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11 September 2013
Pest Control Company and Its Owner Charged with Unlawful Application of Pesticides and FalsificationRead the Press Release
WASHINGTON – A pest control services company and its owner have been charged today in the U.S. District Court for the Middle District of Georgia with conspiracy, unlawful use of pesticides, false statements, falsification of records and mail fraud, announced Robert G. Dreher, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division and Michael J. Moore, U.S. Attorney for the Middle District of Georgia.
Steven A. Murray, 54, of Pelham, Ala., and his company, Bio-Tech Management Inc., were charged in a felony indictment with one count of conspiracy, 10 counts of making false statements, 20 counts of falsifying records, 10 counts of mail fraud and 10 counts of unlawful use of a pesticide.The indictment alleges that from October 2005 to June 2009, Steven Murray and Bio-Tech repeatedly misapplied the registered pesticide Termidor SC in nursing homes in the state of Georgia and falsified documents to conceal the unlawful use. The indictment further alleges that Murray and Bio-Tech sent invoices through the U.S. Mail to their nursing home clients to solicit payment for the unlawful pesticide applications.
According to the indictment, Steve Murray and Bio-Tech provided monthly pest control services to nursing homes in Georgia by spraying pesticides in and around their clients’ facilities. The indictment alleges that, at the direction of Murray, Bio-Tech employees routinely applied the pesticide Termidor indoors more than twice a year, contrary to the manufacturer’s label instructions. The indictment further alleges that after the Georgia Department of Agriculture made inquiries regarding Bio-Tech’s misuse of Termidor and other pesticides, Murray directed several of his Bio-Tech employees to alter company service reports with the intent to obstruct an investigation.
U.S. Environmental Protection Agency (EPA) regulations require that all pesticides be registered, properly labeled, and applied as specified by manufacturer’s labeling to protect public health and the environment.
A criminal indictment is not a finding of guilt. An individual or company charged by criminal indictment is presumed innocent unless and until proven guilty in a court of law.
The falsifying records and mail fraud charge carry a maximum sentence of 20 years in prison and $250,000 fine per count. The false statements charges each carry a maximum sentence of five years in prison and a $250,000 fine.
IF YOU HAVE QUESTIONS, PLEASE CONTACT THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
These cases are being investigated by Special Agents of the EPA’s Criminal Investigations Division in Atlanta and prosecuted by Trial Attorneys Richard J. Powers and Adam C. Cullman of the Justice Department’s Environment and Natural Resources Division, Environmental Crimes Section.Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
North Texas Men Guilty of Federal Firearms ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – Two North Texas men have pleaded guilty to federal firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Colten David Barrow, 22, of Quinlan, Texas, and Craig Marcus Cooper, 42, of Farmersville, Texas, each pleaded guilty today before U.S. Magistrate Judge John D. Love. Barrow pleaded guilty to attempting to sell a machinegun and Cooper pleaded guilty to being a felon in possession of a machinegun.
According to information presented in court, on Jan. 31, 2012, Barrow and Cooper traveled together to Duke’s Truck Stop on Highway 64 in Van Zandt County, Texas to meet an individual interested in buying the machinegun. The defendants intended to sell the firearm to the individual for $10,000. However, the buyer was actually an undercover federal agent. The defendants were detained and the 9 mm, fully automatic machine gun with an attached silencer was seized. Further investigation revealed Cooper was a felon having been previously convicted of felony criminal mischief in Collin County, Texas in 2011. Federal law prohibits convicted felons from owning or possessing firearms or ammunition. A federal grand jury returned an indictment on Mar. 27, 2013, charging the defendants with firearms violations.Barrow and Cooper each face up to 10 years in federal prison at sentencing. A sentencing date has not been set. A third defendant is awaiting trial.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Jim Noble.
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.New York Man Admits to Participating in Seven Armed Robberies of Electronics Stores in New Jersey and New YorkRead the Press Release
TRENTON, N.J. – A Long Island, N.Y., man admitted today to participating in seven armed robberies of electronics stores in New Jersey and New York, U.S. Attorney Paul J. Fishman announced.
Leonard Arrington, 27, of Roslyn Heights, N.Y., pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of conspiracy to commit Hobbs Act robberies and one count of using a firearm in furtherance of a crime of violence.
Arrington was arrested on May 22, 2013, originally charged in an indictment in connection with the Oct. 2, 2012, robbery of a Woodbridge, N.J., T-Mobile store. He has been in custody since his arrest.
According to documents filed in this case and statements made in court: Between May 30, 2012, and Oct. 2, 2012, Arrington conspired with others to commit a series of gunpoint electronics store robberies during which he and accomplices stole merchandise for illegal resale. Typically, store employees were threatened at gunpoint and restrained during the robberies.
In pleading guilty to the gun charge, Arrington admitted that on Oct. 2, 2012, he entered a T-Mobile store in Woodbridge, brandishing a firearm, 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, who drove them away in a Land Rover. Accomplices delivered the stolen phones to a cell phone store in Brooklyn.
In all, Arrington admitted to participating in the following robberies:
Date
Bank
LocationRadio Shack
New Rochelle, N.Y.
June 11, 2012
T-Mobile Store
Hempstead, N.Y.
June 18, 2012
Radio Shack
Westbury, N.Y.
June 20, 2012
T-Mobile Store
West Hempstead, N.Y.
June 21, 2012
Radio Shack
Rockville Center, N.Y.
September 20, 2012
T-Mobile Store
Linden, N.J.
October 2, 2012
T-Mobile Store
Woodbridge, N.J.
The conspiracy charge carries a maximum potential penalty of 20 years in prison. The firearm charge carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years in prison, which must run consecutively to one another and to any other prison term. Each count also carries a maximum $250,000 fine. Sentencing is scheduled for Jan. 22, 2014.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation. 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 Criminal Division.
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Defense counsel: Dennis Cleary Esq., Newark, N.J.Arrington Superseding Information
Monroe County Woman Sentenced to Prison ForRead the Press Release
Federal Cocaine Trafficking And Money Laundering ChargesThe United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County woman was sentenced today by Senior United States District Judge Edwin M. Kosik to serve 48 months in prison on the charges of conspiracy to distribute cocaine and conspiracy to commit money laundering.
According to United States Attorney Peter J. Smith, Denisse Camilo-Cepeda, age 32, formerly of Stroudsburg, Monroe County, admitted to participating in a conspiracy to distribute powder cocaine and to commit money laundering in the Monroe County and Northampton County areas in 2011.
Previously, Camilo-Cepeda’s husband, Dickson Gutierrez, age 37, formerly of Stroudsburg, was sentenced to 60 months in prison for his participation in the same cocaine trafficking conspiracy.
As part of their plea agreements, Gutierrez and Camilo-Cepeda also agreed to forfeit to the United States two properties in the Dominican Republic which they purchased with the proceeds of cocaine trafficking activity. Camilo-Cepeda also faces deportation proceedings.
In addition to the prison term, Senior Judge Kosik also ordered that Camilo-Cepeda be supervised by a probation officer for five years following her prison sentence if she is not deported.
The investigation was conducted by the Drug Enforcement Administration, the Stroud Area Regional Police Department and the Internal Revenue Service, Criminal Investigations.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
****Mission Woman Pleads Guilty to Wire FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that Clarice Brave, age 51, of Mission, South Dakota, appeared before U.S. District Judge Roberto A. Lange on September 9, 2013, and pled guilty to the Indictment that charged her with Wire Fraud.
The maximum penalty upon conviction is 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund.
The charge stems from the timeframe between August 1, 2012, and September 24, 2012, when Brave devised a rolling deposit scheme to obtain money from the Family Dollar store in Mission. Brave took cash out of store deposit bags for personal use and delayed taking deposits to the bank until she had enough cash from successive days to replace the money she previously took. When Family Dollar management began to suspect Brave was rolling deposits, Brave was required to fax deposit tickets, the deposit log, and the store’s daily cash receipt totals to the Family Dollar’s Loss Prevention Director in Shawnee, Kansas, on a daily basis. On September 21, 2012, Brave was able to get a teller to issue five deposit tickets from the bank without depositing any cash into Family Dollar’s bank account. She then faxed the fraudulently obtained deposit tickets from Mission to Shawnee, Kansas, in an attempt to conceal the rolling deposit scheme.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered, and a sentencing date was set for November 25, 2013.
Brave was released on conditions pending sentencing.Minnesota Man Sentenced for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Cambridge, Minnesota, man charged with Failure to Pay Child Support was sentenced on September 9, 2013, by U.S. District Court Judge Charles B. Kornmann.
Kenneth B. Kleppen, age 42, was sentenced to 5 years of unsupervised probation, a $100.00 special assessment to the Federal Crime Victims Fund, and child support restitution in the amount of $54,778.41.
Kleppen was indicted for failing to pay over $47,720.00 in past due child support by a federal grand jury on January 8, 2013. In 1999, the defendant had a relationship with a woman which resulted in the birth of a child on January 23, 2000. The relationship with the mother ended in 2000, and on June 30, 2000, an order was filed with the Third Judicial Circuit Court, Codington County, South Dakota, ordering the defendant to pay a total of $2,447.90 in arrearages and attorney fees. Furthermore, he was ordered to pay on-going child support in monthly payments of $353. On November 22, 2004, the child support order was modified, and the defendant was ordered to pay a monthly amount of $550.
From January 2010 until October 2010, the mother entered into an agreement with the child’s maternal grandmother giving the grandmother temporary guardianship. As a result, the mother and the defendant were required to pay the grandmother for support of the child. Although the mother paid her portion, the defendant never made a payment. Subsequently, the defendant owes $5,500 in arrears to the maternal grandmother. Kleppen pled guilty to the charge on September 9, 2013.
This case was investigated the Department of Health and Human Services, Office of Inspector General Assistant U.S. Attorney Thomas J. Wright prosecuted the case. The defendant was released from custody.Mexican Drug Cartel Working with Members of Mexican Mennonite Community Indicted for Large Scale Marijuana TraffickingRead the Press Release
DENVER – A federal grand jury in Denver returned a nine-count indictment charging seven individuals with conspiracy to distribute and possess with intent to distribute 1,000 kilograms or more of marijuana, a Schedule I Controlled Substance, and use of a communications device (phone) to facilitate drug trafficking, U.S. Attorney John Walsh and Drug Enforcement Administration (DEA) Special Agent in Charge Barbra Roach announced. The grand jury returned the indictment on August 6, 2013. One of the seven defendants, Abraham Friesen-Remple, was arrested on August 20, 2013 in the Santa Teresa Point of Entry in New Mexico. He appeared in federal court yesterday, September 10, 2013, for a detention hearing. A U.S. Magistrate Judge ordered Friesen-Remple to be held without bond pending a resolution of the case.
According to court records and testimony presented during Friesen-Remple’s detention hearing, the defendants worked with a Mexican Drug Cartel, trafficking thousands of kilograms of marijuana first by putting the drugs in the gas tanks of cars, and later putting the drugs inside large farm equipment. At the beginning of the conspiracy the vehicles crossed the Mexican border and drove to Colorado Springs, where the marijuana was off-loaded at an auto-body repair shop. Drivers then took the marijuana to various places across the country.
After the individual who ran the Colorado Springs auto body shop was arrested, the organization decided to move the marijuana trafficking from Colorado Springs to North Carolina. Trucks carrying farm equipment continued to transport the marijuana throughout the United States. Many of those charged are members of the Mexican Mennonite community.
Those indicted by the grand jury are:
Eduardo Tellez-Ponce
Ulises Castillo-Meraz
Abraham Friesen-Remple
Enrique Harms-Groening
David Loewen
Juan Reimer
Pedro Dyke-FriesenLaw enforcement are searching for the other six defendants in this case, all of whom are considered fugitives and many of which are believed to be outside the United States.
“This case involves smuggling literally tons of marijuana into the United States from Mexico, with Mexican Cartel involvement,” said U.S. Attorney John Walsh. “International trafficking of drugs, particularly with organized crime involvement, is a top priority of federal law enforcement and the U.S. Attorney’s Office. The fact that this case involves marijuana in no way reduces its status as a high priority matter, consistent with recent guidance from the Department of Justice on marijuana enforcement issues.”
“The Drug Enforcement Administration continues to fulfill its mission by investigating and dismantling high level drug trafficking organizations,” said DEA Special Agent in Charge Barbra Roach. “Marijuana traffickers continue to pose a significant threat to our young people and our communities.”
If convicted of conspiracy to distribute and possess with intent to distribute 1,000 kilograms or more of marijuana, the defendants face not less than 10 years, and not more than life in prison, as well as a $10,000,000 fine. If convicted of use of a communications facility (telephone) for drug trafficking, those charged with that offense face not more than 4 years in prison, and up to a $250,000 fine.
This case was investigated by the Drug Enforcement Administration (DEA), including the Denver, Grand Junction and Glenwood Springs offices.
The defendants are being prosecuted by Assistant U.S. Attorneys Stephanie Podolak and Michele Korver.
The allegations contained in the indictment are charges, and the defendant are presumed innocent unless and until proven guilty.
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McLaughlin Woman Charged with LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, woman has been indicted by a federal grand jury.
Rhea Archambault, age 53, was indicted on August 21, 2013, for Larceny. Archambault appeared before U.S. Magistrate Judge Mark A. Moreno on September 10, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 5 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, an additional 2 years of supervised release upon revocation, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from the alleged writing of several checks from a stolen checkbook in March of 2013. The charge is merely an accusation, and Archambault is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Troy Morley is prosecuting the case.
Archambault was released on bond pending trial. A trial date has not been set.McLaughlin Man Sentenced for Assault with Intent to Commit MurderRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man convicted of Assault with Intent to Commit Murder was sentenced on September 9, 2013, by U.S. District Judge Charles B. Kornmann.
Farrell was immediately turned over to the custody of the U.S. Marshals Service.
Ross Dean Farrell, age 21, was sentenced to 121 months of imprisonment, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Farrell was indicted for the above charge by a federal grand jury on October 16, 2012, and pled guilty on May 28, 2013.
The charge stems from an incident occurring on October 8, 2012, in which Farrell was socializing with the victim and others at his home. At some point in the evening, the victim went to sleep on a mattress on the floor. Farrell, outraged by a perceived slight he had received from either the victim or another person, found the victim and pulled him off the mattress onto the cement floor and proceeded to repeatedly stomp the victim on the head and face with his feet.
At the time of the attack, Farrell intended to kill the victim, as shown by the severity of the attack. The victim suffered major injuries, including severe head trauma which required emergency surgeries and had to be placed in a medically induced coma.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.Maryland Man Sentenced to 21 Months in Prison for Failing to Register as A Sex OffenderDefendant Worked at Multiple Churches in the District of ColumbiaRead the Press Release
WASHINGTON – Gary Darrell Mabry, 34, of Baltimore, Md., was sentenced today to 21 months in prison for failing to register as a sex offender at a time when he was working at three churches in the District of Columbia, announced U.S. Attorney Ronald C. Machen Jr. and Michael Hughes, U.S. Marshal for the Superior Court of the District of Columbia.
Mabry pled guilty in May 2013 to the federal offense of failing to register as a sex offender. He was sentenced in the U.S. District Court for the District of Columbia by the Honorable Beryl A. Howell. Upon completion of his prison term, Mabry will be placed on five years of supervised release. During that time, he must comply with all sex offender registration requirements, undergo sex offender assessment and treatment, and abide by limitations regarding contact with minors.
Mabry has three prior convictions in Maryland and the District of Columbia for sex offenses involving minor victims, ages 13 and 14, which require him to register as a sex offender. He was required by law to register as a sex offender in any jurisdiction where he resides, where he is an employee, whether compensated or not, and where he is a student.
According to the government’s evidence, from March 2009 until his arrest Feb. 26, 2013, Mabry had registered as a sex offender in Maryland, stating that is where he lived and worked. Specifically, he informed the Maryland registry that he was a self-employed freelance musician and he provided his home address as the employment address.
In fact, between March 2009 and October 2012, Mabry worked at three different churches in the District of Columbia, all in music-related positions, without registering that employment with the D.C. sex offender registry or the Maryland sex offender registry.
As part of an overall strategy to combat child exploitation, the U.S. Marshals Service launched a nationwide operation to target sex offenders who knowingly fail to comply with their sex offender registration requirements. The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the U.S. Marshals Service, to assist the states in locating and apprehending non-compliant sex offenders.
In announcing today’s sentence, U.S. Attorney Machen and U.S. Marshal Hughes praised the members of the D.C. Superior Court Sex Offender Investigations Section of the U.S. Marshals Service, who investigated the case, and Assistant U.S. Attorneys Cassidy Kesler Pinegar and Sarah McClellan, who prosecuted the case.
13-311Luzerne County Man Charged with Receiving and Distributing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 38-year-old Luzerne County resident was indicted by a federal grand jury Tuesday on charges of receiving and distributing child pornography.
According to United States Attorney Peter J. Smith, the defendant, Michael Shaw, allegedly downloaded and traded child pornography during 2012 until June 5, 2013.
The charge against Shaw resulted from an investigation by special agents and task force officers of the Federal Bureau of Investigation, investigators from the Pennsylvania State Police, detectives from the Luzerne County District Attorney’s Office, and local police.
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 internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the mandatory minimum sentence is five years imprisonment. The maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Local Police Departments Receive Funds from Dismantled Internet PharmacyRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – The federal government provided nearly $1 million in forfeiture proceeds to local police departments for their assistance in dismantling a wide-scale Internet-based pharmacy, announced Eastern District of Texas U.S. Attorney John M. Bales today.
U.S. Attorney Bales presented checks totaling $897,352.26 to the following agencies at a ceremony on Sep. 10, 2013, at the U.S. Attorney’s Office:
Rowlett Police Department $597,142.74
Duncanville Police Department 139,702.37
Mesquite Police Department 102,786.40
Irving Police Department 25,118.07
Dallas Police Department 22,454.05
Texas Joint Counterdrug Task Force 10,148.63The Alton Bay, New Hampshire Police Department also received $27,812.74 in forfeiture proceeds from this case.
The forfeiture funds are the result of the investigation and conviction of New Yorker David Allen Vogel. In the summer of 2010, Vogel was convicted by a jury in the Eastern District of Texas of conspiracy to distribute a controlled substance, conspiracy to commit money laundering, and two counts of money laundering. On Jan. 7, 2011, Vogel was sentenced to 240 months in federal prison and ordered to pay a money judgment in the amount of $24,743,000 and forfeiture of $4,376,471.39, which had already been seized from six separate bank accounts. These funds represent the final distribution of equitable sharing funds in this case. In addition to the funds noted above, these agencies have already received significant additional forfeiture funds in this case.
Vogel, the owner and operator of Madison Pain Clinic, conspired with others to operate an Internet-based pharmacy through which they distributed millions of hydrocodone pills and other controlled substances without a valid prescription. Vogel used proceeds from the illegal enterprise to purchase a multi-million dollar condominium in Trump Towers in New York City and rare coins, including a $36,000 penny. Vogel’s co-defendants were also convicted and received federal prison sentences.
This case was investigated by the U.S. Drug Enforcement Administration and the Internal Revenue Service – Criminal Investigation and prosecuted by Assistant U. S. Attorneys Stevan Buys, Maureen Smith and Kevin Collins.Little Eagle Man Sentenced for Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man convicted of Child Abuse was sentenced on September 9, 2013, by U.S. District Judge Charles B. Kornmann.
Tyson J. Keepseagle, age 26, was sentenced to 10 months of imprisonment, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Keepseagle was indicted by a federal grand jury in November of 2012. He pled guilty to Count I of the Indictment on May 20, 2013.
The conviction stems from an incident on or around March 2, 2012, when Keepseagle was living with the victim’ s mother in Little Eagle. The victim’s mother was cooking dinner while Keepseagle was downstairs with the children. When the victim’s mother went downstairs, she saw Keepseagle holding down the victim with one hand covering her mouth and his other hand containing a fist full of the child’s hair. The victim’s mother immediately leapt on Keepseagle to get him off the victim. Keepseagle then pinned the victim’s mother on the ground and began punching her.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy Morley prosecuted the case.
Keepseagle was immediately turned over to the custody of the U.S. Marshals Service.Lehigh County Man Charged with Receiving and Distributing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 33-year-old Bethlehem resident was indicted by a federal grand jury Tuesday on charges of receiving and distributing child pornography.
According to United States Attorney Peter J. Smith, the defendant, Stephen Puza III, allegedly downloaded and shared child pornography during July 2011 through September 23, 2011. Puza allegedly committed the offense while residing in Lehighton, Carbon County.
The charge against Puza resulted from an investigation by special agents and task force officers of the Federal Bureau of Investigation, the Pennsylvania State Police, and Lehighton Borough Police.
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 internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the mandatory minimum sentence is five years imprisonment. The maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Lebanon Man Sentenced to 20 Years for Coercing a Minor to Become a Sex SlaveRead the Press Release
Human Trafficking Rescue Project
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lebanon, Mo., man was sentenced in federal court today for using the Internet to groom and entice a minor girl into illegal sexual conduct that led to years of sadomasochistic abuse, and two of his customers were sentenced for their roles in the sex trafficking conspiracy.
“This courageous young woman, who confronted her tormentors in court today, is getting justice for the horrific suffering and enslavement she endured at the hands of these sexual sadists,” Dickinson said. “Today’s tough sentences should erase any lingering perception that the brutal sexual torture inflicted on this young victim was in any way consensual. Now the tables are turned, as she continues her healing process while they are confined in prison for many years to come.”
Edward Bagley, Sr., also known as “Master Ed,” 46, of Lebanon, Bradley Cook, also known as "PutHer2GoodUse," 34, of Kirkwood, Mo., and Dennis Henry, 53, of Wheatland, Mo., were sentenced in separate hearings before U.S. District Judge Dean Whipple. Bagley was sentenced to 20 years in federal prison without parole. Cook was sentenced to 20 years in federal prison without parole. Henry was sentenced to 10 years in federal prison without parole.
The court also ordered that $738,250 in total restitution must be paid to the victim. Each defendant is individually liable for $123,041, or one-sixth of the total amount. As part of the agreement obtained by the government, Cook was required to pay $123,041 in restitution at the time of his sentencing.
Following their prison terms, Bagley, Cook and Henry will be on supervised release for the rest of their lives. Among the terms of supervision ordered by the court, they must adhere to a 10:30 p.m. curfew and are prohibited from any contact with the victim, the government’s attorneys and the agents involved in the case.
Bagley, Cook and Henry are among six co-defendants who pleaded guilty in this case. The remaining three co-defendants are scheduled to be sentenced on Thursday, Sept. 12, 2013. This case marked the first time nationwide that the customers, or “Johns,” have been convicted under the Trafficking Victims Protection Act in a sex trafficking case in which the victim was an adult. This is also the first human trafficking conviction in which the customers were prosecuted in a case that involved an actual victim rather than an undercover sting operation.
On Jan. 15, 2013, Bagley pleaded guilty to enticing a minor into illegal sexual conduct and prostitution. Bagley met the female victim (identified in court documents as FV) in 2002, when she was 16 years old and dating his teenage son. FV visited his trailer residence in Lebanon on numerous occasions. During FV’s visits to Bagley’s residence, he showed her images and videos of pornography on the Internet and downloaded from the Internet, including images and videos of bondage and sadomasochistic conduct. Bagley admitted that he provided FV with controlled substances. He taught her about bondage and sadomasochistic activities. His wife, co-defendant Marilyn Bagley, 48, modeled stripper and bondage clothing for FV. The Bagleys told FV that she would love being a “slave” for him. Bagley began a sexual relationship with FV prior to her seventeenth birthday.
FV viewed Edward Bagley as her boyfriend and moved into the Bagleys’ residence in 2003. They provided FV her own room and clothes, and promised her a great life.
Over the course of the next six years, Edward Bagley executed sadistic acts of torture on FV, including sewing her vagina closed, whipping and flogging her body, penetrating her breasts with needles and skewers, suffocating her with plastic bags, strangling her with rope, locking her in a dog cage, and electrocuting FV’s sexual organs with devices which produced electrical voltage. Edward Bagley photographed and videotaped many of the acts he performed on her. FV would be punished if she did not do as instructed.
Cook pleaded guilty on Dec. 20, 2011, to participating in a conspiracy to commit sex trafficking by force, fraud or coercion. From 2006 to 2009, Cook watched the victim being sexually abused and tortured in live online sessions and as depicted in photos and videos that he downloaded from the Internet. Cook admitted that he traveled to Lebanon on multiple occasions during that time to engage in sessions of sexual acts and torture with the victim. In exchange, Cook paid the victim=s Amaster@ for these sessions with such items as computer hard drives that contained images and videos of bondage, domination, sadism and masochism, which he had downloaded from the Internet.
Cook also admitted he was aware of other men who engaged in sexual acts and torture with the victim. He witnessed the victim being whipped and locked in a dog cage, as well as being tied up and shocked with multiple electrical devices. Cook described the abuse suffered by the victim as the Amost extreme@ he had ever seen.
Henry, formerly the postmaster of Nevada, Mo., pleaded guilty on March 24, 2011, to participating in the conspiracy. Henry also pleaded guilty to transporting the victim across state lines for sexual activity.
Henry admitted that he engaged in sex with the victim, and participated in torture sessions with FV that would last for hours. Henry saw pictures of FV=s vagina sewn shut, which he was told was a form of punishment. Henry also admitted that he visited FV at a Lebanon strip club where she was forced to work.
Marilyn Bagley pleaded guilty on Dec. 6, 2012, to her role in the conspiracy. Marilyn Bagley admittedly knew that other individuals came to the residence to engage in sexual conduct and sadistic acts on FV. They provided bondage pornography, meat, cigarettes, and cash, among other items, in exchange for the sessions involving sexual conduct and sadistic acts on FV.
Under the terms of her binding plea agreement, Marilyn Bagley will receive a sentence of probation. The government stated in court that Marilyn Bagley is considered in a separate category from the other defendants in this case because she was a victim of extensive physical and emotional abuse for over 25 years prior to her criminal conduct and participation in the conspiracy. Her participation in the criminal conduct resulted in the abuse being redirected away from her and to the victim.
Co-defendant Michael Stokes, also known as “The Rodent,” 65, of Lebanon, pleaded guilty on Jan. 5, 2012, to participating in the conspiracy.
Stokes became familiar with FV in 2006 when he received pictures of her over the Internet in which she was naked with whip marks over her body. Stokes was told that the victim was a slave for “life” who was tortured for hours at a time and was required to do “everything and anything” she was told. After a few weeks of chatting online, the plea agreement says, a co-conspirator brought the victim to Stokes’ house so she could do a “demo” for him. When they arrived at Stokes’ residence, bringing a duffle bag of torture devices with them, FV was instructed to “put on a show for us.” FV was naked, wearing only dog collars and ankle collars with locks. Stokes was asked whether he wanted to have sex with her. Stokes said “yes” and he had sex with FV.
Stokes was stunned that “someone had that much control over someone” and “had never seen anything like it.”
Stokes began visiting the residence where FV was being held. During his first visit, he was shown a photo of FV’s vaginal opening sewn shut and told this was done to demonstrate “what was expected of her.” FV was present for these statements and remained silent. FV never talked back or spoke up. FV never offered herself to Stokes and only acted on command.
Stokes visited the residence eight to 12 times. During these visits, he would receive sexual acts or be allowed to watch or participate in torturing FV. When he visited he brought steaks, hamburgers, jackets, personalized playing cards, lighters, cigarettes, and cash. Among other things, he witnessed FV being tortured with a crank phone, with electricity shot through devices clamped to her vaginal and anal openings.
Stokes began assisting in promoting FV at the strip clubs. Stokes took photos of FV around to the clubs to promote her there. Stokes gave $1,000 so that FV could be taken for a sexual bondage photo shoot in California for Taboo magazine. Stokes then took a copy of the magazine to promote her at the clubs. The photos in Taboo magazine were extremely mild and did not depict any of the cruel sessions Stokes had witnessed at the residence.
In 2009, Stokes was warned that there was an FBI investigation involving his conduct with FV. Stokes went on his computer and deleted hundreds of photos, his contacts with other females online, pictures of FV that he saved, and destroyed his copies of Taboo magazine and the sexual devices that he had acquired.Under federal statutes, Stokes is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution.
Co-defendant James Noel, 47, of Springfield, pleaded guilty on Feb. 24, 2011, to participating in the conspiracy. Noel admitted that he was one of the customers who sexually abused and tortured FV. Noel watched the victim being tortured and sometimes operated torture devices himself beginning in 2006, when she was approximately 20 years old. For example, Noel knew that FV hated being electrocuted with a crank phone (which was wired inside FV=s vaginal and anal openings and to her toes), which he described as "extremely painful," but he used it on her anyway.
Under federal statutes, Noel is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution.
This case is being prosecuted by Assistant U.S. Attorneys Cynthia L. Cordes, Paul Becker and John Cowles with assistance from the Department of Justice Civil Rights Division's Human Trafficking Prosecution Unit. It was investigated by the FBI in conjunction with the Human Trafficking Rescue Project.Lebanon Man and Vice Lord Leader Convicted of Drug Conspiracy and Related Firearms ChargesRead the Press Release
Trial Results in Conviction of Last of 17 Defendants
Sterling Rivers a/k/a “little Real”26, of Lebanon, Tennessee was found guilty by a federal jury yesterday, of engaging in a conspiracy to distribute large quantities of crack cocaine and cocaine, as part of his involvement in a criminal street gang called the Unknown Vice Lords, announced David Rivera, Acting U. S. Attorney for the Middle District of Tennessee. Because the jury could not reach a decision on one count related to possessing a firearm during a drug crime, another trial is scheduled for November 19, 2013.
Rivers was indicted with 16 other individuals in September 2011 following a nearly two year investigation into a national street gang, the Vice Lords, operating in Wilson and Putnam County, Tennessee and beyond. Rivers fled following his indictment and was arrested in October 2011 as a fugitive in Texas.“This verdict is just another example of the U.S. Attorney’s Office and our law enforcement partners’ tireless commitment to combating criminal street gangs in the Middle Tennessee area,” said Acting U.S. Attorney David Rivera. “This and other recent convictions of gang members should send a clear and convincing message that violent gang activity in this district will be met with the necessary resources required to eliminate such activity and to hold those accountable who choose to inflict violence upon our communities.”
The verdict followed a two-week trial, during which Rivers represented himself. Proof at trial established that Rivers was engaged in organizing the Vice Lords Gang throughout the state of Tennessee and had been involved in an array of violent crime, including the robbery of another drug dealer and the shooting of another individual. Rivers is the last defendant to be tried in this case and faces a maximum penalty of life in prison.
Fifteen co-defendants have pleaded guilty and Monique “Money” Smith was tried and convicted in October 2012 and was sentenced to life, plus five years in prison.
This investigation was conducted by the FBI, the Lebanon Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Tennessee Bureau of Investigation and the Tennessee Highway Patrol. This case was prosecuted by Assistant United States Attorneys Braden H. Boucek and Brent Hannafan.
Lansing Home Health Business Owner Sentenced to Prison for Obstructing the Irs by Evading Payment and Falsifying Quarterly Tax Returns Totalling over $250,000.00Read the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick Miles announced today that George Adatsi, age 49, of Lansing, Michigan, was sentenced to eighteen months imprisonment after pleading guilty to a felony tax offense of obstructing the IRS. U.S. Attorney Miles was joined in the announcement by Special Agent in Charge Erick Martinez, Internal Revenue Service (IRS) Criminal Investigation Division.
At the sentencing hearing, U.S. States District Judge Janet T. Neff also imposed restitution of $204,406.00; a fine of $4,000.00; and one year of supervised release following imprisonment. Adatsi was the owner of two companies, Health Staffers, Inc. (HSI) and Health Staffers of Michigan, Inc. (HSMI) that employed nurses and home health aides who provided health care services in private homes and nursing homes. During the 2001 through 2003 tax years, Adatsi failed to pay over to the IRS the Social Security and Medicare (commonly referred to as “FICA”) taxes withheld from the employees of HSI. Adatsi admitted that he did not forward to the IRS $121,214 of FICA taxes withheld from his employees from 2001 through 2003 and that he later intentionally hid assets from the IRS to avoid payment of this amount.
Adatsi further admitted that from 2004 through 2008 he filed false Form 941 Quarterly Federal Tax Returns that under reported HSMI’s gross wages paid to its employees and, consequently, under reported both the income taxes and FICA taxes withheld from the HSMI employees. Adatsi acknowledged that the total of the underreported employment taxes was an additional $129,929.
“Adatsi grossly under reported the wages of his employees. He hid assets from the IRS and claimed he did not have the money to pay the taxes which he had already collected from his employees,” said Special Agent in Charge Erick Martinez. “The law is clear on the issue of employers’ responsibility to accurately report and forward withholding taxes and to deal honestly with the IRS.”
The investigation of this case was conducted by the IRS, and prosecuted by Assistant U.S. Attorney Ray Beckering.
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Kirkwood Woman Sentenced on Tax Fraud ChargesRead the Press Release
St. Louis, MO – NANCY CICERO was sentenced to 33 months in prison on multiple fraud charges for filing false tax returns, claiming over $3 million in refunds, for four years beginning in 2005.
According to testimony presented at trial, tax on certain bonds must be paid as interest accrues. Debt issuers such as banks, creditors and lenders provide a yearly form to their bond holders called a 1099-Original Issue Discount (OID). The form shows the OID income, as well as the federal income tax that was withheld on the OID income. To report tax liability on the interest earned, the bond holders submit the OID form to the IRS, along with income tax returns. According to testimony presented at trial, Cicero claimed false income tax refunds by submitting income tax returns to which she attached false and fictitious 1099-OID forms for the taxable years 2005-2008. On her 1040s for those years, Cicero claimed a refund amount based upon the false federal income tax withholdings that were reported on her false 1099-OIDs. In total, Cicero represented that financial institutions withheld over $3 million in taxes on her 1099-OID forms, thus claiming a refund of over $3 million."Today's sentence demonstrates our unwavering commitment to protecting the interests of law-abiding taxpayers," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "We will continue to investigate the criminals who engage in such brazen and fraudulent conduct, ensuring that the only citizens who receive tax refunds are those who are entitled to them."
Cicero, Kirkwood, MO, was convicted in May of four felony counts of filing false claims with the IRS. She appeared today for sentencing before United States District Judge John A. Ross.this case was investigated by Internal Revenue Service Criminal Investigation. Assistant United States Attorneys Dianna Collins and Reginald Harris prosecuted the case for the U.S. Attorney’s Office.
Joseph C. Kupfer Sentenced to Ten Years in Prison for Theft of Federal “Help America Vote Act” (Hava) Funds and Tax EvasionRead the Press Release
ALBUQUERQUE – This afternoon U.S. District Judge William P. Johnson sentenced Joseph C. Kupfer, 50, of Rio Rancho, N.M., to ten years in federal prison followed by three years of supervised release for his convictions for conspiracy, theft of government property and tax evasion. Kupfer also was ordered to pay $746,375 in restitution to the State of New Mexico and $288,339 in restitution to the IRS. Kupfer is to pay the restitution payment to the State of New Mexico jointly with co-defendant Armando C. Gutierrez, 65, of Corpus Christi, and the restitution payment to the IRS jointly with his wife and co-defendant Elizabeth D. Kupfer, 51. Kupfer also was ordered to forfeit $746,375 to the United States.
Kupfer’s sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, New Mexico Attorney General Gary K. King, Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation, and Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI.
This case was initiated in Dec. 2010, by the filing of a three-count indictment charging Kupfer and his wife with failing to report $768,333 in taxable income during tax years 2004 through 2006, and evading $286,175 in federal taxes. An eleven-count superseding indictment was filed in July 2011, which added Gutierrez as a defendant and five counts charging Kupfer and Gutierrez with conspiracy and theft of government property relating to federal HAVA funds administered by former New Mexico Secretary of State (NMSOS) Rebecca Vigil-Giron. The superseding indictment also charged Gutierrez with two counts of obstruction of justice relating to a federal audit and investigation into the misuse of federal HAVA funds and one count of laundering unlawfully obtained proceeds. At the time of the events described in the superseding indictment, Kupfer and Gutierrez were providing consulting services to the NMSOS under HAVA contracts, and Mrs. Kupfer was an employee of the New Mexico Attorney General’s Office (NMAGO) who had been detailed to work for the NMSOS.
The court severed the tax evasion counts from the other counts in the superseding indictment for purposes of trial, and scheduled separate trials for the Kupfers on the three tax evasion charges (the tax trial), and for Kupfer and Gutierrez on the conspiracy, theft, obstruction of justice and money laundering charges (the HAVA trial).
The tax trial began on Aug. 13, 2012 and ended on Aug. 17, 2012, when the jury returned a guilty verdict against the Kupfers on all three tax evasion charges. The evidence established that, during the years 2004 through 2006, Kupfer received income including federal HAVA funds, from Kupfer Consulting (KC), a business owned and operated by Kupfer, and the Kupfers reported income from KC in their joint personal tax returns. During those years, the Kupfers received $1,304,421 in revenue from KC but reported only $502,541 in their tax returns. By concealing approximately $768,333 in income, the Kupfers avoided paying taxes on that money.
The HAVA trial began on Jan. 22, 2012 and ended on Jan. 31, 2013, when the jury returned guilty verdicts against Kupfer and Gutierrez on the conspiracy and theft of government property charges, and against Gutierrez on the obstruction of justice and money laundering charges. The evidence established that, between April 2003 and Dec. 2006, the NMSOS administered almost $20 million in federal HAVA funds, which were designated for voter education, increasing voter registration, and meeting new standards for election administration and voting systems, through a number of contracts. The contracts included a multi-million dollar contract for voting-related advertising awarded to A. Gutierrez and Associates, Inc. (AGA), which was owned and operated by Gutierrez, and three small contracts for increasing voting accessibility for the disabled that were awarded to KC, Kupfer’s business.
According to the evidence, Gutierrez and Kupfer conspired to defraud the United States by stealing federal HAVA funds and converting the funds to their own use. Between Sept. 2004 and Oct. 2006, AGA received a total of $6,271,810 in federal HAVA funds from the State of New Mexico but Gutierrez submitted documentation supporting only $3,385,151 in services and costs, resulting in an overpayment of $2,500,483 to which AGA was not entitled. In addition to the three small contracts totaling $70,000 which were awarded to KC by the NMSOS, AGA made nine payments totaling $746,375 in federal HAVA funds to Kupfer between Oct. 2004 and Nov. 2006, which far exceeded the value of any work that Kupfer ever actually performed for AGA under the HAVA contract.
In early 2007, the Election Assistance Commission began an audit into the use of federal HAVA funds by the NMSOS. The AGA HAVA contract immediately became the primary focus of the audit because AGA could not provide documentation to support the federal HAVA funds AGA received. In an effort to provide documentation for the federal HAVA funds AGA received, AGA provided 187 fraudulent invoices totaling $1,137,000 that purported to represent payment to media vendors when in fact AGA never paid any vendors based on these invoices. Subsequent to the EAC audit and in response to federal grand jury subpoenas, AGA and KC submitted fraudulent invoices that purported to support the nine payments totaling $746,375 that KC received from AGA between Oct. 2004 and Nov. 2006. Three of these invoices sought payments in the aggregate amount of $236,605 for production of a poll worker training video that was actually produced by another subcontractor at the cost of $75,000.
“The sentence imposed on Joseph Kupfer concludes the prosecution of an important case that sends a powerful message to those who do business with the government: we will aggressively investigate and vigorously prosecute those who steal federal funds and dodge their civic obligation to pay their rightful share of taxes,” said Acting U.S. Attorney Steven C. Yarbrough. “The prosecutors and agents who handled the investigation and prosecution of this case deserve tremendous credit and our thanks for doing an outstanding job and ensuring that the Kupfers and Gutierrez were held responsible for their crimes.”
New Mexico Attorney General Gary King said, “I am very proud of our involvement in this case, especially the work that my investigators produced, which helped in the prosecution and conviction of Mr. Kupfer. This is another good example of how cooperation between our respective offices can result in justice being served.”
“Mr. Kupfer violated the public’s trust by misappropriating voter education funds and using the money to line his own pockets. In addition, he committed tax evasion by intentionally concealing over $750,000 of income. When you steal federal funds, cheat on your taxes, and take steps to conceal your crimes, prison is usually the end result,” stated IRS Criminal Investigation Special Agent in Charge Dawn Mertz.
“If you do business with the government and decide to steal from taxpayers, you better expect the FBI to come after you. In this case, two individuals sought to enrich themselves at the expense of a program designed to improve voting systems and voter access. I would like to congratulate the FBI Special Agents who worked so hard on this complex investigation, alongside their partners at the U.S. Attorney’s Office, IRS Criminal Investigation and the New Mexico Attorney General’s Office,” said FBI Special Agent in Charge Carol K.O. Lee.
On May 14, 2013, Mrs. Kupfer was sentenced to three years in prison followed by three years of supervised release for her tax evasion conviction. Gutierrez was sentenced on August 19, 2013 to ten years in federal prison followed by three years of supervised release for his convictions for conspiracy, theft of government property, obstruction of justice and money laundering. Gutierrez also was ordered to pay $2,500,483 in restitution to the State of New Mexico, including $746,375 which is to be paid jointly with Kupfer. He also was ordered to forfeit $2,500,483, including his interest in his Corpus Christi residence, to the United States.
The case was investigated by IRS Criminal Investigation and the Albuquerque office of the FBI, with assistance from the New Mexico Attorney General’s Office. It was prosecuted by Assistant U.S. Attorneys Tara C. Neda, Jeremy Peña and Cynthia L. Weisman.Johnson City Pharmacist Sentenced to Serve Five Years ProbationRead the Press Release
JOHNSON CITY, Tenn. – Thomas Patrick Rowan, 59, of Johnson City, was sentenced on September 11, 2013, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve five years on federal supervised probation and a fine of $2,500. Rowan also agreed to a $75,000 forfeiture as a result of his conviction.
Rowan was charged in an information in April 2013, and pleaded guilty on April 30, 2013, to one count of obtaining oxycodone, a Schedule II controlled substance, by fraud and one count of providing false or fraudulent information in reports concerning controlled substance inventories. Rowan was a pharmacist who owned and operated pharmacies in Johnson City and Fall Branch at the time of these offenses.
“Our office takes all cases involving oxycodone and other prescribed controlled substances very seriously. Prescription controlled substance abuse is an epidemic in east Tennessee and we work aggressively to ensure that the controlled substance laws are enforced,” stated U.S. Attorney William C. Killian.
The Federal Bureau of Investigation and the Drug Enforcement Administration Diversion Division were involved in this investigation. Assistant U.S. Attorneys M. Suzanne Kerney-Quillen and Helen C.T. Smith represented the United States.
Jemez Pueblo Man Pleads Guilty to Federal Second Degree Murder ChargeRead the Press Release
ALBUQUERQUE – Lucas Michael Ray Toledo, 25, a resident and enrolled member of Jemez Pueblo, pleaded guilty this morning to a second degree murder charge. Under the terms of his plea agreement, Toledo will be sentenced to a prison term between 28 years and 32 years followed by a term of supervised release to be determined by the court. The guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough and Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI.
Toledo was arrested on Sept. 29, 2010, on a criminal complaint alleging that he murdered Matthew Panana, 21, also a member of Jemez Pueblo. Toledo subsequently was indicted on that same charge in Oct. 2010. Proceedings in the case were delayed by competency proceedings.
According to court filings, Toledo murdered the victim in the early hours of Sept. 29, 2010, outside Toledo’s residence on Jemez Pueblo. Toledo acknowledged murdering the victim sometime after 1:30 a.m. after the victim repeatedly disrupted Toledo as he was attempting to sleep by knocking on Toledo’s bedroom window. In response to the victim’s disruptive behavior, Toledo went outside and attacked the victim, stabbing him repeatedly with a box-cutter razor and kitchen knife and beating him with a shovel.
During today’s plea hearing, Toledo pleaded guilty to a felony information charging him with second degree murder and admitted killing the victim by stabbing him with a knife and beating him with a shovel. Toledo has been in custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
The case was investigated by the Albuquerque office of the FBI with assistance from the Jemez Pueblo Police Department and is being prosecuted by Assistant U.S. Attorney Presiliano A. Torrez.
Individual Indicted and Arrested for Making False StatementsRead the Press Release
SAN JUAN, P.R. – Today, a Federal Grand Jury returned a one-count indictment charging Gabriel Osorio-Cotto of providing false information and hoaxes to the Puerto Rico 9-1-1 Emergency Services, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. Osorio-Cotto was arrested yesterday by agents from the Puerto Rico Police Department and the FBI.
Yesterday, September 10, at approximately 2:47 PM, a call was received by the PR 911 Center where an individual stated that an explosion would occur on a JetBlue flight at the Luis Muñoz Marín International Airport at 6pm. The call originated from a public phone booth at 2001 Americo Miranda. When special agents reported to the site they found that the business around the telephone booth had camera surveillance. The video was reviewed and it showed an individual making the call, who was later identified as Gabriel Osorio-Cotto. The airport operations were affected and the airport was screened for explosives due to this threat.
If convicted, defendant faces up to five years in prison, and fines up to $250,000.00. The case was investigated by the FBI and Police of Puerto and is being prosecuted by Assistant U.S. Attorney Marcela C. Mateo.Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Houston Woman Charged in Check Cashing SchemeRead the Press Release
HOUSTON – Doris Hayes, 36, of Houston, has been indicted for her role in a check cashing scheme in which she supplied false Social Security numbers to two banks in order to open up various accounts, announced United States Attorney Kenneth Magidson.
Hayes, currently in custody on unrelated state charges, is expected to make an initial appearance before a U.S. magistrate judge in the near future.
According to the superseding indictment, returned today, Hayes opened bank accounts at International Bank of Commerce and University Federal Credit Union using Social Security numbers that did not belong to her.
A previous related indictment charged Sandra Carrier, 57, of Houston, with taking part in a scheme in which she caused her deceased mother’s treasury checks from the Department of Veterans Affairs and Social Security Administration to be cashed after her mother had passed away. Some of those checks were cashed using the same bank accounts that Hayes opened with false Social Security numbers. Carrier has already pleaded guilty to charges contained in that indictment and was sentenced to 12 months and one day in prison by U.S. District Judge David Hittner on March 12, 2013.
She is charged in today’s superceding indictment with two counts of making a false statement for which she faces up to five years in prison on each as well as a possible $250,000 fine. She is further charged with one count of aggravated identity theft. If convicted on that charge, she faces a possible two-year sentence that must be served consecutively to any other sentence imposed.
This case is the result of a joint investigation involving multiple federal agencies including the Social Security Administration – Office of Inspector General and the Department of Veterans Affairs. Assistant U.S. Attorney Andrew Leuchtmann is prosecuting this case.
A defendant is presumed innocent unless and until convicted through due process of law.Houston Man Sentenced for $20 Million ‘Black Market Peso Exchange’ SchemeRead the Press Release
One of the leaders of a criminal conspiracy that laundered more than $20 million through “shell” business bank accounts was sentenced today to 151 months in prison.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
Willie Whitehurst, 45, of Houston, was sentenced by U.S. District Judge Lee H. Rosenthal of the Southern District of Texas. In January and February 2013, Whitehurst and co-conspirators Enrique Morales, Fulton Smith and Anthony Foster pleaded guilty to conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business. Another co-conspirator, Sarah Combs, also pleaded guilty to conspiracy to operate an unlicensed money transmitting business.
In August 2012, a federal grand jury in Houston indicted the five defendants for their parts in a large “Black Market Peso Exchange” scheme. From October 2009 to September 2011, the defendants placed U.S. currency gained through the sale of drugs in U.S. cities into bank accounts held in the names of the organization’s “shell” companies. The money was then transferred to different accounts in the U.S. and in Mexico. In exchange, pesos were transferred back to accounts owned by the organization’s clients.Morales was previously sentenced to 188 months in prison, and Foster received a sentence of 121 months in prison. Smith was sentenced to 30 months, while Combs was sentenced to 24 months in prison.
The case was investigated by the Drug Enforcement Administration and the Internal Revenue Service – Criminal Investigation Division. Assistant U.S. Attorney Ted Imperato of the Southern District of Texas and Trial Attorney Keith Liddle of the Money Laundering and Bank Integrity Unit of the Criminal Division’s Asset Forfeiture and Money Laundering Section prosecuted the case.
Holyoke Woman Sentenced for Defrauding MassHealthRead the Press Release
BOSTON – A Holyoke resident was sentenced in U.S. District Court in Springfield for defrauding MassHealth, by billing for personal care attendant services that were never provided.
U.S. District Judge Michael A. Ponsor sentenced Miosottis Gonzalez, 25, to two years of probation and ordered her to pay $64,000 in restitution. In April, Gonzalez pleaded guilty to conspiracy to commit health care fraud. Three other individuals involved in the conspiracy, included Gonzalez’s aunt and uncle, previously pleaded guilty and were sentenced earlier this month.
Gonzalez engaged in a scheme to defraud the state’s Personal Care Attendant (PCA) Program. The PCA Program, funded by MassHealth, the Commonwealth’s Medicaid Program, helps individuals with permanent or chronic disabilities keep their independence, stay in the community, and manage their own personal care. Gonzalez recruited friends to provide identification documents which were used to bill MassHealth for PCA services that were never provided. Gonzalez also signed and submitted false time sheets in her own name to obtain payment for services she never provided.
United States Attorney Carmen M. Ortiz and Susan J. Waddell, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement today. The case was investigated by HHS-OIG with the assistance of the Commonwealth of Massachusetts Auditor’s Office, Bureau of Special Investigations, and the Commonwealth of Massachusetts, Office of the Attorney General, Medicaid Fraud Division. It is being prosecuted by Assistant U.S. Attorney Karen L. Goodwin of Ortiz’s Springfield Branch Office.
Goodwin Announces California Man Sentenced to 7+ Years in $122 Million Extortion PlotRead the Press Release
Vivek Shah threatened to kill family members of seven wealthy extortion targets
BECKLEY, W.Va. - U.S. Attorney Booth Goodwin today announced that Vivek Shah, 26, of West Hollywood, Calif., was sentenced to 7 years and 3 months in federal prison for orchestrating a multimillion-dollar extortion scheme. Last year, Shah threatened to kill family members of seven prominent victims, including movie producer Harvey Weinstein, Groupon co-founder Eric Lefkofsky, and coal executive Chris Cline, unless his targets wired tens of millions of dollars into offshore bank accounts.
"Imagine how terrifying it would be to open the mail and find a threat to kill your spouse or your children," said U.S. Attorney Booth Goodwin. "This defendant carried out a carefully planned scheme designed to frighten his victims out of more than $120 million. It was an extraordinarily brazen crime, and I'm pleased, for the victims' sake, that we were able to put a stop to it so quickly."
Shah’s other victims included oil and gas billionaire Terry Pegula, from whom he demanded $34 million; Playtone film company co-owner Gary Goetzman, from whom he demanded $9.6 million; Ryan Kavanaugh, founder of Relativity Media, from whom Shah demanded $11.3 million; and Dannine Avara, daughter of a prominent Texas oil-industry executive, from whom Shah demanded $35 million.Shah demanded $4 million from Weinstein, $16 million from Lefkofsky and $13 million from Cline. His demands totaled more than $122 million.
Shah sent letters threatening specific family members of his victims by name and used language carefully designed to persuade his targets that his threats were serious.
Shah used various means to avoid detection during the scheme by creating false identities. He fraudulently opened financial accounts in his victims' names. Shah also made purchases using prepaid debit cards that he registered under aliases. To avoid being traced when he committed criminal acts using his computer, he sought out anonymous, public Internet hotspots; altered the address associated with the computer's network card; and routed his Internet communications through special servers that disguise users' identities. He also created numerous accounts with the U.S. Postal Service under false names.
Shah was arrested by FBI agents on August 10, 2012 in Schaumberg, Ill.
This investigation was conducted jointly by the Federal Bureau of Investigation’s Pittsburgh, Los Angeles, and Chicago divisions, and the United States Postal Inspection Service.
Counsel to the United States Attorney Steve Ruby handled the prosecution.
Click here to listen to an audio clip provided by U.S. Attorney Booth Goodwin
G.S. Electech Inc. Executive Indicted for Role in Bid Rigging and Price Fixing on Automobile Parts Installed<br /> in U.S. CarsRead the Press Release
A federal grand jury in Covington, Ky., has returned an indictment against G.S. Electech Inc. executive, Shingo Okuda for his role in an international conspiracy to fix prices and rig bids of auto parts used on antilock brake systems installed in U.S. cars, the Department of Justice announced today. Today’s charge is the first to be filed in Kentucky in the department’s ongoing investigation into anticompetitive conduct in the automotive parts industry.
The indictment, filed today in the U.S. District Court for the Eastern District of Kentucky, charges Okuda, a Japanese national, with engaging in a conspiracy to rig bids for, and to fix, stabilize, and maintain the prices of speed sensor wire assemblies, which are installed in automobiles with an antilock brake system (ABS), sold to Toyota Motor Corp. and Toyota Motor Engineering and Manufacturing North America Inc. (collectively Toyota) in the United States and elsewhere.
G.S. Electech Inc. manufactures, assembles and sells a variety of automotive electrical parts, including speed sensor wire assemblies. The speed sensor wire assemblies connect a sensor on each wheel to the ABS to instruct it when to engage.
According to the charge, Okuda and his co-conspirators carried out the conspiracy by, among other things, agreeing during meetings and discussions to coordinate bids and fix prices of automotive parts submitted to Toyota. According to the charge, Okuda’s involvement in the conspiracy lasted from at least as early as January 2003 until at least February 2010.
“ Today’s indictment marks the 16th executive to be charged in the Antitrust Division’s continuing investigation of price fixing in the auto parts industry,” said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division’s criminal enforcement program. “Holding individuals accountable for their actions is the surest way to deter executives from choosing to collude rather than to compete for business.”“Those who engage in price fixing, bid rigging and other fraudulent schemes harm the automotive industry by driving up costs for vehicle makers and buyers,” said John Robert Shoup, Acting Special Agent in Charge, FBI Detroit Division. “The FBI is committed to pursuing and prosecuting these individuals for their crimes.”
Okuda is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence for individuals of 10 years in prison and a criminal fine of $1 million. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Including Okuda, 11 companies and 16 executives have been charged in the Justice Department’s ongoing investigation into the automotive parts industry. To date, more than $874 million in criminal fines have been imposed and 14 individuals have been sentenced to pay criminal fines and to serve jail sentences ranging from a year and a day to two years each. One other executive has agreed to serve time in prison and is scheduled to be sentenced on Sept. 25, 2013.
In May 2012, G.S. Electech Inc. pleaded guilty and was sentenced to pay a $2.75 million criminal fine for its role in the conspiracy related to speed sensor wire assemblies.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the Antitrust Division’s National Criminal Enforcement Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323.
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Former St. Louis Police Officer Indicted for Assaulting Two Juveniles and One AdultRead the Press Release
A federal grand jury in St. Louis has indicted Stan Lee Stanback, 47, a police officer formerly with the Velda City Police Department, on charges related to the assaults of two juveniles and one adult on Sept.17, 2008.
Stanback is charged with three counts of using unreasonable force on the three victims listed in the indictment when he punched and struck each one of them. The first two counts allege that Stanback used a police baton to assault the victims. All three counts allege that Stanback’s actions resulted in injury to all of the victims.
The indictment also charges Stanback with making false statements to FBI agents when he intentionally lied, claiming that prior to his assaults on the victims, he was surrounded by 15 men in the parking lot of the Velda City Police Department and was forced to draw his gun during the encounter. The indictment alleges that this was not true because Stanback knew at the time he spoke with FBI agents that he had only been approached by three juveniles and one adult and that he did not draw his gun.
Stanback faces a statutory maximum penalty of 10 years in prison for each of the civil rights violations and five years in prison for the false statements charge.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the St. Louis Division of the Federal Bureau Investigation and is being prosecuted by Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Former School Committee Member, and Boy Scout Leader, Sentenced for Charges of Child Sexual ExploitationRead the Press Release
BOSTON – A Whitinsville lawyer, who was also a Boy Scout troop leader and part-time middle school instructor, was sentenced to 18 years in prison on child pornography charges.
On September 9, in U.S. District Court in Worcester, Judge Timothy S. Hillman sentenced Andrew Jonathan Myers, 34, to 220 months in prison and 10 years of supervised release. On June 12, 2013, Myers pleaded guilty to four counts of using the Internet to entice, persuade, or induce a minor to engage in unlawful sexual conduct and possessing child pornography. Pursuant to a plea agreement with the government, Myers faced a possible sentence of between 15 and 21 years in prison and 10 years of supervised release.
Between July 13 and July 23, 2012, Myers communicated with a 12-year-old Colorado boy, identified as Juvenile Victim #1 (JV-1), over the Internet, first via email, and then through the web video service, Skype. During the course of the communications with JV-1, Myers told JV-1 that he was attractive, directed JV-1 to websites where child pornography could be found, and offered to “find” JV-1 “a place to sleep” if he came to Massachusetts. Throughout the communications, Myers repeatedly solicited JV-1 to take off his clothes and masturbate over the Skype video streaming service.
On May 7, May 9 and June 28, 2012, Myers sent sexually explicit emails to three minors, identified as JV-2 (age 13), JV-3 (age 11), and JV-4 (age 14), in which the he proposed to perform oral sex on the minors. Myers had served as a substitute school teacher for JV-2 and JV-3, and had been the Troop leader for JV-4's scout troop.
A computer and an external hard drive seized from Myers’ residence at the time of his arrest contained in excess of 600 videos depicting child pornography including an electronic video recording of a Skype video chat between Myers and a minor identified as JV-5, a 13-year-old South Carolina resident, in which JV-5 is depicted engaging in sexually explicit conduct.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; District Attorney Joseph Early of Worcester County; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Chief Walter J. Worhol of the Northbridge Police Department; and Chief Kenny Powell of the Millbury Police Department, made the announcement.
This was a joint investigation that was initiated by the Larimer County, CO, Sheriff’s Office who discovered Myers’ alleged conduct and provided the information that led to both Myers’ identification and these federal charges. The case was prosecuted by Assistant U.S. Attorney Mark J. Grady of Ortiz’s Worcester Office.
Former Postal Employee, Michael Roig, Pleads Guilty to Embezzleing MailRead the Press Release
MICHAEL ROIG, age 36, a resident of Covington, pled guilty in federal court today before U.S. District Court Judge Susie Morgan to embezzlement of mail matter, announced U. S. Attorney Dana J. Boente.
According to the factual basis, on May 15, 2012, while working as a United States Postal Service letter carrier at a Metairie post office, ROIG removed a package addressed to a Rouses Supermarket from a delivery bin. ROIG knew from the package’s appearance that it contained postage stamps. Postal Service agents confronted ROIG after he opened the package, which contained over $600 in stamps. ROIG admitted to the agents that he intended to take the stamps.
ROIG faces a maximum sentence of five years in prison, a maximum fine of $250,000, and up to three years of supervised release following any term of imprisonment. Sentencing is scheduled for December 4, 2013.
The matter was investigated by the United States Postal Service-Office of Inspector General, and is being prosecuted by Assistant United States Attorney Chandra Menon.
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Former Orleans Parish Deputy, Gerard J. Hoffman, Jr., Sentenced in Bribery CaseRead the Press Release
GERARD J. HOFFMAN, JR., 59, a resident of Mandeville, Louisiana, was sentenced today to 5 years probation by U.S. District Judge Jane Triche Milazzo for conspiracy to commit bribery, announced U.S. Attorney Dana J. Boente. In addition to the term of probation, Judge Milazzo ordered HOFFMAN to pay a fine of $25,000 and a $100 special assessment.
According to court records, HOFFMAN, the former head of the maintenance department at the Orleans Parish Sheriff’s Office (“OPSO”), began receiving things of value from a contractor, identified as Businessman B in court filings, in exchange for a rigged bidding system employed to steer OPSO work to Businessman B. In particular, from 2007 through 2011, Businessman B would submit bids for OPSO work in the name of his respective company but, with the knowledge and participation of, among others, HOFFMAN, would also submit phony or fake bids for these same projects in the names of other local companies, in an effort to give the appearance of a competitive bidding process. In many cases, the phony bids would intentionally be higher than the bids from Businessman B and, consequently, the OPSO work would be awarded, with HOFFMAN’s participation and knowledge, to Businessman B.
In exchange for this rigged bidding process, according to court documents, HOFFMAN received several things of value from Businessman B. For example, from 2007 through 2011, HOFFMAN received a trailer, a storage container, and free maintenance and construction work at a house owned by HOFFMAN, all at no cost to him. In total, HOFFMAN received at least $5,000, but less than $10,000 in things of value from Businessman B in exchange for HOFFMAN’s official acts at the OPSO.
The case was investigated by special agents of the Federal Bureau of Investigation.
The case is being prosecuted by Assistant U. S. Attorneys Matt Chester and Jon Maestri.
Former Old Saybrook Resident Sentenced to Nearly Six Years in Prison for Operating Multiple Fraud SchemesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that PAUL E. BRENNAN, 45, formerly of Old Saybrook, Conn., and Phoenix, Ariz., was sentenced today by Senior United States District Judge Alfred V. Covello in Hartford to 71 months of imprisonment, followed by five years of supervised release, for operating multiple fraud schemes.
According to court documents and statements made in court, from approximately March 2009 to August 2011, BRENNAN convinced women with whom he was romantically involved, and other acquaintances, to cash checks for him at financial institutions knowing that the checks were drawn on closed or underfunded accounts and would be returned for nonpayment. BRENNAN also cashed, or had others cash for him, fraudulent checks at check cashing businesses in Connecticut.
Also, from approximately November 2010 to June 2011, BRENNAN defrauded individuals by pitching phony investment deals and soliciting money from victims for fraudulent business ventures. During the scheme, BRENNAN convinced one victim to give him more than $100,000 for property deals and stock market investments, and he convinced other victims to give him money for investments in fraudulently-operated businesses, including BC Property Management and B&D Powerwashing. BRENNAN also persuaded certain victims to grant him authorization to use their credit cards and lines of credit.
In total, BRENNAN’s fraud schemes victimized more than 10 individuals and caused more than $370,000 in losses to those victims. BRENNAN used much of the money he received from his victims to pay personal expenses.
BRENNAN has been detained since his arrest on February 27, 2013. On June 18, he waived his right to indictment and pleaded guilty to one count of bank fraud and one count of mail fraud.
BRENNAN’s criminal history dates to 1986, and includes more than 35 convictions for various state offenses, including including assault, weapons possession, trespass, check fraud, forgery, and larceny.
This matter was investigated by the Federal Bureau of Investigation, the Old Saybrook Police Department and the State’s Attorney for the Judicial District of New London. The case was prosecuted by Special Assistant United States Attorney Kerry L. Quinn.
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(203) 821-3722 [email protected]Former Leesburg Man Pleads Guilty to Oxycodone Conspiracy That Led to DeathRead the Press Release
ALEXANDRIA, Va. – George Washington Crane, V, 48, formerly of Leesburg, Va., pleaded guilty today to conspiracy to distribute oxycodone.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Michael L. Chapman, Sheriff of Loudon County, made the announcement after the plea was accepted by United States District Judge Liam O’Grady.
Crane was indicted on July 11, 2013, by a federal grand jury. He faces a maximum sentence of 20 years in prison when he is sentenced on December 20, 2013.
In a statement of facts filed with the plea agreement, Crane admitted to purchasing Oxycodone several times each week, between 2008 and 2011, from sources on the street in Washington, D.C. and Baltimore, Maryland. Crane then brought the Oxycodone to Leesburg, Virginia where he distributed the pills primarily to high school students and recent graduates. Crane sold Oxycodone from his residence and car to multiple customers daily.
According to the statement of facts, Crane distributed Oxycodone on August 7, 2010, to a conspirator who later provided it to William Huff, age 20. Huff died on August 8, 2010, as a result of injecting the Oxycodone that Crane distributed.
This case was investigated by FBI’s Washington Field Office and the Loudoun County Sheriff’s Office. Assistant United States Attorney Adam B. Schwartz is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Funeral Home Owner Pleads Guilty to Bank FraudRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Serrell Gayton, 55, of Rochester, N.Y., pleaded guilty before U.S. District Judge Charles J. Siragusa, to bank fraud. The charge carries a maximum penalty of 30 years in prison, a fine of $1,000,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that between December 15, 2011 and January 4, 2012, the defendant prepared false and fraudulent checks. As part of the scheme to defraud, Gayton and an associate deposited checks, made payable to the defendant’s business, Serenity Hills Funeral Chapel Inc., at Citizens Bank branches in Rochester. Checks totaling more than $17,000 were attempted to be deposited by the defendant and his associate, resulting in a loss to Citizens Bank of approximately $3,800.
Sentencing is scheduled for December 13, 2013 at 3:00 p.m. before Judge Siragusa.
The plea was the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast.Former Employee of Allstate Electrical Pleads Guilty to Embezzlement and Tax FraudRead the Press Release
Oklahoma City, Oklahoma – Renea I. Windham, of Oklahoma City, pled guilty in federal court today to making a forged security and filing a false tax return in connection with her embezzlement of more than $140,000 from a metro electrical contracting business, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Windham is the former bookkeeper at Allstate Electrical Contractors, Inc., in Oklahoma City. According to the Information filed in the case, Windham made and possessed a forged check from Allstate payable to her for $4,380.08. At today’s plea hearing, Windham admitted that she prepared that check to herself without Allstate’s permission, and caused the company’s accounting records to show the check was instead issued to a legitimate electrical company. Windham also admitted that she embezzled more than $140,000 from Allstate from 2010 to 2013. The Information also alleged that Windham submitted a false federal income tax return for tax year 2012 by failing to report substantial income. At today’s plea hearing, Windham admitted that she did not claim more than $60,000 of embezzled income from Allstate on her 2012 federal income tax return.
At sentencing, Windham faces up to ten years in federal prison and a fine up to $250,000 on the forged security charge and up to three years in federal prison and a fine up to $250,000.00 on the tax charge. She agreed in her plea agreement to pay restitution to Allstate in the amount of $143,057.10. She also agreed to pay restitution to the Internal Revenue Service in the amount of her federal income tax due, to be determined by the Court. United States District Judge Robin J. Cauthron will sentence Windham on December 11, 2013.
These charges are the result of an investigation conducted by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, and the United States Secret Service. The case is being prosecuted by Assistant U.S. Attorney Chris M. Stephens.
Former Court Reporter Sentenced to Prison Time for Charges Related to Obstruction of JusticeRead the Press Release
ABINGDON, VIRGINIA – United States Attorney Timothy J. Heaphy announced today that Ernest Julius Benko, 67, of Norton, Va., was sentenced yesterday in the United States District Court for the Western District of Virginia in Abingdon to 15 months incarceration following his earlier guilty pleas to charges related to the obstruction of a federal criminal investigation.
Benko had earlier entered a plea of guilty to one count of obstruction of an official proceeding and one count of conspiracy to cause false statements and obstruct an official proceeding.
According to evidence presented at his guilty plea hearing by Assistant United States Attorney Zachary T. Lee, between 2008 and 2013, Benko was employed as a private investigator, videographer, notary public, and a court reporter for the Circuit Court of Wise County, Virginia and the United States Bankruptcy Court for the Western District of Virginia.
During this time, the Federal Bureau of Investigation and Virginia State Police had an ongoing investigation regarding attorney Robert Stuart Collins’ involvement in the illegal possession and distribution of controlled substances. In May 2009, Benko was hired by Collins to record sworn statements from individuals cooperating in the FBI and Virginia State Police’s investigation in which the witnesses were told to falsely represent that Collins had no involvement in anything that was illegal or unethical.
These false statements were conducted in order to obstruct the criminal investigation into Collins. One of the witnesses, whose statement Benko recorded, was also told to falsely state that he had been threatened by an FBI agent in order to secure his cooperation in the FBI's investigation. At the time of the taking of these false sworn statements Benko was aware that Collins had a drug problem and had been involved in the illegal activity that was the subject of the criminal investigation. On September 13, 2012, Benko was interviewed by agents of the FBI and Virginia State Police. Benko falsely stated that he had no knowledge of Collins being involved in illicit drug use.
The investigation of this case was conducted by the Virginia State Police, Federal Bureau of Investigation, Wise County Commonwealth’s Attorney’s Office, and the Southwest Virginia Drug Task Force. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.
Former Candidate for DeKalb County Superior Court Pleads Guilty to Defrauding InvestorsRead the Press Release
ATLANTA - Michael Rothenberg, a former candidate for a seat on the DeKalb County Superior Court, pleaded guilty today to a charge of defrauding the owners of WinterHawk Energy and Development Corporation.
“This defendant stole from investors who trusted his judgment,” said United States Attorney Sally Quillian Yates. “His fraud is particularly egregious because he was involved in defrauding investors at the very time he was seeking to be elected as a DeKalb County Superior Court Judge, and because he used a portion of the illegal proceeds to fund his political campaign. Ultimately, his fraud scheme was uncovered, and his quest to be elected ended in failure.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Investment fraud schemes often have at their core individuals who appear very credible. These schemes often end with those individuals being revealed as greedy and uncompassionate for those devastated investors whose trust they betrayed. Today’s guilty plea will ensure that Mr. Rothenberg will be held accountable for his criminal actions.”
According to United States Attorney Yates, the charges and other information presented in court: Michael Rothenberg, 35, of DeKalb County, Ga., deceitfully persuaded the owners of WinterHawk Energy and Development Corporation (“WinterHawk”) into investing a total of $1.35 million. Rothenberg represented that the invested money would be placed in a trust account, controlled by Rothenberg, which would be used to fund the trading of notes by large financial institutions. These notes, according to Rothenberg, would be split into “tranches,” and a ten percent profit would be earned each time a note or “tranch” was traded. Rothenberg told the investors that the investment involved no risk.
In fact, no investment existed and Rothenberg used the money paid by WinterHawk to fund his political campaign for a seat on the DeKalb County Superior Court as well as to pay personal expenses. Rothenberg ultimately was unsuccessful in his bid for a judgeship. During the scheme, Rothenberg placated the investors’ concerns and lulled them into believing that the investment opportunity was real by emailing them fabricated bank statements, which made it appear as if the money they had invested remained in his trust account and that Rothenberg himself was wealthy. From time to time Rothenberg returned some of the money to the investors in response to their demands, and claimed falsely that he was making up for the shortfall by personally investing his own money. But Rothenberg did not invest his own money, and in fact spent the remaining proceeds – approximately $800,000 – without the investors’ knowledge or consent.
The charge of wire fraud in this case carries a maximum sentence of 20 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Sentencing is scheduled for November 18, 2013 at 10:00 a.m. before United States District Judge Steve C. Jones.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Steven D. Grimberg is prosecuting the case. The DeKalb County District Attorney’s Office has provided valuable assistance.
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.
Former Bergen County, N.J., Democratic Chairman Indicted on Racketeering ChargesRead the Press Release
Kickbacks, Bribery and Extortion Alleged
NEWARK, N.J. – A federal grand jury indicted Joseph A. Ferriero, the former chairman of the Bergen County Democratic Organization (BCDO), today, charging him with a racketeering scheme involving kickbacks paid to a public official, soliciting and accepting bribes as a party official and extortion, U.S. Attorney Paul J. Fishman announced.
The indictment charges Ferriero, 56, with conducting the BCDO’s affairs through a pattern of racketeering activity. He is also charged with conspiring to promote bribery and distribute bribe proceeds and to commit mail and wire fraud; as well as with one count each of violating the Travel Act and the mail and wire fraud statutes.
Ferriero is expected to make his initial court appearance before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court on a date to be determined.
“According to the indictment, Joseph Ferriero ran a political organization as a racketeering enterprise, abusing power for profit,” said U.S. Attorney Fishman. “Today’s charges expose years of peddled influence, from grants to building projects to software contracts. Battling political corruption is a constant priority for this office; we will continue to demand honest public service for the people of New Jersey.”
“The conduct alleged in today’s indictment is another unfortunate example of someone misusing their position in our political system for personal gain,” said FBI Special Agent in Charge Aaron T. Ford. “Such conduct tarnishes our political system. Today’s indictment reaffirms the FBI’s commitment to combat public corruption in New Jersey, and serves as a stark reminder that those who seek to violate public trust will be held accountable.”
According to the indictment returned today:
Ferriero served as the chairman of the BCDO from 1998 until January 2009. From December 2001 until October 2008, he conducted the BCDO’s affairs through a pattern of racketeering activity involving three schemes: the Governmental Grants Consulting (GGC) kickback scheme, the retail and entertainment project bribery and extortion scheme and the SJC Consulting (SJC) bribery scheme.
Ferriero offered Dennis J. Oury, 63, of Naples, Fla., the then-incoming borough attorney in Bergenfield, N.J., a concealed ownership interest in GGC in exchange for Oury’s agreement to exercise official action and discretion in GGC’s favor in Bergenfield. Oury accepted the offer and used his official position to cause GGC to be hired in Bergenfield. A portion of GGC’s proceeds from the borough were ultimately “kicked back” to Oury by Ferriero.
The conduct in this scheme was the subject of an earlier indictment and superseding indictment against Oury and Ferriero. On Sept. 29, 2009, Oury pleaded guilty before U.S. District Judge Stanley R. Chesler to Count One of the superseding indictment, charging him with conspiring with Ferriero to defraud Bergenfield through the use of the mails, and Count 11, charging him with willful failure to file a tax return. Oury was sentenced by Judge Chesler on Nov. 29, 2012, to three years of probation.
On Oct. 29, 2009, a federal jury found Ferriero guilty of one count of conspiracy and two counts of mail fraud related to the same scheme, but Judge Chesler dismissed the superseding indictment prior to Ferriero’s sentencing after the U.S. Supreme Court’s decision in Skilling v. United States.
Ferriero engaged in the retail and entertainment project bribery and extortion scheme by soliciting payments totaling $1.7 million from a Virginia-based real estate investment trust (the “Virginia REIT”) that, between 2002 and 2006, was involved in an attempt to develop land owned by the N.J. Sports & Exposition Authority (NJSEA) in Bergen County.
In 2002, the Virginia REIT agreed to secretly pay a consulting company operated by Ferriero and two of his then-law partners $35,000 a month in exchange for Ferriero’s agreement not to publicly oppose – nor to cause members of the BCDO or other public officials with whom he had influence to publicly oppose – the Virginia REIT’s proposal to the NJSEA. The payments were also in exchange for Ferriero’s assistance in obtaining endorsements, public support and other official action and inaction in favor of the Virginia REIT from members of the BCDO and other public officials with whom he had influence.
The indictment also alleges that Ferriero accepted bribes in his capacity as BCDO chairman in the course of the SJC bribery scheme. Ferriero agreed with a Nutley, N.J.-based attorney and software developer that Ferriero would recommend and provide a favorable opinion of the software developer and his companies to various public officials in Bergen County with whom Ferriero had influence. The software developer agreed to pay Ferriero one-quarter to one-third of the gross receipts from any contract obtained as a result of Ferriero’s efforts. Ferriero’s financial interest in the software developer’s public contracts was completely hidden using two shell companies, one of which was created and incorporated in Nevada for the sole purpose of contracting with and accepting payments from another shell company controlled by the software developer.
The racketeering charge carries a maximum potential penalty of 20 years in prison; the conspiracy charge carries a maximum potential penalty of five years in prison; the Travel Act charge carries a maximum penalty of five years in prison; and the mail and wire fraud charges each carry a maximum potential penalty of 20 years in prison. Each count of the indictment also carries a maximum $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Ford in Newark, for their work in the investigation.
The government is represented by Counsel to the U.S. Attorney Rachael A. Honig. Criminal investigators from the U.S. Attorney’s Office led the investigation in this case.
The charges and allegations contained in the indictment are merely accusations and the defendant is considered innocent unless and until proven guilty.
13-363Defense counsel: Michael Baldassare and Jennifer Mara, Esqs., Newark
Ferriero Indictment
Former Bergen County, N.J., Democratic Chairman Indicted on Racketeering ChargesRead the Press Release
Kickbacks, Bribery and Extortion Alleged
NEWARK, N.J. – A federal grand jury indicted Joseph A. Ferriero, the former chairman of the Bergen County Democratic Organization (BCDO), today, charging him with a racketeering scheme involving kickbacks paid to a public official, soliciting and accepting bribes as a party official and extortion, U.S. Attorney Paul J. Fishman announced.
The indictment charges Ferriero, 56, with conducting the BCDO’s affairs through a pattern of racketeering activity. He is also charged with conspiring to promote bribery and distribute bribe proceeds and to commit mail and wire fraud; as well as with one count each of violating the Travel Act and the mail and wire fraud statutes.
Ferriero is expected to make his initial court appearance before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court on a date to be determined.
“According to the indictment, Joseph Ferriero ran a political organization as a racketeering enterprise, abusing power for profit,” said U.S. Attorney Fishman. “Today’s charges expose years of peddled influence, from grants to building projects to software contracts. Battling political corruption is a constant priority for this office; we will continue to demand honest public service for the people of New Jersey.”
“The conduct alleged in today’s indictment is another unfortunate example of someone misusing their position in our political system for personal gain,” said FBI Special Agent in Charge Aaron T. Ford. “Such conduct tarnishes our political system. Today’s indictment reaffirms the FBI’s commitment to combat public corruption in New Jersey, and serves as a stark reminder that those who seek to violate public trust will be held accountable.”
According to the indictment returned today:
Ferriero served as the chairman of the BCDO from 1998 until January 2009. From December 2001 until October 2008, he conducted the BCDO’s affairs through a pattern of racketeering activity involving three schemes: the Governmental Grants Consulting (GGC) kickback scheme, the retail and entertainment project bribery and extortion scheme and the SJC Consulting (SJC) bribery scheme.
Ferriero offered Dennis J. Oury, 63, of Naples, Fla., the then-incoming borough attorney in Bergenfield, N.J., a concealed ownership interest in GGC in exchange for Oury’s agreement to exercise official action and discretion in GGC’s favor in Bergenfield. Oury accepted the offer and used his official position to cause GGC to be hired in Bergenfield. A portion of GGC’s proceeds from the borough were ultimately “kicked back” to Oury by Ferriero.
The conduct in this scheme was the subject of an earlier indictment and superseding indictment against Oury and Ferriero. On Sept. 29, 2009, Oury pleaded guilty before U.S. District Judge Stanley R. Chesler to Count One of the superseding indictment, charging him with conspiring with Ferriero to defraud Bergenfield through the use of the mails, and Count 11, charging him with willful failure to file a tax return. Oury was sentenced by Judge Chesler on Nov. 29, 2012, to three years of probation.
On Oct. 29, 2009, a federal jury found Ferriero guilty of one count of conspiracy and two counts of mail fraud related to the same scheme, but Judge Chesler dismissed the superseding indictment prior to Ferriero’s sentencing after the U.S. Supreme Court’s decision in Skilling v. United States.
Ferriero engaged in the retail and entertainment project bribery and extortion scheme by soliciting payments totaling $1.7 million from a Virginia-based real estate investment trust (the “Virginia REIT”) that, between 2002 and 2006, was involved in an attempt to develop land owned by the N.J. Sports & Exposition Authority (NJSEA) in Bergen County.
In 2002, the Virginia REIT agreed to secretly pay a consulting company operated by Ferriero and two of his then-law partners $35,000 a month in exchange for Ferriero’s agreement not to publicly oppose – nor to cause members of the BCDO or other public officials with whom he had influence to publicly oppose – the Virginia REIT’s proposal to the NJSEA. The payments were also in exchange for Ferriero’s assistance in obtaining endorsements, public support and other official action and inaction in favor of the Virginia REIT from members of the BCDO and other public officials with whom he had influence.
The indictment also alleges that Ferriero accepted bribes in his capacity as BCDO chairman in the course of the SJC bribery scheme. Ferriero agreed with a Nutley, N.J.-based attorney and software developer that Ferriero would recommend and provide a favorable opinion of the software developer and his companies to various public officials in Bergen County with whom Ferriero had influence. The software developer agreed to pay Ferriero one-quarter to one-third of the gross receipts from any contract obtained as a result of Ferriero’s efforts. Ferriero’s financial interest in the software developer’s public contracts was completely hidden using two shell companies, one of which was created and incorporated in Nevada for the sole purpose of contracting with and accepting payments from another shell company controlled by the software developer.
The racketeering charge carries a maximum potential penalty of 20 years in prison; the conspiracy charge carries a maximum potential penalty of five years in prison; the Travel Act charge carries a maximum penalty of five years in prison; and the mail and wire fraud charges each carry a maximum potential penalty of 20 years in prison. Each count of the indictment also carries a maximum $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Ford in Newark, for their work in the investigation.
The government is represented by Counsel to the U.S. Attorney Rachael A. Honig. Criminal investigators from the U.S. Attorney’s Office led the investigation in this case.
The charges and allegations contained in the indictment are merely accusations and the defendant is considered innocent unless and until proven guilty.
13-363Defense counsel: Michael Baldassare and Jennifer Mara, Esqs., Newark
Ferriero Indictment
Former Bank Employee Sentenced to Probation with Home Detention for Stealing Customer's Account InformationRead the Press Release
PITTSBURGH, Pa. - A resident of McKees Rocks, Pa., has been sentenced in federal court to probation for a term of three years with six months home detention to include electronic monitoring on her conviction of identity theft, United States Attorney David J. Hickton announced today.
United States District Judge Donetta W. Ambrose imposed the sentence on Sonya Smith, 26.
According to the information presented to the court, Smith, a former customer service representative for PNC Bank, provided PNC customer account information to another person which was later used to open fraudulent credit accounts.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force conducted the investigation that led to the prosecution in this case. The WPFCTF was established in February 1995 as a collaborative, multiagency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort is the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Former Background Investigator for Federal Government Sentenced for Making A False StatementRead the Press Release
WASHINGTON – Ramon S. Davila, 59, a former background investigator under contract with the U.S. Office of Personnel Management (OPM), was sentenced today to four years of probation, during which time he must serve 60 days in community detention and perform 200 hours of community service, on a charge stemming from his falsification of work on background investigations of federal employees and contractors.
The sentence was announced by U.S. Attorney Ronald C. Machen Jr. and Patrick E. McFarland, Inspector General for the Office of Personnel Management.Davila, of Homestead, Fla. and Fredericksted, St. Croix, U.S. Virgin Islands, pled guilty in June 2013 in the U.S. District Court for the District of Columbia to making a false statement. He was sentenced by the Honorable Amy Berman Jackson, who ordered that his detention be served in a residential re-entry program. In addition, as part of his plea agreement, Davila must pay $79,468 in restitution to the federal government.
According to a statement of offense submitted to the Court, Davila worked for three contractors that did federal background investigations on behalf of OPM’s Federal Investigative Services.
Between August 2006 and August 2007, in multiple Reports of Investigations on background investigations, Davila represented that he had interviewed a source or reviewed a record regarding the subject of the background investigation. In fact, he had not conducted the interviews or obtained the records of interest. His reports were utilized and relied upon by the agencies requesting the background investigations to determine whether the subjects were suitable for positions having access to classified information, for positions impacting national security, or for receiving or retaining security clearances.
Davila’s false representations have required Federal Investigative Services to reopen and rework numerous background investigations that were assigned to him during the time period of his falsifications, at an estimated cost of at least $79,468 to the U.S. government.
Federal Investigative Services has a robust integrity assurance program which utilizes a variety of methods to ensure the accuracy of reported information. The falsification of investigative case work by the defendant was detected through the program.
This is one of numerous cases prosecuted by the U.S. Attorney’s Office for the District of Columbia since 2008 involving false representations by background investigators and record checkers working on federal background investigations. In addition to Davila, 16 other background investigators and two record checkers have been convicted of charges.
Federal Investigative Services, through its workforce of approximately 7,600, including 6,100 field investigators, is responsible for conducting background investigations for numerous federal agencies and their contractors, on individuals either employed by or seeking employment with those agencies or contractors. Federal Investigative Services conducted more than 2.1 million investigations during the 2012 fiscal year. More than 770,000 of these investigations involved applicants for access or continued access to classified information.
In performing background investigations, the investigators conduct interviews of individuals who have information about the person who is the subject of the review. In addition, the investigators seek out, obtain, and review documentary evidence, such as employment records, to verify and corroborate information provided by either the subject of the background investigation or by persons interviewed during the investigation. After conducting interviews and obtaining documentary evidence, the investigators prepare a Report of Investigation containing the results of the interviews and document reviews, and electronically submit the material to OPM in Washington, D.C. OPM then provides a copy of the investigative file to the requesting agency, which can use the information to determine an individual’s eligibility for employment or a security clearance.
In announcing the sentence, U.S. Attorney Machen and Inspector General McFarland praised the efforts of Special Agents Nunzio Orlando, OPM, Office of the Inspector General, and Philip Kroop and David Newcomer, OPM, Federal Investigative Services. They also acknowledged the work of Paralegal Specialist Diane Hayes and Legal Interns Lindsey Frye, Julie Jacocks and Brian Nistler. Finally, they expressed appreciation to Assistant U.S. Attorneys Ellen Chubin Epstein and Maia L. Miller, and former Assistant U.S. Attorney Mary Chris Dobbie, who investigated and prosecuted this matter.
13-312Five Indicted for Allegedly Bribing A Gsa Official to Obtain Federal ContractsRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned five indictments charging the owners of companies with bribing a General Services Administration (GSA) official to obtain contracts to provide painting and other maintenance services at federal facilities. All the indictments were filed under seal and the last one was unsealed yesterday upon the arrest of the defendant.The individuals charged in the indictments are:
Carl Roberts, age 48, of Clinton, Maryland; Ronald Wilkinson, age 60, of Brandywine, Maryland; Robert W. Hales, a/k/a Bobby Hales, age 52, of Nanjemoy, Maryland; Darold Patterson, age 72, of Deerwood, Maryland; and
Daryl Kitchen, age 59, of Upper Marlboro, Maryland.The Roberts indictment was returned on July 15, 2013; the Wilkinson and Hales indictments were returned on August 12, 2013; and the Patterson and Kitchen indictments were returned on August 26, 2013.
The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Inspector General Brian D. Miller, General Services Administration, Office of Inspector General; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
GSA Inspector General Brian D. Miller said, “We will continue to pursue contractors who line their own pockets by bribing corrupt officials at the expense of the American taxpayers.”
According to the indictments, Roberts owned four general construction and moving companies that he operated out of his residence in Clinton; Wilkinson owned a painting company located in Brandywine; Hales owned and operated two painting companies located in Nanjemoy; Patterson was a co-owner and operator of a general contracting company located in Rockville, Maryland; and Kitchen owned a general contracting company located in Upper Marlboro.
Each indictment alleges that the defendants paid bribes to a building manager who at the time was cooperating with the government, in exchange for the building manager awarding GSA service contracts to the defendants’ companies. GSA building managers were authorized to retain private contractors to complete maintenance projects on behalf of GSA and were further authorized to pay for maintenance projects that cost $3,000 or less using their government issued GSA credit cards. According to the indictments, each of the contracts awarded to the defendants either cost less than $3,000, or were charged by two separate invoices in order to keep the cost under $3,000.
Specifically, the indictments allege that: Roberts paid bribes totaling $1,300 in exchange for six contracts to Roberts’ companies, for which he was paid $8,724; Wilkinson paid bribes totaling $650 in exchange for two contracts, for which Wilkinson was paid $3,075; Hales paid bribes totaling $400 in exchange for two jobs, for which Hales was paid $3,300; that Patterson paid bribes totaling $1,800 in exchange for two contracts for which Patterson was paid $5,635; and that Kitchen paid bribes totaling $950 in exchange for four contracts for which Kitchen was paid $6,522.67.
The defendants face a maximum sentence of 15 years in prison for bribery. Roberts had an initial appearance yesterday. Hales, Wilkinson and Kitchen had initial appearances on September 5, 2013 and Patterson had an initial appearance on September 6, 2013. All of the defendants were released under the supervision of U.S. Pretrial Services.
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.
A sixth contractor, Andre Michael Lipford, age 43, of Washington, D.C., previously pleaded guilty to paying $750 in bribes in exchange for two jobs for his company, for which Lipford was paid $6,200. Lipford was sentenced to five months in prison, followed by five months of home detention as part of one year supervised release.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein thanked GSA Office of Inspector General and FBI for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Kristi N. O’Malley and Kelly O’Connell Hayes, who are prosecuting the case.
Final Defendant Sentenced to Federal Prison in Connection with Undocumented Immigrant Smuggling Incident That Resulted in 3 DeathsRead the Press Release
In San Antonio this afternoon, 26–year-old Jose Abram Lopez-Lozano, a resident of Michoacàn, Mexico, was sentenced to 36 months in federal prison in connection with an undocumented alien smuggling incident which resulted in three deaths announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Janice Ayala.
On March 27, 2013, Lopez-Lozano pleaded guilty smuggling undocumented aliens for financial gain. On the same day, his co-defendant, 32-year-old Javier Silva-Morales, a resident of Monterrey, Mexico, pleaded guilty to one count of smuggling undocumented aliens resulting in death. By pleading guilty, both admitted to transporting smuggled undocumented aliens on February 6, 2013, from Falfurrias, TX, to Houston when a Wilson County Sheriff’s deputy attempted to conduct a traffic stop near Poth, TX. A vehicle chase ensued. After losing sight of the vehicle, deputies subsequently discovered several individuals at the end of an open field standing on top of what appeared to be the same vehicle which was now submerged under water. A total of 13 individuals, including both defendants, were apprehended by sheriff’s deputies with assistance from Texas Department of Public Safety troopers. HSI agents later determined that the 13 were in the United States without proper documentation and placed them under arrest. A Texas Department of Public Safety dive team dispatched to the scene recovered three bodies from the bottom of the water near the vehicle.
On July 7, 2013, U.S. District Judge Xavier Rodriguez sentenced Silva-Morales to 150 months in federal prison.
This case was investigated by HSI, the Texas Department of Public Safety and the Wilson County Sheriff’s Office. Special Assistant United States Attorney Christina Playton prosecuted this case on behalf of the Government.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,Indiana - TheUnited States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictments on September 11, 2013:
Jovon C. Harvey, 44, of Fort Wayne, Indiana, was charged with two counts of attempted tax evasion for tax years 2007 and 2008, three counts of failure to file a tax return for tax years 2007 through 2009 and one count of wire fraud.These charges were filed as the result of an investigation by the Internal Revenue Service.This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony Geller.
TheUnitedStatesAttorney'sOfficeemphasizedthatanIndictmentismerelyanallegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed willbedetermined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Eighth V-not Gang Member Pleads Guilty to Rico ConspiracyRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York, announces that TITUS NICKENS, age 30, of Syracuse, pled guilty this morning in U.S. District Court in Syracuse to an indictment which charged him and ten others with conspiring to exploit their membership in the V-NOT Gang to engage in a pattern of racketeering activity which included acts of murder, attempted murder, drug trafficking, and robbery. NICKENS is the eighth defendant to plead guilty in this case. The case against three co-defendants remains pending.
At sentencing, NICKENS faces up to life imprisonment, a $250,000 fine, and three years of supervised release following any period of incarceration.
The Indictment to which NICKENS pled alleges that from at least 2003 through May 2012 members of the V-Not Gang: (1) maintained a specific geographic territory within the City of Syracuse in which only gang members can sell crack cocaine and marijuana; (2) protected that exclusive crack distribution territory with violence; (3) obtained drugs from various suppliers; (4) projected a very violent attitude and responded to violence with violence in order to preserve their stature in the gang community; (5) used graffiti, hand signs, and tributes on their clothing to slain gang members to signify their gang membership; (6) used criteria such as a willingness to use violence, ability to sell drugs, and familial connections to determine membership; and (7) routinely carried and used firearms in connection with their gang activity.
There are multiple acts of violence and drug distribution set forth in the Indictment, including 1 murder, 10 other shootings, 8 other acts of gun possession, and 18 acts of crack distribution and/or possession with intent to distribute crack. With respect to the murder, the Indictment includes allegations that on November 26, 2010, gang member Kahari Smith shot and killed Kihary Blue on Interstate 81 in downtown Syracuse as part of an ongoing feud between the V-Not and Bricktown gangs.
Trial for the remaining three defendants - Kahari Smith, Habakkuk Nickens and Nathan King - is set to commence on October 1, 2013, in Syracuse.
This prosecution resulted from a long-term investigation conducted by the Syracuse Gang Violence Task Force, which is comprised of agents and detectives from the following agencies: United States Department of Justice, Bureau of Alcohol, Tobacco, and Firearms (Syracuse Office), the Syracuse Police Department, the Onondaga County Sheriff's Department, the New York State Police, and the United States Marshals Service. The Onondaga County District Attorney’s Office and the Drug Enforcement Administration - Syracuse office, also assisted in the investigation.
Further questions or inquiries may be directed to Assistant U.S. Attorney John M. Katko, who is prosecuting the case, at (315) 374-3605.
Eight Defendants Plead Guilty in Los Angeles in Armenian Power Gang CaseRead the Press Release
Four members and associates of the Armenian Power gang and four other individuals pleaded guilty late yesterday to charges relating to the activities of the Armenian Power criminal enterprise, including racketeering conspiracy, bank fraud, aggravated identity theft, drug-trafficking and illegal possession of firearms.
The guilty pleas were announced today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office.
The following defendants pleaded guilty before U.S. District Judge Dean D. Pregerson in the Central District of California:
• Karo Yerkanyan, aka “Guilty,” 32, of Tujunga, Calif., pleaded guilty to racketeering conspiracy, bank fraud, aggravated identity theft, conspiracy to possess with intent to distribute marijuana and felon-in-possession of a firearm; • Arman Tangabekyan, aka “Spito” and “Thick Neck,” 34, of Encino, Calif., pleaded guilty to racketeering conspiracy, bank fraud and aggravated identity theft; • Artur Pembejian, aka “Cham,” 36, of Burbank, Calif., pleaded guilty to racketeering conspiracy; • Raymond Tarverdyan, aka “Rye,” 35, of Montrose, Calif., pleaded guilty to racketeering conspiracy and bank fraud; • Simon Antonyan, aka “Simo,” 38, of Hollywood, Calif., pleaded guilty to aggravated identity theft; • Khachatur Arakelyan, aka “Khecho,” 39, of Glendale, Calif., pleaded guilty to aggravated identity theft; • Vartenie Ananian, 29, of Tujunga, pleaded guilty to bank fraud; and
• Adam Davoodian, 32, of Glendale, Calif., pleaded guilty to conspiracy to possess with intent to distribute marijuana.
The defendants who pleaded guilty yesterday were among 70 individuals charged in a 140-count indictment in July 2011 for criminal activities associated with the Armenian Power gang. The indictment accused 29 defendants, including four of those who pleaded guilty yesterday, of participation in the Armenian Power RICO conspiracy. The RICO conspiracy charge alleges a host of illegal activities, many of which involved sophisticated fraudulent schemes of identity theft, bank fraud, credit card skimming, manufacturing counterfeit checks and laundering criminal proceeds, often electronically. In addition, defendants were involved in a variety of violent crimes, such as extortion, kidnapping and firearms offenses. Among the schemes charged in the racketeering indictment is a bank fraud and identity theft scheme that victimized hundreds of customers of 99 Cents Only Stores throughout Southern California. Through the scheme, defendants caused more than $2 million in losses when they secretly installed sophisticated “skimming” devices to steal customer debit card account information at cash registers, and then used the skimmed information to create counterfeit debit cards to steal money from victims’ bank accounts.The eight defendants who pleaded guilty yesterday played various roles in the activities of the Armenian Power gang, including participating in bank fraud, drug distribution, access device fraud, identity theft and illegal firearm possession.
Yerkanyan, a member of the Armenian Power conspiracy, participated in a bank fraud scheme that obtained the personal identifying information and account information of victims. He and his co-conspirators used the information to open fraudulent bank accounts, loans and lines of credit at HSBC Bank and Bank of America without the knowledge of the victims. Tangabekyan, a member of the Armenian Power conspiracy, participated in a bank fraud scheme by obtaining personal information and account information for victims and then obtaining or transferring over $475,000 in funds.
Yerkanyan also participated, along with Davoodian, in a scheme to steal approximately 207 pounds of marijuana, worth approximately $450,000, from another drug distributor.
Pembejian, a member of the Armenian Power conspiracy, abetted the illegal possession of a firearm by a leader of the Armenian Power gang, Mher Darbinyan.
Tarverdyan, an Armenian Power member, and Antonyan, Arakelyan and Ananian participated in the scheme to install secret “skimming” devices at the 99 Cents Only Stores in order to obtain victims’ account information.
According to court documents, the Armenian Power street gang formed in the East Hollywood district of Los Angeles in the 1980s. The gang’s membership consisted primarily of individuals of Armenian descent, as well as of other countries within the former Soviet bloc. The Armenian Power has been designated under California state law as a criminal street gang and is believed to have over 250 documented members, as well as hundreds of associates. According to court documents, Armenian Power members and associates regularly carry out violent criminal acts, including murders, attempted murders, kidnappings, robberies, extortions, and witness intimidation in order to enrich its members and associates and preserve and enhance the power of the criminal enterprise.
The defendants are scheduled to be sentenced beginning on Nov. 25, 2013. Yerkanyan faces a maximum penalty of 102 years in prison. Tangabekyan faces a maximum penalty of 52 years in prison. Tarverdyan faces a maximum penalty of 50 years in prison. Ananian faces a maximum penalty of 30 years in prison. Pembejian and Davoodian each face a maximum penalty of 20 years in prison. And Antonyan and Arakelyan each face a maximum penalty of two years in prison.
Fifty-one defendants have previously pleaded guilty for their roles in the activities of the Armenian Power gang.
The case is being prosecuted by Assistant U.S. Attorneys Martin Estrada, Elizabeth Yang and Stephen Wolfe of the Central District of California and Trial Attorney Andrew Creighton of the Criminal Division’s Organized Crime and Gang Section. The case was investigated by the Eurasian Organized Crime Task Force, which is comprised of the FBI, the U.S. Secret Service, the Los Angeles Police Department, the Glendale Police Department, the Burbank Police Department, the Internal Revenue Service and U.S. Immigration and Customs Enforcement – Homeland Security Investigations.Eight Defendants Plead Guilty in Armenian Power RICO CaseRead the Press Release
LOS ANGELES – Four members and associates of the Armenian Power gang, as well as four others, pleaded guilty late Monday to charges related to the activities of the Armenian Power criminal enterprise, including racketeering conspiracy, bank fraud, aggravated identity theft, drug-trafficking and illegal possession of firearms.
The eight who pleaded guilty yesterday are among 70 people who were charged two years ago in a 140-count indictment that outlined the criminal activities of the Armenian Power gang. The indictment accused 29 defendants, including four of those who pleaded guilty yesterday, of participation in the Armenian Power racketeering conspiracy. The RICO count in the indictment alleges a host of illegal activities, including sophisticated fraud schemes involving identity theft, bank fraud, credit card skimming, counterfeit checks and money laundering. The indictment also alleged a variety of violent crimes, such as extortion, kidnapping and firearms offenses.
The racketeering indictment alleges a bank fraud and identity theft scheme that victimized hundreds of customers of 99 Cents Only Stores across Southern California. Through the scheme, defendants caused more than $2 million in losses when they secretly installed sophisticated “skimming” devices to steal customer debit card account information at cash registers, and then used the skimmed information to create counterfeit debit cards that were used to steal money from victims’ bank accounts.
The eight defendants who pleaded guilty yesterday before United States District Judge Dean D. Pregerson are: Karo Yerkanyan, also known as “Guilty,” 32, of Tujunga, who pleaded guilty to racketeering conspiracy, bank fraud, aggravated identity theft, conspiracy to possess with the intent to distribute marijuana, and felon in possession of a firearm;
Arman Tangabekyan, aka “Spito and “Thick Neck,” 34, of Encino, who pleaded guilty to racketeering conspiracy, bank fraud and aggravated identity theft;
Artur Pembejian, aka “Cham,” 36, of Burbank, who pleaded guilty to racketeering conspiracy;
Raymond Tarverdyan, aka “Rye,” 35, of Montrose, who pleaded guilty to racketeering conspiracy and bank fraud;
Simon Antonyan, aka “Simo,” 38, of Hollywood, who pleaded guilty to aggravated identity theft;
Khachatur Arakelyan, aka “Khecho,” 39, of Glendale, who pleaded guilty to aggravated identity theft;
Vartenie Ananian, 29, of Tujunga, who pleaded guilty to bank fraud; and
Adam Davoodian, 32, of Glendale, who pleaded guilty to conspiracy to possess with intent to distribute marijuana.
The eight defendants who pleaded guilty yesterday played various roles in the activities of the Armenian Power gang, including participating in bank fraud, drug distribution, access device fraud, identity theft and illegal firearm possession.
Yerkanyan, a member of the Armenian Power conspiracy, participated in a bank fraud scheme that obtained the personal identifying information and account information of victims. He and his co-conspirators used the information to open fraudulent bank accounts, loans and lines of credit at HSBC Bank and Bank of America without the knowledge of the victims. Yerkanyan also participated, along with Davoodian, in a scheme to steal approximately 207 pounds of marijuana, worth approximately $450,000, from another drug distributor.
Tangabekyan, another member of the Armenian Power conspiracy, participated in a bank fraud scheme by obtaining personal information and account information for victims and then obtaining or transferring over $475,000 in funds.
Pembejian, a member of the Armenian Power conspiracy, abetted the illegal possession of a firearm by a leader of the Armenian Power gang, Mher Darbinyan.
Tarverdyan, an Armenian Power member – along with Antonyan, Arakelyan and Ananian – participated in the scheme to secretly install the skimming devices at the 99 Cents Only Stores.
According to court documents, the Armenian Power street gang formed in the East Hollywood district of Los Angeles in the 1980s. The gang’s membership consisted primarily of individuals of Armenian descent, as well as of other countries within the former Soviet bloc. The Armenian Power has been designated under California state law as a criminal street gang and is believed to have over 250 documented members, as well as hundreds of associates. According to court documents, Armenian Power members and associates regularly carry out violent criminal acts, including murders, attempted murders, kidnappings, robberies, extortions, and witness intimidation in order to enrich its members and associates and preserve and enhance the power of the criminal enterprise.
The defendants who pleaded guilty this week are scheduled to be sentenced by Judge Pregerson beginning on November 25. At sentencing, Yerkanyan faces a maximum penalty of 102 years in prison. Tangabekyan faces a maximum penalty of 52 years in prison. Tarverdyan faces a maximum penalty of 50 years in prison. Ananian faces a maximum penalty of 30 years in prison. Pembejian and Davoodian each face a maximum penalty of 20 years in prison. And Antonyan and Arakelyan each face a maximum penalty of two years in prison.
Fifty-one other defendants have previously pleaded guilty in the racketeering case.
This case is being prosecuted by the United States Attorney’s Office in Los Angeles and the Department of Justice’s Organized Crime and Gang Section.
The case was investigated by the Eurasian Organized Crime Task Force, which is comprised of the Federal Bureau of Investigation, the United States Secret Service, the Los Angeles Police Department, the Glendale Police Department, the Burbank Police Department, the Internal Revenue Service - Criminal Investigation, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
In addition to the racketeering indictment targeting Armenian Power, federal authorities in 2011 obtained a second indictment that was filed in Orange County. The case charged 22 defendants (two of whom were also charged in the racketeering indictment). Similar to some of the schemes alleged in the racketeering indictment, the Orange County case alleges that AP members, working in conjunction with members of African-American street gangs, engaged in a bank fraud scheme that targeted elderly victims and caused losses of at least $10 million. All of the defendants charged in that case have been convicted, with two of them already receiving sentences of 25 years in federal prison.
Release No. 13-114
East St. Louis Man Sentenced to Prison for Possession of A Firearm by A Convicted FelonRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that an East St. Louis, Illinois, man was sentenced on September 9, 2013, to a prison term in federal court for possession of a firearm by a convicted felon.
Leon Johnson, 24, was sentenced in federal court in East St. Louis to 48 months in prison, to be followed by 3 years of supervised release, a $100 special assessment, and a fine of $200, following his plea of guilty, on May 20, 2013, to an Indictment charging him with Possession of a firearm by a Convicted Felon. The charge relates to an incident that occurred on June 5, 2012, in East St. Louis, Illinois, when law enforcement agents conducted a search of a residence pursuant to an arrest warrant. When agents proceeded to the basement of the residence, they observed Johnson lying on the couch. As the agents approached Johnson, they stepped on a fully loaded semiautomatic firearm, underneath some clothing and within one foot of Johnson. Johnson was previously convicted of aggravated unlawful use of a weapon on March 2, 2010 in St. Clair County, Illinois. The sentencing judge also ordered forfeiture of the firearm.
The 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. The WAVE Task Force receives financial support through the Department of Justice’s Project Safe Neighborhoods (PSN) initiative, a nationwide federal program which endeavors to address gun-related violence.
The case was investigated by members of the WAVE Task Force, the United States Marshals Service, the Illinois State Police, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Special Assistant United States Attorney Jungmin Lee.
East St. Louis Man Sentenced to Prison for Possession of A Firearm by A Convicted FelonRead the Press Release
Jonathan Spearman, 37, of East St. Louis, IL, was sentenced on September 9, 2013, in federal court in East St. Louis on one count of being a felon in possession of a firearm, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Spearman was sentenced to 37 months in prison, to be followed by 2 years of supervised release, a $100 special assessment, and a fine of $200. Spearman had previously pled guilty on April 4, 2013, to an Indictment charging him with Possession of a firearm by a Convicted Felon. The charge relates to an incident that occurred on December 29, 2012, in East St. Louis, Illinois, when an East. St. Louis police officer found a firearm in Spearman’s vehicle. Spearman was previously convicted of unlawful possession with intent to distribute cannabis on June 27, 2012 and of unlawful possession of a controlled substance on July 17, 2002, both in St. Clair County, Illinois. The sentencing judge also ordered forfeiture of the firearm.
The case was investigated by members of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the East St. Louis Police Department. The case was prosecuted by Special Assistant United States Attorney Jungmin Lee.
EOIR Headquarters Announces New 20530 Zip CodeRead the Press Release
Beginning on Oct. 1, 2013, all mail addressed to the Executive Office for Immigration Review’s (EOIR) Headquarters in Falls Church, VA, will be processed through a different mail processing facility. This facility change requires that EOIR use a new zip code. The street address of 5107 Leesburg Pike, Falls Church, VA, will remain the same, but the zip code will change from 22041 to 20530. The new mailing address is:
Department of Justice
Executive Office for Immigration Review
5107 Leesburg Pike
Falls Church, VA 20530-0001Mail and filings for the Office of the Chief Administrative Hearing Officer should be addressed to:
Office of the Chief Administrative Hearing Officer
5107 Leesburg Pike, Suite 2519
Falls Church, VA 20530-0001The Board of Immigration Appeals will no longer maintain a Post Office Box and will only accept mail sent to its street address. All Board filings and correspondence should be addressed to:
Board of Immigration Appeals
Office of the Chief Clerk
5107 Leesburg Pike, Suite 2000
Falls Church, VA 20530-0001Mail addressed with the zip code 22041 after Oct. 1, 2013, may result in delayed delivery to all Headquarters EOIR offices.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration Review