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Thursday 29 August 2013
North Miami Man Charged in Unemployment Benefits SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Richard Walker, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and Jesse Panuccio, Executive Director, State of Florida Department of Economic Opportunity, announce the return of a 21-count indictment charging Guy Robert Nalien, 26, of North Miami, Florida, with wire fraud, mail fraud and aggravated identity theft in unemployment benefits scheme.
According to the indictment, Nalien utilized the personal identification of others to falsely represent to the Florida Department of Economic Opportunity Unemployment Compensation Program that such individuals were unemployed and eligible to obtain Florida unemployment compensation benefits. The indictment further alleges that Nalien received the fraudulently obtained benefits for his own personal use.
If convicted, Nalien faces a statutory maximum penalty of 20 years in prison for each count of mail fraud and wire fraud, followed by three years of supervised release, a fine of up to $250,000 and restitution, and a consecutive two years in prison for each count of aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations and the State of Florida Department of Economic Opportunity. The case is being prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.
An indictment is only an accusation, and defendants are presumed innocent until and unless 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.
Nine Year Prison Sentence for Illegal Gun RunnerRead the Press Release
PHILADELPHIA – Luis Ramos, 35, of Philadelphia, was sentenced yesterday to 108 months in prison for his role in an illegal gun trafficking operation. Ramos was charged with six other defendants who were using Ramos’ house, in the 2000 block of East Atlantic Street in Philadelphia, as a center for illegal gun sales. Between February 2011 and August 2012, on multiple occasions, one or more of the co-conspirators agreed to sell a buyer a gun and, when the buyer pulled up in front of Ramos’ house, or other locations, delivered the gun to the buyer’s car window. In addition to Ramos’ house, the defendants were using a storage facility, in the 3500 block of North B Street, and a clothing store, in the 3900 block of Kensington Avenue, for purposes of conducting their illegal gun sales. The operation was brought to a halt by an undercover investigation involving the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Ramos pleaded guilty to conspiracy, gun trafficking, unlawfully making a weapon from a shotgun, two counts of unlawfully transferring a firearm, unlawful possession of a short-barreled shotgun, and 21 counts of being a felon in possession of a firearm. Ramos’ co-defendants Ruben Ramos, Dalvi Rodriguez, and Jim Cruz are awaiting sentencing; Co-defendants Daniel Ruiz, Hector Ortiz, Eddy Delacruz, and Miguel Massa are awaiting trial. In all, their operation sold 43 guns illegally, plus ammunition.
Ramos and his co-defendants were arrested with several other defendants charged in separate indictments as a result of the ATF investigation which also resulted in the seizure of more than five dozen guns and hundreds of rounds of ammunition.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is being prosecuted by Assistant United States Attorney Joseph Labar.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525New York Man Charged in Manhattan Federal Court for Illegal Possession of WeaponsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Joseph Anarumo, Jr., Special-Agent-in-Charge of the New York Division of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and Eric Timberman, the Acting United States Marshal for the Southern District of New York (“USMS”), announced today the filing of federal criminal charges against ANTONIO OLMEDA. OLMEDA, who was arrested by the New York City Police Department in December of 2011 in connection with his alleged attempt to shoot two police officers, faces federal charges for being a convicted felon in possession of various firearms, and for possessing unregistered machine guns and an unregistered short-barreled shotgun. OLMEDA, who remains in state custody, was charged in a six-count indictment on August 14, 2013, and was presented yesterday in Manhattan federal court before U.S. Magistrate Judge James C. Francis IV.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Antonio Olmeda, a convicted felon, possessed a veritable arsenal including multiple machine guns and a sawed-off shotgun. Olmeda, who has been separately charged in the state for shooting at police officers, was prohibited from having any firearms much less the kind of firepower alleged in the indictment at his disposal. This Office will continue to work with our partners to remove firearms from the hands of convicted criminals as the law and public safety demand.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, Antonio Olmeda illegally amassed an arsenal of weapons, to include semi-automatic handguns, machine guns and a shotgun. Gone undetected, these weapons, in the hands of a convicted felon, posed a danger not only to law enforcement, but to the unsuspecting public, who may have come in contact with Olmeda. His arrest demonstrates the ongoing commitment by the FBI and our law enforcement partners to keep the public safe by removing firearms from individuals who are not authorized to use or possess them.”
ATF Special Agent-in-Charge Joseph Anarumo, Jr. said: “The unlawful possession of firearms by a convicted felon is a federal violation that ATF takes very seriously as it threatens the safety of our city. ATF has had a long and productive relationship with our local, state and federal law enforcement partners in combating violent crime. Consequently, and as a united front, the arrest of these types of alleged violent offenders is now much more commonplace, making the collective goal of a safer community an attainable reality.”
Acting United States Marshal Eric Timberman said: “The Olmeda case is a shining example of the U.S. Marshals Service working closely with all agencies, federal, state, and local, to ensure the safety of our community and the administration of justice. These law enforcement partners will continue to work closely together in an effort to continue to take criminals and illegal weapons off our streets.”
According to the allegations in the Indictment filed in Manhattan federal court, OLMEDA, a convicted felon, possessed the following firearms, all of which have been seized by the Government:
- Springfield Armory Ultra Compact .45-caliber semi-automatic handgun
- Taurus 85 Ultralite .38-caliber revolver
- Olympic Arms PCR03 .223-caliber fully-automatic rifle
- Smith & Wesson .40-caliber semi-automatic pistol
- Beretta 92SB Compact 9-mm Luger semi-automatic pistol
- Cobray Industries M-11 9-mm Luger fully-automatic pistol
- Remington model Mohawk 600 .308-caliber rifle
- Roggio Arsenal model RA-15 rifle receiver/frame
- Interarms rifle
- Springfield Armory model 1911A1 .45-caliber pistol
- Springfield Armory model 1911A1 .45-caliber pistol
- Springfield Armory model 1911A1 .45-caliber pistol
- Sig Sauer model SP 2022 9mm-caliber pistol
- Taurus model PT140 Millenium .40-caliber pistol
- Smith & Wesson model 4006 .40-caliber pistol
- Star Bonifacio Echeverria model Firestar 9mm-caliber pistol
- Charter Arms model Police Undercover .32-caliber revolver
- Walther model PPK/S .380-caliber pistol
- Vulcan Arms model V15 7.62x39mm-caliber machinegun
- Norinco AK-type 7.62x39mm-caliber machinegun
- Mossberg model 500A 12-gauge shotgun
OLMEDA, 55, of New York, New York, is charged with three counts of possession of firearms by a convicted felon, two counts of possession of unregistered machine guns, and one count of possession of an unregistered short-barreled shotgun. Each count carries a maximum sentence of 10 years in prison. OLMEDA faces a maximum sentence of 60 years in prison.
In addition, OLMEDA is separately charged by the state with two counts of attempted murder in the first degree, two counts of attempted assault on a police officer with a deadly weapon, one count of criminal possession of a weapon in the second degree, and two counts of attempted assault in the first degree, all arising from his alleged attempt to shoot two police officers in Queens, New York on December 2, 2011.
The charges and arrest of OLMEDA are the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York, the Joint Terrorism Task Force – which principally consists of agents and detectives of the FBI and the New York City Police Department (“NYPD”) – the ATF, and the USMS. Mr. Bharara also thanked the NYPD and the Yonkers Police Department for their ongoing assistance.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The case is being handled jointly by the Office’s Violent Crimes Unit and Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Michael D. Maimin and John P. Cronan are in charge of the prosecution.
U.S. v. Antonio Olmeda Indictment
New Haven Man Sentenced to More Than Seven Years in Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MARK FULLER, 50, of New Haven, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 90 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.
FULLER 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 FULLER conspired with others to purchase and redistribute crack cocaine.
On January 28, 2013, FULLER pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of cocaine base (“crack”).
FULLER’s criminal history includes multiple felony convictions, including four felony drug convictions.
FULLER has been detained in federal custody since his arrest on May 17, 2012.
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]New Haven Man Guilty of Federal Firearm OffenseRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that a federal jury in New Haven has found TYRON HAMMOND, 31, of New Haven, guilty of possession of ammunition by a previously convicted felon. The trial before U.S. District Judge Janet C. Hall began on August 26 and the jury returned the verdict yesterday afternoon.
According to the trial evidence, on December 11, 2012, the U.S. Marshals Service Violent Fugitive Task Force, executing a state arrest warrant, arrested HAMMOND at an apartment on Chambers Street in New Haven. A subsequent court-authorized search of the apartment revealed a fully-loaded .22 caliber revolver with one expended casing.
The Connecticut Department of Emergency Services and Public Protection’s Forensic Science Laboratory determined that HAMMOND’s DNA was on both the firearm and the ammunition.
Although the revolver was manufactured in Connecticut and could not be traced due to its age, the ammunition in the firearm was manufactured in Idaho.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
HAMMOND’s criminal history includes a 2004 federal conviction for possession of a firearm by a previously convicted felon. That conviction stemmed from an incident in November 2003 when HAMMOND shot and injured an individual with a .44 caliber revolver in the Farnam Court housing complex in New Haven. HAMMOND was also convicted in state court of first degree assault in relation to the shooting.
In December 2004, HAMMOND was sentenced in U.S. District Court to 10 years of imprisonment. He was released from federal prison in July 2012.
Judge Hall has scheduled sentencing for November 21, 2013, at which time HAMMOND faces a maximum term of imprisonment of 10 years. HAMMOND also faces up to two years of imprisonment for violating the terms and conditions of his supervised release from his prior federal conviction.
This matter was investigated Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service Violent Fugitive Task Force and the New Haven Police Department. This case is being prosecuted by Assistant United States Attorney Anthony E. Kaplan, with the assistance of law student intern Allison Gorsuch.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Nampa Man Arrested on Federal Drug ChargeRead the Press Release
BOISE – Timothy Alan Butterbaugh, 45, of Nampa, Idaho, was arrested yesterday on a federal complaint charging him with distributing methamphetamine, U.S. Attorney Wendy J. Olson announced.
The complaint, filed in United States District Court on Wednesday, charges Butterbaugh with distributing methamphetamine on July 24, 2013. Butterbaugh was arrested last night at his residence in Nampa. Federal agents and local officers executed a search warrant at his residence along with two other locations in Nampa. The warrants were served by the FBI, Treasure Valley Metro Violent Crime Task Force, Canyon County Sheriff's Office, Nampa City Police Department, and Meridian City Police Department.
If convicted, Butterbaugh faces a maximum penalty of twenty years in prison, a maximum fine of $1,000,000, and at least three years of supervised release.
An initial appearance is set for August 30, 2013, at the federal courthouse in Boise. A preliminary hearing will be scheduled at that time.
The case is being investigated by the Treasure Valley Metro Violent Crimes Task Force, which is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and the Idaho Department of Correction.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
A complaint is only an allegation of criminal conduct and is not evidence of guilt. A person is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mexican National Sentenced in East Texas Meth ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsMARSHALL, Texas – A 29-year-old Sinaloa, Mexico man currently residing in Marshall, Texas, has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Joeli Higuera Fernandez pleaded guilty on May 3, 2013, to conspiracy to possess with intent to distribute and distribution of methamphetamine and was sentenced to 70 months in federal prison on Aug. 28, 2013, by U.S. District Judge Rodney Gilstrap. Fernandez was also ordered to submit to forfeiture of $15,000 in currency.
According to information presented in court, from March 2010 to October 2012, Fernandez was involved in a conspiracy to possess and distribute methamphetamine in the Eastern District of Texas. Fernandez admitted to distributing 101.7 grams of actual methamphetamine during this time. A federal grand jury returned an indictment on Nov. 7, 2012, charging Fernandez and three others with drug trafficking violations.
This case was investigated by the Federal Bureau of Investigation, the Marshall Police Department and the Harrison County District Attorney’s Office and prosecuted by Assistant U.S. Attorney Allen Hurst.
Mexican National Pleads Guilty to Trafficking Methamphetamine in San Juan CountyRead the Press Release
ALBUQUERQUE – Pricilio Garcia-Jimenez, 40, a Mexican national who resided in Farmington, N.M., entered a guilty plea late yesterday afternoon to methamphetamine trafficking charges. Under the terms of his plea agreement, Garcia-Jimenez will be sentenced to 108 months in federal prison. Garcia-Jimenez, who was in the United States without authorization at the time of his arrest, will be deported after he completes his prison sentence.
Garcia-Jimenez was arrested on May 22, 2012, on a criminal complaint alleging that he sold methamphetamine to an undercover officer in April 2012, in San Juan County, N.M. Garcia-Jimenez has been in custody since that time. In July 2012, Garcia-Jimenez was indicted and charged with distributing methamphetamine in San Juan County on five separate occasions between Nov. 2011 and April 2012.
During this afternoon’s plea hearing, Garcia-Jimenez pleaded guilty to four of the five counts in the indictment and an information charging him with distribution of methamphetamine, and admitted distributing methamphetamine for profit in San Juan County, N.M. In his plea agreement, Garcia-Jimenez admitted distributing methamphetamine to an undercover officer on five separate occasions between Nov. 2011 and April 2012. He further admitted distributing methamphetamine to others on four occasions between Sept. 2011 and Nov. 2011.
Garcia-Jimenez remains in federal custody pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of Homeland Security Investigations (HSI) and the HIDTA Region II Narcotics Task Force and is being prosecuted by Assistant U.S. Attorney Nicholas J. Ganjei.
The Region II HIDTA Narcotics Task Force is comprised of officers from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department. It is part of the High Intensity Drug Trafficking Areas (HIDTA) program which was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Mexican Couple Sentenced for Harrison County Drug TraffickingRead the Press Release
Department of Justice
Office of Public AffairsMARSHALL, Texas – A couple from Mexico currently residing in Marshall, Texas, have been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Julia Flores Saucedo, 33, of Guerrero, Mexico, pleaded guilty on Jan. 20, 2013, to possession with intent to distribute and distribution of methamphetamine and was sentenced to 46 months in federal prison on Aug. 28, 2013, by U.S. District Judge Rodney Gilstrap.
Her common-law husband, Oscar Diaz-Mendoza, 35, of Guerrero, Mexico, pleaded guilty on Feb. 28, 2013, to possession with intent to distribute and distribution of methamphetamine and was sentenced to 46 months in federal prison on Aug. 28, 2013, Judge Gilstrap.
According to information presented in court, from July 2011 to October 2012, the couple was involved in a conspiracy to possess and distribute methamphetamine in the Eastern District of Texas. Saucedo admitted to distributing 14.7 grams of methamphetamine on Aug. 24, 2011, in Marshall, Texas. Diaz-Mendoza admitted to distributing 15 grams of methamphetamine on Aug. 4, 2011, in Karnack, Texas.
A federal grand jury returned an indictment on Oct. 3, 2012, charging the couple and Melecio Nunez-Duque with drug trafficking violations. Nunez-Duque pleaded guilty on Aug. 6, 2013, to distributing 59.6 grams of methamphetamine and is awaiting sentencing.
This case was investigated by the Federal Bureau of Investigation, the Marshall Police Department and the Harrison County District Attorney’s Office and prosecuted by Assistant U.S. Attorney Allen Hurst.
Memphis Police Officer James Erwin Indicted for Being an Unlawful User of Cocaine in Possession of A FirearmRead the Press Release
Memphis, TN – James Erwin, 39, of Memphis, TN, an officer with the Memphis Police
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Department, was indicted today by a federal grand jury for possessing a firearm while being an
unlawful user of, and addicted to, cocaine base.
According to a criminal complaint filed on August 28, 2013, agents with the Bureau of Alcohol,
Tobacco, Firearms and Explosives interviewed Erwin, who admitted to using a controlled
substance for four months, including August 27, 2013, when he took his work-issued Sig Sauer
pistol to a friend’s house. An individual advised Memphis Police Department officers that he
has sold cocaine base to Erwin for several years, and that on August 27, 2013, that individual
took several of Erwin’s personal items as security for Erwin’s crack cocaine debt.
If convicted, Erwin faces up to ten years in prison, a fine of up to $250,000 and supervised
release of up to three years. This case was investigated by the Project Safe Neighborhoods
initiative, which is made up of officers from the Memphis Police Department (MPD), the Shelby
County Sheriff’s Department (SCSD), and the Bureau of Alcohol, Tobacco, Firearms, and
Explosives (ATF). Assistant U.S. Attorney Jennifer Webber is representing the government.
The charges and allegations contained in the indictment are merely accusations, and the
defendant is considered innocent unless and until proven guilty.Man from Oelwein Sentenced for Attempted Enticement of A Minor in EldridgeRead the Press Release
DAVENPORT, IA – On August 22, 2013, Steven William Bentley, age 53, from Oelwein, Iowa, was sentenced by Chief United States District Judge James E. Gritzner to 121 months in prison for attempted enticement of a minor, announced United States Attorney Nicholas A. Klinefeldt. Judge Gritzner also ordered Bentley to serve 10 years of supervised release following imprisonment and to pay $100 towards the Crime Victims Fund.
Bentley’s conviction resulted from a criminal trial held in Davenport, Iowa, in May of 2013. The evidence showed that between June 27, 2012 and July 25, 2012, Bentley, a self-employed businessman from Oelwein, chatted on-line with an agent from the Iowa Internet Crimes Against Children Task Force who was posing as a minor female. On or about July 19, 2012, Bentley arranged a meeting with the purported minor, traveled to Eldridge, Iowa, to meet her, however no meeting occurred. Bentley returned on July 25, 2013, to meet the purported minor, and he was arrested shortly after arriving at the meeting location.
This case was investigated by the Iowa Internet Crimes Against Children Task Force, the Scott County Sheriff’s Office, the DeWitt, Iowa, Police Department, the Clinton County Sheriff’s Office, the Davenport, Iowa, Police Department and the Eldridge, Iowa, Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Local Man Gets 10 Years for MethamphetamineRead the Press Release
CORPUS CHRISTI, Texas - A Corpus Christi man will be serving a significant sentence in federal prison following his conviction of one count of conspiracy to possess with intent to distribute more than 50 grams of methamphetamine, United States Attorney Kenneth Magidson announced today. Jerame Cruz, 30, pleaded guilty Jan. 11, 2013.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Cruz to a total of 120 months in prison to be followed by a five-year-term of supervised release.
In August 2012, law enforcement officials executed two search warrants at residences in Corpus Christi. At that time, officers seized approximately 339 grams of methamphetamine as well as $13,000, a .223 caliber rifle, a .380 caliber pistol and approximately 175 rounds of various caliber ammunition. Laboratory analysis determined the methamphetamine had a purity of more than 92%.
In federal custody since his arrest, Cruz will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
The FBI - Safe Streets Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives as well as the Corpus Christi Police Department Gang Unit investigated.
This case was prosecuted by Assistant U.S. Attorney Lance Watt.
tenance and transportation supervisor for PISD, maintained political control in Progreso through his sons Omar Vela, the mayor of Progreso, and Michael Vela, president of the PISD Board of Trustees. The indictment charges that Jose Vela controlled members of the PISD Board of Trustees through a system of reward and retaliation. That is, board members who voted as directed by Jose Vela were allegedly rewarded with bribe money, but those who did not follow his direction were faced with retaliation.
According to the Indictment, from 2004 to 2006, the construction company paid Omar Vela approximately $85,000 in bribes in order to be hired on projects in Progreso, including the construction of an elementary school, a school gymnasium and a municipal park. The indictment further indicates that in 2008 and 2009 the attorney paid nearly $10,000 to the three defendants in order to be hired as local counsel for PISD.
The Indictment also alleges that from 2009 to 2012, Omar Vela instructed the owner of the electrical and plumbing supply company to provide fraudulent invoices to PISD and the City of Progreso for products that were not supplied. When the invoices were paid, Omar Vela allegedly instructed the owner of the supply company to return the funds to Omar Vela as kickbacks. Through this scheme, Omar Vela is alleged to have stolen more than $14,000 from the City of Progreso and PISD.
If convicted, each face up to 20 years in prison for mail fraud, five years for the conspiracy, 10 years for each of the bribery and theft involving federal programs, and five years for each of the six counts of violations of the travel act. All charges also carry a possible maximum fine of $250,000.
The investigation was conducted by the FBI. Assistant United States Attorney Robert S. Johnson is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Lincoln Man Found Guilty of Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that Ricardo Omar Hernandez, age 36 of Lincoln, Nebraska, was convicted by a federal jury on August 29, 2013, of conspiracy to distribute 500 grams or more of methamphetamine mixture and 5 grams or more of pure methamphetamine after a trial of three-and-one-half days. The jury also found that Hernandez should forfeit $12,914.00 in cash to the United States.
Hernandez was indicted on the conspiracy charge in June of 2013. He is scheduled for sentencing on November 26, 2013. If he is found to have a prior felony drug conviction, he faces a sentence of at least 20 years to life imprisonment and a fine of up to $20,000,000. Otherwise, the potential penalty is 10 years to life imprisonment and a fine of up to $10,000,000.
Evidence presented at trial indicated that between January of 2011 and February 23, 2013, Hernandez was involved with persons who were distributing methamphetamine in the Lincoln, Beatrice, and Omaha areas. Witnesses testified at trial that Hernandez obtained methamphetamine from sources in Omaha and Lincoln. He sold methamphetamine to persons in Lincoln. Some of Hernandez’s customers sold methamphetamine in Lincoln. One customer sold methamphetamine in Beatrice.
On February 23, 2013, a search warrant was served by the Lincoln Police Department at Hernandez’s Lincoln apartment. During that search, officers found 17.41 grams of methamphetamine which was determined to be at least 95% pure along with $12,914.00 in cash.
The matter was investigated by the Lincoln/Lancaster County Narcotics Task Force, which includes the Lincoln Police Department Narcotics Unit and investigators from the Lancaster County Sheriff’s Department and the UNL Police Department, and assistance was also provided by the Nebraska State Patrol and the Federal Bureau Investigation, (FBI).League City Texas Man Sentenced on Drug and Money Laudering Conspiracy ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Will Johnson, 32, of League City, Texas, who was convicted of conspiracy to distribute kilograms of cocaine and conspiracy to commit money laundering, was sentenced to 10 years in prison and five years supervised release by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case stated that Johnson, formerly of Buffalo, distributed kilograms of cocaine from the Houston area to other individuals who thereafter distributed that cocaine in Buffalo and elsewhere in the Western New York. In July, 2010, during a wiretap investigation, law enforcement officers executed search warrants at locations including an apartment leased by the defendant in Missouri City, Texas, and his residence at 1546 Viejo Drive, in League City, Texas. Officers seized cocaine and plastic wrappers consistent with packaging for multiple kilograms of cocaine, $55,000 in U.S. currency, a .44 caliber loaded handgun, and boxes of assorted ammunition.
Johnson also deposited and transferred funds generated as a result of his drug trafficking through and to financial institutions. For instance, the defendant paid approximately $13,000 to a used car lot (Maxx Auto Sales) in Buffalo to purchase a 2004 Escalade motor vehicle. Johnson also arranged to have cash deposits of $20,000, proceeds from his unlawful distribution of cocaine, made into bank accounts. The funds were then used as a down payment for the defendant’s residence at 1546 Viejo Road in League City, Texas. As part of his sentence, Johnson will forfeit $203,000 in cash.
This conviction is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Steven L. Lanser, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent- in-Charge Toni M. Weirauch, and the Niagara County Drug Enforcement Task Force, under the direction of Sheriff James Votour.
Johnson is one of the 20 defendants convicted as a result of this drug investigation.Le Center Man Sentenced for Receiving Child PornographyRead the Press Release
MINNEAPOLIS—Late yesterday in federal court, a 47-year-old Le Center man was sentenced for receiving several videos containing child pornography. On August 28, 2013, United States District Judge David S. Doty sentenced Harold Duane Davenport to 60 months in prison on one count of receipt of child pornography. Davenport was indicted on November 5, 2012, and pleaded guilty on March 20, 2013.
In his plea agreement, Davenport admitted that from September 16, 2009, through February 6, 2010, he knowingly received visual depictions via the Internet that involved minors engaged in sexually explicit conduct. In addition, Davenport admitted that he possessed more than 600 images of child pornography, including images and videos portraying sadistic or masochistic conduct or other depictions of violence.
This case was the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the LeSueur County Sheriff’s Office, and the Minneapolis Police Department. It was prosecuted by Assistant U.S. Attorney Nathan P. Petterson.Receipt of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is presently funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”Larry Shane Morgan Sentenced to Serve 447 Months for Armed RobberiesRead the Press Release
GREENEVILLE, Tenn. – On Aug. 29, 2013, Larry Shane Morgan, 37, of Greeneville, Tenn., was sentenced to serve 447 months in prison by the Honorable Leon Jordan, U.S. District Judge. Following an October 2012 jury trial, Morgan was convicted of the June 2012 robbery by force of the Stop and Go Market in Chuckey, Tenn.; the July 2012 armed robbery of the Greeneville Federal Bank on the Andrew Johnson Highway; and being a convicted felon in possession of ammunition.
Morgan was sentenced to an additional 24 months for violation of supervised release on a prior federal conviction, for a total effective sentence of 471 months in prison. Upon his release from prison he will be subject to supervised release for five years. Morgan was further ordered to pay restitution to the victims of his crimes.
Federal law mandates a five year minimum mandatory sentence for possession of a firearm in the commission of a violent offense, with each additional offense of possession of a firearm in the commission of a violent offense carrying a 25 year minimum mandatory sentence.
Law enforcement agencies participating in the joint investigation include the Greeneville Police Department, Greene County Sheriff=s Department, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Johnson City Police Department, Tennessee Bureau of Investigation Crime Lab, and Sullivan County Sheriff=s Department dive team. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Justice Department Announces Update to Marijuana Enforcement PolicyRead the Press Release
Today, the U.S. Department of Justice announced an update to its federal marijuana enforcement policy in light of recent state ballot initiatives that legalize, under state law, the possession of small amounts of marijuana and provide for the regulation of marijuana production, processing, and sale.
In a new memorandum outlining the policy, the Department makes clear that marijuana remains an illegal drug under the Controlled Substances Act and that federal prosecutors will continue to aggressively enforce this statute. To this end, the Department identifies eight (8) enforcement areas that federal prosecutors should prioritize. These are the same enforcement priorities that have traditionally driven the Department’s efforts in this area.
Outside of these enforcement priorities, however, the federal government has traditionally relied on state and local authorizes to address marijuana activity through enforcement of their own narcotics laws. This guidance continues that policy.
For states such as Colorado and Washington that have enacted laws to authorize the production, distribution and possession of marijuana, the Department expects these states to establish strict regulatory schemes that protect the eight federal interests identified in the Department’s guidance. These schemes must be tough in practice, not just on paper, and include strong, state-based enforcement efforts, backed by adequate funding. Based on assurances that those states will impose an appropriately strict regulatory system, the Department has informed the governors of both states that it is deferring its right to challenge their legalization laws at this time. But if any of the stated harms do materialize—either despite a strict regulatory scheme or because of the lack of one—federal prosecutors will act aggressively to bring individual prosecutions focused on federal enforcement priorities and the Department may challenge the regulatory scheme themselves in these states.
A copy of the memorandum, sent to all United States Attorneys by Deputy Attorney General James M. Cole, is available below.
Related Materials:
DAG Memo 8-29-13
Johnstown Woman Possessed Crack Cocaine Intending to Sell ItRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of possession with the intent to distribute cocaine base, commonly known as "crack," United States Attorney David J. Hickton announced today.
Ebony R. Thorne, 30, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Oct. 31, 2012, Thorne possessed less than 28 grams of cocaine base with the intent to distribute it.
Judge Gibson scheduled sentencing for Feb. 4, 2014, at 11 a.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Thorne.
Johnson County Man Sentenced to Prison for Counterfeiting U.S. Postage Meter StampsRead the Press Release
DES MOINES, IA – On August 28, 2013, David Nelson Chasse, age 43, of North Liberty, Iowa, was sentenced by Senior United States District Robert W. Pratt to four months of prison and six months of home confinement for possession with intent to use, make, print and use about $59,414 in forged and counterfeited postage meter stamps, announced United States Attorney Nicholas A. Klinefeldt. Judge Pratt also ordered Chasse to serve three years of supervised release following completion of the imprisonment, pay $59,989.87 in restitution, and to pay $100 towards the Crime Victims Fund.
Chasse obtained U. S. postage on-line for use in his business: The Birthday Company Incorporated. The United States Postal Inspection Service monitored the postage being used on The Birthday Company’s mailings and determined that some of it was counterfeit. On September 16, 2010, a federal search warrant was executed at Chasse’s residence where several thousand dollars of counterfeit metered postage stamps were seized. The investigation revealed that Chasse photocopied the sheets of postage and used the counterfeited postage for business mailings.
This case was investigated by the United States Postal Inspection Service, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Independence Man Sentenced for Meth, Assaulting OfficerRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man who bit a law enforcement officer during his arrest was sentenced in federal court today.
Robert J. Lingle, 43, of Independence, was sentenced by U.S. District Judge Beth Phillips to five years in federal prison without parole.
On Jan. 4, 2013 Lingle pleaded guilty to possessing five grams or more of methamphetamine with the intent to distribute and to assaulting a federal law enforcement officer. Lingle admitted that he agreed to sell methamphetamine to a source who was cooperating in a law enforcement investigation. When officers approached Lingle he fled.
During the foot chase, Lingle removed a loaded Rohm .22-caliber revolver from his pants. Officers ordered him to drop the weapon, at which time he did and continued to run. An officer grabbed Lingle and a struggle ensued. Lingle attempted to eat the plastic bags of methamphetamine, but the officer was able to remove the narcotics from his mouth and toss them aside. Lingle then grabbed the officer’s arm and intentionally bit him on his hand, breaking skin and drawing blood.
This case was prosecuted by Special Assistant U.S. Attorney Leena Ramana. It was investigated by Homeland Security Investigations and the Kansas City, Mo., Police Department.Illinois Man Pleads Guilty to Tax Fraud Related to Embezzlement from Indonesian Airline- Admits Failure to Report $284,500 in Income -Read the Press Release
WASHINGTON - Alan Messner, 41, of Rolling Meadows, Illinois, pled guilty today in the U.S. District Court for the District of Columbia to one count of tax evasion related to his failure to report $284,500 in income he received in 2006 and 2007.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
As part of his guilty plea, Messner admitted that, in December 2006, he and Jon C. Cooper induced an Indonesian airline company to pay them a $1 million security deposit to lease two aircraft using various false and fraudulent pretenses, representations, and promises – including forged and fraudulent documents. Messner admitted that, after Cooper received the $1 million security deposit, Cooper transferred $284,500 to Messner in December 2006 and January 2007. Messner spent that portion for his own personal benefit. Likewise, Cooper spent the balance of the security deposit for his own personal benefit. Cooper and Messner did not provide the promised aircraft and did not return any funds to the Indonesian airline company.
Messner admitted that he did not report any portion of the $284,500 on his federal income tax returns for either tax year. As a result of Messner’s tax evasion, Messner caused a tax loss of $62,231.60 to the United States.
Messner is scheduled to be sentenced on December 13, 2013, before the Honorable Amy Berman Jackson. On the tax evasion charge, Messner faces a maximum sentence of five years in prison and a $250,000 fine. In addition, as part of his guilty plea, Messner agreed to pay the full $62,231.60 owed to the United States.
In the related case, Cooper is scheduled for trial on Jan. 21, 2014, also in the U.S. District Court for the District of Columbia. In April 2013, a grand jury returned a superseding indictment against Cooper, charging him with conspiracy, first-degree fraud, wire fraud, and money laundering related to the embezzlement from the Indonesia airline. The superseding indictment against Cooper also includes counts of bank fraud, making a false statement on a loan application, and aiding or assisting the filing of a false tax return. The superseding indictment reincorporates a forfeiture allegation seeking all proceeds obtained through the wire fraud and money laundering scheme. Cooper, 64, of Washington, D.C, has pled not guilty to those charges.
According to the superseding indictment, in or about December 2006, Cooper and Messner offered to lease two aircraft to an Indonesian airline company, although their company owned no such aircraft. Instead, Cooper induced the Indonesian airline to agree to the deal - and pay a $1 million security deposit - by using a forged letter from an attorney whom Cooper claimed would hold the deposit. Similarly, Cooper allegedly used a forged letter purporting to represent that Cooper’s company had an agreement to buy the aircraft it would lease to the Indonesian airline. As the superseding indictment charges, based on those and other false representations, the Indonesian airline made the $1 million security deposit. But the very day the security deposit was received, Cooper moved it to his personal account. Cooper then spent it on personal expenses, such as his credit card debt and personal loans.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
The case is being investigated by the FBI’s Washington Field Office and the Washington Field Office of IRS-CI. It is being prosecuted by the U.S. Attorney’s Office for the District of Columbia.
13-296Huntsville Man Indicted for Series of Bank RobberiesRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted a Huntsville man for 11 robberies or attempted robberies at banks across north central and north western Alabama, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.An indictment filed in U.S. District Court charges CEDRICK LAMOND HICKS, 32, with nine counts of bank robbery and two counts of attempted bank robbery. In all, the banks were robbed of more than $43,000. Most of the charges are for robberies or attempted robberies in 2012, while one charge is for a 2006 bank robbery and two are for bank robberies this year.
The date, location and amount of money stolen are as follows, according to the indictment:
• Dec. 13, 2006, Regions Bank, Madison Street, Huntsville, $3,074.
• Feb. 22, 2012, Regions Banks, Madison Street, Huntsville, $2,870.
• March 23, 2012, First Jackson Bank, Sutton Road, Huntsville, $1,894.
• April 30, 2012, Renasant Bank, U.S. 72 West, Madison, $3,500.
• Aug. 2, 2012, Peoples Bank, U.S. 431 South, Guntersville, $890.
• Aug. 8, 2012, Traditions Bank, Alabama 67 South, Decatur, $7,243.
• Nov. 27, 2012, Regions Banks, Lee Street, Rogersville, $8,009.
• Jan. 7, 2013, Peoples Trust Bank, Military Street South, Hamilton, $9,000.
• March 6, 2013, ServisFirst Bank, Meridian Street, Huntsville, $6,575.The attempted bank robberies were on Sept. 18, 2012, at Cadence Bank, U.S. 431, Albertville, and on Nov. 26, 2012, at Traditions Bank, Second Avenue NW, Cullman.
The maximum penalty for each robbery count is 20 years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Mary Stuart Burrell is prosecuting.
The public is reminded than an indictment contains only charges. A defendant is presumed innocent and it will be the government's responsibility to prove the defendant's guilt beyond a reasonable doubt at trial.
Houston Based Principal of A&O Entities Resentenced in Virginia for $100 Million Fraud SchemeRead the Press Release
RICHMOND, Va.– A principal of A&O Resource Management Ltd. has been resentenced for his role in a $100 million life settlement fraud scheme, which included more than 800 victims across the United States and Canada. Today, Adley H. Abdulwahab, 38, of Houston, a hedge fund manager and part owner of A&O, was resentenced to 60 years in prison.
Abdulwahab originally was sentenced to 60 years in prison on September 28, 2011. On April 29, 2013, the United States Court of Appeals for the Fourth Circuit reversed five of Abdulwahab’s money laundering convictions. Today United States District Judge Robert E. Payne resentenced Abdulwahab to the same term of imprisonment on the remaining counts of conspiracy, mail fraud, and securities fraud.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General of the Justice Department’s Criminal Division;
Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service; Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation; and Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by Judge Payne.On September 7, 2010, a federal grand jury returned an 18-count indictment against Abdulwahab, Christian Allmendinger, 40, and David White, 41. White and four others associated with the fraud scheme pleaded guilty in the fall of 2010. Allmendinger was convicted at trial on March 23, 2011, and Abdulwahab was convicted at trial on June 10, 2011.
According to court records and evidence presented at trial, the principals at A&O engaged in a scheme to defraud investors by making misrepresentations about such things as A&O’s prior success, its size and office locations, its number of employees, the risks of its investment offerings, and its safekeeping and use of investor funds. Both Abdulwahab and Allmendinger were active in the day-to-day management of the companies, as well as in the marketing of A&O life settlement investment products to investors. Abdulwahab also lied to investors about having a college degree in economics, as well as failing to disclose to investors that he previously pleaded guilty to a felony charge of forgery of a commercial instrument in Texas state court.
When state regulators began to scrutinize A&O’s investment products, Abdulwahab and others manufactured a sham sales transaction to “sell” A&O to a shell corporate entity named Blue Dymond and later to another shell corporate entity named Physician’s Trust. This sale ended Allmendinger’s association with the fraud scheme; however, A&O and Physician’s Trust were still secretly controlled by Abdulwahab and his co-conspirators, who continued the fraud scheme through September 2009. The A&O fraud scheme caused more than 800 investors, many of whom were elderly, to lose more than $100 million. The vast majority lost all of their investment, which represented for many all of the money they had saved for their retirement.
Evidence at trial showed that Abdulwahab and the other A&O principals used the investors’ money for personal enrichment, including purchasing multi-million dollar homes, luxury cars, a 15-carat diamond ring and other property.
On September 27, 2011, Allmendinger was sentenced to 45 years in prison. On June 22, 2011, five other individuals connected with the A&O fraud scheme were sentenced: Russell E. Mackert, 52, general counsel for A&O, was sentenced to 188 months in prison; Brent Oncale, 36, former owner and founder of A&O, was sentenced to 120 months in prison; White, the former president of A&O, was sentenced to 60 months in prison; Eric M. Kurz, 47, a wholesaler of A&O investment products, was sentenced to 60 months in prison; and Tomme Bromseth, 69, an A&O sales agent in the Richmond area, was sentenced to 36 months in prison.
This investigation was conducted by the U.S. Postal Inspection Service, Internal Revenue Service, and FBI, with significant assistance from the Texas State Securities Board, the Virginia Corporation Commission and the SEC. These cases are being prosecuted by Assistant U.S. Attorneys Michael S. Dry and Jessica D. Aber from the Eastern District of Virginia and Trial Attorney Albert B. Stieglitz Jr., of the Criminal Division’s Fraud Section.
The investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia. The task force is an investigative arm of the President’s Financial Fraud Enforcement Task Force, an interagency national task force.
President Obama established the Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
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.Honduran Sentenced to 8 Months in Prison for Reentering the United States IllegallyRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that Marco Tulio Sanabria-Caceres, 25, of Honduras, was sentenced by U.S. District Judge Patricia Minaldi to eight months in prison for reentering the United States after being deported.
According to evidence presented at the guilty plea, on Sept. 18, 2012, U.S. Border Patrol agents conducted a traffic stop on a vehicle containing five individuals. They all admitted to being in the United States illegally. Sanabria-Caceres admitted to being from Honduras. After further investigation, it was learned that Sanabria-Caceres was convicted on Feb. 10, 2012 in Leesburg, Va., on two counts of a Class IV felony, which was carnal knowledge of a juvenile. He was sentenced to serve two years with part of the sentence suspended for the two counts and was deported June 1, 2012. Sanabria-Caceres admitted to reentering the United States without permission and pleaded guilty to the charge May 29, 2013.
Homeland Security Investigations and the U.S. Border Patrol conducted the investigation. Assistant U.S. Attorney Howard C. Parker prosecuted the case.Hartford Man Sentenced to 37 Months in Federal Prison for Role in Illegal Gun SalesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MIGUEL ORTIZ, 48, of Hartford, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 37 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms and ammunition.
According to court documents and statements made in court, between December 2011 and April 2012, ORTIZ stored firearms for his 19-year-old nephew, Johnny Rosa, and assisted Rosa in the illegal sale of those firearms. ORTIZ is a felon who has prior convictions for firearms and narcotics offenses.
In May 2012, a search of ORTIZ’s Maple Avenue residence revealed an assortment of ammunition.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On January 17, 2013, ORTIZ pleaded guilty to one count of possession of a firearm and ammunition by a convicted felon.
On November 9, 2012, Rosa, also known as “Johnny J,” pleaded guilty to one count of transferring a firearm to a prohibited person. On May 28, 2013, he was sentenced to 36 months of imprisonment.
This matter was investigated by Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Connecticut State Police, Hartford Police Department, Connecticut Department of Correction and Connecticut National Guard.
This case was prosecuted by Assistant United States Attorney Brian P. Leaming.
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[email protected]Hallandale Beach Tax Preparer Sentenced for Filing False Tax Returns on Behalf of Himself and His ClientsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigations (IRS-CI), announce that defendant Efrain Felipe, 41, of Hallandale Beach, was sentenced today before U.S. District Judge Robert N. Scola Jr. Defendant Felipe was sentenced to 18 months of imprisonment, to be followed by one year of supervised release. In addition, Felipe was ordered to pay restitution to the Internal Revenue Service in the amount of $17,989. Felipe previously pled guilty to a two-count Information, charging him with making and subscribing a false tax return on behalf of a client, and aiding and abetting, in violation of Title 26, United States Code, Sections 7206(1) and 7206(2).
According to court documents and statements made in court, Felipe operated a tax preparation business in Broward County, and prepared tax returns on behalf of his customers, falsely claiming that some customers were entitled to a First Time Home Buyers Credit (FTHBC) of $7,500 for properties they did not own or for properties that were purchased years earlier. Felipe also falsely claimed the FTHBC on his own personal tax return.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant U.S. Attorney Norman O. Hemming, III.
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.
Geoff Billips Sentenced to Serve 104 Months in Prison for Armed RobberyRead the Press Release
GREENEVILLE, Tenn. – Geoff Billips, 36, of Bluff City, Tenn., was sentenced on Aug. 28, 2013, to serve 104 months in prison, by the Honorable J. Ronnie Greer, U.S. District Judge. Upon his release from prison, Billips will be subject to probation under the supervision of the U.S. Probation Office for five years.
Billips pleaded guilty in April 2013 to the armed robbery of the Check Into Cash business on Volunteer Parkway in Bristol, Tenn., and to brandishing a firearm in furtherance of the robbery. Because he brandished a firearm in furtherance of the robbery, he faced a minimum 84 month sentence up to life in prison for the firearm charge alone.
Law enforcement agencies participating in the joint investigation which led to the indictment and subsequent conviction of Billips include the Bristol Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Federal Bureau of Investigation (FBI). Assistant U.S. Attorney J. Gregory Bowman represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Funds Obtained in $4,078,713.00 Forfeiture Case Shared with Local and State Law Enforcement from Tennessee, North Carolina and CaliforniaRead the Press Release
KNOXVILLE, Tenn. – On Aug. 29, 2013, a press conference was held at the U.S. Attorney’s Office in Knoxville, Tenn., to present 19 local and state law enforcement agencies with their share of funds forfeited in the case of U.S. v. Francisco Javier Cruz-Ramirez, et. al.
Agencies receiving forfeiture sharing funds in this case include:
Blount County Tennessee Sheriff's Office $ 69,813.93
City of Jacksonville North Carolina Police Department $157,081.34
City of Wilmington North Carolina Police Department $418,883.57
Cumberland County North Carolina Sheriff's Office $244,348.75
Duplin County North Carolina Sheriff's Office $209,441.79
Fayetteville North Carolina Police Department $244,348.75
Tennessee Fifth Judicial District Drug Task Force $ 34,906.97
Knox County Tennessee Sheriff's Office $ 69,813.93
Knoxville Tennessee Police Department $139,627.85
La Verne California Police Department $ 34,906.97
Lenoir City Tennessee Police Department $ 69,813.93
Metro Knoxville Airport Authority Police $ 69,813.93
Monterey Tennessee Police Department $ 34,906.97
North Carolina Department of Public Safety $349,069.64
Oak Ridge Tennessee Police Department $ 69,813.93
Sampson County North Carolina Sheriff Department $279,255.72
Tennessee Bureau Of Investigation $ 69,813.93
Tennessee Department Of Safety $ 69,813.93
Town of Leland North Carolina Police Department $157,081.34
This case involved an investigation of a Mexican drug trafficking organization. Evidence gained through a wiretap investigation led to agents being able to identify and stop a semi-truck being driven by Armando Guzman Villegas and Javier Cruz-Ramirez as it traveled west through the Eastern District of Tennessee on Interstate 40. The subsequent search of the contents of the truck revealed several pallets of shrink wrapped bottled water. One of the shrink wrapped pallets contained approximately $4.1 million in cash, contained in approximately 200 duct taped bundles, with approximately $20,000 in cash in each bundle.
Cruz-Ramirez pleaded guilty to aiding and abetting interstate transportation in aid of racketeering enterprises. He was sentenced to serve 60 months in prison, followed by three years of supervised release.
Villegas pleaded guilty to conspiracy to distribute five kilograms or more of cocaine and to aiding and abetting interstate transportation in aid of racketeering enterprises. He was sentenced to serve 60 months in prison, followed by five years of supervised release.
The court also ordered the forfeiture of $4,078,713.00 in cash.
In addition to the agencies receiving sharing checks, the Drug Enforcement Administration played a significant role in the investigation which led to the subsequent conviction and sentencing of these individuals. Assistant U.S. Attorney David Lewen represented the United States. Assistant U.S. Attorney Frank Dale assisted with the forfeiture.
The Department of Justice Asset Forfeiture Program is a nationwide law enforcement initiative that removes the tools of crime from criminal organizations, deprives wrongdoers of the proceeds of their crimes, recovers property that may be used to compensate victims, and deters crime. The most important objective of the Program is law enforcement. Equitable sharing further enhances this law enforcement objective by fostering cooperation among federal, state, and local law enforcement agencies. Any state or local law enforcement agency that directly participates in an investigation or prosecution that results in a federal forfeiture may request an equitable share of the net proceeds of the forfeiture.
Former Union Official Charged with Embezzling FundsRead the Press Release
PITTSBURGH, Pa. - A Beaver County resident has been indicted by a federal grand jury in Pittsburgh on a charge of union embezzlement, United States Attorney David J. Hickton announced today.
The one-count indictment named David L. Barr, 50, as the sole defendant.
According to the indictment, David L. Barr, while a Financial Secretary-Treasurer of the Local No. 99 of the Glass, Molders, Pottery, Plastics & Allied Workers International Union, AFL-CIO, CLC, stole approximately $5,688.40 from the union by cashing 19 employer dues remittance checks belonging to the labor organization and converting the monies to his own personal use during the period from April 9, 2010 through Sept. 22, 2011.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Department of Labor, Office of Labor Management Standards, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former North Carolina Probation Officer Sentenced for Coercing Probationer into Sexual ActsRead the Press Release
Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division and Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina, announced today that former North Carolina Department of Correction’s Division of Community Corrections Probation Officer Willie James Steele Jr., 43, has been sentenced for violating the constitutional rights of a female probationer that he was supervising by coercing her into sexual acts on two separate occasions.
According to an indictment and evidence presented in court, Steele supervised the female probationer in 2008 after her probation was transferred to North Carolina from another state and he had the authority to recommend to a court or other agency that the victim be incarcerated or otherwise sanctioned if she violated the conditions of her probation. On Dec. 12, 2012, after a two-day trial, a jury found Steele guilty of two civil rights violations for depriving the victim of her constitutional right to bodily integrity by having non-consensual sexual intercourse with her during two separate probation meetings.
Chief Judge Robert J. Conrad, who presided over the trial, sentenced Steele to serve the statutory maximum incarceration of 24 months in prison, to be followed by one year of supervised release, for his convictions at trial.
“Probation officers are given a great deal of power in order to carry out their critical responsibilities, but this officer abused that power and violated the civil rights of a woman under his supervision,” said Acting Assistant Attorney General Samuels. “We will vigorously prosecute any probation officer who uses his position of trust to prey upon those he supervises.”
“Any time a law enforcement officer breaks the law it undermines the public’s trust in the legal system and we will do everything we can to ensure that trust is not compromised,” said U.S. Attorney Tompkins. “My office will prosecute those who abuse their position of power and use it to violate the civil rights of others.”
This case was investigated by the FBI and the North Carolina State Bureau of Investigation, and is being prosecuted by the Assistant U.S. Attorney Kimlani Ford from the Western District of North Carolina and Trial Attorney Shan Patel from the Civil Rights Division.
Former Bookstore Manager Sentenced for Stealing $1.1 Million from Missouri State UniversityRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former manager of the Missouri State University bookstore was sentenced in federal court today for embezzling more than $1.1 million by pocketing the money from the school’s textbook buyback program.
Mark Brixey, 48, of Ozark, Mo., was sentenced by U.S. District Judge Gary A. Fenner to five years and three months in federal prison without parole. The court also ordered Brixey to pay $1,329,484 in total restitution to his victims, including $163,237 to Missouri State University, $166,247 to the Internal Revenue Service and $1 million to Zurich American Insurance Company.
On March 26, 2013, Brixey pleaded guilty to wire fraud, money laundering and filing a false tax return. Brixey, the manager of the MSU bookstore from 1998 to August 2012, admitted that he embezzled $1,163,237 from the student textbook buy-back program.
Brixey’s 10-year fraud scheme began in 2003 with the theft of nearly $29,000 and escalated each year, with more than $190,000 stolen during each of the last two full years of the scheme in 2010 and 2011. Brixey embezzled another $20,580 before he resigned in 2012.
Textbook Buyback Scheme
As manager of the MSU bookstore, Brixey handled all contacts related to the textbook buy-back program. At the close of each semester, MSU students had the opportunity to sell their used textbooks to Follett Educational Services, which contracted with MSU to administer the book buy-back program. Follett operated 10 textbook buy-back stations on the MSU campus during finals week in December and May of each year.
On the last day of each buy-back period, a Follett representative prepared a report that detailed how many textbooks were purchased and at what price. A Follett representative also calculated the commissions to be paid to MSU for allowing Follett to conduct the textbook buy-back program at the university. A Follett representative gave a sight draft/check to Brixey for payment of the commission to MSU (beginning in 2011, the Follett representative paid the commission in cash directly to Brixey).
Follett also purchased textbooks that were no longer used by MSU professors directly from the MSU bookstore. Similar to the textbook buy-back program, a Follett representative calculated the total amount to be paid to MSU for these books and gave a sight draft/check to Brixey. The bookstore also disposed of surplus textbooks by reselling them to textbook wholesalers, such as MBS Textbook Exchange, Inc., and Nebraska Book Company.
When Brixey received sight drafts/checks payable to MSU for these buy-back programs, he took those checks to the MSU bursar’s office. Brixey falsely claimed that the sight drafts/checks were needed to pay students for books purchased in the buy-back program. The bursar’s office relied upon Brixey’s misrepresentations and provided cash to Brixey.
Brixey did not record the cash received in the MSU Bookstore accounting system, but instead used the cash for his personal benefit.Count One: Wire Fraud
Brixey admitted that he executed the scheme to cause electronic transmissions related to the processing of sight drafts (in connection with the commissions and the purchase of textbooks).
Count Two: Money Laundering
Brixey admitted that he concealed his fraud scheme by disguising the proceeds through multiple financial transactions. Brixey routinely deposited the proceeds of his fraud scheme into Educational Credit Union accounts then transferred cash from those accounts to purchase and add value to certificates of deposit. Between Jan. 11, 2008, and July 16, 2012, Brixey made or caused to be made 55 transfers totaling $121,000 from Education Credit Union deposit accounts to Educational Credit Union certificates of deposit.
Count Three: Filing a False Tax Return
Brixey admitted that on April 15, 2011, he filed a tax return that failed to report approximately $194,521 in income received through the fraud scheme in 2010. Brixey also filed a tax return for 2011 that failed to report $192,202 of income from his fraud scheme and a tax return for 2009 that failed to report $166,354 of income from his fraud scheme.
Between 2009 and 2011, Brixey failed to report a total of $553,077 of income from his fraud scheme, resulting in a tax loss to the government of approximately $166,247 for those three years.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the U.S. Secret Service, IRS-Criminal Investigation, the Springfield, Mo., Police Department and the Greene County, Mo., Prosecuting Attorney.
Former Big Spring, Texas, Man Faces 10 Years in Federal Prison for E-Mailing Obscene Video to Undercover Law Enforcement OfficerRead the Press Release
Defendant Believed He Was Sending Video to a 15-Year-Old Girl
LUBBOCK, Texas — Paul Harvilicz, 62, of Copperas Cove, Texas, pleaded guilty today, before U.S. District Judge Sam R. Cummings, to a superseding indictment charging one count of attempted transfer of obscene material to a minor. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Harvilicz, who has been in custody since he was arrested in Waco on March 27, 2013, on related charges, faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, from May 29, 2011, through mid-October 2011, while living in Big Spring, Texas, Harvilicz engaged in a series of communications using Yahoo! messaging and email with a person he believed to be a 15-year-old girl, who represented that she lived in Kentucky. In fact, Harvilicz was actually communicating with a law enforcement officer in Kentucky. On June 28, 2011, Harvilicz emailed this person an obscene video file, depicting an adult male and female 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 was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Kenton County Police Department, Kenton County, Kentucky. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Former Armored Truck Driver Pleads Guilty to Stealing from ATMsRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a former armored truck driver pleaded guilty to stealing money from automated teller machines (“ATM”) in numerous locations in Minnesota and North Dakota. Christopher James Diestler, age 31, of Fergus Falls, pleaded guilty to one count of bank larceny. Diestler, who was indicted on July 16, 2013, entered his plea before United States District Chief Judge Michael J. Davis.
In his plea agreement, Diestler admitted that from March 2005 through March 15, 2012, while working as an armored truck driver for a company out of Sauk Rapids, Minnesota, he stole approximately $182,350 from Bremer Bank ATMs in Alexandria, Breckenridge, Detroit Lakes, Fergus Falls, and Morris, Minnesota, and Wahpeton, North Dakota, as well as a Wells Fargo ATM in Alexandria and a U.S. Bank ATM in Fergus Falls.
ATM currency is dispersed from cassettes that are installed into ATM machines. Diestler admittedly took cash from a number of those cassettes. Then, upon returning to an ATM to retrieve a cassette from which he had stolen money, he replaced the missing funds with currency taken from another ATM. By doing this, any audit performed on the cassettes would fail to reveal the prior thefts.For his crime, Diestler faces a potential maximum penalty of ten years in prison. Judge Davis will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Minnesota Bureau of Criminal Apprehension, the Otter Tail County Sheriff’s Office, the Fergus Falls Police Department, and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Lola Velazquez-Aguilu.
Fifth Adams Produce Official Charged in Scheme to Defraud U.S. GovernmentRead the Press Release
BIRMINGHAM – A fifth Adams Produce Company official now faces federal charges in a scheme to defraud the federal government, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
A federal grand jury today indicted MICHAEL JOHN O'BRIEN, 50, of Navarre, Fla., who was general manager of the Adams Produce distribution center in Pensacola, Fla. O'Brien's duties included determining the prices Adams Produce charged the United States under contracts it had with the government.
The 37-count indictment filed in U.S. District Court charges O'Brien with conspiracy to defraud the U.S. Department of Defense and its Defense Logistics Agency of hundreds of thousands of dollars. The indictment also charges O'Brien with 32 counts of wire fraud or aiding and abetting wire fraud, and with four counts of false claims or aiding and abetting false claims in order to carry out the conspiracy.
Four other Adams Produce officials – Scott David Grinstead, David Andrew Kirkland, Christopher Alan Pfahl and Stanley Joel Butler II – have pleaded guilty to charges in connection with defrauding the government.
Adams Produce was a Birmingham-based company that had been a leading distributor of fresh fruits and vegetables across the Southeast for many years. It was founded more than 100 years ago as a family-owned business. The family sold the company to executives and a private equity firm in 2010. Adams Produce closed abruptly and filed for bankruptcy in 2012.
The Department of Defense, through DLA, contracted with Adams Produce and other distributers to supply fresh fruits and vegetables to military bases, public school systems, junior colleges and universities. Adams Produce had contracts worth millions of dollars with the U.S. government, according to O'Brien's indictment. Under the contracts, the price the government paid Adams depended largely on what Adams had to pay its produce suppliers.
Each week, Adams Produce electronically submitted pricing information to DLA and was required, periodically, to submit purchase orders to DLA proving its costs, according to the indictment.
Adams bought from TLC, one of the largest distributors of fresh produce in the United States, with offices located across the country. Between August 2011 and November 2011, according to the indictment, O'Brien and other Adams employees arranged and conducted transactions with TLC in Marietta, Ga., designed to create purchase orders and invoices that reflected inflated costs to Adams Produce.
According to O'Brien's indictment, he and others continued the conspiracy as follows:
O'Brien communicated instructions, often by e-mail, to other Adams' employees concerning the inflated prices to show on the false purchase orders. Adams' employees and officers used the false purchase orders to support false pricing information the company submitted to DLA for payment. The transactions with TLC to produce false purchase orders and the false information submitted to DLA "were intended to increase Adams Produce's profit margins and inflate the income reported on Adams Produce's financial statements."
The maximum penalty for the conspiracy count is 10 years in prison and a $250,000 fine. The maximum penalty for each wire fraud count is 20 years in prison and a $250,000 fine, and the maximum penalty for each false claim count is five years in prison and a $250,000 fine.
Federal Grand Jury Indicts Blount County Men in Separate Child Pornography CasesRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted two Blount County men in separate cases for distributing, receiving and possessing child pornography, which included images of children less than 12 years old, announced U.S. Attorney Joyce White Vance and Alabama Bureau of Investigation Chief Neil Tew.Independent indictments filed in U.S. District Court charge both JAMES HOWARD WILSON, 51, of Blountsville, and JEREMIAH C. KING, 32, of Springville, with using the Internet to distribute child pornography, receiving child pornography on a computer and possessing child pornography on a computer or computer media. King's possession charge involves images of children younger than 12. Wilson's possession and receiving charges involve images of children younger than 12. Wilson is charged with crimes occurring in 2012. King is charged with crimes occurring between March and May this year.
Distribution and receipt of child pornography each carry a minimum prison term of five years and a maximum of 20 years. The charges also carry a maximum $250,000 fine. Possessing and receiving child pornography that includes images of prepubescent children less than 12 years old both carry a maximum penalty of 20 years in prison and a $250,000 fine.
The Alabama Bureau of Investigation and its Internet Crimes Against Children Task Force investigated the cases. The U.S. Attorney's Office for the Northern District of Alabama is prosecuting the cases.
Members of the public are reminded that the indictment contains only charges. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.FBI Arrests Suburban Attorney for Allegedly Stealing $2.34 Million in Clients’ Funds from Her Escrow AccountRead the Press Release
CHICAGO ― A suburban attorney whose law license was suspended in May was arrested today on federal fraud charges for allegedly misappropriating approximately $2.34 million from a couple who were her clients. The defendant, KATHLEEN NIEW, was charged with 10 counts of wire fraud in a federal grand jury indictment that was returned on Tuesday and unsealed today following her arrest. FBI agents took Niew into custody without incident at her office in Oak Brook.
Niew, 57, of Burr Ridge, operated Niew Legal Partners, LLC, in Oak Brook. She was scheduled to be arraigned at 3 p.m. today before U.S. Magistrate Judge Young B. Kim in U.S. District Court.
According to the indictment, Victims A and B, a husband and wife who were Niew’s clients, transferred approximately $2.34 million into Niew’s attorney escrow account to be used for closings on commercial real estate transactions. Between January 2010 and December 2012, Niew allegedly used the funds for her own benefit, contrary to the false representations she made to the couple and others.
Without the couple’s knowledge, Niew used their funds to finance the purchases of various mining operations and not to purchase any commercial property for the victims, the charges allege. As part of the fraud scheme, Niew arranged to receive a 20 percent finder’s fee for herself from a mining operation in exchange for providing it approximately $1.5 million in funds that belonged to her clients. She falsely told the couple that their funds were available in her escrow account and were to be used for closings when they were not. She further concealed her fraudulent conversion of funds by telling her clients that the bank had erroneously sent the funds intended for closings to the wrong bank accounts, even though she had not directed any such wire transfer of the clients’ funds to the title companies to purchase real estate, the indictment alleges.
The arrest and charges were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation.
The government is being represented by Assistant U.S. Attorney Sunil Harjani.
Each count of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, or an alternative fine totaling twice the gross gain or twice the loss, whichever is greater, and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
An indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Excelsior Coin Dealer Sentenced for Defrauding Customers and Investors Out of over $3.3 MillionRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 53-year-old Excelsior coin dealer was sentenced for devising and executing a scheme to defraud customers and investors out of more than $3.3 million. United States District Judge Patrick J. Schiltz sentenced David Laurence Marion to 60 months in prison on one count of conspiracy to commit mail and wire fraud and one count of money laundering. Marion was indicted on November 14, 2012, and pleaded guilty on February 21, 2013.
Marion owned International Rarities Corporation (“IRC”), a business that bought, sold, and traded gold coins and precious metals, among other things. Marion directed his sales staff to “cold call” people from “lead” sheets in an attempt to get them to buy, sell, or trade coins and precious metals.
In his plea agreement, Marion admitted that between December 2010 and August 2011, IRC received over $2 million in coins, precious metals, and money from customers who intended to make purchases or trades. In August 2011, IRC purportedly had over $2 million in unfulfilled customer orders. When customers inquired about the status of their orders, they were ignored by Marion and the IRC sales staff, or they were falsely advised that their orders were being processed or their money, coins, and precious metals could not be returned at that time. In the meantime, Marion used the customers’ money, coins, and precious metals to support his gambling and lavish lifestyle as well as to pay commissions and salaries, fulfill other customer orders, and support his family. Customers lost approximately $1.7 million in money, coins, and precious metals as a result of this scheme.
As president of International Rarities Holdings (“IRH”), Marion also directed his sales staff to sell securities in the form of ownership shares in the company. However, Marion was not registered with the Securities and Exchange Commission (“SEC”) as a broker or dealer at that time, nor was he associated with a registered SEC broker or dealer. In fact, in April 2009, the SEC rejected Marion’s attempt to register the IRH offering as a security, yet, from at least November 2008 through July 2009, Marion and his sales staff raised approximately $1 million from at least 26 investors who believed they were purchasing ownership shares in the company. Marion used approximately $200,000 of those investor funds for his own personal use.
This case was the result of an investigation by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Internal Revenue Service-Criminal Investigations. It was prosecuted by Assistant U.S. Attorney Karen B. Schommer.
The U.S. Attorney’s Office wants to remind people to protect themselves from securities fraud. For more information, visit http://www.stopfraud.gov/protect-securities.html.Eveleth Woman Indicted for Obtaining $27,851 Social Security Benefits FraudulentlyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 33-year-old Eveleth woman made her initial appearance after being indicted for stealing more than $27,000 in Social Security benefits. On August 13, 2013, Kimberly Joann Wauzynski was charged with one count of theft of public money and one count of supplemental security income (“SSI”) benefits fraud.
The indictment alleges that from September 2008 through May 2012, Wauzynski, also known as Kimberly Joann Denne, stole approximately $27,851.08 from the Social Security Administration (“SSA”). According to the indictment, Wauzynski concealed from the SSA the true nature of her living arrangements in order to continue receiving SSI benefits on behalf of her child. Specifically, the indictment alleges that Wauzynski concealed the fact that the father of her child was living with her and her child and supporting the household. Per law, beneficiaries of SSI payments must report any change in living arrangements or sources of income.
If convicted, Wauzynski faces a potential maximum penalty of ten years in prison on each charge. Any sentence would be determined by a federal district judge. This case is the result of an investigation by the SSA-Office of Inspector General. It is being prosecuted by Assistant United States Attorney John E. Kokkinen.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Eagle Butte Man Sentenced for Possession and Sale of Stolen Firearm and Tampering with A WitnessRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Possession and Sale of a Stolen Firearm and Tampering with a Witness was sentenced on August 26, 2013, by U.S. District Judge Roberto A. Lange.
Jody Albert Hunt, age 35, was sentenced to 24 months of custody on each count to run concurrently, 2 years of supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
Hunt was indicted by a federal grand jury on April 12, 2013, and pled guilty to Possession and Sale of a Stolen Firearm and Tampering with a Witness on June 4, 2013.
The convictions were the result of Hunt taking the personal property from a ranch southwest of Cherry Creek. The stolen property included a DPMS AR-15 semi-automatic assault rifle. After taking the rifle, Hunt drove to Rapid City where he sold the rifle to purchase drugs. With the assistance of the Rapid City Police Department, Hunt was located and arrested.While at the Rapid City jail, Hunt called a witness to his burglary and theft and attempted to get that witness to cover up his crimes. Most of the stolen property and the AR-15 assault rifle were recovered.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Rapid City Police Department; and the Cheyenne River Sioux Tribe Law Enforcement Division. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Hunt was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.Durham Man Sentenced for Distributing Child PornographyRead the Press Release
Lengthy prison term orderedGREENSBORO, N.C. – A Durham man was sentenced today to 190 months in prison for distribution of child pornography, announced United States Attorney Ripley Rand.
Jack Steven Vanlaar, 56, of Durham, North Carolina, had pleaded guilty to one count of distribution of child pornography, an offense punishable by no less than 5 years and no more than 20 years imprisonment. He was sentenced by United States District Judge Catherine C. Eagles to 190 months imprisonment followed by 15 years supervised release. Judge Eagles also ordered Vanlaar to forfeit two computers used in the offense.
The offense was committed between November 23, 2012, and February 23, 2013, using the peer-to-peer file sharing network GigaTribe. Vanlaar was reported by a social networking site to the National Center for Missing and Exploited Children after an image of suspected child pornography was posted on that website. That information led to an investigation by the United States Postal Inspection Service, who seized and analyzed Vanlaar’s computer equipment after obtaining a federal search warrant.
This case was prosecuted by Assistant United States Attorney Anand P. Ramaswamy and brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.
Dupree Man Charged with Aggravated Sexual Abuse of A Child and Sexual Contact with A ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that a Dupree, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child and Sexual Contact with a Child.
James “Pard” Pesicka, age 29, was indicted by a federal grand jury on June 12, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 23, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is up to life in custody, a $250,000 fine, or both; at least 5 years up to life of supervised release; and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The defendant is alleged to have sexually abused a child under the age of 12 several times in Dupree from between July 2008 and February 2012. The charge is merely an accusation and Pesicka is presumed innocent until and unless proven guilty.The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Pesicka was released pending trial. A trial date has not been set.Dominican National Sentenced for Drug and Firearm ViolationsRead the Press Release
BOSTON – A Dominican man was sentenced today on drug and weapon related charges.
Alberto Feliz Garcia, 34, was sentenced today by U.S. District Court Judge Mark L. Wolf to 63 months in prison and four years of supervised release. Following the completion of his federal sentence, Garcia will be placed into removal proceedings and deported to the Dominican Republic. In October 2012, Garcia pleaded guilty to being a previously convicted felon in possession of a firearm, being an alien in possession of a firearm, passport fraud, and possession with intent to distribute heroin.
On the morning of Oct. 17, 2011, agents armed with a federal arrest warrant for passport fraud, encountered Garcia at his home where he was arrested in a second floor bedroom. The room was searched and the agents recovered a Fabrique Nacional 5.7 semi automatic pistol loaded with 19 rounds of armor piercing ammunition. The agents noted that the serial numbers on the pistol were obliterated. Later Garcia consented to a search of the home which recovered 517 grams of heroin, 45 grams of crack cocaine, 32 rounds of 9mm ammunition, and $12,040 in United States currency.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Lawrence Police Chief John Romero, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Unit.
Defendant Sentenced After Pleading to Violations of the Racketeer Influenced Corrupt Organization Act, the Federal Gun Control and Controlled Substances ActsRead the Press Release
TOREY RICHARDSON, age 22, was sentenced today before U.S. District Judge Lance M. Africk after pleading guilty to violations of the Racketeer Influenced Corrupt Organization Act and the Federal Gun Control and Controlled Substances Acts.
TOREY RICHARDSON was sentenced to one-hundred thirty- five (135) months imprisonment and five (5) years of supervised release. RICHARDSON pled guilty to Count 1 RICO Conspiracy, Count 2 Conspiracy to Distribute and Possess with Intent to Distribute over 280 grams Cocaine Base and Count 5 Conspiracy to Possess Firearms During and In Relation to Crimes of Violence and Drug Trafficking Offenses.
This case arose out of a joint investigation by FBI, ATF, and the Jefferson Parish Sheriff’s Office. This investigation targeted an area which exhibited a disproportionate amount of violent crimes and narcotics trafficking. During the course of the investigation, specific individuals were identified as the main perpetrators of many of the violent acts and much of the narcotics distribution. Federal and local law enforcement officers interviewed witnesses, confidential informants, as well as state defendants, relative to the targeted individuals. It was revealed that a group of individuals operated in various areas of Harvey Louisiana, specifically the neighborhoods known as Scottsdale and Haydel. This group controlled these areas for their narcotics distribution activities through violence and through threats of violence, to include murder, attempted murder, obstruction and assaults. They were referred to as the Harvey Hustlers and/or Murder Squad.
The “Murder Squad,” or “MS,” was a faction of the Harvey Hustlers composed primarily of individuals residing in the Harvey, Louisiana area of Jefferson Parish, Louisiana. While they primarily operated on the Westbank of Jefferson Parish, members conducted business in other parts of the Eastern District of Louisiana. The “Harvey Hustlers” also referred to as “HH” originated in the Harvey area in the mid-1980s. Members of the organization “hustled” meaning they distributed illegal narcotics. The original goal of the Harvey Hustlers was to make money from sales of illegal narcotics.
Craig Michael Barbee Sentenced to 30 Years in Prison for Felony Firearms ViolationRead the Press Release
Jackson, TN – Craig Michael Barbee, 40, of Dyersburg, TN, was sentenced today to 360 months
in federal prison for being a previously convicted felon in possession of a firearm, announced
U.S. Attorney Edward L. Stanton III.
Barbee’s sentence comes as a result of his involvement in a May 2012 robbery at the
Dollar General Store in Friendship, Tennessee, which resulted in the shooting of Friendship
Police Chief Bill Garrett. Barbee was found guilty in state court of attempted second degree
murder, especially aggravated robbery, two counts of aggravated assault and a felony firearms
charge. He received a 106-year sentence in that case. The federal case arises from the day
following the shooting, where Barbee was apprehended and found to be in possession of a
firearm. Barbee’s federal sentence is concurrent to his state sentence.
“Today’s sentence of 30 years, without the possibility of parole, hopefully brings some
measure of relief to Police Chief Garrett, his family and close friends,” said U.S. Attorney
Stanton. “Any attempt on someone’s life is horrific, but the fact that Mr. Barbee was brazenly
attempting to take the life of a law enforcement official underscores the extreme danger he posed
to the greater community.”
This case was investigated by the Federal Bureau of Investigation, Crockett County
Sheriff’s Department, Lauderdale Sheriff’s Department, and the Friendship Police Department.
Assistant United States Attorney Victor L. Ivy prosecuted this case on behalf of the United
States.Crack Cocaine Trafficker Sentenced to 25 yearsRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Firkon James, a/k/a Roc, a/k/a Maurice Patterson, a/k/a Mark James, a/k/a John Atkins, 38, of New York City, who was convicted of conspiracy to possess with intent to distribute and distribution of 280 grams or more of cocaine base, was sentenced to 25 years in prison, and 10 years supervised release by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that James purchased cocaine in New York City and transported it to an apartment in Winton Village in Rochester. The defendant then processed the cocaine into cocaine base that he weighed, broke down, packaged, and sold in various quantities. After multiple confidential informant purchases of cocaine base from James, the investigation culminated on September 10, 2010 with the execution of multiple federal search warrants. Officers seized over 250 bags of cocaine base packaged for street sale, a stolen 9mm pistol loaded with 9 rounds of live ammunition, 74 rounds of various rounds of ammunition, paraphernalia for the processing, weighing, and packaging of cocaine and cocaine base for sale, a 2005 Nissan 350Z, a 2005 Jeep Cherokee, a 2003 BMW, and a 2003 Chevy Tahoe. As part of his sentence, James was ordered to forfeit the four vehicles, firearm, and the rounds of ammunition seized during the investigation.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, with assistance provided by the Greater Rochester Area Narcotics Enforcement Team (GRANET), under the direction of Lieutenant Gerald Smith, the Monroe County District Attorney’s Office, under the direction of Sandra Doorley, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Resident Agent in Charge Scott Heagney.Corpus Christi Man Gets Nine Years for Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Michael Anthony Almendarez, 31, has been ordered to federal prison following his conviction of one count of distributing child pornography, United States Attorney Kenneth Magidson announced today. Alemendarez pleaded guilty May 30, 2013.
Today, Senior U.S. District Judge Hayden Head sentenced Almendarez to 108 months in federal prison to be followed by 15 years of supervised release. In handing down the sentence, the court considered defendant’s actions in committing the crime and stated that his use of a cell phone to engage in this behavior was particularly harmful since so many children have cell phones.
Almendarez came to the attention of law enforcement after a concerned citizen reported the receipt of unsolicited images of child pornography on his cell phone. The citizen explained that he had previously loaned his phone to a minor female relative who worked with Almendarez at a local restaurant.
One evening while working at the restaurant, Almendarez borrowed the minor’s phone, not knowing it did not belong to her. Almendarez then sent several pictures of child pornography via text message to the phone. By this time, the phone was once again in the possession of the relative who reported the incident to the police.
On Aug. 3, 2012, a state search warrant was executed at the Corpus residence of Almendarez. A cell phone was obtained from Almendarez and found to contain child pornography. Almendarez admitted to having sent the pornographic images to a person he believed to be the young co-worker.
The FBI investigated the case along with the Corpus Christi Police Department’s Internet Crimes Against Children Task Force with assistance of the Nueces County Sheriff's Office.
This case, prosecuted by Assistant U.S. Attorney Lance Duke, 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."
Convicted Murderer from Texas Pleads Guilty to Being A Felon in Possession of A Firearm in CaddoRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that Larry Robert Baker, 50, of Maud, Texas, pleaded guilty before U.S. District Judge Tom Stagg to possessing a firearm after being convicted and serving time for a murder in Texas and other felonies.
According to evidence presented at the guilty plea, the Louisiana Department of Wildlife and Fisheries (LDWF) conducted an operation Jan. 11, 2013 to catch night hunters who were shooting after dark from the roads in north Caddo Parish. That night, LDWF agents observed Baker shooting from a car at a deer decoy agents had set up. He was arrested, and a .22 caliber revolver was found in the car along with a box of .22 caliber ammunition. Upon further investigation, agents found that Baker had been recently released from prison after serving 20 years for a Texas murder conviction, was driving under suspension, and traveling with open containers of alcohol. Baker was found guilty of murder on August 5, 1993 in the 54th District Court of McLennan County, Texas. Baker also has prior burglary and property theft convictions. Baker bought the firearm from an individual who did not know Baker was a convicted felon.
Baker faces up to 10 years in prison, a $250,000 fine, and three years of supervised release. A sentencing date of December 5, 2013 was set.
The Louisiana Department of Wildlife and Fisheries (LDWF) and the ATF conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. is prosecuting the case as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide program started in 2001 designed to reduce violence by aggressively enforcing existing federal firearms laws.Conspirator in $220,000 Armored Car Robbery Exiled to over 9 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced John Bernard Williams, age 48, of Fort Washington, Maryland, today to 112 months in prison followed by five years of supervised release for conspiracy to commit, and committing the armed robbery of an armored vehicle, and possession of a firearm in connection with a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Mark A. Magaw of the Prince George’s County Police Department; and Montgomery County State’s Attorney John McCarthy.
“Working with our law enforcement partners to curb violent criminal acts committed with firearms is a high priority of the FBI in Maryland,” said Stephen E. Vogt, Special Agent in Charge of the FBI’s Baltimore Division. “We will continue to work with the Montgomery County and Prince George’s County Police Departments to target and arrest individuals committing these crimes.”
According to Williams’ plea agreement, in June 2012, Williams began planning the robbery of an armored vehicle outside the Navy Federal Credit Union located in the 12000 block of Rockville Pike in Rockville, Maryland. Williams and co-defendant Carmen Camacho recruited co-defendant Kai Holt to assist in the robbery. On June 13, 2012, Williams met Holt and two other co-defendants, Marcus Brooks and Deangelo Williams, and traveled in two vehicles to the Navy Federal Credit Union. After arriving, the conspirators drove around the area planning escape routes, then parked in a parking lot adjacent to the credit union. Williams instructed the co-conspirators to wait there until he had given them the signal that the armored car had arrived at the credit union. At about 11:20 a.m., Williams called Holt and told him to proceed with the robbery. Holt and Brooks walked towards the credit union, where a courier was unloading cash from the back of the van for delivery to the credit union. Holt and Brooks approached the courier and as they did so, Holt drew a semi-automatic pistol from his waistband. The courier abandoned the bag of money on the ground at the back of the van and ran away. Brooks picked up the bag, which contained $220,000, and he and Holt ran back to their vehicles and fled. Williams and his co-conspirators traveled back to Prince George’s County, Maryland, where they divided the proceeds of the robbery.
Carmen Camacho, age 31, of Fort Washington, Kai Holt, age 38, of Waldorf, and Marcus Brooks, age 21, of Lanham, Maryland, have all pleaded guilty to their roles in the robbery and are awaiting sentencing. Deangelo Williams, age 20, of Fort Washington, also pleaded guilty and was sentenced to three years in prison.
United States Attorney Rod J. Rosenstein commended the FBI, ATF, Montgomery County Police Department, Prince George’s County Police Department and the Montgomery County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Steven E. Swaney and William D. Moomau, who prosecuted the case.
Conax Flordia Corp. Settles Allegations It Provided Improperly Tested Equipment and Non-Conforming <br /> Electronic Parts for Use by the Military and NASARead the Press Release
Conax Florida Corp. and related companies have agreed to resolve allegations under the False Claims Act that the company submitted false claims to the government for improperly tested inertia reels and non-conforming voltage references, the Justice Department announced today. Inertia reels are part of a system designed to secure aircrew members in the event of a crash. On impact, inertia reels lock in place harnesses worn by aircrew members, preventing injury. Voltage references are electronic parts used in water-activated parachute releases. Both devices are used by the U.S. military and NASA.“Our military deserves equipment that is properly built and tested, and meets specifications designed to ensure their safety,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “The Department of Justice will vigorously pursue cases where contractors provide improperly tested or deficient equipment to American military service members.”
“The settlement of the Conax case reflects our commitment to hold defense contractors accountable for delivering exactly what they are paid to deliver,” said Carter Stewart, U.S. Attorney for the Southern District of Ohio. “We will continue to pursue aggressively all allegations of misconduct in the procurement process.”
The government alleged that the inertia reels were not tested in accordance with contractual requirements and that Conax used non-conforming voltage references. The voltage reference is an integral part of the water-activated parachute release, designed to protect unconscious or injured aircrew members who parachute into salt water. These devices are intended to automatically separate parachutes from aircrew members when they are physically unable to do so. If parachutes are not released, they may fill with water and drag aircrew members underwater.
“The Defense Criminal Investigative Service is dedicated to ensuring that the Pentagon’s procurement programs provide safe, high-quality materials to support America's Warfighters, especially when it comes to critical life-saving equipment used by military aircrews,” said John F. Khin, Special Agent in Charge, DCIS-Southeast Field Office.
“This settlement demonstrates that joint investigations with other law enforcement partners are a highly effective resource to combat fraud and preserve the integrity of vital Defense and federal procurement programs,” added Jeff Arsenault, Special Agent in Charge, DCIS-Central Field Office.“This effort underscores the important role fraud detection plays in ensuring the safety of both air and space flight operations. I commend the outstanding investigative efforts of the NASA and DCIS agents and the work of USAO for the Southern District of Ohio and the Commercial Litigation Branch of the Justice Department’s Civil Division in reaching this agreement,” said NASA Inspector General Paul K. Martin.
Under the settlement announced today, Conax has paid $2 million to the government. In addition, Conax has reached an agreement with the Defense Logistics Agency to provide the government with 4,969 new electronic parts for use with parachute releases, which are worth up to $2.4 million.
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the government for false claims and obtain a portion of the government’s recovery. The civil lawsuit was filed in the Southern District of Ohio by two former employees of Conax, Mark Hansson and Steven Schummer, who together will receive up to a total of $810,478.
The settlement with Conax was the result of a coordinated effort among the U.S. Attorney’s Office for the Southern District of Ohio, the Commercial Litigation Branch of the Justice Department’s Civil Division, the Defense Criminal Investigative Service and NASA’s Office of the Inspector General. The claims resolved by this settlement are allegations only, and there has been no determination of liability.
The lawsuit is captioned United States ex rel. Mark Hansson and Steven Schummer v. Conax Florida Corporation.Clayton County Police Officer Assigned to U.S. Marshals Service Task Force Arrested on Public Corruption, Drug Trafficking, and Firearm ChargesRead the Press Release
ATLANTA – Dwayne Penn, a Clayton County Police Officer assigned to the U.S. Marshals Service fugitive task force, and Adrian Demetric Austin have been arrested on corruption, drug trafficking, and firearm charges.
“Penn’s abuse of trust is shocking,” said United States Attorney Sally Quillian Yates. “Police officers who manipulate their positions create mistrust with the people they are sworn to protect. As demonstrated by the number of police officer cases charged earlier this year, we are committed to pursuing these cases wherever they arise to restore the public’s trust in honest law enforcement.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “While public corruption matters overall are a priority criminal investigative program within the FBI, any allegation of public corruption involving law enforcement officers takes on a particular sense of urgency. This matter, involving Clayton County Police Officer and U.S. Marshals Task Force Officer Dwayne Penn, was worked with close cooperation and support by the U.S. Drug Enforcement Administration (DEA). While the arrest of Officer Penn is disconcerting, the public should be reminded that the vast majority of those individuals serving within the criminal justice system do so with honor and integrity.”
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division stated, “The vast majority of law enforcement officers serve the public with honor and distinction. Officers like these unfortunately tarnish the badge of the committed men and women of law enforcement. This individual will now have to face the consequences for his deplorable actions. The success of this investigation would have not been possible without the dynamic level of law enforcement cooperation.”
“The Clayton County Police Department remains dedicated and committed to serving and protecting Clayton County residents and businesses, said Clayton County Deputy Police Chief Christopher L. Butler. “We ask that you continue your support of those unfaltering officers.”
According to United States Attorney Yates, the complaint and other information submitted in court: In August 2013, Penn, of the Clayton County Police Department, allegedly conspired with Austin, a suspected Atlanta-based drug dealer, to use Penn’s official position as a police officer to stage a fake traffic stop of a car that he and Austin believed would contain six kilograms of cocaine, conduct a fake arrest of the car’s occupant, seize the cocaine for themselves, and then sell the cocaine, sharing their ill-gotten gains. Fortunately, the person whom Penn and Austin sought to recruit for this corrupt endeavor was cooperating with federal law enforcement and agreed to record his/her meetings with Penn and Austin. In the lead up to the fake arrest and seizure, Penn and Austin met face-to-face with the confidential informant on two separate occasions to plan their operation.
The complaint alleges that the first planning meeting, which was surreptitiously recorded by law enforcement, occurred on August 21, 2013. Penn drove his police car to the meeting. While together, Penn, Austin, and the confidential informant discussed the confidential informant obtaining cocaine from his/her drug source of supply. Penn would then conduct a fake traffic stop and arrest of the confidential informant in front of the source, using Penn’s police vehicle and lights, and seize the cocaine, leading the source to mistakenly believe the drugs had been seized by law enforcement. They would divide up the seized cocaine among themselves according to the plan. As part of the charade, Penn agreed to handcuff the confidential informant, put the drugs in the trunk of his police car, and drive the confidential informant to a second location. Penn reassured the confidential informant that they could cover his/her tracks with the source of supply to deflect suspicion.
Penn, Austin, and the confidential informant met again on August 27, 2013, at a parking lot in Decatur where the drug deal was to occur. The meeting was at Penn’s request so they could further plan the operation. Like the August 21 meeting, the August 27 meeting was surreptitiously recorded by law enforcement. Penn drove his police car to the August 27 meeting as well. The confidential informant entered Penn’s police car, where Austin was already waiting. The three continued their discussion of the staged traffic stop, arrest, and seizure, which they agreed would occur the next day at that same parking lot. Penn worked through the logistics, including where he would park during the cocaine deal; how Penn would conduct the fake traffic stop, arrest, and seizure; and the eventual split of the seized six kilograms of cocaine. Penn drove Austin and the confidential informant around the parking lot, scouting out possible spots for various events the next day. Penn even asked if Austin wanted to ride with him the next day.
As planned, on the morning of August 28, 2013, Penn and Austin arrived at the Decatur parking lot. Penn drove his police car and parked it in view of where the drug deal was to occur. While waiting, Penn ran the tags of a number of vehicles in the area through law enforcement databases. The confidential informant met with the supposed drug dealer (also a law enforcement source) in the parking lot in view of Penn. The confidential informant received a shopping bag containing six kilogram-size bricks of fake cocaine, walked back to his/her vehicle, and placed the bag inside, placing two kilogram bricks in the back seat and leaving the remaining four kilogram bricks in the shopping bag in the front seat.
Shortly after the confidential informant emerged from the vehicle, Penn sped over in his police car with the lights on and blocked the confidential informant from leaving. Penn jumped out of his car with his firearm drawn and pointed it at the confidential informant. Penn was wearing a bulletproof vest, which read “Police,” and a black baseball hat. Penn ordered the confidential informant to get on the ground and to keep his/her “hands behind your back,” which the confidential informant did. Penn holstered his firearm, picked up the confidential informant from the ground, and patted him/her down. Penn then ushered the confidential informant into Penn’s police car. The confidential informant told Penn that s/he had already taken his/her two and that there were four in the bag. Penn then walked over to the confidential informant’s vehicle and removed the shopping bag with the four kilogram bricks from the front seat, leaving the confidential informant’s share (two kilograms) in the car. Penn placed the shopping bag in the trunk of his police car, told the confidential informant to “get out of here,” and drove away with the cocaine-like substance, leaving the confidential informant and the two kilogram bricks behind at the parking lot.
Penn and Austin were arrested shortly afterward in the vicinity of the Decatur parking lot. They are charged in a criminal complaint with drug trafficking and firearm charges; Penn is also charged with public corruption. They made their initial appearance in United States District Court for the Northern District of Georgia before United States Magistrate Judge Alan J. Baverman today.
If convicted, Penn, 38, and Austin, 38, both of Atlanta, Ga., face a maximum sentence of up to life imprisonment for the drug trafficking charges; up to life imprisonment for the firearm charge; and, for Penn, up to 20 years on the public corruption charge; as well as fines of over $10 million dollars.
Members of the public are reminded that the criminal complaint contains only allegations. A defendant is presumed innocent of the charges, and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the Federal Bureau of Investigation and Drug Enforcement Administration.
Assistant United States Attorney Scott Ferber is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.