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Friday 2 August 2013
Former Texas Representative “Jim” Solis Gets 47 Months in Prison for Limas Extortion SchemeRead the Press Release
BROWNSVILLE, Texas – Former Texas representative Jose Santiago “Jim” Solis has been ordered to prison following his conviction of aiding and abetting the extortion by former state district judge Abel Corral Limas, United States Attorney Kenneth Magidson announced today. Solis pleaded guilty April 29, 2011.
Today, U.S. District Judge Andrew Hanen, who accepted the guilty plea, handed Solis a total sentence of 47 months in federal prison. At the hearing, additional testimony was presented including the impact suffered by victims as well as Solis’ family and friends. Judge Hanen took into consideration the testimony of witnesses before pronouncing the sentence and stated Solis “betrayed the public trust and violated the oath to uphold the laws.” Solis was further ordered to pay restitution of approximately $119,000 and will serve a term of three years of supervised release following completion of the prison sentence. An additional amount of $250,000 was ordered forfeited as proceeds derived from the offense.
Solis, 47, a life-long resident of Harlingen, has practiced law in south Texas for many years, focusing primarily in personal injury cases. Solis served as a member of the Texas House of Representatives, representing District 38, for seven terms - retiring from the Legislature in 2007.
At the time of his guilty plea, Solis admitted his part in former Judge Limas’ use of the office of judge of the 404th District Court as a criminal enterprise to enrich himself and others, including Solis, through extortion. Limas accepted money and other consideration from attorneys in civil cases pending in his court, including Solis, in return for favorable pre-trial rulings in certain cases, including a case involving a helicopter crash at South Padre Island in February 2008. Solis specifically admitted to paying Limas $8,000 in May 2008, a payment they described as eight “golf balls,” for favorable rulings.
Evidence also showed Solis participated in a series of meetings with attorney Marc Garrett Rosenthal and Limas in the summer of 2008 during which they planned and negotiated the terms of Limas’ employment as an “of counsel” attorney with the firm. During those meetings, Rosenthal promised Limas an advance of at least $100,000 as well as a percentage of attorneys’ fees earned in the helicopter crash case. Limas’ employment arrangements were confirmed in calls on Aug. 28, 2008, between Limas and his wife and son. The intercepted calls indicated Limas was expecting to be “cut in” on 10% of the settlement/judgment of the helicopter crash case pending in his court and the $100,000 advance. On Dec. 31, 2008, Limas received a check for $50,000 payable from the Rosenthal & Watson Law Firm. On Jan. 2, 2009, Limas received a check for $50,000 from Solis.
In October 2009, the helicopter case settled for approximately $14 million and Limas received approximately $85,000 from the Rosenthal & Watson Law Firm approximately two months later.
To date, a total of eight defendants have entered guilty pleas to related violations in the FBI’s four-year public corruption investigation, including Limas, former state district judge of the 404th District Court; local attorney Jose “Joe” Valle; former Cameron County District Attorney’s Office investigator Jaime Munivez; Jose Manuel “Meme” Longoria; Armando Pena and his wife, Karina. Three others - attorneys Ray Roman Marchan, Marc Garrett Rosenthal and former Cameron County District Attorney Armando Villalobos were found guilty of public corruption-related charges involving their association with Limas after separate jury trials. Marchan was previously sentenced to 42 months imprisonment which was vacated upon his death. Rosenthal and Villalobos will be sentenced Sept. 23 and Oct. 15, 2013, respectively.
Solis was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation has been conducted by the FBI with the assistance of the Drug Enforcement Administration and Brownsville Police Department. Southern District of Texas Assistant United States Attorneys (AUSA) Michael Wynne and Oscar Ponce are prosecuting this case. The cases against Villalobos, Rosenthal and Lucio are being prosecuted under the direction of the Western District of Texas by AUSAs Wynne and Greg Surovic.
Former State Department Contract Employee and Husband Plead Guilty to $53 Million FraudRead the Press Release
ALEXANDRIA, Va. – Kathleen D. McGrade, age 64, and Brian C. Collinsworth, age 47, of Stafford, Va., pleaded guilty today to major fraud against the government, conspiracy to launder monetary instruments, and engaging in unlawful monetary transactions.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Harold W. Geisel, Acting Inspector General for the Department of State; and Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Section, Washington, D.C. Field Office, made the announcement after the plea was accepted by United States District Judge Liam O’Grady.
“Defendants McGrade and Collinsworth- now convicted felons-defrauded and stole from the American people, plain and simple,” said U.S. Attorney Neil H. MacBride. “We, along with our law enforcement partners, are committed to ferreting out and prosecuting those that destroy the integrity of the government contracting process.”
"I commend our investigators on their excellent work in this case, and diligence in protecting taxpayer dollars," said Harold W. Geisel, Acting Inspector General, U.S. Department of State and Broadcasting Board of Governors.
“The scope and breadth of this fraud is reprehensible, not just because of the dollars involved, but because of the position of trust that Ms. McGrady held,” said Special Agent In Charge Kelly. “Her actions denied small businesses the opportunity to compete for these government contracts and that is unacceptable. Today's pleas put corrupt business owners like Ms. McGrade and Mr. Collinsworth on notice, that the government will get to the truth no matter how they try to disguise their business transactions. IRS-CI will continue to work with the United States Attorney and our other law enforcement partners to root out these corrupt business owners.”
McGrade and Collinsworth were indicted on April 25, 2013, by a federal grand jury on charges of conspiracy, major fraud against the government, wire fraud, false statements, and engaging in unlawful monetary transactions. Each defendant faces a maximum penalty of 30 years imprisonment when they are sentenced on November 8, 2013.
In a statement of facts filed with the plea agreement, the defendants admitted that McGrade was a contract employee for the Department of State and performed the role of a contract specialist for an office that awarded construction contracts for work done at U.S. embassies worldwide. Collinsworth worked at one of the companies that received contracts. In 2006, the defendants married, but did not tell others at the Department of State. The defendants started a company, the Sterling Royale Group, or SRG, with McGrade serving as the president and Collinsworth the vice-president and project manager.
In late 2007, McGrade caused a State Department contracting officer to sign a contract between the Department of State and SRG, and McGrade failed to disclose her role in SRG, her marriage, or that proper contracting competitive procedures had not been followed. The contract made SRG eligible to receive task orders for work to be done at embassies and McGrade began steering work to the company. She acted as the contract negotiator between the Department of State engineers responsible for getting the jobs done, on the one hand, and Collinsworth, who was acting on behalf of SRG and the subcontractors, on the other. Between 2008 and 2011, McGrade caused Department of State contracting officers to sign 17 task orders awarding work worth almost $53 million. In 2010, the defendants also lied about their marriage to investigators conducting McGrade’s background investigation regarding renewal of her security clearance.
In the summer of 2011, a news article disclosed the defendants’ marriage and the Department of State terminated her employment. The Department of State, however, had paid SRG about $39 million, and after the defendants had paid their subcontractors, they still had millions of dollars. Among other things, they bought houses, a condominium, a yacht, a Lexus automobile, jewelry, and a Steinway piano with the fraudulently obtained money. The defendants have agreed to forfeit all of those items.
This case was investigated by the Department of State, Office of Inspector General, and the Global Illicit Financial Team, a task force led by the Criminal Investigation Section of the Internal Revenue Service. Assistant United States Attorneys Jack Hanly and Mark Lytle are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Former Iowa City Resident Sentenced to 100 Months in Prison for Conspiracy to Distribute Cocaine BaseRead the Press Release
DAVENPORT, IA – On August 1, 2013, Jeffrey Goins, age 26, was sentenced by United States District Judge John A. Jarvey to 100 months in prison for conspiracy to distribute 280 grams or more of cocaine base, announced United States Attorney Nicholas A. Klinefeldt. Goins was also ordered to serve five years of supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.
Beginning approximately June 2010 and continuing until about March 2, 2012, Goins conspired with others to distribute cocaine base (“crack cocaine”) in the Iowa City, Iowa, area and other locations. In approximately August 2011, Goins and co-defendant Bryant Smith began distributing drugs together and utilized passenger bus lines to transport drugs from Chicago, Illinois, to Iowa City for resale. On January 4, 2012, police in Davenport, Iowa, intercepted about 90 grams of crack cocaine, 128 grams of powder cocaine, and marijuana secreted in luggage on a bus bound from Chicago to Iowa City. Investigation revealed that the luggage belonged to Javon Daniels, a passenger on the bus, who was transporting the drugs on behalf of Goins and Smith. On February 8, 2013, co-defendant Bryan Smith was sentenced to 140 months in prison to be followed by five years of supervised release. On September 14, 2012, Javon Daniels was sentenced to 40 months in prison to be followed by four years of supervised release for possession with intent to distribute 28 grams or more of crack cocaine.
This case was investigated by the Davenport, Iowa, Police Department, the United States Drug Enforcement Administration, and the Iowa City, Iowa, Police Department, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Former Hospice Nurse Sentenced to One Year in Prison for Tampering with Narcotic Pain MedicationRead the Press Release
A 34-year-old nurse from Anacortes, Washington was sentenced today in U.S. District Court in Seattle to one year in prison and three years of supervised release for tampering with consumer products and acquiring a controlled substance by fraud or misrepresentation, announced U.S. Attorney Jenny A. Durkan. ERIN LINVOG, a former nurse at Fidalgo Care Center & Rosario Assisted Living, pleaded guilty in April 2013. At sentencing U.S. District Judge Richard A. Jones said LINVOG “showed reckless disregard of others’ pain and risk of overdose... The only reason you stopped was you were caught... you violated every single notion of what we expect from a nurse.”
According to the facts admitted in the plea agreement, in June 2010, LINVOG began working at the Rosario Assisted Living Center, an elder care facility in Anacortes, Washington, that offers skilled nursing and hospice care to terminally ill patients. LINVOG became credentialed as a registered nurse in November 2011. Sometime in late 2011, LINVOG began stealing narcotics from the facility for her own use. Using her position and authority as a nurse, she requested and received orders for morphine from pharmacies on behalf of Rosario patients, but then diverted entire bottles of narcotics rather than properly logging them into the assigned medicine carts. Moreover, in multiple instances admitted in the plea agreement, LINVOG removed liquid morphine from medicine bottles for her own use, and replaced the missing morphine with tap water, before returning the tampered bottles back to the facility’s medicine carts, where they could have been, and at times were, administered to patients.
The morphine was intended to alleviate the pain of various elderly patients in end-of-life care. LINVOG’s conduct meant that patients near the end of their life were receiving inadequate amounts of medicine to treat their pain and discomfort, and that medical staff did not have a clear picture of the appropriate dosage – since the morphine on hand was diluted. The conduct created the risk that patients could be overdosed if treated with non-diluted medicine, as well as the risk they would suffer needlessly in their final days. LINVOG’s conduct was discovered by the facility in February 2012, which led to her termination shortly thereafter.
At sentencing, Deborah Kelly, the daughter of one of LINVOG’s patients said, “My mom in her last month of life was suffering tremendously… The last year and a half I have been kicking myself that I trusted (LINVOG) to be a better person than she was.”
In asking for a 30 month sentence prosecutors wrote to the court: “Erin Linvog’s offense conduct is egregious, as she knowingly placed highly vulnerable patients at substantial risk of harm and, in some cases, knowingly allowed patients to needlessly suffer…. For the most part, the patients who received diluted pain medication are now deceased and cannot speak for themselves. Thus, families are left largely to speculate as to the consequences of Ms. Linvog’s actions and to question their role in placing their loved ones in such a vulnerable position or in failing to notice foul play. That is a terrible and an unfair position in which to leave these innocent individuals — sons and daughters who entrusted their ailing parent to trained professionals. The final chapter in their memory of the now-deceased loved ones has been forever tainted by the selfish acts of this defendant.”
The case was investigated by the United States Food and Drug Administration, Office of Criminal Investigations, and the Anacortes Police Department. The case is being prosecuted by Assistant United States Attorneys Steven Masada and Jerrod Patterson.
Former FBI Special Agent and Two<br /> Co-Conspirators Charged with Bribery SchemeRead the Press Release
A former FBI agent and two others have been charged in the Southern District of New York with engaging in a bribery scheme to secure confidential, internal law enforcement documents about a prominent individual in Bangladesh.
Acting Assistant U.S. Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York, and Inspector General Michael E. Horowitz of the Department of Justice made the announcement.
Robert Lustyik, 50, a former FBI special agent in the White Plains Resident Agency, is accused in a criminal complaint of conspiring with his friend, Johannes Thaler, 49, of soliciting cash payments from Thaler’s acquaintance, Rizve Ahmed, 34, aka “Caesar,” in exchange for confidential, internal law enforcement documents and information that Lustyik could access by virtue of his position at the FBI. Ahmed and Thaler were arrested today on the charges in the complaint and will be presented later today before U.S. Magistrate Judge George A. Yanthis in the federal court in White Plains. Lustyik is currently detained in connection with an unrelated indictment in U.S. District Court for the District of Utah, where he will be initially presented on the charges in the complaint.
Lustyik, Thaler, and Ahmed are each charged in a four-count complaint. Count one charges Lustyik, Thaler, and Ahmed with conspiring to bribe a public official. Count two charges Lustyik and Thaler with soliciting and receiving bribes. Count three charges Ahmed with bribing a public official and offering to bribe a public official. Count four charges Lustyik with unlawfully disclosing a Suspicious Activity Report.
If convicted, Lustyik, of Westchester County, faces a maximum sentence of 25 years in prison. Thaler, of Fairfield County, Conn., faces a maximum sentence of 20 years in prison. Ahmed, of Fairfield County, faces a maximum sentence of 20 years in prison.
According to allegations in the complaint unsealed today in the White Plains federal courthouse, from about September 2011 through March 2012, Lustyik, Thaler and Ahmed engaged in a bribery scheme on behalf of Ahmed, a native of Bangladesh who sought confidential law enforcement information 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 . . . .” As 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 [***] 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 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.
This case was investigated by the Department of Justice’s Office of Inspector General. The prosecution is being handled by the U.S. Attorney’s Office for the Southern District of New York’s White Plains Division and by the Public Integrity Section of the U.S. Department of Justice’ Criminal Division. Assistant U. S. 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.
Former Erie County Correctional Facility Deputy Sentenced for Violating Civil Rights of InmateRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Josephine Cutolo, 54, of Buffalo, N.Y., who was convicted of deprivation of rights under color of law, was sentenced to one year probation to include six months home detention with electronic monitoring, by U.S. Magistrate Judge Hugh B. Scott.
Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that on August 18, 2012, the defendant, a deputy with the Erie County Sheriff’s Department, was one of several deputies who was present after an altercation involving two inmates. After the altercation was over, and while one of the inmates was in handcuffs, subdued and being escorted by two other deputies, the defendant approached the subdued inmate and sprayed him with O.C. chemical spray, asking how he liked the spray. Cutolo specifically aimed the painful chemical spray a few inches from the victim’s face, resulting in the chemical released spraying the victims face, chin and shoulder area.
The sentencing is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel.Fairbanks Man sentenced to 6 months in prison for tampering with evidenceRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a Fairbanks resident was sentenced in federal court in Fairbanks, Alaska, for his role in a conspiracy to tamper with evidence regarding a drug case.
Brent Gunnels, a/k/a, “BG,” 32, from Fairbanks, Alaska, was sentenced today by U.S. District Court Chief Judge Ralph R. Beistline to 6 months in prison and 2 years of supervised release. Gunnels had previously pled guilty to an indictment charging him and his co-conspirators with one count of conspiracy to tamper with evidence.
According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, Gunnels was a friend of Donnell Johnson. Johnson was arrested for his involvement with a drug conspiracy in January 2012, and he directed Gunnels and others to break into his home located in North Pole, Alaska and remove several incriminating items. On January 28, 2012, Gunnels and others went to Johnson’s residence in North Pole and removed several items from the residence including a drug ledger, a digital scale, and a firearm. Gunnels and the others broke into the home and removed the items before federal law enforcement agents were able to serve a federal search warrant at the residence.
Johnson and his co-defendants are members of a drug trafficking conspiracy that attempted to conceal their drug trafficking by claiming they were involved in a legitimate business and were “artists,” employees, or promoters of an Anchorage recording label and rap and hip hop performance group. Members of this conspiracy would record rap and hip hop songs, post videos on Youtube.com, and perform local shows in Anchorage and Fairbanks. Much of their music glorified the lifestyle of selling illegal narcotics and committing other crimes. The lavish and extravagant lifestyle portrayed in their music and videos was supported by their sales of illegal narcotics.
There was no evidence that Gunnels was involved in Johnson’s drug trafficking conspiracy other
than his removal of items from Johnsons residence in January 2012.Prior to imposing a sentence, Judge Beistline informed the defendant that drug traffickers were poisoning the community, that he had made a choice to interfere with law enforcement and that he chose to help out those trafficking drugs rather than assist law enforcement.
Gunnels was indicted along with 13 other members of the conspiracy located in Anchorage and Fairbanks. Christopher Anderson was previously sentenced to 14 months in prison on November 2, 2012; DeMarr Moultrie was sentenced to 40 months in prison on May 1, 2013; Jeraelyn Hill was sentenced to 66 months in prison on May 28, 2013; Jerry Wormley was sentenced to 36 months in prison on May 31, 2013 and Rock Phelps II was sentenced to 18 months in prison on June 14, 2013. Donnell Johnson, Joshua Mustovich, Mihla Hall, Antonio Fleming, Dalon Johnson, Tevoris Carter, and Emma Shine, have plead guilty for their roles in connection with the conspiracy and await sentencing. Terrance Fleming has a pending trial scheduled in August 2013.
Ms. Loeffler commended the Federal Bureau of Investigation, the Drug Enforcement Administration, the United States Postal Service, the Internal Revenue Service Criminal Investigation Division, and the Anchorage Police Department for the investigation leading to the successful prosecution of GunnelsDothan Man Sentenced to 90 Months for Securities Fraud SchemeRead the Press Release
Montgomery, Alabama - Montgomery, Alabama - Edward Lincoln Forehand, age 68, of Dothan, Alabama, was sentenced today to 90 months on his convictions for securities fraud, mail fraud, wire fraud, and money laundering, announced the U.S. Attorney’s Office for the Middle District of Alabama and the Alabama Securities Commission (ASC).
Between 2006 and November 2009, Forehand, used the business name “USA Marketing,” to solicit investments from people, mainly in South Alabama and the Florida Panhandle. Forehand told investors that he had a relationship with an individual, Vicky Yeager. Yeager had a business, Elite Marketing (“Elite”), which had agreements with colleges and universities to sell them cookware. Forehand solicited investments in Elite from his victims. He promised the victims extraordinarily high rates of return on their investment in Elite (up to 700%).
Rather than sending all of the investors’ money to Elite, Forehand used large amounts of the money to pay prior investors and to buy property and other items for himself. In particular, during the period from 2006 to November 2009, Forehand received $6.2 million from investors but only sent $1,605,790 to Elite. Meanwhile, Forehand promised to pay out to investors over $19 million.
Forehand also failed to disclose that in August 2009, six checks from Elite to USA Marketing totaling $600,000 bounced, that Elite never made good on the checks, and that from that point forward, Forehand stopped sending any investor money to Elite. Forehand also concealed Yeager’s true identity and the fact that Yeager had two prior criminal convictions for fraudulent conduct.
On November 10, 2009, Yeager died. After Yeager’s death, Forehand paid no further funds to investors, and 87 investors lost approximately $2,991,654 of the monies they had given Forehand to invest in Elite.
“The sentence today vindicates the victims who lost money due to Edward Forehand’s fraud. His 90-month term of imprisonment provides a necessary punishment for his role in orchestrating and carrying out a years-long, multimillion-dollar Ponzi scheme that caused significant losses to well over 100 individuals,” stated Louis V. Franklin, Criminal Chief at the U.S. Attorney’s Office.
Alabama Securities Commission Director Borg said, “We are very pleased with the sentence handed down by the Court today. We believe Judge Thompson sent a clear message to those people who are planning on or thinking about engaging in financial scams that such behavior will not be tolerated. We are proud to have been able to work with the U.S. Attorney for the Middle District of Alabama and the FBI to bring Forehand to justice.”
The case was investigated by Special Agents of the Alabama Securities Commission, the FBI and the Dothan Police Department with special help from the United States Marshal Service. The case was prosecuted by Special Assistant United States Attorneys Steve P. Feaga and Gregory M. Biggs of the Alabama Securities Commission, and Assistant United States Attorneys Jared Morris and Tommie B. Hardwick.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Dominican Man Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Dominican man was sentenced yesterday for illegally re-entering the United States after previously being deported to the Dominican Republic.
Lenny Soto-Mateo, 30, was sentenced by U.S. District Judge Nathaniel M. Gorton to 21 months in prison, followed by three years of supervised release.In 2007, Soto-Mateo was convicted in U.S. District Court of aggravated identity theft and making false statements in application for a United States passport, and was sentenced to 25 months in prison. Following the completion of his sentence, Soto-Mateo was placed into removal proceedings and was deported back to the Dominican Republic. In 2009, Soto-Mateo was encountered by ICE officials in Louisiana. Soto-Mateo was charged in U.S. District Court in Western Louisiana with illegal reentry of a previously deported alien, and was sentenced to 15 months in prison. Following the completion of his sentence, Soto-Mateo was placed into removal proceedings and was deported to the Dominican Republic.
In 2012 immigration officials encountered Soto-Mateo following his arrest by the Boston Police Department. Soto-Mateo’s fingerprints were examined and determined to be a positive match on the two prior deportation warrants. Soto-Mateo was transferred into ICE custody and charged in the District of Massachusetts with illegal reentry.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
District Man Sentenced to 27 Years in Prison for 2011 Slaying in Northwest WashingtonRead the Press Release
-Victim, 19, Was Shot Four Times in an Attempted Robbery-
WASHINGTON – Rashid Caviness-Bey, 20, of Washington, D.C., was sentenced today to 27 years in prison for a murder that took place during an attempted armed robbery in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Caviness-Bey was found guilty in June 2013 by a jury in the Superior Court of the District of Columbia of charges of second-degree murder while armed and carrying a pistol without a license in the slaying of 19-year old Osman Al-Akbar. He was sentenced by the Honorable Lynn Leibovitz. Upon completion of his prison term, Caviness-Bey will be placed on five years of supervised release.
According to the government’s evidence, on Aug. 17, 2011, at about 1:30 a.m., Mr. Al-Akbar bicycled toward his home after visiting his girlfriend’s house. As he was riding home, he talked on his cell phone with his girlfriend. At the same time, Caviness-Bey and two teenagers emerged from Girard Park near the 2600 block of University Place NW. They carried two guns and dressed in a manner to conceal themselves.
Mr. Al-Akbar encountered Caviness-Bey and the two teenagers in the 2600 block of University Place NW, where they tried to rob him. During the encounter, Mr. Al-Akbar was shot three times in the back. After he fell to the street, dying, he was shot a fourth time in the face with a second gun. Mr. Al-Akbar died in the street next to his bicycle and personal belongings, which were scattered around him.
Caviness-Bey and the teenagers fled after the shooting. One of the teenagers and Caviness-Bey fled into a dead-end alley behind an apartment building at the corner of 15th and Fuller Streets NW. Along the way, witnesses saw them discard the clothing they had worn to conceal themselves during the robbery. One of the witnesses also spotted them with a gun. The witness alerted the police to the alley that Caviness-Bey and the teenager ran into. The police found Caviness-Bey and the teenager hiding at the bottom of a basement stairwell. Nearby, the police found the two guns used to kill Mr. Al-Akbar. The police also found the discarded clothing in the alley and in the trash receptacles near the alley.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives of the Criminal Investigations Division, crime scene officers, and the Third Police District of the Metropolitan Police Department, and the U.S. Park Police. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Michael Ortwein (now with the U.S. Attorney’s Office for the Eastern District of Michigan), who secured the indictment in the case; Criminal Investigator Durand Odom; Jelahn Stewart, Michael Hailey, David Foster, Marcia Rinker, Melissa Milam, and Christina Principe, all of the Victim Witness Assistance Unit; Kimberly Smith, William Henderson, and Leif Hickling of the Litigation Technology Unit, Paralegal Specialists Marian Russell and Ethel Noble, and Librarian Lisa Kosow. Finally, he praised the efforts of Assistant U.S. Attorney Shana L. Fulton who tried the case.
13-275Detroit One Collaboration Leads to Indictment of Violent Drug Gang in Northwest DetroitRead the Press Release
The collaboration of local, state, and federal law enforcement under the Detroit One program is beginning to show dividends with the investigation, indictment, and arrests of a violent, armed drug gang located in northwest Detroit, United States Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Daryl McCrary, Acting Special Agent in Charge of the Detroit Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Detroit Police Chief James E. Craig.
The indictment unsealed today charges three brothers, Mohamed, Abed, and Fouad Faraj, with distributing marijuana and prescription pills on the 6800 block of Rutherford Street and the greater Warrendale neighborhood in the city of Detroit. The criminal enterprise led by the Faraj brothers employed numerous teenagers and young men to act as their street level distributors. These young workers regularly had access to firearms supplied by the leaders and used arson as a tactic to create stash houses and to further the enterprise’s narcotics distribution activities. Among those charged today are:
- Mohamed Faraj, 29, of Dearborn Heights, charged with continuing criminal enterprise, conspiracy to possess with intent to distribute controlled substances, possession of firearms in furtherance of narcotics trafficking, and use a telecommunications device in furtherance of narcotics trafficking;
- Abed Faraj, 38, of Detroit, charged with continuing criminal enterprise, conspiracy to possess with intent to distribute controlled substances, and possession of firearms in furtherance of narcotics trafficking;
- Fouad Faraj, 43, of Dearborn Heights, charged with continuing criminal enterprise, conspiracy to possess with intent to distribute controlled substances, and possession of firearms in furtherance of narcotics trafficking;
- Mohammed Abdul Alhakami, 22, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances and possession of firearms in furtherance of narcotics trafficking;
- Ali Al-Hisnawi, 20, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances; and
- Adnan Bazzi, 28, of Dearborn, charged with conspiracy to possess with intent to distribute controlled substances, possession of firearms in furtherance of narcotics trafficking, and felon in possession of a firearm.
“Detroit One is bringing a unified focus to arresting violent offenders in Detroit," McQuade said. "Dismantling violent drug gangs will help restore peace in our neighborhoods."“We know that illegal narcotics and firearms are a major threat to the safety of our citizens and to law enforcement officers,” said Acting ATF Special Agent in Charge Daryl McCrary. “Today’s operations and arrest warrants highlight ATF’s and our law enforcement partners’ effort to remove armed violent drug dealers from our streets. We are committed to reducing violent crime and this case emphasizes a repetitive problem of illegal narcotics traffickers willing to use and carry firearms to protect their drug proceeds,” McCrary added.
“This is the perfect example of law enforcement teamwork,” said Chief James E. Craig. “Working with our local, state, federal law enforcement agencies has and will continue to enhance our crime-fighting efforts in providing a safe environment for visitors and residents of the city of Detroit.”
Detroit One is a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. By working cooperatively, local, state, and federal law enforcement agencies are maximizing their ability to identify and arrest the individuals and groups committing violent crime.
In this case, investigators were able to share information and resources to identify the leaders and key members of this organization, leading to charges against six individuals in federal court. The case was initiated by the Comprehensive Violence Reduction Partnership, consisting of representatives of the Detroit Police Department, Michigan State Police, Michigan Department of Corrections, and ATF, and assisted by the Federal Bureau of Investigation, Homeland Security Investigations, and Internal Revenue Service.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government's burden to prove guilty beyond a reasonable doubt.
Department of Justice Proposes Remedy to Address<br /> Apple’s Price FixingRead the Press Release
The Department of Justice and 33 State Attorneys General today submitted to the court a proposed remedy to address Apple Inc.’s illegal conduct, following the July 10, 2013, U.S. District Court for the Southern District of New York decision finding that Apple conspired to fix the prices of e-books in the United States. The proposed relief is intended to halt Apple’s anticompetitive conduct, restore lost competition and prevent a recurrence of the illegal activities.
“The court found that Apple’s illegal conduct deprived consumers of the benefits of e-book price competition and forced them to pay substantially higher prices,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “Under the department’s proposed order, Apple’s illegal conduct will cease and Apple and its senior executives will be prevented from conspiring to thwart competition in the future.”
The department’s proposal, if approved by the court, will require Apple to terminate its existing agreements with the five major publishers with which it conspired – Hachette Book Group (USA), HarperCollins Publishers L.L.C., Holtzbrinck Publishers LLC, which does business as Macmillan, Penguin Group (USA) Inc. and Simon & Schuster Inc. – and to refrain for five years from entering new e-book distribution contracts which would restrain Apple from competing on price. Under the department’s proposed remedy, Apple will be prohibited from again serving as a conduit of information among the conspiring publishers or from retaliating against publishers for refusing to sell e-books on agency terms. Apple will also be prohibited from entering into agreements with suppliers of e-books, music, movies, television shows or other content that are likely to increase the prices at which Apple’s competitor retailers may sell that content. To reset competition to the conditions that existed before the conspiracy, Apple must also for two years allow other e-book retailers like Amazon and Barnes & Noble to provide links from their e-book apps to their e-bookstores, allowing consumers who purchase and read e-books on their iPads and iPhones easily to compare Apple’s prices with those of its competitors.
Additionally, the Department of Justice is asking the court to appoint an external monitor to ensure that Apple’s internal antitrust compliance policies are sufficient to catch anticompetitive activities before they result in harm to consumers. The monitor, whose salary and expenses will be paid by Apple, will work with an internal antitrust compliance officer who will be hired by and report exclusively to the outside directors comprising Apple’s audit committee. The antitrust compliance officer will be responsible for training Apple’s senior executives and other employees about the antitrust laws and ensuring that Apple abides by the relief ordered by the court.
On April 11, 2012, the department filed a civil antitrust lawsuit in the U.S. District Court for the Southern District of New York against Apple, Hachette, HarperCollins, Macmillan, Penguin and Simon & Schuster, for conspiring to end e-book retailers' freedom to compete on price by taking control of pricing from e-book retailers and substantially increasing the prices that consumers paid for e-books.
At the same time that it filed the lawsuit, the department reached settlements with three of the publishers – Hachette, HarperCollins and Simon & Schuster. Those settlements were approved by the court in September 2012. The department settled with Penguin on Dec. 18, 2012, and with Macmillan on Feb. 8, 2013. The Penguin settlement was approved by the court in May 2013. Final approval of the Macmillan settlement is pending before the court. Under the settlements, each publisher was required to terminate agreements that prevented e-book retailers from lowering the prices at which they sell e-books to consumers and to allow for retail price competition in renegotiated e-book distribution agreements.
The department’s trial against Apple, which was overseen by Judge Denise Cote, began on June 3, 2013. The trial lasted for three weeks, with closing arguments taking place on June 20, 2013. The court issued its opinion that Apple Inc. violated Section 1 of the Sherman Act on July 10, 2013. The court will hold a hearing on remedies on Aug. 9, 2013.Deleon Springs Man Pleads Guilty to Armed Bank RobberyRead the Press Release
Orlando, Florida - Acting United States Attorney A. Lee Bentley, III announces that Robert Gordon Shaw (37, Deleon Springs) pleaded guilty yesterday to one count of armed bank robbery. Shaw faces a maximum penalty of 25 years in federal prison.
According to the plea agreement, on April 19, 2013, Shaw and a separately charged individual named Matthew Anthony Cosimini robbed a Regions Bank in Sanford. They displayed a fake explosive detonation device and passed a note to a bank teller demanding money and indicated that an explosive had been placed inside the bank. During the robbery, Shaw and Cosimini also possessed a semiautomatic pistol with ammunition. After Shaw passed the demand note and displayed the detonation device, the bank teller handed Shaw approximately $14,098 in bank money. After the robbery, Shaw and Cosimini fled in a stolen vehicle and responding officers from the Sanford Police Department pursued them. During the pursuit, Shaw caused damage to both a police vehicle and a civilian's vehicle. Police officers eventually stopped and arrested Shaw and Cosimini one mile from the bank. The officers also recovered the firearm and detonation device from the stolen vehicle. Further investigation revealed that the detonation device was a fake and that there were no explosives inside the bank.
This case was investigated by the Federal Bureau of Investigation with assistance from the Sanford Police Department and the Seminole County Sheriff's Office. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
Defendant Possessing Child Pornography SentencedRead the Press Release
Michael JMoore, United States Attorney for the Middle District of Georgia, announced that Michael Dawes Hall, age 25, a resident of Tifton, Georgia, was sentenced on July 29, 2013 by the Honorable Hugh Lawson in United Sates District Court, Valdosta Division, to sixty-one (61) months imprisonment, to be followed by twenty-five (25) years supervised release.Mr. Hall entered a plea of guilty on July 29, 2013 to Possession of Child Pornography. He admitted to possessing computers containing visual depictions of minors engaging in sexually explicit conduct. A "cyber tip" provided by the National Center for Missing and Exploited Children from an internet service provider associated Hall's e-mail address to uploading images and a video of child exploitation onto an online social networking group. These images involved prepubescent minors and minors under the' age of twelve (12) years and depicted minors engaged in sexual conduct of a sadistic and masochistic nature.
U.S. Attorney Michael Moore said, "Every time Mr. Hall looked at these images and every time he uploaded the pictures and videos, here-victimized these children. My office will use every resource we have to find and prosecute defendants like Mr. Hall. After all, if we are not willing to fight to protect our kids, what is worth fighting for?''
The case was investigated by the Federal Bureau of Investigation (FBI) and was prosecuted by Assistant United States Attorney Robert D. McCullers for the Government.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Defendant Possessing Child Pornography SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Otto G. Pena, age 46, a resident of Valdosta, Georgia and Hialeah, Florida, was sentenced on July 29, 2013 by the Honorable Hugh Lawson in United States District Court, Valdosta Division, to 120 months imprisonment, followed by twenty-five (25) years of supervised release.
Mr. Pena entered a plea of guilty on July 29, 2013 to Possession of Child Pornography. Court records showed that a search conducted on Mr. Pena's residence revealed numerous computers containing images of minors engaged in sexually explicit conduct. Mr. Pena admitted that he was in possession of more than 600 images of child pornography, that the images on the computers had been mailed, shipped or transported in interstate and foreign commerce and that the depictions of the minors engaging in sexually explicit conduct were produced using materials which had been mailed, shipped, or transported by means of interstate and foreign commerce. Evidence was presented at sentencing showing that Mr. Pena had also engaged in a pattern of activity involving sexual abuse and exploitation of a minor.
U.S. Attorney Michael Moore said, "Mr. Pena re-victimized the children in these images every time he looked at the pictures. Possession of this disgusting material is not a victimless crime, and Mr. Pena, or anyone else who exploits children in Middle Georgia, need to know that we will use every resource we have to make sure they go to federal prison."
The case was investigated by the Georgia Bureau of Investigation, the Lowndes County Sheriff's Office, the Southern Judicial Circuit District Attorney's Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and was prosecuted by Assistant United States Attorney Robert D. McCullers for the Government.Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Dallas Man Is Sentenced to 30 Years in Federal Prison and Ordered to Pay Nearly $4 Million in Restitution on Multiple Fraud ConvictionsRead the Press Release
Fraudster Was Found Guilty of Running an Investment Fraud Scheme While Awaiting Sentencing on a Prior Securities Fraud Conviction
DALLAS — Joshua Wayne Bevill, 33, of Dallas, was sentenced yesterday afternoon by U.S. District Judge Jane J. Boyle to a total of 30 years in federal prison and ordered to pay nearly $4 million in restitution for his conviction in January 2011 on one count of securities fraud and for his conviction in April 2013 for crimes he committed while awaiting sentencing on that conviction, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
For the 2011 conviction, Judge Boyle sentenced Bevill to the statutory maximum sentence of five years’ imprisonment. In documents filed when he pleaded guilty, Bevill admitted that between 2005 and 2008, he and various associates raised several million dollars from investors by selling interests in supposed oil and gas development projects. Bevill, however, was simply stealing investors’ money rather than using it to earn profits in the oil and gas business. He pleaded guilty to one count of securities fraud and admitted that he defrauded numerous investors of more than $750,000.
While awaiting sentencing on that case, Bevill perpetrated a similar scheme from August 2010 until February 2011 under the name of Progressive Investment Partners. Bevill contacted potential investors and sold them investments in a supposed oil and gas business. As part of his scheme, Bevill used fictitious references that were set up to provide “glowing” reviews and exemplify the merits of investing with Progressive Investment Partners. Bevill, however, simply stole investors’ money and spent it to pay for his lavish lifestyle. The court ordered his arrest and detention in late February 2011, and he has been in custody since that time.
On April 8, 2013, following a bench trial on those crimes, Bevill was adjudged guilty on one count of mail fraud, two counts of securities fraud and one count of wire fraud, and committing each offense while on release. For these convictions, Judge Boyle sentenced Bevill to 20 years’ imprisonment on each count, plus five additional years under 18 U.S.C. § 3147 for committing the offenses while on bond. Each of the sentences from the 2013 conviction was ordered to run concurrent to each other, and the five-year term from the 2011 conviction was to run consecutive, for a total term of imprisonment of 30 years. In addition, the more than $100,000 remaining in Bevill’s business bank account seized by the FBI was ordered forfeited to the United States.
These cases were prosecuted in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s 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.
The FBI investigated the cases. Assistant U.S. Attorneys J. Nicholas Bunch and Joseph Revesz prosecuted.
Conway Businessman Found Guilty This Week of Filing False Tax ReturnsRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Nashville Field Office, announced that on Tuesday, July 30, 2013, a federal jury found Richard C. Mathews of Conway guilty of five counts of filing false tax returns and one count of interfering with the due administration of justice.
"This verdict sends a message that tax violations are serious crimes against the American public. The IRS is committed to investigate and recommend for prosecution those who provide false statements and corruptly obstruct the administration of our nation's tax laws," said Henry.
After a two day trial, a jury deliberated for two hours before returning guilty verdicts on all six counts charged in a Superseding Indictment filed July 11, 2012. According to the Indictment and testimony at trial, Mathews was self-employed operating a business soliciting members for a $99 joining fee into his system of making money by getting more members to join his online multi-level marketing network known as MMS and Wealth Team International (WTIA). The more people a member solicited to join MMS or WTIA, the more money the members and Mathews could make. Mathews stated on his federal tax returns that he had gross receipts of $22,201 for the five year period from 2004 to 2008, when in fact his bank records showed business deposits of $245,300.42.
Mathews is out on bond and continues to operate his businesses. He faces a statutory maximum of 3 years in the Bureau of Prisons and up to a $100,000 fine on each count. Mathews will be sentenced at a later date to be set by the court.
This case was investigated by Internal Revenue Service - Criminal Investigations. The case was prosecuted by First Assistant United States Attorney Patrick C. Harris and Assistant United States Attorney Jamie Dempsey.
by making false allegations about the actions of the Special Agents and Revenue Officers of the IRS
Conspirator Sentenced for Possession of Stolen U.S. Treasury ChecksRead the Press Release
Michael JMoore, United States Attorney for the Middle District of Georgia, announced that Sherry Lynn Osborne, age 45, a resident of Tifton, Georgia, was sentenced in the U.S. District Court, Valdosta Division, on July 29, 2013 by the Honorable Hugh Lawson to thirty seven (37) months imprisonment. Judge Lawson also ordered Ms. Osborne to pay $735,454.75 in restitution.
Ms. Osborne entered a plea of guilty on February 25, 2013, to conspiracy to Possess Stolen U.S. Treasury Checks, Uttering Forged Securities and Embezzling Public Monies. In her plea, Ms. Osborne admitted to receiving and depositing stolen and fraudulently obtained tax refund checks or fraudulently obtained refund anticipation loan checks into her bank accounts and then withdrawing the proceeds, retaining a portion for herself and providing the rest to the individual who had originally provided her with the checks. Court records showed that Ms. Osborne admitted that she deliberately avoided knowing the specific source and nature of the checks even though she should have known this information. In total, from September to November 2011, Ms. Osborne presented approximately $1,200,000 in stolen and fraudulent tax refund checks and refund anticipation loan checks for deposit into her accounts.
"When Ms. Osborne stole from the Treasury, she stole from us all. My office will continue to use our efforts to enforce the law. This case should remind people of the lesson we were all taught as children cheaters never win," said U.S. Attorney Michael Moore.
The case was investigated by the United States Secret Service and the Tift County Sheriffs Office, and was prosecuted by Assistant United States Attorney Robert D. McCullers for the Government.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Columbus Man Convicted of Gun and Drug CrimesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
A U.S. District Court jury in Columbus, Ohio convicted Jack A. Morris, 37, of Columbus of gun and drug trafficking crimes. Morris faces a mandatory minimum sentence of 30 years.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Robin Shoemaker, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Columbus Field Division (ATF), and Gahanna Police Chief Dennis Murphy announced the verdict returned today following a trial that began July 29 before U.S. District Judge Gregory L. Frost.Trial testimony showed that Morris and others supplied street level distributors of marijuana, cocaine and oxycodone with firearms and body armor as a way of protecting themselves from potential robberies. Morris also placed firearms in strategic locations throughout his house in order to intimidate potential robbers and protect the narcotics and proceeds kept at the house.
The jury convicted Morris of one count of conspiracy to distribute oxycodone, two gun counts, and nine counts of illegally trafficking marijuana and oxycodone.
Two others indicted with Morris in April 2013, Jeremy S. Baker, 25, of Blacklick, and Judy L. Kindle, 45, of Columbus, pleaded guilty to charges of conspiracy and possession with intent to distribute oxycodone. Christopher Wilcox, 30, of Reynoldsburg, pleaded guilty to supplying firearms including an AK-47 and an AR-15, knowing that the weapons were to be used in the drug trafficking.
Judge Frost will schedule a date for sentencing. Morris has been in custody since his arrest in May 2013.
U.S. Attorney Stewart commended the investigation conducted by ATF and the Gahanna Police officers, and Assistant U.S. Attorney David DeVillers and Special Assistant U.S. Attorney Steve Dunbar with Columbus City Attorney Rick Pfeiffer’s Office, who are representing the United States in the case.
Colonial Heights Man Sentenced for Coercion and Enticement of A Minor and Receipt of Child PornographyRead the Press Release
RICHMOND, Va. – Robert Kropp, 26, of Colonial Heights, Va., was sentenced today for coercion and enticement of a minor under the age of fifteen and receipt of child pornography. Kropp was sentenced to 120months in prison on each of the two counts, to run concurrently, followed by 20 years of supervised release on each count. In addition, Kropp was assessed a fine of $15,000.00.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia and Jeffery C. Mazanec, Special Agent in Charge of the Federal Bureau of Investigation’s Richmond Field Office, made the announcement after sentencing by United States District Judge Henry E. Hudson.
Kropppled guilty on May 7, 2013, to coercion and enticement of a minor under the age of fifteen and receipt of child pornography. According to court documents, in March 2013, Kropp began corresponding by email with an individual he believed to be a prostitute. Kropp initially inquired of the prostitute whether she knew of any minors with whom he could engage in sexual activity. Through these communications, Kropp was informed that the individual with whom he was corresponding knew a thirteen-year-old female.
Also in March 2013, Kropp used his cell phone to send text messages and make telephone calls to engage in sexually explicit conversations with an individual he believed to be a thirteen-year-old female. Kropp discussed specific sex acts that he would like to engage in with her and directed the minor to a website where she could obtain pornography to prepare for the encounter.On March 7, 2013, Kropp arrived at a hotel where he believed he would be meeting the minor. Kropp had $200.00 in his pocket, which he intended to use to pay for the sexual encounter with the minor. Kropp was arrested by law enforcement after entering the hotel and proceeding to the floor where he believed the minor’s room to be.
Kropp admitted to downloading child pornography on his computer. A subsequent forensic search of his computer revealed numerous images of child erotica and child pornography.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Angela Mastandrea-Miller prosecuted the case on behalf of the United States.Cedar Rapids Man Pleads Guilty to Receiving and Possessing Child PornographyRead the Press Release
A man who downloaded and possessed child pornography pled guilty on August 1, 2013, in federal court in Cedar Rapids.
Brian Lynch, age 47, from Cedar Rapids, was convicted of one count of receipt of child pornography and one count of possession of child pornography.
At the plea hearing, Lynch admitted that, between March 2010 and March 2013, he used the Internet to download child pornography. He also admitted that, between November 2004 and April 2013, he possessed child pornography. In a plea agreement, Lynch admitted that he possessed over 350 videos and over 175 images of child pornography, including depictions of prepubescent children.Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Lynch was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Lynch faces a possible maximum sentence of 40 years’ imprisonment, a $500,000 fine, a $200 special assessment, and supervised release for 5 years to life following his imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the DeWitt Police Department, the Cedar Rapids Police Department, and the United States Marshals Service.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 13-29.
Cedar Rapids Man Charged with Federal Child Pornography OffensesRead the Press Release
Jason Smith, age 20, of Cedar Rapids, Iowa, has been indicted on federal child pornography charges. The charges are contained in an Indictment unsealed July 26, 2013, in United States District Court in Cedar Rapids.
The Indictment alleges that, between 2011 and 2013, Smith distributed, received, and possessed child pornography.
If convicted on all charges, Smith faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 50 years’ imprisonment, a $750,000 fine, a $300 special assessment, and at least 5 years and up to life on supervised release following any imprisonment.
Smith appeared for a detention hearing on July 31, 2013, in federal court in Cedar Rapids and was held without bond. Smith’s next appearance for trial is set for September 23, 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 Iowa Division of Criminal Investigation, the Federal Bureau of Investigation, and the Cedar Rapids 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 13-54.
California Man Charged in Multi-Million Dollar Mortgage FraudRead the Press Release
Steven Pitchersky, 64, of Rancho Mirage, California, was charged today by Information with one count of wire fraud, announced United States Attorney Zane David Memeger. Pitchersky, who operated Nationwide Mortgage Concepts, a California mortgage lender, is accused of engaging in a scheme to defraud Ally Bank that caused the bank a loss of approximately $5.3 million.
If convicted the defendant faces a maximum possible sentence of 20 years imprisonment, three years supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Office of the Special Inspector General for the Troubled Asset Relief Program, and the Department of Veterans Affairs Office of Inspector General, and is being prosecuted by Assistant United States Attorney David L. Axelrod.Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Bullhead Man Charged with Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bullhead, South Dakota, man has been indicted by a federal grand jury.
Archambault was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Derek Archambault, a/k/a John Martinez, age 30, was indicted on July 17, 2013, on four counts of Domestic Assault By An Habitual Offender.
The maximum penalty upon conviction is 5 years' custody, a $250,000 fine or both; a period of supervised release of 3 years; and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations and Archambault is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Special Assistant U.S. Attorney Erin Shanley is prosecuting the case.
Thursday 1 August 2013
Woman Pleads Guilty to Theft of Government FundsRead the Press Release
ATLANTA - Mary Bridges Clark has pleaded guilty in federal district court to theft of government funds.
“Theft of Social Security funds is, at its core, stealing from the elderly, the disabled, and those with the greatest need,” United States Attorney Sally Quillian Yates. “This defendant stole over $200,000 in Social Security benefits that were intended for her mother for nearly two decades after her mother passed away, even though she knew she was not entitled to them.”According to United States Attorney Yates, the charges and other information presented in court: Clark’s mother received monthly Social Security benefits which were deposited into a joint bank account Clark and her mother shared. Clark’s mother died in April 1993. After her mother’s death, Clark continued to receive her mother’s monthly benefits into the joint account. In total, the United States Treasury, acting on behalf of the Social Security Administration, deposited $219,133.00 into the joint account after her mother’s death. Clark knew this money was intended for her mother, yet she kept the money and used it for her own personal expenses, and attempted to conceal her mother’s death from the Social Security Administration.
Clark, 64, of Loganville, Ga., was charged in a Criminal Information on July 17, 2013, on one count of theft of government funds and pleaded guilty to that count. She could receive a maximum sentence of 10 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Sentencing is scheduled for October 21, 2013, at 3 p.m. before United States District Judge Carnes.
This case is being investigated by Special Agents of the Social Security Administration, Office of Inspector General.
Assistant United States Attorney Glenn D. Baker and Special Assistant United States Attorney Diane C. Schulman are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Willimantic Man Indicted for Escaping from Halfway HouseRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that a federal grand jury sitting in Hartford returned an indictment today charging SAMUEL VASQUEZ, 26, formerly of Willimantic, with escape from the custody of the Attorney General.
The indictment alleges that, on July 12, 2013, VASQUEZ escaped from custody at Watkinson House Residential Reentry Center in Hartford.
VASQUEZ had been confined to Watkinson House RRC to complete his term of incarceration after being convicted in 2011 in U.S. District Court of unlawful dealing in firearms.
If convicted, VASQUEZ faces a maximum term of imprisonment of five years and a fine of up to $250,000.
VASQUEZ was arrested in Willimantic on July 25, 2013 and is currently detained.
Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the United States Marshals Service and is being prosecuted by Assistant United States Attorney Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Westport Woman Sentenced to Prison for Embezzling More Than $1.8 Million from Foundations, EmployerRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that SOOZI FOLSOM, 55, of Westport, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 46 months of imprisonment, followed by five years of supervised release, for embezzling more than $1.3 million from three charitable foundations, and approximately $500,000 from her employer.
According to court documents and statements made in court, FOLSOM worked as the financial manager for a Westport-based accounting and law firm that had been retained by three charitable foundations. From approximately September 2008 to November 2011, she generated at least 124 fraudulent checks drawn on the bank accounts of the foundations and made payable to “Groundhog, LLC,” an entity she controlled. FOLSOM forged the signature on the fraudulent checks, signing the name of an individual with signatory authority on the foundations’ bank accounts, and then converted the monies to her own personal use. FOLSOM covered up the fraud by manipulating transactions in the accounting software systems that handled the foundations’ accounting and bookkeeping. Through this scheme, FOLSOM stole more than $1.3 million from bank accounts belonging to the three charitable foundations.
The investigation also revealed that FOLSOM had embezzled approximately $500,000 from her employer.
Judge Bryant ordered FOLSOM to pay restitution in the total amount of $1,836,973.11.
On September 17, 2012, FOLSOM waived her right to indictment and pleaded guilty to one count of bank fraud. She has been detained since that date.
This matter was investigated by the United States Secret Service and the Westport Police Department. The case was prosecuted by Assistant United States Attorney Susan Wines.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Washington Park Man Pleads Guilty to Firearm OffenseRead the Press Release
On July 31, 2013, Terrell A. Rey, a twenty-eight year old Washington Park, IL, man pled guilty in United States Federal District Court, in East St. Louis, IL, to unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Rey is scheduled for sentencing on November 8, 2013, at which time he faces a maximum sentence of 10 years in prison, a fine of up to $250,000, not more than 3 years supervised release, and a mandatory special assessment of $100. Rey also agreed to forfeit the firearm.
Facts brought out in open court were that on October 28, 2012, police officers responded to Rey’s home regarding a reported incident. The officers announced themselves and encountered Rey just inside the front door of residence, at which point they observed a firearm in his back pants pocket. Rey was taken into police custody, interviewed and read his Miranda rights. He admitted to possessing a firearm, knowing he was a previously convicted felon.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Washington Park Police Department, and is assigned to Special Assistant United States Attorney Neal C. Hong.
Victims of Largest Fraud Case Prosecuted in Southern District of Georgia Receive over $27 Million in RestitutionRead the Press Release
Assets of Defendants convicted in U.S. v. Bradley also used to satisfy $39.5 million forfeiture order and approximately $15 million in fines
SAVANNAH, GA – United States Attorney Edward J. Tarver announced today the payment of over $27 million in restitution to the victims of the largest fraud case ever prosecuted in the Southern District of Georgia, United States v. Martin J. Bradley III, et al., Case No. 405-059 (S.D. Ga.).
The Bradley case involved the dismantling of a criminal enterprise dealing in blood derivative prescription drugs obtained by fraud and through the black market, then resold through Bio-Med Plus (Bio-Med), then the largest privately held secondary wholesaler of blood derivatives in the country. Martin Bradley III and Martin Bradley, Jr. were the leaders of the corrupt enterprise who orchestrated fraud schemes from Georgia to Florida to California, Puerto Rico, the Bahamas, and elsewhere, with shell companies and offshore accounts used to perpetrate and conceal the schemes. After a lengthy investigation, a grand jury sitting in Savannah returned a 288-Count RICO indictment alleging a dozen different schemes to defraud Medicare, Medicaid programs, drugs manufacturers and others of tens-of-millions of dollars worth of prescription drugs essential to the lives of cancer patients and those suffering from AIDS, hemophilia and other illnesses. After a six-week trial held in Savannah, the jury convicted the Bradleys and Bio-Med of racketeering, money laundering and related charges. Bio-Med was forfeited to the Government and the Bradleys received stiff prison sentences, 25 years for Bradley III and 15 years for Bradley, Jr. The Court also entered a restitution order of over $27.8 million; a forfeiture judgment of $39.5 million; and fines totaling over $30 million against the Bradleys and Bio-Med.
A federal receiver was appointed to liquidate the assets of the Bradleys after their convictions. More than $60 million in assets were liquidated, including jet planes, automobile
collections, yachts, vacation homes and office buildings. As part of the liquidation, the assets of Bio-Med were also sold.After the Defendants’ direct appeal rights were exhausted, the Government moved the Court to direct that restitution be made to all victims of the Bradley case. As a result, the Clerk of Court for the Southern District of Georgia this week forwarded United States Treasury checks in the following amounts to the following victims: $2,738,373.50 to Medicare; $10,117,601.03 to Florida Medicaid; $10,419,801.96 to the Genetically Handicapped Persons Program; $2,260,514.01 to Medi-Cal; and, $353,338.52 to Blue Shield of California. An additional $1,907,975.53 will be provided to the SCEET. In addition to the payments of restitution, proceeds from the liquidation of the Bradleys’ assets have been used to satisfy the $39.5 million forfeiture judgment and approximately $15 million of the fines imposed.
United States Attorney Edward Tarver stated, “Restitution payments made this week to the victims of the Bradley case represent the largest payment of restitution in the history of the Southern District of Georgia. This is the culmination of an enormous effort by agents and prosecutors to put an end to a corrupt enterprise that sold prescription drugs with fabricated pedigrees and unknown histories to hospitals, pharmacies and doctors nationwide. No matter how complex the scheme, our mission is to investigate and prosecute criminal enterprises intent upon stealing from the taxpayers of the United States. Let this case serve as notice to any would-be fraudster that the end of the road not only involves a lengthy prison sentence but also the return of your ill-gotten gains.”
The investigation of the Bradley case was led by FDA-OIG Special Agent Pamela Chambers and IRS-CI Special Agent Michael Palmer. Agents with ICE Homeland Security Investigations and the Florida Medicaid Fraud Control Unit also assisted with the investigation. Assistant United States Attorneys James D. Durham, Jeffrey J. Buerstatte, Frederick W. Kramer III, Joseph D. Newman and R. Brian Tanner prosecuted the case on behalf of the United States.
US Attorney's Office Exceeds $70,000,000 in Recoveries from Affirmative LitigationRead the Press Release
BUFFALO – U.S. Attorney William J. Hochul, Jr. announced today that the U.S. Attorney's Office collected $71,086,677 in the past twelve months, with all such monies coming solely from affirmative civil litigation. This amount – one of the highest ever obtained by the Office – does not include financial recoveries obtained by the Office using criminal, forfeiture or other enforcement tools, such as the more than $11 million obtained this week from John Gizzi, a defendant convicted of criminal tax fraud.
“While the public well knows of the Office’s ability to prosecute those who hurt others, cases brought by this Office’s ACE Unit are other ways in which we ensure the American public is protected against fraud and abuse,” said U.S. Attorney Hochul.
As part of its statutory responsibilities, the United States Attorney’s Office enforces federal criminal laws, including terrorism, environmental, narcotics, fraud, and more. In addition, the Office defends in court a wide number of federal agencies, such as the Veteran’s Administration and Post Office, when such agencies are sued by others. A sometimes lesser known power of the Office includes the ability to sue in court those who commit fraud against some of the U.S. Government’s programs, such as health care, procurement, and others. This is known as Affirmative Civil Litigation, and is handled by the Office’s Affirmative Civil Enforcement Unit, or ACE Unit.
As examples of cases which were successfully brought by the Office’s ACE Unit over the past twelve months, earlier this month, the Office announced a more than $34,000,000 settlement with 55 hospitals located throughout 21 states. These health care facilities submitted false claims to Medicare for a certain procedure known as kyphoplasty. Instead of billing the U.S. Government for what should have been the minimally-invasive, out-patient Kyphoplasty procedure, the hospitals submitted to and collected from the Government payments from what appeared to be multi-day in-patient stays in the facilities.
In March 2013, the U.S. Attorney's Office used its affirmative litigation power to obtain a settlement of $33,500,000 from ISTA Pharmaceuticals. This case involved ISTA misbranding the drug Xibrom so as to increase sales nationwide.
The ACE Unit’s accounting year ended July 31, which was the reason why the total figure of $71 million was released today. U.S. Attorney Hochul concluded by noting that while the $71 million recovery is itself significant, the Office also participated in a recent recovery of $335,000,000, which was part of the countrywide litigation conducted by the WDNY and other United States Attorney’s Offices.
The ACE Unit, which is supervised by Assistant U.S. Attorney Mary Pat Fleming, includes Assistant U.S. Attorney Gretchen Wylegala, Investigator Margaret McFarland, Auditor Theresa Tetlow, and Paralegal Jessica Rogers.
Two from Northeast Ohio Convicted in $8 Million Tax FraudRead the Press Release
Two self-proclaimed “citizens of the world” from Northeast Ohio were found guilty of conspiring to defraud the Internal Revenue Service out of more than $8 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
A jury found Don P. Gooch and Gerard F. Scott guilty of five counts, including one count of conspiracy and two counts each of making false claims, following a three-day trial. U.S. District Judge Donald Nugent is scheduled to sentence the men on October 24th. According to court records Don P. Gooch, 64, resides in East Cleveland, where Gerard F. Scott, 38, had a last known address.
In early 2011, Scott obtained a tax identification number for a purported trust (the Gerard Frank Scott Trust) and filed false Forms 1099-INT with the IRS stating that the trust had paid millions of dollars of interest income to Gooch, a woman identified at trial as Scott’s wife, and two other trusts purportedly set up by Scott and Gooch, from which a total of $17,000,000 of taxes had purportedly been withheld.
Based on those false 1099 forms, the conspirators caused false income tax returns to be filed for Gooch and Scott’s wife, and the two other trusts claiming false income tax refunds totaling approximately $8,033,930, according to court documents.
The conspirators initially succeeded in having refunds of approximately $261,000 deposited into a new bank account opened by Scott’s wife and $3.7 million deposited into a new bank account opened by Gooch as a trust account in the name Nhondi Eden Holdings. From those two accounts, over $2.5 million was transferred into a new bank account opened by Scott in the name Private Equity Investment Trust. Over the next few weeks after receiving the refunds, approximately $60,000 in currency was withdrawn from Scott’s wife’s account, while Scott, at times accompanied or assisted by his wife or Gooch, purchased and attempted to purchase a number of expensive or luxury items. The items included approximately $100,000 worth of gold and silver coins purchased jointly by Scott and his wife, a $93,000 Range Rover purchased in the nominee name of a purported ministry known as the Light of Peace Society, and a $164,000 Porsche and a $487,000 home in Aurora that Scott attempted to purchase in the nominee name, according to court documents.
This case is being prosecuted by Assistant United States Attorneys John M. Siegel and Justin J. Roberts following an investigation by the Internal Revenue Service – Criminal Investigation.
Three Somali Pirates Sentenced to Life-In-Prison for Murder of Four Americans Aboard SV QuestRead the Press Release
NORFOLK, Va. – Somali nationals Ahmed Muse Salad, a/k/a “Afmagalo,” 25, Abukar Osman Beyle, 20, and Shani Nurani Shiekh Abrar, 29, who were previously found guilty, by jury, of all 26 counts charged, to include: piracy, conspiracy to commit kidnapping, hostage taking resulting in death, kidnapping resulting in death, and multiple firearms offenses, were sentenced today by a federal jury. The three defendants were sentenced to life-in-prison for their roles in the February 22, 2011, murder of four Americans aboard the sailing vessel Quest. The victims included: Scott Underwood Adam, Jean Savage Adam, Phyllis Patricia Macay, and Robert Campbell Riggle.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, George Venizelos, Assistant Director in Charge (ADIC) of the FBI’s New York Field Office; Royce E. Curtin, Special Agent in Charge (SAC) of the FBI’s Norfolk Field Office, and Michael Monroe, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS), made the announcement after the sentence was accepted by Chief United States District Court Judge Rebecca Beach Smith.
“Four Americans were taken hostage, terrorized and then murdered. Life in prison is reserved for those who commit heinous crimes – and the jury today decided the execution of four innocent Americans on the high seas meets that high bar,” said United States Attorney Neil H. MacBride. “Scott Adam, Jean Adam, Phyllis Macay, and Robert Riggle lost their lives and their families lost their loved ones. Nothing can make this right; nothing can make their families whole again – but we hope today’s verdict and sentences will bring some closure to their nightmare that began two years ago on the Indian Ocean.”
“This case exemplifies the ongoing, outstanding cooperation between federal law enforcement and federal prosecutors,” said Norfolk SAC Royce Curtin. “Today’s sentencings should send a clear message to anyone committing acts of criminal violence against American citizens at sea that they will be prosecuted to the fullest extent of the law.”
Assistant Director-in-Charge Venizelos stated, “pirates armed with AK-47s and rocket-propelled grenades took four innocent Americans hostage aboard their own vessel. When negotiations reached an impasse, one pirate launched a grenade at a nearby U.S. Navy ship while others murdered four Americans aboard the Quest. Today’s life sentences provide a vigorous deterrent for armed bandits roaming our seas. The FBI's commitment to stopping this scourge of violence is unwavering.”
The defendants were previously indicted on July 8, 2011, by a federal grand jury on 26 counts, which included conspiracy to commit hostage taking, conspiracy to commit kidnapping, kidnapping resulting in death, conspiracy to commit violence against maritime navigation resulting in death, piracy, and firearms offenses. The defendants were convicted on all 26 counts on July 8, 2013. According to court records and evidence at trial, Salad, Beyle, Abrar and others—armed with firearms and a rocket-propelled grenade (RPG)—boarded the Quest while the four Americans slept on February 18, 2011. They gained control of the vessel and took the four American citizens as hostages. Their plan was to take the hostages to Somalia, where they and their additional co-conspirators in Somalia could commence ransom negotiations. While they sailed toward Somalia, the three defendants and their co-conspirators were taking turns standing armed guard over the hostages; at the same time, United States Navy ships headed towards the Quest to aid the hostages and prevent the Quest from proceeding to Somalia.
Beginning on February 19, 2011, communications had been established and the United States Navy and the FBI began negotiating with the pirates to secure the safe release of the hostages. On February 21, 2011, two co-conspirators representing the pirates onboard the Quest, were transferred to the USS Sterett to negotiate. The negotiations reached an impasse when the co-conspirators were told that they were not going to be allowed to take the hostages ashore in Somalia. The decision was made to detain the co-conspirators after they refused to release the hostages and threatened to kill them if they were not allowed to return to Somalia.
Testimony revealed that Abrar fired a shot over the head of Scott Adam and instructed Adam to tell the Navy that if the military came any closer, the conspirators would kill the hostages.
On February 22, 2011, without provocation and before the hostages could be rescued by members of the military, a co-conspirator fired an RPG in the general direction of the USS Sterett. Witnesses testified that sustained firing came from the Quest and that glass could be seen breaking on the starboard side of the Quest. Witnesses also testified that Salad, Beyle, and Abrar were the shooters and responsible for the deaths of Scott Adam, Jean Adam, Phyllis Macay, and Robert Riggle. After the gun fire died down, the Navy dispatched SEALS to the Quest. The pirates aboard the Quest began surrendering and some were seen throwing AK-47 rifles into the water.
This case was investigated by the FBI and the Naval Criminal Investigative Service. Assistant United States Attorneys Joseph DePadilla, Brian J. Samuels, and Benjamin L. Hatch prosecuted the case on behalf of the United States. A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae.
Three Ordered into Custody on Charges of Selling Drugs in School Zone and Other FeloniesRead the Press Release
LAREDO, Texas – A 16-count indictment has been returned against three Laredo men detailing firearms and multiple methamphetamine trafficking charges, some allegedly occurring within school zones, United States Attorney Kenneth Magidson announced today.
The indictment alleges that from on or about May 24, 2013, to June 28, 2013, Luis Macias-Molinas, 31, and Ricardo Rosas Jr., 26, did knowingly conspire with each other to possess with intent to distribute more than 500 grams of a mixture containing methamphetamine. Also named in the indictment but not charged in the conspiracy is Manuel Aguilar, aka Chino, 24.
The indictment was returned July 23, 2013, and unsealed upon Aguilar’s arrest last Friday. He made his initial appearance before U.S. Magistrate Judge Guillermo R. Garcia Monday, July 29, at which time he was ordered into custody pending a detention hearing to be held this morning. At the hearing today, additional information was provided including Aguilar’s prior criminal record, after which Judge Garcia ordered him to remain in custody pending further criminal proceedings.
Macias-Molinas and Rosas have been in custody on related charges. Rosas also appeared today, at which time he was also ordered to remain in custody. Macias-Molinas waived his appearance and will remain in custody.
Two counts of the indictment include allegations that on or about June 28, 2013, Macias-Molinas and Rojas possessed with intent to distribute 50 grams and another 500 grams and more of a mixture containing methamphetamine. The charges also include allegations that Macias-Molinas possessed with the intent to distribute 50 grams of methamphetamine on June 25, 2013.
These convictions carry varying terms of possible imprisonment, ranging from five years up to life in federal prison.
Moreover, on or about June 14, 2013, Macias-Molinas and Rojas did knowingly distribute 50 grams of methamphetamine within 1,000 feet of Mary Help of Christian School, a private school, according to the allegations. On two additional occasions, Macias-Molinas allegedly distributed methamphetamine in a school zone – once within 1000 feet of Clark Elementary School, a public elementary school, and another again near Mary Help of Christian School.
For the conspiracy charge, Macias-Molinas and Rosas face up to life in prison, if convicted. For possessing with the intent to distribute methamphetamine within a school zone, Macias will face a minimum of 10 years and up to life in prison for each of the three counts, while Rosas will serve a minimum of five and up to 80 years in federal prison, upon conviction.
On or about June 28, 2013, according to the indictment, Macias-Molinas also knowingly possessed in and affecting commerce, six Bushmaster .223 caliber rifles and a Smith and Wesson .357 caliber revolver. As a convicted felon, Macias-Molinas is prohibited by federal law of possessing a firearm. If convicted, he faces up to 10 years in prison for each of the seven firearms counts as charged in the indictment.
On that same date, Aguilar allegedly possessed a Taurus .380 caliber Automatic Colt Pistol. As a convicted felon, he is also prohibited from doing so and will also face up to 10 years in federal prison upon conviction. The indictment further charges Aguilar with one count of possessing with intent to distribute five grams or less of cocaine for which he faces up to 20 years and a possible $1 million fine, upon conviction.
The case is being investigated by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Laredo Police Department. Assistant United States Attorneys Sanjeev Bhasker and Homero Ramirez are prosecuting the case.
A defendant is presumed innocent unless convicted through due process of law.St. Louis Man Pleads Guilty to Cocaine OffenseRead the Press Release
Michael J.W. Bryant, 41, of St. Louis, Missouri, pled guilty on August 1, 2013, to Unlawful Possession with the Intent to Distribute Cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Bryant had been indicted by a federal grand jury sitting in East St. Louis on June 18. He is currently scheduled to be sentenced on November 8, 2013, at which time he faces a possible penalty of twenty (20) years in prison, a $1,000,000 fine, at least three (3) years of supervised release, and a $100 special assessment.
According to the Stipulation of Facts filed with the Court at the time of the plea, on May 30, 2012, the Illinois State Police conducted a traffic stop of a vehicle being driven by Bryant. As the Trooper approached the stopped car, he smelled the odor of marijuana coming from it. Bryant admitted that he had smoked marijuana approximately thirty minutes prior to the traffic stop. The Trooper then searched the vehicle on probable cause and found a small quantity of marijuana. Bryant was arrested and his vehicle was towed. A subsequent search of the vehicle resulted in the seizure of 499.8 grams of cocaine.
Evidence for this indictment was gathered during an investigation conducted by the Drug Enforcement Administration (DEA) and the Illinois State Police. This case has been assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Spokane Valley Man Sentenced to Twelve Years in Federal Prison for Possessing Child PornographyRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Christopher Michael Ebner, age 38, of Spokane Valley, Washington, was sentenced today after having previously pleaded guilty on March 19, 2013 to possessing child pornography. Chief United States District Court Judge Rosanna Malouf Peterson sentenced Ebner to a twelve year term of imprisonment, to be followed by a life term of court supervision after he is released from Federal prison. In addition, Ebner was ordered to forfeit the computer he used to possess the child pornography images.
According to information disclosed during the court proceedings, in January of 2012, a Spokane Police Internet undercover investigation discovered that Ebner was sharing images of child pornography with other individuals, via the Internet, using a peer to peer file sharing program. On January 26, 2012, law enforcement officers executed a search warrant at Ebner's residence in Spokane Valley. The officers discovered Ebner had downloaded well in excess of 400 images and 1,000 videos of child pornography onto his computer, which included images of minors under the age of twelve and sadistic and masochist images. Ebner's criminal history includes prior Washington State convictions in 2004 for Third Degree Rape of a Child and Possession of Depictions of a Minor Engaged in Sexually Explicit Conduct.
Michael C. Ormsby stated, "The United States Attorney's Office in the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes. Prosecuting these types of crimes is particularly important because of the tender age of the innocent victims."
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood (PSC) Initiative has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue child victims;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted the FBI and the Spokane Police Department. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
CR-12-0126-RMP
Shellsburg Tax Return Preparer and Sports Official Sentenced to Prison for Preparing and Filing Fraudulent Tax ReturnsRead the Press Release
A self-employed tax preparer and sports official for local athletic events who prepared and filed fraudulent federal tax returns was sentenced today to over a year in federal prison.
Keith Rath, 52, from Shellsburg, Iowa, received the prison term after a May 1, 2013, guilty plea to one count of aiding and assisting the preparation and filing of a false and fraudulent tax return.
In a plea agreement, Rath, who owned and operated a tax return preparation business, as well as a sports officiating business, in Shellsburg, admitted he prepared and filed a false tax return on behalf of a client, fraudulently increasing the amount of the client’s tax return. Rath also admitted he arranged to have the fraudulent portion of the client’s tax return deposited directly into Rath’s bank account. Rath admitted he did this without the client’s knowledge. Finally, Rath admitted he filed multiple other similarly false tax returns between 2008 and 2010.
“Knowingly falsifying documents that are filed with the IRS is a crime,” said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. “Tax return preparers have a duty to prepare returns that comply with the law and are accurate.”
Rath was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Rath was sentenced to twenty-one months’ imprisonment to be followed by one year of supervised release. A special assessment of $100 was imposed and he was ordered to make $52,418 in restitution. There is no parole in the federal system.
Rath was released on conditions previously set by the United States District Court and is to surrender to the United States Marshal on August 22, 2013.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Internal Revenue Service Criminal Investigation Division.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-12.
Serial Bank Robber Pleads GuiltyRead the Press Release
Tampa, Florida - Acting United States Attorney A. Lee Bentley, III announces that Marcus Dontell Lloyd (35, Port Charlotte) pleaded guilty today to one count of conspiracy to commit bank robbery, and one count of bank robbery. Lloyd faces a maximum penalty of five years in federal prison for the conspiracy count, and up to 20 years in federal prison for the bank robbery offense.
According to the plea agreement, Lloyd, aided and abetted by a separately charged woman named Kaylee Sanchez, committed a series of bank robberies in the Middle District of Florida between July 26, 2012, and August 21 of 2012. While robbing the banks, Lloyd used helmets, hats, sunglasses, and on at least one occasion, a wig, to disguise his appearance. Lloyd did not display or indicate that he had a weapon while committing the robberies, but would jump or climb over the teller counter and literally grab cash from the teller drawers. Sanchez acted as his getaway driver.
Lloyd's bank robberies included a TD Bank in Apollo Beach on July 27; a Bank of America (BOA) in Lakeland on July 27; a BB&T Bank in New Port Richey on July 31; a BOA in Ormond Beach on August 2; and a BOA in Belleview on August 13, 2012. On August 21, 2012, Lloyd and Sanchez were arrested following a car and foot chase, after Lloyd had robbed a Bank of America bank in Boynton Beach. Lloyd dropped a bag with most of the bank money while running away from police officers. In total, Lloyd’s robberies totaled more than $91,000.
The case was investigated by the Federal Bureau of Investigation, the Hillsborough County Sheriff’s Office, and the Pasco County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Mark E. Bini.
Sentences for July 26 - 29, 2013Read the Press Release
Kenneth Henningson, 63, of Lyman, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 29, 2013, for possession of child pornography. Henningson was arrested in Lyman, Wyoming. He received 24 months imprisonment, to be followed by ten years of supervised release and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation, the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Benjamin Lloyd Croley, 34, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 29, 2013, on one count of conspiracy to possess with intent to distribute, and to distributing between 500 grams and 1.5 kilograms of a mixture or substance containing a detectable amount of methamphetamine and one count of possession with intent to distribute methamphetamine and aiding and abetting. Croley was arrested in Casper, Wyoming. He received 121 months imprisonment, to be followed by five years of supervised release and was ordered to pay a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Sigifredo Molina Varela, 41, and Jacqueline Garcia, both of Gillette, Wyoming, were sentenced by Federal District Court Judge Alan B. Johnson on July 26, 2013, on one count of conspiracy to possess with intent to distribute 6.9 kilograms of methamphetamine and one count of possession of a firearm in furtherance of a drug felony. Both defendants were arrested in Gillette, Wyoming. Varela and Garcia each received 180 months of imprisonment, to be followed by five years of supervised release and were ordered to pay an $800.00 fine and a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Second Bloomington Resident Sentenced to Federal Prison for Mortgage Fraud ScamRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 40-year-old Bloomington man was sentenced for his role in defrauding financial institutions and homeowners under the guise of a program to rescue homes from foreclosure. On July 31, 2013, United States District Court Judge John R. Tunheim sentenced Richard Scott Spady to 24 months in federal prison and two years of supervised release on one count of conspiracy to commit wire and mail fraud and one count of filing a false income tax return. On April 4, 2012, Spady was charged in a superseding indictment, and he pleaded guilty on September 5, 2012.
On April 22, 2013, Spady’s co-defendant, Michele Denise Sengstock, age 50, also of Bloomington, was sentenced to 14 months in federal prison on one count of wire fraud. Spady and Sengstock were ordered to pay $1,127,129.31 in restitution.
In his plea agreement, Spady admitted operating his scheme between 2005 and 2007. According to the charges in the case, Spady operated a company called Unified Home Solutions, or UHS, which identified homeowners who were facing mortgage foreclosure or already in foreclosure proceedings. UHS then found third party investors to purchase the homes, planning to sell them back to the original homeowners within one to two years. In the meantime, according to the Indictment in the case, the distressed homeowners could live in their homes.
Though in foreclosure, because they could not make mortgage payments, the homeowners still had some equity in their homes. When the properties were sold, checks were issued to the original homeowners for their equity. The homeowners then signed over the equity checks and the proceeds were used to pay expenses and divided among the investors, UHS, and others. In some cases, equity from one sale was used to purchase other distressed properties.
In his guilty plea, Spady admitted that false and mortgage loan applications and loan closing documents were prepared and that lenders were not told about the distribution of equity from the sales, including rolling one homeowner’s equity into the purchase of a subsequent home for an investor. According to the charges in the case, fewer than 10 percent of the homeowners who used UHS were able to retain their homes, and all the homeowners lost their equity in the process.
Spady also admitted that for the tax years 2006 and 2007, he filed federal income tax returns that failed to report over $100,000 in income, resulting in an underpayment of taxes of more than $30,000.
In her plea agreement, Sengstock admitted assisting in the fraudulent operations of UHS by preparing false mortgage loan applications and closing documents.
This case was the result of an investigation by the U.S. Postal Inspection Service and the Internal Revenue Service-Criminal Investigations. It was prosecuted by Assistant U.S. Attorney Robert M. Lewis.
The U.S. Attorney’s Office wants to remind people to protect themselves from mortgage fraud. For more information, visit http://www.stopfraud.gov/protect-mortgage.html.
This law enforcement action is in part sponsored by the interagency Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. It includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and, with state and local partners, investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.Rudy Gumataotao Palomo Sentenced for Felon in Possession of A Firearm and AmmunitionRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced today that defendant RUDY GUMATAOTAO PALOMO was sentenced by Chief Judge Frances Tydingco-Gatewood in the United States District Court, to forty six (46) months imprisonment for the offense of Felon in Possession of a Firearm, and forty six (46) months imprisonment for the offense of Felon in Possession of Ammunition, both terms to run concurrently. After defendant serves his term of imprisonment, he will be placed on supervised release for three (3) years for each count, to run concurrently, and is required to pay a $200 special assessment fee, and attend a substance abuse program. His jail term is to be served at the Bureau of Prisons facility in
Sheridan, Oregon.On July 29, 2012, defendant RUDY GUMATATAO PALOMO was in possession of a 30.30 Marvin Lever Action Rifle which contained a chambered round of ammunition. PALOMO then pointed the firearm at a relative. The relative immediately called police. Guam Police Officers pulled over PALOMO in the village of Yigo and discovered the firearm and ammunition underneath his seat. Because PALOMO has prior felony convictions in the Superior Court of Guam, he is prohibited from carrying a firearm or ammunition.
U.S. Attorney Limtiaco states “Felons are absolutely prohibited from possessing firearms or ammunition. It is important to protect innocent civilians and law enforcement officers from armed convicts, and felons who possess guns or ammunition must be aware that they will face aggressive prosecution and will receive long prison sentences.”
U.S. Attorney Limtiaco noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood (PSN) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in drug distribution, gang involvement and violent crime.
U.S. Attorney Limtiaco commends the investigative efforts of the Guam Police Department and Task Force Officer Katrina Alconaba with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Raleigh County Pill Addict Who Illegally Possessed A .45 Caliber Pistol Sentenced to Federal PrisonRead the Press Release
BECKLEY, W.Va. – A Raleigh County man who admitted to having an addiction to the powerful prescription painkiller oxycodone was sentenced today to one year and nine months in federal prison for illegal possession of a firearm, announced United States Attorney Booth Goodwin. James David Morris, 34, of Eccles, W.Va., previously pleaded guilty in April to being an unlawful drug user in possession of a firearm. On March 28, 2012, Morris possessed a .45 caliber pistol near Harper, Raleigh County. Morris told police that at the time he possessed the firearm, he was an unlawful user of and addicted to oxycodone. Police also recovered eight additional firearms that were located at Morris’ residence.
The West Virginia State Police and the FBI conducted the investigation. Assistant United States Attorney John File handled the prosecution. The sentence was imposed by United States District Judge Irene C. Berger.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
This case was also prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Pleasant Grove Man Sentenced to Prison After Pleading Guilty to Unlicensed Wholesale Distribution of Prescription DrugsRead the Press Release
SALT LAKE CITY – Michael Lawrence O’Donnell, age 63, of Pleasant Grove, Utah, who admitted he distributed prescription pharmaceutical drugs he obtained in Europe to healthcare professionals around the United States without a license, will serve a year and a day in federal prison. U.S. District Judge David Nuffer imposed the sentence Wednesday afternoon in Salt Lake City.
In a plea agreement reached with federal prosecutors, O’Donnell admitted that between October 2005 and March 2007 he engaged in the wholesale distribution of prescription drugs, including Botox, Zometa, Gemzar, and Aranesp. At the time he was distributing the drugs around the United States, O’Donnell admitted that he did not possess a license from the State of Utah to engage in the wholesale distribution of the drugs.
According to the indictment in the case, prescription drug manufacturers generally distribute products to doctors, pharmacists, and hospitals through licensed wholesale distributors. A prescription drug may have been purchased and distributed by several licensed wholesale distributors before it is delivered to a doctor, pharmacy, or hospital. Some wholesale distributors obtained prescription drugs from questionable, and often unlicensed, sources that sell the drug for prices significantly below the average wholesale price of the drug. Those sources may also have purchased stolen, counterfeit, sub-potent, unapproved, expired, or otherwise unlawful drugs.
To prevent the distribution of stolen, counterfeit, sub-potent, unapproved, expired or otherwise unlawful drugs, Congress enacted the Prescription Drug Marketing Act (PDMA). The Act prohibits individuals from engaging in the wholesale distribution of prescription drugs in a particular state unless the individual is licensed by the state to do so.
“The defendant’s efforts to obtain foreign, unapproved prescription drugs from the United Kingdom and distribute them from Utah to health care practitioners throughout the United States defrauds the health care practitioners who purchased and administered the drugs, the end-user patients who were given the drugs, and the government and private insurance companies who reimbursed the health care professionals for the drugs, which were not what they were purported to be – that is, drugs distributed under federal law that met or exceeded U.S. pharmacy standards,” U.S. Attorney David B. Barlow said today.
“Unlicensed wholesalers, who import prescription drugs into the United States and further distribute them, introduce potentially substandard treatments into the stream of commerce, which, in turn, create potential health risks to the ultimate consumers of those drugs,” said Patrick Holland, Special Agent in Charge of FDA’s Office of Criminal Investigations Kansas City Office. “Protection of the pharmaceutical supply chain remains among our highest priorities, and we at FDA’s Office of Criminal Investigations will continue to partner with the Department of Justice and our law enforcement counterparts to vigorously investigate supply-chain issues.”
The indictment alleged that O’Donnell owned and operated several businesses that represented themselves as medicine wholesalers. As a part of his business, O’Donnell secured wholesale quantities of prescription pharmaceutical drugs from his related company, GHRX, located in the United Kingdom. GHRX obtained these pharmaceuticals from unknown sources throughout the world. O’Donnell received orders for prescription pharmaceutical drugs that had been placed through Clinical Care Pharmacy and Concord Drug Store, internet web sites that held themselves out to be and functioned as internet-based pharmacies.
The internet pharmacy web sites represented that their prices were competitive or lower than prices for comparable drugs available through other pharmacies and that their products were approved by United States and Canadian regulators and that their purported brand-name and generic prescription pharmaceutical drugs were equivalent to, or exceeded, North American standards.
Contrary to those representations, the indictment alleged, the prescription drugs offered through these internet pharmacy web sites were not, in fact, approved by the FDA for introduction and use in the United States. The pharmaceutical drugs were shipped by employees of O’Donnell to health care providers throughout the United States using nondescript boxes and false return addresses to conceal the actual originating shipping location.
He pleaded guilty to a count in the indictment that charged him with shipping Botox from Utah to a health care provider in New York in July 2006.
Palm Harbor Man Sentenced to 6 Years in Prison for Illegal Firearms SalesRead the Press Release
Tampa, FL - U.S. District Judge Richard A. Lazzara today sentenced Steven Scott Schriebman (24, Palm Harbor) to 6 years in federal prison for the unlawful possession and transfer of machineguns and destructive devices. Schriebman pleaded guilty on January 4, 2013.
According to court documents, from May through November 2012, Schriebman unlawfully sold a number of high-powered assault rifles, including AK-47s, AR-15s, and an Uzi, to an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Schriebman was selling the firearms from his residence in Palm Harbor. In addition to the machineguns, Schriebman sold the undercover agent several explosive devices that Schriebman believed the agent needed to blow up a vehicle. Schriebman also offered to obtain silencers, military weapons, and bullet proof vests for the undercover agent.
During the execution of a federal search warrant at Schriebman's residence, agents recovered a number of additional assault rifles, machineguns, shotguns, handguns, pen guns, magazines, ammunition, assorted firearm parts, flares, firearm conversion kits, and other firearm paraphernalia.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Owner of Hoffman Jewelers Pleads Guilty to Filing False Tax ReturnRead the Press Release
GRAND RAPIDS, MICHIGAN – Michael Hoffman, 59, of Ada, Michigan, pleaded guilty to willfully filing a false corporate tax return, U.S. Attorney Patrick A. Miles, Jr., announced today. Hoffman faces a sentence of three years imprisonment; a one year period of supervised release; a fine of $250,000; costs of prosecution; and a mandatory special assessment of $100. U.S. Attorney Miles was joined in the announcement by Special Agent in Charge Erick Martinez, IRS Criminal Investigation.
Hoffman, the owner of Hoffman Jewelers of East Grand Rapids, Michigan, acknowledged to U.S. Magistrate Judge Ellen S. Carmody that he willfully filed a false income tax return for his business in 2007 and further that the total tax loss for 2007 – 2009 for both the business and his personal returns was $261,320. The Government noted that Hoffman has paid that amount but faces additional civil penalties.
“This is a prime example of the serious consequences for cheating on your taxes,” said Special Agent in Charge Erick Martinez. “By pleading guilty, Hoffman is acknowledging he intentionally did not report all of the earnings from his jewelry business.”
Sentencing has been set for November 14, 2013, at 2:30 p.m. before U.S. District Judge Janet T. Neff.
Special Agents of the IRS investigated the case; Assistant U.S. Attorney Donald A. Davis prosecuted it.
END
Oakland Man Indicted for Robbing Five Banks and Attempting to Rob Two Banks in the East BayRead the Press Release
OAKLAND, Calif. - A federal grand jury in Oakland indicted Amanuel Moreno today with five counts of bank robbery and two counts of attempted bank robbery, announced United States Attorney Melinda Haag.
The superseding indictment alleges that Moreno, 20, of Oakland, robbed or attempted to rob the following banks:
Date Bank Location Amount Stolen 6/29/2012 Bank of the West 24299 Southland Drive, Hayward $25 12/6/2012 Bank of the West 4900 Telegraph Avenue, Oakland $506 12/6/2012 Chase Bank 2270 Otis Drive, Alameda Attempt 12/13/2012 Wells Fargo Bank 950 South Holland Drive, Hayward $1,541 12/18/2012 Chase Bank 32101 Union Landing, Union City Attempt 12/18/2013 U.S. Bank 1585 East 14th Street, San Leandro $724 1/16/2013 Bank of the West 4900 Telegraph Avenue, Oakland $3,321Moreno was arrested on January 25, 2013, by local law enforcement and remained in local custody pursuant to a probation violation. He was originally charged by criminal complaint on a single count of bank robbery on February 22, 2013, and he was indicted on that same count on July 11, 2013. Moreno made his initial appearance in federal court in Oakland on July 5, 2013, and he is currently in federal custody. His next scheduled appearance is at 2:00 p.m. on September 5, 2013, for a status hearing before U.S. District Judge Yvonne Gonzalez Rogers.
The maximum statutory penalty for each count of bank robbery and attempted bank robbery, in violation of 18 U.S.C. § 2113(a), is 20 years in prison. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the Federal Bureau of Investigation, the Oakland Police Department, the Hayward Police Department, the Alameda Police Department, the Union City Police Department, and the San Leandro Police Department.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Moreno must be presumed innocent unless and until proven guilty.
(Moreno Complaint )
(Moreno Superseding Indictment )
(Moreno Indictment )
Non-Native Resident of Pojoaque Pueblo Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Hak Ghun, 62, of Durango, Colo., was sentenced this afternoon to imprisonment for a term of a year and a day followed by two years of supervised release for his tax evasion conviction. Ghun also will be required to pay $249,567 in restitution to the IRS.
Ghun was charged in April 2012, in a three-count indictment with evading an aggregate of $367,809 in federal taxes during tax years 2005, 2006 and 2007. At that time, Ghun was the chief executive officer of BCDS Manufacturing, Inc. (BCDS), a manufacturing company located in Shiprock, N.M. In 2003 and 2004, the Navajo Nation invested economic development funds in BCDS and became the majority owner of the company, and in 2006, obtained a $2.2 million loan for the purpose of expanding the BCDS facility in Shiprock. The indictment alleged that between 2005 and 2007, Ghun used BCDS funds to pay his personal expenses and evaded his personal tax obligations on those funds by concealing his conduct from BCDS’s corporate accountant and by filing false corporate tax returns on behalf of BCDS.
On Feb. 21, 2013, Ghun entered a guilty plea to Count 2 of the indictment charging him with evading federal income taxes in 2006. In entering his guilty plea, Ghun admitted that, during 2005, 2006 and 2007, he was the chief operating officer of BCDS, a company that sought military procurement contracts as a source of economic development for the Navajo Nation, and had access to the company’s bank accounts. Ghun admitted withdrawing funds from BCDS’s bank accounts and spending a significant portion of the funds for himself. Ghun used the funds to make support payments to his ex-wife and paying for luxury cars, hotels stays and gambling. Ghun acknowledged that the funds he misused were taxable as personal income and that he failed to pay taxes on that income.
Ghun admitted receiving gross income of $207,726 in calendar year 2005 and willfully evading approximately $29,197 in federal income taxes. He also admitted receiving gross income exceeding $620,361 in calendar year 2006 and willfully evading approximately $145,156 in federal income taxes, and receiving gross income exceeding $251,435 in taxable income in 2007 and evading approximately $65,214 in taxes.
The case was investigated by the IRS, Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Jonathon M. Gerson.
Non-Native Resident of Pojoaque Pueblo Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Johncarlos Ortiz, 39, a non-native resident of Pojoaque Pueblo, N.M., pleaded guilty this morning to a felony information charging him with receipt of a visual depiction of a minor engaged in sexually explicit conduct charges under a plea agreement with the U.S. Attorney’s Office.
Ortiz was arrested in Sept. 2012, on a criminal complaint alleging that he possessed and distributed child pornography at his residence in Pojoaque Pueblo. The investigation of this case was initiated in July 2012, after the National Center for Missing and Exploited Children (NCMEC) received information that images consistent with child pornography had been posted on a social networking site and sent the tip to the New Mexico Attorney General’s Office (NMAGO). In early Aug. 2012, after determining that the images were posted using an email account subscribed to Ortiz, the NMAGO and the New Mexico Internet Crimes Against Children (ICAC) Task Force contacted the FBI. On Sept. 11, 2012, the FBI executed a federal search warrant at Ortiz’s residence and seized a computer and a computer flash drive that contained images consistent with child pornography.
During this morning’s proceedings, Ortiz admitted receiving a visual depiction of a minor involved in sexual explicit conduct on Sept. 11, 2012. Ortiz also admitted downloading images consistent with child pornography from various websites. Court records reflect that Ortiz’s unlawful conduct occurred in a residence on the Pojoaque Pueblo.
Ortiz was remanded into the custody of the U.S. Marshals Service after entering his guilty plea and he will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Ortiz faces a prison sentence of not less than five years and not more than 20 years followed by a term of supervised release to be set by the court. Ortiz also will be required to register as a sex offender after he completes his prison sentence.
The case was investigated by the Santa Fe office of the FBI, the NMAGO and the New Mexico ICAC Task Force. Assistant U.S. Attorney Jacob Wishard is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s 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 exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Melbourne Man Sentenced to 15 Months in Prison for Threatening to Kill the PresidentRead the Press Release
Orlando, Florida - U.S. District Judge John Antoon, II sentenced Christopher Castillo (28, Melbourne) today to 15 months in federal prison for threatening to kill the President of the United States. Castillo was convicted by a federal jury on February 5, 2013.
According to testimony and evidence presented at trial, Castillo posted the following threat on Facebook, "that's the last straw, if he gets re-elected I'm going to hunt him down and kill him watch the life disappear from his eyes." Later, after someone informed him that threatening the President was a federal offense, Castillo "doubled-down" as the witness described, by posting, "I wouldn't call it a threat but more of a promise, let them come after me...Be more than happy to take a few of them with me."
A witness reported the threat to the United States Secret Service and law enforcement officers subsequently interviewed Castillo at his home. During the interview, Castillo admitted making the statements. He also stated that he meant it because of his "severe anger" toward the President because of the President's views on healthcare. When asked what he would do if the President were standing in front of him, Castillo made an explicit statement about slapping and beating the President. Castillo also told agents that he would call the President a terrorist. During the trial, Castillo testified that he was just angry and did not really mean that he would kill the President.
This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Shawn P. Napier.
Mara Salvatrucha Leader "Pantro," Along with Other MS-13 Members, Sentenced for Racketeering Offenses Including MurderRead the Press Release
RICHMOND, Va. – Jose Armando Bran, aka “Pantro,” 30, of Richmond, Va., was sentenced today to 2 consecutive life sentences for his role in a gang related murder and maiming that he ordered while he was leader of a local clique of the transnational MS-13 gang. On May 20, 2013, Bran was found guilty of two counts of conspiracy to commit murder, murder, maiming, and use of a firearm during a crime of violence resulting in death.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division; Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office; John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington; Michael Herring, Richmond Commonwealth’s Attorney; Ray J. Tarasovic, Chief of Police for Richmond Police Department; Billy Davenport, Chesterfield Commonwealth’s Attorney; and Col. Thierry G. Dupuis, Chief of Police for Chesterfield County Police Department, made the announcement after the sentencing by Senior United States District Judge Robert E. Payne.“Mara Salvatrucha has been a parasite upon the communities of the Eastern District of Virginia,” said U.S. Attorney Neil H. MacBride. “The prosecution and incapacitation of MS-13 and its criminal membership is of the utmost importance to my office and our law enforcement colleagues. We remain steadfast in both our pursuit and commitment to eradicate La Mara and will continue to use all available tools in our federal arsenal to achieve that goal. Today’s life sentence and permanent incapacitation of a vicious and morally bankrupt MS-13 leader marks yet another powerful step toward dismantling MS-13 in the Eastern District of Virginia.”
“The sentencing of Jose Bran should be an example of the commitment the FBI has against violent gangs in the Commonwealth,” said FBI SAC Jeffrey C. Mazanec. “The FBI will continue to work closely with its law enforcement partners to combat violent gangs.”
According to evidence presented at trial, Bran was responsible for orchestrating a gangland-style execution of Osbin Hernandez-Gonzalez. Bran, who served as the leader of MS-13’s Sailors Locos Salvatrucha clique in Richmond, suspected that Hernandez-Gonzalez had violated MS-13 rules by aiding a rival gang. Based upon this suspicion, Bran created a ruse to lure Hernandez-Gonzalez to the “Pony Pasture” area on the banks of the James River. Bran ordered MS-13 associate Karen San Jose to contact Hernandez-Gonzalez and convince him to gather with other MS-13 members. Bran also enlisted the help of two juveniles, Luis Cabello and Jeremy Soto, who were tasked with actually carrying out the murder of Hernandez-Gonzalez. Finally, to ensure the murder was carried out, Bran instructed MS-13 member Michael Arevalo, aka “Reptile,” to accompany the juveniles on the “mission,” and to ensure the juveniles completed the murder, which Arevalo did.
Evidence at trial also established a separate conspiracy to commit murder that involved Bran. The evidence revealed that in approximately January 2012, Bran was told that an individual with the initials F.A. was supplying information about the Richmond Sailors clique to a rival gang. A plan was developed to have MS-13 associate Justin Amador kill F.A. to both punish the supposed informant and test Amador’s loyalty.
On January 14, 2012, Bran directed that the plan be carried out. Sometime that evening, Giovanny Torres, along with Justin Amador, Mario Molina, and Marvin De Leon, drove the victim to a nightclub in Richmond. They left after forty-five minutes, telling the victim that they were all going to commit a burglary, then drove to the vicinity of the 3800 block of Terminal Avenue in Richmond. After they arrived, the victim, De Leon and Justin Amador got out of the car. At a signal from Torres, De Leon grabbed the victim, and pulled his sweatshirt over his head, holding him while Justin Amador stabbed the victim at least 14 times. The victim escaped and fled to a nearby residence while the others drove away. As a result of the attack, the victim lost a portion of one lung.
The other members and associates of the MS-13’s Sailors Locos Salvatrucha clique in Richmond, Virginia that have been convicted include the following individuals:
• On January 23, 2013, Michael Arevalo, a.k.a. “Reptile,” pleaded guilty in United States District Court to conspiracy to commit murder in aid of racketeering and use of a firearm in furtherance of a crime of violence resulting in murder. On July 25, 2013, he was sentenced to serve life in prison plus 10 years.
• On March 15, 2013, Karen San Jose pleaded guilty in United States District Court to aiding and abetting the use of a firearm in furtherance of a crime of violence resulting in murder. On July 23, 2013, she was sentenced to serve 20 years in prison.
• Luis Cabello, a.k.a. “Destroyer,” was charged as an adult by the Richmond Commonwealth Attorney’s Office and on January 25, 2012, he was found guilty by a jury of first degree murder, use of a firearm in commission of a felony and gang participation. On June 24, 2013, Cabello was sentenced to serve 34 years in prison.• Jeremy Soto, a.k.a. “Sneaky,” was charged as an adult by the Richmond Commonwealth Attorney’s Office and on July 31, 2013, pleaded guilty to second degree murder, use of a firearm in commission of a felony and gang participation. On July 19, 2013, Soto was sentenced to serve 18 years in prison.
• On August 15, 2012, Mario Molina, a.k.a. “Correcto,” pleaded guilty in United States District Court to maiming in aid of racketeering. On December 12, 2013, he was sentenced to serve 293 months in prison.
• On June 29, 2012, Giovanny Torres, a.k.a. “Gio,” pleaded guilty in United States District Court to maiming in aid of racketeering. On March 14, 2013, he was sentenced to serve 235 months in prison.
• On May 10, 2012, Marvin De Leon, a.k.a. “Bomba,” pleaded guilty in United States District Court to maiming in aid of racketeering. On July 23, 2013, he was sentenced to serve 235 months in prison.
• On June 18, 2012, Justin Amador, a.k.a. “Danger,” pleaded guilty in United States District Court to maiming in aid of racketeering. On July 25, 2013, he was sentenced to serve 235 months in prison.
• After Bran and others were arrested, Jose Mancia-Martinez, a.k.a “Ready” became the new leader of the MS-13’s Sailors Locos Salvatrucha clique in Richmond. On August 18, 2012, Mancia-Martinez and a friend offered a young girl and ride and subsequently raped her while threatening her with a machete. He was charged as an adult in Chesterfield County Circuit Court. On January 9, 2013, he was found guilty by a jury of forcible rape, and on July 17, 2013, he was sentenced to serve 20 years in prison.
This case was investigated by the FBI, HSI, the Richmond Police Department and the Chesterfield County Police Department. Assistant United States Attorney Roderick C. Young and Trial Attorney Andrew L. Creighton of Criminal Division’s Organized Crime and Gang Section prosecuted the case on behalf of the United States. Assistant Commonwealth’s Attorney Mike Holloman prosecuted the case on behalf of the Richmond Commonwealth’s Attorney’s Office, and Assistant Commonwealth’s Attorney B.J. McGee prosecuted the case on behalf of Chesterfield Commonwealth’s Attorney’s Office.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Man Sentenced in Heroin CaseRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Ben Scott was sentenced in United States District Court in East St. Louis to 120 months in prison, supervised release after prison for 8 years, an $800 fine, and $100 special assessment.
U.S. Attorney Stephen Wigginton commented that, “These severe federal prison sentences should put drug dealers on notice that they peddle heroin at their own risk, and those risks are considerable. This prosecution and sentencing is only one aspect of our ongoing anti-heroin initiative.”
According to public documents filed with the Court, Scott was arrested by Drug Enforcement Administration (DEA) agents on June 12, 2012, on information that he was returning from Chicago, IL with large amounts of Heroin. DEA agents stopped Scott’s vehicle in Madison County and found 200 grams of heroin in Scott’s 82-year old grandmother’s purse, who was traveling in the same vehicle as Scott.
The case was investigated by the Drug Enforcement Administration in the Southern District of Illinois and was prosecuted by Special Assistant United States Attorney Jungmin Lee.