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Wednesday 4 September 2013
Maryland Man Sentenced to Eight Years in Prison for His Role in Series of Attacks Against Taxicab Drivers-Alleged Ringleader Sentenced Last Month to Nearly 14 Years in Prison-Read the Press Release
WASHINGTON - Quinard Jones, 20, of Capitol Heights, Md., was sentenced today to eight years in prison on charges stemming from a series of attacks against taxicab drivers, U.S. Attorney Ronald C. Machen Jr. announced.
Jones pled guilty in May 2013, in the Superior Court of the District of Columbia, to one count each of armed robbery and one count of unauthorized use of a motor vehicle. He was sentenced by the Honorable Heidi M. Pasichow. Upon completion of his prison term, Jones will be placed on five years of supervised release.
The charges were filed in an investigation into the carjacking, assault, and robbery of taxicab drivers that took place in October and November of 2011. Jones and other individuals, including another defendant, Tony Copeland, were involved in several incidents in which they went to the Union Station taxicab line posing as paying customers, soliciting cab fares to the area of 44th Street NE. Once at the destination, Jones, Copeland, and their accomplices would choke the drivers from behind, or simply demand money. Among the items stolen from the several victims were hundreds of dollars in cash, cell phones, GPS devices, and a Rolex watch.
The armed robbery charge stemmed from a crime that took place on Nov. 19, 2011. That day, at about 10 p.m., Jones, Copeland, and three others all went to Union Station together in a collective plan to rob taxicab drivers. Jones, Copeland, and another individual solicited a taxicab there, and asked the driver to take them to the intersection of 45th and Eads Streets NE. When the driver arrived at the destination, Copeland reached around from the rear driver’s side seat and choked the driver from behind by placing his arms around the driver’s throat. Meanwhile, Jones and the other individual went through the driver’s belongings, stealing almost $400 in cash and a Rolex watch. Jones and Copeland ordered the cabdriver out of the taxi. One of the individuals got into the driver’s seat and drove away with the cab. The victim was able to flag down a neighbor, who gave the victim a phone to call 911. The taxicab was recovered days later by the Metropolitan Police Department (MPD), a few houses from Copeland’s residence.
The other charge stemmed from an incident on Oct. 18, 2011, also starting at Union Station. Four individuals solicited a taxicab ride and asked the driver to take them to the area of the 4700 block of Foote Street NE. Once there, one of the individuals put the driver in a choke-hold. The individuals stole $200 in cash, and a cell phone. The driver was ordered out of the vehicle, where the individuals threatened to shoot him. One of the individuals got into the taxicab and drove away. Later that day, Jones was seen driving the taxicab. MPD officers recognized the taxi as a stolen vehicle, and pursued Jones. Jones fled, leading officers from MPD and Prince George’s County on a chase that ended with Jones crashing the taxicab in Capitol Heights. The taxicab was totaled.
Copeland, 22, of Washington, D.C., was sentenced by Judge Pasichow on Aug. 16, 2013 to 13 years and 360 days of incarceration on charges of carjacking and robbery.
In announcing the sentence, U.S. Attorney Machen praised the work of those who investigated the case from the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Antoinette Sakamsa and Tony Griffith, Victim/Witness Advocate Jim Brennan, and Assistant U.S. Attorney Richard E. DiZinno, who prosecuted the matter.
13-303Maryland Man Sentenced to Eight Years in Prison for His Role in Series of Attacks Against Taxicab Drivers-Alleged Ringleader Sentenced Last Month to Nearly 14 Years in Prison-Read the Press Release
WASHINGTON - Quinard Jones, 20, of Capitol Heights, Md., was sentenced today to eight years in prison on charges stemming from a series of attacks against taxicab drivers, U.S. Attorney Ronald C. Machen Jr. announced.
Jones pled guilty in May 2013, in the Superior Court of the District of Columbia, to one count each of armed robbery and one count of unauthorized use of a motor vehicle. He was sentenced by the Honorable Heidi M. Pasichow. Upon completion of his prison term, Jones will be placed on five years of supervised release.
The charges were filed in an investigation into the carjacking, assault, and robbery of taxicab drivers that took place in October and November of 2011. Jones and other individuals, including another defendant, Tony Copeland, were involved in several incidents in which they went to the Union Station taxicab line posing as paying customers, soliciting cab fares to the area of 44th Street NE. Once at the destination, Jones, Copeland, and their accomplices would choke the drivers from behind, or simply demand money. Among the items stolen from the several victims were hundreds of dollars in cash, cell phones, GPS devices, and a Rolex watch.
The armed robbery charge stemmed from a crime that took place on Nov. 19, 2011. That day, at about 10 p.m., Jones, Copeland, and three others all went to Union Station together in a collective plan to rob taxicab drivers. Jones, Copeland, and another individual solicited a taxicab there, and asked the driver to take them to the intersection of 45th and Eads Streets NE. When the driver arrived at the destination, Copeland reached around from the rear driver’s side seat and choked the driver from behind by placing his arms around the driver’s throat. Meanwhile, Jones and the other individual went through the driver’s belongings, stealing almost $400 in cash and a Rolex watch. Jones and Copeland ordered the cabdriver out of the taxi. One of the individuals got into the driver’s seat and drove away with the cab. The victim was able to flag down a neighbor, who gave the victim a phone to call 911. The taxicab was recovered days later by the Metropolitan Police Department (MPD), a few houses from Copeland’s residence.
The other charge stemmed from an incident on Oct. 18, 2011, also starting at Union Station. Four individuals solicited a taxicab ride and asked the driver to take them to the area of the 4700 block of Foote Street NE. Once there, one of the individuals put the driver in a choke-hold. The individuals stole $200 in cash, and a cell phone. The driver was ordered out of the vehicle, where the individuals threatened to shoot him. One of the individuals got into the taxicab and drove away. Later that day, Jones was seen driving the taxicab. MPD officers recognized the taxi as a stolen vehicle, and pursued Jones. Jones fled, leading officers from MPD and Prince George’s County on a chase that ended with Jones crashing the taxicab in Capitol Heights. The taxicab was totaled.
Copeland, 22, of Washington, D.C., was sentenced by Judge Pasichow on Aug. 16, 2013 to 13 years and 360 days of incarceration on charges of carjacking and robbery.
In announcing the sentence, U.S. Attorney Machen praised the work of those who investigated the case from the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Antoinette Sakamsa and Tony Griffith, Victim/Witness Advocate Jim Brennan, and Assistant U.S. Attorney Richard E. DiZinno, who prosecuted the matter.
13-303Manderson Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Manderson, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on August 28, 2013, by Chief Judge Jeffrey L. Viken, United States District Court.
Frank William Holy Rock, age 22, was sentenced to 24 months of imprisonment, 3 years of supervised release, and ordered to pay $100 to the Federal Crime Victims Fund.
On May 20, 2012, a group of young men were drinking and enjoying a bonfire in a pasture two miles from Manderson. In the early morning hours, another group of young men, including Holy Rock, approached the group at the bonfire, yelling obscenities and challenging them to a fight. A fight ensued between some members of the two groups, and Holy Rock hit another man with a stick and kicked him in the head repeatedly, causing a laceration to the head, which required stitches, and a fractured hand. Holy Rock pled guilty on March 28, 2013.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Sarah B. Collins prosecuted the case.Man Who Took Sexually Explicit Photographs of 7-Year-Old and Posted Them Online Sentenced to 20 Years in PrisonRead the Press Release
RENO, Nev. – A man who took pornographic photographs of a seven-year-old relative and posted them on an Internet file sharing site, has been sentenced to 20 years in prison and lifetime supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Gregorio Evaristo Sarabia-Garcia, 31, of Sparks, Nev., was sentenced on Tuesday, Sept. 3, 2013, by U.S. District Judge Miranda M. Du. Sarabia-Garcia pleaded guilty on June 3, 2013, to one count of production of child pornography and one count of receipt of child pornography.
“The safety and well-being of our children is a top priority for the Department of Justice and our office,” said U.S. Attorney Bogden. “Our law enforcement partners will continue to aggressively search out these sexual predators and our office will continue to aggressively prosecute these child exploitation cases to protect our community and our children.”
According to the court records, between March 27 and April 26, 2012, an investigator with the Internet Crimes Against Children (ICAC) Task Force in Reno conducted an online undercover operation on an Internet file sharing network in an effort to identify individuals who were advertising, possessing, and distributing child pornography in northern Nevada. The investigator determined that Sarabia-Garcia, who lived in an apartment in Sparks, had placed numerous images of child pornography on the file sharing network. Investigators obtained and executed search warrants for several computers that Sarabia-Garcia possessed at his apartment, and found pornographic photographs of a seven-year-old relative of Sarabia-Garcia, as well as over 150 additional images of child pornography which Sarabia-Garcia had received from the Internet. These images depicted prepubescent minors engaged in sexually explicit conduct, including some files that depicted sadistic and masochistic conduct. Sarabia-Garcia admitted to investigators that he had taken the photographs of his relative with his cellular telephone and transferred them to his computer.
The investigation was conducted by U.S. Immigration and Customs Enforcement, with the assistance of the Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Carla Higginbotham.
The case has been brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project
Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet
safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Man from Mexico Sentenced for Illegal Reentry After DeportationRead the Press Release
United States Attorney Brendan V. Johnson announced that a man from Mexico convicted of Illegal Reentry After Deportation was sentenced on August 28, 2013, by U.S. District Judge Roberto A. Lange.
Jesus Ochoa Aguirre, a/k/a Felipe Cabrera Aguirre, age 30, was sentenced to 12 months and 1 day of imprisonment and a $100 special assessment to the Federal Crime Victims Fund.
Ochoa Aguirre was indicted by a federal grand jury on October 10, 2012, and pled guilty to the charge on July 8, 2013.
The charge stems from an incident on or about September 24, 2012, when Ochoa Aguirre, an alien, was found in the United States in the District of South Dakota, after having been previously deported from the states on or about April 16, 2010. Ochoa Aguirre had not obtained the consent of the Secretary of the United States Department of Homeland Security and the Attorney General of the United States to apply for admission into the states. Ochoa Aguirre was found by law enforcement after a Fort Pierre resident reported that Ochoa Aguirre had tried to sell him methamphetamine.
The investigation was conducted by the Department of Homeland Security. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Ochoa Aguirre was immediately turned over to the custody of the U.S. Marshals Service.Lyndonville Man Sentenced to 18 Years for Sexual Exploitation of A ChildRead the Press Release
The United States Attorney’s Office has announced that yesterday, Chief United States District Court Judge Christina Reiss sentenced Benjamin H. Weisinger, 48, of Lyndonville, Vermont, to 216 months in federal prison for production, receipt and possession of child pornography. Weisinger was convicted of the charges in April after a four-day jury trial. The production of child pornography conviction carried a mandatory minimum sentence of 15 years in prison.
According to trial testimony and court documents, Weisinger began his sexual abuse of the minor female when she was 9 or 10 years old. The abuse continued for several years and when the minor female was approximately 12 years old, Weisinger had her create sexually explicit videos and had her send him texts of the same conduct. One of these videos was discovered by the minor’s mother in November 2011 and the mother called the police. A later search of Weisinger’s computer and email accounts revealed numerous sexually explicit videos depicting the same minor female.
The case was investigated by the Vermont State Police, specifically, members of the Special Investigations Unit located in Hyde Park and the Vermont Internet Crimes Against Children Task Force. The Department of Homeland Security also assisted in the investigation. The prosecutors on the case were Assistant United States Attorneys Wendy L. Fuller and Paul J. Van de Graaf.
Little Eagle Man Charged with Domestic Assault by an Habitual Offender and Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man has been indicted by a federal grand jury.
Chat Moses Bobtail Bear Sr., a/k/a Chate Bobtail Bear Sr., age 35, was indicted by a federal grand jury on August 21, 2013. 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 habitual offender offense is 5 years of imprisonment. The maximum penalty upon conviction of the assault charge is 10 years of imprisonment. All counts 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 several alleged assaults of an individual who, at the time of the assaults, was the spouse or intimate partner of Bobtail Bear.
The charges are merely accusations, and Bobtail Bear 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.
Bobtail Bear was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.Lexington Business Owner Sentenced for False Tax ReturnRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Lexington, Mo., business owner has been sentenced in federal court for filing a false income tax return after claiming earned income tax credits despite his extravagant lifestyle.
Christopher Huffman, 49, of Lexington, was sentenced by U.S. District Judge Dean Whipple on Tuesday, Sept. 3, 2013, to two years and three months in federal prison without parole. The court also ordered Huffman to pay $484,505 in restitution.
Huffman is the owner of IG Construction, an asphalt and tree-trimming business formerly known as Interstate General Contractors. Huffman, who pleaded guilty on Feb. 4, 2013, admitted that he engaged in a scheme to falsely under-report the gross receipts for his business on his tax returns for tax years 2006-2008 in order to significantly reduce his income tax liability.
Huffman claimed business expenses almost equal to his gross receipts, so that his reported income was low enough to claim the earned income tax credit. The earned income tax credit is a refundable tax credit intended for workers earning a low to moderate income, which results in a tax refund for those whose credit exceeds the amount of taxes owed.
For tax years 2006 - 2008, while claiming he earned less than $20,000 per year, Huffman lived in and owned a 4,000-square-foot house which he valued at $1.6 million and which had a 13-car garage, an in-ground pool/lake, a basketball court and a volleyball court. Huffman bought a 2007 Cadillac Escalade, two classic Chevrolet Camaros and two Harley Davidson motorcycles during this time.
Huffman under-reported his gross receipts for the three tax years in question, 2006 through 2008, by a total of $1,340,379. The tax loss to the United States is $484,505.
In 2007, Huffman claimed in a loan application that he had $10,700 in cash and received a salary of $65,000, and listed his net worth at $2.4 million. In 2008, Huffman claimed in another loan application that he received a salary of $100,000 and that his net worth was almost $3 million.
This case was prosecuted by Assistant U.S. Attorney Kate Mahoney. It was investigated by IRS-Criminal Investigation.Law Enforcement Arrests Eight Linked to Heroin, Meth and Cocaine TraffickingRead the Press Release
In coordinated arrests this morning, the FBI, ATF, U.S. Postal Inspection Service and Seattle Police Department took eight people into custody for a wide ranging drug trafficking conspiracy, announced U.S. Attorney Jenny A. Durkan. Members of the conspiracy maintained drug stash houses throughout the Pacific Northwest. Search warrants were served today in Vancouver, Covington, Puyallup, SeaTac, Tukwila, Seattle and Tacoma, Washington. Some of the drug traffickers conducted their deals at a Mexican restaurant in the South Park neighborhood of Seattle: the Juan Colorado. The restaurant was closed today while law enforcement searched the premises. The defendants will make their initial appearances at 2:00 PM today in U.S. District Court in Seattle.
“The members of this drug trafficking conspiracy brought meth, cocaine and heroin to our communities preying on those with addictions to line their own pockets,” said U.S. Attorney Jenny A. Durkan. “This lengthy investigation led to seizures of illegal weapons as well as street drugs. This strong law enforcement collaboration is essential to keeping our communities safe.”
According to court records, the investigation of the drug trafficking organization began in November 2011. Surveillance indicates the conspirators brought the drugs up from California and sold them at various locations ranging from auto wrecking yards in Auburn to outside restaurants at the Southcenter shopping mall. Many of the drug deals were made in or around the Juan Colorado Mexican restaurant on 14th Avenue South, Seattle.
“Today’s operation is just the beginning of the end for an aggressive drug and weapons trafficking organization,” said FBI Special Agent-In-Charge Laura M. Laughlin. “The FBI will continue to work with the Seattle Police Department, ATF and other law enforcement agencies to bring an end to the drugs, guns and violence that these criminals bring to our streets.”
“Mixing criminals, guns and drugs is a foul recipe for any neighborhood,” said Seattle Police Chief Jim Pugel. “This organization spread its rotten ingredients throughout Puget Sound. Working together with our local and federal partners, we were able to ‘eighty-six’ this criminal enterprise, taking it off of the menu for good.”
Members of the drug conspiracy arrested today following their indictment by the grand jury for drug distribution include: JOSE AYALA MAZORAQUIL, 39, of Tukwila, Washington; ALFONSO ROJO LOPEZ, 26, and JOSEPH EDWARD BELL, 62, both of SeaTac, Washington; PEDRO VELAZQUEZ GOMEZ, 27, and BENJAMIN CASTRO, 45, both of Seattle, Washington. Three people were arrested on criminal complaints: VICTOR AMAYA CRUZ, 40, of Auburn, Washington for distribution of cocaine and methamphetamine and two additional defendants who will appear in court at 2:00 PM today.
The charges contained in the indictment and complaints are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The investigation was led by the FBI’s Safe Streets Task Force including officers and agents from the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the U.S. Postal Inspection Service (USPIS). Today’s arrests and search warrants involved a number of law enforcement agencies: the King County Sherriff’s Office, Pierce County Sherriff’s Office, Tacoma Police Department and the Valley SWAT Team (Renton, Kent, Tukwila and Auburn Police Departments).
The case is being prosecuted by Assistant United States Attorneys Jeffrey Backhus and Kate Crisham.
Last Defendants Sentenced in Meth Trafficking ConspiracyRead the Press Release
WAYCROSS, GA – Charles W. Johns, 60, of Hoboken, Georgia was sentenced last month by United States Chief District Court Judge Lisa Godbey Wood to 78 months in prison for his role in a methamphetamine conspiracy operating in the Waycross, Georgia area. Judge Wood previously sentenced 4 others from the Waycross area for their roles in the drug trafficking conspiracy. Stephen Miles, 30, was sentenced to 124 months in prison; Pamela Moore, 45 and the wife of defendant Johns, was sentenced to 48 months in prison; Corey B. Perkins, 33, was sentenced to 37 months in prison; and, Anna Hambrick, 28, was sentenced to 20 months in prison.
Evidence presented during the sentencing hearings showed that defendant Miles was the leader and organizer of a methamphetamine trafficking ring operating out of the Ware and Brantley County areas. In January 2012, several undercover purchases of methamphetamine were made from members of the conspiracy. Eventually, investigating agents executed search warrants where a weapon and a significant amount of methamphetamine were seized.
The investigation of the case was led by the DEA and the Brantley County Sheriff’s Office. The GBI and the Charlton County Sheriff’s Office also assisted in the investigation. Assistant United States Attorney Carlton Bourne prosecuted the case on behalf of the United States. For additional information, contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Jury Convicts Chairman of Oil and Gas Well Promotions Company on Conspiracy and Securities FraudRead the Press Release
Always Consulting, Inc. Located in Richardson, Texas
DALLAS — The chairman and director of field operations of Always Consulting, Inc. (ACI), an oil and gas well promotions company with offices in Richardson, Texas, was convicted this morning by a federal jury on one count of conspiracy to commit securities fraud and 23 substantive counts of securities fraud. David Kevin Lewis, aka “David Shane Lewis” and “DW,” 52, of Albany, Kentucky, faces a maximum statutory penalty of five years in prison and a $250,000 fine per count. A forfeiture of $2,538,642 will be ordered at the defendant’s sentencing; restitution may also be ordered. Chief U.S. District Judge Sidney A. Fitzwater, who presided over the week-long trial, set a sentencing date of December 20, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Lewis’s co-defendants in the case, Bruce Kyle Griffith, 59, of Dallas, and Thomas Alden Markham, Jr., 63, of Plano, Texas, have each pleaded guilty to their roles and are scheduled to be sentenced on December 6, 2013. Griffith, who was the president and CEO of ACI, pleaded guilty to one count of conspiracy to commit securities fraud and one count of securities fraud. Markham, ACI’s chief geologist, pleaded guilty to one count of misprision of a felony.
Lewis, Griffith and Markham conspired together to scheme to obtain money and property by making untrue statements and omitting material facts to defraud investors, located throughout the United States, who purchased interests in well program units, representing fractional, undivided interests in oil, gas or other mineral rights and investment contracts.
They sent investment documents and monthly investment newsletters from ACI to induce investors to invest money and purchase interests in the Rattlesnake Springs Drilling Program or other oil and gas drilling programs. Rattlesnake, was one of several investment programs offered and sold by ACI to investors, was to be located in Osage County, Oklahoma.
They also used ACI sales employee “fronters” to contact prospective investors and referred interested and financially-able investors to ACI employee “closers,” including Lewis and Griffith, who contacted the interested investors to convince them to invest. The “fronters” were equipped with scripts, pitches and talking points all touting the investment and designed to make prospective investors believe that ACI’s programs were potentially profitable investments.
They also provided the ACI sales employees with a “do not call” list, entitled “Undercover Regulators,” which listed contact information of individuals the defendants suspected of being state or federal regulators posing as potential investors.
The defendants misapplied and converted the Rattlesnake Springs Drilling Program investor funds to their own use and benefit, and the use and benefit of others, including the purchase of real and personal property and to pay for expenses of other ACI programs.
The defendants falsely stated that: ACI would perform all necessary services to complete the Rattlesnake Springs Drilling Program; ACI would use investor funds to begin site preparation, drilling, testing and completion of the Rattlesnake Springs Drilling Program wells; ACI would pay all costs necessary to get the wells into production for approximately $3.5 million; ACI had influence inside the Osage Nation in Oklahoma and could acquire oil and gas leases on terms unavailable to others; pipelines had been laid; and Griffith begin in the oil and gas business in 1985 as a private pilot flying oil executives and equipment to foreign countries.
The defendants concealed from investors that: Rattlesnake investor funds were being comingled with funds from other ACI projects and were being used to pay operating expenses of other ACI projects; most of Rattlesnake’s investor funds had been misapplied and diverted an no longer available to drill the promised 20 wells; funds invested in Rattlesnake had been diverted, for the use and benefit of the defendants; ACI relied on investor funds to operate and upon production revenue from oil and gas wells.
ACI’s offering memorandum identified “DW” and “Griffith” as registered operators in Texas and Oklahoma, but omitted that “DW” was Lewis and that Lewis and Griffith weren’t registered to sell securities in Texas. ACI represented that “DW” (Lewis) had 25 years’ experience in finance, investing, management and the oil and gas industry, but omitted facts including: Lewis was a convicted felon, having been convicted in 2000 of securities fraud and conspiracy to commit mail fraud, in connection with oil and gas offerings; Lewis was under federal court orders to pay approximately $2.2 million in restitution to previously defrauded oil and gas investors; and Lewis was under an injunction barring him from violating federal securities laws in connection with oil and gas offerings.
ACI’s offering memorandum also noted that Griffith had 20 years’ experience in the oil and gas industry, having started out as a private pilot with a twin engine rating and instrument rating. Griffith, however, was never a pilot, had little experience in the industry, and in fact, was a convicted felon, having been specifically convicted in federal court of bank robbery in 1994 and conspiracy to possess and utter counterfeit federal reserve notes in 1989.
ACI’s offering stated that Markham had more than 30 years in the oil and gas industry as a geologist, supervisor and manager, but failed to disclose he was a convicted felon, having been convicted of mail fraud in 2000 in connection with an oil and gas offering, and that as part of his sentence, he was under court order to pay nearly $400,000 in restitution to defrauded investors.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The case is being investigated by the FBI and the Texas State Securities Board (TSSB). Assistant U.S. Attorney Joseph Revesz and TSSB Enforcement Attorney Suzanne Steinmetz are in charge of the prosecution.
Jonathan James Henderson 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, JONATHAN JAMES HENDERSON, a 28-year-old resident of Great Falls, was sentenced to a term of:
Prison: 90 months
Special Assessment: $100
Supervised Release: 4 years
HENDERSON was sentenced in connection with his guilty plea to possession with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan R. Whittaker, the government stated it would have proved at trial the following:
Between February and April of 2011, in Cascade County, HENDERSON possessed with the intent to distribute 50 grams or more of a substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HENDERSON will likely serve all of the time imposed by the court. In the federal system, HENDERSON 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 Federal Bureau of Investigation.
Italian National Pleads Guilty to Illegal Reentry After Prior DeportationRead the Press Release
Francesco Gulino was arrested in April in Raleigh Co. for possessing heroin
BECKLEY, W.Va. – An Italian national who illegally reentered the United States after being previously deported pleaded guilty today in federal court in Beckley, announced United States Attorney Booth Goodwin. Forty-three-year-old Francesco Gulino, also known as “Frank Gulino,” of Italy, was indicted in June 2013 for the federal offense of aggravated reentry. Gulino had been previously convicted of attempted felonious assault in May 2009 in the Court of Common Pleas, Cuyahoga County, Ohio. Gulino was later deported from the United States on or about April 20, 2011. Sometime after April 20, 2011, Gulino illegally reentered the United States from Canada. Gulino had not obtained approval of the Secretary of Homeland Security to reapply for admission.
On April 20, 2013, Gulino was arrested by the West Virginia State Police in Raleigh County, W.Va., for possession with intent to deliver a controlled substance. In July 2013, Gulino was convicted in Raleigh County Circuit Court of possession with intent to deliver heroin.
Gulino faces up to 20 years in federal prison when he is sentenced in January 2014 by United States District Judge Irene C. Berger. The defendant will also face an administrative deportation proceeding after he discharges his federal sentence.
The U.S. Department of Homeland Security, assisted by the West Virginia State Police and the Raleigh County Prosecuting Attorney’s Office conducted the investigation. Assistant United States Attorney Erik S. Goes is handling the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Iowa Woman Pleads Guilty to Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that Dana Hoover, a/k/a Dana Strawn, age 51, of Cushing, Iowa, appeared before U.S. District Judge Roberto A. Lange on August 29, 2013, and pled guilty to Count I of the Indictment that charged her with Distribution of a Controlled Substance.
The maximum penalty upon conviction is 20 years of imprisonment and/or a $1,000,000 fine, a mandatory 3 years up to life of supervised release, an additional 2 years of supervised release upon revocation, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
Hoover was introduced to an undercover agent in April 2012. After conversation and exchanging text messages, Hoover agreed to sell methamphetamine to the agent, whom Hoover knew to be located in the central South Dakota area. The agent wired money to Hoover and arrangements were made for the agent to pick up the methamphetamine from Hoover. On May 10, 2012, at a truck stop near Sioux Falls, South Dakota, Hoover met the agent and delivered the methamphetamine.
The State Health Lab confirmed that the substance Hoover sold on May 10, 2012, was methamphetamine with a weight of 7.39 grams. The total amount of methamphetamine attributed to Hoover for distribution was at least 20 grams but less than 30 grams.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Hoover was remanded to the custody of the U.S. Marshals Service pending sentencing, which has been set for November 21, 2013.Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on August 30, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, the following individuals were arraigned:
STEVE HUMISTON, a 56-year-old resident of Tacoma, Washington; JOHN JOHNSON, a 57-year-old resident of Locust Grove, Virginia; SCOTT LONG, a 53-year-old resident of Portland, Oregon; and PAUL WENCEWICZ, a 47-year-old resident of Polson, appeared on charges of child exploitation enterprise and conspiracy to advertise child pornography. In addition, WENCEWICZ was also charged with obstruction of justice. They are currently detained.
If convicted of child exploitation enterprise, they each face a mandatory minimum of 20 years in prison and could be sentenced to life, a $250,000 fine, and a minimum of 5 years supervision. In addition, if convicted of conspiracy to advertise child pornography, they each face a mandatory minimum of 15 to 30 years in prison, a $250,000 fine, and a minimum of 5 years supervision. WENCEWICZ also faces 20 years in prison, a $250,000 fine, and 3 years supervised release if convicted of obstruction of justice.
Assistant U.S. Attorney Cyndee L. Peterson is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bozeman Police Department.
The defendants pled not guilty to the charges.
The charges, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
In the Spotlight: Loretta LynchRead the Press Release
In the Spotlight: Loretta Lynch
Imperial Gangster Gang Member Charged with MurderRead the Press Release
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - United States Attorney David Capp announced that Raymond Campos, a member of the Imperial Gangster street gang, pled guilty today in US District Court to racketeering conspiracy.Campos admitted to being a member of the Imperial Gangsters and participating in the operation of that criminal enterprise through shootings and homicides.Campos also agreed to cooperate with the government in its ongoing investigation into criminal gangs.
In addition to his plea of guilty to the RICO conspiracy, Campos also pled guilty to murder in aid of racketeering activity that was charged in a separate Information.Campos admitted to the murder of Steven Rodriguez in East Chicago on February 9, 2002.Rodriguez was 14 years of age at the time of his death.
The Rodriguez homicide is the 20th previously uncharged homicide that the United States Attorney’s Office has charged in its ongoing efforts against organized street gangs, particularly the Imperial Gangsters and Latin Kings.
United States Attorney David Capp stated, “It does not matter how long ago some of these homicides may have occurred.We are actively investigating any number of cold homicides.When the evidence warrants, we will seek indictments.It is our intention to keep the pressure on these organized street gangs and hold them accountable for their criminal acts, regardless of when they occurred.”
There are 20 previously uncharged homicides being dealt with in federal court.Those attributed to members of the Imperial Gangster street gang are:
1. Steven Rodriguez, February 9, 2002 in East Chicago
2. Anuar Paez, July 24, 2004 in East Chicago
3. Guadalupe Trevino, July 24, 2005 in Gary
4. Juan Murillo, Sr., March 22, 2007 in East Chicago
5. Rene Alonzo, September 16, 2007 in East Chicago
6. Luis Ortiz, September 26, 2007 in Hammond
7. Mario Soriano, March 25, 2008 in East Chicago
8. Michael Sessum, June 3, 2008 in East Chicago
9. Miguel Meijias, June 3, 2008 in East Chicago
10. Harris Brown, October 9, 2008 in East Chicago
11. Miguel Colon, February 10, 2010 in East Chicago
12. Jesus Alvarez, March 26, 2010 in East Chicago
13. Latroy Howard, June 10, 2010 in East Chicago
Previously uncharged homicides attributed to members of the Latin Kings street gang are:
14. Jonathan Zimmerman, December 26, 2003 in Hammond
15. Edward Delatorre, November 26, 2006 in Chicago
16. James Walsh, February 25, 2007 in Griffith
17. Gonzalo Diaz, February 25, 2007 in Griffith
18. Jose Cortez, May 25, 2008 in East Chicago
19. Christina Campos, April 22, 2009 in Chicago
Last week, Oscar Cosme and Kiontay Pennington were charged with the previously uncharged murder of Julio Cartenaga on May 16, 2003 in East Chicago.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the East Chicago Police Department, and the Federal Bureau of Investigation, with assistance from the Gary Police Department, the Hammond Police Department and the Lake County HIDTA.This case has been assigned to and will be prosecuted by Assistant United States Attorney David J. Nozick and Department of Justice Trial Attorney Bruce Hegyi of the Capital Case Unit.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Illegal Re-Entry After Attempted Capital Murder Results in Significant SentenceRead the Press Release
McALLEN, Texas - Eduardo Castellano-Espinoza, 50, of Miguel Aleman, Tamaulipas, Mexico, has been handed a 78-month federal prison sentence, announced United States Attorney Kenneth Magidson. Castellano-Espinoza pleaded guilty June 18, 2013, to being unlawfully present in the U.S. after deportation.
Just a short time ago, U.S. District Judge Randy Crane upwardly departed from the U.S. Sentencing Guidelines, taking into consideration the defendant’s prior conviction and overall aggravating circumstances. It is expected that he will once again face deportation proceedings following completion of the federal prison term.
On May 2, 2013, Castellano-Espinoza was found attempting to exit the United States. When approached by federal agents, he attempted to evade by fleeing to Mexico. After he was apprehended, it was determined he had been deported in 2010 after receiving a 40-year prison sentence for attempted capital murder of a Texas peace officer. In course of that crime, a Starr County sheriff’s deputy was shot and an elderly woman was pinned beneath Castellano-Espinoza’s out-of-control vehicle.
Castellano-Espinoza will remain in custody pending transfer to a U.S. Bureau of Prison’s facility to be determined in the near future.
This case was investigated by Border Patrol and was prosecuted by Assistant United States Attorney Jason C. Honeycutt.
Illegal Alien Sentenced on Illegal Reentry CaseRead the Press Release
BOSTON – A resident of the Dominican Republic was sentenced today for illegally reentering the United States after being previously deported.
Odelio Alberto Sepulveda Guerrero, 35, of Dorchester, was sentenced by U.S. District Court Judge Joseph L. Tauro to 18 months in prison, and three years of supervised release. Guerrero also faces deportation to the Dominican Republic upon completion of his prison term. In June 2013, Guerrero pleaded guilty to illegal reentry of a deported alien.
Guerrero had previously been removed from the United States in 2002 and 2009; he re-entered the United States illegally at some point after each removal without permission. In 2002, Guerrero arrived to the United States from Santo Domingo, Dominican Republic and attempted to gain admission by presenting a U.S. passport under a false name to immigration inspectors in New York. Additionally, in 2008, he was convicted of felony narcotics offenses. Guerrero most recently re-entered the United States at an unknown place and date and came to the attention of agents in March 2013.
United States Attorney Carmen M. Ortiz; and Bruce M. Foucart, Special Agent in Charge U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz’s Major Crimes Unit.Harrisburg Woman Indicted in Mail Fraud SchemeRead the Press Release
Actions Allegedly Defrauded Social Security and Veteran Benefits Recipients
Terri Ann Deneal, 51, of Harrisburg, IL, was charged on September 4, 2013, with Mail Fraud, in an Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The indictment charges that from January 1, 2005, through May of 2011, Deneal executed a scheme to defraud Social Security Administration and Department of Veteran Affairs benefit recipients of approximately a half-million dollars. The fraud took place while Deneal was acting as a representative payee and fiduciary for federal aid recipients, who because of physical or mental ailments were unable to handle their own finances. The indictment further alleges that Deneal used the funds of these recipients to pay her own bills and expenses.
Mail fraud carries penalties of up to 20 years of imprisonment, a fine of up to $250,000 and up to 3 years of supervised release to follow any incarceration.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Offices of Inspector General, Office of Investigations for the Social Security Administration and the Department of Veterans Affairs, as well as the Carbondale Police Department.
The case is being prosecuted by Assistant United States Attorney Ranley R. Killian.
Gunman in Armed Bank Robbery Sentenced to 10 years in PrisonRead the Press Release
OAKLAND – Gary Casdell Fite, II, was sentenced today to 10 years in prison for armed bank robbery and brandishing a firearm in furtherance of a crime of violence, United States Attorney Melinda Haag announced.
In pleading guilty, Fite admitted to robbing the Mechanics Bank on Pinole Valley Boulevard in Pinole, Calif., on March 1, 2013, with the help of a getaway driver and a lookout. Fite admitted that he was the gunman in the armed robbery. According to the plea agreement, Fite entered the bank, brandished his loaded firearm, and ordered everyone to get down on the ground. Fite then jumped over the teller counter and demanded money from two victim tellers. While demanding money, Fite pointed his loaded gun at the head of one of the victim tellers. Fite stole $3,292 from the bank.
Fite, 23, of Oakland, was indicted by a federal Grand Jury on March 28, 2013, and is currently in federal custody. The sentence was handed down by U.S. District Court Judge Phyllis J. Hamilton. In addition to his prison term, Fite was also sentenced to a 5-year period of supervised release.
Co-defendant and getaway driver Regina Dean, 37, of Antioch, was sentenced on August 21, 2013, to 5 years in prison. The alleged lookout, Kevin Tyrone Buford, 27, of Vallejo, was indicted on August 30, 2013, and his next court appearance is scheduled before Judge Hamilton on September 18, 2013, at 1:30 p.m.
Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance Legal Assistant Janice Pagsanjan. The prosecution is the result of an investigation by the FBI.
Four Army National Guard Soldiers Plead Guilty in Connection with Bribery <br /> and Fraud Schemes to Defraud the U.S. Army National Guard BureauRead the Press Release
Four current and former soldiers of the U.S. Army National Guard pleaded guilty today for their roles in bribery and fraud schemes that caused a total of more than $210,000 in losses to the U.S. Army National Guard Bureau.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
Melanie D. Moraida, 33, of Pearland, Texas; Kimberly N. Hartgraves, 28, of League City, Texas; Lashae C. Hawkins, 27, of San Antonio; and Vanessa Phillips, 35, of Houston, all pleaded guilty to one count of conspiracy and one count of bribery.
The cases against all four defendants arise from an investigation involving allegations that former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to illegally obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 25 individuals, 15 of whom have pleaded guilty.
According to court documents filed in all four cases, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker, Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the Army National Guard. Through this program, a participating soldier could receive bonus payments for referring another individual to join. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
Moraida, Hartgraves, Hawkins and Phillips all admitted that they paid Army National Guard recruiters for the names and Social Security numbers of potential Army National Guard soldiers. They further admitted that they used the personal identifying information for these potential soldiers in claiming that they were responsible for referring the potential soldiers to join the Army National Guard, when in fact they had not referred them.
As a result of these fraudulent representations, Moraida collected approximately $14,500 in fraudulent bonuses; Hartgraves collected approximately $2,000 in fraudulent bonuses; Hawkins collected approximately $33,000 in fraudulent bonuses; and Phillips collected approximately $10,000 in fraudulent bonuses.
The charge of bribery carries a maximum penalty of 15 years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss. The charge of conspiracy carries a maximum penalty of five years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss.
The defendants are all scheduled to be sentenced on Dec. 17, 2013, before U.S. District Judge Lee H. Rosenthal in Houston.
The cases are being investigated by special agents from the San Antonio Fraud Resident Agency of Army Criminal Investigation Command’s Major Procurement Fraud Unit. These cases are being prosecuted by Trial Attorneys Brian A. Lichter, Sean F. Mulryne and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney John Pearson of the Southern District of Texas.Four Army National Guard Soldiers Plead Guilty in Connection with Bribery and Fraud Schemes to Defraud the U.S. Army National Guard BureauRead the Press Release
To Date, 15 Individuals Have Pleaded Guilty in Ongoing Corruption Investigation
HOUSTON – Four current and former soldiers of the U.S. Army National Guard pleaded guilty today for their roles in bribery and fraud schemes that caused a total of more than $210,000 in losses to the U.S. Army National Guard Bureau.
United States Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division made the announcement.
Melanie D. Moraida, 33, of Pearland, Kimberly N. Hartgraves, 28, of League City, Lashae C. Hawkins, 27, of San Antonio, and Vanessa Phillips, 35, of Houston, all pleaded guilty to one count of conspiracy and one count of bribery.
The cases against all four defendants arise from an investigation involving allegations that former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to illegally obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 25 individuals, 15 of whom have pleaded guilty.
According to court documents filed in all four cases, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the Army National Guard. Through this program, a participating soldier could receive bonus payments for referring another individual to join. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
Moraida, Hartgraves, Hawkins and Phillips all admitted they paid Army National Guard recruiters for the names and Social Security numbers of potential Army National Guard soldiers. They further admitted they used the personal identifying information for these potential soldiers in claiming they were responsible for referring the potential soldiers to join the Army National Guard, when in fact they had not referred them.
As a result of these fraudulent representations, Moraida collected approximately $14,500 in fraudulent bonuses; Hartgraves collected approximately $2,000 in fraudulent bonuses; Hawkins collected approximately $33,000 in fraudulent bonuses; and Phillips collected approximately $10,000 in fraudulent bonuses.
The charge of bribery carries a maximum penalty of 15 years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss, while conspiracy carries a maximum penalty of five years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss.The defendants are all scheduled to be sentenced on Dec. 17, 2013, before U.S. District Judge Lee H. Rosenthal in Houston.
The cases are being investigated by special agents from the San Antonio Fraud Resident Agency of Army Criminal Investigation Command’s Major Procurement Fraud Unit. These cases are being prosecuted by Assistant U.S. Attorney John Pearson and Trial Attorneys Brian A. Lichter, Sean F. Mulryne and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section.
Fort Thompson Man Pleads Guilty to Felon in Possession of FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that Bryant Ross, age 39, of Fort Thompson, South Dakota, appeared before U.S. District Judge Roberto A. Lange on August 29, 2013, and pled guilty to the Indictment that charged him with Felon in Possession of Firearm.
The maximum penalty upon conviction is 10 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, an additional 2 years of supervised release upon revocation, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an incident on February 23, 2013, when a Bureau of Indian Affairs Officer made contact with Ross in the Old Fort campground area off of Highway 47. It was learned at this time that Bryant “Spud” Ross had an active tribal warrant. During his arrest on the tribal warrant, it was learned there were two firearms in Ross’ possession.
Ross was convicted in 1998 of Possession of Controlled substance-Meth, which prohibits him from possessing a firearm.
The investigation was conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Ross was remanded to the custody of the U.S. Marshals Service pending sentencing, which has been set for November 21, 2013.Former Traffic Safety Service LLC Vice President Pleads Guilty to Tax EvasionRead the Press Release
NEWARK, N.J. – A former vice president at a South Plainfield, N.J., traffic safety equipment business admitted today to evading income taxes on more than $2 million in withdrawals he made from the business for his own use, U.S. Attorney Paul J. Fishman announced.
Anthony R. Pecoraro, 50, of Colts Neck, N.J., pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of tax evasion.
According to documents filed in this case and statements made in court:
Pecoraro worked in 2008 and 2009 at Traffic Safety Service LLC, which provided traffic safety equipment and other traffic related services to local and state municipalities and private businesses. In connection with his position as a vice president, he had access to the company’s business account.
During his guilty plea proceeding, Pecoraro admitted he wrote checks for unauthorized cash withdrawals for a total of approximately $2,126,200 between June 2008 and December 2009, which he took for personal use. Pecoraro acknowledged he failed to report this money as taxable income for calendar years 2008 and 2009 in the amounts of $563,800 and $1,562,400, respectively, and that if he had reported the additional cash on his income tax returns he would have owed the government approximately $733,970.
The charge to which Pecoraro pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Dec. 4, 2013.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark; and IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the investigation.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
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Defense counsel: John McDonald Esq., Somerville, N.J.Pecoraro, Anthony Information
Former Title Company Employee Pleads Guilty to Conspiracy to Commit Bank FraudRead the Press Release
HOUSTON – Harris County resident Maria Eliza Garza has pleaded guilty to conspiring to defraud seven different Houston-area banks or more than $2 million in 2007 and 2008, announced United States Attorney Kenneth Magidson.
As outlined in documents filed with the court and admitted by Garza during her guilty plea, she and a co-conspirator agreed to carry out a check kiting scheme that targeted seven different financial institutions in the Houston area. While the co-conspirator allegedly devised the scheme which used multiple bank accounts held in the name of title companies he controlled, Garza admitted she assisted by discussing which bank accounts needed money, preparing checks to sign and depositing signed checks at the banks.
Garza, of Houston, admitted as part of her plea that she helped carry out the scheme from at least January 2007 through June 2008. To do so, Garza prepared checks drawn on the title companies’ accounts. The co-conspirator signed the checks and both knew the accounts lacked sufficient funds to cover the checks. Garza deposited the checks into other accounts controlled by the co-conspirator, which artificially inflated the account balances. They would then write additional checks using the artificially inflated balances and deposit them into either the original issuing account or other accounts controlled by the co-conspirator.
Garza also admitted she and conducted the scheme to artificially inflate the account balances and place the funds at her co-conspirator’s disposal to use as interest-free loans and lines of credit. They continued to carry out the scheme even after three of the banks discovered the kiting activity and shut down the relevant accounts. When the scheme finally collapsed in June 2008, the total loss to the affected banks was $2,099,65.72.
U.S. District Judge Lee H. Rosenthal, who accepted Garza’s plea, has set sentencing for Dec. 17, 2013, at which time she faces up to five years in federal prison and a $250,000 fine or twice the pecuniary gain or loss.
The case is being investigated by the FBI and being prosecuted by Assistant U.S. Attorney John Pearson.
Former TVA Vice President Pleads Guilty to Unlawful Financial Investments in Iran and Filing False Income Tax ReturnsRead the Press Release
KNOXVILLE, Tenn. – On September 4, 2013, former TVA Vice President Masoud Bajestani, 58, formerly of Chattanooga, Tenn. pleaded guilty to conspiracy to violate the International Emergency Economic Powers Act (IEEPA) and Iranian Transactions Regulations, and two counts of filing false income tax returns. Bajestani also agreed to the forfeiture of $600,000 in U.S. currency, representing the funds used to promote the specified unlawful activity.
Sentencing is set for 1:15 p.m., on January 15, 2014, in U.S. District Court in Knoxville, Tennessee, before the Honorable Leon Jordan, U.S. District Judge. Bajestani faces a maximum penalty of five years in prison for conspiracy to violate the IEEPA, and three years for each count of filing a false tax return. He also faces a maximum fine of $250,000 on each count.
In February 2013, a federal grand jury returned an 11-count superseding indictment against Bajestani, charging him with conspiracy, violations of the IEEPA and the Iranian Transactions Regulations, making a false statement to a federal agency, international money laundering, and filing false income tax returns.
Between February 2008 and May 2010, Bajestani agreed and conspired with an Iran-based coconspirator to engage in financial investments in Iran, in violation of the Iranian Transactions Regulations. These regulations impose economic sanctions against Iran, making it unlawful to make financial investments in Iran without authorization from the U.S. Office of Foreign Assets Control. Bajestani transferred $600,000 to Iran for investment purposes. He and his coconspirator used an informal value transfer system known as a “hawala” to transfer the funds to Iran. Bajestani also falsely reported on his income tax returns that he did not have an interest in a foreign bank account.
This investigation was conducted by Homeland Security Investigations, IRS-Criminal Investigations Division, Tennessee Valley Authority-Office of Inspector General, and Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey Theodore represented the United States.
Former Postal Supervisor Sentenced to 16 Months in Prison for Lying on A Federal Worker's Compensation DocumentRead the Press Release
STATESVILLE, N.C. – On Tuesday, September 3, 2013, U.S. District Judge Richard Voorhees sentenced a former supervisor with the U.S. Postal Service to serve 16 months in prison for submitting false information on a 2008 workman’s compensation benefits application, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Paul Bowman, Area Special Agent in Charge of the United States Postal Service, Office of Inspector General (USPS –OIG).
Joseph Catone, Jr., 58, of Boone, was convicted in March 2012 by a federal jury for lying on a federal document Catone submitted in 2008 which contained false information. Catone submitted the false information on an application in order to receive workman’s compensation benefits. According to evidence presented at trial and yesterday’s sentencing hearing, on or about July 21, 2006, Catone, while employed as a USPS supervisor at a post office in Boone, claimed that he had developed a stress-related condition as a result of excessive driving in the performance of his duties. The Department of Labor, Office of Workers’ Compensation Program (DOL OWCP) accepted Catone’s claim for temporary aggravation of sleep apnea, and Catone became eligible to receive compensation benefits because of the claimed disability.
According to court records, as a condition of his receipt of compensation benefits, Catone was required to periodically report, among other things, any employment, self-employment and volunteer work he had undertaken or income he had earned in the preceding fifteen months on the DOL OWCP Form EN1032 (EN1032). At trial, the government submitted evidence showing that in 2008 Catone completed, signed, and submitted an EN1032 that contained materially false responses. Specifically, the defendant answered in the negative questions about being employed elsewhere or having received any type of money or other compensation for volunteer work done while he was receiving compensation benefits. The government’s evidence included checks made payable to Catone that showed he had worked for and received a salary as a custodian for Angelo Nigro, doing business as Angelo’s Maintenance, from in or around August 2006 to August 2008. Witnesses testified that they regularly saw Catone vacuum, pick up trash, and perform other cleaning services at the Hayes Performing Arts Center in Blowing Rock, N.C. The government’s evidence also showed that the defendant received $132,214.31 (gross amount) in worker’s compensation from April 2007 to September 2009.
In handing down Catone’s sentence, Judge Voorhees stated that the defendant had “reaped financial benefits” from his dishonesty and that he imposed 16 months imprisonment because of “the need to deter others from similar conduct.” In addition to the prison term, Judge Voorhees also ordered Catone to serve three years under court supervision after he is released from prison, and to pay $106,411.83 as restitution.
The defendant was ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation of the case was handled by USPS-OIG. The prosecution for the government was handled by Assistant United States Attorney Kenneth M. Smith of the U.S. Attorney’s Office in Charlotte.
Former Motel Owner, Anil Patel, Guilty of Tax FraudRead the Press Release
ANIL PATEL, age 46, formerly a resident of Metairie, Louisiana, pled guilty in federal court today before U.S. District Court Judge Sarah S. Vance to tax fraud, announced U.S. Attorney Dana Boente.
According to court documents, on August 6, 2009, PATEL signed and filed a 2008 U.S. Individual Income Tax Return (Form 1040) with the Internal Revenue Service. That tax return did not report approximately $426,744 in income, which resulted in $111,378 in tax due and owing to the Internal Revenue Service.
PATEL was the former owner of the Trade Winds and La Village motels that were located on Airline Drive in Metairie, Louisiana. As part of his plea agreement, PATEL agreed to accept responsibility for failing to report $1,373,076 in total unreported income for the tax years 2006 - 2009. As a result, the tax due and owing to the IRS for those years is $393,048. PATEL also previously agreed to pay taxes due and owing to both the parish and state.
Sentencing is set for December 11, 2013 at 9:30 am. PATEL faces a maximum term of imprisonment of 3 years, as well as a fine of $250,000 and 1 year of supervised release following any term of imprisonment.
The case was investigated by the Special Agents of the Internal Revenue Service, detectives of the Jefferson Parish Sheriff’s Office and the prosecution is being handled by Assistant U.S. Attorney Jon Maestri.
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Former Assistant Director at Nicholasville Day Care Pleads Guilty to FraudRead the Press Release
LEXINGTON, KY - A former employee at a child day care center in Nicholasville, KY., admitted defrauding the company out of thousands of dollars.
On Tuesday, Pamela Sandlin, 55, pleaded guilty to a fraud charge in front of U.S. District Judge Karen Caldwell.
Sandlin admitted that, over the course of several years, she fraudulently took thousands of dollars while working as the Assistant Director at the Kids Connection Learning Center (KCLC), a company that annually receives more than $10,000 in federal program funding.
According to her plea agreement, Sandlin was responsible for collecting money from parents, making bank deposits, and documenting financial transactions for KCLC. Court documents also established that Sandlin altered company records to conceal the fraud.
Judge Caldwell has scheduled an evidentiary hearing on December 11 to determine how much money Sandlin took from KCLC. Sandlin will be sentenced during this hearing as well.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Perrye Turner, Special Agent in Charge, FBI, jointly announced the plea today.
The investigation was conducted by the FBI. Assistant U.S. Attorney Ken Taylor represents the U.S. Attorney’s office in this case.
Sandlin faces a maximum of 10 years in prison. However, the Court must consider the U.S. Sentencing Guidelines and the federal statues before imposing a sentence.
Financial Advisor Pleads Guilty to Investment Fraud SchemeRead the Press Release
RENO, Nev. – A former financial advisor with Bank of America has pleaded guilty to fraud and tax evasion charges for defrauding six persons of over $2 million during 2010 and 2011, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Gary H. Lane, 60, of Reno, pleaded guilty on Tuesday, Sept. 3, 2013, before Chief U.S. District Judge Robert C. Jones to 12 counts of mail fraud and five counts of attempt to evade or defeat tax. Lane is scheduled to be sentenced on Dec. 16, 2013, at 9:30 a.m., and faces up to 20 years in prison for each mail fraud count and up to five years in prison on each tax count, as well as fines of up to $250,000 per count.
According to the indictment, Lane was employed as a financial advisor by Bank of America Investment Services, which later merged with Merrill Lynch, until March 2011. During the course of Lane’s employment, he allegedly developed a scheme to entice persons to invest monies with him through the use of an E-Trade account rather than through normal bank procedures. Lane allegedly looked for investors who were elderly or lacked investing experience and had a desire for high returns and aversion to risk. Lane told the investors that their funds would be invested in U.S. Treasury Bonds which would pay better than six percent interest and would mature in two years. Lane corroborated the trades by creating false confirmations and distributing them to the victims by mail. After receiving the monies from the victims, Lane gave them to his spouse who mailed them to her E-Trade account. The monies were then withdrawn at Lane’s direction for his own use or to pay other investors. In actuality, Lane never purchased any U.S. Treasury Bonds with the victims’ monies. In fact, there were never any United States Treasury Bonds that existed with a rate of return of greater than six percent and a maturity period of less than two years.
Using this scheme, the indictment alleges that Lane defrauded approximately six victims of over $2 million between January 2010 and March 2011. Lane also allegedly filed false and fraudulent individual tax returns for the years 2006 through 2010, substantially understating his income and tax due and owing to the IRS.
The case was investigated by the FBI, IRS Criminal Investigation and the Nevada Secretary of State Securities Division, and is being prosecuted by Assistant U.S. Attorney Ronald C. Rachow.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.Felon Sentenced for Possessing A Nine-millimeter PistolRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a felon was sentenced for possessing a nine-millimeter, semi-automatic pistol. United States District Chief Judge Michael J. Davis sentenced Demetrius Demarco Spencer, age unknown, to 80 months in prison. He was indicted on November 14, 2012, and was convicted on January 16, 2013.
According to the indictment and the evidence presented at trial, Spencer possessed the gun on August 23, 2012. On that day, officers on routine patrol outside a Minneapolis nightclub saw Spencer standing in the parking lot. He reached into his pants and removed an “L-shaped” item covered with a white sock. He carried the item to a nearby car and placed it under the front seat. Officers later recovered the item—the nine-millimeter, semi-automatic pistol—from in the sock.
Because he is a felon, Spencer is prohibited under federal law from possessing a firearm at any time. His prior Hennepin County convictions include possession of a pistol by a prohibited person (2003), assault in the third degree (2007), and aggravated robbery (2007). Spencer was also convicted in Ramsey County for possession of a pistol by a prohibited person (2000).This case was the result of an investigation by the Minneapolis Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”). It was prosecuted by Assistant U.S. Attorney Richard Newberry.
The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than two dozen serious habitual criminals through Project Exile Minneapolis.Federal Jury Convicts Former CEO of Schneider Regional Medical Center of Tax FraudRead the Press Release
St. Thomas, USVI - After a two-day trial in district court on St. Thomas, a federal jury convicted Rodney E. Miller, Sr., 41, of causing, and aiding and assisting in the preparation of his personal Individual Income Tax Return, Form 1040 for calendar year 2006, United States Attorney Ronald W. Sharpe, Internal Revenue Service Special Agent in Charge Michael DePalma and Internal Revenue Service Head of the Special Enforcement Program Terry Travers, announced today.
According to the evidence presented at trial, in 2007, Miller willfully filed his income tax return for the tax year 2006, knowing that it was false and fraudulent as to a material matter. Specifically, Miller reported total income in the amount of $265,198.00, whereas he then and there knew and believed that his true total income was $510,947.00.
Miller faces a maximum penalty of three years in prison, a maximum fine of $250,000, and a special assessment of $100. Sentencing is scheduled for December 5, 2013.
U.S. Attorney Sharpe commended the efforts of the Internal Revenue Service, which investigated the case. The case was prosecuted by Assistant United States Attorney Kim L. Chisholm.
Federal Court Permanently Bars Texas Tax Preparer from Preparing Tax Returns for OthersRead the Press Release
The Justice Department announced today that a federal court has permanently barred Nina Thompson Price from preparing federal tax returns for others. The civil injunction order, to which Thompson Price consented, was signed Sept. 3, 2013, by Judge Nancy F. Atlas of the U.S. District Court for the Southern District of Texas.
In the consent order, Thompson Price agreed that she, individually, and doing business as N.M. & T. Tax Service, prepared over 1,500 federal tax returns for customers during tax years 2009, 2010 and 2011 claiming false and exaggerated Schedule C business deductions and education credits, as well as other deductions to understate her clients’ tax liabilities and overstate their tax refunds. The complaint alleges the United States suffered a total harm exceeding $100,000.
The Internal Revenue Service lists tax-preparer fraud as one of the “Dirty Dozen” tax scams. In the last decade the Justice Department has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available at www.justice.gov/tax/taxpress2013.htm.
Related Materials:
United States v. Nina Thompson Price, etc.
Complaint for Permanent Injunction and Other Relief
Stipulated Judgment of Permanent Injunction Against Nina Thompson Price also known as Nina Thompson d/b/a N.M. & T Tax ServiceEdison, N.J., Man Pleads Guilty to Production, Distribution of Child Sex Abuse ImagesRead the Press Release
TRENTON, N.J. - An Edison, N.J., man who once worked as a school crossing guard admitted today to taking compromising photographs of a naked child and distributing them and hundreds of other photographs of child sexual abuse over the Internet, U.S. Attorney Paul J. Fishman announced.
Kenneth Christensen, 44, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of production of child pornography and one count of distribution of child pornography. He has been detained since his arrest in February 2013.
According to documents filed in this case and statements made in court:During his guilty plea proceeding, Christensen – who worked as a school crossing guard in Metuchen, N.J., prior to his arrest – admitted that in 2012, he sent four individuals emails containing several hundred images of child pornography, including sadistic and masochistic conduct. Christensen acknowledged he distributed more than 600 such images.
Christensen also admitted that some of the files he distributed were photographs he took himself, including in his own bedroom, of a naked, prepubescent child who was bound in some of the images.
The production count carries a maximum potential penalty of 30 years in prison and a mandatory minimum sentence of 15 years in prison. The distribution count carries a maximum potential penalty of 20 years in prison and mandatory minimum sentence of five years in prison. Each count also carries a maximum $250,000 fine. Christensen is also required to register as a sex offender. Sentencing is scheduled for Dec. 9, 2013.
U.S. Attorney Fishman praised special agents with the FBI, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation.
The government is represented by Assistant U.S. Attorney David M. Eskew of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: Assistant Federal Public Defender K. Anthony Thomas, Newark
Christensen, Kenneth Information
Ebensberg Woman Sentenced to Prison for Conspiring to Defraud the IRSRead the Press Release
JOHNSTOWN, Pa. - A resident of Ebensburg, Pa., was sentenced in federal court to 12 months plus one day in prison and three years supervised release, on her conviction of conspiracy, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Roxanne Lamer, 46.
According to information presented to the court, from June 9, 2007, to April 15, 2008, Lamer conspired with others to defraud the United States by assisting a co-conspirator in concealing money from the Internal Revenue Service in order for the co-conspirator to avoid paying income tax.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation and the Ebensburg Borough Police Department for the investigation leading to the successful prosecution of Lamer.
Dominion Hospital Agrees to Settle Claim That It Failed to Provide Effective Communication Services to Deaf IndividualsRead the Press Release
ALEXANDRIA, Va. – The United States Attorney’s Office announced today a $55,000 settlement under the Americans with Disabilities Act (ADA) with Dominion Hospital, which is located in Falls Church, Virginia and is part of the HCA Virginia Health System, to ensure effective communication with individuals who are deaf or hard of hearing in the provision of medical services.
The United States Attorney’s investigation commenced with a complaint from the public and alleged that Dominion Hospital violated the ADA by failing to provide appropriate auxiliary aids and services, including sign language interpreter services, to deaf individuals who were family members of a patient being treated at Dominion Hospital during critical junctures, including: (1) the admission of the patient to the hospital; (2) during visiting hours when family members needed to discuss important and complex topics related to symptoms and treatment; and (3) at a family meeting. The complainants alleged that because of the hospital’s failure to provide sign language interpreter services, deaf individuals were denied the benefit of effective communication with hospital clinical staff and the opportunity to effectively participate in treatment decisions.
“This settlement exemplifies the United States Attorney’s Office’s commitment to protect the rights of those who are deaf or hard of hearing and to ensure that they are able to communicate with health care professionals, especially at critical moments in the medical care of family members,” said United States Attorney Neil MacBride.
The settlement agreement requires that Dominion Hospital pay $55,000 to the aggrieved individuals; provide training to hospital staff on the requirements of the ADA; and adopt specific policies and procedures to ensure that auxiliary aids and services are promptly provided to patients and companions who are deaf or hard of hearing.
This matter was handled by Assistant United States Attorney Steven Gordon, who coordinates the United States Attorney’s Office Civil Rights Initiative.
This case is a part of the Department of Justice’s Barrier-Free Health Care Initiative, which seeks to enforce the ADA’s prohibition of discrimination against disabled individuals by health care providers, including hospitals. Through the Barrier-Free Health Care Initiative, U.S. Attorneys' offices across the nation and the Department's Civil Rights Division target their enforcement efforts on a critical area for individuals with disabilities – access to medical services and facilities. The Barrier-Free Health Care Initiative is a multi-phase initiative that includes effective communication for people who are deaf or have hearing loss, physical access to medical care for people with mobility disabilities, and equal access to treatment for people who have HIV/AIDS.
The Department of Justice has a number of publications available to assist entities to comply with the ADA, including a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings, www.ada.gov/hospcombr.htm. For more information on the ADA and to access these publications, visit www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD. ADA complaints may be filed by email to [email protected].
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.Defendant Sentenced to 10 Years for Sex Crime Committed While in Treatment at LarnedRead the Press Release
WICHITA, KAN.-- A Kansas man who pleaded guilty to an Internet sex crime that took place while he was in the Kansas Sexual Predator Treatment Program at Larned State Hospital has been sentenced to 10 years in federal prison, U.S. Attorney Barry Grissom said today.
Mark D. Brull, 39, Larned State Hospital, pleaded guilty to one count of transferring obscene material to a child. In his plea, he admitted that while he resided at Larned State Hospital he became friends with co-defendant Ryan J. Dancosse, a resident of Wichita. Brull provided Dancosse with the passwords to Brull's social networking profiles including Facebook, Twitter, Flickr and Youtube, as well as his email account. With Brull's knowledge and agreement, Dancosse found and copied images of pornography and then uploaded the images to Brull's accounts for others to see and discuss.
In April 2011, Brull and Dancosse began communicating with a 14-year-old boy living in Massachusetts. In April and May 2011 Brull communicated with the boy via email and telephone. Brull guided the boy to his social networking profiles on the Internet, where he knew Dancosse had uploaded pornography. The boy was able to view the images on his computer and then discuss them with Brull. The images included depictions of nude males performing sexual acts.
Co-defendant Ryan J. Dancosse, 40, Wichita, Kan., pleaded guilty to one count of receiving child pornography. He is set for sentencing Oct. 2.
Grissom commended the Kansas Internet Crimes Against Children Task Force, the Wichita Police Department and the Sudbury, Mass., Police Department , U.S. Attorney Jason Hart and Assistant Attorney General Steve Karrer of Kansas Attorney General Derek Schmidt’s office.Danville Resident Ordered DenaturalizedRead the Press Release
SAN FRANCISCO – Jie Zhong’s naturalization was revoked and set aside by the United States District Court on Thursday, August 29, 2013, United States Attorney Melinda Haag announced. The court’s decision followed a trial before the Honorable Maria-Elena James, U.S. Magistrate Judge.
Evidence at trial showed that Zhong, 37, of Danville, Calif., falsely claimed to be a Falun Gong practitioner, and obtained asylum based on that false claim. He then applied for permanent residency; however, after waiting four years for that application to be approved, Zhong divorced his Chinese national wife and married a United States citizen for the purpose of obtaining an immigration benefit. Zhong’s first asylum-based application for permanent residency was approved, and he received naturalization based on that status. In late 2010, an officer with U.S. Citizenship and Immigration Services (USCIS) began investigating Zhong because she believed there were some indications of marriage fraud.
Judge James found in favor of the United States on all counts alleged in the complaint. Specifically, Judge James found that Zhong illegally procured citizenship because he engaged in marriage fraud and asylum fraud. Judge James further found that Zhong illegally procured citizenship because he provided false testimony under oath and thus lacked the good moral character requisite for naturalization, and because he procured naturalization by concealment of a material fact.
“The prosecution of this case demonstrates the commitment of this office to preventing immigration fraud,” said United States Attorney Melinda Haag. “Both naturalization and asylum are precious immigration benefits, and it is important to ensure that the path to each is secure.”
“When people enter the United States, immigrate and later become citizens, all done through fraud, their unlawful actions harm the integrity of our immigration system,” said San Francisco District Fraud Detection and National Security Chief Rebecca Galindo. “We at USCIS are proud of having discovered this double fraud, and of having developed the case for successful prosecution.”
Assistant U.S. Attorney Melanie L. Proctor prosecuted the case with the assistance of Paralegal Tiffani Chiu, and Legal Assistants Tina Louie and Kathy Terry. Trial Attorney Stacey Young, Office of Immigration Litigation, Civil Division, U.S. Department of Justice, served as co-counsel on the case. The prosecution is the result of a one-year investigation by USCIS and U.S. Immigration and Customs Enforcement, both part of Department of Homeland Security.
(Zhong order )
DOJ Awards Grants to Seattle Police, Skokomish Tribe for Programs to Protect Children from PredatorsRead the Press Release
U.S. Attorney Jenny A. Durkan announced today that significant federal funding has been awarded to the Seattle Police Department and the Skokomish Indian Tribe aimed at keeping youth safe from sex predators. The Seattle Police Department received nearly $430,000 to fund its internet Crimes Against Children (ICAC) Task Force. The Skokomish Tribe received more than $274,000 to fund sex offender registration and monitoring on tribal lands.
“There is no higher priority than the safety of our children both online and in our communities,” said U.S. Attorney Jenny A. Durkan. “These federal funds make a critical difference in both our urban and rural settings to the challenges faced by law enforcement. I congratulate the Skokomish Tribe and the Seattle Police Department for securing these grants through a competitive process.”
The grant award to the Seattle Police Department is from the Bureau of Justice Assistance (BJA) and will fund a commander, detective, training and equipment for the Internet Crimes Against Children Task Force. The funding is part of the PROTECT Act of 2008 that targets the use of the internet to prey on children. Some of the funding will be used for outreach to schools and parents about emerging technologies that could be misused and pose a risk to children.
The grant to the Skokomish Tribe is part of the Adam Walsh Child Protection and Safety Act of 2006. The funding will allow the tribe to hire a compliance officer to ensure sex offender registration and community notification. The grant will allow for greater community outreach and education and will allow the tribe to set up a kiosk at the Tribal Center where residents can get information about registered sex offenders in their community.
Chamberlain Man Charged with Possession with Intent to Distribute A Controlled Substance and Drug User in Possession of A FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Chamberlain, South Dakota, man has been indicted by a federal grand jury.
Rodney Hickey, age 48, was indicted on July 17, 2013, for Possession with Intent to Distribute a Controlled Substance and Drug User in Possession of Firearm. Hickey 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 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 $200 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and Hickey is presumed innocent until and unless proven guilty.
The Superseding Indictment alleges that on or about January 12, 2013, Hickey knowingly and intentionally possessed with intent to distribute hydrocodone, a Schedule III controlled substance. It also alleges that he knowingly possessed firearms while being a drug user.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Hickey was remanded to the custody of the U.S. Marshals Service until an electronic device can be in place and his warrant has been satisfied. A trial date has been set for October 22, 2013.Cambria County Man Pleads Guilty to Conspiracy and Firearms ViolationsRead the Press Release
Prosecution is Part of Project Safe Neighborhoods Initiative
JOHNSTOWN, Pa. - A resident of Ebensburg, Pa., was sentenced in federal court to 21 months in prison, three years supervised release and ordered to pay restitution in the amounts of $125,977 to the Internal Revenue Service and $390,544 to the Estate of Edward R. Szuch, on his conviction of conspiracy and violating federal firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on David Eugene Lamer, 47.
According to information presented to the court, from June 9, 2007, to Apr. 15, 2008, Lamer conspired with others to defraud the United States by concealing money from the Internal Revenue Service in an effort to avoid paying income taxes. Also, on Sept. 2, 2010, Lamer possessed a FIE, Model Standard .38 caliber pistol, and on Sept. 3, 2010, Lamer possessed a Remington, Model 760, .30-06 caliber rifle, a Marlin, Model 1894, .357 caliber rifle, and a Savage/Stevens (Western Field) Model 30, 16 gauge shotgun. On Jan. 8, 1986, Lamer was convicted in Cambria Co., Pa., of burglary, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms or ammunition.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
According to Mr. Hickton, this case was prosecuted as part of the Project Safe Neighborhoods initiative, a collaborative effort by federal, state, and local law enforcement, agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
Mr. Hickton commended the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation and the Ebensburg Borough Police Department for the investigation leading to the successful prosecution of Lamer.
Bullhead Woman Charged with Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bullhead, South Dakota, woman has been indicted by a federal grand jury.
Darla Yellow Earrings, age 49, was indicted on August 21, 2013, for Assaulting, Resisting and Impeding a Federal Officer. She 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 charge is 20 years' 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 stems from the alleged assault of a federal law enforcement officer in July of 2013, with the use of an automobile.
The charge is merely an accusation, and Yellow Earrings 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.
Yellow Earrings was released, subject to conditions. A trial date has been set for November 5, 2013.Brothers Get Long Federal Prison Sentences for Armed Bank Robbery, Assault on A Federal Officer and Related Firearms OffensesRead the Press Release
DALLAS — Brothers Johnny Charles Butler, 46, and James Robert Cleveland Butler, 44, of Quinlan, Texas, were sentenced this afternoon by U.S. District Judge Jorge A. Solis to 35 years and 25 years, respectively, in federal prison, following their guilty pleas earlier this year, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Johnny Butler pleaded guilty to two counts of armed bank robbery, one count of assaulting a federal officer and one count of using and carrying a firearm during and in relation to a crime of violence. James Butler pleaded guilty to two counts of armed bank robbery and one count of using, carrying and brandishing a firearm during and in relation to, and possession of a firearm in furtherance of a crime of violence. Both have been in custody since their arrest in August 2012.
According to documents filed in the case, both Johnny Butler and James Butler admitted committing the armed, takeover-style robberies of Bank of America, 100 West Highway 80, Forney, Texas, on November 25, 2011, and May 18, 2012.
Johnny Butler also admitted firing three shots from a .357 caliber pistol at FBI SWAT agents while they were attempting to execute a federal search warrant at his Quinlan residence on August 2, 2012.
The investigation was conducted by the Safe Street Violent Crime Task Force of the FBI. Assistant U.S. Attorney Keith Robinson was in charge of the prosecution.
Biloxi Man Sentenced on Federal Gun ChargesRead the Press Release
Gulfport, Miss - George Lewis Blackledge III, 34, of Biloxi, was sentenced in U.S. District Court today to 46 months in federal prison followed by three years of supervised release for possession of a firearm by a convicted felon, U.S. Attorney Gregory K. Davis announced. He was also ordered to pay a $3,000 fine.
In addition, seventeen firearms and several large capacity magazines recovered from Blackledge’s home were forfeited by the State of Mississippi.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Biloxi Police Department. It was prosecuted by Assistant United States Attorney Annette Williams.
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Attorney General Holder Announces Move to Extend <br /> Veterans Benefits to Same-Sex Married CouplesRead the Press Release
In the Obama administration’s latest step to ensure equal treatment for same-sex married couples following the Supreme Court’s decision to strike down a key section of the Defense of Marriage Act, U.S. Attorney General Eric Holder announced Wednesday that President Obama has directed the Executive Branch to take steps allowing for same-sex spouses of military veterans to collect federal benefits.The new policy means that the administration will no longer enforce statutory language governing the Department of Veterans Affairs (VA) and the Department of Defense (DoD) that restricts the awarding of spousal benefits to opposite-sex marriages only. The language, contained within Title 38 of the U.S. Code, has, until now, prevented the Executive Branch from providing spousal benefits to veterans—and in some instances active-duty service members and reservists—who are in same-sex marriages recognized under state law.
In a letter to Congressional leaders, Holder stated that the President’s decision was consistent with the Court’s decision in Windsor in June.
“Although the Supreme Court did not directly address the constitutionality of the Title 38 provisions in Windsor, the reasoning of the opinion strongly supports the conclusion that those provisions are unconstitutional under the Fifth Amendment,” Holder wrote.
The decision not to enforce Title 38 aligns with the Obama administration’s determination last year that two provisions of Title 38 that govern benefits for veterans and their families were unconstitutional as applied to legally married same-sex couples. At that time, the Attorney General informed Congress that the Department would no longer defend the Title 38 provisions, but that the Executive Branch would continue to enforce them. Today’s announcement makes clear that enforcement of the provision in Title 38 defining marriage as between a man and a woman will now cease.
The announcement comes after the House Bipartisan Legal Advisory Group (BLAG) recently decided to stop defending the Title 38 provisions in pending cases. In addition, last week, a federal district court in California held the Title 38 provisions unconstitutional on equal protection grounds. After consideration of these developments and a recommendation by the Attorney General, the President directed the Executive Branch to cease enforcement of the Title 38 provisions.
A copy of the letter from the Attorney General to Congressional leaders is attached.Related Materials:
Attorney General Holder's Letter to Congress
Armed Robber Exiled to over 13 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Davon Stephon Williams, age 23, of Washington, D.C, today to 162 months in prison followed by five years of supervised release for two counts of robbery and using a gun during a robbery. Judge Titus further ordered that Williams pay restitution of $242,248.53.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, on October 7, 2011, Williams and a co-conspirator, both armed with handguns, entered the cash office in a Walmart in Hyattsville, Maryland and demanded money from employees. The gunmen fled the store with $140,000 and sped away in a stolen van.
On January 9, 2012, Williams and his co-conspirators robbed the Down Town Locker Room in Forestville, Maryland of $1,248.53. Employees were outside the store, in the process of closing the front door and leaving to take store money to the bank. Williams and his co-conspirators pulled up in a mini-van. At least two co-conspirators aimed handguns at the employees. One of the co-conspirators held a handgun to the head of an employee who was an armed security guard and took her firearm. The conspirators fled after receiving the store money.
On January 16, 2012, a co-conspirator of Williams and co-defendant Jeffery Adams confronted an employee of Garda Cash Logistics who was carrying a bag containing $88,659.03 in cash and $13,337.90 in checks from the Bowie Walmart store to a Garda armored transport vehicle parked in front of the store. The robber pointed his handgun at the Garda employee and demanded the money. After the Garda employee complied, the robber ran with the money bag into a stolen van occupied by Williams, Adams and others. The van sped away and was located shortly thereafter. Williams’ cell phone was found inside the van.
In addition to actively participating in these robberies, Williams helped plan and prepare these crimes.
Jeffery Louis Adams, age 34, of Washington, D.C., previously pleaded guilty to his participation in the January 16 robbery and to two other robberies: a bank in Lexington Park, Maryland, stealing $109,750; and a credit union in Clinton, Maryland, stealing $100,427. Adams is scheduled to be sentenced on December 16, 2013.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney William D. Moomau and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who prosecuted the case.
Angelina County Man Sentenced for Robbing Post OfficeRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 30-year-old Lufkin, Texas man has been sentenced to federal prison for robbing a post office in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Keith DeWayne Bailey pleaded guilty on June 19, 2013, to post office robbery and was sentenced to 33 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, on Oct. 1, 2012, Bailey entered the United States Post Office in Woodville, Texas and handed a note to a postal employee indicating he had a concealed weapon, he was robbing the post office, and demanding the money in the register. The postal employee went to the back of the post office and gave the note to her supervisor. When the postal employee returned to the front of the post office, Bailey had already left the building. The postal employee called 911 and gave a detailed description of the suspect. Less than 10 minutes later, a law enforcement officer responding to the scene observed a suspect matching the description a few blocks from the post office. Bailey was arrested without incident and admitted to attempting to rob the post office.A federal grand jury returned an indictment on Oct. 3, 2012 charging Bailey with federal violations.
This case was investigated by the U.S. Postal Inspection Service and the Woodville Police Department and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
Ammon Man Sentenced for Selling Meth in BlackfootRead the Press Release
POCATELLO – Jesus Manuel Avila, 46, of Ammon, Idaho, was sentenced yesterday in United States District Court to 12 months in prison, followed by 12 months of home detention with electronic monitoring, for distributing five grams or more of actual methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Avila to serve five years of supervised release and pay a $1,000 fine. He pleaded guilty to the charge on March 19, 2013.
According to the plea agreement, on two occasions, including August 1, 2011, Avila agreed to sell methamphetamine to another individual. Avila subsequently met with the individual in Blackfoot, Idaho, where he sold an ounce of methamphetamine containing five grams or more of methamphetamine.
The case was investigated by the Idaho State Police.
Ambulance Company Owners Sentenced to Prison for Health Care Fraud SchemeRead the Press Release
PHILADELPHIA - Aleksandr N. Zagorodny, 40, of Southampton, PA, was sentenced today to 78 months in prison for a healthcare fraud scheme involving MedEx Ambulance, Inc., located in Feasterville, PA. Zagorodny was the President and a founder of MedEx Ambulance. His 36 year-old brother, Sergey Zagorodny, from Philadelphia, PA, the former Vice-president and co-owner of the company, was sentenced to 60 months in prison for his involvement in the health care fraud scheme. MedEx Ambulance was ordered to be dissolved after it has been excluded from participation in Medicare and its assets are transferred to the government to satisfy restitution and forfeiture obligations. Each defendant had pleaded guilty to all counts in a 41-count indictment including health care fraud, false statements in connection with health care matters, wire fraud, and conspiracy to commit health care fraud and wire fraud.
Defendant MedEx Ambulance and its owners transported patients who were able to walk and could travel safely by means other than ambulance and who were not eligible for ambulance transportation under Medicare requirements. Falsified reports made it appear that the patients needed to be transported by ambulance when the defendants and their employees knew otherwise. The defendants billed for the ambulance services as if those services were medically necessary. The Medicare program was bilked out of more than $3.4 million through this fraud.
U.S. District Court Judge Berle M. Schiller also ordered restitution to Medicare in the amount of $3,418,358.81, a special assessment of $4,100 for each individual defendant and $16,400 for the corporation, and a 3-year term of supervised release for the individuals and 5 years of probation for the corporation. The Court ordered the forfeiture of four ambulances that had been purchased for over $200,000, as well as forfeiture of bank accounts worth over $40,000, and entered a money judgment against the defendants for $3,418,358.81. In connection with the sentencing, the company agreed to sell its base of operations and to provide the proceeds of that sale to the government in partial satisfaction of the defendants’ restitution obligations. The defendants and their wives also pledged to sell their family homes, as well as additional property, and to provide the proceeds of the sale of those assets to partially satisfy the defendants’ restitution obligations.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Matthew J.D. Hogan.
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