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8 November 2013
Engineer Who Made False Statements to Agents in Connection with Theft of Trade Secrets Is SentencedRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JIAN MI, 39, a citizen of China and a lawful permanent resident of the U.S., was sentenced today by U.S. District Judge Michael P. Shea in Hartford to one year of probation for lying to federal agents investigating the theft of trade secrets from her employer.
According to court documents and statements made in court, on July 22, 2011, JIAN MI knowingly made a materially false statement to agents of the Federal Bureau of Investigation by informing them that she had not shared sensitive proprietary information with a competitor of her previous employer. At the time, she knew that she had, in fact, emailed a comprehensive PowerPoint presentation to representatives of the competitor where she was applying for a job as an engineer.
As part of her sentence, JIAN MI was ordered to pay restitution of $81,888 to her previous employer as reimbursement for costs the company had incurred investigating her conduct.
On July 17, 2013, JIAN MI pleaded guilty to one count of count of making a false statement to a federal law enforcement officer.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Paul H. McConnell.
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(203) 821-3722 [email protected]Eight Individuals Indicted for Crimes Involving the Sexual Victimization of ChildrenRead the Press Release
Today, U.S. Attorney Kenneth Allen Polite, Jr. announced that a Federal Grand Jury handed down indictments charging the following eight (8) individuals with crimes involving the sexual exploitation of children:
DANIEL NOLAN DEVOR, age 39, of Brunswick, Georgia; JOHN C. FOSTER, age 44, of Tipp City, Ohio; AUNG GAW, a/k/a Michael Gaw, age 25, of Fremont, California; SEAN JABBAR, age 32, of Minneapolis, Minnesota; CHRISTOPHER JAMIESON, age 30, of Douglasville, Georgia; ANDREW J. KORPAL, age 29, of Granger, Indiana; NICHOLAS SAINE, age 27, of Seattle, Washington; and
STANLEY ZDON, III, age 27, of Tuckerton, New Jersey.
DEVOR and FOSTER were charged with Distribution and Receipt of Child Pornography which each carry a mandatory minimum sentence of five (5) years and a maximum sentence of twenty (20) years. GAW, JABBAR, JAMIESON, KORPAL, SAINE, and ZDON were charged with Receipt of Child Pornography which carries a mandatory minimum sentence of five (5) years and a maximum sentence of twenty (20) years. In addition, each defendant will be placed on a term of supervised release after imprisonment for a minimum of five (5) years up to life. If convicted, each defendant will have to register as a sex offender.“These indictments represent a strong coordinated strike – by Homeland Security, the U.S. Postal Inspection Service, and several U. S. Attorney’s Offices around the country – against child pornography and those who allegedly seek to harm our most vulnerable citizens, our young children,” stated U. S. Attorney Kenneth Allen Polite, Jr.
“Child sexual predators cause significant harm to our society by inflicting horrific abuse on innocent children,” said HSI New Orleans Special Agent in Charge Raymond R. Parmer Jr. "Predators do all they can to hide their online actions, but these arrests show that in even the darkest corners of the Internet, HSI and its law enforcement partners will investigate and seek prosecution wherever these criminals may be found.” Parmer oversees a five-state region including Louisiana, Alabama, Arkansas, Mississippi and Tennessee.
“Postal Inspectors investigate a wide variety of crime in our mission to protect the integrity of the U.S. Mail, but sexual exploitation of children is particularly heinous,” said U.S. Postal Inspection Service Inspector in Charge Robert Wemyss. “When these predators use a combination of mail and the Internet, we appreciate partnering with other law enforcement partners such as HSI to ensure no aspect of their crimes escape justice.”
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.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by the U.S. Department of Homeland Security-Homeland Security Investigations and the U.S. Postal Inspection Service. The prosecution of this case is being handled by Strike Force Chief and Project Safe Childhood Coordinator, Assistant U. S. Attorney Brian M. Klebba.
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Doctor Sentenced to Probation with Community Confinement for Filing False Tax ReturnsRead the Press Release
PITTSBURGH - A Pittsburgh-area physician was sentenced today in federal court to five years probation with nine months community confinement at Renewal, Inc., followed by nine months home detention, on his conviction of filing a false tax return, United States Attorney David J. Hickton announced today.
United States District Court Arthur J. Schwab imposed sentence upon Neil M. Niren, M.D. As part of his sentence, Niren was fined $40,000 and ordered to pay restitution in the amount of $451,001.
According to information presented to the court, Niren, who operated his medical practice as a sole proprietorship, knowingly filed a false income tax return for 2005. Niren also accepted responsibility for filing false tax returns for years 2006 through 2008. Niren maintained two sets of accounting books and knowingly concealed payments received directly from patients. For each of the tax years, 2005, 2006, 2007 and 2008, Niren falsely claimed thousands of dollars of personal expenses as business expenses of his medical practice, including a Bahamas vacation at the Atlantis Resort, apartment furniture, custom jewelry, fine art from the Adi Tobenhouse Gallery in Israel, cosmetic surgery, a gym membership, appliances for Niren's rental property in Pittsburgh and interior design work for Niren's New York apartment.
Assistant United States Attorney Mary McKeen Houghton and Department of Justice Tax Division Trial Attorney Jed Silversmith prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation, leading to the successful prosecution of Niren.
District Man Sentenced to 12-Year Prison Term for Shooting Man Who Asked Him to Leave His PorchDefendant Was Trespassing with A Group That Was Smoking, Drinking and GamblingRead the Press Release
WASHINGTON – Anthony Cole, 27, of Washington, D.C., was sentenced today to 12 years in prison for shooting a man on the front porch of the victim’s home in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Cole was found guilty by a jury in June 2013 of aggravated assault while armed, assault with a dangerous weapon, and unlawful possession of a firearm. The verdict followed a trial in the Superior Court of the District of Columbia. Cole was sentenced by the Honorable Stuart G. Nash. Upon his release from prison, Cole will be placed on five years of supervised release.
According to the government’s evidence, on July 26, 2012, at about 11:45 p.m., Cole and a group of friends were smoking, drinking and gambling on the victim’s front porch on Langston Place SE, in the Woodland Terrace housing complex. The victim had never given Cole permission to enter the porch, and had been inside the house with his children, who were bothered by the noise and smoke. The victim asked Cole and his friends to leave, but they refused. Instead, Cole began menacing the victim, firing a gun twice before aiming a third shot at the victim’s leg. The bullet smashed the victim’s thigh bone into pieces.
Cole fled the scene to evade police detection. He was arrested months later.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of the U.S. Marshals Service, which located the defendant after a warrant was issued for his arrest. In addition, he commended the work of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Lynette Briggs and Richard Cheatham; Litigation Technology Specialists Thomas (Ron) Royal, Josh Ellen, and William Henderson; James Brennan, Michael Hailey, and M. Laverne Forrest, all of the Victim Witness Assistance Unit; Child Forensic Interviewer Tracy Owusu, and Assistant U.S. Attorney Demian S. Ahn, who investigated and prosecuted the case.
13-387Council Bluffs Resident Sentenced for Maintaining A Drug Involved PremisesRead the Press Release
COUNCIL BLUFFS, IA - On November 7, 2013, Justin Ray Smith, a 27 year-old resident of Council Bluffs, Iowa, was sentenced by United States District Court Chief Judge James Gritzner to 60 months in prison for maintaining a drug involved premises, announced United States Attorney Nicholas A. Klinefeldt. Chief Judge Gritzner also ordered Smith to serve a two-year term of supervised release following incarceration.
On February 8, 2013, Smith pled guilty to maintaining a drug involved premises. The charge was the result of an investigation conducted by several law enforcement agencies into the importation and distribution of marijuana by a known drug trafficking group operating in the Council Bluffs, Iowa, and Omaha, Nebraska, area. Marijuana was distributed by the group from May of 2009, through March of 2012. Smith maintained a residence located at 19544 Monument Road, Council Bluffs, Iowa, as a storage location and distribution point for the drug trafficking organization.
Prior to sentencing Justin Smith, Chief Judge James Gritzner sentenced co-defendants as follows:
On March 8, 2013, Christopher Brandt, a 30 year-old resident of Council Bluffs, Iowa, was sentenced to 36 months imprisonment for conspiracy to distribute marijuana.
On April 18, 2013, David L. Lopez, Jr., a 40 year-old resident of Omaha, Nebraska, was sentenced to 48 months in prison for conspiracy to distribute marijuana;
On May 31, 2013, Dennis Smith, a 28 year-old resident of Council Bluffs, Iowa, was sentenced to 84 months in prison for conspiracy to distribute marijuana and money laundering;
On May 31, 2013, Nicholas Barnes, a 26 year-old resident of Council Bluffs, Iowa, was sentenced to 48 months in prison for conspiracy to distribute marijuana; and
On May 31, 2013, Gene Smith, a 29 year-old resident of Council Bluffs, Iowa, was sentenced to 41 months in prison for maintaining a drug involved premises;
The investigation was conducted by the Council Bluffs, Iowa, Police Department, the Southwest Iowa Narcotics Task Force, Omaha, Nebraska, Police Department, the Iowa Division of Narcotics Enforcement, the Pottawattamie County Attorney’s Office, the Internal Revenue Service-Criminal Investigation, and the Drug Enforcement Administration. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
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Conway Wealth Team International Association Business Owner Sentenced to 27 Months for Filing False Tax ReturnsRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office; announced that on Thursday, November 7, 2013, United States District Judge J. Leon Holmes sentenced Richard C. Mathews, age 61, of Conway, to 27 months imprisonment with no supervised release. Mathews was ordered to pay $56,904.29 in restitution to the IRS. Mathews was ordered to report to the Bureau of Prisons on Monday, January 6, 2014. Mathews was released on his own recognizance after his court appearance.
Mathews was convicted by a jury on July 30, 2013, of five counts of filing false income tax returns and one count of obstructing the IRS laws. According to the Superseding Indictment filed July, 11, 2012, Mathews was self-employed operating a business soliciting members for a $99 joining fee into his system of making money by encouraging more members to join his online multi-level marketing network known as MMS and Wealth Team International (WTIA). The more people a member solicited to join MMS or WTIA, the more money the members and Mathews could make. Mathews stated on his federal tax returns that he had gross receipts of $22,201 for the five year period from 2004 to 2008, when in fact his bank records showed business deposits of $245,300.42. During the investigation, Mathews made false statements to and regarding actions taken by IRS agents, created a trust to avoid payment of taxes, and filed false returns.
The case was investigated by the agents from the IRS-Criminal Investigations. The case was prosecuted by First Assistant United States Attorney Pat Harris and Assistant United States Attorney Jamie Dempsey.
California Woman Indicted for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that an Anaheim, California, woman has been indicted by a federal grand jury for Failure to Pay Child Support.
Cheryl K. Ernesti, a/k/a Cheryl K. Houska and Cheryl K. Pangan, age 42, was indicted by a federal grand jury on April 2, 2013, for failing to pay over $19,853 in past due child support. She appeared before U.S. Magistrate Judge John E. Simko on November 6, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is two years' imprisonment and/or a $250,000 fine, one year supervised release, one additional year upon revocation, a $100.00 assessment fee to the Federal Crime Victims Fund, and child support restitution amount owing at the time of sentencing.
The charge is merely an accusation and Ernesti is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.
Ernesti was released on bond pending trial. A trial date has not been set.Brooklyn Woman Arraigned on Credit Card Fraud ChargesRead the Press Release
Obtained More Than $500,000 of Gift Cards from Grocery Stores in Five States
ALBANY, NEW YORK – JAMESE L. WILLIAMS, 27, of Brooklyn, appeared today before Magistrate Judge Christian F. Hummel in federal court in Albany to be arraigned on a September 4, 2013 indictment charging her with conspiracy, access device fraud, and aggravated identity theft, announced United States Attorney Richard S. Hartunian and United States Secret Service Resident Agent in Charge William Leege.
According to the indictment, the charges relate to her use of counterfeit credit cards to fraudulently obtain more than $500,000 of gift cards at grocery stores in New York, Connecticut, Vermont, Massachusetts, and New Hampshire between October 2012 and January 2013. If convicted, WILLIAMS faces up to 5 years in prison on the conspiracy charge, 10 years in prison on the access device charge, and a mandatory two year consecutive term of imprisonment on the aggravated identity theft charge. She could also be ordered to pay a fine of up to $250,000 on each count.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent until and unless proven guilty.
Box Elder Man Sentenced for Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Box Elder, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on November 6, 2013, by U.S. District Judge Roberto A. Lange.
Joseph McGregor, age 32, was sentenced to 1 month of imprisonment followed by 5 months of home confinement, a $1,000 fine, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. The Court also ordered a preliminary forfeiture of McGregor’s vehicle and a firearm found in the trunk of the vehicle.
McGregor was indicted for the above charge by a federal grand jury on April 2, 2013. He pled guilty on August 20, 2013.
The conviction stems from an incident occurring on March 24, 2013, when Rosebud Sioux Tribe Law Enforcement (RSTLE) initiated a traffic stop on McGregor’s vehicle because a headlight was out. While the officer ran a license status on McGregor, another RSTLE officer arrived on scene and eventually deployed his narcotics detection dog, who indicated on McGregor’s vehicle. Law enforcement searched McGregor’s vehicle and found 3 bags of marijuana with a total weight of 2.9974 pounds, several scales, two smaller bags of marijuana and methamphetamine, a grinder, 2 hand-rolled cigarettes with an odor of marijuana, a roach clip, and 2 packs of rolling papers.
The investigation was conducted by RSTLE, the Mission City Police Department, Northern Plains Safe Trails Drug Enforcement Task Force, and the Federal Bureau of Investigation. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
McGregor is to self-report to serve his custody sentence on November 13, 2013.
Belcourt Man Pleads Guilty to MurderRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Nov. 8, 2013, Daniel Greatwalker Jr., 23, Belcourt, N.D., pleaded guilty in U.S. District Court to a charge of second degree murder and a charge of altering, destroying, or concealing a tangible object in a federal investigation.
On Nov. 27, 2012, Greatwalker stabbed a victim multiple times throughout his body, causing his death. Greatwalker then disposed of the knife, washed his clothes, and burned his shoes to conceal his involvement in the death.
The charge of second degree murder carries a statutory maximum penalty of life in federal prison and a $250,000 fine. The charge of altering, destroying, or concealing a tangible object in a federal investigation carries a statutory maximum penalty of 20 years in federal prison and a $250,000 fine.
The case was investigated by the Bureau of Indian Affairs – Turtle Mountain Agency and the Federal Bureau of Investigation.
Sentencing for Greatwalker has been scheduled for Feb. 10, 2014, in U.S. District Court in Bismarck, N.D., at 2:30 p.m.
Assistant U.S. Attorney Brandi Sasse Russell is prosecuting the case.
Baltimore Felon Exiled to 15 Years in Prison for Possessing A Gun and AmmunitionRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Larvon Langley, age 43, of Baltimore, Maryland, today to 15 years in prison, followed by four years of supervised release, for being a felon in possession of a firearm and ammunition. Judge Hollander enhanced Langley’s sentence upon finding that he is an armed career criminal based on three previous drug trafficking convictions.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.According to his plea agreement, on April 18, 2012, law enforcement executed a search warrant at Langley’s residence and seized a .40 caliber semi-automatic pistol, 12 rounds of ammunition and heroin. Langley, a convicted felon, was prohibited by federal law from possessing a gun or ammunition.
United States Attorney Rod J. Rosenstein commended the ATF, DEA, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Ayn B. Ducao, who prosecuted the case.
Ball Man Sentenced to 70 Months in Prison for Possessing Child PornographyRead the Press Release
ALEXANDRIA, La. – U.S. Attorney Stephanie A. Finley announced today that Alexander Maciver, 24, of Ball, La., was sentenced before U.S. District Judge Dee D. Drell to 70 months in prison and five years of supervised release for possessing child pornography. He will also be required to register as a sex offender. Maciver pleaded guilty on April 30, 2013.According to evidence presented at the guilty plea, authorities discovered more than 10 images of child pornography and one video on MacIver’s laptop, after authorities executed a search warrant of his home on July 18, 2011. The images and video involved minors engaged in sexually explicit conduct. Maciver admitted to downloading the material off the internet.
The Rapides Parish Sheriff’s Office and the U.S. Department of Homeland Security-Lafayette investigations unit conducted the investigation. This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be submitted anonymously.
Assistant U.S. Attorney James T. McManus prosecuted the case.
Arkansas Man Indicted for Robbing Blackwater BankRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Bella Vista, Ark., man has been indicted by a federal grand jury for the robbery of Alliant Bank in Blackwater, Mo.
Timothy Patrick Hoyt, 43, of Bella Vista, was charged in an indictment returned by a federal grand jury in Jefferson City on Thursday, Nov. 7, 2013. The federal indictment alleges that Hoyt stole $5,123 from the bank on June 26, 2013.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by FBI, the Cooper County, Mo., Sheriff’s Department and the Altoona, Iowa, Police Department.
7 November 2013
Yakima Man Sentenced to 15 Years in Federal Prison for Being an Armed Career CriminalRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Carl Eugene Gonderman, age 37, of Yakima, Washington, was sentenced today for being a previously convicted felon in possession of a firearm. United States District Court Judge Lonny R. Suko sentenced Gonderman to a 15 year term of imprisonment pursuant to the Armed Career Criminal Act, and a five year term of court supervision following release from Federal prison.
According to information disclosed during court proceedings, on April 14, 2012, Yakima police officers attempted to stop a pickup truck reported as stolen. The driver, Gonderman, then drove recklessly through city streets and residential areas at speeds up to 60 m.p.h., failed to stop for traffic signals, and at one point went airborne. Officers stopped the pursuit due to the danger to the public. A short time later, officers located the truck where it had crashed into a residential garage. Gonderman and his passenger had fled the vehicle but were apprehended shortly thereafter. Officers discovered a loaded Smith & Wesson .38 caliber revolver on the driver's floorboard of the pickup. Gonderman was charged with being a previously convicted felon in possession of a firearm and he pleaded guilty to that crime on June 13, 2013. At sentencing, Judge Suko noted that Gonderman has roughly a dozen prior felony convictions. The Court ordered that Gonderman's sentence run concurrent to his related state convictions arising from the incident and that he receive credit for time spent in state custody.
Michael C. Ormsby said, "Prosecuting firearms-related crimes continues to be a priority for the United States Attorney's Office for the Eastern District of Washington. In this case, the Yakima City Police Department partnered with Special Agents working for the Bureau of Alcohol, Tobacco, Firearms and Explosives to successfully prosecute this Federal case. Previously convicted felons should be aware that there are serious criminal penalties connected with possessing any firearm and that this Office is committed to prosecuting aggressively firearms-related cases in the Eastern District of Washington."
The case was investigated by the Yakima City Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Ian L. Garriques, an Assistant United States Attorney for the Eastern District of Washington.
12-2045-LRS
Waterloo Man Sentenced to over Nineteen Years' Imprisonment for Robbing Two Banks and Assaulting A CustomerRead the Press Release
A man who robbed banks in Aurora and Frederika, Iowa, and pistol whipped a bank customer during the robbery in Frederika, was sentenced today in federal court in Cedar Rapids to 235 months in federal prison.
Steven Vandewalker, 38, from Waterloo, Iowa, received the prison term after a July 30, 2013, guilty plea to one count of bank robbery and using a dangerous weapon to assault another person during the course of the robbery.
In a plea agreement, Vandewalker admitted he entered a bank in Frederika, Iowa, around 12:30 p.m. on October 23, 2012, carrying a handgun. Vandewalker was wearing a baseball cap and a mask covering the bottom of his face. After entering the bank, Vandewalker went into an office where a bank employee and a customer were talking and yelled at the two to get on the floor. Vandewalker then hit the customer in the face with the handgun, causing the customer to fall to the floor and breaking the customer’s right orbital socket. Vandewalker then went behind the teller counter and had a teller give him cash from the drawers and the bank safe. Vandewalker then fled the bank with more than $36,000. On October 26, 2012, officers searched Vandewalker’s home in Waterloo, finding $26,000 in cash and a handgun. At the sentencing hearing, Vandewalker admitted he also robbed a bank in Aurora, Iowa, on September 11, 2012, making off with over $11,000.
Vandewalker was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Vandewalker was sentenced to 235 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to make $30,005.38 in restitution to both banks and two insurance companies. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Vandewalker is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by Iowa Division of Criminal Investigation, the Bremer County Sheriff’s Office, the Buchanan County Sheriff’s Office, the Waterloo Police Department, and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 13-CR-02010.
Warsaw Man Sentenced on Federal Firearm ChargesRead the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on Nov. 7, 2013, John Harry Woolsey, Jr., of Warsaw, N.D., was sentenced before U.S. District Judge Ralph R. Erickson on one count of felon in possession of a firearm and one count of felon in possession of ammunition.
Judge Erickson sentenced Woolsey, Jr. to seven years’ imprisonment to be followed by three years of supervised release. Woolsey, Jr. was also ordered to pay a $200 special assessment to the Crime Victims Fund.
On Aug. 21, 2013, Woolsey, Jr., was found guilty by a 12- person jury of possessing a German-made 6-shot .22 short caliber revolver and Remington .22 short caliber ammunition. Federal firearm statutes prohibit possession of firearms and ammunition by a convicted felon. According to the Indictment filed, Woolsey, Jr. had been previously convicted in Arizona of three violent felonies for aggravated assault and resisting arrest in 2001 and 2006.
Woolsey, 38, formerly of Montana, moved to the Warsaw, N.D., area in July of 2011. In December of that year, Woolsey loaned the revolver to a friend. During the early morning hours of April 20, 2012, Woolsey, Jr., also gave the same friend a box of Remington .22 short caliber ammunition for the gun, which Woolsey, Jr. had possessed at his home in Warsaw, N.D. The revolver and ammunition were recovered by the Walsh County Sheriff’s Department later that morning at the scene of an attempted suicide near Ardoch, N.D.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Walsh County Sheriff’s Department; and the Grand Forks Narcotics Task Force (which includes officers from Grand Forks, Walsh, and Pembina County Sheriff’s Departments; Grand Forks, Grafton and University of North Dakota Police Departments, U.S. Border Patrol, and Homeland Security Investigations).
Assistant U.S. Attorney Scott J. Schneider prosecuted the case.
Virginia Man Sentenced to More Than 12 Years in PrisonOn Child Pornography ChargesRead the Press Release
WASHINGTON – Jeffrey Klenk, 25, of Alexandria, Va., was sentenced today to 12 years and seven months in prison on charges of distribution and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Klenk pled guilty to the charges in June 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Richard J. Leon. Upon completion of his prison term, Klenk will be placed on 25 years of supervised release. He also must register as a sex offender for 25 years.
According to the government's evidence, in September and October of 2012, Klenk contacted a man he believed to be the father of an adolescent girl on a social network site. That man turned out to be an undercover officer with the FBI's Child Exploitation Task Force. Over a month-long period, Klenk engaged in online e-mail and instant message conversations with the undercover officer.
During this period of time, Klenk used the computer at his home to send the undercover officer a total of 45 unique images of child pornography, as well as several pictures of child erotica and clothed and unclothed children. On Oct. 18, 2012, Klenk’s residence was searched pursuant to a warrant, and various items were seized, including videos of child pornography. Klenk was arrested that day. All told, officers recovered approximately 13 videos and over 325 images of child pornography from the defendant’s computers and computer equipment.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force who investigated the case. They also commended the efforts of Assistant U.S. Attorney Cassidy Kesler Pinegar, who prosecuted the case, and Assistant U.S. Attorney Catherine K. Connelly, who assisted with forfeiture issues.
13-382Violent Norteño Street Gang Member Sentenced to Five Life Terms Plus Sixty Years in Federal PrisonRead the Press Release
SAN FRANCISCO – Joseph Ortiz was sentenced to five consecutive life terms plus 60 months in federal prison today after pleading guilty last July, to twenty-five federal charges, including three counts of racketeering murder, eight counts of attempted racketeering murder, two counts of robbery affecting interstate commerce, racketeering conspiracy, conspiracy to commit racketeering murder, multiple firearms violations, and multiple violations related to the obstruction of justice, announced United States Attorney Melinda Haag.
According to court records, Ortiz, 23, of South San Francisco, is a member of the 500 Block gang, a Norteño street gang in South San Francisco. Members of the 500 Block gang are allied with members of another Norteño gang in South San Francisco, the C Street gang, and the united 500 Block/C Street Gang engaged in crimes such as robbery, narcotics trafficking, and murder. Among other acts of violence, members of the 500 Block/C Street Gang sought to attack and kill members of rival Sureño gangs, as well as members of other rival gangs.
The racketeering-related murders and attempted murders to which Ortiz pleaded guilty, took place over a four-day period in December 2010. During the evening of December 18, 2010, in Saint Francis Square in Daly City, Ortiz saw four individuals he suspected of being Sureño gang members in a car. As a result, Ortiz went to his own car, retrieved a gun, and fired at the car carrying the suspected Sureño as it drove away. Three of the occupants were wounded by this attack.
Four days later, on December 22, 2010, Ortiz and several other members of the 500 Block/C Street Gang were looking for rival gang members to attack. As they drove along Eighth Lane in South San Francisco, Ortiz saw a group of young men he suspected of being rival gang members. Ortiz and his co-conspirators got out of their car with guns and fired into the group of suspected rivals, killing three and wounding three; one victim was uninjured.
In addition, Ortiz pleaded guilty to racketeering-related conspiracies based on his participation in the conduct of the affairs of the 500 Block/C Street Gang, and robbing at gunpoint a South San Francisco jewelry store on April 5, 2010, and a Pacifica 7-Eleven convenience store on April 9, 2010. He also pleaded guilty to various charges arising from his efforts to obstruct the investigation of the December 22, 2010 shooting in South San Francisco, including fleeing to Mexico to avoid arrest and prosecution.
“We offer our condolences to the victims’ families. Nothing we can do can erase their pain and sorrow,” stated U.S. Attorney Melinda Haag. “We hope, however, that today’s sentencing brings some measure of closure for them. And today’s sentence sends the clear message that we will work tirelessly with our local, state, and federal law enforcement partners to bring to justice those who would terrorize their communities with senseless and brutal acts of violence.”
“This defendant was a shot caller for a violent criminal enterprise that exacted a heavy toll on several Bay Area communities,” said Clark Settles, special agent in charge for HSI San Francisco. “It’s doubtful today’s sentence will ease the heartache of those who were victimized, but perhaps they can find solace in knowing this defendant’s spree of terror and intimidation has come to an end. HSI is gratified to have played a part in a multi-agency enforcement effort that succeeded in bringing one of the Bay Area’s most dangerous gangs to its knees.”
“The City of South San Francisco is pleased to see that justice has been served in this case and we hope that the families who have been affected by this event can find closure knowing that one of the persons responsible for the murder of their loved ones will be spending the rest of his life in custody. I would also like to thank the members of Homeland Security Investigations and the Daly City Police Department for their assistance to the South San Francisco Police Department in bringing this case to justice,” stated South San Francisco Police Department Chief Michael Massoni.
The sentence was handed down by The Honorable Susan Illston, United States District Court Judge, in San Francisco. Ortiz was given three consecutive life sentences, one for each of the December 22, 2010 murder victims, to be followed by a consecutive life sentence for using a firearm to commit the murders. The Court also imposed an additional consecutive life sentence for the other crimes Ortiz committed, as well as 60 consecutive years imprisonment for using a firearm in relation to those crimes.
Acadia L. Senese and W.S. Wilson Leung are the Assistant United States Attorneys who prosecuted the case, with the assistance of Kevin Costello, Ponly Tu, Marina Ponomarchuk, and Daniel Charlier-Smith. This prosecution is the result of an investigation by the Daly City Police Department and the South San Francisco Police Department, working with Homeland Security Investigations, and with the assistance of the San Mateo County Sheriff’s Office Gang Intelligence and Investigations Unit. Of the nineteen defendants originally charged as a result of this investigation, fourteen have pled guilty to racketeering-related offenses and/or offenses related to the obstruction of justice. The remaining defendants are scheduled to go to trial on March 31, 2014 before The Honorable Susan Illston.
(Ortiz second superseding indictment )
Vegas Clay Calder Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on November 6, 2013, before Senior U.S. District Judge Charles C. Lovell, VEGAS CLAY CALDER, a 38-year-old resident of Helena, was sentenced to a term of:
- ison: 100 months
- ecial Assessment: $100
- ne: $5,000
- pervised Release: 3 years
CALDER was sentenced in connection with his guilty plea to being a felon-in-possession of a firearm.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
On September 1, 2005, CALDER was convicted of criminal possession of dangerous drugs and conspiracy to possess with the intent to distribute methamphetamine and was therefore prohibited from possessing firearms.
On November 2, 2011, Montana Probation and Parole conducted a probation search of CALDER(s Helena residence because CALDER failed to report as required on October 26, 2011. They had received information that he was living in Helena and that he was in possession of several firearms.
During the probation search, officers located a safe in CALDER's bedroom closet. The safe contained three loaded firearms with obliterated serial numbers, $7,700 cash, and drug paraphernalia. The firearms were a Rock Island Armory .45 caliber pistol, a Charter Arms .38 caliber revolver, and a Ruger 9mm pistol.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that he will likely serve all of the time imposed by the court. In the federal system, he does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation, the Montana Probation and Parole, the Missouri River Drug Task Force, the Helena Police Department, the Lewis and Clark Sheriff's Office, and the Montana Division of Criminal Investigation.
U.S. Attorney’s Office Announces Award RecipientsRead the Press Release
New Employees Also Recognized at Courthouse Ceremony
Baltimore, Maryland - Twelve employees of the United States Attorney’s Office and four law enforcement officers were honored today with the Office’s most prestigious awards. At a ceremony held to announce the awards this morning at the U.S. Courthouse in Baltimore, the United States Attorney also welcomed new Assistant U.S. Attorneys and other employees who have joined the Office since last year.
Former United States Attorney, Maryland Court of Appeals Judge Lynne A. Battaglia served as the keynote speaker for the event. Judge Battaglia served as U.S. Attorney from 1993 to 2001.
“The recipients of these awards upheld the highest ethical and professional standards while pursuing justice with exceptional skill and dedication,” commented U.S. Attorney Rod J. Rosenstein.
“The Maryland U.S. Attorney’s Office has earned a reputation for excellence, integrity and achievement over more than two centuries,” U.S. Attorney Rosenstein added. “We are counting on our new employees to live up to that reputation as you work to promote the rule of law, punish criminals, deter crime and protect government property.”
Annual Awards
The following awards were announced for accomplishments over the past year:
Gary Jordan Award
Recipient: Joyce K. McDonaldGary P. Jordan served with distinction for many years as an Assistant U.S. Attorney, as First Assistant from March 29, 1987 until his death on October 25, 1996, and as interim U.S. Attorney in 1993. This is an honorary award presented annually to an Assistant U.S. Attorney for exemplary performance that demonstrates the highest traditions of the office: integrity, ingenuity, dedication to public service and fairness.
Barnet D. Skolnik Award
Recipients: Robert R. Harding
Christopher J. RomanoBarnet D. (Barney) Skolnik was an Assistant U.S. Attorney who led teams that prosecuted numerous white collar criminals and corrupt public officials in the 1970s, including Vice President Spiro T. Agnew. This is an honorary award presented annually to one or more Assistant U.S. Attorneys who demonstrate outstanding professionalism, determination and creativity in a case of unusual public significance.
Employee of the Year Award
Recipient: Kathleen RosierThe Employee of the Year Award recognizes sustained superior performance and outstanding achievements by a non-attorney employee. The award also recognizes the recipient's professionalism, dedication and comprehensive knowledge in their area of expertise.
Pete Twardowicz Award
Recipients: Michael Aiosa
Richard Henry
Daniel Salak
Dougald ThrutchleyThe Pete Twardowicz Award was established in honor of Eugene P. (Pete) Twardowicz, who rendered many years of outstanding service to the U.S. Attorney’s Office as an IRS criminal investigator and a Special Investigator for this Office. This award recognizes law enforcement agents or officers for outstanding cooperation and achievement while working with the U.S. Attorney’s Office on a significant case.
Excellence in Civil Advocacy
Recipient: Joseph R. BaldwinThe U.S. Attorney’s Award for Excellence in Civil Advocacy, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding advocacy in civil litigation.
Excellence in Prosecution of Fraud
Recipients: Jefferson M. Gray
Leo J. WiseThe U.S. Attorney’s Award for Excellence in Prosecution of Fraud, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding work in prosecuting fraud.
Excellence in Prosecution of Violent Crime
Recipient: Stefan D. Cassella
Peter M. NothsteinThe U.S. Attorney’s Award for Excellence in Prosecution of Violent Crime, established in 2007, is presented annually an Assistant U.S. Attorney for outstanding work in prosecuting violent crime.
Excellence in Prosecution of Organized Crime
Recipient: David I. SalemThe U.S. Attorney’s Award for Excellence in Prosecution of Organized Crime, established in 2007, is presented annually to an Assistant U.S. Attorney for outstanding work in prosecuting organized criminal activity.
Excellence in Legal Support
Recipient: Michelle WickerThe U.S. Attorney’s Award for Excellence in Legal Support, established in 2007, is presented annually to one or more non-attorney employees for outstanding work in support of the mission of the U.S. Attorney’s Office.
Outstanding Contributions to a Law Enforcement Initiative
Recipient: Rachel M. YasserThe U.S. Attorney’s Award for Outstanding Contributions to a Law Enforcement Initiative, established in 2007, is presented annually to one or more employees for outstanding work in support of an initiative of the U.S. Attorney’s Office.
New Employees
In addition, the U.S. Attorney welcomed new employees who joined the office last year. Assistant U.S. Attorneys: Leah Bressack, Kenneth Clark, Kelly Hayes, Jakarra Jones, Scott Lemmon, Peter J. Martinez, Nicholas Mitchell, Seema Mittal, David Sharfstein, Thomas Sullivan, Thomas Windom. Support Staff: Jennifer Mills, Angela Ostrum, Ashley Tyson, Damaris Weeks.
U.S. Attorney's Office Collects over $168,500 for Costs of Suppressing “Ten Mile Fire” in Lemhi Co.Read the Press Release
BOISE — U.S. Attorney Wendy J. Olson announced today that her office’s Affirmative Civil Enforcement Unit has resolved a claim for fire suppression costs without filing a lawsuit. The U.S. Attorney’s Office collected $168,596 for costs of suppressing a fire near Ten Mile Creek in Lemhi County, Idaho. The fire, known as the “Ten Mile Fire,” started on July 18, 2012, on land owned by Jeffrey and Paula Kerner, who regularly reside in Wadsworth, Illinois. Mr. Kerner was shooting at an exploding target on a ninety-five degree day when the target blew apart and ignited the fire, which spread and threatened at least two homes and burned 440 acres of federal land.
The United States owns, manages, and administers various parcels of public lands through the Bureau of Land Management and the United States Forest Service. Both agencies suppress uncontrolled wildfires within their jurisdiction pursuant to mutual aid and cooperative agreements. The money collected will reimburse the agencies for funds expended.
“We are pleased to be able to recover more than $168,500 for future fire suppression efforts,” said Olson. “We will continue to make strong efforts to ensure that in appropriate cases private parties who cause fires reimburse the taxpayers for putting out fires on federally managed land.”
Two Pitt County Drug Traffickers Sentenced in Operation “No Quarter”Read the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court United States District Judge Louise W. Flanagan sentenced NIGEL OMAR GRAY, 34, of Greenville, North Carolina, to 131 months of imprisonment and 5 years of supervised and TORRICK JOHNTRELLE RODGERS, 34, of Farmville, North Carolina, to 211 months of imprisonment and 5 years supervised release. GRAY previously pled guilty to conspiracy to distribute and possess with the intent to distribute 1 kilogram or more of heroin and 500 grams or more of cocaine. RODGERS previously pled guilty to conspiracy to distribute 5 kilograms or more of cocaine and 280 grams or more of crack cocaine and three other federal drug charges.
GRAY was arrested on February 16, 2012, after GRAY agreed to purchase one kilogram of heroin and a half kilogram of cocaine from an undercover operative working for the U.S. Drug Enforcement Administration and the Greenville Police Department. The investigation further revealed that GRAY was responsible for distributing an additional 1.5 kilograms of heroin and 28 grams of cocaine since 2000. GRAY faced an enhanced sentence due to his prior convictions which qualified him as a career offender.
RODGERS was arrested on December 3, 2010, after officers found 53 grams of cocaine and 62 grams of crack cocaine during a search of RODGERS’ house pursuant to a search warrant obtained by the Farmville Police Department. The investigation also involved two controlled purchases of crack cocaine from RODGERS. The investigation revealed that from 2008 until his arrest, RODGERS purchased over 2 kilograms of cocaine which he converted into 2.8 kilograms of crack cocaine which he later sold. RODGERS faced an enhanced sentence due to his prior convictions which qualified him as a career offenderThe Organized Crime Drug Enforcement Task Force (OCDETF) Operation "No Quarter" was designed to attack the infrastructure of the Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These DTO's are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation spanned ten years and five North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. Law enforcement officials seized drugs with a street value of $4.6 million, including 127 kilograms of cocaine, 53 pounds of crystal methamphetamine, 160 pounds of marijuana, and 32 grams of heroin. Additionally, $2.2 million in U.S. Currency, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.Investigation of this case was conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico; the Internal Revenue Service - Criminal Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshals Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) - Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff's Office; the Pamlico County Sheriff's Office; the Lenoir County Sheriff's Office; the Craven County Sheriff's Office; the Carteret County Sheriff's Office; the Beaufort County Sheriff's Office; the New Bern Police Department, the Wayne County Sheriff's Office; the Person County Sheriff's Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff's Office, and the Wilson Police Department.
The federal prosecutions were handled by Special Assistant United States Attorneys Glenn Perry and Augustus Willis, IV. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Mr. Willis is a prosecutor with the Carteret, Craven and Pamlico Counties District Attorney’s Office. District Attorneys Kimberly Robb and Scott Thomas have assigned Mr. Perry and Mr. Willis to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their assignments to the United States Attorney’s Office have been made possible by grants funded by the Governor’s Crime Commission.
Two Baltimore Area Men Sentenced to 28 and 29 Years in Prison for Sexually Abusing A Child to Produce Child PornographyRead the Press Release
Baltimore, Maryland – In two unrelated cases, U.S. District Judge Ellen L. Hollander today sentenced Larry James Kerfoot, age 38, of Dundalk, Maryland, and Robert Marzola, age 31, of Essex, Maryland, to 28 and 29 years in prison, respectively, each followed by lifetime supervised release, for sexually abusing a minor to produce child pornography. Judge Hollander also ordered that upon their release from prison, Kerfoot and Marzola must each register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to Kerfoot and Marzola’s plea agreements, in late May and early June 2012, respectively, an undercover Baltimore County detective downloaded child pornography from internet files made available by Kerfoot and Marzola from their homes.
Law enforcement officers executed a search warrant at Kerfoot’s home on June 27, 2012, and seized computers and digital media containing 19 videos and 80 images of child pornography that Kerfoot had received from the internet. Officers also seized a video Kerfoot had produced of a 12 year old girl whom he had coerced to engage in sexually explicit conduct with him on at least five occasions.
Baltimore County Police executed a search warrant at Marzola’s residence on July 19, 2012 and seized a camera, computers and digital media. Investigation revealed that between December 2011 and July 2012, Marzola sexually abused a minor male at his home to produce images of himself and the minor engaged in sexually explicit conduct. Marzola saved the images on his laptop. Marzola told the boy, who was six years old when the abuse began, not to tell anyone about their conduct, which Marzola described to the boy as a game. The images and videos that Marzola had previously produced of the boy were found on his laptop, along with 18 additional videos of children engaged in sexual conduct. According to information presented at today’s sentencing hearing, during the investigation law enforcement identified a second boy that had been sexually abused by Marzola. The second victim, who was five years old at the time of the abuse, told investigators that on at least one occasion he had witnessed the sexual abuse of the first victim, and had been abused himself. As with the first victim, Marzola told the second victim not to tell anyone about what happened.
These cases were 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 "resources" tab on the left of the page.
The Marzola investigation was also part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, FBI, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in these investigations. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the Kerfoot case and Assistant U.S. Attorney Paul Budlow, who prosecuted the Marzola case.
Trio Accused of Using Counterfeit $100 BillsRead the Press Release
Three people were indicted on charges that they conspired to pass counterfeit money totalling more than $10,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are Barbara Hendricks, 20, of Wilmington, Delaware; Jaonta Scarlett, age 25, of Monticello, New York, and Harlin Mack, age 25, of Hempstead, New York.
They are accused of traveling to stores in Northwest Ohio and Southeast Michigan in 2013 and purchasing items at large department stores, including WalMart, Meijer, Home Depot and Toys R Us, with counterfeit $100 bills. They would then return the items at different locations of the same store for genuine U.S. currencty, according to the indictment.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the United States Secret Service, Toledo, Ohio. The case is being handled by Assistant United States Attorney Angelita Cruz Bridges.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Toledo Man Charged with Child Pornography OffensesRead the Press Release
An indictment was filed charging Joshua J. Burchett, 33, of Toledo, with receipt and distribution of child pornography and possession of child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Department of Homeland Security, Cleveland, Ohio. The case is being handled by Assistant United States Attorney Alissa M. Sterling.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Handed Sentences for Lengthy Health Care Fraud ConspiracyRead the Press Release
McALLEN, Texas – Two former clinic staffers and a physician assistant’s wife have all been ordered to prison for conspiracy to defraud Medicare and the Texas Medicaid program in the operation of the Mission Clinic and La Hacienda Family Clinic, announced United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott.
Eliza Lozano Lumbreras, 46, and San Juanita Gallegos Lozano, 57, a couple who operated the Mission Clinic, were in the midst of trial in late 2012, when they opted to enter guilty pleas for their roles in the conspiracy. Manuel Anthony Puig, 48, and Romelia Puig, 45, both of Edinburg, operated La Hacienda Family Clinic near Alton and both previously pleaded guilty in advance of trial.
Today, Chief U.S. District Judge Ricardo H. Hinojosa sentenced Lumbreras and Lozano to 50 and 33 months in federal prison, respectively. In addition to the prison terms, Judge Hinojosa ordered they pay $371,720.16 in restitution to Medicare and Medicaid for the false and fraudulent claims they submitted or caused to be submitted to the health care programs. Romelia Puig was ordered to pay $185,881.75 in restitution and received a sentence of 18 months. All will also serve three-year-terms of supervised release upon completion of their prison sentences. Manuel Puig will be sentenced Tuesday, Nov. 12, 2013 at 2:30 p.m.
Lumbreras and Lozano conspired together and with the others to submit claims to Medicare and Medicaid using the Medicaid provider number of a medical doctor who for years before his death, was unable to practice medicine. In fact, the doctor suffered from Parkinson’s disease and associated Dementia and had been mentally incompetent to practice medicine since September 2001. Although the doctor was unable to practice, they kept the Mission Clinic open for patient care. Lumbreras and Lozano took the doctor to the Mission Clinic and placed him in an office while Lumbreras saw and treated patients. Neither Lumbreras or Lozano were licensed to provide any medical services. The government’s evidence showed that between September 2001 and January 2006, Lumbreras and Lozano submitted bills to the Medicare and Medicaid programs which fraudulently claimed the doctor had provided patients with more than 13,000 medical benefits, items or services when in fact those services had been provided by Lumbreras or not at all. As a result, Medicare and Medicaid paid more than $344,000 on those claims.
Beginning in April 2005, Lumbreras and Lozano also arranged for Manual Puig to operate La Hacienda Family Clinic in Alton and to send bills to Medicare and Medicaid using the provider number of that same unpracticing doctor. Manuel Puig is physician assistant. By state law, a licensed physician is required to supervise and delegate work to a physician assistant and to be responsible for the physician assistant. At his plea hearing, Manuel Puig admitted he joined the ongoing conspiracy, admitting to fraudulently using the Medicaid provider number of that doctor who was unable to practice medicine nor provide any health care benefits, items or services; who did not delegate authority to Manuel Puig to provide any health care benefits, items or services; and who did not supervise Puig’s attempts to provide health care benefits, items or services.
Romelia Puig admitted that between May 2005 and January 2006, she was the biller at La Hacienda Family Clinic and that she submitted or caused to be submitted more than 6,000 claims to Medicare and Medicaid fraudulently using that Texas Medical provider number for which Medicare and Medicaid paid approximately $173,830.56.Lumbreras had access to the doctor’s bank accounts and was able to obtain control over the money Medicare and Medicaid paid for the fraudulent bills submitted from the Mission and La Hacienda clinics, which was divided among Lumbreras, Lozano, their families, Puig and his wife.
Previously released on bond, all were allowed to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges in this case was conducted by the FBI and the Texas Attorney General's Medicaid Fraud Control Unit with assistance from the Mission Police Department. Assistant United States Attorney Casey N. MacDonald and Special Assistant United States Attorney Rex G. Beasley are prosecuting the case.
Tax Credit Refund Conspirator Gets 51 Month SentenceRead the Press Release
PHILADELPHIA – Paul Rawls, 55 of Philadelphia, was sentenced today to 51 months in prison for his role in a tax fraud scheme that sought to bilk the government of over $600,000.
Rawls conspired with three others – including Jonathan Brownlee 29, a Philadelphia tax preparer. Rawls pleaded guilty to conspiracy and one count of filing a false claim on June 25, 2013. Brownlee, who also pleaded guilty, was sentenced on October 9th to 24 months in prison.Christopher Brownlee, 38, and Anthony Foster, 44, also of Philadelphia are the remaining conspirators. Both are awaiting sentencing. The scheme involved filing false tax claims by obtaining and using the personal identifying information of several individuals, including their Social Security numbers, sometimes under false pretenses. The defendants used the information to prepare and file bogus tax returns claiming fraudulent refunds and directed the refunds to be deposited into bank accounts that the conspirators controlled. The tax returns fraudulently reported that the individuals for whom the defendants had prepared the returns, were entitled to receive a $7,500 refundable tax credit under the Housing and Economic Recovery Act of 2008. The returns were false because those individuals had not purchased new homes and thus were not eligible to apply for the refundable tax credit. Some of the individuals---in whose name the returns had been prepared and filed---were not aware that the defendants had used their Social Security numbers for the purpose of filing the false returns. The indictment was the first in the Eastern District of Pennsylvania involving fraud effecting the Housing and Economic Recovery Act of 2008.
In addition to the prison terms, U.S. District Court Judge Berle M. Schiller ordered Rawls and Brownlee to pay restitution in the amount of $197,385.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Office of Inspector General for the United States Social Security Administration. It is being prosecuted by Assistant United States Attorneys Floyd J. Miller and Patrick J. Murray.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Tax Charges Filed Against Bucks County BusinessmanRead the Press Release
Theodore Harris, 51, of Holland, PA, was charged today by information with willful failure to pay over employment taxes, announced United States Attorney Zane David Memeger. Harris owned and operated Clean Tech USA (“Clean Tech”), a janitorial business located in Huntingdon Valley, PA.
According to the information, between January 1, 2007 and January 31, 2008, willfully failed to collect and pay to the IRS approximately $93,000 in employment taxes owed for his employees.
If convicted, Harris faces a maximum possible sentence of five years in prison and restitution to the IRS.
The case was investigated by the Internal Revenue Service Criminal Investigation and is being prosecuted by Assistant United States Attorney David Axelrod.
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Six Indicted on Federal Gun ChargesRead the Press Release
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(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
IN CONNECTION WITH STONEWOOD POLICE BREAK-IN
Greater Harrison DTF Leads Investigation
CLARKSBURG, WEST VIRGINIA — Six Clarksburg residents were indicted by a federal grand jury this week in connection with the recent theft of firearms from a local police department.
United States Attorney William Ihlenfeld, II, announced that a 32-count indictment was returned this week related to a burglary that occurred at the Stonewood Police Department in August of 2013.
JONATHAN CARPENTER, age 25; MICHELLE MCKINNEY, age 29; DOMINIC SUTHERLIN, age 27; JOHN LYNCH, age 43, DENAUL DICKERSON, age 26; and KRISTOPHER COX, age 33, all of Clarksburg, were named in a thirty-two count Indictment. CARPENTER, MCKINNEY, SUTHERLIN and LYNCH were named in one count of “Conspiracy to Violate Federal Firearms Laws” from August 24 to August 26, 2013. As part of the conspiracy, the defendants are charged with the possession, concealment, storing, selling and disposing of firearms that were stolen from the police department.
DICKERSON is named in one count of “Possession of a Firearm by an Unlawful Drug User/Addict and COX is named in one count of “Felon in Possession of a Firearm.”
CARPENTER faces a total of twenty-four counts; MCKINNEY faces a total of eight counts; and SUTHERLIN and LYNCH each face a total of five counts.
In addition to the conspiracy charge, other charges include “Possession, Concealment and Storage of Stolen Firearms,” “Possession of a Firearm by an Unlawful Drug User/Addict,” “Felon in Possession of Firearms,” “Possession of an Unregistered Firearm,” “Making a Materially False Statement in the Acquisition of a Firearm,” and “Sale and Disposal of a Stolen Firearm.” The defendants each face up to five years in prison on the conspiracy charge and up to twenty years in prison on each of the other charges.
In another case investigated by the drug task force, five area residents were named in a 17-count drug indictment. MATTHEW VANHORN, 27, of Stonewood; CHARLES COUNTS, age 42, of Reynoldsville; MEGAN COUNTS, age 24, of Stonewood; MARY WILCOX, age 43, of Stonewood; and, ONDREA KATHERINE COUNTS, age 41, of Reynoldsville, were each charged with various federal drug felonies.
VANHORN, CHARLES COUNTS, MEGAN COUNTS and ONDREA COUNTS are charged with one count of “Conspiracy to Possess with Intent to Distribute MDMA, BZP and Crack Cocaine” from October of 2010 to January of 2012 in Clarksburg. VANHORN faces a total of thirteen counts, CHARLES COUNTS faces eight counts; MEGAN COUNTS faces five counts; WILCOX faces one count; and ONDREA COUNTS faces two counts.
In addition to the conspiracy charge, other charges include “Conspiracy to Possess with Intent to Distribute More than 100 Grams of Heroin”, “Maintaining Drug-Involved Premises”, “Distribution of and Possession with Intent to Distribute MDMA, BZP, Crack Cocaine and Heroin within 1,000 Feet of Oakmound Apartments” and “Possession with Intent Distribute Heroin.”
The U.S. Attorney’s Office is seeking to forfeit $5,121 in United States currency and is seeking a $50,000 money judgment in the case.
The defendants face up to twenty years in prison on the conspiracy charge, up to forty years in prison on the sales and possessions that occurred near a protected location as well as the conspiracy charging more than 100 grams of heroin; and up to 20 years on the premises charges.
These cases will be prosecuted by Criminal Chief Shawn A. Morgan. The Greater Harrison County Drug and Violent Crime Task Force consists of officers & agents from the Bridgeport Police Department; the Clarksburg Police Department; the Drug Enforcement Administration; the West Virginia State Police-Bureau of Criminal Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the United States Postal Inspection Service; and the United States Marshals Service.
The charges contained in the indictments are merely accusations and not evidence of guilt, and each defendant is presumed innocent until and unless proven guilty.
Sentences for November 01 – 07, 2013Read the Press Release
Alfredo Muniga-Fuentes, 43, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on November 7, 2013, for illegal re-entry of a previously deported alien into the United States. Muniga-Fuentes was arrested in Jackson, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Jose Ines Nunez-Matamoros, 42, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on November 7, 2013, for illegal re-entry of a previously deported alien into the United States. Nunez-Matamoros was arrested in Douglas, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
James Donald Gardner, 32, of Evansville, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 6, 2013, for conspiracy to possess with intent to distribute, and to distributing 124.88 grams of methamphetamine. Gardner was arrested in Casper, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $1,000.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Lori Ann Bair, 28, of Newcastle, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 5, 2013, for conspiracy to possess with intent to distribute and to distributing 50-200 grams of methamphetamine. Bair was arrested in Union City, Pennsylvania. She received 33 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Martin Antonio Paredes-Zamorano, 25, of Glenrock, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on November 4, 2013, for being an illegal alien in possession of a firearm. Paredes-Zamorano was arrested in Glenrock, Wyoming. He received ten months imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Vincent A. Apodaca, 26, of Rawlins, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on November 1, 2013, for conspiracy to possess with intent to distribute, and to distributing 50 grams or more of methamphetamine and for possession of a firearm in furtherance of a drug felony. Apodaca was arrested in Cheyenne, Wyoming. He received 120 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $200.00 special assessment and a $1,000.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Romanian National Aurel Cojocaru Extradited from Czech Republic to United States to Face Charges Related to Multimillion Dollar International Cyber Fraud SchemeRead the Press Release
Romanian national Aurel Cojocaru has been extradited to the United States from the Czech Republic to face charges related to his participation in a sophisticated multimillion dollar cyber fraud scheme that targeted consumers on U.S.-based Internet marketplace websites such as eBay.com. Cojocaru specialized in making high-quality fraudulent passports to open U.S. bank accounts used to launder the stolen funds. His extradition followed a coordinated international takedown in December 2012 during which law enforcement officials in Romania, the Czech Republic, the United Kingdom, and Canada, acting at the request of the United States, arrested six Romanian nationals, including Cojocaru. The Czech Republic’s Ministry of Justice granted the extradition request on August 9, 2013. Cojocaru was transported to the Eastern District of New York on November 6, 2013, and was arraigned today before U.S. Magistrate Judge Roanne L. Mann.
In addition to Cojocaru’s extradition, three other defendants – Cristea Mircea, Ion Pieptea, and Nicolae Simion – have been extradited to the United States from Romania, and one defendant, Emil Butoi, was extradited from the United Kingdom. Earlier today, Mircea pleaded guilty to committing wire fraud. Butoi pleaded guilty to committing passport fraud on November 5, 2013. Defendant Nicolae Ghebosila is still engaged in extradition proceedings in Canada. Seven defendants, including Romanian national Nicolae Popescu, are currently fugitives from justice.1
The extradition and the guilty plea were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
As alleged in the complaint and subsequent indictment,2 defendants Cojocaru, Mircea and their co-conspirators saturated Internet marketplace websites, such as eBay, Cars.com, AutoTrader.com, and CycleTrader.com, with detailed advertisements for cars, motorcycles, boats, and other high‑value items generally priced in the $10,000 to $45,000 range. Unbeknownst to the buyers, however, the merchandise did not exist. The so-called sellers corresponded with the victim buyers by email, sending fraudulent certificates of title and other information designed to lure the victims into parting with their money. Sometimes, they pretended to sell cars from nonexistent auto dealerships in the United States and even created phony websites for these fictitious dealerships.
The complaint and indictment further describe how, after the purported Asellers@ reached an agreement with the victim buyers, they would often email them fraudulent invoices purporting to be from Amazon Payments, PayPal, or other online payment services, with wire transfer instructions directing the buyers to send money to American bank accounts. Foreign nationals in the United States, known as Aarrows,@ used fraudulent passports manufactured and supplied by Cojocaru and others as identification to open the bank accounts. Finally, the Aarrows@ would collect the illicit proceeds and send them to co-conspirators in Europe by wire transfer and other methods. Cojocaru produced high-quality fake passports purportedly issued by various European countries as part of this scheme. During one recorded video chat, Cojocaru displayed the tools of his trade – new holograms he had acquired in order to create more authentic-looking passports. In another recorded call, he boasted about his supposed ability to evade the Czech authorities. On December 6, 2012, however, Czech law enforcement officers arrested Cojocaru, and during their search of Cojocaru’s residence outside Prague, the Czech officers and FBI agents found over 180 stolen and fraudulent passports and dozens of identification cards.
According to court filings, the government alleges that the defendant and his coconspirators defrauded their victims of at least $3 million during the course of the conspiracy.
Defendant Cojocaru is charged with conspiracy to commit substantive offenses against the United States, passport fraud, wire fraud, and money laundering. If convicted, the defendant faces a maximum sentence of 20 years’ imprisonment on each of the conspiracy, wire fraud, and money laundering counts, and a maximum sentence of 10 years’ imprisonment on the passport fraud count.
Defendant Mircea faces up to 20 years in prison as the result of his guilty plea to wire fraud. Defendant Butoi faces up to 10 years in prison as the result of his guilty plea to passport fraud.
“Cojocaru’s fraudulent passports were a key part of the criminal infrastructure supporting this sophisticated and global cyber scheme,” stated United States Attorney Lynch. “He operated his fake passport factory with what he thought was impunity. But unlike his passports, our efforts to protect American consumers are genuine and, as demonstrated by Cojocaru’s arrest and extradition and Mircea’s guilty plea today, extend beyond national borders.”
FBI Special Agent in Charge Venizelos stated, “Cojocaru’s extradition means he will finally have to face the American justice system. As alleged, Cojocaru played an integral part in a multi-million dollar cyber scam as the principal passport forger. Using the fake documents Cojocaru created, foreign nationals in the United States could open bank accounts under phony names and launder payments to foreign accounts from duped American buyers. Working with our law enforcement partners abroad, the FBI was able to stop this complex global scam.”
The government of the Czech Republic, particularly the Ministry of Justice, and Interpol provided significant assistance and support during the investigation, arrest, and extradition of the defendant. The Department of Justice’s Office of International Affairs worked with its counterparts in the Czech Republic to effect the extradition, and the U.S. Marshals Service coordinated and transported the defendant to the United States.
The government’s case is being prosecuted by Assistant United States Attorneys Cristina Posa, Nadia Shihata, and Claire Kedeshian of the U.S. Attorney’s Office for the Eastern District of New York, and Trial Attorney Carol Sipperly of the Criminal Division’s Fraud Section.
The Defendants
AUREL COJOCARU
Age: 44
RomanianCRISTEA MIRCEA
Age: 31
RomanianE.D.N.Y. Docket No. 12-CR-0785 (ERK)
_____________________________
1 The FBI’s Wanted Posters for the fugitive defendants are available at http://www.fbi.gov/wanted/cei.
2 The charges in the complaint and indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Real Estate Developer Sentenced to 6 Months of Imprisonment for Soliciting $300,000 in Kickbacks on NYC Housing Preservation & Development Project in the BronxRead the Press Release
Earlier today, in federal court in Brooklyn, New York, Placido Rodriguez, a real estate developer who engaged in a $300,000 kickback scheme while developing the Alexander Avenue Cluster affordable housing project in the Bronx for the New York City Department of Housing Preservation and Development (HPD), was sentenced to a term of imprisonment of 6 months following his conviction for wire fraud conspiracy. In addition, Rodriguez was ordered to pay $98,333 in restitution to the City of New York and pay an additional $98,333 to the federal government as forfeiture.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); Cheryl Garcia, Acting Special Agent in Charge, United States Department of Labor (DOL) Office of Inspector General; and Rose Gill Hearn, Commissioner, New York City Department of Investigation (DOI).
Previously, Rodriguez pleaded guilty to a one-count information charging him with wire fraud conspiracy in connection with a scheme to defraud HPD by collecting kickbacks from a general contractor on HPD affordable housing projects and making HPD pay for the kickbacks by disguising them as construction costs. As detailed in the information and complaint, after Rodriguez and two business partners won the HPD contract to develop the Alexander Avenue Cluster project, they hosted a “pre-bid” meeting with a prospective general contractor who was planning to bid on the project. During that meeting, Rodriguez, in agreement with his business partners, demanded $300,000 from the general contractor in return for their support of his bid. After the general contractor won the bid, he would direct some of the money that he was paid by HPD for his work as a general contractor to Rodriguez and his partners as payments toward the $300,000 kickback. In order to conceal the criminal nature of these payments, Rodriguez and his partners gave the general contractor false invoices from a company they controlled, PRA Building Materials, that were tailored to match the kickback payments. Until the government discovered this corrupt scheme, the general contractor had paid approximately $267,000 in kickbacks, fraudulently billed to HPD, to Rodriguez, and his partners.
“Thousands of New Yorkers turn to HPD for assistance in literally putting a roof over their heads. This defendant lined his pockets with federal housing funds intended to help those families. We will not stop in our pursuit of those who profit by corrupting this vital resource for some of this city’s most vulnerable families. Our ongoing investigation of the New York City affordable housing development sector will continue,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the United States Department of Labor, Office of the Inspector General, for their assistance in this case.
FBI Assistant Director-in-Charge Venizelos stated, “Motivated by greed, the defendant real estate developer constructed a scheme to defraud HPD and took advantage of an opportunity to help the less fortunate in our community. His sentence reinforces the federal government’s unyielding stance that corruption on any level will not be tolerated. The FBI and our law enforcement partners remain vigilant in bringing to justice those who misuse their positions of trust for personal gain.”
DOI Commissioner Rose Gill Hearn said, “This individual and his co-conspirators collected bribes and passed the cost to the taxpayers, in effect stealing money from the City’s affordable housing program. Their corruption was exposed in a joint federal and City investigation. Now as they go to prison, stripped of their stolen money, their scheme looks much less clever than they imagined.”
United States Attorney Lynch thanked the Internal Revenue Service, Criminal Investigation, New York (IRS); the United States Department of Housing and Urban Development (HUD); and the New York City Police Department (NYPD) for their cooperation in this case.
The sentencing proceeding was held before United States District Judge Nina Gershon at the U.S. Courthouse in Brooklyn, New York.
To date, three supervisory officials of HPD, including former HPD Assistant Commissioner Wendell Walters, and six real estate developers and general contractors have pleaded guilty to charges including racketeering conspiracy, bribery, and wire fraud conspiracy in connection with the government’s ongoing investigation of widespread corruption involving affordable housing contracts at HPD. HPD inspection supervisors Michael Provenzano and Luis Adorno were each sentenced to 18 months in prison, and developer Sergio Benitez was sentenced to 22 months. On October 10, 2013, Rodriguez’s partner, Angel Villalona, was sentenced to six months’ imprisonment and ordered to pay $100,000 restitution to the City of New York, and also ordered to forfeit $100,000 to the government. Rodriguez is the fourth defendant sentenced in this ongoing investigation of corruption within the New York City affordable housing development sector.
The government’s case is being prosecuted by Assistant United States Attorneys Cristina M. Posa, Anthony Capozzolo, and Claire Kedeshian.
The Defendant:
PLACIDO RODRIGUEZ
Fort Lee, New Jersey
Age: 66Priest Admits Possessing Photos of Minors Engaged in Sexually Explicit ConductRead the Press Release
PITTSBURGH - A Catholic priest pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
David Dzermejko, 65, Braddock, Pa., pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that on Jan. 11, 2013, Dzermejko, a Catholic priest, possessed photographs in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct. The child pornography was found on various computers and computer-related equipment taken from Dzermejko's former residence in Pittsburgh, Pa., following the execution of a search warrant.
The search warrant was issued on information provided, in part, from Microsoft Corp., that a "Skydrive" user identified by email address [email protected] and screen name "Lord Winchester Cuthbert Thurston VII", had uploaded a sexual image of a prepubescent minor to his Skydrive account. Dzermejko admitted to law enforcement officers executing the warrant that he had been viewing child pornography for in excess of 10 years, had acquired the images on-line from various websites, and had traveled on numerous occasions to Thailand where he engaged in sexual encounters with teen boys, some of whom he thereafter maintained an on-line relationship.
Judge Fischer scheduled sentencing for March 20, 2014, at 11:30 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court continued defendant on bond.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and officers of the Crimes Against Children Task Force conducted the investigation that led to the prosecution of Dzermejko.
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.justice.gov/psc.
Pearland Man Pleads Guilty to Producing and Distributing Child PornographyRead the Press Release
HOUSTON – Travis James McReynolds, 33, of Pearland, has entered a plea of guilty to production and distribution of child pornography, announced United States Attorney Kenneth Magidson.
McReynolds was chatting online with an undercover officer in New Mexico, during which the undercover officer received three images and several videos of child pornography. One of the videos appeared to be a webcam video of a minor female under the age of 13 who is seen lewdly displaying her genitals for the camera and digitally penetrating her genitals and anus. Still images depicting minor girls displaying their genitals were also emailed to the undercover officer. The officer was able to determine the Internet Service Provider and traced the user to McReynold’s address in Pearland. The undercover officer received from McReynolds a short video clip of what turned out to be a young teen girl that McReynolds had produced himself. Based on this, the undercover officer contacted Galveston area law enforcement with the information.
On Oct. 20, 2012, a state search warrant was executed at the defendant?s apartment in Pearland, at which time two laptop computers were seized which revealed child pornography. Upon questioning, McReynolds admitted to obtaining child pornography by chatting with others over the Internet. Forensic analysis resulted in the discovery of approximately 132 images and 35 videos of child pornography on the two computers.
McReynolds entered the plea before U.S. Magistrate Judge Froeschner today. Sentencing is set for Jan. 22, 2013, before U.S. District Judge Gregg Costa, at which time McReynolds faces a minimum of 15 and up to 30 years imprisonment for production as well as up to 20 years on the distribution charge. He also faces a potential fine of $250,000 and up to life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet. McReynolds will remain in custody pending that hearing.The charges against McReynolds were the result of an investigation conducted by the Galveston and Albuquerque offices of Homeland Security Investigations and the Pearland Police Department as part of the Houston Metro Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Robert Stabe, 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."
Northern California Real Estate Investor Agrees to Plead Guilty to Bid Rigging at Public Foreclosure AuctionsRead the Press Release
A Northern California real estate investor has agreed to plead guilty for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed today in the U.S. District Court for the Northern District of California in Oakland against Chuokee “Joseph” Bo of Pleasanton, Calif.
Bo is the 38th individual to plead guilty or agree to plead guilty as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, Bo conspired with others not to bid against one another, but instead designated a winning bidder to obtain selected properties at public real estate foreclosure auctions in Alameda County, Calif. Bo was also charged with conspiring to use the mail to carry out a scheme to fraudulently acquire title to selected Alameda County properties sold at public auctions, to make and receive payoffs, and to divert money to co-conspirators that would have otherwise gone to mortgage holders and others by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held. Bo is charged with participating in the conspiracies beginning as early as August 2009 and continuing until about October 2010.
“Today’s plea agreement is the latest step in the Antitrust Division’s efforts to preserve open competition in local markets,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The division remains committed to prosecuting individuals who subvert the competitive process for their own profit.”
The department said that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at Alameda County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
"This is another example of justice being served in preserving the fairness of public real estate foreclosure auctions as well as the FBI’s commitment in investigating those who take advantage of a competitive marketplace,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “Criminal activity like this takes place in our communities and we continue to rely on the public’s help in seeking those who cheat the system.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
Today’s charges are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa, and Alameda counties, Calif. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-436-6660, visit www.justice.gov/atr/contact/newcase.html or call the FBI tip line at 415-553-7400.
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 is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
**The fraud charge(s) referenced in this press release were subsequently dismissed on the government’s motion.**
North Carolina Paving Contractor Pleads Guilty to Tax and Bank FraudRead the Press Release
Tommy Edward Clack pleaded guilty in federal court in Greensboro, N.C., to one count of willfully filing a false federal income tax return and one count of knowingly making a false statement to a federally-insured bank in order to obtain a mortgage loan, the Justice Department and the Internal Revenue Service (IRS) announced today.
According to filings with the court, for approximately the past 10 years Clack has been an itinerant, self-employed paving contractor doing business in North Carolina, South Carolina, Maryland, and Florida. Clack operated under several different business names, and he changed the names of his paving business frequently in order to avoid scrutiny by state and federal law enforcement agencies. As a result of his business practices, over the years Clack was charged with multiple state criminal violations in Maryland, North Carolina, South Carolina and Florida. Since June 2010, Clack has been under an injunction banning him from operating as a driveway paving contractor in North Carolina. He is also subject to a cease-and-desist order in Maryland banning him from various fraudulent practices.
According to court documents, Clack significantly underreported the income from his paving business on his tax returns. From 2004 to 2007, Clack earned gross income of over $5.7 million, but reported only a fraction of it to the IRS. Clack underreported his income by approximately $294,829 in 2004; $1,178,822 in 2005; $1,868,556 in 2006 and $2,428,710 in 2007. Clack’s returns were prepared by an accountant, but Clack knowingly provided her with false information upon which to base Clack’s returns, and signed his returns knowing that they significantly understated his income. Altogether, as a result of these false returns Clack underpaid his taxes during this period by approximately $1,350,597. To conceal his tax fraud, Clack employed a number of strategies: he did not maintain books and records, dealt extensively in cash, paid his employees in cash and structured currency transactions with his bank in amounts designed to evade the bank’s requirement to file Currency Transaction Reports with the IRS.
Court documents state that in 2003, Clack submitted a mortgage loan application in the name of his then-wife to a bank in Greensboro. The application sought a $640,000 loan to finance the purchase of a $1.2 million home. As part of the loan application, Clack provided the bank with a 2002 tax return in his wife’s name, which reported adjusted gross income of $372,748 and claimed total tax liability of $127,745. Clack represented that this tax return had been filed with the IRS, when in fact it had not been. In fact, Clack and his then-wife had filed a 2002 joint federal income tax return which claimed that the couple had adjusted gross income of $17,656 and total tax liability of $2,685. Had the bank known of the discrepancy, they would not have issued the loan. Clack ultimately defaulted on the loan, and the bank suffered a loss after foreclosing the collateral.
For the false tax return charge, Clack faces a maximum of three years in prison, one year of supervised release and a maximum fine of $250,000. Clack faces a maximum of 30 years in prison, five years of supervised release and a maximum fine of $1,000,000 for the bank fraud count. Sentencing is scheduled for March 7, 2014.
The case was investigated by special agents of the IRS - Criminal Investigation, with assistance from the North Carolina State Bureau of Investigation. It is being prosecuted by Trial Attorney Jonathan Marx of the Justice Department’s Tax Division.
New Hampshire Man Charged with Passing Fraudulent Documents in Connection with His Sale of Black Rhinoceros Horns for $35,000Read the Press Release
Ari B. Goldenberg, 46, of Milton, N.H., was charged today with trafficking in and making a false record for illegally selling a black rhinoceros head mount to an undercover U.S. Fish & Wildlife Service (FWS) special agent.
The indictment is a result of a nationwide effort led by the FWS and the Justice Department to investigate and prosecute those involved in the black market trade of endangered rhinoceros horns.
The indictment alleges that Goldenberg, seeking to profit from the sale of a black rhinoceros head mount he acquired for less than $1,000, illegally sold the mount to an undercover special agent of the FWS Office of Law Enforcement for $35,000. The indictment also charges Goldenberg with providing the undercover agent with a falsified receipt for the sale of the mount.
Rhinoceros are a herbivorous species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law, and all black rhinoceros species are endangered. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by more than 175 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Nevertheless, the demand for rhinoceros horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on ornamental carvings, good luck charms or alleged medicinal purposes, leading to a decimation of the global rhinoceros population. In China, there is a tradition dating back centuries of intricately carved rhinoceros horn cups. Drinking from such a cup was believed to bring good health, and such carvings are highly prized by collectors. As a result of this demand, rhino populations have declined by more than 90 percent since 1970. South Africa, for example, has witnessed a rapid escalation in poaching of live animals, rising from 13 in 2007 to more than 618 in 2012.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case was investigated by the FWS Office of Law Enforcement and is being prosecuted by the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.New Hampshire Man Arrested, Charged in New Jersey for Illegal Weapons Sales on Underground Online MarketplaceRead the Press Release
NEWARK, N.J. B Federal agents arrested a New Hampshire man in Hampton, N.H., on charges that he illegally trafficked firearms through New Jersey on an underground, Internet-based marketplace known as “Black Market Reloaded,” New Jersey U.S. Attorney Paul J. Fishman announced.
Matthew Crisafi, 38, of Hampton, was arrested by special agents from U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), on a federal criminal complaint charging him with three counts: the unlicensed sale of firearms; smuggling of firearms from the United States to an overseas destination; and conspiring to commit money laundering in connection with firearms trafficking activities.
The defendant, who is the owner of an independent trucking company in New Hampshire, is scheduled for an initial appearance and bail hearing this afternoon before U.S. Magistrate Judge Daniel Lynch, in Concord, N.H., federal court. He will be brought to New Jersey to appear in Newark federal court on a date to be determined.
“International arms trading and other crimes are just as dangerous whether deals are made in person or through anonymous computer networks and currencies,” said U.S. Attorney Fishman. “Online black market sellers should take note: we aren’t just targeting the administrators of these sites, which can pop up again elsewhere. If you buy or sell illegal goods on an underground marketplace, law enforcement is watching.”
According to the criminal complaint unsealed today: In April 2013, HSI special agents conducted an investigation of illicit sales activity on Black Market Reloaded (BMR). The website provides a platform for vendors and buyers to conduct anonymous online transactions involving the sale of a variety of illegal goods, including firearms, ammunition, explosives, narcotics and counterfeit items. Unlike mainstream e-commerce websites, BMR is only accessible via the Tor network – a special computer network designed to enable users to conceal their identities and locations. Transactions on BMR are conducted using Bitcoin, an anonymous, decentralized form of electronic currency that only exists online.
During the investigation, HSI learned that Crisafi maintained a seller’s profile on BMR to advertise the illegal sale of firearms and ammunition. Over a period of approximately three months, Crisafi negotiated with an undercover officer – whom he believed was an international purchaser of firearms – to sell a number of semi-automatic handguns and rifles, including a Smith & Wesson Model Bodyguard .380 caliber semi-automatic handgun; a Glock Model 26, 9mm caliber semi-automatic handgun; a KelTec Model P32, .32 caliber semi-automatic handgun; a NORINCO SKS 7.62 semi-automatic rifle; an AR-15 Bushmaster semi-automatic rifle and others. In all, Crisafi sold multiple firearms to the undercover officer, valued by law enforcement to be worth more than $11,000 on the black market.
Crisafi shipped the firearms in packages through the U.S. Postal Service. Several of the weapons Crisafi sold were sent to the undercover officer through a location in New Jersey, where they were seized by law enforcement officials.
“Today’s arrest is a testament to the strong working relationships HSI has forged with our numerous law enforcement partners,” said HSI Newark Special Agent in Charge Andrew McLees. “People who think they can hide behind a veil of an “underground” website to buy and sell weapons illegally are mistaken – HSI will use all of our collective resources to track you down and bring you to justice.”
U.S. Attorney Fishman credited special agents of HSI, under the direction of Special Agent in Charge McLees in Newark and Special Agent in Charge Bruce M. Foucart in Boston with leading the investigation; as well as postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria Kelokates; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge George P. Belsky; the U.S. Attorney’s Office for the District of New Hampshire, under the direction of John P. Kacavas; and officers from the Hampton Police Department in Hampton, N.H., under the direction of Police Chief Jamie Sullivan, for their important contributions.
The prosecution is being handled by the U.S. Attorney’s Office National Security Unit in Newark.The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
13-430Crisafi, Matthew Complaint
Nampa Man Pleads Guilty to Distributing MethRead the Press Release
BOISE – Timothy Alan Butterbaugh, 46, of Nampa, Idaho, pleaded guilty today in federal court to one count of distributing methamphetamine, U.S. Attorney Wendy J. Olson announced. Butterbaugh was indicted by a federal grand jury in Boise on September 10, 2013, charged with four counts of distributing methamphetamine.
According to the plea agreement, an individual working with law enforcement provided information that Butterbaugh was selling methamphetamine. On June 27, 2013, the individual contacted Butterbaugh to arrange to purchase a “quarter.” Later that day, at an agreed upon location in Nampa, Butterbaugh sold the individual one-quarter ounce of methamphetamine for $400. Following the meeting, the individual gave the methamphetamine to law enforcement agents who had conducted surveillance before and during the transaction. Testing by the Drug Enforcement Administration laboratory determined the substance to be 98.8% pure and contained 6.8 grams of actual methamphetamine. Butterbaugh was arrested at his residence on August 28, 2013, during execution of a search warrant.
Butterbaugh faces up to 40 years in prison, a maximum fine of $5 million, and at least four years of supervised release.
Sentencing is set for January 23, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force, which is comprised of federal, state and local agencies, including the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, Canyon County Sheriff’s Office, and Idaho Department of Correction.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Muskegon Landlord Convicted of Arson, Insurance Fraud, and Tax Fraud Sent to Federal Prison for 55 YearsRead the Press Release
GRAND RAPIDS, MICHIGAN – Gerald Eugene Singer, 74, of Muskegon, Michigan, was sentenced to 55 years in prison, U.S. Attorney Patrick Miles announced today. In addition to the prison terms, United States District Judge Gordon J. Quist also ordered Singer to pay $653,140 in restitution to the victims of his crimes.
Singer was convicted by a jury in March 2013 of two counts of arson, three counts of using fire to commit mail fraud, one count of mail fraud, and five counts of tax fraud after a 16-day trial at which nearly 100 witnesses testified. The jury found that Singer committed arson and used fire to commit mail fraud at the following properties:
1292 E. Broadway, Norton Shores, MI, a commercial building formerly known as “The Fair” fabric store, which was insured by Hartford Insurance and Westport Insurance (destroyed by fire on June 20, 1999);
250 Myrtle St., Muskegon, MI, an investment/rental property which was insured by Foremost Insurance (destroyed by fire on November 9, 2006); and
2608-2614 7th Street, Muskegon Heights, MI, a four-unit apartment complex insured by Farm Bureau General Insurance Company (destroyed by fire on August 28, 2007).
The mail fraud charge included those properties as well as fires at six additional properties and two attempted fires at properties in Muskegon Heights, MI.
The jury also convicted Singer of filing a false tax-related document each year between 2005 and 2008 for failing to disclose to the IRS approximately $500,000 in insurance proceeds from the fire at “The Fair” fabric store in Norton Shores. Singer also was convicted of obstructing the administration of tax laws by causing false individual income tax returns for tax years 2005 through 2008 to be filed; making false and misleading statements to IRS officials about his individual income tax returns; misleading his tax preparer by withholding information; concealing income from the IRS by means of “structuring” the payout of insurance funds; and causing the filing of false home buyer tax credit claims against the IRS.
U.S. Attorney Miles said, “Arson endangers the lives of residents, neighbors and first responders, it raises the cost of insurance for everyone, and it harms neighborhoods. Today, Mr. Singer received the bitter fruits of his continual disregard for others. He learned that arson and fraud do not pay. He will be spending a long time where he belongs, which is in prison.”
Daryl McCrary, Acting Special Agent in Charge of the Detroit office of the Bureau of Alcohol, Tobacco, Firearms & Explosives (“ATF”) and Carolyn Weber, Acting Special Agent in Charge of the Detroit office of the Internal Revenue Service-Criminal Investigation (“IRS-CI”), joined in the announcement of the sentences.
ATF Acting Special Agent in Charge Daryl McCrary said, “This complex multi-layered, multi-agency investigation further displays that arson (arson for profit) crimes are not victimless fires, they result in the loss of income and the loss of property. Mr. Singer’s wanton criminal acts have altered and endangered the lives of many citizens in the community, including the fire fighters who responded to these fires,” said McCrary. “This sentence will not heal the individuals affected, but we hope it will deter others from committing heinous acts of arson in the future.”
IRS Criminal Investigation Acting Special Agent in Charge, Carolyn Weber, stated, “Gerald Singer lined his pockets with the proceeds of false insurance claims. IRS will vigorously pursue those who seek to profit from illegal activities.”
Under federal sentencing laws, the Court was required to sentence Singer to at least 5 years and up to 20 years in prison for the arson convictions. The law also mandated that Singer receive a consecutive minimum sentence of 10 years for the first conviction of using fire to commit mail fraud and two additional mandatory consecutive minimum sentences of 20 years for the second and third convictions for using fire to commit mail fraud.
This case was investigated by the Grand Rapids offices of the ATF and IRS-CI, and the Muskegon Heights Fire Department. Assistant U.S. Attorneys Michael MacDonald and Christopher O’Connor prosecuted the case..
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Mexican National Living Illegally in Denver Caught with over 50 Kilograms of MarijuanaRead the Press Release
DENVER – Joel Rodriguez Padilla, a/k/a Isaias Rodriguez Padilla, age 37, a Mexican national living in Denver, was indicted by a federal grand jury this week on immigration and drug charges, United States Attorney John Walsh and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar Kibble announced. Padilla has been in custody since his arrest on a Criminal Complaint on October 8, 2013. The indictment was returned by a federal grand jury in Denver on November 5, 2013. Padilla appeared in U.S. District Court in Denver this morning before a Magistrate Judge, where he was arraigned on the indictment. A tentative trial date of January 13, 2014 has been set before U.S. District Court Judge William J. Martinez.
According to court documents, including the indictment and the affidavit in support of the original Criminal Complaint, on October 9, 2013, Padilla, a Mexican national, did unlawfully, knowingly and intentionally possess with intent to distribute 50 or more kilograms of marijuana. Further, on that same date, Padilla, an alien, was found in the United States after having been denied admission, deported and removed from the United States. Padilla faces an enhanced penalty because his deportation was subsequent to a conviction for an aggravated felony offense.
The indictment includes an asset forfeiture allegation. Upon conviction, Padilla could be ordered to forfeit the proceeds from his criminal conduct, including $60,365 in currency seized from his Denver home. Padilla also faces the forfeiture of his home, where the money as well as scores of kilograms of marijuana were found.
The investigation revealed that Padilla had been previously involved in and prosecuted for the trafficking 1.5 pounds of methamphetamine in October 2000. Agents also found that Padilla had been deported on a number of different occasions.
“Trafficking in marijuana for illicit sale – here, by a previously deported foreign national – is a serious federal crime,” said U.S. Attorney John Walsh. “This case falls squarely within guidance provided by the Department of Justice for federal prosecution of marijuana offenses.”
“Illegal re-entry after deportation and possession with the intent to distribute narcotics are serious federal violations,” said Kumar C. Kibble, special agent in charge of HSI Denver. “Our HSI special agents routinely partner with law enforcement nationally to help identify, locate, and ultimately pursue prosecution against these individuals. In many cases, these re-entry convictions lead to significantly enhanced prison sentences that help to deter further criminal activity.”
If convicted, Padilla faces not more than 20 years in federal prison, and up to a $250,000 fine for possession with intent to distribute more than 50 kilograms of marijuana. If convicted of illegal reentry of a deported alien subsequent to an aggravated felony conviction, Padilla faces not more than 20 years in federal prison, and up to a $250,000 fine.
This case was investigated by HSI, the U.S. Forest Service, the Adams County Sheriff’s Office, the North Metro Task Force, and the Westminster Police Department.
The defendant is being prosecuted by Special Assistant U.S. Attorneys Kirsten Sinclair and Geoffrey Rieman.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty.
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Mexican National Charged with Stealing Identification DocumentsRead the Press Release
Enrique Torres, 43, of Philadelphia, Pennsylvania was charged today by Indictment with two counts of knowingly transferring identification documents of the United States, two counts of knowingly selling Social Security cards, and one count of unlawful reentry after deportation, announced United States Attorney Zane David Memeger.
The indictment alleges that the defendant, a Mexican national who previously was deported from the United States, sold identification documents, including two Social Security cards and one Legal Permanent Resident card.
If convicted the defendant faces a maximum possible sentence of 60 years in prison and a $1.25 million fine.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Karen M. Klotz.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Mexican Citizen Sentenced for Illegal ReentryRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Abelardo Antunez-Gama, 46, of Mexico, was sentenced by U.S. District Court Judge Richard T. Haik to 20 months in prison for illegal reentry with deportation upon service of sentence and no supervised release to follow. Antunez-Gama pleaded guilty August 8, 2013.
According to evidence presented at the guilty plea, local law enforcement found Antunez-Gama after conducting a traffic stop January 23, 2013 on Interstate 10, near Exit 36, east of Lake Charles, La. He was handed over to U.S. Border Patrol agents who discovered he had reentered the United States illegally three times previously, and had prior drug and firearm convictions. The defendant was convicted on March 2001 for possessing a firearm during commission of a drug crime and was deported in May 2001. He was found to be in the Unites States again in 2011 and was removed in May 2011. He was arrested near the Mexican border town of Del Rio, Texas, on June 9, 2011, was convicted on illegal reentry charges on November 17, 2011, served time in prison for the offense, and then was removed from the United States again in September of 2012.The U.S. Border Patrol and Homeland Security conducted the investigation. Assistant U.S. Attorney Myers P. Namie prosecuted the case.
Men Indicted on Fraud, Identity Theft, and Conspiracy ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo has returned a 68-count indictment charging Brian Smith, 40, of Buffalo, N.Y., with defrauding various individuals, companies, and financial institutions, resulting in a total financial loss of over $1,000,000. The charges carry a maximum penalty of 30 years in prison, a fine of $1,000,000 or both. Brian Smith is also charged with aggravated identity theft, which carries a penalty of two years in prison. Kelly Atkinson, 30, of Wake Forest, North Carolina, was also indicted on 13 counts, related to his role in some of the schemes to defraud.
Assistant U.S. Attorney Maura K. O'Donnell, who is handling the case, stated that according to the indictment, Smith caused fraudulent loan applications and supporting documentation to be submitted to banks, credit unions, peer to peer lenders, and other business entities. In addition, Smith is accused of defrauding individuals out of funds under the guise of investing their money in real estate, when, in fact, he personally spent the money and did not purchase real estate. The indictment also charges Smith with using stolen identifying information from an individual to open a credit card and to obtain a vehicle.
Defendant Atkinson is charged with causing fraudulent loan applications and supporting documentation to be submitted to a credit union and another business for the purpose of obtaining loans.
The Indictment is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig and Special Agents from the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Mark Lawrence Wilson Arraigned and Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on November 7, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, MARK LAWRENCE WILSON, a 45-year-old resident of Big Fork, was arraigned and pled guilty to unlawful drug user in possession of firearms and ammunition. Sentencing is set for February 20, 2014.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
On November 8, 2012, WILSON, an unlawful drug user of marijuana and cocaine, possessed 12 firearms and more than 5,200 rounds of ammunition in Flathead County.
On November 8, 2012, law enforcement executed search warrants on WILSON's car and Flathead County residence as the result of a four-month investigation regarding WILSON's use and distribution of cocaine.
Law enforcement located two handguns and a shotgun during the search warrant execution on WILSON's 2003 Chevy Tahoe that WILSON was driving at the time of his arrest. One of those handguns was a FN 5.7 x 28. The FN handgun appeared to be the same gun that WILSON brandished during a cocaine sale of two grams for $200 on November 2, 2012. Law enforcement also located three FN 5.7 x 28 magazines. The magazines contained 44 rounds of FN 5.7 x 28 ammunition.
Law enforcement located nine firearms; 5,235 rounds of ammunition, two bags of marijuana, suspected cocaine and LSD, one digital scale, and $1,550 cash from WILSON's Flathead County residence.
Law enforcement recovered more than 5,200 rounds of coordinating ammunition at WILSON's Flathead County residence. The types of ammunition recovered include shotgun shells, .45 caliber ammunition, 9mm ammunition, 7.62 x 39 ammunition, .223 caliber ammunition, .300 win mag ammunition, .22 caliber ammunition, and .357 caliber ammunition. There were more than 3,300 rounds of the 7.62 x 39 and the .223 caliber ammunition. Law enforcement also recovered three, 30-round .223 magazines and three, AK 7.62 x 39, 30-round magazines.
During this time and before, WILSON regularly used marijuana and cocaine. Witnesses reported to law enforcement that WILSON regularly sold and used these substances.
WILSON faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the Northwest Drug Task Force and the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Man Charged with Selling Counterfeit CurrencyRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Novel Rogers, 25, of Buffalo, N.Y., was charged by criminal complaint with making, selling, and delivering fraudulent U.S. currency. The charges carry a maximum penalty of 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Maura K. O'Donnell, who is handling the case, stated that according to complaint, Rogers sold counterfeit currency to a cooperating witness on several occasions. A search was later conducted at Rogers’ residence where law enforcement officers found that the defendant was in possession of over $16,000 in counterfeit bills which he had produced.
The criminal complaint is the result of an investigation by Special Agents from the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Luz M. Vega, Accountant, Found Guilty of Health Care FraudRead the Press Release
SAN JUAN, Puerto Rico –Today, after 15 days of jury trial before U.S. District Court Judge Gustavo A. Gelpi, Luz M. Vega, Certified Public Accountant, president of Preferred Medical Equipment (PME) and professor at the Interamerican University in Arecibo, PR, was found guilty of conspiracy to commit health care fraud, 24 counts of health care fraud, three counts of Aggravated Identity Theft, 28 counts of payments of kickbacks, and two charges of money laundering, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
The health care fraud scheme involved Luz M. Vega, Doctor Francisco Garrastegui, Lissette Acevedo, Luisa Nieves and María Elisa Pérez. According to the sixty-count indictment, from on or about April 2010, until on or about March 2011, PME submitted false claims to Medicare, seeking reimbursement for not medically necessary Durable Medical Equipment including: power wheelchairs, power pressure reducing air mattresses, wheelchair accessories, lumbar-sacral orthosis, knee orthosis and hospital beds. PME submitted at least 95 fraudulent claims totaling approximately $210,223.47, causing Medicare to disburse approximately $107,876.73. Defendants Garrastegui, Acevedo and Nieves pled guilty previously. The government will forfeit $107,876.73 and one bank account.
“As part of the nation’s health care system, Medicare serves vulnerable populations,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “Today’s verdict shows that we will not tolerate criminals who engage in fraudulent schemes which deplete the Medicare program of funds destined for our elderly population, in order to enrich themselves.”The case was investigated by the U.S. Department of Health and Human Services, Office of the Inspector General, with the assistance of the U.S. Secret Service and the Federal Bureau of Investigation. The prosecution was assigned to Assistant U.S. Attorney Héctor Ramírez-Carbó and Special Assistant US Attorney Wallace Bustelo. The defendant could face a possible sentence of up to 10 years in prison for the health care fraud, and a 24 months statutory term for the aggravated identity theft charges consecutive to any other counts of conviction.
Lincoln County Man Sentenced on Federal Child Pornography ChargesRead the Press Release
St. Louis, MO – MATTHEW M. HANSEN was sentenced to 20 years in prison on charges of attempting to entice minor boys to engage in sexually explicit conduct for him to videotape between 2007 and 2012.
According to court documents, Hansen was an elementary teacher at the Fort Zumwalt School District, a volunteer fireman and a camp counselor for the school district’s fifth grade camps. Investigation revealed that Hansen video recorded over 75 minor boys under the age of twelve undressing to take showers at the camps.
Hansen, Winfield, Missouri, pled guilty in July to eight felony counts of attempted production of child pornography. He appeared today in St. Louis before United States District Judge Jean C. Hamilton for sentencing.
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and St. Charles County Cyber Crime Unit. Assistant United States Attorney Rob Livergood handled the case for the U.S. Attorney's Office.
Last Man Sentenced to 6 Years in federal prison for role in Sarasota Mortgage fraud conspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazzara sentenced J. Patrick Brester (41, Sarasota) yesterday to six years in federal prison for conspiring to commit wire fraud affecting a financial institution, and committing wire fraud affecting a financial institution. The court also ordered Brester to forfeit $1,995,800, which is traceable to proceeds of the offense. Brester was found guilty on June 4, 2013.
According to court documents and evidence presented at trial, Brester conspired with Michael Chadwick, Matthew Landsman, Joshua Unger, and others to engage in fraudulent cash-back-to-buyer mortgage transactions involving the 2007 purchase and sale of condominiums at Vintage Grand, a large condominium complex in Sarasota, Florida. Each fraudulent transaction involved Brester first purchasing the unit from the development company, Sarasota 432, LLC, and then simultaneously flipping it to Michael Chadwick. Brester and his co-conspirators deceived mortgage lenders about the true nature of the transactions by inflating the purchase prices of the properties, and ultimately the amount lent by the mortgage lenders, to include fees that were falsely described as “management fees" payable to shell corporations under their control.
In truth, the so-called “management fees” were actually the method by which Brester and his co-conspirators funneled cash back to themselves without the lenders’ knowledge. In furtherance of the conspiracy, Brester and his co-conspirators caused interstate wire transfers of the proceeds of the loans obtained from the victim mortgage lenders into bank accounts held in the name of shell companies, including IGS, Inc. and Landwick I, LLC. Evidence presented at trial showed that Brester made over $550,000 from his role in the conspiracy. Mortgage lenders incurred a loss of over $1.2 million from the conspiracy.
For his role in the scheme, Chadwick was sentenced to 12 months and one day in prison, on October 19, 2010. Landsman was sentenced to 2 years’ imprisonment on August 19, 2011. Unger was ordered to serve a 15 month prison term on June 27, 2013. All four were ordered to pay restitution to the financial institutions in the amount of $1,266,156.
This case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorneys Amanda L. Riedel and Matthew J. Mueller.
Lakeland man found guilty of trafficking in methamphetamineRead the Press Release
Tampa, Florida – Acting United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Ricky Muoio (Lakeland) guilty of distribution of methamphetamine and possession with intent to distribute methamphetamine. He faces a maximum penalty of life imprisonment in federal prison. A sentencing hearing is scheduled for January 27, 2014.
Muoio was indicted on May 1, 2013.
According to testimony and evidence presented at trial, on April 11, 2013, a confidential source (CS) working with the Drug Enforcement Administration (DEA) purchased two ounces of methamphetamine, for $3,000, from Muoio, at his Lakeland residence on Creekwood Run. On April 24, 2013, DEA agents executed a federal search warrant at the residence. In one of the bedrooms, they found and seized a total of approximately 1.5 ounces of methamphetamine, $3,500 in cash, and a digital scale.
This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Kathy J.M. Peluso.