miami health care agencies in addition to Trust Care with estimated total losses of approximately $50 million. Those agencies include A&B Health Services Inc., Centrum Home Health Care Inc., Global Nursing Home Health Inc., Lovable Home Health Services Corp., New Concepts In Health Inc., Nursemed Home Care Corp., R&M Health Care Inc., Ubieta Health System Inc., and Vital Care Home Health Services Inc.
The case was investigated by the FBI and HHS-OIG, with the assistance of IRS-CI, and was brought as part of the Medicare Fraud Strike Force initiative, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case was prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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.
Owner and Salesman Convicted in Time Share Telemarketing FraudRead 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 Pasquale Pappalardo, 60, of Coral Springs, FL, and Audwin Lovinsky, 35, of Tamarac, FL, were both convicted yesterday in federal court in Fort Lauderdale of conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 1349. Pappalardo was also convicted of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956. After the verdicts, defendants were remanded to the custody of the Bureau of Prisons. Defendants are scheduled to be sentenced on January 29, 2014.
In all, 41 defendants were charged for their involvement with a time-share resale telemarketing room called Timeshare Mega Media and Marketing Group, Inc., (TMMMG). The other defendants were charged in Case Nos. 11-60190-Cr-Cohn, 11-60247-Cr-Marra, 11-60268-Cr-Hurley, 12-60019-Cr-Scola, 13-60049-Cr-Dimitrouleas, 12-60149-Cr-Scola, 13-60154-Cr-Scola, and 13-60155-Cr-Dimitrouleas. Aside from the two defendants who were found guilty yesterday, thirty-six defendants previously pled guilty, two remain fugitives, and one is deceased.
According to the evidence presented at trial, in February 2009, Pasquale Pappalardo, also known to the witnesses as “Patsy Ubatz” and “Posh,” and Joseph Crapella, also known to witnesses as “Joey Cigars,” started a branch office of Time Share Market Pro (TMP), a time-share resale business. The testimony at trial was that they knew each other from a previous stint in federal prison. In June 2009, at the direction of Pappalardo and Crapella, their associates took customer files and the electronic database of TMP, among other items, without the knowledge of the owner of TMP.
Pappalardo and Crapella then took the employees and the documents seized from TMP and formed a second time share resale company called TMMMG. In November 2009 and January 2010, TMMMG hired salesmen who worked for other fraudulent telemarketing resale companies, including defendant Lovinsky, who used the phone name of Edwin Lovins. Among the lies they would tell timeshare unit owners, was that they had sold their time-share unit and that they needed to pay a refundable fee to secure the sale. The salesmen would then ask the time share unit owners for a fee of at least $1,996, and as much as $10,000. At no time were there any buyers for the time-share units. The testimony at trial was that both Pappalardo and Crapella were told about the lies being told by the salesmen, but Pappalardo and Crapella would not do anything to stop the salespeople from lying.
During the 10 months that TMMMG was in business, it fraudulently obtained approximately $5,000,000 from about 3,000 customers. Pappalardo received at least $300,000 in checks and hundreds of thousands of dollars in cash from the money sent by victims of TMMMG.
Pappalardo faces a maximum sentence of 40 years in prison and a fine of up to the greater of $750,000 or twice the gross gain or twice the gross loss. Lovinsky faces a maximum sentence of 20 years in prison and a fine of up to the greater of $250,000 or twice the gross gain or twice the gross loss.
Mr. Ferrer commended the investigative efforts of the FBI in connection with the investigation of this matter. Mr. Ferrer would also like to recognize the assistance provided by the Fort Lauderdale Police Department, the Federal Trade Commission and the Broward Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
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.
Orlando Man Sentenced to More Than 6 Years in Federal Prison for Receipt and Possession of Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Charlene E. Honeywell today sentenced Daniel Acevedo-Mayen (28) to 6 years and 3 months in federal prison for receipt and possession of child pornography. He was also sentenced to serve a 5-year term of supervision, following his incarceration, and ordered to register as a sex offender.
Acevedo-Mayen pleaded guilty on September 10, 2013.
On May 7, 2013, Homeland Security Investigations (HSI) special agents, along with agents from the Florida Department of Law Enforcement executed a federal search warrant at Acevedo-Mayen’s residence. A forensic review of Acevedo-Mayen’s computer and thumb drive revealed that he used a peer-to-peer program to download over 60 videos of children, as young as three years-old, involved in sexually explicit conduct with adults.
“Child pornography, when released onto the Internet, lives on forever. It haunts the children depicted in it, who live daily with the knowledge that countless strangers use an image of their worst experiences for their own gratification," said Shane Folden, deputy special agent in charge of HSI Tampa, which oversees the agency’s Orlando office that conducted this investigation. "Working together with our law enforcement partners at the state and local level, we are able to put more of these predators behind bars."
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
It is another 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.
Ocala Man Pleads Guilty to Illegal Possession of Six MachinegunsRead the Press Release
Ocala, Florida – Acting United States Attorney A. Lee Bentley, III, announces that Charles Robert Lester (49, Ocala) pleaded guilty late yesterday to unlawful possession of six machineguns. He faces a maximum penalty of ten years in federal prison. A sentencing date has not yet been set.
Lester was indicted on July 31, 2013.
According to the plea agreement, on June 24, 2013, deputies from the Marion County Sheriff’s Office executed a search warrant at Lester’s Ocala residence, after learning that he might be in possession of illegal firearms. During the search, deputies recovered five rifles from Lester’s private office that had been illegally modified, by Lester, to fire as fully automatic machineguns. Deputies also discovered two firearm silencers, drug paraphernalia, numerous other firearms, assorted ammunition, and a video showing Lester firing the illegal machineguns. When interviewed, Lester falsely told deputies that he had a federal permit to build the machineguns. Incident to his arrest, a search of Lester himself revealed that he had another fully-automatic handgun and a stolen pistol on his person.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Florida Department of Law Enforcement (FDLE), and the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
This collaboration is also a part of ATF’s Frontline strategy - an effective method in reducing violent crime and improving the quality of life in communities.
November Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 22 indictments charging 24 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Marlon Adid-Meza , age 32, of Omaha, Nebraska, is charged with illegal reentry into the United States on or about October 11, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Michelle Adkins, age 42, of Plattsmouth, Nebraska, is charged in a two-count indictment. Count I of the Indictment charges Adkins with embezzling funds from the Plattsmouth Post Office on or about April 4, 2013 through on or about May 31, 2013, in an amount in excess of $1000.00. The maximum possible penalty if convicted is imprisonment of 10 years, a fine of $250,000, 3 years of supervised release and a $100 special assessment. Count II of the Indictment charges the defendant with making a false report relating to funds received at the post office during the same time period. The maximum possible penalty if convicted is imprisonment of 10 years, a fine of $250,000, 3 years of supervised release and a $100 special assessment.
* Pablo Alvaro-Silos, age 37, of South Sioux City, Nebraska, is charged with illegal reentry into the United States on or about July 13, 2013, following deportation as an aggravated felon. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Gilberto Antonio Baltazar, age 42, of Omaha, is charged in a four-count Indictment. Count I of the Indictment charges the defendant with misuse of a Social Security Number on or about January 9, 2013. The maximum possible penalty for this count is imprisonment of 5 years, a fine of $250,000, 3 years supervised release, and a special assessment of $100. Count II of the Indictment alleges on or about January 9, 2013, Baltazar made a false statement claiming to be a United States citizen with the intent to receive Federal and State benefits or to otherwise obtain employment in the United States. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count III of the Indictment alleges that on or about January 9, 2013, Baltazar misused a Social Security Card and a State of Missouri Identification Card knowing that said documents were not issued lawfully for his use. The maximum possible penalty for this count is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Count IV of the Indictment charges the defendant with illegal reentry into the United States on or about October 17, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Christopher D. Brackett, age 36, of Bellevue, Nebraska, is charged with transportation of child pornography from on or about June 2013 through August 2013. If convicted, the maximum possible penalty is imprisonment of not less than 5 years nor more than 40 years, a fine of $250,000, 5 years up to life supervised release, and a $100 special assessment.
* Juan Briseno-Hernandez, age 37, of Omaha, is charged with illegal reentry into the United States on or about October 28, following deportation as an convicted felon. The maximum possible penalty if convicted is imprisonment of 10 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Henry Ray Denney, age 37, of Niobrara, Nebraska, is charged with domestic assault by a habitual offender on or about August 26, 2013. The assault occurred on the Santee Sioux Indian Reservation. The maximum possible penalty if convicted is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Cossi Deugnon, age 32, a citizen of Benin, a country in West Africa, and Shantoria Valentine, a citizen of the United States, age 22, both of Omaha, are charged in a two-count Indictment. Both defendants are charged in Count I with conspiracy to defraud the United States government by giving false information to the United States Citizenship and Immigration Services regarding their marriage. Count II of the Indictment charges Deugnon and Valentine with marriage fraud on or about February 1, 2011. The maximum possible penalty of each charge if convicted is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. .
* Fabian Jones, age 26, and Jermaine Hall, age 38, are charged in a two-count indictment. Count I alleges that beginning on or about October 8, 2013, and continuing to on or about October 23, 2013, the defendants conspired together and with others to distribute and possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. The maximum possible penalty if convicted is imprisonment of not less than 10 years and up to life, a $10 million fine, a 5 year term of supervised release, and a $100 special assessment. Count II alleges that on or about October 8, 2013 and continuing to on or about October 23, 2013, the defendants conspired together and with others to distribute and possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of cocaine. The maximum possible penalty if convicted is imprisonment of not less than 5 years and up to 40 years, a $5 million fine, a 4 year term of supervised release, and a $100 special assessment.
* Jose Lopez-Lara, age 45, address unknown, is charged with illegal reentry into the United States on or about October 30, 2013, following deportation as an aggravated felon. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Eduardo Manuel-Bautista, age 24, address unknown, is charged with illegal reentry into the United States on or about October 30, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Jorge Martinez-Noyola, aka Chino, age 39, address unknown, is charged with illegal reentry into the United States on or about August 31, 2013, following deportation as an aggravated felon. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Miguel Angel Medrano-Alvarado, age 30, of Bellevue, Nebraska, is charged with illegal reentry into the United States on or about October 25, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Alejandro Mendoza-Ailon, age 32, of South Sioux City, Iowa, is charged with illegal reentry into the United States on or about November 4, 2013, following deportation as an aggravated felon. The maximum possible penalty if convicted is imprisonment of 20 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Justen C. Meneses, age 39, of Plattsmouth, Nebraska, is charged with theft of United States mail by a United States Postal Service employee on or about August 28, 2013. The maximum possible penalty if convicted is imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.
* Ralph Moreno, age 53, of Gering, Nebraska, is charged in a two-count Indictment. Count I of the indictment charges Moreno with receipt and distribution of child pornography from on and before October 3, 2013. If convicted, the maximum possible penalty is imprisonment of not less than 5 years nor more than 20 years, a fine of $250,000, 5 years up to life supervised release, and a $100 special assessment. Moreno is charged in Count II of the indictment with possession of child pornography from on or about November 12, 2013. The maximum possible penalty for this count if convicted is imprisonment of 10 years, a $250,000 fine, 5 years up to life supervised release, and a $100 special assessment.
* Enrique Ochoa-Beltran, age 33, of Omaha, is charged with illegal reentry into the United States on or about November 14, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Jorge Olvera-Trejo, age 32, of Omaha, Nebraska, is charged with illegal reentry into the United States on or about October 30, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Jose Ortiz-Herrera, age 30, of Omaha, is charged with illegal reentry into the United States on or about October 30, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Michael Quinlan, age 46, of Northglenn, Colorado, is charged with possession with intent to distribute a mixture or substance containing a detectable amount of marijuana on or about October 23, 2013. The maximum possible penalty if convicted is imprisonment of 20 years, a $1,000,00 fine, 3 years of supervised release, and a $100 special assessment.
* Julio Cesar Serrato-Tirado, age 26, of Bellevue, Nebraska, is charged with illegal reentry into the United States on or about October 17, 2013, after deportation or removal. The maximum possible penalty if convicted is imprisonment of 2 years, a $250,000 fine, 1 year of supervised release, and a $100 special assessment.
* Shane D. Sweeney, age 28, of Omaha, is charged with assaulting a Veterans Affairs police officer on or about October 27, 2013. The maximum possible penalty if convicted is imprisonment of 8 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment.Newark Man Pleads Guilty to 17 Armed Robberies, an Armed Carjacking, and A ShootingRead the Press Release
NEWARK, N.J. – A Newark, N.J. man today admitted committing 17 armed robberies of commercial establishments throughout Union, Essex, and Bergen counties, U.S. Attorney Paul J. Fishman announced.
Bobby Dawson, 30, pleaded guilty before U.S. District Judge William H. Walls to a three-count Information charging him with committing an armed carjacking, conspiring to commit Hobbs Act robberies and discharging a firearm during the commission of one of those robberies.
According to the documents filed in this case and statements made in court:
Dawson conspired with others to rob commercial establishments as follows:
Pao Da Terra
Newark
Dec. 29, 2012
Newark
Jan. 20, 2013
Newark Community Pharmacy
Newark
Jan. 24, 2013
Linden Stationary
Linden
Feb. 1, 2013
Delta Gas Station
Newark
Feb. 1, 2013
Shoppers Express
Belleville
Feb. 2, 2013
Krauszers
Kearny
Feb. 10, 2013
Krauszers
Bloomfield
Feb. 13, 2013
Pat’s Deli
Newark
Feb. 19, 2013
Smashburger
Paramus
March 16, 2013
Krauszers
Bloomfield
March 29, 2013
MS&K Confectionery
Maplewood
April 1, 2013
Belleville News and Food
Belleville
April 17, 2013
South Wood Discount Liquor
Linden
April 17, 2013
Krauszers
West Orange
April 24, 2013
Newark Community Pharmacy
Newark
May 1, 2013
Subway Restaurant
Verona
May 20, 2013
Dawson and his conspirators robbed each of these establishments at gunpoint, stealing cash, cigarettes, and other items. In 15 of the 17 robberies, Dawson and his conspirators used zip ties or duct tape to restrain their victims.
In the MS&K robbery on April 1, 2013, Dawson threatened the clerk of the store with a .380 caliber semi-automatic handgun. When the clerk resisted, Dawson fired his gun at the clerk, ordered the clerk to lie down and then stole $9,000 from the cash register.
In the robbery of Krauszers in West Orange on April 24, 2013, Dawson and his conspirator tied up three individuals in the store with zip-ties before stealing approximately $600 and several cartons of cigarettes. Dawson injured a store employee by hitting the victim in the head with his firearm.
The armed carjacking to which Dawson pleaded guilty is punishable by a maximum potential penalty of 15 years in prison. The Hobbs Act conspiracy to which Dawson pleaded guilty is punishable by a maximum potential penalty of 20 years in prison. The charge of discharging a firearm during a crime of violence is punishable by a maximum penalty of life in prison and a mandatory minimum sentence of 10 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. Sentencing is scheduled for March 11, 2014.
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 guilty plea. 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.
13-449
Defense Counsel: Candace Hom Esq., Assistant Federal Public Defender, Newark
Dawson Information
Miami Man Sentenced to More Than Three Years in Prison for Healthcare Fraud SchemeRead the Press Release
Tampa, FL – U.S. District Judge Mary S. Scriven today sentenced Juan Gonzalez-Castro to 3 years and 1 month in federal prison for healthcare fraud. The court also ordered Gonzalez-Castro to forfeit $2,543,951.28, which are traceable to proceeds of the offense. Gonzalez-Castro pleaded guilty on August 7, 2013.
According to court documents, from at least in or around 2006, until at least in or around February 2010, Gonzalez-Castro knowingly and willfully conspired with others, including Dixan Barcelo-Castro, Jose Fresco, and Alfredo Barcelo-Rodriguez, to defraud Medicare Part C health plans. The co-conspirators, including Gonzalez-Castro, operated four clinics, all at the same location (2137 W. Martin Luther King Jr. Blvd., Tampa, Florida). Each clinic supposedly performed the same procedure (Endovenous Vein Ablation) on its patients. None of the conspirators are licensed medical professionals or has any experience operating a legitimate medical clinic.
The four clinics involved in the scheme were: (a) Palmetto General Health Care, Inc. (Palmetto); (b) United Healthcare Center, Inc. (United); (c) New Imaging Center, Inc. (New Imaging); and (d) Lord Physical Rehabilitation Center, Inc. (Lord Rehab). Gonzalez-Castro helped establish and operate the clinics and was listed as the President and Registered Agent of United and the Vice President and Secretary of New Imaging corporations.
All of the clinics operated at the same physical address, at the same time, and billed Medicare Part C HMOs for the same procedures on the same patients. They then billed Medicare Part C plans for those procedures. In reality, the procedure for which they billed, primarily Endovenous Vein Ablation, was never performed at these clinics. For example, various Part C plans would be billed for up to ten instances of Endovenous Vein Ablation in a single year for a single patient, when performing that number of procedures on a single person would be medically impossible. When interviewed, none of the "medical professionals" who worked at the clinics or any of their supposed beneficiaries provided or received medical treatment at the clinics or had any procedures that, when described, resembled vein ablation. The co-conspirators submitted or caused to be submitted multiple fraudulent claims for the same or similar patients using different entity names, simply by whiting out the letterhead and replacing it with another clinic's name.
The patient beneficiaries were complicit in the scheme and allowed themselves to be enrolled in several Medicare Part C plans to maximize the fraudulent billing. Once one plan was billed for a single patient to have this sham procedure, the beneficiary was re-enrolled in another Part C plan to repeat the fraudulent billing.
The co-conspirators used the four clinics to bill eight different Medicare Part C plans, which are healthcare benefit programs as defined in 18 U.S.C. 1347. The total intended loss identified to date is approximately $4,872,239, and the actual loss is approximately $2,543,951.28.
Dixan and Barcelo-Rodriguez remain fugitives. Fresco has pleaded guilty to his role in the scheme is scheduled for sentencing in December 2013.This case was investigated by HHS-OIG. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
Mason City Bank Teller to Federal Prison for EmbezzlementRead the Press Release
A woman who embezzled nearly $70,000 from a Mason City bank was sentenced today to more than one year in federal prison.
Margaret Marie (Peggy) Sheese, age 54, from Mason City, Iowa, received the prison term after an August 16, 2013 guilty plea to one count of embezzlement by a bank employee.
In a plea agreement, Sheese admitted that, between about October 2011 and January 2013, she stole $69,200 from Northwood State Bank in Mason City. At the time, Sheese was a teller at the bank. Sheese admitted making twenty-nine secret withdrawals from accounts belonging to a particular bank customer. Sheese altered the bank’s records to falsely show that the bank customer’s mailing address had changed to a Post Office Box under Sheese’s control. By changing the mailing address, Sheese caused the bank to send the customer’s account statements to Sheese rather than to the customer. Sheese also admitted that, on January 15, 2013, she stole $2,000 in cash from the bank.
Sheese was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Sheese was sentenced to fourteen months’ imprisonment to be followed by five years of supervised release. A special assessment of $100 was imposed, and she was ordered to make $71,680 in restitution to the victim bank and its fraud insurer. There is no parole in the federal system.
Sheese was released on the bond previously set and is to surrender to the United States Marshal on December 16, 2013.
The case was prosecuted by Assistant United States Attorney Peter Deegan and was investigated by the Mason City Police Department and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-3026 LRR.
Martin Man Pleads Guilty to Benefits FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that Walter York, age 34, of Martin, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy on November 14, 2013, and pled guilty to Benefits Fraud. The maximum penalty upon conviction is 1 year imprisonment and a $100,000 fine.
York was indicted for fraudulently making a purchase at Sam’s Club in Rapid City on July 10, 2011, when he used another person’s Electronic Benefits Transfer card.
The investigation was conducted by the Federal Bureau of Investigation and the South Dakota Department of Social Services. The case is being prosecuted by Assistant U.S. Attorney Wayne Venhuizen.
A presentence investigation was ordered and a sentencing date was set for February 3, 2014. The defendant was released on bond pending sentencing.
Manhattan U.S. Attorney Charges 14 Defendants in Connection with $8 Million Bank Fraud SchemeRead the Press Release
James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), today announced charges against 14 defendants for engaging in a bank fraud scheme involving deposits of thousands of counterfeit checks and withdrawals of at least $8 million in fraudulent proceeds. Seven defendants were arrested this morning and are expected to be presented in Manhattan federal court before U.S. Magistrate Judge Kevin Nathaniel Fox this afternoon. Two additional defendants were arrested – one in Buffalo, New York, and one in Lawrenceville, Georgia. Defendants HAMID KHAN, AKTHER RAHMAN, ABDUR RAZZAK, KHAIRUL ISLAM and MD REZA are still at large.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, for three years the 14 defendants charged in this multimillion-dollar check-kiting scheme attempted to fly under the radar and conceal their illicit activity through false identification documents, counterfeit checks, and sham companies. But law enforcement uncovered their alleged bank fraud, and now they will be made to answer for their actions.”
ICE HSI Special Agent-in-Charge James T. Hayes, Jr. said: “The defendants arrested today are alleged to have perpetrated a scheme involving the theft of at least $8,000,000 from 15 financial institutions. HSI New York’s El Dorado Task Force, the largest financial investigation task force in the world, partners with prosecutors and law enforcement agencies every day to detect and dismantle transnational criminal organizations working to steal from financial institutions and disrupt America’s economic system.”
The following allegations are based on the Indictment unsealed today in Manhattan federal court:
From approximately June 2009 through November 2012, the defendants and their co-conspirators allegedly engaged in a bank fraud scheme in which they created counterfeit checks, deposited those counterfeit checks into bank accounts they had opened in the names of sham companies in order to fraudulently inflate the balances in those accounts, and then withdrew funds from those bank accounts before the financial institutions were able to determine the fraudulent nature of the checks. The scheme entailed the deposit of thousands of counterfeit checks into bank accounts at approximately 15 different banks, resulting in aggregate losses to those banks of at least $8 million.
As part of the scheme, the defendants incorporated sham companies and then opened bank accounts in the names of those sham companies. The individuals opening the accounts (the “accountholders”) often used false identities, including names and social security numbers, and presented false identification documents, including fake United States visas. The accountholders were generally instructed to make small legitimate deposits at first so that the banks would make funds immediately available upon future fraudulent deposits.
The defendants obtained copies of legitimate checks and then used the payor account information that appeared on those checks to create counterfeit checks made payable to the sham companies they had incorporated as part of the scheme. The accountholders deposited the counterfeit checks into the sham company bank accounts at various banks. The accountholders often made deposits at numerous branches of the same bank on the same day. These deposits often were made on a Thursday or Friday so that the defendants could withdraw the illegal proceeds over the weekend when the banks were closed and were less likely to determine that the checks were counterfeit.
Once the defendants confirmed that funds from the counterfeit checks were available for withdrawal, the accountholders were directed to withdraw the funds from the counterfeit checks, typically over the weekend and often in amounts just under $10,000. The defendants often withdrew the funds from global cash access machines at casinos in Atlantic City, New Jersey, which did not have daily withdrawal limits. The accountholders often used false identification documents, including fake United States visas, when making the withdrawals.
Each of the defendants was charged with one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison. Certain of the defendants were also charged with one count of conspiracy to commit fraud in connection with identification documents, which carries a maximum sentence of 15 years in prison. A chart listing the age, place of residence, and charges for each of the 14 charged defendants is attached.
In addition to the defendants charged in the Indictment unsealed today, six other defendants have been charged and have pled guilty in connection with the scheme.
Manhattan U.S. Attorney Bharara praised the investigative work of ICE HSI. He also thanked the Queens County District Attorney’s office, the New Jersey State Police, the New York City Police Department, the New York State Police, the United States Secret Service, and the New York City Taxi and Limousine Commission for their assistance in the matter.
The prosecution of this case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorneys Lisa Korologos and Elisha Kobre, and Special Assistant United States Attorney Jason Wong, are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
U.S. v. Zaman Mahabub, et al. Indictment 13 cr 908.
Man Charged with Stealing $57,000 in Social Security PaymentsRead the Press Release
A grand jury returned a one-count indictment charging Fred M. Mallard, 69, with one count of Theft of Government Property, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Mallard stole and converted to his own use, approximately $57,252 in Social Security payments made to his mother after her death.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Lauren Bell, following investigation by agents of the Social Security Administration Office of Inspector General.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
MS-13 Gang Leader Sentenced to Life in PrisonRead the Press Release
Earlier today, Carlos Ortega, also known as “Silencio,” a former leader of the Sitios Locos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13 street gang, was sentenced to life in prison at the federal courthouse in Central Islip, New York. Ortega was convicted, on March 21, 2013, following a six-week trial, on all counts of the trial indictment, including racketeering, racketeering conspiracy, murder, assault with dangerous weapons, and related firearms and conspiracy offenses.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Thomas V. Dale, Commissioner of the Nassau County Police Department.
“Ortega’s journey to federal prison began in El Salvador when he joined MS-13 and continued when he illegally entered the US and chose to maintain his allegiance to the gang. Ortega committed heinous acts of violence in the name of MS-13, cutting a swath of murder from Brentwood to Far Rockaway, all within the span of a few weeks,” stated U.S. Attorney Lynch. “From a suspected rival gang member, to an MS-13 gang member who was not violent enough, there was no room for mercy in the gang’s code of enforcing respect through murder. Today’s life sentence is a fitting end to Ortega’s reign of terror. He will now have the rest of his life to contemplate the just results of his allegiance to the killing machine known as MS-13.” Ms. Lynch extended her grateful appreciation to each of the law enforcement agencies for their assistance in this case.
FBI Assistant Director-in-Charge Venizelos stated, “The victims were robbed of their futures by the defendant’s senseless killing spree. His cowardly acts have earned him a life sentence. The defendant’s imprisonment should be a reminder to all those who participate in gang activity that violence and victimization of the public will not be tolerated and will be met with the full force of the FBI. The FBI’s Long Island Gang Task Force is committed to ridding the streets of these violent criminals. Our resolve is strong, and we will not stop until every last gang member is brought to justice.”
At trial, the government proved that Ortega, along with his fellow MS-13 gang members, committed two murders and one attempted murder in February and March of 2010. First, Ortega was convicted in connection with the murder of 21-year-old David Sandler and the attempted murder of 20-year-old Aaron Galan in Brentwood, New York, on February 17, 2010. Ortega and his fellow MS-13 gang members lured Sandler, whom the MS-13 believed was a member of the rival Latin Kings street gang, to Timberline Drive in Brentwood under the pretext of buying marijuana from him. Once Sandler arrived, Ortega shot him in the face at close range, killing him. Ortega also shot Sandler’s close friend, Galan, who was with Sandler at the time, in the face. Miraculously, Galan survived.
At trial, Ortega was also convicted of the March 17, 2010 murder of Mario Alberto Canton Quijada in Far Rockaway, New York. Quijada, who was a fellow member of the MS-13, was killed because of his reluctance to “put in work,” or attack rival gang members on behalf of the MS-13. On March 17, 2010, Quijada was lured to the beach in Far Rockaway under the guise of attacking rival gang members. Once alone on the beach, the MS-13 gang members tried to shoot Quijada in the head with a semi-automatic handgun, which had been used in several other murders committed by the MS-13, including the murders of a young woman and her two- year-old son. However, the gun jammed. Undeterred, Ortega and the other MS-13 members set upon Quijada with knifes and machetes and hacked him to death.
Ortega’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international street gang comprised primarily of immigrants from El Salvador, Honduras, and Guatemala. With numerous branches, or “cliques,” the MS-13 is the largest street gang on Long Island. Since 2002, more than 200 MS-13 members, including more than two dozen clique leaders, have been convicted on federal felony charges in the Eastern District of New York. More than 100 of those MS-13 members have been convicted on federal racketeering charges. Since 2010 alone, this Office has convicted more than 30 members of the MS-13 on charges relating to their participation in one or more murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, Rockville Centre Police Department, and Suffolk County Police Department.
The life sentence was imposed by United States District Judge Joseph F. Bianco.
The government’s case was prosecuted by Assistant United States Attorneys John J. Durham, Raymond A. Tierney, and Carrie N. Capwell.
The Defendant:
CARLOS ORTEGA, also known as “Silencio” and “Silent”
Brentwood, New York
Age: 24Longmont Man Arrested for Investment SchemeRead the Press Release
DENVER – Gary Snisky, age 47, of Longmont, Colorado, was arrested without incident yesterday on charges of mail fraud and money laundering, federal authorities announced. Snisky was indicted by federal grand jury in Denver on November 19, 2013, which remained under seal until his arrest and first court appearance. Snisky was arrested at Denver International Airport. He made his initial appearance this afternoon before U.S. Magistrate Judge Michael Hegarty, where he was advised of his rights and the charges pending against him. Snisky’s co-conspirator, Richard Greeott, plead guilty on October 7, 2013 to mail fraud and money laundering charges. As part of Greeott’s plea agreement, he agreed that his sentence will include an order of restitution in an amount up to $4,501,887.
According to the indictment and Greeott’s plea agreement, beginning in 2010 continuing through January 2013, Sniksy devised a scheme to defraud investors by false and fraudulent promises. Snisky operated a Colorado company called Colony Capital, LLC (“Colony Capital”), which purported to be a private equity firm offering investment opportunities in bonds, futures trading, and other offerings. Sometime in 2011, Snisky shut down Colony Capital and formed a company in Longmont, Colorado called Arete, LLC (“Arete”), which also purported to be a private equity firm offering similar investment opportunities.
Starting in July 2011, Snisky offered a 10-year investment model based on the purchase of Ginnie Mae bonds, which promised the investor a 10% upfront bonus and an annual return of 7%. Prior to April of 2012, Snisky began offering a 5-year investment model for the Ginnie Mae bond program, which promised a 6% annual return on the invested money. Between approximately July 2011 and January 2013, Snisky received more than $4,000,000 in investor money that was supposed to be invested in the Ginnie Mae bond program. Snisky did not purchase any Ginnie Mae bonds.
Additionally, in mid-2010, Snisky asked Richard Greeott, who was doing information technology work for Colony Capital, to develop an algorithm for a fully-automated trading system for trading in the futures market. By the end of 2012, Snisky knew that Greeott was still developing the Algorithm and was merely testing it by trading in a simulated environment and by making small trades in the futures market. At no time did Snisky, Greeott, or anyone else at Colony Capital or Arete make any real profit using the Algorithm. However, Snisky falsely led investors, potential investors, and financial advisors to believe that the Algorithm was being used by Colony Capital, and Arete, to profitably trade in the futures market. Based on these false statements, Snisky received more than $300,000 from investors to be invested in the futures trading program. Snisky did not invest this money as promised. Snisky also falsely boasted about Colony Capital’s and Arete’s success in the futures market in order to falsely bolster the companies’ overall appearance of success.
In connection with seizure warrants that were executed in this case, the government is seeking to forfeit over $1.9 million in currency seized from Gary Snisky and related LLC accounts and a commercial real property valued at approximately $400,000.00.
“The U.S. Attorney’s Office and federal law enforcement continue to fight investment fraud wherever we find it,” said U.S. Attorney John Walsh. “As this case shows, unscrupulous investment fraud schemes are all too common, and require law enforcement’s diligent, determined investigation and prosecution.”“Investment fraud schemes often involve individuals who appear extremely credible and trust worthy. When investigated by our special agents who specialize in following the money, these individuals are exposed as greedy and uncompassionate and have devastated the financial well-being of investors whose trust they betrayed,” said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office.
“The FBI will continue to work with our law enforcement partners to protect innocent investors and our economy from those who engage in these types of fraudulent schemes,” said FBI Denver Special Agent in Charge Thomas P. Ravenelle.
“The U.S. Postal Inspection Service will continue to vigorously pursue those who utilize the U.S. Mail to perpetrate fraud schemes and take consumers' hard earned money,” said Adam P. Behnen, Inspector in Charge of the U.S. Postal Inspection Service Denver Division. “We are appreciative of our quality law enforcement relationships with IRS Criminal Investigation and the Federal Bureau of Investigation for their hard work in this case.”
Snisky was charged with; 13 counts of wire fraud, which carries a penalty of not more than 20 years in federal prison, and a fine of up to $250,000 per count; five counts of money laundering, which carries a penalty of not more than 10 years in federal prison, and a fine of up to $500,000, per count. The indictment also includes an asset forfeiture allegation.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the United States Postal Inspection Service.
This case is being prosecuted by Assistant U.S. Attorney Pegeen D. Rhyne, and Assistant U.S. Attorney Tonya Andrews is handling the forfeiture proceedings.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
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Leader Sentenced to over 23 Years in Prison for Scheme to Steal Nearly $1.4 Million from Housing Authority of Baltimore City AccountRead the Press Release
Heavy Sentence for Defendant Who Stole From Housing Authority’s Bank Account
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Daren Kareem Gadsden, aka “D,” age 36, of Upper Marlboro, Maryland, to 286 months in prison, followed by five years of supervised release for a conspiracy to steal almost $1.4 million from a Housing Authority of Baltimore City bank account. Judge Quarles also ordered Gadsden to forfeit $1,399,700.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief James W. Johnson of the Baltimore County Police Department.
“This heavy sentence punishes Daren Gadsden for a brazen scheme to steal $1.4 million directly from the Baltimore City Housing Authority’s bank account,” said U.S. Attorney Rod J. Rosenstein. “Mr. Gadsden identified a vulnerability in the Housing Authority’s payment system and exploited it to steal taxpayer money intended to provide housing for low-income citizens.”
According to information presented at his six day trial, in 2009, Gadsden owned a property in Baltimore that was rented to a low income individual, whose rental payments were paid by the Housing Authority of Baltimore City, from its account directly to Gadsden’s bank account. Witnesses testified that in late 2009 and 2010, Gadsden made a series of inquiries to another bank where he had an account about how to use his computer to make electronic transfers to and from his account at that bank. In early 2010, the Housing Authority lost a few thousand dollars when a series of unauthorized electronic transfers debited funds out of the Housing Authority’s account and into Gadsden’s bank account. After being confronted by Housing Authority officials, Gadsden denied any wrongdoing, but paid the Housing Authority $1,400 to cover some of its losses.
Trial evidence showed that, at this point, Gadsden already had embarked on the second stage of his scheme, stealing during the spring of 2010 a marginally larger amount of Housing Authority funds – less than $8,000 – this time not depositing into his own account, but rather into an account in the name of a bogus entity Gadsden had created using another individual’s stolen identifiers. Gadsden effected the unauthorized electronic debits out of the Housing Authority’s bank account by using fake authorization forms and other fraudulent documents.
The evidence showed that from early 2010 until at least September 17, 2010, Gadsden and several co-defendants then conspired to execute a larger scheme to defraud the Housing Authority. Specifically, Gadsden contacted Tyeast Brown to plan the fraud. Brown, in turn, contacted William Alvin Darden and Keith Eugene Daughtry, securing from Daughtry his social security card and birth certificate, which she provided to Darden. On May 19, 2010, Darden obtained a Maryland driver’s license with his photograph, but in Daughtry’s name, using Daughtry’s social security card and birth certificate as proof of identity. Darden then used the fraudulent license to open a bank account in the name of Keith Daughtry Contracting LLC. Gadsden had registered the entity with the state of Maryland, only a few days before, under a different, misspelled name. Darden also provided a mailing address for the company that was actually a mailbox rented by the conspirators at a commercial mailing store.According to witness testimony, beginning in July, 2010, Gadsden and his co-conspirators electronically transferred nearly $1.4 million in funds from the Housing Authority’s bank account and into the Keith Daughtry Contracting LLC account. The conspirators then drained the stolen Housing Authority funds from the Keith Daughtry Contracting account by electronic transfers into accounts at other banks, in-person cash withdrawals and from automated teller machines. In addition, the conspirators electronically transferred funds from the Keith Daughtry Contracting account onto debit cards in the names of other individuals. For example, Gadsden opened a debit account in the name of another individual, using that person’s identity information without their knowledge or permission.
The evidence showed that Gadsden also tampered with evidence, deleting the contents of at least two email accounts after he was contacted by an FBI Special Agent. The accounts were provided as the points of contact for certain debit cards Gadsden opened using stolen identity information.
Judge Quarles also sentenced William Alvin Darden, age 46, of Washington, D.C. today to 30 months in prison, followed by three years of supervised release. Darden, who previously pleaded guilty to his role in the scheme, was also ordered to pay restitution of $1,399,700.
Tyeast Brown, aka “Peaches,” age 42, of Suitland, Maryland and Keith Eugene Daughtry, age 52, of Washington, D.C. also pleaded guilty and were sentenced to 36 months and 41 months in prison, respectively, and each was ordered to pay restitution of $1,399,700. Another co-conspirator, Marvin Moss, also pled guilty to his role in the scheme and was sentenced to 15 months in prison.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 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 more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.United States Attorney Rod J. Rosenstein thanked the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Sujit Raman, who prosecuted the case.
Last of Five "Nifty Fifty's" Owners Sentenced for Tax Evasion SchemeRead the Press Release
PHILADELPHIA – Elena Ruiz, 48, of Drexel Hill, PA, was sentenced today to 12 months and a day in prison and Brian Welsh, 50, of Springfield, PA, was sentenced to 20 months in prison for their roles in the tax evasion scheme carried out by the owners of the ANifty Fifty=s@ restaurant chain. Joseph Donnelly, 50, of Springfield, PA, was sentenced yesterday to 28 months in prison for his role.
Restaurant owners Robert Mattei and Leo McGlynn, along with the above defendants, constructed a long-running scheme to avoid paying millions of dollars in personal and employment taxes as related to their restaurant chain. They cheated the Internal Revenue Service by failing to properly account for more than $15 million in gross receipts. They also filed income tax returns claiming they were due refunds based on the erroneous reporting of their incomes.
Mattei, was sentenced Monday to 15 months in prison. McGlynn was sentenced Tuesday to 36 months in prison. All five defendants pleaded guilty to the charges. The restaurant owners paid employees a portion of their wages with unreported cash in order to evade payroll taxes; paid suppliers with unreported cash; and had false tax returns prepared that under-reported income and falsely inflated expenses and deductions. Just between the years 2006 and 2010, the defendants deliberately failed to properly account for $15.6 million in gross receipts, thereby evading $2.2 million in federal employment and personal taxes. In the course of their conspiracy, Mattei, McGlynn, Donnelly, and Welsh committed bank fraud by submitting to the bank bogus income tax returns in order to secure several business loans.In addition to the prison term, U.S. District Court Judge Mary McLaughlin ordered the defendants to pay restitution to the IRS. To date, the IRS has received $4,336,871 in tax payments and an additional $205,300 in forfeiture payments.
This case was investigated by the Internal Revenue Service Criminal Investigations and the FBI. It was prosecuted by Assistant United States Attorneys Nancy E. Potts and Paul G. Shapiro.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525La Plant Couple Charged with Involuntary Manslaughter, Child Abuse and False StatementRead the Press Release
United States Attorney Brendan V. Johnson announced that a couple from La Plant, South Dakota, has been indicted by a federal grand jury.
Rochelle Breckbill, a/k/a Rochelle LeBeau, age 25, and Henry Chase Alone, age 30, were indicted on November 14, 2013, for Involuntary Manslaughter, Child Abuse, and False Statement. They appeared before U.S. Magistrate Judge Mark A. Moreno on November 19, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction for each person is 15 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, an additional 2 years of supervised release upon revocation, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and Breckbill and Chase Alone are presumed innocent until and unless proven guilty.
The three-count Indictment alleges that between September 29, 2013 and October 1, 2013, Breckbill and Chase Alone unlawfully killed a human being, without malice. The Indictment also alleges that they abused, exposed, tortured, tormented, and cruelly punished a child who had not attained the age of 7 years. Following those acts, it is alleged that Breckbill and Chase Alone lied to the Federal Bureau of Investigation.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jay P. Miller is prosecuting the case.
Breckbill and Chase Alone were released on bond pending trial which has not been set.
Kentwood Pharmacy Owner and Eight Additional Employees Indicted for Conspiracy to Misbrand DrugsRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr. announced today that a federal grand jury charged Kim Mulder, the owner and CEO of Kentwood Pharmacy, with a Superseding Indictment charging conspiracy to misbrand drugs and conspiracy to create false prescription records. Mulder also faces a charge of structuring cash transactions in order to avoid bank reporting regulations which was part of an earlier indictment.
The grand jury also charged an additional eight employees, who held various positions in the company, with conspiracy to misbrand drugs. These employees include vice-president of sales Richard Clarke; chief Pharmacist Lawrence Harden; pharmacy floor manager Jessica Veldkamp; billing manager Elizabeth Morgan; staff pharmacist Erin Rivard; sales representative Michelle Shedd; drug packer Heather Harden; and distribution manager Gary Franks. The Superseding Indictment alleges that Mulder and the named employees arranged for unused drugs to be picked up from adult foster care and nursing homes and that these returned drugs were later re-dispensed by Kentwood Pharmacy. The charge asserts that the defendants misbranded the drugs when they returned the drugs to Kentwood Pharmacy by placing the returned drugs into stock bottles that bore incorrect lot numbers and expiration dates and into amber pill vials that bore no lot numbers or expiration dates. The conspiracy count charges that a number of the defendants took actions to conceal this conduct from employees and the homes by undertaking the sorting of returned drug at unlicensed off-site locations, including a strip mall office and the basement of the chief pharmacist’s home.
A second conspiracy charge alleges that Mulder, chief pharmacist Lawrence Harden, and billing manager Elizabeth Morgan also created false prescription records. All of the charges in the Superseding Indictment are felonies punishable by up to five years imprisonment and fines of $250,000.00.
Earlier this month, U.S. District Judge Janet T. Neff sentenced three semi-retired pharmacists to fines ranging from $15,000 to $30,000 on charges of felony misbranding of drugs related to their part-time employment at Kentwood Pharmacy.
Individual patients may have received drugs from Kentwood Pharmacy as early as 2004, and continuing through November 2010, which were misbranded or adulterated. Examples of such misbranded or adulterated drugs include mislabeled drugs, discolored drugs, or expired drugs. Persons who believe they may have received or paid for drugs supplied by Kentwood Pharmacy between 2004 and November 2010, which were misbranded or adulterated are asked to contact the U.S. Attorney’s Office for the Western District of Michigan.
Potential Victims may contact the Western District of Michigan U.S. Attorney’s Office by visiting the office’s website and accessing a form related to this case at: http://www.justice.gov/usao/miw/programs/victimwitness.html Alternatively, potential victims may call the office’s Victim Witness Unit at (616) 808-2034 and provide the information over the phone.
The investigation of this matter involves the FDA, FBI, DEA, HSS-OIG, IRS, and the Michigan State Police. Assistant U.S. Attorney Ray Beckering is the prosecutor.
Charges in an indictment are only allegations and are not evidence of guilt. A defendant is presumed innocent unless and until proven guilty, and the government has the burden of proving guilt beyond a reasonable doubt..
END
Jury Finds Bethany Man Guilty of Securities Fraud and Money Laundering for Operating A Ponzi SchemeRead the Press Release
Oklahoma City, Oklahoma - Today, a jury found BRIAN WILLIAM McKYE, 49, from Bethany, Oklahoma, guilty of seven counts of securities fraud and one count of conspiracy to commit money laundering for operating a Ponzi scheme, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Evidence from trial showed that from 2006 through 2009, McKye, did business as Global West Funding Ltd., Global West Financial LLC, Global West Financial LLC, Sure Lock Financial LLC, Sure Lock Loans LLC, and The Wave-Goldmade Ltd. McKye used these businesses to market investment contracts whereby investors were guaranteed a monthly rate of return from 6.5% to 20% for 6 to 60 months. Investors were told they had “100% total control” of their money and that the investments were secured by risk free real estate notes. However, McKye was not a registered investment advisor or broker-dealer in the State of Oklahoma and he used the money he received from investors to pay his own personal and business expenses and some limited returns to investors to keep the scheme on-going. Through this Ponzi scheme, McKye defrauded 83 victim-investors out of over $4.5 million. McKye’s companies were shut down by the Oklahoma Department of Securities in the spring of 2009.
McKye’s original conviction on November 17, 2011, was overturned on appeal. Following a four-day retrial, a jury convicted McKye again today after deliberating for less than 90 minutes. McKye represented himself at trial.
At sentencing, McKye faces up to 20 years in prison and an order to pay restitution to his victims in excess of $4.5 million.
This case was investigated by the Internal Revenue Service Criminal Investigation and was prosecuted by Assistant United States Attorney Susan Dickerson Cox.
Hungarian Woman Sentenced to One Year in PrisonFor Her Role in International Internet-Based Fraud Scheme-Defendant Was Part of A Ring That Tricked People into Thinking They Were Buying Cars, Trucks, and Motor Homes -Read the Press Release
WASHINGTON – Beata Edina Wagnerne Abonyi, 55, of Budapest, Hungary, has been sentenced to a year in prison on a federal charge stemming from her participation in an international Internet-based fraud scheme that obtained more than $350,000 from people who thought they were buying cars, trucks, and motor homes.
The sentence was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Niall Meehan, Special Agent in Charge of the Washington Field Office of the U.S. State Department’s Diplomatic Security Service.
Abonyi pled guilty on Aug. 28, 2013 to one count of conspiracy to commit bank fraud, wire fraud and false use of a passport. She was sentenced on Nov. 19, 2013, by the Honorable Reggie B. Walton. The judge also ordered Abonyi to pay $355,107 in restitution and ordered her to forfeit $1,245 in U.S. currency and a $395,485 money judgment, which represents the proceeds she obtained through the scheme. Upon completion of her prison term, Abonyi will be placed on three years of supervised release.
According to a statement of offense signed by the defendant, Abonyi and others conspired to carry out the scheme from on or about late February 2013 through the beginning of May 2013. Members of the conspiracy falsely advertised and purported to sell motor vehicles, trucks, and motor homes on websites, targeting buyers located mainly in the United States. With assistance from her co-conspirators, Abonyi used false passports and false driver’s licenses to open bank accounts at four different financial institutions in Virginia. During the course of the scheme, Abonyi came to understand that buyers were being induced to wire money and funds into these accounts for the intended purpose of purchasing the vehicles. She fraudulently withdrew funds from the accounts before the buyers, financial institutions, and law enforcement detected the scheme. Abonyi then wired the falsely obtained funds to co-conspirators here in the United States and overseas. Abonyi admitted that the bank accounts she fraudulently opened received over $350,000 from victims.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Special Agent in Charge Meehan praised those who investigated the case from the FBI’s Washington Field Office, and the Department of State’s Bureau of Diplomatic Security. They also commended the efforts of Paralegal Specialists Lenisse Edloe, Tasha Harris, and C. Rosalind Pressley of the U.S. Attorney’s Office. Finally, they acknowledged the work of Assistant U.S. Attorneys Michael K. Atkinson and Diane Lucas, who prosecuted the case.
13-402Hogsett Announces Breakup of Long-running International Child Pornography RingRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that federal prosecutors have charged eleven men with participating in what is alleged to have been a worldwide child exploitation ring. Those defendants include Indianapolis and Anderson-area defendants who allegedly participated in a conspiracy to distribute and receive videos and images of child exploitation.
“This conspiracy allegedly stretched across the country and around the world, using sophisticated techniques to hide the orchestrated abuse of dozens of child victims,” Hogsett said. “As these men have learned, though, you aren’t anonymous online – if you engage in this type of behavior, you will be identified and you will face justice.”
“Child pornography and the sexual exploitation of children are crimes that attack the most innocent of victims,” said U.S. Postal Inspector in Charge Gerald O’Farrell. “The U.S. Postal Inspection Service has a long and successful history of investigating crimes against children, and is dedicated to bringing criminals who use the mail for the transport of child pornography to justice.”
According to an indictment unsealed this week, the alleged conspiracy began sometime in 2000 and operated continuously until April 2012. The charged individuals allegedly ran various online chat rooms that were protected by a password that was available exclusively to members of the conspiracy. These chat rooms were allegedly dedicated to the distribution, receipt and possession of child pornography, and were used by its members as a forum to discuss and promote the sexual exploitation of children.
The indictment alleges that many of the conspiracy members had amassed large collections of materials depicting child exploitation. Using these chat rooms and a number of online servers, the co-conspirators allegedly sought to expand their collections and evade law enforcement through the use of sophisticated data encryption software.
In addition, at least four of the defendants allegedly conspired to sexually exploit children and produce new videos and images of that abuse, which could then be distributed to members of the group. Hogsett said that as part of this investigation, nearly one-hundred children around the world have been identified as victims of abuse.
The American defendants charged by the U.S. Attorney’s Office include: John Edwards, age 61, of Indianapolis
Thomas Vaughn, age 44, of Anderson
John Rex Powell, age 42, of Fort Myers, Florida
Donald Printup, age 35, of Niagara Falls, New York
Michael Fredette, age 45, of Waterford, New York
Robert Guillen, age 42, of Wesley Chapel, Florida
David Bebetu, age 50, of Agoura Hills, California
Stephen Harvey Dault, age 47, of McKinney, Texas
Rick Ricardo Leon, age 52, of Arlington, Virginia
John David Gries, age 47, of Bayshore, New York
James McCullars, age 55, of Huntsville, AlabamaHogsett noted that additional defendants have been charged or are under investigation in other jurisdictions, including Canada, Switzerland, and other nations.
One of the charged defendants, John Rex Powell, had previously been charged by the U.S. Attorney’s Office as part of an investigation and prosecution of two Australian citizens who allegedly orchestrated the sexual abuse of their adopted son at the hands of a number of men around the world. Hogsett said that Powell’s alleged involvement in both schemes was key in dismantling this conspiracy.
According to Senior Litigation Counsel Steven D. DeBrota and Assistant U.S. Attorney Brant Cook, who are prosecuting the case for the government along with Trial Attorney Amy Larson with Department of Justice – Child Exploitation and Obscenity Section, the eleven defendants all face up to decades in prison if they are convicted. They also could face significant fines, as well as lifetime supervised release and registration as a sexual offender.
This case was the result of a collaborative investigation led by the U.S. Postal Inspection Service assisted by the Indiana Internet Crimes Against Children Task Force and the Department of Justice’s High Technology Investigative Unit, as part of Project Safe Childhood. Led nationally by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Hamilton County Man Pleads Guilty to Unlawfully Possessing FirearmRead the Press Release
Sonny D. Southall, 29, of McLeansboro, Illinois, pled guilty today in United States District Court in Benton to an indictment charging him with being a felon in possession of a firearm, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on July 9th, alleged that Southall possessed a loaded 9 mm semi-automatic pistol in White County on June 2, 2013. Prior to that date, Southall had been convicted of two felony offenses, making it illegal under federal law for him to possess firearms or ammunition. The firearm Southall possessed was stolen.
Sentencing was set for March 20, 2014, at 10:00 a.m. at the United States District Courthouse in Benton. At that time, Southall faces up to 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release to follow his incarceration.
Southall has been held without bond in the custody of the United States Marshal since his arrest on the federal charges in July. He was again remanded to the Marshal’s custody to await sentencing.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the White County Sheriff’s Department with the assistance of the Bureau of Alcohol, Tobacco, and Firearms.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Gasport Man Sentenced on Drug Conspiracy Charge and Lockport Man Convicted of Drug Conspiracy ChargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that James Dolly, 48, of Gasport, N.Y., who was convicted of conspiracy to possess with intent to distribute, and to distribute, cocaine and crack cocaine, was sentenced to eight months home confinement and three-years supervised release by U.S. District Chief Judge William M. Skretny.
Also, Rodney McGilverly, a/k/a “Patches,” a/k/a “Cliff,” 37, of Lockport, N.Y., pleaded guilty before U.S. Magistrate Judge Leslie G. Foschio, to conspiracy to possess with intent to distribute, and to distribute, cocaine, which carries a maximum penalty of 20 years in prison, a $1,000,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that Dolly distributed cocaine and cocaine base in the Gasport area from June, 2009 through August, 2010, which was supplied to him by co-defendant Damian Ard. Ard was convicted of conspiracy to possess with intent to distribute cocaine base, and is scheduled to be sentenced on January 6, 2014 at 9:00 a.m. From March, 2010, through August, 2010, McGilverly distributed cocaine in the Lockport, which was supplied to him by co-defendant Eric Williams. On September 10, 2013, Williams was sentenced to five years in prison.
Dolly and McGilverly are two of 21 defendants convicted as a result of this drug investigation.
The sentencing and plea are the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, new York Field Division, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, and the Niagara County Drug Task Force, under the direction of Sheriff James Votour.Gang Member from Hollygrove Area, Theron Golston, Sentenced to Life in Prison on Federal Rico, Drug, and Murder ChargesRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced that THERON GOLSTON, aka “Thema,” 23, a resident of New Orleans, was sentenced yesterday by U.S. District Judge Stanwood R. Duval, Jr. to serve the remainder of his life in prison for violating federal RICO, drug conspiracy, firearms conspiracy, and murder charges. GOLSTON was a member of a gang from the Hollygrove area of the city that was involved in several shootings and murders in recent years. To date, all of the indicted members of this gang have pled guilty. The remaining gang members are awaiting sentencing.
GOLSTON had previously pled guilty to participating in the murder of Aaron Allen on February 27, 2007 and to participating in the drive-by shooting that resulted in the murder of Ms. Eula Mae Ivey on June 14, 2010. He also admitted that he and the other gang members were street level dealers of crack cocaine.
A thirty-four count second superseding indictment was returned on November 16, 2012, charging Walter Conley, aka “Ike Neezy”, Tyronne Stevenson, aka “Duke”, THERON GOLSTON, aka “Thema”, Bernell Williams aka “Bussy”, aka “A-Boogie”, Norman Ratcliff, aka “Turk”, and Mark Glenn with participating in a RICO conspiracy, drug conspiracy, firearms conspiracy, and several substantive acts of violence.
Co-defendant Ryan Carroll, aka “Ronnie Boo,” pled guilty to participating in the RICO conspiracy and to discharging a firearm during a drug trafficking crime and a crime of violence. On October 16, 2013, he was sentenced to serve 210 months in federal prison.
Co-defendants Carey Jones, Bernell Williams, and China Stewart also pled guilty to various charges in the indictment and are scheduled to be sentenced on January 22, 2014.Co-defendants Tyronne Stevenson, Walter Conley, Norman Ratcliff, and Mark Glenn also pled guilty to various charges in the indictment and are scheduled to be sentenced on December 11, 2013.
Mr. Polite stated, “This is a clear example of how the federal government will target and convict the dangerous gang members that are responsible for numerous shootings in our community. The life sentence imposed on Mr. Goldston should put other gang members on notice that the Multi-Agency Gang Unit (‘MAG UNIT’) has the ability, the tools, and the knowledge to dismantle an entire criminal enterprise. This is the type of effort that the federal government will continue to put forward to combat violent crime.”
Mr. Polite thanked the federal agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (A.T.F.) who took the lead role in this investigation and who have been steadfast in their resolve to bring these violent offenders to justice. He also thanked the other members of the MAG UNIT who worked on this case and renewed the USAO’s commitment to assist the MAG UNIT in targeting these types of violent offenders.
The Multi-Agency Gang Unit is an N.O.P.D. led division which includes federal agents from A.T.F., the Drug Enforcement Administration, the Federal Bureau of Investigation, and the U.S. Marshals Service, as well as participants from the Orleans Parish Sheriff’s Office, the Louisiana State Police, State Probation and Parole, and the New Orleans District Attorney’s Office.
The case is being prosecuted by Assistant United States Maurice E. Landrieu, Jr.
Four South-Central Hunters charged in taking two bull moose in Denali National ParkRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that four South-central men were charged by information with the illegal take, possession and transport of two bull moose taken in Denali National Park in September 2012.
Anchorage residents, Charlie W. Hart, 55, Deric C. Hart, 33, Wasilla resident, James C. Riggs, 58, and Homer resident, Michael C. Barth, 29, were all charged with a violation of the Lacey Act, and one count each of the unlawful take and unlawful possession of wildlife in a national park. In a separate case, James C. Riggs was also indicted for the illegal possession of an unregistered silencer which was found in his home during the investigation of this case.
According to Assistant U.S. Attorney Steven Skrocki, who presented the case to the grand jury, the four men illegally hunted for Bull Moose on Denali National Park and from September 3, 2012 through September 7, 2012, and during that time illegally killed two Bull Moose on Denali Park property.
Ms. Loeffler commends the National Park Service, the United States Fish and Wildlife Service, and the Bureau of Land Management for their work in the investigation of this case.
An information is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.