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Friday 6 September 2013
Sheboygan Resident Sentenced to 10 Years in Prison for herion DistributionRead the Press Release
United States Attorney James L. Santelle announced today that United States District Judge Lynn Adelman sentenced Osvaldo Reyes (age: 32) of Sheboygan to ten years in prison for distribution of heroin in Sheboygan and the surrounding areas. Reyes, who pled guilty to these charges, was indicted on March 12, 2013.
According to the plea agreement filed in court, from at least April 1, 2012, through on or about March 12, 2013, a conspiracy involving the defendant existed to distribute heroin in Sheboygan and elsewhere. The conspirators obtained heroin and organized a standardized method of doing business, maintained continuing relationships, and relied upon repeated transactions.
At sentencing Judge Adelman called this an “extensive heroin operation.” Assistant United States Attorney Karine Moreno-Taxman described Reyes as a substantial heroin distributor in the Sheboygan area.
This investigation was successful because of a cooperative effort by the Sheboygan County Metro Drug Enforcement Group, the Manitowoc County Metro Drug Enforcement Group and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Karine Moreno-Taxman.
Shakopee Man Sentenced for Using Other People’s Food StampsRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a 47-year-old Shakopee man was sentenced for using other people’s food stamps. On September 5, 2013, United States District Judge Paul A. Magnuson sentenced Chin Son Kim to three years of probation on one count of food stamp fraud. Kim was charged on April 18, 2013, and pleaded guilty on June 12, 2013. Kim was ordered to pay restitution of $29,816.
In his plea agreement, Kim admitted that between November 2010 and July 2012, he obtained Supplemental Nutrition and Assistance Program (“SNAP”) cards, commonly known as food stamps, from the true recipients of those benefits. To acquire the cards, he waited near a charity facility in St. Paul, as well as at other locations, and then approached people he thought might be in possession of them.
After obtaining a card, Kim would go to cooperating local markets, where he would use the card in an unauthorized manner. Typically, he would present the card to the grocer, who would swipe it through a food-stamp scanner, routinely noting a transaction of approximately $200. Kim would then receive cash, groceries, or store credit in that amount. Afterwards, he would return the card to its rightful owner, providing that person with cash in the amount of approximately half of the transaction total. The loss to the SNAP program because of Kim’s action was approximately $29,816.
Following the sentencing, Assistant Special Agent-in-Charge Robert Wagner of the U.S. Department of Agriculture’s Office of Inspector General, said, “SNAP is the largest program in the domestic hunger safety net, and those who prey on the poor by illegally purchasing SNAP benefits erode the public trust in the program.”
Wagner expressed appreciation to the Ramsey County Sheriff’s Office, the St. Paul Police Department, and U.S. Attorney’s Office for effectively working together to prosecute those whose criminal conduct diverts vital federal nutrition assistance away from needy individuals and families.
Each individual who receives SNAP benefits is issued an electronic benefit transfer (“EBT”) card, which contains a monthly allocated benefit amount that can be used at authorized retailers. The U.S. Department of Agriculture (“USDA”) reimburses those retailers for the benefit amounts redeemed. Only eligible food items may be acquired with food stamps, and some items, such as alcoholic beverages, tobacco products, and cell phone minutes are not eligible. Moreover, food stamps may not be redeemed for cash.
This case was the result of an investigation by the USDA-Office of Inspector General, the Ramsey County Sheriff’s Office, and the St. Paul Police Department. It was prosecuted by Assistant U.S. Attorney David P. Steinkamp.Sex Offender Sentenced in Failure to Register CaseRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Chad S. Williams, 42, of Rochester, N.Y., who was convicted of failing to register as a sex offender, was sentenced to 33 months in prison and six years of supervised release by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that Williams, a sex offender, last updated his sex offender registration in 2009. In July 2009, the defendant left the State of New York to live in the State of Georgia. Between July 2009 and March 2011, Williams failed to register in Georgia and failed to update his registration status in New York.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of the United States Marshals Service, under the direction of United States Marshal Charles Salina.Sentences for September 03 – 05, 2013Read the Press Release
Martin Travis Brown, 44, of Fort Collins, Colorado, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 5, 2013, on one count of conspiracy to possess with intent to distribute, and to distributing between 1.5 kilograms and 5 kilograms of a mixture or substance containing a detectable amount of methamphetamine and two counts of possession with intent to distribute methamphetamine and aiding and abetting. Brown was arrested in Casper, Wyoming. He received 151 months imprisonment, to be followed by five years of supervised, and was ordered to pay a $300.00 special assessment and a $700.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Robert Glenn Davis, 38, of Gillette, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on September 4, 2013, on one count of conspiracy to possess with intent to distribute, and to distribute and one count of distribution of at least 1.5 kilograms of a mixture or substance containing a detectable amount of methamphetamine. Davis was arrested in Rock Springs, Wyoming. He received 135 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $200.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Fern Baker, 71, of Newcastle, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on September 3, 2013, for conspiracy to possess with intent to distribute, and to distributing methadone. Baker was arrested in Newcastle, Wyoming. She received five years probation and was ordered to pay a $100.00 special assessment and restitution in the amount of $10,612.85. This case was investigated by the Wyoming Division of Criminal Investigation.
Cathy Lines, 55, of Newcastle, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on September 3, 2013, for conspiracy to possess with intent to distribute, and to distributing methadone. Lines was arrested in Newcastle, Wyoming. She received 96 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $10,612.85. This case was investigated by the Wyoming Division of Criminal Investigation.
San Jose Man Sentenced to 21 Months for Destroying EvidenceRead the Press Release
SAN JOSE – Randy Daniel Shattuck was sentenced on September 5, 2013 to 21 months in prison for destroying evidence, United States Attorney Melinda Haag announced.
Shattuck pleaded guilty on January 10, 2013. According to the plea agreement, Shattuck admitted that after he had learned of the existence of a criminal investigation into his internet activities, he intentionally destroyed certain files that were stored on his external hard drive, just minutes before the arrival of federal agents to his residence.
Shattuck, 29, of San Jose, was indicted by a federal grand jury on September 26, 2012, and charged with a single count of the destruction of evidence.
“The severity of this sentence should send a strong message of deterrence to anyone considering destroying evidence. This Office will investigate and prosecute persons that obstruct investigations by our partners in federal law enforcement,” said United States Attorney Melinda Haag.
The sentence was handed down by The Honorable D. Lowell Jensen, U.S. Senior District Court Judge, following a guilty plea on the single count of the indictment, violation of 18 U.S.C. 1519. Judge Jensen also imposed a fine of $3,000 and sentenced the defendant to three years of supervised release. The defendant will begin serving the sentence on November 5, 2013.
Timothy J. Lucey is the Assistant United States Attorney who is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the Homeland Security Investigations, Department of Homeland Security.
San Francisco Resident Pleads Guilty to Filing A False Tax ReturnRead the Press Release
SAN FRANCISCO – Richard Chong pleaded guilty today to a charge involving the failure to disclose the existence of foreign bank accounts on his tax returns, United States Attorney Melinda Haag and Internal Revenue Service Criminal Investigation (IRS-CI) Special Agent in Charge José M. Martínez announced.
According to the plea agreement, Richard Chong, of San Francisco, filed U.S. Individual Income Tax Returns in 2005, 2006, and 2007 in which he falsely stated on Schedule B that he had “no” foreign bank accounts. Chong, in fact, had multiple foreign bank accounts, including an account at LGT Bank in the Principality of Liechtenstein. Chong admitted that he did not disclose these accounts to the person preparing his income tax returns although he knew he was required to disclose them to the IRS.
In pleading guilty, Chong agreed to resolve all civil liability for failing to file Reports of Foreign Bank and Financial Accounts, Form TD F 90-22.1, and other foreign information reporting obligations under the United States law, for the tax years 1999 through 2007. He will also pay a 50% penalty with respect to the funds held in the undeclared offshore accounts for the one year with the highest balance in the account for the calendar years 1999 through 2007. He agreed to pay this penalty prior to sentencing.
Chong, who was charged on July 8, 2013, with one count of filing a false tax return in violation of 26 U.S.C. 7206(1), is scheduled to be sentenced on December 13, 2013.
The maximum statutory penalty for each count of filing a false tax return, in violation of Title 26, U.S.C § 7206(1) is three years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Thomas Newman is the Assistant U.S. Attorney who is prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Rehoboth, N.M., Man Pleads Guilty to Methamphetamine Trafficking and Unlawful Possession of a FirearmRead the Press Release
ALBUQUERQUE – MacDavis Bahe, 31, an enrolled member of the Navajo Nation who resides in Rehoboth, N.M., pleaded guilty this morning to a methamphetamine trafficking charge and unlawful possession of a firearm. Under the terms of his plea agreement, Bahe will be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court.
Bahe was indicted in June 2012, and charged with distributing methamphetamine and marijuana in McKinley County, N.M., between Feb. 2012 and May 2012. He also was charged with being a felon in possession of a firearm and possession of an unregistered firearm.
During today’s plea hearing, Bahe admitted that he distributed methamphetamine on Feb. 17, 2012, to an individual who, unbeknownst to him, was an undercover officer. Bahe also admitted that he unlawfully possessed a shotgun on May 1, 2012. Bahe acknowledged that he was prohibited from possessing firearms and ammunition because he previously had been convicted of the following felony offenses in the 11th Judicial District Court for the State of New Mexico (McKinley County): burglary, aggravated fleeing from a law enforcement officer, and being a felon in possession of a firearm or destructive device.
Bahe was arrested on June 4, 2012, and has been in federal custody since that time. Bahe will remain detained pending his sentencing hearing, which has yet to be scheduled. The remaining counts of the indictment will be dismissed after Bahe has been sentenced.
The case was investigated by the Albuquerque office of the FBI and the Middle Rio Grande Valley Narcotics Task Force, and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Red Lake Man Sentenced for Endangering Baby’s HealthRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 33-year-old Red Lake man was sentenced for endangering the health of a baby. United States District Judge Donovan W. Frank sentenced Chad Joseph Sumner to 40 months in prison on one count of child endangerment. Sumner was indicted on January 8, 2013, and pleaded guilty on April 12, 2013.
In his plea agreement, Sumner admitted that on August 17, 2011, while acting as the caretaker for the baby when the mother was temporarily away, the child was injured. As a result of Sumner’s failure to properly care for the child, the infant suffered substantial physical harm, including head trauma and skull fractures.
This case was the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney's Office.Rapid City Man Sentenced for Making False StatementsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of False Statement was sentenced on September 3, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Ray Douglas Red Leaf, age 40, was sentenced to 2 years’ probation, and was ordered to pay $19,470 in restitution to the Social Security Administration and $100 to the Federal Crime Victims’ Fund.
Between March 2009 and October 2011, Red Leaf knowingly made false statements in a Social Security Representative Payee Report, claiming another person resided with him in order to receive that person’s Supplemental Security Income benefits. He pled guilty on April 18, 2013.
This case was investigated by the Office of Inspector General-Social Security Administration. Assistant U.S. Attorney Eric Kelderman prosecuted the case.Prosecutions Continue in Illegal Entry Cases Involving Those with Prior Criminal RecordsRead the Press Release
MINNEAPOLIS -- In the District of Minnesota, court action continued this week in three separate cases that involve foreign nationals who entered the United States illegally after being deported subsequent to criminal convictions. In each case, the individual was charged with one count of illegal re-entry after removal.
In the first case, Hector Rios-Guzman, age 27, pleaded guilty yesterday in federal court. He was indicted on July 16, 2013, and entered his plea before U.S. District Judge John R. Tunheim. In his plea agreement, Rios-Guzman, also known as Hector Rios, admitted that on May 15, 2013, authorities found him in the U.S. illegally after he had been previously deported to Mexico. His deportation followed a 2004 Hennepin County conviction for terroristic threats. On May 15, 2013, Rios-Guzman was arrested following a traffic stop in Bloomington. According to a law enforcement affidavit filed in the case, Rios-Guzman fled the scene on foot before he was arrested. Rios-Guzman also has a previous federal court conviction in the District of Minnesota for illegal re-entry.For his crime, Rios-Guzman faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Judge Tunheim will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (“ICE ERO”). It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.
In the second case, Alfredo Rios-Guzman, age 35, also pleaded guilty yesterday in federal court. He was indicted on June 18, 2013, and entered his plea before U.S. District Judge Donovan W. Frank in St. Paul. In his plea agreement, Rios-Guzman admitted that on May 7, 2013, authorities found him in the U.S. illegally after he had been previously deported to Mexico. His deportation followed a 2007 Hennepin County conviction for assault in the second degree involving a dangerous weapon. Rios-Guzman was identified as an alien with a criminal record and was arrested on May 17, 2013, after a traffic stop near his Bloomington residence.
For his crime, Rios-Guzman faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Judge Frank will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by ICE ERO. It is being prosecuted by Assistant U.S. Attorney Sarah E. Hudleston.
In the third case, U.S. District Court Chief Judge Michael J. Davis, on September 3, 2013, sentenced Noe Castro-Coj, age 41, to 30 months in federal prison, followed by deportation. Castro-Coj was indicted on March 11, 2013, and pleaded guilty on May 7, 2013. In his plea agreement, Castro-Coj admitted that on February 5, 2013, he was found in the U.S. after having been deported to Guatemala in 2003, after a 2000 Kansas conviction for kidnapping. On February 5, 2013, Castro-Coj was arrested in Steele County for violating an order for protection. On February 7, 2013, ICE was notified that he was in jail.
This case was the result of an investigation by the Steele County Sheriff’s Office and ICE ERO. It was prosecuted by Assistant U.S. Attorney Andrew Dunne.Pleasanton Woman Pleads Guilty to Filing False Claim with the IRSRead the Press Release
OAKLAND – Denise LaShawn Reed, also known as Brooke Nicholson, Lauren Roberts, Denise Berry, Savana Jones, and Neyce Roberts, pleaded guilty to a charge related to a false tax refund scheme, United States Attorney Melinda Haag and Internal Revenue Service-Criminal Investigation Special Agent in Charge José M. Martinez announced.
According to the plea agreement, from January 2009 through February 2010, Reed, 45, of Pleasanton, California, filed 14 false and fraudulent federal income tax returns with the IRS. These claims were all filed as Forms 1040, U.S. Individual Income Tax Returns. The total amount of the false claims was $94,700. Reed knowingly prepared and electronically filed the returns with the IRS. The claims listed on the returns were all fictitious, with the exception of the individual’s identities. As part of the scheme, some of the returns reported that the taxpayer earned income as part of a business that they operated when Reed knew the taxpayer did not own or operate a business. The fourteen false tax returns fraudulently reported that a refund was due. Reed admitted to receiving the tax refunds for 13 of the false claims.
Reed was charged on December 18, 2012, with 14 counts of filing false claims. She pleaded guilty to one count.
The maximum penalty for filing a false claim, in violation of Title 18, United States 287, is five years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
In response to these types of cases, the Justice Department’s Tax Division issued a new directive to further the efforts of the Tax Division and help U.S. Attorneys’ Offices respond quickly and effectively to the challenges in stolen identity refund fraud (SIRF) cases. To further this goal, Tax Division Directive 144, which took effect on Oct. 1, 2012, was issued to streamline the process for prosecuting these offenses.
Cynthia Stier is the Assistant United States Attorney who is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
(Reed Indictment )
Plano, Texas, Man Sentenced to 63 Months in Federal Prison in Corporate Hacking CaseRead the Press Release
DALLAS — Michael Musacchio, 62, of Plano, Texas, was sentenced late yesterday by U.S. District Judge Jorge A. Solis to serve a total of 63 months in federal prison, following his conviction at trial in March 2013 for conspiring to hack into his former employer’s computer network. The issue of restitution is still under consideration by the court. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Musacchio was convicted on one felony count of conspiracy to make unauthorized access to a protected computer (hacking) and two substantive felony counts of hacking. He will remain on bond until he is required to surrender to the Bureau of Prisons on a date to be determined.
According to the evidence submitted at trial, from 2000 to September 2004, Musacchio was the president of Exel Transportation Services, a third party logistics or intermodal transportation company that facilitated links between shippers and common carriers in the manufacturing, retail and consumer industries. In 2004, Musacchio left Exel to form a competing company, Total Transportation Services, where he was the original president and CEO. Two other former Exel employees from the Exel IT Department, Joseph Roy Brown and John Michael Kelly, also went to work at Musacchio’s new company. Trial testimony and exhibits established that between 2004 and 2006, Musacchio and Brown, assisted by Kelly engaged in a scheme to hack into Exel’s computer system for the purpose of conducting corporate espionage. Through their repeated unauthorized accesses into Exel’s email accounts, co-conspirators Musacchio and Brown were able to obtain Exel’s confidential and proprietary business information and use it to benefit their new employer and themselves as investors.
A federal grand jury returned an indictment against the three men on Nov. 2, 2010. Brown and Kelly entered guilty pleas on May 19, 2011, and Aug. 2, 2012, respectively, and are scheduled to be sentenced on September 25, 2013.
This was the first investigation of hacking for the purpose of corporate espionage that was conducted by the Justice Department’s Computer Crime and Intellectual Property (CCIP) Section, the U.S. Attorney’s Office for the Northern District of Texas and the FBI.
The FBI Dallas Field Office was in charge of the investigation. Deputy Criminal Chief Assistant U.S. Attorney Linda Groves and Assistant U.S. Attorney Candina Heath, of the U.S. Attorney’s Office in the Northern District of Texas, and Trial Attorney Rick Green, of the Criminal Division’s CCIP Section, prosecuted.
Owner of Bluegrass Women’s Healthcare in Elizabethtown Guilty of Misbranding and Bluegrass Women’s Healthcare Guilty of SmugglingRead the Press Release
– Agreed to pay restitution in the amount of $50,663.31
LOUISVILLE, Ky. – The owner of Bluegrass Women’s Healthcare, located in Elizabethtown, Kentucky pleaded guilty today, in United States District Court, before U.S. Magistrate Judge James Moyer, to a single charge of misbranding, the corporation pleaded guilty to smuggling, and agreed to pay restitution in the amount of $50,663.31 to victims, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Canh Jeff Vo, age 45, of Louisville, Kentucky was the owner, supervising physician, and president at Bluegrass Women’s Healthcare between March 2008 and September 2009 when the violations occurred. Vo offered gynecological and obstetric services to women at Bluegrass Women’s Healthcare, including providing forms of birth control. According to the plea agreement, between March 2008 and September 2009, Vo, purchased and inserted into patients, foreign, non-FDA approved (levonorgesteral-releasing intrauterine device). These intrauterine devices or IUDs, were misbranded in that their labeling was not in the English language; and their labeling did not bear adequate directions for use. Vo pleaded guilty to the misdemeanor charge of misbranding and agreed to pay jointly and severally with Bluegrass Women’s Healthcare, restitution to victims in the amount of $50,663.31.
Also, between March 2008 and September 2009, Bluegrass Women’s Healthcare received, brought, and imported into the United States, IUDs, knowing that these were misbranded and unlawfully introduced into interstate commerce from various countries, including from Canada. Defendant VO, as president of Bluegrass Women’s Healthcare pleaded guilty, on behalf of the corporation, to the felony charge of smuggling and agreed to pay a $25,000 fine.
If convicted at trial, Vo faced a maximum of 1 year in prison, a maximum fine of $1,000 and up to 1 year of supervised release. The corporation faced a maximum fine of $500,000 and up to three years of supervised release.
Vo is scheduled for sentencing before U.S. District Judge John G. Heyburn II, on December 17, 2013, at 1:30 pm, in Louisville. At the time of sentencing, the United States has agreed to drop charges in the superseding indictment.
This case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb, and is being investigated by the United States Food and Drug Administration (FDA) Office of Criminal Investigations, the Federal Bureau of Investigation (FBI), and Kentucky Office of the Attorney General Office of Medicaid Fraud and Abuse Control.
New York City Police Officer and Customs and Border Protection Officer Arrested for International Arms Trafficking; Brother in Philippines Also ChargedRead the Press Release
Federal agents have arrested REX MARALIT, a New York City Police Officer assigned to police headquarters in Manhattan, and his brother WILFREDO MARALIT, a Customs and Border Protection Officer assigned to Los Angeles International Airport, pursuant to arrest warrants issued in the Eastern District of New York. These two men, along with a third brother, ARIEL MARALIT, are charged with conspiring to violate the Arms Export Control Act by exporting high-powered weapons from the United States to the Philippines without a license from the U.S. State Department, and with conspiring to engage in unlicensed firearms dealing.1 REX MARALIT will make his initial appearance at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York at 11:00 a.m. in courtroom 2A. WILFREDO MARALIT will appear at the United States Courthouse, 411 West Fourth Street, Santa Ana, California at 2:00 p.m. in Room 1053, and is expected to be removed to the Eastern District of New York to face the charges. The government is coordinating with foreign authorities regarding the apprehension of ARIEL MARALIT.
The arrests were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI), New York; Craig W. Rupert, Special Agent-in-Charge of the Defense Criminal Investigative Service (DCIS); Joseph Anarumo, Jr., Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division; and Raymond W. Kelly, Commissioner, New York City Police Department (NYPD).
According to the complaint, between January 2009 and March 2013, the defendants engaged in a scheme to smuggle high-powered assault rifles, sniper rifles, pistols and firearm accessories from the United States to the Philippines, where they were sold to overseas customers. ARIEL MARALIT, who resides in the Philippines, identified customers and sought the assistance of his brothers, both American law enforcement officers, to purchase and ship the weapons for resale overseas. In response to customer orders from the Philippines, the defendants located weapons advertised on firearms-brokering websites and made arrangements to purchase the guns through dealers in the United States. They then disassembled the weapons and smuggled them out of the United States in disguised shipments.
According to the complaint, none of the defendants obtained export licenses or federal firearms licenses in connection with the weapons they sold. Instead, they used their knowledge of firearms and their status as law enforcement officers to engage in an illegal international arms trafficking business. On several occasions, the defendants used their law enforcement credentials to obtain discounts on weapons from U.S.-based gun dealers. For example, in an email dated June 21, 2012, REX MARALIT asked a U.S.-based gun dealer whether the dealer had a Special Operations Combat Assault Rifle (“SCAR”) in stock. Upon learning that the dealer had such a weapon available, REX MARALIT requested that the dealer hold the high-powered assault rifle until the following Monday, adding, “One other question do you give discounts to LEO, I am an active PO with the NYPD, please advise.” “LEO” is a common abbreviation for “Law Enforcement Officer,” and “PO” refers to “Police Officer.”
The powerful and dangerous firearms that the defendants illegally exported and sold include the Barrett M82A1 .50 caliber semi-automatic rifle, the SCAR, and the FN Herstal 5.7mm semi-automatic pistol. For example, the Barrett M82A1 .50 caliber semi-automatic rifle is a long-range, weapon capable of penetrating body armor, exterior walls of buildings, and even aircraft. The Barrett rifle is favored by specialized military forces due to its extraordinary power and range. The SCAR is a military rifle designed in 2004 at the request of the United States Special Operations Command for a new family of assault rifles to be used by U.S. Special Forces. The FN Herstal 5.7mm semi-automatic pistol is a high-capacity, battlefield weapon capable of firing a projectile that can penetrate body armor.
The Arms Export Control Act requires exporters of firearms to first obtain the approval of the United States State Department before shipping weapons overseas. The United States Munitions List requires export licenses for firearms such as the military-style assault rifles, sniper rifles, and semi-automatic handguns allegedly exported by the defendants. Similarly, dealing in firearms is regulated by the ATF, which requires gun dealers to first obtain a federal firearms license before engaging in such a business.
“As alleged, rather than upholding and enforcing the law as they had sworn to do, these defendants made international gunrunning a family business. The brothers used their knowledge of the law to circumvent it, and sent dangerous weapons overseas without regard for the ultimate destination or targets,” stated U.S. Attorney Lynch. “Criminal conduct by police officers, federal agents, and their confederates cannot be tolerated and will be met with the full force of the law.” Ms. Lynch expressed her grateful appreciation to HSI, DCIS, ATF and the NYPD’s Internal Affairs Bureau, which worked closely together to investigate the case, and to the U.S. Attorney’s Office for the Central District of California, and the U.S. Attorney’s Office for the District of New Jersey for their assistance.
“The defendants are alleged to have illegally exported some of the world’s most powerful firearms with complete disregard as to who the end user would be,” said James T. Hayes Jr., Special Agent-in-Charge of HSI New York. “HSI and our law enforcement partners both locally and around the globe are committed to upholding the exportation laws of the United States to ensure that these deadly weapons do not end up in the wrong hands.”
Special Agent-in-Charge Rupert stated, “As alleged, the trafficking in weapons from the U.S. to foreign entities in violation of U.S. law is a wholly unacceptable crime, but when committed by trusted civil servants charged with public safety, the crime is even more deplorable. DCIS, the law enforcement arm of the Office of the Inspector General, Department of Defense, is dedicated to preventing the exportation of controlled U.S. military technology and to exposing U.S. public servants who violate their oath and the public trust. The DCIS New York Resident Agency and our partner agencies are commended for their continuing dedication to this pursuit.”
Special Agent-in-Charge Anarumo stated, “The alleged criminal acts carried out by these defendants, including two law enforcement officers, are reprehensible and inexcusable. We must not allow the public trust and confidence in those sworn to protect and serve our communities to be compromised. By allegedly misusing their positions as sworn officers of the law in an ill-conceived scheme to illegally acquire and traffic firearms, now, the sad irony is that the laws once enforced by these defendants will be the very same laws used to prosecute them.”
“The vast majority of police officers do outstanding work to protect New York City and a case like this is disheartening to the entire department,” Commissioner Kelly said. “The experienced personnel assigned to our Internal Affairs Bureau engaged in an in-depth investigation and worked closely with all of the outside agencies involved.”
At sentencing, the defendants face up to 5 years in prison on each charge, forfeiture, and a fine of up to $250,000.
The government’s case is being prosecuted by Assistant United States Attorneys Seth DuCharme and Sam Nitze, with assistance from Trial Attorney David Recker of the Department of Justice Counterespionage Section.
The Defendants:
ARIEL MARALIT
The Philippines
Age: 43REX G. MARALIT
Lawrenceville, New Jersey
Age: 44WILFREDO MARALIT
Garden Grove, California
Age: 48_____________________________
1 The charges contained in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Maralit Charging Documents and Exhibits:
Maralit.Complaint & Affidavit.pdf
Maralit.Detention letter.pdf
Maralit.Exhibits to Detention Letter.pdfNew Iberia Resident Sentenced for FEMA Theft SchemeRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Valerie Benjamin, 49, of New Iberia, La., was sentenced by U.S. District Court Judge Richard T. Haik to 18 months in prison and three years of supervised release for conspiring to defraud the Federal Emergency Management Agency (FEMA) out of more than $24,000 dollars in false hurricane damage claims. She was ordered to pay $24,960 in restitution to FEMA for the losses incurred under the scheme. Valerie Benjamin pleaded guilty April 16, 2013.
According to the evidence presented at the guilty plea, Valerie Benjamin conspired with Jacqueline Benjamin and Pamela Alexander, also of New Iberia, to steal money from FEMA. Following hurricanes Katrina and Rita in 2005 and Gustav and Ike in 2008, Valerie Benjamin submitted applications to FEMA seeking disaster assistance and emergency housing assistance, claiming she was required to evacuate her residence because of storm damage. The investigation revealed that she never moved from her home, and it only sustained minor storm damage. To facilitate the scheme Valerie Benjamin provided personal information such as her address, Social Security Number, date of birth and phone number to Pamela Alexander and Jacqueline Benjamin who filed fictitious landlord statements, rental agreements, rent receipts and other documents to make it appear that Valerie Benjamin legitimately qualified for the assistance.
Pamela Alexander pleaded guilty December 18, 2012 and on May 13, 2013 was sentenced to serve 10 months in prison and three years of supervised release. Alexander was also ordered to pay $15,280 in restitution. Jacqueline Benjamin pleaded guilty March 14, 2013 and was sentenced June 12, 2013 to serve three years of probation. She was also ordered to pay restitution.
“The defendants in this case took advantage of a program designed to help those in need and provide money to victims of natural disasters,” Finley stated. “Their actions put an unnecessary financial burden on an agency tasked with the huge responsibility of responding to the aftermath of hurricanes. This office and our judicial partners will continue to prosecute these types of cases to make sure that the money is not diverted to frauds like these defendants.”
The Federal Emergency Management Agency conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
Nashville Musician Sentenced to 210 Months in Federal Prison for Trying to Molest Seven-Year-Old GirlRead the Press Release
Banjo Player Arrested While in Dallas to Perform With County Band
DALLAS — Abraham Eugene Spear, 31, of Nashville, Tennessee, was sentenced this morning by Chief U.S. District Judge Sidney A. Fitzwater to 210 months in federal prison, following his guilty plea in February 2013 to one count of attempted enticement of a minor. He has been in custody since his arrest on September 21, 2012, in Dallas, on a related federal criminal complaint. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, approximately one month before he was to be in Dallas to perform at a local country music establishment, Spear sent a chat request to an undercover officer who was posing online as a “mom of curious girls.” He requested the “mom” send him photos of the girls and later asked the “mom,” if she “still need[s] a teacher when I’m down there?”
Spear admitted that over the course of the next few weeks he communicated, via the internet and cell phone, with the undercover officer, who he thought was a mother of two girls, ages seven and nine. During these communications, many of which were sexual in nature, he persuaded the “mother” to allow him to meet her two girls to engage in different sexual acts with him. On September 20, 2012, Spear traveled from Tennessee to Dallas to perform with a band at a local bar and he agreed to meet the “mom” at a restaurant in Dallas. After he was positively identified, Spear was arrested by FBI agents.
Spear also acknowledged that he had engaged in sexually explicit communications with other mothers of minor girls, including one where he offered to pay $200 to engage in sexual acts with one mother’s minor daughter.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
Multiple Defendants Indicted on Drug Trafficking ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark R. Trouville, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (ICE-HSI), announce the indictment of several individuals for their alleged participation in a drug trafficking conspiracy. The defendants were arrested on September 4, 2013 and made their initial appearances yesterday in federal court.
Charged in the eight-count Indictment are the following individuals:
Jose Alberto Ontivero Monte de Oca, aka “Pariente,” aka “El Viejo,” aka “Papito,” 54, of Hialeah, Florida;
Pedro Farach, 45, of Hialeah, Florida;
Jaime Maldonado Ramos, aka “Oggie,” 46, of Homestead, Florida;
Jose Alfredo Villarreal, aka “Alfredito,” 40, of Naples, Florida;
Roberto Perez, aka “Rodo,” 46, of Pembroke Pines, Florida;
Juan Enrique Martinez, 50, of Miami, Florida;
Alberto Arregoitia Lorenzo, aka “Lorenzo Arregoitia,” 61, of Miami, Florida;
Miguel Angel Desdin, aka “Miguelon,” 59, of Hialeah, Florida;
Vladimir Mir-Medina, aka “Vladimir Medina,” aka “Vladimir Mir,” 50, of Miami, Florida;
Miguel Cruz, 49, of Hialeah, Florida;
Manuel Bautista Alvarez, 53, of Miami, Florida;
Hernan Rodriguez Alfaro, aka “Iran,” 40, of Cutler Bay, Florida; and
Rafael Luis Ramos Lopez, aka “Lou,” 46, of Miami, Florida.The indictment, filed on August 23, 2013, and unsealed yesterday, charges the defendants with conspiracy to possess with intent to distribute over five kilograms of cocaine and distribution and/or possession with intent to distribute cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 846. If convicted, the defendants each face a mandatory minimum sentence of 10 years in prison and a possible statutory maximum sentence of life. Jaime Maldonado Ramos, who is also charged with firearms offenses in violation of Title 18, United States Code, Sections 922(g)(1) and 924(c), faces an additional mandatory minimum sentence of five years in prison and a possible statutory maximum sentence of life.
This case is a result of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Ferrer commended the investigative efforts of the DEA, ATF and ICE-HSI. Mr. Ferrer also commended the U.S. Marshals Service, the Miami-Dade Police Department, the Coral Gables Police Department, the Hialeah Police Department, the Homestead Police Department and the West Miami Police Department for their assistance in this investigation. The case is being prosecuted by Assistant U.S. Attorney Elisa Castrolugo.
An indictment is only an accusation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
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.
Memphis Man Sentenced to 33 Months in Prison for Tax FraudRead the Press Release
Memphis, TN – Terry Green, 60, of Memphis, TN, was sentenced yesterday by U.S. District Judge John T. Fowlkes to 33 months in prison for tax fraud, announced U.S. Attorney Edward L. Stanton III.
According to facts revealed in the indictment and during the sentencing hearing, from 2005 to 2009, Green and his associate, Herman Shaw, ran several tax preparation businesses in Memphis (Computax and Shaw's Tax Express). Through these businesses, Green and Shaw routinely filed false federal income tax returns for their clients and generated fees for their tax businesses as a result. The returns falsely reflected losses and expenses arising from fictitious home-based businesses, such as cutting hair and landscaping. This would inflate the refund amount for the defendants' clients.
As a result of the scheme, numerous false returns were approved by the IRS, resulting in over $400,000 of loss to the United States Government. In June, Shaw, 33, of Cordova, TN, was sentenced to 26 months in prison. Both defendants were ordered to pay restitution in the amount of $404,078.
This case was investigated by IRS-CID and was prosecuted by Assistant United States Attorney Stephen Hall on behalf of the government.Martinsburg Residents Convicted of Heroin DistributionRead the Press Release
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MARTINSBURG, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II
announced that two Martinsburg residents were convicted for selling heroin.BENJAMIN CHAVIS, II, age 54, and CHARLOTTE JENKINS SMITH, age 39 of Martinsburg entered pleas of guilty to “Distribution of Heroin” in the Berkeley County area. CHAVIS and SMITH, who are currently free on bond pending sentencing, face up to 20 years imprisonment.
These cases were prosecuted by Assistant United States Attorneys Jarod J. Douglas and Robert H. McWilliams, Jr. and were investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
In a separate case, Ihlenfeld stated that NIKKI RENE ELLISON, age 25, of Martinsburg, entered a plea of guilty to “False Representation in Application for a United States Passport.” ELLISON, who is free on bond pending sentencing, faces up to 10 years imprisonment.
This case was prosecuted by Assistant United States Attorney Jarod J. Douglas and investigated by the United States Department of State, Diplomatic Services.
Marlboro Man Convicted of Defrauding AirlinesRead the Press Release
BOSTON – A Marlboro man pleaded guilty today to charges stemming from his scheme to defraud various airlines.
Pedro Igor Duarte, 28 pleaded guilty to three counts of mail fraud.
Beginning October 2007 and continuing through April 2009, Duarte purchased airline tickets and flew on various airlines, including Continental Airlines, American Airlines, and Air Tran Airways (now Southwest Airlines), for the purpose of submitting, and obtaining payment on, lost baggage claims, when in fact he had not lost any baggage on those flights.
Duarte would purchase an airline ticket and prior to the flight would check his baggage with the airline. Upon arrival at his destination airport, Duarte would pick up his checked baggage, but then would submit a lost baggage claim form to the airline, falsely stating that the airline had lost his baggage. Duarte would alter slightly the spelling of his name on the baggage claim form so that the airline would not know that the same person was filing numerous lost baggage claims within a short time period. Duarte would also provide a Massachusetts address or, alternatively, provide an address outside of Massachusetts, but would later contact the airline and change his address to a Massachusetts location. In support of his lost baggage claim, Duarte would provide the airline with purchase receipts purporting to document the value of his lost baggage. Upon receipt of the necessary information from Duarte, the airline would mail him a check to compensate for the value of his purportedly lost baggage.
Duarte faces a maximum term of 20 years in prison, three years of supervised release, and a $250,000 fine. As part of the plea agreement, Duarte will repay the airlines $28,210 in restitution. Sentencing is scheduled for December 6, 2013.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Anthony DiPaolo, Chief of the Investigations of the Massachusetts Insurance Fraud Bureau, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Maxim Grinberg of Ortiz’s Major Crimes Unit.
Man Sentenced to 50 Years in Prison for Production of Child PornographyRead the Press Release
SAN JUAN, P.R. - Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico, announced today that United States District Judge Carmen C. Cerezo sentenced 42 year old Luis Alberto Morales-Badillo to serve a term of imprisonment of 50 years imprisonment followed 15 years of supervised release, to be served consecutively to the 15 year imprisonment term imposed for additional sexual aggression charges against minors. On November 16, 2012, Morales-Badillo pled guilty to five counts of production of child pornography and one count of possession of child pornography, following an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
In May, 2012, the defendant was charged for production and possession of child pornography. The evidence in this case revealed that during an eleven year period, from 1999 to 2010, the defendant sexually abused and/or engaged in illicit sexually explicit conduct with five different female minors and documented his sexual abuse by making visual depictions of such conduct from 2003-2010. From 1999-2004 he abused a female minor while she was 8-12 years old; from 2005-2008 he sexually abused two female minor siblings while they were 4-8 and 9-12 years old respectively; from 2007-2008 he exploited a female minor while she was 12-13 years old; and in 2010 he took advantage and exploited an 8 year old female minor. Such evidence was discovered during a search warrant execution by Homeland Security Investigations Agents wherein a digital camera and a laptop computer was seized in August, 2011.
The defendant has also been convicted at the state level for sexually abusing two additional female minor victims during the time period of 1995-1999.
The defendant exhibited a pattern of sexual abuse against innocent female minors until he was arrested in 2011. Luis Morales Badillo caused substantial lifetime harm to his victims.
“Justice was done today. This sentence should serve to reassure the public that we are paying close attention to the well-being of our children, and that we will spare no expense to take child predators off the streets,” said US Attorney Rosa Emilia Rodríguez-Vélez. “All child sexual predators will be held accountable for the unspeakable crimes they commit and the harm they cause to their victims and their families.”
Project Safe Childhood is an initiative of the Department of Justice aimed at preventing the abuse and exploitation of children by the use of digital cameras, computers and other digital and electronic media.
The criminal prosecution was handled by Assistant U.S. Attorney Jenifer Y. Hernàndez and investigated by ICE agents.
Man Claiming to Be Son of the President of the Congo Pleads Guilty to Defrauding Victims Out of $1.6 MillionRead the Press Release
SAN FRANCISCO – Blessed Marvelous Herve pleaded guilty in federal court in San Francisco today to wire fraud, United States Attorney Melinda Haag announced.
In pleading guilty, Herve admitted that from 2006 through 2012, he devised and executed a scheme to defraud victims out of approximately $1.6 million through a series of false and fraudulent statements, representations, and promises. Herve admitted that he falsely represented to victims that his father was the President of the Congo and a multi-billionaire.
Herve falsely represented that the United States government had recently seized more than $43 million of his money, and as part of his scheme, he sought the victim’s financial assistance in order to prevail in a federal court case to gain access to the funds. Herve admitted to signing four promissory notes in which he promised to pay one victim bonus sums of $500,000 and $1 million in exchange for the victim’s financial support of Herve’s purported quest to obtain the $43 million that the government had supposedly seized.
Herve also admitted that he falsely represented to victims that because of his federal court case, he was in federal prison from 2009 through 2012. During this time, Herve fraudulently solicited funds from a second victim. Herve promised this victim full repayment of her money plus a bonus of $1 million and a luxury car upon the completion of his federal case and the release of his seized funds. On or about October 2012, Herve solicited and received $47,000 from the second victim. He falsely claimed that he needed the funds to pay the Internal Revenue Service to satisfy the final judgment entered against him, and that this final payment of $47,000 would result in the release of his seized millions.
Herve, 41, of San Francisco, was charged by Criminal Complaint and arrested on April 24, 2013. He has been in custody since his arrest. He was indicted by a federal grand jury on May 7, 2013. Herve was charged with one count of wire fraud in violation of 18 U.S.C § 1343, to which he pleaded guilty under a plea agreement.
Herve’s sentencing hearing is scheduled for November 22, 2013, before The Honorable Jon S. Tigar, U.S. District Court Judge, in San Francisco. The maximum statutory penalty for wire fraud, in violation of 18 U.S.C § 1343, is 20 years in prison and a fine of $250,000. In his plea agreement, Herve agreed to pay restitution to the victims in the amount of approximately $1.7 million. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Hallie Hoffman is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elizabeth Garcia, Bridget Kilkenny, and Muffy Mallory. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the United States Department of Homeland Security.
Man Arrested in Traffic Stop in Carson County, with 100 Pounds of Methamphetamine Hidden in A Recreational Vehicle, Sentenced to 10 Years in Federal PrisonRead the Press Release
AMARILLO, Texas — A California man, who had 100 pounds of methamphetamine hidden in the recreational vehicle he was driving, was sentenced yesterday in federal court in Amarillo, Texas. Felix Lopez Vasquez, 61, of Perris, California, was sentenced by U.S. District Judge Mary Lou Robinson to 10 Years in Federal Prison. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement.
Vasquez was arrested by a Texas Department of Safety (DPS) Trooper on Interstate 40 in Carson County, Texas, on May 13, 2013. The Trooper had stopped the vehicle, driven and owned by Vasquez, after observing a traffic violation.
Because the Trooper noticed that Vasquez seemed unusually nervous, as well as noting other suspicious circumstances, he asked Vasquez for consent to search the vehicle. Vasquez consented and the Trooper located 45 bundles of methamphetamine, with a gross weight of 100 pounds, located in a storage area above the driver and passenger seats.
The investigation was conducted by the Drug Enforcement Administration and the DPS. Assistant U.S. Attorney Vicki Lamberson of the U.S. Attorney’s Office in Amarillo, and Assistant U.S. Attorney Jeffrey Haag of the U.S. Attorney’s Office in Lubbock, Texas, prosecuted.
Lower Brule Man Charged with Assaulting, Resisting and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury.
Cody Crazy Bull, age 22, was indicted on August 21, 2013, for Assaulting, Resisting and Impeding a Federal Officer. Crazy Bull appeared before U.S. Magistrate Judge Mark A. Moreno on September 4, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, an additional 2 years of supervised release upon revocation, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Crazy Bull is presumed innocent until and unless proven guilty.
The Indictment alleges that on July 20, 2013, Crazy Bull interfered with a federal law enforcement officer by using a deadly and dangerous weapon while the officer was engaged in the performance of his official duties.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Crazy Bull was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.Lower Brule Man Charged with Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury.
Colin Colombe, age 39, was indicted on August 21, 2013, for Assault with a Dangerous Weapon. Colombe appeared before U.S. Magistrate Judge Mark A. Moreno on September 4, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, an additional 2 years of supervised release upon revocation, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Colombe is presumed innocent until and unless proven guilty.
The Indictment alleges that on June 25, 2013, Colombe assaulted two individuals by hitting and kicking them with shod feet with intent to do bodily harm.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Colombe was released on bond pending trial which has not been set.Local Man Indicted for Possessing and Producing Child Pornography Involving A Minor Under Age TwoRead the Press Release
DALLAS — James Brian Rivers, 23, of Dallas, who remains in custody following his arrest earlier this summer on a federal complaint alleging that he used a prepubescent child to produce child pornography, has been indicted by a federal grand jury on one count of production of child pornography and one count of possession of prepubescent child pornography. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on June 30, 2013, Rivers left his cellphone at a neighbor’s home. The neighbor looked through the cellphone and observed multiple images of child pornography and called 911. When officers with the Dallas Police Department arrived at the residence, they seized the cell phone obtained a search warrant for the phone. A forensic review of the phone revealed multiple images and one video depicting child pornography involving a prepubescent child.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the production count carries a maximum statutory penalty of not less than 15 years or more than 30 years in federal prison and the possession count carries a maximum statutory penalty of 20 years in federal prison. Each count of conviction also carries a maximum statutory fine of $250,000 and up to a lifetime of supervised release.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the FBI and the Dallas Police Department. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Legal Permanent Resident Admits to Attempting to Smuggle More Than $2 MillionRead the Press Release
LAREDO, Texas – Octavio Orizaba, 38, a legal permanent resident from Illinois, has entered a guilty plea to attempting to smuggle more than $2 million to Mexico, announced United States Attorney Kenneth Magidson. This was the largest unreported currency seizure that has been intercepted through Laredo thus far this year.
On June 30, 2013, Orizaba attempted to exit the United States from Laredo with his wife and two children. At that time, he provided a negative declaration as to whether he was transporting weapons, ammunition or currency over the sum of $10,000 into Mexico. However, further inspection resulted in the discovery of 144 plastic-wrapped, vacuum-sealed bundles, which were concealed in the sofa and futon he was hauling in the bed of his pick-up truck. Specifically, 47 bundles were discovered in the sofa, while 97 were found in the futon. The hidden currency totaled $2,147,985.
Today, he acknowledged he concealed the currency and failed to report it to authorities. He further admitted he was hired by someone in the Illinois area to take the money to Guanajuato, Mexico, and expected to be paid for doing so.
Individuals are permitted to carry any amount of currency or monetary instruments into or out of the U. S. However, if the quantity is more than $10,000, they are required to report it to Customs and Border Protection (CBP) officer. “Money” means monetary instruments and includes U.S. or foreign coins currently in circulation, currency, traveler’s checks in any form, money orders and negotiable instruments or investment securities in bearer form. Failure to declare may result in seizure of the currency and/or arrest.
U.S. District Judge Diana Saldana will sent sentencing at a later date, at which time Orizaba is facing up to five years in federal prison and a maximum $250,000 fine. The United States is also seeking forfeiture of the currency seized.
The case was investigated by CBP and Homeland Security Investigations and is being prosecutes by Assistant United States Attorney Suntrease Williams.
Laurel Drug Dealer Exiled to over 12 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Joevaughn Butler, age 33, of Laurel, Maryland, today to 152 months in prison followed by five years of supervised release for possession with intent to distribute cocaine, heroin and crack cocaine. Judge Bredar enhanced Butler’s sentence upon finding that he is a career offender/ armed career criminal based on three previous drug convictions. Judge Bredar also ordered that Butler forfeit $235,499 in cash and two 9 millimeter handguns recovered during a search of his residence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Chief Cathy L. Lanier of the Metropolitan Police Department.
According to Butler’s plea agreement, Butler was arrested on September 23, 2011, shortly after leaving an apartment in the Laurel area of Anne Arundel County, Maryland. Butler was wanted on two outstanding arrest warrants issued by Washington, D.C. Superior Court. Butler was searched and law enforcement recovered: 52 ziplock baggies of heroin and a larger plastic bag containing additional heroin; 14 pink ziplock baggies of crack cocaine and a larger plastic bag containing additional crack cocaine; a key to the apartment from which he was observed leaving; and $150 cash.
Later that day, a search warrant was obtained for the apartment and law enforcement recovered: powder cocaine, crack cocaine, and heroin; two 9 millimeter handguns; and $229,679 in cash, all from a closet in the master bathroom. Recovered from the apartment’s living room was $5,670 in cash and an electronic money counter.
United States Attorney Rod J. Rosenstein commended the FBI, DEA and the Metropolitan Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Brooke Carey, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Las Vegas Lawyer Sentenced to over Seven Years in Prison for Mortgage Fraud CrimesRead the Press Release
LAS VEGAS, Nev. – Las Vegas lawyer Gerry Zobrist was sentenced today to 87 months in prison for his involvement in a mortgage fraud scheme that caused over $30 million in losses to lenders, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
“Mortgage fraud contributed to the decimation of real property values in Nevada,” said U.S. Attorney Bogden. “Since 2008, we have been working vigilantly with our law enforcement partners to investigate and prosecute these fraudsters. Hundreds of individuals have been convicted, including lawyers, real estate agents, real estate brokers, loan officers, loan processors, and others who participated in these schemes and most of them are now serving time in federal prison.”
Zobrist, 43, of Las Vegas, was sentenced by U.S. District Judge James C. Mahan. Judge Mahan also ordered Zobrist to pay approximately $31 million in restitution and to serve five years of supervised release. Zobrist pleaded guilty in January to one count of conspiracy to commit bank fraud and wire fraud. He was allowed to self-report to federal prison by Dec. 6, 2013.
According to the plea agreement, from about June 2006 to May 2008, Zobrist and unnamed coconspirators solicited and paid persons with good credit ratings to serve as straw buyers to purchase homes in the Las Vegas area on behalf of Zobrist and the coconspirators. Zobrist and the coconspirators made offers to purchase the homes, and the sellers agreed to disburse part of the sales proceeds to real estate companies, coconspirators and third party entities controlled by Zobrist and the coconspirators under the pretense that the proceeds constituted attorney’s fees, marketing fees, commissions, and other fees. Zobrist and the coconspirators caused to be completed and submitted mortgage loan applications and supporting documents in the name of the straw buyers, which contained false and fraudulent information concerning the straw buyers’ income, assets, liabilities, intended occupancy status, and other things. Zobrist and the coconspirators also caused to be submitted to the lenders documents containing false information about the source of the down payments, value of the homes, and intended disbursements to Zobrist, the coconspirators, and straw buyers. Using this fraudulent scheme, Zobrist and the coconspirators purchased 144 homes and obtained mortgage loans for more than $53 million. Zobrist and the coconspirators defaulted on the mortgage loans causing the homes to go into foreclosure, and caused the financial institutions to suffer losses of at least $30 million.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Daniel R. Schiess and Sarah E. Griswold.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Lafayette Businessman Pleads Guilty to Charge in Scheme That Cost Investors MillionsRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Herbert S. “Steve” Fouke, 54, of Lafayette, pleaded guilty before U.S. District Judge Richard T. Haik to conspiracy to commit securities fraud, investment adviser fraud, wire fraud and mail fraud, involving an investment scheme that cost clients $8 million.
According to documents filed at the guilty plea, Fouke became a client of Lafayette resident Richard Buswell in 2006. Buswell worked as a licensed stockbroker from 2006 until 2009 for Bowman Investment Group LLC, which was also Buswell’s company.
Fouke admitted to recruiting friends and business associates to become clients of Buswell and the Bowman Investment Group. Fouke also admitted to being present at meetings between Buswell and his clients, during which Buswell made false statements to the clients about his credentials, the commissions he would charge, and the rates of return that he guaranteed the clients would receive. Buswell admitted in a guilty plea July 24, 2013 to engaging in frequent and excessive stock trades in order to earn commissions.
Fouke faces up to five years in prison, three years of supervised release, a $250,000 fine, and restitution for the conspiracy count. Buswell faces up to 20 years in prison, three years of supervised release, a $250,000 fine, and restitution for a wire fraud count. Sentencing dates have not been set.
The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Kelly P. Uebinger and Howard C. Parker are prosecuting the case.
Justice Department Settles Lawsuit Alleging Auto Lending Discrimination in Los AngelesRead the Press Release
The United States has settled a lawsuit alleging that an automobile dealership formerly doing business in Los Angeles violated the Equal Credit Opportunity Act (ECOA) by charging non-Asian customers higher interest rate markups than other customers for a period of at least three years, the Justice Department announced today. Union Auto Sales Inc., has agreed to pay $125,000 to resolve the allegations against it. The court entered the consent decree on Sept. 4, 2013.
The department’s amended complaint, filed in federal court in Los Angeles in March 2010, alleged that Union Auto Sales Inc., doing business as Union Mitsubishi, as well as other dealerships that are now out of business and in bankruptcy proceedings, charged higher interest rate markups on car loans to non-Asian customers, many of whom were Hispanic, than to similarly-situated Asian customers. In the auto industry, it is common practice for banks and other lenders to set a base interest rate or “buy rate” and then for the auto dealership to “mark up” the interest rate to the final rate the customer pays on the loan for the car. The complaint alleges that Union Auto Sales Inc., charged higher interest rate markups to non-Asian customers from at least 2004 to 2006.
Union Auto Sales Inc., is not currently in, and has no plans to re-enter, the business of automobile sales. Under the consent decree, Union Auto Sales will pay up to $125,000 to non-Asian customers who were charged higher dealer interest rate markups. If Union Auto Sales or its principal shareholder re-enter the business of automobile lending within the two year duration of the consent decree, it will implement clear guidelines for setting dealer markup and pricing, in compliance with ECOA, and establish appropriate fair lending training for its employees and officers.
“The Civil Rights Division enforces federal laws that protect consumers from auto lending discrimination,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “Every consumer should be treated fairly in the pursuit of credit, without regard to their race or nationality.”
This case came out of a referral from the Federal Reserve Board involving Nara Bank. The department entered into a partial consent decree with Nara Bank, a bank that financed many loans for Union Auto Sales and other car dealerships, in 2009. The partial consent decree required the bank to pay $410,000 to compensate several hundred non-Asian borrowers who were aggrieved by the discriminatory conduct.
A copy of the complaint, the consent decree, and the partial consent decree entered into with Nara Bank, as well as additional information about fair lending enforcement by the Justice Department, can be obtained from the Justice Department website at www.usdoj.gov/fairhousing.Justice Department Reaches Settlement withJerome County Idaho Sheriff’s Office to Resolve the Employment Rights of Army National Guard MemberRead the Press Release
The Depatment of Justice and U.S. Attorney Wendy J. Olson for the District of Idaho announced today that they reached an agreement with the Jerome County, Id., Sheriff’s Office to resolve the allegations that Jerome County violated the employment rights of Idaho Army National Guard Member Mervin Jones while he was recuperating from a knee injury that he sustained while performing military service.
The department’s complaint alleged that the Jerome County Sheriff’s Office violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by failing to properly reemploy and subsequently terminating Jones following his service with the Idaho Army National Guard. The complaint states that Jones began working for the Jerome County Sheriff’s Office as a correctional deputy in 2002. By 2007, he had been promoted through the ranks to corporal. During his employment with the sheriff’s office, Jones suffered a knee injury while deployed to Iraq in 2004, which Jones later aggravated in 2008 during a weekend training event with his guard unit. The complaint alleges that in 2009, while Jones was still recuperating from multiple knee surgeries, the sheriff’s office forced him to complete Family Medical Leave Act paperwork even though his leave was protected under USERRA, denied him light duty work to accommodate his physical limitations caused by the knee injury, attempted to subject him to an unlawful “fitness for duty” evaluation and physical fitness test before allowing him to return to work, and terminated his employment during the period of time permitted by USERRA to recover from an injury incurred in the line of duty. The settlement reached is a compromise to avoid the expense and uncertainty of litigation.
Subject to certain limitations, USERRA requires that service members who leave their civilian jobs to serve in the military be reemployed promptly by their civilian employers in the positions they would have held if their employment had not been interrupted by military service or in positions of comparable seniority, pay and status. In addition, USERRA requires employers to accommodate service members who are injured in the line of duty, and allows service members who are recuperating from such an injury up to two years to obtain reemployment without facing termination by their civilian employers.
Under the terms of the agreement, which was filed as a consent decree in the U.S. District Court for the District of Idaho, Jerome County has agreed to pay $150,000, which includes $75,000 in lost wages, to Jones. Jerome County has also agreed to provide a letter that requests Jones’ return to the state employment eligibility register maintained by the Idaho Division of Human Resources.“This settlement demonstrates our commitment to vigorous enforcement of the laws that protect the employment rights of our servicemembers,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The department is pleased that we were able to work cooperatively with Jerome County to resolve this matter without the need for contested litigation.”
“USERRA affords military members who leave their civilian careers behind for significant periods of time to serve our country certain protections against unjust terminations,” said U.S. Attorney Olson. “It is important that all veterans and especially those veterans who are injured serving their country, have the opportunity to return to civilian life and their careers free from worry about termination without cause.”The case stems from a referral by the United States Department of Labor following an investigation by the Department of Labor’s Veterans’ Employment and Training Service. This case is being handled by the Civil Rights Division and the U.S. Attorney’s Office for the District of Idaho.
Additional information about USERRA can be found on the Justice Department website: www.servicemembers.gov and www.usdoj.gov/crt/emp, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
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Justice Department Reaches Settlement with Jerome County Sheriff’s Office to Resolve the Employment Rights of Army National Guard MemberRead the Press Release
BOISE –The United States Justice Department and U.S. Attorney Wendy J. Olson announced today that they reached an agreement with the Jerome County Sheriff’s Office to resolve the allegations that Jerome County violated the employment rights of Idaho Army National Guard Member Mervin Jones while he was recuperating from a knee injury that he sustained while performing military service.
The Justice Department’s complaint alleged that the Jerome County Sheriff’s Office violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by failing to properly reemploy and subsequently terminating Jones following his service with the Idaho Army National Guard. The complaint states that Jones began working for the Jerome County Sheriff’s Office as a correctional deputy in 2002. By 2007, he had been promoted through the ranks to Corporal. During his employment with the Sheriff’s Office, Jones suffered a knee injury while deployed to Iraq in 2004, which Jones later aggravated in 2008 during a weekend training event with his Guard unit. The complaint alleges that in 2009, while Jones was still recuperating from multiple knee surgeries, the Sheriff’s Office forced him to complete Family Medical Leave Act (FMLA) paperwork even though his leave was protected under USERRA, denied him light duty work to accommodate his physical limitations caused by the knee injury, attempted to subject him to an unlawful “fitness for duty” evaluation and physical fitness test before allowing him to return to work, and terminated his employment during the period of time permitted by USERRA to recover from an injury incurred in the line of duty. The settlement reached is a compromise to avoid the expense and uncertainty of litigation. Jerome County does not admit to all of the allegations.
Subject to certain limitations, USERRA requires that service members who leave their civilian jobs to serve in the military be reemployed promptly by their civilian employers in the positions they would have held if their employment had not been interrupted by military service or in positions of comparable seniority, pay, and status. In addition, USERRA requires employers to accommodate service members who are injured in the line of duty, and allows service members who are recuperating from such an injury up to two years to obtain reemployment without facing termination by their civilian employers.
Under the terms of the agreement, which was filed as a Consent Decree in the U.S. District Court for the District of Idaho, Jerome County has agreed to pay $150,000 (which includes $75,000 in lost wages) to Jones. Jerome County has also agreed to provide a letter that requests Jones’ return to the state employment eligibility register maintained by the Human Resources Department of the State of Idaho.
“This settlement demonstrates our vigilant protection of the employment opportunities of our service members, and our commitment to vigorous enforcement of the laws that protect them,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The department is pleased that we were able to work cooperatively with Jerome County to resolve this matter without the need for contested litigation.”
“USERRA affords military members who leave their civilian careers behind for significant periods of time to serve our country certain protections against unjust terminations,” said Wendy Olson, United States Attorney for the District of Idaho. “It is important that all veterans and especially those veterans who are injured serving their country, have the opportunity to return to civilian life and their careers free from worry about termination without cause.”
The case stems from a referral by the United States Department of Labor following an investigation by the Department of Labor’s Veterans’ Employment and Training Service. This case is being handled by the Civil Rights Division and the U.S. Attorney’s Office for the District of Idaho.
Additional information about USERRA can be found on the Justice Department website: www.servicemembers.gov and www.usdoj.gov/crt/emp, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
Johnson City Man Convicted of Drug and Firearms OffensesRead the Press Release
GREENEVILLE, Tenn. – Following a two-day trial in U.S. District Court, on Sept 5, 2013, Marcus Lyonel Story, 33, of Johnson City, Tenn., was convicted of knowingly possessing a firearm in furtherance of a drug trafficking crime. Story had already pleaded guilty to possession of cocaine with intent to distribute, and possession of marijuana with intent to distribute.
Sentencing is set for 9:00 a.m., January 6, 2014. Story faces a mandatory minimum five years to life in prison. There is no parole in the federal system.
In May 2013 members of the Johnson City Police Department, First Judicial District Drug Task Force, and Drug Enforcement Administration, conducted a surveillance operation that resulted in the arrest of Story on an outstanding warrant. A subsequent search of Story’s home revealed 38.8 pounds of marijuana, 110 grams of cocaine and over $8000 in cash. The estimated street value of these drugs was $50,000. In addition, law enforcement also located six semi-automatic pistols and several hundred rounds of ammunition. Evidence presented at trial showed that Story kept the firearms to protect himself, his drug inventory, and his drug sale proceeds.
Special Assistant U.S. Attorney Nick Regalia represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Jennings Man Pleads Guilty to Importing and Distributing Anabolic SteroidsRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that Regan Chase Benoit, 25, of Jennings, La., pleaded guilty Thursday before U.S. District Judge Patricia Minaldi to importation and possession with intent to distribute anabolic steroids.
According to the evidence presented at the guilty plea, on May 24, 2012 U.S. Postal workers inspected a package from China and discovered that it contained one kilogram of anabolic steroid powder. The address on the package was for a Jennings residence. On May 30, 2013, authorities observed a woman picking up the parcel from the post office in Jennings. After detaining the woman, she told authorities the package was for Benoit. Benoit was questioned by police and admitted to importing steroid tablets and powder from China. He admitted that after receiving the drugs, he liquefied them and placed them in vials for distribution.
Benoit faces up to 10 years in prison, a $500,000 fine, and two years of supervised release for both counts. Sentencing has been set for December 5, 2013.
Homeland Security Investigations, the U.S. Postal Inspection Service and the Jennings Police Department conducted the investigation. Assistant U.S. Attorney Brett L. Grayson is prosecuting the case.
International Arms Smuggler Sentenced to X Years in PrisonRead the Press Release
PHILADELPHIA – Siarhei Baltutski, a/k/a Sergey Boltutskiy, 41, of Minsk, Belarus, was sentenced today to XX months in prison for conspiracy to violate the Arms Export Control Act, conspiracy to violate the International Emergency Economic Powers Act, and conspiracy to commit money laundering. Baltutski pleaded guilty on January 25, 2013. In addition to the prison term, U.S. District Court Judge Paul S. Diamond ordered ...
The sentence was announced by United States Attorney Zane David Memeger, Acting Assistant Attorney General John Carlin of the Justice Department’s National Security Division, Acting Assistant Attorney General Mythili Raman, of the Justice Department’s Criminal Division, and Special Agent-in-Charge John P. Kelleghan of Immigration and Customs Enforcement Homeland Security Investigations.
Between January 1, 2008 and September 21, 2011, Baltutski organized a network of buyers in the United States to obtain and illegally export to Belarus high-tech military hardware such as Scorpion Thermal Weapon Sights, ThOR 2 Thermal Imaging Scopes, Thermal-Eye Renegade 320's, and other night vision targeting devices. During the course of the conspiracy, Baltutski and his associates illegally exported hundreds of such items. Baltutski then arranged for hundreds of thousands of dollars to be secretly wired, via offshore shell companies, to purchase these items, pay for shipping, and pay his network of buyers.
“The Arms Export Control Act and the International Emergency Economic Power Act prohibit the export of high tech military technology which is critical to the national security and foreign policy interests of the United States,” said Memeger. “Keeping this important technology out of the hands of current and potential adversaries is critical to our national interest and the safety and success of our service members in combat today.” “Today’s sentence sends a strong message that the justice system will seriously punish those who threaten our national interests through this type of criminal activity.”
“HSI is committed to protecting Americans and our allies from greedy profiteers exporting sensitive technology,” said Kelleghan. “When sensitive military components get into the wrong hands, our national security and our troops’ lives are seriously threatened.”
“The FBI places a high priority on preventing advanced technology from getting to those who might use it to harm American troops or U.S. interests,” said FBI Special Agent-in-Charge Edward J. Hanko. “In this case, one man’s greed potentially put untold numbers of Americans at risk.”
This case was investigated by the U.S. Immigration and Customs Enforcement Homeland Security Investigations and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Robert Livermore, Trial Attorney Jerome Maiatico with the Department of Justice’s Organized Crime and Gang Section, and Trial Attorney David Recker of the National Security Division.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indictment Charges New Haven Man with Heroin Distribution OffenseRead 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 RAFAEL ORTIZ, also known as “Rizz,” 48, of New Haven, with trafficking heroin.
The indictment alleges that on August 2, 2013, ORTIZ possessed with intent to distribute heroin.
ORTIZ was arrested yesterday on a criminal complaint. He is currently detained.
If convicted, ORTIZ faces a maximum term of imprisonment of 30 years and a fine of up to $2 million.
This case has been assigned to U.S. District Judge Robert N. Chatigny in Hartford.This matter is being investigated by the Federal Bureau of Investigation and the New Haven Police Department, and is being prosecuted by Assistant U.S. Attorney John H. Durham.
Acting U.S. Attorney Daly stressed that an Indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Indiana Man Sentenced to Federal Prison in Black Money ScamRead the Press Release
PROVIDENCE, R.I. – Alvin Pennue, 32, of Indianapolis, Ind., was sentenced today to 21 months in federal prison for passing altered United States currency on two occasions and for inducing a victim to transport $5,000 from Massachusetts to Rhode Island as part of a Black Money scam, announced United States Attorney Peter F. Neronha and Brian S. Deck, Acting Resident Agent in Charge of the Providence Office of the United States Secret Service.
At sentencing, Pennue was also ordered by U.S. District Court Judge John J. McConnell, Jr. to serve three years of supervised release following his prison term and make restitution in the amount of $5,000 to one of his victims. Pennue was convicted by a federal court jury in Providence on June 19, 2013, of two counts of passing altered obligations of the United States and one count of interstate transportation of stolen property - inducing a victim to transport U.S. currency in interstate commerce as part of a scheme to defraud.
Black Money scams are schemes to defraud whereby individuals attempt to obtain money from a victim by persuading that person that large quantities of banknote-sized paper are really U.S. currency that has been dyed black, typically to avoid detection by customs agents. The victim is persuaded, with the prospect of sharing in the proceeds, to supply real currency to purchase supplies and otherwise facilitate a chemical transformation that will remove the black dye covering the supposedly genuine currency. In reality, except for a few genuine currency bills used to advance the scheme, the black money is usually black construction paper.
At trial, the government presented evidence that during October 2011, Alvin Pennue, through another person, passed to an undercover U.S. Secret Service agent two blackened $100 bills and two blackened $20 bills to a victim of the scam. Pennue persuaded the victim to withdraw $5,000 in $100 bills from his bank account in Massachusetts and to bring that money to Providence to invest in the black money scam.
The evidence showed that at the time of his arrest on October 28, 2011, Alvin Pennue and a second person were in possession of a suitcase containing supplies used to facilitate a black money scam. Pennue was also in possession of over $2,700, including twenty-three $100 bills.
Arrests warrants have been issued for two co-defendants in this matter, Saah Johnson, 36, of Fall River, Mass., and Anthony Chadheen, 35, of Providence.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose and Special Assistant U.S. Attorney Benjamin S. Towbin.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Providence Police Department, and the Rhode Island State Fire Marshal’s Office assisted the U.S. Secret Service in the investigation of this matter.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/Contact: 401-709-5357
[email protected]Indiana Man Sentenced for Training Federal Job Applicants to Lie During Polygraph ExaminationsRead the Press Release
ALEXANDRIA, Va. – Chad Dixon, 34, of Marion, Indiana, was sentenced today to eight months in prison followed by a three year term of supervised release, and ordered to forfeit $17,091.07 for his role in a scheme to deceive the federal government during polygraph examinations conducted as part of federal security background investigations.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division made the announcement following the sentencing. Dixon previously pleaded guilty to wire fraud and obstruction of an agency proceeding on December 17, 2012.
According to court documents, Dixon operated an Internet-based business that trained customers how to “beat” polygraph examinations conducted by various agencies of the federal government, including within the intelligence community. Dixon taught physical and mental polygraph countermeasures designed to obstruct polygraph examinations by producing “truthful” polygraph charts ”even if you are flat out lying.” Dixon customized his trainings by asking each customer the purpose of their polygraph examination and the information they wanted to conceal from the government. Dixon instructed his customers to conceal their misconduct, to deny receiving polygraph countermeasures training, and to lie during their exams. The purpose of the scheme was for Dixon to enrich himself by training federal job applicants and federal employees how to conceal specific and material information from the federal government in exchange for between approximately $1,000 and $2,000 plus travel expenses.
Dixon provided private training sessions around the country to his customers, including applicants for federal law enforcement and national security positions. For example, Dixon trained two federal contractors – associated with a U.S. intelligence agency and a federal law enforcement agency – who held Top Secret security clearances. In addition, Dixon trained Applicant A, who applied for a United States Customs and Border Protection (“CBP”) Air Interdiction Agent position, and Applicant B, who applied for a CBP Border Patrol Agent position, to utilize polygraph countermeasures. He instructed both applicants to lie about his training.
Furthermore, on two separate occasions, Dixon trained undercover agents posing as applicants for CBP law enforcement positions to lie in order to beat polygraph tests. The first undercover agent told Dixon that, while previously employed as a local jailer, she smuggled contraband into the jail for inmates and accepted bribes. She also told Dixon that she was an active drug-user and that she had lied about all of her misconduct on her security background forms. Dixon instructed the agent to lie about her past criminal activities and taught her how to obstruct the polygraph exam. The second undercover agent told Dixon that, in order to pass a pre-employment polygraph test for a federal law enforcement position, he had to conceal that he had sex with a minor and to hide information concerning a brother who was a member of the Los Zetas drug cartel involved in cross-border crimes involving drugs, extortion, murder, and kidnapping. The agent told Dixon that he gave his brother his U.S. passport so his brother could illegally enter the United States for criminal purposes. Nevertheless, Dixon trained the second undercover agent and told him not to reveal the information about his brother or the sexual contact with a minor.
Dixon also admitted to providing training to nine convicted sex offenders who were required to take polygraph examinations as a condition of court-ordered probation or parole, including:
- A 35-year-old man from Herndon, VA, convicted of peeping;
- A 52-year-old man residing in Bethesda, MD, convicted of sexual abuse of a minor;
- A 53-year-old man residing in Quincy, IL, convicted of a child pornography-related offence;
- A 46-year-old man from Aurora, TX, convicted of sexual assault of a minor;
- A 55-year-old man in New York, NY, convicted of sexual assault of a minor;
- A 42-year-old man from Seminole, TX, convicted of attempted sexual battery of a minor;
- A 39-year-old man from Carrolton, TX, convicted of indecent sexual contact with a child;
- A 39-year-old man in Raleigh, NC, convicted of sexual battery; and
- A 30-year-old man in Commerce City, CO, who failed to properly register as a sex offender.
This case is being investigated by the U.S. Customs and Border Protection Office of Internal Affairs, the Department of Homeland Security Office of the Inspector General, the Federal Bureau of Investigation, and the Department of Defense Criminal Investigative Service. The case is being prosecuted by Assistant United States Attorney Uzo Asonye and Criminal Division Public Integrity Section Trial Attorneys Anthony J. Phillips and Eric L. Gibson.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Huffman Resident Handed Nearly 18-Year Sentence for Two Child Pornography ConvictionsRead the Press Release
HOUSTON – Ryan Scott Solis, 32, has been sentenced to federal prison for distributing and possessing child pornography, announced United States Attorney Kenneth Magidson. Solis, of Huffman, pleaded guilty Jan. 25, 2013.
U.S. District Judge Melinda Harmon, who accepted the guilty plea, sentenced Solis to 210 and 120 months for the distribution and possession convictions, respectively, which will run concurrently for a total of 210 months in federal prison without parole. In handing down the sentence, Judge Harmon considered stated that this is a very, very serious crime that should be punished. Solis was further ordered to pay restitution to the victims whose images were found on his computer, will serve 10 years of post-prison supervised release and he will also be ordered to register as a sex offender.
Solis came to the attention of authorities when an undercover officer observed an IP address registered to Solis sharing incest or child rape stories, images and videos of child pornography with others online. A search warrant was later executed at his address, at which time three hard drives, one computer tower and miscellaneous CDs/DVDs were seized. A subsequent forensic analysis of the seized items resulted in the discovery of more than 2,700 child pornography images and more than 540 child pornography videos that depicted children involved in lewd exhibitions, deviant sexual acts and sadistic and masochistic behavior. One of the images displayed 4-6 year-old female victim being penetrated by an adult male.
As part of the documents in support of his plea, Solis admitted to possessing and distributing child pornography.
Solis has been in federal custody since July 13, 2012, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, initiated and investigated by the Colorado Internet Crimes Against Children Task Force, FBI, Beaumont Police Department and Homeland Security Investigations, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."This case is being prosecuted by Assistant United States Attorney Megan J. Paulson and former Special Assistant United States Attorney Demetrius Bivins.
Hogsett Announces Arrest of Jasper Man on Child Exploitation ChargesRead the Press Release
JASPER – Joseph H. Hogsett, the United States Attorney, announced today that Kurtis Head, age 33, of Jasper, has been charged with twelve counts of receiving child pornography. Hogsett said the filing of formal charges comes as his office has launched Operation Community Watch, a new effort which aims to reduce the abuse of Hoosier children through innovative investigative techniques and aggressive prosecution.
“These cases are always difficult, both as a prosecutor and as a parent,” Hogsett said. “But they are important, not just to ensure the safety of Hoosier children, but also to send a message that we will not tolerate such behavior in our communities. You are not anonymous online – if you engage in this activity, we will find you and you will be held accountable.”
According to charging documents, Head was arrested after a collaborative investigation that involved Homeland Security Investigations and the Jasper Police Department. Detectives connected to a computer online that was sharing images and videos of child pornography. That activity was then allegedly traced to an apartment in Jasper. On July 31, a federal search warrant was executed at the residence.
As a result of this search, law enforcement allegedly located a hard drive that contained thousands of images and videos depicting minors engaged in sexual conduct. In addition, the criminal complaint alleges that the defendant may have been responsible for the sexual abuse of a six year old female child approximately two years ago. Head also faces state charges related to these allegations.
According to Assistant U.S. Attorney Lauren Wheatley, who is prosecuting the case for the government, Head faces a sentence under federal guidelines between five and twenty years on each count. In addition, the defendant also could be sentenced to years of supervised release at the end of his prison term, as well as lifetime registration as a sexual offender.
This arrest comes as Hogsett has announced a comprehensive crackdown on child exploitation in Indiana. Just last year, he launched “Operation Community Watch,” which will allow prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials.
This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 52 defendants, an increase of 37% over the prior year, and 49 defendants were convicted and sentenced. These are all-time records for the Office. The Office conviction rate for PSC cases was 100%, a level it has been at since 1991.
The greatest measure of the PSC program’s impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last year, the U.S. Attorney’s Office successfully identified more than 120 child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.
Led nationally by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Informations, indictments, and criminal complaints are only a charge and are not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Georgia Emissions Inspectors Plead Guilty in Federal CourtRead the Press Release
ATLANTA – Jerome Clarence Barnes, Jr. and Jared F. Walker have pleaded guilty for their roles in a scheme to fraudulently issue emissions certificates for cars that would have failed the emissions inspection required by law.
“Barnes orchestrated a scheme to take hundreds of thousands of dollars in illegal payments in return for falsely certifying that cars had passed emissions tests,” said United States Attorney Sally Quillian Yates. “By issuing false certificates, not only did Barnes and his codefendants corrupt the emissions certification system, they also allowed a threat to air quality in Atlanta, and as a consequence, public health.”
“Congress enacted the Clean Air Act to ensure that all Americans have the right to breathe clean, safe air and violators who produce fraudulent emissions data undermine that right.” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in Georgia. “All of the violations in this case took place in the Greater Atlanta area, a region that exceeds minimum federal standards for hazardous air pollutants. This case is an excellent example of how EPA, working with investigators from the Georgia Environmental Protection Division and other agencies, works to protect both the public and the environment.”
“The result of this investigation sends an important message to anyone who would try to defraud Georgia’s vehicle emissions program,” said Judson H. Turner, Director of the Georgia Environmental Protection Division (EPD). “The program has a major role in the state’s plan to improve air quality in metropolitan Atlanta, so we are very pleased with this outcome.”According to United States Attorney Yates, the charges and other information presented in court: Barnes, 34, of Lithia Springs, Ga., was responsible for issuing over 4,000 fraudulent emissions certificates to car owners in Georgia from September 2011 to September 2012, falsely stating that the owners’ cars passed the required emissions test. Barnes worked with other individuals to open emissions inspection stations in their names that he would then use to issue fraudulent emissions certificates. Opening stations in others’ names helped conceal Barnes’ involvement in the fraudulent activity. He wanted to avoid detection because he previously owned two inspection stations that state authorities had shut down for fraud. When authorities would discover emissions fraud occurring at one of the inspection stations, Barnes continued the fraud at another station that was opened under the name of a different owner. During the scheme, Barnes used On Time Emissions in Fulton County, All Clean Emissions in Cobb County, BDH Emissions in Dekalb County, Elite Emissions in Fulton County, and Cleaner Atlanta Emissions in Cobb County, to conduct fraudulent emissions testing. Walker, 35, of Austell, Ga., owned All Clean Emissions.
Jared F. Walker, and co-defendants Ieka N. Jones, 33, of Winston, Ga., and Seretha Franklin, 36, of Acworth, Ga., were licensed emissions inspectors who worked with Barnes to issue passing emissions certificates to car owners whose cars would have otherwise failed the emissions test. Instead of connecting the owners’ real cars to the emissions equipment, the defendants connected different cars they knew would pass the test. During the tests, the computer system automatically transmitted emissions testing data to a statewide database accessible by the Georgia Environmental Protection Division. The defendants manually entered other information into the system, such as the make, model, and vehicle identification number, to make it appear that they were testing the owners’ real cars, many of which had already failed an emissions test or showed equipment malfunctions. The defendants charged $100 to $125 for a fraudulent emissions test, far more than the usual amount charged for a legitimate inspection. Georgia law prohibits inspection stations from charging more than $25 for an emissions test.
Barnes pleaded guilty to one count of conspiring to commit wire fraud by depriving the State of Georgia and its citizens of their right to his honest services as a licensed emissions inspector. Walker pleaded guilty to one count of violating the Clean Air Act. The conspiracy charge against Barnes carries a maximum sentence of 5 years in prison. The Clean Air Act charge against Walker carries a maximum sentence of 2 years in prison. Each charge carries a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
The Clean Air Act is a federal law that authorizes the United States Environmental Protection Agency to establish air quality standards to protect public health and welfare and to regulate emissions of hazardous air pollutants. As required by the Act, the State of Georgia has established a vehicle emissions testing program that requires cars in several counties be inspected to ensure that their emissions do not exceed limits for hydrocarbons, nitrogen oxide, and other compounds. With certain exceptions, car owners must submit an emissions certificate to obtain their annual vehicle registration. The Clean Air Act prohibits making false statements in records, including emissions certificates and database records, that are required to be maintained by the Act.
Sentencing is scheduled for November 22, 2013, at 10:00 a.m. before United States District Judge Timothy C. Batten, Sr. The indictment charging Jones and Franklin with conspiracy and Clean Air Act violations remains pending.
This case is being investigated by Special Agents of the United States Environmental Protection Agency, Criminal Investigation Division, and the Georgia Department of Natural Resources, Environmental Protection Division.
Assistant United States Attorney Stephen H. McClain is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Wayne County Official Sentenced for FalsifyingDocuments to Conceal Bribery SchemeRead the Press Release
A former Wayne County official was sentenced to more than three years in prison for obstructing justice in the investigation of a bribery and extortion scheme, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Acting Special Agent in Charge John Robert Shoup of the Federal Bureau of Investigation (“FBI”).
Zayd Allebban, former Wayne County Director of Enterprise Applications, the office that does software application development for Wayne County, was sentenced to 41 months in federal prison by U,S. District Judge Stephen J. Murphy, III. Allebban was found guilty at trial in February by a federal jury in Detroit on charges of falsifying documents with the intent to obstruct justice. The purpose of the falsified documents was to conceal a bribery and extortion scheme involving Allebban’s friend and supervisor, Tahir Kazmi, former Wayne County Chief Information Officer.
The evidence presented at trial established that Allebban and Kazmi sought to obstruct justice by seeking to persuade a private contractor to provide false information to the FBI and to a federal grand jury investigating corruption in the Wayne County government. Allebban and Kazmi sought to conceal the fact that the contractor had given Kazmi tens of thousands of dollars in cash and trips to Hawaii, Turkey, and Florida. Allebban was found guilty of falsifying documents that indicated that all payments from the contractor had been repaid by Kazmi, prior to the initiation of the grand jury investigation, with the intent to obstruct the grand jury and FBI investigation. Allebban, as part of the scheme, also delivered $24,000 in cash to the private contractor in an effort to induce the contractor to tell the FBI that the contractor had never given anything to Kazmi.
Allebban was found not guilty on separate charges of conspiracy to obstruct justice and obstruction of justice by means of false documents.
Tahir Kazmi pleaded guilty on July 26, 2012, to accepting a bribe and is scheduled to be sentenced on December 13, 2013. He faces a maximum sentence of ten years in prison and/or a $250,000 fine.
U.S. Attorney McQuade said, “Public officials who illegally enrich themselves will be detected and brought to justice. Efforts to conceal their crimes will bring additional charges and higher penalties.”
FBI Acting Special Agent in Charge Shoup said, "The citizens of Wayne County deserve honest government and leaders committed to serving the needs of taxpayers. This verdict should serve as a reminder that the FBI-led Detroit Area Public Corruption Task Force will remain vigilant and dedicated to stopping these illegal acts."The case was investigated by Special Agents of the FBI and Detroit Area Public Corruption Task Force. It is being prosecuted by Assistant United States Attorney Sheldon Light.
Former Pennsville, N.J., Police Officer Sentenced to Prison for Obstructing Child Pornography InvestigationRead the Press Release
CAMDEN, N.J. – A former Pennsville, N.J., police officer was sentenced today to 15 months in prison for obstructing the FBI’s investigation of his alleged possession of child pornography, U.S. Attorney Paul J. Fishman announced.
Robert Waterman, 32, of Wrightstown, N.J., previously pleaded guilty before U.S. District Judge Robert B. Kugler to an indictment charging him with one count of obstruction of a federal investigation in connection with his destruction of a computer hard drive.
According to the indictment and statements made in court:
Waterman was formerly a police officer with the Pennsville Police Department. On March 4, 2010, while he was still a member of that department, FBI special agents told Waterman that he was being investigated for alleged possession of child pornography. During the plea hearing, Waterman admitted that following this interview with the FBI, he located a hard drive in his garage and placed it in his patrol car. Waterman admitted that he then broke apart the hard drive’s circuit board into small pieces while in his patrol car at the police department. Waterman admitted he did this to obstruct the FBI’s investigation.
In addition to the prison term, Judge Kugler sentenced Waterman to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia, with the investigation. He also thanked the Salem County Prosecutor’s Office, under the direction of Prosecutor John T. Lenahan, and officers of the Pennsville Police Department, under the direction of Police Chief Allen J. Cummings, for their cooperation and assistance with the investigation.
The government is represented by Assistant U.S. Attorneys Matthew J. Skahill and Amy Luria of the U.S. Attorney’s Office Special Prosecutions Division.
Defense counsel: Assistant Federal Public Defender Maggie Moy Esq., Camden
13-358Former Ohio Education Official Sentenced for Possession of Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – John T. Childs, 48, of Columbus, Ohio was sentenced to six months in prison followed by five years under court supervision, for possessing eleven images of child pornography stored on his home computer. Childs was also ordered to register as a sex offender and allow the court to install monitoring software on his computer.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, William Hayes, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan, and Franklin County Sheriff Zach Scott and members of the Franklin County Internet Crimes Against Children Task Force (ICAC), announced the sentence imposed today by Senior U.S. District Judge James L. Graham.
Childs is the former chief financial officer and chief operating officer for the Ohio Department of Education. He pleaded guilty on April 29, 2013 to one count of possession of child pornography. “At the time he entered his plea of guilty, the defendant admitted to utilizing a peer-to-peer file sharing program to download and view videos of child pornography on the computer located in his home,” Assistant U.S. Attorney Heather Hill wrote in a memorandum filed with the court prior to sentencing. Childs possessed approximately 11 images of child pornography on his desktop computer when HSI and ICAC officers executed a search warrant at his home on October 10, 2012.
Childs’ sentence also includes a requirement that he undergo mental health and sex offender treatment as directed by his probation officer. He will also be required to register as a sex offender in any state where he lives, works or goes to school while on supervised release. Judge Graham ordered him to report to an institution to be designated by the U.S. Bureau of Prisons within 60 days.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the investigation by HSI agents and ICAC officers, as well as Assistant U.S. Attorney Heather Hill, who prosecuted the case.
Former Employee Pleads Guilty to Stealing from Arkansas Sports Hall of FameRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; and Brian T. Marr, Special Agent in Charge of the Little Rock Field Office, United States Secret Service; announced that Jennifer Smith, 47, of Little Rock, a former employee at the Arkansas Sports Hall of Fame, pleaded guilty today before United States District Judge Brian Miller to stealing nearly $120,000 from the Hall of Fame.
“The Arkansas Sports Hall of Fame is an institution where people are honored for their contributions to this state,” stated Thyer. “It is a shame that someone would steal from this organization while seemingly supporting it as an employee. Thankfully, an audit and great investigative work have exposed the perpetrator of this theft and brought her to justice.”
Marr said, "Secret Service Investigations are committed to aggressively identifying those associated with these types of financially motivated crimes. These crimes create economic havoc on the businesses located in our communities. Working with the North Little Rock Police Department and United States Attorney’s Office we ensured that this defendant, was held responsible and accountable for her actions."
Smith pleaded guilty to a one-count Information charging her with access device fraud. Smith used Arkansas Sports Hall of Fame credit cards from 2007 to 2012 to make $118,296.98 in unauthorized personal purchases. The purchases included charges to an athletic club, restaurants, women’s and children’s clothing stores, and charges for out-of-town trips.
Smith’s scheme was discovered in September of 2012 following an audit that was triggered when the Sports Hall of Fame’s bank statement showed a payment to the Little Rock Athletic Club for personal dues in the name of Jennifer Smith.
Access device fraud carries a maximum sentence of not more than 15 years imprisonment and/or a fine of not more than $250,000 and not more than three years supervised release. Sentencing will be set at a later date by the Court.
The investigation was conducted by the Secret Service, with assistance from the North Little Rock Police Department. The case was prosecuted by Assistant United States Attorney Chris Givens.
Former Bank Employee Sentenced for Embezzling Funds from Federal Tax ChecksRead the Press Release
PROVIDENCE, R.I. – Elvy Gomez, 40, of Providence, R.I., was sentenced today to 12 months and one day of community confinement for embezzling more than $95,000 from stolen federal tax checks, announced United States Attorney Peter F. Neronha; John Collins, Acting Special Agent in Charge of IRS Criminal Investigation; and Brian S. Deck, Acting Resident Agent in Charge of the Providence Office of the U.S. Secret Service.
At sentencing, U.S. District Court Chief Judge Mary M. Lisi, who recommended that Gomez be assigned to serve his sentence at the Coolidge House in Boston, also ordered Gomez to serve 3 years supervised release upon completion of his confinement, forfeit $34,376.37 and pay restitution in the amount of $95,559.
Gomez, a former employee of Bank of America, pleaded guilty on June 12, 2013, to one count each of theft of government property, forging an endorsement on treasury checks and money laundering.
At the time of his guilty plea, Gomez admitted to the court that he used his position at the bank to access a dormant checking account which he used to deposit stolen treasury checks and then withdraw the funds. Gomez admitted to obtaining an ATM card in the name of the person whose name appeared on the account, and that between April 2012 and August 2012, he deposited fourteen stolen treasury checks totaling $95,559 into the bank account and then withdrew the funds for his own personal use.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by IRS Criminal Investigation with the assistance of the U.S. Secret Service.
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Contact: 401-709-5357
[email protected]Florida Man Sentenced in Baltimore Fraud Scheme Involving the Online Purchase of Gold and Silver CoinsRead the Press Release
Baltimore, Maryland - U.S. District Judge Catherine C. Blake sentenced Tasleem Ekun, age 36, of Sunny Isles Beach, Florida, today to two years in prison followed by one year of supervised release for bank fraud and aggravated identity theft.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to his plea agreement, from January to October 2011, Ekun fraudulently used another individual’s Discover credit card to purchase gold coins online. While investigating a drug trafficking organization, FBI agents overheard Ekun talking with co-defendant Roy Clay on the phone about a scheme to fraudulently purchase between $70,000 and $120,000 of gold and silver coins online and have them shipped, via U.S. Postal Service, to locations in Baltimore.
Following his conviction on drug trafficking charges, Judge Blake sentenced Roy Lee Clay, age 47, of Baltimore, on August 27, 2013 to life in prison, for conspiracy to distribute and possess with intent to distribute heroin, enhancing Clay’s sentence based upon two previous drug trafficking convictions. The government has moved to dismiss this bank fraud case against Clay.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, Maryland State Police and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Ayn B. Ducao and Christopher J. Romano, who prosecuted this case.
Federal Law Enforcement Officers Association 22nd Annual National Awards Banquet and Ceremony Remarks by U.S. Attorney John WalshRead the Press Release
It is a profound honor to speak to you all tonight, both as a member of the federal law enforcement community, and also as a citizen of this great Republic. As others have noted long before me, speaking in praise of men and women for their specific acts of courage and heroism, as you have asked me to do, is not only an honor, but also a profound challenge. My fear is that my lack of eloquence might somehow diminish or undervalue the worth of the remarkable deeds you will soon be hearing about tonight. The facts themselves are the best form of praise, and they speak eloquently in true homage to the brave agents and officers who are being honored here.
Nevertheless, let me offer a few observations as a deeply appreciative lawyer and prosecutor. Sometimes I am sure that it appears to all of you in law enforcement that we prosecutors have lost sight of who is actually doing the hard work of law enforcement, as we sit comfortably in our office chairs, dispensing what we are confident is great wisdom, or at worst, while we stand before the occasional irate judge or skeptical jury as we prosecute a case. I’m sure it sometime looks like we’ve forgotten that we ourselves didn’t collect the evidence we present in court; or that we think that we ourselves arrested the defendants we cross-examine. And I know for a fact that it can appear at times that we have forgotten that while our role as prosecutors is important in our system of justice, it is merely the final formal act of bringing wrongdoers to justice, not the entire endeavor.
So, as a prosecutor, let me first be clear that we prosecutors do remember who actually does the difficult and all-too-often dangerous work of protecting the public in the hard-edged real world, not just the courtroom. And that is all of you -- and particularly, it is the men and women receiving awards tonight. Tonight you will hear the facts about acts of valor that are indeed the best praise of those we are honoring: Men and women who ran into burning buildings to save the aged and infirm; who engaged in intense firefights with the Taliban in Afghanistan; who sprinted to leap into speeding cars to bring them under control and then save the lives of the very wrongdoers they were seeking to apprehend; who dove into the raging ocean surf to rescue drowning swimmers at the cost of their own lives, and more. My words tonight are small in the balance compared to the simple facts of what these men and women have done. There is so much to honor here.
Any thoughtful person hearing these tales of heroism will ask him or herself two questions. The first is the age-old question: Had I been there that day, would I have acted so nobly? That question, I suppose, has no certain answer until the actual moment arrives. The second question is more complex: Why? Why did these men and women react and act in a way that was so true, so good and so selfless?
Let me address the second question first, in the hope that it might help us all consider the first as well. Why were these men and women so brave and selfless? Obviously, I can’t speak to their thoughts and motivations individually, but let me venture a few broad observations based on my experience in and with law enforcement.
First, there is no doubt that character played a commanding role. Each of the award winners here tonight reached down deep into their souls in a moment of crisis and danger and found something strong and true that they could work with, that impelled them to act, and that freed them to act.
Moreover, the intense and superior training that all of you have received as law enforcement, whether federal, state or local, unquestionably played a crucial role. These men and women, like you, had been trained and conditioned to act under dangerous and unclear circumstances, to weigh the various options almost instantaneously, and to act as their trained judgment guided them.
But as I read through the awards before coming here, something else also struck me: As you listen to the awards this evening, you will note that many of the officers being honored acted in the specific furtherance of their duty as law enforcement officers, and that many others did not – that is, they intervened to rescue others while off-duty or merely passing by, and with no direct relationship to their law enforcement work. Now, whether as part of their immediate duty or not, these acts are equally noble and equally deserving of our praise.
But the fact that our law enforcement officers acted without hesitation in both circumstances – on duty, or off -- is telling, because it says something fundamental about what motivated them: A sense of responsibility; a sense of ownership of our nation and community; and an abiding sense of our common humanity.
And that says something crucial not only about these officers, but about this nation. Why did these men and women feel so deeply that sense of common purpose and responsibility? Police officers in Egypt or Syria today are also highly trained, but guess what -- they don’t act this way. Quite to the contrary, by all accounts they are behaving in a diametrically opposite way. And the highly trained police in Nazi Germany and the Soviet Union did not rise to the aid of others in this way – far from it. They put their training to different, and darker, uses.
No, in the end, what struck me about the acts of valor that we will be hearing about tonight is they are the acts of a free people, living in a democracy that calls on all of us to participate and all of us, in effect, to rule ourselves, putting us to that highest test. They are the acts of people living in a democracy that operates under the protection of a law – our Constitution – that holds us all equal in our rights and equal in our obligations to others, a law that in this country guides us in our day-to-day lives, not just in our courts.
These men and women acted as they did because of their incredible character and intense training, yes. But they also acted in this noble way because they are Americans, who feel and understand reflexively that they themselves are responsible for their communities, and who know in the very marrow of their bones that upon each of them and each of us depends the success or failure of this great experiment in democracy and freedom that we call the United States of America.
We live in a time of great conflict and discord in the nation’s politics, and it is easy to get a little disheartened about the future of our public life. But reading these awards leaves no doubt that the future of our great national experiment is in very good hands. These men and women show us we have nothing to fear. And they give us something priceless: When the day does arrive for each of us when that first question is called: “Will I act so bravely?” we have their real, living example urging us on.
So, in closing, let me say this: Thank you – both to the award winners here tonight, whose contributions have been frankly astonishing, but also to all their family members here, who are the rock on which these men and women depend. My particular thanks and deepest best wishes go to the family of Special Agent Knapp, who is honored tonight and who lost his life in order to save others. And finally, let me also thank all the members of law enforcement in attendance. Thank you not only for the work you do, and the bravery you show, but for the light you hold up showing all of us as Americans what free men and free women can do.
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Federal Jury Convicts Martinez Man for Attempting Online Enticement of A Minor and Destruction of EvidenceRead the Press Release
AUGUSTA, GA – Fawad Shah Syed, 47, of Martinez, Georgia, was convicted on Wednesday by a federal jury after a 2-day trial before U.S. District Court Judge J. Randal Hall for the Attempted Online Enticement of a Minor to Engage in Sexual Activity, Destruction of Records in a Federal Investigation, and Attempted Destruction of Records in a Federal Investigation.
United States Attorney Edward Tarver said, “This defendant was convicted of engaging in inappropriate communications with a girl whom he believed to be 14 years old in order to engage in illicit sexual conduct, and destroying evidence related to that charge. The online solicitation of minors for sexual purposes is deplorable, and the U.S. Attorney’s Office aggressively prosecutes individuals, like this defendant, who are involved in such predatory acts towards our children. Syed’s conviction will help protect our children from such future predatory acts.”
Evidence presented during the trial revealed that Syed, posing as a man in his twenties named “Daniel,” engaged in online communications with a person he believed to be a 14-year-old girl who he initiated contact with online. After four days of text messaging and several attempts to meet the girl, Syed showed up at what he believed to be the girl’s residence with condoms and alcohol. He was immediately arrested by law enforcement officers. Shortly thereafter, he contacted his wife from jail, and before telling her what charges he faced, instructed her to delete his email account and remotely wipe his phone. He also asked her to wipe his computer. Mrs. Syed cooperated with law enforcement thereafter, providing an investigator with Defendant’s computer and testifying at trial. Syed’s computer was searched, and revealed online texts that the Defendant had last summer with a 13-year-old girl.
Syed faces up to life in prison, a fine of up to $250,000, and between 5 years and life of supervised release for the enticement charge. He also faces up to 10 years in prison for each destruction of evidence charge. Syed remains in custody pending his sentencing hearing. A sentencing date will be scheduled following completion of a presentence investigation and report.This prosecution was the result of a joint investigation of the Richmond County Sheriff’s Office and the FBI’s Computer Crime Child Exploitation Task Force. This case was brought as part of Project Safe Childhood, which is a nationwide U.S. Department of Justice initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ 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.
Assistant United States Attorney Nancy Greenwood, Deputy Criminal Chief in the Augusta U.S. Attorney’s Branch Office and Project Safe Childhood Coordinator, is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.