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18 September 2013
Idaho Man Pleads Guilty to Terrorism and Weapons Offenses in Connection with November 2011 Shooting at the White House-Defendant Arrested Within Days of Attack-Read the Press Release
WASHINGTON - Oscar Ramiro Ortega-Hernandez, a 22-year-old man from Idaho Falls, Idaho, who traveled to the District of Columbia and fired at least eight rounds at the White House in November 2011, pled guilty today in federal court to terrorism and weapons offenses.
Ortega-Hernandez pled guilty in the U.S. District Court for the District of Columbia to one count of injury to a dwelling and placing lives in jeopardy within the territorial jurisdiction of the United States, as well as one count of discharging a firearm during a crime of violence. Additionally, he admitted that the attack was a terrorist act, and therefore, a sentencing enhancement under the United States Sentencing Guidelines is applicable.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Kathy A. Michalko, Special Agent in Charge of the Washington Field Office of the U.S. Secret Service.
As a result of his plea, Ortega-Hernandez will face a mandatory minimum sentence of ten years of incarceration, and a total of 24 to 27 ½ years of imprisonment pursuant to the United States Sentencing Guidelines. The plea agreement also provides that the United States will dismiss the 17 remaining counts charged in the indictment at the time of sentencing. The Honorable Rosemary M. Collyer scheduled sentencing for Jan. 10, 2014.
“Firing an assault rifle at the White House to make a political statement is terrorism, plain and simple,” said U.S. Attorney Machen. “As we have seen this week, gunmen who come to the nation’s capital bent on violence can inflict terrible damage. This act of cowardice put lives at risk. Today’s plea demonstrates that those who come to the District of Columbia, planning to use violence to send a message, should expect to spend decades behind bars.”
“Through the extensive efforts of the FBI's Violent Crimes Task Force and Evidence Response Team, the bullets that Mr. Ortega-Hernandez has admitted to shooting were recovered from the White House,” said Assistant Director in Charge Parlave. “This expert team's examination of impact points allowed for the FBI to identify the trajectory of the shots, which furthered our investigation into Mr. Ortega-Hernandez and held him responsible for this crime of violence.”
“The collaborative effort between the FBI, U.S. Attorney’s Office and U.S. Secret Service helped ensure the successful outcome of this case,” said Special Agent in Charge Michalko. “It is through effective partnerships such as these that we are able to accomplish our shared goal of ensuring the safety and security of the public.”
According to the government’s evidence, the events unfolded like this:
Beginning in 2010, Ortega-Hernandez made repeated statements to many friends and associates in Idaho about his contempt for the federal government, and he espoused numerous theories regarding how the federal government was seeking to control Americans through Global Positioning System chips, fluoride, and aspartame. He also criticized the federal government for the wars in Afghanistan and Iraq, claiming that the United States was “bullying” other countries to obtain oil. He made numerous statements vilifying the President of the United States, calling him “the devil” and “the anti-Christ,” among other things. On numerous occasions, he told friends and associates that “he was on a mission from God to take out Obama.”
On March 19, 2011, Ortega-Hernandez purchased a Romanian Cugir SA semi-automatic (AK-47-style) assault rifle from an individual in Idaho for $550. He also purchased more than 1,200 rounds of ammunition to use with the weapon. In August 2011, Ortega-Hernandez purchased a scope kit on the Internet and asked a friend to install it on the weapon for him. Over the course of six months, Ortega-Hernandez repeatedly practiced firing the weapon at a desolate crater located on land owned by the Bureau of Land Management outside of Idaho Falls, Idaho.
On Oct. 23, 2011, Ortega-Hernandez made two short videos at the home of one of his friends. In the videos, he praised Osama bin Laden for having the courage to stand up to the United States, and called for a revolution against the federal government. Ortega-Hernandez described himself as a “cold-hearted warrior of God” and declared, “it’s time for Armageddon.”
After making the two videos, Ortega-Hernandez departed Idaho Falls and drove more than 2,000 miles, armed with his Romanian Cugir SA semi-automatic assault rifle with the attached scope, and more than 180 rounds of ammunition.
On Nov. 11, 2011, at approximately 8:50 p.m., Ortega-Hernandez drove southbound on 15th Street NW and made a right turn onto Constitution Avenue NW. Shortly after passing the entrance to the Ellipse, he stopped his vehicle in the middle of the road. With the passenger-side window of his car lowered, he pointed his assault rifle out the passenger-side window of the car and aimed directly at the White House. He fired at least eight rounds at the White House.
Following the shooting, Ortega-Hernandez fled the scene, driving erratically and at a high rate of speed westbound on Constitution Avenue. Moments later, he lost control of the vehicle and crashed near the ramp from Constitution Avenue to the Theodore Roosevelt Bridge in front of the United States Institute of Peace. After efforts to restart the vehicle failed, Ortega-Hernandez fled from the vehicle on foot.
Following the crash, law enforcement launched a multi-jurisdictional search for Ortega-Hernandez. On Nov. 14, 2011, he was photographed riding inside an empty hopper car on a cargo train in the area of Shenandoah Junction, W. Va. The train was headed in a northwest direction away from Washington, D.C. The following day, he was identified standing outside a car wash in South Greensburg, Pa., and asking for a ride. A witness drove him to a store in Greensburg, Pa., where he purchased some items. He appeared on the store’s surveillance video. On Nov. 16, 2011, Ortega-Hernandez returned to the hotel in Indiana, Pa., where he had previously stayed with friends. Upon his return, the hotel staff notified the Secret Service, and the Secret Service coordinated his arrest by the Pennsylvania State Police.
The FBI examined the area around the White House and located approximately eight bullet impact points on the south side of the building on or above the second story. Two bullets were recovered from the White House: one from a window frame on the Truman Balcony and one found on the ground east of the South entrance. The FBI determined that both of those bullets were fired from Ortega-Hernandez’s assault rifle. The FBI also recovered a bullet jacket that was found in the window sill of the Truman Balcony, which was also fired from Ortega-Hernandez’s assault rifle.
At the time of the shooting, two U.S. Secret Service officers were stationed on the northeast section of the roof of the White House. One of the bullets fired by Ortega-Hernandez struck the roof of the White House within approximately 20 feet of where the officers were stationed. The officers each reported hearing approximately six shots fired. In addition, another U.S. Secret Service Officer was stationed at the South Portico underneath the Truman balcony at the time of the shooting. Several of the bullets fired by Ortega-Hernandez struck the Truman balcony directly above where this officer was stationed. This officer heard approximately six to eight shots and the sound of what appeared to be debris falling from above. The officer took cover behind the stairwell, drew a firearm, and readied a shotgun.
In announcing the plea, U.S. Attorney Machen, Assistant Director in Charge Parlave and Special Agent in Charge Michalko expressed their appreciation to all those who diligently investigated this case from the FBI’s Washington Field Office, the U.S. Secret Service, and the U.S. Park Police. They also acknowledged the assistance provided by the Pennsylvania State Police; the Arlington County, Va. Police Department; the U.S. Attorney’s Office for the Western District of Pennsylvania; the FBI Laboratory at Quantico, Va.; FBI field offices in Pittsburgh and Salt Lake City, including the Idaho Falls Resident Agency, and Secret Service field offices in Pittsburgh, Salt Lake City, and Boise, Idaho. Additionally they thanked those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Jenifer Rowe and Devron Elliott, Victim/Witness Coordinator Dawn Tolson-Hightower, and Litigation Technology Specialist Leif Hickling.
Finally, they commended the efforts of Special Assistant U.S. Attorney George P. Varghese and Assistant U.S. Attorney Alessio D. Evangelista of the National Security Section of the U.S. Attorney’s Office for the District of Columbia, who are prosecuting the case.
13-320Henry Anthony Combs Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on September 18, 2013, before U.S. District Judge Donald W. Molloy, HENRY ANTHONY COMBS, a 56-year-old resident of Humboldt County, California, was sentenced to a term of:
- Probation: 5 years, with 6 months home arrest and electronic monitoring
- Special Assessment: $100
COMBS was sentenced in connection with his guilty plea to conspiracy to possess with the intent to distribute marijuana.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
From the summer of 2008, until the summer of 2010, Joseph Chartraw organized and profited from a marijuana distribution network across Montana. Chartraw had numerous distributors and drug couriers in Montana. Chartraw's sources of supply were identified by law enforcement as being in California. Chartraw used his cellular telephone to communicate with everyone in his distribution organization - including some of his sources of supply in California.
Chartraw's original connection to a group of marijuana growers and distributors in California was Kirk Felhaber. Felhaber would bring together multiple growers at his home whenever Chartraw or one of his couriers would be arriving in California. Felhaber would have several individuals bring their marijuana to his home for redistribution to Chartraw or one of his couriers. COMBS was one of the sources of supply for Chartraw through Felhaber from the summer of 2008 until approximately the spring of 2009. COMBS knew he was supplying marijuana for resale to Felhaber and received money for each of the transactions. Felhaber was the primary contact for the group and Chartraw until Felhaber and Chartraw had a falling out over a vehicle title.
The evidence would show that COMBS provided at least more than 2.5 kilograms of marijuana but less than 5 kilograms of marijuana to Felhaber for redistribution to Chartraw during the course of his involvement in the conspiracy.
Chartraw and Felhaber pled guilty to federal charges.
The investigation was conducted by the Billings Big Sky Safe Streets Task Force.
Hartford Drug Dealer Sentenced to More Than Five Years in Prison for Illegally Possessing FirearmsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that OBED FRANCO, also known as “Obie,” 23, of Hartford, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 66 months of imprisonment, followed by five years of supervised release, for illegally possessing firearms.
According to court documents and statements made in court, FRANCO was a member of a drug trafficking organization that sold heroin in the Hartford area. One of FRANCO’s heroin customers held a Connecticut pistol permit. On five occasions between February 2011 and May 2011, FRANCO and others drove the drug customer to a federally-licensed firearms dealer in East Hartford and identified a total of eight guns for the customer to purchase. FRANCO and his other co-conspirators, including Wilson Morillo, then provided the customer with money to complete the purchases. After purchasing the firearms and leaving the store, FRANCO and his co-conspirators gave the drug customer heroin and cash in exchange for the firearms.
In May 2011, FRANCO also purchased a firearm from another heroin customer in exchange for cash and heroin.
FRANCO has been detained since his arrest on June 15, 2011, on unrelated state charges. On June 26, 2013, he pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime.
On May 28, 2013, Morillo pleaded guilty to the same charge. He awaits sentencing.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Jonathan S. Freimann and Special Assistant U.S. Attorney Natasha Dye.
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(203) 821-3722 [email protected]H. Ty Warner Charged with Tax Evasion for Allegedly Hiding Funds in Secret Offshore Account with Swiss Bank UBSRead the Press Release
CHICAGO — The creator of Beanie Babies and other plush animal toys was charged today with federal tax evasion for allegedly failing to report income he earned in a secret offshore financial account he held with UBS, a global financial services firm headquartered in Switzerland. The defendant, H. TY WARNER, was charged in a felony information filed this morning in U.S. District Court.
Warner, 69, of west suburban Oak Brook, is the sole owner of TY Inc., a Westmont-based company that designs and sells plush toy animals including Beanie Babies. Warner, who also owns other business interests, will be arraigned in U.S. District Court on a date yet to be determined.
Through his attorney, Warner authorized the government to disclose that he is cooperating with the Internal Revenue Service and will plead guilty to the charge.
“Regardless of wealth, everyone must pay taxes on all of their income, not just the amount they choose to report. The charge alleges that Warner went to great lengths to hide from his accountants and the IRS more than $3.1 million in foreign income generated in a secret Swiss account. Such conduct invites federal prosecution,” said Gary S. Shapiro, United States Attorney for the Northern District of Illinois.
“We encourage taxpayers to think of the serious consequences, including possible criminal penalties, for willfully presenting false information on their federal tax returns. All taxpayers must honor their obligation to report all of their income and pay all of the taxes they owe,” said James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
Warner is the second taxpayer charged in Federal Court in Chicago in connection with an ongoing investigation of U.S. taxpayer clients of Union Bank of Switzerland (UBS) and other overseas banks that hid foreign accounts from the Internal Revenue Service. In February 2009, UBS entered into a deferred prosecution agreement with the United States, admitting that it helped taxpayers hide accounts from the IRS. As part of the agreement, UBS provided the government with the identities of, and account information for, certain customers of UBS’ U.S. cross-border banking business.
According to the charging document, Warner maintained a secret offshore account with UBS starting in 1996. In late 2002, Warner transferred the assets in his UBS account to a second Swiss financial institution, Zürcher Kantonalbank, when the account had a balance of approximately $93,630,083.
In 2002, Warner earned approximately $3,161,788 in gross income through investments held in his UBS account, according to the charge. Warner allegedly committed tax evasion for that year by failing to tell his accountants about that income and by failing to report that income or the existence of the UBS account in his 2002 form 1040 filed with the IRS in October 2003, as well as failing to report that same income on an amended 2002 form 1040 filed in November 2007. The charge states Warner initially failed to pay $1,257,064 in income tax on the unreported income, but his amended 2002 return reduced the amount of additional tax that he failed to pay to $885,300. By omitting his UBS income, Warner falsely reported his total income in 2002 was $49,124,095, according to the charge.
Tax evasion carries a maximum penalty of five years in prison and a $250,000 fine. In addition, a defendant convicted of tax offenses faces mandatory costs of prosecution and remains civilly liable to the government for any and all back taxes, as well as a potential civil fraud penalty of up to 75 percent of the underpayment plus interest. Federal tax law requires U.S. taxpayers pay taxes on all income earned worldwide. Taxpayers must also report foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during the calendar year. A deliberate failure to file a Report of Foreign Bank and Financial Accounts (FBAR) with the IRS can result in a civil penalty of up to 50 percent of the amount in the account at the time of the violation. If convicted, the Court must determine a reasonable sentence to be imposed under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney James Conway.
The public is reminded that the information contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Information
Greece Man Pleads Guilty to Online Enticement of a MinorRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Terrance Junot, III, 37, of Greece, N.Y., pleaded guilty to online enticement of a minor before U.S. District Court Judge Frank P. Geraci. The charge carries a maximum penalty of life in prison with a mandatory minimum period of 10 years in prison, a fine of up to $250,000, or both.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the defendant engaged in a series of sexually explicit online communications with a 13 year old child who was known to him. During those communications, Junot persuaded the child to produce sexually explicit photographs of herself which she then sent to him over the internet. The defendant also sent sexually explicit photos of himself to the child during these chats.
The case came to the attention of law enforcement after the child's mother found naked photos of the defendant on her child's phone. The parent recognized the defendant as someone who was known to the family, and took the phone to the Greece Police who began an investigation. In the course of their investigation, Greece Police executed several search warrants and searched the victim's cell phone. Following their discovery of sexually explicit pictures of the victim, Greece Police contacted the FBI Cyber-Crimes Task Force for assistance.
“Our Office frequently tells parents and guardians to monitor the computer and cell phone usage of their children,” said U.S. Attorney Hochul. “The mother of the victim in this case did just that and now a predator will not be allowed to victimize any other children. I urge all parents to be on alert. If you see something, please say something, and, as in this case, we will do something.”
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 plea is the culmination of an investigation on the part of Officers of the Greece Police Department, under the direction of Chief Todd Baxter, and Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.
Sentencing is set for January 10, 2014 at 3:30 p.m. before Judge Geraci.Garland, Texas, Man Sentenced to 48 Months in Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
DALLAS — Upwardly departing from the U.S. Sentencing Guidelines, U.S. District Judge Jorge A. Solis sentenced James K. Jenkins, 38, most recently of Garland, Texas, to 48 month in federal prison. Jenkins pleaded guilty in March 2013 to one count of failure to register as a sex offender. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Officers with the Garland, Texas, police department arrested Jenkins in October 2012 on a warrant out of DeKalb County, Georgia, for failure to register as a sex offender and a probation violation. Jenkins had been convicted in DeKalb County for statutory rape in 2002 and was required to register as a sex offender for life. After he served the sentence in this case, Jenkins registered as a sex offender, in DeKalb County, in 2006 and 2007. Sometime between September 1, 2012 and October 1, 2012, Jenkins moved to Texas, and failed to register as a sex offender, even though he resided in Texas for more than 10 days. In fact, Jenkins advised that he’d lived in Tennessee, Louisiana and Texas and had failed to register in any of those states.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the Garland Police Department and the U.S. Marshals Service. Assistant U.S. Attorney Camille Sparks prosecuted.
Four Men Charged in Counterfeit Sports Jersey Scheme on Wildwood BoardwalkRead the Press Release
NEWARK, N.J. – Two Atlantic County men were arrested today on charges that they participated in a multi-year conspiracy to traffic in counterfeit merchandise, including professional sports teams’ jerseys, U.S. Attorney Paul J. Fishman announced.
Brett Strothers, 32, of Egg Harbor Township, N.J,, and his brother Evan Strothers, 28, of Mays Landing, N.J., were arrested at their homes this morning by agents of U.S. Immigration and Customs Enforcement, Homeland Security Investigations, on a complaint charging both men with conspiracy to traffic in counterfeit goods. Both men are scheduled to appear before U.S. Magistrate Cathy L. Waldor in Newark federal court today. Also charged in the complaint were Joseph Cuozzo, 44, a United States Citizen residing in Thailand, and Haresh Aildasani, 27, an Indian Citizen residing in the People’s Republic of China (PRC).
According to the Complaint:
From 2010 to 2012, Brett and Evan Strothers purchased large quantities of counterfeit National Basketball Association (NBA) and National Football League (NFL) sports jerseys, which they used as prizes in several different basketball and football tossing amusement park games they operated on the Wildwood and North Wildwood boardwalk. The games enticed customers to pay for the chance to win a purported authentic NBA or NFL jersey by shooting basketballs into a hoop or tossing footballs through a target at various stands.
Brett and Evan Strothers purchased the counterfeit sports jerseys from, among others, Couzzo, who operated as a middleman between the defendants and Aildasani, who manufactured the jerseys in the PRC and sold them to numerous customers.
Between 2010 and 2012, the defendants Brett and Evan Strothers allegedly purchased at least 16,700 counterfeit NBA and NFL jerseys from defendant Cuozzo, who in turn purchased the jerseys from defendant Aildasani and kept a portion of money for himself. The Manufacturer Suggested Retail Price for authentic versions of these jerseys is estimated at approximately $4 million.
The count with which the defendants are charged carries a maximum penalty of 10 years in prison and a fine of up to $2 million, or twice the gross amount of gain or loss sustained by any victim.
U.S. Attorney Fishman credited special agents of HSI, under the direction of Special Agent in Charge Andrew M. McLees in Newark, with the investigation leading to today’s arrests. He also thanked officers of U.S. Customs and Border Protection, under the direction of Director of New York Field Operations Robert E. Perez their role in the case.
The government is represented by Assistant U.S. Attorney Josh Hafetz of the U.S. Attorney’s General Crimes Unit in Newark.
The charges and allegations contained in the Complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Strothers, Brett et al. Complaint
Exhibit 1 PhotoFormer Union President Pleads Guilty to Failure to Maintain RecordsRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Mark Valerio, 57, of Macedon, N.Y., pleaded guilty to violating a provision of the Labor Management Reporting and Disclosure Act before U.S. Magistrate Jonathan W. Feldman. The defendant faces up to one year in prison and a fine of up to $10,000. The charge also carries a thirteen year prohibition from holding a leadership role in a labor organization.
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that between 2003 and 2012, the defendant was President of the International Brotherhood of Electrical Workers (IBEW) Union, Local 249, in Geneva, N.Y. As Local 249 President, Valerio also held a position as an officer on the executive board of IBEW System Council U-7, a labor organization affiliated with four IBEW locals in matters of collective bargaining and contract negotiations.
During this time, the defendant prepared and submitted duplicate claims for reimbursement of travel expenses to both Local 249 and IBEW System Council U-7. Valerio also claimed reimbursement from the unions for instances when he was already being compensated by his employer. The defendant knew that he had an obligation to submit true and accurate documentation regarding his expense records and that he recklessly disregarded that obligation.As a result, Valerio obtained reimbursements from the IBEW in the amount of $39,049 to which he was not entitled. The defendant resigned as the President of Local 249 in 2012.
Sentencing is set for December 2, 2013 at 10 a.m., before Magistrate Feldman.
The plea is the culmination of an investigation on the part of Investigators with the United States Department of Labor, Office of Labor Management Standards, under the direction of Acting District Director Mark Neylon.Former U.S. Army Officer “Hitman” Sentenced for in Murder-for-Hire PlotRead the Press Release
LAREDO, Texas – Kevin Corley, 30, the convicted “hitman” involved in a murder-for-hire plot and drug conspiracy has been ordered to federal prison for 13 years, announced United States Attorney Kenneth Magidson.
Corley, of Columbia, S.C., pleaded guilty last September to conspiracy to commit murder for hire, conspiracy to possess with intent to distribute cocaine and marijuana and for possessing a firearm during in and in relation to a crime of violence. He is the last of seven co-defendants to be sentenced in a conspiracy involving some of the defendants in murder-for-hire and all of them in a drug trafficking conspiracy.
Today, Senior U.S. District Judge George P. Kazen handed Corley 96 months for the conspiracy charges and a consecutive sentence of 60 months for the use of a firearm during the commission of a violent crime for a total of 13 years in federal prison. He was also ordered to pay a $5,000 fine. In pronouncing the sentence, Judge Kazen noted that although Corley became the leader in the overall conspiracy by getting the team together, selling armored vests, purchasing assault rifles and giving them to undercover agents, he ultimately took responsibility by pleading guilty and assisted in the convictions of others as a very effective witness at trial.
Samuel Walker, 29, also a former Army Soldier of Sharon, Miss., and Calvin Epps, 29, of Hopkins, S.C., were convicted following the jury trial in which Corley testified. The remaining four - Marcus Mickle, 21, and Robert Corley, 24, both of Columbia, S.C.; Shavar Davis, 30, of Denver, Colo.; and Mario Corley, 41, of Saginaw, Texas - all pleaded guilty and have been sentenced to terms ranging from 30 months to 15 years in prison for their roles in the overall conspiracy.
The investigation began in January 2011, when Mickle began negotiations with persons whom he thought were members of the Los Zetas Cartel, actually undercover Drug Enforcement Administration (DEA) agents, to purchase marijuana in return for stolen weapons. According to the testimony of DEA agents, the discussions concerned the distribution of marijuana in the Columbia, S.C., area and how Mickle and Epps told undercover agents about a friend in the military who could provide military weapons to them. The agents were later introduced to Kevin Corley who identified himself as an active duty officer in the Army responsible for training soldiers. According to the agents’ testimony, Kevin Corley offered to provide tactical training for cartel members and to purchase weapons for the cartel.
Over the next several months, Kevin Corley continued to communicate with undercover agents regarding the services he could provide the cartel as a result of the training, experience and access to information and equipment items afforded him as an active duty soldier.
On Jan. 7, 2012, Kevin Corley traveled to Laredo and met with undercover agents. During this meeting, he claimed he could raid a ranch located at or near Laredo containing 20 kilograms of cocaine and conduct a contract killing there. Kevin Corley proposed a $50,000 fee for this work but stated he would need to bring his own team. After further negotiation, Kevin Corley stated he would accept a $50,000 fee and five kilograms of cocaine.During March 2012, Kevin Corley allegedly arranged for 300 pounds of marijuana to be delivered to Mario Corley in Charleston, S.C. Kevin Corley also assisted in brokering 500 pounds of marijuana and five kilograms of cocaine for Mickle and Epps and discussed with agents the distribution of these narcotics in South Carolina, Texas and Colorado.
Agents testified that on March 5, 2012, Kevin Corley delivered two AR-15 assault rifles with scopes, an airsoft assault rifle, five allegedly stolen ballistic vests and other miscellaneous equipment to an undercover agent in Colorado Springs, Colo., in exchange for $10,000. At the meeting, Kevin Corley and the undercover agent again discussed the contract killing and the retrieval of the cocaine which was to occur on March 24, 2012. Kevin Corley stated he had purchased a new Ka-Bar knife to carve a “Z” into the victim’s chest and was planning on buying a hatchet to dismember the body. He further told agents he had discussed the plan with Walker, that Walker was going to be a part of the team that would come to Texas to commit the murder for hire and that he and Walker had gone to the rifle range and test-fired Walker’s scoped rifle.
On March 24, 2012, Kevin Corley, Walker and Davis traveled to Laredo and met with undercover agents, at which time they discussed the location of the intended victim, the logistics of performing the contract kill and their respective roles. Walker said he could hit the intended victim from more than two football fields away with his rifle. Immediately thereafter, the three were arrested, during which time a fourth suspect was shot and killed. A subsequent search of the vehicle in which Corley and the other co-conspirators arrived revealed two semi-automatic rifles with scopes, one .300 Caliber Weatherby Magnum bolt-action rifle with a scope and bipod, one hatchet, one Ka-Bar knife, one bag of .223 caliber ammunition and one box of .300 caliber ammunition. During the trial, Kevin Corley testified that the .300 caliber Weatherby Magnum rifle and ammunition belonged to Walker and that Walker was supposed to take the long-distance shot at the intended victim with this weapon.
Meanwhile, also on March 24, 2012, undercover agents met with Epps and Mickle in Columbia, S.C. at a motel parking lot. During this meeting, Epps and Mickle discussed with the undercover agent the pre-arranged purchase of five kilograms of cocaine and 500 pounds of marijuana for which Epps and Mickle were supposed to provide $50,000 as an initial payment. During the meeting, Epps and Mickle were arrested. Epps had a loaded Raven Arms Model MP-25 handgun in his right cargo pants pocket, while Mickle had a loaded Springfield Armory XD-40 handgun in the right side waistband of his pants as well as a loaded spare magazine.
On this same date, Mario Corley, having traveled from Texas to Columbia, S.C., to pick up Robert Corley, proceeded to Summerville, S.C. (near Charleston) to meet with persons who Mario and Robert Corley believed would provide them with 300 pounds of marijuana. Robert Corley admitted to making an agreement with Mario Corley to go to Charleston to pick up “a bunch of weed,” and test the quality of the marijuana, in addition to helping Mario Corley load the bundles of marijuana into Mario Corley’s white van. At the time of his plea, Robert Corley stated he was expected to be paid a pound of marijuana from Mario Corley.
Kevin Corley was permitted to voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by the DEA and the FBI with the assistance of U.S. Army Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorneys Roberto Ramirez and Jody Young.
Former Teacher Sentenced on Heroin Distribution ChargeRead 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
WHEELING, WEST VIRGINIA - A former teacher and basketball coach from Marshall County was sentenced today on heroin distribution charges.
United States Attorney William J. Ihlenfeld, II, announced that AMANDA
ALLISON, age 27, of Cameron, West Virginia, was sentenced to 30 months of imprisonment and 3 years of supervised release as a result of her conviction for “Conspiracy to Distribute Heroin.” ALLISON had previously admitted to conspiring to sell heroin between January and April of 2013.ALLISON was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The case was prosecuted by Assistant United States Attorney Randolph J. Bernard and investigated by the Marshall County Drug Task Force, which consists of officers and agents from the Moundsville Police Department, the Marshall County Sheriff’s Department and the Drug Enforcement Administration.
Former Mingo Pill Mill Office Manager Sentenced to Prison TimeRead the Press Release
CHARLESTON, W.Va. – Myra Sue Miller was sentenced today to six months in federal prison for her role in operating a former Mingo County-based pill mill, U.S. Attorney Booth Goodwin announced. Miller, 50, of South Williamson, Ky., previously pleaded guilty in March to misusing a Drug Enforcement Administration (DEA) registration number that did not belong to her. Miller’s sentence was handed down today by United States District Judge John T. Copenhaver, Jr. in federal court in Charleston.
U.S. Attorney Goodwin said, “Every time we put a pill dealer out of business or shut down a pill mill, it’s a big step toward getting this problem under control.”
In February 2010, Miller used the DEA registration number assigned to former Mingo County doctor William F. Ryckman to illegally distribute the painkiller hydrocodone, as well as the prescription drug alprazolam, also known as “Xanax.” Miller was the office manager at Mountain Medical, formerly located in Williamson, W.Va. The clinic was Dr. Ryckman’s primary medical practice at the time.
Dr. Ryckman, 66, was convicted in March 2012 of conspiracy to misuse a DEA registration number and sentenced to six months in prison followed by one year of supervised release.
During the scheme, on February 17, 2010, Miller faxed several blank “doctor’s lists” from Ryckman’s Williamson office to Dr. Ryckman, who was residing in Pennsylvania. To further the scheme, Ryckman signed and faxed the lists and sent them back to Miller at his office in Mingo County. With Ryckman’s authorization, the lists were improperly used to prescribe painkillers to people who were not evaluated or seen by a physician.
As the office manager, Miller directed individuals under her authority to fill in blank doctor’s lists with information that included patients' names, prescription type, strength, and quantity. The lists were then faxed to local pharmacies in order to be filled and dispensed. Miller also admitted that while Dr. Ryckman was absent from his Williamson office on February 18 and 19, 2010, she accepted cash fees from individuals who arrived at Mountain Medical. She later directed individuals to one of at least two pharmacies located in Mingo County to obtain prescriptions for hydrocodone and Xanax.
At sentencing, the Court ordered Miller to pay a $5,000 fine. Miller was also sentenced to one year of supervised release.
Miller agreed to forfeit her interest in the clinic building and personal assets totaling $475,823.75.
This case was investigated by the Drug Enforcement Administration, the West Virginia State Police, the Department of Health and Human Services – Office of Inspector General, and the FBI. Assistant United States Attorney John Frail handled the prosecution.This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Former Fortune 500 Top Executive of Miami Beach Manufacturing Company Is Sentenced in Multi-Million Dollar Investment SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Claudio Eleazar Osorio, a/k/a “Claudio Osorio Rodriguez,” 54, of Aventura, was sentenced today by U.S. District Court Judge William Dimitrouleas to 150 months imprisonment and three years of supervised release on two counts of conspiracy to commit wire fraud, and 120 months imprisonment and three years of supervised release on one count of conspiracy to commit money laundering. The terms of imprisonment run concurrently. Osorio was also ordered to pay $23,000,000 in restitution to the victims, and to forfeit his interest in the marital home. Osorio had pled guilty earlier this year, in February 2013.
According to documents filed with the court and statements made in court during the plea, Osorio was the owner and majority shareholder of Innovida Holdings, LLC, a Florida limited liability company, located in Miami Beach. Innovida manufactured fiber composite panels for the construction industry for use in residential, commercial, governmental, and other structures without the need for cement, steel or wood. Innovida purported to be a rapidly expanding and financially strong international operation with facilities in the United States, the United Arab Emirates, Germany, Angola, Tanzania, and other countries.
According to statements made in court, between March 2007 and March 2011, Osorio offered and sold shareholder interests and joint-venture partnerships in Innovida to select individuals and groups, raising more than $40,000,000 from approximately ten (10) investors and investment groups in the United States and abroad. Osorio solicited and recruited investors by making materially false representations and concealing and omitting material facts regarding, among other things, the profitability of the company, the rates of return on investment funds, the use of investors’ funds and the existence of a pending lucrative contract with a third-party entity. Osorio received moneys from investors based on these misrepresentations. Osorio used investor monies for his and his co-conspirators’ personal benefit and to maintain and further the fraud scheme.
According to statements made in court, the second conspiracy to commit wire fraud related to a $10,000,000 loan that Osorio and another applied for and obtained a from the Overseas Private Investment Corporation (“OPIC”), a U.S. government agency that promotes U.S. government investments abroad to foster the development and growth of free markets. The purported purpose of the loan was to build a manufacturing facility and 500 homes in Haiti (“the Haiti project”) for displaced families in the aftermath of the January 2010 earthquake. Osorio and others made materially false representations and omissions concerning, among other things, the profitability of Innovida, the purported use of the loan proceeds, an equity contribution to be made by Innovida, and contracts that Innovida purportedly had obtained with third-party vendors. Osorio used the OPIC loan proceeds to repay investors and for his and his co-conspirators’ personal benefit and to further the fraud scheme.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers.
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.
Former Department of Veterans Affairs Official Admits Fraud Taking $1.2 Million in KickbacksRead the Press Release
TRENTON, N.J. – A former Department of Veterans Affairs (VA) employee who worked as a supervisory engineer at the VA’s campus in East Orange, N.J., today admitted accepting more than $1.2 million in kickback payments in connection with VA contracts awarded to companies with which he had relationships, and to engaging in a scheme to defraud the VA by claiming one of those companies was owned by a service-disabled veteran when it was not, New Jersey U.S. Attorney Paul J. Fishman announced.
Jarod Machinga, 43, of Hopewell, N.J., pleaded guilty today to an information charging him with one count of honest services wire fraud, one count of wire fraud and one count of engaging in a monetary transaction in criminally derived property. Machinga entered his guilty plea before U.S. District Judge Mary L. Cooper in Trenton federal court.
“When trusted with the important work of serving and honoring our nation’s veterans, Jarod Machinga took the opportunity to serve himself,” said U.S. Attorney Fishman. “Taking more than $1 million in kickbacks – including money meant for service-disabled veteran-owned businesses – not only violates the law, it violates our sense of decency.”
“Jarod Machinga’s criminal behavior violated the public trust, betrayed the best interests of disabled veteran entrepreneurs and besmirched the reputations of the overwhelming majority of the employees in the Department of Veterans Affairs who are dedicated to serving veterans,” said Department of Veterans Affairs Inspector General George Opfer. “We will spare no effort to protect the interests of veterans and taxpayers in identifying and prosecuting those who seek to criminally enrich themselves by virtue of their employment.”
According to documents filed in this case and statements made in court:
In his position as a supervisory engineer, Machinga had the authority and influence to direct certain VA construction contracts to particular companies. Machinga partnered with a person – identified in the information as “Individual 1” – to set up three companies that could be used to obtain VA work, then directed more than $6 million worth of VA construction projects to those companies. Machinga admitted he accepted approximately $1,277,205 in kickbacks in exchange for his official action and influence between 2007 and July 2012.
Congress has established a program through which certain VA contracts are reserved for small businesses that are owned and controlled by service-disabled veterans. One of Individual 1’s companies entered into such a contract with the VA after Machinga falsely represented to the VA that it was a service-disabled veteran-owned small business – even though Individual 1 was not a veteran. Machinga then used his official position and influence at the VA to award such a contract to Company 1. The company was paid more than $3 million by the VA in connection with the contract.
Machinga also admitted that for many of the projects awarded to Individual 1’s companies, he recruited other contractors to perform the work so the companies were able to keep the money paid to them without having to incur the expense of actually completing the projects.
The two wire fraud counts each carry a maximum potential penalty of 20 years in prison and a $250,000 fine or twice the gross gain or loss from the offense. The monetary transaction count carries a maximum potential penalty of 10 years in prison and a fine equal to the greatest of: $250,000, twice the pecuniary gain or loss or not more than twice the amount of the criminally derived property involved in the transaction. Sentencing is scheduled for Jan. 15, 2014.
U.S. Attorney Fishman praised special agents of the Department of Veterans Affairs, Office of Inspector General, under the direction of Special Agent in Charge Jeffrey Hughes; the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for their work leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division and Peter Gaeta of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit in Newark.
13-380Defense counsel: Fortunato N. Perri Jr., Philadelphia
Machinga Information
Former County Prosecutor Convicted of Oxycodone Distribution Six Others Appear for Hearings in Martinsburg Federal CourtRead 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
MARTINSBURG, WEST VIRGINIA - A former assistant county prosecutor was convicted in federal court for the illegal distribution of painkillers, according to United States Attorney William J. Ihlenfeld, II.
JAMES CASIMIRO, III, age 37, of Ranson, West Virginia, and a former assistant prosecuting attorney in Jefferson County, WV, entered a plea of guilty to “Distribution of Oxycodone” and now faces up to 20 years in prison. CASIMIRO admitted to obtaining the painkillers from a cancer patient and then selling them for profit. The investigation involved the use of a confidential informant who made purchases of oxycodone tablets from CASIMIRO in May and June of 2013, a time period during which he was still employed as a prosecutor.
“Because of the defendant’s occupation we moved quickly to investigate and to prosecute this matter,” said U.S. Attorney Ihlenfeld. “If someone who is sworn to uphold the law is instead breaking the law then we must move swiftly to preserve the integrity of the criminal justice system.”
The CASIMIRO case was investigated by the Federal Bureau of Investigation and the Eastern Panhandle Drug & Violent Crimes Task Force. It was prosecuted by Assistant U.S. Attorney Paul T. Camilletti.
In another matter, Ihlenfeld announced that two Hedgesville residents were convicted for the sale of heroin.
DANIEL ROBERT MYERS, JR., age 35, and JORDAN BROOKE GAMBRELL, age 20, both of Hedgesville, West Virginia, entered pleas of guilty to “Possession with Intent to Distribute Heroin” on November 15, 2012. MYERS, who is in custody, and GAMBRELL, who is free on bond, each face up to 20 years in prison when sentenced.
The MYERS & GAMBRELL cases were prosecuted by Assistant United States Attorney Jarod J. Douglas and investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
BRIAN NICKENS, age 38, of Shenandoah Junction, West Virginia, entered a plea of guilty to “Drug User in Possession of a Firearm” on March 26, 2012. NICKENS, who is in custody pending sentencing faces up to 10 years in prison. This case was investigated by the Jefferson County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and prosecuted by Camilletti.
ERIC SCOTT TAYLOR, age 34, of Gerrardstown, West Virginia, entered a plea of guilty to “Distribution of Marijuana” on July 31, 2013. TAYLOR, who is free on bond pending sentencing, faces up to 5 years in prison. This case was prosecuted by Douglas and investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives.
KEIRA LEE WIDDOWS, age 31, of Falling Waters, West Virginia, and formerly of Hagerstown, Maryland, was sentenced to 15 months in prison and 2 years of supervised release for “False Statement in Acquisition of a Firearm” on January 10, 2012. WIDDOWS, who is free on bond, will self-report to the designated Federal Institution. This case was investigated by the Washington County, Maryland, Sheriff’s Department, the Maryland State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and prosecuted by Camilletti.
JASON SWISHER, age 30, and JENNIFER HILEMAN, age 30, of Elizabethtown, Pennsylvania, were sentenced to 33 months in prison and 3 years of supervised release and 16 months in prison and 3 years of supervised release, respectively, for “Conspiracy to Distribute Heroin” in the Berkeley County, West Virginia, area. SWISHER was remanded to the custody of the United States Marshal pending designation to a Federal institution and HILEMAN will self-report to the designated Federal institution in October. This case was prosecuted by Assistant United States Attorney Robert H. McWilliams, Jr. and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Former Cook County Official Convicted of Steering Four Contracts Under $25,000 in Return for Nearly $35,000 in KickbacksRead the Press Release
CHICAGO ― A federal jury today convicted a former Cook County official of steering four county contracts, each just under $25,000, to four acquaintances and then taking a portion of the contract payments as kickbacks from each of them, totaling $34,700. The defendant, EUGENE MULLINS, who was director of the Cook County Department of Public Affairs and Communications between March 2008 and November 2010, was found guilty by jurors who began deliberating Monday afternoon after a week-long trial in U.S. District Court.
Mullins, 49, of Chicago, a former Chicago police officer, was convicted of three counts of wire fraud and four counts of accepting kickbacks. He was acquitted of one count of wire fraud. He faces a maximum penalty of 20 years in prison on each count of wire fraud and 10 years in prison on each count of accepting a kickback, and a maximum $250,000 fine on each count. U.S. District Judge Amy St. Eve scheduled sentencing for Dec. 19. The judge must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The four individuals who received county contracts and returned a portion of the payments to Mullins were each charged with misprision of a felony for concealing Mullins’ fraud and kickback scheme. Each of them entered into pretrial diversion agreements and were placed on probation, were ordered to pay full restitution to the county, and testified as government witnesses at Mullins’ trial. They are: Gary Render, Michael L. Peery, and Clifford Borner, all of Chicago, and Kenneth Gregory Demos, of Oak Park.
The verdict was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Anita Alvarez, Cook County State’s Attorney; Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Patrick Blanchard, Cook County Inspector General. The case stemmed from a state and federal corruption investigation that resulted recently in the state court conviction of Carla Oglesby, a former Cook County official, who also illegally steered county contracts under $25,000.
Evidence at Mullins’ trial showed that between January 2010 and January 2011, he used his county position to submit and cause others to submit false documents to the county to assist the four vendors in obtaining professional and managerial service contracts and payment from the county. Mullins then solicited the individuals who obtained contracts for payments from the proceeds for his own benefit.
Cook County contracts for professional and managerial services under $25,000 required approval only by the county purchasing agent and did not require approval by the county Board of Commissioners. In 2010, Mullins’ public affairs and communications department, as well as other county departments, had access to federal funds and county money to promote awareness and increase response rates by county residents for the 2010 U.S. Census, to promote awareness and assist residents impacted by floods in 2008, and to promote and increase energy efficiency and conservation.
During 2010, Mullins schemed to fraudulently steer the following contracts: a $24,980 disaster grant contract to Render, who kick-backed $9,000 to Mullins; a $24,985 energy grant contract to Peery, who kick-backed $12,000; a $24,995 census contract to Borner, who kickbacked $5,000; and a $24,997 census contract to Demos, who kick-backed $8,700.
Evidence also showed that Mullins steered an additional census contract for $24,390 to another individual, and then solicited a portion of the proceeds. However, this individual instead returned the uncashed vendor check to the county. In each instance, Mullins told the individuals who received the contracts that he could arrange for a subcontractor to perform some of the work in exchange for a portion of the county payments they received. In fact, the money that Mullins received from the individuals was not used for any subcontracts. Instead, Mullins used it for his own benefit, while Render, Peery, Borner, and Demos performed little or no work for the county.
To conceal the scheme, Mullins advised the contract recipients to falsely deny the circumstances surrounding the contracts if questioned by investigators. For example, he advised Peery not to say anything about paying him a portion of the contract in cash, and advised Borner to claim ownership of the invoice submitted in support of his census contract.
The government was represented by Assistant U.S. Attorneys Lindsay Jenkins and Sarah E. Streicker.
Former Charter School Principal and Former Special Education Teacher Sentenced for Child Pornography ChargesRead the Press Release
ASHEVILLE, N.C. – U.S. District Court Judge Martin Reidinger sentenced today a former charter school principal and a former special education teacher on charges related to child pornography, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Chadwick Hamby, 42, of Hendersonville, N.C., was sentenced to 51 months in prison, to be followed by lifetime of supervised release. He was also ordered to register as a sex offender for a period of 15 years. Deborah Lee Tipton, 45, of Burt, N.C. was sentenced to 216 months in prison and a lifetime of supervised release. She was ordered to register as a sex offenders for a period of 25 years.
Joining U.S. Attorney Tompkins in making today’s announcement is John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
In August 2012, Hamby, a former principal at Mountain Community School, pleaded guilty to one count of receiving child pornography. In September 2012, Tipton, who was a teacher at the same school as Hamby at the time of the offense, pleaded guilty to one count of possession and one count of transportation of child pornography. According to filed court documents and today’s sentencing hearing, in or about September 10, 2011, Tipton produced two sexually explicit videos of a child under the age of 12. Court records indicate that Tipton sent these videos to Hamby via the internet. Court documents show that Hamby admitted to viewing the videos at least once before deleting them.
In handing down Hamby’s sentence, Judge Reidinger noted that the offense is one of lasting damage, and that the crime is all the more serious in light of Hamby being an educator and a principal. In announcing Tipton’s sentence, the Judge said that he had never seen a case like this.
Hamby has been in federal custody in the Western District since August 2012. Tipton has been in custody since April 2012. Each defendant will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The case was investigated by the FBI. The prosecution was handled by Assistant U.S. Attorneys David Thorneloe and Cortney Escaravage of the U.S. Attorney’s Office.
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 U.S. 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.
Former Bank Executive Pleads Guilty in Connection with Accounting Fraud at Olympus CorporationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that CHAN MING FON (“CHAN”), a former bank vice president based in Singapore, pled guilty today in connection with his participation in a scheme to defraud investors and auditors regarding the financial condition of Olympus Corporation (“Olympus”). CHAN, who was arrested in December 2012, pled guilty before U.S. District Judge Laura Taylor Swain, pursuant to a cooperation agreement.
According to the Information to which CHAN pled guilty and other court documents:
Olympus is a major manufacturer of medical devices and cameras. Olympus common stock is listed on the Tokyo Stock Exchange. In addition, Olympus American Depository Receipts are traded in the United States. Olympus owns, both fully and in part, numerous subsidiaries and related companies, located in many countries, including the United States.
From 1995 through 2004, CHAN was employed as an executive at two different international financial institutions (“Bank-1” and “Bank-2”). While employed at Bank-1, CHAN served as the relationship manager for Olympus. While employed at Bank-2, he facilitated a loan for hundreds of millions of dollars to a special purpose entity established by Olympus known as Easterside. Olympus did not disclose to its auditor, investors or shareholders the existence of this loan or that it was collateralized by Olympus’s deposits.
Subsequently, from 2005 through 2010, CHAN participated in a scheme to disguise hundreds of millions of dollars that Olympus purportedly invested in government bonds and other secure investments (the “Investment Portfolio”). He served as the manager of a fund – known as SG Bond – that held the Investment Portfolio and, at the direction of Olympus’s executives, transferred the Investment Portfolio to Easterside, which then liquidated the bonds and used the proceeds, in part, to repay the loan from Bank-2.
As the manager of Olympus’s purported investment, CHAN submitted, and caused to be submitted, false and misleading documents to Olympus’s outside auditor (“Auditor”) regarding the Investment Portfolio. Specifically, CHAN prepared and provided several false and misleading confirmations of the Investment Portfolio’s value. He did not disclose in these confirmations that the Investment Portfolio had been transferred to Easterside, nor did he disclose that the Investment Portfolio had been liquidated. In June 2009, he provided the Auditor with a confirmation of the Investment Portfolio’s net asset value and a list of assets that purportedly constituted the Investment Portfolio. At the direction of a co-conspirator, CHAN forged a signature on the confirmation to make it appear that it had been signed by a bank representative. CHAN submitted these false and misleading documents, including the confirmation with the forged signature, to deceive the Auditor into believing that Olympus’s purported investment in bonds and fixed income securities was safe and secure at SG Bond.
In 2010, Olympus-controlled entities transferred hundreds of millions of dollars to an entity controlled by CHAN. In turn, he used these funds to purchase bonds and other securities that were similar to the assets that originally had constituted the Investment Portfolio. Upon acquiring these bonds and securities, he caused the assets to be transferred to Easterside, which in turn transferred the assets to SG Bond in order to replace the Investment Portfolio that SG Bond had purportedly held for Olympus since 2005.
In consideration for his assistance to Olympus including in this accounting fraud scheme, CHAN received in excess of $10,000,000 from Olympus or entities controlled by Olympus.
CHAN, 50, resides in Singapore and is a citizen of Taiwan. He pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum potential penalty of five years in prison. CHAN is scheduled to be sentenced by Judge Swain on January 10, 2014.
Mr. Bharara praised the Federal Bureau of Investigation for its outstanding work in the investigation. He also thanked the U.S. Securities and Exchange Commission.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Zachary Feingold is in charge of the prosecution.
U.S. v. Chan Ming Fon Information
Former Air Force Official Pleads Guilty to Receiving GratuitiesRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Dennis Charles Toenjes, Sr., 66, has been charged and pled guilty to receiving gratuities in connection with his former role as a contracting official with the United States Air Force. Earlier today, Toenjes pled guilty to the charge in the United States District Court.
Evidence revealed in Court showed that on or about February 3, 2009, Toenjes received and accepted gratuities from Stephen Keith Sweet, an owner of an asbestos abatement company which performed work on Scott Air Force Base. Sweet would not have given such gratuities to Toenjes but for his position as a contracting official with the United States Air Force. Gratuities included Sweet paying for Toenjes’ car repairs and for his home heating and cooling repairs. All payments made by Sweet to Toenjes totaled $9,382.01.
The charge carries maximum penalties of 2 years in prison, a $250,000 fine, and 1 year of supervised release. Sentencing has been set for January 24, 2014, at 11:00 a.m.
The case was investigated by the Internal Revenue Service - Criminal Investigation Division and the United States Air Force Office of Special Investigations. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
Federal Jury Finds Clay County Man Guilty on Federal Child Pornography ChargesRead the Press Release
Jacksonville, FL - Acting U.S. Attorney A. Lee Bentley, III announced today that a federal jury found Melvin Hubert Holmes (52, Clay County) guilty of production and possession of child pornography. Holmes faces not less than 15 years and up to 30 years in prison on the production charge, and up to 10 years in prison on the possession charge. After the return of the jury verdict, Holmes was remanded to the custody of United States Marshals Service pending his sentencing hearing, which is scheduled for January 6, 2014.
According to testimony and evidence presented during trial, from March 10, 2012 through August 19, 2012, Holmes had installed a hidden video spy camera in several areas in a bathroom within his residence. On several occasions, Holmes used the camera to capture pornographic videos and images of a minor child. On August 23, 2012, partially covered holes in a sink vanity and in two walls that had housed the camera were discovered and the Clay County Sheriff's Office was contacted. During the investigation, several items were seized, including a laptop computer belonging to Holmes. A forensic analysis of the computer revealed several dozen images and videos depicting child pornography that were produced by Holmes.
This case was investigated by the Clay County Sheriff's Office and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Federal Jury Convicts Anthony, N.M., Man on Cocaine Trafficking ChargeRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces returned a guilty verdict this morning against Alejandro Lopez, 40, of Anthony, N.M., on a cocaine trafficking charge after a three-day trial. The guilty verdict was announced by Acting U.S. Attorney Steven C. Yarbrough, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Lt. Bobby Holden of the Las Cruces/Doña Ana County Metro Narcotics Agency.
Alejandro Lopez and his brother Eddy Lopez, 37, were arrested on Nov. 15, 2012, on a criminal complaint charging them with trafficking in cocaine. On March 29, 2013, Eddy Lopez entered a guilty plea to a felony information charging him with possession of cocaine with intent to distribute. Alejandro Lopez was indicted on that same charge on June 19, 2013.
Trial against Alejandro Lopez commenced on Sept. 16, 2013 and concluded this morning when the jury returned a verdict of guilty on the sole count of the indictment.
The evidence at trial established that in late Sept. 2012, a confidential informant (CI) working under the supervision of the FBI and the Las Cruces/ Doña Ana County Metro Narcotics Agency had several telephone conversations with Eddy Lopez during which the CI negotiated to facilitate the purchase of a kilogram of cocaine for $22,000 from Eddy Lopez on behalf of a buyer.
On Sept. 27, 2012, by prior arrangement, the CI met Eddy Lopez in a park in Anthony to complete the cocaine deal. Law enforcement officers conducted surveillance while Alejandro Lopez drove up in his truck, with Eddy Lopez as a passenger, and parked next to the CI’s vehicle. They observed Eddy Lopez take a package, which contained 794 grams of cocaine, from Alejandro Lopez’s truck and place it in the back seat of the CI’s vehicle. Eddy Lopez then told the CI that Alejandro Lopez would follow the CI as he delivered the cocaine to the buyer so that Alejandro Lopez could collect the $22,000 payment for the cocaine. After Alejandro Lopez dropped Eddy Lopez off at a nearby residence, he followed the CI’s vehicle until officers executed a traffic stop and arrested Alejandro Lopez on local charges. Shortly thereafter, other officers arrested Eddy Lopez also on local charges.
During the booking process, Alejandro Lopez made a post-arrest statement during which he admitted picking up the cocaine from a location near his brother’s residence and then picking up his brother before driving to the park where they met the CI. He also admitted that, after Eddy Lopez transferred the cocaine from his truck to the CI’s vehicle, he followed the CI for the purpose of collecting the proceeds from the drug deal. Alejandro Lopez acknowledged that he expected to be paid $100 for his participation in the drug deal.
Alejandro Lopez was remanded into federal custody after the jury returned its guilty verdict and he will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Alejandro Lopez faces a prison sentence of not less than five years and not more than 40 years followed by at least four years of supervised release. Because Alejandro Lopez is a resident alien, he will be deported to Mexico after he completes his prison sentence.
Eddy Lopez faces a similar prison sentence when he is sentenced. His sentencing hearing also has not yet been scheduled.
This case was investigated by the Las Cruces office of the FBI and the Las Cruces/Doña Ana County Metro Narcotics Agency. The case is being prosecuted by Assistant U.S. Attorneys Maria Y. Armijo and Edwin Garreth Winstead III of the U.S. Attorney’s Las Cruces Branch Office.
Farrell Man Charged with Robbing Local Convenience StoreRead the Press Release
PITTSBURGH – A Mercer County resident has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearms and robbery laws, United States Attorney David J. Hickton announced today.
The three-count indictment named Joshua Stewart, 20, of Farrell, Pa.
According to the indictment, on Dec. 20, 2011, Stewart, together with another person, robbed the B&M Market, a convenience store located in Farrell. The robbers stole cash and cigarettes from the market. During the robbery, the robbers carried, used and discharged a firearm.
The law provides for a maximum sentence of not less than 10 years and up to life in prison, and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Southwest Mercer County Regional Police, and the Mercer County District Attorney’s Office 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.
Essex County, N.J., Man Sentenced to 10 Years in Prison for Illegal Weapons DealingRead the Press Release
NEWARK, N.J. – An Essex County, N.J., man was sentenced today to 120 months in prison for weapons charges in connection with a year-long investigation by the FBI Safe Streets Task Force that led to the confiscation of 45 guns from the streets of Newark, East Orange and Irvington, U.S. Attorney Paul J. Fishman announced today.
Randy Andrew, 36, of Irvington, N.J., was previously convicted by a federal jury of one count each of trafficking firearms and conspiracy to traffic firearms and three counts of possession of a firearm by a convicted felon. The jury returned a verdict after a one-week trial before U.S. District Judge William Walls in Newark federal court.According to documents filed in this case and the evidence at trial:
Andrew and seven others (all of whom have since pleaded guilty) were arrested in 2011 on charges of trafficking in firearms without a license. The FBI Safe Streets Task Force led an operation – for more than a year – to recover firearms in an effort to stem gun violence and take weapons off the streets of Newark and surrounding areas. Agents directed and supervised a “sting operation” using a confidential informant to purchase firearms from illegal gun brokers and dealers. The operation yielded 45 illicit firearms, including several assault rifles, machine pistols, shotguns and semi-automatic handguns.
Andrew was selling firearms out of a laundromat in Irvington. On five separate occasions between May and July 2010, he met with the informant to discuss the purchase of assault weapons. On May 10 and 19 and June 9, 2010, Andrew sold firearms to the informant. On June 1 and July 12, 2010, he attempted to sell assault weapons to the informant, but his supplier could not provide the guns.
In addition to the prison term, Judge Walls sentenced Andrew to serve two years of supervised release.
U.S. Attorney Fishman credited the FBI special agents and local detectives and investigators from the FBI’s Safe Streets Task Force, which operates under the direction of FBI Special Agent in Charge Aaron T. Ford in Newark, with the investigation. The Safe Streets Task Force comprises the FBI, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the Essex County Corrections Department and the Newark, East Orange and Jersey City Police Departments.
The government is represented by Assistant U.S. Attorneys Adam N. Subervi and Amy D. Luria of the U.S. Attorney’s Office Criminal Division.
13-378Defense counsel: Paul Casteleiro Esq., Hoboken, N.J.
Elmira Man Sentenced to on Gun and Drug ChargesRead the Press Release
ROCHESTER, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Shawn Rickard, 39, of Elmira, N.Y., who was convicted following of conspiracy to manufacture 500 grams or more of methamphetamine and possession of firearms in the furtherance of drug trafficking activities, was sentenced to 97 months in prison, and five years supervised release by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated that Shawn Rickard, together with co-conspirators Chad Speicher and John Barton and others, conspired to manufacture 500 grams or more of a mixture containing methamphetamine in Millport in Schuyler County, N.Y., between 2009 and May, 2011.
On May 18, 2011, members of the New York State Police, Schuyler County Sheriff’s Office, Schuyler County District Attorney’s Office, Village of Watkins Glen Police Department and the Drug Enforcement Administration executed a state court-authorized search warrant at John Barton’s residence based on an ongoing investigation by these agencies. In a shed on Barton’s property, law enforcement officers discovered an active methamphetamine laboratory which was in the process of producing methamphetamine, as well as methamphetamine and powder substances which tested positive for the presence of methamphetamine and pseudoephedrine. In the same shed, law enforcement officers also recovered multiple firearms, one of which was a handgun which officers located in Barton’s backpack, along with methamphetamine and over $8,000 in U.S. Currency. Officers also recovered marijuana from the house located on the property as well.
John Barton was convicted of similar charges following a jury trial in June 2013 and will be sentenced on September 24, 2013. Chad Speicher was convicted in January 2012 and will be sentenced on September 25, 2013.
The sentencing is the culmination of an investigation on the part of the Schuyler County District Attorney’s Office, under the direction of District Attorney Joseph Fazzary, Special Agents of the Drug Enforcement Administration, under the direction of Resident Agent in Charge Brian R. Crowell, New York Field Division, the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Wayne C. Olson, the Schuyler County Sheriff’s Department, under the direction of Sheriff William Yessman, and the Watkins Glen Police Department, under the direction of Chief Thomas R. Struble.Eagle Butte Woman Convicted of Assault by Striking, Beating and WoundingRead the Press Release
United States Attorney Brendan V. Johnson announced that Wicahpi Collins Holy, a/k/a Star Collins, age 20, of Eagle Butte, South Dakota, appeared before U.S. District Magistrate Judge Mark A. Moreno on September 16, 2013, and pled guilty to a Superseding Information that charged her with two counts of Assault by Striking, Beating and Wounding.
A presentence investigation was ordered, and a sentencing date was set for November 12, 2013. Collins was released on bond pending sentencing.
The maximum penalty upon conviction is 6 months in custody, a $5,000 fine, restitution, and a $10 assessment to the Federal Crime Victims Fund for each count.
The charge relates to a November 2012 incident in which Collins, along with her co-defendant, assaulted a man at a house party in Eagle Butte.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.
Detroit Carjacking Ring Dismantled by Conspiracy ConvictionRead the Press Release
Two Detroit men and a Redford Township man were found guilty yesterday by a federal jury in Detroit on 20 counts in a case involving armed carjacking to support a chop shop, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Acting Special Agent in Charge John Robert Shoup, Federal Bureau of Investigation, Chief James Craig, Detroit Police Department, Colonel Kriste Kibbey Etue, Director, Michigan State Police and William Hayes, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
The jury convicted Frank Harper, 29, of Detroit, Phillip Harper, 25, of Detroit and Bernard Edmond, 46, of Redford Township. The three-week trial was conducted before U.S. District Judge George Caram Steeh.The evidence presented at trial established that the defendants conspired with several others to steal high-end vehicles, many by committing armed carjacking, and then to retag the vehicles for sale. Edmond would purchase the stolen vehicles from the Harper brothers and others after the thefts. He would then alter the vehicle identification number of the stolen vehicles to conceal the fact that the vehicles had been stolen. Edmond would also create false documents to file with the Secretary of State, then sell the vehicles to unwitting buyers in Michigan and other states. Edmond created a market for the stolen vehicles by informing the Harpers and others of his desire to buy these stolen vehicles.
The Harper brothers committed several carjackings and other auto thefts. For example, on October 14, 2010, Phillip Harper and others brandished firearms to steal a Cadillac Escalade, a GMC Yukon, a Chyrsler Aspen, and a Mercury Milan from the Elysium Night Club in downtown Detroit. On January 25, 2011, Frank Harper and others carjacked a Mercedes S550 from a person at the intersection of Atwater and Joseph Campau streets in Detroit. On January 31, 2011, the Harper brothers and another used a firearm to carjack three vehicles from a person on Joseph Campau Street in Detroit. On February 22, 2011, the Harper brothers and others carjacked three high-end vehicles from the valet at Opus One restaurant in Detroit. On March 20, 2011, Philip Harper and others carjacked a Lexus 460 near Club Vain in Detroit. Many of these and other vehicles were intended for Bernard Edmund to retag and sell.
Co-defendants Justin Bowman, Stratford Newton, and Darrell Young have each pleaded guilty to their roles in the conspiracy and are awaiting sentencing.
Phillip Harper faces a mandatory minimum sentence of eighty years in federal prison and Frank Harper and Bernard Edmond are facing a mandatory minimum sentence of fifty-five years in federal prison.
A sentencing date will be set by the court.
U.S. Attorney McQuade said, "Armed carjacking poses an unacceptable danger to public safety and creates a climate of fear for residents in our community. Although these convictions bring with them severe sentences, we think they are appropriate for such serious and pervasive crimes. We hope that these convictions will deter others from committing similar crimes that wreak havoc in our neighborhoods."
Acting FBI Special Agent in Charge Shoup said, “This case stands as a superb example of the fine collaborative work being done by the FBI, Homeland Security Investigations, and the Detroit Police Department. FBI thanks the Assistant United States Attorneys who handled this case for the excellent work that they did in bringing justice to those who would prey on our society.”Chief Craig stated, “Thank you to all involved who dismantled this Detroit carjacking ring. This is another opportunity for the Detroit Police Department to work with our partners to help reduce carjacking crimes, which is one of the department’s top priorities.”
The case was investigated by Special Agents of the FBI, officers of the Detroit Police Department, Michigan State Police and Homeland Security Investigations.
Davenport Man Pleads Guilty to Wire Fraud and Money LaunderingRead the Press Release
Davenport, Iowa - On September 17, 2013, Charles Arthur Ruhl, Jr., age 59, of Davenport, Iowa, pled guilty pursuant to a plea agreement to one count of wire fraud and one count of money laundering, announced United States Attorney Nicholas A. Klinefeldt. Ruhl will appear for sentencing at the United States Courthouse in Davenport, Iowa, on a date to be determined. As part of the plea agreement, Ruhl and the government jointly recommended that Ruhl be sentenced to a term of imprisonment somewhere within the range of one day and twenty-four months.
From the end of 2008 through early 2012, Ruhl engaged in a scheme and artifice to defraud, by unlawfully withdrawing funds from several limited liability companies that he managed, including Lincoln Healthcare Building, LLC, Caxton on Bass St., LLC, Biaggi’s West Des Moines, LLC, and Crow Valley Park Venture, LLC. In total Ruhl unlawfully withdrew approximately $1.3 million from these entities’ accounts. Ruhl then spent the money on Ruhl & Ruhl Commercial expenses and personal expenses. Ruhl concealed his fraud by directing his chief financial officers to omit his withdrawals from financial statements provided to the investors or to enter false deposits on the statements to offset his withdrawals. These doctored statements showed large cash balances when in actuality the balances were depleted because of Ruhl’s withdrawals. Ruhl directed Ruhl & Ruhl Commercial property managers to distribute the doctored financial statements to the investors/members of the involved LLCs. Ruhl and his staff created notes payable to document the withdrawals. Some of these notes were not created and/or signed until well after Ruhl had withdrawn the funds documented in the notes. None of the notes payable had been disclosed to the other members of the LLC’s at the time they were created.
On January 15 and January 17, 2011, Ruhl directed an employee of Ruhl & Ruhl commercial to email financial statements to the investors/members of the Lincoln Healthcare LLC. Ruhl knew that the emails contained false financial statements for the Lincoln tax escrow account. The financial statements had been altered at Ruhl’s direction to conceal his withdrawals of $75,000 from the account over the time period reflected in the statements. The statements also misrepresented and inflated the ending balance in the tax escrow account to conceal Ruhl’s withdrawals. Ruhl directed the transmittal of the altered statements via interstate wire facilities in furtherance of his scheme to defraud and with the intent to defraud.
Ruhl engaged in multiple financial transactions involving the proceeds of his wire fraud scheme. As part of the wire fraud scheme, on or about August 3, 2010, Ruhl directed Ruhl & Ruhl Commercial employees to issue a check drawn on the Lincoln Healthcare tax escrow account at Wells Fargo bank, made out to Ruhl personally for $47,000. Ruhl deposited the check or caused the deposit of the check into his personal account at U.S. Bank. Ruhl deposited the check or caused the deposit of the check with the intent to defraud and in furtherance of his wire fraud scheme to defraud the members/investors of Lincoln Healthcare LLC.
Ruhl’s personal account balance was approximately $350 as of August 3, 2010, the date of the $47,000 deposit. Ruhl deposited the $47,000 check for the purpose of paying property taxes on a personal vacation home in Gogebic County, Michigan. On August 4, 2010, a check written by Ruhl to the Gogebic County treasurer was processed in the amount of $46,735.10. The check would not have cleared if it were not for Ruhl’s deposit of Lincoln funds into his account on August 3, 2010. Ruhl engaged in the payment of his Michigan property taxes via check knowing that the transaction involved the proceeds of a criminal offense, wire fraud. Since the financial transaction involved property of a value greater than $10,000 derived from wire fraud, the financial transaction violated Section 1957 of Title 18 of the United States Code.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation, and the case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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DOJ and the Eastern and Western Districts of Michigan U.S. Attorneys Respond to New Michigan Limited English Proficiency Court RuleRead the Press Release
The letter addressed to the Michigan Supreme Court is attached below.
2013_0917_AAG_LetterMi_CourtRule111
Corrupt Border Patrol Agent Sentenced to Five Years in PrisonRead the Press Release
PHOENIX – On Sept. 16, 2013, Border Patrol Agent Aaron Anaya, 26, of Yuma, Ariz., was sentenced by U.S. District Court Judge Roslyn O. Silverto 60 months in prison. Anaya pleaded guilty to possession of a firearm in furtherance of a drug trafficking offense on April 10, 2013.
“Stopping employee corruption is the OIG's highest priority,” said Paul Leonard, Special Agent in Charge of the Department of Homeland Security, Office of the Inspector General. “We have zero tolerance for those who violate their oath of office and the American public's trust.”
Douglas G. Price, FBI Special Agent in Charge, Phoenix Division, stated, “Whenever a law enforcement officer engages in illegal activity it erodes the public trust. The actions of a few tarnish the badge of those who protect us each day from harm’s way. Corruption by public officials at all levels is a top priority of the FBI and we remain committed to holding corrupt law enforcement officers accountable for their illegal actions.”
On the evening of Dec. 2, 2012, Anaya was driving a fully marked U.S. Border Patrol vehicle and was on duty in his capacity as a Border Patrol Agent patrolling the U.S. international boundary with Mexico. Anaya stopped along the fence line, exited his USBP vehicle and assisted three individuals on the Mexican side of the border in bringing large bales of marijuana over the fence and into the United States. A total of six bales were placed in the vehicle with a combined weight of 146.9 pounds.
That same evening, Anaya’s vehicle, with the marijuana bales inside, was stopped by law enforcement and Anaya was arrested. At the time of his arrest, Anaya was wearing a USBP- issued uniform and had his service-issued firearm secured in his holster. A USBP-owned automatic rifle was in the front passenger compartment of Anaya=s USBP vehicle as well. Anaya admitted at his change of plea proceeding that he would have utilized one or both of the firearms, if necessary, to protect himself and the marijuana from rival drug traffickers if rival drug traffickers had sought to steal the marijuana before he delivered it to its next destination.
The investigation in this case was conducted by the U.S. Department of Homeland Security, Office of the Inspector General, and the Federal Bureau of Investigation. The prosecution was handled by Howard D. Sukenic and Christina W. Covault, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-12-2056-PHX-ROS
RELEASE NUMBER: 2013-074_AnayaFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Contractor Admits Paying Bribe to Get Federal ContractsRead the Press Release
CAMDEN, N.J. – A principal of a Pennsylvania construction company pleaded guilty today to paying bribes to the representative of a general contractor to secure contracts for federally subsidized construction projects in New Jersey and Pennsylvania, U.S. Attorney Paul J. Fishman announced today.
Alex Rabinovich, 57, of Richboro, Pa., pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to Count Four of an eight-count indictment, which charged a conspiracy to make payoffs to a contractor’s representative for receiving favorable treatment when bidding on federal construction projects.
According documents filed in this case and statements made in court:
The defendant and his conspirators were charged with paying cash to a prime contractor’s representative to improperly obtain subcontracts on federally funded construction projects. Between November 2009 and January 2013, Rabinovich and other conspirators paid a Philadelphia contractor’s representative to get “last looks” at other competitors’ bids. This allowed Sands Mechanical of Bristol, Pa., to successfully underbid other subcontractors. A total of $46,200 in bribes/kickbacks was owed for 10 subcontracts awarded to Sands Mechanical. By the summer of 2012, approximately $15,000 was still outstanding for the last two contracts. On two occasions, in November and December 2012, Rabinovich was caught on videotape giving a total of $4,156 in cash to the contractor’s representative to pay down the amounts still due and owing.
Conspiracy to bribe a prime contractor is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 8, 2014.
Seven other defendants have previously pleaded guilty to various charges in the indictment ranging from collecting kickbacks, arson and aggravated assault.
Fishman credited special agents of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent-in-Charge Cheryl Garcia; the Department of Labor-Wage and Hour Division, under the direction of George Ference, regional administrator; Naval Criminal Investigative Service, under the direction of Assistant Special Agent in Charge Jeremy Gauthier, Northeast field office; and the Air Force Office of Special Investigations, under the direction of Special Agent Seth Neville, Detachment Commander, Joint Base McGuire-Dix-Lakehurst with the investigation leading to today’s guilty plea.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
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Defense counsel: Lawrence Krasner Esq., Philadelphia
Rabinovich Indictment
Commercial Fisherman Charged with Witness Tampering Related to an Investigation into the Illegal Harvesting of Striped BassRead the Press Release
Michael D. Hayden Jr., 41, of Tilghman’s Island, Md., was arrested yesterday on charges of witness tampering and retaliation in connection with an investigation of felony Lacey Act violations related to the illegal harvesting of striped bass from the Chesapeake Bay.The charges were announced by U.S. Attorney for the District of Maryland Rod J. Rosenstein; Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division; Regional Special Agent in Charge Honora Gordon of the U.S. Fish and Wildlife Service, Office of Law Enforcement; and Joseph P. Gill, Secretary of the Maryland Department of Natural Resources.
According to the affidavit filed in support of the criminal complaint, Hayden is a commercial fisherman licensed in the state of Maryland and operates commercial fishing vessels on the Chesapeake Bay. During an investigation of the illegal harvesting of striped bass from the Chesapeake Bay, agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement and the Maryland Natural Resources Police learned that Hayden allegedly attempted to manipulate some witnesses’ testimony while trying to prevent the testimony of others. The criminal complaint alleges that in at least one incident, Hayden threatened to retaliate against a potential witness he believed to be cooperating with investigators.
If convicted, Hayden faces a maximum sentence of 20 years in prison on each of four counts of witness tampering and witness retaliation. Hayden is expected to have an initial appearance in U.S. District Court in Baltimore today.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
U.S. Attorney Rosenstein and Acting Assistant Attorney General Dreher thanked the Maryland Department of Natural Resources Police and the United States Fish and Wildlife Service for their work in the investigation and the United States Marshals Service for executing the arrest. The case is being jointly prosecuted by the U.S. Attorney’s Office for the District of Maryland and the Environmental Crimes Section of the United States Department of Justice.
Commercial Fisherman Charged with Witness Tampering Related to an Investigation into the Illegal Harvesting of Striped BassRead the Press Release
Baltimore, Maryland - Michael D. Hayden, Jr., age 41, of Tilghman Island, Maryland, was arrested yesterday on charges of witness tampering and retaliation in connection with an investigation of felony Lacey Act violations related to the illegal harvesting of striped bass from the Chesapeake Bay.The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division; Regional Special Agent in Charge Honora Gordon of the U.S. Fish and Wildlife Service, Office of Law Enforcement; and Joseph P. Gill, Secretary of the Maryland Department of Natural Resources.
“Stealing striped bass and intimidating witnesses are crimes against our natural resources and against the citizens of Maryland,” said Department of Natural Resources Secretary Joseph P. Gill. “We are grateful for the partnership of law enforcement agencies and we thank our residents for coming forward and providing information to help us protect the public trust.”
According to the affidavit filed in support of the criminal complaint, Hayden is a commercial fisherman, licensed in the state of Maryland and operates commercial fishing vessels on the Chesapeake Bay. During an investigation of the illegal harvesting of striped bass from the Chesapeake Bay, agents of the U.S. Fish and Wildlife Service, Office of Law Enforcement, and the Maryland Natural Resources Police learned that Hayden allegedly attempted to manipulate some witnesses’ testimony while trying to prevent the testimony of others. The criminal complaint alleges that in at least one incident, Hayden threatened to retaliate against a potential witness he believed to be cooperating with investigators.
If convicted, Hayden faces a maximum sentence of 20 years in prison on each of four counts of witness tampering and witness retaliation. Hayden is scheduled to have an initial appearance in U.S. District Court in Baltimore today at 3:00 p.m.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
Mr. Rosenstein and Mr. Dreher thanked the Maryland Department of Natural Resources Police and the United States Fish and Wildlife Service for their work in the investigation and the United States Marshals Service for executing the arrest warrant. The case is being jointly prosecuted by the U.S. Attorney’s Office for the District of Maryland and the Environmental Crimes Section of the United States Department of Justice.
Civilian Government Worker Admits to Receiving Pay for Hours He Did Not WorkRead the Press Release
“Cautionary Tale for Government Employees Who Work at Home”
Greenbelt, Maryland – Jack Raymond Kimble, Jr., age 40, of Sykesville, Maryland pleaded guilty today to using false documents in a matter of the U.S. government.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Michael T. Monroe of the Naval Criminal Investigative Service (NCIS), Washington Field Office.“Supervisors who are obligated to certify electronic timesheets of subordinates who work outside the office often trust the employees to record the time spent doing their jobs,” said U.S. Attorney Rod J. Rosenstein. “This case is a cautionary tale for government employees who work at home and are trusted to self-report their working hours.”
According to his plea agreement, from 2009 to February 2012, Kimble worked as a civilian employee for the U.S. Navy in the Continuity of Operations Program (COOP) at the Office of Naval Intelligence (ONI) in Suitland, Maryland. Kimble oversaw and directed the ONI COOP and Disaster Recovery Plans. He assisted the ONI director and deputy with planning and implementing new technologies that affected ONI commands.Kimble regularly did not come in to his office in Suitland on Mondays and Fridays. His supervisors often did not know where Kimble was. They directed Kimble to use the Navy’s web-based time and attendance system to calculate leave balances accurately. Kimble often called or emailed coworkers and told them he would not be at work, but failed to enter that information into the time and attendance system.
In the spring of 2011, the NCIS began investigating Kimble’s work hours and requested documentation of his working hours. In April 2011, Kimble gave false documents to investigators which claimed that: he personally conducted two tests of communication systems when in fact the tests were done by another individual; and falsified the minutes of three meetings reflecting his attendance when in fact he was not present at the meetings.
Matching up the times that Kimble’s whereabouts were unknown, plus reimbursements for government travel when Kimble did not show up when he was supposed to be working off-site, from the beginning of 2009 to February 2012, Kimble was paid $52,822.09 to which he was not entitled.
Kimble faces a maximum sentence of five years in prison and a fine of $250,000. Kimble has agreed to pay restitution of $52,822.09. Chief U.S. District Judge Deborah K. Chasanow scheduled sentencing for January 6, 2014 at 3:00 p.m.
United States Attorney Rod J. Rosenstein praised the NCIS for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Hollis Raphael Weisman and Special Assistant U.S. Attorney Molly Thebes, who are prosecuting the case.Cahokia Woman Indicted for Stealing Funds from Department of Veterans AffairsRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Mary Lee Owens, 53, of Cahokia, was indicted by the federal grand jury at the East St. Louis federal courthouse on charges that she stole pension benefits from the United States Department of Veterans Affairs.
The indictment alleges that from November 2004 through April 2013, Owens fraudulently obtained monies which were in excess of $1,000.00, belonging to the United States Department of Veterans Affairs, an agency of the United States, by concealing her employment status in order to receive unemployment benefits. The charge carries a maximum penalty of 10 years in prison, a $250,000 fine, and up to 3 years of supervised release.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
The case was investigated by agents of the Department of Veterans Affairs, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan.
Branford Man Admits Defrauding Investors Out of More Than $2 MillionRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JUAN JOSE ALVAREZ DE LUGO AZPURUA, 53, of Branford, waived his right to indictment and pleaded guilty today before Senior U.S. District Judge Warren W. Eginton in Bridgeport to one count of wire fraud stemming from his operation of a real estate investment scheme that defrauded individuals out of more than $2 million.
According to court documents and statements made in court, ALVAREZ DE LUGO held himself out as the president of multiple successful businesses specializing in real estate development programs. ALVAREZ DE LUGO represented to victim investors that his business was acquiring houses from the City of New Haven and from local banks, which houses would be remodeled and sold, and that invested funds would be used for this project. At times, ALVAREZ DE LUGO represented to victim investors that he was working jointly with New Haven on the Livable City Initiative, and he stated that the remodeled homes would be used and occupied by low income families that secured financing from a local bank and State of Connecticut agencies. ALVAREZ DE LUGO also told investors that he was developing a senior housing facility in New Haven. ALVAREZ DE LUGO provided investors with Promissory Notes and other documentation that promised to pay investors interest of 20 percent per year, and a full return of principal in one year.
In pleading guilty, ALVAREZ DE LUGO admitted that the representations he made to victims were materially false, and that he did not invest his victims’ money as promised. He did not own and develop the large number of properties he represented to investors, and he had no relationship with the City of New Haven or the State of Connecticut. ALVAREZ DE LUGO spent investment money on his own personal expenses, and enriched himself and his relatives.
Between approximately 2005 and 2010, ALVAREZ DE LUGO defrauded more than 10 victims out of least $2 million.
ALVAREZ DE LUGO’s three companies, Arquin Decoraciones LLC, Arquin Development LLC, and Juko Investments, LLC, and the investment instruments he provided, were never registered with the Securities and Exchange Commission or Connecticut Department of Banking.
Judge Eginton has scheduled sentencing for December 11, 2013, at which time ALVAREZ DE LUGO faces a maximum term of imprisonment of 20 years.
ALVAREZ DE LUGO has been detained since January 18, 2013, when he was arrested on a federal criminal complaint.
This matter is being investigated by the Federal Bureau of Investigation with the assistance of the State of Connecticut Department of Banking. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
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(203) 821-3722 [email protected]Beaver County Man Conspired to Distribute “Designer” DrugsRead the Press Release
PITTSBURGH- A Beaver County man pleaded guilty in federal court to charges of violating various narcotic laws, United States Attorney David J. Hickton announced today.
Ryan John Konarski, 26, formerly of New Brighton, PA pleaded guilty to three counts before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that from November 2010 to March 12, 2011, Konarski conspired with others to possess with intent to distribute the controlled substance analogue 3,4 methylenedioxymethcathinone, also commonly known as methylone,"bath salts" or "Molly." The government alleged that Konarski and Michael Stokes maintained a drug involved premises for purposes of distributing and using the analogue, while Stokes imported "Molly" into the United States from China.
Since drug suppliers have tried to avoid prosecution in the past by making minor changes in the chemical structures of controlled substances, Congress created the Controlled Substance Analogue Enforcement Act of 1986. This Act makes these chemically-altered "designer" drugs illegal if they are intended for human consumption and resemble a controlled substance in molecular structure as well as actual or purported physiological effects.
Judge Fischer scheduled sentencing for Jan. 16, 2014 at 9:00 AM. The law provides for a total sentence of 60 years in prison, a fine of $2,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the New Brighton Police Department conducted the investigation that led to the prosecution of Konarski.
Atlantic City Man Admits Conspiring with Alleged Members of Organized Crime Family and Others in Fraud SchemeRead the Press Release
CAMDEN, N.J. – An Atlantic City, N.J., man admitted he conspired to defraud FirstPlus Financial Group Inc. (FPFG), a Texas-based financial services company allegedly targeted for extortionate takeover and looting by a group led by alleged Lucchese organized crime family member Nicodemo S. Scarfo, U.S. Attorney Paul J. Fishman announced.
John Parisi, 52, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to a superseding information charging him with conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court: Parisi and 12 others – including his cousin, Nicodemo S. Scarfo, an alleged member of the Lucchese La Cosa Nostra (LCN) crime family, and Salvatore Pelullo, an alleged associate of the Lucchese and Philadelphia LCN families – were variously charged in a November 2011 indictment with a racketeering conspiracy, including acts of securities fraud, wire fraud, mail fraud, bank fraud, extortion, interstate travel in aid of racketeering, money laundering and obstruction of justice. The indictment charged that FPFG was targeted for extortionate takeover and looting by a group of the conspirators. A substantial part of the enterprise’s activities occurred in New Jersey, including communications and the transfer of money into and out of the state. John Parisi admitted that he joined the conspiracy in April 2007.
Parisi managed a family trust and a limited liability company on behalf of Scarfo as part of the scheme to defraud FPFG. Parisi said Scarfo, his cousin, directed Parisi in the use of various bank accounts through which Scarfo received hundreds of thousands of dollars between July 2007 and April 2008 as part of the scheme. As alleged in the indictment, the money involved proceeds of the fraud that Scarfo allegedly received as part of a fraudulent “consulting” agreement between his shell company, Learned Associates, and one controlled by Pelullo. The money also involved proceeds received from the fraudulent sale of Scarfo and Pelullo’s worthless companies to FPFG in 2007. The receipt of the fraudulent proceeds often occurred in the form of wire transfers from accounts in Pennsylvania to accounts in New Jersey.
Parisi also said that beginning in February 2008 he assisted Scarfo and his then-fiancée, Lisa Marie Scarfo, obtain a mortgage for a $715,000 house in Egg Harbor Township, N.J., that the Scarfos intended to purchase. Lisa Marie Scarfo pleaded guilty on Sept. 17, 2013, to a conspiracy to make a false mortgage loan application in connection with the purchase of the Egg Harbor Township house.
Scarfo, Pelullo, and six other defendants charged in November 2011 – including attorneys William Maxwell, Cory Leshner, David Adler, Gary McCarthy, and Donald Manno, as well as John Maxwell – are scheduled for trial beginning Oct. 28, 2013. Todd Stark, also charged in the indictment, previously pleaded guilty to providing ammunition to Scarfo and Pelullo, convicted felons.
The conspiracy count to which Parisi pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 17, 2014.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, New York Region; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Thomas J. Cannon in Newark. He also thanked the FBI under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia for its vital assistance and the U.S. Securities and Exchange Commission for its role.
The government is represented by Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener, of the New Jersey U.S. Attorney’s Office Organized Crime/Gangs Unit and Criminal Division in Camden, and Trial Attorney Adam Small of the Organized Crime and Gang Section of the Justice Department’s Criminal Division.
With respect to the defendants awaiting trial, the charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
13-381Defense counsel: Lisa Evans Lewis Esq., Camden
Parisi, John Superseding Information
Area Agencies Will Share $1 Million Grant to Combat Human TraffickingRead the Press Release
St. Louis, MO – The Saint Louis County Police Department and St. Charles County Sheriff’s Department will share the proceeds of a $1 million U.S. Department of Justice grant with three local social service providers to serve victims and enhance the prosecution of human trafficking crimes in the Eastern District of Missouri. These two law enforcement agencies are members of the U.S Attorney’s Office Human Trafficking Task Force in the Eastern District of Missouri. The Task Force also includes local civilian social service partners, known as the RESTeam (Rescue Service Team).
The Saint Louis-based International Institute, Legal Services of Eastern Missouri and the YWCA Sexual Assault Center are the three RESTeam members who joined forces with the Saint Louis County Police Department and St. Charles County Sheriff’s Department to apply for this competitive award, which was sponsored by the DOJ Office of Victims of Crime and the Bureau of Justice Assistance. The funds will be distributed over two years.
The 2013 grant, which is called the Enhanced Collaborative Model to Combat Human Trafficking, was established in 2010 and was awarded this year to only six applicant groups across the United States. This year is the first time that recipients from the Eastern District of Missouri have been chosen to receive the grant.“With these funds, we will be able to serve up to 150 victims of human trafficking, whether they are victims of sex or labor trafficking and whether they are U.S. citizens or foreign-born. We look forward to collaborating with our law enforcement partners to more effectively serve victims of these crimes and support prosecution of the traffickers,” said Suzanne LeLaurin, Senior Vice-President for Individuals and Families,International Institute of St. Louis.
“The St. Louis County Police Department along with the St. Charles County Sheriff's Department have been battling the issues of human trafficking in the St. Louis County/ St. Charles County area for several years and have been successful in rescuing adult and child victims of trafficking,” said Sergeant Adam Kavanaugh, Deputy Commander Missouri Internet Crimes Against Children Task Force. Kavanaugh added that these funds will be used to add local police personnel and more training for local law enforcement to better identify the indicators of human trafficking in our area.
Lieutenant Chris Mateja of the St. Charles County Sheriff's Department said, “The St. Louis County Police Department and St. Charles County Sheriff's Department will work closely with our federal partners to insure that traffickers do not find a safe haven in the Eastern District of Missouri.”
17 September 2013
Youngstown Man Faces Heroin Distribution ChargeRead the Press Release
A Youngstown man was indicted today on charges of possession with intent to distribute heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
On Aug. 17, 2013, Santos R. Rivera, age 47, possessed more than 100 grams of heroin, which amount is indicative of heroin trafficking, according to the indictment.
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 violations. In all cases, the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration and the Ohio Highway State Patrol. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
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.
Worcester Man Sentenced for Solicitation to Kidnap A ChildDungeon Discussed in Online Chats Discovered in Defendant’s BasementRead the Press Release
BOSTON – Geoffrey Portway, 40, a citizen of the United Kingdom and most recently of Worcester, Mass., was sentenced today in U.S. District Court in Worcester for solicitation to commit a crime of violence (kidnaping of a child), distribution and possession of child pornography.
In accordance with a plea agreement signed in May 2013, Portway was sentenced by U.S. District Judge Timothy S. Hillman to 320 months in prison and a lifetime of supervised release. He was also ordered to pay $3,000 in restitution to each of the five victims identified. Additionally, Portway faces deportation to the United Kingdom following release from prison.
“The facts of this case are disturbing and alarming. I applaud our law enforcement partners for aggressively tracking down the defendant and others that share his perverse desires,” said United States Attorney Carmen M. Ortiz. “The sentence Mr. Portway received today sends the message that the Department of Justice will ardently pursue those who exploit children, the most vulnerable, innocent and impressionable population of our country. Thanks to the dedication and coordination of local, state and federal law enforcement, there is not a place in the United States, or on the Internet, where these predators can hide.”
“Mr. Portway made his intentions explicitly clear in online conversations with depraved likeminded individuals. The sophisticated child torture chamber he built in his basement also clearly demonstrated his strong desires to ensnare a child victim,” said Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston. “There is no doubt in my mind that given the right set of circumstances, Mr. Portway would have acted on those perverse urges. Fortunately, as a result of today’s significant sentence, he will never have an opportunity to pursue his sordid desires. I commend the exceptional work of the HSI special agents, federal prosecutors and the many other law enforcement partners who contributed to Operation Holitna’s overwhelming success in rescuing some 167 child victims and the arrest of 54 predators worldwide. ”Portway engaged in numerous chats with many individuals about a mutual interest in abducting, raping, murdering, and eating children. Many of these conversations were accompanied by the trading of child pornography and other images of children relevant to these interests. These chats also included images of different real children, accompanied by discussions of desires to sexual abuse and murder and cannibalize those children know to those chatting.
Portway solicited several people for their help in abducting a child, predominately from Michael Arnett of Kansas. At least as early as 2010, Portway utilized Skype and other programs to communicate with Arnett, trading child pornography and images of injured, mutilated and deceased children while chatting about the sexual abuse, rape, abduction, murder, and cannibalism of children. Over months, Portway repeatedly solicited Arnett to kidnap a child for him, with the intent that Portway would ultimately rape, kill and eat that child. These solicitations for help abducting a child included discussing real children, by name and photo, which Arnett claimed to know and have access. In the chats, Portway and Arnett discuss different ways to kidnap children and the age range that Portway prefers. During the time that Portway was soliciting Arnett, he had been told that Arnett had helped others with such requests before and that he had experience with the abduction and sexual abuse of children. Arnett has since pleaded guilty in Kansas to the sexual exploitation of a child for the purposes of producing child pornography.
On July 27, 2012, federal agents along with state and local police, executed a federal search warrant at Portway’s Worcester home. Various computers and digital devices containing Portway’s child pornography collection were seized, in addition to the computer he used to trade child photography and attempt to plan the abduction of a child.
During the execution of the search warrant, agents also discovered a locked door in the basement of the residence. Inside the door was a sally port that led to a second door (with a keyed lock). Inside the second door was a dungeon, which was lined with acoustical sound-deadening material and contained a chair, television, and what appeared to be cable access to the internet. Also located in this room were a child-sized homemade coffin (with large speakers covered in wire mesh at one end) with exterior locking devices, a steel cage (approximately 3' wide, 2' high and 4' long) with multiple locking devices, and a steel table top (with steel rings at 6 points, presumably for restraints). Outside these rooms were a cabinet freezer, an upright freezer, disposable scalpels, butchering kits, and castration tools. This dungeon was described in detail by Portway in recovered chats as a place he intended to use to keep kidnaped children while he sexually abused them and as a place to eventually murder and cannibalize the children.A forensic examination of the computers uncovered evidence of over 4,500 trades of child pornography between Portway and others. Many of these trades involved Portway distributing child pornography to others based on their stated specific preferences, including images and videos appearing to depict dead children and the cannibalism of children.
U.S. Attorney Ortiz; SAC Foucart; Worcester County District Attorney Joseph Early; Colonel Timothy Alben, Superintendent of the Massachusetts State Police; and Chief Gary J. Gemme of the Worcester Police Department made the announcement today. The case was prosecuted by Assistant U.S. Attorney Stacy Dawson Belf of Ortiz’s Major Crimes Unit. The U.S. Attorney’s Office wishes to thank the Massachusetts State Police forensics troopers and detectives assigned to the Worcester County District Attorney’s Office as well as the detectives from the Worcester Police Department for their key assistance during the investigation.
This case is being brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/
Wife of Nicodemo S. Scarfo Admits Conspiring with Him and Others to Defraud A Mortgage Lender to Buy Their HouseRead the Press Release
CAMDEN, N.J. – The wife of a reputed mob figure today admitted she conspired to defraud a mortgage lender in order to buy a $715,000 house in Egg Harbor Township, N.J., U.S. Attorney Paul J. Fishman and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division announced.
Lisa Marie Scarfo, 34, of Elmer, N.J., pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to a superseding information charging her with conspiracy to make false statements for the purpose of influencing the actions of the bank on her mortgage loan application.
According to documents filed in this case and statements made in court: In November 2011, Lisa Marie Scarfo and 12 others – including her husband, Nicodemo S. Scarfo, an alleged member of the Lucchese La Cosa Nostra (LCN) crime family, and Salvatore Pelullo, an alleged associate of the Lucchese and Philadelphia LCN families – were variously charged in a 25-count indictment with a racketeering conspiracy including acts of securities fraud, wire fraud, mail fraud, bank fraud, extortion, interstate travel in aid of racketeering, money laundering and obstruction of justice. The indictment charged that FirstPlus Financial Group Inc. (FPFG), a Texas-based financial services company, was targeted for extortionate takeover and looting by a group of the conspirators. A substantial part of the enterprise’s activities occurred in New Jersey, including communications and the transfer of money into and out of the state.
Lisa Marie Scarfo admitted that she joined the mortgage fraud conspiracy in January 2008 when she worked with her then-fiancé, Nicodemo S. Scarfo, and others to secure a $500,000 mortgage from St. Edmond’s Federal Savings Bank to purchase the Egg Harbor Township house. Drossner previously pleaded guilty and admitted that at the direction of Pelullo, he created false tax returns to help Lisa Marie Scarfo qualify for a mortgage for the house. The indictment alleges that Nicodemo S. Scarfo used money looted from FPFG for the $215,000 down payment on the house. The false tax returns, which exaggerated Lisa Marie Scarfo’s income so that she could qualify for the mortgage without naming her then-fiancé Scarfo, were used to secure the mortgage.
After the FPFG scheme was shut down by federal law enforcement in May 2008, the Scarfos were unable to pay the mortgage and the house ultimately went into foreclosure. It was sold by the bank in 2010.
Nicodemo S. Scarfo, Pelullo, and eight other defendants charged in November 2011 – including attorneys William Maxwell, Cory Leshner, David Adler, Gary McCarthy, and Donald Manno – are scheduled for trial beginning Oct. 28, 2013. Todd Stark, also charged in the indictment, previously pleaded guilty to providing ammunition to Scarfo and Pelullo, convicted felons.
The conspiracy count to which Lisa Marie Scarfo pleaded guilty is punishable by a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Jan. 10, 2014.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Cheryl Garcia, New York Region; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Thomas J. Cannon in Newark. He also thanked the FBI under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia for its vital assistance and the U.S. Securities and Exchange Commission for its role.
The government is represented by Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener, of the New Jersey U.S. Attorney’s Office Organized Crime/Gangs Unit and Criminal Division in Camden, and Trial Attorney Adam Small of the Organized Crime and Gang Section of the Justice Department’s Criminal Division.
With respect to the defendants awaiting trial, the charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
13-374Defense counsel: Richard Sparaco Esq., Cherry Hill, N.J.
Scarfo Superseding Information
Waterloo Man Pleads Guilty to Harboring Illegal Aliens Through Waterloo RestaurantRead the Press Release
Yu Jiang, age 30, from Waterloo, Iowa, pleaded guilty today in United States District Court in Cedar Rapids, Iowa, to one count of conspiracy to transport, harbor and encourage illegal aliens to reside in the United States.
Jiang admitted that during 2011 and 2012, he and others, doing business as the Hibachi Sushi Buffet restaurant in Waterloo, Iowa, knowingly employed undocumented foreign nationals to work at the restaurant. The workers were provided housing by the restaurant and were transported on a daily basis to and from an apartment rented for the workers by Jiang. The workers were provided meals at the restaurant at no charge and were paid in cash for their services.
Jiang faces a possible maximum sentence of 10 years= imprisonment, a $250,000 fine, $100 in special assessments, and up to three years of supervised release following any imprisonment. Jiang, a citizen of China, could also be deported following service of any term of incarceration.
A sentencing date will be set after the completion of a pre-sentence investigation report. Jiang was released on bond.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by Department of Homeland Security Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-02017.
Waterbury Man Sentenced to 27 Months in Prison for Distributing MethRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that KENNETH DeVRIES, also known as “Lyme,” 53, of Waterbury, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 27 months of imprisonment, followed by five years of supervised release, for his role in a meth distribution ring.
According to court documents and statements made in court, this matter stems from a joint investigation by the Drug Enforcement Administration and the Connecticut State Police’s Statewide Narcotics Task Force. The investigation, which included the use of court-authorized wiretaps, controlled purchases of meth, physical surveillance and the use of an undercover officer, revealed that Kevin Wallin of Waterbury received shipments of meth from individuals in California on consignment with the understanding that he would pay his sources with proceeds generated by his distribution of the drug. After receiving the shipments of meth, he distributed the drug to other dealers and sold it to his own customers.
On six occasions between September 2012 and January 2013, Wallin sold meth to the undercover officer.
DeVRIES resided in an apartment located across the hall from Wallin’s apartment. At Wallin’s direction, DeVRIES sold meth to Wallin’s customers when Wallin was unavailable.
DeVRIES has been detained since his arrest on January 3, 2013. On June 17, 2013, he pleaded guilty to one count of conspiracy to distribute 50 grams or more of a mixture and substance containing methamphetamine (“meth”).
Wallin and three other defendants have also pleaded guilty and await sentencing.
This matter is being prosecuted by Assistant United States Attorneys Patrick Caruso and H. Gordon Hall.
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(203) 821-3722 [email protected]Wanblee Man Sentenced to 51 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on September 13, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Provincial remained in the custody of the U.S. Marshals Service.
Angel Provincial, age 23, was sentenced to 51 months’ imprisonment, 3 years' supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
From August 2009 through July 2012, Provincial conspired with others to distribute methamphetamine in and around the Pine Ridge Indian reservation. Provincial pled guilty to the charge on May 8, 2013.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Federal Bureau of Investigation, the Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ted L. McBride prosecuted the case.US Attorney Lynch Testimony at Moreland Act CommissionRead the Press Release
US Attorney Lynch Testimony at Moreland Act Commission
U.S. Attorney and Acting Assistant Attorney General Send Letter to Michigan Supreme Court Addressing Rule 1.111, Foreign Language InterpretersRead the Press Release
091713_AAG_Letter_to MI-Re_Court_Rule(2).pdf (pdf file) Click on link to view document
Two Plead Guilty in International $200 Million Credit Card Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A New York man today admitted his role in one of the largest credit card fraud schemes ever charged by the Justice Department following the guilty plea of another conspirator last week, New Jersey U.S. Attorney Paul J. Fishman announced.
Qaiser Khan, 49, of Valley Stream, N.Y., pleaded guilty today before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court. Khan pleaded guilty to an information charging him with one count of conspiracy to commit bank fraud. Shafique Ahmed, 52, of Floral Park, N.Y., pleaded guilty before U.S. Magistrate Judge Cathy L. Waldor in Newark on Sept. 11, 2013, to an information charging conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:Khan and Ahmed were originally charged in February 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Members of the conspiracy doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts – causing more than $200 million in confirmed losses to businesses and financial institutions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; finally, run up large loans.
The scope of the criminal fraud enterprise required Khan, Ahmed and their conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses of the false identities.
Khan and Ahmed admitted they helped obtain credit cards in the name of third parties – many of which were fictional – then directed the credit cards to be mailed to addresses controlled by members of the conspiracy. They also admitted they knew the cards would be used fraudulently at businesses.
The charges to which Khan and Ahmed pleaded guilty carry a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gain or loss caused by the offense.The defendants are both scheduled for sentencing before U.S. District Judge Anne E. Thompson as follows: Khan on Jan. 6, 2014, and Ahmed on Oct. 30, 2013.
U.S. Attorney Fishman praised special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to the guilty pleas, as well as postal inspectors, under the direction of Postal Inspector in Charge Marie L. Kelokates, and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola. He also thanked the U.S. Social Security Administration for its role in the investigation.
The government is represented by Assistant U.S. Attorneys Daniel V. Shapiro and Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit and Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit in Newark.This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
13-373
Defense counsel: Khan: Christopher Adams Esq., Roseland, N.J.
Ahmed: Joseph Giaramita Esq., BrooklynKhan, Qaiser Information
Ahmed, Shafique InformationTwo Men Sentenced to Prison for Roles in Large-Scale Identity Theft Ring and Tax EvasionRead the Press Release
NEWARK, N.J. – Two men were sentenced to prison terms today for their respective roles in a large-scale and sophisticated identity theft scheme, U.S. Attorney Paul J. Fishman announced.
Sang-Kyu Seo, 63, of Palisades Park, N.J., was sentenced to three years in prison and Young-Woo Ji, 39, Bayside, N.Y., was sentenced to 65 months in prison by U.S. District Judge Katharine S. Hayden in Newark federal court.Seo previously pleaded guilty before Judge Hayden to a five-count information that charged him with conspiracy to unlawfully produce identification documents and false identification documents, aggravated identity theft, conspiracy to commit wire fraud, conspiracy to commit bank fraud, and tax evasion.
Ji previously pleaded guilty before Judge Hayden to an information charging him with conspiracy to commit wire fraud affecting financial institutions and bank fraud, aggravated identity theft and false claims.
According to documents filed in this case and statements made in court:
The Seo Conspiracy
Seo was the owner and operator of Hang Jin Yi Inc., d/b/a Hwangini, a salon located in North Bergen, N.J., and Pier 7 Corporation, a purported small business located in Palisades Park. Seo conspired with Sang-Hyun Park, a/k/a “Jimmy,” and others to obtain a Social Security card beginning with the prefix “586” for another individual. These “586” Social Security cards were issued by the United States to individuals, usually from China, who were employed in American territories, such as Guam. Park is alleged to have been the leader of a criminal organization headquartered in Bergen County, N.J. that obtained, brokered, and sold identity documents to customers for the purpose of committing credit card fraud, bank fraud, tax fraud, and other crimes. Park pleaded guilty on Jan. 9, 2012, to his role in the enterprise and is awaiting sentencing.The Park Criminal Enterprise engaged in the fraudulent “build up” of credit scores associated with the Chinese identities. They did so by adding the Chinese identity as an authorized user to the credit card accounts of various coconspirators who received a fee for this service – members of the enterprise’s credit build-up teams. By attaching the Chinese identities to these existing credit card accounts, the teams increased the credit scores associated with the Chinese identities to between 700 and 800. The members of the build-up teams knew neither the real person to whom the identity belonged nor virtually any of the customers who had purchased the identities.
After building up the credit associated with these identities, Park and his conspirators directed, coached, and assisted the customers in opening bank accounts and obtaining credit cards. Park and his conspirators then used these accounts and credit cards to commit fraud. In particular, Park relied on several collusive merchants who possessed credit card processing, or swipe, machines. For a fee, known as a “kkang fee,” these collusive merchants charged the fraudulently obtained credit cards, although no transaction took place. After receiving the money into their merchant accounts from the credit cards related to these fraudulent transactions, the collusive merchants gave the money to Park and his coconspirators, minus their kkang fee.Seo admitted that he obtained a 586 Social Security card and counterfeit driver’s licenses through Park for a family member, who then used this identity to “bust out” credit cards.
Seo also admitted that he gave his corporate and personal credit cards to Park for the purpose of busting out these maxed out credit cards. In furtherance of this conspiracy, Park and his conspirators issued worthless checks, drawn on bank accounts that had been established using the 586 identities, as payment toward the balances on Seo’s credit cards. Before the banks and credit card companies realized that these checks were bogus, Park and his conspirators charged Seo’s credit cards through collusive merchants or used them to purchase merchandise.
Seo also admitted that in mid-2007, with the assistance of a loan broker, he fraudulently obtained a $100,000 commercial loan on behalf of Pier 7. Seo admitted that he and the loan broker made false statements to obtain the loan, including falsely representing that his business’ annual revenue was approximately $620,000.
Seo admitted that he committed tax evasion by issuing checks to himself and others, representing income derived through the operation of Hwangini, and then failing to report this income on his personal tax returns. Seo admitted that on or about April 15, 2008, he filed an individual income tax return for tax year 2007. This return declared that his taxable income for calendar year 2007 was approximately $197 and the amount of tax due and owing was approximately $19. Seo admitted that this return failed to include $304,848 in additional taxable income that he had received in 2007, having an additional tax of $81,643. He was arrested on Sept. 16, 2010, and released on $250,000 bail.
The Ji Conspiracy
Ji conspired with Park and others to defraud banks, credit card companies, and other lenders. Ji admitted that in February 2008, he traveled to Illinois and used a 586 Social Security card belonging to a person with the initials F.C., to fraudulently obtain driver’s licenses.Ji admitted that he used the F.C. identity to fraudulently obtain credit cards. He then used these credit cards, in the name of F.C., to fraudulently build up credit scores and credit histories for Park’s customers who had obtained 586 identities from the Park Criminal Enterprise.
Ji also admitted that he used the F.C. identity to establish a merchant account for ZZ Entertainment, Inc., a completely fictitious business. By establishing this account, Ji obtained a credit card processing machine and thereafter served as a “collusive merchant” for the Park Criminal Enterprise. Ji acknowledged that between Oct. 5, 2008, and Oct. 20, 2008, he charged $50,000 in fraudulent credit card charges through his ZZ Entertainment Corp. account and then shared portions of this fraud with Park. In total, Ji caused more than $400,000 in financial losses to banks, credit card companies and others.
Ji admitted that he used the 586 identities that he had obtained from Park to file fraudulent tax returns with the IRS. Ji admitted that he used these identities, together with fraudulent W-2 Forms, to claim hundreds of thousands of dollars in tax refunds. He was arrested on Sept. 16, 2010 and released on a $250,000 bail.
In addition to the prison term, Judge Hayden sentenced Seo to three years of supervised release and ordered him to pay $1.2 million in restitution. She sentenced Ji to three years of supervised release and ordered him to pay $187,874 in restitution.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor John L. Molinelli and the Office’s Chief of Detectives Steven Cucciniello, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Anthony Moscato of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
As for other members of the Park Criminal Enterprise, the charges and allegations contained in the Complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
13-375
Defense counsel: Wanda M. Akin Esq., Newark
Two Brothers Plead Guilty in case involving Illegal Guns, Drugs and Juvenile ProstitutionRead the Press Release
Two Tukwila, Washington brothers who were indicted earlier this year for illegal weapons possession, have pleaded guilty in U.S. District Court in Seattle, announced U.S. Attorney Jenny A. Durkan. JAMAAL JOHNATHAN BOMBER, 30, pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime and sex trafficking of a child. FREDERICK N. BOMBER, 31, pleaded guilty to being a felon in possession of a firearm. FREDERICK N. BOMBER faces up to ten years in prison when sentenced by U.S. District Judge Thomas S. Zilly. Under the terms of the plea agreement for JAMAAL JOHNATHAN BOMBER, prosecutors and the defense must recommend between 15 and 20 years in prison when he is sentenced. Both men will be sentenced by Judge Zilly on December 19, 2013.
According to records filed in the case, both men made sales of weapons or drugs to an undercover agent with the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). In April 2013, FREDERICK BOMBER sold the agent a Browning .30-06 caliber rifle. FREDERICK BOMBER was prohibited from possessing the rifle because of prior convictions for drug offenses (2003, 2006) and bail jumping (2006).
According to his plea agreement, JAMAAL JOHNATHAN BOMBER sold crack cocaine to an ATF undercover officer on three different occasions in April and May 2013. JAMAAL JOHNATHAN BOMBER also offered the undercover officer prostitutes, and on June 14, 2013, JAMAAL JOHNATHAN BOMBER had five women go to a hotel room specified by the undercover officer. The women were detained by police. One woman was just 16-years-old. JAMAAL JOHNATHAN BOMBER assisted the woman in working as a prostitute and obtained the profits from the juvenile’s sex acts. JAMAAL JOHNATHAN BOMBER posted pictures as advertisements for commercial sex acts on backpage.com and other sites, and transported the juvenile to locations for sex acts. On the same day that the four women were detained by police, a search of JAMAAL JOHNATHAN BOMBER’s hotel room and car turned up crack cocaine as well as a 12-guage shotgun which he possessed to protect his drugs, the drug proceeds and himself.
Prosecutors will recommend not more than 20 years, and defense attorneys can recommend no less than 15 years for JAMAAL JOHNATHAN BOMBER. However, Judge Zilly is not bound by the recommendations and can impose any sentence allowed by law up to the maximum of life in prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Seattle Police Department (SPD), and the Tukwila Police Department (TPD). The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Tucson Man Sentenced to 18 Years for Child Pornography OffensesRead the Press Release
TUCSON, Ariz. – On Sept. 17, 2013, Billy Dewayne Mills, 34, of Tucson, Ariz., was sentenced to 18 years in prison, followed by a term of lifetime supervised release with stringent sex offender conditions, including registration as a sex offender. Mills pleaded guilty to knowing access of child pornography on March 7, 2013.
Mills was indicted by a federal grand jury for accessing child pornography after an investigation by Tucson Department of Homeland Security Agents revealed that Mills downloaded and shared child pornography by way of a peer-to-peer file-sharing program. Mills had previously been convicted in Missouri of possession of child pornography in 2008 and of first degree child molestation in 2000.This case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney’s Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood coordinates 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 investigation in this case was conducted by Department of Homeland Security – Immigration and Custom Enforcement (ICE) Agents in Tucson. The prosecution was handled by Carin C. Duryee, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-12-02467
RELEASE NUMBER: 2013-073_MillsFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Three Wanblee Men Indicted for Assaulting Two Other MenRead the Press Release
United States Attorney Brendan V. Johnson announced that three Wanblee, South Dakota, men have been indicted by a federal grand jury for allegedly using a blunt object and their shod feet to assault two other men on October 15, 2012, in Wanblee. Both of the assaults resulted in serious bodily injury to the victims.
Robert Quiver Jr., age 21, Levi Quiver, age 27, and Vern Standing Soldier Jr., age 30, were indicted by a federal grand jury on August 27, 2013. Robert Quiver and Levi Quiver were indicted for two counts of Assault with a Dangerous Weapon and two counts of Assault Resulting in Serious Bodily Injury. Standing Solder was indicted for one count of Assault with a Dangerous Weapon and one count of Assault Resulting in Serious Bodily Injury.
Robert Quiver appeared before U.S. Magistrate Judge Veronica L. Duffy, on August 29, 2013, and pled not guilty to the Indictment. Levi Quiver and Standing Soldier appeared before Judge Duffy on September 12, 2013, and each pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of imprisonment and a $250,000 fine for each charge. The charges are merely accusations and each defendant is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.
All three men were remanded to the custody of the U.S. Marshals Service. A trial date has been set for November 19, 2013.