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16 September 2013
Corpus Christi Man Sentenced for Robbing Texas Champion BankRead the Press Release
CORPUS CHRISTI, Texas – Vernon Nicholas Tolmie, 52, of Corpus Christi, has been ordered to prison for robbing Texas Champion Bank through use of force and intimidation, United States Attorney Kenneth Magidson announced today. Tolmie pleaded guilty to one count of bank robbery on Tuesday, Feb. 5, 2013.
Today, Senior U.S. District Judge John D. Rainey, who accepted the guilty plea, handed Tolmie a sentence of 156 months in federal prison to be followed by three years of supervised release. He was further ordered to pay restitution to Texas Champion Bank. Judge Rainey also imposed another 16 months in prison for a violation of supervised release on a case from another district.
As part of his plea, Tolmie admitted he robbed the Texas Champion Bank located on Ayers Street in Corpus Christi on July 11, 2012, and again on Nov. 19, 2012. In both robberies, Tolmie presented threatening notes to bank tellers demanding money.
Tolmie was arrested on Nov. 19, 2012, after Corpus Christi Police officers responded to the bank to investigate the robbery. Officers searched the area and found discarded clothes in an abandoned building matching the clothes worn during the robbery.
The investigation revealed that a man had recently fled the building and entered a nearby restaurant. Officers located Tolmie in that restaurant and he was subsequently detained. Tolmie had the cash from the robbery concealed in his boots and admitted it came from the bank robbery. Tolmie was later identified by an eyewitness and fingerprint evidence as having also committed the July 11, 2012, robbery. Tolmie later admitted he committed both bank robberies.
Tolmie has been in custody without a bond since his arrest. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the FBI and prosecuted by Assistant United States Attorney Sam Brown IV.
Colorado Security Contractor Resolves Overcharging <br /> Allegations Related to Its Work in Iraq and AfghanistanRead the Press Release
The Macalan Group Inc., formerly known as NEK Advanced Securities Inc. (NEK), a security contractor headquartered in Colorado Springs, Colo., has agreed to resolve allegations that it submitted false claims in connection with a contract with the Joint Improvised Explosive Device Defeat Organization (JIEDDO), the Justice Department announced today. NEK’s contract with JIEDDO required it to develop and deploy teams of specialized personnel to Iraq and Afghanistan to combat improvised explosive devices.
“We are committed to pursuing contractors who fail to accurately bill the government,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “The Justice Department will continue to ensure that those who do business with the government do so honestly and fairly and uphold the integrity of our public contracting process.”
“No government contract is more important than one that supports the security efforts of our nation overseas,” said John Walsh, U. S. Attorney for the District of Colorado. “When a contractor fails to bill by the contract rules set up to protect American taxpayers, our office will diligently and aggressively seek to recover any losses, as this case demonstrates.”
The government alleged that NEK submitted false invoices for payment in connection with this contract that claimed excessive or unallowable costs. The most significant of these costs related to lease fees for equipment used under the contract. The government also alleged that NEK was prohibited from charging lease fees that exceeded the price NEK paid to purchase the equipment. To resolve these allegations, NEK will pay the government $2.08 million and also will relinquish an outstanding invoice for $744,969 and turn over numerous weapons and accessories acquired under the contract.This settlement was the result of a coordinated effort by the Department of Justice’s Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the District of Colorado and the Defense Contract Management Agency. The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Colorado Security Contractor Resolves Overcharging <br /> Allegations Related to Its Work in Iraq and AfghanistanRead the Press Release
The Macalan Group Inc., formerly known as NEK Advanced Securities Inc. (NEK), a security contractor headquartered in Colorado Springs, Colo., has agreed to resolve allegations that it submitted false claims in connection with a contract with the Joint Improvised Explosive Device Defeat Organization (JIEDDO), the Justice Department announced today. NEK’s contract with JIEDDO required it to develop and deploy teams of specialized personnel to Iraq and Afghanistan to combat improvised explosive devices.
“We are committed to pursuing contractors who fail to accurately bill the government,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “The Justice Department will continue to ensure that those who do business with the government do so honestly and fairly and uphold the integrity of our public contracting process.”
“No government contract is more important than one that supports the security efforts of our nation overseas,” said John Walsh, U. S. Attorney for the District of Colorado. “When a contractor fails to bill by the contract rules set up to protect American taxpayers, our office will diligently and aggressively seek to recover any losses, as this case demonstrates.”
The government alleged that NEK submitted false invoices for payment in connection with this contract that claimed excessive or unallowable costs. The most significant of these costs related to lease fees for equipment used under the contract. The government also alleged that NEK was prohibited from charging lease fees that exceeded the price NEK paid to purchase the equipment. To resolve these allegations, NEK will pay the government $2.08 million and also will relinquish an outstanding invoice for $744,969 and turn over numerous weapons and accessories acquired under the contract.
This settlement was the result of a coordinated effort by the Department of Justice’s Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the District of Colorado and the Defense Contract Management Agency. The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Clarksville Gang Leader Sentenced to 16 1/2 Years in Federal PrisonRead the Press Release
Brian Vance a/k/a Birdman, 30, of Clarksville, Tennessee, was sentenced yesterday to 16 ½ years in prison, followed by five years of supervised release, for drug conspiracy, accessory after the fact to a drug-related robbery/murder and conspiracy to commit a separate drug-related robbery, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
In sentencing Vance, Judge Kevin Sharp noted that Vance served in a leadership role in the gang and drug activity, showed a “complete lack of respect for the law,” and that people who stood ready to take Vance’s position needed to be deterred. Judge Sharp imposed the 200 month sentence against Vance in consideration of these factors, balanced against Vance’s lack of any criminal history and other mitigating factors.
“This is a significant sentence and it should have a significant impact on criminal gang activity in the Clarksville community,” said Acting U.S. Attorney David Rivera. “We hope that it serves to deter others who are tempted to take over Vance’s position or otherwise engage in criminal gang activity.”
Vance pleaded guilty to the charges on June 10, 2013. According to the statement of facts presented at the hearing, Vance was involved in a drug trafficking conspiracy responsible for distributing cocaine and crack cocaine in the Clarksville area, particularly in the publicly funded Summit Heights housing development.
A lengthy wiretap investigation, authorized by the district court, enabled investigators to expose the conspiracy and uncover murders which occurred in Clarksville and Stewart County, Tenn. The investigation also determined that Vance obtained cocaine from Robert Porter and cooked most of that cocaine into crack cocaine, which he distributed to co-conspirators, including many fellow Vice Lord members.
Porter has also pleaded guilty to the drug conspiracy and is scheduled for sentencing on October 1, 2013.
Vance also provided drugs to his brother, James Farley, Jr., who took the drugs to Stewart County, Tenn. and intended to re-sale them. The buyers, however, tried to rob Farley of the drugs and during the robbery attempt, Farley shot and killed one of the robbers and attempted to kill the other one.
In another incident, three other co-conspirators, who are still pending trial and presumed innocent, are alleged to have killed Raymond Caston in Clarksville while conducting an armed home invasion robbery. Vance then helped these individuals flee Clarksville. Two of them were eventually arrested in Memphis, Tenn., and the third individual returned to Clarksville and conspired with Vance and another person to commit yet another drug-related robbery. That robbery was foiled as a result of the ongoing wiretap investigation.
The investigation was conducted by the Drug Enforcement Administration, the Tennessee Bureau of Investigation and the Clarksville Police Department, with assistance from other local and federal agencies. Assistant U.S. Attorneys Sunny A.M. Koshy and Lynne Ingram represented the United States.
Bridgeport Man Involved in Southeastern Connecticut Drug Ring Sentenced to 37 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that LARRY HARRIS, 57, of Bridgeport, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 37 months of imprisonment, followed by four years of supervised release, for distributing heroin.
In early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut.
According to court documents and statements made in court, on November 16, 2012, HARRIS traveled to a residence on Belden Street in New London, entered the house, exited approximately two minutes later and then drove away in his car. New London Police officers stopped the car a short distance away. During the traffic stop, officers found HARRIS with approximately 40 grams of heroin packaged in four separate plastic bags, and approximately $972 in cash on his person. HARRIS has admitted that some of the heroin was for personal use, and some he intended to sell to others.
On June 17, 2013, HARRIS pleaded guilty to one count of conspiracy to possess with the intent to distribute heroin.
Judge Arterton ordered the sentence to be served concurrent with a state sentence that HARRIS is currently serving.
More than 100 individuals have been charged with federal and state offenses as a result of this investigation.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant United States Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Bismarck Man Sentenced for Possession of Child PornographyRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Sept. 16, 2013, Cory Scherer, 31, Bismarck, N.D., pleaded guilty and was sentenced by U.S. District Judge Daniel L. Hovland on a charge of possession of materials involving the sexual exploitation of minors.
Judge Hovland sentenced Scherer to serve four years and three months in federal prison, to be followed by 10 years of supervised release. Scherer was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
Scherer possessed numerous computer files that contained visual depictions of minors engaging in sexually explicit conduct.
This investigation was initiated by the North Dakota Internet Crimes Against Children Task Force and was a cooperative effort of Homeland Security Investigations, the North Dakota Bureau of Criminal Investigation and the Bismarck Police Department, with the assistance of the Burleigh County State’s Attorney’s Office.
This case was brought as a part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Assistant U.S. Attorney Gary Delorme prosecuted the case.
Ballard Resident who Repeatedly Sold Marijuana to Middle and High School Students Charged FederallyRead the Press Release
A resident of Seattle’s Ballard neighborhood was arrested this morning on a criminal complaint charging him with conspiracy to distribute marijuana, two counts of distribution of marijuana and possession of marijuana with intent to distribute, announced U.S. Attorney Jenny A. Durkan. ALEJANDRO ANTONIO CASTILLO, 51, came to the attention of law enforcement in March 2013 after a middle school parent reported students were purchasing marijuana from CASTILLO’s home a block north of Ballard High School. Surveillance of the home and purchases by undercover officers revealed that CASTILLO and his associates were repeatedly selling marijuana to minors including high school and middle school students from area schools. CASTILLO will appear in U.S. District Court in Seattle at 2:00 today.
“The Department of Justice priorities on marijuana are very clear – and one of the highest priorities is preventing the distribution of marijuana to minors,” said U.S. Attorney Jenny A. Durkan. “The sale of marijuana to these teen-agers not only impacts their ability to learn, it disrupts the educational experience for other students. This conduct is the reason we have stronger penalties for those who distribute drugs within 1000 feet of schools, parks and other places where children congregate.”
“There was a gap in the law from the time I-502 passed until the legislature fixed the legal definition of marijuana that would have made the case extremely problematic for state prosecutors. We appreciate federal prosecutors stepping in to handle this serious case of dealing marijuana to minors,” said King County Prosecutor Dan Satterberg.
According to the criminal complaint on various dates in April 2013, Seattle Police detectives observed teens from Whitman Middle School and Ballard High School approach the home where CASTILLO lives with his family members and associates. The teens would go to the back door of the home, be there for a few minutes and leave. Some were observed to be holding plastic bags of what appeared to be marijuana as they left. On April 5, 2013, detectives observed 18 teens between the age of 14 and 18 approach the house in a three hour period beginning just before noon. Most of the teens appeared to come directly from Ballard High School.
On four different occasions undercover officers posing as juveniles purchased both marijuana and brownies laden with marijuana from CASTILLO or his associates. On April 24, 2013, Seattle Police served a search warrant at the home and seized approximately 1,200 grams of suspected marijuana which included approximately 99 marijuana cigarettes, nine trays of suspected marijuana brownies, four shotguns, one rifle, six handguns, and $4,755 in U.S. Currency. According to police reports, the home had previously been targeted in a home invasion robbery. Two men had fired a shotgun into the house, CASTILLO fired back with one of his firearms, but the robbers fled and no one was hit by gunfire.
Conspiracy to distribute marijuana, two counts of distribution of marijuana and possession of marijuana with intent to distribute are punishable by up to five years in prison and a $250,000 fine.
The case is being investigated by the Seattle Police Department and the Drug Enforcement Administration (DEA) and is being prosecuted by Special Assistant United States Attorney Stephen Hobbs. Mr. Hobbs is a Senior Deputy King County Prosecutor specially designated to prosecute gun and drug cases in federal court.
Attorney General Eric Holder Releases Statement on the Washington Navy Yard ShootingRead the Press Release
The Attorney General issued the following statement today in the wake of the tragedy at the Washington Navy Yard:
“The thoughts and prayers of everyone at the Department of Justice are with the victims of this heinous attack, and their families. We also extend our sincerest gratitude to the local and federal law enforcement agents in our nation's capital who bravely responded to the scene and prevented this tragedy from claiming even more lives.
“From my time as U.S. Attorney for the District of Columbia, I understand the importance of seamless cooperation at every level of government in investigations like this one. The full resources of the Department of Justice will continue to be made available to support our law enforcement partners as our nation responds to this latest mass shooting.”
Art Dealer Pleads Guilty in ManhattanFederal Court to $80 Million Fake Art Scam,Money Laundering, and Tax ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that art dealer GLAFIRA ROSALES pled guilty today in Manhattan federal court to participating in a scheme to sell more than 60 fake works of modern art to two New York art galleries. Her victims paid more than $80 million for the fake works. ROSALES also pled guilty to conspiracy to sell the fake works, conspiracy to commit money laundering, money laundering, and several tax crimes related to the fake art scheme. ROSALES pled guilty before U.S. District Court Judge Katherine P. Failla.
Manhattan U.S. Attorney Preet Bharara said: “With her guilty plea today, Glafira Rosales acknowledges her role in a sprawling fraud that involved the commission of phony artworks she represented as real, and her efforts to hide the proceeds of this massive scam in foreign bank accounts. Rosales’s plea shows that no matter how wide-ranging the deception, this Office will continue to bring the perpetrators of fraud to justice.”
According to the allegations contained in the Complaint, Indictment, superseding Indictment, and statements made in court:
ROSALES was an art dealer who, starting in 1994 and continuing through 2009, sold more than 60 never-before-exhibited and previously unknown works of art (the “Works”) that she claimed were by the hand of some of the most famous artists of the twentieth century, such as Jackson Pollock, Mark Rothko, and Robert Motherwell. She sold the Works to two prominent Manhattan art galleries for approximately $33.2 million. The galleries, in turn, sold the Works to victims of ROSALES’s crime for more than $80 million.
The Works were fakes created by a painter (the “Painter”) who resided in Queens, New York. ROSALES conspired with her long-time companion, identified as a co-conspirator (“CC-1”) in the superseding Indictment, to procure and sell the Works and to launder the proceeds of the fraud. CC-1 first met and befriended the Painter in Manhattan in the 1980s while the Painter was painting on the street. The Painter, who received formal art training at an art school in New York, created the Works for ROSALES and CC-1 at the Painter’s home in Queens. In some instances, the Painter signed the purported artist’s name to the Works, such as Jackson Pollock, but in other cases, CC-1 applied the false signatures. After ROSALES and CC-1 retrieved the Works from the Painter, CC-1 gave the Works the false patina of age by subjecting the Works to a number of different treatments.
The provenance that ROSALES supplied for the Works was also false. In selling some of the Works, she purported to represent a particular client who was associated with Switzerland, had inherited the paintings and wanted to sell them, but also wished to remain anonymous (the “Purported Swiss Client”). For the remainder of the paintings, ROSALES purported to represent a Spanish collector (the “Purported Spanish Collector”). She further claimed that a portion of the price paid by the Manhattan galleries would be a commission to her for selling the paintings and that the remainder would be passed along to her clients. In truth and fact, the Purported Swiss Client never existed and the Purported Spanish Collector never actually owned any of the Works.
ROSALES also filed tax returns that falsely and fraudulently tended to show that she had not kept all or substantially all of the proceeds from the sale of the Works, when, in fact, ROSALES kept several million dollars of the proceeds.
ROSALES received most of the proceeds from the sale of the Works in a foreign bank account that she hid from, and failed to report to, the IRS. United States taxpayers are required to report to the IRS the existence of any foreign bank account that holds more than $10,000 at any time during a given year by the filing of a Report of Foreign Bank and Financial Accounts, Form TD F 90-22.1.
ROSALES, 57, of Sands Point, New York, pled guilty to nine counts, including: one count of conspiracy to commit wire fraud, one count of wire fraud, one count of conspiracy to commit money laundering, and one count of money laundering, each of which carries a maximum sentence of 20 years in prison; three counts of filing false federal income tax returns, each of which carries a maximum sentence of three years in prison; and two counts of willful failure to file Report of Foreign Bank and Financial Accounts, Form TD F 90-22.1, each of which carries a maximum sentence of five years in prison. ROSALES’s total maximum term of imprisonment is 99 years. She also agreed to forfeit $33,200,000, including her home in Sands Point, New York, and to pay restitution in an amount not to exceed $81 million. Rosales will be sentenced by Judge Failla on March 18, 2014 at 2:30 p.m.
Mr. Bharara praised the outstanding efforts of the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation in the investigation, which he noted is ongoing.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorney Jason P. Hernandez is in charge of the prosecution.
Rosales, Glafira S1 Indictment
Arizona Man Admits Role in Fraudulent Federal Income Tax Refund SchemeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that CHARLES ROSS, 41, of Surprise, Ariz., pleaded guilty today before Senior U.S. District Judge Warren W. Eginton in Bridgeport to one count of wire fraud stemming from his role in an extensive federal income tax refund scheme.
According to court documents and statements made in court, between November 2012 and May 2013, ROSS and others conspired to file false federal income tax returns in the names of individuals in Connecticut and elsewhere without the individuals’ knowledge. As part of the scheme, ROSS and others recruited victims by advertising that individuals were eligible for government funding. ROSS’s co-conspirator, who held herself out falsely to be a certified public accountant, used the victims’ names, dates of birth, and Social Security Numbers to prepare and file false federal income tax returns, and then directed a portion of the resulting tax refunds to herself, to ROSS, and to the victims through a prepaid debit card. ROSS also paid another co-conspirator who helped recruit victims.
When he is sentenced, ROSS faces a maximum term of imprisonment of 30 years.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation and the United States Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Allenwood Inmate Indicted for Assault of Another InmateRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that a federal grand jury in Williamsport returned an indictment on September 11 charging an inmate at the United States Penitentiary at Allenwood, Pennsylvania.
According to United States Attorney Peter J. Smith, Christopher Charles, age 30, is charged with assaulting another inmate at the Allenwood Penitentiary on June 26, 2012, causing the victim to suffer serious bodily injury.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney William Simmers.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Alabama Man Indicted for Multi-Year Stolen Identity Refund Fraud ConspiracyRead the Press Release
An indictment was unsealed today in Montgomery, Ala., charging Nakia Jackson with conspiracy to file false tax returns, theft of public funds and aggravated identity theft, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney for the Middle District of Alabama George L. Beck Jr. The indictment was unsealed following Jackson’s arrest.
According to the indictment, between January 2009 and March 2011, Jackson conspired with several individuals to file false tax returns using stolen identities, some of which Jackson obtained from a state employee. He used the stolen identities to file false tax returns and directed the tax refunds to several bank accounts. The bank accounts were opened by individuals Jackson recruited to receive the false refunds and directed them to withdraw the false refund money. Jackson also recruited a bank teller to aide in the scheme.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Jackson faces a maximum potential sentence of 10 years in prison for the charge of conspiracy to defraud the United States and for each count of theft of government money count, and a mandatory two-year sentence for the aggravated identity theft counts. He is also subject to forfeiture, fines and mandatory restitution if convicted.
This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles M. Edgar Jr. and Michael Boteler of the Justice Department’s Tax Division are prosecuting the case.*******MEDIA ADVISORY******* Press Conference to Announce Arrests in the Northern District's Ongoing Heroin Initiative to Attack Sources of the Highly Addictive and Deadly Drug in Our Communities.Read the Press Release
WHAT: Press conference
WHEN: MONDAY, Sept. 16, 2013
2 p.m.
WHERE: DEA Office
920 18th Street North
Birmingham, AL 35203
First FloorMedia should arrive approximately 30 minutes prior to press conference for set up.
NOTE: All media must show driver's license and valid media credentials. For additional information, contact Peggy Sanford at 205-244-2020, or [email protected].
15 September 2013
Vermont Corrections Officer Charged with Engaging in Sexual Conduct with InmateRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that the Grand Jury has returned an Indictment charging Tracy Holliman, of South Burlington, with four counts of engaging in sexual acts with women who were held in federal custody at the Chittenden Regional Correctional Facility in South Burlington. The Grand Jury charged that Holliman engaged in this conduct with two different women who were being held relating to federal charges between April and June, 2013.
It is a federal felony for a correctional officer to engage in sexual acts with a federal inmate over whom the officer has custodial, supervisory, or disciplinary authority, while working at a federal facility or one that that contracts with the United States to house federal detainees. Consent is not a legal defense to corrections staff who engage in sexual acts with inmates. The United States Attorney noted that this is due to several factors, including the inherent inequality between inmates and correctional staff.
Holliman is presumed innocent until and unless he is convicted after a trial or pleads guilty.
Following his arrest, Holliman was arraigned before United States Magistrate Judge John M. Conroy and released on conditions.
Working in cooperation with the Vermont Department of Corrections, this matter was investigated by the United States Marshals Service, the Federal Bureau of Investigation, and the Vermont State Police.
Holliman is represented by Mark Kaplan, Esq., of Burlington.
14 September 2013
Southern Oregon Couple Indicted in Mail Theft Scheme to Defraud VictimsRead the Press Release
sub titleMEDFORD, Ore. – Gregory Brooks 49, and Michelle Lustig, 44, of Grants Pass, Oregon, were indicted by a federal grand jury. Both were charged with conspiracy to commit mail theft and bank fraud and committing aggravated identity theft. The charges involve the theft of mail from over 400 victims in communities located in Jackson and Josephine Counties during a four month period beginning in March 2013, and include a scheme in using the victim’s stolen personal identity to defraud banks and local merchants. Brooks was arraigned on the charges before Federal Magistrate Judge Mark Clarke who set Brook’s trial for November 19, 2013. Brooks remains in federal custody. Arrest warrants have been issued for Lustig and anyone with information about her whereabouts is requested to contact the Grants Pass Department of Public Safety or their nearest law enforcement agency.
An indictment (see attached) is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty. If convicted, the sentences range from maximum sentences of 5 to 30 years in prison, with a mandatory minimum sentence of two years for an aggravated identity theft conviction.
The U.S. Attorney’s Office is working with the U.S. Postal Inspection Service, Grants Pass Department of Public Safety and the Jackson County Sheriff’s office in the investigation and prosecution of this case.
For more information, please see the attached indictment Here
13 September 2013
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
James Tolson, 39, of Wabash, Indiana, pled guilty before Magistrate Judge Christopher A Nuechterlein to the felony offense of being a felon in possession of firearm. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing is set for 12/12/2013.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives .This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Gary Wright, 32, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of knowingly possessing a firearm in furtherance of a drug trafficking offense. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 12/17/2013.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Brock Crowe, 38, of North Delphi, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of knowingly and intentionally conspiring to deliver over 500 grams of cocaine. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 12/19/2013.This charge was filed as a result of an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Nora Guardiola, 35, of Shelton, Illinois, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of knowingly and intentionally distributing cocaine. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 12/1/2013.This charge was filed as a result of an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
Joseph Olivo, 33, of Rolling Prairie, Indiana, pled guilty before District Judge Jon E. DeGuilio to the felony offenses of conspiracy to distribute over 100 kilograms of marijuana, distribution of heroin, being a felon in possession of a firearm and maintaining a residence to distribute marijuana.Sentencing has been set for 12/5/2013.This case resulted from an investigation by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney William Grimmer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Joseph Bradshaw, Jr, 31, of Warsaw, Indiana was sentenced by District Judge Robert L. Miller Jr. to 80 months imprisonment to be served consecutive to an undischarged term of imprisonment in Indiana cause number 71D02-1206-FB-00098 with 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm.According to documents filed in this case, on April 7, 2011, Warsaw Police responded to a complaint of drug use and paraphernalia at a residence.The response led to officers finding a .22 cal. semi-automatic handgun at a second location.Bradshaw Jr. was questioned and admitted he stole the firearm from a relative. Mr. Bradshaw Jr. has theft and sexual battery felony convictions. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Frank Schaffer .
Ronald Brownlee, 47, of South Bend, Indiana was sentenced by District Judge Robert L. Miller Jr. to 60 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of knowingly possessing a stolen firearm.According to documents filed in this case, on or about March 13, 2013, law enforcement searched Brownlee’s home in South Bend and recovered four stolen firearms.Upon further inspection, law enforcement was able to determine the weapons in question were not manufactured in Indiana and thus affected interstate or foreign commerce. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Frank Schaffer .
Darrius Agnew, 33, of Mishawaka, Indiana was sentenced by District Judge Robert L. Miller Jr. to 120 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of possession of a stolen firearm.According to documents filed in this case, Agnew was on home detention under the supervision of the Ducomb Center in November 2012. Agnew refused to let a Ducomb Center employee into his apartment in early November 2012. Local law enforcement did later search Agnew’s residence and discovered firearms including an Uzi 9mm, a Springfield XD pistol and a Winchester 1400 MK II 12 gauge shotgun.Upon further inspection, it was determined the Springfield was reported stolen in 2011.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Brison Williams, 20, of South Bend, Indiana was sentenced by District Judge Robert L. Miller Jr to 97 months imprisonment and 2 years supervised release after pleading guilty to the felony offense of racketeering.According to documents filed in this case, in 2010 and 2011, Williams was a member of the criminal enterprise, Cash Out Boyz.During his time with the organization, Williams trafficked in marijuana and was involved in the confrontation of a Boyz member which led to a shooting and beating. Williams was also involved in additional numerous violent criminal activities.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the South Bend Police Department.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Abdkadr Mohammad, 29, of Chicago, Illinois, pled guilty before Chief Judge Philip Simon to the felony offense of conspiracy to defraud the USDA’s SNAP benefit program.Sentencing has been set for 1/10/14.This charge was filed as a result of an investigation by the Federal Bureau of Investigation and the US Department of Agriculture/Office of the Inspector General.This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
Miguel Herrera-Torres, 32, of Chicago, Illinois, pled guilty before Senior District Judge Rudy Lozano to the felony offense of re-entry of a deported alien.Sentencing has been set for 12/11/13.This charge was filed as a result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case is being prosecuted by Special Assistant United States Attorney Armando Salinas.
Julius Solis, 24, and Michael Castillo, 22, both of East Chicago, Indiana and defendants in the case US v Briseno et al., pled guilty before Chief Judge Philip Simon this week.Both pled guilty to the felony offense of conspiracy to participate in racketeering activity.Additionally, Solis pled guilty to the use of a firearm during a federal crime of violence and drug trafficking crime and Castillo pled guilty to conspiracy to possess with the intent to distribute cocaine and marijuana. These charges were filed as a result of an investigation by This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the East Chicago Police Department, and the Federal Bureau of Investigation, with assistance from the Gary Police Department, the Hammond Police Department and the Lake County HIDTA.This case is being prosecuted by Assistant United States Attorney David Nozick
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Amin Velazquez, 33, of Rensselaer, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 30 months imprisonment and 2 years of supervised release if not deported after pleading guilty to the felony offense of conspiracy to distribute cocaine.According to documents filed by the government in this case, Velazquez was responsible for assisting with the transportation of a significant amount of cocaine. This case was the result of an investigation by the Drug Enforcement Administration and the Illinois State Police.This case was prosecuted by Assistant United States Attorney Joshua Kolar.
Daniel Roman, 33, of Hammond, Indiana, was sentenced by Chief Judge Philip Simon to 56 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon. According to documents filed in this case, Roman has a prior conviction for burglary and was on probation at the time of the instant offense. Roman’s illegally possessed a firearm while possessing with the intent to distribute marijuana.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Terry Carlyle, 56, of Mooresville, Indiana, was sentenced by Chief Judge Philip Simon to 120 months imprisonment and 5 years of supervised release after pleading guilty to the felony offense of conspiracy to possess with the intent to distribute and distribute cocaine.Carlyle, a former Marshal with the Brooklyn, Indiana Police Department and police officer with the Indianapolis Police Department, along with John Smith, a former Brooklyn Police Department officer, used their police credentials in their efforts to protect drug shipments. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Indiana State Police and the Indianapolis Metropolitan Police Department.This case was prosecuted by Assistant United States Attorney David Nozick.
David Finley, Jr., 32, of Merrillville, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 30 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of making false statements in the purchase of a firearm and distribution of marijuana.According to documents filed in this case, Finley, a former Gary Police Officer, committed multiple crimes during a three week period by straw purchasing a handgun for a friend (a convicted felon) and selling marijuana.While awaiting sentencing on these crimes, Finley provided false information to the Court by submitting fake character letters .This case was the result of an investigation by the Federal Bureau of Investigation GRIT Task Force and the Gary Police Department.This case was prosecuted by Assistant United States Attorney Gary Bell.
Tamika Gayden, 32, of Gary, Indiana, was sentenced by Senior District Judge Rudy Lozano to 12 months of probation to include 6 months of home detention after pleading guilty to the felony offense of making false statements in connection with the purchase of firearms.According to documents filed in this case, Gayden straw-purchased five firearms for other individuals.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Dean Lanter.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
INDICTMENT:
Michael English, 33, of Gary, Indiana, was charged with 3 counts of distribution of marijuana, 1 count of possession of firearms by a convicted felon and 1 count of possession of an unregistered firearm.These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Gary Police Department.This case has been assigned to and will be prosecuted by Special Assistant United States Attorney Armando Salinas.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
PLEAS:
Diamond Toney, 20, of Merrillville, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of aiding and abetting the brandishing of a firearm during a crime of violence.Sentencing has been set for 11/25/13.This charge was filed as a result of an investigation by Federal Bureau of Investigation GRIT Task Force and the Merrillville Police Department.This case is being prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Jose Ortiz, 32, of Chicago, Illinois, a defendant in the case US v Yepez et al., pled guilty before Chief Judge Philip Simon to the felony offense of conspiracy to possess with the intent to distribute cocaine.This charge was filed as a result of an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorneys Jennifer Chang-Adiga and Thomas McGrath.
Antonio Wilson, 31, of Gary, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offense of distribution of cocaine base within 1000 feet of a school.This charge was filed as a result of an investigation by the Federal Bureau of Investigation and the Gary Police Department.This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
Timothy Yatsko, 41, of Lake Station, Indiana, pled guilty before Senior District Judge James Moody to the felony offense of possession of a firearm.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force.This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Steven Biggs, 61, of Gary, Indiana, a defendant in the case US v Crawford et al., was sentenced by Senior District Judge James Moody to 1 year of probation after pleading guilty to the felony offense of use of a communication facility to facilitate a conspiracy to distribute marijuana. According to documents filed in this case, Biggs purchased marijuana in a sufficient quantity to redistribute a portion to his friends for purposes of subsidizing his own use of marijuana. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Internal Revenue Service.This case was prosecuted by Assistant United States Attorney Jacqueline Jacobs.
Hector Garcia, 35, of Cicero, Illinois, a defendant in the case US v Vasquez et al., was sentenced by District Judge Joseph Van Bokkelen to 37 months of imprisonment and 2 years of supervised release after pleading guilty to the felony offenses of possession and distribution of cocaine.This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney David Nozick.
David Hardin, Jr., 25, of Gary, Indiana, a defendant in the case US v Miller et al., was sentenced by Senior District Judge Rudy Lozano to 365 months of imprisonment, 3 years of supervised release and $79,919.56 in restitution after pleading guilty to the felony offense of the bank robbery of BMO Harris Bank in Hammond, Indiana.According to documents filed in this case, a Hammond police officer was shot three times in his leg during the robbery.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney David Nozick.
Jeffrey A. Smith, 33, of Valparaiso, Indiana, was sentenced by Chief Judge Philip Simon to 84 months imprisonment and 10 years of supervised release after pleading guilty to the felony offense of possession of child pornography.According to documents filed by the government in this case, Smith “friended” the victim on MySpace and asked the victim, who he knew to be 15 years old at the time, to send him sexually explicit photos of herself.Smith also transported the victim in interstate commerce, in this case from Ohio to Indiana, with the intent that she engage in sexual activity. This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Jill Koster.
Deanbra Martin, 33, of Gary, Indiana, was sentenced by Chief Judge Philip Simon to 33 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm and ammunition by a convicted felon. According to documents filed in this case, Martin was on probation at the time of the instant offense.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Michigan City Police Department.This case was prosecuted by Assistant United States Attorney Joshua Kolar.
Virginia Beach Man Pleads Guilty to Six Armed Bank RobberiesRead the Press Release
RICHMOND, Va. – Jaquan C. Douglas, 20, of Virginia Beach, Va., pleaded guilty today to conspiracy to obstruct, delay and affect commerce by robbery, aiding and abetting credit union robbery, discharging a firearm in furtherance of a crime of violence, and brandishing a firearm in furtherance of a crime of violence for his role in six separate armed bank robberies occurring in multiple Virginia jurisdictions.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Nancy G. Parr, City of Chesapeake Commonwealth Attorney; Wiliam W. Davenport, Chesterfield County Commonwealth; Lyndia P. Ramsey, Sussex County Commonwealth Attorney; and Harvey L. Bryant, City of Virginia Beach Commonwealth Attorney, made the announcement after the plea was accepted by United States District Judge Henry E. Hudson.
Douglas was charged on August 26, 2013, in a Criminal Information with conspiracy to obstruct, delay and affect commerce by robbery, aiding and abetting credit union robbery; discharging a firearm in furtherance of a crime of violence; and brandishing a firearm in furtherance of a crime of violence. Douglas faces a maximum penalty of life imprisonment when he is sentenced on December 13, 2013.
In a statement of facts filed with his plea agreement, Douglas admitted to participating in six armed bank robberies in Virginia, including the April 19, 2012 robbery of the BB&T Bank located in Wakefield, Virginia; the April 23, 2012 robbery of the Bank of Southside Virginia located in Stony Creek, Virginia; the June 1 and July 10, 2012 robberies of the Chartway Federal Credit Union located in Virginia Beach, Virginia; the August 22, 2012 robbery of the Central Virginia Bank located in Midlothian, Virginia; and October 2, 2012 robbery of the ABNB Federal Credit Union located in Chesapeake, Virginia. During the April 23, 2012 robbery of the Bank of Southside Virginia in Stony Creek, Douglas discharged his firearm while fleeing the scene of the bank.
This case was investigated by the Federal Bureau of Investigation, the City of Chesapeake Police Department, the Chesterfield County Police Department, the Sussex County Sheriff’s Office, and the City of Virginia Beach Police Department. Assistant United States Attorney Erik S. Siebert is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.U.S. Attorney Durkan Joins Tribal and DOJ Leaders for Conference on Indian Country IssuesRead the Press Release
U.S. Attorney Jenny A. Durkan will join other Department of Justice leaders and U.S. Attorneys from the Pacific Northwest for a conference devoted to Native American Issues. The U.S. Attorneys from the Attorney General’s Advisory Council (AGAC) Native American Issues Subcommittee (NAIS) will meet in Hood River, Oregon next week, Sept. 17-19, 2013. Washington State Tribal leaders will meet with DOJ leaders to discuss strengthening offender reentry efforts, white collar crime, juvenile justice issues, defending Indian hunting and fishing rights, and support for the implementation of the 2013 Violence Against Women Reauthorization Act (VAWA 2013).
“With twenty-five recognized Tribes in the Western District of Washington, the safety and security of our Native Communities is one of our top priorities,” said U.S. Attorney Jenny A. Durkan. “These meetings with Tribal leaders can help tailor federal programs to meet the diverse needs of our Tribal partners – from large urban reservations to smaller rural tribes. I look forward to the opportunity to work on these issues with other U.S. Attorneys and Tribal leaders.”
On Sept. 18, U.S. Associate Attorney General Tony West and Assistant Attorney General for the Office of Justice Programs Karol Mason will join the U.S. Attorneys for a special joint session with Tribal leaders from Oregon, Washington and Idaho to be held in Celilo Village, Oregon.
“While we are mindful of the great progress that is being made by U.S. Attorneys and tribal justice systems across Indian country, I look forward to exploring with the NAIS and tribal leaders ways that we can strengthen our government-to-government relationships even more, work ever closer with tribal nations, and advance our shared goal of building safe, sustainable, and healthy communities,” said Associate Attorney General West.
Thirty U.S. Attorneys from districts with Indian country or one or more federally recognized tribes serve on the NAIS. The NAIS focuses exclusively on Indian country issues, both criminal and civil, and is responsible for making policy recommendations to the Attorney General regarding public safety and legal issues.
VAWA 2013 was signed into law by President Obama on March 7, 2013. This law contains provisions that significantly improve the safety of native women and allow federal and tribal law enforcement agencies to hold more perpetrators of domestic violence accountable for their crimes. Many of these critical provisions were drawn from the U.S. Department of Justice’s July 2011 proposal for legislation to combat violence against native women. The Department is exploring with tribal leaders how the Department can help support the new law’s implementation. This law generally takes effect on March 7, 2015, but also authorizes a voluntary pilot project to allow certain tribes to begin prosecuting additional cases sooner.
In June 2009, Attorney General Eric Holder launched a Department-wide initiative to enhance public safety in Indian country. Significant progress has been made since then, and the U.S. Attorney’s Offices with Indian country jurisdiction have had a major role in this success.
In May 2013, the Justice Department released its first report to Congress, required under the Tribal Law and Order Act, entitled Indian Country Investigations and Prosecutions (ICIP). The ICIP report, based on data compiled from the case management system used by U.S. Attorney’s Offices (USAOs) with Indian country jurisdiction shows, among other things, a 54 percent increase in Indian country criminal prosecutions since Fiscal Year 2009.
The information contained in the report shows, among other things, the following:• The Justice Department’s prioritization of Indian country crime has resulted in a notable increase in commitment to overall law enforcement efforts in Indian country. Caseloads have increased overall from 1,091 cases filed in fiscal year (FY) 2009 to 1,138 in FY 2010 to 1,547 in FY 2011 to 1,677 in FY 2012. This represents a nearly 54 percent increase in the Indian country crime caseload.
• The report shows a new era of partnership between the federal government and American Indian tribes, including an unprecedented level of collaboration with tribal law enforcement. The increase in collaboration and communication strengthens the bond of trust between federal and tribal investigators, prosecutors, and other personnel in both federal and tribal criminal justice systems. As a result, tribal communities will be safer places to live, work and raise families.
Read more about the Justice Department’s efforts to support implementation of VAWA 2013: http://www.justice.gov/tribal/vawa-tribal.html
Read the entire ICIP report at www.justice.gov/tribal/tloa-report-cy-2011-2012.pdf
Read about the Justice Department’s efforts to increase public safety in Indian County at www.justice.gov/tribal/accomplishments.html
Two More Carlsbad Men Plead Guilty to Committing Hobbs Act Robberies in Southeastern New MexicoRead the Press Release
ALBUQUERQUE – The last two of six men from Carlsbad, N.M., who perpetuated a string of commercial robberies in southeastern New Mexico between Nov. 2012 and Jan. 2013 have pleaded guilty, announced Acting U.S. Attorney Steven C. Yarbrough, 5th Judicial District Attorney Janetta B. Hicks, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, Chief Daniel Fierro of the Carlsbad Police Department, Chief Don Raley of the Artesia Police Department, and Chief Chris McCall of the Hobbs Police Department.
Tyler Williams, 19, and Mario Muro, 23, pleaded guilty this morning in federal court in Las Cruces to violating the Hobbs Act by robbing businesses engaged in interstate commerce. They were charged, together with four other Carlsbad residents, Bennie Juarez, 27, Logan Magby, 19, Rance Williams, 23, and Maurice Williams, 35, in a criminal complaint filed on May 29, 2013. The criminal complaint charged the six men, acting in groups, with robbing the following five commercial businesses in southeastern New Mexico between Nov. 2012 and Jan. 2013:
- The Family Dollar located at 403 W. Quay Street in Artesia, N.M., by Bennie Juarez and Maurice Williams on Nov. 15, 2012.
- The Shop-N-Go located at 22212 W. Lea Street in Carlsbad by Bennie Juarez and Rance Williams on Nov. 28, 2012.
- The Family Dollar located at 901 W. Mermod Street in Carlsbad by Bennie Juarez and Maurice Williams on Dec. 2, 2012.
- The Dollar General located at 730 N. Dal Paso in Hobbs, N.M., by Bennie Juarez, Rance Williams and Tyler Williams on Dec. 9, 2012.
- The Domino’s Pizza located at 302 S. 1st Street in Artesia by Bennie Juarez, Mario Muro, Logan Magby and Tyler Williams on Jan. 6, 2013.
According to the criminal complaint, the perpetrators wore masks or covered their faces with bandanas and brandished firearms at the store employees when they committed the aforementioned robberies.
During today’s proceedings, Tyler Williams entered a guilty plea to a two-count felony information charging him with conspiracy to rob the Dollar General in Hobbs on Dec. 9, 2012, and conspiracy to rob the Domino’s Pizza in Artesia on Jan. 6, 2013. Muro entered a guilty plea to a felony information charging him with conspiracy to rob the Domino’s Pizza in Artesia on Jan. 6, 2013. Both men entered their guilty pleas under plea agreements with the U.S. Attorney’s Office. At sentencing, Tyler Williams and Muro each face a maximum penalty of 20 years in prison on each count of conviction.
The other four men charged in the criminal complaint also have pleaded guilty:
- Juarez entered a guilty plea on Aug. 20, 2013, to a felony information charging him with five counts of conspiracy to violate the Hobbs Act by robbing each of the five businesses numerated above.
- Magby entered a guilty plea on Sept. 3, 2013, to a one-count felony information charging him with conspiracy to rob the Domino’s Pizza in Artesia on Jan. 6, 2013.
- Rance Williams entered a guilty plea on Sept. 10, 2013, to a two-count felony information charging him with conspiracy to rob the Shop-N-Go in Carlsbad on Nov. 28, 2012, and conspiracy to rob the Dollar General in Carlsbad on Dec. 2, 2012.
- Maurice Williams entered a guilty plea to a two-count felony information charging him with conspiracy to rob the Family Dollar in Artesia on Nov. 15, 2012, and conspiracy to rob the Family Dollar in Carlsbad on Dec. 2, 2012.
Juarez, Magy and Rance Williams entered their guilty pleas under plea agreements with the U.S. Attorney’s Office, while Maurice Williams pleaded guilty without the benefit of a plea agreement. At sentencing, each man faces a maximum penalty of 20 years in prison on each count of conviction.
These cases were brought as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The cases were investigated by the Roswell office of the FBI, Carlsbad Police Department, Artesia Police Department and Hobbs Police Department, with assistance from the 5th Judicial District Attorney’s Office. The cases are being prosecuted by Assistant U.S. Attorneys Luis A. Martinez and Edwin Garreth Winstead III of the U.S. Attorney’s Las Cruces Branch Office.
Triadelphia Resident Convicted on Federal Firearms Charge Defendant Faces up to Ten Years in PrisonRead 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 44-year old Triadelphia, West Virginia, man was convicted this week by a federal jury of being a felon in possession of a firearm.
According to United States Attorney William J. Ihlenfeld, II, BRIAN BEHRENS was convicted of the felony offense of “Prohibited Person in Possession of a Firearm” after a two-day jury trial. Evidence was offered at trial showed that BEHRENS possessed a loaded Remington Model 700 7MM Caliber Magnum Hunting Rifle in a vehicle on McCutcheon Road in Ohio County while hunting for deer last November. BEHRENS was approached by a West Virginia Department of Natural Resources officer and initially provided a false name before acknowledging his true identity.
BEHRENS was prohibited from possessing a firearm due to a prior felony conviction in federal court in West Virginia for “Possession of a Firearm and Ammunition after Conviction for Domestic Violence.”
BEHRENS, who is in custody pending sentencing, faces up to 10 years imprisonment and a $250,000 fine.The case was prosecuted by Assistant United States Attorney Stephen L. Vogrin and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia DNR Law Enforcement Section.
Topeka Man Pleads Guilty to Bank Fraud in Junction City Apartment DealRead the Press Release
TOPEKA, KAN. - A Topeka man has pleaded guilty to federal bank fraud charges in connection with a plan to build an apartment complex in Junction City, U.S. Attorney Barry Grissom said today.
John Wyatt Duncan, Jr., 52, Topeka, Kan., pleaded guilty to two counts of bank fraud, one count of money laundering and one count of making false statements in documents required by the Employee Retirement Income Security Act (ERISA).
In court documents, Duncan was alleged to have obtained a $15.2 million construction loan for the purpose of constructing Quinton Pointe Apartments in Junction City. He was required to provide $1,225,000 in collateral. He signed a letter to the lender, University National Bank of Lawrence, Kan., falsely stating that lumber for the construction of the apartment complex, representing collateral for the loan, was prepaid in full and being held by Schmidt Builders, a company for which he was chief executive officer. He instructed employees of Schmidt Builders to create a false invoice in an amount of more than $1.3 million to a company he owned called Blue Jay Properties LLC in order to create the false appearance that Blue Jay Properties had prepaid Schmidt Builders for the lumber.
In another count, Schmidt Builders acquired a $12 million line of credit loan from Kaw Valley National Bank of Topeka and agreed to provide the bank with monthly financial reports. Duncan submitted reports to the bank containing false information about the age of certain accounts receivable and the amount of inventory on hand.
Sentencing is set for Dec. 16. He faces a maximum penalty of 30 years and a fine up to $1 million on each of the bank fraud counts, a maximum penalty of 10 years and a fine up to $250,000 on the money laundering and a maximum penalty of five years and a fine up to $250,000 on the count of making false statements. Grissom commended the Internal Revenue Service, Criminal Investigations Division; the Federal Deposit Insurance Corporation, Office of Inspector General; the Federal Reserve Board, Office of Inspector General; the U.S. Department of Labor and Assistant U.S. Attorney Duston Slinkard for their work on the case.Third City of Buffalo Employee Charged with Stealing Thousands of Dollars from Parking MetersRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Franklin Lopez, 33, of Buffalo, New York, was charged by criminal complaint with stealing thousands of dollars from the City of Buffalo, a Governmental agency which receives federal funding. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Maura K. O'Donnell, who is handling the case, stated that the defendant was employed part time as a coin collector for in the City of Buffalo Department of Parking Enforcement between 2003 and 2011. In this capacity, Lopez was responsible collecting coins deposited into parking meters.
According to the complaint, on August 16, 2011, Buffalo Police found over $1,300 in coins inside the defendant's work vehicle, money that was supposed to be deposited into the city treasury. Further investigation, including a review of Lopez's banking records, revealed a substantial amount of cash deposits. In addition, the defendant made significant cash payments, including a $10,000 down payment on a car and the purchase of two boats, a jet ski and a moped. The complaint further stated that other employees of the department were aware of the defendant's actions.
Lopez will have an initial appearance this afternoon at 1:00 p.m. before U.S Magistrate Judge Jeremiah J. McCarthy.
Lopez is the third employee of the Department of Parking Enforcement to be charged in this case. James Bagarozzo was convicted of stealing over $200,000 from Buffalo parking meters and sentenced to 30 months in prison on August 16, 2013. Bagarozzo was also ordered to pay $210,000 in restitution. Lawrence Charles has also been convicted of stealing over $10,000 from Buffalo parking meters and is awaiting sentencing.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The arrests are the culmination of an investigation on the part Special Agents from the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.South Bend Man Sentenced to Three Years Imprisonment and Ordered to Pay over A Quarter of A Million in Restitution in Tax Evasion CaseRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Robert E. Miller, 60, of South Bend, Indiana, was sentenced by District Judge Jon E. DeGuilio to 37 months of imprisonment, 2 years of supervised release and $264,951.70 in restitution after being found guilty of the felony offense of tax evasion.According to documents filed in this case, Miller committed tax fraud, specifically, eight years of tax payment evasion, during the ten-year period from 1999 through 2009.Miller did so despite being employed and having substantial assets and funds, including more than $2.1 million in adjusted gross income and more than $1.1 million in taxable income.Miller tried to hide his assets and income from the IRS by discontinuing his use of bank accounts in May 2007 and conducting all of his transactions in cash and pre-paid debit cards.
Miller attempted to obstruct justice when he made false statements during questioning by IRS agents when they interviewed him and also when he intentionally lied on material points during his testimony at trial.
This case was the result of an investigation by the Internal Revenue Service.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Seven East Tennessee Residents Sentenced to A Total of 603 Months in Prison for Methamphetamine Conspiracy Operating in Washington CountyRead the Press Release
GREENEVILLE, Tenn. – On Tuesday, Sept. 10, 2013, the Honorable Leon Jordan, U.S. District Judge, sentenced the last of seven defendants for their roles in a methamphetamine manufacturing conspiracy. The individuals were indicted in March 2013 for conspiring to manufacture methamphetamine (meth).
Between January 28 and February 7, 2013 law enforcement agents found meth labs or meth equipment and residue at four sites in Johnson City, including a room at the Fox Motel located on Highway 11E. The conspiracy was active when the indictment was returned on Mar. 12, 2013.
The seven individuals include: Thomas Bugg, 52, of Johnson City, who was sentenced to 92 months in prison; James Brandon Kimes, 27, of Gray, who was sentenced to 200 months in prison; Stephen Eric Burgner, 32, of Johnson City, who was sentenced to 96 months in prison; Monroe Eugene Lowe, 27, of Jonesborough, who was sentenced to 72 months in prison; Allen Casey Story, 28, of Johnson City, who was sentenced to 60 months in prison; Carla Nicole Lowe, 23, of Elizabethton, who was sentenced to 46 months in prison; and Terra Beth Bugg, 41, of Watauga, who was sentenced to 37 months in prison.
U.S. Attorney William C. Killian stated, “Tennessee continues to have one of the highest rates of meth addiction in the United States. Meth has no legitimate uses and it destroys lives, families, and communities. We will continue to devote resources to rid our communities of the scourge of meth by vigorous prosecution and meaningful prison terms.”
Law enforcement agencies participating in the investigation which led to the indictment and subsequent convictions include the Washington County Tennessee Sheriff’s Office, Drug Enforcement Administration, Johnson City Police Department, Elizabethton Police Department, Tennessee Highway Patrol, Tennessee National Guard Counter-Drug Intel, and the Kingsport Police Department. Assistant U.S. Attorney Helen Smith represented the United States.
Rodney Royce Miller Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on September 12, 2013, before U.S. District Judge Donald W. Molloy, RODNEY ROYCE MILLER, a 60-year-old resident of Kalispell, was sentenced to a term of:
- Prison: 120 months, consecutive to sentence in CR-08-103-GF-SEH
- Special Assessment: $100
- Supervised Release: life
MILLER was sentenced in connection with his guilty plea to accessing with the intent to view child pornography.
In an Offer of Proof filed by Assistant U.S. Attorney Cyndee L. Peterson, the government stated it would have proved at trial the following:
On September 21, 2012, a federal probation officer made contact with MILLER in MILLER's van in Flathead County. The probation officer observed MILLER looking at images of child pornography on his notebook computer.
Detectives from the Flathead County Sheriff's Office subsequently obtained a search warrant for the notebook computer. When interviewed, MILLER admitted he used the computer to view child pornography on the Internet.
When the notebook was forensically examined Image files, which included cache and non-cache files depicting child pornography, were located. The examiner also located cache records which were indicative of a user seeking child pornography.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that MILLER will likely serve all of the time imposed by the court. In the federal system, MILLER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Flathead County Sheriff's Office, the Montana Internet Crimes Against Children (ICAC) Task Force, the U.S. Probation, and the Montana Division of Criminal Investigation.
Pine Ridge Woman Sentenced for Assaulting A Tribal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, woman convicted of Assault on a Federal Officer was sentenced on September 12, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Pamela Belt, age 49, was sentenced to 3 years’ probation and was ordered to pay $100 to the Federal Crime Victims Fund and a $250 fine.
On June 10, 2012, near Oglala, Belt physically resisted an Oglala Sioux Tribal officer as he was attempting to arrest her, and she also hit and kicked his car windows in an attempt to get out of the police vehicle. She pled guilty on May 8, 2013.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman prosecuted the case.Pine Ridge Man Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man was indicted by a federal grand jury for allegedly slapping, punching, and kicking his girlfriend at Pine Ridge.
Tobacco was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Michael Tobacco, age 21, was indicted on August 27, 2013, for Assault with a Dangerous Weapon and Assault Resulting in Substantial Bodily Injury to an Intimate Partner or Dating Partner. He appeared before U.S. Magistrate Judge Veronica L. Duffy on September 11, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years’ imprisonment and/or a $250,000 fine. The charges are merely an accusation and Tobacco 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. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.Perpetrators of Nationwide Foreclosure Rescue Scam “Walkawaytoday.Org” Sentenced to Prison TermsRead the Press Release
ALEXANDRIA, Va. – Mark S. Farhood, 49, formerly of San Diego, Cal., and Jason S. Sant, 38, of Lecanto, Fla., were sentenced today for their roles in operating a nationwide online foreclosure rescue scam that went by various names, including Home Advocate Trustees and Walk Away Today, and used various web sites, including walkawaytoday.org and sellfastusa.com, to deceive hundreds of vulnerable, distressed homeowners into surrendering their properties to the company.
Farhood was sentenced to 11 years in prison, followed by 3 years of supervised release. Sant was sentenced to 6 years in prison, followed by 2 years of supervised release. Each was also ordered to forfeit approximately $2.0 million in fraud proceeds to the government, along with various bank accounts and other assets.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Christy L. Romero, Special Inspector General for the U.S. Treasury Department’s Troubled Asset Relief Program, or SIGTARP; and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by United States District Judge Anthony J. Trenga. Farhood and Sant each pleaded guilty to conspiracy charges on May 10, 2013.
According to court records, Farhood and Sant co-owned Home Advocate Trustees, which also went by the names Walk Away Today, First Equity Trustees, Home Security Consultants, Sell Fast USA, Short Sale Buyer, USA Sell House Fast, and USA Rental Housing. They marketed the businesses nationwide as purchasers of distressed real estate and a means by which vulnerable homeowners could avoid foreclosure and the accompanying negative effects on their credit. The companies told homeowners they were in the business of negotiating with lenders to purchase mortgage notes at a discount and falsely claimed to have been in business for seventeen years, to have experienced a 90% success rate in purchasing such notes, and to be the nation’s largest volume buyer of short sale and over-leveraged real estate.
As Sant and Farhood admitted in connection with their pleas, the businesses were a fraud, no such negotiations with lenders ever took place, and the scheme was merely a way for them to take possession of hundreds of residential properties, including homes within the Eastern District of Virginia, at virtually no cost and then reap millions of dollars in profits by renting the homes to unsuspecting tenants.
Farhood and Sant further admitted that as part of the scheme, they submitted fraudulent loan modification applications to mortgage lenders under the Treasury Department’s Making Home Affordable Program in the name of homeowners, without the homeowners’ knowledge or consent. Farhood and Sant used the fraudulent applications to stall foreclosures on the properties under their control and for which no mortgage payments were being made and to maximize the time period during which they could collect rental income.
The homes purportedly sold to Home Advocate Trustees and its related entities ended in foreclosure, harming the participating homeowners and commonly resulting in eviction of the tenants.
This case was investigated by SIGTARP and the FBI’s Washington Field Office. Assistant United States Attorney Paul J. Nathanson prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Patient Recruiter Convicted in Massive Social Security and Immigration Fraud SchemeRead the Press Release
United States Attorney Laura E. Duffy announced that Nawal Talia of Spring Valley pled guilty today and admitted recruiting patients as part of a multi-year fraud scheme to falsify medical certifications to the federal government.
As revealed in her guilty plea, Talia recruited patients for the mastermind of the health care fraud scheme, Dr. Roberto Velasquez. Earlier this year, Velasquez was sentenced to 21 months in prison, and ordered to pay more than $1.5 million in restitution to the Social Security Administration — the largest single restitution order in Social Security’s history.
For the past several years, Talia served as a paid advocate for immigrants seeking assistance in obtaining U.S. citizenship or Social Security benefits. In this role, Talia submitted documents to federal agencies on behalf of her clients, certifying that her clients were mentally disabled. Rather than obtaining benefits legitimately, Talia and Velasquez worked together to falsify medical certifications and fabricate patient histories. In her plea, Talia admitted that she helped Velasquez falsify two different types of disability reports: (1) Medical Certification for Disability Exception Forms (Forms N-648), which are used by the Department of Homeland Security during the naturalization process; and (2) Medical Letters, which are used by the Social Security Administration to award Supplemental Security Income and disability payments. On each of these forms, Talia lied about the length of time her clients had been under the care of Velasquez. In one case, Talia certified that a patient had been treated by Dr. Velasquez for a year, when the patient had actually only met Velasquez once. In another, she filed a Social Security appeal, falsely certifying that the patient had been treated by Dr. Velasquez for 11 months. In reality, Talia simply made up that number so that her client appeared to be eligible for disability benefits, when in fact Talia knew he was not.
The fraud was uncovered through an undercover operation conducted jointly by the Department of Homeland Security, Immigration and Customs Enforcement/Homeland Security Investigations, and the Office of Inspector General, Social Security Administration. Although Talia held herself out as a legitimate patient advocate, the investigation revealed her blatant disregard for federal disability requirements. Investigators established that Talia repeatedly lied about the duration of the treatment in order to create a “track record” that would satisfy reviewers at the Social Security Administration and Citizen and Immigration Services (“CIS”).
This prosecution is a part of the United States Attorney’s ongoing Health Care Fraud initiative. United States Attorney Duffy noted, “Combating health care fraud is a top priority of the Department of Justice. Patient recruiters like Talia help perpetuate fraud when they falsify documents and corrupt the integrity of the system.” The United States Attorney noted that this type of fraud is particularly egregious as it improperly helps undeserving individuals obtain citizenship and other benefits that may then not be available to the truly deserving.
Sentencing was set for December 16, 2013, at 9 a.m. before U.S. District Judge Marilyn L. Huff
DEFENDANT CRIMINAL CASE NO. 13cr3393-H Nawal Talia SUMMARY OF CHARGESCount One - Title 18, United States Code, Section 1546 – False Statements in Immigration Documents
INVESTIGATING AGENCIES
Count Two - Title 42, United States Code, Section 1383a(a)(2) - False Statements in Applications for SSI Disability BenefitsUnited States Immigration and Customs Enforcement’s Homeland Security Investigations
Office of Inspector General, Social Security AdministrationOlathe Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
KANSAS CITY, KAN. - An Olathe man who trafficked in Mexican methamphetamine in the Kansas City, Kan., area faces a potential sentence of 18 years in federal prison, U.S. Attorney Barry Grissom said today.
Lorenzo Sepulveda, 34, Olathe, Kan., pleaded guilty to one count of conspiracy to distribute methamphetamine. In the plea agreement, both parties agreed to recommend a sentence of 18 years in federal prison.
In his plea, Sepulveda admitted he was identified during an investigation initiated by the Bureau of Alcohol, Tobacco, Firearms and Explosives into a methamphetamine distribution ring based in Kansas City, Kan. From May through October 2009 Sepulveda was involved in several transactions in which undercover agents bought methamphetamine from members of the conspiracy. In July 2009, for instance, undercover agents met conspirators in a parking lot of a McDonald’s restaurant and bought $6,750 worth of methamphetamine. Sepulveda told them the methamphetamine had come directly from Mexico.
Sentencing is set for Dec. 16. In addition to agreeing to a recommended 216-month sentence, Sepulveda consented to a money judgment against him of $125,000.
Grissom commended the Drug Enforcement Administration and Special Assistant U.S. Attorney Trent Krug for their work on the case.North Carolina Woman Sentenced for Preparing False Tax Returns and Identity FraudRead the Press Release
The Justice Department and the Internal Revenue Service (IRS) announced that yesterday Leslie Louise Brewster of Durham, N.C. was sentenced to serve 70 months in federal prison for crimes related to preparing false tax returns and identity fraud. She was also ordered to pay restitution to the IRS of $92,910. Brewster was sentenced by Chief U.S. District Judge for the Middle District of North Carolina William Osteen Jr., in Greensboro, N.C.
On Feb. 20, 2013, Brewster pleaded guilty to three felonies relating to her preparation of false tax returns: one count of aiding and assisting the preparation of a false tax return; one count of wire fraud; and one count of aggravated identity theft.
According to court documents, Brewster was the manager of the Burlington, N.C. branch of Nothing But Taxes, a tax return preparation franchise with locations throughout North Carolina. Brewster falsified federal income tax returns for hundreds of Nothing But Taxes clients in order to obtain larger tax refunds for the clients than they were actually entitled to receive. The returns Brewster prepared for clients reported, among other items, false dependents, fictitious businesses and bogus education credits.
Brewster also purchased personal identifying information, including names and Social Security numbers, from members of the community. Brewster used this personal identifying information to claim false dependents on tax returns she prepared for clients, and provided some of the identities she purchased to other return preparers at Nothing But Taxes’ Burlington location for their use in a similar fashion. Brewster typically charged Nothing But Taxes clients a cash fee, above Nothing But Taxes’ normal flat fee for preparation of a return, to prepare a return containing false dependent information.
Recently, two defendants in related cases were also sentenced to prison for tax crimes arising out of the Nothing But Taxes scheme. Saichelle McNeill, a return preparer at the Greensboro branch of Nothing But Taxes, was sentenced to serve 27 months in prison on Aug. 20, 2013. McNeill previously pleaded guilty to wire fraud, aggravated identity theft and aiding and assisting the preparation of a false tax return. Tiffany Rogers, a return preparer at the Burlington branch of Nothing But Taxes, was sentenced to serve 48 months incarceration on Aug. 14, 2013. Rogers previously pleaded guilty to wire fraud, aggravated identity theft, willfully filing a false personal income tax return and aiding and assisting the preparation of a false tax return.
Two other Nothing But Taxes employees, Nikki Brewster and Dawn Williams, are currently awaiting sentencing in the U.S. District Court for the Middle District of North Carolina. Each of them pleaded guilty to wire fraud, aggravated identity theft and aiding and assisting the preparation of false tax returns. Court documents associated with their respective guilty pleas allege that Nikki Brewster was the manager of a Nothing But Taxes branch in Durham, N.C., while Dawn Williams was a return preparer at the Burlington branch.
Court documents in the cases of Nikki Brewster, Dawn Williams, Tiffany Rogers, and Saichelle McNeill stated that those defendants, like Leslie Brewster, also prepared false tax returns for Nothing But Taxes clients, and committed identity theft by claiming false dependents on clients’ tax returns.
“The Justice Department will investigate and prosecute fraudulent tax return preparers and those who steal identities to use in their tax fraud, whether the crime is committed by a single thief or a ring of thieves,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. “The prison sentence handed down today demonstrates that such invasions of personal privacy and theft of public monies will not be tolerated.”
Ripley Rand, U.S. Attorney for the Middle District of North Carolina, said, “We thank the Criminal Investigative Division of the IRS for their hard work in dismantling this tax fraud syndicate. We will continue to hold those accountable who attempt to cheat the government and place the burden of their fraud on lawful taxpayers.”
This case and the related Nothing But Taxes cases are being investigated by special agents of the IRS- Criminal Investigation Division, and are being prosecuted by Assistant U.S. Attorney Frank Chut and Trial Attorney Jonathan Marx of the Justice Department’s Tax Division.
North Carolina Woman Sentenced for Preparing False Tax Returns and Identity FraudRead the Press Release
WASHINGTON – The Justice Department and the Internal Revenue Service (IRS) announced that yesterday Leslie Louise Brewster of Durham, N.C. was sentenced to serve 70 months in federal prison for crimes related to preparing false tax returns and identity fraud. She was also ordered to pay restitution to the IRS of $92,910. Brewster was sentenced by Chief U.S. District Judge for the Middle District of North Carolina William Osteen Jr., in Greensboro, N.C.
On Feb. 20, 2013, Brewster pleaded guilty to three felonies relating to her preparation of false tax returns: one count of aiding and assisting the preparation of a false tax return; one count of wire fraud; and one count of aggravated identity theft.
According to court documents, Brewster was the manager of the Burlington, N.C. branch of Nothing But Taxes, a tax return preparation franchise with locations throughout North Carolina. Brewster falsified federal income tax returns for hundreds of Nothing But Taxes clients in order to obtain larger tax refunds for the clients than they were actually entitled to receive. The returns Brewster prepared for clients reported, among other items, false dependents, fictitious businesses and bogus education credits.
Brewster also purchased personal identifying information, including names and Social Security numbers, from members of the community. Brewster used this personal identifying information to claim false dependents on tax returns she prepared for clients, and provided some of the identities she purchased to other return preparers at Nothing But Taxes’ Burlington location for their use in a similar fashion. Brewster typically charged Nothing But Taxes clients a cash fee, above Nothing But Taxes’ normal flat fee for preparation of a return, to prepare a return containing false dependent information.
Recently, two defendants in related cases were also sentenced to prison for tax crimes arising out of the Nothing But Taxes scheme. Saichelle McNeill, a return preparer at the Greensboro branch of Nothing But Taxes, was sentenced to serve 27 months in prison on Aug. 20, 2013. McNeill previously pleaded guilty to wire fraud, aggravated identity theft and aiding and assisting the preparation of a false tax return. Tiffany Rogers, a return preparer at the Burlington branch of Nothing But Taxes, was sentenced to serve 48 months incarceration on Aug. 14, 2013. Rogers previously pleaded guilty to wire fraud, aggravated identity theft, willfully filing a false personal income tax return and aiding and assisting the preparation of a false tax return.
Two other Nothing But Taxes employees, Nikki Brewster and Dawn Williams, are currently awaiting sentencing in the U.S. District Court for the Middle District of North Carolina. Each of them pleaded guilty to wire fraud, aggravated identity theft and aiding and assisting the preparation of false tax returns. Court documents associated with their respective guilty pleas allege that Nikki Brewster was the manager of a Nothing But Taxes branch in Durham, N.C., while Dawn Williams was a return preparer at the Burlington branch.
Court documents in the cases of Nikki Brewster, Dawn Williams, Tiffany Rogers, and Saichelle McNeill stated that those defendants, like Leslie Brewster, also prepared false tax returns for Nothing But Taxes clients, and committed identity theft by claiming false dependents on clients’ tax returns.
“The Justice Department will investigate and prosecute fraudulent tax return preparers and those who steal identities to use in their tax fraud, whether the crime is committed by a single thief or a ring of thieves,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. “The prison sentence handed down today demonstrates that such invasions of personal privacy and theft of public monies will not be tolerated.”
Ripley Rand, U.S. Attorney for the Middle District of North Carolina, said, “We thank the Criminal Investigative Division of the IRS for their hard work in dismantling this tax fraud syndicate. We will continue to hold those accountable who attempt to cheat the government and place the burden of their fraud on lawful taxpayers.”
This case and the related Nothing But Taxes cases are being investigated by special agents of the IRS- Criminal Investigation Division, and are being prosecuted by Assistant U.S. Attorney Frank Chut and Trial Attorney Jonathan Marx of the Justice Department’s Tax Division.
Nasser Qayed Sentenced for Knoxville-Detroit Scheme Involving Contraband CigarettesRead the Press Release
KNOXVILLE, Tenn. B On Friday, Sept. 13, 2013, Nasser Qayed, 41, of Detroit, Mich., was sentenced by the Honorable Leon Jordan, Senior U.S. District Court Judge, to serve 21 months in federal prison for his convictions of receiving and concealing stolen goods traveling in interstate commerce. Additionally, the court ordered him to pay $121,000 in restitution.
Qayed was a former convenience store operator in Detroit, who participated in a Knoxville to Detroit contraband cigarette smuggling ring. He pleaded guilty in May 2012 to two counts of receiving and concealing stolen goods in interstate commerce.
The conviction of Qayed and others involved in this contraband cigarette smuggling ring was the result of a long-term undercover investigation by the FBI Joint Terrorism Task Force. Assistant U.S. Attorney Jeff Theodore represented the United States.
Multi-State Takedown Targeted National Cocaine Trafficking OrganizationRead the Press Release
ATLANTA – Twelve members of a national cocaine trafficking organization have been charged in a large-scale investigation conducted by the Federal Bureau of Investigation code-named “Operation Holy Trap.”
“Today’s takedown is another chapter in this Office’s ongoing commitment to hold significant narco-traffickers to account and to dismantle their operations and infrastructure,” said United States Attorney Sally Quillian Yates. “Our streets are safer with these serious offenders off them. The arrests also serve as a valuable reminder to those who might use their seemingly legitimate businesses to support narco-traffickers. You are not above the law. You will be prosecuted.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “While the import and distribution of dangerous drugs such as methamphetamines, cocaine, and heroin continue to be carried out by highly organized criminal enterprises covering large territories within the U.S., law enforcement continues to go after these groups in an equally organized manner as demonstrated by the David G. Wilhelm Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force, based in Atlanta. The FBI, as part of this federally led group of local, state, and other federal investigators and analytical staff, brings forward its expertise in helping dismantle these criminal enterprises and seizing their assets. The indictments and arrests resulting from Operation Holy Trap are a result of many months of hard work by this dedicated Strike Force and required much coordination with other law enforcement entities in other states. The cocaine distribution in this case was extensive and the money generated by this group is an indicator as to how active and established this group was in the U.S. The fight to keep our communities safe from this corrosive criminal influence continues and the FBI remains a committed and steadfast partner in this effort.”
According to United States Attorney Yates, the charges, and other information presented in court: For over 18 months, the FBI has been investigating a drug trafficking organization with ties to Georgia, Florida, Massachusetts, Texas, and Louisiana.
The organization is alleged to have been overseen by Edwin Rivera, a/k/a Neno, a/k/a Nano (“Rivera”), a Boston-based drug dealer, who used vehicles outfitted with hydraulic concealed compartment (or traps) to smuggle multiple kilograms of cocaine and hundreds of thousands of dollars throughout the United States. Rivera employed Hector Ramon DeJesus, who operated a seemingly legitimate auto shop in Atlanta, to install the traps in the load vehicles. Juan Manuel Santana Baez, a/k/a “Robin,” worked with and for DeJesus in the trap business, including on vehicles used by Rivera.
Rivera is alleged to have used a syndicate of couriers to transport the organization’s drugs and drug proceeds, including Pedro Angel Morales, a/k/a “Tito;” Glenny Difo; Militza Negron; Jose Ramon Medina Bravo, a/k/a “Lynx;” Jose M. Vellon Rios, a/k/a Javier Luis R Mercado; Jennifer Medina; and Alex Jonathan Tejada Avelino, a/k/a “Jonathan.” Maximo Stiven Bernabel Pena, a/k/a “Pablo,” and Freddy Pena also were members of Rivera’s cocaine trafficking organization.
To date, investigators have seized over 70 kilograms of cocaine and approximately $1,000,000 in drug proceeds.
On July 9, 2013, a federal grand jury in Atlanta returned a five-count indictment charging the following individuals with various drug offenses, including conspiring to traffick over five kilograms of cocaine and substantive drug trafficking charges:Edwin Rivera, a/k/a “Neno,” a/k/a “Nano,” 43, of Hyde Park, Mass.;
- Maximo Stiven Bernabel Pena, a/k/a “Pablo,” 23, of Roxbury, Mass.;
- Juan Manuel Santana Baez, a/k/a “Robin,” 38, of Duluth, Ga.;
- Glenny Difo, 37, of Orlando, Fla.;
- Militza Negron, 41, of Orlando, Fla.;
- Jose Ramon Medina Bravo, a/k/a “Lynx,” 28, of Tamarac, Fla.;
- Jose M. Vellon Rios, a/k/a Javier Luis R Mercado, 32, of Hazelton, Pa.;
- Jennifer Medina, 31, of Gretna, La.;
- Alex Jonathan Tejada Avelino, a/k/a “Jonathan,” 30, of Jamaica Plain, Mass.;
- Freddy Pena, 24, of Jamaica Plain, Mass.; and
- Pedro Angel Morales, a/k/a “Tito,” 49, of Springfield, Mass.
In addition, a criminal complaint was issued against Hector Ramon DeJesus, 67, of Lawrenceville, Ga., charging him with conspiring to traffic over five kilograms of cocaine.
On September 12, 2013, initial searches and arrests were conducted in connection with an unsealed indictment and criminal complaint. Federal, state, and local law enforcement officers fanned out across Atlanta, Ga., Boston, Mass., Scranton, Pa., Orlando and Tamarac, Fla., to seek to arrest the charged defendants. The takedown, which is ongoing, so far has ensnared nine defendants. Over the next two days, initial appearances are scheduled to occur in this District, as well as in the Middle District of Florida and District of Massachusetts.
The investigation of the case was led by FBI agents from the David G. Wilhelm OCDETF-Atlanta Strike Force, which consists of federal, state, and local drug officers and focuses on dismantling international drug organizations operating in the United States. The investigation also included participation from the Strike Force members: the Drug Enforcement Administration (DEA), the United States Marshals Service, the Department of Homeland Security, the Internal Revenue Service-Criminal Investigation (IRS), the Georgia Bureau of Investigation (GBI), Lawrenceville Police, Gwinnett County Sheriff’s Office, Clayton County Police, and Barrow County Sheriff’s Office.
If convicted, the charged defendants face a maximum sentence of up to life imprisonment, as well as fines of over $10 million dollars.
Members of the public are reminded that the indictment and criminal compliant contain only allegations. A defendant is presumed innocent of the charges, and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
Assistant United States Attorneys Ryan Scott Ferber and C. Brock Brockington are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Mount Airy Man Sentenced for Filing False Tax ReturnsRead the Press Release
GREENSBORO, N.C. – A Mount Airy man was sentenced to 30 months of imprisonment for filing false tax returns, announced United States Attorney Ripley Rand.
JEFFREY LEE JOHNSON, 45, of Mount Airy, North Carolina, had pleaded guilty to two counts of filing false tax returns. Johnson was sentenced on September 13, 2013, by United States District Judge Catherine C. Eagles to 30 months in prison followed by one year of supervised release. Judge Eagles also ordered JOHNSON to pay restitution of $2,495,721 to the Internal Revenue Service.
From January 2005 through February 2010, JOHNSON owned and operated Mayberry Auto Parts and Recycling, Inc. (“MAPR”). MAPR was in the business of purchasing scrap metal from individuals and reselling it to larger scrap metal companies. JOHNSON filed tax returns for 2006 and 2007 with gross receipts of $799,228 and $820,000, respectively. JOHNSON knew at that time he filed those returns that he had received hundreds of thousands of dollars in excess of those amounts in both years. The investigation of the Internal Revenue Service confirmed that MAPR earned gross receipts of $4 million in 2006 and $5 million in 2007.
Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service – Criminal Investigative Division, stated that “the successful prosecution of individuals who intentionally conceal income and evade taxes helps instill confidence in the American tax system. Mr. Johnson admitted he deliberately underreported his income, thereby placing an additional burden on the honest taxpayer.” United States Attorney Rand added, “Our office will continue to work effectively in partnership with the Internal Revenue Service to root out fraud and hold accountable those who flout our tax laws.”
JThe case was investigated by the Internal Revenue Service -- Criminal Investigation Division, and prosecuted by Assistant United States Attorney Stephen Inman.
Mitchell Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mitchell, South Dakota, man charged with assault was sentenced on September 11, 2013, by U.S. District Judge Karen E. Schreier.
Horned Eagle was immediately turned over to the custody of the U.S. Marshals Service.
Vincent Michael Horned Eagle, age 23, was sentenced to 12 months in custody.
Horned Eagle was indicted on February 5, 2013, by a federal grand jury for Assaulting, Resisting or Impeding a Federal Officer. He pled guilty on June 18, 2013.
The charge stems from an incident in August of 2012 when Horned Eagle assaulted an officer by head-butting her while she attempted to place him under arrest.
This case was investigated by U.S. Department of Interior, Bureau of Indian Affairs Law Enforcement Services. Assistant U.S. Attorney Thomas J. Wright prosecuted the case.Missouri Man Ordered Detained on Federal Human Trafficking ChargesRead the Press Release
PROVIDENCE, R.I. – Stephen Ardrey, 30, of Springfield, Mo., was ordered detained today by U.S District Court Magistrate Judge Patricia A. Sullivan during his initial appearance in federal court on charges of sex trafficking children and transportation of a minor with intent to engage in criminal sexual activity.
Ardrey was taken into federal custody on Thursday as a result of information developed during an investigation by the Coventry and West Greenwich, R.I., Police Departments, Medfield, Mass., Police Department, and agents from Homeland Security Investigations into the disappearance of a 17-year-old female who was reported missing on September 9, 2013, from the town of Medfield and who was located on Thursday in Coventry, R.I.
United States Attorney Peter F. Neronha acknowledged the outstanding efforts of local, state and federal law enforcement agencies in Rhode Island and Massachusetts working collaboratively to ensure the safe return of the victim to her family and for their efforts which led to the arrest and detention of Stephen Ardrey.
In addition, U.S. Attorney Neronha acknowledged and thanked the individual who alerted Coventry Police when he happened upon the victim and the defendant as they walked along a Coventry roadway. “This individual’s quick response by notifying law enforcement was paramount to putting an end to the anguish the victim’s family was experiencing not knowing their daughter’s whereabouts. By smartly alerting law enforcement, he furthered the investigation which led to the arrest and detention of the defendant.”
If convicted of sex trafficking children and transportation of a minor with intent to engage in criminal sexual activity, Ardrey faces statutory penalties of a minimum mandatory 10 years up to life in federal prison; 5 years to lifetime supervised release following imprisonment; and up to a fine of $250,000.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Adi Goldstein.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Mike Yassine Receives Three Years in Federal Prison in Austin Tax CaseRead the Press Release
In Austin this morning, U.S. District Judge Sam Sparks sentenced 41-year-old Hussein Ali “Mike” Yassine, to three years in federal prison and ordered him to pay over $2.5 million restitution to the Internal Revenue Service for engaging in a tax fraud scheme using his Austin nightclubs. Judge Sparks ordered that the three year term of imprisonment run consecutive to the 151–month prison term Yassine is currently serving for money laundering.
On February 6, 2013,Yassine pleaded guilty to one count of procuring the preparation of a false Income Tax Return. By pleading guilty, Yassine admitted that in October 2010, he provided a professional tax preparer with false information to be included in Yassine’s 2009 federal Income Tax Return. According to court documents, figures provided by Yassine understated by hundreds of thousands of dollars the actual gross receipts generated by his downtown Austin night clubs--Spill, Qua, Kiss & Fly, Pure and Malaia—in 2009.
In January, Yassine was sentenced to 151 months in federal prison after a jury convicted him on money laundering charges. The jury found that in 2008 and 2009, Yassine used several business establishments, including the above mentioned night clubs, to launder over $200,000 in cash, which he believed to be the proceeds of narcotics trafficking.
This investigation was conducted by agents and investigators with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Austin Police Department together with the Drug Enforcement Administration, Texas Attorney General’s Office, Texas Alcoholic Beverage Commission and the Texas Comptroller’s Office. Assistant United States Attorneys Gregg Sofer and Alan Buie prosecuted this case on behalf of the Government.
Maryland Man Convicted of Alien SmugglingRead the Press Release
ALBANY, NEW YORK – A federal jury in Albany returned its verdict following the two-day trial of GUILLERMO ANTONIO SUAREZ, 48, of Gaithersburg, Maryland, announced United States Attorney Richard S. Hartunian and Customs and Border Protection Director of Field Operations James T. Engleman. The jury found SUAREZ guilty of all three felony counts charged in the indictment: (1) alien smuggling, (2) attempting to transport an illegal alien, and (3) inducing an alien to illegally enter the United States. He faces up to 10 years in prison on the first count, up to 5 years in prison on the other two counts, a $250,000 fine on each count, and up to three years of supervised release. SUAREZ is scheduled to be sentenced on January 6, 2014, before the Honorable Thomas J. McAvoy, United States District Judge, in Albany, New York.
SUAREZ, a lawful permanent resident, was arrested on November 19, 2012, in Fort Covington, New York, after he helped his nephew, an alien, enter the United States from Canada outside a designated port of entry. SUAREZ dropped his nephew off on the Canadian side of the border and entered the United States through the Fort Covington port of entry by car while his nephew crossed the border through the woods, on foot, approximately three miles east of the port of entry. During inspection, Customs and Border Protection Officers found maps of the border and luggage belonging to SUAREZ’S nephew inside SUAREZ’S car.
This case was investigated by U.S. Customs and Border Protection and the U.S. Border Patrol. The case was prosecuted by Assistant United States Attorneys Jeffrey C. Coffman and Edward P. Grogan. Further questions may be directed to Assistant U.S. Attorney Elizabeth C. Coombe at (518) 431-0247.
Liverpool Woman Pleads to 11 Counts of Fraud and Identity TheftRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced today that Patricia Harrington, 50, of Liverpool, New York, entered guilty pleas in U.S. District Court, in Syracuse, to multiple counts of filing false federal tax returns, wire fraud and aggravated identity theft. Harrington faces a maximum sentence of 20 years and a fine of $250,000. Sentencing has been scheduled for January 29, 2014 in U.S. District Court. She has been ordered detained in the custody of the U.S. Marshal pending sentencing.
In entering her guilty pleas before the Hon. Glenn T. Suddaby, Harrington admitted that she filed six false federal tax returns under her own name and names of relatives, without their knowledge, for tax years 2010 and 2011. She wrongfully received almost $24,000 in tax refunds from the Internal Revenue Service over a two year period.
She also pled guilty to four counts of federal wire fraud in connection with another scheme she devised to obtain Unemployment Insurance benefits from the New York State Department of Labor. In implementing this scheme, she opened four separate accounts at various local banks, via the internet, using personal identification information taken from other individuals without their knowledge. She thereafter filed false unemployment benefits claims, via the internet, causing unemployment benefits to be deposited into the fraudulent bank accounts. Under this scheme, she netted almost $15,000 in New York State unemployment benefits.
Harrington also pled guilty to a single count of Aggravated Identity Theft admitting that she knowingly and wrongfully used the personal identification information of another person to carry out her wire fraud scheme. The aggravated identity theft conviction carries a mandatory sentence of two years incarceration consecutive to any other sentences imposed in the case.
At the time the current offenses were committed, Harrington was on federal supervised release following her 2008 conviction in Pennsylvania for Identity Theft that resulted from a scheme where she wrongfully obtained more than $100,000 in student loans from the Pennsylvania Higher Education Assistance Program.
This prosecution resulted from an investigation conducted by the Onondaga County Sheriff’s Department, the New York State Department of Labor, the Syracuse U.S. Probation Office, the Internal Revenue Service, Criminal Investigations, Syracuse Office, and the Onondaga County District Attorney’s Office. The case was prosecuted by Executive Assistant U.S. Attorney John G. Duncan. For further information contact Mr. Duncan at 315-448-0672.
Lee County Man Pleads Guilty to Distributing Child PornographyRead the Press Release
Fort Myers, Florida - Acting United States Attorney A. Lee Bentley, III announces that Charles Allen Nave, III (39, Fort Myers) today pleaded guilty to distributing child pornography. Nave faces a mandatory minimum term of 5 years, up to a maximum of 20 years in federal prison.
According to the plea agreement, on January 31, 2013, Nave knowingly distributed child pornography over the Internet to an undercover agent that he met in an online chat room. Nave sent the undercover agent four emails with attachments depicting images of child pornography. Following the execution of a search warrant, a forensic analysis of Nave’s computer revealed more than 300 images and 20 videos of child pornography.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), along with the Sanibel Police Department, the Fort Myers Police Department, the Florida Department of Law Enforcement, and the Lee County Sheriff's Office. It is being prosecuted by Assistant United States Attorney Yolande G. Viacava.
It is another case 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.
Leading Member of Drug and Weapons Trafficking Ring Sentenced to 20 Year Prison TermRead the Press Release
One of the leaders of a Mexican cartel connected to a drug and gun trafficking ring was sentenced today in U.S. District Court in Seattle to 20 years in prison, announced U.S. Attorney Jenny A. Durkan. VICTOR BERRELLEZA-VERDUZCO, 24, of Everett, Washington, pleaded guilty in April 2013 to Conspiracy to Distribute Controlled Substances; Conspiracy to Commit Money Laundering; Conspiracy to Interfere with Commerce by Robbery; and Conspiracy to Possess Firearms in Furtherance of a Drug Trafficking Crime. BERRELLEZA-VERDUZCO and his brother Cristian were the leaders of a large Mexico based drug and gun trafficking ring with ties to the violent Beltran-Leyva drug cartel. At sentencing U.S. District Judge Robert S. Lasnik said BERRELLEZA-VERDUZCO participated in “dangerous and serious crimes.”
“This case shows how much our community is impacted by the crime and violence spread by international drug cartels,” said U.S. Attorney Jenny A. Durkan. “I congratulate the dedicated agents and officers who not only intercepted the weapons destined for the cartel leaders, but also moved in to stop drug related violence being planned in our region.”
According to records filed in the case, VICTOR BERRELLEZA-VERDUZCO was involved in both the smuggling of meth and heroin from Mexico into the United States and in efforts to smuggle guns back to Mexico. In one phone call, monitored by law enforcement, VICTOR BERRELLEZA-VERDUZCO discusses obtaining a rifle with a grenade launcher, similar to the weapon in the movie “Scarface.” VICTOR BERRELLEZA-VERDUZCO was involved not only in gun and drug trafficking, but in efforts to use violence to collect drug debts or rip off rival drug trafficking organizations. Timely intervention by law enforcement stopped one home invasion robbery.
“This sentencing illustrates that violent drug smugglers will ultimately pay a high price for their crimes,” said Brad Bench, Special Agent in Charge of ICE HSI in Seattle. “These illegal drugs destroy lives and ruin our communities at home, and illegal weapons smuggled to Mexico add to the cartels’ reign of violence. This defendant seriously compromised the public’s safety and well-being in both countries. By sharing information and resources, HSI and its law enforcement partners have sent a strong message that this type of activity will not be tolerated.”
VICTOR BERRELLEZA-VERDUZCO was arrested at a Utah stash house in April 2012 with more than a kilo of heroin.
In asking for a long prison sentence prosecutors wrote to the court that VICTOR BERRELLEZA-VERDUZCO “was a leading member of a violent drug and weapons trafficking conspiracy, with direct ties to a violent Mexican cartel… during the wire, Defendant’s father was intercepted discussing having just met the leader of the cartel, and Defendant’s brother Cristian was intercepted speaking with another very-highly placed cartel figure…. Victor and his family sent large amounts of cash back to cartel figures in Mexico, and at least attempted to move military-style firearms back to those same figures. Threats of violence were a frequent feature of this organization’s activities.”
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The case was investigated by the ICE’s Homeland Security Investigations, the Bureau of Alcohol, Tobacco and Firearms (ATF), the Drug Enforcement Administration (DEA), the Lake Stevens Police Department, the Snohomish Police Department, Washington State Patrol, the Snohomish Regional Drug Task Force and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Vince Lombardi.
Lancaster Man Sentenced for Running Armed Drug OrganizationRead the Press Release
ALLENTOWN – Keith Martin Thompson, 33, of Lancaster, PA, was sentenced today to 270 months in prison in a drug conspiracy case. Thompson, a/k/a “Keefer,” was the leader of a large-scale cocaine and crack cocaine distribution organization in Lancaster from between at least 2005 and his arrest in January of 2011 on local charges. In addition to the prison term, Thompson must pay a fine of $2,400, a special assessment of $1,400, and complete 10 years of supervised release.
Thompson was federally indicted on February 15, 2011 along with 11 co-defendants, also from Lancaster. The drug organization run by Thompson would routinely purchase wholesale quantities of illegal drugs, including cocaine and cocaine base (“crack”) from suppliers in Philadelphia, New York, and elsewhere. They distributed the drugs to customers on the streets of Lancaster and Harrisburg, PA, and the areas surrounding those cities. Thompson’s co-defendants sold the drugs for Thompson and also sold some of the drugs to their own customers. At least three of the drug dealers routinely carried guns to protect their drugs and the money they made from selling the drugs.
Part of the drug organization’s business model included renting dozens of vehicles for members of the organization to use for travel to New York and Philadelphia to pick up multi-kilogram quantities of drugs. Some of the drugs were stored at a residence in the 2000 block of Swarr Run Road, Lancaster, Pennsylvania. Cocaine deals were also conducted in the parking lots of retail businesses, including a baby goods store, an apartment complex, and a bar in Lancaster.
Thompson pleaded guilty on April 6, 2013 to 12 counts including conspiracy to distribute 50 grams or more of cocaine, admitting that 20 kilograms of crack cocaine and 50 kilograms of cocaine were distributed in furtherance of the criminal activity jointly undertaken by him and his associates. Thompson also pleaded guilty to two counts of distribution of cocaine, five counts of distribution of cocaine base (“crack”), one count of distribution of 28 grams or more of cocaine base (“crack”), one count of possession with intent to distribute cocaine, one count of possession with intent to distribute 500 grams or more of cocaine, and one count of possession of a firearm by a convicted felon.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (Reading), the Federal Bureau of Investigation (Harrisburg), the Lancaster County Drug Task Force, the City of Lancaster Police Department, and the Manheim Township Police Department. It is being prosecuted by Assistant United States Attorney Mark S. Miller.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Lake Ariel Man Sentenced ForRead the Press Release
Receipt And Distribution Of Child Pornography
The United States Attorney's Office for the Middle District of Pennsylvania, announced that a Lake Ariel man was sentenced today in federal court on a charge of receipt and distribution of child pornography.
According to United States Attorney Peter J. Smith, United States District Court Senior Judge A. Richard Caputo sentenced Keith Wandel, age 42, of Lake Ariel, Lackawanna County, to 210 months of imprisonment and a lifetime of supervised release. Wandel is also ordered to comply with the registration requirements of the Sexual Offender Registration Act (Adam Walsh Act).
Wandel was arrested on March 12, 2013 and charged with the receipt and distribution of child pornography. The criminal Information sets the time period for the offenses at various times between January 2007 and March 2013.
The case against Wandel stems from an investigation by the Federal Bureau of Investigation and the Lackawanna County District Attorney’s Office – Internet Crimes Against Children Task Force. Wandel received and shared child pornography images and videos. A forensic examination of Wandel’s computer revealed thousands of the images and videos.
The 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.
Prosecution was assigned to Assistant United States Attorney Michelle Olshefski.
Kyle Lee Fulmer 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 11, 2013, before U.S. District Judge Sam E. Haddon, KYLE LEE FULMER, a 29-year-old resident of Colstrip, was sentenced to a term of:
- Prison: 30 months
- Special Assessment: $100
- Supervised Release: 3 years
FULMER was sentenced in connection with his guilty plea to involuntary manslaughter.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On September 19, 2012, at approximately 2:30 a.m., law enforcement received a call about a one-vehicle rollover crash on South Tongue River road, near Ashland, on the Northern Cheyenne Indian Reservation. The first officer on scene, a deputy from Rosebud County, identified FULMER as the driver of the Chevy pickup involved in the crash. FULMER, who was ejected from the truck, admitted that he was the driver and that he had been drinking. The deceased passenger was found in the passenger seat inside of the pickup wearing a seat belt. The passenger died of multiple acute blunt traumatic injuries to the upper body.
FULMER was interviewed and admitted that he was driving his pickup on South Tongue River road. He lost control of the pickup, drove through a barbed wire fence, rolled down an embankment, and ended up upright in a field. There were beer cans and bottles near the truck. He had been drinking alcohol prior to the crash. His BAC was .137. This analysis was performed on a sample of FULMER's blood taken some hours after the crash.
FULMER is a non-Indian, but the victim was an enrolled member of the Northern Cheyenne Tribe.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that FULMER will likely serve all of the time imposed by the court. In the federal system, FULMER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Bureau of Indian Affairs.
Kingston Man Sentenced for Illegally Cutting TimberRead the Press Release
COEUR D’ALENE – Norman Leroy Bogart, 51, of Kingston, Idaho, was sentenced in federal court yesterday to three years of probation for illegally cutting timber on national forest lands, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Robert H. Whaley also ordered Bogart to pay $1,700 in restitution. He pleaded guilty to one felony count of willful injury or depredation of property of the United States on June 24, 2013.
According to the plea agreement, Bogart admitted that between April and October 2012, he illegally cut and hauled timber from an area within the Idaho Panhandle National Forests, near his home in Kingston, Idaho. The U.S. Forest Service initiated an investigation after discovering that 40 green trees had been cut within the one area. U.S. Forest Service investigators used a deer camera to capture Bogart’s vehicle traveling to and from the cut site.
On October 3, 2012, the U.S. Forest Service executed a search warrant at Bogart’s residence and seized more than 58 cords of timber cut into firewood. One pile was estimated to be 40 feet long, 10 feet wide and 10 feet tall, according to the plea agreement. Investigators determined that most of the timber was green when cut. Investigators matched some of the larger timber seized from Bogart’s property to several stumps at the cut location within the Idaho Panhandle National Forests.
The case was investigated by the U.S. Forest Service, with the assistance of the Idaho State Police, the North Idaho Violent Crimes Task Force, and the Shoshone County Sheriff’s Office.
Kewa Pueblo Man Pleads Guilty to Federal Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Lester Nieto, 28, a member and resident of Kewa Pueblo, pleaded guilty this morning to a child sexual abuse charge under a plea agreement with the U.S. Attorney’s Office.
Nieto was arrested by the BIA on March 5, 2013, based on an indictment charging him with sexual abuse of a minor or ward between the ages of 12 and 16 years. According to the indictment, Nieto committed the offense on Jan. 1, 2012, in a location within Kewa Pueblo. During today’s hearing, Nieto pleaded guilty to the indictment and admitting engaging in a sexual act with a child who had attained the age of 12 years but had not attained the age of 16 years.
[Nieto was remanded into federal custody after entering his guilty plea and remains detained pending his sentencing hearing, which has yet to be scheduled.] At sentencing, Nieto faces a maximum penalty of 15 years in prison and five years of supervised release. He will be required to register as a sex offender after he completes his prison sentence.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Kenneth Mark Enge 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 9, 2013, before U.S. District Judge Sam E. Haddon, KENNETH MARK ENGE, a 36-year-old resident of Billings, was sentenced to a term of:
- Prison: 37 months
- Special Assessment: $100
- Supervised Release: 3 years
ENGE was sentenced in connection with his guilty plea to being a felon-in-possession of a firearm.
In an Offer of Proof filed by Assistant U.S. Attorney Brendan P. McCarthy, the government stated it would have proved at trial the following:
In 2004, ENGE was convicted of felony assault with a weapon in the Montana Thirteenth Judicial District Court and was therefore prohibited from possessing firearms or ammunition.
On August 27, 2012, Billing Police Department officers responded to a report of a disturbance involving a firearm in the area of the 600 block of South 35th Street in Billings. Upon their arrival, they found ENGE and another individual in the yard of home on South 35th Street. ENGE failed to show his hands to the officers and fled on foot towards the alley. Officers saw ENGE throw a dark object, believed to be a firearm, into some bushes on the east side of the front yard. After he threw the gun, ENGE then came back to the officers and was arrested. A Hi-Point, 9mm semi-automatic pistol containing seven rounds of ammunition in the magazine and one round in the chamber was found in the bushes.
ENGE first denied that he had a gun, then claimed that he had a pellet gun. The other individual that was in the yard admitted that ENGE did have the gun, and that he threatened to shoot her father while the two were arguing at that location. ENGE and the other individual talked on recorded jail calls about setting up a story about the gun being a pellet gun and possibly contacting the other individual's dad to get him to say that he did not see a gun. In the jail call, they also spoke about how ENGE did possess the firearm and how the officers did observe ENGE throw the firearm in the bushes. During a different phone conversation between ENGE and a different individual, ENGE described how someone else acquired the firearm and gave it to ENGE.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that ENGE will likely serve all of the time imposed by the court. In the federal system, ENGE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.