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Monday 16 September 2013
Pennsylvania Man Sentenced to 18 Years for Production of Child Pornography, Traveling to Engage in Sexual Acts with MinorsRead the Press Release
BOSTON - A York, Pa. man was sentenced late Friday for production of child pornography and traveling to engage in sex acts with a minor.
Derick Ritter, 42, was sentenced by U.S. District Judge F. Dennis Saylor, IV to 18 years in prison, to be followed by 15 years of supervised release. Ritter pleaded guilty to the charges on April 12, 2013.Pretending to be a teenage boy, Ritter lured a 15-year-old girl into an online relationship. He then enticed her to engage in sexually explicit conduct via web camera. Ritter recorded videos of the victim and saved them to his computer and persuaded her victim to create sexually explicit videos and send them to him. After “dating” the victim online for several months, Ritter traveled to Massachusetts to meet her in person. He took her to a motel and, despite her protests, engaged in sexual acts with her.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Division made the announcement. The case was prosecuted by Assistant U.S. Attorney Karin M. Bell of Ortiz’s Worcester Branch Office.
Parmelee Man Found Guilty of Five Counts of Child Related Sexual Abuse and Sexual Contact ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that Randy Never Misses A Shot, age 49, of Parmelee, South Dakota, was convicted following a three-day jury trial of two counts of Aggravated Sexual Abuse of a Child, two counts of Abusive Sexual Contact of a Child, and one count of Abusive Sexual Contact of a Child While Required to Register as a Sex Offender in Pierre, South Dakota.
These charges carry a maximum penalty of life in prison and a $250,000 fine.
Never Misses A Shot was indicted by a federal grand jury on January 16, 2013. A Superseding Indictment was filed on March 13, 2013. These convictions stem from several separate incidents which occurred between January of 1993 and May of 2007, in which Never Misses A Shot sexually abused three child victims under the age of 12.
During the years of 1993 through 1997, Never Misses A Shot visited child victim A, a young relative, who was staying on the Rosebud Indian Reservation. While visiting her, Never Misses A Shot would sexually abuse her. In addition, Never Misses A Shot engaged in sexual acts with child victim A in a wooded area near the He-Dog housing community. As a result of this conduct, Never Misses A Shot was convicted of Aggravated Sexual Abuse of a child and Abusive Sexual Contact of a Child.
In the summer of the year 2000, Never Misses A Shot was staying with relatives at a housing complex near Parmelee. While there, Never Misses A Shot sexually abused child victim B, another younger relative. As a result of this conduct, Never Misses A Shot was Convicted of Abusive Sexual Contact of a Child.
The final incident occurred over Mother’s Day weekend of 2007. Never Misses a Shot was traveling from Rosebud to Nebraska with a woman and her young daughter, child victim C. They stopped at Pine Ridge for the weekend, and while there, Never Misses A Shot grabbed child victim C behind a trailer, forced her to the ground, and abused her in a sexual manner. As a result of this conduct, Never Misses A Shot was convicted of Abusive Sexual Contact of a Child and Abusive Sexual Contact of a Child While Required to Register as a Sex Offender.
This case was investigated by the Federal Bureau of Investigation, Rapid City Police Department, Sioux Falls Police Department, Rosebud Sioux Tribal Law Enforcement, Brookings Police Department, Jefferson County Sheriff’s Office in Washington State, and the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney Troy R. Morley.
Never Misses A Shot was remanded to the custody of the U.S. Marshals Service pending sentencing.
Omaha Woman Pleads Guilty to Prostitution and Money Laundering ConspiracyRead the Press Release
United States Attorney Deborah R. Gilg announced that Tammy L. Schuck pled guilty today to three counts of a Superseding Indictment: conspiracy to promote a prostitution enterprise and to induce interstate travel to engage in prostitution; inducing or attempting to induce interstate travel to engage in prostitution; and a conspiracy to launder money. She also admitted a forfeiture allegation.
The counts to which Ms. Schuck pled guilty carry the following penalties: a maximum of 5 years imprisonment and $250,000 fine for the conspiracy to promote a prostitution enterprise and to induce interstate travel for prostitution; a maximum of 20 years imprisonment and $250,000 fine for inducing interstate travel to engage in prostitution; and a maximum of 20 years imprisonment and $500,000 fine for conspiracy to launder money.
Starting in approximately April 2008, and continuing to in or about January 2012, Ms. Schuck operated three “spas” in Omaha, Nebraska. Each of the spas was, in fact, a front for prostitution. The majority of customers received sex acts from workers, rather than legitimate spa services, in exchange for money. Ms. Schuck and other workers had “sessions” with customers during which they provided sex acts in exchange for money. Some customers traveled to the spas from Iowa and from other states to obtain sex acts for money. Customers paid a “door fee” depending on the length of the session and negotiated a separate “tip” with the workers for the sex act.
Ms. Schuck and others acting at her direction deposited cash generated by the operation of the spas into Defendant’s business and personal bank accounts. Ms. Schuck also arranged for credit card revenues from operation of the spas to be deposited into both accounts.
Ms. Schuck placed advertisements for the spas on the internet. Ms. Schuck also helped create a website for the spas accessible over the internet, and periodically updated the website. Established customers could access a “Members Only” section of the website to read about the female workers providing services and view provocative pictures of them.
During the time when Ms. Schuck owned and managed the spas, there were an overall total of more than twenty workers providing commercial sex acts. The investigation was conducted by the Federal Bureau of Investigation, the Omaha Police Department and the Internal Revenue Service, under the auspices of the Child Exploitation Task Force, which also includes the Council Bluffs Police Department, the Douglas County Sheriff’s Office, the La Vista Police Department, the Mills County Sheriff’s Office and the Nebraska State Patrol.Ohio Man Convicted of Online Solicitation of A ChildRead the Press Release
CORPUS CHRISTI, Texas – Harley Michael Peterson, 23, has admitted he used a telephone and a computer connected to the Internet to coerce and entice a minor to engage in sexual activity, announced United States Attorney Kenneth Magidson.
Between April 1, and Aug. 4, 2012, Peterson admitted be began communicating with a child he knew to be 15 years of age. He met the child online and their contact primarily occurred on a social networking website and an online computer gaming community website. The communications eventually progressed to telephone calls.
Peterson and the child chatted explicitly about his desire to engage in sexual activities with the child who clearly identified herself as a 15-year-old. As the communications continued, Peterson agreed to travel from his home in Ohio to Corpus Christi to engage in sexual activity with the child.
On Aug. 3, 2012, the child was reported as a runaway by relatives. Through examination of her online activities, relatives were able to determine her whereabouts and those of Peterson, who was subsequently arrested in Corpus Christi.
Senior U.S. District Judge John D. Rainey accepted the guilty plea and has set sentencing on Dec. 16, 2013, at 4:45 p.m. At that time, Peterson faces a mandatory minimum sentence of 10 years and a possibility of life imprisonment as well as a $250,000 fine. He will remain in custody pending that hearing.
Homeland Security Investigations and Corpus Christi Police Department’s Internet Crimes Against Children Task Force ICAC investigated.
Assistant United States Attorney Lance Duke is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Missouri Tax Preparer Pleads Guilty to Federal Tax Fraud ChargesRead the Press Release
KANSAS CITY, KAN. - A Missouri tax preparer has pleaded guilty to preparing false income tax returns resulting in a total tax loss of more than $316,000, U.S. Attorney Barry Grissom said today.
Cynthia M. Raymond, Jackson, Mo., pleaded guilty to five counts of filing false tax returns and one count of aggravated identity theft. In her plea, she admitted submitting approximately 98 false tax returns under the names of 36 clients for the tax years 2007 through 2010. Her clients were not aware that she prepared returns including false deductions for business losses, charitable contributions, unreimbursed business expenses, medical expenses and false tax credits including education and residential energy credits.
She filed the returns electronically and provided her clients with different tax returns than she filed with the IRS. She routinely directed the Internal Revenue Service to deposit part of the refund to her clients’ accounts and to deposit the rest of the refund into her personal account.
Sentencing is set for Dec. 17. She faces a maximum penalty of 3 years in federal prison and a fine up to $100,000 on each count of filing a false tax return, and a maximum penalty of five years and fine up to $250,000 on the identity theft count. Grissom commended IRS-Criminal Investigation and Assistant U.S. Attorney Chris Oakley for their work on the case.Mescalero Apache Man Sentenced to Prison for Sexually Abusing a MinorRead the Press Release
ALBUQUERQUE – Gregory Warren Second, 22, a member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced this afternoon to 24 months in federal prison followed by five years of supervised release for his conviction for sexual abuse of a minor. Second will be required to register as a sex offender when he completes his prison sentence. The sentence was announced by Acting U.S. Steven C. Yarbrough and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Second was arrested in Nov. 2012, on a criminal complaint alleging that in May 2012, he engaged in a sexual act with an Indian child between the ages of 12 and 16 years on the Mescalero Indian Reservation. He has been in custody since his arrest.
On March 26, 2013, Second entered a guilty plea to a felony information charging him with sexual abuse of a minor and admitted that on May 22, 2012, he knowingly engaged in a sexual act with a 12-year-old child.
This case was investigated by the BIA’s Office of Justice Services, Mescalero Agency. It was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, local and tribal resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc/.
Mentmore, N.M., Woman Pleads Guilty to Federal Voluntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Bertha Damon, 44, an enrolled member of the Navajo Nation who resides in Mentmore, N.M., pleaded guilty this morning to a voluntary manslaughter charge this morning. Damon entered her guilty plea without the benefit of a plea agreement.
Damon entered her guilty plea to a felony information charging her with killing a man by striking him with a piece of firewood on the Navajo Indian Reservation on May 21, 2011. According to information presented during today’s plea hearing, Damon and the victim, her husband of 24 years, returned to their home after a night of drinking and began arguing. During the argument, Damon repeatedly struck the victim in the head with a piece of firewood. The victim died as the result of multiple blunt force trauma to the head.
At sentencing, which has yet to be scheduled, Damon faces a maximum penalty of 15 years in prison followed by three years of supervised release.
This case was investigated by the Gallup office of the FBI, the Crownpoint office of the Navajo Nation Division of Public Safety and the New Mexico State Police. Assistant U.S. Attorney Jacob A. Wishard is prosecuting the case.
Man Pleads Guilty to Possessing and Making ExplosivesRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man pleaded guilty today to unlawfully possessing and making explosives at his home in Las Vegas, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Steven Fernandes, 19, pleaded guilty before U.S. District Judge Andrew P. Gordon to one count of possession of an unregistered firearm. Sentencing is scheduled for Dec. 18, 2013, at 9:00 a.m. Fernandes, who is in federal custody on the charges, faces up to 10 years in prison and a fine of up to $250,000.
According to the plea agreement, before and up to Sept. 13, 2012, Fernandes possessed at his home explosive parts and devices which were not registered with the National Firearms Registration and Transfer Record. On about Sept. 10, 2012, Fernandes also transported explosive materials in Nevada, Utah, and Arizona and detonated destructive devices in the Arizona desert.
According to other court records, from January to September 2012, several individuals reported to the FBI that Fernandes believed he was a sniper and commanding officer of a militia which was preparing to go to war with the government or an invading country. Fernandes had bragged that he possessed firearms and a large amount of ammunition and could walk into a restaurant filled with people and kill as many people as he wanted. Fernandes bragged that he was trained in the building of homemade explosives including chlorine bombs, and had made and possessed numerous pipe bombs.
Federal law enforcement agents arrested Fernandes on Sept. 13, 2012, after they observed him drive away from his residence with a shotgun in his vehicle. During a search of Fernandes’ vehicle they found a loaded Mossberg Model 500 12-gauge shotgun containing 10 rounds of ammunition. They also found at least 44 more rounds of shotgun ammunition in the vehicle. The agents also executed a federal search warrant at Fernandes’ home on Sept. 13, 2012, and recovered firearms, explosive devices, and a number of substances and tools that could be used in the building of explosive and noxious gas releasing devices, including napalm, ammonium and sodium sulfate, sulfur, cannon fuses. Additionally, they recovered two inert hand grenades, five rifles, four handguns, and thousands of rounds of ammunition, and instructive materials for making explosive devices.
This case was investigated by the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Clark County Fire Department, and the Las Vegas Metropolitan Police Department, and is being prosecuted by Assistant U.S. Attorney Nicholas D. Dickinson.Man Indicted for Robbery of First National Bank in Loganton, Pennsylvania and Two Banks in Somerset and Cambria CountiesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced the return of a five-count superseding indictment by a federal grand jury in Williamsport charging Corbin Will, age 40, of Garrett, Pennsylvania, with robbing and conspiring to rob the First National Bank in Loganton, Pennsylvania, an M&T Bank branch in Tyrone, Pennsylvania, and the 1ST Summit Bank in Salix, Pennsylvania using a dangerous weapon.
According to United States Attorney Peter J. Smith, the superseding indictment alleges that Will aided and abetted Nicole Lynn Durst in robbing the First National Bank of $3,697 on May 31, 2012. The superseding indictment also alleges that Will and Durst conspired to rob the three Pennsylvania banks between May 3, 2012 and May 31, 2012.
On April 12, 2013, Durst entered a guilty plea to robbery and conspiracy charges before United States District Judge Matthew Brann, and she is in custody pending sentencing. Will is in custody on related bank robbery charges pending in West Virginia and Maryland.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police and prosecution of this matter has been assigned to Assistant United States Attorney George J. Rocktashel.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 90 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Long Time Fugitive Ordered to Federal PrisonRead the Press Release
McALLEN, Texas – Alexis Estevez-Alvarez, 46, of Havana, Cuba, has been sentenced to prison following his convictions of possession with intent to distribute marijuana and failure to appear, United States Attorney Kenneth Magidson announced today. Estevez-Alvarez was convicted July 9, 2013, following less than two days of trial and approximately 30 minutes of deliberation.
Today, U.S. District Judge Randy Crane, who presided over the trial, handed Estevez-Alvarez sentences of 110 and 20 months, respectively, for the drug and failure to appear convictions to be served consecutively for a total sentence of 130 months in federal prison.
Estevez-Alvarez was originally charged in 2003, permitted release on bond and set for trial Oct. 3, 2003, before Judge Crane. Estevez-Alvarez failed to appear for court and was subsequently indicted on that charge as well.
He remained a fugitive for almost 10 years until apprehended on Oct. 29, 2012. On that date, Alvarez-Estevez was discovered in the bed of a Ford F-150 restrained and inebriated at the Progreso Port-of-Entry after someone had crossed him into the United States and then fled back to Mexico.
The original case began on June 20, 2003, when two former deputies with the Hidalgo County Sheriff’s Office approached a residence in Mercedes seeking consent to search the residence. According to evidence and testimony at trial, deputies then found 42 bundles of marijuana totaling 671 kilograms in a shed next to a pre-fabricated house on the property. Estevez-Alvarez stated he lived on the property with his wife along with another friend for approximately four months.
The government proved at trial that while a fugitive for 10 years, Estevez-Alvarez has been able to work and live in both Weslaco and Nuevo Progreso, Tamaulipas, Mexico, as well as maintain a relationship with his now ex-wife.
The defense contended that unknown individuals had “control” of Estevez-Alvarez that prevented him from showing up to court in 2003 and that it was fear of retribution from these individuals that kept him from court over the past decade.
The jury disagreed and found him guilty on both counts as charged.
Estevez-Alvarez 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 the Hidalgo County Sheriff’s Office and Homeland Security Investigations. Assistant United States Attorney Juan F. Alanis is prosecuting the case.
Lockport Husband and Wife Sentenced for Conspiracy to Manufacture MethamphetamineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. U.S. Attorney William J. Hochul, Jr. announced today that Thomas W. McCabe, 37, and Leah McCabe, 35, of Lockport NY, who were convicted of conspiracy to manufacture methamphetamine, were sentenced to 20 months and 12 months respectively by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that between December 2013 and May 22, 2014, Thomas McCabe conspired with others, including Leah McCabe, to manufacture methamphetamine, a Schedule I controlled substance. On December 6, 2013, law enforcement officers responded to 4890 Saunders Settlement Road in Lockport after receiving a report that there was a clandestine methamphetamine lab in the basement of the residence. Leah McCabe gave consent to search the premises, and in the basement, officers observed a clear, plastic bag containing a clear liquid clamped to the outside of a dresser drawer, a can of drain cleaner, a can of Coleman fuel, and a gas generator, which are used in manufacturing methamphetamine. Officers seized a plate containing a credit card, a razor blade and a white, powdery substance. A field-test of the white powder was positive for methamphetamine. State charges were filed at that time against Thomas McCabe and subsequently against Leah McCabe.
On May 22, 2014, law enforcement officers went to the McCabe residence at 51 Ritchie Avenue Tonawanda, NY, to execute arrest warrants for the couple who failed to appear in court with on the state charges. On that date, officers observed a plastic bag containing what appeared to be methamphetamine oil. During a security sweep of the residence, they observed a plate and credit card which contained a white powdery substance. Thomas McCabe and Leah McCabe were removed from the residence due to safety concerns, and were taken into custody.
During another search, officers discovered materials and equipment used to manufacture methamphetamine, including Coleman fuel, empty pseudoephedrine blister packs, table salt, a plastic funnel, ammonium nitrate, several empty cold packs, sodium hydroxide, a hydrochloric acid gas generator, and a one-pot methamphetamine bottle. A field test of the residue on the plate and credit card was positive for methamphetamine. The substances seized were submitted to the Niagara County Sheriff’s Department Laboratory for analysis, which determined that there was more than two ounces of a mixture and substance containing methamphetamine seized from the McCabe residence.
The sentencings are the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, the Niagara County Drug Task Force and the Niagara County Sheriff’s Department, both under the direction of Sheriff James Votour.
Loan Processor Who Helped Obtain $100 Million in Fraudulent Mortgages Sentenced to 12 Months in PrisonRead the Press Release
SAN DIEGO – United States Attorney Laura E. Duffy and Federal Housing Finance Agency Inspector General Steve A. Linick announced that John Allen, a mortgage loan processor based in Laguna Hills, was sentenced today to one year in custody by U.S. District Court Judge John A. Houston for his participation in an investment and mortgage loan fraud scheme that generated nearly $15 million in kickbacks.
Allen worked with Mary Armstrong, a self-described but unlicensed mortgage broker, and several other co-conspirators to steal money from real estate purchase transactions. Armstrong recruited “investors” through advertisements in the Los Angeles Times, Monster.com, and elsewhere, and offered them the opportunity to purchase homes using their good credit with no money down. In reality, these so-called investors were nothing more than straw buyers who were promised $10,000 for each property purchased as part of the scheme. Allen helped to secure mortgages for the properties by falsifying loan applications. Among other things, the loan applications falsely claimed exorbitant income from fake employers and used fabricated documents, which Allen helped to create, in order to support the claims. The defendants used these loan applications to obtain mortgages with 100% financing – and thus avoided having to make any down payment on the properties.
The defendants earned millions of dollars in profits by convincing the sellers of the properties to inflate the purchase price by $100,000 or more, which was allegedly to be used for construction to improve the properties. In fact, no construction work was ever performed and the funds were instead diverted (or “kicked back”) to bank accounts controlled by the defendants. Allen helped to identify properties to purchase as part of the scheme, and inflated the prices by $100,000 or more to fund the kickbacks. All together, the defendants pocketed nearly $15 million in kickbacks in this way, and allowed nearly all of the properties to swiftly fall into foreclosure. Through this scheme, the defendants arranged the purchase of approximately $100 million in mortgages, resulting in estimated total losses between $7 million and $20 million to the mortgage lenders and secondary purchasers Fannie Mae and Freddie Mac.
Allen was charged with participating in the scheme along with five others: Armstrong, Teresa Rose, a Ramona real estate agent; William Fountain, Armstrong’s assistant; Justin Mensen, a straw buyer who went on to recruit others and help to launder the funds; and Audrey Yeboah, a Los Angeles-based tax preparer who generated fake paperwork to support the loans. All of the defendants have pled guilty to participating in the scheme. Allen was the first defendant to be sentenced. Fountain is scheduled for sentencing on September 20, 2013, and Armstrong is scheduled for sentencing on September 30, 2013, both before Judge Houston.
United States Attorney Duffy explained that the American public is the very real victim of this type of widespread mortgage fraud that played such a significant role in destabilizing the country’s financial situation. She emphasized that her office would aggressively prosecute such crimes and urged anyone in the community who has information relating to these charges to contact the San Diego branch of the Federal Bureau of Investigation at (858) 565-1255 or the Federal Housing Finance Agency - Office of Inspector General hotline at (800) 793-7724.
This matter was investigated jointly by agents from the FBI and FHFA-OIG. The case is being prosecuted by FHFA-OIG Investigative Counsel and Special Assistant U.S. Attorney Emily W. Allen and Assistant U.S. Attorney Valerie Chu of the Southern District of California.
DEFENDANTS Criminal Case No. 12CR1848-JAH Mary Armstrong
Teresa Rose
William Fountain
John Allen DEFENDANT Criminal Case No. 12CR1458-JAH Justin Mensen DEFENDANT Criminal Case No. 12CR4322-JAH Audrey Yeboah SUMMARY OF CHARGESMary Armstrong, Teresa Rose, and William Fountain
Count 1: Title 18, United States Code, Section 371 -- Conspiracy to Commit Wire Fraud and to Launder Money -- statutory maximum sentence of 5 years custody, a maximum fine of $250,000 or twice the gain derived from or loss caused by the offense, and $100 special assessment.
Mary Armstrong
Count 2: Title 18, United States Code, Section 1343 -- Wire Fraud -- statutory maximum sentence of 20 years custody, a maximum fine of $250,000 or twice the gain derived from or loss caused by the offense, and $100 special assessment.
Counts 3-5: Title 18, United States Code, Section 1956(a)(1)(B)(I) -- Money Laundering -- statutory maximum sentence of 15 years’ custody, a maximum fine of $500,000 or twice the value of the property involved in the transaction, and $100 special assessment.
Justin Mensen
Information: Title 18, United States Code, Section 371 -- Conspiracy to Commit Wire Fraud and to Launder Money -- statutory maximum sentence of 5 years custody, a maximum fine of $250,000 or twice the gain derived from or loss caused by the offense, and $100 special assessment.
Audrey Yeboah
Information: Title 18, United States Code, Section 1343 -- Wire Fraud -- statutory maximum sentence of 20 years custody, a maximum fine of $250,000 or twice the gain derived from or loss caused by the offense, and $100 special assessment.
AGENCIESFederal Bureau of Investigation
Federal Housing Finance Agency - Office of Inspector GeneralLeader of Methamphetamine Smuggling Group Handed 25-Year SentenceRead the Press Release
CORPUS CHRISTI, Texas – Jose Garza Jr., 33, of Palestine, has been ordered to serve a significant federal prison sentence for his involvement in a methamphetamine conspiracy, announced United States Attorney Kenneth Magidson. Garza entered a plea of guilty June 17, 2013, to conspiracy to possess with intent to distribute as well as possession with intent to distribute more than 500 grams of methamphetamine.
Today, Senior United States District Judge John Rainey sentenced him to a total of 300 months in prison to be followed by a five-year-term of supervised release.
In November 2012, Border Patrol agents at the Sarita checkpoint stopped a vehicle driven by Zantana Brauher, 21, of Frankston, at which time a routine K-9 exam resulted in an alert prompting agents to refer the vehicle to secondary for further inspection. A short time later, another vehicle entered the primary inspection area of the checkpoint. Brian Gallandt, 26, of Palestine, was driving and had as passengers Crystal Rodgers, 29, and LaKendra Jackson, 24, both also of Palestine, and Christian Durden, 18, of Houston. A K-9 alerted to the vehicle and they were also referred to secondary inspection.
Agents were able to determine all knew each other and the two vehicles were traveling together. During a detailed inspection, agents discovered two bundles of methamphetamine concealed on Durden’s body, three on the body of Rodgers and three concealed on Jackson’s body. One bundle of methamphetamine as well as a loaded handgun were found concealed on Gallandt. The nine bundles of methamphetamine had a total weight of approximately 4.04 kilograms and a purity of 100%.
A third vehicle traveling with the group was subsequently discovered at a gas station in Riviera. Inside the vehicle were Jose Garza and Claudia Garza, 35, of San Benito. Investigation determined that Garza was the leader of the smuggling group. He had recruited and hired the co-conspirators to travel from Palestine to the Rio Grande Valley to transport the narcotics back for further distribution. Claudia Garza was discovered as the person that had strapped the bundles of methamphetamine to the others.
All co-conspirators also pleaded guilty. Gallandt and Rodgers were each sentenced to 126 months in prison, while Durden, Jackson and Brauher are each serving a 96-month sentence.
Claudia Garza is set for sentence on Oct. 15, 2013.
In federal custody since his arrest, Jose Garza will remain in custody and serve his sentence at a U.S. Bureau of Prisons facility to be designated in the near future.
The conviction and sentence stems from an investigation by Drug Enforcement Administration and Border Patrol. This case was prosecuted by Assistant U.S. Attorney Lance Watt.
Kaylene Shane Red Wolf Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney(s Office announced that during a federal court session in Great Falls, on September 12, 2013, before U.S. District Judge Sam E. Haddon, KAYLENE SHANE RED WOLF, a 44-year-old resident of Hardin, pled guilty to theft from local government receiving federal funding. Sentencing has been set for January 1, 2014. She is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
The Lodge Grass Public Schools - on the Crow Indian Reservation - operates with approximately $4.5 million in annual federal funding.
RED WOLF was a Payroll Clerk for the Lodge Grass Public Schools (LGPS) from October 2011 to her resignation on September 11, 2012.
In June 2012, RED WOLF executed a double salary scheme whereby she would issue herself a partial pay check even though she also arranged payment to herself through direct deposit for the same hours worked. She doubled her pay for those hours on five separate occasions between June 20, 2012, and August 15, 2012.
Between November 4, 2011, and June 12, 2012, RED WOLF also employed a scheme whereby she wrote other checks for her own benefit. These fraudulent payments involved pay for hours not documented as having been worked and overpayments for holiday pay.
When interviewed about the allegedly illegal payments, RED WOLF admitted that she was not entitled to receive the full 80 hours on her normal payday when she had already advanced herself a portion of those hours between paydays. RED WOLF admitted she was the person that input the payroll hours into the LGPS computer system so the paychecks could be issued to employees, including herself. RED WOLF said she intended to repay the unauthorized funds she received while employed as the Payroll Clerk for the LGPS, but that she had not made any repayments due to other financial difficulties she was experiencing.
When the questioning turned to the other allegedly improper payments, RED WOLF terminated the interview.
The loss to the Lodge Grass Public Schools was $10,002.60, although RED WOLF terminated the interview before some of the questioned payments were discussed. The United States and RED WOLF will endeavor to reach an understanding about the total amount of loss well before sentencing.
RED WOLF faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the U.S. Department of Interior - Office of Inspector General.
Johnstown Man Violated Federal Drug and Gun LawsRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
Che Rose, 27, pleaded guilty to two counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Sept. 10, 2009, Rose possessed less than five grams of cocaine base, commonly known as "crack," with the intent to distribute it.
Further, on the same date Rose, who had been convicted in 2005 in Cambria County, Pa., of Drug Act Violation/delivery-possession with the intent to deliver a controlled substance unlawfully possessed an H & R revolver. Federal law prohibits persons who have been convicted of a crime punishable by imprisonment for more than one year from possessing ammunition or firearms. Drug Act Violation/delivery-possession with intent to deliver a controlled substance is such a crime.
Judge Gibson scheduled sentencing for Feb. 6, 2014, at 11 a.m. The law provides for a total sentence of 30 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Johnstown Police Department, the Cambria County Drug Task Force and the Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Rose.
According to Mr. Hickton, Rose is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Inmate Indicted for Assaulting Corrections OfficersRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that a federal grand jury in Williamsport returned an indictment on September 11 charging an inmate from the United States Penitentiary at Lewisburg, Pennsylvania.
According to United States Attorney Peter J. Smith, Maurice Weaver, age 37, is charged with assaulting the Warden and Associate Warden at the Allenwood Penitentiary on January 13, 2012. After the assaults, inmate Weaver was transferred later that day to the Lewisburg Penitentiary where he assaulted a corrections officer from that institution. None of the injuries were life threatening or required outside medical treatment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney William Simmers.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 60 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Huntington Woman Gets Prison Time for Heroin Distribution SchemeRead the Press Release
HUNTINGTON, W.Va. – A 30-year-old woman was sentenced to 21 months in prison today for her role in a heroin distribution scheme, announced U.S. Attorney Booth Goodwin. Ashlei Steinbrecher, of Huntington, previously pleaded guilty to aiding and abetting the distribution of heroin.
On January 23, 2013, Steinbrecher arranged a heroin transaction between co-defendant Alvaro J. Jaime Jr. and what determined to be a Drug Enforcement Agent (DEA) agent working undercover. Steinbrecher and Jaime met the undercover DEA agent at a predetermined location in Chesapeake, Ohio. Jaime, who at the time indicated that he did not have enough heroin to complete the transaction, directed Steinbrecher and the undercover agent to a second location in Huntington, where they met with another heroin dealer. After arriving in Huntington, Jaime met the heroin dealer in the parking lot of a Huntington-area restaurant. Jaime obtained approximately four grams of heroin from his source of supply. Afterward, Jaime distributed the heroin to an undercover DEA agent in exchange for $600. Steinbrecher received $200 in pre-recorded U.S. currency as payment for her role in the transaction. The transaction was recorded by law enforcement authorities using audio and video surveillance.
Steinbrecher also arranged illegal heroin transactions on January 29, 2013 and in February 2013 and received cash payments for her participation.
Alvaro F. Jaime, Jr., 29, of Chesapeake, Ohio, was sentenced last week to 46 months in federal prison for selling heroin.
The DEA and Huntington Police Department conducted the investigation. Assistant United States Attorney Gregory McVey handled prosecution.
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Huntington Crack Cocaine Dealer Sentenced to 14 Years in Federal PrisonRead the Press Release
Michael Lashawn Johnson admits distributing nearly 2 kilos of crack cocaine
HUNTINGTON, W.Va. – Michael Lashawn Johnson, also known as “Spank,” of Huntington, was sentenced today to 14 years in prison for selling crack cocaine, announced U.S. Attorney Booth Goodwin. The sentence was handed down by Chief United States District Judge Robert C. Chambers in federal court in Huntington. Johnson, 34, previously pleaded guilty to conspiracy to distribute 280 grams or more of crack cocaine.
Johnson sold crack cocaine during a conspiracy that began as early as 2006. During the scheme, Johnson obtained crack cocaine and powder cocaine from Columbus and brought it back to Huntington to sell. Johnson was a frequent source of supply of crack cocaine to other drug dealers in and around Huntington.
On December 6, 2010, Johnson’s vehicle was stopped along State Route 104 by members of the Ohio State Highway Patrol. During the traffic stop, an Ohio Highway Patrol police dog performed a search on the defendant’s vehicle. The vehicle search revealed $33,000 in cash. On April 13, 2011, members of the Huntington Violent Crime and Drug Task Force used a confidential informant to conduct a controlled purchase of crack cocaine from Johnson. The defendant later sold 10.9 grams of crack cocaine to the police informant in exchange for $700. On February 7, 2013, an arrest warrant was issued for Johnson. Police arrested Johnson at his Huntington residence. At the time of his arrest, police also found items consistent with the production of crack cocaine inside Johnson’s residence, along with a .40 caliber semi-automatic pistol.
In total, Johnson is responsible for distributing approximately two kilograms of crack cocaine.
This case was investigated by the Huntington Violent Crime and Drug Task Force. Assistant United States Attorney Gregory McVey handled the prosecution.
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High-level Colombian Drug Trafficker Sentenced to 194 Months in PrisonRead the Press Release
Jose Maria Corredor-Ibague, aka “Boyaco,” a high-level drug trafficker and supporter of the Fuerzas Armadas Revolucionarias de Colombia (FARC), has been sentenced in Washington, D.C., to serve 194 months in prison. Corredor-Ibague was the first person in the nation to be indicted under the federal narco-terrorism statute, which became law in March 2006.
The sentencing was announced today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Acting Assistant Attorney General John P. Carlin of the Justice Department’s National Security Division; U.S. Attorney Ronald C. Machen Jr. of the District of Columbia; Michele M. Leonhart, Administrator of the U.S. Drug Enforcement Administration; FBI Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Miami Special Agent in Charge Alysa D. Erichs; and Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service Southeast Field Office.
“Jose Maria Corredor-Ibague was an international drug lord who moved cocaine around the world through a close, criminal partnership with the FARC,” said Acting Assistant Attorney General Raman. “This narco-terrorism case was the first of its kind. As this 194-month sentence demonstrates, the Justice Department is firmly committed to working with its counterparts to hold accountable anyone who uses narco-trafficking to support, assist and enable terrorism.”
“This defendant led a drug transportation network that distributed thousands of kilograms of cocaine to destinations in the United States and other countries, often acting in concert with the FARC terrorist organization,” said U.S. Attorney Machen. “He was a leader of a broader conspiracy that engaged in narco-terrorism, and his apprehension, prosecution and 194-month prison sentence show that law enforcement is committed to combatting drug traffickers and those who provide support to terrorist groups.”
Corredor-Ibague’s sentence was unsealed today in U.S. District Court in the District of Columbia. On Monday, Sept. 9, 2013, Corredor-Ibague, 46, a Colombian National, was sentenced by U.S. District Judge Gladys Kessler. In addition to his prison term, Corredor-Ibague was sentenced to serve three years of supervised release.
Corredor-Ibague was arrested in Colombia on Oct. 15, 2006. He was extradited to the United States in October 2008 and subsequently pleaded guilty to one count of conspiracy to distribute cocaine while knowing and intending that the cocaine would be imported into the United States, one count of narco-terrorism and one count of conspiracy to provide material support or resources to a foreign terrorist organization.
According to court documents, Corredor-Ibague was the leader of an extensive drug manufacturing and transportation network that processed and manufactured cocaine in Colombian laboratories and used airplanes to fly multi-hundred kilogram loads of cocaine from clandestine airstrips in Colombia to various countries, including Brazil, Guyana, Mexico, Paraguay, Suriname and Venezuela. From these countries, which were often used as transshipment points, the cocaine was sent to destinations in the United States and Europe. Corredor-Ibague controlled the clandestine airstrips used by his organization and also owned and operated the laboratories used to manufacture and package the cocaine. Corredor-Ibague and his associates also transported cocaine owned by other drug trafficking organizations, including cocaine belonging to the FARC.
Corredor-Ibague’s drug trafficking activities were conducted with the protection of the FARC. In particular, the FARC’s “First Front” combat group profited from the activities of Corredor-Ibague and his associates. Corredor-Ibague paid taxes to the FARC using U.S. currency and weapons. Additionally, Corredor-Ibague provided material support, assistance and resources to the FARC, including assault-type weapons, machine guns, ammunition, uniforms and sophisticated communications equipment. Corredor-Ibague conducted these activities with knowledge that the FARC engaged in terrorist activity and terrorism in Colombia and elsewhere.
“This narco-terrorist illegally exported sophisticated US military weapons and communications equipment to support criminal activities by a designated terrorist organization,” said DCIS Special Agent in Charge Khin. “Joint investigations such as these highlight the success of multi-agency partnerships in protecting America’s national security interests in this region.”
This case was investigated by the DEA, the ICE-HSI Miami Field Office, the Defense Criminal Investigative Service (DCIS) Southeast Field Office and the FBI Miami Field Office. Additionally, the U.S. government expresses its grateful appreciation to the government of Colombia for their assistance and support during the investigation, arrest and extradition.
The case was jointly prosecuted by Trial Attorneys Robert Raymond and Jamie Perry of the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS); Trial Attorney Glenn Alexander, formerly of NDDS and now with the Criminal Division’s Computer Crime and Intellectual Property Section; Assistant U.S. Attorney Anthony Asuncion of the District of Columbia; and Trial Attorney David Cora of the National Security Division’s Counterterrorism Section. The Criminal Division’s Office of International Affairs also provided significant assistance in the provisional arrest and extradition of Corredor-Ibague.
High-Level Colombian Drug Trafficker Sentenced to 194 Months in PrisonRead the Press Release
WASHINGTON – Jose Maria Corredor-Ibague, aka “Boyaco,” a high-level drug trafficker and supporter of the Fuerzas Armadas Revolucionarias de Colombia (FARC), has been sentenced in Washington, D.C., to serve 194 months in prison. Corredor-Ibague was the first person in the nation to be indicted under the federal narco-terrorism statute, which became law in March 2006.
The sentencing was announced today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Acting Assistant Attorney General John P. Carlin of the Justice Department’s National Security Division; U.S. Attorney Ronald C. Machen Jr. of the District of Columbia; Michele M. Leonhart, Administrator of the U.S. Drug Enforcement Administration; FBI Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Miami Special Agent in Charge Alysa D. Erichs; and Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service Southeast Field Office.
“Jose Maria Corredor-Ibague was an international drug lord who moved cocaine around the world through a close, criminal partnership with the FARC,” said Acting Assistant Attorney General Raman. “This narco-terrorism case was the first of its kind. As this 194-month sentence demonstrates, the Justice Department is firmly committed to working with its counterparts to hold accountable anyone who uses narco-trafficking to support, assist and enable terrorism.”
“This defendant led a drug transportation network that distributed thousands of kilograms of cocaine to destinations in the United States and other countries, often acting in concert with the FARC terrorist organization,” said U.S. Attorney Machen. “He was a leader of a broader conspiracy that engaged in narco-terrorism, and his apprehension, prosecution and 194-month prison sentence show that law enforcement is committed to combatting drug traffickers and those who provide support to terrorist groups.”
Corredor-Ibague’s sentence was unsealed today in U.S. District Court in the District of Columbia. On Monday, Sept. 9, 2013, Corredor-Ibague, 46, a Colombian National, was sentenced by U.S. District Judge Gladys Kessler. In addition to his prison term, Corredor-Ibague was sentenced to serve three years of supervised release.
Corredor-Ibague was arrested in Colombia on Oct. 15, 2006. He was extradited to the United States in October 2008 and subsequently pleaded guilty to one count of conspiracy to distribute cocaine while knowing and intending that the cocaine would be imported into the United States, one count of narco-terrorism and one count of conspiracy to provide material support or resources to a foreign terrorist organization.
According to court documents, Corredor-Ibague was the leader of an extensive drug manufacturing and transportation network that processed and manufactured cocaine in Colombian laboratories and used airplanes to fly multi-hundred kilogram loads of cocaine from clandestine airstrips in Colombia to various countries, including Brazil, Guyana, Mexico, Paraguay, Suriname and Venezuela. From these countries, which were often used as transshipment points, the cocaine was sent to destinations in the United States and Europe. Corredor-Ibague controlled the clandestine airstrips used by his organization and also owned and operated the laboratories used to manufacture and package the cocaine. Corredor-Ibague and his associates also transported cocaine owned by other drug trafficking organizations, including cocaine belonging to the FARC.
Corredor-Ibague’s drug trafficking activities were conducted with the protection of the FARC. In particular, the FARC’s “First Front” combat group profited from the activities of Corredor-Ibague and his associates. Corredor-Ibague paid taxes to the FARC using U.S. currency and weapons. Additionally, Corredor-Ibague provided material support, assistance and resources to the FARC, including assault-type weapons, machine guns, ammunition, uniforms and sophisticated communications equipment. Corredor-Ibague conducted these activities with knowledge that the FARC engaged in terrorist activity and terrorism in Colombia and elsewhere.
“This narco-terrorist illegally exported sophisticated US military weapons and communications equipment to support criminal activities by a designated terrorist organization,” said DCIS Special Agent in Charge Khin. “Joint investigations such as these highlight the success of multi-agency partnerships in protecting America’s national security interests in this region.”
This case was investigated by the DEA, the ICE Miami Field Office, the Defense Criminal Investigative Service (DCIS) Southeast Field Office and the FBI Miami Field Office. Additionally, the U.S. government expresses its grateful appreciation to the government of Colombia for their assistance and support during the investigation, arrest and extradition.
The case was jointly prosecuted by Trial Attorneys Robert Raymond and Jamie Perry of the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS); Trial Attorney Glenn Alexander, formerly of NDDS and now with the Criminal Division’s Computer Crime and Intellectual Property Section; Assistant U.S. Attorney Anthony Asuncion of the District of Columbia; and Trial Attorney David Cora of the National Security Division’s Counterterrorism Section. The Criminal Division’s Office of International Affairs also provided significant assistance in the provisional arrest and extradition of Corredor-Ibague.
13-318Heroin Dealers Connected with Two Tuscaloosa Overdose Deaths Among 50 Defendants in Federal RoundupRead the Press Release
BIRMINGHAM -- Two Birmingham men charged in connection with the heroin overdose deaths of two young men in Tuscaloosa early this year are among defendants still being sought in an arrest roundup today that is part of an ongoing law enforcement effort to attack the supply side of the growing heroin problem in the Northern District of Alabama, announced U.S. Attorney Joyce White Vance and federal Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.
Special agents with DEA, FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives, along with U.S. Marshals, Gulf Coast High Intensity Drug Trafficking Area Task Force, and state and local police, fanned out across North Alabama this morning to arrest 50 people indicted over the past six months in an operation to take heroin dealers off the streets. As of this afternoon, 40 defendants are in custody on drug distribution charges. Arrests continue. This operation is part of a larger initiative, launched in Spring 2012, to track the sources of heroin in Jefferson, Shelby and Tuscaloosa counties and prosecute those responsible for trafficking the addictive drug that is killing people in increasing numbers.
Confirmed heroin overdose deaths in the three counties increased five-fold between 2008 and 2012, rising from 15 to 83. The majority of the 83 people who died in 2012 were in their 20s and 30s, but teenagers also are dying in increasing numbers.
"Seeking to enhance their illicit profits, drug dealers in our community have shifted their business to selling heroin, which is highly addictive," Vance said. "This shift has led to skyrocketing overdose death rates among young people. Our action today brings together federal, state and local law enforcement who have worked over the past year to interdict the supply of heroin and get the dealers who supply it to our youth off the streets and into federal prison," she said. "We have begun, and look forward to continuing to engage community leaders in efforts to raise awareness about the risks of heroin and combat the demand for it. This is a community-wide issue that parents, educators and medical professionals need to be aware of, along with law enforcement."
"Over the past several months, law enforcement in Northern Alabama has tirelessly investigated heroin trafficking," Morris said. "Our combined investigative and prosecutorial efforts should send a clear message to drug traffickers. That message is that law enforcement shares the common goal to protect our communities and children from those who sell poison. We will be relentless in our pursuit of those criminals who attempt to destroy the futures of our children," he said.
The two men in Tuscaloosa whose overdose deaths are now connected to heroin sold in Birmingham were 20 and 28 years old. Both men, the younger a University of Alabama student, died in the same Tuscaloosa apartment complex within the span of one month.
The two men being sought in connection with those deaths face charges that include distributing heroin "and death resulted from the use of said heroin."
Law enforcement agencies working with DEA in the months-long investigation leading to today's arrests include the Hoover, Pelham, Gardendale, Vestavia Hills, Tuscaloosa, Hueytown, Bessemer and Pleasant Grove police departments, Marshall County Drug Task Force, Gulf Coast HIDTA Task Force, Alabama Beverage Control Board, Alabama Bureau of Investigation, Jefferson and Shelby County sheriff's offices, and district attorney's offices for Jefferson, Shelby and Tuscaloosa counties and the Bessemer Cutoff.In drug-trafficking prosecutions in the Northern District in the past two years, separate from today's arrests, authorities have seized nearly five kilograms of heroin.
The government seized 2.5 kilograms of heroin and 40 kilograms of cocaine in one 2012 drug-trafficking case. A federal grand jury indicted 11 people in that case, including key defendants TONY SCALES, 54, of Birmingham, and WILBERT HANKINS, 43, of Hoover. All 11 have pled guilty to drug distribution charges. A federal judge has ordered the defendants, jointly, to forfeit $16 million to the government as proceeds of illegal activity.
Hankins and Scales both served time for prior convictions on federal drug charges and restarted their illicit business when they were released from prison about 2008. According to evidence in the case, Hankins had maintained contact with supply sources in California and secured large loads of drugs that were transported to Birmingham. Scales, operating mainly from a house in Ensley, used a network of distributors to sell the drugs.
Demand for heroin from Scales' customers steadily drove Hankins to include heroin with his shipments of cocaine. DEA agents seized the 2.5 kilograms of heroin and 40 kilograms of cocaine in April 2012 as it moved from California to Alabama.
A drug-trafficking conspiracy case investigated by the FBI and the Jefferson County Sheriff's Office led to the indictment and arrests of nine people in May and the seizure of two kilograms of nearly pure heroin and 1.5 kilograms of cocaine. That case focuses on a large-scale drug-distribution network in western Birmingham. Trial is pending for all nine defendants.
The public is reminded that indictments contain only charges. Defendants are presumed innocent and it is the government's responsibility to prove guilt beyond a reasonable doubt at trial.
Greenwich Man Indicted on Child Pornography ChargesRead the Press Release
Alleged Possession of Three Thumb Drives Containing Child Pornography
ALBANY, NEW YORK — A grand jury returned an indictment charging TIMOTHY TEFFT, age 64, of Greenwich, New York, with three counts of possessing child pornography announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in- Charge, Federal Bureau of Investigation, Albany Division.1 TEFFT faces up to ten years of imprisonment and a maximum fine of $250,000 on each count.
TEFFT had his initial appearance and arraignment on the charges in Albany today before the Honorable Christian F. Hummel, United States Magistrate Judge. TEFFT was detained pending his trial which has been scheduled for November 18, 2013 at 9:30 a.m. before Chief United States District Court Judge Gary L. Sharpe.
According to the indictment, between January 1, 2010 and May 3, 2011, TEFFT possessed three thumb drives, each of which contained images of child pornography.
This case is being investigated by the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Rick Belliss.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources.”
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1The charge is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Georgia Man Charged with Traveling from New York to New Jersey to Have Sexual Contact with A Minor, Distributing Child PornographyRead the Press Release
TRENTON, N.J. – A Georgia man living in Long Island, N.Y., was charged today with traveling from New York to New Jersey for the purpose of having sexual contact with a minor and with distributing child pornography, U.S. Attorney Paul J. Fishman announced.
Richard J. Simone Jr., 23, of Acworth, Ga., is charged by complaint with one count of traveling across state lines for the purpose of engaging in illicit sexual conduct with a minor and one count of distribution of child pornography. Simone made his initial court appearance today before U.S. Magistrate Judge Lois H. Goodman and was detained pending a bail hearing on Friday, Sept. 20, 2013.
According to the criminal Complaint filed today in Trenton federal court:
Beginning in July 2013, an undercover special agent of Homeland Security Investigations, Department of Homeland Security, began communicating via the internet with Simone. Over the course of July, August, and September, Simone and the undercover agent engaged in numerous, graphic communications over the internet regarding Simone having sex with the undercover agent’s fictitious 9-year-old daughter and fictitious minor babysitter. During an online conversation in August 2013, Simone sent nine images of child pornography to the undercover agent. On Sept. 13, 2013, Simone traveled from Long Island, where he was living, to Monmouth County, N.J., for the purpose of having sex with the undercover agent’s fictitious daughter and babysitter. Simone was arrested upon his arrival at the location in Monmouth County where he and the undercover agent had arranged to meet prior to the sexual conduct.
The charge of traveling with the purpose of engaging in illicit sexual conduct with a minor carries a maximum potential penalty of 30 years in prison and a $250,000 fine. The charge of distribution of child pornography carries a mandatory minimum of five years, a maximum penalty of 20 years, and a $250,000 fine.
U.S. Attorney Fishman credited agents of Homeland Security Investigations, under the direction of Special Agent in Charge Andrew McLees in Newark, and the West Long Branch Borough Police Department, under the direction of Chief of Police Lawrence L. Mihlon, for the investigation leading to today’s complaint. He also thanked HSI New York; U.S. Customs and Border Protection, and the Monmouth County Prosecutor’s Office, for their assistance with the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government is represented by Harvey Bartle, attorney in charge of the U.S. Attorney’s Trenton Office.The charges and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-371
Defense counsel: Andrea Bergman, Assistant Federal Public Defender, Trenton
Simone Complaint
Former Vickburg Mayor Pleads Guilty to BriberyRead the Press Release
Natchez, Miss – Paul Winfield, 40, former mayor of the city of Vicksburg, Mississippi, pled guilty in U.S. District Court today to bribery in connection with a pre-event disaster contract for the city of Vicksburg, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
Winfield will be sentenced by U.S. District Senior Judge David C. Bramlette III on November 19, 2013 at 9:30 a.m. and faces a maximum penalty of ten years in prison and a $250,000 fine.
In early 2012, while serving as the mayor of Vicksburg, Winfield met with a Federal Bureau of Investigation (“FBI”) source, where they discussed pre-event disaster contracts for the city of Vicksburg. On July 18, 2012, Winfield again met with the FBI source at a restaurant in Jackson. After dinner, Winfield and the FBI source met inside the source’s vehicle and the FBI source asked Winfield what would need to be done in order for the source’s company to get the pre-event disaster contract. Winfield responded “Ten” and held up ten fingers, signifying $10,000. The FBI source asked Winfield if the FBI source could pay $5,000 now and $5,000 once the contract was awarded. Winfield agreed and the FBI source paid Winfield $5,000 cash in the vehicle at that time.
On August 17, 2012, the FBI source met with Winfield in Natchez, Mississippi, where he paid Winfield an additional $2,000 in cash and asked if another $3,000 would be enough. The source then promised Winfield another $3,000 after the pre-event disaster contract was awarded.
As part of his plea agreement, Winfield agreed to forfeit the bribe money he accepted and he also agreed to neither run for elected public office nor apply for or be employed by any governmental entity in the future.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Mike Hurst.
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Former Pinellas County Housing Authority Employee Pleads GuiltyRead the Press Release
Tampa, FL - Acting United States Attorney A. Lee Bentley, III announces that Keomala Phandara Khammanivong (32, St. Petersburg) today pleaded guilty to charges of stealing and embezzling funds from the Pinellas County Housing Authority. She faces a maximum penalty of ten years in federal prison.
According to the facts presented at the plea hearing, Khammanivong was employed as a “Cashier/Clerk Typist” by the Pinellas County Housing Authority (PCHA) at the French Villas in St. Petersburg, from July 7, 2008 to August 8, 2012. In that job position, Khammanivong was responsible for a variety of tasks, which included receiving, counting, and balancing payments of rent made by the tenants, issuing receipts to tenants; and making daily bank deposits. During this time, Khammanivong received money orders from various PCHA tenants and either altered or wrote out the money orders in her name. She then deposited these altered or fraudulent money orders in her personal bank account, instead of depositing the funds in the PCHA accounts. Over this time period, Khammanivong stole a total of $23,126, from the Pinellas County Housing Authority and spent these funds for her personal use.
This case was investigated by U.S. Department of Housing and Urban Development, Office of Inspector General. It is being prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Former Employee Sentenced to Probation, Community Service for Stealing $1,800 from DEARead the Press Release
PITTSBURGH - A former United States Drug Enforcement Administration (DEA) employee was sentenced today in federal court to one year probation with 50 hours of community service on her conviction of theft of government property, United States Attorney David J. Hickton announced today.
Senior United States District Judge Donetta W. Ambrose imposed sentence upon Holly A. Cook, 44, of Monongahela, PA.
According to information presented to the court, in June 2012, Cook embezzled to her own use $1,800 in cash of the DEA, monies to which she knew she was not entitled.
Prior to imposing sentence, Judge Ambrose took into consideration the defendant's lack of a criminal history, her early acceptance of responsibility and her full repayment of the $1,800 embezzled by her.
Assistant United States Attorney Mary McKeen Houghton prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Special Agents of the United States Department of Justice, Office of the Inspector General, who conducted the investigation that led to the successful prosecution of Cook.
Former Bank of the Commonwealth Executive Sentenced to 17 Years in Prison for Massive FraudRead the Press Release
NORFOLK, Va. – Stephen G. Fields, 49, of Chesapeake, Virginia, was sentenced today to 17 years in prison, followed by 5 years of supervised release, for conspiracy to commit bank fraud, false entries in bank records, misapplication of bank funds, and false statement to a financial institution. The Court further ordered Fields to pay $331,860,955.43 in restitution to the Federal Deposit Insurance Corporation, and to forfeit $61,625,789.79 in proceeds from the offense.
Kathleen M. Kahoe, Acting United States Attorney for the Eastern District of Virginia; Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office; Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office (IRS-CI); Christy L. Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Jon T. Rymer, Inspector General of the Federal Deposit Insurance Corporation (FDIC-OIG); and Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau (FRB-CFPB OIG) made the announcement after sentencing by United States District Judge Raymond A. Jackson.
“Defendant Fields’ criminal acts were not only felonious violations of the law, but also contributed to the collapse of the Bank of the Commonwealth during the economic crisis,” said Acting United States Attorney Kathleen M. Kahoe. “We are committed to investigating and ferretting out these white collar crimes, which have devastating and far reaching consequences. These frauds will not be tolerated and I wish to commend the steadfast determination of our prosecutors and law enforcement partners who dedicated countless hours in seeing that justice was achieved in this case.”
“Today, those responsible for the corruption leading to one of the biggest bank failures in Virginia history impacting our Hampton Roads community were held accountable,” said FBI Special Agent In Charge Royce E. Curtin. “The extensive two year investigation led by FBI Norfolk Division, in conjunction with IRS, SIGTARP, FDIC-OIG, and IG-FRB, identified and unraveled a criminal enterprise conducting complex fraudulent financial transactions. This case reflects the FBI and its partners' commitment to protect our communities by aggressively investigating and bringing to justice individuals exploiting their influence or position for personal gain.”
“The culture among senior executives at TARP applicant Bank of the Commonwealth was rotten at its core, and Fields was a principal contributor to the stench of corruption and entitlement at the bank,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “As a former bank examiner, Fields should have stopped and blown the whistle, but instead, he engaged in an extend and pretend scheme to mask past-due loans, rigged auctions to get foreclosed property off of the bank’s books, and lied to bank examiners. Let today’s sentencing serve as a warning to anyone engaged in fraud involving TARP – SIGTARP and its law enforcement partners will bring justice and hold you accountable for your crimes.”
“The FDIC OIG is pleased to join the U.S. Attorney’s Office and our law enforcement colleagues in announcing the sentencing of Mr. Fields,” said FDIC Inspector General Jon T. Rymer. “It is particularly troubling to the FDIC OIG when bank insiders who are entrusted with operating their banks in a safe and sound manner violate that trust and engage in activities that contribute to losses to the Deposit Insurance Fund. As evidenced in today’s sentencing, those who undermine the integrity of the financial system will be brought to justice.”
“Today’s sentencing shows that bank executives who engage in illegal activities that undermine the public trust will be brought to justice,” said Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. “We will continue to work with our law enforcement partners to vigorously pursue wrongdoers whose fraudulent actions materially impact the Federal Reserve Board’s supervision program.”
Fieldswas found guilty after a lengthy, ten week, jury trial on May 24, 2013. Evidence presented at trial demonstrated that Fields, a former Executive Vice President and Senior Commercial Loan Officer for the Former Bank of the Commonwealth (“Bank”), engaged in an illegal reciprocal relationship with certain troubled borrowers to mask the Bank’s deteriorating financial condition. Conspirators Thomas E. Arney, Eric H. Menden, and George P. Hranowskyj all testified at trial that, at the request of Fields, they performed favors such as buying Bank of the Currituck stock, bailing out the Bank President’s son on bad investments, and purchasing bank-owned property with fully-funded Bank of the Commonwealth loans. In return, Arney, Menden and Hranowskyj all received preferential treatment such as affording large overdrafts, sometimes for hundreds of thousands of dollars, below-market interest rates, loans to make interest payments on other loans, and easy access to credit. Fields continued to lend millions of dollars to Arney, Menden and Hranowskyj despite knowledge of their serious financial problems, and even after Hranowskyj had accused Menden of embezzling money from one of the Bank’s largest construction loans.As a further part of the scheme, Fields assisted in the removal of hundreds of past-due loans from past due loan reports prepared for the Bank’s Board of Directors. For example, Fields took draws from a construction loan for the 345 Granby Street property to make payments on wholly unrelated loans. Fields was well aware that such loans should appear on the Bank’s past due loan report, but took steps to conceal their past due status to mask the Bank’s diminishing financial condition. On more than one occasion, the Federal Reserve Bank of Richmond criticized Fields for failing to comply with the Bank’s internal controls, and for jeopardizing the safety and soundness of the financial institution. This is so even though Fields used to work at the Federal Reserve Bank of Richmond as a safety and soundness examiner.
Finally, Fields also facilitated self-dealing and preferential treatment at the Bank’s expense for co-defendants Edward Woodard, Troy Brandon Woodard, and his own loan assistant. For example, Fields arranged for Arney to purchase Edward Woodard’s personal condominium at an inflated price using 100% financing from the Bank. Fields himself substantially benefited throughout this conspiracy by receiving substantial benefits from the Bank in the form of a large salary, a company car and other employment benefits. Moreover, one of the Bank’s largest borrowers, Mr. Menden and Mr. Hranowskyj, paid over $6,000 to install granite countertops and other amenities in Mr. Fields’s kitchen.
In addition to having a substantial impact on property values in the Hampton Roads area, Fields’s crimes were a significant factor in the failure of the Bank of the Commonwealth on September 23, 2011. As a result of this failure, the Federal Deposit Insurance Corporation has sustained at least $333 million in losses.
The Investigation was conducted by the FBI’s Norfolk Office, Field Office, IRS-CI, SIGTARP, FDIC-OIG, and FRB-CFPB OIG. Assistant United States Attorneys Katherine Lee Martin, Uzo Asonye, and Melissa E. O’Boyle 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.Former Alabama Real Estate Investor Pleads Guilty to Making False Statement in Connection with Real EstateForeclosure Auction InvestigationRead the Press Release
A former investor in the Alabama real estate foreclosure auctions industry pleaded guilty today to one count of making false statements, the Department of Justice announced.
Ali Forouzan, of Mobile, Ala., pleaded guilty in the U.S. District Court for the Southern District of Alabama in Mobile to making materially false and fictitious statements to a Special Agent of the FBI and a Department of Justice Antitrust Division prosecutor. The false statements were in regard to his knowledge of, and participation in, bid rigging and other fraudulent schemes in the Alabama real estate foreclosure auction industry.
According to the charge, in February 2012, Forouzan was interviewed, with counsel present, about the fraudulent schemes under investigation. Forouzan was aware of the nature of the investigation and knew that it was material for the FBI and the Antitrust Division to obtain his full knowledge of such unlawful acts as bid-rigging agreements and other fraudulent schemes relating to real estate foreclosure auctions; unlawful payoffs that he and others made and received in furtherance of such schemes; and secret, second auctions in which Forouzan and others participated. However, Forouzan willfully and knowingly provided false and fictitious information during his interview.
“The Antitrust Division views attempts to compromise the integrity of its investigations as a serious offense,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “Today’s filing should send a clear signal that the Antitrust Division is committed to prosecuting vigorously attempts to cover-up illegal, anticompetitive conduct.”“The success of this investigation exemplifies the FBI’s continued commitment to fight fraud in the real estate industry and serves to deter those who wish to illegally profit from fraud schemes,” said Stephen E. Richardson, FBI Special Agent in Charge of the Mobile Field Office. Special Agent in Charge Richardson praised the perseverance of agents and prosecutors in this complex investigation.
Including Forouzan, to date, nine individuals and two companies have pleaded guilty as a result of the department’s ongoing investigation into the Alabama real estate foreclosure auction industry.
Forouzan faces a maximum penalty of five years in prison, three years of supervised release and a $250,000 fine.
The charge against the defendant arose from an ongoing investigation into bid rigging and other fraudulent schemes in the Alabama real estate foreclosure auctions industry. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should call 404-331-7116 or visit www.justice.gov/atr/contact/newcase.htm
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.Federal Prosecutions Focusing on Gun, Drug and Violent Crime in Brunswick, GA Area Six Guilty PleasRead the Press Release
BRUNSWICK, GA Cortez Arbery, 25, of Brunswick, pled guilty earlier this month before Chief United States District Court Judge Lisa Godbey Wood to being a felon in possession of a firearm. If Arbery is determined to be an “armed career criminal,” he faces a minimum of 15 years in federal prison. During the guilty plea hearing, the evidence showed that Arbery possessed a stolen .38 caliber pistol after having been previously convicted of three felony drug offenses.
Arbery’s guilty plea was the latest in a series of federal prosecutions focusing on gun, drug and violent crime in the Brunswick, Georgia area. Five others previously pled guilty in federal court for their role in weapons and drug offenses: Gromyko Green, 33, pled guilty to possessing a sawed-off shotgun and cocaine; John Wesley Boone, 27, pled guilty to being a felon in possession of a firearm; Calvin Grovener, 24, pled guilty to being a felon in possession of a firearm; Patrick Tenney, 23, pled guilty to receiving a firearms while under indictment; and, Reginald Beckham, 19, pled guilty to trafficking crack cocaine. The sentencings of each of the six defendants will take place after the United States Probation Office conducts pre-sentence investigations.
United States Attorney Edward J. Tarver said, “The number one priority of the United States Attorney’s Office is the protection of the citizens of the Southern District. Those who commit violent offenses in the Brunswick area by trafficking in guns, drugs and the fear of others can expect to have their operations relocated to a federal prison cell.”
All six cases were investigated by the Glynn/Brunswick Violent Crime Task Force, which consists of agents and officers from the ATF, the FBI, the Glynn County Police Department, the Brunswick Police Department, the Glynn County Sheriff’s Office, and the Georgia State Probation Office. The Task Force was formed in December 2012 to combat growing gun violence in Glynn County. Thus far, over 53 guns have been seized. Investigations are ongoing and further federal prosecutions are expected.
Assistant U.S. Attorneys Charlie Bourne and Shane Mayes prosecuted the cases on behalf of the United States. For additional information, please contact First Assistant United States Attorney James Durham at (912) 201-2547.
Edinburg Man Sentenced to Prison for CarjackingRead the Press Release
McALLEN, Texas – Erasmo Garza, 29, of Edinburg, has been sentenced to prison for carjacking, announced United States Attorney Kenneth Magidson.
Chief U.S. District Judge Ricardo Hinojosa sentenced Garza earlier today for his role in the carjacking that occurred in August 2012. Judge Hinojosa sentenced Garza to 51 months in federal prison to be followed by a two-year-term of supervised release. The Judge further ordered Garza to pay restitution in the amount of $2947.49.
Garza pleaded guilty on March 5, 2013, to carjacking - admitting he forced a woman, who was in the parking lot of a local restaurant, out of her Mercedes Benz. Garza, who had been involved in a high speed chase with local police officers, crashed his vehicle while attempting to elude authorities. He then ran across Texas Highway 83 and into the parking lot of the Macaroni Grill. Moments later, he forcibly removed the victim from her Mercedes and fled from police. Garza was arrested several days afterwards without incident.
Garza has been in federal custody without bond since January 2013, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future..
This investigation leading to the charges against Garza was conducted by FBI and FBI Safe Street Task Force with assistance from the McAllen Police Department. Assistant United States Attorney Leo J. Leo III prosecuted the case.
Dunkirk Man Pleads Guilty to Distribution and Possession of Child PornographyRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney Williams J. Hochul, Jr. announced today that Talbert Milton Mount, 52, of Dunkirk, N.Y., pleaded guilty to distribution of child pornography and possession of child pornography before U.S. District Court Judge Richard J. Arcara in Buffalo. The charges carry a maximum penalty of 120 years in prison.
Assistant U.S. Attorney Fauzia K. Mattingly, who is handling the case, stated that on June 14, 2012, a search warrant was executed at the defendant's residence. Agents found approximately 975 videos and over 12,770 images of child pornography on various computers and hard drives belonging to Mount. Some of the images depicted infants and toddlers. The defendant obtained and traded videos and images of child pornography over the internet. Mount was previously convicted of Corruption of a Minor of a Sexual Nature in Pennsylvania in 2010.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, Special Agent in Charge.
Sentencing is scheduled for February 5, 2014 at 1:00 p.m. before Judge Arcara.District Attorney Lisa Shepperd Zavogiannis Sworn in as Special Assistant United States AttorneyRead the Press Release
CHATTANOOGA, Tenn. -- Lisa Shepperd Zavogiannis, District Attorney General, 31st Judicial District, was sworn in as a Special U. S. Attorney (SAUSA) for the U.S. Attorney’s Office, Eastern District of Tennessee. The ceremony was held on Monday, Sept. 16, 2013, in U.S. District Court in Chattanooga by the Honorable William B. Mitchell Carter, U.S. Magistrate Judge.
She will continue to serve as District Attorney General for the 31st Judicial District. Her role as a SAUSA for the Eastern District of Tennessee, will allow her to assist the U.S. Attorney and Assistant U.S. Attorneys in specific federal cases.
In 2006, Ms. Zavogiannis became the first woman in the state of Tennessee to be elected District Attorney in her judicial district. She maintains a strong focus on the children in her district as an active promoter of anti-drug and teen parenting programs. She serves as the President of the Children’s Advocacy Center for the Thirty-First Judicial District, and has done so since 2006. She is active with the District Attorney Generals Conference serving on several committees, including the Executive, Legislative, Public Education and Child Support Committees.
The Honorable William C. Killian, United States Attorney for the Eastern District of Tennessee stated, “We are pleased to have Ms. Zavogiannis join our staff as a Special Assistant United States Attorney. This association allows us to continue and increase our cooperative efforts with the District Attorney General in the 31st Judicial District regarding violent crimes, drugs and human trafficking, and other areas of joint concern.”
Corpus Christi Man Sentenced for Robbing Texas Champion BankRead the Press Release
CORPUS CHRISTI, Texas – Vernon Nicholas Tolmie, 52, of Corpus Christi, has been ordered to prison for robbing Texas Champion Bank through use of force and intimidation, United States Attorney Kenneth Magidson announced today. Tolmie pleaded guilty to one count of bank robbery on Tuesday, Feb. 5, 2013.
Today, Senior U.S. District Judge John D. Rainey, who accepted the guilty plea, handed Tolmie a sentence of 156 months in federal prison to be followed by three years of supervised release. He was further ordered to pay restitution to Texas Champion Bank. Judge Rainey also imposed another 16 months in prison for a violation of supervised release on a case from another district.
As part of his plea, Tolmie admitted he robbed the Texas Champion Bank located on Ayers Street in Corpus Christi on July 11, 2012, and again on Nov. 19, 2012. In both robberies, Tolmie presented threatening notes to bank tellers demanding money.
Tolmie was arrested on Nov. 19, 2012, after Corpus Christi Police officers responded to the bank to investigate the robbery. Officers searched the area and found discarded clothes in an abandoned building matching the clothes worn during the robbery.
The investigation revealed that a man had recently fled the building and entered a nearby restaurant. Officers located Tolmie in that restaurant and he was subsequently detained. Tolmie had the cash from the robbery concealed in his boots and admitted it came from the bank robbery. Tolmie was later identified by an eyewitness and fingerprint evidence as having also committed the July 11, 2012, robbery. Tolmie later admitted he committed both bank robberies.
Tolmie has been in custody without a bond since his arrest. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the FBI and prosecuted by Assistant United States Attorney Sam Brown IV.
Colorado Security Contractor Resolves Overcharging <br /> Allegations Related to Its Work in Iraq and AfghanistanRead the Press Release
The Macalan Group Inc., formerly known as NEK Advanced Securities Inc. (NEK), a security contractor headquartered in Colorado Springs, Colo., has agreed to resolve allegations that it submitted false claims in connection with a contract with the Joint Improvised Explosive Device Defeat Organization (JIEDDO), the Justice Department announced today. NEK’s contract with JIEDDO required it to develop and deploy teams of specialized personnel to Iraq and Afghanistan to combat improvised explosive devices.
“We are committed to pursuing contractors who fail to accurately bill the government,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “The Justice Department will continue to ensure that those who do business with the government do so honestly and fairly and uphold the integrity of our public contracting process.”
“No government contract is more important than one that supports the security efforts of our nation overseas,” said John Walsh, U. S. Attorney for the District of Colorado. “When a contractor fails to bill by the contract rules set up to protect American taxpayers, our office will diligently and aggressively seek to recover any losses, as this case demonstrates.”
The government alleged that NEK submitted false invoices for payment in connection with this contract that claimed excessive or unallowable costs. The most significant of these costs related to lease fees for equipment used under the contract. The government also alleged that NEK was prohibited from charging lease fees that exceeded the price NEK paid to purchase the equipment. To resolve these allegations, NEK will pay the government $2.08 million and also will relinquish an outstanding invoice for $744,969 and turn over numerous weapons and accessories acquired under the contract.This settlement was the result of a coordinated effort by the Department of Justice’s Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the District of Colorado and the Defense Contract Management Agency. The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Colorado Security Contractor Resolves Overcharging <br /> Allegations Related to Its Work in Iraq and AfghanistanRead the Press Release
The Macalan Group Inc., formerly known as NEK Advanced Securities Inc. (NEK), a security contractor headquartered in Colorado Springs, Colo., has agreed to resolve allegations that it submitted false claims in connection with a contract with the Joint Improvised Explosive Device Defeat Organization (JIEDDO), the Justice Department announced today. NEK’s contract with JIEDDO required it to develop and deploy teams of specialized personnel to Iraq and Afghanistan to combat improvised explosive devices.
“We are committed to pursuing contractors who fail to accurately bill the government,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “The Justice Department will continue to ensure that those who do business with the government do so honestly and fairly and uphold the integrity of our public contracting process.”
“No government contract is more important than one that supports the security efforts of our nation overseas,” said John Walsh, U. S. Attorney for the District of Colorado. “When a contractor fails to bill by the contract rules set up to protect American taxpayers, our office will diligently and aggressively seek to recover any losses, as this case demonstrates.”
The government alleged that NEK submitted false invoices for payment in connection with this contract that claimed excessive or unallowable costs. The most significant of these costs related to lease fees for equipment used under the contract. The government also alleged that NEK was prohibited from charging lease fees that exceeded the price NEK paid to purchase the equipment. To resolve these allegations, NEK will pay the government $2.08 million and also will relinquish an outstanding invoice for $744,969 and turn over numerous weapons and accessories acquired under the contract.
This settlement was the result of a coordinated effort by the Department of Justice’s Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the District of Colorado and the Defense Contract Management Agency. The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Clarksville Gang Leader Sentenced to 16 1/2 Years in Federal PrisonRead the Press Release
Brian Vance a/k/a Birdman, 30, of Clarksville, Tennessee, was sentenced yesterday to 16 ½ years in prison, followed by five years of supervised release, for drug conspiracy, accessory after the fact to a drug-related robbery/murder and conspiracy to commit a separate drug-related robbery, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
In sentencing Vance, Judge Kevin Sharp noted that Vance served in a leadership role in the gang and drug activity, showed a “complete lack of respect for the law,” and that people who stood ready to take Vance’s position needed to be deterred. Judge Sharp imposed the 200 month sentence against Vance in consideration of these factors, balanced against Vance’s lack of any criminal history and other mitigating factors.
“This is a significant sentence and it should have a significant impact on criminal gang activity in the Clarksville community,” said Acting U.S. Attorney David Rivera. “We hope that it serves to deter others who are tempted to take over Vance’s position or otherwise engage in criminal gang activity.”
Vance pleaded guilty to the charges on June 10, 2013. According to the statement of facts presented at the hearing, Vance was involved in a drug trafficking conspiracy responsible for distributing cocaine and crack cocaine in the Clarksville area, particularly in the publicly funded Summit Heights housing development.
A lengthy wiretap investigation, authorized by the district court, enabled investigators to expose the conspiracy and uncover murders which occurred in Clarksville and Stewart County, Tenn. The investigation also determined that Vance obtained cocaine from Robert Porter and cooked most of that cocaine into crack cocaine, which he distributed to co-conspirators, including many fellow Vice Lord members.
Porter has also pleaded guilty to the drug conspiracy and is scheduled for sentencing on October 1, 2013.
Vance also provided drugs to his brother, James Farley, Jr., who took the drugs to Stewart County, Tenn. and intended to re-sale them. The buyers, however, tried to rob Farley of the drugs and during the robbery attempt, Farley shot and killed one of the robbers and attempted to kill the other one.
In another incident, three other co-conspirators, who are still pending trial and presumed innocent, are alleged to have killed Raymond Caston in Clarksville while conducting an armed home invasion robbery. Vance then helped these individuals flee Clarksville. Two of them were eventually arrested in Memphis, Tenn., and the third individual returned to Clarksville and conspired with Vance and another person to commit yet another drug-related robbery. That robbery was foiled as a result of the ongoing wiretap investigation.
The investigation was conducted by the Drug Enforcement Administration, the Tennessee Bureau of Investigation and the Clarksville Police Department, with assistance from other local and federal agencies. Assistant U.S. Attorneys Sunny A.M. Koshy and Lynne Ingram represented the United States.
Bridgeport Man Involved in Southeastern Connecticut Drug Ring Sentenced to 37 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that LARRY HARRIS, 57, of Bridgeport, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 37 months of imprisonment, followed by four years of supervised release, for distributing heroin.
In early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut.
According to court documents and statements made in court, on November 16, 2012, HARRIS traveled to a residence on Belden Street in New London, entered the house, exited approximately two minutes later and then drove away in his car. New London Police officers stopped the car a short distance away. During the traffic stop, officers found HARRIS with approximately 40 grams of heroin packaged in four separate plastic bags, and approximately $972 in cash on his person. HARRIS has admitted that some of the heroin was for personal use, and some he intended to sell to others.
On June 17, 2013, HARRIS pleaded guilty to one count of conspiracy to possess with the intent to distribute heroin.
Judge Arterton ordered the sentence to be served concurrent with a state sentence that HARRIS is currently serving.
More than 100 individuals have been charged with federal and state offenses as a result of this investigation.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant United States Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
PUBLIC AFFAIRS CONTACT:
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[email protected]Bismarck Man Sentenced for Possession of Child PornographyRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Sept. 16, 2013, Cory Scherer, 31, Bismarck, N.D., pleaded guilty and was sentenced by U.S. District Judge Daniel L. Hovland on a charge of possession of materials involving the sexual exploitation of minors.
Judge Hovland sentenced Scherer to serve four years and three months in federal prison, to be followed by 10 years of supervised release. Scherer was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
Scherer possessed numerous computer files that contained visual depictions of minors engaging in sexually explicit conduct.
This investigation was initiated by the North Dakota Internet Crimes Against Children Task Force and was a cooperative effort of Homeland Security Investigations, the North Dakota Bureau of Criminal Investigation and the Bismarck Police Department, with the assistance of the Burleigh County State’s Attorney’s Office.
This case was brought as a part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Assistant U.S. Attorney Gary Delorme prosecuted the case.
Ballard Resident who Repeatedly Sold Marijuana to Middle and High School Students Charged FederallyRead the Press Release
A resident of Seattle’s Ballard neighborhood was arrested this morning on a criminal complaint charging him with conspiracy to distribute marijuana, two counts of distribution of marijuana and possession of marijuana with intent to distribute, announced U.S. Attorney Jenny A. Durkan. ALEJANDRO ANTONIO CASTILLO, 51, came to the attention of law enforcement in March 2013 after a middle school parent reported students were purchasing marijuana from CASTILLO’s home a block north of Ballard High School. Surveillance of the home and purchases by undercover officers revealed that CASTILLO and his associates were repeatedly selling marijuana to minors including high school and middle school students from area schools. CASTILLO will appear in U.S. District Court in Seattle at 2:00 today.
“The Department of Justice priorities on marijuana are very clear – and one of the highest priorities is preventing the distribution of marijuana to minors,” said U.S. Attorney Jenny A. Durkan. “The sale of marijuana to these teen-agers not only impacts their ability to learn, it disrupts the educational experience for other students. This conduct is the reason we have stronger penalties for those who distribute drugs within 1000 feet of schools, parks and other places where children congregate.”
“There was a gap in the law from the time I-502 passed until the legislature fixed the legal definition of marijuana that would have made the case extremely problematic for state prosecutors. We appreciate federal prosecutors stepping in to handle this serious case of dealing marijuana to minors,” said King County Prosecutor Dan Satterberg.
According to the criminal complaint on various dates in April 2013, Seattle Police detectives observed teens from Whitman Middle School and Ballard High School approach the home where CASTILLO lives with his family members and associates. The teens would go to the back door of the home, be there for a few minutes and leave. Some were observed to be holding plastic bags of what appeared to be marijuana as they left. On April 5, 2013, detectives observed 18 teens between the age of 14 and 18 approach the house in a three hour period beginning just before noon. Most of the teens appeared to come directly from Ballard High School.
On four different occasions undercover officers posing as juveniles purchased both marijuana and brownies laden with marijuana from CASTILLO or his associates. On April 24, 2013, Seattle Police served a search warrant at the home and seized approximately 1,200 grams of suspected marijuana which included approximately 99 marijuana cigarettes, nine trays of suspected marijuana brownies, four shotguns, one rifle, six handguns, and $4,755 in U.S. Currency. According to police reports, the home had previously been targeted in a home invasion robbery. Two men had fired a shotgun into the house, CASTILLO fired back with one of his firearms, but the robbers fled and no one was hit by gunfire.
Conspiracy to distribute marijuana, two counts of distribution of marijuana and possession of marijuana with intent to distribute are punishable by up to five years in prison and a $250,000 fine.
The case is being investigated by the Seattle Police Department and the Drug Enforcement Administration (DEA) and is being prosecuted by Special Assistant United States Attorney Stephen Hobbs. Mr. Hobbs is a Senior Deputy King County Prosecutor specially designated to prosecute gun and drug cases in federal court.
Attorney General Eric Holder Releases Statement on the Washington Navy Yard ShootingRead the Press Release
The Attorney General issued the following statement today in the wake of the tragedy at the Washington Navy Yard:
“The thoughts and prayers of everyone at the Department of Justice are with the victims of this heinous attack, and their families. We also extend our sincerest gratitude to the local and federal law enforcement agents in our nation's capital who bravely responded to the scene and prevented this tragedy from claiming even more lives.
“From my time as U.S. Attorney for the District of Columbia, I understand the importance of seamless cooperation at every level of government in investigations like this one. The full resources of the Department of Justice will continue to be made available to support our law enforcement partners as our nation responds to this latest mass shooting.”
Art Dealer Pleads Guilty in ManhattanFederal Court to $80 Million Fake Art Scam,Money Laundering, and Tax ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that art dealer GLAFIRA ROSALES pled guilty today in Manhattan federal court to participating in a scheme to sell more than 60 fake works of modern art to two New York art galleries. Her victims paid more than $80 million for the fake works. ROSALES also pled guilty to conspiracy to sell the fake works, conspiracy to commit money laundering, money laundering, and several tax crimes related to the fake art scheme. ROSALES pled guilty before U.S. District Court Judge Katherine P. Failla.
Manhattan U.S. Attorney Preet Bharara said: “With her guilty plea today, Glafira Rosales acknowledges her role in a sprawling fraud that involved the commission of phony artworks she represented as real, and her efforts to hide the proceeds of this massive scam in foreign bank accounts. Rosales’s plea shows that no matter how wide-ranging the deception, this Office will continue to bring the perpetrators of fraud to justice.”
According to the allegations contained in the Complaint, Indictment, superseding Indictment, and statements made in court:
ROSALES was an art dealer who, starting in 1994 and continuing through 2009, sold more than 60 never-before-exhibited and previously unknown works of art (the “Works”) that she claimed were by the hand of some of the most famous artists of the twentieth century, such as Jackson Pollock, Mark Rothko, and Robert Motherwell. She sold the Works to two prominent Manhattan art galleries for approximately $33.2 million. The galleries, in turn, sold the Works to victims of ROSALES’s crime for more than $80 million.
The Works were fakes created by a painter (the “Painter”) who resided in Queens, New York. ROSALES conspired with her long-time companion, identified as a co-conspirator (“CC-1”) in the superseding Indictment, to procure and sell the Works and to launder the proceeds of the fraud. CC-1 first met and befriended the Painter in Manhattan in the 1980s while the Painter was painting on the street. The Painter, who received formal art training at an art school in New York, created the Works for ROSALES and CC-1 at the Painter’s home in Queens. In some instances, the Painter signed the purported artist’s name to the Works, such as Jackson Pollock, but in other cases, CC-1 applied the false signatures. After ROSALES and CC-1 retrieved the Works from the Painter, CC-1 gave the Works the false patina of age by subjecting the Works to a number of different treatments.
The provenance that ROSALES supplied for the Works was also false. In selling some of the Works, she purported to represent a particular client who was associated with Switzerland, had inherited the paintings and wanted to sell them, but also wished to remain anonymous (the “Purported Swiss Client”). For the remainder of the paintings, ROSALES purported to represent a Spanish collector (the “Purported Spanish Collector”). She further claimed that a portion of the price paid by the Manhattan galleries would be a commission to her for selling the paintings and that the remainder would be passed along to her clients. In truth and fact, the Purported Swiss Client never existed and the Purported Spanish Collector never actually owned any of the Works.
ROSALES also filed tax returns that falsely and fraudulently tended to show that she had not kept all or substantially all of the proceeds from the sale of the Works, when, in fact, ROSALES kept several million dollars of the proceeds.
ROSALES received most of the proceeds from the sale of the Works in a foreign bank account that she hid from, and failed to report to, the IRS. United States taxpayers are required to report to the IRS the existence of any foreign bank account that holds more than $10,000 at any time during a given year by the filing of a Report of Foreign Bank and Financial Accounts, Form TD F 90-22.1.
ROSALES, 57, of Sands Point, New York, pled guilty to nine counts, including: one count of conspiracy to commit wire fraud, one count of wire fraud, one count of conspiracy to commit money laundering, and one count of money laundering, each of which carries a maximum sentence of 20 years in prison; three counts of filing false federal income tax returns, each of which carries a maximum sentence of three years in prison; and two counts of willful failure to file Report of Foreign Bank and Financial Accounts, Form TD F 90-22.1, each of which carries a maximum sentence of five years in prison. ROSALES’s total maximum term of imprisonment is 99 years. She also agreed to forfeit $33,200,000, including her home in Sands Point, New York, and to pay restitution in an amount not to exceed $81 million. Rosales will be sentenced by Judge Failla on March 18, 2014 at 2:30 p.m.
Mr. Bharara praised the outstanding efforts of the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation in the investigation, which he noted is ongoing.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Jason P. Hernandez is in charge of the prosecution.
Rosales, Glafira S1 Indictment
Arizona Man Admits Role in Fraudulent Federal Income Tax Refund SchemeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that CHARLES ROSS, 41, of Surprise, Ariz., pleaded guilty today before Senior U.S. District Judge Warren W. Eginton in Bridgeport to one count of wire fraud stemming from his role in an extensive federal income tax refund scheme.
According to court documents and statements made in court, between November 2012 and May 2013, ROSS and others conspired to file false federal income tax returns in the names of individuals in Connecticut and elsewhere without the individuals’ knowledge. As part of the scheme, ROSS and others recruited victims by advertising that individuals were eligible for government funding. ROSS’s co-conspirator, who held herself out falsely to be a certified public accountant, used the victims’ names, dates of birth, and Social Security Numbers to prepare and file false federal income tax returns, and then directed a portion of the resulting tax refunds to herself, to ROSS, and to the victims through a prepaid debit card. ROSS also paid another co-conspirator who helped recruit victims.
When he is sentenced, ROSS faces a maximum term of imprisonment of 30 years.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation and the United States Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Allenwood Inmate Indicted for Assault of Another InmateRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that a federal grand jury in Williamsport returned an indictment on September 11 charging an inmate at the United States Penitentiary at Allenwood, Pennsylvania.
According to United States Attorney Peter J. Smith, Christopher Charles, age 30, is charged with assaulting another inmate at the Allenwood Penitentiary on June 26, 2012, causing the victim to suffer serious bodily injury.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney William Simmers.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Alabama Man Indicted for Multi-Year Stolen Identity Refund Fraud ConspiracyRead the Press Release
An indictment was unsealed today in Montgomery, Ala., charging Nakia Jackson with conspiracy to file false tax returns, theft of public funds and aggravated identity theft, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney for the Middle District of Alabama George L. Beck Jr. The indictment was unsealed following Jackson’s arrest.
According to the indictment, between January 2009 and March 2011, Jackson conspired with several individuals to file false tax returns using stolen identities, some of which Jackson obtained from a state employee. He used the stolen identities to file false tax returns and directed the tax refunds to several bank accounts. The bank accounts were opened by individuals Jackson recruited to receive the false refunds and directed them to withdraw the false refund money. Jackson also recruited a bank teller to aide in the scheme.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Jackson faces a maximum potential sentence of 10 years in prison for the charge of conspiracy to defraud the United States and for each count of theft of government money count, and a mandatory two-year sentence for the aggravated identity theft counts. He is also subject to forfeiture, fines and mandatory restitution if convicted.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles M. Edgar Jr. and Michael Boteler of the Justice Department’s Tax Division are prosecuting the case.*******MEDIA ADVISORY******* Press Conference to Announce Arrests in the Northern District's Ongoing Heroin Initiative to Attack Sources of the Highly Addictive and Deadly Drug in Our Communities.Read the Press Release
WHAT: Press conference
WHEN: MONDAY, Sept. 16, 2013
2 p.m.
WHERE: DEA Office
920 18th Street North
Birmingham, AL 35203
First FloorMedia should arrive approximately 30 minutes prior to press conference for set up.
NOTE: All media must show driver's license and valid media credentials. For additional information, contact Peggy Sanford at 205-244-2020, or [email protected].
Sunday 15 September 2013
Vermont Corrections Officer Charged with Engaging in Sexual Conduct with InmateRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that the Grand Jury has returned an Indictment charging Tracy Holliman, of South Burlington, with four counts of engaging in sexual acts with women who were held in federal custody at the Chittenden Regional Correctional Facility in South Burlington. The Grand Jury charged that Holliman engaged in this conduct with two different women who were being held relating to federal charges between April and June, 2013.
It is a federal felony for a correctional officer to engage in sexual acts with a federal inmate over whom the officer has custodial, supervisory, or disciplinary authority, while working at a federal facility or one that that contracts with the United States to house federal detainees. Consent is not a legal defense to corrections staff who engage in sexual acts with inmates. The United States Attorney noted that this is due to several factors, including the inherent inequality between inmates and correctional staff.
Holliman is presumed innocent until and unless he is convicted after a trial or pleads guilty.
Following his arrest, Holliman was arraigned before United States Magistrate Judge John M. Conroy and released on conditions.
Working in cooperation with the Vermont Department of Corrections, this matter was investigated by the United States Marshals Service, the Federal Bureau of Investigation, and the Vermont State Police.
Holliman is represented by Mark Kaplan, Esq., of Burlington.
Saturday 14 September 2013
Southern Oregon Couple Indicted in Mail Theft Scheme to Defraud VictimsRead the Press Release
sub titleMEDFORD, Ore. – Gregory Brooks 49, and Michelle Lustig, 44, of Grants Pass, Oregon, were indicted by a federal grand jury. Both were charged with conspiracy to commit mail theft and bank fraud and committing aggravated identity theft. The charges involve the theft of mail from over 400 victims in communities located in Jackson and Josephine Counties during a four month period beginning in March 2013, and include a scheme in using the victim’s stolen personal identity to defraud banks and local merchants. Brooks was arraigned on the charges before Federal Magistrate Judge Mark Clarke who set Brook’s trial for November 19, 2013. Brooks remains in federal custody. Arrest warrants have been issued for Lustig and anyone with information about her whereabouts is requested to contact the Grants Pass Department of Public Safety or their nearest law enforcement agency.
An indictment (see attached) is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty. If convicted, the sentences range from maximum sentences of 5 to 30 years in prison, with a mandatory minimum sentence of two years for an aggravated identity theft conviction.
The U.S. Attorney’s Office is working with the U.S. Postal Inspection Service, Grants Pass Department of Public Safety and the Jackson County Sheriff’s office in the investigation and prosecution of this case.
For more information, please see the attached indictment Here
Friday 13 September 2013
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
James Tolson, 39, of Wabash, Indiana, pled guilty before Magistrate Judge Christopher A Nuechterlein to the felony offense of being a felon in possession of firearm. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing is set for 12/12/2013.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives .This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Gary Wright, 32, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of knowingly possessing a firearm in furtherance of a drug trafficking offense. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 12/17/2013.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Brock Crowe, 38, of North Delphi, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of knowingly and intentionally conspiring to deliver over 500 grams of cocaine. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 12/19/2013.This charge was filed as a result of an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Nora Guardiola, 35, of Shelton, Illinois, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of knowingly and intentionally distributing cocaine. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 12/1/2013.This charge was filed as a result of an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Joseph Olivo, 33, of Rolling Prairie, Indiana, pled guilty before District Judge Jon E. DeGuilio to the felony offenses of conspiracy to distribute over 100 kilograms of marijuana, distribution of heroin, being a felon in possession of a firearm and maintaining a residence to distribute marijuana.Sentencing has been set for 12/5/2013.This case resulted from an investigation by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney William Grimmer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Joseph Bradshaw, Jr, 31, of Warsaw, Indiana was sentenced by District Judge Robert L. Miller Jr. to 80 months imprisonment to be served consecutive to an undischarged term of imprisonment in Indiana cause number 71D02-1206-FB-00098 with 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm.According to documents filed in this case, on April 7, 2011, Warsaw Police responded to a complaint of drug use and paraphernalia at a residence.The response led to officers finding a .22 cal. semi-automatic handgun at a second location.Bradshaw Jr. was questioned and admitted he stole the firearm from a relative. Mr. Bradshaw Jr. has theft and sexual battery felony convictions. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Frank Schaffer .
Ronald Brownlee, 47, of South Bend, Indiana was sentenced by District Judge Robert L. Miller Jr. to 60 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of knowingly possessing a stolen firearm.According to documents filed in this case, on or about March 13, 2013, law enforcement searched Brownlee’s home in South Bend and recovered four stolen firearms.Upon further inspection, law enforcement was able to determine the weapons in question were not manufactured in Indiana and thus affected interstate or foreign commerce. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Frank Schaffer .
Darrius Agnew, 33, of Mishawaka, Indiana was sentenced by District Judge Robert L. Miller Jr. to 120 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of possession of a stolen firearm.According to documents filed in this case, Agnew was on home detention under the supervision of the Ducomb Center in November 2012. Agnew refused to let a Ducomb Center employee into his apartment in early November 2012. Local law enforcement did later search Agnew’s residence and discovered firearms including an Uzi 9mm, a Springfield XD pistol and a Winchester 1400 MK II 12 gauge shotgun.Upon further inspection, it was determined the Springfield was reported stolen in 2011.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Brison Williams, 20, of South Bend, Indiana was sentenced by District Judge Robert L. Miller Jr to 97 months imprisonment and 2 years supervised release after pleading guilty to the felony offense of racketeering.According to documents filed in this case, in 2010 and 2011, Williams was a member of the criminal enterprise, Cash Out Boyz.During his time with the organization, Williams trafficked in marijuana and was involved in the confrontation of a Boyz member which led to a shooting and beating. Williams was also involved in additional numerous violent criminal activities.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the South Bend Police Department.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Abdkadr Mohammad, 29, of Chicago, Illinois, pled guilty before Chief Judge Philip Simon to the felony offense of conspiracy to defraud the USDA’s SNAP benefit program.Sentencing has been set for 1/10/14.This charge was filed as a result of an investigation by the Federal Bureau of Investigation and the US Department of Agriculture/Office of the Inspector General.This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
Miguel Herrera-Torres, 32, of Chicago, Illinois, pled guilty before Senior District Judge Rudy Lozano to the felony offense of re-entry of a deported alien.Sentencing has been set for 12/11/13.This charge was filed as a result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case is being prosecuted by Special Assistant United States Attorney Armando Salinas.
Julius Solis, 24, and Michael Castillo, 22, both of East Chicago, Indiana and defendants in the case US v Briseno et al., pled guilty before Chief Judge Philip Simon this week.Both pled guilty to the felony offense of conspiracy to participate in racketeering activity.Additionally, Solis pled guilty to the use of a firearm during a federal crime of violence and drug trafficking crime and Castillo pled guilty to conspiracy to possess with the intent to distribute cocaine and marijuana. These charges were filed as a result of an investigation by This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the East Chicago Police Department, and the Federal Bureau of Investigation, with assistance from the Gary Police Department, the Hammond Police Department and the Lake County HIDTA.This case is being prosecuted by Assistant United States Attorney David Nozick
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Amin Velazquez, 33, of Rensselaer, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 30 months imprisonment and 2 years of supervised release if not deported after pleading guilty to the felony offense of conspiracy to distribute cocaine.According to documents filed by the government in this case, Velazquez was responsible for assisting with the transportation of a significant amount of cocaine. This case was the result of an investigation by the Drug Enforcement Administration and the Illinois State Police.This case was prosecuted by Assistant United States Attorney Joshua Kolar.
Daniel Roman, 33, of Hammond, Indiana, was sentenced by Chief Judge Philip Simon to 56 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon. According to documents filed in this case, Roman has a prior conviction for burglary and was on probation at the time of the instant offense. Roman’s illegally possessed a firearm while possessing with the intent to distribute marijuana.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Terry Carlyle, 56, of Mooresville, Indiana, was sentenced by Chief Judge Philip Simon to 120 months imprisonment and 5 years of supervised release after pleading guilty to the felony offense of conspiracy to possess with the intent to distribute and distribute cocaine.Carlyle, a former Marshal with the Brooklyn, Indiana Police Department and police officer with the Indianapolis Police Department, along with John Smith, a former Brooklyn Police Department officer, used their police credentials in their efforts to protect drug shipments. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Indiana State Police and the Indianapolis Metropolitan Police Department.This case was prosecuted by Assistant United States Attorney David Nozick.
David Finley, Jr., 32, of Merrillville, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 30 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of making false statements in the purchase of a firearm and distribution of marijuana.According to documents filed in this case, Finley, a former Gary Police Officer, committed multiple crimes during a three week period by straw purchasing a handgun for a friend (a convicted felon) and selling marijuana.While awaiting sentencing on these crimes, Finley provided false information to the Court by submitting fake character letters .This case was the result of an investigation by the Federal Bureau of Investigation GRIT Task Force and the Gary Police Department.This case was prosecuted by Assistant United States Attorney Gary Bell.
Tamika Gayden, 32, of Gary, Indiana, was sentenced by Senior District Judge Rudy Lozano to 12 months of probation to include 6 months of home detention after pleading guilty to the felony offense of making false statements in connection with the purchase of firearms.According to documents filed in this case, Gayden straw-purchased five firearms for other individuals.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Dean Lanter.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
INDICTMENT:
Michael English, 33, of Gary, Indiana, was charged with 3 counts of distribution of marijuana, 1 count of possession of firearms by a convicted felon and 1 count of possession of an unregistered firearm.These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Gary Police Department.This case has been assigned to and will be prosecuted by Special Assistant United States Attorney Armando Salinas.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
PLEAS:
Diamond Toney, 20, of Merrillville, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of aiding and abetting the brandishing of a firearm during a crime of violence.Sentencing has been set for 11/25/13.This charge was filed as a result of an investigation by Federal Bureau of Investigation GRIT Task Force and the Merrillville Police Department.This case is being prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Jose Ortiz, 32, of Chicago, Illinois, a defendant in the case US v Yepez et al., pled guilty before Chief Judge Philip Simon to the felony offense of conspiracy to possess with the intent to distribute cocaine.This charge was filed as a result of an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorneys Jennifer Chang-Adiga and Thomas McGrath.
Antonio Wilson, 31, of Gary, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offense of distribution of cocaine base within 1000 feet of a school.This charge was filed as a result of an investigation by the Federal Bureau of Investigation and the Gary Police Department.This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
Timothy Yatsko, 41, of Lake Station, Indiana, pled guilty before Senior District Judge James Moody to the felony offense of possession of a firearm.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force.This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Steven Biggs, 61, of Gary, Indiana, a defendant in the case US v Crawford et al., was sentenced by Senior District Judge James Moody to 1 year of probation after pleading guilty to the felony offense of use of a communication facility to facilitate a conspiracy to distribute marijuana. According to documents filed in this case, Biggs purchased marijuana in a sufficient quantity to redistribute a portion to his friends for purposes of subsidizing his own use of marijuana. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Internal Revenue Service.This case was prosecuted by Assistant United States Attorney Jacqueline Jacobs.
Hector Garcia, 35, of Cicero, Illinois, a defendant in the case US v Vasquez et al., was sentenced by District Judge Joseph Van Bokkelen to 37 months of imprisonment and 2 years of supervised release after pleading guilty to the felony offenses of possession and distribution of cocaine.This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney David Nozick.
David Hardin, Jr., 25, of Gary, Indiana, a defendant in the case US v Miller et al., was sentenced by Senior District Judge Rudy Lozano to 365 months of imprisonment, 3 years of supervised release and $79,919.56 in restitution after pleading guilty to the felony offense of the bank robbery of BMO Harris Bank in Hammond, Indiana.According to documents filed in this case, a Hammond police officer was shot three times in his leg during the robbery.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney David Nozick.
Jeffrey A. Smith, 33, of Valparaiso, Indiana, was sentenced by Chief Judge Philip Simon to 84 months imprisonment and 10 years of supervised release after pleading guilty to the felony offense of possession of child pornography.According to documents filed by the government in this case, Smith “friended” the victim on MySpace and asked the victim, who he knew to be 15 years old at the time, to send him sexually explicit photos of herself.Smith also transported the victim in interstate commerce, in this case from Ohio to Indiana, with the intent that she engage in sexual activity. This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Jill Koster.
Deanbra Martin, 33, of Gary, Indiana, was sentenced by Chief Judge Philip Simon to 33 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm and ammunition by a convicted felon. According to documents filed in this case, Martin was on probation at the time of the instant offense.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Michigan City Police Department.This case was prosecuted by Assistant United States Attorney Joshua Kolar.