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5 November 2013
Virginia Man Pleads Guilty to Traveling into the District of Columbia to Engage in Illicit Sexual ConductWith A Minor and Receipt of Child PornographyRead the Press Release
WASHINGTON – Nicholas Hanlon, 28, of Stafford, Va., pled guilty today to one count of traveling interstate to engage in illicit sexual conduct with a minor and two counts of receipt of child pornography.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Earl L. Cook, Chief of the Alexandria Police Department, Alexandria, Va.
Hanlon entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable Gladys Kessler is to sentence him on Jan. 23, 2014. Hanlon faces a maximum of 30 years of imprisonment for traveling interstate to engage in illicit sexual conduct and a sentence of not less than five years and not more than 20 years of imprisonment for each of the counts related to his receipt of child pornography, as well as fines of up to $250,000 on each count.
According to the government's evidence, on April 25, 2013, a member of the FBI's Child Exploitation Task Force, a detective from the Alexandria Police Department, was contacted by the parent of an under-aged female who was concerned that the child had been engaged in illicit text message conversations with Hanlon and others. The task force member, in an undercover capacity, began communicating with Hanlon, who believed the officer was the child.
Over the next few days, Hanlon engaged in text messaging with the undercover officer. During this period of time, Hanlon arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child.
On April 25, 2013, Hanlon traveled from Virginia to a pre-arranged meeting place in Washington, D.C. When he arrived, he was arrested. Subsequent to his arrest, law enforcement searched Hanlon’s computer and cell phone. Pursuant to that search, law enforcement found evidence that Hanlon had been communicating via text message and email with multiple young girls. Specifically, law enforcement recovered evidence that Hanlon received explicit videos from a female child from Missouri and from a 15-year-old from Virginia.
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 guilty plea, U.S. Attorney Machen, Assistant Director Parlave, Chief Lanier, and Chief Cook praised the work of the MPD and Alexandria Police Detectives and Special Agents of the FBI Child Exploitation Task Force. Finally, they commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
13-378Utah Man Pleads Guilty for Threatening CEORead the Press Release
DENVER – Robert Hutchins, age 60, of Sandy, Utah, pled guilty yesterday before Chief U.S. District Court Judge Marcia S. Krieger to interstate communications involving a threat, U.S. Attorney John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced. Hutchins appeared at the change of plea hearing free on bond. Hutchins is scheduled to be sentenced on February 10, 2014. He was originally indicted by a federal grand jury in Denver on July 10, 2013.
According to the stipulated facts contained in the plea agreement, in 2012, the United States Anti-Doping Agency (USADA) had been investigating allegations that cyclist Lance Armstrong had achieved his prodigious record by cheating; by “doping” and using drugs and other improper means to win. As the investigation heated up in the summer of 2012, Chief Executive Officer of USADA, Travis Tygart, received a barrage of negative public comment, mostly via emails, about USADA’s investigation. In August 2012, it was anticipated that USADA would announce its findings, including that Lance Armstrong would banned from cycling for life. On August 23, 2012, Lance Armstrong released a press statement that he would not challenge USADA’s findings. The negative emails intensified. On August 24, 2012, USADA, as predicted, made the announcement that Lance Armstrong would be banned from cycling for life and disqualified of all his competitive results from August 1, 1998, through August 24, 2012. This disqualification included being stripped of his seven Tour de France titles.
Among the members of the public who were angry over USADA’s methods and conclusions was the defendant, Mr. Hutchins. Beginning in July 2012, Mr. Hutchins sent two emails USADA voicing his displeasure. Those emails, while scathing in tone and full of invective, were not threatening.
On the evening of August 23, 2012, Mr. Hutchins crossed the line and made threats to Travis Tygart. The email was sent to one of USADA’s email addresses with the subject line “Travis Tygert [sic] Hope you have body guards and bullet proof vest.” The email read as follows:
Travis Tygert [sic], Hope you have body guards and bullet proof vest, your [sic] a dead man mother f@%&*#. You just don’t know what you’ve done!!!
You’re a** is f@%&*#.The email was traced to Mr. Hutchins in Sandy, Utah. As a result of the threatening email sent on August 23, 2012, Mr. Travis Tygart hired private security for himself and his family, and moved his family to a secure location while the FBI investigated the source of the threat.
Hutchins faces not more than 5 years in federal prison, and up to a $250,000 fine.
In an unrelated case, Gerrit Kuechle Keats, a Florida doctor, pled guilty on October 7, 2013 to sending threatening communications over the internet to Mr. Tygart for similar reasons. Keats is scheduled to be sentenced by U.S. District Court Judge R. Brooke Jackson on January 23, 2014.
This case was investigated by the FBI.
The defendant is being prosecuted by Assistant U.S. Attorney Valeria Spencer.
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University Place Tax Preparer Sentenced to 30 Months in Prison for Scheme Resulting in more than $4 Million in Tax LossRead the Press Release
A former tax preparer who enriched himself by filing false tax returns for low income people was sentenced today in U.S. District Court in Tacoma to 30 months in prison, three years of supervised release and $2.4 million in restitution for a false claims conspiracy, announced U.S. Attorney Jenny A. Durkan. CLEO J. REED, 62, operated We ‘B’ Tax Service in University Place, Washington from October 2007, until July 2010. During that time period REED filed more than 1300 fraudulent tax returns resulting in a tax loss of $4.2 million. REED took a cut of the fraudulently inflated tax refunds he claimed for his clients. At sentencing U.S. District Judge Benjamin H. Settle ordered REED to serve six months of home detention as part of his supervised release following his prison term.
“This defendant made tax cheats and criminal conspirators of the poor to enrich himself,” said U.S. Attorney Jenny A. Durkan. “By submitting the false returns he raided the federal treasury, taking money away from the very programs that could help these families move from welfare to work.”
According to records filed in the case, REED operated a scheme where he had co-conspirators recruit low income clients for whom he could prepare false tax returns. REED would inflate the wages the clients allegedly earned, so that they could maximize their refund under the Earned Income Tax Credit. REED paid the recruiters a fee for each low income person they brought in to the scheme. REED submitted their tax returns at times without even meeting or speaking to the client. When the tax refund was approved by the Internal Revenue Service, REED kept a portion of the refund as his fee. The large number of returns filed by REED claiming an Earned Income Credit triggered the investigation of his business. Undercover agents posing as clients met with REED and he described how he would falsify their income to boost their tax returns. He also discussed how he put recruiters to work – paying young single mothers to find him other single moms to expand the scheme.
The IRS searched REED’s office on April 15, 2010. He pleaded guilty in March 2013.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and was prosecuted by Assistant United States Attorney Arlen Storm.
Two Defendants Plead Guilty in SchemeTo Steal Trailer-load of GoodsRead the Press Release
WICHITA, KAN. – Two defendants from North Hollywood, Calif., have pleaded guilty in a scheme to steal a load of processed beef from a meatpacker in southwest Kansas, U.S. Attorney Barry Grissom said today.
Oganes Nagapetian, 53, pleaded guilty to one count of conspiracy to commit interstate shipment fraud. His brother, Tigran Nagapetian, 50, pleaded guilty to one count of knowing about the crime and attempting to conceal it from authorities.
In his plea Oganes Nagapetian admitted that in November 2011 he and other conspirators began planning to steal a load of packaged beef valued at $87,500 from the Tyson Fresh Meats, Inc., plant in Holcomb, Kan. First, an unidentified co-conspirator faxed documents from California to a freight broker in Ohio to bid on a contract to haul the load from Holcomb to Vernon, Calif. The conspirators pretended to represent Alan J. Doyle Trucking. On Nov. 3, 2011, Oganes Nagapetian posed as a driver for the company and dropped off a 55-foot refrigerated trailer at the Tyson plant to be loaded with beef and shipped to a meat wholesaler in Vernon, Calif.
Oganes Nagapetian was accompanied by his brother, Tigran Nagapetian. What the defendants did not know was that the freight broker had become suspicious and notified the FBI, which was monitoring the attempt to pick up the load. On Nov. 4, 2011, while waiting for the trailer to be loaded, the defendants became suspicious that they were under surveillance by law enforcement and fled the area in a tractor they had used to drop of the trailer. A Kansas Highway Patrol officer stopped the tractor about an hour later on US 83 in Haskell Country. In the truck, investigators found documents used in the crime. Tigran Nagapetian told troopers that he and his brother were headed to Oklahoma to purchase a trailer, which he knew was not true. He did not make known to law enforcement that Oganes had attempted to steal a trailer of packaged meat.
Sentencing is set for Jan. 27. Oganes Nagapetian faces a maximum penalty of five years in federal prison and a fine up to $250,000. Tigran Nagapetian faces a maximum penalty of three years in federal prison and a fine up to $250,000.
Grissom commended the U.S. Dept. of Agriculture – Office of Inspector General, the FBI, Homeland Security Investigations, the Kansas Highway Patrol, the Los Angeles County Sheriff’s Dept. and its Cargo Cats unit, the Finney County, Kan., Sheriff’s Dept., the California Highway Patrol Cargo Theft Interdiction Program, the National White Collar Crime Center, the National Insurance Crime Bureau and Assistant U.S. Attorney Brent Anderson for their work on the case.Trio from Rio Arriba County Face Federal Heroin Trafficking ChargesRead the Press Release
ALBUQUERQUE – A federal grand jury has indicted three men from Rio Arriba County, N.M., on heroin trafficking charges.
The five-count indictment, which was filed on Oct. 30, 2013, charges Jose Enrique Ontiveros-Soto, 33, a Mexican national unlawfully in the United States and residing in Arroyo Seco, N.M., Jorge Acosta-Sanchez, 20, of Espanola, N.M., and Guadalupe Alcantar, 19, of Medanales, N.M., with participating in a conspiracy to distribute heroin in Rio Arriba County between Aug. 22, 2013 and Sept. 25, 2013.
The indictment also includes four substantive heroin distribution offenses. Count 2 charges Acosta-Sanchez and Alcantar with distributing heroin on Aug. 22, 2013. Count 3 charges Ontiveros-Soto and Alcantar with distributing heroin on Aug. 28, 2013. Count 4 charges Ontiveros-Soto and Acosta-Sanchez with distributing heroin on Sept. 11, 2013, and Count 5 charges Ontiverso-Soto only with distributing heroin on Sept. 25, 2013.
Ontiveros-Soto and Alcantar were arrested on Nov. 1, 2013, and made their initial appearances in federal court yesterday. This morning, both men were arraigned on the indictment and ordered detained pending trial. Acosta-Sanchez was arrested yesterday and made his initial appearance in federal court this morning. He remains in custody pending a detention hearing scheduled for tomorrow.
If convicted on the charges in the indictment, the defendants each face a prison term of not less than five years and not more than 40 years. Indictments are merely accusations and defendants are presumed innocent unless and until convicted beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA, the New Mexico State Police and the HIDTA Region III Multi-Jurisdictional Task Force, and is being prosecuted by Assistant U.S. Attorney Jon K. Stanford.
The HIDTA Region III Multi-Jurisdictional Task Force (Region III) is comprised of officers from the New Mexico State Police, Santa Fe Police Department and the Santa Fe Sheriff’s Office. Region III was first funded in 1999 to address the heroin problem in Rio Arriba and Santa Fe Counties, an area that leads the nation in per capita heroin-related overdose deaths. It is an investigative/enforcement initiative that targets and dismantles poly-drug (primarily heroin and cocaine) trafficking organizations. Region III is part of the High Intensity Drug Trafficking Areas (HIDTA) program which was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Topeka Man Pleads GuiltyTo Making Pipe BombRead the Press Release
TOPEKA, KAN. – A Topeka man has pleaded guilty to making a pipe bomb, U.S. Attorney Barry Grissom said today.
Joseph E. Rogers, 36, Topeka, Kan., pleaded guilty to one count of making a destructive device. In his plea, he admitted that on Nov. 12, 2012, officers of the Topeka Police Department stopped him and co-defendant Kyle C. Roe, 29, Topeka, Kan. Roe was immediately taken into custody on an active felony warrant. Roe told police that he had a bomb in his pocket.
When Rogers was interviewed, he told investigators that he had constructed explosive devices for the entertainment value. Rogers talked about using PVC pipe, wrapped in tape and filled with smokeless powder removed from ammunition.
Rogers is set for sentencing Jan. 27. He faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Co-defendant Kyle C. Rogers pleaded guilty to one count of possessing a destructive device. He is set for sentencing Nov. 26. He faces a maximum penalty of 10 years in federal prison and a fine up to $250,000.
Grissom commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Topeka Police Department and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Three More Defendants Sentenced in Staged Automobile Accident SchemeRead the Press Release
92 defendants have been charged to date in Operation Sledgehammer I-VI
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Jeff Atwater, Florida Chief Financial Officer, Florida Department of Financial Services, and Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, announce that defendants Aaron Freedlander, 51, licensed Chiropractic Physician, of Broward County, Florida, Luis Ivan Hernandez, 40, clinic owner, in Miami-Dade and Palm Beach County, Florida, and Daviel Castro, 27, staged accident participant, check casher and recruiter, of Palm Beach County, Florida were sentenced yesterday by U.S. District Judge Kenneth A. Marra for their participation in an automobile insurance fraud scheme involving staged automobile accidents. Aaron Freedlander was sentenced to 40 months in prison, followed by two years of supervised release; Luis Ivan Hernandez was sentenced to 108 months in prison, followed by three years of supervised release; and, Daviel Castro was sentenced to 58 months in prison, followed by two years of supervised release. In addition, Freedlander was ordered to pay $900,697.92 in restitution; Hernandez was ordered to pay restitution in the amount of $4,232,248.04; and, Castro was ordered to pay $1,359,208.73 in restitution. Freedlander will also be required to surrender his chiropractic license.
Each of the defendants previously pled guilty to one count of conspiring to commit mail fraud, in violation of Title 18, United States Code, Section 1341, all in violation of Title 18, United States Code, Section 1349; and multiple counts of mail fraud, in violation of Title 18, United States Code, Sections 1341 and 2. In addition, Hernandez and Castro were charged with one count of conspiring to commit money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1), all in violation of Title 18, United States Code, Section 1956(h). Hernandez was also charged with multiple counts of money laundering, and Castro was charged with one substantive count of money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1)(A)(i), 1956(a)(1)(B)(i), 1956(a)(1)(B)(ii), and 2.
According to court documents, between approximately October 2006 and December 2012, the conspiracy members staged automobile accidents by recruiting individuals to participate in the accidents. Daviel Castro served as an accident participant and also recruited others to participate in staged accidents. The participants were referred to as “Perro” and “Perra” or “Macho” and “Hembra.” Thereafter, the clinic owners, including defendant Luis Ivan Hernandez, caused the submission of false insurance claims through chiropractic clinics that were controlled by members of the conspiracy. To execute the scheme, the true owners of the chiropractic clinics recruited individuals, who had the medical or chiropractic licenses required by the state to open a clinic, to act as “nominee owners” of the clinics. The co-conspirators also hired complicit chiropractors, including Aaron Freedlander, and therapists who prescribed and billed for unnecessary treatments and/or for services that had not been rendered. Thereafter, complicit clinic employees prepared and submitted claims to the automobile insurance companies for payment for these unnecessary or non-rendered services. Twenty-one clinics participated in this scheme. Luis Ivan Hernandez was the “true owner” of six of those clinics.
Furthermore, according to court records, once fraud proceeds were received from the insurance companies, the clinic owners, including Luis Ivan Hernandez also recruited individuals including Daviel Castro, to help the clinics launder the insurance proceeds. Sentencing documents showed that Castro cashed checks worth $27,899.35 in laundered proceeds.
Starting with Operation Sledgehammer I in June 2011 and including the defendants charged in Operation Sledgehammer VI, 92 defendants have been charged for their participation in this automobile insurance fraud scheme. Of those 92 defendants, 56 have been charged federally by the U.S. Attorney's Office, resulting in court-ordered restitution of more than $5 million to the defrauded insurance companies. Thirty-six defendants have been charged by the Palm Beach County State Attorney's Office.
Mr. Ferrer commended the efforts of the FBI, IRS-CI, the Florida Department of Insurance Fraud, the Palm Beach County State Attorney's Office, and the Greater Palm Beach County Health Care Fraud Task Force for their outstanding work in this case. Mr. Ferrer also recognized the National Insurance Crime Bureau (NICB) for its collaboration and assistance in this investigation. The federal cases are being prosecuted by Assistant U.S. Attorney A. Marie Villafaña and the state cases are being prosecuted by the Palm Beach County State Attorney's Office.
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.
Sioux Falls Man Sentenced for Bank RobberyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man convicted of robbing a bank at gunpoint was sentenced on November 4, 2013, by Senior U.S. District Judge Charles B. Kornmann.
Nathan Michael Reisetter, age 39, was sentenced to 117 months in custody. He received 57 months for Bank Robbery and 60 months for Possession of a Firearm in Relation to a Federal Crime of Violence, to be served consecutively. He will be under supervised release for 5 years upon his release from custody. He was fined $12,500 and ordered to make restitution of $26,355.
Reisetter was indicted by a federal grand jury on March 19, 2013, on both counts and pled guilty on August 13, 2013.
On January 2, 2013, Reisetter entered First Bank and Trust in Toronto and used a 9mm handgun to intimidate the two tellers present. He handed one of the bank tellers a garbage bag and told her to fill it with money from the vault. Once the Defendant had the bag of money and while still holding the firearm, he directed the tellers to a back room of the bank and fled.
This case was investigated by the Deuel County Sheriff's Office, the South Dakota Division of Criminal Investigation, and the Federal Bureau of Investigation. Assistant U.S. Attorney John E. Haak prosecuted the case.
Reisetter was immediately turned over to the custody of the U.S. Marshals Service.Shiprock Man Pleads Guilty to Assaulting a Tribal Police OfficerRead the Press Release
ALBUQUERQUE – Victor Tyler, 44, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty this morning to an assault with a dangerous weapon charge under a plea agreement with the U.S. Attorney’s Office.
Tyler was arrested on Aug. 20, 2013, based on a criminal complaint charging him with assault with a dangerous weapon. Tyler subsequently was indicted and charged with that same charge and also with assaulting a federal officer with a dangerous weapon and inflicting bodily injury.
This morning, Tyler pleaded guilty to Count 1 of the indictment charging him with assault with a dangerous weapon. In his plea agreement, Tyler admitted that on Aug. 16, 2013, officers of the Navajo Nation Division of Public Safety came to his Shiprock residence in response to his wife’s call for assistance. At the time, Tyler had armed himself with two kitchen knives and locked himself into a bedroom. After two uniformed officers entered the residence, Tyler came out of the bedroom with the knives, ignored the officers’ repeated instructions that he drop the knives, and threw one of the knives at one of the officers. The knife struck the officer in the foot, causing injury to her foot.
Tyler has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Tyler faces a maximum penalty of ten years in prison.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Mark T. Baker.
Seven Panhandle Residents, Who Were Arrested in Law Enforcement Operation in September 2013, Plead Guilty to Federal Charges TodayRead the Press Release
AMARILLO, Texas — Seven defendants, who were arrested in an Organized Crime Drug Enforcement Task Force Operation (OCDETF) in September 2013, appeared in federal court today, before U.S. District Judge Mary Lou Robinson, and pleaded guilty to various drug and drug-related offenses.
Miguel Carrasco, 33, pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting. He faces a maximum statutory penalty of not less than five years or more than 40 years in prison and a $5 million fine.
Conrad Nava, aka “Chauncy,” 36, pleaded guilty to one count of operating an illegal gambling business. He faces a maximum statutory penalty of five years and a $250,000 fine.
Jessie Herrera, Jr., 34, pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting. He faces a maximum statutory penalty of not less than five years or more than 40 years in prison and a $5 million fine.
Traci Michelle Ramos, 23, pleaded guilty to one count of distribution and possession with intent to distribute five grams or more of methamphetamine and aiding and abetting. She faces a maximum statutory penalty of not less than five years or more than 40 years in prison and a $5 million fine.
Curtis Gonzales, 35, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute controlled substances. He faces a maximum statutory penalty of not less than 10 years and up to life in prison and a $10 million fine.
Shannon Drell Harris, aka “Shawn,” 43, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute cocaine. He faces a maximum statutory penalty of 20 years in prison and a $1 million fine.
Thiraphong Vongphrachanh, 22, pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime and aiding and abetting. He faces a maximum statutory penalty of not less than five years and up to life in prison and a $250,000 fine.
Last week, three defendants in that OCDETF Operation and a related case pleaded guilty. Floyd Daniel Teafatiller, 32, pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting. He faces a maximum statutory penalty of not less than five years or more than 40 years in prison and a $5 million fine. Arcel Vega Martinez, 40, pleaded guilty to one count of unlawful use of a communications facility. He faces a maximum statutory penalty of not more than four years in prison and a $250,000 fine. Richard Anthony Rios, 36, pleaded guilty to one count of possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting. He faces a maximum statutory penalty of not less than five years or more than 40 years in prison and a $5 million fine.
The investigation involved undercover purchases and search warrants. In total, throughout the investigation, approximately $500,000 in cash, three kilograms of cocaine, 20 pounds of methamphetamine and six firearms were seized.
The remaining four defendants are set for trial on January 6, 2014.
The investigation is being led by the DEA and FBI, along with the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Potter and Randall County Sheriff’s Offices, the Potter and Randall County Attorney’s Offices, the Potter and Randall County District Attorney’s Offices, the Amarillo Police Department, and the Texas Department of Public Safety. Assistant U.S. Attorneys Jeffrey R. Haag, Christy Drake and Vicki Lamberson are in charge of the prosecution.
Rochester Man Sentenced on Drug ChargesRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Mohammed Abdeldayem, a/k/a “Mike,” 34, of Rochester N.Y., who was convicted of conspiracy to possess with intent to distribute 500 grams or more of cocaine, was sentenced to 10 in years prison by U.S. District Judge David G. Larimer.
Assistant U.S. Robert A. Marangola, who handled the case, stated that Abdeldayem, who operated a convenience store on Norton Street in Rochester, was responsible for the distribution of cocaine in Rochester that was trafficked in kilogram quantities from New York City.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, the Greater Rochester Area Narcotics Enforcement Team, under the direction of Lieutenant Gerald Smith, and the Monroe County District Attorney's Office under the direction of Sandra Doorley.Richland County Man Sentenced to 28 Years in Federal Prison on Methamphetamine Related ChargesRead the Press Release
A Richland County man was sentenced on November 1, 2013, to twenty eight years in federal prison on methamphetamine related charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
“Let us hope that these extremely long, but well deserved, federal sentences can do something to persuade folks that meth is a scourge on Southern Illinois. I cannot understate the terrible effect that meth has on people.” said United States Attorney Wigginton.
Marty Cody Stacy, 47, of Calhoun, IL, was sentenced to 336 months in prison (28 years), eight years of supervised release following his imprisonment, and fined $250. Stacy was convicted following a trial of all five counts in an Indictment. Count 1 charged that from August 2010, to on or about May 30, 2012, in Richland County, Stacy conspired with others known and unknown to the grand jury to manufacture more than 50 grams of methamphetamine. Counts 2-5 charged that Stacy possessed pseudoephedrine, knowing and having reasonable cause to believe that the pseudoephedrine would be used to manufacture methamphetamine on the dates of May 30, 2012 (Count 2), February 8, 2012 (Count 3), October 25, 2011 (Count 4), and October 11, 2011 (Count 5).
The investigation was conducted by the Richland County Sheriff’s Office.
The case is being handled by Assistant United States Attorney George Norwood.
Queens Check Cashing Company and Its Owner Plead Guilty in $19 Million SchemeRead the Press Release
BROOKLYN, NY – Earlier today, Belair Payroll Services, Inc. (“Belair”), a now defunct, multi-branch check cashing company based in Flushing, New York, and its owner, Craig Panzera, 47, pled guilty to failing to follow reporting and anti-money laundering requirements for over $19 million in transactions, in violation of the Bank Secrecy Act (BSA). Panzera also pled guilty to conspiring to defraud the United States by willfully failing to pay income and payroll taxes. As part of the guilty plea, Belair will forfeit $3,267,252.10, and Panzera will pay restitution in the amount of $946,841.17 to the IRS.
The guilty pleas were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Department of Homeland Security, Immigration and Customs Enforcement (ICE) Acting Director John Sandweg; and Chief of the Internal Revenue Service Criminal Investigation (IRS-CI) Richard Weber. The pleas were accepted by United States District Judge Frederic Block.
“As today’s guilty pleas make clear, Panzera used the hard working residential community of Queens as a cover for his illegal schemes. Under the guise of offering much needed financial services to the community, Panzera instead operated Belair as a crooked enterprise, hiding illicit transactions, lining his own pockets and evading taxes,” stated United States Attorney Lynch. “We are committed to working with our law enforcement partners to expose and eradicate money laundering and tax fraud from our communities.” Ms. Lynch thanked the Department of Justice, Criminal Division, Fraud Section, ICE and IRS-CI for their work on the investigation.
According to court filings, from June 2009 through June 2011, numerous checks drawn on bank accounts of shell corporations were presented to Belair employees to be cashed at Belair. The checks appeared to be related to health care services, but in fact, the corporations did no legitimate business. The shell corporations and the corresponding bank accounts on which the checks were written were established in the names of foreign nationals, many of whom were located overseas. Belair accepted the checks and, in return, provided cash in excess of $10,000 per check. Panzera and others at Belair intentionally failed to require or obtain identification documents or information from the individuals presenting the checks. Belair filed CTRs falsely stating that the checks were cashed by the foreign nationals who set up the shell corporations, and with respect to certain CTRs, failed to indicate the full amount of cash provided to the individuals. More than $19 million in checks were cashed through Belair during the course of the scheme. By systematically cashing checks in this manner, Panzera and Belair willfully failed to maintain an effective anti-money laundering program. Prior to the indictment, Belair had operated five check cashing stores in Queens.
The charges in the indictment against Panzera and Belair’s co-defendants remain pending and are merely accusations. Those defendants are presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Patricia E. Notopoulos and Trial Attorneys Claiborne W. Porter, Kevin G. Mosley and Darrin McCullough of the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS).
The Defendants:
BELAIR PAYROLL SERVICES, INC.
Flushing, New YorkCRAIG PANZERA
Age: 47
Naples, FloridaE.D.N.Y. Docket No. 11-CR-591 (S-1)
Orlando, Fla., Area Hospice to Pay $3 Million to Resolve Allegations That It Billed Medicare for Patients Not Terminally IllRead the Press Release
Hospice of the Comforter Inc. (HOTCI) has agreed to pay $3 million to resolve allegations that it violated the False Claims Act by submitting false claims to the Medicare program for hospice services provided to patients who were not eligible for the Medicare hospice benefit, the Justice Department announced today. HOTCI is headquartered in Altamonte Springs, Fla., and provides hospice services to patients residing in Seminole, Osceola and Orange counties in Florida.
“This settlement is a result of the Justice Department’s continuing efforts to prevent the abuse of the taxpayer-funded Medicare hospice program, which is intended to provide comfort and care to terminally ill persons during the last six months of their lives,” said Assistant Attorney General for the Civil Division Stuart F. Delery. “We will pursue those who seek to misuse this important benefit for their own enrichment.”
The government alleged that between December 2005 and December 2010, HOTCI engaged in practices that resulted in billing Medicare for patients who were not terminally ill. Specifically, HOTCI allegedly directed its staff to admit all referred patients without regard to whether they were eligible for the Medicare hospice benefit, falsified medical records to make it appear that certain patients were eligible for the benefit when they were not, employed field nurses without hospice training, established procedures to limit physicians’ roles in assessing patients’ terminal status and delayed discharging patients when they became ineligible for the benefit.
As part of this settlement, HOTCI has agreed to enter into a Corporate Integrity Agreement with the Inspector General of the Department of Health and Human Services that provides for procedures and reviews to be put in place to promptly detect and prevent future conduct similar to that which gave rise to the settlement. In addition, HOTCI’s former Chief Executive Officer Robert Wilson has agreed to a three-year, voluntary exclusion from Medicare, Medicaid and other federal health care programs.
“This settlement represents a fair and appropriate resolution of this troubling matter,” said Acting U.S. Attorney for the Middle District of Florida A. Lee Bentley III. “Hospice providers in our district should be on notice that our office will do what it takes to protect our citizens from this kind of misconduct.”
“Hospice care is a sacred trust from which no provider should fraudulently profit,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson. “Claiming tax dollars for people who are not terminally ill ?? and therefore ineligible for hospice care ?? cannot be tolerated.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $16.7 billion through False Claims Act cases, with more than $11.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The allegations settled today arose from a lawsuit filed by a former HOTCI employee, Douglas Stone, under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. Stone’s share of the recovery has not been determined.
This matter was handled by the Justice Department’s Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the Middle District of Florida and the Department of Health and Human Services Office of the Inspector General.
The case is United States ex rel. Stone v. Hospice of the Comforter Inc ., No. 6:11-cv-1498-ORL-22-DAB (M.D. Fla.). The claims settled by this agreement are allegations only; there has been no determination of liability.
Orlando, FLA., Area Hospice to Pay $3 Million to Resolve Allegations That It Billed Medicare for Patients Not Terminally IllRead the Press Release
WASHINGTON – Hospice of the Comforter Inc. (HOTCI) has agreed to pay $3 million to resolve allegations that it violated the False Claims Act by submitting false claims to the Medicare program for hospice services provided to patients who were not eligible for the Medicare hospice benefit, the Justice Department announced today. HOTCI is headquartered in Altamonte Springs, Fla., and provides hospice services to patients residing in Seminole, Osceola and Orange counties in Florida.
“This settlement is a result of the Justice Department’s continuing efforts to prevent the abuse of the taxpayer-funded Medicare hospice program, which is intended to provide comfort and care to terminally ill persons during the last six months of their lives,” said Assistant Attorney General for the Civil Division Stuart F. Delery. “We will pursue those who seek to misuse this important benefit for their own enrichment.”
The government alleged that between December 2005 and December 2010, HOTCI engaged in practices that resulted in billing Medicare for patients who were not terminally ill. Specifically, HOTCI allegedly directed its staff to admit all referred patients without regard to whether they were eligible for the Medicare hospice benefit, falsified medical records to make it appear that certain patients were eligible for the benefit when they were not, employed field nurses without hospice training, established procedures to limit physicians’ roles in assessing patients’ terminal status and delayed discharging patients when they became ineligible for the benefit.
As part of this settlement, HOTCI has agreed to enter into a Corporate Integrity Agreement with the Inspector General of the Department of Health and Human Services that provides for procedures and reviews to be put in place to promptly detect and prevent future conduct similar to that which gave rise to the settlement. In addition, HOTCI’s former Chief Executive Officer Robert Wilson has agreed to a three-year, voluntary exclusion from Medicare, Medicaid and other federal health care programs.
“This settlement represents a fair and appropriate resolution of this troubling matter,” said Acting U.S. Attorney for the Middle District of Florida A. Lee Bentley III. “Hospice providers in our district should be on notice that our office will do what it takes to protect our citizens from this kind of misconduct.”
“Hospice care is a sacred trust from which no provider should fraudulently profit,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson. “Claiming tax dollars for people who are not terminally ill ─ and therefore ineligible for hospice care ─ cannot be tolerated.”
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $16.7 billion through False Claims Act cases, with more than $11.9 billion of that amount recovered in cases involving fraud against federal health care programs.
The allegations settled today arose from a lawsuit filed by a former HOTCI employee, Douglas Stone, under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. Stone’s share of the recovery has not been determined.
This matter was handled by the Justice Department’s Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the Middle District of Florida and the Department of Health and Human Services Office of the Inspector General.
The case is United States ex rel. Stone v. Hospice of the Comforter Inc., No. 6:11-cv-1498-ORL-22-DAB (M.D. Fla.). The claims settled by this agreement are allegations only; there has been no determination of liability.
North Idaho Man Sentenced for Theft from Coeur D'Alene TribeRead the Press Release
COEUR D’ALENE — Billy E. Moffitt, 27, of Lewiston and Plummer, Idaho, was sentenced today in United States District Court to time served — 159 days — for conspiracy to commit theft from a tribal organization, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill ordered Moffitt to serve three years of supervised release and pay $4,175.26 in restitution, joint and several with co-defendant Angeline George, to the Coeur d’Alene Tribal Housing Authority. Moffitt pleaded guilty to the charge on August 20, 2013.
According to the plea agreement, George was employed by the Coeur d’Alene Tribal Housing Authority and was issued a credit card related to her duties. Between February 2 and February 23, 2013, Moffitt and George drove from the Coeur d’Alene reservation to Spokane, Washington, where George purchased $4,175.26 in money orders from local Money Tree stores. Moffitt or George would then cash the money orders and use the cash for their personal use and benefit.
Angeline George pleaded guilty on August 30, 2013, to conspiracy to commit theft from a tribal organization. She is set for sentencing on December 3, 2013, at the federal courthouse in Coeur d’Alene.
The case was investigated by Coeur d’Alene Tribal Police and the Federal Bureau of Investigation.
Nicholas County Men Sentenced to Federal Prison for Methamphetamine ConspiracyRead the Press Release
Nine from Nicholas sentenced to federal prison this year in meth ring take-down
CHARLESTON, W.Va. –Two men were sentenced to federal prison for their participation in a Nicholas County methamphetamine conspiracy, U.S. Attorney Booth Goodwin announced today. Roy Spinks, Sr., of Craigsville, 59, was sentenced to two years in prison. Spinks’ co-defendant, Michael Boley, 31, of Summersville, was also sentenced to two years in prison for conspiracy to manufacture methamphetamine. The sentences were handed down today by United States District Judge John T. Copenhaver, Jr. in Charleston.
Spinks Sr., who previously pleaded guilty in August to making a residence available for the purpose of manufacturing methamphetamine, permitted an associate, Felicia Bess, to cook methamphetamine at his Kyler Road residence in Nicholas County. Boley, who also pleaded guilty in August, cooked methamphetamine at Spinks’ Nicholas residence, as well as at several other locations in and around Nicholas County from October 2010 until June 2011.
Bess, 23, of Summersville, was sentenced in February to three years in prison for her participation in the conspiracy. Also in February, Roy Spinks, Jr., 39, of Craigsville, was sentenced to six years in prison for making a residence available for the purpose of manufacturing methamphetamine. During the conspiracy, Spinks Jr. and Bess worked together to manufacture methamphetamine using a technique known as the “shake and bake” method. Spinks Jr. also told police that he manufactured methamphetamine at several different residences in Nicholas County
In a related matter, Bratten Smith, 28, of Richwood, was sentenced in February to two years in prison. From February 2011 until May 1, 2011, Smith helped Spinks and Bess cook methamphetamine at a residence in Nicholas County. Smith also supplied pseudoephedrine and other ingredients that were used to manufacture methamphetamine. In exchange for the meth-making materials, Smith received methamphetamine for his personal use.
In addition, Shannon Ellison (3 ½ years), Jennifer Curry (2 years), Rachel Petrey (five years and 10 months), and Terry Mullins (four years and three months), all of Nicholas County, were sentenced to federal prison earlier this year for conspiracy to manufacture methamphetamine.
The U.S. Forestry Service, the Central West Virginia Drug Task Force, the West Virginia State Police, the Nicholas County Sheriff’s Department and the Richwood Police Department conducted the investigation. Assistant United States Attorney John Frail handled the prosecutions.
New York City Man Sentenced to Prison for Federal Cocaine Trafficking ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a New York City man was sentenced today by Senior United States District Judge Edwin M. Kosik to serve 40 months in prison on the charge of conspiracy to distribute cocaine.
According to United States Attorney Peter J. Smith, Richard Caba-Batista, age 35, formerly of New York City, previously admitted to participating in a drug-trafficking conspiracy which obtained cocaine in Texas and New York City and distributed the cocaine in the Monroe County and Northampton County areas in 2011.
Caba-Batista also faces deportation proceedings.
In addition to the prison term, Senior Judge Kosik also ordered that Caba-Batista be supervised by a probation officer for four years following his prison sentence if he is not deported.
Previously, Dickson Gutierrez, age 37, and Jhonathan Gutierrez-Esquea, age 33, both formerly of Stroudsburg, were sentenced to 60 months in prison for participating in the same cocaine-trafficking conspiracy. As part of his plea agreement, Dickson Gutierrez also agreed to forfeit to the United States two properties in the Dominican Republic which were purchased with the proceeds of cocaine trafficking activity.
The investigation was conducted by the Drug Enforcement Administration, the Stroud Area Regional Police Department and the Internal Revenue Service, Criminal Investigations.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
New York Check Cashing Company and Owner Plead Guilty for Roles in $19 Million SchemeRead the Press Release
Belair Payroll Services Inc. (Belair), a multi-branch check cashing company in Flushing, N.Y., and its owner, Craig Panzera, 47, pleaded guilty today for failing to follow reporting and anti-money laundering requirements for more than $19 million in transactions, in violation of the Bank Secrecy Act (BSA). Panzera also pleaded guilty to conspiring to defraud the United States by willfully failing to pay income and payroll taxes.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Loretta Lynch of the Eastern District of New York, Acting Director John Sandweg of U.S. Immigration and Customs Enforcement (ICE), and Chief Richard Weber of the Internal Revenue Service Criminal Investigation (IRS-CI) made the announcement.
As part of the guilty plea, Belair will forfeit $3,267,252.10, and Panzera will pay restitution in the amount of $946,841.17 to the IRS. Sentencing for Belair and Panzera will be determined at a later date.
According to court records, from in or about June 2009 through June 2011, certain individuals presented to Belair’s manager and other employees checks to be cashed at Belair. The checks were written on accounts of shell corporations that appeared to be health care related, but in fact, the corporations did no legitimate business. The shell corporations and their corresponding bank accounts on which the checks were written were established in the names of foreign nationals, many of whom were no longer in the United States.
Belair accepted these checks and provided cash in excess of $10,000 to the individuals. Panzera and others at Belair never obtained any identification documents or information from those individuals. Belair filed currency transaction reports (CTRs) that falsely stated the checks were cashed by the foreign nationals who set up the shell corporations, and in certain CTRs, Belair failed to indicate the full amount of cash provided to the individuals. The individuals cashed more than $19 million through Belair during the course of the scheme. Panzera and Belair willfully failed to maintain an effective anti-money laundering program by cashing these checks.
The charges in the indictment against Panzera’s and Belair’s co-defendants remain pending and are merely accusations. Those defendants are presumed innocent unless and until proven guilty.
The cases are being investigated by agents from ICE Homeland Security Investigations and IRS-CI. These cases are being prosecuted by Trial Attorneys Claiborne W. Porter and Kevin G. Mosley of the Criminal Division’s Asset Forfeiture and Money Laundering Section’s (AFMLS) Money Laundering and Bank Integrity Unit, Trial Attorney Darrin McCullough of AFMLS’s Forfeiture Unit, and Assistant U.S. Attorney Patricia Notopoulos of the Eastern District of New York.
The Money Laundering and Bank Integrity Unit investigates and prosecutes complex, multi-district and international criminal cases involving financial institutions and individuals who violate the money laundering statutes, the Bank Secrecy Act and other related statutes. The Unit’s prosecutions generally focus on three types of violators: financial institutions, including their officers, managers and employees, whose actions threaten the integrity of the individual institution or the wider financial system; professional money launderers and gatekeepers who provide their services to serious criminal organizations; and individuals and entities engaged in using the latest and most sophisticated money laundering techniques and tools.
New Haven Man Charged with Escape from Federal CustodyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that a federal grand jury sitting in Hartford returned an indictment today charging MICHAEL BEVERLY, 37, formerly of New Haven, with one count of escape from federal custody.
The indictment alleges that on June 17, 2013, BEVERLY escaped from the Watkinson House Residential Reentry Center in Hartford where he was completing a federal prison term.
On January 29, 2009, BEVERLY was sentenced in Hartford federal court to 77 months of imprisonment for possession of ammunition by a convicted felon.
BEVERLY was apprehended by the U.S. Marshals Service and New Haven Police on July 3, 2013, and is currently incarcerated.
If convicted of escape from custody, BEVERLY faces a maximum term of imprisonment of five years and a fine of up to $250,000.
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.
This matter has been investigated by the U.S. Marshals Service and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Christopher Mattei.
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(203) 821-3722 [email protected]Naturalized U.S. Citizen Charged with Fraudulently Obtaining CitizenshipRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce that defendant Chi Da Liu a/k/a Zhida Liao, 55, formerly of El Cerrito, California and Guatemala, has been arrested on charges of fraudulently obtaining U.S. citizenship, in violation of Title 18, United States Code, Section 1425(b).
Liu was arrested in Northern California on September 3, 2013, where a U.S. Magistrate Judge ordered that he be detained and transported to the Southern District of Florida by the U.S. Marshals Service. Liu made his initial appearance this afternoon in federal court in Miami before U.S. Magistrate Judge Jonathan Goodman. Liu waived his right to grand jury indictment and agreed to proceed by information. The information charges that on or about October 4, 2010, in San Francisco County, California, Liu knowingly applied for and attempted to obtain U.S. citizenship and evidence of naturalization and citizenship, to which he was not entitled.
In 2011 and 2012, Liu was convicted in two separate cases in the Southern District of Florida of visa fraud, a currency-reporting violation, and alien smuggling. In a plea agreement, Liu agreed to leave the United States within five days of his release from prison and to voluntarily renounce his U.S. citizenship within 10 days thereafter. Liu was released from federal prison on July 15, 2013, and did not leave the country prior to his arrest on September 3, 2013.
If convicted, Liu faces a maximum sentence of 10 years in prison and a $250,000 fine, as well as mandatory revocation of his U.S. citizenship and cancellation of his naturalization certificate.
Mr. Ferrer commended the investigative efforts of ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Robert T. Watson.
An information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
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.
Native of Mexico Sentenced to Time Served for Illegally Re-entering United StatesRead the Press Release
PITTSBURGH, PA - An illegal alien found in Pittsburgh, Pennsylvania, pleaded guilty and has been sentenced in federal court to time served for his conviction of Re-Entry into the United States after Deportation, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Luis Alberto Alvarez Arguello, a/k/a Rosalio Martinez Alvarez, a/k/a Rosalio Alvarez Martinez, a/k/a Mario Martinez Contreras, 28, a native of Mexico.
According to information presented to the court, Luis Alberto Alvarez-Arguello, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on January 14, 2011 and June 13, 2011. Luis Alberto Alvarez-Arguello was found to be illegally present in Pittsburgh on July 19, 2013, by the Port Authority Police.
Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Immigration and Customs Enforcement and the Port Authority Police for the investigation leading to the successful prosecution of Luis Alberto Alvarez Arguello, a/k/a Rosalio Martinez Alvarez, a/k/a Rosalio Alvarez Martinez, a/k/a Mario Martinez Contreras.
Nampa Man Pleads Guilty to Unlawfully Possessing Firearms While Under A Protective OrderRead the Press Release
BOISE – Darrel Dwayne Smith, 44, of Nampa, Idaho, pleaded guilty today in United States District Court to one count of unlawful possession of two firearms by a person under a protective order, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, on June 16, 2013, Smith was arrested for misdemeanor DUI, possession of marijuana and possession of drug paraphernalia. In the bed of the pickup truck he was driving, Smith had a loaded Ruger .44 caliber revolver, ammunition, and a Smith and Wesson .22 caliber revolver. At the time of his arrest, Smith was under a protective order issued in Canyon County, Idaho, on January 24, 2013, and valid until July 31, 2013. The order prohibited Smith from harassing, annoying, disturbing the peace of, contacting, or otherwise communicating with his wife. According to the plea agreement, Smith agreed to forfeit the firearms and ammunition.
Smith is set for sentencing on January 24, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Smith was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Montrose County Man Is Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
DENVER – David Anthony Roesener, age 32, of Montrose, Colorado, was sentenced yesterday by Senior U.S. District Court Judge John L. Kane to serve 120 months (10 years) in federal prison for possession of child pornography, U.S. Attorney John Walsh and FBI Denver Division Special Agent in Charge Thomas Ravenelle announced. Following his prison sentence, Judge Kane ordered Roesener to serve 20 years on supervised release. The defendant appeared at the sentencing hearing in custody, and was remanded at the conclusion of the hearing.
Roesener was first charged by Criminal Complaint on December 11, 2012. He was indicted by a federal grand jury in Denver on December 18, 2012. He pled guilty before Judge Kane on April 4, 2013. He was sentenced yesterday, November 4, 2013.
According to court documents, including the stipulated facts contained in the plea agreement, on November 11, 2011, and FBI Task Force Officer, operating in an undercover capacity in New Haven, Connecticut, accessed the internet using a peer-to-peer program. The task force officer observed a screen name connected to the network that was sharing files which depicted images and videos of child pornography. Further investigation revealed that the screen name resolved to an Internet Protocol (IP) address in Montrose, Colorado.
A search warrant was served on that address. FBI agents and task force officers found images and videos on Roesener’s computer. The images included prepubescent children engaging in sexually explicit conduct, some of which depicted sadistic and masochistic conduct. Among the material seized were various images and videos of unclothed male children bound and gagged, taped to walls, and performing sex acts on adult males and other children.
“The defendant in this case collected images that exploited vulnerable children sexually,” said U.S. Attorney John Walsh. “The 10 year prison sentence is more than appropriate given the types of images this defendant collected.”
“The FBI remains committed to ensuring those responsible for exploiting innocent children are actively investigated and brought to justice,” said Thomas P. Ravenelle, Special Agent in Charge of the FBI’s Denver Division Field Office.
This case was investigated by the FBI.
The defendant was prosecuted by Assistant U.S. Attorney Michelle Heldmyer.
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Milwaukee Man Pleads Guilty to Transporting Minors to Cedar Rapids for the Purpose of ProstitutionRead the Press Release
A man who transported two minor girls from Milwaukee, Wisconsin to Cedar Rapids, Iowa for the purpose of having them engage in prostitution pled guilty today in federal court in Cedar Rapids.
Robert Jackson, age 31, from Milwaukee, Wisconsin, was convicted of one count of transporting minors across state lines with the intent they engage in prostitution.
At the plea hearing, Jackson admitted that on July 16, 2013, he transported two females, referred to in the indictment as Jane Doe #1 and Jane Doe #2, from Milwaukee, Wisconsin, to Cedar Rapids, Iowa, for the purpose of having them engage in prostitution. The girls were each under 18 years of age.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Jackson remains in custody of the United States Marshal and will remain in custody pending sentencing. Jackson faces a mandatory minimum sentence of ten years’ imprisonment and a possible maximum sentence of life imprisonment, a $250,000 fine, $100 in special assessments, and five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Iowa Division of Criminal Investigation, the Marion Police Department, and the Johnson County Sheriff’s Office, with the assistance of the Milwaukee Human Trafficking Task Force.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-cr-0063.
Melbourne Man Sentenced to 5 Years in Federal Prison on Child Pornography ChargesRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. sentenced Kevin Porter (27, Melbourne) yesterday to 60 months in federal prison for distribution of child pornography. Porter was also ordered to serve a 10-year term of supervised release upon completion of his prison sentence and must register as a sex offender. The court also ordered Porter to forfeit his computer equipment.
Porter was found guilty on August 21, 2013.According to court documents, in April 2012, Porter distributed child pornography over the Internet via a peer-to-peer file sharing program. Law enforcement officers conducted a search of Porter’s home and found that he used his computer to possess images and movies of minor children being sexually abused and exploited.
This case was investigated by the Brevard County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It was prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.
It is another 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 (CEOS), 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.projectsafechildhood.gov.
Martinez Resident Sentenced to More Than 5 Years in Prison for Conspiracy to Commit Sex Trafficking of A Minor and Being A Felon in Possession of A FirearmRead the Press Release
OAKLAND – Eric Demetrius Smith was sentenced yesterday to 70 months in prison for conspiracy to commit sex trafficking of a minor and, separately, for being a felon in possession of a firearm, United States Attorney Melinda Haag announced.
On August 12, 2013, Smith, 26, of Martinez, pleaded guilty to two charges: (1) conspiracy to commit sex trafficking of a minor, and (2) felon in possession of a firearm. According to the plea agreement, Smith admitted that, in March 2013, he recruited a minor to become a prostitute. He advertised the prostitution services on the internet and arranged for commercial sex at various motels in Contra Costa County. Smith also admitted that on April 7, 2012 he was a felon in possession of a firearm.
Smith was indicted by a federal grand jury on May 16, 2013 for conspiracy to commit sex trafficking. He was indicted by a federal grand jury on March 21, 2013 for being a felon in possession of a firearm.
The sentence was handed down by The Honorable Claudia Wilken, U.S. District Court Chief Judge, following a guilty plea to Count One of the Indictment in case number CR-13-00315, in violation of 18 U.S.C. § 1594(c), and to Count One of the Indictment in case number CR-13-00185, in violation of 18 U.S.C. § 922(g)(1). Judge Wilken also sentenced the defendant to a three year period of supervised release.
Rodney C. Villazor is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Vanessa Quant. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
(Smith 922 indictment )
(Smith 1594 indictment )
Manhattan U.S. Attorney Announces Arrest of SuspendedPort Chester Police Chief for Witness Tampering and RetaliationRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation, (“FBI”), announced today the unsealing of a two-count Complaint charging JOSEPH KRZEMINSKI, the Village of Port Chester Police Chief, with tampering with, and retaliating against, a witness in a federal investigation being conducted by the FBI. The Complaint alleges that the FBI is conducting an investigation into allegations surrounding the disappearance of over $26,000 in cash and narcotics from the evidence room at the Port Chester Police Department, and other allegations of theft and misconduct. The Complaint further alleges that KRZEMINSKI, age 62, physically threatened and retaliated against the Port Chester Police Department’s Acting Chief, who has been cooperating with the FBI in its investigation. KRZEMINSKI was arrested yesterday afternoon and was presented before United States Magistrate Judge Lisa Margaret Smith in White Plains federal court. KRZEMINSKI was released pursuant to a $100,000 personal recognizance bond to the custody of his son.
According to the Complaint unsealed in White Plains federal court:
Since early September 2013, the FBI has been investigating the theft of more than $26,000 in cash from one of the evidence rooms at the Port Chester (Westchester County, New York) Police Department headquarters and additional matters. Shortly after the investigation began, KRZEMINSKI was directed by the Village of Port Chester "not to exercise any of the authority, responsibilities and duties associated with being the Chief of Police" until he was authorized to return to duty. The Village also appointed a Captain of the Port Chester Police Department to the position of Acting Chief. After assuming his duties, the Acting Chief provided information to the FBI relating to possible violations of federal law.
On October 28, 2013, KRZEMINSKI forced his way inside the Acting Chief's home in Port Chester and shouted that the Acting Chief was a "rat" and a "rat bastard." KRZEMINSKI also stated to the Acting Chief, “Who do you think you are telling those people what's going on?" and further said that the Acting Chief did not have the authority to make such reports. KRZEMINSKI also stated, in substance and in part, that he would fire the Acting Chief when KRZEMINSKI returned to duty. During the encounter, KRZEMINSKI put his hands on the Acting Chief's shoulders near his neck. At another point during the encounter, KRZEMINSKI made a fist and cocked his arm, as if he intended to strike the Acting Chief.
On the same day, KRZEMINSKI placed a call to the Port Chester Police Department and told a supervisory police officer that “if [the Acting Chief] doesn’t think I’m coming back he’s dreaming” and that “the first thing I’m gonna do is retaliate against him.” KRZEMINSKI further explained that when he returned to work he would immediately place the Acting Chief on unpaid leave. KRZEMINSKI repeatedly told the supervisory police officer to tell the Acting Chief what he had said.
The Port Chester Village Board met in the late afternoon of October 31, 2013. As the Board was about to go into executive session, KRZEMINSKI forced his way into the room and refused to leave. After the Acting Chief warned KRZEMINKSI that he would be arrested if he did not leave, KRZEMINSKI stated "Go fuck yourself. Don't you tell me you gonna arrest me." KRZEMINSKI then stated, "Let me tell you what this scumbag did to me." The Acting Chief then directed police officers who were present to arrest KRZEMINSKI. KRZEMINSKI resisted arrest, but was handcuffed and removed.
KRZEMINSKI faces, upon conviction, a maximum sentence of 20 years' imprisonment on each of the two counts charged in the Complaint, which charge KRZEMINSKI with witness tampering and retaliating against a witness.
This prosecution is being handled by the Office's White Plains Division. Assistant U.S. Attorney James McMahon is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
KrzeminskiJoseph.Complaint
Manchester "OG" Gang Member Sent Back to Federal PrisonRead the Press Release
PITTSBURGH - United States Attorney David J. Hickton announced today that Corneil Jones, who has also used the aliases Robert Eric James, Eric Germaine James, Kornell Jones, Enrique Williams, Kevin Liles, Richard Nelson, Lewis Mitchell, Julian Robinson, and Germaine Jones, was sentenced on Nov. 4, 2013 for violating his federal supervised release.
According to information presented to the Court by Assistant United States Attorney Ross E. Lenhardt, Jones was out of federal Bureau of Prisons custody 22 days before he violated the supervision of United States Probation Officer Terrell Lewis. On that occasion, the defendant tested positive for drug use. Twenty-three 23 days later, on Nov. 11, 2012, Jones was leaving the Serenity Night Club on Hamilton Avenue in Pittsburgh with two convicted felons and entered an SUV. The vehicle failed to stop for Pittsburgh Police officers who observed drugs and a loaded semiautomatic .40 caliber Glock handgun with an extended length magazine being thrown from the vehicle. Police located over 100 packages of drugs, including crack cocaine, powder cocaine and marijuana, along with a cellphone and large sums of cash, as a result of the incident.
Chief U.S. District Court Judge Joy Flowers Conti found that Jones had violated several conditions of his supervision including possessing drugs, associating with felons and associating with individuals engaged in criminal activity. Judge Conti sentenced Jones to 21months of federal incarceration, six months of house arrest and additional supervision as a result of the violations. Jones faces a trial on the underlying drug charges on Feb. 10, 2014, in the Allegheny County Court of Common Pleas.
The exhibits entered at the violation hearing included photographs of Jones' tattoos, which evidence his affiliation with the Manchester "OG", or "Original Gangster" street gang in the North Side of Pittsburgh. The tattoos included "Manchester" across his throat, including depictions of ammunition and firearms, "MOG" (Manchester OG), "1700" which represents his geographic area within Manchester and several references to "Killa County" and "CK" or "Crip Killer", referencing a rival gang.
Jones was originally sentenced to 69 months of imprisonment and three years supervision for illegally possessing a stolen .357 revolver on Dec. 16, 2006 and throwing a semiautomatic .40 caliber pistol during a high speed vehicle pursuit and subsequent foot chase on May 13, 2007.
The Court learned that the defendant's criminal career began at the age of 15 when he robbed a school student and continued with juvenile adjudications for giving a false name to police and dealing drugs on three different dates. Because Jones had lied about his age, he was prosecuted as an adult for felony drug charges that he committed as a juvenile. In addition to his two federal firearms convictions, his adult convictions include using a vehicle without permission, fleeing police, drug dealing, illegal firearms possession (on two different dates) and forging court documentation.
Louisville Felon Charged in Recent String of Restaurant Hold-UpsRead the Press Release
– Federal charges result from “Project Recoil”
LOUISVILLE, Ky. – David J. Hale, United States Attorney for the Western District of Kentucky, announced the federal indictment of a Louisville felon, today charged with robbing three restaurants located in Jefferson County, Kentucky. These federal charges stem from “Project Recoil,” the on-going partnership of multiple Jefferson County, Kentucky law enforcement agencies, created by U.S. Attorney Hale to maximize penalties for the most violent offenders and to reduce violent crime in our community.
The seven-count indictment charges Kenneth Dion Flintroy, Jr., age 24, with three counts of obstructing interstate commerce through robbery, three counts of brandishing a firearm during a robbery, and one count of being a felon in possession of a firearm. Flintroy is charged with robbing the McDonald’s located at 7426 3rd Street Road and the Papa John’s located at 6902 Southside Drive on April 16, 2013, and with robbing the McDonald’s located at 8600 Dixie Highway on May 2, 2013. The federal robbery charges are brought pursuant to the Hobb’s Act, which criminalizes robberies that affect interstate commerce.
“Project Recoil is one piece of a comprehensive anti-violent crime strategy which emphasizes collaboration among federal, state and local law enforcement and prosecutorial agencies to more effectively investigate and prosecute violent criminals in Louisville. By working together, and by including all of our community stakeholders in the broad effort to stem violent crime, we will reduce violence and its impact on our city,” stated U.S. Attorney Hale.
According to court records, on May 23, 2011, Flintroy was convicted of three counts of trafficking in a controlled substance within 1000 yards of a school, and three counts of possession of drug paraphernalia in Callaway County Circuit Court located in Murray, Kentucky.
If convicted at trial, Flintroy faces no less than 57 years in prison and up to life, a fine of up to $1,750,000 and up to and including a life term of supervised release.
This case is being prosecuted by Assistant United States Attorneys Tom Dyke and Amanda Gregory and is being investigated by the Louisville Metro Police Department.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Lewiston Woman Sentenced for Misappropriating Postal FundsRead the Press Release
Judge Orders Former Employee to Pay Over $3,600 in Restitution
COEUR D’ALENE – Shawn M. Stone, 49, of Lewiston, Idaho, was sentenced today in United States District Court in Coeur d’Alene to three years’ probation for misappropriation of postal funds, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill ordered Stone to pay $3,658.96 in restitution to the U.S. Postal Service. She pleaded guilty to the indictment on August 20, 2013.
According to the plea agreement, on April 2, 2012, agents with the U.S. Postal Service Office of Inspector General went to the U.S. Post Office in Winchester, Idaho, to investigate the suspected theft of postal money orders. An examination of Stone’s cash drawer at the post office located 29 postal money order vouchers issued between February 26 and March 22, 2012, totaling $3,904.54. Stone acknowledged that she had converted the money orders associated with the vouchers for her personal use.
The case was investigated by the United States Postal Service Office of Inspector General.
LG Chem Michigan, Inc. to Pay over $1.2 Million to the United States to Settle False Claims Act AllegationsRead the Press Release
Government alleged that the Holland, Michigan company improperly obtained Recovery Act funds to pay employees engaged in recreational and volunteer activities
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr., announced today that LG Chem Michigan, Inc. (“LGCMI”) will pay the United States $1,231,319 to resolve allegations, under the federal False Claims Act, that the company improperly sought and obtained federal funds to pay employees who were engaged in recreational and volunteer activities. This amount is in addition to $842,189 that LGCMI refunded to the U.S. Department of Energy (“DOE”) in January 2013 based on the same allegations. LGCMI did not admit liability as part of this settlement, and the Government did not make any concessions regarding the legitimacy of its claims.
In 2010, DOE awarded LGCMI over $150 million in funds under the American Recovery and Reinvestment Act of 2009 to construct and operate a lithium-ion battery manufacturing plant in Holland, Michigan. The United States alleged that during the first three quarters of 2012, before LGCMI transitioned battery production from foreign sources to the Michigan plant, LGCMI submitted claims to obtain the federal share of wages and benefits paid to domestic workers who were engaged in non-work activities such as watching movies, playing games, and performing volunteer work. The United States further alleged that in response to governmental inquiries about those activities—and particularly in corporate executives’ written communications to DOE and statements made during a DOE audit—LGCMI failed to fully disclose the number of employees involved in those activities, the nature and scope of those activities, and the resulting losses to the government.
U.S. Attorney Miles noted that under the federal False Claims Act, the United States can seek up to three times the damages that it sustains, plus statutory penalties, from those who submit false claims for federal funds. U.S. Attorney Miles emphasized that the manner in which LGCMI handled the unallowable costs shortly after those costs were identified factored into the Government’s settlement position in this case. “Those who receive federal grant funds must deal openly and honestly with the federal government,” U.S. Attorney Miles said. “This settlement should send a clear message to our corporate citizens: ‘How you respond to a problem can be as significant as the problem itself.’”
Gregory H. Friedman, the DOE Inspector General, said, “Evaluating the management of Department funds received as part of the 2009 Recovery Act has been a priority of my office. We are pleased that this matter, which involved the expenditure of significant unallowable costs by LGCMI, has been settled. I want to express my thanks to the U.S. Attorney’s Office for its efforts and to the Inspector General Special Agents and auditors who pursued this matter so effectively.”
This case was investigated by the DOE, Office of Inspector General, and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Adam B. Townshend represented the United States..
END
Kamiah Man Sentenced for Assaulting Woman with A Dangerous WeaponRead the Press Release
COEUR D’ALENE — Andrew Tony Blackeagle, 30, of Kamiah, Idaho, was sentenced today in United States District Court to 67 months in prison, followed by three years of supervised release for assault with a dangerous weapon, U.S. Attorney Wendy J. Olson announced. Blackeagle appeared before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d’Alene. He pleaded guilty to the charge on August 20, 2013.
According to the plea agreement, Blackeagle admitted that on October 12, 2012, he assaulted a woman, striking her with his hand and foot while threatening to cut her with a knife. The victim sustained a laceration to her scalp during the incident.
The case was investigated by the Federal Bureau of Investigation and Nez Perce Tribal Police, with the assistance of the Lewis County Sheriff’s Office.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Jury Convicts Las Vegas Man for Heroin Trafficking ConspiracyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – A U.S. District Court jury convicted Jaime Ruiz-Montes, 43, of Las Vegas, Nevada for his role in a heroin trafficking organization operating in central Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Robert Corso, Special Agent in Charge, Drug Enforcement Administration (DEA) and Colonel Paul Pride, Superintendent of the Ohio State Highway Patrol, announced the verdict returned today following a trial that began October 30 before Senior U.S. District Judge Peter C. Economus.Trial testimony showed that on January 7, 2013, law enforcement officers from the Drug Enforcement Administration, along with troopers of the Ohio State Highway Patrol, arrested Ruiz-Montes in Columbus after he met with Marcos Osorio, 35, of Columbus and obtained a package containing nearly two kilograms of suspected heroin from Osorio’s vehicle.
Both Osorio and the passenger in Ruiz-Montes’ vehicle, Benjamin Uribe-Cervantes, 37, of Columbus, were also arrested. All three men were charged with conspiracy to possess with the intent to distribute more than one kilogram of heroin along with substantive heroin trafficking charges. Osorio and Uribe-Cervantes each pleaded guilty to drug trafficking charges.
The jury convicted Ruiz-Montes of one count of conspiracy, and one count of attempted possession with intent to distribute more than one kilogram of heroin, each crime is punishable by at least 20 years and up to life in prison.
Judge Economus will schedule a date for sentencing Ruiz-Montes and Uribe-Cervantes. Osorio is scheduled to be sentenced on January 7, 2014. All three have been in custody since their arrest.
U.S. Attorney Stewart commended the investigation conducted by the Ohio State Highway Patrol, DEA and the Franklin County Drug Task Force, and Assistant U.S. Attorney Salvador A. Dominguez and Special Assistant U.S. Attorney Steve Dunbar with Columbus City Attorney Rick Pfeiffer’s Office, who are representing the United States in the case.
Irish National Pleads Guilty in New York to Crimes Relating to Illegal Trafficking of Endangered Rhinoceros HornsRead the Press Release
Michael Slattery Jr., 25, an Irish national, pleaded guilty today in federal court in Brooklyn, N.Y., to conspiracy to violate the Lacey Act in relation to illegal rhinoceros horn trafficking, announced Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, and Loretta E. Lynch, U.S. Attorney for the Eastern District of New York.
Slattery pleaded guilty to one count of conspiracy to violate the Lacey Act, which carries a maximum penalty of five years in prison. Under the terms of the plea agreement, any proceeds from the illegal trafficking that remain in the United States will be forfeited or put toward the criminal fine. Slattery is scheduled to be sentenced by U.S. District Judge John Gleeson in the Eastern District of New York on Jan. 10, 2014.
In the plea agreement, Slattery admitted that he, along with others, traveled throughout the United States to illegally purchase and sell endangered rhinoceros horns. Slattery was arrested in September as part of “Operation Crash,” a nationwide, multi-agency crackdown on those involved in the black market trade of endangered rhinoceros horn.
“Slattery and his co-conspirators traveled to the United States to profit from the illegal trade in black rhinoceros horns,” said Acting Assistant Attorney General Dreher. “The black rhino is a species that, without our protection, could be headed for extinction in our own time. Rhino horn trafficking is a violation of the laws enacted by Congress to protect endangered species from extinction and the Justice Department will aggressively prosecute those who engage in this egregious market.”
“Today’s guilty plea highlights our commitment to protect endangered species, like the black rhinoceros, by prosecuting those who would profit from the rhinos’ extinction,” said U.S. Attorney Lynch. “Michael Slattery traveled the world in pursuit of illicit profit from the sale of blank rhino horns. But instead of gaining a windfall by contributing to the demise of an age-old species, Slattery now faces up to five years in prison for his illegal conduct.”
“The involvement of an alleged member of an organized criminal group in rhino horn trafficking speaks to the scope, scale, and lawlessness of this problem,” said U.S. Fish and Wildlife Service Director Dan Ashe. “We will continue to work closely with the Department of Justice to crack down on profiteers whose crimes are pushing rhinos to the brink of extinction.”
“The black rhinoceros has been driven to the brink of extinction by this illicit trade,” said Special Agent in Charge James T. Hayes of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in New York. “HSI, along with our partners at the U.S. Fish and Wildlife Service and the Department of Justice, stand ready to protect these beautiful creatures from the villains who would trade the rhino’s continued existence on this planet for a quick buck.”
Rhinoceros are a herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law, and all black rhinoceros species are endangered.
Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Nevertheless, the demand for rhinoceros horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on ornamental carvings, good luck charms or alleged medicinal purposes, leading to a decimation of the global rhinoceros population.
Operation Crash is a continuing investigation being conducted by the Department of the Interior’s U.S. Fish and Wildlife Service in coordination with other federal and local law enforcement agencies including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. The investigation is being led by the Special Investigations Unit of the FWS Office of Law Enforcement and involves a nationwide task force of agents focused on rhino trafficking.
According to the information, plea agreement and statements made during court proceedings: Beginning in May 2010 and continuing until April 2011, Slattery, along with others, traveled within the United States to purchase rhinoceros horns, which he, along with others, then resold to private individuals or consigned to auction houses in the United States. The profits from the sale of the rhinoceros horns were distributed via cashier’s checks made out to Slattery and others. Slattery used a fictitious “Endangered Species Bill of Sale” in connection with the purchase and sale of rhinoceros horns.
In September 2010, Slattery, along with others, traveled from London to Houston, where they attempted to purchase a taxidermied black rhinoceros mount with two horns from a business in Austin, Texas. The manager of the business refused to sell the mount to the defendant because Slattery and the others did not have proof that they resided in the State of Texas. Within days of being refused, Slattery returned to the establishment in Austin, where, with the assistance of a “straw buyer” that Slattery and his co-conspirators hired, the group purchased the mount for $18,000. At the time of the sale, the purchasers were given an “Endangered Species Bill of Sale” that stated “[s]eller expressly states that the described taxidermy is an endangered species and that interstate or foreign sales, barter and trade are strictly prohibited …. [p]ursuant to [the Endangered Species Act]. Buyer has expressly stated that he/she is a current resident of the State of Texas and has no intention of participating in any form of interstate commerce involving the described taxidermy.”
Following the purchase of the mount, Slattery and his co-conspirators traveled to Flushing, N.Y., where they sold the horns from the mount and other horns they had acquired to an individual for $50,000. At the time of the sale, Slattery and his co-conspirators provided the purchaser with a false and fictitious “Endangered Species Bill of Sale.” The “Endangered Species Bill of Sale” stated that the two pair of black rhinoceros horns were purchased in August 2010. The falsified document also included a false and fictitious FWS emblem, which it did not have at the time of purchase from the establishment in Texas. Pursuant to instructions from Slattery and his co-conspirators, the purchaser paid for the horns with cashier’s checks. One check in the amount of $12,500 was made payable to Michael Slattery Jr.
U.S. Attorney Lynch and Acting Assistant Attorney General Dreher commended FWS and ICE-HSI for their outstanding work in this investigation.
The case is being handled by the U.S. Attorney’s Office for the Eastern District of New York and the Environmental Crimes Section of the U.S. Department of Justice’s Environment and Natural Resources Division. Assistant U.S. Attorney Julia Nestor and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section are in charge of the prosecution.Irish National Pleads Guilty in Brooklyn Federal Court to Crimes Relating to Illegal Trafficking of Endangered Rhinoceros HornsRead the Press Release
WASHINGTON – Michael Slattery Jr., 25, an Irish national, pleaded guilty today in federal court in Brooklyn, N.Y., to conspiracy to violate the Lacey Act in relation to illegal rhinoceros horn trafficking, announced Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, and Loretta E. Lynch, U.S. Attorney for the Eastern District of New York.
Slattery pleaded guilty to one count of conspiracy to violate the Lacey Act, which carries a maximum penalty of five years in prison. Under the terms of the plea agreement, any proceeds from the illegal trafficking that remain in the United States will be forfeited or put toward the criminal fine. Slattery is scheduled to be sentenced by U.S. District Judge John Gleeson in the Eastern District of New York on Jan. 10, 2014.
In the plea agreement, Slattery admitted that he, along with others, traveled throughout the United States to illegally purchase and sell endangered rhinoceros horns. Slattery was arrested in September as part of “Operation Crash,” a nationwide, multi-agency crackdown on those involved in the black market trade of endangered rhinoceros horn.
“Slattery and his co-conspirators traveled to the United States to profit from the illegal trade in black rhinoceros horns,” said Acting Assistant Attorney General Dreher. “The black rhino is a species that, without our protection, could be headed for extinction in our own time. Rhino horn trafficking is a violation of the laws enacted by Congress to protect endangered species from extinction and the Justice Department will aggressively prosecute those who engage in this egregious market.”
“Today’s guilty plea highlights our commitment to protect endangered species, like the black rhinoceros, by prosecuting those who would profit from the rhinos’ extinction,” said U.S. Attorney Lynch. “Michael Slattery traveled the world in pursuit of illicit profit from the sale of black rhino horns. But instead of gaining a windfall by contributing to the demise of an age-old species, Slattery now faces up to five years in prison for his illegal conduct.”
“The involvement of an alleged member of an organized criminal group in rhino horn trafficking speaks to the scope, scale, and lawlessness of this problem,” said U.S. Fish and Wildlife Service Director Dan Ashe. “We will continue to work closely with the Department of Justice to crack down on profiteers whose crimes are pushing rhinos to the brink of extinction.”
“The black rhinoceros has been driven to the brink of extinction by this illicit trade,” said Special Agent in Charge James T. Hayes of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in New York. “HSI, along with our partners at the U.S. Fish and Wildlife Service and the Department of Justice, stand ready to protect these beautiful creatures from the villains who would trade the rhino’s continued existence on this planet for a quick buck.”
Rhinoceros are a herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law, and all black rhinoceros species are endangered.
Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. Nevertheless, the demand for rhinoceros horn and black market prices have skyrocketed in recent years due to the value that some cultures have placed on ornamental carvings, good luck charms or alleged medicinal purposes, leading to a decimation of the global rhinoceros population.
Operation Crash is a continuing investigation being conducted by the Department of the Interior’s U.S. Fish and Wildlife Service in coordination with other federal and local law enforcement agencies including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. The investigation is being led by the Special Investigations Unit of the FWS Office of Law Enforcement and involves a nationwide task force of agents focused on rhino trafficking.
According to the information, plea agreement and statements made during court proceedings:
Beginning in May 2010 and continuing until April 2011, Slattery, along with others, traveled within the United States to purchase rhinoceros horns, which he, along with others, then resold to private individuals or consigned to auction houses in the United States. The profits from the sale of the rhinoceros horns were distributed via cashier’s checks made out to Slattery and others. Slattery used a fictitious “Endangered Species Bill of Sale” in connection with the purchase and sale of rhinoceros horns.
In September 2010, Slattery, along with others, traveled from London to Houston, where they attempted to purchase a taxidermied black rhinoceros mount with two horns from a business in Austin, Texas. The manager of the business refused to sell the mount to the defendant because Slattery and the others did not have proof that they resided in the State of Texas. Within days of being refused, Slattery returned to the establishment in Austin, where, with the assistance of a “straw buyer” that Slattery and his co-conspirators hired, the group purchased the mount for $18,000. At the time of the sale, the purchasers were given an “Endangered Species Bill of Sale” that stated “[s]eller expressly states that the described taxidermy is an endangered species and that interstate or foreign sales, barter and trade are strictly prohibited …. [p]ursuant to [the Endangered Species Act]. Buyer has expressly stated that he/she is a current resident of the State of Texas and has no intention of participating in any form of interstate commerce involving the described taxidermy.”
Following the purchase of the mount, Slattery and his co-conspirators traveled to Flushing, N.Y., where they sold the horns from the mount and other horns they had acquired to an individual for $50,000. At the time of the sale, Slattery and his co-conspirators provided the purchaser with a false and fictitious “Endangered Species Bill of Sale.” The “Endangered Species Bill of Sale” stated that the two pair of black rhinoceros horns were purchased in August 2010. The falsified document also included a false and fictitious FWS emblem, which it did not have at the time of purchase from the establishment in Texas. Pursuant to instructions from Slattery and his co-conspirators, the purchaser paid for the horns with cashier’s checks. One check in the amount of $12,500 was made payable to Michael Slattery Jr.
U.S. Attorney Lynch and Acting Assistant Attorney General Dreher commended FWS and ICE-HSI for their outstanding work in this investigation.
The case is being handled by the U.S. Attorney’s Office for the Eastern District of New York and the Environmental Crimes Section of the U.S. Department of Justice’s Environment and Natural Resources Division. Assistant U.S. Attorney Julia Nestor and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section are in charge of the prosecution.
Illegal Alien Sentenced to Time Served for Re-Entering U.S. After Being DeportedRead the Press Release
PITTSBURGH, PA - An illegal alien found in Cranberry Township, Pennsylvania, pleaded guilty and has been sentenced in federal court to time served on his conviction of Re-Entry into the United States after Deportation, United States Attorney David J. Hickton announced today.
United States District Judge Gustave Diamond imposed the sentence on Josue Elias Calidonio-Castillo, 29, formerly from Honduras.
According to information presented to the court, Josue Elias Calidonio-Castillo, an alien, was removed from the United States by United States Immigration and Customs Enforcement on September 1, 2006. Josue Elias Calidonio-Castillo was found on July 16, 2013, in Cranberry Township, Pennsylvania.
Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Immigration and Customs Enforcement for the investigation leading to the successful prosecution of Josue Elias Calidonio-Castillo.
Huntington Heroin Dealer Enters Guilty Plea in Federal CourtRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty on Nov. 4 in federal court in connection with his role in a heroin distribution conspiracy, announced U.S. Attorney Booth Goodwin. Forty-nine-year-old Ricky Ray Rockwell pleaded guilty to conspiracy to distribute heroin before Chief United States District Judge Robert C. Chambers in Huntington.
Between November 2010 and July 2011, Rockwell participated with convicted felons Kevin Luthor Robinson and Jermaine D. Dickerson to distribute heroin in and around the Huntington area.
Rockwell told police that during the illegal drug scheme, he controlled the door to a Huntington residence that was used primarily as a place to distribute illegal drugs. Rockwell also completed illegal heroin transactions on behalf of Robinson and Dickerson. Afterward, Rockwell gave the drug proceeds to his co-conspirators at the completion of the drug transactions.
Robinson, 44, was sentenced to 11 years and three months in prison in March for his role in the illegal drug conspiracy. Dickerson, 36, was also sentenced in March to 15 years and nine months in federal prison. Robinson and Dickerson, both of Columbus, previously pleaded guilty in December 2012 to conspiracy to distribute heroin and 28 grams or more of crack cocaine.
During the scheme, Robinson and Dickerson arranged frequent trips to Columbus to purchase heroin and cocaine. The illegal drugs were then brought to Huntington and sold. The defendants also utilized several Huntington residences to store, prepare and package illegal drugs during the fall of 2010 through July 2011.
Rockwell faces up to 20 years in federal prison when he is sentenced on February 24, 2014.
This case was investigated by the DEA, the Huntington Police Department, and the High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
Goodwin Announces Three Guilty Pleas in Federal Prescription Drug CrackdownRead the Press Release
BLUEFIELD, W.Va. – Three individuals from Mercer County pleaded guilty in federal court this week in connection with the illegal distribution of powerful prescription painkillers, announced U.S. Attorney Booth Goodwin. The charges against each defendant were brought as part of the Bluefield Pill Initiative, a concerted attack by federal, state, and local government on the illegal distribution of prescription drugs in the southern region of West Virginia.
The following defendants pleaded guilty on Nov. 4 to distribution of hydromorphone, a powerful prescription painkiller commonly known as Dilaudid: Darryl Shrader, 53, of Spanishburg; Bobby Michael Short Jr., 46, of Princeton; and Faith Michelle Akers, 44, of Princeton. Shrader, Short and Akers each sold hydromorphone pills to a confidential informant working in cooperation with law enforcement. The pill transactions took place in and around Mercer County.
All three defendants face up to 20 years in federal prison when they are sentenced on March 10, 2014 by Senior United States District Judge David A. Faber.
The Bluefield Pill Initiative is a collaborative, multi-agency regional law enforcement effort designed to halt prescription drug trafficking in Mercer, McDowell, and Wyoming counties. The Bluefield Pill Initiative is led by the Southern Regional Drug and Violent Crime Task Force, which includes the West Virginia State Police Bureau of Criminal Investigation, the Mercer, McDowell and Wyoming County Sheriff’s Departments, and the Bluefield and Princeton Police Departments. Assistant United States Attorney John File is in charge of the prosecutions.
Fort Yates Man Sentenced for Domestic Assault by Habitual OffenderRead the Press Release
BISMARCK– U.S. Attorney Timothy Q. Purdon announced that on Nov. 4, 2013, Marcus Flying Horse, 29, Fort Yates, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of domestic assault by habitual offender. Flying Horse pleaded guilty to the charge on Aug. 13, 2013.
Judge Hovland sentenced Flying Horse to serve two years and three months in federal prison, to be followed by three years of supervised release. Flying Horse was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
On March 1, 2013, Flying Horse committed a domestic assault by hitting a woman in the eye. At the time when this assault took place, Flying Horse had at least six prior misdemeanor convictions in Standing Rock Tribal Court for qualifying domestic violence offenses.
The case was investigated by the Bureau of Indian Affairs – Standing Rock Agency, with the assistance of the Standing Rock Tribal Prosecutor’s Office and Standing Rock Tribal Court.
Assistant U.S. Attorney Gary Delorme and Special Assistant U.S. Attorney Erin Shanley prosecuted the case. Ms. Shanley’s position is funded by a Department of Justice Office on Violence Against Women grant program.
Fort Yates Man Sentenced for Child AbuseRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Nov. 4, 2013, Terry Holy Elk Face, 21, Fort Yates, N.D., pleaded guilty and was sentenced by U.S. District Judge Daniel L. Hovland on a charge of child abuse in Indian country.
Judge Hovland credited Holy Elk Face for 159 days in custody, to be followed by two years of supervised release. Holy Elk Face was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
On Dec. 22, 2012, Holy Elk Face hit a child in the face, which caused the child to fall into a piece of furniture. The child’s injuries were not life threatening.
The case was investigated by the Bureau of Indian Affairs – Standing Rock Agency.
Assistant U.S. Attorney Gary Delorme prosecuted the case.
Former Police Officer Sent to Federal PrisonRead the Press Release
HOUSTON - Michael Mares, a former officer with the Onalaska Police Department, has been ordered to federal prison for providing firearms to a convicted felon, announced United States Attorney Kenneth Magidson. Mares, 51, pleaded guilty, admitting he knowingly sold a firearm and various police items to a convicted felon who was planning a home invasion in which he and others planned on impersonating police officers.
Today, U.S. District Judge Nancy Atlas, ordered Mares serve a term of 37 months in federal prison. At the hearing, the court admonished Mares that when police officers arrive at a home, citizens rely on them actually being police officers and that Mares helped others who intended to abuse that trust to commit crimes.On Aug. 30, 2011, a FBI confidential source met with Mares and provided him with $1000 to purchase a firearm, five police t-shirts and police strobe lights. The source told Mares that he was a convicted felon. The source further noted he and others were going to conduct a home invasion of a narcotics trafficker and intended to impersonate police officers in order to gain control of the residence. Mares agreed to purchase the items for him.
The investigation culminated in the indictment of 25 members and associates of the Texas Mexican Mafia charged with drug trafficking, various firearms offenses and violent crimes in aid of racketeering.
According to the indictment, the TMM formed in the early 1980s in the Texas Department of Criminal Justice. The defendants conspired with one another and others from 2008 through October 2012 to procure illegal drugs and distribute the drugs to numerous associates involved in drug trafficking in order to carry out the business of the gang. Gang members also sold numerous assault rifles and other guns as well as detonation cord to FBI sources.
Mares has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The four-year investigation was conducted by the FBI, Texas Department of Public Safety, Bureau of Alcohol, Tobacco, Firearms and Explosives and Houston Police Department. Assistant United States Attorneys Tim S. Braley and Mark Donnelly are prosecuting.
Former Member of Moreno Valley City Council Agrees to Plead Guilty to Federal Bribery Charge for Taking $2.3 Million Cash PaymentRead the Press Release
RIVERSIDE, California – In a case stemming from what is believed to be the largest bribe ever accepted by a public official in an undercover operation, a former member of the Moreno Valley City Council has agreed to plead guilty to a federal bribery charge for taking a $2.36 million cash payment from an undercover operative posing as a real estate broker.
Marcelo Co, 64, was charged this morning with one bribery count and one count of filing a false corporate tax return. In court documents filed this morning in United States District Court, Co agreed to plead guilty to the two charges that could send him to federal prison for as long as 13 years.
“Mr. Co orchestrated an elaborate and brazen scheme to undermine the democratic process in Moreno Valley,” said United States Attorney André Birotte Jr. “Whether he was motivated by power or greed, these crimes constitute a wholesale violation of his oath to work for the citizens who elected him.”
Co, who was elected to the City Council in November 2010 and resigned from his seat in August after being charged in state court in an unrelated welfare fraud case, is expected to make his initial court appearance in the federal bribery case early next month.
“It is a very sad day for the citizens of Moreno Valley when one of their elected council members sacrifices his legal and ethical obligations for power and greed,” said Riverside County District Attorney Paul Zellerbach. “This type of unlawful conduct by Mr. Coe undermines the very fabric of good government and what we all hope and expect from our elected officials.”
The case against Co is the result of an ongoing investigation by the Inland Regional Corruption Task Force, which is comprised of prosecutors, agents and investigators from the Federal Bureau of Investigation, IRS – Criminal Investigation, the Riverside County District Attorney’s Office and the United States Attorney’s Office.
“Mr. Co regularly traded votes, land and confidential information in exchange for cash to fund his personal bank account, rather than what was in the best interest of the residents of Moreno Valley," said Bill Lewis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. "This case was a result of seamless collaboration by the Inland Regional Corruption Task Force, whose members share a mission of rooting out corruption across the Inland Empire."
The court documents filed this morning outline a bribery scheme in which Co told a businessman and an undercover FBI operative posing as a real estate broker that he would control a voting majority of the Moreno Valley City Council and would be able to guarantee land use decisions that would benefit the businessman and the land broker. Co also promised to always vote in favor of land use decisions that would benefit the real estate broker.
Co solicited campaign donations from the businessman, who was cooperating with the investigation, and the FBI undercover operative. Co eventually received payments of $5,000 and $10,000 that he said were to be used to finance the campaigns of individuals who would vote with him on land use issues.
In the fall of 2012, Co met with the undercover operative to discuss a multimillion dollar sale of a 30-acre parcel that he owned. Co told the real estate broker that once he had control of the City Council, he could change the zoning of the property and the land value would dramatically increase. With the City Council election in November 2012, Co told the undercover investigator that he had the votes to alter the zoning and increase the value of Co’s 30-acre parcel, which had been appraised at $710,000. Co proposed that the undercover operative purchase the property for $5.36 million, which would include a cash payment of $2.36 million.
At a meeting on January 30, 2013, Co agreed to sell the property for $5.36 million, but that the publicly filed documents would reflect a sale price of only $3 million. At this meeting, Co accepted $2.36 million in cash.
The tax charge that was filed today concerns a United States Corporation Income Tax Return (Form 1120) that Co filed for his company, Qwik Pack Systems, for tax year 2010. In that filing with the IRS, Co failed to report well over $100,000 in income. This tax charge is not related to the bribery scheme.
“Mr. Co’s intentional omission of more than $112,000 in taxable income – and failure to pay $31,000 in tax to the IRS – was committed for his own private gain and was an insult to honest taxpayers and the citizens of Moreno Valley,” said Joel P. Garland, Acting Special Agent in Charge for IRS - Criminal Investigation, Los Angeles Field Office. “Today’s action is an example of IRS-CI’s vigilance when it comes to enforcing tax laws, particularly when it involves our public officials. IRS-CI, in partnership with our law enforcement partners, is committed to bringing to justice public officials who use their political office to commit crimes.”
At Co’s initial appearance in federal court, which is expected to be in early December, the case will be assigned to a District Judge who will schedule a hearing for Co to formally enter the guilty pleas.
Release No. 13-126
Former Lee's Summit Man Pleads Guilty to $3 Million Ponzi SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Lee’s Summit, Mo., man pleaded guilty in federal court today to defrauding 39 investors in a $3 million Ponzi scheme.
Ronald W. Shepard, 74, formerly of Lee’s Summit, pleaded guilty before U.S. District Judge Gary A. Fenner to mail fraud.
Shepard received approximately $3,188,765 from approximately 39 investors from January 2006 through December 2009. Shepard returned approximately $1,235,853 to the investors, and lost or spent the rest, resulting in a minimum loss to investors of $1,825,883.
Shepard, who prepared tax returns for individuals, discussed their investments and pitched his own companies as investments. Shepard’s company, Safety Solutions USA, LLC, in Lee’s Summit, developed and marketed a trailer hitch called Tow-Safe. A patent request for the trailer hitch safety device was filed, but rejected by the U.S. Patent Office. Shepard also operated a company called The Real Estate in Lee’s Summit.
Shepard claimed that investors would make anywhere from a 15 percent to 100 percent annual return on their investment. He failed to inform potential investors that the state had issued a cease and desist order that barred him from offering or selling any unregistered security. Shepard has never been registered to sell securities in the state of Missouri.
Shepard told investors that their money was used to purchase property in Kansas City, the Lake of the Ozarks and Hawaii. Except for purchasing his own personal residence at the Lake of the Ozarks, however, Shepard did not purchase any real estate. Instead, Shepard used investor funds for personal living expenses, to pay other investors, to pay relatives, in disbursements of cash to himself and in real estate ventures.
Many investors liquidated their Individual Retirement accounts or 401(k) accounts and transferred the proceeds to Shepard for investment. Shepard told investors that if they liquidated retirement funds, thereby incurring penalties, he would refund their initial investment, plus the amount of penalty, plus interest.
Under the terms of today’s plea agreement, Shepard will be sentenced to two years in federal prison without parole, to be served concurrently with the five-year sentence he is currently serving after his supervised release was revoked in another case. Shepard must pay a total of $1,825,883 in restitution to his victims.
This case is being prosecuted by Assistant U.S. Attorney Kate Mahoney. It was investigated by the FBI and the Missouri Division of Securities.Former Background Investigator for Federal Government Sentenced to Six Months in Prison for Making A False StatementRead the Press Release
WASHINGTON – Lindsay Branson III, 58, a former background investigator for the U.S. Office of Personnel Management (OPM), was sentenced today to six months of incarceration on a charge stemming from his falsification of work on background investigations of federal employees and contractors, announced U.S. Attorney Ronald C. Machen Jr. and Patrick E. McFarland, Inspector General for the Office of Personnel Management.
Branson, of Silver Spring, Md., pled guilty in July 2013 in the U.S. District Court for the District of Columbia to making a false statement. He was sentenced by the Honorable Amy Berman Jackson. Upon completion of his prison term, Branson will be placed on three years of supervised release. During that time, he is required to perform 200 hours of community service. In addition, he must pay $159,918 in restitution to the federal government.
According to a statement of offense submitted to the Court, Branson worked for Federal Investigative Services, a part of OPM that does federal background investigations.
Between September 2010 and November 2011, in multiple Reports of Investigations on background investigations, Branson represented that he had interviewed a source or reviewed a record regarding the subject of the background investigation. In fact, he had not conducted the interviews or obtained the records of interest. His reports were utilized and relied upon by the agencies requesting the background investigations to determine whether the subjects were suitable for positions having access to classified information, for positions impacting national security, or for receiving or retaining security clearances.
Branson’s false representations have required Federal Investigative Services to reopen and rework numerous background investigations that were assigned to him during the time period of his falsifications, at an estimated cost of at least $159,918 to the U.S. government.
Federal Investigative Services has a robust integrity assurance program which utilizes a variety of methods to ensure the accuracy of reported information. The falsification of investigative case work by the defendant was detected through the program.
This is one of numerous cases prosecuted by the U.S. Attorney’s Office for the District of Columbia since 2008 involving false representations by background investigators and record checkers working on federal background investigations. In addition to Branson, 16 other background investigators and two record checkers have been convicted of charges.
Federal Investigative Services, through its workforce of approximately 7,600, including 6,100 field investigators, is responsible for conducting background investigations for numerous federal agencies and their contractors, on individuals either employed by or seeking employment with those agencies or contractors. Federal Investigative Services conducted more than 2.3 million investigations during the 2013 fiscal year. More than 700,000 of these investigations involved applicants for access or continued access to classified information.
In performing background investigations, the investigators conduct interviews of individuals who have information about the person who is the subject of the review. In addition, the investigators seek out, obtain, and review documentary evidence, such as employment records, to verify and corroborate information provided by either the subject of the background investigation or by persons interviewed during the investigation. After conducting interviews and obtaining documentary evidence, the investigators prepare a Report of Investigation containing the results of the interviews and document reviews, and electronically submit the material to OPM in Washington, D.C. OPM then provides a copy of the investigative file to the requesting agency, which can use the information to determine an individual’s eligibility for employment or a security clearance.
In announcing the sentence, U.S. Attorney Machen and Inspector General McFarland praised the efforts of Special Agent Christopher Sulhoff, OPM, Office of the Inspector General, and Philip Kroop and David Newcomer, OPM, Federal Investigative Services. They also acknowledged the work of Paralegal Specialist Nicole Wattelet and Legal Assistant Angela Lawrence, as well as Assistant U.S. Attorneys Ellen Chubin Epstein and David A. Last, who investigated and prosecuted this matter.
13-377Florida Man Convicted for Attempted Online Enticement of a MinorRead the Press Release
TALLAHASSEE, FLORIDA – Following a trial in federal court in Tallahassee, a jury found Jose Galdamez, 42, of Tallahassee, Florida, guilty of using the Internet in an attempt to persuade, induce, and entice a minor to engage in sexual activity.
Evidence presented during trial proved that, on April 14, 2013, Galdamez responded to an advertisement entitled “Bored and Home Alone Looking For Some Fun - w4w – (ASK),” which had been posted under the “Casual Encounters” link on Craigslist. Over the next 24 hours, Galdamez engaged in email chats, phone calls, and text messages of a sexual nature with a person he believed to be a 14-year-old girl named Crystal. Subsequently, Galdamez drove to the location where he had arranged to meet Crystal. Once Galdamez arrived at the location, officers arrested him for attempted online enticement of a child.
As a result of the guilty verdict, Galdamez faces a sentence of ten years to life in prison, a fine of up to $250,000, not less than five years and up to a life term of supervised release, and a $100 special monetary assessment.
In announcing the verdict, Pamela C. Marsh, United States Attorney for the Northern District of Florida, credited the success of this prosecution to the joint efforts of the agencies participating in the North Florida ICAC, particularly U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Marshals Service, Volusia County Sheriff’s Office, Florida Department of Law Enforcement, Leon County Sheriff’s Office, and the Tallahassee Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was prosecuted by Assistant United States Attorney Herbert Lindsey.
El Paso, Texas Man Sentenced to Twenty Years in Federal Prison for Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE –Francisco Burciaga, 43, of El Paso, Texas, was sentenced this morning to 20 years in federal prison followed by ten years of supervised release for his heroin trafficking conviction, announced Acting U.S. Attorney Steven C. Yarbrough, Joseph M. Arabit, Special Agent in Charge of the DEA’s El Paso Division, Chief Pete N. Kassetas of the New Mexico State Police and Chief Terry Sisneros of the Raton Police Department.
Burciaga was arrested in June 2008, after officers found 32 pounds of heroin secreted in his vehicle during a routine traffic stop in Colfax County, N.M. In July 2008, he was indicted and charged with possession of heroin with intent to distribute. A trial in Nov. 2010 ended in a mistrial and proceedings in the case were stayed during the pendency of an interlocutory appeal. The retrial of the case concluded on May 31, 2013, when the jury returned a guilty verdict against Burciaga on the sole count of the indictment.
According to the evidence at trial, on June 24, 2008, a New Mexico Motor Transportation Police officer executed a routine traffic stop of a vehicle driven by Burciaga on Interstate 25 just south of Raton, N.M. When the officer approached Burciaga, he provided a Texas driver’s license and documents reflecting that the vehicle was registered to him in Phoenix, Ariz., on June 23, 2008, and insured by him on that same day. After the officer explained the traffic violation he observed, Burciaga admitted the violation and agreed to pay the fine.
While talking with Burciaga, the officer noticed a strong chemical odor coming from the vehicle and an air freshener hanging from the vehicle’s rear-view mirror, which, together with the vehicle’s recent registration, triggered the officer’s suspicions. Accordingly, the officer asked Burciaga if he had anything illegal in the vehicle. Burciaga responded by opening the vehicle’s hatchback and saying, “Wanna take a look.” Shortly thereafter, a New Mexico State Police Officer arrived to assist and noticed fresh tool marks and spray paint on the underside of the vehicle and its back bumper area. The officers then had a narcotics dog inspect the vehicle and the dog reacted to the back bumper area of the vehicle.
When the officers removed the back bumper from Burciaga’s vehicle, they found a hidden compartment containing 24 sealed packages containing a white powdery substance. Subsequent laboratory analysis revealed that the packages contained 14.4 kilograms (32 pounds) of heroin that was 72% pure. The Chief of the Indications and Warnings Section of DEA’s Intelligence Division in Washington, D.C., who testified as an expert, told the jury that the heroin seized from Burciaga was one of the top ten DEA heroin seizures in the United States in 2008 in terms of weight. He also testified that, in Chicago, Ill., where Burciaga intended to deliver the heroin, the conservative retail, or street, value of the heroin in 2008 was at least $2,900,000.
Burciaga faced enhanced penalties in this case because he previously was convicted of a felony drug trafficking crime in a Texas state court in 1996.
This case was investigated by the Albuquerque office of the DEA, the New Mexico Motor Transportation Police, the New Mexico State Police and the Raton Police Department, with assistance from the New Mexico State Police, and was prosecuted by Assistant U.S. Attorneys Jon K. Stanford and C. Paige Messec.
Effingham County Man Sentenced on Gun Related ChargesRead the Press Release
An Effingham County man was sentenced on November 1, 2013, to federal prison on gun related charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Ivan Joe Golladay, 33, of Effingham, IL, was sentenced to 96 months in prison, three years of supervised release following his imprisonment, and fined $200. Golladay had previously pleaded guilty to two counts in a federal indictment. Count 1 charged that on November 9, 2012, in Effingham County, Golladay was a convicted felon in possession of a .22 Caliber Revolver. Count 2 charged that on November 13, 2012, in Effingham County, Golladay was a convicted felon in possession of a 12 gauge shotgun.
The investigation in this case was conducted by the Effingham Police Department and the Bureau of Alcohol, Tobacco, and Firearms.
The case is being handled by Assistant United States Attorney George Norwood.
Eddie Bynum, Sr. Pleads Guilty to Money LaunderingRead the Press Release
Portland, Ore. — Eddie L. Bynum, Sr. (a/k/a “Fast Eddie”), 54, of Portland, Oregon, pled guilty to money laundering today in U.S. District Court. The Internal Revenue Service’s (IRS) Criminal Investigations Division initiated a “sting” money laundering investigation of Bynum after learning from the Federal Bureau of Investigation’s Metro Gang Task Force that Bynum might be laundering money for local gang members through his Vancouver automobile dealerships. Bynum is scheduled to be sentenced by U.S. District Court Judge Marco Hernandez on February 18, 2014.
Bynum pled guilty to one count of money laundering, and admitted that he accepted $34,000 in cash from an IRS undercover agent to purchase a 2005 Maserati, and that the agent told him that the cash came from dealing drugs. Bynum also admitted that he conducted the Maserati sale to conceal the source and nature of the dirty money. Bynum acknowledged he later accepted $50,000 cash from the undercover agent, pursuant to an agreement that Bynum would launder that money by returning the $50,000 to the agent in $5,000 monthly checks from one of his businesses. The government alleged that Fountaine Motors, Manor Highway Auto, Inc., JT’s Barber Shop, and Seeznin’s Sports Bar were among the local businesses Bynum used to launder money.
This case stemmed from an investigation by the Internal Revenue Service, Criminal Investigations. The case is being prosecuted by Assistant U.S. Attorney Stacie Beckerman.
Dollar General Armed Robbers SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Nyneson S. Jeudy, 21, and Jarrett J. Sutton, 22, both of Moultrie, Georgia, were sentenced on Monday, October 28, 2013, in Valdosta, Georgia by Senior United States District Judge Hugh Lawson for armed robbery of the Dollar General, a large multistate retailer, in Coolidge, Georgia. Mr. Jeudy was sentenced to serve one hundred forty-one (141) months imprisonment. Mr. Sutton was sentenced to serve seventy (70) months imprisonment. As part of the sentence, Mr. Jeudy and Mr. Sutton will each pay restitution to the Dollar General in the amount of $2,300.00 and a total of $47.00 to two employees of the store at the time of the robbery.In his plea of guilty, Mr. Jeudy admitted to carrying and pointing a firearm at employees when he entered the Dollar General on March 22, 2010. Although Mr. Sutton admitted to participating in the robbery of the store and the employees, he did not possess a firearm at the time of the robbery. The store’s videotape of the robbery confirmed Mr. Sutton’s statement and exposed that Mr. Jeudy was armed with both a rifle and a handgun.
“This case is another example of the senseless use of a firearm during a crime. The sentences imposed will give both Mr. Jeudy and Mr. Sutton a long time to think about what they did. When you use a gun in a crime, you can expect to spend a long, long time in prison,” said U.S. Attorney Michael Moore.
The case was investigated jointly by the Georgia Bureau of Investigation, the Thomas County Sheriff’s Office and the Coolidge, Georgia Police Department. Assistant United States Attorney Robert McCullers prosecuted the case for the Government.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.