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10 September 2013
Man Sentenced on Crack Cocaine ConspiracyRead the Press Release
On September 10, 2013, Percy C. Jefferson, 35, of Pembrook, Illinois, was sentenced in United States District Court in Benton on an indictment charging conspiracy to distribute crack cocaine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Jefferson, who had previously pled guilty to the crack cocaine conspiracy was sentenced to 240 months in prison, to be followed by 10 years of supervised release, and fined $300. The offense occurred between February 2003 and April 27, 2006, in Jackson and Jefferson Counties. Jefferson had been a fugitive until September 12, 2012, when he was arrested by members of the Great Lakes Regional Fugitive Task Force. Evidence at the plea and sentencing hearings established that Jefferson was involved with others in the distribution of crack cocaine in the Murphysboro area. At sentencing, the district court found that Jefferson was responsible for the distribution of 6 kilograms of crack cocaine. Eight co-defendants have previously been sentenced to prison terms ranging from 120 months - 288 months for their role in the crack cocaine conspiracy.
The investigation was part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation and was conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, Drug Enforcement Administration, United States Marshals Service, and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The case was prosecuted by Assistant United States Attorney Amanda A. Robertson.
Leader of Nationwide Cocaine Trafficking Organization Pleads GuiltyRead the Press Release
NORFOLK, Va. – Luis Alberto Navarro, 32, of Tucson, Az., pleaded guilty today to conspiring to distribute cocaine.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration’s Washington Field Division, and Royce E. Curtin, Special Agent in Charge of the Federal Bureau of Investigation’s Norfolk Office, made the announcement after the plea was accepted by United States District Judge Arenda L. Wright Allen. Navarro was indicted on June 5, 2013 by a federal grand jury on charges of conspiring to distribute cocaine, as well as distribution and possession of cocaine. Navarro faces a maximum penalty of Life imprisonment when he is sentenced on December 13, 2013.
In a statement of facts filed with the plea agreement, Navarro admitted to his involvement in a large-scale cocaine distribution ring from 2006 to the present. While Navarro operated the Tucson, Arizona, hub of the organization, the group had a nationwide network of distribution points, including locations in Indiana, California, New York, Pennsylvania, and here in Tidewater. Navarro recruited, supervised, and managed couriers and other members to transport and distribute cocaine and proceeds from the distribution of cocaine throughout the United States. Along with his co-conspirators, Navarro would hide the cocaine both inside the lining of coolers and inert, hollowed-out fire extinguishers in order to avoid detection during transportation.
This case was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation and is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation dubbed Fire & Ice.
Assistant United States Attorneys V. Kathleen Dougherty and Kevin M. Comstock are 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.Lancaster Man Faces up to 20 Years in Federal Prison for Transporting and Shipping Child PornographyRead the Press Release
DALLAS — Meliton Torres, 31, of Lancaster, Texas, pleaded guilty this morning, before U.S. Magistrate Judge Paul D. Stickney, to one count of transporting and shipping child pornography. He faces a maximum statutory sentence of not less than five or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Torres, who will remain on bond, is scheduled to be sentenced on December 18, 2013, by U.S. District Judge Ed Kinkeade. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea documents filed in the case, Torres admitted using the Internet and file-sharing software to share and transmit images and video files of minors engaged in sexually explicit conduct. In March 2012, an officer with the Dallas Police Department’s Internet Crimes Against Children (ICAC) Unit, working online in an undercover capacity, downloaded images and videos from Torres’s shared files. On March 16, 2012, the Dallas Police Department executed a search warrant at Torres’s residence and seized computers and computer media, which were then analyzed by the North Texas Regional Computer Forensics Lab. More than 200 images and videos of child pornography were on the seized media. Of those, 23 images and 18 videos depicted victims who have been identified.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the Dallas Police Department’s ICAC and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Kirtland, N.M., Man Pleads Guilty to Federal Sexual Assault ChargeRead the Press Release
ALBUQUERQUE – Hareldo Horse, 31, an enrolled member of the Navajo Nation who resides in Kirtland, N.M., pleaded guilty this morning to an indictment charging him with sexual assault under a plea agreement with the U.S. Attorney’s Office.
Horse was arrested on March 11, 2013, on an indictment charging him with sexually assaulting a woman in a location within the Navajo Indian Reservation on Oct. 20, 2012. He has been in federal custody since that time. During his plea hearing this morning, Horse pleaded guilty to the indictment and admitted inappropriately touching the victim’s genitals at a time when the victim was physically in capable of declining to participate in the sexual act.
Horse remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Horse faces a maximum penalty of life imprisonment. Horse also will be required to register as a sex offender.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.KC Man Sentenced to Life in Prison for Child Sex Trafficking, Producing Child PornRead the Press Release
Human Trafficking Rescue Project
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for child sex trafficking and producing child pornography, which was discovered during an investigation into an extortion and blackmail scheme.
Corey M. McKinney, also known as “Chef FireFlame Corey,” 37, of Kansas City, was sentenced by U.S. District Judge Greg Kays to life in federal prison without parole. This is the first human trafficking case prosecuted in the Western District of Missouri that has resulted in a life sentence.
On Jan. 16, 2013, McKinney pleaded guilty during the second day of his trial. McKinney admitted that he had sexually exploited a child victim, identified in court documents as “CV,” on numerous occasions since she was 14 years old. McKinney, who was the legal guardian of CV, admitted that he used computers and video equipment to record sexual activity between himself and CV. McKinney also admitted that he caused CV to engage in prostitution as part of an extortion and blackmail scheme.
On March 24, 2011, McKinney was hiding in the bedroom closet while CV was having sex with a man identified in court documents as “John Doe.” John Doe had just met CV, whom he believed to be 17 years old, on Facebook the day before. McKinney secretly recorded the sexual encounter on his cell phone and on a nearby computer.
John Doe returned to the apartment the next day to have sex again. McKinney burst into the room, asking John Doe if he knew how much trouble he could get into because his “sister” was only 16 years old. John Doe did not know that the girl was actually 16 years old, or that McKinney had recorded the earlier illicit encounter. He did not know that the 16-year-old girl was not actually McKinney’s sister, but rather was a former neighbor that McKinney himself – a 34-year-old man at the time, a few years older than John Doe – had been exploiting sexually.
After demanding $500 in exchange for not exposing John Doe to his family, friends, employer, or the authorities, McKinney made John Doe go with him to a nearby ATM to get some form of this payment. John Doe was only able to pay $100 at that time and McKinney demanded that he pay the balance in the next few days.
After this encounter, John Doe received a flurry of text messages from McKinney, who made threats and demanded money. McKinney claimed he sent the video file to a friend who worked at a local news agency. He also attempted to confront John Doe by arriving unannounced at his home. After numerous texts and an attempted in-face confrontation, John Doe approached the authorities and advised them of the extortion attempts. The text message threats from McKinney continued, and soon John Doe learned that McKinney was posting information about him and his wife on his Facebook page. Eventually, an exchange was arranged (through the direction of the Kansas City Police Department) to pay the remainder of the money in exchange for a USB drive with the video on it.
On April 7, 2011, McKinney was arrested at DeVry University in Kansas City, Mo. (where he was a student) after he exchanged a USB drive containing the video for money that he had been demanding from John Doe. Evidence uncovered during the investigation included various videos and images constituting child pornography with McKinney engaged in sexual activity with the same child victim. When investigators searched the minor’s cell phone, they found several sexually explicit photos of McKinney and the minor as well as sexually explicit photos of John Doe and the minor.
McKinney admitted that while he was incarcerated after his arrest he called the child victim dozens of times in repeated efforts to get her to recant her prior statements and testimony and persuade her to submit a statement on his behalf in the hopes of getting the charges against him dismissed.
This case was prosecuted by Assistant U.S. Attorneys Patrick D. Daly and Brian P. Casey. It was investigated by the Kansas City, Mo., Police Department and the FBI in conjunction with the Human Trafficking Rescue Project.Iowa Couple and Nevada CPA Indicted on Charges of Conspiring to Defraud the IRSRead the Press Release
LAS VEGAS, Nev. - A couple from Iowa and a Nevada accountant were charged today with conspiring to defraud the IRS of over $700,000 through a scheme in which they allegedly used nominee corporations and nominee bank accounts to hide their income and other assets, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Darlene Taylor McCord and James Bert McCord, of Iowa City, Iowa, and Wendell Leroy Waite, of Las Vegas, are charged with one count of conspiracy to defraud the United States. Waite is also charged with one count of income tax evasion and four counts of aiding in the preparation and filing of false and fraudulent federal tax returns. Darlene and James McCord are also charged with four counts of making and subscribing false and fraudulent federal individual and corporate tax returns, one count of making a false financial condition statement, and nine counts of attempting to evade or defeat the payment of their federal taxes, penalties and interest.
The defendants are scheduled to make initial appearances before a federal magistrate judge in Las Vegas on Thursday, Sept. 19, 2013, at 3:00 p.m. If convicted, they face up to five years in prison and a $250,000 fine on the conspiracy and tax evasion charges, and up to three years in prison and a $250,000 fine on the false or fraudulent tax return charges.
According to the indictment, Darlene and James McCord were the owner of several Nevada corporations, TOB Management, Inc. Que 1, Inc., and HTR Group, Inc. Waite was a licensed Certified Public Accountant in Nevada, California, and Utah, who resided and worked in Nevada.
On June 23, 2003, the McCords allegedly owed the IRS approximately $197,420 in personal income taxes, and owed an additional IRS Trust Fund Recovery Penalty of approximately $547,788. From approximately May 2004 through February 2008, the McCords received personal income of over $2.7 million. Waite was associated with the Asset Protection Group, Inc., (APG) whose primarily function was to offer services to individuals who were trying to hide their assets from creditors, including the IRS, through the use of nominee corporations, nominee bank checking accounts, and “friendly liens” designed to create the illusion that a person’s assets were encumbered by liens. Beginning in about November 2004, the McCords deposited about $2.7 million into an APG bank escrow account and/or into one of their corporate accounts, allegedly for the purpose of hiding the money from the IRS. In about February 2005, APG allegedly referred the McCords to Waite for accounting and tax purposes and over the next two years, Waite filed multiple fraudulent federal tax returns for the McCord’s and their nominee corporations concealing their true income and assets.
The case is being investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney J. Gregory Damm.Houston Mom and Son Donut Shop Owners Charged with Witness TamperingRead the Press Release
HOUSTON – Kim Hout Lor, 66, and Bun Vireak Long, 19, have been taken into custody on charges of tampering with witnesses in a pending official proceeding, announced United States Attorney Kenneth Magidson today. Lor is also charged with making false statements.
The indictment, returned Aug. 20, 2013, was unsealed upon their arrests this morning. They are expected to make an initial appearance before U.S. Magistrate Judge George Hanks this afternoon, but potentially as early as 10:00 a.m. this morning.
According to allegations, the mother and son operated a donut shop in Porter called Pat’s Donuts, Kolaches & Tacos which had been under an investigation by the Department of Labor (DOL)-Wage and Hour Division for allegedly not properly compensating its work force.
Lor allegedly withheld information from investigators about undocumented aliens under her employment, the total number of employees she employed as well as the number of hours her employees worked, according to the indictment. Additionally, Lor and Long allegedly contacted witnesses and undocumented aliens they employed during the pending investigation to intimidate, threaten or corruptly persuade them in an effort to influence or prevent their testimony to DOL investigators.
If convicted of the witness tampering charges, Lor and Long face a possible 20 years in federal prison as well as a possible $250,000 fine. Additionally, Lor could face another five years if convicted of making false statements and another $250,000 fine.
The case is being investigated by the FBI and DOL-Office of Inspector General and is being prosecuted by Assistant U.S. Attorneys Celia Moyer and Joseph Magliolo.An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Guilty Pleas Entered in Connection with String of Hobbs Act Robberies in Southeastern New MexicoRead the Press Release
ALBUQUERQUE – Rance Williams, 23, and Maurice Williams, 35, both of Carlsbad, N.M., entered guilty pleas this afternoon in federal court in Las Cruces to violating the Hobbs Act by robbing businesses engaged in interstate commerce. The guilty pleas were announced by Acting U.S. Attorney Steven C. Yarbrough, 5th Judicial District Attorney Janetta Hicks, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, Chief Daniel Fierro of the Carlsbad Police Department, Chief Don Raley of the Artesia Police Department, and Chief Chris McCall of the Hobbs Police Department.
Rance Williams, Maurice Williams and four other Carlsbad residents, Bennie Juarez, 27, Logan Magby, 19, Mario Muro, 23, and Tyler Williams, 19, were charged with violations of the Hobbs Act in a criminal complaint filed on May 29, 2013. The criminal complaint charged the six men, acting in groups, with robbing the following five commercial businesses in southeastern New Mexico between Nov. 2012 and Jan. 2013:
- The Family Dollar located at 403 W. Quay Street in Artesia, N.M., by Bennie Juarez and Maurice Williams on Nov. 15, 2012.
- The Shop-N-Go located at 22212 W. Lea Street in Carlsbad by Bennie Juarez and Rance Williams on Nov. 28, 2012.
- The Family Dollar located at 901 W. Mermod Street in Carlsbad by Bennie Juarez and Maurice Williams on Dec. 2, 2012.
- The Dollar General located at 730 N. Dal Paso in Hobbs, N.M., by Bennie Juarez, Rance Williams and Tyler Williams on Dec. 9, 2012.
- The Domino’s Pizza located at 302 S. 1st Street in Artesia by Bennie Juarez, Mario Muro, Logan Magby and Tyler Williams on Jan. 6, 2013.
The criminal complaint alleged that each of the robberies was committed by perpetrators who wore masks or covered their faces with bandanas and brandished firearms at the store employees.
During today’s proceedings, Rance Williams entered a guilty plea to a two-count felony information charging him with conspiracy to rob the Shop-N-Go in Carlsbad on Nov. 28, 2012, and conspiracy to rob the Dollar General in Carlsbad on Dec. 2, 2012, under a plea agreement with the U.S. Attorney’s Office. Maurice Williams entered a guilty plea to a two-count felony information charging him with conspiracy to rob the Family Dollar in Artesia on Nov. 15, 2012, and conspiracy to rob the Family Dollar in Carlsbad on Dec. 2, 2012, without the benefit of a plea agreement. At sentencing, Rance Williams and Maurice Williams each face a maximum penalty of 20 years in prison on each count of conviction. The two men were remanded into custody after entering their guilty plea and will be detained pending their sentencing hearings, which have yet to be scheduled.
Two other men, Juarez and Magby, previously entered guilty pleas under plea agreements with the U.S. Attorney’s Office. Juarez entered a guilty plea on Aug. 20, 2013, to a felony information charging him with five counts of conspiracy to violate the Hobbs Act by robbing each of the five businesses numerated above. Juarez was remanded into custody after entering his guilty plea. Magby entered a guilty plea on Sept. 3, 2013, to a one-count felony information charging him with conspiracy to rob the Domino’s Pizza in Artesia on Jan. 6, 2013. Juarez and Magby each face a maximum penalty of 20 years in prison for each count of conviction; their sentencing hearings have yet to be scheduled.
Muro and Tyler Williams have entered not guilty pleas. The charges against them are merely accusations and they are presumed innocent unless they are found guilty beyond a reasonable doubt by a court of law. Muro is scheduled for a change of plea hearing on Sept. 13, 2013, and Tyler Williams is pending trial, which has not yet been scheduled.
These cases were brought as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
These cases were investigated by the Roswell office of the FBI, Carlsbad Police Department, Artesia Police Department and Hobbs Police Department, with assistance from the 5th Judicial District Attorney’s Office. The cases are being prosecuted by Assistant U.S. Attorneys Luis A. Martinez and Edwin Garreth Winstead III of the U.S. Attorney’s Las Cruces Branch Office.
Goodwin Announces Former Massey Executive Sentenced to 42 Months in Prison for Federal Mine Safety ViolationsRead the Press Release
Longtime Massey division president is highest-ranking official convicted in ongoing federal investigation; Sentence is one year above the top of federal advisory guidelines range
BECKLEY, W.Va. – United States Attorney Booth Goodwin today announced that a longtime Massey Energy Company executive was sentenced to 42 months in prison followed by 3 years of supervised release for two federal crimes in connection with an ongoing investigation of practices at Massey. David Hughart, 54, of Crab Orchard, West Virginia, is the former president of Massey’s Green Valley Resource Group and the highest-ranking official to be convicted in the ongoing federal investigation. Hughart’s sentence is one year above the top of federal advisory guidelines range. Hughart previously pleaded guilty in February to two federal charges: conspiracy to impede the Mine Safety and Health Administration (MSHA) and conspiracy to violate mine health and safety laws.
“Mine safety laws exist to protect the health and safety of coal miners. When those laws are broken, miners' lives are put in danger. That's absolutely intolerable," said U.S. Attorney Booth Goodwin. "This prosecution reiterates the message that mine safety laws are never, ever optional."
Hughart admitted that he and others at Massey conspired to violate health and safety laws and to conceal those violations by warning mining operations when MSHA inspectors were arriving to conduct mine inspections.
Hughart is the highest-ranking mine official ever convicted of conspiracy to impede MSHA or conspiracy to violate mine health and safety standards.
Coal mines in the United States are subject to an array of mandatory federal mine health and safety standards designed to prevent dangers such as explosions, roof collapses, and fires. MSHA conducts frequent, unannounced mine inspections to monitor compliance with those requirements. When MSHA inspectors find violations of health and safety requirements, mine owners are subject to monetary penalties and, in some cases, production shutdowns until violations are corrected.
The investigation was conducted by the Federal Bureau of Investigation, the Department of Labor Office of Inspector General, and the Internal Revenue Service's Criminal Investigation arm. Alpha Natural Resources, Inc., which acquired Massey’s operations in a June 2011 merger, is continuing to cooperate with the investigation.
The sentence was handed down by United States District Judge Irene C. Berger in federal district court in Beckley.
Counsel to the United States Attorney Steven Ruby handled the prosecution.
Former Teacher, Logan Storm, Sentenced to Prison for Possessing Child Pornography and Failing to Appear in CourtRead the Press Release
PORTLAND, Ore. – Logan Storm, a former teacher at Stoller Middle School in Beaverton, Oregon, will spend eight years in prison for possessing child pornography and failing to appear in court the day after a federal jury convicted him of the child pornography offense in January. At a sentencing hearing this morning, United States District Judge Michael H. Simon sentenced Storm, 37, to 84 months in prison in the child pornography case, and to a consecutive term of 12 months in prison for failing to appear for a detention hearing the day after the jury returned their guilty verdict in the pornography case. Upon release from prison, Storm will be subject to a 10 year term of supervised release with stringent conditions, including prohibitions on associating with minors, and restrictions on his use of computers. Storm will also be required to participate in sex offender treatment, and must register as a sex offender.
The investigation began in July 2010 when Storm’s then-girlfriend discovered images of child pornography on his laptop computer and on a thumb drive he had hidden in their bedroom, and reported it to the police. The Multnomah County Child Abuse Team served a search warrant at Storm’s residence and seized the laptop and two thumb drives from Storm’s bedroom, while Storm’s minor son was sleeping across the hall. Storm fled the country the following day, without saying good-bye to family or friends. He drove to Canada then flew to Europe, where he remained for more than six months.
Meanwhile, forensic examinations revealed images of child sexual abuse on the computer and both thumb drives. Many of the images were interspersed in Power Point presentations with graphic cartoons of child sexual abuse, child erotica, and non-pornographic, classroom photographs of his former students at Stoller Middle School.
Storm was originally charged with a number of offenses in the Multnomah County Circuit Court. He eventually returned to the United States to face those charges. The state charges were later dismissed in favor of this federal prosecution.
Storm was convicted in federal court on January 29, 2013, after a five day jury trial. He was allowed to remain out of custody pending a detention hearing the following morning. Later that evening, however, Storm cut off an electronic monitoring bracelet and fled once again, failing to appear as required at the detention hearing. An international manhunt ensued – for the second time.
Approximately six weeks later, Storm was apprehended in Mexico City, Mexico. He initially denied his identity. Eventually, however, Storm was deported to the United States and returned to Oregon, where he was detained on a new indictment for failure to appear, and in the child pornography case. He later pled guilty to the failure to appear charge. He was sentenced this morning in both cases.
In imposing the sentences, Judge Simon said that while Storm had many positive characteristics and traits, it was “quite clear” that he “does not accept responsibility for his conduct.” The judge had “no doubt” that the jury reached the “correct factual decision” when it found Storm guilty, yet Storm continues to blame others for his own unlawful conduct. Judge Simon also discussed the serious nature of the offense: “All child pornography offenses, including possession, are extremely serious because they result in perpetual harm to the victims, and validate and normalize the sexual abuse of children.” The victims, Judge Simon said, are “victimized over and over and over again” when offenders trade in and possess images of their sexual torture.
Judge Simon commended the U.S. Marshals Service for locating and apprehending Storm after he fled to Mexico: “The U.S. Marshals Service consists of brave, dedicated, thorough public servants who ensure if someone flees, they will be caught.” Judge Simon told Storm to think about the extra time he will be serving because he fled. He also urged Storm to recognize that he has a problem, and to seek treatment for it while incarcerated.
U.S. Attorney Amanda Marshall praised the sentence imposed on Storm, noting that it reflected the serious and troubling nature of Storm’s criminal conduct. “Logan Storm was a middle school teacher when he committed this offense,” she said. “He intermingled classroom photos of the very children he was entrusted with teaching into slide shows containing images of child sexual abuse and exploitation.” Storm’s offense was “particularly egregious,” she added, because “he twice fled the country, once shortly after officers served a search warrant at his house, and again only hours after the jury convicted him.”
Marshall praised the collaborative efforts of the local and federal law enforcement agencies responsible for the investigation and prosecution of the child pornography offense, and the efforts of the U.S. Marshals Service and authorities in Mexico in tracking and locating Storm after he fled the country. “Justice was delayed,” she said, but “ultimately it prevailed.” She hoped Storm’s sentence “sends a clear message to those who seek gratification in the sexual exploitation of children,” as well as those “who believe they can flee from justice.”
“The children of Oregon are safer with Logan Storm in prison,” said Brad Bench, special agent in charge of HSI Seattle, who oversees Oregon investigations. “HSI will continue to aggressively target those who prey upon and sexually exploit our children. We owe it to the young victims whose abuse is perpetuated by offenders around the world who collect and trade child pornography.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the U.S. Department of Justice and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation involved the cooperation and participation of the Portland Police Bureau, the Multnomah County Child Abuse Team, the Northwest Regional Computer Forensics Laboratory, the U.S. Department of Homeland Security/Homeland Security Investigations, the Multnomah County District Attorney’s Office, and the United States Attorney’s Office. The case was prosecuted by Assistant United States Attorneys Jane Shoemaker and Gary Sussman.
Former Rennselaer Corrections Officer Pleads Guilty to FelonyRead the Press Release
Instructed Restaurant Employees to Make False Statements to Federal Agents
ALBANY, NEW YORK – Former Rennselaer County Jail Corrections Officer Mark A. Piche, 44, of Poestenkill, New York, pled guilty yesterday before Chief United States District Judge Gary L. Sharpe to corruptly endeavoring to obstruct the due administration of the internal revenue laws announced United States Attorney Richard S. Hartunian; Special Agent-in-Charge Toni M. Weirauch, Internal Revenue Service, Criminal Investigation, New York Field Office; and Lieutenant John D. Durling, Special Investigations Unit Albany, New York State Police. Sentencing is scheduled for January 6, 2014 at 11:00 a.m. Piche faces up to three years in prison, a $5,000 fine, one year of supervised release, and a $100 special assessment.
According to the plea agreement, between 2007 and 2011, Piche caused his restaurant, Red Front LLC in Troy, New York, to file false quarterly returns with the Internal Revenue Service. Those false returns underreported the Federal Insurance Contributions Act taxes owed by Red Front as follows: $4,460.64 in 2007, $4,469.28 in 2008, $5,704.07 in 2009, $7,873.80 in 2010, and $6,777.75 in 2011. In addition, after learning that he was a target of a federal investigation, from December 15, 2011 through June 20, 2012, Piche instructed Red Front employees to make false statements to Internal Revenue Service (“IRS”) Criminal Investigation Division special agents conducting the criminal investigation. Specifically, Piche instructed Red Front employees to state falsely that Red Front had accurately reported and withheld taxes due on its employees’ wages, when as he knew, Red Front had fraudulently underreported employee wages from 2007 through 2011. When Piche instructed Red Front employees to make these false statements, he was trying to prevent the IRS from obtaining evidence that Red Front had fraudulently underreported its employees’ wages on its quarterly returns.
This case was investigated by the Internal Revenue Service, Criminal Investigation and the Albany Special Investigations Unit of the New York State Police. This case is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Former Preschool Teacher David Moe Sentenced to Federal Prison for Distribution of Child PornographyRead the Press Release
DENVER – Former Paddington Station preschool teacher David Moe, age 46, of Denver, was sentenced today by U.S. District Court Judge William J. Martinez to serve 96 months in federal prison for distribution of child pornography, United States Attorney John Walsh and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar Kibble announced. Following his prison sentence, Judge Martinez ordered Moe to spend 10 years on supervised release. Moe was also ordered to pay restitution of $5,000 each to three victims who filed requests with the court. He will also be required to register as a sex offender. Moe, who appeared at the sentencing hearing in custody, was remanded at the hearing’s conclusion.
According to court documents, including the stipulated facts contained in the plea agreement, on May 4, 2012, a detective with the Loveland Police Department, who is a member of the Internet Crimes Against Children (ICAC) Task Force, while working in an undercover capacity, logged on to the Internet and accessed a peer-to-peer file sharing program. The undercover detective attempted to download a digital file believed to contain child pornography from a remote host computer. The detective was able to connect directly to the remote host computer and the requested file was placed in queue. He remained in queue to receive the file until May 6, 2012, when the connection was terminated. The detective was unable to complete the download.
Using investigative techniques, the detective was able to determine that the defendant was offering a child pornography file for distribution. It was later determined that the Internet Protocol (IP) address offering the child pornography file for distribution resolved to Moe’s residence in Denver, Colorado. A federal search warrant was obtained by HSI and was executed on July 24, 2012. During the execution of the search warrant, items containing child pornography were seized, including two desktop computers, numerous external hard drives, and 383 CDs and DVDs. All of the items seized by HSI belonged to the defendant.
During the execution of the warrant, agents learned from the defendant that he had been a teacher at Paddington Station preschool for the last 18 years. At the time of the search warrant, Moe taught Cultural Rhythms/Enrichments (3 to 5 year olds) and had been the Director of Enrichments and Before and After School Care programs since 2005.
A forensic examination was conducted of the defendant’s computers, external hard drives, CDs and DVDs. Evidence of distribution and receipt of child pornography was found on the defendant’s two computers and an external hard drive. Evidence of child pornography possession was found on the defendant’s computers, external hard drives, and 383 CDs and DVDs. At least 800,000 child pornography/erotica images and over 13,000 child pornography/erotica videos were located on the defendant’s computers and computer media, including the video that had been made available to the undercover detective in May 2012.
A forensic examination reflected that the child pornography possessed by the defendant was well organized and archived. The examination revealed that the defendant possessed child pornography for at least 10 years. Further, the examination revealed that the defendant distributed and received child pornography since at least 2007. The defendant’s child pornography collection included pornographic depictions of children as young as toddlers.
As described in the plea agreement, a forensic examination was conducted on the defendant’s computers and computer media. All images and videos of child pornography recovered during forensic examination were provided to the National Center for Missing and Exploited Children (NCMEC). A thorough review of all of the images and videos possessed by the defendant reflected no evidence that the defendant himself created or produced child pornography. Today he pled guilty to distributing existing child pornography.
“The conduct the defendant was sentenced for today is reprehensible,” said U.S. Attorney John Walsh. “Moe spent 10 years collecting nearly 2,000,000 images of children engaged in explicit sexual conduct, all the while working as a preschool teacher. The U.S. Attorney's Office will continue to work with determination to protect children, and to combat the market for child pornography that Defendant Moe so extravagantly helped to fuel.”
“The predator’s market for sharing child pornography is built by people like David Moe who possessed more than a million explicit images of children being sexually abused,” said Kumar C. Kibble, special agent in charge of HSI Denver. “Our HSI special agents routinely work with our law enforcement partners to remove these predators from civil society.”
This case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI).
Moe was prosecuted by Assistant U.S. Attorney Alecia Riewerts Wolak.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
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Former Owner of Adult Entertainment Businesses Charged with Tax FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Anthony Andreozzi, of Delray Beach, was charged in a one count Information with conspiring to defraud the lawful functions of the Internal Revenue Service (IRS), in violation of Title 18, United States Code, Section 371. Defendant Andreozzi made his initial appearance in federal court today before U.S. Magistrate Judge Dave Lee Brannon.
According to the charges, Andreozzi owned and operated F & A Concepts, Inc. and Galaxy Communications, Inc., which were adult entertainment businesses incorporated in the State of Florida. Andreozzi conspired with another to unlawfully enrich himself by engaging in a fraudulent scheme to evade the payment of federal income taxes. As alleged in the Information, Andreozzi diverted corporate receipts of both corporations for his own personal use. In order to conceal his diversion of corporate funds, Andreozzi instructed his co-conspirator to falsify the corporate books and records by classifying his personal expenditures as business expenses. Defendant Andreozzi and his co-conspirator caused the preparation and filing of false corporate tax returns for F & A Concepts, Inc. and Galaxy Communications, Inc. and false personal income tax returns for defendant Andreozzi for 2006, 2007, 2008 and 2009, in that the corporate returns included fraudulent business expenses and the personal returns failed to include the diverted corporate income, thereby understating the defendant’s total income and tax due and owing on his personal returns.
If convicted, Andreozzi faces a maximum statutory sentence of up to five years in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Stephanie D. Evans.
An Information is only an accusation, and the defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Machesney Park Man Charged with Bankruptcy FraudRead the Press Release
ROCKFORD — A former Machesney Park, Ill. man was indicted today by a federal grand jury in Rockford on charges of bankruptcy fraud. ROBERT J. YONKEE, JR., 54, now of Lake Geneva, Wisconsin, filed a Chapter 7 Bankruptcy Petition on September 15, 2008. The indictment alleges that Yonkee fraudulently concealed property from the bankruptcy trustee, creditors, and the United States Trustee, including his ownership interest in: a business that sold auto parts, automobiles, and motorcycles; the United States Super Truck Racing Series; Bobby Yonkee Racing; as well as other inventory, merchandise, capital, vehicles, and motorcycles. The indictment further charges that Yonkee made false statements on a bankruptcy schedule and a Statement of Financial Affairs, both of which were filed under penalty of perjury. In addition, Yonkee was charged with making material false statements under oath in a bankruptcy proceeding during a meeting of creditors.
Each charge in this case carries a maximum penalty of 5 years’ imprisonment, and a fine of up to $250,000, or twice the gross gain or gross loss resulting from that offense, whichever is greater. The judge may also impose a sentence of probation of one to five years, and a term of supervised release of up to three years. The actual sentence will be determined by the United States District Court, guided by the Sentencing Guidelines.
The indictment was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Robert J. Shields, Jr., Acting Special Agent-In-Charge of the Chicago Office of Federal Bureau of Investigation.
Members of the public are reminded that a criminal indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt of the defendant beyond a reasonable doubt.
The government is being represented by Assistant U.S. Attorney Michael D. Love.
Indictment
Former Lorain County Corrections Officer Pleads Guilty to Assaulting an InmateRead the Press Release
A former Lorain County, Ohio corrections officer pleaded guilty today to one count of deprivation of rights under color of law, announced Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division, Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
According to court documents, Marlon Tayor, 47, of Vermilion, Ohio, assaulted an inmate by striking him repeatedly while working as a corrections officer in the Lorain County Jail.
These actions caused bodily injury to the inmate and deprived the inmate of the right to be free from cruel and unusual punishment, according to court documents.
“We in the Civil Rights Division are committed to working with our partners in the U.S. Attorney’s Office and the FBI to identify, and where appropriate, prosecute instances of law enforcement abuse,” said Acting Assitant Attorney General Samuels.
“The vast majority of law enforcement officials do a great job,” said U.S. Attorney Dettelbach said. “When someone abuses the power and privileges of their office, however, they can and will be held accountable.”
“The acknowledgment of excessive force exhibited by a fellow officer in law enforcement is disconcerting,” said Special Agent in Charge Anthony. “The public should be reminded that the vast majority of those serving within the criminal justice system do so with honor and integrity. Any allegation of abuse or excessive force involving law enforcement officers takes on a particular sense of urgency and will continue to be a priority for the FBI.”
Taylor is scheduled to be sentenced on Dec. 19, 2013.
This investigation was conducted by the FBI’s Cleveland Office. The case is being prosecuted by Assistant U.S. Attorneys Antoinette T. Bacon and Lauren Bell and Civil Rights Division Trial Attorney Betsy Biffl.
Former Lorain County Corrections Officer Pleads GuiltyRead the Press Release
A former Lorain County corrections officer pleaded guilty today to one count of deprivation of rights under color of law, said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office.
Marlon Taylor, 47, of Vermilion, was working as a corrections officer in Lorain County Jail on July 29, 2012, when he assaulted an inmate by striking him repeatedly, according to court documents.
These actions caused bodily injury to the inmate and deprived the inmate of the right to be free from cruel and unusual punishment, according to court documents.
“The vast majority of law enforcement officials do a great job,” Dettelbach said. “When someone abuses the power and privileges of their office, however, they can and will be held accountable.”
“We in the Civil Rights Division are committed to working with our partners in the U.S. Attorney’s Office and the FBI to identify, and where appropriate, prosecute instances of law enforcement abuse,” said Acting Assitant Attorney General Samuels.
“The acknowledgment of excessive force exhibited by a fellow officer in law enforcement is disconcerting,” Anthony said. “The public should be reminded that the vast majority of those serving within the criminal justice system do so with honor and integrity. Any allegation of abuse or excessive force involving law enforcement officers takes on a particular sense of urgency and will continue to be a priority for the FBI.”
Taylor is scheduled to be sentenced on Dec. 19.
This investigation has been conducted by the FBI’s Cleveland Office. Assistant U.S. Attorneys Antoinette T. Bacon and Lauren Bell and Trial Attorney Betsy Biffl will prosecute the case.
Former Cox Employees Charged with EmbezzlementRead the Press Release
Two Employees Allegedly Diverted Funds to Their Personal Bank Accounts
ATLANTA - Joysha Flucker has been arraigned on charges in an indictment that a federal grand jury returned on May 21, 2013, for allegedly stealing over $900,000 from Cox Communications.
“Those who shamelessly steal from their employer should expect to be held accountable,” said United States Attorney Sally Quillian Yates. “Companies must be able to trust their employees, especially when those employees are entrusted with handling money. The charges against these defendants reflect that they violated the law as well as their employer’s confidence.”Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The federal indictments of these two former Cox employees represent the FBI’s commitment to partner with and provide assistance to the corporate sector. Those individuals who engage in such wide spread and high dollar thefts run the very real risk of becoming targets in a federal investigation.”
According to United States Attorney Yates, the charges and other information presented in court: Joysha Flucker, 36, of Decatur, Ga., and Sakia Allen, 38, of Jonesboro, Ga., previously worked for Cox Communications, where they had access to the company’s electronic invoicing system that tracked the company’s payments to various third parties. Flucker and Allen manipulated the electronic invoicing system so that Cox Communications would issue duplicate payments to the third parties. However, the duplicate payments were directed into bank accounts under the control of the defendants. As a result of the defendants’ actions, Cox Communications suffered losses of at least $943,865.46.
Flucker was arraigned before United States Magistrate Judge Russell G. Vineyard today on the charges and was detained. Allen previously entered a plea of guilty to one count of wire fraud on July 25, 2013, before United States District Judge William S. Duffey, Jr.
The indictment charges the defendants with multiple counts of wire fraud and one count of conspiracy. Each wire fraud count carries a maximum sentence of 20 years in prison and the conspiracy count carries a maximum sentence of 5 years in prison. Each count also carries 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.
The United States is also seeking the forfeiture of all funds derived from this scheme. The United States previously forfeited a house and luxury automobiles as proceeds of the alleged offense.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation with the assistance of the Sandy Springs Police Department.Assistant United States Attorneys Mary F. Kruger and Thomas J. Krepp are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Final Defendants Sentenced in $900,000 Kick-Back SchemeRead the Press Release
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the last two defendants have been sentenced in federal court for their role in a nearly $900,000 bid-rigging scheme that involved several contractors.
Thomas Villirillo, 49, of Olathe, Kan., and Jaime Grimsley, 33, of Overland Park, Kan., were each sentenced by U.S. District Judge Gary A. Fenner on Monday, Sept. 9, 2013, to five years of probation. The court also ordered Villirillio to pay $105,560 in restitution and Grimsley to pay $79,167 in restitution.
On Jan. 3, 2013, Villirillo pleaded guilty to participating in a conspiracy to commit mail fraud. Villirillo was the owner of Reliable Construction, which fulfilled construction contracts for CRES Management. Between June 2008 and May 2009, Villirillo conspired to pay approximately $105,560 in kickbacks to co-conspirators Christopher Grimsley, 43, of Overland Park (Jaime Grimsley’s husband), and Jo Den Napper, 40, of Lenexa, Kan.
Christopher Grimsley and Napper were directors of construction for Aimco (and, later, CRES Management) and in charge of procuring bids for renovating apartment complexes. In exchange for these kickbacks, Christopher Grimsley and Napper agreed to rig bids in Villirillo’s favor without the knowledge of Aimco or CRES Management. Among other things, Villirillo used his credit card to pay for hotel accommodations in Las Vegas for Grimsley and his wife, Jaime Grimsley, in exchange for granting his bids to complete construction work.
On May 2, 2013, Jaime Grimsley pleaded guilty to filing false tax returns. Jaime Grimsley formed Geronimo Consultants in 2004, which she admitted was used to deposit kickback payments to her husband, Christopher Grimsley, from various building contractors. Between 2005 and 2008, the Grimsleys filed false tax returns omitting kickback income of $217,981, for a tax loss of $79,167.
Christopher Grimsley was sentenced on March 28, 2011, to 41 months in federal prison without parole and ordered to pay $538,340 in restitution after pleading guilty to mail fraud. Between May 2003 and May 2009, Christopher Grimsley accepted approximately $538,340 in kickbacks from various contractors in the Kansas City area. In exchange for these kickbacks, he agreed to rig bids in favor of the contractors without the knowledge of Aimco.
Napper, who pleaded guilty to mail fraud, was sentenced on Aug. 28, 2013, to one year and one day in federal prison without parole. Between August 2004 and May 2009, Napper accepted approximately $355,749 in kickbacks from various contractors. In exchange for these kickbacks, Napper agreed to rig bids in favor of the contractors without the knowledge of CRES Management.
Tim Rowland, 45, of Platte City, pleaded guilty to his role in the mail fraud conspiracy and was sentenced on March 30, 2013 to five years of probation and ordered to pay $298,765 in restitution. Rowland was the owner of ATNJ, a construction company that fulfilled contracts for Aimco Apartment Management. Between November 2004 and May 2009, Rowland conspired to pay approximately $298,765 in kickbacks to Christopher Grimsley and Napper.
Chris Childers, 44, of Olathe, Kan., pleaded guilty to his role in the mail fraud conspiracy and was sentenced on July 23, 2013, to one year of probation and ordered to pay $179,570 in restitution. Childers was the owner of All State Renovations, which fulfilled construction contracts for CRES Management. Between May 2004 and April 2009, Childers conspired to pay approximately $179,570 in kickbacks to Grimsley and Napper. In exchange for these kickbacks, they agreed to rig bids in Childers’s favor without the knowledge of CRES Management.
Bernie Belcher, 57, of Olathe, Kan., pleaded guilty to his role in the mail fraud conspiracy and was sentenced on July 30, 2013, to five years of probation and ordered to pay $201,223 in restitution. Belcher was the owner of All State Roofing, which fulfilled construction contracts for Aimco Apartment Management. Between May 2003 and May 2009, Belcher conspired to pay approximately $201,224 in kickbacks to Grimsley and Napper. In exchange for these kickbacks, they agreed to rig bids in Belcher’s favor without the knowledge of Aimco.
These cases were prosecuted by Assistant U.S. Attorneys Linda Parker Marshall and William L. Meiners. They were investigated by the Environmental Protection Agency and the U.S. Department of Housing and Urban Development, Office of Inspector General.Federal Narcotics and Firearms Charges Filed Against Twelve San Diego County ResidentsRead the Press Release
Federal grand jury indictments were unsealed today charging 12 San Diego County residents with federal drug trafficking and firearms offenses. The charges are part of a 10-month investigation by federal and local authorities that culminated with the arrests of dozens of people during raids this morning in the North County.
Of those charged federally, 10 were taken into custody during today’s sweep and two were still at large. Dozens of additional defendants will be prosecuted by the San Diego County District Attorney’s Office as part of the investigation, dubbed “Operation Mountain Shadow.”
The federal charges against the twelve defendants are the result of an intensive ten-month long investigation led by the Violent Trafficker Team (VTT) from DEA's San Diego division. Most of the defendants were arrested in today’s massive law enforcement operation involving more than 150 federal, state, and local law enforcement officers. Officers also executed federal search warrants at six residences and businesses during the operation.
All of the federal defendants are charged with distributing methamphetamine or conspiring with others to distribute methamphetamine. Several are also charged with illegally possessing firearms, and one is charged with discharging a firearm in furtherance of a drug trafficking crime.
Those in federal custody include Paulino Aguirre, Johnny Castillo, Christopher Maldonado, John Caudle, Oscar Rodriguez-Torres, Miguel Rodriguez-Torres, Todd Young, Jose Tyoran and Israel Ornelas. Tyoran and Ornelas appeared in federal court this afternoon; they entered not-guilty pleas and a detention hearing was set for Sept. 12 at 9:30 a.m. before U.S. Magistrate Judge David Bartick. The two federal fugitives are Vasquez and Juan Aguirre are not yet in custody.
The DEAs Violent Trafficker Team was created to respond to violent drug trafficking organizations in local communities throughout the nation. The Violent Trafficker teams are deployed on a temporary basis to assist state and local law enforcement in the disruption and dismantling of drug trafficking organizations. The Violent Trafficker Team’s deployment in Poway and Ramona was intended to address a surge in violent crime and drug overdoses, particularly among young people, in those communities. The surge was directly connected to narcotics and firearms trafficking in the area.
During the Violent Trafficking Team’s ten-month investigation, agents conducted multiple seizures of methamphetamine and also seized firearms including several 12-gauge shotguns, one sawed off shotgun, and several semi-automatic rifles.
DEFENDANTS Case Number: 13cr3310Juan Aguirre
Charges: Distribution of methamphetamine and conspiracy (21 U.S.C. §§ 841(a)(1) and 846)
Unlawful possession of firearm (18 U.S.C. § 922(g)(1))
Discharge of a firearm in furtherance of a drug trafficking offense (18 U.S.C. § 924(c))Paulino Aguirre
DEFENDANTS Case Number: 13cr3311
Charges: Distribution of methamphetamine and conspiracy (21 U.S.C. §§ 841(a)(1) and 846)Johnny Castillo
DEFENDANTS Case Number: 13cr3312
Charges: Distribution of methamphetamine and conspiracy (21 U.S.C. §§ 841(a)(1) and 846)
Unlawful possession of firearm (18 U.S.C. § 922(g)(1))Jose Ernesto Dinero
DEFENDANTS Case Number: 13cr3313
Charges: Distribution of methamphetamine (21 U.S.C. §§ 841(a)(1))Christopher Maldonado
Charges: Distribution of methamphetamine and conspiracy (21 U.S.C. §§ 841(a)(1) and 846)Jose Tyoran
Charges: Distribution of methamphetamine and conspiracy (21 U.S.C. §§ 841(a)(1) and 846)John Caudle
Charges: Distribution of methamphetamine and conspiracy (21 U.S.C. §§ 841(a)(1) and 846)Michelle Vasquez
Charges: Distribution of methamphetamine and conspiracy (21 U.S.C. §§ 841(a)(1) and 846)Israel Ornelas
DEFENDANTS Case Number: 13cr3314
Charges: Distribution of methamphetamine and conspiracy (21 U.S.C. §§ 841(a)(1) and 846)Oscar Rodriguez-Torres
Charges: Distribution of methamphetamine and conspiracy (21 U.S.C. §§ 841(a)(1) and 846)
Unlawful possession of firearm (18 U.S.C. § 922(g)(5)Miguel Rodriguez-Torres
DEFENDANTS Case Number: 13cr3315
Charges: Distribution of methamphetamine and conspiracy (21 U.S.C. §§ 841(a)(1) and 846)Todd Young
SUMMARY OF CHARGES
Charges: Distribution of methamphetamine and conspiracy (21 U.S.C. §§ 841(a)(1) and 846)
Unlawful possession of firearm (18 U.S.C. § 922(g)(1))Conspiracy to Distribute Controlled Substances B Title 21, United States Code, Sections 841(a)(1) and 846
Maximum penalty: Life imprisonment and $4,000,000 fineDistribution of Controlled Substances B Title 21, United States Code, Section 841(a)(1)
Maximum penalty: Life imprisonment and $4,000,000 fineUnlawful Possession of Firearm B Title 18, United States Code, Section 922(g)
Maximum penalty: 10 years= imprisonment and $10,000 fineCriminal Forfeiture B Title 21, United States Code, Section 853
AGENCIES
Maximum penalty: Forfeiture of proceedsDrug Enforcement Administration
Alcohol, Tobacco, Firearms and Explosives
United States Border Patrol
United States Marshals Service
San Diego County Sheriff's DepartmentAn indictment itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Federal Judge Convicts Rexburg Man of Distributing Meth and Violating Federal Firearms LawsRead the Press Release
POCATELLO – Noe Munguia-Diaz, a/k/a Juan Ernesto Medina-Munguia, 35, of Rexburg, Idaho, was found guilty today in federal court in Pocatello of six counts of distributing methamphetamine, one count of possession with intent to distribute methamphetamine, and two counts of unlawfully possessing firearms, U.S. Attorney Wendy J. Olson announced. Munguia-Diaz appeared before the Hon. Terry J. Hatter, Jr., Senior U.S. District Judge for the Central District of California. He waived his right to trial by a jury in August 2013.
During the two-day trial, Judge Hatter heard evidence that Munguia-Diaz sold methamphetamine to other individuals on six occasions between March 23, 2011, and October 19, 2012. During one of the sales, Munguia-Diaz also sold a handgun. Judge Hatter also heard evidence that on March 4, 2013, when the defendant was arrested, Rexburg police officers found over $4,500 in the possession of the defendant and his female passenger, evidence that Munguia-Diaz had deposited that day a total of $15,000 between two different banks, and a loaded handgun. Later than night, pursuant to a search warrant, officers recovered approximately one ounce of methamphetamine from a heating vent in Mungua-Diaz’s bedroom. Munguia-Diaz admitted to officers that he had methamphetamine in his house and that the firearm in the car belonged to him.
Munguia-Diaz is scheduled to be sentenced by Judge Hatter on December 3, 2013, at the federal courthouse in Pocatello. He faces a minimum term of five up to 40 years in prison, a maximum fine of $5 million, and at least four years of supervised release. Munguia-Diaz will forfeit the two firearms he unlawfully possessed and $31,202 as proceeds from his criminal offenses.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Madison County Sheriff’s Office, with assistance by Bingham Co. Sheriff’s Office, Blackfoot Police Department, Federal Bureau of Investigation, Fremont Co. Sheriff’s Office, Idaho State Police, Jefferson Co. Sheriff’s Office, Rexburg Police Department, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Eli Lilly Warehouse Thief Admits Participating in Additional Multimillion Dollar BurglariesRead the Press Release
– Stole more than $1.5 million in cigarettes from Leitchfield, Kentucky warehouse
New Haven, Conn. – The United States Attorney’s Offices for the District of Connecticut, Eastern District of Virginia, Middle District of Florida and Western District of Kentucky announced that Amed Villa pleaded guilty yesterday, before U.S. Magistrate Judge Joan G. Margolis in New Haven to federal conspiracy and theft charges stemming from his participation in warehouse burglaries in Virginia, Florida and Kentucky. On July 1, 2013, Villa pleaded guilty in the District of Connecticut to charges stemming from the theft of approximately $90 million in pharmaceuticals from the Eli Lilly Company warehouse and storage facility in Enfield, Conn., in March 2010, and more than $8 million in cigarettes and a cargo trailer from a warehouse in East Peoria, Ill., in January 2010.
In pleading guilty to the additional charges, Villa, 49, admitted that he and others stole more than $13.3 million in pharmaceuticals from the GlaxoSmithKline warehouse in Colonial Heights, Va., in August 2009, approximately $7.8 million in cellular telephones and multimedia tablets from the Quality One Wireless warehouse in Orlando, Fla., in January 2011, and more than $1.5 million in cigarettes from the Coremark Cigarette Warehouse in Leitchfield, Ky., in March 2011.
Villa was charged with the additional thefts in the Eastern District of Virginia, Middle District of Florida and Western District of Kentucky, respectively, and the cases were transferred to the District of Connecticut for further prosecution.
During each of the thefts, Villa and his co-conspirators gained entry into the warehouse through the roof, disabled the alarm system and loaded the stolen goods into tractor trailers.
Villa’s DNA was identified on items discarded during the thefts in Connecticut, Illinois, Florida and Virginia.
To date, Villa has pleaded guilty to two counts of conspiracy to commit theft from an interstate shipment and five counts of theft from an interstate shipment. He is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton in New Haven on December 4, 2013, at which time he faces a maximum term of imprisonment of five years on each of the conspiracy counts, and a maximum term of imprisonment of 10 years on each of the theft counts.
Villa, a citizen of Cuba who last resided in Miami, has been detained since his arrest on May 3, 2012.
The investigation of the Connecticut warehouse theft is being led by the FBI in New Haven and the Enfield Police Department, the investigation of the Illinois theft is being led by ATF and the East Peoria Police Department, the investigation of the Virginia theft is being led by the FBI, the investigation of the Florida theft is being led by the FBI and the Orlando Police Department, and the investigation of the Kentucky theft is being led by ATF.
This case is being prosecuted in the District of Connecticut by Assistant U.S. Attorney Anastasia E. King, with the assistance of Assistant U.S. Attorney K. Tate Chambers of the Central District of Illinois, Assistant U.S. Attorney Jessica Aber of the Eastern District of Virginia, Assistant U.S. Attorney Christopher LaForgia of the Middle District of Florida and Assistant U.S. Attorney Joshua Judd of the Western District of Kentucky.
East Rochester Man Sentenced for Roles in Scrap Medal Theft and Marijuana Grow OperationRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Christopher H. Monfort, 41, of East Rochester, N.Y., who was convicted of burglary of a railcar and manufacturing 50 or more marijuana plants, was sentenced to 78 months in prison and ordered to pay $4,669.26 in restitution by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that Monfort was involved in four scrap metal thefts between June 19 and June 30, 2009. On June 30, 2009, the defendant, along with Richard E. Riedman, Anthony Russell, Anthony Toscano, and Timothy M. Stone, stole more than 17 gross tons of a high-grade scrap steel from a railcar at a CSXT rail yard in Batavia, N.Y. Monfort and his co-conspirators used a logging truck to remove the scrap steel from the railcar, wore dark clothing and used lookouts to avoid detection by law enforcement authorities and pedestrians, and used two-way radios to communicate with each other during the theft.
The defendant and Stone were apprehended in the logging truck, and Riedman, Toscano and Russell were arrested in a pick-up truck by members of the Genesee County Sheriff's Office as they left the scene of the theft in the early morning hours of June 30, 2009. The bales were in the process of being shipped to a steel mill in Pennsylvania when Monfort and his co-conspirators stole them. The defendant also stole an additional 50 gross tons of the same type of high-grade processed scrap steel during three other thefts from railcars at the same CSXT railroad yard between June 19 and June 20, 2009.
Riedman, Toscano, Russell, and Stone were convicted of the theft that occurred on June 30, 2009, after a two-week jury trial before Judge Siragusa in September 2012. Toscano, Russell, and Stone were sentenced to 18 months, 15 months, and 12 months in prison, respectively. Riedman is awaiting sentencing.
The marijuana charge stemmed from a search warrant executed at a residence located at 353 Noridge Drive in Irondequoit, N.Y, in December, 2011. During the search, the police recovered 276 marijuana plants, as well as scales, lights, and other equipment used to grow and manufacture marijuana. Monfort admitted to using the residence to house a marijuana grow operation.
The convictions relating to the scrap metal thefts are the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig, and the Genesee County Sheriff's Office, under the direction of Gary Maha.
The conviction relating to the marijuana grow operation is the culmination of an investigation on the part of the Greater Rochester Area Narcotics Enforcement Team composed of law enforcement personnel from the Rochester Police Department, under the direction of Chief James M. Sheppard, the Brighton Police Department, under the direction of Chief Mark Henderson, the East Rochester Police Department, under the direction of Chief Steven J. Clancy, and the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division.
Columbia, S.C., Agrees to Major Sewer System UpgradesRead the Press Release
WASHINGTON – The Department of Justice, U.S. Environmental Protection Agency (EPA), and South Carolina Department of Health and Environmental Control (DHEC) announced a proposed settlement with the City of Columbia to resolve violations of the Clean Water Act (CWA), including unauthorized overflows of untreated raw sewage. Columbia has agreed to undertake a thorough assessment of, and implement extensive improvements to, its sanitary sewer system at an estimated cost of $750 million.
In addition, Columbia will implement a $1 million supplemental environmental project to restore streams, reduce flooding, and improve water quality in segments of Rocky Branch, Smith Branch and Gills Creek, waterways that run through historically low income and minority neighborhoods.
“This settlement will bring badly needed improvements to Columbia’s aging sewer infrastructure, reduce the dangers of sewage contamination and improve the quality of waterways in historically disadvantaged communities,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “It is good news for human health and the environment of South Carolina’s capital city today and for future generations.”
“In this settlement, the city of Columbia has taken responsibility for its aging sewer treatment system,” said U.S. Attorney for the District of South Carolina Bill Nettles. “The city’s leadership and engineers have worked many long, hard hours with the engineers at the EPA and the Department of Health and Environmental Control in hammering out a solution that addresses the problems in the city sewer system, improves the quality of our rivers and streams, and the health and safety of South Carolinians for decades to come. For that we are grateful.”
“Sewage overflows are a major problem that affects water quality in the Southeast and across the entire country because of aging infrastructure,” said Acting EPA Regional Administrator Stan Meiburg. “Bringing systems like Columbia’s into compliance is one of EPA’s top enforcement priorities, and through this settlement the city is taking positive steps to correct longstanding sewer overflow problems.”
“We are pleased this matter has been resolved through a consent decree, rather than costly litigation,” said DHEC Director Catherine Templeton. “This agency will continue to work closely with the city of Columbia and our federal partners to ensure the agreed-upon improvements are realized, and the health of the citizens and environment are protected.”
The proposed consent decree requires Columbia to implement a comprehensive sewer system assessment and rehabilitation program to address the existing problems of raw sewage overflows. Based on the sewer system assessment, the city will develop and implement remedial projects and infrastructure upgrades to address conditions causing sewer overflows. These remedial projects will be in addition to infrastructure upgrades already underway or planned by Columbia, which the consent decree also requires to be completed. Lastly, the city will develop and implement specific programs designed to ensure proper management, operation and maintenance of its sewer system over the long-term to prevent future sewer overflows.
Keeping raw sewage out of the waters of the United States is one of the EPA’s national enforcement initiatives for 2011 to 2013. The initiative focuses on reducing sewer overflows, which can present a significant threat to human health and the environment. These reductions are accomplished by obtaining cities’ commitments to implement timely, affordable solutions to these problems.
The United States has reached similar agreements in the past with numerous municipal entities across the Southeast, including Mobile and Jefferson County (Birmingham), Alabama; Miami-Dade County, Fla.; Atlanta and Dekalb County, Ga.; Northern Kentucky Sanitation District #1, Louisville/Jefferson County MSD, and Lexington-Fayette Urban County Government, Ky.; Jackson, Miss.; Wilmington/New Hanover County/Cape Fear Public Utility Authority, N.C.; and Memphis, Knoxville Utilities Board, Chattanooga and Nashville MWS, Tenn..
The proposed settlement is memorialized in a consent decree that was lodged yesterday in the U.S. District Court for the District of South Carolina. The proposed consent decree is subject to a 30-day public comment period and final court approval. A copy is available on the Department of Justice website at: www.justice.gov/enrd/Consent Decrees.html.
More information on EPA’s national enforcement initiative is available at: www.epa.gov/compliance/data/planning/initiatives/2011sewagestormwater.html
Colorado Man Sentenced to Ten Years in Federal Prison for Cocaine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Jimmy Garcia, 51, of Denver, Colo., was sentenced earlier today in federal court in Las Cruces, N.M., to ten years in federal prison followed by five years of supervised release for his cocaine trafficking conviction. Garcia’s sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, , Special Agent in Charge Joseph M. Arabit of the El Paso Division of the DEA, and Chief Patrol Agent Scott A. Luck, El Paso Sector of the U.S. Border Patrol.
Garcia was arrested on June 21, 2012, after Border Patrol agents discovered 6.62 kilograms of cocaine secreted in his vehicle during a routine inspection at the I-25 Border Patrol checkpoint north of Las Cruces. According to the criminal complaint, the agents sought and obtained Garcia’s consent to have a narcotics canine inspect his vehicle when Garcia became nervous and non-responsive during routine questioning. After the narcotics canine indicated the presence of narcotics in the vehicle, the agents found seven bundles of cocaine hidden in the dash of the vehicle. Garcia has been in federal custody since his arrest.
On May 7, 2013, Garcia pled to the indictment and admitted driving into a Border Patrol checkpoint in a vehicle containing 6.62 kilograms of cocaine. Garcia further admitted that he intended to transport the cocaine to others who would further distribute the drugs.
This case was investigated by the DEA and the Las Cruces station of the U.S. Border Patrol and was prosecuted by Assistant U.S. Attorney Amanda Gould of the U.S. Attorney’s Las Cruces Branch Office.
Citizen of the United Kingdom Convicted for Resisting Deportation OrdersRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that Michael Phillip Telemaque, 47, of the United Kingdom, was found guilty by a federal jury on four counts of impeding or hampering his deportation. U.S. District Judge Patricia Minaldi presided over the trial.
Telemaque’s trial started Monday and ended Tuesday morning with the jury returning a guilty verdict after deliberating for 30 minutes. Witness testimony and documents admitted at trial revealed that Telemaque refused to fill out passport applications for his deportation to the United Kingdom four times between November 2010 and September 2011. In addition to the application requirement, the United Kingdom also requires that Telemaque must speak to a representative of the consulate, provide fingerprints and a photo, and show proof that he is a United Kingdom citizen. He refused to perform any of these tasks and failed to provide an explanation to his refusal. Telemaque was found guilty in January 1997 for selling crack cocaine and received a 180-month prison sentence. He was ordered to be removed from the United States in June of 2010.
Telemaque faces up to four years in prison per count, a $250,000 fine, and one year of supervised release for resisting deportation. Sentencing is set for December 6, 2013.
The Immigration and Customs Enforcement - Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorney James T. McManus and Special Assistant U.S. Attorney Robert C. Abendroth are prosecuting the case.Chinese National Sentenced for Illegally Exporting Military Electronics ComponentsRead the Press Release
BOSTON - Zhen Zhou Wu, a Chinese national, was re-sentenced yesterday to 84 months in prison for conspiring over a 10-year-period to illegally export military and sophisticated electronics to the People’s Republic of China (PRC).
Wu was also convicted of illegally exporting sensitive electronic components to the PRC on 12 occasions between 2004 and 2007. Several Chinese military entities were among those to whom the defendant exported the equipment, which is used in military phased array radar, electronic warfare, and missile systems. He was also ordered to pay a $15,000 fine. After serving his sentence Wu will be subject to deportation to the PRC.
On March 19, 2013, the U.S. Court of Appeals for the First Circuit affirmed Wu’s conviction on 15 of the 17 counts of export violations for which a jury convicted him after a six-week trial in 2010. The First Circuit vacated two counts of conviction that charged Wu with illegally exporting parts designated on the United States Munitions List because it held that the jury instructions given were constitutionally inadequate. However, the First Circuit observed that “from 1996 until 2008, Wu and his co-defendant, Yufeng Wei, shipped tens of millions of dollars worth of sophisticated electronic components from the United States to China, with little regard for whether the parts that they sold were export-controlled.” Further, the First Circuit found that Wu’s company “specifically pursued military customers; and Wu promoted himself as both an exporter of military supplies and an export compliance expert.” Lastly, the First Circuit determined that “Wu and Wei repeatedly attempted to disguise the fact that they were exporting to China and that they lacked the necessary licenses to do so.”
Because two counts of the conviction were vacated, the case was remanded for a re-sentencing hearing. Wei’s re-sentencing hearing has not yet been scheduled.
On May 17, 2010, Wu, his ex-wife, Wei, and his company, Chitron Electronics, Inc. were convicted of conspiring to unlawfully export to the PRC military electronics from 1997 to 2007 and export restricted electronics components and illegally exporting such parts to the PRC on numerous occasions between 2004 and 2007. The defendants’ illegal enterprise involved the use of Chitron Electronics, Inc., a company Wu established in Waltham, Mass., as a front company for its parent company, Chitron Electronics Limited, headquartered in Shenzhen, PRC. Wu used Chitron-US to procure export restricted equipment from US suppliers and then export the goods to from Waltham to China, through Hong Kong without the suppliers’ knowledge. The exported equipment is used in electronic warfare, military radar, fire control, military guidance and control equipment, missile systems, and satellite communications. Many of Chitron’s customers were Chinese military research institutes and military entities responsible for procuring, developing, and manufacturing electronic components for China’s Army, Navy and Air Force.The Department of Defense’s Defense Technology Security Administration concluded in a report filed with the Court that the defendants’ activities in this case seriously threatened “U.S. national and regional security interests.” According to the Department of Defense, the parts the defendants were convicted of illegally exporting are “vital for Chinese military electronic warfare, military radar, fire control, military guidance and control equipment, and satellite communications.” The report further concluded that the illegally exported parts are “precisely the [types of] items ... that the People’s Liberation Army actively seeks to acquire.”
United States Attorney Carmen M. Ortiz; Acting Assistant Attorney General John P. Carlin of the Justice Department’s National Security Division; John J. McKenna, Special Agent in Charge of the U.S. Department of Commerce, Office of Export Enforcement, Boston Field Office; Bruce Foucart, Special Agent in Charge of Homeland Security Investigations in Boston: Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; and Leigh-Alistair Barzey, Resident Agent in Charge of Defense Criminal Investigative Service in Boston made the announcement. The case is being prosecuted by Assistant U.S. Attorneys B. Stephanie Siegmann and John A. Capin of Ortiz’s Anti-Terrorism and National Security Unit.
Canal Winchester Man Pleads Guilty to Armed Robbery of Reynoldsburg Jewelry StoreRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – Darnell J. Harris, 26, of Canal Winchester, Ohio, pleaded guilty in U.S. District Court to committing a takeover style armed robbery of a Reynoldsburg jewelry store in May, 2012 with his sister as an accomplice.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Christopher J. Hyman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Reynoldsburg Police Chief Jim O’Neill announced the plea entered September 9 before Senior U.S. District Judge Peter C. Economus.
Harris pleaded guilty to one count of obstructing interstate commerce (Hobbs Act), a crime punishable by up to 20 years in prison, and one count of brandishing a firearm during a crime of violence, a crime punishable by a mandatory seven-year term of imprisonment that Harris must serve consecutive to any prison time he receives for the robbery.
According to court documents, Harris’ sister, Mariah, entered Heins Jewelers posing as a customer shopping for engagement rings. Once she had the attention of both employees, Darnell entered the store carrying a handgun and ordered both employees into a back room. Harris tied up the employees. One loosened his restraints and tried to escape. Darnell viciously beat the employee with the gun, causing severe face and head trauma. The siblings fled the store with cash and jewelry.
Reynoldsburg and Pickerington police officers arrested Darnell Harris in March 2013 following a traffic stop in Pickerington. Mariah Harris surrendered to the Reynoldsburg Police and was arrested there. Darnell Harris has been in custody since his arrest. Judge Economus will set a date for sentencing.
Mariah Harris pleaded guilty on September 3, 2013 to one count of violating the Hobbs Act.
U.S. Attorney Stewart commended the investigation conducted by the ATF and Reynoldsburg Police. Assistant U.S. Attorneys David J. Bosley and Doug Squires are representing the United States in the case.
California Man with Colorado Ties Pleads Guilty to Multi-Million Dollar Real Estate SchemeRead the Press Release
DENVER – Dale Johnson, age 46, of Los Angeles, California, pled guilty before U.S. District Court Judge Wiley Y. Daniel last week to one count of wire fraud and one count of money laundering, federal law enforcement authorities announced. Johnson, who is free on bond, is scheduled to be sentenced by Judge Daniel on January 21, 2014 at 11:00 a.m. Johnson along with six other co-defendants, as mentioned below, were indicted by a federal grand jury in Denver on September 1, 2011.
According to the facts contained in the indictment as well as the stipulated facts contained in the plea agreement, the scheme began in March of 2006. Johnson was a member of a business group based out of Culver City, California called “Synergy”. In early 2006, Synergy was made up of Dale Johnson (President & Chief Executive Officer), Donald Beverly (Vice President of New Business Development), Ronald Benjamin (Regional Manager and Senior Vice President of Sales & Marketing), Jimmy Hutchinson (Chief Financial Officer), and Vincent Jackson (Vice President of Marketing).
In 2006, Johnson began to present Synergy members with a number of properties available for purchase in Colorado. He began to develop business relationships with various real estate professionals in Colorado, to include, Jerry Minney (real estate broker) and Scott Goldberg (mortgage broker). Minney and Golderg assisted Synergy members in the purchase of various homes in Colorado. Johnson and other Synergy members began traveling to Colorado where they started purchasing multiple residential properties. The homes were typically purchased in the individual member’s own name, using the member’s personal credit history to qualify for the purchases. Johnson and others typically identified the property and helped arrange for the purchase by a Synergy member.
As part of the scheme, Synergy members with the assistance of Goldberg, and other persons, submitted “uniform residential loan applications” to lenders in connection with qualifying for home loans. In a number of loan applications, Synergy members and other buyers provided, or assisted in providing, materially false statements, representations, and omissions to real estate lenders, or the lenders’ agents. False information included income, assets, debts, employment history and/or intent to occupy the home as a primary residence.Furthermore, Synergy Members, with the assistance of Goldberg, Minney, and others, arranged for a portion of lender funds from home purchases to be paid to Synergy Members as “kickbacks”. Such kickbacks were often concealed from lenders through a series of false statements and material omissions made in connection with closings for properties or in connection with the loan documents submitted to the lenders. To further conceal the kickbacks from lenders, they routed payments through third parties posing as property management companies, such as “5280 Denver Real Estate” and “Willow Property Management”, and through realtor commissions paid to Broker One Real Estate.
Donald Beverly pled guilty on July 30, 2012 and is scheduled to be sentenced on November 20, 2013. Scott Goldberg pled guilty on June 12, 2012 and is schedule to be sentenced on October 15, 2013. Vincent Jackson pled guilty on May 23, 2012 and was sentenced to 60 months of probation on October 17, 2012.
Wire fraud carries a penalty of not more than 20 years in federal prison and a fine of up to $250,000 per count. Money Laundering carries a penalty of not more than 10 years in federal prison and a fine of up to $250,000 per count.
This case was investigated by agents with Internal Revenue Service Criminal Investigation (IRS-CI), the Federal Bureau of Investigation (FBI), United States Postal Service and the U.S. Secret Service.
The case is being prosecuted by Assistant United States Attorney Tim Neff.
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Cahokia Illinois Woman Pleads Guilty to Health Care FraudRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on September 10, 2013, Lisa C. Luckett, 50, of Cahokia, IL, pled guilty to a two-count indictment charging that she engaged in a scheme to commit health care fraud. At her sentencing Luckett will face up to 20 years in prison, a fine of up to $500,000, and up to 3 years of supervised release. Sentencing has been set for January 17, 2014, at 9:00 a.m. in United States District Court in East St. Louis, Illinois.
Luckett’s codefendant, Henry Billups, III, 49, of Cahokia, pled guilty to one count of engaging in the scheme to commit health care fraud on September 4, 2013. Billups faces up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release. He is scheduled to be sentenced on January 14, 2014, at 9:00 a.m. in United States District Court in East St. Louis, Illinois.
During their plea hearings, Luckett and Billups both admitted that they had submitted or caused to be submitted, false fraudulent bills in regard to providing personal assistant services in the Home Services Program, a Medicaid Waiver Program. The program is designed to provide a disabled individual with assistance in performing daily living activities in the home in order to allow the person to stay at home instead of entering into a nursing home.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General; Illinois State Police; and the St. Clair County Sheriff’s Department. The case is being prosecuted by Assistant United States Attorneys Ranley R. Killian and William E. Coonan.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General or call 1-800-447-8477.
Builder Sentenced to Prison for Embezzling from Federal Housing ProgramRead the Press Release
LAS VEGAS - - A home builder was sentenced today by U.S. District Judge Kent J. Dawson to 51 months in prison and three years of supervised release for embezzling from a federal housing grant program that was to be used to build affordable housing for the Navajo people near Chilchinbeto, Arizona, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
William Aubrey, 71, of Mesquite, Nevada, was convicted by a jury in May of two counts of taking and converting money and funds belonging to a tribal organization. A hearing to decide the amount of restitution Aubrey must pay will be held on Oct. 15, 2013. Aubrey is to report to federal prison on Jan. 3, 2014.
“Persons who steal from federal programs cheat the recipients of those programs as well as the American taxpayer,” said U.S. Attorney Bogden. “As the prosecution of this case demonstrates, persons who steal from federal programs such as HUD or Medicare, will be prosecuted and when convicted face severe penalties.”
The Navajo Nation is a federally recognized sovereign Indian Tribe whose borders encompass a large portion of Arizona and extend into New Mexico and Utah. According to court records and the evidence introduced at trial, Fort Defiance Housing Corporation was a Navajo Nation non-profit corporation entrusted by the Navajo Housing Authority to manage federal housing funds granted to the Navajo Nation. Fort Defiance Housing Corporation contracted with a Lodgebuilder, a for-profit construction company owned and operated by Aubrey, to oversee the construction of several housing developments including the project near Chilchinbeto. Fort Defiance Housing Corporation also empowered Aubrey to manage the federal housing funds granted to that non-profit corporation for purposes of paying subcontractors, suppliers and other construction expenses. Aubrey mismanaged and failed to account for those grant funds. Aubrey transferred the housing grant funds into his own personal account and misused a substantial portion of the funds to pay his own gambling debts and other personal expenses.
The case was investigated by the Office of Inspector General for U.S. Housing and Urban Development and prosecuted by Assistant U.S. Attorneys Timothy S. Vasquez and Kathryn C. Newman.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Brookfield Podiatrist Sentenced to 41 Months in Federal Prison for Defrauding MedicareRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that SAMIR ZAKY, 38, of Brookfield, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 41 months of imprisonment, followed by one year of supervised release, for defrauding Medicare.
On June 14, 2013, a jury found ZAKY guilty of 14 counts of health care fraud and 14 counts of making false statements relating to health care matters. According to the evidence at trial, ZAKY is a podiatrist who operated Affiliated Podiatrists, LLC in Brookfield. From August 2010 to July 2011, ZAKY submitted numerous claims to the Medicare program stating that he had performed nail avulsions, a surgical procedure that requires use of an injectable anesthetic and removes the entire border of a patient’s toenail. In fact, ZAKY had only clipped or trimmed the patient’s toenails.
Judge Covello ordered ZAKY to pay $134,139 in restitution to Medicare, which includes restitution for fraudulent claims dating back to 2005.
ZAKY has been detained since June 17, 2013, after U.S. Magistrate Judge Holly B. Fitzsimmons determined that ZAKY had violated the conditions of his bond by traveling to the house of a 93-year-old patient shortly after his conviction to ask his patient why he had testified against him during the trial.
This matter was investigated by the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys David J. Sheldon and Christopher W. Schmeisser, and Auditor Kevin Saunders.
Acting U.S. Attorney Daly encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at 203-777-6311 or 1-800-HHS-TIPS.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Bristol Woman Pleads Guilty to Federal Gun ChargeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JENNIFER CARRION-SEGARRA, 29, of Bristol, pleaded guilty today before United States Magistrate Judge Donna Martinez in Hartford to one count of possession of a firearm by a previously convicted felon.
According to court documents and statements made in court, on May 22, 2012, CARRION-SEGARRA sold a pink Kahr .380 pistol, which she had nicknamed “Pinky,” to an undercover agent from the Bureau of Alcohol, Tobacco, Fireworks and Explosives (ATF). The firearm was previously purchased by CARRION-SEGARRA’s husband.
Prior to May 22, 2012, CARRION-SEGARRA had been convicted of possession of narcotics and sale of narcotics, both felony offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
CARRION-SEGARRA is scheduled to be sentenced by United States District Judge Robert N. Chatigny on December 11, 2013, at which time she faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
CARRION-SEGARRA has been released on a $150,000 bond since her arrest on March 26, 2013.
This case is being investigated by ATF and prosecuted by Assistant United States Attorney Jonathan S. Freimann and Special Assistant United States Attorney Natasha Dye.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Bolivar Man Convicted of Production and Possession of Child PornographyRead the Press Release
Jackson, TN – John McKinney, 71, of Bolivar, TN was convicted today of four counts of producing child pornography, and one count of possession of child pornography, announced U.S. Attorney Edward L. Stanton III.
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It took the jury approximately 10 minutes to find McKinney guilty on all charges. He faces a mandatory minimum sentence of 15 years in prison for each of the production counts and a minimum of 10 years on the possession count. He could receive up to 140 years in prison. There is no parole in the federal prison system.
“The jury’s verdict clearly demonstrates that this community will not tolerate predatory acts like the ones carried out by John McKinney,” said U.S. Attorney Stanton. “We have an obligation to protect our most vulnerable citizens – young, innocent children. This office, working together with our law enforcement partners, will relentlessly pursue anyone who commits such heinous crimes and ensure that they face the full consequences of the law.”
According to facts revealed during the trial, McKinney took sexually explicit pictures of girls as young as nine years old while the girls were visiting at his home. According to the sworn testimony of the mother of one victim, her younger daughter saw sexually explicit photos on McKinney’s computer. Investigators confiscated more than 87 CDs from a building on McKinney’s farm that contained pictures that he had taken depicting child pornography.
On June 25, 2013, McKinney was convicted by a federal jury of four counts of being a felon in possession of a firearm or ammunition. The guns and ammunition were discovered during the search of his home that revealed the pornographic photos. He is awaiting sentencing in that case and is facing up to 10 years in prison and a $250,000 fine for each count.
This case is being investigated by the Hardeman County Sheriff’s Office, the Jackson Police Department and the FBI in Jackson. Assistant U.S. Attorneys Deb Ireland and James Powell represent the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative of 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, PSC 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 PSC, please visit http://www.justice.gov/psc. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."Belcourt Man Sentenced for Interstate Transportation of Stolen Vehicle & Interstate Violation of Protection OrderRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Sept. 10, 2013, David L. Lilley, 27, Belcourt, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on charges of interstate transportation of a stolen vehicle and interstate violation of protection order. Lilley pleaded guilty to the charges on May 30, 2013.
Judge Hovland sentenced Lilley to three years in federal prison, to be followed by five years of supervised release. Lilley was ordered to pay a $200 special assessment to the Crime Victim’s Fund and $1,418.21 in restitution.
On Feb. 17, 2013, Lilley stole a vehicle and took a juvenile from the Turtle Mountain Indian Reservation and traveled to Iowa. Lilley was prohibited from having contact with the juvenile because of a protection order issued by the Turtle Mountain Tribal Court.
The case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs – Turtle Mountain Agency and the Iowa Highway Patrol.
Assistant U.S. Attorney Brandi Sasse Russell prosecuted the case.
Belcourt Man Pleads Guilty to Assaulting Federal OfficerRead the Press Release
BISMARCK– U.S. Attorney Timothy Q. Purdon announced that on Sept. 10, 2013, Michael Jackson, 30, Belcourt, N.D., pleaded guilty in U.S. District Court to a charge of assaulting and resisting a federal officer.
On May 7, 2013, a police officer with the Bureau of Indian Affairs – Turtle Mountain Agency, attempted to detain Jackson and put him into a patrol vehicle. Jackson resisted and kicked the officer in the knee.
The charge of assaulting and resisting a federal officer carries a statutory maximum penalty of 20 years in federal prison and a $250,000 fine.
The case was investigated by the Bureau of Indian Affairs – Turtle Mountain Agency and the Federal Bureau of Investigation.
Sentencing for Jackson has been scheduled for Dec. 20, 2013, in U.S. District Court in Bismarck, N.D., at 9:00 a.m.
Assistant U.S. Attorney Brandi Sasse Russell is prosecuting the case.
Bassett Man Sentenced for Post Office VandalismRead the Press Release
DANVILLE, VIRGINIA – An 18-year-old Bassett man, who previously pled guilty to breaking into a Henry County Post Office and causing almost $20,000 worth of damage, was sentenced last week in the United States District Court for the Western District of Virginia in Danville.
Matthew Fitzgerald, 18, of Bassett, Va., previously pled guilty to one-count of willfully committing a depredation against property of the United States, Specifically the Fieldale, Va., Post Office. Last Friday in District Court, the defendant was sentenced to six months in prison, three years of supervised release and was ordered to pay $19,309 in restitution.
According to evidence presented at previous hearings by Assistant United States Attorney Charlene R. Day, Fitzgerald admitted that on April 18, 2013 he broke into the Fieldale Post Office located in Henry County and damaged property inside.
Fitzgerald admitted to breaking windows, glass, damaging computers, discharging a fire extinguisher, throwing more than 1,000 keys on the floor and breaking florescent light tubes. In all, Fitzgerald caused $19,309 in damages.
The investigation of the case was conducted by the United States Postal Inspection Service and the Henry County Sheriff’s Office. Assistant United States Attorney Charlene Day is prosecuting the case for the United States.
23 Individuals Indicted and Arrested for False Statements in Loan Applications and Bank FraudRead the Press Release
Defendants face a forfeiture allegation of $5,394,104.00
San Juan, Puerto Rico – Twenty-three individuals, including street brokers, loan officers, realtors, appraisers, straw buyers and sellers have been charged in a 15-count indictment unsealed today and returned by a grand jury in San Juan, Puerto Rico on September 4, 2013, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico announced today. These charges stem from a scheme used by the defendants to obtain money from mortgage lending institutions.
The investigation revealed that false statements and documents were submitted to mortgage lending institutions to qualify straw buyers for mortgage loans. The false and fraudulent statements supplied by these defendants were: bank account statements, income tax withholding statements, rental contracts, certification forms, and employment certifications, to mention a few. Once the bank approved the loan and disbursed the money, the co-conspirators would then divide the profits from the seller’s proceeds.According to the indictment, the defendants aiding and abetting each other, knowingly made or cause to be made material false statements to various financial institutions for the purpose of influencing the action of other financial institutions, in connection with a loan application to obtain mortgage loans. The financial institutions are: Banco Santander de PR, Cooperativa de Ahorro y Crédito Oriental, Cooperativa Abraham Rosa, Doral Bank, First Bank of PR, Banco Bilbao Vizcaya Argentaria of PR, and RG Premier Bank of PR.
The defendants and their roles in the scheme are as follows:- Defendant Wilson Álvarez-Luna was an individual engaged in the business of purchasing and selling real properties. At times he recruited straw buyers for transactions included herein.
- Defendants Arístides Reyes-Ayala; Benjamín García-De Villalobos; Joel Rodríguez-Santiago; Vivette Rodríguez-Navedo; and Ivyleslie Caraballo-Pastrana, were loan officers and supervised loan officers who participated in the mortgage loan origination, processing and approval process in connection with some of the loans included in the indictment.
- Defendants Álvarez-Luna; Reyes-Ayala; Guillermo Castro, aka “Reynaldo Vanderhorst Meléndez;” Ramón Álvarez-Lombana; José Rosario-Ruiz, aka “Chino;” Benneth Dàvila-Ochoa; Moisés Rolón-Santiago; Orlando Pérez-Juarbe; Cesar Berroteran-Cadenas; Anny Raquel Reyes-Cruz; Gerardo Vergara-Ramírez; and Edwin Girald-Torres participated in real estate transactions as either seller or straw buyer and applied and obtained mortgage loans.
- Defendants Antonio Sotomayor-Ramírez and Henry Schettini-Gutiérrez were real property appraisers.
- Defendants Álvarez-Luna; Jesús Cuadrado-Rodríguez; Beker De Jesus-Eckardt; Ángel Daniel Bermúdez-Saez; Onix Morales-Torres; Berroteran-Cadenas; and José Cabrera-Beuchamp, aka “Pepe” acted as facilitators who would recruit straw buyers or refer properties and property owners to participate in some of the fraudulent loan transactions.
- Defendants Morales-Torres and José Cabrera-Beuchamp, aka “Pepe,”were real estate agents.
“This indictment demonstrates the commitment of the Department of Justice and the U.S. Attorney’s Office in Puerto Rico to ensure the integrity of the financial and banking system,” said Rosa Emilia Rodríguez Vélez, U.S. Attorney for the District of Puerto Rico. “The investigation and prosecution of financial crimes is one of the top priorities of the U.S. Department of Justice. Mortgage fraud is a serious issue for the banking industry and for homeowners who helplessly watch as their property values decrease, and foreclosure signs and abandoned properties take over their neighborhoods.”
Lester Fernàndez, Special Agent in Charge of this Region for the US Department of Housing and Urban Development – Office of Inspector General stated: “It is always disturbing when industry professionals who have fiduciary responsibilities and are expected to act as honest brokers exploit federally funded programs. HUD-OIG will continue to partner with prosecutors, law enforcement and audit agencies to aggressively pursue those engaged in activities that harm federal housing programs.”
Carlos Cases, Special Agent in Charge of the FBI said: “Mortgage fraud isn’t a victimless crime. It threatens the financial health of our communities, and leaves lenders burdened with bad loans and neighborhoods with abandoned and deteriorating property. FBI will continue to utilize its financial investigative expertise to aggressively investigate criminal activities that attack our financial system.”
This case is being prosecuted by Assistant U.S. Attorney Mariana Bauza. The case was investigated by U.S. Department of Housing & Urban Development Office of Inspector General (HUD-OIG), Federal Bureau of Investigation (FBI), Puerto Rico Office of the Commissioner of Financial Institutions, Puerto Rico Police Department, Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and the Puerto Rico Treasury Department, Tax Crime Division.
The maximum penalties for these offenses are 30 years of imprisonment, and fines of $1 million. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
23 Individuals Indicted and Arrested for False Statements in Loan Applications and Bank FraudRead the Press Release
Defendants face a forfeiture allegation of $5,394,104.00
San Juan, Puerto Rico – Twenty-three individuals, including street brokers, loan officers, realtors, appraisers, straw buyers and sellers have been charged in a 15-count indictment unsealed today and returned by a grand jury in San Juan, Puerto Rico on September 4, 2013, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico announced today. These charges stem from a scheme used by the defendants to obtain money from mortgage lending institutions.
The investigation revealed that false statements and documents were submitted to mortgage lending institutions to qualify straw buyers for mortgage loans. The false and fraudulent statements supplied by these defendants were: bank account statements, income tax withholding statements, rental contracts, certification forms, and employment certifications, to mention a few. Once the bank approved the loan and disbursed the money, the co-conspirators would then divide the profits from the seller’s proceeds.According to the indictment, the defendants aiding and abetting each other, knowingly made or cause to be made material false statements to various financial institutions for the purpose of influencing the action of other financial institutions, in connection with a loan application to obtain mortgage loans. The financial institutions are: Banco Santander de PR, Cooperativa de Ahorro y Crédito Oriental, Cooperativa Abraham Rosa, Doral Bank, First Bank of PR, Banco Bilbao Vizcaya Argentaria of PR, and RG Premier Bank of PR.
The defendants and their roles in the scheme are as follows:- Defendant Wilson Álvarez-Luna was an individual engaged in the business of purchasing and selling real properties. At times he recruited straw buyers for transactions included herein.
- Defendants Arístides Reyes-Ayala; Benjamín García-De Villalobos; Joel Rodríguez-Santiago; Vivette Rodríguez-Navedo; and Ivyleslie Caraballo-Pastrana, were loan officers and supervised loan officers who participated in the mortgage loan origination, processing and approval process in connection with some of the loans included in the indictment.
- Defendants Álvarez-Luna; Reyes-Ayala; Guillermo Castro, aka “Reynaldo Vanderhorst Meléndez;” Ramón Álvarez-Lombana; José Rosario-Ruiz, aka “Chino;” Benneth Dàvila-Ochoa; Moisés Rolón-Santiago; Orlando Pérez-Juarbe; Cesar Berroteran-Cadenas; Anny Raquel Reyes-Cruz; Gerardo Vergara-Ramírez; and Edwin Girald-Torres participated in real estate transactions as either seller or straw buyer and applied and obtained mortgage loans.
- Defendants Antonio Sotomayor-Ramírez and Henry Schettini-Gutiérrez were real property appraisers.
- Defendants Álvarez-Luna; Jesús Cuadrado-Rodríguez; Beker De Jesus-Eckardt; Ángel Daniel Bermúdez-Saez; Onix Morales-Torres; Berroteran-Cadenas; and José Cabrera-Beuchamp, aka “Pepe” acted as facilitators who would recruit straw buyers or refer properties and property owners to participate in some of the fraudulent loan transactions.
- Defendants Morales-Torres and José Cabrera-Beuchamp, aka “Pepe,”were real estate agents.
“This indictment demonstrates the commitment of the Department of Justice and the U.S. Attorney’s Office in Puerto Rico to ensure the integrity of the financial and banking system,” said Rosa Emilia Rodríguez Vélez, U.S. Attorney for the District of Puerto Rico. “The investigation and prosecution of financial crimes is one of the top priorities of the U.S. Department of Justice. Mortgage fraud is a serious issue for the banking industry and for homeowners who helplessly watch as their property values decrease, and foreclosure signs and abandoned properties take over their neighborhoods.”
Lester Fernàndez, Special Agent in Charge of this Region for the US Department of Housing and Urban Development – Office of Inspector General stated: “It is always disturbing when industry professionals who have fiduciary responsibilities and are expected to act as honest brokers exploit federally funded programs. HUD-OIG will continue to partner with prosecutors, law enforcement and audit agencies to aggressively pursue those engaged in activities that harm federal housing programs.”
Carlos Cases, Special Agent in Charge of the FBI said: “Mortgage fraud isn’t a victimless crime. It threatens the financial health of our communities, and leaves lenders burdened with bad loans and neighborhoods with abandoned and deteriorating property. FBI will continue to utilize its financial investigative expertise to aggressively investigate criminal activities that attack our financial system.”
This case is being prosecuted by Assistant U.S. Attorney Mariana Bauza. The case was investigated by U.S. Department of Housing & Urban Development Office of Inspector General (HUD-OIG), Federal Bureau of Investigation (FBI), Puerto Rico Office of the Commissioner of Financial Institutions, Puerto Rico Police Department, Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and the Puerto Rico Treasury Department, Tax Crime Division.
The maximum penalties for these offenses are 30 years of imprisonment, and fines of $1 million. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
23 Defendants Charged in Federal Court with Distribution of Heroin on Milwaukee's South SideRead the Press Release
The Office of the United States Attorney announced today that 23 defendants were indicted in federal court with cconspiracy to possess a controlled substance with the intent to distribute, more than 1kilogram heroin in violation of United States Code Sections 841(a)(1), and 841(b)(1)(A). If convicted each defendant faces between 10 years and life imprisonment, a $10,000,000 fine and a minimum of 5 years supervised release.
Name Age and ResidencyPraxedes Reyes-Burgos aka “Gordo”
35, Milwaukee
34, Milwaukee
Geraldo S. Reyes aka “Sapo”
38, Milwaukee
Jonathan R. Hernandez aka “Joey” aka “Yogi”
29, Milwaukee
Mike M. Hinz
62, Milwaukee
Juan Hernandez aka “Kiko”
47, Milwaukee
Luis A. Lopez
33, Milwaukee
Luz E. Reyes-Burgos aka “Betty”
45, Milwaukee
Luz Burgos
65, Milwaukee
Praxedes Reyes-Cruz
64, Milwaukee
Joel E. Lopez aka “Looney”
28, Milwaukee
Alfredo A. Hernandez III aka “Azteca” aka “Mexico”
32, Milwaukee
Israel Feliciano aka “Pigui”
47, Milwaukee
Christopher A. Malzhan
26, Ripon, WI
Alexis J. Reyes aka “Chino”
25, Milwaukee
Jesus Oquendo aka “Bobby”
24, Milwaukee
Angel L. Reyes aka “Tuto”
24, Milwaukee
Carmen R. Nieves
34, Milwaukee
Mirta Reyes
27, Milwaukee
Lidia Herrera-Diaz aka “Carmen”
38, Milwaukee
Christian Rivera
27, Milwaukee
Santiago Hernandez aka “Primo”
49, Chicago, IL
Carlos J. Manzanares
29, Chicago, IL
According to information released in court this is a large drug trafficking organization that has been selling cocaine and heroin on the south side of Milwaukee for many years. They are responsible for distributing multiple kilograms of heroin per month and it’s believed that one of the distributors may be responsible for at least one heroin overdose death. The leaders of the organization were Victor, Geraldo and Praxedes Reyes who are brothers. The Reyes brothers received their heroin primarily from Santiago Hernandez out of Chicago, though they did occasionally use other sources.
Today, law enforcement officers arrested 19 of the defendants (the other 4 were already in custody) and executed search warrants at seven separate locations. Seized in these search warrants was approximately $300,000 in US currency and five firearms. Over the last few weeks, officers have also seized over one kilogram of heroin.The defendants were charged based on a lengthy joint investigation by the Milwaukee Police Department and the Federal Bureau of Investigation (FBI) via the Milwaukee High Intensity Drug Trafficking Area (HIDTA) Drug Gang Task Force.
Law enforcement agencies that were involved in the search warrants and arrests today include: the Milwaukee Police Department, the Federal Bureau of Investigation, the Milwaukee County Sheriff’s Office, the South Milwaukee Police Department, the West Allis Police Department, the Wisconsin Department of Justice - Division of Criminal Investigations, the Wisconsin State Patrol, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, Homeland Security Investigations, the Internal Revenue Service, the United States Marshals Service, the Waukesha County Sheriff’s Office and the Milwaukee County District Attorney’s Office.
According to First Assistant United States Attorney Gregory J. Haanstad, “These charges, arrests, and seizures are a part of our continuing work to dismantle drug organizations that threaten the safety and security of neighborhoods in the Eastern District of Wisconsin and elsewhere. These efforts reflect the importance of ongoing collaboration between federal, state, and local law enforcement.”Chief Edward Flynn of the Milwaukee Police Department stated "the U.S. Attorney's Office and federal law enforcement have been valuable and reliable partners with the Milwaukee Police Department in reducing violent crime and drug trafficking in Milwaukee. Today's operation demonstrates their continued commitment to our partnership."
FBI Assistant Special Agent in Charge, Steven L. Conley said: “We will continue to work collaboratively and aggressively to bring these violent offenders to justice.”
This case is being prosecuted by Assistant U.S. Attorney Mario F. Gonzales.
An indictment or criminal complaint is a method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.
9 September 2013
White River Man Charged with Seven Counts of Aggravated Sexual Abuse of A Child, Abusive Sexual Contact, and Sexual Abuse of A ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that a White River, South Dakota, man has been indicted by a federal grand jury for seven counts of Aggravated Sexual Abuse of a Child, Abusive Sexual Contact, and Sexual Abuse of a Minor.
Shannon White Buffalo, age 46, was indicted on August 21, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 6, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is at least 30 years and up to life in custody and/or a $250,000 fine, at least 5 years and up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stem from alleged incidents that occurred between August 2010 and December 2013 when White Buffalo sexually abused three different child and minor victims in Mellette County. The charges are merely accusations and White Buffalo is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
White Buffalo was remanded to the custody of the U.S. Marshals Service pending trial. A trial has been set for October 22, 2013.Two Gang Members Sentenced in Dodge City Racketeering CaseRead the Press Release
WICHITA, KAN. - Two gang members have been sentenced to federal prison in connection with a federal racketeering case in Dodge City, U.S. Attorney Barry Grissom said today.
Joshua Flores, 25, Dodge City, Kan., was sentenced to 84 months in federal prison. He pleaded guilty to one count of brandishing a firearm in a crime of violence.
Hernan Quezada, 21, Dodge City, Kan., was sentenced to 33 months in federal prison. He pleaded guilty to one count of assault with a dangerous weapon, which was a violent crime in aid of racketeering.
In his plea, Joshua Flores admitted he was a member of the Los Carnales Chingones street gang affiliated with the Norteno street gang on June 8, 2009, when he and other gang members who were armed with firearms robbed a victim named Isidro Raleas-Velasquez and other persons.
The victims were at their home at 1005 Avenue E in Dodge City when Flores and three other men affiliated with the Nortenos broke into their residence armed with firearms. One of the Nortenos grabbed a victim, struck him in the head with a firearm and took him into another room. Flores joined the other Nortenos in going through the house looking for other residents to rob. The other Norteno beat the victim he took into the other room. During the robbery, Raelas-Velasquez was struck with a firearm in the head, causing a large laceration. After the robbery, Flores and the other Norteno gang members divided up the proceeds of the robbery.
In his plea, Hernan Quezada admitted he was a member of the Diablos Viejos (DV) street gang affiliated with the Norteno street gang when on Feb. 5, 2012, he assaulted a victim named Reyes Bocanegra. Quezada was at 1200 Avenue I in Dodge City when he got into a fight with Bocanegra’s brother, Oscar. The fight was soon joined by Reyes Bocanegra, aiding his brother, and two other DV gang members, aiding Quezada. Quezada struck Reyes Bocanegra in the head with a bottle, causing a laceration to the top of his head.
Flores and Quezada admitted that robberies, assaults and other crimes were part of the way Norteno gang members built their reputations and kept their rivals at bay.
Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff’s Office, the Kansas Bureau of Investigation, Assistant Aaron Smith and Assistant U.S. Attorney Lanny Welch for their work on the case.Two Convicted of Bank RobberyRead the Press Release
HOUSTON – Terrance Trent Batiste, 21, and Joshua Demond Clay, 28, both of Houston, have entered guilty pleas in relation to the November 2012 robbery of Amegy Bank in Houston, announced United States Attorney Kenneth Magidson. A third defendant - Kendrick Deswhan Castille, 19, also of Houston – previously also entered a guilty plea in the case.
On Nov. 7, 2012, at approximately 12:00 p.m., the Amegy Bank on 1502 Eldridge Parkway in Houston was robbed. Batiste, Castille and Clay were apprehended by Houston Police Department (HPD) officers a short distance from the bank following a pursuit.
The investigation revealed that Castille and Batiste entered the bank wearing baseball hats. Batiste was armed with a dark colored revolver which was given to him by Castille before they entered the bank. Castille and Batiste both jumped over the teller counter and demanded money from the victim teller. Clay did not enter the bank, but all three got back into their vehicle and fled after the robbery. After a pursuit by HPD, the vehicle carrying the defendants stopped into the Forest Park Cemetery, located at 12800 Westheimer in Houston, where it ran over and destroyed several tombstones. Clothing and hats worn by Batiste and Castille were recovered from the vehicle along with a large amount of U.S. currency.
All pleaded guilty to one count of conspiracy to commit bank robbery, for which each faces up to five years in federal prison and a possible $250,000 fine. Batiste and Castille were also convicted of aiding and abetting aggravated bank robbery for which they face up to 25 years in prison and another maximum $250,000 fine. Both also admitted to aiding and abetting the brandishing of a firearm during a crime of violence for which both will also face a minimum of seven years in prison which must be served consecutively to any other prison term imposed.
U.S. District Judge Kenneth Hoyt, who accepted all of the guilty pleas, has set Castille’s sentencing for Dec. 16, 2013, while Clay and Batiste will be sentenced Dec. 2, 2013, and Nov. 25, 2013, respectively.
All are in custody where they will remain pending their sentencing hearings.
The case was investigated by the FBI’s Bank Robbery Task Force and is being prosecuted by Assistant United States Attorney Jennie Basile.
Teacher Arrested on Federal Child Pornography ChargesRead the Press Release
HOUSTON – Derrick Gossett, 32, of Humble, has been arrested and charged with two counts of production of child pornography, announced United States Attorney Kenneth Magidson. At the time of the alleged offense, he was a music teacher at Anderson Elementary School in the Spring Independent School District (ISD).
Originally arrested on state charges, Gossett was taken into custody on these allegations on Friday, Sept, 6, 2013. He made his initial appearance just a short time ago, at which time U.S. Magistrate Judge George Hanks ordered him into custody pending further criminal proceedings. He is set for a counsel determination hearing Wednesday, Sept. 11, at 10:00 a.m. before Judge Hanks.
According to the criminal complaint filed on Sept. 6, Gossett allegedly used a Facebook profile in an effort solicit sexually explicit photographs that constituted child pornography from young males. The complaint further alleges he used images he received from at least one victim in an effort to extort additional images.
Authorities obtained a search warrant for Gossett’s residence, at which time a laptop computer, several thumb drives, cell phones and digital cameras were seized. One external portable hard drive, found in a lock box inside Gosset’s residence, was forensically analyzed and is alleged to contain more than 150 files with images depicting different young males, ranging in age from I 2 to I 7 years old and in various stages of undress.
The case was investigated by the Harris County Precinct 4 Constables Office, Homeland Security Investigations and the Houston Metro Internet Crimes Against Children Task Force with the assistance of the Spring ISD Police Department. The matter was brought as part of as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case is being prosecuted by Assistant United States Attorney Sherri L. Zack.
A defendant is presumed innocent unless convicted through due process of law.St. Francis Man Charged with Assault with A Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Westlee Ford, age 20, was indicted on August 21, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 6, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stem from an incident that occurred in June 2013 when Ford allegedly stabbed the victim in the chest, back, shoulder, and arm with a knife. The charges are merely accusations and Ford is presumed innocent until and unless proven guilty.The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Ford was released to a third party custodian pending trial. No trial date has been set.Six Men Sentenced to Lengthy Terms for Abducting 19-Year-Old College StudentRead the Press Release
Leader Gets Nearly 23 years
McALLEN, Texas – Six Mexican Nationals convicted of hostage taking and conspiracy to commit hostage taking of a college student have been sentenced to significant federal prison terms, announced United States Attorney Kenneth Magidson.
Today, U.S. District Judge Randy Crane, who accepted all the guilty pleas, sentenced Roman Rivera-Guillen, 33, Jose Molina, 24, Alfonso Ivan Villasana, 20, Israel Flores Jr., 21, Julio Cesar Fernandez, 25, and Bernardino Sanchez, 23, for their roles in the hostage taking. The court noted that Rivera-Guillen was a leader in the conspiracy and sentenced him to 270 months in federal prison, while Molina, Villasana, Flores, Fernandez and Sanchez, received respective terms of 210, 144, 210, 234 and 210 months imprisonment. As non-U.S. citizens, all are expected to face deportation proceedings upon their release from prison.
According to the record of the case, on Nov. 7, 2012, officers with the McAllen Police Department (MPD) responded to a kidnapping at an apartment in McAllen. The complainant informed the officers that his 19-year-old son had been kidnapped from the apartment at which time they found signs indicating the front door of the apartment had been kicked in.
Family members of the victim received a ransom demand of $700,000 for the safe return of the victim or else he would be injured. The investigation led to the arrest and apprehension of all five individuals who admitted to taking the victim from his apartment at gunpoint. However, the men no longer had the victim and had handed him over to another individual. The victim was released, unharmed, on Nov. 8, 2012.
After hearing the arguments from both the government and defense counsel in federal court today, Judge Crane handed down the prison terms for each man for seizing, detaining and threatening to kill, injure and continuing to detain the victim in order to compel his family to pay a sum of money as an explicit condition for his release. The court took into account the extent of each defendant’s involvement in the hostage taking, noting that Rivera-Guillen was the leader of the criminal venture.
All six men have been held without bond and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the FBI and FBI Safe Street Task Force with assistance from MPD. Assistant United States Attorneys Leo J. Leo III and Kristen Rees are prosecuting the case.
Shreveport Man Sentenced for Illegally Transporting Deer in East TexasRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 57-year-old Shreveport, LA, man has been sentenced to pay over $14,000.00 in restitution and serve 48 hours of community service as conditions of a two year probated sentence for federal wildlife violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Stephen Anderson Sipes Jr. pleaded guilty on June 10, 2013, to negligent transportation of wildlife and was sentenced today by U.S. Magistrate Judge John D. Love.
According to information presented in court, Sipes had an ownership interest in a high-fence ranch in Sanderson, Texas. On Jan. 14, 2010, Sipes transported and possessed 14 live, illegally imported whitetail deer valued at over $350.00 each from Carthage, Missouri to the ranch in Sanderson, which is prohibited by Texas law. The fair market value of the illegally imported whitetail deer was approximately $5,650.00.Sipes must pay $14,016.49 in restitution to the Texas Parks and Wildlife Foundation to compensate the agency for costs incurred in protecting the native deer from the threat of disease carried by the Missouri whitetails.
This case was investigated by the Special Operations Unit of the Texas Parks and Wildlife and U.S. Fish and Wildlife Service and prosecuted by Assistant U.S. Attorney Jim Noble.
Rosebud Woman Sentenced for Assault by Striking, Beating and Wounding and Simple AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman convicted of Assault by Striking, Beating and Wounding and Simple Assault was sentenced on September 6, 2013, by U.S. Magistrate Judge Mark A. Moreno.
Myra Ree, a/k/a Myra Iron Shell, age 24, was sentenced to 18 months of probation and a $20 special assessment to the Federal Crime Victims Fund.
Ree was indicted by a federal grand jury on May 15, 2013, and pled guilty on September 6, 2013.
The conviction arose from a physical fight that took place on January 28, 2013, between Ree and the victim. Ree struck the victim and then bit him on the face and the arm, wounding him. When examined by law enforcement, the victim had large bite marks, one of which drew blood. The victim and Ree are domestic partners.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.Rosebud Man Charged with Assaulting and Resisting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury on two counts of Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
Lawrence Gary, age 36, was indicted on June 12, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 6, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to an alleged incident that occurred in July 2012 when Gary resisted arrest by Rosebud Sioux Tribal Officers by refusing to exit his vehicle and then charging and head butting an officer in the chest. The charges are merely accusations and Gary is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie Ruettgers is prosecuting the case.
Gary was remanded to the custody of the U.S. Marshals Service pending trial. Trial has been set for November 5, 2013.Renee Rachelle Voorhis Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on September 9, 2013, before U.S. District Judge Sam E. Haddon, RENEE RACHELLE VOORHIS, a 28-year-old resident of Billings, was sentenced to a term of:
Prison: 18 months
Special Assessment: $100
Restitution: $80,185
Supervised Release: 3 years
VOORHIS was sentenced in connection with her guilty plea to Social Security fraud.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
VOORHIS was married to Nicholas Edgerley. VOORHIS and Edgerley had a child - A.E. in 2004. Edgerley died on June 17, 2005. On August 23, 2005, VOORHIS applied for Old Age Survivor Disability Insurance (OASDI) benefits from the Social Security Administration (SSA) on behalf of her child. The application was based on the death of the child's father. VOORHIS also applied to serve as the child's representative payee for OASDI benefits. On September 2, 2005, the SSA awarded the child OASDI benefits and designated VOORHIS as the child's representative payee.
During the application process, the SSA advised VOORHIS of all of her legal obligations regarding events affecting eligibility to OASDI benefits for her child. VOORHIS was provided a written copy of her legal obligations. The SSA annually sent out correspondence again advising VOORHIS of each of her legal obligations with respect to her child's benefits. VOORHIS was required to and did complete annual accounting forms which were intended to account for how the OASDI benefits were used and to certify that her child was still in her care and custody.
On February 1, 2012, VOORHIS's father, told the SSA that he and his wife had been raising VOORHIS's child since October 2005 and were receiving no financial assistance from VOORHIS.
On February 14, 2012, VOORHIS's parents were interviewed by law enforcement. Both indicated they were aware their daughter was receiving OASDI benefits on her child's behalf. VOORHIS initially assisted them financially with the child's care - approximately four months, November 2005 to February 2006. On several occasions, they asked VOORHIS about receiving the child's OASDI benefits to aid in the child's care. VOORHIS threatened to remove the child from her parents custody when questioned about the OASDI benefits. VOORHIS's parents indicated that she was a drug addict and in and out of jail since the child began living with them.
On July 19, 2012, VOORHIS was interviewed by law enforcement. VOORHIS confessed that she knew her legal reporting obligations regarding collecting OASDI benefits on behalf of her child. VOORHIS confessed she initially gave four months of benefits to her parents and then stopped. VOORHIS stated that she used the funds to pay for her living expenses and to support her drug habit. VOORHIS confessed to concealing that she was not caring for or in custody of her child by falsifying and submitting SSA representative accounting forms in 2007 and 2008 to 2011.
The total overpayment by SSA to VOORHIS for her child was $82,730. The amount takes into account the four months of payments VOORHIS forwarded to her parents initially for the child's care.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that VOORHIS will likely serve all of the time imposed by the court. In the federal system, VOORHIS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Criminal Investigation Division of the Internal Revenue Service.
Portsmouth Man Sentenced for Armed Robbery SpreeRead the Press Release
NORFOLK, Va. – Jonathan Ray Allen, 28, of Portsmouth, Va., was sentenced today to 384 months in prison, followed by five years of supervised release, for conspiracy, robbery and firearm charges.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia and Royce E. Curtin, Special Agent in Charge, Federal Bureau of Investigation Norfolk Office, made the announcement after sentencing by United States District Judge Raymond A. Jackson.
Allen was found guilty by a federal jury of all charges on March 23, 2012. The charges included a conspiracy count, nine substantive robbery counts and nine gun counts. According to court documents, between May and June 2011, Allen and several co-conspirators, robbed at gunpoint a number of check cashing establishments and other business establishments, including a Foot Locker Store and Beauty supply shop. Allen was charged with nine armed robberies. Allen’s co-defendants pled guilty and agreed to cooperate while Allen went to trial. During the trial, 19 victims were able to identify Allen in court as the person who robbed them at gun point.
This case was investigated by Federal Bureau of Investigation, Norfolk Office. Assistant United States Attorney William Muhr and Special Assistant United States Attorney Amy Cross prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.