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23 September 2013
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
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
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
Email: [email protected]
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.Justice Department to Monitor Election in MississippiRead the Press Release
The Justice Department announced today that it will monitor the special municipal election on Sept. 24, 2013, in Hattiesburg, Miss. The monitoring is designed to ensure compliance with the Voting Rights Act, which prohibits discrimination in the election process on the basis of race, color or membership in a minority language group.
Justice Department personnel will monitor polling place activities in Hattiesburg. A Civil Rights Division attorney will coordinate federal activities and maintain contact with local election officials.
Each year, the department deploys federal observers from OPM, as well as departmental staff, to monitor elections across the country. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Visit www.justice.gov/crt/about/vot/ for more information about the Voting Rights Act and other federal voting rights laws.
James Bender Sentenced for Conspiracy to Defraud International Customers of New Hampshire BusinessRead the Press Release
CONCORD, N.H. – James Bender, 49, of Sharon, Massachusetts, was sentenced in United States District Court for the District of New Hampshire to 24 months in prison for conspiracy to commit wire fraud, announced United States Attorney John P. Kacavas.
Bender, a former Senior Vice President of Trade Finance for Sovereign Bank, was convicted in May of conspiring to defraud foreign customers of more than $200,000.00. He conspired with Paul Wilson, the former Manager of International Trade Finance for Goss International Americas Corporation, to defraud several Latin American customers. Goss manufactures commercial printing presses. One component of Wilson’s job was to facilitate international sales by arranging financing for foreign purchasers of Goss’s products and working with the Export-Import Bank of the United States to obtain credit insurance for loans extended to Goss’s foreign customers. Bender arranged for Sovereign Bank to purchase most of the loans Goss extended to its foreign customers.
Bender and Wilson formed two shell companies called Zephyr Capital LLC and Zephyr Financial LLC, through which they defrauded two Brazilian and two Mexican businesses that purchased presses from Goss. Bender and Wilson used the shell companies to send fraudulent invoices to these businesses charging them for loan underwriting services that were either never rendered or that Wilson performed as part of his job at Goss. The invoices totaled over $200,000 in bogus charges. Most of the victim companies wired payments for the fraudulent invoices to Zephyr bank accounts in the United States, which Bender and Wilson divided between themselves over a four year period.
Bender was also fined $7,500.00, ordered to pay restitution in the amount of $195,457.67 and sentenced to serve three years of supervised release.
Wilson pleaded guilty last year to three counts of wire fraud in connection with this scheme and was later sentenced to one year and one day in prison.
This case was investigated by the Office of the Inspector General for the Export-Import Bank of the United States was prosecuted by Assistant United Sates Attorney Mark S. Zuckerman.Isabel Woman Pleads Guilty to Simple Assault of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that Crystal Reeder, a/k/a Crystal Taylor, age 29, of Isabel, South Dakota, appeared before Magistrate Judge Mark A. Moreno on September 19, 2013, and pled guilty to a Superseding Information that charged her with Simple Assault of a Minor.
The maximum penalty upon conviction is 1 year of custody, a $100,000 fine, restitution, and a $25 assessment to the Federal Crime Victims Fund.
Reeder’s conviction is the result of an incident in May 2012 in Isabel, where Reeder had offensive and unlawful contact with a minor under the age of 16.
The investigation was conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.
A presentence investigation was ordered and a sentencing date was set for November 25, 2013. The defendant was released on bond pending sentencing.
Investigators, Prosecutors Combat Financial Fraudsub titleRead the Press Release
SALEM, Ore. – For the 13th consecutive year, a unique financial crimes conference will be held in Oregon. The Financial Crimes & Digital Evidence Conference has become international in scope, attracting participants from Europe and Asia. It brings together in the same place at the same time, from multiple jurisdictions, law enforcement investigators and prosecutors, financial institution fraud investigators, and corporate fraud investigators to learn how, through teamwork, to apply the most recent technology to combat financial fraud. Financial fraud results in billions of dollars of losses annually in the United States and law enforcement officers in Oregon are determined to reduce the harm to consumers and to hold more offenders accountable.
On Tuesday, September 24, through Thursday, September 26, law enforcement investigators, prosecutors, financial institution fraud investigators, corporate fraud investigators and auditors will gather at the Salem Convention Center to learn how to better investigate and prosecute financial fraud. The conference will provide investigators and prosecutors who handle financial crimes, and private-sector personnel who assist them in doing so, tools to assist in the detection, investigation and prosecution of financial fraud. The conference is open to all city, county, state, and federal law enforcement officers and prosecutors; fraud investigators and security officers for financial institutions; internal auditors for public agencies; and private-sector personnel who assist law enforcement in the investigation of financial crimes.
The seminar will address a variety of topics, including: (1) digital forensic evidence; (2) the use of financial and digital evidence in solving violent crime; (3) gender based financial crime; (4) identity theft and tax fraud; (5) culturally transient criminals; (6) working with victims of fraud; (7) organized retail fraud; (8) Medicaid fraud and financial exploitation of elders; and (9) state and federal search and seizure legal updates.
“The value of the Financial Crimes & Digital Evidence Conference is reflected in its international audience,” said U.S. Attorney Amanda Marshall. “It supports a continuous need for training in the increasingly sophisticated area of financial fraud and reflects our desire to hold accountable those who victimize our citizens. The combined training of investigators and prosecutors fosters a team approach and provides immediate tools to better detect, investigate, and prosecute those who commit financial fraud.”
The 2013 Financial Crimes & Digital Evidence Conference is sponsored by the United States Attorney’s Office, the Oregon Department of Justice, the Oregon Department of Public Safety Standards and Training, and the Federal Bureau of Investigation. For further information, please contact Sean Hoar at [email protected] or visit www.financialcrimesconference.com.
Indictment: Wabaunsee County Woman Embezzled from Bio-Security Research InstituteRead the Press Release
TOPEKA, KAN. - A Wabaunsee County woman has been indicted on charges of embezzling from the Bio-Security Research Institute at Kansas State University, U.S. Attorney Barry Grissom said today.
Linda Kay Miller, 51, Alma, Kan., was charged in an indictment unsealed Sept. 20 with three counts of interstate transportation of fraudulently altered securities. The indictment alleges that the crimes took place while Miller worked as an office manager for the institute from August 2007 to January 2013. The institute receives grant money from the federal government to provide infectious disease research programs that address threats to plant, animal and human health.
Miller had access to checks that were sent to the institute by outside agencies and organizations. She used her position to embezzle funds by diverting checks sent to the institute. She altered the checks to make herself either a payee or co-payee and deposited the proceeds into one of her personal bank accounts. The proceeds moved in interstate commerce as part of the fed-wire process to clear and negotiate the checks. The indictment identifies three specific checks Miller is alleged to have diverted: A check for $5,000 from the FSU Research Foundation in Tallahassee, Fla.; a check for $6,108.58 from the Frontline Healthcare Workers Safety Foundation in Atlanta, Ga.; and a check for $955 from J.M. Oconnor Inc., in Lenexa, Kan.
The government is seeking a money judgment of $16,523.58 against Miller.
If convicted, Miller faces a maximum penalty of 10 years and a fine up to $250,000 on each count. Investigating agencies include the FBI, the Kansas State University Police Department and the Wabaunsee County Sheriff’s Office. Assistant U.S. Attorney Richard Hathaway is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Hiawatha Search Warrant Results in Federal Prison SentencesRead the Press Release
Two men associated with a Hiawatha, Iowa residence that contained over 330 pounds of marijuana, four loaded firearms, and over $37,000 in cash, were sentenced to federal prison today.
Kenny Emilio Salguero, 29, and Kenneth Stepter, 20, received the prison terms following guilty pleas on June 5 and June 6, respectively, to conspiracy to distribute marijuana. Salguero was sentenced to over 11 years in federal prison. Stepter received a sentence of over 7 years.
Information disclosed at the plea and sentencing hearings indicated that Salguero and Stepter each admitted agreeing with others to distribute large quantities of marijuana, including “high grade” marijuana. Drug ledgers seized at the residence during the execution of a March 26, 2013 search warrant showed that several loads of marijuana had been received at both the Hiawatha residence and a Cedar Rapids warehouse that was leased by Salguero. According to the ledgers, Salguero profited from some of these loads, earning $13,000 from one shipment alone. Four loaded firearms were seized in the residence, along with over 330 pounds of marijuana and $37,503 in bundled cash. One of the firearms was located in close proximity to Stepter, who was the only person present at the time of the search. The evidence also showed that Stepter encouraged a minor to become involved in the marijuana distribution activities.
Salguero and Stepter were each sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Salguero was sentenced to 135 months’ imprisonment. Stepter received a sentence of 87 months’ imprisonment. Both were ordered to pay special assessments of $100, and will be required to serve 4-year terms of supervised release after their prison terms. There is no parole in the federal system.
Salguero and Stepter are both being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot, and was investigated by the Hiawatha Police Department and the Cedar Rapids Drug Enforcement Administration (DEA) Task Force, which consists of DEA; Linn County Sheriff's Office; Cedar Rapids Police Department; Marion Police Department; Iowa Division of Narcotics Enforcement; Sixth Judicial District Department of Correctional Services’ and Homeland Security Investigations (HSI).
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-23.
Guatemalan National Pleads Guilty to ID Theft; more than 100 Illegal Aliens used False ID Scheme to Obtain LicensesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Guatemalan national pleaded guilty in federal court today to aggravated identity theft in connection to a conspiracy to provide false identity documents so that more than 100 illegal immigrants could fraudulently obtain driver’s and non-driver’s licenses from the license office in St. Joseph, which is operated by a contractor for the Missouri Department of Revenue.
Pedro Pablo-Solis, 28, a citizen of Guatemala residing in Liberal, Kan., pleaded guilty before U.S. District Judge Brian C. Wimes to aggravated identity theft.
Illegal aliens traveled across the United States to obtain licenses at the St. Joseph license office by using unlawfully obtained birth certificates and Social Security cards. It is estimated that well over 100 Missouri licenses were unlawfully issued to illegal aliens as part of this conspiracy from July 1, 2010, to Jan. 10, 2012.
Pablo-Solis’s role in the conspiracy was to obtain genuine Social Security cards and birth certificates that were later used by illegal aliens to fraudulently obtain Missouri identification documents. Pablo-Solis, who is illegally present in the United States, provided co-defendant Domingo Ajanel-Castro, 33, a citizen of Guatemala residing in St. Joseph, with identification documents for a specific age range for either a male or a female that corresponded with the illegal alien who was purchasing the document set.
Pablo-Solis is the fifth and final co-defendant to plead guilty in this case. Thomas Richard McNamara III, 26, formerly an employee at the St. Joseph license office, Hector Juarez Mendoza, Sr., 54, a citizen of Mexico who is a lawful permanent resident of the United States, and his wife, Isabel Ramirez Mendoza, 62, and Ajanel-Castro, all of St. Joseph, have pleaded guilty to their roles in a conspiracy to unlawfully produce identification documents, unlawfully transfer the means of identification of another person and commit Social Security fraud and to aggravated identity theft. Ajanel-Castro also pleaded guilty to possessing false or fraudulently obtained identification documents.
The Mendozas and others (including family members, such as her minor son) escorted illegal aliens into the St. Joseph license office under the guise of serving as translators. They charged a fee, typically $100, for assisting the illegal aliens to obtain a Missouri driver’s or non-driver’s license that was in the name of another person who was listed on unlawfully obtained birth certificates and Social Security cards.
The Mendozas also referred illegal aliens to co-conspirators who could assist them in obtaining identification documents that could be used to fraudulently obtain Missouri non-driver’s licenses. The illegal aliens were usually charged between $500 and $950 for the document sets and the Missouri driver’s and non-driver’s licenses.
The Mendozas assisted illegal aliens in preparing for potential questions from the license office employees, such as learning the names on the birth certificates, the names of the parents on the birth certificates, the dates of birth, and the Social Security numbers.
Sometime between June 22, 2009, and Nov. 2, 2011, Isabel Mendoza approached McNamara and asked him to accept identification documents he was not supposed to accept and issue Missouri driver’s or non-driver’s licenses to individuals who were escorted by her and others. In exchange, she offered to pay McNamara a fee of approximately $50 to $100 for each time he issued a license he was not supposed to issue due to the inadequate documentation of their true identity.
McNamara admitted that he accepted improper documents approximately two to three times a week, but he didn’t do this every week. Mendoza often called Isabel McNamara before bringing aliens to the license office to make sure he would be working and to let him know they were bringing in clients. McNamara then met with Isabel Mendoza on numerous occasions during non-work hours at locations other than the licensing office to receive payment.
According to McNamara, it was common knowledge among the employees at the license office that co-conspirators were assisting illegal aliens to obtain licenses.
Pablo-Solis is subject to a mandatory sentence of two years in federal prison without parole, plus a fine up to $250,000. Under the terms of today’s plea agreement, Mendoza must forfeit $125,000 to the government. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Trey Alford. It was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, the Buchanan County, Mo., Sheriff’s Department, the St. Joseph, Mo., Police Department, the Platte County, Mo., Sheriff’s Department, the Missouri State Highway Patrol, the Missouri Department of Revenue Investigation Bureau, the Social Security Administration Office of Inspector General, and the U.S. Postal Inspection Service.
Guatemalan Drug Smuggler ConvictedRead the Press Release
Tampa, Florida - Acting United States Attorney A. Lee Bentley, III announces that a federal jury found Alma Lucrecia Hernandez-Preciado, a/k/a "La Tia," (40, Tecun Uman, Guatemala) guilty last week of two counts of violating the Maritime Drug Law Enforcement Act. An indictment was returned against Hernandez-Preciado, in Tampa, on September 22, 2011. She was arrested in Guatemala on October 10, 2011, and extradited to Tampa in February 2013 to face the charges. Hernandez-Preciado faces a minimum mandatory sentence of 10 years, up to a maximum penalty of life in federal prison. A sentencing hearing is scheduled for December 17, 2013, before the Honorable Susan C. Bucklew.
According to testimony and evidence presented at trial, from a date unknown to the date of the indictment, Hernandez-Preciado conspired with others, including persons who were on board a vessel subject to the jurisdiction of the United States, to possess with intent to distribute and to distribute 5 kilograms or more of cocaine. Hernandez-Preciado was also convicted of aiding and abetting others, including persons who were on board a vessel subject to the jurisdiction of the United States, with respect to the possession with the intent to distribute 5 kilograms or more of cocaine. The evidence presented at trial proved that Hernandez-Preciado organized a series of maritime cocaine smuggling shipments from Ecuador to Guatemala, including a smuggling venture where the crew of a go-fast boat was interdicted by the United States Coast Guard on May 19, 2011, off the coast of Guatemala. During that interdiction, 347 kilograms of cocaine were seized by the Coast Guard.
Evidence presented at trial included testimony from the U.S. Coast Guard, wiretap intercepts conducted by the Guatemalan National Police, cooperating witnesses in the smuggling conspiracy, as well as communications obtained from Hernandez-Preciado by Panama Express Strike Force agents.
This case was investigated by the Panama Express Strike Force, an OCDETF funded operation targeting maritime smuggling. Participating agencies include the Drug Enforcement Administration (DEA), including DEA's Guatemala City Country Office, the Federal Bureau of Investigation (FBI), the United States Coast Guard Investigative Service (CGIS), U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Joint Interagency Task Force - South (JIATFS) and the United States Marshals Service, with assistance from the government of Guatemala and Guatemalan law enforcement agencies.
The case was indicted by Assistant United States Attorney W. Stephen Muldrow and tried by Assistant United States Attorney Joseph K. Ruddy.
Fort Totten Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on Sept. 23, 2013, Charles Marcus Lambert, of Fort Totten, N.D., was sentenced before U.S. District Judge Ralph R. Erickson on a charge of failure to register as a sex offender. Lambert, 33, pleaded guilty to the charges on June 17, 2013.
Judge Erickson sentenced Lambert to 14 months’ imprisonment to be followed by five years of supervised release. He was also ordered to pay a $100 special assessment to the Crime Victim’s Fund.
As the result of a sexual abuse conviction in U.S. District Court on May 11, 2006, Lambert was required to register his address with appropriate authorities in the jurisdiction in which he resides. During the course of his supervised release, Lambert was provided and signed the Notice and Acknowledgment of Duty to Register as Sex Offender on Jan. 12, 2012. At that time, he registered a residence in St. Michael, N.D., as the place he resided. However, from December of 2012 to February of 2013, Lambert did not reside at the registered address and his whereabouts were not known to his supervising probation officer.
The case was investigated by the U.S. Marshals Service.
Assistant U.S. Attorney Janice M. Morley prosecuted the case
Former West Virginia DMV Employee Charged in Driver’s License SchemeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Defendant alleged to have sold licenses for cash
MARTINSBURG, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that KERMIT MILLER, 60 years old, of Martinsburg, WV, has been indicted on 19 counts of fraud in connection with identification documents. It is alleged that MILLER, a former employee of the state Department of Motor Vehicles, fraudulently produced and distributed West Virginia driver's licenses. As part of the alleged scheme, MILLER did not require that the recipients of the licenses complete the required applications or testing, and MILLER received cash in exchange for the identifications that he provided.
MILLER faces up to 15 years in prison on the conspiracy count and up to 5 years in prison on each of the counts of fraud. The U.S. Attorney's Office is also seeking to forfeit the proceeds obtained by MILLER as a result of the alleged criminal violations.
Anyone who has information about this matter or any other matters related to public corruption in the state is encouraged to call the West Virginia Public Corruption Hotline at 1-855- WVA-FEDS.
The case is being investigated by Homeland Security Investigations (HSI) and is being prosecuted by Assistant United States Attorney Jarod J. Douglas. MILLER is presumed innocent until and unless he is proven guilty.
Former President of Qualcomm’s Global Business Operations Indicted for Insider TradingRead the Press Release
Jing Wang, 51, of Del Mar, Calif., a former Executive Vice President and President of Global Business Operations for Qualcomm Inc., was charged with insider trading in shares of both Qualcomm and Atheros Communications Inc. using a secret brokerage account and an offshore shell company in the British Virgin Islands. Wang was also charged with conspiring with his brother, co-defendant Bing Wang, 53, and his former stock broker to obstruct an ongoing U.S. Securities and Exchange Commission (SEC) investigation and laundering the proceeds of his insider trading using a second offshore shell company and secret brokerage account.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Laura E. Duffy of the Southern District of California made the announcement.
“Insider trading is an insidious crime. It undermines ordinary investors’ faith in our financial markets, and the Justice Department has zero tolerance for it,” said Acting Assistant Attorney General Raman. “Today’s charges show that you cannot trade on inside information, pocket the profit, and expect to get away with it. The Criminal Division has had a terrific partnership with the U.S. Attorney’s Office for the Southern District of California in this important investigation, and through partnerships like these throughout the country, we will continue to root out fraud in our markets at every level.”
“When there are two sets of rules – one for the powerful insiders and one for everybody else – the public quickly loses confidence in the stock market,” said U.S. Attorney Duffy. “We intend to restore confidence in our markets by making sure that everyone is playing by the same rules.”
Jing Wang was taken into custody by the FBI earlier today on these charges and is expected to make his initial appearance in federal court in the Southern District of California this afternoon. A warrant has been issued for the arrest of Bing Wang, who is believed to be a citizen and resident of China. Both men are charged in an indictment with conspiracy, which carries a maximum penalty of five years in prison. Jing Wang was also charged with securities fraud, money laundering and obstruction of official proceedings, which each carry a maximum penalty of 20 years in prison, and aggravated identity theft, which carries a mandatory two years in prison, consecutive to any other sentence.
The former stock broker, Gary Yin, was charged with conspiracy in a criminal information filed today in the Southern District of California and is expected to make his initial appearance on Sept. 24, 2013, at 10:00 a.m. in federal court in San Diego.
According to the indictment, Jing Wang used his Merrill Lynch broker, Yin, to create an offshore entity, Unicorn Global Enterprises, in the British Virgin Islands and to open a brokerage account for Unicorn at Merrill Lynch. Jing Wang provided documents to Yin to create the false impression that his brother, Bing Wang, controlled the account, when in fact Jing Wang was the true owner of the account. This allowed Jing Wang to conceal his true ownership and control of the assets in the account and to avoid reporting to U.S. tax authorities. Significantly, it also allowed Jing Wang to disguise his involvement secreting tens of thousands of dollars for use in China.
The indictment alleges that after the creation of the Unicorn account, Jing Wang was named an Executive Vice President of Qualcomm and fell within the company’s insider trading restrictions for officers. As an officer, Wang was exposed to Qualcomm’s confidential business information, and was repeatedly notified that he was not permitted to use material, non-public information to engage in stock transactions.
Among the inside information learned by Jing Wang because of his senior position was the fact that in the first quarter of 2010, Qualcomm was poised to announce an increased quarterly dividend and a stock repurchase program. On March 1, 2010, Jing Wang allegedly acted on this material, non-public information and directed Yin to purchase as much Qualcomm stock as possible in the Unicorn account before the information became public. After the close of trading on March 1, 2010, Qualcomm issued a press release announcing the dividend increase and stock repurchase program, and the company’s stock appreciated approximately 10 percent in value.
According to the indictment, Jing Wang next allegedly engaged in insider trading when he learned that Qualcomm was interested in purchasing Atheros. On Dec. 1, 2010, acting on this information, Jing Wang met with Yin and instructed him to sell all Qualcomm shares in the Unicorn account. Jing Wang then told Yin to make preparations to purchase Atheros with the funds in the account, but to wait for further confirmation. Jing Wang’s broker proceeded to liquidate all of the illegally held Qualcomm stock in the Unicorn account, resulting in ill-gotten gains of approximately $94,709 from the earlier insider trading.
On Dec. 6, 2010, while attending a meeting of Qualcomm’s Board of Directors in Hong Kong, Jing Wang learned that the board had authorized Qualcomm to make a non-public offer to purchase Atheros for $45 per share. Later that same day, Jing Wang allegedly called Yin in San Diego and instructed him to use all available funds in the secret Unicorn account to purchase Atheros stock. The broker followed Jing Wang’s instructions and purchased 10,800 shares at approximately $34 per share, for a total of $366,766.
Qualcomm’s offer to purchase Atheros remained confidential until an article appeared in the Dealbook section of the New York Times’ website on Jan. 4, 2011, and Qualcomm made an official announcement of the deal on Jan. 5, 2011. Between the close of trading on Jan. 3, 2011, and the close of trading on Jan. 5, 2011, the price of Atheros stock jumped from approximately $37 to $44.50 – an increase of approximately 20 percent.
The indictment alleges that Jing Wang engaged in a third incident of insider trading on Jan. 25, 2011, when he learned that Qualcomm was about to release record financial results. Immediately prior to announcement of those earnings, Jing Wang directed Yin to sell all the Atheros stock in the Unicorn account and purchase Qualcomm stock. The broker sold all of Jing Wang’s illegally purchased Atheros stock for $44.60 per share, and used all of the proceeds to purchase Qualcomm stock at $50.87 per share. The following day, after Qualcomm announced the record earnings results, Qualcomm’s stock price increased by approximately $4 per share. All told, Jing Wang illegally gained approximately a quarter of a million dollars from these three illegal transactions.
The indictment and criminal information further allege that in order to conceal his insider trading, Jing Wang conspired with Yin and his brother, Bing Wang, to conceal Jing Wang’s control of the Unicorn account and his illegal purchases of Qualcomm and Atheros stock. Yin and Bing Wang agreed to assist Jing Wang, and the three defendants engaged in a number of activities to obstruct any investigation of the trades, as well as to conceal Jing Wang’s control of the Unicorn account. These obstructive acts included concocting a false cover story that would blame Bing Wang for the illegal trades in Qualcomm and Atheros, concealing Jing Wang’s actual control of the Unicorn account from Merrill Lynch, and transferring the proceeds of Jing Wang’s insider trading to another offshore entity nominally owned by Jing Wang’s mother.
For example, in carrying out the obstruction, the indictment alleges that in January 2012, Jing Wang forged the signature of his mother and used her identification documents to create another British Virgin Islands entity called Clearview Resources Ltd. At Jing Wang’s instruction, Yin created a Merrill Lynch account for Clearview and attempted to further distance Jing Wang from the transactions by transferring all of the money in the Unicorn account to the Clearview account in a series of structured transactions.
Another example of obstructive conduct alleged in the indictment took place in March 2012, when Jing Wang met with Yin and explained that the SEC was investigating Qualcomm. At that time, Jing Wang told Yin he was worried that his control of the Unicorn account and insider trading would be discovered. By that time, the SEC had already issued a subpoena to Jing Wang calling for him to produce information about any brokerage accounts he controlled. Jing Wang pressed Yin to stick to the false cover story he had created earlier – that his brother, Bing Wang, had made the illegal trades. Soon afterwards, Jing Wang gave Yin a number of Merrill Lynch documents related to his Unicorn account and directed Yin to take the documents to China, give them to Bing Wang, and help his brother use them to corroborate the false cover story. Yin agreed, and during two trips to China in 2012, Yin met with Bing Wang, provided him with Unicorn documents removed from the United States, and rehearsed the false cover story. The indictment further alleges that after these meetings, Bing Wang and Yin sent emails to each other containing false and misleading statements in order to make it appear that Bing Wang actually controlled the Unicorn and Clearview accounts.
This case was investigated by the FBI and the Internal Revenue Service–Criminal Investigation. The SEC’s Los Angeles Regional Office also provided assistance, and the SEC today filed a civil complaint against Jing Wang and Yin in federal court in San Diego.
This case is being prosecuted by Trial Attorney James McDonald of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Eric J. Beste, John Parmley and Timothy Perry of the Southern District of California.
Former President of Qualcomm’s Global Business Operations Indicted for Insider TradingRead the Press Release
SAN DIEGO – Jing Wang, a former Executive Vice President and President of Global Business Operations for Qualcomm, Inc. (NASDAQ: QCOM) was charged with insider trading in shares of both Qualcomm and Atheros Communications, Inc. (“Atheros”) using a secret brokerage account and an offshore shell company in the British Virgin Islands.
Wang, 51, of Del Mar, is also charged with conspiring with his brother, co-defendant Bing Wang, and his former Merrill Lynch stock broker, Gary Yin, to obstruct an ongoing SEC investigation, and laundering the proceeds of his insider trading using a second offshore shell company and secret brokerage account.
United States Attorney Laura E. Duffy and Acting Assistant Attorney General for the Justice Department’s Criminal Division Mythili Raman announced that Wang was taken into custody at the Federal Bureau of Investigation earlier today on these charges, and is expected to make his initial appearance in federal court in the Southern District of California at 2 p.m. before U.S. Magistrate Judge Nita Stormes. A warrant has been issued for the arrest of Bing Wang, 53, who is believed to be a citizen and resident of China.
Yin, the former stock broker, was charged in a criminal information filed today in the Southern District of California, and is expected to make his initial appearance on Tuesday, September 24, at 10:00 a.m. in federal court in San Diego, also before Judge Stormes.
“When there are two sets of rules – one for the powerful insiders and one for everybody else – the public quickly loses confidence in the stock market,” Duffy said. “We intend to restore confidence in our markets by making sure that everyone is playing by the same rules.”
FBI Special Agent in Charge, Daphne Hearn, commented, "Insider trading investigations are important, because our nation's economy is increasingly dependent on the success and integrity of the stocks and commodities markets. The FBI's message is simple, if your information is inside information, you can't trade on it."
“Mr. Wang has been charged with using offshore entities and secret brokerage accounts to conceal and disguise illicit profits from insider trading. Our special agents are experts in following the financial transactions that unravel complex schemes where individuals who use nominee offshore accounts believe they are out of the reach of the IRS,” said Richard Weber, Chief, IRS Criminal Investigation. “These individuals face severe consequences including imprisonment and substantial fines.”
“Insider trading is an insidious crime. It undermines ordinary investors’ faith in our financial markets, and the Justice Department has zero tolerance for it,” said Acting Assistant Attorney General Raman. “Today’s charges show that you cannot trade on inside information, pocket the profit, and expect to get away with it. The Criminal Division has had a terrific partnership with the U.S. Attorney’s Office for the Southern District of California in this important investigation, and through partnerships like these throughout the country, we will continue to root out fraud in our markets at every level.”
According to the indictment, Wang used his Merrill Lynch broker (Yin) to create the offshore entity, Unicorn Global Enterprises (“Unicorn”), in the British Virgin Islands and to open a brokerage account for Unicorn at Merrill Lynch. Wang provided documents to Yin to create the false impression that his brother, Bing Wang, controlled the account, when in fact Qualcomm’s Wang was the true owner of the account. This allowed Wang to conceal his true ownership and control of the assets in the account and to avoid reporting to U.S. tax authorities. Significantly, it also allowed Wang to disguise his transfer of large sums of money to China.
The indictment alleges that after the creation of the Unicorn account, Wang was named an Executive Vice President of Qualcomm and fell within the company’s insider trading restrictions for officers. As an officer, Wang was exposed to Qualcomm’s confidential business information, and was repeatedly notified that he was not permitted to use material, non-public information to engage in stock transactions.
Among the inside information learned by Wang because of his senior position was the fact that in the first quarter of 2010, Qualcomm was poised to announce an increased quarterly dividend and a stock repurchase program. On March 1, 2010, Wang allegedly acted on this material nonpublic information and directed Yin to purchase as much Qualcomm stock as possible in the Unicorn account before the information became public. After the close of trading on that same day, Qualcomm issued a press release announcing the dividend increase and stock repurchase program, and the company’s stock appreciated approximately 10 percent in value.
According to the indictment, Wang next engaged in insider trading when he learned that Qualcomm was interested in purchasing Atheros. On December 1, 2010, acting on this information, Wang met with Yin and instructed him to sell all Qualcomm shares in the Unicorn account. Wang then told Yin to make preparations to purchase Atheros with the funds in the account, but to wait for further confirmation. Wang’s broker proceeded to liquidate all of the illegally held Qualcomm stock in the Unicorn account, resulting in ill-gotten gains of approximately $94,709 from the earlier insider trading.
The indictment alleges that on December 6, 2010, while attending a meeting of Qualcomm’s Board of Directors in Hong Kong, Wang learned that the board authorized Qualcomm to make a non-public offer to purchase Atheros for $45 per share. Later that same day, Wang called Yin in San Diego and instructed him to use all available funds in the secret Unicorn account to purchase Atheros stock, the indictment said. The broker followed Wang’s instructions and purchased 10,800 shares at approximately $34 per share for a total of $366,766.
Qualcomm’s offer to purchase Atheros remained confidential until an article appeared in the Dealbook section of the New York Times’ website on January 4, 2011, and Qualcomm made an official announcement of the deal on January 5, 2011. Between the close of trading on January 3, 2011, and the close of trading on January 5, 2011, the price of Atheros stock jumped from approximately $37 to $44.50 – an increase of close to 20 percent.
The indictment alleges that Wang engaged in a third incident of insider trading on January 25, 2011, when he learned that Qualcomm was about to release record financial results. Immediately prior to announcement of those earnings, Wang directed Yin to sell all the Atheros stock in the Unicorn account and purchase Qualcomm stock. The broker sold all of Wang’s illegally purchased Atheros stock for $44.60 per share, and used all of the proceeds to purchase Qualcomm stock at $50.87 per share. The following day, after Qualcomm announced the record earnings results, Qualcomm’s stock price increased by approximately $4 per share. All told, Wang illegally gained approximately a quarter of a million dollars from these three illegal transactions.
The indictment and criminal information further alleges that in order to conceal his insider trading, Wang conspired with his brother, Bing Wang, and Yin, to conceal Wang’s control of the Unicorn account and his illegal purchases of Qualcomm and Atheros stock. Yin and Bing Wang allegedly agreed to assist Wang, and the three defendants engaged in a number of activities to obstruct any investigation of the trades, as well as to conceal Wang’s control of the Unicorn account. These obstructive acts included concocting a false cover story that would blame Bing Wang for the illegal trades in Qualcomm and Atheros, concealing Wang’s actual control of the Unicorn account from Merrill Lynch, and transferring the proceeds of Wang’s insider trading to another offshore entity nominally owned by Wang’s mother.
For example, in carrying out the obstruction, the indictment alleges that in January 2012, Wang forged the signature of his mother and used her identification documents to create another British Virgin Islands entity called Clearview Resources, Ltd (“Clearview”). At Wang’s instruction, Yin created a Merrill Lynch account for Clearview, and attempted to further distance Wang from the transactions by transferring all of the money in the Unicorn account to the Clearview account in a series of structured transactions.
Another example of obstructive conduct alleged in the indictment took place in March 2012, when Wang met with Yin and explained that the SEC was investigating Qualcomm. At that time, Wang told Yin he was worried that his control of the Unicorn account and insider trading would be discovered. By that time, the SEC had already issued a subpoena to Wang calling for him to produce information about any brokerage accounts he controlled. Wang allegedly pressed Yin to stick to the false cover story he had created earlier – that his brother Bing Wang was the person who made the illegal trades, not him. Soon afterwards, Wang gave Yin a number of Merrill Lynch documents related to his Unicorn account and directed his broker to take the documents to China, give them to Bing Wang, and help his brother use them to corroborate the false cover story. Yin agreed, and during two trips to China in 2012, Yin met with Bing Wang, provided him with Unicorn documents removed from the United States, and rehearsed the false cover story. The indictment further alleges that after these meetings, Bing Wang and Yin sent emails to each other containing false and misleading statements in order to make it appear that Bing Wang actually controlled the Unicorn and Clearview accounts.
United States Attorney Duffy praised the efforts of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation for piecing together this complex, international insider trading scheme. United States Attorney Duffy also thanked the SEC’s Los Angeles Regional Office for its assistance, and noted that the SEC had today filed a civil complaint against Wang and Yin in federal court in San Diego.
*The public is reminded that indictments and informations are not evidence that the defendants committed the crime charged. The defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
DEFENDANT Criminal Case No. 13CR3487-H Jing Wang
Bing WangAge: 51
Del Mar, CA
Age: 53
China SUMMARY OF CHARGESTitle 15 U.S.C. Sections 78j(b), 78ff and 17 C.F.R. § 240.10b-5—Securities Fraud (Insider Trading). Maximum Penalty: 20 years custody, a maximum fine of $5 million, five years supervised release, and $100 special assessment.
Title 18 U.S.C. Section 371 – Conspiracy (Obstruction of Justice and Money Laundering). Maximum Penalty: 5 years custody, a maximum $250,000 fine, three years supervised release and $100 special assessment.
Title 18 U.S.C. Section 1512(c)(1) and (c)(2) -- Obstruction of Official Proceedings. Maximum Penalty: 20 years custody, a maximum fine of $250,000 years supervised release, and $100 special assessment.
Title 18 U.S.C. 1956 – Money Laundering. Maximum Penalty: 20 years custody, a maximum fine of $250,000 years supervised release, and $100 special assessment.
Title 18 U.S.C. 1028A – Aggravated Identity Theft. Maximum Penalty: Mandatory two years custody consecutive to any other sentence.
DEFENDANT Criminal Case No. 13CR3487-H Bing WangAge: 53
China SUMMARY OF CHARGESTitle 18 U.S.C. Section 371 – Conspiracy (Obstruction of Justice and Money Laundering).
DEFENDANT Criminal Case No. 13CR3488 Gary Yin
Maximum Penalty: 5 years custody, a maximum $250,000 fine, three years supervised release and $100 special assessment.Age: 54
San Diego SUMMARY OF CHARGESTitle 18 U.S.C. Section 371 – Conspiracy to commit offenses against the United States.
INVESTIGATING AGENCIES
Maximum Penalty: 5 years custody, a maximum $250,000 fine, three years supervised release and $100 special assessment.Federal Bureau of Investigation
Internal Revenue Service-Criminal InvestigationFormer Middle School Teacher Sentenced to Federal Prison for Receipt and Possession of Child PornographyRead the Press Release
United States Attorney Laura E. Duffy announced today that Timothy James Hensley was sentenced to serve 70 months in federal prison, in addition to five years of supervised release, and to register as a sex offender, by United States District Court Judge Irma E. Gonzalez. Hensley, a former local middle school teacher at Bell Middle School, in San Diego, pled guilty on May 16, 2013 to a five count indictment charging him with receipt and possession of child pornography.
As part of his guilty plea, Hensley admitted to receiving images of a minor female approximately 10 years of age engaged in sexually explicit conduct as well as to possessing an iMac computer and computer disks containing images depicting minors engaged in sexually explicit conduct, in violation of Title 18, United States Code, Section 2252(a)(2) and (4)(B). According to court records, several of these images depicted prepubescent minors engaged in sexually explicit conduct. The defendant was arrested by special agents with Homeland Security Investigations on January 15, 2013, following the execution of a federal search warrant at Hensley’s residence.
This case stems from an investigation by the Department of Homeland Security, Immigration and Customs Enforcement's Homeland Security Investigations.
This case was brought as part of the Department of Justice’s Project Safe Childhood, and ICE's Operation Predator, both are nationwide initiatives launched to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Office and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources." For more information about on Operation Predator, please visit www.ice.gov.
DEFENDANT Criminal Case No. 13cr0393-IEG Timothy James Hensley CA SUMMARY OF CHARGESThree Counts: Title 18, United States Code, Section 2252(a)(2) (Receipt of Child Pornography)
Two Counts: Title 18, United States Code, Section 2252(a)(4)(B) - Possession of Child Pornography
INVESTIGATING AGENCYImmigration and Customs Enforcement’s Homeland Security Investigations
Former Federal Contractor Petitions to Plead Guilty to Unlawfullly Disclosing National Defense Information and Distributing Child PornographyRead the Press Release
Donald John Sachtleben, a former FBI bomb technician who later worked as a government contractor for the agency, has filed a petition to plead guilty to newly filed charges of unlawfully disclosing national defense information relating to a disrupted terrorist plot. Sachtleben previously had filed a petition to plead guilty to charges of possessing and distributing child pornography resulting from a separate investigation.
Sachtleben, 55, of Carmel, Ind., has signed plea agreements in both cases. The documents were filed today in the U.S. District Court for the Southern District of Indiana. Charges in the national security case were filed today, and charges in the child pornography case were filed in May 2012.
The developments were announced by Deputy Attorney General James M. Cole; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia Joseph H. Hogsett, U.S. Attorney for the Southern District of Indiana, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
The plea agreements signed by the parties would resolve both cases in court proceedings in Indiana. The agreements, which are contingent upon the Court’s approval, call for Sachtleben to plead guilty to the two national security charges as well as the two child pornography offenses. The plea agreements call for Sachtleben to be sentenced to a total of 140 months of incarceration, including a 43-month prison term for the national security offenses and a consecutive 97-month term for the child pornography charges.
The statements of offense related to both the national defense charges and the child pornography charges are attached.
“This unauthorized and unjustifiable disclosure severely jeopardized national security and put lives at risk,” Deputy Attorney General Cole said. “To keep the country safe, the department must enforce the law against such critical and dangerous leaks, while respecting the important role of the press under the department’s media guidelines and any shield law enacted by Congress. I am grateful to the FBI and the U.S. Attorneys’ offices in both Washington, D.C., and Indiana for their excellent and dedicated work on this case.”
“Fifteen months ago, we were given the task of uncovering who had threatened a sensitive intelligence operation and endangered lives by illegally disclosing classified information relating to a disrupted al-Qaeda suicide bomb plot,” said U.S. Attorney Machen. “That plot could not have been more serious, as it targeted a plane bound for the United States. After unprecedented investigative efforts by prosecutors and FBI agents and analysts, today Donald Sachtleben has been charged with this egregious betrayal of our national security. This prosecution demonstrates our deep resolve to hold accountable anyone who would violate their solemn duty to protect our nation’s secrets and to prevent future, potentially devastating leaks by those who would wantonly ignore their obligations to safeguard classified information.”
“The allegations in this case describe the defendant’s repeated violation of a sacred trust that the public had placed in him,” said U.S. Attorney Hogsett. “With these charges, a message has been sent that this type of behavior is completely unacceptable and no person is above the law.”
“Today, Mr. Sachtleben has been charged with knowingly and willfully disclosing national defense information to a member of the media,” said Assistant Director in Charge Parlave. “These charges are the result of a careful and thorough investigation by FBI Special Agents and analysts who, together with federal prosecutors, systematically conducted more than 500 interviews and, following that exhaustive process, analyzed relevant telephone records obtained by subpoena. After analysis of the telephone records, investigators identified him as the source of this unlawful disclosure. The FBI will continue to take all necessary steps to pursue such individuals who put the security of our nation and the lives of others at risk by their disclosure of sensitive information.”
National Security Case:
According to a criminal information filed today, on May 2, 2012, nine days before Sachtleben was arrested in Indiana on child pornography charges, Sachtleben knowingly and willfully disclosed national defense information to a reporter for a national news organization not entitled to receive it. The charging document alleges that Sachtleben had reason to believe that this information could be used to the injury of the United States and to the advantage of a foreign nation. The criminal information also charges him with willfully retaining documents relating to the national defense without authorization.
Sachtleben worked for the FBI from 1983 through 2008. During his career, he was a Special Agent Bomb Technician and was assigned to work on many major cases involving terrorist attacks. In his work as an FBI employee, Sachtleben held a Top Secret security clearance and had regular access to classified and national defense information relating to the FBI’s activities, as well as the activities of other members of the U.S. intelligence community.
In 2008, Sachtleben retired from the FBI and was rehired as a contractor. Because of his official responsibilities, he maintained his Top Secret security clearance as an FBI contractor. As a result, he continued to have regular access to classified and national defense information relating to the FBI’s activities, as well as the activities of other members of the U.S. intelligence community. As a contractor, he routinely visited the FBI Lab in Quantico, Va.
One of the criminal charges involves Sachtleben’s contacts with the reporter relating to the disruption of a plot to conduct a suicide bomb attack on a U.S.-bound airliner by the Yemen-based terrorist organization Al-Qaeda in the Arabian Peninsula and the recovery by the United States of a bomb in connection with that plot. As a result of Sachtleben’s disclosure of national defense information to the reporter, the national security of the United States was compromised, a significant international intelligence operation was placed in jeopardy, and lives were put at risk.
Sachtleben was identified as a suspect in the case of this unauthorized disclosure only after toll records for phone numbers related to the reporter were obtained through a subpoena and compared to other evidence collected during the leak investigation. This allowed investigators to obtain a search warrant authorizing a more exhaustive search of Sachtleben’s cell phone, computer, and other electronic media, which were in the possession of federal investigators due to the child pornography investigation.
Sachtleben was employed as an FBI contractor until on or about May 11, 2012. The following day, he was arrested in Indiana and charged by complaint with the federal child pornography charges.
Child Pornography Case:
According to a criminal complaint filed in Indiana in May 2012, federal and state investigators became aware of an individual trading images of child pornography online in September 2010. An extensive investigation into that individual led to the arrest of a defendant in Illinois in January 2012. Upon arrest, a forensic search of that defendant’s computer equipment and email accounts allegedly revealed that he had been actively trading the explicit materials online with numerous other people.
Based on that information, law enforcement traced the alleged online activity to Sachtleben’s home in Carmel. After conducting several days of surveillance, a search warrant was executed on May 11, 2012, by law enforcement officers from the Indiana State Police and the FBI Cyber Crime Task Force. Sachtleben was charged in the Southern District of Indiana with possession and distribution of child pornography.
The complaint alleges that an initial forensic examination of Sachtleben’s laptop computer revealed the presence of approximately 30 images and video files containing child pornography. It is alleged that a number of files identified during this initial search matched those that had been found in the course of investigating the Illinois defendant. The complaint further alleges that the laptop’s hard drive contained references to other files known to have been in the possession of the Illinois defendant.
**
A criminal complaint and a criminal information are only charges and are not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
**The national security investigation was conducted by the FBI’s Washington Field Office with assistance from the FBI’s Indianapolis Field Office. The prosecution is being handled by Assistant U.S. Attorneys Jonathan M. Malis and G. Michael Harvey of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Richard S. Scott of the Counterespionage Section of the Justice Department’s National Security Division. Assistance was provided by Assistant U.S. Attorney Mona N. Sahaf of the U.S. Attorney’s Office for the District of Columbia, and Senior Litigation Counsel Steven D. DeBrota of the U.S. Attorney’s Office for the Southern District of Indiana, who is also prosecuting the child pornography case.
The child pornography investigation was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more on Project Safe Childhood, visit www.projectsafechildhood.gov.
Related Materials:
Statement of Offense - National Security
Factual Basis - Child PornographyFormer Federal Contractor Petitions to Plead Guilty to Unlawfully Disclosing National Defense Information and Distributing Child PornographyRead the Press Release
WASHINGTON - Donald John Sachtleben, a former FBI bomb technician who later worked as a government contractor for the agency, has filed a petition to plead guilty to newly filed charges of unlawfully disclosing national defense information relating to a disrupted terrorist plot. Sachtleben previously had filed a petition to plead guilty to charges of possessing and distributing child pornography resulting from a separate investigation.
Sachtleben, 55, of Carmel, Ind., has signed plea agreements in both cases. The documents were filed today in the U.S. District Court for the Southern District of Indiana. Charges in the national security case were filed today, and charges in the child pornography case were filed in May 2012.
The developments were announced by Deputy Attorney General James M. Cole; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia Joseph H. Hogsett, U.S. Attorney for the Southern District of Indiana, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
The plea agreements signed by the parties would resolve both cases in court proceedings in Indiana. The agreements, which are contingent upon the Court’s approval, call for Sachtleben to plead guilty to the two national security charges as well as the two child pornography offenses. The plea agreements call for Sachtleben to be sentenced to a total of 140 months of incarceration, including a 43-month prison term for the national security offenses and a consecutive 97-month term for the child pornography charges.
The statements of offense related to both the national defense charges and the child pornography charges are attached.
“This unauthorized and unjustifiable disclosure severely jeopardized national security and put lives at risk,” Deputy Attorney General Cole said. “To keep the country safe, the department must enforce the law against such critical and dangerous leaks, while respecting the important role of the press under the department’s media guidelines and any shield law enacted by Congress. I am grateful to the FBI and the U.S. Attorneys’ offices in both Washington, D.C., and Indiana for their excellent and dedicated work on this case.”
“Fifteen months ago, we were given the task of uncovering who had threatened a sensitive intelligence operation and endangered lives by illegally disclosing classified information relating to a disrupted al-Qaeda suicide bomb plot,” said U.S. Attorney Machen. “That plot could not have been more serious, as it targeted a plane bound for the United States. After unprecedented investigative efforts by prosecutors and FBI agents and analysts, today Donald Sachtleben has been charged with this egregious betrayal of our national security. This prosecution demonstrates our deep resolve to hold accountable anyone who would violate their solemn duty to protect our nation’s secrets and to prevent future, potentially devastating leaks by those who would wantonly ignore their obligations to safeguard classified information.”
“The allegations in this case describe the defendant’s repeated violation of a sacred trust that the public had placed in him,” said U.S. Attorney Hogsett. “With these charges, a message has been sent that this type of behavior is completely unacceptable and no person is above the law.”
“Today, Mr. Sachtleben has been charged with knowingly and willfully disclosing national defense information to a member of the media,” said Assistant Director in Charge Parlave. “These charges are the result of a careful and thorough investigation by FBI Special Agents and analysts who, together with federal prosecutors, systematically conducted more than 500 interviews and, following that exhaustive process, analyzed relevant telephone records obtained by subpoena. After analysis of the telephone records, investigators identified him as the source of this unlawful disclosure. The FBI will continue to take all necessary steps to pursue such individuals who put the security of our nation and the lives of others at risk by their disclosure of sensitive information.”
National Security Case:
According to a criminal information filed today, on May 2, 2012, nine days before Sachtleben was arrested in Indiana on child pornography charges, Sachtleben knowingly and willfully disclosed national defense information to a reporter for a national news organization not entitled to receive it. The charging document alleges that Sachtleben had reason to believe that this information could be used to the injury of the United States and to the advantage of a foreign nation. The criminal information also charges him with willfully retaining documents relating to the national defense without authorization.
Sachtleben worked for the FBI from 1983 through 2008. During his career, he was a Special Agent Bomb Technician and was assigned to work on many major cases involving terrorist attacks. In his work as an FBI employee, Sachtleben held a Top Secret security clearance and had regular access to classified and national defense information relating to the FBI’s activities, as well as the activities of other members of the U.S. intelligence community.
In 2008, Sachtleben retired from the FBI and was rehired as a contractor. Because of his official responsibilities, he maintained his Top Secret security clearance as an FBI contractor. As a result, he continued to have regular access to classified and national defense information relating to the FBI’s activities, as well as the activities of other members of the U.S. intelligence community. As a contractor, he routinely visited the FBI Lab in Quantico, Va.
One of the criminal charges involves Sachtleben’s contacts with the reporter relating to the disruption of a plot to conduct a suicide bomb attack on a U.S.-bound airliner by the Yemen-based terrorist organization Al-Qaeda in the Arabian Peninsula and the recovery by the United States of a bomb in connection with that plot. As a result of Sachtleben’s disclosure of national defense information to the reporter, the national security of the United States was compromised, a significant international intelligence operation was placed in jeopardy, and lives were put at risk.
Sachtleben was identified as a suspect in the case of this unauthorized disclosure only after toll records for phone numbers related to the reporter were obtained through a subpoena and compared to other evidence collected during the leak investigation. This allowed investigators to obtain a search warrant authorizing a more exhaustive search of Sachtleben’s cell phone, computer, and other electronic media, which were in the possession of federal investigators due to the child pornography investigation.
Sachtleben was employed as an FBI contractor until on or about May 11, 2012. The following day, he was arrested in Indiana and charged by complaint with the federal child pornography charges.
Child Pornography Case:
According to a criminal complaint filed in Indiana in May 2012, federal and state investigators became aware of an individual trading images of child pornography online in September 2010. An extensive investigation into that individual led to the arrest of a defendant in Illinois in January 2012. Upon arrest, a forensic search of that defendant’s computer equipment and email accounts allegedly revealed that he had been actively trading the explicit materials online with numerous other people.
Based on that information, law enforcement traced the alleged online activity to Sachtleben’s home in Carmel. After conducting several days of surveillance, a search warrant was executed on May 11, 2012, by law enforcement officers from the Indiana State Police and the FBI Cyber Crime Task Force. Sachtleben was charged in the Southern District of Indiana with possession and distribution of child pornography.
The complaint alleges that an initial forensic examination of Sachtleben’s laptop computer revealed the presence of approximately 30 images and video files containing child pornography. It is alleged that a number of files identified during this initial search matched those that had been found in the course of investigating the Illinois defendant. The complaint further alleges that the laptop’s hard drive contained references to other files known to have been in the possession of the Illinois defendant.
A criminal complaint and a criminal information are only charges and are not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
The national security investigation was conducted by the FBI’s Washington Field Office with assistance from the FBI’s Indianapolis Field Office. The prosecution is being handled by Assistant U.S. Attorneys Jonathan M. Malis and G. Michael Harvey of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Richard S. Scott of the Counterespionage Section of the Justice Department’s National Security Division. Assistance was provided by Assistant U.S. Attorney Mona N. Sahaf of the U.S. Attorney’s Office for the District of Columbia, and Senior Litigation Counsel Steven D. DeBrota of the U.S. Attorney’s Office for the Southern District of Indiana, who is also prosecuting the child pornography case.
The child pornography investigation was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more on Project Safe Childhood, visit www.projectsafechildhood.gov.
13-332Felon to Spend 10 Years in Federal Prison for Possessing Firearm in WaterlooRead the Press Release
Text oA felon who possessed a 9 millimeter pistol during a Waterloo traffic stop was sentenced today to 10 years in federal prison.
Delvonn Battle, 31, from Des Moines, Iowa, received the prison term after a May 23, 2013 jury verdict finding him guilty of possessing the firearm as a felon.
The evidence at trial showed that the Waterloo Police Department stopped a vehicle just before midnight on January 13, 2012. Ryan Marshall, a friend of Battle’s, was driving the vehicle. Battle was seated in the front passenger seat and a third occupant, Darrell Hardy, was in the rear seat. Police officers found the loaded firearm directly under Battle’s seat. Battle was a felon.
Battle was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Battle was sentenced to 120 months’ imprisonment, which was the maximum possible sentence. A special assessment of $100 was imposed. Battle must serve a 3-year term of supervised release after the prison term. There is no parole in the federal prison.
Battle’s sentence was enhanced based on the Court’s finding that defendant used the firearm in a shooting at a busy Des Moines gas station just one month prior to the traffic stop. State ballistics evidence showed that the firearm found under Battle’s seat was the exact same firearm used in the shooting. Four shots were fired, with one shot hitting the victim in the leg. A police officer at the scene of the shooting provided a physical description of the shooter, which matched Battle’s general description. An eyewitness to the shooting also testified at trial. This witness personally knew Battle, and testified that Battle was the shooter.
Battle is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot, and was investigated by the Waterloo Police Department Violence Crime Apprehension Team (VCAT), the Iowa Division of Narcotics Enforcement, and the Tri-County Drug Task Force, which is composed of the Waterloo Police Department, Cedar Falls Police Department, Waverly Police Department, Bremer County Sheriff’s Office, Black Hawk County Sheriff’s Office, LaPorte City Police Department, Evansdale Police Department, Hudson Police Department, and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-2005.
Eight Arrested and Indicted on Federal Drug Conspiracy and Gun ChargesRead the Press Release
CHARLOTTE, N.C. – Federal agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and officers with the Gaston County and Bessemer City Police Departments arrested eight defendants today during an early morning sweep, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Those arrested are charged with multiple federal drug trafficking and gun offenses.
U.S. Attorney Tompkins is joined in making today’s announcement by Wayne L. Dixie, Special Agent in Charge of ATF’s Charlotte Field Division, Chief James W. Buie, of the Gaston County Police Department and Chief Thomas Ellis of the Bessemer City Police Department.
Today’s arrests and indictments are the result of an ongoing joint law enforcement action that began in April 2012 as a focused initiative to reduce drug trafficking and violent crime in Gaston County, with special emphasis placed in the Vantine Neighborhood.
A 60-count criminal bill of indictment against the defendants was returned by a Charlotte grand jury on Wednesday, September 18, 2013. Portions of the indictment were unsealed today following the arrest of eight of the named defendants. Those arrested and charged are:
• Patrick Gerard Chambers, a/k/a “P-Chains,” 30 of Gastonia. • Robert Chavius Floyd, 23, of Bessemer City, N.C. • Rashon Donte Hunter, 18, of Bessemer City. • Omaris Dushawn McMiller, a/k/a “Turbo,” 32, of Gastonia. • Darral Javarius Anderson, a/k/a “Little Pete,” 25, of Bessemer City. • Michael Travis Floyd, a/k/a “Chad,” 34, of Bessemer City. • Joshua Rodregus Glenn, a/k/a “Paper,” 28, of Bessemer City/Gastonia. • Bryan Anthony Sanders, a/k/a “Bubba,” 35, of Kings Mountain, N.C.Over the course of the investigation, law enforcement have seized five handguns, two SKS rifles (one with ammunition and scope attached), U.S. currency, a vehicle, drugs and drug-making paraphernalia.
The eight defendants’ initial appearances were held today in U.S. District Court in Charlotte. Detention hearings have been scheduled for Thursday, September 26, 2013. The remaining defendants charged in the indictment are considered fugitives. Their names will remain under seal until they have been apprehended by law enforcement.
“Reducing violent crime across our district is a top priority for my office. Federal, state and local law enforcement partners are coordinating their efforts to identify communities plagued by rampant drug trafficking and to prosecute offenders who spread crime in our neighborhoods. Our mission is to make our streets safer and to protect our communities from drugs and violence,” said U.S. Attorney Tompkins.
“The use of firearms to commit violent criminal acts involved in the drug trade that terrorizes our communities simply cannot be tolerated,” said Charlotte ATF Special Agent in Charge Wayne Dixie. “Along with our law enforcement partners, ATF will continue to identify those violent felons that just don’t get that message. We will use all of our joint resources to hold the violent drug dealers accountable and make the streets of our neighborhoods a safer place to live.”
“A successful operation like this one can only be accomplished through collaboration and communication. Together with our law enforcement partners, were are committed to reducing crime, bringing violent offenders to justice and improving the quality of life for the citizens of Gaston County,” stated Chief Buie of Gaston Co. Police Department.
“Continued joint special operations like this keep the citizens of Bessemer City safe. The sharing of information on violent criminals and their movements assist all law enforcement agencies to keep their citizens safe. The Bessemer City Police is dedicated to effective and efficient law enforcement operations to protect our citizens,” said Chief Ellis of Bessemer City Police Department.
The charges contained in these indictments are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation is being handled by the ATF, Gaston Co. PD, and Bessemer City PD. The prosecution is being handled by Assistant U.S. Attorney Ann Claire Phillips of the U.S. Attorney’s Office in Charlotte.
East St. Louis Man Sentenced to Prison for Possession of A Firearm by A Convicted FelonRead the Press Release
Dartavious Thomas, 30, of East St. Louis, Illinois, was sentenced in federal district court on September 23, 2013, to 30 months in prison, to be followed by 1 year of supervised release, a $100 special assessment, and a fine of $200, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The charges relate to an incident that occurred on February 5, 2013, in East St. Louis, Illinois, when law enforcement agents, performing a parole compliance check at Thomas’s home, found a firearm, which Thomas was forbidden from possessing as a previously-convicted felon. Thomas was previously convicted of Criminal Trespass to a Residence, in violation of Illinois law, in St. Clair County, Illinois, Case No. 12-CF-156, on or about July 18, 2012. The sentencing judge also ordered forfeiture of the firearm and twelve rounds of ammunition contained therein.
The case was investigated by members of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorney Stephen B. Clark.