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Wednesday 11 September 2013
Joseph C. Kupfer Sentenced to Ten Years in Prison for Theft of Federal “Help America Vote Act” (Hava) Funds and Tax EvasionRead the Press Release
ALBUQUERQUE – This afternoon U.S. District Judge William P. Johnson sentenced Joseph C. Kupfer, 50, of Rio Rancho, N.M., to ten years in federal prison followed by three years of supervised release for his convictions for conspiracy, theft of government property and tax evasion. Kupfer also was ordered to pay $746,375 in restitution to the State of New Mexico and $288,339 in restitution to the IRS. Kupfer is to pay the restitution payment to the State of New Mexico jointly with co-defendant Armando C. Gutierrez, 65, of Corpus Christi, and the restitution payment to the IRS jointly with his wife and co-defendant Elizabeth D. Kupfer, 51. Kupfer also was ordered to forfeit $746,375 to the United States.
Kupfer’s sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, New Mexico Attorney General Gary K. King, Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation, and Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI.
This case was initiated in Dec. 2010, by the filing of a three-count indictment charging Kupfer and his wife with failing to report $768,333 in taxable income during tax years 2004 through 2006, and evading $286,175 in federal taxes. An eleven-count superseding indictment was filed in July 2011, which added Gutierrez as a defendant and five counts charging Kupfer and Gutierrez with conspiracy and theft of government property relating to federal HAVA funds administered by former New Mexico Secretary of State (NMSOS) Rebecca Vigil-Giron. The superseding indictment also charged Gutierrez with two counts of obstruction of justice relating to a federal audit and investigation into the misuse of federal HAVA funds and one count of laundering unlawfully obtained proceeds. At the time of the events described in the superseding indictment, Kupfer and Gutierrez were providing consulting services to the NMSOS under HAVA contracts, and Mrs. Kupfer was an employee of the New Mexico Attorney General’s Office (NMAGO) who had been detailed to work for the NMSOS.
The court severed the tax evasion counts from the other counts in the superseding indictment for purposes of trial, and scheduled separate trials for the Kupfers on the three tax evasion charges (the tax trial), and for Kupfer and Gutierrez on the conspiracy, theft, obstruction of justice and money laundering charges (the HAVA trial).
The tax trial began on Aug. 13, 2012 and ended on Aug. 17, 2012, when the jury returned a guilty verdict against the Kupfers on all three tax evasion charges. The evidence established that, during the years 2004 through 2006, Kupfer received income including federal HAVA funds, from Kupfer Consulting (KC), a business owned and operated by Kupfer, and the Kupfers reported income from KC in their joint personal tax returns. During those years, the Kupfers received $1,304,421 in revenue from KC but reported only $502,541 in their tax returns. By concealing approximately $768,333 in income, the Kupfers avoided paying taxes on that money.
The HAVA trial began on Jan. 22, 2012 and ended on Jan. 31, 2013, when the jury returned guilty verdicts against Kupfer and Gutierrez on the conspiracy and theft of government property charges, and against Gutierrez on the obstruction of justice and money laundering charges. The evidence established that, between April 2003 and Dec. 2006, the NMSOS administered almost $20 million in federal HAVA funds, which were designated for voter education, increasing voter registration, and meeting new standards for election administration and voting systems, through a number of contracts. The contracts included a multi-million dollar contract for voting-related advertising awarded to A. Gutierrez and Associates, Inc. (AGA), which was owned and operated by Gutierrez, and three small contracts for increasing voting accessibility for the disabled that were awarded to KC, Kupfer’s business.
According to the evidence, Gutierrez and Kupfer conspired to defraud the United States by stealing federal HAVA funds and converting the funds to their own use. Between Sept. 2004 and Oct. 2006, AGA received a total of $6,271,810 in federal HAVA funds from the State of New Mexico but Gutierrez submitted documentation supporting only $3,385,151 in services and costs, resulting in an overpayment of $2,500,483 to which AGA was not entitled. In addition to the three small contracts totaling $70,000 which were awarded to KC by the NMSOS, AGA made nine payments totaling $746,375 in federal HAVA funds to Kupfer between Oct. 2004 and Nov. 2006, which far exceeded the value of any work that Kupfer ever actually performed for AGA under the HAVA contract.
In early 2007, the Election Assistance Commission began an audit into the use of federal HAVA funds by the NMSOS. The AGA HAVA contract immediately became the primary focus of the audit because AGA could not provide documentation to support the federal HAVA funds AGA received. In an effort to provide documentation for the federal HAVA funds AGA received, AGA provided 187 fraudulent invoices totaling $1,137,000 that purported to represent payment to media vendors when in fact AGA never paid any vendors based on these invoices. Subsequent to the EAC audit and in response to federal grand jury subpoenas, AGA and KC submitted fraudulent invoices that purported to support the nine payments totaling $746,375 that KC received from AGA between Oct. 2004 and Nov. 2006. Three of these invoices sought payments in the aggregate amount of $236,605 for production of a poll worker training video that was actually produced by another subcontractor at the cost of $75,000.
“The sentence imposed on Joseph Kupfer concludes the prosecution of an important case that sends a powerful message to those who do business with the government: we will aggressively investigate and vigorously prosecute those who steal federal funds and dodge their civic obligation to pay their rightful share of taxes,” said Acting U.S. Attorney Steven C. Yarbrough. “The prosecutors and agents who handled the investigation and prosecution of this case deserve tremendous credit and our thanks for doing an outstanding job and ensuring that the Kupfers and Gutierrez were held responsible for their crimes.”
New Mexico Attorney General Gary King said, “I am very proud of our involvement in this case, especially the work that my investigators produced, which helped in the prosecution and conviction of Mr. Kupfer. This is another good example of how cooperation between our respective offices can result in justice being served.”
“Mr. Kupfer violated the public’s trust by misappropriating voter education funds and using the money to line his own pockets. In addition, he committed tax evasion by intentionally concealing over $750,000 of income. When you steal federal funds, cheat on your taxes, and take steps to conceal your crimes, prison is usually the end result,” stated IRS Criminal Investigation Special Agent in Charge Dawn Mertz.
“If you do business with the government and decide to steal from taxpayers, you better expect the FBI to come after you. In this case, two individuals sought to enrich themselves at the expense of a program designed to improve voting systems and voter access. I would like to congratulate the FBI Special Agents who worked so hard on this complex investigation, alongside their partners at the U.S. Attorney’s Office, IRS Criminal Investigation and the New Mexico Attorney General’s Office,” said FBI Special Agent in Charge Carol K.O. Lee.
On May 14, 2013, Mrs. Kupfer was sentenced to three years in prison followed by three years of supervised release for her tax evasion conviction. Gutierrez was sentenced on August 19, 2013 to ten years in federal prison followed by three years of supervised release for his convictions for conspiracy, theft of government property, obstruction of justice and money laundering. Gutierrez also was ordered to pay $2,500,483 in restitution to the State of New Mexico, including $746,375 which is to be paid jointly with Kupfer. He also was ordered to forfeit $2,500,483, including his interest in his Corpus Christi residence, to the United States.
The case was investigated by IRS Criminal Investigation and the Albuquerque office of the FBI, with assistance from the New Mexico Attorney General’s Office. It was prosecuted by Assistant U.S. Attorneys Tara C. Neda, Jeremy Peña and Cynthia L. Weisman.Johnson City Pharmacist Sentenced to Serve Five Years ProbationRead the Press Release
JOHNSON CITY, Tenn. – Thomas Patrick Rowan, 59, of Johnson City, was sentenced on September 11, 2013, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve five years on federal supervised probation and a fine of $2,500. Rowan also agreed to a $75,000 forfeiture as a result of his conviction.
Rowan was charged in an information in April 2013, and pleaded guilty on April 30, 2013, to one count of obtaining oxycodone, a Schedule II controlled substance, by fraud and one count of providing false or fraudulent information in reports concerning controlled substance inventories. Rowan was a pharmacist who owned and operated pharmacies in Johnson City and Fall Branch at the time of these offenses.
“Our office takes all cases involving oxycodone and other prescribed controlled substances very seriously. Prescription controlled substance abuse is an epidemic in east Tennessee and we work aggressively to ensure that the controlled substance laws are enforced,” stated U.S. Attorney William C. Killian.
The Federal Bureau of Investigation and the Drug Enforcement Administration Diversion Division were involved in this investigation. Assistant U.S. Attorneys M. Suzanne Kerney-Quillen and Helen C.T. Smith represented the United States.
Jemez Pueblo Man Pleads Guilty to Federal Second Degree Murder ChargeRead the Press Release
ALBUQUERQUE – Lucas Michael Ray Toledo, 25, a resident and enrolled member of Jemez Pueblo, pleaded guilty this morning to a second degree murder charge. Under the terms of his plea agreement, Toledo will be sentenced to a prison term between 28 years and 32 years followed by a term of supervised release to be determined by the court. The guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough and Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI.
Toledo was arrested on Sept. 29, 2010, on a criminal complaint alleging that he murdered Matthew Panana, 21, also a member of Jemez Pueblo. Toledo subsequently was indicted on that same charge in Oct. 2010. Proceedings in the case were delayed by competency proceedings.
According to court filings, Toledo murdered the victim in the early hours of Sept. 29, 2010, outside Toledo’s residence on Jemez Pueblo. Toledo acknowledged murdering the victim sometime after 1:30 a.m. after the victim repeatedly disrupted Toledo as he was attempting to sleep by knocking on Toledo’s bedroom window. In response to the victim’s disruptive behavior, Toledo went outside and attacked the victim, stabbing him repeatedly with a box-cutter razor and kitchen knife and beating him with a shovel.
During today’s plea hearing, Toledo pleaded guilty to a felony information charging him with second degree murder and admitted killing the victim by stabbing him with a knife and beating him with a shovel. Toledo has been in custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
The case was investigated by the Albuquerque office of the FBI with assistance from the Jemez Pueblo Police Department and is being prosecuted by Assistant U.S. Attorney Presiliano A. Torrez.
Individual Indicted and Arrested for Making False StatementsRead the Press Release
SAN JUAN, P.R. – Today, a Federal Grand Jury returned a one-count indictment charging Gabriel Osorio-Cotto of providing false information and hoaxes to the Puerto Rico 9-1-1 Emergency Services, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. Osorio-Cotto was arrested yesterday by agents from the Puerto Rico Police Department and the FBI.
Yesterday, September 10, at approximately 2:47 PM, a call was received by the PR 911 Center where an individual stated that an explosion would occur on a JetBlue flight at the Luis Muñoz Marín International Airport at 6pm. The call originated from a public phone booth at 2001 Americo Miranda. When special agents reported to the site they found that the business around the telephone booth had camera surveillance. The video was reviewed and it showed an individual making the call, who was later identified as Gabriel Osorio-Cotto. The airport operations were affected and the airport was screened for explosives due to this threat.
If convicted, defendant faces up to five years in prison, and fines up to $250,000.00. The case was investigated by the FBI and Police of Puerto and is being prosecuted by Assistant U.S. Attorney Marcela C. Mateo.Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Houston Woman Charged in Check Cashing SchemeRead the Press Release
HOUSTON – Doris Hayes, 36, of Houston, has been indicted for her role in a check cashing scheme in which she supplied false Social Security numbers to two banks in order to open up various accounts, announced United States Attorney Kenneth Magidson.
Hayes, currently in custody on unrelated state charges, is expected to make an initial appearance before a U.S. magistrate judge in the near future.
According to the superseding indictment, returned today, Hayes opened bank accounts at International Bank of Commerce and University Federal Credit Union using Social Security numbers that did not belong to her.
A previous related indictment charged Sandra Carrier, 57, of Houston, with taking part in a scheme in which she caused her deceased mother’s treasury checks from the Department of Veterans Affairs and Social Security Administration to be cashed after her mother had passed away. Some of those checks were cashed using the same bank accounts that Hayes opened with false Social Security numbers. Carrier has already pleaded guilty to charges contained in that indictment and was sentenced to 12 months and one day in prison by U.S. District Judge David Hittner on March 12, 2013.
She is charged in today’s superceding indictment with two counts of making a false statement for which she faces up to five years in prison on each as well as a possible $250,000 fine. She is further charged with one count of aggravated identity theft. If convicted on that charge, she faces a possible two-year sentence that must be served consecutively to any other sentence imposed.
This case is the result of a joint investigation involving multiple federal agencies including the Social Security Administration – Office of Inspector General and the Department of Veterans Affairs. Assistant U.S. Attorney Andrew Leuchtmann is prosecuting this case.
A defendant is presumed innocent unless and until convicted through due process of law.Houston Man Sentenced for $20 Million ‘Black Market Peso Exchange’ SchemeRead the Press Release
One of the leaders of a criminal conspiracy that laundered more than $20 million through “shell” business bank accounts was sentenced today to 151 months in prison.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
Willie Whitehurst, 45, of Houston, was sentenced by U.S. District Judge Lee H. Rosenthal of the Southern District of Texas. In January and February 2013, Whitehurst and co-conspirators Enrique Morales, Fulton Smith and Anthony Foster pleaded guilty to conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business. Another co-conspirator, Sarah Combs, also pleaded guilty to conspiracy to operate an unlicensed money transmitting business.
In August 2012, a federal grand jury in Houston indicted the five defendants for their parts in a large “Black Market Peso Exchange” scheme. From October 2009 to September 2011, the defendants placed U.S. currency gained through the sale of drugs in U.S. cities into bank accounts held in the names of the organization’s “shell” companies. The money was then transferred to different accounts in the U.S. and in Mexico. In exchange, pesos were transferred back to accounts owned by the organization’s clients.Morales was previously sentenced to 188 months in prison, and Foster received a sentence of 121 months in prison. Smith was sentenced to 30 months, while Combs was sentenced to 24 months in prison.
The case was investigated by the Drug Enforcement Administration and the Internal Revenue Service – Criminal Investigation Division. Assistant U.S. Attorney Ted Imperato of the Southern District of Texas and Trial Attorney Keith Liddle of the Money Laundering and Bank Integrity Unit of the Criminal Division’s Asset Forfeiture and Money Laundering Section prosecuted the case.
Holyoke Woman Sentenced for Defrauding MassHealthRead the Press Release
BOSTON – A Holyoke resident was sentenced in U.S. District Court in Springfield for defrauding MassHealth, by billing for personal care attendant services that were never provided.
U.S. District Judge Michael A. Ponsor sentenced Miosottis Gonzalez, 25, to two years of probation and ordered her to pay $64,000 in restitution. In April, Gonzalez pleaded guilty to conspiracy to commit health care fraud. Three other individuals involved in the conspiracy, included Gonzalez’s aunt and uncle, previously pleaded guilty and were sentenced earlier this month.
Gonzalez engaged in a scheme to defraud the state’s Personal Care Attendant (PCA) Program. The PCA Program, funded by MassHealth, the Commonwealth’s Medicaid Program, helps individuals with permanent or chronic disabilities keep their independence, stay in the community, and manage their own personal care. Gonzalez recruited friends to provide identification documents which were used to bill MassHealth for PCA services that were never provided. Gonzalez also signed and submitted false time sheets in her own name to obtain payment for services she never provided.
United States Attorney Carmen M. Ortiz and Susan J. Waddell, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement today. The case was investigated by HHS-OIG with the assistance of the Commonwealth of Massachusetts Auditor’s Office, Bureau of Special Investigations, and the Commonwealth of Massachusetts, Office of the Attorney General, Medicaid Fraud Division. It is being prosecuted by Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Branch Office.
Goodwin Announces California Man Sentenced to 7+ Years in $122 Million Extortion PlotRead the Press Release
Vivek Shah threatened to kill family members of seven wealthy extortion targets
BECKLEY, W.Va. - U.S. Attorney Booth Goodwin today announced that Vivek Shah, 26, of West Hollywood, Calif., was sentenced to 7 years and 3 months in federal prison for orchestrating a multimillion-dollar extortion scheme. Last year, Shah threatened to kill family members of seven prominent victims, including movie producer Harvey Weinstein, Groupon co-founder Eric Lefkofsky, and coal executive Chris Cline, unless his targets wired tens of millions of dollars into offshore bank accounts.
"Imagine how terrifying it would be to open the mail and find a threat to kill your spouse or your children," said U.S. Attorney Booth Goodwin. "This defendant carried out a carefully planned scheme designed to frighten his victims out of more than $120 million. It was an extraordinarily brazen crime, and I'm pleased, for the victims' sake, that we were able to put a stop to it so quickly."
Shah’s other victims included oil and gas billionaire Terry Pegula, from whom he demanded $34 million; Playtone film company co-owner Gary Goetzman, from whom he demanded $9.6 million; Ryan Kavanaugh, founder of Relativity Media, from whom Shah demanded $11.3 million; and Dannine Avara, daughter of a prominent Texas oil-industry executive, from whom Shah demanded $35 million.Shah demanded $4 million from Weinstein, $16 million from Lefkofsky and $13 million from Cline. His demands totaled more than $122 million.
Shah sent letters threatening specific family members of his victims by name and used language carefully designed to persuade his targets that his threats were serious.
Shah used various means to avoid detection during the scheme by creating false identities. He fraudulently opened financial accounts in his victims' names. Shah also made purchases using prepaid debit cards that he registered under aliases. To avoid being traced when he committed criminal acts using his computer, he sought out anonymous, public Internet hotspots; altered the address associated with the computer's network card; and routed his Internet communications through special servers that disguise users' identities. He also created numerous accounts with the U.S. Postal Service under false names.
Shah was arrested by FBI agents on August 10, 2012 in Schaumberg, Ill.
This investigation was conducted jointly by the Federal Bureau of Investigation’s Pittsburgh, Los Angeles, and Chicago divisions, and the United States Postal Inspection Service.
Counsel to the United States Attorney Steve Ruby handled the prosecution.
Click here to listen to an audio clip provided by U.S. Attorney Booth Goodwin
G.S. Electech Inc. Executive Indicted for Role in Bid Rigging and Price Fixing on Automobile Parts Installed<br /> in U.S. CarsRead the Press Release
A federal grand jury in Covington, Ky., has returned an indictment against G.S. Electech Inc. executive, Shingo Okuda for his role in an international conspiracy to fix prices and rig bids of auto parts used on antilock brake systems installed in U.S. cars, the Department of Justice announced today. Today’s charge is the first to be filed in Kentucky in the department’s ongoing investigation into anticompetitive conduct in the automotive parts industry.
The indictment, filed today in the U.S. District Court for the Eastern District of Kentucky, charges Okuda, a Japanese national, with engaging in a conspiracy to rig bids for, and to fix, stabilize, and maintain the prices of speed sensor wire assemblies, which are installed in automobiles with an antilock brake system (ABS), sold to Toyota Motor Corp. and Toyota Motor Engineering and Manufacturing North America Inc. (collectively Toyota) in the United States and elsewhere.
G.S. Electech Inc. manufactures, assembles and sells a variety of automotive electrical parts, including speed sensor wire assemblies. The speed sensor wire assemblies connect a sensor on each wheel to the ABS to instruct it when to engage.
According to the charge, Okuda and his co-conspirators carried out the conspiracy by, among other things, agreeing during meetings and discussions to coordinate bids and fix prices of automotive parts submitted to Toyota. According to the charge, Okuda’s involvement in the conspiracy lasted from at least as early as January 2003 until at least February 2010.
“ Today’s indictment marks the 16th executive to be charged in the Antitrust Division’s continuing investigation of price fixing in the auto parts industry,” said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program. “Holding individuals accountable for their actions is the surest way to deter executives from choosing to collude rather than to compete for business.”“Those who engage in price fixing, bid rigging and other fraudulent schemes harm the automotive industry by driving up costs for vehicle makers and buyers,” said John Robert Shoup, Acting Special Agent in Charge, FBI Detroit Division. “The FBI is committed to pursuing and prosecuting these individuals for their crimes.”
Okuda is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence for individuals of 10 years in prison and a criminal fine of $1 million. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Including Okuda, 11 companies and 16 executives have been charged in the Justice Department’s ongoing investigation into the automotive parts industry. To date, more than $874 million in criminal fines have been imposed and 14 individuals have been sentenced to pay criminal fines and to serve jail sentences ranging from a year and a day to two years each. One other executive has agreed to serve time in prison and is scheduled to be sentenced on Sept. 25, 2013.
In May 2012, G.S. Electech Inc. pleaded guilty and was sentenced to pay a $2.75 million criminal fine for its role in the conspiracy related to speed sensor wire assemblies.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the Antitrust Division’s National Criminal Enforcement Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323.
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Former St. Louis Police Officer Indicted for Assaulting Two Juveniles and One AdultRead the Press Release
A federal grand jury in St. Louis has indicted Stan Lee Stanback, 47, a police officer formerly with the Velda City Police Department, on charges related to the assaults of two juveniles and one adult on Sept.17, 2008.
Stanback is charged with three counts of using unreasonable force on the three victims listed in the indictment when he punched and struck each one of them. The first two counts allege that Stanback used a police baton to assault the victims. All three counts allege that Stanback’s actions resulted in injury to all of the victims.
The indictment also charges Stanback with making false statements to FBI agents when he intentionally lied, claiming that prior to his assaults on the victims, he was surrounded by 15 men in the parking lot of the Velda City Police Department and was forced to draw his gun during the encounter. The indictment alleges that this was not true because Stanback knew at the time he spoke with FBI agents that he had only been approached by three juveniles and one adult and that he did not draw his gun.
Stanback faces a statutory maximum penalty of 10 years in prison for each of the civil rights violations and five years in prison for the false statements charge.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the St. Louis Division of the Federal Bureau Investigation and is being prosecuted by Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Former School Committee Member, and Boy Scout Leader, Sentenced for Charges of Child Sexual ExploitationRead the Press Release
BOSTON – A Whitinsville lawyer, who was also a Boy Scout troop leader and part-time middle school instructor, was sentenced to 18 years in prison on child pornography charges.
On September 9, in U.S. District Court in Worcester, Judge Timothy S. Hillman sentenced Andrew Jonathan Myers, 34, to 220 months in prison and 10 years of supervised release. On June 12, 2013, Myers pleaded guilty to four counts of using the Internet to entice, persuade, or induce a minor to engage in unlawful sexual conduct and possessing child pornography. Pursuant to a plea agreement with the government, Myers faced a possible sentence of between 15 and 21 years in prison and 10 years of supervised release.
Between July 13 and July 23, 2012, Myers communicated with a 12-year-old Colorado boy, identified as Juvenile Victim #1 (JV-1), over the Internet, first via email, and then through the web video service, Skype. During the course of the communications with JV-1, Myers told JV-1 that he was attractive, directed JV-1 to websites where child pornography could be found, and offered to “find” JV-1 “a place to sleep” if he came to Massachusetts. Throughout the communications, Myers repeatedly solicited JV-1 to take off his clothes and masturbate over the Skype video streaming service.
On May 7, May 9 and June 28, 2012, Myers sent sexually explicit emails to three minors, identified as JV-2 (age 13), JV-3 (age 11), and JV-4 (age 14), in which the he proposed to perform oral sex on the minors. Myers had served as a substitute school teacher for JV-2 and JV-3, and had been the Troop leader for JV-4's scout troop.
A computer and an external hard drive seized from Myers’ residence at the time of his arrest contained in excess of 600 videos depicting child pornography including an electronic video recording of a Skype video chat between Myers and a minor identified as JV-5, a 13-year-old South Carolina resident, in which JV-5 is depicted engaging in sexually explicit conduct.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; District Attorney Joseph Early of Worcester County; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Chief Walter J. Worhol of the Northbridge Police Department; and Chief Kenny Powell of the Millbury Police Department, made the announcement.
This was a joint investigation that was initiated by the Larimer County, CO, Sheriff’s Office who discovered Myers’ alleged conduct and provided the information that led to both Myers’ identification and these federal charges. The case was prosecuted by Assistant U.S. Attorney Mark J. Grady of Ortiz’s Worcester Office.
Former Postal Employee, Michael Roig, Pleads Guilty to Embezzleing MailRead the Press Release
MICHAEL ROIG, age 36, a resident of Covington, pled guilty in federal court today before U.S. District Court Judge Susie Morgan to embezzlement of mail matter, announced U. S. Attorney Dana J. Boente.
According to the factual basis, on May 15, 2012, while working as a United States Postal Service letter carrier at a Metairie post office, ROIG removed a package addressed to a Rouses Supermarket from a delivery bin. ROIG knew from the package’s appearance that it contained postage stamps. Postal Service agents confronted ROIG after he opened the package, which contained over $600 in stamps. ROIG admitted to the agents that he intended to take the stamps.
ROIG faces a maximum sentence of five years in prison, a maximum fine of $250,000, and up to three years of supervised release following any term of imprisonment. Sentencing is scheduled for December 4, 2013.
The matter was investigated by the United States Postal Service-Office of Inspector General, and is being prosecuted by Assistant United States Attorney Chandra Menon.
(Download Factual Basis )
Former Orleans Parish Deputy, Gerard J. Hoffman, Jr., Sentenced in Bribery CaseRead the Press Release
GERARD J. HOFFMAN, JR., 59, a resident of Mandeville, Louisiana, was sentenced today to 5 years probation by U.S. District Judge Jane Triche Milazzo for conspiracy to commit bribery, announced U.S. Attorney Dana J. Boente. In addition to the term of probation, Judge Milazzo ordered HOFFMAN to pay a fine of $25,000 and a $100 special assessment.
According to court records, HOFFMAN, the former head of the maintenance department at the Orleans Parish Sheriff’s Office (“OPSO”), began receiving things of value from a contractor, identified as Businessman B in court filings, in exchange for a rigged bidding system employed to steer OPSO work to Businessman B. In particular, from 2007 through 2011, Businessman B would submit bids for OPSO work in the name of his respective company but, with the knowledge and participation of, among others, HOFFMAN, would also submit phony or fake bids for these same projects in the names of other local companies, in an effort to give the appearance of a competitive bidding process. In many cases, the phony bids would intentionally be higher than the bids from Businessman B and, consequently, the OPSO work would be awarded, with HOFFMAN’s participation and knowledge, to Businessman B.
In exchange for this rigged bidding process, according to court documents, HOFFMAN received several things of value from Businessman B. For example, from 2007 through 2011, HOFFMAN received a trailer, a storage container, and free maintenance and construction work at a house owned by HOFFMAN, all at no cost to him. In total, HOFFMAN received at least $5,000, but less than $10,000 in things of value from Businessman B in exchange for HOFFMAN’s official acts at the OPSO.
The case was investigated by special agents of the Federal Bureau of Investigation.
The case is being prosecuted by Assistant U. S. Attorneys Matt Chester and Jon Maestri.
Former Old Saybrook Resident Sentenced to Nearly Six Years in Prison for Operating Multiple Fraud SchemesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that PAUL E. BRENNAN, 45, formerly of Old Saybrook, Conn., and Phoenix, Ariz., was sentenced today by Senior United States District Judge Alfred V. Covello in Hartford to 71 months of imprisonment, followed by five years of supervised release, for operating multiple fraud schemes.
According to court documents and statements made in court, from approximately March 2009 to August 2011, BRENNAN convinced women with whom he was romantically involved, and other acquaintances, to cash checks for him at financial institutions knowing that the checks were drawn on closed or underfunded accounts and would be returned for nonpayment. BRENNAN also cashed, or had others cash for him, fraudulent checks at check cashing businesses in Connecticut.
Also, from approximately November 2010 to June 2011, BRENNAN defrauded individuals by pitching phony investment deals and soliciting money from victims for fraudulent business ventures. During the scheme, BRENNAN convinced one victim to give him more than $100,000 for property deals and stock market investments, and he convinced other victims to give him money for investments in fraudulently-operated businesses, including BC Property Management and B&D Powerwashing. BRENNAN also persuaded certain victims to grant him authorization to use their credit cards and lines of credit.
In total, BRENNAN’s fraud schemes victimized more than 10 individuals and caused more than $370,000 in losses to those victims. BRENNAN used much of the money he received from his victims to pay personal expenses.
BRENNAN has been detained since his arrest on February 27, 2013. On June 18, he waived his right to indictment and pleaded guilty to one count of bank fraud and one count of mail fraud.
BRENNAN’s criminal history dates to 1986, and includes more than 35 convictions for various state offenses, including including assault, weapons possession, trespass, check fraud, forgery, and larceny.
This matter was investigated by the Federal Bureau of Investigation, the Old Saybrook Police Department and the State’s Attorney for the Judicial District of New London. The case was prosecuted by Special Assistant United States Attorney Kerry L. Quinn.
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[email protected]Former Leesburg Man Pleads Guilty to Oxycodone Conspiracy That Led to DeathRead the Press Release
ALEXANDRIA, Va. – George Washington Crane, V, 48, formerly of Leesburg, Va., pleaded guilty today to conspiracy to distribute oxycodone.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Michael L. Chapman, Sheriff of Loudon County, made the announcement after the plea was accepted by United States District Judge Liam O’Grady.
Crane was indicted on July 11, 2013, by a federal grand jury. He faces a maximum sentence of 20 years in prison when he is sentenced on December 20, 2013.
In a statement of facts filed with the plea agreement, Crane admitted to purchasing Oxycodone several times each week, between 2008 and 2011, from sources on the street in Washington, D.C. and Baltimore, Maryland. Crane then brought the Oxycodone to Leesburg, Virginia where he distributed the pills primarily to high school students and recent graduates. Crane sold Oxycodone from his residence and car to multiple customers daily.
According to the statement of facts, Crane distributed Oxycodone on August 7, 2010, to a conspirator who later provided it to William Huff, age 20. Huff died on August 8, 2010, as a result of injecting the Oxycodone that Crane distributed.
This case was investigated by FBI’s Washington Field Office and the Loudoun County Sheriff’s Office. Assistant United States Attorney Adam B. Schwartz is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Funeral Home Owner Pleads Guilty to Bank FraudRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Serrell Gayton, 55, of Rochester, N.Y., pleaded guilty before U.S. District Judge Charles J. Siragusa, to bank fraud. The charge carries a maximum penalty of 30 years in prison, a fine of $1,000,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that between December 15, 2011 and January 4, 2012, the defendant prepared false and fraudulent checks. As part of the scheme to defraud, Gayton and an associate deposited checks, made payable to the defendant’s business, Serenity Hills Funeral Chapel Inc., at Citizens Bank branches in Rochester. Checks totaling more than $17,000 were attempted to be deposited by the defendant and his associate, resulting in a loss to Citizens Bank of approximately $3,800.
Sentencing is scheduled for December 13, 2013 at 3:00 p.m. before Judge Siragusa.
The plea was the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast.Former Employee of Allstate Electrical Pleads Guilty to Embezzlement and Tax FraudRead the Press Release
Oklahoma City, Oklahoma – Renea I. Windham, of Oklahoma City, pled guilty in federal court today to making a forged security and filing a false tax return in connection with her embezzlement of more than $140,000 from a metro electrical contracting business, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Windham is the former bookkeeper at Allstate Electrical Contractors, Inc., in Oklahoma City. According to the Information filed in the case, Windham made and possessed a forged check from Allstate payable to her for $4,380.08. At today’s plea hearing, Windham admitted that she prepared that check to herself without Allstate’s permission, and caused the company’s accounting records to show the check was instead issued to a legitimate electrical company. Windham also admitted that she embezzled more than $140,000 from Allstate from 2010 to 2013. The Information also alleged that Windham submitted a false federal income tax return for tax year 2012 by failing to report substantial income. At today’s plea hearing, Windham admitted that she did not claim more than $60,000 of embezzled income from Allstate on her 2012 federal income tax return.
At sentencing, Windham faces up to ten years in federal prison and a fine up to $250,000 on the forged security charge and up to three years in federal prison and a fine up to $250,000.00 on the tax charge. She agreed in her plea agreement to pay restitution to Allstate in the amount of $143,057.10. She also agreed to pay restitution to the Internal Revenue Service in the amount of her federal income tax due, to be determined by the Court. United States District Judge Robin J. Cauthron will sentence Windham on December 11, 2013.
These charges are the result of an investigation conducted by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, and the United States Secret Service. The case is being prosecuted by Assistant U.S. Attorney Chris M. Stephens.
Former Court Reporter Sentenced to Prison Time for Charges Related to Obstruction of JusticeRead the Press Release
ABINGDON, VIRGINIA – United States Attorney Timothy J. Heaphy announced today that Ernest Julius Benko, 67, of Norton, Va., was sentenced yesterday in the United States District Court for the Western District of Virginia in Abingdon to 15 months incarceration following his earlier guilty pleas to charges related to the obstruction of a federal criminal investigation.
Benko had earlier entered a plea of guilty to one count of obstruction of an official proceeding and one count of conspiracy to cause false statements and obstruct an official proceeding.
According to evidence presented at his guilty plea hearing by Assistant United States Attorney Zachary T. Lee, between 2008 and 2013, Benko was employed as a private investigator, videographer, notary public, and a court reporter for the Circuit Court of Wise County, Virginia and the United States Bankruptcy Court for the Western District of Virginia.
During this time, the Federal Bureau of Investigation and Virginia State Police had an ongoing investigation regarding attorney Robert Stuart Collins’ involvement in the illegal possession and distribution of controlled substances. In May 2009, Benko was hired by Collins to record sworn statements from individuals cooperating in the FBI and Virginia State Police’s investigation in which the witnesses were told to falsely represent that Collins had no involvement in anything that was illegal or unethical.
These false statements were conducted in order to obstruct the criminal investigation into Collins. One of the witnesses, whose statement Benko recorded, was also told to falsely state that he had been threatened by an FBI agent in order to secure his cooperation in the FBI's investigation. At the time of the taking of these false sworn statements Benko was aware that Collins had a drug problem and had been involved in the illegal activity that was the subject of the criminal investigation. On September 13, 2012, Benko was interviewed by agents of the FBI and Virginia State Police. Benko falsely stated that he had no knowledge of Collins being involved in illicit drug use.
The investigation of this case was conducted by the Virginia State Police, Federal Bureau of Investigation, Wise County Commonwealth’s Attorney’s Office, and the Southwest Virginia Drug Task Force. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.
Former Candidate for DeKalb County Superior Court Pleads Guilty to Defrauding InvestorsRead the Press Release
ATLANTA - Michael Rothenberg, a former candidate for a seat on the DeKalb County Superior Court, pleaded guilty today to a charge of defrauding the owners of WinterHawk Energy and Development Corporation.
“This defendant stole from investors who trusted his judgment,” said United States Attorney Sally Quillian Yates. “His fraud is particularly egregious because he was involved in defrauding investors at the very time he was seeking to be elected as a DeKalb County Superior Court Judge, and because he used a portion of the illegal proceeds to fund his political campaign. Ultimately, his fraud scheme was uncovered, and his quest to be elected ended in failure.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Investment fraud schemes often have at their core individuals who appear very credible. These schemes often end with those individuals being revealed as greedy and uncompassionate for those devastated investors whose trust they betrayed. Today’s guilty plea will ensure that Mr. Rothenberg will be held accountable for his criminal actions.”
According to United States Attorney Yates, the charges and other information presented in court: Michael Rothenberg, 35, of DeKalb County, Ga., deceitfully persuaded the owners of WinterHawk Energy and Development Corporation (“WinterHawk”) into investing a total of $1.35 million. Rothenberg represented that the invested money would be placed in a trust account, controlled by Rothenberg, which would be used to fund the trading of notes by large financial institutions. These notes, according to Rothenberg, would be split into “tranches,” and a ten percent profit would be earned each time a note or “tranch” was traded. Rothenberg told the investors that the investment involved no risk.
In fact, no investment existed and Rothenberg used the money paid by WinterHawk to fund his political campaign for a seat on the DeKalb County Superior Court as well as to pay personal expenses. Rothenberg ultimately was unsuccessful in his bid for a judgeship. During the scheme, Rothenberg placated the investors’ concerns and lulled them into believing that the investment opportunity was real by emailing them fabricated bank statements, which made it appear as if the money they had invested remained in his trust account and that Rothenberg himself was wealthy. From time to time Rothenberg returned some of the money to the investors in response to their demands, and claimed falsely that he was making up for the shortfall by personally investing his own money. But Rothenberg did not invest his own money, and in fact spent the remaining proceeds – approximately $800,000 – without the investors’ knowledge or consent.
The charge of wire fraud in this case carries a maximum sentence of 20 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Sentencing is scheduled for November 18, 2013 at 10:00 a.m. before United States District Judge Steve C. Jones.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Steven D. Grimberg is prosecuting the case. The DeKalb County District Attorney’s Office has provided valuable assistance.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former Bergen County, N.J., Democratic Chairman Indicted on Racketeering ChargesRead the Press Release
Kickbacks, Bribery and Extortion Alleged
NEWARK, N.J. – A federal grand jury indicted Joseph A. Ferriero, the former chairman of the Bergen County Democratic Organization (BCDO), today, charging him with a racketeering scheme involving kickbacks paid to a public official, soliciting and accepting bribes as a party official and extortion, U.S. Attorney Paul J. Fishman announced.
The indictment charges Ferriero, 56, with conducting the BCDO’s affairs through a pattern of racketeering activity. He is also charged with conspiring to promote bribery and distribute bribe proceeds and to commit mail and wire fraud; as well as with one count each of violating the Travel Act and the mail and wire fraud statutes.
Ferriero is expected to make his initial court appearance before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court on a date to be determined.
“According to the indictment, Joseph Ferriero ran a political organization as a racketeering enterprise, abusing power for profit,” said U.S. Attorney Fishman. “Today’s charges expose years of peddled influence, from grants to building projects to software contracts. Battling political corruption is a constant priority for this office; we will continue to demand honest public service for the people of New Jersey.”
“The conduct alleged in today’s indictment is another unfortunate example of someone misusing their position in our political system for personal gain,” said FBI Special Agent in Charge Aaron T. Ford. “Such conduct tarnishes our political system. Today’s indictment reaffirms the FBI’s commitment to combat public corruption in New Jersey, and serves as a stark reminder that those who seek to violate public trust will be held accountable.”
According to the indictment returned today:
Ferriero served as the chairman of the BCDO from 1998 until January 2009. From December 2001 until October 2008, he conducted the BCDO’s affairs through a pattern of racketeering activity involving three schemes: the Governmental Grants Consulting (GGC) kickback scheme, the retail and entertainment project bribery and extortion scheme and the SJC Consulting (SJC) bribery scheme.
Ferriero offered Dennis J. Oury, 63, of Naples, Fla., the then-incoming borough attorney in Bergenfield, N.J., a concealed ownership interest in GGC in exchange for Oury’s agreement to exercise official action and discretion in GGC’s favor in Bergenfield. Oury accepted the offer and used his official position to cause GGC to be hired in Bergenfield. A portion of GGC’s proceeds from the borough were ultimately “kicked back” to Oury by Ferriero.
The conduct in this scheme was the subject of an earlier indictment and superseding indictment against Oury and Ferriero. On Sept. 29, 2009, Oury pleaded guilty before U.S. District Judge Stanley R. Chesler to Count One of the superseding indictment, charging him with conspiring with Ferriero to defraud Bergenfield through the use of the mails, and Count 11, charging him with willful failure to file a tax return. Oury was sentenced by Judge Chesler on Nov. 29, 2012, to three years of probation.
On Oct. 29, 2009, a federal jury found Ferriero guilty of one count of conspiracy and two counts of mail fraud related to the same scheme, but Judge Chesler dismissed the superseding indictment prior to Ferriero’s sentencing after the U.S. Supreme Court’s decision in Skilling v. United States.
Ferriero engaged in the retail and entertainment project bribery and extortion scheme by soliciting payments totaling $1.7 million from a Virginia-based real estate investment trust (the “Virginia REIT”) that, between 2002 and 2006, was involved in an attempt to develop land owned by the N.J. Sports & Exposition Authority (NJSEA) in Bergen County.
In 2002, the Virginia REIT agreed to secretly pay a consulting company operated by Ferriero and two of his then-law partners $35,000 a month in exchange for Ferriero’s agreement not to publicly oppose – nor to cause members of the BCDO or other public officials with whom he had influence to publicly oppose – the Virginia REIT’s proposal to the NJSEA. The payments were also in exchange for Ferriero’s assistance in obtaining endorsements, public support and other official action and inaction in favor of the Virginia REIT from members of the BCDO and other public officials with whom he had influence.
The indictment also alleges that Ferriero accepted bribes in his capacity as BCDO chairman in the course of the SJC bribery scheme. Ferriero agreed with a Nutley, N.J.-based attorney and software developer that Ferriero would recommend and provide a favorable opinion of the software developer and his companies to various public officials in Bergen County with whom Ferriero had influence. The software developer agreed to pay Ferriero one-quarter to one-third of the gross receipts from any contract obtained as a result of Ferriero’s efforts. Ferriero’s financial interest in the software developer’s public contracts was completely hidden using two shell companies, one of which was created and incorporated in Nevada for the sole purpose of contracting with and accepting payments from another shell company controlled by the software developer.
The racketeering charge carries a maximum potential penalty of 20 years in prison; the conspiracy charge carries a maximum potential penalty of five years in prison; the Travel Act charge carries a maximum penalty of five years in prison; and the mail and wire fraud charges each carry a maximum potential penalty of 20 years in prison. Each count of the indictment also carries a maximum $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Ford in Newark, for their work in the investigation.
The government is represented by Counsel to the U.S. Attorney Rachael A. Honig. Criminal investigators from the U.S. Attorney’s Office led the investigation in this case.
The charges and allegations contained in the indictment are merely accusations and the defendant is considered innocent unless and until proven guilty.
13-363Defense counsel: Michael Baldassare and Jennifer Mara, Esqs., Newark
Ferriero Indictment
Former Bergen County, N.J., Democratic Chairman Indicted on Racketeering ChargesRead the Press Release
Kickbacks, Bribery and Extortion Alleged
NEWARK, N.J. – A federal grand jury indicted Joseph A. Ferriero, the former chairman of the Bergen County Democratic Organization (BCDO), today, charging him with a racketeering scheme involving kickbacks paid to a public official, soliciting and accepting bribes as a party official and extortion, U.S. Attorney Paul J. Fishman announced.
The indictment charges Ferriero, 56, with conducting the BCDO’s affairs through a pattern of racketeering activity. He is also charged with conspiring to promote bribery and distribute bribe proceeds and to commit mail and wire fraud; as well as with one count each of violating the Travel Act and the mail and wire fraud statutes.
Ferriero is expected to make his initial court appearance before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court on a date to be determined.
“According to the indictment, Joseph Ferriero ran a political organization as a racketeering enterprise, abusing power for profit,” said U.S. Attorney Fishman. “Today’s charges expose years of peddled influence, from grants to building projects to software contracts. Battling political corruption is a constant priority for this office; we will continue to demand honest public service for the people of New Jersey.”
“The conduct alleged in today’s indictment is another unfortunate example of someone misusing their position in our political system for personal gain,” said FBI Special Agent in Charge Aaron T. Ford. “Such conduct tarnishes our political system. Today’s indictment reaffirms the FBI’s commitment to combat public corruption in New Jersey, and serves as a stark reminder that those who seek to violate public trust will be held accountable.”
According to the indictment returned today:
Ferriero served as the chairman of the BCDO from 1998 until January 2009. From December 2001 until October 2008, he conducted the BCDO’s affairs through a pattern of racketeering activity involving three schemes: the Governmental Grants Consulting (GGC) kickback scheme, the retail and entertainment project bribery and extortion scheme and the SJC Consulting (SJC) bribery scheme.
Ferriero offered Dennis J. Oury, 63, of Naples, Fla., the then-incoming borough attorney in Bergenfield, N.J., a concealed ownership interest in GGC in exchange for Oury’s agreement to exercise official action and discretion in GGC’s favor in Bergenfield. Oury accepted the offer and used his official position to cause GGC to be hired in Bergenfield. A portion of GGC’s proceeds from the borough were ultimately “kicked back” to Oury by Ferriero.
The conduct in this scheme was the subject of an earlier indictment and superseding indictment against Oury and Ferriero. On Sept. 29, 2009, Oury pleaded guilty before U.S. District Judge Stanley R. Chesler to Count One of the superseding indictment, charging him with conspiring with Ferriero to defraud Bergenfield through the use of the mails, and Count 11, charging him with willful failure to file a tax return. Oury was sentenced by Judge Chesler on Nov. 29, 2012, to three years of probation.
On Oct. 29, 2009, a federal jury found Ferriero guilty of one count of conspiracy and two counts of mail fraud related to the same scheme, but Judge Chesler dismissed the superseding indictment prior to Ferriero’s sentencing after the U.S. Supreme Court’s decision in Skilling v. United States.
Ferriero engaged in the retail and entertainment project bribery and extortion scheme by soliciting payments totaling $1.7 million from a Virginia-based real estate investment trust (the “Virginia REIT”) that, between 2002 and 2006, was involved in an attempt to develop land owned by the N.J. Sports & Exposition Authority (NJSEA) in Bergen County.
In 2002, the Virginia REIT agreed to secretly pay a consulting company operated by Ferriero and two of his then-law partners $35,000 a month in exchange for Ferriero’s agreement not to publicly oppose – nor to cause members of the BCDO or other public officials with whom he had influence to publicly oppose – the Virginia REIT’s proposal to the NJSEA. The payments were also in exchange for Ferriero’s assistance in obtaining endorsements, public support and other official action and inaction in favor of the Virginia REIT from members of the BCDO and other public officials with whom he had influence.
The indictment also alleges that Ferriero accepted bribes in his capacity as BCDO chairman in the course of the SJC bribery scheme. Ferriero agreed with a Nutley, N.J.-based attorney and software developer that Ferriero would recommend and provide a favorable opinion of the software developer and his companies to various public officials in Bergen County with whom Ferriero had influence. The software developer agreed to pay Ferriero one-quarter to one-third of the gross receipts from any contract obtained as a result of Ferriero’s efforts. Ferriero’s financial interest in the software developer’s public contracts was completely hidden using two shell companies, one of which was created and incorporated in Nevada for the sole purpose of contracting with and accepting payments from another shell company controlled by the software developer.
The racketeering charge carries a maximum potential penalty of 20 years in prison; the conspiracy charge carries a maximum potential penalty of five years in prison; the Travel Act charge carries a maximum penalty of five years in prison; and the mail and wire fraud charges each carry a maximum potential penalty of 20 years in prison. Each count of the indictment also carries a maximum $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Ford in Newark, for their work in the investigation.
The government is represented by Counsel to the U.S. Attorney Rachael A. Honig. Criminal investigators from the U.S. Attorney’s Office led the investigation in this case.
The charges and allegations contained in the indictment are merely accusations and the defendant is considered innocent unless and until proven guilty.
13-363Defense counsel: Michael Baldassare and Jennifer Mara, Esqs., Newark
Ferriero Indictment
Former Bank Employee Sentenced to Probation with Home Detention for Stealing Customer's Account InformationRead the Press Release
PITTSBURGH, Pa. - A resident of McKees Rocks, Pa., has been sentenced in federal court to probation for a term of three years with six months home detention to include electronic monitoring on her conviction of identity theft, United States Attorney David J. Hickton announced today.
United States District Judge Donetta W. Ambrose imposed the sentence on Sonya Smith, 26.
According to the information presented to the court, Smith, a former customer service representative for PNC Bank, provided PNC customer account information to another person which was later used to open fraudulent credit accounts.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force conducted the investigation that led to the prosecution in this case. The WPFCTF was established in February 1995 as a collaborative, multiagency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort is the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Former Background Investigator for Federal Government Sentenced for Making A False StatementRead the Press Release
WASHINGTON – Ramon S. Davila, 59, a former background investigator under contract with the U.S. Office of Personnel Management (OPM), was sentenced today to four years of probation, during which time he must serve 60 days in community detention and perform 200 hours of community service, on a charge stemming from his falsification of work on background investigations of federal employees and contractors.
The sentence was announced by U.S. Attorney Ronald C. Machen Jr. and Patrick E. McFarland, Inspector General for the Office of Personnel Management.Davila, of Homestead, Fla. and Fredericksted, St. Croix, U.S. Virgin Islands, pled guilty in June 2013 in the U.S. District Court for the District of Columbia to making a false statement. He was sentenced by the Honorable Amy Berman Jackson, who ordered that his detention be served in a residential re-entry program. In addition, as part of his plea agreement, Davila must pay $79,468 in restitution to the federal government.
According to a statement of offense submitted to the Court, Davila worked for three contractors that did federal background investigations on behalf of OPM’s Federal Investigative Services.
Between August 2006 and August 2007, in multiple Reports of Investigations on background investigations, Davila represented that he had interviewed a source or reviewed a record regarding the subject of the background investigation. In fact, he had not conducted the interviews or obtained the records of interest. His reports were utilized and relied upon by the agencies requesting the background investigations to determine whether the subjects were suitable for positions having access to classified information, for positions impacting national security, or for receiving or retaining security clearances.
Davila’s false representations have required Federal Investigative Services to reopen and rework numerous background investigations that were assigned to him during the time period of his falsifications, at an estimated cost of at least $79,468 to the U.S. government.
Federal Investigative Services has a robust integrity assurance program which utilizes a variety of methods to ensure the accuracy of reported information. The falsification of investigative case work by the defendant was detected through the program.
This is one of numerous cases prosecuted by the U.S. Attorney’s Office for the District of Columbia since 2008 involving false representations by background investigators and record checkers working on federal background investigations. In addition to Davila, 16 other background investigators and two record checkers have been convicted of charges.
Federal Investigative Services, through its workforce of approximately 7,600, including 6,100 field investigators, is responsible for conducting background investigations for numerous federal agencies and their contractors, on individuals either employed by or seeking employment with those agencies or contractors. Federal Investigative Services conducted more than 2.1 million investigations during the 2012 fiscal year. More than 770,000 of these investigations involved applicants for access or continued access to classified information.
In performing background investigations, the investigators conduct interviews of individuals who have information about the person who is the subject of the review. In addition, the investigators seek out, obtain, and review documentary evidence, such as employment records, to verify and corroborate information provided by either the subject of the background investigation or by persons interviewed during the investigation. After conducting interviews and obtaining documentary evidence, the investigators prepare a Report of Investigation containing the results of the interviews and document reviews, and electronically submit the material to OPM in Washington, D.C. OPM then provides a copy of the investigative file to the requesting agency, which can use the information to determine an individual’s eligibility for employment or a security clearance.
In announcing the sentence, U.S. Attorney Machen and Inspector General McFarland praised the efforts of Special Agents Nunzio Orlando, OPM, Office of the Inspector General, and Philip Kroop and David Newcomer, OPM, Federal Investigative Services. They also acknowledged the work of Paralegal Specialist Diane Hayes and Legal Interns Lindsey Frye, Julie Jacocks and Brian Nistler. Finally, they expressed appreciation to Assistant U.S. Attorneys Ellen Chubin Epstein and Maia L. Miller, and former Assistant U.S. Attorney Mary Chris Dobbie, who investigated and prosecuted this matter.
13-312Five Indicted for Allegedly Bribing A Gsa Official to Obtain Federal ContractsRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned five indictments charging the owners of companies with bribing a General Services Administration (GSA) official to obtain contracts to provide painting and other maintenance services at federal facilities. All the indictments were filed under seal and the last one was unsealed yesterday upon the arrest of the defendant.The individuals charged in the indictments are:
Carl Roberts, age 48, of Clinton, Maryland;
Ronald Wilkinson, age 60, of Brandywine, Maryland;
Robert W. Hales, a/k/a Bobby Hales, age 52, of Nanjemoy, Maryland;
Darold Patterson, age 72, of Deerwood, Maryland; and
Daryl Kitchen, age 59, of Upper Marlboro, Maryland.The Roberts indictment was returned on July 15, 2013; the Wilkinson and Hales indictments were returned on August 12, 2013; and the Patterson and Kitchen indictments were returned on August 26, 2013.
The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Inspector General Brian D. Miller, General Services Administration, Office of Inspector General; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
GSA Inspector General Brian D. Miller said, “We will continue to pursue contractors who line their own pockets by bribing corrupt officials at the expense of the American taxpayers.”
According to the indictments, Roberts owned four general construction and moving companies that he operated out of his residence in Clinton; Wilkinson owned a painting company located in Brandywine; Hales owned and operated two painting companies located in Nanjemoy; Patterson was a co-owner and operator of a general contracting company located in Rockville, Maryland; and Kitchen owned a general contracting company located in Upper Marlboro.
Each indictment alleges that the defendants paid bribes to a building manager who at the time was cooperating with the government, in exchange for the building manager awarding GSA service contracts to the defendants’ companies. GSA building managers were authorized to retain private contractors to complete maintenance projects on behalf of GSA and were further authorized to pay for maintenance projects that cost $3,000 or less using their government issued GSA credit cards. According to the indictments, each of the contracts awarded to the defendants either cost less than $3,000, or were charged by two separate invoices in order to keep the cost under $3,000.
Specifically, the indictments allege that: Roberts paid bribes totaling $1,300 in exchange for six contracts to Roberts’ companies, for which he was paid $8,724; Wilkinson paid bribes totaling $650 in exchange for two contracts, for which Wilkinson was paid $3,075; Hales paid bribes totaling $400 in exchange for two jobs, for which Hales was paid $3,300; that Patterson paid bribes totaling $1,800 in exchange for two contracts for which Patterson was paid $5,635; and that Kitchen paid bribes totaling $950 in exchange for four contracts for which Kitchen was paid $6,522.67.
The defendants face a maximum sentence of 15 years in prison for bribery. Roberts had an initial appearance yesterday. Hales, Wilkinson and Kitchen had initial appearances on September 5, 2013 and Patterson had an initial appearance on September 6, 2013. All of the defendants were released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
A sixth contractor, Andre Michael Lipford, age 43, of Washington, D.C., previously pleaded guilty to paying $750 in bribes in exchange for two jobs for his company, for which Lipford was paid $6,200. Lipford was sentenced to five months in prison, followed by five months of home detention as part of one year supervised release.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein thanked GSA Office of Inspector General and FBI for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Kristi N. O’Malley and Kelly O’Connell Hayes, who are prosecuting the case.
Final Defendant Sentenced to Federal Prison in Connection with Undocumented Immigrant Smuggling Incident That Resulted in 3 DeathsRead the Press Release
In San Antonio this afternoon, 26–year-old Jose Abram Lopez-Lozano, a resident of Michoacàn, Mexico, was sentenced to 36 months in federal prison in connection with an undocumented alien smuggling incident which resulted in three deaths announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Janice Ayala.
On March 27, 2013, Lopez-Lozano pleaded guilty smuggling undocumented aliens for financial gain. On the same day, his co-defendant, 32-year-old Javier Silva-Morales, a resident of Monterrey, Mexico, pleaded guilty to one count of smuggling undocumented aliens resulting in death. By pleading guilty, both admitted to transporting smuggled undocumented aliens on February 6, 2013, from Falfurrias, TX, to Houston when a Wilson County Sheriff’s deputy attempted to conduct a traffic stop near Poth, TX. A vehicle chase ensued. After losing sight of the vehicle, deputies subsequently discovered several individuals at the end of an open field standing on top of what appeared to be the same vehicle which was now submerged under water. A total of 13 individuals, including both defendants, were apprehended by sheriff’s deputies with assistance from Texas Department of Public Safety troopers. HSI agents later determined that the 13 were in the United States without proper documentation and placed them under arrest. A Texas Department of Public Safety dive team dispatched to the scene recovered three bodies from the bottom of the water near the vehicle.
On July 7, 2013, U.S. District Judge Xavier Rodriguez sentenced Silva-Morales to 150 months in federal prison.
This case was investigated by HSI, the Texas Department of Public Safety and the Wilson County Sheriff’s Office. Special Assistant United States Attorney Christina Playton prosecuted this case on behalf of the Government.Federal Grand Jury in Fort Wayne Returns IndictmentsRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
FortWayne,Indiana - TheUnited States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictments on September 11, 2013:
Jovon C. Harvey, 44, of Fort Wayne, Indiana, was charged with two counts of attempted tax evasion for tax years 2007 and 2008, three counts of failure to file a tax return for tax years 2007 through 2009 and one count of wire fraud.These charges were filed as the result of an investigation by the Internal Revenue Service.This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony Geller.
TheUnitedStatesAttorney'sOfficeemphasizedthatanIndictmentismerelyanallegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed willbedetermined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Eighth V-not Gang Member Pleads Guilty to Rico ConspiracyRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York, announces that TITUS NICKENS, age 30, of Syracuse, pled guilty this morning in U.S. District Court in Syracuse to an indictment which charged him and ten others with conspiring to exploit their membership in the V-NOT Gang to engage in a pattern of racketeering activity which included acts of murder, attempted murder, drug trafficking, and robbery. NICKENS is the eighth defendant to plead guilty in this case. The case against three co-defendants remains pending.
At sentencing, NICKENS faces up to life imprisonment, a $250,000 fine, and three years of supervised release following any period of incarceration.
The Indictment to which NICKENS pled alleges that from at least 2003 through May 2012 members of the V-Not Gang: (1) maintained a specific geographic territory within the City of Syracuse in which only gang members can sell crack cocaine and marijuana; (2) protected that exclusive crack distribution territory with violence; (3) obtained drugs from various suppliers; (4) projected a very violent attitude and responded to violence with violence in order to preserve their stature in the gang community; (5) used graffiti, hand signs, and tributes on their clothing to slain gang members to signify their gang membership; (6) used criteria such as a willingness to use violence, ability to sell drugs, and familial connections to determine membership; and (7) routinely carried and used firearms in connection with their gang activity.
There are multiple acts of violence and drug distribution set forth in the Indictment, including 1 murder, 10 other shootings, 8 other acts of gun possession, and 18 acts of crack distribution and/or possession with intent to distribute crack. With respect to the murder, the Indictment includes allegations that on November 26, 2010, gang member Kahari Smith shot and killed Kihary Blue on Interstate 81 in downtown Syracuse as part of an ongoing feud between the V-Not and Bricktown gangs.
Trial for the remaining three defendants - Kahari Smith, Habakkuk Nickens and Nathan King - is set to commence on October 1, 2013, in Syracuse.
This prosecution resulted from a long-term investigation conducted by the Syracuse Gang Violence Task Force, which is comprised of agents and detectives from the following agencies: United States Department of Justice, Bureau of Alcohol, Tobacco, and Firearms (Syracuse Office), the Syracuse Police Department, the Onondaga County Sheriff's Department, the New York State Police, and the United States Marshals Service. The Onondaga County District Attorney’s Office and the Drug Enforcement Administration - Syracuse office, also assisted in the investigation.
Further questions or inquiries may be directed to Assistant U.S. Attorney John M. Katko, who is prosecuting the case, at (315) 374-3605.
Eight Defendants Plead Guilty in Los Angeles in Armenian Power Gang CaseRead the Press Release
Four members and associates of the Armenian Power gang and four other individuals pleaded guilty late yesterday to charges relating to the activities of the Armenian Power criminal enterprise, including racketeering conspiracy, bank fraud, aggravated identity theft, drug-trafficking and illegal possession of firearms.
The guilty pleas were announced today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office.
The following defendants pleaded guilty before U.S. District Judge Dean D. Pregerson in the Central District of California:
• Karo Yerkanyan, aka “Guilty,” 32, of Tujunga, Calif., pleaded guilty to racketeering conspiracy, bank fraud, aggravated identity theft, conspiracy to possess with intent to distribute marijuana and felon-in-possession of a firearm;
• Arman Tangabekyan, aka “Spito” and “Thick Neck,” 34, of Encino, Calif., pleaded guilty to racketeering conspiracy, bank fraud and aggravated identity theft;
• Artur Pembejian, aka “Cham,” 36, of Burbank, Calif., pleaded guilty to racketeering conspiracy;
• Raymond Tarverdyan, aka “Rye,” 35, of Montrose, Calif., pleaded guilty to racketeering conspiracy and bank fraud;
• Simon Antonyan, aka “Simo,” 38, of Hollywood, Calif., pleaded guilty to aggravated identity theft;
• Khachatur Arakelyan, aka “Khecho,” 39, of Glendale, Calif., pleaded guilty to aggravated identity theft;
• Vartenie Ananian, 29, of Tujunga, pleaded guilty to bank fraud; and
• Adam Davoodian, 32, of Glendale, Calif., pleaded guilty to conspiracy to possess with intent to distribute marijuana.
The defendants who pleaded guilty yesterday were among 70 individuals charged in a 140-count indictment in July 2011 for criminal activities associated with the Armenian Power gang. The indictment accused 29 defendants, including four of those who pleaded guilty yesterday, of participation in the Armenian Power RICO conspiracy. The RICO conspiracy charge alleges a host of illegal activities, many of which involved sophisticated fraudulent schemes of identity theft, bank fraud, credit card skimming, manufacturing counterfeit checks and laundering criminal proceeds, often electronically. In addition, defendants were involved in a variety of violent crimes, such as extortion, kidnapping and firearms offenses. Among the schemes charged in the racketeering indictment is a bank fraud and identity theft scheme that victimized hundreds of customers of 99 Cents Only Stores throughout Southern California. Through the scheme, defendants caused more than $2 million in losses when they secretly installed sophisticated “skimming” devices to steal customer debit card account information at cash registers, and then used the skimmed information to create counterfeit debit cards to steal money from victims’ bank accounts.The eight defendants who pleaded guilty yesterday played various roles in the activities of the Armenian Power gang, including participating in bank fraud, drug distribution, access device fraud, identity theft and illegal firearm possession.
Yerkanyan, a member of the Armenian Power conspiracy, participated in a bank fraud scheme that obtained the personal identifying information and account information of victims. He and his co-conspirators used the information to open fraudulent bank accounts, loans and lines of credit at HSBC Bank and Bank of America without the knowledge of the victims. Tangabekyan, a member of the Armenian Power conspiracy, participated in a bank fraud scheme by obtaining personal information and account information for victims and then obtaining or transferring over $475,000 in funds.
Yerkanyan also participated, along with Davoodian, in a scheme to steal approximately 207 pounds of marijuana, worth approximately $450,000, from another drug distributor.
Pembejian, a member of the Armenian Power conspiracy, abetted the illegal possession of a firearm by a leader of the Armenian Power gang, Mher Darbinyan.
Tarverdyan, an Armenian Power member, and Antonyan, Arakelyan and Ananian participated in the scheme to install secret “skimming” devices at the 99 Cents Only Stores in order to obtain victims’ account information.
According to court documents, the Armenian Power street gang formed in the East Hollywood district of Los Angeles in the 1980s. The gang’s membership consisted primarily of individuals of Armenian descent, as well as of other countries within the former Soviet bloc. The Armenian Power has been designated under California state law as a criminal street gang and is believed to have over 250 documented members, as well as hundreds of associates. According to court documents, Armenian Power members and associates regularly carry out violent criminal acts, including murders, attempted murders, kidnappings, robberies, extortions, and witness intimidation in order to enrich its members and associates and preserve and enhance the power of the criminal enterprise.
The defendants are scheduled to be sentenced beginning on Nov. 25, 2013. Yerkanyan faces a maximum penalty of 102 years in prison. Tangabekyan faces a maximum penalty of 52 years in prison. Tarverdyan faces a maximum penalty of 50 years in prison. Ananian faces a maximum penalty of 30 years in prison. Pembejian and Davoodian each face a maximum penalty of 20 years in prison. And Antonyan and Arakelyan each face a maximum penalty of two years in prison.
Fifty-one defendants have previously pleaded guilty for their roles in the activities of the Armenian Power gang.
The case is being prosecuted by Assistant U.S. Attorneys Martin Estrada, Elizabeth Yang and Stephen Wolfe of the Central District of California and Trial Attorney Andrew Creighton of the Criminal Division’s Organized Crime and Gang Section. The case was investigated by the Eurasian Organized Crime Task Force, which is comprised of the FBI, the U.S. Secret Service, the Los Angeles Police Department, the Glendale Police Department, the Burbank Police Department, the Internal Revenue Service and U.S. Immigration and Customs Enforcement – Homeland Security Investigations.Eight Defendants Plead Guilty in Armenian Power RICO CaseRead the Press Release
LOS ANGELES – Four members and associates of the Armenian Power gang, as well as four others, pleaded guilty late Monday to charges related to the activities of the Armenian Power criminal enterprise, including racketeering conspiracy, bank fraud, aggravated identity theft, drug-trafficking and illegal possession of firearms.
The eight who pleaded guilty yesterday are among 70 people who were charged two years ago in a 140-count indictment that outlined the criminal activities of the Armenian Power gang. The indictment accused 29 defendants, including four of those who pleaded guilty yesterday, of participation in the Armenian Power racketeering conspiracy. The RICO count in the indictment alleges a host of illegal activities, including sophisticated fraud schemes involving identity theft, bank fraud, credit card skimming, counterfeit checks and money laundering. The indictment also alleged a variety of violent crimes, such as extortion, kidnapping and firearms offenses.
The racketeering indictment alleges a bank fraud and identity theft scheme that victimized hundreds of customers of 99 Cents Only Stores across Southern California. Through the scheme, defendants caused more than $2 million in losses when they secretly installed sophisticated “skimming” devices to steal customer debit card account information at cash registers, and then used the skimmed information to create counterfeit debit cards that were used to steal money from victims’ bank accounts.
The eight defendants who pleaded guilty yesterday before United States District Judge Dean D. Pregerson are:
Karo Yerkanyan, also known as “Guilty,” 32, of Tujunga, who pleaded guilty to racketeering conspiracy, bank fraud, aggravated identity theft, conspiracy to possess with the intent to distribute marijuana, and felon in possession of a firearm;Arman Tangabekyan, aka “Spito and “Thick Neck,” 34, of Encino, who pleaded guilty to racketeering conspiracy, bank fraud and aggravated identity theft;
Artur Pembejian, aka “Cham,” 36, of Burbank, who pleaded guilty to racketeering conspiracy;
Raymond Tarverdyan, aka “Rye,” 35, of Montrose, who pleaded guilty to racketeering conspiracy and bank fraud;
Simon Antonyan, aka “Simo,” 38, of Hollywood, who pleaded guilty to aggravated identity theft;
Khachatur Arakelyan, aka “Khecho,” 39, of Glendale, who pleaded guilty to aggravated identity theft;
Vartenie Ananian, 29, of Tujunga, who pleaded guilty to bank fraud; and
Adam Davoodian, 32, of Glendale, who pleaded guilty to conspiracy to possess with intent to distribute marijuana.
The eight defendants who pleaded guilty yesterday played various roles in the activities of the Armenian Power gang, including participating in bank fraud, drug distribution, access device fraud, identity theft and illegal firearm possession.
Yerkanyan, a member of the Armenian Power conspiracy, participated in a bank fraud scheme that obtained the personal identifying information and account information of victims. He and his co-conspirators used the information to open fraudulent bank accounts, loans and lines of credit at HSBC Bank and Bank of America without the knowledge of the victims. Yerkanyan also participated, along with Davoodian, in a scheme to steal approximately 207 pounds of marijuana, worth approximately $450,000, from another drug distributor.
Tangabekyan, another member of the Armenian Power conspiracy, participated in a bank fraud scheme by obtaining personal information and account information for victims and then obtaining or transferring over $475,000 in funds.
Pembejian, a member of the Armenian Power conspiracy, abetted the illegal possession of a firearm by a leader of the Armenian Power gang, Mher Darbinyan.
Tarverdyan, an Armenian Power member – along with Antonyan, Arakelyan and Ananian – participated in the scheme to secretly install the skimming devices at the 99 Cents Only Stores.
According to court documents, the Armenian Power street gang formed in the East Hollywood district of Los Angeles in the 1980s. The gang’s membership consisted primarily of individuals of Armenian descent, as well as of other countries within the former Soviet bloc. The Armenian Power has been designated under California state law as a criminal street gang and is believed to have over 250 documented members, as well as hundreds of associates. According to court documents, Armenian Power members and associates regularly carry out violent criminal acts, including murders, attempted murders, kidnappings, robberies, extortions, and witness intimidation in order to enrich its members and associates and preserve and enhance the power of the criminal enterprise.
The defendants who pleaded guilty this week are scheduled to be sentenced by Judge Pregerson beginning on November 25. At sentencing, Yerkanyan faces a maximum penalty of 102 years in prison. Tangabekyan faces a maximum penalty of 52 years in prison. Tarverdyan faces a maximum penalty of 50 years in prison. Ananian faces a maximum penalty of 30 years in prison. Pembejian and Davoodian each face a maximum penalty of 20 years in prison. And Antonyan and Arakelyan each face a maximum penalty of two years in prison.
Fifty-one other defendants have previously pleaded guilty in the racketeering case.
This case is being prosecuted by the United States Attorney’s Office in Los Angeles and the Department of Justice’s Organized Crime and Gang Section.
The case was investigated by the Eurasian Organized Crime Task Force, which is comprised of the Federal Bureau of Investigation, the United States Secret Service, the Los Angeles Police Department, the Glendale Police Department, the Burbank Police Department, the Internal Revenue Service - Criminal Investigation, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
In addition to the racketeering indictment targeting Armenian Power, federal authorities in 2011 obtained a second indictment that was filed in Orange County. The case charged 22 defendants (two of whom were also charged in the racketeering indictment). Similar to some of the schemes alleged in the racketeering indictment, the Orange County case alleges that AP members, working in conjunction with members of African-American street gangs, engaged in a bank fraud scheme that targeted elderly victims and caused losses of at least $10 million. All of the defendants charged in that case have been convicted, with two of them already receiving sentences of 25 years in federal prison.
Release No. 13-114
East St. Louis Man Sentenced to Prison for Possession of A Firearm by A Convicted FelonRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that an East St. Louis, Illinois, man was sentenced on September 9, 2013, to a prison term in federal court for possession of a firearm by a convicted felon.
Leon Johnson, 24, was sentenced in federal court in East St. Louis to 48 months in prison, to be followed by 3 years of supervised release, a $100 special assessment, and a fine of $200, following his plea of guilty, on May 20, 2013, to an Indictment charging him with Possession of a firearm by a Convicted Felon. The charge relates to an incident that occurred on June 5, 2012, in East St. Louis, Illinois, when law enforcement agents conducted a search of a residence pursuant to an arrest warrant. When agents proceeded to the basement of the residence, they observed Johnson lying on the couch. As the agents approached Johnson, they stepped on a fully loaded semiautomatic firearm, underneath some clothing and within one foot of Johnson. Johnson was previously convicted of aggravated unlawful use of a weapon on March 2, 2010 in St. Clair County, Illinois. The sentencing judge also ordered forfeiture of the firearm.
The case resulted from the efforts of the WAVE (Working Against Violent Elements) Task Force, which focuses its efforts on combating violent crime in East St. Louis, Washington Park, and surrounding communities. The WAVE Task Force receives financial support through the Department of Justice’s Project Safe Neighborhoods (PSN) initiative, a nationwide federal program which endeavors to address gun-related violence.
The case was investigated by members of the WAVE Task Force, the United States Marshals Service, the Illinois State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Special Assistant United States Attorney Jungmin Lee.
East St. Louis Man Sentenced to Prison for Possession of A Firearm by A Convicted FelonRead the Press Release
Jonathan Spearman, 37, of East St. Louis, IL, was sentenced on September 9, 2013, in federal court in East St. Louis on one count of being a felon in possession of a firearm, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Spearman was sentenced to 37 months in prison, to be followed by 2 years of supervised release, a $100 special assessment, and a fine of $200. Spearman had previously pled guilty on April 4, 2013, to an Indictment charging him with Possession of a firearm by a Convicted Felon. The charge relates to an incident that occurred on December 29, 2012, in East St. Louis, Illinois, when an East. St. Louis police officer found a firearm in Spearman’s vehicle. Spearman was previously convicted of unlawful possession with intent to distribute cannabis on June 27, 2012 and of unlawful possession of a controlled substance on July 17, 2002, both in St. Clair County, Illinois. The sentencing judge also ordered forfeiture of the firearm.
The case was investigated by members of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the East St. Louis Police Department. The case was prosecuted by Special Assistant United States Attorney Jungmin Lee.
EOIR Headquarters Announces New 20530 Zip CodeRead the Press Release
Beginning on Oct. 1, 2013, all mail addressed to the Executive Office for Immigration Review’s (EOIR) Headquarters in Falls Church, VA, will be processed through a different mail processing facility. This facility change requires that EOIR use a new zip code. The street address of 5107 Leesburg Pike, Falls Church, VA, will remain the same, but the zip code will change from 22041 to 20530. The new mailing address is:
Department of Justice
Executive Office for Immigration Review
5107 Leesburg Pike
Falls Church, VA 20530-0001Mail and filings for the Office of the Chief Administrative Hearing Officer should be addressed to:
Office of the Chief Administrative Hearing Officer
5107 Leesburg Pike, Suite 2519
Falls Church, VA 20530-0001The Board of Immigration Appeals will no longer maintain a Post Office Box and will only accept mail sent to its street address. All Board filings and correspondence should be addressed to:
Board of Immigration Appeals
Office of the Chief Clerk
5107 Leesburg Pike, Suite 2000
Falls Church, VA 20530-0001Mail addressed with the zip code 22041 after Oct. 1, 2013, may result in delayed delivery to all Headquarters EOIR offices.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration ReviewDrug Smuggler SentencedRead the Press Release
PHILADELPHIA - Naman Bader, aka “John C. Koshy,” 34, of Philadelphia, was sentenced today to 12 months in prison for smuggling and illegally distributing more than two million prescription pills, such as Xanax, Valium, Phentermine, Ativan, Klonopin, Ambien, and their generic equivalents, valued at approximately $10,310,406. Additionally, approximately 25,000 counterfeit Viagra and Cialis pills were seized in international mail parcels during the course of the investigation. Bader pleaded guilty on September 5, 2012, to conspiracy to possess controlled substances with the intent to distribute and to receive merchandise brought into the United States contrary to law and distribution of a controlled substance in a school zone.
Between February 2011 and October 2011, Bader participated in a conspiracy to import and distribute pharmaceutical controlled substances. He received bulk shipments of pills from overseas, delivered some of the pills to conspirators to repackage for customer orders, and forwarded other boxes of bulk pills to other conspirators across the county. Bader also shipped pills to people who had placed orders over the internet without prescriptions. Bader conducted some of this business using a mail box at a commercial mailbox store on Castor Avenue in Philadelphia.
In addition to the prison term, U.S. District Court Judge Jan E. DuBois ordered Bader to pay a special assessment of $200, and ordered three years of supervised release.
Bader’s co-conspirator, Rehan Shah, was sentenced on December 5, 2012, to 15 months in prison.
This case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations, the Food and Drug Administration - Office of Criminal Investigations, and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorney Albert S. Glenn.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Dallas Man Sentenced to 15 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
Defendant to Be Deported Following Incarceration
DALLAS — Eulises Abraham Nava-Romero, 26, was sentenced this morning by U.S. District Judge Ed Kinkeade to 180 months (15 years) in federal prison and a lifetime of supervised release, following his guilty plea in February 2013 to one count of receipt of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Nava-Romero has been in federal custody since his arrest in January 2013 on a related federal felony criminal complaint following the execution of a federal search warrant at his home in Dallas by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). He will be referred for deportation proceedings following his incarceration.
According to documents filed in the case, Nava-Romero admitted knowingly downloading and receiving images of child pornography from the Internet onto his home computer in March and September 2012.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI investigated; Assistant U.S. Attorney Camille Sparks prosecuted.
Collin County Man Sentenced for Customs ViolationsRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 44-year-old Chinese national living in Plano, Texas has been sentenced for customs violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Shichen Wang pleaded guilty on Feb. 14, 2013 to the misdemeanor offense of negligent attempted transportation of wildlife sold in violation of law and was given an 11 month probated sentence on Sep. 10, 2013, by U.S. Magistrate Judge Amos L. Mazzant.
According to information presented in court, on April 19, 2011, Wang attempted to ship two elephant ivory carvings, daffodil flowers and a cylinder brush pot, in two separate packages that were addressed to two different locations in the Republic of China. Both of the packages were falsely labeled to describe their contents as “wood carvings” which is a violation of federal laws that protect specified species of wildlife. The packages were intercepted by wildlife inspectors who were inspecting International Express Mail packages that were consigned for export from the United States. Wang was also fined $3,000 and must forfeit the seized carvings to the government.
"One of the primary objectives of the U.S. Fish and Wildlife Service is to combat the international smuggling of wildlife from the U. S.,” said Southwest Region’s Special Agent in Charge Nicholas Chavez. “This seizure was a great example of a multi-agency interdiction effort by the U.S. Fish and Wildlife Service, Office of Law Enforcement and the U. S. Customs and Border Protection.”
This case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, Fort Worth, and Rosemont, Illinois Office along with the U.S. Customs and Border Protection, Rosemont, Illinois Office and prosecuted by Assistant U.S. Attorney Jim Noble.
The mission of the U.S. Fish and Wildlife Service is working with others to conserve, protect, and enhance fish, wildlife, plants, and their habitats for the continuing benefit of the American people. It is both a leader and trusted partner in fish and wildlife conservation, known for its scientific excellence, stewardship of lands and natural resources, dedicated professionals, and commitment to public service. For more information on its work and the people who make it happen, visit www.fws.gov . Connect with its Facebook page at www.facebook.com/usfws , follow its tweets at www.twitter.com/usfwshq , and download photos from its Flickr page at http://www.flickr.com/photos/usfwshq .Christopher Michael Vaughan Sentenced to 420 Months for Armed RobberiesRead the Press Release
GREENEVILLE, Tenn. – Christopher Michael Vaughan, 37, of Bristol, Tenn., was sentenced to serve a total of 420 months in prison, by the Honorable J. Ronnie Greer, U.S. District Judge, on Sept. 11, 2013. Upon his release from prison, he will be subject to supervised release for five years. Vaughan was further ordered to pay restitution to the victims of his crimes.
Vaughan pleaded guilty in April 2013 to the February 2013 armed robberies of a Scotchman convenience store, a Roadrunner convenience store, and Belmont Package store, all in Bristol, Tenn. Vaughan also pleaded guilty to a February 2013 armed bank robbery of the New Peoples Bank in Bristol, Va.
Federal law mandates a seven year minimum mandatory sentence for brandishing a firearm in the commission of a violent offense, with each additional offense of possession of a firearm in the commission of a violent offense carrying a 25 year minimum mandatory sentence.
“Serious federal sentences are intended for the most violent criminals in our society. These city police departments, the FBI and AUSA Greg Bowman are to be congratulated for this successful prosecution,” said U. S. Attorney Bill Killian.
Law enforcement agencies participating in the joint investigation included the Bristol Tennessee Police Department, Bristol Virginia Police Department, and Federal Bureau of Investigation. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Camillus Man Sentenced in Pipe Bomb CaseRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced today that a Camillus man has been sentenced for his role in building and possessing a pipe bomb.
MICHAEL LaVALLEE, age 22, was sentenced by Senior United States District Judge Norman A. Mordue in Syracuse. LaVALLEE was sentenced to 24 months imprisonment, and ordered to participate in substance abuse and mental health programs. LaVALLEE will also serve three years of supervised release following his release from incarceration.
MICHAEL LaVALLEE pled guilty on April 1, 2013 to unlawfully possessing an unregistered firearm, specifically, a pipe bomb wrapped with shrapnel. LaVALLEE admitted that on or about August 12, 2012, he possessed and stored in his apartment in Camillus a pipe bomb he had built. The pipe bomb was composed of a length of metal pipe sealed at each end, with one end containing a hole for a fuse and loaded with explosive material. The pipe bomb was surrounded by metal nails acting as shrapnel, which were wrapped around the device with duct tape. LaVALLEE further admitted that the device was not registered to him in the National Firearms Registration and Transfer Record.
The pipe bomb was discovered and rendered safe by law enforcement officers and bomb squad technicians.
The case was investigated by the Camillus Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. The case was prosecuted by Assistant United States Attorney Stephen C. Green.
California Man Sentenced on Use of Interstate Facilities to Transmit Information About A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Banning, California, man convicted of Use of Interstate Facilities to Transmit Information about a Minor was sentenced on September 10, 2013, by U.S. District Judge Roberto A. Lange.
Thomas Tatar, age 27, was sentenced to 60 months of imprisonment, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Tatar was indicted by a federal grand jury in November of 2012. He pled guilty to a Superseding Information on June 13, 2013.
Tatar’s conviction relates to incidents that occurred on March 27, 2012, and May 15, 2012, when Tatar, who was living in California, used the internet to meet a minor who was living in South Dakota. During the course of their internet “friendship,” Tatar attempted to solicit sexual activity from the minor girl, and also used the internet to attempt to receive sexually explicit images from her. As this investigation was commencing, Tatar was also investigated by California authorities and convicted in California state court of a separate offense of Bringing into the State of California Matters Depicting Child Sex. On March 13, 2013, Tatar received a 2 year prison sentence for the California offense.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Tim Maher prosecuted the case.
Tatar was immediately turned over to the custody of the U.S. Marshals Service.Business Owner Pleads Guilty to Federal Tax Charge, Failed to Report Income His Company Received for Work It Provided During the 2008 Presidential Election Cycle Company Received More Than $600,000 in Corporate Money for Providing Services in Support of ARead the Press Release
WASHINGTON – Troy White, the owner of a marketing company based in New York, pled guilty today to a federal tax charge stemming from his failure to file corporate income tax returns over several years, including failing to report more than $600,000 his company received for services it provided in support of a 2008 presidential campaign.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr., Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI) and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
White, 48, of New York, N.Y., pled guilty in the U.S. District Court for the District of Columbia to one count of failing to file corporate income tax returns for Wytehouse from 2008 through 2011. The Honorable Colleen Kollar-Kotelly scheduled a status hearing for Dec. 16, 2013. The charge carries a statutory maximum of one year of imprisonment and financial penalties. As part of the plea agreement, White has agreed to cooperate in a continuing investigation.
According to a statement of offense, signed by the defendant as well as the government, during the relevant time period of the offense, White was the sole owner and operator of Wytehouse Marketing, Inc., a for-profit corporation registered in New York. The company provided marketing services to various clients, including political campaigns, with an emphasis on marketing in urban areas through the use of “street teams.”
During a period that spanned over its 2007 and 2008 fiscal years, Wytehouse received approximately $608,750 in gross receipts related to services it provided in support of a 2008 presidential campaign. The money, however, did not come from the campaign but was funneled to Wytehouse through a corporation in the District of Columbia named Belle International, Inc. from companies tied to a private individual, identified in the court filings as “Executive A.”
“Today’s guilty plea reveals for the first time a secret effort to funnel $600,000 in corporate money into the 2008 presidential primary campaign in a number of states,” said U.S. Attorney Machen. “We are grateful to Mr. White for quickly acknowledging his role in that effort and taking responsibility for his actions. Our investigation into this matter is continuing.”
“All income is taxable, whether earned at the local convenience store or for work done on a national election,” said Special Agent in Charge Kelly. “IRS-CI is focusing investigative efforts on individuals and entities who contribute to the tax gap, regardless of the business they conduct. We, along with our law enforcement partners at the U.S. Attorney’s Office and the FBI, will continue to identify those that do not comply with the law and circumvent the legal process.”
“Today, Mr. White took responsibility for failing to file federal tax returns for more than $600,000 in earnings received for services provided in support of a presidential campaign,” said Assistant Director in Charge Parlave. “Together with our law enforcement partners at the IRS, the FBI will work to ensure that those who attempt to exploit our democratic process for their own profit and those who choose to evade tax laws will be held accountable for their actions.”
The statement of offense details activities by White and others, including:
-A campaign identified as “Campaign-1,” a political committee whose candidate was running for President of the United States during the 2008 federal primary election cycle.
-A person identified as “Individual A,” a resident of the District of Columbia who was affiliated with the campaign during the 2008 federal primary election cycle.
-A person identified as “Executive A.”
-A firm identified as “Company A.” This was a company, owned and operated by “Executive A,” that provided accounting, management, consulting, and tax services.
-A firm identified as “Company B.” This was a company that served as a holding company for other companies owned by “Executive A.”
-Belle International, Inc., a corporation based in the District of Columbia.
According to the statement of offense, in January 2008 White marketed Wytehouse to ”Campaign-1” in an effort to have the campaign pay for “street team” services during the 2008 federal primary election cycle. A series of e-mails followed, with the correspondence including White, a senior official with “Campaign-1”, and “Individual A.” On Jan. 29, 2008, the senior campaign official informed White and “Individual A” that “Campaign-1” would not be able to use Wytehouse’s street teams. Two days later, White sent a follow-up e-mail to the senior campaign official and “Individual A,” once again offering the company’s services. Later that day, “Individual A” wrote back and promised to fight on the company’s behalf to get the work.
In or about February 2008, “Individual A” introduced White to “Executive A,” who “Individual A” described as a business owner in the District of Columbia who wanted to organize an effort to support “Campaign-1”. “Executive A” and White agreed that “Executive A” would pay White to provide street team services in support of “Campaign-1” during the Texas federal primary and caucus election. The paid street team workers and canvassers then began disseminating and distributing “Campaign-1’s” prepared materials.
Following the Texas federal primary and caucus election, “Executive A” agreed to continue financing Wytehouse’s paid street team workers in support of “Campaign-1” during several upcoming federal primary elections, and the efforts continued.
All told, from in our about February 2008 through and including in or about May 2008, Wytehouse received approximately $608,750 from Belle International to support “Campaign-1’s” efforts during several federal primary elections. During this same period, Belle International received approximately $611,500 from “Company A” and “Company B.”
According to the statement of offense, White failed to file Wytehouse’s Form 1120 corporate income tax return with the IRS for its 2007 and 2008 fiscal years, which would have included gross receipts that Wytehouse was paid for its work in support of “Campaign-1” during the 2008 federal primary election cycle. White also failed to file Wytehouse’s Form 1120 corporate income tax returns with the IRS for the 2009 and 2010 fiscal years.
In announcing the plea, U.S. Attorney Machen, Special Agent in Charge Kelly, and Assistant Director in Charge Parlave commended those who investigated the case from IRS-CI and the FBI’s Washington Field Office.
They also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Jonathan W. Haray, Ellen Chubin Epstein, Lionel André, Jonathan Hooks and Ted L. Radway; former Assistant U.S. Attorney Mary Chris Dobbie, and Paralegal Specialists Anne Riopelle, Shanna Hays, Krishawn Graham, Lenisse Edloe, Nicole Wattelet, Corinne Kleinman, and Angela Lawrence.
Finally, they acknowledged the efforts of Assistant U.S. Attorneys Loyaan A. Egal and Ephraim (Fry) Wernick, who are prosecuting the case.
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Brownwood, Texas, Man Admits Enticing A Minor Child to Engage in Sexual ActivityRead the Press Release
AMARILLO, Texas — Luis Gerardo Alvarado, 22, appeared in federal court yesterday afternoon, before U.S. District Judge Mary Lou Robinson, and pleaded guilty to one count of enticement of a minor and aiding and abetting. While a sentencing date was not set, Alvarado, who is in custody, faces a maximum statutory penalty of not less than 10 years and up to life in federal prison, a $250,000 fine and a lifetime of supervised release. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, while living in Brownwood, Texas, Alvarado met a minor female, who lived in Coleman County, Texas, by contacting her through Facebook chat. From mid-March 2013 until April 8, 2013, Alvarado communicated with the minor female and attempted to persuade and entice her to engage in sexual activity with him. Alvarado knew the minor female was under 17 years of age.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Coleman Police Department, the Santa Anna Police Department and the Brownwood Police Department. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Brothel Operator Sentenced to over 19 Years in Prison on Sex Trafficking ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Kevin Garcia Fuertes, a/k/a Kerlin Esquivel-Feuntes, age 26, a citizen of Honduras and an illegal alien residing in Annapolis, Maryland, and Richmond, Virginia, late yesterday to 235 months in prison followed by five years of supervised release for conspiring to transport and entice females to travel interstate for prostitution and sex trafficking by force and fraud. Judge Quarles further imposed a special condition that upon the completion of his sentence, Fuertes must cooperate with immigration authorities regarding deportation proceedings.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Chief Michael Pristoop of the Annapolis Police Department; Easton Police Department Chief David A. Spencer; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
“Today's sentencing represents another successful HSI investigation worked jointly with our local law enforcement partners that led to the breakup of a prostitution scheme uncovered in Maryland,” said HSI Baltimore Special Agent in Charge William Winter. “The defendants not only exploited women for personal profit, they also used violence, coercion and intimidation. HSI will continue to use its resources and work closely with other law enforcement agencies to stop these types of criminal enterprises that are operating in our communities.”
According to evidence presented during his two week trial, since at least March 2008 through November 2010, Fuertes and co-defendant German de Jesus Ventura, ran brothels in Annapolis and Easton, Maryland. Ventura, the ringleader, employed Fuertes to advertise and manage the brothels, and the two men shared the cash proceeds of the prostitution business. The defendants recruited and employed prostitutes, many of whom were aliens present in the U.S. unlawfully. Ventura arranged for vans and other vehicles to transport females within Maryland and across state lines to engage in prostitution. Ventura assaulted and threatened to use violence against one prostitute to coerce her continued participation in prostitution; threatened to use violence against competitor pimps; and sought to intimidate others who assisted his prostitutes. Fuertes knew of and financially benefitted from Ventura’s actions.
German de Jesus Ventura, age 35, a citizen of El Salvador and an illegal alien residing in Capitol Heights, Maryland, was also convicted at trial and faces a maximum sentence of five years in prison for the conspiracy count; a mandatory minimum of 15 years in prison to a maximum of life in prison for the sex trafficking count; a maximum of life in prison for possessing a gun in furtherance of sex trafficking; and 10 years in prison each for transporting individuals to engage in prostitution and for enticement. Ventura is scheduled to be sentenced on October 1, 2013 at 1:00 p.m.
Jose Antonio Reyes-Maradiaga, age 30, of Annapolis; and Isidro Jiminez-Sanchez and Wibert Alejandro Herrera-Aranda, both age 34 and from Easton, Maryland, previously pleaded guilty to their participation in the scheme. These defendants advertised Ventura’s brothels, made appointments for the prostitutes and collected money. Reyes also helped to transport the women to the brothel locations, and purchased supplies. Jiminez-Sanchez, a Mexican citizen who entered the United States illegally, was sentenced to a year and day for transporting prostitutes, and upon completion of his sentence, was deported from the U.S. to Mexico. Herrera-Aranda was sentenced to 18 months in prison and Reyes was sentenced to time served. Both were also deported.
This case originated with the Annapolis Police Department and was subsequently investigated by members of the Maryland Human Trafficking Task Force formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit www.justice.gov/usao/md/Human-Trafficking/index.html.
United States Attorney Rod J. Rosenstein praised the Annapolis and Easton Police Departments and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys P. Michael Cunningham and Rachel M. Yasser, who prosecuted the case.
Batesville Man Under Federal Indictment for Setting Fire to State Probation OfficeRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; and Grover Crossland, Resident Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) - Little Rock Field Office; announced that Douglas McArthur Adams, III, age 51, of Batesville, was indicted today by a federal grand jury on one count of malicious use of fire for attempting to destroy the Arkansas Department of Community Correction building in Batesville (DCC-Batesville).
"This senseless act now has Adams facing federal charges," stated Thyer. "Thankfully, the local law enforcement and fire department were cognizant of preservation of the crime scene in their response to the fire. Together with the Arkansas State Police and ATF investigators, the evidence was presented to my office resulting in our indictment today. Law enforcement officers, including probation officers, put their lives at risk every day to keep our streets safe. It is imperative that they know the full weight of the law is here to support them in their mission."
According to a search warrant issued in this case, Adams had been on release from state charges for possession of methamphetamine and violation of a protective order with a requirement that he report for drug testing. On June 6, 2013, he reported for a screening and presumptively tested positive for meth. A record was made of this screening and the sample was preserved for further analysis.
On June 10, 2013, at about 1:55 a.m., a motion detector in the DCC-Batesville office was triggered. Upon arrival at the DCC-Batesville office, Batesville Police Officers saw that the rear entrance glass door was broken and the building was on fire. The Batesville Fire Department was called and responded to extinguish the fire.
Evidence gathered at the scene indicated the fire appeared to have started in a room adjacent to the refrigerator used to store drug-testing urine samples. Investigators reported an accelerant such as gasoline had been poured on the floor. Surveillance video showed a white Ford truck with features similar to one Adams drives, slowly driving by the DCC-Batesville office at approximately 1:54 a.m. the morning of the fire.
On June 11, 2013, Adams was arrested on a revocation bond for testing positive for meth. Evidence collected at the time of Adams' arrest and additional evidence analyzed by the by the Arkansas State Crime Lab tied Adams to the crime scene resulting in this federal charge of arson. Adams remains in custody. The date for his initial appearance hasn't yet been set by the court.
If convicted, Adams faces a possible sentence of not more than 20 years incarceration and/or $250,000 fine with not more than 3 years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives in conjunction with the Arkansas State Police, Independence County Sheriff's Office, Batesville Police Department, Batesville Fire Department. The case is being prosecuted by Assistant United States Attorney Mike Gordon.
An indictment contains only allegations. The defendant is presumed innocent unless and until proven guilty.
Bank Robber Sentenced to 63 Months in PrisonRead the Press Release
EUGENE, Ore. – Christopher Franklin Weaver, 34, of Lane County, Oregon, was sentenced today by U.S. District Chief Judge Ann Aiken to 63 months in prison for three counts of bank robbery. Upon his release from prison defendant will be on supervised release for three years.
On November 5, 2012, defendant robbed the Wells Fargo Bank on Polk Street in Eugene, Oregon. Nine days later, on November 14th, defendant robbed the U.S. Bank on West 7th Street in Eugene. On November 29th, defendant robbed the Pacific Continental Bank on High Street in Eugene. He was arrested shortly after the robbery and the money he stole was recovered on his person.
This case was investigated by the Federal Bureau of Investigation and the Eugene Police Department and was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.
Bank President Charged with Failure to Comply with Requirements of the Bank Secrecy ActRead the Press Release
H. Jack Miller, 51, of Boca Raton, Florida, was charged by information, filed on September 5, 2013, with one count of willful failure to maintain an effective anti-money laundering program and one count of willful failure to file a suspicious activity report, announced United States Attorney Zane David Memeger.
Miller was president and CEO of Public Savings Bank (PSB), a private, closely-held corporation. PSB had one branch office located in Huntingdon Valley, PA. As a financial institution, PSB was subject to the requirements of the Bank Secrecy Act (BSA), which was enacted to prevent financial institutions from being used as intermediaries in the movement of money derived from criminal activity. According to Count One of the information, Miller, who controlled all operations at the bank, failed to establish an effective anti-money laundering program, which included the appointment of a competent BSA compliance officer and the implementation of policies and procedures to protect against money laundering. He is also charged in Count Two with failing to file a Suspicious Activity Report in connection with a wire transmission of approximately $86,400, which occurred on March 25, 2010. The money was transferred into the account of a foreign account holder whom Miller and other PSB employees allegedly suspected was operating an unlicensed money transmission business.
If convicted, the defendant faces a maximum possible sentence of 10 years imprisonment, 3 years of supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by Homeland Security Investigations, FDIC Office of the Inspector General and the Internal Revenue Service and is being prosecuted by Assistant United States Attorney Terri A. Marinari.
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PATTY HARTMAN, Media Contact, 215-861-8525Aurora Man Sentenced to Nine Months in Federal Prison for Sexual Contact with Female Passenger Aboard Flight to ChicagoRead the Press Release
CHICAGO ― An Aurora man was sentenced today to nine months in federal prison for sexually groping the inner thigh of a Chicago area woman while they were seated next to each other aboard an airplane from Las Vegas to Chicago in June 2011. The defendant, SRINIVASA S. ERRAMILLI, who was convicted of abusive sexual contact by a federal jury last December, has two previous convictions for nearly identical crimes.
Erramilli, 46, a software consultant, was fined $5,000 and placed on court supervision for a year after he is released from custody by U.S. District Judge Joan H. Lefkow. The judge set a hearing for next Wednesday on the government’s request to revoke Erramilli’s bond. He is prohibited from airline travel while he is on supervised release and he is subject to deportation to India after being released from custody.
Erramilli’s advisory federal sentencing guidelines was found by the judge to be 10 to 16 months in custody. The judge said she would have imposed a 13-month sentence but reduced that by four months to give Erramilli credit for the time he spent in immigration custody following the assault.
Judge Lefkow agreed with the government that a custodial sentence was necessary to deter Erramilli and others from invading an individual’s bodily integrity and also to ensure that victims of abusive sexual contact will be heard and given protection.
Evidence at the trial showed that Erramilli was the last passenger to board a Southwest Airlines flight to Chicago’s Midway Airport on June 14, 2011, and was seated in the only open seat available between the victim, who had chosen a window seat to sleep during the flight, and her husband, who had chosen an aisle seat to enable easier access during the flight. The couple had traveled to Las Vegas for their 34th wedding anniversary.
The victim, now 65, who was wearing shorts during the flight, testified that Erramilli groped her three times aboard the plane. The first time she awoke to feeling something brush against her thigh; the second time, she testified that she awoke to feeling “pressure” on her thigh. The third time, the victim testified that Erramilli placed his hand up the leg of her shorts and then rubbed and grabbed her inner thigh. She struck Erramilli and yelled at him after realizing that he had been groping her. Other passengers and flight attendants also testified during the trial.
The jury also heard testimony from another victim who was seated in the row in front of Erramilli when he fondled her breast on a flight from Detroit to Chicago in August 1999. Erramilli pleaded guilty to battery in Cook County in 2000 and was sentenced to two years’ probation and five days’ community service. In 2002, Erramilli was sentenced in Federal Court in Detroit to three years’ probation after he was convicted of abusive sexual contact for groping the breast of yet another woman aboard a flight from San Jose, Calif., to Detroit.
The government was represented by Assistant U.S. Attorneys Bolling W. Haxall and Heather K. McShain.
The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Robert J. Shields, Jr., Acting Special- Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Chicago Police Department assisted in the investigation.
Atlanta Man Found Guilty of Human Trafficking and Production of Child PornographyRead the Press Release
Jackson, Miss - Marco Laquin Rogers, age 27, of Atlanta, Georgia, was found guilty in U.S. District Court today to human trafficking of a minor child and the production of child pornography, announced U.S. Attorney Gregory K. Davis, Raymond R. Parmer, Jr., Special Agent in Charge of Homeland Security Investigations in New Orleans, and Commissioner Robert C. Haas of the Cambridge, Massachusetts Police Department.
Following a two-day trial, Rogers was found guilty of traveling to Mississippi for the purpose of engaging in sexual intercourse with a child under the age of 10 years old. He was also found guilty of producing videos of himself engaging in sexually explicit conduct with the child.
The investigation of this case began when the Cambridge, Massachusetts Police Department received information about a video tape of illegal sexual activities and the production of videos depicting the sexual assault of a child. The Cambridge Police Department contacted the Department of Homeland Security (“HSI”) in Atlanta and the Georgia Bureau of Investigation who worked with HSI in Jackson to conduct further investigation. The collaborative efforts of HSI agents and investigators in Cambridge, Atlanta, Memphis and Jackson ultimately led to the identification of the minor child in the videos, who is now safe with her family.
“The safety and well-being of young children is a high priority for the Department of Justice,” said U.S. Attorney Davis. “Our office will continue to aggressively prosecute these cases to protect the vulnerable and innocent victims of such crimes.”
“This particular case could have persisted over a period of time if it wasn’t for how our investigators pursued what appeared to be a local crime. Working with our federal partners led to the resolution of this horrific act that seemingly has no jurisdictional restrictions. We have been fortunate to have such close ties with our federal partners, without which this criminal may not have been brought to justice,” said Commissioner Robert C. Haas of the Cambridge Police Department.
“The horrific abuse inflicted upon a defenseless child in this case is unspeakable, and yet this individual went even further by recording and sharing the evidence of his sexual crimes,” said HSI New Orleans Special Agent in Charge Raymond R. Parmer Jr. "Predators destroy lives, and HSI will continue to do everything it can to protect children by investigating and seeking prosecution wherever these criminals may be found." Parmer oversees a five-state region including Louisiana, Alabama, Arkansas, Mississippi and Tennessee.
Rogers will be sentenced on December 12, 2013 by U.S. District Judge David Bramlette III in Jackson. The penalty for human trafficking of a minor child is not less than 15 years and up to life in prison. The maximum penalty for production of child pornography is 30 years in prison and a $250,000 fine.
U.S. Attorney Davis praised the efforts of the investigative agencies who worked this case and Assistant U.S. Attorneys Glenda Haynes and Scott Gilbert who tried the case for the government.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to 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.
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###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Assistant U.S. Attorney from the Middle District of Alabama Receives Attorney General’s AwardRead the Press Release
Montgomery, Alabama - The Justice Department awarded Assistant U. S. Attorney Todd A. Brown the Attorney General’s Award for Fraud Prevention announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. This award recognizes exceptional dedication and effort to prevent, investigate, and prosecute fraud, white collar crimes, and official corruption.
“I am very pleased that the extraordinary success of AUSA Brown and his team are receiving the recognition they truly deserve,” stated U.S. Attorney George Beck, “I believe it is essential that these type of crimes be vigorously prosecuted and that taxpayer funds be swiftly recovered when individuals attempt to profit illegally from the hard work and sacrifice of others.”
This year’s award is presented to the investigation and prosecution team members who were responsible for combating the growing epidemic of identity theft, tax fraud, and white collar crimes in the Middle District of Alabama. According to the Federal Trade Commission, in 2011, the number of identity theft complaints from the Montgomery area ranked second in the entire nation, trailing only Miami. However, thanks in great part to the efforts of AUSA Brown and his team, in 2012 Montgomery fell several spots to number 16 on the list.
“This is not an individual award,” states AUSA Todd Brown, “quite the contrary, this award recognizes the tremendous work performed not only by our office, but also the DOJ Tax Division, and very dedicated law enforcement agencies, especially the IRS. Victims of identity theft and tax fraud should be extremely pleased with the tireless efforts of the agents assigned to combat these crimes in the Middle District of Alabama.”
Other award recipients from the team include Assistant Chief Larry J. Wszalek, and Trial Attorneys Michael C. Boteler, Charles M. Edgar, Jr., Justin K. Gelfand, and Jason H. Poole, all from the Department of Justice’s Tax Division.
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Telephone: (334) 551-1755
Fax: (334) 223-7617Alton Woman Pleads Guilty to Health Care FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 11, 2013, Roslyn James, 46, of Alton, IL, pled guilty to a one-count indictment charging that she engaged in a scheme to commit health care fraud. At her sentencing James will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release. Sentencing has been set for January 10, 2014, at 11:00 a.m. in United States District Court in East St. Louis, Illinois.
During her plea hearing, James admitted that she had submitted false and fraudulent bills in relation to the providing of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead entering a nursing home. James admitted that she falsely billed the program for over $50,000 for services that were supposed to have been provided to her son. In reality, the person who James claimed as having provided the services lived in the State of California.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General; Illinois State Police; and the St. Clair County Sheriff’s Department. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian and William E. Coonan.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General or call 1-800-447-8477.
Alexandria Man Pleads Guilty to Access Device FraudRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that John B. Sommers, 28, of Alexandria, pleaded guilty Tuesday before U.S. District Judge Dee D. Drell to access device fraud resulting from unauthorized purchases of $90,650.According to evidence presented at the guilty plea, between November 9, 2010 and December 21, 2011, Sommers made unauthorized and fraudulent use of access devices, which included credit cards for the U.S. Bureau of Prisons in Oakdale, La. Sommers worked as a manager for Ralph’s Electronics, an electrical supply company in Alexandria. As part of his scheme, Sommers set up a separate account under his control, but bearing the name of his employer. He then made fraudulent charges on a number of unauthorized access devices. It appeared that his employer was making the purchases when in fact the purchases were Sommers’. Sommers illegally purchased $90,650 worth of merchandise.
The Federal Reserve defines an access device as a card, code or other means of access to a consumer’s account or a combination of these used by the consumer to initiate Electronic Fund Transfers (EFT). Access devices include debit cards, personal identification numbers (PINs), telephone transfer and telephone bill payment codes, and other means to initiate EFT or to form a consumer account.
Sommers faces up to 15 years in prison, a $250,000 fine and three years of supervised release. A sentencing date of December 12, 2013 was set.
The U.S. Secret Service and the U.S. Bureau of Prisons conducted the investigation. Assistant U.S. Attorney Howard C. Parker is prosecuting the case.
Administrator of Student Health Insurance for Virginia Tech Pleads GuiltyRead the Press Release
ABINGDON, VIRGINIA – United States Attorney Timothy J. Heaphy announced today that GM-Southwest Inc., and the company’s CEO and former owner, have pled guilty to charges of racketeering and money laundering.
In a 57-count indictment filed April 8, 2013, John Paul Gutschlag Sr., 73, of Aubrey, Texas and GM-Southwest Inc., were charged with racketeering, wire fraud, mail fraud, money laundering and conspiracy charges. Today in District Court, Gutschlag pled guilty to one count of conspiracy to violate the Racketeering Act and two counts of money laundering by engaging in monetary transactions involving property derived from wire and mail fraud. In addition, GM-Southwest, through its corporate counsel, pled guilty to the same three charges.
“Mr. Gutschlag and GM-Southwest bilked Virginia Tech and thousands of the university’s students out of more than a million dollars,” United States Attorney Timothy J. Heaphy said today. “This conspiracy was sophisticated and wide-ranging and caused considerable harm to its victims. In an age where health care costs are rising for each and every American, the Department of Justice will do everything possible to identify and prosecute waste, fraud and abuse in the health care delivery system.”
“Healthcare is a very important issue for students, parents and the public. Mr. Gutschlag and GM-Southwest’s conspiracy negatively impacted thousands of students who depended on them to provide a very important service,” said Thomas J. Kelly, Special Agent in Charge of the IRS-Criminal Investigation, Washington DC Field Office. “IRS-CI will continue to work closely with the US Attorney’s Office to investigate corporate fraud and to hold corporations and executives accountable for complying with the law.”
According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Anthony Giorno, GM-Southwest was in the business of collecting health insurance premiums from students and universities, paying claims and providing reports related to the premium collection and claims payment both to the university and the carriers. The carriers, in turn, paid GM-Southwest a set commission or fee, typically a percentage of the gross premium collected. From August 2003 through the end of the 2010-2011 school year, GM-Southwest, under the direction of Gutschlag, provided student health insurance for Virginia Tech’s undergraduate and graduate students.
Today in District Court, the defendants admitted that beginning in 2005, Gutschlag, and others, devised a scheme to defraud colleges and universities by providing false and fraudulent claims reports and other misrepresentations designed to increase the income of GM-Southwest and to personally enrich Gutschlag. They did this by devising and utilizing a “claims modifier” to alter the claims numbers to produce an inflated dollar amount which overstated the claims paid and loss ratios, causing students and Virginia Tech to pay significantly higher premium costs.
Gutschlag and GM-Southwest admitted to overstating the amount of claims paid on behalf of Virginia Tech by over $1 million from 2003-2004 through the 2009-2010 academic years. The plea agreement provides for restitution to Virginia Tech and the students in the amount of $1.2 million and forfeiture of an additional $1.2 million to the government. The defendants agreed that the restitution figure agreed to by the government would not prevent Virginia Tech or the students from seeking additional restitution through the civil courts.
In a related matter, in July 2013, James Lane, of Botetourt, Va., entered into a deferred prosecution agreement with the United States for his role in the fraud. He has paid $250,000 to Virginia Tech as restitution for his conduct. This is in addition to the restitution to be paid the Gutschlag and GMS. Lane also pled guilty to one-count of filing a false tax return for tax year 2008 and one count of filing a false tax return for tax year 2009.
In addition, Carolyn Beck, Gutschlag Sr.’s administrative assistant, has previously pled guilty to one count of conspiracy to commit wire fraud, mail fraud and money laundering. Beck had access to the false premiums and claims data on the GM-Southwest computer system at the company’s office in Texas. At Gutschlag’s direction, she provided false claims reports to Lane, who in turn provided the false reports to Virginia Tech.
At sentencing, Gutschlag faces a maximum possible penalty of up to 20 years in prison on the racketeering charge and up to 10 years in prison on each of the money laundering charges.
The investigation of the case is being conducted by SA Phillip Barnett of the Internal Revenue Service Criminal Investigation. Assistant United States Attorneys Anthony Giorno and Randy Ramseyer prosecuted the case for the United States.