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9 September 2013
Bastrop Resident Pleads Guilty to Attempting to Receive Child PornographyRead the Press Release
LAFAYETTE, La. – U.S. Attorney Stephanie A. Finley announced that Christopher Wallace, 25, of Bastrop, La., pleaded guilty Thursday before U.S. Magistrate Judge C. Michael Hill to attempting to receive child pornography.
According to evidence presented at the guilty plea, on January 31, 2011 Wallace began chatting online with who he thought was a 14-year-old girl. He asked the girl to perform sexual acts, and Wallace performed sex acts himself on a web camera. Wallace also asked the girl, who was actually a police officer, to perform sex acts on a web camera.
Wallace faces up to 20 years in prison, a $250,000 fine, and five years of supervised release. A sentencing date of January 10, 2014 was set. Homeland Security Investigations and the Lafayette Police Department conducted the investigation. Assistant U.S. Attorney John Luke Walker is prosecuting the case.This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be reported anonymously.
Attorney General Holder Meets with Mexican Attorney General <br /> About Mexico's Release of DEA Agent's KillerRead the Press Release
Attorney General Eric Holder met with Mexican Attorney General Jesús Murillo Karam today to discuss the release by the Mexican government of Rafael Caro Quintero, who was convicted of murdering Drug Enforcement Administration (DEA) Agent Enrique "Kiki" Camarena in February 1985.
Caro Quintero was convicted and sentenced in Mexico for charges related to the 1985 kidnapping, torture and murder of DEA Camarena. He was sentenced to serve 40 years in a Mexican prison in December 1989 but, after serving only 28 years of his sentence, a Mexican court ruled that he had been improperly tried in a Mexican federal court rather than a state court and ordered his release on August 9, 2013. Mexican authorities are seeking reversal of that decision. Nonetheless, Caro Quintero remains at large.
Attorney General Holder expressed grave concerns and disappointment immediately after learning of Caro Quintero’s premature release. At today’s meeting with Mexican Attorney General Murillo, Attorney General Holder reiterated those concerns.“I appreciated the chance to discuss the recent developments in the case connected to the murder of DEA special agent Kiki Camarena and other important matters with Attorney General Murillo this afternoon. I look forward to working with him to continue to advance our shared commitment to the rule of law. Nothing will weaken our resolve to hold accountable those who commit acts of violence against our brave law enforcement agents,” said Attorney General Holder. “The kidnapping and murder of Agent Camarena was a heinous crime that shocked criminal justice professionals on both sides of the border. Like many, I was surprised and deeply concerned to learn about the release of Rafael Caro Quintero last month. We will continue to work with our Mexican counterparts to ensure that Caro Quintero does not escape justice.”
In May 1987, the Department of Justice, through the United States Attorney’s Office in the Central District of California, indicted Caro Quintero and several others, for conspiracy and racketeering charges related to the kidnapping, torture and murder in Mexico of Agent Camarena. Since then, the Department of Justice has continued to make clear to Mexican authorities the continued interest of the United States in ensuring that Caro Quintero faces justice.
Aryan Brotherhood of Texas Gang Member Pleads Guilty to Federal Racketeering ChargesRead the Press Release
A member of the Aryan Brotherhood of Texas (ABT) gang pleaded guilty today to racketeering charges related to his membership in the ABT’s criminal enterprise, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Benjamin Troy Johnson, aka “South,” 42, of Corpus Christi, Texas, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Johnson and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Johnson and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Johnson has admitted to being a member of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and the promotion of white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to commit murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect while his conduct is observed by the members of the ABT.
Judge Lake has set sentencing for Jan. 30, 2013, at which time Johnson faces a maximum penalty of life in prison.Johnson is one of 36 defendants charged with, among other things, conducting racketeering activity through the ABT criminal enterprise. He is the 13th defendant charged in the indictment to plead guilty.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement -Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Tarrant County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Southern District of Texas.
Aryan Brotherhood of Texas Gang Member Pleads Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON - A member of the Aryan Brotherhood of Texas (ABT) gang pleaded guilty today to racketeering charges related to his membership in the ABT’s criminal enterprise, announced United States Attorney Kenneth Magidson Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Benjamin Troy Johnson, aka “South,” 42, of Corpus Christi, has pleaded guilty before U.S. District Judge Sim Lake to one count of conspiracy to participate in racketeering activity.
According to court documents, Johnson and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Johnson and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Johnson has admitted to being a member of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and the promotion of white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect while his conduct is observed by the members of the ABT.
Judge Lake has set sentencing for Jan. 30, 2014, at which time Johnson faces a maximum penalty of life in prison.Johnson is one of 36 defendants charged with, among other things, conducting racketeering activity through the ABT criminal enterprise. He is the 13th defendant charged in the indictment to plead guilty.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; sheriff’s offices in Harris, Tarrant, Atascosa, Orange and Waller Counties; police departments in Alvin, Carrollton and Mesquite Texas; as well as the Montgomery and Atascosa County District Attorney’s Offices.
The case is being prosecuted by the U.S. Attorney’s Office of the Southern District of Texas and the Criminal Division’s Organized Crime and Gang Section.
Albuquerque Man Pleads Guilty to Federal Wire Fraud and Money Laundering ChargesRead the Press Release
ALBUQUERQUE – Rodney Chavez, 47, of Albuquerque, N.M., pleaded guilty this morning to wire fraud and conspiracy to commit money laundering charges under a plea agreement that requires him to serve a 63 month prison sentence and pay full restitution, estimated at $590,250.00, to the victims of his criminal conduct. The guilty plea was announced by Acting U.S. Attorney Steven C. Yarbrough and Dawn Mertz, Special Agent in Charge of the Phoenix Division of IRS Criminal Investigation.
Chavez and his co-defendants, Wayne Brian Church, Jr., 27, and Joshua G. Ellis, 43, both of Albuquerque, were charged in Jan. 2012, with wire fraud and money laundering charges in a 22-count indictment that generally alleged that the three men defrauded investors in a real estate venture of more than $800,000. Chavez and Church were arrested based on the charges in the indictment in Feb. 2012. Ellis has yet to be arrested and is considered a fugitive.
After Church pleaded guilty in Aug. 2012 to a felony information charging him with conspiracy to commit wire fraud, Chavez and Ellis were charged in a 21-count superseding indictment that was filed in Oct. 2012. The superseding indictment charged Chavez and Ellis with conspiracy to commit wire fraud and five substantive wire fraud offenses. It also charged Chavez with conspiracy to launder the proceeds generated by their fraudulent activities and 14 substantive money laundering offenses, and sought forfeiture of the proceeds of the defendants’ unlawful activities.
During today’s plea hearing, Chavez pleaded guilty to Counts 6 and 7 of the superseding indictment, charging him with wire fraud and conspiracy to commit money laundering, respectively. In his plea agreement, Chavez admitted that, between March 2010 and April 2011, he designed and executed a scheme to defraud a group of investors of their interest in certain properties located in Puerto Peñasco, Mexico. Chavez embarked on the scheme after learning that the investors were interested in selling the properties at a substantial loss after realizing that they would not be able to recoup the full amount of their original investments. In March 2010, Chavez contacted a representative of the investor group under an assumed identity and entered into an agreement to sell the properties on behalf of the investors with the understanding that the investors would receive a return of 30% of their original investments. Despite his stated intention to sell the properties and distribute the agreed amount to the investors, Chavez admitted that he never intended to honor that agreement and instead intended to defraud the investors by selling the properties and retaining the proceeds for himself.
According to the plea agreement, while falsely assuring investors of his efforts to sell the properties on their behalf, Chavez hired a real estate agent to sell the properties and sold five properties, the sales of which generated approximately $847,370.52 in proceeds. After the proceeds were wire-transferred to a bank in Albuquerque with assistance from Church, Chavez did not distribute the proceeds to the investors. Instead, Chavez and Church kept the proceeds and conspired to conceal the source of the proceeds by transferring the money to bank accounts held in the names of businesses they exclusively controlled. None of the proceeds from the sale of properties were returned to the investors.
“Rodney Chavez took advantage of investors who already had lost the value of their investments by falsely promising to help them recoup part of their losses and instead using their proceeds to line his own pockets. Ultimately, the truth caught up to Rodney Chavez and he will spend more than five years in prison for his fraudulent conduct,” said Acting U.S. Attorney Steven C. Yarbrough. “Protecting investors from fraudulent schemes like the one perpetuated by Chavez and his cohorts is a priority for my Office, and those who commit these crimes will be aggressively tracked down and prosecuted.”
“Mr. Chavez preyed on his victims through a pattern of lies and deceit. He created an elaborate scheme that he used to steal. By pleading guilty today and accepting responsibility, Mr. Chavez has taken a positive first step in making amends for the harm he has caused the victims in this case,” stated IRS Criminal Investigation Special Agent in Charge Dawn Mertz.
Chavez will remain in custody pending his sentencing hearing, which has yet to be scheduled. Church remains on conditions of release pending his sentencing hearing when he faces a maximum penalty of 30 years in prison. The charges in the superseding indictment against Ellis are merely accusations and he is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney John C. Anderson.
8 September 2013
Smith County Man Pleads GuiltyTo Possessing, Distributing Child PornographyRead the Press Release
WICHITA, KAN. - A Smith County, Kan., man pleaded guilty Monday to possessing and sending child pornography, U.S. Attorney Barry Grissom said. The man’s plea came after an unsuccessful effort to suppress evidence gathered by Internet service provider AOL.
Walter E. Ackerman, 56, Lebanon, Kan., pleaded guilty to one count of distributing child pornography and one count of possessing child pornography. In his plea, he admitted using AOL email to send child pornography to another user. The child pornography was detected by AOL using an automated image detection and filtering process that scans for malware, viruses and illegal images such as child pornography. AOL sent the information to the National Center for Missing and Exploited Children (NCMEC), which in turn notified the Kansas Internet Crimes Against Children (ICAC) Task Force in the Wichita/Sedgwick County Exploited and Missing Children’s Unit (EMCU).
Ackerman’s attorney moved to suppress the email evidence on the grounds that the evidence was obtained through an illegal search and seizure with AOL and NECMEC acting as government investigators without a search warrant. U.S. District Judge Eric Melgren ruled that neither AOL nor NCMEC are state actors and the Fourth Amendment against unreasonable search and seizure does not apply to them.
Sentencing is set for Nov. 24. He faces a penalty of not less than five years and not more than 20 years and a fine up to $250,000 on the distribution count and a maximum penalty of 10 years on the other count.
Grissom commended Immigration and Customs Enforcement, the Kansas Internet Crimes Against Children Task Force, the Wichita/Sedgwick County Exploited and Missing Children’s Unit and Assistant U.S. Attorney Jason Hart for their work on the case.
7 September 2013
Montgomery Man Pleads Guilty to Cashing Fraudlent Tax Refund ChecksRead the Press Release
Montgomery, Alabama - David Lee Haigler, of Montgomery, Ala., pleaded guilty in U.S. District Court for the Middle District of Alabama yesterday to one count of theft of public funds and to one count of passing U.S. Treasury checks with forged endorsements, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama.
According to court documents, between November 2011 and July 2012, Haigler obtained 263 fraudulent U.S. Treasury refund checks and refund anticipation loan checks totaling $606,781.34. The refund checks were in the names of different individuals who had not authorized Haigler to cash them. Haigler cashed the refund checks at a store in Millbrook, Ala., by providing the store with copies of fictitious powers of attorney in the names of the individuals on the checks.
For his involvement in the scheme, Haigler faces a maximum potential sentence of 20 years in jail and a fine of up to $500,000.
Trial Attorneys Jason Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Todd Brown are prosecuting the case. Special Agents of IRS - Criminal Investigation and the U.S. Secret Service conducted the investigation.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617
6 September 2013
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Scott Weaver, 29, of South Bend, Indiana pled guilty before District Judge Christopher A. Nuechterlein to the felony offense of knowingly distributing a mixture or substance containing methamphetamine. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 12/5/2013.This case resulted from an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Juan Gallardo, 30, of LaPorte, Indiana was sentenced by District Judge Jon E. DeGuilio to 37 months imprisonment with 4 years of supervised release after pleading guilty to the felony offense of knowingly and intentionally conspiring to deliver a mixture or substance that contained cocaine.According to documents filed in this case, between February 2012 and December 2012, Gallardo and several others were involved in distributing cocaine in LaPorte County. This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS:
Allen Ray Evens, 25, of Gary, Indiana, was sentenced by Chief Judge Philip Simon to 27 months imprisonment and 1 year of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed in this case, Evens had a previous conviction for robbery and wason probation at the time of his arrest. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force and the Gary Police Department.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Michael Weatherford, 70, of Attica, Indiana, was sentenced by Senior District Judge James Moody to 108 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a stolen firearm. According to documents filed by the government in this case, Weatherford has six prior felony convictions including burglary, breaking and entering, distribution of a controlled substance and possession of a firearm by a convicted felon.Weatherford was arrested and charged after a confrontation with a conservation officer in a wooded area near Attica, Indiana. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Brandon Earl, 31, of Demotte, Indiana, a defendant in the case US v Humphrey et al., was sentenced by Senior District Judge Rudy Lozano to 41 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of conspiracy to possess with the intent to distribute heroin.According to documents filed in this case, Earl was charged along with eight others with participation in a heroin ring operating in the Newton County area. This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorneys Jacqueline Jacobs and Jennifer Chang-Adiga.
U.S. Department of Justice Awards $6 Million to State of Nevada to Assist Crime VictimsRead the Press Release
LAS VEGAS, Nev. – Daniel G. Bogden, United States Attorney for Nevada, is pleased to announce that today the U.S. Department of Justice awarded $6 million from the 2013 Crime Victims Fund to the State of Nevada for victim compensation and assistance programs. Victim assistance funds in the amount of $3,954,131, and victim compensation funds in the amount of $2,054,000, have been awarded to the State of Nevada Departments of Health and Human Services and Administration to provide support and services to thousands of victims throughout the state.
Since the Crime Victims Fund was established in 1986, crime victims across Nevada have received services and economic assistance totaling over $80 million , said U.S. Attorney Bogden. “The United States Attorney’s Office is pleased to support both the collection efforts for the Crime Victims Fund, which provides these program dollars, and the allocation of these resources to help Nevada’s crime victims.”
Crime victim assistance funds are competitively awarded by the State to local community-based organizations that provide direct services to crime victims. Funding is provided to domestic violence shelters, rape crisis centers, child abuse victims programs and other initiatives that provide counseling, advocacy or emergency transportation to victims. Nevada can also use these funds for sexual assault programs or victim service units in law enforcement agencies, prosecutors offices and social service agencies.
Nevada’s compensation program receives annual grants equal to 60 percent of its total payout to crime victims in a previous year. Compensation programs work similarly to private insurance, providing reimbursement to, or on behalf of, crime victims for expenses such as medical costs, mental health counseling, funeral and burial costs, and lost wages, as a result of being a crime victim.
The Crime Victims Fund is supported primarily by fines paid by federal criminal offenders – not taxpayers. These fines are collected by United States Attorney’s Offices, the United States Courts, and the Federal Bureau of Prisons. Fines collected in one year are deposited into the Fund and are available for grant awards the following year. The USA Patriot Act of 2001 also allowed private gifts, donations and bequests to the Crime Victims Fund. Over 90 percent of Fund deposits are distributed annually by the Department of Justice to states and territories to support state victim compensation and victim assistance programs. Remaining funds are used for training and technical assistance, national demonstration projects and to improve handling of child abuse cases in Indian communities. In addition, these funds support victim witness coordinator and advocate positions for U.S. Attorney Offices, victim specialist positions in the FBI and a federal victim notification system. More information on Nevada’s victim compensation and victim assistance efforts is available from the State of Nevada Department of Administration Victims of Crimes Program at (702) 486-2740 in southern Nevada or (775) 688-2900 in northern Nevada, or the State of Nevada Department of Health and Human Services, Division of Child and Family Services, at (775) 684-4400. Questions may also be directed to OJP’s Office of Communications at (202) 307-0703.Two Men Found on Stateless Vessel in International Waters with Large Amount of CocaineRead the Press Release
BOSTON – Two men were arrested for transporting cocaine on a sailboat bound for Montreal.
Hicham Ramzi Nahra, 27, of Canada, and Benjamin Celma-Sedo, 49, of Spain, were charged today in a criminal complaint with possession of cocaine with intent to distribute on board a vessel subject to the jurisdiction of the United States.
The complaint alleges that by the United States Coast Guard found Nahra and Celm-Sedo on board a sailboat, named the Callisto, in international waters with 621 kilograms of cocaine. The cocaine has an approximate street value of more than $20 million.
On Sept. 2, the crew of the Coast Guard Cutter Dependable interdicted the 49-foot sailing vessel Elegance, in international waters about 400 nautical miles east of the United States. The Elegance was flying a Canadian flag, but was determined to be a stateless vessel, and according to Canadian law enforcement authorities, was never registered as a Canadian vessel. It was also determined that the Elegance was in fact the Callisto, a sailing vessel whose last port of call was in Venezuela. After receiving permission from the Canadian government to board and search the Callisto, U.S. Coast Guard crew members found 23 large, heavy plastic mesh bags each containing 25-27 kilogram brick shaped packages containing cocaine.
If convicted, Nahra and Celma face a maximum term of 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a $1 million fine.
United States Attorney Carmen M. Ortiz; Rear Admiral Dan Abel, Commander in Charge of the First Coast Guard District; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston made the announcement today. This case is being prosecuted by Assistant U.S. Attorney Neil Gallagher of Ortiz’s Drug Task Force.
Two Individuals Indicted and Arrested for ExtortionRead the Press Release
SAN JUAN, Puerto Rico – U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez announced the indictment and arrest of 2 defendants charged with Attempted Hobbs Act extortion, Travel Act, and Conspiracy. Defendants Jesús Damiàn Martínez-Silva and Jonathan Montes-Martínez, aiding and abetting one another, attempted to obstruct, delay, and affect commerce and the movement of articles and commodities in commerce by extortion. The defendants attempted to obtain the purported property of RV, a female victim, in the form of $1,000.00 with RV’s consent induced by the wrongful use of force, violence, and fear.
On August 28, 2013, the defendants participated in a scheme in which the ring would call the victim, describe her 78-yr old mother’s home, and threaten to kill her unless she paid them money. The victim paid $1,000 and then was called the next day, August 29, and was extorted for more money. The victim called the FBI and the FBI did a sting and the defendants were arrested after Jesús Damiàn Martínez-Silva and another individual collected $1,000 in government funds from the victim.
Assistant U.S. Attorney Luke Cass is in charge of the prosecution of the case. If convicted the defendants face up to thirty years imprisonment. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Two Illegal Aliens Sentenced in Scheme to Create and Sell Fraudulent Identification DocumentsRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Henry Ramos- Agustin, age 37, a Guatemalan citizen illegally residing in Cambridge, Maryland, today to 42 months in prison followed by one year of supervised release for conspiring to sell fraudulent identification documents and aggravated identity theft. Judge Bennett sentenced Antonio Abraham Cruz-Cruz, age 28, a Mexican citizen illegally residing in Adelphi, Maryland, yesterday to four years in prison followed by one year of supervised release for the same offenses. Judge Bennett further imposed a special condition that both defendants, upon completion of their sentences, be surrendered to immigration authorities for deportation proceedings.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
“Document fraud poses a threat to national security and puts the security of our communities at risk because it creates a vulnerability that may enable terrorists, criminals and illegal aliens to gain entry to and remain in the United States,” said HSI Baltimore Special Agent in Charge William Winter. “This investigation resulted in the arrest and indictment of a document mill leader and co-conspirator operating out of Maryland. Homeland Security Investigations will move aggressively to investigate and bring to justice those who potentially compromise the integrity of America's legal immigration system.”
According to their pleas and a stipulation at Cruz-Cruz’s sentencing hearing, from October 2011 through March, 2013, Cruz-Cruz manufactured at least 2,000 permanent resident cards, social security cards and driver’s licenses, which he offered for sale, or had Ramos-Agustin and others sell, to individuals illegally present in the United States. These documents were offered for sale through word of mouth and the distribution of business cards which appeared to be offering other services, such as painting or automobile repairs, but were actually used for obtaining customers for the scheme. Orders were generally received by email or text message which included a picture and the biographical information the customer wanted on the cards. Salesmen such as Ramos-Agustin provided the photographs and personal information to Cruz-Cruz, who manufactured the requested fake documents. The completed documents were returned to Ramos-Agustin or other document vendors who then delivered them to the customer and obtained payment.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and HSI Resident Agent in Charge Ocean City for their work in the investigation and thanked the Anne Arundel County Police Department and Baltimore County Police Department for their assistance in the case. Mr. Rosenstein thanked Assistant United States Attorney Tamera L. Fine, who prosecuted the case.
Two Convicted and Sentenced in International Marijuana Smuggling OperationRead the Press Release
ALEXANDRIA, Va. – Ricardo Avelar Valdez, 47, of Gainesville, Va. was sentenced today to 87 months in prison, followed by a term of three years of supervised release, for his role in a marijuana smuggling operation based in Northern Virginia. The operation attempted to smuggle several multi-thousand pound loads of marijuana from Mexico to Prince William County, Va. The defendant has also agreed to forfeit $2 million representing the proceeds of his drug trafficking activities as well as two vehicles and drug paraphernalia.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and Scot R. Rittenberg, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C. Field Office, made the announcement after sentencing by United States District Judge Anthony J. Trenga.
Valdez pleaded guilty on May 9, 2013. According to court documents, between December 2011 and September 2012, HSI special agents and U.S. Customs and Border Protection officers made three significant marijuana seizures at ports of entry in Texas. Each of these shipments was tied to this operation. The marijuana, which was concealed in frozen fruit pulp and furniture parts, was, in each case, being shipped within hidden compartments in commercial tractor trailers to business addresses located in Prince William County. During this investigation, law enforcement in Texas seized approximately 10,000 pounds of marijuana, all of which was being shipped by Valdez and his co-defendants to the Eastern District of Virginia.
On August 16, 2013, Valdez’s co-defendant, Francisco Cirilio Vargas-Aquino, aka “Francisco C. Vargas,” and “Miguel,” 49, of Manassas, Va. was sentenced by United States District Judge Anthony J. Trenga to 87 months in prison, followed by four years of supervised release for his role in this drug trafficking operation.
This ongoing Organized Crime and Drug Enforcement Task Force investigation, dubbed “Operation Buena Vida,” is being led by HSI’s Washington D.C. Field Office, in partnership with the Drug Enforcement Administration and the Fairfax County Police Department.
The prosecution is being handled by Assistant U.S. Attorney Mary K. Daly and Special Assistant U.S. Attorney Elizabeth Eriksen.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Three Charged with Operating Fraudulent Federal Income Tax Refund SchemeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned an 18-count indictment charging three individuals with operating an extensive federal income tax refund scheme. The indictment, which was returned yesterday, charges KENYA MALCOLM, 34, and CHARLES ROSS, 40, both of Surprise, Ariz., and BERNARD BRANTLEY, 43, of Waterbury, Conn., with various conspiracy, fraud, theft and identity theft offenses.
The indictment alleges that between November 2012 and May 2013, MALCOLM, BRANTLEY, ROSS and others conspired to file false federal income tax returns in the names of individuals without the individuals’ knowledge. As part of the scheme, BRANTLEY, ROSS and others advertised to victims that they were eligible for “Obama stimulus money” or “government funding” through a prepaid debit card, and then obtained personal identifying information from the victims. MALCOLM, who operated a business in Arizona called “Biggest Refund Taxes,” used the victims’ names, dates of birth, and Social Security Numbers to prepare and file false federal income tax returns. MALCOLM then directed tax refunds totaling more than $2.5 million to be deposited partially into bank accounts controlled by MALCOLM, her family members, her employees, and ROSS, and partially into bank accounts linked to prepaid debit cards that were sent to the victims.
The indictment charges MALCOLM, BRANTLEY and ROSS with one count of conspiracy, which carries a maximum term of imprisonment of five years. The indictment also charges each defendant with six counts of mail fraud and six counts of wire fraud, which carry a maximum term of imprisonment of 30 years on each count. The defendants are also charged with theft of public money, a charge that carries a maximum term of imprisonment of 10 years. Finally, MALCOLM and BRANTLEY are each charged with one count of aggravated identity theft, an offense that carries a mandatory consecutive two-year prison term.
The case has been assigned to Senior U.S. District Judge Warren W. Eginton in Bridgeport.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation and the United States Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala.
Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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(203) 821-3722 [email protected]Thirteen Arrested During Joint Investigation of Massena Cocaine and Heroin RingRead the Press Release
Investigation Yields Seizures of Cocaine, Crack, Heroin, and Weapons
MASSENA, NEW YORK - United States Attorney Richard S. Hartunian announced that law enforcement officers have arrested twelve individuals on federal drug trafficking charges. A superseding indictment charges the following people with conspiracy to distribute over 500 grams of cocaine, over 28 grams of cocaine base (crack), and heroin, in Franklin, St. Lawrence, and Clinton Counties:
Patrick Lloyd, aka “Problem,” 25, of New York City
Jessica Monaghan, 26, of Massena, New York
Codi Burke, 21, of Massena, New York
Michael Spencer, aka “Don,” 25, of New York City
Bernie Russo, 35, of Massena, New York
Kimberly Jandrew, 27, of Massena, New York
Justin Brailsford, 25, of Massena, New York
Jon Garcia, 22, of New York City
Zachary Huto, 21, of Massena, New York
Leslie Moore, 27, of Massena, New York
Paul Williams, aka “Cash,” 30, of Massena, New YorkLloyd, Garcia, and Williams are in custody on state charges. Monaghan, Burke, Spencer, Russo, Jandrew, Brailsford, Huto, and Moore were arrested this morning. A twelfth person is charged in the indictment but has not yet been arrested. Two others were arrested this morning and are being charged by federal criminal complaints with participating in the drug conspiracy. Four search warrants were executed in Massena today, resulting in seizures of handguns, cocaine, and heroin.
Brailsford and Garcia are also charged with possessing with intent to distribute cocaine and heroin on or about July 6, 2013, in Clinton County (Count 2). Williams is also charged with possessing with intent to distribute over 28 grams of cocaine base (crack) on or about August 8, 2013, in Clinton County (Count 3).
The charges contained in the indictment are merely accusations and the defendants are presumed innocent until and unless proven guilty.
If convicted, each defendant except Lloyd could face a mandatory minimum sentence of five (5) years imprisonment and a maximum sentence that includes imprisonment for forty (40) years and a $5,000,000 fine. The superseding indictment alleges that Lloyd has a prior drug felony conviction, so Lloyd faces a mandatory minimum sentence of imprisonment for ten (10) years and a maximum sentence that includes imprisonment for life and a $10,000,000 fine.
U.S. Attorney Hartunian said: “The St. Lawrence River Valley is the intersection of the front line for border security and the outer reach of big city drug suppliers who travel north seeking new and expanded markets. This case illustrates how vigilance and collaboration can combat threats to our communities, as a multitude of federal, state, local, and tribal agencies worked together to dismantle a ring that brought in and distributed cocaine, crack, and heroin, and employed firearms and violence. The success of our effort to preserve public safety and the idyllic charm of the area depends on our shared commitment to robust enforcement, deterrence, and prevention.”
“While the violence and street-level dealing that comes with drug trafficking are local crimes, the criminal networks behind them stretch to other cities, other states and other countries,” said James C. Spero, Special Agent-in-Charge of ICE Homeland Security Investigations (HSI) in Buffalo. “To effectively attack these networks takes a team effort. An outstanding team investigation by our Border Enforcement Security Task Force is what led to today’s arrests and is what will lead to the complete dismantling of these criminal organizations.”
St. Lawrence County District Attorney Nicole Duvé said: “Today is another important step in addressing the increasing presence of urban heroin and cocaine supply networks in northern St. Lawrence and Franklin Counties. The cooperative efforts of federal, state and local law enforcement agencies, together with assistance from local citizens are the key to reclaiming our communities. I encourage the public be vigilant and to continue to help law enforcement keep our neighborhoods and our children safe and drug free.”
Massena Police Chief Timmy J. Currier said: “Enforcement – specifically arresting and holding those responsible for trafficking and conspiring to provide their product – is important, but the truth is, there is a market for that product. There is a reason drug sales occur: we have people buying illegal drugs. We must continue to work hard to find ways to prevent our teenagers and young adults from becoming drug users, from improving parenting skills, increasing the life skills and decision-making of our children, and developing the economy in our area. Tackling this issue from every angle is our best chance at success.”
Franklin County District Attorney Derek Champagne said: “As District Attorney Duve and I discussed two weeks ago in Franklin County, these criminal groups have no boundaries and it is only through local, state and federal cooperation that we can make a difference and keep organized drug distribution networks out of the North Country. I cannot thank the US Attorney’s Office enough for their leadership in dismantling this group today.”
The investigation revealed that this organization obtained large quantities of cocaine, heroin, and crack from suppliers in New York City and used couriers to transport the drugs to Massena, where the organization’s distribution network sold ounce and gram quantities of the drugs to wholesale drug dealers and drug users in the area. Members of the organization engaged in acts of intimidation and violence.
Seizures by law enforcement officers during this investigation total about 380 grams of cocaine, about 377 grams of heroin, nearly 100 grams of crack, 5 handguns, and over $11,000 in cash.
The superseding indictment is the result of a year-long Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by Homeland Security Investigations (HSI), the Massena Police Department (MPD), the Saint Lawrence County Sheriff’s Office, and the New York State Police (NYSP). The District Attorneys of Clinton, Franklin, and St. Lawrence Counties, the Saint Regis Mohawk Tribal Police Department, the United States Customs and Border Protection Office of Air and Marine, the United States Customs and Border Protection Office of Field Operations, the Drug Enforcement Administration, the Potsdam Police Department, the Royal Canadian Mounted Police, the New York Attorney General’s Office, the Oneida Indian Nation Police, and the United States Border Patrol assisted in the investigation.
The United States is represented in this prosecution by Assistant U.S. Attorney Daniel C. Gardner and Assistant U.S. Attorney Katherine Kopita.
Statement by Assistant Attorney General Bill Baer on Remedy<br /> to Address Apple’s Price Fixing of E-BooksRead the Press Release
Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division issued the following statement today after the U.S. District Court for the Southern District of New York issued an order regarding a remedy to address Apple Inc.’s illegal conduct:
“We’re pleased that the court has issued an order supporting the Department of Justice’s efforts to address Apple’s illegal price fixing conduct. Consumers will continue to benefit from lower e-books prices as a result of the department’s enforcement action to restore competition in this important industry. By appointing an external monitor to ensure future compliance with the antitrust laws, the court has helped protect consumers from further misconduct by Apple. The court’s ruling reinforces the victory the department has won for consumers.”
The court’s order requires Apple to modify its existing agreements with the five major publishers with which it conspired – Hachette Book Group (USA), HarperCollins Publishers L.L.C., Holtzbrinck Publishers LLC, which does business as Macmillan, Penguin Group (USA) Inc. and Simon & Schuster Inc. – to allow retail price competition and to eliminate the most favored nation (MFN) pricing clauses that led to higher e-book prices. Apple is prohibited from serving as a conduit of information among the conspiring publishers or from retaliating against publishers for refusing to sell e-books on agency terms. Apple is also prohibited from entering into agreements with e-books publishers that are likely to increase the prices at which Apple’s competitor retailers may sell that content.
Additionally, the court has decided to appoint an external monitor to ensure that Apple’s internal antitrust compliance policies will be sufficient to catch future anticompetitive activities before they result in harm to consumers. The monitor, whose salary and expenses will be paid by Apple, will work with an internal antitrust compliance officer who will be hired by and report exclusively to the outside directors comprising Apple’s audit committee. The antitrust compliance officer will be responsible for training Apple’s senior executives about the antitrust laws and ensuring that Apple abides by the relief ordered by the court.
On April 11, 2012, the department filed a civil antitrust lawsuit in the U.S. District Court for the Southern District of New York against Apple, Hachette, HarperCollins, Macmillan, Penguin and Simon & Schuster, for conspiring to end e-book retailers’ freedom to compete on price by taking control of pricing from e-book retailers and substantially increasing the prices that consumers paid for e-books.
At the same time that it filed the lawsuit, the department reached settlements with three of the publishers – Hachette, HarperCollins and Simon & Schuster. Those settlements were approved by the court in September 2012. The department settled with Penguin on Dec. 18, 2012, and with Macmillan on Feb. 8, 2013. The Penguin settlement was approved by the court on May 20, 2013, and the Macmillan settlement on Aug. 14, 2013. Under the settlements, each publisher was required to terminate agreements that prevented e-book retailers from lowering the prices at which they sell e-books to consumers and to allow for retail price competition in renegotiated e-book distribution agreements.
The department’s trial against Apple, which was overseen by Judge Denise Cote, began on June 3, 2013. The trial lasted for three weeks, with closing arguments taking place on June 20, 2013. The court issued its opinion that Apple Inc. violated Section 1 of the Sherman Act on July 10, 2013. The department and 33 state attorneys general submitted a proposed remedy to the court on Aug. 2, 2013. Apple submitted a separate remedy. The court held remedy hearings on Aug. 9 and 27, 2013, and asked the parties to revise their proposals. The department, 33 state attorneys general and Apple submitted a joint remedy to the court on Sept. 5, 2013.Springfield Man Pleads Guilty to Producing Child PornographyRead the Press Release
ALEXANDRIA, Va. –Andrew Choi, 35, of Springfield, Va., pleaded guilty today to charges of production of child pornography.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Douglas W. Keen, Chief of Police for the Manassas City Police Department, made the announcement after Choi’s hearing before United States District Court Judge Anthony J. Trenga.
“The targeting and sexual exploitation of our kids represents some of the most evil and heinous criminal acts imaginable,” said U.S. Attorney Neil H. MacBride. “We will aggressively pursue and prosecute all those who, like defendant Choi, have engaged in this deplorable, criminal conduct.”
Chief Keen of Manassas City Police stated that “this is another instance of agencies working together, in cooperation with the US Attorney’s Office, to ensure that the safety of children remains our top priority in these types of cases.”
According to court documents and court proceedings today, Choi engaged in online video chats with at least ten boys under the age of 18 between May 2012 and January 2013. The underage boys performed sex acts on camera and Choi recorded it using a screen capture program. Approximately 600 of these types of videos were discovered on Choi’s computer.
Choi pled guilty to two counts of production of child pornography, and faces a mandatory minimum of 15 years and maximum of 30 years in prison at sentencing, which is scheduled for January 24, 2014
The investigation was conducted by the Manassas City Police Department and the Northern Virginia/DC Internet Crimes against Children Task Force. Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division, is prosecuting the case on behalf of the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.usdoj.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on http://pacer.uspci.uscourts.gov.Sheboygan Resident Sentenced to 10 Years in Prison for herion DistributionRead the Press Release
United States Attorney James L. Santelle announced today that United States District Judge Lynn Adelman sentenced Osvaldo Reyes (age: 32) of Sheboygan to ten years in prison for distribution of heroin in Sheboygan and the surrounding areas. Reyes, who pled guilty to these charges, was indicted on March 12, 2013.
According to the plea agreement filed in court, from at least April 1, 2012, through on or about March 12, 2013, a conspiracy involving the defendant existed to distribute heroin in Sheboygan and elsewhere. The conspirators obtained heroin and organized a standardized method of doing business, maintained continuing relationships, and relied upon repeated transactions.
At sentencing Judge Adelman called this an “extensive heroin operation.” Assistant United States Attorney Karine Moreno-Taxman described Reyes as a substantial heroin distributor in the Sheboygan area.
This investigation was successful because of a cooperative effort by the Sheboygan County Metro Drug Enforcement Group, the Manitowoc County Metro Drug Enforcement Group and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Karine Moreno-Taxman.
Shakopee Man Sentenced for Using Other People’s Food StampsRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a 47-year-old Shakopee man was sentenced for using other people’s food stamps. On September 5, 2013, United States District Judge Paul A. Magnuson sentenced Chin Son Kim to three years of probation on one count of food stamp fraud. Kim was charged on April 18, 2013, and pleaded guilty on June 12, 2013. Kim was ordered to pay restitution of $29,816.
In his plea agreement, Kim admitted that between November 2010 and July 2012, he obtained Supplemental Nutrition and Assistance Program (“SNAP”) cards, commonly known as food stamps, from the true recipients of those benefits. To acquire the cards, he waited near a charity facility in St. Paul, as well as at other locations, and then approached people he thought might be in possession of them.
After obtaining a card, Kim would go to cooperating local markets, where he would use the card in an unauthorized manner. Typically, he would present the card to the grocer, who would swipe it through a food-stamp scanner, routinely noting a transaction of approximately $200. Kim would then receive cash, groceries, or store credit in that amount. Afterwards, he would return the card to its rightful owner, providing that person with cash in the amount of approximately half of the transaction total. The loss to the SNAP program because of Kim’s action was approximately $29,816.
Following the sentencing, Assistant Special Agent-in-Charge Robert Wagner of the U.S. Department of Agriculture’s Office of Inspector General, said, “SNAP is the largest program in the domestic hunger safety net, and those who prey on the poor by illegally purchasing SNAP benefits erode the public trust in the program.”
Wagner expressed appreciation to the Ramsey County Sheriff’s Office, the St. Paul Police Department, and U.S. Attorney’s Office for effectively working together to prosecute those whose criminal conduct diverts vital federal nutrition assistance away from needy individuals and families.
Each individual who receives SNAP benefits is issued an electronic benefit transfer (“EBT”) card, which contains a monthly allocated benefit amount that can be used at authorized retailers. The U.S. Department of Agriculture (“USDA”) reimburses those retailers for the benefit amounts redeemed. Only eligible food items may be acquired with food stamps, and some items, such as alcoholic beverages, tobacco products, and cell phone minutes are not eligible. Moreover, food stamps may not be redeemed for cash.
This case was the result of an investigation by the USDA-Office of Inspector General, the Ramsey County Sheriff’s Office, and the St. Paul Police Department. It was prosecuted by Assistant U.S. Attorney David P. Steinkamp.Sex Offender Sentenced in Failure to Register CaseRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Chad S. Williams, 42, of Rochester, N.Y., who was convicted of failing to register as a sex offender, was sentenced to 33 months in prison and six years of supervised release by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that Williams, a sex offender, last updated his sex offender registration in 2009. In July 2009, the defendant left the State of New York to live in the State of Georgia. Between July 2009 and March 2011, Williams failed to register in Georgia and failed to update his registration status in New York.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of the United States Marshals Service, under the direction of United States Marshal Charles Salina.Sentences for September 03 – 05, 2013Read the Press Release
Martin Travis Brown, 44, of Fort Collins, Colorado, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 5, 2013, on one count of conspiracy to possess with intent to distribute, and to distributing between 1.5 kilograms and 5 kilograms of a mixture or substance containing a detectable amount of methamphetamine and two counts of possession with intent to distribute methamphetamine and aiding and abetting. Brown was arrested in Casper, Wyoming. He received 151 months imprisonment, to be followed by five years of supervised, and was ordered to pay a $300.00 special assessment and a $700.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Robert Glenn Davis, 38, of Gillette, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on September 4, 2013, on one count of conspiracy to possess with intent to distribute, and to distribute and one count of distribution of at least 1.5 kilograms of a mixture or substance containing a detectable amount of methamphetamine. Davis was arrested in Rock Springs, Wyoming. He received 135 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $200.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Fern Baker, 71, of Newcastle, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on September 3, 2013, for conspiracy to possess with intent to distribute, and to distributing methadone. Baker was arrested in Newcastle, Wyoming. She received five years probation and was ordered to pay a $100.00 special assessment and restitution in the amount of $10,612.85. This case was investigated by the Wyoming Division of Criminal Investigation.
Cathy Lines, 55, of Newcastle, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on September 3, 2013, for conspiracy to possess with intent to distribute, and to distributing methadone. Lines was arrested in Newcastle, Wyoming. She received 96 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $10,612.85. This case was investigated by the Wyoming Division of Criminal Investigation.
San Jose Man Sentenced to 21 Months for Destroying EvidenceRead the Press Release
SAN JOSE – Randy Daniel Shattuck was sentenced on September 5, 2013 to 21 months in prison for destroying evidence, United States Attorney Melinda Haag announced.
Shattuck pleaded guilty on January 10, 2013. According to the plea agreement, Shattuck admitted that after he had learned of the existence of a criminal investigation into his internet activities, he intentionally destroyed certain files that were stored on his external hard drive, just minutes before the arrival of federal agents to his residence.
Shattuck, 29, of San Jose, was indicted by a federal grand jury on September 26, 2012, and charged with a single count of the destruction of evidence.
“The severity of this sentence should send a strong message of deterrence to anyone considering destroying evidence. This Office will investigate and prosecute persons that obstruct investigations by our partners in federal law enforcement,” said United States Attorney Melinda Haag.
The sentence was handed down by The Honorable D. Lowell Jensen, U.S. Senior District Court Judge, following a guilty plea on the single count of the indictment, violation of 18 U.S.C. 1519. Judge Jensen also imposed a fine of $3,000 and sentenced the defendant to three years of supervised release. The defendant will begin serving the sentence on November 5, 2013.
Timothy J. Lucey is the Assistant United States Attorney who is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the Homeland Security Investigations, Department of Homeland Security.
San Francisco Resident Pleads Guilty to Filing A False Tax ReturnRead the Press Release
SAN FRANCISCO – Richard Chong pleaded guilty today to a charge involving the failure to disclose the existence of foreign bank accounts on his tax returns, United States Attorney Melinda Haag and Internal Revenue Service Criminal Investigation (IRS-CI) Special Agent in Charge José M. Martínez announced.
According to the plea agreement, Richard Chong, of San Francisco, filed U.S. Individual Income Tax Returns in 2005, 2006, and 2007 in which he falsely stated on Schedule B that he had “no” foreign bank accounts. Chong, in fact, had multiple foreign bank accounts, including an account at LGT Bank in the Principality of Liechtenstein. Chong admitted that he did not disclose these accounts to the person preparing his income tax returns although he knew he was required to disclose them to the IRS.
In pleading guilty, Chong agreed to resolve all civil liability for failing to file Reports of Foreign Bank and Financial Accounts, Form TD F 90-22.1, and other foreign information reporting obligations under the United States law, for the tax years 1999 through 2007. He will also pay a 50% penalty with respect to the funds held in the undeclared offshore accounts for the one year with the highest balance in the account for the calendar years 1999 through 2007. He agreed to pay this penalty prior to sentencing.
Chong, who was charged on July 8, 2013, with one count of filing a false tax return in violation of 26 U.S.C. 7206(1), is scheduled to be sentenced on December 13, 2013.
The maximum statutory penalty for each count of filing a false tax return, in violation of Title 26, U.S.C § 7206(1) is three years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Thomas Newman is the Assistant U.S. Attorney who is prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Rehoboth, N.M., Man Pleads Guilty to Methamphetamine Trafficking and Unlawful Possession of a FirearmRead the Press Release
ALBUQUERQUE – MacDavis Bahe, 31, an enrolled member of the Navajo Nation who resides in Rehoboth, N.M., pleaded guilty this morning to a methamphetamine trafficking charge and unlawful possession of a firearm. Under the terms of his plea agreement, Bahe will be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court.
Bahe was indicted in June 2012, and charged with distributing methamphetamine and marijuana in McKinley County, N.M., between Feb. 2012 and May 2012. He also was charged with being a felon in possession of a firearm and possession of an unregistered firearm.
During today’s plea hearing, Bahe admitted that he distributed methamphetamine on Feb. 17, 2012, to an individual who, unbeknownst to him, was an undercover officer. Bahe also admitted that he unlawfully possessed a shotgun on May 1, 2012. Bahe acknowledged that he was prohibited from possessing firearms and ammunition because he previously had been convicted of the following felony offenses in the 11th Judicial District Court for the State of New Mexico (McKinley County): burglary, aggravated fleeing from a law enforcement officer, and being a felon in possession of a firearm or destructive device.
Bahe was arrested on June 4, 2012, and has been in federal custody since that time. Bahe will remain detained pending his sentencing hearing, which has yet to be scheduled. The remaining counts of the indictment will be dismissed after Bahe has been sentenced.
The case was investigated by the Albuquerque office of the FBI and the Middle Rio Grande Valley Narcotics Task Force, and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Red Lake Man Sentenced for Endangering Baby’s HealthRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 33-year-old Red Lake man was sentenced for endangering the health of a baby. United States District Judge Donovan W. Frank sentenced Chad Joseph Sumner to 40 months in prison on one count of child endangerment. Sumner was indicted on January 8, 2013, and pleaded guilty on April 12, 2013.
In his plea agreement, Sumner admitted that on August 17, 2011, while acting as the caretaker for the baby when the mother was temporarily away, the child was injured. As a result of Sumner’s failure to properly care for the child, the infant suffered substantial physical harm, including head trauma and skull fractures.
This case was the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney's Office.Rapid City Man Sentenced for Making False StatementsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of False Statement was sentenced on September 3, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Ray Douglas Red Leaf, age 40, was sentenced to 2 years’ probation, and was ordered to pay $19,470 in restitution to the Social Security Administration and $100 to the Federal Crime Victims’ Fund.
Between March 2009 and October 2011, Red Leaf knowingly made false statements in a Social Security Representative Payee Report, claiming another person resided with him in order to receive that person’s Supplemental Security Income benefits. He pled guilty on April 18, 2013.
This case was investigated by the Office of Inspector General-Social Security Administration. Assistant U.S. Attorney Eric Kelderman prosecuted the case.Prosecutions Continue in Illegal Entry Cases Involving Those with Prior Criminal RecordsRead the Press Release
MINNEAPOLIS -- In the District of Minnesota, court action continued this week in three separate cases that involve foreign nationals who entered the United States illegally after being deported subsequent to criminal convictions. In each case, the individual was charged with one count of illegal re-entry after removal.
In the first case, Hector Rios-Guzman, age 27, pleaded guilty yesterday in federal court. He was indicted on July 16, 2013, and entered his plea before U.S. District Judge John R. Tunheim. In his plea agreement, Rios-Guzman, also known as Hector Rios, admitted that on May 15, 2013, authorities found him in the U.S. illegally after he had been previously deported to Mexico. His deportation followed a 2004 Hennepin County conviction for terroristic threats. On May 15, 2013, Rios-Guzman was arrested following a traffic stop in Bloomington. According to a law enforcement affidavit filed in the case, Rios-Guzman fled the scene on foot before he was arrested. Rios-Guzman also has a previous federal court conviction in the District of Minnesota for illegal re-entry.For his crime, Rios-Guzman faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Judge Tunheim will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (“ICE ERO”). It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.
In the second case, Alfredo Rios-Guzman, age 35, also pleaded guilty yesterday in federal court. He was indicted on June 18, 2013, and entered his plea before U.S. District Judge Donovan W. Frank in St. Paul. In his plea agreement, Rios-Guzman admitted that on May 7, 2013, authorities found him in the U.S. illegally after he had been previously deported to Mexico. His deportation followed a 2007 Hennepin County conviction for assault in the second degree involving a dangerous weapon. Rios-Guzman was identified as an alien with a criminal record and was arrested on May 17, 2013, after a traffic stop near his Bloomington residence.
For his crime, Rios-Guzman faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Judge Frank will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by ICE ERO. It is being prosecuted by Assistant U.S. Attorney Sarah E. Hudleston.
In the third case, U.S. District Court Chief Judge Michael J. Davis, on September 3, 2013, sentenced Noe Castro-Coj, age 41, to 30 months in federal prison, followed by deportation. Castro-Coj was indicted on March 11, 2013, and pleaded guilty on May 7, 2013. In his plea agreement, Castro-Coj admitted that on February 5, 2013, he was found in the U.S. after having been deported to Guatemala in 2003, after a 2000 Kansas conviction for kidnapping. On February 5, 2013, Castro-Coj was arrested in Steele County for violating an order for protection. On February 7, 2013, ICE was notified that he was in jail.
This case was the result of an investigation by the Steele County Sheriff’s Office and ICE ERO. It was prosecuted by Assistant U.S. Attorney Andrew Dunne.Pleasanton Woman Pleads Guilty to Filing False Claim with the IRSRead the Press Release
OAKLAND – Denise LaShawn Reed, also known as Brooke Nicholson, Lauren Roberts, Denise Berry, Savana Jones, and Neyce Roberts, pleaded guilty to a charge related to a false tax refund scheme, United States Attorney Melinda Haag and Internal Revenue Service-Criminal Investigation Special Agent in Charge José M. Martinez announced.
According to the plea agreement, from January 2009 through February 2010, Reed, 45, of Pleasanton, California, filed 14 false and fraudulent federal income tax returns with the IRS. These claims were all filed as Forms 1040, U.S. Individual Income Tax Returns. The total amount of the false claims was $94,700. Reed knowingly prepared and electronically filed the returns with the IRS. The claims listed on the returns were all fictitious, with the exception of the individual’s identities. As part of the scheme, some of the returns reported that the taxpayer earned income as part of a business that they operated when Reed knew the taxpayer did not own or operate a business. The fourteen false tax returns fraudulently reported that a refund was due. Reed admitted to receiving the tax refunds for 13 of the false claims.
Reed was charged on December 18, 2012, with 14 counts of filing false claims. She pleaded guilty to one count.
The maximum penalty for filing a false claim, in violation of Title 18, United States 287, is five years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
In response to these types of cases, the Justice Department’s Tax Division issued a new directive to further the efforts of the Tax Division and help U.S. Attorneys’ Offices respond quickly and effectively to the challenges in stolen identity refund fraud (SIRF) cases. To further this goal, Tax Division Directive 144, which took effect on Oct. 1, 2012, was issued to streamline the process for prosecuting these offenses.
Cynthia Stier is the Assistant United States Attorney who is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
(Reed Indictment )
Plano, Texas, Man Sentenced to 63 Months in Federal Prison in Corporate Hacking CaseRead the Press Release
DALLAS — Michael Musacchio, 62, of Plano, Texas, was sentenced late yesterday by U.S. District Judge Jorge A. Solis to serve a total of 63 months in federal prison, following his conviction at trial in March 2013 for conspiring to hack into his former employer’s computer network. The issue of restitution is still under consideration by the court. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Musacchio was convicted on one felony count of conspiracy to make unauthorized access to a protected computer (hacking) and two substantive felony counts of hacking. He will remain on bond until he is required to surrender to the Bureau of Prisons on a date to be determined.
According to the evidence submitted at trial, from 2000 to September 2004, Musacchio was the president of Exel Transportation Services, a third party logistics or intermodal transportation company that facilitated links between shippers and common carriers in the manufacturing, retail and consumer industries. In 2004, Musacchio left Exel to form a competing company, Total Transportation Services, where he was the original president and CEO. Two other former Exel employees from the Exel IT Department, Joseph Roy Brown and John Michael Kelly, also went to work at Musacchio’s new company. Trial testimony and exhibits established that between 2004 and 2006, Musacchio and Brown, assisted by Kelly engaged in a scheme to hack into Exel’s computer system for the purpose of conducting corporate espionage. Through their repeated unauthorized accesses into Exel’s email accounts, co-conspirators Musacchio and Brown were able to obtain Exel’s confidential and proprietary business information and use it to benefit their new employer and themselves as investors.
A federal grand jury returned an indictment against the three men on Nov. 2, 2010. Brown and Kelly entered guilty pleas on May 19, 2011, and Aug. 2, 2012, respectively, and are scheduled to be sentenced on September 25, 2013.
This was the first investigation of hacking for the purpose of corporate espionage that was conducted by the Justice Department’s Computer Crime and Intellectual Property (CCIP) Section, the U.S. Attorney’s Office for the Northern District of Texas and the FBI.
The FBI Dallas Field Office was in charge of the investigation. Deputy Criminal Chief Assistant U.S. Attorney Linda Groves and Assistant U.S. Attorney Candina Heath, of the U.S. Attorney’s Office in the Northern District of Texas, and Trial Attorney Rick Green, of the Criminal Division’s CCIP Section, prosecuted.
Owner of Bluegrass Women’s Healthcare in Elizabethtown Guilty of Misbranding and Bluegrass Women’s Healthcare Guilty of SmugglingRead the Press Release
– Agreed to pay restitution in the amount of $50,663.31
LOUISVILLE, Ky. – The owner of Bluegrass Women’s Healthcare, located in Elizabethtown, Kentucky pleaded guilty today, in United States District Court, before U.S. Magistrate Judge James Moyer, to a single charge of misbranding, the corporation pleaded guilty to smuggling, and agreed to pay restitution in the amount of $50,663.31 to victims, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Canh Jeff Vo, age 45, of Louisville, Kentucky was the owner, supervising physician, and president at Bluegrass Women’s Healthcare between March 2008 and September 2009 when the violations occurred. Vo offered gynecological and obstetric services to women at Bluegrass Women’s Healthcare, including providing forms of birth control. According to the plea agreement, between March 2008 and September 2009, Vo, purchased and inserted into patients, foreign, non-FDA approved (levonorgesteral-releasing intrauterine device). These intrauterine devices or IUDs, were misbranded in that their labeling was not in the English language; and their labeling did not bear adequate directions for use. Vo pleaded guilty to the misdemeanor charge of misbranding and agreed to pay jointly and severally with Bluegrass Women’s Healthcare, restitution to victims in the amount of $50,663.31.
Also, between March 2008 and September 2009, Bluegrass Women’s Healthcare received, brought, and imported into the United States, IUDs, knowing that these were misbranded and unlawfully introduced into interstate commerce from various countries, including from Canada. Defendant VO, as president of Bluegrass Women’s Healthcare pleaded guilty, on behalf of the corporation, to the felony charge of smuggling and agreed to pay a $25,000 fine.
If convicted at trial, Vo faced a maximum of 1 year in prison, a maximum fine of $1,000 and up to 1 year of supervised release. The corporation faced a maximum fine of $500,000 and up to three years of supervised release.
Vo is scheduled for sentencing before U.S. District Judge John G. Heyburn II, on December 17, 2013, at 1:30 pm, in Louisville. At the time of sentencing, the United States has agreed to drop charges in the superseding indictment.
This case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb, and is being investigated by the United States Food and Drug Administration (FDA) Office of Criminal Investigations, the Federal Bureau of Investigation (FBI), and Kentucky Office of the Attorney General Office of Medicaid Fraud and Abuse Control.
New York City Police Officer and Customs and Border Protection Officer Arrested for International Arms Trafficking; Brother in Philippines Also ChargedRead the Press Release
Federal agents have arrested REX MARALIT, a New York City Police Officer assigned to police headquarters in Manhattan, and his brother WILFREDO MARALIT, a Customs and Border Protection Officer assigned to Los Angeles International Airport, pursuant to arrest warrants issued in the Eastern District of New York. These two men, along with a third brother, ARIEL MARALIT, are charged with conspiring to violate the Arms Export Control Act by exporting high-powered weapons from the United States to the Philippines without a license from the U.S. State Department, and with conspiring to engage in unlicensed firearms dealing.1 REX MARALIT will make his initial appearance at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York at 11:00 a.m. in courtroom 2A. WILFREDO MARALIT will appear at the United States Courthouse, 411 West Fourth Street, Santa Ana, California at 2:00 p.m. in Room 1053, and is expected to be removed to the Eastern District of New York to face the charges. The government is coordinating with foreign authorities regarding the apprehension of ARIEL MARALIT.
The arrests were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement’s (ICE), Homeland Security Investigations (HSI), New York; Craig W. Rupert, Special Agent-in-Charge of the Defense Criminal Investigative Service (DCIS); Joseph Anarumo, Jr., Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division; and Raymond W. Kelly, Commissioner, New York City Police Department (NYPD).
According to the complaint, between January 2009 and March 2013, the defendants engaged in a scheme to smuggle high-powered assault rifles, sniper rifles, pistols and firearm accessories from the United States to the Philippines, where they were sold to overseas customers. ARIEL MARALIT, who resides in the Philippines, identified customers and sought the assistance of his brothers, both American law enforcement officers, to purchase and ship the weapons for resale overseas. In response to customer orders from the Philippines, the defendants located weapons advertised on firearms-brokering websites and made arrangements to purchase the guns through dealers in the United States. They then disassembled the weapons and smuggled them out of the United States in disguised shipments.
According to the complaint, none of the defendants obtained export licenses or federal firearms licenses in connection with the weapons they sold. Instead, they used their knowledge of firearms and their status as law enforcement officers to engage in an illegal international arms trafficking business. On several occasions, the defendants used their law enforcement credentials to obtain discounts on weapons from U.S.-based gun dealers. For example, in an email dated June 21, 2012, REX MARALIT asked a U.S.-based gun dealer whether the dealer had a Special Operations Combat Assault Rifle (“SCAR”) in stock. Upon learning that the dealer had such a weapon available, REX MARALIT requested that the dealer hold the high-powered assault rifle until the following Monday, adding, “One other question do you give discounts to LEO, I am an active PO with the NYPD, please advise.” “LEO” is a common abbreviation for “Law Enforcement Officer,” and “PO” refers to “Police Officer.”
The powerful and dangerous firearms that the defendants illegally exported and sold include the Barrett M82A1 .50 caliber semi-automatic rifle, the SCAR, and the FN Herstal 5.7mm semi-automatic pistol. For example, the Barrett M82A1 .50 caliber semi-automatic rifle is a long-range, weapon capable of penetrating body armor, exterior walls of buildings, and even aircraft. The Barrett rifle is favored by specialized military forces due to its extraordinary power and range. The SCAR is a military rifle designed in 2004 at the request of the United States Special Operations Command for a new family of assault rifles to be used by U.S. Special Forces. The FN Herstal 5.7mm semi-automatic pistol is a high-capacity, battlefield weapon capable of firing a projectile that can penetrate body armor.
The Arms Export Control Act requires exporters of firearms to first obtain the approval of the United States State Department before shipping weapons overseas. The United States Munitions List requires export licenses for firearms such as the military-style assault rifles, sniper rifles, and semi-automatic handguns allegedly exported by the defendants. Similarly, dealing in firearms is regulated by the ATF, which requires gun dealers to first obtain a federal firearms license before engaging in such a business.
“As alleged, rather than upholding and enforcing the law as they had sworn to do, these defendants made international gunrunning a family business. The brothers used their knowledge of the law to circumvent it, and sent dangerous weapons overseas without regard for the ultimate destination or targets,” stated U.S. Attorney Lynch. “Criminal conduct by police officers, federal agents, and their confederates cannot be tolerated and will be met with the full force of the law.” Ms. Lynch expressed her grateful appreciation to HSI, DCIS, ATF and the NYPD’s Internal Affairs Bureau, which worked closely together to investigate the case, and to the U.S. Attorney’s Office for the Central District of California, and the U.S. Attorney’s Office for the District of New Jersey for their assistance.
“The defendants are alleged to have illegally exported some of the world’s most powerful firearms with complete disregard as to who the end user would be,” said James T. Hayes Jr., Special Agent-in-Charge of HSI New York. “HSI and our law enforcement partners both locally and around the globe are committed to upholding the exportation laws of the United States to ensure that these deadly weapons do not end up in the wrong hands.”
Special Agent-in-Charge Rupert stated, “As alleged, the trafficking in weapons from the U.S. to foreign entities in violation of U.S. law is a wholly unacceptable crime, but when committed by trusted civil servants charged with public safety, the crime is even more deplorable. DCIS, the law enforcement arm of the Office of the Inspector General, Department of Defense, is dedicated to preventing the exportation of controlled U.S. military technology and to exposing U.S. public servants who violate their oath and the public trust. The DCIS New York Resident Agency and our partner agencies are commended for their continuing dedication to this pursuit.”
Special Agent-in-Charge Anarumo stated, “The alleged criminal acts carried out by these defendants, including two law enforcement officers, are reprehensible and inexcusable. We must not allow the public trust and confidence in those sworn to protect and serve our communities to be compromised. By allegedly misusing their positions as sworn officers of the law in an ill-conceived scheme to illegally acquire and traffic firearms, now, the sad irony is that the laws once enforced by these defendants will be the very same laws used to prosecute them.”
“The vast majority of police officers do outstanding work to protect New York City and a case like this is disheartening to the entire department,” Commissioner Kelly said. “The experienced personnel assigned to our Internal Affairs Bureau engaged in an in-depth investigation and worked closely with all of the outside agencies involved.”
At sentencing, the defendants face up to 5 years in prison on each charge, forfeiture, and a fine of up to $250,000.
The government’s case is being prosecuted by Assistant United States Attorneys Seth DuCharme and Sam Nitze, with assistance from Trial Attorney David Recker of the Department of Justice Counterespionage Section.
The Defendants:
ARIEL MARALIT
The Philippines
Age: 43REX G. MARALIT
Lawrenceville, New Jersey
Age: 44WILFREDO MARALIT
Garden Grove, California
Age: 48_____________________________
1 The charges contained in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Maralit Charging Documents and Exhibits: Maralit.Complaint & Affidavit.pdf
Maralit.Detention letter.pdf
Maralit.Exhibits to Detention Letter.pdfNew Iberia Resident Sentenced for FEMA Theft SchemeRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Valerie Benjamin, 49, of New Iberia, La., was sentenced by U.S. District Court Judge Richard T. Haik to 18 months in prison and three years of supervised release for conspiring to defraud the Federal Emergency Management Agency (FEMA) out of more than $24,000 dollars in false hurricane damage claims. She was ordered to pay $24,960 in restitution to FEMA for the losses incurred under the scheme. Valerie Benjamin pleaded guilty April 16, 2013.
According to the evidence presented at the guilty plea, Valerie Benjamin conspired with Jacqueline Benjamin and Pamela Alexander, also of New Iberia, to steal money from FEMA. Following hurricanes Katrina and Rita in 2005 and Gustav and Ike in 2008, Valerie Benjamin submitted applications to FEMA seeking disaster assistance and emergency housing assistance, claiming she was required to evacuate her residence because of storm damage. The investigation revealed that she never moved from her home, and it only sustained minor storm damage. To facilitate the scheme Valerie Benjamin provided personal information such as her address, Social Security Number, date of birth and phone number to Pamela Alexander and Jacqueline Benjamin who filed fictitious landlord statements, rental agreements, rent receipts and other documents to make it appear that Valerie Benjamin legitimately qualified for the assistance.
Pamela Alexander pleaded guilty December 18, 2012 and on May 13, 2013 was sentenced to serve 10 months in prison and three years of supervised release. Alexander was also ordered to pay $15,280 in restitution. Jacqueline Benjamin pleaded guilty March 14, 2013 and was sentenced June 12, 2013 to serve three years of probation. She was also ordered to pay restitution.
“The defendants in this case took advantage of a program designed to help those in need and provide money to victims of natural disasters,” Finley stated. “Their actions put an unnecessary financial burden on an agency tasked with the huge responsibility of responding to the aftermath of hurricanes. This office and our judicial partners will continue to prosecute these types of cases to make sure that the money is not diverted to frauds like these defendants.”
The Federal Emergency Management Agency conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
Nashville Musician Sentenced to 210 Months in Federal Prison for Trying to Molest Seven-Year-Old GirlRead the Press Release
Banjo Player Arrested While in Dallas to Perform With County Band
DALLAS — Abraham Eugene Spear, 31, of Nashville, Tennessee, was sentenced this morning by Chief U.S. District Judge Sidney A. Fitzwater to 210 months in federal prison, following his guilty plea in February 2013 to one count of attempted enticement of a minor. He has been in custody since his arrest on September 21, 2012, in Dallas, on a related federal criminal complaint. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, approximately one month before he was to be in Dallas to perform at a local country music establishment, Spear sent a chat request to an undercover officer who was posing online as a “mom of curious girls.” He requested the “mom” send him photos of the girls and later asked the “mom,” if she “still need[s] a teacher when I’m down there?”
Spear admitted that over the course of the next few weeks he communicated, via the internet and cell phone, with the undercover officer, who he thought was a mother of two girls, ages seven and nine. During these communications, many of which were sexual in nature, he persuaded the “mother” to allow him to meet her two girls to engage in different sexual acts with him. On September 20, 2012, Spear traveled from Tennessee to Dallas to perform with a band at a local bar and he agreed to meet the “mom” at a restaurant in Dallas. After he was positively identified, Spear was arrested by FBI agents.
Spear also acknowledged that he had engaged in sexually explicit communications with other mothers of minor girls, including one where he offered to pay $200 to engage in sexual acts with one mother’s minor daughter.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
Multiple Defendants Indicted on Drug Trafficking ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark R. Trouville, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (ICE-HSI), announce the indictment of several individuals for their alleged participation in a drug trafficking conspiracy. The defendants were arrested on September 4, 2013 and made their initial appearances yesterday in federal court.
Charged in the eight-count Indictment are the following individuals:
Jose Alberto Ontivero Monte de Oca, aka “Pariente,” aka “El Viejo,” aka “Papito,” 54, of Hialeah, Florida; Pedro Farach, 45, of Hialeah, Florida; Jaime Maldonado Ramos, aka “Oggie,” 46, of Homestead, Florida; Jose Alfredo Villarreal, aka “Alfredito,” 40, of Naples, Florida; Roberto Perez, aka “Rodo,” 46, of Pembroke Pines, Florida; Juan Enrique Martinez, 50, of Miami, Florida; Alberto Arregoitia Lorenzo, aka “Lorenzo Arregoitia,” 61, of Miami, Florida; Miguel Angel Desdin, aka “Miguelon,” 59, of Hialeah, Florida; Vladimir Mir-Medina, aka “Vladimir Medina,” aka “Vladimir Mir,” 50, of Miami, Florida; Miguel Cruz, 49, of Hialeah, Florida; Manuel Bautista Alvarez, 53, of Miami, Florida; Hernan Rodriguez Alfaro, aka “Iran,” 40, of Cutler Bay, Florida; and
Rafael Luis Ramos Lopez, aka “Lou,” 46, of Miami, Florida.The indictment, filed on August 23, 2013, and unsealed yesterday, charges the defendants with conspiracy to possess with intent to distribute over five kilograms of cocaine and distribution and/or possession with intent to distribute cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 846. If convicted, the defendants each face a mandatory minimum sentence of 10 years in prison and a possible statutory maximum sentence of life. Jaime Maldonado Ramos, who is also charged with firearms offenses in violation of Title 18, United States Code, Sections 922(g)(1) and 924(c), faces an additional mandatory minimum sentence of five years in prison and a possible statutory maximum sentence of life.
This case is a result of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Mr. Ferrer commended the investigative efforts of the DEA, ATF and ICE-HSI. Mr. Ferrer also commended the U.S. Marshals Service, the Miami-Dade Police Department, the Coral Gables Police Department, the Hialeah Police Department, the Homestead Police Department and the West Miami Police Department for their assistance in this investigation. The case is being prosecuted by Assistant U.S. Attorney Elisa Castrolugo.
An indictment is only an accusation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
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.
Memphis Man Sentenced to 33 Months in Prison for Tax FraudRead the Press Release
Memphis, TN – Terry Green, 60, of Memphis, TN, was sentenced yesterday by U.S. District Judge John T. Fowlkes to 33 months in prison for tax fraud, announced U.S. Attorney Edward L. Stanton III.
According to facts revealed in the indictment and during the sentencing hearing, from 2005 to 2009, Green and his associate, Herman Shaw, ran several tax preparation businesses in Memphis (Computax and Shaw's Tax Express). Through these businesses, Green and Shaw routinely filed false federal income tax returns for their clients and generated fees for their tax businesses as a result. The returns falsely reflected losses and expenses arising from fictitious home-based businesses, such as cutting hair and landscaping. This would inflate the refund amount for the defendants' clients.
As a result of the scheme, numerous false returns were approved by the IRS, resulting in over $400,000 of loss to the United States Government. In June, Shaw, 33, of Cordova, TN, was sentenced to 26 months in prison. Both defendants were ordered to pay restitution in the amount of $404,078.
This case was investigated by IRS-CID and was prosecuted by Assistant United States Attorney Stephen Hall on behalf of the government.Martinsburg Residents Convicted of Heroin DistributionRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
MARTINSBURG, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II announced that two Martinsburg residents were convicted for selling heroin.
BENJAMIN CHAVIS, II, age 54, and CHARLOTTE JENKINS SMITH, age 39 of Martinsburg entered pleas of guilty to “Distribution of Heroin” in the Berkeley County area. CHAVIS and SMITH, who are currently free on bond pending sentencing, face up to 20 years imprisonment.
These cases were prosecuted by Assistant United States Attorneys Jarod J. Douglas and Robert H. McWilliams, Jr. and were investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
In a separate case, Ihlenfeld stated that NIKKI RENE ELLISON, age 25, of Martinsburg, entered a plea of guilty to “False Representation in Application for a United States Passport.” ELLISON, who is free on bond pending sentencing, faces up to 10 years imprisonment.
This case was prosecuted by Assistant United States Attorney Jarod J. Douglas and investigated by the United States Department of State, Diplomatic Services.
Marlboro Man Convicted of Defrauding AirlinesRead the Press Release
BOSTON – A Marlboro man pleaded guilty today to charges stemming from his scheme to defraud various airlines.
Pedro Igor Duarte, 28 pleaded guilty to three counts of mail fraud.
Beginning October 2007 and continuing through April 2009, Duarte purchased airline tickets and flew on various airlines, including Continental Airlines, American Airlines, and Air Tran Airways (now Southwest Airlines), for the purpose of submitting, and obtaining payment on, lost baggage claims, when in fact he had not lost any baggage on those flights.
Duarte would purchase an airline ticket and prior to the flight would check his baggage with the airline. Upon arrival at his destination airport, Duarte would pick up his checked baggage, but then would submit a lost baggage claim form to the airline, falsely stating that the airline had lost his baggage. Duarte would alter slightly the spelling of his name on the baggage claim form so that the airline would not know that the same person was filing numerous lost baggage claims within a short time period. Duarte would also provide a Massachusetts address or, alternatively, provide an address outside of Massachusetts, but would later contact the airline and change his address to a Massachusetts location. In support of his lost baggage claim, Duarte would provide the airline with purchase receipts purporting to document the value of his lost baggage. Upon receipt of the necessary information from Duarte, the airline would mail him a check to compensate for the value of his purportedly lost baggage.
Duarte faces a maximum term of 20 years in prison, three years of supervised release, and a $250,000 fine. As part of the plea agreement, Duarte will repay the airlines $28,210 in restitution. Sentencing is scheduled for December 6, 2013.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Anthony DiPaolo, Chief of the Investigations of the Massachusetts Insurance Fraud Bureau, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Maxim Grinberg of Ortiz’s Major Crimes Unit.
Man Sentenced to 50 Years in Prison for Production of Child PornographyRead the Press Release
SAN JUAN, P.R. - Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico, announced today that United States District Judge Carmen C. Cerezo sentenced 42 year old Luis Alberto Morales-Badillo to serve a term of imprisonment of 50 years imprisonment followed 15 years of supervised release, to be served consecutively to the 15 year imprisonment term imposed for additional sexual aggression charges against minors. On November 16, 2012, Morales-Badillo pled guilty to five counts of production of child pornography and one count of possession of child pornography, following an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
In May, 2012, the defendant was charged for production and possession of child pornography. The evidence in this case revealed that during an eleven year period, from 1999 to 2010, the defendant sexually abused and/or engaged in illicit sexually explicit conduct with five different female minors and documented his sexual abuse by making visual depictions of such conduct from 2003-2010. From 1999-2004 he abused a female minor while she was 8-12 years old; from 2005-2008 he sexually abused two female minor siblings while they were 4-8 and 9-12 years old respectively; from 2007-2008 he exploited a female minor while she was 12-13 years old; and in 2010 he took advantage and exploited an 8 year old female minor. Such evidence was discovered during a search warrant execution by Homeland Security Investigations Agents wherein a digital camera and a laptop computer was seized in August, 2011.
The defendant has also been convicted at the state level for sexually abusing two additional female minor victims during the time period of 1995-1999.
The defendant exhibited a pattern of sexual abuse against innocent female minors until he was arrested in 2011. Luis Morales Badillo caused substantial lifetime harm to his victims.
“Justice was done today. This sentence should serve to reassure the public that we are paying close attention to the well-being of our children, and that we will spare no expense to take child predators off the streets,” said US Attorney Rosa Emilia Rodríguez-Vélez. “All child sexual predators will be held accountable for the unspeakable crimes they commit and the harm they cause to their victims and their families.”
Project Safe Childhood is an initiative of the Department of Justice aimed at preventing the abuse and exploitation of children by the use of digital cameras, computers and other digital and electronic media.
The criminal prosecution was handled by Assistant U.S. Attorney Jenifer Y. Hernàndez and investigated by ICE agents.
Man Claiming to Be Son of the President of the Congo Pleads Guilty to Defrauding Victims Out of $1.6 MillionRead the Press Release
SAN FRANCISCO – Blessed Marvelous Herve pleaded guilty in federal court in San Francisco today to wire fraud, United States Attorney Melinda Haag announced.
In pleading guilty, Herve admitted that from 2006 through 2012, he devised and executed a scheme to defraud victims out of approximately $1.6 million through a series of false and fraudulent statements, representations, and promises. Herve admitted that he falsely represented to victims that his father was the President of the Congo and a multi-billionaire.
Herve falsely represented that the United States government had recently seized more than $43 million of his money, and as part of his scheme, he sought the victim’s financial assistance in order to prevail in a federal court case to gain access to the funds. Herve admitted to signing four promissory notes in which he promised to pay one victim bonus sums of $500,000 and $1 million in exchange for the victim’s financial support of Herve’s purported quest to obtain the $43 million that the government had supposedly seized.
Herve also admitted that he falsely represented to victims that because of his federal court case, he was in federal prison from 2009 through 2012. During this time, Herve fraudulently solicited funds from a second victim. Herve promised this victim full repayment of her money plus a bonus of $1 million and a luxury car upon the completion of his federal case and the release of his seized funds. On or about October 2012, Herve solicited and received $47,000 from the second victim. He falsely claimed that he needed the funds to pay the Internal Revenue Service to satisfy the final judgment entered against him, and that this final payment of $47,000 would result in the release of his seized millions.
Herve, 41, of San Francisco, was charged by Criminal Complaint and arrested on April 24, 2013. He has been in custody since his arrest. He was indicted by a federal grand jury on May 7, 2013. Herve was charged with one count of wire fraud in violation of 18 U.S.C § 1343, to which he pleaded guilty under a plea agreement.
Herve’s sentencing hearing is scheduled for November 22, 2013, before The Honorable Jon S. Tigar, U.S. District Court Judge, in San Francisco. The maximum statutory penalty for wire fraud, in violation of 18 U.S.C § 1343, is 20 years in prison and a fine of $250,000. In his plea agreement, Herve agreed to pay restitution to the victims in the amount of approximately $1.7 million. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Hallie Hoffman is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elizabeth Garcia, Bridget Kilkenny, and Muffy Mallory. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the United States Department of Homeland Security.
Man Arrested in Traffic Stop in Carson County, with 100 Pounds of Methamphetamine Hidden in A Recreational Vehicle, Sentenced to 10 Years in Federal PrisonRead the Press Release
AMARILLO, Texas — A California man, who had 100 pounds of methamphetamine hidden in the recreational vehicle he was driving, was sentenced yesterday in federal court in Amarillo, Texas. Felix Lopez Vasquez, 61, of Perris, California, was sentenced by U.S. District Judge Mary Lou Robinson to 10 Years in Federal Prison. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement.
Vasquez was arrested by a Texas Department of Safety (DPS) Trooper on Interstate 40 in Carson County, Texas, on May 13, 2013. The Trooper had stopped the vehicle, driven and owned by Vasquez, after observing a traffic violation.
Because the Trooper noticed that Vasquez seemed unusually nervous, as well as noting other suspicious circumstances, he asked Vasquez for consent to search the vehicle. Vasquez consented and the Trooper located 45 bundles of methamphetamine, with a gross weight of 100 pounds, located in a storage area above the driver and passenger seats.
The investigation was conducted by the Drug Enforcement Administration and the DPS. Assistant U.S. Attorney Vicki Lamberson of the U.S. Attorney’s Office in Amarillo, and Assistant U.S. Attorney Jeffrey Haag of the U.S. Attorney’s Office in Lubbock, Texas, prosecuted.
Lower Brule Man Charged with Assaulting, Resisting and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury.
Cody Crazy Bull, age 22, was indicted on August 21, 2013, for Assaulting, Resisting and Impeding a Federal Officer. Crazy Bull appeared before U.S. Magistrate Judge Mark A. Moreno on September 4, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, an additional 2 years of supervised release upon revocation, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Crazy Bull is presumed innocent until and unless proven guilty.
The Indictment alleges that on July 20, 2013, Crazy Bull interfered with a federal law enforcement officer by using a deadly and dangerous weapon while the officer was engaged in the performance of his official duties.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Crazy Bull was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.Lower Brule Man Charged with Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury.
Colin Colombe, age 39, was indicted on August 21, 2013, for Assault with a Dangerous Weapon. Colombe appeared before U.S. Magistrate Judge Mark A. Moreno on September 4, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, an additional 2 years of supervised release upon revocation, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Colombe is presumed innocent until and unless proven guilty.
The Indictment alleges that on June 25, 2013, Colombe assaulted two individuals by hitting and kicking them with shod feet with intent to do bodily harm.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Colombe was released on bond pending trial which has not been set.Local Man Indicted for Possessing and Producing Child Pornography Involving A Minor Under Age TwoRead the Press Release
DALLAS — James Brian Rivers, 23, of Dallas, who remains in custody following his arrest earlier this summer on a federal complaint alleging that he used a prepubescent child to produce child pornography, has been indicted by a federal grand jury on one count of production of child pornography and one count of possession of prepubescent child pornography. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, on June 30, 2013, Rivers left his cellphone at a neighbor’s home. The neighbor looked through the cellphone and observed multiple images of child pornography and called 911. When officers with the Dallas Police Department arrived at the residence, they seized the cell phone obtained a search warrant for the phone. A forensic review of the phone revealed multiple images and one video depicting child pornography involving a prepubescent child.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the production count carries a maximum statutory penalty of not less than 15 years or more than 30 years in federal prison and the possession count carries a maximum statutory penalty of 20 years in federal prison. Each count of conviction also carries a maximum statutory fine of $250,000 and up to a lifetime of supervised release.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the FBI and the Dallas Police Department. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Legal Permanent Resident Admits to Attempting to Smuggle More Than $2 MillionRead the Press Release
LAREDO, Texas – Octavio Orizaba, 38, a legal permanent resident from Illinois, has entered a guilty plea to attempting to smuggle more than $2 million to Mexico, announced United States Attorney Kenneth Magidson. This was the largest unreported currency seizure that has been intercepted through Laredo thus far this year.
On June 30, 2013, Orizaba attempted to exit the United States from Laredo with his wife and two children. At that time, he provided a negative declaration as to whether he was transporting weapons, ammunition or currency over the sum of $10,000 into Mexico. However, further inspection resulted in the discovery of 144 plastic-wrapped, vacuum-sealed bundles, which were concealed in the sofa and futon he was hauling in the bed of his pick-up truck. Specifically, 47 bundles were discovered in the sofa, while 97 were found in the futon. The hidden currency totaled $2,147,985.
Today, he acknowledged he concealed the currency and failed to report it to authorities. He further admitted he was hired by someone in the Illinois area to take the money to Guanajuato, Mexico, and expected to be paid for doing so.
Individuals are permitted to carry any amount of currency or monetary instruments into or out of the U. S. However, if the quantity is more than $10,000, they are required to report it to Customs and Border Protection (CBP) officer. “Money” means monetary instruments and includes U.S. or foreign coins currently in circulation, currency, traveler’s checks in any form, money orders and negotiable instruments or investment securities in bearer form. Failure to declare may result in seizure of the currency and/or arrest.
U.S. District Judge Diana Saldana will sent sentencing at a later date, at which time Orizaba is facing up to five years in federal prison and a maximum $250,000 fine. The United States is also seeking forfeiture of the currency seized.
The case was investigated by CBP and Homeland Security Investigations and is being prosecutes by Assistant United States Attorney Suntrease Williams.
Laurel Drug Dealer Exiled to over 12 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Joevaughn Butler, age 33, of Laurel, Maryland, today to 152 months in prison followed by five years of supervised release for possession with intent to distribute cocaine, heroin and crack cocaine. Judge Bredar enhanced Butler’s sentence upon finding that he is a career offender/ armed career criminal based on three previous drug convictions. Judge Bredar also ordered that Butler forfeit $235,499 in cash and two 9 millimeter handguns recovered during a search of his residence.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Chief Cathy L. Lanier of the Metropolitan Police Department.
According to Butler’s plea agreement, Butler was arrested on September 23, 2011, shortly after leaving an apartment in the Laurel area of Anne Arundel County, Maryland. Butler was wanted on two outstanding arrest warrants issued by Washington, D.C. Superior Court. Butler was searched and law enforcement recovered: 52 ziplock baggies of heroin and a larger plastic bag containing additional heroin; 14 pink ziplock baggies of crack cocaine and a larger plastic bag containing additional crack cocaine; a key to the apartment from which he was observed leaving; and $150 cash.
Later that day, a search warrant was obtained for the apartment and law enforcement recovered: powder cocaine, crack cocaine, and heroin; two 9 millimeter handguns; and $229,679 in cash, all from a closet in the master bathroom. Recovered from the apartment’s living room was $5,670 in cash and an electronic money counter.
United States Attorney Rod J. Rosenstein commended the FBI, DEA and the Metropolitan Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Brooke Carey, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Las Vegas Lawyer Sentenced to over Seven Years in Prison for Mortgage Fraud CrimesRead the Press Release
LAS VEGAS, Nev. – Las Vegas lawyer Gerry Zobrist was sentenced today to 87 months in prison for his involvement in a mortgage fraud scheme that caused over $30 million in losses to lenders, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
“Mortgage fraud contributed to the decimation of real property values in Nevada,” said U.S. Attorney Bogden. “Since 2008, we have been working vigilantly with our law enforcement partners to investigate and prosecute these fraudsters. Hundreds of individuals have been convicted, including lawyers, real estate agents, real estate brokers, loan officers, loan processors, and others who participated in these schemes and most of them are now serving time in federal prison.”
Zobrist, 43, of Las Vegas, was sentenced by U.S. District Judge James C. Mahan. Judge Mahan also ordered Zobrist to pay approximately $31 million in restitution and to serve five years of supervised release. Zobrist pleaded guilty in January to one count of conspiracy to commit bank fraud and wire fraud. He was allowed to self-report to federal prison by Dec. 6, 2013.
According to the plea agreement, from about June 2006 to May 2008, Zobrist and unnamed coconspirators solicited and paid persons with good credit ratings to serve as straw buyers to purchase homes in the Las Vegas area on behalf of Zobrist and the coconspirators. Zobrist and the coconspirators made offers to purchase the homes, and the sellers agreed to disburse part of the sales proceeds to real estate companies, coconspirators and third party entities controlled by Zobrist and the coconspirators under the pretense that the proceeds constituted attorney’s fees, marketing fees, commissions, and other fees. Zobrist and the coconspirators caused to be completed and submitted mortgage loan applications and supporting documents in the name of the straw buyers, which contained false and fraudulent information concerning the straw buyers’ income, assets, liabilities, intended occupancy status, and other things. Zobrist and the coconspirators also caused to be submitted to the lenders documents containing false information about the source of the down payments, value of the homes, and intended disbursements to Zobrist, the coconspirators, and straw buyers. Using this fraudulent scheme, Zobrist and the coconspirators purchased 144 homes and obtained mortgage loans for more than $53 million. Zobrist and the coconspirators defaulted on the mortgage loans causing the homes to go into foreclosure, and caused the financial institutions to suffer losses of at least $30 million.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Daniel R. Schiess and Sarah E. Griswold.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Lafayette Businessman Pleads Guilty to Charge in Scheme That Cost Investors MillionsRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Herbert S. “Steve” Fouke, 54, of Lafayette, pleaded guilty before U.S. District Judge Richard T. Haik to conspiracy to commit securities fraud, investment adviser fraud, wire fraud and mail fraud, involving an investment scheme that cost clients $8 million.
According to documents filed at the guilty plea, Fouke became a client of Lafayette resident Richard Buswell in 2006. Buswell worked as a licensed stockbroker from 2006 until 2009 for Bowman Investment Group LLC, which was also Buswell’s company.
Fouke admitted to recruiting friends and business associates to become clients of Buswell and the Bowman Investment Group. Fouke also admitted to being present at meetings between Buswell and his clients, during which Buswell made false statements to the clients about his credentials, the commissions he would charge, and the rates of return that he guaranteed the clients would receive. Buswell admitted in a guilty plea July 24, 2013 to engaging in frequent and excessive stock trades in order to earn commissions.
Fouke faces up to five years in prison, three years of supervised release, a $250,000 fine, and restitution for the conspiracy count. Buswell faces up to 20 years in prison, three years of supervised release, a $250,000 fine, and restitution for a wire fraud count. Sentencing dates have not been set.
The Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Kelly P. Uebinger and Howard C. Parker are prosecuting the case.
Justice Department Settles Lawsuit Alleging Auto Lending Discrimination in Los AngelesRead the Press Release
The United States has settled a lawsuit alleging that an automobile dealership formerly doing business in Los Angeles violated the Equal Credit Opportunity Act (ECOA) by charging non-Asian customers higher interest rate markups than other customers for a period of at least three years, the Justice Department announced today. Union Auto Sales Inc., has agreed to pay $125,000 to resolve the allegations against it. The court entered the consent decree on Sept. 4, 2013.
The department’s amended complaint, filed in federal court in Los Angeles in March 2010, alleged that Union Auto Sales Inc., doing business as Union Mitsubishi, as well as other dealerships that are now out of business and in bankruptcy proceedings, charged higher interest rate markups on car loans to non-Asian customers, many of whom were Hispanic, than to similarly-situated Asian customers. In the auto industry, it is common practice for banks and other lenders to set a base interest rate or “buy rate” and then for the auto dealership to “mark up” the interest rate to the final rate the customer pays on the loan for the car. The complaint alleges that Union Auto Sales Inc., charged higher interest rate markups to non-Asian customers from at least 2004 to 2006.
Union Auto Sales Inc., is not currently in, and has no plans to re-enter, the business of automobile sales. Under the consent decree, Union Auto Sales will pay up to $125,000 to non-Asian customers who were charged higher dealer interest rate markups. If Union Auto Sales or its principal shareholder re-enter the business of automobile lending within the two year duration of the consent decree, it will implement clear guidelines for setting dealer markup and pricing, in compliance with ECOA, and establish appropriate fair lending training for its employees and officers.
“The Civil Rights Division enforces federal laws that protect consumers from auto lending discrimination,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “Every consumer should be treated fairly in the pursuit of credit, without regard to their race or nationality.”
This case came out of a referral from the Federal Reserve Board involving Nara Bank. The department entered into a partial consent decree with Nara Bank, a bank that financed many loans for Union Auto Sales and other car dealerships, in 2009. The partial consent decree required the bank to pay $410,000 to compensate several hundred non-Asian borrowers who were aggrieved by the discriminatory conduct.
A copy of the complaint, the consent decree, and the partial consent decree entered into with Nara Bank, as well as additional information about fair lending enforcement by the Justice Department, can be obtained from the Justice Department website at www.usdoj.gov/fairhousing.Justice Department Reaches Settlement withJerome County Idaho Sheriff’s Office to Resolve the Employment Rights of Army National Guard MemberRead the Press Release
The Depatment of Justice and U.S. Attorney Wendy J. Olson for the District of Idaho announced today that they reached an agreement with the Jerome County, Id., Sheriff’s Office to resolve the allegations that Jerome County violated the employment rights of Idaho Army National Guard Member Mervin Jones while he was recuperating from a knee injury that he sustained while performing military service.
The department’s complaint alleged that the Jerome County Sheriff’s Office violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by failing to properly reemploy and subsequently terminating Jones following his service with the Idaho Army National Guard. The complaint states that Jones began working for the Jerome County Sheriff’s Office as a correctional deputy in 2002. By 2007, he had been promoted through the ranks to corporal. During his employment with the sheriff’s office, Jones suffered a knee injury while deployed to Iraq in 2004, which Jones later aggravated in 2008 during a weekend training event with his guard unit. The complaint alleges that in 2009, while Jones was still recuperating from multiple knee surgeries, the sheriff’s office forced him to complete Family Medical Leave Act paperwork even though his leave was protected under USERRA, denied him light duty work to accommodate his physical limitations caused by the knee injury, attempted to subject him to an unlawful “fitness for duty” evaluation and physical fitness test before allowing him to return to work, and terminated his employment during the period of time permitted by USERRA to recover from an injury incurred in the line of duty. The settlement reached is a compromise to avoid the expense and uncertainty of litigation.
Subject to certain limitations, USERRA requires that service members who leave their civilian jobs to serve in the military be reemployed promptly by their civilian employers in the positions they would have held if their employment had not been interrupted by military service or in positions of comparable seniority, pay and status. In addition, USERRA requires employers to accommodate service members who are injured in the line of duty, and allows service members who are recuperating from such an injury up to two years to obtain reemployment without facing termination by their civilian employers.
Under the terms of the agreement, which was filed as a consent decree in the U.S. District Court for the District of Idaho, Jerome County has agreed to pay $150,000, which includes $75,000 in lost wages, to Jones. Jerome County has also agreed to provide a letter that requests Jones’ return to the state employment eligibility register maintained by the Idaho Division of Human Resources.“This settlement demonstrates our commitment to vigorous enforcement of the laws that protect the employment rights of our servicemembers,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The department is pleased that we were able to work cooperatively with Jerome County to resolve this matter without the need for contested litigation.”
“USERRA affords military members who leave their civilian careers behind for significant periods of time to serve our country certain protections against unjust terminations,” said U.S. Attorney Olson. “It is important that all veterans and especially those veterans who are injured serving their country, have the opportunity to return to civilian life and their careers free from worry about termination without cause.”The case stems from a referral by the United States Department of Labor following an investigation by the Department of Labor’s Veterans’ Employment and Training Service. This case is being handled by the Civil Rights Division and the U.S. Attorney’s Office for the District of Idaho.
Additional information about USERRA can be found on the Justice Department website: www.servicemembers.gov and www.usdoj.gov/crt/emp, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
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