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Thursday 25 July 2013
Federal Grand Jury in Fort Wayne Returns IndictmentsRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
FortWayne,Ind. TheUnitedStatesAttorney'sOfficeannouncedthataGrand JurysittinginFort Wayne,Indiana,returnedthefollowingIndictmentsonJuly24,2013:
Keana M.Davis,33,andAmandaMcBride,30,bothofFortWayne,Indianaarechargedina6 countIndictment(respectively)withconspiringtodistributeanddistributionandpossessionwithintentto distributecocaineandcocainebase,commonlyknownas“crack”fromonoraboutApril15,2013and continuingtoonoraboutJune27,2013,anddistributionofcocainebase,commonlyknownas“crack”or aboutApril15,2013.Davisisalsochargedwithdistributionofcocainebase,commonlyknownas “crack”onoraboutApril24,2013,May3, 2013,andMay28,2013.McBridewasalsochargedwith profitingfrommaintainingadruginvolvedpremisesfromonoraboutApril15,2013,toonoraboutJune 27,2013.Thesechargeswerefiledasaresultofaninvestigationby theFederalBureauofInvestigation SafeStreetsTaskForceandtheFortWaynePoliceDepartment.ThisIndictmentalsoseekstheforfeiture ofanypropertyderivedthecommissionofsuchcharges.Thiscasehasbeenassignedtoandwillbe prosecutedbyAssistantUnitedStatesAttorneyAnthonyW.Geller.
RickeyD.James,Sr.,55,ofFortWayne,Indiana,ischargedinatwocountIndictmentwithbeing afeloninpossessionofafirearmandammunitiononoraboutMay29,2013andpossessinganunregistered firearmonoraboutMay29,2013.ThischargehasbeenfiledasaresultofaninvestigationbytheBureau ofAlcohol,Tobacco,FirearmsandExplosivesandtheFortWaynePoliceDepartmentBombSquad.This casehasbeenassignedtoandwillbeprosecutedby AssistantUnitedStatesAttorneyTinaL.Nommay.
WilliamSallee,20,ofOssian,Indiana,BrandonBetz,21,ofBluffton,Indiana,KameronKutzli, 22,ofDunkirk,IndianaandTysonAllen,26,ofBluffton,Indianaareeachchargedinasinglecount IndictmentwithretaliatingagainstawitnessonoraboutJune5,2013.Thischargewasfiledasaresultof aninvestigationbytheBureauofAlcohol,Tobacco,FirearmsandExplosives,UnitedStatesMarshals Service,andtheWellsCountySheriff’sDepartment.Thiscasehasbeenassignedtoandwillbe prosecutedbyAssistantUnitedStatesAttorneyAnthonyW.Geller.
TheUnitedStatesAttorney'sOfficeemphasizedthatanIndictmentismerelyanallegationand thatallpersonschargedarepresumedinnocentuntilandunlessprovenguiltyincourt.
Ifconvictedincourt,anyspecific sentencetobeimposedwillbedeterminedbythejudgeaftera considerationoffederalsentencingstatutesandtheFederalSentencingGuidelines.
East St. Louis Man Pleads Guilty to Firearm and Controlled Substance OffenseRead the Press Release
On July 24, 2013, Antoine T. Thomas, a thirty-seven year old East St. Louis, Illinois, man pled guilty in federal district court, in East St. Louis, to unlawful possession of a firearm by an unlawful user of a controlled substance, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Thomas is scheduled for sentencing on October 25, 2013, at which at which time he faces a maximum potential sentence of 10 years’ in prison and a fine of up to $250,000, not more than 3 years’ of supervised release after his prison term, and a mandatory special assessment of $100. Thomas also agreed to forfeit the firearms.
Court proceedings revealed that on June 29, 2010, law enforcement officers executed a search warrant at a residence in East St. Louis, Illinois. A search of the home led to the seizure of two loaded revolvers, marijuana and three digital scales. Thomas admitted ownership of the two firearms and possessing the marijuana in the residence.
This case resulted from the efforts of the WAVE (Working Against Violent Elements) Task Force, which focuses its efforts on combating violent crime in East St. Louis, Washington Park, and surrounding communities. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is assigned to Assistant United States Attorney Daniel T. Kapsak for prosecution.
Eagle Butte Man Sentenced for Third Degree BurglaryRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Third Degree Burglary was sentenced on July 24, 2013, by U.S. District Judge Roberto A. Lange.
Jake Morrison, age 31, was sentenced to 18 months of imprisonment, two years of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and $972.61 in restitution.
Morrison was indicted by a federal grand jury on February 13, 2013, and pled guilty to the indictment on April 30, 2013.
The charge stems from an incident occurring on January 6, 2013, when Morrison, with the help of two other co-defendants, broke into the Chatter Box Corner Café in Timber Lake and stole several bottles of alcohol.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Morrison was immediately turned over to the custody of the U.S. Marshals Service.Drug Thieves Sentenced to Federal PrisonRead the Press Release
Defendants Tried to Rob a Government Cooperator at Gunpoint
ROME, Ga. - Ospicio Olea Aguilar has been sentenced for his role in conspiring to steal cocaine and marijuana from a man he thought was a drug dealer, but who in reality was working at the direction of law enforcement officers.
“These seven defendants played a risky game when they tried to rob a drug dealer at gunpoint,” United States Attorney Sally Quillian Yates said. “Thanks to the quick action of law enforcement, the armed robbery ended not in tragedy but in the arrests of all the men involved in this conspiracy.”
According to United States Attorney Yates, the charges and other information presented in court: In October 2011, Aguilar, and co-defendants Tedrick Whiters and Sergio Jovanny Bibiano Vasquez, approached a man in Marietta, Ga., who they believed would be able to sell them cocaine. Unbeknownst to them, this man had previously cooperated with law enforcement, and he contacted officers to let them know what happened. He agreed to work at the direction of law enforcement.
Over the following weeks, the cooperator spoke and met with Aguilar, Vasquez and Whiters to discuss the drug deal. Whiters attempted to have the drug deal take place in Atlanta, but the cooperator stated that his supplier was from Dalton, Ga., and would only go as far south as Cartersville. Whiters, Aguilar and Vasquez convinced the cooperator to go to Atlanta on one occasion to discuss the deal. The real purpose of the meeting was to rob him of the drugs in case he happened to have the drugs with him. Co-defendant Frederico Jerburshio Jones followed the cooperator, and was prepared to rip off the cooperator at gunpoint if he had the drugs with him. Eventually, Whiters, Aguilar and Vasquez asked the cooperator to provide five kilograms of cocaine and 150 pounds of marijuana for a total cost of $217,500. They agreed that the deal would take place on November 2, 2011, at the Cracker Barrel restaurant off I-75 exit 290 in Cartersville.
Around 11:00 a.m. on November 2, 2011, law enforcement set up surveillance in an area overlooking Cracker Barrel. As they set up surveillance, they noted that co-defendants Willie Charles Townsend, Corwin Jackson Finsley and Maurice Jammorow Beavers were setting up counter surveillance. These three men left their first meeting site and moved to different locations, some of them out of the line of sight of law enforcement.
Eventually, Vasquez called the cooperator and said that they were near exit 290. Vasquez showed up in a car driven by Finsley, with Jones in the front passenger seat. Jones got out of the car, confirmed that the cooperator had the drugs, and told him that they should move the deal next door to the Shell gas station, which, unlike Cracker Barrel, did not have surveillance cameras. The cooperator agreed and moved his vehicle to the Shell station.
When he got out of his car, Jones pulled a gun on him and ordered him to get into Jones’s car. The cooperator struggled with Jones and was able to wrestle the gun away. He threw the gun under a car and ran into the Shell station convenience store. Jones ran after him, but the cooperator held the doors to the store shut. The cooperator was wearing a wire while all of this was happening. Law enforcement knew that what was supposed to be a buy-bust operation was turning into a drug rip and attempted kidnapping. Agents moved in and arrested Jones as he attempted to flee, and also stopped the car that Finsley was driving. Law enforcement drew their firearms on Finsley as he attempted to reach under his seat, where officers later found a 9mm Kel-Tech pistol. Officers also stopped the car that Townsend and Beavers were in as they attempted to drive away. Because Whiters and Aguilar were in a different area overlooking the scene, they were able to drive away. But, they were arrested later that day in Atlanta.
Aguilar was the last of seven defendants to be sentenced for this crime. The defendants were charged with one count of conspiracy to attempt to commit a robbery and one count of possessing firearms in relation to the robbery. They were also charged with one count of conspiracy to possess with intent to distribute cocaine and marijuana and one count of possessing firearms in furtherance of drug trafficking. The defendants were sentenced as follows:
•Aguilar, 28, of Atlanta, Georgia, has been sentenced to 15 years in prison to be followed by 5 years of supervised release. Aguilar was convicted of these charges on April 15, 2013, after he pleaded guilty.
•Whiters, 39, of Atlanta, Georgia, was sentenced on July 23, 2013, to 17 years in prison to be followed by 5 years of supervised release. Whiters was convicted of these charges on April 15, 2013, after he pleaded guilty.
•Vasquez, 24, of Atlanta, Georgia, was sentenced on August 30, 2012, to 15 years in prison to be followed by three years of supervised release. Vasquez was convicted of these charges on June 7, 2012, after he pleaded guilty.
•Jones, 41, of Atlanta, Georgia, was sentenced on October 11, 2012, to 15 years in prison to be followed by five years of supervised release. Jones was convicted of these charges on July 26, 2012, after he pleaded guilty.
•Townsend, 35, of Atlanta, Georgia, was sentenced on January 10, 2013, to 15 years in prison to be followed by five years of supervised release. Townsend was convicted of these charges on October 18, 2012, after he pleaded guilty.
•Finsley, 43, of Atlanta, Georgia, was sentenced on October 11, 2012, to 15 years in prison to be followed by five years of supervised release. Finsley was convicted of these charges on July 26, 2012, after he pleaded guilty.
•Beavers, 29, of Atlanta, Georgia, was sentenced on July 23, 2013, to 15 years in prison to be followed by 5 years of supervised release. Beavers was convicted of these charges on April 18, 2013, after he pleaded guilty.
This case was investigated by the FBI Bartow-Cartersville Drug Task Force with assistance from the United States Marshals Service.
Assistant United States Attorneys William G. Traynor and Paul R. Jones prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Dos residentes de Florida fueron imputados por cargos de conspiración para defraudar y amenazar a consumidores de habla hispanaRead the Press Release
Un gran jurado en el Distrito Sur de Florida imputó a dos individuos por cargos de conspiración, fraude y extorsión, alegando que manejaban una serie de empresas fraudulentas con consumidores de habla hispana como objetivo, anunciaron hoy el Departamento de Justicia y el Servicio de Inspección Postal de EE.UU. (USPIS). Fueron imputados Daniel Carrasco, 54, y Federico Martin Gioja, 45, ambos de Miramar, Fla. por crear, poseer y administrar empresas de Florida que utilizaban a televendedores en una sala telefónica en la Argentina para extraerle dinero a consumidores, utilizando mentiras y extorsión.
Carrasco y Gioja fueron acusados penalmente y arrestados el 26 de junio de 2013. Desde entonces, han estado encarcelados. Carrasco y Gioja y una tercera persona, Romino Tasso, también fueron nombrados en una demanda civil entablada por el Departamento de Justicia. En la demanda civil, el Departamento de Justicia solicitó que el tribunal emitiera un interdicto y, consecuentemente, la Jueza Cecilia Altonaga emitió una orden de restricción temporal prohibiendo futuras mentiras a consumidores y congelando los bienes de Carrasco, Gioja, Tasso y compañías bajo su control.
"Utilizaremos todas las herramientas a nuestra disposición, lo que incluye el congelamiento de activos, desagravio judicial y enjuiciamiento penal, contra las empresas que mientan, extorsionen, amenacen y defrauden a consumidores", dijo Stuart F. Delery, Secretario de Justicia Auxiliar Interino de la División Civil del Departamento de Justicia. El proteger a los ciudadanos de los Estados Unidos contra el fraude sigue siendo una de las principales prioridades del Departamento de Justicia".
De acuerdo con la demanda civil y la declaración jurada presentada como respaldo a la demanda penal, el caso fue el resultado de una remisión realizada por una estación de televisión de habla hispana, Univision. Se alega que compañías pertenecientes a Carrasco y Gioja alegaron falsamente ser afiliadas a Univision y vender productos como vitaminas, lociones, seguro médico y productos de enseñanza del idioma inglés. Sin embargo, las compañías solían no enviar los productos comprados por los consumidores y los consumidores recibían otros productos en lugar de los comprados. De acuerdo con la acusación formal, cuando los consumidores se negaban a recibir los envíos de las compañías, los televendedores de la sala telefónica de la Argentina llamaban y amenazaban falsamente a los consumidores con el arresto, la deportación o multas en sus cuentas de gas y electricidad.
El Fiscal Federal para el Distrito Sur de Florida Wifredo A. Ferrer señaló, "Estos demandados tenían como objetivo específico a víctimas de habla hispana, se hicieron pasar por afiliados de Univision para vender sus productos a partir de su sala telefónica en la Argentina cuando, de hecho, no tenían ningún vínculo con Univision y sus compañías no enviaban los productos pedidos por los consumidores. "Nos comprometemos a investigar y enjuiciar a estafadores como estos, tanto nacionales como internacionales, cuyos ardides defraudan a los consumidores".
De acuerdo con las demandas penal y civil, Carrasco y Gioja cambiaban con frecuencia los nombres de las compañías que utilizaban para hacer negocios, para evadir las quejas de los consumidores, las agencias reguladoras y las fuerzas del orden público. Se alega que una serie de dependencias del estado se comunicaron con las empresas acerca de sus prácticas ilícitas. Las personas que trabajaban con Carrasco y Gioja, se referían a estas compañías objeto de quejas como "quemadas" en mensajes de correo electrónico citados en la declaración jurada presentada para respaldar el arresto. En lugar de modificar las prácticas de las compañías "quemadas", se alega que Carrasco y Gioja crearon compañías nuevas dedicadas a las mismas prácticas ilegales.
Se conoció inicialmente el supuesto fraude cuando la red de habla hispana Univision informó al USPIS que creían que una compañía estaba llevando a cabo un ardid fraudulento en el que se hacía pasar como afiliada de la red. Posteriormente, USPIS investigó el caso, presentó una declaración jurada en respaldo a la demanda penal y arrestó a los demandados.
"Los inspectores postales seguirán investigando casos de fraude contra los consumidores y demandarán enérgicamente a quienes utilicen el correo para promover sus ardides delictivos", dijo Rondal Verrochio, Inspector Postal de EE.UU. a Cargo en Miami.
El Secretario de Justicia Auxiliar Interino Delery felicitó al Servicio de Inspección Postal por su labor de investigación y agradeció a la Fiscalía Federal para el Distrito Sur de Florida por sus aportes al caso civil. El caso penal está siendo enjuiciado por el Director Auxiliar Richard Goldberg con la Oficina de Protección al Consumidor [Consumer Protection Branch] del Departamento de Justicia.
District Man Sentenced to Four-Year Prison Term for Robbery and Theft-Defendant Committed Dozens of Other Thefts from Automobiles-Read the Press Release
WASHINGTON – Antoine Dyson, 42, of Washington, D.C., has been sentenced to a four-year prison term on charges stemming from a Capitol Hill robbery and a theft from an automobile in a downtown parking lot, U.S. Attorney Ronald C. Machen Jr. announced today.
Dyson pled guilty in May 2013, in the Superior Court of the District of Columbia, to one count each of robbery and first-degree theft. He was sentenced on July 24, 2013 by the Honorable Robert I. Richter. Upon completion of his prison term, Dyson will be placed on three years of supervised release.
According to the government’s evidence, on July 13, 2012 at about 4:10 p.m., Dyson was observed on surveillance video entering the Grand Hyatt hotel parking garage in the 1000 block of G Street NW, carrying a single black briefcase. He went to the corner of the garage and returned several minutes later carrying a second black briefcase. Shortly thereafter, the victim reported that the rear passenger window of his 2005 Lexus sports utility vehicle had been shattered, and that a black briefcase containing an Apple iPad2 tablet computer, an iPod Touch portable music player, and a Nikon Coolpix digital camera, among other items, was missing. The victim viewed the surveillance video and confirmed that the second black briefcase carried by Dyson was the briefcase that had been stolen from his vehicle.
Months later, on Nov. 27, 2012, at about 8:30 p.m., Dyson entered the Matchbox restaurant in the 500 block of 8th Street SE, and was observed by an eyewitness removing a second victim’s wallet from her purse, which was hanging from a hook at the restaurant’s bar. The eyewitness chased Dyson out of the restaurant and confronted him about the robbery. Dyson then fled in a sports utility vehicle and was stopped several blocks away by officers of the Metropolitan Police Department (MPD). The victim’s wallet was recovered near where Dyson’s vehicle had been stopped and the eyewitness positively identified Dyson as the perpetrator.
Dyson also was suspected in approximately 72 break-ins of automobiles located in parking garages throughout downtown Washington from January 2011 to November 2012. The break-ins were primarily focused at the Grand Hyatt and Gallery Place parking garages. Dyson often shattered windows to gain access to automobiles, before fleeing with electronics or other valuables contained within the vehicles. As a result of the government’s investigation, these cases were successfully closed, and the government agreed not to bring any charges in exchange for Dyson’s plea of guilty to robbery and first-degree theft in May.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the MPD. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Donville Drummond and Tamaya Reid, Investigative Analyst William Hammon, and Assistant U.S. Attorneys Scott Ray and Clare Pozos. Finally, he thanked Assistant U.S. Attorney Michael Spence, of the Felony Major Crimes Section, who prosecuted the matter.
13-260DeSoto, Texas, Man Sentenced to Nearly 25 Years in Federal Prison for Producing Child PornRead the Press Release
DALLAS — Quaylan Anderson, 25, of DeSoto, Texas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 293 months in federal prison, following his guilty plea in April 2013 to one count of production of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in December 2011, Anderson met Jane Doe, who was then 13-years-old. Anderson admits that on multiple occasions between December 2 and December 5, 2011, he engaged in sexual acts with Jane Doe, and on some of those occasions, he used his cell phone to take photos of himself and Jane Doe engaging in that sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the DeSoto Police Department and the FBI. Assistant U.S. Attorney Lisa J. Miller was in charge of the prosecution.
Dallas Man, Who Admitted Aiming A Laser Pointer at an Aircraft,is Sentenced to 30 Months in Federal PrisonRead the Press Release
DALLAS — Kenneth Santodomingo, aka “Juan Goel Pagan” and “Juan Joel Pagan,” 22, was sentenced today by U.S. District Judge Reed C. O’Connor to 30 months in federal prison, following his guilty plea in February 2013 to an indictment charging one count of aiming a laser pointer at an aircraft. Santodomingo was arrested on January 28, 2013, after a criminal complaint was filed for the offense, and he has been in custody since that time. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
“This young man’s conduct was extraordinarily dangerous and could have had disastrous consequences, which was reflected in the Court’s sentence today,” said U.S. Attorney Saldaña. “I commend the Dallas Police Department, the FBI and the Transportation Security Administration’s Federal Air Marshal Service for their work in this investigation.”
According to documents filed in the case, at approximately 4:08 a.m. on January 28, 2013, two Dallas Police Department (DPD) officers were operating a DPD helicopter over a residential area in search of a motor vehicle burglary suspect when the cockpit was illuminated by a laser pointer approximately four times over a 10-minute period. The intensity of the light refracting across the aircraft’s windscreen obscured the pilot’s vision and impaired his ability to view the instruments and the ground, forcing the pilot to turn the aircraft in a different direction to avoid vision damage and maintain aircraft control.
After pinpointing the origin of the laser, the pilots observed, via the onboard camera’s thermal imaging, an individual in the backyard of a residence in the 7000 block of Lake June Road. When patrol officers arrived at the house, Santodomingo answered the door, eventually admitted to having pointed the green laser light at the helicopter out of curiosity as to how far it would go, and handed over the laser pointer to the officers.
Assistant U.S. Attorneys Katherine Miller and J. Mark Penley prosecuted.
Charlestown Resident Sentenced for Tax Scheme at Suffolk DownsRead the Press Release
BOSTON – A Charlestown man was sentenced today for his scheme to help gamblers at Suffolk Downs evade the payment of taxes on over $2 million in winnings.
Gary Boyar, 53, was sentenced by U.S. District Judge Richard G. Stearns to one year and one day in prison, and ordered to pay $43,149 in restitution to the Internal Revenue Service. In February 2013, Boyar pleaded guilty to corruptly endeavoring to impede the IRS and tax evasion.
Boyar was a “10-percenter,” a phrase referring to the 10-percent fee charged by those who cash winning tickets for gamblers so that the gamblers’ identities are not reported to the IRS. This scheme allowed gamblers to avoid paying taxes on their winnings, which were taxable income. When Boyar cashed tickets and submitted forms to the IRS associated with those tickets, he used his deceased father’s social security number to obstruct the IRS. During the tax years 2004 through 2006, Boyar cashed more than $2 million in tickets at Suffolk Downs that belonged to winning gamblers, and submitted approximately 1,713 false IRS forms using his deceased father’s social security number. This conduct obstructed the IRS from determining the identities of the actual winners.United States Attorney Carmen M. Ortiz, Assistant Attorney General Kathryn Keneally of the Department of Justice Tax Division, and Special Agent in Charge William P. Offord of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Trial Attorney Sean R. Delaney of the Tax Division.
Calvert County Man Sentenced to over 8 Years in Prison for Transporting Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced David Dobbs, age 55, of Port Republic, Maryland, today to 104 months in prison, followed by lifetime supervised release, for transporting child pornography. Judge Messitte ordered that 14 months of Dobbs’ sentence be concurrent to his state sentence. Judge Messitte also ordered that upon his release from prison, Dobbs must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.
According to the plea agreement, on two occasions in 2010, Dobbs used a file sharing program to make his files of child pornography available to undercover law enforcement officers, who downloaded a total of 16 videos and five images of children engaged in sexually explicit conduct. On September 13, 2010, Dobbs also engaged in a chat with the undercover officer, telling the officer that he liked “girls around seven years old and up.”
On April 13, 2012, Dobbs was interviewed in connection with another investigation and admitted using a file sharing program and a particular screen name when he chatted with the undercover officer. A search warrant was executed at Dobb’s residence and law enforcement seized a laptop computer and an SD card that appeared to have been pierced with a blunt instrument. Child pornography was recovered from the computer and the SD card, including images of prepubescent children engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section, who prosecuted the case.
CHARGING & SUPPORTING DOCUMENTS: U.S. V. S.A.C. Capital Advisors, L.P., Et Al.Read the Press Release
U.S. v. Richard Lee Information
U.S. v. SAC Capital Civil Forfeiture Complaint
U.S. v. SAC IndictmentBusinessman, William P. Mack, Sentenced for Bribing Former Jefferson Parish President Aaron BroussardRead the Press Release
WILLIAM P. MACK, 64, a resident of Kenner, Louisiana, was sentenced today to 20 months in prison by U.S. District Judge Nannette Jolivette Brown for conspiracy to commit bribery, announced U.S. Attorney Dana J. Boente. In addition to the term of imprisonment, Judge Brown fined MACK $60,000 and placed him on two years of supervised release.
According to court documents, beginning in 2002, MACK, the former President and owner of First Communications Company (“FCC”), a provider of telecommunications equipment and services, began a business relationship with then-Jefferson Parish councilman Aaron F. Broussard (“Broussard”). This relationship entailed MACK paying Broussard approximately $1,500 per month in exchange for Broussard’s official acts to steer telecommunications work to MACK and his company. By 2004, when Broussard was elected Jefferson Parish President, MACK continued to corruptly pay Broussard approximately $1,500 per month in exchange for Broussard’s efforts to steer work, including Parish telecommunications work, to FCC. As noted in the factual basis, during the time Broussard was Parish President, MACK paid him approximately $66,000 in exchange for, among other things, Jefferson Parish telecommunications work, collectively worth approximately $40,000.
In September 2012, Broussard, the former Jefferson Parish President, pled guilty to multiple corruption charges, including conspiracy to commit bribery involving the bribes paid by MACK. Broussard was ultimately sentenced to 46 months imprisonment.
The case was investigated by special agents of the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Matt Chester and Brian Klebba.
Business Owner Sentenced for Failing to Pay Employee Withholding Taxes to IRSRead the Press Release
PITTSBURGH, Pa. - A resident of Monroeville, Pa., has been sentenced in federal court to 18 months in prison and three years supervised release on his conviction of failure to pay taxes associated with his businesses, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Richard D. Edwards, 55, of Monroeville, Pa.
According to information presented to the court, Edwards failed to account for and pay over withholding taxes for various employees in his business Custom Patio Rooms .
Prior to imposing sentence, Judge Diamond stated that Edwards had deliberately continued to fail to pay withholding taxes for a period of more than two years despite having been warned by both an accountant and an attorney that he had to file proper returns and pay the taxes reported on those returns. Judge Diamond also noted that Edwards and/or his businesses had more than 300 contacts of various kinds with the IRS urging him to properly report and pay his taxes during the time period in question.
In addition to the time in prison and the period of supervised release Edwards was also ordered to pay all back taxes, penalties and interest that were due and owing.
U.S. Attorney Hickton commended the Internal Revenue Service Criminal Investigation Special Agents who for the investigation leading to the successful prosecution of Edwards.
Buffalo Woman Arrested, Charged with Bank RobberyRead the Press Release
BUFFALO, N.Y.–The United States Attorney’s Office announced today that Adlyn Marie Echevarria Robles, 20, Buffalo, N.Y., was arrested and charged by criminal complaint with committing two bank robberies. The charges carry a maximum penalty of 20 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Melissa Marangola, who is handling the case, stated that according to the complaint, the defendant robbed the M&T Bank, located at 1580 Hertel Avenue in Buffalo, on July 5, 2013, and the M&T Bank, located at 709 Elmwood Avenue in Buffalo, on July 24, 2013. The complaint further alleges that Robles passed notes to the bank tellers indicating she possessed bombs and that she would detonate if she was not provided money.
The defendant made an initial appearance today before U.S. Magistrate Judge Jeremiah J. McCarthy and was released on bond.
The Criminal Complaint is the result of a joint investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda and the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Buffalo Man Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Pascual Giovanny Navarro-Gonzalez, 29, of Buffalo, NY., pleaded guilty before U.S. District Judge Richard J. Arcara, to conspiracy to possess with intent to distribute, and to distribute heroin and cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, a $5,000,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that Navarro-Gonzalez was one of three men arrested on March 6, 2012 after law enforcement officers executed a search warrant at his residence at 39 Montclair Avenue in Buffalo. Officers seized heroin, cocaine, ammunition, and drug paraphernalia. During the investigation, several purchases of heroin were made from Navarro-Gonzalez.
Co-defendants Erick Joel Reyes Barretto and Juan Montanez previously pleaded guilty to conspiracy to possess with intent to distribute heroin and cocaine. Reyes Barretto was sentenced to 60 months in prison, and Montanez is scheduled for sentencing on October 4, 2013.
The plea is the culmination of an investigation on the part of Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, and the Ohio State Highway Patrol, under the direction of Colonel John Born.
Navarro-Gonzalez is scheduled to be sentenced on November 22, 2013 at 12:00 p.m. before Judge Arcara.Brody Sentenced to 41 Months in Prison in Connection with Real Estate Investment SchemeRead the Press Release
Sentence Includes $1,331,075.36 in Restitution to VictimsSALT LAKE CITY – Patrick Merrill Brody, age 47, of Salt Lake City, who pleaded guilty in May to wire fraud and money laundering in connection with a real estate investment scheme, will serve 41 months in federal prison.
U.S. District Judge Robert J. Shelby, who imposed the sentence Thursday in federal court, also ordered Brody to pay restitution of $1,331,075.36 to victims in the case and serve 36 months of supervised release when his prison sentence concludes.
Brody was charged with conspiracy, mail and wire fraud, and money laundering in a nine-count indictment returned by a federal grand jury in October 2012. The indictment alleged Brody and his wife, Laura Ann Roser, operated Art Intellect, Inc., a Utah corporation doing business as Mason Hill. The business had offices in Salt Lake City and Cape Coral, Florida. Mason Hill solicited and sold investments in real estate properties. It offered potential clients an option for investing in rental residential properties in several states. Mason Hill offered to sell investors rental properties at a low price, repair and rehabilitate them if necessary, find renters for the properties, collect rent, and maintain and manage the properties for the benefit of the investors.
The indictment alleged that once received, investors’ funds were comingled with other investors’ money, used to purchase properties for earlier investors, and used to pay operating expenses of Mason Hill as well as personal expenses for the defendants – among other things. In some instances, investors’ money was used to make Ponzi payments to earlier investors.
As a part of a plea agreement reached with federal prosecutors, Brody admitted that from April 2009 through early 2011 he made important business decisions for the company, hired and instructed employees, and directed the use of company proceeds.
Brody admitted that the company ultimately began operating a scheme that obtained money or property through fraudulent representations or promises. The fraudulent representations were made with the intent to induce clients to make investment payments to Mason Hill. Funds invested through the scheme were converted to personal use by Brody, which deprived the company of the capital necessary to complete real estate transactions as promised. Many of the clients, who invested in the scheme, did not receive any property or any other thing of value in return for their investment payments, and did not receive a refund of their payments.
Roser pleaded guilty in June to a one-count Misdemeanor Information charging her with inducing or attempting to induce the purchase and sale of a security without being registered as a broker-dealer with the U.S. Securities and Exchange Commission and without being associated with a broker-dealer registered with the Commission, but in doing so, the defendant had no knowledge of such registration requirement. Roser is scheduled to be sentenced Aug. 22, 2013, at 2 p.m. in Judge Shelby’s courtroom.The case is being prosecuted by the U.S. Attorney’s Office and investigated by special agents of the FBI and IRS Criminal Investigation.
Boston Man Convicted of Health Care FraudRead the Press Release
BOSTON – A Boston man was convicted yesterday following a jury trial for a scheme to defraud the Medicare program out of approximately $1 million.
Blessing Sydney Iwuala, 54, of Hyde Park, was convicted of conspiracy to commit health care fraud and three counts of health care fraud following an eight-day jury trial.
Iwuala was convicted of conspiring to bill the Medicare program for more than $1 million of durable medical equipment, including power wheelchairs, for Medicare patients who did not order and did not need the equipment. Medicare paid Iwuala approximately $450,000 in connection with the scheme.
Iwuala owned and operated a medical supply store called Above All Homecare and Supply, Inc. (Above All). Iwuala allowed a co-conspirator (Person A), whose Medicare supply privileges had been revoked, to use Above All as a front to submit fraudulent Medicare claims for patients in Texas. After doing virtually no business for the first 15 months of its existence, between February 2009 and May 2009, Above All billed Medicare for more than $1 million of medical equipment for 88 Medicare patients in Texas. Person A obtained these orders by paying another co-conspirator (Person B), for the prescriptions, which were forged. Iwuala allowed Person A to bill Medicare for these claims using Above All’s name, and Iwuala provided Person A with blank Above All paperwork to deliver power wheelchairs and other equipment to Medicare patients, who had not requested the equipment. Shortly after Person A was arrested in connection with a separate health care fraud scheme, Iwuala terminated Above All. Iwuala kept approximately $300,000 of the Medicare proceeds, paying Person A approximately $150,000. Most of the patients who were the subjects of the Above All scheme were “compromised” Medicare beneficiaries whose Medicare information had been used repeatedly in connection with other Medicare fraud schemes. As a result, when some of these patients actually needed medical equipment, they were unable to obtain this equipment due to the Above All fraud scheme, as well as others.
In addition to the conspiracy count, Iwuala was convicted of three health care fraud counts for billing Medicare for unnecessary medical equipment, much of which was never delivered, for three patients in Texas.
U.S. District Court Judge Richard G. Stearns scheduled sentencing for Iwuala on October 18, 2013. The statutory maximum penalty for each of the four charges is 10 years in prison, followed by three years of supervised release, a fine of $250,000 or twice the gross gain or loss resulting from the offense, restitution to the Medicare program, and forfeiture of any proceeds gained by Iwuala as a result of the offense.
United States Attorney Carmen M. Ortiz, 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 today. The case was prosecuted by Assistant U.S. Attorneys David S. Schumacher and Amanda P.M. Strachan of Ortiz’s Health Care Fraud Unit. The trial team was also assisted by Medicare contractor Health Integrity, LLC.
Bossier City Man Pleads Guilty to Counterfeiting $20 Bills in ApartmentRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that Dakota Mallory Robinson, 24, of Bossier City, La., pleaded guilty Wednesday before U.S. District Judge Tom Stagg to making counterfeit Federal Reserve notes.
According to evidence presented at the guilty plea, a duplex manager called the Bossier City Police Department to report that a maintenance worker had observed Robinson making counterfeit money in his apartment with the door open to the public. A search of the apartment Feb. 8, 2013 revealed $2,020 worth of counterfeit $20 bills, a printer, uncut sheets of counterfeit $20 bills, and other related items.Robinson faces up to 20 years in prison, three years of supervised release, and a fine of $250,000 for the charge. A sentencing date of Oct. 24, 2013 was set.
The U.S. Secret Service, Shreveport Office, and the Bossier City Police Department conducted the investigation. Assistant U.S. Attorney Brandon B. Brown is prosecuting the case.
Blackfoot Man Pleads Guilty to Abusive Sexual Contact with A ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that Ta-Sunka-Hinz Thunder Hawk, age 18, of Blackfoot, South Dakota, appeared before U.S. District Judge Roberto A. Lange on July 23, 2013, and pled guilty to an Indictment that charged him with Abusive Sexual Contact With a Child.
The maximum penalty upon conviction is life imprisonment and a $250,000 fine, or both; and a period of supervised release of a least five years up to life. There is also a $100 special assessment to the Federal Crime Victims Fund and restitution may also be ordered.
The conviction stems from an incident in March of 2013 when Thunder Hawk had sexual contact with a child under the age of 12 at a residence near Blackfoot.
The investigation was conducted by the Cheyenne River Tribal Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Thunder Hawk was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for October 14, 2013.Baltimore Car Dealer Owner Pleads Guilty to Structuring Deposits of over $2 Million to Evade Bank Reporting RequirementsRead the Press Release
Businesses that Break Up Cash Transactions to Avoid Paper Trail Face
Prosecution
Baltimore, Maryland – Amefika Gray, age 39, of Baltimore, pleaded guilty today to structuring bank deposits totaling over $2 million over a two year period to avoid bank reporting requirements.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Commissioner Anthony W. Batts of the Baltimore Police Department.
“Federal law requires large currency transactions to be reported in order to deter money laundering, tax evasion and other criminal conduct,” said U.S. Attorney Rod J. Rosenstein. “Businesses that break up their cash deposits to avoid currency reporting requirements face federal criminal prosecution.”
According to his plea, Gray owns Network Auto Group, a car dealership operating at 2631 Gwynns Falls Parkway in Baltimore. Between January 15, 2010 and April 28, 2012, Gray made regular deposits of $10,000 or just under $10,000 into his personal and business bank accounts, including at least 25 instances in which Gray made multiple deposits under $10,000 the same day into the same bank or into different banks. The amount of the structured deposits over this two year period totaled $2,017,205.23. Gray deposited the money in such amounts because he knew that the banks were required to report to the Internal Revenue Service all deposits over $10,000.
Gray and the Government have agreed that if the Court accepts the plea agreement, Gray will be sentenced to 30 months in prison and will be subject to a forfeiture money judgment of $800,000, and will be required to forfeit a Mercedes Benz vehicle and three residential properties located in Baltimore. U.S. District Judge Ellen L. Hollander scheduled his sentencing for October 18, 2013, at 10:00 a.m.
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.
United States Attorney Rod J. Rosenstein praised the IRS – Criminal Investigation and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Evan T. Shea, who is prosecuting the case.
Attorney Sentenced for Stealing over $1.3 Million from Injured ClientsRead the Press Release
ROME, Ga. - Miles Lamar Gammage, a recently disbarred attorney, has been sentenced for defrauding more than 50 of his seriously injured worker’s compensation clients out of settlement funds they were owed.
“This attorney violated the trust placed in him by his clients,” said United States Attorney Sally Quillian Yates. “Instead of helping his clients receive the compensation that they were owed and needed for the treatment of their injuries, he pocketed the money, stealing from people who were already hurting.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office stated: “While today’s sentencing concludes the Government’s case against Mr. Gammage, the enormous damage left behind will be felt by his former clients for quite some time. It is our sincere hope that those many victims of Mr. Gammage’s greed will take some solace in the fact that he has been held accountable for his criminal actions.”
“Criminals such as Gammage, who steal from those looking for help after being seriously injured at work, can expect to be brought to justice,” said Vernon Keenan, Director of the Georgia Bureau of Investigations.
According to United States Attorney Yates, the charges and other information presented in court: Gammage, 59, of Cedartown, Ga., was licensed to practice law in the state of Georgia from June 1979 through January 2012. He owned and operated The Gammage Firm in Cedartown, where he specialized in workers’ compensation cases and represented people who were seriously injured on the job. From approximately January 2008 through January 2012, Gammage converted more than $1.3 million of his clients’ settlement funds to his own use. He used the stolen funds to pay his own expenses and to pay his law firm’s payroll and operating expenses. Gammage also settled claims on behalf of clients without authorization; failed to notify clients that he had received their settlement checks; forged clients’ names on settlement checks and deposited those checks into bank accounts that he controlled; commingled clients’ funds with his own funds; and refused to provide clients with a full and accurate accounting concerning the disposition of their settlement funds.
When clients asked why they had not received their settlement funds, Gammage blamed the delay on others. He also delayed disbursing any portion of the settlement funds to clients as long as possible. When clients insisted that they needed money to pay medical bills and purchase medication, Gammage tried to pacify them by giving them partial payments, which he referred to as “advances” and “interest-free loans.” By engaging in such tactics, Gammage lulled his clients into a false sense of security and delayed their complaints to law enforcement authorities.
On January 8, 2013, Gammage pleaded guilty to a Criminal Information charging him with mail fraud. United States District Judge Robert L. Vining sentenced Gammage to serve five years and ten months in federal prison. He was also ordered to serve three years on supervised release following his prison term. Judge Vining is reviewing the amount of restitution owed to the victims and will announce his decision at a later date.
This case was investigated by the Federal Bureau of Investigation and the Georgia Bureau of Investigation.
Assistant United States Attorney Russell Phillips prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Attorney General Eric Holder Welcomes the Confirmation of Tony West as the Associate Attorney General of the United StatesRead the Press Release
Attorney General Eric Holder today welcomed the confirmation by the U.S. Senate of Tony West as the Department of Justice’s Associate Attorney General.“Tony has served with distinction since he returned to the Justice Department in 2009,” said Attorney General Holder. “As a key member of the department's senior management team, he has led with integrity, acting always in the best interests of the American people and in accordance with the finest traditions of public service. I applaud his confirmation by the U.S. Senate today, and look forward to continuing to work with him as Associate Attorney General – a role in which he has excelled, in an acting capacity, for more than a year.”
President Barack Obama nominated Tony West to be the Associate Attorney General of the United States, the third-ranking official at the Department of Justice, on Sept. 20, 2012. Mr. West has served as the Acting Associate Attorney General since March of 2012. Previously, he was nominated by the President to be the Assistant Attorney General for the Justice Department's Civil Division, a position that he held between April 20, 2009 and March 12, 2012.
Mr. West's primary responsibility as the Associate Attorney General is to advise and assist the Attorney General and the Deputy Attorney General in formulating and implementing departmental policies and programs related to a broad range of issues, including civil litigation, federal and local law enforcement, and public safety.
As Associate Attorney General, Mr. West oversees the department's civil litigating components (Antitrust Division, Civil Division, Civil Rights Division, Environment and Natural Resources Division, and Tax Division), grant-making components (Office of Justice Programs, Office on Violence Against Women, and Office of Community Oriented Policing Services), and related components (Community Relations Service, Executive Office of U.S. Trustees, Office of Information Policy and Foreign Settlement Claims Commission). Mr. West serves as the Co-Chair of the President's Task Force on Puerto Rico, the Vice Chair of the Steering Committee of the President's Financial Fraud Enforcement Task Force, and the federal government's Chief FOIA Officer.
During his current tenure in Justice Department leadership, Mr. West has taken an active role in coordinating the department's response to the Deepwater Water Horizon oil spill in the Gulf of Mexico; overseeing comprehensive immigration reform; combating financial fraud through enforcement actions such as the department’s lawsuit against Standard & Poor’s Ratings Services; improving public safety by enhancing partnerships between federal, state, local, and tribal law enforcement; championing the voices of crime victims, children, and the elderly; promoting the reauthorization of the Violence Against Women Act; and improving the federal government's relationship with Native American communities.
From April 2009 to March 2012, Mr. West served as the Assistant Attorney General for the Civil Division, which is the largest litigating division in the Department of Justice. In addition to focusing on traditional areas of the Civil Division's work, Mr. West helped the department further its most important priority – protecting national security. He also bolstered the division's affirmative civil enforcement efforts in areas such as health care fraud, mortgage fraud, and procurement fraud to recover taxpayer money lost to fraud and abuse, resulting in unprecedented monetary recoveries. Mr. West similarly emphasized the Civil Division's authority to bring civil and criminal actions to enforce the nation's consumer protection laws, and served in various positions on the Financial Fraud Enforcement Task Force.
Mr. West first joined the Department of Justice a year after graduating from law school when he served as a Special Assistant to the Deputy Attorney General from 1993 through 1994. From 1994 to 1999, he was an Assistant U.S. Attorney in the Northern District of California. From 1999 to 2001, Mr. West served as a state Special Assistant Attorney General in California. Prior to returning to the Justice Department, Mr. West was a litigation partner at Morrison & Foerster LLP in San Francisco.
Mr. West graduated with honors from Harvard College, where he served as publisher of the Harvard Political Review, and received his law degree from Stanford Law School, where he was elected President of the Stanford Law Review.
Ashland Man Pleads Guilty for His Role in Labor Trafficking ConspiracyRead the Press Release
An Ashland man pleaded guilty to one count of conspiracy for his role in a holding woman with cognitive disabilities and her child against their will and forcing the woman to perform manual labor, law enforcement officials said today.
Daniel J. Brown, 33, admitted that from between August 2010 through October 2012, he conspired with Jordie L. Callahan, Jessica L. Hunt and Dezerah L. Silsby to establish and continue a pattern of domination and control over their victims, identified only as S.E. and B.E.
The plea agreement includes a provision that Brown will cooperate with investigators, including testifying truthfully at all court proceedings if necessary.
Callahan, 26, Hunt, 31, and Silsby, 21, all of Ashland, were indicted earlier this month on multiple charges. They are accused of using a combination of violence, threats, sexual assaults, humiliation, deprivation and monitoring to establish and continue a pattern of domination and control over S.E. and B.E., according to the indictment.
Their tactics included beating S.E., threats of beatings to S.E. and B.E., taunting and threatening the victims with pit bulls and snakes, causing the victims to sleep in unsafe and unsanitary conditions, restricting B.E. and S.E.’s access to the bathroom, preventing them from eating regular and suitable meals and forcing S.E. to eat dog food and crawl on the floor while wearing a dog collar, according to the indictment.
Callahan pointed a firearm at S.E.’s head and threatened to kill her if she did not perform the labor and services he and other conspirators commanded. Callahan also forced S.E. on multiple occasions to engage in sex acts with him and threatened that he and Hunt would kill S.E. if she told anyone about the forced sexual acts, according to the indictment.
Callahan, Hunt and Silsby face one count each of the following: conspiracy to violate laws; forced labor; theft of government benefits and acquiring a controlled substance by deception. Callahan and Hunt face an additional charge of tampering with a witness.
The case is being prosecuted by Assistant U.S. Attorneys Chelsea Rice and Thomas E. Getz, with assistance from Trial Attorney Victor Boutros of the Justice Department’s Human Trafficking Prosecution Unit, following an investigation by the FBI and Ashland Police Department, with assistance from the Ashland County Prosecutor’s Office.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including each defendant’s prior criminal record (if any), his or her role in the offenses and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they 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.
Aryan Brotherhood of Texas Gang Member Pleads Guilty to Federal Racketeering ChargesRead the Press Release
A member of the Aryan Brotherhood of Texas (ABT) gang pleaded guilty today to racketeering charges related to his membership in the ABT’s criminal enterprise, announced Acting Assistant Attorney Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Billy Frank Weatherred, aka “Billy The Kid,” 28, of Dallas, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Weatherred and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Weatherred and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Weatherred has admitted to being a member of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and the promotion of white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect while his conduct is observed by the members of the ABT.
Judge Lake has set sentencing for Oct. 24, 2013, at which time Weatherred faces a maximum penalty of life in prison.Weatherred is one of 36 defendants charged with, among other things, conducting racketeering activity through the ABT criminal enterprise. He is the ninth defendant charged in the indictment to plead guilty.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement -Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Tarrant County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Southern District of Texas.
Aryan Brotherhood of Texas Gang Member Pleads Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON - A member of the Aryan Brotherhood of Texas gang (ABT) pleaded guilty today to racketeering charges related to his membership in the ABT’s criminal enterprise, announced United States Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Billy Frank Weatherred, aka “Billy The Kid,” 28, of Dallas, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Weatherred and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Weatherred and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Weatherred has admitted to being a member of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and the promotion of white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect while his conduct is observed by the members of the ABT.
Judge Lake has set sentencing for Oct. 24, 2013, at 2:00 p.m., at which time Weatherred faces a maximum penalty of life in prison.
Weatherred is one of 36 defendants charged with, among other things, conducting racketeering activity through the ABT criminal enterprise. He is the ninth defendant charged in the indictment to plead guilty.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; sheriff’s offices in Harris, Tarrant, Atascosa, Orange and Waller Counties; police departments in Alvin, Carrollton and Mesquite Texas; as well as the Montgomery and Atascosa County District Attorney’s Offices.
The case is being prosecuted by the U.S. Attorney’s Office of the Southern District of Texas and the Criminal Division’s Organized Crime and Gang Section.
Army National Guard Captain Pleads Guilty to Playing a Lead Role in Bribery and Fraud Scheme Resulting in a Loss of $210,000<br /> to the U.S. Army National Guard BureauRead the Press Release
A captain in the Army National Guard pleaded guilty today to playing a lead role in a bribery and fraud scheme resulting in a loss of at least $210,000 to the U.S. Army National Guard Bureau, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Capt. Fabian Barrera, 46, of Schertz, Texas, was indicted on April 17, 2013, in the U.S. District Court for the Western District of Texas on charges of conspiracy, bribery, wire fraud and aggravated identity theft. Barrera pleaded guilty to one count of bribery, one count of conspiracy to commit bribery and wire fraud, and one count of aggravated identity theft.
The case against Barrera arises from an investigation into allegations that former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to illegally obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 12 individuals, all of whom have pleaded guilty, including Barrera.
According to court documents, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). G-RAP was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the Army National Guard. Through this program, a participating soldier could receive up to $3,000 in bonus payments for a referral. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
Court documents state that, between approximately December 2005 and February 2012, Barrera participated as a recruiting assistant in the G-RAP. Barrera admitted that he paid Army National Guard recruiters in the form of cash and check payments for the names and Social Security numbers of potential soldiers. Barrera then used the information to claim that he was responsible for referring these potential soldiers to join the military, when in fact he did not recruit any of them. As a result, Barrera received a total of at least $181,000 in fraudulent recruiting referral bonuses. Also, because of Barrera’s fraudulent referrals, the National Guard Bureau paid Docupak a total of at least $31,000 in administrative fees.
The charge of bribery carries a maximum penalty of 15 years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss. The charge of conspiracy carries a maximum penalty of five years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss. The charge of aggravated identity theft carries a mandatory penalty of two years in prison, which must be imposed consecutively to any other term of imprisonment, and a maximum fine of $250,000 or twice the pecuniary gain or loss. Sentencing has not yet been scheduled.
The case is being investigated by the San Antonio Fraud Resident Agency of the Army Criminal Investigation Command’s Major Procurement Fraud Unit and the San Antonio Field Office of the Internal Revenue Service Criminal Investigation. The case is being prosecuted by Trial Attorneys Edward J. Loya Jr., Brian A. Lichter, Sean F. Mulryne and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section.Alien, Jose Transito Lopez, Sentenced for Illegal ReentryRead the Press Release
JOSE TRANSITO LOPEZ, age 34, a citizen of Honduras, was sentenced today in federal court by U.S. District Judge Jane Triche Milazzo to 82 months imprisonment, announced U.S. Attorney Dana Boente. In addition to the term of imprisonment, Judge Milazzo ordered that LOPEZ be placed on three years of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of supervised release.
According to court documents, on March 7, 2013, LOPEZ pled guilty to a one-count indictment admitting he was an alien who was previously removed and was knowingly and unlawfully found in the United States, in Jefferson Parish, Louisiana on November 14, 2012, without the Attorney General or Secretary of the Department of Homeland Security, having expressly consented to his re-application for admission into the United States. LOPEZ’s sentence was subject to enhancement based on a previous aggravated felony conviction.
This case was investigated by United States Immigration and Customs Enforcement - Enforcement and Removal Operations and the Jefferson Parish Sheriff’s Office. The case was prosecuted by Special Assistant United States Attorney Robert Weir.
Albuquerque Man Pleads Guilty to Robbing BBVA Compass Bank in January 2012Read the Press Release
ALBUQUERQUE – Abran Felipe Armijo, 45, of Albuquerque, N.M., pleaded guilty this morning to a bank robbery charge under a plea agreement with the U.S. Attorney’s Office. Under the terms of his plea agreement, Armijo will be sentenced to a federal prison term within the range of ten to fifteen years.
Armijo was arrested on Jan. 4, 2012, based on a criminal complaint charging him with bank robbery and subsequently was indicted on the same charge on Jan. 26, 2012. According to the indictment, Armijo robbed the BBVA Compass Bank, located at 13140 Central Avenue SE in Albuquerque, on Jan. 4, 2012.
During today’s proceedings, Armijo entered a guilty plea to the indictment. Armijo admitted that on Jan. 4, 2012, he walked into the BBVA Compass Bank, approached the bank teller and said, “This is a robbery,” and threatened to shoot the teller if he had to show the teller his gun. Armijo admitted obtaining cash from the bank teller and fleeing on foot. He further admitted that later that day, officers of the Albuquerque Police Department found him hiding in a closet in an apartment with a coat covering his head. A bag containing the money he stole from the bank was found in the sleeve of the coat.
Armijo has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney Louis E. Valencia.
Alamo, N.M., Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Prescott Apachito, 24, an enrolled member of the Navajo Nation who resides in Alamo, N.M., pleaded guilty this morning to a federal assault charge under a plea agreement with the U.S. Attorney’s Office.
Apachito was arrested on Feb. 11, 2013, based on a criminal complaint charging him with assault with a dangerous weapon with intent to do bodily harm. Apachito subsequently was indicted and charged with two counts of assault with a dangerous weapon. According to the indictment, Apachito committed the offense on Nov. 29, 2012, in Socorro County, N.M., on the Navajo Indian Reservation.
During today’s proceedings, Apachito entered a guilty plea to Count 2, charging him with assault with a dangerous weapon. Apachito admitted that in the early morning hours of Nov. 29, 2012, during an argument with several others, he pulled a utility knife out of his pocket and cut a female victim by slicing her neck. He further admitted stabbing a male victim in the stomach when the victim attempted to restrain him. In his plea agreement, Apachito admitted committing this criminal conduct on the Navajo Indian Reservation.
Apachito has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Apachito faces a maximum penalty of ten years in prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Albuquerque office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney David Adams.
A Northern Kentucky IRS Employee and A Florida Man Accused of Stealing Identities, Committing Mail Fraud and Filing A False Tax ClaimRead the Press Release
COVINGTON, KY - A financial technician, employed in a Boone County, Kentucky office of the Internal Revenue Service (IRS), has been charged with multiple crimes relating to her unauthorized access of an IRS computer, to obtain personal information about tax payers.
On July 18, 2013, a federal grand jury returned a sealed indictment against Joy Fox, 32, of Independence, KY. The indictment, which was unsealed today, charges Fox with eight counts of intentionally exceeding her authorized access to an IRS computer, for the purpose of improperly obtaining personal identifying information of tax payers. She is also charged with three counts of mail fraud and three counts of aggravated identity theft in relation to the mail fraud.
According to the indictment, another individual, Patrick Sharpe, 23, of Tallahassee, FL., was charged as a co-defendant in the case. Sharpe and Fox allegedly used the personal identifying information of tax payers to obtain online prepaid debit cards, in tax payers’ names, and then attempted to fund the cards using the tax payers’ social security benefits. Once the cards were approved, the defendants caused the cards to be mailed to addresses in Kentucky. Fox and Sharpe are also charged with conspiracy to file a false claim for a tax refund.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, James D. Robnett, Special Agent in Charge, IRS Criminal Investigations Division, Tampa, FL., and Special Agent in Charge Dwaine Brinson, Treasury Inspector General Tax Administration, Chicago Field Division, jointly announced the indictment.
The investigation preceding the indictment was conducted by agents of the IRS, Criminal Investigation Division, Tallahassee, FL., the Leon County Sheriff’s Office, Tallahassee, FL., and agents of the U.S. Treasury Inspector General Tax Administration, Covington, KY. The indictment was presented to the grand jury by Assistant U.S. Attorney Laura Voorhees.
Fox appeared in court today, while Sharpe is scheduled to appear on August 14, 2013. The Court has scheduled trial for September 23, 2013. The mail fraud charges carry a maximum of 20 years imprisonment; the exceeding authorized access charges carry a maximum of 5 years imprisonment; the aggravated identity theft charges carry two years imprisonment, which must run consecutively to any other sentence imposed; and the filing a false claim for refund charge carries a maximum of 10 years imprisonment. The defendants could also be fined a maximum of $250,000. However, any sentence imposed would come after the court considers the U.S. Sentencing Guidelines and the federal statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial, at which the government must prove their guilt beyond a reasonable doubt.
14 Indicted in Baltimore Heroin Distribution ConspiracyRead the Press Release
Three Defendants Still at Large
Baltimore, Maryland - A federal grand jury has indicted 14 individuals in a Baltimore heroin distribution conspiracy. The indictment was unsealed today upon the arrests of nine defendants and the execution of three search warrants. Two defendants are in custody on state charges and three remain at large. Over 100 agents and officers assisted in today’s arrests and search warrants. The indictment was returned on Tuesday July 22, 2013.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
“I am confident that ATF’s successful execution of federal arrest and search warrants today in Baltimore will make an impact on crime and violence in our community,” said ATF Special Agent in Charge Steven Gerido. “ATF continues to proudly work with its federal, state, and local law enforcement partners to bring criminals to justice.”
“Our ongoing fight against violent crime is more successful with our allied state and federal partners,” said Commissioner Anthony Batts. “We continue to do all we can to reduce crime and violence and I thank all those involved in helping make Baltimore safer.”
The following defendants are charged in the indictment with conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin:
Darryl Robinson, Sr., age 49, of Baltimore;
Mario Williams, age 37, of Baltimore;
Darrell Gilliam, age 42, of Towson, Maryland;
Isiah Robinson, age 27, of Baltimore;
Antonio Berry, age 42, of Baltimore;
Raymond Jefferson, age 43, of Baltimore;
Joyce Dunn, age 51, of Baltimore;
Tyree Howard, age 47, of Baltimore;
Hilton Gibbs, age 42, of Baltimore;
Douglas Duncan, age 47, of Baltimore;
Darryl Debro, age 47, of Baltimore;
Kevin Fisher, age 48, of Baltimore;
Eric Johnson, age 42, of Baltimore; and
Reginald Randolph, age 47, of Baltimore.
Raymond Jefferson, Darryl Debro and Kevin Fisher are still being sought. Antonio Berry and Joyce Dunn are in custody on state charges.
The defendants face a minimum mandatory sentenced of 10 years in prison and a maximum of life in prison. The defendants arrested today had initial appearances and were detained pending detention hearings scheduled for July 26 and July 29, 2013.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs and Scott Lemmon, who are prosecuting the case.
11 indicted for conspiring to distribute controlled substance in AlaskaRead the Press Release
Indictments charge a source of supply for “Up North ‘D’ Boys” rap group,
as well residents of Fairbanks, Anchorage, and the States of Washington,
California and Florida with drug and money laundering offensesAnchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today, July 25, 2013, that the grand jury has returned two additional drug conspiracy indictments stemming from the same investigation that resulted in charges against numerous members of an Anchorage based rap group back in August of 2012. That indictment alleged a conspiracy to distribute over 50 kilograms of cocaine in Anchorage and Fairbanks. All but the alleged ringleader, Terrance S. Fleming, a/k/a “Baydilla”, have since pled guilty. Fleming currently has a trial scheduled to begin next month.
One of the new indictments, Case Number 3:13-cr-00079-RRB charges a conspiracy to distribute over five kilograms of cocaine, over one kilogram of heroin, ten pounds of methamphetamine, and a quantity of oxycodone, as well as a conspiracy to launder the proceeds of drug trafficking. It charges the following individuals:1. Steven N. Taylor, a/k/a “Louis V.”, a/k/a “Nicky”, 42, of Seattle, WA;
2. James Brown, Sr., A/k/a “Unc”, 65, of Washington;
3. Leonard D. Charles, 39, of Washington;
4. Shawn Cortez Cloyd, a/k/a “Cc”, a/k/a “Rider”, 42, of Anchorage;
5. Timothy W. Northcutt, a/k/a “O.G.” a/k/a “Butch”, 62, of Anchorage;
6. Etienne Q. Devoe, a/k/a “Tin”, a/k/a “Tien”, 40, of Fairbanks;
7. Joshua J. Haynes, a/k/a “Lil’ J”, 34, of Florida (formerly of Fairbanks)
8. Gabrielle P. Haynes, 29, of Fairbanks; and
9. Joseph E. Irving, 54, of Washington.The indictment alleges that Taylor, who was assisted by Brown and Charles, shipped drugs to Alaska from Washington State. Among the drugs alleged to have been shipped by Taylor were approximately ten kilograms of cocaine in November 2011. The Fleming indictment alleges that Fleming and his associate, Donnell Johnson, were the intended recipients of the package.
Those kilograms, along with another five kilograms of cocaine allegedly sent by Taylor to St. Louis, Missouri, were intercepted by the United States Postal Inspection Service, Seattle Division, which joined forces with the Drug Enforcement Administration, the Federal Bureau of Investigation’s Safe Streets Task Force, the Anchorage Police Department’s Special Assignment and Vice Units, and the Internal Revenue Service’s Criminal Investigative Division during the investigation.
In addition, the indictment alleges that Cloyd, Northcutt, Devoe, J. Haynes, and G. Haynes would receive drugs for distribution in both Anchorage and Fairbanks. The indictment alleges that Taylor shipped over 20 parcels of drugs to Alaska, beginning in at least 2009. The indictment provides insight into the drug trafficking business in Alaska, as it alleges that conspirators discussed how heroin and methamphetamine were the most profitable drugs to sell in Alaska, as well as the status of various drug debts owed to Taylor and Brown. The indictment states that Brown told Taylor that Cloyd needed to be “taken care of” and “blasted” for his inability to pay a $29,000 drug debt owed to Brown and Taylor. Finally, the indictment further alleges that drug proceeds were then laundered through bank accounts and financial wire services with the assistance of Taylor, Charles, Northcutt, Devoe, and Irving.Taylor was arrested in Seattle on July 10 and was arraigned on the indictment yesterday in Anchorage. Brown, Charles, and Irving were also arrested in Washington between July 23 and 24. Northcutt was arrested in Anchorage on July 24, and was arraigned on the indictment today. Police are currently seeking the whereabouts of Devoe, Joshua Haynes, and Gabrielle Haynes. Any information on their location can be reported to the DEA at (907) 271-5033.
Cloyd was arrested in Anchorage on July 18 on a separate indictment (Case Number 3:13-cr-00077-TMB) stemming from the same investigation, charging him, along with Aaron Frazier, age 40, of San Diego, CA, and Alfred Frazier, age 42, also of San Diego, with conspiring to distribute heroin and cocaine in Alaska. Both Aaron and Alfred Frazier are also in custody on that indictment. Both Fraziers are prior Alaska residents.U.S. Attorney Loeffler stated, “These indictments send a clear message: there is no place for drug traffickers seeking to do business in Alaska. We have a well-coordinated multiagency team of law enforcement personnel dedicated to pursuing drug traffickers who deal, supply, and impact Alaskans and we will pursue them wherever they are located.”
Inspector in Charge of the Seattle Division of the U.S. Postal Inspection Service Bradley Kleinknecht added that “We are committed to identifying United States mail containing drugs, and our inspectors identified over 20 suspicious packages that were linked to this drug trafficking group. Inspectors are working every day to ensure that drug traffickers know that the United States mail is no safe haven for them.”
The investigative agencies mentioned above were supported by the Postal Inspection Service and DEA office in St. Louis, Missouri, the San Diego Police Department, the FBI’s Seattle District Office, and the Bureau of Alcohol, Firearms, Tobacco and Explosives. The maximum penalties for the drug conspiracy charge include a minimum of 10 years in prison and maximum of life in prison, a $10 million fine, and at least five years of supervised release. The money laundering conspiracy charge carries a maximum penalty of 20 years in prison, as well as a $500,000 fine. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Wednesday 24 July 2013
Woman Sentenced for Interstate Transportation to Promote ProstitutionRead the Press Release
United States Attorney Deborah R. Gilg announced that Jessica Alamina, age 27 of St. Robert, Missouri, was sentenced to 21 months imprisonment by United States District Judge Joseph F. Bataillon for transporting an individual with intent to promote prostitution. Following her release from incarceration, she will serve 3 years of supervised release. She will also forfeit to the United States $580 in United States currency, numerous cell phones, a camera, and computer equipment.
In late May of 2012, Ms. Alamina transported a young woman from Illinois to Missouri. After they arrived in Missouri, Ms. Alamina took photographs of the young woman. Ms. Alamina included the photographs in online advertisements she placed for locations in Missouri. The female had “dates” with customers who responded to the advertisements, during which the female engaged in prostitution.
Then in early June of 2012, Ms. Alamina transported the young woman from Missouri to Omaha, Nebraska. One purpose of the trip was for the young woman to engage in prostitution in the Omaha area. Ms. Alamina posted advertisements for the young woman in the “Escorts” section of Backpage.com for Omaha, Nebraska. The young woman had “dates” with customers who responded to the advertisements, during which she engaged in prostitution. The female provided money from the “dates” to Ms. Alamina.
This case was investigated by the Omaha Police Department and the Federal Bureau of Investigation, under the auspices of the Child Exploitation Task Force, which also includes the Council Bluffs Police Department, the Douglas County Sheriff’s Office, the La Vista Police Department, the Mills County Sheriff’s Office and the Nebraska State Patrol.Williamsville Man Pleads Guilty to Selling Synthetic MarijuanaRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Fawzi Al-Arashi, 34, of Williamsville, N.Y., pleaded guilty to conspiracy to possess with intent to distribute a controlled substance. The charges carry a maximum penalty of 20 years in prison, a $1,000,000 fine, or both.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that the investigation began in early 2012 when the Los Angeles Field Office of the Drug Enforcement Administration (DEA) notified the DEA's Buffalo Field Office of a suspected synthetic marijuana shipment destined for Buffalo. The package was delivered to the defendant at 3407 Delaware Avenue in the Town of Tonawanda, home of "Town Tobacco."
Subsequent investigation revealed that Al-Arashi sold synthetic marijuana, also known as "Spice," under such names as "Strawberry Flavored Potpourri," "Tiger Shack," "Atomic," "G-20," and "California Dreams" out of "Town Tobacco" on Delaware Avenue in Tonawanda, and most recently at "Welcome Welcome" on Main St. in North Tonawanda.
Throughout the investigation, police received numerous complaints regarding the stores. One woman called and stated that her son was in the Erie County Medical Center Psychiatric Ward after using synthetic marijuana that he bought at "Town Tobacco."
On July 25, 2012, authorities executed a search warrant at a warehouse leased to the defendant where he stored the synthetic marijuana, and found some 75 pounds of the products, which were typically sold in small sealed packets.
As part of the plea agreement, Al-Arashi has agreed to forfeit more than $290,000 seized from various of his bank accounts as well as a 2012 Toyota Tundra.“The public needs to be warned anytime a product such as this appears in our community," said U.S. Attorney Hochul. "In the case of synthetic marijuana, not only are the chemicals dangerous, they are illegal. Parents should also be aware that the packages containing these substances may be designed in such a manner as to appeal to children.”
The plea is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Major Wayne C. Olson, the Tonawanda Police Department, under the direction of Chief Anthony Palombo, the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast, the Amherst Police Department, under the direction of Chief John Askey, and the Cheektowaga Police Department, under the direction of Chief David Zack.White Swan Man Sentenced to 84 Months Imprisonment for Assaulting Woman with ShoeRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Chet Arlie Moses, age 28, of White Swan, Washington, was sentenced on July 23, 2013 after pleading guilty in March, 2013 to committing an Assault with a Dangerous Weapon. United States District Court Judge Thomas O. Rice sentenced Moses to an 84-month term of imprisonment, to be followed by a 3-year term of court supervision upon release from Federal prison. Judge Rice also ordered Moses to pay nearly $4,000 in restitution to a Toppenish, Washington hospital and a health services organization.
According to information disclosed at the change of plea and sentencing hearings: On November 9, 2012, Moses, a member of the Spokane Tribe of Indians, and the female-victim had a verbal argument. The argument escalated and Moses began beating the female-victim with his fists and a shoe. Moses told the female-victim that he was going to kill her family. The female-victim was able to extricate herself from the scene and immediately contacted the Yakama Tribal Police Department. Tribal Police officers responded and observed that the female-victim was covered in blood. She was transported to the Toppenish Community Hospital where she was provided medical assistance. Thereafter, Detectives with the Yakama Tribal Police contacted the Federal Bureau of Investigation. Together, the law enforcement officers obtained a search warrant for Moses' residence located in White Swan, Washington. At the residence, the law enforcement officers observed a pool of dried blood on a blanket and also discovered a shoe with blood on the sole. Law enforcement officers later interviewed Moses and he confessed that he had assaulted the female-victim.
Michael C. Ormsby said, "Individuals like Chet Moses who commit serious assaults will be prosecuted aggressively and will face lengthy prison sentences. The United States Attorney's Office, the Federal Bureau of Investigation, and the Yakama Tribal Police Department, have a no tolerance for individuals who engage in such criminal conduct."
This investigation was conducted by the Federal Bureau of Investigation and the Yakama Nation Tribal Police Department. The case was prosecuted by Tom Hanlon, an Assistant United States Attorney in the Eastern District of Washington.
12-CR-2088-TOR
Volusia County Armed Career Criminal Sentenced to 15 Years in Federal PrisonRead the Press Release
Orlando, Florida - U.S. District Judge Charlene Edwards Honeywell yesterday sentenced Christopher Holladay (37, Deland) to 15 years in federal prison for possession of a firearm by a previously convicted felon and possession with intent to distribute a controlled substance. Holladay pleaded guilty on April 30, 2013.
According to his plea agreement, Holladay, a previously convicted felon, sold a stolen Remington rifle to an undercover officer and a confidential informant for $350 on August 2, 2012. The rifle had been stolen the day before in a residential burglary. Later that month, a deputy with the Volusia County Sheriff's Office stopped a vehicle being driven by Holladay. A drug detection canine alerted to the presence of drugs in the vehicle. In a subsequent search of the vehicle, investigators found marijuana and methamphetamine.
Holladay has ten prior state felony convictions, including drug possession, conspiracy to traffic in methamphetamine, grand theft, robbery, burglary, possession of a firearm by a convicted felon, resisting an officer with violence, accessory after the fact, and failure of a career offender to properly register. As a previously convicted felon, Holladay is prohibited from possessing firearms or ammunition under federal law. As a result of his prior criminal record, Holladay qualified for enhanced sentencing as an Armed Career Criminal under federal law.
This case was investigated by the Volusia County Sheriff's Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. Acting United States Attorney A. Lee Bentley, III, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
United States Returns Stolen Antique Books to the National Library of SwedenRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the return to the National Library of Sweden of two antique books that were stolen from the Library in the 1990s. The books, which were once part of the collections of Swedish royalty, contain early depictions of interior areas of the United States, including the Mississippi River, by explorers.
Manhattan U.S. Attorney Preet Bharara said: “These two books, which offered the world some of the first glimpses of the extraordinary American landscape and people, were wrongfully taken from the National Library of Sweden, only to end up in the land depicted in their pages more than 300 years ago. With their odyssey now complete, we are proud to be part of returning these priceless artifacts to their rightful owners, and we hope this recovery will prompt others to return antique books in their possession that were stolen from the Library.”
FBI Assistant Director-in-Charge George Venizelos said: “Treasured pieces of a country’s heritage have value far beyond their price on the open market. Some things are not for sale – or shouldn’t be. Anders Burius stole dozens of rare books from the National Library of Sweden, sold them, confessed to the thefts, and committed suicide. He cannot be prosecuted. But the FBI has a role in serving the interests of justice beyond arresting criminals. We are happy to have assisted in returning a part of Sweden’s cultural wealth.”
According to the Stipulation filed in Manhattan federal court and other documents in the public record:
The two books being returned are part of a group of at least 56 rare or one-of-a-kind books that were stolen from the National Library of Sweden’s collection by Anders Burius (“Burius”), a former employee of the Library, between 1995 and 2004. After stealing the books, Burius consigned or sold the books to Ketterer Kunst (“Ketterer”), an auction house in Germany. In 2004, Burius confessed to the book thefts and admitted to Swedish law enforcement officials that he had sold and/or consigned the books to Ketterer under the alias “Carl/Karl Fields.” Shortly after confessing to the thefts, Burius committed suicide. Swedish authorities subsequently received information that 13 of the stolen books had been sold by Ketterer to individuals and/or entities in the United States.
On November 16, 1998, Stephan Loewentheil, the owner of 19th Century Shop Rare Books in Baltimore, Maryland, purchased, without knowledge of the theft, two of the books that Burius had stolen from the National Library of Sweden. Those two books were a Louis Hennepin book entitled “Description de la Louisiane, nouvellement decouverte au sud-ouest de la Nouvelle-France, par ordre du roi; avec la carte du pays, les moeurs et la maniere de vivre des sauvages,” printed in Paris in 1683 by Sebastien Hure (the “Louis Hennepin book”), and a Henry Lewis book entitled “Das illustrirte Mississippithal, dargestellt in 80 nach der Natur aufgenommenen Ansichten vom Wasserfalle zu S:t Anthony an bis zum Golf von Mexico…,” printed in Dusseldorf between 1854-58 by Arntz & Comp (the “Henry Lewis book”).
The Louis Hennepin book, which documents the author’s exploration of the upper Mississippi River in 1680, is known for its map, which has the first-ever printed record of Louisiana, and for the first descriptions of Niagara Falls and the Falls of Saint Anthony. The book once belonged to King Gustav IV and was incorporated into the Library in 1796. The Henry Lewis book contains hand-colored lithographs and texts from the author’s exploration of the Mississippi River between the years 1846-1849. The book belongs to the collection of King Charles XV that was incorporated into the Library in 1873.
Loewentheil, after being contacted by the FBI about the theft of the Louis Hennepin book and the Henry Lewis book from the National Library of Sweden, voluntarily re-obtained both books and agreed to return them to the Library. On July 12, 2013, Loewentheil and the United States Attorney’s Office for the Southern District of New York entered into a stipulation, pursuant to which Loewentheil consented to tender the Louis Hennepin book and the Henry Lewis book to the FBI, to allow for the return of these books to the National Library of Sweden. The stipulation was so ordered by the United States District Court on July 17, 2013. The Louis Hennepin book and the Henry Lewis book were returned to representatives of the National Library of Sweden earlier today at a repatriation ceremony held at the United States Attorney’s Office in New York.
Mr. Bharara praised the investigative work of the FBI in this matter, and its ongoing efforts to find and repatriate stolen property.
Gunilla Herdenberg, the CEO of the National Library of Sweden, said: “On behalf of the Kingdom of Sweden as well as the international library community, I am very grateful to the U.S. Government and to Stephan Loewentheil for all their efforts. I am very happy to bring these books back to Sweden and to make them available for the public and for research again.”
This matter is being handled by the Office’s Asset Forfeiture Unit. Assistant U.S. Attorneys Christine Magdo and Sarah E. Paul are in charge of the case.
National Library of Sweden Stipulation and Order
United States Reaches Agreement with Arcadia, California, School District to Resolve Sex Discrimination AllegationsRead the Press Release
The United States entered into a settlement agreement with the Arcadia Unified School District in Arcadia, Calif., to resolve an investigation into allegations of discrimination against a transgender student based on the student’s sex. Under the agreement, approved by the district’s school board unanimously last night, the school district will take a number of steps to ensure that the student, whose gender identity is male and who has consistently and uniformly presented as a boy at school and in all other aspects of his life for several years, will be treated like other male students while attending school in the district.
The agreement, joined by the Department of Education’s Office for Civil Rights, which participated in the investigation, resolves a complaint filed in October 2011. The complaint alleged that the district had prohibited the student from accessing facilities consistent with his male gender identity, including restrooms and locker rooms at school, as well as sex-specific overnight accommodations at a school-sponsored trip, because he is transgender. The United States investigated this complaint under Title IX of the Education Amendments of 1972 and Title IV of the Civil Rights Act of 1964. Both Title IX and Title IV prohibit discrimination against students based on sex.
Under the settlement agreement, the district will:
• work with a consultant to support and assist the district in creating a safe, nondiscriminatory learning environment for students who are transgender or do not conform to gender stereotypes;
• amend its policies and procedures to reflect that gender-based discrimination, including discrimination based on a student’s gender identity, transgender status, and nonconformity with gender stereotypes, is a form of discrimination based on sex; and
• train administrators and faculty on preventing gender-based discrimination and creating a nondiscriminatory school environment for transgender students.
Additionally, the district will take a number of steps to treat the student like all other male students in the education programs and activities offered by the district. The district-wide provisions of the agreement will be in place until the end of the 2015-2016 school year. The student-specific provisions of the agreement will be in place as long as the student is enrolled in the district.
“All students, including transgender students, have the right to attend school free from discrimination based on their sex,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “We commend the district for taking affirmative steps to ensure that this student and his peers can continue to learn and thrive in a safe and nondiscriminatory environment.”
“Our commitment to civil rights enforcement runs deep and nowhere is that commitment more meaningful than in our schools,” said André Birotte, Jr., United States Attorney for the Central District of California. “This agreement helps ensure continued advancement towards equal rights under the law for all students.”
In recent years, the Justice Department and the Department of Education resolved a number of cases involving gender-based harassment in public schools. In 2012, the departments entered into a consent decree addressing harassment against students who do not conform to gender stereotypes in the Anoka-Hennepin School District, Minn. In 2011, the departments entered into an agreement with the Tehachapi Unified School District, Calif., to resolve a similar complaint of harassment against a gay student who did not conform to gender stereotypes.
Title IV of the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972 each prohibit harassment based on sex. The enforcement of Title IV and Title IX are top priorities of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt .
Two Sentenced for Distribution of A Controlled Substance and Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a man and a woman from Eagle Butte, South Dakota, were sentenced on July 22, 2013, by U.S. District Judge Roberto A. Lange.
Lena Flying By, age 46, charged with Possession with Intent to Distribute a Controlled Substance, was sentenced to 1 week of imprisonment, a $1,000 fine, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Earl Grindstone, age 28, charged with Distribution of a Controlled Substance, was sentenced to 1 month of imprisonment, a $1,000 fine, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Flying By and Grindstone were indicted by a federal grand jury on February 13, 2013. The charges stem from an incident occurring between September 1, 2012, and September 2, 2012, when Cheyenne River law enforcement conducted a vehicle stop and learned from the driver that he had purchased marijuana from a residence in Eagle Butte. After obtaining a search warrant, law enforcement searched the residence and found marijuana along with other drug paraphernalia. Flying By admitted to aiding and abetting the selling of marijuana in her home and Grindstone admitted to selling marijuana.
A third defendant, Terry Flying By, also of Eagle Butte, convicted of Possession with Intent to Distribute a Controlled Substance, will be sentenced on August 19, 2013.
The investigation was conducted by Cheyenne River Sioux Tribe Law Enforcement and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Flying By is to self-report by August 5, 2013, to serve her one-week sentence and Grindstone was to self-report on July 23, 2013, to start serving his one-month sentence.Two Plead Guilty to Making False Statements in HUD Mortgage Fraud CaseRead the Press Release
Both Defendants to Pay Restitution of Nearly $43,000
POCATELLO – Darin John Henecke, 37, of Pocatello, Idaho, and Karen DeWall Shaw, 59, of Chubbuck, Idaho, pleaded guilty today in United States District Court to making false statements to the Department of Housing and Urban Development (HUD), a misdemeanor, U.S. Attorney Wendy J. Olson announced. The charge is punishable by up to one year in prison or five years’ probation, a maximum fine of $100,000, and up to one year of supervised release.
According to plea agreements filed in the case, on March 13, 2009, Henecke obtained a residential loan to finance the purchase of a residence in Eagle, Idaho. The loan application submitted in support of the loan falsely represented that his co-borrower had employment income of $2,400 per month, when in fact she had no income. The lender relied upon this information in funding the loan, which was guaranteed by HUD. Shortly after the loan was funded, it went into default and foreclosure, causing HUD to sustain a loss. When interviewed by investigators, Henecke admitted that he knew false employment information was submitted to obtain the loan. He agreed to pay restitution of $42,905.
Shaw admitted during an interview with investigators in April 2011, that she assisted in the fraud by providing false employment information in order for the borrowers to qualify for the loan. According to the plea agreement, false documents included payroll checks, check stubs, a general employment contract, and employee confidentiality agreement. Shaw also agreed to pay $42,905 in restitution.
Henecke and Shaw are scheduled to be sentenced on September 25, 2013, before U.S. Magistrate Judge Ronald E. Bush at the federal courthouse in Pocatello.
The case was investigated by the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG).
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.
Two More Arrested in Ongoing Probe of Armed Phone Store Robberies in Paramus and Woodbridge, N.J.Read the Press Release
NEWARK, N.J. – FBI special agents arrested two men in Brooklyn, N.Y., this morning in connection with armed robberies of T-Mobile stores in Paramus and Woodbridge, N.J., U.S. Attorney Paul J. Fishman announced.
Unique Randolph, 26, and Sulayman Graham, 30, both of Brooklyn, are charged in separate criminal complaints with one count each of committing a Hobbs Act robbery. Randolph is also charged with one count of using a firearm in furtherance of that robbery. Both defendants are scheduled to appear today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to the two criminal complaints unsealed today and other documents filed in connection with this case:
The FBI has been investigating a series of armed robberies in Bergen, Middlesex and Union Counties, as well as other locations, between May 2012 and January 2013 – including armed robberies of T-Mobile stores in Linden, Woodbridge and Paramus, N.J. Four other N.Y. men – Terrell McQueen, Leonard Arrington, Carl Williams and Eric Williams (no relation) – were previously arrested and indicted in connection with this investigation. The charges against those four defendants remain pending.
On Jan. 16, 2013, Randolph and another man entered the T-Mobile store in Paramus, N.J. After tying up two employees and a customer and forcing them to lie on the floor, the men forced a third employee, at gunpoint, to fill two laundry bags with more than 70 cell phones. Afterward, the men left the employee tied up on the floor with the others.
During the robbery, a UPS employee walked into the store and was forced at gunpoint to join the restrained group.
On Oct. 2, 2012, Arrington entered a T-Mobile store in Woodbridge, carrying a gun, along with another man. After locking the front door, the men took the employees to the back of the store and tied them up, then stole approximately 40 cell phones. One of the robbers then called the getaway driver, Graham, who drove them away in a Land Rover. McQueen, Eric Williams and others delivered the stolen phones to the same Brooklyn store.
The charges of Hobbs Act robbery carry a maximum potential penalty of 20 years in prison. The charge of use of a firearm in furtherance of a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years, which must run consecutively to one another and to any other prison term. Each of the counts also carries a maximum fine of $250,000.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the arrest and charges. He also thanked the Linden and Woodbridge Police Departments in New Jersey, as well as the New York City and Nassau County Police Departments and the Kings County District Attorney’s Office in New York for their excellent work in this case.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Nicholas P. Grippo of the U.S. Attorney’s Office General Crimes Unit in Newark.The charges and allegations contained in the complaints and indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
13-307Graham Complaint
Randolph ComplaintTwo Men Sentenced to Federal Prison for Meth ConspiracyRead the Press Release
BOISE – Co-defendants Michael Duschka, 37, and Shannon Stewart, 42, both of Boise, were sentenced today in federal court by Chief U.S. District Judge B. Lynn Winmill. Duschka was sentenced to 68 months in prison followed by three years of supervised release for conspiring to distribute methamphetamine. He pleaded guilty to the charge on March 7, 2013. Stewart was sentenced to 32 months in prison followed by three years of supervised release for distribution of methamphetamine. He pleaded guilty on February 27, 2013.
According to information presented in court, Duschka and Stewart conspired and agreed to sell methamphetamine to a confidential informant. On March 1, 2012, Duschka and Stewart met with the confidential informant to distribute methamphetamine and sold the individual approximately four grams of methamphetamine. Duschka is already serving a state sentence for distributing methamphetamine.
The case was investigated by the Treasure Valley Metro Violent Crimes Task Force, which is comprised of federal, state and local agencies, including the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, Canyon County Sheriff’s Office, and the Idaho Department of Correction.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Two Individuals Sentenced for Conspiracy to Commit Bribery Concerning Programs Receiving Federal FundsRead the Press Release
SAN JUAN, PR – Today Daniel Erazo-Burgos and Brenda Velàzquez-Corchado, former procurement officials with the Puerto Rico Department of Education (PR DOE) were sentenced to 18 and 30 months of imprisonment respectively for conspiracy to commit a violation of Title 18 USC Section 666(a)(1)(B), Bribery Concerning Programs Receiving Federal funds, announced United States Attorney Rosa Emilia Rodríguez-Vélez.
Daniel Erazo-Burgos, was the Procurement Supervisor of the Puerto Rico Department of Education (PR DOE), was sentenced by United Stated District Chief Judge Aida Delgado-Colón to 18 months in prison. He had pleaded guilty on August 29, 2012. Erazo-Burgos was supervising and coordinating the PRDOE procurement officers in the Caguas and Ponce regions in their compliance with all necessary and appropriate procedures related to the processing of purchase orders. Defendant accepted cash and goods from other co-defendants in return for his assistance in the expeditious processing of invoices for payment on contracts awarded to the co-defendants by PRDOE.
Defendant Velàzquez-Corchado was the sole defendant remaining of a 13 person indictment filed against various PR DOE officials, which included the Chief Procurement Officer of the PR DOE Luis Conde-Rosa, and various company officials doing business with the Department. Velàzquez-Corchado was found guilty on April 19, 2013; United States District Court Senior Judge Juan Pérez-Giménez presided the trial. The jury found that between January 2008 through February 2010, the defendant conspired with others to corruptly solicit, demand, give and accept things of value, goods and cash, intending to be influenced and rewarded in connection with a transaction and a series of transactions. The evidence presented at trial showed that approximately $2,900,000.00 dollars in contracts were awarded to companies where the defendant received over $25,000 in bribes, which included cash and goods.
“These individuals defrauded education programs, with the assistance of public employees who abused their positions for personal gain,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “We will continue to investigate and prosecute those who engage in corrupt acts which directly affect federal programs and the availability of these funds for its intended recipients,” stated Rodríguez-Vélez.The case was prosecuted by Assistant United States Attorneys Julia Díaz-Rex and Héctor Ramírez. The investigation was led by the U.S. Department of Education, Office of the Inspector General (DOE-OIG), with the collaboration of the Federal Bureau of Investigation (FBI) and the Comptroller’s Office in Puerto Rico.
Tucson Man Sentenced to 135 Months for Defrauding over 1,600 PeopleRead the Press Release
TUCSON, Ariz. – On July 23, 2013, Anthony Mark Boscarino, 47, of Tucson, Ariz., was sentenced by U.S. District Judge Cindy K. Jorgenson to 135 months. Boscarino pleaded guilty January 23 and February 27, 2013 to 43 crimes including fraud, money laundering and tax evasion.
Boscarino was involved in multiple frauds using his internet sports handicapping site which operated under several names including Mike’s Lock Club. He solicited victims to invest in gambling junkets to Las Vegas, in an oil well project in Louisiana, in Collateralized Mortgage Obligations and several other scams. He was ordered to pay restitution of $6.5 million to the 1,685 victims of his fraudulent activity and $1.3 million in unpaid taxes for 2009. The court also ordered a $4.8 million money judgment against him and forfeited several of his cars and bank accounts.
The investigation in this case was conducted by Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigations Division. The prosecution was handled by Wallace H. Kleindienst and John R. Evans, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR- 10-01942-PCT-CKJ
RELEASE NUMBER: 2013-058_BoscarinoFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Three North Miami Residents Charged with Filing Fraudulent Tax Returns and Receiving over $1.8 Million in Fraudulent RefundsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Ronald Verrocchio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announced the filing of an indictment charging defendants Gerald Duverger, 34, and Jean Louis, 40, both of North Miami, with filing false, fictitious, and fraudulent claims and with wire fraud. A separate indictment was filed charging Jeaneno Florent, 37, also of North Miami, with filing false, fictitious, and fraudulent claims. Defendants Duverger and Louis were arraigned today in federal court in Miami before U.S. Magistrate Judge Barry L. Garber at 10:00 a.m. Defendant Florent will be arraigned at a later date.
Defendant Louis is charged with one count and defendants Duverger and Florent are each charged with two counts of filing false, fictitious, and fraudulent claims, in violation of Title 18, United States Code, Section 287. Defendants Duverger and Louis are each charged with one count of wire fraud, in violation of Title 18, United States Code, Section 1343.
According to the charging documents, in 2012, the USSS received information that two large tax refund checks had been paid on tax returns filed by Duverger and Florent. With respect to Duverger, the tax return fraudulently indicated that Duverger made $8 million in wages from Capitol Records, Inc. and was entitled to a refund of approximately $613,043. The Department of Treasury sent the tax refund to a bank account controlled by Duverger.
As further alleged in the charging documents, in January 2013, a tax return was submitted in the name of Louis claiming over $9 million in wages from Warner Bros Distribution Corporation and seeking a refund of approximately $600,281. On July 3, 2013, the Department of Treasury sent the tax refund of approximately $603,883 to Louis’ bank account.
If convicted, the defendants face a possible maximum statutory sentence of five years in prison for each count of filing false, fictitious and fraudulent claims and 20 years in prison for each count of wire fraud.
Mr. Ferrer thanked IRS-CI, USPIS, USSS, and Miami Beach Police Department for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
An indictment is only an accusation and the defendants are presumed innocent until proven guilty.
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.
Three Former UBS Executives Sentenced to Serve Time in Prison for Frauds Involving Contracts Related to the Investment of Municipal Bond ProceedsRead the Press Release
Three former financial services executives were sentenced today in U.S. District Court for the Southern District of New York for their participation in frauds related to bidding for contracts for the investment of municipal bond proceeds and other municipal finance contracts, the Department of Justice announced.
Peter Ghavami, Gary Heinz and Michael Welty, all former UBS AG executives, were convicted on Aug. 31, 2012, after a five-week trial for their roles in the frauds. They were sentenced today by U.S. District Court Judge Kimba Wood. Ghavami was sentenced to serve 18 months in prison and to pay a $1 million criminal fine; Heinz was sentenced to serve 27 months in prison and to pay a $400,000 criminal fine; and Welty was sentenced to serve 16 months in prison and to pay a $300,000 criminal fine.
“For years, these executives corrupted the competitive bidding process and defrauded municipalities across the country for important public works projects,” said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program. “The division will continue to prosecute those who subvert and corrupt competitive markets for personal profit.”
According to evidence presented at trial, while employed at UBS, Ghavami, Heinz and Welty participated in multiple fraud conspiracies and schemes with various financial institutions and with a broker, at various time periods from as early as March 2001 until at least November 2006. These financial institutions, or providers, offered a type of contract – known as an investment agreement – to state, county and local governments and agencies, and not-for-profit entities, throughout the United States. The public entities were seeking to invest money from a variety of sources, primarily the proceeds of municipal bonds that they had issued to raise money for, among other things, public projects. Public entities typically hire a broker to assist them in investing their money and to conduct a competitive bidding process to determine the winning provider.
At trial, the Department of Justice showed that while acting as providers, Ghavami, Heinz and Welty conspired with other providers and with a broker to corrupt the bidding process for more than a dozen investment agreements in order to increase the number and profitability of the agreements awarded to UBS. At other times, while acting as brokers, Ghavami, Heinz, Welty and their co-conspirators arranged for UBS to receive kickbacks in exchange for manipulating the bidding process and steering investment agreements to certain providers. Ghavami, Heinz and Welty deprived the municipalities of competitive interest rates for the investment of tax-exempt bond proceeds that were to be used by municipalities to refinance outstanding debt and for various public works projects, such as for building or repairing schools, hospitals and roads. Evidence at trial established that they cost municipalities around the country and the U.S. Treasury millions of dolla rs.During the trial, the government presented specific evidence relating to 26 corrupted bids, including 76 recorded conversations made by the co-conspirator financial institutions. Among the issuers and not-for-profit entities whose agreements or contracts were subject to the defendants’ schemes were the commonwealth of Massachusetts, the New Mexico Educational Assistance Foundation, the Tobacco Settlement Financing Corporation of Rhode Island, the Hospital Authority of Forsyth County, Ga., and the RWJ Health Care Corp. at Hamilton in New Jersey.
“The charges against these individuals outline a deceptive scheme to subvert competition in the marketplace. Those who engage in this type of criminal activity not only stand to defraud public entities, but erode the public’s trust in the competitive bidding process,” said George Venizelos, Acting Director in Charge of the FBI in New York. “The sentences announced today remind the public that the FBI will continue to work with the Antitrust Division to ensure the integrity of competitive bidding in public finance.”
“Those who manipulate the competitive bidding system to benefit themselves will be held accountable for their criminal activity,” said Richard Weber, Chief, Internal Revenue Service – Criminal Investigation (IRS-CI). “The defendants conspired with others to corrupt the bidding process for more than a dozen investment agreements in order to increase the profitability of the agreements awarded to UBS. Quite simply, they enriched themselves at the expense of the towns and cities that needed the money for important public works projects such as building and repairing schools, hospitals and roads. IRS-CI is committed to using our financial expertise to uncover this kind of corruption.”
Ghavami was found guilty on two counts of conspiracy to commit wire fraud and one count of substantive wire fraud. Heinz was found guilty on three counts of conspiracy to commit wire fraud and two counts of substantive wire fraud. Welty was found guilty on three counts of conspiracy to commit wire fraud.
A total of 20 individuals have been charged as a result of the department’s ongoing municipal bonds investigation, and 19 have been convicted or pleaded guilty. Another individual awaits trial. Additionally, one company, Rubin/Chambers, Dunhill Insurance Services Inc. has pleaded guilty.The sentences announced today resulted from an ongoing investigation conducted by the Antitrust Division’s New York and Chicago Offices, the FBI and the IRS-CI. The division is coordinating its investigation with the U.S. Securities and Exchange Commission, the Office of the Comptroller of the Currency and the Federal Reserve Bank of New York.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Anyone with information concerning bid rigging and related offenses in any financial markets should contact the Antitrust Division’s New York Office at 212-335-8000, the FBI at 212-384-5000 or IRS-CI at 212-436-1761, or visit www.justice.gov/atr/contact/newcase.htm.Three Charged with Sex Trafficking at Wichita Massage ParlorsRead the Press Release
WICHITA, KAN. – A man and two women have been charged with sex trafficking in Asian massage parlors in Wichita, U.S. Attorney Barry Grissom said today.
Gary H. Kidgell, 44, Waltham, Mass., is charged with two counts of conspiracy to commit sex trafficking and one count of conspiracy to transport a person in interstate commerce to engage in prostitution.
Yan Zhang, 49, Wichita, Kan., is charged with one count of conspiracy to commit sex trafficking and three counts of sex trafficking.
Xiuqing Tian, 42, Framingham, Mass., is charged with two counts of conspiracy to commit sex trafficking and one count of conspiracy to transport a person in interstate commerce to engage in prostitution.The three defendants were named in a criminal complaint filed Friday in U.S. District Court in Wichita. An affidavit in support of the complaint included the following allegations:
– The investigation began in 2010 when the Wichita Police Department began monitoring an internet Web site that provided a forum for patrons of sexually oriented businesses to post descriptions of their experiences and to discuss sexual acts and the costs.
– Some posts indicated individuals had received sexual acts in exchange for money at AG Spa at 2260 N. Ridge Road, Suite 150, in Wichita and Sun Chi Spa at 1030 E. 1st in Wichita.
– Police received complaints from citizens about a disturbance in the early morning hours at AG Spa. On May 20, 2010, police responded to a disturbance at AG Spa and found six persons involved in a fight including Gary Kidgell, the owner of AG Spa, Xiuqing Tian, an employee of the spa and Yan Zhang, as well as other persons.
– Kidgell and Zhang were married. Zhang was arrested in July 2013 for prostitution.
– Police officers working undercover confirmed that Asian female workers offered sex acts for money.
– Police served a search warrant and obtained a notebook containing handwritten Chinese-English translations for phrases commonly used in a massage spa, as well as sexually explicit phrases including, “Did you bring a condom?” They also seized written copy in Chinese for advertisements in newspapers in New York, Chicago and San Francisco offering “massage parlor hiring” in Kansas.
– Police interviewed Asian female workers who offered and performed sex acts for money. In those interviews they learned that Asian women came to Wichita to work in the massage parlors because they were told they would make a lot of money. Once in Wichita they found the work was hard and they did not earn as much as they expected. Some of them were told never to leave the business because the area around the stores was dangerous. Some of the women said they were allowed to keep money they made by performing sex acts.Upon conviction, the crimes carry the following penalties:
– Conspiracy to commit sex trafficking: A fine up to $250,000 and imprisonment of any term of years.
– Conspiracy to transport a person in interstate commerce for prostitution: A maximum penalty of 10 years in federal prison and a fine up to $250,000.
– Sex trafficking: Not less than 15 years and a fine up to $250,000 on each count.In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Tampa Man Pleads Guilty to Stolen Identity Refund FraudRead the Press Release
Tampa, Florida - Acting United States Attorney A. Lee Bentley, III announces that Marterrance Q. Holloway (33, Tampa) pleaded guilty today to aggravated identity theft and access device fraud charges, in addition to charges that he conspired with others to defraud the United States Treasury. Holloway faces a maximum penalty of five years in federal prison on the conspiracy charge, ten years on the fraud charge, and a consecutive two-year prison sentence on the aggravated identity theft charge. As part of the plea, Holloway also agreed to forfeit two 2010 Chevrolet Camaros, a 2011 Dodge Charger, a 2005 Dodge Magnum, a motor scooter, an Apple iPad, cash and assorted jewelry -- all of which were purchased with the proceeds of his fraud. The net proceeds of the forfeited items will be credited towards any future forfeiture money judgment. A sentencing date has not yet been scheduled.
On April 17, 2013, Holloway's co-defendant, Maurice Larry, pleaded guilty to similar charges. Larry is scheduled for sentencing on September 23, 2013, at 10:30 A.M. before U.S. District Judge Elizabeth A. Kovachevich.
According to Holloway's plea agreement, he and Larry filed fraudulent tax returns from the Howard Johnson Hotel on 50th Street in Tampa. A room at the hotel was purchased in Larry's name. In the hotel room were four computers that were used to electronically file fraudulent tax returns in the names of deceased individuals. Also located in the room were pages from an internet website, along with ledgers and lists of stolen names, dates of birth and social security numbers. Some of the names included specific codes to be used for electronic filing purposes or notes about whether a tax return had been either accepted or rejected. Multiple "Turbo Tax" reloadable debit cards were found in the hotel room, along with ATM receipts for cash withdrawals, and approximately $3,700 in cash. Both Holloway and Larry admitted to filing fraudulent tax returns while staying at the hotel.
Approximately one year later, Holloway used a fraudulent debit card at a local bank ATM machine. The debit card was loaded with the proceeds of a fraudulently filed tax return in the amount of over $9,800.
This case was investigated by the Internal Revenue Service - Criminal Investigation, the United States Secret Service and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Superior, Wisconsin, Woman Sentenced for Assaulting Another Woman in Retaliation for Being A Government WitnessRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 23-year-old inmate was sentenced for retaliating against another inmate for being a government witness in a drug-trafficking trial. On July 23, 2013, United States District Court Judge David S. Doty sentenced Veronique Zsa zsa Antique Muckle to 121 months in prison on one count of federal witness retaliation. Muckle was indicted on September 11, 2012, and was convicted on April 12, 2013.
According to the indictment and evidence presented at trial, Muckle assaulted Angelique Michelle Vos on August 14, 2012, following Vos’ return to the Sherburne County Jail, after Vos testified as a government witness during a narcotics trial of Lawrence Lalonde Colton. Muckle, Vos, and more than three dozen others pleaded guilty for their roles in a large-scale drug-trafficking organization that transported prescription pills and heroin from Detroit to the Twin Ports region in Minnesota. In September 2011, the organization was brought down after it was investigated by the Lake Superior Drug and Violent Crime Task Force and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”).
Beginning on August 12, 2012, Colton was on trial for his role in the drug-trafficking activity. At the time, Muckle and Vos were held separately in the Sherburne County Jail. Muckle was already sentenced to 52 months in prison for her participation in the original drug conspiracy, and was awaiting placement in the federal prison system. When Vos returned from federal court on August 14, 2012, Muckle ran from a segregated area of the facility and violently attacked Vos for testifying against Colton earlier that day. Colton was later convicted.
This case was the result of an investigation by the Sherburne County Sheriff’s Office, the Lake Superior Drug and Violent Crime Task Force, the Duluth Police Department, and the ATF. It was prosecuted by Assistant U.S. Attorneys Allen A. Slaughter and Amber M. Brennan.Stamford Resident Sentenced to Federal Prison for Trafficking CocaineRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that DIMITRIOS KARIPIDIS, 54, a citizen of Greece last residing in Stamford, was sentenced today by Senior United States District Judge Warren W. Eginton in Bridgeport to 18 months of imprisonment, followed by three years of supervised release, for trafficking cocaine.
This matter stems from a year-long investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Norwalk Police Department into the trafficking of oxycodone, cocaine and marijuana in Fairfield County. In February 2012, KARIPIDIS was intercepted over a court-authorized wiretap engaging in discussions involving the illegal distribution of cocaine.
Sixteen individuals have been charged as a result of this investigation.
KARIPIDIS has been detained since his arrest on June 12, 2012. On May 1, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine.
KARIPIDIS faces deportation proceedings at the conclusion of his sentence.
This matter is being investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Norwalk Police Department, with assistance provided by the Connecticut State Police and the Bridgeport, Stamford and Stratford Police Departments. The case is being prosecuted Assistant United States Attorneys Peter Markle and Vanessa Richards.
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