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31 October 2013
Mission Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Assault by Striking, Beating and Wounding and Simple Assault was sentenced on October 30, 2013, by U.S. Magistrate Judge Mark A. Moreno.
Desersa was remanded to the custody of the U.S. Marshals Service.
Hubert Desersa, age 23, was sentenced to 18 months in custody and $35 to the Federal Crime Victims Fund.
Desersa was indicted by a federal grand jury on July 17, 2013, and pled guilty to the charge on October 23, 2013.
The conviction stems from an incident that took place on May 31, 2013, when Desersa slapped and hit the victim, knocking her to the floor and tearing her clothes off during the assault. Desersa then followed the victim into another room, where the two struggled over a knife, resulting in the victim being cut on the web of her hand.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
Mission Man Sentenced for Aggravated Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Aggravated Sexual Abuse was sentenced on October 29, 2013, by U.S. District Judge Roberto A. Lange.
Poorman was remanded to the custody of the U.S. Marshals Service.
Zachary Poorman, age 26, was sentenced to 150 months in custody, 5 years of supervised release, was ordered to pay $100 to the Federal Crime Victims Fund, and must register as a sex offender.
Poorman was indicted by a federal grand jury on March 13, 2013, and pled guilty to on June 13, 2013.
The conviction stems from an incident that took place on October 29, 2012, when Poorman, the victim and others were drinking alcohol together at a residence in Mission. At some point during the night, Poorman took the victim to a nearby shed where he forcibly sexually abused the victim. The victim was struck and held down during the assault. The victim suffered injuries as a result of the assault.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Mexican National Pleads Guilty to $9 Million Drug-trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mexican national pleaded guilty in federal court today to his role in a $9 million drug-trafficking conspiracy that distributed hundreds of kilograms of methamphetamine in the Kansas City area.
Porfirio Almeida-Perez, also known as “Cadena,” “Flan,” “Guarache” and “Pilo,” 35, a citizen of Mexico residing in Kansas City, Mo., pleaded guilty before U.S. District Judge Brian C. Wimes to the charge contained in a March 13, 2012, federal indictment.
Almeida-Perez admitted that he participated in a conspiracy to distribute methamphetamine from Jan. 1, 2007, to March 13, 2012. Under the terms of today’s plea agreement, Almeida-Perez is jointly and severally liable with 31 co-defendants to pay a money judgment of $9 million. That amount represents the proceeds from the distribution of 272 kilograms of methamphetamine during the conspiracy, based on a conservative street price of $16,000 per pound.
According to today’s plea agreement, on Oct. 28, 2011, a co-conspirator was delivering a shipment of methamphetamine from California to Almeida-Perez, who was heavily involved with distributing methamphetamine in the Kansas City area. The co-conspirator was arrested by Missouri State Highway Patrol troopers, who stopped the co-conspirator on I-29 and searched his vehicle. Upon searching the vehicle’s engine compartment the trooper discovered a false radiator and recovered eight packages of methamphetamine, weighing approximately nine pounds.
Under federal statutes, Almeida-Perez is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $10 million. A sentencing hearing is scheduled on Feb. 28, 2014.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Jackson County Drug Task Force, the Kansas City, Mo., Police Department, the Missouri State Highway Patrol, the Kansas State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Marion Man Pleads Guilty to Multiple Fraud, Money Laundering, and Tax Evasion CountsRead the Press Release
A former investment broker who made false statements to banks, defrauded investors, and evaded taxes pled guilty today to eight felony offenses in federal court in Cedar Rapids.
Randy Beltramea, age 49, from Marion, Iowa, was convicted of two counts of wire fraud, two counts of making false statements to financial institutions, two counts of money laundering, one count of aggravated identity theft, and one count of tax evasion.
In a plea agreement, Beltramea admitted that in 2009 and 2010, he devised a scheme to defraud former investors by soliciting money from them under false pretenses. In particular, Beltramea admitted telling former investors that their money was to be invested in Subway sandwich shop restaurants, when he actually intended to, and did, use their money in his own real estate investment and for his own personal expenses. In connection with soliciting money from one of the investors, Belramea provided the investor with a promissory note on which he forged the signature of another person who was involved in buying a Subway restaurant. In fact, that other person did not give Beltramea permission to use or sign his name to the promissory note. Beltramea also admitted that he moved some of the proceeds from the fraud into a bank account under his mother’s name for the purpose of trying to hide the source of the money and in an effort to evade taxes. The IRS had previously imposed a tax lien in excess of $320,000 against Beltramea because he had not filed tax returns or paid taxes since 2001. Finally, Belramea admitted that he obtained loans and loan extensions from two banks by providing them with false financial statements and with tax returns he falsely represented had been filed with the IRS.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Beltramea remains free on bond previously set pending sentencing.
Beltramea faces a mandatory minimum sentence of two years’ imprisonment and a possible maximum sentence of 137 years’ imprisonment, a $3,750,000 fine, $800 in special assessments, and 28 years of supervised release following any imprisonment.The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Internal Revenue Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-20-LRR.
Luzerne County Man Pleads Guilty to Jewelry Store Robberies, Bank Robbery, and FraudRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that Kirk Robinson, age 45, of Wilkes-Barre, Pennsylvania, has pleaded guilty to being involved in two Luzerne County jewelry store robberies, a bank robbery, as well as an insurance fraud scheme.
According to United States Attorney Peter J. Smith, Robinson pleaded guilty in federal court on October 24, 2013, before Senior United States District Judge James M. Munley. Robinson pleaded guilty to conspiring with others to carry firearms in relation to the robbery of Steve Hydock Diamonds Jewelry store, Kingston, Pennsylvania, on May 5, 2008 and Dunay Jewelry store, Wilkes-Barre, Pennsylvania, on May 14, 2008. He also pleaded guilty to the armed bank robbery of the M&T Bank, Hanover Township, occurring on October 30, 2010. At his guilty plea, Robinson admitted that he planned and acted as a getaway driver in those three robberies. Additionally, Robinson pleaded guilty to using the mail in a scheme to defraud an insurance company of $43,000. Robinson admitted that the scheme involved staging a robbery with a confederate, and filing a police report wherein he falsely claimed an armed robber stole jewelry from him.
The case was investigated by the Federal Bureau of Investigation; the Kingston Police Department; the Hanover Township Police; and the Wilkes-Barre Police Department. Prosecution has been assigned to Assistant United States Attorney John C. Gurganus.The sentence following this guilty plea will be imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 85 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Lexington Attorney Pleads Guilty to Mail Fraud, Wire Fraud, Distribution of Controlled Substances, Obstruction of Justice and Tax FraudRead the Press Release
LEXINGTON, KY -
A Lexington attorney admitted his involvement in a drug ring and several fraud schemes, where he illegally diverted in excess of a million dollars.
On Wednesday, Seth Johnston, 34, pleaded guilty to two counts of mail fraud and one count each of wire fraud, conspiracy to obstruct of justice, conspiracy to distribute a controlled substance analogue (synthetic marijuana) and tax fraud.
Johnston admitted he was responsible for collecting money for plaintiffs in a civil lawsuit, as part of a settlement regarding the diet drug Fen-Phen. However, Johnston diverted $14,963.15 of the collected money for his own personal use. Angela Ford, the Lexington attorney representing the plaintiffs in the lawsuit, had hired the law firm where Johnston worked to garnish assets of the defendants in that lawsuit, William Gallion, Shirley Cunningham and Melbourne Mills, Jr. This fraud scheme started in 2008 and continued through 2010.
Court records state that Ford had hired Johnston to establish multiple corporate bank accounts to hold $3.5 million of Ford’s money. Johnston acknowledged that he diverted a significant amount of Ford’s money for his own personal gain, some of which he used to purchase property for other clients. To cover up this scheme, Johnston provided Ford with fraudulent documentation regarding the status of her money.
Johnston also admitted that in 2010 he perpetrated a scheme to defraud the residual heirs of an estate for which he provided representation. According to court records, he hid assets and diverted money for his own personal use.
In addition, Johnston admitted that, as part of a drug conspiracy, he provided approximately $100,000 to others, to purchase synthetic marijuana to be distributed in Lexington.
Johnston acknowledged that in 2013, he instructed witnesses, who had been subpoenaed to testify at the grand jury regarding the fraud case, to destroy documents so that certain evidence would not be available. Johnston further admitted that, in 2011, he under reported his taxable income to the IRS. Specifically, Johnston reported an income of $26,372 when, in fact, his income was $208,950.
The U.S. attorney’s office for the Eastern District of Kentucky; Robert L. Corso, Special Agent in Charge, DEA; Perrye Turner, Special Agent in Charge, FBI; and Christopher Henry, Special Agent in Charge, IRS, jointly announced the plea today.
The investigation was conducted by the DEA, FBI and IRS. Assistant U.S. Attorneys Erin Roth, Robert Duncan Jr. and Elisabeth Sigler prosecuted the case on behalf of the U.S. attorney’s office.
Johnston is scheduled to be sentenced on March 3, 2014. The tax fraud charge carries a maximum of five years in prison. The remaining offenses each carry a maximum penalty of 20 years imprisonment. However, any sentence imposed by the Court would come after consideration of the U.S. Sentencing Guidelines and the federal statutes.
Leland Tax Return Preparer Guilty of False ClaimsRead the Press Release
Felicia C. Adams, United States Attorney for the Northern District of Mississippi, and Gabriel “Gabe” Grchan, Special Agent in Charge of the Internal Revenue Service Criminal Investigation, New Orleans Field Office, announce that:
Felicia R. Fults, 31, of Leland, Mississippi, pled guilty on October 24 to filing false claims with the federal government. Fults will be sentenced in approximately 90 days. Fults faces up to nine years imprisonment, up to a $250,000 fine and up to one year supervised release.
The investigation by Internal Revenue Service Criminal Investigations revealed that Fults submitted tax returns to the IRS fraudulently claiming inflated or fabricated Schedule C income for her clients and by claiming her clients were Statutory Employees, resulting in self-employment taxes not being calculated, thus enabling her clients to maximize their tax refund. The false returns resulted in claimed refunds of approximately $2,567,988.
Return Preparer fraud is a priority for IRS Criminal Investigation, and we have committed many resources to investigating and prosecuting cases just like this one,” said Gabriel Grchan, Special Agent in Charge, IRS-CI, New Orleans Field Office. “It is my hope that the guilty plea entered today by Felicia Fults further assures the taxpaying citizens of our country that IRS – CI is serious about protecting the United States Treasury.”
This case was investigated by Special Agents of the Internal Revenue Service, Criminal Investigations, and was prosecuted by the Office of the United States Attorney for the Northern District of Mississippi.
Leader of "Revolution Muslim" Websites Pleads Guilty to Using Internet to Threaten Jewish OrganizationsRead the Press Release
ALEXANDRIA, Va. – Yousef Mohamid Al-Khattab (a.k.a. Joseph Cohen), 45, of Atlantic City, New Jersey, pleaded guilty yesterday to using his position as a leader of the “Revolution Muslim” websites to use the Internet to place others in fear of serious bodily injury.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Raymond W. Kelly, New York City Police Commissioner, made the announcement after the plea was accepted by United States District Judge Liam O’Grady.
Al-Khattab faces a maximum penalty of five years in prison when he is sentenced on February 7, 2014.
According to a statement of facts filed with his plea agreement, Al-Khattab and his colleague, Jesse Curtis Morton (a.k.a. Younus Abdullah Muhammad), founded the Revolution Muslim organization in December 2007 to operate Internet platforms and websites to encourage Muslims to support Usama bin Laden, Anwar Al Awlaki, al Qaida, the Taliban, and others engaged in or espousing violent jihad.
On January 8, 2009, Al-Khattab posted to the Revolution Muslim website a video encouraging viewers upset about the conflict in Gaza to seek out the leaders of Jewish Federation chapters in the U.S. and “deal with them directly at their homes.” Al-Khattab gave the names and addresses of synagogues in New York and another Jewish organization in Brooklyn.
On January 20, 2009, Al-Khattab posted a video and photo of the headquarters of the Jewish organization in Brooklyn, with a map and directions to specific facilities. Al-Khattab also posted a link to “The Anarchist Cookbook,” which is a manual for (among other things) constructing and using explosive devices.
On January 23, 2009, Al-Khattab posted to the Revolution Muslim website a video accusing the Jewish organization of funding terrorism, and urging viewers to find the leaders of Jewish organizations and “hold them responsible.”
As acknowledged in the statement of facts, Al-Khattab knew that some viewers of the Revolution Muslim websites were inclined to violence, and by making the posts involving Jewish organizations in 2009, Al-Khattab was trying to frighten Jews and Jewish organizations.
On June 22, 2012, Revolution Muslim founder Jesse Morton was sentenced to 138 months in prison. On February 24, 2011, Revolution Muslim administrator Zachary Chesser was sentenced to 25 years in prison.
This investigation is being conducted by the FBI’s Washington Field Office and the New York City Police Department's Intelligence Bureau. Assistant United States Attorneys Gordon D. Kromberg and Special Assistant United States Attorney Allison Ickovic of the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney John T. Gibbs of the Counterterrorism Section in the National Security Division are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Las Cruces Man Pleads Guilty to Robbing First Light Federal Credit Union in Las Cruces in July 2013Read the Press Release
ALBUQUERQUE – Dominic Tyrel Holland, 27, of Las Cruces, N.M., pleaded guilty this morning to a bank robbery charge and admitted robbing the First Light Federal Credit Union in Las Cruces N.M., on July 31, 2013. Holland entered his guilty plea without the benefit of a plea agreement.
Holland was arrested on July 31, 2013, based on a criminal complaint charging him with robbing the First Light Federal Credit Union in Las Cruces on that day. He subsequently was indicted on that same charge. According to the criminal complaint, Holland approached a bank teller and presented a note demanding money. After obtaining money from the bank teller, Holland left the bank on foot. After witnesses at the bank identified Holland as the bank robber, officers of the Las Cruces Police Department located Holland at an apartment complex and placed him under arrest.
Holland has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Holland faces a maximum penalty of 20 years in prison and a term of supervised release to be determined by the court.
The case is being prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office and was investigated by the Las Cruces office of the FBI and the Las Cruces Police Department.
Kinston Farmer Sentenced for Fraud on Commodity Credit CorporationRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever, III, has sentenced WILLIAM L. WHALEY, JR., 50, of Kinston, North Carolinato 12 months and 1 day of imprisonment followed by 3 years supervised release. The Court did not impose a fine in recognition of the $50,000 monetary penalty previously paid by the defendant.
On February 27, 2013, a Criminal Information was filed charging WHALEY with making false statements in connection with a commodity credit corporation loan, in violation of Title, 15, United States Code, Section 714m. On April 9, 2013, he pled guilty to the charge.
According to the investigation, WHALEY, the controlling partner of Whaley Partners, a large farming operation, entered into a commodity loan agreement with the United States Department of Agriculture for $272,986.56 using bushels of soybeans as collateral. During the loan process, an agency employee went to WHALEY’s farm to verify the quantity and quality of the beans. In preparation for the visit, WHALEY had a farm hand suspend a bucket of soybeans just below the opening at the top of the grain bin to give the illusion that the grain bin was in fact filled with 54,000 plus bushels of soybeans. In reality, the bin was empty and the collateral never existed. WHALEY then submitted false lien waivers in connection with his loan application. The Farm Service Agency discovered the fraud in May 2009.
The criminal investigation of this case was conducted by United States Department of Agriculture – Office of the Inspector General – Investigations. The Farm Service Agency provided valuable assistance in the investigation. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.Kimball Man Pleads Guilty to Assaulting, Resisting and Impeding A Federal Officer and Lacey Act ViolationRead the Press Release
United States Attorney Brendan V. Johnson announced that James Steckley, age 44, of Kimball, South Dakota, appeared before U.S. District Judge Karen E. Schreier on October 29, 2013, and pled guilty to Count IV of the Indictment that charged him with a Lacey Act violation and an Information that charged him with Assaulting, Resisting and Impeding a Federal Officer.
The maximum penalty upon conviction on both counts is 1 year of imprisonment and/or a $100,000 fine, 1 year of supervised release, an additional year of supervised release upon revocation, and a $50 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The assault charge stems from an incident wherein Steckley, on September 6, 2012, interfered with a Special Agent with the U.S. Fish and Wildlife Service while that agent was investigating the Lacey Act violations. The investigation ultimately revealed that between November 27, 2011, and December 5, 2011, in Brule County, South Dakota, Steckley, then part owner of Steckley’s Wild Dakota Outfitters, a commercial hunting operation, hosted paying clients to hunt deer without appropriate licenses.
The investigation was conducted by the U.S. Fish and Wildlife Service and the South Dakota Department of Game, Fish and Parks. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Steckley was released on bond pending sentencing which has been set for January 17, 2014.
Justice Department Seeks to Shut Down South Texas Tax PreparerRead the Press Release
McAllen Area Man Allegedly Prepares Tax Returns Claiming False Deductions and Credits
The United States has filed a lawsuit asking a federal district court in McAllen, Texas, to permanently bar Hector Rangel Jr. from preparing federal tax returns for others, the Justice Department announced today.
According to the complaint, Rangel, who resides near and does business in McAllen, has been preparing federal tax returns for customers since 2003 that contain false, improper, or inflated itemized deductions or business-expense deductions. The complaint also alleges that Rangel prepares returns that claim improper tax credits such as the earned income tax credit (EITC), fails to create or retain accurate “due diligence” documentation for EITC claims, and does not sign and provide his identification number on all returns he prepares. Most of Rangel’s customers allegedly reside in southern Texas.
In one instance described in the complaint, Rangel allegedly claimed farming-expense deductions on three tax returns for a married couple who did not own a farming business and never provided any farm-expense documentation to Rangel. The lawsuit also alleges that Rangel claimed improper tax credits on his own income tax returns for 2008 through 2010 and that the Internal Revenue Service (IRS) assessed accuracy-related penalties against him with respect to those returns.
The complaint further alleges that 96 percent of the returns examined by the IRS, which Rangel had prepared from the 2003 through 2012 tax-filing seasons, were found to have understated the tax liabilities of Rangel’s customers. According to the complaint, the IRS estimates that the total tax harm from Rangel’s unlawful tax-preparation activities during that period could be over $15 million.
Return preparer fraud is one of the Internal Revenue Service’s Dirty Dozen Tax Scams for 2013 which can be viewed at www.irs.gov/uac/Newsroom/IRS-Releases-the-Dirty-Dozen-Tax-Scams-for-2013 . The Internal Revenue Service has tips for choosing a tax preparer: www.irs.gov/Tax-Professionals/Choosing-a-Tax-Professional . In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website at www.justice.gov/tax/taxpress2013.htm.
Related Materials:
United States v. Hector Rangel Jr., etc.
Complaint for Permanent InjunctionJury Convicts Brevard County Man on Child Pornography ChargesRead the Press Release
Orlando, Florida – Acting United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Randolph St. Gourdin (38, Palm Bay) guilty of receiving child pornography. St. Gourdin faces a minimum penalty of five years, up to a maximum of twenty years in federal prison. His sentencing hearing is scheduled for January 17, 2014.
According to testimony and evidence presented at trial, St. Gourdin downloaded videos of child pornography using a file sharing program. After viewing the videos, he deleted them using a software program to wipe his computer clean. However, computer forensic agents from a U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) task force located the videos previously deleted from his computer. The jury heard St. Gourdin’s recorded confession stating that he searched for the child pornography because of his sexual curiosity for those types of videos.
This case was investigated by ICE-HSI. It is being prosecuted by Assistant United States Attorney Tanya Davis Wilson.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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.
Jason Anthony Carter Convicted in Connection with Meth Lab ExplosionRead the Press Release
GREENEVILLE, Tenn. – On Oct. 31, 2013, Jason Anthony Carter, 35, of Bristol, Tenn., was convicted of conspiring to manufacture methamphetamine, possession of equipment, chemicals, products, and materials used for manufacturing or attempting to manufacture methamphetamine, and creating a substantial risk of harm to human life while manufacturing or attempting to manufacture methamphetamine, following a two-day jury trial in U.S. District Court in Greeneville.
Sentencing is set for 1:30 p.m., on Mar. 3, 2014, in U.S. District Court in Greeneville. Carter faces a possible sentence of up to 40 years in federal prison and up to $1,500,000 in fines.
A federal grand jury indicted Carter, along with Amanda Kiser Steadman, 32, and James Hulon Steadman, 41, both of Bristol Tenn., on these charges in November 2012. According to evidence presented at trial, Carter and the Steadmans planned to manufacture methamphetamine at an apartment building in Bristol in August 2012. They purchased the supplies needed to manufacture methamphetamine at various businesses in Bristol before returning to the apartment to begin cooking methamphetamine utilizing the “one-pot” or “shake and bake” method. Once at the apartment, Carter assisted with the preparation of the materials to manufacture methamphetamine. Evidence further showed that while the methamphetamine was cooking, several explosions occurred, resulting in a fire in the apartment and serious injuries to Amanda Steadman.
Both Amanda Kiser Steadman and James Hulon Steadman were previously convicted and are currently awaiting sentencing.
This investigation was a joint effort of the Bristol Tennessee Police Department, Tennessee Methamphetamine Task Force, Drug Enforcement Administration, Second Judicial District Drug Task Force, and Sullivan County Sheriff’s Office. Assistant U.S. Attorney Suzanne Kerney-Quillen represents the United States.
Indian River Man Sentenced on Internet Transportation of Child PornographyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Daniel V. Garcia, Chief, Phoenix Police Department, and Michelle Morris, Chief, Sebastian Police Department, announce that U.S. District Judge Donald L. Graham sentenced Alfred E. Daking Jr., 70, of Sebastian, Florida, to 180 months in prison, followed by a lifetime period of supervised release and a $100 special assessment.
According to court documents, Daking sent over 800 emails to a 13 year old boy from Phoenix, Arizona. Daking also attached child and adult pornography to some of the emails. During the Phoenix Police Department’s investigation, it was confirmed that the emails were sent from Daking’s residence located in Sebastian, Florida.
Upon execution of a federal search warrant at Daking’s residence, agents from HSI, the Sebastian Police Department and the Phoenix Police Department located a desk top computer. An on-sight forensic preview scan of the computer found approximately 20 images of child pornography. Daking admitted that the computer was his and that he exclusively used the computer. He identified his email address and admitted sending sexually suggestive emails to the minor in Phoenix, Arizona.
Mr. Ferrer commended the investigative efforts of ICE-HSI, the Phoenix Police Department and the Sebastian Police Department. The case is being prosecuted by Assistant U.S. Attorney Diana M. Acosta.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Indian River Man Sentenced on Internet Transportation of Child PornographyRead the Press Release
92 defendants have been charged to date in Operation Sledgehammer I-VI
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Jeff Atwater, Florida Chief Financial Officer, Florida Department of Financial Services, and Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, announce that defendants Maykel Marquez, 32, of Jupiter, and Noelia Marichal, 52, of West Palm Beach, were sentenced today by U.S. District Judge Kenneth A. Marra for their participation in an automobile insurance fraud scheme involving staged automobile accidents. Maykel Marquez was sentenced to 58 months of incarceration, followed by 2 years of supervised release and Noelia Marichal was sentenced to 48 months of incarceration, followed by 2 years of supervised release. Marquez was ordered to pay $1,177,775.04 in restitution and Marichal was ordered to pay $1,359,208.73 in restitution.
Each of the defendants previously pled guilty to one count of conspiring to commit mail fraud, in violation of Title 18, United States Code, Section 1341, all in violation of Title 18, United States Code, Section 1349; multiple counts of mail fraud, in violation of Title 18, United States Code, Sections 1341 and 2; and one count of conspiring to commit money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1), all in violation of Title 18, United States Code, Section 1956(h). Maykel Marquez also pled guilty to multiple counts of money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1)(A)(i), 1956(a)(1)(B)(i), 1956(a)(1)(B)(ii), and 2.
According to court documents, between approximately October 2006 and December 2012, the conspiracy members staged automobile accidents by recruiting individuals, including these defendants, to participate in the accidents. The participants were referred to as “Perro” and “Perra” or “Macho” and “Hembra.” Thereafter, the clinic owners caused the submission of false insurance claims through chiropractic clinics that were controlled by members of the conspiracy. To execute the scheme, the true owners of the chiropractic clinics recruited individuals, who had the medical or chiropractic licenses required by the state to open a clinic, to act as “nominee owners” of the clinics. The co-conspirators also hired complicit chiropractors and therapists who prescribed and billed for unnecessary treatments and/or for services that had not been rendered. Thereafter, complicit clinic employees prepared and submitted claims to the automobile insurance companies for payment for these unnecessary or non-rendered services. Twenty-one clinics participated in this scheme.
Furthermore, according to court records, once fraud proceeds were received from the insurance companies, the co-conspirators also recruited individuals including these defendants, to help the clinics launder the insurance proceeds. Sentencing documents showed that Marquez cashed checks worth $568,517.23 and Marichal cashed checks worth $101,344.26 in laundered proceeds.
Starting with Operation Sledgehammer I in June 2011 and including the defendants charged in Operation Sledgehammer VI, 92 defendants have been charged for their participation in this automobile insurance fraud scheme. Of those 92 defendants, 56 have been charged federally by the U.S. Attorney's Office, resulting in court-ordered restitution of more than $5 million to the defrauded insurance companies. Thirty-six defendants have been charged by the Palm Beach County State Attorney's Office.
Mr. Ferrer commended the efforts of the FBI, IRS-CI, the Florida Department of Insurance Fraud, the Palm Beach County State Attorney's Office, and the Greater Palm Beach County Health Care Fraud Task Force for their outstanding work in this case. Mr. Ferrer also recognized the National Insurance Crime Bureau (NICB) for its collaboration and assistance in this investigation. The federal cases are being prosecuted by Assistant U.S. Attorney A. Marie Villafaña and the state cases are being prosecuted by the Palm Beach County State Attorney's Office.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Huntsville Man Sentenced for Tax EvasionRead the Press Release
HUNTSVILLE -- A federal judge today sentenced a Huntsville man to five years probation, including eight months home detention, for tax evasion and ordered him to pay $3.7 million in restitution to the government, announced U.S. Attorney Joyce White Vance and Internal Revenue Service Criminal Investigation Special Agent In Charge Veronica Hyman-Pillot.
U.S. District Judge Abdul K. Kallon sentenced PAUL BRACY, 71, on one count of tax evasion. The U.S. Attorney's Office charged Bracy in July. According to court documents, the IRS was about to determine Bracy was personally responsible for $60,995 in unpaid taxes associated with businesses he owned, when Bracy conveyed four pieces of real property, via “sham transactions,” to others in order to avoid IRS seizure of the properties to satisfy the outstanding tax amount. As part of his plea agreement, Bracy agreed to pay the $3,747,650 in restitution to the government.
“Most citizens diligently pay their taxes,” said Vance. “The willful failure of others to do so is patently unfair and criminal. We will aggressively seek to investigate and prosecute those individuals.”
“Individuals who earn income should accurately report their income to the IRS,” stated Veronica F. Hyman-Pillot, Special Agent in Charge with IRS Criminal Investigation. “The sentence today, should reassure Americans, that those individuals who willfully and intentionally violate their known legal duty of filing and paying their fair share of taxes will be prosecuted."
The IRS-CI investigated the case, which was prosecuted by the U.S. Attorney's Office for the Northern District of Alabama.
Harrisburg Man Sentenced to 11 Years for Drug TraffickingRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced that Marlon T. Holmes, a/k/a “Peanut,” age 37, of Harrisburg, Pennsylvania, was sentenced to 11 years in federal prison for drug trafficking.
According to United States Attorney Peter J. Smith, Holmes was charged with cocaine trafficking in Harrisburg from 2007 through October 2008. A grand jury indicted Holmes in 2008, but he remained a fugitive for approximately three years before he was arrested by authorities in November 2011. In June 2012, Holmes entered a guilty plea to cocaine and crack cocaine trafficking before the Senior United States District Court Judge William A. Caldwell.
Today, Judge Caldwell sentenced Holmes to a sentence of 11 years of incarceration and a fine of $900. Upon his release from prison, Holmes must serve three years of supervised release.
The United States Drug Enforcement Administration, the Dauphin County Drug Task Force, and the Harrisburg Bureau of Police worked together on this investigation. Prosecution was assigned to Assistant United States Attorney Michael A. Consiglio.Gang Member Pleads GuiltyIn Dodge City Racketeering CaseRead the Press Release
WICHITA, KAN. – A Dodge City gang member has pleaded guilty to conspiring to attempt to kill a rival gang member in connection with a federal racketeering case, U.S. Attorney Barry Grissom said today.
Jesus Sanchez, 23, Dodge City, Kan., pleaded guilty to one count of conspiracy to commit acts of racketeering.
In his plea, Sanchez admitted he was a member of the Diablos Viejos and affiliated with the Norteno street gang on March 30, 2011, when he attempted to shoot and kill George Gonzalez, a member of the rival Sureno gang. Sanchez and other Norteno gang members encountered Gonzalez at the east Love’s convenience store in Dodge City. They exchanged gang signs and slurs with the victim before driving away from the store. Later, they returned and pursued Gonzalez. Near 1602 6th Avenue, Gonzalez got out of the car in which he was riding and ran up the alley toward his girlfriend’s house. As Gonzalez ran, Sanchez fired at least two shots at him from a .40 caliber handgun. The shots struck a fence.
Sanchez also admitted that on July 2, 2008, in Dodge City he and another gang member robbed a victim named Bryant Licon at knifepoint.
Sanchez admitted that Nortenos engaged in violence including assaults and robberies as a means of advancing their positions in the organization and building the gang’s reputation.
Sentencing is set for Jan. 13, 2014. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000.Sanchez was one of 23 Norteno members indicted in May 2012. It was only the second time a federal RICO Act indictment (Racketeer Influenced and Corrupt Organizations Act) had been filed in Kansas. So far, 20 of the defendants have pleaded guilty or been found guilty. Three are awaiting trial.
Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff’s Office, the Kansas Bureau of Investigation, Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney Aaron Smith for their work on the case.
Four Plead Guilty to $400,000 Stolen Vehicles, ID Theft, Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that four defendants pleaded guilty in federal court this week for their roles in a nearly $400,000 conspiracy to use identity documents, checks and credit cards that were either found in stolen vehicles or pilfered from vehicles to make fraudulent purchases and to obtain methamphetamine.
Roberta Anne Welte, 27, of Blue Springs, Mo., and Brandi Nicole Neely, 31, of Arnold, Mo., pleaded guilty in separate appearances today before U.S. District Judge Dean Whipple. Melinda R. Kermer, 28, of Raytown, Mo., and Christopher Lee Curd, 29, of Kansas City, Mo., each pleaded guilty on Tuesday, Oct. 29, 2013.
Welte and Neely each pleaded guilty today to participating in the conspiracy to illegally transport stolen vehicles across state lines from Oct. 19, 2007, to Jan. 10, 2008, and possessing and distributing methamphetamine to further the conspiracy. The purpose of the conspiracy was to steal checks, credit cards, Social Security cards, driver’s licenses and the accompanying personal identifying information in order to make fraudulent purchases at various retail stores in the Kansas City metropolitan area and to obtain methamphetamine. The total loss resulting from their participation in the conspiracy was $398,168.
On Christmas Day in 2007, Welte admitted, she worked on behalf of a co-conspirator to package stolen credit cards, checks and a Social Security card belonging to one victim, stacks of KU tickets belonging to another victim, and other stacks of checks. On the same day, she used a stolen credit card belonging to one of the victims at a Quick Trip and she possessed a stolen 2005 Acura MDX SUV belonging to two additional victims. Welte admitted that she possessed a stolen Jeep Cherokee on Oct. 25, 2007, and that she transported a stolen Navigator from Kansas to Missouri on Dec. 20, 2007. Welte also admitted that she participated in pilfering several vehicles on Dec. 20, 2007, including vehicles that belonged to four victims in Shawnee, Kan.
Neely admitted that in December 2007 and January 2008 she repeatedly used stolen credit cards to purchase hundreds of dollars worth of merchandise and fuel. On Jan. 5, 2008, she and a co-conspirator burglarized a vehicle in a garage in Blue Springs, pilfered two other vehicles in Blue Springs, and operated and possessed a stolen Dodge Intrepid belonging to a Blue Springs resident. Neely was in possession of numerous driver’s licenses, Social Security cards and other items primarily taken from additional victims whose vehicles were pilfered or stolen. Neely was also in possession of several pieces of mail that had been stolen from the mailboxes of nine Blue Springs residents in January 2008.
Kermer admitted that she stole two vehicles in November 2007 and used a credit card belonging to one of the victims to make purchases at a Wal-Mart store in Liberty, Mo. Kermer also admitted that she possessed a stolen Cadillac belonging to another victim in Sugar Creek, Mo., as well as numerous driver’s licenses, credit cards, checks, casino cards and other items that had been pilfered from various vehicles and mail that had been stolen from a Sugar Creek victim. On Dec. 25, 2007, Kermer traded 1.75 grams of methamphetamine to a coconspirator for a gold VISA credit card.
Curd admitted that he deposited $875 into his personal bank account from stolen checks that had been pilfered from a vehicle in Independence, Mo. He also admitted that he deposited a $474 stolen personal check into his bank account from an Overland Park, Kan., victim whose vehicle had been stolen. Curd deposited a $250 personal check into his bank account that was taken from the vehicle of a Lenexa, Kan., victim. He also possessed another checkbook that had been stolen from an additional victim’s vehicle in Independence, and numerous credit cards, driver’s licenses, stolen personal checks and other items.
Co-defendants Robert Alva Curd, 29, and Nicholas E. Dobbins, 25, both of Kansas City, Mo., have also pleaded guilty to their roles in the conspiracy.
Under federal statutes, each of the co-defendants are subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Jane Pansing Brown and William L. Meiners. It was investigated by the U.S. Postal Inspection Service – Office of Inspector General, the U.S. Secret Service and the Overland Park, Kan., Police Department.
Four Defendants Indicted in Alleged $10 Million Bank Fraud Scheme Involing the Sale of 26 Gas Stations in Four StatesRead the Press Release
CHICAGO — Four defendants were indicted on federal charges for their alleged roles in a scheme to fraudulently obtain more than $10 million in loan proceeds from a suburban bank through the sales of 26 gas stations in Illinois, Iowa, Nebraska and Wisconsin. Two defendants, CHARNPAL GHUMAN and AGA KHAN, co-owned the gas stations and sold them to purchasers financed by the bank loans and guaranteed in part by the Small Business Administration. They allegedly recruited purchasers and arranged the loans through a bank loan officer, AKASH BRAHMBHATT, based on false financial representations, including false tax returns prepared by SHITAL MEHTA, an accountant, both of whom also were indicted.
A fifth defendant, Khan’s brother, SHABBIR KHAN, was charged separately with tax offenses arising from the bank fraud investigation.
A 23-count indictment returned by a federal grand jury earlier this month was unsealed yesterday following the arrests of Ghuman, 34, of North Barrington, who was charged with 19 counts of bank fraud, three counts of bank bribery, and one count of filing a false federal income tax return, and Khan, 33, of Schaumburg, who was charged with four counts of bank fraud. Both men pleaded not guilty at their arraignment today and remain in federal custody pending a detention hearing at 10:30 a.m. Monday before U.S. Magistrate Judge Daniel Martin in Federal Court.
The indictment seeks forfeiture of approximately $10 million from Ghuman and Khan, as well as $198,180 in proceeds from the sale of Ghuman’s 2005 Porsche Carrera GT Coupe, which was allegedly purchased with fraud proceeds.
Brahmbhatt, 39, formerly of Naperville and currently living in Texas, and Mehta, 47, of Elk Grove Village, were each charged with one count of bank fraud. They were not arrested and will be arraigned on a date to be determined in U.S. District Court.
The arrests and charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and James C. Lee, Special Agent-in- Charge of the Internal Revenue Service Criminal Investigation Division, together with officials of the Small Business Administration Office of Inspector General, and the Federal Deposit Insurance Corporation Office of Inspector General.
According to the indictment, American Enterprise Bank, based in Buffalo Grove, was authorized to process SBA loans on its own if the loan satisfied SBA qualifications and rules, including a requirement that SBA loans could not be used to finance 100 percent of a business investment.
Between 2006 and 2009, the defendants allegedly engaged in the scheme, which involved the sales of 26 gas stations, including stations in the Illinois towns of Macomb, Mendota, New Boston, Rock Island, and Silvis, as well as three states.
As part of the scheme, Ghuman and Khan allegedly recruited purchasers of their gas stations who did not qualify for SBA loans and arranged for loans to be made in whole or in part in the name of the purchaser’s relative or friend who had acceptable credit, even though Ghuman, Khan, and Brahmbhatt knew that this straw purchaser would have no role in the gas station or repayment of the loans. In addition, the same three defendants caused false information and documents to be submitted to the bank, including false information about employment, income, assets, and liabilities; false tax returns allegedly prepared by Mehta; and false information about the purchasers’ contributions of equity.
Ghuman and Khan allegedly gave gifts to Brahmbhatt, including cars, in exchange for his alleged assistance in processing the fraudulent loans. The loan proceeds were paid to Ghuman and Khan as payment for gas stations owned by various business entities they controlled.
Ghuman alone was charged with filing a false federal income tax return for 2006, when he reported total and adjusted gross income of $203,583, and the total tax was $37,260, allegedly knowing that the actual amounts substantially exceeded those figures.
Shabbir Khan, 31, of Schaumburg, was charged separately yesterday with two misdemeanor counts of failing to file federal income tax returns for 2008 and 2009. He allegedly had gross income in 2008 in excess of $55,000 from his employment at a cell phone store and from broker’s fees paid to him by American Enterprise Bank as commissions on the loans, and gross income in excess of $30,000 in 2009 from his cell phone store employment.
Each count of bank fraud and bank bribery carries a maximum penalty of 30 years in prison and a $1 million fine. The tax count against Ghuman alone carries a maximum penalty of three years in prison and a $250,000 fine. The tax charges against Shabbir Khan each carry a maximum penalty of a year in prison and a $100,000 fine. In addition to criminal penalties, including mandatory costs of prosecution, defendants convicted of tax offenses remain responsible for any taxes and interest due, as well as civil penalties of up to 75 percent of the tax owed. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines. The government is being represented by Assistant U.S. Attorney Sheri Mecklenburg.
An indictment contains merely charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Ghuman et al Indictment
Kahn InformationFormer Water Valley Police Officer SentencedRead the Press Release
OXFORD, Miss. Felicia C. Adams, United States Attorney for the Northern District of Mississippi, and Daniel McMullen, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi, announce that:
John David Hernandez, 35, of Olive Branch, Mississippi, was sentenced on October 31, 2013 by United States District Judge Glen H. Davidson, following his plea of guilty in July 2013 to one count of extortion under color of official right, one count of money laundering, and one count of obstruction of a federal investigation. The charges arose out of Hernandez, while a Water Valley, Mississippi Police Officer, receiving money from a drug trafficker in return for providing law enforcement information.
Judge Davidson ordered Hernandez to serve 12 months and one day in custody on each count of conviction, to run concurrently, followed by 3 years supervised release. The United States Attorney’s Office obtained a forfeiture in the form of a money judgment against Hernandez in the amount of $5,000.00.
United States Attorney Felicia C. Adams stated that: “Hernandez’s actions were reprehensible.
He abused his authority, violated the law and the public trust. Today’s sentence demonstrates that such actions undermine the rule of law and will not be tolerated. While the majority of law enforcement officers are hardworking professionals who risk their lives daily for our safety, the U.S. Attorney’s
Office is committed to aggressively prosecuting those officers who break the law and violate the public trust.”This case was investigated by the Federal Bureau of Investigation, the Mississippi Bureau of Narcotics, the Drug Enforcement Administration, the Internal Revenue Service, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and was part of the Organized Crime Drug Enforcement Task Force initiative. The case was prosecuted by Assistant United States Attorneys Clyde McGee IV and Samuel D. Wright.
Former U.S. Postal Service Mail Carrier Sentenced to Prison for Role in Stolen Identity Refund Fraud SchemeRead the Press Release
Vernon Harrison, of Montgomery, Ala., was sentenced to serve 111 months in prison and three years supervised release, along with an order to pay $82,791 restitution, for his role in a stolen identity refund fraud scheme , announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney for the Middle District of Alabama George L. Beck Jr. Harrison was convicted on July 3, 2013, following a jury trial in the Middle District of Alabama. He was found guilty of conspiracy to file false claims, as well as numerous counts of mail fraud, aggravated identity theft, and embezzlement from the mail.
According to the evidence presented at the trial, Harrison was a corrupt U.S. Postal Service mail carrier who was recruited to join a stolen identity refund fraud conspiracy. Members of the conspiracy used stolen identities to file false tax returns, which claimed fraudulent tax refunds. The returns were filed from various locations, including houses and hotels around Montgomery and Birmingham, Ala. The tax refunds were placed on debit cards that were mailed to addresses along Harrison’s postal route in Montgomery. Harrison stole the debit cards from the mail and provided them to a co-conspirator in exchange for cash. During this period Harrison stole over 100 debit cards from the mail for his co-conspirators.
At trial, federal agents showed that they had uncovered substantial evidence of the conspiracy during the execution of search warrants at locations in Montgomery and near Birmingham. This evidence included over 100 envelopes for debit cards that had been mailed to addresses on Harrison’s postal route, as well as agents’ observation that Harrison failed to deliver Turbo Tax debit cards.
Kathryn Keneally, Assistant Attorney General for the Justice Department's Tax Division, commended the efforts of special agents of the Internal Revenue Service - Criminal Investigation and the U.S. Postal Service, Office of the Inspector General, who investigated the case, and Tax Division Trial Attorneys Jason Poole and Michael Boteler, who prosecuted the case. Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at www.justice.gov/tax .
Former Jail Captain Pleads Guilty to Making A False StatementRead the Press Release
Fort Myers, Florida – Acting United States Attorney A. Lee Bentley, III announces that Raymond Kugler (59, North Port) today pleaded guilty to making a false statement. Kugler faces a maximum penalty of five years in federal prison.
According to the plea agreement, on June 24, 2013, special agents from the Federal Bureau of Investigation and Florida Department of Law Enforcement interviewed Kugler, who was the captain of the Desoto County Jail in Desoto County, Florida. The interview was conducted to investigate an allegation made by inmate “J.H.” regarding the violation of his civil rights by individuals acting under the color of law, while “J.H.” was an inmate at the Desoto County Jail on or about May 25, 2013.
Kugler was questioned by agents regarding his knowledge of the events of May 25, 2013. Specifically, he was asked about his knowledge of the request to transport, and decision not to transport, inmate “J.H.” to Desoto Memorial Hospital (DMH) for medical treatment on the evening of May 25, 2013. Kugler denied his knowledge of a request to transport inmate “J.H.” to DMH, knowing that his statements were false. In fact, Kugler was aware of the request to transport the inmate and willfully and deliberately denied such knowledge to the agents.
This case was investigated by the Federal Bureau of Investigation, Florida Department of Law Enforcement and the Desoto County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Jesus M. Casas and Department of Justice Attorney Douglas Kern.
Former Executive Assistant at Oklahoma City University Pleads Guilty to Committing Wire Fraud by Misuse of University Credit CardRead the Press Release
Oklahoma City, Oklahoma – LISA CAROLIN RIGGS, 37, from Yukon, Oklahoma, pled guilty this week to committing wire fraud by misuse of her employer-issued credit card, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Riggs worked at Oklahoma City University (OCU) from May 2004 until November 2011. She worked as the executive assistant to the OCU President from May 2004 to July 2010, as executive assistant to the OCU Vice-President from July 2010 to April 2011, and as executive assistant to the OCU Dean of the School of Business from April 2011 to November 2011. In her positions, Riggs performed administrative and clerical duties that included making university-authorized purchases with an OCU credit card that had been issued in her name.
According to Court records and information from the plea hearing, from September 2004 to November 2011, Riggs used her OCU credit card to purchase various items and services for personal use, including gas, groceries, apparel, travel, wireless phone service, and payments on her Oklahoma Pikepass account. Riggs did not maintain receipts or complete and submit monthly transaction logs to her supervisor for approval as required. Her failure to do so made it appear she did not have any transactions to be approved. In the Spring of 2011, the OCU accounting department discovered the lack of documentation as part of a random audit. In sum, it was alleged that Riggs made unauthorized purchases of goods and services totaling $104,210.33.
Riggs was charged by Information on September 19, 2013, with one count of wire fraud. On October 29, 2013, Riggs pled guilty and agreed to pay restitution of $104,210.33 to OCU and $54,736.59 to the Delta Delta Chapter of Alpha Phi. At sentencing, she faces up to 20 years in prison, a $250,000 fine and restitution. A sentencing hearing will be set by the Court in approximately 90 days.
This case was the result of an investigation by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Charles W. Brown.
Former Cook County Forest Preserve District Engineer Charged with Accepting $10,000 in Kickbacks from Two District ContractsRead the Press Release
CHICAGO — Two facilities of the Forest Preserve District of Cook County, which were spruced up in 2011, became part of an FBI sting investigation that resulted in federal charges against a former assistant engineer for allegedly taking $10,000 in kickbacks from two contracts he steered to a contractor who was cooperating with law enforcement. The defendant, JOSEPH MOLLICA, was indicted yesterday on two counts of federal bribery, law enforcement officials announced today.
Mollica, 52, of Elmwood Park, will be arraigned next Wednesday in U.S. District Court. He was released on his own recognizance after he was arrested on Oct. 3 and charged initially in a criminal complaint. Mollica was an assistant engineer for the Forest Preserve District for more than 20 years until last week, and he and others had authority to influence and award contracts for work under $25,000.
Together, the indictment and complaint allege that on Oct. 14, 2011, Mollica accepted a $6,000 kickback from a $24,900 contract to refinish and refurbish the Forest Preserve District’s headquarters building, where he worked, located at 536 N. Harlem Ave., in River Forest. On Dec. 16, 2011, he allegedly accepted a $4,000 kickback from a $16,500 contract to power wash and stain the building and boardwalk and do caulking at the Sand Ridge Nature Center in Calumet City.
The indictment seeks forfeiture of $10,000 in alleged kickback payments.
In both instances, a cooperating individual, a construction company owner who recorded conversations and meetings with Mollica in which the contracts were arranged and the kickbacks were paid, appeared to perform the work properly and completely, according to the complaint affidavit of an FBI agent. The kickback payments occurred after the Forest Preserve District paid the cooperating individual for the work that was performed.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Each count of federal bribery carries a maximum penalty of 10 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines. The government is being represented by Assistant U.S. Attorney Christopher Hotaling.
An indictment contains merely charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
ComplaintFlorida Woman Pleads Guilty to Conpiracy to Launder MoneyRead the Press Release
Agrees to Forfeit $8 Million Generated by Illegal Gambling Business
Hidden in Offshore AccountsALBANY, NEW YORK – Michele Lasso-Barraza, 30, of Parkland, Florida, pled guilty to conspiracy to commit money laundering today before United States District Judge Mae A. D’Agostino announced United States Attorney Richard S. Hartunian, Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division, and Toni M. Weiracuh, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York Field Office. Lasso-Barraza, who faces up to 20 years in prison and a fine of $500,000 or twice the value of the property involved in the transaction, whichever is greater, also agreed to forfeit her interest in $8 million. Sentencing is scheduled for February 28, 2014 at 12:30 pm before Judge D’Agostino in Albany. Co-defendant, Philip Gurian, 52, of Boca Raton, Florida, previously pled guilty to the same charge and is scheduled to be sentenced on February 6, 2014.
United States Attorney Hartunian said, “Another defendant, Michele Lasso-Barraza, has now admitted to her role in laundering $8 million generated by a sprawling illegal gambling operation which used the internet, phony corporations and offshore accounts. Those engaged in this type of activity, believing that their criminal conduct is well concealed, should now be on notice that law enforcement agencies at all levels – federal, state and local – are wise to their criminal tactics and committed to stopping them. I thank all of the law enforcement agencies involved in this investigation, particularly the Federal Bureau of Investigation, Internal Revenue Service- Criminal Investigation and the Albany County Sheriff’s Department, for their diligent work over several years to investigate this international money laundering operation, bring those responsible to justice and seize and forfeit their substantial ill-gotten gains.”
Special Agent-in-Charge Vale said, “This case illustrates the FBI’s ongoing commitment in working alongside our federal, state and local counterparts to root out illegal gambling locally, nationally and internationally. The plea of Ms. Lasso-Barraza to money laundering charges and the agreement to forfeit $8 million illustrates that the FBI will not tolerate this type of criminal activity at any level.”
Internal Revenue Service-Criminal Investigation Special Agent-in-Charge Weirauch said, “International money laundering is not the victimless crime that some may think it is. Money laundering, including the laundering of illegal gambling proceeds, facilitates the underground, untaxed economy, which, in turn, harms our nation’s strength. IRS-Criminal Investigation is always ready to work with our law enforcement partners in the fight against this threat to our country.”
As part of the plea, Lasso-Barraza admitted her involvement in an illegal gambling business run by Gurian and others which used internet websites that allowed bettors to place thousands of wagers from the Capital District, Florida, Indiana, California, Texas, and Nevada. She also admitted to participating in the laundering of at least $8 million on behalf of Gurian that was generated from the illegal gambling business. That money was transferred to offshore accounts in Panama, Andorra, and the Cayman Islands. Lasso-Barraza created some sham entities and then set up some of the accounts in the names of those sham entities.
These charges were the result of a joint investigation initiated by the Albany County Sheriff’s Office, and joined by the Albany County District Attorney’s Office, the Saratoga District Attorney’s Office, the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, and the Broward County Money Laundering Task Force. The case is being prosecuted by Assistant United States Attorney Robert A. Sharpe.
Federal Inmate Sentenced to 2 More Years in Prison for Possessing Marijuana and HeroinRead the Press Release
JOHNSTOWN, Pa. – An inmate of FCI Loretto has been sentenced in federal court to 24 months in prison, to be served consecutive to the 140-month sentence he is currently serving, on his conviction of possession of contraband in prison, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Lonnie Johnston, 32. According to information presented to the court, on Oct. 31, 2012, Inmate Johnston possessed heroin and marijuana.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Special Investigative Staff at the Federal Correctional Institution at Loretto for the investigation leading to the successful prosecution of Johnston.
Farmington Man Sentenced to Fifteen Years in Federal Prison for Drug Trafficking and Firearms Conviction Moreno Prosecuted as Part of "Worst of the Worst" Anti-Violence InitiativeRead the Press Release
ALBUQUERQUE – Martin Moreno, 53, of Farmington, N.M., was sentenced today to 15 years in federal prison followed by five years of supervised release for his conviction on drug trafficking and firearms charges. Moreno also was ordered to pay a $20,000 fine.
Moreno’s sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, 11th Judicial District Attorney Robert P. “Rick” Tedrow, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas, and Commander Neil Haws of the Region II Narcotics Task Force.
Moreno was arrested in March 2012, on a federal criminal complaint charging him with drug trafficking offenses. He subsequently was charged in a seven-count second superseding indictment with possession of methamphetamine, cocaine and marijuana with intent to distribute; using and carrying a firearm in furtherance of a drug trafficking crime; and three counts of being a felon in possession of firearms and ammunition. According to court records, Moreno possessed the narcotics, numerous firearms and ammunition on Feb. 27, 2012, in San Juan County, N.M. At the time, Moreno was prohibited from possessing firearms and ammunition because he previously had been convicted of trafficking cocaine in the 11th Judicial District Court for the State of New Mexico in San Juan County. Moreno was arrested on state charges in Feb. 2012, which were dismissed after the federal charges were filed.
The charges against Moreno arose from evidence seized on Feb. 27, 2012, when the Region II Narcotics Task Force and HSI executed search warrants authorizing searches of Moreno’s residence, two storage lockers and a truck. They also were based on Moreno’s acknowledgement that he was the owner of the contents of the storage lockers and his truck.
In July 2013, Moreno entered a guilty plea to all seven counts of the second superseding indictment. In his plea agreement, Moreno admitted that on Feb., 27, 2012, he possessed approximately 120 grams of methamphetamine, a kilogram of cocaine and a kilogram of marijuana, all of which were stored in a storage locker in Farmington. He also admitted keeping a stolen pistol and ammunition in the storage locker for the purpose of protecting the drugs.
Moreno also admitted that in a different storage locker, he stored 14 firearms, including a machine gun, shotguns, hunting rifles and semi-automatic rifles. He acknowledged that as a convicted felon, he was prohibited from owning firearms.
In his plea agreement, Moreno also admitted possessing additional amounts of drugs, including a small amount of methamphetamine and a supply of marijuana, and a pistol at his residence. Moreno also acknowledged that the $3,000 in cash found in his bedroom and the $66,000 in cash found in his truck were the proceeds of his narcotics trafficking activities.
Moreno’s plea agreement requires that Moreno forfeit the firearms, ammunition and narcotics proceeds seized on Feb. 27, 2012.
This case was investigated by the Albuquerque office of HSI and the Region II Narcotics Task Force. The case was prosecuted by Assistant U.S. Attorneys Nicholas Jon Ganjei and Samuel A. Hurtado as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Fairborn Man Receives 78-month Sentence for Interstate Transportation for Purpose of Illegal Sexual ActivityRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – Thuron L. Hammersley, 44, of Fairborn, Ohio was sentenced in U.S. District Court today to 78 months in federal prison for transporting an individual from Ohio to Kentucky for purposes of engaging in prostitution, in violation of the “Mann Act.”
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division of the U.S. Department of Justice, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI), Dayton Police Chief Richard Biehl and Miamisburg Police Chief John Sedlak announced the sentence imposed today by U.S. District Judge Timothy S. Black.
Hammersley was also sentenced to serve five years under court supervision after his release from prison. During that time, his computer use will be monitored. Hammersley was ordered to pay restitution and must register as a sex offender if required in any jurisdiction where he lives, works or goes to school.
Hammersley pleaded guilty in August to one count of transportation of an individual to engage in prostitution. He also acknowledged that he had enticed a woman to travel from Kentucky to Ohio also to engage in prostitution, and that he had obstructed the investigation into his activities.
According to court documents, Hammersley met the women on the website plentyoffish.com and placed ads for them on the internet site backpage.com offering the women as “escorts.” He directed the men who responded to the ads to motels in Kentucky and Ohio, where they engaged in sexual activity for money. He also enticed another woman to travel from Kentucky to the Dayton area to engage in prostitution. Hammersley enticed her by offering her employment, by paying for her bus ticket, and by paying for condoms. Hammersley collected the money paid by the men.
The case was investigated by the FBI and the Dayton and Miamisburg police departments. Assistant U.S. Attorneys Vipal Patel and Alex R. Sistla and Department of Justice Trial Attorney Betsy Biffl prosecuted the case.
Eighteen Individuals Charged with Participating in Tri-State Methamphetamine Trafficking ConspiracyRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney Steven C. Yarbrough and Joseph M. Arabit, Special Agent in Charge of DEA’s El Paso Division, announced the indictment of 18 individuals who allegedly participated in a tri-state drug trafficking organization that obtained methamphetamine from Arizona and Texas and distributed the drugs in Otero and Doña Ana Counties, N.M.
The 43-count indictment, which was filed under seal on Oct. 16, 2013, was unsealed yesterday following a multi-agency law enforcement operation that resulted in the arrest of eight of the 18 defendants, including five residents of Alamogordo, N.M. Two other defendants were arrested on Oct. 29, 2013 in Arizona and two more are in state custody on unrelated charges. Six defendants have yet to be arrested and are considered fugitives.
The defendants arrested in New Mexico will make their initial appearances in Las Cruces federal court this morning. The defendants arrested in Arizona will be transferred to New Mexico and the defendants in state custody will be transferred to federal custody to face the charges in the indictment.
The indictment charges all 18 defendants with conspiracy to distribute quantities of methamphetamine in Otero and Doña Ana Counties between Jan. 2013 and June 2013. The indictment also includes 14 substantive methamphetamine distribution counts and 28 “phone” counts which allege the use of communication devices to facilitate drug trafficking crimes.
The indictment is the result of an eleven-month multi-agency investigation led by the DEA that was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program. The OCDETF program is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. During the course of the investigation, law enforcement officers seized approximately 3.3 kilograms of methamphetamine and $16,000 in cash.
Acting U.S. Attorney Steven C. Yarbrough emphasized the importance of the multi-agency investigation: “Methamphetamine is the drug most often associated with violent crime and property crime in New Mexico. When we attack methamphetamine trafficking in our communities, we reduce the incidence of other crime that goes hand in hand with drug trafficking. I am proud of being part of an operation that is a significant step in improving the public safety in Otero and Doña Ana Counties. Together with our law enforcement partners, we will continue our relentless pursuit of meth trafficking rings that operate in our communities throughout New Mexico.”
“With these arrests and seizures, DEA and its federal, state, and local law enforcement partners have dismantled an organization responsible for distributing large quantities of methamphetamine in southern New Mexico. Methamphetamine destroys the lives of its abusers and threatens the overall health and safety of our communities. We will continue to work together to target criminal organizations and their assets to ensure that drug traffickers are held responsible for the harm they cause,” said Joseph M. Arabit, Special Agent in Charge of DEA’s El Paso Division.
Assistant U.S. Attorneys Renee L. Camacho and Sarah M. Davenport of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case, which was investigated by the Las Cruces office of the DEA, the Sunland Park Police Department, New Mexico State Police, Las Cruces/Doña Ana County Metro Narcotics Agency, Las Cruces Police Department, Alamogordo Police Department, and Bureau of Alcohol, Tobacco Firearms and Explosives.
The following law enforcement agencies participated in yesterday’s law enforcement operation: DEA’s offices in Las Cruces, El Paso, Texas, Phoenix, Ariz., and Tucson, Ariz.; the FBI’s office in Las Cruces; the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Border Patrol, U.S. Marshals Service, Doña Ana County Sheriff’s Office, Las Cruces Police Department, Las Cruces/Doña Ana County Metro Narcotics Agency, Alamogordo Police Department, and Sunland Park Police Department.
Summary of Indictment
Count 1 of the Indictment charges all eighteen defendants with conspiracy to distribute methamphetamine. The maximum penalty for a conviction on this count is imprisonment for not less than ten years or more than life and a $10,000,000 fine.
Counts 2-4, 6-7, 9, 11, 13, 16-17, 20, 29, 32 and 43 of the indictment charge certain defendants with possession of methamphetamine with intent to distribute. The maximum penalty for a conviction on each of these counts is imprisonment for not more than 20 years and a $1,000,000 fine.
Counts 5, 8, 10, 12, 14-15, 18-19, 21-28, 30-31 and 33-42 of the indictment charge certain defendants with using a communications device (telephone) to facilitate a drug trafficking crime. The maximum penalty for a conviction on each of these counts is imprisonment for not more than four years and a $250,000 fine.
Charges Against Defendants
Roxann Renee Vasquez, 40, of Duncan, Ariz., is charged in Counts 1, 21, 24 and 39 of the indictment. Vasquez was arrested on Oct. 29, 2013 in Duncan, Ariz.
Jessie Jesus Marquez, 34, of Las Cruces, N.M., is charged in Counts 1, 13, 23, 29-30, 36 and 41 of the indictment. Marquez has yet to be arrested and is considered a fugitive.
Michelle Darlene Casillas, 36, of Phoenix, Ariz., is charged in Counts 1 and 19 of the indictment. Casillas was arrested yesterday in Phoenix.
Cornelio Barrera, 40, of Deming, N.M., is charged in Counts 1 and 38-40 of the indictment. Barrera was arrested on Oct. 29, 2013 in Duncan, Ariz.
Anthony Frank Montoya, 26, of Alamogordo, N.M., is charged in Counts 1, 10 and 15 of the indictment. Montoya is in state custody on unrelated charges and will be transferred to federal custody.
Demetrio Edwardo Stogden, 33, of Alamogordo, N.M., is charged in Counts 1, 14, 18, 26, and 35 of the indictment. Stogden is in state custody on unrelated charges and will be transferred to federal custody.
Jessica Marie Gomez, 30, of Phoenix, Ariz., is charged in Counts 1, 42 and 43 of the indictment. Gomez has yet to be arrested and is considered a fugitive.
Jay T. Black, 44, of Tularosa, N.M., is charged in Counts 1, 11, 17, 22 and 32 of the indictment. Black was arrested yesterday in Tularosa.
Rustan Turner, 49, of Alamogordo, N.M., is charged in Counts 1, 2 and 34 of the indictment. Turner was arrested yesterday in Alamogordo.
Carlos John Maldonado, 37, of Las Cruces, N.M., is charged in Counts 1, 3 and 25 of the indictment. Maldonado has yet to be arrested and is considered a fugitive.
Cecilia Chavez, 52, of Alamogordo, N.M., is charged in Counts 1, 2, 5 and 33 of the indictment. Chavez was arrested yesterday in Alamogordo.
John Frank Herrera, 44, of Alamogordo, N.M., is charged in Counts 1, 6, 7 and 17of the indictment. Herrera was arrested yesterday in Alamogordo.
Michael Paul Lucero, 39, of Alamogordo, N.M., is charged in Counts 1, 4 and 8 of the indictment. Lucero was arrested yesterday in Alamogordo.
Paul Steven McGranahan, 44, of Las Cruces, N.M., is charged in Counts 1, 28, 31 and 37 of the indictment. McGranahan has yet to be arrested and is considered a fugitive.
Stephan E. Morales, 30, of Las Cruces, N.M., is charged in Counts 1 and 27 of the indictment. Morales was arrested yesterday in Las Cruces.
Jasmine Lara Robertson, 35, of Alamogordo, N.M., is charged in Counts 1, 2, 9, 12 and 16 of the indictment. Robertson was arrested yesterday in Alamogordo.
Stephanie Taylor, 26, of Alamogordo, N.M., is charged in Counts 1, 2 and 20 of the indictment. Taylor has yet to be arrested and is considered a fugitive.
Bret Hampton, 33, of Las Cruces, N.M., is charged in Count 1 of the indictment. Hampton has yet to be arrested and is considered a fugitive.
- Indictment
Eagle Butte Man Sentence for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted in July by a federal jury of Assault Resulting in Serious Bodily Injury was sentenced on October 28, 2013, U.S. District Judge Roberto A. Lange.
Morrison was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
Stanley Blake Morrison, age 32, was sentenced to 37 months in custody, 18 months of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
The conviction stemmed from a January 2013 incident in which Morrison assaulted a Cherry Creek man with his fists, fracturing several facial bones and causing serious injury to the victim.
The Cheyenne River Sioux Tribe Law Enforcement Division conducted the investigation. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Duryea WomanRead the Press Release
Sentenced For Involvement In Cocaine Distribution Conspiracy
The United States Attorney's Office for the Middle District of Pennsylvania announced today that Senior United States District Court Judge Edwin M. Kosik has sentenced Leslie Williams, age 31, of Duryea, Pennsylvania, to one year of imprisonment for her involvement in a cocaine distribution ring centered in Pittston, Pennsylvania.
According to United States Attorney Peter J. Smith, Williams admitted her role of receiving and distributing cocaine at a bar in Luzerne County where she worked during her guilty plea to the charge. In addition to the one-year term of imprisonment, Judge Kosik also ordered that Williams be placed on supervised release for a period of two years following the service of her sentence.The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Pennsylvania Attorney General’s Office. Assistant United States Attorney John Gurganus prosecuted the case.
Dupree Woman Pleads Guilty to Child Abuse and NeglectRead the Press Release
United States Attorney Brendan V. Johnson announced that Alisa Knight, age 29, of Dupree, South Dakota, appeared before U.S. District Judge Roberto A. Lange on October 28, 2013, and pled guilty to Child Abuse and Neglect.
The maximum penalty upon conviction is 15 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from incidents that happened on or between December 25, 2011, and December 25, 2012, when Knight resided in Dupree with her three minor children. Among the children was the victim who witnessed the defendant on more than one occasion ingest controlled substances, primarily methamphetamine, a Schedule II controlled substance. Such acts were committed in the presence of the young victim and while the victim was under the care, custody and control of Knight. As a result, the victim gained knowledge of what methamphetamine is, how to ingest it, and where Knight obtained it.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Knight was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for December 19, 2013. A presentence investigation has been ordered.
Danbury Woman Sentenced to 57 Months in Federal Prison for Trafficking OxycodoneRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that VASILIKI PAPADAKOS, 61, of Danbury, was sentenced today by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 57 months of imprisonment, followed by three years of supervised release, for trafficking oxycodone.
This matter stems from a year-long investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Norwalk Police Department into the trafficking of oxycodone, cocaine and marijuana in Fairfield County. Sixteen individuals have been charged as a result of this investigation.
According to court documents and statements made in court, during the investigation, PAPADAKOS traveled to New York on at least three occasions to pick up hundreds of 30-milligram oxycodone pills from her supplier. Also, in February 2012, PAPADAKOS was intercepted over a court-authorized wiretap arranging the purchase of 2,000 15-milligram oxycodone pills. Over a three-month period, PAPADAKOS facilitated the distribution of 8,000 pills with a total street value that exceeded $100,000.
PAPADAKOS has been detained since her arrest on May 8, 2012. On March 18, 2013, she pleaded guilty to one count of conspiring to possess with intent to distribute oxycodone.
In 1992, PAPADAKOS received a 188-month federal sentence for trafficking cocaine, heroin and marijuana. She was released from prison in February 2005.
This matter is being investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Norwalk Police Department, with assistance provided by the Connecticut State Police and the Bridgeport, Stamford and Stratford Police Departments. The case is being prosecuted Assistant U.S. Attorneys Vanessa Richards and Michael Runowicz.
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(203) 821-3722 [email protected]Columbus Tax Return Preparer Guilty of False ClaimsRead the Press Release
Felicia C. Adams, United States Attorney for the Northern District of Mississippi, and Gabriel “Gabe” Grchan, Special Agent in Charge of the Internal Revenue Service Criminal Investigation, New Orleans Field Office, announce that:
Cynthia H. Carter, 27, of Columbus, Mississippi, pled guilty on October 24 to filing a false claim with the federal government. Carter will be sentenced in approximately 90 days. Carter faces up to five years imprisonment, up to a $250,000 fine and up to three years supervised release.
The investigation by Internal Revenue Service Criminal Investigations revealed that Carter submitted tax returns to the IRS fraudulently claiming the First Time Home Buyers Credit. The false returns resulted in claimed refunds of approximately $3,838,312.
Return Preparer fraud is a priority for IRS Criminal Investigation, and we have committed many resources to investigating and prosecuting cases just like this one,” said Gabriel Grchan, Special Agent in Charge, IRS-CI, New Orleans Field Office. “It is my hope that the guilty plea entered today by Cynthia Carter further assures the taxpaying citizens of our country that IRS – CI is serious about protecting the United States Treasury.”
This case was investigated by Special Agents of the Internal Revenue Service, Criminal Investigation and was prosecuted by the Office of the United States Attorney for the Northern District of Mississippi.
Colorado Springs Man and Member of "North American May-Boy Love Association" Indicted by Federal Grand JuryRead the Press Release
DENVER – A federal grand jury in Denver recently returned an indictment charging Clifton Brett Bennett, age 55, of Colorado Springs, Colorado, with one count of receipt of child pornography and one count of possession of child pornography, the U.S. Attorney’s Office, and the U.S. Postal Inspection Service, the Colorado Springs Police Department -- Internet Crimes Against Children Task Force (ICAC) announced. Bennett appeared in U.S. District Court in Denver on October 29, 2013. He did not contest the government’s request that he be detained. He was also arraigned. A tentative trial date of January 6, 2014 before U.S. District Court Judge Christine M. Arguello has been set.
According to the indictment, between November 1, 2008 and April 15, 2011 Bennett knowingly received material that contained child pornography. Further, on January 23, 2013, Bennett knowingly possessed child pornography. According to a state affidavit of probable cause, a United States Postal Inspector contacted an ICAC detective regarding a child pornography investigation. Postal Inspectors had identified an individual who lived in Colorado Springs who made over $4,000 in purchases for over 100 child pornography videos over a number of years. Follow up investigation determined the individual was Clifton Bennett.
A search warrant was executed at Bennett’s residence. During the execution of the warrant a detective conducted a forensic preview of the computer, and found images of prepubescent boys who were nude and posed in sexually explicit positions with their genitals exposed. They also found DVDs containing child pornography – many of which were delivered via U.S. Mail from New York. He also allegedly bought and downloaded child pornography as well. Investigators also determined that Bennett was a member of the “North American Man-Boy Love Association.” Following the execution of the search warrant Bennett was arrested and held in state custody. With the return of a federal indictment the state dismissed their case in its entirety.
If convicted of receipt of child pornography the defendant faces not less than 5 years and not more than 20 years in federal prison, and up to a $250,000 fine. If the defendant has a prior qualifying child exploitation conviction, he faces not less than 15 years and not more than 40 years imprisonment, as well as a fine of up to a $250,000. If convicted of possession of child pornography the defendant faces not more than 10 years in federal prison, and up to a $250,000 fine. If the defendant has a prior qualifying child exploitation conviction, he faces not less than 10 years and not more than 20 years imprisonment, as well as a fine of up to $250,000. Bennett has a prior state conviction for Sexual Exploitation of Children, for which he served time in jail.
“The defendant in this case obtained some of his child pornography through the U.S. Mail,” said U.S. Attorney John Walsh. “Regardless of how defendants obtain their explicit material showing children being sexually abused, we will use every tool available to prosecute them.”
“Protecting children from these egregious crimes remains a top priority for the U.S. Postal Inspection Service,” said Adam P. Behnen, Inspector in Charge, U.S. Postal Inspection Service, Denver Division. “We continue to aggressively investigate, apprehend and assist in the prosecution of individuals who seek to sexually exploit children via the U.S. Mail.”
“Children are not a commodity. They remain our most precious resource and need to be protected,” said Colorado Springs Police Chief Peter T. Carey. “I applaud the diligence of our ICAC Unit in safeguarding our children from those who prey on them.”
This case was investigated by the United States Postal Inspection Service and the Colorado Springs Police Department -- Internet Crimes Against Children Task Force (ICAC).
Bennett is being prosecuted by Assistant U.S. Attorney Valeria Spencer.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
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Co-founder of Liberty Reserve Pleads Guilty to Money Laundering in Manhattan Federal CourtRead the Press Release
Vladimir Kats, 41, of Brooklyn, N.Y., pleaded guilty today in federal court before U.S. District Judge Denise L. Cote to money laundering and operating an unlicensed money transmitting business. The charges stem from his role in running Liberty Reserve, a company that operated one of the world’s most widely used digital currency services and allegedly laundered more than $6 billion in suspected proceeds of crimes.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Preet Bharara of the Southern District of New York made the announcement.
“Vladimir Kats, by his own admission, helped to create and operate an anonymous digital currency system that provided cybercriminals and others with the means to launder criminal proceeds on an unprecedented scale,” said Acting Assistant Attorney General Mythili Raman. “His conviction reinforces what we said when Liberty Reserve was first brought down: banking systems that allow criminals to conduct illegal transactions anonymously will not be allowed to stand, and professional money launderers will be brought to justice.”
“As a co-founder and operator of Liberty Reserve, Vladimir Kats served as a global banker for criminals, giving them an anonymous, online forum to hide the proceeds of their illegal and dangerous activities,” said U.S. Attorney Preet Bharara. “With his guilty plea today, we take a significant step toward punishing those responsible for creating and running this international den of cybercrime.”
According to court records, Liberty Reserve was incorporated in Costa Rica in 2006 and billed itself as the Internet’s “largest payment processor and money transfer system.” Liberty Reserve allegedly was created and structured, and operated, to help users conduct illegal transactions anonymously and launder the proceeds of their crimes, and it emerged as one of the principal money transfer agents used by cybercriminals around the world to distribute, store, and launder the proceeds of their illegal activity. Liberty Reserve allegedly was used extensively for illegal purposes, functioning as the bank of choice for the criminal underworld because it provided an infrastructure that enabled cybercriminals to conduct anonymous and untraceable financial transactions.
According to the indictment, before being shut down by the government in May 2013, Liberty Reserve had more than one million users worldwide, including more than 200,000 users in the United States, who conducted approximately 55 million transactions through its system and allegedly laundered more than $6 billion in suspected proceeds of crimes, including credit card fraud, identity theft, investment fraud, computer hacking, child pornography, and narcotics trafficking. Kats co-founded Liberty Reserve and helped operate the company until in or about 2009.
Kats was arrested in Brooklyn in May 2013 and pleaded guilty today to one count of conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison; one count of conspiring to operate an unlicensed money transmitting business, which carries a maximum sentence of five years in prison; one count of operating an unlicensed money transmitting business, which carries a maximum sentence of five years in prison; one count of receiving child pornography, which carries a maximum sentence of 40 years in prison and a mandatory minimum sentence of 15 years in prison; and one count of marriage fraud, which carries a maximum sentence of five years in prison. A sentencing date has not yet been scheduled.
This case is being investigated by the Secret Service, the Internal Revenue Service-Criminal Investigation and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from the Secret Service’s New York Electronic Crimes Task Force. The Judicial Investigation Organization in Costa Rica; the National High Tech Crime Unit in the Netherlands, the Financial and Economic Crime Unit of the Spanish National Police; the Cyber Crime Unit at the Swedish National Bureau of Investigation; and the Swiss Federal Prosecutor’s Office also provided assistance.
This case is being prosecuted jointly by the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS) and the U.S. Attorney’s Office’s Complex Frauds Unit and Asset Forfeiture Unit in the Southern District of New York, with assistance from the Criminal Division’s Office of International Affairs and Computer Crime and Intellectual Property Section.
Trial Attorney Kevin Mosely of AFMLS and Assistant U.S. Attorneys Serrin Turner and Andrew Goldstein of the Southern District of New York are in charge of the prosecution, and Assistant U.S. Attorney Christine Magdo is in charge of the forfeiture aspects of the case.
The charges in the indictment against Kats’s co-defendants remain pending and are merely accusations. Those defendants are presumed innocent unless and until proven guilty.
Clinton Woman Pleads Guilty to Bank Fraud and Tax EvasionRead the Press Release
Jackson, Miss. -- Barbara Cummings, 60, of Clinton, pled guilty today in U.S. District Court to bank fraud and tax evasion, announced U.S. Attorney Gregory K. Davis, FBI Special Agent in Charge Daniel McMullen and IRS Criminal Investigation Special Agent in Charge Gabriel Grchen. A federal grand jury returned a five-count indictment against Cummings on January 24, 2013, charging her with one count of bank fraud, one count of aggravated identity theft and three counts of tax evasion.
Cummings will be sentenced by U.S. District Court Senior Judge David C. Bramlette III on January 14, 2013, at 10:30 a.m. The bank fraud charge carries a maximum of 30 years in prison, a $1,000,000 fine, and up to five years of supervised release. The tax evasion charge carries a maximum penalty of five years in prison, a $250,000 fine, and up to three years of supervised release.
From March 2007 through March 2009, Barbara Cummings, was employed as the office manager at Mid-South Machinery in Jackson. During her employment, she systematically forged the signatures of the owners of Mid-South Machinery on numerous checks drawn on Mid-South Machinery’s accounts at First Commercial Bank, making such forged checks payable to herself and her husband and cashing and depositing such funds into her personal bank account. Cummings also altered the dollar amounts written on transaction tickets from Mid-South’s Regions Bank account that were made payable to “Petty Cash” or she would fraudulently create a transaction ticket, making it payable to “Barbara Cummings,” and keep some or all of the money. When interviewed by agents of the FBI and IRS, Cummings admitted to embezzling the funds from Mid-South by defrauding the banks. During 2008, she prepared her own income tax return, where she intentionally failed to report over $120,000 in income she had received that year through her fraudulent scheme in order to pay less tax on her income.
In announcing the guilty plea, U.S. Attorney Davis praised the efforts of special agents from the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Mike Hurst is prosecuting the case.###
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Child Pornographer Sentenced to Five YearsRead the Press Release
Elijah Fogle, 22, of Charlotte, North Carolina, was sentenced today to 60 months in prison for distribution of child pornography, receipt of child pornography, and possession of child pornography. U.S. District Court Judge Petrese Tucker also ordered 10 years of supervised release and a $300 special assessment.
Fogle pleaded guilty on July 30, 2013 and admitted that he had amassed a collection of child pornography on his computer and a thumb-drive that included hundreds of images and videos of children being sexually abused. He also admitted that he had distributed and received child pornography images over the Internet by uploading them to a file sharing website.
A special agent with Homeland Security Investigations, acting in an undercover capacity, signed into a “covert” account on a private peer to peer network in February 2012 and engaged in an online chat with a user later identified as the defendant. During the chat, Fogle advised he had folders to share that were on a flash drive and needed to be online for viewing. That same day, the agent selected 19 video files and discovered child exploitation activity. The downloaded files depicted children engaged in sexually explicit conduct. A full forensic examination of the defendant’s laptop computer and thumb-drive was conducted during which 835 images and 362 videos of child pornography were recovered. The images and videos on the thumb drive were contained in a hidden folder, which was consistent with being created to avoid discovery. The majority of the collection depicts prepubescent and pubescent males, many of which are clearly under the age of 12 years. During an interrogation the defendant admitted that he had sexually abused a 12 year old boy from his neighborhood in North Carolina.
The case was investigated by the Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Tomika N. Stevens.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Central Ohio Supplier of “Mountain of Marijuana” Sentenced to More Than 11 Years in PrisonRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCOLUMBUS, Ohio —A Columbus man was sentenced Thursday to 135 months in federal prison for his role as a supplier in a large-scale drug-trafficking and money-laundering conspiracy that was targeted and dismantled by the Central Ohio HIDTA (High Intensity Drug Trafficking Area) Drug Task Force.
U.S. Attorney Carter Stewart, Ohio Attorney General Mike DeWine, William Hayes, acting special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Detroit, which covers Michigan and Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), Franklin County Sheriff Zach Scott, Columbus Police Chief Kimberley Jacobs and other members of the task force announced the sentence handed down today by U.S. District Judge Gregory L. Frost.
Levi Winston, 50, of Columbus, Ohio, pleaded guilty on May 2, 2013 to charges of conspiracy to possess and distribute more than 1,000 kilograms of marijuana and money laundering. Judge Frost sentenced Winston to 135 months on each count and ordered the sentences to run concurrently.
“Mr. Winston’s conduct is that of bringing in a literal mountain of marijuana into the Southern District of Ohio,” Assistant U.S. Attorney Michael Hunter told the court. “His admitted relevant conduct is approximately 5,000 kilos of marijuana which has an approximate street value of between four- and four point five million dollars.”During the course of the investigation, a known drug trafficking organization transported several tons of marijuana from Mexico to central Ohio. Winston and his associates hid large quantities of the drugs inside tractor trailers and industrial machinery. On October 17, 2011, HSI special agents and task force conducted a controlled delivery of 1,798.12 pounds of marijuana to a warehouse that Winston had rented located in Gahanna, Ohio. Winston and several of his associates were later arrested on conspiracy to distribute illegal drug charges.
The HIDTA Task Force is operated as part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission. “We are pleased by the strong work coming out of this OOCIC task force to fight organized drug crimes,” said Attorney General DeWine. “This is a clear example of successful teamwork between local, state, and federal agencies.”
"This sentence emphasizes HSI's mission to take down major trafficking organizations in our communities," said William Hayes, acting special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Detroit, which covers Michigan and Ohio. "HSI remains committed to working with our law enforcement partners to dismantle and disrupt these criminal conspiracies."“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations,” said Kathy A. Enstrom, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office. “IRS-CI is united with the rest of the law enforcement community in our resolve to financially disrupt criminal organizations that commit crimes against our society.”
Sheriff Zach Scott said of the investigation, “I would like to congratulate the Central Ohio HIDTA Drug Task Force and the US Attorney’s Office on a job well done. Drug traffickers prey on Central Ohio because of its ideal geographic location. This is a prime example of agencies working together to send a loud and clear message that drug trafficking will not be tolerated in Franklin County and law enforcement will be diligent in bringing those involved to justice.”
According to Columbus Police Chief Kim Jacobs, “The level of cooperation between local, county, state and federal authorities continues to play an important role in keeping the citizens of Columbus safe and in reducing the availability of illegal drugs in the Columbus area.”
In addition to the nearly 2500 pounds of marijuana seized by investigators in Columbus, the cooperation of several individuals and intelligence gathered during the investigation of this conspiracy has directly led to the seizure of an additional 3500 pounds of marijuana worth more than $3 million dollars in several other jurisdictions across the United States.
Other agencies participating in the investigation include Franklin County Prosecutor Ron O’Brien’s Office, the Ohio Bureau of Criminal Identification, the U.S. Postal Inspection Service, Gahanna Police Department, Ohio State Highway Patrol, Hilliard Division of Police, Ohio Casino Control Commission and the Ohio National Guard Counterdrug Program.
Nine other individuals have pleaded guilty to possession with the intent to distribute narcotics or conspiracy as a result of the investigation: Didnicio Diaz-Barrera – Sentenced October 10, 2012 to 33 months in federal prison.
Adan Anaya – Sentenced June 6, 2012 to 57 months in federal prison.
Pedro Barrera-Diaz– Sentenced June 10, 2012 to 33 months in federal prison.
Alberto Hernandez – Sentenced June 6, 2012 to 12 months in federal prison.
Antonio Andriao – Sentenced May 1, 2012 to 21 months in federal prison.
Steven Johnson– Sentenced August 8, 2013 to 60 months in federal prison.
Robert Crook -- Sentenced September 20, 2013 to 12 months in federal prison.
Jose Garza -- Sentenced September 17, 2013 to 46 months in federal prison.
Marco Torres – Sentenced August 8, 2013 to 24 months in federal prison.U.S. Attorney Stewart commended the cooperative investigation by the agencies, as well as Assistant U.S. Attorney Hunter, who prosecuted the case.
Cedar Rapids Man Sentenced for Million Dollar Investment FraudRead the Press Release
A man who defrauded investors out of more than $1,000,000 was sentenced today to more than four years in federal prison.
Jeffrey J. Kinseth, age 58, from Cedar Rapids, Iowa, received the prison term after a July 11, 2013, guilty plea to one count of wire fraud.
In a plea agreement, Kinseth admitted he was the president and principal shareholder of Virtual Vision, Inc. Kinseth admitted that, between March 2008 and September 2009, he solicited and accepted hundreds of thousands of dollars from at least eleven individual investors. Kinseth admitted falsely telling the investors all of their money would be invested through Virtual Vision as a purported pooled investment vehicle. Kinseth admitted he told the investors this, knowing he would, at least at times, fail to invest all of the investors= money and use some of the money to make payments to earlier investors and for other purposes. Kinseth also admitted that, of the investor funds actually traded, he consistently sustained losses. Kinseth admitted fraudulently concealing his misappropriation and trading losses by creating and issuing false account statements to investors that falsely reflected purported profits from their trading.
According to information disclosed at sentencing, Kinseth operated a Ponzi scheme that stretched from about October 2006 to about March 2010.
Kinseth was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Kinseth was sentenced to fifty-one months’ imprisonment to be followed by a three-year term of supervised release. Kinseth was also ordered to make $1,107,414.51 in restitution to the victims of his offense. There is no parole in the federal system.
Kinseth was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Peter Deegan and was investigated by the Federal Bureau of Investigation in cooperation with the Commodity Futures Trading Commission, the Securities and Exchange Commission, and the Office of the United States Trustee.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-51 LRR.
Cary Business Owner Sentenced to over 5 Years in Federal Prison for International Fraud SchemeRead the Press Release
ROCKFORD – A Cary, Ill. business owner was sentenced today in federal court by U.S. District Judge Frederick J. Kapala to 63 months in federal prison for conducting a three and half year, multi-million dollar, international fraud scheme. Judge Kapala also ordered that CLARE THOMAS ANDERSON, 45, serve 3 years of supervised release following his release from prison, and pay restitution of $6,191,155 to the companies he victimized. Anderson, who owned and operated multiple businesses in Cary, Ill., and Florida, pled guilty to a federal wire fraud charge on April 5, 2012.
According to the written plea agreement, Anderson owned and operated the following businesses: Certifibre, LLC; Anderson International Global, LLC, which had an assumed name of Worldwide Paper Company, Inc.; American Surplus Supply; Southernmost Exports, LLC, Southernmost Holdings, LTD; and Sea Consulting, LLC. Through these businesses, Anderson contracted to sell wood pulp and other raw materials to manufacturers, brokers and suppliers, which were usually located in foreign countries.
Anderson obtained payments from his customers before the shipments arrived at their destinations. Often, the customers obtained Letters of Credit from their banks in order to pay for the shipments in advance. Anderson admitted that he obtained these payments by creating and presenting fraudulent documents to his customers. These documents falsely represented the quantity and quality of materials that had been shipped.
Anderson further admitted that, instead of shipping the wood pulp or other raw materials he had agreed to sell, he frequently shipped worthless scrap material to his foreign customers. When the customers called him to complain, Anderson falsely told them that the scrap materials were intended for other customers in different countries.
Anderson also admitted that on some occasions, instead of shipping the agreed upon amounts of wood pulp or other raw materials, he shipped substantially smaller amounts. When the customers called and complained about the short shipments, Anderson falsely told them that the short shipments were caused by clerical errors.
Anderson often failed to pay his own suppliers for the materials he had shipped. In addition, Anderson usually failed to pay the freight shipping charges. Anderson also admitted that he spent the fraudulently obtained funds on his own personal expenses. On a few occasions Anderson refunded some money to his victims in order to avoid detection of his scheme. Anderson paid these refunds only after the victims contacted, or threatened to contact, federal law enforcement officials. Anderson admitted that he obtained the funds used to pay these refunds by defrauding additional customers.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Shields, Jr., Acting Special Agent-In-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government was represented by Assistant U.S. Attorney Scott A. Verseman.
Cambridge Man Sentenced to 28 Years in Prison for Attempted Murder of A U.S. Marshals Service Task Force OfficerRead the Press Release
Fired Many Shots at Officers Serving Him With an Arrest Warrant, Wounding One Officer
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Tayvon Dobson, age 23, of Cambridge, Maryland, today to 28 years in prison followed by five years of supervised release for attempted murder of a federal officer and using a gun during the attempted murder.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Dorchester County State’s Attorney William H. Jones; Cambridge Police Chief Kenneth W. Malik; U.S. Marshal Johnny Hughes; Dorchester County Sheriff James W. Phillips, Jr.; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.
“Law enforcement officers put their lives on the line every day to protect us from violent criminals,” said U.S. Attorney Rod J. Rosenstein. “I am grateful to the local, state and federal agencies that brought Tayvon Dobson to justice.”
On February 29, 2012, members of the Maryland State Apprehension Team/Capital Area Regional Fugitive Task Force of the U.S. Marshals Service and the Cambridge, Maryland Police Department arrived at a residence divided into individual apartments on Hubbard Street in Cambridge to serve an arrest warrant for Dobson. The arrest warrant charged Dobson with first degree assault and other related charges.
A Task Force detective and a supervisory inspector wore official police vests with bright letters signifying “SHERIFF” or “Police US MARSHAL” across the back, along with a “Task Force” or “Police US Marshal” patch on the front. Shortly after entering one of the apartments, Dobson’s movements were heard across the hall in apartment #1. Officers shouted at Dobson to open the door. Within minutes, gunshots from apartment #1 were directed at law enforcement located outside the residence at their unmarked police vehicles. After the Task Force detective in apartment #2 realized that he could not safely escape that apartment through the hallway, he barricaded the bedroom door with a mattress and dresser.
Shots continued to ring out from apartment #1 as other officers yelled to Dobson to surrender. After several minutes of gunfire, the detective heard Dobson reload a firearm. Dobson began to shoot again. The detective was able to see into the hallway and the front door of apartment #1. Seconds later, the detective saw Dobson leave the apartment and stop in the hallway. Dobson saw the detective no more than 15 feet away and began to fire. The detective fired back while still barricaded in apartment #2. After several volleys of gunfire, the detective felt a sharp pain in his left shoulder, but continued to fire at Dobson. When Dobson left the hallway, the detective saw blood rapidly coming from his wound. The detective broke through the aprtment window, rolled out to the ground and ran to safety. He later underwent surgery.
Dobson continued to shoot at the remaining officers. Four hours after law enforcement first entered the building, Dobson finally surrendered. All of the rooms of Dobson’s residence were riddled with bullet holes. Three firearms were seized, two of which had been used to fire from inside the apartment, as well as a magazine, several rounds of live ammunition and numerous spent shell casings and projectiles.
United States Attorney Rod J. Rosenstein commended the ATF, Dorchester County State’s Attorney’s Office, Capital Area Regional Fugitive Task Force of the United States Marshals Service, Cambridge Police Department, U.S. Marshals Service, Dorchester County Sheriff’s Office and the Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Debra L. Dwyer, who prosecuted the case.
California Woman Pleads Guilty to Conspiracy to Defraud the IRS and Aggravated Identity TheftRead the Press Release
Assistant Attorney General for the Tax Division Kathryn Keneally and U.S. Attorney Melinda Haag for the Northern District of California announced that Noemi Rubio Baez, of Salinas, Calif., pleaded guilty to conspiracy to file false claims for tax refunds with the Internal Revenue Service (IRS) and to aggravated identity theft.
According to the plea agreement, beginning around Feb. 28, 2008 and continuing through April 16, 2012, Baez and a co-conspirator participated in a scheme to obtain and to help others obtain false claims from the IRS by electronically filing in her own name, and in the names of others, false federal income tax returns. Baez and her co-conspirator created false income information in the names and Social Security numbers of multiple individuals, and filed materially false tax returns with the IRS claiming refunds derived from tax credits including the Earned Income Tax Credit, the Additional Child Tax Credit, and the Making Work Pay Credit.
According to court documents, in some instances, the taxpayers requested the returns be prepared, but in others the taxpayers did not provide Baez or her co-conspirator with their personal identification information and were unaware that the returns had been filed in their names. Baez and her co-conspirator filed more than 150 false and fraudulent claims unlawfully seeking more than $400,000 in tax refunds.
At the time of her sentencing, scheduled for Jan. 23, 2014, before U.S. District Judge D. Lowell Jensen, Baez faces a maximum penalty of 12 years in prison, three years of supervised release and a fine of $500,000.
Assistant Attorney General Kathryn Keneally and U.S. Attorney Melinda Haag thanked special agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Charles O’Reilly, Erin S. Mellen and Sonia M. Owens, who are prosecuting the case.
Black Hawk Man Indicted for Tampering, Accessory After the Fact, and False StatementRead the Press Release
United States Attorney Brendan V. Johnson announced that a Black Hawk, South Dakota, man has been indicted by a federal grand jury for allegedly aiding another individual in the theft of property belonging to the South Dakota Army National Guard between September 2012 and March 2013.
Craig Whitford, age 35, was indicted by a federal grand jury on October 22, 2013, for Tampering, Accessory after the Fact, and False Statement.
Whitford appeared before U.S. Magistrate Judge Veronica L. Duffy on October 28, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years of imprisonment and a $250,000 fine for the charge of Tampering, and 5 years of imprisonment and a $250,000 fine for each of the charges of Accessory after the Fact and False Statement. The charges are merely accusations and Whitford is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the South Dakota Army National Guard. Assistant U.S. Attorney Wayne Venhuizen is prosecuting the case.
Whitford was released on bond pending trial. A trial date has been set for December 17, 2013.
Benjamin Quinn McChesney and Lloyd John Romero Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on October 30, 2013, before Senior U.S. District Judge Wm. Fremming Nielsen, BENJAMIN QUINN McCHESNEY, age 36, and LLOYD JOHN ROMERO, age 29, were sentenced.
McCHESNEY was sentenced after having been found guilty of theft of firearms for a licensed dealer, theft of firearms in interstate commerce, and possession of stolen firearms, to a term of:
- ison: 120 months on each count, to run concurrently
- ecial Assessment: $300
- stitution: $40,076.38
- pervised Release: 3 years
ROMERO was sentenced after having been found guilty of possession of stolen firearms and being a felon-in-possession of firearms, to a term of:
- ison: 120 months on each count, to run concurrently
- ecial Assessment: $200
- pervised Release: 3 years
Special Assistant U.S. Attorney Ed Zink prosecuted the case for the United States.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that they will likely serve all of the time imposed by the court. In the federal system, they do have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
Belchertown Man Sentenced for Advance Fee Fraud Scheme That Defrauded 130 VictimsRead the Press Release
BOSTON - A Belchertown, Mass., man was sentenced today in U.S. District Court in Springfield for running an advance fee fraud scheme that defrauded 130 victims of $800,000 and possessing a firearm.
John Sacco, 65, was sentenced by U.S. District Court Judge Michael A. Ponsor to 46 months in prison, three years of supervised release and $86,460 in restitution. In May 2013, Sacco pleaded guilty to conspiracy to commit fraud, mail fraud, and being a felon in possession of a firearm.
From August 2008 to December 2009, Sacco and others ran a national advance fee scheme that defrauded approximately 130 victims of over $800,000. Sacco placed advertisements in national newspapers promising would be investors that they could make hundreds of thousands of dollars a year by working with Sacco’s company, SAC Financial Corp, as brokers of business loans to individuals with poor credit. The individuals who responded to the advertisements were subjected to high pressure sales tactics and false references which convinced them to send Sacco an up-front fee of between $3,500 and $6,900. Thereafter, Sacco strung the victims along through a fictitious loan brokerage process which resulted in no actual loans being made.
Sacco also was sentenced for being a felon in possession of a firearm. In 2001, he was convicted in federal court of defrauding Monson Savings Bank of $236,000. As a convicted felon, Sacco was prohibited from possessing a firearm. In Nov. 2010, a 12-gauge shotgun and 16 shotgun shells were seized from Sacco’s bedroom during the execution of a court ordered search warrant for Sacco’s residence.
United States Attorney Carmen M. Ortiz; Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. The case was prosecuted by Kevin O'Regan of Ortiz’s Springfield Branch Office.
Bank Robber Sentenced to 120 Months in Federal PrisonRead the Press Release
Defendant Threatened to Kill Everyone in the Bank’s Lobby
DALLAS — A Dallas man, who robbed a Chase Bank located on Lemmon Avenue in Dallas in 2011, was sentenced this afternoon. U.S. District Judge Jane J. Boyle sentenced William Clary, 37, to 120 months in federal prison, following his guilty plea in July 2013 to one count of bank robbery. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on August 1, 2011, Clary entered the Chase Bank, located at 4512 Lemmon Avenue in Dallas, approached a teller and presented a note that read, “I want 3600 dollars now! Have a gun. If you scream or signal I will kill you.” Clary then threatened to kill everyone in the lobby if the teller did not comply with his demands. In fear for her life, and the life of others, the teller removed cash from her drawer and gave it to Clary. After Clary received the cash, he departed the bank.
The case was investigated by the FBI and the Dallas Police Department. Assistant U.S. Attorney Keith Robinson prosecuted.
Anchorage Man sentenced to 180 months in prison for conspiracy to ditribute methamphetamine and gun chargesRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court after pleading guilty to conspiracy to distribute methamphetamine and possessing a firearm in furtherance of a drug crime.
Jason Gerald Woods, 36, of Anchorage, Alaska, was sentenced yesterday by U.S. District Court Judge Sharon Gleason to 180 months in prison, to be followed by a five year term of supervised release. Woods previously pled guilty to conspiring to distribute methamphetamine with two other individuals and to possessing a gun in furtherance of his drug trafficking activities.
According to Assistant U.S. Attorney Stephanie Courter, who prosecuted the case, Woods worked with two other individuals to sell more than forty grams of actual methamphetamine over an estimated six month period in 2012. The conspiracy culminated in a deal where the conspirators attempted to trade methamphetamine for fully automatic weapons. During that deal, Woods was armed with a loaded 9mm handgun. In addition to the drug trafficking he engaged in as part of the conspiracy, Woods also sold drugs on his own, selling approximately 146 grams of methamphetamine to an undercover law enforcement officer.
In sentencing Woods, Judge Gleason noted the seriousness of the offense and the need to protect the community from those who engage in the selling of this destructive drug.
Judge Gleason previously sentenced Woods’ co-defendants, Michael Dean Miller and Boaphan Sengchareun, to 120 and 144 months in prison, respectively, for their roles in the conspiracy.
Ms. Loeffler commended the Bureau of Alcohol, Tobacco, Firearms and Explosives for their investigation of this case in the successful prosecution of Woods.