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Monday 9 September 2013
Kankakee Businessman Enters Guilty Pleas to Filing False Tax Returns and StructuringRead the Press Release
Urbana, Ill. – The owner of ABC Disposal Inc., a Kankakee waste management company, has entered pleas of guilty to six counts of filing false income tax returns and one count of structuring cash withdrawals to avoid detection by the Internal Revenue Service. Joseph S. Deno appeared in federal court in Urbana on Friday, Sept. 6, 2013, and pled guilty before U.S. Magistrate Judge David G. Bernthal. Sentencing has been scheduled for Jan. 9, 2014.
During court proceedings and in documents filed with the court, Deno, the sole shareholder, owner and operator of ABC Disposal, Inc., admitted that from 2005 through 2010, in order to lower his individual gross income, he withheld financial records from his tax preparer. This resulted in under-reporting his company’s gross receipts by approximately $1.7 million for the tax years from 2005 through 2010, and underpayment of his federal income taxes.
Deno also pled guilty to one count of structuring cash withdrawals from three bank accounts on 22 occasions over a one-year period, from March 2010 to March 2011. In 2010, Deno decided to retire and wanted to access the funds he had hidden from his accountant and the IRS. To avoid a Currency Transaction Report from being prepared by his bank and sent to federal authorities, he withdrew cash from his accounts in amounts just under the $10,000 threshold, for a total of $190,700. Financial institutions are required to complete and file CTRs with the IRS for any currency transactions in excess of $10,000.
According to court documents, Deno has already paid full restitution to the IRS in the amount of $905,261, for unpaid income taxes, plus interest and penalties.
Each count of filing a false income tax return carries a penalty of up to three years in prison and fines of up to $100,000. For unlawful money structuring, the penalty is up to 10 years in prison. The government is also seeking a money judgment against Deno in the amount of $190,700.
The Internal Revenue Service, Criminal Investigation Division conducted the case investigation. Assistant U.S. Attorney Eugene L. Miller is representing the government in the prosecution of the case.Justice Department to Monitor Elections in Ohio and New YorkRead the Press Release
The Justice Department announced today that it will monitor elections on Sept. 10, 2013, in Cuyahoga County, Ohio, and in Queens County, N.Y. The monitoring will ensure compliance with the Voting Rights Act, which prohibits discrimination in the election process on the basis of race, color or membership in a minority language group.
In Cuyahoga County, the Department will assign federal observers from the U.S. Office of Personnel Management (OPM) to monitor polling place activities based on a court order. The observers will watch and record activities during voting hours at polling locations in this jurisdiction, and Civil Rights Division attorneys will coordinate the federal activities and maintain contact with local election officials.
In addition, Justice Department personnel will monitor polling place activities in Queens County. A Civil Rights Division attorney will coordinate federal activities and maintain contact with local election officials.
Each year, the Justice Department deploys federal observers from OPM, as well as departmental staff, to monitor elections across the country. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Visit www.justice.gov/crt/about/vot/ for more information about the Voting Rights Act and other federal voting rights laws.
Justice Department Reaches Settlement with Staffing Company to Resolve Immigration-related Unfair Employment PracticesRead the Press Release
The Justice Department announced today that it reached an agreement with Kelly Services Inc., a staffing company based in Troy, Mich., resolving an allegation of discrimination based on citizenship status during the employment eligibility re-verification process at one of its branch locations in Schaumburg, Ill. The investigation was initiated by the department’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) based on information obtained from a former employee of the company who had contacted that office.
The department’s investigation concluded that Kelly Services terminated the individual’s employment during the employment eligibility re-verification process when he did not produce a new U.S. Citizenship and Immigration Services (USCIS)-issued document, even though he had a valid unrestricted Social Security card at the time that was also acceptable to show continued employment eligibility. To resolve the matter, Kelly Services has agreed to compensate the former employee for lost wages in the amount of $1,888.60 and pay a $1,100 civil penalty to the United States. Designated Kelly Services staff will also participate in Justice Department training on employers’ responsibilities under the anti-discrimination provision of the Immigration and Nationality Act (INA).
OSC is responsible for enforcing the anti-discrimination provision of the INA. For more information about protections against employment discrimination under the immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired), sign up for a free webinar at www.justice.gov/about/osc/webinars.php , email [email protected] or visit the website at www.justice.gov/crt/about/osc
Informational: Federal Court Initial AppearanceRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on September 9, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, the following individual appeared:
JORDAN LINN GRAHAM, a 22-year-old resident of Kalispell, made an initial appearance on a complaint alleging murder in the second degree of Cody Lee Johnson. She is currently detained.
If charged with murder in the second degree, GRAHAM faces possible penalties of life in prison.
Assistant U.S. Attorney Zeno B. Baucus is the prosecutor for the United States.
The investigation was a cooperative effort between the Kalispell City Police Department, the Flathead County Coroner, the Federal Bureau of Investigation, and the National Park Service.
A complaint is merely a written statement of the essential facts constituting the offenses charged.
Idaho Falls Man Sentenced for Meth TraffickingRead the Press Release
POCATELLO – John Robert Anderson, 34, of Idaho Falls, Idaho, was sentenced today to 24 months in prison followed by four years of supervised release for possession with intent to distribute in excess of five grams of actual methamphetamine, U.S. Attorney Wendy J. Olson announced. Anderson was sentenced by Senior U.S. District Judge Terry J. Hatter, Jr., at the federal courthouse in Pocatello. He pleaded guilty to the charge on February 7, 2013.
According to the plea agreement, on August 29, 2012, law enforcement officers arrested Anderson in Idaho Falls for outstanding warrants. A subsequent search revealed Anderson was in possession of 19 grams of a substance containing 17.36 grams of methamphetamine, a digital scale disguised as a cell phone, and baggies. Anderson admitted he possessed the methamphetamine with the intention of distributing it to another person.
The indictment was a result of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), including the Idaho State Police, Bonneville County Sheriff's Office, Idaho Falls Police Department, Madison County Sheriff's Office, Rexburg Police Department, Bingham County Sheriff’s Office, Fremont County Sheriff’s Office, Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Other federal agencies participating in the OCDETF program include the Drug Enforcement Administration and the U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Houston Woman Gets Federal Prison for Embezzling from BankRead the Press Release
HOUSTON – Hannah Gonzales, 24, of Houston, has been ordered to prison for two years and ordered to pay $55,000 in restitution for embezzling customer funds from the International Bank of Commerce (IBC), announced United States Attorney Kenneth Magidson. She pleaded guilty to the charges June 6, 2013.
Gonzales, an assistant branch manager at IBC, began withdrawing money from customers' CD accounts without their authorization beginning in 2010. By the time she was fired in July 2011, she had withdrawn almost $100,000.
According to records, Gonzales chose customers who were either elderly or out of the country in order to reduce the chance that she would get caught.
Gonzales also took money from her teller boxes without authorization. IBC records demonstrated that she was able to do this by conducting transactions in which there was no customer and by simply taking customer's cash deposits and not placing the cash into her teller box. On the day she was fired, IBC's audits revealed she was short approximately an additional $24,000.
U.S. District Court Judge Vanessa D. Gilmore, who presided over the case, has permitted her to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the U.S. Secret Service. Assistant United States Attorney Sharad S. Khandelwal prosecuted the case.
Houston Man Sent to Prison for Distributing and Possessing Child PornographyRead the Press Release
HOUSTON - Charles Wright, 59, of Houston, was ordered to serve 20 years in federal prison following his convictions of distribution and possession of child pornography, announced United States Attorney Kenneth Magidson. Wright was convicted Feb. 6, 2013, by a federal jury on both counts as charged.
Today, U.S. District Judge Kenneth Hoyt, who presided over the trial, ordered Wright into custody for 210 and 30 months, respectively, for the distribution and possession charges. The sentences are to be served consecutively for a total of 240 months in federal prison. The issue of restitution for known victims will be decided at a separate hearing on or before Nov. 18, 2013. He was further ordered to serve the rest of his life on supervised release following completion of the prison term and will have to register as a sex offender.
These charges were the result of an investigation conducted by the FBI Innocent Images Task Force which revealed Wright was making child pornography available to others through the use of Peer to Peer software over the Internet. A task force officer from the Houston Police Department downloaded images of child pornography from the files Wright was making available online. These images included children under 12 being sexually violated by adults and in positions which caused their genitalia to be displayed in a lewd/lascivious manner.
A search warrant was executed on Sept. 14, 2011, at which time computer media including external hard drives were seized. The examination of the computer revealed more than 250 digital images and approximately 53 videos which contained child pornography.
Wright has been in state custody since his arrest on similar state charges on Sept. 14, 2011, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."This case is being prosecuted by Assistant United States Attorney Sherri L. Zack who was assisted at trial by Assistant United States Attorney Robert Stabe.
Hereford House Owner, Two Others Sentenced for Fire that Destroyed Landmark RestaurantRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an owner of the Hereford House restaurant and two men he hired were sentenced in federal court today for their roles in an arson conspiracy that destroyed the landmark downtown Kansas City restaurant on Oct. 20, 2008.
“These defendants torched a landmark restaurant in order to cheat the insurance company out of millions of dollars,” Dickinson said. “They deliberately created a violent explosion and an inferno that endangered the lives of many others. Their greed and deceit easily could have been lethal, not only for innocent neighbors and passersby, but for firefighters and other first responders. I’m satisfied that today’s sentences reflect the significance of their crimes and justly hold them accountable for their actions.”
Rodney J. Anderson, 60, Vincent Pisciotta, 59, and Mark A. Sorrentino, 47, all of Kansas City, were sentenced in separate hearings before U.S. District Judge Greg Kays. Anderson was sentenced to 15 years in federal prison without parole. Pisciotta was sentenced to 20 years in federal prison without parole. Sorrentino was sentenced to 15 years in federal prison without parole. The court is taking under advisement the recommendation for the defendants to pay $1,440,219 in restitution, for which they would be jointly and severally liable.
“After four years of tireless work by ATF and our partners, we are proud that these three men have been brought to justice,” said ATF Special Agent in Charge Marino F. Vidoli. “An iconic Kansas City landmark was destroyed as a result of greed; thankfully no one was injured or killed as a result of this violent crime.”
Anderson, Pisciotta and Sorrentino were each convicted at trial of one count of conspiracy, one count of arson and one count of using fire to commit a federal felony. Anderson was also found guilty of one count of mail fraud. They have been in federal custody since the conclusion of the trial on Oct. 31, 2012.
Anderson is a co-owner of B & C Restaurant Corporation, a holding company that owned the Hereford House restaurant business. Anderson is also a co-owner of Hereford K.C. Realty, LLC, which owned the building at 2 E. 20th Street, Kansas City, Mo., in which the Hereford House was located, and a co-owner of Skivers Corporation, a restaurant management company that managed the Hereford House and other area restaurants.
Evidence introduced during the trial indicated that in 2007 and 2008, the Hereford House restaurant at the downtown location was struggling financially. The struggles stemmed from the need to upgrade or remodel the aging restaurant and from the increased competition from new restaurants at the Power and Light District. Anderson sought offers to buy the property, remodel the property and lease the property back to his restaurant operating group. In August 2008, the last offer Anderson received was too costly to make the transaction profitable. In 2008, Anderson personally infused hundreds of thousands of dollars into the restaurant and was on the verge of personal bankruptcy. The sources of Anderson’s cash infusion included high-rate business “payday” loans, and money from his 401(k), his mother’s IRA and from his children’s trust accounts.
Anderson hired Pisciotta to set fire to the restaurant in order to collect the insurance proceeds that would pay for the remodeling that was needed for the restaurant to regain its prominence. Anderson met with Pisciotta at the Hereford House on Sept. 27, 2008. Anderson showed him around for about 50 minutes and gave him a key and a security alarm code so that Pisciotta and Sorrentino could gain entry into the Hereford House and deactivate the security alarm system.
On Oct. 12, 2008, Pisciotta and Sorrentino (accompanied by an unidentified co-conspirator) used the key and alarm code Anderson had provided to enter the Hereford House and conduct a walk-through in preparation for setting fire to the building.
On Oct. 19, 2008, Pisciotta used the key and security code to enter the Hereford House shortly before midnight. A short time later, Sorrentino arrived with the unidentified co-conspirator in a white van and the three men unloaded 14 plastic containers. Those five-gallon containers were filled with gasoline and were placed throughout the bar area of the restaurant. They were punctured in a manner to allow the gasoline to leak out in the area along with a large volume of gasoline fumes. They used a delayed ignition device that allowed the gasoline fumes to ignite in a manner that created an explosion. They also shut off the water supply to the fire suppression system and deactivated any alarm or warning mechanism for firefighters and other authorities.
At approximately 12:44 a.m. on Oct. 20, 2008, a 911 call dispatched the Kansas City Fire Department to the restaurant after an explosion at the location. The fire department arrived quickly and was able to extinguish the fire, although the restaurant was destroyed.
Anderson was out of town at the time of the arson and the company’s CFO provided the ATF with the digital video surveillance from the restaurant’s surveillance cameras. Anderson’s meeting with Pisciotta on Sept. 27, 2008 was captured on the video surveillance, along with the Oct. 12, 2008 walk-through by Pisciotta and Sorrentino. Additionally, on Oct. 19-20, 2008 Pisciotta and Sorrentino can be seen on the video surveillance unloading the plastic containers of gasoline and placing them in the bar area of the restaurant before setting an ignition device.
About a month after the fire, Anderson requested an advance payment of $300,000 from Travelers Property Casualty Company of America, which provided insurance coverage for the building and contents of the Hereford House. The check, which was sent by Travelers via overnight delivery, provides the basis for the mail fraud charge in Count Three of the indictment. Anderson also claimed a loss of $962,593 on the Hereford House building and a loss of $1,459,505 on behalf of B & C Restaurant Corporation, for a total claimed loss of $2,422,098.
This case was prosecuted by Assistant U.S. Attorneys Jess E. Michaelsen and Paul S. Becker. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas City, Mo., Police Department, the Kansas City, Mo., Fire Department and the FBI.Franklin County Man Pleads Guilty to Drug ChargeRead the Press Release
JOHNSTOWN, Pa. - A resident of Waynesboro, Pa., pleaded guilty in federal court to a charge of conspiracy to distribute cocaine, United States Attorney David J. Hickton announced today.
Kenneth Biser, 59, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that Biser conspired to possess and distribute 500 grams or more of cocaine from Nov. 2011 to July 18, 2012.
Judge Gibson scheduled sentencing for February 6, 2014, at 10 a.m. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Biser on bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Safe Streets Task Force initiative comprised of the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pa. Attorney General's Office, the Blair County Drug Task Force, the Cambria County Drug Task Force, the Somerset County Drug Task Force, the Roaring Spring Borough Police Dept. and the Paint Township Police Dept. conducted the investigation that led to the prosecution of Biser.
Former Toledo Teacher Sentenced to Six Year in Prison for Child Pornography CrimeRead the Press Release
A Toledo man was sentenced today to more than six years in prison for receipt of child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Bruce Omlor, age 50, was sentenced to 75 months in prison after pleading guilty earlier this year to one count each of receipt of child pornography. The conduct occurred between June 2009 and April 2012, according to court documents.
“This sentence should send a warning to those that would become involved with child pornography,” Dettelbach said.
“Today’s sentencing emphasizes the serious consequences that await those who are engaged in any way with child pornography,” said William Hayes, acting special agent in charge of HSI Detroit, which covers Michigan and Ohio. “This case was particularly troubling because of Mr. Omlor’s position of public trust as an educator. HSI will continue to work closely with its law enforcement partners to protect our children and ensure that online predators feel the full weight of the law.”
The investigating agency in this case is the United States Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Cleveland. The case is being prosecuted by Assistant United States Attorney Gene Crawford.
Former Student Sentenced for Making False 911 Call Concerning Alleged Gunman at UVa-WiseRead the Press Release
ABINGDON, VIRGINIA – Bryant Alexander Hairston, 20, of Martinsville, Virginia, was sentenced today, in the United States District Court for the Western District of Virginia, in Abingdon, to the five days of jail time already served and supervised release for a term of two years for his conviction of one count of making false statements in a matter within the jurisdiction of the Executive Branch of the United States and one count of making false statements under oath. United States District Judge James P. Jones also ordered that Hairston make restitution in the amount of $4,010.00 to reimburse the various law enforcement and counseling agencies for their costs in responding to the 911 call and dealing with traumatized students.
On January 23, 2013, Hairston told a 911 dispatcher there was a gunman on the campus of the University of Virginia’s College at Wise (“UVa-Wise”) who was trying to get into one of the residence halls. Hairston told the dispatcher that the man had a pistol. The campus was placed on lock down and law enforcement officers from various agencies responded to the scene. Armed officers went door to door through the residence hall searching for the alleged gunman. While the search was ongoing, Hairston made statements indicating he was happy that he had saved the lives of his fellow students. Officers became suspicious of Hairston and questioned him. After some time, Hairston admitted he had made up the story about a man having a gun because he wanted to look like a hero.
“When Mr. Hairston falsely claimed to have seen a gunman on the campus of UVa-Wise, he instigated an immediate emergency response and caused significant stress among his fellow students and their families,” United States Attorney Timothy J. Heaphy said today. “Upon hearing of his despicable lie, students barricaded themselves in rooms and parents worried their children would become victims of another mass shooting. Hairston created a highly charged and dangerous situation for law enforcement and others. His false report reignited the fear that lingers in our district, which has experienced the awful reality of campus violence in our recent past. Our aggressive pursuit of this case demonstrates our desire to hold accountable those who make false reports to law enforcement. An act like this, which in years past may have been viewed as a harmless hoax, is now extremely serious and warrants a felony conviction.”
The government’s investigation uncovered evidence that another resident of Hairston’s residence hall was at the door on the evening of January 23, wearing a ski mask because of the cold weather, and had asked Hairston to let him in. Hairston did not open the door and raced upstairs. At today’s sentencing hearing, Hairston testified that after running upstairs he falsely told a fellow student that a man with a gun was trying to get into the building and then repeated the lie to the 911 operator and various responding law enforcement officers. Hairston admitted he never saw a gun. At today’s hearing, Hairston expressed remorse for his conduct, stating “I know it was wrong to say that there was a gun when there was not and I am very sorry I scared so many people at my college and caused so much trouble for the police.”
Hairston previously pled guilty to these charges on May 31, 2013, pursuant to a plea agreement. Pursuant to the plea agreement, the government agreed to recommend the sentence that the Court imposed today.
The investigation of the case was conducted by the police departments of UVa-Wise, Pound, and Wise; the Wise County Sheriff’s Office; the Virginia State Police; and the Bristol Office of the Federal Bureau of Investigation. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Former St. Louis Parks Division Deputy Commissioner and Chief of Park Rangers Plead Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – JOSEPH VACCA, Former Deputy Commissioner of the St. Louis Parks Division, and THOMAS STRITZEL, Former Chief of the St. Louis Park Rangers, pled guilty to charges that they defrauded the City of St. Louis of approximately one-half million dollars by submitting false invoices for materials and services supplied to the Parks Division. Both defendants appeared before United States District Judge Jackson in St. Louis.
According to court documents, from January 1, 2005, to December 31, 2012, Vacca and Stritzel embezzled funds of the City of St. Louis based upon the submission of sham and false invoices which included false charges of approximately $464,722. They used the funds for their own personal use, including lease payments on personal vehicles, fuel costs, the payment of personal credit card charges and other personal living expenses unrelated to the legitimate operations of the St. Louis Parks Division.
Vacca and Stritzel set up a sham company called Dynamic Management and then funneled city funds received through the submission of false and sham invoices to Dynamic Management’s bank account. Vacca and Stritzel then used those fraudulently obtained funds for their own personal use, including leasing personal vehicles, payment of fuel costs and the payment of personal credit card charges.
These charges carry a penalty range of twenty (20) years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Sentencings have been set for December 12, 2013.
This case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.Former Pacific Palisades Man Sentenced to Four Years in Prison for Investment and Mortgage Fraud SchemeRead the Press Release
SAN FRANCISCO – Robert Hans Schenk was sentenced on September 6, 2013, to four years in prison for wire fraud, United States Attorney Melinda Haag announced.
Schenk pleaded guilty on September 2, 2011, to one count of conspiracy to commit wire fraud and eight counts of wire fraud. In his plea agreement, Schenk admitted that he fraudulently induced numerous individuals to invest millions of dollars in his businesses, Griffin Digital Services and Smartworld Solutions. Schenk admitted to using much of those funds to pay his family’s personal expenses. In addition to this investment fraud scheme, Schenk also admitted to using the identity of one of the investors without his knowledge and fraudulently obtained a $1.7 million mortgage refinancing loan in that investor’s name. The mortgage refinancing loan was used for the home in which Schenk and his family lived in Pacific Palisades, California.
Schenk, 52, was arrested on January 4, 2011, and has been in federal custody since that date. He was indicted by a federal grand jury on January 11, 2011. He was charged in an Indictment with one count of conspiracy to commit wire fraud, eight counts of wire fraud, and two counts of aggravated identity theft.
The sentence was handed down by The Honorable Susan Illston, U.S. District Judge, following a guilty plea to one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and eight counts of wire fraud, in violation of Title 18, United States Code, Section 1343. Judge Illston also sentenced the defendant to a three-year period of supervised release and ordered him to pay a total of approximately $4.5 million in restitution to various individual victims and to the mortgage lender that suffered a loss with respect to the $1.7 million mortgage refinancing loan.
Kyle F. Waldinger is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rayneisha Booth. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Former Orleans Parish Bail Bondswoman, Tynekia Buckley, Charged with ConspiracyRead the Press Release
TYNEKIA BUCKLEY, age 41, a resident of New Orleans, was charged with Conspiracy to Commit Honest Services Mail Fraud, Wire Fraud, and Unauthorized Access to a Protected Computer today in a one-count Bill of Information, announced U. S. Attorney Dana Boente.
According to court documents, BUCKLEY, who worked as a licensed bail bondswoman in New Orleans from 2004 through 2012, conspired with an un-licensed bail bondsman to give cash and things of value to Lear Enclarde, a former assistant bond clerk in the Orleans Parish Criminal Clerk’s Office, in exchange for Enclarde’s permitting the unlicensed bondsman to use BUCKLEY’S name and bonding license, and to forge BUCKLEY’S signature on official court documents.
According to additional court documents, BUCKLEY conspired with that same un-named and un-licensed bail bondsman to give cash and things of value to Gilishia Garrison, a former assistant bond clerk and a former part-time employee of the Orleans Parish Criminal Sheriff’s Office, in exchange for Garrison’s illegal and un-authorized release of criminal defendants from the Orleans Parish Prison.
Both Enclarde and Garrison have pleaded guilty to the conduct charged in the Bill of Information.
If convicted, BUCKLEY faces a maximum term of imprisonment of 5 years, a fine of $250,000 and 3 years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation, the New Orleans Police Department, the Orleans Parish District Attorney’s Office, and the United States Attorney’s Office.
The case is being prosecuted by Assistant U. S. Attorneys Dan Friel and Edward Rivera.
(Download Bill of Information )
Former Fort Lauderdale Securities Professional Sentenced for Obstruction of Proceedings and Providing False Testimony Before the U.S. Securities and Exchange CommissionRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Robert J. Vitale, 42, of Ft. Lauderdale-by-the-Sea, Florida, was sentenced today to 24 months imprisonment, a $50,000 fine, and three-years supervised release by U.S. District Judge Joan A. Lenard. Vitale was convicted of obstruction of proceedings and providing false testimony before the U.S. Securities and Exchange Commission (SEC).
According to court documents, in or around May 2012, the SEC was conducting an official investigation into allegations that Vitale engaged in violation of the securities laws. As part of the investigation, the SEC attempted to identify assets and bank accounts attributable to Vitale. On or about June 4, 2012, Vitale completed and provided to the SEC, a “Background Questionnaire” form purporting to list bank accounts and other assets attributable to him. Shortly before completing the questionnaire, Vitale transferred $100,000 from an account that was disclosed on the form, to a separate account that he controlled.
According to court documents, Vitale willfully failed to disclose the existence of the funds or the bank account holding the funds, to the SEC. Thereafter, on June 5, 2012, Vitale provided sworn testimony to the SEC at the SEC’s Southeast Regional Offices, in Miami, Florida. During this sworn testimony, Vitale provided false testimony about his assets and accounts, as well as the accuracy of the information provided on the form he had submitted to the SEC.
Previously, in an unrelated matter, Vitale was charged civilly with violating securities laws in 2004, and was the subject of Final Judgment in SEC v. Robert Vitale, et al., No. 04-60493 (the “2004 Case”), in which he was ordered to pay disgorgement and civil penalties for violations of the federal securities laws. According to court records, as of June 2012, when he provided false sworn testimony and engaged in conduct designed to conceal his assets, Vitale had failed to satisfy his obligations from the 2004 Case.
In addition to the sentence of 24-months imprisonment and $50,000 fine, during the defendant’s three-year supervised release term, he was ordered to have no involvement in the securities or real estate industries, and no involvement in any investment business absent court permission.
Mr. Ferrer commended the investigative efforts of the FBI and the SEC. The matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Davenport Man Sentenced for Receiving Child PornographyRead the Press Release
DAVENPORT, IA - On September 6, 2013, David Adair Woolison, age 34, formerly from Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 70 months in prison, after pleading guilty to receiving child pornography, announced United States Attorney Nicholas A. Klinefeldt. Judge Rose also ordered Woolison to serve five years of supervised release following imprisonment, register as a sex offender, and pay $100 towards the Crime Victims Fund. Woolison admitted to receiving child pornography from November 2008 to April 2011.
This case was investigated by the Iowa Internet Crimes Against Children Task Force, Dewitt, Iowa, Police Department and the Davenport, Iowa, Police Department, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Former Customs and Border Protection Officer Sentenced to More Than Six Years for Receiving Bribes to Allow Aliens to Enter the U.S. IllegallyRead the Press Release
Former Customs and Border Protection Officer Hector Rodriguez was sentenced today by U.S. District Judge Roger T. Benitez to serve 78 months in federal prison followed by three years of supervised release for bribery, bringing in aliens for financial gain and conspiracy.
Rodriguez, who pleaded guilty on March 28, also forfeited a 2009 Jaguar, 12 luxury watches – including five Rolexes - jewelry, televisions, cash, and computers that were obtained as a result of his criminal activity.
Two of Hector Rodriguez’s accomplices were also sentenced today. Codefendant Gerardo Rodriguez was sentenced to 60 months in prison followed by three years of supervised release and he forfeited a 2005 Mercedes, 2006 Harley Davidson, $60,000, televisions, and computers that were obtained as a result of his criminal activity. Codefendant Maria Guerrero was sentenced to 30 months in federal prison followed by three years of supervised release and ordered to pay a $40,000 fine.
The case was investigated by the multi-agency Border Corruption Task Force.
According to court records, defendant Hector Rodriguez agreed that from around 2010 until his arrest on July 13, 2012, he received bribes from codefendants Gerardo Rodriguez and Maria Guerrero, in the form of cash money, use of luxury vehicles, and use of an apartment, in return for failing to enforce U.S. immigration laws by admitting illegal aliens into the U.S. through his inspection lane at the San Ysidro Port-of-Entry.
Defendant Hector Rodriguez provided his lane assignment information to codefendants who would then drive vehicles containing illegal aliens from Mexico to the United States through his assigned inspection lane. On their date of arrest, July 13, 2012, codefendant Gerardo Rodriguez drove a vehicle containing eight illegal aliens and codefendant Vanessa Moya drove a vehicle containing six illegal aliens through defendant Hector Rodriguez’s inspection lane. To conceal the smuggling, defendant Hector Rodriguez would enter into the government database false information about who was driving the vehicle and the number of occupants, thereby concealing the fact that the vehicles contained illegal aliens.
(Codefendant Vanessa Moya was previously sentenced on May 13, 2013 to five years of probation and ordered to pay a $2,500 fine.)
United States Attorney Laura E. Duffy stated, “The honesty and integrity of those who protect our borders are an integral part of the security equation. Corrupt officials who violate the public’s trust and jeopardize the security of our borders will not be tolerated and will be brought to justice.”
Pete Flores, director of CBP field operations for San Diego, said: “The sentencing of this former officer sends a message both to the community at large and to those in trusted positions in federal law enforcement who would contemplate participating in corrupt and unlawful behavior. We will not tolerate corruption within our workforce and we will actively ferret out and prosecute to the fullest extent of the law any employees who commit unethical or unlawful acts that violate that special trust.”
FBI Special Agent in Charge (SAC) Daphne Hearn commented, "Public corruption tears at the fabric of our communities and our national security. The FBI will continue to work with our partners in the Border Corruption Task Force (BCTF) to root out corruption along the Southwest Border and ensure those who violate the public's trust are held accountable." The public can report alleged instances of corruption to the FBI hotline at 1-800-NO BRIBE.
DEFENDANTS Case Number: 12cr2997-BEN/12cr4462-BEN Hector Rodriguez
Gerardo Rodriguez
Vanessa Moya
Maria Guerrero SUMMARY OF CHARGESTitle 8, United States Code, Section 371- Conspiracy to Bring In Aliens For Financial Gain and Bribery;
INVESTIGATING AGENCIES
Title 8, United States Code, Section 1324(a)(2)(B)(ii)- Bringing In Illegal Aliens For Financial Gain; and
Title 18, United States Code, Sections 201(b)(1), 201(b)(2) – Bribery.The Border Corruption Task Force is composed of the Federal Bureau of Investigation, Customs and
Border Protection - Internal Affairs, Customs and Border Protection - Field Operations, Border Patrol,
Transportation Security Administration, and Drug Enforcement Administration.Former Bryan Chiropractic Clinic Owner Convicted in $3 Million Auto Insurance Fraud ConspiracyRead the Press Release
HOUSTON – The former owner of Private Chiropractic Care in Bryan has entered a plea of guilty to engaging in a conspiracy to defraud various automobile insurance companies of more than $3 million, announced United States Attorney Kenneth Magidson.
Brittany Jessie, 24, admitted she participated in a three-year conspiracy to defraud numerous auto insurance companies by creating fraudulent chiropractic bills for chiropractic treatments which were never performed and used as support for fraudulent settlement demand letters sent to auto insurance companies.
During her plea, Jessie admitted that she, Marion Young, 52, and Chase Lindsey, 35, and others engaged in a conspiracy to defraud auto insurance companies. Jessie worked both at Sanjoh and Associates Law Firm in Bryan and as a tech at the chiropractic clinics run by Young, Lindsey and others. Lindsey is a chiropractor licensed to practice in the State of Texas.
Jessie sometimes cashed checks and took the cash to Lindsey for payment. Lindsey routinely prescribed medically unnecessary treatment which was provided, if at all, by unlicensed, untrained and unqualified individuals, including Jessie. Lindsey always prescribed the same six treatments but the patients usually received only two: ice/heat packs and electric stimulation. Lindsey prescribed the treatments be done 3-4 times per week for 5-6 weeks, but the patients usually went once a week for 3-4 weeks and many did not even go back for treatment after one or two visits.
Jessie was instructed on which treatments to mark down in order for the billing to be approved and to alternate treatments on the billing so it did not look suspicious. At one point, Jessie provided a set of treatment guidelines to an employee at Private Chiropractic Care to follow which were needed for the billing of patients. Jessie instructed that employee to mark down patient treatments, even if the treatments were not done, because it was necessary for billing. Jessie further instructed the employee to have the patients initial off next to the fraudulent treatments as if they received them.
Jessie also fraudulently marked down treatments and the patient's pain levels on treatment forms at the Sanjoh & Associates office when the patient had not received the treatment. She also prepared the false chiropractic billing statements at Sanjoh & Associates. Although most of the treatments billed were never performed, Jessie created false and fraudulent chiropractic bills under Lindsey’s name for each of the four clinics in the scheme - Texas Avenue Chiropractic Clinic, H & E Chiropractic, Private Chiropractic Care and Lindsey Chiropractic Care.
Despite changing the name and location of the chiropractic clinic four times, the fraud scheme remained the same. Jessie knew the fraudulent bills she created were used as support for settlement demand letters sent to auto insurance companies. The fraudulent demand letters caused the insurance companies to issue settlement checks and place those checks into the U.S. Mail to be delivered to Sanjoh and Associates.
Jessie acknowledged the scheme to defraud the automobile insurance companies resulted in the submission of more than $3 million in false billing claims. The insurance companies paid at least $940,000 in false claims during 2007-2009, during which time Jessie was paid at least $22,637.
U.S. District Judge Kenneth Hoyt, who accepted the guilty plea, has set sentencing for Dec. 2, 2013, at which time she faces a maximum penalty of 20 years imprisonment and a possible $250,000 fine. As part of her plea agreement, Jessie has also agreed to pay restitution of approximately $941,000 to the insurance companies victimized by the scheme. She was permitted to remain on bond pending her sentencing.
Lindsey and Young both previously pleaded guilty and are scheduled to be sentenced in early 2014. The remaining two defendants charged in the case are scheduled for trial on Sept. 24, 2013. They are presumed innocent unless and until convicted through due process of law.
The criminal charges are the result of a joint investigation by agents of the FBI and the National Insurance Crime Bureau. This case is being prosecuted by Assistant United States Attorney Al Balboni and Special Assistant United States Attorney Adrienne Frazior.
Former Bernalilo County Corrections Officer Sentenced to Prison for Obstructing JusticeRead the Press Release
The Justice Department announced today that Kevin Casaus, 24, a former corrections officer at the Bernalillo County Metropolitan Detention Center (MDC) in Albuquerque, N.M., was sentenced this morning to serve 15 months in federal prison followed by one year of supervised release for his conviction on obstruction of justice and falsification of records charges.
Casaus and fellow former MDC corrections officers, Demetrio Juan Gonzales, 41, and Matthew Pendley, 26, were indicted in June 2012, and charged with various crimes related to the Dec. 21, 2011 assault of an inmate housed at MDC, and subsequent attempts to cover up and impede the investigation of the assault.
On March 6, 2013, a federal jury convicted Casaus on obstruction of justice and falsification of records charges, and acquitted him on a related assault charge. According to the evidence at trial, during the early morning hours of Dec. 21, 2011, Gonzales was assigned to the Receiving-Discharge-Transfer (RDT) Unit at MDC where individuals are brought to be booked soon after they are arrested. His job was to photograph and fingerprint those who are brought to RDT for booking. The victim, who had been arrested for driving while intoxicated, was verbally uncooperative during the booking process, but was not a physical threat to anyone. Gonzales, who had previously pleaded guilty, testified that he became angry at the victim and walked him to the shower room where he knew there were no surveillance cameras. Several other corrections officers, including Casaus, followed Gonzales to the shower room. There, Gonzales physically assaulted the victim, striking him multiple times, and choking him. Gonzales testified that he beat the victim “in a blind rage” and then had to wash the victim’s blood off his hands. He further testified that the victim did not do anything to justify the beating.
According to the testimony, Casaus and two other corrections officers were present in the shower room during the beating. Additionally, a former inmate who was in the hallway outside the shower room at the time of the beating, overheard groans and sounds consistent with the assault coming from the shower room. The former inmate was then tasked with cleaning the blood that was on the floors and walls of the shower room. Casaus falsely stated during a recorded interview with a Bernalillo County Sheriff’s Office investigator that the victim was not assaulted in the shower room, the victim was not bleeding and that they only brought the victim to the shower room to ask him to change out of his clothes. Casaus falsified his report when he wrote that he saw blood on the victim's clothes, but did not know where the blood came from.
In October 2012, Gonzales pleaded guilty to violating the civil rights of an individual in his custody when he struck and choked the victim in the shower room/dress out area of MDC and subsequently was sentenced to 33 months in prison followed by three years of supervised release. Pendley pleaded guilty in February 2012 to obstructing justice by making false statements to law enforcement during their investigation of the assault on an inmate and was sentenced to a five year term of probation.
“Law enforcement officers who lie and obstruct justice to cover a fellow officer’s criminal acts do a disservice to the community that they swore to serve and protect,” said Acting Assistant Attorney General for Civil Rights Jocelyn Samuels. “As the prosecution of these three MDC corrections officers demonstrate, the Civil Rights Division, in conjunction with our partners at the U.S. Attorney’s Office and FBI, is committed to holding law enforcement officers accountable when they violate their sworn duty to uphold the Constitution.”
“A correction officer who actively covers up illegal violence perpetrated by another officer re-victimizes a victim, undermines the public’s confidence in the justice system and fosters a belief that correction officer violence perpetrated on inmates will be met with impunity rather than justice,” said Acting U.S. Attorney Steven C. Yarbrough of the District of New Mexico. “Such a culture cannot, and will not, be tolerated.”
“Correctional officers are given tremendous power to enforce the law. When that authority is abused, it's not just the civil rights of prison inmates that are threatened, but the public's trust in our democratic institutions as well,” said Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI. “The FBI, as the lead agency for investigating abuses of government officials, places a high priority on these cases. I would like to commend the FBI Special Agents who worked on this case, with the assistance of the U.S. Attorney's Office, the Justice Department's Civil Rights Division, the Bernalillo County Sheriff's Office and the Metropolitan Detention Center's executive management and internal affairs staff.”
This case was investigated by the Albuquerque Division of the FBI and was prosecuted by Assistant U.S. Attorney Mark T. Baker for the District of New Mexico and Trial Attorney Fara Gold of the Civil Rights Division.
Former Bernalilo County Corrections Officer Sentenced to Prison for Obstructing JusticeRead the Press Release
ALBUQUERQUE – The Justice Department announced today that Kevin Casaus, 24, a former corrections officer at the Bernalillo County Metropolitan Detention Center (MDC) in Albuquerque, N.M., was sentenced this morning to 15 months in federal prison followed by 1 year of supervised release for his conviction on obstruction of justice and falsification of records charges.
Casaus and fellow former MDC corrections officers, Demetrio Juan Gonzales, 41, and Matthew Pendley, 26, were indicted in June 2012, and charged with various crimes related to the Dec. 21, 2011 assault of an inmate housed at MDC, and subsequent attempts to cover up and impede the investigation of the assault.
On March 6, 2013, a federal jury convicted Casaus on obstruction of justice and falsification of records charges, and acquitted him on a related assault charge. According to the evidence at trial, during the early morning hours of Dec. 21, 2011, Gonzales was assigned to the Receiving-Discharge-Transfer (RDT) Unit at MDC where individuals are brought to be booked soon after they are arrested. His job was to photograph and fingerprint those who are brought to RDT for booking. The victim, who had been arrested for driving while intoxicated, was verbally uncooperative during the booking process, but was not a physical threat to anyone. Gonzales, who had previously pleaded guilty, testified that he became angry at the victim and walked him to the shower room where he knew there were no surveillance cameras. Several other corrections officers, including Casaus, followed Gonzales to the shower room. There, Gonzales physically assaulted the victim, striking him multiple times, and choking him. Gonzales testified that he beat the victim “in a blind rage” and then had to wash the victim’s blood off his hands. He further testified that the victim did not do anything to justify the beating.
According to the testimony, Casaus and two other corrections officers were present in the shower room during the beating. Additionally, a former inmate who was in the hallway outside the shower room at the time of the beating, overheard groans and sounds consistent with the assault coming from the shower room. The former inmate was then tasked with cleaning the blood that was on the floors and walls of the shower room. Casaus falsely stated during a recorded interview with a Bernalillo County Sheriff’s Office investigator that the victim was not assaulted in the shower room, the victim was not bleeding and that they only brought the victim to the shower room to ask him to change out of his clothes. Casaus falsified his report when he wrote that he saw blood on the victim's clothes, but did not know where the blood came from.
In Oct. 2012, Gonzales pleaded guilty to violating the civil rights of an individual in his custody when he struck and choked the victim in the shower room/dress out area of MDC and subsequently was sentenced to 33 months in prison followed by three years of supervised release. Pendley pleaded guilty in February 2012 to obstructing justice by making false statements to law enforcement during their investigation of the assault on an inmate and was sentenced to a five year term of probation.
“Law enforcement officers who lie and obstruct justice to cover a fellow officer’s criminal acts do a disservice to the community that they swore to serve and protect,” said Acting Assistant Attorney General for Civil Rights Jocelyn Samuels. “As the prosecution of these three MDC corrections officers demonstrate, the Civil Rights Division, in conjunction with our partners at the U.S. Attorney’s Office and FBI, is committed to holding law enforcement officers accountable when they violate their sworn duty to uphold the Constitution.”
“A correction officer who actively covers up illegal violence perpetrated by another officer re-victimizes a victim, undermines the public’s confidence in the justice system and fosters a belief that correction officer violence perpetrated on inmates will be met with impunity rather than justice,” said Acting U.S. Attorney Steven C. Yarbrough of the District of New Mexico. “Such a culture cannot, and will not, be tolerated.”
“Correctional officers are given tremendous power to enforce the law. When that authority is abused, it's not just the civil rights of prison inmates that are threatened, but the public's trust in our democratic institutions as well,” said Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI. “The FBI, as the lead agency for investigating abuses of government officials, places a high priority on these cases. I would like to commend the FBI Special Agents who worked on this case, with the assistance of the U.S. Attorney's Office, the Justice Department's Civil Rights Division, the Bernalillo County Sheriff's Office and the Metropolitan Detention Center's executive management and internal affairs staff.”
This case was investigated by the Albuquerque Division of the FBI and was prosecuted by Assistant U.S. Attorney Mark T. Baker for the District of New Mexico and Trial Attorney Fara Gold of the Civil Rights Division.
Fairbanks Man sentenced to 87 months in prison for drug trafficking conspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a man from Fairbanks, Alaska, was sentenced in federal court in Anchorage for his role in an Anchorage and Fairbanks drug conspiracy.
Joshua Mustovich, 31, from Fairbanks, Alaska, was sentenced on September 6, 2013, by U.S. District Court Chief Judge Ralph R. Beistline. Mustovich received a sentence of 87 months in prison and 5 years of supervised release. Mustovich had previously pled guilty to count one of an indictment charging him with drug conspiracy.
According to Assistant U.S. Attorney’s Frank Russo and Kelly Cavanaugh, who prosecuted the case, in January 2012, Mustovich provided a duffle bag with $250,000 in cash, that he had received from Donnell Johnson, to a co-conspirator in Fairbanks, Alaska. That co-conspirator then drove to Anchorage and met up with Johnson, who exchanged the bag with money for another duffle bag full of 12 kilograms of cocaine. Mustovich was set to receive the 12 kilograms of cocaine in Fairbanks, but it was intercepted by law enforcement before the cocaine arrived in Fairbanks. Law enforcement then contacted and arrested Mustovich at the area in Fairbanks where he was scheduled to pick up the delivery of cocaine.
Mustovich was a member of a drug trafficking conspiracy where some of his co-conspirators attempted to conceal their drug trafficking by claiming they were involved in a legitimate business, specifically that they were “artists,” employees, or promoters of an Anchorage recording label and rap and hip hop performance group known as “Out Da Cutt” or “ODC” Entertainment and “UNDB” (Up North ‘D’ or Dope Boys). Members of this conspiracy would record rap and hip hop songs, post videos on Youtube.com, and perform local shows in Anchorage and Fairbanks. Much of their music glorified the lifestyle of selling illegal narcotics and committing other crimes. The lavish and extravagant lifestyle portrayed in their music and videos was supported by their sales of illegal narcotics.
Prior to imposing the sentence, Judge Beistline informed the defendant that the sentence was designed to punish him for engaging in such a crime and to impart to him respect for the law.
Mustovich was a member of a wide ranging conspiracy along with 13 co-conspirators located in Anchorage and Fairbanks. Donnell Johnson, Antonio Fleming, Dalon Johnson, Tevoris Carter, Emma Shine, and Terrance Fleming have pled guilty for their roles in connection with the conspiracy and await sentencing.
Ms. Loeffler commended the Federal Bureau of Investigation, the Drug Enforcement Administration, the United States Postal Inspection Service, the Internal Revenue Service Criminal Investigation Division, and the Anchorage Police Department for the investigation leading to the successful prosecution of Mustovich.
Eli Lilly Warehouse Thief Admits Participating in Additional Multimillion Dollar BurglariesRead the Press Release
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 today 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.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]East Moriches Man Pleads Guilty to Child Pornography PossessionRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, Jay Lockett Sears, a resident of East Moriches, New York, pled guilty before United States District Judge Denis R. Hurley to possessing child pornography.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge of the Federal Bureau of Investigation, New York Field Office; and Edward Webber, Commissioner, Suffolk County Police Department (“SCPD”).
According to court pleadings, Sears created hundreds of images of child pornography by taking photographs of children in public settings, such as beach club parties and other events, and then placing the heads of the children onto images of adult bodies engaged in sexual activity. Some of the images included pictures of Sears’ face pasted onto the bodies of other males so as to appear as if he were having sexual relations with children.
Sears came to the attention of the SCPD Computer Crimes Squad on January 11, 2013, after hundreds of child pornography images were found in a dumpster outside of the defendant’s East Moriches townhouse apartment building. The images had been discarded as Sears prepared to move out of his apartment.
“Sears victimized children by using their innocent faces to create child pornography. He then dragged them further into his aberrant fantasy world by adding his own images to these pictures. Such exploitation of children is one of our most important law enforcement priorities and will not be tolerated,” stated United States Attorney Lynch.
At sentencing on January 17, 2014, Sears faces up to 10 years in prison.
Parents who believe that their children may have been the victims of persons involved in child pornography should contact the Suffolk County Computer Crimes Squad at (631) 852-6279, or the Federal Bureau of Investigation at (631) 501-8600.
The government’s case is being prosecuted by Assistant United States Attorney Allen Bode.
The Defendant
Name: JAY LOCKETT SEARS
Age: 74Eagle Butte Woman Charged with Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury.
Nicole Condon, a/k/a Nicole Garreau, age 35, was indicted on August 21, 2013, for Distribution of a Controlled Substance. Condon 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 20 years of imprisonment and/or a $1,000,000 fine, a mandatory period of at least 3 years of supervised release, an additional 2 years of supervised release upon revocation, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Condon is presumed innocent until and unless proven guilty.
The Indictment alleges that on October 23, 2012, Condon knowingly and intentionally possessed with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Condon was remanded to the custody of the U.S. Marshals Service. A trial date has been set for November 5, 2013.Dupo Man Sentenced for Operating A Drug HouseRead the Press Release
Jacob Nelson, 32, of Dupo, was sentenced to 78 months in federal prison on September 9, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
A jury convicted Nelson of three federal charges on April 11, 2013, following a four day jury trial. The jury found Nelson guilty of Maintaining Drug Involved Premises at his home in the one hundred block of North Third Street in Dupo, IL. The jury also found Nelson guilty of unlawfully possessing two firearms. Nelson was acquitted on a fourth charge of distributing heroin with death resulting.
At his jury trial in April, Nelson’s neighbors testified that he had sold heroin, cocaine and marijuana “24/7” (every day and all night) between July 2010 and July 2011.
Nelson has been confined since his arrest in February, 2012. When Nelson is released from prison, he will be required to complete a term of three years of supervised release. Nelson was also ordered to pay a fine of $1,500, and to pay special assessments of $300.
The investigation which resulted in Nelson’s arrest, conviction and sentence was conducted by the Columbia, IL Police Department and the Drug Enforcement Administration.
The case is assigned to Assistant United States Attorney Robert L. Garrison.
District Man Sentenced to 3 ½-Year Prison TermRead the Press Release
For Possession of Child PornographyWASHINGTON – Keith Dietterle, 28, of Washington, D.C., was sentenced today to a 42-month prison term for possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Dietterle, a former intelligence analyst at the FBI, pled guilty to the charge in April 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Amy Berman Jackson. Upon completion of his prison term, Dietterle will be placed on 10 years of supervised release.
According to the government's evidence, on Nov. 7, 2012, Dietterle contacted a man he believed to be the father of an under-aged girl on a social network site. That man turned out to be an undercover officer with the FBI's Child Exploitation Task Force. Over the next several days, Dietterle engaged in online e-mail and instant message conversations with the undercover officer.
During this period of time, Dietterle sent the undercover officer three images of child pornography which depicted, among other things, adult men engaged in sexual acts with children. In addition, Dietterle sent the undercover officer various links to videos depicting graphic child pornography. Dietterle was arrested on Nov. 29, 2012.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorneys Julieanne Himelstein and Ari Redbord, who prosecuted the case.
13-309District Man Sentenced to 3 ½-Year Prison TermRead the Press Release
For Possession of Child PornographyWASHINGTON – Keith Dietterle, 28, of Washington, D.C., was sentenced today to a 42-month prison term for possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Dietterle, a former intelligence analyst at the FBI, pled guilty to the charge in April 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Amy Berman Jackson. Upon completion of his prison term, Dietterle will be placed on 10 years of supervised release.
According to the government's evidence, on Nov. 7, 2012, Dietterle contacted a man he believed to be the father of an under-aged girl on a social network site. That man turned out to be an undercover officer with the FBI's Child Exploitation Task Force. Over the next several days, Dietterle engaged in online e-mail and instant message conversations with the undercover officer.
During this period of time, Dietterle sent the undercover officer three images of child pornography which depicted, among other things, adult men engaged in sexual acts with children. In addition, Dietterle sent the undercover officer various links to videos depicting graphic child pornography. Dietterle was arrested on Nov. 29, 2012.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorneys Julieanne Himelstein and Ari Redbord, who prosecuted the case.
13-309Debt Collection Agency Executive Who Bribed Bank Official Is SentencedRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that PATRICK PINTO, 45, of Bohemia, N.Y., was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to two years of probation, the first six months of which PINTO must spend in home confinement, for bribing an executive of U.S. Bank. PINTO also was ordered to pay a $10,000 fine and perform 100 hours of community service.
According to court documents and statements made in court, Oxford Collection Agency (“Oxford”) was a private financial services company that engaged in accounts receivables management, primarily debt collecting, with offices in New York, Pennsylvania and Florida. Between 2007 and 2011, Oxford executives engaged in a multi-year scheme to defraud its lender, Connecticut-based Webster Bank, as well as its investors, clients and the commercial debtors that Oxford collected from. Oxford’s victims lost more than $12 million as a result of this scheme.
The investigation also revealed that Oxford sometimes obtained and retained business with its banking clients by paying bribes and kickbacks to bank officials. As part of the scheme, PINTO, a Vice President of Oxford, and other Oxford executives made monthly payments of between $2,500 and $3,500, which were hidden in cigar boxes, to an Assistant Vice President of U.S. Bank in Ohio. The bank official received at least $24,000 in bribes from Oxford.
U.S. Bank and Webster Bank received funds through the U.S. Department of the Treasury Troubled Asset Relief Program (TARP).
PINTO was arrested on December 7, 2012. On June 17, 2013, he waived his right to indictment and pleaded guilty to one count of conspiring to commit bank bribery.
In May 2012, Richard Pinto, Oxford Collection Agency’s Chairman of the Board, and his son, Peter Pinto, Oxford’s President and Chief Executive Officer, each pleaded guilty to one count of conspiracy to commit wire fraud, bank fraud, and money laundering and one count of wire fraud stemming from this scheme. In December 2012, Oxford Vice-President of Finance and Chief Financial Officer Randall Silver, Executive Vice President Charles Harris, and Chief Operations Officer Carlos Novelli, also pleaded guilty to various charges.
On January 30, 2013, Richard Pinto, who is now deceased, was sentenced to 60 months of imprisonment. The other defendants await sentencing.
PATRICK PINTO is the son of the late Richard Pinto.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and the Connecticut Securities, Commodities, and Investor Fraud Task Force. The case is being prosecuted by Assistant U.S. Attorney Liam Brennan and Special U.S. Attorney John McReynolds.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Dallas Residents, Affiliated with Bridgemark Investment Group, SentencedRead the Press Release
Mortgage Fraud Conspiracy Resulted in More Than $10 Million in Fraudulently Obtained Loan Proceeds
DALLAS — Eric Damon Johnson, 51, and Tracie Elaine Stenson, 50, both of Dallas, were sentenced this morning by U.S. District Judge David C. Godbey to 48 months and 57 months, respectively, following their guilty pleas earlier this year to their roles in a mortgage fraud conspiracy. In addition, Judge Godbey ordered that they pay, jointly and severally, $3,753,539 in restitution. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Johnson pleaded guilty to a superseding information charging one count of conspiracy to commit wire fraud affecting a financial institution. Johnson was a licensed loan officer and mortgage broker and the president of Bridgemark Investment Group (BIG), which had offices on Hampton Road in Desoto, Texas. BIG’s motto was “Bridging the Gap between the Poor and the Wealthy.”
Stenson pleaded guilty to one count of conspiracy to commit wire fraud, as charged in the indictment returned by a federal grand jury in Dallas in October 2011. As the Chief of Operations at BIG, Stenson worked as a loan officer and processor.
According to documents filed in the case, Johnson and Stenson conspired to fraudulently obtain mortgage loans in excess of the true sales price of residential real estate properties by making false statements on loan applications and submitting fake invoices for construction upgrades or repairs that were never performed. The conspiracy resulted in more than $10 million in fraudulently-obtained loan proceeds.
BIG recruited individuals to purchase residential real estate as “investors” and Johnson and Stenson promised investors that BIG would find tenants to rent the property and make the mortgage payments. Johnson and Stenson agreed to make payments to the “investors” when the loan closed that were not disclosed to the mortgage lender on the HUD-1 Settlement Statement. Stenson prepared false loan applications for the investors that included, among other things, material misrepresentations regarding the borrower’s monthly income, intention to occupy the property, assets and liabilities. The loan applications were submitted to residential mortgage lenders, who on the basis of the false statements in the loan applications, agreed to fund primary and secondary mortgages for residential real estate properties.
This case was prosecuted in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
The investigation was conducted by the FBI and Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys J. Nicholas Bunch and P.J. Meitl prosecuted.
Computer Technology Firm CEO to Plead Guilty to Bank Fraud, Money LaunderingRead the Press Release
PROVIDENCE, R.I. – Sojin Lim, 60, of East Greenwich, R.I., Chief Executive Officer and Vice President of General Technologies Corporation, d/b/a CompUtopia, has agreed to plead guilty to one count each of bank fraud and money laundering in connection with an alleged scheme to defraud Rockland Trust Company of more than $5 million dollars, announced by United States Attorney Peter F. Neronha; John G. Collins, Acting Special Agent in Charge of the Boston office of the Internal Revenue Service Criminal Investigation; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
It is alleged in court documents that Lim devised a scheme to defraud Rockland Trust Company in order to satisfy a demand for repayment of a $5 million dollar line of credit with Citizens Bank. It is alleged that Lim falsified bank documents and overstated company revenues in order to secure the funding from Rockland Trust to finance repayment of the line of credit.
According to court documents, in the spring of 2011 Lim and CompUtopia were informed that the line of credit would no longer be carried by Citizens Bank and that CompUtopia was required to seek funding elsewhere. It is alleged that Lim devised a scheme to obtain the funding from Rockland Trust Company by providing false, fraudulent and fictitious information and documentation.
Court documents allege that Lim falsely stated CompUtopia’s accounts receivables as $7,066,268.04, when in fact CompUtopia’s accounts receivables were substantially less. In June 2011, based on the information and documents provided to Rockland Trust Company, the bank deposited $4,878,378.85 in an account which benefited CompUtopia. In April 2012, the Rockland Trust Company loan was increased to $5,350,000.
According to court documents, in late June 2011 Lim paid Citizens Bank $5,342,997.72 from funds provided by Rockland Trust and from a $464,610.37 loan taken against the defendant’s personal assets. CompUtopia filed for receivership in June 2012.
An informationis merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The maximum statutory penalty for bank fraud is 30 years in federal prison; a fine of $250,000; and 5 years of supervised release. The maximum statutory penalty for money laundering is 10 years in federal prison; a fine of $250,000; and 3 years supervised release.
The case is being prosecuted by Assistant U.S. Attorneys John P. McAdams and Sandra R. Hebert.
The matter was investigated by Internal Revenue Service Criminal Investigation, the FBI and Rhode Island State Police.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. The President established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Columbus County Man Sentenced for Drug and Gun ChargesRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that Friday in federal court, Judge Louise W. Flanagan sentenced Jason Antwan Williams , 26, of Columbus County to 58 months of months imprisonment, followed by 3 years of supervised release.
Williams was named in an Indictment filed on October 17, 2012, charging him with possession with the intent to distribute marijuana and cocaine; felon in possession of a firearm; and possession of a firearm with an obliterated serial number. On March 12, 2013, WILLIAMS pled guilty to those charges.
According to the investigation, WILLIAMS was the driver of a truck stopped by the Cary Police Department on April 5, 2012 after the truck left the area of an undercover drug bust. WILLIAMS was found to be in possession of marijuana, cocaine and a handgun with an obliterated serial number. WILLIAMS previously had been convicted of a felony.Investigation of this case was conducted by the Cary Police Department and the Federal Bureau of Investigation’s Raleigh-Durham Safe Streets Task Force comprised of the Cary Police Department, Durham County Sheriff’s Office, Durham Police Department, Garner Police Department, North Carolina Alcohol Law Enforcement, North Carolina State Highway Patrol and the Raleigh Police Department. Assistant United States Attorney S. Katherine Burnette represented the government.
Castro District Resident Sentenced for Methamphetamine DistributionRead the Press Release
SAN FRANCISCO – Jonathan Gildart was sentenced on September 4, 2013, to 87 months in prison for distributing methamphetamine in San Francisco’s Castro District, United States Attorney Melinda Haag announced.
Gildart pleaded guilty on May 22, 2013, to distribution and possession with intent to distribute methamphetamine. According to the plea agreement, Gildart admitted that on February 15, 2013, at a shipping business on Castro Street in San Francisco, he sold methamphetamine to an individual in exchange for $3,000. On that same date, at his apartment in the Castro District, Gildart possessed additional methamphetamine with the intent to distribute it to others. Both the shipping business and Gildart’s apartment were within 1,000 feet of two schools.
Gildart, age 31, was charged by Information on May 14, 2013, in anticipation of his guilty plea. The defendant has been in continuous federal custody since April 15, 2013.
“Methamphetamine has become a large problem in our communities, and has had a significant impact in various San Francisco neighborhoods. Our office is committed to seeking serious consequences for those dealing methamphetamine in our neighborhoods, particularly where methamphetamine is sold near schools,” said Ms. Haag.
The sentence was handed down by The Honorable Maxine M. Chesney, U.S. District Judge, following a guilty plea to one count of violation of distribution and possession with intent to distribute methamphetamine, 21 U.S.C. § 841(a)(1) and (b)(1)(B)(viii). Judge Chesney also sentenced the defendant to a four-year period of supervised release.
The prosecution is the result of an operation by the San Francisco Police Department and investigation by the Drug Enforcement Administration.
(Gildart Information )
Bastrop Resident Pleads Guilty to Attempting to Receive Child PornographyRead the Press Release
LAFAYETTE, La. – U.S. Attorney Stephanie A. Finley announced that Christopher Wallace, 25, of Bastrop, La., pleaded guilty Thursday before U.S. Magistrate Judge C. Michael Hill to attempting to receive child pornography.
According to evidence presented at the guilty plea, on January 31, 2011 Wallace began chatting online with who he thought was a 14-year-old girl. He asked the girl to perform sexual acts, and Wallace performed sex acts himself on a web camera. Wallace also asked the girl, who was actually a police officer, to perform sex acts on a web camera.
Wallace faces up to 20 years in prison, a $250,000 fine, and five years of supervised release. A sentencing date of January 10, 2014 was set. Homeland Security Investigations and the Lafayette Police Department conducted the investigation. Assistant U.S. Attorney John Luke Walker is prosecuting the case.This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be reported anonymously.
Attorney General Holder Meets with Mexican Attorney General <br /> About Mexico's Release of DEA Agent's KillerRead the Press Release
Attorney General Eric Holder met with Mexican Attorney General Jesús Murillo Karam today to discuss the release by the Mexican government of Rafael Caro Quintero, who was convicted of murdering Drug Enforcement Administration (DEA) Agent Enrique "Kiki" Camarena in February 1985.
Caro Quintero was convicted and sentenced in Mexico for charges related to the 1985 kidnapping, torture and murder of DEA Camarena. He was sentenced to serve 40 years in a Mexican prison in December 1989 but, after serving only 28 years of his sentence, a Mexican court ruled that he had been improperly tried in a Mexican federal court rather than a state court and ordered his release on August 9, 2013. Mexican authorities are seeking reversal of that decision. Nonetheless, Caro Quintero remains at large.
Attorney General Holder expressed grave concerns and disappointment immediately after learning of Caro Quintero’s premature release. At today’s meeting with Mexican Attorney General Murillo, Attorney General Holder reiterated those concerns.“I appreciated the chance to discuss the recent developments in the case connected to the murder of DEA special agent Kiki Camarena and other important matters with Attorney General Murillo this afternoon. I look forward to working with him to continue to advance our shared commitment to the rule of law. Nothing will weaken our resolve to hold accountable those who commit acts of violence against our brave law enforcement agents,” said Attorney General Holder. “The kidnapping and murder of Agent Camarena was a heinous crime that shocked criminal justice professionals on both sides of the border. Like many, I was surprised and deeply concerned to learn about the release of Rafael Caro Quintero last month. We will continue to work with our Mexican counterparts to ensure that Caro Quintero does not escape justice.”
In May 1987, the Department of Justice, through the United States Attorney’s Office in the Central District of California, indicted Caro Quintero and several others, for conspiracy and racketeering charges related to the kidnapping, torture and murder in Mexico of Agent Camarena. Since then, the Department of Justice has continued to make clear to Mexican authorities the continued interest of the United States in ensuring that Caro Quintero faces justice.
Aryan Brotherhood of Texas Gang Member Pleads Guilty to Federal Racketeering ChargesRead the Press Release
A member of the Aryan Brotherhood of Texas (ABT) gang pleaded guilty today to racketeering charges related to his membership in the ABT’s criminal enterprise, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Benjamin Troy Johnson, aka “South,” 42, of Corpus Christi, Texas, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Johnson and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Johnson and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Johnson has admitted to being a member of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and the promotion of white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to commit murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect while his conduct is observed by the members of the ABT.
Judge Lake has set sentencing for Jan. 30, 2013, at which time Johnson faces a maximum penalty of life in prison.Johnson is one of 36 defendants charged with, among other things, conducting racketeering activity through the ABT criminal enterprise. He is the 13th defendant charged in the indictment to plead guilty.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement -Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Tarrant County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Southern District of Texas.
Aryan Brotherhood of Texas Gang Member Pleads Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON - A member of the Aryan Brotherhood of Texas (ABT) gang pleaded guilty today to racketeering charges related to his membership in the ABT’s criminal enterprise, announced United States Attorney Kenneth Magidson Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Benjamin Troy Johnson, aka “South,” 42, of Corpus Christi, has pleaded guilty before U.S. District Judge Sim Lake to one count of conspiracy to participate in racketeering activity.
According to court documents, Johnson and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Johnson and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Johnson has admitted to being a member of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and the promotion of white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect while his conduct is observed by the members of the ABT.
Judge Lake has set sentencing for Jan. 30, 2014, at which time Johnson faces a maximum penalty of life in prison.Johnson is one of 36 defendants charged with, among other things, conducting racketeering activity through the ABT criminal enterprise. He is the 13th defendant charged in the indictment to plead guilty.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; sheriff’s offices in Harris, Tarrant, Atascosa, Orange and Waller Counties; police departments in Alvin, Carrollton and Mesquite Texas; as well as the Montgomery and Atascosa County District Attorney’s Offices.
The case is being prosecuted by the U.S. Attorney’s Office of the Southern District of Texas and the Criminal Division’s Organized Crime and Gang Section.
Albuquerque Man Pleads Guilty to Federal Wire Fraud and Money Laundering ChargesRead the Press Release
ALBUQUERQUE – Rodney Chavez, 47, of Albuquerque, N.M., pleaded guilty this morning to wire fraud and conspiracy to commit money laundering charges under a plea agreement that requires him to serve a 63 month prison sentence and pay full restitution, estimated at $590,250.00, to the victims of his criminal conduct. The guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough and Dawn Mertz, Special Agent in Charge of the Phoenix Division of IRS Criminal Investigation.
Chavez and his co-defendants, Wayne Brian Church, Jr., 27, and Joshua G. Ellis, 43, both of Albuquerque, were charged in Jan. 2012, with wire fraud and money laundering charges in a 22-count indictment that generally alleged that the three men defrauded investors in a real estate venture of more than $800,000. Chavez and Church were arrested based on the charges in the indictment in Feb. 2012. Ellis has yet to be arrested and is considered a fugitive.
After Church pleaded guilty in Aug. 2012 to a felony information charging him with conspiracy to commit wire fraud, Chavez and Ellis were charged in a 21-count superseding indictment that was filed in Oct. 2012. The superseding indictment charged Chavez and Ellis with conspiracy to commit wire fraud and five substantive wire fraud offenses. It also charged Chavez with conspiracy to launder the proceeds generated by their fraudulent activities and 14 substantive money laundering offenses, and sought forfeiture of the proceeds of the defendants’ unlawful activities.
During today’s plea hearing, Chavez pleaded guilty to Counts 6 and 7 of the superseding indictment, charging him with wire fraud and conspiracy to commit money laundering, respectively. In his plea agreement, Chavez admitted that, between March 2010 and April 2011, he designed and executed a scheme to defraud a group of investors of their interest in certain properties located in Puerto Peñasco, Mexico. Chavez embarked on the scheme after learning that the investors were interested in selling the properties at a substantial loss after realizing that they would not be able to recoup the full amount of their original investments. In March 2010, Chavez contacted a representative of the investor group under an assumed identity and entered into an agreement to sell the properties on behalf of the investors with the understanding that the investors would receive a return of 30% of their original investments. Despite his stated intention to sell the properties and distribute the agreed amount to the investors, Chavez admitted that he never intended to honor that agreement and instead intended to defraud the investors by selling the properties and retaining the proceeds for himself.
According to the plea agreement, while falsely assuring investors of his efforts to sell the properties on their behalf, Chavez hired a real estate agent to sell the properties and sold five properties, the sales of which generated approximately $847,370.52 in proceeds. After the proceeds were wire-transferred to a bank in Albuquerque with assistance from Church, Chavez did not distribute the proceeds to the investors. Instead, Chavez and Church kept the proceeds and conspired to conceal the source of the proceeds by transferring the money to bank accounts held in the names of businesses they exclusively controlled. None of the proceeds from the sale of properties were returned to the investors.
“Rodney Chavez took advantage of investors who already had lost the value of their investments by falsely promising to help them recoup part of their losses and instead using their proceeds to line his own pockets. Ultimately, the truth caught up to Rodney Chavez and he will spend more than five years in prison for his fraudulent conduct,” said Acting U.S. Attorney Steven C. Yarbrough. “Protecting investors from fraudulent schemes like the one perpetuated by Chavez and his cohorts is a priority for my Office, and those who commit these crimes will be aggressively tracked down and prosecuted.”
“Mr. Chavez preyed on his victims through a pattern of lies and deceit. He created an elaborate scheme that he used to steal. By pleading guilty today and accepting responsibility, Mr. Chavez has taken a positive first step in making amends for the harm he has caused the victims in this case,” stated IRS Criminal Investigation Special Agent in Charge Dawn Mertz.
Chavez will remain in custody pending his sentencing hearing, which has yet to be scheduled. Church remains on conditions of release pending his sentencing hearing when he faces a maximum penalty of 30 years in prison. The charges in the superseding indictment against Ellis are merely accusations and he is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney John C. Anderson.
Sunday 8 September 2013
Smith County Man Pleads GuiltyTo Possessing, Distributing Child PornographyRead the Press Release
WICHITA, KAN. - A Smith County, Kan., man pleaded guilty Monday to possessing and sending child pornography, U.S. Attorney Barry Grissom said. The man’s plea came after an unsuccessful effort to suppress evidence gathered by Internet service provider AOL.
Walter E. Ackerman, 56, Lebanon, Kan., pleaded guilty to one count of distributing child pornography and one count of possessing child pornography. In his plea, he admitted using AOL email to send child pornography to another user. The child pornography was detected by AOL using an automated image detection and filtering process that scans for malware, viruses and illegal images such as child pornography. AOL sent the information to the National Center for Missing and Exploited Children (NCMEC), which in turn notified the Kansas Internet Crimes Against Children (ICAC) Task Force in the Wichita/Sedgwick County Exploited and Missing Children’s Unit (EMCU).
Ackerman’s attorney moved to suppress the email evidence on the grounds that the evidence was obtained through an illegal search and seizure with AOL and NECMEC acting as government investigators without a search warrant. U.S. District Judge Eric Melgren ruled that neither AOL nor NCMEC are state actors and the Fourth Amendment against unreasonable search and seizure does not apply to them.
Sentencing is set for Nov. 24. He faces a penalty of not less than five years and not more than 20 years and a fine up to $250,000 on the distribution count and a maximum penalty of 10 years on the other count.
Grissom commended Immigration and Customs Enforcement, the Kansas Internet Crimes Against Children Task Force, the Wichita/Sedgwick County Exploited and Missing Children’s Unit and Assistant U.S. Attorney Jason Hart for their work on the case.
Saturday 7 September 2013
Montgomery Man Pleads Guilty to Cashing Fraudlent Tax Refund ChecksRead the Press Release
Montgomery, Alabama - David Lee Haigler, of Montgomery, Ala., pleaded guilty in U.S. District Court for the Middle District of Alabama yesterday to one count of theft of public funds and to one count of passing U.S. Treasury checks with forged endorsements, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama.
According to court documents, between November 2011 and July 2012, Haigler obtained 263 fraudulent U.S. Treasury refund checks and refund anticipation loan checks totaling $606,781.34. The refund checks were in the names of different individuals who had not authorized Haigler to cash them. Haigler cashed the refund checks at a store in Millbrook, Ala., by providing the store with copies of fictitious powers of attorney in the names of the individuals on the checks.
For his involvement in the scheme, Haigler faces a maximum potential sentence of 20 years in jail and a fine of up to $500,000.
Trial Attorneys Jason Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case. Special Agents of IRS - Criminal Investigation and the U.S. Secret Service conducted the investigation.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617
Friday 6 September 2013
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Scott Weaver, 29, of South Bend, Indiana pled guilty before District Judge Christopher A. Nuechterlein to the felony offense of knowingly distributing a mixture or substance containing methamphetamine. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 12/5/2013.This case resulted from an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Juan Gallardo, 30, of LaPorte, Indiana was sentenced by District Judge Jon E. DeGuilio to 37 months imprisonment with 4 years of supervised release after pleading guilty to the felony offense of knowingly and intentionally conspiring to deliver a mixture or substance that contained cocaine.According to documents filed in this case, between February 2012 and December 2012, Gallardo and several others were involved in distributing cocaine in LaPorte County. This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS:
Allen Ray Evens, 25, of Gary, Indiana, was sentenced by Chief Judge Philip Simon to 27 months imprisonment and 1 year of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed in this case, Evens had a previous conviction for robbery and wason probation at the time of his arrest. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force and the Gary Police Department.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Michael Weatherford, 70, of Attica, Indiana, was sentenced by Senior District Judge James Moody to 108 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a stolen firearm. According to documents filed by the government in this case, Weatherford has six prior felony convictions including burglary, breaking and entering, distribution of a controlled substance and possession of a firearm by a convicted felon.Weatherford was arrested and charged after a confrontation with a conservation officer in a wooded area near Attica, Indiana. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Brandon Earl, 31, of Demotte, Indiana, a defendant in the case US v Humphrey et al., was sentenced by Senior District Judge Rudy Lozano to 41 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of conspiracy to possess with the intent to distribute heroin.According to documents filed in this case, Earl was charged along with eight others with participation in a heroin ring operating in the Newton County area. This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorneys Jacqueline Jacobs and Jennifer Chang-Adiga.
U.S. Department of Justice Awards $6 Million to State of Nevada to Assist Crime VictimsRead the Press Release
LAS VEGAS, Nev. – Daniel G. Bogden, United States Attorney for Nevada, is pleased to announce that today the U.S. Department of Justice awarded $6 million from the 2013 Crime Victims Fund to the State of Nevada for victim compensation and assistance programs. Victim assistance funds in the amount of $3,954,131, and victim compensation funds in the amount of $2,054,000, have been awarded to the State of Nevada Departments of Health and Human Services and Administration to provide support and services to thousands of victims throughout the state.
Since the Crime Victims Fund was established in 1986, crime victims across Nevada have received services and economic assistance totaling over $80 million , said U.S. Attorney Bogden. “The United States Attorney’s Office is pleased to support both the collection efforts for the Crime Victims Fund, which provides these program dollars, and the allocation of these resources to help Nevada’s crime victims.”
Crime victim assistance funds are competitively awarded by the State to local community-based organizations that provide direct services to crime victims. Funding is provided to domestic violence shelters, rape crisis centers, child abuse victims programs and other initiatives that provide counseling, advocacy or emergency transportation to victims. Nevada can also use these funds for sexual assault programs or victim service units in law enforcement agencies, prosecutors offices and social service agencies.
Nevada’s compensation program receives annual grants equal to 60 percent of its total payout to crime victims in a previous year. Compensation programs work similarly to private insurance, providing reimbursement to, or on behalf of, crime victims for expenses such as medical costs, mental health counseling, funeral and burial costs, and lost wages, as a result of being a crime victim.
The Crime Victims Fund is supported primarily by fines paid by federal criminal offenders – not taxpayers. These fines are collected by United States Attorney’s Offices, the United States Courts, and the Federal Bureau of Prisons. Fines collected in one year are deposited into the Fund and are available for grant awards the following year. The USA Patriot Act of 2001 also allowed private gifts, donations and bequests to the Crime Victims Fund. Over 90 percent of Fund deposits are distributed annually by the Department of Justice to states and territories to support state victim compensation and victim assistance programs. Remaining funds are used for training and technical assistance, national demonstration projects and to improve handling of child abuse cases in Indian communities. In addition, these funds support victim witness coordinator and advocate positions for U.S. Attorney Offices, victim specialist positions in the FBI and a federal victim notification system. More information on Nevada’s victim compensation and victim assistance efforts is available from the State of Nevada Department of Administration Victims of Crimes Program at (702) 486-2740 in southern Nevada or (775) 688-2900 in northern Nevada, or the State of Nevada Department of Health and Human Services, Division of Child and Family Services, at (775) 684-4400. Questions may also be directed to OJP’s Office of Communications at (202) 307-0703.Two Men Found on Stateless Vessel in International Waters with Large Amount of CocaineRead the Press Release
BOSTON – Two men were arrested for transporting cocaine on a sailboat bound for Montreal.
Hicham Ramzi Nahra, 27, of Canada, and Benjamin Celma-Sedo, 49, of Spain, were charged today in a criminal complaint with possession of cocaine with intent to distribute on board a vessel subject to the jurisdiction of the United States.
The complaint alleges that by the United States Coast Guard found Nahra and Celm-Sedo on board a sailboat, named the Callisto, in international waters with 621 kilograms of cocaine. The cocaine has an approximate street value of more than $20 million.
On Sept. 2, the crew of the Coast Guard Cutter Dependable interdicted the 49-foot sailing vessel Elegance, in international waters about 400 nautical miles east of the United States. The Elegance was flying a Canadian flag, but was determined to be a stateless vessel, and according to Canadian law enforcement authorities, was never registered as a Canadian vessel. It was also determined that the Elegance was in fact the Callisto, a sailing vessel whose last port of call was in Venezuela. After receiving permission from the Canadian government to board and search the Callisto, U.S. Coast Guard crew members found 23 large, heavy plastic mesh bags each containing 25-27 kilogram brick shaped packages containing cocaine.
If convicted, Nahra and Celma face a maximum term of 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a $1 million fine.
United States Attorney Carmen M. Ortiz; Rear Admiral Dan Abel, Commander in Charge of the First Coast Guard District; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston made the announcement today. This case is being prosecuted by Assistant U.S. Attorney Neil Gallagher of Ortiz’s Drug Task Force.
Two Individuals Indicted and Arrested for ExtortionRead the Press Release
SAN JUAN, Puerto Rico – U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez announced the indictment and arrest of 2 defendants charged with Attempted Hobbs Act extortion, Travel Act, and Conspiracy. Defendants Jesús Damiàn Martínez-Silva and Jonathan Montes-Martínez, aiding and abetting one another, attempted to obstruct, delay, and affect commerce and the movement of articles and commodities in commerce by extortion. The defendants attempted to obtain the purported property of RV, a female victim, in the form of $1,000.00 with RV’s consent induced by the wrongful use of force, violence, and fear.
On August 28, 2013, the defendants participated in a scheme in which the ring would call the victim, describe her 78-yr old mother’s home, and threaten to kill her unless she paid them money. The victim paid $1,000 and then was called the next day, August 29, and was extorted for more money. The victim called the FBI and the FBI did a sting and the defendants were arrested after Jesús Damiàn Martínez-Silva and another individual collected $1,000 in government funds from the victim.
Assistant U.S. Attorney Luke Cass is in charge of the prosecution of the case. If convicted the defendants face up to thirty years imprisonment. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Two Illegal Aliens Sentenced in Scheme to Create and Sell Fraudulent Identification DocumentsRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Henry Ramos- Agustin, age 37, a Guatemalan citizen illegally residing in Cambridge, Maryland, today to 42 months in prison followed by one year of supervised release for conspiring to sell fraudulent identification documents and aggravated identity theft. Judge Bennett sentenced Antonio Abraham Cruz-Cruz, age 28, a Mexican citizen illegally residing in Adelphi, Maryland, yesterday to four years in prison followed by one year of supervised release for the same offenses. Judge Bennett further imposed a special condition that both defendants, upon completion of their sentences, be surrendered to immigration authorities for deportation proceedings.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
“Document fraud poses a threat to national security and puts the security of our communities at risk because it creates a vulnerability that may enable terrorists, criminals and illegal aliens to gain entry to and remain in the United States,” said HSI Baltimore Special Agent in Charge William Winter. “This investigation resulted in the arrest and indictment of a document mill leader and co-conspirator operating out of Maryland. Homeland Security Investigations will move aggressively to investigate and bring to justice those who potentially compromise the integrity of America's legal immigration system.”
According to their pleas and a stipulation at Cruz-Cruz’s sentencing hearing, from October 2011 through March, 2013, Cruz-Cruz manufactured at least 2,000 permanent resident cards, social security cards and driver’s licenses, which he offered for sale, or had Ramos-Agustin and others sell, to individuals illegally present in the United States. These documents were offered for sale through word of mouth and the distribution of business cards which appeared to be offering other services, such as painting or automobile repairs, but were actually used for obtaining customers for the scheme. Orders were generally received by email or text message which included a picture and the biographical information the customer wanted on the cards. Salesmen such as Ramos-Agustin provided the photographs and personal information to Cruz-Cruz, who manufactured the requested fake documents. The completed documents were returned to Ramos-Agustin or other document vendors who then delivered them to the customer and obtained payment.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and HSI Resident Agent in Charge Ocean City for their work in the investigation and thanked the Anne Arundel County Police Department and Baltimore County Police Department for their assistance in the case. Mr. Rosenstein thanked Assistant United States Attorney Tamera L. Fine, who prosecuted the case.
Two Convicted and Sentenced in International Marijuana Smuggling OperationRead the Press Release
ALEXANDRIA, Va. – Ricardo Avelar Valdez, 47, of Gainesville, Va. was sentenced today to 87 months in prison, followed by a term of three years of supervised release, for his role in a marijuana smuggling operation based in Northern Virginia. The operation attempted to smuggle several multi-thousand pound loads of marijuana from Mexico to Prince William County, Va. The defendant has also agreed to forfeit $2 million representing the proceeds of his drug trafficking activities as well as two vehicles and drug paraphernalia.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and Scot R. Rittenberg, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C. Field Office, made the announcement after sentencing by United States District Judge Anthony J. Trenga.
Valdez pleaded guilty on May 9, 2013. According to court documents, between December 2011 and September 2012, HSI special agents and U.S. Customs and Border Protection officers made three significant marijuana seizures at ports of entry in Texas. Each of these shipments was tied to this operation. The marijuana, which was concealed in frozen fruit pulp and furniture parts, was, in each case, being shipped within hidden compartments in commercial tractor trailers to business addresses located in Prince William County. During this investigation, law enforcement in Texas seized approximately 10,000 pounds of marijuana, all of which was being shipped by Valdez and his co-defendants to the Eastern District of Virginia.
On August 16, 2013, Valdez’s co-defendant, Francisco Cirilio Vargas-Aquino, aka “Francisco C. Vargas,” and “Miguel,” 49, of Manassas, Va. was sentenced by United States District Judge Anthony J. Trenga to 87 months in prison, followed by four years of supervised release for his role in this drug trafficking operation.
This ongoing Organized Crime and Drug Enforcement Task Force investigation, dubbed “Operation Buena Vida,” is being led by HSI’s Washington D.C. Field Office, in partnership with the Drug Enforcement Administration and the Fairfax County Police Department.
The prosecution is being handled by Assistant U.S. Attorney Mary K. Daly and Special Assistant U.S. Attorney Elizabeth Eriksen.
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.Three Charged with Operating Fraudulent Federal Income Tax Refund SchemeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned an 18-count indictment charging three individuals with operating an extensive federal income tax refund scheme. The indictment, which was returned yesterday, charges KENYA MALCOLM, 34, and CHARLES ROSS, 40, both of Surprise, Ariz., and BERNARD BRANTLEY, 43, of Waterbury, Conn., with various conspiracy, fraud, theft and identity theft offenses.
The indictment alleges that between November 2012 and May 2013, MALCOLM, BRANTLEY, ROSS and others conspired to file false federal income tax returns in the names of individuals without the individuals’ knowledge. As part of the scheme, BRANTLEY, ROSS and others advertised to victims that they were eligible for “Obama stimulus money” or “government funding” through a prepaid debit card, and then obtained personal identifying information from the victims. MALCOLM, who operated a business in Arizona called “Biggest Refund Taxes,” used the victims’ names, dates of birth, and Social Security Numbers to prepare and file false federal income tax returns. MALCOLM then directed tax refunds totaling more than $2.5 million to be deposited partially into bank accounts controlled by MALCOLM, her family members, her employees, and ROSS, and partially into bank accounts linked to prepaid debit cards that were sent to the victims.
The indictment charges MALCOLM, BRANTLEY and ROSS with one count of conspiracy, which carries a maximum term of imprisonment of five years. The indictment also charges each defendant with six counts of mail fraud and six counts of wire fraud, which carry a maximum term of imprisonment of 30 years on each count. The defendants are also charged with theft of public money, a charge that carries a maximum term of imprisonment of 10 years. Finally, MALCOLM and BRANTLEY are each charged with one count of aggravated identity theft, an offense that carries a mandatory consecutive two-year prison term.
The case has been assigned to Senior U.S. District Judge Warren W. Eginton in Bridgeport.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation and the United States Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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[email protected]Thirteen Arrested During Joint Investigation of Massena Cocaine and Heroin RingRead the Press Release
Investigation Yields Seizures of Cocaine, Crack, Heroin, and Weapons
MASSENA, NEW YORK - United States Attorney Richard S. Hartunian announced that law enforcement officers have arrested twelve individuals on federal drug trafficking charges. A superseding indictment charges the following people with conspiracy to distribute over 500 grams of cocaine, over 28 grams of cocaine base (crack), and heroin, in Franklin, St. Lawrence, and Clinton Counties:
Patrick Lloyd, aka “Problem,” 25, of New York City
Jessica Monaghan, 26, of Massena, New York
Codi Burke, 21, of Massena, New York
Michael Spencer, aka “Don,” 25, of New York City
Bernie Russo, 35, of Massena, New York
Kimberly Jandrew, 27, of Massena, New York
Justin Brailsford, 25, of Massena, New York
Jon Garcia, 22, of New York City
Zachary Huto, 21, of Massena, New York
Leslie Moore, 27, of Massena, New York
Paul Williams, aka “Cash,” 30, of Massena, New YorkLloyd, Garcia, and Williams are in custody on state charges. Monaghan, Burke, Spencer, Russo, Jandrew, Brailsford, Huto, and Moore were arrested this morning. A twelfth person is charged in the indictment but has not yet been arrested. Two others were arrested this morning and are being charged by federal criminal complaints with participating in the drug conspiracy. Four search warrants were executed in Massena today, resulting in seizures of handguns, cocaine, and heroin.
Brailsford and Garcia are also charged with possessing with intent to distribute cocaine and heroin on or about July 6, 2013, in Clinton County (Count 2). Williams is also charged with possessing with intent to distribute over 28 grams of cocaine base (crack) on or about August 8, 2013, in Clinton County (Count 3).
The charges contained in the indictment are merely accusations and the defendants are presumed innocent until and unless proven guilty.
If convicted, each defendant except Lloyd could face a mandatory minimum sentence of five (5) years imprisonment and a maximum sentence that includes imprisonment for forty (40) years and a $5,000,000 fine. The superseding indictment alleges that Lloyd has a prior drug felony conviction, so Lloyd faces a mandatory minimum sentence of imprisonment for ten (10) years and a maximum sentence that includes imprisonment for life and a $10,000,000 fine.
U.S. Attorney Hartunian said: “The St. Lawrence River Valley is the intersection of the front line for border security and the outer reach of big city drug suppliers who travel north seeking new and expanded markets. This case illustrates how vigilance and collaboration can combat threats to our communities, as a multitude of federal, state, local, and tribal agencies worked together to dismantle a ring that brought in and distributed cocaine, crack, and heroin, and employed firearms and violence. The success of our effort to preserve public safety and the idyllic charm of the area depends on our shared commitment to robust enforcement, deterrence, and prevention.”
“While the violence and street-level dealing that comes with drug trafficking are local crimes, the criminal networks behind them stretch to other cities, other states and other countries,” said James C. Spero, Special Agent-in-Charge of ICE Homeland Security Investigations (HSI) in Buffalo. “To effectively attack these networks takes a team effort. An outstanding team investigation by our Border Enforcement Security Task Force is what led to today’s arrests and is what will lead to the complete dismantling of these criminal organizations.”
St. Lawrence County District Attorney Nicole Duvé said: “Today is another important step in addressing the increasing presence of urban heroin and cocaine supply networks in northern St. Lawrence and Franklin Counties. The cooperative efforts of federal, state and local law enforcement agencies, together with assistance from local citizens are the key to reclaiming our communities. I encourage the public be vigilant and to continue to help law enforcement keep our neighborhoods and our children safe and drug free.”
Massena Police Chief Timmy J. Currier said: “Enforcement – specifically arresting and holding those responsible for trafficking and conspiring to provide their product – is important, but the truth is, there is a market for that product. There is a reason drug sales occur: we have people buying illegal drugs. We must continue to work hard to find ways to prevent our teenagers and young adults from becoming drug users, from improving parenting skills, increasing the life skills and decision-making of our children, and developing the economy in our area. Tackling this issue from every angle is our best chance at success.”
Franklin County District Attorney Derek Champagne said: “As District Attorney Duve and I discussed two weeks ago in Franklin County, these criminal groups have no boundaries and it is only through local, state and federal cooperation that we can make a difference and keep organized drug distribution networks out of the North Country. I cannot thank the US Attorney’s Office enough for their leadership in dismantling this group today.”
The investigation revealed that this organization obtained large quantities of cocaine, heroin, and crack from suppliers in New York City and used couriers to transport the drugs to Massena, where the organization’s distribution network sold ounce and gram quantities of the drugs to wholesale drug dealers and drug users in the area. Members of the organization engaged in acts of intimidation and violence.
Seizures by law enforcement officers during this investigation total about 380 grams of cocaine, about 377 grams of heroin, nearly 100 grams of crack, 5 handguns, and over $11,000 in cash.
The superseding indictment is the result of a year-long Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by Homeland Security Investigations (HSI), the Massena Police Department (MPD), the Saint Lawrence County Sheriff’s Office, and the New York State Police (NYSP). The District Attorneys of Clinton, Franklin, and St. Lawrence Counties, the Saint Regis Mohawk Tribal Police Department, the United States Customs and Border Protection Office of Air and Marine, the United States Customs and Border Protection Office of Field Operations, the Drug Enforcement Administration, the Potsdam Police Department, the Royal Canadian Mounted Police, the New York Attorney General’s Office, the Oneida Indian Nation Police, and the United States Border Patrol assisted in the investigation.
The United States is represented in this prosecution by Assistant U.S. Attorney Daniel C. Gardner and Assistant U.S. Attorney Katherine Kopita.
Statement by Assistant Attorney General Bill Baer on Remedy<br /> to Address Apple’s Price Fixing of E-BooksRead the Press Release
Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division issued the following statement today after the U.S. District Court for the Southern District of New York issued an order regarding a remedy to address Apple Inc.’s illegal conduct:
“We’re pleased that the court has issued an order supporting the Department of Justice’s efforts to address Apple’s illegal price fixing conduct. Consumers will continue to benefit from lower e-books prices as a result of the department’s enforcement action to restore competition in this important industry. By appointing an external monitor to ensure future compliance with the antitrust laws, the court has helped protect consumers from further misconduct by Apple. The court’s ruling reinforces the victory the department has won for consumers.”
The court’s order requires Apple to modify its existing agreements with the five major publishers with which it conspired – Hachette Book Group (USA), HarperCollins Publishers L.L.C., Holtzbrinck Publishers LLC, which does business as Macmillan, Penguin Group (USA) Inc. and Simon & Schuster Inc. – to allow retail price competition and to eliminate the most favored nation (MFN) pricing clauses that led to higher e-book prices. Apple is prohibited from serving as a conduit of information among the conspiring publishers or from retaliating against publishers for refusing to sell e-books on agency terms. Apple is also prohibited from entering into agreements with e-books publishers that are likely to increase the prices at which Apple’s competitor retailers may sell that content.
Additionally, the court has decided to appoint an external monitor to ensure that Apple’s internal antitrust compliance policies will be sufficient to catch future anticompetitive activities before they result in harm to consumers. The monitor, whose salary and expenses will be paid by Apple, will work with an internal antitrust compliance officer who will be hired by and report exclusively to the outside directors comprising Apple’s audit committee. The antitrust compliance officer will be responsible for training Apple’s senior executives about the antitrust laws and ensuring that Apple abides by the relief ordered by the court.
On April 11, 2012, the department filed a civil antitrust lawsuit in the U.S. District Court for the Southern District of New York against Apple, Hachette, HarperCollins, Macmillan, Penguin and Simon & Schuster, for conspiring to end e-book retailers’ freedom to compete on price by taking control of pricing from e-book retailers and substantially increasing the prices that consumers paid for e-books.
At the same time that it filed the lawsuit, the department reached settlements with three of the publishers – Hachette, HarperCollins and Simon & Schuster. Those settlements were approved by the court in September 2012. The department settled with Penguin on Dec. 18, 2012, and with Macmillan on Feb. 8, 2013. The Penguin settlement was approved by the court on May 20, 2013, and the Macmillan settlement on Aug. 14, 2013. Under the settlements, each publisher was required to terminate agreements that prevented e-book retailers from lowering the prices at which they sell e-books to consumers and to allow for retail price competition in renegotiated e-book distribution agreements.
The department’s trial against Apple, which was overseen by Judge Denise Cote, began on June 3, 2013. The trial lasted for three weeks, with closing arguments taking place on June 20, 2013. The court issued its opinion that Apple Inc. violated Section 1 of the Sherman Act on July 10, 2013. The department and 33 state attorneys general submitted a proposed remedy to the court on Aug. 2, 2013. Apple submitted a separate remedy. The court held remedy hearings on Aug. 9 and 27, 2013, and asked the parties to revise their proposals. The department, 33 state attorneys general and Apple submitted a joint remedy to the court on Sept. 5, 2013.Springfield Man Pleads Guilty to Producing Child PornographyRead the Press Release
ALEXANDRIA, Va. –Andrew Choi, 35, of Springfield, Va., pleaded guilty today to charges of production of child pornography.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Douglas W. Keen, Chief of Police for the Manassas City Police Department, made the announcement after Choi’s hearing before United States District Court Judge Anthony J. Trenga.
“The targeting and sexual exploitation of our kids represents some of the most evil and heinous criminal acts imaginable,” said U.S. Attorney Neil H. MacBride. “We will aggressively pursue and prosecute all those who, like defendant Choi, have engaged in this deplorable, criminal conduct.”
Chief Keen of Manassas City Police stated that “this is another instance of agencies working together, in cooperation with the US Attorney’s Office, to ensure that the safety of children remains our top priority in these types of cases.”
According to court documents and court proceedings today, Choi engaged in online video chats with at least ten boys under the age of 18 between May 2012 and January 2013. The underage boys performed sex acts on camera and Choi recorded it using a screen capture program. Approximately 600 of these types of videos were discovered on Choi’s computer.
Choi pled guilty to two counts of production of child pornography, and faces a mandatory minimum of 15 years and maximum of 30 years in prison at sentencing, which is scheduled for January 24, 2014
The investigation was conducted by the Manassas City Police Department and the Northern Virginia/DC Internet Crimes against Children Task Force. Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division, is prosecuting the case on behalf of the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.usdoj.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 http://pacer.uspci.uscourts.gov.