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Thursday 5 September 2013
Barre Man Sentenced to 66 Months in Federal Prison for Possessing Stolen HandgunsRead the Press Release
The Office of the United States Attorney for the District of Vermont, stated that on September 5, 2013, Bruce Lamell, 39, of Barre, Vermont, was sentenced to 66 months in federal prison for possessing firearms stolen from R&L Archery, a sporting goods store located in Barre, Vermont. United States District Judge William K. Sessions III, sitting in Burlington, also ordered Lamell to serve a term of three years of supervised release following Lamell’s prison sentence.
According to court records, Lamell broke into R&L Archery during the early morning hours of October 29, 2011 and stole five handguns and other merchandise. Law enforcement officials recovered all five stolen firearms from Lamell’s Barre residence on the evening of October 29, 2011. At the time he committed the offense, Lamell was serving a 6-month to 2-year sentence imposed by the Vermont Superior Court in Washington County following Lamell’s 2010 felony conviction for grand larceny. The Vermont Department of Corrections permitted Lamell to serve his sentence at home pursuant to the Department’s furlough program.
For possessing the stolen firearms, Lamell faced a maximum federal prison sentence of 10 years. Pursuant to a written plea agreement, the parties agreed that the court should impose a sentence between 48 and 66 months. In sentencing Lamell to the high end of the agreed-upon range, Judge Sessions considered, among other factors, Lamell’s criminal record and the gravity of the offense.
United States Attorney Tristram J. Coffin commended the efforts of the Bureau of Alcohol Tobacco Firearms and Explosives, the Barre City Police Department, and the Federal Bureau of Investigation for their hard work and coordinated efforts on this investigation. The prosecutor is Assistant United States Attorney Timothy C. Doherty, Jr. Lamell Newton is represented by Mark Kaplan.
United States Attorney Coffin noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood, a nationwide commitment to reduce gun crime in America. Led by the U.S. Attorney’s Office and the Bureau of Alcohol Tobacco, Firearms and Explosives, Project Safe Neighborhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who violate federal gun laws. For more information about Project Safe Neighborhood and Project Safe Vermont, please visit: www.psn.gov.
Army Soldier Pleads Guilty in Denver to Bribery Charges for Facilitating Thefts of Fuel in AfghanistanRead the Press Release
Former U.S. Army Specialist Stephanie Charboneau pleaded guilty today to bribery charges for her role in the theft of fuel at Forward Operating Base (FOB) Fenty, near Jalalabad, Afghanistan, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Charboneau, 34, of Fountain, Colo., pleaded guilty before U.S. District Judge Phillip A. Brimmer in the District of Colorado to one count of conspiracy to commit bribery and one substantive count of bribery.
According to court documents, from approximately February through May 2010, Charboneau was involved in overseeing the delivery of fuel from FOB Fenty to other military bases. As part of this process, documents generally described as transportation movement requests (TMRs) were created to authorize the movement of fuel.
Court documents state that Charboneau created fraudulent TMRs that purported to authorize the transport of fuel from FOB Fenty to other military bases, even though no legitimate fuel transportation was required. After the trucks were filled with fuel, the fraudulent TMRs were used by the drivers of the fuel trucks at FOB Fenty’s departure checkpoint in order to justify the trucks’ departures from FOB Fenty. In truth, the fuel was simply stolen.
Charboneau pleaded guilty to receiving payments from a representative of the trucking company in exchange for facilitating the theft of approximately 90 fuel trucks. According to court documents, the loss to the United States as a result of the theft was in excess of $1.5 million.
At sentencing, scheduled for Dec. 12, 2013, Charboneau faces a maximum penalty of five years in prison for conspiracy and 15 years in prison for bribery.
Charboneau’s plea is the fourth guilty plea arising from this investigation of fuel thefts at FOB Fenty. On Aug. 3, 2012, Jonathan Hightower, a civilian employee of a military contractor who had conspired with Charboneau, pleaded guilty to similar charges. On Oct.10, 2012, Christopher Weaver, who also conspired with Charboneau, pleaded guilty to fuel theft charges. Both Weaver and Hightower pleaded guilty in the District Court of Colorado. On Aug. 29, 2013, Sergeant Bilal Kevin Abduallah, who succeeded Charboneau at FOB Fenty, pleaded guilty in the Western District of Kentucky to fuel theft related charges.
This case was investigated by the Special Inspector General for Afghanistan Reconstruction; Department of the Army, Criminal Investigations Division; Defense Criminal Investigative Service; and FBI. This case is being prosecuted by Fraud Section Trial Attorney Mark H. Dubester of the Justice Department’s Criminal Division.
Alleged Bank Robber ChargedRead the Press Release
Marcus Akiem Ricketts, 36, of Boyertown, Pennsylvania was charged today by superseding indictment with armed bank robbery and using and carrying a firearm during a crime of violence, announced United States Attorney Zane David Memeger. These charges stem from four armed bank robberies. The indictment alleges Ricketts committed the following armed robberies: on June 8, 2010, at the Sovereign Bank, located at 258 East High Street, Pottstown, Pennsylvania; on January 24, 2012, at the Citizens Bank, located at 209 Lancaster Avenue, Devon, Pennsylvania; on April 12, 2012, at the First Niagara Bank, located at 502 State Avenue, Emmaus, Pennsylvania; and on July 2, 2012, at the Manufacturers and Traders Trust Company (“M&T Bank”), formerly located at 760 North Pottstown Pike, in Exton, Pennsylvania.
If convicted of all charges, Ricketts faces a maximum possible sentence of life imprisonment, with a mandatory minimum term of 82 years, five years of supervised release, a $2 million fine, and an $800 special assessment.This case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, the Chester County Sheriff’s Department, the Chester County Detectives, and the police departments for Easttown Township, Emmaus, Lower Merion, Pottstown, Uwchlan, Shillington Township, Warminster, and West Whiteland, Pennsylvania. In addition, the District Attorney’s offices for the counties of Berks, Bucks, Chester, Lehigh and Montgomery were also involved in the investigation. This case is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Alabama Man Pleads Guilty to Cashing <br /> Fraudlent Tax Refund ChecksRead the Press Release
David Haigler, of Montgomery County, Ala., pleaded guilty in U.S. District Court for the Middle District of Alabama today to one count of theft of public funds and to one count of passing U.S. Treasury checks with forged endorsements, the Justice Department, the Internal Revenue Service (IRS) and U.S. Secret Service announced today.
According to court documents, between November 2011 and July 2012, Haigler obtained 263 fraudulent U.S. Treasury refund checks and refund anticipation loan checks totaling $606,781.34. The refund checks were in the names of different individuals who had not authorized Haigler to cash them. Haigler cashed the refund checks at a store in Millbrook, Ala., by providing the store with copies of fictitious powers of attorney in the names of the individuals on the checks.
For his involvement in the scheme, Haigler faces a maximum potential sentence of 20 years in jail and a fine of up to $500,000.Trial Attorneys Jason Poole and Michael Boteler of the Justice Department’s Tax Division prosecuted the case. Special Agents of IRS - Criminal Investigation and the U.S. Secret Service conducted the investigation.
Adams Thermal Systems to Pay $1.33 Million to Resolve OSHA Citations, Criminal Penalties in 2011 Death of Worker at South Dakota PlantRead the Press Release
CANTON, S.D. – Adams Thermal Systems Inc. has entered into a deferred prosecution agreement with the U.S. Attorney’s Office and the U.S. Department of Labor’s Occupational Safety and Health Administration to pay more than $1.33 million to resolve criminal penalties and OSHA fines levied as a result of the death of a worker on Nov. 7, 2011, in the company’s Canton plant. The U.S. Attorney’s Office filed the Deferred Prosecution Agreement on Sept. 5, 2013, and has asked that it be approved by the U.S. District Court for the District of South Dakota.
Under the terms of the agreement, the company will pay the worker’s surviving spouse $450,000, a criminal fine of $450,000 and the full OSHA fine of $435,000stemming from the regulatory violations that caused the fatality and additional violations discovered in subsequent inspections.
OSHA’s investigation found the worker was fatally crushed in a machine used to make radiator cores, after management instructed and authorized workers to bypass the manufacturer’s barrier guard in order to adjust the machine to keep it running. OSHA also conducted two concurrent safety and health investigations at the company in February 2012, which resulted in 66 violations.
“Adams Thermal failed to provide a safe workplace, and those conditions ultimately took the life of a worker. There is no excuse for an employer to compromise safety to keep production running,” said Assistant Secretary of Labor for Occupational Safety and Health Dr. David Michaels. “The Department of Labor has worked diligently with the Office of the United States Attorney for South Dakota to resolve this case and provide justice to the family of this worker. No one should ever lose their life for a job.”
Because the willful violations cited by OSHA caused the worker’s death, the case was referred to the U.S. Attorney for the District of South Dakota in November 2012 for criminal prosecution. Criminal Chief Dennis Holmes handled the case for the U.S. Attorney’s Office.
“The purpose of this settlement, which was reached after discussions with the victim’s family, is to provide justice to the family and deter similar corporate conduct in the future,” said U.S. Attorney Brendan Johnson. “The right of South Dakotans to a safe work environment isn’t optional, it is fundamental. I commend OSHA for their investigative efforts, and I am pleased with the settlement that has been reached.”
The agreement resolves both of the OSHA civil cases, and includes significant enhanced abatement of violations by the company. Adams Thermal Systems agreed to: increase the size of its safety and health department; implement a companywide safety and health program; provide incentives for managers and workers to report safety issues and make safety recommendations; and to hire a qualified third-party to review guarding and lockout/tagout for all plant machinery and to audit the abatement of all identified hazards. The company will also report quarterly to OSHA for three years on safety progress and reportable illnesses and injuries, and redesign the safety systems and procedures on the radiator core machine involved in the fatality.
The agreement will resolve three willful citations issued for $210,000 on April 26, 2012, as a result of the fatality investigation. The settlement also resolves the additional citations issued on August 2012, following two concurrent comprehensive safety and health inspections, with proposed penalties of $225,000. The comprehensive safety and health cases involved 58 serious violations and eight other-than-serious violations addressing unlabeled piping systems; obstructions in aisles and passageways; unguarded machinery; crane and hoist hazards; improper exits; electrical hazards and exposures to chemicals, dust, and noise.
OSHA placed Adams Thermal Systems, which manufactures engine cooling systems for off-highway and on-highway vehicles, in its Severe Violator Enforcement Program in August 2012 as a result of these inspections. The program mandates targeted follow-up inspections to ensure compliance with the law. The program focuses on recalcitrant employers that endanger workers by committing willful, repeat or failure-to-abate violations.
To ask questions, obtain compliance assistance, file a complaint or report workplace hospitalizations, fatalities or situations posing imminent danger to workers, the public should call OSHA’s toll-free hotline at 800-321-OSHA (6742).
Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA’s role is to ensure these conditions for America’s working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit http://www.osha.gov.
Wednesday 4 September 2013
“Checkbook Bandit” Sentenced to 90 Months in Federal Prison for Committing Five Bank Robberies in Three Months in Desoto, TexasRead the Press Release
DALLAS — The bank robber who was dubbed the “Checkbook Bandit” by the FBI, as he used a checkbook registry to display his demand notes in the robberies, Victor Lemond Williams, 43, of Dallas, was sentenced this morning by U.S. District Judge Ed Kinkeade to 90 months in federal prison. Williams has been in custody since his arrest in January 2012. U.S. Attorney Sarah R. Saldaña, of the Northern District of Texas, made the announcement today.
Williams pleaded guilty to an indictment charging five counts of bank robbery, admitting that he committed the following five bank robberies in Desoto, Texas:
- Chase Bank September 19, 2011
721 W. Beltline Road December 5, 2011
December 23, 201
- Bank of America September 22, 2011
931 W. Beltline Road January 3, 2012
The case was investigated by the Desoto Police Department and the FBI. Assistant U.S. Attorney Taly Haffar was in charge of the prosecution.
- Chase Bank September 19, 2011
Wolcott Man Sentenced to 26 Months in Federal Prison for Role in Illegal Campaign Contribution SchemeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, announced that GEORGE TIRADO, 36, of Wolcott, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 26 months of imprisonment, followed by one year of supervised release for his participation in a scheme to direct illegal campaign contributions into the campaign of a candidate for the U.S. House of Representatives. TIRADO was also ordered to pay a $5,000 fine. At the time of the offense, TIRADO was the co-owner of a Roll Your Own (“RYO”) smoke shop while also serving as a detective with the Waterbury Police Department.
“A substantial prison term is warranted for any individual who violates federal campaign finance laws in order to influence elected officials for personal gain,” stated Acting U.S. Attorney Daly. “That this defendant was a veteran police detective who ignored his oath and broke the law makes this sentence even more appropriate.”
“Today’s sentence sends a clear message to those of us who are sworn to uphold the law, that no one is above the law,” stated FBI Special Agent in Charge Mertz. “It should be an honor and privilege to protect and serve the public. Instead, George Tirado betrayed his oath of honor when he conspired with others to direct illegal campaign contributions. This conduct threatens to undermine both the public’s faith in the election process and in law enforcement.”
According to court documents and statements made in court, in August 2011, the State of Connecticut applied for a court order enjoining RYO smoke shops from continuing to operate without complying with state law governing tobacco manufacturers. RYO smoke shops are retail businesses that sell loose smoking tobacco and cigarette-rolling materials and offer customers the option of paying a “rental” fee to insert the loose tobacco and the rolling materials into a RYO machine, which is capable of rapidly rolling large quantities of cigarettes. Customers did not pay a tax on the RYO cigarettes when rolled by the RYO machines, in contrast to cigarettes purchased over-the-counter.
TIRADO and Paul Rogers co-owned Smoke House Tobacco, a RYO smoke shop with two locations in Waterbury. Fearing that the Connecticut General Assembly would enact legislation harmful to RYO smoke shop owners’ business interests during the 2012 legislative session, TIRADO, Rogers, Harry Raymond “Ray” Soucy and others engaged in a scheme to direct conduit campaign contributions into the campaign of Christopher Donovan, a candidate for the U.S. House of Representatives. At the time, Donovan was also the Speaker of the Connecticut House of Representatives. As part of the scheme, the co-conspirators recruited multiple individuals to serve as conduit contributors to the campaign. These individuals permitted checks to be written in their own names to the campaign and were reimbursed with cash, thereby concealing the fact that RYO smoke shop owners were contributing to the campaign.
On November 15, 2011, TIRADO obtained a signed blank check from one of his smoke shop employees. TIRADO then made the check payable to the campaign in the amount of $2,500, and assured the employee that she would be reimbursed. That same evening, TIRADO attended a campaign fundraising event where he completed a contribution form in the employee’s name. The contribution form contained a representation that the contribution was being funded by the individual named on the form. He then provided the check to Rogers who delivered it to a campaign employee.
The next morning, TIRADO provided another conduit contribution in the amount of $2,500 to Soucy prior to a meeting that they had scheduled with the candidate. Soucy then gave the check to a campaign employee.
On November 21, 2011, TIRADO deposited $2,500 in cash into the checking account of the employee who had served as a conduit contributor on November 15. The $2,500 came from the business proceeds of Smoke House Tobacco.
In December 2011, Rogers, Soucy and others attended another fundraising event and delivered two more $2,500 conduit contributions to the campaign.
On approximately January 31, 2012, the Christopher Donovan for Congress campaign committee submitted to the Federal Election Commission (“FEC”) a report of the committee’s receipts and disbursements for the period October 1, 2011 through December 31, 2011. The report falsely stated the source and amount of the four $2,500 contributions that were received and deposited by the campaign committee during that time period.
In the spring of 2012, the conspirators made additional illegal campaign contributions totaling $17,500.
During today’s sentencing, Judge Arterton also found that TIRADO lied to FBI special agents investigating this scheme during an interview that was conducted on June 4, 2012.On April 19, 2013, TIRADO pleaded guilty to one count of conspiracy to make false statements to the FEC and to impede the FEC’s enforcement of federal campaign finance laws.
Rogers, Soucy and five others, including two employees of the Donovan for Congress campaign, have also been convicted of charges stemming from this scheme.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Eric J. Glover.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Vincent Lee Garner Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 28, 2013, before Chief U.S. District Judge Dana L. Christensen, VINCENT LEE GARNER, age 48, was sentenced to a term of:
Prison: 38 months
Special Assessment: $100
Supervised Release: 3 years
GARNER was sentenced in connection with his guilty plea to failure to register as a sexual offender.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
From the fall of 2011 through October 2012, GARNER had traveled to Montana from out of state and failed to register as a sex offender once he arrived in Montana. GARNER was required to register as a sex offender as a result of a 1999 sex offense conviction from Oregon.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that GARNER will likely serve all of the time imposed by the court. In the federal system, GARNER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the United States Marshals Service.
Valley Center Man Sentenced to 11+ Years for Bank RobberyRead the Press Release
WICHITA, KAN. -- A Valley Center man has been sentenced to federal prison for a 2012 bank robbery, U.S. Attorney Barry Grissom said today.
Dlaney M. Nixon, 24, Valley Center, Kan., was sentenced to 140 months in federal prison. He pleaded guilty to one count of bank robbery. Nixon and two other defendants -- Henry J. Adams, III and Terry G. Revels -- were indicted in October 2012. Court documents alleged that on Oct. 15, 2012, the men robbed the Intrust Bank at 142 N. Ash in Valley Center. Nixon and Revels entered the bank wearing ski masks and hoodies and carrying black bags, Johnson waited outside in a white Cadillac to act as a lookout. They took money from bank tellers’ drawers and fled the bank.
Officers responding to the robbery located the Cadillac near 81st North and West Street in Valley Center and chased the car several miles before it stopped on Sheriden Court and the robbers fled on foot in different directions.
Nixon was arrested following a foot chase after he fled the car.
Co-defendant Terry G. Revels was sentenced to 235 months in prison.
Co-defendant Henry J. Adams, III, was sentenced to 140 months in prison.Grissom commended the agencies that took part in the investigation including the Valley Center Police Department, the FBI, the Sedgwick County Sheriff’s Office, the Wichita Police Department, the Kansas Highway Patrol, the Park City Police Department, the Maize Police Department, the Kechi Police Department, the Haysville Police Department, the Colwich Police Department, the Andale Police Department, the Mount Hope Police Department and the State Parole Office, as well as Assistant U.S. Attorney David Lind, who prosecuted the case.
United States, Utah, Juab County and Environmental Groups Reach Settlement over Use of Public Roads on Federal LandsRead the Press Release
The U.S. District Court in Utah has concluded proceedings and approved a settlement of a lawsuit involving three claimed highway rights-of-way on Bureau of Land Management (BLM) administered public land adjacent to and within the Deep Creek Mountains Wilderness Study Area (WSA). The court approved the settlement between the United States, the state of Utah and Juab County, and the Southern Utah Wilderness Alliance, The Wilderness Society, and the Sierra Club.
Under the settlement, negotiated by the Justice Department on behalf of the U.S. Department of the Interior and the BLM, public highway rights-of-way are recognized in those segments of the three claimed routes for which evidence of historic use satisfies the requirements of R.S. 2477. R.S. 2477 is a provision enacted by Congress in 1866 that provided for public access across public lands by granting rights-of-way for the construction of highways. R.S. 2477 was repealed in 1976, but such rights-of-way that were established before its repeal are considered to be valid existing rights.
The terms of the settlement state that the roads shall not be developed, widened or otherwise enlarged, although they may be repaired if necessary. In addition, the public may once again access the clearing known as Camp Ethel at the end of the Granite Canyon Road. The parties also agreed that vehicle travel on some segments of the roads is subject to seasonal restrictions, and that Juab County would adopt an ordinance requiring vehicles to stay on the roads and not travel past their ending points, which the County passed in February 2013, and for the County to help patrol the roads on high-use weekends.
BLM has agreed to conduct monitoring concerning water quality in Granite Canyon Creek and other resources, and the County and BLM will continue to work together in balancing needs for public access and protection of the WSA and its resources. The State and Juab County have agreed not to claim other R.S. 2477 rights-of-way in the WSA and will limit their claims to rights-of-way on federal lands adjoining the WSA to twelve designated routes.
“The agreement is the first to settle longstanding claims by the state and counties of Utah for highway rights-of-way on federal lands, and does so in an environmentally sound and responsible manner,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “This landmark settlement will recognize three historic rights-of-way claimed by Utah and Juab County that will remain in their primitive, undeveloped condition, while providing ample protection for the unique environment of the Deep Creek Mountains Wilderness Study Area.”
“I am very pleased that all the parties involved were able to work together to resolve this issue and settle this lawsuit in a way that promotes public interests and protects the resources on our public lands,” said Juan Palma, BLM Utah State Director. “This settlement serves as a tangible reminder that certain R.S. 2477 issues can be resolved through good-faith negotiations and cooperation.”
The Deep Creek Mountains WSA, spread across 68,910 acres in Tooele and Juab Counties, is an extremely remote location known for its combination of biological and geological wonders. Stretching 32 miles in length and 15 miles at its widest point, the area is considered an “island” ecosystem due to its distance from inhabited areas. It is home to alpine meadows, evergreen and aspen forests, and habitats for the peregrine falcon and six other sensitive bird species. Some of the nine perennial streams that run through the WSA are populated by a pure strain of the Bonneville cutthroat trout, a state sensitive species. It also features impressive geological formations such as quartzite cliffs.
The State and Juab County filed the lawsuit in 2005 pursuant to the federal Quiet Title Act, and claimed that they held public highway rights-of-way, under R.S. 2477, to segments of three primitive roads known as the Trout Creek Road, Toms Creek Road and Granite Canyon Road.
The three environmental groups were allowed to intervene as defendants in the lawsuit. The parties engaged in long-term, good faith negotiations that resulted in the detailed and comprehensive settlement that has now been approved by the Federal District Court, and which dismisses the lawsuit.
The settlement underscores that representatives of the federal government, the State of Utah and its counties, and the environmental community can, through good-faith negotiations, resolve R.S. 2477 claims. This is especially important given that in the last few years, the State and counties across Utah have filed over 25 similar Quiet Title Act lawsuits asserting claims for approximately 12,000 R.S. 2477 rights-of-way on federal public lands across the State.
United States Reaches Settlement with Safeway to Reduce Emissions of Ozone-Depleting Substances NationwideRead the Press Release
In a settlement agreement with the United States, Safeway, the nation’s second largest grocery store chain, has agreed to pay a $600,000 civil penalty and implement a corporate-wide plan to significantly reduce its emissions of ozone-depleting substances from refrigeration equipment at 659 of its stores nationwide, estimated to cost approximately $4.1 million, announced the U.S. Environmental Protection Agency (EPA) and Department of Justice today.
The settlement involves the largest number of facilities ever under the Clean Air Act (CAA)’s regulations governing refrigeration equipment.
The settlement resolves allegations that Safeway violated the federal CAA by failing to promptly repair leaks of HCFC-22, a hydro-chlorofluorocarbon that is a greenhouse gas and ozone-depleting substance used as a coolant in refrigerators, and failed to keep adequate records of the servicing of its refrigeration equipment. Safeway will now implement a corporate refrigerant compliance management system to comply with stratospheric ozone regulations. In addition, Safeway will reduce its corporate-wide average leak rate from 25 percent in 2012 to 18 percent or below in 2015. The company will also reduce the aggregate refrigerant emissions at its highest-emission stores by 10 percent each year for three years.
“Safeway’s new corporate commitment to reduce air pollution and help protect the ozone layer is vital and significant,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Fixing leaks, improving compliance and reducing emissions will make a real difference in protecting us from the dangers of ozone depletion, while reducing the impact on climate change.”
“This first-of-its-kind settlement will benefit all Americans by cutting emissions of ozone-depleting substances across Safeway’s national supermarket chain,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “It can serve as a model for comprehensive solutions that improve industry compliance with the nation’s Clean Air Act.”
HCFC-22 is up to 1,800 times more potent than carbon dioxide in terms of global warming emissions. The measures that Safeway has committed to are expected to prevent over 100,000 pounds of future releases of ozone-depleting refrigerants that destroy the ozone layer.
EPA regulations issued under Title VI of the CAA require that owner or operators of commercial refrigeration equipment that contains over 50 pounds of ozone-depleting refrigerants, and that has an annual leak rate greater than 35 percent repair such leaks within 30 days.
HCFCs deplete the stratospheric ozone layer, which allows dangerous amounts of cancer-causing ultraviolet rays from the sun to strike the earth, leading to adverse health effects that include skin cancers, cataracts, and suppressed immune systems. Pursuant to the Montreal Protocol, the United States is implementing strict reductions of ozone-depleting refrigerants, including a production and importation ban by 2020 of HCFC-22, a common refrigerant used by supermarkets.
The settlement is part of EPA’s national enforcement initiative to control harmful air pollution from the largest sources of emissions, including large grocery stores.
Corporate commitments to reduce emissions from refrigeration systems have been increasing in recent years. EPA’s GreenChill Partnership Program works with food retailers to reduce refrigerant emissions and decrease their impact on the ozone layer and climate change by transitioning to environmentally friendlier refrigerants, using less refrigerant and eliminating leaks, and adopting green refrigeration technologies and best environmental practices.
Safeway, headquartered in Pleasanton, Calif., is the second largest grocery chain in North America with 1,412 stores in the United States and 2012 revenues of $44.2 billion. Safeway operates companies under the banner of Vons in southern California and Nevada, Randalls in Texas, and Carrs in Alaska. The settlement covers 659 Safeway stores – all Safeway stores in the United States that have commercial refrigeration equipment regulated by the CAA except for those stores in Safeway’s Dominick’s Division, which was the subject of a 2004 settlement with the United States.
The settlement was lodged today in the U.S. District Court for the Northern District of California, and is subject to a 30-day public comment period and final court approval. It will be available for viewing at www.justice.gov/enrd/Consent_Decrees.
For more information: http://www2.epa.gov/enforcement/safeway-inc-clean-air-act-settlement.
Two Romanian Nationals Sentenced to Prison for Scheme to Steal Payment Card DataRead the Press Release
Adrian-Tiberiu Oprea, 29, of Constanta, Romania, and Iulian Dolan, 28, of Craiova, Romania, were sentenced today to serve 15 years and seven years in prison, respectively, for participating in an international, multimillion-dollar scheme to remotely hack into and steal payment card data from hundreds of U.S. merchants’ computers, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney John P. Kacavas of the District of New Hampshire; and Holly Fraumeni, Resident Agent in Charge of the U.S. Secret Service, Manchester, N.H., Resident Office.
On May 7, 2013, Oprea, who was extradited to the United States from Romania, pleaded guilty to one count of conspiracy to commit computer fraud, one count of conspiracy to commit wire fraud and two counts of conspiracy to commit access device fraud. On Sept. 17, 2012, Dolan pleaded guilty to one count of conspiracy to commit computer fraud and two counts of conspiracy to commit access device fraud.
Court documents state that, from approximately 2009 to 2011, Oprea conspired with Dolan and Cezar Butu, 27, of Ploiesti, Romania, to hack into hundreds of computers located in the United States to steal credit, debit and payment account numbers and associated data (collectively “payment card data”) that belonged to U.S. cardholders.
According to court documents, Oprea and Dolan remotely hacked into hundreds of U.S. merchants’ point-of-sale (POS) or “check out” computer systems, where customers’ payment card data was electronically stored. Specifically, Oprea, who was the leader of the scheme, and Dolan, who was his trusted aide, first used the Internet to identify U.S.-based vulnerable POS systems. After identifying a vulnerable system, Oprea and Dolan would gain access and install software programs called “keystroke loggers” (or “sniffers”) onto the POS systems. These programs would record, and then store, all of the data that was keyed into or swiped through the merchants’ POS systems, including customers’ payment card data.
Oprea and Dolan retrieved the card data and then electronically transferred it to various electronic storage locations (“dump sites”) that Oprea had set up. Oprea later attempted to use the stolen payment card data to make unauthorized charges on, or transfers of funds from, the accounts. He also attempted to transfer the stolen payment card data to other co-conspirators for them to use in a similar manner. During the course of the conspiracies, the co-conspirators hacked into several hundred U.S. merchants’ POS systems, including 250 Subway restaurant franchises, and stole payment card data belonging to more than 100,000 U.S. cardholders. Their criminal conduct caused losses of at least $17.5 million in unauthorized charges and remediation expenses.The case was investigated by the U.S. Secret Service, with assistance from the New Hampshire State Police and Romanian authorities.
The case is being prosecuted by Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire. Significant assistance was provided by the Criminal Division’s Office of International Affairs.
Two Romanian Nationals Sentenced to Prison for Scheme to Steal Payment Card DataRead the Press Release
WASHINGTON – Adrian-Tiberiu Oprea, 29, of Constanta, Romania, and Iulian Dolan, 28, of Craiova, Romania, were sentenced today to serve 15 years and seven years in prison, respectively, for participating in an international, multimillion-dollar scheme to remotely hack into and steal payment card data from hundreds of U.S. merchants’ computers, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney John P. Kacavas of the District of New Hampshire; and Holly Fraumeni, Resident Agent in Charge of the U.S. Secret Service, Manchester, N.H., Resident Office.
On May 7, 2013, Oprea, who was extradited to the United States from Romania, pleaded guilty to one count of conspiracy to commit computer fraud, one count of conspiracy to commit wire fraud and two counts of conspiracy to commit access device fraud. On Sept. 17, 2012, Dolan pleaded guilty to one count of conspiracy to commit computer fraud and two counts of conspiracy to commit access device fraud.
Court documents state that, from approximately 2009 to 2011, Oprea conspired with Dolan and Cezar Butu, 27, of Ploiesti, Romania, to hack into hundreds of computers located in the United States to steal credit, debit and payment account numbers and associated data (collectively “payment card data”) that belonged to U.S. cardholders.
According to court documents, Oprea and Dolan remotely hacked into hundreds of U.S. merchants’ point-of-sale (POS) or “check out” computer systems, where customers’ payment card data was electronically stored. Specifically, Oprea, who was the leader of the scheme, and Dolan, who was his trusted aide, first used the Internet to identify U.S.-based vulnerable POS systems. After identifying a vulnerable system, Oprea and Dolan would gain access and install software programs called “keystroke loggers” (or “sniffers”) onto the POS systems. These programs would record, and then store, all of the data that was keyed into or swiped through the merchants’ POS systems, including customers’ payment card data.
Oprea and Dolan retrieved the card data and then electronically transferred it to various electronic storage locations (“dump sites”) that Oprea had set up. Oprea later attempted to use the stolen payment card data to make unauthorized charges on, or transfers of funds from, the accounts. He also attempted to transfer the stolen payment card data to other co-conspirators for them to use in a similar manner. During the course of the conspiracies, the co-conspirators hacked into several hundred U.S. merchants’ POS systems, including 250 Subway restaurant franchises, and stole payment card data belonging to more than 100,000 U.S. cardholders. Their criminal conduct caused losses of at least $17.5 million in unauthorized charges and remediation expenses.The case was investigated by the U.S. Secret Service, with assistance from the New Hampshire State Police and Romanian authorities.
The case is being prosecuted by Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire. Significant assistance was provided by the Criminal Division’s Office of International Affairs.
Two Patient Recruiters of Miami Home Health Company<br /> Plead Guilty in $48 Million Health Care Fraud SchemeRead the Press Release
Two patient recruiters of a Miami health care company pleaded guilty late yesterday for their participation in a $48 million home health Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; and Special Agent in Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Elizabeth Monteagudo, 33, and Cristobal Gonzalez, 39, both of Miami, pleaded guilty on Sept. 3, 2013, before U.S. District Judge Joan A. Lenard to one count each of conspiracy to receive health care kickbacks. Monteagudo also pleaded guilty to receipt of kickbacks in connection with a federal health care program. Both charges carry a maximum penalty of five years in prison, and sentencing for both defendants is scheduled for Dec. 2, 2013.
According to court documents, Monteagudo and Gonzalez were patient recruiters who worked for Caring Nurse Home Health Care Corp., and Gonzalez also worked for Good Quality Home Health Care, Inc. Caring Nurse and Good Quality were Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries.
According to court documents, from approximately January 2009 through approximately June 2011, Monteagudo and Gonzalez would recruit patients for Caring Nurse and/or Good Quality and would solicit and receive kickbacks and bribes from the owners and operators of Caring Nurse and/or Good Quality in return for allowing the agency to bill the Medicare program on behalf of the recruited patients. These Medicare beneficiaries were billed for home health care and therapy services that were medically unnecessary and/or not provided.Monteagudo also admitted to her involvement with $7 million in fraudulent billings for Starlite Home Health Agency Inc., which she owned and operated.
In a related case, on Feb. 27, 2013, Rogelio Rodriguez and Raymond Aday, the owners and operators of Caring Nurse and Good Quality, were sentenced to serve 108 and 51 months in prison, respectively. Their sentencings followed their December 2012 guilty pleas each to one count of conspiracy to commit health care fraud charged in an October 2012 indictment, which charged that from approximately January 2006 through June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or not provided. Medicare actually paid approximately $33 million for these fraudulent claims.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Two Patient Recruiters of Miami Home Health Company Plead Guilty in $48 Million Health Care Fraud SchemeRead the Press Release
Two patient recruiters of a Miami health care company pleaded guilty late yesterday for their participation in a $48 million home health Medicare fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; and Special Agent in Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Elizabeth Monteagudo, 33, and Cristobal Gonzalez, 39, both of Miami, pleaded guilty on Sept. 3, 2013, before U.S. District Judge Joan A. Lenard to one count each of conspiracy to receive health care kickbacks. Monteagudo also pleaded guilty to receipt of kickbacks in connection with a federal health care program. Both charges carry a maximum penalty of five years in prison, and sentencing for both defendants is scheduled for Dec. 2, 2013.
According to court documents, Monteagudo and Gonzalez were patient recruiters who worked for Caring Nurse Home Health Care Corp., and Gonzalez also worked for Good Quality Home Health Care, Inc. Caring Nurse and Good Quality were Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries.
According to court documents, from approximately January 2009 through approximately June 2011, Monteagudo and Gonzalez would recruit patients for Caring Nurse and/or Good Quality and would solicit and receive kickbacks and bribes from the owners and operators of Caring Nurse and/or Good Quality in return for allowing the agency to bill the Medicare program on behalf of the recruited patients. These Medicare beneficiaries were billed for home health care and therapy services that were medically unnecessary and/or not provided.
Monteagudo also admitted to her involvement with $7 million in fraudulent billings for Starlite Home Health Agency Inc., which she owned and operated.
In a related case, on Feb. 27, 2013, Rogelio Rodriguez and Raymond Aday, the owners and operators of Caring Nurse and Good Quality, were sentenced to 108 and 51 months in prison, respectively. Their sentencings followed their December 2012 guilty pleas each to one count of conspiracy to commit health care fraud charged in an October 2012 indictment, which charged that from approximately January 2006 through June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or not provided. Medicare actually paid approximately $33 million for these fraudulent claims.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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.
Two More Defendants Plead Guilty in Manhattan Federal Court to Participating in Gambling Rings Connected to Organized CrimeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that EDWIN TING and JUSTIN SMITH pled guilty today in Manhattan federal court for their respective roles in high-stakes illegal gambling businesses connected to organized crime enterprises. TING pled guilty before U.S. District Court Judge Jesse M. Furman to conducting an illegal gambling business, an illegal poker game. SMITH pled guilty before Judge Furman to accepting a financial instrument in connection with unlawful Internet gambling, an illegal sportsbook.
TING and SMITH were charged in April 2013 in a 34-defendant indictment charging members and associates of two Russian-American organized crime enterprises with various crimes including racketeering, money laundering, extortion, and various gambling offenses.
Manhattan U.S. Attorney Preet Bharara said: “Edwin Ting and Justin Smith ran high-stakes poker and sportsbook operations, respectively, that handled many millions of dollars in illegal gambling. They were part of an underground enterprise trying to be invisible to law enforcement. Their guilty pleas are an important step toward the resolution of this case.”
According to the Indictment, other documents filed in this case, and statements made at various conferences in this case:
TING ran a high-stakes illegal poker game in New York City from 2010 through 2013. At these games, the pots frequently reached tens of thousands of dollars or more. The operators of these games, including TING, collected percentages of the pots known as “rakes.” These poker games employed at least five or more people to assist with the operation of the games, payments of debts, and collection of debts.
SMITH assisted Hillel Nahmad, Illya Trincher, and others in operating their own high-stakes sportsbook in New York that catered to millionaires and billionaires. Those clients typically placed bets online through various accounts maintained on gambling websites that were operating illegally in the United States. Tens of millions of dollars in bets were placed through those online accounts each year.
TING and SMITH each face a maximum sentence of five years in prison and three years of supervised release. As part of his plea agreement, TING agreed to forfeit $2,000,000 to the United States. As part of his plea agreement, SMITH agreed to forfeit $500,000 to the United States. TING and SMITH are both scheduled to be sentenced by Judge Furman on January 7, 2014 at 2:30 p.m. and 3:30 p.m., respectively.
TING and SMITH are the fourth and fifth defendants to plead guilty in the case. The following defendants have previously pled guilty and will also be sentenced by Judge Furman:
- Bryan Zuriff pled guilty on July 26, 2013 and is scheduled to be sentenced on November 25, 2013 at 3:00 p.m.;
- William Barbalat pled guilty on August 14, 2013 and is scheduled to be sentenced on December 16, 2013 at 3:30 p.m.; and
- Kirill Rapoport pled guilty on August 16, 2013 and is scheduled to be sentenced on December 18, 2013 at 3:00 p.m.
The charges against the remaining 29 defendants are merely accusations, and these defendants are presumed innocent unless and until proven guilty
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, the New York City Police Department, and the Internal Revenue Service, Criminal Investigation.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Harris M. Fischman, Joshua A. Naftalis, Peter Skinner, and Kristy J. Greenberg of the Organized Crime Unit are in charge of the prosecution. Assistant U.S. Attorneys Alexander Wilson and Christine Magdo of the Office’s Asset Forfeiture Unit are responsible for the forfeiture aspects of the case.
U.S. v. Alimzhan Tokhtakhounov, et al. Indictment
Two Corporate Execs Sentenced to Federal Prison in $630,000 Tax Evasion SchemeRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin announced today that two top senior executives of an employment staffing agency that operated in West Virginia were sentenced to prison for failing to pay more than $630,000 in federal employment taxes. Daniel Hovis, owner and president of Career Search One, Inc., was sentenced to two years in prison. Hovis, 60, of Whittier, NC, previously pleaded guilty in May for failing to pay trust fund taxes to the Internal Revenue Service (IRS). The corporation’s vice president and director of counseling, Janice Hensley, 62, of Charleston, was sentenced today to one year and eight months in prison. Hensley also previously pleaded guilty in May to federal tax evasion.
The sentences were handed down by United States District Judge Thomas E. Johnston in Charleston. Hovis and Hensley together failed to pay more than $600,000 in federal employment taxes that were owed to the IRS.
From 2004 through the first quarter of 2010, Hovis and Hensley withheld trust fund taxes from many employees’ paychecks. The trust fund taxes were monies that were owed to the IRS. Hovis and Hensley each failed to report or pay over trust fund taxes that they had previously withheld from employees’ wages. Trust fund taxes are withheld federal income and Federal Insurance Contribution Act (“FICA”) taxes, which also include Social Security and Medicare taxes. Career Search One, Inc. only partially paid these taxes.
Career Search One, Inc. specialized in providing employees to client businesses for a fee. The corporation’s primary bookkeeping offices were based in Charleston and Wheeling, West Virginia. Hovis and Hensley both worked out of the Charleston location.
From 2004 through the first quarter of 2010, Hovis and Hensley failed to report and pay over approximately $630,158.94 in trust fund taxes to the IRS on behalf of Career Search One, Inc.’s employees. Instead, Hovis and Hensley used the monies for personal expenses. Both executives knew that the corporate funds should have been used for the payment of trust fund taxes.
At sentencing, the Court ordered the defendants to pay restitution in the amount of $630,158.94.
The Internal Revenue Service’s Criminal Investigative Division conducted the investigation. Assistant United States Attorney Meredith George Thomas handled the prosecutions.
Two Area Women Convicted in Home Health Services ConspiracyRead the Press Release
CORPUS CHRISTI, Texas - Sylvia Salinas Ramirez, of Driscoll, and Debra Jean Velasquez, of Robstown, have been convicted of wire fraud and conspiring to do so as part of a scheme to defraud the Texas Medicaid program through fraudulent home health billings, United States Attorney Kenneth Magidson announced today along with Texas Attorney General Greg Abbott.
Ramirez, 52, and Velasquez, 41, were charged in a 14-count federal indictment returned Wednesday, May 8, 2013. Today, they appeared before U.S. District Judge Nelva Gonzales Ramos and entered pleas of guilty to conspiring to submit false and fraudulent bills to the Texas Medicaid Program by wire transmissions as well as wire fraud for using interstate wire transmissions to bill.
The two women admitted that from or about Aug. 1, 2009, through on or about June 15, 2010, they were employed by the Corpus Christi office of MRNG Inc. doing business as Caring Touch Home Health. During that time, they conspired to submit false and fraudulent bills through wire transmissions to the Texas Medicaid program and the Medicaid funded managed care organizations known as Evercare of Texas LLC and Superior Health Plan Inc. for home health services that had not been provided. Ramirez and Velasquez admitted they created false and fraudulent time sheets for former Caring Touch employees for home health services that had not been provided and then fraudulently billed Medicaid, Evercare and Superior in the name of Caring Touch for those non-existent services. They sent approximately 562 of those false and fraudulent bills by wire.
Ramirez and Velasquez also admitted that in order to personally profit from their fraudulent billings, they created phony payroll records from the fraudulent time sheet which they then sent to Caring Tough’s payroll staff. Ramirez and Velasquez then obtained the payroll checks generated from the false and fraudulent time records, forged the signatures of the former Caring Touch employees, then cashed the checks and divided the money among themselves. Caring Touch and the former employees whose names were used on the false time sheets and checks were not accused of any wrongdoing.
Ramirez and Velasquez admitted that as a result of their false and fraudulent claims, Texas Medicaid, Evercare and Superior paid the approximate aggregate sum of $155,127.72. As part of their pleas, the women have agreed to pay restitution in that amount.
Conspiracy to commit wire fraud and wire fraud each carry a maximum punishment of 20 years in federal prison without parole as well as a possible $250,000 fine. Judge Ramos has set sentencing Dec. 3, 2013. Ramirez and Velasquez were permitted to remain on bond pending that hearing.
The charges were the result of a joint investigation conducted by officers and agents of the Corpus Christi Police Department, the FBI, Department of Health and Human Services - Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Special Assistant United States Attorney Rex Beasley and Assistant United States Attorney Jeffery Preston are prosecuting the case.
Twenty-Four Nine Trey Gangster Bloods Gang Members & Associates Indicted for Racketeering, Sex Trafficking, Robbery, Cocaine Distribution, and Multiple Acts of ViolenceRead the Press Release
ALEXANDRIA, Va. – Twenty-four members and associates of the Nine Tray Gangsters, a subgroup, or “set” of the Bloods street gang, were named in an indictment, which was unsealed today. The indictment includes charges of conspiracy to commit racketeering, violence in aid of racketeering, conspiracy to commit sex trafficking, conspiracy to commit robbery, conspiracy to distribute 280 grams or more of crack cocaine, and multiple counts related to the possession and use of firearms.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Col. Edwin C. Roessler, Jr., Fairfax County Chief of Police made the announcement following the unsealing of the indictment.
“Organized crime threatens the safety of our communities,” said U.S. Attorney Neil H. MacBride. “Arresting, prosecuting, and dismantling vicious street gangs remains a top priority of my office and our law enforcement partners. We will continue to aggressively prosecute and eradicate these parasites from our communities. Today’s indictment is indicative of our commitment to this critical work.”
“Today’s arrests send a clear message that violent gangs have no place in our community,” said Assistant Director in Charge Parlave. “While you may not see violence on your neighborhood street, gang members attempt to rule through violence and intimidation, a dangerous mix for impressionable youth within our region. Together with our partners in Fairfax County, the Northern Virginia Regional Gang Task Force, and other law enforcement agencies, we will work to eradicate violent gangs and bring their members to justice.”
“Gang criminal activity will not be tolerated in Fairfax County and the Police Department will aggressively pursue the arrest of all involved in gang criminal enterprises. Protecting our great community is paramount,” said Chief Roessler. “We thank the United States Attorney’s Office for the Eastern District of Virginia for their partnership in combatting criminal gang violence with us in Fairfax County and nationally. This partnership, along with that of our many federal law enforcement partners, will endure to continue making Fairfax County a safe place to live, work, and visit.”
The following individuals are named in the indictment:
Thaddaeus Snow, a/k/a “Storm,” 23, of Manassas, Virginia, is charged with conspiracy to commit racketeering, violence in aid of racketeering, conspiracy to distribute crack cocaine, conspiracy to commit sex trafficking, conspiracy to commit robbery, and using and carrying a firearm during a crime of violence and in furtherance of a drug trafficking crime.
Curtis Martino, a/k/a “Curtis Dodd,” a/k/a “Red Rum,” 29, of Elkridge, Maryland, is charged with conspiracy to commit racketeering and conspiracy to distribute crack cocaine.
William Sykes, a/k/a “Black,” 29, of Bealeton, Virginia, is charged with conspiracy to commit racketeering, violence in aid of racketeering, conspiracy to distribute crack cocaine, conspiracy to commit sex trafficking, and using a firearm during a crime of violence.
George Williams, a/k/a “Champ,” 28, of Bealeton, Virginia, is charged with conspiracy to commit racketeering, violence in aid of racketeering, conspiracy to distribute crack cocaine, conspiracy to commit sex trafficking, and using a firearm during a crime of violence.
Markeith Kerns, a/k/a “LTK,” 20, of Summerduck, Virginia, is charged with conspiracy to commit racketeering, violence in aid of racketeering, conspiracy to distribute crack cocaine, conspiracy to commit sex trafficking, and using a firearm during a crime of violence.
Janee Yates, a/k/a “Alizia,” 23, of Warrenton, Virginia, is charged with conspiracy to commit racketeering, violence in aid of racketeering, conspiracy to distribute crack cocaine, and conspiracy to commit sex trafficking.
Deontae Holland, a/k/a “D-Boy,” 27, of Bealeton, Virginia, is charged with conspiracy to commit racketeering, conspiracy to distribute crack cocaine, and conspiracy to commit sex trafficking.
William Sharp Manning a/k/a “Ill Will,” 24, of Warrenton, Virginia, is charged with conspiracy to commit racketeering, conspiracy to distribute crack cocaine, and conspiracy to commit sex trafficking.
James Watson, a/k/a “Black Kat,” 34, of Gainesville, Virginia, is charged with conspiracy to commit racketeering, conspiracy to distribute crack cocaine, and conspiracy to commit sex trafficking.
Christopher Head a/k/a “Briss,” 25, of Washington, D.C., is charged with conspiracy to commit racketeering and conspiracy to distribute crack cocaine.
Nicole Yates a/k/a “Merlot,” 27, of Fairfax, Virginia, is charged with conspiracy to commit sex trafficking, conspiracy to commit robbery, and using a firearm during a crime of violence.
Candy Minor, 28, of Fredericksburg, Virginia, is charged with conspiracy to commit sex trafficking, conspiracy to commit robbery, and using a firearm during a crime of violence.
Kaleef Tweedy, a/k/a “Bloody Tweed,” 23, of Dumfries, Virginia, is charged with conspiracy to commit sex trafficking, conspiracy to commit robbery, and using a firearm during a crime of violence.
Justin Finley, a/k/a “J Mo,” 24, of Manassas, Virginia, is charged with conspiracy to distribute crack cocaine and conspiracy to commit sex trafficking.
Stephon Greene a/k/a “Blitz,” 21, of Manassas, Virginia, is charged with conspiracy to distribute crack cocaine and conspiracy to commit sex trafficking.
LaTonya Snow, a/k/a “Lady Dynasty,” 30, of Manassas, Virginia, is charged with conspiracy to commit sex trafficking.
Devante Jordan, a/k/a “Trey,” 21, of Alexandria, Virginia, is charged with conspiracy to commit robbery and using a firearm during a crime of violence.
Aayron Marshal, a/k/a “Mook ,” 23, of Warrenton, Virginia, is charged with conspiracy to distribute crack cocaine.
Joshua Pendleton Brooks a/k/a “Wacko,” 27, of Manassas, Virginia, is charged with conspiracy to distribute crack cocaine.
Lionel Ritchie, a/k/a “Boogie,” 29, of Remington, Virginia, is charged with conspiracy to distribute crack cocaine.
Jameel Aleem, a/k/a “Nino B,” 32, of Washington, D.C., is charged with conspiracy to distribute crack cocaine.
Antawn Minor, a/k/a “Noid,” 33, of Manassas, Virginia, is charged with conspiracy to distribute crack cocaine, possession of a firearm by a convicted felon, and carrying a firearm in furtherance of a drug trafficking crime.
Deyonka Gaskins, 29, of Manassas, Virginia, is charged with conspiracy to distribute crack cocaine.
Gracier Isique, 28, of Manassas, Virginia, is charged with conspiracy to distribute cocaine.
All of the defendants face a maximum penalty of life imprisonment if convicted.
According to the indictment, the Nine Trey Gangsters are a Bloods street gang set of the United Blood Nation that was founded in New York City in the early 1970’s. Thaddaeus Snow and Curtis Martino led two “line-ups” of the Nine Trey Gangsters which operated as a criminal enterprise in Virginia, the District of Columbia, and Maryland. The indictment alleges that from 2008 until the date of the indictment, Martino’s and Snow’s line-ups of Nine Trey gangsters engaged in racketeering activity involving the transportation and prostitution of women using force and coercion in Virginia, Maryland, North Carolina, New York, and elsewhere; the commission of robberies; and the distribution of cocaine, crack, marijuana, heroin, ecstasy, and prescription painkillers. The indictment also alleges that the Nine Trey Gangsters dealt in counterfeit United States currency and used counterfeit currency to finance wholesale drug purchases.
Further, the indictment alleges several acts of violence undertaken by gang members. On or about April 1, 2010, according to the Indictment, Snow directed Nine Trey Gangsters to give a female victim a “buck-fifty,” consisting of slashing the face with a knife from mouth to ear with the aim of requiring 150 stiches to close the wound, because the woman had stolen proceeds of the gang’s drug sales. The slashing was allegedly carried-out by defendants Janee Yates and William Sykes. The indictment also alleges that Nine Trey gangsters committed a shooting on April 12, 2010, after the shooting victims became involved in a dispute with one of the gang members, that defendants slapped, beat, and choked prostitutes when they refused to see customers or did not earn enough money, and that Nine Trey Gangsters also beat a fellow gang member to discipline him for trying to leave the gang.
The 24 defendants charged in this indictment brings the total number of Nine Trey Gangster gang members and associates recently charged in the Eastern District of Virginia to 32. On April 2, 2013, an indictment was filed in Richmond against eight Nine Trey Gangster gang members and associates charging them with Conspiracy to Distribute 280 grams or more of Crack Cocaine. All eight of those defendants have previously pleaded guilty to the drug conspiracy charge.
This case was investigated by the FBI’s Washington Field Office and the Fairfax County Police Department, with assistance from the Northern Virginia Regional Gang Task Force, Hampton Police Department, Fauquier County Sheriff’s Office, Manassas City Police Department, and the United States Marshal Service. Assistant United States Attorney Adam B. Schwartz is prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
This case is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation dubbed Operation “Ruby Red,” which has been focusing on the illegal distribution of narcotics by alleged organized crime members.
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.Trio Accused of Operating Fake ID Ring Plead GuiltyRead the Press Release
CHARLOTTESVILLE, VIRGINIA – The three Charlottesville residents accused of producing tens of thousands of fraudulent driver’s licenses and shipping them across the country pled guilty this morning in the United States District Court for the Western District of Virginia in Charlottesville.
Alan McNeil Jones, 31, Kelly Erin McPhee, 31, and Mark Guerin Bernardo, 34, all of Charlottesville, Va., waived their rights to be indicted and pled guilty this morning to a two-count Information. The three defendants each pled guilty to one count of conspiracy to commit identification document fraud and one count of aggravated identity theft.
“These three defendants developed a sophisticated scheme to produce and sell high-quality false identification documents throughout the nation,” United States Attorney Timothy J. Heaphy said today. “Their criminal enterprise was tremendously lucrative, generating profits of more than $3 million over several years. By producing and distributing these fraudulent identification documents, Mr. Jones and his co-conspirators endangered national security. Law enforcement personnel involved in this case will take every available step to recover these counterfeit driver’s licenses and ensure that they cannot be used to facilitate additional criminal activity.”
“The defendants in this case primarily used the U.S. Mail to facilitate their criminal scheme. Postal Inspectors were able to quickly identify the scheme and worked aggressively with our partnering law enforcement agencies and the U.S. Attorney's Office to locate the subjects involved and ultimately dismantle their criminal enterprise. Through cases like these, the Postal Inspection Service upholds it's long standing mission of protecting the public and preventing criminal misuse of the U.S. Mail,” said Keith A. Fixel, Inspector in Charge, U.S. Postal Inspection Service - Charlotte Division.
“Regardless of the reasons for seeking fraudulent documents, U.S. Immigrations and Customs Enforcement (ICE) Homeland Security Investigations (HSI) strives to detect, deter and disrupt individuals and organizations that present an active threat to national security or public safety, and who seek to undermine the integrity of the laws and regulations of the United States,” said Scot Rittenberg, Acting Special Agent in Charge, Washington. D.C. Field Office.
Today in District Court, Jones, McPhee and Bernardo admitted to conspiring to created high-quality fraudulent driver’s licenses out of the home they shared on Rugby Road in Charlottesville, Va. The conspiracy, which began in 2010 and operated under the name Novel Design, produced and sold more than 25,000 fraudulent driver’s licenses, primarily to college students, throughout the nation.
As part of the scheme, Jones paid commissions to students at the University of Virginia, and elsewhere, to refer his service to other students interested in obtaining fraudulent driver’s licenses. He also outsourced some of the manufacturing work to companies in Bangladesh and China.
During the entire period of time in which Novel Design was in operation, Jones, McPhee and Bernardo produced approximately 25,000 fraudulent driver’s licenses for customers. They charged anywhere from $75 to $125 per fake license and the three obtained more than $3 million from customers. To date, over $2.7 million in assets have been seized by law enforcement.
At the height of the conspiracy, Jones, McPhee and Bernardo, were able to create fraudulent driver’s licenses for the states of Arizona, Connecticut, Florida, Georgia, Illinois, Louisiana, Maryland, Maine, Mississippi, Montana, New Jersey, Pennsylvania, Ohio, Rhode Island, South Carolina, Tennessee and Virginia.
At sentencing, each defendant faces a maximum possible penalty of up to 15 years in federal prison on the conspiracy charge and a mandatory additional two-year sentence on the aggravated identify theft charge.
The investigation of the case was conducted by the Department of Homeland Security Investigations, the United States Postal Inspection Service and the Virginia State Police. Assisting in the investigation was the Homeland Security Investigations Laboratory, the United States Postal Inspection Service Laboratory, US Customs and Border Protection, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Albemarle County Police Department, The Charlottesville Police Department, the State Attorney General’s Office for the Commonwealth of Virginia, the United States Secret Service and the Federal Bureau of Investigation, the College of Charleston, the Texas Highway Patrol and the University of Virginia Police. United States Attorney Timothy J. Heaphy and Assistant United States Attorney Ronald Huber are prosecuting the case for the United States.
Timber Lake Man Pleads Guilty to Misprision of A FelonyRead the Press Release
United States Attorney Brendan V. Johnson announced that Nicholas Guttierrez, a/k/a Nicholas Gutierrez, age 19, of Timber Lake, South Dakota, appeared before U.S. District Judge Roberto A. Lange on August 29, 2013, and pled guilty to a Superseding Information that charged him with Misprision of a Felony.
The maximum penalty upon conviction is 3 years in custody and/or a $250,000 fine, 1 year of supervised release, and a $100 assessment to the Federal Crime Victims Fund.
The conviction is the result of a January 6, 2013, late night break-in at the Chatter Box Corner Café and Bar, a downtown business in Timber Lake. Guttierrez had knowledge of the burglary, provided transportation to his co-defendant from the scene of the burglary, and concealed the same from tribal and federal law enforcement officers. He did not, as soon as possible, make known the same to a judge or other person in civil authority.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.
A presentence investigation was ordered, and a sentencing date was set for November 19, 2013. The defendant was released pending sentencing.Three Utah Cities Receive Department of Justice Grants to Support Law Enforcement, CommunitiesRead the Press Release
Ogden, Sandy, and St. George Get FundingSALT LAKE CITY – The U.S. Department of Justice has awarded Edward Bryne Memorial Justice Assistance Grants (JAG) to Ogden, Sandy, and St. George to support law enforcement programs in the three cities.
JAG funding allows states and local governments to support a broad range of activities to prevent crime based on their own local needs. Grant funds can be used for local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support and information systems for criminal justice programs. Funds can be used in a variety of program areas, including law enforcement; prosecution and court programs; prevention and education; corrections; drug treatment and enforcement programs; planning, evaluation, and technology improvement programs; and crime victim and witness programs (other than compensation).
Ogden received a $60,064 grant. Ogden will use the funds for crime reduction programs, technology, training, and specialty units addressing gangs and drugs. Specifically, the city will use the grant to support police overtime, training, and to purchase equipment and software.
Sandy received a $24,285 grant. Sandy will use the funds to purchase duty handguns, patrol bicycles, mobile data terminals, in-car computer printers, and a dual monitor computer. The goal of Sandy’s project is to reduce crime, prevent violence and meet public safety needs.
St. George received a $13,869 grant to support technology upgrades. Funds will be used to purchase a computer server, wireless access hardware, digital video download management software, and digital mobile video camera systems for patrol vehicles to increase efficiency within the police department.
(Follow the U.S. Attorney’s Office on Twitter @DUTnews)Three People Found Guilty of Drug Conspiracy ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that on August 30, 2013, three people were found guilty of drug conspiracy charges following a federal jury trial in U.S. District Court in Rapid City, South Dakota.
Theresa Vocu, age 45, of Kyle, South Dakota, was found guilty of Conspiracy to Distribute Methamphetamine, and Zeno Little, age 57, of Porcupine, South Dakota, and Wesley Yellow Horse Sr., age 57, of Oglala, South Dakota, were each found guilty of Conspiracy to Distribute Marijuana.
Vocu faces up to 20 years’ imprisonment and/or a $1,000,000 fine. Little and Yellow Horse face not more than 5 years’ imprisonment and/or a $250,000 fine.
A drug conspiracy investigation began on or about October of 2008 and it resulted in federal charges against of 18 individuals: Abraham Romero; Richard Marshall; Lorenzo Camacho Tarango, a/k/a Lencho a/k/a Lecho; Reyes Chavez-Rojo; Billi American Horse; Jimmy Bravo; Elwanda Fire Thunder; Kimberly Janis; Zeno Little; Norton Little Spotted Horse; Moses Montileaux Jr.; Moses Montileaux Sr.; Whisper Montileaux; Stephanie Standing Soldier; Edward Vocu; Theresa Vocu; Cassie Winters; and Wesley Yellow Horse Sr.
During the course of the conspiracy, Romero would receive marijuana, cocaine, and methamphetamine from Chavez-Rojo and Lencho and other persons, and then the remaining above-named individuals and other persons conspired to distribute and/or distributed marijuana, cocaine, and/or methamphetamine on the Pine Ridge Indian Reservation. Prior to the guilty verdicts on August 30, 2013, the other fifteen defendants pled guilty to conspiracy to distribute a controlled substance(s).
The investigation was conducted by the Federal Bureau of Investigation, Northern Plains Safe Trails Drug Enforcement Task Force, South Dakota Division of Criminal Investigation, Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. The case was prosecuted by Assistant U.S. Attorney Ted L. McBride and Special Assistant U.S. Attorney Laura A. Shattuck.
Sentencing dates for Vocu, Little, and Yellow Horse have not been set.Three Ex-Executives of USA Dry Van Trucking Company Charged in Alleged $26 Million Fraud SchemeRead the Press Release
HOUSTON – Sergio Lagos, 44, Aurelio “Jim” Aleman, 59, and Oscar Barbosa, 50, have been arrested following the return of a six-count federal indictment charging wire fraud and conspiracy to commit wire fraud, announced United States Attorney Kenneth Magidson.
The sealed indictment, returned Aug. 27, 2013, was unsealed following the arrest of the McAllen residents today. They are expected to make their initial appearances before U.S. Magistrate Judge Dorina Ramos this morning.
Lagos was the former CEO of USA Dry Van Logistics (USADV), a cross-border trucking company that services the maquiladora industry, while Aleman and Barbosa were the former chief operations officer and former controller, respectively.
The indictment alleges that from March 2008 through the end of January 2010, Lagos, Aleman and Barbosa joined in a scheme to defraud and swindle GE Capital Corporation (GECC), a lending company that provided capital to USADV, fraudulently obtaining funds through a revolving line of credit. Lagos, Aleman and Barbosa allegedly schemed to conceal from GECC the truth about USADV’s declining operating performance and financial results. Rather than reveal USADV’s true condition, Lagos, Aleman and Barbosa allegedly misrepresented USADV’s true operating performance and financial results. According to the indictment, they misrepresenting to GECC the nature of the USADV’s accounts receivable, against which GECC was permitting USADV to borrow hundreds of thousands of dollars on a weekly basis. This caused USADV to appear to be operating more profitably that it actually was.
According to the Indictment, Lagos and Aleman entered into a financing agreement with GECC under which GECC would issue a revolving line of credit which was secured by USADV’s accounts receivables. By January 2010, the maximum borrowing limit under the agreement was increased to $38 million. Pursuant to the agreement, USADV allegedly justified advances on the line of credit by submitting “borrowing base certificates” to GECC. Lagos, Aleman and Barbosa allegedly signed, prepared and/or directed others to prepare certificates that falsely inflated the amount of the company’s accounts receivables and caused them to be submitted to GECC to enable USADV to obtain more funds than would otherwise would have been permitted. Lagos, Aleman and Barbosa allegedly perpetuated and concealed the scheme to defraud GECC by directing other employees to manually invoice millions of dollars of fraudulent receivables to inflate the borrowing base and to create false and forged invoices and support documentation for accounts receivables that did not exist. Lagos, Aleman and Barbosa also submitted false financial statements to auditors and GECC, according to the indictment.
When the truth about USADV’s operations and finances were revealed, USADV went into bankruptcy. The indictment alleges USADV successfully re-organized under Chapter 11 bankruptcy proceedings and is currently operating with new owners. Lagos, Aleman and Barbosa are no longer affiliated with or employed by the company. According to the Indictment, the amount of actual loss to GECC was more than $26 million.
Each of the six counts of the indictment carries a maximum punishment of 20 years in prison and up to a $250,000 fine.
The investigation was conducted by Homeland Security Investigations and the FBI. Assistant United States Attorneys Casey N. MacDonald and Grady J. Leupold are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
Ten Individuals Sentenced During the Month of August for Federal Supervised Release ViolationsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
WHEELING, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that during the month of August, 2013, ten (10) individuals had their supervised release revoked for violating terms and conditions imposed by the United States District Court.
WHEELING DIVISION REVOCATIONS
(Judge Frederick P. Stamp, Jr.)
THOMAS MACNEILL, age 31, of Steubenville, Ohio, was sentenced to 12 months and
1 day imprisonment for possession and use of synthetic marijuana, oxycodone and morphine and failure to attend substance abuse treatment appointments. MACNEILL was originally sentenced on August 19, 2008, to 51 months imprisonment and three years of supervised release for interstate travel to promote the distribution of heroin. MACNEILL was remanded to the custody of the United States Marshal pending designation to a Federal institution.JEROME BLEDSOE, age 58, of Wheeling, was sentenced to 10 months imprisonment for testing positive for the use of cocaine on two separate occasions. BLEDSOE was originally sentenced on December 18, 2007, to 63 months imprisonment and five years of supervised release for conspiracy to distribute crack cocaine and cocaine HCL. On May 7, 2012, BLEDSOE’s supervised release was revoked and he was sentenced to 48 hours imprisonment and 4 years of supervised release for testing positive for the use of cocaine. BLEDSOE will self-report to the designated Federal institution.
KEISHA RENEE PHILLIPS, age 25, of Wheeling, was sentenced to 9 months imprisonment for possession and use of alcohol, failure to comply with her mental health and substance abuse treatment program, conviction in Ohio County for shoplifting, and a DUI arrest in Pennsylvania. PHILLIPS was originally sentenced on July 29, 2011, to two years probation for providing false statements to a Deputy United States Marshal. On August 14,
2012, PHILLIPS’ supervised release was revoked and she was sentenced to 30 days imprisonment for failure to report law enforcement contact to the probation office. PHILLIPS will self-report to the designated Federal institution.The United States was represented at the Wheeling revocation hearings by Assistant
United States Attorneys John C. Parr and Randolph J. Bernard.CLARKSBURG DIVISION REVOCATIONS (Judge Irene M. Keeley)
DIONNE JAY LEWIS, age 43, of Fairmont, West Virginia, was sentenced to 12 months and 1 day imprisonment for unlawful use and possession of a controlled substance. LEWIS was originally sentenced on August 17, 2008, to 68 months imprisonment and three years of supervised release for possession with intent to distribute crack cocaine and distribution of crack cocaine. On October 28, 2011, LEWIS’ sentence was reduced to 56 months pursuant to the crack re-sentencing guidelines. LEWIS was remanded to the custody of the United States Marshal pending designation to a Federal institution.PETROUS NGOZI HAWKINS, 34, of Whitehall, West Virginia, was sentenced to 10 months imprisonment to be followed by 38 months of supervised release for a new arrest by the Morgantown Police Department and being charged in Monongalia County Magistrate Court with being a felon in possession of a firearm, concealing stolen property and possession of a loaded firearm in vehicle. HAWKINS was originally sentenced on March 21, 2009, to 12 months and 1 day imprisonment and 4 years of supervised release for attempted possession with intent to distribute marijuana within 1,000 feet of a protected location. HAWKINS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
TIMOTHY PAUL CONNOLLY, age 34, of Clarksburg, was sentenced to 7 months imprisonment to be followed by 29 months of supervised release for testing positive for the use of narcotics. CONNOLLY was originally sentenced on September 4, 2008, to 57 months imprisonment and 3 years of supervised release for being a convicted felon in possession of a firearm. On May 16, 2010, CONNOLLY’s sentenced was reduced to 36 months imprisonment. CONNOLLY was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the Clarksburg revocation hearings by Assistant
United States Attorneys Shawn A. Morgan and Zelda E. Wesley.MARTINSBURG DIVISION REVOCATIONS (Judge Gina M. Groh)
MELISSA KEMP, age 35, of Hedgesville, West Virginia, was sentenced to 18 months imprisonment for testing positive for the use of codeine, morphine, hydromorphone and cocaine and associating with convicted felons without her probation officer’s permission. KEMP was originally sentenced on July 6, 2011, to 10 months imprisonment and 6 years of supervised release for the distribution of heroin. On May 10, 2012, KEMP’s supervised release was revoked and she was sentenced to 12 months and 1 day imprisonment and 59 months of supervised release for providing false information to her probation officer regarding status of driver’s license and testing positive for the use of cocaine and morphine. KEMP was remanded to the custody of the United States Marshal pending designation to a Federal institution.JOHN FERGUSON, age 45, of Shenandoah Junction, West Virginia, was sentenced to
16 months imprisonment to be followed by 20 months of supervised release for a new arrest
for possession with intent to distribute crack cocaine and sexual assault 2nd degree.
FERGUSON was originally sentenced on August 16, 2010, to 37 months imprisonment and three years of supervised release for the distribution of crack cocaine. FERGUSON was remanded to the custody of the United States Marshal pending designation to a Federal institution.MELVIN WHITE, age 32, of Charles Town, West Virginia, was sentenced to 10 months imprisonment to be followed by 38 months of supervised release for failure to timely submit monthly reports to the probation office, possession of controlled substances, testing positive for the use of controlled substances, failure to be truthful with the probation officer, and failure to report to the probation office as directed. On September 11, 2012, WHITE’s supervised release was revoked and he was sentenced to 5 months imprisonment and 20 months of supervised release for failure to timely report a change of address, traveling outside the district without prior approval, and a new violation for drug possession. WHITE was remanded to the custody of the United States Marshal pending designation to a Federal institution.
OLIN GASKINS, age 36, of Capon Bridge, West Virginia, was sentenced to 7 months imprisonment to be followed by 36 months of supervised release for use of controlled substance, associating with a convicted felon without his probation officer’s permission, failure to timely notify probation officer of change of address and failure to be truthful with the probation officer. GASKINS was originally sentenced on January 29, 2007, to 70 months imprisonment and 3 years of supervised release for being a convicted felon in possession of a firearm. GASKINS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the Martinsburg revocation hearings by Assistant
United States Attorney Paul T. Camilletti.The United States Probation Office carries out probation and pretrial services functions throughout the Northern District of West Virginia. With locations in Wheeling, Clarksburg, Martinsburg, and Elkins, the office works to assist the federal courts in the fair administration of justice, to protect the community, and to bring about long-term positive change in individuals under supervision. Jeff Givens is the Chief Probation Officer for the Northern District.
St. Francis Man Charged with Eight Counts of Sexual Abuse and Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury on a Superseding Indictment for one count of Aggravated Sexual Abuse of a Child, six counts of Aggravated Sexual Contact with a Child, and one count of Abusive Sexual Contact.
Vernon Blackhorse, age 63, appeared before U.S. Magistrate Judge Mark A. Moreno on August 28, 2013, and pled not guilty to the superseding indictment.
The maximum penalty upon conviction is up to life in prison, a $250,000 fine, or both; up to life of supervised release; and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to allegations that between May 2001 and November 2007 Blackhorse assaulted four different female victims in St. Francis and Eagle Butte.
The charges are merely an accusation and Blackhorse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Blackhorse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for October 22, 2013.Southington Man Involved in Illegal Campaign Contribution Scheme Sentenced to 21 Months in PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that BENJAMIN HOGAN, 34, of Southington was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 21 months of imprisonment, followed by one year of supervised release, for participating in a scheme to direct illegal contributions into the campaign of a candidate for the U.S. House of Representatives. HOGAN also was ordered to pay a $5,000 fine.
According to court documents and statements made in court, in August 2011, the State of Connecticut applied for a court order enjoining Roll Your Own (“RYO”) smoke shops from continuing to operate without complying with state law governing tobacco manufacturers. RYO smoke shops are retail businesses that sell loose smoking tobacco and cigarette-rolling materials and offer customers the option of paying a “rental” fee to insert the loose tobacco and the rolling materials into a RYO machine, which is capable of rapidly rolling large quantities of cigarettes. Customers did not pay a tax on the RYO cigarettes when rolled by the RYO machines, in contrast to cigarettes purchased over-the-counter. HOGAN was an employee and part-owner of Smoke House Tobacco, a RYO smoke shop with two locations in Waterbury.
Fearing that the Connecticut General Assembly would enact legislation harmful to RYO smoke shop owners’ business interests during the 2012 legislative session, HOGAN and others engaged in a scheme to direct conduit campaign contributions into the campaign of Christopher Donovan, a candidate for the U.S. House of Representatives. At the time, Donovan was also the Speaker of the Connecticut House of Representatives. As part of the scheme, the co-conspirators recruited multiple individuals to serve as conduit contributors to the campaign. These individuals permitted checks to be written in their own names to the campaign, and HOGAN and other conspirators reimbursed them with cash, thereby concealing the fact that RYO smoke shop owners were contributing to the campaign.
In November and December 2011, participants in the scheme made four $2,500 conduit contributions to the Chris Donovan for Congress campaign. HOGAN was aware of the purpose of the contributions and that the contributions were being made in the names of others.
On approximately January 31, 2012, the Chris Donovan for Congress campaign submitted to the Federal Election Commission (“FEC”) a report of campaign committee’s receipts and disbursements for the period October 1, 2011 through December 31, 2011. The report falsely stated the source and amount of the four $2,500 contributions that were received and deposited by the campaign committee during that time period.
On May 14, 2012, HOGAN, Harry “Ray” Soucy and Paul Rogers met at Smoke House Tobacco where Soucy provided Rogers with $10,000 in cash to be used to reimburse additional conduit contributors. Prior to the meeting, HOGAN had approached Waterbury business owner Daniel Monteiro and an employee of Monteiro’s and asked them to serve as conduit contributors. Monteiro subsequently wrote a $2,500 check to the Donovan for Congress campaign, and his employee obtained a bank check in the amount of $2,500. Both were assured that they would be reimbursed. These two checks, and another $2,500 bank check drawn on HOGAN’s own account but not in his name, were given to Soucy at the meeting. Rogers also gave Soucy a fourth $2,500 check from a conduit contributor that was payable to a political party. Soucy then delivered the four checks to Donovan for Congress campaign manager Joshua Nassi.
On April 12, 2013, HOGAN pleaded guilty to one count of conspiracy to make false statements to the Federal Election Commission and to impede the FEC’s enforcement of federal campaign finance laws.
Rogers, Soucy, Monteiro, Nassi and three others have also been convicted of charges stemming from this scheme.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Eric J. Glover.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Seaside Partner in Monterey Investment Company Convicted of Defrauding Investors Out of Millions of DollarsRead the Press Release
SAN JOSE - A federal jury in San Jose convicted Michael Swanson, of Seaside, Calif., yesterday with mail fraud, wire fraud, securities fraud, and conspiracy to commit mail and wire fraud, United States Attorney Melinda Haag announced.
According to the evidence at trial, Swanson, 62, was a partner in the management of an investment company called APS Funding, Inc. (“APS”). APS engaged in the business of offering short-term, high-interest loans, also known as “hard money lending,” for business and real estate development purposes. The three APS partners, including Swanson, established several investment funds under the APS umbrella, including GCF Investment, L.L.C. and the Greenlight Fund. The partners recruited investors to purchase shares in these funds and assured investors that their investments would be used to fund the loans. According to the evidence at trial, however, the partners attracted few borrowers and made few hard money loans with the invested funds, but instead diverted investor money to pay for the partners’ personal expenses. From 2007 to 2009 APS received more than $5 million from investors, over 90% of which was diverted to the partners for their personal use.
Swanson was convicted of one count of Conspiracy to Commit Mail and Wire Fraud in violation of Title 18, United States Code, Section 1349, twelve counts of Mail Fraud, in violation of Title 18, United States Code, Section 1341, fourteen counts of Wire Fraud, in violation of Title 18, United States Code, Section 1343, and one count of Securities Fraud, in violation of Title 15, United States Code, Sections 78j(b) and 78ff, and Title 17, Code of Federal Regulations, Sections 240.10b-5 and 240.10b5-2. Swanson was acquitted of one count of mail fraud and one count of securities fraud. He is scheduled to be sentenced on December 18, 2013, before the Honorable Lucy H. Koh, U.S. District Judge. Beth Pina, one of Swanson’s partners, pleaded guilty on December 17, 2012, and is scheduled to be sentenced on March 14, 2014.
The maximum penalty for each count of Conspiracy to Commit Mail and Wire Fraud in violation of Title 18, United States Code, Section 1349, and for the substantive Mail and Wire Fraud counts, is 20 years imprisonment and a fine of $250,000 fine, or twice the gross gain or gross loss from the offense, plus restitution. The maximum penalty for each count of Securities Fraud in violation of Title 15, United States Code, Sections 78j(b) and 78ff, and Title 17, Code of Federal Regulations, Sections 240.10b-5 and 240.10b5-2, is 20 years imprisonment and a fine of $5,000,000 fine, plus restitution. 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.
Jeff Schenk and Amber Rosen are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Nina Burney. The prosecution is the result of an investigation by the Federal Bureau of Investigation, Securities and Exchange Commission, and the Monterey County District Attorney’s Office.
Sanford Missionary Pleads Guilty to Producing Child PornographyRead the Press Release
Orlando, FL - Acting United States Attorney A. Lee Bentley, III announces that Warren Scott Kennell (45, West Milford, New Jersey) today pleaded guilty to two counts of production of child pornography. Kennell faces a mandatory minimum penalty of 15 years, up to a maximum of 30 years in federal prison.
According to court documents, between December 2008 and August 2011, Kennell produced images of child pornography involving two minor victims. According to the plea agreement, on May 31, 2013, Kennell arrived at Orlando International Airport from Panama City, Panama. After retrieving his luggage, Kennell was escorted to the United States Customs and Border Protection (CBP) secondary inspection area.After Kennell was seated, a special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) searched Kennell's belongings and found three thumb drives and one external hard drive. During an interview, Kennell said that he had worked in Brazil as a missionary for the New Tribes Mission, in Sanford, Florida, and that he had been doing missionary work for several years. Kennell told the agent that he had never touched a child in a sexual and/or inappropriate manner, that he had never taken pornographic images of a child, and that there would be no child pornography found on any of the items in his luggage.
After Kennell made these statements, Florida Department of Law Enforcement (FDLE) computer forensic agents advised that two images of child pornography had been found on Kennell's external hard drive.
When shown the first image, Kennell acknowledged that he was the man in the picture performing a sex act on the prepubescent female. Kennell said that he believed the girl was about 12 years old at the time the picture was taken. When shown the second image, Kennell admitted that he had taken that picture and that the girl in the second image also had been about 12 years old at the time. Kennell further admitted that both images had been taken in Brazil while he was on the missionary assignment.
A forensic examination of Kennell’s external hard drive showed more than 940 images of child pornography. The child victims are members of an indigenous tribe in the Amazon, where Kennell was setting up a church.
This case was investigated by HSI, with assistance from FDLE. It is being prosecuted by Assistant United States Attorney Tanya Davis Wilson.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Rutland Woman Imprisoned 15 Months for Drug TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that today, Annette Rider, 45, of Rutland, was sentenced to 15 months imprisonment on her guilty plea to conspiracy to distribute heroin and crack cocaine. United States District Judge J. Garvan Murtha also ordered Rider to serve three years supervised release after her incarceration ends.
According to court records, Rider conspired with Darlene Palmer, 45, of Rutland, and others to distribute heroin and crack cocaine in Rutland during spring 2011. During that period the Vermont Drug Task Force (VDTF) made several controlled purchases of heroin and crack from Rider and Palmer. On August 1, 2012, a grand jury returned an indictment charging the two with conspiracy and several distribution counts. Rider and Palmer were arrested by the VDTF and the Drug Enforcement Administration (DEA) on September 20, 2012. Initially released on conditions, Rider has been detained since March 20, 2013, as a result of violating her conditions. Palmer was sentenced to 20 months imprisonment and three years supervised release on June 24, 2013.
United States Attorney Tristram J. Coffin commended the VDTF and DEA for their joint investigation. Burlington attorney Brooks McArthur represented Rider. The case was prosecuted by Assistant U.S. Attorney Craig Nolan.
Roommates Sentenced to Federal Prison for Possessing Child PornographyRead the Press Release
DALLAS — Franklin Bratcher, 44, of Dallas, was sentenced today by U.S. District Judge Ed Kinkeade to 66 months in federal prison, following his guilty plea in February 2013 to one count of possession of child pornography. Bratcher’s roommate, Howard Tyson, 45, was sentenced in June 2013 to the statutory maximum of 10 years in federal prison, following his guilty plea in March 2013 to the same offense. Both men have been in federal custody since they entered their guilty pleas. 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, Bratcher and Tyson each used peer-to-peer file-sharing to download child pornography from the internet onto their computers. When agents with the U.S. Secret Service executed a federal search warrant at their residence on July 26, 2011, both Bratcher and Tyson admitted that they had been downloading child pornography for at least one year. Tyson admitted that he downloaded most of the child pornography onto his wife’s laptop computer. A forensic examination of Tyson’s computer and his wife’s computer revealed that the hard drives contained more than 8000 images and 20 videos of child pornography. A forensic analysis of Bratcher’s hard drive revealed more than 200 images and nine videos of child pornography. Both Bratcher and Tyson acknowledged that some of the images were sadistic and that the images and videos were of real prepubescent and pubescent minors.
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 U.S. Secret Service and the Plano Police Department. Assistant U.S. Attorney Camille Sparks prosecuted.
Rapid City Man Charged with Aggravated Sexual Abuse of A Child and Abusive Sexual Contact with A ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child and Abusive Sexual Contact with a Child.
Daniel Briggs, age 28, was indicted on June 12, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 3, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of 30 years in custody up to life in custody and/or a $250,000 fine, up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stem from an alleged incident that happened on or between December 4, 2010, and December 5, 2010, where Briggs sexually abused a child under the age of 12 in Eagle Butte. The charges are merely an accusation and Briggs is presumed innocent until and unless proven guilty.The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Briggs was remanded to the custody of the U.S. Marshals Service. A trial has been set for October 22, 2013.Pocatello Man Sentenced to 70 Months in Prison for Selling MethRead the Press Release
POCATELLO – Loyal Dean Williams, 38, of Pocatello, Idaho, was sentenced yesterday in United States District Court to 70 months in prison for distributing methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Williams to serve four years of supervised release.
On June 4, 2013, Williams admitted in court that on September 14, 2010, he met with an individual in Idaho Falls, Idaho, and sold that individual 6.8 grams of methamphetamine for $1,000. The substance was tested by DEA’s Western Laboratory and confirmed to contain 6.7 grams of actual methamphetamine. On October 5, 2010, Williams again met with and sold the same individual 6.3 grams of methamphetamine for $900. Testing confirmed the substance contained 6.1 grams of actual methamphetamine.
The case is the result of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), led by the Federal Bureau of Investigation and Idaho State Police. Other federal agencies participating in the OCDETF program include U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), and U.S. Marshals Service.
Pine Ridge Woman Sentenced for TheftRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, woman convicted of Theft from Indian Tribal Organization was sentenced on August 29, 2013, by Chief Judge Jeffrey L. Viken, United States District Court.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Sarah B. Collins prosecuted the case.
Doreen Two Bulls, a/k/a Doreen Brown, a/k/a Dee Dee Brown, age 55, was sentenced to 1 year of probation and ordered to pay $100 to the Federal Crime Victims Fund. She was also ordered to pay $9,528.06 in restitution to the Oglala Sioux Tribe.
Between August 2010 and January 2011, Two Bulls, while employed as the Oglala Sioux Tribe Property and Supply Director, stole checks issued to tribal organizations, changed the face of the checks to include her name, and endorsed them. She then took the forged checks to various locations, cashed them, and used the money for personal purchases. She pled guilty on March 13, 2013.Petersburg Man Sentenced to Twelve Years for Multi-Kilo Heroin and Cocaine DistributionRead the Press Release
RICHMOND, Va. - Ronald Harper, Jr., 48, of Petersburg, Virginia was sentenced today to 144 months in prison for conspiracy to distribute heroin. He was also ordered to forfeit $150,000.00 in United States currency, and a Smith and Wesson .40 caliber firearm and assorted ammunition.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; John I. Dixon, III, Chief of Police for the Petersburg Police Department; and Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field office, made the announcement after the sentence was imposed today by United States District Judge James R. Spencer.
In the Statement of Facts filed at the time of his plea hearing in May, Harper admitted that he had conspired to distribute between 1 and 3 kilograms of heroin, and between 2 and 3.5 kilograms of cocaine from January 2009 through March 6, 2013. Harper admitted to purchasing heroin every month, for redistribution into the Petersburg, Virginia community.
At the time of his arrest on March 6, 2013, Harper was in possession of more than $7000.00 in cash, which he acknowledged was proceeds from his drug trafficking activities. A search warrant executed at a Petersburg, Virginia residence that was known to be utilized by Harper for distribution of narcotics resulted in the recovery of a six-ton hydraulic press, a suitcase full of drug packaging materials, digital scales; and narcotics, including heroin, marijuana, and cocaine.
This case was investigated by the Petersburg Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Angela Mastandrea-Miller prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Parmelee Man Charged with Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmelee, South Dakota, man has been indicted by a federal grand jury.
Joseph Morrisette, age 53, was indicted on August 21, 2013, for Child Abuse. Morrisette appeared before U.S. Magistrate Judge Mark A. Moreno on September 3, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 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 Morrisette is presumed innocent until and unless proven guilty.
The Indictment alleges that on July 9, 2013, Morrisette struck a child and exposed three other children to danger.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Timothy M. Maher is prosecuting the case.
Morrisette was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.Parmalee Man Pleads Guilty to Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that William Rahn, age 27, of Parmelee, South Dakota, appeared before U.S. District Judge Roberto A. Lange on August 29, 2013, and pled guilty to a Superseding Information that charged him with Assaulting, Resisting and Impeding a Federal Officer.
The maximum penalty upon conviction is 8 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The charge stems from an incident wherein Rahn was driving erratically, attempting to elude Bureau of Indian Affairs police officers on the Rosebud Sioux Indian Reservation. He drove his vehicle directly at a parked police unit, and came within feet of hitting the vehicle. When Rahn finally stopped his vehicle on a dirt road, he resisted officers’ attempts to pull him from the vehicle and the resistance involved physical contact with an officer. Rahn was tazered whereupon he became compliant.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Rahn was remanded to the custody of the U.S. Marshals Service pending sentencing, which has been set for November 21, 2013.Oglala Woman Charged with Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that an Oglala, South Dakota, woman has been indicted by a federal grand jury for allegedly operating and crashing a motor vehicle while under the influence on May 19, 2013, near Loneman, South Dakota. The crash resulted in the death of Gillard Good Voice Flute.
Good Voice Flute was remanded to the custody of the U.S. Marshals Service. A trial date has been set for November 5, 2013.
Valerie Good Voice Flute, age 36, was indicted on August 27, 2013, for Involuntary Manslaughter. Good Voice Flute appeared before U.S. Magistrate Judge Veronica L. Duffy on August 29, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 8 years of imprisonment and a $250,000 fine. The charge is merely an accusation and Good Voice Flute is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.Norris Man Charged with Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Norris, South Dakota, man has been indicted by a federal grand jury on two counts of Sexual Abuse of a Minor.
Jeremy Eagle Bear, age 23, was indicted on August 21, 2013. Eagle Bear appeared before U.S. Magistrate Judge Mark A. Moreno on August 30, 2013, and pled not guilty to the Indictment.
The maximum penalty on each count upon conviction is 15 years of imprisonment and/or a $250,000 fine, 5 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 charges relate to allegations that in 2011 Eagle Bear had sex with a minor on two different occasions, which occurred on the Rosebud Sioux Indian Reservation.
The charges are merely accusations, and Eagle Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Eagle Bear was remanded to the custody of the U.S. Marshals Service. A trial date has been set for November 5, 2013.Norris Man Charged with Assault with A Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Norris, South Dakota, man has been indicted by a federal grand jury.
Chauncy Crow Dog, age 19, was indicted on August 21, 2013, for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury. Crow Dog appeared before U.S. Magistrate Judge Mark A. Moreno on August 28, 2013, and pled not guilty to the Indictment.
The maximum penalty on each count 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 charges stem from an incident on August 14, 2013, when Crow Dog allegedly assaulted two individuals in the parking lot of the Paul Mart convenience store in Rosebud. The charges are merely accusations, and Crow Dog is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Crow Dog was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.New Orleans Man, George Snyder, Charged with Crimes Involving the Sexual Exploitation of ChildrenRead the Press Release
GEORGE SNYDER, age 36, of New Orleans, was charged in a one-count bill of information today for crimes involving the sexual exploitation of children, announced United States Attorney Dana J. Boente.
If convicted, SNYDER faces up to a maximum of 20 years in prison, followed by up to a life term of supervised release, and a $250,000 fine. He can also be required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gove/psc. For more information about internet safety, please visit www.usdoj.gov/psc and click on the tab “resources.”
United States Attorney Boente reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by special agents from the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg.
(Download Bill of Information )
New Haven Man Sentenced to More Than 15 Years in Prison for Robbing Killingworth BankRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MARCUS DWYER, 41, of New Haven, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 188 months of imprisonment, followed by three years of supervised release, for robbing a Killingworth bank.
According to court documents and statements made in court, in the afternoon of August 6, 2012, Jennifer Jacques drove DWYER and Dario Pabey to the TD Bank on Route 81 in Killingworth. DWYER and Pabey then entered the bank wearing masks and demanded that everyone lie on the floor. DWYER pointed a gun at bank employees and customers and then jumped over the teller door and ordered the employees to open the vault. He accompanied the employees to the vault while Pabey controlled the lobby area. Pabey used zip ties to tie the hands of one bank employee and demanded that the customers give him their wallets, mobile phones and car keys. As Pabey was starting to restrain a second person with zip ties, DWYER ran past him with a bag of money that he had taken from the vault. Pabey followed and grabbed a patron who had surrendered his car keys to him and forced him out of the bank. DWYER and Pabey fled in the customer’s vehicle, which was abandoned a short distance from the bank at a pre-planned location where Jacques was waiting. Jacques then drove DWYER and Pabey away from the bank while they changed out of the clothes they had worn during the robbery.
The investigation revealed that $43,573 was stolen from the bank and its patrons during the robbery.
DWYER has been detained since his arrest on September 19, 2012. On May 13, 2013, he pleaded guilty to one count of bank robbery.
Pabey pleaded guilty to the same charge and, on May 24, 2013, he was sentenced to 180 months of imprisonment. Jacques also has pleaded guilty and awaits sentencing.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut State Police. The case is being prosecuted by Assistant United States Attorneys Ray Miller and Sarala Nagala.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Montgomery Woman Sentenced to Jail for Role in Identity Theft Tax SchemeRead the Press Release
Montgomery, Alabama - Angelique Djonret of Montgomery, Ala., was sentenced today to serve two years in prison for her involvement in a million dollar identity theft tax fraud scheme, announced George L. Beck, U.S. Attorney for the Middle District of Alabama. Angelique Djonret pleaded guilty to identity theft on April 19, 2013.
According to court documents, between October 2009 and April 2012, Angelique Djonret’s sister, Antoinette Djonret, orchestrated a tax refund scheme using stolen identities to file over 1,000 false tax returns that fraudulently claimed over $1.7 million in tax refunds. Antoinette Djonret obtained stolen identities from multiple sources, including Alabama state databases. She also established an elaborate network for laundering the refund money. Antoinette Djonret recruited her sister, Angelique, into the conspiracy, whose role was to obtain prepaid debit cards in her name and others’ names for the purpose of receiving the fraudulent tax refunds. Antoinette Djonret and her co-conspirators used the cards to obtain the refund proceeds. Angelique Djonret also assisted in the filing of false tax returns using stolen identities. Angelique Djonret’s sister, Antoinette, was previously sentenced to 12 years in prison for her part in this scheme.
This case was investigated by Special Agents of Internal Revenue Service - Criminal Investigation Division and prosecuted by Tax Division Trial Attorneys Jason H. Poole and Michael Boteler, and Assistant U.S. Attorney Todd Brown.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Mission Man Indicted on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Domestic Assault by a Habitual Offender.
Hubert Desersa, age 23, was indicted on July 17, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 3, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to alleged incidents that occurred in Todd County in May 2013 when Desersa assaulted the victim with dangerous weapons, including a knife, causing serious bodily injury. The charges are merely accusations and Desersa is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Desersa was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for October 22, 2013.Michigan Man Pleads Guilty to Armed Robbery of Stillwater BankRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 66-year-old man from Cheboygan, Michigan, pleaded guilty to robbing the U.S. Bank in Stillwater. David Michael Tyler specifically pleaded guilty to one count of armed bank robbery. Tyler, who was indicted on July 8, 2013, entered his plea before United States District Chief Judge Michael J. Davis.
In his plea agreement, Tyler admitted that on June 8, 2013, at approximately 9:30 a.m., he entered the US Bank in Stillwater, wearing a fake beard and glasses and carrying a briefcase and backpack. Tyler placed the briefcase on a banker’s desk and showed him what appeared to be a homemade bomb inside. He then gave the banker a note, which demanded $200,000. It also threatened that if the demands were not met, Tyler would detonate the bomb.
While the banker placed the money into Tyler’s backpack, Tyler admittedly pushed a button on his cell phone, warning the banker that he had ten minutes before the bomb went off. Tyler then grabbed the bag and fled the premises, leaving the briefcase and purported bomb on the banker’s desk. Tyler was apprehended a short distance from the bank, after officers witnessed him throwing the backpack into a pickup truck. All of the money was recovered.For his crime, Tyler faces a potential maximum penalty of 25 years in prison. Judge Davis will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Stillwater Police Department, the St. Paul Police Department, and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Kevin S. Ueland.
Meriden Man Involved in Middlefield Home Invasion Sentenced to More Than 10 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that SHANE LEVERETTE, also known as Shane Baltas, 44, formerly of Meriden, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 126 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm and for violating the conditions of his supervised release from a previous federal conviction.
According to court documents and statements made in court, on February 16, 2011, at approximately 10:40 p.m., LEVERETTE and an accomplice, who was armed with a handgun, entered a residence in Middlefield for the purpose of stealing money and drugs. LEVERETTE and his accomplice were dressed in black and wearing baseball hats with a DEA logo and gloves, and had bandannas covering their faces. Inside the residence, LEVERETTE located and stole a semi-automatic rifle. He and his accomplice then threatened two adults with their firearms and directed them to remain seated on the bed. After demanding money, the accomplice struck a male victim with the handgun, causing the victim’s head to bleed, and the handgun discharged. LEVERETTE and his accomplice then searched the bedroom for drugs and money.
After receiving a 911 call, the Connecticut State Police and Middletown Police Department arrived at the scene and surrounded the residence. LEVERETTE and his accomplice surrendered and were arrested and charged with state offenses. Law enforcement officers also seized the accomplice’s handgun and the semi-automatic rifle that LEVERETTE had stolen.
Prior to February 2011, LEVERETTE had sustained multiple federal and state felony convictions. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce. The rifle that LEVERETTE possessed was manufactured in Hungary.
In February 1999, LEVERETTE was sentenced in federal court in Massachusetts to 151 months of imprisonment for racketeering, narcotics and firearm offenses. He was released from federal prison on April 23, 2007, and was serving a five-year term of supervised release at the time of the Middlefield home invasion.
On April 30, 2013, LEVERETTE pleaded guilty to one count of possession of a firearm by a previously convicted felon. On that date, he also admitted to violating the conditions of her supervised release.
Judge Hall sentenced LEVERETTE to 96 months of imprisonment for illegally possessing a firearm, and a consecutive 30 months of imprisonment for violating his supervised release.
LEVERETTE has been detained since his arrest. His accomplice was prosecuted in state court.
This matter was investigated by the Bureau of Alcohol Tobacco and Firearms, the Connecticut State Police and the Middletown Police Department. The case was prosecuted by Assistant United States Attorney Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Media AdvisoryRead the Press Release
PLATTSBURGH, NEW YORK - United States Attorney Richard S. Hartunian, the District Attorneys of Clinton, Franklin and St. Lawrence Counties, the Massena Police Department, the St. Lawrence County Sheriff’s Department, the Department of Homeland Security, the Saint Regis Mohawk Tribal Police Department, the New York State Police, the United States Customs and Border Protection Office of Air and Marine, the United States Customs and Border Protection Office of Field Operations, the Drug Enforcement Administration, the Royal Canadian Mounted Police, the New York Attorney General’s Office, the Oneida Indian Nation Police and the Customs and Border Protection United States Border Patrol will hold a press conference Thursday, September 5, 2013 at 2:00 p.m. at the Massena Town Hall, 60 Main Street, Room #30, Massena, New York to announce a significant north country law enforcement operation.
No further information will be available in advance of the press conference.
McLaughlin Man Charged with Kidnapping, Assault with Intent to Commit Any Felony and Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury.
Lemar Chasing Hawk, age 53, was indicted on August 21, 2013, for Kidnapping, Assault with Intent to Commit Any Felony, and Domestic Assault By An Habitual Offender. He appeared before U.S. Magistrate Judge William D. Gerdes on August 29, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction of the kidnapping charge is any term of years up to life imprisonment and 5 years of supervised release. The assault charge carries a maximum penalty of 10 years of imprisonment, and the habitual offender charge carries a maximum of 5 years' imprisonment. All counts (unless stated otherwise) include a possible $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 charges stem from alleged repeated assaults of an individual, who at the time of the assaults was the spouse or intimate partner of Chasing Hawk. One incident also alleges the victim was dragged, against her will, to another location to be assaulted.
The charges are merely accusations, and Chasing Hawk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Chasing Hawk was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.Maryland Woman Sentenced to 48 Months in Prison in Mortgage Fraud Scheme That Cost Lenders More Than $900,000-She and Others Used Straw Buyers to Generate Fraudulent Loans; - Actions Led to Evictions of Some Tenants-Read the Press Release
WASHINGTON - LaFrances Dudley O’Neal, 49, of Clinton, Md., was sentenced today to 48 months in prison for her part in a mortgage fraud scheme that cost lenders more than $900,000. She was ordered to begin serving her sentence immediately.
The sentence was announced by U.S. Attorney Ronald C. Machen Jr., Gary R. Barksdale, Inspector in Charge, Washington Division, U.S. Postal Inspection Service; Cary Rubenstein, Special Agent in Charge of the Mid-Atlantic Region of the Office of Inspector General of the U.S. Department of Housing and Urban Development; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and William P. White, Commissioner of the District of Columbia Department of Insurance, Securities and Banking.
O’Neal was found guilty by the jury on March 27, 2013 of four felony charges, including conspiracy and bank fraud, after a two-week trial in the U.S. District Court for the District of Columbia. She was sentenced by the Honorable Reggie B. Walton. Judge Walton also ordered her to pay $964,503 in restitution and the same amount in a money judgment of forfeiture. In addition, he ordered 60 months of supervised release following the prison term.
According to the government’s evidence at trial, from June 2006 to August 2009, O’Neal and others identified District of Columbia area homes and straw buyers to obtain mortgages through false loan applications, forged documents, and fraudulent settlements. Co-conspirators acted as a mortgage broker, title and escrow agent, and other professionals to assist O’Neal with tricking the mortgage lenders and banks into lending $2.6 million in mortgage loans on the belief that the straw buyers had the means and the willingness to pay the mortgages.
Every one of the mortgages fell into default, and the lenders were forced to foreclosure with an aggregate loss to the lenders in excess of over $900,000.
According to the government’s evidence, the title and escrow companies paid O’Neal from the fraudulently obtained loan proceeds, at times using fraudulent “invoices” which falsely stated that renovation work had recently been completed and that money was due at settlement. As a result of these false invoices and inaccurate settlement statements, title and escrow agents turned over more than $400,000 of fraudulent loan proceeds to O’Neal.
In spite of promising the straw buyers that she would pay the mortgage and in spite of receiving rental income from the D.C. Housing Authority and their client tenants, O’Neal failed to pay the mortgages on all of these properties and the lenders foreclosed on the houses with the result being the tenants were evicted.
Four others earlier pled guilty to a charge of conspiracy to commit bank fraud and mail fraud for their roles in the scheme and related schemes.
“Ms. O’Neal defrauded lenders out of $900,000 in a mortgage fraud scheme that left behind a trail of foreclosed homes and evicted tenants,” said U.S. Attorney Machen. “She conspired with crooked mortgage brokers and title agents to rip off lenders and banks to stuff her own pockets with hundreds of thousands of dollars. This prison sentence is just punishment for a crime that inflicts tremendous economic damage on everyone pursuing the dream of homeownership and threatens the stability of our financial system.”
Fraud schemes such as this one negatively impact individuals, banks and mortgage lenders, and even our nation's economy,”said Inspector in Charge Barksdale. “By investigating mortgage fraud, Postal Inspectors seek justice for these victims, shield others from falling prey to fraudsters, and ensure the integrity of the U.S. mail.”
“What we have here is a group of mortgage industry professionals that perpetrated a sophisticated mortgage fraud for profit scheme that was designed to enrich themselves at the expense of lenders,” said Cary Rubenstein, Special Agent in Charge of the Mid-Atlantic Region of the U.S. Housing and Urban Development’s Office of the Inspector General. “The efforts that brought us the verdict in this case demonstrate that when law enforcement is made aware of such despicable schemes, we will commit the necessary resources to make sure that the fraudsters are brought to justice and are no longer in a position to engage in fraud. We wish to thank the U.S. Attorney’s Office and our investigative partners at the U.S. Postal Inspection Service, FBI and the D.C. Department of Insurance, Securities and Banking for their steadfast efforts.”
“In concert with her co-conspirators and through false loan applications, forged documents and fraudulent statements, Ms. O’Neal acted as a con artist when she caused a loss of more than $900,000 to mortgage lenders and banks who were supporting homeownership in the District of Columbia,” said Assistant Director in Charge Parlave. “The FBI recognizes the negative impact that mortgage fraud and foreclosures have on our local economy and in our community and, together with our law enforcement partners, we will continue to investigate and stop those who seek to defraud lenders, banks and homeowners.”
“Today’s sentencing sends a clear message that if you deceive District residents into fraudulent mortgages, you will be caught and there are serious consequences,” said Commissioner White. “I applaud the joint efforts by the investigators in our department, the U.S. Attorney’s Office and other federal agencies to bring down this scheme and prosecute these bad actors.”
The others who pled guilty include: Akinola George, 44, of Washington, D.C.; Orpel Tucker, 44, of Washington, D.C., Donald M. Ramsey, 46, a mortgage broker from Alexandria, Va., and Tania Firmani, 46, a title and escrow agent from Chesapeake Beach, Md.
George was sentenced in January 2012 to a 40-month prison term. Tucker was sentenced in May 2013 to a 37-month prison term. Ramsey was sentenced in August 2013 to five years of probation, including 20 weekends in jail; restitution of $535,435; 200 hours community service; and an order of forfeiture for $366,000. Firmani was sentenced in May 2013 to 15 months of incarceration.
In announcing the sentence, U.S. Attorney Machen, Inspector in Charge Barksdale, Special Agent in Charge Rubenstein, Assistant Director in Charge Parlave and Commissioner White praised those who worked on the case from the U.S. Postal Inspection Service, U.S. Department of Housing and Urban Development - Office of Inspector General, the FBI’s Washington Field Office, the District of Columbia Department of Insurance, Securities, and Banking, and the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including: Financial Analyst Crystal Boodoo; Paralegal Specialists Donna Galindo, Corrine Laxman, Diane Hayes, Lenisse Edloe, Shanna Hays, and Nicole Wattelet; former Paralegal Specialist Sarah Reis; Litigation Services Specialist Kimberly Smith; Law Interns Nicole Audet and Jason Navia, and Assistant U.S. Attorney Diane Lucas of the Asset Forfeiture and Money Laundering Section. Finally, they acknowledged the work of Assistant U.S. Attorney Virginia Cheatham, who prosecuted the case.
13-304Maryland Woman Sentenced to 48 Months in Prison in Mortgage Fraud Scheme That Cost Lenders More Than $900,000-She and Others Used Straw Buyers to Generate Fraudulent Loans; - Actions Led to Evictions of Some Tenants-Read the Press Release
WASHINGTON - LaFrances Dudley O’Neal, 49, of Clinton, Md., was sentenced today to 48 months in prison for her part in a mortgage fraud scheme that cost lenders more than $900,000. She was ordered to begin serving her sentence immediately.
The sentence was announced by U.S. Attorney Ronald C. Machen Jr., Gary R. Barksdale, Inspector in Charge, Washington Division, U.S. Postal Inspection Service; Cary Rubenstein, Special Agent in Charge of the Mid-Atlantic Region of the Office of Inspector General of the U.S. Department of Housing and Urban Development; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and William P. White, Commissioner of the District of Columbia Department of Insurance, Securities and Banking.
O’Neal was found guilty by the jury on March 27, 2013 of four felony charges, including conspiracy and bank fraud, after a two-week trial in the U.S. District Court for the District of Columbia. She was sentenced by the Honorable Reggie B. Walton. Judge Walton also ordered her to pay $964,503 in restitution and the same amount in a money judgment of forfeiture. In addition, he ordered 60 months of supervised release following the prison term.
According to the government’s evidence at trial, from June 2006 to August 2009, O’Neal and others identified District of Columbia area homes and straw buyers to obtain mortgages through false loan applications, forged documents, and fraudulent settlements. Co-conspirators acted as a mortgage broker, title and escrow agent, and other professionals to assist O’Neal with tricking the mortgage lenders and banks into lending $2.6 million in mortgage loans on the belief that the straw buyers had the means and the willingness to pay the mortgages.
Every one of the mortgages fell into default, and the lenders were forced to foreclosure with an aggregate loss to the lenders in excess of over $900,000.
According to the government’s evidence, the title and escrow companies paid O’Neal from the fraudulently obtained loan proceeds, at times using fraudulent “invoices” which falsely stated that renovation work had recently been completed and that money was due at settlement. As a result of these false invoices and inaccurate settlement statements, title and escrow agents turned over more than $400,000 of fraudulent loan proceeds to O’Neal.
In spite of promising the straw buyers that she would pay the mortgage and in spite of receiving rental income from the D.C. Housing Authority and their client tenants, O’Neal failed to pay the mortgages on all of these properties and the lenders foreclosed on the houses with the result being the tenants were evicted.
Four others earlier pled guilty to a charge of conspiracy to commit bank fraud and mail fraud for their roles in the scheme and related schemes.
“Ms. O’Neal defrauded lenders out of $900,000 in a mortgage fraud scheme that left behind a trail of foreclosed homes and evicted tenants,” said U.S. Attorney Machen. “She conspired with crooked mortgage brokers and title agents to rip off lenders and banks to stuff her own pockets with hundreds of thousands of dollars. This prison sentence is just punishment for a crime that inflicts tremendous economic damage on everyone pursuing the dream of homeownership and threatens the stability of our financial system.”
Fraud schemes such as this one negatively impact individuals, banks and mortgage lenders, and even our nation's economy,”said Inspector in Charge Barksdale. “By investigating mortgage fraud, Postal Inspectors seek justice for these victims, shield others from falling prey to fraudsters, and ensure the integrity of the U.S. mail.”
“What we have here is a group of mortgage industry professionals that perpetrated a sophisticated mortgage fraud for profit scheme that was designed to enrich themselves at the expense of lenders,” said Cary Rubenstein, Special Agent in Charge of the Mid-Atlantic Region of the U.S. Housing and Urban Development’s Office of the Inspector General. “The efforts that brought us the verdict in this case demonstrate that when law enforcement is made aware of such despicable schemes, we will commit the necessary resources to make sure that the fraudsters are brought to justice and are no longer in a position to engage in fraud. We wish to thank the U.S. Attorney’s Office and our investigative partners at the U.S. Postal Inspection Service, FBI and the D.C. Department of Insurance, Securities and Banking for their steadfast efforts.”
“In concert with her co-conspirators and through false loan applications, forged documents and fraudulent statements, Ms. O’Neal acted as a con artist when she caused a loss of more than $900,000 to mortgage lenders and banks who were supporting homeownership in the District of Columbia,” said Assistant Director in Charge Parlave. “The FBI recognizes the negative impact that mortgage fraud and foreclosures have on our local economy and in our community and, together with our law enforcement partners, we will continue to investigate and stop those who seek to defraud lenders, banks and homeowners.”
“Today’s sentencing sends a clear message that if you deceive District residents into fraudulent mortgages, you will be caught and there are serious consequences,” said Commissioner White. “I applaud the joint efforts by the investigators in our department, the U.S. Attorney’s Office and other federal agencies to bring down this scheme and prosecute these bad actors.”
The others who pled guilty include: Akinola George, 44, of Washington, D.C.; Orpel Tucker, 44, of Washington, D.C., Donald M. Ramsey, 46, a mortgage broker from Alexandria, Va., and Tania Firmani, 46, a title and escrow agent from Chesapeake Beach, Md.
George was sentenced in January 2012 to a 40-month prison term. Tucker was sentenced in May 2013 to a 37-month prison term. Ramsey was sentenced in August 2013 to five years of probation, including 20 weekends in jail; restitution of $535,435; 200 hours community service; and an order of forfeiture for $366,000. Firmani was sentenced in May 2013 to 15 months of incarceration.
In announcing the sentence, U.S. Attorney Machen, Inspector in Charge Barksdale, Special Agent in Charge Rubenstein, Assistant Director in Charge Parlave and Commissioner White praised those who worked on the case from the U.S. Postal Inspection Service, U.S. Department of Housing and Urban Development - Office of Inspector General, the FBI’s Washington Field Office, the District of Columbia Department of Insurance, Securities, and Banking, and the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including: Financial Analyst Crystal Boodoo; Paralegal Specialists Donna Galindo, Corrine Laxman, Diane Hayes, Lenisse Edloe, Shanna Hays, and Nicole Wattelet; former Paralegal Specialist Sarah Reis; Litigation Services Specialist Kimberly Smith; Law Interns Nicole Audet and Jason Navia, and Assistant U.S. Attorney Diane Lucas of the Asset Forfeiture and Money Laundering Section. Finally, they acknowledged the work of Assistant U.S. Attorney Virginia Cheatham, who prosecuted the case.
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