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12 September 2013
White Bear Lake Felon Pleads Guilty to Possessing A Nine-millimeter PistolRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a 25-year-old White Bear Lake felon pleaded guilty to possessing a nine-millimeter, semi-automatic pistol. On September 11, 2013, Marquis Leval Cotton pleaded guilty to one count of being a felon in possession of a firearm. Cotton, who was indicted on December 3, 2013, entered his plea before United States District Judge Donovan W. Frank.
In his plea agreement, Cotton admitted that on April 30, 2012, he possessed the pistol, which was recovered by the Minneapolis Police Department.
Because he is a felon, Cotton is prohibited under federal law from possessing a firearm or ammunition at any time. His prior Chisago County convictions include fourth-degree assault (twice in 2010) and criminal damage to property (2010). In 2005, Cotton was convicted in Anoka County for aggravated robbery. Because those convictions constituted crimes of violence, Cotton will now be subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison for anyone with such a record who is subsequently convicted in federal court for being a felon in possession of a firearm or ammunition.Judge Frank will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Minneapolis Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Richard Newberry.
The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than two dozen serious habitual criminals through Project Exile Minneapolis.Two Men Indicted in Robbery at Red Robin Restaurant in TopekaRead the Press Release
TOPEKA, KAN. - Two men have been indicted on federal charges in connection with a robbery at a Red Robin restaurant in Topeka, U.S. Attorney Barry Grissom and Shawnee County District Attorney Chad Taylor announced today.
Derick Renee Crawford, 23, and Travis Jeremy Coffman, 35, both who are in federal custody, are charged with one count of robbery, one count of brandishing a firearm in the robbery, and one count each of unlawful possession of a firearm after a felony conviction.
The indictment alleges that on Aug. 18, 2013, Crawford and Coffman robbed the Red Robin Restaurant at 6230 S.W. Sixth Street in Topeka. According to court documents, Crawford and Coffman are alleged to have held the employees of the restaurant at gunpoint and threatened to kill them.
Grissom said that federal prosecutors are working with the Shawnee County District Attorney, the Topeka Police Department and the FBI on the case as part of a coordinated fight against violent crime.
“By working together, we are sending a message,” Grissom said. “Topeka is not intimidated. We will not be held at gunpoint. We will not live in fear. Armed criminals will be caught. They will be prosecuted. And if they are convicted they will go to prison.”
If convicted, the defendants face a maximum penalty of 20 years in federal prison and a fine up to $250,000 on the robbery count; a penalty of not less than seven years – consecutive to the sentence on the robbery count – and a fine up to $250,000 on the charge of brandishing a firearm; and a maximum penalty of 10 years each on the charge of unlawful possession of a firearm by a convicted felon.
The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.Two Individuals Plead Guilty to Securities Kickback SchemeRead the Press Release
BOSTON – In two related, but separate proceedings, an executive of two publicly-traded companies and an advisor, pleaded guilty today to using kickbacks in order to trigger investments in thinly-traded stocks.
Seijin Ki, 42, of Toronto, Canada pleaded guilty to wire and mail fraud arising out of his participation in a deal that was part of an undercover FBI operation. Ki admitted to paying secret kickbacks to an investment fund representative in exchange for having the investment fund buy stock in a two publicly-traded companies, Lightlake Therapeutics, Inc. and Church & Crawford, Inc. Ki was an executive with both companies. The kickbacks were concealed through the use of sham consulting agreements and other fraudulent documents. What Ki did not know was that the purported investment fund representative was actually an undercover agent.
Kelly Black-White, 52, of Mesa, Ariz. pleaded guilty to conspiracy to commit securities fraud and wire fraud arising out of her role in a similar deal that was part of the same undercover FBI operation. Black-White, the operator of Premier Funding, Inc. and Premier Services, Inc. provides investor and public relations services to publicly-traded companies. Black-White admitted to referring executives of publicly-traded companies to the investment fund representative so that those executives could enter into the kickback arrangement. In exchange, Black-White accepted a portion of the kickbacks paid by the executives.
The pleas followed a year-long investigation focusing on preventing fraud in the micro-cap stock markets. Microcap companies are small publicly-traded companies whose stock often trades at pennies a share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the Securities and Exchange Commission.
Ki and Black-White are two of 15 defendants charged criminally in this undercover operation. Thirteen of those charged, including Ki and Black-White, pleaded guilty and two were convicted after trial. Two defendants are scheduled for trial in October 2013.
United States District Court Judge William G. Young scheduled sentencing for Ki for Dec. 9, 2013. Black-White is scheduled to be sentenced by US District Court Judge Denise J. Casper on Jan. 29, 2014.
The statutory maximum penalties for the securities fraud conspiracy charges are 25 years in prison, three years of supervised release and a $250,000 fine and the statutory maximum penalties for mail and wire fraud are 20 years in prison, three years of supervised release and a $250,000 fine.
The Securities and Exchange Commission, which conducted a parallel civil investigation alongside the FBI undercover operation, cooperated with criminal authorities in bringing these charges as well as those against the other defendants.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, announced the conviction today. The case is being prosecuted by Assistant U.S. Attorneys Sarah E. Walters, Vassili Thomadakis and Eric Christofferson of Ortiz’s Economic Crimes Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Two Chicago Area Men, Both Charged with Manufacturing Child Pornogrphy, Arrested in Separate, Unrelated Federal CasesRead the Press Release
CHICAGO ― Two Chicago area men have been arrested on separate, unrelated federal charges alleging that they manufactured child pornography, federal law enforcement officials announced today.
In one case, JOHN GABRIEL, 77, of Joliet, was arrested early today at his home without incident by FBI agents. Gabriel was charged with one count of manufacturing child pornography and one count of obstruction of justice in a two-count federal grand jury indictment that was returned yesterday and unsealed upon his arrest. Gabriel pleaded not guilty today before U.S. Magistrate Judge Geraldine Soat Brown in Federal Court in Chicago, and he remains in custody pending a detention hearing at 1:30 p.m. on Monday.
In the second case, MARK BARRETO, 35, of Elmwood Park and formerly of Chicago, was arrested yesterday at his home without incident by U.S. Postal Inspection Service agents. Barreto was charged with two counts of manufacturing child pornography, three counts of transporting child pornography, and one count of possessing child pornography in a six-count federal grand jury indictment that was returned on Tuesday. Barreto pleaded not guilty today before U.S. District Judge Charles Kocoras, and he remain in custody pending a detention hearing next week.
Manufacturing child pornography carries a mandatory minimum sentence of 15 years and a maximum of 30 years in prison and a $250,000 fine.
Gary S. Shapiro, United States Attorney for the Northern District of Illinois, announced the Gabriel case with Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation, and the Barreto case with Tony Gómez, Special Agent-in-Charge of the U.S. Postal Inspection Service in Chicago.
In the Gabriel case, the indictment alleges that he manufactured child pornography with a minor female in July 2012 in Will County. The obstruction count alleges that Gabriel destroyed computer files when FBI agents executed a search warrant his residence on Aug. 14, 2012.
The Gabriel investigation was conducted by the FBI’s Child Exploitation Task Force. The task force is part of a nationwide effort known as the Innocence Lost National Initiative targeting those involved in the commercial sexual exploitation of children in the United States. In Chicago, the CETF is comprised of FBI special agents and representatives from the Chicago Police Department, the Cook County Sheriff's Office, and the Cook County State’s Attorney’s Office.
In the Barreto case, the indictment alleges that he manufactured child pornography with two different minor females, one in February through July 2012, and the other in June and July 2012. It further alleges that he transported images depicting child pornography on dates in April and July 2012, and that he possessed child pornography on his computer when postal inspectors executed a search warrant at his residence in Chicago last October.
The Barreto investigation was conducted by the U.S. Postal Inspection Service, together with the Bolingbrook and Naperville police departments and the Will County State’s Attorney’s Office.
In addition to the penalties for manufacturing child pornography, if convicted, Gabriel also faces a maximum sentence of 20 years in prison for obstruction of justice. Barreto, if convicted, also faces a mandatory minimum of five years and a maximum of 20 years in prison on each count of transporting child pornography, and possessing child pornography carries a maximum of 10 years in prison. Both defendants also face a maximum fine of $250,000 on each count. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
An indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Barreto Indictment
Gabriel IndictmentTwo Akron Men Indicted on Methamphetamine ChargesRead the Press Release
Two Akron men were indicted on charges of possession with intent to distribute more than two kilograms of methamphetamine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Robert E. Long, age 34, and Demarcus Golden, age 23, were also indicted on charges of use of the mail in interstate commerce to transport the drugs from Washington to Ohio via the United States Postal Service.
The defendants, while in another state, mailed an Express Mail box to themselves to an address in the Akron, Ohio area which contained approximately 10,196 pills of methamphetamine.
The indictment resulted from an investigation conducted by the United States Postal Inspectors from Cleveland and Tacoma, Washington, the Department of Homeland Security, the Cleveland Police Department and Akron Police Department. The case is being prosecuted by Assistant United States Attorney Teresa Dirksen.
If convicted, their sentence will be determined by the Court after review of factors unique to this case, including prior criminal records, if any, their role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.Twice Convicted Child Rapist Pleads Guilty to Online Distribution of Child PornographyRead the Press Release
WILMINGTON, Del. – Sean Lawrence, age 40, of Kansas City, Missouri, pled guilty today to Transportation of Child Pornography, in violation of federal law. Charles M. Oberly, III, United States Attorney for the District of Delaware, announced the guilty plea following a hearing in the United States District Court for the District of Delaware.
Lawrence was previously convicted in Missouri in 1995 and 2005 of sodomizing two young boys. He was sentenced to five years in prison for each offense and was required to register as a sex offender upon his release.
As a result of his prior convictions for child sex offenses, Lawrence faces enhanced sentencing penalties under federal law, including a mandatory minimum sentence of fifteen years, and a maximum sentence of forty years, in prison. Lawrence also faces a term of supervised release following his prison sentence of five years to life, and will be required to register as a sex offender in any U.S. jurisdiction in which he lives, works, or attends school. Lawrence will be sentenced on January 6, 2014 by United States District Judge Sue L. Robinson.
According to statements made and documents filed in court, Lawrence came to the attention of a Wilmington-based Homeland Security Investigations special agent in February 2013, during an online undercover investigation into non-public, peer-to-peer networks being used to distribute child pornography. Lawrence provided the undercover agent, who was posing as a man interested in trading images of child pornography, with access to his non-public, peer-to-peer network. The undercover agent then downloaded 11 video files of child pornography from Lawrence’s computer.
During the investigation, law enforcement agents determined that Lawrence was distributing child pornography from various locations via a wireless mobile device. On February 14, 2013, Special Agents of the Wilmington, Delaware and Philadelphia HSI offices partnered with Kansas City-based agents to apprehend Lawrence while he was actually transmitting and receiving images of child pornography via the Internet. The local agents conducted simultaneous online sessions with Lawrence in an effort to geo-locate him. Data associated with those online sessions indicated that Lawrence was then accessing the Internet from the second floor of Metropolitan Community College Library, in Kansas City, Missouri. The local agents quickly relayed this information to the Kansas City-based HSI Special Agents, who then found Lawrence in the back corner of the campus library. Lawrence had an open laptop in front of him and was downloading a video of child pornography set to music when he was apprehended.
A subsequent forensic examination of computer equipment seized from Lawrence in the library and at his residence resulted in the discovery of over 10,000 still images and 200 videos of child pornography that Lawrence had downloaded to those devices. The depictions of child pornography featured mostly prepubescent boys engaged in sexual acts with adult males or other boys. A number of the files depict violence, sadistic or masochistic abuse or bondage.
During an interview with law enforcement agents, Lawrence stated that he had traded hundreds of child pornography images and videos via file sharing programs and email each day since 1999, except during his time in prison. Defendant estimated that he has traded 100-1,000 images of child pornography a day since 1998-1999. He further estimated that he traded child pornography files with an average of about 1-3 people per day via email. Lawrence also told the agents that he went to the Metropolitan Community College campus approximately 3-4 days a week to use the wireless Internet to receive and distribute child pornography. Lawrence said that he also utilized the wireless networks at the public library, and in McDonalds and Burger King locations to distribute and receive child pornography.
This case is being investigated by the Department of Homeland Security, Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Edward J. McAndrew.
Three More Defendants Sentenced in Sadomasochistic Sex Trafficking ConspiracyRead the Press Release
Human Trafficking Rescue Project
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three more defendants were sentenced in federal court today for their roles in the sex trafficking of a young woman who was coerced into being a sex slave for several years while she was tortured in a trailer home located in a wooded area in Lebanon.
Michael Stokes, also known as “The Rodent,” 65, of Lebanon, Mo., and James Noel, 47, of Springfield, Mo., were each sentenced to five years in federal prison without parole in separate hearings before U.S. District Judge Dean Whipple. Marilyn Bagley, 48, of Lebanon, was sentenced to five years of probation.
The court also ordered that $738,250 in total restitution must be paid to the victim. Each defendant is individually liable for $123,041, or one-sixth of the total amount.
On Dec. 6, 2012, Marilyn Bagley pleaded guilty to her role in the conspiracy to commit sex trafficking by force, fraud or coercion. Marilyn Bagley admittedly knew that other individuals came to the residence to engage in sexual conduct and sadistic acts on the female victim (identified in court documents as FV). Over a six-year period, FV endured sadistic acts of torture, many of which were photographed and videotaped. FV would be punished if she did not do as instructed. Several individuals provided bondage pornography, meat, cigarettes, and cash, among other items, in exchange for the sessions involving sexual conduct and sadistic acts on FV.
The government stated in court at the time of her guilty plea that Marilyn Bagley is considered in a separate category from the other defendants in this case because she was a victim of extensive physical and emotional abuse by her husband, co-defendant Edward Bagley, Sr., also known as “Master Ed,” 46, for over 25 years prior to her criminal conduct and participation in the conspiracy. Her participation in the criminal conduct resulted in the abuse being redirected away from her and to the victim.
Stokes pleaded guilty on Jan. 5, 2012, to participating in the sex trafficking conspiracy. Stokes became familiar with FV in 2006 when he received pictures of her over the Internet in which she was naked with whip marks over her body. Stokes was told that the victim was a slave for “life” who was tortured for hours at a time and was required to do “everything and anything” she was told. After a few weeks of chatting online, Edward Bagley brought the victim to Stokes’ house so she could do a “demo” for him. When they arrived at Stokes’ residence, bringing a duffle bag of torture devices with them, FV was instructed to “put on a show for us.” FV was naked, wearing only dog collars and ankle collars with locks. Stokes was asked whether he wanted to have sex with her. Stokes said “yes” and he had sex with FV.
Stokes was stunned that “someone had that much control over someone” and “had never seen anything like it.”
Stokes began visiting the Bagley residence where FV was being held. During his first visit, he was shown a photo of FV’s vaginal opening sewn shut and told this was done to demonstrate “what was expected of her.” FV was present for these statements and remained silent. FV never talked back or spoke up. FV never offered herself to Stokes and only acted on command.
Stokes visited the Bagley residence eight to 12 times. During these visits, he would receive sexual acts or be allowed to watch or participate in torturing FV. When he visited he brought steaks, hamburgers, jackets, personalized playing cards, lighters, cigarettes, and cash. Among other things, he witnessed FV being tortured with a crank phone, with electricity shot through devices clamped to her vaginal and anal openings.
Stokes helped promote FV at the strip clubs. Stokes took photos of FV around to the clubs to promote her there. Stokes gave $1,000 so that FV could be taken for a sexual bondage photo shoot in California for Taboo magazine. Stokes then took a copy of the magazine to promote her at the clubs. The photos in Taboo magazine were extremely mild and did not depict any of the cruel sessions Stokes had witnessed at the residence.
In 2009, Stokes was warned that there was an FBI investigation involving his conduct with FV. Stokes went on his computer and deleted hundreds of photos, his contacts with other females online, pictures of FV that he saved, and destroyed his copies of Taboo magazine and the sexual devices that he had acquired.Noel pleaded guilty on Feb. 24, 2011, to participating in the sex trafficking conspiracy. Noel admitted that he was one of the customers who sexually abused and tortured FV. Noel watched the victim being tortured and sometimes operated torture devices himself beginning in 2006, when she was approximately 20 years old. For example, Noel knew that FV hated being electrocuted with a crank phone (which was wired inside FV=s vaginal and anal openings and to her toes), which he described as Aextremely painful,@ but he used it on her anyway.
Three defendants in this case were sentenced on Wednesday, Sept. 11, 2013.
Edward Bagley and Bradley Cook, also known as APutHer2GoodUse,@ 34, of Kirkwood, Mo., were each sentenced to 20 years in federal prison without parole. Dennis Henry, 53, of Wheatland, Mo., was sentenced to 10 years in federal prison without parole. As part of the agreement obtained by the government, Cook was required to pay $123,041 in restitution at the time of his sentencing. Edward Bagley and Henry are individually liable for $123,041 in restitution. Their wages will be garnished while in custody, and after they are released, until they have paid their restitution in full.
Following their prison terms, Bagley, Cook and Henry will be on supervised release for the rest of their lives. Among the terms of supervision ordered by the court, they must adhere to a 10:30 p.m. curfew and are prohibited from any contact with the victim, the government’s attorneys and the agents involved in the case.
This case marked the first time nationwide that the customers, or “Johns,” have been convicted under the Trafficking Victims Protection Act in a sex trafficking case in which the victim was an adult. This is also the first human trafficking conviction in which the customers were prosecuted in a case that involved an actual victim rather than an undercover sting operation.
On Jan. 15, 2013, Bagley pleaded guilty to enticing a minor into illegal sexual conduct and prostitution. Bagley met FV in 2002, when she was 16 years old and dating his teenage son. FV visited his trailer residence in Lebanon on numerous occasions. During FV’s visits to Bagley’s residence, he showed her images and videos of pornography on the Internet and downloaded from the Internet, including images and videos of bondage and sadomasochistic conduct. Bagley admitted that he provided FV with controlled substances. He taught her about bondage and sadomasochistic activities. His wife, co-defendant Marilyn Bagley, 48, modeled stripper and bondage clothing for FV. The Bagleys told FV that she would love being a “slave” for him. Bagley began a sexual relationship with FV prior to her seventeenth birthday.
FV viewed Edward Bagley as her boyfriend and moved into the Bagleys’ residence in 2003. They provided FV her own room and clothes, and promised her a great life.
Over the course of the next six years, Edward Bagley executed sadistic acts of torture on FV, including sewing her vagina closed, whipping and flogging her body, penetrating her breasts with needles and skewers, suffocating her with plastic bags, strangling her with rope, locking her in a dog cage, and electrocuting FV’s sexual organs with devices which produced electrical voltage. Edward Bagley photographed and videotaped many of the acts he performed on her. FV would be punished if she did not do as instructed.
Cook pleaded guilty on Dec. 20, 2011, to participating in a conspiracy to commit sex trafficking by force, fraud or coercion. From 2006 to 2009, Cook watched the victim being sexually abused and tortured in live online sessions and as depicted in photos and videos that he downloaded from the Internet. Cook admitted that he traveled to Lebanon on multiple occasions during that time to engage in sessions of sexual acts and torture with the victim. In exchange, Cook paid the victim=s Amaster@ for these sessions with such items as computer hard drives that contained images and videos of bondage, domination, sadism and masochism, which he had downloaded from the Internet.
Cook also admitted he was aware of other men who engaged in sexual acts and torture with the victim. He witnessed the victim being whipped and locked in a dog cage, as well as being tied up and shocked with multiple electrical devices. Cook described the abuse suffered by the victim as the Amost extreme@ he had ever seen.
Henry, formerly the postmaster of Nevada, Mo., pleaded guilty on March 24, 2011, to participating in the conspiracy. Henry also pleaded guilty to transporting the victim across state lines for sexual activity.
Henry admitted that he engaged in sex with the victim, and participated in torture sessions with FV that would last for hours. Henry saw pictures of FV=s vagina sewn shut, which he was told was a form of punishment. Henry also admitted that he visited FV at a Lebanon strip club where she was forced to work.
This case was prosecuted by Assistant U.S. Attorneys Cynthia L. Cordes, Paul Becker and John Cowles with assistance from the Department of Justice Civil Rights Division's Human Trafficking Prosecution Unit. It was investigated by the FBI in conjunction with the Human Trafficking Rescue Project.
Three Men Indicted for Conspiracy to Mail 3,000 Pills of Oxycodone from California to OhioRead the Press Release
Three men were indicted for their roles in a conspiracy to distribute nearly 3,000 pills of Oxycodone, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are: Myron D. Black, age 44, of Mansfield, Ohio; Chauncey L. Ransom, age 49, of Inglewood, California, and Victor A. Hageman, age 45, of Euclid, Ohio.
“Prescription pill abuse is a major problem in Ohio,” Dettelbach said. “Whether it is a doctor selling prescriptions or people using the mail to ship pills across the country, we are committed to stopping the flow of illegal drugs.”
Ransom obtained a total of 2,989 pills (30 mg each) of Oxycodone, a Schedule II controlled substance, in California and mailed them to Black, Hageman and other in Ohio via the United States Postal Service Express Mail, according to the indictment.
Ransom often packaged the pills in video movie disc covers, plastic bubble mailing envelopes and other packaging to conceal the contents, according to the indictment.
Black and Hageman made arrangements with other individuals to receive the package from Ransom in return for money, usually $200, according to the indictment.
The conspiracy took place between at least August 2012 through April 2013, with Ransom mailing packages to addresses in Lakewood, Seven Hills, Akron and Mansfield containing shipments of between 200 and 600 pills, according to the indictment.
The indictment results from an investigation conducted by the United States Postal Inspection Service, in Cleveland, with the assistance of Metro-Richland County (Ohio) Enforcement Unit, and the Akron, Police Department, as well as the United States Postal Inspection Service, in Los Angeles, and the Los Angeles Police Department. The case is being prosecuted by Assistant United States Attorney Christian H. Stickan.
If convicted, the defendant's sentence will be determined by the court after review of factors unique to this case, including the defendant's prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Three Las Vegans Charged with Telemarketing Fraud in Association with Promising Grants to Small Business OwnersRead the Press Release
LAS VEGAS, Nev. – Three Las Vegas residents have been indicted by the federal grand jury for allegedly defrauding almost 400 persons of over $5 million in connection with a grant funding telemarketing scheme, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Gregory Villegas, aka Ray Matsui, aka Ray Mathis, 34; Christine M. Gagnon, aka Lisa Foster, aka Crystal Waters, 33; and Mickey Gines, 40, all of Las Vegas, are each charged with one count of conspiracy to commit wire fraud in connection with telemarketing, and 31 counts of wire fraud. They were arrested in Las Vegas this morning and are scheduled to make initial appearances in court today before United States Magistrate Judge George Foley, Jr. at 2:30 p.m.According to the court records, Villegas owned and controlled Executive Solutions, Inc. in addition to Business Funding Services Enterprises; BFS Enterprises; Global Business Funding, Inc.; The Grant People; USA Grant Team; USA Grants; National Financial Advisors; US Filing Services, Inc.; US Filings Service, Inc.; USFS, Inc.; Echoe, Inc.; Worldwide Asset Management; Corporate Capital Team; Business Acumen; and Kuff Ltd.
These companies were allegedly involved in the business of grant funding. Gagnon and Gines were officers in some of the companies and were also listed as employees in other grant funding companies that they or Villegas owned or controlled. Beginning in about March 2008 and continuing through May 2, 2012, Villegas, Gagnon, Gines and others engaged in a telemarketing scheme to defraud persons of their money, including at least 10 victims over the age of 55. The defendants employed sales staff to place telemarketing calls and operate websites for the purpose of soliciting fees from small business owners who wished to obtain private and government grants. The defendants and staff allegedly used high pressure sales and lulling tactics and made many types of false statements to customers concerning their ability to deliver grants, when the defendants knew that their true intent was to obtain as much money as possible from the customers, rather than assist them in obtaining grants, and knew that none of their customers had ever received a grant.
In order to avoid lawsuits and detection by law enforcement, the defendants operated their companies under multiple and evolving names and directed their staff to use aliases which they routinely changed in communications with the customers. When the grants failed to materialize, the defendants and staff falsely represented to customers that they were only collecting money for other companies or that delays in funding were caused by circumstances beyond the defendants’ control. In some instances, the defendants agreed to provide partial refunds to customers and fraudulently required the customers to sign release forms stating that the defendants had not engaged in any wrongdoing.
The indictment alleges that through this scheme, the defendants victimized approximately 390 persons throughout the United States, 10 of whom were over the age of 55, and obtained approximately $5.2 million in fraudulently obtained funds.
If convicted, they face up to 30 years in prison on the conspiracy count, plus up to 10 consecutive years for telemarketing to 10 or more persons over the age of 55, and up to 30 years in prison on each wire fraud count, as well as fines of up to $250,000 per count.The case was investigated by the United States Secret Service and FBI and is being prosecuted by Assistant U.S. Attorney Christina M. Brown.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
An indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to fair trials at which the government has the burden of proving guilt beyond a reasonable doubt.St. Joseph Women Sentenced for $5 Million Conspiracy to Provide Thousands of Identity Documents to Illegal AliensRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two St. Joseph, Mo., women along with four co-defendants, have been sentenced in federal court for their roles in a more than $5 million conspiracy that utilized the Missouri Department of Revenue license office in St. Joseph to provide more than 3,500 fraudulent identity documents to illegal aliens across the United States.
Sherri E. Gutierrez, 46, of St. Joseph, and Brenda De La Cruz, 33, of San Antonio, Texas, were sentenced on Wednesday, Sept. 11, 2013, in separate hearings before U.S. District Judge Gary A. Fenner. Gutierrez was sentenced to five years and five months in federal prison without parole. De La Cruz was sentenced to four years in federal prison without parole. Gutierrez’s daughter, Shayna R Vanvacter, 27, of St. Joseph, was sentenced on Tuesday, Sept. 10, 2013, to two years in federal prison without parole.
Three additional co-defendants were also sentenced on Tuesday, Sept 10, 2013. Elder Enrique Ordonez-Chanas, also known as “Flaco,” 32, a citizen of Guatemala who is unlawfully in the United States and resided in Carthage, was sentenced to five years and one month in federal prison without parole. Luis Adalberto Felipe-Lopez, 30, a citizen of Guatemala who was unlawfully in the United States and resided in Mt. Olive, N.C., was sentenced to four years in federal prison without parole. Rafael Hernandez-Ortiz, also known as “Hugo,” 32, a citizen of Mexico who was unlawfully present in the United States and resided in Owatonna, Minn., was sentenced to two years in federal prison without parole.
It is estimated that more than 3,500 licenses were issued to illegal aliens by the Department of Revenue license office in St. Joseph. Conspirators helped illegal aliens obtain birth certificates and Social Security cards in the names of others. These identity documents were used to obtain either a Missouri driver’s or non-driver’s license at the St. Joseph license office. The state licenses could then be used by the illegal aliens to remain unlawfully in the United States, to unlawfully obtain employment and for other unlawful purposes.
The illegal aliens were usually charged between $1,500 and $1,600 for the document sets and the Missouri driver’s and non-driver’s licenses. It is estimated that more than $5,250,000 in gross proceeds was paid by illegal aliens to members of this conspiracy.
Sixteen defendants have been sentenced and two defendants have pleaded guilty and await sentencing.
Gutierrez pleaded guilty on April 10, 2013 to being a leader or manager of the conspiracy to transport illegal aliens, to unlawfully produce identification documents, to unlawfully transfer another person’s identification and to commit Social Security fraud from November 2009 to January 2012. She also pleaded guilty to aggravated identity theft. De La Cruz also pleaded guilty to her role in the conspiracy and to aggravated identity theft.
Gutierrez’s sister, Deborah J. Flores, 47, was sentenced on June 26, 2013, to three years and four months in federal prison without parole. On Oct. 18, 2012 Flores pleaded guilty to her role in the conspiracy and to aggravated identity theft.
Flores’s children, Jessica M. Gonzalez, 22, Sara M. Gonzalez, 21, Christina Michelle Gonzalez, 24, and Stephen E. Vanvacter, 25, along with co-defendant Christopher B. Escobar, 23, all of St. Joseph, have also pleaded guilty to their roles in the conspiracy.
Gutierrez, Shayna Vanvacter, Flores, her children and Escobar all admitted that they accompanied illegal aliens to the St. Joseph license office, under the guise of being translators, in order to assist them with obtaining a Missouri driver’s or non-driver’s license. They also admitted that they instructed and assisted the illegal aliens to practice memorizing the information on the birth certificates and Social Security cards and to practice signing the name on those documents so that the signatures would be similar. They also assisted the illegal aliens to prepare for potential questions from the license office employees. They also assisted the illegal aliens who did not live in Missouri by providing them with a Missouri residential address to use in order to obtain the Missouri driver’s or non-driver’s license.
Christina Gonzalez was sentenced to 32 months in federal prison without parole and ordered to pay $150,000 in restitution. Sara Gonzalez was sentenced to 15 months in federal prison without parole. Jessica Gonzalez was sentenced to three years of probation. Stephen Vanvacter was sentenced to five years of probation.
Ordonez-Chanas pleaded guilty on April 8, 2013 to his role in the conspiracy and to aggravated identity theft. Ordonez-Chanas was an organizer and leader of the conspiracy. Ordonez-Chanas admitted that he assisted illegal aliens in obtaining birth certificates and Social Security cards in the names of others. Ordonez-Chanas requested document sets (of a specific age range for either a male or a female that corresponded with the illegal alien who was the customer) from co-defendants De la Cruz and Julio Cesar Llanas-Rodriguez, 38, and Martin Alejandro Llanas-Rodriguez, both of San Antonio, Texas. Ordonez-Chanas then mailed the documents sets to Gutierrez and others.
Felipe-Lopez pleaded guilty to his role in the conspiracy and to aggravated identity theft. Felipe-Lopez admitted that he transported illegal aliens between St. Joseph and North Carolina. Felipe-Lopez admitted that he assisted illegal aliens in obtaining birth certificates and Social Security cards in the names of others. These identity documents were used to obtain either a Missouri driver’s or non-driver’s license at the St. Joseph license office.
Hernandez-Ortiz pleaded guilty to his role in the conspiracy on April 29, 2013. Hernandez-Ortiz admitted that he transported illegal aliens from Minnesota to the St. Joseph license office.
Julio and Martin Llanas-Rodriguez were each sentenced to five years and one month in federal prison without parole. They both pleaded guilty to participating in the conspiracy and to aggravated identity theft. Along with De La Cruz, their roles in the conspiracy were to obtain state-issued birth certificates, usually from the state of Texas, which they purchased from willing individuals. They also obtained Social Security cards in the names of the individuals on the birth certificates, so they would have a matching document set. They mailed the documents to Gutierrez and others.
Nelson Dariseo Bautista-Orozco, 27, a citizen of Guatemala who is unlawfully in the United States and resided in Carthage, was sentenced to three years and six months in federal prison without parole.
Ranfe Adaias Hernandez-Flores, also known as “Miguel,” 24, also a citizen of Guatemala who is unlawfully in the United States and resided in Carthage, was sentenced to two years in federal prison without parole.
Jon L. Grippando, 25, of Atkins, Ark., was sentenced to eight months in federal prison without parole.
Melissa L. Scallions, 27, of Hazelwood, Mo., has pleaded guilty to her role in the conspiracy. She admitted that she also accompanied illegal aliens into the St. Joseph license office, under the guise of being a translator, in order to assist them with obtaining a Missouri driver’s or non-driver’s license. Scallions and Escobar await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, the Buchanan County, Mo., Sheriff’s Department, the St. Joseph, Mo., Police Department, the Platte County, Mo., Sheriff’s Department, the Missouri State Highway Patrol, the Missouri Department of Revenue Investigation Bureau, the Social Security Administration Office of Inspector General, the U.S. Postal Inspection Service and the Department of State’s Diplomatic Security Service.St. George Man Charged with Wire Fraud, Money Laundering in Real Estate Investment Fraud SchemeRead the Press Release
Indictment Alleges He Solicited About $10 million From More Than 50 IndividualsSALT LAKE CITY – A federal grand jury returned a 32-count indictment Wednesday afternoon charging Edmund Edward Wilson, age 69, of St. George, Utah, with wire fraud, conspiracy to commit wire fraud, and money laundering in connection with what the indictment alleges was a real estate investment scheme he ran through his company, Fountain Group of Companies of Utah, Inc.
According to the indictment, Wilson was president, owner, and director of Fountain Group, with its principal place of business in St. George. Through Fountain Group, Wilson purported to provide financing for real estate development projects throughout the United States. He conducted business by, among other things, entering into contracts with individuals he called “investors” who had real estate development projects and having those investors wire money into his Fountain Group account.
The indictment alleges that beginning in 2005 and continuing to around 2012, Wilson falsely represented to investors that his company could provide financing for real estate development projects for an advance fee of either $80,000 or $150,000 through an investment program he called “Substitution of Collateral Program.” The indictment alleges Wilson made misrepresentations to investors about the program., including that Wilson could obtain financing for their project within 15 to 180 days and that the program was so profitable that Fountain Group could provide development project financing that would be entirely “forgiven” within 18 months, although the borrower would then owe income taxes on the forgiven debt. In return, these investors would give Wilson a stake in the development project.
According to the indictment, when investors called Wilson to ask why they had not received funding for their projects within the time promised, Wilson falsely represented to investors that he needed additional money to cover various unforeseen fees and expenses, and that once these costs were paid, funds would be released for the development projects.
The indictment alleges Wilson failed to disclose to investors that he never provided any funding for any development project through his Substitution of Collateral Program and that he used a significant portion of the advanced fees for his personal benefit.
Later in the scheme, Wilson falsely represented to investors who had already invested in his program and to new potential investors that he could arrange financing of their development projects through his wealthy partner in Asia known as “the General.” In exchange for an investment of $80,000 to $150,000, investors would receive a forgivable loan for their real estate development project. The loan would come from “the General” who had access to millions of dollars in U.S. currency set aside for investment projects in the United States.
According to the indictment, Wilson represented that he and “the General” had partnered with the Department of Justice and the FBI to bring the U.S. currency from China back into the United States as a type of “unofficial stimulus package.” To release the funds back into the United States, certain taxes and fees had to be paid in China where the funds were being held.
Again, Wilson failed to disclose to investors that he had never provided any funding for any development project through his foreign investment program and that he used a significant portion of the advanced fees for his personal benefit.
The indictment alleges 19 counts of wire fraud and attempt and conspiracy to commit wire fraud and 13 counts of money laundering. The potential maximum penalty for each wire fraud count is 20 years in prison. Each count of money laundering carries a potential penalty of 10 years in prison.
A summons will be issued to Wilson to appear in federal court in Salt Lake City on Oct. 16, 2013, at 10 a.m. before U.S. Magistrate Judge Evelyn J. Furse.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The case is being investigated by special agents of the FBI and IRS Criminal Investigations. It is being prosecuted by the U.S. Attorney’s Office in Utah.
(Follow the U.S. Attorney’s Office on Twitter @DUTnews)Spokane Man Sentenced to Fifteen Years in Federal Prison for Uploading A Child Pornography Video to PhotobucketRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Eric Kyle Nevue, age 27, of Spokane, Washington, was sentenced today after having previously pleaded guilty on June 10, 2013 to Distribution of Child Pornography. Chief United States District Court Judge Rosanna Malouf Peterson sentenced Nevue to a fifteen year term of imprisonment, to be followed by a life term of court supervision after he is released from Federal prison. Nevue has a prior 2008 Washington State conviction for Dealing in Depictions of Minors Engaged in Sexually Explicit Conduct.
According to information disclosed during the court proceedings, in September of 2012, Photobucket.com reported to the National Center for Missing and Exploited Children (NCMEC) that someone had uploaded a video of child pornography to their Photobucket.com account. NEMEC referred the information to the Internet Crimes Against Task Force in Washington State. As a result, the Spokane Police Department and the United States Secret Service conducted an investigation and executed a search warrant on November 8, 2012 at Nevue's residence in Spokane, Washington and located images of child pornography on Nevue's cellular telephone .
Michael C. Ormsby stated: "Prosecuting offenders with prior child pornography convictions is a priority of the United Sates Attorney's Office for the Eastern District of Washington. Such cases will be investigated and prosecuted aggressively. This Office will seek appropriate punishment for child pornography crimes."
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative ("PSC") has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue child victims;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted the United States Secret Service and the Spokane Police Department. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
CR-13-0027-RMP
Shrewsbury Woman Indicted for Filing False Tax ReturnsRead the Press Release
BOSTON – In an indictment unsealed today, a Shrewsbury woman has been charged with underreporting income from her federal tax returns.
Roberta I. Crudale Blute, 55, was indicted on two counts of filing false tax returns for tax years 2007 and 2008.
The indictment alleges that Blute omitted from tax returns hundreds of thousands of dollars in income that she earned from numerous employers for tax years 2007 and 2008. Specifically, it is alleged Blute knowingly failed to report income she earned from four companies in 2007 and five companies in 2008.
The statutory maximum penalty is three years in prison, one year of supervised release and a $250,000 fine. Blute is scheduled to have her initial appearance today at 2 pm in Worcester.United States Attorney Carmen M. Ortiz; John G. Collins, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Vincent Lisi, Special Agent in Charge of the FBI’s Boston Field Division; and Susan J. Waddell, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General, Office of Investigations, made the announcement.
This case is being prosecuted by Assistant U.S. Attorneys Amanda P.M. Strachan and Miranda Hooker of Ortiz’s Health Care Fraud Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sentences for September 06 – 12, 2013Read the Press Release
Luis Solis-Zarza, 26, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 12, 2013, for illegal re-entry of a previously deported alien into the United States. Solis-Zarza was arrested in Cheyenne, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Edgar Ismael Martinez-Suarez, 25, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 12, 2013, for illegal re-entry of a previously deported alien into the United States. Martinez-Suarez was arrested in Lander, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Adam David Simkins, 26, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 10, 2013, for conspiracy to possess with intent to distribute and distribution of 1,041 grams of methamphetamine. Simkins was arrested in Cheyenne, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $250.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Ajay Jariwala, 51, of Albuquerque, New Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 9, 2013, for conspiracy to commit arson. Jariwala was arrested in Albuquerque, New Mexico. He received 72 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment, a $10,000.00 fine and restitution in the amount of $50,000.00 to the Fireman’s Fund Insurance. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
David Mickael Gehl, 26, of Fort Washakie, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 9, 2013, for unlawful user of controlled substance in possession of a firearm. Gehl was arrested in Lander, Wyoming. He received 37 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Indian Affairs and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Gretchen Ann Elliot, 54, of Big Bear City, California, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 9, 2013, on one count of conspiracy to possess with intent to distribute and two counts of distribution of at least 500 grams but not more than 1.5 kilograms of a mixture or substance containing a detectable amount of methamphetamine. Elliot was arrested in Big Bear City, California. She received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $300.00 special assessment and a $200.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
John Marcus Barnes, 45, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 6, 2013, for conspiracy to possess with intent to distribute, and to distributing at least 500 grams but not more than 1.5 kilograms of a mixture or substance containing a detectable amount of methamphetamine. Barnes was arrested in Cheyenne, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Ernesto Joseph Guerrero, 43, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 6, 2013, for conspiracy to possess with intent to distribute, and to distributing 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Guerrero was arrested in Casper, Wyoming. He received 84 months of imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Schuylkill County Man Sentenced for Production of Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert Lee Raeder, age 45, of Tamaqua, Schuylkill County, was sentenced today in federal court on a charge of production of child pornography. United States District Court Senior Judge Richard P. Conaboy sentenced Raeder to 121 months of imprisonment and three years supervised release. Raeder was also ordered to comply with the registration requirements of the Sexual Offender Registration Act (the Adam Walsh Act).
Raeder was arrested on April 2, 2013 and charged with the production of child pornography. He entered a guilty plea to the charge on May 7, 2013. The criminal information sets the time period for the offenses as various times between January 2001 through December 2012.
The case against Raeder stems from an investigation by the Pennsylvania State Police Computer Crimes Unit and United States Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Raeder produced videos and other images and then maintained them on his computer. A forensic examination of Raeder’s computer revealed the images and videos. The victims were identified. Raeder is in custody and still faces pending state charges.
United States Attorney Peter J. Smith noted that this case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was prosecuted by Assistant United States Attorney Michelle Olshefski.
San Diego Man Who Wore "I Make Pimpin’ Look Easy" Shirt Pleads Guilty to Transporting A Minor for ProstitutionRead the Press Release
Martell Davis, who was wearing a T-shirt that read "I MAKE PIMPIN' LOOK EASY…" when he arrived to pick up his 17-year-old prostitute from a hotel and was arrested, admitted in federal court today that he was, indeed, a pimp.
Davis pleaded guilty before U.S. Magistrate Judge Ruben B. Brooks to transportation of a minor to engage in prostitution. In his plea agreement, Davis admitted that he acted as pimp for a 17-year-old girl when he drove her from San Diego to Yuma, Arizona, so she could engage in commercial sex acts.
According to court records, Davis' arrest was the result of an undercover operation by San Diego vice cops. A detective, responding to an online prostitution ad, set up an $80 "date" for July 26 at a Best Western hotel in Mission Valley. The girl was arrested.
While in the hotel room, the detective used the girl's phone to text a person they believed was her pimp. Posing as the girl, the detective texted the pimp, asking how much she should charge for a particular sex act. The person on the other end responded, "Break the bank." And later, the person using the phone of the suspected pimp inquired how much she’d made from the sex act. The detective texted back "5," meaning $500. The person responded via text, "damn cool."
Using the girl’s phone, the detective asked when the suspected pimp would pick her up. The person responded that he would come to get her. Moments later, defendant Martell Davis arrived at the room where the date was set up with the undercover detective. Davis was arrested at approximately 12:30 am on July 27, 2013, while wearing the T-shirt that read “I MAKE PIMPIN’ LOOK EASY….”
Davis was scheduled to be sentenced December 13, 2013, at 9am before U.S. District Judge Janis L. Sammartino.
DEFENDANT Case Number: 13cr3149 Martell Davis SUMMARY OF CHARGESTransportation of a Minor to Engage in Prostitution, in violation of Title 18, United States Code, Section
INVESTIGATING AGENCY
2423(a) – Maximum Penalties: Life in prison, with mandatory minimum 10 years.San Diego Police Department
Salem Pharmacist Charged with Health Care FraudRead the Press Release
A one-count criminal information was filed charging a Salem, Ohio, pharmacist with health care fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Bruce E. Franken, 52, was excluded in 2003 from participating in all federal health care programs, including Medicare and Medicaid, for a minimum of 10 years as a result of his felony conviction, according to the information.
“This defendant was specifically barred from billing programs such as Medicaid because of his criminal past,” Dettelbach said. “Our office will continue to stamp out waste, fraud and abuse of all federal programs, particularly those that affect our health care system.”
From May 14, 2009, through July 14, 2011, Franken worked as a pharmacist at J.H. Lease Pharmacy, 229 North Ellsworth Avenue, Salem, Ohio. He filled prescriptions for Medicaid recipients even though he knew he was excluded from participation in all federal health care programs.
As a result of Franken’s unauthorized and fraudulent claims, Medicaid was billed and subsequently paid these prescriptions that Franken was prohibited from providing in the amount of $301,550, according to the information.
If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, the defendants’ roles in the offense and the characteristics of the violation. The sentence will not exceed the statutory maximum and in most cases will be less than the maximum.
This case is being handled by Assistant U.S. Attorney Chelsea Rice and Special Assistant U.S. Attorney Constance Nearhood following an investigation by the U.S. Department of Health and Human Services, Office of Inspector General.
An information is only a charge and is not evidence of guilty. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Rockford Man Sentenced to 77 Months in Federal Prison on Gun ChargeRead the Press Release
ROCKFORD — A Rockford, Ill. man was sentenced today in federal court before U.S. District Judge Frederick J. Kapala to 77 months in prison without parole, to be followed by 3 years of supervised release, for illegally possessing a firearm as a convicted felon. Jeffrey L. Lottie, 27, pled guilty to the charge on June 3, 2013.
According to the written plea agreement, at approximately 1:31 a.m., on February 23, 2013, Lottie was a front seat passenger in a red Chevy Monte Carlo being driven by his girlfriend on West State Street in Rockford. A Winnebago County Sheriff's Deputy on patrol on West State Street in Rockford stopped the vehicle for a traffic violation. Lottie admitted that after the car was stopped, he placed a Highpoint .45 caliber semi-automatic handgun into his girlfriend's purse on the rear seat of the Monte Carlo. During the traffic stop, the deputy observed the open purse on the backseat and saw the Highpoint handgun. The magazine of the gun, which was seized by the police, was loaded with 5 rounds, although there was not a round in the chamber. Lottie admitted that he illegally possessed the firearm as a convicted felon and that he possessed the gun when he entered the vehicle.
The defendant was originally charged in state court, and is now charged in federal court under tough federal firearms laws as part of the Project Safe Neighborhoods program. Project Safe Neighborhoods is an intensive, cooperative effort between local, state, and federal law enforcement to attack gun crimes. The cornerstone of the program is that every defendant committing an offense involving a gun will be reviewed for possible federal prosecution in order to obtain the harshest penalties for the worst offenders. Additional information about Project Safe Neighborhoods may be found at: psn.gov.
The sentencing was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; W. Larry Ford, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; Chet Epperson, Chief of the Rockford Police Department; and Richard Meyers, Winnebago County Sheriff.
The government was represented by Assistant U.S. Attorney Joseph C. Pedersen.
Property Manager and Straw Purchaser Admit Roles in Multimillion-Dollar Mortgage FraudRead the Press Release
CAMDEN, N.J. – A property manager and a straw purchaser have admitted their roles in a scheme to defraud financial institutions as part of a multimillion-dollar mortgage fraud that used phony documents and “straw buyers” to make illegal profits on over-developed condominiums in the Wildwood, N.J., area, U.S. Attorney Paul J. Fishman announced today.
Paul Watterson, 53, of Mountainside, N.J., and John Bingaman, 44, of Benton, Ark., pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to separate informations charging each with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. Bingaman entered his plea today and Watterson entered his plea on Sept. 11, 2013.
According to documents filed in this case and statements made in court: Watterson and his conspirators identified homes in Wildwood and Wildwood Crest and recruited straw buyers to purchase those properties at the inflated rates. The straw buyers had good credit scores, but lacked the financial resources to qualify for mortgage loans. Watterson created fraudulent loan applications that contained false information about the straw buyers’ employment, income, assets and intended use of the properties. Watterson also obtained on behalf of his conspirators false documents to support the phony loan applications for certain straw purchasers. Watterson’s actions were designed to make the straw buyers appear more creditworthy than they actually were in order to induce the lenders to make the loans.
Watterson and his conspirators caused fraudulent mortgage loan applications in the name of the straw buyers, including the supporting documents, to be submitted to mortgage brokers that the brokers knew were false. Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings, Watterson’s conspirators took a portion of the proceeds, having funds wired or checks deposited into various accounts they controlled. They also distributed a portion of the proceeds to other members of the conspiracy for their respective roles. Watterson received $273,600 from five separate real estate transactions.
Bingaman purchased three separate properties in Wildwood and Wildwood Crest. Bingaman and others falsified his loan applications with respect to his employment, income, and assets in order to cause the lenders to make loans to Bingaman for the three properties. Bingaman took a portion of the fraudulent mortgage proceeds by having three separate checks totaling $241,789.98 deposited into an account for Five Stone Development – a company he controlled.
The wire fraud conspiracy charge is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine. The money laundering conspiracy is punishable by a maximum potential penalty of 10 years in prison and a $250,000 fine. Watterson’s sentencing is scheduled for March 13, 2014. Bingaman’s sentencing is scheduled for March 14, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
13-368
Defense counsel: Watterson: Thomas R. Ashley Esq., Newark
Bingaman: William H. Buckman Esq., Moorestown, N.J.Bingaman Information
WattersonInformationPrior Sex Offender Sentenced to Fifteen Months in Prison for Failing to Update Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Henderson Burke, Jr., 44, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this morning to 15 months in federal prison followed by five years of supervised release for failure to comply with the Sex Offender Registration and Notification Act (SORNA).
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, and/or where the offender is a student, and that the sex offender maintain current registrations.
In Sept. 1997, Burke was sentenced to 63 months in prison for his federal conviction for child sex abuse on an Indian reservation. Based on that conviction, Burke was required to renew his registration as a sex offender for twenty years on an annual basis.
Burke, who most recently was located in Bernalillo County, N.M., was arrested by the U.S. Marshals Service on Dec. 5, 2012, based on a criminal complaint alleging that he violated SORNA by failing to update his sex offender registration as required. Burke has been in federal custody since that time. He was indicted and charged with failure to update his sex offender registration on Dec. 19, 2012.
According to court filings, Burke first registered as a sex offender with the Bernalillo County Sheriff’s Office in Jan. 2004 and last registered in May 2010. Subsequently, a review of annual audits of sex offender registrations revealed that Burke did not renew his sex offender registration in 2011 or anytime thereafter. Burke pleaded guilty to the indictment on April 3, 2013.
This case was investigated by the U.S. Marshal Service with assistance from the Bernalillo County Sheriff’s Office and was prosecuted by Supervisory Assistant U.S. Attorney Glynette R. Carson McNabb.Postal Employee, Will R. Bulloch, Sentenced for Theft of MailRead the Press Release
WILL R. BULLOCH, age 27, a resident of Franklinton, Louisiana, was sentenced today to two years of probation by U.S. District Judge Lance M. Africk for the theft of United States mail by a postal employee, announced U.S. Attorney Dana J. Boente. In addition to the term of probation, Judge Africk ordered BULLOCH to pay $11,227.40 in restitution to the United States Postal Service.
According to court documents, BULLOCH admitted that he was employed on March 3, 2007, as a Sales and Service Associate, at the Main Post Office, in Angie, Louisiana. One of the defendant’s jobs was to sell U.S. Postal money orders. Customers would purchase money orders and then place them in an envelope and deposit them to be mailed. BULLOCH confessed that after he sold a money order, he opened the customer’s envelope in the outgoing mail and forged the name on the money order. He admitted that he endorsed them for cash or deposit. He covered up the crime by voiding the money order in the computer system. BULLOCH further admitted that from September 16, 2011, through February 24, 2012, he removed articles from first-class mail presented for delivery. Records reflect that fifty-one money orders sold by BULLOCH had been voided and converted to cash.
This case was investigated by the United States Postal Service, Office of Inspector General and was prosecuted by Assistant United States Attorney Dorothy Manning Taylor.
Pierre Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pierre, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on September 11, 2013, by U.S. District Judge Roberto A. Lange.
Adrian Wells, age 37, was sentenced to 18 months of custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Wells was indicted by a federal grand jury on December 11, 2012, and pled guilty to a charge of Failure to Register as a Sex Offender on June 25, 2013.
On December 6, 1995, Wells was convicted of Aggravated Sexual Abuse. The Court sentenced Wells to 63 months in custody and 5 years of supervised release. Wells was also ordered to register as a sex offender under the Sex Offender Registration and Notification Act.
On May 19, 2009, Wells signed a lease for an apartment, but failed to register the apartment as his residence. Instead, Wells continued to use his previous address, even though he did not reside there. Wells registered the previous address with law enforcement on five occasions, knowing he was not residing at that address.
The investigation was conducted by the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney Marie Ruettgers.
Wells was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.Pierce County Man Pleads Guilty to Hiring ‘Hit Man’ to Assassinate People in VietnamRead the Press Release
A 45-year-old University Place, Washington man pleaded guilty today in U.S. District Court in Seattle to Conspiracy to Kill Persons in a Foreign Country and Solicitation to Commit a Crime of Violence, announced U.S. Attorney Jenny A. Durkan. LONG VAN NGUYEN, admits that in 2012 he tried to pay to have various people in Vietnam killed. NGUYEN thought that he was hiring an assassin to carry out the murders when in fact he was dealing with undercover federal law enforcement agents. Prosecutors have agreed to recommend no more than 14 years in prison when NGUYEN is sentenced by U.S. District Judge Robert S. Lasnik on January 10, 2014. However, Judge Lasnik is not bound by the recommendation and can impose any sentence allowed by law.
According to the plea agreement signed today, in March 2012 NGUYEN solicited an undercover Homeland Security Investigations Special Agent to assassinate people in Vietnam. NGUYEN had told others that he had sent $100,000 to a nephew in Vietnam, instructing him to spend only the interest earned by the money. Instead, the nephew spent all the money so NGUYEN wanted him killed. The undercover agent told NGUYEN he had associates in Vietnam who could do the killings. NGUYEN agreed to a plan whereby his nephew ‘Bon’ would show the ‘assassins’ who NGUYEN wanted killed. After identifying two proposed victims, NGUYEN then instructed the undercover agent that he wanted the nephew ‘Bon’ killed as well. A police officer in Vietnam, as well as an undercover FBI agent posed as possible assassins in the scheme. NGUYEN paid the undercover FBI agent additional money for the hit, and added four more people to the list of those he wanted killed. He provided pictures to the undercover Homeland Security special agent of the four he wanted killed. NGUYEN was arrested at his home on July 7, 2012 and has been in custody ever since.
Conspiracy to Kill Persons in a Foreign Country is punishable by up to life in prison and Solicitation to Commit a Crime of Violence is punishable by up to 20 years in prison.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), with assistance from the FBI and law enforcement in Vietnam. The case is being prosecuted by Assistant United States Attorneys Jill Otake and Ye-Ting Woo.Physician-Owned Hospital Agrees to Resolve Its Civil and Criminal Liability for Benefiting from Illegal Kickbacks to PhysiciansRead the Press Release
DALLAS - Forest Park Medical Center, LLC (FPMC), a North Texas physician-owned hospital, paid over $258,000 to settle allegations that it violated the civil False Claims Act, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. The United States contends that a FPMC representative paid illegal kickbacks to area physicians to obtain referrals for Tricare patients, a federally funded health care program, in violation of the federal law, between 2008 and 2012. Based on the same allegations, FPMC entered into a Non-Prosecution Agreement with the United States and agreed to certain conditions, as well as a federally imposed monitor for not more than 24 months. FPMC fully cooperated with the investigation, and by settling civilly and criminally, did not admit any wrong-doing or liability.
FPMC, located in Dallas, did not seek reimbursement from any federal sources such as Medicare and Medicaid, but only commercial payors and self-pay. Federal and State law usually limits the amount of compensation paid to physicians and their ability to refer certain patients under federally-insured programs. Because FPMC believed it did not accept federal funds, its representatives, to the benefit of FPMC’s behalf, offered and paid excessive remuneration and other things of value to actual and potential referring physicians or others, including amounts for “marketing” or “advertising.” Payments also were made in the form of cash and giftcards/coupons for luxury items. The United States alleges such payments were made to obtain federal health care program patients, such as TRICARE, a program for military retirees and their dependents. The United States contends such payments were unlawful kickbacks for the referral of federal health care program patients in violation of the federal Anti-Kickback Statute between January 1, 2008, and October 31, 2012. The United States initiated the investigation in response to numerous complaints.
In the Non-Prosecution Agreement, FPMC acknowledged the United States has sufficient evidence to seek an indictment for the offering and payment of illegal kickbacks in violation of federal law. In return for the non-prosecution of the hospital, FPMC selected and retained an independent monitor to address any compliance issues and the United States’ concerns regarding the allegations of illegal conduct. The monitor will be in place for not more than 24 months and will review and evaluate inpatient and outpatient claims submitted to all payors, not just federal programs. FPMC also agreed to cooperate with the United States’ ongoing investigation into certain individuals. No persons were released under the civil and criminal agreements. The United States’ investigation remains ongoing.
U.S. Attorney Saldaña praised the efforts of the investigating agencies, including the Defense Criminal Investigative Services; FBI; Department of Labor, EBSA; Office of Inspector General of the Office of Personnel Management; and FDA-CI.
“This civil and criminal resolution spares the honest employees and investors of FPMC, while holding the hospital accountable for allowing an environment where its representatives paid illegal kickbacks for referrals,” said U.S. Attorney Saldaña. “This outcome imposes well-deserved measures that we expect will ensure FPMC becomes fully compliant with federal and private health care program requirements. Whether physician-owned, not-for-profit or for-profit, the Department of Justice expects, and requires, all providers to be trustworthy and abide by the law,” Saldaña continued.
The case was handled by Assistant U.S. Attorneys Sean McKenna, Errin Martin and Lynette Wilson, and Special Assistant U.S. Attorney Glenn Harrison.
Philadelphia Man Charged in Identity Theft SchemeRead the Press Release
Angel Nathan Melendez, 24, of Philadelphia, PA, was charged today by Indictment with aggravated identity theft and passport fraud, announced United States Attorney Zane David Memeger. According to the indictment, Melendez secured a United States passport using his own photograph but another person’s name, date of birth, and social security number.
If convicted, Melendez faces a mandatory minimum sentence of two years with a maximum possible sentence of 12 years in prison, a three year period of supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by the State Department’s Diplomatic Security Service and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Palmetto Man Convicted of Tax CrimesRead the Press Release
TAMPA, FL - Acting U.S. Attorney A. Lee Bentley, III announces that a federal jury today found Gregory Albert Darst (71, Palmetto) guilty of one count of attempted interference with the Internal Revenue laws and four counts of willfully failing to file income tax returns. Darst, who was indicted on April 11, 2013, faces a maximum penalty of seven years in federal prison.
According to evidence presented at trial, Darst has not filed a federal income tax return since 1989. During the years charged in the indictment, Darst earned income from his operation of a mobile home park located in Largo, Florida. The income received exceeded the minimum amount requiring him to file annual tax returns. Evidence also showed that Darst engaged in a lengthy and coordinated effort to obstruct and impede the administration of the tax laws. He sent fraudulent documents to the IRS purporting to pay off his tax debt; attempted to retaliate against several IRS employees by making false accusations of misconduct; and he sent threatening correspondence to a private citizen who purchased property from Darst, which was encumbered by valid IRS levies and liens.
"Convictions, like the one returned against Mr. Darst today, send a loud and clear message that regardless of their opinions, people who willfully defy the tax laws will be fully investigated, prosecuted and subjected to the full punishment of the law," said Special Agent-in Charge James D. Robnett of the IRS-Criminal Investigation (Tampa Field Office). "Those Americans who file accurate, honest and timely returns can be assured that the government will hold accountable those who don't."
This case was investigated by the Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney Matthew Mueller.
Owners of Tennessee Trucking Companies Charged in 13-Count Federal IndictmentRead the Press Release
Dorian Ayache, 65, of Lebanon, Tenn. and Theresa Vincent, 53, of Murfreesboro, Tenn. were indicted yesterday by a federal grand jury on charges related to the violation of U.S. Department of Transportation (DOT) regulations, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee. The indictment charges Ayache with nine counts of violating DOT regulations, one count of conspiring to defraud the United States, and two counts of obstructing a grand jury investigation. Vincent was charged with conspiring to defraud the United States and with one count of perjury.According to the indictment, Ayache was the owner and operator of Three Angels Farms, an interstate commercial motor carrier based in Lebanon, Tenn., and Vincent was the owner and supposed operator of Terri’s Farm, an interstate commercial motor carrier based in Murfreesboro, Tenn.
In June 2012 DOT deemed that the operations of Three Angels Farms posed an imminent hazard to public safety and issued an order requiring Ayache to cease commercial motor vehicle operations. DOT’s Order was based on Ayache’s unacceptable safety practices, including his failure to adequately maintain his commercial motor vehicles and his failure to ensure that drivers were qualified, and cited 2012 accidents on I-40 and I-24 in Tennessee that resulted in fatal injuries to horses being transported.
The indictment alleges that, in violation of this order, Ayache continued his commercial motor carrier operations under the name and authority of Terri’s Farm, as well as under other names. DOT later categorized Terri’s Farm as a mere continuation of Three Angels Farm.
The indictment also alleges that Ayache concealed and attempted to destroy emails with the intent to impair their availability for use in the grand jury investigation and that Vincent made false statements under oath to a grand jury regarding her communications with Dorian Ayache during the investigation.
If convicted, Ayache faces up to 20 years in prison on each obstruction charge, up to 5 years in prison on the conspiracy charge, and up to 1 year in prison for each charge of violating DOT regulations. Vincent faces up to 5 years in prison on both the conspiracy count and the perjury charges, if convicted.
The case was investigated by the United States Department of Transportation, Office of Inspector General. The United States is represented by Assistant U.S. Attorney William F. Abely.
An indictment is merely an accusation and is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty in a court of law.
Okeechobee Woman Pleads Guilty to Preparation and Presentation of False Tax ReturnsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that defendant Maria Garcia, 33, of Okeechobee County, pled guilty today to charges of aiding and assisting the preparation and presentation of false tax returns, in violation of Title 26, United States Code, Section 7206(2).
Sentencing is scheduled for December 16, 2013, before U.S. District Judge Donald Graham in Fort Pierce, Florida. At sentencing, Garcia faces a possible maximum statutory sentence of up to three (3) years in prison.
According to statements made in open court and documents filed in the case, Garcia prepared multiple fraudulent tax returns for customers from January 2008 through May 2013, first while working for other tax preparers and then in her own tax preparation business. She prepared the returns, supplied false income and deduction figures, failed to review them in detail with the taxpayers, and then electronically filed them for those taxpayers.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Oakland Gang Member Sentenced to 12 Years for Firearm Possession Related to A Shoot-OutRead the Press Release
SAN FRANCISCO – Diandre Cummings, a member of the Oakland “Money Team” gang, was sentenced yesterday to serve a sentence of 144 months of imprisonment, United States Attorney Melinda Haag announced.
Cummings was indicted by federal grand jury on January 10, 2013, and charged with two counts being a Felon in Possession of a Firearm and Ammunition, in violation of 18 U.S.C. § 922(g). Cummings pleaded guilty to both counts in the Indictment on June 5, 2013.
Evidence showed that on October 21, 2012, Cummings engaged in a shoot-out on the street in Oakland with a rival gang member. The rival gang member was in a car with his family while the two men shot at each other. Cummings was not apprehended on the scene. Rather, on November 8, 2012, officers of the Oakland Police Department conducted surveillance on Cummings and caught him with a pistol in his vehicle. Cummings had previously been convicted of at least one felony offense and the ammunition and firearm had previously moved in interstate or foreign commerce. The sentence was imposed for the defendant’s possession of a firearm and ammunition during a shoot-out with a rival gang member and subsequent possession of a different firearm.
The sentence was handed down by The Honorable Phyllis J. Hamilton, U.S. District Judge. In addition to his prison term, Cummings was also sentenced to a 3-year period of supervised release and was also banned from any contact with members of Oakland’s Money Team gang during his period of supervision.
“This substantial sentence should send a strong message that we are dedicated to curbing gang violence, shootings, and the illegal use and possession of firearms in the City of Oakland. This case is a perfect example of the effectiveness of cooperative work between federal and local law enforcement– in this case the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Oakland Police Department. My office, and the numerous federal agencies working alongside the Oakland Police Department, will continue these ongoing efforts for maximum impact on violence reduction and making Oakland a safer city for all of its residents,” said United States Attorney Melinda Haag.
The case was prosecuted by Assistant United States Attorney James Mann with the assistance of Vanessa Vargas. The prosecution is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Oakland Police Department.
(Cummings indictment )
North Dakota Woman Sentenced for Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Yates, North Dakota, woman convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on September 11, 2013, by U.S. District Judge Roberto A. Lange.
April Pretends Eagle, age 32, was sentenced to 86 days in custody, a $1,000 fine, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Pretends Eagle was indicted for Distribution of a Controlled Substance to a Person Under the Age of 21 and Possession with Intent to Distribute a Controlled Substance by a federal grand jury on October 16, 2012. She pled guilty to Possession with Intent to Distribute a Controlled Substance on June 25, 2013.
The conviction stems from an investigation of burglaries in Eagle Butte, South Dakota. While investigating the burglaries, a criminal investigator for the Cheyenne River Sioux Tribe learned that several juveniles committed a series of the burglaries and that some of the stolen items could be located at co-defendant Philip LaBatte’s residence. The investigator obtained a tribal search warrant for LaBatte’s residence, where Pretends Eagle was staying. When law enforcement executed the search warrant, they found, among other things, at least 250 grams, but less than 1 kilogram, of marijuana along with a scale, rolling papers, and a grinder.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.North Dakota Man Pleads Guilty to False StatementRead the Press Release
United States Attorney Brendan V. Johnson announced that Joshua James Martin, age 27, of Bismarck, North Dakota, appeared before U.S. District Judge Charles B. Kornmann on September 9, 2013, and pled guilty to an Amended Superseding Information that charged him with False Statement.
The maximum penalty upon conviction is 5 years of imprisonment and/or $250,000 fine, up to 3 years of supervised release, an additional 2 years of supervised release upon revocation, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an incident wherein Martin, on December 24, 2011, traveled to McLaughlin, South Dakota, to visit his family over the Christmas holiday. Martin spent the majority of the evening socializing with some of his cousins at his aunt’s house. At some point in the evening, Martin and a female person at the gathering engaged in a sexual encounter. Martin went back to Bismarck shortly after the encounter and went to the hospital and reported he had been raped, when he knew it was not true.
Because the encounter happened on the Standing Rock Reservation, a Federal Bureau of Investigation agent was sent to interview Martin. He initially persisted in his claim of rape knowing it was not true, and an investigation was opened by South Dakota authorities. The false statements made by Martin had a material effect on the investigation conducted by the Federal Bureau of Investigation in the District of South Dakota.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Martin was released on bond pending sentencing, which has been set for December 2, 2013.Nine Charged in Federal Drug Trafficking, Money Laundering ConspiraciesRead the Press Release
CORPUS CHRISTI, Texas – Several individuals have been taken into custody following the return of two separate, but related federal indictments alleging various drug trafficking and money laundering charges, announced United States Attorney Kenneth Magidson.
The first sealed indictment, returned Aug, 28, 2013, was unsealed this morning upon the arrests of Roberto Ruiz aka “Bobby,” 37, Mario Enrique de la Fuente, 36, Leonel Mendoza Diaz aka “Masacuata,” 39, and Jose Luis Guerrero aka “Pana,” 40, all of Brownsville. They are expected to make their initial appearances before U.S. Magistrate Judge Janice B. Ellington in Corpus Christi tomorrow. Rodolfo Ruiz Jr. aka “Pollo,” 25, also of Brownsville, is charged in the indictment but not as yet in custody.
Two others - Peter Morales aka “Pirucha,” 30, of Houston, and Ricardo Roberto Olivas aka “Bugs,” 41, of Brownsville, are also charged but currently in state custody. They are expected to make an initial appearance before a U.S. magistrate judge in Corpus Christi on the federal charges in the near future.
The defendants are charged with conspiring from Jan. 1, 2005 to Aug. 28, 2013, to possess with intent to distribute more than five kilograms of cocaine. If convicted of this offense, all face a minimum of 10 years and up to life imprisonment and a possible $10 million fine.
In addition, Roberto Ruiz, Rodolfo Ruiz, de la Fuente and Guerrero allegedly conspired during the same time period to launder the proceeds from distributing controlled substances and also face, upon conviction, a maximum 20 years imprisonment and $500,000 fine.
The indictment also includes a notice of forfeiture of a property owned by Roberto Ruiz.
A separate indictment, returned Sept. 11, 2103, and unsealed today, charges Ricardo Estrada aka “Ricky,” 30, and Alfredo Reyes Jr., 32, both of Brownsville, with possessing and conspiring to possess with intent to distribute 11.06 kilograms of cocaine. Estrada was taken into custody while Reyes is currently considered a fugitive. If convicted, they also face up to life in prison and a $10 million fine.
Warrants remain outstanding for the arrests of Reyes and Rodolfo Ruiz. Anyone with information about their whereabouts is asked to contact the U.S. Marshals Service at 1-877-WANTED2 (1-877-926-8332).
The investigation into these indictments are being conducted through a joint effort by the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Customs and Border Protection, Texas Department of Public Safety, Cameron County District Attorney’s Office, Cameron and Willacy County Sheriff’s Offices, and the Brownsville, Port Isabel, Harlingen and San Benito Police Departments. The cases will be prosecuted in Corpus Christi by Assistant United States Attorney Michael Hess.
Newark Man Charged in Armed Robberies of New Jersey StoresRead the Press Release
NEWARK, N.J. – FBI special agents arrested a Newark, N.J., man in Newark this morning for alleged offenses in connection with armed robberies of a Krauszers Food Store in West Orange, N.J., and a Subway restaurant in Verona, N.J., U.S. Attorney Paul J. Fishman announced.
Antwon Yarbrough, 27, is charged by complaint with two counts of committing a Hobbs Act robbery and one count of using a firearm during a crime of violence. He appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark and was detained.
According to the criminal complaint unsealed today:
On April 24, 2013, Yarbrough and another individual entered a Krauszers in West Orange wearing dark hoodies, face masks and gloves. Yarbrough used a plastic zip tie to secure the door from the inside while the other individual pointed a gun at the clerk and pushed the clerk to the floor. Yarbrough bound the hands and feet of two other individuals in the store, striking one in the head with his forearm. The other robber tied up the clerk with zip ties and struck the clerk’s head with the gun. Yarbrough and the other robber then emptied the cash register, stole several cartons of cigarettes and fled.
On May 20, 2013, Yarbrough and two other individuals entered a Subway restaurant in Verona, again wearing dark hoodies, face masks, and gloves. The two robbers accompanying Yarbrough brandished firearms. After entering the restaurant, the robbers restrained a Subway employee with zip ties, emptied the cash register, and fled.
The Hobbs Act charges each carry a maximum penalty of 20 years in prison. The charge of brandishing a firearm during a crime of violence carries a maximum penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to any other prison term. Each count also carries a maximum fine of $250,000, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s arrest. He also thanked the Belleville, Bloomfield, Kearny, Linden, Maplewood, Newark, Paramus, Verona and West Orange Police Departments, along with the New Jersey State Police and the Essex County Prosecutor’s Office, for their work on this case.
The government is represented by Assistant U.S. Attorneys Jamari Buxton and Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendants are considered innocent unless and until proven guilty.
13-367
Defense counsel: Stacy Biancamano Esq., West Orange, N.J.
Yarbrough, Antwon Complaint
New Iberia Man Pleads Guilty to Theft of Government FundsRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Buddy Estelle, 52, of New Iberia, La., pleaded guilty before U.S. Magistrate Judge Patrick Hanna to taking more than $86,000 in Social Security Administration (SSA) benefits to which he was not entitled.
According to evidence presented at the guilty plea, Estelle started receiving SSA disability payments in 1984. While attending a routine meeting concerning his benefit eligibility on Feb. 8, 2011, he told SSA staff members at the New Iberia office that he had not worked since 2000. During the guilty plea, Estelle admitted that he has been self-employed since 2000. He owns a business that buys and crushes cars. The SSA payments that Estelle improperly received totaled $86,261.30.
Estelle faces up to five years in prison, a $250,000 fine, restitution, and three years of supervised release for theft of government funds. A sentencing date of January, 10, 2014 was set.
The Social Security Administration and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney James T. McManus is prosecuting the case.
Navajo Man Pleads Guilty to Sexually Abusing a Child in San Ildefonso PuebloRead the Press Release
ALBUQUERQUE – Samuel Billy, 49, an enrolled member of the Navajo Nation who resides in El Rancho, N.M., which is located in San Ildefonso Pueblo, pleaded guilty this morning to a child sexual abuse charge. Under the terms of his plea agreement, Billy will be sentenced to 20 years in federal prison followed by a term of supervised release to be determined by the court. Billy will be required to register as a sex offender after he completes his prison sentence.
Billy’s guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough and Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI.
Billy was arrested on Jan. 7, 2013, based on a criminal complaint alleging that he sexually abused a child less than 12 years old in early Nov. 2012. According to the complaint, Billy sexually abused the child victim, who was left in his care, in his residence in San Ildefonso Pueblo on at least two occasions. Billy subsequently was charged in a four-count superseding indictment with three counts of aggravated child sexual abuse and one count of abusive sexual contact. The indictment alleged that Billy sexually abused the child victim on four separate occasions between Nov. 1, 2012 and Dec. 31, 2012, in a location within San Ildefonso Pueblo.
This morning, Billy pleaded guilty to a felony information charging him with sexual abuse and admitted touching the child victim’s genitals while the victim was sleeping and incapable of appraising the nature of the conduct.
Billy has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. The charges in the superseding indictment will be dismissed after Billy has been sentenced.
This case was investigated by the Santa Fe office of the FBI and is being prosecuted by Assistant U.S. Attorney Niki Tapia-Brito 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/.
Multiple Defendants Charged in Fraud Scheme to Obtain Federal Student AidRead the Press Release
OAKLAND – A federal grand jury in Oakland returned an Indictment on August 15, 2013, charging Kyle Edward Moore, Cortio Detrice Wade, Marcel Devon Bridges, and Derricka Lynn Fluker with conspiracy to commit financial aid fraud and multiple counts of wire fraud, announced United States Attorney Melinda Haag and Natalie Forbort, Special Agent in Charge of the United States Department of Education, Office of Inspector General’s Western Regional Office.
According to the Indictment, which was unsealed yesterday, Moore is alleged to have conspired with Wade, Bridges, and Flucker to obtain federal student aid funds offered under the Title IV Federal Student Assistance Program. Moore and his co-defendants obtained the aid, in the form of loans and grants, by preparing and transmitting fraudulent Free Applications for Federal Student Aid (FAFSAs) to the U.S. Department of Education.
In carrying out the fraud scheme, Moore, Wade, Bridges, and Flucker recruited third-parties to serve as “straw students” and then assisted the straw students in preparing, signing, and transmitting fraudulent FAFSAs knowing that many of the straw students were not eligible to obtain Title IV funds. Among other things, the straw students had not obtained high school diplomas or a recognized equivalent, and had no intention of attending school or using the funds for educational purposes. After receiving the fraudulently obtained student loan funds, Moore and his co-defendants would share the funds among themselves and sometimes with the straw students.
Moore, Bridges, and Fluker were arrested on September 11, 2013, in the Northern District of California and made their initial appearances in federal court in Oakland yesterday morning. Wade was arrested in Phoenix, Arizona, and made her initial appearance in the District of Arizona yesterday as well. The three defendants that appeared in federal court in Oakland were each released on bonds. Moore, Bridges, and Fluker are scheduled to appear next on October 18, 2013, at 9:30 a.m. before The Honorable Jon S. Tigar, U.S. District Judge.
The maximum statutory penalty for each count of conspiracy to commit financial aid fraud, in violation of 18 U.S.C. § 371, is five years in prison, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. The maximum penalty for each count of wire fraud, in violation of 18 U.S.C. § 1343, is twenty years in prison, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Wade M. Rhyne is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the Department of Education, Office of the Inspector General and the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development, Office of the Inspector General.
(Moore indictments )
Mobridge Man Sentenced for Escape from CustodyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mobridge, South Dakota, man convicted of Escape from Custody was sentenced on September 9, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Gaylen Paul Sampson, a/k/a Thurman Paul Sampson, age 38, was sentenced to 4 months of imprisonment and ordered to pay $100 to the Federal Crime Victims Fund.
On April 10, 2013, Sampson escaped from custody of the Bureau of Prisons while at the Community Alternatives of the Black Hills facility. He pled guilty to the charge on June 7, 2013.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Wayne Venhuizen prosecuted the case.
Sampson was immediately turned over to the custody of the U.S. Marshals Service.Mexican National Pleads Guilty; Sentenced for Illegal Re-entryRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Fernando Cartugano-Sol, 27, a citizen and national of Mexico, pleaded guilty before U.S. Judge William M. Skretny, to illegal re-entry by an already removed alien. The defendant was immediately sentenced to time served.
According to Assistant U.S. Attorney Aaron J. Mango, on June 18, 2013, Cartugano-Sol was found in the United State working on a farm in Mount Morris, N.Y. When confronted by law enforcement officers, the defendant admitted that he was in the United States illegally. It was determined after an immigration record check that Cartugano-Sol did not make a legal entry into the United States and that he had been removed from the United States previously on September 8, 2011.
The plea and sentencing are the result of an investigation by United States Customs and Border Protection Officers, under the direction of James Engleman, Director of Field Operations.Mastermind of $11 Million Detroit Medicare Fraud Scheme Sentenced to 50 Months in PrisonRead the Press Release
Muhammad Shahab, the mastermind of an almost $11 million Medicare fraud scheme in Detroit, was sentenced today to 50 months in prison.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
Shahab, 53, was sentenced by U.S. District Judge Denise Page Hood in the Eastern District of Michigan. In addition to his prison term, Shahab was sentenced to three years of supervised release and was ordered to pay more than $10.8 million in restitution, jointly and severally with his co-defendants.
Shahab pleaded guilty to one count of health care fraud in February 2010. According to information contained in plea documents, Shahab helped finance and establish two Detroit-area home health agencies, Patient Choice Home Healthcare Inc. (Patient Choice) and All American Home Care Inc. (All American). Shahab admitted that while operating or being associated with both home health agencies, he and his co-conspirators billed Medicare for home health visits that never occurred.
Shahab admitted that he and his co-conspirators recruited and paid cash kickbacks and other inducements to Medicare beneficiaries in exchange for the beneficiaries’ Medicare numbers and signatures on documents falsely indicating that they had visited Patient Choice and All American for the purpose of receiving physical or occupational therapy. Shahab admitted that a large number of the beneficiaries were neither homebound nor in need of any physical therapy services.
Shahab also admitted to securing physician referrals for medically unnecessary home health services through the payment of kickbacks to physicians or individuals associated with physicians. Shahab employed several physical therapists and physical therapy assistants to sign medical documentation needed to begin billing for home health care services, including initial payments and payments for each visit to a Medicare beneficiary. Shahab acknowledged that he knew the physical therapists and physical therapy assistants were not actually conducting a large majority of the visits or treating a large majority of the patients, and confessed to billing and receiving payment from Medicare for services not rendered or medically unnecessary services.
Between approximately August 2007 and October 2009, Shahab and his co-conspirators at Patient Choice and All American submitted approximately $10.8 million in claims to the Medicare program for physical and occupational therapy services that were never rendered or were medically unnecessary.
This case was investigated by the FBI, HHS-OIG and the Internal Revenue Service and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case was prosecuted by Deputy Chief Gejaa Gobena, Assistant Chief Catherine Dick and Trial Attorney Niall O’Donnell of the Criminal Division’s Fraud Section.Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Massive Sentences Handed Down for Violent 2010 News Year’s Eve Bank Robbery, Among OthersLeader Gets 90 YearsRead the Press Release
HOUSTON – With the sentencing of six defendants today, 11 of the total 14 charged in a series of armed Houston area bank robberies, including the robbery of the Pearland Chase branch bank on Dec. 31, 2010, have now been ordered to prison, announced United States Attorney Kenneth Magidson. The Pearland Bank Robbery itself resulted in a nearly six-hour standoff with law enforcement.
Larry Smith, 37, and Raymond Tierra Johnson, 32, were convicted by a federal jury in March 2013 after five days of trial, while Jeremy Benton, 22, Glenn Bonner, 41, Gregory Wayne Ferguson, 21, Arlington Davis Wilkes aka AD, 23, Carl Ray Turner Jr. aka CT, 27, Edward Johnson, 29,John Berley Scott aka Fresh, 31, Derrick Lashon Paley aka Crybaby, 35, Michael Maurice Wilson Jr. aka Blue/Mikey Poo, 26, Roderick Marshall Beagle, 41, Michael Dushon Duncan aka Mikey, 21, and Kelvin Dewayne Thomas aka Little Kevin, 23, each had previously entered guilty pleas.
Today, U.S. District Judge Gray Miller, who accepted the guilty pleas and presided over the trial, sentenced Raymond Johnson
Benton, Bonner, Scott, Wilson and Wilkes to varying terms of federal imprisonment. Johnson was considered to be the “muscle” of the crew and, on several occasions, assaulted and/or pistol-whipped victims indiscriminately. He received 60 months for conspiracy to commit bank robbery which will run consecutive to two concurrent terms of 300 months on each of two counts of bank robbery. He was further sentenced to 84 and 300 months for each of two counts of using a firearm during the commission of the crime which are to be served consecutively to each other and to other sentences imposed for a total term of 744 months or 62 years in federal prison.Bonner told officers during the standoff that he was going to start to kill victims within minutes if his demands weren’t met. Specifically, he demanded the officers move their vehicles and depart so he could flee the scene. Judge Miller imposed a total sentence for him of 257 months – 137 for the bank robbery charges in addition to 120 months for use of a firearm.
Benton received 151 months for conspiracy to commit and committing bank robbery in addition to a consecutive 84 months for using a firearm, while Scott and Wilson received respective sentences of 151 and 168 months for the conspiracy and bank robberies as well as consecutive 120 months terms for the firearm violations resulting in 271 and 288 months. Wilkes was handed a sentence of 120 months for his role in the conspiracy.
At the hearing today, the court heard testimony from two victims greatly impacted by the defendants’ actions. One specifically mentioned the individual trauma she has experienced and admits suffering from Post-Traumatic Stress Syndrome as a result of the horrific event. Another victim, also a witness at the trial, described the event as a life changing experience. That victim had been beaten in the course of the robbery and was off work for a great deal of time. Both victims also reported they have been unable to return to the banking industry for work and have even been unable to enter a bank since the violent event. The government also provided evidence to the court that during the course of the bank robbery conspiracy, more than 80 victims have been identified.
Yesterday, Smith, determined to be a leader in the overall conspiracy, received a total sentence of 90 years in federal prison. He was ordered to serve 300 months for the varying counts of bank robbery to be served consecutively to 60 months for the conspiracy charge. He further received respective sentences of 300, 300 and 120 months on three convictions of use of a firearm in furtherance of a crime of violence. Those are to be served consecutively to each other and the other sentences imposed for a total of 1080 months in federal prison. At Smith’s hearing yesterday, Assistant United States Attorney (AUSA) Kebharu Smith stated that the sentence imposed should serve as a message to those that have robbed, are robbing or are thinking of robbing banks in the Southern District of Texas, that you will face stiff consequences.
Edward Johnson, Thomas and Duncan had previously received their sentences for their respective bank robbery pleas as well as for using a firearm in furtherance of a crime of violence. Edward Johnson received 60 months plus an additional 24 months and Thomas was ordered to serve 60 months plus 10 months, while Duncan was ordered to serve 87 months and a consecutive 120 months for the use of a firearm. Ferguson received a sentence of 12 months and a day, while Turner, Paley and Beagle have yet to be sentenced.
After trial, Smith was convicted by a jury of committing bank robbery of the Wells Fargo branches on 10978 Grant Road and 13150 Louetta on Aug. 23, 2010, and Nov. 2, 2010, respectively, Wells Fargo locations at 14001 Memorial and 12859 Kimberly Lane in Houston, both on Oct. 7, 2010, the Comerica Bank on Sept. 13, 2010, and the Citibank at 14104 NW Freeway. The jury further found he used a firearm in the offenses on Sept. 14 and Nov. 2, 2010. Smith and Johnson were both convicted of robbing the Chase Bank at 24230 Northwest Freeway in Cypress and for using a firearm in the offense. Johnson was convicted of bank robbery for the Dec. 31, 2010, robbery of the Chase Bank at 1915 North Main in Pearland and for using a firearms in the commission of that crime.
The conspiracy involved “casing” banks for robberies and the selection of banks that did not have security guards or bullet resistant bandit barriers Evidence at trial indicated the conspirators used lookouts during robberies and used stolen or “hot” cars as get-a-way vehicles to commit the offenses. The conspirators recruited others to assist them to rob the banks in exchange for a share of the proceeds taken.
Evidence and testimony revealed most bank robberies were effected through the use of demand notes that Smith had written and through the brandishing and firing of firearms during the course of the robbery to ensure compliance with their demands.
Testimony revealed some of the violence witnessed by those in the banks and the threats made to gain compliance.The charges against these defendants are the result of the efforts of the FBI Bank Robbery Task Force with the substantial assistance and cooperation of police departments in Houston, Pearland and Friendswood, Harris County Sheriff’s Office, Harris County Precinct 5 Constable’s Office, Harris County District Attorney’s Office, Crimestoppers and the Brazoria County District Attorney’s Office. The United States Attorney wishes to recognizes each of these investigative agencies as well as the security departments of Wells Fargo and JP Morgan Chase for their outstanding efforts.
AUSAs Suzanne Elmilady and Kebharu Smith are prosecuting the case.
Massachusetts Businessman Indicted for Tax CrimesRead the Press Release
The Justice Department and Internal Revenue Service (IRS) announced that Richard L. Furnelli, formerly of Holyoke and South Hadley, Mass., was indicted today in Springfield, Mass. Furnelli is charged in a nine-count indictment with one count of obstructing the internal revenue laws, four counts of tax evasion and four counts of failing to file his individual income tax returns.
The indictment alleges that from 1994 to 2009, Furnelli obstructed the IRS’s ability to identify his income and compute the income taxes due and owing by using nominee owners to disguise his ownership interests in a network of businesses and assets, including entities operating an adult entertainment venue called the Gold Club.
The indictment also alleges Furnelli earned over $2 million in total income from 2006 to 2009 and evaded his individual income taxes for that time period by, among other things, directing the payment of his income to the nominee entity, RLF Ventures LLC, utilizing a bank account in the name of a nominee in order to deposit his income and pay his personal expenses, as well as using cash extensively. The indictment further alleges that Furnelli failed to file his individual income tax returns from 2006 to 2009.
Furnelli faces a maximum punishment of three years in prison for the charge of obstructing the internal revenue laws; five years for each count of evading his individual income taxes; and one year for each count of failing to file his individual income tax returns. He faces a maximum fine of $100,000 on each count of failing to file his income tax returns and $250,000 for each of the other counts. An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case was investigated by special agents of the IRS - Criminal Investigation. Tax Division Trial Attorneys Thomas Voracek and Mark McDonald are prosecuting the case.Manager of Metal Recovery Business Sentenced for Environmental ViolationsRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – A 57-year-old Quinlan, Texas man has been sentenced for environmental violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
William “Bill” Lafon Musgrove pleaded guilty on Aug. 7, 2013, to negligent release of an extremely hazardous substance and was sentenced to 36 months of probation today by U.S. Magistrate Judge Don D. Bush. Musgrove was also fined $10,000.
According to information presented in court, in June of 2011, Musgrove was the vice president of and operations manager of Industrial Precious Metals Recovery Incorporated (IPMR), in Royse City, Texas. During that time, he allowed their metal recovery process to release approximately ten pounds of Nitrogen Oxides, or “NOx” within a 24 hour time period into the ambient air at ground level through an open doorway, instead of utilizing the company’s air scrubber which was broken at the time. Musgrove admitted that he should have known that releasing NOx in that manner would place people in imminent danger of death or serious bodily injury. Fortunately, no actual injuries occurred.
Federal environmental regulations characterize Nitrogen Oxides as an “extremely hazardous substance.” At the time, the IPMR facility in Royse City was adjacent to other commercial facilities with employees that were present during the NOx emissions. The facility has since closed.
This case was investigated by the U.S. Environmental Protection Agency, Criminal Investigations Division, Region VI, Dallas, Texas, and the Texas Commission on Environmental Quality (TCEQ) Environmental Crimes Unit and prosecuted by Assistant U.S. Attorney Jim Noble.London Woman Sentenced 30 Years for Child Pornography OffensesRead the Press Release
LONDON, KY - Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Stewart Walker, London Police Chief; and Perrye Turner, Special Agent in Charge, FBI, jointly announced today that a London, KY., woman, who photographed two children engaged in sexually explicit conduct, was sentenced to 30 years in federal prison.
On Tuesday, U.S. District Judge Amul Thapar sentenced 37 year-old Corrine Sherman for producing child pornography, possessing child pornography, and conspiracy. Sherman’s husband and co-defendant, Rickey Sherman, died of a heart attack, while in custody, in July.
In February of this year, a jury convicted both at trial. Evidence presented established that, in 2008 and continuing throughout much of 2011, the Shermans conspired to produce child pornography. During this time period, the couple produced at least 40 images of two, prepubescent children engaged in sexually explicit conduct.
The investigation started when state authorities received a tip that Rickey Sherman had violated conditions of his probation from a previous offense. During that investigation, Corrine Sherman attempted to hide a camera from law enforcement. The camera was eventually recovered and contained the child pornography images.
Rickey Sherman had owned Truck Town Repair in Laurel County. He and his wife were indicted in September 2011.
Under federal law, Corrine Sherman will have to serve at least 85 percent of her prison sentence.
The investigation was conducted by Sargent Joe Smith, with the London Police Department, and the FBI. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Jason Parman.
London Woman Sentenced 30 Years for Child Pornography OffensesRead the Press Release
LONDON, KY -
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Stewart Walker, London Police Chief; and Perrye Turner, Special Agent in Charge, FBI, jointly announced today that a London, Ky., woman, who photographed two children engaged in sexually explicit conduct, was sentenced to 30 years in federal prison.
On Tuesday, U.S. District Judge Amul Thapar sentenced 37 year-old Corrine Sherman for producing child pornography, possessing child pornography, and conspiracy. Sherman’s husband and co-defendant, Rickey Sherman, died of a heart attack, while in custody, in July.
In February of this year, a jury convicted both at trial. Evidence presented established that, in 2008 and continuing throughout much of 2011, the Shermans conspired to produce child pornography. During this time period, the couple produced at least 40 images of two, prepubescent children engaged in sexually explicit conduct.
The investigation started when state authorities received a tip that Rickey Sherman had violated conditions of his probation from a previous offense. During that investigation, Corrine Sherman attempted to hide a camera from law enforcement. The camera was eventually recovered and contained the child pornography images.
Rickey Sherman had owned Truck Town Repair in Laurel County. He and his wife were indicted in September 2011.
Under federal law, Corrine Sherman will have to serve at least 85 percent of her prison sentence.
The investigation was conducted by Sargent Joe Smith, with the London Police Department, and the FBI. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Jason Parman.
Local Man Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – LARRY BRADSHAW was sentenced to 18 months in prison and ordered to pay $89,245 in restitution for his scheme to defraud a local elderly lady by obtaining a reverse mortgage on her home, then using the money for himself, including the purchase of a car and illegal drugs.
According to court documents, in July 2008, Bradshaw met a lady and expressed a need for a temporary residence. She agreed to allow him to live with her and during that time, Bradshaw befriended her and gained her confidence. He told her he was acting in her best interest, instead, he used his ability to access her banking accounts and funds to support his own lifestyle without her knowledge or consent. Bradshaw set up a durable power of attorney and used it to obtain a reverse mortgage on the lady’s residence. He represented to Frontier Mortgage that he intended to use the proceeds from the reverse mortgage for her living expenses and home rehabilitation. Instead, he used the money for himself, including the purchase of an automobile and illegal drugs, totaling over $70,000. Additionally, Bradshaw began receiving federal disability in 2007 and was required to fill out forms verifying his continued disability and financial status. In December 2008, he falsified the verification form by failing to report that he received funds from the victim’s reverse mortgage.
Larry Bradshaw, St. Louis City, pled guilty in May to one felony count of wire fraud and one felony count of theft of government money. He appeared today for sentencing before United States District Judge Rodney W. Sippel.
This case was investigated by the Federal Housing Finance Agency-Office of Inspector General, U.S. Postal Inspection Service, HUD-Office of Inspector General and the Social Security Administration-Office of Inspector General. Assistant United States Attorney Dianna Collins handled the case for the U.S. Attorney's Office.Little Eagle Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on September 9, 2013, by U.S. District Judge Charles B. Kornmann.
Ira Weasel, age 32, was sentenced to 12 months and 1 day of imprisonment, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Weasel was indicted for the above charge by a federal grand jury on March 13, 2013. He pled guilty on May 20, 2013.
The charge stems from an incident occurring on December 24, 2012, in which Weasel was socializing at his sister’s house along with the victim. At some point during the evening, Weasel and the victim got into a verbal altercation. Weasel pushed and pinned the victim against the wall, placed his hands around the victim’s neck and lifted her off her feet. Others attempted to free the victim from Weasel’s grasp, but he fought them off and continued to strangle the victim who eventually lost consciousness. At that point, Weasel released her, causing her to fall face first on the floor. The victim then began to convulse and remained unconscious for several minutes. Once she regained consciousness, she left and notified the authorities.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Weasel was immediately turned over to the custody of the U.S. Marshals Service.Las Cruces Man Arrested for Making False Bomb ThreatsRead the Press Release
ALBUQUERQUE – This morning, Luis Lucero-Loya, 23, of Las Cruces, N.M., made his initial appearance in federal court on a criminal complaint charging him with making false bomb threats. If convicted of the offenses charged in the complaint, Lucero-Loya faces up to ten years of imprisonment and a $250,000 fine. Lucero-Loya is temporarily detained pending a detention hearing which has yet to be scheduled.
According to the criminal complaint, Lucero-Loya made false bomb threats on five different occasions between Aug. 18, 2013 and Aug. 31, 2013. The complaint alleges that, on each of the five occasions, Lucero-Loya placed “911” calls to Mesilla Valley Dispatch and falsely reported that there were explosives devices or bombs in specific commercial businesses in Las Cruces. As a result of the bomb threats, the businesses were evacuated and allegedly incurred significant losses.
“In a post-9/11 world, we must take bomb threats seriously. False bomb threats drain our already overburdened public safety agencies and prevent them responding to true emergencies. They also create significant stress and disruption to those threatened,” said Acting U.S. Attorney Steven C. Yarbrough. “We therefore must diligently investigate and prosecuted these cases.”
“There can be no tolerance for those who would jeopardize public safety by making false bomb threats,” said Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI. “The FBI is proud of the work of its Special Agents who vigorously investigated this case with the Las Cruces Police Department and the FBI’s Southern New Mexico Safe Streets Gang Task Force.”
Chief Richard S. Williams of the Las Cruces Police Department stated, “This investigation culminated in a prompt arrest because of the outstanding cooperation between the Federal Bureau of Investigation, Las Cruces Police Department and the impacted commercial businesses. We are extremely grateful that this offender is being prosecuted for allegedly committing dangerous offenses and that the employees and customers of the victim businesses can return to a safe environment.”
Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Las Cruces Police Department and the FBI’s Southern New Mexico Safe Streets Gang Task Force, and is being prosecuted by Assistant U.S. Attorney Shaheen P. Torgoley of the U.S. Attorney’s Las Cruces Branch Office.
Kamiah Man Sentenced in Drunk-Driving Manslaughter CaseRead the Press Release
COEUR D'ALENE – Nicholas P. Allman, 23, of Kamiah, Idaho, was sentenced today in United States District Court to 21 months in prison for involuntary manslaughter, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Robert H. Whaley also ordered Allman to serve three years of supervised release. He pleaded guilty to the charge on June 11, 2013.
According to statements made in court, on October 28, 2011, Allman and two friends attended an outdoor party outside of Kooskia, Idaho. Witnesses at the party recalled that Allman was drinking alcohol and appeared to be intoxicated. In the early morning hours of October 29, 2011, the men left the party with Allman driving the vehicle. Approximately one hour later, Allman failed to negotiate a turn on Harris Ridge Road. His vehicle left the roadway and rolled down a steep embankment onto U.S. Highway 12 below. The three men were ejected from the vehicle. James Oatman Jr. died during the rollover and was pronounced dead at the scene. Allman’s blood was drawn by police later that morning and it was determined that he was intoxicated, having a blood alcohol level above .08.
The case was investigated by the Federal Bureau of Investigation, Idaho State Police, and Nez Perce Tribal Police, with assistance from the Idaho County Sheriff’s Office.
Internet Pharmacy Operator Sentenced to Two Years in PrisonRead the Press Release
United States Attorney Laura E. Duffy announced today that Martin Paul Bean III of Boca Raton, Florida, was sentenced by the Hon. William Q. Hayes to serve 24 months in custody for his role in a scheme to sell unapproved foreign oncology drugs to doctors in the United States. Bean had pled guilty to conspiracy to commit a number of federal offenses, including wire fraud, mail fraud, selling unapproved drugs, selling misbranded drugs, and importing merchandise contrary to law. Bean was further ordered to forfeit the Jaguar XJ he purchased with the proceeds of the scheme, and to pay restitution of $19,270 to one of the victims of his scheme.
In pleading guilty, Bean admitted that between February 24, 2005, and October 30, 2011, he operated a business (GlobalRx Store) from his residence in Florida, and unlawfully sold over $7 million of prescription oncology drugs to doctors throughout the United States. Bean ordered unapproved drugs from foreign sources, including sources in Turkey, India and Pakistan, and sold them to doctors within the United States at substantially discounted prices. Among the misbranded and unapproved drugs sold by Bean were versions of drugs marketed in the United States as Gemzar®, Taxotere®, Eloxatin®, Zometa® and Kytril®.
Bean ordered the unapproved drugs from foreign sources, and directed them to be shipped in bulk to a location in San Diego, California, where a co-conspirator would repackage and ship individual orders to specific doctors throughout the country. Accompanying the shipments to doctors would be invoices from a California wholesale pharmacy (Oberlin Medical Supply) which helped create the false and misleading appearance that the drugs were approved for use in the United States. Bean and his co-conspirators also operated a call center in Winnipeg, Canada, using toll free numbers, where orders from doctors in the United States for oncology drugs were accepted by telephone, facsimile and electronic mail.
According to court papers filed in connection with today's sentencing hearing, the investigation began in early 2010, when the Medicines & Healthcare Regulatory Agency ("MHRA," the equivalent of the FDA in the United Kingdom) advised the FDA that they had intercepted a shipment of an unapproved form of Gemzar sent from a company in Pakistan to Oberlin Medical Supply in San Diego. Gemzar is a prescription oncology drug produced by the pharmaceutical company Eli Lilly. The only FDA-approved manufacturing site for Gemzar to be sold in the United States at that time was in Indianapolis, Indiana. Gemzar is labeled and packaged in Japan, Mexico and Brazil for exclusive use in those countries, and Gemzar is also manufactured in France for all other international markets.
After further investigation, federal agents visited the business location of Oberlin and discovered numerous boxes of oncology drugs, including Eloxatin, Taxotere and Zoldria (a generic form of Zometa not approved for use in the United States), in addition to the Gemzar. The boxes bore labeling indicating that the products had been manufactured outside of the United States, and certain boxes had labels in languages other than English. None of the drugs bore the wording "Rx only," as required by U.S. law. In addition, there were boxes of Abraxane, manufactured in Illinois, which bore a stamp which said, "Imported and Marketed by Biocon Limited, Bangalore, India."
After the visit from federal agents, Oberlin Medical Supply processed no further orders on behalf of Global Rx. The lack of shipments and payments prompted Bean to contact Oberlin repeatedly, during which the owner of Oberlin (Maher Idriss) advised Bean that the sale of the imported prescription pharmaceuticals in the United States was not lawful. Idriss went so far as to forward to Bean an email from the FDA which stated that "the Food, Drug and Cosmetic Act does not permit you to import pharmaceutical drugs manufactured in a foreign country which are not intended for the U.S. market."
In spite of these warnings, Bean continued to press Idriss to return the remaining inventory of unapproved oncology drugs and pay Oberlin's outstanding balances. On May 25, 2011, Bean arrived at Oberlin and picked up 12 boxes containing the inventory of imported pharmaceuticals. Bean then drove the contraband to a hotel in the Mission Valley area, where he was later seen loading the boxes into a vehicle driven by another man.
The individual was later approached by federal agents, and surrendered to them the boxes of unapproved pharmaceuticals and a check for $300 he had received from Bean. Bean later called that individual and offered him another $2,500 to deliver some of the pharmaceuticals to doctors in and around Fremont, California. Although Bean acknowledged that one of the drugs (Zoldria) was not approved for use in the United States (a fact he had verified on the FDA's website), he nonetheless requested that the drug be delivered to several doctors in California.
After the end of their association with Oberlin, Bean and his co-conspirators renamed their company "My Rx Store," and sent promotional material to doctors in the same format as Global Rx, offering the same unapproved drugs as Global Rx, and using the same toll-free number. Bean personally received over $865,000 from the scheme.
"This defendant blithely put the public's health at risk so he could line his own pockets," said Derek Benner, special agent in charge for Homeland Security Investigations San Diego. "This sentence should serve as a stern reminder about the potential consequences facing those who deal in imposter drugs with no regard for the dangers they pose to patients and consumers. HSI will continue to work with its law enforcement partners here and abroad to prevent the distribution of counterfeit and misbranded pharmaceuticals."
The prosecution of Bean is related to United States v. Maher Idriss, Criminal Case No. 12cr1775-WQH, in which Idriss pleaded guilty to conspiring to import merchandise contrary to law. At the time of his plea, Idriss admitted that between 2006 and 2011, he conspired with the owners and operators of Global Rx Store to import and distribute medication (primarily oncology drugs) not intended for sale in the United States. Idriss acknowledged that the owners of Global ordered the foreign oncology drugs intended for sale in countries such as Turkey, Pakistan, India and the United Kingdom and arranged for them to be shipped directly from the foreign source to Oberlin. Idriss admitted that he received the foreign oncology drugs, stored them and later shipped them out to doctors within the United States, as directed by the owners of Global. After receiving payment from the ordering doctors, Idriss wire transferred payments to the source of the drugs abroad and to an account in Canada controlled by Bean and his co-conspirators. Idriss is scheduled to be sentenced before District Judge Hayes on October 21, 2013 at 9:00 a.m.
The Food, Drug & Cosmetic Act ("FDCA") is intended to assure, among other things, that all drugs manufactured and distributed within the United States are safely manufactured, made from appropriate ingredients, and properly labeled. To enforce this law, the FDA regulates the manufacture, processing, labeling, and distribution of all drugs shipped and received in interstate commerce, including the wholesale distribution of prescription drugs. Under the FDCA, anyone manufacturing, preparing, compounding, or processing prescription drugs for sale and use in the United States must annually register with the FDA as a drug establishment, and provide a list to the FDA of the drugs which they manufacture for commercial distribution, and a copy of all labeling. This registration requirement applies equally to drug establishments located outside of the United States that import their drugs into the United States. Under the FDCA, a drug is deemed misbranded if it was manufactured at any domestic or foreign establishment and that drug was not annually listed with the FDA by the establishment as one of the drugs which was manufactured for commercial distribution in the United States at that location.
Under the FDCA, no person may offer for sale in the United States any drug not approved by the FDA. The approval process addresses the chemical composition of the drug, the drug's safety and effectiveness, and elements of the drug's distribution, such as the methods used in, and the facilities and controls used for, the manufacture, processing, and packing of the drug, as well as the labeling to be used for the drug. The approval process is specific to each manufacturer and each product and its labeling. Drugs manufactured outside the United States which are not intended for use in the United States do not go through this approval process and are considered unapproved drugs.
Any prescription drug that does not bear the label "Rx only" is deemed to be misbranded. Moreover, all wording required by the FDCA to appear on drug labels and labeling sold in the continental U.S. must be in the English language. If a drug is manufactured in the United States and exported to other countries, is unlawful for anyone other than the original manufacturer to bring that same drug back into the United States.
DEFENDANT Case Number: 12cr3734-WQH Martin Paul Bean, III SUMMARY OF CHARGESCount 1 - Conspiracy, in violation of Title 18, United States Code, Section 371. Maximum Penalty: 5 years in custody and/or $250,000 fine.
INVESTIGATING AGENCYFood and Drug Administration, Office of Criminal Investigations; Department of Homeland Security, Immigration and Customs Enforcement; Federal Bureau of Investigation; Postal Inspection Service
Indictment Charges Two as Would-Be Home Invasion RobbersRead the Press Release
PHILADELPHIA - Clifton McLean, 31, and Leroy Winston, 31, of Philadelphia, Pennsylvania, were charged today by Indictment with conspiracy to commit a Hobbs Act robbery, drug, gun, and other offenses, announced United States Attorney Zane David Memeger. According to the indictment, between Jun 10, 2013 and August 14, 2013, McLean and Winston sought the help of another person in arranging the home invasion robbery of drug dealers. The defendants allegedly planned to steal, at gunpoint, eight to nine kilograms of cocaine. It is further alleged that on August 14, 2013, the defendants attempted, unsuccessfully, to carry out the armed home invasion robbery. The plan was interrupted by law enforcement.
In addition to the conspiracy, the indictment charges McLean and Winston with attempted commission of a Hobbs Act robbery, aiding and abetting the attempted commission of a Hobbs Act robbery, conspiracy to possess with the intent to distribute 5 kilograms or more of cocaine, attempted possession with intent to distribute 5 kilograms or more of cocaine, using a firearm during the commission of a crime of violence or drug trafficking crime, and being felons in possession of a firearm.If convicted, the defendants face a maximum possible sentence of life imprisonment. All of the defendants face a ten year mandatory minimum sentences for the offenses to be followed by a five year mandatory minimum consecutive sentence on the 924(c) count.
The case was investigated by ATF and is being prosecuted by Assistant United States Attorney Jeanine Linehan.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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