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Wednesday 18 September 2013
Federal Jury Finds Clay County Man Guilty on Federal Child Pornography ChargesRead the Press Release
Jacksonville, FL - Acting U.S. Attorney A. Lee Bentley, III announced today that a federal jury found Melvin Hubert Holmes (52, Clay County) guilty of production and possession of child pornography. Holmes faces not less than 15 years and up to 30 years in prison on the production charge, and up to 10 years in prison on the possession charge. After the return of the jury verdict, Holmes was remanded to the custody of United States Marshals Service pending his sentencing hearing, which is scheduled for January 6, 2014.
According to testimony and evidence presented during trial, from March 10, 2012 through August 19, 2012, Holmes had installed a hidden video spy camera in several areas in a bathroom within his residence. On several occasions, Holmes used the camera to capture pornographic videos and images of a minor child. On August 23, 2012, partially covered holes in a sink vanity and in two walls that had housed the camera were discovered and the Clay County Sheriff's Office was contacted. During the investigation, several items were seized, including a laptop computer belonging to Holmes. A forensic analysis of the computer revealed several dozen images and videos depicting child pornography that were produced by Holmes.
This case was investigated by the Clay County Sheriff's Office and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Federal Jury Convicts Anthony, N.M., Man on Cocaine Trafficking ChargeRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces returned a guilty verdict this morning against Alejandro Lopez, 40, of Anthony, N.M., on a cocaine trafficking charge after a three-day trial. The guilty verdict was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Lt. Bobby Holden of the Las Cruces/Doña Ana County Metro Narcotics Agency.
Alejandro Lopez and his brother Eddy Lopez, 37, were arrested on Nov. 15, 2012, on a criminal complaint charging them with trafficking in cocaine. On March 29, 2013, Eddy Lopez entered a guilty plea to a felony information charging him with possession of cocaine with intent to distribute. Alejandro Lopez was indicted on that same charge on June 19, 2013.
Trial against Alejandro Lopez commenced on Sept. 16, 2013 and concluded this morning when the jury returned a verdict of guilty on the sole count of the indictment.
The evidence at trial established that in late Sept. 2012, a confidential informant (CI) working under the supervision of the FBI and the Las Cruces/ Doña Ana County Metro Narcotics Agency had several telephone conversations with Eddy Lopez during which the CI negotiated to facilitate the purchase of a kilogram of cocaine for $22,000 from Eddy Lopez on behalf of a buyer.
On Sept. 27, 2012, by prior arrangement, the CI met Eddy Lopez in a park in Anthony to complete the cocaine deal. Law enforcement officers conducted surveillance while Alejandro Lopez drove up in his truck, with Eddy Lopez as a passenger, and parked next to the CI’s vehicle. They observed Eddy Lopez take a package, which contained 794 grams of cocaine, from Alejandro Lopez’s truck and place it in the back seat of the CI’s vehicle. Eddy Lopez then told the CI that Alejandro Lopez would follow the CI as he delivered the cocaine to the buyer so that Alejandro Lopez could collect the $22,000 payment for the cocaine. After Alejandro Lopez dropped Eddy Lopez off at a nearby residence, he followed the CI’s vehicle until officers executed a traffic stop and arrested Alejandro Lopez on local charges. Shortly thereafter, other officers arrested Eddy Lopez also on local charges.
During the booking process, Alejandro Lopez made a post-arrest statement during which he admitted picking up the cocaine from a location near his brother’s residence and then picking up his brother before driving to the park where they met the CI. He also admitted that, after Eddy Lopez transferred the cocaine from his truck to the CI’s vehicle, he followed the CI for the purpose of collecting the proceeds from the drug deal. Alejandro Lopez acknowledged that he expected to be paid $100 for his participation in the drug deal.
Alejandro Lopez was remanded into federal custody after the jury returned its guilty verdict and he will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Alejandro Lopez faces a prison sentence of not less than five years and not more than 40 years followed by at least four years of supervised release. Because Alejandro Lopez is a resident alien, he will be deported to Mexico after he completes his prison sentence.
Eddy Lopez faces a similar prison sentence when he is sentenced. His sentencing hearing also has not yet been scheduled.
This case was investigated by the Las Cruces office of the FBI and the Las Cruces/Doña Ana County Metro Narcotics Agency. The case is being prosecuted by Assistant U.S. Attorneys Maria Y. Armijo and Edwin Garreth Winstead III of the U.S. Attorney’s Las Cruces Branch Office.
Farrell Man Charged with Robbing Local Convenience StoreRead the Press Release
PITTSBURGH – A Mercer County resident has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearms and robbery laws, United States Attorney David J. Hickton announced today.
The three-count indictment named Joshua Stewart, 20, of Farrell, Pa.
According to the indictment, on Dec. 20, 2011, Stewart, together with another person, robbed the B&M Market, a convenience store located in Farrell. The robbers stole cash and cigarettes from the market. During the robbery, the robbers carried, used and discharged a firearm.
The law provides for a maximum sentence of not less than 10 years and up to life in prison, and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Southwest Mercer County Regional Police, and the Mercer County District Attorney’s Office conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Essex County, N.J., Man Sentenced to 10 Years in Prison for Illegal Weapons DealingRead the Press Release
NEWARK, N.J. – An Essex County, N.J., man was sentenced today to 120 months in prison for weapons charges in connection with a year-long investigation by the FBI Safe Streets Task Force that led to the confiscation of 45 guns from the streets of Newark, East Orange and Irvington, U.S. Attorney Paul J. Fishman announced today.
Randy Andrew, 36, of Irvington, N.J., was previously convicted by a federal jury of one count each of trafficking firearms and conspiracy to traffic firearms and three counts of possession of a firearm by a convicted felon. The jury returned a verdict after a one-week trial before U.S. District Judge William Walls in Newark federal court.According to documents filed in this case and the evidence at trial:
Andrew and seven others (all of whom have since pleaded guilty) were arrested in 2011 on charges of trafficking in firearms without a license. The FBI Safe Streets Task Force led an operation – for more than a year – to recover firearms in an effort to stem gun violence and take weapons off the streets of Newark and surrounding areas. Agents directed and supervised a “sting operation” using a confidential informant to purchase firearms from illegal gun brokers and dealers. The operation yielded 45 illicit firearms, including several assault rifles, machine pistols, shotguns and semi-automatic handguns.
Andrew was selling firearms out of a laundromat in Irvington. On five separate occasions between May and July 2010, he met with the informant to discuss the purchase of assault weapons. On May 10 and 19 and June 9, 2010, Andrew sold firearms to the informant. On June 1 and July 12, 2010, he attempted to sell assault weapons to the informant, but his supplier could not provide the guns.
In addition to the prison term, Judge Walls sentenced Andrew to serve two years of supervised release.
U.S. Attorney Fishman credited the FBI special agents and local detectives and investigators from the FBI’s Safe Streets Task Force, which operates under the direction of FBI Special Agent in Charge Aaron T. Ford in Newark, with the investigation. The Safe Streets Task Force comprises the FBI, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the Essex County Corrections Department and the Newark, East Orange and Jersey City Police Departments.
The government is represented by Assistant U.S. Attorneys Adam N. Subervi and Amy D. Luria of the U.S. Attorney’s Office Criminal Division.
13-378Defense counsel: Paul Casteleiro Esq., Hoboken, N.J.
Elmira Man Sentenced to on Gun and Drug ChargesRead the Press Release
ROCHESTER, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Shawn Rickard, 39, of Elmira, N.Y., who was convicted following of conspiracy to manufacture 500 grams or more of methamphetamine and possession of firearms in the furtherance of drug trafficking activities, was sentenced to 97 months in prison, and five years supervised release by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated that Shawn Rickard, together with co-conspirators Chad Speicher and John Barton and others, conspired to manufacture 500 grams or more of a mixture containing methamphetamine in Millport in Schuyler County, N.Y., between 2009 and May, 2011.
On May 18, 2011, members of the New York State Police, Schuyler County Sheriff’s Office, Schuyler County District Attorney’s Office, Village of Watkins Glen Police Department and the Drug Enforcement Administration executed a state court-authorized search warrant at John Barton’s residence based on an ongoing investigation by these agencies. In a shed on Barton’s property, law enforcement officers discovered an active methamphetamine laboratory which was in the process of producing methamphetamine, as well as methamphetamine and powder substances which tested positive for the presence of methamphetamine and pseudoephedrine. In the same shed, law enforcement officers also recovered multiple firearms, one of which was a handgun which officers located in Barton’s backpack, along with methamphetamine and over $8,000 in U.S. Currency. Officers also recovered marijuana from the house located on the property as well.
John Barton was convicted of similar charges following a jury trial in June 2013 and will be sentenced on September 24, 2013. Chad Speicher was convicted in January 2012 and will be sentenced on September 25, 2013.
The sentencing is the culmination of an investigation on the part of the Schuyler County District Attorney’s Office, under the direction of District Attorney Joseph Fazzary, Special Agents of the Drug Enforcement Administration, under the direction of Resident Agent in Charge Brian R. Crowell, New York Field Division, the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Wayne C. Olson, the Schuyler County Sheriff’s Department, under the direction of Sheriff William Yessman, and the Watkins Glen Police Department, under the direction of Chief Thomas R. Struble.Eagle Butte Woman Convicted of Assault by Striking, Beating and WoundingRead the Press Release
United States Attorney Brendan V. Johnson announced that Wicahpi Collins Holy, a/k/a Star Collins, age 20, of Eagle Butte, South Dakota, appeared before U.S. District Magistrate Judge Mark A. Moreno on September 16, 2013, and pled guilty to a Superseding Information that charged her with two counts of Assault by Striking, Beating and Wounding.
A presentence investigation was ordered, and a sentencing date was set for November 12, 2013. Collins was released on bond pending sentencing.
The maximum penalty upon conviction is 6 months in custody, a $5,000 fine, restitution, and a $10 assessment to the Federal Crime Victims Fund for each count.
The charge relates to a November 2012 incident in which Collins, along with her co-defendant, assaulted a man at a house party in Eagle Butte.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.
Detroit Carjacking Ring Dismantled by Conspiracy ConvictionRead the Press Release
Two Detroit men and a Redford Township man were found guilty yesterday by a federal jury in Detroit on 20 counts in a case involving armed carjacking to support a chop shop, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Acting Special Agent in Charge John Robert Shoup, Federal Bureau of Investigation, Chief James Craig, Detroit Police Department, Colonel Kriste Kibbey Etue, Director, Michigan State Police and William Hayes, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
The jury convicted Frank Harper, 29, of Detroit, Phillip Harper, 25, of Detroit and Bernard Edmond, 46, of Redford Township. The three-week trial was conducted before U.S. District Judge George Caram Steeh.The evidence presented at trial established that the defendants conspired with several others to steal high-end vehicles, many by committing armed carjacking, and then to retag the vehicles for sale. Edmond would purchase the stolen vehicles from the Harper brothers and others after the thefts. He would then alter the vehicle identification number of the stolen vehicles to conceal the fact that the vehicles had been stolen. Edmond would also create false documents to file with the Secretary of State, then sell the vehicles to unwitting buyers in Michigan and other states. Edmond created a market for the stolen vehicles by informing the Harpers and others of his desire to buy these stolen vehicles.
The Harper brothers committed several carjackings and other auto thefts. For example, on October 14, 2010, Phillip Harper and others brandished firearms to steal a Cadillac Escalade, a GMC Yukon, a Chyrsler Aspen, and a Mercury Milan from the Elysium Night Club in downtown Detroit. On January 25, 2011, Frank Harper and others carjacked a Mercedes S550 from a person at the intersection of Atwater and Joseph Campau streets in Detroit. On January 31, 2011, the Harper brothers and another used a firearm to carjack three vehicles from a person on Joseph Campau Street in Detroit. On February 22, 2011, the Harper brothers and others carjacked three high-end vehicles from the valet at Opus One restaurant in Detroit. On March 20, 2011, Philip Harper and others carjacked a Lexus 460 near Club Vain in Detroit. Many of these and other vehicles were intended for Bernard Edmund to retag and sell.
Co-defendants Justin Bowman, Stratford Newton, and Darrell Young have each pleaded guilty to their roles in the conspiracy and are awaiting sentencing.
Phillip Harper faces a mandatory minimum sentence of eighty years in federal prison and Frank Harper and Bernard Edmond are facing a mandatory minimum sentence of fifty-five years in federal prison.
A sentencing date will be set by the court.
U.S. Attorney McQuade said, "Armed carjacking poses an unacceptable danger to public safety and creates a climate of fear for residents in our community. Although these convictions bring with them severe sentences, we think they are appropriate for such serious and pervasive crimes. We hope that these convictions will deter others from committing similar crimes that wreak havoc in our neighborhoods."
Acting FBI Special Agent in Charge Shoup said, “This case stands as a superb example of the fine collaborative work being done by the FBI, Homeland Security Investigations, and the Detroit Police Department. FBI thanks the Assistant United States Attorneys who handled this case for the excellent work that they did in bringing justice to those who would prey on our society.”Chief Craig stated, “Thank you to all involved who dismantled this Detroit carjacking ring. This is another opportunity for the Detroit Police Department to work with our partners to help reduce carjacking crimes, which is one of the department’s top priorities.”
The case was investigated by Special Agents of the FBI, officers of the Detroit Police Department, Michigan State Police and Homeland Security Investigations.
Davenport Man Pleads Guilty to Wire Fraud and Money LaunderingRead the Press Release
Davenport, Iowa - On September 17, 2013, Charles Arthur Ruhl, Jr., age 59, of Davenport, Iowa, pled guilty pursuant to a plea agreement to one count of wire fraud and one count of money laundering, announced United States Attorney Nicholas A. Klinefeldt. Ruhl will appear for sentencing at the United States Courthouse in Davenport, Iowa, on a date to be determined. As part of the plea agreement, Ruhl and the government jointly recommended that Ruhl be sentenced to a term of imprisonment somewhere within the range of one day and twenty-four months.
From the end of 2008 through early 2012, Ruhl engaged in a scheme and artifice to defraud, by unlawfully withdrawing funds from several limited liability companies that he managed, including Lincoln Healthcare Building, LLC, Caxton on Bass St., LLC, Biaggi’s West Des Moines, LLC, and Crow Valley Park Venture, LLC. In total Ruhl unlawfully withdrew approximately $1.3 million from these entities’ accounts. Ruhl then spent the money on Ruhl & Ruhl Commercial expenses and personal expenses. Ruhl concealed his fraud by directing his chief financial officers to omit his withdrawals from financial statements provided to the investors or to enter false deposits on the statements to offset his withdrawals. These doctored statements showed large cash balances when in actuality the balances were depleted because of Ruhl’s withdrawals. Ruhl directed Ruhl & Ruhl Commercial property managers to distribute the doctored financial statements to the investors/members of the involved LLCs. Ruhl and his staff created notes payable to document the withdrawals. Some of these notes were not created and/or signed until well after Ruhl had withdrawn the funds documented in the notes. None of the notes payable had been disclosed to the other members of the LLC’s at the time they were created.
On January 15 and January 17, 2011, Ruhl directed an employee of Ruhl & Ruhl commercial to email financial statements to the investors/members of the Lincoln Healthcare LLC. Ruhl knew that the emails contained false financial statements for the Lincoln tax escrow account. The financial statements had been altered at Ruhl’s direction to conceal his withdrawals of $75,000 from the account over the time period reflected in the statements. The statements also misrepresented and inflated the ending balance in the tax escrow account to conceal Ruhl’s withdrawals. Ruhl directed the transmittal of the altered statements via interstate wire facilities in furtherance of his scheme to defraud and with the intent to defraud.
Ruhl engaged in multiple financial transactions involving the proceeds of his wire fraud scheme. As part of the wire fraud scheme, on or about August 3, 2010, Ruhl directed Ruhl & Ruhl Commercial employees to issue a check drawn on the Lincoln Healthcare tax escrow account at Wells Fargo bank, made out to Ruhl personally for $47,000. Ruhl deposited the check or caused the deposit of the check into his personal account at U.S. Bank. Ruhl deposited the check or caused the deposit of the check with the intent to defraud and in furtherance of his wire fraud scheme to defraud the members/investors of Lincoln Healthcare LLC.
Ruhl’s personal account balance was approximately $350 as of August 3, 2010, the date of the $47,000 deposit. Ruhl deposited the $47,000 check for the purpose of paying property taxes on a personal vacation home in Gogebic County, Michigan. On August 4, 2010, a check written by Ruhl to the Gogebic County treasurer was processed in the amount of $46,735.10. The check would not have cleared if it were not for Ruhl’s deposit of Lincoln funds into his account on August 3, 2010. Ruhl engaged in the payment of his Michigan property taxes via check knowing that the transaction involved the proceeds of a criminal offense, wire fraud. Since the financial transaction involved property of a value greater than $10,000 derived from wire fraud, the financial transaction violated Section 1957 of Title 18 of the United States Code.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation, and the case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
DOJ and the Eastern and Western Districts of Michigan U.S. Attorneys Respond to New Michigan Limited English Proficiency Court RuleRead the Press Release
The letter addressed to the Michigan Supreme Court is attached below.
2013_0917_AAG_LetterMi_CourtRule111
Corrupt Border Patrol Agent Sentenced to Five Years in PrisonRead the Press Release
PHOENIX – On Sept. 16, 2013, Border Patrol Agent Aaron Anaya, 26, of Yuma, Ariz., was sentenced by U.S. District Court Judge Roslyn O. Silverto 60 months in prison. Anaya pleaded guilty to possession of a firearm in furtherance of a drug trafficking offense on April 10, 2013.
“Stopping employee corruption is the OIG's highest priority,” said Paul Leonard, Special Agent in Charge of the Department of Homeland Security, Office of the Inspector General. “We have zero tolerance for those who violate their oath of office and the American public's trust.”
Douglas G. Price, FBI Special Agent in Charge, Phoenix Division, stated, “Whenever a law enforcement officer engages in illegal activity it erodes the public trust. The actions of a few tarnish the badge of those who protect us each day from harm’s way. Corruption by public officials at all levels is a top priority of the FBI and we remain committed to holding corrupt law enforcement officers accountable for their illegal actions.”
On the evening of Dec. 2, 2012, Anaya was driving a fully marked U.S. Border Patrol vehicle and was on duty in his capacity as a Border Patrol Agent patrolling the U.S. international boundary with Mexico. Anaya stopped along the fence line, exited his USBP vehicle and assisted three individuals on the Mexican side of the border in bringing large bales of marijuana over the fence and into the United States. A total of six bales were placed in the vehicle with a combined weight of 146.9 pounds.
That same evening, Anaya’s vehicle, with the marijuana bales inside, was stopped by law enforcement and Anaya was arrested. At the time of his arrest, Anaya was wearing a USBP- issued uniform and had his service-issued firearm secured in his holster. A USBP-owned automatic rifle was in the front passenger compartment of Anaya=s USBP vehicle as well. Anaya admitted at his change of plea proceeding that he would have utilized one or both of the firearms, if necessary, to protect himself and the marijuana from rival drug traffickers if rival drug traffickers had sought to steal the marijuana before he delivered it to its next destination.
The investigation in this case was conducted by the U.S. Department of Homeland Security, Office of the Inspector General, and the Federal Bureau of Investigation. The prosecution was handled by Howard D. Sukenic and Christina W. Covault, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-2056-PHX-ROS
RELEASE NUMBER: 2013-074_AnayaFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Contractor Admits Paying Bribe to Get Federal ContractsRead the Press Release
CAMDEN, N.J. – A principal of a Pennsylvania construction company pleaded guilty today to paying bribes to the representative of a general contractor to secure contracts for federally subsidized construction projects in New Jersey and Pennsylvania, U.S. Attorney Paul J. Fishman announced today.
Alex Rabinovich, 57, of Richboro, Pa., pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to Count Four of an eight-count indictment, which charged a conspiracy to make payoffs to a contractor’s representative for receiving favorable treatment when bidding on federal construction projects.
According documents filed in this case and statements made in court:
The defendant and his conspirators were charged with paying cash to a prime contractor’s representative to improperly obtain subcontracts on federally funded construction projects. Between November 2009 and January 2013, Rabinovich and other conspirators paid a Philadelphia contractor’s representative to get “last looks” at other competitors’ bids. This allowed Sands Mechanical of Bristol, Pa., to successfully underbid other subcontractors. A total of $46,200 in bribes/kickbacks was owed for 10 subcontracts awarded to Sands Mechanical. By the summer of 2012, approximately $15,000 was still outstanding for the last two contracts. On two occasions, in November and December 2012, Rabinovich was caught on videotape giving a total of $4,156 in cash to the contractor’s representative to pay down the amounts still due and owing.
Conspiracy to bribe a prime contractor is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 8, 2014.
Seven other defendants have previously pleaded guilty to various charges in the indictment ranging from collecting kickbacks, arson and aggravated assault.
Fishman credited special agents of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent-in-Charge Cheryl Garcia; the Department of Labor-Wage and Hour Division, under the direction of George Ference, regional administrator; Naval Criminal Investigative Service, under the direction of Assistant Special Agent in Charge Jeremy Gauthier, Northeast field office; and the Air Force Office of Special Investigations, under the direction of Special Agent Seth Neville, Detachment Commander, Joint Base McGuire-Dix-Lakehurst with the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
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Defense counsel: Lawrence Krasner Esq., Philadelphia
Rabinovich Indictment
Commercial Fisherman Charged with Witness Tampering Related to an Investigation into the Illegal Harvesting of Striped BassRead the Press Release
Michael D. Hayden Jr., 41, of Tilghman’s Island, Md., was arrested yesterday on charges of witness tampering and retaliation in connection with an investigation of felony Lacey Act violations related to the illegal harvesting of striped bass from the Chesapeake Bay.The charges were announced by U.S. Attorney for the District of Maryland Rod J. Rosenstein; Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division; Regional Special Agent in Charge Honora Gordon of the U.S. Fish and Wildlife Service, Office of Law Enforcement; and Joseph P. Gill, Secretary of the Maryland Department of Natural Resources.
According to the affidavit filed in support of the criminal complaint, Hayden is a commercial fisherman licensed in the state of Maryland and operates commercial fishing vessels on the Chesapeake Bay. During an investigation of the illegal harvesting of striped bass from the Chesapeake Bay, agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement and the Maryland Natural Resources Police learned that Hayden allegedly attempted to manipulate some witnesses’ testimony while trying to prevent the testimony of others. The criminal complaint alleges that in at least one incident, Hayden threatened to retaliate against a potential witness he believed to be cooperating with investigators.
If convicted, Hayden faces a maximum sentence of 20 years in prison on each of four counts of witness tampering and witness retaliation. Hayden is expected to have an initial appearance in U.S. District Court in Baltimore today.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
U.S. Attorney Rosenstein and Acting Assistant Attorney General Dreher thanked the Maryland Department of Natural Resources Police and the United States Fish and Wildlife Service for their work in the investigation and the United States Marshals Service for executing the arrest. The case is being jointly prosecuted by the U.S. Attorney’s Office for the District of Maryland and the Environmental Crimes Section of the United States Department of Justice.
Commercial Fisherman Charged with Witness Tampering Related to an Investigation into the Illegal Harvesting of Striped BassRead the Press Release
Baltimore, Maryland - Michael D. Hayden, Jr., age 41, of Tilghman Island, Maryland, was arrested yesterday on charges of witness tampering and retaliation in connection with an investigation of felony Lacey Act violations related to the illegal harvesting of striped bass from the Chesapeake Bay.The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division; Regional Special Agent in Charge Honora Gordon of the U.S. Fish and Wildlife Service, Office of Law Enforcement; and Joseph P. Gill, Secretary of the Maryland Department of Natural Resources.
“Stealing striped bass and intimidating witnesses are crimes against our natural resources and against the citizens of Maryland,” said Department of Natural Resources Secretary Joseph P. Gill. “We are grateful for the partnership of law enforcement agencies and we thank our residents for coming forward and providing information to help us protect the public trust.”
According to the affidavit filed in support of the criminal complaint, Hayden is a commercial fisherman, licensed in the state of Maryland and operates commercial fishing vessels on the Chesapeake Bay. During an investigation of the illegal harvesting of striped bass from the Chesapeake Bay, agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement, and the Maryland Natural Resources Police learned that Hayden allegedly attempted to manipulate some witnesses’ testimony while trying to prevent the testimony of others. The criminal complaint alleges that in at least one incident, Hayden threatened to retaliate against a potential witness he believed to be cooperating with investigators.
If convicted, Hayden faces a maximum sentence of 20 years in prison on each of four counts of witness tampering and witness retaliation. Hayden is scheduled to have an initial appearance in U.S. District Court in Baltimore today at 3:00 p.m.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
Mr. Rosenstein and Mr. Dreher thanked the Maryland Department of Natural Resources Police and the United States Fish and Wildlife Service for their work in the investigation and the United States Marshals Service for executing the arrest warrant. The case is being jointly prosecuted by the U.S. Attorney’s Office for the District of Maryland and the Environmental Crimes Section of the United States Department of Justice.
Civilian Government Worker Admits to Receiving Pay for Hours He Did Not WorkRead the Press Release
“Cautionary Tale for Government Employees Who Work at Home”
Greenbelt, Maryland – Jack Raymond Kimble, Jr., age 40, of Sykesville, Maryland pleaded guilty today to using false documents in a matter of the U.S. government.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael T. Monroe of the Naval Criminal Investigative Service (NCIS), Washington Field Office.“Supervisors who are obligated to certify electronic timesheets of subordinates who work outside the office often trust the employees to record the time spent doing their jobs,” said U.S. Attorney Rod J. Rosenstein. “This case is a cautionary tale for government employees who work at home and are trusted to self-report their working hours.”
According to his plea agreement, from 2009 to February 2012, Kimble worked as a civilian employee for the U.S. Navy in the Continuity of Operations Program (COOP) at the Office of Naval Intelligence (ONI) in Suitland, Maryland. Kimble oversaw and directed the ONI COOP and Disaster Recovery Plans. He assisted the ONI director and deputy with planning and implementing new technologies that affected ONI commands.Kimble regularly did not come in to his office in Suitland on Mondays and Fridays. His supervisors often did not know where Kimble was. They directed Kimble to use the Navy’s web-based time and attendance system to calculate leave balances accurately. Kimble often called or emailed coworkers and told them he would not be at work, but failed to enter that information into the time and attendance system.
In the spring of 2011, the NCIS began investigating Kimble’s work hours and requested documentation of his working hours. In April 2011, Kimble gave false documents to investigators which claimed that: he personally conducted two tests of communication systems when in fact the tests were done by another individual; and falsified the minutes of three meetings reflecting his attendance when in fact he was not present at the meetings.
Matching up the times that Kimble’s whereabouts were unknown, plus reimbursements for government travel when Kimble did not show up when he was supposed to be working off-site, from the beginning of 2009 to February 2012, Kimble was paid $52,822.09 to which he was not entitled.
Kimble faces a maximum sentence of five years in prison and a fine of $250,000. Kimble has agreed to pay restitution of $52,822.09. Chief U.S. District Judge Deborah K. Chasanow scheduled sentencing for January 6, 2014 at 3:00 p.m.
United States Attorney Rod J. Rosenstein praised the NCIS for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Hollis Raphael Weisman and Special Assistant U.S. Attorney Molly Thebes, who are prosecuting the case.Cahokia Woman Indicted for Stealing Funds from Department of Veterans AffairsRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Mary Lee Owens, 53, of Cahokia, was indicted by the federal grand jury at the East St. Louis federal courthouse on charges that she stole pension benefits from the United States Department of Veterans Affairs.
The indictment alleges that from November 2004 through April 2013, Owens fraudulently obtained monies which were in excess of $1,000.00, belonging to the United States Department of Veterans Affairs, an agency of the United States, by concealing her employment status in order to receive unemployment benefits. The charge carries a maximum penalty of 10 years in prison, a $250,000 fine, and up to 3 years of supervised release.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
The case was investigated by agents of the Department of Veterans Affairs, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
Branford Man Admits Defrauding Investors Out of More Than $2 MillionRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JUAN JOSE ALVAREZ DE LUGO AZPURUA, 53, of Branford, waived his right to indictment and pleaded guilty today before Senior U.S. District Judge Warren W. Eginton in Bridgeport to one count of wire fraud stemming from his operation of a real estate investment scheme that defrauded individuals out of more than $2 million.
According to court documents and statements made in court, ALVAREZ DE LUGO held himself out as the president of multiple successful businesses specializing in real estate development programs. ALVAREZ DE LUGO represented to victim investors that his business was acquiring houses from the City of New Haven and from local banks, which houses would be remodeled and sold, and that invested funds would be used for this project. At times, ALVAREZ DE LUGO represented to victim investors that he was working jointly with New Haven on the Livable City Initiative, and he stated that the remodeled homes would be used and occupied by low income families that secured financing from a local bank and State of Connecticut agencies. ALVAREZ DE LUGO also told investors that he was developing a senior housing facility in New Haven. ALVAREZ DE LUGO provided investors with Promissory Notes and other documentation that promised to pay investors interest of 20 percent per year, and a full return of principal in one year.
In pleading guilty, ALVAREZ DE LUGO admitted that the representations he made to victims were materially false, and that he did not invest his victims’ money as promised. He did not own and develop the large number of properties he represented to investors, and he had no relationship with the City of New Haven or the State of Connecticut. ALVAREZ DE LUGO spent investment money on his own personal expenses, and enriched himself and his relatives.
Between approximately 2005 and 2010, ALVAREZ DE LUGO defrauded more than 10 victims out of least $2 million.
ALVAREZ DE LUGO’s three companies, Arquin Decoraciones LLC, Arquin Development LLC, and Juko Investments, LLC, and the investment instruments he provided, were never registered with the Securities and Exchange Commission or Connecticut Department of Banking.
Judge Eginton has scheduled sentencing for December 11, 2013, at which time ALVAREZ DE LUGO faces a maximum term of imprisonment of 20 years.
ALVAREZ DE LUGO has been detained since January 18, 2013, when he was arrested on a federal criminal complaint.
This matter is being investigated by the Federal Bureau of Investigation with the assistance of the State of Connecticut Department of Banking. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Beaver County Man Conspired to Distribute “Designer” DrugsRead the Press Release
PITTSBURGH- A Beaver County man pleaded guilty in federal court to charges of violating various narcotic laws, United States Attorney David J. Hickton announced today.
Ryan John Konarski, 26, formerly of New Brighton, PA pleaded guilty to three counts before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that from November 2010 to March 12, 2011, Konarski conspired with others to possess with intent to distribute the controlled substance analogue 3,4 methylenedioxymethcathinone, also commonly known as methylone,"bath salts" or "Molly." The government alleged that Konarski and Michael Stokes maintained a drug involved premises for purposes of distributing and using the analogue, while Stokes imported "Molly" into the United States from China.
Since drug suppliers have tried to avoid prosecution in the past by making minor changes in the chemical structures of controlled substances, Congress created the Controlled Substance Analogue Enforcement Act of 1986. This Act makes these chemically-altered "designer" drugs illegal if they are intended for human consumption and resemble a controlled substance in molecular structure as well as actual or purported physiological effects.
Judge Fischer scheduled sentencing for Jan. 16, 2014 at 9:00 AM. The law provides for a total sentence of 60 years in prison, a fine of $2,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the New Brighton Police Department conducted the investigation that led to the prosecution of Konarski.
Atlantic City Man Admits Conspiring with Alleged Members of Organized Crime Family and Others in Fraud SchemeRead the Press Release
CAMDEN, N.J. – An Atlantic City, N.J., man admitted he conspired to defraud FirstPlus Financial Group Inc. (FPFG), a Texas-based financial services company allegedly targeted for extortionate takeover and looting by a group led by alleged Lucchese organized crime family member Nicodemo S. Scarfo, U.S. Attorney Paul J. Fishman announced.
John Parisi, 52, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to a superseding information charging him with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
Parisi and 12 others – including his cousin, Nicodemo S. Scarfo, an alleged member of the Lucchese La Cosa Nostra (LCN) crime family, and Salvatore Pelullo, an alleged associate of the Lucchese and Philadelphia LCN families – were variously charged in a November 2011 indictment with a racketeering conspiracy, including acts of securities fraud, wire fraud, mail fraud, bank fraud, extortion, interstate travel in aid of racketeering, money laundering and obstruction of justice. The indictment charged that FPFG was targeted for extortionate takeover and looting by a group of the conspirators. A substantial part of the enterprise’s activities occurred in New Jersey, including communications and the transfer of money into and out of the state. John Parisi admitted that he joined the conspiracy in April 2007.
Parisi managed a family trust and a limited liability company on behalf of Scarfo as part of the scheme to defraud FPFG. Parisi said Scarfo, his cousin, directed Parisi in the use of various bank accounts through which Scarfo received hundreds of thousands of dollars between July 2007 and April 2008 as part of the scheme. As alleged in the indictment, the money involved proceeds of the fraud that Scarfo allegedly received as part of a fraudulent “consulting” agreement between his shell company, Learned Associates, and one controlled by Pelullo. The money also involved proceeds received from the fraudulent sale of Scarfo and Pelullo’s worthless companies to FPFG in 2007. The receipt of the fraudulent proceeds often occurred in the form of wire transfers from accounts in Pennsylvania to accounts in New Jersey.
Parisi also said that beginning in February 2008 he assisted Scarfo and his then-fiancée, Lisa Marie Scarfo, obtain a mortgage for a $715,000 house in Egg Harbor Township, N.J., that the Scarfos intended to purchase. Lisa Marie Scarfo pleaded guilty on Sept. 17, 2013, to a conspiracy to make a false mortgage loan application in connection with the purchase of the Egg Harbor Township house.
Scarfo, Pelullo, and six other defendants charged in November 2011 – including attorneys William Maxwell, Cory Leshner, David Adler, Gary McCarthy, and Donald Manno, as well as John Maxwell – are scheduled for trial beginning Oct. 28, 2013. Todd Stark, also charged in the indictment, previously pleaded guilty to providing ammunition to Scarfo and Pelullo, convicted felons.
The conspiracy count to which Parisi pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 17, 2014.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, New York Region; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Thomas J. Cannon in Newark. He also thanked the FBI under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia for its vital assistance and the U.S. Securities and Exchange Commission for its role.
The government is represented by Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener, of the New Jersey U.S. Attorney’s Office Organized Crime/Gangs Unit and Criminal Division in Camden, and Trial Attorney Adam Small of the Organized Crime and Gang Section of the Justice Department’s Criminal Division.
With respect to the defendants awaiting trial, the charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
13-381Defense counsel: Lisa Evans Lewis Esq., Camden
Parisi, John Superseding Information
Area Agencies Will Share $1 Million Grant to Combat Human TraffickingRead the Press Release
St. Louis, MO – The Saint Louis County Police Department and St. Charles County Sheriff’s Department will share the proceeds of a $1 million U.S. Department of Justice grant with three local social service providers to serve victims and enhance the prosecution of human trafficking crimes in the Eastern District of Missouri. These two law enforcement agencies are members of the U.S Attorney’s Office Human Trafficking Task Force in the Eastern District of Missouri. The Task Force also includes local civilian social service partners, known as the RESTeam (Rescue Service Team).
The Saint Louis-based International Institute, Legal Services of Eastern Missouri and the YWCA Sexual Assault Center are the three RESTeam members who joined forces with the Saint Louis County Police Department and St. Charles County Sheriff’s Department to apply for this competitive award, which was sponsored by the DOJ Office of Victims of Crime and the Bureau of Justice Assistance. The funds will be distributed over two years.
The 2013 grant, which is called the Enhanced Collaborative Model to Combat Human Trafficking, was established in 2010 and was awarded this year to only six applicant groups across the United States. This year is the first time that recipients from the Eastern District of Missouri have been chosen to receive the grant.“With these funds, we will be able to serve up to 150 victims of human trafficking, whether they are victims of sex or labor trafficking and whether they are U.S. citizens or foreign-born. We look forward to collaborating with our law enforcement partners to more effectively serve victims of these crimes and support prosecution of the traffickers,” said Suzanne LeLaurin, Senior Vice-President for Individuals and Families,International Institute of St. Louis.
“The St. Louis County Police Department along with the St. Charles County Sheriff's Department have been battling the issues of human trafficking in the St. Louis County/ St. Charles County area for several years and have been successful in rescuing adult and child victims of trafficking,” said Sergeant Adam Kavanaugh, Deputy Commander Missouri Internet Crimes Against Children Task Force. Kavanaugh added that these funds will be used to add local police personnel and more training for local law enforcement to better identify the indicators of human trafficking in our area.
Lieutenant Chris Mateja of the St. Charles County Sheriff's Department said, “The St. Louis County Police Department and St. Charles County Sheriff's Department will work closely with our federal partners to insure that traffickers do not find a safe haven in the Eastern District of Missouri.”
Tuesday 17 September 2013
Youngstown Man Faces Heroin Distribution ChargeRead the Press Release
A Youngstown man was indicted today on charges of possession with intent to distribute heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
On Aug. 17, 2013, Santos R. Rivera, age 47, possessed more than 100 grams of heroin, which amount is indicative of heroin trafficking, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration and the Ohio Highway State Patrol. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Worcester Man Sentenced for Solicitation to Kidnap A ChildDungeon Discussed in Online Chats Discovered in Defendant’s BasementRead the Press Release
BOSTON – Geoffrey Portway, 40, a citizen of the United Kingdom and most recently of Worcester, Mass., was sentenced today in U.S. District Court in Worcester for solicitation to commit a crime of violence (kidnaping of a child), distribution and possession of child pornography.
In accordance with a plea agreement signed in May 2013, Portway was sentenced by U.S. District Judge Timothy S. Hillman to 320 months in prison and a lifetime of supervised release. He was also ordered to pay $3,000 in restitution to each of the five victims identified. Additionally, Portway faces deportation to the United Kingdom following release from prison.
“The facts of this case are disturbing and alarming. I applaud our law enforcement partners for aggressively tracking down the defendant and others that share his perverse desires,” said United States Attorney Carmen M. Ortiz. “The sentence Mr. Portway received today sends the message that the Department of Justice will ardently pursue those who exploit children, the most vulnerable, innocent and impressionable population of our country. Thanks to the dedication and coordination of local, state and federal law enforcement, there is not a place in the United States, or on the Internet, where these predators can hide.”
“Mr. Portway made his intentions explicitly clear in online conversations with depraved likeminded individuals. The sophisticated child torture chamber he built in his basement also clearly demonstrated his strong desires to ensnare a child victim,” said Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston. “There is no doubt in my mind that given the right set of circumstances, Mr. Portway would have acted on those perverse urges. Fortunately, as a result of today’s significant sentence, he will never have an opportunity to pursue his sordid desires. I commend the exceptional work of the HSI special agents, federal prosecutors and the many other law enforcement partners who contributed to Operation Holitna’s overwhelming success in rescuing some 167 child victims and the arrest of 54 predators worldwide. ”Portway engaged in numerous chats with many individuals about a mutual interest in abducting, raping, murdering, and eating children. Many of these conversations were accompanied by the trading of child pornography and other images of children relevant to these interests. These chats also included images of different real children, accompanied by discussions of desires to sexual abuse and murder and cannibalize those children know to those chatting.
Portway solicited several people for their help in abducting a child, predominately from Michael Arnett of Kansas. At least as early as 2010, Portway utilized Skype and other programs to communicate with Arnett, trading child pornography and images of injured, mutilated and deceased children while chatting about the sexual abuse, rape, abduction, murder, and cannibalism of children. Over months, Portway repeatedly solicited Arnett to kidnap a child for him, with the intent that Portway would ultimately rape, kill and eat that child. These solicitations for help abducting a child included discussing real children, by name and photo, which Arnett claimed to know and have access. In the chats, Portway and Arnett discuss different ways to kidnap children and the age range that Portway prefers. During the time that Portway was soliciting Arnett, he had been told that Arnett had helped others with such requests before and that he had experience with the abduction and sexual abuse of children. Arnett has since pleaded guilty in Kansas to the sexual exploitation of a child for the purposes of producing child pornography.
On July 27, 2012, federal agents along with state and local police, executed a federal search warrant at Portway’s Worcester home. Various computers and digital devices containing Portway’s child pornography collection were seized, in addition to the computer he used to trade child photography and attempt to plan the abduction of a child.
During the execution of the search warrant, agents also discovered a locked door in the basement of the residence. Inside the door was a sally port that led to a second door (with a keyed lock). Inside the second door was a dungeon, which was lined with acoustical sound-deadening material and contained a chair, television, and what appeared to be cable access to the internet. Also located in this room were a child-sized homemade coffin (with large speakers covered in wire mesh at one end) with exterior locking devices, a steel cage (approximately 3' wide, 2' high and 4' long) with multiple locking devices, and a steel table top (with steel rings at 6 points, presumably for restraints). Outside these rooms were a cabinet freezer, an upright freezer, disposable scalpels, butchering kits, and castration tools. This dungeon was described in detail by Portway in recovered chats as a place he intended to use to keep kidnaped children while he sexually abused them and as a place to eventually murder and cannibalize the children.A forensic examination of the computers uncovered evidence of over 4,500 trades of child pornography between Portway and others. Many of these trades involved Portway distributing child pornography to others based on their stated specific preferences, including images and videos appearing to depict dead children and the cannibalism of children.
U.S. Attorney Ortiz; SAC Foucart; Worcester County District Attorney Joseph Early; Colonel Timothy Alben, Superintendent of the Massachusetts State Police; and Chief Gary J. Gemme of the Worcester Police Department made the announcement today. The case was prosecuted by Assistant U.S. Attorney Stacy Dawson Belf of Ortiz’s Major Crimes Unit. The U.S. Attorney’s Office wishes to thank the Massachusetts State Police forensics troopers and detectives assigned to the Worcester County District Attorney’s Office as well as the detectives from the Worcester Police Department for their key assistance during the investigation.
This case is being brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/
Wife of Nicodemo S. Scarfo Admits Conspiring with Him and Others to Defraud A Mortgage Lender to Buy Their HouseRead the Press Release
CAMDEN, N.J. – The wife of a reputed mob figure today admitted she conspired to defraud a mortgage lender in order to buy a $715,000 house in Egg Harbor Township, N.J., U.S. Attorney Paul J. Fishman and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division announced.
Lisa Marie Scarfo, 34, of Elmer, N.J., pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to a superseding information charging her with conspiracy to make false statements for the purpose of influencing the actions of the bank on her mortgage loan application.
According to documents filed in this case and statements made in court:
In November 2011, Lisa Marie Scarfo and 12 others – including her husband, Nicodemo S. Scarfo, an alleged member of the Lucchese La Cosa Nostra (LCN) crime family, and Salvatore Pelullo, an alleged associate of the Lucchese and Philadelphia LCN families – were variously charged in a 25-count indictment with a racketeering conspiracy including acts of securities fraud, wire fraud, mail fraud, bank fraud, extortion, interstate travel in aid of racketeering, money laundering and obstruction of justice. The indictment charged that FirstPlus Financial Group Inc. (FPFG), a Texas-based financial services company, was targeted for extortionate takeover and looting by a group of the conspirators. A substantial part of the enterprise’s activities occurred in New Jersey, including communications and the transfer of money into and out of the state.
Lisa Marie Scarfo admitted that she joined the mortgage fraud conspiracy in January 2008 when she worked with her then-fiancé, Nicodemo S. Scarfo, and others to secure a $500,000 mortgage from St. Edmond’s Federal Savings Bank to purchase the Egg Harbor Township house. Drossner previously pleaded guilty and admitted that at the direction of Pelullo, he created false tax returns to help Lisa Marie Scarfo qualify for a mortgage for the house. The indictment alleges that Nicodemo S. Scarfo used money looted from FPFG for the $215,000 down payment on the house. The false tax returns, which exaggerated Lisa Marie Scarfo’s income so that she could qualify for the mortgage without naming her then-fiancé Scarfo, were used to secure the mortgage.
After the FPFG scheme was shut down by federal law enforcement in May 2008, the Scarfos were unable to pay the mortgage and the house ultimately went into foreclosure. It was sold by the bank in 2010.
Nicodemo S. Scarfo, Pelullo, and eight other defendants charged in November 2011 – including attorneys William Maxwell, Cory Leshner, David Adler, Gary McCarthy, and Donald Manno – are scheduled for trial beginning Oct. 28, 2013. Todd Stark, also charged in the indictment, previously pleaded guilty to providing ammunition to Scarfo and Pelullo, convicted felons.
The conspiracy count to which Lisa Marie Scarfo pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 10, 2014.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, New York Region; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Thomas J. Cannon in Newark. He also thanked the FBI under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia for its vital assistance and the U.S. Securities and Exchange Commission for its role.
The government is represented by Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener, of the New Jersey U.S. Attorney’s Office Organized Crime/Gangs Unit and Criminal Division in Camden, and Trial Attorney Adam Small of the Organized Crime and Gang Section of the Justice Department’s Criminal Division.
With respect to the defendants awaiting trial, the charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
13-374Defense counsel: Richard Sparaco Esq., Cherry Hill, N.J.
Scarfo Superseding Information
Waterloo Man Pleads Guilty to Harboring Illegal Aliens Through Waterloo RestaurantRead the Press Release
Yu Jiang, age 30, from Waterloo, Iowa, pleaded guilty today in United States District Court in Cedar Rapids, Iowa, to one count of conspiracy to transport, harbor and encourage illegal aliens to reside in the United States.
Jiang admitted that during 2011 and 2012, he and others, doing business as the Hibachi Sushi Buffet restaurant in Waterloo, Iowa, knowingly employed undocumented foreign nationals to work at the restaurant. The workers were provided housing by the restaurant and were transported on a daily basis to and from an apartment rented for the workers by Jiang. The workers were provided meals at the restaurant at no charge and were paid in cash for their services.
Jiang faces a possible maximum sentence of 10 years= imprisonment, a $250,000 fine, $100 in special assessments, and up to three years of supervised release following any imprisonment. Jiang, a citizen of China, could also be deported following service of any term of incarceration.
A sentencing date will be set after the completion of a pre-sentence investigation report. Jiang was released on bond.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by Department of Homeland Security Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-02017.
Waterbury Man Sentenced to 27 Months in Prison for Distributing MethRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that KENNETH DeVRIES, also known as “Lyme,” 53, of Waterbury, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 27 months of imprisonment, followed by five years of supervised release, for his role in a meth distribution ring.
According to court documents and statements made in court, this matter stems from a joint investigation by the Drug Enforcement Administration and the Connecticut State Police’s Statewide Narcotics Task Force. The investigation, which included the use of court-authorized wiretaps, controlled purchases of meth, physical surveillance and the use of an undercover officer, revealed that Kevin Wallin of Waterbury received shipments of meth from individuals in California on consignment with the understanding that he would pay his sources with proceeds generated by his distribution of the drug. After receiving the shipments of meth, he distributed the drug to other dealers and sold it to his own customers.
On six occasions between September 2012 and January 2013, Wallin sold meth to the undercover officer.
DeVRIES resided in an apartment located across the hall from Wallin’s apartment. At Wallin’s direction, DeVRIES sold meth to Wallin’s customers when Wallin was unavailable.
DeVRIES has been detained since his arrest on January 3, 2013. On June 17, 2013, he pleaded guilty to one count of conspiracy to distribute 50 grams or more of a mixture and substance containing methamphetamine (“meth”).
Wallin and three other defendants have also pleaded guilty and await sentencing.
This matter is being prosecuted by Assistant United States Attorneys Patrick Caruso and H. Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Wanblee Man Sentenced to 51 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on September 13, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Provincial remained in the custody of the U.S. Marshals Service.
Angel Provincial, age 23, was sentenced to 51 months’ imprisonment, 3 years' supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
From August 2009 through July 2012, Provincial conspired with others to distribute methamphetamine in and around the Pine Ridge Indian reservation. Provincial pled guilty to the charge on May 8, 2013.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Federal Bureau of Investigation, the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ted L. McBride prosecuted the case.US Attorney Lynch Testimony at Moreland Act CommissionRead the Press Release
US Attorney Lynch Testimony at Moreland Act Commission
U.S. Attorney and Acting Assistant Attorney General Send Letter to Michigan Supreme Court Addressing Rule 1.111, Foreign Language InterpretersRead the Press Release
091713_AAG_Letter_to MI-Re_Court_Rule(2).pdf (pdf file) Click on link to view document
Two Plead Guilty in International $200 Million Credit Card Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A New York man today admitted his role in one of the largest credit card fraud schemes ever charged by the Justice Department following the guilty plea of another conspirator last week, New Jersey U.S. Attorney Paul J. Fishman announced.
Qaiser Khan, 49, of Valley Stream, N.Y., pleaded guilty today before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court. Khan pleaded guilty to an information charging him with one count of conspiracy to commit bank fraud. Shafique Ahmed, 52, of Floral Park, N.Y., pleaded guilty before U.S. Magistrate Judge Cathy L. Waldor in Newark on Sept. 11, 2013, to an information charging conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:Khan and Ahmed were originally charged in February 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Members of the conspiracy doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts – causing more than $200 million in confirmed losses to businesses and financial institutions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; finally, run up large loans.
The scope of the criminal fraud enterprise required Khan, Ahmed and their conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses of the false identities.
Khan and Ahmed admitted they helped obtain credit cards in the name of third parties – many of which were fictional – then directed the credit cards to be mailed to addresses controlled by members of the conspiracy. They also admitted they knew the cards would be used fraudulently at businesses.
The charges to which Khan and Ahmed pleaded guilty carry a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gain or loss caused by the offense.The defendants are both scheduled for sentencing before U.S. District Judge Anne E. Thompson as follows: Khan on Jan. 6, 2014, and Ahmed on Oct. 30, 2013.
U.S. Attorney Fishman praised special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to the guilty pleas, as well as postal inspectors, under the direction of Postal Inspector in Charge Marie L. Kelokates, and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola. He also thanked the U.S. Social Security Administration for its role in the investigation.
The government is represented by Assistant U.S. Attorneys Daniel V. Shapiro and Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit and Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit in Newark.This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
13-373
Defense counsel:
Khan: Christopher Adams Esq., Roseland, N.J.
Ahmed: Joseph Giaramita Esq., BrooklynKhan, Qaiser Information
Ahmed, Shafique InformationTwo Men Sentenced to Prison for Roles in Large-Scale Identity Theft Ring and Tax EvasionRead the Press Release
NEWARK, N.J. – Two men were sentenced to prison terms today for their respective roles in a large-scale and sophisticated identity theft scheme, U.S. Attorney Paul J. Fishman announced.
Sang-Kyu Seo, 63, of Palisades Park, N.J., was sentenced to three years in prison and Young-Woo Ji, 39, Bayside, N.Y., was sentenced to 65 months in prison by U.S. District Judge Katharine S. Hayden in Newark federal court.Seo previously pleaded guilty before Judge Hayden to a five-count information that charged him with conspiracy to unlawfully produce identification documents and false identification documents, aggravated identity theft, conspiracy to commit wire fraud, conspiracy to commit bank fraud, and tax evasion.
Ji previously pleaded guilty before Judge Hayden to an information charging him with conspiracy to commit wire fraud affecting financial institutions and bank fraud, aggravated identity theft and false claims.
According to documents filed in this case and statements made in court:
The Seo Conspiracy
Seo was the owner and operator of Hang Jin Yi Inc., d/b/a Hwangini, a salon located in North Bergen, N.J., and Pier 7 Corporation, a purported small business located in Palisades Park. Seo conspired with Sang-Hyun Park, a/k/a “Jimmy,” and others to obtain a Social Security card beginning with the prefix “586” for another individual. These “586” Social Security cards were issued by the United States to individuals, usually from China, who were employed in American territories, such as Guam. Park is alleged to have been the leader of a criminal organization headquartered in Bergen County, N.J. that obtained, brokered, and sold identity documents to customers for the purpose of committing credit card fraud, bank fraud, tax fraud, and other crimes. Park pleaded guilty on Jan. 9, 2012, to his role in the enterprise and is awaiting sentencing.The Park Criminal Enterprise engaged in the fraudulent “build up” of credit scores associated with the Chinese identities. They did so by adding the Chinese identity as an authorized user to the credit card accounts of various coconspirators who received a fee for this service – members of the enterprise’s credit build-up teams. By attaching the Chinese identities to these existing credit card accounts, the teams increased the credit scores associated with the Chinese identities to between 700 and 800. The members of the build-up teams knew neither the real person to whom the identity belonged nor virtually any of the customers who had purchased the identities.
After building up the credit associated with these identities, Park and his conspirators directed, coached, and assisted the customers in opening bank accounts and obtaining credit cards. Park and his conspirators then used these accounts and credit cards to commit fraud. In particular, Park relied on several collusive merchants who possessed credit card processing, or swipe, machines. For a fee, known as a “kkang fee,” these collusive merchants charged the fraudulently obtained credit cards, although no transaction took place. After receiving the money into their merchant accounts from the credit cards related to these fraudulent transactions, the collusive merchants gave the money to Park and his coconspirators, minus their kkang fee.Seo admitted that he obtained a 586 Social Security card and counterfeit driver’s licenses through Park for a family member, who then used this identity to “bust out” credit cards.
Seo also admitted that he gave his corporate and personal credit cards to Park for the purpose of busting out these maxed out credit cards. In furtherance of this conspiracy, Park and his conspirators issued worthless checks, drawn on bank accounts that had been established using the 586 identities, as payment toward the balances on Seo’s credit cards. Before the banks and credit card companies realized that these checks were bogus, Park and his conspirators charged Seo’s credit cards through collusive merchants or used them to purchase merchandise.
Seo also admitted that in mid-2007, with the assistance of a loan broker, he fraudulently obtained a $100,000 commercial loan on behalf of Pier 7. Seo admitted that he and the loan broker made false statements to obtain the loan, including falsely representing that his business’ annual revenue was approximately $620,000.
Seo admitted that he committed tax evasion by issuing checks to himself and others, representing income derived through the operation of Hwangini, and then failing to report this income on his personal tax returns. Seo admitted that on or about April 15, 2008, he filed an individual income tax return for tax year 2007. This return declared that his taxable income for calendar year 2007 was approximately $197 and the amount of tax due and owing was approximately $19. Seo admitted that this return failed to include $304,848 in additional taxable income that he had received in 2007, having an additional tax of $81,643. He was arrested on Sept. 16, 2010, and released on $250,000 bail.
The Ji Conspiracy
Ji conspired with Park and others to defraud banks, credit card companies, and other lenders. Ji admitted that in February 2008, he traveled to Illinois and used a 586 Social Security card belonging to a person with the initials F.C., to fraudulently obtain driver’s licenses.Ji admitted that he used the F.C. identity to fraudulently obtain credit cards. He then used these credit cards, in the name of F.C., to fraudulently build up credit scores and credit histories for Park’s customers who had obtained 586 identities from the Park Criminal Enterprise.
Ji also admitted that he used the F.C. identity to establish a merchant account for ZZ Entertainment, Inc., a completely fictitious business. By establishing this account, Ji obtained a credit card processing machine and thereafter served as a “collusive merchant” for the Park Criminal Enterprise. Ji acknowledged that between Oct. 5, 2008, and Oct. 20, 2008, he charged $50,000 in fraudulent credit card charges through his ZZ Entertainment Corp. account and then shared portions of this fraud with Park. In total, Ji caused more than $400,000 in financial losses to banks, credit card companies and others.
Ji admitted that he used the 586 identities that he had obtained from Park to file fraudulent tax returns with the IRS. Ji admitted that he used these identities, together with fraudulent W-2 Forms, to claim hundreds of thousands of dollars in tax refunds. He was arrested on Sept. 16, 2010 and released on a $250,000 bail.
In addition to the prison term, Judge Hayden sentenced Seo to three years of supervised release and ordered him to pay $1.2 million in restitution. She sentenced Ji to three years of supervised release and ordered him to pay $187,874 in restitution.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor John L. Molinelli and the Office’s Chief of Detectives Steven Cucciniello, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Anthony Moscato of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
As for other members of the Park Criminal Enterprise, the charges and allegations contained in the Complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
13-375
Defense counsel: Wanda M. Akin Esq., Newark
Two Brothers Plead Guilty in case involving Illegal Guns, Drugs and Juvenile ProstitutionRead the Press Release
Two Tukwila, Washington brothers who were indicted earlier this year for illegal weapons possession, have pleaded guilty in U.S. District Court in Seattle, announced U.S. Attorney Jenny A. Durkan. JAMAAL JOHNATHAN BOMBER, 30, pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime and sex trafficking of a child. FREDERICK N. BOMBER, 31, pleaded guilty to being a felon in possession of a firearm. FREDERICK N. BOMBER faces up to ten years in prison when sentenced by U.S. District Judge Thomas S. Zilly. Under the terms of the plea agreement for JAMAAL JOHNATHAN BOMBER, prosecutors and the defense must recommend between 15 and 20 years in prison when he is sentenced. Both men will be sentenced by Judge Zilly on December 19, 2013.
According to records filed in the case, both men made sales of weapons or drugs to an undercover agent with the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). In April 2013, FREDERICK BOMBER sold the agent a Browning .30-06 caliber rifle. FREDERICK BOMBER was prohibited from possessing the rifle because of prior convictions for drug offenses (2003, 2006) and bail jumping (2006).
According to his plea agreement, JAMAAL JOHNATHAN BOMBER sold crack cocaine to an ATF undercover officer on three different occasions in April and May 2013. JAMAAL JOHNATHAN BOMBER also offered the undercover officer prostitutes, and on June 14, 2013, JAMAAL JOHNATHAN BOMBER had five women go to a hotel room specified by the undercover officer. The women were detained by police. One woman was just 16-years-old. JAMAAL JOHNATHAN BOMBER assisted the woman in working as a prostitute and obtained the profits from the juvenile’s sex acts. JAMAAL JOHNATHAN BOMBER posted pictures as advertisements for commercial sex acts on backpage.com and other sites, and transported the juvenile to locations for sex acts. On the same day that the four women were detained by police, a search of JAMAAL JOHNATHAN BOMBER’s hotel room and car turned up crack cocaine as well as a 12-guage shotgun which he possessed to protect his drugs, the drug proceeds and himself.
Prosecutors will recommend not more than 20 years, and defense attorneys can recommend no less than 15 years for JAMAAL JOHNATHAN BOMBER. However, Judge Zilly is not bound by the recommendations and can impose any sentence allowed by law up to the maximum of life in prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Seattle Police Department (SPD), and the Tukwila Police Department (TPD). The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Tucson Man Sentenced to 18 Years for Child Pornography OffensesRead the Press Release
TUCSON, Ariz. – On Sept. 17, 2013, Billy Dewayne Mills, 34, of Tucson, Ariz., was sentenced to 18 years in prison, followed by a term of lifetime supervised release with stringent sex offender conditions, including registration as a sex offender. Mills pleaded guilty to knowing access of child pornography on March 7, 2013.
Mills was indicted by a federal grand jury for accessing child pornography after an investigation by Tucson Department of Homeland Security Agents revealed that Mills downloaded and shared child pornography by way of a peer-to-peer file-sharing program. Mills had previously been convicted in Missouri of possession of child pornography in 2008 and of first degree child molestation in 2000.This case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney’s Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood coordinates 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.
The investigation in this case was conducted by Department of Homeland Security – Immigration and Custom Enforcement (ICE) Agents in Tucson. The prosecution was handled by Carin C. Duryee, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-12-02467
RELEASE NUMBER: 2013-073_MillsFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Three Wanblee Men Indicted for Assaulting Two Other MenRead the Press Release
United States Attorney Brendan V. Johnson announced that three Wanblee, South Dakota, men have been indicted by a federal grand jury for allegedly using a blunt object and their shod feet to assault two other men on October 15, 2012, in Wanblee. Both of the assaults resulted in serious bodily injury to the victims.
Robert Quiver Jr., age 21, Levi Quiver, age 27, and Vern Standing Soldier Jr., age 30, were indicted by a federal grand jury on August 27, 2013. Robert Quiver and Levi Quiver were indicted for two counts of Assault with a Dangerous Weapon and two counts of Assault Resulting in Serious Bodily Injury. Standing Solder was indicted for one count of Assault with a Dangerous Weapon and one count of Assault Resulting in Serious Bodily Injury.
Robert Quiver appeared before U.S. Magistrate Judge Veronica L. Duffy, on August 29, 2013, and pled not guilty to the Indictment. Levi Quiver and Standing Soldier appeared before Judge Duffy on September 12, 2013, and each pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of imprisonment and a $250,000 fine for each charge. The charges are merely accusations and each defendant is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.
All three men were remanded to the custody of the U.S. Marshals Service. A trial date has been set for November 19, 2013.Three Men Indicted on Charges of Stealing Drugs from Walter Reed and Fort Belvoir HospitalsRead the Press Release
Greenbelt, Maryland - A federal grand jury has indicted Issa Wasco Koroma, age 61, of Springdale, Maryland; Rodger George Gurdon, age 42, of Waldorf, Maryland; and Daniel Mark Wilkerson, age 39, of Waldorf, Maryland on charges arising from a conspiracy to steal prescription drugs from two federal military hospitals. The indictment was returned yesterday.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid Atlantic Field Office; and Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations.“Protecting the legitimate pharmaceutical supply chain is an FDA priority,” said SAIC Antoinette V. Henry. “The integrity of the drug supply is safeguarded by protections imposed at every level of a drug's distribution. Once drugs are removed from this closed system, there can be no guarantee that the product is safe, effective or even that it is what it purports to be. This could threaten the health of future patients who rely on these drugs.”
The five count indictment alleges that Koroma and Gurdon were pharmacy technicians at Walter Reed National Military Medical Center and Fort Belvoir Community Hospital, respectively, where they had access to medications stored at the hospitals’ pharmacies. From January to June 2013, Koroma stole Norditropin and Botox from Walter Reed, which he sold to Gurdon. Gurdon also stole Norditropin from Fort Belvoir. Gurdon sold these stolen prescription drugs to Wilkerson.
The indictment seeks forfeiture of at least $1.3 million, the value of drugs stolen from the pharmacies.
The defendants face a maximum sentence of five years in prison for the conspiracy. Koroma also faces a maximum sentence of 10 years in prison on each of four counts of theft of medical products. Wilkerson and Koroma are scheduled for their initial appearance in federal court in Greenbelt on September 20, 2013 at 3:30 p.m. Gurdon’s initial appearance has not been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the DCIS and FDA-OCI for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Paul Nitze and Assistant United States Attorney Mara Zusman Greenberg, who are prosecuting the case.
Three Former Construction Company Officers Plead Guilty to Fraud ConspiracyRead the Press Release
Jackson, Miss - H. Claiborne Frazier, 41, Austin W. Frazier, 38, and C.E. Frazier, Jr., 65, all from the Jackson metro area, pled guilty in federal court on Monday, September 16, 2013, for their roles in a conspiracy to commit bank fraud, mail fraud, and wire fraud, announced U.S.Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
From January 2003 through at least June 2008, the Fraziers conspired to commit bank fraud, mail fraud and wire fraud through Frazier Construction Company, Inc., Frazier Development Company, LLC, Van Buren LLC, and Olde Colony, LLC. The Fraziers defrauded BancorpSouth Bank on a $5.4 M construction loan and M&F Bank on a $2.8M construction loan. They also defrauded their bonding company, Travelers Casualty and Surety Company of America to get funding to pay Frazier Construction subcontractors and to obtain funding to continue the daily business operations of Frazier Construction to complete its outstanding construction projects.
The Fraziers will be sentenced on January 9, 2014. Claiborne Frazier faces a maximum sentence of 30 years in prison and a $250,000 fine. Austin Frazier and C.E. Fraizer each face a maximum sentence of five years in prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carla J. Clark is prosecuting the case for the government.
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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The Macalan Group, Inc. Agrees to Resolve Overcharging AllegationsRead the Press Release
DENVER – The Macalan Group, Inc., formerly known as NEK Advanced Securities Inc. (NEK), a security contractor headquartered in Colorado Springs, Colorado, has agreed to resolve allegations that it submitted false claims in connection with a contract with the Joint Improvised Explosive Device Defeat Organization (JIEDDO), U.S. Attorney John Walsh announced on behalf of the Justice Department and its investigative partners.
NEK’s contract with JIEDDO required it to develop and deploy teams of specialized personnel to Iraq and Afghanistan to combat improvised explosive devices. The government alleged that NEK submitted false invoices for payment in connection with this contract that claimed excessive or unallowable costs. To resolve these allegations, NEK has paid the United States $2.08 million, and will also relinquish an outstanding invoice for $744,969, and turn over numerous weapons and accessories acquired under the contract.
“No government contract is more important than one that supports the security efforts of our nation overseas,” said U.S. Attorney John Walsh. “When a contractor fails to bill by the contract rules set up to protect American taxpayers, our office will diligently and aggressively seek to recover any losses, as this case demonstrates.”
“This settlement demonstrates our commitment to pursue contractors who fail to accurately bill the government,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “The Justice Department will continue to ensure that those who do business with the government do so honestly and fairly and uphold the integrity of our public contracting process.”
“We are very pleased with today’s settlement with over two million dollars back to the U.S. Government,” said Frank Robey, Director of the United States Army Criminal Investigation Command’s Major Procurement Fraud Unit. “Our special agents have worked tirelessly on this case, along with our partners in Federal law enforcement and the Department of Justice, and will continue to do so as we continue to scrutinize and monitor contracts affecting the U.S. Army.”
“The settlement in this investigation is the result of a highly successful joint effort by the Defense Criminal Investigative Service (DCIS) and our law enforcement partners from the U.S. Army Criminal Investigations Command and the Department of Justice, to include support provided by the Defense Contract Audit Agency,” said Janice M. Flores, Special Agent in Charge of the DCIS Southwest Field Office. “This settlement highlights the Federal Government's continuing resolve to recover losses to the American taxpayer when a contractor has claimed money to which it was not entitled. The United States must be able to count upon Government contractors to seek payment only for services performed or material provided, in conformance with their contractual obligations.”
The United States Attorney’s Office is grateful for the hard work of the investigative partners that produced today’s result, including the Civil Division, Commercial Litigation Branch; the Army Criminal Investigation Command Major Procurement Fraud Unit; the Defense Criminal Investigative Service; the Defense Contract Audit Agency; and, the Contract Integrity Center, Office of General Counsel, Defense Contract Management Agency.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Assistant U.S. Attorney J. Chris Larson and Department of Justice Trial Attorney Benjamin Wei handled this matter on behalf of the United States.
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Tennessee Woman Charged in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Tekilla Frisbie, 32, of Tennessee, was charged by criminal complaint with production, receipt and distribution of child pornography. The charges carry a mandatory minimum sentence of 15 years in prison, a maximum of 30 years, a $500,000 fine or both.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that in July 2013, the FBI Office in Elmira, N.Y. was informed that a man from Maryland exchanged images of child pornography with a woman in the Western District of New York between May and August 2011. The investigation traced the images to a cell phone used by the defendant during that time. According to the complaint, the phone belonged to a friend of Frisbie's who told law enforcement officers that the defendant had lived with her and looked after her children.
The defendant was interviewed by FBI Special Agents in Tennessee and admitted that while living in the Western District of New York, she produced images of her friend's child then used her friend's cell phone to exchange the images with the man in Maryland.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The criminal complaint was the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.South Jordan Man Sentenced to 78 Months in Prison for Real Estate Investment Fraud SchemeRead the Press Release
Received Around $49 million from Investors; Paid About $37 million in Ponzi PaymentsSALT LAKE CITY – Kenneth Case Tebbs, age 42, of South Jordan, will spend 78 months in federal prison after pleading guilty to one count of wire fraud in connection with a real estate investment scheme. U.S. District Judge David Sam imposed the sentence Monday afternoon in U.S. District Court in Salt Lake City.
Judge Sam scheduled an Oct. 10, 2013, hearing to resolve restitution issues in the case. Tebbs must report to the U.S. Bureau of Prisons to begin serving his sentence on Oct. 28, 2013. He will be on supervised release for 36 months when he finishes his prison sentence.
According to a sentencing memorandum filed by the U.S. Attorney’s Office, buying and selling residential properties and undeveloped lots was a hot and profitable investment during Utah’s real estate boom from 2004 to 2007. Starting in 2005, Tebbs through his two companies, Twin Peaks Financial and MNK Investments, attempted to take advantage of the boom by promising significant annual returns of 18 percent plus origination points ranging from 1 to 5 percent to investors. However, federal prosecutors say his business plan exceeded economic reality and beginning in 2006, the investment plan quickly migrated to a Ponzi scheme which could only be sustained through soliciting more investors.
In a plea agreement reached with federal prosecutors, Tebbs admitted that in 2006, he expanded Twin Peaks’ business to focus on the purchase and acquisition of large subdivision projects of approximately 20 lots. At this point, Tebbs claims he began to lose control of the business. Money that was needed to fund these larger projects quickly exceeded Twin Peaks’ incoming cash flow. He admitted deciding that the way to sustain Twin Peaks’ business operations was through the infusion of new investor money. He also admitted recognizing that Twin Peaks could not continue to sustain its ongoing purchases or larger projects. Consequently, the number of investors quickly exceeded the number of investment properties under Twin Peaks’ ownership and control. To keep the business going through new investments, Tebbs admitted he began falsifying and forging recording stamps on old trust deeds and provided new investors with “new” trust deeds, knowing that multiple investors were now secured by the same property.
As the Ponzi scheme progressed, Tebbs admitted knowing that the total amount of new investor funds used to pay old investors far exceeded any cash flow stemming from the Twin Peaks properties.
“It’s difficult to know what was going through the defendant’s mind as he continuously lied to investors about the soundness of rolling over their investments and returns, knowing full well their investments were not even worth the paper on which fabricated trust deeds were printed and provided to investors,” Assistant U.S. Attorney Mark Y. Hirata wrote in the sentencing memorandum. “The defendant’s excuse of losing control of the business, while convenient, cannot mask his irrefutable knowledge of a failing business, bereft of profits, and his unmistakeable efforts to exploit investors willing to part with their hard-earned money, inheritances, and retirements so that they too could take advantage of the defendant’s genius in cornering Utah’s real estate market.”
Hirata argued for a sentence of 78 months given the egregious nature and circumstances of the Tebbs’ Ponzi scheme.
According to the plea agreement, Tebbs accepted money from investors ranging in amounts from $15,000 to as much as $11.3 million. During the fraud period, he admitted receiving approximately $49 million from investors and paying out approximately $37 million in Ponzi payments.
The case is being prosecuted by the U.S. Attorney’s Office in Utah and investigated by the FBI.
(Follow the U.S. Attorney’s Office on Twitter @DUTnews)South Holland Man Charged in Southern Illinois Crack Cocaine ConspiracyRead the Press Release
A South Holland, IL, resident was indicted on September 4, 2013, and charged with conspiracy to distribute crack cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The indictment alleges that Albert Wesley, a/k/a “Boog,” “Boogie,” 29, committed the conspiracy offense between 2012, and April 2013, in Williamson and Jackson Counties. Wesley made his initial appearance in federal court on September 16, 2013, and was ordered held without bond pending his September 19, 2013, detention hearing. Co-defendant Eric Scott Russell, 47, previously appeared in federal court and was ordered held without bond pending a November 18, 2013, jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Wesley and Russell each face a term of imprisonment of up to 20 years, a $1,000,000 fine, and 3 years of supervised release.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, Carbondale Police Department, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Sonny Lionel Crazymule Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on September 16, 2013, before U.S. District Judge Sam E. Haddon, SONNY LIONEL CRAZYMULE, a 34-year-old resident of Lame Deer, was sentenced to a term of:
- Prison: 71 months
- Special Assessment: $100
- Supervised Release: 3 years
CRAZYMULE was sentenced after a federal district court trial in which he was found guilty of aiding and abetting assault resulting in serious bodily injury.
Assistant U.S. Attorney Lori Harper Suek prosecuted the case for the United States.
At trial, the following evidence and testimony was presented to the jury.
On the evening of November 16, 2011, the victim was in a tent with a woman in the yard of his mother's home in Lame Deer, which is within the exterior boundaries. The victim heard someone approach the tent and tell him that another woman "S.S." wanted to talk to him. The victim had made plans to be with "S.S." that night, but the victim had not showed up. The victim tried to get out of the tent, and he did get the tent door unzipped, but he was immediately struck in the head with something. The victim did not see who struck him. He lost consciousness, almost immediately, and he did not wake up until later.
The victim's brother was sleeping in the mother's home. He woke up when he heard a commotion outside of the house, and he saw two figures walking away.
After the assault, CRAZYMULE went to the house of "X.X.". CRAZYMULE was covered in blood and told "X.X." that he thought he killed someone. CRAZYMULE then took a shower and changed his clothes.
A few days later on December 1, 2011, CRAZYMULE approached two friends of "Z.Z.'s" at the Cheyenne depot, the local convenience store. CRAZYMULE told them to tell "Z.Z." that "Z.Z." better take the blame for the assault because he is a juvenile.
CRAZYMULE was interviewed. He initially denied any involvement in the assault and refused to admit that he was even at the location of the assault. He then changed his story and admitted that he was present, but he portrayed "Z.Z." as the aggressor. CRAZYMULE claimed that he had to jump on the victim to protect him from "Z.Z.'s" blows. CRAZYMULE also said that "Z.Z." struck the victim with a folding chair three or four times and that during this time he was on the victim protecting him from the blows.
Z.Z." was interviewed. He admitted that he walked to the victim's tent with CRAZYMULE and "S.S.". He asserted that both he and CRAZYMULE assaulted the victim, but it was CRAZYMULE who "went in and beat [the victim]." "Z.Z." admits that he hit the victim with a chair.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that CRAZYMULE will likely serve all of the time imposed by the court. In the federal system, CRAZYMULE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Sewickley Woman Charged with Health Care FraudRead the Press Release
PITTSBURGH, Pa. - A Sewickley resident has been indicted by a federal grand jury in Pittsburgh on charges of health care fraud, United States Attorney David J. Hickton announced today.
The one count indictment named Mary Monica Wilson-Lefler, 62, as the defendant.
According to the indictment, Wilson was a salesperson who offered two durable medical equipment companies in the Pittsburgh area a business arrangement involving special air mattresses, known as powered pressure reducing mattresses or PPRAMS. PPRAMS are designed to reduce serious skin ulcers on patients who are essentially bedridden. She visited long term care (LTC) facilities to find patients, and handled all of the paperwork necessary to enable the DME companies to bill Highmark Blue Cross/Blue Shield's Security Blue Medicare Program (Security Blue). In order to qualify for Medicare coverage for these PPRAMS, a doctor must order the item in writing. In this case, Wilson prepared and sent by fax to attending physicians requests for orders for the PPRAMS. The faxed information included patient skin condition reports that falsely reported that the patients all had serious skin ulcers. Some of the these patient skin condition reports contained forged signatures of the LTC staff and some had forged signatures of physicians. In reality, none of the patients had serious skin ulcers or any other qualifying conditions that would meet the Medicare coverage requirements. There were about 83 patients from four facilities in whose names the false claims were made. The total billed was approximately $400,000, and the total paid to the two DME companies was about $200,000.
The law provides for a maximum sentence of 10 years in prison and a $250,000 fine or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the United States Food and Drug Administration, Office of Criminal Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Rockville Center Man; Long Island Company Plead Guilty to Cigarette SmugglingRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Joseph Ruda, 62, of Rockville Center, N.Y., and Ruda’s closely held corporation, Gutlove and Shirvint, Inc. of Long Island City, N.Y., pleaded guilty to cigarette smuggling before Chief U.S. District Judge William M. Skretny.
According to Assistant U.S. Attorney Anthony M. Bruce, who is handling the case, Ruda was part of a scheme to ship untaxed cigarettes from New York to Kentucky. The cigarettes were then mailed to other states. This was done without the filing of proper forms with the Commonwealth of Kentucky and the states where the untaxed cigarettes were shipped. The scheme is in violation of the Jenkins Act which regulates mail-order sales of cigarettes. It resulted in the shipment of over 58,000 cartons of untaxed cigarettes to Kentucky with a corresponding loss to the Commonwealth of Kentucky of nearly $175,000 in excise taxes.
The defendant also pleaded guilty on behalf of his company, Gutlove and Shirvint, Inc. The company used the ruse of shipping the untaxed cigarettes to several smoke shops on the Cattaraugus Indian Reservation where they were immediately transferred to a second truck and sent back to the Peace Pipe Smoke Shop on the Poospatuck Indian Reservation on Long Island. The cigarettes were then resold in bulk to cigarette bootleggers who then sold them in New York City. This resulted in a loss to the New York State Office of Finance and Taxation of more than $1,440,000.
The scheme was developed after Gutlove and Shirvint entered into an agreement with the Phillip Morris Corporation to stop selling cigarettes to the Peace Pipe Smoke Shop, the company's biggest customer at the time. Phillip Morris determined that Peace Pipe Smoke Shop was allegedly engaged in criminal activity and threatened to stop selling cigarettes to Gutlove and Shirvint if the corporation did not cease doing business with the Peace Pipe Smoke Shop.
Ruda faces six months in prison. Gutlove and Shirvint, Inc., faces a fine of up to $250,000. The company previously made restitution in the amount of $1,446,000 to new York State. In addition, Ruda and Gutlove and Shirvint, Inc. agreed to forfeit their profits from the scheme. This includes a $600,000,00 monetary judgment that both Ruda and his corporation are equally obligated to pay to the Government. Ruda will also personally forfeit $325,000 to the government, in cash, prior to his sentencing.
The pleas are the result of a joint investigating by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano, and by the New York State Department of Taxation and Finance, Criminal Investigations Division, under the direction of Chief Investigator Patrick Simet.
Sentencing is scheduled for February 3, 2014 before Judge Skretny.Registered Sex Offender Charged with Traveling to and from New Jersey to Assault A MinorRead the Press Release
FBI Seeks Additional Victims, Information
CAMDEN, N.J. – A registered sex offender who allegedly traveled between New Jersey, New York and Pennsylvania to sexually assault a girl younger than 13 on more than one occasion is expected to appear this afternoon to face a federal charge in Camden federal court, U.S. Attorney Paul J. Fishman announced.
Joseph Anthony Caracciolo, aka “Joseph Crillo,” aka “Joseph Grillo,” 47 – believed to have resided in Massachusetts, California, Virginia, Connecticut, Florida and New York – was arrested in New York on Aug. 28, 2013. He is currently being held on related state charges filed by the Atlantic County Prosecutors Office. The U.S. Attorney’s Office for the District of New Jersey is adopting the case for federal criminal prosecution.
Caracciolo is charged by federal criminal complaint with travelling in interstate commerce for the purpose of engaging in illicit sexual conduct with a minor. He is to appear this afternoon before U.S. Magistrate Judge Karen M. Williams.
The FBI and the U.S. Attorney’s Office are seeking additional information from the public in order to identify other potential victims.
According to documents filed in this case:
During a period between May and August 2012, Caracciolo traveled from New York to New Jersey and from New Jersey to Pennsylvania in order to sexually assault a 12-year-old girl.
In intercepted communications, Caracciolo acknowledged paternity of a child born to the victim. The exchanges were monitored by law enforcement with the victim’s consent.
The count with which Caracciolo is charged carries a maximum potential penalty of 30 years in prison and a $250,000 fine.
According to the Department of Justice National Sex Offender Public Website, Caracciolo has been in violation of his sex offender registration requirements since August 2005.
Individuals with information concerning Caracciolo are asked to contact the FBI’s tip line at 1-800-CALL-FBI. Information can also be provided to the nearest FBI field office or filed electronically at https://tips.fbi.gov.
U.S. Attorney Fishman credited special agents of the Newark FBI Safe Streets Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the U.S. Marshals Service New York/New Jersey Regional Fugitive Task Force; the Atlantic County Prosecutor’s Office, under the direction of James P. McClain; and the Egg Harbor Township Police Department, under the direction of Chief Michael J. Morris, with the investigation.
The government is represented by Assistant U.S. Attorneys Justin C. Danilewitz and Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
The charge and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.13-372
Defense counsel: Assistant Federal Public Defender Thomas Young Esq., Camden
Caracciolo, Joseph Anthony Complaint
Raceland Man, Johnny Smith, Charged with the Sexual Exploitation of Children and Possession of Child PornographyRead the Press Release
JOHNNY SMITH, age 41, a resident of Raceland, Louisiana, was charged today in a two-count Bill of Information with the sexual exploitation of children and possessing images depicting the sexual victimization of children under the age of twelve-years-old, announced United States Attorney Dana J. Boente.
According to the Bill of Information, between May 12, 2013, and June 23, 2013, SMITH coerced a three-year-old girl to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. Furthermore, SMITH was charged with knowingly possessing visual depictions of children under the age of twelve engaged in sexually explicit conduct.
f convicted, SMITH faces a mandatory minimum term of imprisonment of 15 years and a maximum of 30 years as to Count 1, and a maximum of 20 years as to Count 2 followed by up to a life term of supervised release, and a $250,000 fine. He can also be required to register as a sex offender.
United States Attorney Boente reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case is being investigated by agents from the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant United States Attorneys Jordan Ginsberg.
(Download Bill of Information )
Putnam Man Sentenced to 18 Years in Federal Prison for Illegal Oxycodone DistributionRead the Press Release
HUNTINGTON, W.Va. – A 50-year-old Putnam County man was sentenced today to 18 years in prison for selling powerful prescription painkillers, announced U.S. Attorney Booth Goodwin. Terry Lee Hagan, of Culloden, W.Va., previously pleaded guilty in August to distribution of oxycodone. Hagan’s sentence was handed down today by Chief United States District Judge Robert Chambers in federal court in Huntington.
An extensive criminal record and a history of numerous drug sales combined to produce Hagan’s lengthy sentence.
On May 29, 2012, Hagan sold 4 30-milligram and 2 15-milligram oxycodone pills to a confidential informant working in cooperation with law enforcement authorities in exchange for $225. The illegal pill transaction took place at Hagan’s Culloden residence.
Hagan admitted that he was responsible for numerous other illegal oxycodone distribution transactions that took place in and around the Southern District of West Virginia.
Hagan was previously convicted of five felonies between May 1981 and April 2012 in the Circuit Court of Common Pleas, Cuyahoga County, Ohio.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Gregory McVey handled the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Parmelee Man Pleads Guilty to Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that Joseph Morrisette, age 43, of Parmelee, South Dakota, appeared before U.S. District Judge Roberto A. Lange on September 16, 2013, and pled guilty to Count I of the Indictment that charged him with Child Abuse.
The maximum penalty upon conviction is 10 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The conviction stems from an incident on July 9, 2013, when Morrisette was babysitting several children at his home while he was drinking. He was intoxicated and struck the victim, giving the child a black eye.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Morrisette was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for November 26, 2013.
Owner of New York Construction Company Pleads Guilty to Tax FraudRead the Press Release
Gurmail Singh, a resident of Richmond Hill, N.Y., pleaded guilty today in U.S. District Court in the Eastern District of New York to filing a false federal tax return, the Justice Department and Internal Revenue Service (IRS) announced.
According to the indictment, court records and admissions made by the defendant in court today, Singh used check-cashing services to cash more than $2.9 million in checks paid to his construction company, Fancy and Vicky Construction Co. Inc. in Richmond Hill, for services between 2006 and 2008. He concealed his check-cashing activities from his tax return preparers, and this income was not included as gross income on the company's tax returns. Singh also diverted cash receipts earned by his companies for his own personal use. Singh admitted that his failure to report Fancy and Vicky’s gross receipts caused a tax loss to the IRS of between $400,000 and $1,000,000.
Singh faces a potential maximum sentence of three years in prison and a maximum fine of $250,000. Sentencing is set for Jan. 6, 2014.
The case was investigated by IRS - Criminal Investigation and is being prosecuted by Trial Attorneys Mark Kotila and Jeffrey Bender of the Justice Department's Tax Division.
Nine Retailers Arrested for Food Stamp FraudRead the Press Release
Defendants Received $7 Million from USDA for Food Stamps Allegedly Traded for Cash
Baltimore, Maryland - A federal grand jury has indicted nine retail store owners or operators on federal charges of food stamp fraud and wire fraud in connection with schemes to illegally redeem food stamp benefits in exchange for cash. The indictments allege the retailers received almost $7 million in federal payments for transactions in which they did not provide any food, a fraud scheme commonly known as “food stamp trafficking.” Stores allegedly split the proceeds with food stamp recipients. The indictments were returned last week and unsealed today. Federal agents arrested the defendants and executed search warrants at the stores and related locations this morning.
The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture Office of Inspector General, Northeast Region; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“Taxpayers fund the food stamp program to put food on the tables of needy recipients, not to put money in the pockets of greedy criminals,” said U.S. Attorney Rod J. Rosenstein. “Food producers and distributors benefit when food stamp funds are used to buy food, and honest storeowners work hard to earn a profit by actually selling food. People who play by the rules deserve to know that criminals who defraud them will be held accountable.”
The Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program, is administered by the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA), together with state agencies. The program funds low-income individuals to allow them to obtain a more nutritious diet. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Retailers must apply to and be approved by FNS to participate in the program. Authorized retailers use a point-of-sale terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers. Retailers must bill the government only in return for providing approved food items.
The indictments allege that the defendants exchanged EBT benefits for cash, in violation of the food stamp program rules. The indictments allege that the defendants typically paid half the value of the EBT benefits in cash. To avoid detection, the defendants often debited the funds from the card in multiple transactions over a period of hours or days. As a result of unlawful cash transactions, the defendants obtained more than $6,898,000 in EBT deposits for transactions in which the stores did not provide food.
According to the indictments, the defendants listed below owned and/or operated stores in Baltimore that were authorized to accept SNAP. The defendants received instruction regarding the requirements and regulations of the food stamp program, including that only eligible food items could be exchanged for EBT benefits and that a retailer may never exchange EBT benefits for cash or non-food items.
Abdullah Aljaradi, age 51, of Baltimore;
Second Obama Express and D&M Deli and Grocery, 901 Harlem Avenue, Suite A and B, respectively. From October 2010 through July 2013, Aljaradi allegedly obtained more than $2 million in payments for food sales that never occurred.Dae Cho, age 66; and
Hyung Cho, age 40, both of Catonsville;
K&S Food Market, 3910 W. Belvedere Avenue. From November 2010 through July 2013, Dae Cho and her son, Hyung Cho, allegedly obtained more than $1.4 million in in payments for food sales that never occurred.Abdo Mohamed Nagi, age 54, of Baltimore;
New York Deli and Grocery 1207 West Baltimore Street. From February 2011 through May 2013, Nagi allegedly obtained more than $1.2 million in payments for food sales that never occurred.Kim Man Chu, age 38, of Rosedale, Maryland;
Long Hing Grocery Store, 1131 Greenmount Avenue. From October 2010 through July 2013, Chu allegedly obtained more than $750,000 in payments for food sales that never occurred.Amara Cisse, age 50, and
Fanta Keita, age 45, both of Windsor Mill, Maryland;
Simbo Food Mart, 2103 West Pratt Street. From November 2010 through May 2013, Cisse, and his wife Keita, allegedly obtained more than $600,000 in payments for food sales that never occurred.Jung Kim, age 51, of Ellicott City, Maryland;
C&C Market, 4752 Park Heights Avenue. From November 2010 through April 2013, Kim allegedly obtained more than $600,000 in payments for food sales that never occurred.John Cunningham, age 54, of Baltimore;
Cunningham’s Amoco, 4419 Park Heights Avenue. From December 2012 through July 2013, Cunningham allegedly obtained more than $348,000 in payments for food sales that never occurred.The defendants all face a maximum sentence of 20 years in prison for each count of wire fraud. Jung Kim, Dae Cho and Hyung Cho also face a maximum of 20 years in prison for food stamp fraud. Aljaradi, Nagi, Chu, Cisse, Keita and Cunningham face a maximum of five years in prison for food stamp fraud. The defendants are expected to have initial appearances later today in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the USDA Office of Inspector General and FBI for their work in the investigation. U.S. Attorney Rosenstein expressed appreciation to Secretary Ted Dallas and the Maryland Department of Human Resources, as well as U.S. Citizenship and Immigration Services - Office of Fraud Detection and National Security for their assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Kathleen O. Gavin, Peter M. Nothstein, Leo J. Wise and Judson T. Mihok, who are prosecuting these cases.
Milwaukee Man Charged with Sex-Trafficking A Minor from Wisconsin to Illinois to Engage in ProstitutionRead the Press Release
CHICAGO ― A Milwaukee man was arrested on a federal charge of sex-trafficking a minor and the alleged 15-year-old victim, from Madison, Wis., was returned to her home, federal law enforcement authorities announced today. The defendant, DAJUAN KEY, also known as “Dejuan Key,” 30, was scheduled to return to Federal Court in Chicago at 2:30 p.m. today for a detention hearing before U.S. Magistrate Judge Daniel Martin.
Key was taken into federal custody by FBI agents on Saturday and charged with sextrafficking a minor for allegedly transporting the 15-year-old girl from Madison to Chicago to engage in prostitution. He appeared before Magistrate Martin on Saturday and was ordered to remain in custody pending today’s hearing.
Transporting a minor across state lines to engage in prostitution carries a mandatory minimum sentence of 10 years and a maximum of life in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
According to a criminal complaint affidavit, the victim was found last Tuesday by Romeoville police at a fast food restaurant in the far southwest suburb after the girl’s mother reported that her daughter had called her crying, and told her that she was at a motel in Romeoville, and did not have a way home. Romeoville police responded to the motel where they located Key with a woman identified as an adult victim, who then accompanied police to the nearby restaurant and identified the minor victim.
The minor victim told FBI agents that she met a man, who she identified as Key, at an apartment complex in Madison on Sept. 8. Key told the girl that he was going to take her to Milwaukee and would return her to Madison. Instead, Key allegedly drove the girl to Chicago and they eventually arrived at a motel in Romeoville, where Key introduced the girl to a woman he told her was working for him as a prostitute. Key allegedly told the girl that if she worked for him, she would be able to keep all of the money she made. The victim told Key that she wanted him to take her home, but Key got the victim a motel room and took photographs of her, which he then apparently posted in online advertisements because her cell phone began to receive calls from unidentified numbers.
The victim repeatedly told Key that she wanted to go home, but she had no way to do so on her own, was tired, and agreed to spend the night believing Key would take her home in the morning. On Sept. 9 and 10, the victim engaged in commercial sex acts, believing that she would get to keep the money and use it for a bus ticket home. However, in each instance, Key demanded the money and the victim gave it to him because she was afraid of what he might do if she did not comply.
The arrest and charges were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. They commended the assistance and cooperation of the Romeoville Police Department.
The investigation was conducted by the FBI’s Child Exploitation Task Force. The task force is part of a nationwide effort known as the Innocence Lost National Initiative targeting those involved in the commercial sexual exploitation of children in the United States. In Chicago, the CETF is comprised of FBI special agents and officers and investigators from the Chicago Police Department, the Cook County Sheriff's Office, and the Cook County State’s Attorney’s Office. The case also falls under the umbrella of the Cook County Human Trafficking Task Force.
The government is being represented by Assistant U.S. Attorney Katherine A. Sawyer.
A complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Mexican National Indicted for Illegal Re-entry After DeportationRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 26-year-old Mexican national was indicted for entering the United States illegally after previously being deported as an aggravated felon. Joel Aguayo-Gomez was specifically charged with one count of illegal re-entry after deportation.
The indictment alleges that on November 5, 2011, Aguayo-Gomez was found in the U.S. after being deported to Mexico in 2011, following a 2008 Ramsey County conviction for aggravated robbery. On November 5, 2011, Aguayo-Gomez was taken into state custody on charges of terroristic threats and strangulation. In August 2013, Aguayo-Gomez was acquitted of all charges, and was placed into the custody of U.S. Immigration and Customs Enforcement (“ICE”).
If convicted of the federal charges now levied against him, Aguayo-Gomez will face a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence would be determined by a federal district judge.
This case is the result of an investigation by ICE’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Memphis Man Allan D. Cooper Pleads Guilty to Wire FraudRead the Press Release
Memphis, TN – Allan D. Cooper, 66, of Memphis, TN, pleaded guilty today to one count of wire fraud before United States District Judge John T. Fowlkes, Jr., announced U.S. Attorney Edward L. Stanton III.
According to the one-count criminal information and statements made in court, between approximately October 2011 and May 2013, Cooper defrauded six individuals of $395,000. According to the information, Cooper made various false and fraudulent statements, representations and promises to induce the victims to give him monies as either a “loan” or an “investment.”
Cooper told some of his victims about an investment opportunity with an old friend of his named “Charlie” and that if the victims would give Cooper funds to invest with Charlie they would receive a substantial return. In these instances Cooper frequently gave the victims a post-dated check payable in an amount that represented the principal and the return on the investment. When the victim discovered that the check was worthless, Cooper made other false representations and promises to repay.
Cooper told other victims that he was the owner of Cooper Chemical Company and that if they would loan him funds he would pay them back with substantial interest. In fact, “Cooper Chemical Company” was inactive and not conducting any business. Cooper also falsely represented that if a victim would loan him funds, they would be repaid with interest through disbursements from a trust in which defendant Cooper was a named beneficiary.
Cooper faces up to 20 years in federal prison and a fine of up to $250,000. He is scheduled to be sentenced by Judge Fowlkes on January 10, 2014, at 9:30 a.m. There is no parole in the federal prison system.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carroll L. Andre III is representing the government.