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21 October 2013
Logan County Man Pleads Guilty to Fraud in Connection with Sales of Stolen Construction EqupmentRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Todd Allen Lamb, 39, of Bellefontaine, Ohio pleaded guilty in U.S. District Court to selling stolen construction equipment, including selling equipment to more than one buyer.
Mark D’Alessandro, Acting U.S. Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, and Logan County Sheriff Andrew J. Smith announced the pleas entered today before U.S. District Judge Michael H. Watson.
Lamb pleaded guilty to one count of unlawful interstate transportation of stolen motor vehicles, punishable by up to ten years in prison, and one count of wire fraud, which is punishable by up to 20 years in prison. Lamb was scheduled to go on trial today on the charges arising from the investigation.
According to court documents, Lamb conducted consignment sales and auctions, including sales over the Internet, of vehicles, equipment and other goods and merchandise under his companies named Almite Services and Almite Auctions. He also sold stolen motor vehicles through the businesses, including a Caterpillar backhoe that he knew was stolen, to a purchaser in Wyoming.
As part of Lamb’s wire fraud scheme, he sold a Mack truck to two different individuals. After he had delivered the truck to the first buyer and was unable to deliver the truck to the second buyer, he falsely told the second buyer that the truck had been stolen from the Port of Jacksonville, Florida. Afterward, Lamb told the second buyer he would refund the purchase price paid and sent to the buyer by an interstate facsimile message a copy of a refund check. The check was never sent to the second buyer.
The plea agreement calls for Lamb to pay $60,000 for the court to use to pay restitution to the victims. The court could order further restitution. Judge Watson will schedule a date for sentencing.
Two others have entered guilty pleas for their role in the scheme. Lamb’s wife, Karen Henry Lamb, pleaded guilty to a misdemeanor charge of making false statements relating to transfer of a vehicle title and was sentenced to six months’ probation in October 2012. Daniel J. Huffman, an employee of Lamb’s, pleaded guilty on June 28, 2011 to one count of conspiring with Lamb to transport vehicles stolen in Missouri, Indiana, and Pennsylvania to the Almite businesses in Logan County, Ohio. There, the manufacturers’ identification numbers would be altered for the vehicles to be sold to unsuspecting buyers. Huffman is awaiting sentencing.
Acting U.S. Attorney D’Alessandro commended the investigation by the FBI and Logan County Sheriff’s Office who were assisted by the Ohio State Highway Patrol, the National Insurance Crime Bureau, and the Bureau of Alcohol, Firearms, Tobacco and Explosives (ATF), as well as Assistant U.S. Attorneys Dale E. Williams Jr., and Deborah A. Sanders, who are prosecuting the case.
Leader of Avenues Gang Sentenced to 25 Years in Prison in Federal Racketeering Case for Murder and Ordering A KillingRead the Press Release
LOS ANGELES – The one-time top leader of the Avenues gang in Northeast Los Angeles and the lead defendant in a federal racketeering indictment who admitted murdering a rival gang member and ordered the killing of one his underlings was sentenced this morning to 25 years in federal prison.
Rudy Aguirre Jr., also known as “Lil Psycho,” 32, who is a high-ranking associate of the Mexican Mafia with strong family ties to the prison gang, was sentenced by United States District Judge George H. Wu.
Aguirre is one of the last defendants to be sentenced in relation to a 2009 racketeering indictment that charged 88 linked to the Avenues street gang in northeast Los Angeles (see: http://www.justice.gov/archive/usao/cac/Pressroom/pr2009/115.html). The wide-ranging racketeering case alleged a host of crimes, including the August 2008 murder of Los Angeles Sheriff’s Deputy Juan Escalante and the killings of several other victims. Most of the other defendants named in the indictment have previously been sentenced, receiving prison terms of up to 25 years. A co-defendant – Carlos Renterria, who admitted that he shot two rival gang members in the head at close range in an attempt to murder them, and that he plotted to murder a fellow Avenues gang member – also received a quarter-century prison term from Judge Wu earlier this month.
According to court documents, including his plea agreement, Aguirre was authorized by the Mexican Mafia to control the activities of the Avenues street gang on the street. As the leader of the Avenues, Aguirre would regularly meet with members of the Mexican Mafia at California penal institutions, where he would receive instructions and authorizations for certain violent crimes, and where he would relay information regarding the activities of the Avenues gang. Among other things, Aguirre was given the authority for designating individuals to collect extortionate “taxes” from drug dealers and others living and working in the area claimed by the Avenues gang. These “taxes” would then be funneled to the Mexican Mafia.
As part of his role in the Avenues, Aguirre shot and killed a rival gang member in 1999. Aguirre was charged with that murder in state court, but the charges against him were dismissed based on pre-trial rulings in that case. Aguirre subsequently was charged with that murder as part of federal case brought under the Racketeer Influenced and Corrupt Organizations Act (the federal RICO statute), and in July he pleaded guilty in the federal case, admitting that he fatally shot the victim in the Cyprus Park area of northeast Los Angeles.
Aguirre also admitted that he authorized the 2008 murder of an Avenues member because he and others believed that man was skimming money that he collected as “taxes” on behalf of the Avenues gang and the Mexican Mafia.
“No matter what steps criminal gangs like the Mexican Mafia and the Avenues use in attempts to control neighborhoods through intimidation and violence, we will ensure that the residents do not need to live their lives and raise their families in fear,” said United States Attorney André Birotte Jr. “I am proud that my office played an instrumental role in bringing justice to a predator responsible for two murders and overseeing a gang that caused so much harm to northeast Los Angeles.”
The federal investigation into the Avenues gang that led to the RICO case was conducted by the Los Angeles HIDTA (High Intensity Drug Trafficking Area) Task Force and the Los Angeles Police Department. The HIDTA group that conducted the investigation is made up of agents and officers from the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, IRS - Criminal Investigation, the Ontario Police Department, the Riverside Police Department, the San Bernardino County Sheriff’s Department and the Riverside County Sheriff’s Department.
The federal investigation into the Avenues began after the August 2, 2008 murder of Los Angeles Sheriff’s Deputy Juan Able Escalante, who was shot outside his Cypress Park home as he was getting ready to go to work at the Men’s Central Jail. Based on a collaborative effort by federal and local law enforcement, Deputy Escalante’s murderer, Carlos “Stoney” Velasquez, was sentenced to life in prison without the possibility of parole after he pleaded guilty to first-degree murder in state court. Three other Avenues gang members were also convicted in relation to the Escalante murder, and two others are pending trial in state court.
Release No. 13-123
Las Vegas Street Gang Member Sentenced to Life in Prison for Racketeering, Murder, Firearm, and Drug ChargesRead the Press Release
LAS VEGAS, Nev. A member of the Playboy Bloods street gang was sentenced today to life in prison for the retaliation murder of a man in November 2004 and the armed robbery of a Henderson, Nev. casino in 2002, announced U.S. Attorney Daniel G. Bogden of the District of Nevada and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
“We will use federal resources to prosecute street gang members who commit cowardly and horrible crimes in our community,” said U.S. Attorney Bogden. “I commend the many law enforcement officers who worked on this investigation and assisted us in ensuring a conviction in this case.”
Jacorey Taylor, aka “Mo-B,” 31, who was convicted by a jury in May 2013, was sentenced by U.S. District Judge Robert C. Jones. Taylor was convicted of engaging in a racketeering (RICO) conspiracy, committing violent crimes in aid of racketeering activity, using a firearm during a crime of violence, participating in a drug conspiracy, and possessing crack cocaine with the intent to distribute. He is the ninth gang member to be convicted out of 10 charged in a RICO indictment filed in 2008. The remaining defendant, Markette Tillman, 31, is awaiting trial.
Taylor and co-defendants Reginald Dunlap, aka “Bowlie,” and Steven Booth, aka “Stevie-P,” were convicted of participating in the murder of Billy Ray Thomas, who was shot multiple times in the back on the morning of Nov. 1, 2004, as he worked on a car in the parking lot of the Pecos Terrace Apartments while waiting to take his girlfriend to work. The defendants murdered Thomas due to their mistaken belief that Thomas was a member of a rival street gang. According to evidence presented at trial, two car loads of Playboy Bloods members and associates, including Taylor, Dunlap, Booth and others, drove through known Crip neighborhoods searching for rivals to retaliate against for the murder of Quaza Burns, a leader of the Playboy Bloods. The victim, Billy Ray Thomas, had no gang affiliation.
Evidence produced at trial also showed that on March 21, 2002, Taylor, armed with an AR-15 style assault rifle, and another man armed with an handgun entered the Klondike Casino in Henderson, forced their way behind the casino cage, and robbed the casino of over $7,000 in currency.
Dunlap and Booth pleaded guilty to racketeering conspiracy charges during Taylor’s trial and were each sentenced in April 2013 to 20 years in prison. There is no parole in the federal criminal justice system.
According to court documents and evidence produced at trial, the Bloods are a nationally known criminal street gang whose members engage in drug trafficking and acts of violence. The Playboy Bloods is a local “set” or affiliate of the Bloods, with local control and operation within the Las Vegas metropolitan area. Other Bloods sets within the Las Vegas metropolitan area include the Piru Bloods and the West Coast Bloods. A subset of the Playboy Bloods is the Full Throttle Clique, a group made up of Playboy Bloods members who engage in acts of violence, including murder. According to evidence presented at trial, Taylor, Dunlap, and Booth were all members of the “Full Throttle Clique” of the Playboy Bloods. Taylor, along with other Playboy Bloods enterprise members, operated drug houses in the Sherman Gardens Annex (also known as “The Jets”) and the surrounding areas.
Eight other defendants who have been convicted and sentenced, as follows:
- Steven Booth, aka “Stevie-P,” 27, pleaded guilty to RICO conspiracy and was sentenced to 20 years in prison on April 10, 2013
- Reginald Dunlap, aka “Bowlie,” 30, pleaded guilty to RICO conspiracy and was sentenced to 20 years in prison on April 9, 2013
- Demichael Burks, aka “Mikey P,” 29, pleaded guilty to RICO conspiracy and was sentenced to 6½ years in prison on Dec. 3, 2010
- Anthony Mabry, aka “Akim Slim,” 43, pleaded guilty to RICO conspiracy and was sentenced to 14 years in prison on Oct. 20, 2010
- Delvin Ward, aka “D-Luv,” 37, pleaded guilty to RICO conspiracy and was sentenced to 11 years in prison on Sept. 17, 2010
- Terrence Thomas, aka “Seven,” 40, pleaded guilty to drug conspiracy and was sentenced to 10 years in prison on June 16, 2010
- Sebastian Wigg, aka “Rock,” 36, pleaded guilty to drug conspiracy and was sentenced to five years in prison on March 29, 2010
- Fred Nix, aka “June P,” 36, pleaded guilty to drug conspiracy and was sentenced to five years in prison on March 29, 2010
Lafayette Man Sentenced to 60 Months in Prison for Receiving Child PornographyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that Mark Anthony Slade, 55, of Lafayette, was sentenced October 18, 2013 to 60 months in prison and 10 years of supervised release by U.S. District Court Judge Elizabeth E. Foote for knowingly receiving child pornography on his computer. He is also required to register as a sex offender. Slade pleaded guilty on April 17, 2013.
According to evidence presented at the guilty plea, an investigation of local and federal law enforcement authorities determined using computer surveillance software that the defendant was downloading child pornography. He used the internet file sharing program Limewire to download the files. After obtaining a warrant, authorities searched his residence Oct. 29, 2010, and seized the defendant’s computer. Slade was found to have downloaded 10 movies of child pornography. Some of the pornography depicted prepubescent children.
“Distributing and downloading child pornography is a serious crime that is not going to be ignored by this office,” Finley said. “These criminals perpetrate the victimization of children. We will continue to work with our federal, state and local partners to investigate and prosecute those who actively exploit children.”
The Lafayette Police Department and the Department of Homeland Security conducted the investigation. Assistant U.S. Attorney John Luke Walker prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. 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 U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp Tips may be submitted anonymously.
Kearney Man Sentenced to 20 Years for Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kearney, Mo., man was sentenced in federal court today for producing and possessing child pornography.
Austin D. Hurtado, 20, of Kearney, was sentenced by U.S. Chief District Judge Fernando J. Gaitan to 20 years in federal prison without parole.
Hurtado pleaded guilty on Feb. 8, 2013, to one count of producing child pornography and one count of possessing child pornography. According to his plea agreement, an FBI agent identified Hurtado’s computer (at his former residence in Smithville, Mo.) as sharing child pornography over the Internet. Using a peer-to-peer file-sharing program, the agent downloaded images of child pornography from Hurtado’s computer on Nov. 21 and 22, 2011.
Hurtado’s two laptop computers were seized by law enforcement officers and a forensic examiner found they contained numerous videos of an 8-year-old child in the shower. Hurtado’s face was visible in at least one of those videos. The forensic examiner also found the same child victim in additional numerous photos and videos of child pornography. Hurtado possessed 191 child pornography videos and more than 80 images of child pornography.
Under the terms of his plea agreement, Hurtado must pay a total of $10,000 in restitution to two of the victims portrayed in those images and movies, or $6,000 if he pays the restitution within 30 days.
This case was prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Jackson County Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
A Jackson County, Ill., man 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 17, 2013, Brian W. Davis, 31, of Desoto, entered a guilty plea to a one-count indictment charging conspiracy to manufacture methamphetamine. The offense occurred between June 2012 and November 1, 2012, in Jackson and Union Counties. Davis is currently being held without bond pending a January 30, 2014, sentencing hearing. At that time, he will face a penalty of up to 20 years in prison, a $1,000,000 fine, and 3 years of supervised release.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Insurance Agent Sentenced for Failing to Pay Withheld TaxesRead the Press Release
United States Attorney Deborah R. Gilg announced that John Stanley Clabaugh, Jr., 69, of Lincoln, Nebraska, was sentenced today in Lincoln, to 6 months in prison by United States District Judge John M. Gerrard, for failing to pay over withholding and FICA taxes. After prison, Clabaugh will serve 3 years of supervised release, with an additional 6 months of home confinement. Judge Gerrard also ordered that Clabaugh pay restitution in the amount of $135,109.92.
Clabaugh was the owner/operator of an insurance agency located in Crete, Nebraska. He and a secretary were the only full time employees, although there have been occasional part time employees. Clabaugh always withheld the federal income tax and FICA taxes from his and his employees’ paychecks, until 2001 when he stopped paying these withheld funds over to the IRS. These taxes are required to be reported and paid to the IRS on a quarterly basis, and Clabaugh also stopped filing the required quarterly forms. The total ‘trust fund’ taxes withheld from employee paychecks for the period of time covered by the indictment was $135,330.
"Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the Internal Revenue Service," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. “We are committed to pursuing those who violate the employment tax laws.”
This case was investigated by the Internal Revenue Service, Criminal Investigations Division.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.Henderson, Kentucky Man Sentenced to 97 Months in Prison for Multiple Bank RobberiesRead the Press Release
OWENSBORO, Ky. – A Henderson, Kentucky man was sentenced today, to 97 months in federal prison and ordered to pay restitution by Chief District Judge Joseph H. McKinley, Jr., for robbing six financial institutions and money laundering, announced David J. Hale, United States Attorney for the Western District of Kentucky.
James Allen Morris, age 54, plead guilty on July 26, 2013, to the federal superseding indictment that charged him with using force, violence, and intimidation in the robbery of six financial institutions, located in Henderson County, Kentucky, between July 23, 2010 and January 17, 2013.
Specifically, Morris admitted to robbing the following financial institutions: on January 17, 2013, Green River Credit Union, located at 902 Second Street, Henderson, Kentucky of $32,414; on August 22, 2012, Independence Bank, located at 2610 Zion road, Henderson, Kentucky of $10,400; on August 22, 2012, Bank of Henderson, 2003 Stapp Drive, Henderson, Kentucky of $11,559; on July 11, 2012, Green River Credit Union, 902 Second Street, Henderson, Kentucky of $1,596; on May 24, 2011, U.S. Bank, 501 Barrett Boulevard, Henderson, Kentucky of $6,000; and on July 23, 2010, Integra Bank, 9720 U.S. HWY 41 N., Poole, Kentucky of $2,770.
Further, Morris admitted to one count of money laundering for knowingly depositing the proceeds of bank robbery at three separate branches of the same bank located in Henderson, Kentucky. The separate deposits were designed to conceal the fact that the deposits were bank robbery proceeds taken from the Green River Credit Union.
Morris was ordered by Judge McKinley to pay restitution to the victims.
This case was prosecuted by Assistant United States Attorney Joshua Judd and was investigated by the Henderson Police Department and the Federal Bureau of Investigation.
Hazleton Man Pleads Guilty to Robbing Three BanksRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Shawn Luther Kelley, age 35, of Hazleton, Pennsylvania, pleaded guilty today to the robbery of three financial institutions before Senior United States District Court Judge A. Richard Caputo.
According to United States Attorney Peter J. Smith, Kelley appeared in Federal Court in Wilkes-Barre and admitted to committing the following robberies: the PNC BANK, located at 499 Susquehanna Boulevard, Hazle Township, Pennsylvania, on April 16, 2012; the CHOICE ONE COMMUNITY FEDERAL CREDIT UNION, located at 983 North Sherman Court, Hazleton, Pennsylvania, on April 20, 2012; and the CITIZENS BANK located at 40 West Broad Street, West Hazleton, Pennsylvania, on April 24, 2012. Kelley was arrested shortly after the Citizens Bank robbery on April 24, 2012.
The case was investigated by the Federal Bureau of Investigation, Pennsylvania State Police, Hazleton Police Department and West Hazleton Police Department. Prosecution has been assigned to Assistant United States Attorney John Gurganus.
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 60 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.
Frontman in Rock Band Sentenced to 7 Years in Federal Prison After Pleading Guilty in Multi-Million Dollar Loan Fraud CaseRead the Press Release
SANTA ANA, California – The singer in a Los Angeles-based rock band called Lights Over Paris was sentenced today to seven years in federal prison for submitting false documents to banks to fraudulently obtain millions of dollars in loans, money that he used to fund his musical project and his lavish lifestyle.
Robert Brandon Mawhinney, 30, of Anaheim, was sentenced earlier today by United States District Judge Cormac J. Carney.
Mawhinney pleaded guilty on April 22 to four counts of making false statements to federally insured banks and one count of money laundering. The very next day, according to prosecutors, Mawhinney made additional false statements to another financial institution in an attempt to obtain more credit – conduct that resulted in Judge Carney revoking his bond and remanding him into custody.
“For approximately three and a half years [Mawhinney] obtained and assisted others to obtain substantial loans from multiple banks through fraud,” prosecutors wrote in a sentencing memorandum filed in court. “In order to obtain and maintain the loans, [the] defendant made myriad false statements to the victim banks and presented numerous false documents, including fabricated financial statements and tax returns bearing the forged signatures of identity-theft victims. Even [the] defendant’s family members’ documents weren’t safe; for instance, [Mawhinney] used his grandfather’s Schwab account statements to create some of the fraudulent statements showing inflated balances that he gave to the victim banks.”
Mawhinney, who used the stage name Robb “TaLLLLL” University, obtained more than $11 million in credit after applying for loans by submitting phony brokerage statements that falsely showed that he had almost $8 million in assets. The phony statements were altered versions of real statements from brokerage accounts that actually contained less than $10,000. Mawhinney told bank officials that he needed the money to fund his music business and to purchase recording equipment. According to investigators, Mawhinney used the money from the loans to pay for travel, entertainment and a luxury tour bus that cost well over $750,000. The victim banks were Comerica, JP Morgan Chase, Zions Bank and Bank of America.
Mawhinney “used the millions of dollars that he fraudulently obtained for the selfish purpose of funding his fantasy of being a rock star,” according to the government’s sentencing memo. Judge Carney said today that Mawhinney’s motives for the crimes were “ego and greed.”
In a related case, Mawhinney helped two associates fraudulently obtain more than $1.7 in loans for their music business.
When Mawhinney defaulted on his loans, the victim banks sustained actual losses of over $8.4 million. When his associates defaulted on their loans, lending institutions suffered losses of approximately $1.75 million.
This case was investigated by the Federal Bureau of Investigation and IRS - Criminal Investigation.
Release No. 13-124
Frederick Business Man Pleads Guilty to Illicitly Selling Drug Paraphernalia and Tax FraudRead the Press Release
Baltimore, Maryland – Ronald J. Dalessandro, age 49, of Frederick, Maryland pleaded guilty today to two counts of selling drug paraphernalia and filing a false income tax return.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations.
According to his plea agreement, Dalessandro owned and operated The Needle Beast, a company through which he marketed and sold hypodermic needles and syringes on the internet to individual consumers around the country, who sought to enhance their physiques by self-administering anabolic steroids by injection. Dalessandro advised his customers on the most popular sizes ordered by his previous customers for self-administering anabolic steroids by injection. Dalessandro advertised his company on other websites focused on bodybuilding, anabolic steroids and other performance-enhancing drugs.Dalessandro displayed on his websites numerous disclaimers stating that the products he sold were “for medical, industrial, or vetrinary [sic] use only.” He used these disclaimers to avoid regulatory and law enforcement scrutiny, knowing that his customers intended to use the syringes and needles to inject themselves with body-enhancing substances, including anabolic steroids.
From the sale of needles and syringes through The Needle Beast website, Dalessandro received annual revenues of at least $68,432.93, $105,313.84 and $133.257.78 in 2006, 2007, and 2008, respectively. However, Dalessandro filed false income tax returns for these years which reported substantially less income than he earned, in that he did not report all of the income earned from the illicit sales of syringes and needles.
Dalessandro faces a maximum sentence of three years in prison followed by a year of supervised release for each of the offenses and a fine of $250,000. U.S. District Judge George L. Russell III scheduled sentencing for January 31, 2014 at 11:30 a.m.
United States Attorney Rod J. Rosenstein praised the IRS Criminal Investigation and FDA, Office of Criminal Investigations for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Robert K. Hur and Kelly O'Connell Hayes, who are prosecuting the case.Four East Bay Individuals Indicted and Arrested on Drug ChargesRead the Press Release
OAKLAND – Oscar Gaxiloa-Vicencio, Rafael Verduzco-Perez, Jesus Campos-Zaragoza, and Jorge Gonzalez-Herrera, made their initial appearances on October 16, 2013, in U.S. District Court following law enforcement action on Tuesday October 15, 2013, for various narcotics charges, announced United States Attorney Melinda Haag, Special Agent in Charge David J. Johnson of the Federal Bureau of Investigation’s San Francisco Division, Administrator Michele M. Leonhart of the Drug Enforcement Administration’s San Francisco Division, and Sheriff David Livingston of Contra Costa County.
According to the Indictment, Gaxiloa-Vicencio, 41, of Oakley, Verduzco-Perez, 38, of Antioch, Campos-Zaragoza, 36, of Concord, and Gonzalez-Herrera, 47, of Pittsburg, were charged with one or multiple counts of the following: conspiracy to possess with intent to distribute and to distribute methamphetamine, conspiracy to possess with intent to distribute cocaine, possession with intent to distribute and distribution of methamphetamine, or possession with intent to distribute and distribution of cocaine. Moises Soltero-Pelayo a/k/a “El Burro”, 25, of Brentwood, Calif., is currently incarcerated but charged under the same Indictment.
Aaron Wegner is the Assistant United States Attorney who is prosecuting the case with the assistance of Jeanne Cartensen. The prosecution is the result of a one year joint investigation by the Federal Bureau of Investigation, Drug Enforcement Administration, and Contra Costa County’s Office of the Sheriff, with assistance from the Antioch Police Department.
This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, which is a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
Please note, an indictment contains only allegations against an individual and, as with all defendants, name must be presumed innocent unless and until proven guilty.
(Gaxiola-Vicencio et al indictment )
Former Scranton Couple Sentenced for Conspiracy to Defraud the Estate of Deceased AuntRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Scranton couple convicted of conspiracy to defraud the estate of a deceased aunt was sentenced on October 17 by Senior U.S. District Court Judge Edwin M. Kosik.
Tamara Santarelli was sentenced to 70 months’ imprisonment and three years of supervised release. Victor J. Santarelli, III, was sentenced to 57 months’ imprisonment and three years of supervised release. Judge Kosik further ordered that both defendants jointly pay $74,390.55 in restitution.
According to United States Attorney Peter J. Smith, between May 2006 and August 2007, Victor J. Santarelli, III and Tamara Santarelli, both formerly of Scranton, engaged in a scheme to defraud the estate of Victor’s deceased aunt, Joanne Striminsky, including a plan to have previously named beneficiaries changed to themselves on multiple insurance contracts held by their aunt who passed away on January 4, 2007.
The defendants gained control of the victim by assuming Power of Attorney and Executor status under a will that they drafted. After assuming control, the Santarellis’ had the 82 year-old victim (who suffered from Alzheimers) involuntarily committed to a psychiatric unit of a local hospital and then, under the guise of Power of Attorney, went about taking all of her assets, including her house.When the victim died midway through the Santarellis’ scheme, they had her body buried in an unmarked grave.
Tamara and Victor Santarelli were indicted in February 2011. They were convicted in October 2011 of conspiring to defraud the estate of a deceased aunt, mail and wire fraud.
The investigation was conducted by the United States Postal Inspection Services, Philadelphia Division. The case was prosecuted by Assistant United States Attorney Michelle Olshefski.Former President of National Charity Arrested and Charged in $4 Million Fraud and Money Laundering SchemeRead the Press Release
PORTLAND, Ore. – Amanda Marshall, U. S. Attorney for the District of Oregon, today announced the arrest of Beaverton resident, Brian J. Brown, 56, former president of National Relief Charities, and the unsealing of an indictment charging Brown with conspiring to defraud National Relief Charities of $4 million and conspiring to commit money laundering violations with the proceeds of the fraud scheme. FBI and IRS agents arrested Brown Sunday morning, October 20th, at Portland International Airport as Brown returned to the United States from Thailand and Japan.
The indictment, returned under seal on October 9th, alleges that in late 2005, when Brown stepped down as the president of National Relief Charities, a national charity dedicated to improving the quality of life for Native Americans, he established a nonprofit company called Charity One, Inc., dba American Indian Education Endowment Fund. Brown then allegedly induced National Relief Charities to fund Charity One, Inc. with $4 million from 2006 through 2009, which Brown represented would be used to fund educational scholarships for Native Americans. Instead, Brown and unnamed coconspirators allegedly used the entire $4 million for their personal benefit.
The indictment further alleges that Brown established the principal office for Charity One, Inc. in Beaverton, Oregon and that National Relief Charities, which also maintained an office in Beaverton, mailed monthly checks for $100,000 or $200,000 from its offices in Beaverton, Oregon and in Sherman, Texas to Charity One, Inc. To facilitate the fraud scheme, Brown allegedly gave National Relief Charities false financial statements showing Charity One, Inc. was properly using the money.
Brown appeared today before U.S. Magistrate Judge Dennis J. Hubel and entered not guilty pleas to the charges. Magistrate Judge Hubel released Brown pending trial subject to release conditions including surrendering his passport to the federal Pretrial Services office and GPS monitoring. Brown’s trial is scheduled to begin on December 17, 2013, before U.S. District Judge Michael H. Simon.
“Anyone who defrauds a charity for their own personal gain should expect to be found, caught and prosecuted. This conduct harms the charity, its donors, and, most importantly, the intended recipients of the fraudulently diverted funds,” said U.S. Attorney Marshall.
This case is being investigated by the Federal Bureau of Investigation and the Criminal Investigation Division of the Internal Revenue Service. Assistant U.S. Attorney Seth D. Uram is handling the prosecution of the case.
Former Part-Owner of Litigation Funding Company Sentenced to 30 Months in Prison for Defrauding Business Partners in $869,492 Kickback ConspiracyRead the Press Release
NEWARK, N.J. – The former part-owner and underwriter for New York-based litigation funding company The Law Funder LLC was sentenced today to 30 months in prison for participating in a kickback scheme that defrauded his former business partners of $869,492, U.S. Attorney Paul J. Fishman announced.
Mathew Sheldon, 39, of New York, previously pleaded guilty before U.S. District Judge Dennis M. Cavanaugh to a superseding information charging him with conspiracy to commit wire fraud through the deprivation of honest services. Judge Cavanaugh imposed the sentence today in Newark federal court.
According to documents filed in this case and statements in court:
The Law Funder, which extends loans to plaintiffs in pending civil litigation, did business with Montclair Funding Group LLC (MFG) – at one time headquartered in Union City, N.J. – and its owner, Rory Donadio, 43, of New York. MFG was a broker between plaintiffs seeking advances against potential recoveries in pending litigation and private entities such as Law Funder. In exchange for a broker’s fee, MFG would, among other things, gather necessary information and documents in support of funding opportunities so Law Funder could evaluate whether to fund a case and for how much. Sheldon was a 25 percent owner in Law Funder and supervised the underwriting process for the company.
Sheldon admitted that from February 2005 through July 2009, he conspired with Donadio to design and execute a secret kickback scheme. Sheldon would offer certain of Law Funder’s investment opportunities to MFG in exchange for personally receiving a portion of each broker’s commission Law Funder paid MFG. Sheldon and Donadio agreed to conceal their fee-splitting arrangement from Law Funder and Sheldon’s three partners. The kickback scheme resulted in $869,492 in fraudulent payments to Sheldon, which were paid by wire transfer and other means.
Sheldon also admitted that he and Donadio concealed the scheme by using code, such as “Giants” or the letter “G” in records referring to related transactions. He acknowledged he regularly communicated with Donadio to identify the coded transactions and calculate the amount payable to Sheldon pursuant to the kickback scheme.
In addition to the prison term, Judge Cavanaugh sentenced Sheldon to three years of supervised release, ordered him to pay $869,492 in restitution and forfeit $869,492.Donadio also has pleaded guilty in connection with the scheme and awaits sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and inspectors of the U.S. Postal Inspection Service, Newark Division, under the direction of Maria L. Kelokates, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys Joseph B. Shumofsky, Mala Ahuja Harker and Jenny Kramer of the U.S. Attorney’s Office Economic Crimes Unit, and Evan Weitz of the Office’s Asset Forfeiture and Money Laundering Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
13-405
Defense counsel: Patrick N. McMahon Esq., Assistant Federal Public Defender, Newark
Former Orthodontist Convicted of Tax and Fraud ChargesRead the Press Release
Tried to Bilk $36 Million from the IRS
ALBANY, NEW YORK – A federal jury in Albany returned its verdict today convicting GLENN RICHARD UNGER (62, of Ogdensburg, NY) of the following offenses: obstructing and impeding the Internal Revenue Service (IRS); filing false claims against the United States; tax evasion; and passing fictitious obligations announced Richard S. Hartunian, United States Attorney, Northern District of New York, Toni M. Weirauch, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, New York Field Office, and Andrew W. Vale, Special Agent in Charge of the Federal Bureau of Investigation, Albany Division. Sentencing is scheduled for March 10, 2014 before Senior U.S. District Judge Thomas J. McAvoy.
U.S. Attorney Hartunian stated, “This trial detailed the callous contempt for state and federal authority that is the hallmark of the sovereign citizen movement. Like other sovereign citizens, GLENN RICHARD UNGER filed numerous false claims for refunds, tried to avoid paying his fair share of taxes, filed false documents with the Saratoga County Clerk’s office and attempted to pay a debt with a phony promissory note. We will continue to work with our law enforcement partners to aggressively investigate and prosecute anyone who refuses to honor every citizen’s duty to file honest tax returns and pay their taxes. I congratulate the IRS CID, the FBI, the New York State Police, and the Treasury Inspector General for Tax Administration for their diligence, professionalism, and hard work in bringing about a just and appropriate verdict.”
Special Agent-in-Charge Toni Weirauch said, “The prosecution of individuals who brazenly attempt to obstruct the Internal Revenue Service and prevent it from performing its mission is vital to maintaining public confidence in our tax system. This verdict conveys a strong message to those who contemplate abusing the tax system: They will be investigated, prosecuted and convicted. It also reassures the honest American taxpayer that the government is committed to making sure that everyone pays their fair share.”
SAC Vale stated, “The FBI is committed to vigorously investigate individuals like Mr. Unger who steal from the federal government for financial gain through schemes designed to avoid payment of taxes and other obligations owed the federal government. The victims of such schemes are the hardworking taxpayers in America, and we will continue to pursue these sovereign citizen movements, which result in damages for law-abiding citizens.”
The evidence at trial showed that between 2007 and 2011, UNGER filed 14 false tax returns claiming that he earned substantial income reported, had substantial withholdings on that income, and was entitled to $36 million in tax refunds. Despite numerous warning letters from the IRS that his returns were frivolous, he continued filing false tax returns.
In addition to obstructing the IRS by filing false and fraudulent claims for refund, the evidence at trial also showed that UNGER attempted to evade payment of taxes he owed to the IRS. During 2004 and 2005, UNGER earned income and failed to file tax returns reporting that income. The IRS assessed taxes for those two years and also assessed penalties for filing frivolous tax returns. After the IRS filed a tax lien against UNGER, UNGER attempted to file a false document with the Saratoga County Clerk’s office attempting to release the lien. Evidence at trial also showed that UNGER tried to pay off a debt to another orthodontist with a fictitious document purported to be worth $200,000.00.
As a result of the convictions, the defendant is facing a total statutory maximum term of imprisonment of 25 years and a maximum fine of $250,000.00
This prosecution resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigation, New York Field Office, the Federal Bureau of Investigation, Albany Field Office, the New York State Police, and the Treasury Inspector General for Tax Administration. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds (NDNY) and Jeffrey Bender (DOJ Tax Division).
Former Office Manager Pleads Guilty to Embezzling More Than $400,000 from Law Firm-Defendant Handled Payroll and Accounts Payable for Firm-Read the Press Release
WASHINGTON – Bernard Chung, 31, of Falls Church, Va., pled guilty on Oct. 7, 2013 to a federal wire fraud charge stemming from his embezzlement of more than $400,000 from the law firm where he worked as an office manager, announced U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Chung entered the plea in the U.S. District Court for the District of Columbia. The Honorable Thomas F. Hogan scheduled sentencing for Jan. 16, 2014. The charge carries a statutory maximum of 20 years in prison and financial penalties. The parties have agreed that, under federal sentencing guidelines, Chung faces a likely range of 30 to 37 months of incarceration and a fine of up to $60,000. He also will be required to pay restitution.
According to facts presented to the Court by Assistant U.S. Attorney Sherri L. Schornstein, Chung worked from 2009 until August 2012 as the office manager for North Star Intellectual Property Law, LLC, a law firm that is based in downtown Washington, D.C. His duties included setting up the firm’s computer systems and network, creating a paperless environment, payroll, and bill payments.
Beginning in February 2010, and continuing until July 2012, Chung devised a scheme to defraud the firm, ultimately embezzling $407,062. He generated the money by issuing excessive salary payments to himself, inflating his regular paychecks, and other means. He was able to hide his activities in large part because his employment position authorized him to handle the payroll and accounts payable, creating a mechanism that he could exploit for his own financial benefit.
In announcing the plea, U.S. Attorney Machen and Assistant Director in Charge Parlave commended the work of the FBI’s Washington Field Office, which investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Donna Galindo and Assistant U.S. Attorney Sherri L. Schornstein, who is investigating and prosecuting the case.
13-357Former Coca-Cola Employee Charged with FraudRead the Press Release
ATLANTA - Jeffrey David Shamp has been arraigned on federal charges of fraud and money laundering. He was indicted by a federal grand jury on Oct. 15, 2013.
“This defendant is charged with using corporate American Express gift checks to pay personal expenses,” said United States Attorney Sally Quillian Yates. “We will continue to ferret out those who abuse positions of trust for personal gain.”
“The United States Secret Service and our law enforcement partners work tirelessly to thoroughly investigate cases like this. We will continue to take an aggressive approach towards those who violate the faith and trust of businesses to further their financial crime activity,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
“Mr. Shamp used deceit and fraud, in the misuse of a marketing tool intended to promote the good name of Coca-Cola, for his own personal benefit,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation. “IRS-CI is committed to unraveling financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money.”
According to United States Attorney Yates, the charges, and other information presented in court: Jeffrey Shamp worked for The Coca-Cola Company from approximately July 2002, to November 2011, most recently as a Senior National Account Executive based in Massachusetts. In his position, Shamp was authorized to order American Express (“Amex”) gift checks to be used as part of a sales incentive program for Coca-Cola’s customers. From approximately November 2005, through September 2011, Shamp fraudulently obtained Amex gift checks under the false pretense that the checks would be used as part of Coca-Cola’s sales incentive program, when in fact Shamp used them to pay for over $400,000 in personal expenses.
Shamp, 40, of Cincinnati, Ohio, was arraigned today before United States Magistrate Judge E. Clayton Scofield III.
The wire fraud charges in this case each carry a maximum sentence of 20 years in prison and a fine of up to $250,000. The money laundering charges each carry a maximum sentence of 10 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the United States Secret Service and Internal Revenue Service Criminal Investigation.
Assistant United States Attorney Steven D. Grimberg and Intern Ryan Freeman are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former Attorney and Youth Baseball Coach Sentenced to 25 Years in Prison for Child Pornography OffensesRead the Press Release
A family law attorney who previously practiced in Kent, Washington was sentenced today to 25 years in prison and lifetime supervised release for Production of Child Pornography/ Sexual Exploitation of Children, one count of Receipt of Material Constituting or Containing Child Pornography, and one count of Possession of Child Pornography, announced U.S. Attorney Jenny A. Durkan. DAVID S. ENGLE, 50, of Maple Valley, Washington was arrested in November 2012. ENGLE, who both volunteered in and ran a business involving youth baseball, has been incarcerated since his arrest. At sentencing U.S. District Judge James L. Robart took issue with a defense claim that these were not violent attacks saying, ”Molestation is violence… Sure, he didn’t threaten to break an arm… but this is violence, let’s be very clear on that.”
“This is a heart-wrenching betrayal of trust of the victims and the community,” said U.S. Attorney Jenny A. Durkan. “While nothing can undo this damage, the long sentence will protect the community and sends a strong message about the horrendous acts. Our advocates are resolved to do everything possible to support the victims as they deal with the horrific abuse.”
According to records filed in the case, ENGLE came to the attention of law enforcement following the investigation of an international movie production company that operated a website offering DVDs and streaming videos for sale. The materials depicted young boys in sexually explicit activity. Between 2005 and 2011, ENGLE purchased 184 different items from the website. The international movie production company was put out of business when agents seized its inventory and records. The company and the owners of the company are being prosecuted for child exploitation offenses, including the production and distribution of child pornography.
After law enforcement executed a search warrant on ENGLE’s home and storage locker in November 2012, they discovered more than 500 videos of ENGLE sexually molesting a young boy under the age of 16. Law enforcement later discovered additional evidence of ENGLE sexually molesting another young boy, also under the age of 16. ENGLE is being separately prosecuted for those offenses by the King County Prosecutor’s Office. Following forensic examination of a number of computers, DVDs, thumb drives, and floppy disks, investigators determined that ENGLE was in possession of tens of thousands of images of child pornography, and thousands of videos of child pornography.
In asking for a 30 year prison sentence, prosecutors noted that ENGLE betrayed the trust put in him by the community. “To then learn that Defendant had been charged with producing child pornography and molesting children added additional layers of anguish that can never be ameliorated. To the mothers of Minor Victim 1 and Minor Victim 2, to all of the parents who put their trust in Defendant, to all of the children who called him “Coach,” to all of those involved in youth baseball for the pure enjoyment of the sport, and to the larger community, Defendant’s criminal conduct is especially monstrous,” prosecutors wrote in their sentencing memo.
The case was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistant United States Attorney Marci Ellsworth.
Financial Consultant Pleads Guilty to FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that August John Stile, Jr., age 49, of Hughestown, Pennsylvania, pleaded guilty today to the defrauding investors of approximately $310,000 before United States District Court Judge Malachy E. Mannion.
According to United States Attorney Peter J. Smith, Stile appeared in Federal Court in Scranton, Pennsylvania, and admitted to devising a scheme to defraud private investors of money by fraudulently offering short term investment opportunities based upon a promise of a return of the investment with substantial interest in less than 90 days.
The Criminal Information alleges that Stile was the purported Vice President of JFC Group and the President of Stile Consulting. JFC Group had an office in Dickson City, Pennsylvania, and Stile Consulting had an office in Exeter, Pennsylvania. Stile admitted today in federal court that rather than investing the money he received from investors to fund projects as promised, Stile utilized the funds for his own purposes.
The case was investigated by the Federal Bureau of Investigation. Prosecution has been assigned to Assistant United States Attorney John Gurganus.
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 10 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.
Felon in Possession of Firearm Gets More Than Eight Years in PrisonRead the Press Release
McALLEN, Texas – Four-time convicted felon Aurelio Perez-Aleman, of Roma, has been ordered to prison for possessing a firearm, United States Attorney Kenneth Magidson announced today. Perez-Aleman, 37, pleaded guilty May 30, 2013.
Today, U.S. District Judge Randy Cane sentenced Perez-Aleman to 100 months imprisonment to be followed by a three-year-term of supervised release. The sentence was enhanced due to his prior violent felonies and the high capacity magazine involved.
On Sep. 7, 2013, Perez-Aleman was discovered in his vehicle near the Rio Grande River by Border Patrol (BP) agents after illegal aliens were spotted nearby. After giving the BP agents consent to search his vehicle, a WASR 10, 7.62 mm rifle was discovered inside his vehicle. Records indicated he was a previously convicted felon, thereby prohibiting him from possessing a firearm. He has two prior felony convictions for possession of marijuana as well as aggravated robbery and assault on a public servant.
The investigation revealed Perez-Aleman had been waiting for an individual to cross the Rio Grande River so Perez-Aleman could give him the firearm.
Aurelio Perez-Aleman has been in custody where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and BP. The case was prosecuted by Assistant United States Attorney Steven Schammel.
Employee Charged with Defrauding Chester County-Based EmployerRead the Press Release
PHILADELPHIA - Christopher Stehm, 51, of Mason, Ohio, was charged today by information with defrauding his employer, Berwyn-based Ametek, Inc., of at least $659,731, announced United States Attorney Zane David Memeger. According to the information, Stehm was the chief accounting officer at two different offices of the company when he submitted phony claims for expense reimbursements, many of which he supported with doctored receipts. Stehm is charged with two counts of wire fraud and two counts of filing false tax returns.
Stehm was the controller for Ametek’s Chandler division, in Broken Arrow, Oklahoma, from about January 2006 through March 2010. In April 2010, Ametek promoted Stehm to be the vice president of finance at its HCC division, in Cincinnati, Ohio, and Stehm held that position until November 2012. In both positions, Stehm was his office’s chief accounting officer. According to the information, throughout his employment at Ametek, Stehm used a variety of methods to obtain “reimbursements” for expenses that he either never incurred or that were wholly personal in nature. These methods allegedly included cutting off the tops of receipts or “whiting out” portions of receipts that Stehm submitted with his expense reimbursement claims to make them appear to be business-related. Stehm also allegedly used copies of the same receipts to support multiple expense reimbursement claims.
Ametek is a publicly-traded company (symbol AME on the New York Stock Exchange), which manufactures electronic instruments and electromechanical devices for sale in numerous countries. The company is headquartered in Berwyn, Pennsylvania, but it has offices in numerous locations in the U.S. and overseas.
The information alleges that among the numerous personal expenses Stehm submitted for reimbursement from Ametek were repairs to his personal cars, private meals, and the purchase of a family dog. Stehm also allegedly hid his illegal income from the Internal Revenue Service and claimed baseless deductions when he filed his tax forms for 2010 and 2011, thereby under-reporting his annual income by more than $100,000 in each of those tax years.
If convicted of all charges, the defendant faces a maximum possible sentence of 46 years in prison, three years of supervised release, a $1 million fine, and a $400 special assessment.
The case was investigated by the FBI and the Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525East Haven Police Officers Found Guilty of Federal Civil Rights OffensesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, today announced that a federal jury in Hartford has found East Haven Police Officer DENNIS SPAULDING, 30, and former East Haven Police Officer DAVID CARI, 36, guilty of conspiring to violate, and violating, the civil rights of members of the East Haven community. The trial before U.S. District Judge Alvin W. Thompson began on September 23 and the jury returned its verdict today.
“This prosecution and the jury’s swift and unambiguous verdict should send a very strong message that there is no place in law enforcement for anyone who abuses power or victimizes defenseless individuals,” stated Acting U.S. Attorney Daly. “No one is above the law, and no one is beneath the law’s protection. The illegal behavior detailed during the course of this trial chips away at the public’s trust in all members of law enforcement, the vast majority of whom serve honorably and bravely each and every day. I want to thank the FBI agents who have tirelessly investigated this matter, and our prosecution team for achieving this successful result under especially difficult circumstances. Since these charges were announced, the East Haven Police Department, under the direction of the Justice Department, has made great strides to purge itself of unlawful and unethical behavior within it ranks and change the way it does business. It is our expectation that new policing policies will ensure that this kind of conduct is part of East Haven’s past, not its future.”
“As Mr. Spaulding and Mr. Cari learned today, no one is above the law,” stated FBI Assistant Director-in-Charge Venizelos. “Law enforcement takes an oath to protect and serve our communities. We are, and rightfully should be, held to a higher standard. It is unconscionable when law enforcement, anywhere, breaks that vow. Today, these defendants find themselves guilty of violating the very rights for which this country was founded. There is no excuse for law enforcement who betrays the public’s trust.”
According to the evidence presented during the trial, from approximately 2007 through 2011, SPAULDING and CARI together with other East Haven Officers conspired to injure, threaten, and intimidate various members of the East Haven community in violation of their Constitutional rights. The defendant officers maintained and perpetuated an environment where the use of unreasonable force and unreasonable searches and seizures was tolerated and encouraged. Defendants SPAULDING and CARI engaged in unlawful arrests and searches, including the baseless arrests of a Catholic priest and several Latinos who lived or worked in the community. Additionally, SPAULDING used excessive force during arrests when victims were unarmed, neither resisting nor interfering with the police. Certain victims were particularly vulnerable because they were undocumented aliens and thus unlikely to raise objection to the abuse.
The evidence at trial further revealed that SPAULDING intimidated, harassed and humiliated members of the Latino community and their advocates, and conducted unreasonable and illegal searches at Latino-owned businesses. Trial testimony established that in November 2008, SPAULDING used excessive force against an individual in the parking lot of a Latino-owned restaurant and bar. SPAULDING then arrested the individual under false pretenses to cover-up the assault and prepared a false report to justify the false arrest. Later, in January 2009 in the same parking lot, SPAULDING and another officer arrested three individuals under false pretenses. SPAULDING also prepared a false report to justify these arrests.
In February 2009, the defendant officers illegally searched a vehicle parked outside of a Latino-owned grocery store. Inside the store, CARI then arrested a Catholic priest, who is also an advocate for Latinos, on false pretenses. The officers then conducted an illegal search of the back room of the store in an effort to unlawfully seize the store’s video recording equipment. In the days following the arrest, CARI drafted various false versions of an arrest report to cover up the false arrest of the religious leader.
The jury found SPAULDING and CARI guilty of one count of conspiracy against rights, which carries a maximum term of imprisonment of 10 years and a fine of up to $250,000. In addition, SPAULDING was found guilty of one count of use of unreasonable force by a law enforcement officer, which carries a maximum term of imprisonment of 10 years and a fine of up to $250,000. SPAULDING was found guilty of two counts and CARI of one count of deprivation of rights for making arrests without probable cause. Each of these counts carries a maximum term of imprisonment of one year and a fine of up to $100,000. Finally, SPAULDING was found guilty of two counts and CARI of one count of obstruction of a federal investigation for preparing false reports to justify the false arrests. Each of these counts carries a maximum term of imprisonment of 20 years and a fine of up to $250,000.
Judge Thompson has scheduled sentencing for January 21, 2014.
Two other former members of the East Haven Police Department have been convicted as a result of the investigation. On September 21, 2012, Sergeant John Miller pleaded guilty to one count of violating an individual's civil rights by using unreasonable force during the course of an arrest. On October 23, 2012, Officer Jason Zullo pleaded guilty to one count of obstruction stemming from his filing of a false police report in order to prevent a possible excessive force investigation.
Miller and Zullo await sentencing.
This matter is being investigated by the Civil Rights Squad of the FBI’s New York Field Office. The case is being prosecuted by Assistant U.S. Attorney Krishna R. Patel and Senior Litigation Counsel Richard J. Schechter.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]District Man Pleads Guilty to Charges in 2012 Killing of His Cousin-Victim Died of Head Injuries Suffered in Attack-Read the Press Release
WASHINGTON – Arvel Wills, 24, of Washington, D.C., pled guilty on Oct. 10, 2013 to charges stemming from the killing of his cousin, Dwayne Wills, last year in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Wills pled guilty in the Superior Court of the District of Columbia to involuntary manslaughter and a firearms offense. The Honorable Ronna L. Beck scheduled sentencing for Dec. 18, 2013.
According to the government’s evidence, on May 26, 2012, at about 4 a.m., Wills and his cousin, Dwayne Wills, 25, engaged in a verbal dispute that turned into a physical altercation at Abbey Place and L Street NE. They had been drinking alcohol at the time of the incident.
Dwayne Wills took two punches at the defendant. Arvel Wills picked up his cousin by his neck and leg, held him over his head, and then forcefully slammed his head into a concrete street, causing a skull fracture. Dwayne Wills was unconscious, but was revived and taken to Washington Hospital Center, where he claimed that he had fallen and hurt himself. He lapsed into a coma. On June 4, 2012, he died as a result of head injuries suffered on May 26, 2012.
The District of Columbia medical examiner=s office ruled the case a homicide. The evidence indicates that the cause of death was blunt impact trauma to the head.
Wills was arrested on Sept. 27, 2012. At the time of his arrest, he possessed a 9 mm Ruger, which had an extended magazine clip with 13 rounds of ammunition and was capable of holding 50 rounds. He has been in custody ever since.
In announcing the plea, U.S. Attorney Machen expressed appreciation to the detectives, officers and others who investigated the case from the Metropolitan Police Department. He also thanked the U.S. Marshals Service for its assistance on the case. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigators Stephen Cohen, Tommy Miller, Melissa Matthews, Durand Odom, Nelson Rhone, Juan Juarez, Matt Kutz, and interns Ian Irlander and Brian Edgerton; Victim/Witness Advocate Marcia Rinker, and Paralegal Specialist Kelley Blakeney. Finally, he commended Assistant U.S. Attorney Cynthia G. Wright who prosecuted the case.
13-358Cutler Man Pleads Guilty to Being Part of Methamphetamine ConspiracyRead the Press Release
On October 17, 2013, Virgil L. Easton, 35, of Cutler, Illinois, pled guilty in United States District Court in Benton to an indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
The offense occurred between January 2011, and January 2013, in Perry, Jackson, and Randolph Counties. Evidence at the plea hearing established that, during the conspiracy, Easton obtained and provided pseudoephedrine to others for use in the manufacture of methamphetamine. Easton is currently being held without bond pending his January 30, 2014, sentencing hearing. Easton faces up to 20 years in prison, 3 years of supervised release, and a fine of up to $1,000,000. Ten co-defendants have previously been sentenced for their role in the methamphetamine conspiracy. Three co-defendants have pled guilty and are awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Randolph County Sheriff’s Office, Perry County Sheriff’s Office, Percy Police Department, Murphysboro Police Department, Sparta Police Department, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
18 October 2013
Youngstown Woman Charged Wtih Assaulting U.S. MarshalRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a federal grand jury returned a one-count indictment charging Rochelle Johnson, age 41, of Youngstown, Ohio, with assaulting, resisting, opposing, impeding and interfering with a Deputy U.S. Marshal while engaged in official duty.
The indictment charges that on or about October 2, 2013, Johnson assaulted a Deputy U.S. Marshal while he was engaged in official duty.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the United States Marshals Service and the Northern Ohio Violent Fugitive Task Force. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment in only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Woman Sentenced to 72 Months in Federal Prison in Child Sex-Trafficking CaseRead the Press Release
FORT WORTH, Texas — Brittanie S. Brattain, 22, was sentenced on Tuesday, October 15, 2013, by U.S. District Judge Terry R. Means, to 72 months in federal prison, following her guilty plea in June 2013 to one count of conspiracy to commit sex trafficking of a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Brattain’s co-defendant, Deundrea R. Miller, 27, also pleaded guilty in June to the same offense and is scheduled to be sentenced on November 12, 2013.
According to documents filed in Brattain’s case, prior to September 2012, Brattain had a relationship with Miller. In late September or early October 2012, Brattain and Miller met Jane Doe. They agreed to take pictures of Jane Doe to post advertisements for “dates” on Back Page that would be used for commercial sex acts. Brattain and Miller used a cell phone to take the pictures and post the advertisements.
Some of the commercial sex acts involving Jane Doe occurred in motels in East Fort Worth. After the commercial sex acts, Jane Doe would give the money she received to Miller. Miller and Brattain harbored and maintained Jane Doe while they stayed in these motels.
In January 2013, Miller and Brattain rented a duplex in Fort Worth where commercial sex acts involving Jane Doe also occurred. Also in January 2013, Miller and Brattain posted “escort” advertisements involving Jane Doe. While Jane Doe stayed with Miller and Brattain, Miller and Brattain received financial benefit from her participation in commercial sex acts, all in reckless disregard that Jane Doe was under age 18.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and other members of the North Texas Anti-Trafficking Team, including the Arlington, Fort Worth and Dallas Police Departments, the Texas Department of Public Safety and the Texas Attorney General’s Office. Assistant U.S. Attorney Aisha Saleem prosecuted.
West Frankfort, Illinois, Man Sentenced for Child Pornography OffensesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on October 17, 2013, Devere L. Abair, Jr., 48, of West Frankfort, Illinois, was sentenced in federal district court for accessing child pornography images online and for failure to register as a convicted sex offender. Abair had earlier pled guilty to the charges on July 8, 2013. The Court sentenced Abair to 12 years in prison, a $400 fine and 10 years of closely monitored supervision after release from prison.
“Protecting our children from those who would prey upon them is my duty and my passion.” noted United States Attorney Wigginton. “Accessing these images victimizes children again and again. Such despicable behavior must be stopped.”
The evidence at sentencing established that Abair had previously been convicted in Indiana for sex offenses involving children. That conviction required Abair to register as a sex offender and notify authorities when he changed residences. Thereafter, Abair moved to West Frankfort, Illinois, and failed to notify authorities in Indiana or Illinois that he had moved. While investigating that offense, authorities discovered that Abair had been accessing child pornography from three computers at his West Frankfort residence.
The investigation in this case was conducted by the Secret Service Southern Illinois Cyber Crimes Task Force, The United States Marshals Service, and the Franklin County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Thomas E. Leggans.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources".
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Raymond Belsan, 33, of Goshen, Indiana, pled guilty before District Judge Robert Miller, Jr. to the felony offense of distribution of child pornography.Sentencing has been set for 1/22/14.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation and the United States Secret Service.This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
Kendra Winston, 24, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of being an accessory after the fact to bank robbery.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 1/16/14.This charge was filed as a result of an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Jesse Barrett.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Dayman Olivares, 34, of Bremen, Indiana, was sentenced by District Judge Robert Miller, Jr. to 70 months imprisonment and 4 years of supervised release after pleading guilty to the felony offense of possession with the intent to distribute cocaine.According to documents filed in this case, Olivares possessed cocaine and heroin which he intended to sell to a confidential informant.He arrived at the site of the drug deal with his girlfriend and two young children in the car.This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney William Grimmer.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS:
Dedrick Bufkin, 20, of Merrillville, Indiana, a defendant in the case US v Toney et al., was sentenced by District Judge Joseph Van Bokkelen to 60 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of brandishing a firearm during a crime of violence.According to documents filed in this case, Diamond Toney established on online relationship with a victim through a dating website.Toney and Bufkin, armed with a gun, met the victim at an arranged site, tied him up with string and duct tape and ordered him into the trunk of his own vehicle.Toney and Bufkin took money, a cell phone and wallet from the victim and held him captive in the trunk for approximately 5 hours before letting him go.This case was the result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Lizbeth Correa, 35, of Wawaka, Indiana, a defendant in the case US v Madrigal et al., pled guilty before Magistrate Judge Roger Cosbey to the felony offense of profiting from managing and controlling a building for the purpose of storing and distributing methamphetamine. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the IMAGE Task Force, the Noble County Prosecuting Attorney’s Office, the Indiana State Police, the Ligonier Police Department and the Fort Wayne Police Department.This case is being prosecuted by Assistant United States Attorney Anthony Geller.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Virginia Man Sentenced to 2 ½ Years in Prison for Possession of Child PornographyRead the Press Release
WASHINGTON – Richard Mark Abbott, 62, of Chesterfield, Va., was sentenced today to a 2 ½-year prison term on a federal charge of possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Abbott pled guilty to the charge in July 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable John D. Bates. Upon completion of his prison term, Abbott will be placed on 10 years of supervised release.
According to the government's evidence, on March 15, 2013, Abbott contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site frequented by individuals with a sexual interest in children. Over the next few days, Abbott engaged in online e-mail and instant messaging with the undercover officer, whom Abbott believed was the father of an under-aged girl.
During the course of their communications, Abbott sent the undercover officer ten images of child pornography. On May 2, 2013, Abbott was arrested at his residence in Virginia. Pursuant to a search warrant for the residence, law enforcement recovered various electronic devices including two computers and various external storage devices. After a forensic review of those items, law enforcement recovered over 600 images of child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
13-353Vietnamese National Charged in Widespread International Scheme to Steal and Sell Hundreds of Thousands of U.s. Persons’ Personally Identifiable InformationRead the Press Release
A Vietnamese national has been indicted in the District of New Hampshire for allegedly participating in an international scheme to steal and sell hundreds of thousands of Americans’ personally identifiable information (PII) through various underground websites that he operated.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney John P. Kacavas of the District of New Hampshire, and Resident Agent in Charge Holly Fraumeni of the U.S. Secret Service’s Manchester Field Office made the announcement after the indictment was unsealed.
Hieu Minh Ngo, 24, a Vietnamese national, was charged in a 15-count indictment filed under seal in November 2012, charging him with conspiracy to commit wire fraud, substantive wire fraud, conspiracy to commit identity fraud, substantive identity fraud, aggravated identity theft, conspiracy to commit access device fraud, and substantive access device fraud. Ngo was arrested upon his entry into the United States in February 2013. The statutory maximum penalties are five years on the identity fraud and identity fraud conspiracy counts, two years each on the aggravated identity theft counts, 20 years on the wire fraud count and wire fraud conspiracy counts, 10 years on the substantive access device fraud count and five years on the conspiracy to commit access device fraud count.
According to the indictment, from 2007 through 2012, Ngo and other members of the conspiracy acquired, offered for sale, sold, and/or transferred to others packages of PII for more than 500,000 individuals. These packages, known as “fullz,” typically included a person’s name, date of birth, social security number, bank account number and bank routing number. During this same time, Ngo and other members of the conspiracy acquired, offered for sale, sold, and/or transferred to others stolen payment card data, which typically included the victim account holder’s payment card number, expiration date, card verification value number, account holder name, account holder address and phone number.
The indictment alleges that Ngo operated one or more online marketplaces for various carding activities, known as carder forums, where he stored and offered for sale “fullz” and other PII, including “fullz” of individuals located in the District of New Hampshire. On two carder forums, Ngo and his co-conspirators offered buyers the option to obtain a specified quantity of “fullz” or to submit a query of a particular name to obtain that person’s associated PII. Ngo and his co-conspirators allegedly offered several categories of PII, depending on how recently the data had been acquired, and charged higher prices for more recent data. Ngo allegedly made arrangements with others who, after paying a fee, could access and then and re-sell the stolen payment card data, “fullz” and other PII. Ngo and his co-conspirators created one or more accounts with a digital currency service and used those accounts to receive funds for the stolen payment card data, “fullz” and other PII that they sold.
The case was investigated by the U.S. Secret Service and is being prosecuted by Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Announces Indictment of Evansville Insurance Agent for Wire Fraud SchemeRead the Press Release
EVANSVILLE – Joseph H. Hogsett, the United States Attorney, announced today that Danny Lee Beavin, age 39, of Evansville, has been indicted by a federal grand jury sitting in Evansville. Beavin faces six counts of wire fraud and one count of conspiracy to commit wire fraud, following an investigation by the Evansville Police Department and United States Secret Service.
“This indictment alleges a scheme that was fueled by greed and a culture of corruption,” Hogsett said. “The U.S. Attorney’s Office remains unwavering in our commitment to investigate and prosecute anyone who attempts to enrich themselves at the expense of hard-working Hoosiers and our business community.”
The indictment alleges that between April 1, 2011 and December 31, 2011, Beavin was an insurance agent authorized to sell insurance annuity policies. Beavin allegedly devised a scheme in order to defraud an insurance company and receive commissions he was not entitled to receive. The scheme involved Beavin and others submitting fraudulent insurance applications that contained false birth dates. Investigators allege that these fraudulent policies were submitted on at least six different occasions.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who is prosecuting the case for the government, Beavin faces a maximum of twenty years in prison and a $250,000 fine for each of the six counts of wire fraud. The conspiracy count has a maximum penalty of five years in prison.
An Indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
U.S. Attorney Barry Grissom to Speak in Parsons Oct. 24Read the Press Release
WICHITA, KAN. – U.S. Attorney Barry Grissom will speak in Parsons on Thursday, Oct. 24.
Grissom will be guest speaker at the noon luncheon of the Parsons Rotary Club. The club is meeting at the Chinese Chef, 900 N. 16th Street in Parsons. His topic will be “Federal Law Enforcement: National security, public safety and civil rights.”
Grissom leads a staff of about 50 assistant U.S. Attorneys and 50 support personnel who work in offices in Kansas City, Kan., Topeka and Wichita. He was appointed by President Barack Obama in 2010.
For more information, call Jim Cross, public information officer, at 316-269-6552.
Two Men Sentenced to Federal Prison for Their Roles in International High-Yield Investment SchemeRead the Press Release
Octuber 18, 2013BOSTON – Two men were sentenced today for their roles in a scheme to defraud investors from across the country out of millions of dollars.
Alan Gilner, 78, of New Smyrna Beach, Fla., and Randi A. Bochinski, 49, of British Columbia, Canada, were sentenced by United States District Court Judge Douglas P. Woodlock. Gilner was sentenced to 84 months in prison, three years of supervised release, and ordered to pay $5.2 million in restitution. In June 2012, Gilner was convicted of conspiracy, mail fraud, wire fraud and money laundering following a seven-day jury trial. Bochinski was sentenced to 72 months in prison; three years of supervised release, and ordered to pay $5.2 million in restitution. In May 2013, Bochinski pleaded guilty to wire fraud, mail fraud, and money laundering for his role in the scheme.
Gilner and Bochinski promoted a series of purported high-yield investment programs to investors throughout the United States, including friends and acquaintances of Gilner in Florida, as well as individuals in Massachusetts, Pennsylvania, Nevada, and Virginia. The men promised extraordinary rates of return on the investments within a short period of time, and also pledged that investors’ principal would be insured or maintained in an escrow account. Once investors sent their money to either Gilner or Bochinski, however, the defendants diverted the funds for other uses, including their own personal use.
In order to lull investors into believing that their funds had been invested as promised, Bochinski and Gilner typically made at least some purported “return” payments using money from other investors. In some instances, Bochinski and Gilner attempted to return principal to frustrated investors by using counterfeit checks.
Troy Man Pleads Guilty to Illegal Possession of A FirearmRead the Press Release
TROY, NEW YORK – RICHARD S. ELY, 27, of Troy, New York, entered a guilty plea yesterday before the Honorable Mae A. D’Agostino to an indictment charging him with being a convicted felon in possession of a firearm announced United States Attorney Richard S. Hartunian, Joseph Anarumo, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, and Police Chief Steven Krokoff of the Albany Police Department. The defendant is facing a maximum sentence of ten years in prison, a term of supervised release of up to three years, and a maximum fine of $250,000. ELY is being detained pending his sentencing which is scheduled for February 20, 2014.
According to the plea agreement: On June 7, 2012, a search was conducted at ELY’s residence in Troy, New York. The search of ELY’s residence resulted in the seizure of a .22 caliber firearm and ammunition which belonged to ELY. ELY had previously been convicted of two felonies: (1) a 2007 conviction for criminal sale of a controlled substance and (2) a 2012 conviction for aggravated driving while under the influence with a child under age fifteen as a passenger.
This prosecution resulted from an investigation conducted by the Albany Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives Albany Field Office. The case is being prosecuted by Assistant United States Attorney Wayne A. Myers.
Three Men Charged with Committing Armed Bank Robberies in Southbury, Cromwell & WallingfordRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation, today announced that a federal grand jury sitting in New Haven has returned an indictment charging MICHAEL MORRIS, 59, of Bloomfield, LEROY McCOY, 47, of Manchester, and KEITH SUTHERLAND, 48, of Coventry, with conspiring to commit violent bank robberies in Southbury, Cromwell and Wallingford.
The four-count indictment was returned on October 2. MORRIS and McCOY were arrested on October 4 and are currently detained. SUTHERLAND is currently detained in state custody on unrelated charges.
According to the indictment, MORRIS, McCOY and SUTHERLAND are alleged to have participated in the armed robberies of the Naugatuck Savings Bank in Southbury on April 20, 2011, the Webster Bank in Cromwell on October 7, 2011, and the Connex Credit Union in Wallingford on April 19, 2012. The defendants are alleged to have stolen a mini-van in the New Haven area prior to each robbery.In each of these robberies, masked men armed with handguns burst into the victim banks and ordered tellers and patrons to the floor. After vaulting the counters and stuffing money from teller drawers into duffle bags, the suspects fled the banks and escaped in stolen vehicles.
A total of approximately $230,000 was taken during the three robberies.
MORRIS, McCOY and SUTHERLAND are charged with one count of conspiracy to commit bank robbery. In addition, MORRIS and McCOY are charged with three counts, and SUTHERLAND with one count, of bank robbery. Each of the charges carries a maximum term of imprisonment of 20 years.
This case has been assigned to U.S. District Judge Vanessa L. Bryant in Hartford.Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI, the Connecticut State Police, and the Cromwell, Wallingford, Fairfield and Orange Police Departments. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
This investigation is ongoing, and the FBI is offering a $50,000 reward for information leading to the identification, arrest and conviction of individuals involved in these and similar bank robberies. Anyone with additional information that may be helpful to the investigation is encouraged to call FBI Special Agent Lisa MacNamara at 203-996-4132.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Three Lynn Residents Sentenced in Mortgage Fraud CaseRead the Press Release
Octuber 18, 2013BOSTON – Three members of a Lynn family were sentenced today for their roles in a mortgage fraud scheme.
United States Attorney Carmen M. Ortiz and Steven Ricciardi, Special Agent in Charge of the United States Secret Service, made the announcement today. The case was investigated in cooperation with the Massachusetts State Police and the Lynn Police Department. The case was prosecuted by Assistant U.S. Attorneys John A. Capin and Brian Perez-Daple.
Steven Soto, 28, and his parents, Pedro Soto, 48, and Carmen Soto, 47, of Lynn were sentenced by U.S. District Judge Mark L. Wolf. Steven Soto was sentenced to 65 months in prison and four years of supervised release. Pedro Soto was sentenced to 48 months in prison, and three years of supervised release. Both men were ordered to pay $1,055,474 in restitution. Carmen Soto was sentenced to one year in prison, three years of supervised release, six months of home confinement, and $792,559 in restitution. Each defendant was convicted by a jury of multiple counts of mail fraud. On June 21, 2013, Steve and Pedro Soto were also convicted of aggravated identity theft.
The Soto’s operated Paradise Real Estate in Lynn and engaged in a scheme to defraud financial institutions by acquiring mortgage loans under false pretenses, including lying about the qualifications and identities of the borrowers taking out the loans. The scheme included one or more of the Sotos posing as others, recruiting straw purchasers, and submitting false loan applications. By doing so, the Sotos concealed their own roles in the mortgage scams. The Court found the loss associated with the scheme was over $1 million.Tampa Woman Pleads Guilty to Stolen Identity Refund FraudRead the Press Release
Tampa, FL – Acting United States Attorney A. Lee Bentley, III announces that Tressa V. Guy (41, Tampa) yesterday pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft. Guy also agreed to forfeit $790,421.28 to the United States as proceeds of the offense. Guy will be sentenced on January 9, 2014, and faces up to twenty-two years in prison.
According to the plea agreement, Guy and her co-conspirators orchestrated a scheme to defraud the United States Treasury by causing fraudulent federal income tax returns to be filed using stolen identities, soliciting personal identifying information and addresses from co-conspirators in Florida and Georgia for use in the scheme, and coordinating the withdrawal of fraudulently-obtained tax refund amounts from prepaid debit cards. The identities used to file the fraudulent tax returns in this scheme belonged to individuals living in various states across the country. As part of the conspiracy, at least 322 federal income tax returns for tax year 2011 were filed from nine IP addresses claiming refunds of $2,701,844.00 and resulting in a loss to the IRS of $790,421.28.
This case was investigated by the Internal Revenue Service, the Tampa Police Department, and the Monroe County, Georgia Sheriff’s Office with assistance from the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Matthew J. Mueller and Trial Attorney Jason H. Poole of the Department of Justice, Tax Division.
Stow Man Charged for $744,000 Scheme to Defraud His EmployerRead the Press Release
A criminal information was filed charging a Stow man with 10 counts related to a $744,000 scheme in which he ordered equipment at his company but then resold it for personal profit, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Thomas A. Steiger, age 45, faces six counts of wire fraud and four counts of interstate transportation of property obtained by fraud.
Steiger worked as the facility manager of the truck repair and cleaning departments at Voith Industrial Services’ plant in Walton Hills. The company had a contract with Ford Motor Company to provide parts and repair services for industrial equipment at Ford’s stamping plant in Walton Hills, according to the information.
From January 2011 through January 2013, Steiger equipment that neither Voith nor Ford needed, including infrared cameras, oscilloscopes, particle counters, earth-ground testers and Fluke meters. He then resold it to third parties, primarily an individual in San Diego, according to the information.
Steiger caused Voith to pay for the equipment but had it delivered to himself personally. He then shipped the equipment via UPS and had the payments from third-party purchasers wired to his personal bank account, according to the information.
He also had Voith purchase and pay for items that Steiger ordered for his personal use, including a laptop computer, a chainsaw, rock salt, a snow thrower and other items, according to the information.
Overall, Steiger caused Voith to make purchases totaling $744,109 for equipment the company never received, was sold by Steiger for his personal profit or was kept for his personal use, according to the information.
If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. The sentence will not exceed the statutory maximum and in most cases will be less than the maximum.
This case is being handled by Assistant United States Attorney James V. Moroney following an investigation by the Federal Bureau of Investigation.
An information is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Sioux City Community Health Center Pays $200,000 to Resolve False Claims Act AllegationsRead the Press Release
Siouxland Community Health Center (SCHC), a community health center in Sioux City, has agreed to pay $200,000 to resolve allegations that it violated the Federal False Claims Act and the State of Iowa False Claims Act. The United States and the State of Iowa contend that SCHC improperly submitted claims to Iowa Medicaid for dental outreach services performed on children who were not eligible for the service because they were either recently treated in SCHC’s dental clinic or were recently the recipient of SCHC’s dental outreach services. As part of the settlement, SCHC did not admit to any wrongdoing or liability.
“It is important that all entities participating in the Medicaid system abide by all of the rules and provide only medically necessary services,” said Sean R. Berry, the United States Attorney for the Northern District of Iowa. “Our office will continue to hold providers accountable to ensure that funds made available for public health purposes are properly utilized.”The state's Medicaid Program Integrity Unit initiated the investigation. False Claims Act cases also arise under the qui tam, or whistleblower provision of the Federal False Claims Act. Under those provisions, a private party may file suit upon behalf of the United States for false claims and share in any recovery.
Shinholster Sentenced for Food Stamp Fraud and Money LaunderingRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Elbert Eugene Shinholster, age 77, of Wilkinson County, Georgia, was sentenced on Friday, October 18, 2013, by the Honorable C. Ashley Royal, Chief United States District Judge, in Macon, Georgia, to serve forty (40) months imprisonment and to pay $4,680,557.20 in restitution to the food stamp program, Department of Health and Services, as the result of his plea of guilty on January 30, 2012, to federal charges of one count each of food stamp fraud and money laundering.As part of his plea of guilty, Mr. Shinholster admitted that, as the owner and operator of Shinholster’s Grocery and Meat Market located in Irwinton, Georgia, he illegally conspired with almost 2,000 food stamp recipients to defraud the food stamp program. As part of the scheme each food stamp recipient would provide Mr. Shinholster with an electronic benefits transfer (EBT) card and personal identification number. Mr. Shinholster would then run the EBT card through the point of sale machine administered by the Food Stamp Program as though the cardholder had purchased food when, in fact, the cardholder got cash instead. Mr. Shinholster admitted that he knew that an EBT card was to be used to purchase food only and not to be sold for cash. The illegal EBT debit would include an additional thirty (30) per cent of the cash amount as profit for Mr. Shinholster.
“The food stamp program was established for the noble purpose of providing food for needy families, especially the children of those families. Not only did Mr. Shinholster defraud the program, he damaged it by providing ammunition to those detractors who believe that this type of government program is rife with fraud and should be eliminated. With every dollar that Mr. Shinholster took for himself, a needy child in Georgia could have been fed,” said United States Attorney Michael Moore.
“This was a case of greed and a serious crime,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, Internal Revenue Service Criminal Investigations.
The case was investigated by the Internal Revenue Service Criminal Investigations. The case was prosecuted by Assistant United States Attorneys Michael Solis and Danial Bennett.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Sentences for October 15 – 18, 2013Read the Press Release
Michael A. Guara, 33, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 18, 2013, for conspiracy to possess with intent to distribute, and to distributing 50-200 grams of methamphetamine. Guara was arrested in Cheyenne, Wyoming. He received 99 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $200.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Stephen Rodger Campbell, 37, of Auburn, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 18, 2013, for possession of child pornography. Campbell was arrested in Auburn, Wyoming. He received 120 months imprisonment, to be followed by a life term of supervised release, and was ordered to pay a $100.00 special assessment and a $1,000.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Daniel Serrano-Alvarado, 39, of El Salvador, was sentenced by Federal District Court Judge Alan B. Johnson on October 17, 2013, for illegal re-entry of a previously deported alien into the United States. Serrano-Alvarado was arrested in Casper, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Joel Molina-Cruse, aka Joel Escorza-Hernandez, 34, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on October 17, 2013, for illegal re-entry of a previously deported alien into the United States. Molina-Cruse was arrested in Rawlins, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
James Davis, 38, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 17, 2013, for conspiracy to possess with intent to distribute, and to distribute methamphetamine and for distribution of at least 1.5 kilograms but not more than 15 kilograms of a mixture or substance containing a detectable amount of methamphetamine. Davis was arrested in Rock Springs, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Kyle Braaten, 33, of Thermopolis, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on October 16, 2013, for possession of child pornography. Braaten was arrested in Thermopolis, Wyoming. He received four months imprisonment, to be followed by twenty years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Vanessa Birkenkamp, 29, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 16, 2013, for conspiracy to possess with intent to distribute, and to distributing at least 50 grams of a mixture or substance containing a detectable amount of methamphetamine. Birkenkamp was arrested in Cheyenne, Wyoming. She received 46 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Drug Enforcement Administration.
Ann Marie Centore, 42, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 16, 2013, for conspiracy to possess with intent to distribute, and to distributing at least 50 grams but not more than 200 grams of a mixture or substance containing a detectable amount of methamphetamine. Centore was arrested in Burlington, Colorado. She received 37 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the U.S. Drug Enforcement Administration.
Enrique Castillo-Nunez, 30, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 15, 2013, for illegal re-entry of a previously deported alien into the United States. Castillo-Nunez was arrested in Cheyenne, Wyoming. He received six months imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was by investigated U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Douglas R. Cullison, 38, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 15, 2013, for conspiracy to possess with intent to distribute, and to distributing 200-350 grams of methamphetamine. Cullison was arrested in Cheyenne, Wyoming. He received 46 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Lance A. Garcia, 28, of Colorado Springs, Colorado, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 15, 2013, for conspiracy to possess with intent to distribute, and to distributing 500 grams to 1.6 kilograms of methamphetamine. Garcia was arrested in Colorado Springs, Colorado. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $900.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Sea-Tac Airport Copper Thief Pleads Guilty to Theft of Public PropertyRead the Press Release
A repeat offender who stole thousands of feet of copper wire from runway light towers at Seattle-Tacoma International Airport pleaded guilty October 17, 2013 to theft of public property, announced U.S. Attorney Jenny A. Durkan. TIMOTHY LYNCH, 50, faces up to ten years in prison when sentenced by U.S. District Judge James L. Robart on January 13, 2014.
According to records file in the case, the theft was discovered on February 12, 2013, when a Port of Seattle employee noticed damage to the fence surrounding the runway light structures near South 188th Street and Des Moines Memorial Drive. In total, approximately 7,200 feet of copper cable was stolen from Federal Aviation Administration towers, rendering them inoperable and potentially posing a threat to airline safety. LYNCH admits that he entered a secured area of Sea-Tac airport and removed copper cable connected to the light towers. Replacing the copper wire and repairs to damages cost the FAA more than $30,000.
Under the terms of the plea agreement, the parties will recommend that the Court sentence Lynch to 30 months in prison.
The case is being investigated by the FBI Safe Streets Task Force which includes officers from the Port of Seattle Police Department, the Seattle Police Department and the King County Sheriff’s Department. The case is being prosecuted by Executive Assistant United States Attorney Thomas Bates.
San Antonio Man Sentenced to 18 Months in Federal Prison on Mail Fraud ConvictionRead the Press Release
Case Related to the Fraud Conviction of Former UMC Vice President Greg Bruce
LUBBOCK, Texas — Rodolfo Reyes Mata, aka Rudy Mata, 40, of San Antonio, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to18 months in federal prison and ordered to pay $54,750 in restitution following his guilty plea in July 2012 to one count of mail fraud and aiding abetting. Judge Cummings ordered that he surrender to the Bureau of Prisons on November 22, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
From November 2010 through September 2011, Mata submitted 15 false and fraudulent invoices to University Medical Center in Lubbock (UMC) for ATAM Technology Solutions, knowing that the submission of such invoices would cause UMC to pay the invoices by mailing checks to addresses listed. During the scheme, Mata and his friend, Robert Gregory Bruce, the former Vice President of UMC, caused UMC to pay approximately $54,750 to ATAM Technology Solutions for goods and services that were not provided. ATAM Technology Solutions, according to the factual resume filed in the case, was in fact, an alter ego of Mata. Mata used these funds for personal living expenses, educational expenses and travel and entertainment expenses.
Bruce was sentenced last month to 51 months in federal prison and ordered to pay $737,492 in restitution to UMC. He pleaded guilty in June 2013 to his part in the same offense. In documents filed in Bruce’s case, he admitted that from June 2007 to December 12, 2011, he conspired with Mata to submit false and fraudulent invoices for two companies, B.R. Media Monitoring (an alter ego of Bruce) and ATAM Technology Solutions, knowing that the submission of such invoices would cause UMC to pay the fake invoices. Over the course of the conspiracy, UMC paid approximately $681,908 on invoices for fake companies that did not provide goods or services as described in the invoices. According to plea papers filed, Bruce used these funds, in part, to pay Mata’s personal living expenses, educational expenses, and travel and entertainment expenses.
The cases were investigated by the FBI. Assistant U.S. Attorney Amanda R. Burch prosecuted.
San Angelo Man Sentenced to 97 Months in Federal Prison for Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — Joshua I. Suter, 24, of San Angelo, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 97 months in federal prison following his guilty plea in July 2013 to one count of possession of child pornography. He has been in custody since his release was revoked earlier this month. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, while living in San Angelo, Suter owned a computer which he kept at his residence. That computer was connected to the Internet. In the course of using the Internet to search for depictions of minors engaged in sexually explicit conduct, Suter downloaded and viewed numerous child pornography videos.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Air Force Office of Special Investigations, Goodfellow Air Force Base. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Role in Drug Conspiracy Earns Philadelphia Man More Than 16 Years in PrisonRead the Press Release
Lawrence Wilson, 24, of Philadelphia, was sentenced today to 194 months in prison for his role in a large scale drug organization responsible for transporting multiple kilograms of cocaine and hundreds of pounds of marijuana to the Eastern District of Pennsylvania. Wilson’s brother, Michael, ran the organization. In addition to the conspiracy, Lawrence Wilson was a major participant in the kidnapping of two female drug couriers on January 17, 2011. The women had just returned from Los Angeles, California with four suitcases containing marijuana and cocaine for the organization. While waiting for the suitcases at the baggage claim carousel at the Philadelphia International Airport, a rival drug trafficking organization stole one of the suitcases. Lawrence Wilson and other members of the organization believed the women had set up the robbery. Lawrence Wilson and co-conspirator held the women at gunpoint. Wilson was also involved in money laundering conspiracy, depositing approximately $5000 into the Bank of America account being used by the California drug supplier.
Wilson pleaded guilty the day of trial, in July, to conspiring to distribute 500 grams or more of the mixture and substance containing a detectable amount of cocaine and 100 kilograms or more of a mixture and substance containing a detectable amount of marijuana, one count of aiding and abetting the attempt to possess with intent to distribute 500 grams or more of cocaine, one count of aiding and abetting the possession and brandishing a firearm in furtherance of drug trafficking crime, one count of conspiracy to commit money laundering, and one count of money laundering.
In addition to the prison term, U.S. District Court Judge Michael Baylson ordered a $5,000 fine and 5 years of supervised release.
The case was investigated by Federal Bureau of Investigation and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorney Karen S. Marston.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Riverview Woman Indicted for Stolen Identity Refund FraudRead the Press Release
Tampa, FL – Acting United States Attorney A. Lee Bentley, III announces the unsealing of a fourteen-count indictment charging Ashley C. Guy with multiple counts of wire fraud, aggravated identity theft, possession of unauthorized access devices, and destruction of records in a federal investigation. If convicted, she faces a maximum penalty of twenty years in federal prison on each wire fraud count; twenty years on the destruction of records count; and 10 years in federal prison on the access device count, all to be followed by two years in prison for each aggravated identity theft count.
According to the indictment, Guy devised and participated in a scheme to defraud the United States Treasury by causing federal income tax returns fraudulently claiming tax refunds to be filed with the IRS. Guy directed the refunds claimed on these tax returns to be electronically deposited onto prepaid debit cards that were issued in the names of third parties without the third parties’ knowledge. The indictment further alleges that as part of the scheme, Guy destroyed and attempted to destroy documents, records, and tangible objects containing the means of identification of third parties with the intent to impede, obstruct, and influence a federal investigation.
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 Internal Revenue Service and the Tampa Police Department, with assistance from the Hillsborough County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Matthew J. Mueller and Trial Attorney Jason H. Poole of the Department of Justice, Tax Division.
Remarks Investiture of Kenneth Gonzales to the United States District Court District of New MexicoRead the Press Release
John Walsh
United States Attorney
District of ColoradoIt's a great honor for me to speak here on behalf of the U.S. Attorney's community and the Department of Justice at the investiture of a great friend, Ken Gonzales. We have a several U.S. Attorneys here, at their own expense: Sandy Coates from Oklahoma City, Ken Magidson from Houston, and Steve Yarbro, Acting U.S. Attorney in New Mexico.
Now, standing before all these judges makes me mindful of my duty of candor as an officer of the court. For that reason, I am duty bound to tell you that for Ken’s fellow U.S. Attorneys, this is one of those bittersweet moments we all face in life.
First and foremost, we U.S. Attorneys feel great happiness, satisfaction and pride in Ken taking on this new position for which he is so remarkably well suited. We also are happy for the District of New Mexico. You are formally inducting today a judge whom I am confident will over time become a towering figure – though a quiet and unassuming one – in the history of this district. This is a judge destined for great things, and for great service to the people of New Mexico and the nation.
But at the same time, speaking as an officer of the court and as representative of the 93 U.S. Attorneys around the United States, it's hard not feel a certain wistfulness. None of you will be surprised to hear that Ken has always stood out among U.S. Attorneys nationally, and has enjoyed the particular respect and appreciation his colleagues.
That's not because he was the loudest. He was not. It's not because he was the best connected back East and aiming for the reins of power in DC. He was not. It is not because he pushed his way to the limelight in front of every issue. He did not. In fact, the affection and profound respect that Ken Gonzales has earned nationally flowed precisely from the fact that he was and did none of those things. Instead, Ken quietly and effectively answered the call when needed, no matter how difficult the assignment, and without expectation of personal reward. He brought a firm professionalism, steady judgment and a bottomless well of integrity to the job that together commanded our attention and compelled our admiration. He was, when all is said and done, a U.S. Attorney's U.S. Attorney -- an example for all of us of how to do the job.
Of course, all of us as U.S. Attorneys know that our time in these positions is comparatively short – unlike, say, the service of U.S. District Judges. In Ken’s case, we all knew he was bound for bigger things. I know I speak for all us in celebrating the fact that Ken will now have an opportunity to serve the public in a place of enormous responsibility and authority, where he can bring to bear all the greatness of his mind and spirit to serve the public, without regard to the shifting winds of politics and elections.
On a personal note, Ken has been a constant friend and source of counsel for me over these years as well, and I expect will continue to be. From the day that Ken showed up at my swearing in as U.S. Attorney three years ago in Denver until a few weeks ago at the 10th Circuit Bench and Bar conference, Ken has been for me one of those crucial friends that we are all lucky to have -- the friend who keeps your feet on the ground, who provides a sense of perspective and context, who makes hard times easier, and who keeps the good times from going to your head. I know that Ken played that role not just for me, but for many others.
And what better temperament and frame of mind could there be than that for a United States District Judge? So, on behalf of the U.S. Attorney's community, let me say to Chief Judge Armijo: The District of New Mexico is getting a tremendous gift in Ken Gonzales. I know you will use it well.
By the way, I thought it was only appropriate that Ken will be starting his time as a U.S. District Judge in Las Cruces, where he started his career as an Assistant U.S. Attorney, and also where border issues are so important. Ken talked to me constantly about the intense border challenges this district faces. But I thought it was odd you moved him to the Southern border, as in our conversations he was always talking to me about New Mexico's troublesome northern border!
Eric Holder, the Attorney General of the United States, was unable to make it here today because of all the hubbub y algarabía right now in Washington. He sends both his deep regrets and a letter that he asked me to read:
[Read letter]
On that note of national recognition and appreciation, let me conclude.
Ken, felicitaciones. Vamos a echarte de menos, amigo. Suerte, y nos vemos pronto.