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Tuesday 10 September 2013
Federal Narcotics and Firearms Charges Filed Against Twelve San Diego County ResidentsRead the Press Release
Federal grand jury indictments were unsealed today charging 12 San Diego County residents with federal drug trafficking and firearms offenses. The charges are part of a 10-month investigation by federal and local authorities that culminated with the arrests of dozens of people during raids this morning in the North County.
Of those charged federally, 10 were taken into custody during today’s sweep and two were still at large. Dozens of additional defendants will be prosecuted by the San Diego County District Attorney’s Office as part of the investigation, dubbed “Operation Mountain Shadow.”
The federal charges against the twelve defendants are the result of an intensive ten-month long investigation led by the Violent Trafficker Team (VTT) from DEA's San Diego division. Most of the defendants were arrested in today’s massive law enforcement operation involving more than 150 federal, state, and local law enforcement officers. Officers also executed federal search warrants at six residences and businesses during the operation.
All of the federal defendants are charged with distributing methamphetamine or conspiring with others to distribute methamphetamine. Several are also charged with illegally possessing firearms, and one is charged with discharging a firearm in furtherance of a drug trafficking crime.
Those in federal custody include Paulino Aguirre, Johnny Castillo, Christopher Maldonado, John Caudle, Oscar Rodriguez-Torres, Miguel Rodriguez-Torres, Todd Young, Jose Tyoran and Israel Ornelas. Tyoran and Ornelas appeared in federal court this afternoon; they entered not-guilty pleas and a detention hearing was set for Sept. 12 at 9:30 a.m. before U.S. Magistrate Judge David Bartick. The two federal fugitives are Vasquez and Juan Aguirre are not yet in custody.
The DEAs Violent Trafficker Team was created to respond to violent drug trafficking organizations in local communities throughout the nation. The Violent Trafficker teams are deployed on a temporary basis to assist state and local law enforcement in the disruption and dismantling of drug trafficking organizations. The Violent Trafficker Team’s deployment in Poway and Ramona was intended to address a surge in violent crime and drug overdoses, particularly among young people, in those communities. The surge was directly connected to narcotics and firearms trafficking in the area.
During the Violent Trafficking Team’s ten-month investigation, agents conducted multiple seizures of methamphetamine and also seized firearms including several 12-gauge shotguns, one sawed off shotgun, and several semi-automatic rifles.
DEFENDANTS Case Number: 13cr3310Juan Aguirre
Charges: Distribution of methamphetamine and conspiracy (21 U.S.C. §§ 841(a)(1) and 846)
Unlawful possession of firearm (18 U.S.C. § 922(g)(1))
Discharge of a firearm in furtherance of a drug trafficking offense (18 U.S.C. § 924(c))Paulino Aguirre
DEFENDANTS Case Number: 13cr3311
Charges: Distribution of methamphetamine and conspiracy (21 U.S.C. §§ 841(a)(1) and 846)Johnny Castillo
DEFENDANTS Case Number: 13cr3312
Charges: Distribution of methamphetamine and conspiracy (21 U.S.C. §§ 841(a)(1) and 846)
Unlawful possession of firearm (18 U.S.C. § 922(g)(1))Jose Ernesto Dinero
DEFENDANTS Case Number: 13cr3313
Charges: Distribution of methamphetamine (21 U.S.C. §§ 841(a)(1))Christopher Maldonado
Charges: Distribution of methamphetamine and conspiracy (21 U.S.C. §§ 841(a)(1) and 846)Jose Tyoran
Charges: Distribution of methamphetamine and conspiracy (21 U.S.C. §§ 841(a)(1) and 846)John Caudle
Charges: Distribution of methamphetamine and conspiracy (21 U.S.C. §§ 841(a)(1) and 846)Michelle Vasquez
Charges: Distribution of methamphetamine and conspiracy (21 U.S.C. §§ 841(a)(1) and 846)Israel Ornelas
DEFENDANTS Case Number: 13cr3314
Charges: Distribution of methamphetamine and conspiracy (21 U.S.C. §§ 841(a)(1) and 846)Oscar Rodriguez-Torres
Charges: Distribution of methamphetamine and conspiracy (21 U.S.C. §§ 841(a)(1) and 846)
Unlawful possession of firearm (18 U.S.C. § 922(g)(5)Miguel Rodriguez-Torres
DEFENDANTS Case Number: 13cr3315
Charges: Distribution of methamphetamine and conspiracy (21 U.S.C. §§ 841(a)(1) and 846)Todd Young
SUMMARY OF CHARGES
Charges: Distribution of methamphetamine and conspiracy (21 U.S.C. §§ 841(a)(1) and 846)
Unlawful possession of firearm (18 U.S.C. § 922(g)(1))Conspiracy to Distribute Controlled Substances B Title 21, United States Code, Sections 841(a)(1) and 846
Maximum penalty: Life imprisonment and $4,000,000 fineDistribution of Controlled Substances B Title 21, United States Code, Section 841(a)(1)
Maximum penalty: Life imprisonment and $4,000,000 fineUnlawful Possession of Firearm B Title 18, United States Code, Section 922(g)
Maximum penalty: 10 years= imprisonment and $10,000 fineCriminal Forfeiture B Title 21, United States Code, Section 853
AGENCIES
Maximum penalty: Forfeiture of proceedsDrug Enforcement Administration
Alcohol, Tobacco, Firearms and Explosives
United States Border Patrol
United States Marshals Service
San Diego County Sheriff's DepartmentAn indictment itself is not evidence that the defendants committed the crimes charged. The defendants
are presumed innocent until the Government meets its burden in court of proving guilt beyond a
reasonable doubt.Federal Judge Convicts Rexburg Man of Distributing Meth and Violating Federal Firearms LawsRead the Press Release
POCATELLO – Noe Munguia-Diaz, a/k/a Juan Ernesto Medina-Munguia, 35, of Rexburg, Idaho, was found guilty today in federal court in Pocatello of six counts of distributing methamphetamine, one count of possession with intent to distribute methamphetamine, and two counts of unlawfully possessing firearms, U.S. Attorney Wendy J. Olson announced. Munguia-Diaz appeared before the Hon. Terry J. Hatter, Jr., Senior U.S. District Judge for the Central District of California. He waived his right to trial by a jury in August 2013.
During the two-day trial, Judge Hatter heard evidence that Munguia-Diaz sold methamphetamine to other individuals on six occasions between March 23, 2011, and October 19, 2012. During one of the sales, Munguia-Diaz also sold a handgun. Judge Hatter also heard evidence that on March 4, 2013, when the defendant was arrested, Rexburg police officers found over $4,500 in the possession of the defendant and his female passenger, evidence that Munguia-Diaz had deposited that day a total of $15,000 between two different banks, and a loaded handgun. Later than night, pursuant to a search warrant, officers recovered approximately one ounce of methamphetamine from a heating vent in Mungua-Diaz’s bedroom. Munguia-Diaz admitted to officers that he had methamphetamine in his house and that the firearm in the car belonged to him.
Munguia-Diaz is scheduled to be sentenced by Judge Hatter on December 3, 2013, at the federal courthouse in Pocatello. He faces a minimum term of five up to 40 years in prison, a maximum fine of $5 million, and at least four years of supervised release. Munguia-Diaz will forfeit the two firearms he unlawfully possessed and $31,202 as proceeds from his criminal offenses.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Madison County Sheriff’s Office, with assistance by Bingham Co. Sheriff’s Office, Blackfoot Police Department, Federal Bureau of Investigation, Fremont Co. Sheriff’s Office, Idaho State Police, Jefferson Co. Sheriff’s Office, Rexburg Police Department, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Eli Lilly Warehouse Thief Admits Participating in Additional Multimillion Dollar BurglariesRead the Press Release
– Stole more than $1.5 million in cigarettes from Leitchfield, Kentucky warehouse
New Haven, Conn. – The United States Attorney’s Offices for the District of Connecticut, Eastern District of Virginia, Middle District of Florida and Western District of Kentucky announced that Amed Villa pleaded guilty yesterday, before U.S. Magistrate Judge Joan G. Margolis in New Haven to federal conspiracy and theft charges stemming from his participation in warehouse burglaries in Virginia, Florida and Kentucky. On July 1, 2013, Villa pleaded guilty in the District of Connecticut to charges stemming from the theft of approximately $90 million in pharmaceuticals from the Eli Lilly Company warehouse and storage facility in Enfield, Conn., in March 2010, and more than $8 million in cigarettes and a cargo trailer from a warehouse in East Peoria, Ill., in January 2010.
In pleading guilty to the additional charges, Villa, 49, admitted that he and others stole more than $13.3 million in pharmaceuticals from the GlaxoSmithKline warehouse in Colonial Heights, Va., in August 2009, approximately $7.8 million in cellular telephones and multimedia tablets from the Quality One Wireless warehouse in Orlando, Fla., in January 2011, and more than $1.5 million in cigarettes from the Coremark Cigarette Warehouse in Leitchfield, Ky., in March 2011.
Villa was charged with the additional thefts in the Eastern District of Virginia, Middle District of Florida and Western District of Kentucky, respectively, and the cases were transferred to the District of Connecticut for further prosecution.
During each of the thefts, Villa and his co-conspirators gained entry into the warehouse through the roof, disabled the alarm system and loaded the stolen goods into tractor trailers.
Villa’s DNA was identified on items discarded during the thefts in Connecticut, Illinois, Florida and Virginia.
To date, Villa has pleaded guilty to two counts of conspiracy to commit theft from an interstate shipment and five counts of theft from an interstate shipment. He is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton in New Haven on December 4, 2013, at which time he faces a maximum term of imprisonment of five years on each of the conspiracy counts, and a maximum term of imprisonment of 10 years on each of the theft counts.
Villa, a citizen of Cuba who last resided in Miami, has been detained since his arrest on May 3, 2012.
The investigation of the Connecticut warehouse theft is being led by the FBI in New Haven and the Enfield Police Department, the investigation of the Illinois theft is being led by ATF and the East Peoria Police Department, the investigation of the Virginia theft is being led by the FBI, the investigation of the Florida theft is being led by the FBI and the Orlando Police Department, and the investigation of the Kentucky theft is being led by ATF.
This case is being prosecuted in the District of Connecticut by Assistant U.S. Attorney Anastasia E. King, with the assistance of Assistant U.S. Attorney K. Tate Chambers of the Central District of Illinois, Assistant U.S. Attorney Jessica Aber of the Eastern District of Virginia, Assistant U.S. Attorney Christopher LaForgia of the Middle District of Florida and Assistant U.S. Attorney Joshua Judd of the Western District of Kentucky.
East Rochester Man Sentenced for Roles in Scrap Medal Theft and Marijuana Grow OperationRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Christopher H. Monfort, 41, of East Rochester, N.Y., who was convicted of burglary of a railcar and manufacturing 50 or more marijuana plants, was sentenced to 78 months in prison and ordered to pay $4,669.26 in restitution by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that Monfort was involved in four scrap metal thefts between June 19 and June 30, 2009. On June 30, 2009, the defendant, along with Richard E. Riedman, Anthony Russell, Anthony Toscano, and Timothy M. Stone, stole more than 17 gross tons of a high-grade scrap steel from a railcar at a CSXT rail yard in Batavia, N.Y. Monfort and his co-conspirators used a logging truck to remove the scrap steel from the railcar, wore dark clothing and used lookouts to avoid detection by law enforcement authorities and pedestrians, and used two-way radios to communicate with each other during the theft.
The defendant and Stone were apprehended in the logging truck, and Riedman, Toscano and Russell were arrested in a pick-up truck by members of the Genesee County Sheriff's Office as they left the scene of the theft in the early morning hours of June 30, 2009. The bales were in the process of being shipped to a steel mill in Pennsylvania when Monfort and his co-conspirators stole them. The defendant also stole an additional 50 gross tons of the same type of high-grade processed scrap steel during three other thefts from railcars at the same CSXT railroad yard between June 19 and June 20, 2009.
Riedman, Toscano, Russell, and Stone were convicted of the theft that occurred on June 30, 2009, after a two-week jury trial before Judge Siragusa in September 2012. Toscano, Russell, and Stone were sentenced to 18 months, 15 months, and 12 months in prison, respectively. Riedman is awaiting sentencing.
The marijuana charge stemmed from a search warrant executed at a residence located at 353 Noridge Drive in Irondequoit, N.Y, in December, 2011. During the search, the police recovered 276 marijuana plants, as well as scales, lights, and other equipment used to grow and manufacture marijuana. Monfort admitted to using the residence to house a marijuana grow operation.
The convictions relating to the scrap metal thefts are the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, and the Genesee County Sheriff's Office, under the direction of Gary Maha.
The conviction relating to the marijuana grow operation is the culmination of an investigation on the part of the Greater Rochester Area Narcotics Enforcement Team composed of law enforcement personnel from the Rochester Police Department, under the direction of Chief James M. Sheppard, the Brighton Police Department, under the direction of Chief Mark Henderson, the East Rochester Police Department, under the direction of Chief Steven J. Clancy, and the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division.
Columbia, S.C., Agrees to Major Sewer System UpgradesRead the Press Release
WASHINGTON – The Department of Justice, U.S. Environmental Protection Agency (EPA), and South Carolina Department of Health and Environmental Control (DHEC) announced a proposed settlement with the City of Columbia to resolve violations of the Clean Water Act (CWA), including unauthorized overflows of untreated raw sewage. Columbia has agreed to undertake a thorough assessment of, and implement extensive improvements to, its sanitary sewer system at an estimated cost of $750 million.
In addition, Columbia will implement a $1 million supplemental environmental project to restore streams, reduce flooding, and improve water quality in segments of Rocky Branch, Smith Branch and Gills Creek, waterways that run through historically low income and minority neighborhoods.
“This settlement will bring badly needed improvements to Columbia’s aging sewer infrastructure, reduce the dangers of sewage contamination and improve the quality of waterways in historically disadvantaged communities,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “It is good news for human health and the environment of South Carolina’s capital city today and for future generations.”
“In this settlement, the city of Columbia has taken responsibility for its aging sewer treatment system,” said U.S. Attorney for the District of South Carolina Bill Nettles. “The city’s leadership and engineers have worked many long, hard hours with the engineers at the EPA and the Department of Health and Environmental Control in hammering out a solution that addresses the problems in the city sewer system, improves the quality of our rivers and streams, and the health and safety of South Carolinians for decades to come. For that we are grateful.”
“Sewage overflows are a major problem that affects water quality in the Southeast and across the entire country because of aging infrastructure,” said Acting EPA Regional Administrator Stan Meiburg. “Bringing systems like Columbia’s into compliance is one of EPA’s top enforcement priorities, and through this settlement the city is taking positive steps to correct longstanding sewer overflow problems.”
“We are pleased this matter has been resolved through a consent decree, rather than costly litigation,” said DHEC Director Catherine Templeton. “This agency will continue to work closely with the city of Columbia and our federal partners to ensure the agreed-upon improvements are realized, and the health of the citizens and environment are protected.”
The proposed consent decree requires Columbia to implement a comprehensive sewer system assessment and rehabilitation program to address the existing problems of raw sewage overflows. Based on the sewer system assessment, the city will develop and implement remedial projects and infrastructure upgrades to address conditions causing sewer overflows. These remedial projects will be in addition to infrastructure upgrades already underway or planned by Columbia, which the consent decree also requires to be completed. Lastly, the city will develop and implement specific programs designed to ensure proper management, operation and maintenance of its sewer system over the long-term to prevent future sewer overflows.
Keeping raw sewage out of the waters of the United States is one of the EPA’s national enforcement initiatives for 2011 to 2013. The initiative focuses on reducing sewer overflows, which can present a significant threat to human health and the environment. These reductions are accomplished by obtaining cities’ commitments to implement timely, affordable solutions to these problems.
The United States has reached similar agreements in the past with numerous municipal entities across the Southeast, including Mobile and Jefferson County (Birmingham), Alabama; Miami-Dade County, Fla.; Atlanta and Dekalb County, Ga.; Northern Kentucky Sanitation District #1, Louisville/Jefferson County MSD, and Lexington-Fayette Urban County Government, Ky.; Jackson, Miss.; Wilmington/New Hanover County/Cape Fear Public Utility Authority, N.C.; and Memphis, Knoxville Utilities Board, Chattanooga and Nashville MWS, Tenn..
The proposed settlement is memorialized in a consent decree that was lodged yesterday in the U.S. District Court for the District of South Carolina. The proposed consent decree is subject to a 30-day public comment period and final court approval. A copy is available on the Department of Justice website at: www.justice.gov/enrd/Consent Decrees.html.
More information on EPA’s national enforcement initiative is available at: www.epa.gov/compliance/data/planning/initiatives/2011sewagestormwater.html
Colorado Man Sentenced to Ten Years in Federal Prison for Cocaine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Jimmy Garcia, 51, of Denver, Colo., was sentenced earlier today in federal court in Las Cruces, N.M., to ten years in federal prison followed by five years of supervised release for his cocaine trafficking conviction. Garcia’s sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, , Special Agent in Charge Joseph M. Arabit of the El Paso Division of the DEA, and Chief Patrol Agent Scott A. Luck, El Paso Sector of the U.S. Border Patrol.
Garcia was arrested on June 21, 2012, after Border Patrol agents discovered 6.62 kilograms of cocaine secreted in his vehicle during a routine inspection at the I-25 Border Patrol checkpoint north of Las Cruces. According to the criminal complaint, the agents sought and obtained Garcia’s consent to have a narcotics canine inspect his vehicle when Garcia became nervous and non-responsive during routine questioning. After the narcotics canine indicated the presence of narcotics in the vehicle, the agents found seven bundles of cocaine hidden in the dash of the vehicle. Garcia has been in federal custody since his arrest.
On May 7, 2013, Garcia pled to the indictment and admitted driving into a Border Patrol checkpoint in a vehicle containing 6.62 kilograms of cocaine. Garcia further admitted that he intended to transport the cocaine to others who would further distribute the drugs.
This case was investigated by the DEA and the Las Cruces station of the U.S. Border Patrol and was prosecuted by Assistant U.S. Attorney Amanda Gould of the U.S. Attorney’s Las Cruces Branch Office.
Citizen of the United Kingdom Convicted for Resisting Deportation OrdersRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that Michael Phillip Telemaque, 47, of the United Kingdom, was found guilty by a federal jury on four counts of impeding or hampering his deportation. U.S. District Judge Patricia Minaldi presided over the trial.
Telemaque’s trial started Monday and ended Tuesday morning with the jury returning a guilty verdict after deliberating for 30 minutes. Witness testimony and documents admitted at trial revealed that Telemaque refused to fill out passport applications for his deportation to the United Kingdom four times between November 2010 and September 2011. In addition to the application requirement, the United Kingdom also requires that Telemaque must speak to a representative of the consulate, provide fingerprints and a photo, and show proof that he is a United Kingdom citizen. He refused to perform any of these tasks and failed to provide an explanation to his refusal. Telemaque was found guilty in January 1997 for selling crack cocaine and received a 180-month prison sentence. He was ordered to be removed from the United States in June of 2010.
Telemaque faces up to four years in prison per count, a $250,000 fine, and one year of supervised release for resisting deportation. Sentencing is set for December 6, 2013.
The Immigration and Customs Enforcement - Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorney James T. McManus and Special Assistant U.S. Attorney Robert C. Abendroth are prosecuting the case.Chinese National Sentenced for Illegally Exporting Military Electronics ComponentsRead the Press Release
BOSTON - Zhen Zhou Wu, a Chinese national, was re-sentenced yesterday to 84 months in prison for conspiring over a 10-year-period to illegally export military and sophisticated electronics to the People’s Republic of China (PRC).
Wu was also convicted of illegally exporting sensitive electronic components to the PRC on 12 occasions between 2004 and 2007. Several Chinese military entities were among those to whom the defendant exported the equipment, which is used in military phased array radar, electronic warfare, and missile systems. He was also ordered to pay a $15,000 fine. After serving his sentence Wu will be subject to deportation to the PRC.
On March 19, 2013, the U.S. Court of Appeals for the First Circuit affirmed Wu’s conviction on 15 of the 17 counts of export violations for which a jury convicted him after a six-week trial in 2010. The First Circuit vacated two counts of conviction that charged Wu with illegally exporting parts designated on the United States Munitions List because it held that the jury instructions given were constitutionally inadequate. However, the First Circuit observed that “from 1996 until 2008, Wu and his co-defendant, Yufeng Wei, shipped tens of millions of dollars worth of sophisticated electronic components from the United States to China, with little regard for whether the parts that they sold were export-controlled.” Further, the First Circuit found that Wu’s company “specifically pursued military customers; and Wu promoted himself as both an exporter of military supplies and an export compliance expert.” Lastly, the First Circuit determined that “Wu and Wei repeatedly attempted to disguise the fact that they were exporting to China and that they lacked the necessary licenses to do so.”
Because two counts of the conviction were vacated, the case was remanded for a re-sentencing hearing. Wei’s re-sentencing hearing has not yet been scheduled.
On May 17, 2010, Wu, his ex-wife, Wei, and his company, Chitron Electronics, Inc. were convicted of conspiring to unlawfully export to the PRC military electronics from 1997 to 2007 and export restricted electronics components and illegally exporting such parts to the PRC on numerous occasions between 2004 and 2007. The defendants’ illegal enterprise involved the use of Chitron Electronics, Inc., a company Wu established in Waltham, Mass., as a front company for its parent company, Chitron Electronics Limited, headquartered in Shenzhen, PRC. Wu used Chitron-US to procure export restricted equipment from US suppliers and then export the goods to from Waltham to China, through Hong Kong without the suppliers’ knowledge. The exported equipment is used in electronic warfare, military radar, fire control, military guidance and control equipment, missile systems, and satellite communications. Many of Chitron’s customers were Chinese military research institutes and military entities responsible for procuring, developing, and manufacturing electronic components for China’s Army, Navy and Air Force.The Department of Defense’s Defense Technology Security Administration concluded in a report filed with the Court that the defendants’ activities in this case seriously threatened “U.S. national and regional security interests.” According to the Department of Defense, the parts the defendants were convicted of illegally exporting are “vital for Chinese military electronic warfare, military radar, fire control, military guidance and control equipment, and satellite communications.” The report further concluded that the illegally exported parts are “precisely the [types of] items ... that the People’s Liberation Army actively seeks to acquire.”
United States Attorney Carmen M. Ortiz; Acting Assistant Attorney General John P. Carlin of the Justice Department’s National Security Division; John J. McKenna, Special Agent in Charge of the U.S. Department of Commerce, Office of Export Enforcement, Boston Field Office; Bruce Foucart, Special Agent in Charge of Homeland Security Investigations in Boston: Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Leigh-Alistair Barzey, Resident Agent in Charge of Defense Criminal Investigative Service in Boston made the announcement. The case is being prosecuted by Assistant U.S. Attorneys B. Stephanie Siegmann and John A. Capin of Ortiz’s Anti-Terrorism and National Security Unit.
Canal Winchester Man Pleads Guilty to Armed Robbery of Reynoldsburg Jewelry StoreRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Darnell J. Harris, 26, of Canal Winchester, Ohio, pleaded guilty in U.S. District Court to committing a takeover style armed robbery of a Reynoldsburg jewelry store in May, 2012 with his sister as an accomplice.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Christopher J. Hyman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Reynoldsburg Police Chief Jim O’Neill announced the plea entered September 9 before Senior U.S. District Judge Peter C. Economus.
Harris pleaded guilty to one count of obstructing interstate commerce (Hobbs Act), a crime punishable by up to 20 years in prison, and one count of brandishing a firearm during a crime of violence, a crime punishable by a mandatory seven-year term of imprisonment that Harris must serve consecutive to any prison time he receives for the robbery.
According to court documents, Harris’ sister, Mariah, entered Heins Jewelers posing as a customer shopping for engagement rings. Once she had the attention of both employees, Darnell entered the store carrying a handgun and ordered both employees into a back room. Harris tied up the employees. One loosened his restraints and tried to escape. Darnell viciously beat the employee with the gun, causing severe face and head trauma. The siblings fled the store with cash and jewelry.
Reynoldsburg and Pickerington police officers arrested Darnell Harris in March 2013 following a traffic stop in Pickerington. Mariah Harris surrendered to the Reynoldsburg Police and was arrested there. Darnell Harris has been in custody since his arrest. Judge Economus will set a date for sentencing.
Mariah Harris pleaded guilty on September 3, 2013 to one count of violating the Hobbs Act.
U.S. Attorney Stewart commended the investigation conducted by the ATF and Reynoldsburg Police. Assistant U.S. Attorneys David J. Bosley and Doug Squires are representing the United States in the case.
California Man with Colorado Ties Pleads Guilty to Multi-Million Dollar Real Estate SchemeRead the Press Release
DENVER – Dale Johnson, age 46, of Los Angeles, California, pled guilty before U.S. District Court Judge Wiley Y. Daniel last week to one count of wire fraud and one count of money laundering, federal law enforcement authorities announced. Johnson, who is free on bond, is scheduled to be sentenced by Judge Daniel on January 21, 2014 at 11:00 a.m. Johnson along with six other co-defendants, as mentioned below, were indicted by a federal grand jury in Denver on September 1, 2011.
According to the facts contained in the indictment as well as the stipulated facts contained in the plea agreement, the scheme began in March of 2006. Johnson was a member of a business group based out of Culver City, California called “Synergy”. In early 2006, Synergy was made up of Dale Johnson (President & Chief Executive Officer), Donald Beverly (Vice President of New Business Development), Ronald Benjamin (Regional Manager and Senior Vice President of Sales & Marketing), Jimmy Hutchinson (Chief Financial Officer), and Vincent Jackson (Vice President of Marketing).
In 2006, Johnson began to present Synergy members with a number of properties available for purchase in Colorado. He began to develop business relationships with various real estate professionals in Colorado, to include, Jerry Minney (real estate broker) and Scott Goldberg (mortgage broker). Minney and Golderg assisted Synergy members in the purchase of various homes in Colorado. Johnson and other Synergy members began traveling to Colorado where they started purchasing multiple residential properties. The homes were typically purchased in the individual member’s own name, using the member’s personal credit history to qualify for the purchases. Johnson and others typically identified the property and helped arrange for the purchase by a Synergy member.
As part of the scheme, Synergy members with the assistance of Goldberg, and other persons, submitted “uniform residential loan applications” to lenders in connection with qualifying for home loans. In a number of loan applications, Synergy members and other buyers provided, or assisted in providing, materially false statements, representations, and omissions to real estate lenders, or the lenders’ agents. False information included income, assets, debts, employment history and/or intent to occupy the home as a primary residence.Furthermore, Synergy Members, with the assistance of Goldberg, Minney, and others, arranged for a portion of lender funds from home purchases to be paid to Synergy Members as “kickbacks”. Such kickbacks were often concealed from lenders through a series of false statements and material omissions made in connection with closings for properties or in connection with the loan documents submitted to the lenders. To further conceal the kickbacks from lenders, they routed payments through third parties posing as property management companies, such as “5280 Denver Real Estate” and “Willow Property Management”, and through realtor commissions paid to Broker One Real Estate.
Donald Beverly pled guilty on July 30, 2012 and is scheduled to be sentenced on November 20, 2013. Scott Goldberg pled guilty on June 12, 2012 and is schedule to be sentenced on October 15, 2013. Vincent Jackson pled guilty on May 23, 2012 and was sentenced to 60 months of probation on October 17, 2012.
Wire fraud carries a penalty of not more than 20 years in federal prison and a fine of up to $250,000 per count. Money Laundering carries a penalty of not more than 10 years in federal prison and a fine of up to $250,000 per count.
This case was investigated by agents with Internal Revenue Service Criminal Investigation (IRS-CI), the Federal Bureau of Investigation (FBI), United States Postal Service and the U.S. Secret Service.
The case is being prosecuted by Assistant United States Attorney Tim Neff.
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Cahokia Illinois 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 10, 2013, Lisa C. Luckett, 50, of Cahokia, IL, pled guilty to a two-count indictment charging that she engaged in a scheme to commit health care fraud. At her sentencing Luckett will face up to 20 years in prison, a fine of up to $500,000, and up to 3 years of supervised release. Sentencing has been set for January 17, 2014, at 9:00 a.m. in United States District Court in East St. Louis, Illinois.
Luckett’s codefendant, Henry Billups, III, 49, of Cahokia, pled guilty to one count of engaging in the scheme to commit health care fraud on September 4, 2013. Billups faces up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release. He is scheduled to be sentenced on January 14, 2014, at 9:00 a.m. in United States District Court in East St. Louis, Illinois.
During their plea hearings, Luckett and Billups both admitted that they had submitted or caused to be submitted, false fraudulent bills in regard to providing personal assistant services in the Home Services Program, a Medicaid Waiver Program. The program is designed to provide a disabled individual with assistance in performing daily living activities in the home in order to allow the person to stay at home instead of entering into a nursing home.
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.
Builder Sentenced to Prison for Embezzling from Federal Housing ProgramRead the Press Release
LAS VEGAS - - A home builder was sentenced today by U.S. District Judge Kent J. Dawson to 51 months in prison and three years of supervised release for embezzling from a federal housing grant program that was to be used to build affordable housing for the Navajo people near Chilchinbeto, Arizona, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
William Aubrey, 71, of Mesquite, Nevada, was convicted by a jury in May of two counts of taking and converting money and funds belonging to a tribal organization. A hearing to decide the amount of restitution Aubrey must pay will be held on Oct. 15, 2013. Aubrey is to report to federal prison on Jan. 3, 2014.
“Persons who steal from federal programs cheat the recipients of those programs as well as the American taxpayer,” said U.S. Attorney Bogden. “As the prosecution of this case demonstrates, persons who steal from federal programs such as HUD or Medicare, will be prosecuted and when convicted face severe penalties.”
The Navajo Nation is a federally recognized sovereign Indian Tribe whose borders encompass a large portion of Arizona and extend into New Mexico and Utah. According to court records and the evidence introduced at trial, Fort Defiance Housing Corporation was a Navajo Nation non-profit corporation entrusted by the Navajo Housing Authority to manage federal housing funds granted to the Navajo Nation. Fort Defiance Housing Corporation contracted with a Lodgebuilder, a for-profit construction company owned and operated by Aubrey, to oversee the construction of several housing developments including the project near Chilchinbeto. Fort Defiance Housing Corporation also empowered Aubrey to manage the federal housing funds granted to that non-profit corporation for purposes of paying subcontractors, suppliers and other construction expenses. Aubrey mismanaged and failed to account for those grant funds. Aubrey transferred the housing grant funds into his own personal account and misused a substantial portion of the funds to pay his own gambling debts and other personal expenses.
The case was investigated by the Office of Inspector General for U.S. Housing and Urban Development and prosecuted by Assistant U.S. Attorneys Timothy S. Vasquez and Kathryn C. Newman.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Brookfield Podiatrist Sentenced to 41 Months in Federal Prison for Defrauding MedicareRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that SAMIR ZAKY, 38, of Brookfield, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 41 months of imprisonment, followed by one year of supervised release, for defrauding Medicare.
On June 14, 2013, a jury found ZAKY guilty of 14 counts of health care fraud and 14 counts of making false statements relating to health care matters. According to the evidence at trial, ZAKY is a podiatrist who operated Affiliated Podiatrists, LLC in Brookfield. From August 2010 to July 2011, ZAKY submitted numerous claims to the Medicare program stating that he had performed nail avulsions, a surgical procedure that requires use of an injectable anesthetic and removes the entire border of a patient’s toenail. In fact, ZAKY had only clipped or trimmed the patient’s toenails.
Judge Covello ordered ZAKY to pay $134,139 in restitution to Medicare, which includes restitution for fraudulent claims dating back to 2005.
ZAKY has been detained since June 17, 2013, after U.S. Magistrate Judge Holly B. Fitzsimmons determined that ZAKY had violated the conditions of his bond by traveling to the house of a 93-year-old patient shortly after his conviction to ask his patient why he had testified against him during the trial.
This matter was investigated by the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys David J. Sheldon and Christopher W. Schmeisser, and Auditor Kevin Saunders.
Acting U.S. Attorney Daly encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at 203-777-6311 or 1-800-HHS-TIPS.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Bristol Woman Pleads Guilty to Federal Gun ChargeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JENNIFER CARRION-SEGARRA, 29, of Bristol, pleaded guilty today before United States Magistrate Judge Donna Martinez in Hartford to one count of possession of a firearm by a previously convicted felon.
According to court documents and statements made in court, on May 22, 2012, CARRION-SEGARRA sold a pink Kahr .380 pistol, which she had nicknamed “Pinky,” to an undercover agent from the Bureau of Alcohol, Tobacco, Fireworks and Explosives (ATF). The firearm was previously purchased by CARRION-SEGARRA’s husband.
Prior to May 22, 2012, CARRION-SEGARRA had been convicted of possession of narcotics and sale of narcotics, both felony offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
CARRION-SEGARRA is scheduled to be sentenced by United States District Judge Robert N. Chatigny on December 11, 2013, at which time she faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
CARRION-SEGARRA has been released on a $150,000 bond since her arrest on March 26, 2013.
This case is being investigated by ATF and prosecuted by Assistant United States Attorney Jonathan S. Freimann and Special Assistant United States Attorney Natasha Dye.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Bolivar Man Convicted of Production and Possession of Child PornographyRead the Press Release
Jackson, TN – John McKinney, 71, of Bolivar, TN was convicted today of four counts of producing child pornography, and one count of possession of child pornography, announced U.S. Attorney Edward L. Stanton III.
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It took the jury approximately 10 minutes to find McKinney guilty on all charges. He faces a mandatory minimum sentence of 15 years in prison for each of the production counts and a minimum of 10 years on the possession count. He could receive up to 140 years in prison. There is no parole in the federal prison system.
“The jury’s verdict clearly demonstrates that this community will not tolerate predatory acts like the ones carried out by John McKinney,” said U.S. Attorney Stanton. “We have an obligation to protect our most vulnerable citizens – young, innocent children. This office, working together with our law enforcement partners, will relentlessly pursue anyone who commits such heinous crimes and ensure that they face the full consequences of the law.”
According to facts revealed during the trial, McKinney took sexually explicit pictures of girls as young as nine years old while the girls were visiting at his home. According to the sworn testimony of the mother of one victim, her younger daughter saw sexually explicit photos on McKinney’s computer. Investigators confiscated more than 87 CDs from a building on McKinney’s farm that contained pictures that he had taken depicting child pornography.
On June 25, 2013, McKinney was convicted by a federal jury of four counts of being a felon in possession of a firearm or ammunition. The guns and ammunition were discovered during the search of his home that revealed the pornographic photos. He is awaiting sentencing in that case and is facing up to 10 years in prison and a $250,000 fine for each count.
This case is being investigated by the Hardeman County Sheriff’s Office, the Jackson Police Department and the FBI in Jackson. Assistant U.S. Attorneys Deb Ireland and James Powell represent the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."Belcourt Man Sentenced for Interstate Transportation of Stolen Vehicle & Interstate Violation of Protection OrderRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Sept. 10, 2013, David L. Lilley, 27, Belcourt, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on charges of interstate transportation of a stolen vehicle and interstate violation of protection order. Lilley pleaded guilty to the charges on May 30, 2013.
Judge Hovland sentenced Lilley to three years in federal prison, to be followed by five years of supervised release. Lilley was ordered to pay a $200 special assessment to the Crime Victim’s Fund and $1,418.21 in restitution.
On Feb. 17, 2013, Lilley stole a vehicle and took a juvenile from the Turtle Mountain Indian Reservation and traveled to Iowa. Lilley was prohibited from having contact with the juvenile because of a protection order issued by the Turtle Mountain Tribal Court.
The case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs – Turtle Mountain Agency and the Iowa Highway Patrol.
Assistant U.S. Attorney Brandi Sasse Russell prosecuted the case.
Belcourt Man Pleads Guilty to Assaulting Federal OfficerRead the Press Release
BISMARCK– U.S. Attorney Timothy Q. Purdon announced that on Sept. 10, 2013, Michael Jackson, 30, Belcourt, N.D., pleaded guilty in U.S. District Court to a charge of assaulting and resisting a federal officer.
On May 7, 2013, a police officer with the Bureau of Indian Affairs – Turtle Mountain Agency, attempted to detain Jackson and put him into a patrol vehicle. Jackson resisted and kicked the officer in the knee.
The charge of assaulting and resisting a federal officer carries a statutory maximum penalty of 20 years in federal prison and a $250,000 fine.
The case was investigated by the Bureau of Indian Affairs – Turtle Mountain Agency and the Federal Bureau of Investigation.
Sentencing for Jackson has been scheduled for Dec. 20, 2013, in U.S. District Court in Bismarck, N.D., at 9:00 a.m.
Assistant U.S. Attorney Brandi Sasse Russell is prosecuting the case.
Bassett Man Sentenced for Post Office VandalismRead the Press Release
DANVILLE, VIRGINIA – An 18-year-old Bassett man, who previously pled guilty to breaking into a Henry County Post Office and causing almost $20,000 worth of damage, was sentenced last week in the United States District Court for the Western District of Virginia in Danville.
Matthew Fitzgerald, 18, of Bassett, Va., previously pled guilty to one-count of willfully committing a depredation against property of the United States, Specifically the Fieldale, Va., Post Office. Last Friday in District Court, the defendant was sentenced to six months in prison, three years of supervised release and was ordered to pay $19,309 in restitution.
According to evidence presented at previous hearings by Assistant United States Attorney Charlene R. Day, Fitzgerald admitted that on April 18, 2013 he broke into the Fieldale Post Office located in Henry County and damaged property inside.
Fitzgerald admitted to breaking windows, glass, damaging computers, discharging a fire extinguisher, throwing more than 1,000 keys on the floor and breaking florescent light tubes. In all, Fitzgerald caused $19,309 in damages.
The investigation of the case was conducted by the United States Postal Inspection Service and the Henry County Sheriff’s Office. Assistant United States Attorney Charlene Day is prosecuting the case for the United States.
23 Individuals Indicted and Arrested for False Statements in Loan Applications and Bank FraudRead the Press Release
Defendants face a forfeiture allegation of $5,394,104.00
San Juan, Puerto Rico – Twenty-three individuals, including street brokers, loan officers, realtors, appraisers, straw buyers and sellers have been charged in a 15-count indictment unsealed today and returned by a grand jury in San Juan, Puerto Rico on September 4, 2013, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico announced today. These charges stem from a scheme used by the defendants to obtain money from mortgage lending institutions.
The investigation revealed that false statements and documents were submitted to mortgage lending institutions to qualify straw buyers for mortgage loans. The false and fraudulent statements supplied by these defendants were: bank account statements, income tax withholding statements, rental contracts, certification forms, and employment certifications, to mention a few. Once the bank approved the loan and disbursed the money, the co-conspirators would then divide the profits from the seller’s proceeds.According to the indictment, the defendants aiding and abetting each other, knowingly made or cause to be made material false statements to various financial institutions for the purpose of influencing the action of other financial institutions, in connection with a loan application to obtain mortgage loans. The financial institutions are: Banco Santander de PR, Cooperativa de Ahorro y Crédito Oriental, Cooperativa Abraham Rosa, Doral Bank, First Bank of PR, Banco Bilbao Vizcaya Argentaria of PR, and RG Premier Bank of PR.
The defendants and their roles in the scheme are as follows:- Defendant Wilson Álvarez-Luna was an individual engaged in the business of purchasing and selling real properties. At times he recruited straw buyers for transactions included herein.
- Defendants Arístides Reyes-Ayala; Benjamín García-De Villalobos; Joel Rodríguez-Santiago; Vivette Rodríguez-Navedo; and Ivyleslie Caraballo-Pastrana, were loan officers and supervised loan officers who participated in the mortgage loan origination, processing and approval process in connection with some of the loans included in the indictment.
- Defendants Álvarez-Luna; Reyes-Ayala; Guillermo Castro, aka “Reynaldo Vanderhorst Meléndez;” Ramón Álvarez-Lombana; José Rosario-Ruiz, aka “Chino;” Benneth Dàvila-Ochoa; Moisés Rolón-Santiago; Orlando Pérez-Juarbe; Cesar Berroteran-Cadenas; Anny Raquel Reyes-Cruz; Gerardo Vergara-Ramírez; and Edwin Girald-Torres participated in real estate transactions as either seller or straw buyer and applied and obtained mortgage loans.
- Defendants Antonio Sotomayor-Ramírez and Henry Schettini-Gutiérrez were real property appraisers.
- Defendants Álvarez-Luna; Jesús Cuadrado-Rodríguez; Beker De Jesus-Eckardt; Ángel Daniel Bermúdez-Saez; Onix Morales-Torres; Berroteran-Cadenas; and José Cabrera-Beuchamp, aka “Pepe” acted as facilitators who would recruit straw buyers or refer properties and property owners to participate in some of the fraudulent loan transactions.
- Defendants Morales-Torres and José Cabrera-Beuchamp, aka “Pepe,”were real estate agents.
“This indictment demonstrates the commitment of the Department of Justice and the U.S. Attorney’s Office in Puerto Rico to ensure the integrity of the financial and banking system,” said Rosa Emilia Rodríguez Vélez, U.S. Attorney for the District of Puerto Rico. “The investigation and prosecution of financial crimes is one of the top priorities of the U.S. Department of Justice. Mortgage fraud is a serious issue for the banking industry and for homeowners who helplessly watch as their property values decrease, and foreclosure signs and abandoned properties take over their neighborhoods.”
Lester Fernàndez, Special Agent in Charge of this Region for the US Department of Housing and Urban Development – Office of Inspector General stated: “It is always disturbing when industry professionals who have fiduciary responsibilities and are expected to act as honest brokers exploit federally funded programs. HUD-OIG will continue to partner with prosecutors, law enforcement and audit agencies to aggressively pursue those engaged in activities that harm federal housing programs.”
Carlos Cases, Special Agent in Charge of the FBI said: “Mortgage fraud isn’t a victimless crime. It threatens the financial health of our communities, and leaves lenders burdened with bad loans and neighborhoods with abandoned and deteriorating property. FBI will continue to utilize its financial investigative expertise to aggressively investigate criminal activities that attack our financial system.”
This case is being prosecuted by Assistant U.S. Attorney Mariana Bauza. The case was investigated by U.S. Department of Housing & Urban Development Office of Inspector General (HUD-OIG), Federal Bureau of Investigation (FBI), Puerto Rico Office of the Commissioner of Financial Institutions, Puerto Rico Police Department, Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and the Puerto Rico Treasury Department, Tax Crime Division.
The maximum penalties for these offenses are 30 years of imprisonment, and fines of $1 million. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
23 Individuals Indicted and Arrested for False Statements in Loan Applications and Bank FraudRead the Press Release
Defendants face a forfeiture allegation of $5,394,104.00
San Juan, Puerto Rico – Twenty-three individuals, including street brokers, loan officers, realtors, appraisers, straw buyers and sellers have been charged in a 15-count indictment unsealed today and returned by a grand jury in San Juan, Puerto Rico on September 4, 2013, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico announced today. These charges stem from a scheme used by the defendants to obtain money from mortgage lending institutions.
The investigation revealed that false statements and documents were submitted to mortgage lending institutions to qualify straw buyers for mortgage loans. The false and fraudulent statements supplied by these defendants were: bank account statements, income tax withholding statements, rental contracts, certification forms, and employment certifications, to mention a few. Once the bank approved the loan and disbursed the money, the co-conspirators would then divide the profits from the seller’s proceeds.According to the indictment, the defendants aiding and abetting each other, knowingly made or cause to be made material false statements to various financial institutions for the purpose of influencing the action of other financial institutions, in connection with a loan application to obtain mortgage loans. The financial institutions are: Banco Santander de PR, Cooperativa de Ahorro y Crédito Oriental, Cooperativa Abraham Rosa, Doral Bank, First Bank of PR, Banco Bilbao Vizcaya Argentaria of PR, and RG Premier Bank of PR.
The defendants and their roles in the scheme are as follows:- Defendant Wilson Álvarez-Luna was an individual engaged in the business of purchasing and selling real properties. At times he recruited straw buyers for transactions included herein.
- Defendants Arístides Reyes-Ayala; Benjamín García-De Villalobos; Joel Rodríguez-Santiago; Vivette Rodríguez-Navedo; and Ivyleslie Caraballo-Pastrana, were loan officers and supervised loan officers who participated in the mortgage loan origination, processing and approval process in connection with some of the loans included in the indictment.
- Defendants Álvarez-Luna; Reyes-Ayala; Guillermo Castro, aka “Reynaldo Vanderhorst Meléndez;” Ramón Álvarez-Lombana; José Rosario-Ruiz, aka “Chino;” Benneth Dàvila-Ochoa; Moisés Rolón-Santiago; Orlando Pérez-Juarbe; Cesar Berroteran-Cadenas; Anny Raquel Reyes-Cruz; Gerardo Vergara-Ramírez; and Edwin Girald-Torres participated in real estate transactions as either seller or straw buyer and applied and obtained mortgage loans.
- Defendants Antonio Sotomayor-Ramírez and Henry Schettini-Gutiérrez were real property appraisers.
- Defendants Álvarez-Luna; Jesús Cuadrado-Rodríguez; Beker De Jesus-Eckardt; Ángel Daniel Bermúdez-Saez; Onix Morales-Torres; Berroteran-Cadenas; and José Cabrera-Beuchamp, aka “Pepe” acted as facilitators who would recruit straw buyers or refer properties and property owners to participate in some of the fraudulent loan transactions.
- Defendants Morales-Torres and José Cabrera-Beuchamp, aka “Pepe,”were real estate agents.
“This indictment demonstrates the commitment of the Department of Justice and the U.S. Attorney’s Office in Puerto Rico to ensure the integrity of the financial and banking system,” said Rosa Emilia Rodríguez Vélez, U.S. Attorney for the District of Puerto Rico. “The investigation and prosecution of financial crimes is one of the top priorities of the U.S. Department of Justice. Mortgage fraud is a serious issue for the banking industry and for homeowners who helplessly watch as their property values decrease, and foreclosure signs and abandoned properties take over their neighborhoods.”
Lester Fernàndez, Special Agent in Charge of this Region for the US Department of Housing and Urban Development – Office of Inspector General stated: “It is always disturbing when industry professionals who have fiduciary responsibilities and are expected to act as honest brokers exploit federally funded programs. HUD-OIG will continue to partner with prosecutors, law enforcement and audit agencies to aggressively pursue those engaged in activities that harm federal housing programs.”
Carlos Cases, Special Agent in Charge of the FBI said: “Mortgage fraud isn’t a victimless crime. It threatens the financial health of our communities, and leaves lenders burdened with bad loans and neighborhoods with abandoned and deteriorating property. FBI will continue to utilize its financial investigative expertise to aggressively investigate criminal activities that attack our financial system.”
This case is being prosecuted by Assistant U.S. Attorney Mariana Bauza. The case was investigated by U.S. Department of Housing & Urban Development Office of Inspector General (HUD-OIG), Federal Bureau of Investigation (FBI), Puerto Rico Office of the Commissioner of Financial Institutions, Puerto Rico Police Department, Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and the Puerto Rico Treasury Department, Tax Crime Division.
The maximum penalties for these offenses are 30 years of imprisonment, and fines of $1 million. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
23 Defendants Charged in Federal Court with Distribution of Heroin on Milwaukee's South SideRead the Press Release
The Office of the United States Attorney announced today that 23 defendants were indicted in federal court with cconspiracy to possess a controlled substance with the intent to distribute, more than 1kilogram heroin in violation of United States Code Sections 841(a)(1), and 841(b)(1)(A). If convicted each defendant faces between 10 years and life imprisonment, a $10,000,000 fine and a minimum of 5 years supervised release.
Name Age and ResidencyPraxedes Reyes-Burgos aka “Gordo”
35, Milwaukee
34, Milwaukee
Geraldo S. Reyes aka “Sapo”
38, Milwaukee
Jonathan R. Hernandez aka “Joey” aka “Yogi”
29, Milwaukee
Mike M. Hinz
62, Milwaukee
Juan Hernandez aka “Kiko”
47, Milwaukee
Luis A. Lopez
33, Milwaukee
Luz E. Reyes-Burgos aka “Betty”
45, Milwaukee
Luz Burgos
65, Milwaukee
Praxedes Reyes-Cruz
64, Milwaukee
Joel E. Lopez aka “Looney”
28, Milwaukee
Alfredo A. Hernandez III aka “Azteca” aka “Mexico”
32, Milwaukee
Israel Feliciano aka “Pigui”
47, Milwaukee
Christopher A. Malzhan
26, Ripon, WI
Alexis J. Reyes aka “Chino”
25, Milwaukee
Jesus Oquendo aka “Bobby”
24, Milwaukee
Angel L. Reyes aka “Tuto”
24, Milwaukee
Carmen R. Nieves
34, Milwaukee
Mirta Reyes
27, Milwaukee
Lidia Herrera-Diaz aka “Carmen”
38, Milwaukee
Christian Rivera
27, Milwaukee
Santiago Hernandez aka “Primo”
49, Chicago, IL
Carlos J. Manzanares
29, Chicago, IL
According to information released in court this is a large drug trafficking organization that has been selling cocaine and heroin on the south side of Milwaukee for many years. They are responsible for distributing multiple kilograms of heroin per month and it’s believed that one of the distributors may be responsible for at least one heroin overdose death. The leaders of the organization were Victor, Geraldo and Praxedes Reyes who are brothers. The Reyes brothers received their heroin primarily from Santiago Hernandez out of Chicago, though they did occasionally use other sources.
Today, law enforcement officers arrested 19 of the defendants (the other 4 were already in custody) and executed search warrants at seven separate locations. Seized in these search warrants was approximately $300,000 in US currency and five firearms. Over the last few weeks, officers have also seized over one kilogram of heroin.The defendants were charged based on a lengthy joint investigation by the Milwaukee Police Department and the Federal Bureau of Investigation (FBI) via the Milwaukee High Intensity Drug Trafficking Area (HIDTA) Drug Gang Task Force.
Law enforcement agencies that were involved in the search warrants and arrests today include: the Milwaukee Police Department, the Federal Bureau of Investigation, the Milwaukee County Sheriff’s Office, the South Milwaukee Police Department, the West Allis Police Department, the Wisconsin Department of Justice - Division of Criminal Investigations, the Wisconsin State Patrol, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, Homeland Security Investigations, the Internal Revenue Service, the United States Marshals Service, the Waukesha County Sheriff’s Office and the Milwaukee County District Attorney’s Office.
According to First Assistant United States Attorney Gregory J. Haanstad, “These charges, arrests, and seizures are a part of our continuing work to dismantle drug organizations that threaten the safety and security of neighborhoods in the Eastern District of Wisconsin and elsewhere. These efforts reflect the importance of ongoing collaboration between federal, state, and local law enforcement.”Chief Edward Flynn of the Milwaukee Police Department stated "the U.S. Attorney's Office and federal law enforcement have been valuable and reliable partners with the Milwaukee Police Department in reducing violent crime and drug trafficking in Milwaukee. Today's operation demonstrates their continued commitment to our partnership."
FBI Assistant Special Agent in Charge, Steven L. Conley said: “We will continue to work collaboratively and aggressively to bring these violent offenders to justice.”
This case is being prosecuted by Assistant U.S. Attorney Mario F. Gonzales.
An indictment or criminal complaint is a method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.
Monday 9 September 2013
White River Man Charged with Seven Counts of Aggravated Sexual Abuse of A Child, Abusive Sexual Contact, and Sexual Abuse of A ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that a White River, South Dakota, man has been indicted by a federal grand jury for seven counts of Aggravated Sexual Abuse of a Child, Abusive Sexual Contact, and Sexual Abuse of a Minor.
Shannon White Buffalo, age 46, was indicted on August 21, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 6, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is at least 30 years and up to life in custody and/or a $250,000 fine, at least 5 years and up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stem from alleged incidents that occurred between August 2010 and December 2013 when White Buffalo sexually abused three different child and minor victims in Mellette County. The charges are merely accusations and White Buffalo is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
White Buffalo was remanded to the custody of the U.S. Marshals Service pending trial. A trial has been set for October 22, 2013.Two Gang Members Sentenced in Dodge City Racketeering CaseRead the Press Release
WICHITA, KAN. - Two gang members have been sentenced to federal prison in connection with a federal racketeering case in Dodge City, U.S. Attorney Barry Grissom said today.
Joshua Flores, 25, Dodge City, Kan., was sentenced to 84 months in federal prison. He pleaded guilty to one count of brandishing a firearm in a crime of violence.
Hernan Quezada, 21, Dodge City, Kan., was sentenced to 33 months in federal prison. He pleaded guilty to one count of assault with a dangerous weapon, which was a violent crime in aid of racketeering.
In his plea, Joshua Flores admitted he was a member of the Los Carnales Chingones street gang affiliated with the Norteno street gang on June 8, 2009, when he and other gang members who were armed with firearms robbed a victim named Isidro Raleas-Velasquez and other persons.
The victims were at their home at 1005 Avenue E in Dodge City when Flores and three other men affiliated with the Nortenos broke into their residence armed with firearms. One of the Nortenos grabbed a victim, struck him in the head with a firearm and took him into another room. Flores joined the other Nortenos in going through the house looking for other residents to rob. The other Norteno beat the victim he took into the other room. During the robbery, Raelas-Velasquez was struck with a firearm in the head, causing a large laceration. After the robbery, Flores and the other Norteno gang members divided up the proceeds of the robbery.
In his plea, Hernan Quezada admitted he was a member of the Diablos Viejos (DV) street gang affiliated with the Norteno street gang when on Feb. 5, 2012, he assaulted a victim named Reyes Bocanegra. Quezada was at 1200 Avenue I in Dodge City when he got into a fight with Bocanegra’s brother, Oscar. The fight was soon joined by Reyes Bocanegra, aiding his brother, and two other DV gang members, aiding Quezada. Quezada struck Reyes Bocanegra in the head with a bottle, causing a laceration to the top of his head.
Flores and Quezada admitted that robberies, assaults and other crimes were part of the way Norteno gang members built their reputations and kept their rivals at bay.
Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff’s Office, the Kansas Bureau of Investigation, Assistant Aaron Smith and Assistant U.S. Attorney Lanny Welch for their work on the case.Two Convicted of Bank RobberyRead the Press Release
HOUSTON – Terrance Trent Batiste, 21, and Joshua Demond Clay, 28, both of Houston, have entered guilty pleas in relation to the November 2012 robbery of Amegy Bank in Houston, announced United States Attorney Kenneth Magidson. A third defendant - Kendrick Deswhan Castille, 19, also of Houston – previously also entered a guilty plea in the case.
On Nov. 7, 2012, at approximately 12:00 p.m., the Amegy Bank on 1502 Eldridge Parkway in Houston was robbed. Batiste, Castille and Clay were apprehended by Houston Police Department (HPD) officers a short distance from the bank following a pursuit.
The investigation revealed that Castille and Batiste entered the bank wearing baseball hats. Batiste was armed with a dark colored revolver which was given to him by Castille before they entered the bank. Castille and Batiste both jumped over the teller counter and demanded money from the victim teller. Clay did not enter the bank, but all three got back into their vehicle and fled after the robbery. After a pursuit by HPD, the vehicle carrying the defendants stopped into the Forest Park Cemetery, located at 12800 Westheimer in Houston, where it ran over and destroyed several tombstones. Clothing and hats worn by Batiste and Castille were recovered from the vehicle along with a large amount of U.S. currency.
All pleaded guilty to one count of conspiracy to commit bank robbery, for which each faces up to five years in federal prison and a possible $250,000 fine. Batiste and Castille were also convicted of aiding and abetting aggravated bank robbery for which they face up to 25 years in prison and another maximum $250,000 fine. Both also admitted to aiding and abetting the brandishing of a firearm during a crime of violence for which both will also face a minimum of seven years in prison which must be served consecutively to any other prison term imposed.
U.S. District Judge Kenneth Hoyt, who accepted all of the guilty pleas, has set Castille’s sentencing for Dec. 16, 2013, while Clay and Batiste will be sentenced Dec. 2, 2013, and Nov. 25, 2013, respectively.
All are in custody where they will remain pending their sentencing hearings.
The case was investigated by the FBI’s Bank Robbery Task Force and is being prosecuted by Assistant United States Attorney Jennie Basile.
Teacher Arrested on Federal Child Pornography ChargesRead the Press Release
HOUSTON – Derrick Gossett, 32, of Humble, has been arrested and charged with two counts of production of child pornography, announced United States Attorney Kenneth Magidson. At the time of the alleged offense, he was a music teacher at Anderson Elementary School in the Spring Independent School District (ISD).
Originally arrested on state charges, Gossett was taken into custody on these allegations on Friday, Sept, 6, 2013. He made his initial appearance just a short time ago, at which time U.S. Magistrate Judge George Hanks ordered him into custody pending further criminal proceedings. He is set for a counsel determination hearing Wednesday, Sept. 11, at 10:00 a.m. before Judge Hanks.
According to the criminal complaint filed on Sept. 6, Gossett allegedly used a Facebook profile in an effort solicit sexually explicit photographs that constituted child pornography from young males. The complaint further alleges he used images he received from at least one victim in an effort to extort additional images.
Authorities obtained a search warrant for Gossett’s residence, at which time a laptop computer, several thumb drives, cell phones and digital cameras were seized. One external portable hard drive, found in a lock box inside Gosset’s residence, was forensically analyzed and is alleged to contain more than 150 files with images depicting different young males, ranging in age from I 2 to I 7 years old and in various stages of undress.
The case was investigated by the Harris County Precinct 4 Constables Office, Homeland Security Investigations and the Houston Metro Internet Crimes Against Children Task Force with the assistance of the Spring ISD Police Department. The matter was brought as part of as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case is being prosecuted by Assistant United States Attorney Sherri L. Zack.
A defendant is presumed innocent unless convicted through due process of law.St. Francis Man Charged with Assault with A Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Westlee Ford, age 20, was indicted on August 21, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 6, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stem from an incident that occurred in June 2013 when Ford allegedly stabbed the victim in the chest, back, shoulder, and arm with a knife. The charges are merely accusations and Ford is presumed innocent until and unless proven guilty.The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Ford was released to a third party custodian pending trial. No trial date has been set.Six Men Sentenced to Lengthy Terms for Abducting 19-Year-Old College StudentRead the Press Release
Leader Gets Nearly 23 years
McALLEN, Texas – Six Mexican Nationals convicted of hostage taking and conspiracy to commit hostage taking of a college student have been sentenced to significant federal prison terms, announced United States Attorney Kenneth Magidson.
Today, U.S. District Judge Randy Crane, who accepted all the guilty pleas, sentenced Roman Rivera-Guillen, 33, Jose Molina, 24, Alfonso Ivan Villasana, 20, Israel Flores Jr., 21, Julio Cesar Fernandez, 25, and Bernardino Sanchez, 23, for their roles in the hostage taking. The court noted that Rivera-Guillen was a leader in the conspiracy and sentenced him to 270 months in federal prison, while Molina, Villasana, Flores, Fernandez and Sanchez, received respective terms of 210, 144, 210, 234 and 210 months imprisonment. As non-U.S. citizens, all are expected to face deportation proceedings upon their release from prison.
According to the record of the case, on Nov. 7, 2012, officers with the McAllen Police Department (MPD) responded to a kidnapping at an apartment in McAllen. The complainant informed the officers that his 19-year-old son had been kidnapped from the apartment at which time they found signs indicating the front door of the apartment had been kicked in.
Family members of the victim received a ransom demand of $700,000 for the safe return of the victim or else he would be injured. The investigation led to the arrest and apprehension of all five individuals who admitted to taking the victim from his apartment at gunpoint. However, the men no longer had the victim and had handed him over to another individual. The victim was released, unharmed, on Nov. 8, 2012.
After hearing the arguments from both the government and defense counsel in federal court today, Judge Crane handed down the prison terms for each man for seizing, detaining and threatening to kill, injure and continuing to detain the victim in order to compel his family to pay a sum of money as an explicit condition for his release. The court took into account the extent of each defendant’s involvement in the hostage taking, noting that Rivera-Guillen was the leader of the criminal venture.
All six men have been held without bond and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the FBI and FBI Safe Street Task Force with assistance from MPD. Assistant United States Attorneys Leo J. Leo III and Kristen Rees are prosecuting the case.
Shreveport Man Sentenced for Illegally Transporting Deer in East TexasRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 57-year-old Shreveport, LA, man has been sentenced to pay over $14,000.00 in restitution and serve 48 hours of community service as conditions of a two year probated sentence for federal wildlife violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Stephen Anderson Sipes Jr. pleaded guilty on June 10, 2013, to negligent transportation of wildlife and was sentenced today by U.S. Magistrate Judge John D. Love.
According to information presented in court, Sipes had an ownership interest in a high-fence ranch in Sanderson, Texas. On Jan. 14, 2010, Sipes transported and possessed 14 live, illegally imported whitetail deer valued at over $350.00 each from Carthage, Missouri to the ranch in Sanderson, which is prohibited by Texas law. The fair market value of the illegally imported whitetail deer was approximately $5,650.00.Sipes must pay $14,016.49 in restitution to the Texas Parks and Wildlife Foundation to compensate the agency for costs incurred in protecting the native deer from the threat of disease carried by the Missouri whitetails.
This case was investigated by the Special Operations Unit of the Texas Parks and Wildlife and U.S. Fish and Wildlife Service and prosecuted by Assistant U.S. Attorney Jim Noble.
Rosebud Woman Sentenced for Assault by Striking, Beating and Wounding and Simple AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman convicted of Assault by Striking, Beating and Wounding and Simple Assault was sentenced on September 6, 2013, by U.S. Magistrate Judge Mark A. Moreno.
Myra Ree, a/k/a Myra Iron Shell, age 24, was sentenced to 18 months of probation and a $20 special assessment to the Federal Crime Victims Fund.
Ree was indicted by a federal grand jury on May 15, 2013, and pled guilty on September 6, 2013.
The conviction arose from a physical fight that took place on January 28, 2013, between Ree and the victim. Ree struck the victim and then bit him on the face and the arm, wounding him. When examined by law enforcement, the victim had large bite marks, one of which drew blood. The victim and Ree are domestic partners.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.Rosebud Man Charged with Assaulting and Resisting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury on two counts of Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
Lawrence Gary, age 36, was indicted on June 12, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 6, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to an alleged incident that occurred in July 2012 when Gary resisted arrest by Rosebud Sioux Tribal Officers by refusing to exit his vehicle and then charging and head butting an officer in the chest. The charges are merely accusations and Gary is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie Ruettgers is prosecuting the case.
Gary was remanded to the custody of the U.S. Marshals Service pending trial. Trial has been set for November 5, 2013.Renee Rachelle Voorhis Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on September 9, 2013, before U.S. District Judge Sam E. Haddon, RENEE RACHELLE VOORHIS, a 28-year-old resident of Billings, was sentenced to a term of:
Prison: 18 months
Special Assessment: $100
Restitution: $80,185
Supervised Release: 3 years
VOORHIS was sentenced in connection with her guilty plea to Social Security fraud.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
VOORHIS was married to Nicholas Edgerley. VOORHIS and Edgerley had a child - A.E. in 2004. Edgerley died on June 17, 2005. On August 23, 2005, VOORHIS applied for Old Age Survivor Disability Insurance (OASDI) benefits from the Social Security Administration (SSA) on behalf of her child. The application was based on the death of the child's father. VOORHIS also applied to serve as the child's representative payee for OASDI benefits. On September 2, 2005, the SSA awarded the child OASDI benefits and designated VOORHIS as the child's representative payee.
During the application process, the SSA advised VOORHIS of all of her legal obligations regarding events affecting eligibility to OASDI benefits for her child. VOORHIS was provided a written copy of her legal obligations. The SSA annually sent out correspondence again advising VOORHIS of each of her legal obligations with respect to her child's benefits. VOORHIS was required to and did complete annual accounting forms which were intended to account for how the OASDI benefits were used and to certify that her child was still in her care and custody.
On February 1, 2012, VOORHIS's father, told the SSA that he and his wife had been raising VOORHIS's child since October 2005 and were receiving no financial assistance from VOORHIS.
On February 14, 2012, VOORHIS's parents were interviewed by law enforcement. Both indicated they were aware their daughter was receiving OASDI benefits on her child's behalf. VOORHIS initially assisted them financially with the child's care - approximately four months, November 2005 to February 2006. On several occasions, they asked VOORHIS about receiving the child's OASDI benefits to aid in the child's care. VOORHIS threatened to remove the child from her parents custody when questioned about the OASDI benefits. VOORHIS's parents indicated that she was a drug addict and in and out of jail since the child began living with them.
On July 19, 2012, VOORHIS was interviewed by law enforcement. VOORHIS confessed that she knew her legal reporting obligations regarding collecting OASDI benefits on behalf of her child. VOORHIS confessed she initially gave four months of benefits to her parents and then stopped. VOORHIS stated that she used the funds to pay for her living expenses and to support her drug habit. VOORHIS confessed to concealing that she was not caring for or in custody of her child by falsifying and submitting SSA representative accounting forms in 2007 and 2008 to 2011.
The total overpayment by SSA to VOORHIS for her child was $82,730. The amount takes into account the four months of payments VOORHIS forwarded to her parents initially for the child's care.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that VOORHIS will likely serve all of the time imposed by the court. In the federal system, VOORHIS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Criminal Investigation Division of the Internal Revenue Service.
Portsmouth Man Sentenced for Armed Robbery SpreeRead the Press Release
NORFOLK, Va. – Jonathan Ray Allen, 28, of Portsmouth, Va., was sentenced today to 384 months in prison, followed by five years of supervised release, for conspiracy, robbery and firearm charges.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia and Royce E. Curtin, Special Agent in Charge, Federal Bureau of Investigation Norfolk Office, made the announcement after sentencing by United States District Judge Raymond A. Jackson.
Allen was found guilty by a federal jury of all charges on March 23, 2012. The charges included a conspiracy count, nine substantive robbery counts and nine gun counts. According to court documents, between May and June 2011, Allen and several co-conspirators, robbed at gunpoint a number of check cashing establishments and other business establishments, including a Foot Locker Store and Beauty supply shop. Allen was charged with nine armed robberies. Allen’s co-defendants pled guilty and agreed to cooperate while Allen went to trial. During the trial, 19 victims were able to identify Allen in court as the person who robbed them at gun point.
This case was investigated by Federal Bureau of Investigation, Norfolk Office. Assistant United States Attorney William Muhr and Special Assistant United States Attorney Amy Cross prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Oxnard Man Who Kidnapped Former Girlfriend and Threatened to Kill Her in Mexico Is Sentenced to over 24 Years in Federal PrisonRead the Press Release
LOS ANGELES – A Ventura County man who kidnapped his former girlfriend
and drove her to Mexico while threatening to kill her and dump her body was sentenced
this morning to 293 months in federal prison.Rudy Soto, 26, of Oxnard, was sentenced by United States District Judge Otis D.
Wright II.Soto was convicted following a week-long jury trial in July 2012 of conspiring to
kidnap and kidnapping. The evidence at trial showed that after a heated exchange
between Soto and the victim on September 14, 2010, Soto traveled from Oxnard to the
victim’s residence near downtown Los Angeles. When the victim refused to accompany
him, Soto carried and dragged the victim, who was screaming and kicking him, to a
waiting truck that was being driven by co-defendant Erin Nicole Fisher, 22. Soto, using
the weight of his body, pinned the victim to the front passenger seat while Fisher drove
the vehicle to Mexico.During this drive, Soto told the victim he was taking her to Mexico, where she
was going to die. Soto also contacted the victim’s family and advised her brother-in-law
that he was taking the victim to Tijuana and would dump her there. When the victim
tried to fight or escape, Soto held a knife to her throat and threatened to kill her.
Eventually, the victim accepted that she was going to be killed, and gave up trying to
fight Soto and escape. During her testimony, she told the jury: “I was tired, and I just
resigned myself. And I said if he is going to kill me, let him kill me.”At the Otay Mesa checkpoint at the United States-Mexico border, Mexican
authorities stopped the pickup truck, which prompted the victim to scream for help. After
telling Mexican authorities about her plight and being threatened with a knife, Mexican
authorities detained Soto, Fisher and the victim. After the victim was examined by a
Mexican army physician, she was released. Agents with United States Customs and
Border Protection helped return her to the United States.“To carry out his plan, [Spoto] physically restrained her, struck her, terrorized her,
and threatened to kill her with a knife that he brandished,”prosecutors wrote in a
sentencing memo. “In addition, he psychologically tortured the victim, playing on her
emotions and the nature of their tumultuous relationship.”Fisher is being prosecuted separately and is participating in a court-ordered
diversionary program.This case was investigated by the Federal Bureau of Investigation, which
received substantial assistance from the U.S. Department of Justice’s Office of
International Affairs, U.S. Customs and Border Protection, the Los Angeles Police
Department, the FBI’s Legal Attache in Mexico City, and officials with the Justice
Department and the State Department assigned to the United States Embassy in
Mexico.Mexican authorities provided considerable assistance during this investigation,
including the Secretaría de Marina - Armada de México (the Mexican Navy); the
Secretaría de la Defensa Nacional (the Mexican Army); and the Procuraduría General
de la República (the Mexican Attorney General).Release No. 13-112
Oklahoma Man Pleads GuiltyTo Robbing Cherokee County BankRead the Press Release
WICHITA, KAN. - An Oklahoma man has pleaded to robbing a bank in Cherokee County, Kan., U.S. Attorney Barry Grissom said today.
Thomas Hass, 44, Quapaw, Okla., pleaded guilty to one count of bank robbery. In his plea, he admitted that on July 22, 2013, he robbed the American Bank at 901 E. 7th Street in Galena, Kan. He entered the bank and asked a teller for a mortgage application form. Then he pulled a gun and said, “Give me all your money.” The tellers did not know that the weapon was a pellet gun that shoots rubber pellets. Hass was arrested after police released surveillance photos and received a tip leading them to him. Hass had approached a woman and told her that he recently had obtained a large amount of money and he wanted to take her to Las Vegas.Sentencing is set for Nov. 25. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000.
Grissom commended the Galena Police Department, the FBI and Assistant U.S. Attorney Alan Metzger for their work on the case.
North Ogden Couple Pleads Guilty for Tax Fraud SchemeRead the Press Release
SALT LAKE CITY – Husband and wife Robert Watson, 54, and Marie Watson, 52, pleaded guilty in federal court in Salt Lake City in connection with a tax fraud scheme arising out of their operation of the Teazers Sports Bar & Grill in Ogden, Utah.
U.S. Attorney David B. Barlow for the District of Utah and Special Agent in Charge Paul A. Camacho of the Internal Revenue Service-Criminal Investigation (IRS-CI) Las Vegas Field Office made the announcement.
Robert Watson pleaded guilty Wednesday to two counts of filing false tax returns – one a corporate return and one a personal return. He faces a maximum penalty of three years in prison and a fine of $100,000. Marie Watson pleaded guilty to one count of filing a false personal tax return and also faces a maximum penalty of three years in prison and a fine of $100,000. The Watsons will be sentenced on Jan. 10, 2014.
According to the indictment and other publicly filed documents, during the time the Watsons owned and operated Teazers, they failed to report substantial cash income on Teazers’ corporate returns and on their personal tax returns. Teazers generated large amounts of cash income from entrance fees known as “cover charges” charged at the door of the bar and from other items in the bar such as pool tables and video games. The Watsons deliberately hid this cash income from their tax preparer and caused tax returns to be filed with the IRS that grossly understated their true income.
The Watsons’ guilty pleas involved false returns arising out of this scheme for tax year 2007. According to the publicly filed plea documents, Robert Watson could owe the IRS as much as $221,290 in back taxes, and Marie Watson could owe as much as $114,942. The final amount owed to the IRS will be determined at sentencing.
This case is being investigated by the IRS-CI Las Vegas Field Office. The case is being prosecuted by Assistant U.S. Attorney Jason R. Burt for the District of Utah.
Newton County Man Sentenced for Killing Bald Eagle on Nanih Waiya Wildlife Management AreaRead the Press Release
JACKSON, Miss. - Marcus Tyler Cochran, 21, of Decatur, Mississippi, pled guilty in U.S. Magistrate Court on September 4, 2013, to shooting a mature bald eagle in violation of the Bald and Golden Eagle Protection Act, announced U.S. Attorney Gregory K. Davis, Luis Santiago, Special Agent in Charge of the U.S. Fish and Wildlife Service, and Steve Adcock, Chief of Law Enforcement for Mississippi Department of Wildlife, Fisheries, and Parks.
Cochran shot the bald eagle while duck hunting on the Nanih Waiya Wildlife Management Area in Neshoba County on December 2, 2012. Following his guilty plea, Cochran was ordered to pay a fine in the amount of $2,500. He was also placed on probation for a period of two years, during which time Cochran will be prohibited from hunting in any manner or at any hunting camp or campsite at any time. In addition, Cochran was ordered to forfeit the firearm used in the commission of the offense.
“The protection of Mississippi’s wildlife, including the national bird of the United States, is a priority of the U. S. Attorney’s office for the Southern District of Mississippi,” said U.S. Attorney Gregory K. Davis. “Today’s prosecution demonstrates that individuals who participate in the senseless killing of bald eagles and other migratory birds will be investigated, prosecuted and punished accordingly.”
United States Fish and Wildlife Service Special Agent in Charge Luis Santiago stated “We take our mission working with the Mississippi Department of Wildlife, Fisheries, and Parks and the citizens of Mississippi in conserving, protecting, and enhancing fish, wildlife, plants and their habitats very seriously by investigating those who choose to violate state and federal laws. They undermine the proud tradition of hunting for all hunters.”
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
New York Man Pleads Guilty to $1 Million ATM Skimming Scheme Targeting Tri-State Bank CustomersRead the Press Release
NEWARK, N.J. – A Romanian national and Queens, N.Y., resident today admitted to a scheme to steal account information from bank customers throughout New Jersey, New York and Connecticut by installing secret card-reading devices on ATMs, U.S. Attorney Paul J. Fishman announced.
Constantin Ginga, 52, pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Ginga has been held without bail since his arrest on Jan. 13, 2013.
To date, nine other individuals have been charged with a related conspiracy, which stole millions of dollars from unsuspecting customers.
According to documents filed in this and related cases, as well as statements made in court:
During his guilty plea, Ginga admitted that he and fellow conspirators installed skimmers and pinhole cameras at bank ATMs. The devices were installed on multiple ATMs in New Jersey and Connecticut. Each skimmer, an electronic device, would read and record identity and account information contained in the magnetic strip of a customer’s ATM card. The pinhole camera secretly recorded bank customers’ keystrokes as they entered their personal identification numbers. Ginga admitted that he and other conspirators went back to collect the devices containing the recorded information.
Ginga acknowledged that after the stolen customer account and identification information had been loaded onto blank ATM cards, he and his conspirators used those cards to take approximately $985,000 from Citibank ATMs in New Jersey, New York and Connecticut.
The charges to which Ginga pleaded guilty arose from a larger investigation into a skimming scheme that targeted customers in the tri-state area in 2012 and early 2013. Together, the schemes cost a number of banks a total of approximately $5 million in cash stolen from their customer accounts.
Of the nine others charged in relation to the wider scheme, all Romanian nationals who lived in Queens, eight are in custody. The leaders of the scheme, Marius Vintila, 31, and Bogdan Radu, 30, were charged by criminal complaint on July 10, 2013. Vintila and Radu designed and created the actual skimming devices and pinhole cameras and recruited individuals, including Ginga, to install them on bank ATMs.
Other charged conspirators, including Ginga, Marius Cotiga, 35, Ioan Leusca, 30, Dezso Gyapias, 28, Constantin Pendus, 29, Emil Revesz, 30, Florin Apetrei, 18 and another individual charged as “FNU LNU” (name unknown)installed the devices designed by Vintila and Radu onto bank ATMs and used fraudulent ATM cards to steal millions of dollars. They used hats, jackets, scarves and sunglasses to disguise themselves while installing the devices and while using the cards to withdraw money.
Ginga, Cotiga, Leusca, Gyapias, Pendus, Revesz, Apetrei, and Radu are in custody and being held without bail. Vintila and the unnamed individual remain at large.
The bank fraud conspiracy charge to which Ginga pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine. The aggravated identity theft charge carries a mandatory, consecutive penalty of two years in prison and a maximum $250,000 fine. Sentencing is currently scheduled for Dec. 18, 2013.
U.S. Attorney Fishman praised special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge James Mottola, along with special agents of Immigration and Customs Enforcement, Homeland Security Investigations in Newark, under the direction of Andrew M. McLees, with the investigation.The government is represented by Assistant U.S. Attorneys Rahul Agarwal and David Eskew of the U.S. Attorney’s Office Criminal Division in Newark.
As for the defendants charged in pending complaints, the charges and allegations are merely accusations, and the defendants are considered innocent unless and until proven guilty.
13-360
Defense counsel:Warren Sutnick Esq., Hackensack, N.J.
Ginga Information
New York Immigration Judge Participates in Naturalization CeremonyRead the Press Release
NEW YORK -- Immigration Judge Terry A. Bain from the Executive Office for Immigration Review, New York Immigration Court, delivered the keynote speech and administered the oath of allegiance to approximately 150 candidates during a naturalization ceremony at 26 Federal Plaza in New York on September 6, 2013. The New York District Office of U.S. Citizenship and Immigration Services, Department of Homeland Security, hosted the ceremony.
Biographical Information
Attorney General Janet Reno appointed Judge Bain in February 1994. Judge Bain received a bachelor of arts degree in 1973 from George Washington University, and a juris doctorate in 1980 from Brooklyn Law School. From 1986 to 1994, she worked as an attorney for Whitman, Breed, Abbott & Morgan in New York. From 1981 to 1986, she worked in private practice with Barst & Mukamal in New York. Judge Bain is a member of the New York State Bar.
- 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 ReviewNew Special Agent in Charge to Lead IRS Criminal Investigation, Cincinnati Field OfficeRead the Press Release
Kathy A. Enstrom has assumed the position of Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), Cincinnati Field Office, a position to which she was appointed by the Chief, Criminal Investigation, Richard Weber, in August 2013.
An 18-year veteran of IRS-CI, Ms. Enstrom began her career in 1995 with IRS-CI in as a student Special Agent in Cedar Rapids, Iowa. Ms. Enstrom was promoted to Special Agent in 1996 and transferred to Chicago, Illinois. During her field assignments, Ms. Enstrom worked various income tax, money laundering and Bank Secrecy Act investigations. Specifically, she was assigned to the Chicago High Intensity Financial Crimes Area Task Force.
Immediately prior to her assignment in Cincinnati, Ms. Enstrom served as a Supervisory Special Agent in Milwaukee, Wisconsin where she supervised agents and support staff in the Green Bay and Milwaukee offices. In 2010, Ms. Enstrom was selected for the Deputy Attaché position in Ottawa, Canada. While in Canada, Ms. Enstrom assisted Special Agents in retrieving information from Canadian authorities, businesses and individuals and developing financial investigations with International connections.
In 2011, Ms. Enstrom was selected as a participant in an IRS pilot program called the Accelerated Senior Leadership Program. This program is designed to accelerate the development and advancement of leaders with the ability, engagement and aspirations to become a Senior Leader or Executive within IRS-CI. As part of this program, Ms. Enstrom was detailed to Refund Crimes in Headquarters as a Senior Analyst. While in Refund Crimes, Ms. Enstrom was the National Return Preparer Program Coordinator, established the IRS-CI Identity Theft Clearinghouse and assisted in the development of the Identity Theft Disclosure Waiver Program. In May 2012, Ms. Enstrom was assigned to the Los Angeles Field Office as the Assistant Special Agent in Charge where she oversaw six groups in the Los Angeles and San Bernardino area.
Ms. Enstrom is a native of Marion, Iowa. She graduated from Mount Mercy University in Cedar Rapids, Iowa in 1996 with a Bachelor’s degree in Accounting and Business Administration. Ms. Enstrom completed her MBA in 2008 at Cardinal Stritch University located in Milwaukee, Wisconsin. Ms. Enstrom is married to Jim Enstrom.
IRS-CI Cincinnati Field Office covers the entire State of Ohio, and includes Posts of Duty in Cincinnati, Dayton, Columbus, Cleveland, Independence, Akron/Canton, and Toledo.
Kathy Enstrom, Special Agent in Charge, IRS, Criminal Investigation, stated, “As forensic accountants, IRS-CI Special Agents are known for their ability to 'follow the money'”. I am committed to making a difference and my office will use all of its resources in order to aggressively investigate individuals and businesses who commit income tax fraud, as well as, those who conspire to conceal their criminal activities.”
Ms. Enstrom is responsible for planning, directing, and evaluating activities of IRS-CI employees in the Cincinnati Field Office. The mission of IRS-CI is to serve the American public by investigating potential criminal violations of the Internal Revenue Code and related financial crimes in a manner that fosters confidence in the tax system and compliance with the law. IRS-CI’s top law enforcement priorities are outlined in the CI Compliance Strategy which is designed to promote tax compliance. IRS-CI’s Program Strategy is comprised of three independent programs: Legal Source Tax Crimes; Illegal Source Financial Crimes; and Narcotics Related Financial Crimes. IRS-CI must investigate and assist in the prosecution of those significant financial investigations that will generate the maximum deterrent effect, enhance voluntary compliance, and promote public confidence in the tax system.
Millington Man Michael A. Lilley Charged with Sex Trafficking of High School TeensRead the Press Release
Memphis, TN – Michael A. Lilley, 49, of Millington, TN was charged today in a criminal complaint with sex trafficking of minor girls from as many as three high schools in West Tennessee, announced U.S. Attorney Edward L. Stanton III and A. Todd McCall, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation.
# # # #
According to facts revealed in a sworn affidavit filed with the complaint, Lilley was recruiting girls as young as 15 years old to work as prostitutes at his home in Millington. Lilley and another individual would provide alcohol and drugs for the girls, who would hang out at an enclosure in his back yard referred to as the “back house.”
One of the victims told authorities that Lilley would bring men to his home for the purpose of engaging in prostitution with the girls. The men paid $60 or $75 per session with the girls, and Lilley gave the girls approximately $30 per customer.
Another victim told authorities that she had sex with men at Lilley’s home, at the homes and trailers of men Lilley set her up to meet, and in a van owned by Lilley while parked in parking lots of various restaurants.
The girls were recruited out of various high schools by a minor boy who advised authorities that he had been working for Lilley for six months. He was paid $20 out of every $100 made by the girls.
Officials first became aware of Lilley’s actions when one of the girls confided what was going on to the school crisis counselor at one of the high schools. The counselor then reported it to the Shelby County Sheriff’s Office.
“The activities alleged in the sworn affidavit, if proven to be true, are reprehensible,” said U.S. Attorney Stanton. “This office remains committed to working with our law enforcement partners to prosecute and bring to justice anyone who exploits children for profit.”
Lilley is scheduled for a detention hearing on Thursday, September 12, 2013. If convicted he faces a minimum of 10 years in prison and a maximum of up to life in prison on each charge.
This case is being investigated by the FBI. Executive Assistant U.S. Attorney Larry Laurenzi and Assistant U.S. Attorney Deb Ireland are representing the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
The charges and allegations contained in the criminal complaint and the affidavit are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Michigan Man Convicted of Traveling to Laredo to Engage in Illicit Sexual ConductRead the Press Release
LAREDO, Texas – Douglas Alan Butler, 54, a U.S. citizen from Michigan, has entered a guilty plea to traveling in interstate commerce for the purpose of engaging in illicit sexual conduct, announced United States Attorney Kenneth Magidson.
According to the record, Butler started communicating with an undercover officer posing as a 15-year-old female by way of a local chat room. Communication started on March 28, 2013, and lasted for approximately a month until the date of his arrest, April 23, 2013.
During the communication, Butler had engaged in conversations that were sexually illicit in nature. Particularly, Butler indicated that he “could teach her so many things.” Additionally, Butler advised that he had plans of traveling to Laredo and expressed a desire to meet her.
Butler had made arrangements to meet the deputy whom he believed to be the minor female at a local city park and promised to bring a “sex toy” during that encounter. He was arrested upon arrival at that park, at which time a pink vibrator was discovered in his car. A subsequent search of his hotel also resulted in the discovery of 13 condoms and 18 Viagra pills.
Butler faces up to 30 years in federal prison and a maximum $250,000 fine at the time of his sentencing, which will be scheduled for a later date by U.S. District Judge Diana Saldana.
The case was investigated by Homeland Security Investigations and the Webb County Sheriff’s Office and is being prosecuted by Assistant United States Attorney Suntrease Williams.
Mexican Sex Offender Sentenced for Failing to Register as a Sex OffenderRead the Press Release
United States Attorney Deborah R. Gilg announced that Bernardo Williams-Jauraqui was sentenced in federal court in Omaha for failing to register as a sex offender. The Honorable Laurie Smith Camp sentenced Williams-Jauraqui to 21 months in prison. After his release from prison Williams-Jauraqui will begin a 5 year term of supervised release.
Bernardo Williams-Jauraqui was convicted on March 15, 2005, of Third Degree Sexual Assault in Douglas County, Nebraska. After sentencing, he was released to Immigration and Customs Enforcement for deportation. Before he was deported, he signed his Nebraska Notification of Sex Offender Registration Responsibilities Form acknowledging his requirement to register as a sex offender until 2020. Williams-Jauraqui was deported to Mexico in December 2005, April 2006 and again in April 2008.
Bernardo Williams-Jauraqui was convicted in September 2007 for failing to register as a sex offender. He was then using the alias Jesus Salas.
On September 26, 2011, Bernardo Williams-Jauraqui was arrested by the Ralston Police Department for Driving Under Suspension. He was using the alias Ebaristo Casanova-Iniguez. Investigation by the United States Marshals Service determined that Williams-Jauraqui was working for a construction company under the name Moises Medina.
Bernardo Williams-Jauraqui had not registered his residence or employment with the Nebraska Sex Offender Registry upon returning to Nebraska. The Marshals Service obtained a complaint and warrant, but Williams-Jauraqui left Nebraska.
On February 1, 2013, Bernardo Williams-Jauraqui was arrested near Nogales, Arizona attempting to illegally enter the United States. He was interviewed by Deputies of the United States Marshals Service on February 5, 2013. He admitted that he was convicted of Third Degree Sexual Assault, was deported and returned to the United States. He admitted working at King Contracting in Lincoln from 2009-2011. He left upon learning that the Marshals Service was investigating him and returned to Mexico. He further acknowledged signing the Sex Offender Responsibilities Form and indicated he was aware of his duty to register as a sex offender.
The case was prosecuted as a part of Project Safe Childhood. Project Safe Childhood is an initiative of the United States Department of Justice designed to protect children from individuals who would exploit them online or offline and includes individuals who travel in interstate commerce and fail to register as sex offenders as required by law. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Maryland Man Found Guilty of Obstruction of JusticeRead the Press Release
For Threatening Witness in Confrontation on Street
Witness Was Murdered Weeks Later;
Slaying Remains Under InvestigationWASHINGTON – Antoine Mayhand, 20, of Capitol Heights, Md., was found guilty by a jury today of obstruction of justice for confronting a witness in a criminal case that was pending at the time against his brother, U.S. Attorney Ronald C. Machen Jr. announced.
The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Stuart G. Nash scheduled sentencing for Nov. 15, 2013.
At trial, the government’s evidence established that on Dec. 11, 2012, Christopher Ballard reported to the police that two men had tried to steal his car and then, when he resisted, shot at him. Mr. Ballard informed the police that he knew one of the assailants as “Unc.” Detectives with the Metropolitan Police Department (MPD) conducted an investigation, and Mr. Ballard identified a man named Delonte Smith as “Unc.”
As a result, on Jan. 30, 2013, Smith was arrested, charged with armed carjacking, and ordered held without bond pending trial. Smith and Mayhand are brothers. They grew up in and frequented the Benning Park area of Southeast Washington, which is where Mr. Ballard lived.
On May 28, 2013, at about 7:15 a.m., Mayhand encountered Mr. Ballard on Benning Road SE. Mayhand said, “I should put a knife on you and stab you!” Mr. Ballard called 911 and reported the threat while he walked up Benning Road to the Sixth District police station. During the following 17 minutes, Mr. Ballard stayed on the line with the dispatcher and Mayhand followed Mr. Ballard down the street. Moments before the police arrived on scene, Mayhand charged at Mr. Ballard as if he was going to assault him. When the police officers stopped Mayhand, and asked him what was going on, he responded, “Man, I don’t have time to f--- with that snitch!” He also told police that Mr. Ballard “got my brother locked up over some bull---.”
The criminal case against Mayhand stemmed from the May 28, 2013 confrontation. Mayhand has been in custody since his arrest that day.
On July 8, 2013, less than 48 hours before he was scheduled to testify in the trial against Delonte Smith, Mr. Ballard, 38, was murdered in Southeast Washington. Smith, 20, was nonetheless convicted of conspiracy to commit a crime of violence, two counts of assault with a dangerous weapon, and multiple related firearms offenses. He is awaiting sentencing.
The murder of Mr. Ballard is under investigation and no arrests have been made.
In announcing the verdict, U.S. Attorney Machen recognized the outstanding efforts of the detectives and officers from the Metropolitan Police Department who investigated the case. He also acknowledged the efforts of Supervisory Paralegal Specialist Anthony Griffith as well as Paralegal Specialists Antoinette Sakamsa and Theresa Nelson. Finally, he commended the work of Assistant U.S. Attorney Peter Lallas, who prosecuted the case.
13-310Mansfield Man Found Guilty of Role in $1.3 Million Mortgage FraudRead the Press Release
A Mansfield man was found guilty of more than two dozen charges in connection with a mortgage fraud scheme which caused approximately $1.3 million in losses to Geauga Savings Bank, J.P. Morgan Chase Bank, Washington Mutual Bank, Interbaby Funding, LLC, and Suntrust Mortgage, Inc, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
David R. Sharrock, age 71, pleaded no contest to 26 counts, including conspiracy, bank fraud, wire fraud, bankruptcy fraud and making false statements.
His daughter, Rhonda J. McElroy, 51, of Bellville, Ohio, also was found guilty for her role in the conspiracy.
Defendants Ronald L Kightlinger, 51, of Crestline, Ohio, and Richard W. Balliett, 45, of Bucyrus, Ohio, previously pleaded guilty to crimes related to their roles.
Sharrock, Balliett, and McElroy sold homes in the cities of Mansfield, Marion, Galion, Plymouth, Shelby, and Bucyrus, Ohio. The sellers made fraudulent misrepresentations to the mortgage lenders by providing undisclosed down payment assistance to the buyers and by submitting fictitious purchase agreements and verifications of deposits. As a result, the sellers signed false settlement statements at closing, according to court documents.
Kightlinger acted as a straw buyer in purchasing a commercial building from David R. Sharrock in Mansfield, according to court documents.
This case is being prosecuted by Assistant United States Attorneys Vasile C. Katsaros and M. Kendra Klump, following an investigation by the Federal Bureau of Investigation.
Man Who Was Arrested After Standoff in Hutchinson Sentenced to Federal Prison on Firearm ChargeRead the Press Release
WICHITA, KAN. - A Wichita, Kan., man who was arrested in Hutchinson in January after a standoff with police has been sentenced to 10 years in federal prison, U.S. Attorney Barry Grissom said today.
Justin L. Wolke, 30, Wichita, Kan., pleaded guilty to one count of unlawful possession of a stolen firearm. In his plea, he admitted that on Jan. 9, 2013, he fled when police officers attempted to stop his car. There was a warrant for his arrest on a parole violation charge. He ran into a residence at 806 N. Monroe in Hutchison. After a standoff lasting several hours, he was arrested. Police seized a rifle from him. They determined the rifle, a Romarm/Cugir, 7.62 x 39, was reported stolen from a residence in Wichita in October 2012.
Grissom commended the Hutchinson Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Lanny Welch for their work on the case.Man Previously Convicted of Transporting Minors to Work as Prostitutes Faces New Charges of Sex Trafficking WomenRead the Press Release
SANTA ANA, California – A Seattle man with a long history of forcing women into the sex trade was arraigned this morning on new charges that accuse him of sex trafficking and could send him to prison for at least another 15 years.
William Earl Flavors, who is sometimes known as “Andre,” 40, pleaded not guilty this morning after a federal grand jury indicted him on one count of sex trafficking by force, fraud or coercion, and two counts of transportation into prostitution. Flavors allegedly brought two victims from Long Beach to Las Vegas where they were forced or coerced to work as prostitutes.
The sex trafficking count carries a mandatory minimum of 15 years in federal prison.
Flavors was previously prosecuted by the United States Attorney’s Office in a case that brought him a 14-year prison sentence in May 2000. In that case, Flavors admitted transporting two teen-age girls from Washington and forcing them to work as prostitutes in Orange County.
Flavors completed his sentence in late 2011 and was on supervised release until October 2012, when he was arrested by Long Beach police after a woman reported being attacked by Flavors. Authorities believe that Flavors began pimping women soon after being released from prison. Flavors pleaded guilty in state court last year to pimping and was sentenced to four years in prison.
In a document filed for the hearing to revoke Flavors’ supervised release, prosecutors wrote: “Placing women into prostitution, in addition to physically assaulting and threatening the women, to ensure that the women stayed with defendant and worked for defendant, cannot be described as anything other than deplorable. The fact that defendant committed these acts while under this court’s supervision for previously beating and forcing minors into prostitution makes the nature and circumstances of defendant’s acts even more appalling.”
United States District Judge Cormac J. Carney earlier this year found Flavors to be in violation of his supervised release, based on his state court pimping conviction. Judge Carney revoked his supervised release and sentenced him to a four-year prison term.
Judge Carney said the “violation offends a woman’s right to liberty, dignity and self-determination. Women have a fundamental right to be free from bodily exploitation and not have their bodies exploited by Mr. Flavors and others as a source of profit.”
At his arraignment, a trial was scheduled for November 5 before United States District Judge Josephine S. Tucker.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The sex trafficking charge carries a potential life sentence and a mandatory minimum sentence of 15 years in federal prison. The two counts of transportation into prostitution each carry a statutory maximum penalty of 10 years in prison.
The new case against Flavors was investigated by the Federal Bureau of Investigation and the Long Beach Police Department.
Release No. 13-113
MS-13 Gang Member Convicted of Murdering Mother and Two Year-Old ChildRead the Press Release
Today, following three weeks of trial, a federal jury in Central Islip, New York returned a verdict convicting MS-13 street gang member Adalberto Ariel Guzman, also known as “Gringo,” on federal criminal charges, including murder, conspiracy to commit murder, and firearms offenses, in connection with the execution-style murders of a mother and her two year-old son. The defendant is facing a sentence of life in prison as a result of his conviction. Sentencing is scheduled for January 9, 2014, before United States District Judge Joseph F. Bianco.
The conviction was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Thomas V. Dale, Commissioner of the Nassau County Police Department.
At trial, the government proved that the defendant Adalberto Ariel Guzman carried out the execution-style murders of Vanessa Argueta, a 19 year-old woman, and Diego Torres, her two year-old son, in Central Islip, New York, on February 5, 2010. The bodies of Argueta and Torres were found in a secluded wooded area in Central Islip. Argueta had been shot in the head and chest, and Torres had been shot twice in the head. The evidence introduced at trial established that Guzman fired the fatal shot to Torres’s head, and after committing the murders, he and two of his co-conspirators fled to El Salvador. Guzman was arrested on May 17, 2010 in Miami, Florida, when he attempted to return to the United States.
Today’s conviction is the third that the government has obtained in connection with the Argueta and Torres murders. Heriberto Martinez, also known as “Boxer,” was convicted in March 2013, following a six-week trial, and Rene Mendez Mejia, also known as “Zorro,” pled guilty to the murders in June 2011.
Guzman’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international street gang comprised primarily of immigrants from El Salvador, Honduras and Guatemala. With numerous branches, or “cliques,” the MS-13 is the largest street gang on Long Island. Since 2002, more than 200 MS-13 members, including more than two dozen clique leaders, have been convicted on federal felony charges in the Eastern District of New York. More than 100 of those MS-13 members have been convicted on federal racketeering charges. Since 2010 alone, this Office has convicted more than 30 members of the MS-13 on charges relating to their participation in one or more murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, Rockville Centre Police Department, and Suffolk County Police Department.
“Guzman and his co-conspirators shot a young mother and her toddler in cold blood. Her crime in their eyes -- showing “disrespect” to their vicious gang. Her child’s -- simply being with her when the defendant and his cronies decided that she could no longer live. Few other acts illustrate so clearly the heartless nature of this criminal enterprise known as MS-13. Guzman will now be held to account for his allegiance to this band of killers,” stated United States Attorney Lynch. Ms. Lynch extended her grateful appreciation to each of the law enforcement agencies for their assistance in this case.
The government’s case is being prosecuted by Assistant United States Attorneys John J. Durham and Raymond A. Tierney.
The Defendant:
ADALBERTO ARIEL GUZMAN, also known as “Gringo”
Central Islip, New York
Age: 21Local Mortgage Broker and Other Investors Sentenced to Prison for Large Mortgage Fraud SchemeRead the Press Release
PORTLAND, Ore. – David Ovist, 45, of Lake Oswego, Oregon, was sentenced today for his role in a $2.5 million mortgage fraud scheme that involved four other investors who were also sentenced recently. U.S. District Court Judge Anna J. Brown sentenced David Ovist to 57 months in prison and three years of supervised release.
Ovist was a licensed mortgage loan broker and the owner of Oregon Mortgage Services, Inc., located in Beaverton, Oregon. He was also a real estate investor. On February 8, 2013, Ovist was convicted of bank fraud and wire fraud following a ten-day jury trial for preparing residential loan applications for 12 different properties that falsified the borrower’s financial qualifications. The applications were then submitted by Ovist to seven different banks and mortgage lenders. Ovist and the other investors manipulated the underwriting process in order to qualify borrowers for home loans they would not otherwise be qualified for so the investors could buy houses as an investment.
To convince lenders to approve the loans, Ovist or the other investors falsified information about borrowers who had been recruited to obtain loans in their names because they had good credit, even though they could not otherwise qualify for the loans. They falsely inflated the monthly income stated on the home loan applications, omitted liabilities including other mortgages, falsely claimed that the borrower intended to live in the property as a primary residence rather than purchase it as an investment property, used straw buyers to obtain loans for some of the properties, forged rental agreements to make it appear as if a borrower received rental income when she did not, and falsified employment verifications about the existence, nature and length of a borrower’s employment.
“Mortgage fraud undermines our financial institutions and continues to be a burden on the economy,” said U.S. Attorney Amanda Marshall. “Brokers who abuse their authority and lie in order to help greedy investors cheat our financial institutions will go to prison.”
Judge Brown recently sentenced four other investors for their roles in the scheme. Don Kazlauskas, 46, of Portland, Oregon, was sentenced to six months in prison, followed by six months of home detention and three years of supervised release. Jacob Shoop, 30, of Portland, Oregon, was sentenced to six months of home detention, and three years of supervised release. Shoop’s father, Ricki Shoop, 58, of Portland, Oregon, was sentenced to two months of home detention, and three years of supervised release, and his mother, Sherrie Inouye, 58, of Portland, Oregon, was sentenced to three years of supervised release. The Court scheduled a restitution hearing for October 10, 2013 to determine how much restitution each of the defendants owes to the victims.
At the sentencing of Ovist, Judge Brown stated, “The criminal conduct here is so repetitious and so serious that it requires a prison sentence.” The Court rejected the notion that a white-collar defendant with no criminal record should be sentenced to probation saying, “Somehow the notion is that prison isn’t going to happen. But it does.”
“We will relentlessly pursue those who engage in mortgage fraud and others who seek to undermine the integrity of our economy,” said Greg Fowler, Special Agent in Charge of the FBI in Oregon.
The case was investigated by the Portland office of the Federal Bureau of Investigation, and was prosecuted by Assistant U.S. Attorneys Scott Erik Asphaug and Hannah Horsley.
Leader of International Drug Trafficking Conspiracy Sentenced to 15 Years ImprisonmentRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Ronaldo Edmund, age 38, of Wilmington, Delaware, was sentenced on September 9, 2013, to a term of imprisonment of fifteen (15) years for his role as a leader of an international drug trafficking conspiracy.
According to facts introduced in prior hearings, Edmund was the leader of an organization which recruited multiple drug couriers to travel to Panama in order to smuggle cocaine and heroin into the United States. Edmund, a Panamanian national, facilitated and coordinated the travel of the couriers to Panama, and he maintained and managed contact with the Panamanian sources of supply. Agents identified a total of at least nineteen (19) couriers who took smuggling trips to Panama on behalf of the organization, and who smuggled, or attempted to smuggle, more than thirteen (13) kilograms of cocaine and five kilograms of heroin from Panama to Wilmington.
The investigation also uncovered a separate source of supply, Saleem A. Sharif, a former West Point graduate and Captain in the United States Army, who shipped multiple kilograms of heroin from Kabul, Afghanistan, to the United States. Sharif and three other individuals – Charles Richardson, Darrold Thomas, and Sayeed A. Behrooz – have pleaded, or are scheduled to plead guilty, to offenses relating to the shipment of heroin from Afghanistan.
To date, the government has charged twenty-three individuals in the United States with drug trafficking offenses as a result of the investigation. All but four of those defendants – each of whom remain abroad in Panama – have pleaded guilty, or have agreed to plead guilty, to drug-related offenses. A listing of the charged defendants and their current status is set forth in Attachment A.
United States Attorney Charles M. Oberly, III, stated, “I commend the hard work and relentless dedication of our law enforcement partners over the past four years in dismantling two major drug trafficking organizations that imported cocaine and heroin from Panama and Afghanistan into the United States. The fact that these drugs made it onto the streets of Wilmington and our surrounding communities demonstrates the reach of international drug trafficking organizations – and the importance of utilizing all necessary resources to stop them. The sentence imposed on Mr. Edmund is significant, reflects his leadership role in the offense, and should serve as a serious deterrent for others in the community who would consider getting involved in international drug smuggling.”
The investigation was led by the Drug Enforcement Administration, the Department of Homeland Security – Homeland Security Investigations, the Internal Revenue Service – Criminal Investigation Division, and the Wilmington Police Department.
Investigators also received invaluable assistance from the Panamanian National Police; the United States Attorney’s Office for the Southern District of Texas; the United States Marshals Service for the District of Delaware; the Newark (Delaware) Police Department; the Delaware State Police; the New Castle County Police Department; the Delaware Department of Corrections, Probation and Parole; the Cecil County (Maryland) Drug Task Force; the Pennsylvania State Police; the Maryland State Police; and the Elkton (Maryland) Police Department.
This case is being prosecuted by Assistant United States Attorney Robert F. Kravetz. For further information, contact Press Information Officer Kimberlynn Reeves at (302) 573-6277, ext. 16287.
ATTACHMENT A
Defendant District Case No. Status
Status of Defendants Charged in Panama/Afghanistan Drug InvestigationTissany Buckham
Delaware
11-63-RGA
Sentenced on April 10, 2013, to 22 months imprisonment
Kimberly Fowler
Delaware
11-63-RGA
Completed pretrial diversion on November 6, 2012
Kelvin Cook
Delaware
11-63-RGA
Sentenced on June 20, 2013, to 180 months imprisonment
Julio Archer
Delaware
11-63-RGA
Sentenced on June 11, 2013, to 60 months imprisonment
Roumik Banerjee
Delaware
11-63-RGA
Sentenced on April 3, 2013, to 57 months imprisonment
Mia Poteat
Delaware
11-63-RGA
Sentenced on April 3, 2013, to 37 months imprisonment
Tina Simmons
Delaware
11-63-RGA
Sentenced on May 7, 2013, to three years’ probation and six months home detention
Tessa Snyder
Delaware
11-63-RGA
Pleaded guilty on May 18, 2012; pending sentencing
Dynisha Revel
Delaware
11-63-RGA
Charged defendant, currently incarcerated in Panama
Raabia Munir
Delaware
11-63-RGA
Charged defendant; a plea hearing is scheduled for October 16, 2013
Sharon Butera
Delaware
11-63-RGA
Charged defendant, currently incarcerated in Panama
Efrain Dixon
Delaware
11-63-RGA
Charged defendant, Panamanian national
Benjamin Carpenter
Delaware
11-63-RGA
Charged defendant, Panamanian national
Tara Resto
Delaware
09-102-GMS
Pleaded guilty on April 13, 2010; sentencing hearing scheduled for September 26, 2013
Kevin Morris
Delaware
12-41-RGA
Pleaded guilty on July 25, 2012; sentencing hearing scheduled for October 22, 2013
Saleem A. Sharif
Delaware
12-53-RGA
Sentenced on September 4, 2013, to 120 months imprisonment
Charles Richardson
Delaware
12-44-RGA
Sentenced on January 29, 2013, to 60 months imprisonment
Darrold Thomas
Delaware
12-65-RGA
Sentenced on August 27, 2013, to 54 months imprisonment
Sayeed A. Behrooz
Delaware
13-93-RGA
Charged defendant; plea hearing scheduled for October 15, 2013
Neisha Miller
Southern Dist. of TX
5: 11-43-01
Sentenced on September 20, 2011 to 36 months imprisonment
Gloria Miller
Southern Dist. of TX
5: 11-43-02
Sentenced on September 20, 2011 to 36 months imprisonment
Christine A. Blevins
Southern Dist. of TX
5: 09-388-01
Sentenced on March 4, 2010, to 60 months imprisonment
Bridgette Davidson
Southern Dist. of TX
5: 09-388-02
Sentenced on March 12, 2010, to 60 months imprisonment
Lafayette Man Pleads Guilty to Selling Fake Apple MerchandiseRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that Brennan LeBlanc, 37, of Lafayette, pleaded guilty Friday before U.S. District Judge Richard T. Haik to trafficking in counterfeit Apple Inc. products.According to evidence presented at the guilty plea, in May of 2012 Apple Inc. investigators informed U.S. Homeland Security investigators that Iphonelafayette.com, which LeBlanc owns andlocated on Kaliste Saloom Road in Lafayette, was selling counterfeit iPhone merchandise. Apple investigators told authorities that the Lafayette company’s website had several pictures containing counterfeit items.
On May 9, 2012, HSI agents along with a private investigator working for Apple entered the Kaliste Saloom store. The private investigator was an industry representative who specialized in trademark and copyright infringement investigations. The investigator purchased several covers displaying the brand insignia for Louis Vuitton, Coach, Otter Box and Apple for $100; the cases purchased were counterfeit. Additionally, on January 15, 2013, an undercover Louisiana State Police trooper purchased an Apple iPhone sleeve and Luis Vuitton case from the store, which were also determined to be counterfeit. The undercover trooper spoke with Leblanc who advised that additional similar counterfeit cases would be delivered the next week.
On January 25, 2013, HSI searched the business and discovered numerous counterfeit items, including 31 Louis Vuitton iPhone cases, 8 Coach iPhone cases, 241 Otter Box iPhone cases and 427 Apple iPhone cases. LeBlanc admitted that all of the cases were counterfeit.
LeBlanc faces up to 10 years in prison, a $2 million fine and three years of supervised release for trafficking in counterfeit goods or services. A sentencing date was not set.
Homeland Security Investigations, Louisiana State Police and Apple Inc. conducted the investigation. Assistant U.S. Attorney Myers P. Namie is prosecuting the case.