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19 November 2013
Jury Convicts San Francisco Man of AssaultRead the Press Release
OAKLAND – Yesterday, a federal jury convicted Antonio Chavez of assaulting a private security guard who was assisting a federal officer, United States Attorney Melinda Haag announced.
The jury found that on December 8, 2012, Chavez assaulted a security guard who was protecting the Ronald V. Dellums Federal Building at 1301 Clay Street in Oakland, after the guard went to investigate apparent vandalism of the building. The guilty verdict followed a 4-day jury trial before The Honorable Phyllis J. Hamilton, United States District Court Judge.
Evidence at trial showed that on December 8, 2012, at about 3 a.m., private security guards noticed on surveillance video a group of six or seven people vandalizing the guard house next to the federal building on the corner of 12th Street and Jefferson Street in Oakland. One of the guards went to the guard house to investigate the vandalism. With the exception of two people, the group dispersed as the guard approached the guard house. As the guard continued his investigation, one of the individuals who remained at the guard house attempted to grab the guard’s flashlight, and a struggle ensued. During that struggle, Chavez attacked the guard with an electric stun gun, striking the guard in the neck and chest and knocking him to the ground. Chavez later brandished and activated the stun gun while threatening the security guard. Chavez was ultimately apprehended later that night by the Oakland Police Department.
Chavez, 21, of San Francisco, was charged by criminal complaint on February 12, 2013, and was indicted by a federal grand jury on February 21, 2013. Chavez was remanded into custody following his conviction.
Chavez’s sentencing hearing is scheduled for February 26, 2014, before Judge Hamilton, in Oakland. The maximum statutory penalties for a violation of 18 U.S.C. § 111(a)(1) and (b) are a prison term of 20 years, a fine of $250,000, and 3 years of supervised release. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Brian C. Lewis and Special Assistant United States Attorney Manish Kumar prosecuted this case with the assistance of Janice Pagsanjan and Noble Hughes. This prosecution is the result of an investigation by the Federal Protective Service, the Oakland Police Department, and the Federal Bureau of Investigation.
(Chavez indictment )
Jacksonville Man Sentenced to 5 Years in Federal Prison for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan today sentenced Dwaine Charles Idleman (66, Jacksonville) to 5 years in prison for receiving child pornography over the Internet. Idleman was also ordered to serve a 5-year term of supervised release, following his incarceration, and to register as a sex offender.
According to court documents, an agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) began an undercover operation to identify persons using the Internet to receive and share child pornography. The agent identified a host computer using a particular Internet Protocol (IP) address that was sharing images of child pornography on a file sharing network. Further investigation revealed that the subscriber for this IP address was Dwaine C. Idleman, located at a residence in Jacksonville, Florida.
In June 2012, HSI agents and other law enforcement officers executed a federal search warrant at Idleman’s residence. During an interview, Idleman stated, among other things, that he had come across pornography sites with people that were too young but that he got out of it. When told that the agents knew that he was downloading child pornography files into his residence and that he was sharing it back out of the residence, Idleman stated, I know I got a problem and if this escalates into an arrest, my life is over. Idleman further stated that he would type in certain keyword searches and usually downloaded files from the file sharing program when he was alone in his home.
A subsequent forensic analysis of Idleman’s laptop computer revealed that it contained at least four images and one video depicting child pornography, along with other files containing titles indicative of child pornography. The analysis also showed that several videos were downloaded by Idleman using the file sharing program on the morning of June 28, 2012, just before the arrival of the HSI agents.
This case was investigated by ICE-HSI and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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."
Hogsett Presents United States Attorney Award to Federal, Local Law EnforcementRead the Press Release
NEW ALBANY – Joseph H. Hogsett, the United States Attorney, was in Floyd County today to acknowledge the presentation of a U.S. Attorney Award to a number of local and federal law enforcement officers. Joined by Sheriff Darrell Mills, Hogsett applauded the significant impact that federal-local collaboration has had in Southern Indiana. Those receiving awards today included: • Mark Slaughter, Task Force Officer with the Floyd County Sheriff’s Department
• Todd Combs, Washington County Drug Task Force
• Dave Mitchell, Indiana State Police
• Brendan Cryan, Drug Enforcement Administration
• Charley Scarber, Bureau of Alcohol, Tobacco, Firearms and Explosives
• John O’Boyle, Bureau of Alcohol, Tobacco, Firearms and Explosives
• Jan DeLancey, Internal Revenue Service
• William Birkofer, U.S. Department of Homeland SecurityThese individuals are being recognized for their roles in the investigation and prosecution of the Hermion Torres and Freddie Joe Taylor drug and gun trafficking organizations, which were responsible for the import and distribution of large amounts of marijuana, cocaine and methamphetamine throughout Southern Indiana and Kentucky. The investigation ultimately revealed a network of gun straw purchasers who obtained firearms for Torres in Indiana, which were later traded to the Mexico-based Gulf Cartel, an international criminal organization.
Hogsett said that these federal and state law enforcement partners used a variety of investigative techniques to bring those behind the criminal organizations to justice. As a result of these prosecutions, the flow of drugs and guns into Indiana was halted.
"The work of these officers and agents on this case is an example of law enforcement at its best," Hogsett said. "This was a complicated case with many moving parts, but the selfless dedication and tireless work of our partners in Southern Indiana helped ensure that these criminals won’t terrorize this area ever again."
The United States Attorney Award was established in 2003 to recognize outstanding law enforcement work in Hoosier communities as part of federal investigations and prosecutions. Just twenty total awards were awarded in 2013, and the Floyd County and Washington County Sheriff's Departments were two of only six local law enforcement agencies to be recognized.
Hogsett Presents Floyd County Law Enforcement with Grant of More Than $12,000Read the Press Release
NEW ALBANY – Joseph H. Hogsett, the United States Attorney, presented Floyd County law enforcement with a check for $12,011 this morning as part of the Edward Byrne Memorial Justice Assistance Grant Program. The award was accepted by Floyd County Sheriff Darrell Mills.
"Law enforcement here in Floyd County and across the state is tireless in their work to keep the Southern Indiana area safe and secure," Hogsett said. "But in these tight fiscal times, we should all welcome any opportunity to return federal dollars back in this community to make these efforts even stronger."
Hogsett said the Edward Byrne Memorial Justice Assistance Grant is a federal program designed to support local law enforcement programs across the country. Administered by the Department of Justice, the Byrne Grants are intended to be flexible enough to allow municipalities to prevent and control crime based on their local needs and conditions. Among other things, grant funds can be used for new initiatives, technical assistance, training, personnel, equipment, supplies, and many other purposes.
"Combating drug trafficking and violent crime is a team sport, and it takes all of us working together to be successful," Hogsett added. "I am happy to be in New Albany to present this award today, and I look forward to continuing our collaborative work toward a safer city, a safer county, and a safer state."
Hogsett Presents City of Jeffersonville with A Law Enforcement Grant of More Than $40,000Read the Press Release
JEFFERSONVILLE – Joseph H. Hogsett, the United States Attorney, presented City of Jeffersonville law enforcement with a check for $40,257 this morning as part of the Edward Byrne Memorial Justice Assistance Grant Program. The award was accepted by Jeffersonville Mayor Mike Moore and Police Chief Chris Grimm.
"Your law enforcement officers here in Jeffersonville are tireless in their work to keep the Southern Indiana area safe and secure," Hogsett said. "But in these tight fiscal times, we should all welcome any opportunity to return federal dollars back in this community to make these efforts even stronger."
Hogsett said the Edward Byrne Memorial Justice Assistance Grant is a federal program designed to support local law enforcement programs across the country. Administered by the Department of Justice, the Byrne Grants are intended to be flexible enough to allow municipalities to prevent and control crime based on their local needs and conditions. Among other things, grant funds can be used for new initiatives, technical assistance, training, personnel, equipment, supplies, and many other purposes.
"Combating drug trafficking and violent crime is a team sport, and it takes all of us working together to be successful," Hogsett added. "I am happy to be in Jeffersonville to present this award today, and I look forward to continuing our collaborative work toward a safer city, a safer county, and a safer state."
FreshPoint Inc. to Pay $4.2 Million for Overbilling the Department of Defense for ProduceRead the Press Release
The Justice Department announced today that FreshPoint Inc., a Houston, Texas-based food distribution company and wholly owned subsidiary of Sysco Corp., has agreed to pay $4.2 million to resolve allegations that it overcharged the Department of Defense for fresh fruit and vegetables purchased under 15 separate contracts. The contracts were awarded to East Coast Fruit Company and subsequently performed by FreshPoint following FreshPoint’s acquisition of East Coast Fruit Company in 2007.
“The Department of Justice is committed to ensuring the integrity of federal contracts and will pursue contractors that knowingly overcharge the government for goods or services,” said Assistant Attorney General for the Department of Justice’s Civil Division Stuart F. Delery. “Contractors that do business with the government must do so honestly and fairly or suffer the consequences of their misconduct.”
“This settlement demonstrates one of the many types of fraud inflicted upon the American taxpayers,” said U.S. Attorney for the Southern District of Georgia Edward Tarver. “The U.S. Attorney’s Office will honor our commitment to vigorously enforce the False Claims Act in order to protect the financial soundness of our nation and its military.”
The settlement resolves allegations that from Dec. 17, 2007, through Sept. 11, 2009, FreshPoint overcharged the government on hundreds of sales of fresh fruit and vegetables by improperly inflating its prices to the government to reflect FreshPoint’s view of the prevailing market price of the goods at the time of sale. The government alleged that this practice violated FreshPoint’s contracts with the government that required FreshPoint to provide the produce at cost, plus a pre-established mark-up for profit, and did not allow FreshPoint to make additional price adjustments based upon perceived changes in market prices.
The allegations arose from a lawsuit filed under the whistleblower provisions of the False Claims Act, which allow private individuals to sue on behalf of the government and to share in the proceeds of any settlement or judgment. The whistleblower in this case, former FreshPoint employee Charles Hall, will receive $798,000.This settlement was the result of a coordinated effort by the Justice Department’s Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the Southern District of Georgia; the Defense Criminal Investigative Service; the Defense Contract Audit Agency and the Defense Logistics Agency Office of General Counsel. The claims settled by this agreement are allegations only, and there has been no determination of liability. The case is captioned U.S. ex rel. Hall v. SYSCO Corp., et al., Case No: 4:11-CV-57 (S.D. Ga.).
Fourteen Charged with Kilogram-Quantity Heroin Trafficking in City of MiddletownRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Ramon Bethencourt Jr., the Chief of the City of Middletown Police Department, and Joseph A. D’Amico, the Superintendent of the New York State Police, announced the arrest of 14 defendants and the unsealing of an Indictment charging a conspiracy to distribute kilogram quantities of heroin in and around Middletown, New York.
U.S. Attorney Preet Bharara stated: “This case is yet another example of this Office’s unrelenting efforts at purging the Hudson Valley of alleged violent drug trafficking gangs through the coordinated efforts of the FBI and our state and local law enforcement partners.”
FBI Assistant Director-in-Charge George Venizelos stated: “The arrests today target individuals who allegedly were involved in moving heroin into Middletown. These types of crimes are all too common in this area and the FBI’s Safe Streets Taskforce will continue to work with our partners to eradicate violent gangs and drugs in our communities.”
Middletown Police Department Chief Ramon Bethencourt Jr. stated: “Along with Mayor DeStefano, I want to praise the work of all of the law enforcement agencies involved. Once again our commitment to working together will have a positive influence on the quality of life for our residents. By ridding our streets of these drugs we are reducing the violent crimes that go along with them, making the City of Middletown a safer community.”
New York State Police Superintendent Joseph A. D’Amico stated: “A significant amount of heroin will not make it onto the streets of Middletown as a result of the dedication and due diligence of local, state and federal investigators and prosecutors working collaboratively to put a stop to these types of drug operations. It is through this cooperative effort among our partners in law enforcement that we will continue to target, and remove from our streets those who choose to engage in this type of illegal and dangerous activity. I thank all of the members of this team for their hard work and dedication to the citizens of New York.”
According to allegations in the Indictment unsealed in White Plains federal court today:
Fourteen people, MIGUEL MARGOLLA, 29, JESUS IRIZARRY NEGRON, a/k/a/ “Pablo,” 22, MARIO MARGOLLA, 32, ROBERTO MARGOLLA, 22, CARLOS MARTINEZ, a/k/a “B-Way,” 33, SHARLIM OMAR MORALES, a/k/a “Moreno,” 32, RICARDO RAMOS-MENDEZ, a/k/a “Keeke,” a/k/a “Brian,” 23, TEDDY RIVERA, a/k/a “Teddy Guns,” a/k/a “TG,” 20, CHRISTINA RODRIGUEZ, 23, JOHNATHAN RODRIGUEZ, a/k/a “J-Whispers,” a/k/a “Bigz,” 26, MANUEL SANTIAGO, 28, JESSICA SLOCUM, 24, ALEX TORRES, a/k/a “Broccoli,” a/k/a “Broc,” 28, and CHRISTIAN VERA MALDONADO, 22, are charged with conspiring to distribute, and possess with intent to distribute, kilogram quantities of heroin. As the Indictment describes, the defendants operated a large-scale heroin trafficking organization that distributed heroin throughout Middletown, New York since at least 2007. As further alleged, during the investigation, the defendants unwittingly sold heroin to confidential informants and an agent in an undercover capacity. As further alleged, one member of the conspiracy also discussed the possible murder of two individuals in or around Middletown.
The charge against each defendant and the corresponding maximum potential penalties are outlined in the chart attached to this press release.
All of the defendants charged in the Indictment were arrested last night or today, or have previously been taken into custody. Twelve of the defendants are to be presented in White Plains federal court this afternoon before U.S. Magistrate Judge Lisa Margaret Smith. One defendant is to be presented in the United States District Court for the District of New Hampshire, and one defendant is to be presented in the United States District Court for the District of Puerto Rico.
Mr. Bharara praised the outstanding investigative work of the FBI, the City of Middletown Police Department, the New York State Police, the Orange County Sheriff’s Department, the Town of Wallkill Police Department, and the Town of Ramapo Police Department. Mr. Bharara also thanked the Orange County District Attorney’s Office for its invaluable coordination and continuing support.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Michael Gerber is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Founder and Leader of Newburgh Latin Kings Sentenced to Life Plus 85 Years in Prison for Murder, Racketeering, Drug Distribution, and Other CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that WILSON PAGAN, 27, the founder and top leader of the Latin Kings gang in Newburgh, New York (the “Newburgh Latin Kings”), was sentenced today by U.S. District Judge Cathy Seibel in White Plains federal court to life plus 85 years in prison. PAGAN was convicted of murder; racketeering; conspiracy to distribute crack, cocaine, and heroin; assault, and using and carrying firearms in connection with violent crimes. PAGAN is one of 35 members and associates of the gang who were charged in the case, all of whom have been convicted, 28 of whom have thus far been sentenced.
U.S. Attorney Preet Bharara stated: “Mr. Pagan was a gang leader, and what he led his followers to was a gang member’s life filled with death, blood, guns, drugs, and jail – and for him the gangster life in the street has become the inmate’s life in prison, forever. Gang leaders, members, associates, and wannabes in Newburgh and throughout the Hudson Valley need to understand: We will not tolerate gang violence. You will go to prison for it, potentially for the rest of your life.”
According to the Indictment and evidence presented at trial:
PAGAN founded the Newburgh Latin Kings, and grew the gang from roughly a dozen members in 2008 to more than 50 members and associates by early 2010. On May 6, 2008, PAGAN ordered aspiring gang members to go on a so-called mission, during which they committed a drive-by shooting and killed, mistakenly, Jeffrey Zachary, a 15-year old boy who was an innocent bystander. PAGAN sold crack and heroin, and helped other members and associates of his gang sell drugs, including at spots the Latin Kings controlled, such as the corner of Benkard Avenue and William Street in Newburgh. PAGAN also assaulted rivals of his gang, and carried guns and instructed others to carry guns to protect PAGAN and the Newburgh Latin Kings’ drug turf. In leading the gang, PAGAN recruited and inducted new members, instructed the members how to behave in order to protect and conceal the gang’s criminal activities, and issued orders to gang members to shoot and assault others. PAGAN organized and led gang meetings for this purpose. During one such meeting, according to papers filed with the court, PAGAN told more than 20 assembled gang members: “[W]e don’t even live by rules of society. . . .”
Mr. Bharara thanked the Hudson Valley Safe Streets Task Force for their work on the Latin Kings investigation. The Task Force is led by the Federal Bureau of Investigation (“FBI”), and combines the resources of dozens of law enforcement officers from federal, state, and local agencies and departments, including: agents and officers of the FBI; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the City of Newburgh Police Department; the U.S. Department of Homeland Security, Homeland Security Investigations; the Middletown Police Department; the Orange County Sheriff’s Office, and the New York State Police.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Benjamin Allee, Abigail Kurland, and Nicholas McQuaid are in charge of the prosecution.
Former Vickburg Mayor Sentenced to Prison for BriberyRead the Press Release
Natchez, Miss – Paul Winfield, former mayor of Vicksburg, Mississippi, was sentenced in U.S. District Court today to 25 months in federal prison followed by three years of supervised release for bribery in connection with a pre-event disaster contract for the city of Vicksburg, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen. Winfield was also ordered to pay a $5,000 fine and forfeit $7,000, the amount paid to him as a bribe.
In early 2012, while serving as the mayor of Vicksburg, Winfield met with a Federal Bureau of Investigation (“FBI”) source, where they discussed pre-event disaster contracts for the city of Vicksburg. On July 18, 2012, Winfield again met with the FBI source at a restaurant in Jackson. After dinner, Winfield and the FBI source met inside the source’s vehicle and the FBI source asked Winfield what would need to be done in order for the source’s company to get the pre-event disaster contract. Winfield responded “Ten” and held up ten fingers, signifying $10,000. The FBI source asked Winfield if the FBI source could pay $5,000 now and $5,000 once the contract was awarded. Winfield agreed and the FBI source paid Winfield $5,000 cash in the vehicle at that time.
On August 17, 2012, the FBI source met with Winfield in Natchez, Mississippi, where he paid Winfield an additional $2,000 in cash and asked if another $3,000 would be enough. The source then promised Winfield another $3,000 after the pre-event disaster contract was awarded.
As part of his plea agreement, Winfield agreed to forfeit the bribe money he accepted and he also agreed to neither run for elected public office nor apply for or be employed by any governmental entity in the future.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Mike Hurst.###
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You can also fax information to:
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or e-mail it to:
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Former Chairman of Mashantucket Pequot Tribal Nation Sentenced to 18 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that MICHAEL THOMAS, 45, the former Chairman of the Mashantucket Pequot Tribal Council, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 18 months of imprisonment, followed by three years of supervised release, for embezzling from the Mashantucket Pequot Tribal Nation.
On July 24, 2013, a jury found THOMAS guilty of one count of theft from an Indian tribal organization and two counts of theft from an Indian tribal government receiving federal funds.
“Mr. Thomas’s embezzlement of more than $100,000 was not only an abuse of his position as Chairman of the Mashantucket Pequot Tribal Nation, but also a theft of federal funds,” stated Acting U.S. Attorney Daly. “The U.S. Attorney’s Office is committed to prosecuting corrupt officials at all levels of government – federal, state, local and tribal – and I commend the FBI and Department of the Interior’s Office of Inspector General for their diligent investigation of this matter.”
“Today’s sentence is especially important because it holds Mr. Thomas accountable for stealing federal dollars to support a lifestyle which he could have legitimately afforded on his own,” stated FBI Special Agent in Charge Ferrick. “During these particularly severe fiscal times, Mr. Thomas’ abuse of position and unauthorized use of tribal money were done with a sense of entitlement and without ambiguity. The FBI is most appreciative of the efforts of the United States Attorney’s Office and the Department of the Interior’s Office of Inspector General for working with us to investigate and prosecute the corruption of public officials at all levels.”
According to the evidence at trial, between October 2007 and April 2009, THOMAS used an American Express card that was issued to him by the Mashantucket Pequot Tribal Nation (“MPTN”) for official MPTN government purposes to charge more than $100,000 in unauthorized personal expenses. THOMAS used the card to pay for monthly satellite television service for his home, satellite radio service for his vehicle, mobile phone service for other individuals, car service to transport his mother to kidney dialysis treatments and the purchase of personal computers. THOMAS knew that the expenses were personal, and that his use of the credit card was in violation of a Tribal Council Resolution.
Judge Arterton will issue a restitution order after further court proceedings.
This matter was investigated by the Federal Bureau of Investigation and U.S. Department of the Interior – Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys Christopher Mattei and Douglas Morabito.
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(203) 821-3722 [email protected]Former Animal Planet Television Network Host Pleads Guilty to Federal Charge of Selling Endangered WildlifeRead the Press Release
LOS ANGELES -- Donald Schultz, the former host of Animal Planet’s “Wild Recon” television show, pleaded guilty today in federal court to one count of violating the Endangered Species Act for selling two desert monitor lizards (Varanus griseus).
Schultz, 35, of Playa Vista, admitted in court that on July 29, 2010, he sold the two live desert monitor lizards to an undercover agent with the U.S. Fish and Wildlife Service who was posing as a prospective buyer. After meeting with the undercover agent at his residence to finalize the deal, Schultz agreed to ship the two live desert monitors from Los Angeles to Buffalo, New York, via airplane A federal agent then received the monitors in New York and took them into custody.
Schultz had never been issued a permit to sell the two lizards. Desert monitor lizards are listed as endangered under the Endangered Species Act.
Schultz is scheduled to be sentenced by United States Magistrate Judge Victor B. Kenton on January 28.
Pursuant to the plea agreement, Schultz has agreed to serve two years of probation, pay a $6,000 fine, pay restitution of $3,000, and perform 200 hours of community service.
This case was investigated by the U.S. Fish and Wildlife Service.
Release No. 13-132
Farmers Branch Man Pleads Guilty to Bank Robbery ChargesRead the Press Release
FBI Says Luis de la Garza was the “Mesh Mask Bandit”
DALLAS — Luis de la Garza, 59, of Farmers Branch, Texas, appeared this morning before U.S. Magistrate Judge Irma C. Ramirez and pleaded guilty to a superseding information charging five counts of bank robbery, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea papers filed, de la Garza not only admits committing the five below-listed bank robberies, he stipulates that he committed an additional 13 bank robberies and an additional two attempted bank robberies in the Dallas – Fort Worth metroplex between April 2010 and May 2013.
March 18, 2013 Chase Bank 6300 Harry Hines Blvd.
Dallas, Texas
April 5, 2013 Grand Prairie State Bank 2317 South Belt Line Rd.
Grand Prairie, Texas
April 22, 2013 Wells Fargo Bank 13297 Josey Lane
Farmers Branch, Texas
April 29, 2013 Capital One Bank 200 North Mesquite Street, Suite 121
Arlington, Texas
May 15, 2013 Chase Bank 111 South Garland Ave., Suite 150
Garland, TexasIn each of these five bank robberies, de la Garza wore long-sleeved clothing, a mesh mask, cap and gloves to disguise his identity, and in each robbery he brandished and used a BB pistol. In each of the robberies, the tellers were in fear for their lives. During the last robbery, on May 15, 2013, a bank customer grabbed de la Garza’s pistol and struck him in the head. While a struggle then ensued between de la Garza and a bank employee, de la Garza broke free and fled from the bank, leaving behind his pistol, which Garland Police Department determined was a CO2 BB gun.
De la Garza faces a maximum statutory penalty of 25 years in federal prison and a $250,000 fine for each of the five counts of conviction. In addition, according to the terms of his plea, he will pay a total of $145,947 in restitution. Sentencing is set for February 27, 2014, before U.S. District Judge Jane J. Boyle.
The investigation was conducted by the FBI, Dallas Police Department, Grand Prairie Police Department, Farmers Branch Police Department, Arlington Police Department, Garland Police Department, Carrollton Police Department, Addison Police Department, Lewisville Police Department and Plano Police Department. Assistant U.S. Attorney Keith Robinson is in charge of the prosecution.
Eastern Idaho Man Pleads Guilty to Federal Drug ChargeRead the Press Release
POCATELLO – Sammy Joe Aguirre, 26, of Idaho Falls, Idaho, pleaded guilty today in United States District Court to possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, on March 21, 2013, law enforcement officers observed Aguirre traveling from Idaho Falls to Rupert, Idaho, where he obtained approximately one pound of methamphetamine. While transporting the methamphetamine back to eastern Idaho, Aguirre’s vehicle was stopped, he was arrested and law enforcement seized the methamphetamine. Aguirre admitted in court that he obtained the methamphetamine with the intention of distributing it to others.
Aguirre is scheduled to be sentenced on January 29, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
Aguirre’s co-defendant, Emilio Martinez, 31, of Rigby, Idaho, pleaded guilty on October 16, 2013, to possession with intent to distribute methamphetamine. According to the plea agreement, on February 26, 2013, during execution of a search warrant at a residence in Bonneville County, officers found Martinez in possession of methamphetamine and paraphernalia. He is scheduled to be sentenced on January 3, 2014.
Aguirre and Martinez face up to 20 years in prison, a maximum fine of $1 million, and at least three years of supervised release.
The case is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Idaho State Police, with assistance from the Idaho Falls Police Department and Bonneville County Sheriff’s Office. Other federal agencies participating in the OCEDTF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation (IRS-CI), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and U.S. Marshals Service.
The OCDETF program is a federal, multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Devils Lake Man Pleads Guilty to Abusive Sexual Contact at Spirit LakeRead the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on Nov. 19, 2013, Erick McKay of Devils Lake, N.D., pleaded guilty before U.S. District Judge Ralph R. Erickson to two counts of abusive sexual contact.
McKay pleaded guilty to causing a female child, who had not attained 12 years of age, to have sexual contact with him by the use of threat and force against her.
The incidents occurred between April 2011 and June 2012 on the Spirit Lake Indian Reservation.
Each charge carries a maximum penalty of life imprisonment.
The case was investigated by the Federal Bureau of Investigation.
Sentencing for McKay has been set for Feb. 10, 2014, at 11:00 a.m.
Assistant U.S. Attorney Janice M. Morley is prosecuting the case.
Delaware Woman Pleads Guilty to $940,000+ Tax Fraud and Identity Theft SchemeRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Dawn Chamberlain, age 36, of Claymont, Delaware, pled guilty today to violations of 18 USC § 286 (False Claims Conspiracy) and 18 USC § 1341 (Mail Fraud). Chamberlain, who will be sentenced on April 3, 2013, by the Honorable Leonard P. Stark, United States District Judge for the District of Delaware, faces a maximum sentence of twenty years in prison, a fine of $250,000, and 3 years of supervised release.
According to statements made at the plea hearing and documents filed in court, the defendant acted as a tax preparer in Delaware. From 2009 through 2012, she filed more than 450 false and fraudulent U.S. Individual Federal Income Tax Returns for other people. In the returns, the defendant claimed more than $730,000 in credits to which her clients were not entitled, including the American Opportunity Tax Credit and the Earned Income Tax Credit.
The defendant directed the taxing authorities to deposit the refunds generated by the fraudulent federal income tax returns into her own bank accounts, and bank accounts of her family members. She returned less than the full amount of the refunds to her clients, converting the remaining proceeds to her personal use.
The defendant also used her client’s names, dates of birth, and social security numbers to file false and fraudulent New York State Resident income tax returns, requesting refunds of more than $210,000.
U.S. Attorney Oberly gave the following comments: “This case should send a clear signal that individuals who file false claims against the United States Treasury will be prosecuted. I find fraud upon the government to be particularly troubling, and I am committed to working with the Internal Revenue Service to prosecute these cases and seek incarceration wherever possible.”
This case is the result of an investigation conducted by the Internal Revenue Service, the United States Postal Inspection Service, and the Social Security Administration, Office of the Inspector General, with the investigative assistance and cooperation of the State of New York. The prosecution is being handled by Assistant United States Attorney Lauren Paxton, District of Delaware.Dearborn-Based Business Owner and Former AttorneySentenced to Prison for Bank FraudRead the Press Release
The owner of a Dearborn, Michigan, based real estate company was sentenced to 110 months in prison, and a former Dearborn attorney was sentenced to 48 months in prison following their convictions for bank fraud and commercial bribery, announced United States Attorney Barbara L. McQuade.
Making the announcement along with U.S. Attorney McQuade were Paul M. Abbate, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, and Giovanni Tiano, Special Agent in Charge of the Dearborn office of the Department of Homeland Security - Office of Inspector General, and Jeffrey Frost, Special Agent in Charge of the Detroit office of the U.S. Secret Service.
Defendant, Hussein “Sam” Nazzal, 60, of Dearborn, and the owner of the of G & S Development real estate investment firm, was sentenced to serve 110 months in federal prison following his conviction at trial for bank fraud, bribery of a bank officer and obstruction of justice. Nazzal was also order to pay $2.9 million in restitution to his victims.
Defendant Edward A. Schneider, 60, of Dearborn, the former principal in the law firm Edward Schneider, P.C. was sentenced to serve 48 months in prison following his conviction at trial for bank fraud and bribery of a bank officer. Schneider was also ordered to pay more than $2.7 million in restitution to his victims.
Both defendants were sentenced before the Honorable David M. Lawson of the U.S. District Court for the Eastern District of Michigan.
As part of the same prosecution, four additional defendants were previously sentenced to terms ranging from two years of probation to 40 months in prison. One defendant faces deportation to Lebanon on his release from the Bureau of Prisons.
In announcing the two sentences, McQuade stated, ABank fraud offenses harm all of us by shifting costs to consumers and by making it harder for legitimate borrowers to obtain loans.”Special Agent in Charge Abbate stated, "These types of crimes target our financial institutions, the integrity of which is critical for our communities. The FBI Detroit Division, in concert with our law enforcement partners, will continue to aggressively pursue those who fraudulently enrich themselves at the expense of us all."
Special Agent in Charge Tianno stated, “The DHS-OIG is very pleased by the successful outcome of this investigation and will continue to be committed to working with our law enforcement partners to aggressively pursue those who selfishly engage in the corruption of our financial institutions, which ultimately results in the weakening of our nation’s economy.”
Special Agent in Charge Frost stated, “The consequences of financial crimes perpetrated against individuals and organizations are far-reaching and long-lasting. The Secret Service believes that building trusted partnerships between all levels of law enforcement has been a proven and successful model for facing the challenges of criminal activity. It is through our collaborative approach with established partnerships that the Secret Service plays a critical role in detecting, investigating and mitigating the effects of financial crimes.”
This case was investigated by the Federal Bureau of Investigation, the Department of Homeland Security - Office of Inspector General and the United States Secret Service.
Clarkston Man Sentenced to Fifteen Years in Federal Prison for Attempted Production of Child PornographyRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Christopher A. Knox, age 50, of Clarkston, Washington, was sentenced after having previously pleaded guilty on July 23, 2013 to Attempted Production of Child Pornography. United States District Court Judge Edward F. Shea sentenced Knox to a fifteen year term of imprisonment, to be followed by a life term of court supervision after he is released from Federal prison.
According to information disclosed during the court proceedings, in March of 2010, the Federal Bureau of Investigation and Grant County Sherriff's Office conducted an investigation of a mother using her children to produce images of child pornography. The mother, Pamela Ortega, plead guilty to three counts of Rape of a Minor and was sentenced in Washington State to 300 months imprisonment. As a result of the investigation into Ortega, law enforcement determined that one of the individuals she was communicating with about producing child pornography images was Christopher A. Knox. On March 30, 2011, the FBI executed a search warrant at Knox's residence and ultimately located a laptop computer that contained images of child pornography.
Michael C. Ormsby said, "Prosecuting offenders who are not only collecting child pornography, but also attempting to produce child pornography images is a priority of the United States Attorney's Office in the Eastern District of Washington. This Office, together with its Federal and state law enforcement partners, is and will continue to be committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes."
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative ("PSC") has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue child victims;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources".
This investigation was conducted the Federal Bureau of Investigation and Grant County Sherriff's Office. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
CR-13-6004-EFS
Cheektowaga Man Convicted of Gun ChargeRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jose Gonzalez, 37, of Cheektowaga, N.Y., was convicted of possession of a short-barrel shotgun following a jury trial before U.S. District Judge William M. Skretny. Gonzalez faces a maximum 10 years in prison, a $10,000 fine or both.
According to Assistant U.S. Attorneys Eric M. Opanga and Joseph M. Tripi, who handled the prosecution of the case, the defendant was driving his girlfriend’s car, which she reported to police had been stolen. Gonzalez and co-defendant Luis Osorio were stopped by Buffalo Police on Carolina St. because officers who were following the vehicle believed the defendants were attempting to evade police. During a subsequent search of the vehicle, officers discovered a defaced short-barrel shotgun behind the driver seat.
The defendant was acquitted on a charge of possession of a defaced firearm. The jury was unable to reach a verdict on charges of felon in possession of a firearm and possession of an unregistered short-barrel shotgun.
Gonzalez and Osorio were arrested on December 14, 2011. Osorio is scheduled to go to trial on December 3, 2013.
The conviction is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for February 5, 2014 at 9:00 a.m. before Judge Skretnty.Charleston Man with More Than $20,000 Cash, Half-kilo of Cocaine Sentenced to Nearly 4 Years in Federal PrisonRead the Press Release
CHARLESTON, W.Va. – A thirty-five-year-old man who possessed a total of more than $20,000 in cash and nearly a half-kilogram of cocaine inside of his Charleston residence was sentenced today to 46 months in federal prison, announced U.S. Attorney Booth Goodwin. Jason McGhee, 35, previously pleaded guilty in July to possession with intent to distribute cocaine. On April 24, 2013, a confidential informant working with the Metropolitan Drug Enforcement Network Team (MDENT) arranged to purchase cocaine from McGhee. The police informant later arrived at McGhee’s residence and gave the defendant $2400 in pre-recorded buy money to fulfill a previous drug debt. A short time later, McGhee handed the informant five ounces of suspected cocaine. The informant later turned the suspected cocaine over to law enforcement agents. The suspected cocaine was tested by police and proved to be 146 grams of cocaine.
Following the controlled drug transaction between McGhee and the informant, police executed a search warrant on the defendant’s residence. During the search of the residence, police found $2400 in pre-recorded currency that was used as part of a previous controlled drug transaction, an additional $17,800 in cash, two sets of digital scales and approximately 499 grams of cocaine.In total, McGhee is responsible for distributing a total of at least two kilograms but less than 3.5 kilograms of cocaine in and around Charleston.
The investigation was conducted by MDENT and the Drug Enforcement Administration. Assistant United States Attorney Monica D. Coleman handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston in Charleston.
Chamberlain Man Charged with Access Device Fraud and LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Chamberlain, South Dakota, man has been indicted by a federal grand jury.
Warren LaRoche, age 23, was indicted on November 14, 2013, for Access Device Fraud and Larceny. LaRoche appeared before U.S. Magistrate Judge Mark A. Moreno on November 18, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 15 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, an additional 2 years of supervised release upon revocation, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and LaRoche is presumed innocent until and unless proven guilty.
The Indictment alleges that between December 3, 2012, and April 16, 2013, LaRoche stole a credit card number and made unauthorized purchases in excess of $1,000.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
LaRoche was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Cabot Corporation Agrees to Spend over $84 Million to Control Harmful Air Pollution at Louisiana and Texas FacilitiesRead the Press Release
Boston-based Cabot Corporation, the second largest carbon black manufacturer in the United States, has agreed to pay a $975,000 civil penalty and spend an estimated $84 million on state of the art technology to control harmful air pollution, resolving alleged violations of the New Source Review (NSR) provisions of the Clean Air Act (CAA) at its three facilities in the towns of Franklin and Ville Platte, La., and Pampa, Texas, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today. This agreement is the first to result from a national enforcement initiative aimed at bringing carbon black manufacturers into compliance with the CAA’s NSR provisions.
The state of Louisiana Department of Environmental Quality is a co-plaintiff in the case and will receive $292,500 of the penalty.
“By agreeing to pay an appropriate penalty and install state of the art technology to control harmful air pollution, Cabot Corp. is taking a positive step forward to address these alleged violations of the Clean Air Act,” said Acting Assistant Attorney General Robert G. Dreher of the Justice Department’s Environment and Natural Resources Division. “This agreement will serve as a model for how the industry can come into compliance with the Clean Air Act by installing controls that prevent harmful pollution and improve air quality for surrounding communities.”
“With today’s commitment to invest in pollution controls, Cabot has raised the industry standard for environmental protection,” said Assistant Administrator Cynthia Giles of EPA’s Office of Enforcement and Compliance Assurance. “These upgrades will have lasting, tangible impacts on improved respiratory health for local communities. We expect others in the industry to take notice and realize their obligation to protect the communities in which they operate.”
“This is a huge win for the citizens of our district,” said U.S. Attorney Stephanie A. Finley. “These harmful pollutants can cause serious, long term respiratory harm. The United States Attorney’s Office is committed to the enforcement of the environmental laws and protection of the community. This settlement promotes a healthier environment and an opportunity to allow the residents of the district to breathe cleaner air.”
At all three facilities, the settlement requires that Cabot optimize existing controls for particulate matter or soot, operate an “early warning” detection system that will alert facility operators to any particulate matter releases, and comply with a plan to control “fugitive emissions” which result from leaks or unintended releases of gases. To address nitrogen oxide (NOx) pollution, Cabot must install selective catalytic reduction technology to significantly reduce emissions, install continuous monitoring, and comply with stringent limits. At the two larger facilities in Louisiana, Cabot must address sulfur dioxide (SO2) pollution by installing wet gas scrubbers to control emissions, install continuous monitoring, and comply with stringent emissions limits. In addition, the Texas facility is required to comply with a limit on the amount of sulfur in feedstock that is the lowest for any carbon black plant in the United States.
These measures are expected to reduce NOx emissions by approximately 1,975 tons per year, SO2 emissions by approximately 12,380 tons per year, and significantly improve existing particulate matter controls. Exposure to NOx emissions can cause severe respiratory problems and contribute to childhood asthma. SO2 and NOx can be converted to fine particulate matter once released in the air. Fine particulates can be breathed in and lodged deep in the lungs, leading to a variety of health problems and even premature death. The harmful health and environmental impacts from these pollutants can occur near the facilities as well as in communities far downwind from the plants.
In the complaint filed by DOJ on behalf of EPA, the government alleged that, between 2003 and 2009, Cabot made major modifications at its carbon black facilities without obtaining pre-construction permits and without installing and operating required pollution technology. The complaint further alleges that these actions resulted in increased emissions of NOx and SO2, violating CAA requirements stating that companies must obtain the necessary permits prior to making modifications at a facility and must install and operate required pollution control equipment if those modifications will result in increases of certain pollutants.
Today’s action also requires that Cabot spend $450,000 on energy saving and pollution reduction projects that will benefit the communities surrounding the facilities in Franklin and Ville Platte, La., and in Pampa, Texas, such as upgrading air handling units at municipal buildings in the three communities to more efficient technology.
Carbon black is a fine carbonaceous powder used as a structural support medium in tires and as a pigment in a variety of products such as plastic, rubber, inkjet toner and cosmetics. It is produced by burning oil in a low oxygen environment; the oil is transformed into soot (carbon black), which is collected in a baghouse. Because the oil used in the process is low value high sulfur oil, the manufacturing process creates significant amounts of SO2 and NOx, as well as particulate matter.
This settlement is part of EPA’s national enforcement initiative to control harmful air pollution from the largest sources of emissions. Since 2010, EPA has been focusing enforcement efforts on reducing emissions at carbon manufacturing plants in the United States. Currently, none of the 15 carbon black manufacturing plants located in the United States have controls on emissions of SO2 and NOx or have continuous emissions monitors.
Cabot Corporation manufactures global specialty chemicals and performance materials, which include rubber additives for tires and brake pads, activated carbon for air purifiers, chemicals used in the manufacture of lithium-ion batteries, and inkjet colorants.
The proposed consent decree will be lodged with the U.S. District Court for the Western District Court for Louisiana and will be subject to a 45-day public comment period. The company is required to pay the penalty within 30 days after the court approves the settlement. The proposed consent decree can be viewed online at www.justice.gov/enrd/Consent_Decrees.html
More information about the settlement:
www2.epa.gov/enforcement/cabot-corporation-clean-air-act-settlement
More information about EPA’s national enforcement initiative: www.epa.gov/compliance/data/planning/initiatives/2011airpollution.html
Buffalo Grandmother who Headed Family Drug Organization Sentenced on Drug Conspiracy ChargesRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Theresa Anderson, 57, of Buffalo, N.Y. who was convicted of conspiracy to distribute and distribution of crack cocaine, was sentenced to 188 months in prison by U.S. District Court Judge, Richard J. Arcara.
Assistant U.S. Attorney Melissa Marangola, who handled the case, stated that between 2000 and February 2012, Anderson headed an illegal narcotics drug trafficking organization that controlled drug sales on Swinburne and Deshler Streets in the City of Buffalo. The defendant employed several family members to sell crack cocaine on a daily basis in the neighborhood. In order to monopolize narcotics sales in the area, the defendant threatened and intimidated rival narcotics traffickers and even purchased several homes in the area which were used for selling and storing the illegal narcotics.
“This defendant not only destroyed her own family by leading them into a life of illegal narcotics trafficking, she also damaged the neighborhood where the drug trafficking took place,” said U.S. Attorney Hochul. "Together with our law enforcement partners, we will continue our efforts to make Buffalo and its neighborhoods a safer place to live.”As part of this case, the Government seized over $50,000 in U.S. Currency and approximately nine houses used by the drug organization.
Anderson was arrested in February 2012 along with eight others: Steven Butler; Dion Anderson; Melvin Calhoun; Anquensha Hodge, a/k/a Anne Anderson; Wymiko Anderson, a/k/a Red; Toshia Hodge, a/k/a Toshia Anderson; Tajia Anderson, a/k/a Porkchop; and Leo Mellerson; all of Buffalo. Five of these are either children or grandchildren of Anderson. A sixth defendant is Anderson's husband and the two others are boyfriends of Andersons' daughters. All nine have been convicted.
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the New York State Police, Special Investigations Unit, under the direction of Major Thomas G. Marmion.Appeals Court Affirms Sentence for Olson’s Wire Fraud OffenseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that the Third Circuit Court of Appeals Monday affirmed the 65-month prison sentence imposed by Senior U.S. District Court Judge James M. Munley on Jeffrey Olson for his scheme to defraud investors of $2.8 million and for violating conditions of his supervised release.
According to United States Attorney Peter J. Smith, Olson, age 51, who resided in Pocono Lake during the time of the offense, previously pleaded guilty to wire fraud in connection with soliciting investments in a business called Northco Investments between 2008 and 2011. Olson was sentenced to prison in February 2013.
Olson was charged in May 2011, as a result of an investigation by the Federal Bureau of Investigation.
In his appeal, Olson challenged the validity of his guilty plea; claimed that the government promised him a lesser sentence; and argued that consecutive sentences for the wire fraud offense and his supervised release violation were unreasonable. The Third Circuit Court rejected each of those claims and noted that Judge Munley’s sentence was “premised upon appropriate and judicious consideration of the relevant factors.”
Assistant United States Attorney Francis P. Sempa prosecuted the case and handled the appeal for the government.
18 November 2013
“Strategies for Justice – Collaboration in the Western Pacific: A Pacific Regional Response to Combat Human Trafficking”Read the Press Release
U.S. Attorney’s Office for the District of Guam and the Northern Mariana Islands Co-sponsors Human Trafficking Training in Palau
Alicia A.G. Limtiaco, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, announced that her office co-sponsored the 2nd Pacific Regional Response to Combat Human Trafficking International Conference held in the Republic of Palau on July 22-26, 2013. U.S. Attorney Limtiaco, Assistant U.S. Attorney (AUSA) Rosetta San Nicolas and AUSA Rami Badawy, conducted training and presentations on topics including, “Pacific Regional Response to Combat Human Trafficking - Collaboration in the Western Pacific”; “Investigation and Prosecution of Sexually Oriented Businesses and Civil Code Enforcement”; and “Child Sexual Exploitation, Child Pornography and Human Trafficking of Minors.” U.S. Attorney Limtiaco, AUSA San Nicolas and AUSA Badawy were also instructors of the Human Trafficking Trial Advocacy Course, held at the Conference.
The U.S. Attorney’s Office (“USAO”) for the Districts of Guam and the Northern Mariana Islands (“NMI”) has been and continues to work collaboratively with the National District Attorney’s Association (NDAA); U.S. Department of Interior, Office of Insular Affairs, Federal Ombudsman Office; and U.S. Department of State, Monitoring of Trafficking in Persons Office, on a Pacific Regional Response to Combat Human Trafficking initiative. This response is a critical component of the USAO’s human trafficking strategic plan given increased concerns in the Pacific region regarding sex and labor trafficking, violence against women, and child abuse and sexual exploitation. Also of significance are the source countries within the Asia Pacific region from which victims are recruited and trafficked, and their close proximity to Guam, the NMI, Republic of Palau, Republic of the Marshall Islands, and Federated States of Micronesia (“FSM”); and the trafficking of victims in the islands themselves.
The Pacific Regional Response to Combat Human Trafficking initiative employs a multidisciplinary model, including participation, coordination, and collaboration among law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders. The response calls for the establishment and provision of victim services, investigation and prosecution of human trafficking, training opportunities, community outreach/ public awareness and prevention programs, and creation of human trafficking task forces and coalitions in the Pacific region island communities.
Providing fundamental training in human trafficking, including victimization, investigation and prosecution, prevention efforts, and other related topics, to law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders, in our Pacific region island communities, is critical to effective prevention and enforcement efforts in the region.
The conference provided a forum for governmental and non-governmental organizations to engage in dialogue and discuss issues, concerns, problems, plans, strategies and solutions relating to human trafficking in their respective Pacific island communities, in the Pacific region, and globally. The conference also provided an opportunity for the participants to establish professional relationships and partnerships, and to engage in cooperative and collaborative domestic and international efforts to prevent and fight against human trafficking, establish victim services, and prosecute and hold traffickers accountable for these heinous crimes.
The “2nd Pacific Regional Response to Combat Human Trafficking International Conference” was attended by approximately 100 leaders and members of the Pacific regional community.
Photos of the conference are attached.
Conference attendees from Guam and Saipan, left to right, Assistant U.S. Attorney Rami Badawy, Cynthia Kinto, UOG Student, Mary Kate Donnell, UOG Student, U.S. Attorney Alicia Limtiaco. Lauri Ogumoro, Director, Guma Esperanza, Saipan Attorney General Joey San Nicolas and Assistant U.S. Attorney Rosetta San Nicolas.
U.S. Attorney Alicia Limtiaco addressing conference participants.
William K. Harrington to Serve as U.S. Trustee for New York, Connecticut, VermontRead the Press Release
WASHINGTON – William K. Harrington, the U.S. Trustee for Massachusetts, New Hampshire, Maine and Rhode Island (Region 1), has been designated by Attorney General Eric Holder also to serve as the U.S. Trustee for New York, Connecticut and Vermont (Region 2), effective on November 27, 2013, the Executive Office for U.S. Trustees announced today. Mr. Harrington replaces Tracy Hope Davis, who has been appointed U.S. Trustee for Northern and Eastern California and Nevada (Region 17).
“The U.S. Trustee Program is tremendously fortunate to have Bill Harrington able to step in to serve as U.S. Trustee for this extremely significant region,” stated Clifford J. White III, Director of the Executive Office for U.S. Trustees. “Bill has many years of experience in the oversight of complex chapter 11 reorganizations, including as head of our office in Wilmington, Delaware, and he was a leader in the development of the updated chapter 11 attorneys’ fee guidelines that we issued in June.”
Mr. Harrington has served as U.S. Trustee for Region 1 since October 2010. Prior to that appointment, he served for two years as the Assistant U.S. Trustee in Wilmington, Del., after joining the U.S. Trustee Program (USTP) in March 2004 as a Trial Attorney. Previously, Mr. Harrington practiced law in a large regional law firm concentrating on bankruptcy, corporate and commercial litigation matters. Before attending law school, he worked as a senior accountant for an investment management firm in Boston.
Mr. Harrington received a law degree from Villanova University School of Law in Villanova, Pa., and a Bachelor of Science (Economics) degree from the Wharton School, University of Pennsylvania, in Philadelphia.
The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 95 field offices. Region 2 is headquartered in New York City with additional offices in Albany, Brooklyn, Buffalo, Central Islip, Rochester and Utica, N.Y., and New Haven, Conn.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411Wichita Man Sentenced for HelpingPolice Officer in Scheme to Pay BribeRead the Press Release
WICHITA, KAN. – A Wichita man has been sentenced to two years on federal probation for helping a former officer of the Wichita Police Department in a scheme to bribe a witness in hopes of keeping the officer from losing her job, U.S. Attorney Barry Grissom said today. He already spent five months in jail.
Patrick Melendrez, 40, Wichita, Kan., pleaded guilty to one count of conspiracy to commit wire fraud. In his plea, he admitted that co-defendant Joletta Vallejo developed a plan and asked him to assist her in bribing a witness to recant statements the witness made about Vallejo to the police department’s Professional Standards Bureau.
Vallejo was employed by the Wichita Police Department from Jan. 9, 2006, to Aug 24, 2012. On Oct. 16, 2011, two citizens approached her to report they were victims of an aggravated robbery, aggravated kidnaping, aggravated battery and attempted first degree murder. Vallejo did not follow the police department’s policies in responding and filing their complaints. As a result, Vallejo was investigated by the police department’s Professional Standards Bureau. When she was interviewed she lied to investigators. When she became aware she was going to be fired, she and Melendrez devised a scheme to attempt to keep her job.
On Aug. 22, 2012, Vallejo created a Google Voice number in the name of Melendrez. On Aug. 22 and 23, that number was used to call and text a witness to persuade him to recant his statements to the Professional Standards Bureau. In return, Vallejo and Melendrez offered the witness money. What Vallejo and Melendrez did not know is the witness was cooperating with an undercover investigation into the bribery attempt.
Co-defendant Vallejo is set for sentencing Dec. 2.
Grissom commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Debra Barnett for their work on the case.
West Memphis Arrests Take Violent Drug Dealers Off the StreetsRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; along with Howard S. Marshall, Acting Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation; Colonel Stan Witt, Arkansas State Police; and Chief Donald Oakes, West Memphis Police Department; announced today that on November 6, 2013, a federal grand jury returned a twenty-five count indictment charging twenty individuals in Crittenden County with participating in a drug conspiracy and firearms offenses.
“I made a commitment to the Arkansas Delta law enforcement to work side-by-side with them to take violent drug dealers off their streets,” stated Thyer. “The arrests this morning were the result of a coordinated effort with the West Memphis Police Department. When we work together, we will make a difference for the citizens of Eastern Arkansas.”
“Today's arrests in Operation Delta Crossroads are intended to reiterate the strong message to gang members and other criminals who pose the greatest threat of violence to the safety and security of those who live and work in Eastern Arkansas," stated Acting FBI Special Agent in Charge Howard S. Marshall. "We are here, we are working together, and we are committed to dismantling and disrupting your illegal operations.”
“With the arrests made this morning we took a big step in the fight against drugs and violence it in our community, and it is a great example of what can be accomplished when Local, State and Federal Law Enforcement cooperate for a common goal.”
The charges stem from a state and federal Organized Crime and Drug Enforcement Task Force (OCDETF) investigation operationally dubbed "Delta Crossroads." The investigation, which primarily focused on drug trafficking in West Memphis, was initiated by the FBI at the request of the West Memphis Police Department, which assisted extensively with the investigation. During the course of the investigation, law enforcement utilized three court-authorized wiretaps, during which hundreds of calls pertaining to cocaine and crack cocaine trafficking and firearms offenses were intercepted.
Defendants arrested in a round-up conducted by the FBI, ASP, and West Memphis Police Department, on November 18, 2013 will appear before United States Magistrate Judge Joseph J. Volpe for Plea and Arraignment on November 19, 2013, at 11:00 a.m. The remaining defendants will appear for Plea and Arraignment on a later date. The case, 4:13CR00329 BSM, is pending before U.S. District Chief Judge Brian S. Miller.
The investigation was conducted by the United States Attorney=s Office, FBI, ASP, and West Memphis Police Department. It is being prosecuted by Assistant United States Attorney Julie Peters.
An indictment contains only allegations. The defendants are presumed innocent unless and until proven guilty.
See attachment for specific information on individual defendants.
Delta Crossroads
Attachment
Statutory Sentences
Conspiracy to distribute and to possess with intent to distribute more than five hundred grams of mixtures containing cocaine and more than twenty-eight grams of mixtures containing cocaine base, commonly known as crack cocaine, in violation of 21 U.S.C. ' 846 carries a possible punishment of no less than five years and up to forty imprisonment, a fine of up to $5 million, and not less than four years and up to life supervised release.
Possession with intent to distribute cocaine in violation of 21 U.S.C. ' 841(a)(1) carries a possible punishment up to twenty years imprisonment, a fine of up to $1 million, and not less than three years and up to life supervised release.
Possession with intent to distribute crack cocaine in violation of 21 U.S.C. ' 841(a)(1) carries a possible punishment up to twenty years imprisonment, a fine of up to $1 million, and not less than three years and up to life supervised release.
The use of a telephone in furtherance of a drug trafficking crime in violation of 21 U.S.C. § 846 carries a possible punishment of up to four years imprisonment, a fine of up to $250,000, and up to one year supervised release.
The possession of a firearm in furtherance of a drug trafficking crime in violation of 18 U.S.C. ' 924(c) carries a possible punishment of no less than five years and up to life imprisonment, up to a $250,000 fine, and up to five years supervised release.
Osiel Acuna-Perez age 34 (BOP Custody) Memphis, TN Demetreuis Barrett age 30 West Memphis, AR Brandon Bohannon age 29 West Memphis, AR Brent Bohannon age 21 West Memphis, AR Willie Brown age 35 West Memphis, AR Willie Cooper age 50 West Memphis, AR David Edwards age 28 Olive Branch, MS Wendell Glenn age 27 West Memphis, AR David Green age 25 West Memphis, AR Delvin Green age 23 West Memphis, AR Courtney Hamilton age 23 West Memphis, AR John Hayes age 48 Houston, TX Rafael McDaniel age 31 West Memphis, AR Michael McDonald age 27 West Memphis, AR Gregory Miller age 34 (BOP Custody) Memphis, TN Deloricko Prewitt age 32 West Memphis, AR Detarious Robinson age 21 West Memphis, AR Dominique Robinson age 31 West Memphis, AR Jesse Robinson age 23 West Memphis, AR Ronnie Sanes age 33 West Memphis, ARWatertown Man Charged with Unlawful Taking of Migratory Birds and Lacey Act ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Watertown, South Dakota, man has been charged with Unlawful Taking of Migratory Birds and Lacey Act Violations by an Information filed October 30, 2013.
Roger Meyer, age 52, appeared before U.S. Magistrate Judge William D. Gerdes on November 8, 2013, and pled not guilty to the charge.
The maximum penalty upon conviction is 1 year of imprisonment and/or a $100,000 fine, 1 year of supervised release and an additional year of supervised release upon revocation, and a $25 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and Meyer is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Fish and Wildlife Service. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Meyer was released on bond pending trial which has not been set.
Waterford Man Sentenced to Federal Prison for Mortgage Fraud OffensesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JUAN VELEZ, 60, of Waterford, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 12 months and one day of imprisonment, followed by five years of supervised release, for his role in a mortgage fraud scheme. Judge Chatigny also ordered VELEZ to spend the first six months of his supervised release in home confinement, and to perform 120 hours of community service.
According to court documents and statements made in court, in 2006 and 2007, VELEZ and others engaged in a mortgage fraud scheme involving multiple properties in New London. As part of the scheme, VELEZ acquired properties from a co-defendant and other individuals and then sold the properties to another co-defendant, Flavia Mendoza, at inflated prices using fraudulently obtained mortgage loans.
On June 20, 2013, VELEZ pleaded guilty to one count of bank fraud. In pleading guilty, VELEZ specifically acknowledged that he was involved in the fraudulent transaction of a property located at 624-626 Montauk Avenue in New London. When VELEZ sold the property to Mendoza, the loan paperwork contained multiple false statements, including information related to Mendoza’s income, her intention to occupy the property as her primary residence, and the amount of money she was providing to purchase the property. Additionally, the Housing and Urban Development Settlement Statement form (“HUD-1”), which VELEZ signed, falsely stated that Mendoza had provided VELEZ with approximately $29,760 for the purchase of the property when Mendoza had not, in fact, provided any down payment money for the transaction. Based on these false statements, Mendoza obtained a mortgage loan in the amount of $492,699 from the bank.
VELEZ, Mendoza and others shared the profits of this and other fraudulently obtained residential mortgage loans, which totaled more than $1.2 million.
Judge Chatigny ordered VELEZ to pay restitution in the amount of $908,695.64 to four victim financial institutions.
Mendoza has pleaded guilty and awaits sentencing.
This matter was investigated by the U.S. Postal Inspection Service, the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Michael S. McGarry and Peter S. Jongbloed.
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(203) 821-3722 [email protected]Wanblee Woman Pleads Guilty to Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that Shy Bettelyoun, age 30, of Wanblee, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy, on November 8, 2013, and pled guilty to Conspiracy to Distribute a Controlled Substance and Distribution of a Controlled Substance.
The maximum penalty upon conviction is up to 20 years of imprisonment and/or a $1,000,000 fine.
On or about August 2009 through February 20, 2013, Bettelyoun conspired with other persons to distribute 50 grams or more of methamphetamine in and around the Pine Ridge Indian reservation.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Bureau of Indian Affairs Office of Justice Services, the Federal Bureau of Investigation, and Rapid City Police Department. The case is being prosecuted by Assistant U.S. Attorney Ted L. McBride.
A presentence investigation was ordered and a sentencing date has not been set. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.
US Attorney Marshall presents at White House Tribal Leaders ConferenceRead the Press Release
US Attorney Amanda Marshall with Grand Ronde Tribal Council Member Cheryle Kennedy
U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands Conducts Training in Palau, Pohnpei and ChuukRead the Press Release
Alicia A.G. Limtiaco, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that her office, together with the FBI, conducted training in the Republic of Palau; Pohnpei State, Federated States of Micronesia (FSM), and Chuuk State, FSM. The training was held in Palau in December 6-7, 2012, in Ponape on January 7- 8, 2013, and in Chuuk on January 9-10, 2013. U.S. Attorney Limtiaco, AUSA Rosetta San Nicolas, and AUSA Rami Badawy conducted presentations on topics including, “Pacific Regional Response to Combat Human Trafficking - Collaboration in the Western Pacific;” “Introduction to Human Trafficking Investigation and Prosecution;” and “Nuts and Bolts: Investigation and Prosecution of Human Trafficking Cases;” and “Bullying and Cyberbullying.” FBI Special Agent Jason Todd provided training on “Active Listening; Suspect Interviews;” “Crime Scene Investigation;” and “Introduction to Cyber Crime.”The U.S. Attorney’s Office (“USAO”) for the Districts of Guam and the NMI has been and continues to work collaboratively with the National District Attorney’s Association; U.S. Department of Interior, Office of Insular Affairs, Federal Ombudsman Office; and U.S. Department of State, Monitoring of Trafficking in Persons Office, on a Pacific Regional Response to Combat Human Trafficking. The Pacific Regional Response to Combat Human Trafficking initiative employs a multidisciplinary model, including participation, coordination, and collaboration among law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders. The response calls for the establishment and provision of victim services, investigation and prosecution of human trafficking, training opportunities, community outreach/ public awareness and prevention programs, and creation of human trafficking task forces and coalitions in the Pacific region island communities. Providing fundamental training in human trafficking, including victimization, investigation and prosecution, prevention efforts, and other related topics, to law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders, in our Pacific region island communities, is critical to effective prevention and enforcement efforts in the region.
Participants also learned about human trafficking, including sex trafficking and labor trafficking, the seriousness of the problem, and how to identify, communicate with, and respond to the needs of victims. Also discussed was a review of the Trafficking Victims Protection Act and other related federal laws.
The second day brought to the participants an overview of technology, what cybercrime is and related issues such as terrorism. Participants were also given an overview of bullying and cyberbullying; the seriousness of the problem; the impact on the community including youth suicide; enforcement efforts including civil rights lawsuits and consent decrees issued against school districts; and prevention efforts including public awareness outreaches to schools and parent groups, training of school districts, and other related activities.
Participants were provided information about child sexual and physical abuse. Also discussed were issues relating to children with special needs, and the relationship between child abuse and human trafficking of children.
U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands Conducts Training in Palau, Pohnpei and ChuukRead the Press Release
“Strategies for Justice – Collaboration in the Western Pacific”
Alicia A.G. Limtiaco, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that her office, together with the FBI, conducted training in the Republic of Palau; Pohnpei State, Federated States of Micronesia (FSM), and Chuuk State, FSM. The training was held in Palau in December 6-7, 2012, in Ponape on January 7- 8, 2013, and in Chuuk on January 9-10, 2013. U.S. Attorney Limtiaco, AUSA Rosetta San Nicolas, and AUSA Rami Badawy conducted presentations on topics including, “Pacific Regional Response to Combat Human Trafficking - Collaboration in the Western Pacific;” “Introduction to Human Trafficking Investigation and Prosecution;” and “Nuts and Bolts: Investigation and Prosecution of Human Trafficking Cases;” and “Bullying and Cyberbullying.” FBI Special Agent Jason Todd provided training on “Active Listening; Suspect Interviews;” “Crime Scene Investigation;” and “Introduction to Cyber Crime.”
The U.S. Attorney’s Office (“USAO”) for the Districts of Guam and the NMI has been and continues to work collaboratively with the National District Attorney’s Association; U.S. Department of Interior, Office of Insular Affairs, Federal Ombudsman Office; and U.S. Department of State, Monitoring of Trafficking in Persons Office, on a Pacific Regional Response to Combat Human Trafficking. The Pacific Regional Response to Combat Human Trafficking initiative employs a multidisciplinary model, including participation, coordination, and collaboration among law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders. The response calls for the establishment and provision of victim services, investigation and prosecution of human trafficking, training opportunities, community outreach/ public awareness and prevention programs, and creation of human trafficking task forces and coalitions in the Pacific region island communities. Providing fundamental training in human trafficking, including victimization, investigation and prosecution, prevention efforts, and other related topics, to law enforcement; prosecution; victim service providers; social services; medical, mental and public health professionals; faith based organizations; educational institutions; Consulates; and other community stakeholders, in our Pacific region island communities, is critical to effective prevention and enforcement efforts in the region.
Participants also learned about human trafficking, including sex trafficking and labor trafficking, the seriousness of the problem, and how to identify, communicate with, and respond to the needs of victims. Also discussed was a review of the Trafficking Victims Protection Act and other related federal laws.
The second day brought to the participants an overview of technology, what cybercrime is and related issues such as terrorism. Participants were also given an overview of bullying and cyberbullying; the seriousness of the problem; the impact on the community including youth suicide; enforcement efforts including civil rights lawsuits and consent decrees issued against school districts; and prevention efforts including public awareness outreaches to schools and parent groups, training of school districts, and other related activities.
Participants were provided information about child sexual and physical abuse. Also discussed were issues relating to children with special needs, and the relationship between child abuse and human trafficking of children.
A photo of some of the speakers at the training is attached
From left to right, U.S. Attorney Alicia Limtiaco, Dr. Sharon Cooper, Suzanna Tiapula, NDAA Executive Director, and Dr. Kimberly Chang.U.S. Attorney's Office, Cleveland Clinic and Others to Host Daylong Summit on Heroin EpidemicRead the Press Release
The Cleveland Clinic and United States Attorney’s Office, together with many partners, will host a daylong summit on the growing heroin epidemic in Northeast Ohio on Thursday, November 21 at the InterContinental Hotel.
“Heroin: A Crisis Facing Our Entire Community” will look at heroin abuse from the perspectives of the medical, treatment, education, prevention and law enforcement communities. The day will culminate with the development of community action plan that will lay out strategies and next steps in turning back the tide of heroin addiction.
“Greater Cleveland’s leading institutions are coming together to find solutions to this public health crisis,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “The fight against heroin is not just about arrests. It is also about prevention and treatment.”
“We support the efforts of the U.S. Attorney’s Office for bringing together this collaboration to stop the escalating abuse of heroin taking place in our communities,” said David Rowan, Cleveland Clinic’s Chief Legal Officer. “Through this summit, we have an opportunity to fight this battle on multiple levels by bringing together healthcare providers, criminal investigators, and experts in addiction and counseling.”
The summit will take place Nov. 21 from 8 a.m. until 3:30 p.m at the InterContinental Hotel, 9801 Carnegie Ave., Cleveland, 44106.
The threat is real. Heroin overdose fatalities are up about 400 percent in recent years in parts of Northeast Ohio. Police and prosecutors report a huge influx in both the availability of heroin and the number of heroin-related crimes.
There are also significant challenges from this crisis that are facing the medical profession. Doctors are grappling with how to effectively treat pain will responsibly prescribing opioids. Treatment professionals struggle with how to provide resources and help to people struggling with addiction, while parents, educators and others search for effective strategies to keep people from trying heroin in the first place.
The daylong event will feature speakers at the forefront of dealing with the heroin epidemic, as well as panel discussions and breakout sessions.
The summit is sponsored by the United States Attorney’s Office, the Cleveland Clinic, the Cuyahoga County Executive, the Ohio Attorney General, MetroHealth Medical Center, University Hospitals, Cuyahoga County Common Pleas Court, the Cleveland Division of Police, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Ohio State Medical Board, the Ohio State Pharmacy Board, Cuyahoga County Board of Health, the Cuyahoga County Medical Examiner, the ADAMHS Board., the Westshore Enforcement Bureau and others.
Tracy Hope Davis Is Appointed U.S. Trustee for Northern and Eastern California, NevadaRead the Press Release
WASHINGTON–Tracy Hope Davis has been appointed by Attorney General Eric Holder as U.S. Trustee for Northern and Eastern California and Nevada (Region 17), effective on November 27, 2013, the Executive Office for U.S. Trustees announced today. She replaces August B. Landis, who has been appointed to the U.S. Bankruptcy Court for the District of Nevada.
“I am delighted to announce the appointment of Tracy Hope Davis as U.S. Trustee for Northern and Eastern California and Nevada,” stated Clifford J. White III, Director of the Executive Office for U.S. Trustees. “Tracy has done an outstanding job as U.S. Trustee in New York, Connecticut and Vermont, and is nationally recognized for her superb oversight of complex chapter 11 cases in the Southern District of New York. We are fortunate to have her bring her expertise to another vital region of the country and to continue to rely on her leadership in developing national policies and initiatives.”
Ms. Davis was appointed as U.S. Trustee in New York, Connecticut and Vermont (Region 2) in August 2010. She joined the U.S. Trustee Program (USTP) in 1997 as a Trial Attorney before being named as the Assistant U.S. Trustee in the Southern District of New York. She has also served as the Acting Assistant U.S. Trustee in the Eastern District of New York (Brooklyn) and the Acting U.S. Trustee for Region 2. Previously, she practiced bankruptcy law in New York City and served as law clerk to the Honorable Cornelius Blackshear, U.S. Bankruptcy Court, Southern District of New York (retired).
Ms. Davis received a law degree from Rutgers Law School in Newark, N.J., and a Bachelor of Arts degree from Wells College in Aurora, N.Y. She has served in various capacities as a Wells College alumna, including as a member of the Wells College Board of Trustees and as a vice president on the Alumnae Board of Wells College.
The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 95 field offices. Region 17 is headquartered in San Francisco, with additional offices in Fresno, Oakland, Sacramento and San Jose, Calif., and Las Vegas and Reno, Nev.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411Three Somali Immigrants Sentenced for Providing Support to Foreign TerroristsRead the Press Release
SAN DIEGO – Basaaly Saeed Moalin, a cabdriver who was convicted by a federal jury of providing material support to the terrorist group al-Shabaab, was sentenced today by U.S. District Judge Jeffrey T. Miller to 18 years in prison.
Also sentenced at the same hearing were Mohamed Mohamed Mohamud, the imam at a popular mosque frequented by the city’s immigrant Somali community, to 13 years in prison; and Issa Doreh, who worked at a money transmitting business that was the conduit for moving the illicit funds, to 10 years in prison.
In sentencing Moalin, Judge Miller acknowledged the defendant’s considerable support from the Somali community, his childhood scars from violence in war-torn Somalia and his philanthropy as a naturalized American. However, he noted Moalin’s virtuous behavior “is substantially offset” by his collaboration with al-Shabaab and one of its most prominent leaders - Aden Hashi Ayrow.
Judge Miller said he imposed part of the sentence consecutively – making it three years longer - because Moalin went beyond financial assistance and provided a house to Ayrow. Judge Miller described that action as “an offense of a different magnitude,” noting that Moalin personally offered the home in Mogadishu to advance the agenda of al-Shabaab and to help hide weapons. “This count went beyond financial support and entered into another realm,” Judge Miller said.
At trial, the United States played for the jury a recorded telephone conversation in which Moalin gave the terrorists in Somalia permission to use his house, telling Ayrow that “after you bury your stuff deep in the ground, you would, then, plant trees on top.” Prosecutors argued at trial that Moalin was offering a place to hide weapons.
“These men willfully sent money to a terrorist organization, knowing al-Shabaab’s extremely violent methods, and knowing the U.S. had designated it as a foreign terrorist organization,” said U.S. Attorney Laura Duffy. “Months of intercepted phone conversations included discussion of suicide bombing, assassinations and Jihad. We are satisfied that because of this investigation and prosecution, we have furthered our mission to safeguard national security by blocking financial support to this dangerous group.”
FBI Special Agent in Charge, Daphne Hearn, stated: "I want to commend the work of the FBI's Joint Terrorism Task Force (JTTF) and the U.S. Attorney's Office who worked countless hours to successfully investigate and prosecute this case. As demonstrated in this case, the multi-agency partnerships which make up the JTTF continue to play a critical role in the day-to-day protection of our communities and our national security.”
“Today’s sentencing underscores HSI’s commitment to aggressively investigate those who engage in or attempt to support the financing of foreign terrorist organizations,” said Nick Annan, acting Special Agent in Charge for ICE HSI in San Diego. “I commend all of our partners on the San Diego Joint Terrorism Task Force for their exhaustive efforts to dismantle the plot that aimed to provide support to terrorists who wish to harm us.”
Moalin and his co-conspirators were found guilty during a three-week trial in February. The United States presented evidence that Moalin, Mohamud, Doreh and a fourth defendant, Ahmed Nasiri Taalil Mohamud, conspired to provide money to al-Shabaab, a violent and brutal militia group that engages in suicide bombings, targets civilians for assassination, and uses improvised explosive devices. In February, 2008, the U.S. Department of State formally designated al-Shabaab as a foreign terrorist organization.
At trial, the jury listened to dozens of the defendants’ intercepted telephone conversations, including many between Moalin and Ayrow. In those calls, Ayrow implored Moalin to send money to al-Shabaab, telling Moalin that it was “time to finance the Jihad.”
Ayrow told Moalin, “You are running late with the stuff. Send some and something will happen.” Ayrow was subsequently killed in a missile strike on May 1, 2008.
According to evidence at trial, the defendants conspired to transfer the funds from San Diego to Somalia through the Shidaal Express, a now-defunct money transmitting business in San Diego.
The fourth defendant, Ahmed Nasiri Taalil Mohamud, a cabdriver from Anaheim, is scheduled to be sentenced January 31, 2014 at 10 a.m. before Judge Miller.
This case was prosecuted in federal court in San Diego by Assistant U.S. Attorneys William Cole and Caroline Han and Department of Justice Trial Attorney Steven Ward. This case was investigated by the San Diego Joint Terrorism Task Force; the Federal Bureau of Investigation; the Department of Homeland Security, Immigration and Customs Enforcement; and the Department of Homeland Security, Customs and Border Protection.
DEFENDANTS Criminal Case No. 10CR4246-JM Basaaly Saeed Moalin
Mohamed Mohamed Mohamud
Issa Doreh
Ahmed Nasir Taalil Mohamud SUMMARY OF CHARGESCount 1 (all defendants) : Title 18, United States Code, Section 2339A(a)(1) - Conspiracy provide material support to terrorists; Maximum penalties: 15 years in prison
Count 2 (all defendants): Title 18, United States Code, Section 2339B(a)(1) - Conspiracy provide material support to foreign terrorist organization; terrorists; Maximum penalties: 15 years in prison
Count 3 (all defendants): Title 18, United States Code, Section 1956(h) – Conspiracy to launder monetary instruments; Maximum penalties: 15 years in prison
Count 4 (Basaaly Moalin) Title 18, United States Code, Section 2339A(a) – Providing material support to terrorists; Maximum penalties: 15 years in prison
Count 5 (defendants Basaaly Moalin, Mohamed Mohamed Mohamud and Issa Doreh) Title 18, United
INVESTIGATING AGENCIES
States Code, Section 2339B(a)(1) – Providing material support to foreign terrorist organization; Maximum penalties 15 years in prisonSan Diego Joint Terrorism Task Force
Federal Bureau of Investigation
Homeland Security Investigations, Immigration and Customs Enforcement
Homeland Security Investigations, Customs and Border ProtectionThomas Andrew Quinton Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on November 12, 2013, before U.S. Magistrate Judge Keith Strong, THOMAS ANDREW QUINTON, a 32-year-old resident of Lethbridge, Alberta, Canada, pled guilty to travel with the intent to engage in illicit sexual conduct. Sentencing has been set for February 7, 2014. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Michael S. Lahr, the government stated it would have proved at trial the following:
In June 2013, members of the Montana Internet Crimes Against Children (ICAC) Task Force in Great Falls conducted a "catch the predator" operation. An advertisement was posted on Craigslist in an attempt to target individuals in Great Falls and the surrounding area who were interested in engaging in sexual conduct with a minor child.
On June 24, 2013, an agent posted one such ad and received numerous responses. The agent then used an undercover persona to pose as a fictitious person named Teresa Smith, a 38-year-old female in Great Falls living with her 12-year-old niece, Katie Smith. The agent exchanged several e-mails with an individual responding to the ad who ultimately identified himself as Thomas Andrew Quinton, a Canadian citizen. The e-mails from QUINTON contained descriptions of sexual acts QUINTON wanted to engage in with Katie. QUINTON also sent a photograph of himself and two more of his penis.
Beginning July 2, 2013, QUINTON began texting the agent stating that he would be taking time off work. The agent exchanged 375 text messages with QUINTON between July 2, 2013, and July 3, 2013. Many of the text messages contained descriptions of sexual acts or were of a sexual nature. QUINTON was advised on multiple occasions via text and e-mail that Katie was a 12-year-old girl.
The telephone number QUINTON used was identified as a Canadian-based number out of Lethbridge, Alberta.
QUINTON was given the address of the house being utilized by ICAC Task Force agents for the operation, and QUINTON agreed to travel to the residence to engage in sexual conduct with Katie.
At around 4:15 p.m. on July 3, 2013, QUINTON parked his truck at the residence and walked to the house where he was arrested and taken into state custody charged with sexual abuse of children.
The agent and a Great Falls Police detective interviewed QUINTON who stated that he had traveled from Lethbridge to Great Falls on July 3, 2013, to have sex with Katie. He confirmed his cellular phone number was the number used for the text messaging and that he had corresponded via text messaging and e-mails with Teresa and Katie for the purpose of meeting Katie and engaging in sexual acts. The agent also confirmed that QUINTON and his vehicle had entered the United States at the Sweetgrass Port of Entry on July 3, 2013, at 2:28 p.m.
QUINTON faces possible penalties of 30 years in prison, a $250,000 fine, and lifetime supervision.
The investigation was a cooperative effort between the U.S. Department of Homeland Security - Homeland Security Investigations, the Montana Internet Crimes Against Children (ICAC) Task Force, and the Great Falls Police Department.
Statement of Mythili Raman Acting Assistant Attorney General U.S. Justice Department Criminal Division Before the Committee on Homeland Security and Governmental Affairs United States Senate for a Hearing Entitled "Beyond the Silk Road"Read the Press Release
Chairman Carper, Ranking Member Coburn, and distinguished Members of the Committee: Thank you for the opportunity to appear before the Committee today to discuss the Department of Justice’s work regarding virtual currencies. I am honored to represent the Department at this hearing and to describe for you our approach to virtual currencies, our recent successes in prosecuting criminals who use virtual currencies for illicit purposes, and some of the challenges we face as virtual currency systems continue to evolve.
The Department of Justice recognizes that many virtual currency systems offer legitimate financial services and have the potential to promote more efficient global commerce. We have also seen, however, that certain aspects of virtual currencies appeal to criminals and present a host of new challenges to law enforcement.
The concept of virtual currencies is not new to the Department and, indeed, the Department has investigated and prosecuted the illicit use of virtual currencies since the late 1990s, when criminals first began using systems such as WebMoney and e-Gold to conduct their business. Over the last 15 years, however, virtual currencies have evolved and diversified significantly, challenging the Department to adapt our capabilities to deal with new systems and threats.
As with all emerging technologies, the Department has aggressively used our existing tools and capabilities to combat illegal activities involving virtual currencies. The Department has two primary law enforcement interests in virtual currency: (1) deterring and prosecuting criminals using virtual currency systems to move or hide money that is used to facilitate, or is derived from, criminal or terrorist acts, i.e., money laundering; and (2) investigating and prosecuting those virtual currency services that themselves violate laws aimed at illegal money transmission and money laundering. As I will describe in my testimony, the Department is committed to using all the tools at our disposal to ensure that those law enforcement interests are met, even as virtual currency systems evolve.
“Virtual currency” is a medium of exchange circulated over a network, typically the Internet, which is not backed by a government. These systems can be both centralized and decentralized.
Early centralized models, where the currency is controlled by a single private entity, have expanded and now encompass a wide range of business concepts. Some centralized virtual currencies take the form of digital precious metals, such as e-Gold and Pecunix, where users exchange digital currency units ostensibly backed by gold bullion or other precious metals. Others exist within popular online games or virtual worlds, such as Farmville, Second Life, or World of Warcraft. Still others are online payment systems such as WebMoney and Liberty Reserve, which are available generally outside of specific online communities and denominate users’ accounts in virtual currency rather than U.S. Dollars, Euros, or some other national currency. Decentralized systems such as Bitcoin, which have no centralized administrating authority and instead operate as peer-to-peer transaction networks, entered the scene relatively recently but are growing rapidly. A network of sites and services, including exchangers who buy and sell virtual currencies in exchange for national currencies or other mediums of value, have developed around virtual currency systems, as well.
Criminals are nearly always early adopters of new technologies and financial systems, and virtual currency is no exception. As virtual currency has grown, it has attracted illicit users along with legitimate ones. Our experience has shown that some criminals have exploited virtual currency systems because of the ability of those systems to conduct transfers quickly, securely, and often with a perceived higher level of anonymity than that afforded by traditional financial services. The irreversibility of many virtual currency transactions additionally appeals to a variety of individuals seeking to engage in illicit activity, as does their ability to send funds cross-border.
Cyber criminals were among the first illicit groups to take widespread advantage of virtual currency. We have seen that many players in the cyber underground rely on virtual currency to conduct financial transactions. Early users of virtual currency also included criminals involved in the trafficking of child pornography, credit card fraud, identity theft, and high-yield investment schemes. As virtual currency became more widespread and criminals became increasingly computer savvy, other criminal groups moved to capitalize on virtual currency, as well. There are now public examples of virtual currency being used by nearly every type of criminal imaginable.
It is not surprising that criminals are drawn to services that allow users to conduct financial transactions while remaining largely anonymous. And, indeed, some of the criminal activity occurs through online black markets, many of which operate as Tor hidden services. Tor hidden services are sites accessible only through Tor, an anonymizing network that masks users’ Internet traffic by routing it through a series of volunteer servers, called “nodes,” across the globe. Online black markets capitalize on Tor’s anonymizing features to offer a wide selection of illicit goods and services, ranging from pornographic images of children to dangerous narcotics to stolen credit card information.
At the same time, we have seen that though virtual currency systems are growing rapidly, few systems currently exist that could easily accommodate the hundreds of millions of dollars often moved in a single large-scale money laundering scheme. Transaction size is limited by the carrying capacity of the virtual currency systems and the exchangers. When taken in the aggregate, however, the relatively small dollar values associated with most illicit virtual currency transactions quickly add up. At their prime, e-Gold and Liberty Reserve, two virtual currency systems prosecuted by the Department, each moved the equivalent of over $1 billion in illegal proceeds annually. As virtual currencies grow, the capacity for larger single transactions grows, as well.
The Department has prosecuted several of these systems, such as e-Gold, based on evidence that they can be, and often are, intentionally designed to facilitate illegal activity. These services typically do not conduct any meaningful customer due diligence and do not screen for transactions related to money laundering or terrorist financing. At the same time, these complicit and illicit businesses allow users to conceal their identities and maintain high levels of anonymity during transactions.
To be clear, virtual currency is not necessarily synonymous with anonymity. A convertible virtual currency with appropriate anti-money laundering and know-your-customer controls, as required by U.S. law, can safeguard its system from exploitation by criminals and terrorists in the same way any other money services business could. As virtual currency systems develop, it is imperative to law enforcement interests that those systems comply with applicable anti-money laundering and know-your-customer controls.
Exploitation by malicious actors is a problem faced by all types of financial services and is not unique to virtual currency systems. Although malicious actors have utilized emerging technologies to further their criminal schemes, the Department has thus far been able to apply existing tools to ensure vigorous prosecution of these schemes.
The Department relies on money services business, money transmission, and anti-money laundering statutes to curtail this sort of unlawful activity. Many virtual currency systems, exchangers, and related services operate as money transmitters, which are part of a larger class of institutions called money services businesses. Money transmitters are required under 31 U.S.C. § 5330 to register with the Financial Crimes Enforcement Network (FinCEN). Most states also require money transmitters to obtain a state license in order to conduct business in the state. Any money transmitter that fails to register with FinCEN or to obtain the requisite state licensing may be subject to criminal prosecution under 18 U.S.C. § 1960. Additionally, the general money laundering and spending statutes, 18 U.S.C. §§ 1956 and 1957, cover financial transactions involving virtual currencies. Finally, where virtual currencies are used in furtherance of underlying criminal activity, the Department can rely on traditional criminal statutes proscribing that activity, such as narcotics, cybercrime, child exploitation, and firearms laws.
Some of the major prosecutions in recent years involving virtual currency services are as follows.
The Department first took major action against an illicit virtual currency service in 2007, when it indicted e-Gold and its three principal owners on charges related to money laundering and operating an unlicensed money transmitting business. E-Gold offered digital accounts purportedly backed by physical gold bullion. A valid e-mail address was the only information required to set up an account, allowing users to conduct highly anonymous international transactions over the Internet. As a result, e-Gold became a popular payment method for sellers of child pornography, operators of investment scams, and perpetrators of credit card and identity fraud. At its peak, e-Gold reportedly moved over $6 million each day for more than 2.5 million accounts. In 2008, e-Gold and the three individuals pleaded guilty.Following the e-Gold indictment, several similar but smaller systems and exchangers were indicted or closed themselves down to evade law enforcement detection. According to publicly filed charging documents, an executive of one of those businesses, Arthur Budovsky, then set out to create Liberty Reserve, an improved centralized virtual currency variation allegedly designed to evade U.S. law enforcement. Among other things, Liberty Reserve operated offshore –it was based in Costa Rica--and purportedly recommended that its customers use money exchangers located in countries without significant governmental money-laundering oversight or regulation. Moreover, Budovsky, the principal founder of Liberty Reserve, was so committed to avoiding the reach of U.S. law that, according to the indictment, in 2011, he formally renounced his U.S. citizenship and became a Costa Rican citizen in order to avoid facing justice in the United States .
Despite Budovsky’s alleged efforts, earlier this year, the Department indicted Liberty Reserve and its executives, including Budovsky, for running a $6 billion money laundering operation. In a coordinated action, the Department of the Treasury identified Liberty Reserve as a financial institution of primary money laundering concern under Section 311 of the USA PATRIOT Act, effectively cutting it off from the U.S. financial system.
According to the indictment, Liberty Reserve allowed users to send and receive funds with a high level of anonymity by not requiring users to validate their identities and allowing users to make untraceable fund transfers in exchange for a privacy fee. Many of the transactions were sent to or from users in the United States, but Liberty Reserve never registered with the appropriate U.S. authorities. As revealed in the Department’s filings, Liberty Reserve became a system of choice for cyber criminals and was used in a wide array of illegal activity, including credit card fraud, identity theft, investment fraud, computer hacking, and child pornography. As a result of the Department’s action, the site was shuttered and effectively put out of business, and five defendants were arrested. One is in custody in the United States, one has entered a guilty plea, and three others, including the lead defendant Budovsky, are pending extradition. The case exemplifies the Department’s resolve to pursue purported major money laundering facilitators, even those who hide offshore.
Just last month, the Department took action against one of the most popular online black markets, Silk Road. Allegedly operated by a U.S. citizen living in California at the time of his arrest, Silk Road accepted bitcoins exclusively as a payment mechanism on its site. The Department’s complaint alleges that, in less than three years, Silk Road served as a venue for over 100,000 buyers to purchase hundreds of kilograms of illegal drugs and other illicit goods from several thousand drug dealers and other criminal vendors. The site also purportedly laundered the proceeds of these transactions, amounting to hundreds of millions of dollars in bitcoins. In addition to arresting the site’s operator and shutting down the service, the Department to date has seized over 170 thousand bitcoins, valued as of Friday, November 15, 2013, at over $70 million.
A separate indictment charges Silk Road’s operator with drug distribution conspiracy, attempted witness murder, and using interstate commerce facilities in the commission of murder-for-hire. With regard to the murder-related charges, the indictment alleges that the Silk Road operator paid an undercover federal agent to murder one of the operator’s employees.
The cases I just described illustrate not only Department successes in combating illicit use of virtual currency, but also many of the challenges investigators face when they encounter these systems, some of which may ultimately require additional legal or regulatory tools.
Virtual currency allows users to send money across the globe without dealing with a traditional financial institution. While this feature provides several benefits for legitimate customers, it can significantly complicate law enforcement efforts to follow the money.
Virtual currency systems have a global reach and clientele. Virtual currency businesses can cater to U.S. clientele while operating on the other side of the world. Investigations into illicit virtual currency businesses therefore often require considerable cooperation from international partners. The Liberty Reserve investigation and takedown, for example, involved coordinated law enforcement action in 17 countries.
The international nature of the transactions poses an additional challenge where the overseas regulatory regime treats virtual currency differently or, as is true in some cases, fails to cover it at all. While this challenge may diminish with the Financial Action Task Force’s recent guidance addressing the need for all countries to develop a risk-based approach to new payment products and services, incongruent regulatory regimes will likely remain a challenge when dealing with virtual currency services overseas.
Among the most significant challenges the Department faces in dealing with virtual currency is the difficulty in obtaining customer records. Because decentralized systems lack any sort of administering authority to collect user information or receive legal process, investigators must rely on information collected by other sources, such as exchangers. Even if the target used a centralized system or exchanger, however, accurate customer records may still be difficult to obtain, or may not exist at all. Illicit users are typically attracted to systems with lax anti-money laundering and know-your-customer controls. These services often attempt to evade U.S. action by operating out of countries that have poor regulatory oversight and are less willing to cooperate with U.S. law enforcement. Even if the system at issue operates in a country with effective regulation and a cooperative relationship with the United States, the legal process for obtaining foreign records is relatively slow when compared to the near-instantaneous speed at which the virtual currency user can send the funds to another jurisdiction.
A final challenge arises from the link between virtual currency and encryption. Decentralized virtual currencies typically rely on an encryption algorithm, rather than a central authority, to administer the currency. These encryption-based currencies, also known as cryptocurrencies, lack a central administering authority that might otherwise possess valuable evidence. In addition, users of these currencies often encrypt their digital wallets, complicating our efforts to seize and forfeit criminal proceeds.
The Department recognizes that virtual currency’s ability to facilitate the global movement of funds by a wide array of illicit actors necessitates a comprehensive and collaborative approach with our domestic and international partners. To promote such coordination, the Department is an active participant in the Virtual Currency Emerging Threats Working Group (VCET). VCET was founded by the Federal Bureau of Investigation (FBI) in early 2012 to mitigate the cross-programmatic threats arising from illicit actors’ use of virtual currency systems. The group leverages the collective subject matter expertise of its members to address issues arising from illicit actors’ use of virtual currency, and deconflicts and shares information and concerns. VCET members represent an array of U.S. Government agencies, including, within the Department, the FBI, the Drug Enforcement Administration, multiple U.S. Attorney’s Offices, and the Criminal Division’s Asset Forfeiture and Money Laundering Section and Computer Crime and Intellectual Property Section.
The Department contributes to several additional interagency groups concerning virtual currencies and emerging payment systems, including the New Payment Methods Ad Hoc Working Group, a subgroup of the Terrorist Finance Working Group, led by the State Department. The FBI specifically has issued numerous intelligence products related to virtual currency, many of which were coauthored with other members of the U.S. Intelligence Community.
The Department is committed to working with our regulatory partners to ensure appropriate coordination on regulatory issues related to virtual currency. The Department participated in meetings and discussions with FinCEN regarding the July 2011 Final Rule on Money Services Businesses and its applicability to virtual currencies, as well as the related March 18, 2013, FinCEN guidance. The Department regards FinCEN’s regulation of many virtual currency services as money transmitters, as well as the resulting applicability of anti-money laundering and know-your-customer requirements under the Bank Secrecy Act, as crucial tools in preventing malicious actors from exploiting virtual currency systems in furtherance of illicit activity.
The Department works closely with FinCEN and the Department of Treasury to coordinate enforcement actions when appropriate. This relationship allowed the Department to unseal the Liberty Reserve indictment in coordination with Treasury’s announcement naming the company as a financial institution of primary money laundering concern under Section 311 of the USA PATRIOT Act. Such coordinated actions are integral tools in combating illicit finance.
The Department anticipates that virtual currency will continue to evolve and grow in popularity. That growth inevitably will be accompanied by an increase in illicit transactions, which makes it critical that virtual currency services understand their legal obligations and requirements. The Department is encouraged by the increasing prominence of legitimate virtual currency services that are attempting to comply with U.S. law. While a number of services have registered at the federal level, many are still struggling with implementing appropriate anti-money laundering, know-your-customer, and customer due diligence programs, as well as complying with state-level regulations and licensing requirements. As members of the U.S. financial community, virtual currency services can and must safeguard themselves from exploitation by criminals and terrorists by implementing legally required anti-money laundering and know-your-customer controls.
As the Administration’s Strategy to Combat Transnational Organized Crime recognizes, transnational organized crime networks are increasingly involved in cybercrime, and can imperil consumers’ faith in emerging digital systems. We must also pay close attention to the critical role of facilitators who cross both the licit and illicit worlds and provide services to legitimate customers and criminals alike.
The Department recognizes that malicious actors are often resourceful, and even legitimate virtual currency services can become unwitting conduits for illicit transactions when these actors are able to defeat or circumvent anti-money laundering controls. Outreach to these systems, much as the Department conducts with the formal financial sector, is an important tool in combating the exploitation of the systems for criminal and terrorist purposes. Because centralized payment systems and exchangers often interact with the traditional financial sector and hold bank accounts at major financial institutions, the range of such Department outreach extends to the financial services community at large, complementing the outreach and training efforts of FinCEN, the primary BSA regulator, and the Department of the Treasury. Department of Justice personnel routinely provide trainings to the private sector, as well as to domestic and international law enforcement and intelligence personnel, and specifically address virtual currency.
Law enforcement, Congress, and regulators must remain vigilant to ensure that the U.S. legal and regulatory structure is sufficiently robust to cover decentralized virtual currencies. The Department looks forward to working with Congress to ensure that law enforcement continues to have the tools necessary to combat the use of virtual currency for illicit purposes.
Chairman Carper and Ranking Member Coburn, I thank you for this opportunity to discuss the Department’s work on virtual currency.
I look forward to any questions that you may have.
Stars of ‘Real Housewives of New Jersey’ Television Series Indicted on Additional Fraud ChargesRead the Press Release
NEWARK, N.J. – Two of the stars of the Bravo television show “The Real Housewives of New Jersey” were indicted today on additional charges of bank fraud and loan application fraud, U.S. Attorney Paul J. Fishman announced.
The 41-count superseding indictment returned by a federal grand jury against Teresa Giudice, 41, and her husband, Giuseppe “Joe” Giudice, 43, both of Towaco, N.J., adds two new counts charging both defendants: one count of bank fraud and one count of loan application fraud. The original 39 counts on which they were indicted on July 29, 2013, which include conspiracy to commit mail and wire fraud, bank fraud, making false statements on loan applications and bankruptcy fraud, as well as charges against Giuseppe Giudice for failure to file tax returns from 2004 through 2008, remain in place.
An arraignment on the new charges has been scheduled for 10:30 a.m., Nov. 20, 2013, before U.S. District Judge Esther Salas in Newark federal court.According to the superseding indictment:
The two additional counts stem from a $361,250 mortgage loan that Teresa Giudice obtained in July 2005. In the course of obtaining the loan, she and Giuseppe Giudice prepared a loan application which falsely stated that Teresa Giudice was employed as a realtor and that she had a monthly salary of $15,000. Teresa Giudice was not employed outside the home at the time.
The bank fraud and loan application fraud counts each carry a maximum potential penalty of 30 years in prison and a $1 million fine.
U.S. Attorney Fishman credited special agents of the Federal Deposit Insurance Corporation, Office of Inspector General, New York Region, under the direction of Special Agent in Charge A. Derek Evans; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and Region 3 U.S. Trustee Roberta DeAngelis and the Newark office of the U.S. Trustee, with the investigation which led to today’s indictment.
The government is represented by Assistant U.S. Attorneys Jonathan W. Romankow and Rachael Honig of the U.S. Attorney’s Office, Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty
13-440
Defense counsel: Giuseppe Giudice: Miles Feinstein Esq., Paterson
Teresa Giudice: Henry E. Klingeman Esq., NewarkGiudice, Giuseppe and Teresa Superseding Indictment
Stars of ‘Real Housewives of New Jersey’ Television Series Indicted on Additional Fraud ChargesRead the Press Release
NEWARK, N.J. – Two of the stars of the Bravo television show “The Real Housewives of New Jersey” were indicted today on additional charges of bank fraud and loan application fraud, U.S. Attorney Paul J. Fishman announced.
The 41-count superseding indictment returned by a federal grand jury against Teresa Giudice, 41, and her husband, Giuseppe “Joe” Giudice, 43, both of Towaco, N.J., adds two new counts charging both defendants: one count of bank fraud and one count of loan application fraud. The original 39 counts on which they were indicted on July 29, 2013, which include conspiracy to commit mail and wire fraud, bank fraud, making false statements on loan applications and bankruptcy fraud, as well as charges against Giuseppe Giudice for failure to file tax returns from 2004 through 2008, remain in place.
An arraignment on the new charges has been scheduled for 10:30 a.m., Nov. 20, 2013, before U.S. District Judge Esther Salas in Newark federal court.According to the superseding indictment:
The two additional counts stem from a $361,250 mortgage loan that Teresa Giudice obtained in July 2005. In the course of obtaining the loan, she and Giuseppe Giudice prepared a loan application which falsely stated that Teresa Giudice was employed as a realtor and that she had a monthly salary of $15,000. Teresa Giudice was not employed outside the home at the time.
The bank fraud and loan application fraud counts each carry a maximum potential penalty of 30 years in prison and a $1 million fine.
U.S. Attorney Fishman credited special agents of the Federal Deposit Insurance Corporation, Office of Inspector General, New York Region, under the direction of Special Agent in Charge A. Derek Evans; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and Region 3 U.S. Trustee Roberta DeAngelis and the Newark office of the U.S. Trustee, with the investigation which led to today’s indictment.
The government is represented by Assistant U.S. Attorneys Jonathan W. Romankow and Rachael Honig of the U.S. Attorney’s Office, Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty
13-440
Defense counsel: Giuseppe Giudice: Miles Feinstein Esq., Paterson
Teresa Giudice: Henry E. Klingeman Esq., NewarkGiudice, Giuseppe And Teresa Superseding Indictment
St. Francis Man Charged with Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that Vernon Verdell Blackhorse, age 63, of St. Francis, South Dakota, appeared before U.S. District Judge Roberto A. Lange on November 6, 2013, and pled guilty to Abusive Sexual Contact.
The maximum penalty upon conviction is 6 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place in Eagle Butte between May 1, 2002, and August 30, 2002, when Blackhorse was laying on a couch behind the victim, who was age 11 or 12 at the time. The victim woke up when she felt Blackhorse touching her over the clothing in a sexual manner. The victim jumped off the couch and was able to end the sexual contact.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.A presentence investigation was ordered and a sentencing date was set for January 27, 2014. Blackhorse was remanded to the custody of the U.S. Marshals Service pending sentencing.
Springfield Man Sentenced to 14 Years in Prison for Receiving Child PornographyRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Ill., man, Kievan R. Walters, III, 24, was taken into the custody of the U.S. Marshals Service today immediately following his sentencing hearing for receiving child pornography. U.S. District Judge Sue E. Myerscough sentenced Walters, of the 900 block of North Indiana Avenue, Springfield, Ill., to 14 years in federal prison to be followed by 25 years of supervised release following completion of the prison sentence.
Walters pled guilty on Jul. 23, 2013, to one count of receiving child pornography in the fall of 2012.
The case was investigated by the U.S. Immigration and Customs Enforcement Homeland Security Investigations. Assistant U.S. Attorney Gregory K. Harris prosecuted the case.
The 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 U.S. 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.
Romanian National Pleads Guilty to Naturalization FraudRead the Press Release
BOISE – Simona Rus, 36, of Ketchum, Idaho, pleaded guilty today in United States District Court to unlawful procurement of United States Citizenship based on her fraudulent marriage to a United States citizen, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement filed in the case, Rus admitted that, in 2003, she married a U.S. citizen for the sole purpose of obtaining immigration benefits. Rus never resided with her spouse as husband and wife. In January of 2009, Rus misrepresented the nature of her marriage in an application for naturalization to United States Citizenship and Immigration Services (USCIS). In May of 2009, USCIS granted Rus naturalization as a United States citizen as a result of her fraudulent marriage. As part of her plea agreement, Rus stipulated to an order revoking her citizenship.
Rus faces up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release, in addition to administrative removal proceedings.
Rus is scheduled to be sentenced on February 10, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Raymond Donovan Williams Convicted of Federal Drug CrimesRead the Press Release
MOBILE, Ala. – Raymond Donovan Williams, 32, of Chickasaw, was convicted in federal court today for his participation in a conspiracy to possess with intent to distribute cocaine, and for possession with intent to distribute cocaine. Williams’ jury trial started before Hon. Kristi K. Dubose this morning, and ended with the jury verdict of guilty on both charges returned shortly before 5:00 p.m. today.
As a result of the guilty verdicts, Judge Dubose remanded Williams into the custody of the United States Marshal’s Office pending the imposition of sentence in the case, and ordered that the sentencing hearing be set for February 14, 2014. She ordered the United States Probation Office to prepare a presentence investigation report to assist her in determining the appropriate sentence, as is required in every criminal case prior to the imposition of sentence. Williams faces terms of imprisonment ranging from 5 years to 40 years on each count.
The case was investigated by the Mobile County Sheriff’s Office and the Department of Homeland Security Investigations. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
Rapid City Woman Pleads Guilty to Concealing A FugitiveRead the Press Release
United States Attorney Brendan V. Johnson announced that Tina Marie Ladeaux, a/k/a Tina M. Cooper, a/k/a Tina Cooperboyd, age 41, of Rapid City, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy on October 31, 2013, and pled guilty to Concealing Person from Arrest.
The maximum penalty upon conviction is 5 years of imprisonment and a $250,000 fine.
The charge stems from Ladeaux concealing her husband, Eric Ladeaux, from law enforcement after being informed there was a warrant for his arrest for Escape on federal charges in September 2012.
The investigation was conducted by the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Sarah B. Collins.
A presentence investigation was ordered and a sentencing date was set for February 3, 2014. The defendant was released on bond pending sentencing.
Puerto Rico Man Pleads Guilty to Felony Violation of the Lacey Act for Illegal Sale of Sea Turtle MeatRead the Press Release
SAN JUAN, Puerto Rico – Manuel Garcia-Figueroa, a resident of Playa Añasco, Puerto Rico, pleaded guilty to a bill of information charging him with a felony violation of the Lacey Act for the illegal sale of sea turtle meat, the Justice Department announced today.
According to the information filed in the U.S. District Court in Puerto Rico, Garcia-Figueroa knowingly sold more than $350 of meat and carapaces from endangered hawksbill sea turtles (Eretmochelys imbricata) and meat from a threatened green sea turtle (Chelonia mydas), while knowing that the sea turtles had been taken in violation of the Endangered Species Act (ESA). The illegal sales took place on or about Dec.11, 2009, to on or about Jan. 4, 2010, in and around Playa Añasco. The case resulted from a joint-undercover operation by the National Oceanic and Atmospheric Administration Office of Law Enforcement (NOAA-OLE) and the FBI.
All species of sea turtles found in the Gulf of Mexico, Atlantic Ocean, Caribbean Sea and waters adjacent to the United States are protected by the ESA. Sea turtles are long-lived and slow to reach maturity. Pressures from habitat loss, fishing operations, pollution, illegal harvesting of eggs, and poaching of adults exacerbate the extinction risk faced by these animals. In Puerto Rico, the green sea turtle (Chelonia mydas) is listed as “threatened” under the ESA; the hawksbill sea turtle (Eretmochelys imbricata) is listed as “endangered.”
The Lacey Act is the principal U.S. statute designed to reduce the role that wildlife poaching, selling, and smuggling plays in depleting protected species. Once an ESA-listed wildlife species is taken or possessed illegally, it is unlawful to “import, export, transport, sell, receive, acquire, or purchase” that species. A person commits a criminal violation of the Lacey Act if the illegal conduct involves the sale or purchase of wildlife with a market value in excess of $350, while knowing that the wildlife was taken in violation of or in a manner unlawful under, any underlying law, treaty, or regulation.
The waters around Puerto Rico are designated as a critical habitat for the hawksbill and the green sea turtle. The most significant nesting for the hawksbill within the U.S. occurs in Puerto Rico and the U.S. Virgin Islands. Each year, about 500-1,000 hawksbill nests are laid on Mona Island, Puerto Rico. The green sea turtle population has declined by 48-65 percent over the past century. Puerto Rico is also home to nesting sites for the endangered leatherback sea turtle, the largest species of turtle in the world.
The commonwealth of Puerto Rico contains six national wildlife refuges (Cabo Rojo, Culebra, Desecheo, Laguna Cartagena, Navassa Island and Vieques) and is home to 25 endangered and threatened animal species, 21 of which are found nowhere else on earth
In 2013, the Justice Department’s Environment and Natural Resources Division and the U.S. Attorney’s Office in Puerto Rico announced the formation of the Puerto Rico Environmental Crimes Task Force to investigate and prosecute environmental crimes on the island. Under the new task force, federal investigative agencies are coordinating their efforts to investigate and prosecute those responsible for committing serious environmental crimes.The cases are being prosecuted by Trial Attorney Christopher Hale of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and Assistant U.S. Attorneys Carmen Márquez and Hector Ramirez of the District of Puerto Rico. If convicted, the defendant faces a maximum sentence of five years in prison and a $250,000 fine.
Sentencing is scheduled for Feb. 18, 2014.
For more information of environmental crime laws: www.justice.gov/enrd/ENRD_ecs.htmlFor more information on marine turtles: www.nmfs.noaa.gov/pr/species/turtles/
13- 1231
Prince George’s County Drug Dealer Sentenced to 25 Years in PrisonRead the Press Release
Sold Drugs From His Suitland Auto Repair Business
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Kevin Leon Mormon, age 33, of Brandywine, Maryland, today to 25 years in prison, followed by 10 years of supervised release, for conspiracy to distribute and possess with intent to distribute crack cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to evidence presented during Mormon’s three day trial, between July 2009 and June 2012, Mormon conspired with others in the Prince George’s County area to distribute crack and powder cocaine. Beginning in February 2012, the FBI began investigating Mormon’s distribution activity out of his Suitland business, Premier Auto Salon. In late March and early April a confidential source made two controlled purchases at Premier. The first purchase was $1,100 in powder cocaine bought from one of Mormon’s co-conspirators and the second was $1,200 in crack cocaine purchased from Mormon himself.A witness testified that she began buying drugs from Mormon in 2009, purchasing between 2 to 4.5 ounces of crack cocaine once a month from the summer of 2009 to the end of 2010. Beginning in early 2011, the witness estimated that she increased the size and frequency of her crack purchases from Mormon to two to three times a month, in quantities of up to 12 ounces each occasion.
In November 2012, after Mormon had been indicted and while he was serving a six month sentence for a violation of supervised release from a previous federal conviction, FBI agents visited Mormon in prison, and he agreed to speak with them. The agents testified at trial that Mormon told them he had one main supplier for his cocaine, who provided “pretty good” quality cocaine powder for $36,000 per kilogram. Mormon said he bought a half-kilogram at a time and would buy at least weekly and sometimes as often as daily from his supplier. According to the agent’s testimony, Mormon admitted to selling to between 20 and 30 different customers at Premier, and admitted that he occasionally stored drugs in customer vehicles parked outside.
United States Attorney Rod J. Rosenstein praised the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Adam K. Ake, who prosecuted the case.
Pomona Gang Member Pleads Guilty to Federal Weapons and Drug Offenses in Deal Expected to Bring Sentence of up to 17½ YearsRead the Press Release
LOS ANGELES – A Pomona man pleaded guilty today to a federal drug trafficking charge for possessing more than one-half pound of methamphetamine that he was planning to distribute.
Raymond Anthony Montanez, 24, pleaded guilty today to possession with intent to distribute methamphetamine and being a felon in possession of a firearm.
Montanez pleaded guilty before United States District Judge Philip S. Gutierrez, who is scheduled to sentence the defendant on February 10. As part of the plea agreement that led to this morning’s guilty pleas, prosecutors and Montanez agree that he will be sentenced to at least 10 years in federal prison and up to 17½ years in custody. The actual sentence will be determined by Judge Gutierrez next year.
Authorities recovered 243.7 grams of methamphetamine from Montanez’s residence on July 29, 2012 after he had shot himself in the leg and was brought to the hospital for treatment. Pomona Police Officers investigating the incident responded to his residence, recovered the weapon that Montanez used to shoot himself, found two other firearms, and discovered the narcotics.
The firearms charge relates to Montanez’s possession of a firearm on July 4, 2012. He prohibited from possessing any guns because was previously convicted of a felony in 2008 in state court of carrying a loaded handgun.
The case against Montanez is the result of an investigation by the San Gabriel Valley Safe Streets Gang Task Force, which is made up of agents and officers from the Federal Bureau of Investigation; the Pomona Police Department; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Los Angeles County Sheriff’s Department; and the California Department of Corrections and Rehabilitation.
Release No. 13-129
Pittsburgh Resident Sentenced for Heroin DistributionRead 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
Five Others Appear for Pleas and Sentencing
CLARKSBURG, WEST VIRGINIA – United States Attorney William J. Ihlenfeld, II, announced that a Pittsburgh, Pennsylvania, resident was sentenced to prison as a result of his conviction on a heroin distribution charge.
ANDRE ABRAM, age 32, of Pittsburgh, was sentenced by Judge Irene M. Keeley, to 30 months in prison and six years of supervised release for “Possession with Intent to Distribute Heroin within 1,000 Feet of Koupal Towers.” The Court also ordered the forfeiture of $3,376 in United States currency which constitutes proceeds obtained from the illegal activity. ABRAM was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Criminal Chief Shawn A. Morgan and investigated by the Greater Harrison County Drug & Violent Crimes Task Force, consisting of officers and agents from the Clarksburg Police Department, the Bridgeport Police Department, the West Virginia State Police, and the Drug Enforcement Administration. Investigative support for the task force is provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the U.S. Marshals Service, and the U.S. Postal Inspection Service.
ANTHONY LUCAS, age 24, an inmate at USP Hazelton was sentenced by Judge Keeley to an additional year in prison to run consecutive to his current 36-month sentence for “Possession of a Homemade Weapon” when staff at the institution searched LUCAS and found a homemade weapon or shank in his sock. The weapon was 8 1/2 inch long piece of metal sharpened to a point.
ALBERT MEIER, age 24, an inmate at USP Hazelton, was sentenced by Magistrate Judge John S. Kaull to three months in prison to run consecutive with his current 60-month sentence for “Possession of a Prohibited Object” on February 16, 2013, when staff observed MEIER talking on a cellphone and confiscated same.
These cases were investigated by the Special Investigative Services Staff at USP Hazelton.
ERIC ROBINSON, age 39, an inmate at FCI Gilmer entered a plea of guilty before Judge Keeley to “Possession of Marijuana” and was sentenced to four months in prison, to run consecutive with his current 48-month sentence. This case was investigated by the Special Investigative Services Staff at FCI Gilmer.
These cases were prosecuted by Assistant U.S. Attorney Brandon S. Flower.
LINDA BLAND, age 46, of Fairmont, West Virginia, and JANET POSEY, age 63, of Clarksburg, entered pleas of guilty, before Magistrate Judge Kaull, to “Receipt and Concealment of Embezzled Funds on Federal Property.” BLAND and POSEY, who are free on bond pending sentencing face up to 1 year in prison. These cases were prosecuted by Assistant U.S. Attorney Andrew R. Cogar and were investigated by the Department of Labor-Management Standards.
Pine Ridge Man Guilty of AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Alexander Winter, 27, of Pine Ridge, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy on November 14, 2013, and pled guilty to a charge of Assault by Striking, Beating, and Wounding.
The charge carries a maximum penalty upon conviction of 1 year of imprisonment and/or a $100,000 fine.
On March 18, 2013, Winter repeatedly punched a woman in the chest and face during an argument, causing contusions, bruises, a bloody nose, a black eye and a nasal fracture.
The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date was set for February 3, 2014. The defendant remained on bond pending sentencing.