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Wednesday 7 August 2013
U.S. Court of Appeals Affirms Verdicts and Sentences of Last Remaining Defendants in Dallas City Hall Corruption CaseRead the Press Release
DALLAS — On Friday, Aug. 2, the U.S. Court of Appeals for the Fifth Circuit in New Orleans, La., issued a 32-page published opinion affirming the convictions and sentences of the last four remaining defendants in the Dallas City Hall Corruption case, including former Dallas Mayor Pro Tem Donald Hill, his wife Sheila Farrington Hill, former City Plan & Zoning Commissioner D’Angelo Lee and Darren Reagan, head of the Black State Employees Association. In so doing, the Court emphasized that the government’s evidence was “strong” and that it “amply” supported the convictions and sentences in a case “involving substantial and wide-ranging public corruption charges related to government-subsidized [housing] development projects in Dallas.” The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
“The successful resolution of this case would not have been possible without the tireless efforts of many dedicated public servants,” said U.S. Attorney Saldaña. “I commend their efforts.”
The opinion was released three months after the three-judge panel heard oral argument in the case. The appellate briefing spanned nearly 1,000 pages and included close to 20 issues. The opinion was the third released by the Fifth Circuit in this corruption prosecution. The first opinion was released in July 2012 and affirmed the conspiracy conviction of codefendant Jibreel Rashad, who was tried separately in January and February 2010. The second was released in October 2012 and affirmed the bribery and money laundering convictions of contractor Ronald Slovacek, who was tried in November 2010.
The appeal involving the final defendants, including Hill, Lee, and two others, followed a three-month trial that began in June 2009. Hill, who testified in the case, and Farrington and Lee were convicted of counts related to bribery, extortion and money laundering. Reagan was convicted of counts related to extortion. Hill received a sentence of 18 years, Lee and Reagan received 14 years and Farrington Hill received nine years.
All of the defendants appealed their convictions, and two, Reagan and Lee, appealed their sentences. In affirming the bribery and money laundering convictions, the Court reasoned that “in order to obtain Hill’s political support for his housing developments, [housing developer Brian] Potashnik agreed to hire Farrington as a community consultant … [and] regularly paid Farrington … despite Farrington never having done any work for him. Hill and Lee also demanded that Potashnik involve various non-profit organizations in his developments, and these organizations then remitted part of their fees to Farrington…. Farrington used money from [her business] account to buy cars for Hill and Lee and made cash withdrawals from the account for Lee. In return for Potashnik’s cooperation, Hill, among other acts, pushed the City Council to approve a financing deal for one of Potashnik’s housing developments.”
In affirming the extortion convictions, the Court noted that “[w]hile these machinations with respect to Potashnik were ongoing, the appellants were also involved in illegal schemes related to Potashnik’s rival, Fisher,” which culminated in “[t]he FBI … photograph[ing] Reagan giving Hill an envelope containing $10,000” after Reagan received one of the extortion payments from Fisher.
Assistant U.S. Attorneys Leigha Simonton and Wes Hendrix were the lead attorneys in the appeals. The district court cases were investigated by the FBI and Internal Revenue Service – Criminal Investigation. They were prosecuted by Assistant U.S. Attorneys Chad Meacham and Marcus Busch and Ms. Saldaña, before becoming U.S. Attorney.
Two North Jersey Men Plead Guilty in Stolen Identity/Tax Fraud SchemeRead the Press Release
NEWARK, N.J. – Two North Jersey men admitted today they used stolen identities to file tax returns and claim refunds to which they were not entitled, U.S. Attorney Paul J. Fishman announced.
Alidu Dramani, 33, of Irvington, N.J., and Evans Boamah, 30, of Elizabeth, N.J., pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to informations charging them with conspiring to make false claims against the United States.
According to documents filed in this case and statements made in court:
Dramani and Boamah were employed at the North Jersey Developmental Center in Totowa, N.J., a mental health institution operated by the State of New Jersey. Using their access to patient information, the defendants stole names and Social Security numbers of patients at the center. They then provided the stolen identity information to another conspirator for use by a tax preparer to file false tax returns under those stolen identities to get federal tax refunds to which they were not entitled. As a result of the defendants’ participation in the conspiracy, tax preparers filed, attempted and intended to file false tax returns for the tax years 2009 through 2011 seeking $396,416 in tax refunds.
The count of conspiracy to defraud the government to which the defendants pleaded guilty is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the pecuniary gain or loss from the offense. Sentencing is scheduled for Nov. 13, 2013.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Lorraine S. Gerson of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
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Defense counsel:
Dramani: Peter W. Till Esq., Springfield, N.J.
Boamah: Stephen Wellinghorst Esq., Hackensack, N.J.Dramani Information
Boamah InformationTwo Former Area Business Owners Sentenced to Prison for Failing to Report More Than $22 Million in Income They SharedRead the Press Release
CHICAGO — A day after together paying more than $10 million in restitution to the Internal Revenue Service, two former business owners were sentenced to federal prison for failing to report as income and pay taxes on more than $22 million they diverted from the business and divided equally. The defendants, MICHAEL H. MARTORANO and WILLIAM S. SEFTON, were sentenced yesterday to 3½ and four years in prison, respectively, after each pleaded guilty in March to three counts of filing false federal income tax returns.
The defendants were the majority owners of the former Consumer Benefit Service, Inc., or Cbsi, a Naperville business that provided membership and consumer discount programs to businesses and associations worldwide.
Martorano, 66, of Ft. Atkinson, Wis., and formerly of Naperville, who was Cbsi’s president, and Sefton, 62, of Scottsdale, Ariz., and formerly of the Chicago area, who was vice president/secretary of Cbsi, under-reported or failed to report the income they diverted over a period of five years. The government argued at sentencing that both men were motivated by greed, and, despite the payment of restitution, urged incarceration to punish them and deter others from committing tax crimes.
U.S. District Judge Edmond E. Chang yesterday imposed the 42-month sentence for Martorano and the 48-month term for Sefton, and ordered both to begin serving their sentences on Nov. 5. Judge Chang also fined both defendants $12,500 and ordered them to pay the mandatory costs of tax offense prosecution.
In addition, Judge Chang ordered restitution, which both defendants paid on Monday. Martorano paid approximately $1.494 million and Sefton paid approximately $1.441 million for individual income taxes they owed the IRS, and together they paid approximately $7.308 million in corporate taxes owed by their business, for a total of $10,244,144.
The sentences were announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
Martorano and Sefton, who were charged in September 2012, admitted that on a number of occasions between December 2005 and December 2009, they caused Cbsi to transfer more than $21.656 million into bank accounts in the name of a consulting firm they controlled. Both defendants used some of this money to pay personal expenses and moved other amounts in approximately equal portions into other accounts they controlled individually. As a result, they each obtained approximately $10.828 million. In 2008, Martorano and Sefton equally divided an additional $641,975 that paid for a “muscle car” for Sefton. Neither defendant disclosed the receipt of any of this money to their individual tax return preparer.
The government was represented by Assistant U.S. Attorneys Kaarina Salovaara and Joseph Stewart.
Two Drug Traffickers Sentenced in Operation "no Quarter"Read the Press Release
RALEIGH and new bern – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced CHRISTINA MONIQUE CAPERS , 30, of Bellflower, California, to 84 months imprisonment, followed by 5 years of supervised release. Mr. Walker also announced that today in federal court, United States District Judge Louise W. Flanagan sentenced DEVON MARQUE THOMAS, 26, of Greenville, North Carolina, to 132 months imprisonment, followed by 5 years of supervised release.
CAPERS was named in an Indictment filed on July 10, 2012, charging her with conspiracy to distribute and possession with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. On October 29, 2012, CAPERS pled guilty to the conspiracy charge.
On June 22, 2012, investigators arrested CAPERS in Greenville, North Carolina, after investigators located 4.151 kilograms of methamphetamine in the door panels of the car she was driving. The investigation revealed that CAPERS transported the methamphetamine from Los Angeles, California, to Greenville. The co-defendants in the case were sentenced by Chief Judge Dever on June 10, 2013. ISMAEL PARRILL, 32, of Long Beach, California received a 180-month sentence, LUIS GUTIERREZ PARRILLA, 46, of Houston, Texas, received a 162-month sentence, and HUMBERTO GARCIA, 26, of San Pedro, California, received a 100-month sentence.
THOMAS was named in an Indictment filed on April 10, 2012, charging him with conspiracy to distribute 5 kilograms of more of cocaine and a quantity of heroin, as well as related distribution and possession with intent to distribute cocaine and heroin counts.
Between August 2010 and March 29, 2012, the Pitt County Sheriff’s Office Narcotics Unit used informants to make 5 controlled purchases of cocaine and heroin from THOMAS. THOMAS was arrested twice in March and April of 2011 after being found in possession of cocaine during traffic stops. The investigation revealed that from 2008 until March 2012 THOMAS was responsible for distributing over 33 kilograms of cocaine, 28 grams of crack cocaine, almost 1 kilogram of marijuana and 3 grams of heroin.
The Organized Crime Drug Enforcement Task Force (OCDETF) Operation "No Quarter" was designed to attack the infrastructure of the Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These DTO's are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation spanned ten years and five North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. Law enforcement officials seized drugs with a street value of $4.6 million, including 127 kilograms of cocaine, 53 pounds of crystal methamphetamine, 160 pounds of marijuana, and 32 grams of heroin. Additionally, $2.2 million in U.S. Currency, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.
The investigations of cases in Operation “No Quarter” were conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico; the Internal Revenue Service - Criminal Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshals Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) - Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff's Office; the Pamlico County Sheriff's Office; the Lenoir County Sheriff's Office; the Craven County Sheriff's Office; the Carteret County Sheriff's Office; the Beaufort County Sheriff's Office; the New Bern Police Department, the Wayne County Sheriff's Office; the Person County Sheriff's Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff's Office, and the Wilson Police Department.
The federal prosecutions were handled by Special Assistant United States Attorneys Glenn Perry and Augustus Willis, IV. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Mr. Willis is a prosecutor with the Carteret, Craven and Pamlico Counties District Attorney’s Office. District Attorneys Kimberly Robb and Scott Thomas have assigned Mr. Perry and Mr. Willis to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their assignments to the United States Attorney’s Office have been made possible by grants funded by the Governor’s Crime Commission.
Toledo Man Indicted on Child Pornography ChargeRead the Press Release
An indictment was filed charging Bryan Lorann, age 29, of Toledo, with receipt and possession of child pornography between May 20, 2011 and February 23, 2012, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after reviewing 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.
The investigating agency in this case is the Department of Homeland Security, Immigration and Customs Enforcement, Cleveland, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Men Found Guilty of First-Degree Murder While Armed and Other Charges for Killing A Man During 2009 Robbery-Second Victim Was Shot and Wounded-Read the Press Release
WASHINGTON – Paul Ashby, 50, Keith Logan, 51, and Merle Watson, Jr., 56, all of Washington, D.C., were found guilty by a jury today of first-degree murder while armed and other charges for killing a man during a kidnapping and robbery. Logan also was found guilty of shooting a potential witness the same night, U.S. Attorney Ronald C. Machen Jr. announced.
The verdict followed several weeks of trial in the Superior Court of the District of Columbia. All three defendants were found guilty of first-degree murder while armed, with aggravating circumstances, conspiracy, kidnapping while armed, armed robbery, and weapons offenses. Logan also was found guilty of assault with intent to kill while armed, aggravated assault while armed, and mayhem while armed, for the attack on the potential witness.
The Honorable Herbert B. Dixon, Jr. is to sentence the defendants on Oct. 9, 2013. They face mandatory minimums of 30 years in prison and potential sentences of life in prison.
According to the government’s evidence, Ashby, Logan and Watson conspired to kidnap and rob Carnell Bolden, 36. They lured Mr. Bolden into Logan’s residence in the unit block of W Street NW during the early evening hours of Dec. 30, 2009. After beating him unconscious and tying him up, the defendants then went to get Mr. Bolden’s car, which was parked on the block.
Ashby, Logan and Watson then discovered that Mr. Bolden’s girlfriend was sitting in the car. Fearing she would be a witness against them because she might know where Mr. Bolden was going when he left the car, they then decided to kill both of them.
Ashby drove Mr. Bolden, tied up and unconscious, to the 3000 block of Park Drive SE, where he dragged him into a wooded area adjacent to that block. He then shot Mr. Bolden twice at close range with a .38 or .357-caliber handgun, killing him.
While Ashby was on the way to Southeast Washington with Mr. Bolden, Logan approached Mr. Bolden’s girlfriend as she sat in her car. He stood outside the driver’s window and shot her four times with a nine-millimeter handgun. She was rushed to Washington Hospital Center and survived the attack.
In announcing the verdicts, U.S. Attorney Machen expressed appreciation to those who investigated the case from the Metropolitan Police Department (MPD), the District of Columbia Department of Forensic Sciences, and the FBI Laboratory in Quantico, Va.
He also thanked those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates and Specialists Marcia Rinker, La June Thames, Katina Adams-Washington, and Michael Hailey; Paralegal Specialists Sandra Lane, Kendra Johnson, Kwasi Fields, Anthony Griffith, and Antoinette Sakamsa; Litigation Technology Specialists Paul Howell, William Henderson, and Anisha Bhatia; Law Clerks Lauren Sparks and Ryan Lipes, and Criminal Investigator Derek Starliper. In addition, he acknowledged the work of Assistant U.S. Attorneys Alessio Evangelista, who led the grand jury investigation, and Reagan Taylor, who helped prepare the case for trial. Finally, he commended the work of Assistant U.S. Attorneys Michael C. Liebman and Erik Kenerson, who tried the case.
13-279Three Indicted on Drug Charges Related to Theft of Prescription Drugs at Benton PharmacyRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, William J. Bryant, Assistant Special Agent in Charge of the Drug Enforcement Administration's Little Rock District Office (DEA), and Kirk R. Lane, Chief of Police for the Benton Police Department (BPD), announced that a two-count Indictment was issued today charging William Franklin Thompson, age 34, of Traskwood; James Jubilee Owens, age 38, of Bismarck; and Joseph Louis Thurlow, age 23, of Hot Springs with drug crimes related to the theft of more than 25,000 pills from a Benton pharmacy in January 2013.
Count 1 charges Thompson, Owens, and Thurlow with conspiracy to possess with intent to distribute and to distribute Schedule II controlled substances, including Oxycodone, Oxymorphone, Morphine, Hydromorphone, Meperidine, Methadone, Methylphenadate, Dextroamphetamine, Tapentadol, and Lisdexamphetamine dimesylate. Count 2 charges the same men with aiding and abetting one another to possess Oxycodone with intent to distribute.
"Although they may have initially thought they were able to pull off this theft, due to quick action by the Benton Police Department this robbery was ultimately unsuccessful," said Thyer. "These men will now be facing up to twenty years in prison."
Bryant stated, "Prescription drug abuse is the fastest growing illicit drug problem our state faces. It plagues our streets with violence and touches every level of society. The Benton Police Department did an excellent job investigating this case, and we appreciate our partnership with them so that we can continue to address the prescription drug problem on a federal level."
Chief Lane added, "This case was resolved by great investigative work and law enforcement partnerships that in turn, will keep our citizens safe. We are proud to be a part of the team."
The charges result from a burglary on January 30, 2013 at the Westside Pharmacy in Benton, Arkansas which was investigated by the BPD. According to BPD reports, Thurlow gained entry to the pharmacy through an adjacent business which shared ceiling space with the pharmacy. After getting inside the business, Thurlow gained access to the pharmacy above the ceiling and by breaking a hole in the sheet rock firewall separating the two businesses. He then maneuvered above the drop ceiling along the roof rafters until coming upon the Schedule II closet in the pharmacy. A motion detector linked to the pharmacy's alarm system was disabled by Thurlow with assistance via walkie-talkie from Owens. Thurlow then climbed into the closet from the ceiling undetected. More than 25,000 pills were placed into a large duffle bag, and Thurlow climbed back through the ceiling with the pills and returned to the point of entry through the adjacent business. Both Owens and Thompson were stationed in separate vehicles outside the pharmacy with walkie-talkies.
According to BPD reports, after the burglary, the drugs were taken to a Hot Springs home where they were repackaged for distribution by the defendants. The pills were then relocated to Owens' residence in Bismarck where they were stored, and were later seized by Benton Police detectives. Detectives also discovered burned debris in a firepit behind Owens' residence consistent with the original packaging for the drugs.
Both counts of the Indictment carry punishment of not more than 20 years imprisonment with a possible fine of up to $1,000,000, and at least 3 years of supervised release.
Thompson, Owens, and Thurlow are currently not in custody. They will be summoned to appear in federal court before a United States Magistrate Judge later this month.
The investigation was conducted by the Drug Enforcement Administration Little Rock Office and the Benton Police Department. It is being prosecuted by Assistant United States Attorneys Tricia Harris and Jamie Dempsey.
An indictment contains only allegations. The defendant is presumed innocent unless and until proven guilty.
Three Defendants Sentenced for String of Armed Bank RobberiesRead the Press Release
ATLANTA - Torrey Marable and two codefendants, Rico Blackwell and Jason Blackwell, were sentenced today to federal prison for armed bank robbery.
“These men terrorized bank employees when they entered the banks they robbed with guns drawn,” said U.S. Attorney Sally Quillian Yates. “Serious violent crimes should be met with serious prison sentences, such as those imposed in this case, to protect our communities.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing ends a violent crime spree and removes four dangerous individuals from our streets. The FBI commends the many law enforcement officers and agents that worked hard in this matter but the contributions made by those observant and responsive officers of the Austell Police Department who conducted the car stop on these individuals after a bank casing there is particularly noteworthy and commendable.”According to United States Attorney Yates, the charges and other information presented in court: Beginning on August 9, 2012, and continuing until his arrest on September 5, 2012, Torrey Marable robbed banks located in Atlanta, Dunwoody, and Marietta, Ga. Deandre Markee King and Rico Blackwell joined Marable in the Dunwoody robbery, during which all three men brandished their guns and used them to move the tellers into the vault and force them to hand over more than $71,000.
On September 4, 2012, Marable and King canvassed another bank in Austell, Ga., forming their plan to rob the bank. On September 5, 2012, Jason Blackwell drove Marable, King and his half-brother Rico Blackwell, near a PNC Bank in Austell. At the same time, law enforcement was on the lookout for a car matching the description of the one Jason Blackwell was driving. They were also looking for a man with dreadlocks, which was the style of Marable’s hair. Before the robbery occurred, Austell police pulled the car Jason Blackwell was driving over, finding Marable, King and Rico Blackwell all with semi-automatic handguns within their reach. Police also found two surgical masks, two bandanas and latex gloves in the car.
Marable, 21, of Decatur, Ga., was sentenced by United States District Judge Evans to 27 years in prison to be followed by 5 years of supervised release. Marable was ordered to pay restitution in the amount of $89,644. He was convicted of these charges on April 4, 2013, upon his plea of guilty.
Rico Blackwell, 22, of Decatur, Ga., received 138 months in prison and was ordered to pay restitution in the amount of $71,668; and Jason Blackwell, 32, of Decatur, Ga., received 84 months in prison. These prison sentences will be followed with 3 years of supervised release. Deandre Markee King, 28, of Decatur, Ga. will be sentenced on August 28, 2013.
This case was investigated by the Federal Bureau of Investigation with assistance from the Cobb County Police Department and the Austell Police Department.Assistant United States Attorney Susan Coppedge prosecuted 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.
Texas U.S. Attorneys Meet to Discuss Human TraffickingRead the Press Release
Districts to Build on Local Successes to Develop and Implement Statewide Anti-Human Trafficking Strategy
DALLAS — The four U.S. Attorneys in Texas, John Malcolm Bales of the Eastern District, Sarah R. Saldaña of the Northern District, Kenneth Magidson of the Southern District and Robert L. Pitman of the Western District, met yesterday in the U.S. Attorney’s office in Dallas to discuss anti-human trafficking initiatives in their districts and explore implementing a statewide anti-human trafficking strategy.
“Involuntary servitude and other forms of human abuse are an anathema to the American way of life and must be met with all the fervor and creativity that we can muster,” said U.S. Attorney Bales. “I am very pleased to join forces with our sister districts.”
“The Northern District is fully engaged, with our federal, state and local law enforcement partners, and our colleagues in governmental and non-governmental organizations, in preventing and fighting human trafficking in all its detestable forms,” said U.S. Attorney Saldaña. “While our commitment has never been stronger and we are encouraged by many recent achievements in this fight, we can always do more. By partnering with the other federal judicial districts in Texas we can maximize the effectiveness of our joint efforts in prevention and advance high-impact human trafficking prosecutions.”
“The Southern District of Texas has had tremendous success through leadership of our longstanding Human Trafficking Rescue Alliance, which partners with a variety of federal, state and local agencies and has served as a model to other districts,” said U.S. Attorney Magidson. “This is an issue that doesn't just affect us, but the entire state and nation. We hope to continue our efforts, to share ideas, to identify areas of improvement and ensure all the work in Texas is consistent and continues to be an example to the nation in this significant law enforcement arena.”
“Because of Texas’ extensive border with Mexico, we are on the front lines in the effort to combat human trafficking,” said U.S. Attorney Pitman. “It’s shocking to realize that human trafficking persists in our communities in the form of child exploitation, forced prostitution and involuntary servitude. As United States Attorneys in Texas, we are determined to re-focus our efforts to identify and rescue victims, as well as to prosecute and hold accountable those responsible for these inhumane crimes.”
The U.S. Attorneys met with Nick Sensley, the Anti-Trafficking Strategist for Humanity United (HU), a foundation committed to building peace and advancing human freedom. Mr. Sensley is a key player in HU’s efforts to guide states in developing statewide anti-trafficking strategies that use collaborative, innovative efforts to identify and stop traffickers and help victims heal and rebuild their lives. Members of the North Texas Anti-Trafficking Team’s Executive Board joined the meeting for further discussion.
The Justice Department’s commitment to preventing human trafficking, bringing traffickers to justice and assisting victims has never been stronger. While the Department’s work has sent a clear and critical message that human trafficking crimes will not be tolerated, there is still much to be done. This meeting constitutes another step in the fight against modern day slavery.
Texas Man Sentenced to Prison for Federal Cocaine Trafficking ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Texas man was sentenced today by Senior United States District Judge Edwin M. Kosik to serve 48 months in prison on the charge of conspiracy to distribute cocaine.
According to United States Attorney Peter J. Smith, Jhonny Pichardo, age 51, formerly of Coppell, Texas, previously admitted to participating in a drug-trafficking conspiracy which obtained cocaine in Texas and distributed the cocaine in the Monroe County and Northampton County areas in 2011.
In addition to the prison term, Senior Judge Kosik also ordered that Pichardo be supervised by a probation officer for four years following his prison sentence.
The investigation was conducted by the Drug Enforcement Administration, the Stroud Area Regional Police Department and the Internal Revenue Service, Criminal Investigations.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
South Dakota Man Sentenced for Robbing Arden Hills and Bloomington BanksRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 45-year-old South Dakota man was sentenced for robbing two Twin Cities’ banks during the first week of 2012 and one North Dakota bank in December 2011. United States District Judge David S. Doty sentenced William Roy St. John, of Sisseton, South Dakota, to 188 months in prison on three counts of bank robbery. On April 3, 2012, St. John was indicted in connection with the Minnesota robberies, and on May 2, 2012, he was indicted for the North Dakota robbery. On December 5, 2012, St. John pleaded guilty to all three robberies.
In his plea agreement, St. John admitted that on January 2, 2012, he stole approximately $3,810 from the US Bank on Lyndale Avenue South in Bloomington; on January 4, 2012, he stole approximately $5,520 from the Wells Fargo Bank on County Road E in Arden Hills; and on December 31, 2011, he stole approximately $2,107 from the Bank of the West in Fargo, North Dakota.
Surveillance images from the two Minnesota banks indicated that the suspect was the same man. As part of a law enforcement investigation into those crimes, authorities executed a state search warrant at a Minneapolis apartment on January 5, 2012. Among other things, they recovered clothing similar to that worn by the robber.
On January 7, 2012, authorities arrested St. John in Bloomington. In addition to being charged federally with bank robbery, St. John was charged in Hennepin County District Court with attempted home invasion as well as attempted carjacking, kidnapping, and auto theft, all of which were unrelated to the bank robberies. St. John has since been convicted of those state charges, and he remains in state custody.
This federal bank robbery case was the result of an investigation by the Federal Bureau of Investigation, the U.S. Marshals Service, the Bloomington Police Department, and the Ramsey County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Andrew Dunne.Seth Patrick Durnam Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on July 31, 2013, before U.S. District Judge Donald W. Molloy, SETH PATRICK DURNAM, a resident of Bozeman, was sentenced to a term of:
Prison: 52 months
Special Assessment: $100
Supervised Release: 10 years
DURNAM was sentenced in connection with his guilty plea to possession of child pornography.
In an Offer of Proof filed by Assistant U.S. Attorney Tara J. Elliott, the government stated it would have proved at trial the following:
On November 8, 2010, DURNAM was at a residence in Bozeman for a job interview.
On Saturday, November 13, 2010, the homeowner found a 2GB SD card in his driveway. The homeowner called his father who had visited earlier in the day to inquire if the card was his. His father replied that it was not and suggested that he view the images on the card to identify the owner. He did so and found hundreds of images of child pornography, that he described as "naked, under-age boys." When scrolling through the images, the homeowner found a picture of DURNAM, whom he recognized from the earlier job interview. The homeowner contacted law enforcement and turned over the card.
When interviewed by a detective the next day, DURNAM admitted that he "did like images of younger boys" but claimed it was earlier in his life. When the SD card was examined, approximately 300 sexually explicit images and 5 movies of nude prepubescent and early teen boys were found on the card. The images had been copied to the SD card on April 21, 2010, by means of another device. There were also several pictures of DURNAM on the card.
DURNAM possessed images and movies of children clearly prepubescent and children engaged in sadistic or masochistic abuse or other depictions of violence.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that DURNAM will likely serve all of the time imposed by the court. In the federal system, DURNAM 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 Gallatin County Sheriff's Office.
San Francisco Investment Adviser Sentenced to 56 Months for Fraud SchemeRead the Press Release
SAN FRANCISCO - Hausmann-Alain Banet (a/k/a Anzoumana Ousmann Gbane, a/k/a Gbane Anzoumana a/k/a Ousmann Gbane, a/k/a Ousmann Gbane Anzounan Banet, a/k/a Ousmann-Alain Gbane) of San Francisco, California, was sentenced yesterday to 56 months in prison and ordered to pay $1.2 million in restitution for defrauding former investment clients, United States Attorney Melinda Haag announced.
Banet pleaded guilty on May 21, 2013, to wire fraud and mail fraud. According to the Plea Agreement, from approximately June 2008 through July 2012 Banet induced numerous individuals to give him money by falsely representing that he, on behalf of his investment management company, Lion Capital Management Group, LLC, would invest the money in hedge funds. Instead, Banet spent the money for personal and business expenses, all unrelated to investment income. As part of his scheme, Banet sent quarterly investment account statements to victims in which he falsely stated that the funds had been invested and that the accounts had realized gains. At sentencing, the Court also found that Banet had attempted to obstruct a related civil investigation by making false statements to the Securities and Exchange Commission.
Banet, 50, was originally indicted by a federal grand jury on October 2, 2012. He was charged with six counts of wire fraud, eleven counts of mail fraud, and six counts of money laundering. Under the Plea Agreement, Banet pleaded guilty to two counts of wire fraud and two counts of mail fraud. Banet has been in custody since approximately January 3, 2013.
The sentence was handed down by The Honorable William H. Alsup, U.S. District Court Judge. Judge Alsup also sentenced the defendant to a 3 year period of supervised release and ordered forfeiture of Banet’s interest in his San Francisco condominium, bank and trading accounts totaling approximately $78,000, and his Mercedes Benz.
Denise Marie Barton is the Assistant United States Attorney who is prosecuting the case with the assistance of Allen Williams, Pat Mahoney, and Elizabeth Garcia. The prosecution is the result of an approximately five month investigation by the Federal Bureau of Investigation, with the assistance of the San Francisco Office of the Securities and Exchange Commission and Immigration and Customs Enforcement.
Rosebud Man Charged with Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that Kameron Jackson, age 20, of Rosebud, South Dakota, appeared before U.S. District Judge Roberto A. Lange on July 30, 2013, and pled guilty to Abusive Sexual Contact.
The maximum penalty upon conviction is 2 years in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on January 4, 2013, when Jackson had sexual contact with the victim.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Tim Maher.
A presentence investigation was ordered and a sentencing date was set for October 7, 2013. The defendant must self-report to the custody of the U.S. Marshals on September 24, 2013.Rochester Man is Sentenced in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y.-- United States Attorney William J. Hochul, Jr. announced today Paul Hearty, 37, of Rochester, New York, was sentenced to 10 years in prison and 15 years of supervised release by United States District Judge Frank P. Geraci, Jr., after pleading guilty to a one count felony information charging him with knowing possession of child pornography.
Assistant U.S. Attorney Tiffany H. Lee, who handled the prosecution for the Government, stated that in December 2010, New York State Police's Internet Crimes Against Children Task Force received information that an AOL user was sending child pornography to an account used by a particular Internet Protocol address. The subscriber of the Internet Protocol address was identified as Hearty, residing at Alexander Street, in the City of Rochester. New York State Police executed a search warrant in April 2011 and images of child pornography were found on Hearty's Samsung smart phone.
In 2005, Hearty was convicted in Monroe County of the Possession of an Obscene Sexual Performance By A Child Less Than 16 Years Old. Following his conviction, Hearty was required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.The sentence was the culmination of an investigation on the part of the United States Homeland Security Investigations under the direction of Special Agent in Charge James Spero, the New York State Police Computer Crimes Unit under the direction of Captain Frank Pace and the Monroe County District Attorney's Office under the direction of Sandra Doorley.
Porcupine Woman Indicted and Arraigned on Four Counts of Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine, South Dakota, woman was indicted by a federal grand jury on four counts of Sexual Abuse of a Minor.
Ardis Good Shot, age 39, was indicted on July 23, 2013. She appeared before U.S. Magistrate Judge Veronica L. Duffy on July 29, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction on each count is 15 years of imprisonment and a $250,000 fine. The charge is merely an accusation and Good Shot is presumed innocent until and unless proven guilty.
The investigation is being conducted by Bureau of Indian Affairs Office of Justice Services. Special Assistant U.S. Attorney Laura A. Shattuck is prosecuting the case.
Good Shot was released on bond pending trial. A trial date has not been set.Phenix City Man Sentenced for Drug Trafficking and Weapons PossessionRead the Press Release
Montgomery, Alabama - Shedrick D. Hollis, 40, of Phenix City, was sentenced yesterday to 35 years in prison for drug trafficking and weapons possession charges, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama.
On March 14, 2013, Hollis was convicted of possession with the intent to distribute cocaine powder, crack cocaine, BZP (a club drug similar to Ecstasy) and marijuana, and of possession of firearms in furtherance of his drug trafficking activity. United States District Judge W. Keith Watkins sentenced Hollis to a term of 30 years in prison for his conviction of possession with intent to distribute cocaine powder, crack cocaine, BZP and marijuana. Judge Watkins further ordered that Hollis be imprisoned for an additional 5 years imprisonment for possession of firearms in furtherance of his drug trafficking activity.
Testimony at trial established that in late February, 2011, the United States Marshal’s Gulf Coast Regional Fugitive Task Force (GCRFT) received a request to assist in locating and arresting Hollis for violations of his parole out of Georgia. Law enforcement learned that Hollis was in a rented vehicle which was located at a residence in Phenix City, Alabama. On March 1, 2011, the GCRFT went to the residence, saw the rented car, identified themselves as law enforcement, and knocked on the door. Officers saw Hollis through a window beside the front door and ordered Hollis to open the door. When Hollis did not open the door, the front door of the residence was breached and Hollis was arrested.
After the arrest, officers conducted a protective sweep of the residence to insure that no one else was present in the house to endanger the officers’ safety. During the protective sweep, officers located a loaded shotgun and rifle, as well as a plastic bag containing a large amount of marijuana and scales. Officers then obtained a search warrant in order to conduct a complete search of the residence. During the search, officers located a large amount of cocaine powder, bags of crack cocaine, bags of pills which were later determined to be BZP, bags of marijuana, scales containing cocaine and marijuana residue, and $5,000 in cash.
“This sentence shows that drugs dealers who spread their poison to members of this community will be severely punished,” stated U.S. Attorney Beck. “My office will continue to do all we can under the law to rid our communities of these toxic substances. Also, when you combine drug dealing with firearms, you get a particularly dangerous situation that we will continue to work tirelessly to stop.”
“The combined efforts of law enforcement agencies and the United States Attorney’s Office in the Middle District of Alabama have removed an armed drug trafficker from our community,” stated Clay Morris, Assistant Special Agent in Charge of the Drug Enforcement Administration for Alabama. “This investigation and subsequent sentencing of Hollis will send a clear message to the criminal elements that your actions will not be tolerated.”
The case was investigated by the Drug Enforcement Administration, and the Metro Narcotics Task Force, with the aid of the Russell County Sheriff’s Department, the Phenix City Police, the United States Marshal’s Service and the Gulf Coast Regional Fugitive Task Force.
The case was prosecuted by Assistant United States Attorneys Susan R. Redmond and Jared Morris.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Petersburg Man Sentenced to Eleven Years for Methamphetamine and Cocaine TraffickingRead the Press Release
RICHMOND, Va. – Torry Little, of Petersburg, Va., was sentenced today to 132 months in prison for possession with the intent to distribute 5 grams or more of methamphetamine and 500 grams or more of cocaine hydrochloride.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration (DEA)’s Washington Division, made the announcement after sentencing by United States District Judge James Spencer.
Little pleaded guiltyon May 9, 2013. According to court documents, Little sold cocaine to a confidential informant on two separate occasions. Later, officers executed a search warrant on Little’s residence and recovered 39 grams of an unusually high-purity form of methamphetamine, 1003 grams of cocaine hydrochloride, $13,218 in United States currency, and a .380 caliber handgun.
This case was investigated by the Drug Enforcement Administration and the Virginia State Police Central Virginia Regional Narcotics Task Force. Assistant United States Attorney Erik S. Siebert 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.Parmalee Man Charged with Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmalee, South Dakota, man was indicted by a federal grand jury for engaging in a sexual act with a woman who was unable to give permission.
Patrick Left Hand Bull, age 40, was indicted on July 23, 2013, for Abusive Sexual Contact. He appeared before U.S. Magistrate Judge Veronica L. Duffy on July 31, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is 3 years’ imprisonment and/or a $250,000 fine. The charge is merely an accusation and Left Hand Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Sarah Collins is prosecuting the case.
Left Hand Bull was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.Parmalee Man Charged with Failure to RegisterRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmalee, South Dakota, man was indicted by a federal grand jury for not updating his sexual offender registration as required.
Wolf Guts was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Richard Wolf Guts, age 28, was indicted on July 23, 2013, for Failure to Register as a Sex Offender. He appeared before U.S. Magistrate Judge Veronica L. Duffy on August 2, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is 10 years’ imprisonment and/or a $250,000 fine. The charge is merely an accusation and Wolf Guts is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.Owner of Addison Seafood Company Sentenced and Fined $100,000 in Federal Court for Mislabeling Frozen Fish and ShrimpRead the Press Release
CHICAGO — The owner of an Addison seafood distributor received a maximum $100,000 fine and was sentenced to five years’ federal probation, with the first six months in home confinement, for mislabeling certain products by substituting cheaper fish for more expensive fish and misstating the weight of shrimp to charge customers more for a lesser quantity. The defendant, PATRICK A. BRUNO, president and owner of Gourmet Express Marketing, Inc., was sentenced after he pleaded guilty in April to a misdemeanor violation of the Federal Food, Drug, and Cosmetic Act.
Bruno, 71, of Addison, must pay the costs of electronic monitoring during home confinement. U.S. Magistrate Judge Sheila Finnegan, who imposed the sentence yesterday in Federal Court in Chicago, also ordered Bruno to obey the terms of a civil consent decree as a condition of his probation. That decree, which Bruno and Gourmet Express entered in April and settled a parallel civil lawsuit filed by the government, permanently enjoins any future violations. Bruno admitted that he mislabeled and sold swai as “catfish,” and perch as “red snapper” or “pacific snapper,” and also misstated the weight of ice-glazed shrimp.
The mislabeling has not resulted in any known illnesses or danger to public health, officials said.
In pleading guilty in the criminal case, Bruno admitted that between 2007 and 2010, he knew that seafood he sold was mislabeled and that the packages of frozen shrimp overstated the weight of that ice-glazed product. The civil consent decree, which lasts at least five years, enjoins him and his company from committing any future violations, requires the hiring of an independent expert at the company’s expense to ensure compliance with the agreement and federal laws, and provides for civil damages of $5,000 a day and $10,000 for each shipment in the event violations occur.
The sentence was announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Scott MacIntire, district director of the FDA’s Chicago District Office, and John Redmond, Acting Special Agent-in-Charge of the FDA’s Office of Criminal Investigations.
According to court documents, Gourmet Express purchases, processes and repacks frozen seafood and sells its products to retailers and wholesalers in Illinois and other states. The Food and Drug Administration issued a warning letter to Bruno and Gourmet Express in February 2010 after inspections in 2009 found that they misrepresented the weight of frozen shrimp after adding an ice glaze to the products, and mislabeled perch as “red snapper,” or “pacific snapper.” A subsequent inspection in March and April 2010 documented continuing and additional violations.
The FDA tested samples of Bruno and Gourmet Express’s frozen cooked shrimp during some inspections in 2009 and 2010 to evaluate the net weight stated on the product labels. The tests revealed that the actual weight of the products was at various times, respectively, 21.5 and 14.4 percent under the labeled weight. The FDA conducted DNA testing to determine the true species of the fish.
The government was represented by Assistant U.S. Attorneys Kaarina Salovaara and Donald Lorenzen.
Orlando Man Pleads Guilty to Distribution and Possession of Child PornographyRead the Press Release
Orlando, Florida - Acting United States Attorney A. Lee Bentley, III announces that Jeffrey Alan Barnett (46, Orlando) today pleaded guilty to three counts of distribution of child pornography and one count of possession of child pornography. Barnett faces a mandatory minimum of not less than 5 years, up to 20 years in federal prison for each distribution count, and a maximum penalty of up to 10 years in federal prison for the possession count. Sentencing has been set for December 19, 2013. Barnett was indicted on April 17, 2013.
According to court documents, Barnett used a peer-to-peer filing sharing program to distribute child pornography to an undercover federal task force agent on three separate occasions. On March 21, 2013, a federal search warrant was executed at Barnett’s residence. During the execution of that search warrant, investigators found a computer located in Barnett’s bedroom that contained child pornography. Barnett was interviewed and admitted, among other things, that the computer belonged to him and that he had been using a peer-to-peer file sharing program to download and trade child pornography. He was arrested on the same date.
This case was investigated by the Federal Bureau of Investigation and the Seminole County Sheriff's Office. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
It is another case 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.
Operator of Sports Merchandise Company Sentenced to 3 Years in Prison for Running Fraud SchemeRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County, Pa., has been sentenced in federal court to serve 37 months imprisonment, to be followed by three years supervised release, and ordered to pay restitution in the amount of $601,470.31, on his conviction of mail fraud, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Andrew A. Demasi, 63, of Natrona Heights, Pa.
According to information presented to the court, Demasi and his partner, Ronald Halpern, operated a business known as A & R Services, Inc., from an apartment at Washington Place, Pittsburgh, Pa. On behalf of A & R Services, Demasi and Halpern negotiated the purchase, sale, and delivery of sports-related merchandise and novelty items. During the period April 2007 through September 2007, Demasi and Halpern devised and executed a scheme to defraud manufacturers, wholesale distributors, and interstate shipping companies of money and property, valued at more than $600,000. The fraud scheme included obtaining merchandise for resale by applying for extensions of credit from the various manufacturers, wholesalers, and shipping companies based on false, financial information provided by Demasi.
On Aug. 3, 2007, Demasi and Halpern, in executing the scheme, obtained merchandise, delivered by interstate carrier FedEx, from Pro Specialities Group, Inc., in San Diego, California, based upon credit extended upon materially false financial information about the financial health and history of A & R Services, Inc. Demasi and Halpern had no intention of paying for the merchandise or its shipment after receipt.
Ronald Halpern entered a guilty plea before Judge Arthur Schwab and was sentenced in May 2013 to serve a 24-month term of imprisonment.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Office of the United States Trustee for the investigation leading to the successful prosecution of Demasi.
Oglala Woman Guilty of Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that Elizabeth Red Star-Benson, age 27, of Oglala, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy on August 2, 2013, and pled guilty to a charge of Involuntary Manslaughter.
The maximum penalty upon conviction is 8 years’ imprisonment and/or a $250,000 fine.
On August 31, 2012, Red Star-Benson was driving under the influence, with a blood alcohol content of .261, and rolled her vehicle on BIA Hwy 27 near KILI radio station in Porcupine. Her four-year old son, who was not properly restrained, was ejected from the vehicle and died at the scene from his traumatic injuries.
The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and the South Dakota Highway Patrol. The case is being prosecuted by Assistant U.S. Attorney Sarah Collins.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.North Dakota Man Charged with Aggravated Sexual Abuse of A Minor and Abusive Sexual Contact of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Yates, North Dakota, man has been indicted by a federal grand jury.
Cecil White Bull, age 40, was indicted on July 17, 2013, on two counts of Aggravated Sexual Abuse of a Minor and two counts of Abusive Sexual Contact of a Minor. White Bull appeared before U.S. Magistrate Judge William D. Gerdes on July 25, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction of the sexual abuse charges is a mandatory minimum of 30 years up to life imprisonment. The maximum penalty upon conviction of the sexual contact charges is any term of years up to life imprisonment. All counts include a $250,000 fine, 5 years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and White Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case. White Bull was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.Nixa Man Pleads Guilty to Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Nixa, Mo., man pleaded guilty in federal court today to receiving and distributing child pornography over the Internet.
Charles Williams, 28, of Nixa, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in an Aug. 28, 2012, federal indictment.
By pleading guilty today, Williams admitted that he used peer-to-peer file-sharing program on two laptop computers to download and distribute dozens of videos and photos of child pornography over the Internet from April 9 to Sept. 27, 2011.
According to today’s plea agreement, a Nixa police officer used a peer-to-peer file-sharing program to connect to Williams’ computer over the Internet. The officer located child pornography on the computer and obtained a search warrant for Williams’ residence. Officers executed the search warrant on Sept. 27, 2011, and seized two laptop computers, two cameras, two videogame consoles, 115 CDs/DVDs and a VHS tape. Among the files discovered on one of the laptop computers was a video of a 4-to-5-year-old child being raped by an adult. Williams was arrested on Sept. 27, 2011.
Investigators conducted an examination of Williams’ computers and found 52 incomplete or partially downloaded videos of child pornography, 29 saved videos of child pornography, eight videos of child pornography in the recycle bin and 13 images of child pornography.
Under federal statutes, Williams is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the FBI and the Nixa, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources." . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."New Haven Man Pleads Guilty to Role in Crack Distribution RingRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MUJAHID MUHAMMED, also known as “Doughboy,” 28, of New Haven, pleaded guilty before Chief United States District Judge Alvin W. Thompson in Hartford to one count of conspiracy to possess with intent to distribute 280 grams or more of cocaine base (“crack cocaine”).
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force into drug distribution and related gang activity in The Hill neighborhood of New Haven. The investigation, which included the use of court-authorized wiretaps, revealed that MUHAMMED regularly obtained large quantities of crack cocaine from sources in New York City, and that he and other members and associates of the Southside Bloods street gang distributed the drug in the New Haven area.
Chief Judge Thompson has scheduled sentencing for October 30, 2013, at which time MUHAMMED faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Six of the 10 individuals charged as a result of the result of the investigation have pleaded guilty. As to the four defendants who are awaiting trial, Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter has been investigated by the FBI’s New Haven Safe Streets Task Force, including the New Haven, Hamden and Milford Police Departments, and the State of Connecticut Department of Correction. The case is being prosecuted by Assistant United States Attorneys Anthony Kaplan and Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Canaan Man Admits Involvement in Organized Crime-controlled Gambling RingRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOSEPH BOREA, 56, of New Canaan, pleaded guilty today before United States District Judge Vanessa L. Bryant in Hartford to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations (RICO) Act stemming from his involvement in organized-crime controlled gambling businesses.
According to court documents and statements made in court, after a long-term investigation led by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation and the Stamford Police Department, BOREA, Dean DePreta, Richard Uva and 17 other individuals were charged with various offenses related to their involvement in an illegal Internet sports bookmaking operation and illegal card gambling clubs. As part of the conspiracy, DePreta and Uva were involved in the collection and payment of “tribute” payments to Gambino organized crime family associates in New York.
The investigation, which included the use of court-authorized wiretaps, revealed that DePreta operated a large-scale sports bookmaking business in which gamblers placed bets with offshore Internet sports-gambling websites, particularly www.44wager.com based in Costa Rica. Uva served as the “master agent” for the bookmaking operation.
In addition, DePreta, Uva and others operated card gambling clubs in Stamford and Hamden where a house percentage, commonly referred to as a “rake,” was collected from every hand played.
BOREA collected gambling debts for DePreta and Uva.
Judge Bryant has scheduled sentencing for October 30, 2013, at which time BOREA faces a maximum term of imprisonment of 20 years. He also has agreed to forfeit $75,000.
BOREA has been released on bond since his arrest on June 13, 2013.
DePreta and Uva have pleaded guilty and await sentencing.
FBI analysis of the sports-betting web site utilized by the co-defendants has determined that the total gross revenues of the Stamford-based gambling operation were nearly $1.7 million from October 2010 to June 2011.
To date, the defendants who have pleaded guilty have agreed to forfeit a total of more than $1.4 million.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. This case is being prosecuted by Assistant United States Attorneys Hal Chen and Peter Jongbloed.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Nevada Man Pleads Guilty to $2 Million Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an Nevada, Mo., man has pleaded guilty in federal court to his role in a $2 million scheme to defraud Cargill, Inc. by creating fictitious scale tickets for loads of corn that were paid for but never actually delivered to the company’s Butterfield, Mo., feed mill.
Bob True Beisly, III, 39, of Nevada, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush on Tuesday, Aug. 6, 2013, to one count of wire fraud and one count of mail fraud.
In a separate but related case, Jeffrey Hobbs, 41, of Exeter, pleaded guilty on May 20, 2013, to wire fraud. Hobbs worked as a scale operator and pellet mill operator at Cargill’s Butterfield feed mill from December 1999 until March 2013. When a delivery truck would arrive at the feed mill, Hobbs was responsible for weighing each truck and its contents. Once the truck was weighed, Hobbs created a scale ticket for the company that delivered the grain, corn or feed. A copy of the scale ticket was sent to Cargill’s headquarters in Minneapolis, Minn., for processing and payment to the trucking company.
Beisly and other individuals approached Hobbs in 2002 about creating fictitious scale tickets for non-delivered loads of corn as a way to make money and ultimately defraud Cargill. Hobbs began creating completely fictitious scale tickets for Beisly and others for the delivery of loads of grain, corn or feed that did not truly exist.
Beisly owned and operated K&B Grain. Beisly obtained contracts with Cargill for the delivery of a set number of grain loads that were supposed to deliver grain, corn or another type of product to the Butterfield feed mill. Beisly admitted that he received numerous fictitious scale tickets from Hobbs for deliveries that were never actually made. Beisly also admitted that at least once a week he received a fictitious scale ticket from Hobbs that claimed he had delivered a shipment of grain to the Butterfield feed mill, when in truth and fact, no such shipment or delivery was made. Shortly after the fictitious scale tickets were created by Hobbs, Beisly received a payment from Cargill.
Hobbs initially received $300 in kickbacks for each “ghost load,” which was later increased to $500 in cash for each “ghost load.”
Cargill officials discovered the fraud when the amount of grain, corn or feed that was being paid for was inconsistent with the amount they actually received. Over a span of nine years, this fraud scheme caused losses to Cargill of approximately $2 million. According to today’s plea agreement, Cargill’s losses associated with Beisly totaled approximately $559,616. Under the terms of his plea agreement, Beisly must pay a money judgment for that amount to the government.
Under federal statutes, Beisly is subject to a sentence of up to 40 years in federal prison without parole, plus a fine up to $500,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Missouri State Highway Patrol.
Mission Man Charged and Sentenced for Assault by Striking, Beating and WoundingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man charged with Assault by Striking, Beating and Wounding has pled guilty to the charges and was sentenced on August 5, 2013, by U.S. Magistrate Judge Mark A. Moreno.
Frank Swalley Jr., age 29, was sentenced to 3 months in custody with credit for time served, and $10 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on October 1, 2011, when Swalley and others assaulted and beat the victim, which included Swalley grabbing the victim by the neck.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher. Swalley was released from custody.Milpitas Man Pleads Guilty to Illegal SF Bay Shark Sale SchemeRead the Press Release
SAN FRANCISCO - Dean Trinh pleaded guilty in federal court in San Francisco today to Conspiracy, Lacey Act violations, and Wire Fraud, for his involvement in the illegal capture and sale of California leopard sharks and nurse sharks, United States Attorney Melinda Haag announced.
In pleading guilty, Mr. Trinh admitted to taking undersized California leopard sharks from the San Francisco Bay and selling them to customers in Canada and Florida, through his business, AquatopUSA LLC, High Tech Auctions and Hightechauction.com. Trinh also admitted that he conspired to transport, sell, receive, acquire, and purchase illegally collected nurse shark pups over the internet, knowing that they were taken, possessed, transported, sold, and intended to be sold in violation of the laws and regulations of the State of Florida.
Trinh, 43, of Milpitas, California, was indicted by a federal Grand Jury on May 23, 2013, in the Northern District of California, with three counts of violating the Lacey Act, in violation of 16 U.S.C. § 3372(a)(2)(A) and § 3372(a)(4), and nine counts of Wire Fraud, in violation of 18 U.S.C. § 1343. On November 1, 2012, in the Southern District of Florida, Trinh was charged with one count of Conspiracy in violation of 18 U.S.C. § 371. Under the plea agreement, Mr. Trinh pled guilty to all counts in both cases.
The sentencing of Mr. Trinh is scheduled for November 12, 2013, before The Honorable Richard Seeborg, United States District Court, Judge in San Francisco. The maximum statutory penalty for each count in violation of the Lacey Act, 16 U.S.C. §§ 3372(a)(2)(A), 3372(a)(4), is 5 years imprisonment, 3 years supervised release, a fine of $250,000, plus restitution; for each count of Wire Fraud, 18 U.S.C. § 1343, the maximum penalty is 20 years imprisonment, three years supervised release, a $250,000 fine, plus restitution. The statutory maximum penalty for Conspiracy in violation of 18 U.S.C. § 371 is 5 years imprisonment, 3 years supervised release, a $250,000 fine, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Maureen Bessette and Thomas Watts-FitzGerald (from the U.S. Attorney’s Office for the Southern District of Florida) are the Assistant U.S. Attorneys prosecuting the case with the assistance of supervisory legal technician Kathleen Turner. The prosecution is the result of a three year investigation by the U.S. Fish & Wildlife Service.
Mexican National Residing in Valencia County Sentenced to 135 Months in Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Hector Manuel Lopez-Valle, 24, was sentenced yesterday to 135 months in federal prison for his methamphetamine trafficking conviction. Two co-defendants previously were sentenced to federal prison terms. Adaucto Chavez-Meza, 20, was sentenced last month to 135 months in federal prison for his methamphetamine trafficking conviction, and Jesus Omar Lopez-Valle, 28, was sentenced in June 2013 to 210 months in federal prison for his methamphetamine trafficking and firearms conviction.
Chavez-Meza, Jesus Lopez-Valle and Hector Manuel Lopez-Valle, all Mexican nationals, were arrested on methamphetamine trafficking charges on March 1, 2012. At the time, the three men were illegally present in the United States and living in Valencia County, N.M. They will be deported after completing their prison sentences.
According to court filings, from Feb. 21, 2012 to March 1, 2012, Jesus Lopez-Valle and Hector Lopez-Valle conspired with Chavez-Meza to sell four pounds of methamphetamine to an individual who, unbeknownst to them, was an undercover officer. The men were arrested in Albuquerque on March 1st, after they displayed more than four pounds of methamphetamine to the undercover officer. During a post-arrest interview, Chavez-Meza admitted that they intended to sell the methamphetamine to the undercover officer for approximately $60,000. Jesus Lopez-Valle also admitted that the three men intended to sell the methamphetamine to the undercover officer, and Hector Lopez-Valle admitted to transporting the methamphetamine from Belen to Albuquerque.
Chavez-Meza pleaded guilty on Feb. 25, 2013, to an indictment charging him with conspiracy and possession of methamphetamine with intent to distribute. Jesus Lopez-Valle and Hector Lopez-Valle each pleaded guilty on March 1, 2013, to a superseding indictment charging them with conspiracy and possession of methamphetamine with intent to distribute. Jesus Lopez-Valle also pleaded guilty to being an illegal alien in possession of firearms. All three men entered their guilty pleas without the benefit of plea agreements.
The case was prosecuted by Assistant U.S. Attorneys Samuel A. Hurtado and Nicholas J. Ganjei and was investigated by the Cross Border Drug Violence Squad of the Albuquerque Division of the FBI and the Las Cruces/Doña Ana County Metro Narcotics Agency.
Members of White Supremacist Group Sentenced to Prison for Hate Crime AssaultRead the Press Release
TRENTON, N.J. – Two members of the “Aryan Terror Brigade” white supremacist group were sentenced to prison today for their roles in the New Year’s Eve 2011 hate crime assault of two Middle Eastern men in Sayreville, N.J., U.S. Attorney Paul J. Fishman announced.
U.S. District Judge Joel A. Pisano sentenced Michal Gunar, 29, of East Windsor, N.J., to 33 months in prison. Gunar previously pleaded guilty to an indictment charging him with conspiracy to commit a hate crime assault, as well as the actual commission of a hate crime assault, in violation of the Matthew Shepard and James Byrd Jr., Hate Crimes Prevention Act. Judge Pisano sentenced Kyle Powell, 24, of West Collingswood, N.J., to 15 months in prison. Powell previously pleaded guilty to an information charging him with conspiracy to commit a hate crime assault.
According to documents filed in this case and statements made in Trenton federal court:
Gunar admitted attended a New Year’s Eve “meet and greet” white supremacist event at a residence in East Brunswick, N.J., on Dec. 31, 2011. That night, Gunar, Powell and Christopher Ising, 31, of Waretown, N.J., drove to an apartment complex in Sayreville with the express purpose of assaulting random, non-Caucasian individuals. Gunar brandished a knife and attacked two Middle Eastern men, shouting anti-Arab slurs. At his guilty plea proceeding, Gunar admitted he assaulted at least one man by pulling the individual out of a parked car and punching the man about the face and head, causing physical injury.Ising, a purported member of a white supremacist group known as the “Atlantic City Skins,” previously entered a guilty plea on both counts of the same indictment and charges as Gunar. He is scheduled to be sentenced on Aug. 9, 2013.
In addition to the prison terms, Judge Pisano sentenced Gunar and Powell to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola, Criminal Investigations, Newark Field Office; and detectives from the N.J. State Attorney General’s Office, under the direction of Acting Attorney General John Jay Hoffman, with the investigation.The government is represented by Assistant U.S. Attorneys Dennis C. Carletta of the U.S. Attorney’s Office National Security Unit in Newark, and Trial Attorney Fara Gold of the Criminal Section of the Justice Department’s Civil Rights Division in Washington.
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Member of International Narcotics Trafficking Conspiracy Sentenced in Manhattan Federal Court to 66 Months in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that FRANCIS SOUROU AHISSOU, 48, a citizen of Togo, was sentenced today in Manhattan federal court to 66 months in prison for participating in a conspiracy to import narcotics into the United States. AHISSOU was arrested in Monrovia, Liberia, in coordination with Liberian authorities in February 2011 and transferred thereafter to the custody of the United States. He pled guilty in May 2013 before U.S. District Judge Naomi Reice Buchwald, who imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara stated: “Francis Ahissou was all too eager to sell cocaine to purported associates of the Taliban who planned to distribute it in the United States. Today's sentence is the latest result of this Office’s campaign to hold narco-traffickers to account and destroy these dangerous drug rings.”
According to the Indictment and Complaint previously unsealed in this case, as well as statements made during court proceedings:
Beginning in the summer of 2010, AHISSOU and some of his co-defendants (the “co-defendants”) communicated with confidential sources (“CSs”) working with the DEA, who purported to represent the Taliban. The communications occurred by telephone, via e-mail, and in a series of audio-recorded and videotaped meetings over several months.
During meetings with the CSs beginning in June 2010 in West Africa, AHISSOU and his co-defendants agreed to sell multi-kilogram quantities of cocaine to the Taliban understanding that portions of the cocaine would be transported to the United States by commercial airline and then sold in this country for a profit. AHISSOU also helped arrange the sale of an approximately 800-gram sample of cocaine to the CSs in October 2010.
In addition to the prison term, AHISSOU was ordered to pay a $100 special assessment.
The charges against AHISSOU were the result of the coordinated efforts of the U.S. Attorney’s Office for the Southern District of New York and the DEA’s Special Operations Division, as well as the DEA Lagos Country Office, the DEA Warsaw Country Office, the DEA Ghana Country Office, the DEA Athens Country Office, and the DEA SECI (South East European Cooperative Initiative Regional Center for Combating Transborder Crime). Mr. Bharara praised the outstanding investigative work of the DEA and thanked the U.S. Department of Justice Office of International Affairs and National Security Division, the U.S. Department of State, and the U.S. Immigration and Customs Enforcement for their assistance. Mr. Bharara also thanked the Government of Liberia for its cooperation.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Christian Everdell, Aimee Hector, and Glen Kopp are in charge of the prosecution.
McLaughlin Woman Charged with LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, woman has been indicted by a federal grand jury.
Tabitha Good House, age 26, was indicted on July 17, 2013, on one count of Larceny.
The maximum penalty upon conviction is 5 years' custody, a $250,000 fine or both; a period of supervised release of 3 years; and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Good House is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Good House was released with conditions. A trial date has not been set.Maple Plain Man Indicted for Defrauding Mortgage Loan LendersRead the Press Release
MINNEAPOLIS—A federal indictment unsealed late yesterday charges a 38-year-old Maple Plain man with conspiring to defraud mortgage loan lenders. The indictment, which was filed on July 16, 2013, specifically charges Alpha Rashidi Mshihiri with one count of conspiracy to commit bank fraud, three counts of bank fraud, two counts of wire fraud, one count of mail fraud, and one count of money laundering conspiracy. The indictment was unsealed following the Mshihiri’s initial appearance in federal court.
The indictment alleges that from June 2006 through January 2009, Mshihiri conspired with others to defraud and obtain money from mortgage lenders by means of false and fraudulent representations. Mshihiri operated Pristine Home Loans and allegedly recruited straw buyers to purchase residential real estate properties. The straw buyers submitted fraudulent loan applications to the mortgage lenders and, in some instances, used the stolen identity others in their applications.
In support of the false loan applications, Mshihiri purportedly created false documents, such as false W-2s and fraudulent paystubs and driver’s licenses, which the straw buyers then submitted to the mortgage lenders. In some instances, the proceeds of the loans were allegedly used to pay existing mortgages, financially benefiting Mshihiri and his un-named co-conspirators. In other situations, proceeds were purportedly paid as kickbacks to the straw buyers. Every property purchased through the scheme has gone into foreclosure, resulting in substantial losses to the victim lenders.
If convicted, Mshihiri faces a potential maximum penalty of 30 years on each count. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Minnesota Financial Crimes Task Force, the Internal Revenue Service-Criminal Investigations, the United States Secret Service and the U.S. Department of Housing and Urban Development-Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Lola Velazquez-Aguilu.
The Financial Crimes Task Force was established pursuant to state law and is comprised of local, state, and federal law enforcement investigators dedicated to combating the growing problem of cross-jurisdictional financial crimes. The task force, overseen by an advisory board also created under state law, serves the entire District of Minnesota, presenting its cases to county or federal prosecutors, as appropriate.
The U.S. Attorney’s Office wants to remind people to protect themselves from mortgage fraud. For more information, visit http://www.stopfraud.gov/protect-mortgage.html.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Justice Department Files Suit to Stop San Diego Man from Preparing Tax ReturnsRead the Press Release
The Justice Department announced today that the United States has filed a civil injunction suit against Michael I. Turner, of San Diego to stop him from preparing federal tax returns.
The government complaint, filed in the U.S. District Court for the Southern District of California, alleges that Turner, who has prepared returns since at least 2004, has failed to sign or affix a Preparer Tax Identification Number (PTIN) to many of the returns that he has prepared. In addition and according to the government, Turner takes bogus deductions on his customers’ returns in order to claim larger refunds for his customers. His customers then recommend Turner as a tax preparer to their friends, which helps Turner to expand his customer base and further increase his own profits. Specifically, the government alleges that Turner claims inflated or fabricated deductions on the Schedule A of his customers’ Form 1040 tax returns, claiming that his customers have large non-cash charitable contributions and unreimbursed employee expenses. The complaint also alleges that when Turner’s customers are audited, Turner has provided false documents to those customers in an attempt to assist them in substantiating charitable contributions and employee expenses that they did not incur. According to the complaint, however, Turner has instructed his customers not to identify him as their tax return preparer in communications with the Internal Revenue Service (IRS).
The government alleges that Turner continues to prepare tax returns. According to the complaint, Turner applied for a PTIN in 2010, and has prepared at least 68 tax returns for the 2012 tax year using that PTIN.
The government seeks, among other things, that the court bar Turner from acting as a tax return preparer or assisting others in preparing or filing federal tax returns or other tax forms or documents. The government also requests that the court bar Turner from appearing as a representative on behalf of any person or entity before the IRS, and from owning, managing, controlling, working for or volunteering for a tax-return preparation business.
In the past decade the Justice Department Tax Division has obtained injunctions against hundreds of tax preparers. More information about these cases is available on the Justice Department website.
Related Materials:
United States v. Michael Turner
Complaint for Permanent Injunction and Other Relief (PDF)Jury Finds Pollock Prisoner Guilty of Drug PossessionRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that Roy Elbert Carlton, 41, a Pollock prisoner, was found guilty Tuesday by a federal jury of possessing drugs in a federal prison. United States District Judge Dee D. Drell presided over the trial.Carlton’s trial started Monday and ended Tuesday afternoon with the jury returning the guilty verdict after deliberating for 20 minutes. Witness testimony and documents admitted at trial revealed that Whitney C. Anderson visited Carlton Feb. 20, 2010 at the U.S. Penitentiary in Pollock, La. During the visit, one of the children present was sitting on Carlton’s lap. The defendant was seen taking something out of the child’s pocket and then swallowing it. The visit was terminated, and Carlton was taken to a dry cell for observation. He passed what appeared to be balloon fragments and other material that tested positive for the presence of marijuana.
Anderson pleaded guilty July 15, 2013 to one count of providing contraband to a prisoner. She faces up to five years in prison, a $250,000 fine, and three years of supervised release. Sentencing is set for Oct. 28, 2013.
Carlton faces five years in prison, a $250,000 fine, and three years of supervised release for possession of drugs in a federal prison. Sentencing is set for Oct. 30, 2013.
The FBI conducted the investigation. Special Assistant U.S. Attorney Robert J. France and Assistant U.S. Attorney Seth D. Reeg are prosecuting the case.
Joseph John Hurd Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on August 7, 2013, before Chief U.S. District Judge Dana L. Christensen, JOSEPH JOHN HURD, a 22-year-old resident of Missoula, was sentenced to a term of:
Prison: 60 months
Special Assessment: $100
Supervised Release: 5 years
HURD was sentenced in connection with his guilty plea to conspiracy to distribute cocaine.
In an Offer of Proof filed by Assistant U.S. Attorney Tara J. Elliott, the government stated it would have proved at trial the following:
In April, 2012, a Confidential Informant (CI) agreed to cooperate with the FBI regarding his drug trafficking network by providing specific information about his cocaine suppliers in Spokane, Washington and other persons involved in the distribution of cocaine in Missoula. The CI was introduced to HURD and they brokered a deal for the CI to purchase cocaine from HURD.
Beginning in August 1, 2012, the CI met with HURD to conduct a consensually monitored controlled purchase of cocaine and completed the purchase of 7.2 ounces of cocaine for $7,500. The cocaine field tested positive.
On August 23, 2012, the CI again met with HURD to conduct another consensually monitored controlled purchase of cocaine. Prior to the meeting, the CI and HURD agreed to a transaction of 4.5 ounces of cocaine for $5,000. However, the supplier never arrived and the transaction was not completed.
On August 24, 2012, law enforcement conducted an interview with HURD who admitted he was supposed to have received the ten ounces of cocaine from his supplier the previous date. HURD stated his supplier began supplying him with cocaine in January 2012. HURD had traveled to Othello for the first three transactions in January and February paying $1,000 per ounce when he purchased four ounces the first time, six ounces the second time, and six ounces the third time. HURD stated his supplier began traveling to Missoula to deliver the cocaine in February and continued on a nearly weekly basis until he was arrested. HURD estimated his supplier made about thirty trips to Missoula. HURD admitted he sold the cocaine to numerous local persons in Missoula. The total of the cocaine transactions was more than 500 grams.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HURD will likely serve all of the time imposed by the court. In the federal system, HURD 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.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on August 7, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individuals were arraigned:
DONALD RICHARD NISSEN, a 51-year-old resident of Billings, appeared on a charge of conspiracy to possess with the intent to distribute methamphetamine. He is currently detained. If convicted of this charge, NISSEN faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $10,000,000 fine, and 5 years supervised release. Assistant U.S. Attorney Brendan P. McCarthy is the prosecutor for the United States. The investigation was conducted by the Eastern Montana High Intensity Drug Trafficking Area (HIDTA) Task Force.
KAYLENE SHANE RED WOLF, a 44-year-old resident of Hardin, appeared on charges of theft from federal government receiving federal funds and theft of federal funds. She is currently released on special conditions. If convicted of these charges, RED WOLF faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release on each charge. Assistant U.S. Attorney Carl E. Rostad is the prosecutor for the United States. The investigation was conducted by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 6, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
THOMAS ANDREW QUINTON, a 32-year-old resident of Lethbridge, Alberta, appeared on a charge of travel with intent to engage in illicit sexual conduct. He is currently detained. If convicted of this charge, QUINTON faces possible penalties of a 30 years in prison, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Michael S. Lahr is the prosecutor for the United States. The investigation was conducted by the U.S. Department of Homeland Security - Homeland Security Investigations.
The defendant pled not guilty to the charge.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Houston Man Pleads Guilty to Meth Possession and Distribution ChargeRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that Ricky Martinez, 43, of Houston, pleaded guilty before U.S. District Judge Patricia Minaldi to possession of methamphetamine with intent to distribute.
According to evidence presented at the guilty plea, a Calcasieu Parish Sheriff’s deputy stopped the defendant on Feb. 13, 2012 for speeding north of Lake Charles. The deputy asked Martinez to step out of the vehicle and saw he had an open beer. The deputy searched Martinez and found $10,540. After searching the vehicle, the deputy found 10 plastic baggies containing suspected methamphetamine, a baggie containing a cutting agent, and a digital scale. The DEA Regional Laboratory in Dallas later confirmed the 10 baggies contained a total of 265.8 grams of pure or actual methamphetamine.
Martinez faces up to 10 years to life in prison, a fine of up to $10 million, and at least five years of supervised release. A sentencing date of Nov. 7, 2013 was set.
Anthony Frederick “Tony” Giaimis, 48, of Westlake, La., and Justin W. Brewer, 42, of Houston, were also charged in the same indictment with Martinez in August 2012.
A jury found Giaimis guilty on April 10, 2013 after a three-day trial to three counts related to the case. He was sentenced Aug. 1, 2013 to 262 months in prison and five years of supervised release for conspiring to distribute methamphetamine, 262 months in prison and four years of supervised release for possessing with intent to distribute methamphetamine, and 262 months in prison and six years of supervised release for felony weapon possession. He is serving the prison and supervised release terms for all three counts concurrently.
Brewer was sentenced on July 25, 2013 to 60 months in prison and five years of supervised release for possession with intent to distribute more than 50 grams of methamphetamine. He pleaded guilty on April 8, 2013.
The Westlake Police Department, Calcasieu Parish Sheriff’s Office, Lake Charles Police Department, FBI-Safe Streets Task Force, Combined Anti-drug Team (CAT) Task Force and the DEA Laboratory conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel is prosecuting the case.
Henderson Man Sentenced to over 17 Years ImprisonmentRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today, Chief United States District Judge James Dever sentenced DARNELL TYRECE HAYES, 35, of Henderson, North Carolina, to 210 months imprisonment followed by 3 years supervised release.
A Federal Grand Jury returned a Criminal Indictment on January 16, 2013, charging HAYES with one count of Possession of Ammunition by a Felon, in violation of Title 18 U.S.C. §922, and one count of Distribution of Heroin, in violation of Title 21 U.S.C. §841. On April 30, 2013, HAYES pleaded guilty to the Distribution of Heroin Charge.
The evidence in the case demonstrated that, on or about June 14, 2012, HAYES sold approximately 2.5 grams of heroin to a confidential informant working for Henderson Police Department. The evidence at sentencing established that HAYES had a long history of crimes of violence including, but not limited to, Discharging a Weapon into Occupied Property, Burning Personal Property, and Felony Speeding to Elude. HAYES also had convictions for drug trafficking, multiple assaults and multiple counts of resisting arrest.
Investigation of this case was conducted by the Henderson Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Rudy E. Renfer represented the government.
Grand Jury Returns Superseding Indictments in Homestead-Area Drug & Gun CasesRead the Press Release
PITTSBURGH, Pa. - On Aug. 6, 2013, a federal grand jury issued superseding indictments in six related cases involving drug trafficking and violence in Homestead, Pa., United States Attorney David J. Hickton announced today. The superseding indictments added new firearms and drug trafficking counts and one additional defendant, to drug and gun charges filed against 34 people on March 14, 2013. The original indictments followed a year-long federal, state, and local law enforcement investigation.
THE SUPERSEDING INDICTMENTS
The first superseding indictment, containing seven counts, named:
Brandon Thompson, 30, of Homestead, Pa.;
Antonio Hardin, 32, of Monroeville, Pa.;
James Walker, 44, of Homestead, Pa.;
Joseph Thompson, II, 25, of Homestead, Pa.;
Richard Wood, 34, of Homestead, Pa.;
Gregory Harris, Jr., 24, of Homestead, Pa.; and
Luther Harper, 27, of Homestead, Pa.According to the indictment, from in and around April 2012, to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Brandon Thompson, Hardin, Walker, Joseph Thompson, II, Wood, Harris, and Harper, conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment also charges that on or about Aug. 12, 2012, Brandon Thompson used, carried, possessed in furtherance of, brandished, and discharged firearms during and in relation to that heroin trafficking conspiracy. The indictment further charges Antonio Hardin with, on or about Feb. 11, 2013, possessing with the intent to distribute a quantity of heroin, possessing a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. Last, on or about Jan. 26, 2013, the indictment charges Richard Wood with possession with intent to distribute a quantity of heroin, and charges Walker and Hardin with distribution and possession with intent to distribute a quantity of heroin. There were no new charges added. However, Brandon Thompson and Antonio Hardin were both named in additional forfeiture allegations. Ed Cook was charged in the initial indictment for discharging a firearm during and in relation to a drug trafficking crime, and he has since pled guilty to that charge.
The second superseding indictment, containing two counts, named:
Troy Anderson, 24, of Braddock, Pa.;
Mark Felder, 25, of Duquesne, Pa.; and
Dorianne Harris, 20, of Wilkinsburg, Pa.According to the indictment, from in and around May 2012, and continuing thereafter to in and around March 2013, in the Western District of Pennsylvania and elsewhere, Anderson, Felder, and Harris, conspired with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. In terms of new charges, Anderson was charged with possession of a firearm in furtherance of a drug trafficking crime on or about March 14, 2013.
The third superseding indictment, containing three counts, named:
Sterling Marshall, 18, of Munhall, Pa.;
Tireal Wheeler, 19, of Homestead, Pa.; and
Jordan Murphy, 21, of Homestead, Pa.According to the indictment, from in and around May 2012, and continuing thereafter to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Marshall, Wheeler and Murphy conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. Additionally, the indictment charges that, during that same time period, those same defendants knowingly conspired to employ and hire persons under 18 years of age to distribute heroin. In terms of new charges, Marshall was charged with possession with the intent to distribute a quantity of heroin on or about March 14, 2013. Andre Corbett was charged in the initial indictment, and he has since pled guilty to both counts contained within that indictment.
The fourth superseding indictment, containing six counts, named:
Jay Germany, 22, of Pittsburgh, Pa.;
Brady Hall, 19, of Pittsburgh, Pa.;
Jaquan Washington, 23, of Homestead, Pa.;
Hector Guadalupe, Jr., 36, of Brooklyn, NY;
Santino Drew, 34, of New Brunswick, NJ;
Thomas Martinez, 34, of Edison, NJ; and
Louis Spinnenweber, Jr., 34, of Canonsburg, Pa.According to the indictment, from in and around May 2012, and continuing thereafter to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Germany, Hall, Washington, Guadalupe, Jr., Drew, and Martinez, conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment further charges that, during that same time period, Germany, Hall, and Washington knowingly conspired to employ and hire persons under 18 years of age to distribute heroin. Additionally, on or about Jan. 30, 2013 and Jan. 31, 2013, Drew and Martinez possessed with the intent to distribute 100 grams or more of heroin. Also, on or about Nov. 21, 2012, Spinnenweber, Jr., possessed with the intent to distribute a quantity of a heroin. Last, on or about Oct. 30, 2013, Germany and Hall possessed with the intent to distribute and did distribute a quantity of heroin, and, in a new charge, Washington engaged in that same conduct on or about March 11, 2013.
The fifth superseding indictment, containing 11 counts, named:
Bryce Harper, 26, of Homestead, Pa.;
Diamantia Serrano, 19, of McKeesport, Pa.;
Lacie Harper, 24, of Homestead, Pa.;
Ryan Harper, 36, of Munhall, Pa.;
Jamar Harper, 32, of Homestead, Pa.;
Ronnell Robinson, 19, of Duquesne, Pa.;
Seth Lindsey, 18, of Duquesne, Pa.; and
Diassandai Serrano, 18, of McKeesport, Pa.According to the indictment, from in and around July, 2012, and continuing thereafter to in and around February, 2013, in the Western District of Pennsylvania and elsewhere, Bryce Harper, Diamantia Serrano, Lacie Harper, Ryan Harper, Jamar Harper, Ronnell Robinson, and Seth Lindsey conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment further charges that, during that same time period, those same defendants knowingly conspired to employ and hire persons under 18 years of age to distribute heroin. Also, the indictment charges that on or about Sept. 19, 2012, Bryce, Ryan, and Jamar Harper, together with Diamantia Serrano, possessed with the intent to distribute a quantity of heroin.
The indictment added the following eight new counts. On or about Feb. 27, 2013, Diamantia Serrano possessed with the intent to distribute a quantity of heroin, and on that same day, his brother, Diassandai Serrano, a new defendant, possessed a firearm in furtherance of a drug trafficking crime. On March 13, 2013, Ryan Harper distributed a quantity of heroin, and on Feb.
13 and 19, 2013, Ronnell Robinson distributed a quantity of heroin. On Sept. 17, 2012, Ronnell Robinson possessed a firearm in furtherance of a drug trafficking crime, and Bryce Harper was charged with that same crime on March 14, 2013. Also on March 14, 2013, Bryce Harper was charged with being a felon in possession of a firearm.The sixth superseding indictment, containing five counts, named:
Thomas Hopes, 21, of Pittsburgh, Pa.;
Keith Harris, 22, of Homestead, Pa.;
Anthony Smith, 21, of Homestead, Pa.;
Hakeem Kirby, 19, of Homestead, Pa.;
William McDonald, 68, of Homestead, Pa.;
Ronnell Robinson, 19, of Duquesne, Pa.;
Gregory Harris, Jr., 24, of Homestead, Pa.;
Sterling Marshall, 18, of Munhall, Pa.; and
Diamantia Serrano, 19, of McKeesport, Pa.According to the indictment, from in and around May, 2012, and continuing thereafter to in and around February, 2013, in the Western District of Pennsylvania and elsewhere, Hopes, Harris, Smith, Kirby, and McDonald conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment further charges that, during that same time period, those same defendants knowingly conspired to employ and hire persons under 18 years of age to distribute heroin. The indictment also charges that on or about Dec. 18, 2012, Hopes and Kirby possessed with the intent to distribute and did distribute a quantity of heroin. Also, on March 14, 2013, Kirby possessed with the intent to distribute a quantity of heroin. Last, the indictment charges that on or about Jan. 3, 2013, Robinson, Keith and Gregory Harris, Marshall, Serrano and Hopes used, carried, possessed in furtherance of, brandished and discharged firearms during and in relation to a drug trafficking crime and a crime of violence.
PENALTIES
On the conspiracy to distribute one kilogram or more of heroin count, the law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both, for a first-time drug trafficking conviction. For those with one prior felony drug trafficking conviction, the law provides for a maximum total sentence of not less than 20 years and up to life in prison, a fine of $20,000,000 or both, and for those with two prior felony drug trafficking convictions, the law provides for a mandatory minimum sentence of life in prison.
On the firearms' counts charging possession, use, brandishing or discharge of a firearm in furtherance of a crime of violence or a drug trafficking crime, the law provides for a mandatory minimum sentence of five years if the gun is possessed in furtherance of the crime, seven years if the gun is brandished in furtherance of the crime, and 10 years if the gun is discharged in furtherance of the crime. These sentences, by law, must run consecutively to any sentence imposed for the narcotics counts. In addition, the law imposes a fine of up to $250,000. For second or consecutive counts of this nature, the law provides for a mandatory minimum consecutive sentence of 25 years.
For the firearms count charging possession of a firearm by a felon, the law provides for a maximum total sentence of up to ten years in prison, a fine of $250,000, or both. However, if the Court determines that the defendant has three previous convictions for either crimes of violence or serious drug offenses, the law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of $250,000, or both.
Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting these cases on behalf of the government.
The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Pennsylvania Office of the Attorney General, City of Pittsburgh Bureau of Police, Pennsylvania State Police, Allegheny County Sheriff's Office, McKeesport Police Department, Munhall Police Department, and the West Homestead Police Department conducted the investigation that led to the prosecution of the abovementioned individuals.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Grand Jury Returns 10-count Indictment Against Spine Surgeon Alleging Health Care FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
A federal grand jury returned a ten-count indictment against Abubakar Atiq Durrani, 44, Mason, Ohio alleging that, beginning in 2009, he convinced patients to undergo medically unnecessary spinal surgeries then billed private and public healthcare benefit programs millions of dollars for the fraudulent services.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation Cincinnati Field Office (FBI), Robert Corso, Special Agent in Charge, Drug Enforcement Administration (DEA) and Bret Flinn, Resident Agent in Charge, Defense Criminal Investigation Service (DCIS) announced the indictment returned today.
Durrani owns a private practice called the Center for Advanced Spine Technologies (CAST) with offices in Evendale and Florence, Kentucky.
The indictment alleges that, in some instances, the scheme to defraud resulted in serious bodily injury. As part of this scheme to defraud, Durrani performed unnecessary procedures and made false statements in relation to lumbar, thoracic, and cervical surgeries.
The indictment alleges that Durrani would tell the patient the medical situation was urgent and that back surgery was needed right away. He would also falsely tell the patient that he/she was at risk of grave injuries without the surgery. For cervical spine patients, Durrani would often tell a patient that there was a risk of paralysis or the head would fall off if the patient was in a car accident because there was almost nothing attaching the head to the patient’s body.
The indictment also alleges that Durrani made false statements to patients, colleagues and hospitals in order to further his scheme.
The indictment charges Durrani with five counts of health care fraud and five counts of making false statements in health care matters. Health care fraud is punishable by up to 20 years in prison. The crime of making false statements in health care matters is punishable by up to five years in prison. The indictment also seeks forfeiture of any proceeds Durrani received as a result of the scheme.
Stewart commended the cooperative investigation by agents and officers of the agencies named above, along with the Ohio Medical Board and Kentucky Medical Board, and Assistant U.S. Attorneys Timothy Mangan and Emily Glatfelter, who are representing the United States in the case.
Anyone suspecting health care fraud, waste or abuse can report it by calling the U.S. Department of Health and Human Services, Office of Inspector General at 800-447-8477. To learn more about health care fraud prevention and enforcement go to www.stopmedicarefraud.gov. Ohioans can report suspected instances of health care fraud to Attorney General DeWine’s office by calling 1-800-282-0515.
An indictment contains allegations and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Gloucester County, N.J., Man Indicted on Exploitation, Child Pornography ChargesRead the Press Release
CAMDEN, N.J. – A Gloucester County, N.J., man was indicted today by a federal grand jury in Camden for allegedly exploiting two minor boys and for possessing, receiving and distributing images of child sex abuse, U.S. Attorney Paul J. Fishman announced.
Gerrett Conover, 48, of Woolwich Township, N.J., a former Boy Scout troop leader, was charged by complaint in September 2012 with one count of receiving images of child sex abuse over the Internet and has been held in federal custody since that time. Today’s indictment charges two counts of the sexual exploitation of children, 10 counts of the receipt or distribution of images of child pornography and one count of possession of additional images of child pornography.
According to the indictment returned today and other documents filed in this case:
On Sept. 16, 2012, Conover was intercepted at the United States border coming from Canada into New York and was found in possession of a laptop computer containing images of child pornography. Federal agents obtained a search warrant for Conover’s home in Woolwich Township, and seized various computers and computer related media containing additional images of child sexual abuse, chats and emails.
The count of child exploitation with which Conover is charged is punishable by a maximum potential penalty of 30 years in prison, with a mandatory minimum penalty of 15 years in prison, and a $250,000 fine per count. Conover faces a mandatory minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison and a $250,000 fine for each count of distribution of child pornography. The possession count is punishable by a maximum potential penalty of 10 years in prison, and a $250,000 fine. Conover will be arraigned on the indictment at a later date.
U.S. Attorney Fishman credited special agents of the Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Special Agent in Charge Andrew M. McClees, with the assistance of HSI Offices in Boston, Mass.; Messina, N.Y.; and Los Angeles and San Bernardino, Calif.; and Customs and Border Protection in Ogdensburg, N.Y., with the investigation.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
The charge and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Jerome M. Brown Esq., PhiladelphiaConover Indictment
Four Plead Guilty in International, $200 Million Credit Card Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A New York man who participated in one of the largest credit card fraud schemes ever charged by the Justice Department today admitted his role in the scheme, the fourth conspirator to do so in a two-week period, New Jersey U.S. Attorney Paul J. Fishman announced.
Muhammad Shafiq, 39, of Bellrose, N.Y., pleaded guilty today before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of conspiracy to commit bank fraud. Vernina Adams, 31, of Philadelphia and Raghbir Singh, 57, of Hicksville, N.Y., pleaded guilty on July 31, 2013, to separate informations charging the same offense. Mohammad Khan, 49, of Staten Island, N.Y., pleaded guilty on July 24, 2013, to an information charging conspiracy to defraud the United States.
According to documents filed in this case and statements made in court:
Shafiq, Adams, Singh and Khan were originally charged in February 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Members of the conspiracy doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts – causing more than $200 million in confirmed losses to businesses and financial institutions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; then run up large loans.
The scope of the criminal fraud enterprise required Shafiq, Adams, Singh, Khan and their conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses of the false identities.
During their guilty plea proceedings, Shafiq, Singh and Khan admitted they helped obtain credit cards in the name of third parties – many of which were fictional – then directed the credit cards to be mailed to addresses controlled by members of the conspiracy. They also admitted they knew the cards would be used fraudulently at businesses, with Khan admitting to personally using the cards.
Adams and her conspirators also used sophisticated methods – including a network of black-market businesses called “tradelines” providers – to commit fraud.
During her plea proceeding, Adams admitted advertising on Craigslist for individuals willing to add someone onto their credit cards. She also admitted selling other members of the conspiracy fraudulent “tradelines,” including by working with Acapulco Jewelry, a complicit business in California. Adams would extend a fictitious line of credit to a false identity, backdate the line of credit so it appeared to have existed for a longer period of time, then falsely report the line of credit had been paid.
The count to which Shafiq, Adams and Singh pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gain or loss caused by the offense. The count to which Khan pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss caused by the offense.Each defendant is scheduled for sentencing by U.S. District Judge Anne E. Thompson in Trenton, N.J.: Shafiq on Nov. 14, 2013; Adams and Singh on Nov. 7, 2013; and Khan on Oct. 30, 2013.
U.S. Attorney Fishman praised special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to the guilty pleas, as well as postal inspectors, under the direction of Postal Inspector in Charge Marie L. Kelokates, and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola. He also thanked the U.S. Social Security Administration for its role in the investigation.
The government is represented by Assistant U.S. Attorneys Zach Intrater and Daniel V. Shapiro of the U.S. Attorney’s Office Economic Crimes Unit and Barbara Ward of the office’s Asset Forfeiture Unit in Newark.This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
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Defense counsel:
Muhammad Shafiq: Joseph Horn Esq., Rutherford, N.J.
Vernina Adams: Todd E. Henry Esq., Philadelphia
Raghbir Singh: David E. Levine Esq., Brooklyn, N.Y.
Mohammad Khan: Stephan Mahler Esq., Kew Gardens, N.Y.Shafiq Information
Adams Information
Singh Information
Khan InformationFounders of Mcginn, Smith & Co. Inc. SentencedRead the Press Release
McGinn Will Serve 15 Years in Prison and Smith Will Serve 10 Years
UTICA, NEW YORK - Timothy M. McGinn and David L. Smith, former owners of the Albany broker-dealer McGinn, Smith & Co., Inc. were sentenced today, in United States District Court in Utica, to significant terms of imprisonment, announced United States Attorney Richard S. Hartunian, Toni M. Weirauch, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York Field Office, and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division. McGinn was sentenced to serve 15 years in federal prison and to pay a $100,000 fine. Smith was sentenced to serve 10 years in federal prison and to pay a $50,000 fine. The defendants were convicted of conspiracy to commit mail and wire fraud, mail fraud, wire fraud, securities fraud, and filing false tax returns in February 2013, following a five-week jury trial. In addition to the prison terms and fines, U.S. District Judge David N. Hurd ordered $6,336,440 in forfeiture, a total of $5,992,800 in restitution, and 3 years of supervised release.
In sentencing McGinn, Judge Hurd said that what caused McGinn’s downfall was his arrogance in conducting business without regard for the law or the rules as long as he made money for himself and his favorite clients. In sentencing Smith, Judge Hurd said that Smith had led an impressive life and had an impressive family and friends, but what caused Smith’s downfall was going along with McGinn when he knew that what they were doing was wrong. Judge Hurd remanded both McGinn and Smith to custody to begin serving their sentences.
U.S. Attorney Hartunian said:
“As the stories told by the victims during the sentencing hearings today made clear, nothing can ever undo the terrible harm Timothy M. McGinn and David L. Smith inflicted on investors. Through false representations and material omissions, McGinn and Smith obtained investors’ hard-earned money and used it as their own. They covered their tracks by directing the creation of false accounting entries and the movement of money among accounts, and by misleading regulators. Their longstanding personal enrichment plan defrauded 841 victims of $30 million, leaving many investors devastated. The sentences imposed today send a strong message to those entrusted with investor funds that fraudulent business practices and tax cheating will not be tolerated. During the past three years, my office has charged ten people with investor fraud resulting in $64.2 million of loss to 1,676 victims. The eight defendants convicted to date were sentenced to more than 60 years in federal prison. These cases reflect our longstanding commitment to combating the corruption of the financial marketplace that shatters lives and undermines our economy. We will continue to work with all of our law enforcement partners to identify, investigate, and vigorously prosecute investor fraud cases. We are grateful for the dedication and thoroughness of IRS Criminal Investigations and the FBI in McGinn Smith and other investor fraud cases.”
Special Agent-in-Charge Weirauch stated, “In many ways, this investigation was all about trust: the trust investors place in their investment professionals and the trust that taxpayers have that their tax system will ensure that everyone pays their fair share. The defendants have now learned the cost of violating these trusts. Furthermore, today’s sentences and the earlier trial convictions will send strong messages to those who think about doing the same.”
Special Agent-in-Charge Vale stated, “We will continue to work with our partners to investigate investment fraud schemes. The resolution of this case was the direct result of outstanding teamwork between the U.S. Attorney’s Office, the Internal Revenue Service and the FBI.”
Six victims spoke at the sentencing hearings today, telling the Court that their losses represented life savings that they needed for living expenses, the support of their families, and their retirement.
According to the superseding indictment, the purpose of the conspiracy was to mislead investors and the Financial Industry Regulatory Authority, Inc. ("FINRA") regarding the safekeeping and use of investor money raised by 17 trusts, one corporation, and other entities; the risks of the trust offerings; the performance of the underlying income streams; the source of investor payments; and the improper diversion of investor money in order to obtain money from investors and enrich themselves. As a result of the defendant's conduct, the investors were not aware that the defendants had diverted approximately $4.1 million in connection with transactions related to the trusts for their own benefit and the benefit of another person.
The superseding indictment also alleged that, as part of the conspiracy, the defendants improperly diverted nearly $1 million; directed false accounting entries regarding those transactions in response to a document request from the broker-dealer's regulator, FINRA; and caused the false accounting entries to be submitted to FINRA. The alleged improper diversions fell into two categories: (a) the improper diversion of more than $473,000 of investor money from an escrow account to pay preferred clients who had unrelated investments (between May 15, 2008 and July 8, 2009); and (b) the improper diversion of $525,000 from bank accounts for three unrelated investments to pay the broker-dealer's employees (between November 14, 2008 and April 15, 2009). The superseding indictment also alleged that the defendants improperly used a corporation to conceal and disguise the true nature of the payroll diversions by passing the money from the three unrelated investments through that corporation and then to the broker-dealer. Finally, the superseding indictment alleged that the defendants misled FINRA about the preferred client diversions and the payroll diversions by (a) directing the creation of false accounting entries to conceal the true nature of these transactions in response to a document request from FINRA; and (b) causing the submission of these false accounting entries to FINRA.
Both McGinn and Smith were convicted on Counts 21 through 26 (securities fraud), which relate to the failure to disclose improperly diverted fees to investors in violation of federal securities laws. Counts 21 and 22 relate to $100,000 in fees paid in connection with TDM Verifier Trust 08, and Counts 23 through 26 relate to approximately $855,000 in fees paid in connection with Fortress Trust 08. All of these transaction fees were paid with investor money.
McGinn and Smith were also both convicted on the tax charges arising from their failure to declare the improperly diverted money on their personal tax returns for tax years 2006 through 2008 (Counts 27-29 for McGinn and Counts 30-32 for Smith). McGinn and Smith later described the money as "loans," but did not list them as such on personal financial statements. When FINRA discovered the false loan accounting entries for the diverted money, the defendants misled FINRA by directing the creation of backdated promissory notes.
Both McGinn and Smith were convicted on Count 10, and McGinn was convicted of Counts 4 through 6 and 11 through 13. Those mail and wire fraud counts relate to the Firstline Series B Trusts, which raised money from investors in connection with a loan of $2.4 million to Firstline Security, Inc., a company that generated alarm contracts. The superseding indictment alleged that the defendants did not tell investors when Firstline filed for bankruptcy and defaulted on loans. In addition, their firm sold approximately $600,000 of one of the Firstline investments without any disclosure of the bankruptcy or defaults. McGinn directed that investors receive $2 million of lulling payments by transferring money from other entities controlled by McGinn and Smith.
McGinn and Smith were both convicted on Count 14, and McGinn was convicted on Count 7. Those mail and wire fraud counts relate to the Integrated Excellence Trusts, for which the defendants raised about $1.2 million from investors in connection with a loan to benefit Integrated Excellence, Inc., which generated alarm contracts. The superseding indictment alleged that the defendants knew that the payments received from the loan were not sufficient to pay investors, but McGinn directed that investors receive lulling payments by transferring money from other entities controlled by McGinn and Smith.
McGinn and Smith were both convicted of Counts 8 and 9. Those mail fraud counts related to the improper diversion of investor money from an escrow account to pay preferred clients who had unrelated investments.
McGinn was also convicted on Counts 15 and 16. Those counts involved the diversion of approximately $142,000 of investor money from an escrow account to make payments to investors in other trusts.
Both McGinn and Smith were convicted on Count 17, which involved $35,000 Smith took directly from an escrow account holding investor funds for Integrated Excellence Sr. Trust 08. McGinn was convicted on Counts 18, 19, 20 which involved approximately $310,000 that McGinn took directly from escrow accounts holding investor funds.
This case was investigated by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation, and prosecuted by Assistant United States Attorneys Elizabeth C. Coombe, Richard D. Belliss, and Wayne A. Myers.
This case was brought in connection with President Barack Obama’s Financial Fraud Task Force, which was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes and hold accountable those who helped bring about the last financial crisis. With more than 20 federal agencies, 94 U.S. Attorney’s Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
LOCAL CONTACT:
Elizabeth C. Coombe
Assistant U.S. Attorney
Tel: (518) 431-0247Fort Thompson Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury.
Patrick Scott Pomani, age 33, was indicted on July 17, 2013, for Failure to Register as a Sex Offender. Pomani appeared before U.S. Magistrate Judge Mark A. Moreno on August 5, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; a mandatory minimum period of at least 5 years up to life of supervised release, with a violation of a condition of release possibly resulting in 2 years of additional incarceration; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
If Pomani 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.
The charge is merely an accusation, and Pomani is presumed innocent until and unless proven guilty.
The Indictment charges that Pomani failed to register as a sex offender between the 1st day of October, 2012 and the 23rd day of January, 2013, as well as between the 28th day of April, 2013 and the 16th day of July 2013.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Pomani was remanded to the custody of the U.S. Marshals Service. A trial date has been set for September 24, 2013.Former Sevierville, Tenn. Resident Convicted of Tax EvasionRead the Press Release
The Justice Department and the Internal Revenue Service (IRS) announced today that Jimmie Duane Ross of Lehi, Utah, and formerly of Sevierville, Tenn., was convicted today of five counts of tax evasion following a jury trial in the U.S. District Court for the Eastern District of Tennessee.
According to the indictment and evidence produced at trial, Ross won a monetary award of approximately $840,000 in 1999 after arbitration of an employment dispute with a former employer. Ross thereafter failed to pay the full amount of his income tax due and owing for 1999 and evaded the tax by filing a false mortgage on his residence, filing a false lien on his vehicle, dealing extensively in cash and directing funds to an offshore account. In addition, from 2004 through 2007, Ross earned commission income for referring clients to a purported Nevis-based investment company and evaded his taxes by using nominees and other means.
Following the jury verdict, U.S. District Judge R. Leon Jordan ordered that Ross be detained and scheduled the sentencing for Jan. 14, 2014. On each of the five counts of conviction, Ross faces a maximum sentence of five years in prison and a maximum fine of $250,000.
The case was investigated by Special Agents of IRS – Criminal Investigation. Trial Attorneys Kevin Lombardi and Kimberly Shartar of the Justice Department’s Tax Division prosecuted the case.
Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at www.justice.gov/tax.