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15 November 2013
Chinese National Sentenced to 108 Months' Imprisonment for International Weapons TraffickingRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, New York, Zhifu Lin, a Chinese national and resident of West Virginia, was sentenced to 108 months’ imprisonment for violating the Arms Export Control Act and engaging in illegal weapons trafficking. From 2010 to 2012, Lin and others, including a former member of the United States Marine Corps and National Guard, exported multiple shipments of high-powered firearms from the United States to China. Lin and his accomplices secreted the weapons in packages and transported them to shipping companies in Queens, New York, and elsewhere, to be sent to Shanghai, China’s largest city. The weapons included dozens of semi-automatic handguns, rifles, shotguns, and military-style assault weapons.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, John P. Carlin, Acting Assistant Attorney General for National Security, James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York; Joseph Anarumo, Jr., Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division; Toni Weirauch, Special Agent-in-Charge, Internal Revenue Service, New York Field Office; and Sidney Simon, Special Agent-in-Charge, Department of Commerce, Office of Export Enforcement, New York Field Office.
Authorities uncovered the weapons trafficking ring after police in China seized a package containing firearms with defaced serial numbers, which had been shipped from Queens, New York. Upon learning of the seizure, American law enforcement officials traveled to China to examine the evidence. The types of weapons seized by the Chinese authorities have been designated by the President of the United States on the United States Munitions List, and may not be exported without a license from the U.S. State Department. With the aid of forensic techniques, agents determined that one of the weapons seized in China had originally been purchased by a former United States Marine in North Carolina. Agents then traced the shipments back to Lin and his accomplices. Agents arrested Lin in West Virginia in April 2012, and he has been in federal custody ever since. Lin, who originally entered the United States in 2009 on a student visa and briefly attended an American university, faces deportation upon the conclusion of his prison term.
“ The defendant traded the promise of the American dream for a jail cell and deportation by flagrantly violating federal gun laws and export regulations. All those who seek profits through the black market for illegal weapons – whether a former U.S. Marine who traded his honor for easy money, or a foreign national who took advantage of our country’s freedoms – will face the full force of the law. We will not cease in our efforts to stem the flow of illegal weapons that threaten the safety of our communities and our national security,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the federal agencies that worked closely together to investigate the case.
The sentence was imposed by United States District Judge Eric N. Vitaliano. To date, four individuals have been convicted of weapons trafficking and export offenses in connection with this case.
The government's case was prosecuted by Assistant United States Attorney Seth DuCharme, with assistance from Trial Attorney David Recker of the Department of Justice Counterespionage Section. Assistance also was provided by the U.S. Attorneys= Offices in the Northern District of West Virginia and the Eastern District of North Carolina and Trial Attorney Dan Stigall of the Department of Justice Office of International Affairs.
The Defendant
ZHIFU LIN
Age: 27Chief Executive Officer and President of Investment Fund Sentenced in Manhattan Federal Court for Orchestrating $10 Million Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ABDUL WALJI and RENIERO FRANCISCO, the Chief Executive Officer and President, respectively, of Arista LLC (“Arista”), a California investment fund, were sentenced today in Manhattan federal court to 151 months and 97 months, respectively, in connection with a multimillion-dollar fraud scheme. WALJI and FRANCISCO defrauded 40 investors of approximately $10 million through a series of misrepresentations concerning the nature and performance of the investment fund, and issued fraudulent account statements to investors to cover up massive losses. WALJI also perpetrated a separate multimillion-dollar scheme involving pension plan funds that he managed through three California-based trusts: Allied Benefits, Inc., Allied Benefits Trust, and Stone Lamm Trust (collectively, the “Trusts”). Both defendants were charged in December 2012, and pled guilty on July 2, 2013 before U.S. District Judge Denise Cote, who also imposed today’s sentences.
Manhattan U.S. Attorney Preet Bharara said: “Abdul Walji and Reniero Francisco defrauded dozens of investors who put trust – and millions of dollars – in their hands. The crimes they committed have earned them more than two decades of collective prison time.”
According to the three-count Superseding Information to which WALJI pled guilty, the Indictment to which FRANCISCO pled guilty, the defendants’ plea agreements, other documents in the public record, and statements made during their guilty pleas:
The Arista Fraud Scheme
Arista began operations as an investment firm in February 2010, with its principal place of business in Newport Coast, California. In April 2011, Arista became a registered commodity pool operator with the United States Commodity Futures Trading Commission (“CFTC”), and a member of the National Futures Association.
In early 2010, WALJI and FRANCISCO began to solicit individuals to invest in Arista. From 2010 through 2011, the defendants carried out a fraudulent scheme through three main methods. First, WALJI and FRANCISCO misrepresented to several Arista investors the nature of the company’s investments and the returns that investors would receive from investing in Arista. For example, WALJI and FRANCISCO falsely told investors that their money would be invested in safe, risk-free securities, when in fact much of the money was invested in options and futures. Second, WALJI and FRANCISCO sent fraudulent account performance statements to Arista investors that misrepresented the value of their investments. In an effort to secure additional contributions, the defendants also concealed Arista’s trading losses, and told investors that they were profiting from their investments when they were actually losing money. Finally, WALJI and FRANCISCO misappropriated at least $2.7 million from Arista’s investors through fees to which they were not entitled, and which WALJI and FRANCISCO diverted for their own personal benefit. Based on their false representations, WALJI and FRANCISCO collected $10 million from 40 investors, and they ultimately misappropriated a large portion of the money.
Walji’s Pension Plan Fraudulent Scheme
From early 2008 through June 2013, WALJI also perpetrated a separate fraudulent scheme using pension plan funds that he administered. Similar to the scheme set forth above, WALJI executed his fraudulent scheme through three principal methods. First, WALJI made oral misrepresentations to existing and potential clients of the Trusts concerning: (i) the nature of the Trusts’ pension plan investments; (ii) the investment value and past performance of the pension plans; and (iii) the source of funds distributed to plan participants who had reached retirement and/or who had requested distributions. Second, WALJI distributed fraudulent statements to clients concerning the value of their accounts and the prior performance of their pension plans in order to forestall redemption requests, to induce new clients to contribute to the plans, and to induce existing clients to make additional contributions. As selected clients reached retirement age or requested disbursements, WALJI sent those clients money that he represented to be proceeds of their individual pensions, when in fact he knew that the purported disbursements were often funds contributed by other clients. Third, WALJI misappropriated approximately $300,000 of client funds for his personal use. In total, this scheme caused losses to approximately 40 additional victims in an aggregate amount of approximately $11.3 million.
In addition to their prison terms, Judge Cote sentenced WALJI to three years of supervised release, and FRANCISCO to three years of supervised release. WALJI was also ordered to forfeit $13.6 million and to pay over $21 million in restitution. FRANCISCO was ordered to forfeit $4.1 million. The defendants also agreed to forfeit the proceeds of several bank and trading accounts.
WALJI, 60, of San Juan Capistrano, California, pled guilty in July 2013 to one count of conspiracy to commit securities fraud and wire fraud, one count of commodities fraud, and one count of securities fraud. FRANCISCO, 57, of Newport Coast, California, pled guilty in July 2013 to one count of conspiracy to commit securities fraud and wire fraud and one count of securities fraud.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and also thanked the CFTC for its assistance.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. 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.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys David I. Miller and Christopher D. Frey are in charge of the prosecution. Assistant U.S. Attorney Paul Monteleoni is in charge of the forfeiture-related aspects of the case.
California Man Arrested; Dea Task Force Seizes Six Kilograms of Heroin, More Than $300kRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration in New England, today announced that LUIS CEDILLO, 31, recently of Sylmar, Calif., has been arrested on a federal criminal complaint charging him with trafficking heroin.
CEDILLO was arrested last night in Wolcott. He appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and was ordered detained.
According to court documents and statements made in court, members of the Drug Enforcement Administration’s New Haven Task Force initiated surveillance of CEDILLO as part of an ongoing investigation. On November 14, 2013, agents followed a white Cadillac Escalade that CEDILLO was driving to a store where it is alleged that CEDILLO purchased items used in the processing and packaging of illegal drugs. After the Escalade traveled to a garage in Wolcott, agents approached CEDILLO, secured him in handcuffs and received consent from the owner of the property to search the garage.
As alleged in the complaint, agents observed that the vehicle, which was raised on a lift, had sheet-rock screws coming through the metal of the bottom of the car. After a canine alert, agents located and opened a trap in the rear of the vehicle and retrieved approximately six kilograms of heroin. CEDILLO was placed under arrest at the time.
A subsequent search of a residence in Danbury connected to CEDILLO revealed between $300,000 and $400,000 in cash.
The complaint charges CEDILLO with possessing with the intent to distribute one kilogram or more of heroin.
This matter is being investigated by the DEA New Haven Task Force, which includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia and Meriden Police Departments, and the U.S. Marshals Service. This case is being prosecuted by Assistant U.S. Attorney Dave Vatti and Special Assistant U.S. Attorney Natasha Dye.
Acting U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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(203) 821-3722 [email protected]Brothers Plead Guilty to Federal Murder ChargesRead the Press Release
ANTOINE BROOKS, age 23, DON BROOKS, a/k/a “Crip,” age 21, both of New Orleans, Louisiana, pled guilty yesterday before U.S. District Judge Lance M. Africk to violations of the Federal Gun Control Act, announced U.S. Attorney Kenneth Allen Polite, Jr.
ANTOINE BROOKS pled guilty to using a firearm to murder Tamira Johnson on September 23, 2011. DON BROOKS pled guilty to using a firearm to murder Tamira Johnson on September 23, 2011; Harry Howard on January 1, 2012; and Lamont Phillips on January 4, 2012. Pursuant to their 11(c)(1)(C) plea agreements with the government, which the Court may accept or reject, ANTOINE BROOKS will be sentenced to a term of imprisonment of 25 years and DON BROOKS will be sentenced to a term of imprisonment of 20 years for each murder, to be served consecutively, for a total of 60 years imprisonment.
According to court documents, the defendants admitted that on September 23, 2011, they were driving in New Orleans looking for Roosevelt Rumbley, a rival drug dealer with whom they had an ongoing drug feud, in order to kill him. As ANTOINE and DON BROOKS approached Rumbley, ANTOINE BROOKS reached out of the car window holding a .40 caliber handgun and began shooting. Rumbley shot in the hand (and survived), but Tamira Johnson, who was coincidentally walking on the street near Rumbley, was also shot and died.DON BROOKS admitted that on January 1, 2012, he murdered Harry Howard during the course of a drug transaction. DON BROOKS further admitted that on January 7, 2012, he attempted to kill an individual who was seen talking with the police about the Howard murder.
DON BROOKS also admitted that on January 4, 2012, he murdered Lamont Phillips in front of his residence in New Orleans during the course of a drug transaction. According to a cooperating witness who was with Phillips just before the murder, Phillips engaged in a cellphone conversation with an individual he/she knew as “Crip” discussing making a drug deal. After the cell phone conversation, Phillips retrieved the drugs “Crip” requested from his house. Phillips then left to conduct the deal with “Crip.” The witness then heard numerous gunshots, looked out the window, and saw Phillips lying in street. According to the responding NOPD officers and other cooperating individuals, Phillips made a dying declaration that “Crip did me” just before expiring.
The case was investigated by the Drug Enforcement Administration and the New Orleans Police Department. The prosecution was handled by Assistant United States Attorney Sean Toomey.
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Bristol Man Sentenced to 210 Months for Illicit Sexual Conduct with A MinorRead the Press Release
ABINGDON, VIRGINIA -- - United States Attorney Timothy J. Heaphy announced today that David Lee Huggard, 48, of Bristol, Va., was sentenced last week to 210 in prison at a sentencing hearing in the United States District Court for the Western District of Virginia in Abingdon.
Huggard had earlier entered a plea of guilty to one count of traveling in interstate commerce with the intent to engage in illicit sexual conduct.
According to evidence presented at his guilty plea and sentencing hearings by Assistant United States Attorney Zachary T. Lee, Huggard, a long-haul interstate truck driver, made a cross-country trip with a four-year old minor child during the month of December 2012. Following the child’s return to Bristol, the child was interviewed at the Bristol-Washington County Children’s Advocacy Center and disclosed that sexual contact had occurred with Huggard during the course of the cross-country trip.
Huggard was arrested on January 26, 2013, by agents with the Federal Bureau of Investigation and a detective with the Bristol Virginia Police Department. Upon his arrest, Huggard admitted to engaging in oral sex with the four-year old child.
The investigation of this case was conducted bythe Bristol Virginia Police Department Criminal Investigation Division and the Federal Bureau of Investigation. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.
Arlington Man Sentenced to 480 Months in Federal Prison for Emailing Child PornographyRead the Press Release
FORT WORTH, Texas — Barry Robert Turner, 43, of Arlington, Texas, was sentenced this morning by U.S. District Judge John McBryde to 480 months (40 years) in federal prison following his guilty plea in July 2013 to one count of distribution of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, in December 2012, Turner used the Internet and Google G-mail to email a one-minute video of child pornography, depicting a toddler, to another individual.
According to the complaint filed in the case, in October 2012, Turner responded to an advertisement on Craigslist for taboo phone sex and continued to correspond with the individual who had placed the ad. Turner sent the individual a video of child pornography and in subsequent emails and texts they discussed the child porn images they shared.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Aisha Saleem.
Alorton Man Pleads Guilty to “Crack” Cocaine DistributionRead the Press Release
On November 14, 2013, Dione J. Joyce, a thirty-one year old Alorton, Illinois, man pled guilty in federal district court, in East St. Louis, to distribution of cocaine base, in the form commonly known as “crack” cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Joyce is scheduled for sentencing on March 7, 2014, at which time he faces a maximum sentence of 20 years in prison and a fine of up to $1,000,000, not more than 3 years of supervised release after his prison term, and a mandatory special assessment of $100.
Facts presented in court revealed that Joyce sold over 100 grams total of cocaine base in the form of “crack” on April 26, 2013, May 1, 2013, and May 22, 2013, to a confidential informant in East St. Louis, Illinois, at the direction and arrangement of ATF agents.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Alabama Man Indicted in Scheme to Defraud Military Sub-ContractorRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), and Frank Robey, Director, Major Procurement Fraud Unit (MPFU), U.S. Army Criminal Investigation Command, announce the indictment of defendant Stanley P. Phillips, 47, of Dothan, Alabama. Phillips is charged with seven counts of wire fraud, in violation of Title 18, United States Code, Section 1343. Phillips is scheduled for arraignment on November 20, 2013 in West Palm Beach before U.S. Magistrate Judge James M. Hopkins.
According to the indictment, Phillips engaged in a scheme to defraud a subsidiary of Day & Zimmermann International, Inc. (D&Z) of over $600,000. D&Z was a military sub-contractor who had been engaged to build a Weak Acetic Acid Recovery Facility Plant, known as the WAARP Project, at the Holston Army Ammunition Plant in Kingsport, Tennessee. Phillips was the D&Z Construction/Site Manager on the WAARP Project. Phillips used his position with D&Z to influence D&Z into hiring a small company called HSIII as a subcontractor on the WAARP Project. In turn, Phillips had HSIII hire a company called RGS Professional Services, Inc. (RGSPS) to ostensibly do work on behalf of HSIII on the WAARP Project. In fact, RGSPS had been incorporated by Phillips in Florida and was actually a nursing registry which was not capable of providing any services on the WAARP Project. Phillips did not disclose his ownership in RGSPS to HSIII, and made sure HSIII did not disclose RGSPS to D&Z. Phillips directed D&Z to pay HSIII monies which were earmarked for RGSPS, and which were ultimately used by Phillips for his personal benefit.
If convicted, the maximum penalties for each charge are twenty years in prison, up to three years supervised release, and a fine of $250,000 or not more than twice the gross gain or loss form the offense, whichever is greater.
Mr. Ferrer commended the investigative efforts of the FBI, DCIS and the U.S. Army Criminal Investigation Command. This case is being handled by Assistant U.S. Attorney Carolyn Bell.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
"Trick or Treat Bandit" Sentenced to Federal Prison for Series of Austin Bank RobberiesRead the Press Release
In Austin today, 34-year-old Antonio Cervantez of Austin, dubbed by law enforcement as the “Trick or Treat Bandit,” was sentenced to 11 years in federal prison followed by five years of supervised release for committing several Austin bank robberies announced United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez, San Antonio Division, and Austin Police Chief Art Acevedo.
Cervantez, who has remained in custody since his arrest on May 29, 2013, received four years in federal prison for bank robbery plus a mandatory seven-year-consecutive prison term for possession of a firearm during a crime of violence. In addition to the prison term, United States District Judge Sam Sparks ordered that Cervantez pay a combined restitution in the amount of $127,885.49 to four different financial institutions—Bank of America, Wells Fargo, Capital One and International Bank of Commerce.
“It’s hard to know what someone considers when planning and committing an armed robbery, but this case should make them think about the fact that they’ll likely spend a long time in prison if we have anything to do with it,” stated United States Attorney Robert Pitman.In August, Cervantez pleaded guilty to the charges. By pleading guilty, Cervantez admitted that on the afternoon of May 29, 2013, he robbed the Bank of America located on West Parmer Lane in Austin. A bank customer, who witnessed the robbery from the drive-through banking lane, called the police and followed Cervantez after he fled the scene. Cervantez drove to his residence in the 4300 block of Northridge where authorities subsequently arrested him and recovered approximately $30,000 stolen from the bank and a .380 caliber firearm. According to court records, Cervantes is also responsible for committing seven other bank robberies in Austin dating back to October 2009.
“This case highlights the FBI’s commitment to working with our partners in the Central Texas Violent Crime Task Force, to aggressively investigate and prosecute dangerous serial armed bank robbers, who threaten the safety of our public,” stated FBI SAC Armando Fernandez.
This case was investigated by the Austin Violent Crime Fugitive Task Force. The Task Force is made up of investigators from the Federal Bureau of Investigation, Austin Police Department and the Round Rock Police Department. Assistant United States Attorney Gregg N. Sofer prosecuted this case on behalf of the Government.
14 November 2013
Zimbabwean Man Sentenced for Federal Tax ViolationsRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas - A 39-year-old Zimbabwean man living in Dallas, Texas has been sentenced to federal prison for tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Moses Mukuka, formerly living in Pocatello, Idaho, was sentenced to 46 months in federal prison for his role in two conspiracies to file false claims for refunds with the IRS. Mukuka was sentenced on Nov. 12, 2013, by U.S. District Judge Thad Heartfield.
According to the court documents, Mukuka entered into one conspiracy with another individual to place flyers around the Idaho State University campus, advertising himself as an accounting student, which he was not, and offering to do income tax returns for a $10 fee. Mukuka received paperwork from students to prepare their taxes and then sent the information out-of-state to the other individual to prepare the tax returns. The tax returns were submitted to the IRS with false information, including the number of dependents, claims as head-of-household, and other fictitious entries designed to increase the refund amount. Mukuka then distributed a small portion of the actual refund to the taxpayer, representing it was the entire refund, and failed to provide copies of the returns to the taxpayers. Mukuka admitted that he was aware the tax returns were false. As part of his sentence for this conspiracy, Mukuka was ordered to pay restitution in the amount of $1,463,116.00.
In the other conspiracy, Mukuka and his co-conspirators acquired the personal identification information of others, including their Electronic Filing Identification Numbers, and they used that information to file false tax refund claims with the Internal Revenue Service. Mukuka and his co-conspirators received at least $1,056,681.00 in fraudulent tax refunds and intended to cause a loss of $1,700,000 as a result of these false tax refund claims. As part of his sentence for this conspiracy Mukuka must pay restitution in the amount of a $1,056,681. Mukuka was ordered to be deported after he completes his prison term
This prosecution resulted from an investigation conducted by special agents with the IRS Criminal Investigation. The matter was prosecuted by Assistant U.S. Attorney Jack B. Haycock in Idaho before it was transferred to the Eastern District of Texas and prosecuted by Assistant U.S. Attorney Christopher Eason.
Youngstown Man Indicted for $1 Million Fraud Involving Distressed HomesRead the Press Release
A federal grand jury returned a 59-count indictment charging a Youngstown fraudulently obtaining ownership of more than two dozen distressed properties in Mahoning County and resold them for about $1 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Ondrea Shabazz, 47, faces multiple counts of real estate fraud, identity fraud and mail fraud.
“This defendant is accused of taking advantage of blight and distress in Youngstown neighborhoods as a way to enrich himself,” Dettelbach said.
“This defendant willfully decided that greed beat out any sense of decency when he forged signatures to fraudulently obtain ownership of distressed, soon-to-be-demolished homes and sold them to his clients for a profit,” Anthony said.
Counts 1 through 29 of the indictment charge that beginning in or about October 2011, through June 2013, Shabazz knowingly devised a scheme to defraud real estate owners and unsuspecting third parties in order to obtain money and property by means of false and fraudulent pretenses, representations, and promises. The manner and means used to accomplish the objectives of the scheme included the following, according to the indictment:
a. Shabazz and others known and unknown operated Real Estate Investment Connection, LLC, a company that fraudulently obtained and resold distressed properties in the Youngstown, Ohio, area.
b. Shabazz identified distressed properties that were foreclosed and/or targeted for demolition. After identifying these properties, Shabazz created fraudulent quit claim deeds that contained forged signatures of the real estate owners and, in some instances, the forged signature of a Notary Public. The deeds purported to transfer the property to Ondrea Shabazz, Real Estate Investment Connection, LLC, or others associated with Shabazz.
c. Shabazz and others working at his direction then filed the fraudulent quit claim deeds with the Recorder’s Office or the Auditor’s Office in Mahoning County. Once the filing fee was paid and the deed was recorded, the recorded deed was mailed to Ondrea Shabazz, Real Estate Investment Connection, LLC, or others associated with Shabazz.
d. After receiving the recorded deed in the mail, Shabazz resold the property to individuals and companies under the false pretense that the property was legally owned by Shabazz, Real Estate Investment Connection, LLC, or others associated with Shabazz.
e. In other instances, Shabazz fraudulently acted as an intermediary who had the authority to broker real estate transactions between the real estate owners and an unsuspecting third party. Shabazz prepared quit claim deeds with forged signatures of the property owners and/or of a notary public. Shabazz then gave the deeds to the unsuspecting third party and instructed them to record the deeds with the Recorder’s Office or the Auditor’s Office in Mahoning County. Once the filing fee was paid and the deed was recorded, the recorded deed was mailed to the unsuspecting third-party.
f. As a result of this activity, Shabazz defrauded property owners and unsuspecting third parties out of money and property valued over $1 million.
g. Shabazz, for the purpose of executing such scheme and artifice, placed and caused to be placed in any post office and any authorized depository for mail matter, any matter or thing, to-wit: 29 fraudulent quit claim deeds to be delivered by the United States Postal Service to Shabazz, Real Estate Investment Connection, LLC, or others associated with Shabazz.
Counts 30-59 of the indictment charge that from October 2011 through June 2013, Shabazz did knowingly possess and use, without lawful authority, a means of identification of another person during and in relation to mail fraud.
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 sentence 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 Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment in 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.
Wayne Man Sentenced in Connection with Scheme to Defraud Huntington Small BusinessRead the Press Release
Shawn Osburn created falsified work orders that were used to steal more than $10K in supplies from Huntington-based Justice Glass and Supply Co.
CHARLESTON, W.Va. – A Wayne County man who defrauded a Huntington-based small business out of more than $10,000 in supplies was sentenced today to five years’ probation, announced U.S. Attorney Booth Goodwin. Shawn Osburn, 44, previously pleaded guilty in April to wire fraud. Osburn, a former employee for Huntington-based residential window supplier Justice Glass and Supply Company (“Justice Glass”), prepared and submitted false work orders for supplies at various times during his employment with Justice Glass that began in 2008 and continued through October 2010.
During the scheme, Osburn prepared work orders that contained false information and submitted the orders, generally by using telephone and fax, to suppliers. After receiving the products from the company’s supplier, Osburn stole the items and later sold them for cash.
Osburn told investigators that the profits in which he had obtained as a result of the fraudulent work orders were not given to Justice Glass. Osburn illegally sold a total of at least $13,000 in stolen supplies.
The Court ordered Osburn to pay full restitution, with interest, to Justice Glass in the amount of $260 each month.The FBI conducted the investigation. Assistant United States Attorneys Philip Wright and Meredith George Thomas handled the prosecution. The sentence was imposed by United States District Judge Thomas E. Johnston.
This case was brought as part of the United States Attorney’s Office’s initiative to prosecute crimes against small businesses. In September 2010, U.S. Attorney Goodwin created and launched a comprehensive plan to protect small businesses and nonprofit agencies from fraud and abuse. Goodwin has redoubled efforts to identify, investigate and prosecute dishonest employees and other criminals who defraud or embezzle from small businesses.
The Crimes Against Small Business Initiative strives to protect businesses and nonprofit organizations by working in partnership with the business community, along with state and local law enforcement officials, to ensure that occurrences of fraud, embezzlement, scams and other crimes targeting small businesses are prosecuted to the fullest extent of the law.
Waialua Brothers Convicted of Methamphetamine TraffickingRead the Press Release
HONOLULU – After a five day trial in United States District Court in Honolulu, a federal jury today found Jacob Drummondo-Farias, 30, of Waialua, guilty of conspiring to distribute and possess, with intent to distribute, 50 grams or more of methamphetamine between 2011 and January, 2012. Earlier during the trial, on November 8, 2013, Drummondo-Farias’ brother and co-defendant, Joshua Lew, 28, also of Waialua, pled guilty to conspiring to distribute and possess, with intent to distribute, 50 grams or more of methamphetamine. The jury acquitted Drummondo-Farias of a second charge of a distribution of approximately 54 grams of methamphetamine in December 2010.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to evidence presented at trial Drummondo-Farias and Lew agreed with other individuals to distribute methamphetamine that was sent from California, via express mail services, to Honolulu during 2011 and 2012. The evidence also reflected that Drummondo-Farias and Lew orchestrated the shipment of 852 grams of methamphetamine which was intercepted at the Honolulu Airport on January 26, 2012 by federal law enforcement authorities.
Lew faces up to life in prison with a mandatory minimum ten year term of imprisonment. Drummondo-Farias also faces up to life in prison, however, because he was previously convicted of a federal drug felony, he faces a mandatory minimum sentence of 20 years imprisonment. Both defendants will be sentenced by U.S. District Judge J. Michael Seabright on February 24, 2014.
The investigation which resulted in the charges in the case was conducted by the Drug Enforcement Administration and United States Postal Service. Assistant U.S. Attorney Mark A. Inciong handled the prosecution.
Visa Fraud Scheme Results in Federal Criminal ChargesRead the Press Release
SAIPAN — Alicia A.G. Limtiaco, United States Attorney for the District of Guam and the Northern Marina Island, announced the filing on October 22, 2013, of federal criminal charges against MARIANO K. PANGELINAN, ROSABELLA P. CRUZ, and HELEN N. APARENTE, stemming from their involvement with a corporation called ARCH INTERNATIONAL (hereinafter called ARCH).
The federal criminal indictment is attached. It alleges that the three individuals held ARCH out as a recruiting agency that could help aliens obtain jobs and employment-based CW-1 permits for certain fees, but, after taking various fees from the aliens, did not find them jobs but instead submitted CW-1 petitions to federal immigration authorities in which they falsely stated that ARCH itself employed the aliens.
The indictment charges Conspiracy to Commit Visa Fraud and to Defraud the United States, in violation of Title 18, United States Code, § 371; Visa Fraud, in violation of Title 18, United States Code, § 1546(a); and False Statement, in violation of Title 18, United States Code, § 1001(a)(2). The Conspiracy and False Statement charges carry maximum potential sentences of five years in federal prison and a $250,000 fine. The Visa Fraud charges carry a maximum potential sentence of ten years in federal prison and a $250,000 fine.Defendants PANGELINAN and CRUZ made their initial appearances before U.S. Magistrate Judge Heather L. Kennedy on October 25, 2013, and were arraigned before U.S. District Court Judge Ramona V. Manglona on November 4, 2013. Trial is scheduled for December 30, 2013, at 10:00 AM. Defendant APARENTE is still at large.
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty. The investigation was conducted by Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Ross K. Naughton.
Indictment
Utah Woman Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced that on November 13, 2013, Tahlene Shaw Serawop, a 25-year-old Ute Tribal Member, was sentenced by Chief United States District Judge Nancy D. Freudenthal to 21 months imprisonment, three years of supervised release, and was ordered to pay a $100.00 special assessment and $616,657.43 in restitution. Ms. Serawop previously pled guilty to the offense of assault resulting in serious bodily injury. This case was investigated by the FBI and BIA law enforcement.
U.S. Attorney Heaphy Presents Members of Abbott Prosecution Team with Department of Justice Achievement AwardRead the Press Release
ROANOKE, VIRGINIA –Assistant United States Attorneys Randy Ramseyer and Rick Mountcastle of the U.S. Attorney’s Office for the Western District of Virginia, were two of 154 Department of Justice employees nationwide to be recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director H. Marshall Jarrett with a 2013 Director’s Award.
United States Attorney Timothy J. Heaphy presented the Director’s Awards to members of the Abbott prosecution team at a ceremony yesterday in Roanoke.
“The prosecution of Abbott Labs resulted in a total settlement of $1.5 billon, the largest single-drug settlement of an off-label pharmaceutical fraud case in the history of the Department of Justice,” U.S. Attorney Heaphy said at today’s ceremony. “Significant federal cases like the Abbott matter help deter waste, fraud and abuse in the health care system. AUSAs Ramseyer and Mountcastle and other lawyers in this office have historically tackled a number of these labor-intensive cases. Time and again our AUSAs have proven to be the very best in the business in handling these complex cases. We will try to perpetuate their success and continue our work in this important area.”
In May 2012, global health care company Abbott Laboratories Inc., pleaded guilty in United States District Court in Abingdon, Virginia, to unlawful promotion of the prescription drug Depakote for uses not approved as safe and effective by the Food and Drug Administration. As part of its plea agreement with the Department of Justice, the company agreed to pay $1.5 billion to resolve criminal and civil liability arising from the company’s conduct. Following a lengthy investigation led by AUSAs Ramseyer and Mountcastle, Abbott pleaded guilty to misbranding Depakote by promoting the drug to control agitation and aggression in elderly dementia patients and to treat schizophrenia when neither of these uses were supported by evidence or were FDA approved. During a ceremony today at the United States Attorney’s Office for the Western District of Virginia in Abingdon, U.S. Attorney Timothy J. Heaphy honored those on the prosecution team for their hard work and dedication to the lengthy successful federal investigation of Abbott Laboratories.
In letters to Ramseyer, Mountcastle, Attorney General Eric Holder told the awardees that they showed “exceptional efforts to promote the fair and impartial administration of justice for all Americans.”
“Each day the members of the US Attorneys’ community go to work for the citizens of this country with one goal in mind – to do everything they can to protect the rights of all Americans,” said EOUSA Director Jarrett. “I am continually humbled by their resiliency, dedication, and unparalleled work ethic to accomplish this noble mission. Today’s awardees exemplify what it truly means to be a patriot and it is an honor to recognize them for their extraordinary service.”
U.S. Attorney Heaphy presented AUSA Randy Ramseyer, and members of Abbott prosecution team, with Department of Justice Achievement Award at a ceremony on November 13, 2013
U.S. Attorney Files Civil Complaint and Stipulation of Settlement to Forfeit Ancient Italian Tomb PaintingRead the Press Release
A civil complaint was docketed today in federal court in the Eastern District of New York to forfeit a triangular Italian fresco fragment (the “Fresco”) that was falsely described as Macedonian when it was shipped from Switzerland to the United States in April 2011. The complaint alleges that the Fresco is the property of Italy and is protected under that country’s laws. Upon its arrival in the United States, the Fresco was seized by U.S. Customs and Border Protection (“CBP”) with the assistance of Homeland Security Investigations (“HSI”). The government also filed a stipulation of settlement with the shipper, in which the shipper abandoned its interest in the Fresco and consented to its forfeiture.
The complaint and settlement were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James T. Hayes, Jr., Special Agent in Charge, U.S. Department of Homeland Security, HSI, New York.
“Returning looted cultural property to its country of origin remains a priority of this office,” stated United States Attorney Lynch. “This artifact belongs to the people of Italy. It is a part of their history and heritage. By filing this action, we are using the legal tools available to us to return it to its rightful owners.” Ms. Lynch thanked the Italian Ministry of Cultural Heritage and the Italian Carabinieri Protection of Cultural Heritage Command for their assistance.
“The unlawful theft, transportation, smuggling and sale of precious cultural property – like the ancient tomb painting being forfeited today – has become increasingly difficult as a result of increased collaboration amongst law enforcement around the globe," said James T. Hayes Jr., special agent in charge of HSI New York. “HSI and our partners at CBP work more closely than ever to ensure the legitimacy of cultural property and antiquities that are brought into the United States”.
Italian authorities have identified the Fresco as the pediment of a painted tomb that originated near the ancient city of Paestum, Italy. The Paestum archeological site, which has been designated as a UNESCO World Heritage site, has suffered from thefts and illegal excavations. The painted tombs of Paestum were first excavated in 1969 and typically had four walls with pitched roofs, like small houses. Thus, as the pediment of one end of a painted tomb, the Fresco would have stood opposite a wall with a similarly painted pediment. Indeed, an exact match – a single wall whose pediment is identical to the Fresco in both dimensions and decoration – stands in the National Archeological Museum of Paestum in Italy.
When the Fresco was shipped to the United States, the shipper declared that the Fresco’s country of origin was Macedonia. CBP detained the Fresco on arrival and requested additional information on the Fresco’s history of ownership, or provenance. The shipper then supplied an affidavit repeating that the Fresco was Macedonian. The affidavit further stated that the Fresco had been purchased from a Swiss art gallery in 1959 – ten years prior to the excavation of the painted tombs at Paestum. An expert in ancient paintings advised HSI that the piece originated in Italy, not Macedonia, leading HSI to inquire with Italian authorities.
Upon being presented with evidence that the Fresco originated in Italy, not Macedonia, the shipper entered into a stipulation with the United States agreeing to forfeit the piece so that it can be repatriated to Italy.
The government’s case is being handled by Assistant United States Attorney Karin Orenstein.
E.D.N.Y. Docket No. 13-CV-6286 (CBA)
Fresco Stipulation of Settlement
Fresco ComplaintTwo Mahoning Valley Men Indicted on Federal Firearms ChargesRead the Press Release
Two men from the Mahoning Valley were indicted on federal firearms charges, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
A federal grand jury returned a one-count indictment charging Kenneth D. Key, age 28, of Warren, Ohio, with being a felon in possession of a firearm.
The indictment charges that on or about August 18, 2013, Key possessed a Ruger, model P95, 9mm pistol, serial number 316-53865, and ammunition, despite a previous conviction for possession of firearms in furtherance of drug trafficking crime, United States District Court, Northern District of West Virginia Case No. 2:04CR22 on or about May 12, 2005.
In an unrelated case, a federal grand jury returned a one-count indictment charging Leroy Gore, age 40, of Campbell, Ohio, with being a felon in possession of a firearm.
The indictment charges that on or about October 12, 2013, Gore possessed a Glock, model 30, .45 caliber pistol, after he had been previously convicted of involuntary manslaughter and felonious assault in the Mahoning County, Ohio, Court of Common Pleas.
If convicted, the defendants’ 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 sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigations preceding the indictments were conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Campbell Police Department. The cases are being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment in 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.
Two KC Men Indicted for Illegal Firearms Following Fatal CollisionRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Kansas City, Mo., men have been indicted by a federal grand jury for illegally possessing firearms following a high-speed car chase that ended with a collision that killed an employee of the Kansas City Police Crime Laboratory.
Larneal D. Davis, 28, and Christopher L. Murray, 25, both of Kansas City, were charged with being felons in possession of firearms in an indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Nov. 12, 2013. That indictment was unsealed and made public today upon Murray’s arrest and initial court appearance.
The federal indictment alleges that Davis and Murray, who have each been convicted of a felony, were in possession of a Taurus .40-caliber semi-automatic pistol and a Ruger .380-caliber semi-automatic pistol on July 6, 2013. Davis was arrested on that day following a high-speed car chase that resulted in a fatal collision with another vehicle and is in state custody.
Michael Chou, a crime scene technician at the Kansas City Police Crime Laboratory, was killed when his vehicle was broadsided by a vehicle that was fleeing from Kansas City police officers. Davis was arrested a short distance from the accident scene after a brief pursuit on foot. Officers found the two pistols inside the wrecked vehicle. Murray was arrested today.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the Kansas City, Mo., Police Department.Two Head to Prison for Attempted "Ice" DistributionRead the Press Release
McALLEN, Texas – Raymundo Jose Cabrera-Paredes, of Mission, and Estevan Ochoa-Gomez, of Huixtla, Chiapas, Mexico, have been ordered to federal prison for more than 20 years following their involvement in the distribution of crystal methamphetamine from McAllen to Dallas, announced United States Attorney Kenneth Magidson along with along with Javier Peña, special agent in charge of the Drug Enforcement Administration (DEA). Cabrera-Paredes, 47, and Ochoa-Gomez, 44, pleaded guilty in January 2013.
Today, U.S. District Judge Micaela Alvarez, who accepted the guilty pleas, handed Cabrera-Paredes and Ochoa-Gomez respective sentences of 292 and 262 months in federal prison. In handing down the sentence, Judge Alvarez noted their extensive involvement in the narcotics transactions. The court also noted Cabrera-Paredes was involved in two additional narcotics transaction in April and May of 2012 that, respectively, involved crystal methamphetamine and cocaine. Cabrera-Paredes will serve a five-year-term of supervised release. Ochoa-Gomez is expected to face deportation proceedings after he serves his sentence.
On Oct. 16, 2012, Cabrera-Paredes met with an undercover agent and negotiated the transportation of eight kilograms of crystal methamphetamine from McAllen to Dallas. At the time of the meeting, he claimed his associate, Ochoa-Gomez, was wrapping the narcotics for transportation. Two days later, Ochoa-Gomez delivered to the crystal methamphetamine to the undercover agent for delivery to Dallas.
A subsequent analysis of the narcotics revealed the net weight of the crystal methamphetamine was 12.01 kilograms and that the narcotics had purity level of 98.4%. A purity level of greater than 80% qualifies the narcotic as “ice.”
Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by DEA. Assistant United States Attorney Juan Alanis is prosecuting the case.
Two District Men Plead Guilty to 2011 Murder of Retired Vietnam Veteran in Southeast Washington-Victim, 71, Was Slain in His Apartment After Trying to Protect His Wife-Read the Press Release
WASHINGTON- James Brewer, 27, and Stephen Page, 20, of Washington, D.C., have pled guilty to charges of second-degree murder while armed in the 2011 slaying of a 71-year-old man in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
Both men entered the guilty pleas on Nov. 13, 2013, in the Superior Court of the District of Columbia. The Honorable Herbert B. Dixon, Jr. scheduled sentencing for Jan. 10, 2014.
According to a proffer of facts presented during the plea hearing, on June 27, 2011, at about 9:15 p.m., Brewer, Page, Anthony Thomas, and a fourth man walked into an apartment building in the 2300 block of Good Hope Road SE. They entered the front lobby and gathered at the elevator. Then they took the elevator to the seventh floor.
Minutes later, Brewer, Page and Thomas entered the apartment of Solomon Reese, 71, a Vietnam veteran who supplemented his retirement income by selling cigarettes to neighbors in the area. Mr. Reese was known by many neighbors as the “cigarette man.”
While the men were inside, Mr. Reese’s wife, meanwhile, returned to the apartment from the building’s trash room. Upon hearing scuffling, she began to scream. At that point, Brewer pulled her inside the apartment and threw her toward the front room sofa. Then, as she continued to scream, Thomas placed a blanket over her mouth. Mr. Reese, who initially struggled with Page over a pistol that Page was holding, grabbed Thomas. Page warned him to let go. Then, when Mr. Reese reached into his pocket, Page shot him several times.
Brewer, Page and Thomas left the apartment, taking two bags containing cigarettes and travelers’ checks. Mr. Reese was taken to a hospital, where he died from his injuries. He had been shot multiple times, with bullets hitting him in the chest, abdomen and thigh.
Detectives with the Metropolitan Police Department (MPD) obtained surveillance video showing Brewer, Page, Thomas, and the fourth man entering the building and getting onto the elevator. Footage from approximately seven minutes later showed Brewer, Page and Thomas moving quickly out of the stairwell on the basement level, with Brewer carrying two bags.
On July 14, 2011, the U.S. Marshals Service arrested Brewer in Newport News, Va., and transported him to the District of Columbia for presentment on a charge of first-degree murder while armed. While awaiting presentment in the Superior Court of the District of Columbia, Brewer switched armbands with another arrestee and pretended to be that person. He then signed release papers under that arrestee’s name and left the courthouse. Marshals discovered the ruse and searched for Brewer, who surrendered the following day.
Thomas, 25, earlier pled guilty to a charge of voluntary manslaughter while armed and is awaiting sentencing.
In announcing the pleas, U.S. Attorney Machen praised the work of the MPD detectives, officers, crime scene technicians, and forensic specialists who worked on the case. He also expressed appreciation for the assistance provided by the U.S. Marshals Service. In addition, he praised those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Alesha Matthews Yette; Litigation Technology Specialists Kimberly Smith, Leif Hickling, and Joshua Ellen; Jelahn Stewart, chief of the Victim Witness Assistance Unit, and Victim/Witness staff members Maria Shumar, Marcia Rinker, Michael Hailey, Katina Adams-Washington, M. Laverne Forrest, Tanya Via, and David Foster. Finally, he commended the efforts of Assistant U.S. Attorneys Gary Wheeler, and Scott Sroka, who secured the indictment in the case and handled the prosecution which led to the plea.
13-392Tuscaloosa Man Gets 25 Years in Prison for String of Convenience Store RobberiesRead the Press Release
TUSCALOOSA -- A federal judge today sentenced a Tuscaloosa man to 25 years in prison for his part in a string of armed gas station convenience store robberies in December 2011, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.U.S. District Judge L. Scott Coogler sentenced JUWAN HUNTER, 20, in accordance with a binding plea agreement Hunter entered with the government in July. The agreement specified a 25 year prison sentence for Hunter's pleas of guilty to four Tuscaloosa County robberies and to brandishing a firearm during one of those robberies. Brandishing a firearm during a crime of violence carries a minimum sentence of seven years in prison and a maximum sentence of life, and the sentence must be served after completion of any other sentence imposed for the crime.
Hunter pleaded guilty to robbery of the University Chevron on U.S. 11 in Cottondale on Dec. 8, 2011; the Springbrook Chevron on East McFarland Boulevard in Tuscaloosa on Dec. 16, 2011; the Coaling Marathon Oil on U.S. 11 in Coaling on Dec. 18, 2011; and the Big Sandy Food Mart on Alabama 69 in Moundville on Dec. 21, 2011. He pleaded guilty to brandishing a firearm during the Coaling Marathon Oil robbery.
The FBI, Tuscaloosa Sheriff's Office, Tuscaloosa Police Department and the Coaling Police Department investigated the case. Assistant U.S. Attorney Joseph P. Montminy is prosecuting the case.
Touissant SentencingRead the Press Release
BATON ROUGE, LA – Acting United States Attorney J. Walter Green announced that JOSEPH T. TOUSSAINT, age 33, of Baton Rouge, Louisiana, who was convicted of being a felon in possession of a firearm, was sentenced today by Chief Judge Brian A. Jackson.
On January 7, 2012, officers responded to a Baton Rouge apartment complex in reference to an armed robbery. After being positively identified, TOUSSAINT was arrested and a search warrant was obtained for his residence. A search of TOUSSAINT’S residence revealed a loaded 12 gauge shotgun in between mattresses in a bedroom.
At sentencing, Judge Jackson concluded that TOUSSAINT used the shotgun in connection with the robbery. Noting TOUSSAINT’S extensive criminal history, including his prior convictions for burglary, illegal use of a weapon, and unauthorized entry of an inhabited dwelling, Judge Jackson found TOUSSAINT to be an armed career criminal and sentenced him to 180 months in prison and four years of supervised release.
Acting United States Attorney Walt Green stated, “Violent crimes and firearm related offenses are and will remain a top priority of the United States Attorney’s Office. We congratulate our BRAVE partners for their hard work and their dedication to make this a safer community.”
East Baton Rouge Parish District Attorney Hillar C. Moore stated, “The results in this investigation demonstrate the close coordination of our BRAVE partners in identifying, arresting, and prosecuting violent offenders who commit crimes in the 70805 area of Baton Rouge.”
The investigation of TOUSSAINT was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the East Baton Rouge Parish Sheriff’s Office as part of the Baton Rouge Area Violence Elimination (BRAVE) project. The BRAVE project is designed to reduce or eliminate violent crimes by targeting gang-related violence and criminal offenses occurring in, or associated with, the most violent areas within Baton Rouge. The Baton Rouge Police Department, East Baton Rouge Sheriff’s Office, Louisiana State Probation and Parole, Louisiana State Police, ATF, FBI, DEA, U.S. Marshals, local community partners, researchers from Louisiana State University, the Mayor-President’s Office, the East Baton Rouge Parish District Attorney’s Office, and the United States Attorney’s Office for the Middle District of Louisiana have all joined together to support and coordinate the BRAVE initiative. This case is being prosecuted by Assistant U.S. Attorney Reginald E. Jones.
Texas Honey Broker Sentenced to Three Years in Prison for Avoiding $37.9 Million in Tariffs on Chinese-Origin HoneyRead the Press Release
CHICAGO — A Texas honey broker was sentenced today to three years in federal prison for illegally brokering the sale of hundreds of container loads of Chinese-origin honey, which was misrepresented as originating from India or Malaysia, to avoid anti-dumping duties when it entered the United States. The defendant, JUN YANG, pleaded guilty in March to facilitating illegal honey imports by falsely declaring that the honey originated in countries other than China to avoid $37.9 million in anti-dumping duties.
Yang, 40, of Houston, operated National Honey, Inc., which did business as National Commodities Company in Houston, and brokered the sale of honey between overseas honey suppliers and domestic customers. He was ordered to begin serving his sentence on Jan. 15, 2014, by U.S. District Judge Charles Kocoras, who cited the “inescapable harm” to the U.S. honey industry in imposing the sentence.
Yang has already paid financial penalties totaling $2.89 million to the government, including a maximum fine of $250,000, mandatory restitution of $97,625, and agreed restitution of $2,542,659.
“This is a significant sentence against a perpetrator of one of the largest food fraud schemes uncovered in U.S. history,” said Gary Hartwig, Special Agent-in-Charge of HSI Chicago. “Unbeknownst to Yang, he was dealing with an undercover HSI agent who was one step ahead of his illegal activities. Together with our partners at Customs and Border Protection, we will continue to protect American industries from deceptive import practices, while facilitating the lawful flow of goods across our borders that is so critical to the U.S. economy.”
According to court documents, Yang caused transportation companies to deliver to U.S. honey processors and distributors 778 container loads of honey, which were falsely declared at the time of importation as being from Malaysia or India, knowing that all or some of the honey had actually originated in China. As a result, the honey, which had an aggregate declared value of nearly $23 million when it entered the country, avoided anti-dumping duties and honey assessments totaling more than $37.9 million.
In addition, Yang admitted that he sold purported Vietnamese honey that tested positive for the presence of Chloramphenicol, an antibiotic not allowed in honey or other food products. After learning of the unfavorable test results, Yang obtained new test results that purported to show that the honey was not adulterated, and he instructed the undercover agent to destroy the unfavorable test results. This adulterated honey was seized by the government.
The sentence was announced by Mr. Hartwig and Zachary T. Fardon, United States Attorney for the Northern District of Illinois.
Yang was among a group of individuals and companies who were charged in February of this year in the second phase of an investigation led by agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). See: Two Companies and Five Individuals Charged With Roles in Illegal Honey Imports; Avoided $180 Million in AntiDumping Duties
In December 2001, the Commerce Department determined that Chinese-origin honey was being sold in the United States at less than fair market value, and imposed anti-dumping duties. The duties were as high as 221 percent of the declared value, and later were assessed against the entered net weight, currently at $2.63 per net kilogram, in addition to a “honey assessment fee” of one cent per pound of all honey. In October 2002, the Food and Drug Administration issued an import alert for honey containing the antibiotic Chloramphenicol, a broad spectrum antibiotic that is used to treat serious infections in humans, but which is not approved for use in honey. Honey containing certain antibiotics is deemed “adulterated” within the meaning of federal food and drug safety laws.
In 2008, federal authorities began investigating allegations involving circumventing antidumping duties through illegal imports, including transshipment and mislabeling, on the “supply side” of the honey industry. The second phase of the investigation involved the illegal buying, processing, and trading of honey that illegally entered the U.S. on the “demand side” of the industry.
The government is being represented by Assistant U.S. Attorney Andrew S. Boutros.
Suffolk Man Sentenced to Life in Prison for Role in the Murder of A Federal WitnessRead the Press Release
NORFOLK, Va. – Leroy Scott, 50, of Suffolk, Va., was sentenced today to life in prison for conspiracy, witness tampering, retaliation against a federal witness and the use of a firearm resulting in the murder of a federal witness.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Special in Charge, Karl C. Colder of the Drug Enforcement Administration’s Washington Division Office, made the announcement after sentencing by United States District Judge Mark Davis.
Scott pleaded guilty to the charges on August 16, 2013. According to court documents, Scott was a very high level cocaine dealer who conspired to prevent Junior Bivins, Jr. and other individuals, from testifying in a court proceeding that related to his and his associates’ drug distribution activities, their weapons violations and other criminal offenses. Scott also sought retaliation by hiring men to kill Bivins and two others in Hopewell and Petersburg for providing information to law enforcement officers, which resulted in the first degree murder of Bivins in November of 2001 in Suffolk, Virginia.
This case was investigated by the Drug Enforcement Administration and the Suffolk Police Department and is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation “Dealer’s Choice.” Assistant United States Attorney Laura Everhart prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Statement of the U.S. Attorney’s Office Concerning Federal Search Warrants Executed TodayRead the Press Release
Memphis, TN – Earlier today, federal search warrants were executed upon a number of establishments in Shelby County and North Mississippi. These warrants were filed under seal and are part of an ongoing investigation. Therefore, we have no further comment on this matter at this time.
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Law enforcement agencies involved in the execution of these search warrants include the Memphis Police Department Organized Crime Unit, the United States Secret Service, the United States Marshals Service, the United States Department of Agriculture, and the Tennessee Department of Human Services.Somali Pirates Sentenced to Multiple Life Sentences in Murder of Four Americans Aboard SV QUESTRead the Press Release
NORFOLK, Va. – Somali nationals Ahmed Muse Salad, a/k/a “Afmagalo,” 27, Abukar Osman Beyle, 33, and Shani Nurani Shiekh Abrar, 31, who were previously found guilty of piracy, murder within the special maritime and territorial jurisdiction of the United States, violence against maritime navigation, conspiracy to commit violence against maritime navigation resulting in death, kidnapping resulting in death, conspiracy to commit kidnapping, hostage taking resulting in death, conspiracy to commit hostage taking resulting in death and multiple firearms offenses, were sentenced this week. Salad, Beyle and Abrar were all sentenced to 21 life sentences, 19 consecutive life sentences and 2 concurrent life sentences, and 30 years consecutive, for their role in the February 22, 2011, murder of four Americans aboard the sailing vessel Quest. The victims included: Scott Underwood Adam, Jean Savage Adam, Phyllis Patricia Macay, and Robert Campbell Riggle.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, George Venizelos, Assistant Director in Charge (ADIC) of the FBI’s New York Field Office; Royce E. Curtin, Special Agent in Charge (SAC) of the FBI’s Norfolk Field Office, and Charles T. May, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after sentencing by Chief United States District Court Judge Rebecca Beach Smith.
“These defendants, in violation of U.S. and international law, commandeered an American-flagged sailing vessel, refused to release the hostages to the Navy, and brutally murdered the four Americans on board,” said Acting U.S. Attorney Boente. “The multiple, consecutive life sentences imposed today send a clear message that piracy, hostage-taking, and murder on the high seas will not be tolerated.”
Assistant Director in Charge George Venizelos said, “The sad fact about this case is that four Americans are dead because of the actions taken by the defendants and their associates in the form of modern-day piracy. On a fateful day in February 2011, they boarded the sailing vessel Quest with the goal of using violence to get monetary gains. Today’s life sentences provide a vigorous deterrent to armed bandits roaming our seas. The FBI remains vigilant in our responsibility to bring these pirates to justice.”
Charles T. May, Special Agent in Charge Charles T. May said, "NCIS worked closely with our uniformed partners in the Navy, the FBI, and the United States Attorney's Office of the Eastern District of Virginia in bringing these Somali pirates to justice for their senseless kidnapping and murder of four American citizens. Piracy and other transnational crimes such as narcoterrorism and human trafficking represent global threats to maritime security. NCIS, with our unique mission, is especially well-suited to investigating acts of piracy on the high seas, and we will continue to work with our U.S. and foreign law enforcement partners and prosecutorial entities from the U.S. and foreign nations to eradicate this global menace. "
Salad, Beyle and Abrar, were indicted in a 26-count indictment on July 8, 2011 and were found guilty by a federal jury of all 26 counts on July 8, 2013. According to court records and evidence at trial, Salad, Beyle and Abrar, along with co-conspirators, gained control of the Quest while armed with firearms and a rocket-propelled grenade and took the four Americans hostage on February 18, 2011. Their plan was to take the hostages to Somalia, where they and their additional co-conspirators in Somalia could commence ransom negotiations. While they sailed toward Somalia, they took turns standing armed guard over the hostages; at the same time, United States Navy ships headed towards the Quest to aid the hostages and attempt to secure their safe release.
On February 22, 2011, without provocation and before the hostages could be rescued by members of the military, a co-conspirator fired an RPG in the general direction of the USS Sterett. Witnesses testified that sustained firing came from the Quest and that glass could be seen breaking on the starboard side of the Quest. Witnesses also testified that Salad, Beyle, and Abrar, were the shooters and responsible for the deaths of Scott Adam, Jean Adam, Phyllis Macay, and Robert Riggle. After the gunfire died down, the Navy dispatched SEALS to the Quest. The pirates aboard the Quest began surrendering and some were seen throwing AK-47 rifles into the water.
This case was investigated by the FBI and the Naval Criminal Investigative Service. Assistant United States Attorneys Benjamin L. Hatch, Joseph DePadilla and Brian J. Samuels prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Six Defendants Sentenced to Total of 36 Years in Prison in National Prearranged Services CaseRead the Press Release
St. Louis, MO – Six defendants were sentenced today before United States District Judge Jean C. Hamilton for their roles in one of the largest frauds ever prosecuted in the Eastern District of Missouri. The defendants were sentenced on more than 40 counts of fraud, money laundering and related crimes and received a total of 36 years and one month incarceration. At sentencing, Judge Hamilton recognized that these defendants, acting through National Prearranged Services, Inc. and Lincoln Memorial Life Insurance Company, had defrauded more than 97,000 customers in more than 16 states, hundreds of funeral homes, and multiple financial institutions, causing more than $450 million in losses.
Five of the defendants previously pled guilty to various counts of fraud in June and July of this year, and each of those defendants was sentenced to the terms of imprisonment consistent with their respective plea agreements. Of the defendants who pled guilty, JAMES DOUGLAS CASSITY received the longest sentence of 115 months imprisonment after admitting that he organized and led the fraudulent enterprise. The former CEO of Lincoln Memorial Life Insurance Company, RANDALL K. SUTTON received a sentence of 84 months imprisonment. BRENT DOUGLAS CASSITY, a one-time officer of NPS, received a sentence of 60 months imprisonment. HOWARD A. WITTNER, an attorney for the companies, received a sentence of 36 months imprisonment. Former NPS President SHARON NEKIL PROVINCE received a sentence of 18 months imprisonment.
One defendant, DAVID WULF, the statutorily appointed independent investment advisor entrusted to oversee the prearranged funeral trusts established in Missouri, faced trial in August and was convicted by a jury on 18 counts of bank fraud, wire fraud and wire fraud affecting a financial institution. Wulf was sentenced to 10 years in prison.
"Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation.
"This is the largest corporate fraud case prosecuted in the Eastern District of Missouri," said Dean C. Bryant, Special Agent in Charge of the FBI St. Louis Division. “This case affects us all because part of the life insurance premium we pay goes to cover such loss from fraud.”
These sentences mark the culmination of a multi-year investigation and prosecution that brought together three federal law enforcement agencies, numerous state regulatory agencies and the Department of Justice to unravel a complex and immense fraud that spanned more than 15 years. According to court documents and testimony presented at trial, beginning as early as 1992 and continuing until 2008, NPS sold prearranged funeral contracts in several states, including Missouri, Illinois and Ohio. During that time, insurance companies affiliated with NPS issued life insurance policies related to those prearranged funeral contacts. As part of the contracts, the total price for funeral services and merchandise for an individual was agreed upon, and that price would remain constant regardless of when the funeral services and merchandise would be needed. Customers entering into prearranged funeral contracts would usually pay a single sum of money up front to NPS either directly or through a funeral home that was also a party to the contract. NPS represented to individual customers, funeral homes and state regulators that funds paid by customers under the prearranged funeral contracts would be kept in a secure trust or insurance policy as required under state law.
Court documents disclose, however, that NPS made use of funds paid by customers in ways that were inconsistent both with its prior and continuing representations and with the applicable state laws and regulations. Instead, NPS operated as a fraudulent Ponzi-like scheme, where customer funds were neither kept safe in bank trusts or insurance policies, but instead were utilized for unauthorized purposes and the personal enrichment of NPS’s officers and others. In turn, new business became the source of funding for funerals that prior customers had previously paid for in advance. Victims of the scheme include individual customers, funeral homes and state insurance guarantee associations across the country.
This case was investigated by Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation and the Postal Inspection Service. Assistant United States Attorneys Steven Muchnick, Charles Birmingham and Richard Finneran prosecuted the case for the U.S. Attorney’s Office.
Sex Offender David James Hart Sentenced in U.S. District CourtRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that DAVID JAMES HART, was sentenced November 5, 2013, in the District Court of Guam to 21months incarceration, and five years of supervised release.
Defendant HART pled guilty on December 19, 2012, to one count of Failure to Register as Sex Offender, in violation of Title 18 U.S.C. Section 2250(a). Defendant HART traveled to Guam from Pennsylvania. Upon his arrival on Guam, defendant HART failed to maintain information with the Guam Sex Offender Registry.
U.S. Attorney Limtiaco states “The purpose of the Guam Sex Offender Registry is to provide important notice to island residents that sex offenders are living, working and attending schools in our community. The Sex Offender Registry is a nationwide network that exists to increase public safety and community awareness. Defendants who have committed sexually violent offenses, criminal sex conduct offenses, or criminal offenses involving minor victims must all register and maintain their registrations with the Guam Sex Offender Registry. Defendants who refuse to register or update their information will face federal punishment. The United States Attorney’s Office is committed to the aggressive prosecution of non-compliant sex offenders.” Guam’s Sex Offender Registry can be found online at www.guamcourts.org.”
U.S. Attorney Limtiaco noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Childhood (PSC) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in the sexual victimization of children and adults, possess or receive child pornography, and sex offenders who fail to register with the jurisdiction’s Sex Offender Registry.
The investigation was conducted by the United States Marshals Service. The case was handled by Assistant U.S. Attorney R. San Nicolas.
Sentences for November 12 – 14, 2013Read the Press Release
Illiana Theresa Mercado, 40, of Gilbert, Arizona, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 14, 2013, for conspiracy to possess with intent to distribute, and to distributing methamphetamine and for distributing or possessing methamphetamine on a premises where a child is present. Mercado was arrested in Casper, Wyoming. She received 61 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
John L. Atkins, 51, of Alexander, North Dakota, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 12, 2013, for passing counterfeit obligations of the United States. Atkins was arrested in Cheyenne, Wyoming. He received 21 months imprisonment, to be followed by 32 months of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Secret Service.
Second Defendant Sentenced in Murder of U.S. Border Patrol Agent Robert RosasRead the Press Release
SAN DIEGO – Marcos Rodriguez-Perez was sentenced today to 56 years in prison for his participation in the July 2009 robbery and murder of United States Border Patrol Agent Robert Rosas, Jr.
Rodriguez-Perez, a 28-year-old Mexican national, pleaded guilty in August, admitting he was one of three gunmen who lured the agent into a trap to steal his night-vision goggles and then fatally shot him during a struggle. He pleaded guilty to conspiracy to commit robbery and kidnaping, robbery of personal property of the United States, and use and carrying of a firearm during the commission of a crime of violence.
United States District Judge M. James Lorenz also ordered that Rodriguez’s sentence run consecutive to a two-year sentence Rodriguez is currently serving for violating his supervised release from a prior alien smuggling conviction. Prosecutors noted in court that because Rodriguez is almost 29 years old, the combined sentences likely mean Rodriguez will spend the rest of his life in prison.
Court filings indicate that in July 2009, Rodriguez and four others plotted to rob a Border Patrol agent of his night vision device. On July 23, 2009, the group, bearing firearms, traveled by car and foot to the international border near Campo, California. Rodriguez and two others sneaked into the United States at night and waited for a Border Patrol agent to arrive in the area, while the remaining two members of the group stood watch in Mexico. After Agent Rosas arrived in the area and exited his vehicle, Rodriguez and other conspirators detained Rosas at gunpoint. Agent Rosas resisted and, during the ensuing struggle, Rodriguez and his co-conspirators shot Agent Rosas multiple times, killing him. Rodriguez and his co-conspirators then stole the agent’s firearm, night vision device, and other equipment and fled back to Mexico.
In April 2011, Mexican officials arrested Rodriguez in Tijuana, Baja California, Mexico, at the request of the United States. Rodriguez was extradited to the United States in October 2011.
Rodriguez is the second defendant to be sentenced for Agent Rosas’s murder. In April 2010, Judge Lorenz sentenced Christian Daniel Castro-Alvarez to 40 years of imprisonment. Two other defendants, Jose Luis Ramirez-Dorantes and Emilio Samyn Gonzales-Arenazas, have pleaded guilty to participating in the murder and are scheduled to be sentenced in December 2013 and January 2014 respectively. The last defendant, Jose Juan Chacon-Morales, remains a fugitive, and there is a reward of up to $100,000 for information leading to his arrest or location.
After Rodriguez’s sentencing, United States Attorney Laura E. Duffy expressed her condolences to Agent Rosas’s family and colleagues at the Border Patrol: “Nothing can change what happened to Robert on that horrible night, and we realize that. I hope, however, that seeing these men brought to justice and sent to prison for decades helps his family and friends, in some way, as they cope with his loss and move forward.”
Duffy also praised the agents of the Federal Bureau of Investigation and Homeland Security Investigations who conducted the investigation. “This has been a lengthy and extraordinarily difficult investigation, but it’s a testament to the diligence and resolve of those agents as well as the people of the United States, that four men were arrested in a foreign jurisdiction and are now sitting in U.S. prisons. If a law enforcement officer is harmed, we’ll use every resource we have to catch the perpetrators, and never let it be doubted: We will find them.”
Chief Patrol Agent Paul A. Beeson of the U.S. Border Patrol’s San Diego Sector said, “On behalf of the Border Patrol agents of San Diego Sector and all Border Patrol agents nationwide - I want to express our deepest gratitude for the tenacity, persistence, and hard work expended by the honorable men and women of law enforcement involved in this compelling case resulting in Rodriguez-Perez’ arrest, conviction, and sentencing. This sentencing is tempered with the sobering reality of the senseless loss of a fine man, husband and father who was Border Patrol Agent Robert Rosas.”
FBI Special Agent in Charge, Daphne Hearn, commented, "Today's sentencing sends a message that the FBI is committed to bringing to justice those responsible for the death of U.S. Border Patrol Agent, Robert Rosas. Agent Rosas served his country with dedication, honor and courage and was killed while protecting our nation's borders. The FBI recognizes that no punishment will lessen Agent Rosas' death, but we hope today's sentencing will help bring some closure to the family."
DEFENDANT Criminal Case No. 10CR1793-L Marcos Rodriguez-Perez SUMMARY OF CHARGESCount 1: Title 18, United States Code, Section 371: Conspiracy to commit robbery and kidnaping
INVESTIGATING AGENCIES
Count 2: Title 18, United States Code, Section 2112: Robbery of U.S. property
Count 5: Title 18, United States Code, Section 924(c)(1): Discharging firearms during and in relation to a crime of violenceFederal Bureau of Investigation
Homeland Security Investigations
United States Border PatrolSales Broker Sentenced in Manhattan Federal Court to Two Years in Prison for Fraudulent Mark-Up SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, today announced that BENJAMIN CHOUCHANE, a former sales broker, was sentenced in Manhattan federal court to two years in prison on charges of conspiracy to commit securities fraud and wire fraud. CHOUCHANE – along with Marek Leszczynski and Henry Condron – defrauded clients out of millions of dollars by misrepresenting the prices at which securities were bought and sold. In doing so, the brokerage firm for which they worked earned illegitimate and illegal trading profits, and CHOUCHANE, Leszczynski, and Condron were awarded lucrative bonuses. CHOUCHANE pled guilty to conspiracy to commit securities fraud and wire fraud in June 2013, and was sentenced today by U.S. District Judge John F. Keenan.
Manhattan U.S. Attorney Preet Bharara said: “Benjamin Chouchane misrepresented the price of trade executions in order to make illegal profits for his firm and to increase his own bonus. With his sentence today, he joins the ranks of disgraced professionals to be punished for abusing the trust of clients.”
According to the Complaint, Indictment, statements made during CHOUCHANE’s guilty plea, and other court documents:
From 2005 through November 2010, CHOUCHANE, Leszczynski, and Condron worked at a broker-dealer that was headquartered in London, England, with offices in major cities in Europe, Asia, and the United States (“Broker-Dealer 1”). Among other services offered, Broker-Dealer 1 bought and sold securities on behalf of institutional clients, such as commercial banks and investment firms located throughout the United States and in various European cities.
Leszczynski and CHOUCHANE worked as sales brokers for Broker-Dealer 1’s Cash Equity Desk in New York, New York. In that capacity, they were responsible for receiving orders to buy or sell securities from Broker-Dealer 1’s clients, relaying those orders to traders who executed the trades, communicating with clients as their orders were being filled, and sending trading confirmations to the clients that showed the prices at which securities were bought or sold – including any commissions that Broker-Dealer 1 charged. Condron worked as an execution trader and a middle office manager. In that capacity, Condron was responsible for executing buy and sell orders at the instructions of sales brokers, such as Leszczynski and CHOUCHANE, and inputting trading data into Broker-Dealer 1’s bookkeeping system.
From 2005 until December 2008, CHOUCHANE, Leszczynski, and Condron misrepresented the execution prices at which securities were bought and sold. For example, when Broker-Dealer 1 received a buy order from a client, the defendants and their co-conspirators caused the purchase price of the security that would be reported back to the client to be “marked up” from its actual purchase price. Conversely, when Broker-Dealer 1 received a sell order from a client, the defendants and their co-conspirators caused the sale price of the security that would be reported back to the client to be “marked down” from its actual sale price. The difference between the actual execution prices and the false prices reported to clients was hidden from Broker-Dealer 1’s clients, enabling Broker-Dealer 1 to earn millions in trading profits to which it was not entitled. As a result of the fraudulent scheme, CHOUCHANE, Leszczynski, and Condron were paid inflated bonuses.
In addition to the prison term, Judge Keenan sentenced CHOUCHANE, 39, of New York, New York, to two years of supervised release. CHOUCHANE was also ordered to forfeit $5 million, to pay a $100 special assessment fee, and to make restitution in an amount to be fixed at a later date.
Leszczynski, 44, of Miami, Florida, who previously pled guilty to one count of conspiracy to commit securities fraud and wire fraud, is scheduled to be sentenced on December 19, 2013, by Judge Keenan. Condron, 34, of New York, New York, who previously pled guilty to one count of securities fraud and two counts of conspiracy to commit securities fraud, is scheduled to be sentenced on January 16, 2014, by U.S. District Judge Naomi Reice Buchwald.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the U.S. Securities and Exchange Commission for its assistance.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which U.S. Attorney Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. 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 is 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.
The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Benjamin Naftalis is in charge of the prosecution.
SF Garage Company Owner Pleads Guilty to Tax FraudRead the Press Release
SAN FRANCISCO – John Clifford Pollard pleaded guilty today to one count of aiding and assisting in the preparation and presentation of a false U.S. Income Tax Return United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez announced.
According to the plea agreement, Pollard, 46, of San Francisco, is the owner and operator of 5 12 Construction, Inc., doing business as SF Garage Company. SF Garage Co. specializes in residential and commercial construction in San Francisco. Pollard admitted that during the 2009 and 2010 tax years he willfully aided and assisted in the preparation and filing of the four quarterly employment tax returns [Forms 941] for the 2009 tax year, reporting wages paid to SF Garage employees. The tax returns were all false because they omitted wages that had been paid to SF Garage employees.
Pollard was charged on November 5, 2013, with one count of assisting in the filing of false tax returns. He pleaded guilty to the one count. Sentencing is scheduled for February 20, 2014, at 1:30 p.m., before The Honorable William H. Orrick, United States District Court Judge, in San Francisco. Pollard’s attorney stated in open court today that Pollard has agreed to pay his civil tax liabilities which exceed $300,000.
The maximum statutory penalty for each count of aiding and assisting in the preparation and presentation of a false U.S. income tax return, in violation of Title 26, U.S.C. § 7206(2), is three years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Cynthia Stier is the Assistant United States Attorney who is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
(Pollard information )
Revere Man Arrested for Conspiring to Produce False IDRead the Press Release
BOSTON - A Revere man was arrested today in connection with a conspiracy to fraudulently issue identification documents.
Leonel Sanchez, 52, was arrested in connection with a scheme to produce false identification documents. From December 2012 through January 2013, it is alleged that Sanchez bribed an employee of the Massachusetts Registry of Motor Vehicles in connection with a scheme to issue Massachusetts driver’s licenses to individuals who presented fraudulently obtained, but valid, Puerto Rican identification documents. This arrest is the most recent development in investigations involving identity theft and public corruption relating to the Massachusetts Registry of Motor Vehicles.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts States Police; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Cheryl Garcia, Acting Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, New York Regional Office, made the announcement today. The case is being prosecuted by Eugenia M. Carris of Ortiz’s Public Corruption Unit.
The details contained in the complaint are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Renoir Painting, Custom Built Sports Car Seized from Convicted Con Man Sold at Auction for $740,000Read the Press Release
PROVIDENCE, R.I. – A Renoir painting and a custom designed sports car seized from imprisoned Rhode Island con man Rocco DeSimone, 60, have been sold at auction for $740,000, announced United States Attorney Peter F. Neronha and U.S. Marshal Jamie A. Hainsworth. DeSimone was convicted by a federal court jury in Providence in March 2011 of bilking an inventor and numerous investors out of more than six million dollars in cash, property and forgiven debt.
In separate auctions administered by the U.S. Marshals Service, a Renoir canvas artwork entitled "Paysage a Cagnes" seized from DeSimone sold for $551,000; a custom built 2006 Ford GT sports car seized from DeSimone sold for $189,000. The proceeds of the auction will be applied toward court ordered restitution by DeSimone to the victims of his scams.
“It is rare that the victims of remorseless, recidivist con-men like the defendant ever receive restitution of any kind,” said United States Attorney Peter F. Neronha. “I am grateful to Marshal Hainsworth and the Marshal Service for their outstanding efforts to this end. Perhaps during his long years ahead in federal prison, the defendant can reflect on the fact that someone else is driving the fancy car and admiring the expensive painting he once enjoyed while looting the bank accounts of others.”
U.S. Marshal Jamie A. Hainsworth added, “The Marshal Service is entrusted with taking custody of and disposing of property seized by federal law enforcement and ordered forfeited by the court. With each item seized we look for creative ways to obtain the most beneficial return of proceeds. It is particularly gratifying in this instance that the proceeds of the auctions will be returned directly to some of the victims of Mr. DeSimone’s scams and crimes.”
At trial, the government presented evidence that DeSimone convinced numerous investors to invest a total of $6,030,145 in cash, property and forgiven debt by making false representations regarding the sale and/or marketing of three inventions developed by two inventors: the Drink Stik - an invention designed to allow individuals wearing protective gear to drink fluids without having to remove the gear; the Song Tube - designed as an improved version of a gastrointestinal medical tube; and the Disk Shield - a protective shield for compact discs and DVDs. The government’s evidence showed that DeSimone used the money to fund a luxurious work-free lifestyle which included worldly travel, high-end cars, valuable collections of art works and artifacts, falconeering, and other recreational events like jamming with the rock band Aerosmith.
DeSimone, who was convicted of seven counts of mail fraud and one count of money laundering, is currently serving a sentence of 192 months in federal prison. At sentencing, DeSimone was ordered to pay restitution to his victims in the amount of $6,030,145.
The case was prosecuted by Assistant U.S. Attorneys Lee H. Vilker and John P. McAdams. The matter was investigated by the FBI and IRS Criminal Investigation.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Philadelphia Man Charged with Sex Trafficking A MinorRead the Press Release
Jerel Jackson, 28, of Philadelphia, PA was charged today by Indictment with three counts of sex trafficking of a minor or of adults by force, announced United States Attorney Zane David Memeger.
If convicted, the defendant faces a mandatory minimum sentence of fifteen years in prison with a maximum sentence of life on each count, a $750,000 fine, a minimum of five years up to a lifetime period of supervised release, and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Philadelphia Police Department Special Victims Unit, the Tinicum Township Police Department, and the Dover (Delaware) Police Department, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pharmacist Arrested in New Jersey, Charged with Assembling Illegal Drug LabRead the Press Release
NEWARK, N.J. - Special agents of the Drug Enforcement Administration (DEA) and FBI arrested a pharmacist early this morning in Jersey City, N.J., on federal charges alleging he assembled equipment for an illegal drug lab, New Jersey U.S. Attorney Paul J. Fishman announced.
Jordan Gonzalez, 33, of New York and formerly of Jersey City, is charged by criminal complaint with one count of attempting to manufacture methylenedioxyamphetamine (MDA) and one count of possessing chemicals and materials to manufacture a controlled substance.
Law enforcement officers are executing search warrants in New Jersey and New York in connection with the ongoing investigation that led to the arrest.
Gonzalez will appear on the charges before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court at a date and time to be determined.
According to the complaint: Gonzalez made a series of purchases through an online auction website of materials associated with the manufacture of MDA, a hallucinogen and Schedule I controlled substance. His acquisitions included various chemicals and flasks, as well as empty gel caps and a machine to fill them.
The investigation also showed that Gonzalez has conducted Internet research related to the synthesis of MDA.
The manufacturing charge carries a maximum potential penalty of 20 years in prison and a $1 million fine. The possession of equipment charge carries a maximum potential penalty of four years in prison and a maximum $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the New Jersey DEA, under the direction of Special Agent in Charge Carl J. Kotowski, and the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the ongoing investigation. He also thanked the New York City and Jersey City Police Departments and the New Jersey State Police for their assistance.The government is represented by Assistant U.S. Attorneys L. Judson Welle and Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
13-435
Defense counsel: Assistant Federal Public Defender David Holman Esq., Newark
Gonzalez, Jordan Complaint
Peddling Crack Cocaine from Apartment Sends Topeka Man to Federal PrisonRead the Press Release
TOPEKA, KAN. – A Topeka man has been sentenced to 87 months in federal prison for maintaining an apartment where he sold crack cocaine, U.S. Attorney Barry Grissom said today.
Charles L. Whetstone, 59, Topeka, Kan., pleaded guilty to one count of maintaining a premises in furtherance of drug trafficking. In his plea, he admitted that in April 2011 the Topeka Police Department made controlled buys of cocaine from Whetstone at an apartment at 611 S.W. Fillmore in Topeka. Whetstone lived elsewhere, but told buyers that when a gold Toyota was parked in front of the apartment he was open for business.
After serving a search warrant at the apartment and seizing drugs, police assumed the role of cocaine salesman at the address. Eleven more persons came to the residence and were arrested after they bought simulated drugs from an undercover officer. The apartment was located within 1,000 feet of Cair Paravel private school at 635 S.W. Tyler in Topeka.
Grissom commended the narcotics divisions of the Topeka Police Department and the Shawnee County Sheriff’s Office and Assistant U.S. Attorney Randy Hendershot for their work on the case.
Owner of Northern Kentucky Chiropractic Clinic Indicted for Health Care Fraud ConspiracyRead the Press Release
COVINGTON, KY - The owner of a chiropractic clinic in northern Kentucky was indicted today on charges that she conspired to defraud a federal health care benefit program.
A federal grand jury in Covington returned the indictment charging 47-year-old Dr. Andrea Almond, of Cincinnati, with one count of conspiracy to commit health care fraud.
The indictment alleges that from September 2008 until April 2010, Almond, a chiropractor and owner of Newport Chiropractic in Campbell County, allegedly submitted health care claims to Medicaid for chiropractic services which she did not perform or witness. Furthermore, the indictment alleges that Almond was aware that the chiropractors who did perform the services were not enrolled as providers with Kentucky Medicaid, and therefore were not eligible for reimbursement.
According to the indictment, over the course of the conspiracy Almond submitted or caused to be submitted approximately 1,943 claims for payment in the approximate amount of $483,797, and received approximately $95,098 in actual reimbursement from Kentucky Medicaid.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Perrye Turner, Special Agent in Charge, Federal Bureau of Investigation, Robin Dangleish, Postal Inspector in Charge, United States Postal Inspection Service, and Jack Conway, Kentucky Attorney General, jointly made the announcement today after a federal grand jury in Covington returned the indictment.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation, the United States Postal Inspection Service, and the investigators with the Medicaid Fraud and Abuse Control Unit with the Kentucky Office of the Attorney General. The indictment was presented to the grand jury by Assistant United States Attorney Laura K. Voorhees.
Almond’s appearance before the United States District Court has not yet been set by the Court in Covington. If convicted, Almond faces a maximum prison sentence of 10 years. However, any sentence following a conviction would be imposed by the Court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.
Operation Coin CollectorRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 37 defendants – including 23 Sedalia, Mo., residents and eight Johnson County, Mo., residents – have been indicted in six separate but related cases for their roles in drug-trafficking conspiracies that distributed more than $1 million worth of cocaine and crack cocaine, as well as illegally possessing firearms.
Operation Coin Collector was a two-year investigation launched by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in partnership with the ATF-led JOLT (Joint Operations Law Enforcement Team) Task Force, comprised of the Sedalia, Warrensburg and Warsaw police departments and the Pettis County, Hickory County, Henry County, Johnson County and Benton County sheriff’s departments. The investigation focused on significant violent crime and drug-trafficking activity in the Sedalia area. As a result of the federal investigation, three indictments were returned under seal by a federal grand jury on Oct. 16, 2013. Three more indictments were returned under seal by a federal grand jury on Nov. 12, 2013.
ATF agents, members of the JOLT Task Force, the U.S. Marshal’s Service, police officers from Knob Knoster, Independence, Columbia, and Kansas City, Mo., the Boone County Sheriff’s Department, the Missouri State Highway Patrol and U.S. Customs and Border Protection Airwing participated in a law enforcement sweep that began early this morning and resulted in 28 arrests and the execution of five search warrants in Sedalia. Five defendants are already in custody for unrelated cases and four defendants are fugitives. All six of the sealed indictments were unsealed and made public today upon the arrests and initial court appearances of a number of defendants. Four defendants are already in custody in separate and unrelated cases.
USA v. Staten, et al
William M. Staten, also known as “Bugs,” 39, Sarandon A. Staten, also known as “Ran,” 19, Robert D. Ballance, also known as “Bass,” 30, Gordon E. Hawkins, also known as “Fresh,” 24, Ronald W. Spencer, 68, and Katherine A. Mazari, 50, all of Sedalia, and Ansley E. Sims, 29, of Columbia, Mo., were charged in a 14-count indictment returned by a federal grand jury in Kansas City on Tuesday, Nov. 12, 2013.
The federal indictment alleges that each of the defendants participated in a conspiracy to distribute five kilograms or more of cocaine and/or 280 grams or more of crack cocaine from Oct. 5, 2011, to Nov. 4, 2013.
In addition to the conspiracy, Ballance and Sarandon Staten are charged together in one count of aiding and abetting each other to distribute crack cocaine. Ballance is also charged with two counts of distributing crack cocaine. William Staten is also charged with one count of possessing cocaine with the intent to distribute.
Ballance, Hawkins, Mazari, Sims, Spencer and Sarandon Staten are each also charged with one count of using a cell phone to facilitate the distribution of cocaine and/or crack cocaine. William Staten is also charged with two counts of using a cell phone to facilitate the distribution of cocaine and/or crack cocaine.
The indictment also contains a forfeiture allegation, which would require each of the defendants to forfeit to the government any property obtained from the proceeds of the alleged offenses or used to commit the alleged offenses, including a money judgment of $1 million, which was allegedly received in exchange for the unlawful distribution of cocaine and/or crack cocaine.
USA v. Wilson, et al
Brian K. Wilson, also known as “Brazy,” 39, Jeffrey A. Kinner, also known as “P-Nut,” 31, D’Shaun L. Johnson, 19, Devan L. Plakorus, 19, and Janice M. Williams, 41, all of Knob Knoster, Mo.; John B. Thomas-Flowers, also known as “J.B.,” 30, and Rashawn D. Cason, 26, both of Blue Springs, Mo.; Jordan L. Wade, also known as “Cali,” 23, Jason L. Jackson, 29, and Connie Sue Kendrick, 46, all of Warrensburg, Mo.; Walter J. Staten, Jr., also known as “Walt Jack,”22, Micah J. Clark, also known as “Dukes,” 32, and Samuel I. Gravitt, 21, all of Sedalia, Mo.; Jeremy D. Peters, also known as “Pun,” 24, of Columbia, Mo.; Kelly L. Buckner, Jr., 22, of Harrisburg, Mo.; and Jacob M. Goans, 20, of Raytown, Mo., were charged in a 27-count indictment returned by a federal grand jury in Kansas City on Tuesday, Nov. 12, 2013.
The federal indictment alleges that 14 of the defendants (with the exception of Gravitt and Goans) participated in a conspiracy to distribute five kilograms or more of cocaine and 280 grams or more of crack cocaine from Oct. 5, 2011, to June 20, 2013.
In addition to the conspiracy, Wilson and Jackson are charged together in one count of aiding and abetting each other to distribute crack cocaine.
Wilson is also charged with being a felon in possession of firearms. The indictment alleges that Wilson, who has a prior felony conviction, was in possession of eight rifles and two shotguns. Wilson is also charged with possessing 10 stolen firearms.
Wade and Gravitt are each charged with one count of possessing stolen firearms. The indictment alleges that Wade and Gravitt were in possession of a stolen Savage 7mm rifle and a stolen Marlin 30-30 caliber rifle. Gravitt and Wade are each also charged with one count of being a felon in possession of firearms.
Goans is charged with one count of possessing stolen firearms. The indictment alleges that Goans was in possession of 11 stolen firearms, including eight shotguns, one rifle, a Mossberg .410-gauge weapon made from a shotgun and a Baikal 12-gauge/.22-caliber combination gun. Goans is also charged with one count of possessing a sawed-off shotgun.
Wilson is also charged with six counts of using a cell phone to facilitate the distribution of cocaine and/or crack cocaine. Wade, Clark, Staten, Johnson, Williams, Peters, Jackson, Plakorus, Kendrick, Kinner and Thomas-Flowers are each also charged with one count of using a cell phone to facilitate the distribution of cocaine and/or crack cocaine.
The indictment also contains a forfeiture allegation, which would require each of the defendants to forfeit to the government any property obtained from the proceeds of the alleged offenses or used to commit the alleged offenses, including a money judgment of $1 million, which was allegedly received in exchange for the unlawful distribution of cocaine and/or crack cocaine.
USA v. Buckner
Eual T. Buckner, also known as “Big Tommy,” 56, of Sedalia, was charged with being a felon in possession of a firearm in an indictment returned by a federal grand jury in Kansas City on Tuesday, Nov. 12, 2013.
The federal indictment alleges that Buckner, who has a prior felony conviction, was in possession of a Remington 16-gauge pump-action shotgun.
USA v. Kendrick, et al
Kenneth C. Kendrick, also known as “Kavi,” 40, his father, Lee A. Kendrick, 65, Eric T. Hawkins, also known as “Easy,” 33, Kardell E. Sims, also known as “FU,” 35, George E. Buckner, also known as “Jorge,” 50, Ronald C. Boggs, also known as “Hobbs,” 47, Marvin D. Spruell, 56, and his wife, Vickey J. Spruell, 56, all of Sedalia, were charged in a 12-count indictment returned by a federal grand jury on Oct. 16, 2013.
The federal indictment alleges that each of the defendants participated in conspiracy to distribute five kilograms or more of cocaine and/or 280 grams or more of crack cocaine from Oct. 5, 2011, to July 2, 2013.
In addition to the conspiracy, Kenneth Kendrick is charged with five counts of distributing crack cocaine and one count of distributing cocaine. Hawkins is also charged with two counts of distributing crack cocaine. Buckner and Boggs are each also charged with one count of aiding and abetting others to distribute crack cocaine. Kenneth Kendrick, Hawkins and Boggs are also charged together in one count of possessing cocaine with the intent to distribute.
The indictment also contains a forfeiture allegation, which would require all of the defendants to forfeit to the government any property obtained from the alleged violations, including a money judgment of $500,000, which was allegedly received in exchange for the unlawful distribution of cocaine and/or crack cocaine.
USA v. Poindexter, et al
Gordell E. Poindexter, also known as “Fat Man,” 23, Art W. Williams, also known as “Ace,” 25, Demetrius N. Gray, also known as “Meechi,” 29, and Antonio T. Gray, also known as “T,” 29, all of Sedalia, were charged in a 19-count indictment returned by a federal grand jury in Kansas City on Oct. 16, 2013.
The federal indictment alleges that each of the defendants participated in a conspiracy to distribute five kilograms or more of cocaine and/or 280 grams or more of crack cocaine from Oct. 5, 2011, to June 20, 2013.
In addition to the conspiracy, Poindexter is charged with seven counts of distributing crack cocaine and two counts of being a felon in possession of a firearm. The indictment alleges that Poindexter, who has a prior felony conviction, was in possession of a Rohm .22-caliber revolver and a Smith & Wesson .44-caliber revolver.
Demetrius Gray is also charged with three counts of distributing crack cocaine and one count of being a felon in possession of a firearm. The indictment alleges that Demetrius Gray, who has a prior felony conviction, was in possession of a Maadi Model Helwan 9mm pistol.
Williams is also charged with two counts of distributing crack cocaine. Antonio Gray is also charged with one count of distributing crack cocaine.
Williams, Demetrius Gray and Antonio Gray are also charged together in one count aiding and abetting each other to distribute crack cocaine. Williams and Antonio Gray are also charged together in one count of aiding and abetting each other to distribute crack cocaine.
The indictment also contains a forfeiture allegation, which would require each of the defendants to forfeit to the government any property obtained from the proceeds of the alleged violations, including a money judgment of $500,000, which was allegedly received in exchange for the unlawful distribution of cocaine and/or crack cocaine.
USA v. Staten
Marquoi D. Staten, also known as “Scratch,” 21, of Sedalia, was charged in a five-count indictment returned by a federal grand jury in Kansas City on Oct. 16, 2013.
The federal indictment alleges that Staten participated in a conspiracy to distribute 28 grams or more of crack cocaine from Oct. 5, 2011, to June 5, 2012. In addition to the conspiracy, Staten is charged with four counts of distributing crack cocaine.
The federal indictment also contains a forfeiture allegation, which would require Staten to forfeit to the government any property obtained from the proceeds of the alleged violations or used to commit the alleged violations, including $2,248 that was seized by Sedalia police officers.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
These cases are being prosecuted by Special Assistant U.S. Attorney Sydney Sanders. They were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the ATF-led JOLT Task Force and the Pettis County, Mo., Prosecutor’s Office.Ohio-Based Basco Manufacturing Co. to Pay <br /> $1.1 Million for Allegedly Falsifying Customs Documents<br /> to Evade Import Duties on Chinese ProductsRead the Press Release
The Department of Justice announced today that Ohio-based Basco Manufacturing Co. (Basco) has agreed to pay $1.1 million to resolve allegations that it violated the False Claims Act by making false customs declarations to avoid paying duties on products imported from a Chinese manufacturer, and that it has filed a complaint against four other companies and two individuals based on similar allegations. The defendants named in the lawsuit are California-based C.R. Laurence Co.; Florida-based Southeastern Aluminum Products Inc.; Texas-based Waterfall Group LLC; New York-based Northeastern Aluminum Corp.; Northeastern’s owner, William Ma; and Robert Wingfield, the U.S. representative of Chinese exporter Tai Shan Golden Gain Aluminum Products Ltd. (Tai Shan).
“Companies that import products made abroad must comply with the law, including paying the import duties that protect domestic manufacturers and producers from unfair competition,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “The Department of Justice is committed to enforcing the law against those who fail to pay the government money it is owed, just as it will enforce the law against those who falsely claim government funds.”
The government’s settlement and complaint involve allegations that Basco and the companies named in the lawsuit made false declarations to the U.S. Department of Homeland Security Customs and Border Protection to avoid paying antidumping and countervailing duties on aluminum extrusions imported from manufacturer Tai Shan in the People’s Republic of China (PRC). Allegedly, these companies misrepresented that the aluminum extrusions, which are used in the manufacture of shower enclosures and other products, were imported from Malaysia.
The Department of Commerce assesses, and Customs and Border Protection collects, antidumping and countervailing duties to protect U.S. businesses and level the playing field for domestic products. Antidumping duties protect against foreign companies “dumping” products on U.S. markets at prices below cost, while countervailing duties offset foreign government subsidies. Imports of PRC-made aluminum extrusions have been subject to antidumping and countervailing duties since 2010. No such duties are due on imports of such items made in Malaysia.
“Circumvention of our country’s import laws causes substantive harm to U.S. businesses and our economy,” said Acting U.S. Attorney for the Middle District of Florida A. Lee Bentley III. “These laws must be strictly enforced so that our companies can remain competitive in markets throughout the world.”
Basco and the defendants named in the government’s lawsuit allegedly engaged in a scheme to avoid duties by shipping the aluminum extrusions manufactured by Tai Shan in the PRC through Malaysia – a practice called transshipping. The U.S. government alleges that Basco and the defendants knew that the aluminum extrusions were merely repackaged in Malaysia and did not undergo a substantial transformation that may have justified changing the product’s country of origin from the PRC to Malaysia.
“Antidumping and countervailing duties enforcement is a priority for Customs and Border Protection due to the significant role that it plays in the economic security of the United States,” said Director of Field Operations for Customs and Border Protection Vernon Foret. “Customs and Border Protection is responsible for facilitating the legitimate flow of trade, while enforcing the laws against the evasion of duties intended to protect against unfair trade practices.”
The allegations against Basco and asserted in the government’s complaint were brought by whistleblower James F. Valenti Jr. in the U.S. District Court for the Middle District of Florida under the qui tam, or whistleblower, provisions of the False Claims Act. The Act permits private parties to sue companies and individuals on behalf of the government who have falsely claimed federal funds or, as in this case, made false statements to avoid paying funds owed to the government. The Act also allows the government to intervene in and take over a lawsuit, as it has done in this case, and entitles the whistleblower to receive a share of any funds recovered through the lawsuit. Valenti’s share of the Basco settlement has not yet been determined.
The investigation was handled by the Department of Justice Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the Middle District of Florida; the Department of Homeland Security U.S. Customs and Border Protection and Immigration and Customs Enforcement; and the Department of Commerce International Trade Administration.
The lawsuit is captioned United States ex rel. Valenti v. Tai Shan Golden Gain Aluminum Products Ltd., et al., Case No. 11-cv-368 (M.D. Fla.). The government’s claims against Basco, and against the defendants named in the government’s complaint, are allegations only; there has been no determination of liability.
Ohio-Based Basco Manufacturing Co. to Pay $1.1 Million for Allegedly Falsifying Customs Documents to Evade Import Duties on Chinese ProductsRead the Press Release
United States Sues Four Other Companies and Two Individuals for Similar Violations
WASHINGTON – The Department of Justice announced today that Ohio-based Basco Manufacturing Co. (Basco) has agreed to pay $1.1 million to resolve allegations that it violated the False Claims Act by making false customs declarations to avoid paying duties on products imported from a Chinese manufacturer, and that it has filed a complaint against four other companies and two individuals based on similar allegations. The defendants named in the lawsuit are California-based C.R. Laurence Co.; Florida-based Southeastern Aluminum Products Inc.; Texas-based Waterfall Group LLC; New York-based Northeastern Aluminum Corp.; Northeastern’s owner, William Ma; and Robert Wingfield, the U.S. representative of Chinese exporter Tai Shan Golden Gain Aluminum Products Ltd. (Tai Shan).
“Companies that import products made abroad must comply with the law, including paying the import duties that protect domestic manufacturers and producers from unfair competition,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “The Department of Justice is committed to enforcing the law against those who fail to pay the government money it is owed, just as it will enforce the law against those who falsely claim government funds.”
The government’s settlement and complaint involve allegations that Basco and the companies named in the lawsuit made false declarations to the U.S. Department of Homeland Security Customs and Border Protection to avoid paying antidumping and countervailing duties on aluminum extrusions imported from manufacturer Tai Shan in the People’s Republic of China (PRC). Allegedly, these companies misrepresented that the aluminum extrusions, which are used in the manufacture of shower enclosures and other products, were imported from Malaysia.The Department of Commerce assesses, and Customs and Border Protection collects, antidumping and countervailing duties to protect U.S. businesses and level the playing field for domestic products. Antidumping duties protect against foreign companies “dumping” products on U.S. markets at prices below cost, while countervailing duties offset foreign government subsidies. Imports of PRC-made aluminum extrusions have been subject to antidumping and countervailing duties since 2010. No such duties are due on imports of such items made in Malaysia.
“Circumvention of our country’s import laws causes substantive harm to U.S. businesses and our economy,” said Acting U.S. Attorney for the Middle District of Florida A. Lee Bentley III. “These laws must be strictly enforced so that our companies can remain competitive in markets throughout the world.”
Basco and the defendants named in the government’s lawsuit allegedly engaged in a scheme to avoid duties by shipping the aluminum extrusions manufactured by Tai Shan in the PRC through Malaysia – a practice called transshipping. The U.S. government alleges that Basco and the defendants knew that the aluminum extrusions were merely repackaged in Malaysia and did not undergo a substantial transformation that may have justified changing the product’s country of origin from the PRC to Malaysia.
“Antidumping and countervailing duties enforcement is a priority for Customs and Border Protection due to the significant role that it plays in the economic security of the United States,” said Director of Field Operations for Customs and Border Protection Vernon Foret. “Customs and Border Protection is responsible for facilitating the legitimate flow of trade, while enforcing the laws against the evasion of duties intended to protect against unfair trade practices.”
The allegations against Basco and asserted in the government’s complaint were brought by whistleblower James F. Valenti Jr. in the U.S. District Court for the Middle District of Florida under the qui tam, or whistleblower, provisions of the False Claims Act. The Act permits private parties to sue companies and individuals on behalf of the government who have falsely claimed federal funds or, as in this case, made false statements to avoid paying funds owed to the government. The Act also allows the government to intervene in and take over a lawsuit, as it has done in this case, and entitles the whistleblower to receive a share of any funds recovered through the lawsuit. Valenti’s share of the Basco settlement has not yet been determined.
The investigation was handled by the Department of Justice Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the Middle District of Florida; the Department of Homeland Security U.S. Customs and Border Protection and Immigration and Customs Enforcement; and the Department of Commerce International Trade Administration.
The lawsuit is captioned United States ex rel. Valenti v. Tai Shan Golden Gain Aluminum Products Ltd., et al., Case No. 11-cv-368 (M.D. Fla.). The government’s claims against Basco, and against the defendants named in the government’s complaint, are allegations only; there has been no determination of liability.
Ohio Pair Indicted for Marijuana ConspiracyRead the Press Release
A federal grand jury returned a one-count indictment charging Tyler J. Lilley, age 33, of Akron, Ohio, and Tyler J. Bell, age 31, of Louisville, Ohio, with conspiracy to distribute and possession with intent to distribute marijuana, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from at least as early as the Summer of 2012 to on or about June 26, 2013, Lilley conspired to distribute and to possess with the intent to distribute 100 kilograms or more of marijuana; and Bell conspired to distribute and to possess with intent to distribute 50 kilograms or more of marijuana.
If convicted, the defendants’ sentences 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 sentence 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. The matter is being prosecuted by Assistant United States Attorney Samuel A. Yannucci.
New York People Plead Guilty in Counterfeit Fraud SchemeRead the Press Release
St. Louis, MO –These five New York residents traveled from New York to St. Louis returning stolen merchandise to various retail stores using counterfeit driver’s licenses and receipts.
According to court documents, on November 29, 2012, Maryland Heights police officers conducted a traffic stop of a vehicle being driven by Ishaan Davis. A subsequent search revealed Toshiba laptop computers, a Star TSP 100 Future Print receipt printer, document making card stock, counterfeit State of Florida and New York drivers licenses in Davis' name and the names of others and assorted clothing bearing sales tags. Further investigation revealed two rooms in which Davis, Shonta V. Simpson and William Randall Estes were registered. In addition to items similar to those found in Davis’ car, in the hotel rooms, the officers found boxes of additional clothing with tags which had been mailed from Leo Lewis in New York to Davis in St. Louis, as well as receipts showing wire transfers of money from Davis to Lewis and Ingrid Millsaps.
Through his plea, Davis admitted that he utilized the equipment to produce counterfeit drivers licenses and merchant receipts so that Simpson and Estes could return stolen merchandise for cash. The total number of counterfeit drivers licenses found in the vehicle and the two hotel rooms was 13. During the scheme, they defrauded Ann Taylor and The Loft stores, as well as stores such as The Gap. Simpson had been recruited by Davis, and Leo Lewis recruited Estes to participate in the fraudulent scheme. Estes received a daily rate for his participation, and Simpson was promised a percentage of the money received when she returned the stolen items.
The merchandise that was fraudulently returned was stolen by individuals such as co-defendant Ingrid Millsaps from stores located in, and near, the Brooklyn, New York area. In general, Millsaps was able to steal merchandise valued at $5,000 within two to three days, which she then provided to Davis and others. On one occasion, in order to comply with a request for merchandise, Millsaps stole clothing and items valued at approximately $60,000 during a two to three week period. Millsaps also stole receipt tape and proprietorial store information from retailers such as Ann Taylor in order to facilitate the fraudulent scheme. Millsaps and Davis engaged in the criminal activity for approximately 11 years. Through their pleas, they agreed that a conservative estimate would place the loss for this area exceeding $400,000.
ISHAAN DAVIS, Springfield Gardens, NY; INGRID MILLSAPS, Brooklyn, NY; and LEO LEWIS, Brooklyn, NY, entered guilty pleas this week before United States District Judge Henry Autrey. Sentencings have been set for February 10, 2014.
Co-defendants, Shonta Simpson and William Estes, both of Brooklyn, NY, pled guilty to related charges and were sentenced earlier this year.
The case was investigated by the City of Maryland Heights Police Department and the United States Postal Inspection Service. Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney’s Office.
New York Man Indicted for Identity Theft and Bank FraudRead the Press Release
A federal indictment was filed today charging Gregory Frazier, aka Gregory Fernandez, age 53, of New York, New York, with bank fraud and aggravated identity theft, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that the defendant executed and attempted to execute a scheme to defraud JP Morgan Chase Bank, and to obtain money owned by and under the custody of the bank by means of false and fraudulent pretenses, representations and promises, on October 23, 2013.
Under this scheme, the defendant obtained counterfeit New York State drivers licenses containing his photograph, and the personal identifier information of three individuals who resided in New York State, according to the indictment.
On October 23, 2013, the defendant entered JP Morgan Chase Bank branches in Streetsboro, Twinsburg, Bedford Heights and Beachwood, Ohio, seeking to withdraw cash from accounts maintained by the three individuals whose personal identifying information had been stolen, according to the indictment.
The case is being prosecuted by Assistant United States Attorneys Robert W. Kern and Miranda Dugi following an investigation by the United States Secret Service, and the Beachwood and Streetsboro Police Departments.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
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.
Moriarty Man Sentenced to Fourteen Years for Robbing Two Albuquerque-Area Banks in July 2012Read the Press Release
ALBUQUERQUE – Georges Marius Hyatt, 47, of Moriarty, N.M., was sentenced earlier today to 14 years in federal prison followed by three years of supervised release for his bank robbery conviction and for violating the terms of his supervised release on prior convictions. Hyatt also was ordered to pay restitution to the banks that were the victims of his criminal conduct.
Hyatt was arrested on July 18, 2012 on a criminal complaint charging him with robbing the New Mexico Federal Credit Union branch at 6501 Indian School Road NE in Albuquerque on July 16, 2012. According to the criminal complaint, Hyatt was identified as the bank robber by an official with the U.S. Probation Officer who saw photographs taken by the Credit Union’s surveillance cameras in the media. The official notified the FBI that a warrant had been issued for Hyatt’s arrest for violating the conditions of his supervised release. Hyatt was arrested after the victim bank teller positively identified him as the bank robber.
On March 23, 2013, Hyatt pled guilty to a four-count felony information charging him with (1) robbing the Credit Union on July 16, 2012; (2) robbing the Bank of the West branch located at 5401 Gibson Blvd. SE in Albuquerque on July 17, 2012; (3) possessing a firearm in furtherance of a crime of violence; and (4) being a felon in possession of a firearm. In entering his guilty plea, Hyatt admitted that he previously had been convicted on bank robbery charges in the U.S. District Court for the District of New Mexico.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and was prosecuted by Assistant U.S. Attorney Jon K. Stanford.Monroe Couple Sentenced for Interstate Theft and Tax OffensesRead the Press Release
A husband and wife from Monroe were sentenced today for their roles in a theft and tax violation scheme, U.S. Attorney Barbara L. McQuade announced today.
Judge Marianne O. Battani sentenced John Arthur McCarter, 46, to 57 months in prison, and his wife, Katherine McCarter, 36, to 3 years of probation.
McQuade was joined in the announcement by Carolyn Weber, IRS-Detroit, Acting Special Agent in Charge, and Paul M. Abbate, Special Agent in Charge of the Detroit Division of the Federal Bureau of Investigation.
John McCarter was sentenced for interstate theft of stolen tires and for tax evasion. Katherine McCarter was sentenced for impeding the administration of the IRS laws and presenting false documents to the IRS.The case arose from John McCarter’s theft of six semi-trailers full of new tires and wheels from the Kace Logistics yard in Romulus, Michigan, in August 2006 and October 2007. Some of the stolen tires and wheels were intended for the Ford F-150 Harley Davidson series. After breaking the locks and hitching the semi-trailers to their own cabs, McCarter and his accomplices transported the semi-trailers to Knox, Pennsylvania, where they sold them to a wholesale tire dealer for approximately $240,000.
In addition to the interstate theft charge, John McCarter was also charged with tax evasion for failing to declare and pay taxes on approximately $759,000 that he obtained during from sales of new tires to the wholesale tire company in Pennsylvania. The IRS calculated that he owed taxes of nearly $225,000 on the unreported income.
Katherine McCarter pleaded guilty to impeding the investigation of IRS Criminal Investigations agents by attempting to mislead them about the source and purpose of monies John McCarter directed her to deposit into her personal bank accounts from the proceeds of the tire sales he had obtained.
“Not only did Mr. McCarter evade payment of taxes on his ill-gotten gains but his wife lied to the IRS about it when confronted with these facts. Compliance with our tax laws is an important aspect of our civil responsibilities” stated Carolyn Weber, Acting Special Agent in Charge. The IRS will continue to pursue those who circumvent the United States tax system.”
The investigation of this case was conducted by special agents of the FBI and IRS Criminal Investigations and prosecuted by Assistant U.S. Attorneys Ross MacKenzie and Ellen Christensen.
Midwest USA Outfitters Operated by A Pennsylvania Man Found Guilty on 13 Counts of Lacey Act ViolationsRead the Press Release
DES MOINES, IA - On November 14, 2013, Rodney Eugene Hughes, a 63 year-old resident of Mayfield, Pennsylvania, doing business as Midwest USA Outfitters, Cantril, Iowa, was found guilty in federal court of seven counts of the unlawful sale and/or acquiring of deer, taken and transported in interstate commerce, announced United States Attorney Nicholas A. Klinefeldt. In addition, Mr. Hughes was found guilty of six counts of willfully submitting false information as to the licensing of said deer that was intended to be transported in interstate commerce. Penalties for said crimes include a fine not more than $250,000, imprisonment for not more than five years, or both.
The evidence produced at trial showed that Hughes owned and operated a hunting guide service in Southern Iowa known as Midwest USA Outfitters. In 2008, several non-resident hunters came to Southern Iowa to hunt with Midwest USA Outfitters. These hunters came knowing they did not possess a buck tag, but were told by Hughes that he would provide them with a resident buck tag. Hughes had relatives and friends obtain hunting tags and used these tags to place on the non-resident hunters’ kill. Hughes would then report or cause to be reported the tag information to the State of Iowa by inputting the tag number belonging to people other than the hunters. This is in violation of the Lacey Act, Title 16 U.S. Code Sections 3372 and 3373; in addition to Iowa State Code Sections 483A.1; 483A.26; 483A.38; and various Iowa Administrative Code Sections.
The investigation was conducted by the U.S. Fish & Wildlife Service and the Iowa Department of Natural Resources. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
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Massachusetts Man Charged with Armed Robbery of East Hartford PharmacyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that DALBERT RODRIGUEZ, 29, recently of Holyoke and Amherst, Mass., has been arrested on a federal criminal complaint charging him with the armed robbery of prescription narcotics from a CVS store in East Hartford last month.
RODRIGUEZ was arrested yesterday in Massachusetts. He appeared before U.S. Magistrate Judge Joan G. Margolis in New Haven yesterday afternoon and was ordered detained.
According to court documents, this matter stems from an investigation into a series of armed robberies occurring at pharmacies in the greater Hartford area and Western Massachusetts. During the robberies, an assailant typically brandished a handgun and proceeded to steal large quantities of prescription narcotics.
As alleged in the criminal complaint, at approximately 9:00 p.m. on October 18, 2013, RODRIGUEZ entered the CVS Pharmacy located at 972 Silver Lane in East Hartford, proceeded to the pharmacy counter, passed through a swinging door and approached the pharmacist who was behind the counter. RODRIGUEZ displayed a handgun to the pharmacist and instructed him to open the safe. RODRIGUEZ then removed numerous pill bottles from the safe, placed them in a plastic bag and exited the store.
The complaint charges RODRIGUEZ with interference with commerce through threat of violence and conspiracy, possession of a firearm in furtherance of a crime of violence, and possession and conspiracy to possess narcotics with intent to distribute.
Acting U.S. Attorney Daly stated that the investigation is ongoing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration and the East Hartford Police Department, with the assistance of the Cromwell Police Department, the Amherst (Mass.) Police Department and other state and local law enforcement agencies. This case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
Acting U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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(203) 821-3722 [email protected]Man Pleads Guilty in Salina Drug Trafficking CaseRead the Press Release
TOPEKA, KAN. – A man has pleaded guilty in a federal drug trafficking case in Salina, U.S. Attorney Barry Grissom said today.
Jon Reed Woodbridge, 23, Salina, Kan., pleaded guilty to one count of using a telephone with texting capabilities in furtherance of drug trafficking. In his plea, Woodbridge admitted that on Feb. 7, 2013, he used telephone texting technology to facilitate trafficking in marijuana.
He is set for sentencing Feb. 3, 2014. He faces a maximum penalty of eight years in federal prison and a fine up to $250,000.
Co-defendants are: Abigail Torres Soto, who is set for sentencing Feb. 14, 2014.
Delaine Rae Romeo, who is set for sentencing Jan. 27, 2014.Grissom commended the 1-70/I-35 Drug Task Force, the Salina Police Department and Assistant U.S. Attorney Richard Hathaway for their work on the case.