Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 3 September 2013
Bowling Green Man Ordered to Pay $14,000 in RestitutionRead the Press Release
A Bowling Green man was ordered to pay more than $14,000 in restitution and sentenced to three years of supervised release after previously pleading guilty to illegally converting funds from the Department of Veterans Affairs, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Mickael C. Jones, age 36, illegally converted the money between May 2009 and December 2010, according to court documents.
Jones’ aunt died in May 2009. She had been receiving monthly VA surviving-spouse pension benefits. Not knowing of her death, the VA continued to make monthly direct deposits into her bank account, and Jones withdrew the money for his for his own use, according to the court documents.
The investigating agency in this case is the Department of Veterans Affairs, Office of Inspector General. The case is being handled by Assistant United States Attorney Thomas A. Karol.
Ashton Sentenced to Life Plus 10 Years in Federal Court for Kidnapping Resulting in Death, Firearm ChargeRead the Press Release
ST. GEORGE, UT – Paul Ashton, age 34, of St. George, Utah, who pleaded guilty to kidnapping and discharging a firearm in connection with the October 2010 kidnapping and death of Bradley Eitner, was sentenced to life plus 10 years Tuesday morning in U.S. District Court in St. George. U.S. District Judge Ted Stewart imposed the sentence.
Ashton pleaded guilty to the charges in May. Ashton admitted that he aided and abetted in the kidnapping of Eitner on Oct. 31, 2010. Ashton admitted he transported the victim from Utah to Arizona where he was killed. Ashton also admitted he aided and abetted in the use and discharge of a firearm during the kidnapping. Eitner was 43 at the time of his death.
Eitner’s body was discovered March 11, 2011, and an autopsy was performed March 14, 2011, by the Coconino County, Arizona, medical examiner. The medical examiner determined that the cause of Eitner’s death was blunt force head trauma and a single penetrating, gunshot wound of the head. The manner of death was homicide.
As a part of the plea agreement, federal prosecutors recommended that the statutory mandatory minimum sentence of life in prison be imposed for the kidnapping resulting in death count and that the statutory minimum sentence of 10 years be imposed for the firearm count. Federal prosecutors also recommended that the 10-year penalty for the firearm count be served consecutive to the life sentence.
The case was prosecuted by Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office and investigated by the FBI.
Armed Career Criminal Gets 15 Years in Prison After Brandishing Firearm at FBI AgentRead the Press Release
Memphis, TN – Eugene Bernardini, 38, of Olive Branch, MS was sentenced Friday evening by U.S. District Judge Samuel H. Mays to 15 years in federal prison for being a convicted felon in possession of ammunition, announced U.S. Attorney Edward L. Stanton III.
According to facts revealed during the sentencing hearing, on November 23, 2012, a Federal Bureau of Investigation (FBI) Special Agent was riding in a car with a friend and the friend’s 12-year-old son on Hacks Cross Road in Memphis, when their vehicle was struck by Bernardini’s vehicle. The FBI agent recommended to his friend that he pull into a parking lot. The driver and the Special Agent exited the vehicle, at which time Bernardini pulled a pistol and pointed it at the agent’s midsection. The FBI agent immediately took possession of the pistol and ordered Bernardini to the ground. Bernardini refused to comply and advanced toward the agent, saying “you won’t shoot.” The gun failed to fire, and the agent ejected the magazine from the weapon.
Bernardini then pulled a knife and advanced on the agent, who discarded the pistol to have his hands free to defend himself. While holding the agent at knife-point, Bernardini grabbed the pistol from the ground, pointed it at the driver of the vehicle who had come to the agent’s aid and then fled the scene. The police were called to the scene by an employee of a nearby business who witnessed the incident. Though the pistol was never recovered, the ejected magazine and ammunition left on the scene were tagged by Memphis Police Department officers, and Bernardini was arrested later that evening in Olive Branch, Mississippi.
Based on his prior convictions for aggravated robbery, robbery and possession of controlled substances with the intent to distribute, Bernardini was sentenced to the 15-year sentence required by the Armed Career Criminal Act. There is no possibility of parole.
This case was investigated by the Project Safe Neighborhoods Unit. Assistant U.S. Attorney Jennifer Webber represented the government.Alabama Woman Sentenced to Jail for Role in <br /> Identity Theft Tax SchemeRead the Press Release
Angelique Djonret of Montgomery, Ala., was sentenced today to serve two years in prison for her involvement in a million dollar identity theft tax fraud scheme, announced 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. Angelique Djonret pleaded guilty to identity theft on April 19, 2013.
According to court documents, between October 2009 and April 2012, Angelique Djonret’s sister, Antoinette Djonret, orchestrated a tax refund scheme using stolen identities to file over 1,000 false tax returns that fraudulently claimed over $1.7 million in tax refunds. Antoinette Djonret obtained stolen identities from multiple sources, including Alabama state databases. She also established an elaborate network for laundering the refund money. Antoinette Djonret recruited her sister, Angelique, into the conspiracy, whose role was to obtain prepaid debit cards in her name and others’ names for purposes of receiving the fraudulent tax refunds. Antoinette Djonret and her co-conspirators used the cards to obtain the refund proceeds. Angelique Djonret also assisted in the filing of false tax returns using stolen identities. Antoinette Djonret was previously sentenced to 12 years in prison.
Assistant Attorney General Keneally and U.S. Attorney Beck commended the efforts of Special Agents of Internal Revenue Service - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Jason H. Poole and Michael Boteler, and Assistant U.S. Attorney Todd Brown, who prosecuted the case.
Monday 2 September 2013
Former Kansas Man Sentenced on Federal Tax Evasion ChargeRead the Press Release
KANSAS CITY, KAN. – A former Kansas man was ordered Tuesday to pay $54,926 in back taxes and placed on federal probation for three years for tax evasion, U.S. Attorney Barry Grissom
Kent Price, 57, Kingwood, Texas, pleaded guilty to one count of tax evasion. In his plea he admitted the crimes took place while he and co-defendant Donald Doleshal, 62, Driftwood, Texas, lived in Kansas and were partners and owners of Central States Underwater Contracting, Inc., (CSU), Central States Underwater, Limited (CSUL) and Pilecap, Inc. The companies inspected, surveyed and repaired underwater pipelines, piles, piers, docks and bridges.
In tax years 2002, 2003, 2004 and 2005, Price understated his personal taxable income by a total of more than $340,000.
Price also admitted CSU and Pilecap paid personal expenses for Price and Doleshal that were deducted as business expenses on corporate taxes returns and were not reported as personal income. CSU paid for a Corvette and Saab that were drive by Price and Doleshal’s respective spouses.
Doleshal pleaded guilty to one count of tax evasion. He is set for sentencing Oct. 7.
Grissom commended the Internal Revenue Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
Sunday 1 September 2013
Place Title HereRead the Press Release
PLACE TEXT HERE
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Jersey Man Pleads Guilty to Charges of Travelling to Virginia to Have Sex with MinorRead the Press Release
ALEXANDRIA, Va. –Royce DeWeese, 26, of Cherry Hill, New Jersey, pleaded guilty today to charges of travel with intent to engage in illicit sexual conduct with a minor.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Scot R. Rittenberg, Acting Special Agent in Charge, United States Department of Homeland Security, Homeland Security Investigations (HSI), Washington, D.C., made the announcement after DeWeese’s hearing before United States District Court Judge T. S. Ellis, III.
According to court documents and court proceedings today, between March and May 2013, DeWeese communicated over the Internet with an undercover HSI agent. DeWeese made a plan with the undercover agent to travel to Fairfax, Va. in order to engage in sexual activity with the undercover’s supposed 10-year-old daughter. On May 14, 2013, DeWeese did travel from New Jersey to Fairfax, Va., where law enforcement arrested him.
DeWeese pled guilty to one count of travel with intent to engage in illicit sexual conduct, in violation of 18 U.S.C. § 2423(b), and faces a maximum sentence of 30 years in prison at sentencing, which is scheduled for December 6, 2013.
The investigation was conducted by Homeland Security Investigations with assistance from the Northern Virginia-District of Columbia Internet Crimes Against Children Task Force. Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the U.S. Justice Department’s Criminal Division, are prosecuting the case on behalf of the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.usdoj.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 http://pacer.uspci.uscourts.gov.Hacker Sentenced for Breaking into Medical School Application ComputersRead the Press Release
ALEXANDRIA, Va. – Bosung Shim, 24, of Rockville, MD, was sentenced today to three months in prison, followed by seven months in community confinement and three years of supervised release, for unauthorized access of a protected computer. In addition, Shim was required to pay $31,653.24 in restitution to the victim and forfeit the computer equipment used in the crime.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Kathy A. Michalko, Special Agent in Charge for the United States Secret Service’s Washington Field Office, made the announcement after sentencing by United States District Judge T.S. Ellis, III.
Shim pleaded guilty on October 4, 2013 to one count of computer intrusion. In a statement of facts submitted with the plea agreement, Shim admitted that from approximately June 2011 through December 2012, Shim repeatedly attempted to gain unauthorized access to multiple victims’ computers, specifically the University of Michigan and the Association of American Medical Colleges (“AAMC”). In 2012, over a period of six months, Shim attempted to hack into the AAMC’s computers in order to change his Medical College Admissions Test scores. When Shim was unable to hack into the AAMC’s computers himself, he hired a number of other hackers to do it for him, causing tens of thousands of dollars in damage to the AAMC. Shim also perpetrated related fraud against additional victims, including the National Institutes of Health.
This case was investigated by the United States Secret Service. Special Assistant United States Attorney Peter V. Roman, who is on detail from the Justice Department’s Computer Crime and Intellectual Property Section, and Assistant United States Attorney Ryan K. Dickey prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Chesterfield Man Pleads Guilty to Production of Child PornographyRead the Press Release
RICHMOND, Va. – Lawrence Paul Sayers, 32, of Chesterfield County, Va., pleaded guilty today to production of child pornography. Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Kenneth T. Cuccinelli, II, Attorney General of Virginia, made the announcement after the plea was accepted by United States Magistrate Judge David J. Novak.
Sayers was indicted on July 16, 2013, by a federal grand jury on four counts of production of child pornography. Sayers faces a mandatory minimum sentence of fifteen years’ imprisonment up to a maximum of thirty years’ imprisonment when he is sentenced on December 12, 2013, by Senior United States District Court Judge Robert E. Payne.
According to a statement of facts filed with the plea agreement, the Chesterfield County Police Department (“CCPD”) executed a search warrant at Sayers’s residence in Chesterfield County on May 12, 2013. During the search, the CCPD recovered two cellular telephones, which were both locked. The CCPD asked the Federal Bureau of Investigation (“FBI”) for assistance in forensically examining the cellular telephones. The forensic examination revealed approximately forty images and five videos depicting an eight-to-nine-year-old female engaged in sexually explicit conduct with an unidentified adult male. On June 28, 2013, after Sayers was advised of his Miranda rights and waived those rights, FBI agents interviewed him. During the interview, Sayers admitted that he was the unidentified adult male engaged in sexually explicit conduct with the juvenile female depicted in the images and videos recovered by the FBI. Sayers also admitted producing the images and videos with his cellular telephones in his residence in Chesterfield County, Va.
This case was investigated by the Chesterfield County Police Department and the Federal Bureau of Investigation. Special Assistant United States Attorney Thomas K. Johnstone IV is 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.
Friday 30 August 2013
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Frank Piatek, 72, of Elkhart, Indiana pled guilty before District Judge Robert L. Miller Jr. to the felony offense of failure to register as a sex offender.Sentencing has been set for 12/4/2013.This case resulted from an investigation by the US Marshals Service .This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Kelly Ann Norris, 49, of LaPorte, Indiana was sentenced by District Judge Jon E. DeGuilio to 6 months imprisonment, 6 months location monitoring on home detention, 2 years supervised release and $697,000 in restitution after pleading guilty to the felony offense of health care billing fraud.According to documents filed in this case, from 2009 through early 2013, Norris defrauded Indiana Medicaid through fraudulent billing claims.Norris was the owner of Norris Medical Transportation and made claims for reimbursement for transportation services that were never provided.This case was the result of an investigation by the Indiana Attorney General’s Office and the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Brian Edwards, 50, of Fort Wayne, Indiana was sentenced by District Judge Jon E. DeGuilio to 21 months imprisonment, 2 years supervised release and of $400,000 in restitution after pleading guilty to the felony offense of making false statement in connection with a mortgage loan and mortgage insurance.According to documents filed in this case, during 2008 through 2010, Edwards was a licensed loan originator in Fort Wayne, Indiana. Edwards and others involved would sell low-end houses to purchasers unable to qualify for mortgage loans. Thru use of falsified gift letters, Edwards was able to falsely represent borrower assets to qualify individuals for mortgage loans they could not pay.Buyers soon after obtaining the homes could not maintain the locations and the homes went into foreclosure.Edwards knowingly submitted to lenders loan applications containing false representation of borrower assets and phony bank account documentation. The defendant received thousands of dollars from his part of the fraudulent business.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Eugene Jackson, Jr., 33, of Gary, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of possession of a firearm and ammunition by a convicted felon.This charge was filed as a result of an investigation by the ATF HIDTA Task Force and the Hobart Police Department.This case is being prosecuted by Assistant United States Attorney Dean Lanter.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Rick Weatherford, 48, of Ladoga, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 151 months imprisonment and 4 years of supervised release after pleading guilty to the felony offense of conspiracy to possess with the intent to distribute marijuana.The 151 month sentence is to run consecutively with Weatherford’s current sentence.According to documents filed by the government in this case, Weatherford has prior convictions for theft/habitual offender in 1993, murder in 1994 and trafficking with an inmate in 2002. Weatherford orchestrated a large semi-truck load shipment of marijuana that was driven from Texas to Indiana for further distribution.Weatherford took part in this conspiracy while he was incarcerated in the Indiana Department of Corrections with the use of an illegal cellular phone in prison. This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Krystal Puntillo-Raggs, 22, of Hammond, Indiana, was sentenced by Senior District Judge Rudy Lozano to 12 months of probation after pleading guilty to the felony offense of passing counterfeit obligations.According to documents filed in this case, Puntillo-Raggs assisted in the illegal passing of counterfeit obligations at her place of employment in her capacity as a cashier.Her co-defendants would purchase items at her register and give her what she knew to be counterfeit bills as payment.They would later return many of the purchased items in exchange for genuine cash and things of value.This case was the result of an investigation by the United States Secret Service.This case was prosecuted by Assistant United States Attorney Randall Stewart.
Daniel Loy, 32, of South Haven, Indiana, was sentenced by District Judge Joseph Van Bokkelen to the custody of the Bureau of Prisons for a term of 30 months with 3 years of supervised release after pleading guilty to the felony offense of distribution of cocaine.According to documents filed in this case, Loy, in distributing cocaine on 2 occasions, sold approximately 115 grams.Loy has an extensive criminal history that includes a felony conviction and 5 misdemeanor convictions. This case was the result of an investigation by the Federal Bureau of Investigation GRIT Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Jason Rossiter, 30, of Lake Village, Indiana, a defendant in the case US v Humphrey et al., was sentenced by Senior District Judge Rudy Lozano to the custody of the Bureau Of Prisons for a term of 60 months with 3 years of supervised release after pleading guilty to the felony offense of conspiracy to possess with the intent to distribute heroin.According to documents filed in this case, Rossiter was charged along with eight others with participation in a heroin ring operating in the Newton County area. This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorneys Jacqueline Jacobs and Jennifer Chang-Adiga.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Gelacio Martinez, 36, of Sturgis,Michigan, pled guilty before District Judge Roger B. Cosbey to the felony offense of using a communication facility to facilitate a conspiracy to distribute and possession with the intent to distribute a controlled substance.Sentencing has not been set.This case resulted from an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Shawn Hagler, 35, of Fort Wayne, Indiana pled guilty before District Judge Roger B. Cosbey to the felony offense of armed bank robbery.This case resulted from an investigation by the Federal Bureau of Investigation.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Trey Jackson, 35, of Fort Wayne, Indiana pled guilty before District Judge Roger B. Cosbey to the felony offenses of armed bank robbery and with brandishing and using a firearm during and in relation to a crime of violence.Sentencing has not been set.This case resulted from an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Anthony Geller.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Nicole Sprankles, 40, of Bluffton, Indiana was sentenced by District Judge Theresa L. Springmann to serve 5 months imprisonment and 1 year supervised release after pleading guilty to the felony offense of making a false statement in connection with the acquisition of a firearm.According to documents filed in this case, Sprankles purchased a .40 caliber Glock pistol, model 22 from Parlor City Pawn in Bluffton and lied regarding the true identity of a firearm purchaser. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Harry Esterline, 75, of Fort Wayne, Indiana was sentenced by District Judge Theresa L. Springmann to serve 2 days imprisonment (with credit for time served) and 5 years supervised release after pleading guilty to the felony offense of possession of materials depicting minors engaging in sexually explicit conduct.According to documents filed in this case, Esterline utilized the file sharing software “Limewire” to download video files from the Internet.The files depicted scenes of prepubescent females engaged in sexual activity with adult males.Esterline’s computer was seized and child pornography video files were found on the hard drive. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Alex White, 48, of Fort Wayne, Indiana was sentenced by District Judge Theresa L. Springmann to serve 188 months imprisonment, 3 years of supervised release and $877 in restitution after pleading guilty to the felony offense of robbery with a dangerous weapon.According to documents filed in this case, in October 2012, White entered a Wells Fargo bank, threatened a bank teller and demanded money. White fled the scene with the stolen money.He was arrested several days later due to video footage from the robbery.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Lovita Morris-King.
Two Attorneys Charged in Connection with Rothstein Ponzi SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the arrest of Douglas L. Bates, 54, of Parkland, and Christina M. Kitterman, 38, of Deerfield Beach. Arraignment for Bates is scheduled for September 4, 2013, and arraignment for Kitterman is scheduled for September 6, 2013, both before U.S. Magistrate Judge James M. Hopkins.
According to two indictments unsealed in court earlier today, Bates was charged with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and wire fraud, in violation of Title 18, United States Code, Section 1343 (three counts). Kitterman was charged with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349. Each of the aforesaid counts is punishable up to twenty years’ imprisonment and a fine of $250,000.00.
U.S. Attorney Wifredo A. Ferrer said, “As I have previously stated, the breadth, scope and sheer complexity of Rothstein’s $1.2 billion Ponzi scheme is mind-boggling. The success of such a large-scale scheme depended on the complicity of Rothstein’s colleagues and associates, like Douglas Bates and Christina Kitterman. Bates and Kitterman, both attorneys, are the fifteenth and sixteenth individuals to face criminal charges in connection with this complex financial fraud.”
Acting SAC Michael J. De Palma stated, “Complex financial schemes such as the one orchestrated by Scott Rothstein do not occur in a vacuum. It is sad when you see two attorneys violate the public’s trust by using their law licenses to perpetrate a massive fraud. Together with our law enforcement partners, IRS-CI is committed to aggressively investigating and bringing to justice those who knowingly assist in perpetrating investment scams.”
“The FBI tirelessly pursues those who defraud investors,” said Michael B. Steinbach, Special Agent in Charge, FBI, Miami. “As attorneys, Bates and Kitterman took an oath to act with fairness and integrity but chose to violate that oath to assist Rothstein with perpetrating his massive fraud scheme.”
The acts set forth in the charging documents were all in furtherance of a “Ponzi” scheme involving the sale of purported confidential settlement agreements in sexual harassment and/or whistle blower cases which were purportedly handled by attorneys at the former Ft. Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).
The indictment against Douglas Bates charges that, while he was a partner in the Law Offices of Koppel and Bates, located in Plantation, Florida, he assisted Scott W. Rothstein in defrauding certain clients of RRA by creating a fraudulent and fictitious settlement letter purporting to resolve certain civil litigation to the benefit of RRA’s clients when, in fact, Bates did not represent the alleged party and no such litigation had ever been instituted. Additionally, the indictment charges that Bates drafted false and fraudulent opinion letters claiming to represent an investment group which had a business plan to invest in the confidential settlements which formed the basis for the Ponzi scheme when, in fact, he did not, and claiming that he represented a plaintiff who had entered into one of the confidential settlement agreements when, in fact, he did not. The indictment further alleges that Bates assisted Rothstein by arranging to have representatives of an investment group falsely informed that numerous legal cases were referred by Koppel & Bates to RRA when, in fact, they were not.
The indictment against Christina Kitterman charges that, during the course of the Ponzi scheme, and while she was employed as an attorney at RRA, Kitterman falsely posed as the head of the Ft. Lauderdale office of the Florida Bar Association during a meeting with certain investors and falsely claimed that certain of the RRA bank accounts had been frozen in connection with a pending Bar investigation of Rothstein. According to the indictment, this was done in order to explain to the investors the reason why certain payments due to them had not been made.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, Jeffrey N. Kaplan and Evelyn B. Sheehan.
An Indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tonawanda Man Indicted on Drug ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a grand jury has handed down a two count indictment charging Peter Viera, 20, of Tonawanda, N.Y., with conspiracy to possess with intent to distribute, and to import, methylone, a Schedule I controlled substance. The charges carry a maximum penalty of 20 years in prison, a fine of $1,000,000, or both.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that according to the indictment and the criminal complaint that preceded it, between October 21, 2011, and May 31, 2013, the defendant conspired with others to import from China, obtain, and sell methylone in Western New York. On May 31, 2013, Viera was parked in a car across from the LaSalle Post Office in Niagara Falls, N.Y. observing a co-conspirator pick up a package from the Post Office, which had been sent from China. Unbeknownst to Viera and his co-conspirators -- the package was intercepted two days prior by U.S. Postal inspectors and found to contain approximately one kilogram of methylone.
The indictment is the result of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the United States Postal Inspection Service, under the direction of Kevin Niland, Inspector in Charge, Boston Division,
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Three Former Broker-dealer Employees Plead Guilty in Manhattan Federal Court to Bribery of Foreign Officials, Money Laundering and Conspiracy to Obstruct JusticeRead the Press Release
Three employees of a New York-based U.S. broker-dealer have pleaded guilty for their roles in bribery schemes involving two state economic development banks in Venezuela.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York and Assistant Director in Charge George Venizelos of the New York Office of the FBI made the announcement.
Ernesto Lujan, Jose Alejandro Hurtado and Tomas Alberto Clarke Bethancourt pleaded guilty in New York federal court to conspiring to violate the Foreign Corrupt Practices Act (FCPA), to violate the Travel Act and to commit money laundering, as well as substantive counts of these offenses. These charges relate to a scheme to bribe a foreign official named Maria de los Angeles Gonzalez de Hernandez at Banco de Desarrollo Económico y Social de Venezuela (BANDES), a state economic development bank in Venezuela, in exchange for receiving trading business from BANDES. Lujan, Hurtado and Clarke each also pleaded guilty to an additional charge of conspiring to violate the FCPA in connection with a similar scheme to bribe a foreign official employed by Banfoandes (the “Banfoandes Foreign Official”), another state economic development bank in Venezuela, and to conspiring to obstruct an examination by the U.S. Securities and Exchange Commission (SEC) of the New York-based broker-dealer (the “Broker-Dealer”) where all three defendants had worked, to conceal the true facts of the Broker-Dealer’s relationship with BANDES.
Lujan, 50, and Clarke, 43, entered their guilty pleas yesterday before U.S. Magistrate Judge James C. Francis IV, and Hurtado, 38, pleaded guilty today, also before Judge Francis. The men each pleaded guilty to the same six offenses and face a maximum penalty of five years in prison on each count except money laundering, which carries a maximum penalty of 20 years in prison. Sentencing for Lujan and Clarke is scheduled for Feb. 11, 2014, before U.S. District Judge Paul G. Gardephe. Hurtado is scheduled for sentencing before U.S. District Judge Harold Baer Jr. on March 6, 2014.
According to the informations filed against Lujan, Hurtado and Clarke this week, the criminal complaints previously filed, and statements made during the plea proceedings, Lujan, Clarke and Hurtado worked or were associated with the Broker-Dealer, principally through its Miami offices. In 2008, the Broker-Dealer established a group called the Global Markets Group, which included Lujan, Clarke and Hurtado, and which offered fixed income trading services to institutional clients.
One of the Broker-Dealer’s clients was BANDES, which operated under the direction of the Venezuelan Ministry of Finance. The Venezuelan government had a majority ownership interest in BANDES and provided it with substantial funding. Gonzalez was an official at BANDES and oversaw the development bank’s overseas trading activity. At her direction, BANDES conducted substantial trading through the Broker-Dealer. Most of the trades executed by the Broker-Dealer on behalf of BANDES involved fixed-income investments for which the Broker-Dealer charged the bank a mark-up on purchases and a mark-down on sales.
The Broker-Dealer also conducted business with Banfoandes, another state development bank in Venezuela that, along with its 2009 successor Banco Bicentenario, operated under the direction of the Venezuelan Ministry of Finance. Banfoandes acted as a financial agent of the Venezuelan government in order to promote economic and social development by, among other things, offering credit to low-income Venezuelans. The Banfoandes Foreign Official was responsible for some of Banfoandes’s foreign investments.
Court records state that from early 2009 through 2012, Lujan, Clarke and Hurtado participated in a bribery scheme in which Gonzalez allegedly directed trading business she controlled at BANDES to the Broker-Dealer, and in return, agents and employees of the Broker-Dealer split the revenue the Broker-Dealer generated from this trading business with Gonzalez. During this time period, the Broker-Dealer generated over $60 million in mark-ups and mark-downs from trades with BANDES. Agents and employees of the Broker-Dealer, including Lujan, Clarke and Hurtado, devised a split with Gonzalez of the commissions paid by BANDES to the Broker-Dealer. Emails, account records and other documents collected from the Broker-Dealer and other sources reveal that Gonzalez allegedly received a substantial share of the revenue generated by the Broker-Dealer for BANDES-related trades. Specifically, Gonzalez allegedly received kickbacks and payments from Broker-Dealer agents and employees that were frequently in six-figure amounts.
To further conceal the scheme, the kickbacks to Gonzalez were often paid using intermediary corporations and offshore accounts that she held in Switzerland, among other places. For instance, Lujan, Clarke and Hurtado used accounts they controlled in Switzerland to transfer funds to an account Gonzalez allegedly controlled in Switzerland. Additionally, Hurtado and his spouse received substantial compensation from the Broker-Dealer, portions of which Hurtado transferred to an account allegedly held by Gonzalez in Miami and to an account held by an associate of Gonzalez in Switzerland. Hurtado also sought and allegedly received reimbursement from Gonzalez for the U.S. income taxes he had paid on money that he used to make kickback payments to Gonzalez. Lujan and Clarke also derived substantial profit from their roles in the bribery scheme.
According to court records, beginning in or about November 2010, the SEC commenced a periodic examination of the Broker-Dealer, and from November 2010 through March 2011 the SEC’s examination staff made several visits to the Broker-Dealer’s offices in Manhattan. In early 2011, Lujan, Clarke and Hurtado discussed their concern that the SEC was examining the Broker-Dealer’s relationship with BANDES and asking questions regarding certain emails and other information that the SEC examination staff had discovered. Lujan, Clarke and Hurtado agreed that they would take steps to conceal the true facts of the Broker-Dealer’s relationship with BANDES, including deleting emails. Lujan, Clarke and Hurtado then, in fact, deleted emails. Additionally as part of this effort to obstruct the SEC examination, Clarke lied to SEC examination staff in response to an interview question about his relationship to an individual who had received purported foreign associate payments relating to BANDES.In a related scheme, from 2008 through mid-2009, Lujan, Clarke and Hurtado paid bribes to the Banfoandes Foreign Official, who, in exchange, directed Banfoandes trading business to the Broker-Dealer.
Gonzalez was charged in a criminal complaint and arrested on May 3, 2013, in connection with the BANDES bribery scheme. The charges against Gonzalez are merely accusations, and she is presumed innocent unless and until proven guilty.
This ongoing investigation is being conducted by the FBI, with assistance from the SEC and the Justice Department’s Office of International Affairs.
Assistant Chief James Koukios and Trial Attorneys Maria Gonzalez Calvet and Aisling O’Shea of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Harry A. Chernoff and Jason H. Cowley of the Southern District of New York’s Securities and Commodities Fraud Task Force are in charge of the prosecution. Assistant U.S. Attorney Carolina Fornos is responsible for the forfeiture aspects of the case.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.Three Former Broker-Dealer Employees Plead Guilty in Manhattan Federal Court to Bribery of Foreign Officials, Money Laundering, and Conspiracy to Obstruct JusticeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Mythili Raman, the Acting Assistant Attorney General for the Criminal Division of the United States Department of Justice (“DOJ”), and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that ERNESTO LUJAN, JOSE ALEJANDRO HURTADO, and TOMAS ALBERTO CLARKE BETHANCOURT pled guilty in Manhattan federal court to conspiring to violate the Foreign Corrupt Practices Act (the “FCPA”), to violate the Travel Act, and to commit money laundering, as well as substantive counts of these offenses. These charges relate to a scheme to bribe a foreign official named Maria de los Angeles Gonzalez de Hernandez (“Gonzalez”) at Banco de Desarrollo Económico y Social de Venezuela (“BANDES”), a state economic development bank in Venezuela, in exchange for receiving trading business from BANDES. LUJAN, HURTADO, and CLARKE each also pled guilty to an additional charge of conspiring to violate the FCPA in connection with a similar scheme to bribe a foreign official employed by Banfoandes (the “Banfoandes Foreign Official”), another state economic development bank in Venezuela, and to conspiring to obstruct an examination by the U.S. Securities and Exchange Commission (“SEC”) of the New York-based broker-dealer (the “Broker-Dealer”) where all three defendants had worked, to conceal the true facts of the Broker-Dealer’s relationship with BANDES. LUJAN and CLARKE entered their guilty pleas yesterday before U.S. Magistrate Judge James C. Francis, IV, and HURTADO pled guilty today, also before Judge Francis.
According to the Informations against LUJAN, HURTADO, and CLARKE filed this week, the allegations in the previously filed criminal Complaints, statements made during the plea proceedings, and other documents filed in Manhattan federal court:
At all times relevant to the charges, LUJAN, CLARKE, and HURTADO worked or were associated with the Broker-Dealer, principally through its Miami offices. In 2008, the Broker-Dealer established a group called the Global Markets Group, which included LUJAN, CLARKE, and HURTADO, and which offered fixed income trading services to institutional clients.
One of the Broker-Dealer’s clients was BANDES, which operated under the direction of the Venezuelan Ministry of Finance. The Venezuelan government had a majority ownership interest in BANDES and provided it with substantial funding. Gonzalez was an official at BANDES and oversaw the development bank’s overseas trading activity. At her direction, BANDES conducted substantial trading through the Broker-Dealer. Most of the trades executed by the Broker-Dealer on behalf of BANDES involved fixed income investments for which the Broker-Dealer charged the bank a mark-up on purchases and a mark-down on sales.
The Broker-Dealer also conducted business with Banfoandes, another state development bank in Venezuela that, along with its 2009 successor, Banco Bicentenario, operated under the direction of the Venezuelan Ministry of Finance. Banfoandes acted as a financial agent of the Venezuelan government in order to promote economic and social development by, among other things, offering credit to low-income Venezuelans. The Banfoandes Foreign Official was responsible for some of Banfoandes’s foreign investments.
The Defendants’ Bribery Schemes
From early 2009 through 2012, LUJAN, CLARKE, and HURTADO, participated in a bribery scheme in which Gonzalez directed trading business she controlled at BANDES to the Broker-Dealer, and in return, agents and employees of the Broker-Dealer split the revenue the Broker-Dealer generated from this trading business with Gonzalez. During this time period, the Broker-Dealer generated over $60 million in mark-ups and mark-downs from trades with BANDES. Agents and employees of the Broker-Dealer, including LUJAN, CLARKE and HURTADO, devised a split with Gonzalez of the commissions paid by BANDES to the Broker-Dealer. Emails, account records, and other documents collected from the Broker-Dealer and other sources reveal that Gonzalez received a substantial share of the revenue generated by the Broker-Dealer for BANDES-related trades. Specifically, Gonzalez received millions in kickback payments from Broker-Dealer agents and employees.
To further conceal the scheme, the kickbacks to Gonzalez were often paid using intermediary corporations and offshore accounts that she held in Switzerland, among other places. For instance, LUJAN, CLARKE, and HURTADO used accounts they controlled in Switzerland to transfer funds to an account Gonzalez controlled in Switzerland. Additionally, HURTADO and his spouse received substantial compensation from the Broker-Dealer, portions of which HURTADO transferred to an account held by Gonzalez in Miami and to an account held by an associate of Gonzalez in Switzerland. HURTADO also sought and received reimbursement from Gonzalez for the U.S. income taxes he had paid on money that he used to make kickback payments to Gonzalez. LUJAN and CLARKE also derived substantial profit from their roles in the bribery scheme.
The Defendants’ Efforts to Obstruct the SEC Examination
Finally, beginning in or about November 2010, the SEC commenced a periodic examination of the Broker-Dealer, and from November 2010 through March 2011 the SEC’s examination staff made several visits to the Broker-Dealer’s offices in Manhattan. In early 2011, LUJAN, CLARKE, and HURTADO discussed their concern that the SEC was examining the Broker-Dealer’s relationship with BANDES and asking questions regarding certain emails and other information that the SEC examination staff had discovered. LUJAN, CLARKE, and HURTADO agreed that they would take steps to conceal the true facts of the Broker-Dealer’s relationship with BANDES, including deleting emails. LUJAN, CLARKE, and HURTADO then, in fact, deleted emails. Additionally as part of this effort to obstruct the SEC examination, CLARKE lied to SEC examination staff in response to an interview question about his relationship to an individual who had received purported foreign associate payments relating to BANDES.
In a related scheme, from 2008 through mid-2009, LUJAN, CLARKE, and HURTADO paid bribes to the Banfoandes Foreign Official, who, in exchange, directed Banfoandes trading business to the Broker-Dealer.
LUJAN, 50, CLARKE, 43, and HURTADO, 38, each pled guilty to the same six offenses. A chart containing the charges and the maximum penalties they carry is attached. Sentencing for Lujan and Clarke is scheduled for February 11, 2014, before U.S. District Judge Paul G. Gardephe. Hurtado is scheduled for sentencing before U.S. District Judge Harold Baer, Jr. on March 6, 2014.
Gonzalez was charged in a criminal Complaint and arrested on May 3, 2013, in connection with the BANDES bribery scheme. The charges against Gonzalez are merely accusations and she is presumed innocent unless and until proven guilty.
Mr. Bharara praised DOJ's Criminal Division’s Fraud Section and Office of International Affairs and the FBI for their work in the investigation. He also thanked the SEC for its assistance in this case and noted that the investigation is continuing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force and the Fraud Section of the DOJ Criminal Division. Assistant United States Attorneys Harry A. Chernoff and Jason H. Cowley, and Fraud Section Assistant Chief James Koukios and Trial Attorney Maria Gonzalez Calvet are in charge of the prosecution. Assistant United States Attorney Carolina Fornos is responsible for the forfeiture aspects of the case.
Additional information about the Justice Department’s FCPA enforcement efforts can be
found at www.justice.gov/criminal/fraud/fcpa.
Click here to view chart(s)
U.S. v. Ernesto Lujan Information
U.S. v. Tomas Alberto Bethancourt Clarke Information
U.S. v. Jose Alejandro Hurtado InformationTexas Man Convicted of Falsifying Tax ReturnsRead the Press Release
HOUSTON – Cedric Keith Oliphant has entered a plea of guilty for falsifying client returns, United States Attorney Kenneth Magidson announced today along with Bernard Butler, acting special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI).
“Tax return preparers have a duty to their clients to prepare accurate tax returns that comply with the tax laws,” stated Butler. “IRS-CI endeavors to protect revenue by identifying, investigating and recommending prosecution of abusive return preparers. Always remember, it is your responsibility to know what is on your income tax return because ultimately, you are responsible for all the information filed with the IRS.”
According to the factual basis in support of the plea, Oliphant claimed false deductions for local clients that fraudulently increased tax refunds by approximately $325,000 for tax years 2006 through 2008. The tax service establishment he owned closed in March 2012 following her arrest.
On or about Feb. 6, 2008, Oliphant knowingly prepared and caused to be filed with the IRS a false 2007 U.S. Individual Income Tax Return – Form 1040 for a taxpayer and fee-paying client in need of tax return preparation services. Without consent of the taxpayer, Oliphant included certain materially false deductions with the intention of generating an excessive federal income tax refund and causing a direct pecuniary harm of several thousand dollars to the IRS.
Specifically, during his plea hearing today, Oliphant admitted he knowingly and willfully included materially false deductions for gifts to charity and for unreimbursed business expenses a client’s 2007 tax return. This tax return alone caused a loss to the U.S. Treasury in the approximate amount of $11,261.
Oliphant also admitted he had knowingly and willfully prepared and filed dozens more false federal income tax returns for other clients for tax years 2006 through 2008 that generated excessive refunds and cause aggregate losses to the IRS of totaling approximately $325,000.
The plea agreement requires Oliphant make full restitution to the IRS for the fraudulent refunds.
U.S. District Judge Melinda Harmon, who accepted the guilty plea, has set a sentencing date of Nov. 22, 2013, at which time Oliphant faces up to three years in prison and $250,000 fine. Oliphant has been permitted to remain on bond until that hearing.
The investigation leading to these charges was conducted by IRS-CI. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Rochester Attorney Pleads Guilty to Filing False Tax ReturnsRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Salvatore J. Marcera, Jr., 52, of Rochester, N.Y., pleaded guilty before U.S. District Judge Frank P. Geraci, Jr., to four felony charges of filing a false personal income tax return. Each count carries a maximum penalty of three years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Frank H. Sherman, who is handling the case, stated that the defendant, a sole practitioner attorney in Rochester, acknowledged that the Government's proof would be sufficient to obtain a conviction on each of the four counts charging Marcera with filing a false tax return for tax years 2004 through 2007. The defendant understated the gross receipts of his law practice on the Schedule C of each return. The total of the unreported gross receipts for the four tax years as shown by the Government's proffered evidence was approximately $356,353. The Government offered evidence that, if the true gross receipts had been reported by defendant for each of the years in question, the total for the four years of additional tax due and owing would be $104,074.00.
The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Toni Weirauch, New York Field Office.
Sentencing is scheduled for January 7, 2014, at 3:30 p.m. before Judge Geraci.Registered Sex Offender Sentenced to Ten Years in Federal Prison for Possessing Child PornographyRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Kyle Splattstoesser, age 43, of Ritzville, Washington, was sentenced after having previously pleaded guilty on May 14, 2013 to Possession of Child Pornography. Senior United States District Court Judge Robert Whaley sentenced Splattstoesser to a ten-year term of imprisonment, to be followed by a life-term of court supervision after he is released from Federal prison. Splattstoesser has a prior federal conviction in 2006 for Possession of Child Pornography and is a registered sex offender.
According to information disclosed during the court proceedings, in March of 2010, the Federal Bureau of Investigation and Grant County Sheriff's Office conducted an investigation of a mother using her children to produce images of child pornography. The mother, Pamela Ortega, plead guilty to three counts of Rape of a Minor and was sentenced in Washington State to 300 months imprisonment. As a result of the investigation into Ortega, law enforcement determined that one of the individuals she was communicating with about child pornography images was Kyle Splattstoesser. On April 29, 2011, the FBI executed a search warrant at Splattstoesser's residence and ultimately located a laptop computer that contained images of child pornography.
Michael C. Ormsby stated: "The United States Attorney's Office in the Eastern District of Washington continues to prosecute aggressively and seek appropriate punishment for child pornography crimes. The successful prosecution of this case is the direct result of the strong working partnership between Federal and local law enforcement officers in the Eastern District of Washington."
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative ("PSC") has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue child victims;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted the Federal Bureau of Investigation and the Grant County Sheriff's Office. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
CR-12-0137-RHW
Racine Man Indicted in Federal Court with Illegally Making and Selling FirearmsRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin announced that on August 27, 2013, a federal grand jury indicted Donald W. Rees (age: 42) of Racine, Wisconsin for illegally making, possessing, and transferring homemade pipe guns. Rees was charged with two counts of illegally making firearms in violation of 26 U.S.C. section 5861(f), two counts of possessing an unregistered firearm in violation of section 5861(d), and two counts of illegally transferring a firearm in violation of section 5861(e). Each of the six counts charged carries a maximum possible imprisonment for not more than ten years, a fine of not more than $250,000, or both, plus a mandatory $100 special assessment and a term of supervised release not to exceed three years.
The indictment alleges that Rees made seven homemade pipe guns and sold these guns on two separate occasions. The firearms were described as destructive devices in the form of slam-type weapons, each consisting of two sections of metal pipe, one of which would slide into the other, with the wider pipe having an end cap through which a metal screw extends into the pipe to act as a firing pin to contact the primer in order to expel the ammunition out of the weapon when the pipes are pushed together.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and will be prosecuted by Assistant United States Attorney Mel S. Johnson.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Plainview, Texas, Man Faces up to 30 Years in Federal Prison for Producing Child PornographyRead the Press Release
LUBBOCK, Texas—Jose Francisco Madrigal, 43, of Plainview, Texas, appeared today before U.S. District Judge Sam R. Cummings and pleaded guilty to one count of production of child pornography. Madrigal, who is on bond, faces a statutory penalty of not less than 15 years or more than 30 years in federal prison, a $250,000 fine and up to a lifetime of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In October 2012, according to plea documents filed in the case, Madrigal, using a digital camera and aiming the camera through a hole in a bathroom wall, took sexually explicit videos of a female child, while the child was taking a shower.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Plainview Police Department. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Philadelphia Man Found Guilty of Involuntary Manslaughter in Death of 13 Year Old BoyRead the Press Release
Jackson, Miss – Christopher Thompson, Jr., 24, of Philadelphia, Mississippi, a member of the Mississippi Band of Choctaw Indians, was found guilty today of involuntary manslaughter in the death of a 13-year old Choctaw male in the Bogue Chitto community of the Choctaw Indian reservation in Kemper County, announced U.S. Attorney Gregory K. Davis. The criminal trial was held before U.S. District Judge Daniel P. Jordan, III, in Jackson.
Thompson was indicted on June 5, 2012 for involuntary manslaughter committed in three different ways: driving recklessly, driving drunk, and driving in a grossly negligent manner. The jury found him guilty of having committed the crime in all three manners.
On July 3, 2011, at approximately 10:30 a.m., Thompson, after having been drinking almost continuously for 12 hours, Thompson drove himself and his girlfriend down Sonny Jones Road in the Bogue Chitto community. As he was driving, he veered across the center line, into the oncoming lane, and hit a 13-year old Choctaw male who was riding his bicycle. After striking the child, Thompson veered off the shoulder of the road and the vehicle rolled over. Emergency personnel responded to the scene and the 13-year old was taken to the hospital, where he later died from his injuries. Thompson was also taken to the hospital, where it was determined that his blood alcohol level was .21% - over twice the legal limit.
Thompson is scheduled to be sentenced on November 19, 2013 at 9:00 a.m. and faces a maximum penalty of eight years in prison and a $250,000 fine.
This case was investigated by the Choctaw Police Department, Neshoba County Sheriff’s Office, East Neshoba Volunteer Fire Department, Mississippi Department of Public Safety, Mississippi Highway Patrol, Mississippi Bureau of Investigation, and the Federal Bureau of Investigation. Assistant United States Attorneys Patrick Lemon and Mike Hurst prosecuted the case.
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Pennsylvania Man Pleads Guilty to Production of Child PornographyRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Randall Lose, 36, of Howard, Pennsylvania, pleaded guilty before U.S. District Judge Richard J. Arcara, to production of child pornography. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum penalty of 30 years, a fine of $250,000, or both.
Assistant U.S. Attorney Maura K. O'Donnell, who is handling the case, stated that the investigation was initiated by the City of Tonawanda Police Department after receiving a complaint from the parent of a minor victim. The information was then forwarded to the FBI. During the investigation, it was determined that the defendant, who resided in Pennsylvania, used the Internet to communicate with a minor female living in Western New York. Lose instructed her to engage in various sexual acts, on camera, which he then viewed via Skype and recorded.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Steven L. Lanser and the City of Tonawanda Police Department, under the direction of Chief William Strassburg.
Sentencing is scheduled for January 27, 2014, at 12:30 p.m. before Judge Arcara.Owner of “Mail Drop” Convicted of Manufacturing and Selling Counterfeit PostageRead the Press Release
HOUSTON – Susan Spiegel, the former owner of Postal Connections of America, has pleaded guilty to one count of mail fraud, United States Attorney Kenneth Magidson announced today along with Inspector in Charge Robert Wemyss, of the U.S. Postal Inspection Service (USPIS). Spiegel, 70, of Tomball, admitted she caused a loss to U.S. Postal Service (USPS) of more than $39,000.
Postal Connections was a commercial mail receiving agency, or “mail drop,” located in Houston, which was a private business that acts as an agent for receiving and delivering the recipient’s mail. Spiegel had primary responsibility for the daily operations of the business, to include online stamp purchases.
After examining nearly 2000 individual pieces of outgoing mail, investigators determined Spiegel purchased legitimate postage using her company’s Stamps.com account, duplicated it and applied the counterfeit postage to outgoing mail - which was ultimately delivered by the USPS.
Used and re-used sheets of online stamps and more than 1,000 individual counterfeit postage stamps of various denominations were seized from Spiegel’s business. The oldest duplicated stamp dated back to an original print date in 2009. Over time, the investigation revealed a drastic decline in legitimate postage purchased by Postal Connections from Stamps.com.
“The health and success of the Postal Service depends upon strong and aggressive revenue protection,” said Wemyss. “We will continue to identify and pursue dishonest mailers who deliberately avoid proper payment of postage.”U.S. District Judge Lynn Hughes, who accepted the guilty plea, has set sentencing for Sept. 23, 2013. At that time, she faces a maximum punishment of 20 years imprisonment and/or a $250,000 fine. In addition, Spiegel faces a forfeiture money judgment in the amount of $39,256.92 for losses incurred by the USPS.
This case was investigated by the USPIS and is being prosecuted by Special Assistant United States Attorney Tammie Y. Moore.
Orleans County Man Indicted on Drug and Gun ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a grand jury has handed down a four count indictment charging Allen M. Young, 37, of Barker, N.Y., with possession with intent to distribute and distribution of methylone, a Schedule I controlled substance, conspiracy, possession with intent to distribute marijuana, and being a felon in possession of firearms and ammunition. The charges carry a maximum penalty of 20 years in prison, a fine of $1,000,000, or both.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that according to the indictment and the criminal complaint that preceded it, between December 1, 2012, and February 14, 2013, the defendant conspired with others to obtain and sell methylone in Western New York. On December 13, 2012, while members of the Orleans County Major Felony Crime Task Force were attempting to execute a search warrant on Young and his car, he fled at a high rate of speed before crashing the car in Ridgeway, N.Y. The defendant fled the scene on foot, and nine rounds of .50 caliber ammunition were found in the car. Two days later, a backpack, later identified as Young's and containing 1.8 pounds of methylone, was found abandoned in the woods near the scene of the crash.
Young was subsequently arrested in Erie, Pennsylvania, on February 14, 2013, and has been in custody ever since. The defendant, who was convicted of a felony offense in Orleans County in 2009, was also charged with possessing seven firearms and the aforementioned .50 caliber ammunition between January 1, 2011, and April 5, 2013, and with possession of marijuana with intent to distribute, also on December 13, 2012.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The indictment is the result of an investigation on the part of the Orleans County Major Felony Crime Task Force, under the direction of District Attorney Joseph Cardone and Sheriff Scott D. Hess, and the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division.New Orleans Woman, Renata Foreman, Charged with Financial Aid FraudRead the Press Release
FOREMAN, RENATA R., age 33, a resident of New Orleans, was charged in a three count bill of information filed today with theft of government funds, mail fraud and identity theft related to her scheme to defraud the U.S. Department of Education, announced U.S. Attorney Dana J. Boente.
According to the Bill of Information, FOREMAN fraudulently obtained financial aid funds in the amount of $191,617 from several Louisiana and online universities. As part of her scheme to defraud, FOREMAN applied for admission and financial aid in her name and in the name of nine individuals without their knowledge or consent. By falsifying high school graduation information and supplying forged transcripts, FOREMAN induced universities to admit her and others based on false information. FOREMAN also misrepresented her income and other applicant’s income in order to maximize the federal financial aid she illegally received.
If convicted, FOREMAN faces up to 10 years in prison and a fine of $250,000 as to Count 1; 20 years in prison and a fine of $250,000 as to Count 2; and 15 years in prison and a fine of $250,000 as to Count 3. FOREMAN also faces three (3) years of supervised release following any term of imprisonment, and a $300 special assessment.
U.S. Attorney Dana J. Boente reiterated that the bill of information is merely a charge and the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the U.S. Department of Education-Office of Inspector General, and U.S. Postal Inspection Service. This case is being prosecuted by Assistant U.S. Attorney Julia K. Evans.(Download Bill of Information )
New Jersey Truck Driver Sentenced for Drug TraffickingRead the Press Release
LAREDO, Texas– Rigoberto Torres, 39, a legal permanent resident from New Jersey, has been ordered to federal prison as a result of his conviction of possession with intent to distribute more than 100 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. Torres pleaded guilty May 13, 2013.
Today, Senior U.S. Senior District Judge George P. Kazen handed Torres a term of 46 months. He is expected to face deportation proceedings following completion of his federal prison sentence.
On Aug. 28, 2012, Torres was arrested at the U.S. Border Patrol (BP) checkpoint on Interstate 35, approximately 29 miles north of Laredo, after he was discovered carrying numerous bundles of marijuana.
Torres was driving a tractor trailer and BP drug dogs alerted to the presence of narcotics during primary inspection. Agents searched the trailer and discovered 171 kilograms of marijuana hidden behind an after-market wall, inside the trailer. Agents learned that Torres had purchased the drug-laden trailer in Edinburg and intended to deliver the marijuana to Atlanta, Ga., in return for $20,000.
Torres, who initiated his trip in New Jersey, gave multiple inconsistent statements regarding his trip and trailer load. Upon further investigation, it was discovered that four days prior to this arrest, Torres had been previously detained by Texas Department of Public Safety (DPS) officers for traffic violations. Torres gave a false story to officers regarding his reasons for business in the State of Texas.
Torres was permitted to remain on bond and voluntarily surrender to the United States Marshals Service in the near future.
Drug Enforcement Administration investigated along with BP and DPS. Assistant U.S. Attorneys Sanjeev Bhasker and Elizabeth Rabe prosecuted the case.
New Haven Man Sentenced to Five Years in Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that FREEMAN LEWIS, also known as “Free,” 31, of New Haven, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 60 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.
LEWIS is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants and seizures of narcotics and firearms. The investigation revealed that LEWIS conspired with others to purchase and redistribute crack cocaine.
On January 17, 2013, LEWIS pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of cocaine base (“crack”).
LEWIS’ criminal history includes multiple felony convictions, including felony drug convictions.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Nampa Man Pleads Guilty to Drug ConspiracyRead the Press Release
POCATELLO – Noe Gonzalez, 29, of Nampa, Idaho, pleaded guilty yesterday in United States District Court in Pocatello to conspiracy to distribute and possess with intent to distribute 93.53 grams of methamphetamine, U.S. Attorney Wendy J. Olson announced.
According to court records, on February 12, 2013, Idaho State Police stopped Gonzalez and his passenger for a traffic violation. Gonzalez provided a false identification document to the officer. Subsequently, police found drug paraphernalia and a handgun inside the vehicle. Gonzalez and his passenger were arrested and the vehicle impounded. When the vehicle was searched pursuant to a search warrant, police discovered a white tube sock containing four baggies of methamphetamine hidden in the dash and 9 millimeter handgun ammunition hidden in a void above the glove box. Forensic examination of the methamphetamine by the Idaho State Lab determined its total weight to be 93.53 grams.
The charge of conspiracy to distribute is punishable by ten years up to life in prison, a maximum fine of $10 million, and at least five years supervised release.
Sentencing is set for November 18, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The charges are the result of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), led by the Idaho State Police and Federal Bureau of Investigation. Other federal agencies participating in the OCDETF program are the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Montana Man Pleads Guilty to Illegally Possessing FirearmRead the Press Release
COEUR D’ALENE – Allen Farris Wright, 21, of Libby, Montana, pleaded guilty today in United States District Court in Coeur d’Alene, to unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Wright was indicted by a federal grand jury in Idaho on March 19, 2013.
According to court documents, Wright is prohibited from possessing firearms due to his prior conviction for burglary in San Joaquin County, California, a felony offense punishable by a term of imprisonment exceeding one year. On January 11, 2011, Wright unlawfully possessed a Ruger .357 Magnum firearm.
The charge of unlawful possession of a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for December 3, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d’Alene.
The case was investigated by the North Idaho Violent Crimes Task Force (NIVCTF). NIVCTF members include the Federal Bureau of Investigation, the Idaho State Police, Kootenai County Sheriff's Office, Shoshone County Sheriff's Office, Bonner County Sheriff's Office, Coeur d'Alene Police Department, Post Falls Police Department, and Coeur d'Alene Tribal Police. The NIVCTF investigates a myriad of violent crimes, including armed robbery, kidnapping, felonious assault and drug trafficking.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Maryland Man Sentenced to Four Years in Prison for Involuntary Manslaughter in Traffic Fatality in Northeast Washington-Impaired Driver Struck Pedestrian, Who Was in A Crosswalk-Read the Press Release
WASHINGTON – Joel R. Bromwell, 32, of Annapolis, Md., was sentenced today to four years in prison on charges of involuntary manslaughter and driving under the influence of alcohol stemming from a traffic fatality in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Bromwell pled guilty to the charges in May 2013 in the Superior Court of the District of Columbia. He was sentenced by the Honorable Lynn Leibovitz. In addition, Bromwell was ordered to pay $200 in court costs, and, upon his release from prison, he will be placed on three years of supervised release.
According to the government’s evidence, on March 21, 2013, at about 8:15 p.m., Bromwell was driving a sport utility vehicle at a high rate of speed, headed east in the 1100 block of Florida Avenue NE. The victim, Ruby L. Whitfield, 71, and two other individuals were walking across Florida Avenue at the intersection with 11th Street NE, in a marked crosswalk. Ms. Whitfield had just left church after an usher practice for the upcoming Palm Sunday.
Vehicular traffic at the intersection had stopped to give Ms. Whitfield and the other pedestrians the right of way. An eyewitness saw the SUV strike Ms. Whitfield without stopping, and she was lodged beneath the vehicle for about 86 feet.
The eyewitness followed the SUV as it drove from the scene and approached Bromwell while he was stopped at a red light a block away. The witness told Bromwell that he had just hit someone and that he should return to the scene. Instead, Bromwell drove off without making his identity known.
The Metropolitan Police Department (MPD) located the SUV and Bromwell a short time later. Bromwell failed field sobriety tests. He admitted that he was the driver of the SUV and that he had been drinking prior to the crash. Bromwell was arrested and, while at a police station, breath tests indicated that his blood alcohol content was above the legal limit for driving.
In announcing the sentence, U.S. Attorney Machen praised those who investigated the case for the Metropolitan Police Department, including members of the Major Crash Unit. He also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Sandra Lane, Fern Rhedrick and Phil Aronson, and Victim Witness Program Specialist Marcia Rinker.
Finally, he commended the work of Assistant U.S. Attorney Edward A. O’Connell, who prosecuted the matter.
13-298Manhattan U.S. Attorney Announces Arrest of Alleged International Narcotics TraffickerRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Derek Maltz, Special-Agent-in-Charge of the Special Operations Division of the United States Drug Enforcement Administration (“DEA”), announced today that on August 29, 2013, Panamanian authorities arrested DINO BOUTERSE in the Republic of Panama and turned him over to U.S. authorities to face charges that he conspired to import cocaine into the United States. BOUTERSE will be presented and arraigned in Manhattan federal court before U.S. Magistrate Judge James C. Francis IV later today.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Dino Bouterse conspired to send cocaine to the United States in a suitcase, and brandished a destructive weapon during the act. With his arrest, this Office continues to make sure that those who attempt to transport drugs into our country are apprehended and brought to justice, no matter where they live.”
DEA Special-Agent-in-Charge Derek Maltz said: “Bouterse is a significant drug trafficker who allegedly possessed dangerous weapons. Bouterse has a history of drug and weapons trafficking, having been convicted of similar charges in his home country of Suriname in 2005. Thanks to our vast network of law enforcement and informants around the world, DEA and our partners disrupted this drug trafficking conspiracy and he and Muntslag will now face justice here in the United States.”
According to the allegations in the Indictment, BOUTERSE conspired to import cocaine into the United States. As part of this conspiracy, BOUTERSE caused a suitcase containing 10 kilograms of cocaine to be transported out of Suriname aboard a commercial flight, and in the course of engaging in the drug transaction possessed an antitank weapon.
EDMUND QUINCY MUNTSLAG, who is also charged in the Indictment, was separately arrested yesterday in Trinidad and Tobago.
The indictment charges BOUTERSE, 40, of Paramaribo, Suriname, in two counts. Count One charges BOUTERSE with conspiring to import cocaine into the United States. Count Two charges BOUTERSE with carrying a firearm or destructive device during and in relation to a drug-trafficking crime. Counts One and Two each carry a maximum penalty of life in prison.
MUNTLSAG, 29, of Suriname, is charged with conspiring to import cocaine into the United States. The charge carries a maximum sentence of life in prison.
Mr. Bharara praised the outstanding investigative work of the DEA’s Special Operations Division. Mr. Bharara also thanked the DEA’s Panama City Country Office, the DEA’s Port of Spain Country Office, the Government of the Republic of Panama, and the U.S. Department of Justice’s Office of International Affairs.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Edward Y. Kim, Michael D. Lockard, and Adam Fee are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Manhattan U.S. Attorney Announces Arrest of Alleged International Narcotics TraffickerRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Derek Maltz, Special-Agent-in-Charge of the Special Operations Division of the United States Drug Enforcement Administration (“DEA”), announced today that on August 29, 2013, Panamanian authorities arrested DINO BOUTERSE in the Republic of Panama and turned him over to U.S. authorities to face charges that he conspired to import cocaine into the United States. BOUTERSE will be presented and arraigned in Manhattan federal court before U.S. Magistrate Judge James C. Francis IV later today.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Dino Bouterse conspired to send cocaine to the United States in a suitcase, and brandished a destructive weapon during the act. With his arrest, this Office continues to make sure that those who attempt to transport drugs into our country are apprehended and brought to justice, no matter where they live.”
DEA Special-Agent-in-Charge Derek Maltz said: “Bouterse is a significant drug trafficker who allegedly possessed dangerous weapons. Bouterse has a history of drug and weapons trafficking, having been convicted of similar charges in his home country of Suriname in 2005. Thanks to our vast network of law enforcement and informants around the world, DEA and our partners disrupted this drug trafficking conspiracy and he and Muntslag will now face justice here in the United States.”
According to the allegations in the Indictment, BOUTERSE conspired to import cocaine into the United States. As part of this conspiracy, BOUTERSE caused a suitcase containing 10 kilograms of cocaine to be transported out of Suriname aboard a commercial flight, and in the course of engaging in the drug transaction possessed an antitank weapon.
EDMUND QUINCY MUNTSLAG, who is also charged in the Indictment, was separately arrested yesterday in Trinidad and Tobago.
The indictment charges BOUTERSE, 40, of Paramaribo, Suriname, in two counts. Count One charges BOUTERSE with conspiring to import cocaine into the United States. Count Two charges BOUTERSE with carrying a firearm or destructive device during and in relation to a drug-trafficking crime. Counts One and Two each carry a maximum penalty of life in prison.
MUNTLSAG, 29, of Suriname, is charged with conspiring to import cocaine into the United States. The charge carries a maximum sentence of life in prison.
Mr. Bharara praised the outstanding investigative work of the DEA’s Special Operations Division. Mr. Bharara also thanked the DEA’s Panama City Country Office, the DEA’s Port of Spain Country Office, the Government of the Republic of Panama, and the U.S. Department of Justice’s Office of International Affairs.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Edward Y. Kim, Michael D. Lockard, and Adam Fee are in charge of the prosecution.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Dino Bouterse and Edmund Quincy Muntslag Indictment
Man Found Guilty of First-Degree Felony Murder, Other Charges in Brutal Slaying of Restaurant Owner-Victim Was Stabbed Repeatedly in November 2010 Robbery-Read the Press Release
WASHINGTON - Alexander Gomez-Enamorado, 23, was found guilty by a jury today of conspiracy, first-degree felony-murder, tampering with evidence, obstruction of justice, and related charges for the murder of a restaurant owner, U.S. Attorney Ronald C. Machen Jr. announced.
The verdict followed a trial in the Superior Court of the District of Columbia. Gomez-Enamorado, who lived in various locations in the Washington, D.C. area, is originally from Honduras. He is facing more than 100 years in prison, and is scheduled to be sentenced by the Honorable Russell F. Canan on Nov. 8, 2013 – exactly three years to the day after the murder.
At trial, the evidence established that in early November, 2010, Gomez-Enamorado recruited an associate to rob restaurant owner Miguel Ventura, 54, at knifepoint. Once inside Mr. Ventura’s establishment, Izalco Restaurant, in the 1200 block of 11th Street NW, Gomez-Enamorado and his partner attempted to rob Mr. Ventura.
Mr. Ventura fought back, and was brutally attacked, suffering ten stab wounds, 30 cutting wounds, and repeated blunt force trauma to his head and face, breaking his nose and cheekbones. Gomez-Enamorado and his partner fled, and Gomez-Enamorado disposed of the murder weapon. The victim’s daughter, Ofelia Ventura, discovered her father’s body at the restaurant later that day. Ms. Ventura testified that her father was so badly beaten and disfigured that she could not even recognize him when she saw him dead on the floor of his restaurant.
In the days and months after the murder, Gomez-Enamorado falsely reported to the police that he was merely a witness to the murder of Mr. Ventura. He even fraudulently received assistance from the Crime Victim’s Compensation Program, which is administered by the Superior Court to assist victims of violent crime.
Thanks to the persistence and vigorous work of the Metropolitan Police Department, with assistance from the FBI, the defendant’s lies unraveled and he ultimately was arrested in May 2012.
After a two-week trial, the jury deliberated for less than one day before returning guilty verdicts on the following charges: conspiracy to commit armed robbery, armed robbery, second-degree burglary, first-degree felony murder, tampering with evidence and obstruction of justice.
In announcing the verdict, U.S. Attorney Machen recognized the outstanding efforts of the detectives, evidence technicians, and DNA Analyst who investigated the case from the Metropolitan Police Department, as well as the Special Agent from the FBI who worked on the matter. He also commended the work of Assistant U.S. Attorneys Magdalena Acevedo and Glenn Kirschner, who tried the case, as well as the outstanding efforts of Paralegal Specialist Meridith McGarrity and Victim/Witness Advocate Christina Principe.
13-299Lubbock County Man Admits Possessing Child PornographyRead the Press Release
LUBBOCK, Texas—Stephen Carpenter, 33, of Slaton, Texas, appeared in federal court today, before U.S. District Judge Sam R. Cummings, and pleaded guilty to one count of possession of child pornography. Carpenter, who is on bond, faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. U.S. Attorney Sarah R. Saldaña, of the Northern District of Texas, made the announcement today.
According to plea documents filed in the case, Carpenter used a file-sharing program to search for depictions of minors engaged in sexually explicit conduct. Carpenter downloaded and viewed many of these depictions in the form of video files, and on February 14, 2013, Carpenter was found to be in possession of a computer containing depictions of minors engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Slaton Police Department. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Lookout in Armed Bank Robbery IndictedRead the Press Release
OAKLAND – Yesterday, a federal grand jury in San Francisco returned an indictment charging Kevin Tyrone Buford with one count of aiding and abetting armed bank robbery, announced United States Attorney Melinda Haag.
The Indictment alleges that on March 1, 2013, Kevin Tyrone Buford, 27, of Vallejo, Calif., participated in the armed robbery of the Mechanics Bank on Pinole Valley Boulevard.
Buford was arrested on August 19, 2013, and made his initial appearance in federal court in Oakland on August 20, 2013. Buford is currently in custody. His next scheduled appearance is on September 26, 2013, at 9:30 a.m. before The Honorable Jeffrey S. White, U.S. District Judge.
The maximum statutory penalty for armed bank robbery, in violation of 18 U.S.C. § 2113(a) and (d), is 25 years in prison. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the FBI and the Pinole Police Department.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Buford must be presumed innocent unless and until proven guilty.
Local Priest Sentenced on Federal Child Pornography ChargesRead the Press Release
St. Louis, MO – FATHER WILLIAM F. VATTEROTT of St. Louis, MO, was sentenced to 37 months in prison for possession of child pornography between June 2010 and June 2011.
Father Vatterott pled guilty to one felony count of possession of child pornography. He was sentenced before Senior United States District Judge E. Richard Webber.
This case was investigated by the Missouri Internet Crimes Against Children Task Force, Regional Computer Crimes Education and Enforcement Group (RCCEEG) and by Investigator Donya Jackson for the U.S. Attorney’s Office. Assistant United States Attorney Rob Livergood handled the case for the U.S. Attorney's Office.
Leitchfield, Kentucky Man Guilty of Possession and Distribution of Child Pornography ImagesRead the Press Release
OWENSBORO, Ky. - A Leitchfield, Kentucky, man pleaded guilty this week, in United States District Court, before Magistrate Judge Dave Whalin, to a three-count federal grand jury indictment charging him with violating federal child pornography laws including the possession and distribution of child pornography announced David J. Hale, United States Attorney for the Western District of Kentucky.
Michael Brandon Thompson, age 29, admitted in court to using a peer to peer file sharing network to allow others to download images of child pornography between July 18, 2011 and September 2, 2011. According to the factual basis found in an Affidavit attached to a Criminal Complaint, a detective with the Colorado Springs Police Department, utilizing the peer-to-peer file sharing network downloaded several password-protected files from Thompson. During the download, the detective was able to preview approximately 300 video files containing images of children engaged in sexually explicit conduct. The Colorado law enforcement official forwarded the lead to the Kentucky State Police who executed a state search warrant on Thompson’s home. They seized computer equipment and storage devices for digital media. A forensic examination of those items revealed tens of thousands of videos and still images of child pornography, including the depictions of infants being sexually abused.
Thompson faces a statutory mandatory minimum sentence of 5 years in prison. The maximum potential penalties are 50 years in prison, a fine of $750,000 and a period of supervised release of at least 5 years and could be for the remainder of his life. Sentencing is scheduled before Chief Judge Joseph H. McKinley, Jr. on November 15, 2013, in Owensboro, Kentucky.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Kentucky State Police conducted the investigation through Kentucky’s Internet Crimes Against Children “ICAC” task force..
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Lamont Man Sentenced to Probation for Ginseng OffenseRead the Press Release
DAVENPORT, IA – On August 30, 2013, Jeffrey Alan Sargent, age 45, of Lamont, Iowa, was sentenced to two years of probation for conspiracy to buy and sell illegally harvested ginseng, announced United States Attorney Nicholas A. Klinefeldt. The crime of buying and selling illegally harvested ginseng is a felony. United States District Judge John A. Jarvey also prohibited Sargent from any involvement in the ginseng trade during the term of his probation.
In 2010 and 2011 Sargent purchased ginseng from multiple sellers who Sargent knew had illegally obtained the ginseng. Sargent then sold the illegally harvested and purchased ginseng to a fur and trading company in Minnesota. Sargent obtained approximately $10,000 in illegally obtained ginseng in 2010 and 2011.
This case was investigated by the United States Fish and Wildlife Service and the Iowa Department of Natural Resources, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Iranian Citizen Sentenced to 48-Month Prison Term for Conspiracy to Export High-Performance Electronics to IranRead the Press Release
WASHINGTON - Arsalan Shemirani, 30, an Iranian citizen, has been sentenced in the District of Columbia to 48 months in prison for conspiracy to illegally export more than 3,000 electronic components from the United States to Iran through Hong Kong. Shemirani was also sentenced to forfeiture in the amount of $187,305.
The sentence was announced by Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; John P. Carlin, Acting Assistant Attorney General for National Security; and Scot Rittenberg, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI), Washington, D.C.
On Jan. 25, 2013, Shemirani pled guilty in the U.S. District Court for the District of Columbia to conspiracy to violate the International Emergency Economic Powers Act (IEEPA) and to defraud the United States. He was sentenced by the Honorable Richard J. Leon on Aug. 15, 2013. The sentence was unsealed by the Court and made public Aug. 29, 2013.
According to court documents filed in the case, beginning as early as January 2010 and continuing through at least November 2011, Shemirani, with his brother in Iran and a co-conspirator in Hong Kong, exported electronic parts from the United States to Iran, via Canada and Hong Kong, without first obtaining a license or authorization from the Office of Foreign Assets Control, Department of Treasury.
The defendant, who was residing in Canada during the time of the conspiracy, received purchase orders from his brother, who operated an electronics supply business in Tehran, Iran. The items purchased by the defendant on behalf of the conspiracy included high performance electronic power equipment such as field programmable microchips, acceleration sensor semi-conductors, analog converters, and other testing and power equipment. During the course of the conspiracy, the defendant purchased approximately 3,695 electronic components that were then illegally exported to his brother in Iran.
The investigation was conducted by the ICE Homeland Security Investigations (HSI) in Washington, D.C. The prosecution was handled by Assistant U.S. Attorney Courtney Spivey Urschel and former Assistant U.S. Attorney Robert Bowman, from the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney Brandon Van Grack from the Counterespionage Section of the Justice Department’s National Security Division.
13-297Harold’s House Hosting First East Texas Child Abuse ConferenceRead the Press Release
Department of Justice
Office of Public AffairsLUFKIN – Harold’s House is hosting the East Texas Child Abuse Conference on Sept. 12-13, 2013 at Courtyard by Marriott. This is the first conference of its kind in East Texas, bringing together federal, state and local officials across all fields of investigation, prosecution and victim advocacy to share resources, best practices and training on crimes involving the physical or sexual abuse or neglect of children.
“We are excited to offer this great opportunity to our partners in law enforcement, the court system and child services,” said Laura Squiers, Executive Director. “We all want the best outcomes for children suffering abuse. This conference will help us achieve that goal by putting new information and resources in the hands of those working on the front lines and behind the scenes to protect children suffering abuse.”
Since its beginning 10 years ago, Harold’s House has served thousands of children suffering abuse. As a Children’s Advocacy Center, its goal is to lessen the trauma of children suffering abuse through a team approach to child-centered case response. The Center also works to empower the community to end abuse through prevention training and at-risk parenting classes offered free of charge.
The East Texas Child Abuse Conference features speakers from the U.S. Attorney’s Office, U.S. Marshal’s Office, Office of the Attorney General, Angelina County District Attorney’s Office, Lufkin Police Department, Child Protective Services, the City of Lufkin, Harold’s House and the TLL Temple Foundation SANE Program.
The conference features plenary sessions including case reviews and training and program presentations, plus resource information and networking opportunities. Topics include: cybercrime, connecting to resources, CACs, SANEs, Project Safe Childhood, CPS, child pornography and exploitation, family care, case studies, multidisciplinary teams, helping children heal, Darkness to Light’s Prevent Now! and sex offender fugitive investigation and failure to identify as a sex offender.
The event is open to members of law enforcement, court officials, social workers, counselors, child advocates and family crisis workers, and offers TCLEOSE/CEU credits through Angelina College. Registration is required for the event and seating is limited. Contact Harold’s House at (936) 634-1999 to register by phone or request a registration form. Follow updates at: www.facebook.com/haroldhouse.org.
Getaway Driver in Takeover-Style Bank Robbery Pleads GuiltyRead the Press Release
LUBBOCK, Texas — The getaway driver in the May 1, 2013, armed robbery of a Lubbock National Bank branch appeared in federal court today, before U.S. District Judge Sam R. Cummings, and pleaded guilty to one count of aggravated bank robbery and aiding and abetting as charged in a superseding indictment. Gabriel Tenorio, 30, of Lubbock, has been in custody since his arrest in early June 2013 on a related federal criminal complaint. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Tenorio’s co-defendant, Russell Eugene Heath,44, also of Lubbock, was arrested two weeks ago in Calexico, California. He is charged in a superseding indictment with multiple counts of aggravated bank robbery and firearms violations related to two bank robberies in Lubbock and one in Amarillo, Texas, in May 2013. A date has not yet been set for him to make his initial appearance in U.S. District Court in Lubbock.
According to the factual resume filed today, on May 1, 2013, Tenorio and Heath planned and executed the robbery of the Lubbock National Bank located at 4420 19th Street in Lubbock. At approximately 12:45 p.m., Heath, wearing a mask and gloves and carrying what appeared to be a Glock firearm, entered the bank, pointed the firearm at the tellers and began yelling at them to give him money. He jumped over a counter, opened a teller drawer and began stuffing money in his pockets. He then ran from the bank to a waiting vehicle driven by Tenorio. Tenorio and Heath split the proceeds of the robbery.
Tenorio faces a maximum statutory penalty of 25 years in federal prison. Judge Cummings ordered a presentence investigation report with a sentencing date to be set following the completion of that report.
An indictment contains allegations that a defendant has committed crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The investigation is being conducted by the FBI, the Lubbock Police Department, the Amarillo Police Department and the Lubbock County Sheriff’s Office. Deputy Criminal Chief Assistant U.S. Attorney Denise Williams is in charge of the prosecution.
Galesburg, Illinois Man Sentenced to 10 Years of Imprisonment for Child Pornography OffenseRead the Press Release
DAVENPORT, IA – On August 30, 2013, David Ponce, age 44, of Galesburg, Illinois, was sentenced to 120 months of imprisonment for attempting to entice a minor to engage in sexual activity, announced United States Attorney Nicholas A. Klinefeldt. United States District Judge John A. Jarvey also sentenced Ponce to 12 years of supervised release following the period of imprisonment.
Between October 12, 2011, and July 5, 2012, Ponce communicated online with an undercover officer working under the assumed identity of a thirteen-year old girl. Ponce discussed sexual activity in multiple chats with the undercover officer, and traveled from Galesburg, Illinois, to Clinton, Iowa, on July 5, 2012, for the purpose of engaging in sexual activity with the detective’s online persona. Ponce was arrested after his arrival at a predetermined meeting spot in Clinton, Iowa.
This case was investigated by the Clinton County Sheriff’s Office and the Iowa Crimes Against Children Task Force, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Four Indicted for Drug Conspiracy, Kidnapping involving sexual torture, and using firearms in furtherance of these crimesRead the Press Release
ANCHORAGE, AK – United States Attorney Karen L. Loeffler announced today, August 30, 2013, that four Anchorage men have been indicted for drug conspiracy, kidnapping, and using firearms in furtherance of these crimes. The men are: Stuart T. Seugasala, a/k/a "Tone", age 38; Phosavan Khamnivong, a/k/a "P.K.", age 33, Timothy Miller, a/k/a "Lil' Tone", age 25, and Anaoi Sialofi, a/k/a "A-loc", age 25. The indictment also charges Stacy F. Laulu, age 31, of Anchorage, with violating the Health Insurance Portability and Accountability Act of 1996 (HIPAA) by disclosing protected health information to another for malicious harm.
The indictment alleges that Seugasala, Khamnivong, Miller, and Sialofi participated in a conspiracy to distribute more than 500 grams of methamphetamine, as well as heroin, cocaine, and crack cocaine. The indictment goes on to allege that Seugasala organized "home invasions" (which he called "missions") of other drug trafffickers in order to obtain controlled substances for distribution and/or drug proceeds. According to the indictment, Miller and Sialofi would sometimes accompany Seugasala on these "missions".
The indictment describes one such alleged mission that occurred in March 2013. In essence, it describes how Seugasala directed Miller to prepare for a “mission” against “Victim A” in retribution for Victim A's failure to pay a drug debt to Seugasala and Khamnivong. It further alleges that Seugasala met with Victims A and B and escorted them to Miller's apartment. Seugasala, Khamnivong, Miller, and Sialofi held Victim A and “Victim B” at gunpoint, bound them with duct tape, and proceeded to beat them. It is further alleged that Seugasala sexually assaulted Victim A with a hot curling iron, causing serious physical injury to Victim A that required hospitalization. During the assault, the indictment alleges that Seugasala directed Miller to take a video of part of the sexual assault on Victim A using Miller's cellular telephone, so that it could be shown to others who owed them drug debts. After the assault on Victim A, the indictment alleges that Seugasala also sexually assaulted Victim B with the curling iron.
Days later, the indictment alleges that Seugasala shot another person, identified as “Victim C”. Seugasala then contacted an employee of an Anchorage medical center, later identified as Stacy Laulu, for information on Victims A and C. The indictment alleges that Laulu provided confidential patient information about the injuries and treatments of Victims A and C to Seugasala.
These actions form the basis for two charges of violations of HIPAA against Ms. Laulu. The indictment also demands criminal forfeiture of property, including two Cadillacs, an Infiniti, and five firearms.Seugasala and Miller are in federal custody on other charges, and there arraignments will be set by the court. Sialofi was arrested yesterday, and will be arraigned today. Khamnivong is not yet in custody. Information on his whereabouts can be provided to DEA (907-271-5033) or FBI (907-276-4441). A photo of Khamnivong is attached.
U.S. Attorney Karen Loeffler stated, “Unfortunately, violence often goes hand-in- hand with drug trafficking. We are dedicated to working with our law enforcement partners to bring the most violent drug traffickers to justice, so they can neither harm the community nor potential victims of their brutal attacks.”
The Drug Enforcement Administration, the Federal Bureau of Investigation’s Safe Streets Task Force, the Anchorage Police Department’s Special Assignment, Sex Crimes, and Vice Units, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives participated in the investigation that led to the indictments. These agencies were assisted by the Valdez Police Department, the Alaska State Troopers, and the United States Postal Inspection Service. The case is being prosecuted by the United States Attorney’s Office, in coordination with the Anchorage District Attorney’s Office.
The maximum penalties for the drug conspiracy charge include a minimum of 10 years in prison and maximum of life in prison, a $10 million fine, and at least five years of supervised release. The kidnapping charges carry potential life sentences, and the firearms charges carry mandatory minimum consecutive sentences of five and 25 years, respectively. Finally, the HIPAA violation carries a maximum sentence of 10 years in prison, a $250,000 fine, and three years of supervised release.The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Four Convicted in Northeast Houston Theft and Fraud RingRead the Press Release
HOUSTON – Dana Sue Hales, 41, has entered a plea of guilty to conspiracy to commit bank fraud, possessing stolen mail and aggravated identity theft, United States Attorney Kenneth Magidson announced today along with Bernard Butler, acting special agent in charge, Internal Revenue Service - Criminal Investigation. With her plea, a total of four Houston area residents have now been convicted in federal court in relation to a theft and fraud ring that operated in Northeast Harris County and elsewhere.
Last week, Lindsay Ann Grice, 26, and Jason Craig White, 32, entered pleas of guilty to their part in the conspiracy. Grice was convicted of bank fraud and aggravated identity theft, while White pleaded to possessing stolen mail and possession of a firearm by a convicted felon. On Aug. 9, 2013, Joseph Scott Ryder, 44, also entered pleas of guilty to possessing stolen mail and being a convicted felon in possession of a firearm.
“Individuals who commit identity theft and refund fraud deserve to be punished to the fullest extent of the law,” said Butler. “These individuals demonstrated a blatant disregard of the integrity of the United States tax system and caused immeasurable hardship to innocent victims. IRS - CI remains committed to the pursuit of identity theft and, together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar conduct accountable.”
According to the information revealed in open court, beginning at least in January 2012 the defendants broke into “blue” mail boxes located at or near area post offices to steal mail. Much of what the defendants stole included outgoing mail from citizens paying their bills. After opening the mail, they created false identifications and used them to open bank accounts and deposit the checks. On more than one occasion, area law enforcement were able to seize gym bags full of stolen mail from locations where the defendants were staying.
During the investigation, Grice was identified from bank surveillance photos negotiating stolen checks at First Convenience Bank. At the time of her guilty plea, she admitted she participated in the mail theft ring and had used the personal identification information of another person to cash stolen checks.
Information from court documents also revealed that in addition to stealing mail and cashing the checks using false identifications, Hales prepared false federal income tax returns and deposited the refund checks to accounts under her control.
On Sept. 5, 2012, Ryder was arrested at the residence of Hales on a parole violation warrant, at which time he was found to be in possession of a firearm. Ryder subsequently admitted that he, Hales and White were stealing mail, creating false identifications and cashing checks.
Later that month, agents and officers attempted the arrest of White, at which time he fled and attempted to pull a firearm. However, he dropped the gun and was arrested a short distance away. Stolen mail and additional firearms were found in a subsequent search of the residence. White confessed to participating with Hales, Ryder and others in stealing mail.
The conspiracy count and the bank fraud counts each carry a possible punishment of up to 30 years imprisonment as well as $1 million fine. For possessing stolen mail, all but Grice face an additional five-year possible term of federal imprisonment and a $250,000 fine. White and Ryder each also face a possible punishment of up to 10 years in prison and a possible $250,000 fine for being felons in possession of a firearm. Additionally, Hales and Grice will also have to serve a mandatory two-year prison term for aggravated identity theft which must be served consecutively to any sentence imposed.
U.S. District Judge Melinda Harmon, who accepted the pleas, has set Ryder’s sentencing for Oct. 25, 2013, while Grice and White will be sentenced Nov. 18, 2013. Hales is set for Nov. 22.
The matter was investigated by IRS-CI and the U.S. Postal Inspection Service with important contributions from the Harris County Sheriff’s Department, Harris County Precinct Four Constable’s Office, Humble Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives as well as the U.S. Marshals Service Violent Offenders Task Force. The case is being prosecuted by Assistant U.S. Attorney James R. Buchanan.
Fort Thompson Man Sentenced for Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on August 26, 2013, by U.S. District Judge Roberto A. Lange.
Myron Touche, Sr., age 44, was sentenced to 22 months of imprisonment, 18 months of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Touche was indicted by a federal grand jury on February 13, 2013. He pled guilty to the above charge on June 4, 2013.
The charge stems from an incident occurring on November 10, 2012, wherein Touche ended up at the trailer house of his niece and her boyfriend. Two individuals were arguing in the back bedroom, and Touche went to the back room and confronted the two arguing. Touche then grabbed a gun that was by the front door and pointed it at the victim. The victim and another individual were able to wrestle the gun away from Touche.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Touche was immediately turned over to the custody of the U.S. Marshals Service.
Fort Pierce Man Indicted for Drug Trafficking and Firearms ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announce the indictment of Samuel George Brown, 49, of Fort Pierce, on charges of prohibited possession of firearms, in violation of Title 18, United States Code, Sections 922(g) and (k); possession with intent to distribute marijuana, in violation of Title 21, United States Code, Section 841(a); and, possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c). Brown appeared in court earlier this morning before U.S. Magistrate Judge Frank J. Lynch, Jr. for arraignment on the charges.
According to the indictment, as well as an earlier federal complaint, Brown was found in possession of a .380 caliber Hi-Point handgun, as well as a .22 caliber Marlin rifle and a 12-gauge Mossberg shotgun, with corresponding ammunition, in his home. Officers of the St. Lucie County Sheriff’s Office discovered the firearms and ammunition, together with marijuana packaged for sale, when they executed a search warrant at Brown’s Fort Pierce home on June 8, 2013. Brown is a previously convicted felon.
If convicted, the defendant faces a maximum statutory term of imprisonment of ten years on each of the prohibited firearms possession counts, as well as the drug trafficking count, and a mandatory consecutive sentence of an additional five years, on the gun possession in furtherance of a drug crime count.
Mr. Ferrer commended the investigative efforts of ATF, the Fort Pierce Police Department, and the St. Lucie County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Vice-President of Sanborn Map Company, Inc. Pleads Guilty to Illegally Using an Unapproved Foreign Subcontractor on A Government ContractRead the Press Release
St. Louis, MO – Sanborn Map Company Inc. is a photogrammetric mapping and geographic information system services company headquartered in Colorado Springs, Colorado. Sanborn operated a regional office in Chesterfield, Missouri, until December, 2011.
ROBERT A. WILLIAMS was employed as a Senior Vice President and General Manager at Sanborn from 2000 until he was laid off in 2011.
In June 2007,Williams submitted a proposal to the United States Army Corps of Engineers, St. Louis Division, for an indefinite delivery/indefinite quantity contract to furnish all labor, supplies, materials, plant, equipment and personnel necessary to provide photogrammetric mapping and aerial photography for the Corps.
According to statements made in court during the plea, in September 2007, Williams participated in cost negotiations for the contract, and one of the provisions was that the Corps must pre-approve Sanborn's use of all subcontractors. Williams agreed to that provision, and the Corps of Engineers awarded the contract to Sanborn. Later that month, the Corps issued a "Request for Proposal" for digital orthophoto production. Williams submitted Sanborn's cost proposal and all cost and pricing data reflected that work would be completed by Sanborn and not subcontractors.
During May 2008, Williams arranged for Spatial Data Consultants Inc., a geospatial data production company located in High Point, North Carolina, to funnel triangulation and digital orthophoto production to Eastdawn Corporation, an unapproved foreign subcontractor located in China. Eastdawn Corporation was able to complete the orthophoto production at a rate much lower than the negotiated contract rate.
In September 2009, Williams presented to the Corps a claim for final payment on the contract, and certified that all of the contract requirements were met. The Corps paid Sanborn for the work completed not knowing it was completed by an unapproved foreign subcontractor.
Williams, who resides in Austin, Texas, pled guilty to one misdemeanor count of theft of Government money before United States Magistrate Judge Shirley Mensah. Sentencing has been set for November 25, 2013.
This case was investigated by the United States Army Criminal Investigation Division Procurement Fraud Division and the Defense Criminal Investigative Service. Assistant United States Attorney Jennifer Roy is handling the case for the U.S. Attorney's Office.
Former Office Manager for Health Care Solutions Network<br /> Sentenced for $63 Million Medicare FraudRead the Press Release
A former office manager at the defunct health care provider Health Care Solutions Network Inc. (HCSN) was sentenced today in Miami to serve 68 months in prison for her role in a fraud scheme that resulted in more than $63 million in fraudulent claims to Medicare and Florida Medicaid.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami office made the announcement.
Lisset Palmero, 45, of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida. In addition to her prison term, Palmero was sentenced to three years of supervised release and ordered to pay restitution in the amount of $17.4 million.
During the course of the conspiracy, Palmero was employed as a receptionist and office manager at HCSN, a mental health facility that purported to provide Partial Hospitalization Program (PHP) services. A PHP is a form of intensive treatment for severe mental illness.
HCSN of Florida (HCSN-FL) operated community mental health centers at two locations. According to court documents, Palmero was aware that HCSN-FL paid illegal kickbacks to owners and operators of Miami-Dade County Assisted Living Facilities (ALF) in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid. Palmero also knew that many of the ALF referral patients were ineligible for PHP services because they suffered from mental retardation, dementia or Alzheimer's disease.Court documents reveal that Palmero was aware that HCSN-FL personnel were fabricating patient medical records. Many of these medical records were created weeks or months after the patients were admitted to HCSN-FL for purported PHP treatment. Palmero was also aware that medical records were fabricated for “ghost patients” who were never admitted to the HCSN-FL PHP. During her employment at HCSN-FL, Palmero actively concealed the fabrication of medical records by preparing, and causing others to prepare, documentation that was later utilized to support false and fraudulent billing to government-sponsored health care benefit programs, including Medicare and Florida Medicaid.
According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported HCSN-FL mental health services.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case was prosecuted by Trial Attorney Allan J. Medina and former Special Trial Attorney William J. Parente.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.