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25 October 2013
Pierre Man Sentenced for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pierre, South Dakota, man charged with Failure to Pay Child Support has pled guilty and was sentenced on October 23, 2013, by U.S. District Judge Roberto A. Lange
Jason Hackett, age 36, was sentenced to 5 years' unsupervised probation, restitution in the amount of $41,610.26, and a $100 special assessment to the Federal Crime Victims Fund.
The conviction stems from nonpayment of past due child support obligations as ordered by the Sixth Judicial Circuit, Hughes County, South Dakota. From on or about May 1, 2012, and continuing to the present, Hackett has resided in a different state than his minor child, and failed to pay past due support obligations.
The investigation was conducted by the U.S. Department of Health and Human Services. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Pierce County Man who Killed Two While Protecting his Marijuana Grow Pleads Guilty to Drug and Gun CrimesRead the Press Release
A Puyallup, Washington man who shot and killed two men who had entered the garage where he was growing marijuana, pleaded guilty today in U.S. District Court in Tacoma to manufacturing marijuana and possession of a firearm in relation to a drug trafficking crime, announced U.S. Attorney Jenny A. Durkan. JEREMY PETER CAPODANNO, 36, was arrested in April 2013. Use of a firearm in relation to drug trafficking carries a five year mandatory minimum term. Under the terms of the plea agreement, CAPODANNO is forfeiting nearly $670,000 in proceeds from the sale of two properties -- his Puyallup home and a second home in Kent, Washington. CAPODANO is also forfeiting a 2008 Mercedes, a 2008 Toyota pickup truck and five firearms seized at the crime scene. Sentencing is scheduled before U.S. District Judge Ronald B. Leighton on January 17, 2014.
“The defendant’s conduct put the safety of our community and his family at risk. He armed himself expecting trouble, and unfortunately he got it,” said U. S. Attorney Jenny A. Durkan. “Consistent with our enforcement priorities, we continue to focus on those who bring violence and use firearms to protect illegal drug businesses.”
On December 6, 2012, CAPODANNO shot two people who had broken into the garage of his Puyallup residence – killing both of them. In the garage loft was a marijuana grow with nearly 200 plants. When police officers arrived, they found CAPODANNO in possession of a Glock 17, 9mm semiautomatic pistol, which is the gun that CAPODANNO used to kill the two men. While searching CAPODANNO’S truck, police found additional marijuana as well as other weapons including a Bushmaster XM-15 assault rifle; an Intratec Tec-9 9mm pistol; a Benelli 12 gauge shotgun; and a Professional Ordinance MDL Carbon 15.
The case is being investigated by the Drug Enforcement Administration (DEA), the Pierce County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and Matthew Thomas.
Pennsylvania Man Convicted of Drug Conspiracy Following Trial in Federal CourtRead the Press Release
Members of International Drug Trafficking Organization
Conspired to Acquire 80 Kilograms of Cocaine from Federal AgentALBANY, NEW YORK – A jury in Albany convicted a Reading, Pennsylvania man of conspiracy to distribute and possess with intent to distribute more than five kilograms of cocaine following a two-day jury trial, announced United States Attorney Richard S. Hartunian and James Spero, Special Agent-in-Charge, Homeland Security Investigations. Miguel Reyes, 50, faces at least ten years of imprisonment, a maximum term of imprisonment of up to life, and a $10,000,000 fine. Sentencing is scheduled for February 10, 2014 at 11:30 a.m. in Albany, New York before the Honorable Thomas J. McAvoy.
The evidence at trial showed that, in 2004, REYES conspired to obtain 80 kilograms of cocaine from undercover law enforcement officers posing as cocaine traffickers from Montreal, Quebec. Members of the conspiracy intended to distribute the cocaine throughout the United States. Two other members of the conspiracy, who were convicted in 2004 and 2005, delivered $200,000 in U.S. currency to undercover law enforcement officers in exchange for a portion of the cocaine. REYES was arrested in early 2013 after attempting to enter the United States from Mexico.
The case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations and the Montreal Police Department. The case was prosecuted by Assistant United States Attorney Wayne A. Myers.
Parmelee Woman Charged with Failure to AppearRead the Press Release
United States Attorney Brendan V. Johnson announced that Kamelia No Moccasin, a/k/a Kamelia Shoulders, age 29, of Parmelee, South Dakota, appeared before U.S. District Judge Roberto A. Lange on October 24, 2013, and pled guilty to Failure to Appear.
The maximum penalty upon conviction is 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.
Previously, No Moccasin was placed on personal recognizance after an initial appearance and arraignment on an Involuntary Manslaughter charge in U.S. District Court, which required her to attend all court proceedings as a condition of release. On June 11, 2013, No Moccasin did not appear for her trial at 9:00 am, as ordered. She was apprehended and arrested on June 20, 2013.
The investigation was conducted by the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date was set for December 3, 2013. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.
Nationwide Prescription Drug Take-Back Event – October 26Read the Press Release
SAN FRANCISCO – The Drug Enforcement Administration (DEA) and its national, tribal, and community partners will hold a seventh National Prescription Drug Take Back Day at thousands of sites across the country on Saturday, October 26, 2013. These Take Back Day events give the public the opportunity to prevent prescription drug abuse and theft by ridding their homes of potentially dangerous expired, unused, or unwanted prescription drugs.
Prescription drugs that languish in medicine cabinets create a public health and safety concern because they are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high; almost twice as many Americans (6.8 million) currently abuse prescription drugs than the number of those abusing cocaine, hallucinogens, heroin, and inhalants combined, according to the 2012 National Survey on Drug Use and Health. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet.
“Prescription drug abuse brings harm to our community, endangering those who obtain these controlled substances without proper medical supervision,” stated U.S. Attorney Melinda Haag. “By properly removing these outdated and dangerous products from our medicine cabinets, we eliminate a temptation that often has disastrous consequences. The U.S. Attorney’s Office commends the DEA for addressing this challenging topic and for their efforts in organizing this Prescription Drug Take-Back Event.”
“The DEA’s San Francisco Field Division is committed to the National Prescription Drug Take Back Day and we are proud to host more than 226 collection sites with our law enforcement and corporate partners. Cumulatively, Northern California residents have turned in more than 65 tons of prescription drugs during the past six National Prescription Drug Take Back Days, and we expect that this Saturday will be even more successful than the prior events. Prescription drug abuse is a serious health issue that should concern all parents. Studies show that more than 54 percent of children 12 and older abuse pain relievers they get from friends or family, so it only makes sense to dispose of unused, unneeded, expired prescription medications from the home,” said Acting Special Agent in Charge Bruce C. Balzano.
Americans participating in the DEA’s six previous Take-Back Days turned in nearly 2.8 million pounds—almost 1,409 tons—of prescription drugs, most recently at more than 5,800 sites operated by over 4,300 of DEA’s law enforcement partners.
The public can find a nearby collection site by visiting www.dea.gov, clicking on the “Got Drugs?” icon, and following the links to a database where they can enter their zip code. Or, they can call 1-800-882-9539 for additional information. The service is free and anonymous.
Mission Man Charged with Assault by Striking, Beating and Wounding, and Simple AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Hubert Desersa, age 23, of Mission, South Dakota, appeared before U.S. Magistrate Judge Mark A. Moreno on October 23, 2013, and pled guilty to Assault by Striking, Beating and Wounding, and Simple Assault.
The maximum penalty upon conviction is 18 months in custody and/or a $105,000 fine, and $35 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on May 31, 2013, when Desersa slapped and hit the victim, knocking her to the floor and tearing her clothes off during the assault. Desersa then followed the victim into another room, where the two struggled over a knife, and the victim was cut on the web of her hand.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing. A sentencing date has not been set.
Mission Man Acquitted of Aggravated Sexual Abuse and Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man was acquitted on October 23, 2013, of Aggravated Sexual Abuse and Sexual Abuse as a result of a federal jury trial in Pierre, South Dakota.
Mart Kirkland, age 23, was indicted by a federal grand jury on March 13, 2013.
The charges relate to the alleged sexual abuse of a woman on October 29, 2013, in Todd County.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. The U.S. Attorney's Office prosecuted the case.
Men Charged with Alien Smuggling Resulting in Death After Boat Capsizes, Four DieRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Rear Admiral John H. Korn, Commander, 7th Coast Guard District, announce the indictment of six defendants following last week’s vessel capsize that resulted in the deaths of four women.
The twenty-four count indictment returned today by a federal Grand Jury, charges Naaman Davis, 53, and George Lewis, 38, both of the Bahamas, with conspiracy to encourage and induce aliens to enter the United States resulting in death, in violation of Title 8, United States Code Section 1324(a)(1)(A)(v)(I), and encouraging and inducing aliens to enter the United States resulting in death, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(iv). Davis is additionally charged with involuntary manslaughter, in violation of Title 18, United States Code, Section 1112, and illegal reentry into the United States, in violation of Title 8, United States Code, Section 1326(a). Lewis is also charged with illegal reentry into the United States by an aggravated felon, in violation of Title 8, United States Code, Section 1326(a) and (b)(2).
In addition, three other individuals who were onboard the vessel, Matthew Williams, 30, Everton Jones, a/k/a “Everton Bryce,” 40, and Kenard Hagigal, 35, all of Jamaica, were charged with illegal reentry into the United States by an aggravated felon, in violation of Title 8, United States Code, Section 1326(a) and (b)(2). A fourth passenger, Sean Gaynor, 37, of Jamaica, was charged with illegal reentry into the United States, in violation of Title 8, United States Code, Section 1326(a).
If convicted, Davis and Lewis face a maximum sentence of life in prison or death; Williams, Jones, Bryce, and Hagigal face a maximum sentence of twenty years in prison; and Gaynor faces a maximum sentence of two years in prison.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the U.S. Coast Guard. This case is being handled by Special Assistant U.S. Attorney Kelly Blackburn.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty.
Attachment:
Indictment (PDF)
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.
Member of Drug and Money Laundering Conspiracy SentencedRead the Press Release
BOSTON – A leading member of a drug trafficking and money laundering conspiracy was sentenced yesterday after a multi-year FBI task force investigation into illegal activity in Boston’s Chinatown.
Brant Welty, 41, of South Boston, was sentenced by United States District Court Judge Joseph L. Tauro to 100 months in prison and ordered to pay a criminal forfeiture money judgment of $85,500. In March 2013, he pleaded guilty to conspiracy to distribute oxycodone and money laundering conspiracy. Welty, along with 12 others, was first charged in 2011 for a conspiracy which spanned Massachusetts, Florida, New York, Rhode Island, South Carolina and elsewhere, trafficked hundreds of thousands of oxycodone pills and generated over $4 million in proceeds.
The FBI’s Organized Crime Task Force led a long-term investigation into drug-trafficking, illegal gambling, extortion, prostitution, and other criminal activity in Boston’s Chinatown and elsewhere. The investigation included a seven month, court-authorized wire surveillance of cell phones, including the phones of five of the defendants associated with the conspiracy. The investigation has resulted in the seizure of over $480,000 in cash, a 38-foot speed boat, numerous luxury vehicles, 13 firearms and approximately 12,000 oxycodone pills. Investigators also uncovered extensive evidence of illegal gambling and prostitution as well as the use of extortionate threats to collect loans to gamblers and others.The following were also convicted of the drug-trafficking conspiracy and, in the cases of some defendants, money laundering conspiracy: John Willis a/k/a Bac Guai John (White Devil John), 42, of Dorchester, the leader of the conspiracy, sentenced to 20 years; Kevin Baranowski, 41, of Boston, sentenced to 80 months; Peter Melendez, 50, of Sunrise, Fla., sentenced to 160 months; Colby Deering, 41, of Quincy, sentenced to 60 months; Brian Bowes, 42, of Sunrise, Fla., sentenced to 57 months; and Michael Clemente, 29 of Sunrise, Fla., sentenced to 36 months. Bridget Welty, 40, of Boston, was convicted of structuring and was sentenced to one year of supervised release. Anh Nguyen, 28, of Boston, was convicted of witness tampering, and sentenced to one year of probation. Aibun Eng, 38, of Quincy, was convicted of drug conspiracy and has yet to be sentenced.
In another case arising from this investigation, the following defendants were convicted of operating an illegal gambling business, which had been based at 17-23 Beach Street in Chinatown since 2010. Minh Cam Luong, a/k/a Ming Jai, 46; Hin Pau, 45; Judy Huyen Truong, 41, of Quincy; Jian Ming Chen, 38, of Brighton; Elburke Lamson, 47, of Chelsea; and Tan Ngo, 54, of Waltham. Luong and Pau also were convicted of conspiring to use and/or using extortionate means, including threats or actual use of violence, to collect debts, including debts owed to the illegal gambling business.
Luong, was sentenced to 84 months; Pau to 96 months; Chen to one year and one day; Lamson to six months; Ngo to18 months; and Truong to time served and seven months supervised release. Chien Van Tran, 43, of Malden, whose case is pending, is charged with operating an illegal gambling business and extortion conspiracy.
In another case arising from this investigation, Wei Xing Chen, 50, of Cambridge, was convicted of possession with intent to distribute benzylpiperazine (BZP), also known as ecstasy, and conspiracy to distribute BZP. In addition, Chen and Xiaohong Xue, 41, of Cambridge, were convicted of conspiring to induce travel to engage in prostitution. Chen also was convicted of money laundering conspiracy. Chen, who operated brothels in Cambridge and Boston, was sentenced to 70 months while Xue was sentenced to two years of probation, including six months of home detention.
Several members of the drug conspiracy, including Brant Welty and John Willis, frequented Chen’s brothels and/or Luong’s gambling den. Employees of Luong’s gambling business frequented Chen’s brothels. Some of Luong’s employees associated with Willis, and Willis also served as an enforcer for Chen.
In a final case arising from this investigation, brothers Stanley Gonsalves, 34, of Sandwich, and Joshua Gonsalves, 33, of Dennisport, have been charged with distribution and conspiracy to possess with intent to distribute oxycodone. Both defendants are detained pending trial.
U.S. Attorney Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was investigated by the FBI’s Organized Crime Task Force which includes IRS Criminal Investigation, Massachusetts State Police, Massachusetts Department of Correction, and Quincy, Medford and Boston Police Departments. Assistance was also received from the DEA, ICE Homeland Security Investigations, Cambridge Police Department, New York City Police Department, Broward County (Fla.) Sheriff’s Office and the Ridgeland and Dillon Police Departments in South Carolina. The case was prosecuted by Assistant U.S. Attorneys Timothy E. Moran and Richard L. Hoffman of Ortiz's Strike Force Unit.
Martial Arts Instructor Pleads Guilty to Six Counts of Sexual Exploitation of A MinorRead the Press Release
Christopher M. Horton, 20, of Highland, Illinois, plead guilty today in the United States District Court to an indictment charging him with five counts of Sexual Exploitation of a Minor and one count of Attempt Sexual Exploitation of a Minor, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Documents filed in US District Court establish that while employed as a martial arts instructor at a studio in Belleville, Illinois, Horton sexually abused three students between the ages of 6 and 10 years and video recorded these acts using his Apple i-Phone. Horton also attempted to engage a fourth minor in sexually explicit conduct for the purposes of producing a recording of the conduct. Approximately 57 video files containing child pornography were recovered from Horton’s cellular phone, which were created between the dates of May 1, 2012, and February 9, 2013. During an interview with law enforcement, Horton confessed to sexually abusing the minors and to having produced video recordings of the abuse using his cellular telephone.
Horton is scheduled to be sentenced on March 7, 2014, at which time he faces a term in prison of not less than fifteen (15) years but not more than 30 years on each count, a fine up to $250,000, and a term of supervised release of not less than five (5) years, up to and including, a lifetime of supervision once he is released.
The case was investigated by the Madison County Sheriff’s Department, the Federal Bureau of Investigation’s Metro East Cyber Crimes and Analysis Task Force, the Highland, Illinois, Police Department and the Belleville, Illinois, Police Department. The case is being prosecuted by Assistant United States Attorney Ali Summers.
Manhattan U.S. Attorney Announces Seizure of Additional $28 Million Worth of Bitcoins Belonging to Ross William Ulbricht, Alleged Owner and Operator of “Silk Road” WebsiteRead 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”), Brian R. Crowell, the Special-Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and Toni Weirauch, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), today announced the unsealing of a protective order authorizing the seizure of approximately 144,336 Bitcoins found on computer hardware belonging to ROSS WILLIAM ULBRICHT, a/k/a “Dread Pirate Roberts,” a/k/a “DPR,” a/k/a “Silk Road,” the alleged owner and operator of “Silk Road,” a hidden website designed to enable its users to buy and sell illegal drugs and other unlawful goods and services anonymously and beyond the reach of law enforcement. Along with a prior seizure of approximately 29,655 Bitcoins, federal law enforcement agents have now seized a total of approximately 173,991 Bitcoins in connection with the Silk Road case, which, at today’s Bitcoin exchange rate, are worth over $33.6 million.
The Bitcoins have been seized in connection with a civil action previously filed in Manhattan federal court on September 30, 2013, seeking the forfeiture of all assets of Silk Road, including its website and all of its Bitcoins because those assets allegedly were used to facilitate money laundering and constitute property involved in money laundering. Also in connection with that civil action, federal law enforcement agents previously seized the Silk Road website itself. In addition to the civil action, a criminal Complaint against ULBRICHT was filed in Manhattan federal court charging him with one count of narcotics conspiracy, one of count of conspiracy to commit computer hacking, and one count of money laundering conspiracy. ULBRICHT was arrested in San Francisco, California, on October 1, 2013, he was subsequently ordered detained, and he is expected to appear in Manhattan federal court within the next few weeks. ULBRICHT has also been charged in a separate indictment pending in federal court in Baltimore, Maryland.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Ross William Ulbricht operated Silk Road – a global illegal cyber business designed to broker criminal transactions – protected by a presumed anonymity and motivated by profit. With his arrest and our subsequent seizures of millions of dollars worth of Silk Road’s Bitcoins, we have sent a clear message to him and everyone else running criminal enterprises on the dark web: we are determined and equipped to hold you to account.”
FBI Assistant Director-in-Charge Venizelos said: “As alleged in court documents, the creator of Silk Road, Ross William Ulbricht, created a black market bazaar for drugs and illegal services where customer service and anonymity were added value to shoppers and sellers. This market generated millions in illegal profits for Ulbricht in the form of Bitcoins. However, what Ulbricht didn’t count on was that Silk Road’s coffers would not be out of reach of the FBI and our partners to seize. We want to thank our law enforcement partners here and abroad for their support and work on this case.”
DEA Special-Agent-in-Charge Brian R. Crowell said: “The Silk Road underground website was the global venue for drug trafficking and money laundering, producing millions in dirty profits. DEA and others followed the money throughout this investigation, leading to this seizure. The website was used by drug dealers to put illicit drugs into our communities and literally at our doorsteps nationwide. 200,000 people die annually from drug abuse throughout the world, and our investigators worked tirelessly to bring to justice a facilitator who made every effort to hide behind highly encrypted technology while providing 24/7 anonymous services to global drug traffickers and money launderers. Ulbricht’s goals were to make millions from drug use and money laundering while protecting the world’s criminals from law enforcement. Our goal is to shut these people down and protect our children and DEA will continue to be relentless in this effort.”
IRS Special-Agent-in-Charge Toni Weirauch said: “This seizure sends a clear notice to those who think they can commit crimes and conceal the fruits of their criminal activities in digital anonymity. The resolve of the government to uncover criminality and identify criminal proceeds is strong and its investigative capabilities are magnified when different federal agencies, each with its own areas of expertise, unite to achieve a common objective.”
According to the allegations in the Complaint, the civil forfeiture action, and the application and protective order unsealed today in Manhattan federal court:
Background on Silk Road and ROSS WILLIAM ULBRICHT
Since approximately January 2011, ROSS WILLIAM ULBRICHT owned and operated the underground website known as Silk Road, which emerged as the most sophisticated and extensive criminal marketplace on the Internet. Throughout the time that ULBRICHT controlled Silk Road, it served as a sprawling black-market bazaar where unlawful goods and services, including illegal drugs of virtually every variety, were bought and sold regularly by the site’s users.
During its approximately two-and-a-half years in operation, Silk Road was used by several thousand drug dealers and other unlawful vendors to distribute hundreds of kilograms of illegal drugs and other unlawful goods and services to well over a hundred thousand buyers, and to launder hundreds of millions of dollars derived from these unlawful transactions. All told, the site generated sales revenue of more than 9.5 million Bitcoins and collected commissions from these sales totaling more than 600,000 Bitcoins. Although the value of Bitcoins has varied over time, these figures are roughly equivalent to approximately $1.2 billion in sales and approximately $80 million in commissions, using the Bitcoin exchange rate in effect when the Silk Road website was seized.
ULBRICHT deliberately operated Silk Road as an online criminal marketplace designed to enable its users to buy and sell drugs and other illegal goods and services anonymously and outside the reach of law enforcement. He sought to anonymize transactions on Silk Road in two principal ways. First, ULBRICHT operated Silk Road on what is known as “The Onion Router,” or “Tor” network, a special network of computers on the Internet, distributed around the world, designed to conceal the true IP addresses and therefore the identities of the networks' users. The Tor network is designed to make it practically impossible to physically locate the computers hosting or accessing websites on the network. Second, ULBRICHT required that all transactions on Silk Road be paid with Bitcoins, an electronic currency that is as anonymous as cash. Although Tor and Bitcoins have known legitimate uses, they were intentionally used by Silk Road to further the site’s unlawful goals.
The Silk Road website provided a sales platform that allowed vendors and buyers using the site to conduct transactions online. Silk Road is believed to have been visited by hundreds of thousands of unique users from countries across the globe, nearly 30 percent of whom indicated upon registering on the site that they were from the United States. The illegal nature of the items sold on the website was readily apparent to any user browsing through its offerings. Indeed, the vast majority of the items for sale on Silk Road were illegal drugs, which were openly advertised as such on the site. As of September 23, 2013, Silk Road had nearly 13,000 listings for controlled substances, listed under such categories as “Cannabis,” “Dissociatives,” “Ecstasy,” “Intoxicants,” “Opioids,” “Precursors,” “Prescription,” “Psychedelics,” and “Stimulants.” From November 2011 to September 2013, law enforcement agents made more than 100 individual undercover purchases of controlled substances from Silk Road vendors. These purchases included heroin, cocaine, ecstasy, and LSD, among other illegal drugs, and were filled by vendors believed to be located in more than ten different countries, including the United States, Germany, the Netherlands, Canada, the United Kingdom, Spain, Ireland, Italy, Austria and France.
In addition to illegal narcotics, other illicit goods and services were also openly bought and sold on Silk Road. For example, as of September 23, 2013, there were: 159 listings under the category “Services,” most of which offered computer-hacking services, such as a listing by a vendor offering to hack into social networking accounts of the customer’s choosing; 801 listings under the category “Digital goods,” including malicious software, hacked accounts at various online services, and pirated media content; and 169 listings under the category “Forgeries,” including offers to produce fake driver’s licenses, passports, Social Security cards, utility bills, credit card statements, car insurance records, and other forms of false identification documents.
The only form of payment accepted on Silk Road was Bitcoins, an anonymous, decentralized form of electronic currency, existing entirely on the Internet and not in any physical form. Silk Road’s payment system essentially consisted of an internal Bitcoin “bank,” where every Silk Road user had to hold an account in order to conduct transactions on the site. Every Silk Road user had at least one Silk Road Bitcoin address associated with the user’s Silk Road account. These addresses were stored on wallets maintained on servers controlled by Silk Road. In order to make a purchase on Silk Road, a user had to obtain Bitcoins (typically through a Bitcoin exchanger) and then send those Bitcoins to a Bitcoin address associated with his or her Silk Road account. Once a user’s account was funded in this way, the user was free to make purchases on Silk Road. When a purchase was made, the user’s Bitcoins were first transferred to an escrow account maintained by Silk Road, pending completion of the transaction. When the transaction was completed, the buyer’s Bitcoins were transferred from the escrow account to the Silk Road Bitcoin address of the vendor involved in the sale. Silk Road also used a so-called “tumbler” which, as the site explained, “sen[t] all payments through a complex, semi-random series of dummy transactions…making it nearly impossible to link your payment with any coins leaving the site.” Silk Road charged a commission for every transaction conducted by its users. The commission rate varied depending on the size of the transaction, but generally ranged from 8 to 15 percent of the total sales price.
Using the online moniker “Dread Pirate Roberts,” or “DPR,” ULBRICHT controlled and oversaw every aspect of Silk Road. ULBRICHT, for example, maintained the computer infrastructure and programming code underlying the Silk Road website; determined vendor and customer policies, including deciding what can be sold on the site; managed a small staff of online administrators who assisted with the day-to-day operation of the site; and controlled the enormous profits generated from the operation of the site. ULBRICHT did so while fully aware of the illegal nature of the enterprise; indeed, he deliberately sought to ensure the anonymity of the drug dealers and other illegal vendors operating on the site, as well as to conceal his own identity as the site’s owner and operator.
ULBRICHT was also willing to use violent means to protect the Silk Road enterprise and the anonymity of its users. For example, in March and April 2013, ULBRICHT solicited a murder-for-hire of a Silk Road vendor, known as “FriendlyChemist,” who was threatening to reveal the real names and addresses of a long list of Silk Road users unless ULBRICHT paid him $500,000. Upon receiving the threat from “FriendlyChemist” to expose the names of Silk Road users, ULBRICHT wrote to another Silk Road user, telling that user that “FriendlyChemist” is “causing me problems,” and adding: “I would like to put a bounty on his head if it’s not too much trouble for you. What would be an adequate amount to motivate you to find him? Necessities like this do happen from time to time for a person in my position.” ULBRICHT later explained that the threat by “FriendlyChemist” to expose the names of Silk Road users “is unforgivable to me. Especially here on Silk Road, anonymity is sacrosanct.” However, there is no record of a homicide at or about that time in the area where “FriendlyChemist” supposedly lived.
The Seizure of Computer Hardware Belonging to ROSS WILLIAM ULBRICHT
ROSS WILLIAM ULBRICHT was arrested in San Francisco, California, on October 1, 2013. At the time of his arrest, ULBRICHT was using a laptop computer, which was seized in connection with his arrest and subsequently searched pursuant to a search warrant. ULBRICHT’s residence was also searched on October 1, 2013, pursuant to a search warrant, and federal law enforcement agents conducting that search found several pieces of computer hardware belonging to ULBRICHT (collectively, along with ULBRICHT’s laptop, the “computer hardware”). Through forensic analysis of the computer hardware, federal law enforcement agents recovered a Bitcoin wallet containing approximately 144,336 Bitcoins.
ULBRICHT, 29, of San Francisco, California, is charged with one count of narcotics conspiracy, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison; one of count of conspiracy to commit computer hacking, which carries a maximum sentence of five years in prison; and one count of money laundering conspiracy, which carries a maximum sentence of 20 years in prison.
Mr. Bharara praised the outstanding investigative work of the FBI and its New York Special Operations and Cyber Division, as well as the outstanding investigative work of the DEA’s New York Organized Crime Drug Enforcement Strike Force, which is comprised of agents and officers of the DEA, the IRS, the New York City Police Department, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the New York State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Secret Service, the U.S. Marshals Service, Office of Foreign Assets Control, and NY Department of Taxation. Mr. Bharara also thanked the Chicago field office of ICE-HSI for its assistance and support, as well as the Department of Justice’s Computer Crime and Intellectual Property Section. Additionally, Mr. Bharara praised the foreign law enforcement partners whose contributions to the success of the investigation and prosecution have been invaluable, namely, the Reykjavik Metropolitan Police of the Republic of Iceland and the French Republic’s Central Office for the Fight Against Crime Linked to Information Technology and Communication.
Mr. Bharara also noted that the investigation remains ongoing.
The prosecution of this case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Serrin Turner is in charge of the prosecution, and Assistant United States Attorney Christine Magdo is in charge of the forfeiture aspects of the case.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Ross William Ulbricht Application for Second Post-Complaint Protective Order - Silk Road
U.S. v. Ross William Ulbricht Second Post-Complaint Protective Order - Silk RoadManhattan U.S. Attorney Announces Charges Against Dual U.S.-Iran Citizen for Conspiring to Acquire Surface-To-Air Missiles for the Government of IranRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Derek Maltz, the Special Operations Division Agent in-Charge of the United States Drug Enforcement Administration (“DEA”), today announced the unsealing of charges against REZA OLANGIAN, a dual citizen of the United States and Iran, in connection with his efforts to acquire surface-to-air missiles (“SAMs”) for the government of Iran. OLANGIAN was arrested in Estonia on October 10, 2012, pursuant to a U.S. request for his provisional arrest, and he was extradited to the United States on March 26, 2013. The case is assigned to U.S. District Judge Loretta A. Preska.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, after having been thwarted in his first attempt, Reza Olangian seized on a second opportunity to help arm the Iranian military with surface-to-air missiles and airline parts in violation of international trade sanctions and other laws. Thanks to the outstanding work of our law enforcement partners, Olangian struck out on his second attempt and he will now answer for his alleged willingness to jeopardize this country’s national security.”
DEA Special Operations Division Agent in-Charge Derek Maltz said: “Mr. Olangian’s conspiracy could have put American lives at risk, as well as those of our friends across the globe, if put into action. DEA possesses the unique ability to direct complex undercover operations thanks to our intelligence capabilities, close partnerships, and vast informant network around the world. These tools have allowed us to infiltrate global criminal networks that threaten America's security.”
According to the allegations in the Indictment, the Amended Complaint, and other documents filed in Manhattan federal court:
In 2007, OLANGIAN worked with Iranian officials to obtain approximately 100 SAMs for use by the Iranian government. Ultimately, that missile deal was unsuccessful.
Beginning in early 2012, OLANGIAN worked to negotiate a separate missile deal, this time with a confidential source working with the DEA (the “CS”), who purported to be a weapons and aircraft broker. From his base of operations in Tehran from approximately May 2012 through October 2012, OLANGIAN arranged for the purchase of “IGLA-S” SAMs and various aircraft components. During a covertly recorded meeting in May 2012, and in subsequent recorded conversations and e-mails with the CS, he described in detail his plans for procuring the SAMs and aircraft parts and then smuggling them over land into Iran, from Afghanistan or from another neighboring country.
OLANGIAN’s 2012 negotiations included his participation in a videoconference with the CS, during which OLANGIAN remotely inspected a bona fide SAM, which the CS presented as a sample of the larger quantity of SAMs that OLANGIAN sought to purchase. After inspecting the SAM and inquiring about its specifications, OLANGIAN stated that he would want “at least 200 . . . minimum 200” of such SAMs. In his communications with the CS, OLANGIAN also indicated that he was arranging for a missile expert to inspect and test the SAMs.
During October of 2012, OLANGIAN traveled to Estonia, where he was arrested. Following his arrest, OLANGIAN stated, among other things, that he had been working with Iranian government officials; that the SAMs he had arranged to purchase were being obtained for the Iranian government; and that the aircraft parts he attempted to acquire were to be used in Iranian military aircraft.
The Indictment charges OLANGIAN in four Counts. Counts One and Two charge him with conspiring to acquire and transfer surface-to-air missile systems and attempting to acquire and transfer surface-to-air missile systems. Counts Three and Four charge him with conspiring to violate the International Emergency Economic Powers Act (“IEEPA”) and attempting to violate IEEPA.
If convicted, OLANGIAN faces a maximum sentence of life in prison on each of Counts One and Two, including a mandatory minimum sentence of 25 years in prison on each count. He faces a maximum sentence of 20 years in prison on each of Counts Three and Four.
Mr. Bharara praised the outstanding efforts of the Special Operations Division of the DEA and the DEA Copenhagen Country Office. Mr. Bharara also thanked the U.S. Department of Justice’s Office of International Affairs and its National Security Division.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Sean Buckley and Shane Stansbury are in charge of the prosecution.
The charges contained in the Indictment and the Amended Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Reza Olangian Indictment (12 Cr 798)
U.S. v. Reza Olangian Amended Complaint (12 Mag 2553)Lubbock Man Sentenced to 142 Months Federal Prison for Robbing First United Bank, Plains Capital Bank and Alliance Federal Credit UnionRead the Press Release
LUBBOCK, Texas — Jeffrey Hensley, 42, appeared in federal court this morning, before U.S. District Judge Sam R. Cummings, who upwardly departed from the U.S. Sentencing Guidelines and sentenced him to 142 months in federal prison. Hensley pleaded guilty in July 2013 to three counts of bank robbery and credit union robbery, and he has been in custody since his arrest on April 22, 2013, following the execution of a federal search warrant at his residence in Lubbock. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on September 14, 2012, at approximately 1:25 p.m., Hensley, carrying a bank bag and wearing blue jeans, a gray pull-over and a black baseball cap, entered the First United Bank, 9801 Indiana Avenue, in Lubbock, opened the bag and removed a note that he passed to a teller. The note stated words to the effect of: “Don’t make me show my weapon.” Hensley told the teller, “Give me your bundles. Keep your hand away from your button and quit stalling.” The teller surrendered cash to Hensley who placed most of it in the bank bag, retrieved the note and exited the bank.
On December 8, 2012, at approximately 4:54 p.m., Hensley, carrying a bank bag, entered the Plains Capital Bank, 6002 Slide Road in Lubbock and handed a teller a note that read: “Fill the bag with all the money in the drawer - if I have to show my weapon I will use it - you have 15 seconds!!” Hensley ordered the teller to put the money in the bag and lifted his hooded sweatshirt as if to partially display a firearm. The teller surrendered cash and Hensley stuffed the money inside the bank bag and exited the bank.
On February 13, 2013, at approximately 3:45 p.m., Hensley entered the Alliance Federal Credit Union, 6601 Indiana Avenue in Lubbock, walked up to a teller and handed him a note. Hensley then handed a pink cosmetic bag to the teller and told her: “Hurry up! Everything in the drawer goes in the bag. Put the money in the bag. Put the money in the bag.” The teller surrendered the cash to Hensley who put it in the pink bag and exited the bank.
This case was investigated by the FBI, the Texas Department of Public Safety, the Lubbock Police Department and the Lubbock County Sheriff’s Office. Assistant U.S. Attorney Jeffrey Haag prosecuted.
Leader and Others Ordered to Federal Prison in Alien Smuggling ConspiracyRead the Press Release
HOUSTON - Francisco Chao-Martinez, 31, and five others have been ordered to prison for their roles in a conspiracy to transport or harbor aliens illegally present in the country, announced United States Attorney Kenneth Magidson. Mexican National Chao-Martinez pleaded guilty to conspiracy to transport aliens as did Juan Carlos Solis-Sanchez, 31, of Mexico, Daniel Sanchez-Cabarello, 31, of El Salvador, and Edgar Carranza-Espinal, 36, and Carlos Benegas-Benetiz, 36, both of Honduras. A sixth defendant, Fredis Sanchez-Martinez, 22, of Honduras, was convicted of conspiracy to harbor aliens illegal present in the United States
Late yesterday, U.S. District Judge Sim Lake, who accepted all the guilty pleas, handed Chao-Martinez a 57-month sentence. In handing down the sentence, Judge Lake found Chao-Martinez was the organizer and leader of the two-year conspiracy involving a conservative estimate of 500 undocumented aliens.
Solis-Sanchez was sentenced Tuesday of this week to a term of 27 months in prison, while Sanchez-Cabarello and Benegas-Benetiz received respective sentences of 18 and four months. Sanchez-Martinez was also sentenced Tuesday to a 12-month and one day term of imprisonment. Carranza-Espinal will be sentenced today at 3:00 p.m.
As illegal aliens, all are expected to face deportation proceedings following release from prison.
Charges in the case stem from an investigation that began in January 2013 after federal agents received information that Chao-Martinez was involved in organizing temporary housing for aliens smuggled to Houston. He then coordinated their transportation by means of motor vehicle to different locations throughout the United States.
In June 2013, Chao-Martinez, Solis-Sanchez and Sanchez-Caballero were arrested in connection with arranging the transportation of 14 aliens illegally present in the United States. Later, agents executed a search warrant at a residence in Houston which was being used by Chao-Martinez and his conspirators to stash aliens awaiting transportation. Agents encountered 10 additional aliens illegally present in the United States. Agents also encountered Sanchez-Martinez, Cararranza-Espinal and Benegas-Benetiz, all of whom were determined to be employees of Chao-Martinez involved in the alien smuggling conspiracy.
All will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges in this case was conducted by Homeland Security Investigations. Assistant United States Attorney Casey N. MacDonald is prosecuting the case.
KC Man Charged with Extortion Related to Threat to Contaminate Water SupplyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was charged in federal court today with attempting to extort money from the FBI related to a threat to contaminate the public water supplies of Kansas City, Mo., St. Louis, Mo., Wichita, Kan., and Topeka, Kan.
“I want to assure the community that our water supply is safe,” Dickinson said. “We don’t believe there was ever a credible threat to public health and safety. There is no evidence that anyone actually possessed any chemicals to contaminate public water supplies. The chemicals were as fictional as the conspirators in this imaginary plot.
“We must nevertheless take such threats seriously,” Dickinson added, “and prosecute those who not only make threats, but attempt to illicitly profit from them.”
Manuel Garcia, 69, of Kansas City, was charged in a federal criminal complaint filed in the U.S. District Court in Kansas City, Mo. Garcia was arrested today and remains in federal custody pending a detention hearing.
According to an affidavit filed in support of today’s federal criminal complaint, Garcia made several telephone calls in which he claimed there was a threat to contaminate the public water supply of Kansas City, St. Louis, Wichita and Topeka. An FBI agent recognized Garcia’s voice on the phone calls, and agents contacted Garcia on Wednesday, Oct. 23, 2013.
Garcia told the federal agents that two of his acquaintances, named Raul and Shariff, were going to carry out the plan to put an unknown chemical into the water supply of the four cities. They had tested their plan out on some horses, Garcia said, and the animals went into convulsions and died. Garcia stated that for $10,000 and a grant of immunity he would attempt to locate Raul and Shariff.
The affidavit alleges that Garcia called the Kansas City, Mo., Police Department 9-1-1 Emergency Tips Hotline on Oct. 15, 2013. Garcia allegedly claimed that the water supplies of Kansas City, St. Louis, Wichita, and Topeka, Kansas would be contaminated in the next 10-15 days with an unknown substance contained in four 55-gallon tanks. The 9-1-1 operator asked about an officer returning the call and Garcia hung up.
On the same day, the affidavit says, Garcia called the Alcohol, Tobacco and Firearms Joint Support Operations Center in Washington, D.C., with the same threat.
Garcia allegedly called the Kansas City, Mo., Police Department 9-1-1 Emergency Tips Hotline again on Oct. 22, 2013.
An FBI agent recognized Garcia’s voice on all three phone calls, the affidavit says. Garcia’s residence is close to the exact location the cellular tower system identified as the vicinity from which one of the calls originated.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Brian Casey. It was investigated by the FBI.Justice Department Charges California Apartment Owner and Staff with Discrimination Against Families with ChildrenRead the Press Release
The Justice Department today filed a lawsuit against the owner and operators of a Fremont, Calif., apartment complex, alleging that they had discriminated against families with children in violation of the Fair Housing Act by prohibiting children from playing in the common grassy areas of the complex.
“Families with children should have the same ability to enjoy their homes as all other tenants,” said Jocelyn Samuels, Acting Assistant Attorney General for the Justice Department’s Civil Rights Division.
The lawsuit, filed in the U.S. District Court for the Northern District of California, alleges that the owners and rental staff of Woodland Garden Apartments, a 37 unit apartment complex, adopted and enforced a policy prohibiting children from playing outside in the common grassy areas of the complex. The complex is owned by Fred Martin and managed by Fatima Rivera, both of whom are named in the suit. Alfredo Rivera, a former maintenance worker who participated in enforcing the policy, is also named as a defendant in the suit.
This lawsuit arose as a result of complaints filed with the Department of Housing and Urban Development (HUD) by five families with children who lived at Woodland Garden Apartments, and Project Sentinel, a non-profit organization based in Santa Clara, Calif., that promotes fair housing. After HUD investigated the complaints, it issued a charge of discrimination and the matter was referred to the Justice Department.
“Housing providers cannot impose more restrictive policies on families with children or evict them simply because their children leave the unit,” said Bryan Greene, HUD Acting Assistant Secretary for Fair Housing and Equal Opportunity. “HUD and DOJ are committed to enforcing the fair housing rights of all people, including families with children.”
The lawsuit seeks a court order prohibiting future discrimination by the defendant, monetary damages for those harmed by the defendant’s actions and a civil penalty.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Individuals who believe they may have been victims of housing discrimination may contact the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] ., or contact HUD at 1-800-669-9777 or through www.hud.gov/fairhousing .
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Joshua Hampton Murphy Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Butte, on October 25, 2013, before U.S. District Judge Sam E. Haddon, JOSHUA HAMPTON MURPHY, a 29-year-old resident of Flint, Michigan, was sentenced to a term of:
- ison: 120 months
- ecial Assessment: $100
- pervised Release: 8 years
MURPHY was sentenced in connection with his guilty plea to conspiracy to distribute 100 or more grams of heroin.
In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated it would have proved at trial the following:
In August 2012, law enforcement officers received information that Blair Clymer was selling prescription pills in the Bozeman area.
In October 2012, they received information that she was selling heroin.
On December 2, 2012, an anonymous male advised the Bozeman Police Department that Clymer was selling heroin in Bozeman. The man misspelled Clymer's name, but provided a physical description and said that Clymer was originally from Michigan. The man said he was providing information because Clymer got his friend addicted to heroin.
During the week of December 10, 2012, a DEA agent in Flint, Michigan told a detective with the Missouri River Drug Task Force (MRDTF) he had learned that Clymer had been receiving shipments of heroin in Montana from a man in Michigan named Joshua Hampton Murphy.
On January 4, 2013, the DEA agent located two USPS shipping labels from the post office in Flint, Michigan, which indicated packages were sent to Clymer on December 27, 2012.
On January 9, 2013, MRDTF made a controlled purchase of five "points" of heroin from Clymer for $350. The heroin received from Clymer was packaged in individual "jeweler's" style bags with batman symbols on them. The bags, including the heroin, weighed approximately one gram.
On January 17, 2013, the DEA in Flint, Michigan intercepted a package intended for Clymer. During a subsequent search, law enforcement officers discovered the package contained a bubble-wrapped jar of peanut butter and the seal on the peanut butter had been broken. Inside the jar they located three separate plastic bags. Two of the bags contained what the DEA listed as "pharmaceutical controlled substances" and one package contained 90 gross grams of heroin.
After reviewing surveillance video from the post office in Flint, Michigan, the DEA was able to see that the package had been shipped by a person believed to be MURPHY. The tracking number for the package was EH807537175US. Law enforcement eventually discovered a series of text messages between MURPHY and Clymer on January 19, 2013, during which MURPHY provided Clymer with that tracking number.
On January 25, 2013, Clymer contacted a U.S. Postal Inspector to inquire as to the whereabouts of the package that was intercepted by the DEA in Michigan on January 17.
On January 29, 2013, MRDTF agents made a controlled purchase of five points of heroin from Clymer for $350. The heroin received from Clymer was packaged in individual baggies. The baggies and the heroin had a combined weight of 0.8 grams.
On February 1, 2013, MRDTF agents made another controlled purchase of heroin from Clymer. During that transaction, a confidential informant paid Clymer $400 and received seven points of heroin in baggies that had a Nike "Swoosh" and Batman symbols on them. The total weight of the seven bags and the heroin was 1.1 grams. During this controlled purchase MURPHY was identified as being with Clymer.
On February 7, 2013, the DEA in Michigan informed the MRDTF that the U.S. Postal Inspector in Michigan had identified another package being sent to a salon in Bozeman, from a person believed to be MURPHY. The DEA and a postal inspector searched the package pursuant to a search warrant and found that it contained a peanut butter jar with approximately 45 grams of heroin, among other items. This package was sent to the Postal Inspector in Montana who assisted the MRDTF with a controlled delivery of the package on February 9, 2013. A search of Clymer's cell phone on February 27, 2013, included a text conversation between Clymer and MURPHY where Clymer provided MURPHY the "To" and "From" addresses to be used for the package. MURPHY later provided the tracking number for the package of EG937161986US, which was the same number on the package received by the Postal Inspector for the controlled delivery.
On February 9, 2013, the MRDTF performed a controlled delivery of the package sent by MURPHY to the salon. During the controlled delivery, both the addressee and Clymer were present in the business. Clymer was found to be in possession of 12 individual jewelry-style baggies containing heroin that weighed a total of 2.9 grams.
Additional investigation revealed that Clymer used Money Gram to send money to MURPHY. Records were subpoenaed and analyzed. From August 29, 2012 to January 30, 2013, Clymer sent approximately $9,700 from Montana to MURPHY in Michigan.
On May 23, 2013, law enforcement officers in Michigan arrested MURPHY for his involvement in the conspiracy in this case. After he was arrested, MURPHY admitted that he had been sending heroin to Clymer in Montana.
Clymer pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that MURPHY will likely serve all of the time imposed by the court. In the federal system, MURPHY does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation, the Missouri River Drug Task Force, the Drug Enforcement Administration in Michigan, and the U.S. Postal Inspection Service.
Jonathan W. Walker Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on October 24, 2013, before U.S. District Judge Sam E. Haddon, JONATHAN W. WALKER, a 29-year-old resident of Billings, was sentenced to a term of:
- ison: 24 months
- ecial Assessment: $200
- pervised Release: 3 years
WALKER was sentenced in connection with his guilty plea to (2) counts of possession of stolen firearms.
In an Offer of Proof filed by Assistant U.S. Attorney Brendan P. McCarthy, the government stated it would have proved at trial the following:
In May of 2012, a resident of Billings (L.L.) reported to the police that several items, including numerous firearms, were stolen from his home while his was out of the country for work. At a local pawn shop, L.L. recognized some of his stolen property. The store's records showed that WALKER had sold the items to the store. The store's records further revealed that WALKER had pawned about ninety items in a one to two week period. One of the items WALKER pawned was an Interarms, model Virginia Dragoon, .44 magnum revolver, which was one of the firearms L.L. reported missing.
On November 8, 2012, there was a report of numerous burglaries at a storage facility in Billings. One individual, J.O. reported that two of his firearms were stolen, including a Mossberg pump action, wood stock shotgun.
On November 18, 2012, Billings resident J.K. reported that sometime between November 17th and 18th someone broke into his vehicle and stole numerous items including a Savage Model 16 caliber .300 rifle.
On January 3, 2013, a detective with the Billings Police Department went to a store as part of his investigation into numerous burglaries in Billings. An employee informed the detective that a couple months prior he had bought two firearms from WALKER. He stated that he personally purchased the firearms and it was not related to the store where he was employed. The employee first purchased a Savage Model 16 caliber .300 rifle. Two weeks later, he purchased a Mossberg .12 gauge shotgun.
The employee stated that WALKER sold the firearms out of a U-Haul truck. When the employee purchased the firearms, he also saw many other items such as books, dolls, and couches in the U-Haul.
Detectives continued to investigate a string a burglaries at the storage facility. They learned that during the time period that the burglaries allegedly occurred, the passcode of one renter, B.C., was used numerous times to enter the facility. Detectives then spoke with B.C. and she stated that a man who lived in her apartment complex, T.B., had offered to clear out the items from her storage unit.
Detectives then spoke with T.B. T.B. admitted to using B.C.(s password to gain entry into the facility. He and two other people, WALKER and A.L., would steal items from other peoples' storage units. T.B. said that WALKER would cut the locks and then they would steal the items. WALKER and A.L. would use a U-Haul truck to load the stolen items. WALKER also rented his own unit at the facility, and they would keep the stolen items there before transporting them to a different location.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that he will likely serve all of the time imposed by the court. In the federal system, he does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Billings Police Department.
Jason Pleau Sentenced to Life in Federal Prison for Murder and Robbery of David MainRead the Press Release
PROVIDENCE, R.I. – Jason W. Pleau, 35, of Providence, R.I., was sentenced today in U.S. District Court in Providence to life in federal prison without the possibility of release for the murder and robbery of Woonsocket, R.I., gas station manager David D. Main. Pleau chased, shot at close range and robbed Mr. Main on September 20, 2010, as he approached the doorstep of a Woonsocket bank where he was to have deposited receipts belonging to the gas station that he managed.
Pleau pled guilty on July 31, 2013, to conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and carrying, using, and discharging a firearm during and in relation to a federal crime of violence, death resulting. Pleau pled guilty as charged in an indictment returned by a federal grand jury on December 14, 2010.
Pleau’s sentence, imposed by U.S. District Court Judge William E. Smith, was announced by United States Attorney Peter F. Neronha; Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; Rhode Island Attorney General Peter F. Kilmartin; Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police; Woonsocket Police Chief Thomas S. Carey; and Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI.
Jose A. Santiago, 36, formerly of Springfield, Mass., a co-defendant in this matter, pled guilty on September 5, 2013, to conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and carrying, using, and discharging a firearm during and in relation to a federal crime of violence, death resulting. Santiago is scheduled to be sentenced on January 9, 2014.
A third defendant in this matter, Kelly Marie Lajoie, 35, formerly of Springfield, Mass., pled guilty on December 9, 2011, to Hobbs Act conspiracy; aiding and abetting a Hobbs Act robbery; and use of a firearm during a federal crime of violence. A sentencing hearing has not been scheduled.
The case was prosecuted by Assistant U.S. Attorneys Adi Goldstein and William J. Ferland and Trial Attorney Jacabed Rodriguez-Coss of the Criminal Division's Capital Case Section.
The matter was investigated by the Woonsocket Police Department, Rhode Island State Police and the Federal Bureau of Investigation.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/Contact: 401-709-5357
[email protected]Investment Advisor and Real Estate Developer Charged with Causing $5.5 Million Loss to 25 Investors in $9 Million Fraud SchemeRead the Press Release
CHICAGO ― A former securities broker and his associate in a real estate business that converted apartments into condominiums were indicted for allegedly fraudulently raising more than $9 million from approximately 25 investors and misappropriating a substantial portion of the money, resulting in a loss of at least $5.5 million. The defendants, MARCIN MALARZ and ARTHUR LIN, allegedly used the investors’ funds for their own personal use, as well as to make Ponzi-type payments to certain investors.
Malarz, 39, formerly of Lake Forest, and Lin, 48, of Palatine, were each charged with three counts of wire fraud in an indictment returned yesterday by a federal grand jury. Lin will be arraigned on date to be determined in U.S. District Court, while Malarz is a fugitive and is believed to be living in Poland.
According to the charges, Lin was a branch office manager of a securities broker-dealer in Itasca and also an officer of Malarz Equity Investments LLC (MEI), which was managed by Malarz and sold condominiums after purchasing apartment buildings and converting the units. Lin recruited investors for Malarz and MEI from his securities firm’s client pool. In some cases, Lin allegedly convinced his clients to take out home equity loans or liquidate their brokerage investments to generate money to invest with MEI.
Between November 2005 and April 2010, Malarz and Lin fraudulently offered and sold investments in promissory notes and obtained loans personally secured by Malarz, while making false representations about the risks involved in investing and lending money to MEI, the charges allege. Specifically, they made false representations about: the solvency and financial condition of MEI and Malarz; the expected and actual returns on investments and loans, the ways the investors’ funds would be used; and Malarz’s ability to personally guarantee the investments and loans, according to the indictment.
Malarz allegedly misappropriated approximately $2 million for his personal use, including funds to pay outside business expenses, travel and living expenses, such as credit card and home mortgage bills, furniture, clothing, and a Mercedes automobile.
Malarz and Lin allegedly paid hundreds of thousands of dollars from investors’ funds to Lin’s wife, often in amounts approximating 10 percent of the funds that Lin brought to MEI. Lin used these funds to pay personal expenses, including credit card and home equity loan payments.
The indictment seeks forfeiture of alleged fraud proceeds totaling at least $5.5 million as well as Lin’s residence in Palatine and additional homes in Palatine and Barrington.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Securities and Exchange Commission, which filed its own civil enforcement action against the defendants, provided assistance
The government is being represented by Assistant U.S. Attorney Rachel Cannon.
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.
The investigation falls under the umbrella of the Financial Fraud Enforcement Task Force, which 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. For more information on the task force, visit: www.StopFraud.gov.
Indictment
Informational: Federal Court Initial AppearancesRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on October 24, 2013, before U.S. Magistrate Judge Keith Strong, the following individuals were arraigned:
SHANE HIAWATHA DENNY, a 37-year-old resident of Box Elder, appeared on charges of assault with intent to commit murder, assault with a dangerous weapon, and assault resulting in serious bodily injury. He is currently detained. If convicted of these charges, DENNY faces possible penalties of 20 years in prison, a $250,000 fine, and 3 years supervised release on the first charge; and 10 years in prison, a $250,000 fine, and 3 years supervised release on each of the last two charges. Assistant U.S. Attorney Danna R. Jackson is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
TYLER LEE BALIBARDIN, a 21-year-old resident of Tacoma, Washington, appeared on (3) charges of sexual abuse of a minor. He is currently released on special conditions. If convicted of these charges, BALIBARDIN faces possible penalties of 15 years in prison, a $250,000 fine, and lifetime supervision on each charge. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
GUILLERMO QUINTERO REGINO, a 43-year-old resident of San Diego, California, appeared on charges of conspiracy to distribute cocaine and conspiracy to distribute heroin. He is currently detained. If convicted of these charges, REGINO faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $10,000,000 fine, and 5 years supervised release on each charge. Assistant U.S. Attorney Tara J. Elliott is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
MICHAEL NOLEMANA LOPES, age 27, and LAURA LYNN SEVERANCE, age 26, residents of Helena, each appeared on charges of conspiracy to possess with the intent to distribute methamphetamine, possession with the intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug-trafficking crime. They are currently detained. If convicted of these charges, they each face possible penalties of a mandatory minimum of 5 years in prison and could be sentenced to 40 years, a $5,000,000 fine, and 4 years supervised release on each of the first (2) charges. In addition, they each face an additional mandatory minimum of 5 years in prison, consecutive to any other sentence, for the possession of a firearm in furtherance of a drug-trafficking crime. Assistant U.S. Attorney Michael S. Lahr is the prosecutor for the United States. The investigation was conducted by the Drug Task Force.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court Initial AppearancesRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on October 25, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individuals were arraigned:
CHARLES JOSEPH WALKS, a 29-year-old resident of Crow Agency, appeared on a charge of assault on a federal officer. He is currently detained. If convicted of this charge, WALKS faces possible penalties of 20 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Lori Harper Suek is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
GEORGE MORRIS PARISIAN, age 50, and TAMMIE MARIE PARISIAN, age 49, residents of Shepherd, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and money laundering. They are currently detained. If convicted of these charges, they each face possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $4,000,000 fine, and 5 years supervised release on each of the first (2) charges; and 20 years in prison, a $500,000 fine, and 3 years supervised release on the last charge. Assistant U.S. Attorney Lori Harper Suek is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation Drug Task Force.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court Initial AppearancesRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on October 24, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, the following individuals were arraigned:
BARBARA SWEENEY, a 62-year-old resident of Noxon, appeared on a charge of theft of government funds. She is currently released on special conditions. If convicted of this charge, SWEENEY faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Chad C. Spraker is the prosecutor for the United States. The investigation was conducted by the Social Security Administration - Office of Inspector General.
AMBER TYLER, a 31-year-old resident of Missoula, appeared on a charge of theft of government funds. She is currently released on special conditions. If convicted of this charge, TYLER faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Chad C. Spraker is the prosecutor for the United States. The investigation was conducted by the U.S. Department of Health and Human Services - Office of Inspector General.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on October 18, 2013, before Chief U.S. District Judge Dana L. Christensen, the following individual was arraigned:
JAMES ZANDER, a 62-year-old resident of Great Falls, appeared on charges of attempt to evade or defeat income tax and corrupt endeavor to obstruct or impede the due administration of the Internal Revenue laws. He is currently released on special conditions. If convicted of these charges, ZANDER faces possible penalties of 5 years in prison, a $250,000 fine, and 3 years supervised release on the first charge; and 3 years in prison, a $250,000 fine, and 3 years supervised release on the second charge. Assistant U.S. Attorney Chad C. Spraker is the prosecutor for the United States. The investigation was conducted by the Criminal Investigation Division of the Internal Revenue Service.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on October 22, 2013, before Chief U.S. District Judge Dana L. Christensen, the following individual was arraigned:
GARCIA DURAN, a 35-year-old resident of Box Elder, appeared on charges of theft from an Indian Tribal organization. He is currently released on special conditions. If convicted of these charges, DURAN faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Chad C. Spraker is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on October 21, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
ROBERT JAMES SCHEAFFER, JR., a 49-year-old resident of Harlem, appeared on a charge of sexual abuse of a minor. He is currently detained. If convicted of this charge, SCHEAFFER faces possible penalties of 15 years in prison, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Jessica A. Betley is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation/
The defendant pled not guilty to the charge.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Indiana Physician Pleads Guilty to Failure to Pay Employment TaxesRead the Press Release
Dr. Ronald Eugene Jamerson of Schererville, Ind., entered a guilty plea to one count of willfully failing to truthfully account for, collect and pay over employment taxes to the Internal Revenue Service (IRS), the Department of Justice and IRS announced today. Under the terms of the plea agreement, Jamerson also agreed to pay restitution in the amount of $541,083.20 to the IRS.
On June 20, 2012, Jamerson was indicted on 11 counts of willfully failing to file quarterly employment tax returns (Forms 941) with the IRS and willfully failing to pay over to the IRS the federal income taxes and the Federal Insurance Contributions Act (FICA) taxes due and owing from the second quarter of 2006 through the fourth tax quarter of 2008. According to the indictment and other court pleadings, Jamerson, an ear, nose and throat surgeon who opened his own medical practice in the late 1990s, deducted and collected from his employees’ paychecks federal income taxes and FICA taxes, but he failed to file the employment tax returns and related employment taxes from 2003 through 2008. In the plea agreement, Jamerson agrees that the total tax loss based on his failure to report and pay employment taxes is $541,083.20.
Sentencing is scheduled for Jan. 24. 2014. Jamerson faces a maximum penalty of five years in prison, three years of supervised release and a maximum fine of $250,000.
The case was investigated by Special Agents from IRS - Criminal Investigation and prosecuted by Justice Department Trial Attorneys Erin S. Mellen and Chris J. Maietta, with valuable support from the United States Attorney’s Office in Hammond, Indiana.
Illegal Alien Sentenced to 108 Days in PrisonRead the Press Release
ALBANY, NEW YORK –HERBERTO BALDOMERO COBON-VASQUEZ, age 34, of Cobleskill, New York, was sentenced today to “time served” (108 days) for illegally reentering the United States after removal by United States District Judge Mae A. D’Agostino announced United States Attorney Richard S. Hartunian and Department of Homeland Security Director of Enforcement and Removal Operations Thomas Homan. COBON-VASQUEZ was remanded to the custody of the Department of Homeland Security for removal proceedings. Today’s sentencing followed COBON-VASQUEZ’s August 28, 2013, guilty plea.
COBON-VASQUEZ, a citizen of Guatemala, was deported to Guatemala on February 8, 2001. He unlawfully re-entered the United States and, on July 1, 2013, was found in Cobleskill, New York, after he was involved in a traffic accident and arrested for driving without a license.
This case was prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Ideal Man Charged with Failure to Register as A Sex Offender, False Statement and Simple AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Loren Running Horse, a/k/a Boe Running Horse, age 43, of Ideal, South Dakota, appeared before U.S. District Judge Roberto A. Lange on October 22, 2013, and pled guilty to Failure to Register as a Sex Offender, False Statement, and Simple Assault of an Individual Under the Age of 16.
The maximum penalty upon conviction is 16 years in custody and/or a $600,000 fine, life of supervised release, and $225 to the Federal Crime Victims Fund.
On June 6, 1998, Running Horse was convicted of Sexual Abuse of a Minor. As a result of that conviction, Running Horse was ordered to register as a sex offender and was aware of his duty to do so. However, between February 4 and March 4, 2013, Running Horse was living in various locations on Rosebud, and during that time he failed to register as a sex offender. Running Horse was apprehended in Todd County on March 4, 2013. On March 5, 2013, Running Horse told a federal officer that he did not relocate to Rosebud until March 4, when in fact knew this statement to be false. Running Horse relocated to the Rosebud Reservation on or about January 2, 2013.
The assault charge stems from an incident that happened on or between January 19 and 24, 2013, while Running Horse was residing at a home in Rosebud where the victim was also living. Running Horse assaulted the minor victim by pushing him. The victim was 13 years old at the time of the simple assault.
The investigation was conducted by the U.S. Marshals Service and the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date was set for January 13, 2014. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.Houston Man Pleads Guilty to Criminal Copyright Infringement in Connection with Selling Pirated SoftwareRead the Press Release
ALEXANDRIA, Va. – Charles Daniel Stephens, 40, of Houston, Texas, pleaded guilty today to criminal copyright infringement.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division, and Lev Kubiak, Director of the National Intellectual Property Rights Coordination Center, made the announcement after the plea was accepted by United States District Judge James C. Cacheris.
Stephens pleaded guilty to a criminal information filed on October 8, 2013 charging one count of criminal copyright infringement. Stephensfaces a maximum penalty of five years’ imprisonment and forfeiture of over $28,000 when he is sentenced on January 17, 2013.
In a statement of facts filed with the plea agreement, Stephens admitted to selling pirated computer software online, including products from Rosetta Stone Inc., headquartered in Arlington, Virginia, and products from Microsoft, Adobe Systems, Intuit, and Symantec, from September 2008 through November 2012. Stephens received at least $154,000 in proceeds from these sales.
This case was investigated by the HSI–led IPR Center. Assistant United States Attorney Alexander T.H. Nguyen and Special Assistant United States Attorney Peter V. Roman of the Department of Justice’s Computer Crimes and Intellectual Property Section are prosecuting the case on behalf of the United States.
The IPR Center in Washington is one of the U.S. government's key weapons in the fight against criminal counterfeiting and piracy. Working in close coordination with the Department of Justice Task Force on Intellectual Property, the IPR Center uses the expertise of its 21 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to intellectual property theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety and the U.S. economy. To report IP theft or to learn more about the IPR Center, visit www.IPRCenter.gov.
The enforcement action announced today is one of many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity and innovation. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state, and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce/.
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.Hogsett Announces Guilty Plea in Connection with Testing of A Natural Gas PipelineRead the Press Release
Indianapolis – Joseph H. Hogsett, the United States Attorney, announced today that Eric L. Barnes, age 48, pleaded guilty and was sentenced in the Southern District of Indiana for making false statements in connection with the testing of pipeline welds at a natural gas pipeline compressor station Bainbridge, IN.
“We know all too well the devastation natural gas explosions can cause,” said Steven D. DeBrota, Senior Litigation Counsel for the United States Attorney’s Office. “Maintaining the integrity of our natural gas lines is important to keeping Hoosiers safe.”
The defendant was employed as a Level II Radiograph Technician and from June through October 2008, was responsible for testing pipeline welds at a compressor station under construction in Bainbridge, IN. The process involved taking an x-ray of the weld and creating a report indicating whether the weld was acceptable. On five different occasions, the defendant created a report confirming that certain pipe welds had been tested and were approved when he had not confirmed that the welds had actually been tested. On these occasions, multiple pictures of one weld had been taken and marked with separate identification numbers, to make it appear that the x-ray was of different pipe welds, when only one weld had actually been x-rayed.
The Department of Transportation, Pipeline and Hazardous Material Safety Administration (PHMSA) has jurisdiction over interstate natural gas and hazardous liquid pipelines. Pipeline safety requires nondestructive testing of pipeline welds to confirm the integrity and sufficiency of the welding process. The results of the testing must be maintained for the life of the pipeline.
“This investigation demonstrates our commitment to maintaining the safety and integrity of the nation’s pipelines,” said Michelle T. McVicker, regional Special Agent-In-Charge of the United States Department of Transportation’s Office of Inspector General. “Working with our law enforcement and prosecutorial colleagues, we will continue our vigorous efforts to protect the taxpayers’ investment in our nation’s transportation infrastructure, and prosecute to the fullest extent of the law those who would seek to violate the public trust.” Barnes was sentenced to two years probation and ordered to serve 40 hours of community service. All of the questionable pipe welds were retested before the pipeline was put into operation.
The case was investigated by the Department of Transportation, Office of Inspector General. Senior Trial Attorneys Jennifer Whitfield and David Kehoe of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division along with Senior Litigation Counsel Steven DeBrota of the Southern District of Indiana are the prosecutors in charge of the case.
Heather Lynn Stiltner Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on October 23, 2013, before U.S. District Judge Sam E. Haddon, HEATHER LYNN STILTNER, a 35-year-old resident of Billings, was sentenced to a term of:
- ison: 136 months
- ecial Assessment: $100
- rfeiture: firearms
- pervised Release: 5 years
STILTNER was sentenced in connection with her guilty plea to possession with intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Brendan P. McCarthy, the government stated it would have proved at trial the following:
On October 5, 2012, employees from the UPS store in Billings flagged a suspicious package that was to be sent from Billings to Phoenix, Arizona. The package was intercepted at the UPS freight office on South 20th Street in Billings by a UPS investigator. The UPS investigator received consent from the store owner to open the package, and the package contained $11,000 in cash. The shipper of the package listed her address as a Billings address.
The investigator also discovered that since June of 2012 there were fifteen packages sent from the Billings address to the Phoenix address and fifteen packages sent from Phoenix to addresses in Billings. The investigator notified the Billings Police Department about the package. A Billings Police officer responded to the scene and a canine sniff test was performed. The canine positively identified the presence of narcotics.
On October 31, 2012, detectives spoke with the owner of the UPS store. The owner stated that one week earlier a woman came into the store inquiring about the package. The owner took a photo on his cell phone of the license plate on the car the woman was driving. The detectives then found that the vehicle was registered to STILTNER. The detectives obtained a photo of STILTNER and showed it to the UPS store employee. The employee identified STILTNER as the person who sent the suspicious package.
On November 2, 2013, detectives executed the search warrant for STILTNER's residence in Billings. Detectives found the following items during the search: a torch, 9mm ammunition, a digital scale, a safe, ammunition inside the safe, two cell phones with numerous text messages that appear to be related to drug distribution, $3,700 in U.S. currency, a crystalline substance in a plastic bag, a Bersa handgun B7449 under the mattress, a Pink Lady Revolver under the mattress, a pink piece of paper with the Phoenix address on it, a rifle and magazine inside a black gun case, and additional plastic bags with crystal substance.
The total amount of methamphetamine seized from STILTNER's residence was 306.49 grams. The methamphetamine was subsequently sent to the DEA laboratory for testing, and the results revealed that the total amount of actual (pure) methamphetamine was 253 grams.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that she will likely serve all of the time imposed by the court. In the federal system, she does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation Task Force.
Gaines County Man Admits Possessing Prepubescent Child PornographyRead the Press Release
LUBBOCK, Texas — Jose Fidencio Perez, 40, of Seagraves, Texas, pleaded guilty today, before U.S. District Judge Sam R. Cummings, to one count of possession of prepubescent child pornography and aiding and abetting. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Perez, who remains on bond, faces a maximum statutory penalty of 20 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 documents filed in the case, Perez used a file sharing program on his computer to download child pornography. In the course of searching for depictions of sexually explicit conduct, Perez downloaded and viewed numerous videos depicting minors engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Office of the Attorney General of New Mexico Investigations Division. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Four Men Sentenced to 60 Years Each for Multiple Armed Robberies During December 2012 Holiday SeasonRead the Press Release
ALEXANDRIA, Va. – Keith Willie Reed, 24, of Washington, D.C.; Tobias Richard Dyer, 21, of Upper Marlboro, Md.; Anthony Cannon, 24, of Washington, D.C.; and Stanley Winston, 23, of Washington, D.C., were each sentenced today to 60 years in prison, followed by 5 years of supervised release, for conspiracy, robbery affecting interstate commerce, armed robbery of a credit union, use of a firearm during crimes of violence, and being felons in possession of firearms. They were also ordered to pay restitution in the amount of $76,915.15.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by United States District Judge Claude M. Hilton
Reed, Dyer, Winston, and Cannon were found guilty after a jury trial on June 21, 2013. According to court records and evidence adduced at trial, the defendants committed three armed robberies in Northern Virginia during the December 2012 holiday season. Specifically, on December 7, they robbed VVM, Inc., located in Fairfax County, Virginia. Two days later, they robbed the Shoppers Food Warehouse on Jefferson Davis Highway in Alexandria, Virginia. Then, on December 22, they robbed the Navy Federal Credit Union on Randolph Street in Arlington, Virginia. The total loss amount from these three armed robberies was over $75,000. In each robbery, three of the defendants entered masked while the fourth waited in a stolen getaway car. All four were arrested within an hour of the Navy Federal Credit Union robbery when law enforcement was able to track the money.
This case was jointly investigated by FBI’s Washington Field Office and Baltimore Field Office, and the Metropolitan, Fairfax County, Arlington County, and Alexandria Police Departments. Assistant United States Attorneys Patricia T. Giles and Rebeca H. Bellows are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Four Men Sentenced for Fraud Involving Sports MemorabiliaRead the Press Release
ROCKFORD – Three men were sentenced today in federal court by U.S. District Judge Philip G. Reinhard on separate fraud schemes involving the sports memorabilia business and the purchase and sale of equipment and uniforms used by professional and collegiate athletes: BERNARD GERNAY, 39, a resident of Howell, N.J., involved in the business operations of Pro Sports Investments, Inc., a New Jersey business, and JARROD OLDRIDGE, 39, a resident of Las Vegas, involved in business operations of JO Sports, Inc., a Nevada business, were each sentenced to 6 months in federal prison; and BRADLEY HORNE, 41, a Sunset, S.C. resident, involved in the business operations of Authentic Sports Memorabilia, Inc., a South Carolina business, was sentenced to 3 months in federal prison. In addition, each defendant was also ordered to serve 3 years of supervised release following release from prison, and restitution for each defendant will be determined within 60 days of sentencing.
All three men pled guilty to mail fraud charges on Nov. 21, 2011. According to the plea agreements, each case involved the sale, consignment, or auction of jerseys, in which each defendant falsely and fraudulently represented to buyers that the jerseys were “game used,” when they were not. Jerseys worn by professional and collegiate athletes during a game are usually known as “game used” or “game worn,” and are commonly bought and sold by collectors and others. The value of game used jerseys varies based on the popularity of the player that used the jersey and how long it had been since the player had actively played the sport. The value of a jersey was greater if it was game used. The fraud charges also involved the defendants selling what were represented to be game used jerseys to other persons knowing the jerseys were intended to then be sold to sports trading card companies. As stated in the charges, to increase the value and price of packages of sports trading cards, manufacturers frequently purchase game used jerseys, cut the jerseys into small pieces, and insert the pieces into card packages. When game used jerseys were purchased for this purpose, the manufacturers often required that the seller provide a "certificate of authenticity" that the jerseys were authentic game used jerseys.
Gernay, Oldridge and Horne each admitted the jerseys they sold were altered to appear game worn, such as replacing the name and number on a jersey from one player to another more noteworthy player, changing the shape of the jerseys, and adding patches or other identifiable marks on the jerseys. Even though jerseys were not game used, the three men sold the jerseys to other persons they knew intended to re-sell, consign, and auction the jerseys, or to sports trading card companies and others, by falsely representing the jerseys were game used.
A fourth man, Bradley Wells, 32, of St. Petersburg, Fla., was charged in an indictment on Oct. 25, 2011, with a similar fraud scheme between 2005 and 2009 under the name Authentic Sports, Inc., Historic Auctions, LLC, and his own name, to market and sell fraudulent sports memorabilia represented as “game used.” Wells pled guilty to mail fraud on Sept. 6, 2012, and was sentenced on Oct. 16, 2013, to 6 months in federal prison, to be followed by 3 years of supervised release, with restitution to be determined within 60 days of his sentencing.
The sentencings were announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Shields, Jr., Acting Special Agent-In-Charge of the Chicago Office of the Federal Bureau of Investigation
The government was represented by Assistant U.S. Attorney Michael D. Love.
Fort Worth Man Faces up to 30 Years in Federal Prison for Producing Child PornographyRead the Press Release
FORT WORTH, Texas — Dwight L. Looney, 62, appeared this morning before U.S. District Judge John McBryde and pleaded guilty to one count of production of child pornography. He faces a statutory penalty of not less than 15 years or more than 30 years in federal prison, up to a $250,000 fine and up to a lifetime of supervised release. He will remain in custody pending sentencing, which is set for February 7, 2014, before Judge McBryde. 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, in May 2010, Looney knowingly used, persuaded and enticed “Jane Doe” to engage in sexually explicit conduct, and Looney used a digital camera to take a still image of that conduct. Jane Doe was younger than 16 years old at the time.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Fort Worth Police Department. Assistant U.S. Attorney Aisha Saleem is in charge of the prosecution.
Former USAID Senior Official to Pay Civil Penalty for<br /> Alleged Conflict of Interest ViolationRead the Press Release
David Ostermeyer, who retired from the U.S. Agency for International Development (USAID) in 2012, will pay the government a $30,000 penalty to settle allegations that he participated in a matter in which he had a financial interest that conflicted with his duties when he was Chief Financial Officer of the agency, the Justice Department announced today.
“We expect government officials to earn and maintain the trust of taxpayers by acting with the highest integrity,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “This requires, at a minimum, that they do their work free of prohibited conflicts of interest. The Justice Department will pursue those who violate their ethical obligations.”The government alleged that shortly before Ostermeyer retired from USAID, he helped the agency draft a contract solicitation for a senior advisor – a position that Ostermeyer intended to apply for after he retired . In an effort to ensure he would be awarded the position, Ostermeyer allegedly tailored the solicitation to his specific skills and experiences.
Federal conflict of interest laws prohibit executive branch employees from participating personally and substantially in matters in which they have a financial interest. Since Ostermeyer had a financial interest in the contract solicitation, the government alleged that he could not participate in drafting it and, therefore, violated 18 U.S.C. § 208(a).
“To maintain public trust in our institutions, it is vital that those in government adhere to the highest standards of integrity,” said Michael Carroll, Acting Inspector General for USAID. “The exceptional work of the investigators and attorneys on this case reflects our resolve to uphold these standards.”This settlement was the result of a coordinated effort by the Justice Department’s Civil Division and USAID’s Office of Inspector General. The claims resolved by this settlement are allegations only; there has been no determination of liability.
Former Hip-Hop Manager James Rosemond, Leader of A Notorious Drug Trafficking Organization, Sentenced to Life in PrisonRead the Press Release
Earlier today, James Rosemond, also known as “Jimmy Henchman,” was sentenced to mandatory life imprisonment in federal court in Brooklyn, New York, for leading a continuing criminal enterprise (the “Rosemond Organization”) that distributed thousands of pounds of cocaine, the majority of which was sold on the streets of Brooklyn and Queens. Rosemond was also sentenced for numerous narcotics conspiracy offenses, firearms possession, money laundering, structuring, and obstruction of justice. Rosemond was convicted of all thirteen counts in his indictment, following a three-week jury trial in May 2012. As part of the sentence, Rosemond forfeited $10 million, along with property worth approximately $4 million.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Brian Crowell, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York, and Tony Weirauch, Special Agent-in-Charge, Internal Revenue Service (IRS), Criminal Investigation, New York. The sentence was imposed by United States District Judge John Gleeson.
ARosemond styled himself a hip hop mogul, bringing the music of the streets to a wider audience and expanding opportunities of artists. In reality, his image as a music impresario was a cover for the real Jimmy Rosemond – a thug in a suit who flooded those same streets with cocaine, and shuttled drugs and money from coast to coast. Today’s life sentence is a fitting end to the Henchman’s two-faced machinations,” stated United States Attorney Lynch. “Along with our partners in law enforcement, this Office is committed to ridding our communities of the scourge of drugs and guns.@ Ms. Lynch extended her grateful appreciation to the DEA, the IRS, the U.S. Postal Inspection Service, the United States Marshals Service, and the Department of Justice, Office of Inspector General, for their work on the case.
DEA Special Agent-in-Charge Crowell stated, “A life of luxury as an entertainment CEO built on a foundation of drug trafficking has resulted in a lifetime prison sentence. Drug trafficking does not pay off at the end of the day. As the head of this organization, Rosemond was overseeing the distribution of 50 to 100 kilos of cocaine per month into our communities while utilizing his position in the music industry to evade law enforcement. He oversaw an $11 million a year cocaine trafficking enterprise that transported cocaine in exchange for cash which was hidden in music equipment across the country. I commend the men and women of the DEA New York, Los Angeles, and Atlanta Divisions, as well as the IRS, USMS, USPS, DOJ OIG, and the United States Attorney’s Office, Eastern District of New York, whose diligence uncovered and completely dismantled this organization.”
IRS Special Agent-in-Charge Weirauch stated, “It is a good day for the American public whenever a narcotics trafficking organization is dismantled. As is typical in these investigations, the government has not only taken a supplier of illegal drugs off the streets, but has seized the assets that can be used in the fight against other such enterprises. IRS-Criminal Investigation proudly stands with our law enforcement partners in recognizing this accomplishment and looks forward to sharing our financial investigative expertise in the investigation and prosecution of other narcotics organizations.”
At trial, the evidence established that Rosemond was the leader of a large-scale, bi-coastal narcotics-trafficking organization that shipped cocaine from Los Angeles, California, to the New York City metropolitan area and that, in turn, shipped cash proceeds from narcotics sales back to Los Angeles. The organization used a variety of shipping methods as part of its operation, including Federal Express and UPS to ship boxes of mustard-covered cocaine and drug money, as well as a music equipment shipping company to transport cocaine and drug money concealed in music equipment cases.
During the investigation, federal law enforcement agents made multiple seizures of drugs, money, firearms, and tools of the narcotics distribution trade belonging to the Rosemond Organization. For example, in April 2010, law enforcement seized 27 kilograms of cocaine. As part of the seizure, law enforcement conducted a search of one of Rosemond’s stash houses in Queens, which yielded 12 kilograms of cocaine, a machine gun, ammunition, and a variety of drug trafficking paraphernalia, including kilo presses, scales, and vacuum sealed bags used to package drugs and money. On that same day, law enforcement also seized a vehicle containing a trap designed to conceal contraband. In December 2010, law enforcement seized over $785,000 in cash proceeds from narcotics trafficking, stored in a music equipment case at a rehearsal studio in Manhattan. In total, between 2008 and 2010, law enforcement in New York and California seized over $2.8 million of the Rosemond Organization=s drug proceeds.
Trial testimony also established that on May 11, 2011, Rosemond sold a kilogram of cocaine to a cooperating witness. After a warrant was issued for his arrest later that day, Rosemond fled, resulting in a manhunt lasting nearly two months that ended when he was apprehended in late June 2011.
To date as a result of this investigation, 19 members and associates of the Rosemond Organization have been convicted.
The government’s case was prosecuted by Assistant United States Attorneys Todd Kaminsky, Soumya Dayananda, Lan Nguyen, Una A. Dean, Carolyn Pokorny, and Karin Orenstein.
The Defendant
JAMES ROSEMOND
Brooklyn, NY
Age: 48EDNY Docket No. CR-11-424 (JG)
Former Elementary School Principal in Texas Found Guilty for Attempting to Entice A Minor to Engage in Unlawful Sexual ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Jeffrey S. Katz, Chief, Boynton Beach Police Department (BBPD), announce that Stephen Anthony Paulsen, 54, of Fort Worth, Texas, was convicted yesterday of attempting to entice a minor to engage in an illegal sexual activity, after a four day jury trial before U.S. Senior District Judge Daniel T.K. Hurley. At sentencing, the defendant faces a 10 year mandatory term in prison and a maximum term of life.
In July 2013, Paulsen sent numerous sexually explicit messages via a web-based social media application to an undercover officer who posed as 15 year old boy. Paulsen then attempted to meet the minor to engage in illegal sexual activity when Paulsen believed the boy was home alone, at which point he was arrested. At the time of his arrest, Paulsen was in South Florida visiting family.
U.S. Attorney Wifredo A. Ferrer stated, “This conviction represents the fruits of a cooperative effort by local, state and federal authorities in the investigation and prosecution of child exploitation cases. During this time when our children are at ever increasing risk from predators who use social media and the internet, I am thankful to Dave Aronberg and the Palm Beach State Attorney’s Office for joining forces in the cross designation of state prosecutors to attack the problem.”
State Attorney Dave Aronberg commented, “This case is an example of our continued close working relationship with local, state and federal authorities. This combined effort will help remove these sexual predators from our community and make our county and state a safer place to live.”
“Homeland Security Investigations is committed to stopping child predators and their elicit behaviors, especially those individuals in positions of trust with access to children” said Alysa D. Erichs, Special Agent in Charge of HSI Miami. “This case is another example of the extraordinary collaborative efforts among law enforcement in Florida to protect those who can’t protect themselves”.
Chief Jeffrey Katz of the Boynton Beach Police Department added, “One of the primary objectives of the Boynton Beach Police Department is the protection of our community's youth. The Boynton Beach Police Department - in cooperation with our valued federal law enforcement and prosecutorial partners - have taken important steps to protect our children from those who seek to shamelessly exploit their innocence. We remain committed to similar operations going forward.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Project Safe Childhood was launched in May 2006 by the Department of Justice and is led by United States Attorney’s 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.
Mr. Ferrer and Mr. Aronberg commended the investigative efforts of ICE-HSI and the Boynton Beach Police Department. This case was adopted from state prosecution in cooperation with the Palm Beach County State Attorney’s Office and the South Florida Internet Crimes Against Children (ICAC) Task Force. This case is being prosecuted by Assistant U.S. Attorney Adam McMichael and Special Assistant U.S. Attorney and Assistant State Attorney Gregory Schiller.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former California Rap Artist Sentenced to 9+ Years in Prison for Bank Fraud, Access Device Fraud and Aggravated ID TheftRead the Press Release
A California rap artist who performed under the name “Guerilla Black” was sentenced today in U.S. District Court in Seattle to 110 months in prison and five years of supervised release for a scheme to use credit card numbers stolen in Seattle in other states, announced U.S. Attorney Jenny A. Durkan. CHARLES TONY WILLIAMSON, 36, of Torrance, California, was on the user end of the fraud involving hacks of point of sale credit card processing at businesses in Seattle and Shoreline, Washington, and at various businesses across the U.S. WILLIAMSON purchased credit card numbers in bulk from a hacker based in Maryland and from various ‘carding’ websites so that he and his associates could use them for fraud. At sentencing U.S. District Judge Ricardo S. Martinez said, “the impact of the crime is tremendous …from the banks and small businesses” to the runners who now have felony records.
“Undeterred by his first arrest and indictment, this defendant continued to direct platoons of co-schemers to use stolen credit card numbers and continue his digital crime spree,” said U.S. Attorney Jenny A. Durkan. “I commend the dedicated agents who tracked his fraud through cyberspace – using critical skills and techniques to trace both the hacks and the frauds to dismantle the network.”
WILLIAMSON was indicted in July 2012, following the investigation into point of sale hacking at a restaurant in the Magnolia neighborhood of Seattle and a retail store in Shoreline, Washington. Two men have already been sentenced for their roles in the hacking scheme. David Benjamin Schrooten, 21, a Dutch citizen arrested in Romania, where he operated a carding website making the credit card numbers available for fraud was sentenced in February 2012 to 12 years in prison. Christopher A. Schroebel, 21, of Keedysville, Maryland, who hacked into point of sale systems to steal credit card information was sentenced to seven years in prison in August 2012. Schroebel was a key supplier of credit card information to WILLIAMSON.
Between January 11, 2011 and February 26, 2012, WILLIAMSON received and possessed at least 27,257 stolen credit card numbers, including cards issued by American Express, Visa, MasterCard and Discover. The total number of stolen card numbers exceeds 30,000 following WILLIAMSON’s criminal conduct during the period of his pretrial release. Federal law allows for a formula to determine the scope of the fraud by attributing a loss of $500 per credit card number, resulting in an estimated fraud loss in this case of $15 million.
Records in the case reveal how WILLIAMSON communicated by email with co-conspirators, telling them that he wanted to purchase “dumps” of stolen credit card numbers “in bulk,” that is lots of 100, 500 or more. WILLIAMSON indicated that he wanted “freshly” stolen numbers so they would be easier to use, since the customers would not yet know their information had been stolen. Additional records show that while WILLIAMSON was on release pending trial, he continued his criminal conduct by producing counterfeit credit cards and using stolen credit card numbers. WILLIAMSON was rearrested following a lengthy investigation by the Manhattan Beach Police Department, the U.S. Secret Service (USSS) Electronic Crimes Task Force in Seattle and USSS Los Angeles Fraud Task Force. In his plea agreement WILLIAMSON admits the credit card fraud both before and after his arrest on the indictment in the Western District of Washington. WILLIAMSON has remained in custody since his arrest in January 2013.
The case was investigated by the Seattle U.S. Secret Service Electronic Crimes Task Force and Seattle Police Department as part of the Task Force, with assistance provided by the Manhattan Beach (California) Police Department and the Los Angeles Field Office, U.S. Secret Service. The case was prosecuted by Assistant United States Attorney Kathryn Warma.
Former Brokerage Firm Operations Head Indicted for Tax CrimesRead the Press Release
An indictment was unsealed today charging Dominick Pannitti, formerly of North Bellmore, N.Y., with tax crimes, the Justice Department announced.
According to the indictment, which was returned by a grand jury on Sept. 26, 2013, Pannitti was Head of Operations at a securities brokerage firm in Syosset, N.Y. The securities firm had an automated system designed to adjust customers’ trading accounts for amounts less than $1,000. During 2005 and 2006, Pannitti used the automated system to credit his own trading accounts hundreds of times in increments less than $1,000. Pannitti was not entitled to most of these credits, which totaled over $570,000. Pannitti concealed from his accountant the income he obtained and failed to report the income on his tax returns.
A trial date has not been scheduled. An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. Pannitti faces a potential maximum sentence of eight years in prison and a potential fine of up to $500,000.
The case was investigated by the Internal Revenue Service (IRS) - Criminal Investigation and the FBI. The case is being prosecuted by Trial Attorneys Mark Kotila and Jeffrey Bender of the Justice Department’s Tax Division.
Former Bartlett Selectman Convicted of Child Pornography PossessionRead the Press Release
CONCORD, NEW HAMPSHIRE: Jonathan Tanguay, 42, a former selectman of Bartlett, New Hampshire, was convicted in United States District Court for the District of New Hampshire on one count of possession of child pornography, announced United States Attorney John P. Kacavas.
A search warrant executed at Tanguay's home revealed a laptop computer, external hard drive and compact disc containing child pornography images. Tanguay is facing a maximum term of ten years in prison and is scheduled to be sentenced on January 30, 2014.
Special Agent Phil Bleezarde led the investigation for Department of Homeland Security, Immigration and Customs Enforcement Division and Concord Police Detective Mark Dumas, a member of the New Hampshire Internet Crimes Against Children Task Force, was the lead computer forensic examiner on the case. This case was prosecuted by Assistant United States Attorneys Seth R. Aframe and Nick E. Abramson.
This case was prosecuted under Project Safe Childhood, a nationwide initiative by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Florida Fraudster GuiltyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Florida man Craig Lee Workman, age 42, pleaded guilty before Judge William K. Sessions in federal court in Burlington yesterday to a fraud conspiracy.
Workman admitted that during 2010‑12, he used identification information belonging to other persons to file false income tax returns under their names, claiming tax refunds. The fraudulent filings directed the IRS to wire refunds to bank accounts controlled by Workman in Florida and Vermont. He did this about 125 times, 25 times successfully, causing the IRS to pay out around $180,000 in refunds to his banks. There were about 100 unsuccessful 1040 filings, which did not result in refunds. Workman and his spouse bought, among other things, a Mercedes Benz with the proceeds.
In April, 2011, Workman and his spouse visited five different H&R Block offices in northeastern Vermont and nearby New Hampshire. In each, they sought assistance filing tax returns for other persons, whom they described as incarcerated family members.
Workman faces a maximum term of imprisonment of not more than 10 years. The case was investigated by the IRS Criminal Investigation Division. Workman has been detained by the U.S. Marshal=s Service since his arrest in Florida several months ago. He is represented by Federal Public Defender David McColgin. The United States is represented by Assistant U.S. Attorney William Darrow.
Erwin Residents Sentenced for Conspiracy to Manufacture MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – Four individuals involved in a conspiracy to manufacture methamphetamine were sentenced on Oct. 23, 2013, by the Honorable J. Ronnie Greer, U.S. District Judge. Tim Smith, 29, of Erwin, Tenn., was sentenced to serve 92 months in prison. Crystal Williams, 40, of Erwin, Tenn., was sentenced to serve 90 months in prison. Misty Potter, 36, of Erwin, Tenn., was sentenced to serve 66 months in prison. Doug Gaskins, 53, of Erwin, Tenn., was sentenced to serve 54 months in prison.
Each of these individuals pleaded guilty to a March 2013 federal indictment charging a total of 25 individuals with conspiracy to manufacture methamphetamine. Three additional separate but related conspiracies to manufacture methamphetamine cases from in and around the Erwin area were also recently prosecuted in U.S. District Court, resulting in the conviction of a total of 52 individuals. Sentencing is currently pending for approximately 17 of these individuals involved in these conspiracies.
The methamphetamine manufacturing conspiracy that these individuals admitted to being a part of involved a network of overlapping associates that relied on coordinated efforts to procure methamphetamine precursors which they then used to make methamphetamine using a "shake and bake" manufacturing method. The drugs the conspirators were responsible for making were being distributed both for profit and for use by people within the conspiracy.
The indictment and subsequent conviction of these individuals was the result of an ongoing and collaborative investigation conducted by the Unicoi County Sheriff’s Department, Washington County Sheriff’s Department, Erwin Police Department, First Judicial District Drug Task Force, Tennessee Bureau of Investigation, and Drug Enforcement Administration. Assistant U.S. Attorney J. Christian Lampe represented the United States.
U.S. Attorney Bill Killian commended the hard work and joint cooperation of the law enforcement agencies who worked the investigation. “I appreciate the efforts of all the law enforcement agencies coming together to rid this community of a large number of methamphetamine makers and users.”
Washington County Sheriff Ed Graybeal said that he appreciates everyone’s great effort in combating the methamphetamine problem that targets our area. “Law enforcement working together with the caring people of the community…we are all making a difference!” said Graybeal.
Sheriff Mike Hensley said, “This cooperative effort has dramatically reduced the overall drug problem in Unicoi County. We hope that these harsh sentences will serve as a deterrent for other individuals that are involved with manufacturing methamphetamine. Everyone involved in this investigation has done an extraordinary job to bring this to pass.”
Erwin Residents Sentenced for Conspiracy to Manufacture MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – Four individuals involved in a conspiracy to manufacture methamphetamine were sentenced on Oct. 23, 2013, by the Honorable J. Ronnie Greer, U.S. District Judge. Tim Smith, 29, of Erwin, Tenn., was sentenced to serve 92 months in prison. Crystal Williams, 40, of Erwin, Tenn., was sentenced to serve 90 months in prison. Misty Potter, 36, of Erwin, Tenn., was sentenced to serve 66 months in prison. Doug Gaskins, 53, of Erwin, Tenn., was sentenced to serve 54 months in prison.
Each of these individuals pleaded guilty to a March 2013 federal indictment charging a total of 25 individuals with conspiracy to manufacture methamphetamine. Three additional separate but related conspiracies to manufacture methamphetamine cases from in and around the Erwin area were also recently prosecuted in U.S. District Court, resulting in the conviction of a total of 52 individuals. Sentencing is currently pending for approximately 17 of these individuals involved in these conspiracies.
The methamphetamine manufacturing conspiracy that these individuals admitted to being a part of involved a network of overlapping associates that relied on coordinated efforts to procure methamphetamine precursors which they then used to make methamphetamine using a "shake and bake" manufacturing method. The drugs the conspirators were responsible for making were being distributed both for profit and for use by people within the conspiracy.
The indictment and subsequent conviction of these individuals was the result of an ongoing and collaborative investigation conducted by the Unicoi County Sheriff’s Department, Washington County Sheriff’s Department, Erwin Police Department, First Judicial District Drug Task Force, Tennessee Bureau of Investigation, and Drug Enforcement Administration. Assistant U.S. Attorney J. Christian Lampe represented the United States.
U.S. Attorney Bill Killian commended the hard work and joint cooperation of the law enforcement agencies who worked the investigation. “I appreciate the efforts of all the law enforcement agencies coming together to rid this community of a large number of methamphetamine makers and users.”
Washington County Sheriff Ed Graybeal said that he appreciates everyone’s great effort in combating the methamphetamine problem that targets our area. “Law enforcement working together with the caring people of the community…we are all making a difference!” said Graybeal.
Sheriff Mike Hensley said, “This cooperative effort has dramatically reduced the overall drug problem in Unicoi County. We hope that these harsh sentences will serve as a deterrent for other individuals that are involved with manufacturing methamphetamine. Everyone involved in this investigation has done an extraordinary job to bring this to pass.”
Edna Cuts the Rope Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on October 24, 2013, before U.S. District Judge Sam E. Haddon, EDNA CUTS THE ROPE, a 34-year-old resident of Billings, was sentenced to a term of:
- ison: 76 months
- ecial Assessment: $100
- pervised Release: 5 years
CUTS THE ROPE was sentenced in connection with her guilty plea to possession with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
In October of 2010, the FBI Safe Streets Task Force (BSSSTF) received information about a large scale methamphetamine distribution organization operating in Yellowstone County.
In the spring of 2011, law enforcement began performing electronic surveillance on Carlos Menjivar, an individual living in Billings. Investigators discovered that Menjivar, Dawn Marie Menjivar, and Armando Hernandez-Vaca began supplying the larger methamphetamine organization in late 2010 with methamphetamine after the prior source of supply had a run in with law enforcement. During the investigation law enforcement learned that Armando Hernandez-Vaca delivered methamphetamine to Carlos Menjivar, his co-conspirator, Dawn Marie Menjivar, and several other individuals from approximately April 2011 to October 2011. Hernandez-Vaca regularly transported two to three pounds of methamphetamine per trip during his involvement in the conspiracy.
In approximately July of 2011, Carlos Menjivar was incarcerated on non-drug related charges. Dawn Marie Menjivar took over the distribution of methamphetamine and collection of money for the organization.
As the investigation developed, agents began purchasing methamphetamine from an individual in Billings. The individual introduced the undercover agents to his source of supply, CUTS THE ROPE. CUTS THE ROPE was known to investigators as a methamphetamine distributor who at one time received methamphetamine from Micah Waltenbaugh. Agents had also heard from individuals on the street, as well as informants, that Waltenbaugh was distributing methamphetamine, with his source of supply Carlos Menjivar. This same information was confirmed through jail house phone calls between the Menjivars. CUTS THE ROPE then began distributing methamphetamine directly to the individual in quantities ranging from "eight balls" to half-ounces at a time.
The individual in Billings was later signed up as an FBI Confidential Human Source (CHS), and continued to make methamphetamine purchases directly from CUTS THE ROPE. In all, the CHS purchased a total of 53.3 grams of methamphetamine from CUTS THE ROPE. CUTS THE ROPE also enlisted the CHS for rides to purchase plastic baggies, cutting agents, as well as to pay debts to her source of supply and to get more methamphetamine from her source.
In July of 2011, CUTS THE ROPE's source of supply for methamphetamine was identified as Armando Hernandez-Vaca. Agents watched CUTS THE ROPE meet with Hernandez-Vaca to obtain methamphetamine, which the agents then purchased from CUTS THE ROPE.
From July 2011, and continuing thereafter until late January 2012, CUTS THE ROPE possessed with the intent to distribute at least 500 grams of a substance containing a detectable amount of methamphetamine, including the 53.3 grams she sold directly to the CHS.
Carlos and Dawn Menjivar, Hernandez-Vaca, and Waltenbaugh pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that CUTS THE ROPE will likely serve all of the time imposed by the court. In the federal system, CUTS THE ROPE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Billings Big Sky Safe Streets Task Force.
Dupree Man Sentenced for Striking, Beating or Wounding and Simple AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Dupree, South Dakota, man has pled guilty to Assault by Striking, Beating or Wounding and Simple Assault and was sentenced on October 22, 2013, by U.S. Magistrate Judge Mark A. Moreno
Jeryn Big Eagle, age 37, was sentenced to one year probation on each count, home confinement for 60 days, and a $20 special assessment to the Federal Crime Victims Fund.
The conviction stems from an incident that occurred on July 29, 2011, when Big Eagle consumed several alcoholic beverages over the course of the evening and became upset after he heard reports pertaining to his sister and the victim. Later in the evening, Big Eagle saw the victim standing on a street in Cherry Creek, approached him, and an argument ensued. At some point during the argument, Big Eagle struck the victim in the head, chest and abdomen.
The investigation was conducted by the Cheyenne River Law Enforcement Services. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Drug Trafficking Organization Operating in the San Juan Seaport Indicted for Conspiracy to Import Controlled SubstancesRead the Press Release
SAN JUAN, Puerto Rico – On October 23, a federal grand jury indicted a group of longshoremen working at the seaport in San Juan, Puerto Rico, a co-owner of a company that provides freight transportation services and their associates, with conspiracy to import and conspiracy to possess with intent to distribute controlled substances, announced United States Attorney Rosa Emilia Rodríguez-Vélez.
The individuals charged conspired and coordinated the purchase of kilogram quantities of cocaine and heroin from sources in Colombia and Dominican Republic. The drugs were placed inside containerized cargo vessels that were scheduled to arrive in the seaport in San Juan, Puerto Rico. Once in Puerto Rico, longshoremen and other individuals working for private companies, providing services at the San Juan port, would use their employment credentials and privileges to gain access inside the containerized cargo vessels and secure areas inside the seaport to retrieve the controlled substances and deliver them to others waiting outside the seaport. Some of the drugs smuggled were distributed in Puerto Rico and some were further transported to the continental United States for eventual resale.
The defendants who work at the seaport in San Juan are: José E. Gonzàlez-Santiago, aka “Fanfa;” Jesús Negrón-Rossy, aka “Primo Tito;” Noralbert Martínez-López, aka “Norel;” Sergio Ferrer-Rivera, aka “Flaco;” José A. Ortiz-Soto, aka “Chelito;” and Nestor Prestamo-Torres aka “Mopa.” The other co-conspirators are: Rawel Encarnación-Cleto, aka “El Domi;” Carlos E. Acosta, aka “Carlitos;” José Israel Ruiz-Caceres, aka “El Viejo;” and Rodney Caceres-Valentin. The conspirators engaged in this scheme since late 2010.
“These arrests demonstrate the continued commitment of federal and local law enforcement agencies in the fight against drug,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The Organized Crime Drug Enforcement Task Force will continue maximizing all of its combined resources to investigate and prosecute those who disregard our laws and try to smuggle illegal contraband into our jurisdiction.”
The indictment is the result of a long term investigation led by special agents from Homeland Security Investigation (HSI) assigned to the Border Enforcement Security Task Force (BEST), a Department of Homeland Security (DHS) initiative to identify, disrupt, and dismantle criminal organizations that seek to exploit vulnerabilities along U.S. borders, in collaboration with the Puerto Rico Police Department (PRPD), Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Coast Guard (USCG), U.S. Customs and Border Protection (CBP) and the Puerto Rico Port Authorities.
The case is being prosecuted by Assistant United States Attorney Carlos R. Cardona from the Organized Crime Drug Enforcement Task Force (OCDETF) program. The defendants are facing a minimum of 10 years up to life in prison.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
District Man Sentenced to More Than Four Years in Prison for Stabbing Man at Southeast Washington Apartment Building-Defendant Was on Probation for A Drug Offense-Read the Press Release
WASHINGTON – David E. Harris, 32, of Washington, D.C., has been sentenced to a prison term of four years and two months for stabbing a man earlier this year at an apartment building in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Harris, also known as “Bam Bam,” was found guilty by a jury in August 2013 of charges of assault with a dangerous weapon, assault with significant bodily injury, carrying a dangerous weapon, and felony threats. The verdict followed a trial in the Superior Court of the District of Columbia. Harris was sentenced Oct. 22, 2013 by the Honorable Robert I. Richter. Upon completion of his prison term, Harris will be placed on three years of supervised release.
According to the government’s evidence, at about 8:30 p.m. on March 9, 2013, Harris approached the victim, who was entering an apartment building in the area of 16th and V Streets SE. Harris grabbed the victim by the shirt, brandished a knife, and stabbed him twice. The victim, who managed to flee, received more than 20 stitches for his stab wounds. Earlier in the day, Harris had unfairly accused the victim of stealing a drug stash he hid in the area and threatened to kill him. The victim notified police and returned to the area. Harris, who was on probation at the time for a drug conviction, was arrested four days after the stabbing.
In announcing the sentence, U.S. Attorney Machen praised those who investigated the case for the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Lynette Briggs, Lynda Randolph, Tony Griffith and Todd McClelland; Information Technology Specialists Claudia Gutierrez and Anisha Bhatia; former intern Taylor Jones, and David Foster, James Brennan, Michael Hailey, and M. Laverne Forrest, all of the Victim Witness Assistance Unit. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Philip Selden, who investigated and prosecuted the case.
13-366District Man Sentenced to 20 Years in Prison for Killing A Man by Setting Him on Fire-Attack Took Place in June 2013 in Southeast Washington-Read the Press Release
WASHINGTON – Shawn Lewis, 42 of Washington D.C., was sentenced today to 20 years in prison for killing a man in June 2013 by setting him on fire at an apartment building in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Lewis pled guilty in July 2013, in the Superior Court of the District of Columbia, to a charge of second-degree murder. He was sentenced by the Honorable Russell F. Canan. Upon completion of his prison term, Lewis will be placed on five years of supervised release.
According to the government’s evidence, at about 6:25 p.m. on June 28, 2013, Lewis returned to the apartment building where he was living in the 1600 block of 21st Place SE. He then went to the back porch of the building, holding a lit piece of newspaper and a container of ignitable liquid. Lewis threw the liquid on the victim, Douglas Farley, 38, who was on the back porch. He ignited the liquid with the lit newspaper, engulfing Mr. Farley in flames. Lewis was arrested on the scene at about 9:25 that evening.
Mr. Farley was taken to the Washington Hospital Center, where he died on July 3, 2013. A post-mortem examination determined that Mr. Farley died as a result of complications from thermal and inhalation injuries sustained by the flames.
In announcing the sentence, U.S. Attorney Machen praised the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Debra Joyner, Victim/Witness Advocate Jennifer Clark, and Intelligence Specialist Sharon Johnson. Finally, he recognized the efforts of Assistant U.S. Attorneys Philip Selden, Kathryn Rakoczy, and Jonathan Kravis, who investigated and prosecuted the case.
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