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9 September 2013
Oxnard Man Who Kidnapped Former Girlfriend and Threatened to Kill Her in Mexico Is Sentenced to over 24 Years in Federal PrisonRead the Press Release
LOS ANGELES – A Ventura County man who kidnapped his former girlfriend and drove her to Mexico while threatening to kill her and dump her body was sentenced this morning to 293 months in federal prison.
Rudy Soto, 26, of Oxnard, was sentenced by United States District Judge Otis D.
Wright II.Soto was convicted following a week-long jury trial in July 2012 of conspiring to kidnap and kidnapping. The evidence at trial showed that after a heated exchange between Soto and the victim on September 14, 2010, Soto traveled from Oxnard to the victim’s residence near downtown Los Angeles. When the victim refused to accompany him, Soto carried and dragged the victim, who was screaming and kicking him, to a waiting truck that was being driven by co-defendant Erin Nicole Fisher, 22. Soto, using the weight of his body, pinned the victim to the front passenger seat while Fisher drove the vehicle to Mexico.
During this drive, Soto told the victim he was taking her to Mexico, where she was going to die. Soto also contacted the victim’s family and advised her brother-in-law that he was taking the victim to Tijuana and would dump her there. When the victim tried to fight or escape, Soto held a knife to her throat and threatened to kill her.
Eventually, the victim accepted that she was going to be killed, and gave up trying to fight Soto and escape. During her testimony, she told the jury: “I was tired, and I just resigned myself. And I said if he is going to kill me, let him kill me.”At the Otay Mesa checkpoint at the United States-Mexico border, Mexican authorities stopped the pickup truck, which prompted the victim to scream for help. After telling Mexican authorities about her plight and being threatened with a knife, Mexican authorities detained Soto, Fisher and the victim. After the victim was examined by a
Mexican army physician, she was released. Agents with United States Customs and
Border Protection helped return her to the United States.“To carry out his plan, [Spoto] physically restrained her, struck her, terrorized her, and threatened to kill her with a knife that he brandished,”prosecutors wrote in a sentencing memo. “In addition, he psychologically tortured the victim, playing on her emotions and the nature of their tumultuous relationship.”
Fisher is being prosecuted separately and is participating in a court-ordered diversionary program.
This case was investigated by the Federal Bureau of Investigation, which received substantial assistance from the U.S. Department of Justice’s Office of
International Affairs, U.S. Customs and Border Protection, the Los Angeles Police
Department, the FBI’s Legal Attache in Mexico City, and officials with the Justice
Department and the State Department assigned to the United States Embassy in
Mexico.Mexican authorities provided considerable assistance during this investigation, including the Secretaría de Marina - Armada de México (the Mexican Navy); the
Secretaría de la Defensa Nacional (the Mexican Army); and the Procuraduría General de la República (the Mexican Attorney General).Release No. 13-112
Oklahoma Man Pleads GuiltyTo Robbing Cherokee County BankRead the Press Release
WICHITA, KAN. - An Oklahoma man has pleaded to robbing a bank in Cherokee County, Kan., U.S. Attorney Barry Grissom said today.
Thomas Hass, 44, Quapaw, Okla., pleaded guilty to one count of bank robbery. In his plea, he admitted that on July 22, 2013, he robbed the American Bank at 901 E. 7th Street in Galena, Kan. He entered the bank and asked a teller for a mortgage application form. Then he pulled a gun and said, “Give me all your money.” The tellers did not know that the weapon was a pellet gun that shoots rubber pellets. Hass was arrested after police released surveillance photos and received a tip leading them to him. Hass had approached a woman and told her that he recently had obtained a large amount of money and he wanted to take her to Las Vegas.Sentencing is set for Nov. 25. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000.
Grissom commended the Galena Police Department, the FBI and Assistant U.S. Attorney Alan Metzger for their work on the case.
North Ogden Couple Pleads Guilty for Tax Fraud SchemeRead the Press Release
SALT LAKE CITY – Husband and wife Robert Watson, 54, and Marie Watson, 52, pleaded guilty in federal court in Salt Lake City in connection with a tax fraud scheme arising out of their operation of the Teazers Sports Bar & Grill in Ogden, Utah.
U.S. Attorney David B. Barlow for the District of Utah and Special Agent in Charge Paul A. Camacho of the Internal Revenue Service-Criminal Investigation (IRS-CI) Las Vegas Field Office made the announcement.
Robert Watson pleaded guilty Wednesday to two counts of filing false tax returns – one a corporate return and one a personal return. He faces a maximum penalty of three years in prison and a fine of $100,000. Marie Watson pleaded guilty to one count of filing a false personal tax return and also faces a maximum penalty of three years in prison and a fine of $100,000. The Watsons will be sentenced on Jan. 10, 2014.
According to the indictment and other publicly filed documents, during the time the Watsons owned and operated Teazers, they failed to report substantial cash income on Teazers’ corporate returns and on their personal tax returns. Teazers generated large amounts of cash income from entrance fees known as “cover charges” charged at the door of the bar and from other items in the bar such as pool tables and video games. The Watsons deliberately hid this cash income from their tax preparer and caused tax returns to be filed with the IRS that grossly understated their true income.
The Watsons’ guilty pleas involved false returns arising out of this scheme for tax year 2007. According to the publicly filed plea documents, Robert Watson could owe the IRS as much as $221,290 in back taxes, and Marie Watson could owe as much as $114,942. The final amount owed to the IRS will be determined at sentencing.
This case is being investigated by the IRS-CI Las Vegas Field Office. The case is being prosecuted by Assistant U.S. Attorney Jason R. Burt for the District of Utah.
Newton County Man Sentenced for Killing Bald Eagle on Nanih Waiya Wildlife Management AreaRead the Press Release
JACKSON, Miss. - Marcus Tyler Cochran, 21, of Decatur, Mississippi, pled guilty in U.S. Magistrate Court on September 4, 2013, to shooting a mature bald eagle in violation of the Bald and Golden Eagle Protection Act, announced U.S. Attorney Gregory K. Davis, Luis Santiago, Special Agent in Charge of the U.S. Fish and Wildlife Service, and Steve Adcock, Chief of Law Enforcement for Mississippi Department of Wildlife, Fisheries, and Parks.
Cochran shot the bald eagle while duck hunting on the Nanih Waiya Wildlife Management Area in Neshoba County on December 2, 2012. Following his guilty plea, Cochran was ordered to pay a fine in the amount of $2,500. He was also placed on probation for a period of two years, during which time Cochran will be prohibited from hunting in any manner or at any hunting camp or campsite at any time. In addition, Cochran was ordered to forfeit the firearm used in the commission of the offense.
“The protection of Mississippi’s wildlife, including the national bird of the United States, is a priority of the U. S. Attorney’s office for the Southern District of Mississippi,” said U.S. Attorney Gregory K. Davis. “Today’s prosecution demonstrates that individuals who participate in the senseless killing of bald eagles and other migratory birds will be investigated, prosecuted and punished accordingly.”
United States Fish and Wildlife Service Special Agent in Charge Luis Santiago stated “We take our mission working with the Mississippi Department of Wildlife, Fisheries, and Parks and the citizens of Mississippi in conserving, protecting, and enhancing fish, wildlife, plants and their habitats very seriously by investigating those who choose to violate state and federal laws. They undermine the proud tradition of hunting for all hunters.”
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Help us combat the proliferation of sexual exploitation crimes against children.
New York Man Pleads Guilty to $1 Million ATM Skimming Scheme Targeting Tri-State Bank CustomersRead the Press Release
NEWARK, N.J. – A Romanian national and Queens, N.Y., resident today admitted to a scheme to steal account information from bank customers throughout New Jersey, New York and Connecticut by installing secret card-reading devices on ATMs, U.S. Attorney Paul J. Fishman announced.
Constantin Ginga, 52, pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Ginga has been held without bail since his arrest on Jan. 13, 2013.
To date, nine other individuals have been charged with a related conspiracy, which stole millions of dollars from unsuspecting customers.
According to documents filed in this and related cases, as well as statements made in court:
During his guilty plea, Ginga admitted that he and fellow conspirators installed skimmers and pinhole cameras at bank ATMs. The devices were installed on multiple ATMs in New Jersey and Connecticut. Each skimmer, an electronic device, would read and record identity and account information contained in the magnetic strip of a customer’s ATM card. The pinhole camera secretly recorded bank customers’ keystrokes as they entered their personal identification numbers. Ginga admitted that he and other conspirators went back to collect the devices containing the recorded information.
Ginga acknowledged that after the stolen customer account and identification information had been loaded onto blank ATM cards, he and his conspirators used those cards to take approximately $985,000 from Citibank ATMs in New Jersey, New York and Connecticut.
The charges to which Ginga pleaded guilty arose from a larger investigation into a skimming scheme that targeted customers in the tri-state area in 2012 and early 2013. Together, the schemes cost a number of banks a total of approximately $5 million in cash stolen from their customer accounts.
Of the nine others charged in relation to the wider scheme, all Romanian nationals who lived in Queens, eight are in custody. The leaders of the scheme, Marius Vintila, 31, and Bogdan Radu, 30, were charged by criminal complaint on July 10, 2013. Vintila and Radu designed and created the actual skimming devices and pinhole cameras and recruited individuals, including Ginga, to install them on bank ATMs.
Other charged conspirators, including Ginga, Marius Cotiga, 35, Ioan Leusca, 30, Dezso Gyapias, 28, Constantin Pendus, 29, Emil Revesz, 30, Florin Apetrei, 18 and another individual charged as “FNU LNU” (name unknown)installed the devices designed by Vintila and Radu onto bank ATMs and used fraudulent ATM cards to steal millions of dollars. They used hats, jackets, scarves and sunglasses to disguise themselves while installing the devices and while using the cards to withdraw money.
Ginga, Cotiga, Leusca, Gyapias, Pendus, Revesz, Apetrei, and Radu are in custody and being held without bail. Vintila and the unnamed individual remain at large.
The bank fraud conspiracy charge to which Ginga pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine. The aggravated identity theft charge carries a mandatory, consecutive penalty of two years in prison and a maximum $250,000 fine. Sentencing is currently scheduled for Dec. 18, 2013.
U.S. Attorney Fishman praised special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge James Mottola, along with special agents of Immigration and Customs Enforcement, Homeland Security Investigations in Newark, under the direction of Andrew M. McLees, with the investigation.The government is represented by Assistant U.S. Attorneys Rahul Agarwal and David Eskew of the U.S. Attorney’s Office Criminal Division in Newark.
As for the defendants charged in pending complaints, the charges and allegations are merely accusations, and the defendants are considered innocent unless and until proven guilty.
13-360
Defense counsel:Warren Sutnick Esq., Hackensack, N.J.
Ginga Information
New York Immigration Judge Participates in Naturalization CeremonyRead the Press Release
NEW YORK -- Immigration Judge Terry A. Bain from the Executive Office for Immigration Review, New York Immigration Court, delivered the keynote speech and administered the oath of allegiance to approximately 150 candidates during a naturalization ceremony at 26 Federal Plaza in New York on September 6, 2013. The New York District Office of U.S. Citizenship and Immigration Services, Department of Homeland Security, hosted the ceremony.
Biographical Information
Attorney General Janet Reno appointed Judge Bain in February 1994. Judge Bain received a bachelor of arts degree in 1973 from George Washington University, and a juris doctorate in 1980 from Brooklyn Law School. From 1986 to 1994, she worked as an attorney for Whitman, Breed, Abbott & Morgan in New York. From 1981 to 1986, she worked in private practice with Barst & Mukamal in New York. Judge Bain is a member of the New York State Bar.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration ReviewNew Special Agent in Charge to Lead IRS Criminal Investigation, Cincinnati Field OfficeRead the Press Release
Kathy A. Enstrom has assumed the position of Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), Cincinnati Field Office, a position to which she was appointed by the Chief, Criminal Investigation, Richard Weber, in August 2013.
An 18-year veteran of IRS-CI, Ms. Enstrom began her career in 1995 with IRS-CI in as a student Special Agent in Cedar Rapids, Iowa. Ms. Enstrom was promoted to Special Agent in 1996 and transferred to Chicago, Illinois. During her field assignments, Ms. Enstrom worked various income tax, money laundering and Bank Secrecy Act investigations. Specifically, she was assigned to the Chicago High Intensity Financial Crimes Area Task Force.
Immediately prior to her assignment in Cincinnati, Ms. Enstrom served as a Supervisory Special Agent in Milwaukee, Wisconsin where she supervised agents and support staff in the Green Bay and Milwaukee offices. In 2010, Ms. Enstrom was selected for the Deputy Attaché position in Ottawa, Canada. While in Canada, Ms. Enstrom assisted Special Agents in retrieving information from Canadian authorities, businesses and individuals and developing financial investigations with International connections.
In 2011, Ms. Enstrom was selected as a participant in an IRS pilot program called the Accelerated Senior Leadership Program. This program is designed to accelerate the development and advancement of leaders with the ability, engagement and aspirations to become a Senior Leader or Executive within IRS-CI. As part of this program, Ms. Enstrom was detailed to Refund Crimes in Headquarters as a Senior Analyst. While in Refund Crimes, Ms. Enstrom was the National Return Preparer Program Coordinator, established the IRS-CI Identity Theft Clearinghouse and assisted in the development of the Identity Theft Disclosure Waiver Program. In May 2012, Ms. Enstrom was assigned to the Los Angeles Field Office as the Assistant Special Agent in Charge where she oversaw six groups in the Los Angeles and San Bernardino area.
Ms. Enstrom is a native of Marion, Iowa. She graduated from Mount Mercy University in Cedar Rapids, Iowa in 1996 with a Bachelor’s degree in Accounting and Business Administration. Ms. Enstrom completed her MBA in 2008 at Cardinal Stritch University located in Milwaukee, Wisconsin. Ms. Enstrom is married to Jim Enstrom.
IRS-CI Cincinnati Field Office covers the entire State of Ohio, and includes Posts of Duty in Cincinnati, Dayton, Columbus, Cleveland, Independence, Akron/Canton, and Toledo.
Kathy Enstrom, Special Agent in Charge, IRS, Criminal Investigation, stated, “As forensic accountants, IRS-CI Special Agents are known for their ability to 'follow the money'”. I am committed to making a difference and my office will use all of its resources in order to aggressively investigate individuals and businesses who commit income tax fraud, as well as, those who conspire to conceal their criminal activities.”
Ms. Enstrom is responsible for planning, directing, and evaluating activities of IRS-CI employees in the Cincinnati Field Office. The mission of IRS-CI is to serve the American public by investigating potential criminal violations of the Internal Revenue Code and related financial crimes in a manner that fosters confidence in the tax system and compliance with the law. IRS-CI’s top law enforcement priorities are outlined in the CI Compliance Strategy which is designed to promote tax compliance. IRS-CI’s Program Strategy is comprised of three independent programs: Legal Source Tax Crimes; Illegal Source Financial Crimes; and Narcotics Related Financial Crimes. IRS-CI must investigate and assist in the prosecution of those significant financial investigations that will generate the maximum deterrent effect, enhance voluntary compliance, and promote public confidence in the tax system.
Millington Man Michael A. Lilley Charged with Sex Trafficking of High School TeensRead the Press Release
Memphis, TN – Michael A. Lilley, 49, of Millington, TN was charged today in a criminal complaint with sex trafficking of minor girls from as many as three high schools in West Tennessee, announced U.S. Attorney Edward L. Stanton III and A. Todd McCall, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation.
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According to facts revealed in a sworn affidavit filed with the complaint, Lilley was recruiting girls as young as 15 years old to work as prostitutes at his home in Millington. Lilley and another individual would provide alcohol and drugs for the girls, who would hang out at an enclosure in his back yard referred to as the “back house.”
One of the victims told authorities that Lilley would bring men to his home for the purpose of engaging in prostitution with the girls. The men paid $60 or $75 per session with the girls, and Lilley gave the girls approximately $30 per customer.
Another victim told authorities that she had sex with men at Lilley’s home, at the homes and trailers of men Lilley set her up to meet, and in a van owned by Lilley while parked in parking lots of various restaurants.
The girls were recruited out of various high schools by a minor boy who advised authorities that he had been working for Lilley for six months. He was paid $20 out of every $100 made by the girls.
Officials first became aware of Lilley’s actions when one of the girls confided what was going on to the school crisis counselor at one of the high schools. The counselor then reported it to the Shelby County Sheriff’s Office.
“The activities alleged in the sworn affidavit, if proven to be true, are reprehensible,” said U.S. Attorney Stanton. “This office remains committed to working with our law enforcement partners to prosecute and bring to justice anyone who exploits children for profit.”
Lilley is scheduled for a detention hearing on Thursday, September 12, 2013. If convicted he faces a minimum of 10 years in prison and a maximum of up to life in prison on each charge.
This case is being investigated by the FBI. Executive Assistant U.S. Attorney Larry Laurenzi and Assistant U.S. Attorney Deb Ireland are representing 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."
The charges and allegations contained in the criminal complaint and the affidavit are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Michigan Man Convicted of Traveling to Laredo to Engage in Illicit Sexual ConductRead the Press Release
LAREDO, Texas – Douglas Alan Butler, 54, a U.S. citizen from Michigan, has entered a guilty plea to traveling in interstate commerce for the purpose of engaging in illicit sexual conduct, announced United States Attorney Kenneth Magidson.
According to the record, Butler started communicating with an undercover officer posing as a 15-year-old female by way of a local chat room. Communication started on March 28, 2013, and lasted for approximately a month until the date of his arrest, April 23, 2013.
During the communication, Butler had engaged in conversations that were sexually illicit in nature. Particularly, Butler indicated that he “could teach her so many things.” Additionally, Butler advised that he had plans of traveling to Laredo and expressed a desire to meet her.
Butler had made arrangements to meet the deputy whom he believed to be the minor female at a local city park and promised to bring a “sex toy” during that encounter. He was arrested upon arrival at that park, at which time a pink vibrator was discovered in his car. A subsequent search of his hotel also resulted in the discovery of 13 condoms and 18 Viagra pills.
Butler faces up to 30 years in federal prison and a maximum $250,000 fine at the time of his sentencing, which will be scheduled for a later date by U.S. District Judge Diana Saldana.
The case was investigated by Homeland Security Investigations and the Webb County Sheriff’s Office and is being prosecuted by Assistant United States Attorney Suntrease Williams.
Mexican Sex Offender Sentenced for Failing to Register as a Sex OffenderRead the Press Release
United States Attorney Deborah R. Gilg announced that Bernardo Williams-Jauraqui was sentenced in federal court in Omaha for failing to register as a sex offender. The Honorable Laurie Smith Camp sentenced Williams-Jauraqui to 21 months in prison. After his release from prison Williams-Jauraqui will begin a 5 year term of supervised release.
Bernardo Williams-Jauraqui was convicted on March 15, 2005, of Third Degree Sexual Assault in Douglas County, Nebraska. After sentencing, he was released to Immigration and Customs Enforcement for deportation. Before he was deported, he signed his Nebraska Notification of Sex Offender Registration Responsibilities Form acknowledging his requirement to register as a sex offender until 2020. Williams-Jauraqui was deported to Mexico in December 2005, April 2006 and again in April 2008.
Bernardo Williams-Jauraqui was convicted in September 2007 for failing to register as a sex offender. He was then using the alias Jesus Salas.
On September 26, 2011, Bernardo Williams-Jauraqui was arrested by the Ralston Police Department for Driving Under Suspension. He was using the alias Ebaristo Casanova-Iniguez. Investigation by the United States Marshals Service determined that Williams-Jauraqui was working for a construction company under the name Moises Medina.
Bernardo Williams-Jauraqui had not registered his residence or employment with the Nebraska Sex Offender Registry upon returning to Nebraska. The Marshals Service obtained a complaint and warrant, but Williams-Jauraqui left Nebraska.
On February 1, 2013, Bernardo Williams-Jauraqui was arrested near Nogales, Arizona attempting to illegally enter the United States. He was interviewed by Deputies of the United States Marshals Service on February 5, 2013. He admitted that he was convicted of Third Degree Sexual Assault, was deported and returned to the United States. He admitted working at King Contracting in Lincoln from 2009-2011. He left upon learning that the Marshals Service was investigating him and returned to Mexico. He further acknowledged signing the Sex Offender Responsibilities Form and indicated he was aware of his duty to register as a sex offender.
The case was prosecuted as a part of Project Safe Childhood. Project Safe Childhood is an initiative of the United States Department of Justice designed to protect children from individuals who would exploit them online or offline and includes individuals who travel in interstate commerce and fail to register as sex offenders as required by law. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Maryland Man Found Guilty of Obstruction of JusticeRead the Press Release
For Threatening Witness in Confrontation on Street
Witness Was Murdered Weeks Later; Slaying Remains Under InvestigationWASHINGTON – Antoine Mayhand, 20, of Capitol Heights, Md., was found guilty by a jury today of obstruction of justice for confronting a witness in a criminal case that was pending at the time against his brother, U.S. Attorney Ronald C. Machen Jr. announced.
The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Stuart G. Nash scheduled sentencing for Nov. 15, 2013.
At trial, the government’s evidence established that on Dec. 11, 2012, Christopher Ballard reported to the police that two men had tried to steal his car and then, when he resisted, shot at him. Mr. Ballard informed the police that he knew one of the assailants as “Unc.” Detectives with the Metropolitan Police Department (MPD) conducted an investigation, and Mr. Ballard identified a man named Delonte Smith as “Unc.”
As a result, on Jan. 30, 2013, Smith was arrested, charged with armed carjacking, and ordered held without bond pending trial. Smith and Mayhand are brothers. They grew up in and frequented the Benning Park area of Southeast Washington, which is where Mr. Ballard lived.
On May 28, 2013, at about 7:15 a.m., Mayhand encountered Mr. Ballard on Benning Road SE. Mayhand said, “I should put a knife on you and stab you!” Mr. Ballard called 911 and reported the threat while he walked up Benning Road to the Sixth District police station. During the following 17 minutes, Mr. Ballard stayed on the line with the dispatcher and Mayhand followed Mr. Ballard down the street. Moments before the police arrived on scene, Mayhand charged at Mr. Ballard as if he was going to assault him. When the police officers stopped Mayhand, and asked him what was going on, he responded, “Man, I don’t have time to f--- with that snitch!” He also told police that Mr. Ballard “got my brother locked up over some bull---.”
The criminal case against Mayhand stemmed from the May 28, 2013 confrontation. Mayhand has been in custody since his arrest that day.
On July 8, 2013, less than 48 hours before he was scheduled to testify in the trial against Delonte Smith, Mr. Ballard, 38, was murdered in Southeast Washington. Smith, 20, was nonetheless convicted of conspiracy to commit a crime of violence, two counts of assault with a dangerous weapon, and multiple related firearms offenses. He is awaiting sentencing.
The murder of Mr. Ballard is under investigation and no arrests have been made.
In announcing the verdict, U.S. Attorney Machen recognized the outstanding efforts of the detectives and officers from the Metropolitan Police Department who investigated the case. He also acknowledged the efforts of Supervisory Paralegal Specialist Anthony Griffith as well as Paralegal Specialists Antoinette Sakamsa and Theresa Nelson. Finally, he commended the work of Assistant U.S. Attorney Peter Lallas, who prosecuted the case.
13-310Mansfield Man Found Guilty of Role in $1.3 Million Mortgage FraudRead the Press Release
A Mansfield man was found guilty of more than two dozen charges in connection with a mortgage fraud scheme which caused approximately $1.3 million in losses to Geauga Savings Bank, J.P. Morgan Chase Bank, Washington Mutual Bank, Interbaby Funding, LLC, and Suntrust Mortgage, Inc, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
David R. Sharrock, age 71, pleaded no contest to 26 counts, including conspiracy, bank fraud, wire fraud, bankruptcy fraud and making false statements.
His daughter, Rhonda J. McElroy, 51, of Bellville, Ohio, also was found guilty for her role in the conspiracy.
Defendants Ronald L Kightlinger, 51, of Crestline, Ohio, and Richard W. Balliett, 45, of Bucyrus, Ohio, previously pleaded guilty to crimes related to their roles.
Sharrock, Balliett, and McElroy sold homes in the cities of Mansfield, Marion, Galion, Plymouth, Shelby, and Bucyrus, Ohio. The sellers made fraudulent misrepresentations to the mortgage lenders by providing undisclosed down payment assistance to the buyers and by submitting fictitious purchase agreements and verifications of deposits. As a result, the sellers signed false settlement statements at closing, according to court documents.
Kightlinger acted as a straw buyer in purchasing a commercial building from David R. Sharrock in Mansfield, according to court documents.
This case is being prosecuted by Assistant United States Attorneys Vasile C. Katsaros and M. Kendra Klump, following an investigation by the Federal Bureau of Investigation.
Man Who Was Arrested After Standoff in Hutchinson Sentenced to Federal Prison on Firearm ChargeRead the Press Release
WICHITA, KAN. - A Wichita, Kan., man who was arrested in Hutchinson in January after a standoff with police has been sentenced to 10 years in federal prison, U.S. Attorney Barry Grissom said today.
Justin L. Wolke, 30, Wichita, Kan., pleaded guilty to one count of unlawful possession of a stolen firearm. In his plea, he admitted that on Jan. 9, 2013, he fled when police officers attempted to stop his car. There was a warrant for his arrest on a parole violation charge. He ran into a residence at 806 N. Monroe in Hutchison. After a standoff lasting several hours, he was arrested. Police seized a rifle from him. They determined the rifle, a Romarm/Cugir, 7.62 x 39, was reported stolen from a residence in Wichita in October 2012.
Grissom commended the Hutchinson Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Lanny Welch for their work on the case.Man Previously Convicted of Transporting Minors to Work as Prostitutes Faces New Charges of Sex Trafficking WomenRead the Press Release
SANTA ANA, California – A Seattle man with a long history of forcing women into the sex trade was arraigned this morning on new charges that accuse him of sex trafficking and could send him to prison for at least another 15 years.
William Earl Flavors, who is sometimes known as “Andre,” 40, pleaded not guilty this morning after a federal grand jury indicted him on one count of sex trafficking by force, fraud or coercion, and two counts of transportation into prostitution. Flavors allegedly brought two victims from Long Beach to Las Vegas where they were forced or coerced to work as prostitutes.
The sex trafficking count carries a mandatory minimum of 15 years in federal prison.
Flavors was previously prosecuted by the United States Attorney’s Office in a case that brought him a 14-year prison sentence in May 2000. In that case, Flavors admitted transporting two teen-age girls from Washington and forcing them to work as prostitutes in Orange County.
Flavors completed his sentence in late 2011 and was on supervised release until October 2012, when he was arrested by Long Beach police after a woman reported being attacked by Flavors. Authorities believe that Flavors began pimping women soon after being released from prison. Flavors pleaded guilty in state court last year to pimping and was sentenced to four years in prison.
In a document filed for the hearing to revoke Flavors’ supervised release, prosecutors wrote: “Placing women into prostitution, in addition to physically assaulting and threatening the women, to ensure that the women stayed with defendant and worked for defendant, cannot be described as anything other than deplorable. The fact that defendant committed these acts while under this court’s supervision for previously beating and forcing minors into prostitution makes the nature and circumstances of defendant’s acts even more appalling.”
United States District Judge Cormac J. Carney earlier this year found Flavors to be in violation of his supervised release, based on his state court pimping conviction. Judge Carney revoked his supervised release and sentenced him to a four-year prison term.
Judge Carney said the “violation offends a woman’s right to liberty, dignity and self-determination. Women have a fundamental right to be free from bodily exploitation and not have their bodies exploited by Mr. Flavors and others as a source of profit.”
At his arraignment, a trial was scheduled for November 5 before United States District Judge Josephine S. Tucker.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The sex trafficking charge carries a potential life sentence and a mandatory minimum sentence of 15 years in federal prison. The two counts of transportation into prostitution each carry a statutory maximum penalty of 10 years in prison.
The new case against Flavors was investigated by the Federal Bureau of Investigation and the Long Beach Police Department.
Release No. 13-113
MS-13 Gang Member Convicted of Murdering Mother and Two Year-Old ChildRead the Press Release
Today, following three weeks of trial, a federal jury in Central Islip, New York returned a verdict convicting MS-13 street gang member Adalberto Ariel Guzman, also known as “Gringo,” on federal criminal charges, including murder, conspiracy to commit murder, and firearms offenses, in connection with the execution-style murders of a mother and her two year-old son. The defendant is facing a sentence of life in prison as a result of his conviction. Sentencing is scheduled for January 9, 2014, before United States District Judge Joseph F. Bianco.
The conviction was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Thomas V. Dale, Commissioner of the Nassau County Police Department.
At trial, the government proved that the defendant Adalberto Ariel Guzman carried out the execution-style murders of Vanessa Argueta, a 19 year-old woman, and Diego Torres, her two year-old son, in Central Islip, New York, on February 5, 2010. The bodies of Argueta and Torres were found in a secluded wooded area in Central Islip. Argueta had been shot in the head and chest, and Torres had been shot twice in the head. The evidence introduced at trial established that Guzman fired the fatal shot to Torres’s head, and after committing the murders, he and two of his co-conspirators fled to El Salvador. Guzman was arrested on May 17, 2010 in Miami, Florida, when he attempted to return to the United States.
Today’s conviction is the third that the government has obtained in connection with the Argueta and Torres murders. Heriberto Martinez, also known as “Boxer,” was convicted in March 2013, following a six-week trial, and Rene Mendez Mejia, also known as “Zorro,” pled guilty to the murders in June 2011.
Guzman’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international street gang comprised primarily of immigrants from El Salvador, Honduras and Guatemala. With numerous branches, or “cliques,” the MS-13 is the largest street gang on Long Island. Since 2002, more than 200 MS-13 members, including more than two dozen clique leaders, have been convicted on federal felony charges in the Eastern District of New York. More than 100 of those MS-13 members have been convicted on federal racketeering charges. Since 2010 alone, this Office has convicted more than 30 members of the MS-13 on charges relating to their participation in one or more murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department, Rockville Centre Police Department, and Suffolk County Police Department.
“Guzman and his co-conspirators shot a young mother and her toddler in cold blood. Her crime in their eyes -- showing “disrespect” to their vicious gang. Her child’s -- simply being with her when the defendant and his cronies decided that she could no longer live. Few other acts illustrate so clearly the heartless nature of this criminal enterprise known as MS-13. Guzman will now be held to account for his allegiance to this band of killers,” stated United States Attorney Lynch. Ms. Lynch extended her grateful appreciation to each of the law enforcement agencies for their assistance in this case.
The government’s case is being prosecuted by Assistant United States Attorneys John J. Durham and Raymond A. Tierney.
The Defendant:
ADALBERTO ARIEL GUZMAN, also known as “Gringo”
Central Islip, New York
Age: 21Local Mortgage Broker and Other Investors Sentenced to Prison for Large Mortgage Fraud SchemeRead the Press Release
PORTLAND, Ore. – David Ovist, 45, of Lake Oswego, Oregon, was sentenced today for his role in a $2.5 million mortgage fraud scheme that involved four other investors who were also sentenced recently. U.S. District Court Judge Anna J. Brown sentenced David Ovist to 57 months in prison and three years of supervised release.
Ovist was a licensed mortgage loan broker and the owner of Oregon Mortgage Services, Inc., located in Beaverton, Oregon. He was also a real estate investor. On February 8, 2013, Ovist was convicted of bank fraud and wire fraud following a ten-day jury trial for preparing residential loan applications for 12 different properties that falsified the borrower’s financial qualifications. The applications were then submitted by Ovist to seven different banks and mortgage lenders. Ovist and the other investors manipulated the underwriting process in order to qualify borrowers for home loans they would not otherwise be qualified for so the investors could buy houses as an investment.
To convince lenders to approve the loans, Ovist or the other investors falsified information about borrowers who had been recruited to obtain loans in their names because they had good credit, even though they could not otherwise qualify for the loans. They falsely inflated the monthly income stated on the home loan applications, omitted liabilities including other mortgages, falsely claimed that the borrower intended to live in the property as a primary residence rather than purchase it as an investment property, used straw buyers to obtain loans for some of the properties, forged rental agreements to make it appear as if a borrower received rental income when she did not, and falsified employment verifications about the existence, nature and length of a borrower’s employment.
“Mortgage fraud undermines our financial institutions and continues to be a burden on the economy,” said U.S. Attorney Amanda Marshall. “Brokers who abuse their authority and lie in order to help greedy investors cheat our financial institutions will go to prison.”
Judge Brown recently sentenced four other investors for their roles in the scheme. Don Kazlauskas, 46, of Portland, Oregon, was sentenced to six months in prison, followed by six months of home detention and three years of supervised release. Jacob Shoop, 30, of Portland, Oregon, was sentenced to six months of home detention, and three years of supervised release. Shoop’s father, Ricki Shoop, 58, of Portland, Oregon, was sentenced to two months of home detention, and three years of supervised release, and his mother, Sherrie Inouye, 58, of Portland, Oregon, was sentenced to three years of supervised release. The Court scheduled a restitution hearing for October 10, 2013 to determine how much restitution each of the defendants owes to the victims.
At the sentencing of Ovist, Judge Brown stated, “The criminal conduct here is so repetitious and so serious that it requires a prison sentence.” The Court rejected the notion that a white-collar defendant with no criminal record should be sentenced to probation saying, “Somehow the notion is that prison isn’t going to happen. But it does.”
“We will relentlessly pursue those who engage in mortgage fraud and others who seek to undermine the integrity of our economy,” said Greg Fowler, Special Agent in Charge of the FBI in Oregon.
The case was investigated by the Portland office of the Federal Bureau of Investigation, and was prosecuted by Assistant U.S. Attorneys Scott Erik Asphaug and Hannah Horsley.
Leader of International Drug Trafficking Conspiracy Sentenced to 15 Years ImprisonmentRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Ronaldo Edmund, age 38, of Wilmington, Delaware, was sentenced on September 9, 2013, to a term of imprisonment of fifteen (15) years for his role as a leader of an international drug trafficking conspiracy.
According to facts introduced in prior hearings, Edmund was the leader of an organization which recruited multiple drug couriers to travel to Panama in order to smuggle cocaine and heroin into the United States. Edmund, a Panamanian national, facilitated and coordinated the travel of the couriers to Panama, and he maintained and managed contact with the Panamanian sources of supply. Agents identified a total of at least nineteen (19) couriers who took smuggling trips to Panama on behalf of the organization, and who smuggled, or attempted to smuggle, more than thirteen (13) kilograms of cocaine and five kilograms of heroin from Panama to Wilmington.
The investigation also uncovered a separate source of supply, Saleem A. Sharif, a former West Point graduate and Captain in the United States Army, who shipped multiple kilograms of heroin from Kabul, Afghanistan, to the United States. Sharif and three other individuals – Charles Richardson, Darrold Thomas, and Sayeed A. Behrooz – have pleaded, or are scheduled to plead guilty, to offenses relating to the shipment of heroin from Afghanistan.
To date, the government has charged twenty-three individuals in the United States with drug trafficking offenses as a result of the investigation. All but four of those defendants – each of whom remain abroad in Panama – have pleaded guilty, or have agreed to plead guilty, to drug-related offenses. A listing of the charged defendants and their current status is set forth in Attachment A.
United States Attorney Charles M. Oberly, III, stated, “I commend the hard work and relentless dedication of our law enforcement partners over the past four years in dismantling two major drug trafficking organizations that imported cocaine and heroin from Panama and Afghanistan into the United States. The fact that these drugs made it onto the streets of Wilmington and our surrounding communities demonstrates the reach of international drug trafficking organizations – and the importance of utilizing all necessary resources to stop them. The sentence imposed on Mr. Edmund is significant, reflects his leadership role in the offense, and should serve as a serious deterrent for others in the community who would consider getting involved in international drug smuggling.”
The investigation was led by the Drug Enforcement Administration, the Department of Homeland Security – Homeland Security Investigations, the Internal Revenue Service – Criminal Investigation Division, and the Wilmington Police Department.
Investigators also received invaluable assistance from the Panamanian National Police; the United States Attorney’s Office for the Southern District of Texas; the United States Marshals Service for the District of Delaware; the Newark (Delaware) Police Department; the Delaware State Police; the New Castle County Police Department; the Delaware Department of Corrections, Probation and Parole; the Cecil County (Maryland) Drug Task Force; the Pennsylvania State Police; the Maryland State Police; and the Elkton (Maryland) Police Department.
This case is being prosecuted by Assistant United States Attorney Robert F. Kravetz. For further information, contact Press Information Officer Kimberlynn Reeves at (302) 573-6277, ext. 16287.
ATTACHMENT A
Defendant District Case No. Status
Status of Defendants Charged in Panama/Afghanistan Drug InvestigationTissany Buckham
Delaware
11-63-RGA
Sentenced on April 10, 2013, to 22 months imprisonment
Kimberly Fowler
Delaware
11-63-RGA
Completed pretrial diversion on November 6, 2012
Kelvin Cook
Delaware
11-63-RGA
Sentenced on June 20, 2013, to 180 months imprisonment
Julio Archer
Delaware
11-63-RGA
Sentenced on June 11, 2013, to 60 months imprisonment
Roumik Banerjee
Delaware
11-63-RGA
Sentenced on April 3, 2013, to 57 months imprisonment
Mia Poteat
Delaware
11-63-RGA
Sentenced on April 3, 2013, to 37 months imprisonment
Tina Simmons
Delaware
11-63-RGA
Sentenced on May 7, 2013, to three years’ probation and six months home detention
Tessa Snyder
Delaware
11-63-RGA
Pleaded guilty on May 18, 2012; pending sentencing
Dynisha Revel
Delaware
11-63-RGA
Charged defendant, currently incarcerated in Panama
Raabia Munir
Delaware
11-63-RGA
Charged defendant; a plea hearing is scheduled for October 16, 2013
Sharon Butera
Delaware
11-63-RGA
Charged defendant, currently incarcerated in Panama
Efrain Dixon
Delaware
11-63-RGA
Charged defendant, Panamanian national
Benjamin Carpenter
Delaware
11-63-RGA
Charged defendant, Panamanian national
Tara Resto
Delaware
09-102-GMS
Pleaded guilty on April 13, 2010; sentencing hearing scheduled for September 26, 2013
Kevin Morris
Delaware
12-41-RGA
Pleaded guilty on July 25, 2012; sentencing hearing scheduled for October 22, 2013
Saleem A. Sharif
Delaware
12-53-RGA
Sentenced on September 4, 2013, to 120 months imprisonment
Charles Richardson
Delaware
12-44-RGA
Sentenced on January 29, 2013, to 60 months imprisonment
Darrold Thomas
Delaware
12-65-RGA
Sentenced on August 27, 2013, to 54 months imprisonment
Sayeed A. Behrooz
Delaware
13-93-RGA
Charged defendant; plea hearing scheduled for October 15, 2013
Neisha Miller
Southern Dist. of TX
5: 11-43-01
Sentenced on September 20, 2011 to 36 months imprisonment
Gloria Miller
Southern Dist. of TX
5: 11-43-02
Sentenced on September 20, 2011 to 36 months imprisonment
Christine A. Blevins
Southern Dist. of TX
5: 09-388-01
Sentenced on March 4, 2010, to 60 months imprisonment
Bridgette Davidson
Southern Dist. of TX
5: 09-388-02
Sentenced on March 12, 2010, to 60 months imprisonment
Lafayette Man Pleads Guilty to Selling Fake Apple MerchandiseRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that Brennan LeBlanc, 37, of Lafayette, pleaded guilty Friday before U.S. District Judge Richard T. Haik to trafficking in counterfeit Apple Inc. products.According to evidence presented at the guilty plea, in May of 2012 Apple Inc. investigators informed U.S. Homeland Security investigators that Iphonelafayette.com, which LeBlanc owns andlocated on Kaliste Saloom Road in Lafayette, was selling counterfeit iPhone merchandise. Apple investigators told authorities that the Lafayette company’s website had several pictures containing counterfeit items.
On May 9, 2012, HSI agents along with a private investigator working for Apple entered the Kaliste Saloom store. The private investigator was an industry representative who specialized in trademark and copyright infringement investigations. The investigator purchased several covers displaying the brand insignia for Louis Vuitton, Coach, Otter Box and Apple for $100; the cases purchased were counterfeit. Additionally, on January 15, 2013, an undercover Louisiana State Police trooper purchased an Apple iPhone sleeve and Luis Vuitton case from the store, which were also determined to be counterfeit. The undercover trooper spoke with Leblanc who advised that additional similar counterfeit cases would be delivered the next week.
On January 25, 2013, HSI searched the business and discovered numerous counterfeit items, including 31 Louis Vuitton iPhone cases, 8 Coach iPhone cases, 241 Otter Box iPhone cases and 427 Apple iPhone cases. LeBlanc admitted that all of the cases were counterfeit.
LeBlanc faces up to 10 years in prison, a $2 million fine and three years of supervised release for trafficking in counterfeit goods or services. A sentencing date was not set.
Homeland Security Investigations, Louisiana State Police and Apple Inc. conducted the investigation. Assistant U.S. Attorney Myers P. Namie is prosecuting the case.
Kankakee Businessman Enters Guilty Pleas to Filing False Tax Returns and StructuringRead the Press Release
Urbana, Ill. – The owner of ABC Disposal Inc., a Kankakee waste management company, has entered pleas of guilty to six counts of filing false income tax returns and one count of structuring cash withdrawals to avoid detection by the Internal Revenue Service. Joseph S. Deno appeared in federal court in Urbana on Friday, Sept. 6, 2013, and pled guilty before U.S. Magistrate Judge David G. Bernthal. Sentencing has been scheduled for Jan. 9, 2014.
During court proceedings and in documents filed with the court, Deno, the sole shareholder, owner and operator of ABC Disposal, Inc., admitted that from 2005 through 2010, in order to lower his individual gross income, he withheld financial records from his tax preparer. This resulted in under-reporting his company’s gross receipts by approximately $1.7 million for the tax years from 2005 through 2010, and underpayment of his federal income taxes.
Deno also pled guilty to one count of structuring cash withdrawals from three bank accounts on 22 occasions over a one-year period, from March 2010 to March 2011. In 2010, Deno decided to retire and wanted to access the funds he had hidden from his accountant and the IRS. To avoid a Currency Transaction Report from being prepared by his bank and sent to federal authorities, he withdrew cash from his accounts in amounts just under the $10,000 threshold, for a total of $190,700. Financial institutions are required to complete and file CTRs with the IRS for any currency transactions in excess of $10,000.
According to court documents, Deno has already paid full restitution to the IRS in the amount of $905,261, for unpaid income taxes, plus interest and penalties.
Each count of filing a false income tax return carries a penalty of up to three years in prison and fines of up to $100,000. For unlawful money structuring, the penalty is up to 10 years in prison. The government is also seeking a money judgment against Deno in the amount of $190,700.
The Internal Revenue Service, Criminal Investigation Division conducted the case investigation. Assistant U.S. Attorney Eugene L. Miller is representing the government in the prosecution of the case.Justice Department to Monitor Elections in Ohio and New YorkRead the Press Release
The Justice Department announced today that it will monitor elections on Sept. 10, 2013, in Cuyahoga County, Ohio, and in Queens County, N.Y. The monitoring will ensure compliance with the Voting Rights Act, which prohibits discrimination in the election process on the basis of race, color or membership in a minority language group.
In Cuyahoga County, the Department will assign federal observers from the U.S. Office of Personnel Management (OPM) to monitor polling place activities based on a court order. The observers will watch and record activities during voting hours at polling locations in this jurisdiction, and Civil Rights Division attorneys will coordinate the federal activities and maintain contact with local election officials.
In addition, Justice Department personnel will monitor polling place activities in Queens County. A Civil Rights Division attorney will coordinate federal activities and maintain contact with local election officials.
Each year, the Justice Department deploys federal observers from OPM, as well as departmental staff, to monitor elections across the country. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Visit www.justice.gov/crt/about/vot/ for more information about the Voting Rights Act and other federal voting rights laws.
Justice Department Reaches Settlement with Staffing Company to Resolve Immigration-related Unfair Employment PracticesRead the Press Release
The Justice Department announced today that it reached an agreement with Kelly Services Inc., a staffing company based in Troy, Mich., resolving an allegation of discrimination based on citizenship status during the employment eligibility re-verification process at one of its branch locations in Schaumburg, Ill. The investigation was initiated by the department’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) based on information obtained from a former employee of the company who had contacted that office.
The department’s investigation concluded that Kelly Services terminated the individual’s employment during the employment eligibility re-verification process when he did not produce a new U.S. Citizenship and Immigration Services (USCIS)-issued document, even though he had a valid unrestricted Social Security card at the time that was also acceptable to show continued employment eligibility. To resolve the matter, Kelly Services has agreed to compensate the former employee for lost wages in the amount of $1,888.60 and pay a $1,100 civil penalty to the United States. Designated Kelly Services staff will also participate in Justice Department training on employers’ responsibilities under the anti-discrimination provision of the Immigration and Nationality Act (INA).
OSC is responsible for enforcing the anti-discrimination provision of the INA. For more information about protections against employment discrimination under the immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired), sign up for a free webinar at www.justice.gov/about/osc/webinars.php , email [email protected] or visit the website at www.justice.gov/crt/about/osc
Informational: Federal Court Initial AppearanceRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on September 9, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, the following individual appeared:
JORDAN LINN GRAHAM, a 22-year-old resident of Kalispell, made an initial appearance on a complaint alleging murder in the second degree of Cody Lee Johnson. She is currently detained.
If charged with murder in the second degree, GRAHAM faces possible penalties of life in prison.
Assistant U.S. Attorney Zeno B. Baucus is the prosecutor for the United States.
The investigation was a cooperative effort between the Kalispell City Police Department, the Flathead County Coroner, the Federal Bureau of Investigation, and the National Park Service.
A complaint is merely a written statement of the essential facts constituting the offenses charged.
Idaho Falls Man Sentenced for Meth TraffickingRead the Press Release
POCATELLO – John Robert Anderson, 34, of Idaho Falls, Idaho, was sentenced today to 24 months in prison followed by four years of supervised release for possession with intent to distribute in excess of five grams of actual methamphetamine, U.S. Attorney Wendy J. Olson announced. Anderson was sentenced by Senior U.S. District Judge Terry J. Hatter, Jr., at the federal courthouse in Pocatello. He pleaded guilty to the charge on February 7, 2013.
According to the plea agreement, on August 29, 2012, law enforcement officers arrested Anderson in Idaho Falls for outstanding warrants. A subsequent search revealed Anderson was in possession of 19 grams of a substance containing 17.36 grams of methamphetamine, a digital scale disguised as a cell phone, and baggies. Anderson admitted he possessed the methamphetamine with the intention of distributing it to another person.
The indictment was a result of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), including the Idaho State Police, Bonneville County Sheriff's Office, Idaho Falls Police Department, Madison County Sheriff's Office, Rexburg Police Department, Bingham County Sheriff’s Office, Fremont County Sheriff’s Office, Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Other federal agencies participating in the OCDETF program include the Drug Enforcement Administration and the U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Houston Woman Gets Federal Prison for Embezzling from BankRead the Press Release
HOUSTON – Hannah Gonzales, 24, of Houston, has been ordered to prison for two years and ordered to pay $55,000 in restitution for embezzling customer funds from the International Bank of Commerce (IBC), announced United States Attorney Kenneth Magidson. She pleaded guilty to the charges June 6, 2013.
Gonzales, an assistant branch manager at IBC, began withdrawing money from customers' CD accounts without their authorization beginning in 2010. By the time she was fired in July 2011, she had withdrawn almost $100,000.
According to records, Gonzales chose customers who were either elderly or out of the country in order to reduce the chance that she would get caught.
Gonzales also took money from her teller boxes without authorization. IBC records demonstrated that she was able to do this by conducting transactions in which there was no customer and by simply taking customer's cash deposits and not placing the cash into her teller box. On the day she was fired, IBC's audits revealed she was short approximately an additional $24,000.
U.S. District Court Judge Vanessa D. Gilmore, who presided over the case, has permitted her to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the U.S. Secret Service. Assistant United States Attorney Sharad S. Khandelwal prosecuted the case.
Houston Man Sent to Prison for Distributing and Possessing Child PornographyRead the Press Release
HOUSTON - Charles Wright, 59, of Houston, was ordered to serve 20 years in federal prison following his convictions of distribution and possession of child pornography, announced United States Attorney Kenneth Magidson. Wright was convicted Feb. 6, 2013, by a federal jury on both counts as charged.
Today, U.S. District Judge Kenneth Hoyt, who presided over the trial, ordered Wright into custody for 210 and 30 months, respectively, for the distribution and possession charges. The sentences are to be served consecutively for a total of 240 months in federal prison. The issue of restitution for known victims will be decided at a separate hearing on or before Nov. 18, 2013. He was further ordered to serve the rest of his life on supervised release following completion of the prison term and will have to register as a sex offender.
These charges were the result of an investigation conducted by the FBI Innocent Images Task Force which revealed Wright was making child pornography available to others through the use of Peer to Peer software over the Internet. A task force officer from the Houston Police Department downloaded images of child pornography from the files Wright was making available online. These images included children under 12 being sexually violated by adults and in positions which caused their genitalia to be displayed in a lewd/lascivious manner.
A search warrant was executed on Sept. 14, 2011, at which time computer media including external hard drives were seized. The examination of the computer revealed more than 250 digital images and approximately 53 videos which contained child pornography.
Wright has been in state custody since his arrest on similar state charges on Sept. 14, 2011, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."This case is being prosecuted by Assistant United States Attorney Sherri L. Zack who was assisted at trial by Assistant United States Attorney Robert Stabe.
Hereford House Owner, Two Others Sentenced for Fire that Destroyed Landmark RestaurantRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an owner of the Hereford House restaurant and two men he hired were sentenced in federal court today for their roles in an arson conspiracy that destroyed the landmark downtown Kansas City restaurant on Oct. 20, 2008.
“These defendants torched a landmark restaurant in order to cheat the insurance company out of millions of dollars,” Dickinson said. “They deliberately created a violent explosion and an inferno that endangered the lives of many others. Their greed and deceit easily could have been lethal, not only for innocent neighbors and passersby, but for firefighters and other first responders. I’m satisfied that today’s sentences reflect the significance of their crimes and justly hold them accountable for their actions.”
Rodney J. Anderson, 60, Vincent Pisciotta, 59, and Mark A. Sorrentino, 47, all of Kansas City, were sentenced in separate hearings before U.S. District Judge Greg Kays. Anderson was sentenced to 15 years in federal prison without parole. Pisciotta was sentenced to 20 years in federal prison without parole. Sorrentino was sentenced to 15 years in federal prison without parole. The court is taking under advisement the recommendation for the defendants to pay $1,440,219 in restitution, for which they would be jointly and severally liable.
“After four years of tireless work by ATF and our partners, we are proud that these three men have been brought to justice,” said ATF Special Agent in Charge Marino F. Vidoli. “An iconic Kansas City landmark was destroyed as a result of greed; thankfully no one was injured or killed as a result of this violent crime.”
Anderson, Pisciotta and Sorrentino were each convicted at trial of one count of conspiracy, one count of arson and one count of using fire to commit a federal felony. Anderson was also found guilty of one count of mail fraud. They have been in federal custody since the conclusion of the trial on Oct. 31, 2012.
Anderson is a co-owner of B & C Restaurant Corporation, a holding company that owned the Hereford House restaurant business. Anderson is also a co-owner of Hereford K.C. Realty, LLC, which owned the building at 2 E. 20th Street, Kansas City, Mo., in which the Hereford House was located, and a co-owner of Skivers Corporation, a restaurant management company that managed the Hereford House and other area restaurants.
Evidence introduced during the trial indicated that in 2007 and 2008, the Hereford House restaurant at the downtown location was struggling financially. The struggles stemmed from the need to upgrade or remodel the aging restaurant and from the increased competition from new restaurants at the Power and Light District. Anderson sought offers to buy the property, remodel the property and lease the property back to his restaurant operating group. In August 2008, the last offer Anderson received was too costly to make the transaction profitable. In 2008, Anderson personally infused hundreds of thousands of dollars into the restaurant and was on the verge of personal bankruptcy. The sources of Anderson’s cash infusion included high-rate business “payday” loans, and money from his 401(k), his mother’s IRA and from his children’s trust accounts.
Anderson hired Pisciotta to set fire to the restaurant in order to collect the insurance proceeds that would pay for the remodeling that was needed for the restaurant to regain its prominence. Anderson met with Pisciotta at the Hereford House on Sept. 27, 2008. Anderson showed him around for about 50 minutes and gave him a key and a security alarm code so that Pisciotta and Sorrentino could gain entry into the Hereford House and deactivate the security alarm system.
On Oct. 12, 2008, Pisciotta and Sorrentino (accompanied by an unidentified co-conspirator) used the key and alarm code Anderson had provided to enter the Hereford House and conduct a walk-through in preparation for setting fire to the building.
On Oct. 19, 2008, Pisciotta used the key and security code to enter the Hereford House shortly before midnight. A short time later, Sorrentino arrived with the unidentified co-conspirator in a white van and the three men unloaded 14 plastic containers. Those five-gallon containers were filled with gasoline and were placed throughout the bar area of the restaurant. They were punctured in a manner to allow the gasoline to leak out in the area along with a large volume of gasoline fumes. They used a delayed ignition device that allowed the gasoline fumes to ignite in a manner that created an explosion. They also shut off the water supply to the fire suppression system and deactivated any alarm or warning mechanism for firefighters and other authorities.
At approximately 12:44 a.m. on Oct. 20, 2008, a 911 call dispatched the Kansas City Fire Department to the restaurant after an explosion at the location. The fire department arrived quickly and was able to extinguish the fire, although the restaurant was destroyed.
Anderson was out of town at the time of the arson and the company’s CFO provided the ATF with the digital video surveillance from the restaurant’s surveillance cameras. Anderson’s meeting with Pisciotta on Sept. 27, 2008 was captured on the video surveillance, along with the Oct. 12, 2008 walk-through by Pisciotta and Sorrentino. Additionally, on Oct. 19-20, 2008 Pisciotta and Sorrentino can be seen on the video surveillance unloading the plastic containers of gasoline and placing them in the bar area of the restaurant before setting an ignition device.
About a month after the fire, Anderson requested an advance payment of $300,000 from Travelers Property Casualty Company of America, which provided insurance coverage for the building and contents of the Hereford House. The check, which was sent by Travelers via overnight delivery, provides the basis for the mail fraud charge in Count Three of the indictment. Anderson also claimed a loss of $962,593 on the Hereford House building and a loss of $1,459,505 on behalf of B & C Restaurant Corporation, for a total claimed loss of $2,422,098.
This case was prosecuted by Assistant U.S. Attorneys Jess E. Michaelsen and Paul S. Becker. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas City, Mo., Police Department, the Kansas City, Mo., Fire Department and the FBI.Franklin County Man Pleads Guilty to Drug ChargeRead the Press Release
JOHNSTOWN, Pa. - A resident of Waynesboro, Pa., pleaded guilty in federal court to a charge of conspiracy to distribute cocaine, United States Attorney David J. Hickton announced today.
Kenneth Biser, 59, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that Biser conspired to possess and distribute 500 grams or more of cocaine from Nov. 2011 to July 18, 2012.
Judge Gibson scheduled sentencing for February 6, 2014, at 10 a.m. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Pending sentencing, the court continued Biser on bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Safe Streets Task Force initiative comprised of the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pa. Attorney General's Office, the Blair County Drug Task Force, the Cambria County Drug Task Force, the Somerset County Drug Task Force, the Roaring Spring Borough Police Dept. and the Paint Township Police Dept. conducted the investigation that led to the prosecution of Biser.
Former Toledo Teacher Sentenced to Six Year in Prison for Child Pornography CrimeRead the Press Release
A Toledo man was sentenced today to more than six years in prison for receipt of child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Bruce Omlor, age 50, was sentenced to 75 months in prison after pleading guilty earlier this year to one count each of receipt of child pornography. The conduct occurred between June 2009 and April 2012, according to court documents.
“This sentence should send a warning to those that would become involved with child pornography,” Dettelbach said.
“Today’s sentencing emphasizes the serious consequences that await those who are engaged in any way with child pornography,” said William Hayes, acting special agent in charge of HSI Detroit, which covers Michigan and Ohio. “This case was particularly troubling because of Mr. Omlor’s position of public trust as an educator. HSI will continue to work closely with its law enforcement partners to protect our children and ensure that online predators feel the full weight of the law.”
The investigating agency in this case is the United States Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Cleveland. The case is being prosecuted by Assistant United States Attorney Gene Crawford.
Former Student Sentenced for Making False 911 Call Concerning Alleged Gunman at UVa-WiseRead the Press Release
ABINGDON, VIRGINIA – Bryant Alexander Hairston, 20, of Martinsville, Virginia, was sentenced today, in the United States District Court for the Western District of Virginia, in Abingdon, to the five days of jail time already served and supervised release for a term of two years for his conviction of one count of making false statements in a matter within the jurisdiction of the Executive Branch of the United States and one count of making false statements under oath. United States District Judge James P. Jones also ordered that Hairston make restitution in the amount of $4,010.00 to reimburse the various law enforcement and counseling agencies for their costs in responding to the 911 call and dealing with traumatized students.
On January 23, 2013, Hairston told a 911 dispatcher there was a gunman on the campus of the University of Virginia’s College at Wise (“UVa-Wise”) who was trying to get into one of the residence halls. Hairston told the dispatcher that the man had a pistol. The campus was placed on lock down and law enforcement officers from various agencies responded to the scene. Armed officers went door to door through the residence hall searching for the alleged gunman. While the search was ongoing, Hairston made statements indicating he was happy that he had saved the lives of his fellow students. Officers became suspicious of Hairston and questioned him. After some time, Hairston admitted he had made up the story about a man having a gun because he wanted to look like a hero.
“When Mr. Hairston falsely claimed to have seen a gunman on the campus of UVa-Wise, he instigated an immediate emergency response and caused significant stress among his fellow students and their families,” United States Attorney Timothy J. Heaphy said today. “Upon hearing of his despicable lie, students barricaded themselves in rooms and parents worried their children would become victims of another mass shooting. Hairston created a highly charged and dangerous situation for law enforcement and others. His false report reignited the fear that lingers in our district, which has experienced the awful reality of campus violence in our recent past. Our aggressive pursuit of this case demonstrates our desire to hold accountable those who make false reports to law enforcement. An act like this, which in years past may have been viewed as a harmless hoax, is now extremely serious and warrants a felony conviction.”
The government’s investigation uncovered evidence that another resident of Hairston’s residence hall was at the door on the evening of January 23, wearing a ski mask because of the cold weather, and had asked Hairston to let him in. Hairston did not open the door and raced upstairs. At today’s sentencing hearing, Hairston testified that after running upstairs he falsely told a fellow student that a man with a gun was trying to get into the building and then repeated the lie to the 911 operator and various responding law enforcement officers. Hairston admitted he never saw a gun. At today’s hearing, Hairston expressed remorse for his conduct, stating “I know it was wrong to say that there was a gun when there was not and I am very sorry I scared so many people at my college and caused so much trouble for the police.”
Hairston previously pled guilty to these charges on May 31, 2013, pursuant to a plea agreement. Pursuant to the plea agreement, the government agreed to recommend the sentence that the Court imposed today.
The investigation of the case was conducted by the police departments of UVa-Wise, Pound, and Wise; the Wise County Sheriff’s Office; the Virginia State Police; and the Bristol Office of the Federal Bureau of Investigation. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Former St. Louis Parks Division Deputy Commissioner and Chief of Park Rangers Plead Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – JOSEPH VACCA, Former Deputy Commissioner of the St. Louis Parks Division, and THOMAS STRITZEL, Former Chief of the St. Louis Park Rangers, pled guilty to charges that they defrauded the City of St. Louis of approximately one-half million dollars by submitting false invoices for materials and services supplied to the Parks Division. Both defendants appeared before United States District Judge Jackson in St. Louis.
According to court documents, from January 1, 2005, to December 31, 2012, Vacca and Stritzel embezzled funds of the City of St. Louis based upon the submission of sham and false invoices which included false charges of approximately $464,722. They used the funds for their own personal use, including lease payments on personal vehicles, fuel costs, the payment of personal credit card charges and other personal living expenses unrelated to the legitimate operations of the St. Louis Parks Division.
Vacca and Stritzel set up a sham company called Dynamic Management and then funneled city funds received through the submission of false and sham invoices to Dynamic Management’s bank account. Vacca and Stritzel then used those fraudulently obtained funds for their own personal use, including leasing personal vehicles, payment of fuel costs and the payment of personal credit card charges.
These charges carry a penalty range of twenty (20) years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Sentencings have been set for December 12, 2013.
This case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney's Office.Former Pacific Palisades Man Sentenced to Four Years in Prison for Investment and Mortgage Fraud SchemeRead the Press Release
SAN FRANCISCO – Robert Hans Schenk was sentenced on September 6, 2013, to four years in prison for wire fraud, United States Attorney Melinda Haag announced.
Schenk pleaded guilty on September 2, 2011, to one count of conspiracy to commit wire fraud and eight counts of wire fraud. In his plea agreement, Schenk admitted that he fraudulently induced numerous individuals to invest millions of dollars in his businesses, Griffin Digital Services and Smartworld Solutions. Schenk admitted to using much of those funds to pay his family’s personal expenses. In addition to this investment fraud scheme, Schenk also admitted to using the identity of one of the investors without his knowledge and fraudulently obtained a $1.7 million mortgage refinancing loan in that investor’s name. The mortgage refinancing loan was used for the home in which Schenk and his family lived in Pacific Palisades, California.
Schenk, 52, was arrested on January 4, 2011, and has been in federal custody since that date. He was indicted by a federal grand jury on January 11, 2011. He was charged in an Indictment with one count of conspiracy to commit wire fraud, eight counts of wire fraud, and two counts of aggravated identity theft.
The sentence was handed down by The Honorable Susan Illston, U.S. District Judge, following a guilty plea to one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and eight counts of wire fraud, in violation of Title 18, United States Code, Section 1343. Judge Illston also sentenced the defendant to a three-year period of supervised release and ordered him to pay a total of approximately $4.5 million in restitution to various individual victims and to the mortgage lender that suffered a loss with respect to the $1.7 million mortgage refinancing loan.
Kyle F. Waldinger is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rayneisha Booth. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Former Orleans Parish Bail Bondswoman, Tynekia Buckley, Charged with ConspiracyRead the Press Release
TYNEKIA BUCKLEY, age 41, a resident of New Orleans, was charged with Conspiracy to Commit Honest Services Mail Fraud, Wire Fraud, and Unauthorized Access to a Protected Computer today in a one-count Bill of Information, announced U. S. Attorney Dana Boente.
According to court documents, BUCKLEY, who worked as a licensed bail bondswoman in New Orleans from 2004 through 2012, conspired with an un-licensed bail bondsman to give cash and things of value to Lear Enclarde, a former assistant bond clerk in the Orleans Parish Criminal Clerk’s Office, in exchange for Enclarde’s permitting the unlicensed bondsman to use BUCKLEY’S name and bonding license, and to forge BUCKLEY’S signature on official court documents.
According to additional court documents, BUCKLEY conspired with that same un-named and un-licensed bail bondsman to give cash and things of value to Gilishia Garrison, a former assistant bond clerk and a former part-time employee of the Orleans Parish Criminal Sheriff’s Office, in exchange for Garrison’s illegal and un-authorized release of criminal defendants from the Orleans Parish Prison.
Both Enclarde and Garrison have pleaded guilty to the conduct charged in the Bill of Information.
If convicted, BUCKLEY faces a maximum term of imprisonment of 5 years, a fine of $250,000 and 3 years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation, the New Orleans Police Department, the Orleans Parish District Attorney’s Office, and the United States Attorney’s Office.
The case is being prosecuted by Assistant U. S. Attorneys Dan Friel and Edward Rivera.
(Download Bill of Information )
Former Fort Lauderdale Securities Professional Sentenced for Obstruction of Proceedings and Providing False Testimony Before the U.S. Securities and Exchange CommissionRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Robert J. Vitale, 42, of Ft. Lauderdale-by-the-Sea, Florida, was sentenced today to 24 months imprisonment, a $50,000 fine, and three-years supervised release by U.S. District Judge Joan A. Lenard. Vitale was convicted of obstruction of proceedings and providing false testimony before the U.S. Securities and Exchange Commission (SEC).
According to court documents, in or around May 2012, the SEC was conducting an official investigation into allegations that Vitale engaged in violation of the securities laws. As part of the investigation, the SEC attempted to identify assets and bank accounts attributable to Vitale. On or about June 4, 2012, Vitale completed and provided to the SEC, a “Background Questionnaire” form purporting to list bank accounts and other assets attributable to him. Shortly before completing the questionnaire, Vitale transferred $100,000 from an account that was disclosed on the form, to a separate account that he controlled.
According to court documents, Vitale willfully failed to disclose the existence of the funds or the bank account holding the funds, to the SEC. Thereafter, on June 5, 2012, Vitale provided sworn testimony to the SEC at the SEC’s Southeast Regional Offices, in Miami, Florida. During this sworn testimony, Vitale provided false testimony about his assets and accounts, as well as the accuracy of the information provided on the form he had submitted to the SEC.
Previously, in an unrelated matter, Vitale was charged civilly with violating securities laws in 2004, and was the subject of Final Judgment in SEC v. Robert Vitale, et al., No. 04-60493 (the “2004 Case”), in which he was ordered to pay disgorgement and civil penalties for violations of the federal securities laws. According to court records, as of June 2012, when he provided false sworn testimony and engaged in conduct designed to conceal his assets, Vitale had failed to satisfy his obligations from the 2004 Case.
In addition to the sentence of 24-months imprisonment and $50,000 fine, during the defendant’s three-year supervised release term, he was ordered to have no involvement in the securities or real estate industries, and no involvement in any investment business absent court permission.
Mr. Ferrer commended the investigative efforts of the FBI and the SEC. The matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
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 Davenport Man Sentenced for Receiving Child PornographyRead the Press Release
DAVENPORT, IA - On September 6, 2013, David Adair Woolison, age 34, formerly from Davenport, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 70 months in prison, after pleading guilty to receiving child pornography, announced United States Attorney Nicholas A. Klinefeldt. Judge Rose also ordered Woolison to serve five years of supervised release following imprisonment, register as a sex offender, and pay $100 towards the Crime Victims Fund. Woolison admitted to receiving child pornography from November 2008 to April 2011.
This case was investigated by the Iowa Internet Crimes Against Children Task Force, Dewitt, Iowa, Police Department and the Davenport, Iowa, Police Department, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Former Customs and Border Protection Officer Sentenced to More Than Six Years for Receiving Bribes to Allow Aliens to Enter the U.S. IllegallyRead the Press Release
Former Customs and Border Protection Officer Hector Rodriguez was sentenced today by U.S. District Judge Roger T. Benitez to serve 78 months in federal prison followed by three years of supervised release for bribery, bringing in aliens for financial gain and conspiracy.
Rodriguez, who pleaded guilty on March 28, also forfeited a 2009 Jaguar, 12 luxury watches – including five Rolexes - jewelry, televisions, cash, and computers that were obtained as a result of his criminal activity.
Two of Hector Rodriguez’s accomplices were also sentenced today. Codefendant Gerardo Rodriguez was sentenced to 60 months in prison followed by three years of supervised release and he forfeited a 2005 Mercedes, 2006 Harley Davidson, $60,000, televisions, and computers that were obtained as a result of his criminal activity. Codefendant Maria Guerrero was sentenced to 30 months in federal prison followed by three years of supervised release and ordered to pay a $40,000 fine.
The case was investigated by the multi-agency Border Corruption Task Force.
According to court records, defendant Hector Rodriguez agreed that from around 2010 until his arrest on July 13, 2012, he received bribes from codefendants Gerardo Rodriguez and Maria Guerrero, in the form of cash money, use of luxury vehicles, and use of an apartment, in return for failing to enforce U.S. immigration laws by admitting illegal aliens into the U.S. through his inspection lane at the San Ysidro Port-of-Entry.
Defendant Hector Rodriguez provided his lane assignment information to codefendants who would then drive vehicles containing illegal aliens from Mexico to the United States through his assigned inspection lane. On their date of arrest, July 13, 2012, codefendant Gerardo Rodriguez drove a vehicle containing eight illegal aliens and codefendant Vanessa Moya drove a vehicle containing six illegal aliens through defendant Hector Rodriguez’s inspection lane. To conceal the smuggling, defendant Hector Rodriguez would enter into the government database false information about who was driving the vehicle and the number of occupants, thereby concealing the fact that the vehicles contained illegal aliens.
(Codefendant Vanessa Moya was previously sentenced on May 13, 2013 to five years of probation and ordered to pay a $2,500 fine.)
United States Attorney Laura E. Duffy stated, “The honesty and integrity of those who protect our borders are an integral part of the security equation. Corrupt officials who violate the public’s trust and jeopardize the security of our borders will not be tolerated and will be brought to justice.”
Pete Flores, director of CBP field operations for San Diego, said: “The sentencing of this former officer sends a message both to the community at large and to those in trusted positions in federal law enforcement who would contemplate participating in corrupt and unlawful behavior. We will not tolerate corruption within our workforce and we will actively ferret out and prosecute to the fullest extent of the law any employees who commit unethical or unlawful acts that violate that special trust.”
FBI Special Agent in Charge (SAC) Daphne Hearn commented, "Public corruption tears at the fabric of our communities and our national security. The FBI will continue to work with our partners in the Border Corruption Task Force (BCTF) to root out corruption along the Southwest Border and ensure those who violate the public's trust are held accountable." The public can report alleged instances of corruption to the FBI hotline at 1-800-NO BRIBE.
DEFENDANTS Case Number: 12cr2997-BEN/12cr4462-BEN Hector Rodriguez
Gerardo Rodriguez
Vanessa Moya
Maria Guerrero SUMMARY OF CHARGESTitle 8, United States Code, Section 371- Conspiracy to Bring In Aliens For Financial Gain and Bribery; Title 8, United States Code, Section 1324(a)(2)(B)(ii)- Bringing In Illegal Aliens For Financial Gain; and
INVESTIGATING AGENCIES
Title 18, United States Code, Sections 201(b)(1), 201(b)(2) – Bribery.The Border Corruption Task Force is composed of the Federal Bureau of Investigation, Customs and
Border Protection - Internal Affairs, Customs and Border Protection - Field Operations, Border Patrol, Transportation Security Administration, and Drug Enforcement Administration.Former Bryan Chiropractic Clinic Owner Convicted in $3 Million Auto Insurance Fraud ConspiracyRead the Press Release
HOUSTON – The former owner of Private Chiropractic Care in Bryan has entered a plea of guilty to engaging in a conspiracy to defraud various automobile insurance companies of more than $3 million, announced United States Attorney Kenneth Magidson.
Brittany Jessie, 24, admitted she participated in a three-year conspiracy to defraud numerous auto insurance companies by creating fraudulent chiropractic bills for chiropractic treatments which were never performed and used as support for fraudulent settlement demand letters sent to auto insurance companies.
During her plea, Jessie admitted that she, Marion Young, 52, and Chase Lindsey, 35, and others engaged in a conspiracy to defraud auto insurance companies. Jessie worked both at Sanjoh and Associates Law Firm in Bryan and as a tech at the chiropractic clinics run by Young, Lindsey and others. Lindsey is a chiropractor licensed to practice in the State of Texas.
Jessie sometimes cashed checks and took the cash to Lindsey for payment. Lindsey routinely prescribed medically unnecessary treatment which was provided, if at all, by unlicensed, untrained and unqualified individuals, including Jessie. Lindsey always prescribed the same six treatments but the patients usually received only two: ice/heat packs and electric stimulation. Lindsey prescribed the treatments be done 3-4 times per week for 5-6 weeks, but the patients usually went once a week for 3-4 weeks and many did not even go back for treatment after one or two visits.
Jessie was instructed on which treatments to mark down in order for the billing to be approved and to alternate treatments on the billing so it did not look suspicious. At one point, Jessie provided a set of treatment guidelines to an employee at Private Chiropractic Care to follow which were needed for the billing of patients. Jessie instructed that employee to mark down patient treatments, even if the treatments were not done, because it was necessary for billing. Jessie further instructed the employee to have the patients initial off next to the fraudulent treatments as if they received them.
Jessie also fraudulently marked down treatments and the patient's pain levels on treatment forms at the Sanjoh & Associates office when the patient had not received the treatment. She also prepared the false chiropractic billing statements at Sanjoh & Associates. Although most of the treatments billed were never performed, Jessie created false and fraudulent chiropractic bills under Lindsey’s name for each of the four clinics in the scheme - Texas Avenue Chiropractic Clinic, H & E Chiropractic, Private Chiropractic Care and Lindsey Chiropractic Care.
Despite changing the name and location of the chiropractic clinic four times, the fraud scheme remained the same. Jessie knew the fraudulent bills she created were used as support for settlement demand letters sent to auto insurance companies. The fraudulent demand letters caused the insurance companies to issue settlement checks and place those checks into the U.S. Mail to be delivered to Sanjoh and Associates.
Jessie acknowledged the scheme to defraud the automobile insurance companies resulted in the submission of more than $3 million in false billing claims. The insurance companies paid at least $940,000 in false claims during 2007-2009, during which time Jessie was paid at least $22,637.
U.S. District Judge Kenneth Hoyt, who accepted the guilty plea, has set sentencing for Dec. 2, 2013, at which time she faces a maximum penalty of 20 years imprisonment and a possible $250,000 fine. As part of her plea agreement, Jessie has also agreed to pay restitution of approximately $941,000 to the insurance companies victimized by the scheme. She was permitted to remain on bond pending her sentencing.
Lindsey and Young both previously pleaded guilty and are scheduled to be sentenced in early 2014. The remaining two defendants charged in the case are scheduled for trial on Sept. 24, 2013. They are presumed innocent unless and until convicted through due process of law.
The criminal charges are the result of a joint investigation by agents of the FBI and the National Insurance Crime Bureau. This case is being prosecuted by Assistant United States Attorney Al Balboni and Special Assistant United States Attorney Adrienne Frazior.
Former Bernalilo County Corrections Officer Sentenced to Prison for Obstructing JusticeRead the Press Release
The Justice Department announced today that Kevin Casaus, 24, a former corrections officer at the Bernalillo County Metropolitan Detention Center (MDC) in Albuquerque, N.M., was sentenced this morning to serve 15 months in federal prison followed by one year of supervised release for his conviction on obstruction of justice and falsification of records charges.
Casaus and fellow former MDC corrections officers, Demetrio Juan Gonzales, 41, and Matthew Pendley, 26, were indicted in June 2012, and charged with various crimes related to the Dec. 21, 2011 assault of an inmate housed at MDC, and subsequent attempts to cover up and impede the investigation of the assault.
On March 6, 2013, a federal jury convicted Casaus on obstruction of justice and falsification of records charges, and acquitted him on a related assault charge. According to the evidence at trial, during the early morning hours of Dec. 21, 2011, Gonzales was assigned to the Receiving-Discharge-Transfer (RDT) Unit at MDC where individuals are brought to be booked soon after they are arrested. His job was to photograph and fingerprint those who are brought to RDT for booking. The victim, who had been arrested for driving while intoxicated, was verbally uncooperative during the booking process, but was not a physical threat to anyone. Gonzales, who had previously pleaded guilty, testified that he became angry at the victim and walked him to the shower room where he knew there were no surveillance cameras. Several other corrections officers, including Casaus, followed Gonzales to the shower room. There, Gonzales physically assaulted the victim, striking him multiple times, and choking him. Gonzales testified that he beat the victim “in a blind rage” and then had to wash the victim’s blood off his hands. He further testified that the victim did not do anything to justify the beating.
According to the testimony, Casaus and two other corrections officers were present in the shower room during the beating. Additionally, a former inmate who was in the hallway outside the shower room at the time of the beating, overheard groans and sounds consistent with the assault coming from the shower room. The former inmate was then tasked with cleaning the blood that was on the floors and walls of the shower room. Casaus falsely stated during a recorded interview with a Bernalillo County Sheriff’s Office investigator that the victim was not assaulted in the shower room, the victim was not bleeding and that they only brought the victim to the shower room to ask him to change out of his clothes. Casaus falsified his report when he wrote that he saw blood on the victim's clothes, but did not know where the blood came from.
In October 2012, Gonzales pleaded guilty to violating the civil rights of an individual in his custody when he struck and choked the victim in the shower room/dress out area of MDC and subsequently was sentenced to 33 months in prison followed by three years of supervised release. Pendley pleaded guilty in February 2012 to obstructing justice by making false statements to law enforcement during their investigation of the assault on an inmate and was sentenced to a five year term of probation.
“Law enforcement officers who lie and obstruct justice to cover a fellow officer’s criminal acts do a disservice to the community that they swore to serve and protect,” said Acting Assistant Attorney General for Civil Rights Jocelyn Samuels. “As the prosecution of these three MDC corrections officers demonstrate, the Civil Rights Division, in conjunction with our partners at the U.S. Attorney’s Office and FBI, is committed to holding law enforcement officers accountable when they violate their sworn duty to uphold the Constitution.”
“A correction officer who actively covers up illegal violence perpetrated by another officer re-victimizes a victim, undermines the public’s confidence in the justice system and fosters a belief that correction officer violence perpetrated on inmates will be met with impunity rather than justice,” said Acting U.S. Attorney Steven C. Yarbrough of the District of New Mexico. “Such a culture cannot, and will not, be tolerated.”
“Correctional officers are given tremendous power to enforce the law. When that authority is abused, it's not just the civil rights of prison inmates that are threatened, but the public's trust in our democratic institutions as well,” said Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI. “The FBI, as the lead agency for investigating abuses of government officials, places a high priority on these cases. I would like to commend the FBI Special Agents who worked on this case, with the assistance of the U.S. Attorney's Office, the Justice Department's Civil Rights Division, the Bernalillo County Sheriff's Office and the Metropolitan Detention Center's executive management and internal affairs staff.”
This case was investigated by the Albuquerque Division of the FBI and was prosecuted by Assistant U.S. Attorney Mark T. Baker for the District of New Mexico and Trial Attorney Fara Gold of the Civil Rights Division.
Former Bernalilo County Corrections Officer Sentenced to Prison for Obstructing JusticeRead the Press Release
ALBUQUERQUE – The Justice Department announced today that Kevin Casaus, 24, a former corrections officer at the Bernalillo County Metropolitan Detention Center (MDC) in Albuquerque, N.M., was sentenced this morning to 15 months in federal prison followed by 1 year of supervised release for his conviction on obstruction of justice and falsification of records charges.
Casaus and fellow former MDC corrections officers, Demetrio Juan Gonzales, 41, and Matthew Pendley, 26, were indicted in June 2012, and charged with various crimes related to the Dec. 21, 2011 assault of an inmate housed at MDC, and subsequent attempts to cover up and impede the investigation of the assault.
On March 6, 2013, a federal jury convicted Casaus on obstruction of justice and falsification of records charges, and acquitted him on a related assault charge. According to the evidence at trial, during the early morning hours of Dec. 21, 2011, Gonzales was assigned to the Receiving-Discharge-Transfer (RDT) Unit at MDC where individuals are brought to be booked soon after they are arrested. His job was to photograph and fingerprint those who are brought to RDT for booking. The victim, who had been arrested for driving while intoxicated, was verbally uncooperative during the booking process, but was not a physical threat to anyone. Gonzales, who had previously pleaded guilty, testified that he became angry at the victim and walked him to the shower room where he knew there were no surveillance cameras. Several other corrections officers, including Casaus, followed Gonzales to the shower room. There, Gonzales physically assaulted the victim, striking him multiple times, and choking him. Gonzales testified that he beat the victim “in a blind rage” and then had to wash the victim’s blood off his hands. He further testified that the victim did not do anything to justify the beating.
According to the testimony, Casaus and two other corrections officers were present in the shower room during the beating. Additionally, a former inmate who was in the hallway outside the shower room at the time of the beating, overheard groans and sounds consistent with the assault coming from the shower room. The former inmate was then tasked with cleaning the blood that was on the floors and walls of the shower room. Casaus falsely stated during a recorded interview with a Bernalillo County Sheriff’s Office investigator that the victim was not assaulted in the shower room, the victim was not bleeding and that they only brought the victim to the shower room to ask him to change out of his clothes. Casaus falsified his report when he wrote that he saw blood on the victim's clothes, but did not know where the blood came from.
In Oct. 2012, Gonzales pleaded guilty to violating the civil rights of an individual in his custody when he struck and choked the victim in the shower room/dress out area of MDC and subsequently was sentenced to 33 months in prison followed by three years of supervised release. Pendley pleaded guilty in February 2012 to obstructing justice by making false statements to law enforcement during their investigation of the assault on an inmate and was sentenced to a five year term of probation.
“Law enforcement officers who lie and obstruct justice to cover a fellow officer’s criminal acts do a disservice to the community that they swore to serve and protect,” said Acting Assistant Attorney General for Civil Rights Jocelyn Samuels. “As the prosecution of these three MDC corrections officers demonstrate, the Civil Rights Division, in conjunction with our partners at the U.S. Attorney’s Office and FBI, is committed to holding law enforcement officers accountable when they violate their sworn duty to uphold the Constitution.”
“A correction officer who actively covers up illegal violence perpetrated by another officer re-victimizes a victim, undermines the public’s confidence in the justice system and fosters a belief that correction officer violence perpetrated on inmates will be met with impunity rather than justice,” said Acting U.S. Attorney Steven C. Yarbrough of the District of New Mexico. “Such a culture cannot, and will not, be tolerated.”
“Correctional officers are given tremendous power to enforce the law. When that authority is abused, it's not just the civil rights of prison inmates that are threatened, but the public's trust in our democratic institutions as well,” said Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI. “The FBI, as the lead agency for investigating abuses of government officials, places a high priority on these cases. I would like to commend the FBI Special Agents who worked on this case, with the assistance of the U.S. Attorney's Office, the Justice Department's Civil Rights Division, the Bernalillo County Sheriff's Office and the Metropolitan Detention Center's executive management and internal affairs staff.”
This case was investigated by the Albuquerque Division of the FBI and was prosecuted by Assistant U.S. Attorney Mark T. Baker for the District of New Mexico and Trial Attorney Fara Gold of the Civil Rights Division.
Fairbanks Man sentenced to 87 months in prison for drug trafficking conspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a man from Fairbanks, Alaska, was sentenced in federal court in Anchorage for his role in an Anchorage and Fairbanks drug conspiracy.
Joshua Mustovich, 31, from Fairbanks, Alaska, was sentenced on September 6, 2013, by U.S. District Court Chief Judge Ralph R. Beistline. Mustovich received a sentence of 87 months in prison and 5 years of supervised release. Mustovich had previously pled guilty to count one of an indictment charging him with drug conspiracy.
According to Assistant U.S. Attorney’s Frank Russo and Kelly Cavanaugh, who prosecuted the case, in January 2012, Mustovich provided a duffle bag with $250,000 in cash, that he had received from Donnell Johnson, to a co-conspirator in Fairbanks, Alaska. That co-conspirator then drove to Anchorage and met up with Johnson, who exchanged the bag with money for another duffle bag full of 12 kilograms of cocaine. Mustovich was set to receive the 12 kilograms of cocaine in Fairbanks, but it was intercepted by law enforcement before the cocaine arrived in Fairbanks. Law enforcement then contacted and arrested Mustovich at the area in Fairbanks where he was scheduled to pick up the delivery of cocaine.
Mustovich was a member of a drug trafficking conspiracy where some of his co-conspirators attempted to conceal their drug trafficking by claiming they were involved in a legitimate business, specifically that they were “artists,” employees, or promoters of an Anchorage recording label and rap and hip hop performance group known as “Out Da Cutt” or “ODC” Entertainment and “UNDB” (Up North ‘D’ or Dope Boys). Members of this conspiracy would record rap and hip hop songs, post videos on Youtube.com, and perform local shows in Anchorage and Fairbanks. Much of their music glorified the lifestyle of selling illegal narcotics and committing other crimes. The lavish and extravagant lifestyle portrayed in their music and videos was supported by their sales of illegal narcotics.
Prior to imposing the sentence, Judge Beistline informed the defendant that the sentence was designed to punish him for engaging in such a crime and to impart to him respect for the law.
Mustovich was a member of a wide ranging conspiracy along with 13 co-conspirators located in Anchorage and Fairbanks. Donnell Johnson, Antonio Fleming, Dalon Johnson, Tevoris Carter, Emma Shine, and Terrance Fleming have pled guilty for their roles in connection with the conspiracy and await sentencing.
Ms. Loeffler commended the Federal Bureau of Investigation, the Drug Enforcement Administration, the United States Postal Inspection Service, the Internal Revenue Service Criminal Investigation Division, and the Anchorage Police Department for the investigation leading to the successful prosecution of Mustovich.
Eli Lilly Warehouse Thief Admits Participating in Additional Multimillion Dollar BurglariesRead the Press Release
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 today 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.
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(203) 821-3722 [email protected]East Moriches Man Pleads Guilty to Child Pornography PossessionRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, Jay Lockett Sears, a resident of East Moriches, New York, pled guilty before United States District Judge Denis R. Hurley to possessing child pornography.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge of the Federal Bureau of Investigation, New York Field Office; and Edward Webber, Commissioner, Suffolk County Police Department (“SCPD”).
According to court pleadings, Sears created hundreds of images of child pornography by taking photographs of children in public settings, such as beach club parties and other events, and then placing the heads of the children onto images of adult bodies engaged in sexual activity. Some of the images included pictures of Sears’ face pasted onto the bodies of other males so as to appear as if he were having sexual relations with children.
Sears came to the attention of the SCPD Computer Crimes Squad on January 11, 2013, after hundreds of child pornography images were found in a dumpster outside of the defendant’s East Moriches townhouse apartment building. The images had been discarded as Sears prepared to move out of his apartment.
“Sears victimized children by using their innocent faces to create child pornography. He then dragged them further into his aberrant fantasy world by adding his own images to these pictures. Such exploitation of children is one of our most important law enforcement priorities and will not be tolerated,” stated United States Attorney Lynch.
At sentencing on January 17, 2014, Sears faces up to 10 years in prison.
Parents who believe that their children may have been the victims of persons involved in child pornography should contact the Suffolk County Computer Crimes Squad at (631) 852-6279, or the Federal Bureau of Investigation at (631) 501-8600.
The government’s case is being prosecuted by Assistant United States Attorney Allen Bode.
The Defendant
Name: JAY LOCKETT SEARS
Age: 74Eagle Butte Woman Charged with Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury.
Nicole Condon, a/k/a Nicole Garreau, age 35, was indicted on August 21, 2013, for Distribution of a Controlled Substance. Condon 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 20 years of imprisonment and/or a $1,000,000 fine, a mandatory period of at least 3 years of supervised release, an additional 2 years of supervised release upon revocation, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Condon is presumed innocent until and unless proven guilty.
The Indictment alleges that on October 23, 2012, Condon knowingly and intentionally possessed with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Condon was remanded to the custody of the U.S. Marshals Service. A trial date has been set for November 5, 2013.Dupo Man Sentenced for Operating A Drug HouseRead the Press Release
Jacob Nelson, 32, of Dupo, was sentenced to 78 months in federal prison on September 9, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
A jury convicted Nelson of three federal charges on April 11, 2013, following a four day jury trial. The jury found Nelson guilty of Maintaining Drug Involved Premises at his home in the one hundred block of North Third Street in Dupo, IL. The jury also found Nelson guilty of unlawfully possessing two firearms. Nelson was acquitted on a fourth charge of distributing heroin with death resulting.
At his jury trial in April, Nelson’s neighbors testified that he had sold heroin, cocaine and marijuana “24/7” (every day and all night) between July 2010 and July 2011.
Nelson has been confined since his arrest in February, 2012. When Nelson is released from prison, he will be required to complete a term of three years of supervised release. Nelson was also ordered to pay a fine of $1,500, and to pay special assessments of $300.
The investigation which resulted in Nelson’s arrest, conviction and sentence was conducted by the Columbia, IL Police Department and the Drug Enforcement Administration.
The case is assigned to Assistant United States Attorney Robert L. Garrison.
District Man Sentenced to 3 ½-Year Prison TermRead the Press Release
For Possession of Child PornographyWASHINGTON – Keith Dietterle, 28, of Washington, D.C., was sentenced today to a 42-month prison term for possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Dietterle, a former intelligence analyst at the FBI, pled guilty to the charge in April 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Amy Berman Jackson. Upon completion of his prison term, Dietterle will be placed on 10 years of supervised release.
According to the government's evidence, on Nov. 7, 2012, Dietterle contacted a man he believed to be the father of an under-aged girl on a social network site. That man turned out to be an undercover officer with the FBI's Child Exploitation Task Force. Over the next several days, Dietterle engaged in online e-mail and instant message conversations with the undercover officer.
During this period of time, Dietterle sent the undercover officer three images of child pornography which depicted, among other things, adult men engaged in sexual acts with children. In addition, Dietterle sent the undercover officer various links to videos depicting graphic child pornography. Dietterle was arrested on Nov. 29, 2012.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorneys Julieanne Himelstein and Ari Redbord, who prosecuted the case.
13-309District Man Sentenced to 3 ½-Year Prison TermRead the Press Release
For Possession of Child PornographyWASHINGTON – Keith Dietterle, 28, of Washington, D.C., was sentenced today to a 42-month prison term for possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Dietterle, a former intelligence analyst at the FBI, pled guilty to the charge in April 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Amy Berman Jackson. Upon completion of his prison term, Dietterle will be placed on 10 years of supervised release.
According to the government's evidence, on Nov. 7, 2012, Dietterle contacted a man he believed to be the father of an under-aged girl on a social network site. That man turned out to be an undercover officer with the FBI's Child Exploitation Task Force. Over the next several days, Dietterle engaged in online e-mail and instant message conversations with the undercover officer.
During this period of time, Dietterle sent the undercover officer three images of child pornography which depicted, among other things, adult men engaged in sexual acts with children. In addition, Dietterle sent the undercover officer various links to videos depicting graphic child pornography. Dietterle was arrested on Nov. 29, 2012.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorneys Julieanne Himelstein and Ari Redbord, who prosecuted the case.
13-309Debt Collection Agency Executive Who Bribed Bank Official Is SentencedRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that PATRICK PINTO, 45, of Bohemia, N.Y., was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to two years of probation, the first six months of which PINTO must spend in home confinement, for bribing an executive of U.S. Bank. PINTO also was ordered to pay a $10,000 fine and perform 100 hours of community service.
According to court documents and statements made in court, Oxford Collection Agency (“Oxford”) was a private financial services company that engaged in accounts receivables management, primarily debt collecting, with offices in New York, Pennsylvania and Florida. Between 2007 and 2011, Oxford executives engaged in a multi-year scheme to defraud its lender, Connecticut-based Webster Bank, as well as its investors, clients and the commercial debtors that Oxford collected from. Oxford’s victims lost more than $12 million as a result of this scheme.
The investigation also revealed that Oxford sometimes obtained and retained business with its banking clients by paying bribes and kickbacks to bank officials. As part of the scheme, PINTO, a Vice President of Oxford, and other Oxford executives made monthly payments of between $2,500 and $3,500, which were hidden in cigar boxes, to an Assistant Vice President of U.S. Bank in Ohio. The bank official received at least $24,000 in bribes from Oxford.
U.S. Bank and Webster Bank received funds through the U.S. Department of the Treasury Troubled Asset Relief Program (TARP).
PINTO was arrested on December 7, 2012. On June 17, 2013, he waived his right to indictment and pleaded guilty to one count of conspiring to commit bank bribery.
In May 2012, Richard Pinto, Oxford Collection Agency’s Chairman of the Board, and his son, Peter Pinto, Oxford’s President and Chief Executive Officer, each pleaded guilty to one count of conspiracy to commit wire fraud, bank fraud, and money laundering and one count of wire fraud stemming from this scheme. In December 2012, Oxford Vice-President of Finance and Chief Financial Officer Randall Silver, Executive Vice President Charles Harris, and Chief Operations Officer Carlos Novelli, also pleaded guilty to various charges.
On January 30, 2013, Richard Pinto, who is now deceased, was sentenced to 60 months of imprisonment. The other defendants await sentencing.
PATRICK PINTO is the son of the late Richard Pinto.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), and the Connecticut Securities, Commodities, and Investor Fraud Task Force. The case is being prosecuted by Assistant U.S. Attorney Liam Brennan and Special U.S. Attorney John McReynolds.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
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(203) 821-3722 [email protected]Dallas Residents, Affiliated with Bridgemark Investment Group, SentencedRead the Press Release
Mortgage Fraud Conspiracy Resulted in More Than $10 Million in Fraudulently Obtained Loan Proceeds
DALLAS — Eric Damon Johnson, 51, and Tracie Elaine Stenson, 50, both of Dallas, were sentenced this morning by U.S. District Judge David C. Godbey to 48 months and 57 months, respectively, following their guilty pleas earlier this year to their roles in a mortgage fraud conspiracy. In addition, Judge Godbey ordered that they pay, jointly and severally, $3,753,539 in restitution. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Johnson pleaded guilty to a superseding information charging one count of conspiracy to commit wire fraud affecting a financial institution. Johnson was a licensed loan officer and mortgage broker and the president of Bridgemark Investment Group (BIG), which had offices on Hampton Road in Desoto, Texas. BIG’s motto was “Bridging the Gap between the Poor and the Wealthy.”
Stenson pleaded guilty to one count of conspiracy to commit wire fraud, as charged in the indictment returned by a federal grand jury in Dallas in October 2011. As the Chief of Operations at BIG, Stenson worked as a loan officer and processor.
According to documents filed in the case, Johnson and Stenson conspired to fraudulently obtain mortgage loans in excess of the true sales price of residential real estate properties by making false statements on loan applications and submitting fake invoices for construction upgrades or repairs that were never performed. The conspiracy resulted in more than $10 million in fraudulently-obtained loan proceeds.
BIG recruited individuals to purchase residential real estate as “investors” and Johnson and Stenson promised investors that BIG would find tenants to rent the property and make the mortgage payments. Johnson and Stenson agreed to make payments to the “investors” when the loan closed that were not disclosed to the mortgage lender on the HUD-1 Settlement Statement. Stenson prepared false loan applications for the investors that included, among other things, material misrepresentations regarding the borrower’s monthly income, intention to occupy the property, assets and liabilities. The loan applications were submitted to residential mortgage lenders, who on the basis of the false statements in the loan applications, agreed to fund primary and secondary mortgages for residential real estate properties.
This case was prosecuted in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
The investigation was conducted by the FBI and Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys J. Nicholas Bunch and P.J. Meitl prosecuted.
Computer Technology Firm CEO to Plead Guilty to Bank Fraud, Money LaunderingRead the Press Release
PROVIDENCE, R.I. – Sojin Lim, 60, of East Greenwich, R.I., Chief Executive Officer and Vice President of General Technologies Corporation, d/b/a CompUtopia, has agreed to plead guilty to one count each of bank fraud and money laundering in connection with an alleged scheme to defraud Rockland Trust Company of more than $5 million dollars, announced by United States Attorney Peter F. Neronha; John G. Collins, Acting Special Agent in Charge of the Boston office of the Internal Revenue Service Criminal Investigation; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
It is alleged in court documents that Lim devised a scheme to defraud Rockland Trust Company in order to satisfy a demand for repayment of a $5 million dollar line of credit with Citizens Bank. It is alleged that Lim falsified bank documents and overstated company revenues in order to secure the funding from Rockland Trust to finance repayment of the line of credit.
According to court documents, in the spring of 2011 Lim and CompUtopia were informed that the line of credit would no longer be carried by Citizens Bank and that CompUtopia was required to seek funding elsewhere. It is alleged that Lim devised a scheme to obtain the funding from Rockland Trust Company by providing false, fraudulent and fictitious information and documentation.
Court documents allege that Lim falsely stated CompUtopia’s accounts receivables as $7,066,268.04, when in fact CompUtopia’s accounts receivables were substantially less. In June 2011, based on the information and documents provided to Rockland Trust Company, the bank deposited $4,878,378.85 in an account which benefited CompUtopia. In April 2012, the Rockland Trust Company loan was increased to $5,350,000.
According to court documents, in late June 2011 Lim paid Citizens Bank $5,342,997.72 from funds provided by Rockland Trust and from a $464,610.37 loan taken against the defendant’s personal assets. CompUtopia filed for receivership in June 2012.
An informationis merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The maximum statutory penalty for bank fraud is 30 years in federal prison; a fine of $250,000; and 5 years of supervised release. The maximum statutory penalty for money laundering is 10 years in federal prison; a fine of $250,000; and 3 years supervised release.
The case is being prosecuted by Assistant U.S. Attorneys John P. McAdams and Sandra R. Hebert.
The matter was investigated by Internal Revenue Service Criminal Investigation, the FBI and Rhode Island State Police.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. The President established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Columbus County Man Sentenced for Drug and Gun ChargesRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that Friday in federal court, Judge Louise W. Flanagan sentenced Jason Antwan Williams , 26, of Columbus County to 58 months of months imprisonment, followed by 3 years of supervised release.
Williams was named in an Indictment filed on October 17, 2012, charging him with possession with the intent to distribute marijuana and cocaine; felon in possession of a firearm; and possession of a firearm with an obliterated serial number. On March 12, 2013, WILLIAMS pled guilty to those charges.
According to the investigation, WILLIAMS was the driver of a truck stopped by the Cary Police Department on April 5, 2012 after the truck left the area of an undercover drug bust. WILLIAMS was found to be in possession of marijuana, cocaine and a handgun with an obliterated serial number. WILLIAMS previously had been convicted of a felony.Investigation of this case was conducted by the Cary Police Department and the Federal Bureau of Investigation’s Raleigh-Durham Safe Streets Task Force comprised of the Cary Police Department, Durham County Sheriff’s Office, Durham Police Department, Garner Police Department, North Carolina Alcohol Law Enforcement, North Carolina State Highway Patrol and the Raleigh Police Department. Assistant United States Attorney S. Katherine Burnette represented the government.
Castro District Resident Sentenced for Methamphetamine DistributionRead the Press Release
SAN FRANCISCO – Jonathan Gildart was sentenced on September 4, 2013, to 87 months in prison for distributing methamphetamine in San Francisco’s Castro District, United States Attorney Melinda Haag announced.
Gildart pleaded guilty on May 22, 2013, to distribution and possession with intent to distribute methamphetamine. According to the plea agreement, Gildart admitted that on February 15, 2013, at a shipping business on Castro Street in San Francisco, he sold methamphetamine to an individual in exchange for $3,000. On that same date, at his apartment in the Castro District, Gildart possessed additional methamphetamine with the intent to distribute it to others. Both the shipping business and Gildart’s apartment were within 1,000 feet of two schools.
Gildart, age 31, was charged by Information on May 14, 2013, in anticipation of his guilty plea. The defendant has been in continuous federal custody since April 15, 2013.
“Methamphetamine has become a large problem in our communities, and has had a significant impact in various San Francisco neighborhoods. Our office is committed to seeking serious consequences for those dealing methamphetamine in our neighborhoods, particularly where methamphetamine is sold near schools,” said Ms. Haag.
The sentence was handed down by The Honorable Maxine M. Chesney, U.S. District Judge, following a guilty plea to one count of violation of distribution and possession with intent to distribute methamphetamine, 21 U.S.C. § 841(a)(1) and (b)(1)(B)(viii). Judge Chesney also sentenced the defendant to a four-year period of supervised release.
The prosecution is the result of an operation by the San Francisco Police Department and investigation by the Drug Enforcement Administration.
(Gildart Information )