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Thursday 1 August 2013
Attorney General Eric Holder Welcomes the Confirmation of Stuart F. Delery as Assistant Attorney General for the Civil DivisionRead the Press Release
Attorney General Eric Holder today welcomed the confirmation last night by the U.S. Senate of Stuart F. Delery as the Department of Justice’s Assistant Attorney General for the Civil Division.
“I am pleased to congratulate Stuart Delery on his confirmation as Assistant Attorney General for the Civil Division, an office he has held in an acting capacity for more than a year,” said Attorney General Eric H. Holder, Jr. “During that time, and throughout his service at the Department – including his tenure as Chief of Staff to the Deputy Attorney General and Senior Counselor in my office – Stuart has exemplified the highest standards of integrity and professionalism. He has provided strong and steady leadership in our efforts to advance equality, opportunity, and justice. And I look forward to continuing to work with him as we continue the Division’s critical work on behalf of the American people.”
The Civil Division is the largest litigating division in the Department of Justice and represents the United States in legal challenges to Congressional statutes, Administration policies, and federal agency actions. They concern federal benefit programs; commercial issues such as contract disputes, banking, insurance, patents, and debt collection; international trade matters; enforcement of immigration laws; and civil and criminal violations of consumer protection laws. The Civil Division recovers billions of dollars for taxpayers through its affirmative litigation, such as its enforcement of federal consumer protection laws and its record-setting efforts under the False Claims Act, including cases targeting health care fraud, financial fraud, and fraud against the military. Finally, the Division protects the health and safety of Americans by defending cases related to national security and by enforcing protections for the safety of food and medicines.
Delery joined the Justice Department in January 2009 as Chief of Staff and Counselor to the Deputy Attorney General and later served as Associate Deputy Attorney General. From 2010 until 2012, Delery served as Senior Counselor to the Attorney General and focused on civil and appellate matters, including national security litigation and legal policy issues. He has since served as Acting Assistant Attorney General for the Civil Division.
Prior to his federal government experience, Delery was a partner in the Washington, D.C. law firm of WilmerHale, where he was a member of the Litigation Department and the Appellate and Supreme Court Litigation Practice Group and a vice chair of the firm’s Securities Department.
Delery graduated from Yale Law School and the University of Virginia. He clerked for U.S. Supreme Court Justices Sandra Day O’Connor and Byron R. White and for Chief Judge Gerald B. Tjoflat of the U.S. Court of Appeals for the 11th Circuit.
Albuquerque Man Pleads Guilty to Federal Identity Theft ChargesRead the Press Release
ALBUQUERQUE – Reese Chancellor, 31, of Albuquerque, pleaded guilty this morning to conspiracy and identity theft charges under a plea agreement with the U.S. Attorney’s Office. Under the terms of the plea agreement, Chancellor will be subject to a ten month prison sentence followed by a term of supervised release to be determined by the court. Chancellor also will be required to pay $124,708.71 in restitution to the businesses that were victims of his criminal conduct.
Chancellor and his co-defendants, Jeremy Bacuccini, 35, and Mitzi Marsh, 55, both of Albuquerque, were indicted in Nov. 2012, on identity theft, aggravated identity theft and conspiracy charges. According to the 11-count indictment, the three defendants unlawfully used the identities of others to commit crimes in 2007 and 2008. According to the indictment, the three defendants used counterfeit access devices, like credit cards, opened in the names of others and without their permission to fraudulently obtain items valued at more than $1,000.00. Court filings indicate that the co-conspirators were responsible for approximately $124,708.71 in losses sustained by the retailers.
This morning, Chancellor entered guilty pleas to Counts 3 and 7 of the indictment, charging him with conspiracy to commit identity theft, and Count 8, charging him with identity theft. In his plea agreement, Chancellor admitted that, while working at an Albuquerque apartment complex in Oct. 2007, he obtained unauthorized access to tenant files and used the names and identifiers of the tenants to make fake IDs and counterfeit checks. Chancellor further admitted that Bacuccini and Marsh used the fake IDs and counterfeit checks to make fraudulent purchases at numerous retailers, including Home Depot, Zales, Lowe’s, Costco, Sears, Sam’s Club and Sears, valued in aggregate at approximately $124,708.71.
Co-defendant, Bacuccini pleaded guilty on June 17, 2013, to Count 6 of the indictment, charging him with aggravated identity theft. In his plea agreement, Bacuccini admitted that, in Dec. 2007 and Jan. 2008, he used the names and personal identifiers of four individuals, which he obtained from Chancellor, to open accounts at businesses in Albuquerque and Santa Fe and make purchases. He also admitted using fake checks in the names of two of the individuals to make purchases at Albuquerque businesses. Bacuccini also admitted making fake checks using bank account numbers provided by Marsh, who worked at a physician’s office. Bacuccini acknowledged that he and Chancellor are jointly responsible for $30,431.70 in losses sustained by retailers as a result of their criminal conduct. Under the terms of his plea agreement, Bacuccini will be sentenced to two years in federal prison and will be required to make full restitution to the victims of his criminal conduct. Bacuccini is in custody pending his sentencing hearing, which has yet to be scheduled.
Marsh has yet to be arrested and is considered a fugitive. The charges against Marsh are merely accusations and she is presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
This case was investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Cynthia L. Weisman."Chardhi Kala: Remembering and Honoring the Victims of Violence at the Sikh Gurdwara in Oak Creek"Read the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin announced today that a special observance will be held on Friday, August 2, 2013 from 1:30 p.m. to 3:00 pm in remembrance and honor of the hate crimes victims of violence at the Sikh Gurdwara in Oak Creek. This special community gathering will be held in the Ceremonial Courtroom (Room 390) of the Historic Federal Courthouse, located at 517 East Wisconsin Avenue in Milwaukee.
In addition to remarks by United States Attorney Santelle, Senator Ron Johnson and Senator Tammy Baldwin will also provide remarks. The leadership representatives of the Sikh Gurdwaras in Oak Creek and Brookfield will offer reflections on the events of early August of 2012, and representatives of the families of those martyred and injured in the violence will be specially recognized and participate in the program. The Honorable Stephen Scaffidi, Mayor of the City of Oak Creek, and Ms. Patricia Ferrick, Acting Special Agent in Charge of the Federal Bureau of Investigation, will also offer remarks about the significance of the violence and the perspectives of the community one year later.
The memorial observance will include the performance of special commemorative music performed by children and adult members of the Oak Creek Gurdwara. Mr. Thomas Heinen, the Executive Director of the Interfaith Conference of Greater Milwaukee, will also be offering a reflection on behalf of the diverse faith community in Wisconsin and throughout the nation.
The program will be followed by an informal community gathering in Room 190 of the Historic Federal Courthouse, during which participants and attendees will have an opportunity to engage in informal discussion and share thoughts. In that setting and in the entryway atrium of the building, informational items and photographs about the contributions of Sikhs to the history of the world and to the life and livelihood of the United States will be on display for viewing.
Because of the solemn, contemplative nature of the observance, United States Attorney Santelle requests that the media be respectful of the wishes and interests of the family members of the victims as well as other Gurdwara congregation members and not affirmatively solicit them for on-camera or other interviews in this setting. If requested, Public Information Officer Dean Puschnig will attempt to arrange interviews with victim family members who indicate that they would be willing to be interviewed.
United States Attorney Santelle noted that this observance is among several gatherings and events organized and sponsored in partnership with the leadership of the Sikh Community and of the City of Oak Creek beginning on Friday, August 2, and continuing through Monday, August 5. Information about other, related programs may be obtained from the Sikh Temple of Wisconsin at www.sikhtempleofwisconsin.com.
Mr. Puschnig will meet all representatives of the media at the employee entrance to the building on Jackson Street between 12:30 p.m. and 1:00 p.m. and escort them through the court house to the Ceremonial Courtroom. Arrangements will be made for a unified, common camera for recording/broadcast of the ceremony. Members of the media should call Mr. Puschnig at (414) 297-1774 to confirm their attendance.
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Wednesday 31 July 2013
West Plains Man Pleads Guilty to Distributing K2Read the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a West Plains, Mo., man pleaded guilty in federal court today to distributing synthetic marijuana, commonly referred to as K2, while employed at The Man Cave in Springfield, Mo.
Kent C. Work, 54, of West Plains, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with two counts of distributing a controlled substance analogue.
Work admitted that, while working at The Man Cave, he sold synthetic marijuana to an undercover Springfield police officer on several occasions.
By pleading guilty to the first count, Work admitted that he sold synthetic marijuana to an undercover officer on April 2, 2013. When the officer asked for “Scarface,” Work walked to the cash register, leaned under the counter, and looked through a box. Work stated they only had “Baby Face” in a green or strawberry color. The undercover officer asked for the strawberry. Work produced a bag of “Baby Face,” which the undercover officer purchased for $35.
The packaging included the words, “100% DEA Approved, Not for Human Consumption.” Work did not ring the transaction through the cash register and did not charge sales tax.
By pleading guilty to the second count, Work admitted that he sold synthetic marijuana to an undercover Springfield police officer on April 10, 2013. The undercover officer asked Work for “Scarface.” Work walked to the cash register and pulled out several packages of synthetic marijuana and said that he had “Baby Face,” “608 Triple Cherry,” “Scarface” and “Reload Plain.” The undercover officer asked to purchase the “Scarface” and the “Reload Plain” and handed Work $50.
The “Scarface” packaging included the words, “100% DEA Approved.” The “Reload Plain” packaging included the words, “Not Meant for Human Consumption, For Display Purposes Only” and “Does not contain any Federally Forbidden Ingredients.” No receipt was issued and the purchase was not taxed.
In addition to the criminal conduct for which he was charged, Work also admitted that he again sold synthetic marijuana to an undercover police officer on April 24 and May 8, 2013. Work was also observed selling these substances to other customers of The Man Cave. Those additional actions are considered relevant conduct and may be considered by the court when determining an appropriate sentence. Work sold a total of 17 grams of synthetic marijuana.
Under federal statutes, Work is subject to a sentence of up to 40 years in federal prison without parole, plus a fine up to $2 million. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Springfield, Mo., Police Department, the Missouri State Highway Patrol, IRS-Criminal Investigation and the U.S. Postal Inspection Service.Uhrichsville Woman Charged with Making A Bomb ThreatRead the Press Release
A grand jury returned a one-count indictment charging an Uhrichsville woman with making a bomb threat, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Jennifer Jean Ebert, 25, is charged with phoning in the threat to the MedCentral Wellness Complex, in Mansfield, which caused its evacuation on March 22, 2013, according to the indictment.
The case is being prosecuted by Assistant U.S. Attorneys Justin Seabury Gould and Edward F. Feran, following investigation by agents of the Federal Bureau of Investigation, and members of the Ontario (Ohio) Division of Police.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge 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.
Two-Time Felon Sentenced to Federal Prison for Drug Trafficking and Firearms ChargesRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Warren Love, 36, of Rochester, N.Y., who was convicted by a jury of possession of cocaine with the intent to distribute, maintaining a drug involved premises, possession of firearms in furtherance of drug trafficking crimes, and possession of firearms and ammunition while being a convicted felon, was sentenced to 13 years in prison and six years supervised release by U.S. District Court Judge David G. Larimer.
Assistant U.S. Attorneys Craig Gestring and Charles E. Moynihan, who handled the case, stated that Love was arrested following the execution of two search warrants by members of the Greater Rochester Area Narcotics Enforcement Team at 399 Lake Avenue on April 6, 2010. Upon entering the location, officers encountered and arrested the defendant at the threshold of the rear first floor apartment.
In searching the rear first floor apartment, law enforcement officers located and seized over 19 grams of crack cocaine which was in the process of being packaged for street level sale. Officers also located paraphernalia associated with drug trafficking, including digital scales and glassine ziplock bags. In addition to these items, law enforcement officers located and seized two bullet proof vests and two handguns, one of which was loaded with ten rounds of ammunition.
In searching the rear second floor apartment, officers also located a sophisticated surveillance system which showed the area outside of 399 Lake Avenue through the use of strategically mounted surveillance cameras. Officers located, in the same apartment, paraphernalia related to drug trafficking, as well as a loaded 40 caliber rifle which was underneath a sofa. Finally, officers found the defendant's four-year old son playing in the living room in which they found the loaded rifle.
The sentencing is the result of an investigation on the part of the Greater Rochester Area Narcotics Enforcement Team composed of law enforcement personnel from the Bureau of Alcohol, Tobacco, Firearms and Explosives under the direction of Resident Agent in Charge Scott Heagney, the Rochester Police Department, under the direction of Chief James M. Sheppard and Irondequoit Police Department, under the direction of Richard Boyan.
Two Individuals Convicted on Drug ChargesRead 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
ELKINS, WEST VIRGINIA — United States Attorney William J. Ihlenfeld, II
announced that the following individuals recently appeared in Federal Court in Elkins.DONALD MARK TILLOTSON, age 39, of Burlington, West Virginia, entered a plea of guilty to “Possession of Pseudoephedrine to be Used in the Manufacture of Methamphetamine” on November 12, 2012, in Keyser, West Virginia. TILLOTSON, who is in custody pending sentencing, faces up to 20 years imprisonment and a $250,000 fine. This case was investigated by the Potomac Highlands Drug and Violent Crimes Task Force consisting of officers from the Federal Bureau of Investigation, and the West Virginia State Police - Bureau of Criminal Investigations.
TONYA RENEE HAYMOND, age 28, of Romney, West Virginia, entered a plea of guilty to “Distribution of Heroin,” on June 5, 2012, in Moorefield, West Virginia. HAYMOND, who is free on bond pending sentencing, faces up to 20 years imprisonment and a $1,000,000 fine. This case was investigated by the Hardy County Sheriff’s Department and the Moorefield Police Department.
The TILLOTSON and HAYMOND cases were prosecuted by Assistant United States
Attorney Stephen D. Warner.Two Individuals Arrested for Child PornographyRead the Press Release
SAN JUAN, Puerto Rico —U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) special agents, and officers assigned to the Puerto Rico Crimes Against Children Task Force (PRCACTF) arrested Victor Vega-Rodríguez, 21, of the municipality of Arroyo, and Kermet Cuebas-Crespo, 21, of Mayagüez, on two different criminal complaints for child pornography, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
On July 16, HSI received information from PRPD regarding a complaint filed against Vega-Rodríguez alleging that he used his Facebook account to entice, coerce and induce two female minors identified as Jane Doe 1 and Jane Doe 2 to engage in sexually explicit conduct and that he allegedly transported them to his home to engage in sexual criminal acts. The information provided by PRPD led to an HSI investigation that resulted in the arrest of Vega-Rodríguez.
According to the charges, a relative of Jane Doe 1 filed a complaint with the PRPD. The complaint was regarding the kidnapping of Jane Doe 1. PRPD officers rescued the minor at Vega-Rodríguez’s residence located in Arroyo, Puerto Rico. The second victim, another 14 year old female minor, was picked up by the defendant at her school in February of this year. According to the charges they engaged in multiple sexual acts.
In a separate case yesterday, HSI agents arrested Kermet Cuebas-Crespo, for possession of child pornography. The HSI investigation that led to Cuebas-Crespo’s arrest stemmed from a referral from the National Center for the Missing and Exploited Children.
Vega-Rodríguez faces a sentence of 15 years to life in prison while Cuebas-Crespo faces a sentence of five years in prison. Assistant U.S. Attorney Luke Cass is prosecuting both cases.
“Criminals with this kind of depravity in mind should know that law enforcement agencies in Puerto Rico are always vigilant. For every tactic taken to evade the law, we will adapt our strategies to find them and prosecute them to the fullest extent of the law,” said US Attorney Rosa Emilia Rodríguez-Vélez. “The U.S. Department of Justice, through its Project Safe Childhood, will continue prosecuting sexual predators of minors.”
“The sexual exploitation of children is perhaps one of the most heinous crimes there are and HSI will continue to fight it, said Ángel M. Meléndez, special agent in charge of HSI San Juan. “With the alarming increase of these cases on the island HSI is committed to continue working with our PRCACTF partners to bring those who exploit our children to justice.”
In response to the need for an island-wide approach to fighting the escalation of predatory crimes against children, HSI San Juan partnered with members of local, state and federal law enforcement, as well as local and state government officials and community leaders, to form PRCACTF in June 2011.
Through PRCACTF, local, state and federal law enforcement agencies work together with local and state government agencies to effectively pool their resources to jointly investigate all crimes against children in Puerto Rico. Through the task force, law enforcement officers are encouraged to share evidence, ideas, and investigative and forensic tools to ensure the most successful prosecutions possible. As such, PRCACTF allows law enforcement to speak with one unified voice in defense of the children of Puerto Rico.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-843-5678.
Two Essex County, N.J., Men Sentenced to Long Prison Terms for Armed Robbery of Jewelry StoreRead the Press Release
NEWARK, N.J. – Two Essex County, N.J., men were sentenced to prison today for the armed robbery of the Golden Palace jewelry store in Orange, N.J., U.S. Attorney Paul J. Fishman announced.
U.S. District Judge William J. Martini sentenced Antonio Moore, 45, of Newark, to 188 months in prison. Moore previously pleaded guilty to an indictment charging him with one count of Hobbs Act robbery and one count of using a firearm in furtherance of that robbery. Judge Martini sentenced Charles Madison, 42, also of Newark, to 150 months in prison. Madison previously pleaded guilty to an information charging him with aiding and abetting the Hobbs Act robbery and for being a felon in possession of a firearm. A third defendant, David Williams, pleaded guilty in January 2013 and awaits sentencing.According to documents filed in this case and statements made in Newark federal court:
On Aug. 6, 2012, Moore and Williams robbed the store at gunpoint, while Madison served as the getaway driver. During the robbery, Moore punched an employee of the Golden Palace in the head, restrained that employee and a co-worker with duct tape and telephone cord and took approximately $120,000 in jewelry from the store’s display cases. Law enforcement pulled over Madison’s pickup truck approximately an hour after the robbery and found dozens of pieces of gold jewelry scattered across the back seat of the truck.
In addition to the prison terms, Judge Martini sentenced each defendant to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation. Fishman also thanked the Orange Police Department and the New Jersey State Police for their investigation and assistance.
The government is represented by Assistant U.S. Attorney Andrew J. Bruck and Chief David E. Malagold of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
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Defense counsel:
Moore: Mark A. Berman Esq., River Edge, N.J.
Madison: Michael V. Calabro Esq., NewarkTwo District Men Found Guilty of Armed Kidnapping and Other Charges in Northwest Washington Attack-Defendants Bound Victim and His Friend, Held Them for Hours-Read the Press Release
WASHINGTON - Aaron Thorpe, 33, and Melvin Knight, 36, both of Washington, D.C., were found guilty by a jury today of armed kidnapping and other charges stemming from an attack in which they held a man and woman for hours while searching a house in Northwest Washington for illegal drugs and cash, U.S. Attorney Ronald C. Machen Jr. announced.
The verdicts followed a trial in the U.S. District Court for the District of Columbia. The defendants were found guilty of armed kidnapping, armed burglary, a weapons offense, and related charges. The Honorable Richard J. Leon scheduled sentencing for Oct. 31, 2013. Thorpe and Knight, who are being held without bond pending sentencing, face up to 35 years in prison.
According to the government’s evidence, early Jan. 28, 2013, Thorpe and Knight lay in wait outside the home of the victim, who lived in the 6400 block of Kansas Avenue NW. They were armed with handguns and wearing ski masks and dark clothing. When the victim and his female friend approached the home, Thorpe and Knight emerged from behind a car, forced the victim and his friend against the wall of the home at gunpoint, and handcuffed them.
In the course of trying to handcuff the victim, who was resisting restraint, Knight discharged his firearm. A neighbor, hearing the gunshot, looked out a window and saw three men – the victim, Thorpe, and Knight. The neighbor described Thorpe and Knight as two men in masks and in all black, one with a shirt that had the word “POLICE” written across it. The neighbor saw the men force the victim into his home and clearly saw one of them holding a gun.
After the neighbor’s call to police, the Metropolitan Police Department (MPD) arrived on the scene and knocked on the door; no one responded. More units responded over the next few hours, including the department’s Emergency Response Team.
Meanwhile, once inside, Thorpe and Knight had forced the victim and his friend to the floor. The two defendants then bound their legs and mouths with duct tape, and began searching through the home for illegal narcotics and cash. They demanded that the victim tell them where to look, and threatened him and his friend, stating, “We’re not leaving any witnesses.”
While lying face down on the floor, fearing for his life and that of his friend, the victim saw one of the defendants’ guns on the floor. He was able to break his hands free and attempted to reach for the gun. At that point, one of the assailants jumped on him, beat him severely in the head and face with another gun, and threatened to kill the victim’s friend if he did not relent. The male victim complied and the two defendants bound his hands with flexi-cuffs again.
The defendants later hid and/or attempted to destroy evidence of their crimes, unbound the victims, and threatened them to tell a false story to police about what had happened inside the home. Finally, at about 3:40 a.m., Thorpe and both victims walked out of the home; police officers then went in and located Knight upstairs. Both defendants were placed under arrest.
In announcing the verdicts, U.S. Attorney Machen commended the actions of the Metropolitan Police Department officers, detectives, and others who worked on the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Candace Battle and Debra McPherson, Legal Assistant Tammy Scott, Intelligence Specialists Francis Morgan and Sharon Johnson, and intern Christopher Kaltsas. Finally, he commended the efforts of Assistant U.S. Attorneys Emory V. Cole and Brittain Shaw, who investigated and prosecuted the case.
13-270Two Birmingham Women Indicted for Possessing Stolen MailRead the Press Release
BIRMINGHAM -- A federal grand jury late Tuesday indicted two Birmingham women in connection with mail stolen from residential mailboxes in Trussville, announced U.S. Attorney Joyce White Vance and U.S. Postal Inspector Frank Dyer.
An indictment filed in U.S. District Court charges SHAYLA MONIQUE DAUGHTRY, 22, and TOYA LAPARRIS SHEPARD, also 22, with possessing stolen mail and clothing removed from a package that had been stolen from the mail on July 27.
The maximum penalty for possessing stolen mail is five years in prison and a $250,000 fine.
The U.S. Postal Inspection Service investigated the case, with assistance from Trussville Police. Assistant U.S. Attorney Melissa K. Atwood is prosecuting the case.
The public is reminded that an indictment contains only charges. It will be the government's responsibility to prove the charges beyond a reasonable doubt at trial.
Tres hombres fueron sentenciados en Puerto Rico en un enjuiciamiento de la Operación 'Guard Shack'Read the Press Release
Dos ex agentes de la Policía de Puerto Rico y otra persona fueron sentenciados a prisión ayer por sus papeles en brindar seguridad para transacciones de narcotráfico.
El Secretario de Justicia Auxiliar Interino Mythili Raman de la División Penal del Departamento de Justicia, la Fiscal Federal Rosa E. Rodriguez-Velez del Distrito de Puerto Rico y el Agente Especial a Cargo Carlos Cases de la Oficina Local de San Juan del Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)] realizaron un anuncio después de emitida la sentencia por la Juez Federal de Distrito Consuelo Cerezo en el Distrito de Puerto Rico.
Los ex agentes de la Policía de Puerto Rico Daviel Salinas-Acevedo, 29, de Bayamon, Puerto Rico, y Miguel Santiago-Cordero, 30, de Lares, Puerto Rico, fueron ambos sentenciados el 30 de julio de 2013 a 181 meses de prisión. Asimismo, Wendell Rivera-Ruperto, 38, de Las Marías, Puerto Rico, también fue sentenciado ayer a 420 meses en prisión.
El 10 de enero de 2013, Salinas-Acevedo y Santiago-Cordero fueron ambos condenados en juicio por un cargo de conspirar para poseer con la intención de distribuir más de cinco kilogramos de cocaína y un cargo de posesión de arma de fuego para promover una transacción de drogas. Rivera-Ruperto fue condenado por un cargo de conspiración para poseer con la intención de distribuir más de cinco kilogramos de cocaína, intento de posesión con la intención de distribuir más de cinco kilogramos de cocaína y posesión de arma de fuego para promover una transacción de drogas. Rivera-Ruperto había sido condenado anteriormente por 15 otros cargos derivados de su participación en otras transacciones de narcotráfico relacionadas.
El caso contra los tres demandados surgió de la operación encubierta del FBI conocida como "Operación Guard Shack". Hasta la fecha, 131 demandados se han declarado culpables o han sido condenados en juicio, y 123 demandados han sido sentenciados como resultado de la operación.
De acuerdo con pruebas presentadas en el tribunal, Salinas-Acevedo, Santiago-Cordero y Rivera-Ruperto brindaron, cada uno, seguridad para lo que creían ser transacciones ilegales de cocaína que ocurrieron el 24 de marzo, el 9 de abril y el 8 de julio, respectivamente. De hecho, cada supuesta transacción de narcotráfico fue una de docenas de transacciones simuladas llevadas a cabo como parte de la operación encubierta del FBI. Los tres hombres prestaron servicios de seguridad armada para las transacciones de cocaína de múltiples kilogramos al registrar al comprador, mantenerse de guardia a medida que se contaron los kilos e inspeccionar y escoltar al comprador al llegar y salir del lugar de la transacción.
A cambio por la seguridad que brindaron, Salinas-Acevedo, Santiago-Cordero y Rivera-Ruperto recibieron un pago en efectivo de 2,000 dólares cada uno. Ninguno de los demandados devolvió el dinero y ninguno de ellos jamás denunció las transacciones.
El caso fue investigado por el FBI. El Departamento de Justicia de Puerto Rico también brindó asistencia en este caso.
El caso fue enjuiciado por los Abogados Litigantes Anthony J. Phillips y Edward J. Loya Jr. de la Sección de Integridad Pública de la División de lo Penal. La Fiscalía Federal para el Distrito de Puerto Rico participó en la investigación y el enjuiciamiento de este caso.
Three Northeast Alabama Residents Indicted for Distributing MethamphetamineRead the Press Release
BIRMINGHAM -- A federal grand jury late Tuesday indicted three northeast Alabama residents for conspiracy to distribute methamphetamine in Marshall County, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
An indictment filed in U.S. District Court charges ANGELA NICOLE HOLLAND, 39, CHESTER LYNN DAVIDSON, 60, both of Albertville, and ROBERT BRADLEY FUSSELL, 38, of Boaz, with conspiring to distribute and to possess with intent to distribute at least 50 grams of the controlled substance, methamphetamine, between November 2012 and February.
The indictment also charges Davidson with two individual counts of distributing methamphetamine, on Jan. 29 and Jan. 30. It charges Fussell with one count of possessing methamphetamine with intent to distribute the drug on Jan. 30, and charges Holland with one count of distributing methamphetamine on Feb. 15 and with possessing with intent to distribute five grams or more of the drug on that date.
The conspiracy charge carries a penalty of 10 years to life in prison and a fine of up to $10 million. The charges of possessing with intent to distribute or distributing methamphetamine carry a maximum penalty of 20 years in prison and a $1 million fine. Possessing with intent to distribute at least five grams of methamphetamine carries a possible prison sentence of five to 40 years and a maximum $5 million fine.
The FBI investigated the case, which Assistant U.S. Attorney Laura D. Hodge is prosecuting.
The public is reminded that an indictment contains only charges. It will be the government's responsibility to prove the charges beyond a reasonable doubt at trial.
Three Men Sentenced in Puerto Ricoin Operation Guard Shack ProsecutionRead the Press Release
Two former officers with the Police of Puerto Rico and another individual were sentenced to prison late yesterday for their roles in providing security for drug transactions.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodriguez-Velez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI’s San Juan Field Office made the announcement after sentencing by U.S. District Judge Carmen Consuelo Cerezo in the District of Puerto Rico.
Former Police of Puerto Rico officers Daviel Salinas-Acevedo, 29, of Bayamon, Puerto Rico, and Miguel Santiago-Cordero, 30, of Lares, Puerto Rico, were each sentenced on July 30, 2013, to serve 181 months in prison. In addition, Wendell Rivera-Ruperto, 38, of Las Marias, Puerto Rico, was also sentenced yesterday to 420 months in prison.
On Jan. 10, 2013, Salinas-Acevedo and Santiago-Cordero were each convicted at trial of one count of conspiring to possess with intent to distribute more than five kilograms of cocaine and one count of possessing a firearm in furtherance of a drug transaction. Rivera-Ruperto was convicted of one count of conspiring to possess with intent to distribute more than five kilograms of cocaine, attempting to possess with the intent to distribute more than five kilograms of cocaine and possessing a firearm in furtherance of a drug transaction. Rivera-Ruperto had been convicted previously of 15 other counts arising from his participation in other, related drug transactions.
The case against the three defendants arose from the FBI’s undercover operation known as “Operation Guard Shack.” To date, 131 defendants have pleaded guilty or been convicted at trial, and 123 defendants have been sentenced as a result of the operation.
According to the evidence presented in court, Salinas-Acevedo, Santiago-Cordero and Rivera-Ruperto each provided security for what they believed were illegal cocaine deals that occurred on March 24, April 9 and July 8, 2010, respectively. In fact, each purported drug transaction was one of dozens of simulated transactions conducted as part of the undercover FBI operation. The three men performed armed security for the multi-kilogram cocaine deals by frisking the buyer, standing guard as the kilos were counted and inspecting and escorting the buyer in and out of the transaction.
In return for the security they provided, Salinas-Acevedo, Santiago-Cordero and Rivera-Ruperto each received a cash payment of $2,000. The money was never returned by any of the defendants, and none of the defendants ever reported the transactions.
The case was investigated by the FBI. The Puerto Rico Department of Justice also provided assistance in this case.
The case was prosecuted by Trial Attorneys Anthony J. Phillips and Edward J. Loya Jr. of the Criminal Division’s Public Integrity Section. The U.S. Attorney’s Office for the District of Puerto Rico participated in the investigation and prosecution of this case.
Three Charged with Various Drug Trafficking ConspiraciesRead the Press Release
CORPUS CHRISTI, Texas – A three-count indictment alleging cocaine and heroin trafficking conspiracies has been partially unsealed following the arrest of a Corpus Christi resident, United States Attorney Kenneth Magidson announced today.
The indictment, returned July 25, 2013, was partially unsealed yesterday following the arrest of Corpus Christi resident Jose Manuel Zuniga aka “Slick,” 33. Zuniga made an initial appearance before U.S. Magistrate Judge B. Janice Ellington in Corpus Christi late yesterday, at which time he was ordered detained pending further criminal proceedings. He is set for an arraignment and detention hearing Friday, Aug. 2, 2013, at 9:00 a.m. Also charged but already in custody on related charges in Houston are Ruben Esparza aka “Popo,” 35, and Ernesto Villarreal aka “Crash,” 36, of Robstown. They are expected to make their appearance before a U.S. magistrate judge in Houston. The indictment remains sealed as to those charged but not as yet in custody.
Zuniga is charged with Esparza and Villarreal with possessing with intent to distribute 28 grams of heroin. If convicted, they each face up to 20 years imprisonment as well as $1 million fine.
Esparza and Villarreal also face not less than 10 years and a maximum of life in federal prison as well as a $10 million fine for conspiracy to possess with intent to distribute more than a kilogram of heroin in 2011 and 2012. Both are further charged with conspiring to possess with intent to distribute less than 500 grams of cocaine in 2011. The punishment range for that conviction is at least five and up to 40 years imprisonment as well as a possible $5 million fine.
The indictment also provides notice of the government to seek a money judgment against Esparza in the amount of $126,000, which is alleged to be proceeds from his heroin sales.
This case was investigated through a joint effort by the FBI, Drug Enforcement Administration, Corpus Christi Police Department and Texas Department of Public Safety.
The case is being prosecuted by Assistant United States Attorney Michael Hess.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.The Department Announces Departure of Financial Fraud Enforcement Task Force Executive Director Michael BresnickRead the Press Release
The Justice Department announced today that the Executive Director of the Financial Fraud Enforcement Task Force (FFETF) Michael Bresnick will be leaving the department on Thursday, August 1, 2013. Bresnick has served as Executive Director of the FFETF since October 2011.
“Throughout his tenure as Executive Director of the President’s Financial Fraud Enforcement Task Force, Mike Bresnick has played an indispensable role in leading interagency efforts to ensure stability and fairness in our financial and housing markets – while holding accountable those who take advantage of their fellow citizens,” said Attorney General Eric Holder. “Under Mike’s leadership, the Department’s approach in identifying – and combating – financial fraud has never been smarter, more systematic, or more effective. I am grateful for his tireless work, his dedication to public service, and his commitment to the highest standards of professionalism and integrity. I am certain that the Department, and the American people, will continue to benefit from Mike’s efforts for years to come. And I wish him the best as he takes the next step in his career.”
In 2009, President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. As executive director, Mr. Bresnick has upheld this commitment by overseeing the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud and protect the American consumer.
Protecting Americans from the devastating effects of fraudulent schemes and reinforcing consumer education and awareness has been a primary focus of Bresnick’s tenure. In 2012 he launched the Consumer Protection Working Group to address consumer fraud, an issue that can financially cripple households and can cause extensive losses to the economy. The group has worked across federal law enforcement and regulatory agencies, and with state and local partners, to confront consumer fraud through prosecution and education.
Under Bresnick’s leadership and direction, the department also implemented innovative and aggressivestrategies to investigate fraud in the residential mortgage-backed securities market. In 2012, the department launched the Task Force’s Residential Mortgage-Backed Securities (RMBS) Working Group, which is a collaborative effort between federal and state law enforcement agencies to focus on fraud in the packaging and sale of RMBS offerings. There are now more than 200 lawyers, investigators, analysts and staff actively engaged in RMBS investigatory work across federal and state governments throughout the country. Thus far working group members have taken legal action against major financial institutions that have sought to deceive investors through fraudulent misrepresentation in the sale of mortgage back securities, and more are expected.
Bresnick has been a federal prosecutor, representing the interests of the American people for nearly 10 years. Prior to his role as the executive director of FFETF, he worked as an assistant chief in the Fraud Section of the Criminal Division where he supervised a team of attorneys in the investigation and prosecution of a broad range of financial crimes, including mortgage fraud and bank fraud. Bresnick also served as an assistant U.S. Attorney in Philadelphia, where he prosecuted a wide variety of criminal cases, including financial fraud, health care fraud, public corruption and Racketeer Influenced and Corrupt Organization Act offenses.
“I would like to thank Attorney General Holder and the Department for allowing me the unique opportunity to lead the government’s anti-fraud efforts and pursue justice on behalf of the American people. These last 10 years as a career prosecutor have been an honor and a privilege, and I am truly grateful for the experience.”
Bresnick will end his tenure as Executive Director of FFETF to serve as a partner in the law firm Stein Mitchell Muse and Cipollone LLP in Washington, D.C.
St. Louis Man Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – JAY DUNLAP of St. Louis County was sentenced to 60 months in prison for orchestrating two real estate fraud schemes. After a jury trial in April, Dunlap was convicted of bank fraud and wire fraud in connection with the financing of two residential properties between 2005 and 2009. At that time, Dunlap was the owner of A-Team Mortgage company and fraudulently used straw buyers to obtain mortgages, the proceeds of which he controlled. In addition to his prison term, Dunlap was ordered to pay more than $350,000 in restitution to the victims of his offense.
Dunlap was convicted in April of three felony counts of wire fraud, one felony count of bank fraud and one felony count of mail fraud after a four-day trial. He appeared today for sentencing before United States District Judge E. Richard Webber.
The case was investigated by the U.S. Postal Inspection Service and the Federal Housing Finance Agency Office of Inspector General. Assistant United States Attorneys Tom Albus and Dianna Collins handled the case for the U.S. Attorney's Office.
South Carolina Man Enters Plea to Introducing Stem Cells into Interstate CommerceRead the Press Release
HOUSTON – Vincent Dammai, 42, of Pleasant, S.C., has entered a guilty plea to causing the introduction of stem cells into interstate commerce without the approval of the Food and Drug Administration (FDA), United States Attorney Kenneth Magidson announced today.
Dammai was a former assistant professor of Pathology and Laboratory Medicine at the Medical University of South Carolina. The superseding criminal information charged him with introducing stem cells processed at the university into interstate commerce without FDA approval. Dammai entered the guilty plea yesterday before U.S. Magistrate Judge Frances Stacey.
The charges against Dammai was the result of an investigation by the FDA and the FBI into the manufacture, distribution, sale and use of stem cells in the treatment of human autoimmune diseases. Currently, the FDA has not approved the use of stem cells for the treatment of diseases such as amyotrophic lateral sclerosis (ALS), multiple sclerosis (MS) and Parkinson’s disease.
During the investigation, agents discovered that co-conspirator Francisco Morales falsely represented to the public that he was a physician licensed to practice medicine in the United States and had experience in performing stem cell procedures for the treatment of ALS, MS and Parkinson’s. Agents further discovered Morales obtained stem cells from Fredda Branyon, the owner of a company called Global Laboratories located in Scottsdale, Ariz.
While trying to determine the source of the stem cells sold to Morales by Global Laboratories, agents discovered that Dammai was processing stem cells at the Medical University in South Carolina without university or FDA approval.
During the plea, Dammai admitted that beginning in 2006 while employed with the university, he used university facilities to harvest and process stem cells for a company called Caledonia Consulting located in South Carolina. He further admitted he harvested stem cells for Caledonia from March 2006 through December 2008 and was paid approximately $161,625. Dammai acknowledged he was only authorized to conduct research for kidney cancer and was not permitted to harvest or process stem cells.
Dammai also admitted that in late December 2008, Caledonia Consulting was sold to Branyon and that Caledonia was then dissolved. Branyon then established a company named Global Laboratories. Dammai admitted that in May 2009 he entered into a consulting agreement with Branyon to provide guidance to Global Laboratories regarding the processing of stem cells. As a result of this agreement, Dammai routinely received umbilical cord blood in South Carolina from Global Laboratories and processed stem cells from the cord blood at the Medical University. Dammai would then send the stem cells he processed to Global Laboratories in Arizona. However, Dammai did not have any formal training in how to process stem cells.
Dammai admitted he received more than $55,00 from Global Laboratories for processing the stem cells. The stem cells were later sold by Branyon to Francisco Morales.
Sentencing has been set for Nov. 14, 2013, at which time Dammai faces up to one year in prison and a $10,000 fine.
Branyon and Morales have also entered guilty pleas in relation to the case and are also pending sentencing.
Assistant United States Attorneys Samuel Louis and Cedric Joubert prosecuted the case.
Shiprock, N.M., Man Pleads Guilty to Federal Child Sex Abuse ChargeRead the Press Release
ALBUQUERQUE – Herbert Ben, Sr., 63, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty earlier today to sexually abusing a minor under a plea agreement with the U.S. Attorney’s Office.
Ben, Sr., and co-defendants Rosabelle Ben, 58, and Bruce Hamilton, 77, also members of the Navajo Nation from Shiprock, were arrested in May 2012, based on a criminal complaint alleging child sex abuse offenses. All three subsequently were indicted and charged with sexual abuse of a child between the age of 12 and 16 years, and aiding and abetting the sexual abuse of a child.
Today Ben, Sr., entered a guilty plea to sexual abuse of a minor and admitted that, on a day between Aug. 2010 and Dec. 2011, he sexually abused the victim at a location within the Navajo Reservation.
Under the terms of the plea agreement, Ben, Sr. will be sentenced to a federal prison term within the range of two to five years followed by a term of supervised release to be determined by the court. Ben, Sr. also will be required to register as a sex offender. Ben, Sr. was remanded into the custody of the U.S. Marshals Service after entering his guilty plea and he will remain detained pending his sentencing hearing, which has yet to be scheduled.
Co-defendants Rosabelle Ben and Hamilton have entered not guilty pleas and are pending trial. The charges against Rosabelle Ben and Hamilton are merely accusations and they are presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. The case is being prosecuted by Assistant U.S. Attorneys Jacob A. Wishard and Novaline D. Wilson as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Shelton Man Involved in Illegal Sports Betting Ring Sentenced to Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that DOMENICO MANCHISI, also known as “Dom,” 65, of Shelton, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to six months of imprisonment, followed by one year of supervised release, for his involvement in an illegal sports bookmaking operation. MANCHISI also was ordered to pay a fine of $20,000 and to forfeit $20,000.
According to court documents and statements made in court, after a long-term investigation led by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation and the Stamford Police Department, MANCHISI and 19 other individuals were charged with various offenses related to their involvement in an illegal Internet sports bookmaking operation and illegal card gambling clubs in Stamford and Hamden that were controlled by the Gambino Crime Family of La Cosa Nostra.
The investigation, which included the use of court-authorized wiretaps, revealed that MANCHISI was involved in a large-scale sports bookmaking operation in which gamblers placed bets with offshore Internet sports-gambling websites, particularly www.44wager.com based in Costa Rica. MANCHISI regularly collected the cash proceeds of a sports book operating in the New Haven area and transported the cash to individuals in Stamford.
FBI analysis of the sports-betting web site utilized by the co-defendants has determined that the total gross revenues of the Stamford-based gambling operation were nearly $1.7 million from October 2010 to June 2011.
On March 28, 2013, MANCHISI pleaded guilty to one count of operating an illegal gambling business.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. This case is being prosecuted by Assistant United States Attorneys Hal Chen and Peter Jongbloed.
PUBLIC AFFAIRS CONTACT:
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[email protected]Sesser Man Sentenced for Firearm OffenseRead the Press Release
Admitted Use of Drugs While Possessing Firearm
Robert D. Olguin, 47, from Sesser, IL, was sentenced on July 29, 2013, in United States District Court in East St. Louis, IL, on one count of unlawful possession of a firearm by a user of a controlled substance, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Olguin was sentenced to 5 years on probation, a $100 fine and ordered to pay a $100 special assessment. He also agreed to forfeit the firearm.
On October 18, 2012, a motorcycle patrol officer running radar checks on vehicles, clocked a pick-up truck driven by Olguin traveling over the maximum allowable speed limit of 65 mph in Mascoutah, IL. The officer executed a traffic stop and noticed a strong odor of marijuana emanating from the vehicle as he approached. He advised Olguin of the reason for the traffic stop, and asked if there was marijuana in the car. Olguin handed the officer a small Altoid can retrieved from a floorboard on the passenger side of the truck. It contained a small leafy-like substance, as well as a smoking device. A further search of the vehicle uncovered a loaded rifle in an open case in the back driver’s side door of this vehicle and two manila envelopes containing approximately thirty grams of marijuana. Olguin admitted ownership of the firearm and his intent to smoke the marijuana.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Self-proclaimed Leader of Sovereign Citizen Group Sentenced to Federal Prison for Promoting Tax Fraud SchemeRead the Press Release
The Justice Department, the Internal Revenue Service (IRS) and the FBI announced today that James Timothy Turner, also known as Tim Turner, was sentenced to serve 18 years in federal prison for conspiracy to defraud the United States, attempting to pay taxes with fictitious financial instruments, attempting to obstruct and impede the IRS, failing to file a 2009 federal income tax return and falsely testifying under oath in a bankruptcy proceeding.
In March 2013, following a five-day jury trial, Turner was convicted on 10 counts in the U.S. District Court for the Middle District of Alabama. Based on the evidence introduced at trial and in court filings, Turner, the self-proclaimed “president” of the sovereign citizen group Republic for the united States of America (RuSA), traveled the country in 2008 and 2009 conducting seminars teaching attendees how to defraud the IRS by preparing and submitting fictitious bonds to the U.S. government in payment of federal taxes, mortgages, and other debt. The evidence at trial revealed the bonds are fictitious and worthless but witnesses testified that Turner used special paper, financial terminology and elaborate borders in an effort to make them look authentic and more likely to succeed in defrauding the recipient. Turner was convicted of sending a $300 million fictitious bond in his own name and of aiding and abetting others in sending fifteen other fictitious bonds to the Treasury Department to pay taxes and other debts.
The evidence at trial also established that Turner taught people how to file retaliatory liens against government officials who interfered with the processing of fictitious bonds. Turner filed a purported $17.6 billion maritime lien in Montgomery County, Ala., Probate Court against another individual. This investigation began after Turner and three other self-proclaimed “Guardian Elders” sent demands to all 50 governors in the United States in March 2010 ordering each governor to resign within three days to be replaced by a “sovereign” leader or be “removed.” The FBI immediately began investigating Turner and IRS- Criminal Investigation (IRS-CI) joined the investigation soon thereafter.
“This lengthy prison sentence shows that tax defiers like Turner who use bogus tax schemes and file retaliatory liens against government officials will be punished,” said Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally. “The Justice Department will continue to work with law enforcement to investigate and prosecute those who attempt to defraud the government.”
“This sentence should send a message that if you attempt to use retaliatory tax liens and fraudulent tax schemes as weapons against the United States and its citizens you will be punished,” stated acting U.S. Attorney Sandra J. Stewart for the Middle District of Alabama. “We cannot and will not tolerate those who violate the law for financial gain. I would like to thank the law enforcement officers who worked vigilantly on this case to bring this criminal to justice.”
“Turner influenced others with his false ideology by aggressively promoting obstruction of the IRS,” stated Richard Weber, Chief, IRS-Criminal Investigation. “In truth, Turner’s own defiance of IRS and his attempts to lead others through the same labyrinth of lies and distortions led to his downfall as shown by the significant sentence he must now serve. Today’s sentence should also send a strong message to those who may follow in Turner’s footsteps and attempt to defy their tax obligations. The legality of our income tax laws has been challenged time and time again and the courts have consistently upheld them.”
“The FBI is committed to vigorously investigate individuals and groups who steal from the federal government for financial gain through schemes deigned to avoid payment on loans, taxes and other obligations owed the federal government,” stated Stephen Richardson, Special Agent in Charge of the FBI, Mobile Division.
In addition to prison time, Turner was ordered to pay $26,021 in restitution to the IRS and to serve a five year term of supervised release upon his release from prison.
This case was investigated by special agents of the FBI and IRS-CI, was prosecuted by Tax Division Trial Attorney Justin Gelfand and Middle District of Alabama Assistant U.S. Attorney Gray Borden.
Self-Proclaimed Leader of Sovereign Citizen Group Sentenced to Federal Prison for Promoting Tax Fraud SchemeRead the Press Release
Montgomery, Alabama - The Justice Department, the Internal Revenue Service (IRS) and the FBI announced today that James Timothy Turner, also known as Tim Turner, was sentenced to serve 18 years in federal prison for conspiracy to defraud the United States, attempting to pay taxes with fictitious financial instruments, attempting to obstruct and impede the IRS, failing to file a 2009 federal income tax return and falsely testifying under oath in a bankruptcy proceeding.
In March 2013, following a five-day jury trial, Turner was convicted on 10 counts in the U.S. District Court for the Middle District of Alabama. Based on the evidence introduced at trial and in court filings, Turner, the self-proclaimed “president” of the sovereign citizen group Republic for the united States of America (RuSA), traveled the country in 2008 and 2009 conducting seminars teaching attendees how to defraud the IRS by preparing and submitting fictitious bonds to the U.S. government in payment of federal taxes, mortgages, and other debt. The evidence at trial revealed the bonds are fictitious and worthless but witnesses testified that Turner used special paper, financial terminology and elaborate borders in an effort to make them look authentic and more likely to succeed in defrauding the recipient. Turner was convicted of sending a $300 million fictitious bond in his own name and of aiding and abetting others in sending fifteen other fictitious bonds to the Treasury Department to pay taxes and other debts.
The evidence at trial also established that Turner taught people how to file retaliatory liens against government officials who interfered with the processing of fictitious bonds. Turner filed a purported $17.6 billion maritime lien in Montgomery County, Ala., Probate Court against another individual. This investigation began after Turner and three other self-proclaimed “Guardian Elders” sent demands to all 50 governors in the United States in March 2010 ordering each governor to resign within three days to be replaced by a “sovereign” leader or be “removed.” The FBI immediately began investigating Turner and IRS- Criminal Investigation (IRS-CI) joined the investigation soon thereafter.
“This lengthy prison sentence shows that tax defiers like Turner who use bogus tax schemes and file retaliatory liens against government officials will be punished,” said Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally. “The Justice Department will continue to work with law enforcement to investigate and prosecute those who attempt to defraud the government.”
“This sentence should send a message that if you attempt to use retaliatory tax liens and fraudulent tax schemes as weapons against the United States and its citizens you will be punished,” stated acting U.S. Attorney Sandra J. Stewart for the Middle District of Alabama. “We cannot and will not tolerate those who violate the law for financial gain. I would like to thank the law enforcement officers who worked vigilantly on this case to bring this criminal to justice.”
“Turner influenced others with his false ideology by aggressively promoting obstruction of the IRS,” stated Richard Weber, Chief, IRS-Criminal Investigation. “In truth, Turner’s own defiance of IRS and his attempts to lead others through the same labyrinth of lies and distortions led to his downfall as shown by the significant sentence he must now serve. Today’s sentence should also send a strong message to those who may follow in Turner’s footsteps and attempt to defy their tax obligations. The legality of our income tax laws has been challenged time and time again and the courts have consistently upheld them.”
“The FBI is committed to vigorously investigate individuals and groups who steal from the federal government for financial gain through schemes deigned to avoid payment on loans, taxes and other obligations owed the federal government,” stated Stephen Richardson, Special Agent in Charge of the FBI, Mobile Division.
In addition to prison time, Turner was ordered to pay $26,021 in restitution to the IRS and to serve a five year term of supervised release upon his release from prison.
This case was investigated by special agents of the FBI and IRS-CI, was prosecuted by Tax Division Trial Attorney Justin Gelfand and Middle District of Alabama Assistant U.S. Attorney Gray Borden.
PRESS CONTACT: Clark Morris
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Telephone: (334) 551-1755
Fax: (334) 223-7617Silver Spring Tax Preparer Sentenced for Making a False Statement on a Tax ReturnRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Alejandro A. Salas, age 65, of Silver Spring, Maryland today to 18 months in prison followed by one year of supervised release for making a false statement on a tax return. Judge Titus also ordered Salas to pay $393,018 in restitution and perform 100 hours of community service.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“IRS Criminal Investigation in partnership with the United States Attorney for the District of Maryland will continue to pursue individuals and businesses that do not pay all the taxes that are owed to the U.S. treasury,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington, D.C. Field Office. “Today’s sentencing of Mr. Salas should be a warning to others that IRS Criminal Investigation is focused on those that intentionally underreport taxable income, no matter what entity or individual they attempt to hide behind.”
According to his plea agreement, from 2004 to 2008, Salas ran G&S Enterprises of Maryland, a tax return preparation business in Silver Spring that also offered translation services, travel agency services, accounting and bookkeeping services for local companies; facilitated international money transfers; and brokered mortgage loans. In 2009, after learning that he was the target of a criminal investigation, Salas moved the location of his business and began preparing tax returns for clients under the corporate name TAX USA, which he incorporated under the name of another individual.
Between 2004 and 2009, Salas’ business prepared over 15,700 tax returns for clients.
Salas admitted that for tax years 2003 through 2005, he underreported the income from his tax preparation business on his individual income tax returns; and underreported the income from the business on the corporate tax return he filed for the 2006 tax year. For example, on his 2005 income tax return Salas listed the gross income from his sole proprietorship as $295,537, when in fact, the gross income from his business substantially exceeded that amount. For tax years 2007 through 2009, Salas failed to file either corporate or individual tax returns.
The total tax loss to the government as a result of Salas’ actions is $393,018.
United States Attorney Rod J. Rosenstein praised the IRS-CI for its work in the investigation and thanked Assistant U.S. Attorney Sujit Raman, who prosecuted the case.
Rochester Woman Pleads Guilty to Bring Marijuana into a Federal PrisonRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Shanna Nix, 24, of Rochester, N.Y., pleaded guilty to providing contraband to an inmate at a federal correctional institution before U.S. District Court Judge Frank P. Geraci. The charge carries a maximum penalty of five years in prison and a fine of up to $250,000.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the defendant was visiting a friend who was an inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania. During that visit, Nix was observed on surveillance video placing four balloons filled with marijuana into a bag of food she was sharing with the inmate. Before the inmate could ingest the balloons, corrections officers intercepted them.
The defendant was originally indicted in the Western District of Pennsylvania, but the case was transferred to the Western District of New York for the plea.
Sentencing is scheduled for November 6, 2013 at 3:30 p.m. before Judge Geraci.
Rochester Man Sentenced in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Anthony Davis, 43, of Rochester, N.Y., who was convicted of production of child pornography, was sentenced to 15 years in prison and 15 years of supervised release by the U.S. District Judge Frank P. Geraci, Jr,.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that in July 2012, City of Rochester Police received a report from a cooperating witness who found a sexually explicit video of a seven-year old minor child on a smart phone belonging to the defendant. The cooperating witness was able to identify the minor victim and was able to identify Davis's voice from the video. The defendant used the minor to produce a sexually explicit image with his smart phone.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation Cyber Crime Task Force, under the direction of Acting Special Agent in Charge Richard M. Frankel, the City of Rochester Police Department, under the direction of Chief James Sheppard and the Monroe County District Attorney's Office, under the direction of Sandra Doorley.
Redby Man Indicted for Assaulting Others with A Tire IronRead the Press Release
MINNEAPOLIS—A federal indictment unsealed yesterday charges a 20-year-old Redby man with assaulting two other people while on the Red Lake Indian Reservation. The indictment, which was filed on July 23, 2013, charges Ryan Devin Ravensborg with two counts of assault with a dangerous weapon and two counts of assault resulting in serious bodily injury. The indictment was unsealed following Ravensborg’s initial appearance in federal court.
The indictment alleges that on May 26, 2013, Ravensborg assaulted the two victims with a metal object. One of the victims had a depressed skull fracture and intracranial bleeding, while the second victim suffered a laceration on his scalp that required staples and a linear skull fracture.
If convicted, Ravensborg faces a potential maximum penalty of ten years in prison on each count. Any sentence will be determined by a federal district court judge. This case is the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney John E. Kokkinen.Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Real Estate Agent Arrested for Money LaunderingRead the Press Release
McALLEN, Texas - Freddy Centeno, of Brownsville, has been arrested following the return of two-count indictment alleging money laundering for a convicted drug trafficker and making false statements to federal agents, United States Attorney Kenneth Magidson announced today.
Centeno was taken into custody just a short time ago and he is expected to make his initial appearance before U.S. Magistrate Judge Ronald Morgan.
The sealed indictment was returned July 23, 2013, and unsealed today upon Centeno’s arrest. The indictment alleges that Centeno, a licensed real estate agent, helped a narcotics trafficker launder drug profits through the purchase of real properties in Brownsville.
If convicted, Centeno faces up to 20 years in prison and up to a $500,000 fine.
The arrest comes as a result of the ongoing Organized Crime Drug Enforcement Task Force investigation dubbed Operation Spike Strip. The narcotics trafficking and money-laundering investigation targeted the Armando Arambul drug trafficking organization which operated under the auspices of the Gulf Cartel in Matamoros, Mexico, and throughout the Southern District of Texas.
Arambul and others were responsible for transporting multi-ton quantities of cocaine to Houston and other major U.S. cities and remitted millions of dollars to the Gulf Cartel. Arambul was convicted and is set for sentencing Oct. 21, 2013, at which time he faces up to life in prison.
The investigation was conducted by the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, FBI, Customs and Border Protection, Border Patrol, Cameron County District Attorney’s Office-Narcotics Investigation Division and the U.S. Marshals Service. Assistant United States Attorneys Jesse Salazar is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Professional Hunter Violated Federal ProbationRead the Press Release
KANSAS CITY, KAN. – A professional hunter from Tennessee violated his federal probation and must spend a total of 30 days in Bureau of Prisons custody, U.S. Attorney Barry Grissom said today.
U.S. Magistrate Judge James P. O’Hara ruled that William “Spook” Spann, 50, Dickinson, violated the conditions of his release after his conviction for a misdemeanor Lacey Act violation in Kansas. O’Hara’s order states that Spann:
– Continues on probation until Feb. 28, 2016.
– Is ordered to spend a total of 30 days during nights and weekends in the custody of the Bureau of Prisons between now and Feb. 28, 2014.
– Is ordered not hunt anywhere in the United States or the world until Aug. 1, 2014.
Last year, Spann pleaded guilty to transporting across state lines a white-tailed deer that was unlawfully taken in Stafford County, Kan. As part of the probation he was prohibited from hunting for six months, admonished not to commit any further federal crimes and ordered to pay a $10,000 fine and $10,000 restitution.On June 10, the federal probation office in Kansas filed a petition alleging Spann violated his probation by hunting in Tennessee and violating a Tennessee law against baiting wildlife. O’Hara ruled that Spann violated the terms of his probation by hunting in the United States within six months of his sentencing and baiting turkeys in violation of Tennessee state law.
Grissom commended the U.S. Fish and Wildlife Services, the Tennessee Wildlife Resource Agency and Assistant U.S. Attorney Chris Oakley for their work on the case.
Pittsburgh Man Sentenced to 2 Years in Prison for Hoax Bomb ThreatsRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh man has been sentenced in federal court to 24 months in prison followed by three years supervised release on his conviction of violating federal bomb threat hoax laws, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Termaine Washington, 23.
According to information presented to the court, Washington conveyed several false bomb threats by telephone to the Allegheny County 911 Center, by stating that a bomb would go off at the Allegheny County Jail, PNC Park, and the T-station.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Washington.
Philadelphia Felon Charged with Illegally Possessing AmmunitionRead the Press Release
PITTSBURGH, Pa. - A Philadelphia man has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearm laws, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on July 30, named Elanda Bell, 55, as the sole defendant.
According to the indictment presented to the court, between Jan. 3, 2008, and June 29, 2013, Bell possessed ten .41 Caliber cartridges. Bell had previously been convicted of manslaughter and aggravated assault in the Court of Common Pleas of Philadelphia. Federal law prohibits anyone who has been convicted of a crime punishable by more than one year from possessing ammunition or a firearm.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clairton Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pair Charged with Using Credit Cards Taken from Car in Garage of Riverton HomeRead the Press Release
Case Filed as a Part of Utah Identity Theft Task Force InitiativeSALT LAKE CITY – Two individuals have been charged in a federal complaint with using credit cards stolen from a Riverton woman’s wallet. The wallet was taken from her car while it was parked in the garage at her home on June 24, 2013. The complaint alleges the pair used the credit cards to make about $1,037.23 in purchases at Sportsman’s Warehouse in Midvale and a Nike Store in West Jordan.
Jason Oler Kettler, age 35, of Magna, and Chaunte Marie Thompson, age 31, of Salt Lake City, who are charged in the complaint with one count of using an unauthorized access device (credit card), are scheduled to make an initial appearance on the charges at 3 p.m. Wednesday before U.S. Magistrate Judge Evelyn J. Furse.
According to the complaint, the victim of the theft, identified in the document as J.B., contacted the Unified Police Department on June 24, 2013, to report that an unknown individual entered her residential garage in Riverton and stole her wallet from her parked car. J.B. had video footage of the burglary.
A UPD officer reviewed the footage and observed a red passenger car with a sun roof pull into the drive way. A single white male exited the car and entered the garage. The male was observed coming and going from the garage to his vehicle several times. A few minutes later, he backed out of the drive way and left.
Two days later, J.B. reported to police that three of the credit cards in her stolen wallet had been used without her authorization on the day of the burglary. One was used at Sportsman’s Warehouse in Midvale to make a purchase of $493.49. Two others were used at the Nike Store in West Jordan to make purchases of $341.85 and $201.89. Officers worked with the stores to obtain video of the transactions and other information about the purchases.
According to the complaint, on July 2, 2013, after reviewing video surveillance tapes from several sources and receiving numerous tips in the case, a UPD detective was able to identify Kettler and Thompson as suspects in the case by matching their driver’s licenses and prior booking photos to the suspects in the videos.
This case is being investigated by the Utah Identity Theft Task Force, which is comprised of federal, state, and local law enforcement agencies working together to investigate identity theft related crimes throughout the State of Utah. The Salt Lake District Attorney’s Office and the U.S. Attorney’s Office will continue to coordinate efforts as the investigation continues.
Complaints are not findings of guilt. Individuals charged in complaints are presumed innocent unless or until proven guilty in court. The potential maximum penalty for one count of access device fraud is 10 years in federal prison and a fine of $250,000.
Oregon Man Sentenced to 20 Years in Federal PrisonRead the Press Release
Linn County Man Admits to being an Armed Career Criminal and Shooting Two Men with a Short Barreled Shotgun during a Drug DealEUGENE, Ore. – Karl David Bowman, Jr., 36, of Linn County, Oregon, appeared before U. S. District Court Chief Judge Ann Aiken in Eugene today and pled guilty to being an armed career criminal. Bowman admitted shooting two men at Cheadle Lake Park on June 16, 2012, with a short-barreled shotgun loaded with birdshot while attempting to rob them of drugs, money, and their car. The men received serious but non-life threatening injuries.
After accepting the guilty plea, Chief Judge Aiken sentenced Bowman to 20 years in prison and five years of post-prison supervision following his release. Chief Judge Aiken sentenced Bowman as an armed career criminal because he possessed the shotgun after being previously convicted of two robberies, a residential burglary, and delivery of methamphetamine.
According to court documents and statements made in court, Bowman and an accomplice met two men near Cheadle Lake in Lebanon, Oregon, to conduct a drug deal. Bowman carried a short-barreled shotgun as he walked up to the car to conduct the deal and pointed the barrel of the weapon at the driver’s head and toward the passenger. When Bowman demanded they get out of the car and give him money, drugs and the car keys, the driver tried to accelerate and Bowman shot both men. The driver was wounded in the neck and shoulder, and the passenger was wounded in the left thigh.
Linn County Sheriff deputies and Lebanon police officers arrested Bowman and his accomplice as they attempted to leave the shooting scene. Police recovered the abandoned weapon and also found drug paraphernalia and stolen property in Bowman’s vehicle. At the time of his arrest, Bowman was wanted for identification theft, forgery, theft, illegal possession of weapons, failure to appear, trespassing and traffic crimes in Oregon and Washington. He had been released from the Oregon Department of Corrections on September 8, 2011.
The defendant’s guilty plea in federal court is the result of a global settlement, whereby the 240 months in federal prison are part of a plea agreement with the U. S. Attorney’s Office, District of Oregon, Clackamas County District Attorney, Linn County District Attorney, King County Prosecuting Attorney, Lewis County Prosecuting Attorney, and Longview City Prosecuting Attorney. As part of the overall agreement, Bowman agreed that he will pay restitution to his victim in King County, Washington.
This case was investigated by the U.S. Bureau of Alcohol, Tobacco and Firearm, Oregon
State Police, Linn County Sheriff’s Office, and the Lebanon Police Department. Assistant U.S. Attorney Frank R. Papagni, Jr., with the assistance of Linn County Deputy District Attorney Coleen Cerda, prosecuted the case.
Ohio Man Sentenced to Federal Prison for Role in Nationwide Counterfeit Identification and Check RingRead the Press Release
CONCORD, N.H. –Omar K. Patterson, 43, of Cleveland Ohio has been sentenced in United States District Court for the District of New Hampshire to 36 months in prison for wire fraud, announced United States Attorney John P. Kacavas.
Between December 2009 and August 2011, Patterson travelled across the country with others cashing payroll checks at the customer service desks of Wal-Mart stores knowing the payroll checks were counterfeit. The counterfeit checks were payable to actual persons whose identities Patterson and his co-conspirators had misappropriated. Patterson facilitated the transactions by presenting counterfeit driver’s licenses with his photograph but listing the names of the payees of the checks on them. The scheme involved the negotiation of hundreds of counterfeit checks and resulted in actual losses of several hundred thousand dollars.
Patterson was arrested on August 23, 2011, when the Tilton, New Hampshire, police stopped his rental vehicle for investigation as it was leaving a local retail mall. The vehicle was found to contain counterfeiting equipment, hundreds of counterfeit checks and fake identifications.
This case was investigated by the United States Secret Service and the Tilton, New Hampshire Police Department. The case is being prosecuted by Assistant U.S. Attorney Bill Morse.
Nurse Pleads Guilty to Fraudulently Acquiring A Controlled SubstanceRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 38-year-old Madelia nurse pleaded guilty to fraudulently acquiring a controlled substance, namely oxycodone, while employed at an inpatient health care facility. Tess Marie Johnson pleaded guilty to one count of obtaining a controlled substance by fraud. Johnson, who was indicted on May 21, 2013, entered her plea before United States District Court Judge Patrick J. Schiltz.
In her plea agreement, Johnson admitted that in October 2012, she obtained for her own use Percocet tablets that had been intended for patients. Specifically, she removed the Percocet, which is oxycodone, that was intended for patients and replaced it with Tylenol tablets.
For her crime, Johnson faces a potential maximum penalty of four years in prison. Judge Schiltz will determine her sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the U.S. Drug Enforcement Administration and the Mankato Police Department. It is being prosecuted by Assistant U.S. Attorney Nicole A. Engisch.New Jersey Woman to Enter Guilty Plea in an Interstate ConspiracyRead the Press Release
Involving Bank Fraud, Money Laundering And Drug Manufacturing
ChargesThe United States Attorney’s Office for the Middle District of Pennsylvania announced that Evelyn Ugalde, age 37, of Hopatcong, New Jersey, has agreed to plead guilty to conspiracy to commit bank fraud.
The felony Information filed against Ugalde in U.S. District Court in Scranton charges that she engaged in a conspiracy involving nominees selling their credit in exchange for cash payments. Ugalde’s role in the alleged conspiracy involved the preparation, execution, and submission of a false mortgage application to IndyMac Bank for a mortgage in the amount of $216,000. In exchange for the use of her name and credit, Ugalde allegedly received cash payments. The property falsely mortgaged is located in Gilbert, Monroe County, Pennsylvania. The plea agreement is subject to the Court’s approval.
Ugalde’s co-conspirators are charged in a superseding indictment filed on June 26, 2012. They include Carlos Guerra-Lescay, age 51, Eileen Mesa, age 36, Ernesto Huerta Martin, age 51, Jose Frias, age 43, all from Newark, NJ, Vivian Cruz, age 49, and Antonio Figueredo, age 41, both from Easton, PA, and Osleivy Gomez, age 34, North Bergen, NJ. The superseding indictment alleges that the defendants engaged in a scheme to acquire properties with false financial information submitted to multiple financial institutions.
The properties, located in the Brodheadsville and Gilbert area of Monroe County, as well as in New Jersey, were then used to facilitate an indoor marijuana growing operation. Search warrants executed by the Pennsylvania State Police at three of the properties in August 2011 uncovered an alleged large-scale indoor marijuana grow operation.
This case was investigated by the Drug Enforcement Administration, the Department of the Treasury - Internal Revenue Service, and the Pennsylvania State Police. Prosecution has been assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Morgantown Resident Sentenced to More than Six Years Imprisonment on Firearms ConvictionRead the Press Release
CLARKSBURG, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II announced that the following individuals recently appeared in Federal Court in Clarksburg.
SAMAD MADIR HARVEY a/k/a “WES,” age 30, of Morgantown, was sentenced to
77 months imprisonment to be followed by three years of supervised release. HARVEY was convicted on April 18, 2013, by a Clarksburg jury on one count of “Felon in Possession of a Firearm.” HARVEY was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Morgantown Police Department.DANNY POSTON, age 24, of Pittsburgh, Pennsylvania, was sentenced to 70 months imprisonment to be followed by eight years of supervised release for “Possession with Intent to Distribute in Excess of 28 Grams of Cocaine Base within 1,000 Feet of Monticello Avenue Playground” on June 2, 2011. POSTON was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was investigated by the Harrison County Drug Task Force consisting of officers from the Clarksburg Police Department, the Harrison County Sheriff’s Department and the Bridgeport Police Department
The HARVEY and POSTON cases were prosecuted by Assistant United States
Attorney Zelda E. Wesley.TROY ANTJUAN CLAYTON a/k/a “NY” a/k/a “PASTOR,” age 29, of Clarksburg, was sentenced to 77 months imprisonment to be followed by six years of supervised release. CLAYTON entered pleas of guilty on April 8, 2013, to one count of “Conspiracy to Distribute More than 28 Grams of Crack Cocaine”, six counts of “Distribution of Crack Cocaine within
1,000 Feet of a Protected Location,” one count of “Maintaining a Drug-Involved Premise” to store, distribute and use crack cocaine, and one count of “Distribution of Crack Cocaine.” CLAYTON was remanded to the custody of the United States Marshal pending designation to a Federal institution.TAMMY KENNEDY, age 46, of Clarksburg, was sentenced to 30 months imprisonment to be followed by six years of supervised release for the “Distribution of Crack Cocaine within
1,000 Feet of Glen Elk City Park” on June 21, 2012. KENNEDY was remanded to the custody of the United States Marshal pending designation to a Federal institution.The CLAYTON and KENNEDY cases were prosecuted by Criminal Chief Shawn A. Morgan and investigated by the Harrison County Drug Task Force consisting of officers from the Clarksburg Police Department, the Harrison County Sheriff’s Department and the Bridgeport Police Department.
KHALLID CARTER, age 23, entered a plea of guilty to “Assault of a Correctional Officer Causing Injury” on October 30, 2012, when CARTER assaulted three correctional officers during an incident in the Special Housing Unit. CARTER was sentenced to 36 months imprisonment to run consecutive with his current 120-month sentence.
NATHANIEL TARVER, age 24, entered a plea of guilty to “Possession of a Prohibited Object” on October 10, 2012, when TARVER was found to be in possession of homemade weapon. TARVER was sentenced to twelve months imprisonment to run consecutive to his current 261-month sentence.
JEFFREY DUBLIN, age 45, entered a plea of guilty to “Possession of a Prohibited Object” on July 28, 2012,when DUBLIN was found to be in possession of marijuana. DUBLIN was sentenced to two months imprisonment to run consecutive to his current 96-month sentence.
The CARTER, TARVER and DUBLIN cases were prosecuted by Assistant United States Attorney Brandon S. Flower and investigated by the Special Investigative Services Unit at USP Hazleton.
JOHN HARLOW, age 46, of Clarksburg, was sentenced to 57 months imprisonment to be followed by three years of supervised release for “Possession of a Firearm by a Convicted Felon.” HARLOW was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Criminal Chief Shawn A. Morgan and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Mobridge Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mobridge, South Dakota, man has been indicted by a federal grand jury.
Brandon James Noisy Hawk, age 31, was indicted on July 17, 2013, for failing to register as a sex offender. Noisy Hawk appeared before U.S. Magistrate Judge William D. Gerdes on July 25, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction of the charge is 10 years imprisonment, a $250,000 fine, or both, 5 years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Noisy Hawk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Noisy Hawk was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Mobridge Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mobridge, South Dakota, man has been indicted by a federal grand jury.
Brandon James Noisy Hawk, age 31, was indicted on July 17, 2013, for failing to register as a sex offender. Noisy Hawk appeared before U.S. Magistrate Judge William D. Gerdes on July 25, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction of the charge is 10 years imprisonment, a $250,000 fine, or both, 5 years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Noisy Hawk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Noisy Hawk was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Michigan Man Sentenced to 165 Years <br /> for Child Sex Tourism OffensesRead the Press Release
A former Michigan resident was sentenced today in Miami to 165 years in prison, followed by a lifetime of supervised release, for child sex tourism offenses, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, U.S. Immigration and Customs Enforcement (ICE) Deputy Director Daniel Ragsdale, and Special Agent in Charge Alysa D. Erichs of the ICE Homeland Security Investigation’s (HSI) Miami Office.
Matthew Andrew Carter, 68, aka “William Charles Harcourt” and “Bill Carter,” formerly of Brighton, Mich., was sentenced by U.S. District Judge Joan A. Lenard of the Southern District of Florida. On Feb. 28, 2013, a jury found Carter guilty of five counts of traveling in foreign commerce from the United States to Haiti for the purpose of engaging in illicit sexual conduct with children and one count of attempting to do so.
“For 15 years, Matthew Carter, under the guise of serving as an international humanitarian, sexually abused more than 50 Haitian children,” said Acting Assistant Attorney General Raman. “He held himself out as a savior to vulnerable children in Haiti, but in fact cruelly forced those children to choose between poverty and submitting to repeated sexual abuse. Child sex tourism is a heinous crime, and today's sentence demonstrates our commitment to bringing the weight of justice on anyone who seeks to exploit our most vulnerable citizens, wherever they reside.”
“Today’s sentence brings to a close a horrific chapter in the lives of these victims,” said U.S. Attorney Ferrer. “While nothing can ever undo the abuse these victims endured throughout the years, we hope that today’s sentence restores them with some sense of confidence and trust, and satisfaction that justice has been served.”
“Crimes against children are some of the most heinous our agency investigates,” said ICE Deputy Director Daniel Ragsdale. “It is even more despicable that Mr. Carter used his position of trust to abuse children who relied on him for care. Today’s sentence should serve as notice to other child predators. We will find you, arrest you and make sure that you are prosecuted to the fullest extent of the law.”
According to court documents and evidence presented at trial, from 1995 to 2011, Carter resided at and operated the Morning Star Center near Port-au-Prince, Haiti, prior to his arrest on May 8, 2011. The Morning Star Center was a residential facility that provided shelter, food, clothing and school tuition to Haitian children. The children who lived at the Morning Star Center were from impoverished families that could not feed, educate or otherwise support their children. The evidence at trial showed that Carter specifically targeted children in need and preyed on their vulnerability. Between 1995 and 2011, Carter frequently traveled between the United States and Haiti in order to raise funds from churches and donors for the continued operation of the center. Carter sexually and physically abused the children in his care and custody at the center during this period of time. According to court documents and evidence presented at trial, Carter used force to get these children to comply with his sexual demands and required the children to participate in sexual acts in order to receive food, remain at the center and/or continue to receive school tuition payments.
At trial, 16 Haitian victims who resided at the Morning Star Center between 1995 and 2011 testified. Additionally, four witnesses testified that they were sexually abused by Carter in London during the 1970s. Carter previously was charged with and acquitted of charges related to the sexual abuse of children in London, Cairo and Winter Haven, Fla.
The case was investigated by HSI Miami, HSI Country Attaché Santo Domingo, Dominican Republic, and the HSI Santo Domingo Transnational Criminal Investigative Unit. Substantial assistance was provided by the U.S. Secret Service Miami field office; Haitian National Police Brigade for the Protection of Minors; Haitian Social Services; Ministry of the Interior for Haiti; Bureau of Diplomatic Security, Regional Security Office for the U.S. Embassy in Port-au-Prince; Consular Section of the U.S. Embassy in Port-au-Prince; London Metropolitan Police Service; FBI’s Washington, Boston and Miami Field Offices; ICE-HSI Attaché’s Offices in London and Cairo; U.S. Coast Guard; and U.S. Citizenship and Immigration Service in Port-au-Prince.
The case was prosecuted by Trial Attorney Bonnie L. Kane of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Maria K. Medetis of the Southern District of Florida.
Michigan Man Sentenced to 165 Years for Child Sex Tourism OffensesRead the Press Release
A former Michigan resident was sentenced today in Miami to 165 years in prison, followed by a lifetime of supervised release, for child sex tourism offenses, announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Immigration and Customs Enforcement (ICE) Deputy Director Daniel Ragsdale, and Special Agent in Charge Alysa D. Erichs of the ICE Homeland Security Investigation’s (HSI) Miami Office.
Matthew Andrew Carter, 68, aka “William Charles Harcourt” and “Bill Carter,” formerly of Brighton, Mich., was sentenced by U.S. District Judge Joan A. Lenard of the Southern District of Florida. On Feb. 28, 2013, a jury found Carter guilty of five counts of traveling in foreign commerce from the United States to Haiti for the purpose of engaging in illicit sexual conduct with children and one count of attempting to do so.
“Today’s sentence brings to a close a horrific chapter in the lives of these victims,” said U.S. Attorney Ferrer. “While nothing can ever undo the abuse these victims endured throughout the years, we hope that today’s sentence restores them with some sense of confidence and trust, and satisfaction that justice has been served.”
“For 15 years, Matthew Carter, under the guise of serving as an international humanitarian, sexually abused more than 50 Haitian children,” said Acting Assistant Attorney General Raman. “He held himself out as a savior to vulnerable children in Haiti, but in fact cruelly forced those children to choose between poverty and submitting to repeated sexual abuse. Child sex tourism is a heinous crime, and today's sentence demonstrates our commitment to bringing the weight of justice on anyone who seeks to exploit our most vulnerable citizens, wherever they reside.”
“Crimes against children are some of the most heinous our agency investigates,” said ICE Deputy Director Daniel Ragsdale. “It is even more despicable that Mr. Carter used his position of trust to abuse children who relied on him for care. Today’s sentence should serve as notice to other child predators. We will find you, arrest you and make sure that you are prosecuted to the fullest extent of the law.”
According to court documents and evidence presented at trial, from 1995 to 2011, Carter resided at and operated the Morning Star Center near Port-au-Prince, Haiti, prior to his arrest on May 8, 2011. The Morning Star Center was a residential facility that provided shelter, food, clothing and school tuition to Haitian children. The children who lived at the Morning Star Center were from impoverished families that could not feed, educate or otherwise support their children. The evidence at trial showed that Carter specifically targeted children in need and preyed on their vulnerability. Between 1995 and 2011, Carter frequently traveled between the United States and Haiti in order to raise funds from churches and donors for the continued operation of the center. Carter sexually and physically abused the children in his care and custody at the center during this period of time. According to court documents and evidence presented at trial, Carter used force to get these children to comply with his sexual demands and required the children to participate in sexual acts in order to receive food, remain at the center and/or continue to receive school tuition payments.
At trial, 16 Haitian victims who resided at the Morning Star Center between 1995 and 2011 testified. Additionally, four witnesses testified that they were sexually abused by Carter in London during the 1970s. Carter previously was charged with and acquitted of charges related to the sexual abuse of children in London, Cairo and Winter Haven, Fla.
The case was investigated by HSI Miami, HSI Country Attaché Santo Domingo, Dominican Republic, and the HSI Santo Domingo Transnational Criminal Investigative Unit. Substantial assistance was provided by the U.S. Secret Service Miami field office; Haitian National Police Brigade for the Protection of Minors; Haitian Social Services; Ministry of the Interior for Haiti; Bureau of Diplomatic Security, Regional Security Office for the U.S. Embassy in Port-au-Prince; Consular Section of the U.S. Embassy in Port-au-Prince; London Metropolitan Police Service; FBI’s Washington, Boston and Miami Field Offices; ICE-HSI Attaché’s Offices in London and Cairo; U.S. Coast Guard; and U.S. Citizenship and Immigration Service in Port-au-Prince.
The case was prosecuted by Assistant U.S. Attorney Maria K. Medetis of the Southern District of Florida and Trial Attorney Bonnie L. Kane of the Criminal Division’s Child Exploitation and Obscenity Section.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Melbourne Man Convicted of Firearm and Drug OffensesRead the Press Release
Orlando, Florida - Acting United States Attorney A. Lee Bentley, III announces that a federal jury today found Lander Carlton McLoyd (39, Melbourne) guilty of possession with intent to distribute cocaine base and marijuana, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. McLoyd faces a mandatory minimum sentence of 15 years, up to a maximum penalty of life in federal prison. His sentencing hearing is scheduled for October 2013. McLoyd was indicted on January 30, 2013.
According to evidence presented at trial, a confidential source working at the direction of law enforcement purchased cocaine base from McLoyd's residence in Melbourne, on two separate occasions. A search warrant was executed at the residence on October 12, 2012. During the execution of that search warrant, investigators found, among other things, cocaine base, marijuana, and three loaded firearms. McLoyd has a prior federal felony conviction for conspiracy and possession with intent to distribute cocaine base, as well as prior state felony convictions for vehicular homicide, cocaine possession, and uttering a forged instrument. Due to his prior federal conviction, he is facing enhanced penalties at sentencing.
This case was investigated by the Melbourne Police Department, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
McLaughlin Man Charged with Burglary and AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury.
Lehi James Demarrias, Sr., age 31, was indicted on July 23, 2013, for Burglary, Assault With a Dangerous Weapon, and Assault Resulting in Serious Bodily Injury. Demarrias appeared before U.S. Magistrate Judge William D. Gerdes on July 26, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction of the burglary charge is 25 years of imprisonment. The maximum penalty upon conviction on each of the assault charges is 10 years of imprisonment. All counts include a $250,000 fine, or both; 3 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and Demarrias is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Demarrias was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
McLaughlin Man Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury.
Arnold Schott, age 79, was indicted on July 17, 2013, for Assault By Striking, Beating and Wounding. Schott appeared before U.S. Magistrate Judge William D. Gerdes on July 25, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction of the charge is 6 months imprisonment, a $5,000 fine, or both, up to 5 years of probation, and a $10 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and Schott is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Special Assistant U.S. Attorney Grant Walker is prosecuting the case.
Schott was released on bond. A trial date has not been set.
Massillon Man Accused of Embezzling $442,000 from ClientsRead the Press Release
A criminal information was charging a Massillon man with bank embezzlement and false returns related to a scheme in which he defrauded four clients out of $442,072, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The information alleges that David Lee Cheviron, 61,was a financial consultant at First Merit Bank, Huntington Bank, and JP Morgan Chase Bank between 2006 and 2010, during which time he embezzled the money from the clients.
Cheviron converted the money for his own personal use. Cheviron also failed to report the funds he received from the schemes on his federal tax returns, according to the information.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, his role in the offense, and the characteristics of the violation. In all cases the sentences will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Vasile C. Katsaros, following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service.
An information is only a charge and is not evidence of guilt. The Defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
#####Lyons Man Pleads Guilty to Producing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN – Floyd Andrew Brown, Jr., 35, of Lyons, Michigan
pleaded guilty before the Hon. Ellen Carmody, U.S. Magistrate Judge, to two counts of
producing child pornography, U.S. Attorney Patrick A. Miles, Jr. announced today. Brown faces
a minimum of 15 years and a maximum of 60 years of imprisonment, and he will be required to
serve a term of supervised release after his prison term has been completed. Brown will also be
required to register as a sexual offender.Brown admitted at the plea hearing that he had sexually abused young girls and had
produced child pornography videos and images at his home in Ionia County. He also admitted
that on other occasions, he had used and attempted to use other minor females to create child
pornography. Finally, Brown admitted to possessing child pornography images at various times
in November and December 2012. Brown was ultimately taken into custody in December 2012,
and he remains in custody pending sentencing.This case is part of Project Safe Childhood, a nationwide initiative designed to protect
children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's
offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law
enforcement are working closely together to locate, apprehend, and prosecute individuals who
exploit children. The partners in Project Safe Childhood work to educate local communities
about the dangers of online child exploitation, and to teach children how to protect themselves.
For more information about Project Safe Childhood, please visit the following web site:
www.projectsafechildhood.gov. Individuals with information or concerns about possible child
exploitation should contact local law enforcement officials.The Department of Homeland Security, Homeland Security Investigations (HSI) and the
Michigan State Police (MSP) investigated the case. Assistant U.S. Attorney Sean M. Lewis
prosecuted the case.
END
Lenexa Man Charged with Child ExploitationRead the Press Release
Human Trafficking Rescue Project
Operation Guardian Angel
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lenexa, Kan., man was charged in federal court today with attempting to pay for illicit sex with a 12-year-old child after being caught in an undercover sting operation.
Guardian Angel is an undercover law enforcement operation targeting the demand for child sex trafficking in the Kansas City metro area by targeting the customers of child prostitution and prosecuting the alleged violators under the Trafficking Victims Protection Act.
John J. McCarthy, 24, of Lenexa, was charged in a federal criminal complaint filed in the U.S. District Court in Kansas City, Mo. McCarthy, who remains in custody, is expected to appear in court on Thursday, Aug. 1, 2013.
According to an affidavit filed in support of the federal criminal complaint, McCarthy contacted a person whom he believed to be the mother of two children but who was actually an undercover Kansas City police detective. After initially making contact through a social Web site, McCarthy began communicating by e-mail and texting.
McCarthy told the undercover detective that he would love to teach her two daughters how to satisfy a man, the affidavit says, and that a mom watching and joining in with her daughters is a big fantasy of his. Beginning on July 24, 2013, the undercover detective began exchanging numerous text messages with McCarthy over several days and he allegedly asked if he could meet the mother and her daughters. She responded that she would rather meet him first without the girls.
On July 29, 2013, the undercover detective met McCarthy at a public location. She described her daughters as 16 and 12 years old. McCarthy allegedly said that the 12-year-old was the one that he wanted first, and began to describe the sexual acts he intended to do with her. The undercover detective said that she had to get something in return for all of this and he allegedly agreed to pay $50. McCarthy told her that he would like to do this soon, the affidavit says, maybe as soon as the next day.
McCarthy sent the undercover detective a text message the next day, July 30, 2013, according to the affidavit, saying he was free for the night and did not have to work in the evening. They arranged for a time to meet, and at approximately 6:36 p.m., McCarthy called and said that he was in the area. The undercover detective directed him to an apartment. Once McCarthy entered the apartment, he allegedly showed the undercover detective the lubrication that he brought for use with the 12-year-old. McCarthy gave her $60, the affidavit says. She reiterated to McCarthy the sexual acts – including oral and vaginal sex – that he previously said he intended on performing on and with the 12-year-old, to which he allegedly responded affirmatively.
The undercover detective told McCarthy the girl was in the bedroom and that he could enter. As McCarthy opened the door and walked into the bedroom he was placed under arrest by Kansas City police officers.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the Kansas City, Mo., Police Department in conjunction with the Human Trafficking Rescue Project.Laredo Jury Convicts Three in “Operation El Patron”Read the Press Release
LAREDO, Texas – Three drug and money laundering co-conspirators have been found guilty of charges resulting from a long-term Organized Crime Drug Enforcement Task Force (OCDETF) investigation, United States Attorney Kenneth Magidson announced today. The jury returned its verdicts following a seven-day trial and more than five hours of deliberation.
Enrique Mendez, of Laredo, Carlos Javier Flores Sr. and his son Carlos Javier Flores Jr., both of Zapata, engaged in a conspiracy to distribute bulk quantities of cocaine from Texas to Georgia and returned drug proceeds to Laredo and into Mexico. During the course of the investigation that led the convictions, agents seized more than $7.5 million in drug proceeds and more than 450 kilograms of cocaine. Agents also seized a drug ledger that attributes the movement/distribution of approximately 12,500 kilograms of cocaine and $41. 9 million in drug proceeds by these and other co-conspirators.
The trial began July 22 and finished late yesterday and included more than 20 government witnesses. Mendez was found guilty of drug conspiracy, money laundering conspiracy and four substantive counts of laundering U.S. currency in amounts ranging from $200,468 to $999,465. Flores Sr. and Jr. were both found guilty of drug conspiracy, while Flores Sr. was also found guilty of a substantive count of possession of a controlled substance in excess of five kilograms of cocaine. Mendez and Flores Sr., who each have prior felony drug convictions, are facing a mandatory minimum of 20 years and a maximum of life imprisonment without parole as well as a $20 million fine. Flores Jr. is facing a mandatory minimum punishment of 10 years and up to life as well as a $10 million fine.
To date, 25 other co-conspirators have been convicted and sentenced as part of this investigation. Seven other co-conspirators identified in this investigation are scheduled for sentencing later this year.
The charges and resulting convictions are the result of OCDETF operation dubbed Operation El Patron involving Homeland Security Investigations, Internal Revenue Service – Criminal Investigation and the Drug Enforcement Administration. Agencies who assisted in the arrests and other aspects of the investigation included the Webb County District Attorney’s Office, U.S. Marshals Service, U.S. Border Patrol, Webb County Sheriff’s Office, Laredo Police Department and the Texas Department of Public Safety. Assistant U.S. Attorneys Graciela Rodriguez Lindberg and Sanjeev Bhasker prosecuted the case.
Kevin Michael Cruz Sentenced to More Than Nine Years in Federal Prison in on Methamphetamine and Gun ChargesRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI),announced today that defendant KEVIN MICHAEL CRUZ was sentenced by Chief Judge Frances Tydingco-Gatewood in the United States District Court, to one hundred and eleven (111) months imprisonment for the offenses of Conspiracy to Distribute Methamphetamine Hydrochloride and Use of a Firearm During a Crime of Violence. After defendant serves his term of imprisonment, he will be placed on supervised release for three (3) years for the conspiracy count, followed by five (5) years for the firearm offense. He is also required to perform community service, pay a $200 special assessment fee, and attend a substance abuse program.
On September 4, 2012, local and federal Marshals were searching for fugitive KEVIN MICHAEL CRUZ who was wanted for a warrant of arrest. Marshals discovered CRUZ hiding in a motel room at the Palm Ridge Inn in Barrigada Guam. CRUZ was armed with a .9 millimeter Encom America handgun, nine rounds of ammunition, a .22 caliber Savage shotgun, a M-84 stun grenade, and a detonator. He was also in possession of methamphetamine hydrochloride. CRUZ admitted that he used the firearm, which he referred to as a “machine gun,” to protect his drug distribution business.
U.S. Attorney Limtiaco states “Firearms and drugs is a potentially deadly combination. Armed drug dealers present a huge risk to innocent civilians and law enforcement officers. Those who use firearms to protect their illegal activities must know that they will face long prison sentences.” U.S. Attorney Limtiaco also states “Methamphetamine has been linked to an increase in violent crimes and results in devastating effects to individuals and to the community. Those who engage in the criminal importation, receipt and sale of this illegal drug will be prosecuted and face severe penalties.”
U.S. Attorney Limtiaco noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood (PSN) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in drug distribution, gang involvement and violent crime.
U.S. Attorney Limtiaco commends the investigative efforts of the Marshals with the United States Marshals Service and the Superior Court of Guam, as well as Special Agents Darren Massin and Aaron Joseph with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Justice Department Shuts Down Indiana Tax PreparerRead the Press Release
The Justice Department announced that yesterday, a federal district judge in Indianapolis permanently barred Cynthia Hawk, who operates Gain Tax Services, from preparing federal income tax returns for others. Hawk consented to the entry of this injunction.
The government’s complaint alleged that Hawk prepared at least 1,501 returns from 2009 through 2012, and that returns Hawk prepared claimed refunds at an unusually high percentage, ranging from 96 to 99 percent during these years. The government alleged that Hawk failed to comply with due-diligence requirements imposed by federal law on tax preparers who claim the earned income tax credit (EITC) on customers’ income tax returns. Because Hawk failed to comply with these due-diligence requirements, in 2011 she was penalized by the Internal Revenue Service (IRS) . When the IRS performed a follow-up investigation in 2012, as it routinely does, the complaint alleged that it again found ongoing failures and fraudulent claims by Hawk.
The complaint also alleged that Hawk claimed education credits on her customers’ tax returns, when the customers did not actually have any qualifying education expenses. Hawk also allegedly falsified customers’ income in order to claim the maximum EITC for them.
The complaint alleged that Hawk’s repeated conduct of preparing returns that understated her customers’ liabilities based on bogus credits or fabricated income or deductions was sufficient for the court to prohibit her from preparing federal tax returns.
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.
Related Materials:
United States v. Cynthia E. Hawk
Complaint for Permanent Injunction and Other Equitable Relief (PDF)
Order of Permanent Injunction (PDF)