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Friday 16 August 2013
Winchester Man Pleads Guilty to Child Porn ChargesRead the Press Release
HARRISONBURG, VIRGINIA – A Winchester man who has admitted to enticing 19 minors into engaged in sexually explicit conduct via web cams, pled guilty yesterday afternoon in the United States District Court for the Western District of Virginia in Harrisonburg.
Brian Patrick Aronhalt, 32, of Winchester, Va., pled guilty to one count of conspiracy to produce child pornography, one count of enticing minors to engage in sexually explicit conduct, four counts of producing child pornography, one count of possession of child pornography and one count of distributing child pornography.
“Mr. Aronhalt admitted that he used deception to repeatedly abuse children,” United States Attorney Timothy J. Heaphy said today. “His case serves as a grim reminder for parents to monitor what their children are doing online. Those of us who work in law enforcement will continue to pursue and prosecute predators like Mr. Aronhalt. We won’t be successful, however, unless parents acknowledge the threat and take steps to help their children stay safe online.”
Aronhalt admitted yesterday to posing as a minor female online and enticing 19 minor boys to masturbate for him via webcam. The defendant learned from others online how to use a sexually explicit video of a female to appear as a live webcast to the minor boys. Using the pre-recorded video, Aronhalt enticed the boys to masturbate for him via webcam and recorded the sexually explicit conduct.
In addition, during the execution of a search warrant, agents from the Federal Bureau of Investigation and the DC Internet Crimes Against Children Task Force found thousands of images depicting child pornography on Aronhalt’s computers.
At sentencing, the defendant faces a mandatory minimum sentenced of 15 years in Federal prison and a maximum possible penalty of life in prison. He also faces a potential lifetime of supervised release.
The investigation of the case was conducted by the Federal Bureau of Investigation, the DC Internet Crimes Against Children Task Force and the Child Exploitation and Obscenity Section of the Department of Justice. Assistant United States Attorney Nancy Healey will prosecute the case for the United States along with Trial Attorney Sarah Chang, U.S. Department of Justice, Child Exploitation and Obscenity Section (CEOS). CEOS’s High Technology Investigative Unit (HTIU) conducted computer forensic analysis for the case.
Wheeler County Man Sentenced to 21 Months in Federal Prison for Illegally Possessing FirearmsRead the Press Release
AMARILLO — Scott Leavitt, 39, of Shamrock, Texas, was sentenced this morning by U.S. District Judge Mary Lou Robinson to 21 months in federal prison following his guilty plea in May 2013 to a felony information charging one count of unlawful possession of a machine gun. Judge Robinson remanded Leavitt into custody. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, on August 14, 2012, deputies with the Wheeler County Sheriff’s Office were dispatched to the Cemetery Road Trailer Park in Shamrock, where they found Leavitt, outside a mobile home, suffering from a severe injury to his hand. Leavitt advised that he had been making an explosive device and that it exploded in his hand. He was rushed to the hospital.
Deputies obtained a warrant and searched Leavitt’s mobile home. Inside they found remnants of the explosive device that had injured Leavitt, some hand grenades and two machine guns that had been originally manufactured as semi-automatic weapons, but had been converted to fully automatic weapons.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, the Wheeler and Winkler County Sheriff’s Offices and the Amarillo Police Department’s bomb squad. Assistant U.S. Attorney Vicki Lamberson prosecuted.
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Tyran Lenard, 23, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of unlawful transport of firearms. 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 11/21/2013. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives .This case is being prosecuted by Assistant United States Attorney William Grimmer.
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:
Marcus Henderson, 42, of South Bend, Indiana was sentenced by District Judge Robert L. Miller Jr to 39 months imprisonment and 3 years of supervised release after being found guilty of the felony offense of possession of firearm by an unlawful user of controlled substances.According to documents filed in this case, Henderson held a woman hostage until law enforcement arrived and intervened.Upon further investigation, five firearms were located in Henderson’s property, including a stolen handgun. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Demerius Shaw, 20, of Indianapolis, Indiana was sentenced by District Judge Robert L. Miller, Jr., to 600 months imprisonment and 10 years of supervised release after pleading guilty to the felony offenses of racketeering and carrying and using a firearm during a drug trafficking crime/crime of violence .Forty of the sentenced years are on Count 1 RICO which include a murder, two additional shootings and armed drug trafficking.According to documents filed in this case, in 2010 and 2011, Shaw was a member of the criminal enterprise Cash Out Boyz.During his time with the organization, Shaw was involved in the home invasion of a suspected drug dealer.During the invasion, an occupant of the home was shot and robbed of money and drugs. Shaw was also involved in additional numerous violent criminal activities including the murder of a rival gang member. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the South Bend Police Department.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Tisha Martin, 44, of South Bend, Indiana was sentenced by Magistrate Judge Christopher A Nuechterlein to serve 6 months of probation and $350 in restitution after pleading guilty to the felony offense of obstructing the mail.According to documents filed in this case, Martin stole numerous first class greeting cards while working as a mail carrier.At least two items of stolen mail contained cash.The theft amount is estimated from $250 to $500. This case was the result of an investigation by the United States Postal Service-Office of the Inspector General.This case was prosecuted by Assistant United States Attorney Jesse Barrett.
Francisco Perez, 33, of Gary, Indiana was sentenced by District Judge Jon E. DeGuilio to serve 46 month imprisonment and 4 years supervised release after pleading guilty to the felony offense of knowingly and intentionally possessing with the intent to distribute over 500 grams of cocaine.According to documents filed in this case, in February 2013, Perez was arrested in the Lighthouse Mall parking lot in Michigan City with over 500 grams of cocaine. Perez had received the narcotic delivery from Gilberto Galindo-Lopez.This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Gilberto Galindo-Lopez, a/k/a Gabriel Ramirez, 33, of Los Angeles, California was sentenced by District Judge Jon E. DeGuilio to serve 65 months imprisonment (to run consecutive to the anticipated sentence in a state court case) and 4 years supervised release after pleading guilty to the felony offense of possessing with the intent to distribute over 500 grams of cocaine.According to documents filed in this case, in February 2013, Galindo-Lopez was arrested in the Lighthouse Mall parking lot in Michigan City with over 500 grams of cocaine. He had delivered the narcotic to Francisco Perez. This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Oscar Arzate, 26, of LaPorte, Indiana, a defendant in the case US v Campos et al., was sentenced by District Judge Jon E. DeGuilio to serve 46 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of distributing a mixture or substance containing cocaine.According to documents filed in this case, Arzate sold cocaine while working with the Campos family, a local established crime enterprise. This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Willis Fields, 47, of Elkhart, Indiana, was sentenced by District Judge Jon DeGuilio to serve 3 years supervised probation, 6 months location monitoring on home detention and $27,610.00 in restitution after pleading guilty to the felony offense of theft of government property.According to documents filed in this case, Fields applied for federal extended unemployment insurance benefits claiming that he was not working when in truth he was working at a company in Elkhart, Indiana.The total money defrauded was assessed at approximately $15,551.This case was the result of an investigation by the Department of Labor.This case was prosecuted by Assistant United States Attorney Barbara Brook.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Brittini Anderson, 27, of Gary, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of making false statements in the acquisition of a firearm.Sentencing has been set for 11/15/13.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Nicholas Padilla.
Danilo Danti, 60, of Highland Park, Illinois, pled guilty before Chief Judge Philip Simon to the felony offense of transportation of stolen goods.Sentencing has been set for 11/15/13.This charge was filed as a result of an investigation by the United States Secret Service.This case is being prosecuted by Assistant United States Attorney Randall Stewart.
Kevin Paul Brewster, 41, of Portage, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offenses of production of child pornography, receipt of child pornography and possession of child pornography.Sentencing has been set for 10/31/13.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 Portage Police Department.This case is being prosecuted by Assistant United States Attorney Jill Koster.
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:
Alfonso Salinas, 53, of Hammond, Indiana, was sentenced by Chief Judge Philip Simon to 42 months imprisonment and 1 year of supervised release after pleading guilty to the felony offenses of receipt of a bribe by an agent of a local government receiving federal funds and failure to file a federal tax return.According to documents filed in this case, Salinas, an elected Hammond City Councilman at the time, readily accepted $10,500.00 from co-defendant David Johnson, to be influenced. Salinas corruptly accepted 10 checks during a 21 month period. During a 10 year time period (and overlapping the bribe payments), Salinas failed to file nine federal tax returns or pay any of the over $45,000.00 in taxes owed. Salinas also took in campaign contributions and deposited the money in his personal account.These contributions never appeared on campaign contribution account reports filed with the Board of Elections. This case was the result of an investigation by the Internal Revenue Service.This case was prosecuted by Assistant United States Attorney Gary Bell.
Shana King, 23, of Gary, Indiana, and Alnese Frazier, 27, of Indianapolis, Indiana, defendants in the case US v Harris et al., were sentenced by Chief Judge Philip Simon to 1 day, time served, after pleading guilty to the felony offense of conspiracy and attempt to commit fraud with identification documents.King was ordered to pay $27,061.59 in restitution and 2 years of supervised release.Frazier was ordered to pay $38,500.00 in restitution and 4 years of supervised release.The restitution amounts are to be paid jointly with all co-defendants in this case.According to documents filed in this case, the defendants obtained the account and personal information of individuals in over 21 states and fraudulently added their names to the victims’ accounts in an account takeover scheme. The defendants either utilized their own names or utilized aliases with the accounts which had been taken over. They purchased gift cards, Postal money orders, and made numerous retail purchases with the fraudulently obtained credit cards throughout Indiana, Illinois, Wisconsin, and Georgia. They also made cash withdrawals on the accounts and utilized the convenience checks associated with the accounts at various financial institutions located in Indiana, Illinois, Wisconsin, and Georgia. Throughout the criminal conduct, the defendants would also mail gift cards, Postal money orders, and U.S. currency from Indiana and Wisconsin to Georgia.This case was the result of an investigation by the United States Postal Service-Office of the Inspector General.This case was prosecuted by Assistant United States Attorney Toi Houston.
Justin Tiggs, 29, of Gary, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 77 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession of ammunition by a convicted felon.Tiggs has prior felony convictions for aggravated use of a weapon by a felon, possession of a controlled substance and escape.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Thomas McGrath.
U.S. Attorney Heaphy Announces Distribution of Forfeiture Proceeds to Commonwealth’s AttorneysRead the Press Release
ABINGDON, VIRGINIA – In May 2012, global health care company Abbott Laboratories Inc., pleaded guilty in United States District Court in Abingdon to unlawful promotion of the prescription drug Depakote for uses not approved as safe and effective by the Food and Drug Administration. As part of its plea agreement with the Department of Justice, the company agreed to pay $1.5 billion to resolve criminal and civil liability arising from the company’s conduct.
Following a lengthy investigation led by AUSAs in the Western District of Virginia, Abbott pleaded guilty to misbranding Depakote by promoting the drug to control agitation and aggression in elderly dementia patients and to treat schizophrenia when neither of these uses was FDA approved. The company is currently on probation for this conduct and is implementing a series of changes designed to prevent off label marketing in the future.
“The federal prosecution of Abbott Labs resulted in a total settlement of $1.5 billon, the largest single-drug settlement of an off-label pharmaceutical fraud case in Department history,” U.S. Attorney Heaphy said today. “Substantial cases like this one help deter waste fraud and abuse in our health care system. The Assistant United States Attorneys in the Western District of Virginia have a long, distinguished track record of successfully bringing cases against drug manufacturers. We will continue to prioritize health care fraud cases and ensure that federal health care dollars are responsibly utilized.
Two Southern Illinois Men Sentenced on Methamphetamine ConspiracyRead the Press Release
On August 15, 2013, David A. Shockley, 36, of Murphysboro, IL, and Steven A. Zweigart, a/k/a “Swag,” 36, of Steeleville, IL, were sentenced in United States District Court in Benton on an indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Shockley and Zweigart had previously pled guilty to the methamphetamine offense, which occurred between January 2011, and January 2013, in Perry, Jackson, and Randolph Counties. Shockley was sentenced to 180 months in prison, followed by 5 years supervised release, and fined $600. Zweigart was sentenced to 168 months in prison, followed by 4 years supervised release, and fined $600. Evidence at the plea hearings established that Shockley and Zweigart were involved with others in the manufacture of methamphetamine. Shockley and Zweigart obtained pseudoephedrine for use during the manufacture of methamphetamine and also were involved in the methamphetamine cooks. At sentencing, both Shockley and Zweigart received enhanced sentences based on their classification as Career Offenders. Five co-defendants have previously been sentenced for their role in the methamphetamine conspiracy. Five 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.
Two Organized Crime Members Sentenced to 180 Months and 168 Months, Respectively, for Conspiring to Distribute CocaineRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Joseph Sclafani and Neil Lombardo, members of the Gambino organized crime family of La Cosa Nostra, were sentenced to terms of imprisonment of 180 months and 168 months, respectively, following their April 2013 guilty pleas to conspiracy to distribute cocaine in Brooklyn and Staten Island. The sentences were imposed by United States District Court Judge John Gleeson, who also ordered that both defendants serve three years of supervised release upon their release from prison, and forfeit $500,000 in narcotics proceeds.
The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Brian R. Crowell, Special Agent-in-Charge of the U.S. Drug Enforcement Administration (DEA).
“Years ago these defendants chose a life of violence and crime, pledging their loyalty to the Gambino crime family. Today’s case shows them still clinging to that choice, despite previous arrests and incarcerations. Once out of prison, both men continued their criminal connections and activities, working to bring cocaine across the country into the streets and neighborhoods of Brooklyn and Staten Island,” stated United States Attorney Lynch. “Today’s sentencings send an important message to both organized crime and drug trafficking enterprises. Both remain high priorities for the Department and this Office, and we will pursue them with all available resources and law enforcement methods -- particularly in the case of violent recidivists like the defendants in this case.” Ms. Lynch extended her grateful appreciation to the DEA, the agency responsible for leading the government’s investigation.
Between 2008 and August 2011, Lombardo and Sclafani conspired to distribute multi-kilogram amounts of cocaine in Brooklyn and Staten Island. Lombardo, who lived in Las Vegas, Nevada, obtained the cocaine from his sources in Mexico and then arranged for it to be transported to Brooklyn. Once the cocaine was in Brooklyn, Lombardo delivered it to Sclafani, who distributed to cocaine dealers throughout Brooklyn and Staten Island. According to government filings, in May 2009, Sclafani was stopped in Kansas en route to Las Vegas in possession of more than $100,000 that he intended to use to pay Lombardo for cocaine, and in April 2011, DEA agents at John F. Kennedy International Airport seized $155,000 in cash that Lombardo possessed as he waited to board a flight back to Las Vegas. In addition, Lombardo and Sclafani were recorded by a cooperating witness explicitly discussing their cocaine business and arranging multi-kilogram transactions. Lombardo and Sclafani agreed as part of their plea agreements with the government that they were responsible for conspiring to distribute between 15 and 50 kilograms of cocaine.
Both Lombardo and Sclafani have storied criminal histories. In addition to a prior felony narcotics trafficking conviction, in 1999, Lombardo was convicted of attempted murder in New Jersey State court and witness tampering in the United States District Court for the Southern District of New York after he shot the brother of an individual who he believed was cooperating with law enforcement against him. He was sentenced to 10 years’ imprisonment. In addition to felony racketeering and narcotics trafficking convictions, in 1990, Sclafani was convicted of criminal possession of a weapon and harboring the fugitive Gus Farace, who was wanted by authorities for the February 1989 murder of DEA Special Agent Everett Hatcher on Staten Island. Specifically, in November 1989, in an effort to protect Farace, Sclafani returned fired at assailants who shot at and killed Farace. Sclafani was sentenced to six years’ imprisonment.
Both Lombardo and Sclafani are inducted members -- “made men” -- in the Gambino crime family, a sign of their lifelong commitment to organized crime and the crime family’s recognition of their capacity for committing violent and lucrative crimes.
Eight other members of the conspiracy that Lombardo and Sclafani headed up have pled guilty to cocaine conspiracy charges, including Staten Island resident Afrim Kupa and his brother Lulzim Kupa. On August 9, 2013, Lulzim Kupa, who has prior convictions for narcotics trafficking, racketeering, bank larceny, and bank fraud, was sentenced to 132 months’ imprisonment for his role in the conspiracy. Afrim Kupa, who also has prior convictions for narcotics trafficking, racketeering, bank larceny and bank fraud, is awaiting sentencing.
The government’s case is being prosecuted by Assistant United States Attorneys Allon Lifshitz and Robert T. Polemeni.
The Defendants
JOSEPH SCLAFANI, also known as “Joe Boy”
Age: 47NEIL LOMBARDO
Age: 57Two Defendants Plead Guilty in Manhattan Federal Court to Participating in GamblingRings Connected to Organized CrimeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that WILLIAM BARBALAT and KIRILL RAPOPORT pled guilty for their roles in the operation of high-stakes illegal poker games in New York City. BARBALAT pled guilty on August 14, 2013 before U.S. District Court Judge Jesse M. Furman to traveling in interstate commerce in aid of an unlawful activity, the operation of an illegal poker game. RAPOPORT pled guilty today before Judge Furman to conducting an illegal gambling business, an illegal poker game.
Manhattan U.S. Attorney Preet Bharara said: “For three years, William Barbalat and Kirill Rapoport oversaw illegal gambling enterprises in the Southern District of New York. With their pleas, we move closer to holding to account all those who participated in this wide-ranging network of criminal conduct linked to organized crime.”
BARBALAT and RAPOPORT were charged in April 2013 in a 34-defendant indictment charging members and associates of two Russian-American organized crime enterprises with various crimes including racketeering, money laundering, extortion, and various gambling offenses.
According to the Indictment, a superseding information filed against RAPOPORT, other documents filed in this case, and statements made at various conferences in this case:
BARBALAT and RAPOPORT each ran a high-stakes illegal poker game in New York City from 2010 through 2012, and 2012 through 2013, respectively. At these games, the pots frequently reached tens of thousands of dollars or more. The operators of these games, including BARBALAT and RAPOPORT, collected percentages of the pots known as “rakes.” Each of the poker games employed at least five or more people to assist with the operation of the games, payments of debts, and collection of debts.
BARBALAT and RAPOPORT each face a maximum sentence of five years in prison and three years of supervised release. As part of his plea agreement, BARBALAT agreed to forfeit $150,000 to the United States. RAPOPORT agreed to forfeit $250,000 to the United States. BARBALAT and RAPOPORT are scheduled to be sentenced by Judge Furman on December 16, 2013 at 3:30 p.m. and December 18, 2013 at 3:00 p.m., respectively.
BARBALAT and RAPOPORT are the second and third defendants to plead guilty in the case. Bryan Zuriff pled guilty on July 26, 2013 and is scheduled to be sentenced by Judge Furman on November 25, 2013 at 3:00 p.m.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, the New York City Police Department, and Internal Revenue Service, Criminal Investigation.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Harris M. Fischman, Joshua A. Naftalis, Peter Skinner, and Kristy J. Greenberg of the Organized Crime Unit are in charge of the prosecution. Assistant U.S. Attorneys Alexander Wilson and Christine Magdo of the Office’s Asset Forfeiture Unit are responsible for the forfeiture aspects of the case.
U.S. v. Kirill Rapoport S1 Information
U.S. v. Alimzhan Tokhtakhounov et al. IndictmentToledo Woman Charged with Human TraffickingRead the Press Release
A criminal information was filed today charging Toledo woman with interstate sex trafficking involving a minor, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office.
Amber Ginter, aka Amber Mendoza, age 35, is accused of transporting a minor from Ohio to Michigan in December 2009 with the purpose that the minor engage in commercial sexual activity, according to the information.
“This case is another stark reminder that human trafficking exists in our district and in our collective back yard,” Dettelbach said. “It’s a reminder that we need to be better neighbors and ask questions if something looks suspicious.”
Anthony said: “The sexual human trafficking of minors for profit is an injustice that will not be tolerated. The FBI continues to aggressively pursue and bring to justice those who violate the rights of our most vulnerable of the community.”
This case is being prosecuted by Assistant U.S. Attorney James V. Moroney, following an investigation by the Toledo Resident Agency of the FBI and the Northwest Ohio Violent Crimes Against Children Task Force. The task force is made up of members of the FBI, Toledo Police Department, Perrysburg Township Police Department, Lima Police Department, Oregon Police Department, Fulton County Sheriff’s Office, Ottawa County Sheriff’s Office, Ohio State Highway Patrol and the Bureau of Criminal Investigation.
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 violation. In all cases, the sentence will not
exceed the statutory maximum and in most cases it will be less than the maximum.An information is 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.Three Sentenced in Major Drug Conspiracy & Money Laundering RingRead the Press Release
On June 3, 2013, Rosalina Gonzalez was sentenced by Chief Judge Laurie Smith Camp for Conspiracy to Distribute 500 grams or more of methamphetamine mixture and Money Laundering. She will serve a term of 135 months in prison for both charges to be served concurrently. In addition, she was sentenced to a term of Supervised Release of 5 years on the drug conspiracy charges and 3 years on the money laundering charges.
On August 12, 2013, Jose Flores-Garcia was sentenced by Chief Judge Laurie Smith Camp for Conspiracy to Distribute 500 grams or more of methamphetamine mixture and Money Laundering. He will serve a term of 210 months for the drug conspiracy and 210 months for the money laundering charge to be served concurrently, a term of Supervised Release of 5 years on the drug conspiracy charge and 3 years on the money laundering charges.
On August 12, 2013, Jorge Luis Flores Contreras was sentenced by Chief Judge Laurie Smith Camp for Conspiracy to Distribute 500 grams or more methamphetamine mixture and Money Laundering. He will serve a term of 108 months for the drug conspiracy and 108 months for the money laundering charge to be served concurrently, a term of Supervised Release 5 years for the drug conspiracy charges and 3 years on the money laundering charges.
The case involved wiretaps and an informant jointly handled by the Bellevue and Omaha Police Departments, the Internal Revenue Service, the Federal Bureau of Investigation and the Drug Enforcement.
Three Randolph County Residents Charged with Methamphetamine ConspiracyRead the Press Release
Three Randolph County residents were indicted on August 6, 2013, on charges of conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Stephen P. Salzwedel, a/k/a “Steak,” 40, Tony G. Carle, 26, and Amber M. Calbreath, a/k/a “Amber Wehrman,” 31, all of Tilden, IL, are charged with conspiracy to manufacture methamphetamine. The indictment alleges that the offense occurred between 2012 and April 2013, in Perry, Jackson and Randolph Counties. The three co-defendants made their initial appearances in United States District Court in Benton on August 12, 2013. At an August 15, 2013, hearing, they were ordered held without bond pending an October 15, 2013, jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Salzwedel, Carle, and Calbreath face a term of imprisonment of up to 20 years, a $1,000,000 fine, and 3 years of supervised release.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Illinois State Police Methamphetamine Response Team, and Drug Enforcement Administration. The Randolph County State’s Attorney’s Office also assisted in the investigation.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Theodore Edward Whitford, Jr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 15, 2013, before Chief U.S. District Judge Dana L. Christensen, THEODORE EDWARD WHITFORD, JR., a 27-year-old resident of Box Elder and an enrolled member of the federally recognized Chippewa Cree Indian Tribe, was sentenced to a term of:
- Prison: 20 months
- Special Assessment: $100.00
- Supervised Release: 3 years
WHITFORD was sentenced in connection with his guilty plea to assault resulting in serious bodily injury.
In an Offer of Proof filed by Assistant U.S. Attorney Danna R. Jackson, the government stated it would have proved at trial the following:
On April 8, 2011, WHITFORD turned the vehicle he was driving west into the Northern Winz Casino parking lot and was struck by another vehicle traveling north on Highway 87. This vehicle had the right-of-way.
A toxicology report indicated that WHITFORD had a BAC of .265 and screened positive for both opiates and THC. The crash occurred within the exterior boundaries of the Rocky Boy's Indian Reservation.
As a result of the crash, a passenger in the other vehicle was seriously injured. The passenger was diagnosed with a hip fracture and required hospitalization.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that WHITFORD will likely serve all of the time imposed by the court. In the federal system, WHITFORD does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation, Hill County Sheriff's Office, and the Rocky Boy's Police Department.
Texas Businessman Admits to Stealing Millions from InvestorsRead the Press Release
SAN JOSE – Keven Chen Chieh Yang pleaded guilty in federal court in San Jose yesterday to defrauding millions from investors of his West Texas cotton businesses, United States Attorney Melinda Haag announced.
In pleading guilty, Yang admitted to making false, material statements causing several people to invest more than $5,000,000 in “cotton recycling businesses” located in the Lubbock, Texas area. Yang’s companies included WestCal, Triangle SuperGin, and OK Sourcing, among others. The investors resided in California, North Carolina, and China, among other places. Yang promised to invest the money in the businesses. Rather than doing so, however, Yang spent millions at casinos and diverted funds to offshore accounts.
Yang, 42, a citizen of Taiwan, Republic of China, and a former resident of Roland Heights, California, was indicted by a federal Grand Jury on July 13, 2011. He was charged with seven counts of wire fraud, in violation of 18 U.S.C. § 1343. Under the plea agreement, Yang pleaded guilty to three counts of wire fraud. Yang is currently in custody in San Jose.
Yang’s sentencing hearing is scheduled for November 12, 2013, before The Honorable Ronald M. Whyte, U.S. District Court Judge, in San Jose. The maximum statutory penalty for each count in violation of 18 U.S.C. § 1343, is 20 years imprisonment. Yang also agrees to pay restitution to the victims in an amount not less than $3,444,000, as determined by the Court. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Daniel Kaleba and Special Assistant U.S. Attorney Edward Fluet are prosecuting the case with the assistance of Nina Burney and Lakisha Holliman. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Tarrant County Man Sentenced to 78 Months in Federal Prison for Possessing Child PornographyRead the Press Release
Defendant Had Flash Drive Containing Numerous Images and Videos of Child Pornography in Pants Pocket When Arrested for Traffic Violation
FORT WORTH, Texas — Kenneth David Greer, 42, of North Richland Hills, Texas, was sentenced today by U.S. District Judge John McBryde to 78 months in federal prison following his guilty plea in March 2013 to one count of possession of child pornography. Greer has been in custody since his arrest in February 2013. 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, an officer with the Bedford Police Department stopped Greer when he ran a stop sign in January 2013. He had no driver’s license and a search incident to his arrest led to the discovery of a flash drive in his pants pocket that was found to contain numerous images and videos of child pornography.
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 the Bedford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney A. Saleem prosecuted.
Tallahassee Man Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
TALLAHASSEE B Phillip Wayne Mathenia, 63, of Tallahassee, was sentenced yesterday to serve 120 months in federal prison, after pleading guilty on May 10, 2013, to one count of possession of child pornography. The result of the sentencing hearing was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
In 2004, Mathenia was convicted of receiving and possessing child pornography and was sentenced to serve 96 months imprisonment, followed by three years of supervised release. After his release from federal prison, Mathenia was again found in possession of child pornography in October 2012, during a search of his residence conducted by the United States Probation Office. Mathenia possessed hundreds of images of child pornography contained in several computers as well as in books, magazines, and 8 millimeter films that appeared to be decades old. Investigators also found written stories describing adults performing sex acts on children. Mathenia also possessed thousands of computer generated images and cartoon drawings depicting children and infants engaged in sexual activity, including child rape, bondage, torture, and bestiality.
Because of his prior conviction, Mathenia was sentenced to serve a mandatory minimum term of 10 years. He was also sentenced to eight months of incarceration on a violation of supervised release. After his release from federal prison, Mathenia will be placed on supervised release for the rest of his life.
United States Attorney Marsh praised the United States Probation Office, agents of the U.S. Immigration and Customs Enforcement’s Homeland Security and Investigations, and the Leon County Sheriff’s Office Internet Crimes Against Children, Computer Forensics/Digital Evidence Recovery Unit for their hard work, dedication and expertise in the investigation and prosecution of this case.
Marsh said, "Protecting our children from the permanent scars left behind when this kind of exploitation occurs is critically important work of the Department of Justice and this Office. This prison sentence should send a strong message of deterrence, and also provides security and justice for the victims of these crimes.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 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 provides federal, state, and local resources to 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.
The case was prosecuted by Assistant U.S. Attorney Corey J. Smith.
Swiss Lawyer Pleads Guilty in Manhattan Federal Court to Conspiring with U.S. Taxpayers to Evade Federal Income Taxes and File False Tax ReturnsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York,
announced that EDGAR PALTZER, a former partner at a Swiss law firm (the “Swiss Law Firm”), pled guilty today in Manhattan federal court to conspiring with U.S. taxpayer-clients and others to help U.S. taxpayers hide millions of dollars in offshore accounts from the IRS, and to evade U.S. taxes on the income earned in those accounts. PALTZER, who was originally charged in April 2013 along with his co-defendant Stefan Buck, was arrested at John F. Kennedy Airport in August 2013. He pled guilty before U.S. Magistrate Judge Ronald L. Ellis.
According to the Superseding Information, the Indictment, statements made during the plea proceeding, and other documents filed in Manhattan federal court:
PALTZER is a U.S.-trained lawyer who began to practice at the Swiss Law Firm in 1998, in the fields of international private client work, wealth transfer planning, successions, trusts and foundations, and eventually became a partner. PALTZER is also licensed to practice in New York State.
United States taxpayers are required to report on their individual tax returns the existence of any foreign bank account that holds more than $10,000 at any time during a given year, as well as any income earned in such accounts.
PALTZER conspired with various U.S. taxpayers and others to ensure that their clients could hide their Swiss bank accounts and the income generated in them from the IRS. PALTZER, acting as a financial intermediary, helped U.S. taxpayers maintain undeclared assets in Swiss banks by, among other things, working with these U.S. taxpayers to create and maintain sham foundations and other entities to nominally hold the U.S. taxpayers’ accounts in Swiss banks. When certain Swiss banks required that these U.S. taxpayers close their accounts, PALTZER worked with these U.S. taxpayers and others to move their accounts to other Swiss banks that were still willing to maintain accounts for U.S. taxpayers with undeclared assets.
PALTZER also helped to repatriate funds to the U.S. taxpayers from their undeclared accounts in Switzerland in ways that were designed to ensure that U.S. authorities would not discover these undeclared accounts. For example, PALTZER helped a U.S. taxpayer repatriate assets in the form of jewelry in order to avoid detection of an account in Switzerland.
PALTZER, 56, a dual U.S.-Swiss citizen, pled guilty pursuant to a plea agreement to one count of conspiracy charging him with conspiring with U.S. taxpayers and others to evade federal income taxes and file false tax returns. He faces a maximum sentence of five years in prison, and is scheduled to be sentenced before U.S. District Judge Victor Marrero on February 21, 2014.
Buck, PALTZER’s co-defendant, has not been arrested and remains at large. The charges against Buck are merely accusations and he is presumed innocent unless and until proven guilty.
Mr. Bharara praised the outstanding investigative work of the Internal Revenue Service, Criminal Investigation. He also thanked the Department of Justice’s Tax Division for their significant assistance in the investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Jason H. Cowley, Daniel W. Levy, David Massey, Sarah Paul, and Sarah McCallum are in charge of the prosecution.
U.S. v. Edgar Paltzer S1 Information
Sioux Falls Man Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that David Flute III, age 23, of Sioux Falls, South Dakota, appeared before U.S. District Judge Roberto A. Lange on August 13, 2013, and pled guilty to Failure to Register as a Sex Offender. This was Flute’s second conviction for failure to register.
The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; at least 5 years of supervised release, with a violation of a condition of release possibly resulting in 2 years of additional incarceration on any such revocation; a mandatory $100 special assessment to the Federal Crime Victims Fund; and restitution may also be ordered. If Flute commits a new felony violation of sexual abuse, sexual exploitation and other abuse of children, transportation for illegal sexual activity and related crimes, kidnapping or sex trafficking of children by force, fraud or coercion while on supervised release, he may be incarcerated for a mandatory minimum term of 5 years up to life for each violation.
Flute was previously convicted of Aggravated Sexual Abuse of a Child, which required him to register as a sex offender for life in the State of South Dakota.
On November 18, 2011, Flute was convicted of Failure to Register as a Sex Offender in U.S. District Court, District of South Dakota. Following his release from custody, he signed registration documents and updated his registration, as required by law. On April 10, 2013, Flute was terminated from his apartment and moved to another location. Between April 13, 2013 and May 17, 2013, Flute, did knowingly fail to register and update his registration as required by law, leading to his second conviction.
The investigation was being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Flute was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for October 9, 2013.Rochester Man Sentenced for Stealing Interstate Shipment from Rail CarRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Anthony J. Russell, 39, of Rochester, N.Y., who was convicted following a jury trial of conspiracy to steal an interstate shipment and theft of an interstate shipment, was sentenced to 15 months in prison and ordered to pay $4,669.26 in restitution by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that on June 30, 2009, Russell, along with co-conspirators Richard E. Riedman, Anthony Toscano and Timothy Stone, stole more than 17 gross tons of a high-grade scrap steel from a railcar at a CSXT rail yard in Batavia, N.Y. Russell and his co-conspirators used a logging truck to remove the scrap steel from the railcar, wore dark clothing and used lookouts to avoid detection by law enforcement authorities and pedestrians, and used two-way radios to communicate with each other during the theft. The defendant and his co-conspirators were caught by members of the Genesee County Sheriff's Office in the logging truck and a pick-up truck as they left the scene of the theft in the early morning hours of June 30, 2009.
The bales were in the process of being shipped to a steel mill in Pennsylvania when Russell and his co-conspirators stole them. The defendant along with Riedman, Toscano and Stone were convicted after a two-week jury trial before Judge Siragusa in September 2012.
Judge Siragusa previously sentenced Toscano and Stone to 18 months and 12 months in prison respectively. Riedman is scheduled to be sentenced by Judge Siragusa on September 16, 2013.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel, and the Genesee County Sheriff's Office, under the direction of Sheriff Gary Maha.Rochester Man Indicted in Tax SchemeRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned a 117-count indictment charging Norman Perry, 50, of Rochester, N.Y., with mail fraud, aggravated identity theft and making false claims to the United States. The mail fraud charges carry a maximum penalty of 20 years in prison, making a false claim to the United States carries a maximum of five years in prison and aggravated identity theft carries a mandatory term of two years in prison, to be served consecutive to any other term of imprisonment. All of the charges also carry a fine of $250,000, or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that according to the indictment, the defendant posted advertisements in Rochester claiming that he could find lost or unclaimed funds. Individuals then provided Perry with their name, address and social security number and agreed to pay the defendant a fee, generally in the amount of $300, for each $1,000 check they received. In reality, Perry used the individuals information to prepare and file approximately 1,200 false and fraudulent tax returns with the Internal Revenue Service claiming refunds in excess of $1,000,000. The defendant stated that the individuals had qualified educational expenditures and were entitled to receive the American Opportunity Credit, a refundable tax credit for educational expenses. None of the individuals were students, none had incurred any educational expenditures and none provided such information to Perry.
The Indictment is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service - Criminal Investigation, under the direction of Special Agent In Charge Toni Weirauch.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Rapid City Man Sentenced for Not Updating Sexual Offender RegistrationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Box Elder, South Dakota, man convicted of Failure to Register was sentenced on August 13, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Seth Peter Between Lodges, age 31, was sentenced to 12 months and 1 day of imprisonment, 5 years of supervised release, and was ordered to pay $100 to the Federal Crime Victims Fund.
From July 24, 2012, to November 19, 2012, Between Lodges failed to update his sexual offender registration as required. He pled guilty on March 28, 2013.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.Planned Parenthood Pays $4.3 Million to Settle Allegations of Unnecessary Medical CareRead the Press Release
Department of Justice
Office of Public AffairsLUFKIN, Texas – Houston-based Planned Parenthood Gulf Coast has paid $4.3 million to resolve civil allegations under the False Claims Act in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
The government alleges that between 2003 and 2009, Planned Parenthood Gulf Coast billed and was paid by government programs, Texas Medicaid, Title XX, and the Women’s Health Program, for certain items and services related to birth control counseling, STD testing and contraceptives when such items and services were either not medically necessary, not medically indicated or not actually provided. Title XX is funded by the federal government while Texas Medicaid and the Women’s Health Program are funded jointly by the federal government and the State of Texas.
Of the $4.3 million settlement, the federal government will receive $3,594,604 and the State of Texas will receive $705,396. The settlement resolves a False Claims Act lawsuit filed in the Eastern District of Texas by Karen Reynolds, a former employee of Planned Parenthood Gulf Coast. The whistleblower or qui tam provisions of the False Claims Act permit the relator to obtain a portion of the proceeds obtained by the government. As part of today’s resolution, Reynolds will receive $1,247,000.
“We are very pleased to settle this matter for an amount of money that addresses what was, in the Government’s view, an abuse of programs that are extremely important to the well-being of many American women,” said U.S. Attorney Bales. “We will remain ever vigilant to protect the interests of American taxpayers and the integrity of the Medicare and Medicaid health programs. I am particularly grateful to the whistleblower for bringing the matter to our attention.”
The claims settled by this agreement are allegations only; there has been no determination of liability.
This case was investigated by the Texas Attorney General’s Civil Medicaid Fraud Division and prosecuted by Assistant U.S. Attorney Kevin McClendon.
New Jersey Man Pleads Not Guilty to Transporting Minor to Engage in Criminal Sexual ActivityRead the Press Release
PROVIDENCE, R.I. – Daniel Berger, 27, of Haskell, New Jersey, pleaded not guilty in U.S. District Court in Providence, R.I., today to a federal indictment charging him with one count of transportation of a minor with intent to engage in criminal sexual activity, announced United States Attorney Peter F. Neronha; Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI; Portsmouth, R.I., Acting Police Chief Jeffrey Furtado; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
According to information presented to the court, it is alleged that on July 24, 2013, Berger traveled from New Jersey to Rhode Island to meet with a minor female he befriended on the Internet. It is alleged that the defendant transported the minor to his residence in Haskell, New Jersey, with the intent to engage in criminal sexual activity.
Responding to an Amber Alert issued in Rhode Island for the young girl, local, state and federal law enforcement in Rhode Island and New Jersey worked collaboratively and located the victim in New Jersey. FBI agents from Newark assisted by local and state law enforcement officers recovered the victim shortly after midnight at Berger’s residence.
Berger was detained in New Jersey on a federal criminal complaint issued in the District of Rhode Island on a charge of transportation of a minor with intent to engage in criminal sexual activity. He was transported to Rhode Island on July 29, 2013, by the United States Marshals Service and was ordered detained following an initial appearance on July 30, 2013, in U.S. District Court in Providence.
An indictment is merely an allegation 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. If convicted of transportation of a minor with intent to engage in criminal sexual activity, Berger faces statutory penalties of 10 years to life in federal prison, up to 5 years of supervised release and a fine of up to $250,000.
The case is being prosecuted by Assistant United States Attorneys Stephen G. Dambruch and Milind M. Shah.Portsmouth Police, Rhode Island State Police and FBI agents from Providence and Newark, N.J., were assisted by the New Jersey State Police and officers from the Ringwood, Wanaque, Paterson and Clifton, New Jersey, Police Departments.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]McLaughlin Man Sentenced for Lacey Act ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man convicted of Lacey Act Violations was sentenced on August 12, 2013, by U.S. District Judge Charles B. Kornmann.
The investigation was being conducted by the U.S. Fish & Wildlife Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Jeffrey Volk, age 43, was sentenced to 3 years of unsupervised probation, $2,000 in restitution, $1,000 fine with $750 due at sentencing, and a $25 special assessment to the Federal Crime Victims Fund. Volk’s hunting privileges were also revoked for 3 years.
Volk was charged by an Information on February 14, 2013, and pled guilty to said Information on May 9, 2013.
The charge stems from an incident in November 2008 wherein Volk illegally shot and killed an 8x6 mule deer in North Dakota. At the time Volk killed the deer, he knowingly did not have a North Dakota or a Standing Rock Sioux Tribe deer hunting license. After illegally killing the deer, Volk transported it into South Dakota in violation of state and federal laws. Volk also admitted to killing one other deer in North Dakota and transporting it into South Dakota.Mason City Bank Teller Pleads Guilty to EmbezzlementRead the Press Release
A woman who embezzled nearly $70,000 from a Mason City bank pled guilty today in federal court in Cedar Rapids.
Margaret Marie (Peggy) Sheese, age 53, from Mason City, Iowa, was convicted of one count of embezzlement by a bank employee.
In a plea agreement, Sheese admitted that, between about October 2011 and January 2013, she stole $69,200 from Northwood State Bank in Mason City. At the time, Sheese was a teller at the bank. Sheese admitted making twenty-nine secret withdrawals from accounts belonging to a particular bank customer. Sheese altered the bank’s records to falsely show that the bank customer’s mailing address had changed to a Post Office Box under Sheese’s control. By changing the mailing address, Sheese caused the bank to send the customer’s account statements to Sheese rather than to the customer.
Sheese also admitted that, on January 15, 2013, she stole $2,000 in cash from the bank.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Sheese remains free on bond pending sentencing. Sheese faces a possible maximum sentence of thirty years’ imprisonment, a $1,000,000 fine, and five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Peter Deegan and was investigated by the Mason City Police Department and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-3026 LRR.
Mark Edwin Abresch Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 16, 2013, before U.S. District Judge Dana L. Christensen, MARK EDWIN ABRESCH, a 54-year-old resident of Great Falls, was sentenced to a term of:
- Prison: 72 months
- Special Assessment: $100.00
- Supervised Release: 5 years
ABRESCH was sentenced in connection with his guilty plea to conspiracy to possess with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
During January 2012, law enforcement was alerted to a methamphetamine distribution ring from Washington state to Great Falls.
In June 2012, detectives learned that ABRESCH made repeated trips from Great Falls to Washington to obtain methamphetamine to re-sell in Great Falls.
On June 29, 2012, a CI (confidential informant) informed the drug task force that ABRESCH was returning to Great Falls from Washington with methamphetamine. The task force arranged for a controlled drug buy from ABRESCH in Great Falls. The CI purchased methamphetamine. The CI then continued to make numerous controlled drug buys from ABRESCH over the next few days.
Law enforcement located ABRESCH's car in early July 2012 and the task force tracked his car from Great Falls to Spokane, Washington. The car stayed in Spokane for less than two hours before returning to Great Falls. Law enforcement initiated a traffic stop of the car just outside of Great Falls and they obtained two ounces of methamphetamine from ABRESCH. He then told law enforcement he had traveled to Spokane to buy methamphetamine from "Bert." He had been supplied by Bert, who was identified as Robert Boucher, since February or March 2012. In total, ABRESCH believed he had obtained and distributed approximately ten ounces of methamphetamine that he received from Boucher.
ABRESCH told law enforcement that Boucher provided him with a GPS system in order for him to find Boucher's house in Spokane. Once ABRESCH obtained the methamphetamine from Boucher, he would sell the methamphetamine by the gram for $100 around Great Falls. Boucher sold the methamphetamine to ABRESCH for $1,400 per ounce.
ABRESCH and Boucher also dealt methamphetamine with Ron Leeson and Tammy Lapie from Lapie's house in Great Falls. The methamphetamine dealing continued into the fall of 2012.
Robert Boucher, Ron Leeson, and Tammy Lapie pled guilty to federal charges.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that ABRESCH will likely serve all of the time imposed by the court. In the federal system, ABRESCH does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the High Intensity Drug Trafficking Area (HIDTA) Task Force - Russell County Drug Task Force.
Manhattan U.S. Attorney Announces Forfeiture of Chinatown Building That Housed Illegal Gambling OperationsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today the settlement of a civil forfeiture action against a six-story Chinatown building, appraised at approximately $17 million, located at 35-37 East Broadway (the “Building”) in New York City. The settlement between the United States and the owner of the Building, Won & Har Realty Corporation (“Won & Har”) followed a ruling, by U.S. District Judge Harold Baer, Jr., that the Building was subject to forfeiture because it had been used in furtherance of illegal gambling and Won & Har was not an innocent owner. Judge Baer also approved today’s settlement.
According to public documents filed in Manhattan federal court:
For at least the two years prior to the filing of a civil forfeiture complaint in May 2012, the Building consistently hosted a group of illegal gambling operators offering various gambling options, including pai gow poker and computer-based slot machine games. For nearly a year after a search conducted by law enforcement in 2011, which resulted in the seizure of hundreds of thousands of dollars in gambling proceeds, illegal gambling continued to be conducted openly in the Building, within full view of any passersby in the Building’s public hallways. In addition, a large sign advertising gambling was displayed on the front of the Building.
In its ruling, the Court rejected Won & Har’s “innocent owner” defense, finding that despite Won & Har’s knowledge of the ongoing gambling in the Building, the company failed to take all reasonable steps to terminate the illegal conduct. The Court cited Won & Har’s failure to investigate whether gambling was continuing in the Building in drawing the conclusion that Won & Har was willfully blind to the illegal use of its Building.
Pursuant to the terms of the agreement, Won & Har will forfeit the Building to the United States. The United States will sell the Building, retain 65% of the proceeds of the sale after accounting for the costs of selling the Building, and return the remainder of the proceeds to Won & Har.
Mr. Bharara praised the efforts of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) New York Asset Identification and Removal Group, HSI New York’s Gang Unit, the New York City Police Department’s (NYPD) Manhattan Vice Unit, NYPD’s Asset Forfeiture Unit, and U.S. Customs and Border Protection’s Air Unit. He also thanked the New York County District Attorney’s Office for their assistance.
Assistant United States Attorneys Alexander J. Wilson and Christine I. Magdo are in charge of the civil forfeiture action.
U.S. v. 35-37 Settlement PR Stipulation and Order of Settlement
Man Indicted on Drug ChargesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Wesley White, also known as “Westside,” age 38, of Valdosta, Georgia was indicted on August 14, 2013, by the federal grand jury for the offenses of Possession with Intent to Distribute Cocaine Base (crack cocaine), Possession with Intent to Distribute Cocaine, and Possession with Intent to Distribute Marijuana.
If convicted, Mr. White faces ten (10) years to life in prison on the charge of Possession with Intent to Distribute Crack with a possible fine of $8,000,000; up to thirty (30) years in prison and a $2,000,000 fine for the offense of Possession With Intent to Distribute Cocaine; and up to (10) years in prison and a $500,000 fine for the offense of Possession With Intent to Distribute Marijuana.
An indictment is only an accusation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt at trial.
The case was investigated by the Federal Bureau of Investigation Southwest Georgia Gang Task Force, made up of officers and agents of the FBI, Lowndes County Sheriff’s Office, Valdosta Police Department, Colquitt County Sheriff’s Office, Moultrie Police Department, and
Thomasville Police Department. The case is being prosecuted by Assistant United States Attorney Robert D. McCullers.Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Louis Michael Healy Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 15, 2013, before Chief U.S. District Judge Dana L. Christensen, LOUIS MICHAEL HEALY, a 40-year-old resident of Hays and an enrolled member of the Fort Belknap Tribes, was sentenced to a term of:
- Prison: 327 months
- Special Assessment: $300.00
- Supervised Release: 20 years
HEALY was sentenced after a federal district court trial in which he was found guilty of assault resulting in serious bodily injury, aggravated sexual abuse, and abusive sexual contact.
At trial, the following evidence and testimony was presented to the jury.
On October 13, 2012, the victim drove HEALY to the store where he bought several black cans of Smirnoff. After leaving the store, the victim drank a little from a can, and HEALY drank one can very quickly. They drove to a hill where HEALY drank two or three more cans of Smirnoff. The victim drank an additional can. HEALY then asked the victim to marry him. The victim replied that she would not marry HEALY unless he could prove he had ceased speaking with his ex-girlfriend.
HEALY and the victim returned to his home on the Fort Belknap Indian Reservation. They turned on HEALY's computer and the victim read e-mails that indicated HEALY was still speaking with his ex-girlfriend. The victim was sitting in a rolling computer chair. She became upset and HEALY grabbed her neck with his right hand and pushed her across the floor in the chair. Due to the force of the push, she crashed and hit her head. When she awoke, HEALY had his hand on her throat applying pressure. He then walked to the kitchen and grabbed a knife. HEALY stood over the victim, placed the knife to her throat, and told her to get up.
The victim began to cry, her throat hurt, and HEALY told her to get into the bedroom. He instructed her to lie down and said, "if you don't stop **** crying, you know what you're going to get and we both aren't coming out of the room, so stop **** crying." At that point, the victim believed HEALY was going to kill her. The victim continued to complain that her throat hurt so HEALY went to the kitchen where he returned with water and a popsicle. She then began to vomit due to the drinking or strangulation she had experienced. According to the victim, she spoke with HEALY for a little bit while sitting on the bed until HEALY grabbed her and sexually assaulted her while she continued to tell him to stop. HEALY then told the victim to get back on the computer and instructed her to tell his ex-girlfriend that the victim was going to leave her alone.
HEALY went to the bathroom after this instruction. The victim decided this was her chance to escape and she ran out of the house to the next door neighbor's home. HEALY realized the victim had run away and he chased after her, but she got inside the neighbor's home safely.
The neighbors testified that they had awoken at approximately 4:00 a.m. to someone pounding on the door. The victim was at the door very upset and trying to get inside. The victim was crying and saying her boyfriend was trying to kill her. He had held a knife to her throat and she said, "he's going to kill me."
When law enforcement arrived at HEALY's home, HEALY was walking and carrying two black bags. HEALY was ordered to stop and HEALY turned around and yelled, "**** you." The police ordered HEALY to the ground and pepper sprayed him in an effort to subdue him.
An ambulance arrived and transported the victim to the hospital where a nurse immediately assessed that the victim had trouble swallowing due to strangulation. The nurse noted the left side of the victim's throat had a few areas of linear petechial, which is bruising around the throat. She applied ice and the victim told the nurse she was sexually assaulted and strangled. The hospital also performed a sexual assault examination. The victim ended up returning to the hospital a few days later due to continued throat pain and inability to swallow.
Assistant U.S. Attorney Jessica A. Betley prosecuted the case for the United States.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HEALY will likely serve all of the time imposed by the court. In the federal system, HEALY does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Last Defendant in Operation Spitter Is Sentenced to 8 Years in Federal Prison for Distribution of Heroin and CocaineRead the Press Release
DENVER – Elder Geovany Sabillon-Umana, age 43, of Denver, Colorado was sentenced by U.S. District Court Judge Wiley Y. Daniel to serve 96 months (8 years) in federal prison for conspiracy to distribute heroin and cocaine, and money laundering, federal and state authorities announced. Following his prison sentencing, Umana was ordered to spend 5 years on supervised release. Umana pled guilty to the above charges on October 23, 2012. Other key co-conspirators of “Operation Spitter” were sentenced by Judge Daniel and received the following sentences:
- Jose Lopez-Luna pled guilty to drug charges & money laundering and was sentenced to 192 months, followed by 5 years supervised release.
- Yoni Dimar Mas-Cruz pled guilty to drug charges and was sentenced to 72 months, followed by 5 years supervised release.
- Nandi Evelio Arrazola pled guilty to drug charges and was sentenced to 70 months, followed by 5 years supervised release.
- Elvin Eduardo Cruz-Cruz pled guilty to drug charges and was sentenced to 48 months, followed by 5 years supervised release.
- Corina Terrones was indicted on drug charges and money laundering and is currently a fugitive.
According to the statement of facts contained in Umana’s plea agreement, investigators from the Front Range Task Force (FRTF) which included DEA and IRS CI agents conducted an investigation into the Jose Lopez- Luna, aka Gordo, drug distribution organization (DTO) since approximately June 2011. The Gordo DTO is responsible for the distribution of multi-pound quantities of heroin and cocaine in the Denver metropolitan area. The investigation led investigators to Umana, an active narcotics customer and narcotics sub-distributor for the Gordo DTO.
From July 2011 through April 2012, the investigation disclosed Umana distributed narcotics and assisted the Gordo DTO by arranging or providing the means of transportation of drugs, advising Jose Lopez-Luna in the narcotics business, preparing documents for DTO automobile registration and insurance, assisting with acquisition of mobile phones, smart phones and services, assisting with Jose Lopez-Luna's housing, offering to obtain a firearm for Jose Lopez-Luna, and sometimes sourcing the Gordo DTO with cocaine drug supplies obtained from another DTO.
In late spring of 2011 the FRTF investigators began their investigation by making controlled purchases of heroin from lower level traffickers including Yoni Dimar Mas-Cruz. Investigators conducting surveillance determined that the person eventually identified as Jose Lopez-Luna was the source of the drug supply. The street level distributors are sometimes called “Spitters” because they keep balloons of heroin in their cheeks and spit them out into their hands when, for example, a customer comes to buy a $20 rock of heroin, giving the OCDETF case name “Operation Spitter.”
Searches conducted in April of 2012 resulted in the recovery of vehicles, more than 20 ounces of heroin, a quantity of cocaine, and approximately one pound of methamphetamine, cell phones, drug proceeds in the form of cash, and one firearm. Over the course of the investigation 2,101 grams of heroin, 2,383 grams of cocaine and 445 grams of methamphetamine were seized by law enforcement officers.
This case was investigated by the Drug Enforcement Administration (DEA), IRS – Criminal Investigation Division, and the Front Range Task Force which includes members of the DPD and the Arapahoe County Sheriff’s Department.
The case was prosecuted by Assistant U.S. Attorney Guy Till of the U.S. Attorney’s Office.
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Kentucky Resident Charged with Tax Evasion and Other Tax Fraud ChargesRead the Press Release
WASHINGTON, DC - Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division, and Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, jointly announced today that James S. Faller II, of Russell Springs, Ky., was indicted by a federal grand jury in Bowling Green, Ky. Faller, a consultant and private investigator, is charged in an eleven count indictment with obstructing the internal revenue laws, evading his individual income taxes, making and subscribing to a false form that he filed with the Internal Revenue Service (IRS) and failing to file his individual income tax returns.
The indictment, returned on Wednesday, alleges that Faller obstructed the IRS’s ability to collect payment of a substantial penalty he owed to the government and the IRS’s ability to identify his income from 2006 through 2009. According to the indictment, Faller evaded the payment of a $216,000 penalty related to unpaid employment taxes of Call Center Communications Inc., of which Faller was the president. In addition, Faller was charged with evading his individual income taxes from 2006 through 2009. He allegedly failed to report more than $960,000 of income during this four-year period and committed various affirmative acts of evasion.
Faller faces a maximum punishment of three years in prison for the charge of obstructing the internal revenue laws; five years for each count of evading his individual income taxes; three years for making and subscribing to a false form that he filed with the IRS; and one year for each count of failing to file his individual income tax returns. He faces a maximum fine of $100,000 on each count of failing to file his income tax returns and $250,000 for each of the other counts. An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case resulted from an investigation by special agents of the IRS - Criminal Investigation. Tax Division Trial Attorney Thomas Voracek and Assistant U.S. Attorney Lee Gentry are prosecuting the case.
Jourden St. Marks Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 15, 2013, before Chief U.S. District Judge Dana L. Christensen, JOURDEN ST. MARKS, a 23-year-old resident of the Rocky Boy's Reservation and an enrolled member of the federally recognized Chippewa Cree Indian Tribe, was sentenced to a term of:
- Prison: 33 months
- Special Assessment: $100.00
- Supervised Release: 3 years
ST. MARKS was sentenced in connection with his guilty plea to assault resulting in serious bodily injury.
In an Offer of Proof filed by Assistant U.S. Attorney Danna R. Jackson, the government stated it would have proved at trial the following:
On January 1, 2013, ST. MARKS caused the victim, a 1-month old baby at the time, to incur serious injuries. ST. MARKS admitted that after trying to soothe the baby, he became frustrated with her and threw the baby at the end of the bed. According to ST. MARKS, the baby bounced off the pillows at the end of the bed and landed on the linoleum. The incident occurred within the exterior boundaries of the Rocky Boy's Indian Reservation.
As a result, the baby was transported to Northern Montana Hospital and then transported by Mercy transport to the pediatrics unit at Benefis Hospital in Great Falls. The infant suffered severe swelling to the face, her eyes were swollen and she had petchia on the eyes, around her nose, and inner portion of her ear. She had substantial bruising to the face, from the top of her sternum down to her belly button, on the right side of her rib cage. The infant's gums, tongue, and inner cheeks of her mouth were bruised. There was dried blood inside her mouth. A CT scan showed that her brain had bled. Her fingernails were bluish in color, indicating a lack of oxygenation.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that ST. MARKS will likely serve all of the time imposed by the court. In the federal system, ST. MARKS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Jacksonville Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
Jacksonville, FL - Acting United States Attorney A. Lee Bentley, III announced that Dwaine Charles Idleman (66, Jacksonville) pleaded guilty yesterday to receiving images and videos depicting child pornography over the Internet. He faces not less than 5 years, up to 20 years in federal prison, and a potential life term of supervised release. A sentencing date has not yet been set. Idleman was named in a criminal information charging him with the offense on August 5, 2013.
According to court documents, a special agent with U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) began an undercover operation to identify persons using the Internet to receive and share child pornography. The agent identified a particular host computer using a particular internet protocol (IP) address that was sharing images of child pornography on a file sharing network. Further investigation revealed that the subscriber was Dwaine C. Idleman in Jacksonville.
On June 28, 2012, HSI special agents and other law enforcement officers executed a federal search warrant at the Idleman residence in Jacksonville. Idleman was present, and agreed to speak with the agents. Idleman stated, among other things, that he had come across pornography sites with people that were “too young” but that he “got out of it.” Idleman stated that he had a particular file sharing program, but does not keep it installed on his computer. When told that the agents knew that he was downloading child pornography files into his residence and that he was sharing it back out of the residence, Idleman stated, “I’m not sharing it; I didn’t think I was, and I didn’t know that I was keeping it, I know I got a problem and if this escalates into an arrest, my life is over.”
While at Idleman's residence, the agents seized his laptop computer. Subsequent forensic analysis revealed that it contained at least four images and one video depicting child pornography. The analysis also showed Idleman downloaded child pornography on the morning of June 28, 2012, just before the arrival of law enforcement.
The case was investigated by HSI, and the Jacksonville Sheriff's Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
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.
Iowa and California Men Sentenced for Kidnapping, Firearm Offenses and Controlled Substance ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux City, Iowa, man convicted of Kidnapping and Brandishing a Firearm During a Crime of Violence, and a Homeland, California, man convicted of Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance, and Brandishing a Firearm During a Crime of Violence, were sentenced on August 12, 2013, by U.S. District Judge Charles B. Kornmann.
Marco Uribe, age 26, of Sioux City, Iowa, was sentenced to a total of 215 months of imprisonment, with the Court ordering that 131 months on the kidnapping charge and 84 months on the firearm charge be served consecutively; 5 years of supervised release on each count to be served concurrently; and a $200 special assessment to the Federal Crime Victims Fund. The Court also ordered forfeiture of a 2003 Jaguar-XJ and 3 firearms.
Jose “Ivan” Garcia, age 26, of Homeland, California, was sentenced to a total of 130 months of imprisonment, with the Court ordering that 46 months on the conspiracy charge and 84 months on the firearm charge be served consecutively; 3 years of supervised release on each count to be served concurrently; and a $200 special assessment to the Federal Crime Victims Fund.
Uribe and Garcia were initially indicted by a federal grand jury on February 14, 2012. Uribe pled guilty on May 9, 2013, to a Superseding Indictment charging him with Kidnapping and Brandishing a Firearm During a Crime of Violence. Garcia pled guilty on May 20, 2013, to a Superseding Information charging him with Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance and Brandishing a Firearm During a Crime of Violence.
In 2011, Uribe brought Garcia to South Dakota to become a leader within Uribe’s drug distribution operation. In support of the conspiracy, Garcia hosted a party at his residence around December 23, 2011, where he provided cocaine to some of the people in attendance. At the party and elsewhere, Garcia supervised and recruited others to distribute cocaine. The drug quantity attributable to Garcia based on his role in the conspiracy was at least 50 but less than 100 grams of cocaine.
Following the party, Garcia’s trailer in Mobridge was burglarized and a large quantity of cocaine and methamphetamine and several thousand dollars in cash was stolen. Uribe, and others, kidnapped several individuals they suspected of the break-in and theft and took them to another location, where the victims were assaulted with shod feet and hit with firearms. Uribe stuck his gun in one victim’s mouth while questioning him about the stolen drugs and cash. The victims denied knowing anything about the thefts. The actual burglars were later apprehended.
On or about December 27, 2011, Garcia and others, as part of their continuing efforts to discover who had broken into Garcia’s residence and stole the drugs, travelled to a residence in Wakpala, South Dakota. When an occupant opened the door, Garcia pulled out a gun and asked for Dustin Swimmer. The door was slammed in his face and he yelled for his “stuff” back. Garcia got back into his vehicle with the driver, and fired shots at the residence as they drove away.
Also charged in this case were 5 other defendants:- Tim Stout, age 38, convicted of Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance, was sentenced on September 17, 2012, to 151 months of custody and 3 years of supervised release.
- Nathan Martin, age 31, convicted of Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance, and Assault with a Dangerous Weapon, was sentenced on January 4, 2013, to 105 months of custody and 6 years of supervised release.
- Amber Long Chase, age 33, convicted of Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance, was sentenced on January 4, 2013, to 105 months of custody and 6 years of supervised release.
- Anthony Brown Otter, age 25, convicted of Assault with a Dangerous Weapon and Brandishing a Firearm During a Crime of Violence, was sentenced on January 4, 2013, to 125 months of custody and 3 years of supervised release.
- Dustin Swimmer, age 27, convicted of Possession with Intent to Distribute a Controlled Substance, was sentenced on May 13, 2013, to 37 months of custody and 3 years of supervised release.
An eighth defendant, Andrew Kills Crow, age 22, is scheduled to be sentenced on October 7, 2013. Kills Crow pled guilty on May 28, 2013, to two counts of Assault with a Dangerous Weapon.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, Bureau of Indian Affairs, Mobridge Police Department, and the Federal Bureau of Investigation. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Uribe and Garcia were immediately turned over to the custody of the U.S. Marshals Service.Illegal Alien Sentenced to 24 Months for Unlawfully Reentering U.S. Following Prior Deportation and Conviction for Aggravated Sexual BatteryRead the Press Release
ALEXANDRIA, Va. – William Orlando Contreras-Barrera, 32, an illegal alien of Guatemala, was sentenced today to 24 months in prison, followed by three years of supervised release, for illegally reentering the United States after previously being removed following a conviction for an aggravated felony.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and John Torres, Special Agent in Charge, United States Department of Homeland Security, Homeland Security Investigations (HSI), Washington, D.C., made the announcement after sentencing by United States District Judge Anthony J. Trenga.
On May 9, 2013, Contreras-Barrera was found guilty of illegally re-entering the United States. According to court documents, Contreras-Barrera is a citizen of Guatemala who has unlawfully entered the United States on at least two occasions. In August 2009, Contreras-Barrera was convicted of aggravated sexual battery in Arlington, Virginia and was subsequently deported to Guatemala.
This case was investigated by HSI and Special Assistant United States Attorneys John Sinfelt and Sarah Devlin prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.High-Ranking Member of Enterprise Involved in Massive Medicare Fraud Sentenced in Manhattan Federal Court to 125 Months in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ROBERT TERDJANIAN was sentenced yesterday to 125 months in prison for his role in a multi-million dollar Medicare fraud scheme, among other offenses including extortion and immigration fraud. TERDJANIAN pled guilty to racketeering in December 2011 before U.S. District Judge Paul G. Gardephe, who also imposed yesterday’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Robert Terdjanian and his many convicted co-conspirators were a cancer of fraud inside the Medicare system at a time of increasing scarcity in public resources. With his sentence, we continue our work to ensure that all those responsible for this reprehensible scheme are punished.”
According to the Indictment and other documents filed in this case:
From 2008 through 2010, TERDJANIAN participated in a nationwide Medicare scam that fraudulently billed Medicare for over $100 million. As part of the conspiracy, the defendant and others created “phantom clinic” health care providers that existed only on paper, had no doctors, and treated no patients. The total scheme involved at least 118 fraudulent Medicare providers that were located in approximately 25 states, and that submitted fraudulent bills for at least approximately $100 million, and received over $30 million in reimbursements from Medicare. TERDJANIAN directed the New York-based members of the enterprise in this scheme and other criminal conduct, including no-fault insurance fraud and access device fraud.
In addition to the prison term, Judge Gardephe sentenced TERDJANIAN, 40, of Brooklyn, New York, to three years of supervised release, and imposed a $100 special assessment. Judge Gardephe also ordered TERDJANIAN to forfeit $1,169.680.55.
Of the 28 defendants charged in U.S. v. Armen Kazarian, et al., 20 have now been sentenced. Four others have pled guilty and are awaiting sentencing. Charges have been dismissed against two defendants, and remain pending against two defendants. The charges pending against the two outstanding defendants are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Mr. Bharara thanked the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of Inspector General, the New York City Police Department, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations for their work in the investigation.
The prosecution is being handled by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Jennifer Burns, Arlo Devlin-Brown and Harris Fischman are in charge of the prosecution.
Harrold Man Pleads Guilty and Is Sentenced for Simple Assault by Striking, Beating and WoundingRead the Press Release
United States Attorney Brendan V. Johnson announced that Thomas Morgan, age 38, of Harrold, South Dakota, has pled guilty to an Information that charged him with Simple Assault and Assault by Striking, Beating and Wounding.
Morgan was sentenced on August 13, 2013, by U.S. Magistrate Judge Mark A. Moreno to 6 months of imprisonment on each count to be served consecutively, for a total custody sentence of 12 months; $528 in restitution; and a $20 special assessment to the Federal Crime Victims Fund.
The charges stem from an incident occurring on August 17, 2012, when several individuals ended up at Morgan’s home following a disagreement. Additional arguments ensued and Morgan got into his car and hit the victim with his vehicle. The victim hit the hood of Morgan’s car but was not seriously injured.
The investigation was conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Morgan was immediately turned over to the custody of the U.S. Marshals Service.Hagerstown Man Sentenced to 4 Years in Prison for Possessing Child PornographyRead the Press Release
Baltimore, Maryland –U.S. District Judge Richard D. Bennett sentenced James Andrew Wagner, age 43, of Hagerstown, Maryland, today to four years in prison, followed by 10 years of supervised release, for possession of child pornography. Judge Bennett ordered that upon his release from prison, Wagner must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the plea agreement, on April 7, 2011, an undercover FBI agent in Kansas City, Kansas, downloaded 16 images from Wagner, using a file sharing program connected to the internet. All of the files depicted minors engaging in sexually explicit conduct. On November 28, 2011, an undercover FBI agent in Baltimore used a file sharing program to download 58 files from Wagner that contained child pornography. On December 22, 2011, a search warrant was executed at Wagner’s home and agents seized computers and digital media. A review of the images on Wagner’s computers and other devices revealed well over 600 files of child pornography, separated into hundreds of folders organized by the name of the minor depicted in the files. At the time of the offense, Wagner was a civilian police officer at Fort Detrick.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted the case.
Fourteen More Army National Guard Recruiters and Soldiers<br /> Charged in Ongoing Bribery and Fraud InvestigationRead the Press Release
Fourteen current and former recruiters and soldiers of the U.S. Army National Guard have been charged in the Southern District of Texas for engaging in a multi-year scheme to defraud the U.S. Army National Guard Bureau, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
The cases against all 14 defendants arise from an investigation involving allegations that former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to illegally obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 25 individuals, 11 of whom have pleaded guilty.
According to court documents, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to Army National Guard soldiers who referred others to join the Army National Guard. Through this program, a participating soldier could receive up to $3,000 in bonus payments for referring another individual to join. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
In an indictment unsealed today in its entirety, Michael Rambaran, 50, of Pearland, Texas; and Edia Antoine, 27, Ernest A. Millien III, 49, and Christopher D. Renfro, 25, all of Houston, were charged with conspiracy, bribery, wire fraud and aggravated identity theft. According to court documents, between February 2008 and August 2011, Rambaran was a National Guard recruiter and Antoine, Millien and Renfro were recruiting assistants in G-RAP. Rambaran allegedly provided the names, addresses and Social Security numbers of potential soldiers to Antoine, Millien and Renfro so they could claim fraudulent recruiting referral bonus payments by falsely claiming they were responsible for referring those potential soldiers to join the military. The indictment alleges Antoine, Millien and Renfro paid kickbacks to Rambaran by providing a portion of the fraudulent bonus payments.
In a separate indictment unsealed on Aug. 9, 2013, Zaunmine O. Duncan, 37, of Austin, Texas, was charged with conspiracy, bribery, wire fraud, aggravated identity theft and witness tampering. According to court documents, between February 2008 and August 2010, Duncan, an Army National Guard recruiter, allegedly provided the personal identifiers of potential soldiers to four co-conspirators, identified as Recruiting Assistants 1 through 4, who used the personal identifiers to claim fraudulent recruiting referral bonuses through their G-RAP accounts. According to the indictment, Recruiting Assistants 1 through 4 paid kickbacks to Duncan by providing a portion of the fraudulent proceeds. The indictment also alleges Duncan and Recruiting Assistant 1, without permission or lawful authority, used the identity of a potential soldier to set up a G-RAP account through which Duncan and Recruiting Assistant 1 received additional fraudulent bonus payments. The indictment also charges Duncan with witness tampering, alleging Duncan instructed a witness, identified in the indictment as Recruiting Assistant 1, to make certain false exculpatory statements to federal law enforcement officers.
In another related but separate indictment also unsealed on Aug. 9, 2013, Jammie T. Martin, 36, and Michelle H. Davis, 32, both of Katy, Texas; and Danielle V. Applin, 27, of Harker Heights, Texas, were charged with conspiracy, bribery, wire fraud and aggravated identity theft. According to the indictment, from February 2009 through April 2011, Martin served as an Army National Guard recruiter and Applin and Davis served as recruiting assistants with the G-RAP. According to court documents, Martin allegedly provided the personal identifiers of potential soldiers to Applin and Davis so they could claim fraudulent recruiting referral bonus payments by falsely claiming they were responsible for referring the potential soldiers to join the military. The indictment alleges Applin and Davis paid kickbacks to Martin by providing a portion of the fraudulent bonus payments.
In addition, in the last three weeks, Melanie D. Moraida, 33, of Pearland, Texas; Elisha M. Ceja, 26, of Barboursville, W.Va.; Kimberly N. Hartgraves, 28, of League City, Texas; Lashae C. Hawkins, 27, of San Antonio; Annika S. Chambers, 27, of Houston; and Vanessa Phillips, 35, of Houston, were all charged in separate criminal informations with one count of conspiracy and one count of bribery.
A conviction for bribery carries as possible punishment a maximum penalty of 15 years in federal prison. Witness tampering and wire fraud, upon conviction, could each result in a maximum of 20 years imprisonment, while a conviction for the conspiracy charge carries a five-year maximum sentence. If convicted of aggravated identity theft, a defendant will also have to serve a mandatory penalty of two years in prison, which must be served consecutively to any other sentence imposed. All charges also carry a possible $250,000 maximum fine or twice the pecuniary gain or loss.
A criminal indictment or information is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
The cases are being investigated by special agents from the San Antonio Fraud Resident Agency of Army Criminal Investigation Command’s Major Procurement Fraud Unit. Trial Attorneys Edward J. Loya Jr., Brian A. Lichter, Sean F. Mulryne and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney John Pearson of the Southern District of Texas are prosecuting the case.Four Local Men Charged with Conspiracy to Distribute HeroinRead the Press Release
Urbana, Ill. – A September trial date has been set for four local men charged in federal court with conspiracy to distribute 100 grams or more of heroin in Champaign County. Three of the four charged in the indictment have been arrested: Clifford L. Brown, 34, of the 900 block of S. Lierman, Urbana, Ill.; Christopher N. Maze-Moore, 26, of the 300 block of Nelson Court, Champaign; and, Kavurante Derrez Pettigrew, 22, aka ‘Little D,’ of the 1300 block of N. Clock Street, Champaign. The fourth defendant, Daniel J. Hightower, 25, aka ‘Boogie,’ of the 1500 block of Kingsway, Champaign, remains a fugitive.
The indictment was unsealed last week following the arrest and initial appearances of the three defendants in custody before U.S. Magistrate Judge David G. Bernthal. Trial is scheduled on Sept. 23, 2013. Each has been ordered to remain detained in the custody of the U.S. Marshals Service.
The charges are the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation announced by U.S. Attorney Jim Lewis, Central District of Illinois. The DEA task force worked cooperatively with the Champaign Police Department and the Illinois State Police. Assistant U.S. Attorney Eugene L. Miller is prosecuting the case in the Central District of Illinois, Urbana Division.
The indictment, which charges the defendants with conspiracy to distribute heroin, alleges that from about September 2011 to February 2013, the four defendants conspired to possess with intent to distribute and to distribute more than 100 grams of heroin. Each defendant also faces an additional count of distribution of heroin.
If convicted, for the offense of conspiracy to distribute more than 100 grams of heroin, the statutory penalty is a mandatory minimum five years and up to 40 years in prison; if a defendant has one or more prior felony drug convictions, the penalty is 10 years to life in prison. For the distribution of heroin, the penalty is up to 20 years in prison if the defendant has no prior felony drug convictions; if the defendant has a prior felony drug conviction, the offense carries a penalty of up to 30 years in prison.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.In a separate, but related federal case, Mark M. Brown, 41, of Rantoul, Ill., was arrested and charged in February 2013, with possession of 100 grams or more of heroin with intent to distribute. On Jul. 8, 2013, Brown entered a plea of guilty to the charge, and sentencing is scheduled on Nov. 14, 2013. Brown remains in the custody of the U.S. Marshals Service.
Fort Mojave Man Pleaded Guilty to Second-degree Murder, Child Abuse, and AssaultRead the Press Release
PHOENIX, Ariz.–Matthew Smith, 31, of Mohave Valley, Ariz., pleaded guilty on Aug. 15, 2013 to Second-Degree Murder, Child Abuse, and Assault Resulting in Serious Bodily Injury, in federal district court in Phoenix. Sentencing is set before Judge Paul G. Rosenblatt on Nov. 4, 2013.
Between July 8, 2012 to July 11, 2012 on the Fort Mojave Indian reservation, Defendant Smith became angry with one of the minor children who lived in his home and he assaulted the child multiple times. The child died due to multiple blunt force traumas and other injuries. During the same period of time, Defendant also assaulted a second child who lived in the home and took the child to the bathroom, where the child remained behind a locked door for approximately two days without food or water. The second child was hospitalized for a significant period of time and survived, but sustained serious injuries. In investigating the death and assault of these two children, law enforcement officers observed a third child, who had a visibly distorted arm. It was determined that during the same July time period, Defendant assaulted the third child, who suffered a broken arm.
A conviction for Second-Degree Murder carries a minimum of 30 years in prison and a maximum penalty of life in prison, a $250,000 fine, or both. A conviction for Child Abuse carries a minimum of 10 years in prison, a maximum penalty of 24 years in prison, a $250,000 fine, or both. A conviction for Assault Resulting in Serious Bodily Injury carries a minimum of 10 years in prison and a maximum of life in prison.
The investigation preceding the indictment was conducted by the Federal Bureau
of Investigation and the Fort Mojave Police Department. The prosecution is being handled by Jennifer E. Green and Sharon K. Sexton, Assistant U.S. Attorneys, District of Arizona, Phoenix.CASE NUMBER: CR-12-8195-PCT-PGR
RELEASE NUMBER: 2013-067_SmithFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Fort Duchesne Man Sentenced to 57 Months in Federal Prison for Firearm ViolationRead the Press Release
Defendant Has Previous Federal Conviction for Voluntary ManslaughterSALT LAKE CITY – Gregory Chauncy Checora, age 36, of Fort Duchesne, Utah, will serve 57 months in federal prison for possession of a firearm following a felony conviction. U.S. District Judge Tena Campbell imposed the sentence Thursday in U.S. District Court. Checora, who is an enrolled member of the Ute Indian Tribe, will be on supervised release for 36 months when he finishes his prison sentence.
Checora pleaded guilty to the firearm charge in May. He admitted that between June 20-30, 2012, he had an EAA Witness .40 caliber handgun in his possession. As a convicted felon, federal law prohibits Checora from possessing a firearm.
Checora was convicted of voluntary manslaughter in U.S. District Court in October 1997. According to a plea agreement in that case, Checora and three others killed Benjie Murray during a July 1996 incident that occurred in what is known as the “Little Chicago” subdivision of Fort Duchesne within the boundaries of the Uintah-Ouray Reservation.
Criminal history is a factor in determining sentences in federal court. The manslaughter conviction, which is a crime of violence, was one factor Judge Campbell used in imposing a sentence at the high end of the sentencing guidelines. Checora also has a history of gang involvement.
Former Norfolk City Employee Sentenced for FraudRead the Press Release
NORFOLK, Va. – Patrick R. Lambert, 56, of Virginia Beach, Va., was sentenced today to 12 months in prison, followed by three years of supervised release, for fraud in connection with a local government receiving federal funds.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia and Royce E. Curtin, Special Agent in Charge, Federal Bureau of Investigation Norfolk Office, made the announcement after sentencing by Chief United States District Judge Rebecca Beach Smith.
Lambert pleaded guilty on May 9, 2013. According to court documents Lambert was a facilities maintenance supervisor with the City of Norfolk and was acquainted with Andrew T. Zoby, Jr., who had a plumbing contract with the City of Norfolk. Lambert owned a home and several rental properties in the Cities of Norfolk and Virginia Beach and at various times from approximately 2006 through 2011, would request that Zoby’s plumbing business perform certain work on the properties. Zoby’s employees performed the requested work which had a total value of $17,547.57. Lambert did not pay Zoby or his company for the work that was performed on these properties. In order to obtain reimbursement for these services, Zoby with the knowledge of Lambert, would submit fraudulent invoices for alleged plumbing services to the City of Norfolk. Lambert was aware of and acquiesced in the payment of these fraudulent invoices. As a result of this scheme, Lambert received free plumbing services in the approximate amount of $17,547.57 and Zoby was reimbursed this amount from the City of Norfolk funds. Zoby was sentenced to 15 months in prison on July 10, 2013. Zoby was also involved in a bribery scheme with another former city employee, Michael Brown, who is scheduled for sentencing September 25th, 2013.
This case was investigated by Federal Bureau of Investigation, Norfolk Office. Assistant United States Attorney Robert J. Seidel, Jr. prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former New Fairfield Resident Sentenced to 42 Months in Federal Prison for Trafficking MarijuanaRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that RAYMOND MASSAGLI, 31, formerly of New Fairfield, Conn. and Somerset, Mass., was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 42 months of imprisonment, followed by two years of supervised release, for trafficking marijuana.
According to court documents and statements made in court, this matter stems from a Drug Enforcement Administration and Connecticut State Police Statewide Narcotics Task Force investigation into a large-scale marijuana growing and trafficking organization that operated in the greater Danbury area and had ties to New York, Massachusetts, and Vermont. Between June 2011 and June 2012, the drug trafficking organization conspired to manufacture, sell, and distribute more than 1,000 kilograms of marijuana.
The investigation, which included the use of court-authorized wiretaps, revealed that Nicolas Calamaras of New Fairfield was distributing marijuana to numerous individuals in the Danbury area. Beginning in April 2012, investigators learned that MASSAGLI sold large quantities of marijuana to Calamaras, partnered with Calamaras to sell marijuana to co-defendant and Vermont resident Weston Robinson, bought marijuana plants from Calamaras to begin his own grow house operation, and conspired with Calamaras and others to expand their narcotics trafficking activities.
MASSAGLI was arrested on July 2, 2012. On May 29, 2013, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute more than 100 kilograms of marijuana.
MASSAGLI has been detained since July 16, 2013, after he violated conditions of his release and his bond was revoked.
Thirteen individuals were charged a result of the investigation, during which investigators seized marijuana, more than $520,000 in cash, 10 firearms, vehicles and real property.
As part of his sentence, MASSAGLI was ordered to forfeit his 2008 Nissan Titan SE pickup truck.
Calamaras has pleaded guilty and awaits sentencing. Robinson also pleaded guilty and, on July 31, 2013, he was sentenced to 12 months and one day of imprisonment.This matter is being investigated by the Drug Enforcement Administration and the Connecticut State Police Statewide Narcotics Task Force Northwest Office. The case is being prosecuted by Assistant United States Attorneys Tracy L. Dayton and David X. Sullivan.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Lorain County, Ohio, Corrections Officer Charged for Assaulting an InmateRead the Press Release
Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels, U.S. Attorney for the Northern District of Ohio Steven M. Dettelbach and Special Agent in Charge for the FBI Cleveland Field Office Stephen D. Anthony, announced today that former Lorain County, Ohio corrections officer Marlon Taylor, 47, of Vermilion, Ohio, was charged in the U.S. Court for the Northern District of Ohio with one count of deprivation of rights under color of law.
The criminal information alleges that on July 29, 2012, Taylor, while working as a corrections officer in the Lorain County Jail, assaulted an inmate identified as Victim 1 by striking him repeatedly, causing bodily injury and depriving Victim 1 the right to be free from cruel and unusual punishment.
If convicted, Taylor faces a potential maximum sentence of 10 years in prison and a $250,000 fine. A charge is not evidence of guilt and all defendants are presumed innocent until proven guilty.
The investigation has been conducted by the FBI Cleveland Field Office. Assistant U.S. Attorneys Antoinette T. Bacon and Lauren Bell, and, Trial Attorney Betsy Biffl of the Civil Rights Division, Criminal Section will prosecute the case.
Former Lorain County Corrections Officer Charged for Assaulting an InmateRead the Press Release
A former Lorain County corrections officer faces criminal charges for striking a jail inmate multiple times, said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office.
Marlon Tayor, 47, of Vermilion, was charged with one count of deprivation of rights under color of law.
“The vast majority of law enforcement officials do a great job,” Dettelbach said. “When someone abuses the power and privileges of their office, however, they can and will be held accountable.”
The criminal information alleges that on July 29, 2012, Taylor, while working as a corrections officer in the Lorain County Jail, assaulted an inmate identified as Victim 1 by striking him repeatedly, causing bodily injury and depriving Victim 1 the right to be free from cruel and unusual punishment.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case. In all cases the sentence will not exceed the statutory maximum – in this case, 10 years in prison and $250,000 fine -- and in most cases it will be less than the maximum.
This investigation has been conducted by the FBI’s Cleveland Office. Assistant U.S. Attorneys Antoinette T. Bacon and Lauren Bell and Trial Attorney Betsy Biffl will prosecute the case.
A charge is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Hartford Resident Sentenced to 10 Years in Federal Prison for Child Sex Trafficking OffenseRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that BRUCE DAMICO, 35, formerly residing in Hartford, Providence, R.I., and Queens, N.Y., was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 121 months of imprisonment, followed by 10 years of supervised release, for recruiting and transporting a minor to engage in prostitution.
According to court documents and statements made in court, DAMICO recruited, harbored and transported women and girls to engage in prostitution. As a part of his prostitution business, DAMICO posted Internet advertisements offering the women and girls for commercial sex acts, and DAMICO was paid by each woman and girl $100 per day for maintaining the advertisements. DAMICO booked hotel rooms where the women and girls would engage in commercial sex acts, and he transported, or arranged the transportation of, the women and girls to prostitution appointments. DAMICO also sold drugs to the women and girls at inflated prices, often resulting in DAMICO obtaining all the money they made.
In pleading guilty, DAMICO admitted that between June 2009 and January 2010, his prostitution enterprise employed a girl who was under the age of 18. DAMICO posted pictures of the minor victim on the Internet to advertise her prostitution services, and he and others working for him transported the minor victim between Connecticut and surrounding states to engage in prostitution.
DAMICO has been detained since his arrest by the Bloomfield Police Department on January 22, 2010. On March 4, 2013, he pleaded guilty to one count of sex trafficking of a minor.
Judge Underhill ordered DAMICO to pay $10,000 in restitution to the minor victim.
This matter was investigated by the Federal Bureau of Investigation and the Bloomfield Police Department. The case was prosecuted by Assistant United States Attorney David E. Novick.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Faulkner County Sheriff Candidate Sentenced for 2012 Election ScamRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that United States District Judge D. Price Marshall, Jr. sentenced Harold Allen Smith, 47, of Greenbriar, to one month in federal prison to be followed by one year of supervised release with the special condition that the first month of supervised release must be served in a halfway house. He was ordered to report to the Bureau of Prisons in 30 days.
Smith was charged by an Information and pled guilty to one count of transferring a false birth certificate via the United States mail on April 19, 2013. The charges involve activities by Smith in the Spring of 2012 when he was a candidate in the Republican primary for Sheriff of Faulkner County.
In the Spring of 2012, Harold Smith was one of the candidates for Sheriff of Faulkner County in the Republican primary. During February and March, 2012, Smith had meetings with people to discuss the election and how to prevent another Republican candidate, Andy Shock, from winning the primary. Some of the people who met with Smith had suggestions including that Smith drop out of the race to run an anti-Shock campaign, and that it would be funny if a birth certificate surfaced showing that Shock was the father of an illegitimate black child. As a result, Smith, with the help of another person, created false Texas birth certificates showing that Shock was the father of an illegitimate black child.
On March 28, 2012, Smith and another person drove to Hooks, Texas where Smith mailed approximately 12 envelopes containing a note and a false Texas birth certificate to residents in Faulkner County, Arkansas, who it was believed would vote in the Republican primary.
In spite of the efforts of Smith, Andy Shock won the Republican primary and in November, 2012, won the general election and is currently the Sheriff of Faulkner County.
This investigation was conducted by United States Postal Inspection Service. First Assistant U.S. Attorney Patrick Harris and AUSA Cameron McCree prosecuted this case for the United States.
Former Consultant Pleads Guilty to His Role in Atlanta Public Schools Kickback SchemeRead the Press Release
ATLANTA – Mahendra Patel has pleaded guilty to conspiring with former Atlanta Public Schools (APS) Chief Information Officer (CIO) Jerome Oberlton to receive kickbacks in exchange for Oberlton using his influence at APS to award a $780,000 computer project to the firm.
“Patel subverted the fairness of the contracting process for his own benefit, and ultimately undermined the trust taxpayers place in APS to provide high-quality educational services,” said United States Attorney Sally Quillian Yates. “In a time when educational resources are scarce or often non-existent, his fraud helped steer a lucrative computer contract to the highest bidder – one that was willing to line his pockets in exchange for work.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “With today’s guilty plea, Mr. Patel acknowledges his criminal wrongdoing for which he will now be held accountable. The FBI will continue to provide its investigative resources and expertise in exposing such corrupt kickback-based contract deals that subvert the normal process and cost taxpayers additional money.”
“The prosecution of individuals who manipulate normal business transactions in an effort to enrich themselves, has always been a priority of IRS and our law enforcement partners,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Individuals who line their pockets with profits from fraudulent schemes should know, they will not go undetected and will be held accountable.”
According to United States Attorney Yates, the indictment, and information presented in court: Oberlton had overall management responsibility for APS’ information technology program. In January 2007, APS issued a request for proposal (RFP) for a Data Warehousing (DW) project at the school system. The DW project was intended to centralize information relating to APS operations, including student information, so that it was maintained digitally in a secure, easily-accessible manner.
From the start of the project in January 2007, Patel and Oberlton conspired to influence the RFP process and, ultimately, caused the winning bidder to be selected in exchange for kickbacks paid to both. In order to hide the bribes, Oberlton created Global Technology Partners (GTP) and, later, Global Technology Services (GTS) and funneled the bribe payments through these shell companies. Oberlton was able to conceal his ownership of GTP and GTS from APS even when questions arose in 2007. In contrast, the kickbacks to Patel were disguised as sales commissions for non-existent consulting work that he supposedly performed for the shell companies. In reality, Patel acted as an intermediary, helping to negotiate the kickbacks between Oberlton and Company A and then signed fake sales consultant agreements to hide his role. The Detroit-based technology company ultimately paid approximately $60,000 in bribes to Oberlton and Patel over almost six months and, in return, the company received almost $800,000 in APS project work.
Oberlton was the CIO for APS between June 2004 and August 2007 and, most recently, was the Chief of Staff for the Dallas Independent School District before he resigned in May 2013, shortly after he was indicted.Patel, 45, of Kennesaw, Ga., pleaded guilty to conspiring with Oberlton to accept bribes, which carries a maximum term of imprisonment of five years and a fine of $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. A sentencing date for Patel has not yet been set by the Court.
A trial date for Jerome Oberlton has not been set.
These cases are being investigated by the Federal Bureau of Investigation and Internal Revenue Service.
Assistant United States Attorneys Kurt R. Erskine and Jill Steinberg 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 Consultant Pleads Guilty to His Role in Atlanta Public Schools Kickback SchemeRead the Press Release
ATLANTA – Mahendra Patel has pleaded guilty to conspiring with former Atlanta Public Schools (APS) Chief Information Officer (CIO) Jerome Oberlton to receive kickbacks in exchange for Oberlton using his influence at APS to award a $780,000 computer project to the firm.
“Patel subverted the fairness of the contracting process for his own benefit, and ultimately undermined the trust taxpayers place in APS to provide high-quality educational services,” said United States Attorney Sally Quillian Yates. “In a time when educational resources are scarce or often non-existent, his fraud helped steer a lucrative computer contract to the highest bidder – one that was willing to line his pockets in exchange for work.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “With today’s guilty plea, Mr. Patel acknowledges his criminal wrongdoing for which he will now be held accountable. The FBI will continue to provide its investigative resources and expertise in exposing such corrupt kickback-based contract deals that subvert the normal process and cost taxpayers additional money.”
“The prosecution of individuals who manipulate normal business transactions in an effort to enrich themselves, has always been a priority of IRS and our law enforcement partners,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Individuals who line their pockets with profits from fraudulent schemes should know, they will not go undetected and will be held accountable.”
According to United States Attorney Yates, the indictment, and information presented in court: Oberlton had overall management responsibility for APS’ information technology program. In January 2007, APS issued a request for proposal (RFP) for a Data Warehousing (DW) project at the school system. The DW project was intended to centralize information relating to APS operations, including student information, so that it was maintained digitally in a secure, easily-accessible manner.
From the start of the project in January 2007, Patel and Oberlton conspired to influence the RFP process and, ultimately, caused the winning bidder to be selected in exchange for kickbacks paid to both. In order to hide the bribes, Oberlton created Global Technology Partners (GTP) and, later, Global Technology Services (GTS) and funneled the bribe payments through these shell companies. Oberlton was able to conceal his ownership of GTP and GTS from APS even when questions arose in 2007. In contrast, the kickbacks to Patel were disguised as sales commissions for non-existent consulting work that he supposedly performed for the shell companies. In reality, Patel acted as an intermediary, helping to negotiate the kickbacks between Oberlton and the Detroit-based technology company and then signed fake sales consultant agreements to hide his role. The Detroit-based technology company ultimately paid approximately $60,000 in bribes to Oberlton and Patel over almost six months and, in return, the company received almost $800,000 in APS project work.
Oberlton was the CIO for APS between June 2004 and August 2007 and, most recently, was the Chief of Staff for the Dallas Independent School District before he resigned in May 2013, shortly after he was indicted.Patel, 45, of Kennesaw, Ga., pleaded guilty to conspiring with Oberlton to accept bribes, which carries a maximum term of imprisonment of five years and a fine of $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. A sentencing date for Patel has not yet been set by the Court.
A trial date for Jerome Oberlton has not been set.
These cases are being investigated by the Federal Bureau of Investigation and Internal Revenue Service.
Assistant United States Attorneys Kurt R. Erskine and Jill Steinberg 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 City of Buffalo Employee Sentenced for Stealing Hundreds of Thousands of Dollars from Parking MetersRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that James Bagarozzo, 57, of Buffalo, N.Y., who was convicted of stealing $210,000 from the City of Buffalo, a Governmental agency which receives federal funding, was sentenced to 30 months in prison by U.S. District Judge Richard J. Arcara. The defendant has also been ordered to pay $210,000 in restitution.
Assistant U.S. Attorney Maura K. O'Donnell, who handled the case, stated that the defendant was employed by the City of Buffalo for approximately 30 years. In 2003, Bagarozzo began working as a parking meter mechanic for the City. In that capacity, the defendant was responsible for repairing defective parking meter machines, but was not authorized to collect any money deposited into the machines.
Beginning in July 2003 and continuing through December 2011, instead of making necessary repairs, Bagarozzo intentionally damaged in excess of 75 parking meters. Those efforts made it easier for the defendant to steal quarters inserted into the meters by the public. The defendant stored the stolen quarters in bags in his car or in his pants pockets. Bagarozzo used the money to pay for personal expenses and the expenses of his family members.
The Government's evidence included statements from employees at a local bank where Bagarozzo regularly deposited large quantities of the stolen quarters. Bank tellers stated that the defendant would deposit between $3,000 and $5,000 a week.
In 2011, the City of Buffalo's Department of Parking Enforcement initiated a review of parking meters after suspecting that quarters were being stolen from the meters. Subsequently, video surveillance was conducted which showed that the defendant stole quarters from the meters on a daily basis.
"What may have begun as a theft of nickels and dimes, in the end was the equivalent of a major bank heist,” said U.S. Attorney Hochul. “This defendant admitted stealing almost a quarter million dollars which would have gone to the residents of Buffalo. That the defendant operated day in and day out over eight years, committed his crimes while on City time using City vehicles, and utilized his mechanic skills to alter parking meters and make his thefts easier, rank this as one of the more egregious breaches of honesty, ethics, and the public trust Buffalo has seen.”
U.S. Attorney Hochul further stated, “Let this case serve as yet another reminder that whether white collar, blue collar, or no collar, none is immune from prosecution if they violate their oath to the public or break the laws of this nation.”
Bagarozzo was arrested in December 2011 along with another employee, Lawrence Charles, who was also employed as a parking meter mechanic. Charles pleaded guilty to a similar charge on September 4, 2012 and will be sentenced on August 29, 2013 at 1:00 p.m.
The arrests are the culmination of an investigation on the part Special Agents from the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.