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22 October 2013
Duval County Man Indicted and Arrested on Hoax Bomb Charge Involving Jacksonville International AirportRead the Press Release
Jacksonville, Florida – Acting United States Attorney A. Lee Bentley, III announces the return by a grand jury of an indictment charging Zeljko Causevic (39, Jacksonville) with conveying false or misleading information. Causevic was arrested on a federal warrant while in state custody and faces a maximum penalty of five years in federal prison.
According to the indictment, Causevic entered Jacksonville International Airport on October 1, 2013, and stated that he was in possession of a bomb.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the FBI Joint Terrorism Task Force, the Jacksonville Aviation Authority, the Jacksonville Sheriff’s Office, and the Transportation Security Administration. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Duryea Man Charged with Drug Trafficking OffenseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a criminal Information was filed on October 10, charging Gerald Timek, age 28, of Duryea, Pennsylvania, with distribution of cocaine.
According to United States Attorney Peter J. Smith the charges are the result of an investigation conducted by the Federal Bureau of Investigation; the Pennsylvania Attorney General’s Office; and the Luzerne County District Attorney’s Office. Prosecution is assigned to Assistant United States Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is twenty years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Dublin Doctor Sentenced on Drug Diversion ChargesRead the Press Release
ROANOKE, VIRGINIA -- A former medical doctor from Dublin, Va., who in February was convicted on 172 criminal counts of diverting pain medication, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke.
Linda Sue Cheek, 64, of Dublin, Va., was indicted in May 2012 and charged with 86 counts of distributing scheduled controlled substances without holding a valid certificate of DEA Registration, 81 counts of using a DEA registration number issued to another person, five counts of using a DEA registration number which has been revoked or suspended and one count of maintaining a drug-involved premise.
Following an eight-day trial in February of this year in the United States District Court in Roanoke, a jury convicted the former doctor on 172 of the 173 counts leveled against her. Today in District Court, Cheek was sentenced to 33 months of federal incarceration. She was also ordered to pay a special assessment of $17,125.
“Prescription drug abuse is an epidemic that is destroying lives and ruining too many Virginia communities,” United States Attorney Timothy J. Heaphy said today. “Despite losing her license to prescribe medicine, Dr. Cheek illegally fed the addiction of hundreds of patients while collecting their money. The criminal prosecution of unethical medical professionals like Dr. Cheek is a central part of our comprehensive strategy to address the prescription drug crisis. We must also continue to reduce demand and provide effective treatment if we are to have an impact on this public health emergency.”
Evidence presented at trial by Assistant United States Attorney Jennie L.M. Waering, determined that Cheek wrote prescriptions for controlled substances on her revoked DEA number and wrote prescriptions on a DEA number that belonged to another person.
The investigation of the case was conducted by the Drug Enforcement Administration, the Department of Health and Human Services and the Virginia State Police. Assistant United States Attorney Jennie L.M. Waering and Virginia Assistant Attorney General and Special Assistant United States Attorney Vaso T. Doubles are prosecuting the case for the United States.
Drug Take-Back Day Scheduled for Saturday, October 26Read the Press Release
United States Attorney Brendan V. Johnson announced that the Drug Enforcement Administration (DEA) has scheduled a National Prescription Drug Take-Back Day for Saturday, October 26, 2013, from 10:00 a.m. to 2:00 p.m.
Spearheaded in 2010, the purpose of the nationwide initiative is to allow people to safely dispose of their expired, unused, and unwanted prescription pills at specified drop off sites. The proper disposal of these drugs can help prevent abuse and theft by eliminating the product from the household.
This service is free of charge, anonymous, and there are no questions asked. October 26 will be the seventh time in three years that the DEA and partners have offered this opportunity to the public.
During the sixth annual Take-Back Day last April, South Dakotans turned in 1,146 pounds of prescription drugs.
For the October 26 event, there are currently 22 participants hosting collection sites in South Dakota, with five of those sites available on the Cheyenne River Indian Reservation. The Cheyenne River Sioux Tribe Law Enforcement has coordinated with the U.S. Attorney’s office and the DEA to provide the following sites for medication disposal:Eagle Butte: Cultural Center
Whitehorse: Community Building
Cherry Creek: Community Clinic
Red Scaffold: Community Clinic
LaPlante: Tiospaye Topa School“I encourage anyone with expired or unused prescription drugs to take advantage of this opportunity to dispose of them safely and properly,” said U.S. Attorney Johnson. "I especially applaud the law enforcement at Cheyenne River for their efforts in securing five locations on the reservation as drop-off sites. I’m hopeful that residents of these tribal communities will join in this effort to help ensure these drugs don’t harm people or the environment.” Assistant U.S. Attorney Kathryn Rich will be on hand in Eagle Butte for the event.
Take-Back Day is a cooperative effort between the DEA; the U.S. Attorney’s Office; national, state, local, and tribal law enforcement officials; and community coalition groups who work together to support and provide this community service.
For a listing of collection sites, or for more information on the Take-Back initiative, visit the DEA website: www.DEA.gov
Douglas Vance Crooked Arm and Kenneth G. Shane 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 22, 2013, before U.S. District Judge Donald W. Molloy, DOUGLAS VANCE CROOKED ARM, age 36, and KENNETH G. SHANE, age 45, residents of Crow Agency, were sentenced.
CROOKED ARM was sentenced to a term of:
- obation: 4 years, with 6 months electronic monitoring
- ecial Assessment: $200
- stitution: $3,000
SHANE was sentenced to a term of:
- obation: 1 year
- ecial Assessment: $200
- stitution: $3,000
They were sentenced in connection with their guilty pleas to conspiracy to traffic in eagles and migratory birds, and unlawfully trafficking in migratory birds.
In an Offer of Proof filed by Assistant U.S. Attorney Mark S. Smith, the government stated it would have proved at trial the following:
Operation Hanging Rock" was a U.S. Fish & Wildlife Service investigation into the unlawful sale of migratory bird feathers. As part of that operation, on August 17, 2008, FWS Special Agents (SAs) went to the Crow Fair in Crow Agency. While there undercover, the agents encountered SHANE and his brother-in-law, CROOKED ARM. SHANE gave the agents his contact information and invited them to visit his house.
On November 13, 2008, the agents met with SHANE and CROOKED ARM at SHANE's father's house, south of Garryowen. An agent noticed two golden eagles flying around the area, and said to the other agent, "There's your tail, Liz." SHANE asked "Are you looking for tails?" The agent told SHANE she needed a fan for her dress. SHANE said "My brother-in-law (CROOKED ARM) has got some made, beaded and everything. He likes to hunt and everything." SHANE said "My brother-in-law got some white-tail buck and a muley buck and he is going to leave the carcasses out there." SHANE said CROOKED ARM was "bringing his carcasses out because that's what we're hunting right now," indicating they would put out the carcasses as bait to attract eagles. SHANE also said, "We put the carcass out here and we drive up and ... the black and whites haven't been so good lately, we are waiting for some more snow."
SHANE called CROOKED ARM's cell phone, asked him whether he had any fans for sale. SHANE told CROOKED ARM that the agents might be interested in purchasing them. SHANE then generally pointed out areas where he and CROOKED ARM placed deer and elk carcasses for hunting hawks and eagles. CROOKED ARM arrived at the residence and showed the agents parts of deer carcasses lying in the back of his truck. The agents asked CROOKED ARM if he needed help putting carcasses out, but CROOKED ARM said he could do it himself. One of the agents asked CROOKED ARM how he could get nice deer like those. CROOKED ARM responded, "Poach." The group noticed a golden eagle flying nearby, and SHANE told CROOKED ARM to drop a carcass in that area.
CROOKED ARM then removed one immature golden eagle fan and one magpie fan from his truck cab and showed them to the agents. CROOKED ARM then left to put out the deer carcass. SHANE told the agents he and CROOKED ARM wanted $1,500 for the golden eagle fan and $800 for the magpie fan. SHANE told one of the agents that he and CROOKED ARM had obtained the golden eagle used to make the fan the previous Christmas. The agent paid SHANE $1,500 cash and received the golden eagle fan from him. The agents also placed an order for a magpie fan. One of the agents later saw SHANE give CROOKED ARM a portion of the $1,500 they had paid for the golden eagle fan. SHANE told the agents that CROOKED ARM needed this money to make a payment on his pickup truck. SHANE said he and CROOKED ARM had a good thing going, working hard all winter to kill and trap eagles. SHANE told the agents that CROOKED ARM made regalia to sell while he stayed home taking care of his kids, and this helped the family get by during the winter.
On January 29, 2009, an agent called SHANE, and SHANE said he and CROOKED ARM were still putting out deer and elk carcasses to trap and kill eagles and hawks. The agent asked SHANE for a nice tail, and SHANE said CROOKED ARM had several so they would save one for him.
On February 11, 2009, an agent met with SHANE and they drove to CROOKED ARM's residence, in Hardin. The agent told CROOKED ARM that the other agent wanted to buy another eagle fan and a winter hawk fan. CROOKED ARM said he had plenty of tails and had sold four golden eagle fans and several hawk fans the previous week to some people from New Mexico. CROOKED ARM produced two eagle feathers from an adjoining room, and told the agent that several of his tails were similar to these feathers. CROOKED ARM agreed to a $500 deposit, and told the agent to e-mail him the specifics for the fans. CROOKED ARM gave the agent his phone numbers. The agent paid CROOKED ARM the $500 deposit.
On March 8, 2009, CROOKED ARM sent one of the agents an e-mail containing photos of a bald eagle fan and a winter hawk (rough-legged) tail he intended to use for her hawk fan. CROOKED ARM wrote that he only had two weeks to finish the agents's hawk fan before a powwow in Denver. He asked the agent if the hawk in the photo was acceptable. Later that day, in a second e-mail to the agent, CROOKED ARM wrote that the bald eagle fan from the photo took extra time because he had to send it to a friend to clean off the blood, and there was a lot of blood.
The next day, March 9, 2009, CROOKED ARM called the agent and asked what colors she wanted on her fan. On March 10, 2009, CROOKED ARM called the other agent to tell him that his $500 deposit would be payment for the "winter hawk" fan, but the bald eagle tail fan from the photo would cost $1,000 because he had to pull a few strings to get it in time for the Denver powwow.
On the morning of March 11, 2009, a FWS Special Agent served a search warrant on CROOKED ARM"s residence in Hardin. They seized, among other things, a hand-written note containing the undercover agent"s order for a winter hawk feather fan, and one bald eagle feather fan. After agents read him his rights, CROOKED ARM signed an Advice of Rights Form, and agreed to cooperate. CROOKED ARM retrieved the undercover agent's order from the top of his refrigerator and admitted he knew the two undercover agents in connection with the note.
That same morning, another FWS Special Agent, accompanied by six other special agents, served a search warrant on SHANE's father's home south of Garryowen. SHANE arrived a few minutes after the agents. The agents advised SHANE of the search warrant and SHANE agreed to speak with them briefly. A Special Agent told SHANE he would not be arrested and explained the undercover agent's true identity. SHANE admitted that he knew it was illegal to sell hawk and eagle parts.
SHANE admitted that CROOKED ARM sold a golden eagle peyote fan to the undercover agents, but claimed he never counted the money they paid him, having given the entire amount to CROOKED ARM. SHANE also told the agents he saw one of the undercover agents show CROOKED ARM a sketch and discuss purchasing a hawk fan with beadwork to match her skirt. SHANE said he had a permitted eagle from the U.S. Fish and Wildlife Service, which he had used to make a bustle for his dance costume, stored in the basement. The agents photographed this bustle, but did not seize it. SHANE said that CROOKED ARM had called him the day before to ask for one of the undercover agent's phone number to complete the sale of a bronze hawk fan and bald eagle tail fan.
The investigation was conducted by the U.S. Fish and Wildlife Service.
District Woman Found Guilty of Charges in Shooting at Northwest Washington Restaurant-Defendant Shot Victim Once in the Chest-Read the Press Release
WASHINGTON – Lashawn Carson, 28, of Washington, D.C., was found guilty on Oct. 11, 2013 of aggravated assault while armed and related firearms offenses stemming from a shooting at a Northwest Washington restaurant, U.S. Attorney Ronald C. Machen Jr. announced.
The jury’s verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Michael Ryan scheduled sentencing for Dec. 9, 2013.
According to the government’s evidence, at 5:30 a.m. on March 11, 2012, two groups of friends were eating at the IHOP restaurant in the 3100 block of 14th Street NW. The victim’s group of friends was seated at one table and Carson’s group was at another.
As the victim was attempting to walk to the cash register to pay his bill, Carson and a male friend inadvertently stood directly in his way. The victim attempted to squeeze by and accidently bumped into Carson. Words were exchanged, and the defendant’s male friend used a homophobic slur. A fight ensued, and an off-duty police detective, who was seated nearby, jumped up to break it up. At that point, according to the government’s evidence, Carson walked over, adjusted her hair, pulled out a firearm and shot the victim once in the chest.
In announcing the verdict, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation to those who handled the case for the U.S. Attorney’s Office, including Assistant U.S. Attorneys Andrew Finkelman and Lauren Dickie, who investigated the case, and Assistant U.S. Attorney Nicholas Cannon, who investigated the case and prosecuted it at trial.
13-360District Man Pleads Guilty to Tax Fraud Related to Embezzlement of Indonesian Airline- Admits Failure to Report over $448,000 in Income -Read the Press Release
WASHINGTON - Jon C. Cooper, 64, of Washington, D.C., pled guilty on Oct. 9, 2013 in the U.S. District Court for the District of Columbia to one count of tax evasion related to his failure to report over $448,000 in income he received in 2006.
The guilty plea, which took place on Oct. 9, 2013, was announced today by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
As part of his guilty plea, Cooper admitted that, in December 2006, he and Alan Messner induced an Indonesian airline company to pay them a $1 million security deposit to lease two aircraft using various false and fraudulent pretenses, representations, and promises – including forged and fraudulent documents. Cooper admitted that, after he received the $1 million security deposit, he transferred $284,500 to Messner in December 2006 and January 2007. Cooper spent the balance of the security deposit for his own personal benefit. Cooper and Messner did not provide the promised aircraft and did not return any funds to the Indonesian airline company.
Cooper admitted that he did not report at least $448,727 of those proceeds on his federal income tax return for 2006. Instead, by under-reporting his income, Cooper claimed a tax refund that year. As a result of Cooper’s tax evasion, Cooper caused a tax loss of at least $133,464 to the United States.
Cooper is to be sentenced on Jan. 23, 2014, before the Honorable Amy Berman Jackson. He faces a maximum sentence of five years in prison and a $250,000 fine. In addition, as part of his guilty plea, Cooper agreed to pay $133,464 owed to the United States. Cooper further agreed to make restitution of $1 million to the victimized Indonesian airline company.
In a related case, Messner, 41, of Rolling Meadows, Ill., pled guilty in August 2013 to one count of tax evasion, admitting that he failed to report any portion of the $284,500 he received on his federal income tax returns. Messner is to be sentenced on Dec. 13, 2013. Messner faces a maximum sentence of five years in prison and a $250,000 fine. As part of his guilty plea, Messner agreed to pay the full $62,231 which he owed to the United States.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director Parlave, and Special Agent in Charge Kelly expressed appreciation for the work done by those who investigated the case from the FBI’s Washington Field Office and the Washington Field Office of the IRS-CI. They also acknowledged the efforts of Trial Attorney Jessica Moran, of the Department of Justice’s Tax Division. Finally, they commended the work of those who handled the case from the U.S. Attorney’s Office, including Paralegal Specialist Krishawn Graham, and Assistant U.S. Attorneys Richard DiZinno and Jonathan Hooks, who investigated and indicted the case.
13-359Diebold Incorporated Resolves Foreign Corrupt Practices Act Investigation and Agrees to Pay $25.2 Million Criminal PenaltyRead the Press Release
Diebold Inc. (Diebold), the Ohio-based provider of integrated self-service delivery and security systems, including automated teller machines (ATMs), has agreed to pay a $25.2 million penalty to resolve allegations that it violated the Foreign Corrupt Practices Act (FCPA) by bribing government officials in China and Indonesia and falsifying records in Russia in order to obtain and retain contracts to provide ATMs to state-owned and private banks in those countries.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio made the announcement.
The department today filed in U.S. District Court for the Northern District of Ohio a criminal information and a deferred prosecution agreement. The two-count information charges Diebold with conspiring to violate the FCPA’s anti-bribery and books and records provisions and violating the FCPA’s books and records provisions.
“In China, Indonesia and Russia, Diebold chose to pay bribes for business and falsify documents to cover its tracks,” said Acting Assistant Attorney General Raman. “Through its corrupt business practices, Diebold undermined the sense of fair play that is critical for the rule of law to prevail. Today’s action – which holds Diebold accountable for its criminal conduct, while also recognizing its cooperation and voluntary disclosure to the government of its conduct – underscores that fighting global corruption is and will remain a mainstay of the Criminal Division’s mission.”
“Companies that pay bribes to public officials, whether those officials are in Cleveland, in Ohio or overseas, violate the law,” said U.S. Attorney Dettelbach. “Corporate earnings cannot be placed above the rule of law, and today’s penalties – nearly $50 million in all – send the message again, loud and clear, that such conduct is unacceptable. We hope that Diebold will use this opportunity, including the internal controls and compliance monitor required by today’s agreement, to turn the page to a newer and more ethical corporate culture.”
According to court documents, Diebold paid bribes and falsified documents in connection with the sale of ATMs to bank customers in China, Indonesia, and Russia. With respect to China and Indonesia, the court documents allege that from 2005 to 2010, in order to secure and retain business with bank customers, including state-owned and -controlled banks, Diebold repeatedly provided things of value, including payments, gifts, and non-business travel for employees of the banks, totaling approximately $1.75 million. Diebold attempted to disguise the payments and benefits through various means, including by making payments through third parties designated by the banks and by inaccurately recording leisure trips for bank employees as “training.” The court documents also allege that from 2005 to 2009, Diebold created and entered into false contracts with a distributor in Russia for services that the distributor was not performing. The distributor, in turn, used the money that Diebold paid to it, in part, to pay bribes to employees of Diebold’s privately-owned bank customers in Russia in order to obtain and retain ATM-related contracts with those customers.
In addition to the monetary penalty, Diebold agreed to implement rigorous internal controls, cooperate fully with the department, and retain a compliance monitor for at least 18 months. The department agreed to defer prosecution for three years and, if Diebold abides by the terms of the deferred prosecution agreement, the department will dismiss the criminal information when the agreement’s term expires. The agreement acknowledges Diebold’s voluntary disclosure and extensive internal investigation and cooperation.
In a related matter, Diebold reached a settlement with the SEC and agreed to pay approximately $22.97 million in disgorgement and prejudgment interest. The SEC settlement was filed today.
The case is being prosecuted by Trial Attorney Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Justin J. Roberts of the Northern District of Ohio. The case was investigated by the FBI’s Cleveland Field Office. The department acknowledges and expresses its appreciation for the assistance provided by the SEC’s Division of Enforcement.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Diebold Inc. to Pay $25 Million Criminal Penalty to Resolve Foreign Corrupt Practices Act InvestigationRead the Press Release
Diebold Inc., the North Canton-based provider of integrated self-service delivery and security systems, including automated teller machines (ATMs), has agreed to pay a $25.2 million penalty to resolve allegations that it violated the Foreign Corrupt Practices Act (FCPA) by bribing government officials in China and Indonesia and falsifying records in Russia in order to obtain and retain contracts to provide ATMs to state-owned and private banks in those countries.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Steven M. Dettelbach of the Northern District of Ohio made the announcement.
The department today filed in U.S. District Court for the Northern District of Ohio a criminal information and a deferred prosecution agreement. The two-count information charges Diebold with conspiring to violate the FCPA’s anti-bribery and books and records provisions and violating the FCPA’s books and records provisions.
“In China, Indonesia and Russia, Diebold chose to pay bribes for business and falsify documents to cover its tracks,” said Acting Assistant Attorney General Raman. “Through its corrupt business practices, Diebold undermined the sense of fair play that is critical for the rule of law to prevail. Today’s action – which holds Diebold accountable for its criminal conduct, while also recognizing its cooperation and voluntary disclosure to the government of its conduct – underscores that fighting global corruption is and will remain a mainstay of the Criminal Division’s mission.”
“Companies that pay bribes to public officials, whether those officials are in Cleveland, in Ohio or overseas, violate the law,” said U.S. Attorney Dettelbach. “Corporate earnings cannot be placed above the rule of law, and today’s penalties – nearly $50 million in all – send the message again, loud and clear, that such conduct is unacceptable. We hope that Diebold will use this opportunity, including the internal controls and compliance monitor required by today’s agreement, to turn the page to a newer and more ethical corporate culture.”
According to court documents, Diebold paid bribes and falsified documents in connection with the sale of ATMs to bank customers in China, Indonesia, and Russia. With respect to China and Indonesia, the court documents allege that from 2005 to 2010, in order to secure and retain business with bank customers, including state-owned and -controlled banks, Diebold repeatedly provided things of value, including payments, gifts, and non-business travel for employees of the banks, totaling approximately $1.75 million. Diebold attempted to disguise the payments and benefits through various means, including by making payments through third parties designated by the banks and by inaccurately recording leisure trips for bank employees as “training.” The court documents also allege that from 2005 to 2009, Diebold created and entered into false contracts with a distributor in Russia for services that the distributor was not performing. The distributor, in turn, used the money that Diebold paid to it, in part, to pay bribes to employees of Diebold’s privately-owned bank customers in Russia in order to obtain and retain ATM-related contracts with those customers.
In addition to the monetary penalty, Diebold agreed to implement rigorous internal controls, cooperate fully with the department, and retain a compliance monitor for at least 18 months. The department agreed to defer prosecution for three years and, if Diebold abides by the terms of the deferred prosecution agreement, the department will dismiss the criminal information when the agreement’s term expires. The agreement acknowledges Diebold’s voluntary disclosure and extensive internal investigation and cooperation.
In a related matter, Diebold reached a settlement with the SEC and agreed to pay approximately $22.97 million in disgorgement and prejudgment interest. The SEC settlement was filed today.
The case is being prosecuted by Trial Attorney Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Justin J. Roberts of the Northern District of Ohio. The case was investigated by the FBI’s Cleveland Field Office. The department acknowledges and expresses its appreciation for the assistance provided by the SEC’s Division of Enforcement.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Defendant Pleads Guilty in Manhattan Federal Court to Participating in Racketeering Conspiracy with Russian-American Organized Crime Enterprise Operating International SportsbookRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that STAN GREENBERG pled guilty today in Manhattan federal court to participating in a racketeering conspiracy in connection with his role as a member of a Russian-American organized crime enterprise. GREENBERG was charged in April 2013 along with 33 other alleged members and associates of two Russian-American organized crime enterprises – the Taiwanchik-Trincher Organization and the Nahmad-Trincher Organization – in an indictment which included racketeering, money laundering, extortion, and various gambling offenses. He pled guilty before U.S. District Judge Jesse M. Furman.
Manhattan U.S. Attorney Preet Bharara said: “With his guilty plea today, Stan Greenberg is now the latest member of this Russian-American organized crime ring to be convicted, but we expect he will not be the last. We remain committed to pursuing and prosecuting those involved in this international enterprise.”
According to the Indictment, other documents filed in Manhattan federal court and statements made at various proceedings in this case, including today’s guilty plea:
The Taiwanchik-Trincher Organization is a nationwide criminal enterprise with strong ties to Russia and Ukraine. The leadership of the organization ran an international sportsbook that catered primarily to Russian oligarchs living in Russia and Ukraine and throughout the world. The Taiwanchik-Trincher Organization laundered tens of millions of dollars in proceeds from the gambling operation from Russia and the Ukraine through shell companies and bank accounts in Cyprus, and from Cyprus into the United States. Once the money arrived in the United States, it was either laundered through additional shell companies or invested in seemingly legitimate investments, such as hedge funds or real estate. GREENBERG was a U.S.-based participant in the enterprise. In this capacity, he assisted the Taiwanchik-Trincher Organization in laundering the proceeds of their international sportsbook into various investment vehicles, including real estate purchases and hedge funds, in the United States.
GREENBERG, 48, of New York, NY, faces a maximum of 20 years in prison and three years of supervised release. As part of his plea agreement, GREENBERG agreed to forfeit the proceeds from his racketeering activity. He is scheduled to be sentenced by Judge Furman on February 27, 2014 at 3:00 p.m.
GREENBERG is the 12th defendant in this case to plead guilty. The following defendants previously pled guilty and await sentencing:
- Bryan Zuriff pled guilty to gambling charges on July 26, 2013;
- William Barbalat pled guilty to gambling charges on August 14, 2013;
- Kirill Rapoport pled guilty to gambling charges on August 16, 2013;
- Edwin Ting and Justin Smith pled guilty to gambling charges on September 4, 2013;
- Dmitry Druzhinsky and David Aaron pled guilty to gambling charges on October 4, 2013;
- Alexander Zaverukha pled guilty to gambling charges on October 10, 2013;
- Nicholas Hirsch pled guilty to conspiring to commit wire fraud on October 16, 2013;
- Anatoly Shteyngrab pled guilty to conspiring to commit money laundering on October 17, 2013; and
- Yugeshwar Rajkumar pled guilty to gambling charges on October 18, 2013.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, New York City Police Department, and Internal Revenue Service.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Harris M. Fischman, Joshua A. Naftalis, Peter Skinner, and Kristy J. Greenberg of the Organized Crime Unit are in charge of the prosecution. Assistant U.S. Attorneys Alexander Wilson and Christine Magdo of the Office’s Asset Forfeiture Unit are responsible for the forfeiture aspects of the case.
U.S. v. Alimzhan Tokhtakhounov, et al. Indictment
Couple Charged with EmployingRead the Press Release
Undocumented Workers At Wichita Chinese Restaurant
WICHITA, KAN. – The operators of a west Wichita Chinese restaurant have been arrested in connection with an indictment alleging that they employed undocumented workers, U. S. Attorney Barry Grissom announced Tuesday.
The operators, Yong “Tony” Lin, 33, and his wife, Zhuo Mei “Mandy” Weng, 29, both of Wichita, were arrested Tuesday by agents of the U.S. Department of Homeland Security (DHS) on warrants issued in connection with a federal indictment. The indictment charges conspiracy and harboring of aliens unlawfully in the United States, Grissom said.
“The U.S. Attorney’s office is aggressively pursuing employers who knowingly hire undocumented and falsely-documented workers,” Grissom said Tuesday. “When a business engages in this practice, it not only encourages illegal immigration, it also gives the employer an unfair advantage in the marketplace. We have several more ongoing investigations along these lines.”
Agents of Homeland Security Investigations (HSI), in cooperation with the Wichita Police Department, also executed search warrants at three west Wichita apartments and the restaurant, World Buffet Grill, 2243 N. Ridge Rd., Grissom said. Lin and Weng were booked into the Sedgwick County jail and are scheduled to make an initial court appearance at 1:30 p.m. Wednesday before U.S. Magistrate Judge Kenneth Gale.
The indictment, which was sealed after its filing on Sept. 11, alleges two counts of conspiracy and six counts of harboring, in addition to seeking criminal forfeiture of assets associated with the alleged crimes. If convicted, the defendants face a maximum of five years in prison on each of the eight counts. As in any criminal case, the defendants are presumed innocent until and unless proven guilty.
The indictment alleges that defendants Lin and Weng paid employees in cash, failed to withhold for taxes and Social Security, failed to maintain unemployment and workers compensation insurance, and failed to complete and maintain DHS Employment Eligibility Authorization (I-9) forms.
The case was investigated by HSI with the assistance of the Wichita Police Department, the Exploited and Missing Children’s Unit, and the Sedgwick County District Attorney’s office. The prosecutors are Brent Anderson and Jason Hart, both assistant United States attorneys.Convicted Santa Cruz Sex Offender Sentenced to Ten Years in Prison for Possessing Child PornographyRead the Press Release
SAN JOSE, CA – Steven Hibbett was sentenced yesterday afternoon to ten years in prison for possession of child pornography, United States Attorney Melinda Haag announced.
On July 29, 2013 Hibbett pleaded guilty to an Information alleging possession of child pornography in violation of 18 U.S.C. § 2252(a)(4)(B). In pleading guilty, Hibbett, 59, of Santa Cruz, admitted that he downloaded child pornography from the Internet onto a laptop computer that law enforcement seized from a Santa Cruz storage locker. Hibbett also admitted that he knowingly possessed over 600 images of child pornography, including images of prepubescent minors and images portraying sadistic or masochistic conduct. Hibbett also admitted that he possessed these images of child pornography while on state probation for a prior 2009 California felony conviction for possessing child pornography.
The Honorable Edward J. Davila, U.S. District Court Judge, handled down the ten year sentence. Judge Davila also sentenced the defendant to a five-year period of supervised release and ordered him to register as a sex offender and to participate in a sex offender treatment program. Hibbett has been in federal custody since was originally charged by complaint and made his initial appearance in federal court on April 18, 2013.
Assistant U.S. Attorney Joseph Fazioli prosecuted the case with the assistance of Laurie Worthen. The prosecution is a result of an investigation by the Federal Bureau of Investigation and the Santa Cruz Police Department.
Convenience Store Robber ChargedRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced the filing of a Criminal Information in U.S. District Court in Scranton on October 16, charging Daniel Ortiz, age 28, of Watertown, New York, with the four robberies of convenience stores in April and May 2011.
According to United States Attorney Peter J. Smith, Ortiz allegedly robbed the Hilltop Sunoco / Extra Mart located at 238 State Route 6, Milford, Pennsylvania on April 6, 2011; the Turkey Hill Minit Market, 912 Pennsylvania Avenue, Matamoras, Pennsylvania, on April 11, 2011; the Hilltop Sunoco / Extra Mart located at 238 State Route 6, Milford, Pennsylvania on April 17, 2011; and the Turkey Hill Minit Market, 912 Pennsylvania Avenue, Matamoras, Pennsylvania, on May 5, 2011. In doing so, Ortiz brandished weapons to instill fear to facilitate the robberies.
The case was investigated by the Federal Bureau of Investigation, the Eastern Pike Regional Police Department, and the Pennsylvania State Police. Prosecution is assigned to Assistant United States Attorney John Gurganus.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 80 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Co-Owner of Altoona Spa Transported Person for ProstitutionRead the Press Release
JOHNSTOWN, Pa. - A resident of Suwanee, GA, pleaded guilty in federal court to a charge of transportation for illegal sexual activity, United States Attorney David J. Hickton announced today.
Yon Park, 60, of pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Feb. 14, 2011, Park, while the owner of The SunSet Health Spa, located on Pleasant Valley Boulevard, Altoona, PA, caused an individual to be transported in interstate or foreign commerce, with the intent that such individual engage in prostitution, or in any sexual activity for which any person can be charged with a criminal offense.
Judge Gibson scheduled sentencing for February 24, 2014, at 10 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation, and the Pennsylvania State Police conducted the investigation that led to the prosecution of Park.
Citizen of Cameroon Indicted for Hindering RemovalRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, announced that a 44- year-old native and citizen of Cameroon was charged with hindering removal from the United States.
According to United States Attorney Peter J. Smith, Patrice Talbot, age 44, a native and citizen of Cameroon, in the United States illegally was charged in a one-count indictment returned on October 9 by a federal grand jury in Harrisburg.
The indictment alleges that Talbot, an alien who was under a final order of removal from the United States, did connive, conspire, and take action that was designed and intended to prevent and hamper his departure from the United States.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement and is being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is four years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Central Kentucky Glass Company and Its Former President Charged with Fraud in Connection with the Installation of Glass and Windows at Ft. Knox High SchoolRead the Press Release
– Indictment includes wire fraud, mail fraud and major fraud against the United States
LOUISVILLE, Ky. – Central Kentucky Glass Company, headquartered in Lexington, Kentucky, was indicted by a federal grand jury meeting in Louisville, Kentucky on October 16, 2013, on charges of wire fraud, mail fraud and major fraud against the United States in connection with a multi-million dollar contract at Fort Knox High School, announced David J. Hale, United States Attorney for the Western District of Kentucky. The former president of Central Kentucky Glass Company, Dennis Martin of Nicholasville, Kentucky, was charged separately, on October 21, 2013, in a federal Information.
Central Kentucky Glass Company was a subcontractor hired by the prime contractor, Barton Malow Company, as part of a multi-million dollar Army Corps of Engineers project which included the installation of glass and windows at Fort Knox High School, located in Hardin County, Kentucky. Central Kentucky Glass Company was required to provide certifications that its glass and windows were tested and met contract requirements, including anti-terrorism standards. According to the three count indictment, on October 22, 2008, Martin, then president of Central Kentucky Glass Company, allegedly forged two certifications from testing companies that falsely reflected that Central Kentucky Glass Company’s glass and windows had been tested and met contract requirements, including anti-terrorism standards. Further, the indictment charges that on March 16, 2009, Dennis Martin forged a certification from another company and provided the forged certification to the Barton Malow Company. Subsequent tests revealed that the glass and windows Central Kentucky Glass Company installed at Fort Knox High School failed to meet anti-terrorism standards.
Martin is charged separately with a single count of wire fraud for allegedly forging the certifications from two testing companies, then faxing the forged documents to Barton Malow Company in Ohio.
If convicted, the company faces a maximum fine of $6,000,000, and a three year period of supervised release. Martin faces no more than 20 years in prison, a fine of $250,000 and a three year period of supervised release.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Department of Defense Office of Inspector General.
The indictment of a company by a Grand Jury is an accusation only and that company is presumed innocent until and unless proven guilty.
Cement Contractor Sentenced to Incarceration in Tax CaseRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announces that Jeffrey Justison, age 44, of Elkton, Maryland, was sentenced today by United States District Court Judge Richard G. Andrews to six months incarceration, followed by six months house arrest, for failure to collect, and pay over to the IRS, federal income taxes from his employees.
According to statements made at the sentencing hearing and documents filed in court, Jeffrey Justison owns Double J Concrete, Inc., which he operates from his Elkton home. From June 2007 through December 2010, Justison performed concrete jobs in Delaware and surrounding states, maintaining approximately 20 workers. Justison paid his employees in cash, failing to collect from them, and to pay over to the IRS, Federal Income Tax and Federal Insurance Contribution Act (FICA) taxes. He further failed to pay to the IRS his matching employer’s portion of FICA taxes, resulting in a total of $184,829 in unpaid taxes.
Following the sentencing, Charles M. Oberly, III, United States Attorney for the District of Delaware, stated, “The criminal tax laws are designed to protect the public interest in preserving the integrity of our nation’s tax system. Today’s sentence should serve as a deterrent to would-be violators.”
"IRS Criminal Investigation realizes the detrimental consequences of employment tax evasion. It results in the loss of tax revenue to the United States government and the loss of future social security or Medicare benefits for the employees," stated Akeia Conner IRS Special Agent in Charge. "Today's sentencing should serve as a deterrent to employers that take lightly their responsibility to collect and pay over employment taxes."
This case was investigated by the Internal Revenue Service - Criminal Investigation Division and prosecuted by Assistant United States Attorney Edmond Falgowski.
Carbon County Man Pleads Guilty to Federal Firearms ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Carbon County man pleaded guilty on October 9, before Senior United States District Judge Edwin M. Kosik, to the charge of being an unlawful user of controlled substances in possession of firearms.
According to United States Attorney Peter J. Smith, Jordan Bachert, age 29, of Lansford, Carbon County, admitted to being an unlawful user of controlled substances in 2011 and 2012, a time period in which he purchased and possessed several firearms in Carbon County.
The case resulted from an investigation concerning drug and firearms trafficking in Carbon and Schuylkill Counties conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nesquehoning and Lansford Police Departments in Carbon County.
The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
Senior Judge Kosik ordered that a presentence investigation take place. A sentencing date has not yet been scheduled.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is imprisonment for ten years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public, and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.Cambria County Man Sentenced to Probation, Fined for Conspiring to Conceal Money from the IRSRead the Press Release
JOHNSTOWN, Pa. - A resident of Vintondale, Pa., has been sentenced in federal court to probation and ordered to pay a fine in the amount of $2,500, on his conviction of conspiracy, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson. imposed the sentence on Alvin Miller, 60.
According to information presented to the court, from June 9, 2007, to April 15, 2008, Miller conspired with others to defraud the United States by assisting a co-conspirator in concealing money from the Internal Revenue Service in order for the co-conspirator to avoid paying income tax.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation and Ebensburg Borough Police Department for the investigation leading to the successful prosecution of Miller.
California Man Admits Role in Distributing Millions of Dollars’ Worth of Untaxed CigarettesRead the Press Release
CAMDEN, N.J. – A California man today admitted his role in a conspiracy to distribute untaxed contraband cigarettes from New Jersey to California, U.S. Attorney Paul J. Fishman announced today.
Jia Yongming, 45, of Monterey Park, Calif., pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to Count One of an Indictment charging him with conspiracy to ship, transport, receive, possess, sell, distribute and purchase more than 3.7 million untaxed cigarettes.
Yongming was arrested and charged in February 2011 along with Yazhou Wu, 29, of Diamond Bar, Calif., and Johnny Chan Koon Ha, 36, of Corona, Calif. Also charged was Ricky Le, 52, of Diamond Bar, Calif., who is currently not in the United States. Ha has since pleaded guilty and is awaiting sentencing. Wu fled after his initial appearance in court, and his whereabouts are currently unknown.
According to documents filed in this case and statements made in court: Most states, including California, require a stamp to be placed on packs of cigarettes indicating the appropriate state tax has been paid. From May 2009 through May 2011, California imposed a tax of $0.87 on each pack of cigarettes. As part of an FBI undercover investigation, the cigarettes, which had been shipped to Port Newark, N.J., from China, were taken by truck to the conspirators in California, where undercover FBI agents delivered them to the defendants and received payment of $225,000. The money paid to the FBI agents was their commission for delivering a total of five loads of cigarettes. The state of California lost more than $2 million in taxes as a result of this conspiracy.
The charge to which Yongming pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 29, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and special agents of HSI-ICE, under the direction of Special Agent in Charge Andrew McLees, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Dara Aquila Govan and Jonathan W. Romankow of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
13-407Defense counsel: Thomas F.X. Dunn Esq., Glen Rock, N.J.
Yongming, Jia Indictment
Bucks County Man Charged with Creating Child PornRead the Press Release
Thomas Rafferty, 67 of Levittown, PA was charged today by Indictment with three counts of employing a minor to create an image of the minor engaging in sexually explicit conduct, five counts of creating obscene visual representations of children, and one count of possession of images of child pornography announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 200 years imprisonment, with a mandatory minimum sentence of 15 years, a mandatory minimum term of 5 years supervised release after release from prison, up to lifetime supervised release, a $2.25 million dollar fine, and a $900 special assessment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations, with assistance from the Naval Criminal Investigative Service. It is being prosecuted by Assistant United States Attorney Michael L. Levy.
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Brothers Plead Guilty to Conspiracy to Illegally Export Firearm Parts to ThailandRead the Press Release
Two brothers who were arrested in June 2013 in connection with a conspiracy to illegally ship firearms parts to Thailand, have pleaded guilty in U.S. District Court in Seattle to conspiracy, announced U.S. Attorney Jenny A. Durkan. NARES LEKHAKUL, 36, a lawful permanent resident of Bellevue, Washington, pleaded guilty today and NARIS LEKHAKUL, 42, a Thai citizen arrested in June 2013 at SeaTac Airport pleaded guilty last week. Both men are scheduled to be sentenced by U.S. District Judge Richard A. Jones on January 24, 2014.
In their plea agreements the brothers admit that NARIS LEKHAKUL, while living in Thailand, identified the firearms parts he wanted ordered and shipped overseas. Initially the gun parts were sent to his brother NARES’ home in Bellevue, Washington, where NARES LEKHAKUL attempted to disguise the shipments which were sent on to Thailand. After one shipment was seized in 2011, NARIS LEKHAKUL recruited four other people to receive the shipments of firearms parts, disguise them, and send them on to Thailand. The co-conspirators did not obtain appropriate licenses to make the shipments. The co-conspirators would use fake names and fake invoices to try to avoid detection, and they packed various firearms parts in specific ways to try to avoid detection by x-ray scanners. Members of the group shipped various firearms parts with false labels. For example, in one instance they shipped magazines for .45 caliber handguns, while labeling them “Vented steel case for electronic components” or “replacement springs and metal caps for bottling machine.” Other shipments were labeled as “hobby parts,” or “glow in the dark marker sets.” In all, the group is believed to be responsible for more than 240 shipments of restricted firearms components. The defendants did not ship any assembled firearms or entire firearms disassembled.
Prosecutors have agreed to recommend a sentence of four years in prison for NARIS LEKHAKUL, and 30 months in prison for NARES LEKHAKUL. Judge Jones is not bound by the recommendation and can impose any sentence up to the five year maximum.
In addition to the LEKHAKUL brothers, these additional defendants have also pleaded guilty: WITT SITTIKORNWANISH, 24, a U.S. citizen residing in the Los Angeles area; WIMOL BRUMME, 41, a Thai citizen residing in Las Vegas; SANGSIT MOWANNA, 35, a U.S. citizen residing in the Los Angeles area; and
SUPANEE SAENGUTHAI, 35, a Thai citizen residing in Berkeley, California.
The Department of State promulgates the United States Munitions List, which consists of categories of defense articles and services that cannot be exported without a license issued by the Department of State. The U.S. Munitions List includes the firearms’ parts and components shipped in this case. As a result, the export of firearms components requires an export license.
The case is being investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the U.S. Postal Inspection Service.Baltimore Man Exiled to 10 Years in Prison on Drug OffenseRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Taji Hart, age 32, of Baltimore, today to 10 years in prison followed by three years of supervised release for possession with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to his plea agreement, on July 27, 2012, after receiving information about a fight involving a man with a handgun who was driving a vehicle, police officers saw the vehicle in the 2200 block of West Fayette Street in Baltimore. The officers saw Hart drive the vehicle away. Officers stopped the vehicle in the 2100 block of West Saratoga Street and seized a loaded .40 caliber Glock handgun and a plastic bag with nine gel capsules containing heroin from the vehicle. Hart admits that he is a career offender. He has five previous drug convictions.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney H. Brandis Marsh, Jr., a cross-designated Baltimore City Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.
Anchorage Heroin Ring sentenced in Federal CourtRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Jared Thomas Bowers and Christopher Thomas Mejia, both residents of Anchorage, have been sentenced in federal court in Anchorage for their convictions of the crimes of drug trafficking conspiracy, attempted possession of heroin with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. A federal jury of seven men and five women returned guilty verdicts for Bowers and Mejia on July 29, 2013.
Last week, Chief U.S. District Court Judge Ralph R. Beistline imposed a sentence of 144 months on 23 year-old Bowers. Today, Judge Beistline sentenced 24 year-old Mejia to 181 months in prison. Judge Beisline sentenced Mejia to an additional 6 months imprisonment for violation of supervised release in a previous federal case for his 2007 conviction of felon in possession of a firearm.
According to information presented to the court by Special Assistant U.S. Attorney Erin White Bradley, who prosecuted the case, the evidence presented at trial established that Mejia and Bowers conspired to distribute approximately 97 grams of heroin. They supplied their co-defendant, Rhadames Marmolejos, Jr., with heroin on eight separate occasions, which Marmolejos then sold to an undercover agent working for the Drug Enforcement Administration. Trial testimony established that Bowers provided Marmolejos with heroin for seven of the drug deals. Mejia provided Marmolejos with heroin for one of the drug deals. On February 21, 2013, the United States Postal Service intercepted a package containing over one kilogram of heroin. Investigation revealed that Mejia intended to purchase one pound of that heroin for approximately $30,000. Law enforcement arrested Mejia and Bowers as the two waited in a vehicle to purchase the heroin. The two were in possession of approximately $27,000 in United States currency and a loaded .45 caliber semi-automatic pistol.
Prior to imposing sentence, Judge Beistline noted Bowers’ significant involvement in this drug trafficking conspiracy, as well as his management and supervision of co-defendant Marmolejos. In arriving at a sentence of 144 months, Judge Beistline emphasized the serious nature of the crime, as well as a need to deter further criminal activity. In sentencing Mejia, Judge Beistline noted a need to protect the community, in light of Mejia’s lengthy criminal history. Earlier this month, Marmolejos received a sentence of 84 months, after pleading guilty to the crime of drug trafficking conspiracy.
Ms. Loeffler commends the Drug Enforcement Administration and the United States Postal Inspection Service for the investigation leading to the convictions in this case. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.
21 October 2013
Violent Federal Felon Sentenced to 28 Years in Prison for Attacks on Prison GuardsRead the Press Release
A federal felon who participated in a violent assault at the Federal Detention Center at SeaTac, Washington in January 2012, was sentenced today to 28 years in prison, announced U.S. Attorney Jenny A. Durkan. ROY SCOTT FRITTS, 35, is already serving a life without parole sentence in Wyoming for an attempted murder conviction. U.S. District Judge James L. Robart ordered that the 28 year sentence be served consecutive to the life sentence imposed in Wyoming.
“This sentence works to ensure a dangerous felon never returns to threaten society,” said U.S. Attorney Jenny A. Durkan. “He persistently and repeatedly endangered the public, and in this case, the public servants we rely on to keep our prisons safe and secure. This violent and dangerous conduct will not be tolerated.”
According to records filed in the case, FRITTS and co-defendant Sabir Shabazz attacked a prison guard at the FDC on the morning of January 3, 2012. Shabazz beat the guard with a pipe. The men claimed the attack was an escape attempt, but video of the assault shows it was just a brutal attack. Other inmates intervened in the assault, likely saving the guard’s life. At the time of the assault, FRITTS was armed with a homemade knife called a shank. FRITTS threatened various officers with the shank during the melee. On July 10, 2013, FRITTS was convicted by jury verdict of one count of conspiracy to assault a federal officer, and three counts of assault of a federal officer with a dangerous weapon.
FRITTS had been sent to FDC SeaTac for a mental evaluation following a crime spree across five western states. FRITTS had absconded from parole in Oregon, stole a truck in Nebraska, shot and attempted to kill the driver who had given him a ride in Wyoming, carjacked a car in Utah and tried unsuccessfully to carjack a second vehicle. When arrested he was armed with a semi-automatic .45 caliber handgun.
In asking for the lengthy sentence prosecutors wrote to the court, “The attack on the officer was premeditated and carried out with shocking violence. The officer nearly died as a result of the attack and has been left permanently damaged. But for the intervention of other inmates, the officer would have been murdered. This was the worst officer involved assault in FDC SeaTac history. … Though FRITTS did not strike the blows, he is equally culpable. He helped plan out the attack, in anticipation of the assault he armed himself with a deadly weapon, and stood ready to assist while it was carried out.”
The FBI and Federal Bureau of Prisons (BOP) investigated the prison assault. The case was prosecuted by Assistant United States Attorneys Bruce Miyake and Mike Lang.
Two Oakland Men Sentenced to 21 Months for Selling Crack Near Elementary SchoolRead the Press Release
OAKLAND – Adell Burrell and Antwon Graham were sentenced on October 3 and October 16, respectively, each to 21 months in prison, for possession with intent to distribute cocaine base within 1,000 feet of a school, United States Attorney Melinda Haag announced.
Burrell pleaded guilty on June 12, and Graham pleaded guilty on June 27, 2013. Both offenses occurred at a location on Sycamore Street in Oakland, which is within 1,000 feet of the St. Andrew’s Baptist Missionary Elementary School and Kindergarten. Burrell admitted at his change of plea hearing, that on November 5, 2012, he possessed 6.7 grams of cocaine base with the intent to distribute it to others. Graham admitted in a plea agreement, that on November 2, 2012, he knowingly sold 0.34 grams of cocaine base for $20.00.
Burrell, 26, and Graham, 24, both of Oakland, were indicted by a Federal Grand Jury on March 21, 2013.
Burrell’s sentence was handed down by The Honorable Yvonne Gonzalez Rogers, U.S. District Court Judge, following a guilty plea to one count of violation of 21 U.S.C. §§ 860(a) and 841(a)(1). Graham’s sentence was handed down by The Honorable Jeffrey S. White, U.S. District Court Judge, following a guilty plea to one count of violation of 21 U.S.C. §§ 860(a) and 841(a)(1). Both defendants were also sentenced to six years of supervised release following their time in custody. Burrell and Graham were prosecuted as part of Operation Safe Schools, an ongoing series of cases spearheaded by the U.S. Attorney’s Office targeting drug trafficking near schools in high-crime areas.
Burrell has been in custody since June 13, and Graham has been in custody since May 1, 2013.
(Burrell indictment & warrant )
(Graham indictment & warrant )
Two More Romanian Nationals Sentenced for Obtaining Immigration Benefits as A Result of Marriage FraudRead the Press Release
BOISE — Victor Raul Fenesan, 32, and Claudia Luminita Beian, 34, Romanian nationals residing in Boise, Idaho, were sentenced today in federal court for obtaining a United States Visa by fraud and unlawful procurement of citizenship, respectively, U.S. Attorney Wendy J. Olson announced. The defendants were living in Blaine County at the time of the offense conduct. They were charged in separate indictments in September 2012, and pleaded guilty to the charges on August 12, 2013.
U.S. District Judge Edward J. Lodge sentenced Fenesan and Beian each to two years’ probation and imposed a $2,000 fine. Judge Lodge also entered an order revoking Beian’s U.S. citizenship. Fenesan did not attempt to obtain U.S. citizenship. Fenesan and Beian will be subject to immigration enforcement action by U.S. Immigration and Customs Enforcement (ICE).
According to plea agreements filed in the cases, Fenesan and Beian admitted to marrying U.S. citizens in 2004 for the sole purpose of obtaining immigration benefits. Neither Fenesan nor Beian resided with their spouses as husband and wife, but rather continued to reside with each other. In April 2005, United States Citizenship and Immigration Services (USCIS) granted Fenesan and Beian lawful permanent resident Visas, which they would not have received had they disclosed the fraudulent nature of their marriages. In February 2010, Beian obtained naturalization as a United States citizen as a result of her fraudulent marriage.
“As this case demonstrates, abusing our immigration system to illegally obtain U.S. citizenship will not be tolerated,” said Brad Bench, special agent in charge of HSI Seattle, who oversees Idaho investigations. “These individuals will have a lifetime to contemplate the devastating consequences of manipulating the process, back in their home country and without the life they started to build in the U.S.”
The cases were investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Two More Defendants Sentenced in Staged Automobile Accident SchemeRead the Press Release
92 defendants have been charged to date in Operation Sledgehammer I-VI
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Jeff Atwater, Florida Chief Financial Officer, Florida Department of Financial Services, and Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, announce that defendants Wilfredo Sauceda, 33, of West Palm Beach, and Nelson Felix Martinez Torres, 47, also of West Palm Beach, were sentenced today by United States District Judge Kenneth A. Marra for their participation in an automobile insurance fraud scheme involving staged automobile accidents. Wilfredo Sauceda was sentenced to 40 months of incarceration, followed by three years of supervised release and ordered to pay restitution in the amount of $643,964.09; Nelson Felix Martinez Torres was sentenced to 70 months of incarceration, followed by three years of supervised release and ordered to pay restitution in the amount of $1,359,208.73.
Each of the defendants previously pled guilty to one count of conspiring to commit mail fraud, in violation of Title 18, United States Code, Section 1341, all in violation of Title 18, United States Code, Section 1349; multiple counts of mail fraud, in violation of Title 18, United States Code, Sections 1341 and 2; one count of conspiring to commit money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1), all in violation of Title 18, United States Code, Section 1956(h); and multiple counts of money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1)(A)(i), 1956(a)(1)(B)(i), 1956(a)(1)(B)(ii), and 2.
On September 30, 2013, Maria Testa Baceiro, a/k/a "Maria Testa," 29, of Miami, Olinda Rodriguez, 39, of West Palm Beach, and Yeisy Chouza, 31, of Miami, were sentenced by United States District Judge Kenneth A. Marra for their participation in the same scheme. Maria Testa Baceira was sentenced to 72 months of incarceration, followed by two years of supervised release and ordered to pay restitution in the amount of $4,232,248.04; Olinda Rodriguez was sentenced to 50 months of incarceration, followed by two years of supervised release and ordered to pay restitution in the amount of $1,447,139.23; and Yeisy Chouza was sentenced to 40 months of incarceration, followed by two years of supervised release and ordered to pay restitution in the amount of $558,261.55. On October 8, 2013, Iris Roca, of Davie, was sentenced by United States District Judge Daniel T.K. Hurley for her participation in the same scheme. Iris Roca was sentenced to 50 months of incarceration, followed by three years of supervised release and ordered to pay restitution in the amount of $1,135,577.23.
According to court documents, between approximately October 2006 and December 2012, the members of the conspiracy staged automobile accidents and thereafter caused the submission of false insurance claims through chiropractic clinics they controlled. To execute the scheme, Maria Testa Baceiro, one of the true owners of some of the chiropractic clinics involved in this scheme, and others, recruited individuals who had the medical or chiropractic licenses required by the State of Florida to open a clinic to act as "nominee owners" of the clinics. The defendants also recruited individuals, including defendants Yeisy Chouza, Wilfredo Sauceda, and Nelson Felix Martinez Torres, whom they referred to as "Perros" and "Perras" depending on their roles in the accidents, to participate in the staged accidents, and others to help the clinics launder the insurance proceeds. The defendants also hired complicit chiropractors and therapists, including licensed massage therapists Olinda Rodriguez and Iris Roca, who prescribed and billed for unnecessary treatments and/or for services that had not been rendered. Thereafter, complicit clinic employees prepared and submitted claims to the automobile insurance companies for payment for these unnecessary or non-rendered services. Defendants Yeisy Chouza, Wilfredo Sauceda, and Nelson Felix Martinez Torres also worked cashing checks for various chiropractic clinics. Twenty-one clinics participated in this scheme.
Starting with Operation Sledgehammer I in June 2011 and including the defendants charged in Operation Sledgehammer VI, 92 defendants have been charged for their participation in this automobile insurance fraud scheme. Of those 92 defendants, 56 have been charged federally by the U.S. Attorney's Office, resulting in court-ordered restitution of more than $5 million to the defrauded insurance companies. Thirty-six defendants have been charged by the Palm Beach County State Attorney's Office.
Mr. Ferrer commended the efforts of the FBI, IRS-CI, the Florida Department of Insurance Fraud, the Palm Beach County State Attorney's Office, and the Greater Palm Beach County Health Care Fraud Task Force for their outstanding work in this case. Mr. Ferrer also recognized the National Insurance Crime Bureau (NICB) for its collaboration and assistance in this investigation. The federal cases are being prosecuted by Assistant U.S. Attorney A. Marie Villafaña and the state cases are being prosecuted by the Palm Beach County State Attorney's Office.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Local Men Convicted of Production of Child PornographyRead the Press Release
CORPUS CHRISTI, Texas– Carlos Cortinas, 40, and Mark Anthony Stokes, 35, of Three Rivers, have entered pleas of guilty to sexual exploitation of a child, announced United States Attorney Kenneth Magidson.
During the pleas today, Cortinas and Stokes admitted that on May 13, 2013, police responded to a domestic violence call in Three Rivers. Stokes, who had been stabbed and cut by his wife, told officers that his wife had injured him after she discovered nude photos of minor female relative on a flash drive.
Stokes admitted to a sexual interest in children for the past 20 years and that he and his friend, Cortinas, had a previous conversation in which both discussed their mutual sexual interest in children.
Stokes told Cortinas he had nude images of the young female, which Cortinas asked to see. Stokes then sent some of the images of the child via text message from his cell phone. Within an hour, Cortinas then sent nude images of one of his minor female relatives as well. From that day forward, Stokes and Cortinas would send each other voyeur type images of these minor children taken without the their knowledge as well as other child pornography images downloaded from the Internet. Stokes stated that Cortinas also sent nude images of another child which he had taken. State search warrants were executed on both residences which resulted in the discovery of evidence related to the child pornography production described by Stokes. Senior U.S. District Judge John D. Rainey, who accepted the guilty pleas, has set sentencing for Feb. 18, 2014, at 4:30 p.m., at which time they each face a minimum of 15 and up to 30 years imprisonment. Both have been and will remain in custody pending that hearing.
This case, prosecuted by Assistant United States Attorney Lance Duke and investigated by the FBI, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Two Jackson County Men Plead Guilty to Methamphetamine ConspiracyRead the Press Release
Two Jackson County, Illinois, men pled guilty to an indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
On October 9, 2013, and October 17, 2013, Donald Gregory, 47, of Murphysboro, and Daniel Loden, 30, of Grand Tower, entered guilty pleas to the one-count indictment charging conspiracy to manufacture methamphetamine. The offense occurred between March 2011 and March 2013 in Jackson County. Gregory is facing a term in prison of 5-40 years, a $5,000,000 fine, and 4 years of supervised release. Loden is facing up to 20 years in prison, a $1,000,000 fine, and 3 years of supervised release. Both Gregory and Loden are being held without bond pending their January 2014 sentencing hearings.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office and Murphysboro Police Department.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Tomas Alvarado and Eliseo Lopez Martinez Sentenced in U.S. District CourtRead the Press Release
The United States Attorney(s Office announced that during a federal court session in Helena, on October 21, 2013, before U.S. District Judge Sam E. Haddon, TOMAS ALVARADO, age 59, and ELISEO LOPEZ MARTINEZ, age 50, residents of Turlock, California, were sentenced.
ALVARADO was sentenced to a term of:
Prison: 360 months
Special Assessment: $100
Forfeiture: $56,000 and multiple firearms
Supervised Release: 5 years
MARTINEZ was sentenced to a term of:
Prison: 324 months
Special Assessment: $100
Forfeiture: $56,000 and multiple firearms
Supervised Release: 5 years
They were sentenced in connection with their guilty pleas to conspiracy to possess with intent to distribute controlled substances.
In an Offer of Proof filed by Assistant U.S. Attorneys Joseph E. Thaggard and Brendan P. McCarthy, the government stated it would have proved at trial the following:
In late 2012, the FBI, DEA, the Montana Division of Criminal Investigation (MDCI), the ATF, various drug task forces based in Billings, the Billings Police Department, the Yellowstone County Sheriff(s Department, and the Montana Highway Patrol began to investigate the widespread distribution of methamphetamine, cocaine, and heroin in an area stretching from Billings to the Bakken oil fields of northeastern Montana and western North Dakota. In March 2013, the Idaho State Police also joined the investigation.
As part of the investigation, on March 1, 2013, the Montana Highway Patrol stopped a vehicle driven by an unindicted coconspirator on Interstate 90 near Park City. The vehicle was subsequently searched and found to contain one-quarter pound of methamphetamine and a quantity of heroin the unindicted coconspirator said consisted of 80 grams.
The unindicted coconspirator admitted to distributing large amounts of heroin and methamphetamine. The unindicted coconspirator stated that the sources of supply for the drugs were (Mateo( and (Tomas.( The descriptions provided by the unindicted conspirator of (Mateo( and (Tomas( matched those people known to law enforcement officers in Billings as MARTINEZ and ALVARADO.
On March 11, 2013, Idaho State Police stopped a vehicle driven by ALVARADO in Power County, Idaho. An adult female was a passenger in the vehicle. ALVARADO said he and the passenger had driven from Billings to Nevada the previous day and were returning to Billings. A search of the vehicle ensued. The authorities found a .40 caliber handgun, three gross pounds of a substance that yielded a presumptive Narcotics Identification Kit (NIK) test result for the presence of methamphetamine, and two gross pounds of a substance that yielded a positive NIK test result for the presence of cocaine.
On March 12, 2013, the authorities, acting under the authority of a search warrant, searched a residence in Billings occupied by MARTINEZ. The officers recovered three handguns, over $56,000 in United States currency, two pounds of suspected cocaine, six pounds of suspected methamphetamine, and over 100 grams of suspected heroin.
The officers also searched a motor vehicle at or near MARTINEZ(s residence in Billings. That vehicle was associated with MARTINEZ. The officers found 16 total firearms, including handguns, shotguns, and rifles (including two semi-automatic, SKS assault-style rifles) in the vehicle.
MARTINEZ was taken into custody when the search warrant was executed on March 12, 2013. When interviewed, MARTINEZ stated he had moved to Montana two or three months earlier as part of plan whereby he and ALVARADO distributed methamphetamine, cocaine, heroin, and marijuana in the Billings area. MARTINEZ estimated that he and ALVARADO had sold approximately 25 pounds of methamphetamine over the preceding two months.
On March 12, 2013, the authorities interviewed ALVARADO. ALVARADO stated that he and MARTINEZ had distributed methamphetamine in Billings since approximately October 2012 and moved to Billings in November 2012 as part of the distribution scheme. ALVARADO detailed that, between October 2012 and March 12, 2013, he and MARTINEZ distributed at least 80 pounds of methamphetamine to subordinate drug dealers in Montana.
On March 12, 2013, the authorities also interviewed MARTINEZ. MARTINEZ admitted that he had moved to Montana two to three months earlier and participated in a scheme whereby MARTINEZ and ALVARADO distributed methamphetamine, cocaine, heroin, and marijuana in Montana.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that they will likely serve all of the time imposed by the court. In the federal system, they do have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
This investigation was a part of Project Safe Bakken, which is a cooperative effort between the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Bureau of Indian Affairs (BIA), the U.S. Border Patrol, the U.S. Marshal's Service, the Environmental Protection Agency Criminal Investigation Division (EPA-CID), the Department of Homeland Security (DHS), the Montana Division of Criminal Investigation (MDCI), the Montana Highway Patrol, the North Dakota Bureau of Criminal Investigation (BCI), the Billings Police Department, the Yellowstone County Sheriff's Office, and the Idaho State Police.
Today's sentence is a product of diligent work by the very dedicated agents who have been joined together under the banner of Project Safe Bakken. As the work of this team - which includes law enforcement professionals from all branches of local, state, and federal law enforcement - goes forward, the people of Montana and North Dakota can expect more cases from affected communities. That is the mission and commitment of Project Safe Bakken." said U.S. Attorney Michael W. Cotter.
Texas Man Sentenced for Part in Drug Conspiracy Distribution RingRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that Fernellis Woods, 37, of Irving, Texas, was sentenced on October 18, 2013 by U.S. District Judge Elizabeth E. Foote to 130 months in prison with five years of supervised release for conspiracy with intent to distribute and distribution of cocaine. He pleaded guilty May 15, 2013.
Woods along with co-defendants, German Rodriguez, Tyrone Thibeaux, John Dauphin and Glenn Charles were indicted in April 2012 for conspiracy to possess with intent to distribute approximately 5 kilograms of cocaine between August 2008 and April 2011. According to evidence presented at the guilty plea, Rodriguez, of Houston, Texas, supplied multi-kilogram quantities of cocaine to a large scale Lafayette, La. drug trafficking/distribution organization including Woods and Thibeaux. On several occasions, Woods directed Charles to purchase cocaine from Rodriguez’s associate in Houston for distribution in the Lafayette area. On March 2, 2011, Charles delivered $44,000 to Rodriguez’s associate for payment of 2 kilograms of cocaine; on March 15, 2011, Charles delivered $36,000 to Rodriguez’s associate for payment of cocaine, and on March 30 2011, Charles picked up 2 kilograms of cocaine from Rodriguez’s associate to be delivered to Lafayette associates, to include Woods. Charles was stopped and arrested on the way to Lafayette. The approximate value of all the cocaine transferred from March 2, 2011 to March 30, 2011 was more than $115,000.Rodriguez, Dauphin and Charles previously pleaded guilty, and Dauphin is currently scheduled for sentencing on Feb, 14, 2014. Dates for Rodriguez and Charles’ sentencings, and Thibeaux’s trial have not been set.
Woods was arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The Drug Enforcement Administration, the Carencro Louisiana Police Department, the Houston Texas Police Department and the Waller County Texas Sheriff’s Office participated in this OCDETF investigation. Assistant U.S. Attorney Howard C. Parker is prosecuting the case.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Texas Man Pleads GuiltyIn Dog Fighting CaseRead the Press Release
KANSAS CITY, KAN. – A Texas man has pleaded guilty to holding a dog fight at his home, U.S. Attorney Barry Grissom said today.
Vertrick Jordan, 47, Tyler, Texas, pleaded guilty to one count of conspiracy to transport animals across state lines to participate in dog fighting. In his plea, Jordan admitted he conspired with co-defendants Pete Davis of Kansas City, Mo., and Melvin Robinson of Kansas City, Kan., to hold a dog fight at his residence in Smith County, Texas, on March 23, 2013. When agents raided the dog fight, 30 people were detained and several more fled the property on foot. Agents found a dog fighting pit had been built on the property. Two trophies were found next to the pit.Investigators learned Jordan had received a call March 19 and agreed to allow the dog fight to take place on his property. He was told the fight would be a “grand championship” match between two dogs that had won four previous fights to qualify. He was told the fight would be very private with only a few people attending. Those attending paid $30 to $40 each at the gate the night of the fight.
Sentencing is set for Jan. 21, 2014. Both parties have agreed to recommend a sentence of probation, 50 hours of community service and three years of supervised release. Jordan also agreed to a three-year prohibition against owning dogs.
Co-defendants include: Pete Davis, who was sentenced Oct. 10 to 16 months in federal prison.
Melvin Robinson, who was sentenced Oct. 10 to 10 months in federal prison.Grissom commended Assistant U.S. Attorney Tris Hunt and the following agencies that contributed to the investigation: The FBI, the Kansas City (KS) Police Department, the Harrison County (MO) Sheriff's Department, the Missouri State Highway Patrol, the Texas Department of Public Safety - Narcotics and Highway Patrol, East Texas HIDTA, the FBI Dallas Division - East Texas Resident Agencies, the American Society for the Prevention of Cruelty to Animals, the Texas Parks and Wildlife Department - Game Wardens, the Texas Department of Criminal Justice - OIG, the Lindale Police Department, the Smith County Sheriff=s Office, the Dallas Police Department and the Dallas County Sheriff=s Office and the American Society for the Prevention of Cruelty To Animals.
Sugar Land Physician Sentenced to Federal Prison for Diagnostic Testing ScamRead the Press Release
HOUSTON – Donald Gibson II, 57, of Sugar Land, is headed to prison following his conviction of conspiracy to commit health care fraud relating to medically unnecessary diagnostic testing and physical therapy, United States Attorney Kenneth Magidson announced today. Gibson entered a plea of guilty to conspiracy to commit health care fraud on April 1, 2013.
Today, U.S. District Judge Lynn H. Hughes, who accepted the guilty plea, took into consideration Gibson’s cooperation with federal authorities and handed him a sentence of 52 months in federal prison. Judge Hughes also ordered restitution in the amount of $6,943,478.87. The United States previously seized approximately $2.62 million in Gibson’s assets and froze another $505,455 Medicare was to pay to Gibson. As a result, these two amounts totaling $3,129,175 will be applied to Gibson’s restitution and subsequently returned to Medicare program.
As part of the scheme to defraud, Gibson ordered, prescribed and authorized medically unnecessary diagnostic tests and other procedures which included allergy tests, pulmonary function tests, vestibular tests, urodynamic tests and physical therapy, among others. These services were then billed to Medicare and Medicaid for payment under Gibson’s billing number. Gibson worked in conjunction with the owners and operators of medical clinics and diagnostic testing centers in the Houston area. As part of the scheme, Medicare patients were paid to show up at the clinics for testing. Patient recruiters were also paid for recruiting and bringing patients to the clinics for the unneeded testing.
From January 2007 through January 2012, Gibson caused more than $19.4 million in medical claims to the Medicare and Texas Medicaid Programs. As a result, Medicare deposited approximately $8.5 million into a bank account owned and controlled by Gibson.
Gibson’s co-defendant, Sunday Joseph Edem, is scheduled to be sentenced by Judge Hughes on Nov. 18, 2013.
This case is the result of a joint investigation involving multiple federal and state agencies including agents and investigators of the U.S. Department of Health and Human Services – Office of Inspector General, Railroad Retirement Board, Secret Service, Drug Enforcement Administration, FBI and the Texas Attorney General’s Medicaid Fraud Control Unit. Special Assistant U.S. Attorney Justin Blan and Assistant U.S. Attorney Andrew Leuchtmann are prosecuting this case with Assistant U.S. Attorney Kristine Rollinson overseeing the asset forfeiture.
Shawneetown Man Sentenced on Methamphetamine and Ammunition OffensesRead the Press Release
On October 17, 2013, Michael A. Lovell, 35, of Shawneetown, Ill., was sentenced in United States District Court in Benton on a three-count indictment charging him with conspiracy to manufacture methamphetamine, possession of methamphetamine-making materials, and being a felon in possession of ammunition, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Lovell was sentenced to a total of 151 months in prison, to be followed by 3 years of supervised release. Lovell was also fined $600. Evidence at the plea and sentencing hearings established that, between August 2010 and August 7, 2012, Lovell was involved with others in the manufacture of methamphetamine in Saline and Johnson Counties. On May 16, 2011, Saline County officers found Lovell passed out in the driver’s seat of a vehicle with the motor running and the car in gear. When Lovell and the vehicle were searched, officers located methamphetamine, methamphetamine-making materials, and ammunition. On August 7, 2012, Lovell was arrested in possession of a methamphetamine lab and methamphetamine-making materials in Johnson County. Lovell received an enhanced sentence based on his classification as a Career Offender.
The investigation was conducted by the Southern Illinois Drug Task Force, Johnson County Sheriff’s Office, Vienna Police Department, Saline County Sheriff’s Office, Illinois State Police Methamphetamine Response Team, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Randolph County Woman Pleads Guilty to Methamphetamine OffensesRead the Press Release
On October 17, 2013, Rachel S. Holt, 40, Sparta, Illinois, pled guilty to three methamphetamine-related offenses, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Holt pled guilty to a three-count indictment charging conspiracy to manufacture methamphetamine and two counts of possession of pseudoephedrine knowing that it would be used to manufacture methamphetamine. Evidence at the plea hearing established that, between 2009 and March 2013, Holt was involved with others in the manufacture of methamphetamine in in Jackson, Randolph, and St. Clair Counties. On March 17, 2010, Holt obtained pseudoephedrine at stores in both Sparta and Belleville. On September 30, 2011, Holt and four co-conspirators purchased pseudoephedrine together at Carbondale and Murphysboro stores. The pseudoephedrine was obtained for the purpose of manufacturing methamphetamine. Holt is currently being held without bond pending a January 30, 2014, sentencing hearing. At that time, Holt faces 5-40 years in prison, 4 years of supervised release and up to a $5,000,000 fine.
The investigation was conducted by the Jackson County Sheriff’s Office, Randolph County Sheriff’s Office, Murphysboro Police Department, Sparta Police Department, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Prosecution of Violent Group That Commited Armed Robberies in Iowa and Nebraska Concluded with A Combined Sentences of More Than 139 Years in Federal PrisonRead the Press Release
The Sarg’s Mini Mart and Seoul Foods Robberies Investigations have been completed. Sioux City Police Chief Doug Young and United States Attorney’s Office Sioux City Branch Chief Tim Duax reported the results of the investigation at a press conference held at the Sioux City Police Department on Friday October 18, 2013.
On October 11, 2013 the last of the conspirators responsible for the June 19, 2012 Hobbs Act robbery of Seoul Foods in South Sioux City, Nebraska, the July 13, 2012 Hobbs Act robbery of Sarg’s Mini Mart in Sioux City, Iowa and other crimes as well (e.g., a large gun-burglary, a drive-by shooting, and an aborted robbery) was sentenced in federal court to 312-months in prison. This dangerous interstate criminal conspiracy was brought to justice by a strong interagency and intergovernmental partnership. The community can be proud of how its governments (city, county, state, and federal) worked together to quickly mitigate this threat and solve these crimes even as members of the conspiracy counted on state lines to interrupt and complicate the investigation and protect them from justice.
Summary of Facts
At trial, the change of plea hearings, and the sentencings of the defendants the United States revealed the following:
Sometime before June 19, 2012, David Johnson, Rudy Johnson, and other men committed a home burglary in Sioux City, Iowa and stole a semi-automatic rifle with two magazines (each capable of carrying 24 rounds of ammunition) and 17 other firearms.
Rudy Johnson kept this weapon at his home until sometime after June 19, 2012 when he unwittingly sold it (and the 16 other weapons) to law enforcement. Subsequently, law enforcement covertly bought another short-barreled shotgun, a semi-automatic assault rifle, and a pistol from Rudy Johnson and discovered Rudy Johnson’s firearms and drug supplier in Omaha, Nebraska.
This supplier was Troy Gee. Eventually law enforcement bought another 14 firearms, 346 rounds of ammunition, 2 bullet proof vests and two ounces of crack from Troy Gee.
Meanwhile, on two other occasions, also before June 19, 2012, David Johnson, Joshua Fields, Rudy Johnson, Austin Peters, and perhaps other associates, participated in an aborted robbery and a completed drive-by shooting. Defendant acknowledges he knew of the completed drive-by shooting before he joined the robbery conspiracies.
On June 19, 2012, Christopher Bailey, Joshua Fields, David Johnson, Rudy Johnson, Terrence Miles, and Austin Peters entered, surveilled and later used the (now shortened) stolen semi-automatic rifle to rob the clerks at Seoul Foods in South Sioux City, Iowa (a business then engaged in interstate commerce). The clerks and their children (ages 4, 10, 12, and 14) were inside the store at the time. Video surveillance of Seoul Foods revealed the victims were all forced to the floor at gun-point. Christopher Bailey pumped (i.e., readied for firing) and aimed a bb-gun rifle (that looked like a semi-automatic rifle) and robbed the clerks Seoul Foods. David Johnson carried the shortened semiautomatic rifle during the robbery. Josh Fields carried a pistol-styled bb-gun. Terence Miles had a bar or club and Rudy Johnson had a knife. Austin Peters was the "look-out and getaway driver."
The men escaped to Sioux City, Iowa after the robbery (which is also where the men had earlier planned the robbery and acquired weapons for the robbery). As they fled, one of the confederates explained they would be safe in Iowa because different states had different laws and cops. The money was put into equal piles, by denominations, and dealt out like cards equally to all participants in Josh Fields' Kitchen.During all the above, Paige Mathison and David Johnson were romantically involved and cohabitating. After the Seoul Foods Robbery, Austin Peters who had been the look-out and getaway driver for that robbery, left Sioux City, Iowa, and Rudy Johnson, who had provided the shortened-rifle for the Seoul Foods Robbery, withdrew it from the group's possession. Paige and Dustin Mathison, however, were both still in Sioux City, and Ms. Mathison had a car.
Mathison knew David Johnson, Joshua Fields, Christopher Bailey, Terrence Miles, and Austin Peters (at least) robbed the Seoul Foods in South Sioux, City, Nebraska, on June 19, 2012, and that - after this - Johnson, Fields, and Bailey had a "hit list" of businesses they were considering robbing.
On a handful of occasions, Mathison drove Josh Fields and David Johnson around scouting "licks" (i.e., businesses they might rob) and discussing how to conduct the various robberies. During these trips the hunting party was armed with a sawed-off shotgun with an obliterated serial number, that she had acquired from her brother, Dustin Mathison.
Mathison, Johnson and Fields discussed robbing and scouted (1) a bank in Correctionville (where Mathison and Johnson had once lived); (2) a bank and (3) a Pump 'N Pack in the Morningside area of Sioux City, Iowa and, of course, (4) Sarg's Mini Mart.
Finally, on July 13, 2012, Mathison, Johnson, Fields, and Bailey armed themselves with Dustin Mathison's sawed-off shotgun and loaded into Paige Mathison's car. They prowled Sioux City, Iowa looking for targets until they selected Sarg's: a site they had staked out the night before. Paige Mathison dropped off Johnson, Fields, and Bailey in an alley about a block from the store, so they could enter Sarg's Mini Mart with the sawed-off shotgun. She then relocated her car from the insertion point to the predetermined extraction point (much nearer the store).
Inside Sarg's the three men entered and waited to rob the store-clerk with the firearm (then secreted in the sleeve of Josh Field's shirt). When the store proved too busy, the men stepped outside, waited, passed the weapon around, and finally reentered. Christopher Bailey aimed the sawed-off shotgun directly at the clerk's face. He told police he thought the shotgun was loaded with a yellow shotgun shell at the time.
After the robbery, Paige Mathison picked up her confederates and drove them away while they ducked down at times to avoid detection.
Later that day, Mathison attempted to conceal the crime by returning the sawed-off shotgun to her brother (from whom she had acquired it), and checking one of her confederates into a hotel room registered in her name.
Results
The investigation resulted in the following convictions and sentences:
Joshua Fields pled guilty on February 26, 2013, and on August 15, 2013, Joshua Fields was sentenced to 300 months’ imprisonment for Conspiracy to Commit Robbery; Possession of a Firearm in Furtherance of a Crime of Violence; Possession of a Short-Barreled Rifle; Conspiracy to Commit Robbery; Robbery; Possession of a Firearm in Furtherance of a Crime of Violence; and Possession of a Short-Barreled Shotgun, to be followed by 5-years supervised release. A special assessment of $700 was imposed.
David Johnson pled guilty on January 14, 2013, and on August 15, 2013, Johnson was sentenced to 343 months’ imprisonment for Conspiracy to Commit Robbery; Possession of a Firearm in Furtherance of a Crime of Violence; Possession of a Short-Barreled Rifle; Conspiracy to Commit Robbery; Robbery; Possession of a Firearm in Furtherance of a Crime of Violence; and Possession of a Short-Barreled Shotgun, to be followed by 5-years supervised release. A special assessment of $700 was imposed.
Rudy Johnson pled guilty on February 20, 2013, and on August 15, 2013, was sentenced to 194 months’ imprisonment for Conspiracy to Commit Robbery; Possession of a Firearm in Furtherance of a Crime of Violence; and Possession of a Short-Barreled Rifle, to be followed by 5-years supervised release. A special assessment of $400 was imposed.
Dustin Mathison pled guilty on May 2, 2013, and on May 30, 2013, was sentenced to 60 months’ imprisonment for Possession of a Short-Barreled Shotgun, to be followed by two-years supervised release. A special assessment of $100 was imposed.
Paige Mathison was convicted by jury at trial on June 19, 2013, and on August 21, 2013, was sentenced to 147 months’ imprisonment for Conspiracy to Commit Robbery; Robbery; Possession of a Firearm in Furtherance of a Crime of Violence; and Possession of a Short-Barreled Shotgun, to be followed by 5-years supervised release. A special assessment of $400 was imposed.
Terrence Miles pled guilty on March 13, 2013, and on August 15, 2013, was sentenced to 118 months’ imprisonment for Conspiracy to Commit Robbery; Possession of a Firearm in Furtherance of a Crime of Violence; and Possession of a Short-Barreled Rifle, to be followed by five-years supervised release. A special assessment of $300 was imposed.
Austin Peters pled guilty on March 26, 2013, and on August 15, 2013, was sentenced to 118 months’ imprisonment for Conspiracy to Commit Robbery; Possession of a Firearm in Furtherance of a Crime of Violence; and Possession of a Short-Barreled Rifle, to be followed by five-years supervised release. A special assessment of $300 was imposed.
Christopher Bailey pled guilty on February 26, 2013, and on October 11, 2013, was sentenced to 312 months’ imprisonment for Conspiracy to Commit Robbery; Possession of a Firearm in Furtherance of a Crime of Violence; Possession of a Short-Barreled Rifle; Conspiracy to Commit Robbery; Robbery; Possession of a Firearm in Furtherance of a Crime of Violence; and Possession of a Short-Barreled Shotgun, to be followed by 5-years supervised release. A special assessment of $700 was imposed.
Additionally, in the District of Nebraska, on October 7, 2013, Troy Gee was sentenced to 84 months’ imprisonment, for the firearms and drug trafficking offenses discovered during this investigation, to be followed by 5-years supervised release. A special assessment of $500 was imposed.
Restitution obligation of $9000 payable to Northeast Nebraska Insurance shall be joint and several with the following co-defendants: Austin Peters; Joshua Fields; Christopher Bailey; Rudy Johnson; Terrence Miles; and David Johnson.
Restitution obligation of $600 payable to Sarg’s Mini Mart shall be joint and several with the following co-defendants: Joshua Fields; David Johnson; Christopher Bailey; and Paige Mathison.
There is no parole in the federal system.
“This dangerous criminal conspiracy was brought to justice as a result of excellent cooperation among federal, state and local law enforcement,” said United States Attorney Sean R. Berry. “The community can be proud of how its law enforcement agencies worked together to quickly solve these crimes and prevent further violence.”
Fields, Johnson, Johnson, Mathison, Mathison, Miles, Peters, and Bailey are being held in the United States Marshal’s custody until they can be transported to a federal prison.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is No. CR12-4083-MWB.
The case is part of Project Safe Neighborhoods, a cooperative local, state, and federal program aimed at the enhanced prosecution of gun and violent crimes. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, The Iowa Department of Public Safety, the Sioux City, Iowa Police Department, the South Sioux City, Nebraska Police Department, the Woodbury County Iowa Attorney’s Office, and the Dakota County Nebraska Attorney’s Office. The case was prosecuted by Assistant United States Attorneys Robert Sigler (in Omaha Nebraska) and Forde Fairchild.Portland Man Charged with Aiming a Laser Pointer at AircraftRead the Press Release
PORTLAND, Ore. - Stephen Francis Bukucs, 39, a resident of Northeast Portland, was arrested in Portland on Friday evening, October 18, 2013, on charges of aiming a laser pointer at two aircraft. A federal indictment, unsealed this morning by the court, alleges Bukucs aimed a laser pointer at United Airlines Flight 1406 and JetBlue Flight 1205 in Portland on October 13, 2013.
Bukucs is being held in custody at the Multnomah County Detention Center and will have his first court appearance today at 1:30 p.m. before U.S. Magistrate Judge Dennis M. Hubel for arraignment on the indictment.
Knowingly aiming a laser pointer at an aircraft is a felony offense under federal law, carrying a maximum sentence of five years in prison and a $250,000 fine.
The arrest is the result of a joint investigation by the Federal Bureau of Investigation (FBI), the Federal Aviation Administration (FAA), the Port of Portland Police, and the Portland Police Bureau. The Transportation Security Administration (TSA), the Washington County Sheriff’s Office and the Clackamas County Sheriff’s Office also provided substantial assistance.
An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U. S. Attorney Stephen F. Peifer
For more information, please see the attached indictment Here
Philadelphia Man Sentenced on Drug ChargeRead the Press Release
Jackson, Miss - Dwight Deshay Willis, 29, of Philadelphia, Mississippi, was sentenced in U.S. District court today to 82 months in federal prison followed by five years of supervised release for possession with intent to distribute more than 50 grams of methamphetamine, announced U.S. Attorney Gregory K. Davis. Willis entered a guilty plea before U.S. District Judge Daniel P. Jordan III on July 31, 2013.
Willis was arrested following a traffic stop in August, 2012 when he was found to be in possession of over 200 grams of methamphetamine with a purity of over 90%.
This case was investigated by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics and the Neshoba County Sheriff’s Department. It was prosecuted by Assistant U.S. Attorney Erin Chalk.###
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Permian Basin Men Convicted in Multi-Million Dollar Bank Fraud SchemeRead the Press Release
Raymond Holguin, Jr., of Odessa, Texas, faces up to 30 years in federal prison after pleading guilty this morning to defrauding My Community Federal Credit Union of millions of dollars announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
Holguin, age 35, was the third man to enter a plea to conspiracy to commit bank fraud in connection with this investigation. Michael Franco, age 40, and Gustavo Pizarro, age 37, both of Midland, previously entered guilty pleas to the same charge and are awaiting sentencing.
According to court records, beginning in April 2007, Holguin, Pizarro and Franco engaged in an 18-month-long scheme that defrauded the FDIC-insured financial institution through the issuance of fraudulent car loans. Holguin, operator of Motor City, an auto dealership in Odessa, TX; Pizarro, General Sales Manager at Motor City; and, Franco, a loan officer at My Community Federal Credit Union, all devised a plan to approve car loans for customers who did not meet the credit union’s lending standards. Holguin and Pizarro presented auto loan applications to Franco that included false information such as inflated income. Holguin and Pizarro would also add amenities to the cars that did not exist in an effort to increase the value of the car and receive a larger loan amount. Franco never verified any of the information contained in the loan documents before processing the loans and, in return, was paid a kickback by Holguin for every car loan that was approved. The scheme resulted in Franco approving more than 300 fraudulent car loans on behalf of Holguin and Pizarro which led to a loss at My Community Federal Credit Union of approximately $3.9 million dollars.Franco is scheduled to be sentenced on November 22, 2013 before United States District Judge Robert A. Junell. Pizarro is scheduled for January 9, 2014. A sentencing date for Holguin has yet to be scheduled.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney V. LaTawn Warsaw.
Parkersburg Man with Kilo of Cocaine, Firearm Sentenced to More Than 22 Years in Prison on Federal ChargesRead the Press Release
Curry fired a .40 caliber pistol during attempt to escape police custody
CHARLESTON, W.Va. – A Parkersburg man who possessed more than a kilo of cocaine during a May drug buy was sentenced today in federal court in Charleston to a total of 22 years and seven months in federal prison, announced U.S. Attorney Booth Goodwin. Richard Curry, Jr., also known as “Cheese” and “Curtus Javon McDonald,” previously pleaded guilty in July to possession with intent to distribute cocaine and discharging a firearm during a drug trafficking crime. On May 3, 2013, a confidential informant working with the Metropolitan Drug Enforcement Network Team (MDENT) arranged to purchase cocaine from Curry. Police observed Curry, who was driving a tan Hummer SUV at the time, arrive in the parking lot of the informant’s Charleston apartment complex. Curry, 31, later entered the informant’s residence where he was immediately taken into custody by police. Curry, who began resisting arrest, fired a single shot from a Taurus .40 caliber pistol that he had hidden inside of his jacket. No one was injured as a result of the shooting. Police determined that the bullet entered into the floor of the residence.
“Time and time again, Mr. Curry has broken our federal drug laws,” U.S. Attorney Booth Goodwin said. “In fact, this is his third felony drug conviction. Now he will have more than 22-plus years in prison to think about what he did.”
Police conducted a search of the defendant and found a package wrapped in electrical tape hidden on Curry’s person. The package contained cocaine weighing 1.2 kilograms.
Police also obtained a search warrant for the defendant’s Hummer SUV. During a search of the vehicle, officers found 68 grams of crack cocaine and 73 grams of cocaine. Officers performed a check of the vehicle’s registration and determined that it had been registered to Curtus Javon McDonald.
On May 6, 2013, Curry appeared before United States Magistrate Judge Dwayne L. Tinsley for an initial appearance on a criminal complaint that was filed against him. During the hearing, Curry represented to the Court that his name was Curtus Javon McDonald. However, after a fingerprint scan was performed on the defendant by the United States Marshals Service, the defendant’s true identity was determined to be that of Richard L. Curry, Jr.
Curry is responsible for distributing cocaine to a confidential informant on at least six other occasions. During the illegal drug transactions, Curry distributed half-kilogram quantities of cocaine in exchange for cash.
In today’s hearing, United States District Judge Thomas E. Johnston sentenced the defendant to a total of 271 months in prison: 151 months for one count of possession with intent to distribute cocaine and 120 months for using, carrying, and discharging a firearm during a drug trafficking crime. Judge Johnston ordered the prison sentences to be served consecutively.
The investigation was conducted by MDENT and the Drug Enforcement Administration. Assistant United States Attorney Monica D. Coleman handled the prosecution.
Omaha Felon Convicted of Possessing a Firearm Sentenced to PrisonRead the Press Release
United States Attorney Deborah R. Gilg announced today that the Honorable Laurie Smith Camp, U.S. District Court Judge, sentenced Thomas Ray Coonce, 58, to 24 months imprisonment to be followed by 3 years of supervised release. He was also ordered to pay a $100 special assessment, following his conviction for being a felon in possession of a firearm.
In July 2011, a cooperating witness working with law enforcement bought ½ gram of methamphetamine from Coonce. After Coonce asked the cooperator if he wanted to buy a gun, Omaha Police officers obtained a search warrant for Coonce’s residence. The warrant was served and officers located 13 firearms and one that had previously been reported stolen. Federal law makes it a felony for anyone who has been convicted of a felony offense to possess a firearm.
The Omaha Police Department was responsible for the investigation of this case.
Ohio Woman Pleads Guilty to Submitting More Than $164,000 of False Insurance Claims to the U.S. Postal Service-Falsely Claimed That Parcels Were Damaged or Lost in the Mail-Read the Press Release
WASHINGTON – Levette J. Douglas, 35, of Toledo, Ohio, pled guilty today to a federal charge of conspiracy to commit mail fraud for her role in a scheme that defrauded the U.S. Postal Service out of over $164,000 through the submission of false insurance claims.
The guilty plea, which took place in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr. and Paul L. Bowman, Special Agent in Charge, Capital Metro Area Field Office, U.S. Postal Service, Office of the Inspector General.
As part of the plea agreement, Douglas agreed to $164,859 in criminal forfeiture and restitution. Under voluntary federal sentencing guidelines, she faces between 21 and 27 months in prison. The Honorable Rudolph Contreras scheduled sentencing for Jan 16, 2014.
According to the government’s evidence, from April 2010 to July 2013, Douglas and her co-conspirators submitted false claims to the Postal Service for allegedly damaged or lost parcels. As part of this scheme, Douglas and others purchased insurance for approximately 325 parcels that were sent through the mail. They later falsely claimed that the parcels were damaged or lost, often submitting forged or fictitious documents to support their claims.
For example, on one occasion, Douglas submitted a false affidavit purporting to be from a postal letter carrier in support of a claim that a parcel was not delivered. The affiant, allegedly a postal letter carrier with the initials M.M., stated that she had not delivered any parcels to the recipient for several months. The affiant also provided a phone number in case there were questions. That phone number was Douglas’s phone number. In fact, the parcel in question was delivered and the recipient signed a delivery receipt.
As a final part of this scheme, Douglas also mailed to the Postal Service’s accounting department forged internal postal forms purporting to be from Postal Service employees verifying the false claims. In total, the Postal Service paid $164,859 based on these false claims.
In announcing the guilty plea, U.S. Attorney Machen and Special Agent in Charge Bowman commended the investigative work of Special Agent Jason Manning of the U.S. Postal Service Office of Inspector General. They also praised the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Corinne Kleinman and Nicole Wattelet; Criminal Investigator Matthew Kutz; Assistant U.S. Attorney Diane Lucas, who worked on forfeiture issues, and Assistant U.S. Attorney David Johnson, who is prosecuting the case.
13-355Ohio Man Pleads Guilty to Federal Charge in June 2013 Incident at White House ComplexDefendant Hoped to Spray-Paint the White House, Crashed Unattended Jeep in Hopes of Diverting Law EnforcementRead the Press Release
WASHINGTON - Joseph Clifford Reel, 32, of Kettering, Ohio, pled guilty on Oct. 4, 2013 to a federal charge stemming from an incident in which he rigged his Jeep to travel, unattended, toward the White House, announced U.S. Attorney Ronald C. Machen Jr. and Kathy A. Michalko, Special Agent in Charge of the Washington Field Office of the U.S. Secret Service.
Reel pled guilty in the U.S. District Court for the District of Columbia to a charge of assaulting, impeding, intimidating, and interfering with an officer or employee of the United States with a dangerous weapon. The plea agreement, which is contingent upon the Court’s approval, calls for Reel to be sentenced to 35 months of incarceration, to be followed by five years of supervised release. The plea agreement also calls for Reel to pay $5,345 in restitution to the U.S. Park Service for the damage he caused in the incident. The Honorable Rudolph Contreras scheduled sentencing for Jan. 10, 2014.
According to a statement of offense, signed by the defendant as well as the government, Reel left his residence in Ohio on June 6, 2013, in his 2008 Jeep Patriot, heading to Washington, D.C. for the purpose of spray-painting the “Don’t Tread on Me” snake on the White House residence, believing the action would lead others to “stand up against government.”
On June 9, 2013, shortly after 3 a.m., Reel rigged his Jeep to crash into the White House complex. The vehicle was traveling at about 40 mph upon impact.
Reel, who was not in the Jeep, had affixed a wooden block to the accelerator and reached into the vehicle to shift it into drive. The vehicle, which Reel had parked on Pennsylvania Avenue near the White House, then began moving toward the White House complex, specifically, a Secret Service guard post. At the time, an officer was on-duty and inside the guard booth. At collision, the Jeep hit a light post, a steel bollard, and a steel bike rack, causing $5,345 in damage to property of the U.S. Park Service.
Just before he set the Jeep in motion, Reel called 911 and warned that something was about to be staged at the White House. He made the call in hopes of causing members of law enforcement to convene at the White House complex, intending to create a distraction that would increase his chances of gaining access to the White House residence and spray-painting the “Don’t’ Tread on Me” snake on the building. Instead, Reel was arrested inside the White House Complex, within minutes of the Jeep’s impact.
As part of the investigation, law enforcement searched the Jeep and found hundreds of rounds of ammunition, eight knives of various sizes, two machetes, a hand-held spotting scope, and other items. A spray-paint can was found on the White House complex grounds, near the area where Reel was apprehended.
Reel has been in custody since his arrest.
In announcing the plea, U.S. Attorney Machen commended the work of the Secret Service, which swiftly responded to the incident and investigated the case. He also expressed appreciation for the assistance provided by the Metropolitan Police Department (MPD) and the Dayton Resident Agency of the FBI’s Cincinnati Field Office. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Legal Assistants Ashley Kellam and Donice Adams, Paralegal Specialist Selena Zuhoski, and Assistant U.S. Attorney Maia L. Miller, who is prosecuting the case.
13-356New York Man Pleads Guilty to Conspiring to Distribute CocaineRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that George Abreu, age 36, of New York City, pleaded guilty today to the charge of conspiracy to distribution cocaine hydrochloride before Senior United States District Court Judge Edwin M. Kosik.
According to United States Attorney Peter J. Smith, the charge and guilty plea are part of a continuing investigation into a Pittston area drug ring by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Pennsylvania Attorney General’s Office. Abreu appeared today in federal court and admitted to being involved in the supply of between 3.5 and 5 kilograms of cocaine.
Assistant United States Attorney John Gurganus is prosecuting the case.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Navajo Man from Arizona Pleads Guilty to Assaulting Federally Commissioned Tribal OfficerRead the Press Release
ALBUQUERQUE – Donovan Eric Williams, 24, an enrolled member of the Navajo Nation who resides in Whippoorwill, Ariz., pleaded guilty to an indictment charging him with assaulting a federal officer, announced Acting U.S. Attorney Steven C. Yarbrough and Director John Billison of the Navajo Nation Division of Public Safety.
Williams was arrested on April 24, 2013, based on a criminal complaint charging him with assault with a dangerous weapon. According to the complaint, Williams assaulted a Sergeant of the Navajo Nation Division of Public Safety by deliberately veering his vehicle into her police vehicle on March 21, 2013, near Church Rock, N.M. Williams subsequently was indicted and charged with assaulting a federal officer who was engaged in the performance of her official duties because the tribal officer possessed a Special Law Enforcement Commission from the BIA at the time of the assault.
In his plea agreement, Williams admitted intentionally assaulting a federal officer on March 21, 2013. Williams acknowledged that, at the time of the assault, he was being pursued by a tribal officer who was attempting to pull his vehicle over and the federal officer was approaching him from the opposite direction. Williams admitted intentionally striking the federal officer’s vehicle even though the officer had pulled her marked police vehicle off to the side of the road to avoid a collision. Williams subsequently learned that the officer was commissioned as a federal law enforcement officer at the time of the assault.
Under the terms of his plea agreement, Williams will be sentenced to 46 months in prison followed by a term of supervised release to be determined by the court. Williams is in federal custody and will remain detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
Mathon Principals Sentenced to Lengthy Prison Terms for Operating $166 Million Ponzi Scheme That Targeted Lds Church MembersRead the Press Release
PHOENIX – On Sept. 30, 2013, three defendants - Duane Hamblin Slade, 42, of Austin, Tex.; Guy Andrew Williams, 42, of Mesa, Ariz.; and Brent F. Williams, 66, of Mesa, Ariz. - were sentenced to lengthy prison terms by U.S. District Judge Jack Zouhary, a visiting judge from the Northern District of Ohio, for their roles in operating a $166 million Ponzi scheme that targeted members of their church. Slade was sentenced to 180 months (15 years), Guy Williams was sentenced to 150 months (12.5 years), and Brent Williams was sentenced to 90 months (7.5 years). In addition, Slade was also sentenced to a concurrent 15-year sentence for his participation in a separate fraud scheme, initiated after the cessation of the previous scheme, in which he solicited more money from fellow church members under false pretenses.
U.S. Attorney John Leonardo stated, “This case involves one of the largest, most sophisticated fraud schemes in Arizona history. The defendants bilked hundreds of victims into investing over $166 million into a Ponzi scheme over a period of several years. They preyed on the religious bonds they shared with many of their investors and siphoned millions of dollars out of Mathon through excessive fees and a complicated web of side deals involving companies they secretly owned or controlled. The stiff sentences imposed by Judge Zouhary appropriately hold the defendants accountable for their crimes and send a strong message to others who would engage in such misconduct.”
“Our agency hopes these lengthy prison sentences will deter others from defrauding unsuspecting investors in the future. This scheme serves as an unfortunate reminder that all investors should exercise extreme caution before trusting someone with their hard-earned money” said Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of Internal Revenue Service, Criminal Investigation.
“Postal Inspectors will continue to partner with fellow law enforcement agencies to bring to justice those who use the mail to perpetuate fraud,” said Terry Donnelly, Acting Phoenix Division Postal Inspector in Charge. “The United States Postal Inspection Service remains dedicated to our mission to enforce the laws that defend the nation’s mail system from illegal use and ensure public trust in the mail.”
FBI Special Agent in Charge Douglas G. Price, Phoenix Division stated, “When individuals take advantage and defraud legitimate investors for their own financial gain it erodes the public’s trust. The FBI and our law enforcement partners are committed to holding those accountable who intentionally defraud hard working Americans.”
Slade was convicted of both offenses via guilty plea in June 2013, and the Williamses were convicted following a two-week trial in June 2013. According to the evidence at trial, the defendants served as founders and/or officers of a group of Mesa, Arizona-based investment funds known as the “Mathon” entities, which collected more than $166 million in funds from investors from February 2002 until April 2005. The evidence at trial further showed that Mathon’s investors, the majority of whom were members of the Church of Jesus Christ of Latter-Day Saints and hailed from Arizona, Utah, and Nevada, were generally told that their money would be used to make short-term loans to third-party borrowers at a high interest rate and that Mathon had an extensive track record of making such loans. In fact, the defendants and their business partners ran Mathon as a Ponzi scheme - that is, by using the overwhelming majority of incoming money from new investors to pay back initial investors. The defendants and their business partners paid themselves extravagant salaries and bonuses exceeding $10 million and also used their investors’ money to make millions of dollars of “loans” to companies they secretly controlled.
The investigation in this case was conducted by the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigation Division; the U.S. Postal Inspection Service; and the Securities Division of the Arizona Corporation Commission. The prosecution was handled by Assistant U.S. Attorneys Peter S. Sexton, Kevin M. Rapp, and Dominic Lanza.
CASE NUMBER: CR-09-1492-PHX-ROS
RELEASE NUMBER: 2013-079_Mathon_etal.For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Man Who Hid Cocaine, Nearly $70,000 in Cash at Charleston Residence Gets 2 ½ Years in Federal PrisonRead the Press Release
CHARLESTON, W.Va. – A 24-year-old man who had 196 grams of cocaine and nearly $70,000 in cash hidden at his Charleston residence in February 2012 was sentenced today to two and a half years in federal prison, announced U.S. Attorney Booth Goodwin. Gabriel J. Gonzalez previously pleaded guilty in June to possession with intent to distribute cocaine. Gonzalez’s sentence was handed down by United States District Judge Thomas E. Johnston in Charleston.
On February 28, 2012, members of the Charleston Police Department executed a search warrant on Gonzalez’s Charleston residence. During the search, police found cocaine, $69,440 in cash, and a set of digital scales. The cocaine seized by law enforcement weighed 196 grams. Gonzalez told police that he intended to sell the cocaine. Gonzalez also told police that the cash inside his residence was proceeds collected from illegal drug transactions.
This case was investigated by the Charleston Police Department. Assistant United States Attorney Blaire Malkin handled the prosecution.
Louisville Man Pleads Guilty to Online Enticement and Production of Child PornographyRead the Press Release
LOUISVILLE, Ky. – A Louisville Man has pleaded guilty to violating federal child exploitation laws, announced David J. Hale, United States Attorney for the Western District of Kentucky. Marvin Duane Monk, age 46, entered the guilty pleas before Senior U. S. District Judge Charles R. Simpson, III, in federal court in Louisville, on September 27, 2013. Sentencing in the matter is scheduled before Judge Simpson on January 14, 2014, at 2:00 p.m.
Monk pleaded guilty to a two-count Indictment returned by a federal grand jury on October 2, 2012. Monk was previously charged in a September 6, 2012, Criminal Complaint.
According to court records, on August 19, 2012, Monk’s spouse discovered that he had been engaging in sexual activities with her minor daughter in their Louisville residence. Monk left the residence in Louisville, and moved to a hotel in Clark County, Indiana. Shortly thereafter, he took the minor from Louisville to Indiana with him. Not knowing where her daughter was, the mother contacted the Louisville Metro Police Department and filed a missing person report. She also filed for, and received, an Emergency Protection Order (EPO) against Monk in Jefferson County, Kentucky. The EPO included an order that Monk have no contact with either his wife or the minor stepdaughter.
Two days later, the mother learned that Monk and her daughter were staying at a motel in Clarksville, Indiana. Clark County Sheriff’s deputies were dispatched to the motel where they found Monk and the minor.
Monk subsequently admitted to law enforcement officers that he brought his stepdaughter to Indiana from her home in Louisville. Monk also admitted to engaging in a sexual relationship with the minor, and to recording the sexual activity. The Clark County Sheriff’s Department executed a search warrant on the motel room. Evidence seized included a video recorder, video tapes, and cellular telephones.
Assistant U. S. Attorney Jo E. Lawless is prosecuting the case. The Louisville Metro Police Department Crimes Against Children Unit, Louisville Division of the FBI, and Clark County (Indiana) Sheriff’s Department, conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab.
Los Angeles Businessman Sentenced to 27 Months for Fraudulently Importing $30 Million of Chinese-Made TextilesRead the Press Release
San Diego, CA – United States Attorney Laura E. Duffy announced today that Los Angeles-based businessman Sunil Jiwat Mirwani was sentenced to 27 months in prison for evading customs duties on more than $30 million in Chinese-made wearing apparel. The sentence, handed down by U.S. District Judge Michael M. Anello, also required Mirwani to forfeit his interest in over $30,000 in cash, the contents of a Hong Kong-based bank account—plus an inventory of more than 220,000 pairs of blue jeans valued at more than $1 million. In addition, Judge Anello sentenced Mirwani’s corporation, M Trade, Inc., to five years of probation.
According to the evidence presented at a trial in June 2012, Mirwani hired a group of San Diego-based businessmen and logistics professionals to initiate shipments of Chinese-made merchandise from ports in China to the Port of Long Beach, California. When the goods arrived at Long Beach, Mirwani and his conspirators would ensure that the merchandise was classified as “in bond”—a special customs classification meaning that they had to be shipped directly to Mexico. However, rather than complete the shipment to Mexico as promised, Mirwani and his conspirators forged documents and falsified database entries, allowing them to send the merchandise to warehouses in the Los Angelesarea. Mirwani would then sell his jeans, shorts and skirts throughout the United States— effectively tax-free. In this way, Mirwani could sell more jeans at cheaper prices than his law-abiding competitors—including domestic American manufacturers of similar goods who, unlike Mirwani, could not rely on cheap Chinese labor to keep costs low.
Mirwani profited handsomely from the scheme, laundering his ill-gotten gains through a complex web of international wire transfers. According to evidence introduced at trial, Mirwani transmitted nearly $10 million from M Trade, Inc.’s bank account to the account of Mirvana International, a Hong Kong-based company that Mirwani shares with his Hong Kong-based twin brother. In addition, Mirwani transmitted similar sums to the Mirvana International account through a series of intermediary accounts in the United States and Mexico—and even sent money from M Trade Inc.’s account directly to accounts in mainland China. These international wire transfers served to hide Mirwani’s ill-gotten gains as well as to help fund future fraudulent shipments.
Mirwani’s sentencing was the culmination of a years-long effort by prosecutors and special agents. Following a lengthy wiretap investigation, a federal grand jury indicted Mirwani and M Trade, Inc. in June 2012. One year later, in June 2013, Mirwani and M Trade, Inc. were convicted after a one-week jury trial. Yet Mirwani and M Trade, Inc. were just two of 11 defendants charged in July 2012 as part of a larger conspiracy to fraudulently import foreign-made textiles, cigarettes, snack foods, and Salmonella-infected produce. In the past year, several other defendants have pled guilty and been sentenced for their role in the scheme, including Gerardo Chavez, the former President of the San Diego Customs Brokers Association, who is currently serving a 37-month prison sentence. Two defendants—Joel Erasmo Varela Gonzalez and Jose Porter—are fugitives and remain at large.
U.S. Attorney Duffy commended the efforts of special agents and prosecutors: “Thanks to special agents from the Department of Homeland Security and the IRS, working in conjunction with customs officers, a far-reaching commercial fraud conspiracy has been completely dismantled. This prosecution underscores our commitment to protecting the economic health of the United States and ensuring that no one exploits American and international markets for their personal gain.”
“Today’s sentencing serves as a reminder to those who attempt to exploit our commercial trade corridor in San Diego,” said Derek Benner, Special Agent in Charge for ICE’s Homeland Security Investigations in San Diego. “HSI is committed to using our expertise to investigate suspected customs fraud and dishonest business practices in the international trade arena. We will seek the highest penalty possible for those who game the system for their own illicit gain.”
Trial Exhibit 53 – Fraudulently Imported Blue Jeans
Trial Exhibit 52 – Summary of Mirwani’s Wire Transfers
DEFENDANTS Case Number: 12CR3137-MMASunil Jiwat Mirwani
M Trade, Inc.
SUMMARY OF CHARGES AND MAXIMUM PENALTIES
Los Angeles, CACount 1: Conspiracy to Defraud the United States – 18 U.S.C. § 371. Maximum penalties: 5 years in prison, 3 years of supervised release, $250,000 fine and a $100 special assessment
Counts 2 and 4: Entry of Goods by Means of False Statements – 18 U.S.C. § 542. Maximum penalties: 2 years in prison, 1 year of supervised release, $250,000 fine and a $100 special assessment
Count 57: Conspiracy to Launder Monetary Instruments – 18 U.S.C. § 1956(a)(2)(A) and (h). Maximum penalties: 20 years in prison, 3 years of supervised release, $500,000 fine (or a fine worth twice the amount of the laundered money) and a $100 special assessment.
INVESTIGATING AGENCIESImmigration and Customs Enforcement – Homeland Security Investigations
Internal Revenue Service – Criminal Investigations
United States Food and Drug Administration