Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Monday 5 August 2013
Hundreds of children are being trafficked for sex in portlandRead the Press Release
U.S. Attorney's Office commissioned study, conducted by Portland State University, documents wide spread victimization of children in the Portland metro areaPORTLAND, Ore. – Today, U.S. Attorney Amanda Marshall and Portland State University released the findings of a research study documenting that at least 469 children were the victims of sex trafficking in the last four years.
The Portland State University (PSU) study was sought by the United States Attorney’s Office and conducted in partnership with the Department of Human Services Child Welfare (DHS) and the Sexual Assault Resource Center (SARC), in order to quantify the scope of child sex trafficking in the Portland area and provide data to guide intervention and services for these children.
“The results of the PSU study are truly shocking,” said U.S. Attorney Amanda Marshall. “The data confirms that we have a devastating epidemic of child sex trafficking within our community – an epidemic that demands action.”
To see a copy of the report, click here.
To see local news coverage, click KGW, KATU, KOIN, Oregonlive
Christopher Carey, PhD, JD of Portland State University and Lena Teplitsky, Portland State MPH Candidate collected quantitative and qualitative data on documented Commercial Sexual Exploitation of Children (CSEC) cases in the Portland Metro Area between December 2012 and June 2013.
What we found:- At least 469 children were trafficked for sex in the Portland Metro Area in the last four years. This number represents CSEC victims served by DHS & SARC.
- The average age at which victims were referred to DHS or SARC was 15.5. The youngest victim in the system was 8. (See footnote 1)
- 96% of victims are female, close to 3% are male, and approximately 1% are transgender.
- 40.51% of victims are Caucasian, 27.08% are African American, and 5.12% are Hispanic. (See footnote 2)
- 16.62% have had a baby.
- 50.85% of active CSEC cases served by SARC have a gang connection.
Given the covert nature of CSEC, cases are widely underreported. As a result, the findings in this report are very conservative. Collecting standardized data for victims is also difficult due to the highly-sensitive nature of the information, as well as the perceived danger that may result from disclosure. The data utilized for this study came exclusively from DHS and SARC, as law enforcement data has not been standardized to date.
“By quantifying the problem we are giving policy makers, social service providers, and other stakeholders the data they need to respond to the needs of these children,” noted U.S. Attorney Marshall. “My office works hand-in-hand with the FBI’s Child Sexual Exploitation Task Force, and other state and local partners, to aggressively prosecute sex trafficking cases. We currently have twelve open cases against pimps and we recently indicted a john on federal charges. Still, for every indictment, there are dozens of cases we cannot bring because the child who was trafficked is back on the street – and to solve that problem we need to find and provide safe and secure placements for these kids.”
1 These age figures reflect age at first referral to a support agency, not age at which exploitation began to occur.
2 African Americans make up 5.8% of Multnomah County’s population (2% of the state population).
Hogsett Announces Update in Federal Prosecution of Bartholomew County ManRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Samuel E. Sallee, age 55, a resident of Bartholomew County, has been brought into federal custody after being charged with illegally possessing a firearm. Sallee’s criminal history includes a number of prior felonies, including a 2005 charge of intimidation in Jennings County, a 1989 charge of driving while intoxicated in Bartholomew County, and additional charges related to the use of controlled substances.
“With the launch of our Violent Crime Initiative, this office pledged to fully support our local law enforcement partners in their public safety efforts,” Hogsett said. “We continue to work closely with Bartholomew County law enforcement in this matter, and we are committed to ensuring this defendant is held to account for any crimes he has committed.”
An indictment returned on May 14, 2013, alleges that law enforcement found Sallee to have possessed a Ruger, Model 10/22 .22 caliber rifle, serial number 157425. Due to his prior felony convictions, Sallee is not legally permitted to possess a firearm.
Court documents unsealed today provide additional details as to the investigation and arrest of Sallee. According to the criminal complaint, four victims (three male, one female) were found deceased at a Bartholomew County residence on May 11, 2013. Investigators allege that Sallee had been present at the residence earlier in the day, where he was allegedly attempting to trade one of the victims a .22 caliber rifle for some quantity of methamphetamine.
A search warrant was executed at Sallee’s residence on May 14, 2013. During the search of a detached garage, law enforcement allegedly located the Ruger .22 caliber rifle, as well as additional evidence, including several pieces of jewelry that have been identified as having belonged to the female victim.
The defendant had previously been held in the Brown County jail on unrelated state charges, but had a “hold” placed on him as a result of the federal indictment. Upon his scheduled release this morning, Sallee was taken into federal custody by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives, and transported to Indianapolis for an initial appearance.
This prosecution comes as part of the U.S. Attorney’s Violent Crime Initiative, and is the result of a collaborative investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bartholomew County Sheriff’s Office, the Bartholomew County Prosecutor’s Office, as well as the U.S. Marshals Service.
Announced in March of 2011, the Violent Crime Initiative represents a district-wide strategy to work with local law enforcement and county prosecutors to combat drug traffickers and criminals that use and carry firearms in their illegal activities. The VCI has produced a dramatic increase in the number of gun-related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney’s Office. In the nearly two years since, more than 200 defendants have been charged.
According to Assistant U.S. Attorney Matthew P. Brookman, who is prosecuting the case for the government, Sallee faces up to ten years in federal prison if he is convicted. A criminal complaint or an indictment 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.
Former Hedge Fund Principal Sentenced in Manhattan Federal Court to Two Years in Prison for Stealing over $2 Million in Investor FundsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that BERTON HOCHFELD, the former Manager of Hochfeld Capital Management, L.L.C. (“Hochfeld Capital”), was sentenced today in Manhattan federal court to two years in prison in connection with an investment scheme in which he stole more than $2 million from investors. HOCHFELD pled guilty in January 2013 to one count of securities fraud and one count of wire fraud before U.S. District Judge Paul A. Crotty, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Berton Hochfeld scammed investors who trusted him out of more than $2 million and spent it in part on luxury items for himself. This Office will not tolerate those who seek to bilk their investors.”
According to the charging instruments in this case and statements made in open court and at the plea proceeding:
HOCHFELD was the Manager and organizer of Hochfeld Capital, a limited liability company incorporated in Delaware that, at various times, maintained an office in New York, New York. Hochfeld Capital, in turn, served as the General Partner of the Heppelwhite Fund, L.P. (the “Heppelwhite Fund”), a hedge fund that was formed to invest in publicly traded securities, mainly in the technology sector. In connection with the management of the Heppelwhite Fund, HOCHFELD made false representations to investors regarding their investments, and misappropriated their money.
For example, by December 2010, HOCHFELD was aware that Hochfeld Capital’s internal accounting for the Heppelwhite Fund reflected an inflated net asset value (“NAV”), as compared to the value reflected in the books of the prime broker where the fund’s assets were actually located. Despite his knowledge of the disparity, HOCHFELD caused monthly statements to be sent to Heppelwhite Fund investors that reflected the inflated NAV calculated by internal accounting records.
From April 2011 through October 2012, HOCHFELD also withdrew money from the Heppelwhite Fund for his own personal use, ultimately misappropriating more than $2 million. During this period, at HOCHFELD’s direction, monthly account statements were provided to Heppelwhite Fund investors that falsely represented the fund’s value by failing to account for the money that he had withdrawn. At a meeting in October 2012, HOCHFELD admitted to certain investors that he had taken more than $1 million from the Heppelwhite Fund, and that he spent portions of that money on antiques and vacations.
In addition to his prison term, HOCHFELD, 66, of Stamford, Connecticut, was sentenced to three years of supervised release. He was also ordered to forfeit $2,110,535.84.
Mr. Bharara praised the investigative work of the FBI. He also thanked the U.S. Securities and Exchange Commission for their assistance.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jillian Berman is in charge of the prosecution.
Former Federal Fugitive Sentenced in California<br /> for Nationwide Foreclosure ScamRead the Press Release
Glen Alan Ward, 48, a former Los Angeles resident who fled to Canada and was a federal fugitive for 12 years, was sentenced today to serve 132 months in prison for aggravated identity theft and bankruptcy fraud in connection with his leading role in a nearly 15-year foreclosure-rescue scam that fraudulently postponed foreclosure sales for more than 800 distressed homeowners.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California, U.S. Attorney for the Northern District of California Melinda Haag, Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office and Special Inspector General for the Troubled Asset Relief Program Christy Romero made the announcement.
Ward was sentenced by U.S. District Judge Dale S. Fischer in the Central District of California. In addition to his prison term, Ward was sentenced to serve three years of supervised release and ordered to pay approximately $60,000 in restitution.
Ward pleaded guilty on April 8, 2013, in connection with three separate sets of charges in the Central and Northern Districts of California, all stemming from Ward’s 15-year fraud. In 2000, Ward became a federal fugitive when he failed to appear in court after signing a plea agreement, which arose out of federal charges in 2000 in the Central District of California related to Ward’s early conduct in the scheme. In 2002, Ward was indicted on multiple counts of bankruptcy fraud in the Northern District of California for continuing the scheme in and around San Francisco. On Aug. 17, 2012, Ward was indicted on mail fraud, aggravated identity theft, and additional bankruptcy fraud counts in the Central District of California after fleeing to Canada and continuing his fraud from there. While in Canada, Ward recruited Frederic Alan Gladle, who was indicted in the Central District of California for bankruptcy fraud and identity theft in 2011, and was sentenced in 2012 on his guilty plea to 61 months in custody for engaging in similar conduct.
On April 5, 2012, Ward was arrested in Canada by the Royal Canadian Mounted Police and the Waterloo Regional Police Service based on a U.S. provisional arrest warrant. On Dec. 21, 2012, Ward was extradited to the United States to answer all three sets of charges.
According to the plea agreement, Ward led a scheme that solicited and recruited homeowners whose properties were in danger of imminent foreclosure. Ward promised to delay their foreclosures for as long as the homeowners could afford his $700 monthly fee. Once a homeowner paid the fee, Ward accessed a public bankruptcy database and retrieved the name of an individual debtor who recently filed bankruptcy. Ward admitted that he obtained copies of unsuspecting debtors’ bankruptcy petitions and directed his clients to execute, notarize and record a grant deed transferring generally a 1/100th fractional interest in their distressed home into the name of the debtor that Ward provided. Then, after stealing the debtor’s identity, Ward faxed a copy of the bankruptcy petition, the notarized grant deed and a cover letter to the homeowner’s lender or the lender’s representative, directing it to stop the impending foreclosure sale due to the bankruptcy.
Because bankruptcy filings give rise to automatic stays that protect debtors’ properties, the receipt of the bankruptcy petitions and deeds in the debtors’ names forced lenders to cancel foreclosure sales. The lenders, which included banks that received government funds under the Troubled Asset Relief Program (TARP), could not move forward to collect money that was owed to them until getting permission from the bankruptcy courts, thereby repeatedly delaying the lenders’ recovery of their money for months and even years. In addition, if a distressed homeowner wanted to complete a loan modification or short sale, they were left to the mercy of Ward to send them forged deeds, supposedly signed by the debtors, to re-unify their title as required by most lenders.
As part of the scheme, Ward delayed the foreclosure sales of approximately 824 distressed properties by using at least 414 bankruptcies filed in 26 judicial districts across the country. During that same period, Ward admitted to collecting from his clients who paid for his illegal foreclosure-delay services more than $1.2 million.
The investigation was conducted by the Office of the Special Inspector General for the Troubled Asset Relief Program and the FBI, which received substantial assistance from the U.S. Trustee’s Office. In addition, the Office of International Affairs of the Department of Justice, Canadian Waterloo Regional Police Service and Royal Canadian Mounted Police provided exceptional support and assistance in connection with Ward’s arrest and extradition.
This case was prosecuted by Assistant U.S. Attorney Evan Davis of the U.S. Attorney’s Office for the Central District of California with assistance from the Criminal Division’s Fraud Section. Assistant U.S. Attorney Jonathan Schmidt is prosecuting the charges in the Northern District of California, which were transferred to the Central District of California for entry of the guilty pleas.
This prosecution 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. Attorney’s offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed 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.
Former Detroit Public Schools Accountant, Teacher Found Guilty of Fraud and Money Laundering ChargesRead the Press Release
Sandra Campbell, 57 a former Detroit Public Schools contract accountant and School Board candidate, and her daughter, Domonique Campbell, 38, a Detroit Public Schools teacher, were convicted today by a federal jury in Detroit on charges of program fraud conspiracy, money laundering conspiracy and tax charges, following a five-week jury trial, United States Attorney Barbara L. McQuade announced today. The jury returned its verdict after only one and one half hours of deliberations.
McQuade was joined in the announcement by Special Agent in Charge Robert D. Foley, III and Special Agent in Charge, Erick Martinez, Internal Revenue Service, Criminal Investigation.
The evidence presented at trial established that between 2004 and 2008, Sandra Campbell and Domonique Campbell, obtained in excess of $530,000.00 from the Detroit Public Schools through a fraudulent scheme in which orders were placed with the Campbells’ sham company for books and educational materials never provided to the schools. Sandra Campbell and Domonique Campbell conspired to launder the fraud proceeds and to defraud the Internal Revenue Service and failed to report the money they fraudulently obtained from the Detroit Public Schools as income on their tax returns.
United States Attorney Barbara L. McQuade said, "Anyone who considers defrauding our schools should take note that we are scrutinizing records and conduct, and will prosecute those who steal funds intended to educate our children."
FBI Special Agent in Charge Robert D. Foley stated, "The FBI would like to thank all of our partners who continue to assist us in battling corruption. In particular, I would like to note the continued support of DPS Inspector General Van Marsh and his team. The actions of these subjects do nothing more than steal the opportunity for quality education from our children. Such actions cannot be tolerated and will be pursued by the FBI and its partners.”
IRS Special Agent in Charge Erick Martinez stated, “"Those who profit at the expense of our children and steal from our community will be held accountable for their greedy actions".The case was investigated by special agents of the FBI, IRS and Department of Education, Office of Inspector General, with the assistance of Detroit Public Schools, Office of Inspector General. The case was investigated and prosecuted by Assistant United States Attorneys J. Michael Buckley and Bruce Judge of the Public Corruption Unit.
Former Bellevue Developer Indicted for Tax Evasion and Social Security FraudRead the Press Release
A former Bellevue based developer and lender who spent millions on gambling, thoroughbred horse racing, private aircraft, country club fees and a Bellevue penthouse, has been indicted for tax evasion and social security number fraud. THOMAS R. HAZELRIGG, III, 67, of Rancho Mirage, California, will appear in U.S. District Court in Seattle today at 1:30 following his indictment for two counts of evading and defeating payment of tax, and two counts of Social Security number misuse.
The detailed indictment, returned by the grand jury last week, describes how HAZELRIGG first agreed to pay $533,454 in taxes owed for tax years 1989, 1990 and 1991 and then failed to pay the tax debt while living a lavish lifestyle that included private jets, multi-million dollar remodels, expensive artwork and high roller casino junkets. The Indictment also alleges that HAZELRIGG evaded payment of his taxes owed for 1994, for which he had filed a return showing tax owed, but for which he made no payments. The indictment alleges that between 1997 and 2007, HAZELRIGG illegally funneled income from his businesses into accounts that he controlled but that which he kept secret from the IRS and other creditors. HAZELRIGG used these accounts to pay for the multimillion dollar purchase and remodel of a Bellevue penthouse, two Chihuly glass chandeliers worth more than $460,000, more than one million dollars in chips at various casinos, country club memberships for himself and associates, the leasing of private jets, the use of a butler, and more than $160,000 on race horses.
The two counts of Social Security number misuse relate to HAZLERIGG opening bank accounts in 2009, using the Social Security number of his deceased father. HAZELRIGG allegedly used the number to hide the resources from the IRS.
The tax evasion counts are punishable by up to five years in prison. The misuse of Social Security number counts are also punishable by up to five years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI).
The case is being prosecuted by Assistant United States Attorneys Susan Loitz and Robert Westinghouse.
Foreign National Sentenced for Role in Drug Trafficking OrganizationRead the Press Release
Juan Miguel Mendez-Velasquez, 36, a citizen of Mexico who most recently resided in Mexico, was sentenced on August 2, 2013, following his conviction for Conspiracy to Distribute and Possess With the Intent to Distribute Cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Mendez-Velasquez had been charged on August 22, 2012, in an eleven count indictment charging a total of ten individuals with being members of a large drug trafficking organization. Mendez-Velasquez was sentenced to 57 months in prison, followed by two years of supervised release. Mendez-Velasquez was also ordered to pay a $100 special assessment and to forfeit $114,800.00 to the United States. The Court entered a Judicial Order of Removal, which requires him to be deported following the service of his sentence.
According to the Stipulation of Facts which was filed with the Court at the time of the plea, the organization charged in the Indictment was responsible for importing cocaine from Mexico into the United States, where it was taken to Salt Lake City, Utah. From Salt Lake City, the cocaine was transported by members of the conspiracy to the St. Louis Metropolitan area where it was distributed by various members of the organization, including some who operated within the Southern District of Illinois. Proceeds for the sales of the cocaine were then transported back to the leaders of the conspiracy in Salt Lake City.
Of the nine individuals named in the indictment with Mendez-Velasquez, six others have entered pleas of guilty, one has been arrested and is awaiting trial, and two are fugitives. Those not yet convicted are presumed innocent because an indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
Evidence in support of the indictment in this case was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), U.S. Marshal Service, the Granite City Police Department, Fairview Heights Police Department, the Collinsville Police Department, the St. Louis Metropolitan Police Department, the St. Louis County (Missouri) Police Department, the St. Charles County (Missouri) Sheriff=s Department, and the Nebraska State Patrol. This case is assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Fayette Co. Fugitive Pedophile Who Previously Failed to Appear for Sentencing on Child Pornography Charge Gets 10 Years in Federal PrisonRead the Press Release
BLUEFIELD, W.Va. – A Fayette County fugitive pedophile who failed to appear for a May 2012 sentencing hearing on a child pornography charge was sentenced today to the statutory maximum of 10 years in federal prison, announced U.S. Attorney Booth Goodwin. Brett David Bowyer, 34, of Scarbro, W.Va., previously pleaded guilty to possession of child pornography in October 2011. Bowyer’s sentencing was handed down today by Senior United States District Judge David A. Faber in Bluefield.
On September 17, 2010, Bowyer possessed on his computer more than 600 pictures and videos of children having sex or performing sexual acts. Bowyer received and shared child pornography using a peer-to-peer file sharing program called LimeWire, which allows Internet users to download files from other people’s computers around the world.
U.S. Attorney Goodwin said, “Cases involving the exploitation of innocent children are so critical. My office will continue to work diligently to make sure that pedophiles like Mr. Bowyer are locked up where they belong.”
Bowyer was originally scheduled to be sentenced on May 30, 2012 in Bluefield, but failed to appear as required by the conditions of his release. On June 12, 2013, Bowyer was arrested in Florida after being stopped for failing to change lanes for a Brevard County Sheriff’s deputy whose vehicle had its emergency lights flashing.
Bowyer was indicted on June 18 by a federal grand jury sitting in Huntington for failing to appear for his May 2012 sentencing hearing. He faces up to an additional five years in prison and a $250,000 fine if convicted.
The United States Marshals Service conducted the investigation. Assistant United States Attorney Lisa Johnston handled the prosecution.
This case was prosecuted as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Drug Dealing Brothers Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced brothers Harold Alexander Byrd, age 26, of Phoenix, Maryland, and Joseph Ibreham Byrd, age 34, of Owings Mills, Maryland, today each to 10 years in prison, followed by five years of supervised release, for possession with intent to distribute cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Chief James W. Johnson of the Baltimore County Police Department; and Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police.
According to the Byrds= plea agreements, search warrants executed on April 22, 2013, recovered over five kilograms of cocaine from each brother’s home, with a street value of approximately $150,000. Law enforcement recovered three handguns, one AK-47 (semi-automatic), and four sets of body armor from Harold Byrd’s residence. The brothers admitted they were co-conspirators and Joseph Byrd frequented his brother’s home and was aware that the firearms were stored there. Seventy-three black plastic containers used to conceal large quantities of marijuana during shipment from Arizona to Maryland were also recovered from Harold’s home. Both brothers also had fictitious drivers’ licenses in various names but bearing their photographs. On the same day, approximately 500 pounds of marijuana was seized from a third location in Baltimore, where both brothers were also arrested.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department and the Maryland Transportation Authority Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and Kenneth S. Clark, who prosecuted the case.
District Man Indicted in $3 Million Embezzlement Scheme-Defendant Allegedly Used Money for A House, Trips, Other Expenses-Read the Press Release
WASHINGTON - Howard E. Person, Jr., 35, of Washington, D.C., has been indicted for mail fraud and other federal offenses stemming from a $3 million embezzlement scheme in which he is accused of illegally obtaining and using his employer’s money for the purchase of a house, trips to Las Vegas and other locations, and other personal expenses.
The indictment, which was unsealed today in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr., Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Kathy A. Michalko, Special Agent in Charge, Washington Field Office, U.S. Secret Service.
Person was named in the 12-count indictment on July 30, 2013, charging him with mail fraud, access device fraud, interstate transportation of money taken by fraud, monetary transactions, and first-degree theft. The indictment also includes forfeiture allegations seeking all proceeds traceable to the scheme. Person pled not guilty to the charges today.
According to the indictment, Person had been the finance director of a small, locally owned company. The indictment alleges that from March 2008 to September 2011 he arranged to divert money from his employer’s bank account to another bank account which he exclusively controlled in order to embezzle money from the company.
The indictment alleges that Person opened this other, secret, bank account without the knowledge and permission of the owner. He also allegedly used false financial statements to conceal his theft from the owner. According to the indictment, Person caused the company’s clients to pay the secret account instead of the authorized account $6 million in money due and owing to the company. The indictment charges that Person then used about $3 million to keep the company afloat, and the other $3 million to pay his personal expenses, including purchasing his home in the 500 block of Florida Avenue NE, in an amount in excess of $340,000; paying for trips to Las Vegas, Atlantic City, Miami, the Dominican Republic, and Hawaii; transferring money into his personal bank account and into his side-line business account; funding parties and shows, and withdrawing over $55,000 in cash from ATMs and over $35,000 in debit card purchases at casinos in Las Vegas and Atlantic City.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Machen, Chief Lanier, and Special Agent in Charge Michalko expressed appreciation for the work performed by MPD detectives from the criminal investigation division - financial crimes section as well as by the Special Agents and financial analysts from the U.S. Secret Service. They also acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Criminal Investigator Juan Juarez, Paralegal Specialist Donna Galindo, Assistant U.S. Attorneys Christopher Kavanaugh and Anthony Saler, former Assistant U.S. Attorney Mary Chris Dobbie, and Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.
13-277Defendant Sentenced for Possession of Firearm Following Felony ConvictionsRead the Press Release
United States Attorney Kenyen Brown announces, Charles Derks of Mobile, has been sentenced to 30 months in prison for his conviction of being a felon in possession of firearms, a violation of Title 18, United States Code Section 922(g)(1). The term of imprisonment is to be followed by a three year term of supervised release.
Derks was previously convicted of being a felon in possession of a firearm in 2005, following state felony convictions for third-degree burglary and second-degree theft. By virtue of these convictions, and Derks’s resulting status as a convicted felon, he was and is prohibited from possessing firearms or ammunition.
This case was investigated by the Mobile Police Department. The case was prosecuted by Assistant U.S. Attorney Christopher B. Brinson on behalf of the United States Attorney’s Office for the Southern District of Alabama.
Clay County Sheriff Charged with WiretappingRead the Press Release
Sheriff Miles Slack Secretly Intercepted Communications from Ex-Wife’s Supreme Court Computer, Federal Prosecutors Say
CHARLESTON, W. Va. – U.S. Attorney Booth Goodwin today charged Clay County Sheriff Miles J. “Mike” Slack with illegal wiretapping, a federal felony that can carry up to five years in prison. In a criminal case filed this afternoon, Goodwin charged Sheriff Slack with surreptitiously installing a keystroke logger on a computer belonging to the Supreme Court of Appeals of West Virginia.
According to court documents, the compromised computer was a government computer assigned to Slack’s then wife, identified as “Victim L.S.,” who works in the office of a Clay County magistrate. Computers in the offices of circuit judges and magistrates throughout West Virginia are owned and maintained by the state’s Supreme Court, and are connected to a central Supreme Court computer network.
Sheriff Slack installed the hidden device in late April of this year, said Goodwin and Steven Ruby, the assistant federal prosecutor who signed today’s charge, and it remained in place for over two weeks, intercepting messages and data transmitted from L.S.’s Supreme Court computer.
Keystroke logging devices can be purchased from a number of Internet-based sellers. The devices, usually one to two inches long, are attached to a computer’s keyboard cable. Once installed, they can intercept everything typed on the keyboard, including email and information transmitted to Internet sites.
Because the devices are unobtrusive and normally hidden behind the computer targeted for surveillance, they can go undetected for long periods of time. Though small in size, some keystroke loggers can store two gigabytes of information, enough to record more than a billion keystrokes.
Slack served as a Clay County deputy sheriff for around 16 years. In early 2012, while acting as chief deputy for the Clay County Sheriff’s Department, Slack announced he was running for sheriff. Then-Sheriff Randy Holcomb, however, quickly demoted Slack to the rank of sergeant, a move that threatened Slack’s election bid. Under West Virginia civil service laws, deputy sheriffs other than the chief deputy may not run for public office. In order to remain in the race, Slack resigned from the department and became Chief of Police for Clay, West Virginia, the county seat of Clay County.
In the May 2012 primary election, Slack soundly defeated two other candidates for the Democratic nomination for sheriff, receiving nearly 78% of the vote. He ran unopposed in the November 2012 general election and took office January 1, 2013. Slack’s first projects as sheriff included expanding evening patrols and seeking funding for a new home confinement officer.
Slack was charged in a court filing known as an information, which ordinarily indicates that a defendant is cooperating with prosecutors. No hearing date has been set.
The case is being investigated by the Federal Bureau of Investigation and the West Virginia State Police, with assistance from the Supreme Court of Appeals of West Virginia. The prosecution is being handled by Steven Ruby and Haley Bunn, prosecutors in Goodwin’s office.
Note: The charge contained in an Information is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
Click here to view a copy of the information
Child Pornographer Sentenced to 30 Years in Federal PrisonRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court today, Senior United States District Judge W. Earl Britt sentenced BRUCE WAYNE LORETTE , 34, of Leland to 360 months imprisonment, followed by a lifetime of supervised release.
Mr. Walker stated, “The horror of the abuse in this case is unspeakable. The sentence Judge Britt delivered today sends just the message it should: the sexual abuse of the most vulnerable members of our community will not be tolerated.”
LORETTE was first charged in an 11-count Indictment filed on October 24, 2012 charging him with 10 counts of receiving child pornography and one count of possession. After further evidence was discovered, LORETTE was named in a Criminal Information filed on March 7, 2013 charging him with producing child pornography. On May 13 2013, LORETTE pled guilty to that charge.
According to the investigation, LORETTE was first detected by undercover police who found that he was offering child pornography over a peer-to-peer network. After executing a search warrant at his Leland residence and the commencement of forensic examination of his computer equipment, investigators learned that LORETTE was not merely downloading and offering child pornography for download, but that he was creating child pornography of his own by victimizing an infant.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Investigation of this case was led by the North Carolina State Bureau of Investigation and Federal Bureau of Investigation. Assistant United States Attorney Jay Exum prosecuted the case for the United States.
California Man Pleads Guilty to Federal Heroin Trafficking ChargeRead the Press Release
ALBUQUEQUE – Louie Villegas, 48, of Desert Hot Springs, Calif., pleaded guilty this morning to a federal heroin trafficking charge. Under the terms of his plea agreement, Villegas will be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court.
Villegas was arrested on April 18, 2013, at the Greyhound Bus Station in Albuquerque, N.M., after DEA agents found more than a kilogram of heroin concealed in inside the inner soles of his tennis shoes. He subsequently was indicted and charged with possession of heroin with intent to distribute.
During this morning’s proceedings, Villegas entered a guilty plea to the indictment and admitted that, while at the Greyhound bus station in Albuquerque on April 18, 2013, he had a consensual encounter with DEA agents and gave the agents permission to search him and his shoes for contraband. When Villegas handed his left shoe to the agents, it was abnormally heavy. Inside the inner sole of both shoes, the agents found approximately 1.3 kilograms of heroin.
Villegas has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Interdiction Unit of the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Lynn W.Y. Wang.
Attorney General Eric Holder Recognizes South Dakota Prosecutor for Outstanding Performance in Indian CountryRead the Press Release
Gregg Peterman, Supervisory Assistant U.S. Attorney in the District of South Dakota, has received national recognition for his work in Indian Country. Peterman was one of 154 members of the Department of Justice (DOJ) who were recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director H. Marshall Jarrett.
Peterman was honored with a 2013 Director’s Award for Outstanding Performance in Indian Country, one of the highest awards that can be bestowed upon an Assistant U.S. Attorney.
In a letter to Peterman, Attorney General Holder said the following: “In your 17 years of service to support Indian Country, your passion and energy as a prosecutor have made these communities better and safer places to live. You have accomplished this through handling some of the district’s most difficult cases ranging from violent homicides to child sexual abuse cases; through your involvement with working groups and committees; and by training law enforcement agencies on Indian Country issues. You have demonstrated the best of public service and deserve recognition for your commitment to justice.”Originally from Brooklyn, New York, Peterman joined the U.S. Attorney’s Office for the District of South Dakota in 1995. Shortly after joining the office, he showed an interest in working on Indian Country issues, and quickly displayed a passion and energy focused on these cases. Over the years he has handled some of the District’s toughest Indian Country matters, ranging from violent homicides to heart wrenching child sexual abuse cases. He has been involved in numerous national Indian Country working groups and committees, including The Attorney General’s Task Force on Domestic Violence in Indian Country. Peterman is a frequent lecturer on Indian Country issues at the DOJ training center in South Carolina and has provided law enforcement training to hundreds of Indian Country officers. He has co-authored two Indian Country articles for USA Book.
“Gregg Peterman has dedicated over 17 years of his career fighting to deliver justice for victims in Indian Country,” said Brendan Johnson, U.S. Attorney for the District of South Dakota. “Gregg’s compassion, coupled with his tenacity, knowledge, and familiarity with Indian Country, makes him an ideal choice for the Director’s Award. His talent and expertise are valuable tools as we continue our efforts to improve public safety on reservations, and help make the communities safer places to live, work, play, and raise a family.”
Peterman has served as a pathfinder for the nation by leading the first community prosecution project on the Pine Ridge Reservation that was implemented in 2010. Peterman embraced the challenge to have a stronger presence on the reservation, and he successfully created and strengthened relationships by getting out in the communities, working on cases with law enforcement, talking to victims, and steering investigations. The pilot program has proven to be successful in a number of areas and criminal prosecutions have increased.
“Each day the members of the U.S. Attorneys’ community go to work for the citizens of this country with one goal in mind – to do everything they can to protect the rights of all Americans,” said EOUSA Director Jarrett. “I am continually humbled by their resiliency, dedication, and unparalleled work ethic to accomplish this noble mission. Today’s awardees exemplify what it truly means to be a patriot and it is an honor to recognize them for their extraordinary service.”
Peterman was named the Supervisor of the U.S. Attorney’s Rapid City office in early 2012. U.S. Attorney Johnson honored Peterman with the Director’s Award on August 5, 2013.Annette Kendrick - Arraigned on Computer Intrusion ChargeRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today ANNETTE KENDRICK, 40, of Marietta, Georgia was arraigned before Magistrate Judge Marian W. Payson, pursuant to her being charged in a Criminal Complaint with intentionally causing damage to a protected computer domain in violation of Title 18, United States code, Section 1030(a)(5)(A). The charges carry a maximum penalty of 10 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Bradley E. Tyler stated that in April 2013, employees of Iberdrola, a company headquartered in Rochester, New York, reported that Iberdrola was the victim of a computer intrusion. In response to that report, law enforcement agents determined that on or about April 4, 2013, the defendant Kendrick, using the log in credentials of another individual, logged into Iberdrola’s computerized job application system, modified a job posting, modified questions on the posting, sent e-mails to agencies about the posting, and sent e-mails to job applicants saying they were no longer being considered for the position.
Magistrate Judge Payson set the next court appearance for the defendant Kendrick on September 12, 2013.
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.
Anchorage Drug Dealers conviceted by Jury of drug conspiracy and weapons chargesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two Anchorage men were convicted of federal drug and weapons charges last week.
Christopher Thomas Mejia, 24, and Jared Thomas Bowers, 23, both of Anchorage, Alaska, were tried before Chief U.S. District Court Judge Ralph R. Beistline in Anchorage, Alaska.
A federal jury of seven men and five women found Mejia and Bowers guilty of a drug trafficking conspiracy, attempted possession of heroin with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime.
According to Special Assistant U.S. Attorney Erin Bradley, who prosecuted the case, the evidence presented at trial established that Mejia and Bowers conspired to distribute approximately 97 grams of heroin. They supplied their co-defendant, Rhadames Marmolejos, Jr., with heroin on eight separate occasions, which Marmolejos then sold to an undercover agent working for the Drug Enforcement Administration. In February 2013, the United States Postal Service intercepted a package containing approximately two pounds of heroin. The investigation revealed that Mejia intended to purchase one pound of that heroin for approximately $30,000. Law enforcement arrested Mejia and Bowers as the two waited in a vehicle to purchase the heroin. The two were in possession of approximately $27,000 in United States currency and a loaded .45 caliber semi-automatic pistol. Mejia and Bowers are in custody pending sentencing.
Judge Beistline scheduled sentencing for Mejia on October 15, 2013, at 9:00 a.m. Bowers is scheduled to be sentenced on October 16, 2013, at 10:00 a.m. Marmolejos, who pled guilty to drug trafficking conspiracy in a separate proceeding, is scheduled to be sentenced on October 3, 2013, at 10:00 a.m. Based on the charges of conviction, Mejia and Bowers face mandatory minimum sentences of ten years in prison, a fine of five million dollars, or both. Marmolejos faces a mandatory minimum sentence of five years in prison, a fine of five million dollars, or both.
Ms. Loeffler commends the Drug Enforcement Administration, the Alaska State Troopers and the United States Postal Service for the investigation leading to the successful prosecution of Mejia, Bowers and Marmolejos. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office who is funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.
Saturday 3 August 2013
Former Illinois Department of Public Health Chief of Staff Charged with Bribery and Taking Kickbacks, Mail Fraud, Obstruction of JusticeRead the Press Release
To Date: 13 Defendants Charged in Ongoing State Grant / Contract Fraud Investigation
SPRINGFIELD, Ill. – An indictment returned yesterday by a grand jury in Springfield charges Quinshaunta R. Golden, former Chief of Staff for the Illinois Department of Public Health, with bribery and taking kickbacks of approximately $433,000 in grant and contract funds, mail fraud, and obstructing justice in a federal investigation. The indictment alleges that from about July 2007 to October 2008, Golden received kickbacks related to $13 million in grant and contract funds awarded at Golden’s direction to various entities. Further, the indictment alleges that from about February to early April 2012, Golden engaged in conduct to obstruct and impede a grand jury investigation in the Central District of Illinois.
The U.S. Attorney for the Central District of Illinois, Jim Lewis, announced the indictment today, along with Assistant U.S. Attorney Timothy A. Bass, who is representing the government in the prosecution, and representatives of the investigative agencies that participate in the U.S. Attorney’s Public Corruption Task Force: Tony Gomez, Postal Inspector in Charge, U.S. Postal Inspection Service, Chicago Division; James Lee, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, Chicago Field Office; and Jim Burns, Inspector General, Illinois Secretary of State Office of Inspector General.
Golden is the 13th defendant to be charged, to date, as a result of the ongoing task force investigation of state grant/contract fraud. Charges filed against these 13 defendants collectively allege the misuse of more than $16 million in taxpayers’ money intended to provide a wide range of healthcare, student assistance, and job training programs and services to disadvantaged citizens. These include programs to promote wellness and improve healthcare; to prepare for major health and natural disaster emergencies; to provide healthcare advocacy programs and student job training assistance; to provide skill training and apprenticeships; and to provide statewide HIV prevention plans and HIV/AIDS facilities to assist African Americans. See the attached summary table for the complete list of defendants charged and case status.
According to the indictment, Golden, 44, of Homewood, Ill., served as Chief of Staff at the Ill. Department of Public Health from 2003 to early 2008. In that capacity, Golden had significant control over the agency’s offices and had certain approval authority and control over the awarding of grants and contracts. In 2008, Golden left the Department of Public Health and took a position at the University of Chicago Medical Center.
The indictment alleges that, as part of the scheme, Golden used her position at the Department of Public Health to cause the agency to issue approximately $11 million in grant funds, for programs relating to breast, cervical and prostate cancer, HIV/AIDS, and emergency preparedness, to three not-for-profit organizations: Broadcast Ministers Alliance, Access Wellness and Racial Equity, and the Medical Health Association. These organizations were then controlled by Leon Dingle, Jr., and his for-profit corporation known as Advance Health, Social and Educational Associates, Inc. Dingle, his wife, and two associates were indicted in October 2012; trial is scheduled for December 2013. Further, Golden allegedly caused approximately $2 million in contract funds to be paid by the Department of Public Health to an entity referred to in the indictment as Security Firm A for services related to the Identified Offender Program to conduct background checks and interviews of Illinois nursing home residents.
As part of the scheme, Golden allegedly caused a person, identified as Individual A in the indictment, to be hired as a paid consultant for Leon Dingle, Jr., and the three not-for-profit entities, as well as a paid consultant for Security Firm A. As a result, approximately $772,500 in grant funds, originally disbursed to the three not-for-profit entities, was paid to Individual A during a nine-month period from July 2007 to April 2008, including approximately $407,500 paid to Individual A in April 2008, at the end of Golden’s tenure at the Department of Public Health.
The indictment alleges that Golden required, as a condition of Individual A receiving grant funds, that Individual A pay Golden one-half of whatever Individual A received, less any funds to be withheld for payment of taxes, which were never paid. From about July 2007 to April 2008, Individual A made cash payments to Golden in amounts ranging from $5,000 to as much as $70,000, totaling approximately $323,500.
Under the Identified Offender Program, the indictment alleges that Golden required Individual A to pay Golden approximately $35 to $40 for each background investigation performed by Security Firm A. From 2006 to 2009, Individual A received approximately $485,000 in funds from Security Firm A’s contracts with DPH, and during 2007 and 2008, Individual A allegedly paid Golden approximately $109,500.
In addition to the charges of bribery and taking kickbacks and mail fraud (five counts), the indictment charges Golden with one count of obstruction of justice. Golden allegedly met with Individual A on multiple occasions and falsely denied receiving improper kickback payments from A. Further, the indictment alleges that Golden encouraged and instructed Individual A not to tell the truth concerning the kickback scheme and to conceal the truth from Individual A’s attorney, and to create a false story by saying that Individual A used the grant and contract funds for gambling and other personal expenses.
The indictment includes one count of criminal forfeiture seeking forfeiture of property Golden derived from any proceeds obtained as a result of the alleged offenses, as well as a money judgment in an undetermined amount representing the net proceeds obtained as a result of the alleged offenses.
If convicted, for the offense of bribery and theft concerning programs receiving federal funds, the statutory penalty is up to 10 years in prison and a fine of up to $250,000. For each count of mail fraud (five counts) and for the single count of obstruction of justice, the statutory penalty is up to 20 years in prison and fines of up to $250,000 as to each count. The defendant may also be ordered to pay restitution to victims of the alleged offenses.
The U.S. Clerk of the Court will issue a summons to Golden for her initial appearance date, scheduled for Aug. 23, 2013, at 11:00 a.m., before U.S. Magistrate Judge Byron G. Cudmore in federal court in Springfield.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Individuals who wish to provide information to law enforcement regarding matters of public corruption are urged to call the U.S. Attorney’s Office at 217-492-4450.
Friday 2 August 2013
Westlake Man Sentenced to More Than 21 Years in Prison for Meth and Gun Possession ChargesRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced Anthony Frederick “Tony” Giaimis, 48, of Westlake, La., was sentenced Thursday by U.S. District Judge Patricia Minaldi, to 262 months in prison and five years of supervised release for conspiring to distribute methamphetamine, 262 months in prison and four years of supervised release for possessing with intent to distribute methamphetamine, and 262 months in prison and six years of supervised release for felony weapon possession. He will serve prison and supervised release terms for all three counts concurrently.
On April 10, 2013, after a three-day trial, a jury found Giaimis guilty of conspiring to distribute 50 grams of methamphetamine, possession of methamphetamine with intent to distribute, and a felon in possession of 14 firearms. According to witness testimony and evidence presented at trial, during the dates of the conspiracy, Giaimis obtained more than 80 ounces of methamphetamine from two men in the Houston area, which he sold to people living in and around Calcasieu Parish. On January 6, 2012, police found 14 firearms during a search of the marina where Giaimis was living, the Bridge Point Yacht club, which is owned by his mother. Giaimis had been previously convicted of a felony in June of 2011 in the 253rd District Court of Texas in Chambers County for possession with intent to deliver more than 200 grams of methamphetamine.
Justin W. Brewer, 42, and Ricky Martinez, 43, both of Houston, Texas, were also charged in the same indictment with Giaimis in August 2012. Brewer was sentenced on July 25, 2013 by Judge Minaldi, to 60 months in prison and five years of supervised release for possession with intent to distribute more than 50 grams of methamphetamine. According to evidence presented at Brewer’s guilty plea, he was arrested on December 28, 2011, after a Westlake police officer found 51.1 grams of pure methamphetamine in the trunk of his car. An informant told authorities that Brewer was in the Westlake area and was transporting a large quantity of methamphetamine. After the officer pulled Brewer over for a traffic violation, the officer found a drug smoking pipe and other drug paraphernalia in the console of the car, and a box containing methamphetamine in the trunk. He pleaded guilty on April 8, 2013.
Martinez is scheduled for a change of plea hearing on August 7, 2013. He is charged with one count of conspiracy to distribute more than 50 grams of methamphetamine and one count of possession of more than 50 grams of methamphetamine with intent to distribute.
“It took the work of police, sheriff’s deputies, and federal agents, along with witnesses to bring the defendants in this drug distribution operation to justice,” Finley stated. “I want to thank all of those who put their time and lives on the line to remove harmful and illegal drugs from our streets.”
The Westlake Police Department, Calcasieu Parish Sheriff’s Office, Lake Charles Police Department, FBI-Safe Streets Task Force, Combined Anti-drug Team (CAT) Task Force, and the DEA Laboratory conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel is prosecuting the case.Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Adam Snyder, 28, of Warsaw, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of possession of child pornography. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation.Sentencing has been set for 11/6/13. This charge was filed as a result of an investigation by United States Secret Service.This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
Kandi Biggins, 43, of Spencerville, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of bank fraud. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 10/31/13.This charge was filed as a result of an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
Thomas C. Touhey, 55, of Walkerton, Indiana, pled guilty before District Judge District Judge Robert L. Miller, Jr. to the felony offense of unlawful transport of firearms. Sentencing has been set for 11/6/2013. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Abigail Marin-Flores, 41, of Ligonier, Indiana, was sentenced by District Judge Jon E. DeGuilio to time served after pleading guilty to the felony offense of unlawful re-entry into the United States after deportation.According to documents filed in this case, on February 25, 2012, Marin-Flores was deported to Mexico at Laredo, Texas, after having been found in the United States without having been properly admitted. The defendant was arrested in Elkhart County, Indiana, in April of 2013 for identity theft and forgery charges after her illegal re-entry. This case was the result of an investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Marquis Broadway, 19, of South Bend, Indiana, was sentenced by District Judge Jon E. DeGuilio to 162 months imprisonment and 3 years of supervised release after pleading guilty to the felony offenses of carjacking and carrying a firearm in furtherance of a crime of violence.According to documents filed in this case, in July 2011 Broadway used a handgun to demand and steal a vehicle.In August 2011 Broadway was stopped and arrested in the stolen vehicle.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the South Bend Police Department.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Pablo Bueno III, 25, of South Bend, Indiana, was sentenced by District Judge Jon E. DeGuilio to 27 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed in this case, Bueno went to Midwest Gun and Range with two other people for the purpose of target shooting. Ammunition was purchased for several firearms. During the target shooting, Bueno handled all firearms that were rented and brought to the range. He signed a document at the desk indicating he was not a convicted felon. However, Bueno had a prior conviction for attempted residential entry and was sentenced to 15 months imprisonment. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney William Grimmer.
Scott Reahard, 46, of Wabash, Indiana, was sentenced by District Judge Robert L. Miller, Jr. to 120 months imprisonment, $5000.00 in restitution and 5 years of supervised release after pleading guilty to the felony offense of possession of child pornography.According to documents filed this case, Reahard possessed a laptop computer and media which contained digital images that depicted child pornography.Reahard admitted to possessing over 600 images, some of which portrayed minors who had not attained the age of 12 years.This case was the result of an investigation by United States Marshal’s Service and the Indiana State Police.This case was prosecuted by Assistant United States Attorney John Maciejczyk.
Robert Pulliam, 52, of New Carlisle, Indiana, was sentenced by District Judge District Judge Robert L. Miller, Jr. to time served and 2 years supervised release after pleading guilty to the felony offense of manufacturing marijuana.According to documents filed in this case, Pulliam had a small grow operation in the home in which he lived alone. He also had 22 firearms of various types and hundreds of rounds of ammunition that he kept in an unlocked gun safe next to the grow room. This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Tenando Osborne, 39, of Gary, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offense of possession of a firearm by a convicted felon.Sentencing has been set for 10/30/13.This charge was filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Gary Police Department.This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
Antonio DuPree Collins, 37, of Merrillville, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offense of possession of a firearm by a convicted felon.This charge was filed as a result of an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
Brian Washington, 26, of Gary, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offenses of distribution of crack cocaine and possession of a firearm in furtherance of a drug trafficking crime.These charges were filed as a result of an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Gabriel Jalomos, 25, of Chicago, Illinois a defendant in the case US v Vargas et al., was sentenced by Senior District Judge Rudy Lozano to 240 months imprisonment and 5 years of supervised release after pleading guilty to conspiracy to participate in racketeering activity, and in a separate matter, conspiracy to possess with the intent to distribute and distribution of cocaine and marijuana, and the robbery of a 7-Eleven store in Hammond, Indiana.According to the indictment charging racketeering, Jalomos is a member of the Latin Kings, which is a nationwide gang that originated in Chicago and has branched out throughout the United States, including to Texas. The indictment also alleged that the Latin Kings gang was responsible for at least 19 murders in the Chicago/Northwest Indiana area and Big Spring, Texas. These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Drug Enforcement Administration; Federal Bureau of Investigation; the U.S. Immigration and Custom Office of Homeland Security Investigations; the National Gang Targeting, Enforcement & Coordination Center; the National Gang Intelligence Center; the Chicago Police Department; the East Chicago Police Department; the Griffith Police Department; the Hammond Police Department; the Highland Police Department; and the Houston Police Department.The investigation of the Chicago Police Department officers was conducted by Chicago City Public Corruption Task Force, a Chicago Police Department- Internal Affairs and FBI - Chicago law enforcement initiative.This case is being prosecuted by Assistant United States Attorney David J. Nozick, and Joseph A. Cooley, Trial Attorney, United States Department of Justice - Organized Crime and Gang Section.
Bradley Jefferson, 24, of East Chicago, Indiana, was sentenced by Magistrate Judge Paul Cherry to 6 months of probation after pleading guilty to the felony offense of possession of a weapon within a National Park.This case was the result of an investigation by the National Park Service-Indiana Dunes.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Cortez Humphrey, 38, of University Park, Illinois, was sentenced by Senior District Judge Rudy Lozano to 168 months imprisonment and 5 years of supervised release after pleading guilty to the felony offense of conspiracy to possess with the intent to distribute heroin.According to documents filed by the government in this case, Humphrey was charged along with eight others with participation in a heroin ring.Humphrey admitted to being a mid-level supplier of heroin and to regularly fronting heroin to co-conspirators, who paid him after selling the heroin to others in and around the Newton County area.This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorneys Jennifer Chang-Adiga and Jacqueline Jacobs.
Willie G. Flowers, 32, of Gary, Indiana, was sentenced by Senior District Judge James Moody to 46 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed by the government in this case, East Chicago Police Department Officers saw Flowers, who was walking towards them, place an item near a garbage dumpster. That item was recovered and found to be a .38 caliber revolver loaded with six (6) rounds of ammunition.Flowers has prior felony convictions for possession of cocaine and battery on a police officer.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Chicago Police Department.This case was prosecuted by Assistant United States Attorney Joshua Kolar.
Shawn Pitts, 42, of McKinney, Texas, a former East Chicago Police Officer from 1997 to 2011, was sentenced by Senior District Judge Rudy Lozano to 8 months of home detention and 2 years of supervised release after pleading guilty to the felony offense of mail fraud.Pitts was caught “double-dipping”.Pitts would claim to be working two jobs at the same time on many days. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Gary Bell.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Gerardo Martinez-Gaston, 42, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger B. Cosbey to the felony offense of conspiracy to distribute and possess with the intent to distribute cocaine. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This investigation was conducted by the FBI Fort Wayne Safe Streets Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Fort Wayne Safe Streets Task Force is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department, and Fort Wayne Police Department. The New Haven Police Department, Steuben County Sheriff's Department, Elkhart County Interdiction and Covert Enforcement Unit, South Bend Police Department, and IMAGE Drug Task Force assisted with this investigation. This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
Joseph R Topp, 20, of Angola, Indiana, pled guilty before Magistrate Judge Roger B. Cosbey to the felony offense of distribution of child pornography. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation Cyber Crime Task Force.This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Brenna Underwood, 27, of Fort Wayne, Indiana was sentenced by District Judge Theresa L. Springmann to 1 year of probation after pleading guilty to the felony offense of maintaining a drug involved premises.According to documents filed in this case, Underwood managed a building in Fort Wayne for the use and manufacture of crack cocaine. This case was the result of an investigation by the Federal Bureau of Investigation and the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Anthony Geller.
James Rogers, 29, of Fort Wayne, Indiana, was sentenced by District Judge Theresa Springmann to 46 months of imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon. According to documents filed in this case, Rogers was convicted in 2003 for distribution of crack cocaine. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Lovita Morris-King.
Ku-La Lwin, 19, of Fort Wayne, Indiana, was sentenced by District Judge Theresa Springmann to 24 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of receipt and possession of a non-registered short barreled shotgun. According to documents filed in this case, Lwin was in possession of a New England 12 gauge sawed off shotgun with both the barrel and stock illegally modified.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Tina Nommay.
Leonard Riley, 21, of Fort Wayne, Indiana, was sentenced by District Judge Theresa Springmann to 21 months of imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed in this case, Riley was arrested while in possession of a handgun and had been previously convicted of auto theft.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Lovita Morris-King.
Waubay Man Found Guilty of Murdering DaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that Mario Contreras, age 35, of Waubay, South Dakota, was convicted of Second Degree Murder and Assault Resulting in Serious Bodily Injury as a result of a federal jury trial held in Sioux Falls, South Dakota.
The charges carry a maximum penalty of life imprisonment, a $250,000 fine, or both; 5 years of supervised release; and a $100 special assessment. The murder charge carries a mandatory minimum sentence of 30 years in prison. Contreras was indicted by a federal grand jury for the charges on August 14, 2012.
The victim was born on December 31, 2009, and was murdered by her father on January 9, 2012, just after she turned 2 years old. The victim’s mother and father were never married and were no longer close. The defendant was not very involved in the victims’ first year and a half of her life. On January 4, 2012, the victim’s mother asked Contreras if he could watch her for a few days. Contreras had custody of the victim from January 4th through January 9th, the date of death.
Contreras told investigators that on January 9th his daughter was having a cup of water and a banana and he left the room. He said that is when she fell off the chair and sustained the injuries that cased her death.
The Assistant Medical Examiner of Ramsey County, Minnesota, who performed the autopsy, discovered 18 round bluish-colored contusions on four sides of the victim’s head, indicative of blunt force trauma. He concluded that the multiple contusions and resulting subdural hematoma could not have been caused by a single fall from a chair and that the cause of death was a homicide. Another government expert on child abuse also concluded that the injuries were inconsistent with falling from a chair or table. An additional expert for the government determined that there were small hemorrhages to the retinas and concluded that the child was beaten. Two government experts testified that the chances of such a short fall causing death were “one in a million.”
The trial commenced on Tuesday morning, July 30, and concluded Thursday evening, August 1. After approximately two and a half hours of deliberation, the jury returned a verdict of guilty of Second Degree Murder and guilty of Assault Resulting in Serious Bodily Injury.
This case was investigated by the Federal Bureau of Investigation, the Sisseton-Wahpeton Tribal Law Enforcement Services, and the Bureau of Indian Affairs. The case was prosecuted by Assistant U.S. Attorneys Thomas J. Wright and Jay P. Miller. A presentence investigation was ordered and a sentencing date is set for November 2013.
The defendant was remanded to the custody of the U.S. Marshals Service.
Waterloo Man Sentenced to over 21 Years for Distributing and Possessing Child PornographyRead the Press Release
A man who distributed and possessed child pornography was sentenced July 31, 2013, to over twenty-one years in federal prison.
Charles Adkins, age 46, of Waterloo, Iowa, received the sentence after a March 4, 2013, guilty plea to one count of distribution of child pornography and one count of possession of child pornography. At the guilty plea, Adkins admitted that he used the Internet to distribute child pornography and that he possessed child pornography on a laptop computer.Adkins was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Adkins was sentenced to 262 months’ imprisonment and fined $10,000. A special assessment of $200 was imposed, and Adkins must also serve a ten-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Black Hawk County Sheriff’s Office, the Waterloo Police Department, the U.S. Postal Inspection Service, Homeland Security Investigations, and the Pensacola, Florida, Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-2034.
Walthill Man Sentenced for AssaultRead the Press Release
United States Attorney Deborah R. Gilg announced that Mark Phillips, age 60 of Walthill, Nebraska, was sentenced in the United States District Court in Omaha for Assault with a Dangerous Weapon. The Honorable Lyle E. Strom, Senior Judge, sentenced Phillips to 33 months of imprisonment. There is no parole in the federal system. After his release from prison Phillips will begin a 3 year term of supervised release.
On September 21, 2012, Phillips stabbed his adult son in the chest with a kitchen knife. The stabbing occurred within the family home in Walthill. The victim was treated for a 3 centimeter wound and released. Federal jurisdiction was based upon Phillips status as a Native American and the scene of the crime being within the Omaha Indian Reservation.
United States Attorney Deborah R. Gilg expressed her appreciation to the Omaha Tribal Police Department and the FBI for their investigation of this matter.
Ventura Man Sentenced to Ten Years for Possessing Child PornographyRead the Press Release
A man who possessed child pornography was sentenced August 1, 2013, to ten years in federal prison.
Brandon Phinney, age 28, of Ventura, Iowa, received the sentence after an April 1, 2013, guilty plea to one count of possession of child pornography. At the guilty plea, Phinney admitted that he possessed child pornography on his computer.Phinney was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Phinney was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed, and Phinney must also serve an eight-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Clear Lake Police Department, the Mason City Police Department, and the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-3005.
Union County Man Sentenced to Four Years in Prison for Possession of Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
Todd R. German, 51, of Richwood, Ohio was sentenced in U.S. District Court to 48 months in prison for possessing more than 10,000 images and 200 videos of child pornography. German was a fire service instructor at the Delaware Career Center.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI) and Delaware County Sheriff Russell L. Martin announced the sentence imposed today by Senior U.S. District Judge Peter C. Economus.
According to court documents, German left his job at the Delaware Career Center in March 2012. The day after he left, another employee found a thumb drive in German’s desk, placed it in a computer and found hundreds of images of child pornography. The employee contacted school officials who called the Delaware County Sheriff’s Office.
In April 2012, investigators executed a search warrant at German’s residence and found an external drive connected to his computer. A forensic examination of the external drive yielded more than 10,000 images and 222 videos of suspected child pornography. The investigation determined that the victims were from at least 17 different states and 7 different countries. German pleaded guilty in March, 2013 to one count of possession of child pornography.
“He basically had the American dream in every aspect of his life -- a long marriage, children, grandchildren, health, a meaningful career, respect of community, home ownership, and material possessions,” Assistant U.S. Attorney Deborah A. Solove wrote in a memorandum filed with the court prior to sentencing. “Although he has lost much of that through his actions that led to this case, he appears to be working on the child pornography issues and says he is grateful to have the opportunity to try address these issues that have troubled him throughout his life.”
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the investigation by FBI agents and Sheriff’s detectives, as well as Assistant U.S. Attorney Deborah Solove, who prosecuted the case.
Two South Dakota Men Charged with Federal Child Exploitation OffensesRead the Press Release
Mensur Malik and Salim Issa, both age 22, of Sioux Falls, South Dakota, have been indicted on federal child exploitation charges. The charges are contained in an Indictment unsealed July 17, 2013, in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about July 28, 2012, Malik and Issa knowingly traveled across a state line for the purpose of engaging in illicit sexual conduct. Under federal law, illicit sexual conduct involves sex acts with minors under certain circumstances. The Indictment also alleges that, on or about July 29, 2012, Malik transported a minor across a state line with the intent to engage in criminal sexual activity.
If convicted on all charges, Malik faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $500,000 fine, a $200 special assessment, and at least 5 years and up to life on supervised release following any imprisonment. If convicted, Issa faces a possible maximum sentence of 30 years’ imprisonment, a $250,000 fine, a $100 special assessment, and at least 5 years and up to life on supervised release following any imprisonment.
Malik and Issa appeared for a detention hearing on July 31, 2013, in federal court in Cedar Rapids and were held without bond. Their next appearance for trial is set for September 30, 2013.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Clear Lake, Iowa, Police Department and the Sioux Falls, South Dakota, Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-3024.
Two Sentenced in New York State for Dumping Thousands of Tons of Asbestos in Violation of the Clean Water ActRead the Press Release
Two individuals, Donald Torriero and Julius DeSimone, were sentenced in federal court in Utica, N.Y., for illegally dumping thousands of tons of asbestos-contaminated construction debris on a 28-acre piece of property on the Mohawk River in upstate New York, the Justice Department announced.
U.S. District Judge David N. Hurd sentenced Torriero to serve 36 months in prison followed by three years of supervised release. Torriero was immediately remanded into custody of the U.S. Marshals. DeSimone was sentenced to five years’ probation, including six months of home confinement. Both were ordered to pay $492,000 in restitution for, among other things, cleanup expenses at the site.
The two pleaded guilty to conspiring to violate the Clean Water Act, the Superfund statute, wire fraud and to defrauding the United States. In addition, Torriero pleaded guilty to substantive wire fraud charges, and DeSimone was convicted of making false statements to law enforcement in connection with a fabricated "permit letter" the conspirators created and used to dump at the site.
According to the evidence, Torriero, DeSimone and others conspired to fill in the entire property over the course of five years with pulverized construction and demolition debris that was processed at New Jersey solid waste management facilities and then transported to open property in Frankfort, N.Y. The plot was uncovered by law enforcement just months after the operation began, but not before the conspirators had already dumped at least 400 truckloads of debris at the site. Much of the material that was dumped was placed in and around waters of the United States and some of the material was found to be contaminated with asbestos. The conspirators then concealed the illegal dumping and recruited others to join in the illegal dumping by fabricating a New York State Department of Environmental Conservation (DEC) permit and forged the name of a DEC official on the fraudulent permit.
“Torriero and DeSimone endangered the health of both their fellow citizens and sensitive wetlands by violating numerous laws meant to ensure the proper disposal of toxic materials. They also committed other criminal acts in their attempts to cover up their misdeeds,” stated Acting Assistant Attorney General Robert Dreher of the Justice Department’s Environment and Natural Resources Division. “Holding these men responsible for their criminal activities will serve as notice to others involved in similar schemes that the Justice Department will not tolerate such flagrant disregard for the law and the environment.”
“Asbestos can cause cancer and other serious respiratory diseases; there is no safe level of exposure to it,” said Vernesa Jones-Allen, Acting Special Agent in Charge of EPA’s Criminal Investigation Division in New York. “The defendants in this case conspired to illegally dispose asbestos containing material. This case demonstrates that the American people will not tolerate those who make money by breaking the law and damage the environment.”
“This case demonstrates the commitment of local, state and federal law enforcement agencies to work together to protect the environment and the health of the citizens we serve,” said Richard S. Hartunian, U.S. Attorney for the Northern District of New York. “I commend all the law enforcement officers involved in this case for their hard work in bringing Torriero and DeSimone to justice.”
“The disposal of hazardous materials is closely regulated in New York State to protect public health and our environment,” said New York State Department of Environmental Conservation (DEC) Commissioner Joe Martens. “The forgery of permits by the defendants in this case was a blatant and potentially dangerous criminal act that undermined the integrity of the permit system. I applaud the collaborative work of DEC investigators and partners to halt this illegal dumping, apprehend the perpetrators, and bring them to justice.”
This case is related to the guilty pleas and sentencings associated with Eagle Recycling, Mazza & Sons Inc., Dominick Mazza, Cross Nicastro and Jon Deck. Mr. Deck is the last remaining individual awaiting sentencing.
This case was investigated by the New York State Environmental Conservation Police, Bureau of Environmental Crimes, EPA’s Criminal Investigation Division, Internal Revenue Service, New Jersey State Police Office of Business Integrity Unit, New Jersey Department of Environmental Protection, and Ohio Department of Environmental Protection. The case is being prosecuted by Assistant U.S. Attorney Craig A. Benedict of the Northern District of New York, and Trial Attorneys Todd W. Gleason and Gary Donner of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.
Three Men Sentenced to Lengthy Prison Terms for Conspiring to Distribute Heroin in the Washington, D.C. Metropolitan AreaRead the Press Release
-Defendants Conspired to Bring Shipments Here from New York-
WASHINGTON – Three men were sentenced today to lengthy prison terms for conspiring to distribute large quantities of heroin in the Washington, D.C., metropolitan area. They were arrested in 2012, following a nine-month investigation by law enforcement.
The sentences were announced by U.S. Attorney Ronald C. Machen Jr., Karl C. Colder, Special Agent in Charge of the Washington Division of the Drug Enforcement Administration, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Thaxton Young, Jr., 46, of Columbia, Md., Gerry Duane Burnett, 42, of Washington, D.C., and Jesse McLester Young, Jr., 42, of Mount Vernon, N.Y., were found guilty in May 2013 following a trial in the U.S. District Court of the District of Columbia. In addition to the conspiracy charge, Burnett was found guilty of possession with intent to distribute heroin and marijuana. The Honorable Beryl A. Howell sentenced the defendants today.
Thaxton Young, Jr. was sentenced to 11 years and three months in prison. Burnett was sentenced to 12 years and seven months in prison, and Jesse Young, Jr. was sentenced to 11 years and three months of incarceration. Each defendant also was ordered to pay an $89,000 forfeiture judgment for the gross receipts from the heroin distributed in the conspiracy.
Thaxton Young, Jr., Burnett and Jesse Young, Jr. were indicted in 2012, following an investigation by the DEA into people suspected of acting as wholesale distributors of heroin in the metropolitan area. The investigation determined that from May 2011 through March 2012, the defendants and others maintained a drug trafficking organization that supplied distribution amounts of heroin to dealers in the District of Columbia and Maryland.
The investigation revealed that Thaxton Young, Jr. and another conspirator obtained large quantities of heroin from his cousin and co-defendant Jesse Young, Jr. in the Bronx, New York area, which they transported back to the Washington, D.C. area for redistribution to wholesale traffickers, including Burnett.
Investigators seized over 170 grams of heroin during the investigation, along with over $7,000 in cash, along with jewelry valued at over $25,000.
In announcing the sentences, U.S. Attorney Machen, Special Agent in Charge Colder, and Chief Lanier commended the work of the agents, officers and investigators from the DEA and MPD who investigated the case. They also thanked the Maryland State Police, which provided assistance. They cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Jeremy Stoller and Regan Gibson, and Litigation Support Specialist Joshua Ellen.
Finally, they acknowledged the work of Assistant U.S. Attorneys Opher Shweiki, Steven B. Wasserman and Magdalena Acevedo, of the Violent Crime and Narcotics Trafficking Section, who prosecuted the case.
13-274Tax on the Run Owners and Others Plead Guilty in Tax Refund Scheme Involving Misuse of First-Time Home Buyer Tax CreditRead the Press Release
Impoverished Taxpayers Were Recruited to
Allow Their Names and SSNs to be Used in Filing Fraudulent ReturnsDALLAS — Four defendants, whose trial was to begin this Monday on charges related to a tax refund conspiracy they were involved in regarding the misuse of the First-Time Home Buyer Tax Credit, pleaded guilty this afternoon before U.S. District Judge Jorge A. Solis. The four have been on bond since their arrest in January 2012 by special agents with Internal Revenue Service (IRS) – Criminal Investigation. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Jason Phread Altman, Emanuel James Harrison and Fread Jamille Jenkins each pleaded guilty to one count of conspiracy to file false claims, which carries a maximum statutory penalty of 10 years in federal prison. However, according to the plea agreements filed today, the parties agree that 84 months is the appropriate custody disposition of each case. If the Court accepts the plea agreements, this provision is binding upon the Court.
Also today, Jarrod Phread Altman pleaded guilty to one count of false, fictitious or fraudulent claims. He faces a maximum statutory penalty of five years in federal prison. The two other defendants charged in the case, Rickel Shine and Billy Hamilton, each pleaded guilty, in May 2012 and February 2013, respectively, to one count of conspiracy to file false claims.
Each count of conviction also carries up to a $250,000 fine and restitution. In addition, according to administrative forfeiture settlement agreements filed, Jason and Jarrod Altman must forfeit two luxury vehicles that were seized by the government.
According to the factual resumes filed in the case, Jason and Jarrod Altman, along with Harrison, owned and operated a tax preparation business, Tax On The Run, located in Dallas. Jenkins worked as office manager for the business, while Shine and Hamilton worked as intermediaries and recruited clients on behalf of the owners.
Beginning in March 2009, Jason and Jarrod Altman, Jenkins, Harrison, Shine and Hamilton conspired to defraud the IRS, according to the factual resumes filed in the case. They used Tax On The Run to file false Forms 1040, in the names of numerous clients, which overstated and fabricated income and tax deductions on Schedule C and Forms 5405 by falsely representing that the taxpayers were entitled, under the provisions of the Housing and Economic Recovery Act of 2008, to claim a tax credit as a first-time homebuyer. As part of the scheme, according to factual resumes filed in their cases, Shine and Hamilton acted as intermediaries to recruit clients, and they were paid after they recruited impoverished taxpayers to allow their names and social security numbers to be used to file fraudulent tax returns. The fraudulent returns were routinely filed even though the tax preparers never met the taxpayers and with the full knowledge that none of the taxpayers qualified to claim the credit, according to the factual resumes.
Tax On The Run used Santa Barbara Bank and Trust (SBBT) to process refund anticipation loans based on the fraudulent returns filed. The factual resumes filed further state that after electronically filing the false tax returns, Tax On The Run would be notified by SBBT that the loan had been approved and a check could be printed and provided to the taxpayer. Once the check was printed, the taxpayer was transported to a local check cashing business and instructed to cash the refund check. After it was cashed, members of the conspiracy paid the taxpayer a small percentage of the refund and kept the remainder of the proceeds, according to the factual resume.
Defendant Jarrod Altman admitted, according to the factual resume filed in his case, that during tax year 2009, he failed to report approximately $71,133 in taxable income which was obtained from his business, Tax On The Run. Of that amount, Jarrod Altman admitted that he received $54,140 in the form of a payment by check by his brother, Jason Altman, for a 2007 Mercedes Benz S550, which was purchased in June 2009, for Jarrod Altman’s use, with money from Tax On The Run. He further admitted that he falsely reported $57,207 in taxable income for tax year 2009 that did not include the $71,133 income described above, and as a result of his false statements regarding his taxable income, Jarrod Altman caused $20,135 in tax harm to the IRS.
IRS-CI investigated the case. Assistant U.S. Attorneys J. Nicholas Bunch, Brian Poe and Rick Calvert are prosecuting
Sioux City Man Sentenced to Five Years for Receiving Child PornographyRead the Press Release
A man who downloaded child pornography was sentenced August 1, 2013, to five years in federal prison.
Michael Pedersen, age 56, of Sioux City, Iowa, received the sentence after an April 30, 2013, guilty plea to one count of receipt of child pornography. At the guilty plea, Pedersen admitted that he used the Internet to download child pornography.Pedersen was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Pedersen was sentenced to 60 months’ imprisonment. A special assessment of $100 was imposed, and Pedersen must also serve a ten-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation and the Federal Bureau of Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-4096.
Robert Lustyik, Former FBI Special Agent, and TwoCo-Conspirators Charged in White Plains Federal Court with Bribery SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Mythili Raman, the Acting Assistant U.S. Attorney General of the Criminal Division, and Michael E. Horowitz, the U.S. Department of Justice Inspector General, announced today the unsealing of a criminal Complaint (the “Complaint”) charging ROBERT LUSTYIK, a former FBI Special Agent in White Plains, JOHANNES THALER, and RIZVE AHMED, a/k/a “Caesar,” with a bribery scheme. The charges arise out of the solicitation by LUSTYIK, along with his alleged accomplice, THALER, of cash payments from AHMED in exchange for LUSTYIK and THALER’s providing confidential, internal law enforcement documents and information to AHMED which LUSTYIK had access to by virtue of his position as an FBI Special Agent. AHMED and THALER were arrested today on the charges in the Complaint and were presented before U.S. Magistrate Judge George A. Yanthis in the White Plains federal court. THALER was released on a personal recognizance bond and AHMED was detained without bail. LUSTYIK is currently detained in connection with a separate pending indictment in United States District Court for the District of Utah, where he will be initially presented on the charges in the Complaint.
U.S. Attorney Preet Bharara stated: “It is egregious when, as charged, a law enforcement officer, trained and sworn to uphold the law, transgresses into any kind of criminal behavior. It is particularly egregious when the accused was an FBI Special Agent who was willing to compromise the operations of the Bureau. But he and his co-defendants will now be treated no differently from any other person so accused. We will prosecute to the full extent of the law.”
According to allegations in the Complaint unsealed today in the White Plains federal courthouse:
LUSTYIK was an FBI Special Agent who worked in the White Plains Resident Agency. THALER was LUSTYIK’s friend, and AHMED was an acquaintance of THALER’s. From about September 2011 through March 2012, LUSTYIK, THALER, and AHMED engaged in a bribery scheme. As part of the scheme, LUSTYIK and THALER solicited payments of money from AHMED, in exchange for LUSTYIK’s agreement to provide internal, confidential documents and other confidential information to which LUSTYIK had access by virtue of his position as an FBI Special Agent. The Complaint alleges that AHMED was a native of Bangladesh who sought confidential law enforcement information, including a Suspicious Activity Report, pertaining to a prominent citizen of Bangladesh who was affiliated with an opposing political party (“Individual 1”). AHMED sought, among other things, to obtain information about Individual 1, to locate Individual 1, and to harm Individual 1 and others associated with Individual 1.
As part of the scheme, LUSTYIK and THALER exchanged text messages, including messages about how to pressure AHMED to pay them additional money in exchange for confidential information. For example, in text messages, LUSTYIK told THALER, “we need to push [AHMED] for this meeting and get that 40 gs quick . . . . I will talk us into getting the cash . . . . I will work my magic . . . . We r sooooooo close.” THALER responded, “I know. It’s all right there in front of us. Pretty soon we’ll be having lunch in our oceanfront restaurant . . . .” For another example, in or about late January 2012, LUSTYIK, upon learning that AHMED was considering using a different source to obtain confidential information about Individual 1, texted THALER, “I want to kill [AHMED] . . . . I hung my ass out the window n we got nothing? . . . . Tell [AHMED], I’ve got [Individual 1’s] number and I’m pissed. . . . I will put a wire on n get [AHMED and his associates] to admit they want [a Bangladeshi political figure] offed n we sell it to Individual 1].”
According to the Complaint, LUSTYIK and THALER accepted at least $1,000 from AHMED in exchange for the provision of confidential FBI information, including a Suspicious Activity Report. The Complaint also alleges that LUSTYIK and THALER schemed to obtain monthly cash bribes from AHMED, in increments of tens of thousands of dollars, in exchange for the provision of additional confidential law enforcement information about Individual 1 and for assistance in having criminal charges against a Bangladeshi political figure dismissed.
LUSTYIK, THALER, and AHMED are each charged in a four-count Complaint.
Count One charges LUSTYIK, THALER, and AHMED with conspiracy to bribe a public official, in violation of Title 18, United States Code, Section 371. Count Two charges LUSTYIK and THALER with soliciting and receiving bribes, in violation of Title 18, United States Code, Section 201(b)(2). Count Three charges AHMED with bribing a public official and offering to bribe a public official, in violation of Title 18, United States Code, Section 201(b)(1). Count Four charges LUSTYIK with unlawfully disclosing a Suspicious Activity Report (“SAR”), in violation of Title 31, United States Code, Section 5322(a).
LUSTYIK, 50, of Westchester County, faces, upon conviction, a maximum sentence of 25 years in prison.
THALER, 49, of Fairfield County, Connecticut, faces, upon conviction, a maximum sentence of 20 years in prison.
AHMED, 34, of Fairfield County, Connecticut, faces, upon conviction, a maximum sentence of 20 years in prison.
Acting Assistant Attorney General Raman and Mr. Bharara praised the efforts of the Department of Justice’s Office of Inspector General in connection with this investigation.
The prosecution is being handled by the U.S. Attorney’s Office for the Southern District of New York, White Plains Division, and by the Criminal Division’s Public Integrity Section of the U.S. Department of Justice. Assistant United States Attorney Benjamin Allee and Trial Attorney Emily Rae Woods are in charge of the prosecution.
The charges in the Complaint are merely accusations, and the defendants are presumed innocent until and unless proven guilty.
LustyikEtAlComplaint signed (2)
LustyikEtAlComplaint signed (2)Rapid City Woman Guilty of Drug ConspiracyRead the Press Release
United States Attorney Brendan V. Johnson announced that Diana Bald Eagle, age 39, of Rapid City, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy on July 26, 2013, and pled guilty to a charge of Conspiracy to Distribute a Controlled Substance.
A presentence investigation was ordered. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.
The penalty upon conviction is a mandatory minimum of 5 years and up to 40 years' imprisonment, and/or a $5,000,000 fine.
Between August 2009 and February 2013, Bald Eagle conspired with others to distribute methamphetamine on and around the Pine Ridge Indian Reservation.
The investigation was conducted by the Northern Plains Safe Trails Drug Task Force. The case is being prosecuted by Assistant U.S. Attorney Ted L. McBride.Prosecutors Charge Former JCCEO Official and Her Daughter with Near $500,000 Theft from AgencyRead the Press Release
BIRMINGHAM – The U.S. Attorney's Office has charged the former executive director of the Jefferson County Committee for Economic Opportunity and her daughter in connection with the theft of close to $500,000 from the non-profit organization, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
In separate informations filed in U.S. District Court, federal prosecutors charged RUTH GAYLE CUNNINGHAM, 63, with theft from a government program that had received more than $10,000 in federal funding or assistance, and charged her daughter, KELLI E. CAULFIELD, 31, with conspiracy in the scheme to defraud JCCEO.
Cunningham was executive director of JCCEO for more than 20 years before resigning the job in March. The organization employed Caulfield from May 2009 to January 2013. JCCEO is a community action agency that administers programs, including Head Start, for low-income and disadvantaged residents.
"JCCEO is an organization with 50 years of history helping some of our poorest citizens become part of the American Dream with education and assistance funded in part by federal taxpayer dollars," Vance said. "Cunningham abused the trust and discretion she was given to use this money wisely to benefit those in our community who are struggling. She used the agency's government funds as a personal piggy bank so that she and her daughter could line their pockets with hundreds of thousands of dollars intended to lift others out of poverty," Vance said. "As a community, we have to demand better from those who are charged with using public money for the benefit of all. I encourage anyone aware of this type of abuse of the public trust to contact the U.S. Attorney Office or the FBI."
“Serving the public is a privilege, not an opportunity for unjust personal enrichment," Schwein said. "Those who are entrusted to administer public programs, such as Ms. Cunningham, are expected to serve with integrity and honor. Greed and self-interest have no place in service to the community, and the FBI will continue to root out public corruption wherever we find it and at whatever level we find it,” he said.Cunningham and her daughter, both of Birmingham, have signed agreements with the government to plead guilty to the charges against them. Jointly, Cunningham and Caulfield are responsible for repaying $492,195 to JCCEO, according to their plea agreements. Cunningham agrees to pay that full amount to JCCEO. Caulfield's plea agreement cites her responsibility to repay $253,499 to JCCEO.
Cunningham acknowledges in her plea agreement that, between March 2009 and April 2010, she used JCCEO funds to make monthly mortgage payments on at least three residential properties she owned, and at least five residential properties her daughter owned, in Jefferson and Shelby counties. Cunningham also used JCCEO funds to pay property taxes on one of those properties, a house in Chelsea that she bought in 2007 with a mortgage loan of more than $1 million, according to court records.Cunningham also paid $293,413 in JCCEO funds to companies owned by her daughter, and to other contractors, for claimed repairs or renovations to the women's properties, according to their plea agreements.
As part of Caulfield's conspiracy, she acknowledges in her plea agreement that she created invoices citing repair or improvement work on the private properties and gave them to her mother, who submitted the invoices and corresponding check requests to the JCCEO finance director.
As executive director of JCCEO, Cunningham had check-signing authority up to $5,000. All of the invoices Caulfield prepared for her mother to submit for payment by JCCEO were below $5,000 and, therefore, required no second signature from a JCCEO board member on the agency's checks.
The maximum penalty for theft from a federally funded program is 10 years in prison and a $250,000 fine. The maximum penalty for conspiracy to defraud a federally funded program is five years in prison and a $250,000 fine.The FBI discovered the fraud at JCCEO while it was investigating allegations of a mortgage fraud scheme. That investigation led to federal prosecutors' charges against Cunningham and Caulfield, as well as to charges of conspiracy to defraud federally insured financial institutions against a real estate investor now living in Atlanta, and a Hoover mortgage broker. Cunningham and Caulfield bought most of the properties that later became part of their scheme to defraud JCCEO from the Atlanta investor.
The federal charges and associated plea agreements in all four cases were unsealed today in federal court in Birmingham.
The investor, the Rev. ROBERT PAUL HOLLMAN, 48, formerly of Dothan, and mortgage broker BRAD A. BOZEMAN, 34, of Hoover, are charged with conspiracy to defraud a federally insured financial institution by either making or transmitting false statements and reports intended to influence a financial institution in connection with the sale of residential properties.
Hollman agrees to pay $393,440 in restitution to banks affected by his scheme and Bozeman agrees to pay restitution of $41,460.
According to Hollman's and Bozeman's plea agreements, their mortgage fraud conspiracy took place as follows:
Hollman bought multiple residential properties in Jefferson and Shelby counties and, beginning about 2007, solicited people to buy the properties from him. He would agree, in advance of closing on the sales, to pay all or a portion of the down payments on the property and, afterward, to pay the monthly mortgage payments until the properties resold. Once Hollman had an agreement with a purchaser, or "borrower," he referred them to Bozeman to arrange a mortgage loan.
Hollman profited from the transactions because his debt on the properties was satisfied at closing and, in most of the transactions, he also received a cash payment from the sales. After a period of time, he would stop providing the borrowers money for the monthly mortgage payments and most of the properties ended up in foreclosure.
Hollman made false statements on mortgage documents by failing to disclose that he, not the borrower, was making the down payment or part of the down payment on the property. Bozeman made false statements on loan applications by including false income or not revealing all debts and liabilities of the purchasers, and transmitting that information as true and accurate.
The maximum sentence for conspiracy to defraud a federally insured financial institution is five years in prison and a $250,000 fine.
The FBI investigated the cases, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
Point Marion Man Charged with Enticing A Minor to Engage in Sexual ActivityRead the Press Release
FBI Seeking Information about Defendant
PITTSBURGH, Pa. - A Fayette County man has been indicted by a federal grand jury in Pittsburgh on a charge of attempting to induce a minor to engage in sexual activity, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on July 30, named Timothy E. Fowler, 46, of Point Marion, Pa., as the sole defendant.
According to the indictment presented to the court, Fowler attempted to knowingly persuade, induce, entice, or coerce a person under the age of 18 years to engage in sexual activity.
The law provides for a mandatory minimum sentence of 10 years in prison. 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.
Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the government.
The Fayette County District Attorney's Office and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Anyone with information regarding Fowler is encouraged to contact the Federal Bureau of Investigation at 412.432.4000.
Pilot and Passenger of Plane That Crashed at Yoakum County Airport After Refueling Plead Guilty to Drug ChargesRead the Press Release
Approximately 160 Pounds of Marijuana on Board Plane
That Belly Landed at Airport in Plains, TexasLUBBOCK, Texas — A pilot and his passenger, who belly landed their Beechcraft plane at the Yoakum County Airport on April 30, 2013, appeared this morning before U.S. District Judge Sam R. Cummings and pleaded guilty to a felony drug charge. Pilot Gregory Thomas, 50, of Sacramento, California, and his passenger, Dorothea Cangelosi, 66, of Waller, Texas, each pleaded guilty to one count of possession with intent to distribute 50 kilograms or more of marijuana and aiding and abetting. They each face a maximum statutory penalty of 20 years in federal prison and a $1 million fine, and will remain on bond pending sentencing. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea documents filed in the case, on April 30, 2013, deputies with the Yoakum County Sheriff’s Department (YCSD) responded to a plane crash at the Yoakum County Airport, in Plains, Texas. When they arrived, they observed a Beechcraft Bonanza A36 plane that had belly landed in a field approximately 50 yards past the end of the runway.
On April 29, 2013, the day before the crash, Cangelosi flew a commercial airline from Houston, Texas, to Sacramento, California, where she met up with Thomas, a charter pilot, who was paid approximately $5,000 cash to fly her from Sacramento back to Houston. They left Sacramento during the early morning hours of April 30, 2013, and in route to Houston, landed in Plains to refuel. After fueling, the plane encountered engine problems when attempting to take off and crashed.
The YCSD received a 911 call from an individual who reported seeing a female with bags by a road that runs parallel to the airport. Later, deputies located four large canvas duffel bags that were hidden next to a bush more than 100 yards from the crash site. A YCSD drug-detector dog alerted on the bags for the presence of drugs and deputies discovered 151 individual packages of marijuana, with a total weight of 72.8 kilograms or 160 pounds. The drug-detector dog also alerted to the presence of drugs inside the plane.
Thomas admits that after the plane crashed, he and Cangelosi retrieved the duffel bags from the plane’s passenger compartment and hid them more than 100 yards away, across two barbed-wire fences and a road, from the plane. Cangelosi admitted that Thomas carried most of the bags and threw some of them over the fence. They both admitted that they had intended to distribute the marijuana to other individuals in Houston.
The case was investigated by the Drug Enforcement Administration, the Federal Aviation Administration, the YCSD and the Texas Department of Public Safety. Assistant U.S. Attorney Justin Cunningham prosecuted.
Pennsylvania Man Sentenced in Manhattan Federal Court to 57 Months in Prison for Bribing A New York City Department of Education Employee in Furtherance of $2.7 Million FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that NELSON RUIZ was sentenced in Manhattan federal court to 57 months in prison and restitution for defrauding the New York City Department of Education (“DOE”) out of approximately $2.7 million and to bribing a DOE employee in furtherance of the fraud scheme. RUIZ pled guilty in December 2012 to one count of mail fraud and one count of bribery concerning programs receiving federal funds before U.S. District Judge John G. Koeltl, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Nelson Ruiz lined his pockets with $2.7 million of scarce New York City resources meant for special-needs children and bribed a public employee in the process. Today, he was made to pay for his crimes with 57 months in prison and restitution of the $2.7 million. We will continue to do everything in our power to pursue and prosecute those who defraud the government, particularly those who shamelessly funnel money away from some of the city’s neediest programs.”
According to the Complaint, the Information, the plea agreement, and statements made in court:
From 2008 through June 2012, RUIZ used six companies that he controlled (the “RUIZ Companies”) to bill the DOE approximately $2.7 million for sign language interpretation services. According to the DOE billing forms that RUIZ submitted, the sign language interpretation services were provided during that time to 11 New York City public schoolchildren – all of whom had varying special needs, including cognitive, developmental, academic, and language delays (the “11 Students”) – at their schools.
None of the sign language interpretation services for which the DOE paid the RUIZ Companies were ever provided to any of the students. In fact, none of the students actually needed the services that the RUIZ Companies claimed to have provided and for which he received approximately $2.7 million. For example, during the 2010-2011 and 2011-2012 academic years, at least three of the 11 Students were not even enrolled in a DOE school. In addition, from July 2010 through May 2012, RUIZ falsely certified on 75 DOE billing forms that he had provided approximately $200,000 worth of sign language interpreting services to one of the 11 Students, even though that student never received any such services during that period and had not been a New York City public school student since 2009. Ruiz also used students’ personal information, submitted fraudulent DOE applications and billing forms, forged the signatures of at least two students’ parents and seven DOE officials – one of whom had died prior to the date of her forged signature, and another who had retired six years prior to the date of her forged signature.
As part of this scheme, RUIZ paid hundreds of dollars each month to a DOE employee, Thomasina Chappell, to whom he submitted the fraudulent billing forms for the 11 Students. RUIZ paid these bribes in exchange for her assistance in, among other things, expediting the processing of and payment to RUIZ for the fraudulent sign language interpretation bills.
In addition to his prison term, RUIZ, 36, of Shohola, Pennsylvania, was ordered to forfeit $2,720,860, representing the proceeds of the crime, including approximately $275,000 that the Government seized from the RUIZ Companies’ bank accounts at the time of RUIZ’s arrest. He was also ordered to pay $2,720,860 in restitution to the New York City Department of Education and a $200 special assessment fee.
Chappell pled guilty in June 2013 to one count of conspiring to commit federal programs bribery in connection with her receipt of cash from RUIZ in exchange for her assistance in processing invoices for sign language interpretation services purportedly being provided by the RUIZ Companies. She faces a maximum sentence of five years in prison, and is scheduled to be sentenced by Judge Koeltl on December 13, 2013.
Mr. Bharara praised the investigative work of the New York City Department of Investigation and the Special Commissioner of Investigation for the New York City School District.
This case is being prosecuted by the Office’s Public Corruption Unit. Assistant United States Attorney Paul Krieger is in charge of the prosecution. Assistant United States Attorney Andrew Goldstein is in charge of the forfeiture aspects of the case.
One Man Sentenced to 50 Years in Prison, Two Others Plead Guilty to Child Pornography ChargesRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that one man was sentenced and two pleaded guilty Thursday to various child pornography related charges. The sentencing and guilty pleas were held before U.S. District Judge Patricia Minaldi.
KANSAS MAN SENTENCED TO 50 YEARS FOR PRODUCING CHILD PORN
Lonnie Allen Truitt, 27, of Coffeyville, Kan., was sentenced to 50 years in prison and a lifetime of supervised release for production of child pornography. According to evidence presented at the guilty plea, the defendant began text messaging a 15-year-old girl in east Texas on November 1, 2011. Truitt convinced the girl to provide him with sexually explicit images. Between November 15 and 30, 2011, the defendant traveled to Texas to meet with the girl. Truitt and the girl then traveled to a camp in Lake Charles where they engaged in sex acts. Truitt was arrested when camp staff members became suspicious and called law enforcement authorities. He pleaded guilty on April 11, 2013.
“Today’s sentencing shows that Homeland Security Investigations (HSI) and its law enforcement partners will identify and seek prosecution of sexual predators everywhere regardless of where they may travel to flee from justice,” said HSI New Orleans Special Agent in Charge Raymond R. Parmer Jr. Parmer.
EX-TUGBOAT CAPTAIN PLEADS GUILTY TO TRANSPORTING CHILD PORN
Former tugboat captain Kenneth Dwight Dickey, 57, of Foley, Ala., pleaded guilty to transporting child pornography. According to evidence presented at the guilty plea, law enforcement authorities detected Dickey downloading child pornography using “peer-to-peer” software. Those using peer-to-peer software usually take a file and place it in a “shared folder” on a computer for the purpose of distribution with other individuals on the internet. A search of the defendant’s computer and phone on October 15, 2012 showed that Dickey was in possession of child pornography. He also admitted to transporting child pornography from Mississippi to the Western District of Louisiana. The child pornography on the computer was sadistic in nature.
Dickey faces up to 20 years in prison, five years to life of supervised release, and a $250,000 fine, for transporting child pornography.
WESTLAKE MAN PLEADS GUILTY TO POSSESSING CHILD PORN
Michael Sonnier, 31, of Westlake, La., pleaded guilty to possession of child pornography. According to evidence presented at the guilty plea, law enforcement authorities detected Sonnier downloading child pornography using file sharing software. A search of the defendant’s computer and phone on October 18, 2012 showed that he had downloaded more than 26 movies of hardcore child pornography, which included sadistic material depicting prepubescent children.
Sonnier faces up to 10 years in prison, five years to life of supervised release, and a $250,000 fine for possession of child pornography.
“The defendants in these cases are child predators who participated or facilitated the abuse of children,” Finley stated. “The public should be aware that these criminals use cell phones, computers, and other technology to connect with minors or to download images of children being sexually abused. This office will continue to prosecute these cases to the fullest extent of the law in order to protect the children of this community.”
Homeland Security Investigations investigated the cases. Assistant U.S. Attorney John Luke Walker is prosecuting the cases.
All of the cases were brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be submitted anonymously.
Norwalk Man Impersonated Organized Crime Figures to Extort $200,000 from Fairfield County BusinessmanRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that JOSEPH CASOLO, 45, of Norwalk, waived his right to indictment and pleaded guilty yesterday before United States Magistrate Judge Thomas P. Smith in Hartford to one count of extortion.
According to court documents and statements made in court, between approximately September 2010 and December 2011, CASOLO extorted money from a small-business owner in Fairfield County by impersonating organized crime figures. CASOLO threatened the victim in person, in phone conversations and in text messages using multiple personas, repeatedly stating or implying that if the victim failed to make the extortion payments, the victim, the victim’s spouse, and the victim’s daughter would be harmed with violence. CASOLO also enlisted the assistance of an individual who identified himself as “Lorenzo,” the organized crime family’s “enforcer,” and made multiple threatening calls to the victim at CASOLO’s direction.
The investigation has revealed that the victim made more than $200,000 in cash payments to CASOLO as a result of his threats. CASOLO shared a portion of these funds with the individual who played the role of “Lorenzo.”
CASOLO, who has been detained since his arrest on November 20, 2012, is scheduled to be sentenced by United States District Judge Vanessa L. Bryant in Hartford on October 24, 2013. CASOLO faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. This case is being prosecuted by Assistant United States Attorney Hal Chen.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Meth Dealer Arrested for Second TimeRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and William J. Bryant, Assistant Special Agent in Charge of the Little Rock District Office of the Drug Enforcement Administration (DEA) announced that Chester Green, age 32, was arrested yesterday and charged today on a federal Complaint with distribution of methamphetamine.
The arrest was made after a confidential informant made a methamphetamine purchase under the direction of law enforcement. The Arkansas State Police is conducting an investigation regarding shots fired during the arrest. No one was injured in the incident. This is the second arrest and federal drug distribution charge for Green in the past three months. A Motion to Revoke his bond was filed along with the Complaint. Green is in custody. His initial appearance on this charge is expected to be early next week.
Chester Green was out on bond from an arrest on May 21, 2013. He was arrested with five others on a 22-count indictment charging ten defendants from Central Arkansas and Texas with multiple drug offenses. Approximately 34.5 kilograms of methamphetamine, 22 pounds of marijuana, and $211,000 in U.S. currency were seized in Operation "SoLow". In addition, the Lonoke County Sheriff's Department uncovered the first methamphetamine conversion lab seen in the State of Arkansas to date, which was directly connected to two of the defendants indicted in the SoLow case. This lab was used to convert methamphetamine into crystal methamphetamine or "Ice." "Ice" is high-purity methamphetamine.
"The effect of meth and more particularly, "Ice," on our communities is a serious concern," stated Thyer. "Many studies have shown its devastating effect on the user's health. Meth labs pose a health risk to those nearby and an environmental risk due to the chemicals used and discarded in the process. This office is working closely with the DEA and Drug Task Forces across the State to prosecute to the full extent of the law those who seek to bring this scourge into our communities."
"Methamphetamine continues to be the number one drug threat in the state of Arkansas", said Bryant. "The dismantlement of this drug trafficking organization made a significant impact on the Central Arkansas community. Based on the significant seizures made in this investigation, it kept this large amount of methamphetamine from being distributed in our communities in Arkansas. The seizure of this large methamphetamine conversion lab in this case is a first for Arkansas, however other southern states have seen an increase in these types of labs."
The DEA and Central Arkansas Drug Task Force initiated an investigation into the drug-trafficking activities of Chester Green, aka "Cheese," in early 2012. Through that investigation, law enforcement learned that Green was distributing large quantities of methamphetamine in Central Arkansas and that he was being supplied by a distribution network out of Texas. The DEA, the Central Arkansas Drug Task Force, and the Arkansas State Police made multiple controlled purchases of methamphetamine from defendants during this investigation. Law enforcement also learned during the course of the investigation that one of the defendants being supplied with methamphetamine by Green, Timothy Vachon Johnson, is an employee of the United States Postal Service. Timothy Johnson was seen picking up methamphetamine from Green in his mail truck while on duty in Searcy.
The indictment was handed down by a Federal Grand Jury on March 9, 2013. The counts include conspiracy to distribute and to possess with intent to distribute more than 500 grams of methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine and marijuana, and use of telephone to facilitate a drug trafficking crime. (See defendant/charge list attached.). If convicted of conspiracy to distribute more than 500 grams of methamphetamine each defendant will face a sentence of not less than 10 years to life imprisonment.
This investigation is designated as a Gulf Coast High Intensity Drug Trafficking Area (HIDTA) and as an Organized Crime and Drug Enforcement Task Force (OCDETF) case . Through the inclusion of Arkansas into the Gulf Coast HIDTA, law enforcement is provided additional training and tools to disrupt and dismantle major drug trafficking organizations in Arkansas.
The investigation for this arrest and the original SoLow Operation was conducted by the DEA. The SoLow Operation also included assistance from HIDTA #61 which consists of special agents from the DEA, as well as officers and personnel from the following agencies: Pine Bluff Police Department; Jefferson County Sheriff's Department; Jacksonville Police Department; 20th Judicial District Drug Task Force; Little Rock Police Department; Arkansas Highway Police; and the Arkansas National Guard. Also providing investigative assistance was the United States Post Office - Office of the Inspector General. The U.S. Attorney also thanks the following state and local partners who provided valuable assistance to the Task Force for the SoLow investigation and arrests: the Arkansas State Police, Homeland Security Investigations, White County Sheriff's Department, Lonoke County Sheriff's Department, Little Rock Police Department, Bald Knob Police Department, Higginson Police Department, and the Searcy Police Department. The indictment is being prosecuted by Assistant United States Attorney Benecia B. Moore.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty. The charges set forth in a Complaint are merely allegations. A federal Grand Jury will decide whether to indict on these charges. The defendant is presumed innocent until proven guilty.
SoLow DEFENDANTS/CHARGES
Conspiracy to distribute and possess with intent to distribute methamphetamine:
Chester Green, aka "Cheese," 32, detained on new charge August 2, 2013
Olen Jay Defoure, 35, released Justin Ellis, 25, released
Chevis Johnson, 27, detained on separate charges in Western District of Arkansas
Rodney Johnson, 34, released
Timothy Vachon Johnson, 37 released
Sammy Antoine Neal, 37, released
Marco Antonio Portes-Ortega, aka "Tony," age unknown, fugitive
Jose Refugio Ruiz-Juarez, aka Jose Ruiz-Cortes, aka "Cuco," 40, detained on separate charges
Roxana Whisenhunt, aka Roxana de al Rosa-Ramirez, 34, detained on separate charges
In addition to the conspiracy charges, the following defendants are also charged with the following crimes:
Chester Green, aka "Cheese", distribution of methamphetamine (2 counts), use of a telephone to facilitate a drug trafficking crime (2 counts).
Olen Jay Defoure, possession with intent to distribute methamphetamine (1 count).
Chevis Johnson, possession with intent to distribute methamphetamine (1 count), use of a telephone to facilitate a drug trafficking crime (1 count).
Rodney Johnson, possession with intent to distribute methamphetamine (1 count).
Timothy Vachon Johnson, distribution of methamphetamine (3 counts), use of a telephone to facilitate a drug trafficking crime (2 counts).
Sammy Antoine Neal, possession with intent to distribute methamphetamine (1 count).
Justin Ellis, use of a telephone to facilitate a drug trafficking crime (2 counts).
Marco Antonio Portes-Ortega, aka "Tony," use of a telephone to facilitate a drug trafficking crime (2 counts).
Jose Refugio Ruiz-Juarez, aka Jose Ruiz-Cortes, aka "Cuco," possession with intent to distribute methamphetamine (1 count), possession with intent to distribute marijuana (1 count)
Roxana Whisenhunt, aka Roxana de al Rosa-Ramirez, possession with intent to distribute methamphetamine (1 count), possession with intent to distribute marijuana (1 count), use of a telephone to facilitate a drug trafficking crime (1 count).
STATUTORY SENTENCES
Conspiracy to possess with intent to distribute more than 500 grams of methamphetamine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Possession with intent to distribute more than 500 grams of methamphetamine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Distribution of more than 5 grams of methamphetamine actual and possession with intent to distribute more than 50 grams of methamphetamine are punishable by not less than 5 years, not more than 40 years, incarceration in the Bureau of Prisons with a possible fine of up to $5,000,000, and not less than 4 years supervised release.
Distribution and possession with intent to distribute less than 50 grams of methamphetamine are punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Possession with intent to distribute less than 50 kilograms of marijuana is punishable by not more than 5 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 2 years supervised release.
Use of a communication facility to facilitate a drug trafficking crime is punishable by not more than 4 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 1 year supervised release.
Member of Violent Robbery Crew Sentenced to 65 Years in Prison After Being Found Guilty in Manhattan Federal Court of Murder, Nine Robberies, and Firearms ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JERMAINE DORE, a member of a violent robbery crew operating in the Bronx and Westchester County, New York, was sentenced today in Manhattan federal court to 65 years in prison. DORE and his co-defendant Dwayne Barrett were convicted in March 2013 of murder, robberies, and firearms charges after a two-week jury trial before U.S. District Judge Richard J. Sullivan, who imposed today’s sentence.
DORE was sentenced based on his convictions on the following seven counts: (1) participating in a conspiracy to commit robberies from 2010 through January 2012; (2) using, carrying, or possessing firearms in connection with the robbery conspiracy; (3) committing a robbery on October 29, 2011, at an apartment on Radcliff Avenue in the Bronx, New York; (4) using, carrying, or possessing firearms in connection with the October 29 robbery; (5) committing a robbery on December 12, 2011, in the vicinity of 267 South Fourth Avenue, Mount Vernon, New York; (6) using, carrying, or possessing firearms in connection with the December 12 robbery; and (7) causing the death of Gamar Dafalla, one of the victims of the December 12 robbery.
Manhattan U.S. Attorney Preet Bharara said: “Jermaine Dore marauded across Pennsylvania, the Bronx and Westchester County in a series of violent robberies against local merchants, including one cold-blooded attack that left a victim dead. A jury found him and his co-defendant Dwayne Barrett guilty, and now Dore has paid for his crimes with a steep sentence.”
According to the Superseding Indictment and the evidence presented at trial:
Between August 2011 and January 2012, DORE and Barrett participated in nine separate robberies. They carried out those robberies, using weapons – including firearms and knives – to injure, terrorize, and in one case murder, one of their victims. The nine robberies were:
- A robbery that took place on August 22, 2011, in Matamoras, Pennsylvania, during which an individual who owns a gas station and store was assaulted and robbed of approximately $45,000 in business proceeds;
- A robbery that took place on October 5, 2011, in the Bronx, New York, during which two individuals who sell telephone calling cards to bodegas, grocery stores, and other commercial locations, were robbed of approximately $700;
- A robbery at knifepoint that took place on October 10, 2011, in the Bronx, New York, during which the employee of a bodega was robbed of a cellphone and laptop computer;
- A robbery at knifepoint that took place on October 11, 2011, in New Rochelle, New York, during which an individual who sold telephone calling cards was beaten and robbed of more than $6,000 and telephone calling cards valued at approximately $6,000;
- A robbery at gunpoint that took place on October 29, 2011, of an individual who owns a poultry market in the Bronx, New York, during which approximately $15,000 in business proceeds were taken;
- A robbery at gunpoint on December 12, 2011, in Mount Vernon, New York, during which the defendants attempted to rob three victims engaged in the business of selling cigarettes to other individuals and commercial establishments, and shot and killed one of the victims;
- A robbery that took place on December 12, 2011, in the Bronx, New York, during which an individual employed by a company that sells tobacco products to commercial establishments was threatened with a gun and a knife and robbed of more than $15,000;
- A robbery that took place on December 31, 2011, in the Bronx, New York, during which an individual who sold telephone calling cards was beaten and robbed of approximately $3,000 and 100 telephone calling cards; and
- A robbery at knifepoint that took place on January 7, 2012, in the Bronx, New York, during which an individual who owns a business that supplies merchandise to bodegas was assaulted and robbed of approximately $1000.
In addition to DORE, 26, of the Bronx, New York, Judge Sullivan is scheduled to sentence Barrett on September 25, 2013. Barrett faces a maximum sentence of life in prison.
Three other defendants pled guilty to related charges prior to trial: Fahd Hussain, Taijay Todd, and Tameshwar Singh. Hussain was the operator of One M Stationery Store, located on White Plains Road in the Bronx, New York, who exploited his relationships with other business owners, including individuals who supplied Hussain’s store with telephone calling cards and other merchandise, personal friends, and family members in targeting the robbery victims. Many of the victims were business owners and members of the Yemeni community in New York City, as was Hussain. Todd participated in several of the robberies with DORE and Barrett. Singh was a business associate of Hussain who engaged in the transportation of untaxed cigarettes. Hussain, Todd, and Singh are scheduled to be sentenced by Judge Sullivan on September 11, August 8, and August 9, 2013, respectively.
Mr. Bharara praised the New York Division of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives and the Police Department for the City of New York for their work in this investigation.
The prosecution of this case is being overseen by the Office’s Violent Crimes Unit. Assistant United States Attorneys Amy Lester and Jessica Masella are in charge of the prosecution.
McCandless Man Indicted on Child Exploitation ChargesRead the Press Release
PITTSBURGH, Pa. - An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on charges of distribution, receipt, and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The three-count indictment, returned on July 30, named Mark Janosko, 47, of Pittsburgh, Pa., as the sole defendant.
According to the indictment, on or about July 3, 2013, Janosko distributed images containing material depicting the sexual exploitation of minors. The indictment further alleges that on or about July 3, 2013, Janosko received images containing material depicting the sexual exploitation of minors. Finally, the indictment alleges that on or about July 19, 2013, Janosko possessed visual depictions, namely, images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 50 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police, and the Indiana County and Allegheny County District Attorney's Offices and the McCandless Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Maryland Man Sentenced to 17-Year Prison Term for Pair of Robberies of Metro PassengersRead the Press Release
-Second Man Recently Sentenced to 14 Years in Prison For His Role in Crimes-WASHINGTON – Clifton Smith, 21, of Oxon Hill, Md., was sentenced today to 17 years in prison for his role in a series of crimes, including two robberies that took place last year on Metrorail trains, U.S. Attorney Ronald C. Machen Jr. announced.
Smith and a co-defendant, Alazajuan Gray, 20, of Washington, D.C., were found guilty by a jury in May 2013 of armed robbery, robbery, obstruction of justice, threats, contempt of court, carrying a dangerous weapon and other charges. The verdicts followed a trial in the Superior Court of the District of Columbia. Gray was sentenced July 23, 2013, to a 14-year prison term. Both defendants were sentenced by the Honorable Herbert B. Dixon, Jr.
Upon completion of their prison terms, both men will be placed on five years of supervised release.
According to the government’s evidence, on Sept. 21, 2012, at about 11:30 p.m., Gray and Smith approached several college students who had recently moved to Washington, D.C. as these college students, including the victim, were on a Metrorail train at the Fort Totten station. Gray, who was armed with a handgun, took the victim’s iPhone and money. Smith encouraged Gray to take the victim’s property. The victim did not report the crime at the time; Smith told him not to “snitch” and tell the police or he would be harmed.
One week later, on Sept. 28, 2012, at 8:30 p.m. the same victim, who was returning home from his part-time job he used to pay for community college, was at the Fort Totten Metro station and again encountered Gray and Smith. Gray approached him and flashed a gun. Gray and Smith chased the victim into the station’s kiosk. While inside the kiosk, Smith demanded if he was “snitching” and then assaulted the victim. Gray and Smith fled, but soon were caught by police.
Neither the gun nor the victim’s iPhone were found on either of the defendants. However, police found an iPhone near the location where Smith was stopped that night by the Metro Transit Police. The iPhone was linked to a separate Sept. 28, 2012 robbery. That robbery occurred at 7:30 p.m. on a Metrorail train at the Gallery Place/Chinatown station. In that incident, Gray grabbed an iPhone from a woman who had also recently moved to Washington, D.C. She was studying her graduate school homework as the train arrived at the station. After Gray snatched the iPhone, Smith then blocked the victim’s attempt to chase after Gray.
Cellular tower evidence placed Gray’s cell phone at the scene of the first armed robbery.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department. He also expressed appreciation to the Metro Transit Police and the FBI for assisting in the investigation. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Todd McClelland, Lynette Briggs, Lynda Randolph, and Kendrell Smith; Litigation Technology Specialists Anisha Bhatia, Thomas Royal, Will Henderson, Josh Ellen, Paul Howell, Claudia Gutierrez, and Leif Hickling; Victim/Witness Advocates Jennifer Clark and James Brennan; interns Ashley P. Foote, Taylor Jones and Chelsea King; former intern Justin Bennett, and Assistant U.S. Attorneys Suzanne Curt and Chrisellen Kolb, Deputy Chiefs of the Appellate Division. Finally, he thanked Assistant U.S. Attorney Phil Selden, of the Felony Major Crimes Section, who is prosecuting the matter.
13-276Madison Attorney Sentenced for Bankruptcy Fraud SchemeRead the Press Release
Jackson, Miss – Michael E. Earwood, 61, an attorney from Madison, Mississippi, was sentenced today in U.S. District Court to 46 months in prison followed by three years of supervised release for bankruptcy fraud, announced U.S. Attorney Gregory K. Davis, Acting U.S. Trustee Henry G. Hobbs, Jr. of Region 5, FBI Special Agent in Charge Daniel McMullen and Jon T. Rymer, Inspector General of the FDIC. Earwood was also ordered to pay restitution in the amount of $792,228.53.
Earwood previously pled guilty to devising and executing a scheme to obtain money from a business partner by falsely representing that the money would be used to maintain real property owned by Kinwood Capitol Group. He admitted transferring title to the real property assets of the business without the knowledge and consent of his business partner, who held a majority interest in the assets of the business. Earwood admitted that he transferred these assets to his own company named Northlake Development. He then used that property as collateral for bank loans to Northlake Development, but still continued to solicit money from the business partner for a period of time. Earwood admitted that when the bank attempted to foreclose on the Northlake Development loan, he placed Northlake Development into bankruptcy, and continued to conceal the unauthorized transactions from his business partner and the banks from which he had obtained loans.
This case was prosecuted by First Assistant U.S. Attorney Harold Brittain, Assistant U.S. Attorney Carla J. Clark, and Special Assistant U.S. Attorney Sammye S. Tharp. The investigation was conducted by the Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG) and the Federal Bureau of Investigation, assisted by the Office of the U.S. Bankruptcy Trustee, Region 5.
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Little Rock Man Sentenced to 15 Years in Prison in District’s First Sex Trafficking CaseRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced that United States District Judge J. Leon Holmes sentenced Jermaine Lamon Roy, age 22, of Little Rock to 15 years imprisonment followed by 3 years of supervised release for sex trafficking.
“The women forced into sex trafficking now know that Roy will not be able to enslave them for many years to come,” stated Thyer. “They have the opportunity to regain their dignity and rebuild their lives without the threat of violence coercing them into sexual servitude. I’m grateful to our many law enforcement partners on the Denied Innocence Task Force for their commitment to protect young women of Arkansas from domestic sex trafficking.”
The case was investigated by the Little Rock Police Department Vice Unit in conjunction with the FBI through the Denied Innocence Task Force. They conducted a series of three undercover prostitution operations. Through these operations they learned of a pimp working in Little Rock using the name Vegas. During the third undercover operation, the Denied Innocence Task Force came in contact with a victim who identified the man using the name Vegas as her pimp. Vegas, later determined by investigators to be Roy, was arrested as a result of that sting operation.
Roy was charged in a Superseding Indictment on May 9, 2013, with one count of sex trafficking by the use of force, fraud, or coercion. August 2, 2013, after four and one-half hours of deliberation following four days of testimony and presentation of evidence, the jury found Roy guilty. Testimony from the victim, family members of the victim, and another prostitute who worked for Vegas showed that Roy routinely used force or threatened the use of force to cause the victim to engage in commercial sex acts.
This case was investigated by the Little Rock Police Department Vice Squad in partnership with the FBI Denied Innocence Task Force, of the FBI, the Little Rock, North Little Rock, Benton, Bryant, and Conway Police Departments, the Saline County Sheriff's Office, Arkansas State Police, Homeland Security Investigations, and the United States Marshal's Service. The case was prosecuted by Assistant United States Attorneys Marsha Clevenger, Tricia Harris and Kristin Bryant.
Kaufman County Man Sentenced to 30 Years in Federal Prison for Producing Sexually Explicit Photos of Small ChildrenRead the Press Release
DALLAS — Billy Wayne Johnson, 55, of Scurry, Texas, was sentenced today by Chief U.S. District Judge Sidney A. Fitzwater to 30 years in federal prison and a lifetime of supervised release following his guilty plea in April 2013 to a superseding information charging one count of transportation of child pornography and one count of possession of child pornography. Johnson has been in custody since his arrest in February 2013 on a related federal criminal complaint. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, the investigation began in December 2012 when a special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) was conducting an undercover investigation to identify persons who were distributing child pornography using peer-to-peer file-sharing and the Internet. The investigation revealed an IP address that was connected to Johnson.
Johnson admitted that he obtained images of child pornography from other peer-to-peer users/members in his private network of contacts, and that he downloaded, viewed and shared images of child pornography. A forensic evaluation of Johnson’s laptop and thumb drive that were seized revealed more than 1600 images and 194 videos of child pornography. Also located on his laptop were lewd and lascivious photographs, as well as a video, that he admitted taking of boys under age six. He further admitted that some of the images and videos he possessed depicted sadistic images of prepubescent minors. He also admitted that he engaged in several chats with other members of his peer-to-peer network in which he and the others discussed their interest in molesting and sexually assaulting children under the age of six.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI was in charge of the investigation; Assistant U.S. Attorney Camille Sparks prosecuted.
Jordanian Sentenced for Marrying on Two Separate Occasions to Evade Immigration LawsRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that Emad Edin Yousef Abdallah, 29, of Jordan, was sentenced Thursday by U.S. District Judge Richard T. Haik, to time served and two years of supervised release for marrying on two separate occasions in an attempt to evade U.S. immigration laws. Haik stated that Abdallah had agreed to leave the United States within 10 days of sentencing. The judge also stated that if Abdallah returns to the United States within the two year supervised release period, the terms of his federal supervised release will be reinstated.
According to evidence presented at the guilty plea, the defendant admitted that he entered into two fraudulent marriages to change his immigration status and evade the immigration laws of the United States. The March 3, 2009, marriage ended in divorce in June of 2010, and Abdallah married another woman on June 27, 2011. He admitted that the second marriage also took place in part to change his immigration status and evade immigration laws.“The defendant in this case admitted to illegally getting married on two separate occasions in order to remain in this country,” Finley stated. “His actions were a willful violation of immigration laws. My office will continue to look at these cases and prosecute them when warranted.”
United States Immigrations and Customs Enforcement conducted the investigation. Assistant U.S. Attorney James T. McManus prosecuted the case.
Indictment Unsealed Following Arrest Charging Three with the Alleged Violent Robbery of Jewelry StoreRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that an indictment charging three individuals with allegedly being involved in the violent robbery of a York County jewelry store has been unsealed.
According United States Attorney Peter J. Smith, Jamell Smallwood, age 42, of Allentown, Pennsylvania, Timothy Forbes, age 31, of Allentown, Pennsylvania and Jesse Brewer, age 38, of Jamaica, New York, were charged with robbery and possession of a firearm during a crime of violence.
An indictment returned by a Harrisburg grand jury on January 30, 2013, was sealed pending the arrest of Smallwood. A superseding indictment was returned on May 15 adding charges against Forbes and Brewer.
The charges are the result of allegations that on July 12, 2012, Smallwood, Forbes and Brewer robbed White Jewelers in York, Pennsylvania and shot the owner of the store three times, severely injuring him.
The case is being jointly investigated by the Federal Bureau of Investigation and the York Area Regional Police Department. The case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Houston Man Ordered to Prison…Again for Second Wire Fraud SchemeRead the Press Release
HOUSTON - Houstonian Nathaniel Chilo, aka Nathaniel O’Neil, 23, now convicted in two separate debt relief scams, has been sentenced to prison again, United States Attorney Kenneth Magidson announced today. Chilo entered a plea of guilty to wire fraud in relation to this case Thursday, Dec. 13, 2012.
Today, U.S. District Judge Lee H. Rosenthal, who accepted the guilty plea, handed Chilo a sentence of 51 months in federal prison to be immediately followed by a term of three years of supervised release.
Chilo operated debt relief businesses in the Houston area under several different names including, but not limited to, Universal Restoration and C & N Recovery. Both Chilo and co-defendant Savannah Rae Williams, 25, also of Houston, have admitted they fraudulently represented that settlements has been arranged for an individual in Georgia, but then used that money for their own benefit.
Chilo was first indicted in a separate scheme perpetrated by him and his father, Jeffery Wayne O’Neil, 55, of Houston. Chilo was arrested in late August 2011 and released on Sept. 14, 2011, pending further criminal proceedings. Among his conditions of release were that he not commit any other criminal offenses nor have a job in credit repair, credit counseling, credit accounts, credit history and credit restoration.
On or about Sept. 16, 2011, a letter was sent to an individual in Georgia that falsely representing a settlement had been reached in the amount of $32,541.56 with one of the person’s creditors. As a result, the individual’s wife then wired monies to cover the settlement, but neither Chilo nor Williams ever paid the creditor.
A second email was sent the next month which indicated a settlement on another account in the amount of $35,409.18. That settlement was also fraudulent, but thinking it was a legitimate, the victim again wired the monies.
Williams and Chilo never arranged the settlements and never paid the creditors, but used the monies for their own benefit. They have both admitted they fraudulently received $67,950.74.
Williams pleaded guilty to her role in the scheme in March 2013 and was also sentenced today to three years of probation and ordered to pay $40,894.47 in restitution.
Chilo and his father were sentenced to respective terms of 70 and 78 months in prison in the other case by U.S. District Judge Ewing Werlein Jr. on July 12, 2013. The sentence imposed upon Chilo today will be served concurrently to the previous term for a total of 70 months in federal prison. Chilo will have to pay a total of $130,176.09 in restitution for both cases.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney John Braddock.