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19 September 2013
Former Moro Township Official Pleads Guilty to FraudRead the Press Release
Donald R. Flack, 77, of Moro, Illinois, who served as the Moro Township Supervisor, pled guilty to wire fraud and structuring transactions to avoid reporting requirements today in federal court, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. Flack faces up to 20 years in prison on the wire fraud charge and up to 5 years in prison on the structuring charge. Both charges hold the possibility of a $250,000 fine and 3 years of supervised release after prison term. Sentencing is set for January 3, 2014.
Evidence revealed in Court showed that Flack was an elected official and employed as Moro Township Supervisor since 2001. Moro Township is a governmental unit in Madison County, Illinois. As Moro Township Supervisor, Flack was required to accurately report the finances of the township to the township board, to the township citizenry, and also to the Illinois Comptroller’s Office.
In approximately 2006, Flack began unlawfully taking money in excess of his authorized salary from the Moro Township account believing that he could repay the money. Flack claims he borrowed the money to make a personal investment with a large return promised. Flack was planning to repay the township. Flack wrote checks to himself out of the township account disguised as “office expenses.” The amount of funds misappropriated is approximately $700,000.
The prosecution is the result of an investigation conducted by the Federal Bureau of Investigation and the Internal Revenue Service/Criminal Investigations. The prosecution is being handled by Assistant U.S. Attorney Norman R. Smith.
Former Edwardsville Police Chief Sentenced for Theft and EmbezzlementRead the Press Release
James S. Bedell, 57, the former Chief of Police of Edwardsville, Illinois, was sentenced today in federal court to eighteen months in prison, to be followed by three years of supervised release, an order of restitution in the amount of $136,800, and a special assessment fee of $400.00, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. On April 17, 2103, Bedell pled guilty to four counts of Embezzlement and Theft from the City of Edwardsville.
“I am always saddened when a member of law enforcement is found to be engaged in illegal acts. I urge the public to remember that the vast majority of our men and women in blue are extremely honest, bright and capable, and that they put on their uniforms each day to serve the citizens, not knowing if they will come home at the end of their shift. It is for them and for all of us that I will not cease my efforts to expose and help punish police misconduct when it is found.” said United States Attorney Wigginton.
James S. Bedell was employed as the Director of Police and was also referred to as the Chief of Police of the City of Edwardsville from approximately 2007 through October 5, 2012. As part of the plea, Bedell admitted that from July of 2009 through September of 2012, while Chief for the City of Edwardsville, he unlawfully removed cash and money orders from a lockbox in the police department that contained vehicle impound fees. The City of Edwardsville charges a $300 fee for vehicles towed as a result of certain enumerated violations. The $300 administrative fee must be paid by cash or money order and the paid administrative fee is revenue to the City which must be properly accounted for and therefore the funds received are not for the personal use of an employee of the City of Edwardsville. Bedell admitted as part of the plea that he converted some of the funds to his personal use, generally to support a gambling habit.
The investigation was conducted by the Federal Bureau of Investigation and the Illinois State Police, with the assistance of the City of Edwardsville. The prosecution was handled by Assistant U.S. Attorney Norman R. Smith.
Former Bank Branch Manager Pleads Guilty to Embezzlement, Money Laundering and Income Tax Fraud ChargesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO – Diane Elizabeth Niehaus, 40, of Beavercreek, Ohio pleaded guilty to one count each of embezzlement, money laundering, and filing a false income tax return with the Internal Revenue Service (IRS) for her scheme to embezzle thousands of dollars from the accounts of customers of the branch bank she managed in Centerville, Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cincinnati Field Office and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office announced the guilty pleas entered before U.S. District Judge Timothy S. Black.
According to court documents, Niehaus managed the Union Savings Bank branch in Centerville between 2007 and 2010. Using her position with USB, Niehaus created fraudulent withdrawal slips to withdraw thousands of dollars in funds from multiple customer accounts using cashier’s checks or official checks she wrote to herself between 2008 and 2010. Niehaus illegally earned thousands of dollars through this embezzlement scheme, and she failed to report this fraudulently-obtained income on her federal income tax returns.
"As we often see, the victims are not only the taxpayers, but also the individuals and entities who suffer the financial harm," said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “This investigation is a direct result of the excellent partnership IRS, FBI, and the U.S. Attorney’s office has in combating violations of Federal law."
Embezzlement is punishable by zero to 30 years in prison. Money laundering carries a potential penalty of zero to 20 years and filing a false tax return has a sentence ranging from zero to three years in prison. The court can also impose fines and order her to pay the costs of prosecution associated with the false tax return charge. A sentencing hearing is set for January 9, 2014.
The court will conduct its own investigation prior to sentencing Niehaus, including determining the actual amount of loss to victims.
U.S. Attorney Stewart commended the cooperative investigation by special agents of the FBI and IRS, as well as Assistant U.S. Attorney Brent Tabacchi, who is prosecuting the case. U.S. Attorney Stewart also acknowledged the cooperation of U.S. Bank in the investigation.
Former Army Research Scientist Pleads Guilty to Conspiring to Defraud the GovernmentRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, before United States District Judge Terrence W. Boyle, former Army Research scientist DWIGHT WOOLARD of Raleigh, North Carolina plead guilty to conspiring to defraud the United States government, in violation of Title 18, United States Code, Section 371. At sentencing in January 2014, he faces a maximum term of imprisonment of five years, a $250,000 fine, and forfeiture of assets derived from his fraudulent activities. As part of his plea agreement, DR. WOOLARD will pay $842,403.70 in restitution to the Department of Defense.
United States Attorney Thomas G. Walker expressed his Office’s commitment to the prosecution of public officials who abuse their power for personal financial gain. “For almost a decade, Dwight Woolard abused the Army’s trust and stole monies designated for researching and developing innovative ways to protect and defend American military personnel in battle.”
According to the Government’s proffer, DR. WOOLARD worked at the Army Research Office in Durham as a Program Manager from September 1998 until his resignation in December 2012. The Army Research Office falls under the command of the United States Army Research and Development and Engineering Command whose mission is to provide integrated research, development, and engineering solutions to empower, unburden, protect, and sustain the warfighter. In his civilian position, DR. WOOLARD had control over Department of Defense funding on numerous government contracts and grants. Beginning in December 2001, DR. WOOLARD used his position to steer sub-contracts to his spouse and her company Qtronika. This work consisted of data entry for University scientists, website development for scientific research areas monitored by DR. WOOLARD and planning annual scientific conferences. In total, Dr. Woolard’s wife or her company received $842,403.70 from government funded projects.
Special Agent-in-Charge John F. Khin, Defense Criminal Investigative Service (DCIS), Southeast Field Office stated, “It is a top priority of the DCIS to ferret out and prosecute corrupt Department of Defense (DoD) officials. Former Army Engineer Dwight Woolard was terminated from his position with the Army Research Office in North Carolina in November 2012 based on findings of an investigation that he caused more than $1 million worth of DoD contracts to be awarded to his wife’s company. In addition to criminal sanctions, the DCIS is also pursuing forfeiture action to recoup losses to the Government.”
This was a joint investigation conducted by the Defense Criminal Investigative Service (DCIS) and the Army’s Criminal Investigation Division. Assistant United States Attorney Susan Menzer is prosecuting the case for the government.For Reentry After DeportationRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that yesterday in federal court, Chief United States District Judge James C. Dever III sentenced Hermelindo Velasquez-Rivera , 36, of Sonora, Mexico, to 125 months imprisonment, followed by 3 years of supervised release.
VELASQUEZ-RIVERA was named in an Indictment filed on April 3, 2013, charging him with illegal reentry into the United States after deportation subsequent to aggravated felony convictions. On June 4, 2013, velasquez-rivera pled guilty to that charge.
According to the investigation, VELASQUEZ-RIVERA, also known as “Ramon Efrain Castro” and “Hermelindo Castro”, an alien, reentered the United States after having previously been deported from the United States on October 28, 1996, on December 17, 2003, and again on April 15, 2010. VELASQUEZ-RIVERA reentered the United States after having been convicted twice of transportation of illegal aliens and twice of illegal reentry after deportation. VELASQUEZ-RIVERA was found by immigration officials in this district as a result of his arrest for driving while impaired and the vehicular death of a 37-year-old mother of two children. VELASQUEZ-RIVERA was convicted of those offenses in Wayne County, North Carolina. The instant federal conviction constitutes VELASQUEZ-RIVERA’s third for illegal reentry to the United States after deportation.Investigation of this case was conducted by the U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations.
Five People Arrested; Charged with Illegal Marijuana Grow in Boise CountyRead the Press Release
Law Enforcement Eradicates 5,585 Live Plants at Two Grow Sites on Public Lands
BOISE – Juan Pablo Villasenor-Villa, 28, Marcos Solano-Farias, 30, Carlos Cerda-Carpio, 40, and Jose Misael Ayala-Talavera, 19, all Mexican nationals, and Mariah D. Villasenor-Rodriguez, 21, of Caldwell, Idaho, were arrested last week by the Drug Enforcement Administration, Bureau of Land Management and U.S. Forest Service in connection with a large marijuana growing operation on public lands, U.S. Attorney Wendy J. Olson announced.
The complaints allege the defendants knowingly and intentionally manufactured, distributed, or possessed with intent to distribute at least 100 marijuana plants, and that three of the defendants possessed or used a firearm during or in furtherance of a drug trafficking crime. Preliminary hearings are set for 9:30 a.m. on September 27, 2013, before U.S. Magistrate Judge Candy W. Dale at the federal courthouse in Boise.
On September 11, 2013, law enforcement conducted enforcement actions on an outdoor marijuana grow located near Rabbit Creek in Boise County, Idaho. Solano-Farias, Cerda-Carpio, and Ayala-Talavera were apprehended by law enforcement at a camp located approximately 100 meters from the marijuana grow site. According to the complaints, investigators found and seized two semi-automatic handguns, an SKS or AK-47 type rifle in the sleeping area of the camp, and several hundred marijuana plants that had already been harvested from the growing operation. Investigators also located and eradicated 785 live marijuana plants. Villasenor-Villa and Villasenor-Rodriguez were arrested on September 13 in Caldwell.
During the course of the investigation of the Rabbit Creek grow, investigators learned of another grow site at Beaver Creek, also off Highway 21, where, yesterday, investigators removed over 4,800 marijuana plants from the dispersed grow site.
Olson reminded hunters and others that if they encounter signs of a marijuana grow while recreating on public lands this fall, they should leave the area immediately and report the grow to law enforcement. “Marijuana growers can be dangerous,” said Olson. “Please leave investigations to properly trained law enforcement officers. Should you encounter any evidence of a marijuana grow on public lands, please contact your nearest federal, state or local law enforcement agency or call the Drug Enforcement Administration at (208) 386-2100, or the marijuana hotline at (208) 961-1111. For more information on what to do if you encounter a marijuana grow on public lands, please visit http://fishandgame.idaho.gov/public/hunt/?getPage=276.”
If convicted, the defendants face at least five years in federal prison, a maximum fine of $5 million, and at least four years of supervised release. Those who possessed the firearms face a consecutive five year sentence.
The case is being investigated by the Drug Enforcement Administration, Bureau of Land Management, and United States Forest Service, with assistance from the Ada County Sheriff’s Office, Boise County Sheriff’s Office, Boise Police Department, City County Narcotics Unit (Canyon County Sheriff’s Office and Caldwell Police Department), the Idaho National Guard, Meridian Police Department, Nampa Police Department, Spokane Police Department, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and Washington State Police.
Felon Who Illegally Possessed Firearm in Stamford Sentenced to More Than Seven Years in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MARCELLUS CATCHINGS, 27, of Bridgeport, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 90 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on March 18, 2011, CATCHINGS engaged a Stamford Police officer in a foot chase in the vicinity of Pacific Street. During the chase, CATCHINGS pointed a firearm at the officer, and then dropped it. CATCHINGS was apprehended and officers recovered a Browning 9mm handgun. The gun’s chamber contained two bullets, indicating that someone had attempted to fire it, but that it had jammed when two bullets had simultaneously entered the chamber.
Prior to March 2011, CATCHINGS had been convicted of multiple felony offenses, including first degree robbery, possession of narcotics and carrying a dangerous weapon. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
CATCHINGS has been detained since his arrest. On January 24, 2012, he pleaded guilty to one count of possession of a firearm by a convicted felon.
Judge Chatigny ordered the 90-month federal sentence to be served concurrent with a 15-year state sentence CATCHINGS is currently serving.
This matter was investigated by the Stamford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Rahul Kale.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Federal Jury Finds Idaho Contractors GuiltyRead the Press Release
Treasure Valley Residents Convicted of Conspiracy, Obstruction of Justice, Wire and Tax Fraud
BOISE – Elaine Martin, 66, of Meridian, Idaho, the former president and majority stockholder of MarCon, Inc., was convicted by a federal jury in Boise today of 22 criminal counts, including four counts of filing false individual and corporate tax returns, two counts of conspiracy to defraud the United States, five counts of wire fraud, five counts of mail fraud, one count of false statement, three counts of interstate transportation of property taken by fraud, one count of conspiracy to obstruct justice and one count of obstruction of justice, U.S. Attorney Wendy J. Olson and Assistant Attorney General for the Tax Division Kathryn Keneally announced. Martin’s co-defendant, Darrell Swigert, 67, of Boise, a minority shareholder in Marcon, was found guilty of two counts of obstruction of justice and one count of conspiracy to obstruct justice. Sentencing for both defendants has been set for December 9, 2013, before Chief U.S. District Judge B. Lynn Winmill.
“The jury's verdicts send the strong message that those who seek federal government contracts must deal openly and honestly with the federal government,” said Olson. “I commend the cooperative investigation and prosecution in this case that involved the efforts of several agencies. This office will continue to prioritize and vigorously prosecute those who defraud the federal government and federal taxpayers.”
During the 26-day trial, the jury heard evidence that as early as 2000, Martin submitted false and fraudulent applications to have her construction company, Marcon, admitted and/or remain in two different federally funded programs, the U.S. Small Business Administration (SBA) 8(a) Program, and the Department of Transportation Disadvantaged Business Enterprise (DBE) Program. Both programs are designed to help economically and socially disadvantaged businesses compete in the marketplace. To be admitted into the program, the owner/shareholder that qualifies as socially disadvantaged must also demonstrate economic disadvantage, in part by having a personal net worth below a certain statutory cap.
According to evidence presented at trial, Martin took steps to artificially lower her personal net worth, such as acquiring, holding and transferring assets into the names of nominees in order to appear to be economically disadvantaged. This allowed Martin’s construction firm, MarCon, to qualify for the DBE and SBA 8(a) programs. Martin also caused false and fraudulent tax returns to be filed for herself and Marcon, Inc., which did not report all of the income received by Martin or the company. The false returns were submitted in support of Marcon’s applications to the SBA 8(a) Program and DBE Programs for Idaho and Utah, along with false personal financial statements. The government presented evidence that Martin omitted, deleted, altered and mis-categorized entries in Marcon’s financial books and records. Martin also concealed her role or relationship in other business entities that dealt with Marcon, Inc.
The jury heard evidence that Marcon received more than $2.5 million in government contracts based on the company’s fraudulently obtained SBA 8(a) status, and that Marcon received more than $15 million in government contracts based on the company’s fraudulently obtained DBE status in the states of Idaho and Utah.
The government presented evidence that in order to impede an IRS audit of MarCon and criminal investigation into Martin, Martin and Swigert conspired to obstruct justice by fabricating documents and making false statements that sought to conceal the true nature, source, and extent of property belonging to Martin.
The government is seeking $9,237,722.10 in forfeiture from Martin, which represents the proceeds obtained as a result of the criminal conduct.
“The Small Business Administration Office of Inspector General is committed to helping ensure that only eligible disadvantaged small businesses benefit from the SBA’s 8(a) Business Development Program. We are pleased with the jury's verdict today which sends a strong message to those who lie to obtain preferences for federal contract awards,” said Inspector General Peggy E. Gustafson of the Small Business Administration.
“This verdict should send a clear message, income tax evasion is unacceptable and those who attempt to commit such fraud will be brought to justice,” said Stephen Boyd, IRS Criminal Investigation Special Agent-in-Charge for the State of Idaho.
“The Disadvantaged Business Enterprise (DBE) Program is a business assistance program of the U.S. Department of Transportation (DOT) which helps economically and socially disadvantaged small businesses compete in the marketplace. DBE fraud harms the integrity of the program and adversely impacts law-abiding, small business contractors trying to compete on a level playing field,” said William Swallow, regional Special Agent-in-Charge of the DOT’s Office of Inspector General. “Working with our Federal, State, and local law enforcement and prosecutorial colleagues, we will vigorously pursue those who violate the law, and expose and shut down fraud schemes that adversely affect public trust and DOT-assisted highway programs.”
The charge of making and subscribing a false return is punishable by up to three years in prison and up to three years of supervised release. The charge of conspiracy is punishable by up to five years in prison and up to three years of supervised release. Wire fraud is punishable by up to 20 years in prison and up to five years of supervised release. The charge of making a false statement is punishable by up to two years in prison and up to one year of supervised release. The charge of mail fraud is punishable by up to 20 years in prison and up to five years of supervised release. Each charge of interstate transportation of property taken by fraud is punishable by up to 10 years in prison and up to three years of supervised release. The charges of conspiracy to obstruct justice and obstruction of justice are each punishable by up to five years in prison and up to three years of supervised release. The aforementioned charges are each punishable by a maximum fine of $250,000, per count.
The case was investigated by Internal Revenue Service-Criminal Investigation, Federal Bureau of Investigation, the Office of Inspector General for the U.S. Small Business Administration, and the Office of Inspector General for the U.S. Department of Transportation.
Today's announcement is part of an effort by President Obama's Financial Fraud Enforcement Task Force (FFETF), created in November 2009, to combat financial fraud crimes by waging aggressive, coordinated and proactive investigations and prosecutions. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, the task force is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Federal Judge Sends Cuban to Prison for Possessing Debit and Credit Card Account NumbersRead the Press Release
McALLEN, Texas - Pedro Garcia-Morales, a legal permanent resident from Cuba living in Donna, has been sentenced to federal prison for approximately eight years following his conviction of possessing more than 15 unauthorized access devices with intent to defraud, United States Attorney Kenneth Magidson announced today. A McAllen federal jury convicted Garcia-Morales on May 14, 2013, following one day of trial and less than two hours of deliberation.
Today, U.S. District Judge Micaela Alvarez, who presided over the trial, handed Garcia-Morales a 97-month sentence and further ordered he pay $1,359.61 in restitution. In handing down the sentence, Judge Alvarez noted that too many people think credit card abuse is a type of criminal activity that doesn’t really hurt anybody. However, it affects individuals whether they have a lot or a little in their accounts. Several victims struggled while their accounts were closed. Their accounts were overdrawn or they were financially stressed to find money to eat or pay for gas. The court noted that the defendant seemed to be living off of these people for several years.
During trial, the government contended Garcia-Morales, 41, knowingly possessed more than 500 account numbers linked to credit and debit cards belonging to people from all over the United States.
On Jan. 11, 2013, a search warrant was executed at the defendant’s home, at which time agents discovered two laptops, two flash drives, a credit card encoder and 49 gift/prepaid cards that had been encoded with stolen/unauthorized debit or credit card account numbers. The government proved Garcia-Morales knew the cards were to be used to make fraudulent purchases.
In fact, testimony of witnesses established that over a two-year period, Garcia-Morales used international hacking websites to purchase hundreds of account numbers. He then wired money internationally to hackers in China, Vietnam, Romania and the Ukraine. Encoding software on his laptops and flash drives was used to transfer the purchased account numbers on to the magnetic strips of gift/prepaid cards. The cards could then be used at retail stores to make seemly legitimate purchases. However, use of the cards unlawfully charged those transactions to others’ credit and debit card accounts.
Garcia-Morales will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
U.S. Secret Service and the Hidalgo County Sheriff’s Office investigated. The case is being prosecuted by Assistant United States Attorney (AUSA) Kristen Rees and former AUSA Patricia Rigney.
Federal Disability Discrimination Lawsuit DismissedRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that U.S. District Court Judge Edward Shea dismissed a disability lawsuit brought by a former federal employee of the Department of Energy.
According to information disclosed during the court proceedings, Mary Hollen, formerly of Richland, Washington, sued the Department of Energy claiming that her employer did not accommodate her asthma. Hollen had been an employee of the Bonneville Power Administration (BPA) and had been stationed in Richland since 1994. In her lawsuit, Hollen claimed that her asthma prevented her from working in the Tri-Cities area and that in 2006 she was forced to quit her job and move. Paper's filed in the lawsuit indicated Hollen claimed she could only work at one location "north of Seattle, west of Everett, east of Port Angeles and south of the San Juan Islands." Hollen had sought damages of about $960,000.00.
In dismissing Hollen's case, Judge Shea found that Hollen had not shown that her asthma limited ability to breathe or work when compared to the average individual. Judge Shea also found that BPA had offered Hollen reasonable accommodation but that she did not take advantage of that accommodation. He also found that her request to work from just one location was unreasonable. The court also noted that her claim that she was constructively discharged was meritless.
Michael C. Ormsby stated, "claims of employment discrimination in federal employment are taken seriously. But when meritless lawsuits are brought, our office is dedicated to vigorously defending those suits and protecting the public purse."
This case was defended on behalf of the United States by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington.
CV-11-5045-EFS
Fayetteville Woman Pleads to Involuntary Manslaugter in Death of Fort Bragg SoldierRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, SARAH ASHLEY ROGERS, 21pled guilty before Senior United States District Judge W. Earl Britt to one count of Involuntary Manslaughter in violation of Title 18, United States Code, Section 1112, and one count of Driving While Impaired in violation of Title 18, United States Code section 13, assimilating North Carolina General Statute 20-138.1.
The investigation revealed that on or about December 8, 2012, at approximately 1:40 a.m., ROGERS killed Richard Bradley Powell while driving impaired with a blood alcohol concentration exceeding the legal limit of 0.08.
Investigation of this case was conducted by the Fort Bragg Military Police, Fort Bragg Criminal Investigative Detachment, Fort Bragg Department of the Army Uniformed Police and the Federal Bureau of Investigation. Assistant United States Attorney Leslie Cooley and Special Assistant United States Attorney David Coleman prosecuted the case of the government.Escapee Sentenced to 51 Months in PrisonRead the Press Release
COUNCIL BLUFFS, IA - On September 18, 2013, Princeton C. Baker, a 25 year-old former resident of Omaha, Nebraska, was sentenced by United States District Court Chief Judge James Gritzner to 51 months in prison for escape from a federal facility. Judge Gritzner also ordered Baker to serve three years of supervised release when he completes his imprisonment. On July 3, 2012, Baker entered a guilty plea to escape from a federal facility. The basis for the charge and plea was that on November 6, 2012, Baker was transferred to a halfway house in Council Bluffs, Iowa, to complete a 27 month sentence imposed by the Federal District Court for the District of Nebraska. On November 7, 2013, Baker complained of feeling ill and staff from the CH, Inc. halfway house transported Baker to a medical facility. While being transported from the medical facility to a secure facility, Baker jumped from the moving transport vehicle and attempted to take several cars before being apprehended by Council Bluffs, Iowa, police. Judge Gritzner ordered that the 51 months be served consecutively to the prison time Baker is currently serving for attempted robbery in the State of Iowa.
The investigation was conducted by the Council Bluffs, Iowa, Police Department and the United States Marshal’s Service, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Drug Conspiracy and Money Laundering Ring Leader Heads to Prison for 30 YearsRead the Press Release
CORPUS CHRISTI, Texas – Manuel Pena aka “Super,” 48, the leader of a drug trafficking and money laundering conspiracy, has been handed a significant federal sentence, announced United States Attorney Kenneth Magidson.
Today, U.S. District Judge Janis Graham Jack determined Pena to be a leader in the conspiracy and sentenced him to a total of 360 months in federal prison. In handing down the sentence, Judge Jack considered his extensive criminal history and the need to protect the public from future criminal conduct. She further ordered he serve a five-year-term of supervised release following completion of his prison term and also ordered forfeiture of his interest in a property on Aaron Street in Corpus Christi.
Several others – Ignacio Pena aka “Nacho,” 45, Raul Leal Martinez aka “Indio” or “Wahoo,” 37, and, David Pete Dominguez aka “Buda,” 31, all also of Corpus Christi, previously pleaded guilty in relation to the case as well and were sentenced to 168, 85 and 120 months, respectively. Jose Guajardo aka “Garfield,” 41, Rocky Bazaldua aka “Rock,” 32, and Julieann Gutierrez, 25, also pleaded guilty and will be sentenced at a later date.
The indictment charged all of the defendants with conspiring from June 1, 2008, to Jan. 8, 2013, to possess with intent to distribute more than 50 grams of methamphetamine. The investigation revealed that Manuel Pena, a member of and former leader in the Texas Syndicate prison gang, orchestrated various drug deals in the Corpus Christi area. Evidence proved that in May 2011 Manuel Pena made deals to provide cocaine and methamphetamine to Bazaldua and Dominguez. He admitted he acquired cocaine and agreed to sell methamphetamine to Guajardo. Pena also received methamphetamine from Martinez, a local home builder. Ignacio Pena, Manuel Pena’s brother, helped receive and deliver various amounts of cocaine and methamphetamine to various drug dealers in Corpus Christi.
Martinez and Guajardo also pleaded guilty to conspiring to launder the proceeds of their drug sales through various financial transactions. As part of their plea agreements, Manuel Pena, Martinez and Guajardo also agreed to forfeit their interests in various properties around Corpus Christi.
Pena has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated through a joint effort by the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, Texas Department of Public Safety, the Nueces and Kleberg County Sheriff’s Offices, and the Corpus Christi, Aransas Pass and Portland Police Departments. The case is being prosecuted by Assistant United States Attorney Michael Hess.
District Man Found Guilty of Kidnapping and Sexual Abuse Charges in 2012 Attack in Northeast Washington-Defendant Sexually Assaulted Woman, Then Threw Her Down the Steps-Read the Press Release
WASHINGTON – Cornell “Man” Shumate, 30, of Washington, D.C., has been found guilty by a jury of charges stemming from the kidnapping and sexual assault of a woman in March of 2012, U.S. Attorney Ronald C. Machen Jr. announced today.
Shumate was found guilty on Sept. 18, 2013, in the Superior Court of the District of Columbia, of charges of kidnapping, attempted sexual abuse, and assault. He is to be sentenced on Nov. 22, 2013 by the Honorable John Ramsey Johnson. Shumate faces up to 12 ½ years in prison for the offenses, and lifetime sex-offender registration.
According to the government’s evidence, in March 2012, the victim met Shumate’s friend and they exchanged phone numbers. A few days later, on March 25, 2012, the victim agreed to get together with Shumate’s friend. The friend brought the victim to Shumate’s house in Northeast Washington, and they, along with several others, drank and had casual conversation.
Unbeknownst to the victim, Shumate and his friend were using her as part of a game to see if they could get a woman to have sex with every man in the apartment. After a night of drinking and socializing, the victim had consensual sex with Shumate’s friend in the apartment. After she rejected the defendant, he pushed her into his bedroom, locked the door and started to rape her. After she was able to get away, he threw her out of the apartment and down two flights of stairs. The victim reported the assault immediately and Shumate was apprehended that night.
In announcing the verdict, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department’s Sexual Assault Unit. He also praised those who handled the case for the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughan, Paralegal Specialist D’Yvonne Key, and Litigation Technology Specialist Kimberly Smith. Finally, he commended the efforts of Assistant U.S. Attorney Amy H. Zubrensky, who indicted the case, and Assistant United States Attorney Mervin A. Bourne, Jr., who prosecuted the case.
13-323Department of Justice Awards $3 Million to Support Tribal Justice and Safety in the Northern District of CaliforniaRead the Press Release
SAN FRANCISCO – The Department of Justice awarded grants totaling over $3 million to Native American tribes in the Northern District of California, announced United States Attorney Melinda Haag. The list of this year’s grantees within the Northern District of California includes the Hoopa Valley Tribe ($1,379,961), the Yurok Tribe ($924,999), the Round Valley Indian Tribes ($300,000), the Hopland Band of Pomo Indians ($300,000), and the Cahto Tribe of the Laytonville Rancheria ($299,966).
The awards were made through the Department's Coordinated Tribal Assistance Solicitation (CTAS), a single application for tribal-specific grant programs. The Department of Justice developed CTAS through its Office of Community Oriented Policing, Office of Justice Programs and Office on Violence against Women, and administered the first round of consolidated grants in September 2010. Over the past four years, it has awarded 989 grants totaling more than $437 million. Information about the consolidated solicitation is available at www.justice.gov/tribal/. A fact sheet on CTAS is available at www.justice.gov/tribal/ctas2013/ctas-factsheet.pdf. CTAS grants enhance law enforcement practices and sustain crime prevention and intervention efforts in various purpose areas including public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; violence against women; juvenile justice; and tribal youth programs.
"These grants are crucial to establishing programs to ensure safe and secure native communities in the Northern District of California,” said United States Attorney Melinda Haag. She continued: “The grants announced today will enhance law enforcement practices, sustain crime prevention and intervention efforts, improve public safety, augment community policing, emphasize efforts to combat violence against women, assist tribes with justice system planning, and provide alcohol and substance abuse programs.”
The awards in the Northern District of California were made as follows:
Hoopa Valley Tribe
- Justice Systems, and Alcohol and Substance Abuse (BJA) $501,437
- Violence Against Women Tribal Governments Program (OVW) $878,524
- Hoopa Valley Tribe Total $1,379,961
Yurok Tribe
- Public Safety and Community Policing (COPS) $299,999
- Comprehensive Tribal Justice Systems Strategic Planning (BJA) $75,000
- Violence Against Women Tribal Governments Program (OVW) $550,000
- Yurok Tribe Total $924,999
Round Valley Indian Tribes
- Public Safety and Community Policing (COPS) $300,000
Hopland Band of Pomo Indians
- Public Safety and Community Policing (COPS) $300,000
Cahto Tribe of the Laytonville Rancheria
- Public Safety and Community Policing (COPS) $299,966
Thirty U.S. Attorneys from districts that include Indian country or one or more federally recognized tribes including, U.S. Attorney Haag, serve on the Native American Issues Subcommittee (NAIS). The NAIS focuses exclusively on Indian country issues, both criminal and civil, and is responsible for making policy recommendations to the Attorney General regarding public safety and legal issues.
Next month, the Justice Department will hold its annual consultation on violence against native women on Oct. 31st, 2013, in Bismarck, N.D. In addition, an Interdepartmental Tribal Justice, Safety and Wellness Session will be held in Bismarck on Oct. 29-30, 2013. It will include an important listening session with tribal leaders to obtain their views on the Department grants, as well as valuable training and technical assistance.
Today's announcement is part of the Justice Department's ongoing initiative to increase engagement, coordination and action on public safety in tribal communities. A complete list of the 2013 awards is available at http://www.justice.gov/tribal/docs/ctas-award-list-2013.pdf
Delaware Woman Pleads Guilty to $1.8 Million Tax Fraud ConspiracyRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Beverly Newton, age 52, of Middletown, Delaware, pled guilty today to violations of 18 USC § 286 (False Claims Conspiracy), 18 USC § 1341 (Mail Fraud), and 42 U.S.C. § 408(a)(7)(B) & 18 U.S.C. § 2 (Aiding and Abetting Social Security Fraud). Newton, who will be sentenced on January 14, 2014, by the Honorable Leonard P. Stark, United States District Judge for the District of Delaware, faces a maximum sentence of twenty years in prison, a fine of $250,000, and 3 years of supervised release.
According to statements made at the plea hearing and documents filed in court, the defendant participated in a tax fraud conspiracy involving the filing of more than 180 false individual federal income tax returns with the Internal Revenue Service, using stolen identities. The returns sought refunds of more than $1.8 million. The defendant and her co-conspirators received more than $800,000 on account of the fraudulent returns. The defendant’s role in the conspiracy involved providing names and social security numbers to another co-conspirator, who used the information to file the fraudulent returns. The defendant received more than $300,000 in refunds for her part in the scheme.
U.S. Attorney Oberly gave the following comments: “This case should send a clear signal that individuals who conspire with others to file false claims against the United States Treasury will face significant penalties. My office is committed to working with the Internal Revenue Service to prosecute these cases, and I will seek incarceration wherever possible and appropriate.”
“Investigating identity theft and refund fraud is a priority for IRS Criminal Investigation,” said Akeia Conner, IRS Special Agent in Charge, Philadelphia Field Office. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. Today’s plea signifies a surrendering to the resolve of IRS Criminal Investigation and the United States Attorney’s Office to combat and bring to justice those who dare to abuse our tax system and victimize our innocent taxpayers.”
This case is the result of an investigation conducted by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, and the Social Security Administration Office of the Inspector General. The case is being prosecuted by Assistant United States Attorney Lauren Paxton.
Defendant Convicted of Felon in PossessionRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces today that Janice Ford Green of Marion, Alabama was convicted by a federal jury of possession of a firearm by a felon. Green was indicted for knowingly possessing a 7mm magnum rifle as a convicted felon and firing it at law enforcement officials on or about April 17, 2013 in Marion, Alabama in the Southern District of Alabama, Northern Division. The statutory maximum penalty provided by law is 10 years imprisonment. Sentencing is set for January 8, 2014.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives in cooperation with the Alabama Attorney General’s Office and the Alabama Bureau of Investigation. The case was prosecuted by Special Assistant United States Sinan Kalayoglu, Assistant United States Attorney Greg Bordenkircher, and Assistant United States Attorney Maria Murphy for the United States Attorney’s Office in Mobile, Alabama.
Dawn Marie Menjivar Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on September 18, 2013, before U.S. District Judge Donald W. Molloy, DAWN MARIE MENJIVAR, a 37-year-old resident of Riverton, Wyoming, was sentenced to a term of:
- Prison: 27 months
- Special Assessment: $100
- Community Service: 200 hours
- Supervised Release: 5 years
MENJIVAR was sentenced in connection with her guilty plea to conspiracy to possess with intent to distribute and distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
In October of 2010, the FBI Safe Streets Task Force (BSSSTF) received information about a large scale methamphetamine distribution organization operating in Yellowstone County.
In the spring of 2011, law enforcement began performing electronic surveillance on C.M., an individual living in Billings. Investigators discovered that C.M., MENJIVAR and Armando Hernandez-Vaca began supplying the larger methamphetamine organization in late 2010 with methamphetamine after the prior source of supply had a run in with law enforcement. During the investigation law enforcement learned that Hernandez-Vaca delivered methamphetamine to C.M., his co-conspirator, MENJIVAR, and several other individuals from approximately April 2011 to October 2011. Hernandez-Vaca regularly transported two to three pounds of methamphetamine per trip during his involvement in the conspiracy.
In approximately July of 2011, C.M. was incarcerated on non-drug related charges. MENJIVAR took over the distribution of methamphetamine and collection of money for the organization. MENJIVAR stored methamphetamine, distributed methamphetamine, collected money owed for methamphetamine, and regularly kept C.M. informed of the organizations operations while he was incarcerated.
MENJIVAR is responsible for the possession with intent to distribute and the distribution of over 50 grams of a substance containing a detectable amount of methamphetamine in the Billings area.
Hernandez-Vaca pled guilty to conspiracy to possess with the intent to distribute and distribution of methamphetamine.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that MENJIVAR will likely serve all of the time imposed by the court. In the federal system, MENJIVAR does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Billings Big Sky Safe Streets Task Force.
Dallas Man Sentenced to 150 Months in Federal Prison for Transporting and Shipping Child PornographyRead the Press Release
DALLAS — Danny Jack Harder, 39, was sentenced today by U.S. District Judge Ed Kinkeade to 150 months in federal prison and a lifetime of supervised release, following his guilty plea in March 2013 to one count of transporting and shipping child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Harder has been in custody since his arrest in December 2012 on a related federal criminal complaint.
According to documents filed in the case, the investigation of Harder began on October 25, 2013, when an officer with the Plano Police Department, operating in an undercover capacity, encountered an individual online in a peer-to-peer (P2P) file-sharing network who appeared to have several files containing child pornography.
According to the factual resume filed in the case, on November 15, 2012, special agents with the FBI executed a search warrant at Harder’s residence in Dallas. Harder admitted that he intentionally and knowingly received and transported child pornography via P2P file-sharing software and/or networks. He also acknowledged that his P2P shared folder contained well over 350 videos of child pornography. A forensic review of his computer and computer-related items indicated that he provided the password to his P2P shared folder approximately 265 times in 2011-2012 and that on October 25, 2012, his shared folder contained the equivalent of more than 600 images available for sharing.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the FBI and the Plano Police Department. Assistant U.S. Attorney Lisa J. Miller prosecuted.
Convicted Sex Offender Pleads Guilty to New OffenseRead the Press Release
BOISE — Jeremy E. Durkin, 35, of Coeur d’Alene, Idaho, pleaded guilty in federal court on September 19, 2013, to use of a facility of interstate commerce to transmit information about a minor, U.S. Attorney Wendy J. Olson announced
According to the plea agreement, the matter came to the attention of law enforcement on September 23, 2010, when, during routine cell search at the Idaho State Correctional Institution, a correctional officer found a letter on Durkin's bunk, which referenced a Yahoo e-mail account. The letter, written by Durkin, referred to the intended recipient as “you sexy sixteen-year-old.” In the letter, Durkin is asking someone he referred to in the greeting as “my Love,” to keep his (Durkin’s) Yahoo e-mail account active by logging on to it once a month and deleting all incoming mail. The letter further states: “This way I wont loose [sic] all the photos have up there. I don't really want to ask anybody else cuz there is naked photos of you that I don't want anybody to see.”
The FBI identified the victim as a high school student in Oregon. When interviewed, the youth told investigators that Durkin initiated contact in December 2009 via Facebook. The victim further stated that Durkin (who was not known by the victim prior to that time) persuaded the victim to call him at a telephone number in Idaho. The two spoke telephonically and “hit it off,” according to the victim. Durkin initially gave a false name, but not long after they met online, told the youth his true name. According to the victim, Durkin knew the teenager was 15 years old at the time.
According to the victim, from December 2009 until the summer 2010, Durkin was in constant contact via e-mail, telephone and U.S. Mail. The youth described their relationship as being almost immediately romantic and sexual, and said they exchanged sexually explicit photos. A search of Durkin’s Yahoo! account confirmed the allegations. The two never met in person; their relationship was entirely via telephone, e-mail and U.S. Mail.
In 2005, Durkin pleaded guilty in Kootenai County, Idaho, to one count of lewd conduct with a child under age 16. He was on parole and out of custody at the time the incidents occurred that resulted in the new federal charges. Durkin’s parole was revoked in 2010 and he was returned to prison. He is currently serving a state prison sentence on the Kootenai County case and is scheduled for release in 2016.
The federal charge of using a facility of interstate commerce to transmit information about a minor, when committed by a person convicted of a prior sex offense, is punishable by up to 10 years in prison, a maximum fine of $250,000, and up to lifetime supervised release.
Sentencing is set is for December 2, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Federal Bureau of Investigation and the Idaho Department of Correction. Both agencies are southern Idaho members of the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies, focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of all the participating agencies, visit www.icacidaho.org.
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.”
Cocke County Woman Who Threatened TBI Agent Sentenced to 51 Months in Federal PrisonRead the Press Release
GREENEVILLE, Tenn. – Kathleen Laws Garrett, 51, of Newport, Tenn., was sentenced on September 19, 2013, to serve 51 months in prison, by the Honorable Leon Jordan, U.S. District Judge. Garrett pleaded guilty to a May 2013 federal indictment charging her and her son, Clayton Carroll Owenby, with threatening to retaliate against a witness.
Garrett’s son, Owenby, had been previously charged in an oxycodone distribution conspiracy, which involved nine individuals obtaining prescriptions for oxycodone from various pain clinics and physicians across the state of Tennessee and then redistributing the drug in the Eastern District of Tennessee. Owenby pleaded guilty to the drug distribution conspiracy and admitted that he obtained 5,718 total dose units (totaling 176,240 milligrams) of oxycodone from multiple physicians.
While in federal custody during the pendency of his drug case, Owenby made numerous phone calls to his mother, Garrett, wherein he threated to physically retaliate against the lead case agent and his family. Garrett also made numerous threats to physically retaliate against the lead case agent and his family as well. Garrett admitted to making these threats in response to the agent’s role in the investigation concerning her son. Owenby also pleaded guilty to threatening to retaliate against a witness and was sentenced on September 5, 2013.
“This sentence reflects that threats of physical harm against agents involved in federal investigations will not be tolerated. Such threats are totally unacceptable and will be aggressively prosecuted by this office,” said U. S. Attorney William C. Killian.
This case is the result of a joint investigation by the Cocke County Sheriff’s Office and Tennessee Bureau of Investigation. Assistant U.S. Attorney Suzanne Kerney-Quillen represented the United States.
Cleveland Man Sentenced to Four Years in Prison for Mortgage Fraud, Other CrimesRead the Press Release
A former paid cooperator for a federal law enforcement agency was sentenced to more than four years in prison today for a variety of crimes related to a mortgage-fraud scheme, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Paul R. Tomko, age 40, of Cleveland, pleaded guilty in March to one count of conspiracy to commit wire fraud and wire fraud, two counts of wire fraud, one count of student loan fraud and one count of concealment.
U.S. District Judge Christopher Boyko sentenced Tomko to 52 months in prison and ordered him to pay $327,044 in restitution.
“Paul Tomko has been sentenced, yet again, for being a fraudster to the tune of hundreds of thousands of dollars,” Anthony said. “The FBI hopes he has finally learned his lesson.”
Tomko pleaded guilty in 2009 to charges related to a mortgage fraud scheme and was sentenced to three years probation in the United States District Court for the Northern District of Ohio, in Case No.1:09CR29, according to court documents.
In 2007, Tomko had signed a paid cooperation agreement with a federal law enforcement agency wherein Tomko was to take full responsibility and make full disclosure of his own mortgage fraud-related violations and assist that agency in other mortgage fraud investigations. Tomko was paid approximately $19,500 in 2007 and $7,500 in 2008 by that agency under their agreement. Tomko concealed this income from the Probation Department and also falsely stated that the law enforcement agency had approved Tomko operating a mortgage business (The Mortgage House) from his residence, according to court documents.
Tomko, through his company, OKMOT (“Tomko” backwards) Real Estate Company, recruited his housekeeper to apply for fraudulent mortgage loans for four properties between 2006 through 2007. Tomko falsely inflated the income and assets of his housekeeper in order for her to qualify for these loans, according to court documents.
Once the loans closed, Tomko fraudulently received approximately $100,000 of the proceeds by filing mechanics liens for work not performed and directing funds to himself and/or companies he owned and controlled, as well as to others not charged in this conspiracy, according to court documents.
Tomko concealed income he received as a cooperator from a federal law enforcement agency, in order to fraudulently obtain student aid and grants from the United States Department of Education, according to court documents.
The case is being prosecuted by Assistant U.S. Attorneys Christian H. Stickan and Christos M. Georgalis, following investigation by agents of the FBI, Cleveland Office and The Office of the Inspector General for the United States Department of Education.
Central Florida Drug Traffickers Sentenced to Federal Prison TermsRead the Press Release
Orlando, Florida - U.S. District Judge Charlene Edwards Honeywell today sentenced Maurice Evans (44, Orlando) to 11 years and 8 months in federal prison and James Marvin Lovett (43, Cocoa) to 12 years and 7 months in federal prison for conspiracy to possess with the intent to distribute and to distribute more than 5 kilograms of cocaine. Evans and Lovett pleaded guilty on June 24, 2013.
According to court documents, on January 29, 2013, law enforcement agents began monitoring communications between Evans and Lovett. Agents learned of their contact with a cocaine supply source located elsewhere in Florida. After making several trips to the supply source to obtain kilograms of cocaine, on February 13, 2013, agents arrested Lovett, who had three kilograms of cocaine in his car. Shortly afterwards, agents intercepted a call from Evans and the source of supply, telling the source to drop their telephones because Lovett had been arrested. Agents eventually executed a search warrant at Lovett’s house and found a cocaine re-processing operation, including a hydraulic press, press plates, aluminum molds, packaging material, scales, cut material, mixing utensils, a microwave, and cocaine.
This case was investigated by the Drug Enforcement Administration and Brevard County Sheriff's Office. It was prosecuted by Assistant United States Attorney Vincent A. Citro.
Campaign Manager Sentenced to 28 Months in Prison for Role in Conduit Contribution SchemeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Rhonda M. Glover, Acting Special Agent in Charge of the Federal Bureau of Investigation, announced that JOSHUA NASSI, 35, formerly of Fairfield, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 28 months of imprisonment, followed by one year of supervised release, for his role in a scheme to direct illegal campaign contributions into the campaign of a candidate for the U.S. House of Representatives. NASSI also was ordered to pay a $6,000 fine.
“Seeking to gain an edge in a high-pressure congressional campaign, this defendant traded promises of legislative action in exchange for illegal campaign contributions,” stated Acting U.S. Attorney Daly. “His criminal behavior undermines the principles of transparency and fairness that are the bedrock of our electoral and political processes. We are confident that this prison term, along with those previously imposed in this case, send a clear message to campaign workers whose ethics may be tested.”
“Good honest government, for the people and by the people, has no room for the actions of political insiders like Mr. Nassi, who was willing to trade influence over pending legislation in exchange for contributions to a federal campaign that he was steering,” stated Acting FBI Special Agent in Charge Glover. “The election process in this country is the very foundation of democratic society and the integrity of that process must be protected. Today’s sentence is appropriate and just, and serves as notice that the FBI and the U.S. Attorney’s Office are fully committed to investigating and prosecuting corruption at all levels of government.”
According to court documents and statements made in court, in August 2011, the State of Connecticut applied for a court order enjoining Roll Your Own (“RYO”) smoke shops from continuing to operate without complying with state law governing tobacco manufacturers. RYO smoke shops are retail businesses that sell loose smoking tobacco and cigarette-rolling materials and offer customers the option of paying a “rental” fee to insert the loose tobacco and the rolling materials into a RYO machine, which is capable of rapidly rolling large quantities of cigarettes. Customers did not pay a tax on the RYO cigarettes when rolled by the RYO machines, in contrast to cigarettes purchased over-the-counter.
Fearing that the Connecticut General Assembly would enact legislation harmful to RYO smoke shop owners’ business interests during the 2012 legislative session, certain RYO smoke shop owners and their associates engaged in a scheme to direct conduit campaign contributions into the campaign of Christopher Donovan, a candidate for the U.S. House of Representatives. At the time, Donovan was also the Speaker of the Connecticut House of Representatives. As part of the scheme, the co-conspirators recruited multiple individuals to serve as conduit contributors to the campaign. These individuals permitted checks to be written in their own names to the campaign and were then reimbursed with cash, thereby concealing the fact that RYO smoke shop owners were contributing to the campaign.
At the time, NASSI was the campaign manager for the Chris Donovan for Congress campaign.
In November and December 2011, participants in the scheme made four $2,500 conduit contributions to the Chris Donovan for Congress campaign. On approximately January 31, 2012, the campaign submitted to the Federal Election Commission (“FEC”) a report of campaign committee’s receipts and disbursements for the period October 1, 2011 through December 31, 2011. The report falsely stated the source and amount of the four $2,500 contributions that were received and deposited by the campaign committee during that time period.
On April 3, 2012, Harry “Ray” Soucy, who had helped facilitate the scheme, contacted NASSI and told him that RYO owners wanted to provide additional contributions to the campaign. That same day, the Connecticut General Assembly’s Joint Committee on Finance, Revenue and Bonding voted in favor of Senate Bill 357, legislation that would have deemed RYO smoke shop owners to be tobacco manufacturers under Connecticut law, a designation that would have subjected RYO smoke shop owners to a substantial licensing fee and tax increase. Later that day, Soucy contacted NASSI again to state his displeasure with the vote.
Approximately one week later, Soucy, RYO smoke shop owner Paul Rogers and an FBI special agent working in an undercover capacity delivered four $2,500 checks in the names of conduit contributors to NASSI. On April 23, 2012, NASSI advised Soucy that one of the checks had bounced and Soucy indicated that the contributor had been given cash to deposit. NASSI stated that the campaign needed the check by midnight the following day, and Soucy delivered a replacement check by that deadline. On May 2, 2012, the campaign submitted a fundraising report to the FEC stating that the four contributions given in April were from the conduit contributors when, in fact, they were not.
Over the next two weeks, NASSI continued to advise Soucy on the status of the RYO legislation and Soucy told NASSI that he would be delivering $10,000 if the legislation died. On May 9, 2012, the legislative session ended and the legislation had not been called for a vote by either chamber of the General Assembly.
On May 14, 2012, Soucy provided Rogers with $10,000 in cash to be used to reimburse additional conduit contributors. Soucy then collected three $2,500 checks made payable to the Donovan for Congress campaign from conduit contributors, and, at Nassi’s request, one $2,500 check from a conduit contributor that was payable to a political party. Soucy delivered the four checks to Nassi at a political event later that day.
On May 16, 2012, Soucy informed the Donovan for Congress campaign finance director Robert Braddock that one of the contributions had been made in the name of an RYO shop owner and should not be deposited, and Braddock stopped the check from being deposited. Soucy then met NASSI and provided him with a replacement $2,500 check in the name of someone who was not affiliated with any RYO shops.
On April 12, 2013, NASSI pleaded guilty to one count of conspiracy to make false statements to the Federal Election Commission and to impede the FEC’s enforcement of federal campaign finance laws.
Rogers, Soucy, Braddock and four others have also been convicted of charges stemming from this scheme.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Eric J. Glover.
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(203) 821-3722 [email protected]CITGO Agrees to Reduce Air Pollution and Pay Penalty to Resolve Clean Air Act Violations at Two RefineriesRead the Press Release
The Department of Justice and U.S. Environmental Protection Agency (EPA) announced that Houston-based CITGO Petroleum Corp. (CITGO) has agreed to pay a $737,000 civil penalty and to implement projects to reduce harmful air pollution, resolving alleged violations of the Clean Air Act (CAA) at its petroleum refining facilities located in Lemont, Ill., and Lake Charles (Westlake), La.
In addition to the penalty, today’s settlement, lodged in U.S. District Court for the Southern District of Texas, requires that CITGO implement projects that are expected to reduce emissions of volatile organic compounds (VOCs), including toxics, by more than 100 tons over the next five years.
“The terms of this settlement require projects to significantly reduce harmful air pollution, including reductions in benzene emissions and other cancer-causing air toxics,” said Robert G. Dreher, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. “This agreement will benefit communities across the United States with cleaner healthier air and will bring mobile sources of pollution under control, according to the standards of the Clean Air Act.”
“Producing fuel for cars sold in the U.S. carries a requirement to meet Clean Air Act standards,” said Cynthia Giles, Assistant Administrator for EPA's Office of Enforcement and Compliance Assurance. “The innovative technologies that CITGO is required to install will reduce the impact of its fuel production on the environment and help protect communities from harmful air pollution.”
To reduce VOC emissions, including toxics, the settlement requires that CITGO install and maintain a geodesic dome on one of the fuel storage tanks at its Lemont refinery, as well as carbon adsorption systems on two fuel storage tanks at its Lake Charles refinery.
In a complaint filed at the same time as the settlement, EPA alleged that the Lake Charles refinery produced fuel that exceeded the refinery’s annual average emissions limit for mobile source air toxics, including benzene. EPA further alleged that CITGO failed to sample and test reformulated gasoline blendstock at its Lemont refinery, as required by the CAA.The CAA requires that all fuel produced, imported, and sold in the United States meet certain emissions standards for harmful pollutants, such as benzene and other cancer-causing air toxics. Air toxics emissions from vehicles and other mobile sources are of particular concern in the areas closest to where they are emitted, but can also be transported long distances, affecting the health and welfare of people in other geographic areas. Some of these toxic compounds can persist in the environment and bioaccumulate in the food chain, further spreading their harmful effects.
The sampling, testing, recordkeeping, and reporting requirements of the fuels program provide the foundation for EPA’s compliance program. Refiners that violate these requirements undermine the integrity of the fuels regulations and hinder the Agency’s ability to ensure gasoline complies with fuel quality and performance standards, potentially leading to an increase in harmful air pollution. Today’s settlement supports EPA’s efforts to reduce toxic air pollution from facilities that threaten communities and the environment.
CITGO is a refiner and marketer of transportation fuels, lubricants, petrochemicals and other industrial products. CITGO is owned by PDV America Inc., an indirect, wholly-owned subsidiary of Petróleos de Venezuela, S.A. (PDVSA), the national oil company of the Bolivarian Republic of Venezuela.
The settlement is subject to a 30-day public comment period and final court approval. It will be available for viewing at www.justice.gov/enrd/Consent_Decrees.html.
More information on the settlement: www2.epa.gov/enforcement/citgo-petroleum-corporation-clean-air-act-settlement.
Buffalo Gang Members Plead Guilty to Cocaine ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Tramell McGee, 30, who was convicted of conspiracy to trafficking cocaine, was sentenced to 60 months in prison by Chief U.S. District Judge William M. Skretny.
According to Assistant U.S. Attorney Timothy C. Lynch, who handled the case, the defendant was a members of the "Camp Street Boys" which operated on Buffalo's East Side. McGee was one of the leaders of the gang. The defendant and others distributed the crack cocaine in the vicinity of Jefferson Avenue and Genesee Street in Buffalo.
The defendant was arrested along with 10 others in June 2011, to date eight of the defendants have been convicted.
“This represents the second gang member convicted in Federal Court this week,” said U.S. Attorney Hochul. “We will continue to work with our law enforcement partners to remove all such criminals from the streets of our communities.”
The sentencing is the culmination of an investigation on the part the Federal Bureau of Investigation's Safe Streets Task Force, under the direction of Acting Special Agent in Charge Brian P. Boetig and the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division.Bourg, Louisiana Man, Roddy Vizier, Sentenced for Child Pornography ChargesRead the Press Release
RODDY VIZIER, 41, of Bourg, Louisiana, was sentenced today before U.S. District Court Jane Triche Milazzo to 66 months incarceration for crimes involving the sexual exploitation of children, announced U. S. Attorney Dana J. Boente. Following the term in incarceration, VIZIER will be placed on ten years of supervised release and will be required to register as a sex offender.
According to court documents, on December 14, 2012, VIZIER was indicted by a federal grand jury for Receipt of Materials Involving the Sexual Exploitation of Minors and was arrested by federal agents with the U. S. Department of Homeland Security, Homeland Security Investigations (HSI). On March 28, 2013, VIZIER pled guilty in federal court to the indictment. According to documents filed in federal court, special agents with HSI determined VIZIER was downloading images depicting the sexual victimization of children through the use of peer-to-peer file sharing software. Federal agents learned from Customs and Border Protection officers that VIZIER was a crew member aboard the maritime vessel Harvey War Horse II which was docked in Port Fourchon, LA and was scheduled to depart for Jamaica. HSI agents boarded the vessel and searched VIZIER’s computer and determined VIZIER had downloaded 26 videos and 789 images of child pornography.
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."
This case was investigated by special agents from the U. S. Department of Homeland Security, HSI. The prosecution of this case was handled by Strike Force Chief and Project Safe Childhood Coordinator, Assistant U. S. Attorney Brian M. Klebba.
Astatula Businessman Charged with $44 Million Bank Fraud SchemeRead the Press Release
Orlando, Florida - Acting United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Pedro Benevides (44, Astatula) with conspiracy to commit bank fraud, nine counts of bank fraud, and nine counts of making false statements to financial institutions. If convicted, Benevides faces a maximum penalty of 30 years in federal prison and a $1million fine for each of the nineteen charged counts. The indictment also notifies Benevides that the United States is seeking a money judgment in the amount of $44,059,565.00, the proceeds of the charged conspiracy.
According to the indictment, from about 2005 through about September 2008, Benevides, using several businesses that he controlled, participated in a conspiracy and a fraudulent scheme to obtain $44,059,565.00 in various loans from federally insured financial institutions. Benevides allegedly submitted and caused the submission of documents to those institutions that contained materially false and fraudulent information. In particular, he submitted and caused the submission of documents that, among other things: (a) contained false information concerning the income and assets of the person or entity in whose name Benevides sought the loans, mortgages, and lines of credit; (b) were false and forged business and personal tax return documents; (c) were false and forged financial statements that purported to be from financial institutions; (d) were false and forged bank statements; (e) were a false and forged official checks; and (f) were false and forged correspondence from a title and escrow company that purported to show funds held for the benefit of entities that Benevides controlled, which funds did not actually exist.
On occasion, Benevides also submitted false loan applications supported by the false documents and signed documents certifying the accuracy of the false documents. Once Benevides obtained the loans, he used the funds from the loans to pay the interest and principal on previously obtained loans, which he had also obtained through fraud. Benevides also used the funds from the loans to fund his lifestyle and the businesses he controlled.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service - Criminal Investigation, U.S. Immigration and Customs Enforcement's Homeland Security Investigations, the United States Secret Service, and the St. Cloud IRS-USSS Federal Financial Crimes Task Force. It will be prosecuted by Assistant United States Attorney Daniel C. Irick.
A Former Resident of Troy Sentenced to Serve Six Years in Prison for Fraud and Tax EvasionRead the Press Release
Scott Atkins, 44, of Scottsdale, Arizona, and a former resident of Troy, Michigan, was sentenced on September 18, 2013 to serve 6 years in custody, for operating an advanced fee fraud scheme and tax evasion, United States Attorney Barbara L. McQuade announced today.
Imposing the sentence was U.S. District Judge Marianne O. Battani.According to information provided to the court at the April 17, 2013 guilty plea hearing, from February 2005 through August 10, 2010, Atkins, falsely portraying himself as a hedge fund manager and/or an attorney, solicited large advanced fees by falsely promising to arrange large commercial loans for over 50 individual and commercial clients throughout the nation. In fact, Atkins had no means to secure such funding and never intended to do so. Moreover, Atkins' never intended to keep his promises that the advanced fees would be refunded should financing not materialize, but rather, always intended to use the funds to pay for personal expenses. As a result of these activities, Atkins' clients lost over $1,400,000.00.
In addition, Atkins never reported or paid any income taxes on any of the funds he received during that period, and evaded his income tax liability, totaling over $270,000, by opening bank accounts in the names of fictitious entities, sometimes using the social security number of his minor daughter, and depositing funds into those accounts, or transferring or directing his income into accounts controlled by his mother.
Upon his release from custody, the Court ordered Atkins to serve 3 years on supervised release, and pay restitution of over $1,730,000 to the victims of his advanced fee fraud scheme, as well as related investment fraud, and $270,094 to the Internal Revenue Service.
FBI Acting Special Agent in Charge John Robert Shoup stated “We are very proud of the work done by the FBI and the IRS Criminal Investigation Division in this complex case. Large-scale financial crimes have a tremendous negative impact on our economy, and the FBI remains committed to investigating them.”
"Atkins is a scam artist. He took money from people with no intention of producing what he promised. He used the money for his own personal gain," said Acting Special Agent in Charge Carolyn Weber. "IRS Criminal Investigation will thoroughly investigate those who blatantly steal from others and fail to pay their taxes."
The investigation of this case was conducted by the F.B.I and I.R.S. Criminal Investigations.
6 Ordered to Prison in Drug ConspiracyRead the Press Release
McALLEN, Texas – A total of six people have been ordered to prison for terms ranging from approximately 10-24 years for their respective roles in a marijuana and cocaine conspiracy, announced United States Attorney Kenneth Magidson.
Jose Guadalupe Rangel-Hernandez, 51, of Miguel Aleman, was sentenced today by U.S. District Judge Randy Crane to a 292-month-term of federal imprisonment. Area residents Carlos Guerra, 36, of Pharr; Guy Oshiro Lugo, 48, of Alamo; Lineth Guerra, 39, of Mission; and Deborah Garcia, 46, and Alberto Aguirre, 49, both of Weslaco, received sentences of 210, 168, 160, 121 and 235 months, respectively.
All the defendants had previously entered pleas of guilty to one count of conspiring to possess with the intent to distribute more than 1,000 kilograms of marijuana. Additionally, Carlos Guerra and Lineth Guerra were found guilty of conspiring to possess with the intent to distribute more than five kilograms of cocaine.From 2009 and 2011, the defendants were part of drug conspiracy headed by Israel Garcia which was responsible for distributing thousands of tons of marijuana and multi-kilogram quantities of cocaine. In January 2011, Israel Garcia and Lineth Guerra were arrested in a hotel in McAllen and found to be in possession of more than $300,000. Additionally, information obtained as a result of their apprehension led to the seizure of more than 7,000 kilograms of marijuana.
The investigation revealed Rangel-Hernandez, Carlos Guerra, Lineth Guerra and Deborah Garcia all assisted Israel Garcia in transporting the narcotics from the Rio Grande Valley to Florida, Georgia and Ohio.Israel Garcia was also convicted and will be sentenced at a later date.
The investigation leading to the charges was conducted by the Homeland Security Investigations, Drug Enforcement Administration and Texas Department of Public Safety. Assistant United States Attorney James Sturgis prosecuted the case.
11 Defendants Charged with Federal Crimes Related to Stolen Identity Tax Fraud SchemeRead the Press Release
STATESBORO, GA - Two federal indictments, unsealed today in federal court, have charged 11 defendants with conspiracy to commit theft of public money and access device fraud in connection with fraudulent tax returns. Both of these indictments allege that the defendants illicitly obtained and possessed debit cards and tax refund checks stemming from the preparation and submission of fraudulent tax returns. The initial court appearances were held today at 10:00 a.m. in the Federal Courthouse in Statesboro, Georgia.
United States Attorney Edward J. Tarver said, “These indictments demonstrate the continued commitment of the United States Attorney’s Office to protecting the hard-earned money of honest taxpayers. Our law enforcement partners will continue to investigate and prosecute those who seek to profit from the preparation and filing of fraudulent tax returns.”
IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot said, "Today's announcement exemplifies the intense focus on the rigorous pursuit of identity theft by IRS and our law enforcement partners. IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority and we will continue to vigorously pursue those who undermine the integrity of the U.S. tax system."
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, "The FBI will continue to work with our local, state, and other federal law enforcement partners to aggressively pursue criminals who defraud the U.S. government by stealing the identities of unwitting and innocent victims.”
Joshua Waites, Chief, Office of Special Investigations, Georgia Department of Revenue, stated, “Today’s arrests show how serious the State of Georgia is at finding and arresting individuals committing identity theft fraud. The Georgia Department of Revenue will continue to work with our federal and local law enforcement officials to combat this growing trend.”
Statesboro Director of Public Safety Wendell Turner said, “The Statesboro Police Department has been working with our local and federal counterparts to apprehend the persons responsible for defrauding the government and individuals through a variety of criminal schemes. We are very proud of these partnerships and the results they yield for our citizens. This investigation is just another example of everyone working together, sharing resources, information and expertise for the common good of our community.”
Mr. Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
FBI Special Agent Marcus Kirkland, IRS Special Agent Gwen Weston and SPD Sgt. James Winskey, assisted by their agencies’ colleagues, conducted the investigation which led to the indictments. The United States Marshals Service, Georgia State Patrol, Georgia State Probation Office, Sylvania Police Department and the sheriff’s offices for Bulloch and Screven counties assisted in the arrests of numerous defendants.
Assistant United States Attorneys David Stewart and Lamont A. Belk are prosecuting the cases on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
List of 11 Federal Defendants
RICHARD PARKER, 60, of Sylvania, Georgia
EULA MAE RODRIGUEZ, 47, of Sylvania, Georgia
TACARRO MORGAN, 25, of Sylvania, Georgia
SIRBRINA BANGS, 26, of Statesboro, Georgia
DEQUILLIA HILL, 43, of Sylvania, Georgia
KANDICE WHITE, 25, of Sylvania, Georgia
ALECEIA LOVETT, 29, of Statesboro, Georgia
CIERRA JOHNSON, 22, of Statesboro, Georgia
DANIELLE CLARK, 26, of Statesboro, Georgia
DEVANG SHAH, 32, of Sylvania, Georgia
TAMEIKA CLARK, 24, of Statesboro, Georgia
10th Defendant Charged with Allegedly Participating in Food Stamp Fraud ConspiraciesRead the Press Release
PROVIDENCE, R.I. – Mashhod Afzal, 25, of North Providence, an employee of the Stop & Go convenience store in Providence, one of five convenience stores previously identified in court records as locations where store owners and employees were allegedly participating in conspiracies to defraud the food stamp program, was named in a federal superseding indictment returned by a grand jury on Wednesday which charges him with conspiracy, food stamp fraud and lying to a federal agent, announced United States Attorney Peter F. Neronha.
On September 5, 2013, United States Attorney Peter F. Neronha announced the findings to date of an ongoing two-year investigation which uncovered more than $3 million dollars of alleged fraud of the food stamp program in Rhode Island. At the time, United States Attorney Neronha announced criminal charges had been filed in federal court against nine Providence convenience store owners and employees.
It is alleged in court records that a pattern of conspiracies and Supplemental Nutrition Assistance Program (SNAP) benefits abuse was revealed when federal law enforcement undercover investigators visited area convenience stores; examined thousands of documents, bank records and tax filings; and reviewed information and evidence seized during the execution of court authorized search warrants at several businesses on April 1, 2013.
It is alleged in court documents that store owners and/or employees allowed SNAP benefit recipients to use their Electronic Benefit Transfer cards to exchange their SNAP benefits for cash, a violation of the program’s laws and regulations. It is alleged that in return, the defendants added a surcharge to the recipients’ withdrawal of SNAP benefits, usually an amount equal to that of the amount of cash benefit received by the recipient. SNAP benefit funds are transferred electronically directly to accounts managed by the retailer.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The cases are being prosecuted in U.S. District Court in Providence by Assistant U.S. Attorneys Sandra R. Hebert and Richard B. Myrus.The investigation is being conducted by the United States Attorney’s Office; the U.S. Department of Agriculture, Office of Inspector General; U.S. Department of Agriculture, Food and Nutrition Service - Retailer Investigations Branch; Internal Revenue Service Criminal Investigation; and the Rhode Island State Police
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]
18 September 2013
Wounded Knee Man Sentenced for Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wounded Knee, South Dakota, man convicted of Abusive Sexual Contact was sentenced on September 12, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Wayne Simon Yellow Shield, age 44, was sentenced to 3 years’ probation and ordered to pay $100 to the Federal Crime Victims Fund, a $250 fine, and restitution in an amount to be determined later.
On November 3, 2011, at Wounded Knee, Yellow Shield engaged in sexual contact with a woman without her consent. He pled guilty on May 10, 2013.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.White River Man Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that Nathan First In Trouble, age 34, of White River, South Dakota, appeared before U.S. District Judge Roberto A. Lange on September 16, 2013, and pled guilty to Count I of the Indictment that charged him with Failure to Register as a Sex Offender.
The maximum penalty upon conviction is 10 years of imprisonment and/or a $250,000 fine and 5 years of supervised release. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
Around April 13, 1998, First In Trouble was convicted of Sexual Abuse of a Minor in U.S. District Court and sentenced to 30 months' imprisonment. He was also ordered to register as a sex offender. During the time period of February to April of 2013, First In Trouble registered as a sex offender at his father’s residence in Mellette County. However, he was not residing there. He went to Pierre at some point in January of 2013 and started working and staying in Pierre until March of 2013 when he was arrested. During the time he was working in Hughes County he should have properly registered as a sex offender, including updating his residence and his employment information.
The investigation was conducted by the U.S. Marshals Service. Assistant U.S. Attorney Tim Maher prosecuted the case.
First In Trouble was remanded to the custody of the U.S. Marshals Service pending sentencing, which has been set for November 26, 2013.
White River Man Pleads Guilty to Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that Theodore Larvie, age 23, of White River, South Dakota, appeared before U.S. District Judge Roberto A. Lange on September 16, 2013, and pled guilty to Count I of the Indictment that charged him with Assault With a Dangerous Weapon.
The maximum penalty upon conviction is 10 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The conviction stems from an incident on November 8, 2012. Larvie jumped on the victim’s back, biting him on the arm and taking him to the ground. During the altercation, Larvie also stabbed the victim several times with a knife. The victim received treatment at the Jones County Hospital in Murdo for his stab wounds.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Larvie was remanded to the custody of the U.S. Marshals Service pending sentencing, which has been set for December 2, 2013.
Westmoreland County Man Sentenced to 21 Years in Prison for Producing Child PornRead the Press Release
PITTSBURGH - A Westmoreland County man has been sentenced in federal court to 252 months of imprisonment, 180 months of which will run concurrent with his state conviction, and 72 months of which will run consecutive to any state sentence, and was ordered to serve a lifetime term of supervised release on his conviction for production of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Timothy Eugene Shearer, 55, formerly of Avonmore, Pa.
According to information presented to the court, from February of 2009 to September of 2009, and in or around October of 2006, Shearer persuaded, induced, and coerced a minor to engage in sexually explicit conduct, for the purpose of producing visual depictions of that conduct, namely a digital video and other images. The indictment also charged that Shearer possessed visual depictions, namely, digital image files and a video file, depicting minors engaging in sexually explicit conduct.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Shearer.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Washington Man Pleads Guilty to Conspiracy to Export Computers and Services to IranRead the Press Release
Tampa, Florida - Acting United States Attorney A. Lee Bentley, III announces that John Alexander Talley (42, Seattle, Washington), and his company, Tallyho Peripherals, Inc. d/b/a Enterprise Solutions Systems, today pleaded guilty to conspiracy to violate the International Emergency Economic Powers Act and the Iranian Transaction Regulations. Talley faces a maximum penalty of five years in federal prison.
According to the plea agreement, from approximately 2009 to September 2012, Talley and his company conspired with others to unlawfully export sophisticated enterprise level computer equipment from the United States to Iran, and to provide computer IT support services for the equipment, all in violation of the United States embargo. Talley’s role was to provide training and computer IT support to ensure that the computer equipment operated in Iran. In an effort to conceal their activities, the conspirators in the United States caused shipments of the computers and related equipment, as well as the payments for same, to travel to and from the United States and Iran through the United Arab Emirates. Similarly, payments for Talley’s support services were transmitted through the UAE.
On September 12, 2013, two Iranian nationals, Mahmood Akbari a/k/a John Wassermann and Reza Hajigholamali, and three United Arab Emirate “front” companies, Patco Group Ltd., Managed Systems and Services (FZC), and TGO General Trading LLC a/k/a Three Green Orbit, were indicted in connection with the same conspiracy to violate the Iranian Embargo. Those parties are charged with conspiracy to violate the International Emergency Economic Powers Act and the Iranian Transaction Regulations, and a conspiracy to commit international money laundering. If convicted, Akbari and Hajigholamali each face a maximum penalty of up to 40 years in federal prison.
On July 11, 2012, co-conspirator Mohammad Reza “Ray” Hajian and three of his companies, RH International LLC, Nexiant LLC, and P & P Computers LLC, pleaded guilty to conspiracy to violate the International Emergency Economic Powers Act and the Iranian Transaction Regulations. On October 18, 2012, Hajian was sentenced to four years in federal prison.
"The magnitude and scope of the threats facing the United States has never been greater than today, and that's why Homeland Security Investigations investigates individuals who try to export sensitive technologies to embargoed nations," said Sue McCormick, special agent in charge of Homeland Security Investigations Tampa. "Homeland Security Investigations and our partners at the Department of Commerce take pride in protecting our country, and today’s guilty plea is the latest example of our effective investigative efforts."
"Today's guilty plea is another step to dismantle a complex diversion scheme to illegally divert U.S.-origin technology through the United Arab Emirates to Iran. We will continue to pursue those who present a threat to our national security and prosecute them to the fullest extent of the law," said Robert Luzzi, Special Agent-in-Charge, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, Miami Field Office.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Department of Commerce, Office of Export Enforcement. It is being prosecuted by Assistant United States Attorneys Rachelle DesVaux Bedke and Mark E. Bini and U.S. Department of Justice Trial Attorney Mariclaire Rourke.
Virginia Man Sentenced to 40 Months in Prison for Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with A MinorRead the Press Release
WASHINGTON – George G. Kahl, 42, was sentenced today to 40 months in prison for traveling interstate to engage in illicit sexual conduct with a minor, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Kahl, of Alexandria, Va., pled guilty in April 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Rosemary M. Collyer. Upon completion of his prison term, Kahl will be placed on 10 years of supervised release.
According to the government's evidence, on Feb. 9, 2013, Kahl contacted a man he believed to be the father of an under-aged female child on a social network site. That man turned out to be an undercover officer with the FBI's Child Exploitation Task Force. Over the next few days, Kahl engaged in graphic online e-mail and text message conversations with the undercover officer. During these conversations, Kahl arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the purported child. On Feb. 22, 2013, Kahl traveled from Alexandria to Washington, D.C. for that purpose and was arrested.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
13-321UBS Securities Japan Co. Ltd Sentenced<br /> for Long-running Manipulation of LiborRead the Press Release
UBS Securities Japan Co. Ltd. (UBS Securities Japan), an investment bank, financial advisory securities firm and wholly-owned subsidiary of UBS AG, was sentenced today for its role in manipulating the London Interbank Offered Rate (LIBOR), a leading benchmark used in financial products and transactions around the world, the Justice Department announced.
UBS Securities Japan was sentenced by U.S. District Judge Robert N. Chatigny in the District of Connecticut. UBS Securities Japan pleaded guilty on Dec. 19, 2012, to one count of engaging in a scheme to defraud counterparties to interest rate derivative trades by secretly manipulating LIBOR benchmark interest rates. UBS Securities Japan signed a plea agreement with the government in which it admitted its criminal conduct and agreed to pay a $100 million fine, which the court accepted in imposing sentence. In addition, UBS AG, the Zurich-based parent company of UBS Securities Japan, entered into a non-prosecution agreement (NPA) with the government requiring UBS AG to pay an additional $400 million penalty, to admit and accept responsibility for its misconduct as set forth in an extensive statement of facts and to continue cooperating with the Justice Department in its ongoing investigation. The NPA reflects UBS AG’s substantial cooperation in discovering and disclosing LIBOR misconduct within the financial institution and recognizes the significant remedial measures undertaken by new management to enhance internal controls.
Together with approximately $1 billion in regulatory penalties and disgorgement – $700 million as a result of a Commodity Futures Trading Commission (CFTC) action; $259.2 million as a result of a U.K. Financial Conduct Authority (FCA) action; and $64.3 million as a result of a Swiss Financial Market Supervisory Authority (FINMA) action – the Justice Department’s criminal penalties bring the total amount of the resolution to more than $1.5 billion.
“This action, and the resulting sentence, prove that no individual or firm is above the law – no matter what,” said Attorney General Eric Holder. “The Department of Justice will continue to stand vigilant against corporations or individuals who threaten the integrity of our financial markets, undermine the stability of our economy, or jeopardize the well-being of our citizens. And, when supported by the facts and the law, we will never hesitate to use every tool and authority available to us to hold accountable those who illegally take advantage of others for their own financial gain.”
“Through its guilty plea and sentence, UBS has been held to account for deliberately manipulating LIBOR, one of the cornerstone interest rates in our global financial system,” said Acting Assistant Attorney General Mythili Raman of the Criminal Division. “The $1.5 billion global resolution against UBS – of which this guilty plea and sentence are a critical element – is just one of several actions we have taken against financial firms throughout the world that sought to illegally influence LIBOR. As we continue our active and ongoing investigation of the manipulation of LIBOR, our prosecutors and agents will continue to tenaciously follow the evidence wherever it leads. Neither UBS, nor the individual UBS defendants we have charged in connection with this sophisticated scheme, nor any other bank or individual, is above the law.”
According to documents filed in these cases, LIBOR is an average interest rate, calculated based on submissions from leading banks around the world, reflecting the rates those banks believe they would be charged if borrowing from other banks. LIBOR serves as the primary benchmark for short-term interest rates globally, and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products. The Bank of International Settlements estimated that as of the second half of 2009, outstanding interest rate contracts were estimated at approximately $450 trillion.
LIBOR, published by the British Bankers’ Association (BBA), a trade association based in London, is calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year. The LIBOR for a given currency at a specific maturity is the result of a calculation based upon submissions from a panel of banks.
Beginning in September 2006, UBS Securities Japan and a senior trader employed in the Tokyo office of UBS Securities Japan orchestrated a sustained, wide-ranging and systematic scheme to move Yen LIBOR in a direction favorable to the trader’s trading positions, defrauding UBS’s counterparties and harming others with financial products referencing Yen LIBOR who were unaware of the manipulation. Between November 2006 and August 2009, the senior trader or a colleague of the senior trader endeavored to manipulate Yen LIBOR on at least 335 of the 738 trading days in that period, and during some periods on almost a daily basis. Because of the large size of the senior trader’s positions, even slight moves of a fraction of a percent in Yen LIBOR could generate large profits. For example, the senior trader once estimated that a 0.01 percent movement in the final Yen LIBOR fixing on a specific date could result in a $2 million profit for UBS.
According to the charging documents, UBS Securities Japan and the senior trader employed three strategies to execute the scheme: causing UBS to make false and misleading Yen LIBOR submissions to the BBA; causing cash brokerage firms, which purported to provide market information regarding LIBOR to panel banks, to disseminate false and misleading information about short-term interest rates for Yen, which those banks could and did rely upon in formulating their own LIBOR submissions to the BBA; and communicating with interest rate derivatives traders employed at three other Yen LIBOR panel banks in an effort to cause them to make false and misleading Yen LIBOR submissions to the BBA.
In entering into the NPA with UBS AG, the Justice Department considered information from UBS and from regulatory agencies in Switzerland and Japan demonstrating that in the last two years UBS has made important and positive changes in its management, compliance and training to ensure adherence to the law. The Department received favorable reports from the FINMA and the Japan Financial Services Authority (JFSA) describing, respectively, progress that UBS has made in its approach to compliance and enforcement and UBS Securities Japan’s effective implementation of the remedial measures the JFSA imposed based on findings relating to the attempted manipulation of Yen benchmarks.
The investigation was conducted by the FBI’s Washington Field Office. The prosecution is being handled by Deputy Chiefs Daniel Braun and William Stellmach and Trial Attorneys Thomas B.W. Hall and Sandra L. Moser, along with former Trial Attorney Luke Marsh, of the Criminal Division’s Fraud Section. Assistant U.S. Attorneys Eric Glover and Liam Brennan of the U.S. Attorney’s Office for the District of Connecticut have provided valuable assistance. The Criminal Division’s Office of International Affairs also provided assistance in this matter.
The investigation leading to these cases has required, and has greatly benefited from, a diligent and wide-ranging cooperative effort among various enforcement agencies both in the United States and abroad. The Justice Department acknowledges and expresses its deep appreciation for this assistance. In particular, the CFTC’s Division of Enforcement referred this matter to the Department and, along with the FCA, has played a major role in the investigation. The SEC has also played a significant role in the LIBOR series of investigations and, among other efforts, has made an invaluable contribution to the investigation relating to UBS. The Department of Justice also wishes to acknowledge and thank FINMA, the Japanese Ministry of Justice, and the JFSA. Various agencies and enforcement authorities from other nations also have participated in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the Department is grateful for their cooperation and assistance.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force (FFETF). President Obama established the interagency FFETF to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force 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, to 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. For more information about the task force visit: www.stopfraud.gov.
U.s. Attorney Hogsett Announces Charges Against Indiana-based Biofuels Fraud SchemeRead the Press Release
INDIANAPOLIS – U.S. Attorney Joseph H. Hogsett, along with Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division, announced today the return of two indictments against six individuals and three companies for offenses involving federal renewable fuel programs, allegedly creating losses to victims totaling more than $100 million. An additional defendant was charged today by federal information, and has petitioned the court to enter a plea of guilty and cooperate with investigators. The 88 counts included in the three charging documents include allegations of conspiracy, wire fraud, false tax claims, false statements under the Clean Air Act, obstruction of justice, money laundering and securities fraud.
“This morning, federal agents brought into custody individuals who allegedly operated the largest tax and securities fraud scheme in Indiana history,” Hogsett said. “This case represents a collaborative effort on the part of law enforcement to hold fully accountable those who seek personal profit at the taxpayer’s expense.”
“Congress enacted incentives for the production of biofuels to make the United States stronger and more energy independent,” said Dreher. “Fraud by parties claiming such incentives threatens these important public policies. The Justice Department will vigorously prosecute those seeking to line their pockets using scams like those alleged in this indictment.”
The Law
The Energy Independence and Security Act of 2007 created a number of federally-funded programs that provided monetary incentives for the production of biodiesel. A dollar-per-gallon tax credit was available only to the first person to blend the pure biodiesel (known as B100) with petroleum diesel. After the biodiesel was blended and the tax credit claimed, the resulting product was generally known in the industry as B99, meaning that it was approximately 99% biodiesel and 1% petroleum diesel. Additionally, biodiesel producers could generate and attach credits known as “renewable identification numbers” or RINs to biodiesel they produced. Because certain companies need RINs to comply with regulatory obligations, RINs have significant market value. These two incentives were available only once for any given volume of biodiesel. For these reasons, a gallon of B100 with RINs and an available tax credit was worth much more than a gallon of RIN-stripped B99. At times during the conspiracy, a gallon of B100 with RINs was worth up to $2 more than an equivalent gallon of B99, effectively doubling its value.
The Defendants
Four of the defendants—Craig Ducey, Chad Ducey, Chris Ducey and Brian Carmichael— operated E-Biofuels, a Middletown, Indiana company that held itself out as a producer of biodiesel from “feedstocks” such as animal fat and vegetable oils. The government alleges that these defendants conspired with Joseph Furando and Evelyn Katirina Pattison—two executives with a pair of related New Jersey-based companies that operated under the names Caravan Trading Company and CIMA Green—to purchase RIN-stripped B99 from third parties, pretend that E-Biofuels had produced that fuel at its Middletown facility and fraudulently resell that fuel to customers as B100 with RINs and an available tax credit. While the E-Biofuels facility was capable of producing B100, at times during the conspiracy it was producing no fuel of its own, but instead was simply acting as a pass-through facility for fuel purchased elsewhere.
The Alleged Conspiracy
The indictment alleges that beginning in July 2009 and continuing until May 2012, these defendants fraudulently sold more than 35 million gallons of RIN-stripped B99 to unwitting customers who paid an inflated price, thinking they were purchasing B100 with RINs and an available tax credit. All told, the customers were allegedly defrauded of more than $55 million as a result of these activities and the Internal Revenue Service was exposed to as much as $35 million in false claims.
The government alleges that the defendants delivered the fraudulently mislabeled fuel to the victims in one of three ways. In some cases, the biodiesel was transported from fuel terminals to the E-Biofuels facility in Middletown where it was unloaded into a holding tank. A short time later, the biodiesel would be reloaded into tanker trucks and delivered to unsuspecting customers along with fraudulent paperwork that misidentified it as B100 with RINs produced by E-Biofuels. On other occasions, the truck drivers did not unload the fuel when they arrived at Middletown plant. Instead, they simply picked up paperwork falsely stating that the truck contained a load of B100 with RINs that originated at the E-Biofuels facility. The truck drivers referred to this procedure as “flipping a load.”
Finally, in the most egregious instances, the truck drivers hauled RIN-stripped B99 from fuel terminals directly to customers. Because these loads never went to the E-Biofuels facility they were known as “ghost loads” or “phantom loads.” In those cases, the defendants faxed or e-mailed the false paperwork to the truck drivers along their routes between the fuel terminals and the customer locations.
In an information filed today in federal court, Brian Carmichael was charged with one count of conspiracy to defraud the United States. Carmichael has filed a petition with the court indicating his willingness to plead guilty to this charge. Carmichael faces up to five years in federal prison if convicted.
The Alleged Securities Fraud
In May 2010, E-Biofuels was purchased by Imperial Petroleum, a publicly traded company based in Evansville. After the acquisition, E-Biofuels accounted for more than 97% of Imperial Petroleum’s operating income. Defendant Jeffrey Wilson was the president and chief executive officer of Imperial Petroleum.
The government alleges that Jeffrey Wilson and Craig Ducey knew that E-Biofuels was purchasing biodiesel from third parties instead of making its own biodiesel. They hid this fact from Imperial’s investors, shareholders and outside auditors by falsely stating that E-Biofuels produced biodiesel from chicken fat and other feedstocks. They made these and other related false statements and omissions in Imperial Petroleum’s annual and quarterly reports filed with the Securities and Exchange Commission and in written and oral communications with Imperial Petroleum’s investors and outside auditors.
The Process
If found guilty, the six individuals charged by indictment face up to twenty years in federal prison on some counts, as well as significant fines. The three companies indicted today also face significant fines and other regulatory action. The defendants will have initial appearances before a federal magistrate judge today at 1:30pm.
The case is being prosecuted by Senior Litigation Counsel Steven D. DeBrota of the U.S. Attorney’s Office, along with Senior Counsel Thomas Ballantine of the Environmental Crimes Section in the Department of Justice’s Environment and Natural Resources Division, and Jake Schmidt, a Special Assistant U.S. Attorney at the U.S. Attorney’s Office and Senior Attorney for the Securities and Exchange Commission.
An indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Law Enforcement Partners
The collaborative investigation that led to today’s arrests was the result of work by the Environmental Protection Agency’s Criminal Investigation Division, the Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation, the Securities and Exchange Commission, as well as the U.S. Department of Agriculture and the Indiana Department of Environmental Management.
In response to the federal grand jury indictments, the following law enforcement partners issued statements:
Cynthia Giles, Assistant Administrator for Enforcement and Compliance Assurance, Environmental Protection Agency:
“The Renewable Fuel Standard Program was designed to achieve greenhouse gas emission reductions, promote energy independence and expand our nation’s renewable fuels sector. Today’s action supports these goals by protecting the integrity of the biofuel market. Those that cheat the system are breaking the law, and undermine our commitment to protect public health and the environment.”
Robert A. Jones, Special Agent in Charge, Federal Bureau of Investigation:
“We are proud to work with our federal partners to identify and investigate groups that manipulate and utilize federal government programs to line their pockets by fraud. In doing so, they deceive their customers, their shareholders, and the American public. The FBI will continue the fight against this dishonest and fraudulent behavior which harms the American people and the American economy.”
James C. Lee, Special Agent in Charge, IRS Criminal Investigation:
“The indictments returned today send a loud message that IRS Criminal Investigation operates year round to protect the integrity of our tax system and today is a victory for the American people. Together with the cooperative efforts of our law enforcement partners, we were able to identify and vigorously investigate the fraud involved in this scheme.”
Two North Carolina Residents Convicted for Conspiracy to Distribute OxycodoneRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Four Others Appear for Pleas and Sentencing
CLARKSBURG, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced the convictions of two North Carolina men for selling painkillers in West Virginia.
AARON MONTREAL RIGGIN, age 37, and REGINALD SCOTT, age 45, both of North Carolina, entered pleas of guilty to “Conspiracy to Distribute Oxycodone” in federal court in Clarksburg. RIGGIN and SCOTT admitted to selling oxycodone in Morgantown, WV, between September of 2011 to April 21, 2012. RIGGIN, who is free on bond, and SCOTT, who is in custody, each face up to 20 years in prison. This case was prosecuted by Assistant United States Attorney Zelda E. Wesley and investigated by the West Virginia State Police-Bureau of Criminal Investigations.
HALEY HOBLITZELL, age 24, of Morgantown, West Virginia, was sentenced to
21 months in prison and 3 years of supervised release for “Theft of Firearms” on August 9, 2012. HOBLITZELL was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Wesley and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police.MARCUS ALLEN, age 51, an inmate at the federal prison in Gilmer County, entered a plea of guilty to “Possession of a Prohibited Object” when staff at the institution confiscated a small plastic bottle containing marijuana which had been given to ALLEN by a visitor. ALLEN was sentenced to 4 months in prison to run consecutive to his current 175-month sentence. This case was prosecuted by Assistant United States Attorney Brandon S. Flower and was investigated by the Federal Bureau of Investigation and the Special Investigative Services Unit at FCI Gilmer.
RONALD CLEVENGER, age 70, of Clarksburg, was sentenced to 5 years of probation and ordered to make restitution in the amount of $115,150.06 for “Embezzlement, Theft and Conversion of Government Funds.” From October of 1999 to September of 2010, CLEVENGER converted benefits from agencies of the United States by taking Social Security and Coal Mine Workers’ Compensation benefits that were paid to CLEVENGER’s deceased mother. This case was prosecuted by Assistant United States Attorney Andrew R. Cogar and investigated by the Social Security Administration Office of Inspector General and the Department of Labor Office of Inspector General.
GREGGORY MAYFIELD, age 49, of Albright, West Virginia, was sentenced to 5 years of probation for “Possession of Stolen Explosives” from December of 2012 to February 20, 2013, in Preston County. This case was prosecuted by Assistant United States Attorney Shawn A. Morgan and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Two New Orleans Area Merchants Charged with Food Stamp FraudRead the Press Release
LONG T. TRINH, age 44, a resident of New Orleans, Louisiana, was charged today in a Bill of Information for receiving approximately $2,296,379 from the United State Department of Agriculture based upon food stamp benefits through his store Seafood Heaven, located in Gretna, Louisiana, that were not authorized, announced U. S. Attorney Dana Boente. In a separate Bill of Information, HAI BUI aka JIMMY BUI, age 57, a resident of Harvey, Louisiana, was charged with over $1 million dollars in food stamp fraud through his store Theresas Seafood #2, also located in Gretna, Louisiana. BUI’s wife, TERESA THUY BUI, age 62, was charged with misprision of a felony.
If convicted, the maximum penalty LONG T. TRINH and JIMMY BUI each face is 5 years imprisonment and/or a maximum fine of $250,000. TERESA BUI faces a maximum term of imprisonment of 3 years and/or a maximum fine of $250,000.
According to the Bills of Information, grocery retailers who participate in the Supplemental Nutrition Assistance Program (SNAP), a federal government program formerly known as the Food Stamp Program, may only accept and redeem food stamp benefits in exchange for the sale of eligible food items. Retailers may not exchange food stamp benefits for cash or any other ineligible items of value such as tobacco products or alcoholic beverages. Both store owners, LONG T. TRINH and JIMMY BUI are charged with knowingly presenting for payment and redemption SNAP benefits which had been purchased in exchange for cash money and ineligible items through their respective stores.
U. S. Attorney Boente reiterated that the Bills of Information are merely charges and that the guilt of the defendants must be proven beyond a reasonable doubt. This case was investigated by the United State Department of Agriculture, Office of Inspector General, and the Louisiana Department of Children and Family Services. The case is being prosecuted by Assistant United States Attorney Dorothy Manning Taylor.
(Download Bill of Information - Trinh )
(Download Bill of Information - Bui )
Trenton, N.J., Man Convicted at Trial on Federal Weapons ChargeRead the Press Release
TRENTON, N.J. – A federal jury in Trenton, N.J., today convicted a Trenton man for illegally carrying a loaded shotgun as a convicted felon, U.S. Attorney Paul J. Fishman announced.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko and Special Assistant U.S. Attorney Joseph Muoio of the U.S. Attorney’s Office Criminal Division in Trenton.
The jury returned a guilty verdict against Tyreek Harrington, 27, following a three-day trial before U.S. District Judge Freda L. Wolfson. Harrington was convicted of the first count in the indictment against him: being a convicted felon in possession of a loaded, sawed-off shotgun. Harrington was not convicted on the second count, involving possession of a revolver.
According to documents filed in this case, statements made in court, and the evidence at trial: In the early morning of April 20, 2012, officers from the New Jersey State Police and Trenton Police Departments were conducting surveillance in the area of Spring and Passaic Streets in Trenton when Harrington was observed in an alley handling a sawed-off shotgun.
The felon in possession count carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 6, 2014.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon; the Trenton Police Department, under the direction of Director Ralph Rivera; and the New Jersey State Police’s Crime Suppression North Unit, under the direction of Colonel Rick Fuentes, Superintendent, for the investigation leading to the conviction.
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Defense counsel: John S. Furlong Esq., West Trenton, N.J.Topeka Man Indicted on Gun, Drug ChargesRead the Press Release
TOPEKA, KAN. - A Topeka man with a record of felony convictions has been indicted on federal gun and drug charges, U.S. Attorney Barry Grissom said today.
Dustin C. Lynch, 30, Topeka, Kan., is charged with one count of unlawful possession of a firearm after felony convictions, one count of unlawful possession of a firearm in furtherance of drug trafficking and one count of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred Aug. 15, 2013, in Shawnee County, Kan.
The indictment alleges Lynch possessed a 9 mm pistol while he was prohibited under federal law from possessing a firearm because of prior felony convictions. The indictment cites prior felony convictions in 2008, 2009 and 2010 on charges including burglary, aggravated burglary and possession of methamphetamine.
If convicted, he faces a penalty of not less than 15 years in federal prison on the charge of unlawful possession of a firearm after a felony conviction; not less than five years on the charge of possession of a firearm in furtherance of drug trafficking; and a maximum penalty of 30 years and a fine up to $2 million on the drug charge. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Anthony Mattivi is prosecuting.
OTHER INDICTMENTS
Kenneth Leslie Lauter, Jr., 68, Kansas City, Kan., is charged with one count of receiving child pornography and one count of possessing child pornography. The crimes are alleged to have occurred Nov. 1, 2011, in Wyandotte County, Kan.
If convicted, he faces a penalty of not less than five years and not more than 20 years in federal prison and a fine up to $250,000 on the charge of receiving child pornography, and a maximum penalty of 10 years and a fine up to $250,000 on the possession charge. The U.S. Postal Inspection Service investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
Corey D. Cooley, 29, Junction City, Kan., is charged with failing to register as required by the federal Sex Offender Registration and Notification Act. The indictment alleges he was convicted in the state of Washington on a charge of first degree child molestation. The federal crime is alleged to have occurred from May 13 to Aug. 12, 2013, in Riley County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
Ian Dominique Hudson, 25, is charged with unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred Sept. 26, 2012.
The indictment alleges he was convicted in Shawnee County District Court in 2006 on a felony charge of aggravated robbery.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Theo Summers Buffalo Bulltail Found Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that on September 17, 2013, in Billings, after a federal district court trial before U.S. District Judge Donald W. Molloy, THEO SUMMERS BUFFALO BULLTAIL, a 30-year-old resident of Pryor, was found guilty of assault on a federal officer. Sentencing is set for December 18, 2013. He is currently detained.
At trial, the following evidence and testimony was presented to the jury.
On November 2, 2012, a Bureau of Indian Affairs Police officer was called to respond to a disturbance in Pryor. When he got to the house, BULLTAIL was identified by the occupants as the one causing problems. The officer tried to talk with BULLTAIL, but BULLTAIL immediately took a fighting stance. The officer tried to handcuff BULLTAIL, who then started fighting with the officer. During the ensuing scuffle, the officer was struck on the chin by BULLTAIL with the back of his head. The officer then lost his balance and struck his head, which resulted in a loss of consciousness for a brief period of time. The officer sought medical attention for pain in his head.
Assistant U.S. Attorney Lori Harper Suek prosecuted the case for the United States.
BULLTAIL faces possible penalties of 20 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the Bureau of Indian Affairs.
Texas Leader of Latin Kings Street Gang Sentenced in Indiana to 262 Months in Prison for Racketeering ConspiracyRead the Press Release
A Texas leader of the Latin Kings street gang was sentenced today in Hammond, Ind., to serve 262 months in prison for racketeering conspiracy, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David Capp of the Northern District of Indiana.
Dante Reyes, aka “DK,” 41, of Alton, Texas, was sentenced by U.S. District Judge Rudy Lozano in the Northern District of Indiana. In addition to his prison term, Reyes was sentenced to serve three years of supervised release. On March 14, 2013, Reyes pleaded guilty to one count of racketeering conspiracy.
According to the third superseding indictment filed in this case, the Latin Kings is a nationwide gang that originated in Chicago and has branched out throughout the United States, including the state of Texas. The Latin Kings is a well-organized street gang that has well-defined leadership and is composed of regions that include multiple chapters. The third superseding indictment charges that the Latin Kings was responsible for more than 20 murders in southeast Chicago, northwest Indiana and Big Spring, Texas.During a co-defendant’s trial, the government presented evidence of several murders committed by members of the Latin Kings. In addition, cooperating defendants testified that the Latin Kings was responsible for distributing more than 150 kilograms of cocaine and 1,000 kilograms of marijuana over the course of the racketeering conspiracy.
During his guilty plea proceeding, Reyes acknowledged that he became a member of the Latin Kings at an early age and ultimately rose to the level of South Texas Regional Inca. He admitted that he attended at least two meetings in Texas with other members of the Latin Kings leadership in order to solidify the relationship between the Latin Kings in Texas and Chicago. Reyes further admitted that on at least one occasion, he traveled to the Chicago area with other Latin Kings members to meet with local Latin Kings leadership.
According to court documents, Reyes distributed cocaine and marijuana to Latin Kings members in Texas. He also distributed cocaine in Michigan through the use of couriers. These couriers traveled from Texas by bus or other vehicles and passed through the Northern District of Indiana while en route.
Twenty-three Latin Kings members and associates have been indicted in this case. Including Reyes, 21 defendants have pleaded guilty, one was convicted by jury and one remains a fugitive.This case was investigated by the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; ICE Homeland Security Investigations; the National Gang Intelligence Center; the Chicago Police Department; the Houston Police Department; the Griffith, Ind., Police Department; the Highland, Ind., Police Department; the Hammond, Ind., Police Department; and the East Chicago Police Department.
The case is being prosecuted by Trial Attorney Joseph A. Cooley of the Criminal Division’s Organized Crime and Gang Section, and Assistant U.S. Attorney David J. Nozick of the Northern District of Indiana. Assistant U.S. Attorney Andrew Porter of the Northern District of Illinois and Assistant U.S. Attorney Jeffrey Haag of the Northern District of Texas, Lubbock Division, provided significant assistance.
The third superseding indictment is not evidence of guilt. The defendant who has not been convicted is innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Texas Leader of Latin Kings Street Gang Sentenced in Indiana to 262 Months in Prison for Racketeering ConspiracyRead the Press Release
WASHINGTON – A Texas leader of the Latin Kings street gang was sentenced today in Hammond, Ind., to serve 262 months in prison for racketeering conspiracy, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney David Capp of the Northern District of Indiana.
Dante Reyes, aka “DK,” 41, of Alton,Texas, was sentenced by U.S. District Judge Rudy Lozano in the Northern District of Indiana.In addition to his prison term, Reyes was sentenced to serve three years of supervised release.On March 14, 2013, Reyes pleaded guilty to one count of racketeering conspiracy.
According to the third superseding indictment filed in this case, the Latin Kings is a nationwide gang that originated in Chicago and has branched out throughout the United States, including the state of Texas. The Latin Kings is a well-organized street gang that has well-defined leadership and is composed of regions that include multiple chapters. The third superseding indictment charges that the Latin Kings was responsible for more than 20 murders in southeast Chicago, northwest Indiana and Big Spring, Texas.
During a co-defendant’s trial, the government presented evidence of several murders committed by members of the Latin Kings. In addition, cooperating defendants testified that the Latin Kings were responsible for distributing more than 150 kilograms of cocaine and 1,000 kilograms of marijuana over the course of the racketeering conspiracy.
During his guilty plea proceeding, Reyes acknowledged that he became a member of the Latin Kings at an early age and ultimately rose to the level of South Texas Regional Inca. He admitted that he attended at least two meetings in Texas with other members of the Latin Kings leadership in order to solidify the relationship between the Latin Kings in Texas and Chicago. Reyes further admitted that on at least one occasion, he traveled to the Chicago area with other Latin Kings members to meet with local Latin Kings leadership.
According to court documents, Reyes distributed cocaine and marijuana to Latin Kings members in Texas.He also distributed cocaine in Michigan through the use of couriers.These couriers traveled from Texas by bus or other vehicles and passed through the Northern District of Indiana while en route.
Twenty-three Latin Kings members and associates have been indicted in this case.Including Reyes, 21 defendants have pleaded guilty, one was convicted by jury and one remains a fugitive.
This case was investigated by the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; ICE Homeland Security Investigations; the National Gang Intelligence Center; the Chicago Police Department; the Houston Police Department; the Griffith, Ind., Police Department; the Highland, Ind., Police Department; the Hammond, Ind., Police Department; and the East Chicago Police Department.
The case is being prosecuted by Trial Attorney Joseph A. Cooley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney David J. Nozick of the Northern District of Indiana.Assistant U.S. Attorney Andrew Porter of the Northern District of Illinois and Assistant U.S. Attorney Jeffrey Haag of the Northern District of Texas, Lubbock Division, provided significant assistance.
The third superseding indictment is not evidence of guilt.The defendant who has not been convicted is innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Terry Lynn Braine Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on September 18, 2013, before U.S. District Judge Donald W. Molloy, TERRY LYNN BRAINE, a 47-year-old resident of Ashland, was sentenced to a term of:
- Prison: 37months
- Special Assessment: $100
- Supervised Release: 3 years
BRAINE, was sentenced in connection with his guilty plea to domestic assault by a habitual offender.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On November 29, 2012, BRAINE punched his elderly father in the eye causing severe swelling, redness, and a laceration. His elderly mother was present as well and suffered emotional trauma from witnessing the attack. BRAINE has four prior tribal court convictions for domestic assault - all of them involve assaults on his elderly parents.
The assault occurred in Lame Deer, which is within the exterior boundaries of the Northern Cheyenne Indian Reservation.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that BRAINE, will likely serve all of the time imposed by the court. In the federal system, BRAINE, does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Bureau of Indian Affairs.
Tennessee Federal Court Bars the Owners of Mo’ Money Taxes from Owning, Operating, Licensing or Franchsing a Tax Return Preparation Business and Preparing Tax Returns for OthersRead the Press Release
A federal court in Memphis, Tenn., permanently barred the owners of Mo’ Money Taxes, Markey Granberry and Derrick Robinson, as well as a former Mo’ Money manager, Eumora Reese, from preparing tax returns for others and owning or operating a tax return preparation business, the Justice Department announced today. The civil injunction order, to which Granberry, Robinson and Reese agreed without admitting the allegations against them, was signed by Judge S. Thomas Anderson of the U.S. District Court for the Western District of Tennessee.
The United States brought the civil injunction suit in April, seeking to shut down Mo’ Money Taxes, a Memphis-based tax-preparation chain that at one time operated as many as 300 offices in 18 states. The government complaint, which can be viewed at www.justice.gov/tax/2013/txdv13412.htm , alleged that Mo’ Money Taxes, its owners Granberry and Robinson and store manager Reese created and maintained a business environment that encouraged the preparation of fraudulent federal income tax returns. According to the complaint, Mo’ Money Taxes’ managers, licensees and employees prepared fraudulent returns that caused their customers to incorrectly report their federal tax liabilities and underpay their taxes. The complaint further alleged that defendants charged customers bogus and unconscionably high fees.
According to the complaint, Granberry and Robinson most recently used the business name Marquis Taxes and, along with Reese, also used the name Southern King Taxes. The complaint also alleges that Granberry and Robinson received fees for each tax return prepared by these businesses through Caymau Service Bureau LLC. The civil injunction order not only bars Granberry, Robinson and Reese from owning and operating these businesses, but also from managing, working in, controlling, licensing or franchising a tax return preparation business.
The complaint alleges that Granberry, Robinson and Reese encouraged Mo’ Money Taxes preparers to falsely claim the earned-income credit; claim improper filing status; claim bogus education credits, improperly prepare returns using paystubs rather than employer-issued W-2 forms; fabricate bogus W-2 forms; file tax returns without customers’ consent; sell false and deceptive loan products; and charge deceptive and unconscionable fees.
Return preparer fraud, claiming false income or expenses to secure larger refundable credits such as the earned-income credit, and identity theft are among the IRS’s “Dirty Dozen” Tax Scams for 2013, which can be viewed at www.irs.gov/uac/Newsroom/IRS-Releases-the-Dirty-Dozen-Tax-Scams-for-2013 .
“American taxpayers need to know they can rely on their tax preparers to prepare honest, accurate returns,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. “The Internal Revenue Service and Justice Department are committed to strong enforcement action against tax preparers who fail to live up to that standard.”
In the past decade the Justice Department's Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website at www.justice.gov/tax/taxpress2013.htm. For more information about choosing a tax return preparer, see the IRS website at www.irs.gov/uac/Tips-for-Choosing-a-Tax-Return-Preparer and the IRS YouTube Channel at www.youtube.com/watch?v=ujqdzMn7PX0.
Related Materials:
United States v. Markey Granberry, et al.
Order of Permanent Injunction Against Markey Granberry, Derrick Robinson and Eumora Reese
Swansea Man Indicted for Stealing Funds from Railroad Retirement BoardRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Mark A. Lewis, 29, of Swansea, was indicted by a federal grand jury sitting in East St. Louis on charges that he stole unemployment benefits from the United States Railroad Retirement Board.
The indictment alleges that from January 2013 through May 2013, Fisher fraudulently obtained monies belonging to the Railroad Retirement Board, an agency of the United States, by concealing his employment status in order to receive unemployment benefits. The charge carries a maximum penalty of 10 years in prison, a $250,000 fine, and up to 3 years of supervised release.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
The case was investigated by agents of the Railroad Retirement Board, Office of Investigations. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
If you suspect or know of an individual or company that is committing fraud against any U.S. Railroad Retirement Board program, you may report this to the U.S. Railroad Retirement Board’s Office of Inspector General by calling 800.772.4258 or by e-mailing a complaint or information to: [email protected]