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Friday 20 September 2013
Former Accountant of Adult Entertainment Businesses Charged with Tax FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Paul Anthony Ruggieri, of Parkland, Florida, was charged in a nine-count Indictment with one count of conspiring to defraud the lawful functions of the Internal Revenue Service, in violation of Title 18, United States Code, Section 371, and eight counts of aiding and assisting in the filing of false tax returns, in violation of Title 26, U.S.C. Section 7206(2). Defendant Ruggieri made his initial appearance today before U.S. Magistrate Judge Dave Lee Brannon.
According to the charges, Ruggieri provided accounting and return preparation services to Anthony Andreozzi, F & A Concepts, Inc. (F & A) and Galaxy Communications, Inc. (Galaxy), two adult entertainment businesses owned and operated by Andreozzi in the State of Florida. Defendant Ruggieri also provided accounting services to the general public through his business, Strategic Accounting Alliance. As stated in the Indictment, Ruggieri and Andreozzi conspired for the purpose of unlawfully enriching themselves by engaging in a fraudulent scheme to evade the payment of federal income taxes.
As alleged in Indictment, Andreozzi diverted corporate receipts of F & A and Galaxy for his own personal use. In order to conceal his diversion of corporate funds, Andreozzi instructed Ruggieri to falsify the corporate books and records by classifying certain personal expenditures of Andreozzi as business expenses. Ruggieri and Andreozzi caused the preparation and filing of false corporate tax returns for F & A and Galaxy, in that the corporate returns included fraudulent business expenses which reduced each corporations’ income. Ruggieri and Andreozzi also caused the filing of false personal income tax returns for Andreozzi for calendar years 2006, 2007, 2008 and 2009, in that the personal returns failed to include the diverted corporate income, thereby understating on Andreozzi’s personal returns his total income and tax due and owing.
Andreozzi was charged on September 9, 2013, with conspiring to defraud the United States.
If convicted, Ruggieri faces a maximum statutory sentence of up to five years in prison for the conspiracy charge, and three years in prison on each count of willfully aiding and assisting in the filing of false tax returns.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Stephanie D. Evans.
An Indictment is only an accusation, and the defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Foreign National Sentenced for Narcotics and Immigration OffensesRead the Press Release
Juan Gamino-Salinas, 25, a Mexican national, was sentenced to 41 months in federal prison on September 20, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Gamino-Salinas was sentenced in U.S. District Court in East St. Louis.
On June 19, 2013, Gamino-Salinas pled guilty to five felony charges: 1) Possession With Intent to Distribute Methamphetamine; 2) Possession With Intent to Distribute Cocaine; 3) Illegal Re-Entry After Deportation; 4) Possession of a Counterfeit Permanent Resident Card; and 5) Misuse of a Social Security Number.
On February 2, 2013, Illinois State Police stopped Gamino-Salinas’ car on Interstate 70 near Marine, IL, for speeding. Gamino-Salinas consented to the search of his vehicle. Inside Gamino-Salinas’ car, police found an ounce of cocaine and just under two ounces of methamphetamine. Police also found and seized drug ledgers; $2,250 in cash; and drug paraphernalia, including two scales and dozens of clear plastic baggies.
Subsequent to Gamino-Salinas’ arrest, Immigration and Customs and Enforcement agents determined that he had been previously deported to Mexico twice in 2009, and that he possessed false U.S. identification documents, bearing a fictitious name.
Gamino-Salinas has been detained since his arrest in February.
The investigation which resulted in Gamino-Salinas’ arrest and conviction was conducted by the Illinois State Police; the Metropolitan Enforcement Group of Southwestern Illinois, and Immigration and Customs Enforcement.
The case is assigned to Assistant United States Attorney Robert L. Garrison.
Five Men Charged with Robberies at Businesses in TopekaRead the Press Release
TOPEKA, KAN. - Federal charges are filed against five men accused of robberies at Topeka businesses, U.S. Attorney Barry Grissom said today.
A federal indictment unsealed today in U.S. District Court in Topeka charges the men in connection with three armed robberies at local businesses including:- Check Into Cash, 3711 S.W. Plaza Drive in Topeka, July 25, 2013.
- EZ Payday Advance, 2613 S.W. 21st in Topeka, July 29, 2013.
- Family Dollar, 2616 S.E. 6th in Topeka, Aug. 3, 2013.
Defendants named in the indictment are:
- Quartez Norwood, 31, Topeka, Kan., three counts of robbery and three counts of brandishing a firearm in connection with all three robberies.
- Henry Levelle Davis, 40, Topeka, Kan., two counts of robbery and two counts of brandishing a firearm in connection with the robberies at Check Into Cash and EZ Payday Advance.
- Robert Wayne Redmond, 41, Topeka, Kan., two counts of robbery and two counts of brandishing a firearm in connection with the robberies at Check Into Cash and EZ Payday Advance.
- Henry Earl Sirvira, 45, Topeka, Kan., two counts of robbery and two counts of brandishing a firearm in connection with robberies at EZ Payday Advance and Family Dollar.
- Xavier Leron Sims, 26, Topeka, Kan., one count of robbery and one count of brandishing a firearm in connection with the robbery at Family Dollar.
Topeka police and the FBI arrested Davis, Redmond and Sims on Thursday. Norwood and Sirvira are in custody in California and Utah respectively on unrelated charges.
If convicted, they face a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each robbery count, and a penalty of not less than seven years and a fine up to $250,000 on each firearm charge. The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Federal Jury Finds California Man Guilty of Assaulting a Federal Officer in the Carson National ForestRead the Press Release
ALBUQUERQUE – A federal jury sitting in Albuquerque returned a guilty verdict late yesterday afternoon against Michael James Axworthy, 58, originally of Lynwood, Calif., for assaulting a federal officer in the Carson National Forest after a two-day trial. The United States dismissed two related misdemeanor offenses. The guilty verdict was announced by Acting U.S. Attorney Steven C. Yarbrough and Special Agent in Charge Robin L. Poague of the Southwestern Region of the U.S. Forest Service.
Axworthy was arrested on June 4, 2013, on a criminal complaint charging him with the following three misdemeanor offenses: (1) assaulting a federal officer, (2) unlawfully using the forest as a residence, and (3) having a campfire in violation of fire restrictions. The United States subsequently filed a misdemeanor information charging Axworthy with those three offenses.
Trial of this case began on Sept. 18, 2013, and concluded yesterday afternoon when the jury returned a guilty verdict on the assault charge and the United States dismissed the other two charges.
The evidence at trial established that on June 2, 2013, a U.S. Forest Service law enforcement officer received a tip that a man was living in the Carson National Forest and had a campfire burning during Stage One fire restrictions. Based on information from the tipster, the officer went to a location within the Forest where he observed a white tent. After announcing himself as a law enforcement officer, the officer approached the tent and observed a man, later identified as Axworthy, inside. After the officer repeatedly directed Axworthy to step outside the tent, Axworthy came out of the tent and walked towards the officer at an accelerated pace while holding his left hand tucked behind his left thigh. Axworthy was aggravated and upset as he refused to comply with the officer’s demands that he identify the object he was hiding. When he was within five feet of the officer, Axworthy revealed the object in his hand, a small radio, and continued walking towards the officer while yelling at the officer. When the officer told Axworthy to back off and present identification, Axworthy slapped the officer’s hand and started to walk away. As Axworthy turned away from the officer, he placed his hand in his waist area, which led the officer to believe that Axworthy might have a weapon. The officer subsequently arrested Axworthy following a brief confrontation during which Axworthy resisted the officer’s attempts to apprehend him.
At sentencing, Axworthy faces a maximum penalty of twelve months in prison and a $100,000 fine. His sentencing hearing has yet to be scheduled.
This case was investigated by the U.S. Forest Service and is being prosecuted by Assistant U.S. Attorneys William J. Pfulgrath and Raquel Ruiz-Velez.
Federal Jury Convicts Men of Las Vegas Home Invasion RobberyRead the Press Release
LAS VEGAS, Nev. – Following a nine-day jury trial, a federal jury has convicted two Arizona men of committing a home invasion robbery in North Las Vegas, Nev., during May 2012, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Joseph Andrade, 19, and Julian Gaytan, 20, both of Phoenix, Arizona, were convicted this afternoon of one count of conspiracy to travel in interstate commerce in furtherance of racketeering activity, two counts of brandishing a firearm in furtherance of a crime of violence, and one count of interstate travel in aid of racketeering activity.
They are scheduled to be sentenced on Dec. 19, 2013, and face up to five years in prison on the conspiracy charge, up to 20 years in prison on the interstate travel charge, and at least 32 consecutive years in prison on the brandishing charges, as well as fines of up to $1 million.
“This successful prosecution was part of our expanded Project Safe Neighborhood (PSN) program which focuses on violent robberies and other crimes involving the use of firearms by recidivist felons,” said U.S. Attorney Bogden. “This case should serve notice that persons who commit such violent criminal acts will be prosecuted, and when convicted, they will face the prospects of serving very lengthy prison sentences. I would like to thank our prosecution team and law enforcement partners for taking these violent criminals off our streets.”
According to the court records and evidence introduced at trial, on Saturday, May 19, 2012, Andrade, Gaytan, and two co-defendants, Perla Ramirez, 22, and David Duran, 30, also both from Phoenix, Ariz., drove from Phoenix to Las Vegas with the intent to commit a home invasion robbery at a designated residence in North Las Vegas. The defendants drove to the residence and caused one of the occupants to open the front door. The defendants entered the residence brandishing guns and ordered all seven of the occupants of the home to the floor. The defendants threatened to kill the occupants if they did not tell them where money and/or jewelry were located. The defendants ransacked the home in order to locate money or valuable property and stole cash, cellular telephones, jewelry and other property before exiting the residence and either fleeing on foot or returning to their vehicle. North Las Vegas Police Officers were dispatched to the scene at approximately 10:30 p.m. following a call from the occupant of a home across the street where one of the female minor victims had run and advised that men had broken into her house with guns.
Defendants Andrade and Ramirez were arrested outside the residence immediately following the robbery. Gaytan was arrested in Phoenix about six weeks following the robbery, and Duran, who fled the scene, has not yet been arrested and is a fugitive.
Ramirez pleaded guilty on Sept. 3, 2013, to conspiracy to travel in interstate commerce in furtherance of racketeering activity, and is scheduled to be sentenced on Dec. 5, 2013.
The investigation was conducted by the North Las Vegas Police Department and FBI, as part of the Safe Streets Task Force and PSN program. It was prosecuted by Assistant United States Attorneys Cristina D. Silva and Phillip N. Smith, Jr.Federal Grand Jury in Brooklyn Hands Down Indictment in Maralit Gun Trafficking CaseRead the Press Release
Federal Grand Jury In Brooklyn Hands Down Indictment In Maralit Gun Trafficking Case
Duryea ManRead the Press Release
Sentenced For Cocaine Distribution
The United States Attorney's Office for the Middle District of Pennsylvania announced today that Senior United States District Court Judge Edwin M. Kosik has sentenced Joseph Crawford, age 34, of Duryea, Pennsylvania, to 35 months’ imprisonment for transporting cocaine from New York City to Luzerne County and distributing it on numerous occasions between 2011 and May 1, 2012.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Pennsylvania Attorney General’s Office. Assistant United States Attorney John Gurganus prosecuted the case.
According to United States Attorney Peter J. Smith in additional to the 35-month term of imprisonment, Judge Kosik also ordered that Crawford be placed on supervised release for a period of three years following the service of his sentence.Dominican National Sentenced to 42 Months in Prison<br /> in Puerto Rican Identity Trafficking SchemeRead the Press Release
A Dominican national was sentenced today to serve 42 months in prison for her role in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Rosa E. Rodríguez-Vélez of the District of Puerto Rico; Acting Director John Sandweg of U.S. Immigration and Customs Enforcement (ICE); Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS); Director Gregory B. Starr of the U.S. State Department’s Diplomatic Security Service (DSS); and Internal Revenue Service-Criminal Investigation (IRS-CI) Chief Richard Weber.
Arelis Abreu-Ramos, formerly of Philadelphia, was sentenced by U.S. District Judge Gustavo A. Gelpí in the District of Puerto Rico. In addition to Abreu-Ramos’s prison term, Judge Gelpí ordered her removal from the United States to the Dominican Republic after the completion of her sentence.
On June 13, 2013, Abreu-Ramos pleaded guilty in Puerto Rico to one count of conspiracy to commit identification fraud and one count of conspiracy to commit human smuggling for financial gain.
Abreu-Ramos was charged in a superseding indictment returned by a federal grand jury in Puerto Rico on March 22, 2012. To date, a total of 53 individuals have been charged for their roles in the identity trafficking scheme, and 42 defendants have pleaded guilty.
Court documents allege that individuals located in the Savarona area of Caguas, Puerto Rico (Savarona suppliers), obtained Puerto Rican identities and corresponding identity documents. Other conspirators located in various cities throughout the United States (identity brokers) allegedly solicited customers and sold Social Security cards and corresponding Puerto Rico birth certificates for prices ranging from $700 to $2,500 per set. The superseding indictment alleges that identity brokers ordered the identity documents from the Savarona suppliers, on behalf of the customers, by making coded telephone calls. The conspirators are charged with using text messages, money transfer services, and express, priority or regular U.S. mail to complete their illicit transactions.
Court documents allege that some of the conspirators assumed a Puerto Rican identity themselves and used that identity in connection with the trafficking operation. Their customers generally obtained the identity documents to assume the identity of Puerto Rican U.S. citizens and to obtain additional identification documents, such as legitimate state driver’s licenses. Some customers allegedly obtained the documents to commit financial fraud and attempted to obtain a U.S. passport.
According to court documents, various identity brokers were operating in Rockford, Ill.; DeKalb, Ill.; Aurora, Ill.; Seymour, Ind.; Columbus, Ind.; Indianapolis; Hartford, Conn.; Clewiston, Fla.; Lilburn, Ga.; Norcross, Ga.; Salisbury, Md.; Columbus, Ohio; Fairfield, Ohio; Dorchester, Mass.; Lawrence, Mass.; Salem, Mass.; Worcester, Mass.; Grand Rapids, Mich.; Nebraska City, Neb.; Elizabeth, N.J.; Burlington, N.C.; Hickory, N.C.; Hazelton, Pa.; Philadelphia; Houston; Abingdon, Va.; Albertville, Ala.; and Providence, R.I.
Abreu-Ramos admitted that she operated as an identity broker in the Philadelphia area, and that she was a manager and supervisor in the conspiracy. According to court documents, in June 2011, an unauthorized alien in Arlington, Va., applied for a U.S. passport using legitimate Puerto Rico identity documents that had been supplied by Abreu-Ramos. Law enforcement agents uncovered the fraudulent application and prevented the issuance of the U.S. passport.
Abreu-Ramos is the 29th defendant to be sentenced in this case.
The charges are the result of Operation Island Express, an ongoing, nationally-coordinated investigation led by the ICE Homeland Security Investigations (ICE-HSI) Chicago Office and USPIS, DSS and IRS-CI offices in Chicago, in coordination with the ICE-HSI San Juan Office and the DSS Resident Office in Puerto Rico. The Illinois Secretary of State Police; Elgin, Ill., Police Department; Seymour, Ind., Police Department; and Indiana State Police provided substantial assistance. The ICE-HSI Assistant Attaché office in the Dominican Republic and International Organized Crime Intelligence and Operations Center (IOC-2) as well as various ICE, USPIS, DSS and IRS-CI offices around the country provided invaluable support.
The case is being prosecuted by Trial Attorneys James S. Yoon, Hope S. Olds, Courtney B. Schaefer and Christina Giffin of the Criminal Division’s Human Rights and Special Prosecutions Section, with the assistance of the Criminal Division’s Asset Forfeiture and Money Laundering Section, and the support of the U.S. Attorney’s Office for the District of Puerto Rico. The U.S. Attorney’s Offices in the Northern District of Illinois, Southern District of Indiana, District of Connecticut, District of Massachusetts, District of Nebraska, Middle District of North Carolina, Southern District of Ohio, Middle District of Pennsylvania, District of Rhode Island, Southern District of Texas and Western District of Virginia provided substantial assistance.
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html . Anyone who believes their identity may have been compromised in relation to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline . Anyone who may have information about particular crimes in this case should also report it to the ICE tip line or website.
Anyone who believes that they have been a victim of identity theft, or wants information about preventing identity theft, may obtain helpful information and complaint forms on various government websites including the Federal Trade Commission ID Theft Website, www.ftc.gov/idtheft . Additional resources regarding identity theft can be found at www.ojp.usdoj.gov/ovc/pubs/ID_theft/idtheft.html ; www.ssa.gov/pubs/10064.html ; www.fbi.gov/about-us/investigate/cyber/identity_theft ; and www.irs.gov/privacy/article/0,,id=186436,00.html .
District Man Sentenced to Eight Years in Prison for Sexually Assaulting Woman After Entering Her Apartment-Cellphone and Other Evidence Tied Him to the Crime-Read the Press Release
WASHINGTON – Domingo Martinez, 26, of Washington, D.C., was sentenced today to eight years in prison on charges stemming from a home invasion in which he sexually assaulted a woman who had been asleep in her apartment, U.S. Attorney Ronald C. Machen Jr. announced.
Martinez pled guilty in June 2013 in the Superior Court of the District of Columbia to one count each of second-degree burglary and assault with intent to commit first-degree sexual abuse. He was sentenced by the Honorable John Ramsey Johnson. Martinez also will be required to register as a sex offender for the rest of his life.
According to the government’s evidence, at about 2:30 a.m. on May 16, 2013, Martinez appeared inside a woman’s apartment in the 6700 block of 14th Street NW. The woman woke up to see him, wearing a shirt wrapped around his head that served as a mask. He held what at first appeared to be a gun and sexually accosted her.
Once Martinez was close enough to touch her, the victim realized that the object in his hand was a cellphone, not a gun. At this point, she decided to fight back and she bit him on the shoulder during a struggle. He pushed her, causing her to fall, and then ran away.
The victim pursued Martinez through a hallway and grabbed the shirt from his head. As he continued fleeing, he dropped the cellphone, which the victim also picked up. She then ran back to her apartment, locked the door behind her, and called 911 for help.
Based upon the telephone records for the abandoned cellphone, and its contents, including time-stamped photographs and video, police identified Martinez as a suspect and arrested him on May 21, 2013. He lived in the building where the attack took place. At the time of his arrest, Martinez had a bite mark, not yet fully healed, on his left shoulder.
In announcing the sentence, U.S. Attorney Machen commended the work of the Metropolitan Police Department. He also praised the efforts of those who handled the case at the U.S. Attorney’s Office, including Criminal Investigator John Marsh, Victim/Witness Advocate Melissa Milam, and Paralegal Specialist D’Yvonne Key. Finally, he acknowledged the efforts of Assistant U.S. Attorney Heide L. Herrmann, who prosecuted the matter.
13-325District Man Sentenced to 40 Years in Prison for 2012 Slaying in Northwest Washington-Defendant Stabbed Victim During Confrontation on Street-Read the Press Release
WASHINGTON – Herbert G. Hayes, 41, of Washington, D.C., was sentenced today to 40 years in prison for fatally stabbing a man last year in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Hayes was found guilty by a jury in July 2013, following a trial in the Superior Court of the District of Columbia. The Honorable Russell F. Canan sentenced him today. Upon completion of his prison term, Hayes will be placed on five years of supervised release.
According to the government’s evidence, on May 18, 2012 at about 9:30 p.m., Hayes chased the victim, John Wesley Griffin, 42, down the sidewalk in the 1200 block of North Capitol Street NW. As the chase continued, Mr. Griffin yelled, “Police, police!” Mr. Griffin ran into the street and Hayes followed him. Mr. Griffin then turned and faced Hayes, putting up his fists to fight. At that point, Hayes stabbed him. Mr. Griffin staggered to the sidewalk and then collapsed. Hayes stood over him, and with knife in hand, shouted an expletive about the police before fleeing the scene. Mr. Griffin died as a result of his wounds.
Hayes was arrested on May 21, 2012, and has been in custody ever since.
In announcing the sentence, U.S. Attorney Machen praised the work of the detectives, officers and mobile crime scene technicians who investigated the case for the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Mia Beamon, Victim/Witness Advocate Tamara Ince; Litigation Technology Specialists Kimberly Smith and Ron Royal, and Interns Daniel Fletcher and Lauren Sparks. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Melinda Williams and former Assistant U.S. Attorney Mary Chris Dobbie, who secured the indictment in the case, and Assistant U.S. Attorney Adrienne Dedjinou, who prosecuted the case.
13-326District Man Found Guilty of Series of Car Loan Scams That Cheated Victims Out of More Than $185,000- Posed as Car Dealer to Swindle Victims to Buy Cars He Did Not Own -Read the Press Release
WASHINGTON -- Benjamin Grey, 33, of Washington, D.C., was found guilty by a jury today of a total of 21 federal charges, including five counts of bank fraud and seven counts of wire fraud, in connection with a scheme in which he posed as a car dealer to defraud individuals and banks of more than $185,000.
The verdicts, which followed a trial in the U.S. District Court for the District of Columbia, were announced by U.S. Attorney Ronald C. Machen Jr., Kathy A. Michalko,Special Agent in Charge, Washington Field Office, U.S. Secret Service, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
The jury returned guilty verdicts on all charges. The Honorable Ellen S. Huvelle scheduled sentencing for Dec. 17, 2013. Grey faces a maximum sentence of 30 years in prison and a $1 million fine on each bank fraud and wire fraud charge.
According to the evidence presented at trial, Grey claimed to run car dealerships named Planet Cars and GreyMaxx. He persuaded various individuals to apply for car loans to buy luxury cars, such as BMWs, from him and Planet Cars. After each bank or credit union granted the loan, and gave the applicant a loan check to buy the car, Grey took the money and spent it. Afterwards, however, Grey never produced the promised car, and avoided contact with the victim. In fact, Grey never owned the cars in question.
As the evidence showed, each auto loan was between $29,000 and $35,000. After the scheme, each victim was left without the car – but with the car loan coming due. Some victims tried to pay the loans, even though they had been swindled; another declared bankruptcy, devastating her credit. The lending institutions lost the amounts loaned. The individual victims included an Army veteran who had served in Iraq.
Meanwhile, Grey spent the loan checks at bars, nightclubs, and retail establishments in and around the D.C. area, running up bar tabs in the thousands of dollars.
In addition, the evidence at trial showed that Grey executed other, similar confidence schemes. In August and September 2010, Grey defrauded a would-be business partner out of $34,000 by pretending that the money would finance their purchase and re-sale of luxury cars. Similarly, in April 2010, Grey – holding himself out as the owner of Planet Cars – pretended to buy a car from a legitimate car dealership in Bethesda, Md., using a worthless check drawn on a Planet Cars bank account that had been closed for a year.
In announcing the verdicts, U.S. Attorney Machen, Special Agent in Charge Michalko and Chief Lanier expressed appreciation for the work done by those who investigated the case from the Metropolitan Police Department and Secret Service. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Krishawn Graham, Lenisse Edloe, and Tasha Harris, and Legal Assistant Angela Lawrence. Finally, he commended the work of Assistant U.S. Attorney Daniel Friedman, who investigated the case, and Assistant U.S. Attorneys Jonathan Hooks and Christopher Kavanaugh, who investigated and tried the case.
13-328Disrupting A Flight Gets Italian Citizen Six Month Prison TermRead the Press Release
PHILADELPHIA - Massmio Fiorani, 35, of Italy, pleaded guilty and was sentenced yesterday to six months in prison for interference with a flight crew. Fiorani interfered with the duties of crew members and attendants on board a U.S. Airways flight from Barcelona to Philadelphia on August 7, 2013. In addition to the prison term, U.S. District Court Judge Harvey Bartle ordered Fiorani to pay $25,000 restitution to U.S. Airways. Following his release, Fiorani will have an administrative proceeding with U.S. Immigration and Customs Enforcement.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations, the Federal Bureau of Investigation, the Philadelphia Police Department, and the Tinicum Township Police Department. It was prosecuted by Assistant United States Attorney Jennifer Arbittier Williams.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Director of Non-Profit Sentenced in BP Claims Fund Fraud CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and Richard L. Walker, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General - Office of Labor Racketeering and Fraud Investigation, and Jessie Panuccio, Executive Director, Florida Department of Economic Opportunity, announced that Jean Mari Lindor, 32, of Homestead, Florida, was sentenced in federal court in Miami today, for his participation in filing false claims in connection with the Deepwater Horizon explosion and pollution incident in the Gulf of Mexico. Lindor was convicted on charges of mail fraud, wire fraud, access device fraud, and aggravated identity theft, all in connection with fraudulent claims filed by the defendant seeking lost income against the Gulf Coast Claims Facility, the filing of fraudulent tax returns with the Internal Revenue Service, and false claims for unemployment compensation against the State of Florida, in violation of Title 18, United States Code, Sections 1341, 1343, 1029(a)(2) and (b)(1), and 2.
U.S. District Judge K. Michael Moore, who presided over the trial in the matter, sentenced Lindor to 286 months’ in prison, followed by five years of supervised release. A restitution hearing has been scheduled for December 4, 2014.
According to the Indictment and evidence presented at trial, in June 2010, BP established the Gulf Coast Claims Facility (GCCF) for the purpose of administering, mediating, and settling certain claims of individuals and businesses for costs, damages, and other losses incurred as a result of oil discharges due to the April 20, 2010 explosion and fire on the Deepwater Horizon, an oil rig in the Gulf of Mexico that had been drilling an exploration well. In August 2010, the GCCF began receiving and processing such claims of individuals and businesses for costs, damages, and other losses they had incurred as a result of the Deepwater Horizon incident, paying the claims from a $20 billion Trust Fund established for that purpose.
Lindor also used unauthorized access devices during the scheme, consisting of the unique GCCF Claim numbers assigned to his fictitious claims, and without which he would have been unable to communicate with the GCCF, or cause payments to be issued to them. Moreover, Lindor also sought unemployment compensation for more than a year from the State of Florida, falsely certifying that he was not earning income when, in fact, he was actively directing the scheme at Noula.
Furthermore, the evidence at trial showed that Lindor possessed and used without lawful authority the social security numbers of two identity theft victims to file fraudulent tax claims against the IRS, and directed the refunds into either his personal bank account or to bank debit cards.
Mr. Ferrer commended the investigative efforts of the FBI, U.S. Postal Inspection Service, Secret Service, Department of Labor Office of Inspector General, Florida Department of Economic Opportunity and the U.S. Citizenship and Immigration Service, Fraud Detection and National Security Directorate. Mr. Ferrer would also like to thank the National Center for Disaster Fraud (NCDF). This case was prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
Members of the public can report fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, including the 2010 Deepwater Horizon oil spill, through the National Center for Disaster Fraud (NCDF) Disaster Fraud Hotline at 877-NCDF-GCF (623-3423), the Disaster Fraud Fax at 225-334-4707, or the Disaster Fraud e-mail at [email protected].
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.
Denver Man Sentenced to Lengthy Prison Term for Possessing Sawed-off Shotgun and MethamphetamineRead the Press Release
DENVER – Anthony Russell, age 44, of Denver, was sentenced this week by U.S. District Court Judge Philip A. Brimmer to serve 168 months (14 years) in federal prison for possessing a sawed-off shotgun and for possession of methamphetamine with intent to distribute, United States Attorney John Walsh and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Andrew Traver announced. Following his prison sentence, Judge Brimmer ordered Russell to serve 5 years on supervised release. The defendant appeared at the sentencing hearing in custody, and was remanded at its conclusion.
Russell was indicted by a federal grand jury in Denver on April 25, 2013. He pled guilty before Judge Brimmer on June 26, 2013. He was sentenced on September 16, 2013.
According to court documents, including the stipulated facts contained in the defendant’s plea agreement, on February 4, 2013, Denver Police officers executed a search warrant at Russell’s residence. During the lawful search officers found two 12 gauge shotguns, both with shortened barrels. Both also had four rounds of ammunition. Law enforcement also located a glass jar containing methamphetamine and a chrome plated revolver. In the garage officers located a glass jar that contained a two layered liquid, which included a batch of methamphetamine oil. There was also a bottle containing a white powdery substance. According to facts that came out during sentencing, Russell was manufacturing methamphetamine at his residence while his minor step-daughter lived there. The total amount of a mixture or substance containing a detectable amount of methamphetamine located at the defendant’s residence was 570 grams. The defendant also had prior felony convictions.
“The ATF, working with local law enforcement like the Denver Police Department, are targeting the worst of the worst when it comes to illegal gun possession and drug trafficking,” said U.S. Attorney John Walsh. “The 14 year prison sentence handed down in this case demonstrates that possessing an illegal firearm and illegal drugs results in a lengthy loss of personal liberty.”
“A convicted felon who continues to possess illegal crime guns and manufacturers methamphetamine is clearly a danger to this community,” said Denver Special Agent in Charge Andrew Traver. “ATF will continue to work with the Denver Police Department in an attempt to apprehend and remove anyone who blatantly disregards the safety of our citizens.”
This case was investigated by the Denver Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Russell was prosecuted by Assistant U.S. Attorney Jeremy Sibert.
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Clarkston Man Sentenced to 10 Years for Distributing MethamphetamineRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Francisco Munguia Diaz a.k.a Glen Munguia Cadenas, age 38, of Clarkson, Washington, was sentenced today after having pleaded guilty in June, 2013 to Distributing Five Grams or More of Pure Methamphetamine. Senior United States District Court Judge Justin L. Quackenbush sentenced Diaz to a ten-year term of imprisonment and a four-year term of court supervision following release from Federal prison. In addition, Diaz forfeited $185,073 in drug trafficking proceeds, three vehicles, and jewelry to state and Federal authorities. Diaz has been in federal custody since May 8, 2013.
Michael C. Ormsby said: "I commend the officers from the Bureau of Indian Affairs, the Quad City Drug Task Force, and the Drug Enforcement Administration for their tireless efforts in investigating this methamphetamine case. Their strong working partnership is reflected by the successful prosecution of this case. Federal and local law enforcement officers in the Eastern District of Washington continue to work together to root out the scourge of drug trafficking in this District. With their assistance, the United States Attorney's Office for the Eastern District of Washington is committed to prosecuting aggressively and seeking appropriate punishment for traffickers distributing controlled substances in our communities."
The investigation was conducted by the United States Drug Enforcement Administration, Bureau of Indian Affairs, and Quad City Drug Task Force. The case was prosecuted by George J.C. Jacobs, III, an Assistant United States Attorney for the Eastern District of Washington.
13-CR-00061-JLQ
Centreville Woman Pleads Guilty to Health Care FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 20, 2013, Valerie W. Johnson, 56, of Centreville, Illinois, pled guilty to a one-count indictment charging that she engaged in a scheme to commit health care fraud. Sentencing has been set for January 9, 2014, in United States District Court in East St. Louis, Illinois. Johnson will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
During her plea hearing, Johnson admitted that she had submitted false and fraudulent bills in relation to her receipt of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. Johnson admitted to falsely billing the program for $7,842.46 for services that were supposed to be performed by her son. During the days Johnson claimed her son provided services, her son was residing, working and attending school approximately 225 miles away in Springfield, Missouri.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police’s Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian and William E. Coonan.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General or call 1-800-447-8477.
Canadian Man Pleads Guilty to Possession with Intent to Distribute “molly”Read the Press Release
Defendant Caught Smuggling Over 128 Pounds MDMA into the United States from Canada ALBANY, NEW YORK – JOEL CUNNINGHAM, age 30, of Ottawa, Canada, pled guilty today in Albany before United States District Court Judge Glen T. Suddaby to one count of possession with intent to distribute a controlled substance, announced United States Attorney Richard S. Hartunian and Homeland Security Investigations Special Agent-in-Charge James Spero. CUNNINGHAM faces a maximum sentence of 20 years in prison, and is being detained pending his sentencing.
During the plea proceeding, CUNNINGHAM admitted that, on April 9, 2013, he loaded a sport utility vehicle with 58,183 grams of 3,4-Methylenedioxymethamphetamine Hydrochloride (commonly known as “Molly”) and then drove the sport utility vehicle from Canada into the United States through an unmanned border, intending to take the “Molly” to New York City for redistribution.
CUNNINGHAM was observed entering the United States from Canada through an unmanned border crossing in the Akwesasne Mohawk Reservation. Members of the Border Enforcement Security Task Force in Massena, New York followed CUNNINGHAM and later stopped him. Law enforcement officers searched the sport utility vehicle and found the “Molly,” as well as over $140K in U.S. currency, in hidden compartments and duffel bags.
Sentencing is scheduled for February 7, 2014 at 10:00 a.m. in Albany. This case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Wayne Myers.
Buffalo Attorney Pleads Guilty to Submitting False Tax ReturnsRead the Press Release
Buffalo, N.Y.-- -The United States Attorney's Office for the Western District of New York announced today that Lisa M. Yaeger, 49, of Buffalo, N.Y., pleaded guilty before U.S. District Judge Richard J. Arcara to three misdemeanor charges of submitting false documents to the Internal Revenue Service. Each charge carries a maximum penalty of one year in prison, a fine of $100,000 or both.
Assistant U.S. Attorney Gretchen L. Wylegala, who handled the case, stated that the defendant, an attorney who was employed in a variety of public positions, also maintained a private practice. Yaeger failed to report substantial amounts of income she received from her private practice in the years 2005, 2006 and 2007. The tax loss attributable to the undisclosed income exceeded $22,000.
The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigative Division, under the direction of Special Agent- in-Charge Toni M. Weirauch.
Sentencing is scheduled for February 10, 2014, at 12:30 p.m. before Judge Arcara.Avon Lake Woman Pleads Guilty to Human Trafficking and Drug ChargesRead the Press Release
An Avon Lake woman pleaded guilty today to human trafficking and drug trafficking crimes after forcing four women, including two teens, to have sex for money, law enforcement officials said.
Ashley Onysko, 23, pleaded guilty to conspiracy to engage in sex trafficking and drug trafficking. She is scheduled to be sentenced Jan. 14, 2014
“This woman helped force teens to have sex for money,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “These activities happen all around us and it’s the responsibility of the community and law enforcement to work together to end these crimes.”
“The defendants in this case used narcotics to gain control over their victims and forced them to engage in sex acts while lining their own pockets with money,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “The FBI and our law enforcement partners will utilize all necessary resources to bring to justice those that victimize our youth.”
“This is an example of local police and federal law enforcement working together to make our community safer,” said Elyria Police Chief Duane Whitely.
Onysko’s co-defendant, Jeremy Mack, 37, of Elyria, is awaiting trial.
Between December 2012 and April 9, 2013, Mack and Onysko conspired together to provide heroin to four victims with drugs, including heroin and cocaine and then, after the victims incurred drug debts, used force, threats of force, fraud and coercion to compel them to engage in commercial sex acts.
They did this, in part, by posting photographs the victims on backpage.com on a user account that Mack and Onysko created on Dec. 25, 2012, according to the indictment.
At various times, Mack told and caused others to tell the victims that they needed to engage in commercial sex acts to repay the drug debts. The victims did, after which she turned over all proceeds to Mack and/or Onysko, according to the indictment.
This case is being prosecuted by Assistant United States Attorneys Bridget M. Brennan and Carole Skutnik following an investigation by the FBI and Elyria Police Department.
Arlington Man Sentenced to Seven Years for Distributing Child PornographyRead the Press Release
ALEXANDRIA, Va. – Richard Creech, 45, of Arlington, Va., was sentenced today to 84 months in prison, followed by 10 years of supervised release, for distribution of child pornography.
Kathleen M. Kahoe, Acting United States Attorney for the Eastern District of Virginia; and Acting Special Agent in Charge Scot R. Rittenberg of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), made the announcement after sentencing by United States District Judge Claude M. Hilton.
Creech pleaded guilty on May 24, 2013. According to court documents, Creech used a peer-to-peer file sharing program to collect and share child pornography videos, including numerous videos of children between 5 and 12 years old being raped and sexually abused. In total, Creech’s child pornography collection included over 1,100 images and 1,300 videos of children being sexually exploited. Creech also wrote and distributed dozens of stories about children being raped, and he had a 170-page electronic book entitled “How To Practice Child Love,” which provided a step-by-step guide on how to target vulnerable children, coerce them into a sexual relationship, and avoid getting caught.
This case was investigated by HSI with assistance from the Northern Virginia-District of Columbia Internet Crimes Against Children Task Force. Assistant United States Attorneys Matt Gardner and Jay Prabhu prosecuted the case on behalf of the United States.
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.
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.Angel Cortez-Granados, Member of the Granados-Hernandez Sex Trafficking Organization, Sentenced to 15 Years in PrisonRead the Press Release
Earlier today, Angel Cortez-Granados was sentenced in federal court in Brooklyn, New York, to 15 years’ imprisonment, to be followed by five years of supervised release, for the sex trafficking of two victims. In addition, the defendant was ordered to pay $145,815 in restitution to the two victims. On September 20, 2011, Homeland Security Investigations arrested Cortez-Granados as part of an ongoing investigation into the Granados Sex Trafficking organization. The investigation has resulted in the successful prosecution of five Granados family members including Cortez-Granados’s cousins, Eleuterio Granados-Hernandez and Samuel Granados-Hernandez.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York. The sentence was imposed by United States District Judge Sandra L. Townes.
“Angel Cortez-Granados ruthlessly exploited his victims, using threats of violence to force them into a form of sexual slavery. The significant sentence imposed today is an important step in restoring dignity to the defendant’s victims,” stated United States Attorney Lynch. “This sentence reflects our ongoing commitment to eradicate the sex trafficking of young girls.” Ms. Lynch thanked the HSI agents who investigated the case and extended her grateful appreciation to the organizations that provided services and advocacy to the victims in this case, including Sanctuary for Families, Polaris Project, and the law firms of Cleary, Gottlieb, Steen & Hamilton LLP and Steptoe & Johnson LLP.
On March 2, 2012, Cortez-Granados pled guilty to engaging in sex trafficking between April 2011 and August 2011, by smuggling an individual identified in court filings as Jane Doe 1 from Mexico illegally into the United States and forcing her to engage in prostitution.
According to court filings, Cortez-Granados smuggled 21-year-old Jane Doe 1 and another individual identified as 21-year-old Jane Doe 2 from Mexico into the United States for the purpose of trafficking them as prostitutes. When Jane Doe 1 refused to engage in commercial sex acts, Cortez-Granados placed a knife to her throat and threatened that she would never see her children again. Ultimately, Cortez-Granados forced both Jane Doe 1 and Jane Doe 2 to work as prostitutes and provide all of their earnings to him. Jane Doe 1 worked for the defendant in the New York area, Massachusetts, Maryland, Virginia, and North Carolina from 2006 to 2011, and Jane Doe 2 worked for the defendant in North Carolina from April 2010 until September 2011.
At the sentencing proceeding, Jane Doe 2 stated that Cortez-Granados “forced me to prostitute to myself to 100 clients per week to reach a quota of $1,500 dollars.” Jane Doe 2 stated throughout her time with Cortez-Granados, she “felt like a prisoner.” Finally, Jane Doe 2 asked the Court for “justice to be done for myself and my family.”
As set forth in court filings, Cortez-Granados’s cousins, Eleuterio Granados-Hernandez and Samuel Granados-Hernandez, also smuggled young women from Mexico illegally into the United States, forced them to work as prostitutes in New York City and elsewhere, and collected profits from their activities. Both have pleaded guilty to sex trafficking in a separate case, and each faces a mandatory minimum sentence of 15 years in prison.
The government’s case was prosecuted by Assistant United States Attorney Soumya Dayananda.
The Defendant
ANGEL CORTEZ-GRANADOS
Age: 26
MexicoE.D.N.Y. Docket No. CR-11-657 (SLT)
Anchorage Physician indicted for wire fraudRead the Press Release
Anchorage, Alaska - Acting U.S. Attorney Kevin Feldis announced today that an Anchorage physician was indicted by a federal grand jury in Anchorage, Alaska, on wire fraud charges.
Dr. Michael Brandner, 64, of Anchorage, Alaska, was charged with seven counts of wire fraud for engaging in a scheme to defraud his wife and the Alaska State Courts. The indictment alleges that Brandner transferred over $4,000,000 out of the United States to Panama in 2007 and 2008 as part of this scheme. The indictment charges that Brandner provided false documents to the court to support his claims that the money had been loaned to a foreign entity and was unavailable to be disbursed as part of divorce proceedings. In 2011, Brandner secretly returned the money to the United States, then totaling $4,656,061.85, in the name of a shell corporation. This money was seized in Irvine, California, and is the subject of civil forfeiture proceedings in federal court in Los Angeles.
Assistant U.S. Attorney Bryan Schroder, who presented the case to the grand jury, indicated that Brandner faces a maximum sentence of 20 years in prison, and a $250,000 fine. The indictment also includes a criminal forfeiture provision. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon a number of factors, including the seriousness of the offense and the prior criminal history of the defendant.
The Internal Revenue Service, Criminal Investigations Division, and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation leading to the indictment in this case. The U.S. Attorney's Office for the District of Alaska is partnering with the Department of Justice Tax Division in the prosecution of 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.
Allentown Pair Charged in Sex Trafficking SchemeRead the Press Release
PHILADELPHIA - Deshawn King, 33, and Daniel Blount, 31, both of Allentown, PA, are charged by Indictment , unsealed today, with running a sex trafficking operation, incorporating heroin as a means of punishing and controlling their victims. King and Blount are both charged with conspiring to commit sex trafficking of women by force, fraud, and coercion; two counts of sex trafficking by force, fraud, or coercion, and two counts of attempted sex trafficking by force, fraud, and coercion. King and Blount were taken in to federal custody today. The indictment was announced by United States Attorney Zane David Memeger and Special Agent-in-Charge John P. Kelleghan with Immigration and Customs Enforcement Homeland Security Investigations.
According to the indictment, between October 2012 and April 2013, King and Blount recruited and enticed heroin-addicted women to perform commercial sex acts at their direction by promising a continuous supply of money and heroin. It is further alleged that the defendants used the website “backpage.com” to post sexually explicit photos of the women in advertising them for commercial sex acts. “Johns” (men wanting to have sex with the recruited women) called the telephone number posted in the ad and met the women at hotels designated and paid for by the defendants. It is further alleged that King and Blount provided heroin to the women as a means of control or withheld the heroin as a form of punishment, causing the women to suffer withdrawal; used physical force, including a taser, and threats of force against the women to cause or attempt to cause them to continue performing commercial sex acts; and received and kept all the proceeds generated by the women engaging in commercial sex acts. The defendants also threatened to kill at least two of the victims and took turns raping at least one of the victims.
“The defendants in this case preyed on vulnerable women, dehumanized them, threatened and abused them, and sold them for their own profit,” said Memeger. “These defendants made a living through a horrific form of modern day slavery. We will not tolerate this type of criminal inhumanity and will continue to work with our law enforcement partners to eradicate sex trafficking.”
“Homeland Security Investigations, working in collaboration with the Allentown Police Department and our law enforcement partners, will use all of our resources to investigate and arrest individuals engaged in sex trafficking. This cold, heartless enterprise, where criminals risk individuals’ lives, will not be tolerated.” said John Kelleghan, special agent in charge of HSI Philadelphia. “This case highlights the importance of law enforcement cooperation to apprehend human traffickers while working to provide assistance to the victims who were exploited.”
If convicted, both defendants face a maximum possible sentence of life in prison with a mandatory minimum of 15 years.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations, with assistance from the Allentown Police Department and the Office of the Lehigh County District Attorney. It is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
Click here to view the indictment
An Indictment/Information/Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Alexandria Man Sentenced for CounterfeitingRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that Raja Khalid Jamaleddin, 33, of Alexandria, was sentenced Wednesday by U.S. District Judge Dee D. Drell to 18 months in prison and three years of supervised release for possessing more than $8,600 worth of counterfeit dollar bills. He was also ordered to pay an $8,000 fine. Jamaleddin pleaded guilty June 18, 2013.
According to evidence presented at the guilty plea, authorities received information that Jamaleddin was keeping illegal items at a storage unit. Authorities searched a storage unit on October 5, 2012 that Jamaleddin was renting in Alexandria and found $8,648 worth of counterfeit $1,000s, $50s, $20s and $2s in addition to other illegal items. The serial number on one of the counterfeit $1,000 bills matched a bill Jamaleddin pawned in 2011.Homeland Security Investigations and the Alexandria Police Department conducted the investigation. Assistant U.S. Attorney John Luke Walker prosecuted the case.
20-count Indictment Returned for Rico Violations, Violent Crimes in Aid of Racketeering, Federal Gun Control, and Controlled Substances ActsRead the Press Release
DELOYD JONES, age 21; BYRON JONES, age 23; SIDNEY PATTERSON, age 22; ERVIN SPOONER, age 25; ROMALIS PARKER, age 20; NYSON JONES, age 29; TRE CLEMENTS, age 22; ANDREALIE LEWIS, age 34; MORRIS SUMMERS, age 22; TYONE BURTON, age 20; TYRON BURTON, age 19; and PERRY WILSON, age 22; were charged on September 19, 2013 in a 20-count indictment for Violations of the Racketeer Influenced Corrupt Organization Act, Violent Crime in Aid of Racketeering, Federal Gun Control Act, and Controlled Substances Act, announced U.S. Attorney Kenneth Allen Polite, Jr. The indictment was unsealed today.
This case arises out of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The investigation targeted an area which exhibited a disproportionate amount of violent crimes and narcotics trafficking. During the course of the investigation, specific individuals were identified as the main perpetrators of many of the violent acts and much of the narcotics distribution which occurred in the 8th Ward of New Orleans. This group controlled narcotics distribution activities through violence and threats of violence, to include murder, attempted murder, and assaults. They were referred to as Ride or Die or “R.O.D.”
The indictment charges DELOYD JONES with RICO Conspiracy; Conspiracy to Distribute and Possess with Intent to Distribute Cocaine Base, Heroin and Marijuana; Conspiracy to Possess Firearms During and In Relation to Crimes of Violence and Drug Trafficking Offenses; Murder in Aid of Racketeering (3 counts); Causing Death Through the Use of a Firearm (3 counts); Assault with a Dangerous Weapon in Aid of Racketeering (2 counts); and, Use and Carrying of a Firearm During and In Relation to a Crime of Violence or Drug Trafficking Offense (2 counts).
BYRON JONES is charged with RICO Conspiracy; Conspiracy to Distribute and Possess with Intent to Distribute Cocaine Base, Heroin and Marijuana; Conspiracy to Possess Firearms During and In Relation to Crimes of Violence and Drug Trafficking Offenses; Murder in Aid of Racketeering; Causing Death Through the Use of a Firearm; Assault with a Dangerous Weapon in Aid of Racketeering (2 counts); and, Use and Carrying of a Firearm During and In Relation to a Crime of Violence or Drug Trafficking Offense (2 counts).
SIDNEY PATTERSON is charged with RICO Conspiracy; Conspiracy to Distribute and Possess with Intent to Distribute Cocaine Base, Heroin and Marijuana; Conspiracy to Possess Firearms During and In Relation to Crimes of Violence and Drug Trafficking Offenses; Assault with a Dangerous Weapon in Aid of Racketeering; Use and Carrying of a Firearm During and In Relation to a Crime of Violence or Drug Trafficking Offense; Murder in Aid of Racketeering; and, Causing Death Through the Use of a Firearm.
ERVIN SPOONER is charged with Conspiracy to Distribute and Possess with Intent to Distribute Cocaine Base, Heroin and Marijuana; Conspiracy to Possess Firearms During and In Relation to Crimes of Violence and Drug Trafficking Offenses; and Possession with Intent to Distribute a Controlled Substance.
ROMALIS PARKER, NYSON JONES, TRE CLEMENTS, ANDREALIE LEWIS, MORRIS SUMMERS, TYONE BURTON, TYRON BURTON, and PERRY WILSON are all charged with Conspiracy to Distribute and Possess with Intent to Distribute Cocaine Base, Heroin and Marijuana, and Conspiracy to Possess Firearms During and In Relation to Crimes of Violence and Drug Trafficking Offenses.
BYRON JONES and SIDNEY PATTERSON are charged with murdering Travis Arnold on February 24, 2010. DELOYD JONES is charged with murdering Rodney Coleman on November 9, 2010. DELOYD JONES is charged with murdering Devin Hutton on January 17, 2011. DELOYD JONES and SIDNEY PATTERSON are charged with murdering Corey Blue on January 18, 2011. DELOYD JONES, BYRON JONES and SIDNEY PATTERSON each face a maximum term of life imprisonment or the death penalty.
ERVIN SPOONER, ROMALIS PARKER, NYSON JONES, TRE CLEMENTS, ANDREALIE LEWIS, MORRIS SUMMERS, TYONE BURTON, TYRON BURTON, and PERRY WILSON each face up to 20 years in prison followed by 5 years of supervised release and a fine of up to $250,000.
U. S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives as part of the Multi-Agency Gang Unit led by the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Nolan D. Paige and Special Assistant United States Attorney Brian C. Ebarb on assignment from the Orleans Parish District Attorney’s Office.
(Download Indictment )
Thursday 19 September 2013
Zachary Lee Blaseg Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on September 18, 2013, before U.S. District Judge Donald W. Molloy, ZACHARY LEE BLASEG, a 36-year-old resident of Livingston, was sentenced to a term of:
- Prison: 78 months
- Special Assessment: $100
- Forfeiture: computers and DVDs
- Supervised Release: 15 years
BLASEG was sentenced in connection with his guilty plea to possession of child pornography.
In an Offer of Proof filed by Special Assistant U.S. Attorney Ole Olson, the government stated it would have proved at trial the following:
In June and July of 2012, an agent for the Montana Division of Criminal Investigation was conducting an online Internet investigation to identify persons using peer-to-peer file sharing networks to download, distribute, and possess child pornography. The agent downloaded several files containing child pornography from an IP address that he later determined was assigned to an address in Livingston.
On October 15, 2012, the agent obtained and executed a search warrant on the address in Livingston. After conducting forensic previews of the computers found in the residence, the agent seized two custom computer towers from a bedroom being rented by BLASEG.
Later that day, the agent made contact with BLASEG on the Montana State University campus in Bozeman. The agent placed BLASEG under arrest on an unrelated traffic warrant. BLASEG agreed to a recorded interview with the agent and admitted that he lived at the address in Livingston. He admitted that the two computers that the Agent seized were his computers by confirming the description of these computers. He admitted that he had been searching for and downloading child pornography using these computers. BLASEG confirmed that the agent would find a large amount of child pornography on both computers.
A forensic examiner conducted a forensic examination on the computers seized from BLASEG's bedroom. Between the two computer towers, the examiner found a total of 477 videos of child pornography and 2,299 images of child pornography. Some of the images portrayed prepubescent children. Some of the images portrayed children engaged in sadistic or masochistic conduct.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that BLASEG will likely serve all of the time imposed by the court. In the federal system, BLASEG does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Montana Division of Criminal Investigation.
Winchester Resident Arrested for Impersonating A Federal OfficerRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
MARTINSBURG, WEST VIRGINIA - A 36-year old Winchester, Virginia, resident was arrested on September 19, 2013, pursuant to an Indictment returned by a Federal Grand Jury.
According to United States Attorney William J. Ihlenfeld, II, TALBERT FOSTER DEHAVEN, III was named in a 4-count Indictment charging him with three counts of “Impersonating an Officer,” and one count of “Possessing a United States Marshal Badge.” DEHAVEN is alleged to have claimed to be a U.S. Marshal engaged in the location and apprehension of a wanted criminal.DEHAVEN faces up to three years in prison on the impersonation charges and up to six months in prison on the possession charge.
This case will be prosecuted by Assistant United States Attorney Paul T. Camilletti and was investigated by the United States Marshals Service.
All of the charges contained in the above-referenced indictment are merely accusations and not evidence of guilt, and the defendant is presumed innocent until and unless proven guilty. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Virginia Man Sentenced to 25 Years in Prison in Shooting of Security Guard at Family Research CouncilDefendant Targeted Organization in Planned AttackRead the Press Release
WASHINGTON – Floyd Lee Corkins, II, 29, was sentenced today to 25 years in prison on three felony charges, including a terrorism offense, in the August 2012 shooting of a security guard at the Family Research Council in downtown Washington, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Corkins, of Herndon, Va., pled guilty in February 2013 in the U.S. District Court for the District of Columbia to charges of committing an act of terrorism while armed, assault with intent to kill while armed, and interstate transportation of a firearm and ammunition. The Honorable Chief Judge Richard W. Roberts sentenced him. Upon completion of his prison term, he will be placed on five years of supervised release.
Corkins has been in custody since his arrest after the Aug. 15, 2012 shooting.
This marked the first time that a defendant has been charged with and convicted of committing an act of terrorism under a provision of the District of Columbia’s Anti-Terrorism Act of 2002 that covers criminal actions committed with the intent to “intimidate or coerce a significant portion of the civilian population of the District of Columbia or the United States.”
According to the government’s evidence, on Aug. 15, 2012, at about 10:45 a.m., Corkins entered the office of the Family Research Council (FRC), at 801 G Street NW, and encountered an unarmed security guard. Corkins retrieved a firearm from his backpack and pointed it at the security guard. The security guard charged Corkins and a struggle ensued, during which Corkins fired three shots, striking the guard in the arm. Despite the gunshot wound and Corkins’s subsequent discharges of the gun, the security guard, Leonardo Johnson, heroically succeeded in disarming the defendant and forcing him to the ground and onto his belly.
According to a statement of offense, signed by the defendant as well as the government, Corkins targeted the Family Research Council because of its views, including its advocacy against recognition of gay marriage. He entered the building with the intention of shooting and killing as many employees of the organization as he could.
“A security guard’s heroism is the only thing that prevented Floyd Corkins, II from carrying out a mass shooting intended to kill as many people as possible,” said U.S. Attorney Machen. “Our entire community is thankful to the hero who stood up to this heinous attack. Today’s 25-year prison sentence demonstrates the steep price to be paid for turning to violence to terrorize your political enemies.”
“Acts of terrorism, like the one that Mr. Corkins admitted to committing in pursuit of political aim, are horrific events that instill a sense of fear on our community,” said Assistant Director in Charge Parlave. “The FBI applauds the heroic acts of the security guard who deterred Mr. Corkins from inflicting harm on additional victims. With our law enforcement partners, the FBI will respond to, secure and investigate scenes and bring violent actors to justice.”
“I want to commend FRC employee Leonardo Johnson for his heroism and the first responding officers for their quick assessment of the situation, which brought stability and control to the chaos,” said Police Chief Cathy L. Lanier. “As recent events have shown us, quick thinking and bravery during incidents like this can save many lives.”
According to the statement of offense, Corkins purchased a semiautomatic pistol from a store in Virginia on Aug. 9, 2012, and picked up the weapon the following day. On the afternoon of Aug. 13, he rehearsed his planned trip to the Family Research Council. On the night before the shooting, Corkins returned to the gun store and engaged in shooting practice.
On the morning of Aug. 15, 2012, Corkins rode Metrorail from Virginia and into the District of Columbia, got off at the Gallery Place stop, and went to the Family Research Council. To gain access into the building, he falsely told the security guard, Mr. Johnson, that he was there for an interview as a prospective intern. Upon gaining entry, Corkins approached the receptionist desk, which Mr. Johnson was manning, intending to shoot and kill him. However, Mr. Johnson fought back and, as the two men scuffled, Corkins fired his gun three times, striking Mr. Johnson once in his left arm in the process. After Mr. Johnson subdued Corkins, Corkins stated, “It’s not about you,” but about the organization’s policies. He also was heard making remarks such as, “I don’t like these people, and I don’t like what they stand for.”
In a search after the shooting, MPD officers discovered two fully loaded magazine clips in one of Corkins’s front pants pockets, as well as a Metro card and a handwritten list containing the names of the Family Research Council and three other organizations that openly identify themselves as having socially conservative agendas. A search of Corkins’s backpack turned up, among other items, a box of 50 rounds of 9 mm ammunition. They also found 15 individually wrapped sandwiches that Corkins had purchased the previous day from Chick-fil-A.
Corkins later made statements to the FBI in which he said that he was a political activist and considered the Family Research Council to be a lobbying group. He also stated that he intended to kill as many people as possible and smother the Chick-fil-A sandwiches into their faces. Among other things, he said, “Chick-fil-A came out against gay marriage so I was going to use that as a statement.”
Corkins also revealed the steps he took in planning the attack, saying that he had been thinking about perpetrating similar violence for years but never carried out an attack. Had he not been stopped at the Family Research Council, he stated, he planned to go to the second organization on the list he was carrying and wage a similar shooting there.
Mr. Johnson, who also was the building’s manager, underwent emergency surgery in which metal plates were inserted into his left arm so that shattered bones could heal. Numerous bullet fragments remain in his arms, and he was unable to work for months.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave and Chief Lanier expressed their appreciation to all those who investigated the case from the FBI’s Washington Field Office and the MPD. They also expressed appreciation to those who provided assistance from the U.S. Attorney’s Office, including Assistant U.S. Attorney Jonathan M. Malis; Special Assistant U.S. Attorney George P. Varghese; Paralegal Specialists Selena Zuhoski and Devron Elliott; Legal Assistant Donice Adams; Litigation Technology Specialist Paul Howell, and Victim/Witness Advocate Yvonne Bryant.
Finally, they commended the efforts of Assistant U.S. Attorneys Ann H. Petalas and T. Patrick Martin, of the National Security Section of the U.S. Attorney’s Office, who prosecuted the case.
13-322Violent White Supremacist Prison Gang Member Sentenced to More Than Eight Years for Prison Assault Resulting in Serious Bodily InjuryRead the Press Release
Orlando, Florida - Chief U.S. District Judge Anne C. Conway today sentenced Scott Michael Patrick (48, Portland, Oregon) to 8 years and 4 months in federal prison for assault resulting in serious bodily injury. He was found guilty by a federal jury on June 12, 2013. Patrick will begin serving the sentence upon completion of his current federal sentence, which was imposed following a federal conviction for bank robbery. Patrick has been held in isolation due to his violent past and association with a violent white supremacist prison group.
According to court documents, Patrick, who was an inmate at the Coleman Correctional Complex, carried out a plan to viciously attack the victim. On February 3, 2007, Patrick went to the victim's assigned unit where he began shadow boxing and stretching inside of another inmate's cell before attacking the victim. After the victim walked past the cell, Patrick and another inmate began brutally beating the victim. A third inmate joined in the fight and stabbed the victim six times while Patrick continued to strike the victim until he collapsed to the floor, smacking his head against a metal kick plate. Patrick is a member of the Aryan Resistance Movement, a violent white supremacist prison gang.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Vincent A. Citro and James D. Mandolfo.
Vince Lee Whiteman Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on September 19, 2013, before U.S. District Judge Donald W. Molloy, VINCE LEE WHITEMAN, a 23-year-old resident of Lame Deer and an enrolled member of the Northern Cheyenne Tribe, was sentenced to a term of:
- Prison: 62 months, consecutive to another sentence
- Special Assessment: $200
- Supervised Release: 3 years
WHITEMAN was sentenced after a federal district court trial in which he was found guilty of assault with a dangerous weapon and aiding and abetting assault with a dangerous weapon.
Assistant U.S. Attorney Brendan P. McCarthy prosecuted the case for the United States.
At trial, the following evidence and testimony was presented to the jury.
On the evening of July 29, 2011, the victim was with his nephew and they were drinking together. At some point they met up with WHITEMAN and then, later, met up with Zachary Knows His Gun. All four drove to Soldier Gulch Road where they parked the car and continued to drink. The victim and Knows His Gun were in the back seat of the car. WHITEMAN had a knife with him.
An argument about who was tougher led Knows His Gun to ask WHITEMAN for his knife. WHITEMAN gave him his knife. Knows His Gun then stabbed the victim in the neck. The victim fought back, which resulted in WHITEMAN joining the fight and, according to the victim and Knows His Gun, also stabbing the victim in the neck. The victim got out of the car and was able to run away. The victim identified both Knows His Gun and WHITEMAN as the assailants.
After hiding in the hills for a period of time, the victim went to a house for help.
WHITEMAN was interviewed and admitted that he gave Knows His Gun his knife, but claimed that he did not know why Knows His Gun wanted the knife. He denied stabbing or assaulting the victim and, in fact, claimed that he pulled Knows His Gun away from the victim and tried to help the victim.
Knows His Gun, the nephew, and another witness were interviewed and described the knife that WHITEMAN was carrying the day of the assault. Knows His Gun and the other witness provided law enforcement with drawings of the knife during the investigation.
WHITEMAN was arrested on tribal charges and his pants, which appeared to have blood on them, were seized. DNA analysis confirmed that the major contributor of the DNA extracted from the blood stain on WHITEMAN's pants was the victim's.
Knows His Gun pleaded guilty to assault with a dangerous weapon and is serving a 37-month federal sentence.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that WHITEMAN will likely serve all of the time imposed by the court. In the federal system, WHITEMAN does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Two Union County, N.J., Women Indicted in Phony Check SchemeRead the Press Release
NEWARK, N.J. – Two Union County, N.J., women were indicted by a federal grand jury today for their roles in a wide-ranging counterfeit check scheme, U.S. Attorney Paul J. Fishman announced.
Synethia Bland, 29, and Latisha White, 28, both of Elizabeth, N.J., were charged with one count of conspiracy to commit bank fraud and three counts of bank fraud, all of which caused losses of at least $400,000.According to the indictment and other documents filed in this case:
Between October 2009 and May of 2012, Bland and White created more than 150 counterfeit checks, most or all of which were in amounts of less than $5,000. Bland and White recruited numerous individuals who either held bank accounts at TD Bank or would be willing to open a new account at that bank. Bland and White induced them to participate in their scheme by promising to share some of the proceeds.
After obtaining the cooperation of an account holder, Bland and White would deposit one of their counterfeit checks into that person’s bank account. Within a day or two of such a deposit, and before the bank realized that the deposited check was counterfeit, Bland and White would arrange to draw down the funds credited by the deposit. Funds were drawn through ATM withdrawals, cash withdrawals at banks and the purchase of money orders and merchandise.
Bland and White orchestrated the deposits of more than $600,000 in counterfeit checks into more than 120 different bank accounts. Among such deposits were the deposits of counterfeit checks in the amounts of $4,529 on July 12, 2010; $4,865 on Feb. 13, 2012, and $4,725 on May 2, 2012.
Each of the four charges is punishable by a maximum potential penalty of 30 years in prison and a fine of $1 million.
The charges and allegations contained in the indictment and complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; postal inspectors under the direction of U.S. Postal Inspection Service Inspector in Charge Maria L. Kelokates; investigators at the Union County Prosecutor’s Office under the direction of Acting Prosecutor Grace H. Park; and investigators at the Morris County Prosecutor’s Office under the direction of Acting Prosecutor Fredric M. Knapp.
The government is represented by Assistant U.S. Attorney Bohdan Vitvitsky of the U.S. Attorney’s Office Economic Crimes Unit.
13-383
Defense counsel:
Bland: Rubin Sinins Esq., Springfield, N.J.
White: Ruth M. Liebesman Esq., Paramus, N.J.Bland, Synethia et al Indictment
Two Fujikura Ltd. Executives Indicted for Roles in Fixing Prices on <br /> Automobile Parts Sold to Subaru to Be Installed in U.S. CarsRead the Press Release
A federal grand jury in Detroit returned an indictment against two Fujikura Ltd. executives for their roles in an international conspiracy to fix prices of auto parts used in automotive wire harnesses sold to Subaru and installed in U.S. cars, the Department of Justice announced today.
The indictment, filed today in U.S. District Court for the Eastern District of Michigan, in Detroit, charges Ryoji Fukudome and Toshihiko Nagashima, both Japanese nationals, with participating in a conspiracy to fix prices of automotive wire harnesses sold to Fuji Heavy Industries–an automaker more commonly known by its brand name, Subaru–for installation in automobiles sold in the United States and elsewhere.
Fukudome was employed by Fujikura as general manager of the Automotive Global Marketing Department from April 2001 to April 2006 and Nagashima was employed by Fujikura as manager of the Fujikura Wire Harness Center in Ohta, Japan, from July 1994 to April 2006, and as general manager of the Automotive Global Marketing Department from April 2006 to April 2009.
Fujikura is a Toyko-based manufacturer of automotive wire harnesses. Automotive wire harnesses are automotive electrical distribution systems used to direct and control electronic components, wiring and circuit boards. Fujikura pleaded guilty to its role in the conspiracy in June 2012, and was sentenced to pay a $20 million criminal fine.
The indictment alleges, among other things, that from at least as early as September 2005 until at least February 2010, Fukudome, Nagashima and their co-conspirators attended meetings in Japan to reach collusive agreements to rig bids and allocate the supply of automotive wire harnesses sold to Subaru. The indictment alleges that Fukudome, Nagashima and their co-conspirators had further communications to monitor and enforce the collusive agreements.
“International cartels targeting U.S. businesses and consumers pose a serious threat to our competitive market place,” said Scott D. Hammond, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The Antitrust Division is working closely with competition enforcers abroad to ensure that there are no safe harbors for executives who engage in international cartel crimes.”
“Those who engage in price fixing, bid rigging and other fraudulent schemes harm the automotive industry by driving up costs for vehicle makers and buyers,” said John Robert Shoup, Acting Special Agent in Charge, FBI Detroit Division. “The FBI is committed to pursuing and prosecuting these individuals for their crimes.”Fukudome and Nagashima are 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 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 Fukudome and Nagashima, 11 companies and 18 executives have been charged in the Justice Department’s ongoing investigation into the automotive parts industry. To date, more than $874 million in criminal fines have been imposed and 14 individuals have been sentenced to pay criminal fines and to serve prison sentences ranging from a year and a day to two years each. One other executive has agreed to serve time in prison and is scheduled to be sentenced on Sept. 25, 2013.
The charges are the result of 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 Antitrust Division’s National Criminal Enforcement Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry 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 FBI’s Detroit Field Office at 313-965-2323.
Two Canadians Charged with Credit Card FraudRead the Press Release
BUFFALO, N.Y. --U.S. Attorney William J. Hochul, Jr. announced today that Petar Petrov, 41, of Mississauga, Ontario, and Evgeniy Bandarmaliev, 50, of Toronto, Ontario, were arrested and charged by criminal complaint with conspiracy to commit access device fraud and use of counterfeit access devices. The charges carry a maximum penalty of 10 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that according to the complaint, on September 2, 2013, Petrov attempted to enter the United States at the Lewiston Queenston Bridge. During an inspection, law enforcement officers found 10 counterfeit access devices.
After consultation with Canadian law enforcement, Special Agents with Homeland Security learned that Petrov and his associate, Bandarmaliev, were under investigation by Canadian authorities for placing illegal skimming devices on ATM machines in Canada. The machines captured account information, including PIN numbers, from ATM customers. Agents then obtained numerous security photographs from banks in the United States, including several in the Buffalo area, which depicted Pertov and Bandarmaliev using counterfeit access devices with the information from the Canadian accounts to withdraw cash. The complaint alleges that Pertov and Bandarmaliev obtained over $35,000 from this illegal activity between July 30, 2013 and September 2, 2013.
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.
The complaint is the result of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.Troy Resident Indicted on Federal Child Pornography ChargesRead the Press Release
Tyler Andrew Bergland, 28, of Troy, Illinois, has been indicted by a federal grand jury for knowingly receiving and possessing child pornography, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Count 1 of the indictment charges that from January to July of this year, Bergland used a desktop computer connected to the internet knowingly to download child pornography images and videos. Knowingly receiving child pornography carries a mandatory minimum five-year prison sentence and is punishable by as much as 20 years in prison, a $250,000 fine, and supervised release for life. Bergland also faces up to 10 years in prison on Count 2 of the indictment, which charges that on July 23, 2013, he knowingly possessed additional child pornography on a CD.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case is being investigated by the Madison County Sheriff’s Department, Computer Crimes Division, and the FBI Cyber Crimes Task Force. The prosecution is assigned to Assistant United States Attorney Nathan D. Stump.
Members of the public are reminded that an indictment is merely an accusation, and that all criminal defendants are presumed innocent until proven guilty in a court of law.
Troy Man Pleads Guilty to Attempting to Entice A Minor to Engage in Sexual ActsRead the Press Release
Defendant Used his Cellular Telephone to Attempt to Arrange a Sexual Encounter with a
Twelve-Year-Old GirlALBANY, NEW YORK — MICHAEL HEPPELLE, age 42, of Troy, New York, pled guilty today in Albany before Chief United States District Court Judge Gary L. Sharpe to one count of attempted online enticement of a minor, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division. HEPPELLE faces a mandatory minimum sentence of at least ten years of imprisonment and up to a maximum sentence of life imprisonment. HEPPELLE was detained pending his sentencing.
Pursuant to a written plea agreement, HEPPELLE admitted that between approximately September 24, 2012 and October 3, 2012, he called a cooperating witness and offered to pay $500 if the cooperating witness could arrange for HEPPELLE to have a sexual encounter with a twelve-year-old girl. The cooperating witness reported his/her concerns to law enforcement, who in turn, told the cooperating witness to tell HEPPELLE that if he was serious about engaging in sexual acts with the twelve-year-old girl, he could meet her on October 3, 2012 at a particular time, at a pre-arranged location in Rensselaer County. On October 3, 2012, HEPPELLE arrived at the pre-arranged location at the pre-determined time to meet with and engage in sexual acts with the girl. HEPPELLE was then arrested and was found to be in possession of $500 in U.S. currency, a cellular telephone, two condoms, and a lubricant typically used during sexual intercourse.
Sentencing is scheduled for January 21, 2014, at 9:00 a.m. in Albany, New York. This case was investigated by the Federal Bureau of Investigation and the Rensselaer County Sheriff’s Office. This case is being prosecuted by Assistant United States Attorney Rick Belliss.
Terrell Wright Pleads Guilty to Multiple Charges for Pointing A Gun at Two Syracuse Gang Task Force DetectivesRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian, announces that TERRELL WRIGHT, age 29, of Syracuse, pled guilty today in U.S. District Court in Syracuse to the Indictment, which charged him with: (1) assaulting two detectives from the Syracuse Gang Violence Task Force (“GVTF”) (Count One); (2) use and carry of a handgun during the assault (Count Two); and (3) being a convicted felon in possession of a handgun (Count Three).
As part of his plea WRIGHT admitted the following facts:
On Tuesday, December 18, 2012, Syracuse Police detectives Melvin DeBottis and Timothy Galanaugh were both federally deputized members of the Syracuse Gang Violence Task Force ("GVTF"). At approximately 12:50 p.m. that day, while engaged in the performance of their official duties, DeBottis and Galanaugh were driving in a government-issued vehicle when they observed Person A, a suspected East Side gang member, walking westbound in the 1600 block of East Fayette Street in Syracuse, New York with his brother, the defendant. Because Person A was suspected of being involved in a shooting the night before, the detectives decided to stop and talk with him. As they were pulling their vehicle to the curb, they observed the defendant pull a small, black semi-automatic handgun from his waistband and point it at DeBottis and Galanaugh. DeBottis and Gallanaugh both drew their handguns as they got out of the car and advanced towards the defendant and Person A shouting "drop the gun." At that point, Person A was subdued and the defendant ran off. A chase ensued and the defendant was found hiding in a plastic deck box a few minutes later. The gun in question, a Glock model 27, .40 caliber handgun, with a laser sight, was recovered on the ground a few feet from where the defendant had pointed it at DeBottis and Galanaugh.
During his plea allocution, WRIGHT admitted under oath that he has never had a job and he made his money by selling drugs on the streets of Syracuse.
WRIGHT faces the following maximum penalties at sentencing, which is scheduled for March 10, 2014:
Count One: Up to 20 years imprisonment, followed by three years of supervised release, and up to a $250,000 fine;
Count Two: At least seven years imprisonment that must run consecutive to any sentence on Counts One and Three, followed by three years of supervised release, and up to a $250,000 fine;
Count Three: Up to 10 years imprisonment, followed by three years of supervised release, and up to a $250,000 fine;
WRIGHT acknowledged that he has two prior felony drug convictions and was currently on parole from the second conviction. Thus, he qualifies as a Career Offender under the federal sentencing guidelines and he will face greater punishment.
Further questions or inquiries may be directed to Assistant U.S. Attorney John M. Katko, who is prosecuting the case, at (315) 448-0916.
Tenth V-not Gang Member Pleads Guilty to Rico ConspiracyRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York, announces that NATE KING, age 23, of Syracuse, pled guilty this morning in U.S. District Court in Syracuse to an indictment which charged him and ten others with conspiring to exploit their membership in the V-NOT Gang to engage in a pattern of racketeering activity which included acts of murder, attempted murder, drug trafficking, and robbery. KING is the tenth defendant to plead guilty in this case.
The case against Kahari Smith, the sole remaining co-defendant, remains pending. King is presumed innocent until the case against him reaches its conclusion.
At sentencing, KING faces up to life imprisonment, a $250,000 fine, and five years of supervised release following any period of incarceration.
The Indictment to which KING pled alleges that from at least 2003 through May 2012 members of the V-Not Gang: (1) maintained a specific geographic territory within the City of Syracuse in which only gang members can sell crack cocaine and marijuana; (2) protected that exclusive crack distribution territory with violence; (3) obtained drugs from various suppliers; (4) projected a very violent attitude and responded to violence with violence in order to preserve their stature in the gang community; (5) used graffiti, hand signs, and tributes on their clothing to slain gang members to signify their gang membership; (6) used criteria such as a willingness to use violence, ability to sell drugs, and familial connections to determine membership; and (7) routinely carried and used firearms in connection with their gang activity.
There are multiple acts of violence and drug distribution set forth in the Indictment, including 1 murder, 10 other shootings, 8 other acts of gun possession, and 18 acts of crack distribution and/or possession with intent to distribute crack. With respect to the murder, the Indictment includes allegations that on November 26, 2010, gang member Kahari Smith shot and killed Kihary Blue on Interstate 81 in downtown Syracuse as part of an ongoing feud between the V-Not and Bricktown gangs.
The trial for Kahari Smith is set to commence on October 1, 2013, in Syracuse. However, a hearing has been scheduled for this afternoon at 3:30 p.m. in Syracuse before the Hon. Norman Mordue for a possible disposition of the case.
This prosecution resulted from a long-term investigation conducted by the Syracuse Gang Violence Task Force, which is comprised of agents and detectives from the following agencies: United States Department of Justice, Bureau of Alcohol, Tobacco, and Firearms (Syracuse Office), the Syracuse Police Department, the Onondaga County Sheriff's Department, the New York State Police, and the United States Marshals Service. The Onondaga County District Attorney’s Office and the Drug Enforcement Administration - Syracuse office, also assisted in the investigation.
Further questions or inquiries may be directed to Assistant U.S. Attorney John M. Katko, who is prosecuting the case, at (315) 448-0916.
Superseding Indictment Names Eighth Defendant in Interstate Contraband Cigarette Conspiracy Charged by Way of Superseding IndictmentRead the Press Release
PROVIDENCE, R.I. – A fifteen-count superseding federal indictment returned by a grand jury in Providence on Wednesday names eight individuals and expands the scope of federal charges previously brought in a complex interstate contraband cigarette trafficking conspiracy allegedly responsible for the sale in Rhode Island of more than $1.2 million dollars of contraband cigarettes. The superseding indictment also includes charges related to alleged conspiracies to defraud the Supplemental Nutrition Assistance Program (SNAP), commonly referred to as the food stamp program, and the Social Security Administration.
Additional allegations of food stamp fraud and the unauthorized acquisition of food stamp funds contained in the superseding indictment come, in part, based on information developed during an ongoing joint federal and state investigation into more than $3 million dollars in alleged food stamp fraud in Rhode Island announced on September 5, 2013, by United States Attorney Peter F. Neronha.
In May 2013, a federal grand jury returned a six-count indictment charging Wissam Khalil, 40, of Central Falls, a Providence convenience store owner; his brothers Bassam Khalil, 49, and Najd Khalil, 25, of Pawtucket; Abdullah Alnahas, 36, of Cranston, a Providence convenience store owner; Bassam Kiriaki, 45, a Pawtucket accountant; and Richard Larrain, 23, of Providence, an enlisted soldier in the U.S. Army Reserves, with allegedly participating in a conspiracy to possess, transport and distribute contraband cigarettes in Rhode Island. A seventh defendant, Valeria Mendez (Khalil), 30, of Central Falls, wife of Wissam Khalil, was charged with conspiring to make and making false statements to a government official in an application to the United States Department of Agriculture (USDA) to participate as a retailer in the food stamp program.
In addition to naming the defendants charged in the indictment returned in May, the superseding indictment returned on Wednesday charges Nazir Khalil, 75, father of Wissam, Bassam, and Najd Khalil, with participating in a conspiracy to defraud the Social Security Administration. It is alleged that Nazir, who resides outside the United States, participated in a conspiracy to fraudulently apply for and collect Social Security disability benefits.
Additionally, the superseding indictment includes additional charges against several of the defendants previously named, including conspiracy to engage in money laundering; money laundering; structuring; conspiracy to engage in food stamp fraud; and food stamp fraud.
The superseding indictment alleges that Wissam Khalil, Bassam Kiriaki and another person conspired to produce a sworn letter submitted to the USDA in support of an application of Valeria Mendez (Khalil) to participate in the Food Stamp Program as a retailer, knowing that the contents of that letter were false and/or incomplete. It is alleged that the intent of the conspiracy was to mask family relationships as it pertained to the true past and present ownership of a Providence convenience store. It is alleged that the true information was withheld to ensure participation as a retailer in SNAP.
It is also alleged that several of the defendants conspired in various conspiracies to allow SNAP benefit recipients to use their Electronic Benefit Transfer cards to exchange their food stamp benefits for cash, a violation of the program’s laws and regulations. It is alleged that in return, the defendants added a surcharge to the recipients’ withdrawal of SNAP benefits, usually an amount equal to or more than that of the amount of cash benefit received by the recipient.
The superseding indictment was announced by Peter F. Neronha, United States Attorney for the District of Rhode Island; Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; John Collins, Acting Special Agent in Charge of the Boston office of the Internal Revenue Service, Criminal Investigations; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in New England; Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations; and William G. Squires, Special Agent in Charge of the U.S. Department of Agriculture Office of Inspector General.
On May 8, 2013, more than a dozen teams of federal and state law enforcement agents and officers executed federal arrest and search warrants, arresting seven individuals and searching ten locations where a significant quantity of contraband cigarettes, approximately $100,000 in cash, business records and four vehicles, all allegedly connected to the trafficking operation, were seized. The majority of cash and cigarettes seized were discovered stashed in sophisticated hides in several of the locations.
It is alleged that as part of the conspiracy to traffic contraband cigarettes into Rhode Island, in July 2011 several “shell” corporations in Virginia were created and vacant retail storefronts were rented in Virginia for the purpose of making it appear that cigarettes being purchased in Virginia for resale in Virginia. The cigarette packages purchased included Virginia tax stamps, reflecting a Virginia tax of thirty-five cents per package. It is alleged that between July 2011 and continuing until May 2013, more than 30-thousand cartons (6 million) of cigarettes valued at more than $1.2 million dollars were purchased in Virginia and shipped to Rhode Island in a truck bearing Rhode Island War Veteran Plates. It is alleged that on numerous occasions the truck was driven by Richard Larrain, while wearing his United States Army uniform. It is alleged that he wore his Army uniform in an effort to gain favor and avoid law enforcement detection.
It is alleged that the cigarettes were distributed and sold in Rhode Island at or near full-retail price, including a tax payment of $3.50 per package. It is alleged that the lack of payment of the cigarette tax to the state of Rhode Island resulted in a loss of approximately $1.05 million dollars of tax revenue.
An indictmentis merely an allegation 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.The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
The matters charged in the indictment were investigated by the Rhode Island State Police, Federal Bureau of Investigation, Internal Revenue Service Criminal Investigations, United States Social Security Administration Office of Inspector General – Office of Investigations, Homeland Security Investigations, and the U. S. Department of Agriculture Office of Inspector General.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/Wissam Khalil, 40
Central Falls, RI
Counts 1-15Bassam Khalil, 48
Pawtucket, RI
Counts 1, 2, 3, 4, 5Najd Khalil, 26
Pawtucket, RI
Counts 1, 2, 5, 6-11, 12-14, 15Valeria Mendez (Khalil), 31
Central Falls, RI
Count 15Nazir Khalil, 75
Central Falls, RI
Counts 3, 4Abdullah Alnahas, 35
Cranston, RI
Counts 1, 2Bassam Kiriaki, 45
East Weymouth, MA
Counts 1, 2, 15Richard Larrain, 24
Providence, RI
Counts 1, 2, 15Count I: Conspiracy
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised releaseCount II: Cigarette Trafficking
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised releaseCount III: Conspiracy to Obtain Social Security Benefits
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised releaseCount IV: Social Security Fraud
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised releaseCount V: Conspiracy to Commit Money Laundering
Max Penalties: 20 years imprisonment; $500,000 fine; 3 years supervised releaseCounts VI-XI: Money Laundering
Max Penalties: 20 years imprisonment; $500,000 fine; 3 years supervised releaseCount XII-XIV: Structuring
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised releaseCount XV: Conspiracy to Commit Food Stamp Fraud
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised release###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]South Daytona Man Sentenced to Fifteen Years in Federal Prison for Possession with Intent to Distribute "Crack" Cocaine and Possession of Firearm and AmmunitionRead the Press Release
Orlando, Florida - U.S. District Judge G. Kendall Sharp yesterday sentenced Anthony V. White (31, Daytona) to fifteen years in federal prison for possession with intent to distribute cocaine base, commonly known as "crack" cocaine, and for possessing a firearm and ammunition after having been previously convicted of a felony offense. He was sentenced to a 5-year term of supervision, following his release from prison. The court also ordered White to forfeit the handgun and ammunition seized from him at the time of the offenses. White pleaded guilty on June 25, 2013.
According to court documents, on the morning of March 29, 2012, in connection with a hit and run accident investigation, officers found a stolen car in the parking lot of the La Quinta Inn on W. International Speedway Boulevard in Daytona Beach. The investigation led officers to room 246. When officers knocked on the door, White fled by jumping from the balcony, with a brown purse in his hand. White was apprehended, and the brown purse was found to contain twenty-one baggies of "crack" cocaine, as well as a scale for weighing the drugs. Left behind in the hotel room was a black duffle bag, with a firearm sticking out, and White’s wallet (with identification) next to it.
As a previously convicted felon, White is prohibited from possessing a firearm or ammunition under federal law. Moreover, White's extensive criminal record qualified him as an Armed Career Criminal under federal sentencing statutes.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Daytona Beach Police Department. It was prosecuted by Assistant United States Attorney E. Jackson Boggs Jr.
Sentences for September 12 - 19, 2013Read the Press Release
Steven G. Gayman, 55, of Loveland, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on September 19, 2013, for possession with intent to distribute methamphetamine. Gayman was arrested in Platte County, Wyoming. He received 138 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and a $250.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Nicholas Austin Becker, 26, of Aspen, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on September 16, 2013, for distribution of at least 100 milligrams but less than 200 milligrams of LSD. Becker was arrested in Denver, Colorado. He received two years of probation, 40 hours of community service, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Troy Raymond Morton, 40, of Bellingham, Washington, was sentenced by Federal District Court Judge Alan B. Johnson on September 16, 2013, for being a felon in possession of a firearm. Morton was arrested in Seattle, Washington. He received 33 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and a $250.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. National Park Service.
Tina F. Knott, 40, of Lander, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 12, 2013, for social security fraud. Knott appeared pursuant to a subpoena. She received five years of probation and was ordered to pay a $100.00 special assessment. Restitution was ordered and will be determined at a later date. This case was investigated by the Social Security Administration, Office of the Inspector General.
Charles Lee Caines, 33, of Riverton, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 12, 2013, for possession of child pornography. Caines was arrested in Lander, Wyoming. He received 72 months imprisonment, to be followed by 22 years supervised release, and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Mark Lee Oberg, 29, of Green River, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 12, 2013, for being a felon in possession of a firearm. Oberg was arrested in Green River, Wyoming. He received 37 months imprisonment, to be followed by three years supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Rosedale Residents Admit to Fraudulently Obtaining $186,677 in Social Security Disability BenefitsRead the Press Release
ABINGDON, VIRGINIA – Brenda Gale Vance and Billy Leonard Vance of Rosedale, Virginia, pled guilty yesterday in United States District Court to conspiring to defraud the United States. The Vances admitted to conspiring to defraud the United States by concealing the fact that Billy Vance was working and earning income while receiving Social Security disability benefits.
At the guilty plea hearing, the Court was informed that from 2003 through 2012, Brenda Vance and Billy Vance were employed by the same company. However, to keep Billy Vance’s employment hidden from the Social Security Administration, the Vances’ employer kept Billy Vance’s employment off of the books and reported all of Billy Vance’s income to the government as having been earned by Brenda Vance. Accordingly, the Social Security Administration was not aware that Billy Vance was working and, as a result, continued to pay him Social Security disability benefits.
“Social Security provides needed support to Americans who are unable to work due to disability,” United States Attorney Timothy J. Heaphy said today. “Individuals who lie about disability and circumvent the Social Security system undercut the system’s efficiency. We will continue to seek out and prosecute individuals who falsely obtain Social Security benefits and ensure the system continues to serve the truly disabled.”
At sentencing, each defendant faces a sentence of up to five years in prison and a fine of up to $250,000.00. As part of the plea agreement, at the guilty plea hearing the Vances made full restitution to the Social Security Administration in the amount of $186,677.00. A sentencing hearing has been scheduled for December 11, 2013.
The investigation of the case was conducted by the Internal Revenue Service – Criminal Investigation and the Social Security Administration – Office of Inspector General. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Radford Man Charged with Operating Ponzi SchemeRead the Press Release
ROANOKE, VIRGINIA – A Radford, Va., man who allegedly bilked investors out of more than $590,000 with promises of high interest returns on investments in his company, has been charged by a federal grand jury sitting in the United States District Court for the Western District of Virginia in Roanoke.
In an indictment returned today, the grand jury has charged Charles G. Shomo, 63, of Radford, with three counts of mail fraud, two counts of securities fraud and one count of money laundering.
Charges were filed following a thorough and cooperative investigation by the United States Postal Inspection Service, the Virginia State Corporation Commission, the Commonwealth’s Attorneys’ Offices for Giles, Smyth, Floyd and Wythe counties, along with the Sheriff’s Offices for Giles, Smyth, Floyd, Wythe and Pulaski counties.
According to the indictment, in 1999 Shomo founded P&G Enterprises LLC, a business originally established to purchase and set-up retail ATM and credit card processing systems throughout Virginia, West Virginia and North Carolina. P&G purportedly developed revenue from fees charged to users who obtained cash from P&G ATMs and from retailers that used P&G’s credit card processing service.
It is alleged that between December 2006 and June 2013 Shomo solicited investors under the representation that investor funds would be used to load ATM units and generally fund the operation of the ATM business. In return, Shomo offered investors promissory notes that typically matured over a one-year time period and paid an annualized interest rate of at least 5.95 percent. Unbeknownst to investors, Shomo was using investor funds for his personal expenses and to help fund an unrelated scooter business.
Additionally, Shomo is accused of using new investors’ funds to pay existing P&G note holders. The indictment claims that between March 2010 and June 2013, Shomo received in excess of $595,000 in proceeds from the sale of P&G promissory notes to investors.
Assistant United States Attorney C. Patrick Hogeboom III and Gauhar R. Naseem, Associate General Counsel-Financial Services, Office of General Counsel for the Virginia State Corporation Commission will prosecute the case for the United States. A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Pittsburgh Oncology Practice Pleads Guilty to Buying Unapproved Foreign DrugsRead the Press Release
United States Attorney Laura E. Duffy announced today that Jan C. Seski, M.D. & Associates, P.C., an oncology practice based in Pittsburgh, Pennsylvania, pleaded guilty to a criminal charge of having caused the introduction of an unapproved drug into interstate commerce and was ordered to pay a $100,000 fine. Magistrate Judge Karen S. Crawford also ordered the defendant to place ads in two medical journals, warning of the dangers of unapproved drugs.
In pleading guilty earlier today before Judge Crawford, the medical practice admitted that between December 4, 2008 and May 25, 2011, the practice ordered $973,795 worth of foreign versions of the oncology drugs Eloxatin7, Gemzar7 and Taxotere7 from GlobalRxStore.com, and had them shipped through Oberlin Medical Supply of San Diego. The drugs ordered by the practice were determined to be foreign versions of these drugs and were not approved by the Food and Drug Administration for use in the United States.
According to sentencing documents filed with the court, this case came to light in May of 2011, when federal agents visited Oberlin Medical Supply's offices in San Diego. Maher Idriss, (charged in Criminal Case No. 12cr1775-WQH) the owner of Oberlin Medical Supply, had been working in conjunction with Martin Bean (charged in Criminal Case No. 12cr3734-WQH) and others of GlobalRxStore.com (GlobalRx) to supply foreign oncology drugs to doctors throughout the United States. At Oberlin, the agents discovered numerous boxes of oncology drugs that bore labeling indicating that the products had been manufactured outside of the United States and were not approved for use in this country.
The medical practice provided agents with a copy of a label for boxes of Gemzar received from GlobalRx. The labeling indicated that the product was manufactured by Eli Lilly in Fegershaim, France. The labeling was partially in English and partially in Turkish. The labels did not bear the words "Rx only" as required by the FDA, and did not bear the National Drug Code ("NDC") numbers used for Medicare billing in this country. Moreover, the labels were different in color from the FDA-approved labeling for the U.S. product.
The medical practice later provided to the government one of the vials of drugs that was in the box. When tested, the vial was found to have the active ingredient used in the manufacture of Gemzar. However, without such testing there is no assurance that other foreign drugs purchased by the defendant (outside of the closed chain system established by the FDA to protect patients in this country) all contain the active ingredient. Just recently, in February, 2013, the FDA warned doctors about batches of counterfeit Avastin (an oncology drug) that had been sold to U.S. doctors that did not contain any of the active ingredients, the third such incident in several months.
DEFENDANT Criminal Case No. 13cr3316-KSC Jan C. Seski, M.D. & Associates, P.C.
Pittsburgh, Pennsylvania Date of Incorporation: 1973 SUMMARY OF CHARGESIntroduction into Interstate Commerce of an Unapproved Drug, a misdemeanor, in violation of Title 21,
AGENCIES
United States Code, Section 331(d), 333(a)(1) and 355(a)Food and Drug Administration, Office of Criminal Investigations
Federal Bureau of InvestigationPhiladelphia Man Charged in Three Bank RobberiesRead the Press Release
Darnell Thomas, 43, of Philadelphia, Pa., was charged today by Indictment with 3 counts of bank robbery announced United States Attorney Zane David Memeger. Thomas is charged with robbing Citizens Bank, 6324 Stenton Avenue, on January 24, 2013; PNC Bank, 3244 North Broad Street, on April 20, 2013, and the same Citizens Bank, located at 6324 Stenton Avenue, on April 22, 2013. In each robbery, the indictment alleges, Thomas handed a note to the bank tellers demanding cash.
If convicted Thomas faces a maximum of 60 years imprisonment.
The case was investigated by the Federal Bureau of Investigation, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Virgil B. Walker.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pamlico County Drug Traffickers Sentenced as Part of “Operation No Quarter”Read the Press Release
NEW BERN – United States Attorney Thomas Walker, District Attorney Scott Thomas and District Attorney Kimberly Robb announced that today in federal court, United States District Judge Louise W. Flanagan sentenced ALLEN GEROME GIBBS, 38, of Bayboro, NC and JESSIE LEE PEARSON, 36, of Greenville, NC to federal prison as a result of “Operation No Quarter.”
GIBBS was sentenced to 189 months’ imprisonment while PEARSON received a sentence of 141 months’ imprisonment. Both will be placed on supervised release for a period of 5 years following the completion of their prison sentences. In addition, GIBBS was also ordered to pay $1,900 in restitution to the Pamlico County Sheriff’s Office. If he is unable to pay the restitution up front, he will be required to participate in the Bureau of Prisons’ Inmate Financial Responsibility Program to pay back the money while he is incarcerated. As part of his plea agreement, PEARSON agreed to forfeit to the government $99,763 in cash seized by agents as a part of the investigation.
PEARSON was arrested on July 4, 2011, after a shipment of approximately 14 kilograms of cocaine was seized in Pamlico County from a truck driven by Renato Torres-Eguino, of Phoenix, Arizona. That cocaine was destined for PEARSON’s cocaine source of supply, Jorge Acosta-Muro, of Arapahoe, North Carolina. Acosta-Muro intended to sell the cocaine to PEARSON and Kevin Cornelious Davis, of Bayboro, North Carolina, who, in turn, planned to sell the cocaine to their customers, who included GIBBS and Tobia Mila Moye, of Grifton, North Carolina. The investigation revealed that PEARSON, who lived in Greenville but operated a commercial fishing business in Pamlico County, was responsible for distributing over 130 kilograms of cocaine throughout Pitt and Pamlico Counties since 2002.
GIBBS was indicted after agents with the Craven County and Pamlico County Sheriff’s Offices utilized a confidential informant to purchase cocaine from GIBBS on a number of occasions in Craven and Pamlico Counties during a timeframe spanning from 2011 to 2012. Further investigation revealed that GIBBS was involved in the distribution of over 8 kilograms of cocaine in the Craven and Pamlico County areas since his release from prison on prior drug charges in 2008.
During previous sessions of court, Judge Flanagan sentenced the others involved as follows: Torres-Eguino was sentenced to 236 months’ imprisonment. Acosta-Muro was sentenced to 270 months’ imprisonment. Davis was sentenced to 131 months’ imprisonment. Moye was sentenced to 122 months’ imprisonment.
The Organized Crime Drug Enforcement Task Force (OCDETF) Operation "No Quarter" was designed to attack the infrastructure of the Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These DTO's are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation spanned ten years and five North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. Law enforcement officials seized drugs with a street value $4.6 million, including 127 kilograms of cocaine, 53 pounds of crystal methamphetamine, 160 pounds of marijuana, and 32 grams of heroin. Additionally, $2.2 million in U.S. Currency, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.
Investigation of this case was conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico; the Internal Revenue Service - Criminal Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshal’s Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) - Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff's Office; the Pamlico County Sheriff's Office; the Lenoir County Sheriff's Office; the Craven County Sheriff's Office; the Carteret County Sheriff's Office; the Beaufort County Sheriff's Office; the New Bern Police Department, the Wayne County Sheriff's Office; the Person County Sheriff's Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff's Office, and the Wilson Police Department.
The federal prosecutions were handled by Special Assistant United States Attorneys Glenn Perry and Augustus Willis. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office and Mr. Willis is a prosecutor with District 3-B District Attorney’s Office encompassing Carteret, Craven and Pamlico Counties. District Attorneys Kimberly Robb and Scott Thomas have assigned Mr. Perry and Mr. Willis to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their assignments to the United States Attorney’s Office have been made possible by grants funded by the Governor’s Crime Commission.Orange County Residents Guilty of Federal Racketeering Crimes “Whites Only” Enterprise Dealt Methamphetamine and MurderRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – Three Vidor, Texas residents have pleaded guilty to racketeering charges related to their association with a “white’s only” criminal enterprise that engaged in methamphetamine distribution and murder in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Juanette Marie Cunningham, a/k/a Netty, 46, Michael Taylor Word, 45, and Erica Nicole Parrott, 27, pleaded guilty to conspiracy to distribute methamphetamine on Sep. 18, 2013, before U.S. Magistrate Judge Zack Hawthorn.
Five other defendants, Craig Pipps, a/k/a Lone Wolf, 40, of Vidor, Mikell Allen Cunningham, a/k/a Mikey, 28, of Vidor, Ricky Allen Nichols, 54, of Vidor, Cassi Diane Hetzel, 37, of Silsbee, Texas and Mack Langston Warner, 33, of Silsbee, pleaded guilty to the same charge earlier this week.
The eight were named along with four others in a seven-count superseding indictment that was returned by a federal grand jury on Aug. 7, 2013. According to the indictment, Pipps, Kenny Don Stanley, 25, of Vidor, Tanner Lynn Bourque, a/k/a Two Shoes, a/k/a Hitman, 33, of Vidor, Kristopher Leigh Guidry, a/k/a Hollywood, 28, of Vidor, and Vicki Stark-Fitts, 49, of Hull, Texas, participated in the operation and management of the “SWS” gang.
According to the indictment, the SWS is a race-based organization operating inside and outside of jails and prisons in Texas and elsewhere. SWS was founded during the 1990s by inmates within the Texas Department of Criminal Justice. SWS is also known as “Solid Wood Soldiers” and “Separate White State.” Although the founders established SWS for protection of white inmates and advancement of white supremacy and white separatism, SWS expanded its objectives to include illegal activities for profit, including trafficking methamphetamine and firearms. SWS protects its power, territory, and profits through intimidation and violence, including assaults, robbery, and murder.
According to information presented in court, Pipps used his position as president of SWS to encourage SWS members and associates to enrich SWS through criminal activity including the distribution of methamphetamine. In August 2010, Pipps and Guidry agreed that Guidry, Bourque and other SWS members would raise money for Pipps and SWS through criminal activities including the sale of methamphetamine. The stated goal of the conspiracy was to raise $30,000 so that Pipps and SWS could purchase real property for a “separatist community.” Under the agreement, Pipps was to receive control of the funds upon his impending release from federal prison.
From September 2010 to January 2011, members manufactured “shake and bake” methamphetamine for distribution in the Orange County area of Texas. In February 2011, Bourque, Guidry and other SWS members became closely associated with Stark-Fitts, who supplied them with crystal methamphetamine and firearms. Crystal methamphetamine is a purer form of methamphetamine that is imported from Mexico. According to information presented in court, on Mar. 14, 2011, Stanley, Bourque, Guidrey and Stark-Fitts murdered James Lee Sedtal, a/k/a Lil Bit, in connection with the methamphetamine conspiracy.
The eight defendants pleading guilty this week face up to 40 years in federal prison. Earlier this summer, Stanley, Bourque, and Guidry pleaded guilty to murder in aid of racketeering. In connection with their guilty pleas, Bourque, Guidry, and Stanley admitted that they sought to maintain and increase their position within SWS by murdering Sedtal. Bourque, Guidry, and Stanley face a punishment of life imprisonment. Stark-Fitts pleaded guilty to a racketeering violation and faces up to life in federal prison. Sentencing dates have not been set.
This case is being prosecuted as part of the Project Safe Neighborhoods Time Machine Initiative. Time Machine is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
The case is being investigated by the ATF, FBI, U.S. Marshals Service, U.S. Secret Service, U.S. Bureau of Prisons, DEA, Texas Rangers, Department of Public Safety CID, Texas Department of Criminal Justice OIG, Orange County Sheriff’s Office, Hardin County Sheriff’s Office, Jasper County Sheriff’s Office, Tyler County Sheriff’s Office, Jefferson County Sheriff’s Office, and Beaumont Police Department, and is being prosecuted by Assistant U.S. Attorney John B. Ross.Ohio Man Sentenced for Aiding and Abetting His Brother in a Multi-Million Dollar Fraud SchemeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that William W. Wilson, 23, of Columbus, Ohio, who was convicted of aiding and abetting his elder brother, Michael Wilson, in the possession of money unlawfully taken from a federally insured bank, was sentenced to 18 months probation by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Paul J. Campana, who handled the case, stated that William Wilson, acting under the direction of Michael Wilson, assisted his older brother in July 2010 in obtaining $71, 875 from an investor who resided in Utah. The investor sent the money through a California-based escrow agent in two separate wire transfers four days apart. Nearly all of the funds, however, were immediately frozen and later seized through the efforts of the FBI, the Internal Revenue Service, and the U.S. Attorney’s Office. The money subsequently was returned to the victim investor. At sentencing, Chief Judge Skretny noted that William Wilson did not benefit financially from his role in the offense.
Michael Wilson, 26, of Toronto, Ontario, is charged in a 47-count indictment returned by a federal grand jury December 2010. The indictment charges Michael Wilson with an $8,000,000 investment fraud scheme involving several companies allegedly controlled by Michael Wilson, and known generally as New Frontier Holdings. Michael Wilson was arrested in Canada in July 2013 on an extradition warrant arising from the indictment. Michael Wilson’s extradition hearing in Canada is scheduled for December 12, 2013.
Today's sentencing is the result of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent- in-Charge Toni M. Weirauch.Ocala Man Sentenced to More Than 17 Years in Federal Prison for Firearm PossessionRead the Press Release
Ocala, Florida - Senior U.S. District Judge Wm. Terrell Hodges today sentenced Christian Labrent Moore (31, Ocala) to 17 years and 6 months in federal prison for possession of a firearm and ammunition affecting commerce by a convicted felon. Moore pleaded guilty on June 18, 2013.
According to court documents, on March 20, 2013, deputies from the Marion County Sheriff's Office responded to a report of illegal drug sales in the area of SW Second Street, in Ocala. Once there, the deputies observed Moore sitting on the front porch of a residence holding a clear baggie of marijuana and cocaine. As the deputies approached Moore, they saw him remove a loaded firearm from his pocket and toss it into a trash can. Moore spontaneously told the deputies that he had just traded drugs for the firearm and that he had just been released from prison. A subsequent records check confirmed that Moore had been released from the Florida Department of Corrections on January 15, 2013, where he had been serving time for drug distribution. Moreover, Moore's prior record of drug and violent crimes made him eligible for an enhanced sentence in federal court as an Armed Career Criminal.
This case was investigated by the Marion County Sheriff's Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This 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.
Nine Arrested and Charged with Drug ConspiracyRead the Press Release
One Remaining Fugitive Sought
CHARLOTTE, N.C. – Nine of the ten men named in a federal criminal indictment were arrested this morning by law enforcement on federal drug conspiracy charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. A federal criminal indictment returned by a Charlotte grand jury on Tuesday, September 17, 2013, was unsealed today following the early morning round-up of the nine defendants. The last of the ten defendants named in the indictment remains a fugitive. The indictment is the result of a joint Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by federal, state, and local law enforcement agencies.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas; Greg McLeod, Director of the North Carolina State Bureau of Investigations (NC SBI); Chief Stacy Conley of the Gastonia Police Department; Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department; and Chief David Belk of the Mount Holly Police Department.
The indictment alleges that from in or around 2002 to the present, the defendants conspired with each other and others to distribute and to possess with intent to distribute 5 kilograms or more of cocaine and 280 grams or more of crack cocaine in Gaston and Mecklenburg Counties. The 10 defendants charged with one count of drug conspiracy are:
• Derwin Durham, a/k/a “Red,” 56, of Gastonia, N.C. • James Michael Barber, a/k/a “Big Cheese,” 41, of Gastonia. • Carroll Macarthur Williams, Jr., 34, of Kings Mountain, N.C. • Thomas Monteres Burris, 33, of Gastonia. • Larry Donnell Erby, Jr., 34, of Gastonia. • Mario Demond Floyd, 33, of Gastonia. • Tony Lamar Floyd, 45, of Gastonia. • Lance Richardson Pagan, 43, of Gastonia. • Torben Lamont Jackson, 33, of Charlotte. • James Russell “Rusty” Coulter, 34, of Gastonia.All individuals except Coulter were taken into custody this morning and made their initial appearances today in federal court in Charlotte before U.S. Magistrate Judge David S. Cayer. Coulter remains a fugitive (see attached photo).
While executing the arrest warrants and search warrants, law enforcement seized three firearms, approximately $67,000 in cash, two motorcycles, three vehicles, bullets, drugs and drug making paraphernalia.
The drug conspiracy charge against Durham and Barber carries a statutory mandatory life sentence and $20 million fine. The drug conspiracy charge against Pagan and Jackson carries a statutory minimum term of 20 years and a maximum of life in prison and a $20 million fine. And the drug conspiracy charge against the remaining defendants carries a statutory minimum term of 10 years and a maximum of life in prison and a $10 million fine.
The nine defendants’ detention hearings have been scheduled for Tuesday, September 24, 2013, before U.S. Magistrate Judge Keesler.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The investigation was handled by the FBI, HSI, SBI, the Gastonia Police Department, the Mount Holly Police Department and the Charlotte Mecklenburg Police Department. The case is being prosecuted by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
New Haven Felon Sentenced to 30 Months in Federal Prison for Possessing FirearmRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JERMAINE McGEE, 35, of New Haven, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 30 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on July 11, 2012, McGEE possessed a Bryco Arms .380 automatic handgun. Prior to July 2012, he had sustained felony convictions in New York and Connecticut.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On June 26, 2013, McGEE pleaded guilty to one count of possession of a firearm by a convicted felon.
This matter was investigated by the New Haven Police Department and Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
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