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5 September 2013
Former Bank Employee Sentenced to 41-Month Prison Term for Embezzling More Than $2 Million-Defendant Was A Private Banking Associate, Stole from Client Accounts-Read the Press Release
WASHINGTON – Jonathan Weir, 45, a former bank employee, was sentenced today to 41 months in prison on a federal mail fraud charge stemming from his embezzlement of more than $2 million from client accounts, announced U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Weir, of Laurel, Md., pled guilty in May 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Rudolph Contreras. The judge also ordered Weir to pay $2,166,500 in restitution and forfeit $1,469,510 in a money judgment. Upon completion of his prison term, Weir will be placed on three years of supervised release, and, during that time, he must perform 200 hours of community service.
According to the statement of offense signed by the defendant at the plea hearing and agreements made at the sentencing hearing, from 1992 to 2012, Weir was employed at a bank as a private banking associate, assisting with the management of high net-worth clients and their bank accounts. At least from 2000 to 2012, Weir worked with various clients, among them a married couple with accounts at the bank where Weir worked.
From May 2005 to August 2012, Weir withdrew a total of $2,166,500 from bank accounts belonging to the married couple without their permission or authority. Primarily, Weir would debit the clients’ accounts and issue a cashier’s check to one of three individuals, who would ordinarily deposit the money and then return a portion of the money to Weir. On occasion, Weir took cash or money orders, in addition to the cashier’s checks.
In announcing the sentence, U.S. Attorney Machen and Assistant Director in Charge Parlave commended the work of the Special Agents from the FBI’s Washington Field Office who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including: Paralegal Specialist Donna Galindo, Assistant U.S. Attorney Arvind K. Lal of the Asset Forfeiture and Money Laundering Section, and Assistant U.S. Attorney Virginia Cheatham, who prosecuted the case.
13-306Former Bank Employee Sentenced to 41-Month Prison Term for Embezzling More Than $2 Million-Defendant Was A Private Banking Associate, Stole from Client Accounts-Read the Press Release
WASHINGTON – Jonathan Weir, 45, a former bank employee, was sentenced today to 41 months in prison on a federal mail fraud charge stemming from his embezzlement of more than $2 million from client accounts, announced U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Weir, of Laurel, Md., pled guilty in May 2013 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Rudolph Contreras. The judge also ordered Weir to pay $2,166,500 in restitution and forfeit $1,469,510 in a money judgment. Upon completion of his prison term, Weir will be placed on three years of supervised release, and, during that time, he must perform 200 hours of community service.
According to the statement of offense signed by the defendant at the plea hearing and agreements made at the sentencing hearing, from 1992 to 2012, Weir was employed at a bank as a private banking associate, assisting with the management of high net-worth clients and their bank accounts. At least from 2000 to 2012, Weir worked with various clients, among them a married couple with accounts at the bank where Weir worked.
From May 2005 to August 2012, Weir withdrew a total of $2,166,500 from bank accounts belonging to the married couple without their permission or authority. Primarily, Weir would debit the clients’ accounts and issue a cashier’s check to one of three individuals, who would ordinarily deposit the money and then return a portion of the money to Weir. On occasion, Weir took cash or money orders, in addition to the cashier’s checks.
In announcing the sentence, U.S. Attorney Machen and Assistant Director in Charge Parlave commended the work of the Special Agents from the FBI’s Washington Field Office who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including: Paralegal Specialist Donna Galindo, Assistant U.S. Attorney Arvind K. Lal of the Asset Forfeiture and Money Laundering Section, and Assistant U.S. Attorney Virginia Cheatham, who prosecuted the case.
13-306Former Bank Employee Charged with EmbezzlementRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced the filing of a Criminal Information in U.S. District Court in Scranton Wednesday charging Patricia A. Tokash, age 42, of Kingston, Pennsylvania, with bank embezzlement.
According to United States Attorney Peter J. Smith, Tokash was an employee of the M & T Bank located at 15 South Franklin Street, Wilkes-Barre, Pennsylvania. While employed at the bank, Tokash worked in the Government Loan Department and was responsible for administering and processing applications for M & T Bank loans to counties, townships, and municipalities. The Criminal Information alleges that between April 2011 and April 2012, Tokash embezzled approximately $62,995.66 in bank funds from fees paid in connection with loan applications, and/or from accounts at the M & T Bank, and converted the funds to her own use.
The case was investigated by the Federal Bureau of Investigation. Prosecution is assigned to Assistant United States Attorney John Gurganus.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Federal Prison Terms Handed Down in Multi-Million Dollar Money Laundering Conspiracy Involving Los Zetas Drug Trafficking Proceeds, Extortion and BriberyRead the Press Release
In Austin this afternoon, three men including Jose Trevino Morales, the brother of purported Los Zetas leaders, Miguel Trevino Morales (aka “40”) and Oscar Omar Trevino Morales (aka “42”), were sentenced to lengthy federal prison terms for their roles in a complex conspiracy to launder millions of dollars in illicit Los Zetas drug trafficking proceeds to purchase, train, breed, and race American quarter horses in the United States announced United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez, Richard Weber, Chief, Internal Revenue Service Criminal Investigation and DEA Special Agent in Charge Javier Pena.
United States District Judge Sam Sparks sentenced Jose Trevino Morales, age 46, of Balch Springs, TX, and Francisco Colorado Cessa, a 52-year-old Veracruz, Mexico businessman, each to 240 months in federal prison followed by three years of supervised release. Judge Sparks also sentenced Fernando Solis Garcia, a 30-year-old horse trainer and purchasing agent from Ruidoso, NM, to 160 months in federal prison followed by three years of supervised release. Judge Sparks also remanded Garcia into federal custody following today’s hearing.
“The activities of Mexican drug cartels have taken a terrible toll within Mexico. This prosecution and the sentences imposed today should send a clear message to those who would attempt to import their brand of corruption and violence into the United States. We will find you, we will prosecute you and we will seek the most severe consequences the law allows,” stated United States Attorney Robert Pitman.
On May 9, 2013, a federal jury convicted Jose Trevino Morales, Francisco Colorado Cessa, Fernando Solis Garcia, and Eusevio Maldonado Huitron of one count of conspiracy to commit money laundering. Evidence presented during trial revealed that Los Zetas are a powerful drug cartel based in Mexico and generate multi-million dollar revenues from drug trafficking. Since 2008, Miguel and Oscar Trevino Morales would direct portions of the bulk cash generated from the sale of illegal narcotics to Jose Trevino and his wife, 39-year-old Zulema Trevino, for purchasing, training, breeding and racing American quarter horses in the United States.
Testimony also revealed a shell game by the defendants involving straw purchasers and transactions worth millions of dollars in New Mexico, Oklahoma, California and Texas to disguise the source drug money and make the proceeds from the sale of quarter horses or their race winnings appear legitimate. Furthermore, the defendants implemented a scheme to structure cash deposits in amounts under $10,000 in order to circumvent mandatory bank reporting requirements.
“Today’s sentencing marks the successful culmination to a complex, intensive investigation where the FBI, working together with U.S. Attorney’s Office and our law enforcement partners, has demonstrated the ability to dismantle the financial arm of a violent and ruthless drug cartel which has attempted to influence and control legitimate U.S. enterprises and threatened the safety of our community,” stated FBI Special Agent in Charge Armando Fernandez.
Drug Enforcement Administration Special Agent in Charge Javier F. Peña stated, “DEA is satisfied with today’s sentencings. Each sentence handed out today represents the relentless hard work and unyielding dedication DEA and its counterparts utilized to bring the defendants to justice.”
Over 400 quarter horses (which were seized by federal authorities in June 2012 as part of the above-mentioned money laundering operation) have been sold for approximately $9 million. Most of the horses were sold at Heritage Place Auction Facility in Oklahoma City, Oklahoma in the past year including A Dash of Sweet Heat, which sold for $1 million. Approximately 100 broodmares were sold prior to auction for approximately $35,000. The federal government still retains possession of five quarter horses, including Tempting Dash, winner of the Dash for Cash at Lone Star Park race track in Grand Prairie, Texas, on October 24, 2009; Mr. Piloto, $1 million All American Futurity winner at Ruidoso Downs on Labor Day 2010; Dashin Follies; Separate Fire; Y516, a yearling seized in Lexington, OK; and four embryos transferred from donor mares, Dashin Follies and Separate Fire.
U.S. Attorney Pitman noted that the proceeds from the sale of these quarter horses are being held in escrow pending the resolution of a forfeiture action. The Government also seeks the forfeiture of real property in Lexington, OK; farm and ranch equipment located at that site; and funds contained in multiple bank accounts allegedly used in the defendants’ scheme. The Government also seeks a monetary judgment in the amount of $60 million representing property involved in and derived from the conspiracy.
“Today’s sentencing of top leaders of the Los Zetas crime syndicate is a decisive blow against its drug trafficking and money laundering network. It also sends a clear message to those who attempt to hide their ill-gotten gains through investment in legitimate businesses,” said Richard Weber, Chief, IRS Criminal Investigation. “All financial transactions leave a trail and we have the unique expertise to follow those leads. The special agents of IRS Criminal Investigation are committed to taking the profit away from drug traffickers and putting those individuals in jail. IRS Criminal Investigation was proud to provide this financial expertise as we worked alongside our law enforcement partners and bring these brutal criminals to justice.”
Authorities continue to seek the apprehension of seven co-defendants in this case including purported leaders of the Los Zetas, Miguel Trevino Morales (aka “40”) and his brother, 39-year-old Oscar Trevino Morales (aka “42”), as well as 32–year-old Victor Manuel Lopez, 41-year-old Sergio Guerrero Rincon, 41-year-old Luis Gerardo Aguirre, Erick Jovan Lozano Diaz and Gerardo Garza Quintero. Co-defendants Zulema Trevino, Jose Trevino Morales’ daughter Alexandra Garcia Trevino, age 22, of Oceanside, CA, 33-year-old horse trainer Adan Farias of Norco, CA, 27-year-old Carlos Miguel Nayen Borbolla of Santa Anna, CA, 29–year-old Felipe Alejandro Quintero of Los Alamitos, CA, Eusevio Maldonado Huitron, a 50-year-old horse trainer residing in Austin; and 21-year-old Raul Ramirez of El Paso, TX, are scheduled to be sentenced tomorrow beginning at 9:00am before Judge Sparks in Austin.
This investigation was conducted by agents with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Drug Enforcement Administration with assistance from the United States Marshals Service, Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) and U.S. Customs and Border Patrol, as well as local law enforcement agents in Irving, TX, Lorena, TX, Bruceville-Eddy, TX, Fort Worth, TX and Laredo, TX. The investigation received assistance from the Texas Army National Guard, Cleveland County (OK) Sheriff’s Office, and the Oklahoma and New Mexico Racing Commissions. The U.S. Attorney’s Office for the Eastern District of Texas prosecuted several members of the Los Zetas drug cartel on drug trafficking charges related to this conspiracy and provided substantial assistance to this investigation. The U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) provided assistance with the forfeiture action in this case.
Federal Grand Jury Returns 11-Count Indictment Charging Roman with Killing Local Law Enforcement Officer Engaged in Performance of Official DutiesRead the Press Release
Other Counts Allege Firearms, Drug ViolationsSALT LAKE CITY – A federal grand jury returned an indictment Thursday morning charging Roberto Miramontes Roman, age 41, a citizen of Mexico, with intentionally killing Millard County Deputy Sheriff Josie Greathouse Fox while she was engaged in the performance of her official duties.
The indictment alleges that Roman, during the commission of, in furtherance of, and while attempting to avoid apprehension, prosecution, and service of a prison sentence for a felony drug violation, intentionally killed Deputy Fox on Jan. 5, 2010.
The first six counts of the indictment allege distribution of methamphetamine (three counts); possession of a firearm in furtherance of a drug trafficking crime (one count); and carrying a firearm(s) during and in relation to a drug trafficking crime (two counts).
Roman also faces one count of use, carry and discharge of a firearm in relation to a crime of violence. This count of the indictment relates to the alleged use of an AK-47 in the shooting death of Deputy Fox.
Two counts of the indictment allege Roman was restricted from possessing firearms under federal law because of a conviction of a crime punishable by imprisonment for a term exceeding one year and his illegal status in the country. The final count of the indictment alleges Roman, who was deported from the United States around Sept. 23, 2005, illegally re-entered the country.
The potential maximum penalty for each count of distribution of methamphetamine is 20 years in prison, although prosecutors intend to file a notice of intent to seek an increase in the statutory maximum to 30 years.
The four firearm counts related to the possession of a firearm in furtherance of a drug trafficking offense and the use, carry, and discharge of a firearm during the commission of a drug trafficking offense or a violent crime carry potential penalties of life in prison. The mandatory minimum for possession of a firearm in further a drug trafficking crime and carrying a firearm during and in relation to a drug trafficking crime are also five-year mandatory minimums. The mandatory-minimum for the discharge of a firearm during and in relation to a crime of violence is 10 years. Each conviction following the first one is a mandatory minimum of 25 years. Any of these sentences must run consecutively to any other sentence of imprisonment on other counts.
The potential penalty for each count of possession of a firearm by a restricted person and re-entering the country after a previous deportation is 20 years.
The potential maximum penalty for the count alleging intentionally killing a local law enforcement officer engaged in the performance of official duties in this case is life in prison with a statutory mandatory minimum sentence of 20 years.
Federal prosecutors anticipate Roman will be scheduled for arraignment on the charges in the next few weeks. He is currently serving a state prison sentence.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The case is being prosecuted by the U.S. Attorney’s Office in Utah and investigated by the ATF. U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) also has contributed to the case.
(Follow the U.S. Attorney’s Office on Twitter @DUTnews)Federal Grand Jury Indicts Six, Three Others Set to Plead Guilty, 5 Businesses Identified in Food Stamp Fraud Investigation in Rhode IslandRead the Press Release
PROVIDENCE, R.I. – A two-year criminal investigation conducted by the United States Attorney’s Office; the U.S. Department of Agriculture, Office of Inspector General; U.S. Department of Agriculture, Food and Nutrition Service, Retailer Investigations Branch; Internal Revenue Service Criminal Investigation; and the Rhode Island State Police has resulted in federal indictments charging six individuals and the filing of federal criminal charges against three others who are set to plead guilty for their alleged roles in various conspiracies and actions to defraud the federally funded Supplemental Nutrition Assistance Program (SNAP), commonly referred to as the food stamp program, of more than $3 million dollars.
At a news conference to announce the findings of the investigation to date and resulting federal charges, United States Attorney Peter F. Neronha identified five Providence area businesses named in court documents where it is alleged that store owners and/or employees allowed SNAP benefit recipients to use their Electronic Benefit Transfer (EBT) cards to exchange their SNAP benefits for cash, a violation of the program’s laws and regulations. It is alleged that in return, the defendants added a surcharge to the recipients’ withdrawal of SNAP benefits, usually an amount equal to that of the amount of cash benefit received by the recipient. SNAP benefit funds are transferred electronically directly to accounts managed by the retailer.
United States Attorney Peter Neronha announced that over the past two years, a pattern of alleged conspiracies and SNAP benefits abuse was revealed when federal law enforcement undercover investigators visited area convenience stores; examined thousands of documents, bank records and tax filings; and reviewed information and evidence seized during the execution of court authorized search warrants at several businesses on April 1, 2013.
Among the individuals named in federal grand jury indictments returned on Wednesday, and in informations and plea agreements filed with the U.S. District Court on Wednesday, are owners, managers and/or employees of the Corner Store, Regency Mart, Stop & Go, Dugout and Cristina’s Market, all located in Providence.
In addition to the ongoing criminal investigation and resulting criminal charges announced today, over the past two years the USDA Food and Nutrition Service, administrators of SNAP, permanently disqualified 37 Rhode Island retailers from participating in the food stamp program and sanctioned 15 others for violating the program's laws and regulations. Violations ranged from allowing the purchase of unauthorized merchandise to trafficking cash.
United States Attorney Peter F. Neronha commented, “The conduct alleged in the charging documents removed a tremendous amount of money from the food stamp benefit program that could otherwise go to feed a hungry adult or a hungry child. Such conduct on the part of some food stamp recipients is plainly improper, and subject to administrative action. Such alleged conduct on the part of retailers, motivated only by greed, is outrageous, and warrants the full attention of this Office and our law enforcement partners.”
USDA Office of Inspector General, Special Agent in Charge William G. Squires Jr.said“The Supplemental Nutrition Assistance Program was created to provide food and nutrition to those who truly need assistance. Those who are involved in fraud and abuse of SNAP and other USDA programs will be aggressively pursued by our office. Our joint investigative effort in Rhode Island has successfully uncovered and brought to justice several individuals and stores who sought to profit from the SNAP program through illegal schemes. The USDA Office of Inspector General will continue to dedicate resources and work with our Federal, State and local law enforcement partners in order to protect the integrity of these programs and to prosecute those who commit fraud.”
John Collins, Acting Special Agent in Charge of IRS Criminal Investigation stated, “The IRS enforces the nation's tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has abused our system of providing for our citizens who have the greatest needs. Supplemental Nutrition Assistance Program benefits are designed to help individuals with the most basic of human necessities. Fraud in the system takes our limited resources away from those in need and erodes confidence in the system. With both law enforcement and financial investigation expertise, Special Agents of IRS Criminal Investigation are uniquely qualified to assist state and federal law enforcement agencies with these types of cases by following the money. We are pleased with the developments in these investigations due to the cooperative efforts of our law enforcement partners---the U.S. Attorney’s Office, the U.S. Department of Agriculture, the Rhode Island Attorney General’s Office and the Rhode Island State Police.”
Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police added, “EBT Fraud affects the legitimate food stamp process, the economy, and confidence of the public with the proper distribution of funds to those who really need it.”
“I applaud the initiative of the law enforcement agencies present here today to address fraud in the EBT system,” said Rhode Island Attorney General Peter F. Kilmartin. “Since being briefed on this initiative by the United States Attorney many months ago, our goal has been to ensure that there is a coordinated effort to address those who defraud the system, and who therefore deprive our most needy citizens of the benefits they are entitled to. This case is yet another reminder of the fact that law enforcement functions best when the efforts of federal, state, and local agencies are coordinated towards a common goal, and we will continue to work together in the weeks and months ahead to ensure that those who have attempted to cheat the system are held accountable.”
The cases are being prosecuted in U.S. District Court in Providence by Assistant U.S. Attorneys Sandra R. Hebert and Richard B. Myrus.
An indictment and information are merely allegations and are not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/Mustafa Al Kabouni, 52
Cranston, RI
Counts 1, 3, 5, 8-30Mohamad Barbour, 53
North Providence, RI
Counts 1, 5, 11, 13Mohamad Amir Al Kabouni, 43
North Providence, RI
Counts 1-4, 6, 9, 10, 12, 14Mohamad Eid Al Kabouni, 22
Cranston, RI
Counts 1, 6, 7, 14-16Count I: Conspiracy to defraud the United States
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised releaseCounts II, III, IV, V, VI, VII: SNAP benefit fraud - $100 or more
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised releaseCount VIII: SNAP benefit fraud - $5,000 or more.
Max Penalties: 20 years imprisonment; $250,000 fine; 3 years supervised releaseCounts IX-XVI: Wire fraud
Max Penalties: 20 years imprisonment; $250,000 fine; 3 years supervised releaseCounts XVII-XXII: Money laundering
Max Penalties: 20 years imprisonment; $500,000 fine; 3 years supervised releaseCounts XXIII-XXX: Structuring
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised release
Amir Rasheed, 33
Flushing, NY
Counts 1-22Karuna Mehta, 43
North Smithfield
Counts 1-8Count I: Conspiracy to defraud the United States
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised releaseCounts II, III, IV, V, VI, VII: SNAP benefit fraud - $100 or more
Max Penalties: 5 years imprisonment; $250,000 fine; 3 years supervised releaseCounts XVIII-XXII: Money laundering
Max Penalties: 20 years imprisonment; $500,000 fine; 3 years supervised releaseContact: 401-709-5357
[email protected]Federal Grand Jury Charges Two Dallas-Area Residents with Defrauding Investors in Gold Purchase SchemeRead the Press Release
Defendant Arrested at JFK International Airport Prior to
Boarding Flight to GhanaDALLAS — A federal grand jury in Dallas returned an indictment yesterday afternoon charging two recent, Dallas-area residents, Annetta Lou Smith, aka “Annette Crawford,” 49, and Warren Michael Hills, 54, with felony offenses related to a gold purchase investment fraud scheme they ran. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
On August 27, 2013, according to the criminal complaint filed in the case, Smith was informed that an indictment charging Smith and Hills with fraud would be presented to a federal grand jury on Wednesday, September 4, 2013. On Sunday evening, September 1, 2013, Smith was arrested by FBI agents at JFK International Airport where she was awaiting a flight she had booked to Ghana that was scheduled to depart later that evening. She made her initial appearance in federal court in the Eastern District of New York on Tuesday, September 3, and remains in custody; a date has not been set for her to appear in federal court in Dallas. A warrant has been issued for Hills’ arrest.
The indictment charges each defendant with one count of conspiracy to commit wire fraud and two substantive counts of wire fraud. 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, each count of the indictment carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine. In addition, restitution could also be ordered.
The indictment alleges that beginning in July 2010 and continuing at least to December 2010, Smith and Hills represented to investors that they were in the business of buying gold at a discount price in Ghana. This gold, according to the defendants, came from small gold mines in Ghana that did not produce enough gold to sell to large gold refining companies. The defendants invited investors to travel to Achimoto, Ghana, and other locations in Ghana, so that they could further explain the discount gold purchase program and convince investors that the investment program was a legitimate investment opportunity.
When investors arrived in Ghana, the defendants had them open bank accounts where one account was used for investor funds, in U.S. dollars, and the other was used to deposit and transfer Ghana currency. In fact, to build each investors’ trust, the defendants encouraged each investor to conduct a “test transaction” or “test purchase” in which the defendants had a particular investor wire a relatively small amount of funds from a bank in the U.S. to the defendants to purchase one kilogram of gold. This was done with the understanding that if the investor was satisfied with this initial small purchase, the investor would later agree to send additional funds to an account he had opened.
Defendants, however, fraudulently transferred investor funds to accounts they controlled in Ghana and they fraudulently retained all of the investor funds even though they well knew that they did not make all of the gold shipments which they had promised to investors. The defendants tried to keep the scheme going by making false statements to investors to explain why all the promised gold had not been shipped. When investors demanded that all their invested funds be returned, the defendants refused and kept the money for themselves.
Smith and Hills caused substantial monetary losses to many investors. For example, one investor, M.W., transferred $586,833 to Hills’ account in Ghana. After the test transaction of one kilogram of gold, Smith and Hills falsely promised another 12.5 kilograms of gold would be delivered to M.W. However, Smith and Hills only shipped a total of six kilograms to M.W., fraudulently retaining approximately $325,000 of M.W.s funds.
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.
The case is being investigated by the FBI. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
Dubuque Man Convicted of Unlawful Possession of FirearmsRead the Press Release
A felon who unlawfully possessed two firearms was convicted by a jury today after a two-day trial in federal court in Cedar Rapids.
Daniel Lee Campbell, age 30, from Dubuque, Iowa, was convicted of one count of possession of a firearm by a felon. The verdict was returned this morning following about 50 minutes of jury deliberations.
The evidence at trial showed that around 11:00 p.m. on June 10, 2013, officers from the Dubuque Police Department responded to a 911 call regarding a man with a firearm on Bluff Street. As officers approached the area, they spotted Campbell who matched the description provided in the 911 call. When an officer asked Campbell to stop, Campbell ran away and pulled two guns from his pants. Campbell tossed one gun as he ran through an alley behind a church. Campbell took the second gun and fired a shot over his shoulder at the pursuing officers before tossing the gun into a fenced-in area behind the church. Campbell hid from officers in a trash pile a couple of blocks away before being apprehended around 12:30 a.m. Campbell had previously been convicted in United States District Court in 2007 of providing a false statement to a federal firearms licensee, a felony offense.
Sentencing before United States District Court Chief Judge James Gritzner will be set after a presentence report is prepared. Campbell remains in custody of the United States Marshal pending sentencing. Campbell faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, and Firearms.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-1010.
Donna Schneeberger Sentenced in Utica to Probation and FineRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced the imposition of sentence in United States District Court in Utica on Donna Schneeberger for the offense of filing a false tax return.
Donna Schneeberger, 53, of Clayton, NY pled guilty in April, 2013, to a single count of subscribing and filing a false tax return, relating to income earned by her husband’s dental business. On September 4, 2013, District Judge David N. Hurd sentenced the defendant to a term of probation of three years and a fine of $25,000. Ms. Schneeberger admitted that the joint income tax return that she had signed and filed for tax year 2007 had failed to include income earned by the dental practice, for which she maintained the books and records. She admitted that between 2005 and 2007, she had failed to report over $700,000 in income, and the District Court found that she had deprived the United States of taxes in excess of $230,000.
The Court imposed a sentence of a fine and probation, stating its reliance, in part, upon its recognition of the defendant’s extensive civic contributions in Watertown and Clayton. The defendant, who prior to sentencing had paid the unreported taxes, was ordered by Judge Hurd to pay all interest and penalties resulting from the criminal behavior as part of her probation.
This case is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division in Syracuse, NY. Further questions or inquiries may be directed to Executive Assistant United States Attorney John Duncan, at (315) 448-0672.
Distributing Methamphetamine and Selling Firearms Illegally Sends Unicoi Market Operator to Federal Prison for 46 MonthsRead the Press Release
GREENEVILLE, Tenn.- Billy Joe Rice, 55, of Unicoi County, was sentenced on September 5, 2013, to serve 46 months in federal prison by the Honorable Leon Jordan, U.S. District Judge. Rice pleaded guilty in August 2012 to a federal indictment charging him with distribution of methamphetamine and dealing firearms without a license. Upon his release from prison, Rice will serve three years of supervised release.
A three year investigation revealed that Rice was buying and selling firearms, some of which were stolen, from a market he operated in Unicoi, Tenn. He did not have a federal firearms license. Investigators learned that Rice was also acquiring materials for the manufacture of methamphetamine and distributing methamphetamine.
Law enforcement agencies participating in this investigation which lead to the indictment and subsequent conviction of Rice included the Unicoi County Sheriff’s Department, Erwin Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Robert Reeves represented the United States.
U.S. Attorney Bill Killian praised the law enforcement agencies involved for eliminating an outlet for stolen firearms, and reducing the possibilities that the firearms will fall into the hands of felons and other drug dealers.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crimes face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Department of Justice Reaches Settlement with Virginia School District to Ensure Equal Opportunites for English Language Learner StudentsRead the Press Release
The Department of Justice’s Civil Rights Division has reached a comprehensive settlement agreement with the Prince William County School District in Virginia to improve services for approximately 13,000 students who are English Language Learners (ELLs) and provide language access for Limited English Proficient (LEP) parents district-wide. With the district’s cooperation, the department conducted an extensive examination of the ELL programs offered by all 93 schools in the district to determine whether ELL students were receiving adequate services as required by the Equal Educational Opportunities Act of 1974 (EEOA). This examination was prompted by compliance issues identified during the department’s earlier EEOA investigation of a complaint regarding the ELL program at a district middle school.
The department identified several issues in its review, including inadequate ELL services for ELL students, an insufficient number of properly qualified teachers and administrators, inadequate ELL materials, gaps in the district’s communications with LEP parents, insufficient procedures for identifying and serving ELL students with disabilities and ensuring nondiscriminatory discipline of ELL students, an incomplete process for families to opt out of ELL services, and a lack of effective monitoring and evaluation of the district's ELL programs.
The agreement requires the district to address these compliance issues identified beginning in the 2013-14 school year and continuing for at least a three-year period. Specifically, the district agrees to:
• Provide all ELL students, including students with disabilities, at all 93 schools with adequate English Language Development (ELD) and sheltered content instruction provided by teachers with appropriate qualifications or training; • Monitor the progress of ELL teachers and administrators towards obtaining required training, and ensure that administrators account for the use of appropriate ELD and sheltering techniques in teacher evaluations; • Require principals or other designated administrators to receive training regarding their ELL program-related responsibilities, including but not limited to establishing meaningful communications with parents of ELL students and LEP parents, ensuring that parents’ decisions to opt their children out of ELL services are informed and monitored, reviewing current and former ELL student performance and recommending program adjustments as needed and providing ELL students with adequate instructional materials; • Modify the district’s registration and enrollment practices to ensure that students are able to access its programs regardless of race, national origin or immigration status; • Provide ELL students and LEP parents with meaningful access to discipline and special education forms, codes, notices, procedures and meetings; • Institute cultural responsiveness training for teachers to promote effective engagement with students from diverse cultural and linguistic backgrounds; and
• Collect and review data to identify and address any student disparities and to evaluate the effectiveness of ELL programs.“We applaud the Prince William County school district for working cooperatively with the United States to ensure that all English language learner students have access to the services to which they are entitled,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “We will continue to work cooperatively with the district to monitor its compliance with the agreement.”
The enforcement of the Equal Educational Opportunities Act is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Related Materials:
Agreement
Defendant in Children Charity Fraud Case Sentenced to PrisonRead the Press Release
Nehemiah Muzamhindo Sentenced for Bilking W.K. Kellogg Foundation of $629,000
GRAND RAPIDS, MICHIGAN – Nehemiah Muzamhindo, a resident of Grand Rapids, Michigan and citizen of Zimbabwe, was sentenced to a total of six years (72 months) in prison on federal charges of money laundering and filing a false tax return. In addition to ordering the prison time, the Hon. Janet Neff, U.S. District Court Judge, also ordered Muzamhindo to pay over $629,000 in restitution and over $79,000 in back taxes.
While the Diplomatic Security Service (DSS) was investigating Muzamhindo for his role in a scheme to obtain fraudulent U.S. passports, agents discovered evidence that Muzamhindo had received large wire transfers from bank accounts held by the W.K. Kellogg Foundation (“WKKF”) in the Republic of South Africa. WKKF has its headquarters in Battle Creek, Michigan and is one of the world’s largest children’s charities. Further investigation revealed that Muzamhindo was part of a scheme to submit bogus invoices for payment to WKKF. WKKF paid members of the scheme a total of approximately $800,000 between 2006 and 2008 before learning that it was being swindled. As part of his sentencing, Muzamhindo was ordered to pay restitution to the WKKF for the amount directly attributable to his role in the scheme. Because Muzamhindo did not report to the IRS any of the money he received from WKKF during those years, the IRS also investigated Muzamhindo, leading to his conviction for filing a false tax return and the order to pay the amount he owed in unpaid taxes as part of his sentence.
U.S. Attorney Patrick Miles commented that “This sentence of prison time and restitution holds Muzamhindo accountable for the full measure of his deceit to both the charity that he swindled and the government. That should be a lesson for others; crime does not pay in this district.”
IRS Criminal Investigation Acting Special Agent in Charge Carolyn Weber added: “Muzamhindo and his accomplices stole money that was meant for the world’s underprivileged children. IRS, DSS and our Federal law enforcement partners will continue to fervently seek justice for the victims of this kind of inexcusable fraud.” Scott Collins, Assistant Special Agent in Charge of the Chicago Field Office of the Diplomatic Security Service, noted “Those who fraudulently acquire U.S. travel documents often do so in order to commit other crimes. Aware of this trend, we were able to uncover the connections to South Africa and the underlying scheme to defraud a charity. DSS takes very seriously our charge to protect the integrity of the U.S. passport and visa programs.”
END
CorrectedRead 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
Local Chiropractor Sentenced on
Health Care Fraud and Tax Evasion ChargesWHEELING, WEST VIRGINIA - A local chiropractor was sentenced on September
5, 2013, in United States District Court in Wheeling by Judge Frederick P. Stamp, Jr.The United States Attorney’s Office announced that:
JOSEPH J. YURIGAN, age 62, of New Alexandria, Pennsylvania, was sentenced to 18 months imprisonment to be followed by two years of supervised release. YURIGAN entered pleas of guilty on October 9, 2012, to one count of Health Care Fraud by submitting a fraudulent claim to a health care benefit program and one count of Income Tax Evasion for the calendar year 2008. YURIGAN a doctor of chiropractic medicine and licensed to practice in the State of West Virginia operated two chiropractic clinics in the Northern District of West Virginia. One clinic is located in Weirton, West Virginia and is operated under the name Weirton Chiropractic Clinic. The other clinic was operated under the name Wheeling Spine Center.
As part of his plea, YURIGAN will make restitution of $513,373.92 for the health care violation and $322,692.03 for the tax evasion violation.
YURIGAN, who is free on bond, will self-report to the designated Federal institution on October 7, 2013.
This case was prosecuted by Assistant United States Attorneys Randolph J. Bernard and Alan G. McGonigal and investigated by the Federal Bureau of Investigation, the Ohio Bureau of Workers Compensation-Special Investigations Department, the West Virginia Insurance Commission-Fraud Investigation Unit and the Internal Revenue Service-Criminal Investigations.
Complaint Filed in Joint Investigation of Sex Offenses Involving Children: Acting Director of CNMI Division of Fish and Wildlife Charged with Coercion and EnticementRead the Press Release
Saipan, MP – United States Attorney for the Districts of Guam and the Northern Mariana Islands Alicia A.G. Limtiaco, together with the Federal Bureau of Investigation (FBI), Commonwealth of the Northern Mariana Islands (CNMI) Attorney General’s Office, and CNMI Department of Public Safety announced today the filing of a federal charge stemming from a joint investigation of sex offenses involving children:
- RAYMOND BORJA ROBERTO, acting Director of the CNMI Division of Fish and Wildlife, was charged in a federal criminal complaint with Coercion and Enticement, in violation of Title 18, United States Code, Section 2422(b). A conviction carries a statutory minimum of at least ten years and a maximum sentence of life imprisonment.
U.S. Attorney Limtiaco stated that this prosecution is part of the U.S. Department of Justice’s Project Safe Childhood initiative, a nationwide initiative to protect children from sexual predators.
The investigation originated with the CNMI Department of Public Safety and was investigated jointly by DPS Criminal Bureau of Investigations and the FBI. The case is being prosecuted by Assistant United States Attorneys Rami Badawy and Ross Naughton.
The charge is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Copies of the complaints are attached.
Cocke County Drug Dealer Who Threatened TBI Agent Sentenced to 135 Months in Federal PrisonRead the Press Release
GREENEVILLE, Tenn. – Clayton Carroll Owenby, 45, of Newport, Tenn., was sentenced on September 5, 2013, to serve 135 months in prison, by the Honorable Leon Jordan, U.S. District Judge. Owenby pleaded guilty to a March 2013 federal indictment charging him and nine others with conspiracy to distribute oxycodone. Additionally, Owenby pleaded guilty to a separate federal indictment, filed in May 2013, charging him with threatening to retaliate against a witness.
The conspiracy for which Owenby was convicted of being a part, involved conspirators obtaining prescriptions for oxycodone from various pain clinics and physicians across the state of Tennessee and then redistributing the drug in the Eastern District of Tennessee. Owenby admitted that he obtained 5,718 total dose units (totaling 176,240 milligrams) of oxycodone from multiple physicians.
While in federal custody during the pendency of his drug case, Owenby made numerous phone calls to his mother, Kathleen Garrett, wherein he threated to physically retaliate against the lead case agent and his family. Owenby admitted to making these threats in response to the agent’s role in the investigation. Garrett also pleaded guilty to threatening to retaliate against a witness and is scheduled to be sentenced on September 19, 2013.
“This sentence reflects, not only the defendant’s serious original crime, but the totally unacceptable threats of physical harm to the federal agent and his family,” said U. S. Attorney William C. Killian.
This case is the result of a joint investigation by the Cocke County Sheriff’s Office and Tennessee Bureau of Investigation. Assistant U.S. Attorney Suzanne Kerney-Quillen is representing the United States.
Chicago Man Sentenced on Mortgage Fraud and Identity Theft ChargesRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Julius Willard, 55, of Chicago, Il., who was convicted of bank fraud and aggravated identity theft, was sentenced to 94 months in prison by U.S. District Judge Richard Arcara, and ordered to pay over $7,000,000 in restitution.
Assistant U.S. Attorney Maura K. O'Donnell, who handled the case, stated that the defendant submitted fraudulent mortgage applications to various financial institutions, including HSBC Bank, while he worked as a mortgage broker in the Atlanta, Georgia, area. Willard's conduct resulted in a loss of over $7,000,000 to the victim financial institutions.
The defendant was part of a scheme that recruited individuals to apply for mortgages and purchase income properties. Willard then submitted mortgage applications on behalf of the borrowers, which included false information as to borrowers' employment, salary, and residency; and fraudulent pay stubs, employment verification forms, and bank statements as supporting documentation.
At the time he engaged in this conduct, the defendant was ineligible to work as a licensed mortgage broker, due to his criminal record. Willard utilized identifying information of another individual to gain employment with a mortgage brokerage firm and to carry out his scheme to defraud the financial institutions.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Steven L. Lanser, along with Special Agents of the Housing and Urban Development Office of Inspector General, Atlanta, Georgia Office, and the United States Attorney's Office for the Northern District of Georgia.Canadian nationals charged in $9 million tax refund schemeRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. and Assistant Attorney General Kathryn Keneally of the U.S. Department of Justice, Tax Division, announced today that a federal grand jury in Rochester has returned a 19-count superseding indictment charging Daveanan Sookdeo, Kevin Cyster, Jonathan Neufeld, Christina Starkbaum, Renee Jarvis, Jose Compuesto, all of Ontario, Canada, and Timothy Johnston, of Nova Scotia, Canada with conspiring to defraud the Internal Revenue Service, stealing government funds, filing false claims against the United States and transporting money taken by fraud in foreign commerce. The charges each carry a maximum penalty of between five and 10 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that according to the superseding indictment, the defendants conspired to defraud the United States by filing at least 18 false non-resident federal income tax returns, claiming more than $9,000,000 in false federal income tax refunds. In response to the false returns, the IRS sent Treasury Checks totaling more than $3.5 million to the defendants in Canada.
"We've said before that both individuals and companies in this country must play by the rules," said U.S. Attorney Hochul. "This is particularly true for foreign nationals who would seek to defraud the American public out of their hard earned tax dollars."
According to the indictment, the defendants are Canadian citizens and residents. Daveanan Sookdeo served as a middleman between the other Canadian defendants and Ronald Brekke, a previously convicted California fraud promoter. Brekke made false IRS Forms 1099-OID for the defendants and electronically transmitted them to the IRS. The Forms 1099-OID reported that the defendants creditors, such as banks and mortgage companies, had withheld large amounts of federal income taxes and paid the taxes over to the IRS. In fact, there were no such withholdings or payments to the IRS. The defendants then filed individual income tax returns with the IRS, attaching copies of false Forms 1099 and fraudulently claiming refunds of the nonexistent tax withholdings.
The indictment further states that during 2009 and 2010, the defendants crossed the border from Canada into the United States and opened bank accounts in Niagara Falls, Rochester, Brockport, and Kenmore, N.Y. The defendants deposited the tax refund checks in those accounts and then transferred funds to financial institutions in Canada and the United States.
According to court filings, the grand jury previously returned a one count indictment against Kevin Cyster in November 2012, charging him with filing a false claim to the United States, after Cyster was arrested while attending the "2012 Family Reunion" of the Global Information Network in Nashville, Tennessee.
This case is just the latest in a continuing series of multi-million dollars tax cases prosecuted by the Western District of New York in the last 45 days. On July 30, 2013, defendant John Gizzi pleaded guilty to filing false tax returns and agreed to pay $11,000,000 to the Government in criminal restitution and to settle civil claims.
The superseding indictment is the result of an investigation on the part of Special Agents of the Internal Revenue Service - Criminal Investigation, under the direction of Special Agent In Charge Toni Weirach. The evidence was presented to the Grand Jury by Assistant U.S. Attorney Marisa J. Miller and Jeffrey A. McLellan, Tax Division Trial Attorney, who will handle the trial of the case.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Buffalo Woman Pleads Guilty to Tax Evasion and Falsifying a Passport ApplicationRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Diane Abram, 61, of Buffalo, N.Y., pleaded guilty before U.S. District Court Chief Judge William M. Skretny, to tax evasion and making false statements in a passport application. The charges carry a maximum penalty of 15 years in prison, a fine of $350,000 or both.
Assistant U.S. Attorney Maura K. O'Donnell, who is handling the case, stated that in January, 2013, the defendant applied for a U.S. Passport, in the name Diane Ballard, at the U.S. Passport Office in Buffalo. On the application, the defendant failed to disclose that she had previously utilized the name Diane Abram, and had previously obtained passports in the name Diane Abram. The passport office detected the fraud and Abram admitted that she lied on the application and intentionally attempted to obtain passports in two separate names and social security numbers to avoid collection of outstanding taxes.
Further investigation revealed that the defendant owed the Internal Revenue Service approximately $25,000 and that she ignored and evaded collection efforts by using an alternate name and social security number, and by failing to notify the IRS of this alternate name and social security number.
The plea is the culmination of a joint investigation on the part of Special Agents of the Internal Revenue Service, under the direction of Special Agent-In-Charge Toni Weirauch, and Agents of the U.S. Department of State Diplomatic Security Service, under the direction of Special Agent in Charge Roy Stillman.
Sentencing is scheduled for January 13, 2014 at 9:00 a.m. before Judge Skretny.Barre Man Sentenced to 66 Months in Federal Prison for Possessing Stolen HandgunsRead the Press Release
The Office of the United States Attorney for the District of Vermont, stated that on September 5, 2013, Bruce Lamell, 39, of Barre, Vermont, was sentenced to 66 months in federal prison for possessing firearms stolen from R&L Archery, a sporting goods store located in Barre, Vermont. United States District Judge William K. Sessions III, sitting in Burlington, also ordered Lamell to serve a term of three years of supervised release following Lamell’s prison sentence.
According to court records, Lamell broke into R&L Archery during the early morning hours of October 29, 2011 and stole five handguns and other merchandise. Law enforcement officials recovered all five stolen firearms from Lamell’s Barre residence on the evening of October 29, 2011. At the time he committed the offense, Lamell was serving a 6-month to 2-year sentence imposed by the Vermont Superior Court in Washington County following Lamell’s 2010 felony conviction for grand larceny. The Vermont Department of Corrections permitted Lamell to serve his sentence at home pursuant to the Department’s furlough program.
For possessing the stolen firearms, Lamell faced a maximum federal prison sentence of 10 years. Pursuant to a written plea agreement, the parties agreed that the court should impose a sentence between 48 and 66 months. In sentencing Lamell to the high end of the agreed-upon range, Judge Sessions considered, among other factors, Lamell’s criminal record and the gravity of the offense.
United States Attorney Tristram J. Coffin commended the efforts of the Bureau of Alcohol Tobacco Firearms and Explosives, the Barre City Police Department, and the Federal Bureau of Investigation for their hard work and coordinated efforts on this investigation. The prosecutor is Assistant United States Attorney Timothy C. Doherty, Jr. Lamell Newton is represented by Mark Kaplan.
United States Attorney Coffin noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood, a nationwide commitment to reduce gun crime in America. Led by the U.S. Attorney’s Office and the Bureau of Alcohol Tobacco, Firearms and Explosives, Project Safe Neighborhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who violate federal gun laws. For more information about Project Safe Neighborhood and Project Safe Vermont, please visit: www.psn.gov.
Army Soldier Pleads Guilty in Denver to Bribery Charges for Facilitating Thefts of Fuel in AfghanistanRead the Press Release
Former U.S. Army Specialist Stephanie Charboneau pleaded guilty today to bribery charges for her role in the theft of fuel at Forward Operating Base (FOB) Fenty, near Jalalabad, Afghanistan, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Charboneau, 34, of Fountain, Colo., pleaded guilty before U.S. District Judge Phillip A. Brimmer in the District of Colorado to one count of conspiracy to commit bribery and one substantive count of bribery.
According to court documents, from approximately February through May 2010, Charboneau was involved in overseeing the delivery of fuel from FOB Fenty to other military bases. As part of this process, documents generally described as transportation movement requests (TMRs) were created to authorize the movement of fuel.
Court documents state that Charboneau created fraudulent TMRs that purported to authorize the transport of fuel from FOB Fenty to other military bases, even though no legitimate fuel transportation was required. After the trucks were filled with fuel, the fraudulent TMRs were used by the drivers of the fuel trucks at FOB Fenty’s departure checkpoint in order to justify the trucks’ departures from FOB Fenty. In truth, the fuel was simply stolen.
Charboneau pleaded guilty to receiving payments from a representative of the trucking company in exchange for facilitating the theft of approximately 90 fuel trucks. According to court documents, the loss to the United States as a result of the theft was in excess of $1.5 million.
At sentencing, scheduled for Dec. 12, 2013, Charboneau faces a maximum penalty of five years in prison for conspiracy and 15 years in prison for bribery.
Charboneau’s plea is the fourth guilty plea arising from this investigation of fuel thefts at FOB Fenty. On Aug. 3, 2012, Jonathan Hightower, a civilian employee of a military contractor who had conspired with Charboneau, pleaded guilty to similar charges. On Oct.10, 2012, Christopher Weaver, who also conspired with Charboneau, pleaded guilty to fuel theft charges. Both Weaver and Hightower pleaded guilty in the District Court of Colorado. On Aug. 29, 2013, Sergeant Bilal Kevin Abduallah, who succeeded Charboneau at FOB Fenty, pleaded guilty in the Western District of Kentucky to fuel theft related charges.
This case was investigated by the Special Inspector General for Afghanistan Reconstruction; Department of the Army, Criminal Investigations Division; Defense Criminal Investigative Service; and FBI. This case is being prosecuted by Fraud Section Trial Attorney Mark H. Dubester of the Justice Department’s Criminal Division.
Alleged Bank Robber ChargedRead the Press Release
Marcus Akiem Ricketts, 36, of Boyertown, Pennsylvania was charged today by superseding indictment with armed bank robbery and using and carrying a firearm during a crime of violence, announced United States Attorney Zane David Memeger. These charges stem from four armed bank robberies. The indictment alleges Ricketts committed the following armed robberies: on June 8, 2010, at the Sovereign Bank, located at 258 East High Street, Pottstown, Pennsylvania; on January 24, 2012, at the Citizens Bank, located at 209 Lancaster Avenue, Devon, Pennsylvania; on April 12, 2012, at the First Niagara Bank, located at 502 State Avenue, Emmaus, Pennsylvania; and on July 2, 2012, at the Manufacturers and Traders Trust Company (“M&T Bank”), formerly located at 760 North Pottstown Pike, in Exton, Pennsylvania.
If convicted of all charges, Ricketts faces a maximum possible sentence of life imprisonment, with a mandatory minimum term of 82 years, five years of supervised release, a $2 million fine, and an $800 special assessment.This case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, the Chester County Sheriff’s Department, the Chester County Detectives, and the police departments for Easttown Township, Emmaus, Lower Merion, Pottstown, Uwchlan, Shillington Township, Warminster, and West Whiteland, Pennsylvania. In addition, the District Attorney’s offices for the counties of Berks, Bucks, Chester, Lehigh and Montgomery were also involved in the investigation. This case is being prosecuted by Assistant United States Attorney Jeffery W. Whitt.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Alabama Man Pleads Guilty to Cashing <br /> Fraudlent Tax Refund ChecksRead the Press Release
David Haigler, of Montgomery County, Ala., pleaded guilty in U.S. District Court for the Middle District of Alabama today to one count of theft of public funds and to one count of passing U.S. Treasury checks with forged endorsements, the Justice Department, the Internal Revenue Service (IRS) and U.S. Secret Service announced today.
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 prosecuted the case. Special Agents of IRS - Criminal Investigation and the U.S. Secret Service conducted the investigation.
Adams Thermal Systems to Pay $1.33 Million to Resolve OSHA Citations, Criminal Penalties in 2011 Death of Worker at South Dakota PlantRead the Press Release
CANTON, S.D. – Adams Thermal Systems Inc. has entered into a deferred prosecution agreement with the U.S. Attorney’s Office and the U.S. Department of Labor’s Occupational Safety and Health Administration to pay more than $1.33 million to resolve criminal penalties and OSHA fines levied as a result of the death of a worker on Nov. 7, 2011, in the company’s Canton plant. The U.S. Attorney’s Office filed the Deferred Prosecution Agreement on Sept. 5, 2013, and has asked that it be approved by the U.S. District Court for the District of South Dakota.
Under the terms of the agreement, the company will pay the worker’s surviving spouse $450,000, a criminal fine of $450,000 and the full OSHA fine of $435,000stemming from the regulatory violations that caused the fatality and additional violations discovered in subsequent inspections.
OSHA’s investigation found the worker was fatally crushed in a machine used to make radiator cores, after management instructed and authorized workers to bypass the manufacturer’s barrier guard in order to adjust the machine to keep it running. OSHA also conducted two concurrent safety and health investigations at the company in February 2012, which resulted in 66 violations.
“Adams Thermal failed to provide a safe workplace, and those conditions ultimately took the life of a worker. There is no excuse for an employer to compromise safety to keep production running,” said Assistant Secretary of Labor for Occupational Safety and Health Dr. David Michaels. “The Department of Labor has worked diligently with the Office of the United States Attorney for South Dakota to resolve this case and provide justice to the family of this worker. No one should ever lose their life for a job.”
Because the willful violations cited by OSHA caused the worker’s death, the case was referred to the U.S. Attorney for the District of South Dakota in November 2012 for criminal prosecution. Criminal Chief Dennis Holmes handled the case for the U.S. Attorney’s Office.
“The purpose of this settlement, which was reached after discussions with the victim’s family, is to provide justice to the family and deter similar corporate conduct in the future,” said U.S. Attorney Brendan Johnson. “The right of South Dakotans to a safe work environment isn’t optional, it is fundamental. I commend OSHA for their investigative efforts, and I am pleased with the settlement that has been reached.”
The agreement resolves both of the OSHA civil cases, and includes significant enhanced abatement of violations by the company. Adams Thermal Systems agreed to: increase the size of its safety and health department; implement a companywide safety and health program; provide incentives for managers and workers to report safety issues and make safety recommendations; and to hire a qualified third-party to review guarding and lockout/tagout for all plant machinery and to audit the abatement of all identified hazards. The company will also report quarterly to OSHA for three years on safety progress and reportable illnesses and injuries, and redesign the safety systems and procedures on the radiator core machine involved in the fatality.
The agreement will resolve three willful citations issued for $210,000 on April 26, 2012, as a result of the fatality investigation. The settlement also resolves the additional citations issued on August 2012, following two concurrent comprehensive safety and health inspections, with proposed penalties of $225,000. The comprehensive safety and health cases involved 58 serious violations and eight other-than-serious violations addressing unlabeled piping systems; obstructions in aisles and passageways; unguarded machinery; crane and hoist hazards; improper exits; electrical hazards and exposures to chemicals, dust, and noise.
OSHA placed Adams Thermal Systems, which manufactures engine cooling systems for off-highway and on-highway vehicles, in its Severe Violator Enforcement Program in August 2012 as a result of these inspections. The program mandates targeted follow-up inspections to ensure compliance with the law. The program focuses on recalcitrant employers that endanger workers by committing willful, repeat or failure-to-abate violations.
To ask questions, obtain compliance assistance, file a complaint or report workplace hospitalizations, fatalities or situations posing imminent danger to workers, the public should call OSHA’s toll-free hotline at 800-321-OSHA (6742).
Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA’s role is to ensure these conditions for America’s working men and women by setting and enforcing standards, and providing training, education and assistance. For more information, visit http://www.osha.gov.
4 September 2013
“Checkbook Bandit” Sentenced to 90 Months in Federal Prison for Committing Five Bank Robberies in Three Months in Desoto, TexasRead the Press Release
DALLAS — The bank robber who was dubbed the “Checkbook Bandit” by the FBI, as he used a checkbook registry to display his demand notes in the robberies, Victor Lemond Williams, 43, of Dallas, was sentenced this morning by U.S. District Judge Ed Kinkeade to 90 months in federal prison. Williams has been in custody since his arrest in January 2012. U.S. Attorney Sarah R. Saldaña, of the Northern District of Texas, made the announcement today.
Williams pleaded guilty to an indictment charging five counts of bank robbery, admitting that he committed the following five bank robberies in Desoto, Texas:
- Chase Bank September 19, 2011
721 W. Beltline Road December 5, 2011
December 23, 201
- Bank of America September 22, 2011
931 W. Beltline Road January 3, 2012
The case was investigated by the Desoto Police Department and the FBI. Assistant U.S. Attorney Taly Haffar was in charge of the prosecution.
- Chase Bank September 19, 2011
Wolcott Man Sentenced to 26 Months in Federal Prison for Role in Illegal Campaign Contribution SchemeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, announced that GEORGE TIRADO, 36, of Wolcott, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 26 months of imprisonment, followed by one year of supervised release for his participation in a scheme to direct illegal campaign contributions into the campaign of a candidate for the U.S. House of Representatives. TIRADO was also ordered to pay a $5,000 fine. At the time of the offense, TIRADO was the co-owner of a Roll Your Own (“RYO”) smoke shop while also serving as a detective with the Waterbury Police Department.
“A substantial prison term is warranted for any individual who violates federal campaign finance laws in order to influence elected officials for personal gain,” stated Acting U.S. Attorney Daly. “That this defendant was a veteran police detective who ignored his oath and broke the law makes this sentence even more appropriate.”
“Today’s sentence sends a clear message to those of us who are sworn to uphold the law, that no one is above the law,” stated FBI Special Agent in Charge Mertz. “It should be an honor and privilege to protect and serve the public. Instead, George Tirado betrayed his oath of honor when he conspired with others to direct illegal campaign contributions. This conduct threatens to undermine both the public’s faith in the election process and in law enforcement.”
According to court documents and statements made in court, in August 2011, the State of Connecticut applied for a court order enjoining RYO smoke shops from continuing to operate without complying with state law governing tobacco manufacturers. RYO smoke shops are retail businesses that sell loose smoking tobacco and cigarette-rolling materials and offer customers the option of paying a “rental” fee to insert the loose tobacco and the rolling materials into a RYO machine, which is capable of rapidly rolling large quantities of cigarettes. Customers did not pay a tax on the RYO cigarettes when rolled by the RYO machines, in contrast to cigarettes purchased over-the-counter.
TIRADO and Paul Rogers co-owned Smoke House Tobacco, a RYO smoke shop with two locations in Waterbury. Fearing that the Connecticut General Assembly would enact legislation harmful to RYO smoke shop owners’ business interests during the 2012 legislative session, TIRADO, Rogers, Harry Raymond “Ray” Soucy and others engaged in a scheme to direct conduit campaign contributions into the campaign of Christopher Donovan, a candidate for the U.S. House of Representatives. At the time, Donovan was also the Speaker of the Connecticut House of Representatives. As part of the scheme, the co-conspirators recruited multiple individuals to serve as conduit contributors to the campaign. These individuals permitted checks to be written in their own names to the campaign and were reimbursed with cash, thereby concealing the fact that RYO smoke shop owners were contributing to the campaign.
On November 15, 2011, TIRADO obtained a signed blank check from one of his smoke shop employees. TIRADO then made the check payable to the campaign in the amount of $2,500, and assured the employee that she would be reimbursed. That same evening, TIRADO attended a campaign fundraising event where he completed a contribution form in the employee’s name. The contribution form contained a representation that the contribution was being funded by the individual named on the form. He then provided the check to Rogers who delivered it to a campaign employee.
The next morning, TIRADO provided another conduit contribution in the amount of $2,500 to Soucy prior to a meeting that they had scheduled with the candidate. Soucy then gave the check to a campaign employee.
On November 21, 2011, TIRADO deposited $2,500 in cash into the checking account of the employee who had served as a conduit contributor on November 15. The $2,500 came from the business proceeds of Smoke House Tobacco.
In December 2011, Rogers, Soucy and others attended another fundraising event and delivered two more $2,500 conduit contributions to the campaign.
On approximately January 31, 2012, the Christopher Donovan for Congress campaign committee submitted to the Federal Election Commission (“FEC”) a report of the committee’s receipts and disbursements for the period October 1, 2011 through December 31, 2011. The report falsely stated the source and amount of the four $2,500 contributions that were received and deposited by the campaign committee during that time period.
In the spring of 2012, the conspirators made additional illegal campaign contributions totaling $17,500.
During today’s sentencing, Judge Arterton also found that TIRADO lied to FBI special agents investigating this scheme during an interview that was conducted on June 4, 2012.On April 19, 2013, TIRADO pleaded guilty to one count of conspiracy to make false statements to the FEC and to impede the FEC’s enforcement of federal campaign finance laws.
Rogers, Soucy and five others, including two employees of the Donovan for Congress campaign, have also been convicted of charges stemming from this scheme.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Eric J. Glover.
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U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Vincent Lee Garner Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 28, 2013, before Chief U.S. District Judge Dana L. Christensen, VINCENT LEE GARNER, age 48, was sentenced to a term of:
Prison: 38 months
Special Assessment: $100
Supervised Release: 3 years
GARNER was sentenced in connection with his guilty plea to failure to register as a sexual offender.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
From the fall of 2011 through October 2012, GARNER had traveled to Montana from out of state and failed to register as a sex offender once he arrived in Montana. GARNER was required to register as a sex offender as a result of a 1999 sex offense conviction from Oregon.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that GARNER will likely serve all of the time imposed by the court. In the federal system, GARNER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the United States Marshals Service.
Valley Center Man Sentenced to 11+ Years for Bank RobberyRead the Press Release
WICHITA, KAN. -- A Valley Center man has been sentenced to federal prison for a 2012 bank robbery, U.S. Attorney Barry Grissom said today.
Dlaney M. Nixon, 24, Valley Center, Kan., was sentenced to 140 months in federal prison. He pleaded guilty to one count of bank robbery. Nixon and two other defendants -- Henry J. Adams, III and Terry G. Revels -- were indicted in October 2012. Court documents alleged that on Oct. 15, 2012, the men robbed the Intrust Bank at 142 N. Ash in Valley Center. Nixon and Revels entered the bank wearing ski masks and hoodies and carrying black bags, Johnson waited outside in a white Cadillac to act as a lookout. They took money from bank tellers’ drawers and fled the bank.
Officers responding to the robbery located the Cadillac near 81st North and West Street in Valley Center and chased the car several miles before it stopped on Sheriden Court and the robbers fled on foot in different directions.
Nixon was arrested following a foot chase after he fled the car.
Co-defendant Terry G. Revels was sentenced to 235 months in prison.
Co-defendant Henry J. Adams, III, was sentenced to 140 months in prison.Grissom commended the agencies that took part in the investigation including the Valley Center Police Department, the FBI, the Sedgwick County Sheriff’s Office, the Wichita Police Department, the Kansas Highway Patrol, the Park City Police Department, the Maize Police Department, the Kechi Police Department, the Haysville Police Department, the Colwich Police Department, the Andale Police Department, the Mount Hope Police Department and the State Parole Office, as well as Assistant U.S. Attorney David Lind, who prosecuted the case.
United States, Utah, Juab County and Environmental Groups Reach Settlement over Use of Public Roads on Federal LandsRead the Press Release
The U.S. District Court in Utah has concluded proceedings and approved a settlement of a lawsuit involving three claimed highway rights-of-way on Bureau of Land Management (BLM) administered public land adjacent to and within the Deep Creek Mountains Wilderness Study Area (WSA). The court approved the settlement between the United States, the state of Utah and Juab County, and the Southern Utah Wilderness Alliance, The Wilderness Society, and the Sierra Club.
Under the settlement, negotiated by the Justice Department on behalf of the U.S. Department of the Interior and the BLM, public highway rights-of-way are recognized in those segments of the three claimed routes for which evidence of historic use satisfies the requirements of R.S. 2477. R.S. 2477 is a provision enacted by Congress in 1866 that provided for public access across public lands by granting rights-of-way for the construction of highways. R.S. 2477 was repealed in 1976, but such rights-of-way that were established before its repeal are considered to be valid existing rights.
The terms of the settlement state that the roads shall not be developed, widened or otherwise enlarged, although they may be repaired if necessary. In addition, the public may once again access the clearing known as Camp Ethel at the end of the Granite Canyon Road. The parties also agreed that vehicle travel on some segments of the roads is subject to seasonal restrictions, and that Juab County would adopt an ordinance requiring vehicles to stay on the roads and not travel past their ending points, which the County passed in February 2013, and for the County to help patrol the roads on high-use weekends.
BLM has agreed to conduct monitoring concerning water quality in Granite Canyon Creek and other resources, and the County and BLM will continue to work together in balancing needs for public access and protection of the WSA and its resources. The State and Juab County have agreed not to claim other R.S. 2477 rights-of-way in the WSA and will limit their claims to rights-of-way on federal lands adjoining the WSA to twelve designated routes.
“The agreement is the first to settle longstanding claims by the state and counties of Utah for highway rights-of-way on federal lands, and does so in an environmentally sound and responsible manner,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “This landmark settlement will recognize three historic rights-of-way claimed by Utah and Juab County that will remain in their primitive, undeveloped condition, while providing ample protection for the unique environment of the Deep Creek Mountains Wilderness Study Area.”
“I am very pleased that all the parties involved were able to work together to resolve this issue and settle this lawsuit in a way that promotes public interests and protects the resources on our public lands,” said Juan Palma, BLM Utah State Director. “This settlement serves as a tangible reminder that certain R.S. 2477 issues can be resolved through good-faith negotiations and cooperation.”
The Deep Creek Mountains WSA, spread across 68,910 acres in Tooele and Juab Counties, is an extremely remote location known for its combination of biological and geological wonders. Stretching 32 miles in length and 15 miles at its widest point, the area is considered an “island” ecosystem due to its distance from inhabited areas. It is home to alpine meadows, evergreen and aspen forests, and habitats for the peregrine falcon and six other sensitive bird species. Some of the nine perennial streams that run through the WSA are populated by a pure strain of the Bonneville cutthroat trout, a state sensitive species. It also features impressive geological formations such as quartzite cliffs.
The State and Juab County filed the lawsuit in 2005 pursuant to the federal Quiet Title Act, and claimed that they held public highway rights-of-way, under R.S. 2477, to segments of three primitive roads known as the Trout Creek Road, Toms Creek Road and Granite Canyon Road.
The three environmental groups were allowed to intervene as defendants in the lawsuit. The parties engaged in long-term, good faith negotiations that resulted in the detailed and comprehensive settlement that has now been approved by the Federal District Court, and which dismisses the lawsuit.
The settlement underscores that representatives of the federal government, the State of Utah and its counties, and the environmental community can, through good-faith negotiations, resolve R.S. 2477 claims. This is especially important given that in the last few years, the State and counties across Utah have filed over 25 similar Quiet Title Act lawsuits asserting claims for approximately 12,000 R.S. 2477 rights-of-way on federal public lands across the State.
United States Reaches Settlement with Safeway to Reduce Emissions of Ozone-Depleting Substances NationwideRead the Press Release
In a settlement agreement with the United States, Safeway, the nation’s second largest grocery store chain, has agreed to pay a $600,000 civil penalty and implement a corporate-wide plan to significantly reduce its emissions of ozone-depleting substances from refrigeration equipment at 659 of its stores nationwide, estimated to cost approximately $4.1 million, announced the U.S. Environmental Protection Agency (EPA) and Department of Justice today.
The settlement involves the largest number of facilities ever under the Clean Air Act (CAA)’s regulations governing refrigeration equipment.
The settlement resolves allegations that Safeway violated the federal CAA by failing to promptly repair leaks of HCFC-22, a hydro-chlorofluorocarbon that is a greenhouse gas and ozone-depleting substance used as a coolant in refrigerators, and failed to keep adequate records of the servicing of its refrigeration equipment. Safeway will now implement a corporate refrigerant compliance management system to comply with stratospheric ozone regulations. In addition, Safeway will reduce its corporate-wide average leak rate from 25 percent in 2012 to 18 percent or below in 2015. The company will also reduce the aggregate refrigerant emissions at its highest-emission stores by 10 percent each year for three years.
“Safeway’s new corporate commitment to reduce air pollution and help protect the ozone layer is vital and significant,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Fixing leaks, improving compliance and reducing emissions will make a real difference in protecting us from the dangers of ozone depletion, while reducing the impact on climate change.”
“This first-of-its-kind settlement will benefit all Americans by cutting emissions of ozone-depleting substances across Safeway’s national supermarket chain,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “It can serve as a model for comprehensive solutions that improve industry compliance with the nation’s Clean Air Act.”
HCFC-22 is up to 1,800 times more potent than carbon dioxide in terms of global warming emissions. The measures that Safeway has committed to are expected to prevent over 100,000 pounds of future releases of ozone-depleting refrigerants that destroy the ozone layer.
EPA regulations issued under Title VI of the CAA require that owner or operators of commercial refrigeration equipment that contains over 50 pounds of ozone-depleting refrigerants, and that has an annual leak rate greater than 35 percent repair such leaks within 30 days.
HCFCs deplete the stratospheric ozone layer, which allows dangerous amounts of cancer-causing ultraviolet rays from the sun to strike the earth, leading to adverse health effects that include skin cancers, cataracts, and suppressed immune systems. Pursuant to the Montreal Protocol, the United States is implementing strict reductions of ozone-depleting refrigerants, including a production and importation ban by 2020 of HCFC-22, a common refrigerant used by supermarkets.
The settlement is part of EPA’s national enforcement initiative to control harmful air pollution from the largest sources of emissions, including large grocery stores.
Corporate commitments to reduce emissions from refrigeration systems have been increasing in recent years. EPA’s GreenChill Partnership Program works with food retailers to reduce refrigerant emissions and decrease their impact on the ozone layer and climate change by transitioning to environmentally friendlier refrigerants, using less refrigerant and eliminating leaks, and adopting green refrigeration technologies and best environmental practices.
Safeway, headquartered in Pleasanton, Calif., is the second largest grocery chain in North America with 1,412 stores in the United States and 2012 revenues of $44.2 billion. Safeway operates companies under the banner of Vons in southern California and Nevada, Randalls in Texas, and Carrs in Alaska. The settlement covers 659 Safeway stores – all Safeway stores in the United States that have commercial refrigeration equipment regulated by the CAA except for those stores in Safeway’s Dominick’s Division, which was the subject of a 2004 settlement with the United States.
The settlement was lodged today in the U.S. District Court for the Northern District of California, and is subject to a 30-day public comment period and final court approval. It will be available for viewing at www.justice.gov/enrd/Consent_Decrees.
For more information: http://www2.epa.gov/enforcement/safeway-inc-clean-air-act-settlement.
Two Romanian Nationals Sentenced to Prison for Scheme to Steal Payment Card DataRead the Press Release
Adrian-Tiberiu Oprea, 29, of Constanta, Romania, and Iulian Dolan, 28, of Craiova, Romania, were sentenced today to serve 15 years and seven years in prison, respectively, for participating in an international, multimillion-dollar scheme to remotely hack into and steal payment card data from hundreds of U.S. merchants’ computers, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney John P. Kacavas of the District of New Hampshire; and Holly Fraumeni, Resident Agent in Charge of the U.S. Secret Service, Manchester, N.H., Resident Office.
On May 7, 2013, Oprea, who was extradited to the United States from Romania, pleaded guilty to one count of conspiracy to commit computer fraud, one count of conspiracy to commit wire fraud and two counts of conspiracy to commit access device fraud. On Sept. 17, 2012, Dolan pleaded guilty to one count of conspiracy to commit computer fraud and two counts of conspiracy to commit access device fraud.
Court documents state that, from approximately 2009 to 2011, Oprea conspired with Dolan and Cezar Butu, 27, of Ploiesti, Romania, to hack into hundreds of computers located in the United States to steal credit, debit and payment account numbers and associated data (collectively “payment card data”) that belonged to U.S. cardholders.
According to court documents, Oprea and Dolan remotely hacked into hundreds of U.S. merchants’ point-of-sale (POS) or “check out” computer systems, where customers’ payment card data was electronically stored. Specifically, Oprea, who was the leader of the scheme, and Dolan, who was his trusted aide, first used the Internet to identify U.S.-based vulnerable POS systems. After identifying a vulnerable system, Oprea and Dolan would gain access and install software programs called “keystroke loggers” (or “sniffers”) onto the POS systems. These programs would record, and then store, all of the data that was keyed into or swiped through the merchants’ POS systems, including customers’ payment card data.
Oprea and Dolan retrieved the card data and then electronically transferred it to various electronic storage locations (“dump sites”) that Oprea had set up. Oprea later attempted to use the stolen payment card data to make unauthorized charges on, or transfers of funds from, the accounts. He also attempted to transfer the stolen payment card data to other co-conspirators for them to use in a similar manner. During the course of the conspiracies, the co-conspirators hacked into several hundred U.S. merchants’ POS systems, including 250 Subway restaurant franchises, and stole payment card data belonging to more than 100,000 U.S. cardholders. Their criminal conduct caused losses of at least $17.5 million in unauthorized charges and remediation expenses.The case was investigated by the U.S. Secret Service, with assistance from the New Hampshire State Police and Romanian authorities.
The case is being prosecuted by Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire. Significant assistance was provided by the Criminal Division’s Office of International Affairs.
Two Romanian Nationals Sentenced to Prison for Scheme to Steal Payment Card DataRead the Press Release
WASHINGTON – Adrian-Tiberiu Oprea, 29, of Constanta, Romania, and Iulian Dolan, 28, of Craiova, Romania, were sentenced today to serve 15 years and seven years in prison, respectively, for participating in an international, multimillion-dollar scheme to remotely hack into and steal payment card data from hundreds of U.S. merchants’ computers, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney John P. Kacavas of the District of New Hampshire; and Holly Fraumeni, Resident Agent in Charge of the U.S. Secret Service, Manchester, N.H., Resident Office.
On May 7, 2013, Oprea, who was extradited to the United States from Romania, pleaded guilty to one count of conspiracy to commit computer fraud, one count of conspiracy to commit wire fraud and two counts of conspiracy to commit access device fraud. On Sept. 17, 2012, Dolan pleaded guilty to one count of conspiracy to commit computer fraud and two counts of conspiracy to commit access device fraud.
Court documents state that, from approximately 2009 to 2011, Oprea conspired with Dolan and Cezar Butu, 27, of Ploiesti, Romania, to hack into hundreds of computers located in the United States to steal credit, debit and payment account numbers and associated data (collectively “payment card data”) that belonged to U.S. cardholders.
According to court documents, Oprea and Dolan remotely hacked into hundreds of U.S. merchants’ point-of-sale (POS) or “check out” computer systems, where customers’ payment card data was electronically stored. Specifically, Oprea, who was the leader of the scheme, and Dolan, who was his trusted aide, first used the Internet to identify U.S.-based vulnerable POS systems. After identifying a vulnerable system, Oprea and Dolan would gain access and install software programs called “keystroke loggers” (or “sniffers”) onto the POS systems. These programs would record, and then store, all of the data that was keyed into or swiped through the merchants’ POS systems, including customers’ payment card data.
Oprea and Dolan retrieved the card data and then electronically transferred it to various electronic storage locations (“dump sites”) that Oprea had set up. Oprea later attempted to use the stolen payment card data to make unauthorized charges on, or transfers of funds from, the accounts. He also attempted to transfer the stolen payment card data to other co-conspirators for them to use in a similar manner. During the course of the conspiracies, the co-conspirators hacked into several hundred U.S. merchants’ POS systems, including 250 Subway restaurant franchises, and stole payment card data belonging to more than 100,000 U.S. cardholders. Their criminal conduct caused losses of at least $17.5 million in unauthorized charges and remediation expenses.The case was investigated by the U.S. Secret Service, with assistance from the New Hampshire State Police and Romanian authorities.
The case is being prosecuted by Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire. Significant assistance was provided by the Criminal Division’s Office of International Affairs.
Two Patient Recruiters of Miami Home Health Company<br /> Plead Guilty in $48 Million Health Care Fraud SchemeRead the Press Release
Two patient recruiters of a Miami health care company pleaded guilty late yesterday for their participation in a $48 million home health Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; and Special Agent in Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Elizabeth Monteagudo, 33, and Cristobal Gonzalez, 39, both of Miami, pleaded guilty on Sept. 3, 2013, before U.S. District Judge Joan A. Lenard to one count each of conspiracy to receive health care kickbacks. Monteagudo also pleaded guilty to receipt of kickbacks in connection with a federal health care program. Both charges carry a maximum penalty of five years in prison, and sentencing for both defendants is scheduled for Dec. 2, 2013.
According to court documents, Monteagudo and Gonzalez were patient recruiters who worked for Caring Nurse Home Health Care Corp., and Gonzalez also worked for Good Quality Home Health Care, Inc. Caring Nurse and Good Quality were Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries.
According to court documents, from approximately January 2009 through approximately June 2011, Monteagudo and Gonzalez would recruit patients for Caring Nurse and/or Good Quality and would solicit and receive kickbacks and bribes from the owners and operators of Caring Nurse and/or Good Quality in return for allowing the agency to bill the Medicare program on behalf of the recruited patients. These Medicare beneficiaries were billed for home health care and therapy services that were medically unnecessary and/or not provided.Monteagudo also admitted to her involvement with $7 million in fraudulent billings for Starlite Home Health Agency Inc., which she owned and operated.
In a related case, on Feb. 27, 2013, Rogelio Rodriguez and Raymond Aday, the owners and operators of Caring Nurse and Good Quality, were sentenced to serve 108 and 51 months in prison, respectively. Their sentencings followed their December 2012 guilty pleas each to one count of conspiracy to commit health care fraud charged in an October 2012 indictment, which charged that from approximately January 2006 through June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or not provided. Medicare actually paid approximately $33 million for these fraudulent claims.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Two Patient Recruiters of Miami Home Health Company Plead Guilty in $48 Million Health Care Fraud SchemeRead the Press Release
Two patient recruiters of a Miami health care company pleaded guilty late yesterday for their participation in a $48 million home health Medicare fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; and Special Agent in Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG) Office of Investigations Miami Office made the announcement.
Elizabeth Monteagudo, 33, and Cristobal Gonzalez, 39, both of Miami, pleaded guilty on Sept. 3, 2013, before U.S. District Judge Joan A. Lenard to one count each of conspiracy to receive health care kickbacks. Monteagudo also pleaded guilty to receipt of kickbacks in connection with a federal health care program. Both charges carry a maximum penalty of five years in prison, and sentencing for both defendants is scheduled for Dec. 2, 2013.
According to court documents, Monteagudo and Gonzalez were patient recruiters who worked for Caring Nurse Home Health Care Corp., and Gonzalez also worked for Good Quality Home Health Care, Inc. Caring Nurse and Good Quality were Miami home health care agencies that purported to provide home health and therapy services to Medicare beneficiaries.
According to court documents, from approximately January 2009 through approximately June 2011, Monteagudo and Gonzalez would recruit patients for Caring Nurse and/or Good Quality and would solicit and receive kickbacks and bribes from the owners and operators of Caring Nurse and/or Good Quality in return for allowing the agency to bill the Medicare program on behalf of the recruited patients. These Medicare beneficiaries were billed for home health care and therapy services that were medically unnecessary and/or not provided.
Monteagudo also admitted to her involvement with $7 million in fraudulent billings for Starlite Home Health Agency Inc., which she owned and operated.
In a related case, on Feb. 27, 2013, Rogelio Rodriguez and Raymond Aday, the owners and operators of Caring Nurse and Good Quality, were sentenced to 108 and 51 months in prison, respectively. Their sentencings followed their December 2012 guilty pleas each to one count of conspiracy to commit health care fraud charged in an October 2012 indictment, which charged that from approximately January 2006 through June 2011, Caring Nurse and Good Quality submitted approximately $48 million in claims for home health services that were not medically necessary and/or not provided. Medicare actually paid approximately $33 million for these fraudulent claims.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Assistant Chief Joseph S. Beemsterboer of the Criminal Division’s Fraud Section.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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.
Two More Defendants Plead Guilty in Manhattan Federal Court to Participating in Gambling Rings Connected to Organized CrimeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that EDWIN TING and JUSTIN SMITH pled guilty today in Manhattan federal court for their respective roles in high-stakes illegal gambling businesses connected to organized crime enterprises. TING pled guilty before U.S. District Court Judge Jesse M. Furman to conducting an illegal gambling business, an illegal poker game. SMITH pled guilty before Judge Furman to accepting a financial instrument in connection with unlawful Internet gambling, an illegal sportsbook.
TING and SMITH were charged in April 2013 in a 34-defendant indictment charging members and associates of two Russian-American organized crime enterprises with various crimes including racketeering, money laundering, extortion, and various gambling offenses.
Manhattan U.S. Attorney Preet Bharara said: “Edwin Ting and Justin Smith ran high-stakes poker and sportsbook operations, respectively, that handled many millions of dollars in illegal gambling. They were part of an underground enterprise trying to be invisible to law enforcement. Their guilty pleas are an important step toward the resolution of this case.”
According to the Indictment, other documents filed in this case, and statements made at various conferences in this case:
TING ran a high-stakes illegal poker game in New York City from 2010 through 2013. At these games, the pots frequently reached tens of thousands of dollars or more. The operators of these games, including TING, collected percentages of the pots known as “rakes.” These poker games employed at least five or more people to assist with the operation of the games, payments of debts, and collection of debts.
SMITH assisted Hillel Nahmad, Illya Trincher, and others in operating their own high-stakes sportsbook in New York that catered to millionaires and billionaires. Those clients typically placed bets online through various accounts maintained on gambling websites that were operating illegally in the United States. Tens of millions of dollars in bets were placed through those online accounts each year.
TING and SMITH each face a maximum sentence of five years in prison and three years of supervised release. As part of his plea agreement, TING agreed to forfeit $2,000,000 to the United States. As part of his plea agreement, SMITH agreed to forfeit $500,000 to the United States. TING and SMITH are both scheduled to be sentenced by Judge Furman on January 7, 2014 at 2:30 p.m. and 3:30 p.m., respectively.
TING and SMITH are the fourth and fifth defendants to plead guilty in the case. The following defendants have previously pled guilty and will also be sentenced by Judge Furman:
- Bryan Zuriff pled guilty on July 26, 2013 and is scheduled to be sentenced on November 25, 2013 at 3:00 p.m.;
- William Barbalat pled guilty on August 14, 2013 and is scheduled to be sentenced on December 16, 2013 at 3:30 p.m.; and
- Kirill Rapoport pled guilty on August 16, 2013 and is scheduled to be sentenced on December 18, 2013 at 3:00 p.m.
The charges against the remaining 29 defendants are merely accusations, and these defendants are presumed innocent unless and until proven guilty
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, the New York City Police Department, and the Internal Revenue Service, Criminal Investigation.
The case is being prosecuted by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Harris M. Fischman, Joshua A. Naftalis, Peter Skinner, and Kristy J. Greenberg of the Organized Crime Unit are in charge of the prosecution. Assistant U.S. Attorneys Alexander Wilson and Christine Magdo of the Office’s Asset Forfeiture Unit are responsible for the forfeiture aspects of the case.
U.S. v. Alimzhan Tokhtakhounov, et al. Indictment
Two Corporate Execs Sentenced to Federal Prison in $630,000 Tax Evasion SchemeRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin announced today that two top senior executives of an employment staffing agency that operated in West Virginia were sentenced to prison for failing to pay more than $630,000 in federal employment taxes. Daniel Hovis, owner and president of Career Search One, Inc., was sentenced to two years in prison. Hovis, 60, of Whittier, NC, previously pleaded guilty in May for failing to pay trust fund taxes to the Internal Revenue Service (IRS). The corporation’s vice president and director of counseling, Janice Hensley, 62, of Charleston, was sentenced today to one year and eight months in prison. Hensley also previously pleaded guilty in May to federal tax evasion.
The sentences were handed down by United States District Judge Thomas E. Johnston in Charleston. Hovis and Hensley together failed to pay more than $600,000 in federal employment taxes that were owed to the IRS.
From 2004 through the first quarter of 2010, Hovis and Hensley withheld trust fund taxes from many employees’ paychecks. The trust fund taxes were monies that were owed to the IRS. Hovis and Hensley each failed to report or pay over trust fund taxes that they had previously withheld from employees’ wages. Trust fund taxes are withheld federal income and Federal Insurance Contribution Act (“FICA”) taxes, which also include Social Security and Medicare taxes. Career Search One, Inc. only partially paid these taxes.
Career Search One, Inc. specialized in providing employees to client businesses for a fee. The corporation’s primary bookkeeping offices were based in Charleston and Wheeling, West Virginia. Hovis and Hensley both worked out of the Charleston location.
From 2004 through the first quarter of 2010, Hovis and Hensley failed to report and pay over approximately $630,158.94 in trust fund taxes to the IRS on behalf of Career Search One, Inc.’s employees. Instead, Hovis and Hensley used the monies for personal expenses. Both executives knew that the corporate funds should have been used for the payment of trust fund taxes.
At sentencing, the Court ordered the defendants to pay restitution in the amount of $630,158.94.
The Internal Revenue Service’s Criminal Investigative Division conducted the investigation. Assistant United States Attorney Meredith George Thomas handled the prosecutions.
Two Area Women Convicted in Home Health Services ConspiracyRead the Press Release
CORPUS CHRISTI, Texas - Sylvia Salinas Ramirez, of Driscoll, and Debra Jean Velasquez, of Robstown, have been convicted of wire fraud and conspiring to do so as part of a scheme to defraud the Texas Medicaid program through fraudulent home health billings, United States Attorney Kenneth Magidson announced today along with Texas Attorney General Greg Abbott.
Ramirez, 52, and Velasquez, 41, were charged in a 14-count federal indictment returned Wednesday, May 8, 2013. Today, they appeared before U.S. District Judge Nelva Gonzales Ramos and entered pleas of guilty to conspiring to submit false and fraudulent bills to the Texas Medicaid Program by wire transmissions as well as wire fraud for using interstate wire transmissions to bill.
The two women admitted that from or about Aug. 1, 2009, through on or about June 15, 2010, they were employed by the Corpus Christi office of MRNG Inc. doing business as Caring Touch Home Health. During that time, they conspired to submit false and fraudulent bills through wire transmissions to the Texas Medicaid program and the Medicaid funded managed care organizations known as Evercare of Texas LLC and Superior Health Plan Inc. for home health services that had not been provided. Ramirez and Velasquez admitted they created false and fraudulent time sheets for former Caring Touch employees for home health services that had not been provided and then fraudulently billed Medicaid, Evercare and Superior in the name of Caring Touch for those non-existent services. They sent approximately 562 of those false and fraudulent bills by wire.
Ramirez and Velasquez also admitted that in order to personally profit from their fraudulent billings, they created phony payroll records from the fraudulent time sheet which they then sent to Caring Tough’s payroll staff. Ramirez and Velasquez then obtained the payroll checks generated from the false and fraudulent time records, forged the signatures of the former Caring Touch employees, then cashed the checks and divided the money among themselves. Caring Touch and the former employees whose names were used on the false time sheets and checks were not accused of any wrongdoing.
Ramirez and Velasquez admitted that as a result of their false and fraudulent claims, Texas Medicaid, Evercare and Superior paid the approximate aggregate sum of $155,127.72. As part of their pleas, the women have agreed to pay restitution in that amount.
Conspiracy to commit wire fraud and wire fraud each carry a maximum punishment of 20 years in federal prison without parole as well as a possible $250,000 fine. Judge Ramos has set sentencing Dec. 3, 2013. Ramirez and Velasquez were permitted to remain on bond pending that hearing.
The charges were the result of a joint investigation conducted by officers and agents of the Corpus Christi Police Department, the FBI, Department of Health and Human Services - Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Special Assistant United States Attorney Rex Beasley and Assistant United States Attorney Jeffery Preston are prosecuting the case.
Twenty-Four Nine Trey Gangster Bloods Gang Members & Associates Indicted for Racketeering, Sex Trafficking, Robbery, Cocaine Distribution, and Multiple Acts of ViolenceRead the Press Release
ALEXANDRIA, Va. – Twenty-four members and associates of the Nine Tray Gangsters, a subgroup, or “set” of the Bloods street gang, were named in an indictment, which was unsealed today. The indictment includes charges of conspiracy to commit racketeering, violence in aid of racketeering, conspiracy to commit sex trafficking, conspiracy to commit robbery, conspiracy to distribute 280 grams or more of crack cocaine, and multiple counts related to the possession and use of firearms.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Col. Edwin C. Roessler, Jr., Fairfax County Chief of Police made the announcement following the unsealing of the indictment.
“Organized crime threatens the safety of our communities,” said U.S. Attorney Neil H. MacBride. “Arresting, prosecuting, and dismantling vicious street gangs remains a top priority of my office and our law enforcement partners. We will continue to aggressively prosecute and eradicate these parasites from our communities. Today’s indictment is indicative of our commitment to this critical work.”
“Today’s arrests send a clear message that violent gangs have no place in our community,” said Assistant Director in Charge Parlave. “While you may not see violence on your neighborhood street, gang members attempt to rule through violence and intimidation, a dangerous mix for impressionable youth within our region. Together with our partners in Fairfax County, the Northern Virginia Regional Gang Task Force, and other law enforcement agencies, we will work to eradicate violent gangs and bring their members to justice.”
“Gang criminal activity will not be tolerated in Fairfax County and the Police Department will aggressively pursue the arrest of all involved in gang criminal enterprises. Protecting our great community is paramount,” said Chief Roessler. “We thank the United States Attorney’s Office for the Eastern District of Virginia for their partnership in combatting criminal gang violence with us in Fairfax County and nationally. This partnership, along with that of our many federal law enforcement partners, will endure to continue making Fairfax County a safe place to live, work, and visit.”
The following individuals are named in the indictment:
Thaddaeus Snow, a/k/a “Storm,” 23, of Manassas, Virginia, is charged with conspiracy to commit racketeering, violence in aid of racketeering, conspiracy to distribute crack cocaine, conspiracy to commit sex trafficking, conspiracy to commit robbery, and using and carrying a firearm during a crime of violence and in furtherance of a drug trafficking crime.
Curtis Martino, a/k/a “Curtis Dodd,” a/k/a “Red Rum,” 29, of Elkridge, Maryland, is charged with conspiracy to commit racketeering and conspiracy to distribute crack cocaine.
William Sykes, a/k/a “Black,” 29, of Bealeton, Virginia, is charged with conspiracy to commit racketeering, violence in aid of racketeering, conspiracy to distribute crack cocaine, conspiracy to commit sex trafficking, and using a firearm during a crime of violence.
George Williams, a/k/a “Champ,” 28, of Bealeton, Virginia, is charged with conspiracy to commit racketeering, violence in aid of racketeering, conspiracy to distribute crack cocaine, conspiracy to commit sex trafficking, and using a firearm during a crime of violence.
Markeith Kerns, a/k/a “LTK,” 20, of Summerduck, Virginia, is charged with conspiracy to commit racketeering, violence in aid of racketeering, conspiracy to distribute crack cocaine, conspiracy to commit sex trafficking, and using a firearm during a crime of violence.
Janee Yates, a/k/a “Alizia,” 23, of Warrenton, Virginia, is charged with conspiracy to commit racketeering, violence in aid of racketeering, conspiracy to distribute crack cocaine, and conspiracy to commit sex trafficking.
Deontae Holland, a/k/a “D-Boy,” 27, of Bealeton, Virginia, is charged with conspiracy to commit racketeering, conspiracy to distribute crack cocaine, and conspiracy to commit sex trafficking.
William Sharp Manning a/k/a “Ill Will,” 24, of Warrenton, Virginia, is charged with conspiracy to commit racketeering, conspiracy to distribute crack cocaine, and conspiracy to commit sex trafficking.
James Watson, a/k/a “Black Kat,” 34, of Gainesville, Virginia, is charged with conspiracy to commit racketeering, conspiracy to distribute crack cocaine, and conspiracy to commit sex trafficking.
Christopher Head a/k/a “Briss,” 25, of Washington, D.C., is charged with conspiracy to commit racketeering and conspiracy to distribute crack cocaine.
Nicole Yates a/k/a “Merlot,” 27, of Fairfax, Virginia, is charged with conspiracy to commit sex trafficking, conspiracy to commit robbery, and using a firearm during a crime of violence.
Candy Minor, 28, of Fredericksburg, Virginia, is charged with conspiracy to commit sex trafficking, conspiracy to commit robbery, and using a firearm during a crime of violence.
Kaleef Tweedy, a/k/a “Bloody Tweed,” 23, of Dumfries, Virginia, is charged with conspiracy to commit sex trafficking, conspiracy to commit robbery, and using a firearm during a crime of violence.
Justin Finley, a/k/a “J Mo,” 24, of Manassas, Virginia, is charged with conspiracy to distribute crack cocaine and conspiracy to commit sex trafficking.
Stephon Greene a/k/a “Blitz,” 21, of Manassas, Virginia, is charged with conspiracy to distribute crack cocaine and conspiracy to commit sex trafficking.
LaTonya Snow, a/k/a “Lady Dynasty,” 30, of Manassas, Virginia, is charged with conspiracy to commit sex trafficking.
Devante Jordan, a/k/a “Trey,” 21, of Alexandria, Virginia, is charged with conspiracy to commit robbery and using a firearm during a crime of violence.
Aayron Marshal, a/k/a “Mook ,” 23, of Warrenton, Virginia, is charged with conspiracy to distribute crack cocaine.
Joshua Pendleton Brooks a/k/a “Wacko,” 27, of Manassas, Virginia, is charged with conspiracy to distribute crack cocaine.
Lionel Ritchie, a/k/a “Boogie,” 29, of Remington, Virginia, is charged with conspiracy to distribute crack cocaine.
Jameel Aleem, a/k/a “Nino B,” 32, of Washington, D.C., is charged with conspiracy to distribute crack cocaine.
Antawn Minor, a/k/a “Noid,” 33, of Manassas, Virginia, is charged with conspiracy to distribute crack cocaine, possession of a firearm by a convicted felon, and carrying a firearm in furtherance of a drug trafficking crime.
Deyonka Gaskins, 29, of Manassas, Virginia, is charged with conspiracy to distribute crack cocaine.
Gracier Isique, 28, of Manassas, Virginia, is charged with conspiracy to distribute cocaine.
All of the defendants face a maximum penalty of life imprisonment if convicted.
According to the indictment, the Nine Trey Gangsters are a Bloods street gang set of the United Blood Nation that was founded in New York City in the early 1970’s. Thaddaeus Snow and Curtis Martino led two “line-ups” of the Nine Trey Gangsters which operated as a criminal enterprise in Virginia, the District of Columbia, and Maryland. The indictment alleges that from 2008 until the date of the indictment, Martino’s and Snow’s line-ups of Nine Trey gangsters engaged in racketeering activity involving the transportation and prostitution of women using force and coercion in Virginia, Maryland, North Carolina, New York, and elsewhere; the commission of robberies; and the distribution of cocaine, crack, marijuana, heroin, ecstasy, and prescription painkillers. The indictment also alleges that the Nine Trey Gangsters dealt in counterfeit United States currency and used counterfeit currency to finance wholesale drug purchases.
Further, the indictment alleges several acts of violence undertaken by gang members. On or about April 1, 2010, according to the Indictment, Snow directed Nine Trey Gangsters to give a female victim a “buck-fifty,” consisting of slashing the face with a knife from mouth to ear with the aim of requiring 150 stiches to close the wound, because the woman had stolen proceeds of the gang’s drug sales. The slashing was allegedly carried-out by defendants Janee Yates and William Sykes. The indictment also alleges that Nine Trey gangsters committed a shooting on April 12, 2010, after the shooting victims became involved in a dispute with one of the gang members, that defendants slapped, beat, and choked prostitutes when they refused to see customers or did not earn enough money, and that Nine Trey Gangsters also beat a fellow gang member to discipline him for trying to leave the gang.
The 24 defendants charged in this indictment brings the total number of Nine Trey Gangster gang members and associates recently charged in the Eastern District of Virginia to 32. On April 2, 2013, an indictment was filed in Richmond against eight Nine Trey Gangster gang members and associates charging them with Conspiracy to Distribute 280 grams or more of Crack Cocaine. All eight of those defendants have previously pleaded guilty to the drug conspiracy charge.
This case was investigated by the FBI’s Washington Field Office and the Fairfax County Police Department, with assistance from the Northern Virginia Regional Gang Task Force, Hampton Police Department, Fauquier County Sheriff’s Office, Manassas City Police Department, and the United States Marshal Service. Assistant United States Attorney Adam B. Schwartz is prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
This case is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation dubbed Operation “Ruby Red,” which has been focusing on the illegal distribution of narcotics by alleged organized crime members.
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.Trio Accused of Operating Fake ID Ring Plead GuiltyRead the Press Release
CHARLOTTESVILLE, VIRGINIA – The three Charlottesville residents accused of producing tens of thousands of fraudulent driver’s licenses and shipping them across the country pled guilty this morning in the United States District Court for the Western District of Virginia in Charlottesville.
Alan McNeil Jones, 31, Kelly Erin McPhee, 31, and Mark Guerin Bernardo, 34, all of Charlottesville, Va., waived their rights to be indicted and pled guilty this morning to a two-count Information. The three defendants each pled guilty to one count of conspiracy to commit identification document fraud and one count of aggravated identity theft.
“These three defendants developed a sophisticated scheme to produce and sell high-quality false identification documents throughout the nation,” United States Attorney Timothy J. Heaphy said today. “Their criminal enterprise was tremendously lucrative, generating profits of more than $3 million over several years. By producing and distributing these fraudulent identification documents, Mr. Jones and his co-conspirators endangered national security. Law enforcement personnel involved in this case will take every available step to recover these counterfeit driver’s licenses and ensure that they cannot be used to facilitate additional criminal activity.”
“The defendants in this case primarily used the U.S. Mail to facilitate their criminal scheme. Postal Inspectors were able to quickly identify the scheme and worked aggressively with our partnering law enforcement agencies and the U.S. Attorney's Office to locate the subjects involved and ultimately dismantle their criminal enterprise. Through cases like these, the Postal Inspection Service upholds it's long standing mission of protecting the public and preventing criminal misuse of the U.S. Mail,” said Keith A. Fixel, Inspector in Charge, U.S. Postal Inspection Service - Charlotte Division.
“Regardless of the reasons for seeking fraudulent documents, U.S. Immigrations and Customs Enforcement (ICE) Homeland Security Investigations (HSI) strives to detect, deter and disrupt individuals and organizations that present an active threat to national security or public safety, and who seek to undermine the integrity of the laws and regulations of the United States,” said Scot Rittenberg, Acting Special Agent in Charge, Washington. D.C. Field Office.
Today in District Court, Jones, McPhee and Bernardo admitted to conspiring to created high-quality fraudulent driver’s licenses out of the home they shared on Rugby Road in Charlottesville, Va. The conspiracy, which began in 2010 and operated under the name Novel Design, produced and sold more than 25,000 fraudulent driver’s licenses, primarily to college students, throughout the nation.
As part of the scheme, Jones paid commissions to students at the University of Virginia, and elsewhere, to refer his service to other students interested in obtaining fraudulent driver’s licenses. He also outsourced some of the manufacturing work to companies in Bangladesh and China.
During the entire period of time in which Novel Design was in operation, Jones, McPhee and Bernardo produced approximately 25,000 fraudulent driver’s licenses for customers. They charged anywhere from $75 to $125 per fake license and the three obtained more than $3 million from customers. To date, over $2.7 million in assets have been seized by law enforcement.
At the height of the conspiracy, Jones, McPhee and Bernardo, were able to create fraudulent driver’s licenses for the states of Arizona, Connecticut, Florida, Georgia, Illinois, Louisiana, Maryland, Maine, Mississippi, Montana, New Jersey, Pennsylvania, Ohio, Rhode Island, South Carolina, Tennessee and Virginia.
At sentencing, each defendant faces a maximum possible penalty of up to 15 years in federal prison on the conspiracy charge and a mandatory additional two-year sentence on the aggravated identify theft charge.
The investigation of the case was conducted by the Department of Homeland Security Investigations, the United States Postal Inspection Service and the Virginia State Police. Assisting in the investigation was the Homeland Security Investigations Laboratory, the United States Postal Inspection Service Laboratory, US Customs and Border Protection, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Albemarle County Police Department, The Charlottesville Police Department, the State Attorney General’s Office for the Commonwealth of Virginia, the United States Secret Service and the Federal Bureau of Investigation, the College of Charleston, the Texas Highway Patrol and the University of Virginia Police. United States Attorney Timothy J. Heaphy and Assistant United States Attorney Ronald Huber are prosecuting the case for the United States.
Timber Lake Man Pleads Guilty to Misprision of A FelonyRead the Press Release
United States Attorney Brendan V. Johnson announced that Nicholas Guttierrez, a/k/a Nicholas Gutierrez, age 19, of Timber Lake, South Dakota, appeared before U.S. District Judge Roberto A. Lange on August 29, 2013, and pled guilty to a Superseding Information that charged him with Misprision of a Felony.
The maximum penalty upon conviction is 3 years in custody and/or a $250,000 fine, 1 year of supervised release, and a $100 assessment to the Federal Crime Victims Fund.
The conviction is the result of a January 6, 2013, late night break-in at the Chatter Box Corner Café and Bar, a downtown business in Timber Lake. Guttierrez had knowledge of the burglary, provided transportation to his co-defendant from the scene of the burglary, and concealed the same from tribal and federal law enforcement officers. He did not, as soon as possible, make known the same to a judge or other person in civil authority.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.
A presentence investigation was ordered, and a sentencing date was set for November 19, 2013. The defendant was released pending sentencing.Three Utah Cities Receive Department of Justice Grants to Support Law Enforcement, CommunitiesRead the Press Release
Ogden, Sandy, and St. George Get FundingSALT LAKE CITY – The U.S. Department of Justice has awarded Edward Bryne Memorial Justice Assistance Grants (JAG) to Ogden, Sandy, and St. George to support law enforcement programs in the three cities.
JAG funding allows states and local governments to support a broad range of activities to prevent crime based on their own local needs. Grant funds can be used for local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support and information systems for criminal justice programs. Funds can be used in a variety of program areas, including law enforcement; prosecution and court programs; prevention and education; corrections; drug treatment and enforcement programs; planning, evaluation, and technology improvement programs; and crime victim and witness programs (other than compensation).
Ogden received a $60,064 grant. Ogden will use the funds for crime reduction programs, technology, training, and specialty units addressing gangs and drugs. Specifically, the city will use the grant to support police overtime, training, and to purchase equipment and software.
Sandy received a $24,285 grant. Sandy will use the funds to purchase duty handguns, patrol bicycles, mobile data terminals, in-car computer printers, and a dual monitor computer. The goal of Sandy’s project is to reduce crime, prevent violence and meet public safety needs.
St. George received a $13,869 grant to support technology upgrades. Funds will be used to purchase a computer server, wireless access hardware, digital video download management software, and digital mobile video camera systems for patrol vehicles to increase efficiency within the police department.
(Follow the U.S. Attorney’s Office on Twitter @DUTnews)Three People Found Guilty of Drug Conspiracy ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that on August 30, 2013, three people were found guilty of drug conspiracy charges following a federal jury trial in U.S. District Court in Rapid City, South Dakota.
Theresa Vocu, age 45, of Kyle, South Dakota, was found guilty of Conspiracy to Distribute Methamphetamine, and Zeno Little, age 57, of Porcupine, South Dakota, and Wesley Yellow Horse Sr., age 57, of Oglala, South Dakota, were each found guilty of Conspiracy to Distribute Marijuana.
Vocu faces up to 20 years’ imprisonment and/or a $1,000,000 fine. Little and Yellow Horse face not more than 5 years’ imprisonment and/or a $250,000 fine.
A drug conspiracy investigation began on or about October of 2008 and it resulted in federal charges against of 18 individuals: Abraham Romero; Richard Marshall; Lorenzo Camacho Tarango, a/k/a Lencho a/k/a Lecho; Reyes Chavez-Rojo; Billi American Horse; Jimmy Bravo; Elwanda Fire Thunder; Kimberly Janis; Zeno Little; Norton Little Spotted Horse; Moses Montileaux Jr.; Moses Montileaux Sr.; Whisper Montileaux; Stephanie Standing Soldier; Edward Vocu; Theresa Vocu; Cassie Winters; and Wesley Yellow Horse Sr.
During the course of the conspiracy, Romero would receive marijuana, cocaine, and methamphetamine from Chavez-Rojo and Lencho and other persons, and then the remaining above-named individuals and other persons conspired to distribute and/or distributed marijuana, cocaine, and/or methamphetamine on the Pine Ridge Indian Reservation. Prior to the guilty verdicts on August 30, 2013, the other fifteen defendants pled guilty to conspiracy to distribute a controlled substance(s).
The investigation was conducted by the Federal Bureau of Investigation, Northern Plains Safe Trails Drug Enforcement Task Force, South Dakota Division of Criminal Investigation, Bureau of Indian Affairs Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. The case was prosecuted by Assistant U.S. Attorney Ted L. McBride and Special Assistant U.S. Attorney Laura A. Shattuck.
Sentencing dates for Vocu, Little, and Yellow Horse have not been set.Three Ex-Executives of USA Dry Van Trucking Company Charged in Alleged $26 Million Fraud SchemeRead the Press Release
HOUSTON – Sergio Lagos, 44, Aurelio “Jim” Aleman, 59, and Oscar Barbosa, 50, have been arrested following the return of a six-count federal indictment charging wire fraud and conspiracy to commit wire fraud, announced United States Attorney Kenneth Magidson.
The sealed indictment, returned Aug. 27, 2013, was unsealed following the arrest of the McAllen residents today. They are expected to make their initial appearances before U.S. Magistrate Judge Dorina Ramos this morning.
Lagos was the former CEO of USA Dry Van Logistics (USADV), a cross-border trucking company that services the maquiladora industry, while Aleman and Barbosa were the former chief operations officer and former controller, respectively.
The indictment alleges that from March 2008 through the end of January 2010, Lagos, Aleman and Barbosa joined in a scheme to defraud and swindle GE Capital Corporation (GECC), a lending company that provided capital to USADV, fraudulently obtaining funds through a revolving line of credit. Lagos, Aleman and Barbosa allegedly schemed to conceal from GECC the truth about USADV’s declining operating performance and financial results. Rather than reveal USADV’s true condition, Lagos, Aleman and Barbosa allegedly misrepresented USADV’s true operating performance and financial results. According to the indictment, they misrepresenting to GECC the nature of the USADV’s accounts receivable, against which GECC was permitting USADV to borrow hundreds of thousands of dollars on a weekly basis. This caused USADV to appear to be operating more profitably that it actually was.
According to the Indictment, Lagos and Aleman entered into a financing agreement with GECC under which GECC would issue a revolving line of credit which was secured by USADV’s accounts receivables. By January 2010, the maximum borrowing limit under the agreement was increased to $38 million. Pursuant to the agreement, USADV allegedly justified advances on the line of credit by submitting “borrowing base certificates” to GECC. Lagos, Aleman and Barbosa allegedly signed, prepared and/or directed others to prepare certificates that falsely inflated the amount of the company’s accounts receivables and caused them to be submitted to GECC to enable USADV to obtain more funds than would otherwise would have been permitted. Lagos, Aleman and Barbosa allegedly perpetuated and concealed the scheme to defraud GECC by directing other employees to manually invoice millions of dollars of fraudulent receivables to inflate the borrowing base and to create false and forged invoices and support documentation for accounts receivables that did not exist. Lagos, Aleman and Barbosa also submitted false financial statements to auditors and GECC, according to the indictment.
When the truth about USADV’s operations and finances were revealed, USADV went into bankruptcy. The indictment alleges USADV successfully re-organized under Chapter 11 bankruptcy proceedings and is currently operating with new owners. Lagos, Aleman and Barbosa are no longer affiliated with or employed by the company. According to the Indictment, the amount of actual loss to GECC was more than $26 million.
Each of the six counts of the indictment carries a maximum punishment of 20 years in prison and up to a $250,000 fine.
The investigation was conducted by Homeland Security Investigations and the FBI. Assistant United States Attorneys Casey N. MacDonald and Grady J. Leupold are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
Ten Individuals Sentenced During the Month of August for Federal Supervised Release ViolationsRead 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
WHEELING, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that during the month of August, 2013, ten (10) individuals had their supervised release revoked for violating terms and conditions imposed by the United States District Court.
WHEELING DIVISION REVOCATIONS
(Judge Frederick P. Stamp, Jr.)
THOMAS MACNEILL, age 31, of Steubenville, Ohio, was sentenced to 12 months and
1 day imprisonment for possession and use of synthetic marijuana, oxycodone and morphine and failure to attend substance abuse treatment appointments. MACNEILL was originally sentenced on August 19, 2008, to 51 months imprisonment and three years of supervised release for interstate travel to promote the distribution of heroin. MACNEILL was remanded to the custody of the United States Marshal pending designation to a Federal institution.JEROME BLEDSOE, age 58, of Wheeling, was sentenced to 10 months imprisonment for testing positive for the use of cocaine on two separate occasions. BLEDSOE was originally sentenced on December 18, 2007, to 63 months imprisonment and five years of supervised release for conspiracy to distribute crack cocaine and cocaine HCL. On May 7, 2012, BLEDSOE’s supervised release was revoked and he was sentenced to 48 hours imprisonment and 4 years of supervised release for testing positive for the use of cocaine. BLEDSOE will self-report to the designated Federal institution.
KEISHA RENEE PHILLIPS, age 25, of Wheeling, was sentenced to 9 months imprisonment for possession and use of alcohol, failure to comply with her mental health and substance abuse treatment program, conviction in Ohio County for shoplifting, and a DUI arrest in Pennsylvania. PHILLIPS was originally sentenced on July 29, 2011, to two years probation for providing false statements to a Deputy United States Marshal. On August 14, 2012, PHILLIPS’ supervised release was revoked and she was sentenced to 30 days imprisonment for failure to report law enforcement contact to the probation office. PHILLIPS will self-report to the designated Federal institution.
The United States was represented at the Wheeling revocation hearings by Assistant
United States Attorneys John C. Parr and Randolph J. Bernard.CLARKSBURG DIVISION REVOCATIONS (Judge Irene M. Keeley)
DIONNE JAY LEWIS, age 43, of Fairmont, West Virginia, was sentenced to 12 months and 1 day imprisonment for unlawful use and possession of a controlled substance. LEWIS was originally sentenced on August 17, 2008, to 68 months imprisonment and three years of supervised release for possession with intent to distribute crack cocaine and distribution of crack cocaine. On October 28, 2011, LEWIS’ sentence was reduced to 56 months pursuant to the crack re-sentencing guidelines. LEWIS was remanded to the custody of the United States Marshal pending designation to a Federal institution.PETROUS NGOZI HAWKINS, 34, of Whitehall, West Virginia, was sentenced to 10 months imprisonment to be followed by 38 months of supervised release for a new arrest by the Morgantown Police Department and being charged in Monongalia County Magistrate Court with being a felon in possession of a firearm, concealing stolen property and possession of a loaded firearm in vehicle. HAWKINS was originally sentenced on March 21, 2009, to 12 months and 1 day imprisonment and 4 years of supervised release for attempted possession with intent to distribute marijuana within 1,000 feet of a protected location. HAWKINS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
TIMOTHY PAUL CONNOLLY, age 34, of Clarksburg, was sentenced to 7 months imprisonment to be followed by 29 months of supervised release for testing positive for the use of narcotics. CONNOLLY was originally sentenced on September 4, 2008, to 57 months imprisonment and 3 years of supervised release for being a convicted felon in possession of a firearm. On May 16, 2010, CONNOLLY’s sentenced was reduced to 36 months imprisonment. CONNOLLY was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the Clarksburg revocation hearings by Assistant
United States Attorneys Shawn A. Morgan and Zelda E. Wesley.MARTINSBURG DIVISION REVOCATIONS (Judge Gina M. Groh)
MELISSA KEMP, age 35, of Hedgesville, West Virginia, was sentenced to 18 months imprisonment for testing positive for the use of codeine, morphine, hydromorphone and cocaine and associating with convicted felons without her probation officer’s permission. KEMP was originally sentenced on July 6, 2011, to 10 months imprisonment and 6 years of supervised release for the distribution of heroin. On May 10, 2012, KEMP’s supervised release was revoked and she was sentenced to 12 months and 1 day imprisonment and 59 months of supervised release for providing false information to her probation officer regarding status of driver’s license and testing positive for the use of cocaine and morphine. KEMP was remanded to the custody of the United States Marshal pending designation to a Federal institution.JOHN FERGUSON, age 45, of Shenandoah Junction, West Virginia, was sentenced to
16 months imprisonment to be followed by 20 months of supervised release for a new arrest
for possession with intent to distribute crack cocaine and sexual assault 2nd degree.
FERGUSON was originally sentenced on August 16, 2010, to 37 months imprisonment and three years of supervised release for the distribution of crack cocaine. FERGUSON was remanded to the custody of the United States Marshal pending designation to a Federal institution.MELVIN WHITE, age 32, of Charles Town, West Virginia, was sentenced to 10 months imprisonment to be followed by 38 months of supervised release for failure to timely submit monthly reports to the probation office, possession of controlled substances, testing positive for the use of controlled substances, failure to be truthful with the probation officer, and failure to report to the probation office as directed. On September 11, 2012, WHITE’s supervised release was revoked and he was sentenced to 5 months imprisonment and 20 months of supervised release for failure to timely report a change of address, traveling outside the district without prior approval, and a new violation for drug possession. WHITE was remanded to the custody of the United States Marshal pending designation to a Federal institution.
OLIN GASKINS, age 36, of Capon Bridge, West Virginia, was sentenced to 7 months imprisonment to be followed by 36 months of supervised release for use of controlled substance, associating with a convicted felon without his probation officer’s permission, failure to timely notify probation officer of change of address and failure to be truthful with the probation officer. GASKINS was originally sentenced on January 29, 2007, to 70 months imprisonment and 3 years of supervised release for being a convicted felon in possession of a firearm. GASKINS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the Martinsburg revocation hearings by Assistant
United States Attorney Paul T. Camilletti.The United States Probation Office carries out probation and pretrial services functions throughout the Northern District of West Virginia. With locations in Wheeling, Clarksburg, Martinsburg, and Elkins, the office works to assist the federal courts in the fair administration of justice, to protect the community, and to bring about long-term positive change in individuals under supervision. Jeff Givens is the Chief Probation Officer for the Northern District.
St. Francis Man Charged with Eight Counts of Sexual Abuse and Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury on a Superseding Indictment for one count of Aggravated Sexual Abuse of a Child, six counts of Aggravated Sexual Contact with a Child, and one count of Abusive Sexual Contact.
Vernon Blackhorse, age 63, appeared before U.S. Magistrate Judge Mark A. Moreno on August 28, 2013, and pled not guilty to the superseding indictment.
The maximum penalty upon conviction is up to life in prison, a $250,000 fine, or both; up to life of supervised release; and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to allegations that between May 2001 and November 2007 Blackhorse assaulted four different female victims in St. Francis and Eagle Butte.
The charges are merely an accusation and Blackhorse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Blackhorse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for October 22, 2013.Southington Man Involved in Illegal Campaign Contribution Scheme Sentenced to 21 Months in PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that BENJAMIN HOGAN, 34, of Southington was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 21 months of imprisonment, followed by one year of supervised release, for participating in a scheme to direct illegal contributions into the campaign of a candidate for the U.S. House of Representatives. HOGAN also was ordered to pay a $5,000 fine.
According to court documents and statements made in court, in August 2011, the State of Connecticut applied for a court order enjoining Roll Your Own (“RYO”) smoke shops from continuing to operate without complying with state law governing tobacco manufacturers. RYO smoke shops are retail businesses that sell loose smoking tobacco and cigarette-rolling materials and offer customers the option of paying a “rental” fee to insert the loose tobacco and the rolling materials into a RYO machine, which is capable of rapidly rolling large quantities of cigarettes. Customers did not pay a tax on the RYO cigarettes when rolled by the RYO machines, in contrast to cigarettes purchased over-the-counter. HOGAN was an employee and part-owner of Smoke House Tobacco, a RYO smoke shop with two locations in Waterbury.
Fearing that the Connecticut General Assembly would enact legislation harmful to RYO smoke shop owners’ business interests during the 2012 legislative session, HOGAN and others engaged in a scheme to direct conduit campaign contributions into the campaign of Christopher Donovan, a candidate for the U.S. House of Representatives. At the time, Donovan was also the Speaker of the Connecticut House of Representatives. As part of the scheme, the co-conspirators recruited multiple individuals to serve as conduit contributors to the campaign. These individuals permitted checks to be written in their own names to the campaign, and HOGAN and other conspirators reimbursed them with cash, thereby concealing the fact that RYO smoke shop owners were contributing to the campaign.
In November and December 2011, participants in the scheme made four $2,500 conduit contributions to the Chris Donovan for Congress campaign. HOGAN was aware of the purpose of the contributions and that the contributions were being made in the names of others.
On approximately January 31, 2012, the Chris Donovan for Congress campaign submitted to the Federal Election Commission (“FEC”) a report of campaign committee’s receipts and disbursements for the period October 1, 2011 through December 31, 2011. The report falsely stated the source and amount of the four $2,500 contributions that were received and deposited by the campaign committee during that time period.
On May 14, 2012, HOGAN, Harry “Ray” Soucy and Paul Rogers met at Smoke House Tobacco where Soucy provided Rogers with $10,000 in cash to be used to reimburse additional conduit contributors. Prior to the meeting, HOGAN had approached Waterbury business owner Daniel Monteiro and an employee of Monteiro’s and asked them to serve as conduit contributors. Monteiro subsequently wrote a $2,500 check to the Donovan for Congress campaign, and his employee obtained a bank check in the amount of $2,500. Both were assured that they would be reimbursed. These two checks, and another $2,500 bank check drawn on HOGAN’s own account but not in his name, were given to Soucy at the meeting. Rogers also gave Soucy a fourth $2,500 check from a conduit contributor that was payable to a political party. Soucy then delivered the four checks to Donovan for Congress campaign manager Joshua Nassi.
On April 12, 2013, HOGAN pleaded guilty to one count of conspiracy to make false statements to the Federal Election Commission and to impede the FEC’s enforcement of federal campaign finance laws.
Rogers, Soucy, Monteiro, Nassi and three others have also been convicted of charges stemming from this scheme.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Eric J. Glover.
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(203) 821-3722 [email protected]Seaside Partner in Monterey Investment Company Convicted of Defrauding Investors Out of Millions of DollarsRead the Press Release
SAN JOSE - A federal jury in San Jose convicted Michael Swanson, of Seaside, Calif., yesterday with mail fraud, wire fraud, securities fraud, and conspiracy to commit mail and wire fraud, United States Attorney Melinda Haag announced.
According to the evidence at trial, Swanson, 62, was a partner in the management of an investment company called APS Funding, Inc. (“APS”). APS engaged in the business of offering short-term, high-interest loans, also known as “hard money lending,” for business and real estate development purposes. The three APS partners, including Swanson, established several investment funds under the APS umbrella, including GCF Investment, L.L.C. and the Greenlight Fund. The partners recruited investors to purchase shares in these funds and assured investors that their investments would be used to fund the loans. According to the evidence at trial, however, the partners attracted few borrowers and made few hard money loans with the invested funds, but instead diverted investor money to pay for the partners’ personal expenses. From 2007 to 2009 APS received more than $5 million from investors, over 90% of which was diverted to the partners for their personal use.
Swanson was convicted of one count of Conspiracy to Commit Mail and Wire Fraud in violation of Title 18, United States Code, Section 1349, twelve counts of Mail Fraud, in violation of Title 18, United States Code, Section 1341, fourteen counts of Wire Fraud, in violation of Title 18, United States Code, Section 1343, and one count of Securities Fraud, in violation of Title 15, United States Code, Sections 78j(b) and 78ff, and Title 17, Code of Federal Regulations, Sections 240.10b-5 and 240.10b5-2. Swanson was acquitted of one count of mail fraud and one count of securities fraud. He is scheduled to be sentenced on December 18, 2013, before the Honorable Lucy H. Koh, U.S. District Judge. Beth Pina, one of Swanson’s partners, pleaded guilty on December 17, 2012, and is scheduled to be sentenced on March 14, 2014.
The maximum penalty for each count of Conspiracy to Commit Mail and Wire Fraud in violation of Title 18, United States Code, Section 1349, and for the substantive Mail and Wire Fraud counts, is 20 years imprisonment and a fine of $250,000 fine, or twice the gross gain or gross loss from the offense, plus restitution. The maximum penalty for each count of Securities Fraud in violation of Title 15, United States Code, Sections 78j(b) and 78ff, and Title 17, Code of Federal Regulations, Sections 240.10b-5 and 240.10b5-2, is 20 years imprisonment and a fine of $5,000,000 fine, plus restitution. 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.
Jeff Schenk and Amber Rosen are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Nina Burney. The prosecution is the result of an investigation by the Federal Bureau of Investigation, Securities and Exchange Commission, and the Monterey County District Attorney’s Office.
Sanford Missionary Pleads Guilty to Producing Child PornographyRead the Press Release
Orlando, FL - Acting United States Attorney A. Lee Bentley, III announces that Warren Scott Kennell (45, West Milford, New Jersey) today pleaded guilty to two counts of production of child pornography. Kennell faces a mandatory minimum penalty of 15 years, up to a maximum of 30 years in federal prison.
According to court documents, between December 2008 and August 2011, Kennell produced images of child pornography involving two minor victims. According to the plea agreement, on May 31, 2013, Kennell arrived at Orlando International Airport from Panama City, Panama. After retrieving his luggage, Kennell was escorted to the United States Customs and Border Protection (CBP) secondary inspection area.After Kennell was seated, a special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) searched Kennell's belongings and found three thumb drives and one external hard drive. During an interview, Kennell said that he had worked in Brazil as a missionary for the New Tribes Mission, in Sanford, Florida, and that he had been doing missionary work for several years. Kennell told the agent that he had never touched a child in a sexual and/or inappropriate manner, that he had never taken pornographic images of a child, and that there would be no child pornography found on any of the items in his luggage.
After Kennell made these statements, Florida Department of Law Enforcement (FDLE) computer forensic agents advised that two images of child pornography had been found on Kennell's external hard drive.
When shown the first image, Kennell acknowledged that he was the man in the picture performing a sex act on the prepubescent female. Kennell said that he believed the girl was about 12 years old at the time the picture was taken. When shown the second image, Kennell admitted that he had taken that picture and that the girl in the second image also had been about 12 years old at the time. Kennell further admitted that both images had been taken in Brazil while he was on the missionary assignment.
A forensic examination of Kennell’s external hard drive showed more than 940 images of child pornography. The child victims are members of an indigenous tribe in the Amazon, where Kennell was setting up a church.
This case was investigated by HSI, with assistance from FDLE. It is being prosecuted by Assistant United States Attorney Tanya Davis Wilson.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Rutland Woman Imprisoned 15 Months for Drug TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that today, Annette Rider, 45, of Rutland, was sentenced to 15 months imprisonment on her guilty plea to conspiracy to distribute heroin and crack cocaine. United States District Judge J. Garvan Murtha also ordered Rider to serve three years supervised release after her incarceration ends.
According to court records, Rider conspired with Darlene Palmer, 45, of Rutland, and others to distribute heroin and crack cocaine in Rutland during spring 2011. During that period the Vermont Drug Task Force (VDTF) made several controlled purchases of heroin and crack from Rider and Palmer. On August 1, 2012, a grand jury returned an indictment charging the two with conspiracy and several distribution counts. Rider and Palmer were arrested by the VDTF and the Drug Enforcement Administration (DEA) on September 20, 2012. Initially released on conditions, Rider has been detained since March 20, 2013, as a result of violating her conditions. Palmer was sentenced to 20 months imprisonment and three years supervised release on June 24, 2013.
United States Attorney Tristram J. Coffin commended the VDTF and DEA for their joint investigation. Burlington attorney Brooks McArthur represented Rider. The case was prosecuted by Assistant U.S. Attorney Craig Nolan.
Roommates Sentenced to Federal Prison for Possessing Child PornographyRead the Press Release
DALLAS — Franklin Bratcher, 44, of Dallas, was sentenced today by U.S. District Judge Ed Kinkeade to 66 months in federal prison, following his guilty plea in February 2013 to one count of possession of child pornography. Bratcher’s roommate, Howard Tyson, 45, was sentenced in June 2013 to the statutory maximum of 10 years in federal prison, following his guilty plea in March 2013 to the same offense. Both men have been in federal custody since they entered their guilty pleas. 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, Bratcher and Tyson each used peer-to-peer file-sharing to download child pornography from the internet onto their computers. When agents with the U.S. Secret Service executed a federal search warrant at their residence on July 26, 2011, both Bratcher and Tyson admitted that they had been downloading child pornography for at least one year. Tyson admitted that he downloaded most of the child pornography onto his wife’s laptop computer. A forensic examination of Tyson’s computer and his wife’s computer revealed that the hard drives contained more than 8000 images and 20 videos of child pornography. A forensic analysis of Bratcher’s hard drive revealed more than 200 images and nine videos of child pornography. Both Bratcher and Tyson acknowledged that some of the images were sadistic and that the images and videos were of real prepubescent and pubescent minors.
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 U.S. Secret Service and the Plano Police Department. Assistant U.S. Attorney Camille Sparks prosecuted.
Rapid City Man Charged with Aggravated Sexual Abuse of A Child and Abusive Sexual Contact with A ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child and Abusive Sexual Contact with a Child.
Daniel Briggs, age 28, was indicted on June 12, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 3, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of 30 years in custody up to life in custody and/or a $250,000 fine, up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stem from an alleged incident that happened on or between December 4, 2010, and December 5, 2010, where Briggs sexually abused a child under the age of 12 in Eagle Butte. The charges are merely an accusation and Briggs is presumed innocent until and unless proven guilty.The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Briggs was remanded to the custody of the U.S. Marshals Service. A trial has been set for October 22, 2013.