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24 September 2013
Convicted Drug Trafficker Pleads Guilty to Federal Firearm ChargeRead the Press Release
PROVIDENCE, R.I. – Fernando Santana, 26, of Providence, faces up to 10 years in federal prison when he is sentenced in December, having pleaded guilty today in U.S. District Court in Providence to being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
It is also alleged that Santana violated the terms of his federal supervised release imposed in 2011, at which time he also received a term of imprisonment of 37 months for drug trafficking.
According to information presented to the court, Santana was arrested by Providence Police on May 22, 2013, following a brief foot pursuit. Santana admitted to the court that while fleeing police he stashed a loaded .357 revolver belonging to him in a stack of mattresses. He pleaded guilty to one count of being a felon in possession of a firearm.
According to information presented to the court, detectives and officers responded to a dispatch broadcast of an individual or individuals with a gun in a South Side neighborhood. As a Providence detective exited his vehicle to speak with two men who fit the description of the individuals described in the broadcast, Santana fled on foot. An officer in pursuit came upon Santana and noticed him grasping at his waist. As the officer continued the pursuit and came around the corner in a rear yard he noticed Santana retracting his hand from between a pile of mattresses. Santana was apprehended a short distance away. A loaded .357 revolver was retrieved from the pile of mattresses.
Santana is scheduled to be sentenced by U.S. District Court Chief Judge Mary M. Lisi on December 12, 2013. At sentencing, Santana faces statutory penalties for being a felon in possession of a firearm of up to 10 years in federal prison to be followed by up to 3 years supervised release.
The case is being prosecuted by Assistant U.S. Attorneys Lee H. Vilker and Richard B. Myrus.
The Bureau of Alcohol, Tobacco, Firearms and Explosives assisted Providence Police in the investigation of this matter.
Contact: 401-709-5357
[email protected]California Women Convicted of Smuggling Drugs on Airplanes to TampaRead the Press Release
Tampa, Florida - Acting United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Vanessa Cooper (39, El Cajon, California), Canetha Johnson (43, El Cajon, California) and Selena Blanchard (41, San Diego, California) guilty of conspiracy to possess with the intent to distribute and possession with intent to distribute more than 500 grams of methamphetamine. Cooper, Johnson, and Blanchard each face a maximum penalty of life in federal prison. The sentencing hearings are scheduled for December 16, 2013. All three individuals were indicted on April 11, 2013.
According to evidence and testimony presented at trial, on or about April 1, 2013, Cooper, Johnson and Blanchard departed from the airport in San Diego destined for Tampa, with the purpose of delivering approximately two pounds of high-purity methamphetamine to co-defendant Raul Carbajal. In order to get the drugs through airport security without detection, each of the women concealed the drugs on her body. On April 2, 2013, they arrived in Tampa where they were met by Carbajal. The three women then delivered the packages of methamphetamine to him. In the same manner, Cooper and Blanchard had previously delivered methamphetamine from California to Carbajal in Tampa on several occasions.
This case was investigated by special agents and local task force agents with the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Matthew Jackson.
Brooklyn Residents Arrested in International Lottery Fraud SchemeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr., announced today that four men were arrested this morning in Brooklyn, N.Y., and charged by criminal complaint with participating in a fraudulent lottery scheme being operated from Jamaica. The scheme targeted elderly citizens throughout the United States, including two seniors living in Western New York. Under arrest are: Corey Buddle, Orlando Buddle, and Otis Ricketts, all of Brooklyn, and Horace Buddle, of Montego Bay, Jamaica. The defendants are charged with conspiring to commit mail fraud, wire fraud, and money laundering. The charges each carry a maximum penalty of 20 years in prison, and fines up to $500,000.
Special Assistant U.S. Attorney Fauzia K. Mattingly, who is handling the case, stated that according to the complaint, the defendants conspired with others to defraud senior citizens by luring them into believing that they had won millions of dollars in the lottery, as well as a Mercedes Benz in many cases in exchange for fees paid up front. The scheme typically utilized contact by mail, telephone or fax and also involved high pressure tactics and threats to coerce the victims to send money. In one instance, a victim was threatened with legal action possible arrest if she did not make payments to the defendants.In response to the false claims made by the defendants, victims sent payments of more than $275,000 to a residence in Brooklyn or to designated bank accounts between March 2011 and June 2013. Additional payments of unknown amounts were sent by victims to the same address in Brooklyn. According to the complaint, at least 10 elderly victims were identified by law enforcement officials, and there are believed to be others who have been victimized by this scheme. The victims include an 83 year man from Buffalo and a 71 year old man from Rochester. Some of the funds acquired from victims in the United States were transported to Jamaica, or otherwise transferred out of the country by wire transactions or ATM withdrawals at locations in Jamaica.
“We often say if it sounds too good to be true it probably is,” said U.S. Attorney Hochul. “In this case, 10 elderly victims were promised millions of dollars and luxury cars in exchange for a fee. If they did not pay up, they were threatened. If you are approached about participating in a lottery and are asked to submit money, you need to think twice. And, if you are ever threatened with legal action or arrest, contact the proper authorities. For more information, go to www.stopfraud.gov.”
The defendants are scheduled to appear today in U.S. District Court in Brooklyn.
The criminal complaint is the result of an investigation on the part of the United States Postal Inspection Service, under the direction of Inspector In Charge Kevin Niland of the Boston Division, and Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
The fact that a defendant has been charged with a crime is merely an accusation, and the defendants are presumed innocent until and unless proven guilty.Bank Teller Convicted of Stealing over $200,000 in U.S. Treasury Tax RefundsRead the Press Release
BOSTON – A Lawrence man pleaded guilty yesterday for his role in depositing fraudulently obtained tax refunds into various bank accounts.
Robert A. Montero, 37, pleaded guilty today to 30 counts of theft of government property.
Montero was a bank teller at Metro Credit Union in Lawrence. In November 2011, an individual from the Lawrence area offered Montero a fee if Montero helped the individual to deposit and negotiate U.S. Treasury checks containing fraudulently obtained tax refunds through various bank accounts at Metro West Credit Union. Between November 2011 and December 2012, Montero, in his capacity as a bank teller, helped the individual to deposit and negotiate 30 U.S. Treasury checks worth $211,214. These U.S. Treasury checks had been obtained by filing false tax returns with the IRS in the names of third parties.
Montero faces a maximum term of 10 years in prison, three years of supervised release, restitution, and a $250,000 fine. Sentencing is scheduled for January 9, 2014.
United States Attorney Carmen M. Ortiz, Steven D. Ricciardi, Special Agent in Charge of the U.S. Secret Service in Boston, and John G. Collins, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Maxim Grinberg of Ortiz’s Major Crimes Unit.
Anchorage Man sentenced to 92 months in prison for drug conspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a man from Anchorage, Alaska, was sentenced in federal court in Anchorage for his role in an Anchorage and Fairbanks drug conspiracy.
Dalon Johnson, a/k/a, “Day Day,” 36, from Anchorage, Alaska, was sentenced today by Chief U.S. District Court Judge Ralph R. Beistline. Johnson received a sentence of 92 months in prison, and 5 years of supervised release. Johnson had previously pleaded guilty to count one of an indictment charging him with drug conspiracy.
Johnson was a member of a drug trafficking conspiracy where he and his co-conspirators attempted to conceal their drug trafficking by claiming they were involved in a legitimate business, specifically that they were “artists,” employees, or promoters of an Anchorage recording label and rap and hip hop performance group known as “Out Da Cutt” or “ODC” Entertainment and “UNDB” (Up North ‘D’ or Dope Boys). Members of this conspiracy would record rap and hip hop songs, post videos on Youtube.com, and perform local shows in Anchorage and Fairbanks. Much of their music glorified the lifestyle of selling illegal narcotics and committing other crimes. The lavish and extravagant lifestyle portrayed in their music and videos was supported by their sales of illegal narcotics and Johnson held himself out as the group’s “manager.”
Johnson has a prior federal drug trafficking conviction, and prior to imposing a sentence, Judge Beistline questioned the defendant about his chances for rehabilitation. He was asked this since he had previously been sentenced for a similar crime and after he was released from prison, he immediately returned to making the same lifestyle choices. Judge Beistline remarked that drug addiction damages families in our communities, and that Johnson was “passing poison to people for personal gain.”
Johnson was a member of a wide ranging conspiracy along with 13 co-conspirators located in Anchorage and Fairbanks. Eight defendants have already been sentenced. Donnell Johnson, Antonio Fleming, Tevoris Carter, Emma Shine, and Terrance Fleming have pled guilty for their roles in connection with the conspiracy and await sentencing.
Ms. Loeffler commended the Federal Bureau of Investigation, the Drug Enforcement Administration, the United States Postal Service, the Internal Revenue Service Criminal Investigation Division, and the Anchorage Police Department for the investigation leading to the successful prosecution of Johnson.
Anchorage Man sentenced to 144 months in prison for conspiracy to distribute methamphetamineRead the Press Release
Anchorage, Alaska -U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced in federal court to 144 months in prison after pleading guilty to conspiracy to distribute methamphetamine.
Boaphan Sengchareun, a/k/a “Kun,” 36, of Anchorage, Alaska, was sentenced yesterday by U.S. District Court Judge Sharon Gleason to 144 months in prison, to be followed by a five year term of supervised release. Sengchareun previously pled guilty to conspiracy to distribute methamphetamine.
According to Assistant U.S. Attorney Stephanie Courter, who prosecuted the case, Sengchareun worked with two other individuals to sell more than forty grams of actual methamphetamine over an estimated six month period in 2012. The conspiracy culminated in a deal where the conspirators attempted to trade methamphetamine for fully automatic weapons. Prior to joining the conspiracy, Sengchareun also sold drugs on his own, selling nearly 14 grams of methamphetamine in three separate transactions in 2011.
In sentencing Sengchareun, Judge Gleason noted that methamphetamine is an exceedingly debilitating drug that harms too many people in our community. Judge Gleason also noted the importance of deterrence in these cases, as well as the need to protect the public from people who sell dangerous drugs like methamphetamine.
Ms. Loeffler commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation for their investigation of this case.
Alton Man Sentenced for Firearm OffenseRead the Press Release
Brian L. Edelen, 25, of Alton, Illinois, was sentenced today in federal district court, in East St. Louis, Illinois, on an unlawful possession of a firearm by a previously convicted felon charge, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Edelen was sentenced to fifty-seven months in prison, to be followed by three years supervised release, a $100 special assessment, and a $300 fine. Facts presented in court revealed that on April 26, 2012, law enforcement officers conducted a parole compliance check at Edelen’s residence in Alton, Illinois. During the check, a loaded semi-automatic pistol was discovered hidden in the bottom of a trash can in his bedroom. Edelen previously served a prison term of more than one year for felony conviction.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Aliquippa Man Sentenced to 16+ Years in Prison for Federal Drug Law ViolationsRead the Press Release
PITTSBURGH - A former Aliquippa resident was sentenced to serve 200 months in prison, followed by five years of supervised release, for several violations of federal narcotics trafficking laws, United States Attorney David J. Hickton announced today.
Edward Harris, 38, was sentenced by United States District Judge Maurice B. Cohill. Harris was convicted of conspiring and attempting to possess with intent to distribute at least five kilograms of cocaine in May 2012. Harris was also convicted of possessing with intent to distribute cocaine in January 2011 and in June 2010. Harris was on bond for the June 2010 and January 2011 crimes when he committed the May 2012 crimes.
Assistant United States Attorney Craig W. Haller prosecuted the case on behalf of the United States.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania State Police, the Pittsburgh Bureau of Police and the Penn Hills Police Department for conducting the investigations that led to the convictions and sentence in this case.
23 September 2013
West Orange, N.J., Woman Admits Stealing Nearly $100,000 from an Elderly Woman Living on Social SecurityRead the Press Release
TRENTON, N.J. – A West Orange, N.J., woman who defrauded an elderly victim of almost $100,000 – by taking the victim’s Social Security payments and secretly applying for a reverse mortgage on the victim’s home – admitted her crimes today in Trenton federal court, U.S. Attorney Paul J. Fishman announced.
Shawn L. Craig, 47, pleaded guilty to two counts of an information: mail fraud and filing false personal federal income tax return for 2011 by not disclosing income including money fraudulently obtained from her victim. Craig entered her guilty plea before U.S. District Judge Michael A. Shipp.
According to documents in this case and statements made in court:
In November 2010, Craig entered into a general power of attorney with the victim, an elderly woman, to serve as her attorney-in-fact. In that position, Craig was trusted to act in the victim’s best interest and to arrange for the payment of the victim’s living expenses.
After gaining access to the victim’s bank accounts, Craig diverted a portion of the victim’s funds for her own benefit and the benefit of her family, including to pay her automobile insurance; purchase a bar and bar stools; make a tuition payment; and pay for entertainment at the Wachovia Center in Philadelphia. At the time Craig made those purchases, the funds in the victim’s accounts consisted primarily of the victim’s Social Security benefits.
In December 2010, Craig submitted an application in the victim’s name to a commercial lender for a reverse mortgage on the victim’s residence in East Orange. When the victim refused to sign a specific power of attorney permitting the closing of the reverse mortgage to go forward, Craig forged the victim’s signature on the document and presented it to the title agent at the title agent’s office in Morristown, N.J.
Craig used the money from the reverse mortgage to purchase items at retail establishments including Gucci, Coach, Nike, Apple, Footlocker and various other shoe stores; pay for meals and entertainment at restaurants, liquor stores and other establishments, including the Taj Mahal in Atlantic City, N.J., the Staples Center in Los Angeles and Amazing LA Tours in Santa Monica, Calif.; fund travel to, and stays at, hotels in New Jersey, California and Florida; and pay personal bills, including automobile insurance, gas and electric, cell phone and cable bills.
In June 2011, Craig was notified that the general power of attorney had been revoked, so she transferred the victim’s funds to a new bank account. In all, Craig misused approximately $99,000 of the victim’s funds.
Craig also admitted that she caused a tax preparer to prepare and electronically file with the IRS a false and fraudulent personal income tax return for tax year 2011, by not disclosing as income the funds that she had fraudulently obtained from the victim.
The mail fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The tax charge carries a maximum potential penalty of three years in prison and a $250,000 fine. In addition, the plea agreement requires Craig to make restitution to the victim. Sentencing is scheduled for Jan. 2, 2014.
U.S. Attorney Fishman credited special agents of the United States Department of Housing and Urban Development, Office of Inspector General, Northeast Region; the FBI, under the direction of Special Agent in Charge Aaron T. Ford; IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge Edward J. Ryan.
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Defense counsel: Thomas R. Ashley Esq., Newark, N.J.
Craig Information
Wagner Man Sentenced to 210 Months for Second Degree Murder and Assault with Intent to Commit MurderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wagner, South Dakota, man convicted of Second Degree Murder and Assault with Intent to Commit Murder was sentenced on September 23, 2013, by U.S. District Judge Karen E. Schreier.
Dancing Bull Fischer, age 24, was sentenced to 210 months in custody, to be followed by 3 years of supervised release.
Fischer was indicted for the charges by a federal grand jury on December 4, 2012. He pled guilty on June 26, 2013.
The conviction stems from an incident that took place on November 27, 2012 at a house party in the Wagner area, where Fischer shot his uncle, Anthony Fischer Sr., at close range and killed him. He also shot and seriously injured his cousin, Dominic Fischer.
This case was investigated by the Yankton Sioux Tribe Law Enforcement Services, Bureau of Indian Affairs Law Enforcement Services, the South Dakota Division of Criminal Investigation, and the Federal Bureau of Investigation. Assistant U.S. Attorney Thomas J. Wright prosecuted the case.
Fischer was immediately turned over to the custody of the U.S. Marshals Service.
U.S. Attorney Goodwin and Huntington Police Chief Launch Film and Facebook Page to Fight Prescription Pill AbuseRead the Press Release
Goodwin and Holbrook say film’s anti-drug message will reinforce prevention efforts
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin, joined by Huntington Police Department Chief W.H. “Skip” Holbrook today met with students and faculty at Huntington Middle School to launch a film and Facebook page designed to educate young people about the dangers of prescription drug abuse.
“Prescription drug abuse has been like no other drug problem we’ve ever faced,” U.S. Attorney Booth Goodwin said. “The biggest problem in this district is legal drugs.”
Goodwin continued, “For many people, especially adolescents, the road to addiction starts with pills they find in their parents’ or grandparents’ medicine cabinets. We’ve seen time and again that when people begin experimenting with pills, they eventually move to cheaper alternatives, like heroin, to feed their addiction.”
Goodwin said that building relationships between the law enforcement and education communities is essential toward strengthening prevention efforts. “We commissioned this film in an effort to get students’ attention. They must understand that prescription pill abuse has real consequences. It can send a person’s life into a downward spiral in the blink of an eye,” Goodwin said.
The educational film, known as “E.O.D. Equal Opportunity Destroyer” or “E.O.D.,” was developed through a partnership between the U.S. Attorney’s Office for the Southern District of West Virginia and the Huntington Police Department. It was funded by a grant from the West Virginia Division of Justice and Community Services. The 17-minute film features the true stories of a West Virginia father and a young woman whose lives have been tremendously altered by prescription drug abuse.
Goodwin debuted the E.O.D. film during a statewide education conference at the Charleston Civic Center in June. Since then, Goodwin has shown the film at schools and professional conferences throughout the state, in an effort to educate the public about the dangers associated with prescription pill abuse.
Goodwin said, “We hope people will see this film and decide to share it. They can do so through the web site: www.wvsafeschools.org and now on Facebook: www.facebook.com/EODWV.”
"Opiate abuse transcends all of society; it does not discriminate,” Huntington Police Chief Skip Holbrook said. “This issue is absolutely the most pressing law enforcement and public health issue facing our community. We’ve seen the tragic results of opiate addiction at an alarming rate.”
Holbrook continued, “We’ve seen a number of overdoses in just the last few weeks. Our community is still mourning the death of three young adults. Each overdose call is like a punch in the gut for me -- it breaks my heart."
The Centers for Disease Control and Prevention (CDC) statistics show that nearly 15,000 people die every year of overdoses involving prescription painkillers. In 2010, one in 20 people in the United States (age 12 or older) reported using prescription painkillers for nonmedical reasons. West Virginia has maintained one of the nation’s highest drug overdose death rates. Most of the overdoses have involved prescription painkillers.
The official E.O.D. video can also be viewed on You Tube by clicking the following link: http://www.youtube.com/watch?v=Dr3jN6atZ44
Follow us on Twitter: SDWVNews
Two North Jersey Women Admit Roles in Scheme to Defraud Banks and Credit Card Companies Out of Millions of DollarsRead the Press Release
NEWARK, N.J. – Two members of a large-scale and sophisticated identity theft scheme today admitted their roles in defrauding banks and credit card companies out of millions of dollars, U.S. Attorney Paul J. Fishman announced.
Rita S. Kim, 49, of Fort Lee, N.J., and Hyon-Suk Chung, a/k/a “Clara,” 50, of North Bergen, N.J., each pleaded guilty before U.S. District Judge Katharine S. Hayden to Count One of a Second Superseding Indictment charging them with conspiracy to commit mail and wire fraud.
According to documents filed in this case and statements made in court: Kim and Chung conspired with Sang-Hyun Park, a/k/a “Jimmy,” and others to defraud banks and credit card companies. Park obtained Social Security cards beginning with the prefix “586,” which were issued by the United States to individuals, usually from China, who were employed in American territories, such as Guam. The individuals from China who were issued these Social Security numbers never established credit files or scores in the United States – these Chinese identities were essentially blank slates with no corresponding credit files or scores. Kim and Chung engaged in the fraudulent build-up of credit scores associated with these Chinese identities by adding them as authorized users to their credit card accounts in exchange for a fee from Park and his associates.
Kim and Chung admitted they received information related to the Chinese identities necessary for the credit build-up from Park’s associates, such as Sung-Sil Joh, a/k/a “Jenny,” and Young-Hee Ju, a/k/a “Stephanie.” Joh and Ju have pleaded guilty in connection with their roles in the scheme and await sentencing.
By attaching the Chinese identities to their credit card accounts, Kim and Chung increased the credit scores associated with the Chinese identities to between 700 and 800. Kim and Chung each admitted that they created credit scores for approximately 100 Chinese identities. They also acknowledged that their criminal conduct caused credit card companies and other lenders $2,047,651 in losses.
Kim and Chung each face a maximum potential penalty of up to 60 months in prison and will be ordered to pay restitution and forfeiture of more than $2 million. Sentencing for both Kim and Chung is scheduled for Jan. 8, 2014.
Park, Kim, Chung, and more than 50 other individuals were charged in this scheme on Sept. 16, 2010. To date, more than 50 defendants have pleaded guilty and two remain at large. Park pleaded guilty on Jan. 9, 2012, related to his role in the enterprise and is awaiting sentencing.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and the U.S. Department of Homeland Security’s Immigration and Customs Enforcement Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor John L. Molinelli and the Office’s Chief of Detectives, Steven Cucciniello, for their work leading to today’s plea.
The government is represented by Assistant U.S. Attorneys Anthony Moscato of the U.S. Attorney’s Office Organized Crime/Gangs Unit and Jane Yoon of the Criminal Division in Newark.
As for other members of the Park Criminal Enterprise, the charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Defense Counsel: Kim: Stephen N. Dratch Esq., Livingston, N.J.
Chung: Thomas Ambrosio Esq., Lyndhurst, N.J.Two Former Real Estate Brokers Plead Guilty to Conspiring to Fraudulently Obtain the Sales Proceeds of Million Dollar Homes in San Diego and Del Mar by Filing Fictitious Title DocumentsRead the Press Release
United States Attorney Laura E. Duffy announced that Adel Afkarian and Atef Afkarian each entered a guilty plea in federal court in San Diego today to count one of an information charging them with conspiracy to commit mail fraud and wire fraud, in connection with a fraud scheme involving sales of million-dollar homes in San Diego and Del Mar, California.
In connection with the entry of their guilty pleas, both defendants, who worked through entities known as The Better Mortgage Company and Elite Coast Realty, admitted that they fraudulently obtained the entire proceeds of the sales of homes in Del Mar, La Jolla, and San Diego from innocent purchasers who were unaware that the defendants had hidden the existence of outstanding liens on the properties held by institutional lenders. The defendants also acknowledged that they used sham entities to execute and record documents falsely purporting to affect the legal title to the properties, including fraudulent deeds of trust and reconveyances that falsely purported to totally eliminate the existing debt to institutional lenders secured by the properties. During the course of the scheme the defendants sold their own property and properties of others with a combined sales price of more than $4,000,000.
Defendants Adel Afkarian and Atef Afkarian will appear before United States District Judge John A. Houston for sentencing on March 17, 2014, at 8:30 a.m.
DEFENDANTS Criminal Case No. 13CR1469-JAH Adel Afkarian
Atef Afkarian SUMMARY OF CHARGESCount 1: Title 18, United States Code, Section 371 - Conspiracy
INVESTIGATING AGENCY
Maximum penalties: 5 years' imprisonment, $250,000 fine or twice the gross pecuniary gain or twice the gross pecuniary loss (whichever is greatest), $100 special assessment, 3 years of supervised releaseFederal Bureau of Investigation
Two Brothers Plead Guilty to Defrauding Sports FansRead the Press Release
United States Attorney Laura E. Duffy announced that twin brothers Anthony Donald Casias and Leo Ronald Casias, Jr., pled guilty to a scheme to defraud local sports fans through their company, "L & T Sports Events, Inc."
According to court documents, clients of L&T Sports paid in advance for travel, lodging, transportation, and game tickets to out-of-town sporting events, such as San Diego Chargers "away" games, other NFL games, and collegiate sporting events. The brothers told customers that L&T Sports purchased specific flights, game tickets, and hotel accommodations for them for a set amount of money. The defendants even promised clients that L&T Sports obtained tickets in specific seating areas (for example, "lower level corner end zone" or "club level" seating), accommodations at specified hotels, and seats on specific airline flights, to reassure clients that the services clients paid for would be provided when the clients arrived at the game destinations.
The defendants admitted today that once the clients paid the advance fees in reliance on the brothers' statements, the defendants fraudulently diverted the funds to other uses, thereby leaving clients stranded in other cities without hotel accommodations, transportation, game tickets, and flights back to San Diego.
Court documents indicate that on at least one occasion the defendants used one individual's credit card to pay for another L&T Sports client's trip to Hawaii. Furthermore, according to individuals who addressed the court at today's guilty plea, the defendants borrowed money from victims, claiming that the funds would be used to purchase specific travel-related services to keep the business afloat. Instead, the brothers used the money for personal expenses, such as car payments and cable bills, and failed to repay the victims. One elderly individual informed the court that the brothers had obtained from him the money he had saved for his own cremation.
The court remanded both defendants into custody. The defendants will next appear before Judge John A. Houston on October 4, 2013, at 1:00 p.m. for a further hearing on whether they will remain in custody pending sentencing. They will appear before Judge Houston for sentencing on January 6, 2014, at 8:30 a.m.
If you are a victim of L&T Sports, please contact the FBI at (858)320-1800.
DEFENDANTS Criminal Case No. 12CR4966-JAH Anthony "Tony" Donald Casias
Leo Ronald Casias, Jr. SUMMARY OF CHARGECount 1: Title 18, United States Code, Section 1349 - Conspiracy to Commit Wire Fraud. Maximum penalties: 20 years' imprisonment, $250,000 fine, $100 special assessment, 3 years of supervised release, mandatory restitution to victims.
INVESTIGATING AGENCYFederal Bureau of Investigation
Two Brook Park Men Plead Guilty to $2 Million Food Stamp FraudRead the Press Release
Two Brook Park men pleaded guilty today to defrauding the Supplemental Nutrition Assistance Program (formerly the Food Stamp Program) out $2 million from four Cleveland stores where they accepted food stamps for ineligible items such as beer and cigarettes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Saed (Sam) Wahdan, 41, and his brother, Maher (Mario) Wahdan, 42, each pleaded guilty one count of conspiracy to commit food stamp fraud, one count of food stamp fraud and two counts of unlawful redemption of food stamps. Maher Wahdan also pleaded guilty to an additional count of theft of public funds.
“The food stamp program has provided nutritious food to thousands of hungry families over the years,” Dettelbach said. “We will continue to work to recover money stolen from the program and eradicate waste, fraud and abuse of government programs.”
The Wahdans are scheduled to be sentenced on April 24, 2014.
Nidal Jaber, 45, also of Brook Park, was also indicted for his role in the conspiracy. His charges are pending.
Between January 2008 and March 2012, the Wahdans and others conspired to commit more than $2 million in food-stamp fraud through four of their businesses: One Stop Beverage, 5105 Franklin Blvd.; Bridge Deli and Beverage, 4700 Bridge Ave.; Franklin Beverage and Deli, 4719 Franklin Blvd., and Scott Food Mart, 951 Linn Drive.
The Wahdans owned and operated all four stores but put them in the names of other people to conceal the fact that Saed Wahdan had a prior conviction for food stamp trafficking and Maher Wahdan had a prior conviction for impersonating an officer – both of which precluded their participation in the food stamp program, according to court documents.
The defendants used their businesses to exchange customer food stamps for cash and other unauthorized items, including beer and cigarettes. They also purchased food stamp cards from customers and used them at other grocery locations to purchase inventory for their stores and for their personal use, according to court documents.
The indictment seeks to forfeit property derived from the proceeds of the criminal conduct of the Wahdans, including the following Cleveland properties: 9604 Dennison Ave.; 3353 West 44th Street; 3374 West 130th Street; 1452 West 75th Street and 951 Linn Drive.
This case is being prosecuted by Assistant U.S. Attorneys Christos N. Georgalis, Vasile Katsaros and James Morford following an investigation by the U.S. Department of Agriculture, Office of Inspector General-Investigations and Department of Homeland Security, Homeland Security Investigations.
Topeka Man Sentenced for Armed RobberyRead the Press Release
TOPEKA, KAN. - A Topeka man has been sentenced to seven years in federal prison for taking part in an armed robbery at a Little Caesars Pizza restaurant, U.S. Attorney Barry Grissom said today.
David Pierre Wigfall, 28, Topeka, Kan., pleaded guilty to aiding and abetting a robbery in which the robber brandished a firearm. In his plea, Wifgall admitted that on March 1, 2013, he drove a white Cadillac occupied by co-defendants Alonzo Nathan Lax, Johnnie Lee McCall and Jordan Lucas. At McCall’s direction, Lax agreed to rob Little Caesars Pizza at 2620 SW 6th Street, Suite B, in Topeka. Wearing a blue hooded sweatshirt, gloves and a black ski mask, Lax entered the restaurant, brandished a firearm and demanded money. A clerk saw him leave the restaurant and get into the passenger side of the Cadillac.
A few minutes later, officers of the Topeka Police Department found the Cadillac parked at a residence in the 1000 block of SW Plass and determined that it was registered to Wigfall. They kept watch on the car until he got in and drove away. When they stopped him they recovered a mask and coins from the robbery.
Co-defendants include: Johnnie Lee McCall, who is set for sentencing Oct. 7.
Jordan Christopher Lucas, who is set for sentencing Oct. 28.
Alonzo Lax, who is set for sentencing Oct. 7.
Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.Tampa Tax Fraudster SentencedRead the Press Release
Tampa, Florida - United States District Judge Elizabeth A. Kovachevich sentenced Maurice Larry today to eight years and five months in federal prison for conspiracy to defraud the United States Treasury through tax fraud and aggravated identity theft. As part of the sentence, a forfeiture money judgment in the amount of $181,890 was entered. In addition, specific items purchased with fraud proceeds, and other substitute assets, were also ordered to be forfeited including two 2010 Chevrolet Camaros, a 1986 Chevrolet Monte Carlo, a motor scooter, laptop computers, and assorted jewelry. The sentencing hearing for Larry's co-defendant, Marterrence Hollaway, a/k/a/ Quat, is scheduled for October 16, 2013, at 2:00 p.m. before Judge Kovechevich.
According to court documents, in September 2010, Holloway and Larry filed fraudulent tax returns from a hotel room at the Howard Johnson Hotel on 50th Street in Tampa. The room was booked in Larry's name. The investigation revealed that agents located four computers which were used to electronically file fraudulent tax returns in the names of deceased individuals. Ledgers and lists of stolen names, dates of birth and social security numbers were also found in the room. The lists of names also had a six-digit alpha code or password next to them to be used for electronic access. Some of the names were annotated with either "A" or "R" next to them to indicate that a tax return filed in that name was either accepted or rejected. Multiple reloadable debit cards were also found in the hotel room along with ATM receipts for cash withdrawals, and approximate $3,700 in cash. Larry and Holloway admitted to filing fraudulent tax returns on the computers while staying at the hotel. The investigation also revealed that in May 2012, Larry used a fraudulent debit card at a local bank ATM machine. The card was loaded with more than $9,900, that were traced to a fraudulently filed tax return.
This case was investigated by the Internal Revenue Service, the United States Secret Service and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Maurice Larry is also scheduled for sentencing tomorrow, September 24, 2013, at 10:30 A.M. before United States District Judge James S. Moody, Jr. Larry will be sentenced for tax fraud and aggravated identity charges filed in a separate case, United States v. Rashia Wilson and Maurice Larry, Case No. 8:12-cr-552-T-30TGW. He pleaded guilty in that case in April 2013.
Spokane Couple Sentenced for Distributing MethamphetamineRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Mark William Bush, age 38, and Crystal Kaye Peterson, age 31, both of Spokane, Washington, were sentenced after pleading guilty to federal drug charges on June 27, 2013. Mark William Bush pleaded guilty to three counts of delivery of methamphetamine and one count of possession of more than 50 grams of actual methamphetamine with intent to deliver. Crystal Kaye Peterson pleaded guilty to two counts of delivery of methamphetamine. Now, Senior United States District Court Judge Justin L. Quackenbush sentenced Mark William Bush to a 168-month term of imprisonment, to be followed by a five-year term of court supervision upon release from Federal prison. Judge Quackenbush sentenced Crystal Kaye Peterson to a 92-month term of imprisonment and a three-year term of court supervision following release from Federal prison.
According to information disclosed at the change of plea and sentencing hearings: members of the Spokane County Sheriff's Office conducted an investigation in March of 2013 during which three undercover purchases of methamphetamine were made from Mark William Bush. During two of these purchases, Mark William Bush was accompanied by his wife, Krystal Kaye Peterson. The third undercover purchase was conducted in the residence that Mark William Bush shared with Krystal Kaye Peterson. The undercover investigation led to the issuance of a search warrant for the residence, which was served on April 4, 2013. During the search, detectives located approximately 200 grams of methamphetamine together with scales and drug records. Both Mark William Bush and Crystal Kaye Peterson had a record of convictions for offenses that included possession of controlled substances.
Michael C. Ormsby said, "The Spokane County Sheriff's Office and the Drug Enforcement Administration should be commended for their on-going commitment to investigate aggressively individuals trafficking in methamphetamine. This case involved a significant amount of methamphetamine, an addictive dangerous drug which has devastating effect on individuals, families, and communities. The United States Attorney's Office will similarly continue its on-going commitment to prosecute methamphetamine traffickers and to seek appropriate punishment for their criminal conduct."
This investigation was conducted by the Spokane County Sheriff's Office and the Drug Enforcement Administration. The case was prosecuted by Timothy J. Ohms, an Assistant United States Attorney for the Eastern District of Washington.
13-CR-00069-JLQ
Scappoose Woman Sentenced for Bank LarcenyJade Carnahan convicted of embezzling $400,000 from local credit unionRead the Press Release
PORTLAND, Ore. – Jade Carnahan, 35, of Scappoose, Oregon, was sentenced today by U.S. District Court Judge Marco A. Hernandez to 18 months in prison for the crime of bank larceny. In addition to her prison term, the Court also ordered Carnahan to serve three years of supervised release following her release from prison and to repay $408,062.38 in restitution.
Carnahan was the Operations Officer at the Rivergate Federal Credit Union located on N. Ramsey Blvd in Portland, Oregon. In that capacity, she had access to customer account information. Between 2005 and 2012, she embezzled more than $400,000 from the bank vault and from customer accounts, including elderly customers, converting the money to her own use. At sentencing, Carnahan blamed an addiction on pain medication in accepting responsibility for her crime.
“Customers depend on the employees of their local credit unions to guard their money, not steal it,” said U.S. Attorney Amanda Marshall. “Crimes like this are especially offensive when perpetrated against seniors and have a lasting effect on the trust we place in our financial institutions.”
“Drug abuse helps to drive crimes of opportunity,” said Gregory Fowler, Special Agent in Charge of the FBI in Oregon. “In this case, the defendant was in a position of trust to guard her bank’s funds and those of its customers. She broke that trust, using her access as a bank employee to feed a drug habit. Addiction to prescription pain killers can be just as devastating as street drugs, such as crack and heroin.”
The investigation was initiated by the Portland office of the FBI. The case was prosecuted by Assistant U.S. Attorney Scott Erik Asphaug.
Rolla Woman Sentenced to 30 Years for Sexual Exploitation of a MinorRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Sept. 23, 2013, Michelle Laducer, 38, Rolla, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on two charges of sexual exploitation of a minor. Laducer pleaded guilty to the charge on June 17, 2013.
Judge Hovland sentenced Laducer to serve 30 years in federal prison, the statutory maximum, to be followed by lifetime supervised release. Laducer was ordered to pay restitution of $1,223.16 and to pay a $200 special assessment to the Crime Victim’s Fund. Laducer was also ordered to register as a sex offender.
Laducer produced numerous images of a minor engaging in sexually explicit conduct using a cellular smart phone with camera capabilities. Laducer also transported a juvenile within North Dakota so that another adult could take sexually explicit pictures of the juvenile. This conduct occurred between Jan. 1, 2012 to Dec. 31, 2012.
The case was investigated by the North Dakota Internet Crimes Against Children Task Force and was a cooperative effort of Homeland Security Investigations, the North Dakota Bureau of Criminal Investigation, the North Dakota Parole & Probation, and the Bismarck Police Department, with the assistance of the Burleigh County State’s Attorney’s Office.
This case was brought as a 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 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.
Assistant U.S. Attorney Gary Delorme prosecuted the case.
Registered Nurse and Disbarred Attorney admit stealing over Two Million Dollars from Elderly Woman's EstateRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that registered nurse, Brian Ben-Israel, and disbarred California attorney Philip Eric Myers, have pled guilty to mail fraud and wire fraud charges.
Ben-Israel, 53, formerly of Anchorage, Alaska, pled guilty to mail fraud, wire fraud and filing a false tax return on September 16, 2013. Philip Eric Myers, 61, of Santa Barbara, California, pled guilty to mail fraud and wire fraud charges on September 20, 2013. Both Myers and Ben-Israel admitted to Chief U.S District Court Judge Ralph R. Beistline that they devised a scheme to obtain in excess of $2 million dollars between May 2007 and August 2009 from the trusts of Juanita Gielarowski, now deceased.
According to court documents, Ben-Israel was a registered nurse residing in Anchorage and working at Meridian Psychiatric Consulting Group. Myers was an attorney licensed in the State of California and was versed in trust and estate matters. In 2004, Ben-Israel was a business partner and friend of Myers.Ben-Israel met and befriended Ms. Juanita Gielarowski and her daughter, Linda Stowers, who were both patients of Meridian Psychiatric Consulting Group. Ben-Israel became a health care provider and “financial advisor” to both. Ben-Israel introduced Myers to Stowers and Gielarowski.
Ms. Gielarowski was the trustee of the Juanita V. Gielarowski Revocable Trust. This trust was established for the purpose of conserving and using the assets for the benefit and care of Ms. Gielarowski. In May 2007, Ms. Gielarowski’s medical condition had severely deteriorated. Knowing of Ms. Gielarowski’s deteriorating condition, Ben-Israel worked with Myers to obtain control over assets of the Juanita V. Gielarowski Revocable Trust by creating a new trust. The effect of this action was to give Ben-Israel access to and control of the assets of the Juanita V. Gielarowski Revocable Trust. Subsequently, Ben-Israel and Myers diverted over two million dollars to the personal benefit of Ben-Israel and Myers.
The actions of Ben-Israel and Myers completely depleted the Juanita Gielarowski estate by August 2009, and caused Ms. Gielarowski to be moved from her long established home to a state funded elder care facility where she died in July 2010.
Ben-Israel is scheduled to be sentenced on December 19, 2013, and Myers is scheduled to be sentenced on January 17, 2014.
The United States is seeking forfeiture and restitution against Ben-Israel; Myers has agreed to forfeiture and restitution in the amount of $1,081,000.
Ms. Loeffler commends the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division and the Anchorage Police Department for the investigation of this case. Ms. Loeffler also commends the State of Alaska Office of Elder Fraud & Assistance who provided assistance in this investigation.President of Argyll Equities Sentenced to Serve 15 Years Relating to $80 Million International Securities Fraud SchemeRead the Press Release
United States Attorney Laura Duffy announced today that Douglas McClain, Jr. ("McClain"), President of Argyll Equities, Inc., was sentenced today by United States District Court Judge Roger T. Benitez to serve 15 years in federal prison and ordered to pay $81,731,879.98 in restitution, for his role in a multi-million dollar stock loan fraud scheme which defrauded victims in the United States, Canada, Mexico, Panama, China, England, and Belgium. McClain was also ordered to forfeit several million dollars in assets that were the proceeds of the fraud, including cash and securities held in brokerage accounts, a luxury home in Florida, a houseboat, and diamond jewelry.
On April 13, 2012, McClain was charged in an indictment with 27 counts of conspiracy, mail fraud, wire fraud, securities fraud, and money laundering. On May 31, 2013, a federal jury returned guilty verdicts on all counts in the indictment against McClain.
According to the evidence presented a trial, McClain owned and controlled several entities that did business in San Diego, California, Florida, Texas, and Georgia under the name "Argyll." Beginning in at least 2004, McClain conspired with loan brokers to defraud the public, and borrowers, by falsely representing that Argyll was an institutional lender with significant cash to lend to corporate executives and other individuals. According to court records, McClain, and others, fraudulently induced corporate executives to pledge millions of dollars’ worth of stock the executives held in publicly traded companies as collateral for loans by falsely representing that the borrowers' stock would not be sold unless there was a default on the loan.
The evidence presented at trial showed that McClain's entities had no cash to lend and, instead, survived for years by immediately selling borrowers stock on the day after the stock was pledged as collateral. The proceeds from the sale of the stock were used to fund the loans creating the appearance that the Argyll entities had plenty of cash to lend.
The evidence also showed that McClain, and others, fraudulently induced the borrowers to make monthly interest payments on their loans by falsely representing that their collateral was safe and would be returned as long as they did not default. At the end of the loan terms, the borrowers paid off their loans. Instead of returning the stock to the borrowers, McClain kept the money and provided false excuses about why he could not return their stock.
The evidence further showed that McClain's unauthorized sales of stock held by insiders of publicly traded companies caused the stock price to plummet which defrauded purchasers of these publicly traded securities who purchased stock through public stock exchanges.
United States Attorney Duffy praised the efforts of the FBI for its investigation of the case. U.S. Attorney Duffy stated, “The evidence at trial showed how McClain was able to steal publicly traded securities from unsuspecting corporate insiders through an elaborate scheme involving an international network of loan brokers that deceived the public into believing that McClain’s entities were legitimate lenders. This case is a reminder to the public to be extremely cautious when pledging property to unregulated third party lenders.”
FBI Special Agent in Charge, Daphne Hearn, commented, “This investigation highlights the need for consumers to do their own homework before entering into business arrangements and not simply take the word of the other person, especially when it comes to pledging stocks, bonds or other negotiable instruments as collateral. I commend the U.S. Attorney's Office and the FBI Agents and professional employees who worked so diligently to bring this matter to justice.”
This case was investigated by the Federal Bureau of Investigation-San Diego Division.
DEFENDANT Case Number: 12cr0918BEN Douglas A. McClain, Jr. SUMMARY OF CHARGESCount 1: Conspiracy (Title 18, United States Code, Section 371): Counts 2-8 Mail Fraud (Title 18, United States Code, Section 1341
INVESTIGATING AGENCY
Counts 9-23 Wire Fraud (Title 18, United States Code, Section 1343)
Count 24 Securities Fraud (Title 15, United States Code, Sections 78j(b) and 78ff)
Counts 32-35 Money Laundering (Title 18, United States Code, Section 1957)Federal Bureau of Investigation
Pound Ridge Man Sentenced to Eleven Years for Luring Young Foreign Women to His Home for Sex CrimesRead the Press Release
Earlier today, Joseph Yannai, author of The International Who’s Who of Cooks (2004-2005), was sentenced to a term of imprisonment of 11 years following his conviction after trial for enticing women to travel to the United States from abroad so that he could commit sex crimes against them, forced labor, and several immigration crimes. The proceeding was held before Senior United States District Judge Edward R. Korman at the United States Courthouse in Brooklyn, New York.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York, and Janet DiFiore, Westchester County District Attorney. The case was jointly investigated with the New York State Police Department and Pound Ridge Police Department.
The government’s evidence at trial established that between January 2003 and March 2009, Yannai searched au pair websites for young women from around the world to recruit to work in his home, which he shared with his wife. Yannai told the women that the work involved domestic services and clerical assistance. Yannai, however, used deception and fraud in recruiting the victims, even posing as two different women, “Joanna” and “Sylvia,” who had supposedly worked for Yannai before and who extolled Yannai’s virtues in email exchanges with the victims. In these fake emails, which were intended to allay the victims’ reservations about working for the defendant, “Joanna” and “Sylvia,” among other things, reassured the victims that Yannai had no intention of having sex with them.
As the evidence at trial showed, however, once the victims, five of whom testified at trial, arrived at Yannai’s Pound Ridge home, he subjected them to near-constant sexual abuse, which included groping the victims’ breasts and buttocks, digitally penetrating them, and attempting to force them to perform oral sex on him. Yannai sought to ensure the victims’ compliance with his increasingly more sexually abusive demands through fear, isolation, psychological coercion, and other means. Some of the victims were able to escape shortly after they arrived; others could not escape for months. Yannai was arrested after one of the victims escaped and went to a local police precinct. In addition to the five victims who testified at trial, the government’s investigation revealed that Yannai had victimized six other women, and, during the course of his scheme, had attempted to contact approximately 1,500 women worldwide.
“Yannai used the Internet to lure young women from around the world into his home to sexually abuse them, even using alter egos to manipulate them into coming to the U.S. Once they were in this country, alone and without friends and family, he exploited their fears to keep them trapped in his home. Yannai’s other personas were no help to him today, as he stands revealed for what he is, a predator who used and abused defenseless young women. Today the defendant has been held to account for his victimization of numerous women throughout the world,” stated United States Attorney Lynch. “This office will continue to aggressively investigate and prosecute these crimes to the full extent of the law.”
“Today’s sentencing begins the healing process for these victims that were so unjustly targeted for sex crimes and forced labor through fraud and false promises,” said HSI Special Agent-in-Charge Hayes. “The sentencing of this man is a stern warning to individuals who target innocent women for sexual abuse: You will be found and brought to justice.”
Westchester County District Attorney DiFiore stated, “This defendant used the Internet to engage in a long running coercive campaign to lure numerous young European and South American women for a purported job as a personal assistant. In reality, he was like the proverbial fox entering the chicken coop where he controlled, psychologically manipulated and sexually abused these women, leaving them trapped and victimized.”
The government’s case is being prosecuted by Assistant United States Attorneys Daniel Spector and Hilary Jager, and Special Assistant United States Attorney Audrey Stone, Second Deputy District Attorney and Chief of the Special Prosecutions Division, Westchester County District Attorney’s Office.
The Defendant
JOSEPH YANNAI
Age: 66Portland Man Sentenced to 78 Months in Federal Prison After Admitting to Investment Fraud Scheme Involving over $6 MillionRead the Press Release
sub titlePORTLAND, Ore. - Honorable Ancer Haggerty, U.S. District Judge for the District of Oregon, sentenced Yusaf Jawed, age 44, of Portland, to 78 months in prison, three years of supervised release, and ordered him to make restitution to the victims of his fraudulent investment program in the amount of $6.47 million. Jawed had previously entered a guilty plea to five counts of mail fraud and 12 counts of wire fraud in connection with an investment fraud scheme he orchestrated in Oregon, Washington, California and in other states.
The 17 count Information filed by the U. S. Attorney’s office, to which Jawed pled guilty, alleges that from February 2008 through September 2009, Jawed raised approximately $6.47 million from over ten investors in a hedge fund he controlled called Alpha Qualified Fund. Very little of the money was actually invested and most of the money was diverted to other purposes including the repayment of money owed to prior investors.
“In these uncertain economic times, it is vital that investors can seek advice from trusted advisors,” said U.S. Attorney Amanda Marshall. “When that trust is violated, the government will take strong measures to punish the financial predators and restore confidence in the financial system.”
During the sentencing hearing today, the government stated that Jawed had fulfilled a part of the plea agreement which required him to cooperate with the Securities and Exchange Commission, which had filed a lawsuit against him and with investors who had sued him. The government pointed out that Jawed’s cooperation helped to facilitate a financial recovery against other parties who had assisted him in perpetuating the scheme to defraud.“This defendant lied to his clients – over and over again. He promised high returns and strong investments. In the end, the clients lost millions,” said Gregory Fowler, Special Agent in Charge for the FBI in Oregon. “We have a responsibility to make sure he faces justice while working to help the victims recover what funds they can.”
The case was investigated by the FBI, with the assistance of the Securities and Exchange Commission. Senior Litigation Counsel and Assistant U. S. Attorney Allan M. Garten, prosecuted the case for the government.
Pittsburg, Kan., Man Gets 13+ Years for Distributing MethamphetamineRead the Press Release
WICHITA, KAN. - A man from Pittsburg, Kan., has been sentenced to 157 months in federal prison for distributing methamphetamine, U.S. Attorney Barry Grissom said today.
Mac William Watkins, 36, Pittsburg, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine. In his plea, Watkins admitted that in May 2012 he conspired with co-defendants Tammy Baetke and Derek Edwards to distribute methamphetamine in Pittsburg.
On May 12, 2012, at 803 North Rouse in Pittsburg Watkins provided 35 grams of methamphetamine to Edwards. Edwards took the drugs on consignment and agreed to pay Watkins back from the proceeds of the sales. On May 14, he paid Watkins $450 on a prior $1,200 drug debt and Edwards was found to be in possession of 5 grams of methamphetamine. From April 2012 to May 15, 2012, Watkins provided four ounces of methamphetamine for Edwards to distribute.
On May 18, 2012, Watkins and co-defendant Tammy Baetke were stopped when returning from a trip to Oklahoma City where they had bought methamphetamine. They had more than 149 grams of methamphetamine in their possession.
Edwards was sentenced to 105 months in federal prison. Baetke was sentenced to 60 months in federal prison.
Grissom commended the Pittsburg Police Department, the Kansas Bureau of Investigation Southeast Kansas Drug Enforcement Task Force, the Crawford County Sheriff's Department, Assistant Kansas Attorney General Steven Wilhoft and Assistant U.S. Attorney Jason Hart for their work on the case.Owner of Waste Collection Business Pleads Guilty to Transporting Stolen Waste Vegetable OilRead the Press Release
Baltimore, Maryland – Ahmad Qaabid Abdul Rahim, age 37, of College Park, Maryland pleaded guilty today to transportation of stolen property in connecting with a scheme to steal waste vegetable oil.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief James W. Johnson of the Baltimore County Police Department.
According to the plea agreement, waste collection businesses contract with local restaurants to collect waste vegetable oil (WVO), which is used to make bio-diesel fuel or processed as an additive for animal feed. Waste collection businesses places recycling containers behind the restaurants with which they have contracts. When the containers are full, the businesses collect the WVO using a vacuum truck.Rahim admits that from May through October 2010, he and a friend stole WVO from restaurants in Maryland and Virginia and sold it to out-of-state oil companies. Rahim used a flatbed tow truck that he owned, along with a tank and mechanical pump to collect the WVO, which he stored at a warehouse in Baltimore County. At the end of October, Rahim developed a legitimate WVO collection company, which he called “Waste Not, Incorporated.” Rahim purchased a vacuum truck, hired salesmen to assist him, and eventually obtained 650 contracts to collect WVO from restaurants and other eateries. From June through October, 2011, Rahim personally drove the vacuum truck to each location and collected the WVO.
According to his plea agreement, in October 2011, Rahim and a driver that he hired began to use the vacuum truck to steal WVO from restaurants for which Waste Not did not have a collection contract, in addition to collecting the WVO from its legitimate customers. To disguise the thefts, Rahim altered Waste Not’s master contract list and the driver’s manifest to include the restaurant locations from which he was stealing WVO. Rahim took both his legitimate WVO and the stolen WVO to a collection facility located at 1701 Leland Avenue in Middle River, run by Rahim’s friend. Rahim’s friend then sold the WVO to fuel companies in Pennsylvania and elsewhere.
From January 18, 2012 through September 20, 2012, Waste Not received approximately $98,887, for the sale of 94,178 gallons of stolen WVO.
Rahim faces a maximum sentence of 10 years in for transportation of stolen goods. U.S. District Judge J. Frederick Motz has scheduled sentencing for December 3, 2013 at 2:00 p.m.
United States Attorney Rod J. Rosenstein praised the Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Gregory R. Bockin, who is prosecuting the case.Orlando Woman Sentenced to Seven Years in Prison for Operating Multi-Million Dollar Fraud SchemeRead the Press Release
Orlando, FL - Senior U.S. District Judge Gregory Presnell today sentenced Tina Mangiardi (50, Orlando) to seven years in federal prison for money laundering. The court also ordered Mangiardi to pay restitution to the victims. A restitution hearing will be scheduled for a later date. As part of her sentence, the court also entered a money judgment in the amount of $100,000, the proceeds of the prohibited monetary transaction. Mangiardi pleaded guilty on May 7, 2013.
According to court documents, between 2009 and 2012, Mangiardi, under the corporate name of TLM Design and Construction, Inc. (TLM), engaged in a scheme wherein she fraudulently obtained more than $2.5 million from investors. During the scheme, Mangiardi convinced victims to invest large sums of money in a construction “bid bond” investment. In return, and as inducements to invest, Mangiardi promised the return of the investors’ initial investment, as well as bonus money and additional monetary payments at rates as high as 100%. However, Mangiardi was not awarded bid bond contracts with the investment funds because the construction projects that she allegedly bid on, never existed. Instead, Mangiardi diverted the money for her own use.
This case was investigated by the United States Secret Service with the assistance of the Orlando Police Department Economic Crimes Unit. It was prosecuted by Assistant United States Attorney David Haas.
Omaha Man Sentenced to Five Years for Receiving Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Brian P. Stieren, 37, was sentenced in federal court in Omaha for receiving child pornography. The Honorable Joseph F. Bataillon imposed a sentence of 5 years of imprisonment. There is no parole in the federal system. After Stieren’s release from prison he will begin a five year term of supervised release. As a result of his child pornography conviction Stieren will be required to register as a sex offender.
The FBI Omaha Cyber Crimes Task Force executed a search warrant at Stieren’s Omaha residence on March 7, 2012. The warrant sought evidence of the receipt and distribution of child pornography. A forensic review of Stieren’s computer equipment revealed 320 videos of child pornography. The videos were almost all of prepubescent children engaged in sexual acts. Some of the children were as young as 2 years. Some of the videos involved the torture and bondage of young children.
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 Attorney’s= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.This matter was investigated by the Omaha FBI=s Cyber Crime Task Force (CCTF), of which the Nebraska State Patrol, is a partner. The Omaha CCTF is a multi-jurisdictional task force consisting of eleven federal, state and local law enforcement agencies from Nebraska and Iowa. The mission of the Omaha CCTF is to investigate and apprehend high technology criminals and to protect our communities by preventing high technology crime and national security threats involving computers and computer networks. The Omaha CCTF was established on the premise that the capabilities of law enforcement agencies to investigate computer and high technology related crimes are enhanced in a task force setting involving the sharing of resources and expertise.
Oklahoma City Man Sentenced to 60 Years in Prison for Advertising Child PornRead the Press Release
Oklahoma City, Oklahoma – MARK EDWARD HAMME, 45, of Oklahoma City, was sentenced today to serve 720 months in federal prison for advertising child pornography by United States District Court Judge Stephen P. Friot, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
"Hamme is a child predator through and through." said U.S. Attorney Coats. "Hamme facilitated the abuse and exploitation of children in several ways, including by operating a prolific network of child pornography. The prison sentence imposed by the Court will ensure that Hamme will never harm another child."
According to court records, for several years Hamme advertised access to a child pornography trading network that he moderated. In order to gain access to Hamme’s network, prospective members had to email him child pornography in the amount of 25 pictures or a video in excess of one minute. Hamme was interested in child pornography depicting prepubescent boys. At sentencing, the court considered evidence that Hamme was a serial predator, whose victims included infants, toddlers, and preteens of both sexes.
Hamme was indicted on February 19, 2013, and pled guilty on April 29, 2013. Hamme faced a heightened maximum sentence of 60 years’ imprisonment because at the time of his federal offense he was already a registered sex offender due to Cherokee County convictions for molesting children.
This case was part of Project Safe Childhood, the flagship program in the Department of Justice’s National Strategy for Child Exploitation Prevention and Interdiction, and was the result of an investigation conducted by the Federal Bureau of Investigation and the United States Marshals Service. The case was prosecuted by United States Attorney Sanford C. Coats and Assistant U.S. Attorney Brandon Hale.
Ohio Man Pleads Guilty to Fraud ChargeRead the Press Release
PITTSBURGH - A resident of East Liverpool, Ohio, pleaded guilty in federal court to a charge of wire fraud, United States Attorney David J. Hickton announced today.
Daniel P. Lucas, 50, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that Lucas defrauded three investors by representing that he was a successful currency trader and obtaining $78,000 from them for this purpose, and thereafter retaining and spending more than $49,000 for his own purposes, while earning no profits for investors and incurring more than $28,000 in currency trading losses.
Judge Conti scheduled sentencing for Jan. 10, 2014, at 3:30 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Lucas on bond.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
Nuevo Laredo Man Gets 10 Years for Trafficking ICERead the Press Release
LAREDO, Texas – Arthur Carapia, 23, a U.S. citizen from Dallas residing in Nuevo Laredo, has been ordered to federal prison following his conviction for possession with intent to distribute 3.39 kilograms of a mixture containing methamphetamine, announced United States Attorney Kenneth Magidson. Carapia pleaded guilty May 13, 2103.
Today, U.S. District Judge Diana Saldana ordered him to prison for 120 months to be followed by a five-year-term of supervised release.
On March 8, 2013, Carapia was arrested at the El Espreso bus station in Laredo. Border Patrol agents had noticed Carapia wearing excessively large clothing while standing in line to board an autobus and subsequently discovered two packages of crystal methamphetamine attached to his legs.
Carapia was arrested and admitted his intentions to traffic these narcotics throughout the United States. He stated the drugs arrived from Nuevo Laredo and planned to transport them to Atlanta, Ga.
The methamphetamine, also known as “Ice” because of its high purity levels, weighed 3.39 kilograms and has an estimated street value of $288,000.
Carapia will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the Drug Enforcement Administration, Border Patrol and Laredo Police Department. Assistant U.S. Attorney (AUSA) Sanjeev Bhasker and former AUSA Roel Canales prosecuted the case.
North Carolina Man Sentenced to 4 1/2 Years for Role in Global Hedge Fund Fraud SchemeRead the Press Release
PHILADELPHIA – John C. Tausche, 62, of Blowing Rock, NC, was sentenced today to 54 months in prison for his role in a multi-million dollar investment fraud scheme. U.S. District Court Judge John R. Padova also ordered Tausche to pay $114,995,446 in restitution to victim Barclays Bank. Tausche was a hedge fund business manager and an associate of Helmut Kiener, 53, of Aschaffenburg, Germany, who was charged separately. The charges alleged that the two engaged in a scheme to defraud institutional investors and caused collective losses of more than $311 million. Tausche pleaded guilty November 6, 2012, to one count of bank fraud and one count of money laundering. Kiener, who is currently incarcerated in Germany, is charged by indictment with four counts of wire fraud, two counts of bank fraud, and three counts of money laundering.
Kiener controlled several hedge funds - including K1 Global Limited and K1 Invest - which he marketed to international investors. Tausche controlled several offshore hedge funds collectively called the Oceanus Funds. According to the charges, between March 2005 and December 2008, Kiener allegedly devised a scheme to defraud Bear Stearns entities by representing to Bear Stearns that, under Kiener=s management, Bear Stearns investment funds would be diversified and independently managed. However, the indictment alleges that Kiener actually funneled Bear Stearns money from K1 through the Oceanus Funds and back to K1, so as to give the false impression that the funds were growing in size and were viable investments. Kiener and Tausche, it is alleged, knowingly and intentionally fostered the false appearance that the K1 Funds were increasing in value, in order to induce Bear Stearns to continue to invest in the K1 Funds. Both defendants allegedly provided false and misleading information to Bear Stearns in response to inquiries regarding the K1 and Oceanus Funds, repeatedly and falsely representing that the funds were diversified and independently managed. The indictment alleges that, as a result of the scheme, Kiener earned sales agent fees all while Bear Stearns invested and lost approximately $82 million.
Tausche pleaded guilty to a similar scheme involving Barclays Bank, the K1 Funds and the Oceanus Funds, which caused losses to Barclays Bank totaling approximately $137 million.
In addition, according to the indictment against Kiener, in 2007, Barclays Bank, Bear Stearns, and BNP Paribas (ABNPP@) also invested more than $100 million with Kiener in two offshore funds named Consistent Return Ltd. and Mezzanine Financing Ltd. According to the indictment, Kiener represented that both Consistent Return Ltd. and Mezzanine Financing Ltd. were legitimate investment funds when he actually directed a third party to create these offshore funds and then used the funds for his own purposes including, but not limited to, the purchase of: oceanfront real estate in Delray Beach, Florida valued at over $21 million; a Bombardier executive jet; a Bell helicopter; luxury cars such as a Bentley, a Mercedes and a Maybach; two luxury watercraft; and over $8 million in upgrades to his real estate.
The case was investigated by the Foreign Corruption Investigation Group, Homeland Security Investigations - Miami Field Office, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, and the German police force Kriminalpolizeiinspektion Unterfranken, with assistance from Barclays Bank, BNP Paribas, and Bear Stearns/J.P. Morgan Chase Bank. The Office of International Affairs in the Justice Department’s Criminal Division also provided valuable assistance in this matter. It is being prosecuted by Assistant United States Attorneys Jennifer Arbittier Williams and Suzanne Ercole.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Montgomery Man Sentenced for Club ShootingRead the Press Release
Montgomery, Alabama - On September 23, 2013, Timothy Cortez Robinson, 26, of Montgomery was sentenced to more than 3 years for the possession of a firearm during a shooting at the Rose Supper Club on December 3, 2012.
United States District Court Judge Mark E. Fuller sentenced Robinson to 37 months in the Bureau of Prisons, 3 years of Supervised Release, and a $100 court assessment fee.
Robinson pled guilty on June 18, 2013, and agreed that in the early morning hours of December 3, 2012, he got into a gunfight with another man at the Rose Supper Club on Highland Avenue, after a verbal altercation. Robinson further agreed that at the time he did pull the Glock .45 he was carrying on his hip and exchanged gunfire inside the club. Robinson had previously been convicted of a felony and was not permitted to possess a firearm.
The case was investigated by Bureau of Alcohol, Tobacco, and Firearms, and the Montgomery Police Department. The case was prosecuted by Assistant United States Attorneys Susan R. Redmond and Brandon Essig.
PRESS CONTACT: Clark Morris
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Telephone: (334) 551-1755
Fax: (334) 223-7617Monongahela Man Will Serve 6 Months at Renewal Center for Straw Purchasing ShotgunRead the Press Release
PITTSBURGH - A resident of Monongahela, Pa., was sentenced to serve time in federal custody for violating federal firearms laws, United States Attorney David J. Hickton announced today.
Ronald DeGrange, 47, was sentenced by United States District Judge Donetta W. Ambrose to serve six months in the custody of the federal Bureau of Prisons at the Renewal Center in Pittsburgh, followed by two years of supervised release which includes a six-month term of home detention. DeGrange was convicted of providing false information to a federal firearms licensee by indicating that he was the actual buyer of a Mossberg 12 gauge shotgun with a pistol grip when he was actually acting on behalf of someone else and by indicating that he was not an unlawful user of, or addicted to, a controlled substance when he, in fact, was. DeGrange bought the firearm for an acquaintance who was a convicted felon and who was addicted to a controlled substance and could not lawfully purchase or possess firearms. DeGrange straw purchased firearms for that person three times and also sold the person a Colt AR-15 semi-automatic rifle on another occasion.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pennsylvania State Police investigated this case. This case was prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Mobridge Man Charged with Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mobridge, South Dakota, man has been indicted by a federal grand jury.
Francis DuBray, age 24, was indicted on August 21, 2013, for Distribution of a Controlled Substance. DuBray appeared before U.S. Magistrate Judge Mark A. Moreno on September 19, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is not more than 5 years of imprisonment and/or a $250,000 fine, a mandatory period of at least 2 years of supervised release, an additional year of supervised release upon revocation, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and DuBray is presumed innocent until and unless proven guilty.
The Indictment alleges that on May 13, 2013, and June 11, 2013, at Mobridge, DuBray knowingly and intentionally distributed marijuana, a Schedule I controlled substance.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
DuBray was remanded to the custody of the U.S. Marshals Service. A trial date has been set for November 19, 2013.
Minneapolis Felon Sentenced for Possessing A .44-caliber RevolverRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 28-year-old felon from Minneapolis was sentenced for possessing a .44-caliber revolver. United States District Judge Ann D. Montgomery sentenced Eugene Denzel Johnson to 80 months in prison on one count of being a felon in possession of a firearm. Johnson was indicted on November 20, 2012, and pleaded guilty on May 13, 2013.
In his plea agreement, Johnson admitted that on September 5, 2012, he was riding in a vehicle that police attempted to stop following a traffic violation. Johnson jumped from the passenger side of the vehicle and ran, a gun tucked in his waistband. Spotting the gun as Johnson exited the vehicle, police gave chase, ultimately apprehending him a short time later. Officers recovered the gun after using a trained canine to trace the path that Johnson had taken.
Because he is a felon, Johnson is prohibited under federal law from possessing firearms at any time. He was previously convicted in Hennepin County on charges of first-degree aggravated robbery (2005 and 2010), in Ramsey County on charges of theft of a motor vehicle (2003), and in Dakota County on charges of criminal damage to property (2003).This case was the result of an investigation by the Minneapolis Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Amber M. Brennan.
The case was charged under Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. The Hennepin County Attorney’s Office then teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than two dozen serious habitual criminals through Project Exile Minneapolis.Mexican Citizen Sentenced for Reentry of Deported AlienRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Sept. 23, 2013, Manuel Perez-Ambrosio, 35, of Posa Rica, Veracruz, Mexico, pleaded guilty and was sentenced by U.S. Senior Judge Patrick A. Conmy on a charge of reentry of deported alien.
Judge Conmy sentenced Perez-Ambrosio to serve two years and six months in federal prison.
On July 10, 2013, Perez-Ambrosio was encountered by the Minot Police Department during a traffic stop in Minot, N.D. Perez-Ambrosio did not possess any identification documents and U.S. Border Patrol officials were contacted. They discovered that Perez-Ambrosio was a citizen of Mexico and in the United States illegally. He had previously been deported from the United States in February 2013. Prior to deportation, he had been convicted of assault with a deadly weapon, a felony, in California state court in 2012.
The case was investigated by the Minot Police Department and the United States Border Patrol.
Assistant U.S. Attorney David Hagler prosecuted the case.
Meriden Police Officer Sentenced to 14 Months in Prison for Using Unreasonable Force, Obstructing JusticeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Rhonda M. Glover, Acting Special Agent in Charge of the Federal Bureau of Investigation, announced that former Meriden Police Officer EVAN COSSETTE, 26, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 14 months of imprisonment, followed by one year of supervised release.
On June 3, 2013, a jury found COSSETTE guilty of one count of using unreasonable force and one count of obstructing a federal investigation by preparing a false report.
According to evidence at trial, on May 1, 2010, COSSETTE and another Meriden Police officer responded to a reported hit-and-run incident. After identifying “P.T.” as the driver likely involved in the hit-and-run incident, the officers placed him under arrest. COSSETTE transported P.T. to the Meriden Police Department and escorted a compliant and handcuffed P.T. from the squad car to the holding cell. Once inside the holding cell, COSSETTE firmly shoved a retreating and still handcuffed P.T., causing him to fall backward and strike his head on a cement cell bench. P.T. suffered a 12-centimeter gash to the back of his head and lost consciousness. P.T. was then transported to the hospital for treatment.
COSSETTE obstructed justice by making false and misleading statements, as well as material omissions, in his report relating to the arrest and processing of P.T. in order to cover up and create a false justification for his assault upon P.T.
“Law enforcement officers have an incredibly difficult job, one in which they must exercise good judgment and restraint at all times,” stated Acting U.S. Attorney Daly. “When they fail to do so, they should never try to cover their tracks, file false reports and lie about their conduct. A prison term is appropriate for any police officer who inflicts injury on a restrained and compliant victim and then attempts to obstruct the ensuing investigation. It is our hope that this prosecution will help to instruct all law enforcement officers how not to conduct themselves, and will fortify the integrity of a profession that is entrusted with protecting our liberties as well as our safety.”
“Law enforcement officers, throughout the state and the country, need to remember that the dishonorable and criminal actions of a single police officer will never define them as people, as a department and, most importantly, as police officers,” stated Acting FBI Special Agent in Charge Glover. “Because the defendant broke his solemn oath to protect and to serve and, in doing so, endangered the public’s confidence in law enforcement, today’s sentence is fair and just.”
Judge Arterton ordered COSSETTE to pay restitution to the victim in an amount to be determined within 90 days.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut State Police. The case was being prosecuted by Assistant U.S. Attorneys Paul H. McConnell and David E. Novick.
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(203) 821-3722 [email protected]Maryland Man Sentenced to 46-Month Prison Term for Possession of Child PornographyRead the Press Release
WASHINGTON – Cornelius Magee, 37, of Silver Spring, Md., was sentenced today to 46 months of incarceration for possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Magee pled guilty to the charge in February 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Amy Berman Jackson. Upon completion of his prison term, Magee will be placed on 10 years of supervised release.
According to the government's evidence, on Oct. 24, 2012, Magee contacted a man he believed to be the father of a 12-year-old girl on a social network site. That man turned out to be an undercover officer with the FBI's Child Exploitation Task Force.
Over the next two days, Magee engaged in online e-mail and instant message conversations with the undercover officer. During this period of time, Magee sent the undercover officer two videos of child pornography which depicted adult men engaged in sexual acts with children. Following the defendant’s arrest on Oct. 26, 2012, members of the FBI’s Child Exploitation Task Force conducted a search of Magee’s residence and found approximately 16 additional videos of child pornography on the defendant’s computer.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI’s Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
13-331Man Sentenced for Eastern Shore Drug TraffickingRead the Press Release
NORFOLK, Va. – Jarrid Delmont Cropper, 41, of Northampton County, Va., was sentenced on September 23, 2013 to 300 months in prison, followed by 5 years of supervised release, for conspiracy to distribute and possess with intent to distribute 5 kilograms or more of cocaine and 280 grams or more of a mixture and substance containing cocaine base, commonly known as “crack” cocaine.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Justin K. May, Resident Agent in Charge for the Drug Enforcement Administration-Norfolk Resident Office, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar.
Cropper waived indictment and pleaded guilty to a Criminal Information on February 19, 2013. Cropper has sold cocaine on the Eastern Shores of Virginia since 1997. Cropper was known to travel to Norfolk, Virginia from the Eastern Shore of Virginia to purchase large quantities of cocaine and then transport it back to the Eastern Shore for distribution. Cropper broke down the cocaine to smaller quantities and delivered multiple ounce quantities of cocaine to mid-level dealers and to users for an increased profit. Cropper also used and directed couriers to transport the cocaine on his behalf in an effort to avoid law enforcement detection.
This case is the latest in an investigation that has been ongoing for years on the Eastern Shore. In early 2009, the Drug Enforcement Administration-Norfolk Resident Office, and the Eastern Shore Drug Task Force, consisting of the Accomack County Sheriff’s Office, the Northampton County Sheriff’s Office and the Virginia State Police, initiated an investigation dubbed “Operation Baker’s Dozen,” targeting several known long-term and large scale narcotics traffickers on the Eastern Shore of Virginia. This was the first federal drug investigation on the Eastern Shore of Virginia in fifteen years. Initially a local community impact investigation, it grew into a multi-jurisdictional Organized Crime Drug Enforcement Task Force (OCDETF) investigation. This investigation combines the resources of local, state and federal authorities and has targeted the most troublesome criminals on the Eastern Shore who had either escaped prosecution or had received repeated lenient sentences that did nothing to deter them.
This case was investigated by the Drug Enforcement Administration – Norfolk Resident Office and the Virginia State Police Eastern Shore Drug Task Force. Assistant United States Attorney Laura M. Everhart 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.Lorain Man Sentenced to More Than Six Years in Prison for FirearmsRead the Press Release
A Lorain man was sentenced to more than six years in prison after previously pleading guilty to being a felon in possession of firearms, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Jose Romero, age 32, was found to have 40 pistols, rifles and revolvers earlier this year despite having a 2005 conviction in Lorain County for domestic violence, according to court documents.
“This office places a high priority on keeping firearms out of the hands of those who are forbidden by law from obtaining them,” Dettelbach said. “Whether it is a person using a gun to commit a violent crime, a felon illegally obtaining a firearm or a straw purchaser trying to circumvent the law, we will aggressively pursue those who would violate our nation’s firearms laws.”
U.S. District Judge James Gwin sentenced Romero to 80 months in prison on Sept. 20.
Romero told a confidential informant that he was interested in purchasing large numbers of firearms in an effort to influence their availability in Lorain, according to court documents.
The information indicated that Romero stores many of his firearms inside a safe inside his grandmother’s residence on Charleston Avenue in Lorain. Law enforcement officers subsequently searched Romero’s home on East 31st Street and the Charleston Avenue home on Feb. 26, 2013, according to court documents.
Investigators found firearms, marijuana and cocaine at the East 31st Street residence and a safe with 28 firearms at the Charleston Avenue residence, as well as marijuana, according to the court documents.
This case is being handled by Assistant United States Attorney Robert F. Corts following an investigation by the Lorain Police Department, the Drug Enforcement Administration, Lorain County Drug Task Force and Bureau of Alcohol, Tobacco, Firearms and Explosives.
Long-time Colombo Crime Family Associate Sentenced to 14 Years’ ImprisonmentRead the Press Release
Earlier today, Francis “BF” Guerra, a long-time associate of the Colombo organized crime family of La Cosa Nostra (the “Colombo crime family”), was sentenced to 14 years’ imprisonment for his role in a scheme to fraudulently obtain and distribute prescription drugs. The sentence was imposed by the Honorable Sandra L. Townes, United States District Judge for the Eastern District of New York, at the United States Courthouse in Brooklyn, New York.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George C. Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office.
Today’s proceeding marks the culmination of a lengthy investigation and prosecution by the U.S. Attorney’s Office and the FBI. Following a jury trial conducted in June and July of 2011, Guerra was convicted of one count of conspiracy to distribute oxycodone and Oxycontin, and one count of actually distributing those drugs, in 2010 and 2011. In addition, he was convicted of four counts of wire fraud based on his fraudulently obtaining reimbursement for those drugs from his insurance provider.
During the sentencing proceeding, United States District Judge Sandra L. Townes found that, in addition to the crimes of conviction, the government proved by a preponderance of the evidence that the defendant had committed numerous additional crimes, including the 1992 murder of Michael Devine and the 1993 murder of Joseph Scopo. Devine was murdered because he had a relationship with the wife of Alphonse Persico, then the acting boss of the Colombo crime family and son of the official boss, Carmine Persico, Jr. Scopo was murdered because he was the underboss of a faction of the Colombo crime family that sought to take control from the Persicos. By murdering Scopo, Guerra and his co-conspirators won the “Colombo family war” -- one of the most violent feuds in mafia history -- for the Persico faction.
“Years ago, the defendant Guerra chose a life of crime, with murder as his criminal stock in trade. Organized crime has always been about money rather than honor, and recent years saw Guerra move into the equally deadly business of illegal trafficking in prescription drugs,” stated United States Attorney Lynch. “This sentence is a harsh warning to anyone considering introducing these addictive, deadly drugs into our community. This sentence also sends an important message to members and associates of organized crime. We will never stop investigating and prosecuting the murders and other violent crimes they commit, no matter how long ago they occurred, and we will hold those who commit such crimes accountable, regardless of how long they have avoided justice.” Ms. Lynch extended her grateful appreciation to the FBI and the New York City Police Department for their assistance.
FBI Assistant Director-in-Charge Venizelos stated, “The illegal traffic in prescription drugs poses as grave a danger to society as trafficking in illicit drugs. Today’s sentence reflects the seriousness of the offense. The sentence also closes a chapter in the bloody Colombo war from 20 years ago. Responsibility for two murders has been laid at the feet of this defendant. There is no statute of limitations on the resolve of the FBI to see justice done.”
The government’s case was prosecuted by Assistant United States Attorneys Nicole M. Argentieri and Allon Lifshitz.
The Defendant:
FRANCIS GUERRA
Age: 47Lee County Commissioner Agrees to Plead Guilty to Wire FraudRead the Press Release
Fort Myers, Florida - Acting United States Attorney A. Lee Bentley, III announces the filing of an information and signed plea agreement in United States District Court against Lee County Commissioner Tammara Ann Hall, a/k/a Tammy Hall (53, Cape Coral). The information charges Hall with one count of wire fraud. She faces a maximum penalty of 20 years in federal prison. An initial appearance and acceptance of plea hearing is set for October 3, 2013 at 1:30 p.m. before U.S. Magistrate Judge Douglas Frazier.
According to the plea agreement, Hall was a Lee County Commissioner running for re-election in the November 2010 general election. From November 2009 to November 2010, Hall diverted and embezzled approximately $33,756 of donor contributions to the Tammy Hall campaign fund, and used the money for personal expenditures unrelated to the campaign. Hall completed Florida Department of State campaign fund quarterly reports and failed to disclose that she had diverted campaign contributions to pay for personal expenses. She falsely represented the nature of the expenditures, which she made for personal purposes, or omitted certain campaign contribution checks from the quarterly reports. Hall stole from her campaign fund by transferring funds electronically from the campaign bank account to her personal bank account, by writing checks from the campaign bank account and depositing the checks to her personal bank account, and by depositing certain donor campaign contribution checks directly into her personal bank account. Hall used interstate wires to accomplish the electronic transfer of funds from her campaign account to her personal account at Wachovia Bank.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
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Leader of Treasure Valley Meth Conspiracy Pleads GuiltyRead the Press Release
BOISE – Jason Lee Holmberg, 39, of Middleton, Idaho, pleaded guilty today in federal court to conspiracy to distribute methamphetamine and interstate transportation in aid of racketeering, U.S. Attorney Wendy J. Olson announced. Holmberg also agreed to forfeit assets associated with the illegal activities.
According to court documents, Holmberg admitted to being a leader of the conspiracy, which existed from May 2012 through April 18, 2013.
The charge of conspiracy to distribute more than 50 grams of actual methamphetamine is punishable by not less than 10 years in prison, a maximum fine of $10 million, and at least five years of supervised release. The charge of interstate transportation in aid of racketeering is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Holmberg is set for sentencing on December 2, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
On May 16, 2013, Holmberg and 19 others were charged in an 89-count federal indictment with conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, interstate transportation in aid of racketeering, and use of a communication device in drug trafficking.
The indictment is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration in conjunction with the Nampa Police Department and Boise Police Department. Other federal agencies participating in the OCDETF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Bureau of Land Management, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Leader of Bank Fraud Conspiracy and Aggravated Identity Theft Scheme Sentenced to over 21 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Ida Mae Weathers, a/k/a Ida Mae Snipes, age 49, of Baltimore, today to 259 months in prison, followed by five years of supervised release, for conspiracy, bank fraud and aggravated identity theft in connection with a scheme to steal wallets from women’s purses, remove the cash, credit cards and driver’s licenses and use the credit cards to make purchases at nearby stores. Judge Garbis ordered that Weathers pay restitution of $151,180.50.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service – Baltimore Field Office; Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police; Chief James W. Johnson of the Baltimore County Police Department; and Commissioner Anthony W. Batts of the Baltimore Police Department.
Beginning in May 2007, Weathers led a scheme to defraud financial institutions by stealing credit cards from the wallets and purses of unsuspecting individuals, then using the stolen credit cards to make purchases. Weathers, an experienced pickpocket, would linger in women’s restrooms and steal the wallets from purses hung on the hooks in the stalls. Often, one of the other co-conspirators would create a distraction in an adjacent stall, such as asking for toilet paper, so that the victim would be looking away from her purse. Other conspirators sometimes served as a “lookout” for Weathers. Often Weathers was able to remove cash and credit cards and return the wallet to the victim’s purse without the victim seeing or suspecting the theft.Weathers used some of the stolen credit cards herself and provided stolen credit cards to other co-conspirators, including Crystal Barner, Maureen Brown Little, Nicole Roles, Sharon Curtis and Nefeteria Jamison. The conspirators took the cards to nearby retail stores and used each card until it began to be declined. The conspirators purchased items for their personal use, as well as gift cards or high end merchandise that Weathers would direct them to buy and would then resell.
During the course of the conspiracy, Weathers and her co-conspirators obtained goods, services and extensions of credit with attempted losses of between $200,000 and $400,000 and actual losses of $151,180.50. More than 50 financial institutions and individuals were victimized by the scheme.
Nicole Roles, age 43, Sharon Curtis, age 32 , Crystal Barner, age 28, Maureen Brown Little, age 39, and Nefeteria Jamison, age 32, all of Baltimore, pleaded guilty to their roles in the scheme and are scheduled to be sentenced on September 27, 2013, October 2, 2013, October 8, 2013, October 9, 2013, and November 25, 2013, respectively.Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 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 more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service, Maryland Transportation Authority Police, Baltimore County Police Department, Baltimore City Police Department, as well as the Maryland State Police, Atlantic City, New Jersey Police Department and the University of Maryland Police for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Tamera L. Fine, who is prosecuting the case.
Last Member of Violent Take-Over Style Bank Robbery Crew Pleads GuiltyRead the Press Release
The final defendant of a violent bank robbery team pleaded guilty today in U.S. District Court in Seattle, announced U.S. Attorney Jenny A. Durkan. In all, seven defendants have entered guilty pleas to their roles in the string of bank robberies. JEANINE M. DANIELS, 32, of Los Angeles, California, pleaded guilty today. The other defendants are: CHARLES A. WILLIAMS, 40, KEVIN L. BROWN, 38; CURTIS W. SMITH, 22; and DOUGLAS L. SMITH, 22, all of Los Angeles, California; JANALISA ESTRADA, 33, Hollywood, California; and ANTHONY V. MOSLEY, 46, of Tacoma, Washington. All have entered guilty pleas and will be sentenced by U.S. District Judge Richard A. Jones over the next few months.
According to records filed in the case, various members of the seven member ring participated in one or more of a string of takeover-style bank robberies in Washington, Ohio, Michigan and Colorado. During the robberies, subjects entered the banks in groups, covered head to toe in loose clothing and gloves, and demanded money while jumping over teller counters. The four robberies in Washington were: the May 25, 2012 robbery of a Wells Fargo branch on Pacific Avenue South in Tacoma; the September 6, 2012, robbery of a U.S. Bank Branch on Bridgeport Way in Lakewood; the October 22, 2012, robbery of a Wells Fargo Bank branch on Lake City Way in Seattle; and the December 20, 2012, robbery of a Wells Fargo Bank branch on 132nd Avenue NE in Kirkland. In their plea agreements, various members of the gang pleaded guilty to different robberies in Saline, Ypsilanti, Ann Arbor, Temperance, and Jackson, Michigan, and Toledo, Ohio. DANIELS was initially contacted by law enforcement following a bank robbery in Denver, Colorado.
“The FBI is pleased that Ms. Daniels and her partners are ultimately taking responsibility for their actions,” said FBI Special Agent-in-Charge Laura M. Laughlin. “The harm they inflicted extends beyond the financial, to include the fear and trauma experienced by bank employees and customers, and the pain levied on their own families. While these seven subjects have accepted responsibility for robberies in Washington, Michigan, and Ohio, the South Sound Gang Task Force remains committed to investigating additional subjects and associated bank robberies. The task force combats gang violence in all its forms, and is dedicated to bringing criminals to face justice.”
The South Sound Gang Task Force (SSGTF) in Washington arrested five of the subjects on December 22, 2012 on state bank robbery charges. The SSGTF arrested the subjects as they prepared to board a Greyhound bus to Los Angeles, California. Investigators were waiting at the bus station, based upon information that the group frequently traveled to Los Angeles by Greyhound bus within days of a bank robbery.
The Tacoma, Washington-based SSGTF investigated the robberies in Washington state in partnership with the Lakewood Police Department’s Gang Unit and the FBI Seattle Safe Streets Task Force. The SSGTF is composed of members of the FBI Seattle Division, Lakewood and Tacoma Police Departments, the Washington State Patrol, the Washington State Department of Corrections, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). FBI entities nationwide collaborated in the investigation, including the Los Angeles Field Office and the Ann Arbor, Denver, and Toledo Resident Agencies.
The case is being prosecuted by Assistant United States Attorneys Mike Dion and Kate CrishamLas Vegas Man Sentenced for Possessing Machine GunRead the Press Release
BOISE – Phillip Bernardino Chavez, 30, of Las Vegas, Nevada, was sentenced today in United States District Court to 30 months in prison followed by three years of supervised release for illegally possessing a machine gun, U.S. Attorney Wendy J. Olson announced. Chavez appeared before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
According to the plea agreement, in December 2012, Chavez’s co-defendant, Ronald Alexander, offered to sell a rifle to a Nampa Police detective working undercover. After discussing the terms of a transaction, Alexander told the undercover officer that an automatic rifle would cost $3,200. Arrangements were made for the undercover officer to purchase the firearm during a controlled operation. On December 18, 2012, the undercover officer met with Alexander and Chavez. Chavez presented the undercover officer with a Pioneer Arms Corporation 7.62x25 rifle and a bag containing three magazines, in exchange for $3,200. At the conclusion of the transaction, law enforcement agents arrested Alexander and Chavez. Chavez pleaded guilty to the charge on July 3, 2013, admitting that he knew the firearm was a fully automatic machine gun.
Co-defendant Ronald Keith Alexander, 38, of Boise, was sentenced last month to 46 months in prison. Alexander was also prohibited from possessing firearms due to a 2001 felony conviction for robbery in Walla Walla County, Washington.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Nampa Police Department, and Boise Police Department.
The defendants were prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Lantry Man Charged with Sexual Contact with A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lantry, South Dakota, man has been indicted by a federal grand jury for Sexual Contact with a Minor.
Robert Smith, age 52, was indicted on September 17, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 19, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 2 years in custody and/or a $250,000 fine, up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
Smith is alleged to have had sexual contact with a minor near Lantry between May 30, 2012, and July 27, 2012.
The charge is merely an accusation and Smith is presumed innocent until and unless proven guilty.The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Smith was released on bond pending trial. A trial date has not been set.
Lakeville Man Pleads Guilty to Conspiring to Commit Fraud in Connection with Burnsville Condo DevelopmentRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 47-year-old Lakeville man pleaded guilty for his role in a scheme to defraud mortgage lenders in connection with the sale of condominiums at the Chateau Ridge development in Burnsville. John Michael Stevens, the developer of the Chateau Ridge project, pleaded guilty to one count of conspiracy to commit wire fraud. Stevens, who was indicted on November 20, 2012, entered his plea before United States District Judge Susan Richard Nelson.
In his plea agreement and in Court today, Stevens admitted that in 2007, he conspired with others to defraud lenders who were financing his sale of certain units at Chateau Ridge.
In one of the sales, Stevens admitted to misrepresenting the true purpose of a payment that was to be made from mortgage loans proceeds. In that sale, he directed the loan closer to state in closing documents that a payment from loan proceeds was to satisfy a pre-existing mortgage on the property, even though he knew that was not the case. The loan was ultimately approved. The lender in that sale lost an estimated $227,712 when the unit went to foreclosure.Stevens also admitted that he arranged for the buyers of four other units to be repaid their earnest money down-payments and closing costs. In effect, the buyers purchased the units for an actual price lower than what was disclosed to the lenders. The total amount refunded to the buyers of these four units was approximately $240,500.
For his crime, Stevens faces a potential maximum penalty of five years in federal prison. Judge Nelson will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. It is being prosecuted by Assistant U.S. Attorneys Robert M. Lewis and Karen B. Schommer.
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.Lackawanna Men Indicted on Drug ChargesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a five-count indictment charging Andre Jones, Jr., 25, and Carvis McCutcheon, 33, both of Lackawanna, N.Y., with narcotics conspiracy and possession with intent to distribute and distribution of cocaine and crack cocaine. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 40 years, a $5,000,000 fine, or both.
Assistant U.S. Attorney John M. Alsup, who is handling the case, stated that according to the indictment, between August 2012 and September 5, 2013, the defendants conspired together to obtain and sell cocaine and crack cocaine in the City of Lackawanna. The indictment further states that drug sales occurred within 1000 feet of the Baker Homes, a public housing facility owned by the Lackawanna Municipal Housing Authority .
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The indictment is the result of an investigation on the part of the City of Lackawanna Police Department under the direction of Chief James Michel, and the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division.