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Wednesday 17 July 2013
Colleyville, Texas, Father and Son, Who Were Convicted on Tax and Tax-Related Charges, Receive Lengthy Federal Prison Sentences and Are Ordered to Pay Large FinesRead the Press Release
Larry Lake Was Part-Owner of Grapevine Drug Mart - Son Travis Lake Managed the Business
FORT WORTH, Texas — Larry Lake and his son, Travis Lake, were sentenced today in U.S. District Court in Fort Worth, Texas, by U.S. District Judge John McBryde, to 168 months and 13 months in federal prison, respectively, following their convictions earlier this year on tax and tax-related charges. In addition, Judge McBryde ordered that Larry Lake pay a $550,000 fine as well as any taxes, interest and penalties owed, which will equal approximately $25 million. Judge McBryde ordered that Travis Lake pay a $30,000 fine; he has already paid $26,816 in restitution prior to sentencing. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Larry Lake was convicted at trial in February 2013 on one count of concealment of assets (bankruptcy fraud) and three counts of tax evasion. He was remanded into custody following the conviction. Travis Lake pleaded guilty in February 2013 to an indictment charging three counts of fraud and false statements in connection with tax returns he filed for tax years 2006, 2007 and 2008. He was remanded into custody after today’s sentencing hearing.
According to the public court record, Larry Lake is a resident of Colleyville, Texas, and owns and operates several businesses including VIP Finance of Texas, an auto title loan business with branches throughout the Dallas-Fort Worth area; Cash Auto Sales, which handles the auto club memberships for VIP Finance; and is a part owner of Grapevine Drug Mart, a family-owned and operated pharmacy in Grapevine, Texas.
According to the factual resume filed in his case, Travis Lake manages Grapevine Drug Mart, and according to an order setting conditions for his release, Travis Lake is also a resident of Colleyville.
According to evidence presented at Larry Lake’s trial, the day before he filed for bankruptcy in November 2004, Larry Lake knowingly and fraudulently transferred and concealed more than $3 million held in an E*TRADE account and a Compass Bank account. The funds were subsequently transferred by Larry Lake through a series of bank deposits, wire transfers and cashier’s checks. In addition, Larry Lake utilized a “shell” company to assist in concealing the assets.
Additionally, according to evidence presented at trial, Larry Lake devised a scheme to evade the assessment of his personal income taxes by under-reporting income on his and his spouse’s joint tax returns for the tax years 2006 through 2008. The unreported income was derived from his businesses, VIP Finance and Grapevine Drug Mart.
Further evidence presented by the government at trial showed that from August 2006 through November 2009, Larry Lake and his spouse agreed to structure more than 1,100 currency deposits, into at least 13 different bank accounts, knowing that structuring was illegal. These accounts were spread among several financial institutions, and the total amount structured during this time period was in excess of $9.3 million. Larry Lake and his spouse created at least two “shell” companies, which were used to open some of the 13 bank accounts used in the structuring scheme.
Larry Lake, according to evidence presented at trial, failed to disclose the structured funds, and the existence of the accounts containing the structured funds, to his income tax return preparer. In addition, Larry Lake failed to report income he received from Grapevine Drug Mart, having told his return preparer that he sold the business during the 2003 calendar year. By willfully withholding this information from his return preparer, the IRS suffered a total tax loss of $4,838,032.
According to the factual resume filed in Travis Lake’s case, from 2006 through 2008, he received quarterly and weekly payments of income drawn on Grapevine Drug Mart’s business bank accounts. The quarterly payments were generally received three to five times per year and varied in amounts ranging from $25,000 to $100,000. Each quarterly payment was made payable to Certified Tech Services, a dba that Travis Lake established, and deposited into Certified Tech Services’ business bank account. The weekly payments, in the form of checks, were much smaller and were made payable to Travis Lake or his wife, and deposited into personal accounts Travis Lake controlled. The factual resume further states that Travis Lake timely filed his federal income tax returns for 2006, 2007 and 2008, but willfully omitted income of approximately $77,070 for 2006; $82,540 for 2007; and $54,000 for 2008, all of which he received from Grapevine Drug Mart.
In related cases, two pharmacists at Grapevine Drug Mart, have also pleaded guilty to tax evasion, according to factual resumes filed in those cases. Norvell Moss admitted that he failed to report approximately $194,150 in income he received from Grapevine Drug Mart for tax year 2008, and as a result of not reporting all of his income, Norvell Moss had an additional tax due and owing of $58,233 for that year. He was sentenced in May 2013 to 18 months in federal prison and ordered to pay $8,277 in restitution as well as a $30,000 fine.
Another pharmacist, Joseph Moss, admitted that he failed to report approximately $159,450 in income he received from Grapevine Drug Mart for tax year 2008, and as a result of not reporting all of his income, he had an additional tax due and owing of $58,554 for that year. He was sentenced last month to 12 months and one day in federal prison and ordered to pay $51,150 in restitution and a $3,000 fine.
The cases were investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Brian Poe and Tax Division Trial Attorney Robert A. Kemins were in charge of the prosecutions.
Cleveland Heights Man Sentenced to Nearly 17 Years in Prison for Drug CrimeRead the Press Release
A Cleveland Heights man was sentenced to nearly 17 years in prison for drug crimes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Donte Booker, age 45, was found guilty earlier this of one count of attempted possession of five or more kilograms of cocaine.
U.S. District Judge James S. Gwin sentenced Booker to 16 years and eight months in prison.
Booker met with a confidential source in October 2012 in Cleveland to discuss a potential identity theft scheme. Booker also told the source that he was a home invader and had heard the source knew drug dealers in the area that he could rob of large amounts of drugs and/or money, according to court documents.
Over the next two months, Booker planned a robbery of 10 kilo grams of powder cocaine with individuals he believed were drug couriers, but who were in fact law enforcement. Booker repeatedly and explicitly expressed a willingness to use deadly force to effect the robbery. Law enforcement officials therefore decided the original scenario would be too dangerous and instead adopted Booker’s suggestion to conduct the robbery in a hotel parking lot, according to court documents.
Booker repeatedly stated that he would have no problem selling 10 kilograms of cocaine. On Jan. 8, 2013, Booker learned that a bag he believed contained 10 kilograms of powder cocaine was located inside a vehicle parked at the La Quinta Hotel on West 150th Street in Cleveland. Booker arrived at the parking lot, awaited the signal and stole the sham cocaine and was eventually arrested, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys Edward F. Feran and Adam Hollingworth following an investigation by the Northern Ohio Law Enforcement Task Force (NOLETF) and the Cleveland Police Department.
The NOLETF is a long standing multi-agency task force comprised of investigators from the Federal Bureau of Investigation, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Homeland Security Investigations, U.S. Coast Guard Investigative Service, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Strongsville Police Department, Westlake Police Department and Shaker Heights Police Department.
Citizen of Dominican Republic Found with $369k in Drug Money Is SentencedRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOVANNY ARSENIO ROSARIO, 46, a citizen of the Dominican Republic, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 33 months of imprisonment for illegally reentering the United States after being deported.
According to court documents and statements made in court, ARSENIO ROSARIO, who had previously been deported from the U.S. after a conviction for committing an aggravated felony, was found in the U.S. on September 5, 2012. On that date, Connecticut State Troopers conducted a traffic stop in Tolland and found ARSENIO ROSARIO with two other individuals in a car that also contained 28 bundles of U.S. currency, totaling $369,346. ROSARIO subsequently stated that the money was related to drug trafficking activity.
ARSENIO ROSARIO has been detained since September 5, 2012. On December 19, 2012, he pleaded guilty to one count of illegal reentry after being removed from the United States subsequent to a conviction for commission of an aggravated felony.
This case was investigated by Homeland Security Investigations and the Connecticut State Police. The case was prosecuted by Special Assistant United States Attorney Anjna R. Kapoor and Assistant United States Attorney Paul H. McConnell.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Canistota Woman Charged with Making and Subscribing False Tax ReturnsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Canistota, South Dakota, woman has been indicted by a federal grand jury for making and subscribing false tax returns.
Veronica Fairchild, age 41, was indicted by a federal grand jury on July 9, 2013. She appeared before U.S. Magistrate Judge John E. Simko on July 16, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is up to 3 years in custody, a $250,000 fine, or both; 1 year of supervised release and an additional year upon revocation; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Fairchild is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Internal Revenue Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Fairchild was released pending trial. A trial date has not been set.California Businessman Pleads Guilty to Concealing Foreign Bank Account at Israeli Bank on His Tax ReturnRead the Press Release
CALIFORNIA BUSINESSMAN PLEADS GUILTY TO CONCEALING FOREIGN BANK ACCOUNT AT ISRAELI BANK ON HIS TAX RETURN
Saratoga Resident is the Latest in a Series of Defendants Charged With Concealing Bank Accounts at Israeli Banks
Assistant Attorney General for the Tax Division Kathryn Keneally and U.S. Attorney Melinda Haag for the Northern District of California announced that Moshe Handelsman of Saratoga, Calif., pleaded guilty today to filing a false tax return for tax year 2007.
According to the plea agreement, between approximately 1993 and 2000, Handelsman, a U.S. citizen, used three bank accounts held in the names of two different foreign corporations at foreign banks to falsely reduce his taxes. The last of those accounts was held at an Israeli bank located in Tel-Aviv, Israel. The foreign bank accounts and foreign corporations were set up with the assistance of his tax return preparers.
According to court documents, in approximately 2000, Handelsman traveled to Israel and met with a banker at the Israeli bank who referred him to an Israeli attorney to set up a foreign corporation. The foreign corporation was called Exportus Ltd. and was the named account holder of the account at the Israeli bank. From 2003 through 2008, Handelsman sent $1,808,075 from a domestic corporation he controlled called Advanced Forecasting Corp. to the Exportus Ltd. bank account. With the assistance of his tax return preparers, the funds transferred offshore were then deducted as false “Information Acquisition” expenses on the Advanced Forecasting Corp.’s tax returns. The false business expenses on the corporate tax returns resulted in an under-reporting of Handelsman’s income on his individual income tax returns for 2003 through 2008. Handelsman also failed to disclose the existence of his foreign bank account on his individual income tax returns. According to the plea agreement, in 2009, Handelsman closed his account at the Israeli bank and repatriated the money by transferring the funds into a second Israeli bank account and then to a U.S.-based Charles Schwab account in the name of a relative. The funds were then transferred from the Charles Schwab account to Handelsman to make it appear that the funds were a non-taxable gift from the relative.
U.S. citizens and residents who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III, of their individual income tax returns. Additionally, U.S. citizens and residents must file a Report of Foreign Bank and Financial Reports (FBAR) with the U.S. Treasury disclosing any financial account in a foreign country with assets in excess of $10,000 in which they have a financial interest, or over which they have signature or other authority.
Handelsman faces a potential maximum prison term of three years and a maximum fine of $250,000. In addition, Handelsman has agreed to pay a civil penalty to the Internal Revenue Service (IRS) in the amount of 50 percent of the high balance of his undeclared accounts for failing to file FBARs. His sentencing is scheduled for Nov. 6, 2013.
Assistant Attorney General Keneally and U.S. Attorney Melinda Haag thanked special agents of IRS-Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Ellen M. Quattrucci and Christopher S. Strauss, who prosecuted the case, and Assistant U.S. Attorneys Thomas Moore and Thomas Newman of the U.S. Attorney’s Office for the Northern District of California, who assisted with the prosecution.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Buffalo Woman Pleads Guilty to Money Laundering ChargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Danielle Barton, 31, of Buffalo, N.Y., pleaded guilty before U.S. Magistrate Judge Leslie G. Foschio to money laundering conspiracy. The charge carries a maximum penalty of 20 years in prison, a $500,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that between June 2008 through July 2010, Barton conspired with others to deposit the proceeds from the drug trafficking activities of Will Johnson and others into her bank account. The defendant deposited the cash to conceal and disguise the source and ownership of those funds.
Barton was arrested along with 22 others. A total of 18 defendants have been convicted. Will Johnson pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, kilograms of cocaine, and money laundering conspiracy. He will be sentenced on July 29, 2013.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent- in-Charge Toni M. Weirauch, and the Niagara County Drug Enforcement Task Force, under the direction of Sheriff James Votour.
Brooklyn Center Man Indicted for Conspiring to Distribute MethamphetamineRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 28-year-old Brooklyn Center man was indicted for conspiring to and distributing methamphetamine. Ricardo Lamar Rodrigues was charged with one count of conspiracy to distribute methamphetamine, one count of attempted possession with intent to distribute methamphetamine, one count of distribution of methamphetamine, one count of possession with intent to distribute methamphetamine, one count of using, carrying and possessing firearms during and in relation to a drug-trafficking crime, and one count of being a felon in possession of firearms.
The indictment alleges that from the summer of 2011 through June 17, 2013, Rodrigues conspired with others to distribute 50 or more grams of methamphetamine, and that on February 27, 2013, Rodrigues attempted to possess with intent to distribute 50 or more grams of methamphetamine. It also alleges that on June 17, 2013, Rodrigues distributed five or more grams of methamphetamine, and possessed with intent to distribute 50 or more grams of methamphetamine while possessing a nine-millimeter, semi-automatic pistol and a Glock .45-caliber pistol. Because he is a felon, Rodrigues is prohibited under federal law from possessing a firearm at any time. Rodrigues was previously convicted in Arizona for possession of drug paraphernalia (2012).According to a law enforcement affidavit filed in the case, authorities began investigating Rodrigues in May 2013. While under surveillance on June 17, officers observed Rodrigues making a suspected drug transaction. He was stopped shortly afterward, and officers seized several Hydrocodone pills and a plastic baggie with suspected drug residue. Earlier, authorities conducted an arranged controlled purchase of methamphetamine at Rodrigues’s residence.
During the execution of a search warrant of Rodrigues’s residence, officers found a large digital scale, a loaded nine-millimeter pistol, and approximately 562.5 grams of methamphetamine inside a safe. The Glock handgun was found in Rodrigues’s bedroom, and a .22-caliber revolver was found hidden inside a cinder block on the back deck. An additional 66.5 grams of methamphetamine was found inside the passenger door of a Ford F-150.
If convicted, Rodrigues faces a potential maximum penalty of life in prison on the conspiracy, the possession and attempted possession counts; 40 years on the distribution count; ten years on the felon in possession count; and a consecutive five-year sentence on the possessing firearms in relation to drug-trafficking count. Any sentence will be determined by a federal district court judge.
This case is the result of an investigation by the United States Drug Enforcement Administration and the Bloomington Police Department, with cooperation from the Brooklyn Center Police Department and the Anoka-Hennepin Drug Task Force. It is being prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.
To learn more about the harmful effects of methamphetamine, visit http://www.justice.gov/dea/pr/multimedia-library/publications/drug_of_abuse.pdf#page=48.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Brookings Man Pleads Guilty to Unlawful Taking of Migratory Birds and Lacey Act ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that Chris Paclik, age 21, of Brookings, South Dakota, appeared before U.S. Magistrate Judge John E. Simko on July 15, 2013, and pled guilty to Count IV of the Information that charged him with Unlawful Taking of Migratory Birds and Lacey Act Violations.
The maximum penalty upon conviction is 1 year of imprisonment, a $100,000 fine, or both; 1 year of supervised release, an additional year of supervised release upon revocation; and a $25 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stem from an incident wherein Paclik, along with a group of friends known as “Team Those Guys” hunted between November 24, 2012, and November 29, 2012, in Miner County, South Dakota. Paclik illegally killed 54 geese using an electronic device. Paclik admitted he knew it was illegal to use said device while goose hunting during this time of the year. After killing the geese, Paclik transported 11 of them from the field to his home in Brookings, in violation of federal law.
The investigation was conducted by the U.S. Fish & Wildlife Service. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Paclik was released on bond pending sentencing which has been set for August 19, 2013.Bay Shore Doctor Sentenced to 65 Months in Prison for Pension- Fund Looting, Health Care Fraud, and Tax EvasionRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, Frank Lobacz, a Bayshore, New York, doctor convicted of health care fraud, tax evasion, and the looting of an employee pension fund, was sentenced to 65 months in prison by United States District Judge Dennis R. Hurley. Judge Hurley also imposed fines, restitution, and penalties on Lobacz of over $3.5 million.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and Toni Weirauch, Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”).
On November 13, 2010, after a month-long trial, a jury convicted Lobacz on all six counts of an indictment charging health care fraud, the filing of false pension fund reports with the U.S. Department of Labor, and tax evasion during the years 2001 to 2003. In addition to his prison sentence, the district court today ordered Lobacz to pay $727,480.63 in restitution to two private insurance plans, as well as $2,886,454.60 in federal income tax.
Lobacz was a licensed New York Doctor of Osteopathic Medicine, or D.O., who maintained offices in Nassau and Suffolk counties. In the 1970’s, he created a retirement pension plan for himself and his staff, and named himself as the plan administrator in filings with the United States Department of Labor. As the administrator, Lobacz was responsible for filing annual reports on the financial health of the plan and was required to notify the IRS if he or any one else borrowed or withdrew money from the plan.
At trial, witnesses testified that in addition to running his medical practice, Lobacz engaged in highly complex and risky stock options trading. Between 2000 and 2002, he transferred over $3.5 million in money and stocks to and from the pension plan and his personal brokerage account to pay for personal expenses, including vacation home improvements, artwork, credit card debt, a home equity loan, and college tuition for a daughter. The defendant never reported this misuse of employee pension funds, and between 2000 and 2003, he failed to report over $1 million in options trading income to the IRS.
Evidence at trial also showed that starting in 2005, to compensate for trading losses, the defendant filed some 1,500 false insurance claims for medical services and procedures purportedly rendered to a retired couple, who were close friends of the defendant, as well as to Lobacz’s younger children, his wife, and himself. The couple testified at trial that although they received routine acupuncture treatments from the defendant, which would not have been covered under their insurance plans, the bulk of the bills submitted in their names were for services that they either did not receive, or for visits on dates when the couple was traveling outside of New York State. Other fraudulent bills claimed that the defendant, his wife, and two children received near daily treatments normally provided to those suffering severe respiratory conditions, among other ailments. However, public school records, as well as patient files from Lobacz’s offices, showed that no such treatments or visits actually occurred. In all, the defendant billed $727,480.62 in false health care claims to GHI and United Healthcare Insurance Company of New York.
Following imposition of the sentence, United States Attorney Lynch stated, “The defendant Lobacz had a medical practice and investment portfolio which generated significant income, but that was not enough for him. Abandoning his fiduciary obligations to his staff, he looted their pension plan to cover his own personal expenses. Continuing his pattern of using other people, the defendant used friends’ and family members’ personal information to defraud private insurance companies. Further, Lobacz also failed to pay taxes on very substantial income. He will now be held to account for these crimes.”
Ms. Lynch expressed her grateful appreciation to the IRS for its investigation and participation in this case.
The government’s case is being prosecuted by Assistant United States Attorney Michael P. Canty and James M. Miskiewicz.
The Defendant:
FRANK LOBACZ
Age: 68Baltimore Cocaine Dealer Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Terence Orlando Delly, age 36, of Reisterstown, Maryland, late yesterday to 10 years in prison followed by five years of supervised release for conspiracy to possess with intent to distribute more than five kilograms of cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to court documents and information presented at Delly=s sentencing hearing, on September 15, 2011, members of the Texas Highway Patrol stopped a silver Lexus, which was registered in Maryland and had been rented in Baltimore, for a traffic violation. A K-9 scan of the vehicle resulted in an alert for the presence of narcotics and 9.5 kilograms of cocaine was subsequently recovered during a search of the vehicle.
Further investigation determined that the operator of the vehicle had driven from Baltimore, to Houston, Texas, in order to be supplied cocaine from Andre Wiley, which law enforcement learned was scheduled to be delivered to Delly in Baltimore County, Maryland. The driver of the Lexus, had made multiple trips from Baltimore to Houston prior to September 15, 2011, in order to be supplied cocaine by Wiley for ultimate delivery to Delly.
The quantity of cocaine reasonably foreseeable to Delly is between 15 kilograms and 50 kilograms of cocaine.
Andre Wiley, of Houston, Texas, pleaded guilty to the same charge and was sentenced to10 years in prison.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department and the Texas Highway Patrol for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Christopher Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Baltimore Cocaine Dealer Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Terence Orlando Delly, age 36, of Reisterstown, Maryland, late yesterday to 10 years in prison followed by five years of supervised release for conspiracy to possess with intent to distribute more than five kilograms of cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to court documents and information presented at Delly=s sentencing hearing, on September 15, 2011, members of the Texas Highway Patrol stopped a silver Lexus, which was registered in Maryland and had been rented in Baltimore, for a traffic violation. A K-9 scan of the vehicle resulted in an alert for the presence of narcotics and 9.5 kilograms of cocaine was subsequently recovered during a search of the vehicle.
Further investigation determined that the operator of the vehicle had driven from Baltimore, to Houston, Texas, in order to be supplied cocaine from Andre Wiley, which law enforcement learned was scheduled to be delivered to Delly in Baltimore County, Maryland. The driver of the Lexus, had made multiple trips from Baltimore to Houston prior to September 15, 2011, in order to be supplied cocaine by Wiley for ultimate delivery to Delly.
The quantity of cocaine reasonably foreseeable to Delly is between 15 kilograms and 50 kilograms of cocaine.
Andre Wiley, of Houston, Texas, pleaded guilty to the same charge and was sentenced to10 years in prison.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department and the Texas Highway Patrol for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Christopher Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Baker County Man Indicted on Federal Charge of Failure to Register as Sex OffenderRead the Press Release
Jacksonville, Florida - Acting United States Attorney A. Lee Bentley, III announced today the return of an indictment charging Ray Charles Gasaway (47, Glen St. Mary) with failing to register as sex offender in the state of Florida, after traveling from the state of Tennessee. Gasaway faces up to 10 years in federal prison and a $250,000 fine. An arraignment and detention hearing are scheduled for July 17, 2013, at 11:15 a.m. before United States Magistrate Judge Thomas E. Morris in Jacksonville.
According to the indictment, on March 12, 1996, Gasaway was convicted of committing sexual battery and rape in Davidson County, Tennessee. Subsequent to his conviction, between June 14, 2012, and May 1, 2013, Gasaway traveled from Tennessee to Florida, where he has since resided. Gasaway allegedly failed to register as a sex offender as required by the Sex Offender Registration and Notification Act.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the U.S. Marshals Service, to assist the states in locating and apprehending non-compliant sex offenders. This case was investigated by the Baker County Sheriff’s Office, the United States Marshals Service, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
Angela Corson Smith Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on July 17, 2013, before U.S. District Judge Sam E. Haddon, ANGELA CORSON SMITH, a 32-year-old resident of Billings, pled guilty to bank fraud. Sentencing has been set for October 28, 2013. She is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
On October 23, 2009, SMITH submitted an application for a home equity loan to Altana Federal Credit Union. Altana Federal Credit Union is federally insured and was at the time of the conduct. In support of the home equity loan SMITH presented a power of attorney purporting to give her authority to sign for her husband, B.S. The power of attorney contained a forged signature of B.S. as well as his father who was listed as a witness to the document. The document was notarized by Angela Corson, SMITH's maiden name. The bank would not have authorized the home equity loan with B.S.'s consent so the forged power of attorney was material to the decision of the bank. In addition to forging the power of attorney, SMITH also forged all of the loan documents for the bank, some of which were not signed until May of 2010.
SMITH faces possible penalties of 30 years in prison, a $1,000,000 fine, and 5 years supervised release.
The investigation was conducted by the U.S. Secret Service.
16 People Charged in Drug Conspiracy, Accused of Distributing Heroin and Other Drugs in AreaAnother Person, A Police Officer, Has Been Indicted in A Related Case,Accused of Tampering with InvestigationRead the Press Release
WASHINGTON –Seventeen people, including a Prince George’s County, Md., police officer, have been indicted on federal charges in connection with an ongoing investigation by the FBI/Metropolitan Police Department Safe Streets Task Force into a network that distributed heroin, cocaine, marijuana, and prescription pills in the Washington, D.C. area.
The charges were announced today by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
The defendants, most of whom were arrested this week, are named in a pair of indictments returned on July 11, 2013, in the U.S. District Court for the District of Columbia. The indictments were unsealed today.
One indictment charges 16 defendants – 14 men and two women - with conspiracy to distribute and possess with intent to distribute heroin, cocaine, PCP, marijuana, and methamphetamines. The indictment against these defendants also includes a forfeiture allegation seeking all proceeds derived from the crimes, as well as assets used to commit the offenses.
The police officer, Vanessa Edwards-Hamm, 38, is named in the second indictment. She was charged with one count of tampering with documents or proceedings and one count of unlawful notice of electronic surveillance. According to the indictment, she alerted another person or persons of electronic surveillance in an effort to obstruct, impede and prevent the investigation. Hamm was arrested Monday and appeared in court later that afternoon. She was released on personal recognizance pending further court proceedings.
The drug conspiracy charge carries a statutory minimum of five years in prison and a maximum of 40 years of incarceration. Edwards-Hamm faces a statutory maximum of 20 years in prison on the charge of tampering with documents and proceedings and up to five years on the charge of providing unlawful notice of electronic surveillance.
The drug conspiracy indictment alleges that the 16 defendants conspired to carry out the drug operation from December 2011 through July of this year, when it was broken up by law enforcement. According to the government’s evidence, the drugs were distributed in the Potomac Gardens and Hopkins housing complexes in Southeast Washington, as well as in Prince George’s County, Md., and locations in northern Virginia.
“In this case, a police officer sworn to uphold the law is accused of undermining law enforcement by revealing covert electronic surveillance,” said U.S. Attorney Machen. “That officer has been charged along with a far-reaching criminal network that distributed heroin, cocaine, and PCP through the D.C. area. This prosecution demonstrates our commitment to holding accountable drug dealers and the people who enable their illicit activities."
“With this week’s arrests, drug dealers who enjoyed a rich network to ply their trade within Washington, D.C., and Northern Virginia have been removed from our neighborhoods and taken into custody,” said Assistant Director in Charge Parlave. “Along with our law enforcement partners and through the Safe Streets Task Force, the FBI is focused on stopping the movement and sale of drugs on our streets and bringing those who profit from it to justice.”“This community has been plagued with drugs and violence for quite some time,” said Police Chief Lanier. “The Metropolitan Police Department and our federal law enforcement partners have made significant strides to make our communities safer. This case is an example of our dedication to remove illicit drugs and criminals from our neighborhoods.”
The Prince George’s County, Md. Police Department assisted in Monday’s arrest of Edwards-Hamm. “If these allegations are proven true, they are solely the actions of one person,” said Prince George’s County Police Chief Mark A. Magaw. “They do not represent the good works of the men and women of the Prince George’s County Police Department as a whole.”
All told, eleven defendants were arrested in a series of arrests that began on Monday, including seven who were taken into custody today. They include Edwards-Hamm; her brother, Mark Edwards, 39, of Capitol Heights, Md.; Brian Bauer, 38, of Culpeper, Va.; Joshua Brown, 37, of Culpeper, Va.; Jerome Cobble, 31, of Alexandria, Va., and his father, Roger Cobble, 55, of District Heights, Md.; Sean Douglas, 46, of Washington, D.C.; Alonzo Fields, 51, of Washington, D.C. ; Calvin Stoddard, 35, of Washington, D.C., Melvin Sugg, 68, of Landover, Md. , and Sidney Woodruff, Sr., 58, of Washington, D.C.
Three defendants already were in custody: Donald Jenkins, 32, of Culpeper, Va., Jonathan Marshall, 38, of Brandy Station, Va., and Sandra Settle, 31, of Rixeyville, Va. Two men and a woman are being sought.
Many of the defendants made their first court appearances in the case this afternoon.
An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
This prosecution grew out of a long-term FBI/MPD alliance called the Safe Streets Task Force that targets violent drug trafficking gangs in the District of Columbia. The Safe Streets Initiative is funded in part by the Baltimore Washington High Intensity Drug Trafficking Area as well as the Organized Crime Drug Enforcement Task Force. The initiative involves more than 150 Safe Streets Task Forces across the country that combat street gangs by combining federal, state and local police resources. The task forces, which began in 1992 in Los Angeles and the District of Columbia, address gang activity, including drug-related crimes.In announcing the charges, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier expressed appreciation for those who pursued the investigation from the FBI/MPD Safe Streets Task Force. They also expressed appreciation for the assistance provided by the Prince George's County, Md., and Culpeper, Va. police departments as well as the U.S. Marshals Service and the Charlottesville Resident Agency of the FBI’s Richmond Field Office.
In addition, they acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Paralegal Specialists Teesha Tobias and Starla Stolk; Program Specialist Kim Hall, and Legal Assistants Diane Brashears and Jessica Moffatt. Finally, they thanked Assistant U.S. Attorneys Kenneth F. Whitted and David B. Kent of the Violent Crime and Narcotics Trafficking Section and Assistant U.S. Attorneys Arvind K. Lal, Catherine K. Connelly and Zia Faruqui, of the Asset Forfeiture and Money Laundering Section.
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Wood Co. Man Indicted by A Federal Grand Jury for Child Pornography OffenseRead the Press Release
Matthew Wiggins allegedly viewed images of child pornography during public library visit
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that a Wood County man was indicted by a federal grand jury sitting in Charleston for a child pornography offense. Matthew John Wiggins, 40, of Parkersburg, W.Va., was charged with access with intent to view child pornography. The single-count indictment alleges that on January 17, 2013, Wiggins viewed images of child pornography from a computer that was located inside of the Parkersburg & Wood County Public Library.
Wiggins faces a mandatory minimum of 10 years and up to 20 years in prison because of his previous conviction in the United States District Court for the Southern District of West Virginia for possession of child pornography.
The West Virginia Internet Crimes Against Children Task Force and the Parkersburg Police Department conducted the investigation. Assistant United States Attorney Lisa Johnston is in charge of the prosecution.
The indictment was brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Note: The charge contained in the indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.Click here to view a copy of the indictment
Wanblee Man Indicted on 15 Counts of Sexual Abuse and IntimidationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wanblee, South Dakota, man has been indicted by a federal grand jury for allegedly sexually abusing and intimidating members of his family between 2006 and 2010.
Charles Chipps, age 65, was indicted by a federal grand jury on June 18, 2013, for seven counts of Aggravated Sexual Abuse of a Minor, three counts of Abusive Sexual Contact of a Minor, three counts of Aggravated Incest, and two counts of Witness Intimidation.
Chipps appeared before U.S. Magistrate Judge Veronica L. Duffy on July 10, 2013, and pled not guilty to the indictment. Chipps faces a mandatory minimum of 30 years’ imprisonment up to a maximum of life imprisonment upon conviction and a $250,000 fine.
The charges are merely accusations and Chipps is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.
Chipps was remanded to the custody of the U.S. Marshal. A trial date has been set for September 17, 2013.
If you have any additional information on this case, please call the Federal Bureau of Investigation at (605) 343-9632.Victims of Bayou Hedge Funds Receive Another$31 Million in Forfeited Assets, Including Millions Repatriated from Singapore and the United KingdomRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York announced that today the Clerk of the Court distributed $31,788,917.44 in proceeds from forfeited assets to victims of the fraud committed at the Bayou hedge funds. The forfeited assets include approximately $2 million seized from a bank account in Singapore and $1 million seized from a bank account in the United Kingdom. This brings the total value of the forfeited assets distributed to Bayou fraud victims to over $128 million.
U.S. Attorney Bharara stated: “We are dedicated to using forfeiture to compensate victims for their losses whenever possible. This return of money to Bayou fraud victims underscores the power and flexibility of forfeiture as a tool to help victims of major financial crimes. It also demonstrates our commitment to working with foreign governments to pursue and seize criminal proceeds that are transferred into offshore accounts.”
According to documents filed in these cases:
SAMUEL ISRAEL III, DANIEL E. MARINO and JAMES G. MARQUEZ were each convicted of defrauding investors by inducing them to invest in the various Bayou hedge funds and creating fake financial statements. These statements falsely represented that the Bayou hedge funds were profitable, when in fact they were sustaining substantial losses. As a result, the total loss to investors was approximately $300 million. As part of the sentences imposed in 2008 by United States District Judge Colleen McMahon, ISRAEL and MARINO were each directed to pay restitution of $300 million to victims of the Bayou fraud. MARQUEZ was directed to pay restitution of $6,259,650. In addition, ISRAEL and MARINO each were sentenced to 20 years in prison. MARQUEZ was sentenced 51 months in prison.
Following entry of these restitution orders, the U.S. Attorney’s Office in the Southern District of New York, with the assistance of the United States Marshals Service and a court-appointed receiver, pursued and forfeited assets that were traceable to the Bayou fraud. In 2008, the United States restored to victims over $115 million in proceeds of the Bayou fraud, consisting primarily of funds seized from bank accounts in the United States and interest on the seized funds.
The Clerk of the Court distributed these seized funds in accordance with distribution orders that created a reserve fund consisting of 25.18% of the restored funds. Judge McMahon created the reserve fund to permit the payment of restitution to investors in the Bayou hedge funds who redeemed all or part of their investment and may be ordered to return a portion of their investment in connection with the ongoing Bayou bankruptcy action, In re Bayou Group LLC, et al., 06-22306 (ASH). Since the creation of the reserve fund, dozens of redeeming investors have been included in amended restitution orders and have received distributions of reserve funds. Following resolution of claims brought against redeeming investors in the Bayou bankruptcy action, the Government successfully moved for the distribution of these reserve funds to existing fraud victims. Today’s distribution to victims includes the entire reserve fund, consisting of $20,985,100.21.
The remaining funds distributed to Bayou fraud victims are derived from dozens of assets that were liquidated following the sentencing of ISRAEL, MARINO, and MARQUEZ. These assets include a variety of securities for which Judge McMahon entered a final order of forfeiture in April 2013. The assets also include $1 million in funds repatriated from a bank account in the United Kingdom and $1,999,994.19 in funds repatriated from a bank account in Singapore, both of which were forfeited to the United States following a contested ancillary forfeiture proceeding.
Mr. Bharara praised the outstanding efforts of the Federal Bureau of Investigation and the U.S. Marshals Service in this case. He also thanked the U.S. Department of Justice’s Office of International Affairs, the United Kingdom’s Foreign and Commonwealth Office, the City of London Police Economic Crimes Directorate, the Attorney General’s Chambers of the Singapore Government, and the Financial Investigation Division of the Singapore Government’s Commercial Affairs Department for their significant assistance in the forfeiture proceedings.
This case is being handled by the Office’s Asset Forfeiture Unit and the White Plains Division. Assistant U.S. Attorneys Jeffrey Alberts, Perry Carbone, and Sharon Cohen Levin are in charge of the prosecution.
Utah Woman Charged with Assault Resulting in Serious Bodily InjuryRead the Press Release
Appearances for July 16, 2013
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced that on May 23, 2013, Tahlene Shaw Serawop, a 25-year-old Ute Tribal Member, was charged in an indictment with one count of assault resulting in serious bodily injury in violation of 18 U.S.C. §§ 113(a)(6) and 1153. The charge against Ms. Serawop stemmed from an incident that occurred on December 20, 2012 on the Wind River Indian Reservation. The case was investigated by the Federal Bureau of Investigation with assistance from the Bureau of Indian Affairs. An indictment is only an accusation. In every criminal case, the accused is presumed to be innocent until proven guilty, and the government always has the burden of proving guilt at trial beyond a reasonable doubt.
Northern Arapaho Man Charged with Assault with a Dangerous Weapon with Intent to do Bodily Harm and Second Degree Murder
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced that on July 10, 2013, Dean Moss, a 25-year-old enrolled Northern Arapaho man from Arapahoe, Wyoming, appeared in Federal Court for an initial appearance before Magistrate Judge Teresa M. McKee on charges of assault with a dangerous weapon with intent to do bodily harm in violation of 18 U.S.C. §§ 113(a)(3) and 1153 and second degree murder in violation of 18 U.S.C. §§ 1111(a) and 1153. A combined preliminary hearing and detention hearing was held on July 15, 2013, at which time Magistrate McKee found probable cause for the charges and detained Moss pending further proceedings. The charges stem from a stabbing which occurred on June 9, 2013, in the Great Plains Housing Area on the Wind River Indian Reservation. The case is being investigated by the Federal Bureau of Investigation with substantial assistance from the Bureau of Indian Affairs. A complaint is only an accusation. In every criminal case, the accused is presumed to be innocent until proven guilty, and the government always has the burden of proving guilt at trial beyond a reasonable doubt.
Two Men Associated with the Ms-13 Gang Indicted for the Robbery of A Brothel That Included A Rape and MurderRead the Press Release
Greenbelt, Maryland - A federal grand jury has returned a third superseding indictment charging Ramon Miguel Cerros-Cruz, age 23, of Silver Spring, Maryland, and Alexsi Lopez, age 25, of Hyattsville, Maryland, with conspiracy and the violent robbery of a Hyattsville brothel that allegedly resulted in a rape and murder. Ramon Cerros-Cruz was previously charged with these crimes. The third superseding indictment returned late yesterday added Alexsi Lopez as a defendant in the case.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to the indictment, Cerros-Cruz and Lopez knew each other through their association with the MS-13 gang. The two count indictment alleges that Cerros-Cruz and Lopez, familiarized themselves with the location and operation of brothels in the Hyattsville-Langley Park area of Prince George’s County. Cerros-Cruz and Lopez allegedly planned the robbery of a Hyattsville brothel apartment, armed with knives, and using force and violence. The indictment charges that on February 28, 2007, Cerros-Cruz and Lopez entered the brothel apartment, demanding money from persons within the brothel and searching the apartment for money and items of value. The indictment charges that during the robbery Cerros-Cruz and Lopez bound one of the employees, raped another employee and murdered a third person who arrived at the brothel during the commission of the rape and robbery and resisted the demands of the defendants.
The defendants face a maximum sentence of 20 years in prison for the conspiracy and for the robbery.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Steven E. Swaney, who are prosecuting the case.
Three Indicted, One Charged in Information for Labor TraffickingRead the Press Release
A five-count indictment was filed charging three people from Ashland, Ohio, with engaging in a labor trafficking conspiracy and other crimes related to them holding woman with cognitive disabilities and her child against their will and forcing the woman to perform manual labor for them, law enforcement officials said today.
Jordie L. Callahan, 26, Jessica L. Hunt, 31, and Dezerah L. Silsby, 21, used a combination of violence, threats, sexual assaults, humiliation, deprivation and monitoring to establish and continue a pattern of domination and control over their victims, identified only as S.E. and B.E., according to the indictment.
Their tactics included beating S.E., threats of beatings to S.E. and B.E., taunting and threatening the victims with pit bulls and snakes, causing the victims to sleep in unsafe and unsanitary conditions, restricting B.E. and S.E.’s access to the bathroom, preventing them from eating regular and suitable meals and forcing S.E. to eat dog food and crawl on the floor while wearing a dog collar, according to the indictment.
Callahan pointed a firearm at S.E.’s head and threatened to kill her if she did not perform the labor and services he and other conspirators commanded. Callahan also forced S.E. on multiple occasions to engage in sex acts with him and threatened that he and Hunt would kill S.E. if she told anyone about the forced sexual acts, according to the indictment.
A fourth person, Daniel J. Brown, 33, of Ashland, was charged with one count of conspiracy in a criminal information filed today.
“These charges paint a picture of the unspeakable cruelty these defendants inflicted upon this mother and her child,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “It provides another stark reminder that human trafficking takes place all around us, and that we need to be better neighbors to one another.”
“These defendants are being held accountable for their unfathomable treatment of another human being,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The FBI will continue to aggressively pursue and bring to justice those individuals that force others into unlawful labor or sex practices.”
Callahan, Hunt and Silsby face one count each of the following: conspiracy to violate laws; forced labor; theft of government benefits and acquiring a controlled substance by deception. Callahan and Hunt face an additional charge of tampering with a witness.
The conspiracy between Callahan, Hunt, Silsby and Brown took place between August 2010 and October 2012.The object of the conspiracy included holding S.E. in a condition of forced labor and involuntary servitude; obtaining S.E.’s and B.E.’s public assistance benefits and intentionally causing painful injuries to S.E. so they could use the narcotic pain medications she was prescribed to satisfy their personal drug craving, according to the indictment.
Callahan and Hunt recruited S.E. and B.E. to live with them in their two-bedroom apartment in Ashland, knowing that S.E. has a cognitive disability and that S.E. and B.E. received monthly public assistance payments, according to the indictment.
In or around September 2010, Callahan and Hunt forced S.E. to have her and B.E.’s public assistance benefits issued on a debit card rather than paper check. They then took control of the card, forced S.E. to give them the PIN and used the card for their own benefit and the benefit of their family and friends, according to the indictment.
In August 2011, Silsby, at the direction of Callahan and Hunt, smashed S.E.’s hand with a rock with such force that S.E. needed to go to the hospital emergency room. Callahan, Hunt and Silsby then forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated at the emergency room, according to the indictment.
In December 2011, Callahan and Hunt injured S.E.’s back with such force that she needed medical treatment. Again, Callahan and Hunt forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated, according to the indictment.
In March 2012, Callahan kicked S.E. in the hip with such force that she needed medical treatment. Callahan and Hunt forced S.E. to give them the narcotic pain pills and prescription for narcotic pain pills she obtained after being treated, according to the indictment.
On multiple occasions between August 2010 and October 2012, Callahan and Hunt threatened S.E. and B.E. with serious physical harm, including death, if S.E. did not clean up the apartment, care for their numerous pit bull dogs, snakes and other reptiles, purchase items at the store and perform other labor and services ordered by the conspirators, according to the indictment.
Callahan and Hunt used a video camera to monitor S.E. and B.E.’s activities and conversations in the apartment. They often forced S.E. to walk to the store to buy groceries, cigarettes, dog food and other items for Callahan, Hunt and Hunt’s four sons and to pay for these purchases with her public assistance card. They allotted S.E. only a brief time period to complete the shopping and warned her she was not allowed to speak with anyone while she was out. They frequently required B.E. to remain with them at the apartment while S.E. was out and threatened physical harm to B.E. and S.E. if S.E. broke any of their rules, according to the indictment.
Callahan and Hunt also threatened to contact Ashland County Job and Family Services and have B.E. taken away if S.E. purchased any items at the store other than those they ordered or if she told anyone about their unlawful conduct, according to the indictment.
In June 2011, after S.E. and B.E. had attempted to flee the apartment, Callahan and Hunt ordered Brown and Silsby to find S.E. and B.E. and bring them back to the apartment. Brown and Silsby lured S.E. and B.E. into their vehicle by promising to take them to Dairy Queen, only to deposit them afterwards back at the apartment, according to the indictment.
On multiple occasions, Callahan and Brown locked S.E. and B.E. in a room with a window that was nailed shut and a door that had been locked from the outside, according to the indictment.
In October 2011, Callahan and Hunt forced S.E. to hit her child while they recorded a video, and threatened to inflict much greater physical harm on both S.E. and B.E. if S.E. did not comply, according to the indictment.
One month later, Callahan and Hunt again forced S.E. to strike B.E. while they captured a video recording of the staged incident on Callahan’s cell phone. Callahan and Hunt repeatedly threatened have B.E. taken away by showing the videos to authorities in order to secure S.E.’s compliance to the conspirators’ commands.
The case is being prosecuted by Assistant U.S. Attorneys Chelsea Rice and Thomas E. Getz, with assistance from Trial Attorney Victor Boutros of the Justice Department’s Human Trafficking Prosecution Unit, following an investigation by the FBI and Ashland Police Department, with assistance from the Ashland County Prosecutor’s Office.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including each defendant’s prior criminal record (if any), his or her role in the offenses and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tennessee Couple Indicted for Warzone Contracting SchemeRead the Press Release
Alleged to Have Steered $6.9 Million in Proceeds from Defense Subcontracts in Afghanistan
ALEXANDRIA, Va. – Keith Johnson, 46, and Angela Johnson, 44, both of Maryville, Tn., were indicted by a federal grand jury today on charges of conspiracy to commit wire fraud and substantive wire fraud for their alleged role in a scheme to steer $6.9 million from Department of Defense (DoD) subcontracts in Afghanistan to shell entities through kickbacks and the use of assumed names.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Robert E. Craig, Defense Criminal Investigative Service (DCIS) Special Agent in Charge of Mid-Atlantic Field Office; John Sopko, Inspector General for Special Inspector General for Afghanistan Reconstruction (SIGAR); and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU), made the announcement following the grand jury’s return of the indictment.
Keith and Angela Johnson face a maximum penalty of 20 years in prison for conspiracy and up to 20 years in prison on each count of wire fraud if convicted.
According to the indictment, between July 2007 and June 2010, Keith and Angela Johnson engaged in a scheme to defraud Company #1, a DoD contractor, relating to two contracts worth more than $269 million. The contracts at issue were to provide vehicle-fleet maintenance for the Afghan National Army (ANA). Keith Johnson worked for Company #1 in Kabul, Afghanistan, as its Project Manager and Procurement Manager for the ANA contracts. Johnson fielded requests for vehicle parts from Company #2, a Company #1 subcontractor. Company #1 would then issue purchase orders for those parts to subcontractors after receiving multiple bids. In September 2007, Keith and Angela Johnson formed Company #4 as a Tennessee corporation, but they listed Angela Johnson’s mother and daughter on its corporate documents. Thereafter, Keith Johnson used his position in Company #1 to steer parts-supply purchase orders and other business on the ANA contracts to Company #4. To conceal Keith Johnson’s relationship to Company #4, Angela Johnson used her maiden name when interacting with Company #1 on Company #4’s behalf.
According to the indictment, the Johnsons also agreed with two other individuals at Company #2 to further the scheme. The two Company #2 employees helped steer Company #1 business to the Johnsons through Company #4, and Keith Johnson helped steer Company #1 business to Company #3, an entity operated by the two Company #2 employees using a fictional name. The Company #2 employees allegedly paid kickbacks to the Johnsons through a shell company. As part of the scheme, the Johnsons also allegedly participated in a bid-rigging practice of coordinating inflated bids on behalf of Company #3 or Company #4 to ensure that the other company would receive particular contracts. The conspirators also caused Company #1 to order excess parts that were not yet needed on Company #1’s contracts, and Company #4 did not ultimately supply all parts in compliance with Company #1’s requirements.
According to the indictment, the conspirators obtained $6,933,179.31 in proceeds from the scheme, which they used in part to purchase, among other items, several luxury vehicles and more than $191,000 in jewelry.
This case is being investigated by the Defense Criminal Investigative Service, the Federal Bureau of Investigation, the Special Inspector General for Afghanistan Reconstruction, and the U.S. Army Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Ryan Faulconer of the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section, who is also a Special Assistant U.S. Attorney in the Eastern District of Virginia.
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.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.Stratford Man Sentenced to Federal Prison for Tax EvasionRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that LENWORTH HAYNES, 55, of Stratford, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to six months of imprisonment and six months of home confinement with electronic monitoring.
According to court documents and statements made in court, HAYNES was employed as a cook at a nursing home in Trumbull and, since approximately 1996, operated his own tax preparation business. From 2006 to 2008, HAYNES evaded his personal federal income taxes by failing to declare income he earned from his tax preparation business. During those three years, HAYNES should have reported total taxable income of $255,071.38. Instead, he reported taxable income of negative $3,761, resulting in a loss to the government of $82,704.
HAYNES has been ordered to pay back taxes, plus interest and penalties.
On April 17, 2013, HAYNES pleaded guilty to one count of tax evasion.
This matter was investigated by the Internal Revenue Service – Criminal Investigation and was prosecuted by Assistant United States Attorney Susan L. Wines.
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[email protected]St. Francis Man Charged and Sentenced for Assault by Striking, Beating, and WoundingRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota, man convicted of Assault by Striking, Beating and Wounding has pled guilty to the charges and was sentenced on July 12, 2013, by U.S. Magistrate Judge Mark A. Moreno.
Andre DeShazier, age 55, was sentenced to 1 year probation and $25 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on April 4, 2013, when DeShazier punched the victim in the head.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher. DeShazier was released.Southfield Tax Preparer Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
Anthony Womack, 57, of Southfield, Michigan, pleaded guilty to one count of willfully aiding in the preparation and filing of fraudulent income tax returns, United States Attorney Barbara L. McQuade announced. Ms. McQuade was joined in the announcement by Special Agent in Charge Erick Martinez, Internal Revenue Service Criminal Investigation.
From approximately 2008 through 2010, Womack prepared tax returns in Southfield, Michigan, under the name “Tax Consultants Inc.” Womack prepared and filed federal income tax returns for 2008 through 2010, which he knew were fraudulent, with the Internal Revenue Service in the name of various taxpayers. The returns were filed with inflated charitable contributions, false unreimbursed employee expenses, and false education credits. Womack caused a tax loss of more than $96,000 to the United States by his fraudulent conduct. In addition, Womack did not claim the income from his tax preparation business on his personal income tax returns.
Womack entered the guilty plea in United States District Court before Chief Judge Gerald E. Rosen.
Erick Martinez, Special Agent in Charge stated, “IRS, criminal investigators uncovered Mr. Womack’s illegal activity and he will now pay the price for his actions.”
A sentencing hearing was set by Chief Judge Rosen for October 17, 2013, at 11 am. The maximum penalty for making false, fictitious, or fraudulent claims is imprisonment of not more than three years and a $100,000 fine.
The investigation of this case was conducted by special agents of the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Stephen Hiyama.
Skokie Businessman Sentenced to Federal Prison for Evading $1 Million in Taxes Related to Secret Offshore Swiss Bank AccountRead the Press Release
CHICAGO — The owner of a cemetery monument business in north suburban Skokie was sentenced today to a year and a day in federal prison for evading more than $1 million in federal taxes on more than $3.3 million in income, including interest on millions of dollars he held in a secret offshore financial account with UBS, a global financial services firm headquartered in Switzerland. The defendant, PETER TROOST, pleaded guilty in March to the felony charge that was filed in February in U.S. District Court.
Troost, 78, of Skokie, has already paid $1,039,343 in back taxes to the Internal Revenue Service, as well as a civil penalty of approximately $3.75 million, but U.S. District Judge John J. Tharp, Jr., said those payments alone would not sufficiently deter wealthy individuals from failing to meet their voluntary tax obligations.
Judge Tharp also fined Troost $32,500 and ordered him to serve 200 hours of community service during a year of supervised release after he is incarcerated. He was ordered to begin serving his sentence on Dec. 2.
“Troost did not evade his taxes out of financial need or desperation. He operated a profitable and successful business; he had more than enough money to pay his taxes. He made a deliberate, conscious decision not to do so,” the government argued at sentencing.
Troost owns and operates Troost Memorials, a closely-held company that designs and sells cemetery monuments and gravestones. The business is located in a strip mall Troost owns at 9853 Gross Point Rd., Skokie, and he owns another strip mall located at 1816-44 Arlington Heights Rd., in Arlington Heights. The defendant is not involved with Peter Troost Monument Company, of Hillside, which is a different company from Troost Memorials.
Troost was the first taxpayer charged in Federal Court in Chicago in connection with an ongoing investigation of U.S. taxpayer clients of UBS and other overseas banks that hid foreign accounts from the Internal Revenue Service. In February 2009, UBS entered into a deferred prosecution agreement with the United States, admitting that it helped taxpayers hide accounts from the IRS. As part of the agreement, UBS provided the government with the identities of, and account information for, certain customers of UBS’ U.S. cross-border banking business.
According to Troost’s plea agreement, from at least 1999 until 2009, he transferred hundreds of thousands of dollars from the United States to his individual offshore UBS account for the sole purpose of evading domestic income taxes. He maintained at least one offshore UBS account between 1981 and 2009, while maintaining at least one additional joint account. He managed both accounts with the assistance of a UBS personal banker based on the island of Jersey. In addition to failing to report interest income, Troost admitted that he intentionally failed to report all of his income from his monument business and his rental properties.
Between 1999 and 2009, Troost failed to report income from all sources totaling $3,338,929, on which he owed $1,039,343 in federal taxes. In addition, Troost stated on his returns for each of those years that he did not have an interest in a financial account in a foreign country, when, in fact, he knew he maintained the offshore UBS account.
The sentence was announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
Defendants convicted of tax offenses face mandatory costs of prosecution and remain civilly liable to the government for any and all back taxes, as well as a potential civil fraud penalty of up to 75 percent of the underpayment plus interest. Federal tax law requires U.S. taxpayers pay taxes on all income earned worldwide. Taxpayers must also report foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during the calendar year. A deliberate failure to file a Report of Foreign Bank and Financial Accounts (FBAR) with the U.S. Treasury Department can result in a penalty of up to 50 percent of the amount in the account at the time of the violation.
The government was represented by Assistant U.S. Attorney Brian Havey.
Six from Northeast Ohio Indicted for Conspiracy to Distribute HeroinRead the Press Release
Six men from Northeast Ohio were indicted on one count of conspiracy to distribute heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are: Maceo Moore, aka “Chase,” aka “Paper,” 37, of Euclid; Keith Ricks, aka “K-Mack,” 31; Maurice Golston, aka “Reese,” 32; Leamon Shephard, aka “Juice,” 25; Dionte Thompson, aka “Dionte Ricks,” aka “Pringles,” 24; and Marcus Blue, aka “Blue,” 30, all of Cleveland.
The indictment alleges that between approximately August 2012 and June 2013, the defendants conspired to distribute and possess with intent to distribute one kilogram or more of heroin.
All six defendants were arrested on June 19, 2013, after being charged by a federal complaint with conspiracy to distribute heroin. At that time, all six defendants waived their rights to detention and preliminary hearings and were ordered detained without bond pending further proceedings in the case.
The indictment results from an investigation conducted by the Federal Bureau of Investigation, the Northern Ohio Law Enforcement Task Force (NOLETF), the High Intensity Drug Trafficking Area (HIDTA) Task Force, Cleveland Division of Police and the Internal Revenue Service.
This case is being prosecuted by Assistant United States Attorneys Matthew W. Shepherd, Matthew B. Kall, and Daniel J. Riedl.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offense and the characteristics of the violation. In all cases, the sentences will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt.
A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The NOLETF is a long standing multi-agency task force comprised of investigators from the Federal Bureau of Investigation, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Cleveland Division of Police, Cleveland Heights Police Department, Cuyahoga County Sheriff’s Office, Euclid Police Department, Regional Transit Authority Police Department, Strongsville Police Department, Westlake Police Department and Shaker Heights Police Department. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area (HIDTA) initiatives. The HIDTA Program supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug-trafficking in Ohio.
Sidney L. Hall Sentenced to 48 Months Imprisonment for Bank Fraud and Aggravated Identity TheftRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Sidney L. Hall, age 63, of Atlanta, and formerly of Albany, Georgia, was sentenced today by United States District Court Judge, W. Louis Sands, in Albany, Georgia, to 48 months imprisonment. Hall was also ordered to pay restitution in the amount of $1,979,291 to seven different banks in Southwest Georgia who loaned monies to him under fraudulent pretenses. Hall must serve five years of supervised release after serving his sentence. Hall remains on bond pending surrender to the Bureau of Prisons.
On December 10, 2012, Hall pled guilty to counts 1 and 14 of a 15 count indictment. Count 1 charged the defendant with bank fraud and carried a maximum possible sentence of 30 years imprisonment, a $1,000,000 fine and five years of supervised release after imprisonment. Count 14 charged the defendant with “aggravated identity theft,” that is, using the personal identify data of a person, here, the forged signature of a bank officer, in order to commit bank fraud. Aggravated identity theft carried a mandatory minimum term of imprisonment of two years, a $250,000 fine and one year of supervised release.
Defendant Hall admitted in his plea agreement that he obtained 70 bank loans at 7 different banks in the total amount of $2.8 million. Hall devised a scheme to lead the lending bank to believe it would have a valid first position lien on the aircraft being financed. In fact, the aircraft in question had already been pledged as collateral to another bank. The government estimated in the plea agreement that at the end of the scheme to defraud Hall had failed to repay approximately $2.7 million to the seven banks who had loaned him money under false pretenses.
The investigation was conducted by the Federal Bureau of Investigation and Assistant United States Attorney Jim Crane handled the prosecution.Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Seven Defendants in Mortgage Origination Fraud Scheme Indicted for Bank Fraud Conspiracy Along with Other ChargesRead the Press Release
The Justice Department announced that seven defendants were arrested and arraigned today for their roles in a mortgage fraud conspiracy that operated in Detroit.
A federal grand jury in the Eastern District Court of Michigan indicted Peter Allen, Suhail Hallak, Al Karana, Joey Murad, Jason Najor, Jeffrey Najor and Wasseem Shamoun with conspiracy to commit bank fraud, numerous counts of bank fraud and other fraud charges.
The indictment alleges that from approximately January 2006 to December 2008, the defendants conspired to defraud lending institutions by obtaining mortgage loans using fraudulent information. According to the indictment, the defendants devised a scheme wherein they purchased property for approximately $5,000 to $40,000 per home, then recruited straw buyers to submit fraudulent loan applications for home mortgages in exchange for a fee. According to the indictment, the scheme caused financial institutions to pay approximately $10 million in fraudulent mortgage loan funds.
In addition to the conspiracy charge, Hallak, Karana, Jason Najor, Jeffrey Najor, and Shamoun are charged with 20 counts of bank fraud, Murad is charged with seven counts of bank fraud and Allen is charged with two counts of bank fraud. Jeffrey Najor is also charged with two counts of assisting in the filing of false tax returns, in connection with his filings on behalf of J.A. Najor Corporation. Jeffrey Najor is also charged with one count of bankruptcy fraud.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty. If convicted of the conspiracy charge, the defendants face up to 30 years in prison and a $1 million fine. Each count of bank fraud carries a maximum penalty of 30 years in prison and $1 million fine. Assisting in the filing of a false return is punishable by up to three years in prison and a fine of $250,000. The bankruptcy fraud charge has a maximum penalty of five years in prison and a fine of $250,000.
This case was investigated by Internal Revenue Service – Criminal Investigation, the Drug Enforcement Administration and the FBI and is being prosecuted by Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Justice Department’s Tax Division.
Self Proclaimed "First Lady" of Tax Fraud Sentenced to 21 YearsRead the Press Release
Tampa, FL - U.S. District Judge James S. Moody, Jr. today sentenced Rashia Wilson (27, formerly of Wimauma) to 19 ½ years in federal prison on wire fraud and aggravated identity theft charges stemming from her scheme to defraud the IRS, and to a consecutive 18 months in federal prison for being a felon in possession of a firearm. The court also ordered Wilson to forfeit $2,240,096.39, which constitute the proceeds traceable to the offense. Wilson pleaded guilty to being a felon in possession of a firearm(s) on December 6, 2012. She pleaded guilty to the wire fraud and aggravated identity theft counts on April 3, 2013.
"Today's sentencing was a result of criminal actions by Rashia Wilson and sends a strong message to others who file false tax returns with stolen identities, that they will face severe consequences," says James Robnett, Special Agent in Charge for the IRS-Criminal Investigation. "These crimes victimize the most venerable of our fellow citizens; the elderly, our youth and family members of the deceased. IRS-CI and its Tampa Bay Alliance partners, along with the US Attorney's Office, will continue to vigorously investigate these crimes."
“Ms. Wilson’s sentence today is an indication of how the courts look upon identity theft," stated John Joyce, Special Agent in Charge for the U.S. Secret Service - Tampa. "To those who venture down the same road, know that you will be caught, and you will be severely punished. The judge’s message is crystal clear.”
"The Inspection Service is committed to preventing the use of the U.S. Mail in criminal schemes and collaborating with sister law enforcement agencies to successfully prosecute responsible parties," said Assistant Inspector in Charge Barney Morris. "The culmination of the Rashia Wilson investigation reflects what can happen when local, state and federal law enforcement agencies work collaboratively to combat these types of crimes."
“There are some in the community who think they can commit tax fraud and get away with it. Those days are over! This case is just an example of the consequences violators will face when they try to steal from hard working taxpayers,” said Tampa Police Chief Jane Castor.
"The success of this investigation was a result of the various agencies working together. This case represents one of the worst tax fraud cases in the Tampa Bay area and the outcome should send a clear message to others that this type of criminal activity will not be tolerated in our community," said Colonel Donna Lusczynski of the Hillsborough County Sheriff's Office.
According to court documents, from at least April 2009, through their arrests in September 2012, Rashia Wilson and her co-conspirator, Maurice J. Larry, engaged in a scheme to defraud the Internal Revenue Service by negotiating fraudulently obtained tax refunds. They did so by receiving U.S. Treasury checks and pre-paid debit cards that were loaded with proceeds derived from filing false and fraudulent federal income tax returns in other persons' names, without those persons’ permission or knowledge. Wilson and Larry filed these false and fraudulent federal income tax returns from multiple locations, including Wilson's residence and hotels in the Tampa area. Wilson, Larry, and others then used these fraudulently obtained tax refunds to make hundreds of thousands of dollars worth of retail purchases, to purchase money orders, and to withdraw cash.
During the course of the investigation, agents searched Wilson's residence and Larry's storage unit and recovered thousands of names and social security numbers in ledgers and on various other records, including medical billing records. Agents also found high end accessories, jewelry, and a hand gun in Wilson's home. Additional reloadable debit cards loaded with fraudulent tax refunds were also found in both locations.
Law enforcement officials also discovered that Wilson, who referred to herself as the "First Lady" and "Queen of Tax Fraud," spent $30,000 on her daughter's first birthday party and purchased a 2013 Audi valued at approximately $90,000, using the proceeds of the tax fraud scheme. The government seized the Audi and other items during the course of the investigation. The IRS estimates that the actual loss from Wilson and Larry's scheme is at least $3,147,477, and the intended loss is in excess of $11 million.
Maurice Larry is set for sentencing in this matter on August 6, 2013.
This case was investigated by the Internal Revenue Service - Criminal Investigation, the United States Secret Service, the United States Postal Inspection Service, the Tampa Police Department, and the Hillsborough County Sheriff's Office. It was prosecuted by Assistant United States Attorneys Sara C. Sweeney and Mandy Riedel.
Rising Sun Man Pleads Guilty to Sexually Exploiting A Minor to Produce Child PornographyRead the Press Release
Baltimore, Maryland – Michael Dale Irwin, age 27, of Rising Sun, Maryland, pleaded guilty today to the sexual exploitation of a minor to produce child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel Marcus L. Brown, Superintendent of the Maryland State Police (MSP); and Cecil County State’s Attorney Ellis Rollins.
According to the plea agreement, on March 12, 2013, a witness reported to Maryland State Police that Irwin had sent an image to her cellular phone documenting his sexual abuse of a prepubescent minor female. The witness contacted MSP when she recognized Irwin in the image. Although the messages were set to “auto delete” and were no longer on the witness’ phone, with the consent of the witness MSP began monitoring calls and text messages between Irwin and the witness and directed all communication by the witness with Irwin. After Irwin sent the witness a video depicting a six to eight year old female engaged in sexually explicit conduct, troopers arrested Irwin at his place of employment and seized his phone, which had been used to text and call the witness. MSP recovered the images and video documenting Irwin’s sexual abuse of a prepubescent minor female and obtained the sexually explicit text messages that he had previously sent to the witness describing in graphic detail the sexual acts he performed on the child.
As part of his plea agreement, Irwin must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Irwin faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison, followed by up to lifetime of supervised release, for sexual abuse of a minor to produce child pornography. U.S. District Judge Richard D. Bennett has scheduled sentencing for October 23, 2013 at 3:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Maryland State Police and the Cecil County State’s Attorney’s Officer for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sandra Wilkinson, who is prosecuting the case.
Respiratory Therapist Pleads Guilty in Identity Theft Tax Refund Fraud Scheme Involving Theft of Hundreds of Patients’ Personal Identity InformationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service, announced that defendant Betty Cole, 34, of Miami, pled guilty yesterday for her participation in a stolen identity tax refund scheme. Sentencing is scheduled for September 23, 2013 at 11:15 a.m. before U.S. District Judge Robin Rosenbaum.
Cole pled guilty to one count of conspiracy to possess fifteen or more unauthorized access devices in violation of Title 18, United States Code, Section 1029(b)(2), and one count of aggravated identity theft in violation of Title 18, United States Code, Section 1028A. At sentencing, the defendant faces a maximum term of imprisonment of seven years.
According to the plea documents, from in or around June 2011, continuing through February 2012, Cole worked as a respiratory therapist at South Miami Hospital (“SMH”) in Miami, Florida. The defendant had access to names, dates of birth, and Social Security numbers (together, personal identity information or “PII”) of patients in the course of her job duties. In or around June 2011, Alci Bonannee asked the defendant to provide Bonannee with PII of SMH patients. In or around June 2011, and again in or around February 2012, Cole obtained the PII of SMH patients and provided that information to Bonannee.
Bonanee used the personal identity information to file fraudulent tax returns with the Internal Revenue Service seeking refunds. Cole knew that Bonannee would use the personal identity information to submit fraudulent tax returns. Bonannee paid Cole thousands of dollars for over 800 patients’ personal identity information.
Mr. Ferrer commended the investigative efforts of IRS-CI and the U.S. Secret Service. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
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.
Quincy Man Sentenced for Credit Card SkimmingRead the Press Release
BOSTON – A Quincy man was sentenced today in connection with his use of stolen credit card numbers to purchase more than $64,000 in cigarettes and other items in Massachusetts and New Hampshire.
Yek Doug Wong, 50, of Quincy, was sentenced by U.S. District Judge George A. O’Toole to 70 months in prison, followed by two years of supervised release and payment of $64,713 in restitution. In April 2013, Wong pleaded guilty to using counterfeit access devices (credit cards), possession of device-making equipment, and six counts of aggravated identity theft.
In October 2011, the Braintree, Brockton and Holbrook Police Departments received reports from numerous people who reported fraudulent activity on their credit card accounts even though all of the victims still possessed their actual cards. Law enforcement collected surveillance video from many of the locations where the purchases had been made as well as receipts from suspect transactions. The surveillance videos showed a man, later identified as Wong, making the purchases and driving off in a black Infiniti with a spoiler on the rear. Ultimately, one clerk noted the license plate of the car which led to Wong and to a search of his Quincy residence. The search resulted in the seizure of, among other things, at least 1,176 embossed and blank Visa, MasterCard and American Express cards, three credit card skimming devices, a card reader and encoding device, two credit card embossing machines, various pieces of computer equipment, 42 cartons of cigarettes, 22 bottles of rice wine, and $16,900 in cash. Officers also seized two safe deposit box keys which led to the seizure of an additional $4,250 in cash.
United States Attorney Carmen M. Ortiz; Steven D. Ricciardi, Special Agent in Charge of the U.S. Secret Service; Braintree Police Chief Russell W. Jenkins; Brockton Police Chief Emanuel Gomes; Holbrook Police Chief William W. Marble, Jr.; and Quincy Police Chief Paul Keenan, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.Providence Gang Member Sentenced to Federal Prison on Firearm ChargeRead the Press Release
PROVIDENCE, R.I. – Nimera Seng, 31, of Providence, a member of the Providence Street Boyz, a Providence street gang, was sentenced today to 30 months in federal prison for being in possession of a loaded 9mm handgun after having been convicted of a domestic violence charge, announced United States Attorney Peter F. Neronha, Kenneth J. Croke, Acting Special Agent in Charge of the Boston Field Divisionof the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Providence Police Chief Colonel Hugh T. Clements, Jr.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Seng to serve 3 years of supervised release upon completion of his prison term. Seng pleaded guilty on April 15, 2013, as charged in an indictment returned on September 12, 2012, to one count of possession of a firearm by an individual convicted of a misdemeanor crime of domestic violence.
According to information presented to the court, a court authorized search of Seng’s residence on September 12, 2012, by ATF agents and Providence Police, resulted in the seizure of a 9mm handgun loaded with 17 rounds of ammunition. Seng admitted to the court that the firearm, which was discovered stashed in a bedroom bureau wedged alongside a drawer, belonged to him. Seng told police that he had purchased the gun on the street for $600 for protection.According to information presented to the court, Seng’s residence had previously been shot at on multiple occasions; and that multiple firearms had been seized from the residence in the past.
According to information on file with the court, in 2005, Seng was convicted in Rhode Island state court on a charge of domestic assault.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
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[email protected]Pizza Franchise Owner and Four Others Indicted for Tax FraudRead the Press Release
The Justice Department announced today that Happy Asker, franchise owner of multiple “Happy’s Pizza” franchises, was indicted by a federal grand jury in Detroit along with Maher Bashi, Tom Yaldo, Arkan Summa and Tagrid Bashi for multiple tax offenses arising from a conspiracy to underreport taxable income and payroll taxes of nine Happy’s Pizza franchises. All defendants with the exception of Happy Asker were arrested.
A multiple count indictment was unsealed in the Eastern District of Michigan charging Happy Asker, Maher Bashi and Tom Yaldo with conspiracy to defraud the United States by keeping fraudulent accounting records and falsely reporting income taxes and payroll taxes due and owing.
The indictment alleges that from approximately June 2004 through April 2011, the defendants conspired with each other to divert business receipts, underreport wages and understate the true income and expenses of specified Happy’s Pizza franchises. According to the indictment, the scheme resulted in the specified franchises paying more than $2.1 million in unreported wages to employees and shareholders
Additional charges in the indictment include three counts of filing a false individual income tax return as to Happy Asker; 21 counts of aiding in the filing of false payroll tax returns as to Happy Asker and Maher Bashi; 23 counts of aiding in the filing of false payroll tax returns as to Tom Yaldo on behalf of specified Happy’s Pizza franchises; and 11 counts as to Happy Asker and Maher Bashi for aiding in filing false corporate tax returns on behalf of specified Happy’s Pizza franchises.
Finally, the indictment also charges Happy Asker and Maher Bashi with one count of obstructing the due administration of the internal revenue laws. Arkan Summa and Tagrid Bashi are also charged together in a count of obstructing the due administration of the internal revenue laws and Tom Yaldo is also charged with one count of obstructing the due administration of the internal revenue laws.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty. If convicted of the conspiracy charge, the defendants face up to 5 years in prison and a $250,000 fine. The charges of filing a false income tax return and aiding or assisting in filing a false return carry a maximum penalty of three years in prison and a fine of $250,000 for each count. The obstruction charge carries a maximum penalty of three years in prison and a fine of $250,000 for each count.
This case was investigated by Internal Revenue Service – Criminal Investigation, the Drug Enforcement Administration and the FBI and is being prosecuted by Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Justice Department’s Tax Division.
Related Materials:
United States v. Happy Asker, et al.
Indictment ((PDF)Pill Mill Doctor Pleads Guilty to Oxycodone ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, announced today that Dr. Scott Becker, 54, of Pembroke Pines, Florida, pleaded guilty to conspiring to distribute and dispense large amounts of oxycodone without a legitimate medical purpose and outside the usual course of professional practice. Dr. Becker also pleaded guilty to money laundering. Becker faces maximum terms of imprisonment of five years on the drug conspiracy charge and ten years on the money laundering charge.
According to the terms of the plea agreement, Becker agreed to forfeit $470,400 in money and property representing the illegal narcotics proceeds he earned as a result of his involvement as a physician at All Pain Management in Dania Beach. As set forth in the plea agreement, between February 16 and September 17, 2010, Becker was employed as a clinic doctor at All Pain Management which, at the time, was owned by co-conspirators Vincent Colangelo and several other unnamed individuals. Colangelo pleaded guilty to narcotics, money laundering and federal income tax offenses on April 2, 2012, arising from his ownership of six pill mill clinics and a pharmacy in Broward and Miami-Dade Counties. According to a review of medical records, while at All Pain Management, Becker prescribed 932,259 oxycodone, 30 milligram pills during the course of 4,821 patient visits and more than 98% of Becker’s patients received prescriptions for oxycodone. Becker also laundered approximately $24,142 in illegal narcotics proceeds.
Today’s case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Ferrer thanked the DEA, IRS-CI and the Broward Sheriff’s Office, as well as the many other state and local agencies for their investigative work. This case is being prosecuted by Assistant U.S. Attorneys Scott Behnke and Roger Powell and Tax Division Trial Attorney Greg Tortella.
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.
Philadelphia Man Charged Robbing Haverford Jewelry StoreRead the Press Release
Stephen Easterling, 28, of Philadelphia, Pennsylvania was charged by Information today with one count of Hobbs Act Robbery, announced United States Attorney Zane David Memeger. According to the indictment, the defendant attempted to rob K/V Jewelers, Inc., trading as Main Line Jewelers, located at 7553 Haverford Avenue, Philadelphia, Pennsylvania on February 1, 2013.
If convicted, the defendant faces a maximum possible sentence of 20 years in prison, three years of supervised release, a $250,000 fine, restitution, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Ewald Zittlau.
This case is part of Project Safe Neighborhoods, a federal initiative designed to identify and prosecute firearms offenders in federal court, where the defendant is likely to receive a substantial sentence upon conviction.
Click here to view the indictment
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PATTY HARTMAN, Media Contact, 215-861-8525Philadelphia La Cosa Nostra Member Sentenced to <br /> 137 Months in PrisonRead the Press Release
Damion Canalichio was sentenced today to serve 137 months in prison for his participation in a racketeering conspiracy involving loan sharking and illegal gambling, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and Edward J. Hanko, Special Agent in Charge of the FBI’s Philadelphia Division.
Canalichio, 43, of Turnersville, N.J., was sentenced by U.S. District Judge Eduardo C. Robreno in the Eastern District of Pennsylvania. In addition to his prison term, Canalichio was sentenced to serve three years of supervised release.
On Feb. 5, 2013, after a four-month trial, a jury convicted Canalichio of conspiring to conduct and participate in the affairs of the Philadelphia La Cosa Nostra (LCN) Family through a pattern of racketeering activity. The evidence at trial proved that, in furtherance of the racketeering conspiracy, Canalichio, as a “made” member, engaged in loan sharking and illegal sports bookmaking activities on behalf of the mob. Canalichio exploited the violent reputation of the Philadelphia LCN Family in extending usurious loans and collecting payments on the loans, leaving the borrowers in fear of physical harm if they did not pay promptly. Canalichio also directed and supervised the participation of associates in his crew to carry out these racketeering crimes.
A total of 12 leaders, members and associates of the Philadelphia LCN Family have pleaded guilty or been convicted by a jury as part of this case. Seven of the defendants, including Canalichio, have been sentenced, and five are awaiting sentencing.
The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.
The case is being investigated by the FBI, Internal Revenue Service-Criminal Investigation, Pennsylvania State Police, New Jersey State Police, Philadelphia Police Department, U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations, and U.S. Department of Labor’s Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.Pennsylvania Man Sentenced for Terrorist Solicitation and Firearms OffenseRead the Press Release
Emerson Winfield Begolly, 24, of New Bethlehem, Penn., was sentenced today in Pittsburgh to 102 months in prison for soliciting others to engage in acts of terrorism within the United States and for using a firearm during and in relation to an assault on FBI agents.
In addition, he was sentenced to serve five years supervised release. Begolly pleaded guilty on Aug. 9, 2011, to charges filed in the Eastern District of Virginia and the Western District of Pennsylvania.
The sentence was announced by David J. Hickton, U.S. Attorney for the Western District of Pennsylvania; Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia; John P. Carlin, Acting Assistant Attorney General for National Security; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Gary Perdue, Special Agent in Charge of the FBI’s Pittsburgh Division.
“Emerson Begolly used the Internet to solicit likeminded radical jihadists to commit atrocities and murder,” stated U.S. Attorney Hickton. “Through effective use of court-sanctioned investigative tools, mass tragedy was averted.”
“We now find ourselves in an era where one of the greatest innovations of the modern era – the Internet—is being utilized by radical jihadists who seek to use that medium to endanger American lives,” said U.S. Attorney MacBride. “Those, like Mr. Begolly, who solicit others to engage in acts of terrorism will be brought to justice and prosecuted to the fullest extent of law.”
“This case highlights the need for continued vigilance against homegrown extremism and use of the Internet to incite violence,” said Acting Assistant Attorney General Carlin. “I want to thank the agents, analysts and prosecutors whose work resulted in today’s sentence.”
“Today’s sentence is the result of the effective coordination and enduring resolve of law enforcement to protect our citizens,” said Assistant Director Parlave. “Together with our partners, we will continue to work to combat the threat of violent homegrown extremism and keep our country safe.”
“The case against Mr. Begolly is an important reminder that online-inspired terrorism can occur anywhere, including Western Pennsylvania. Our efforts to detect and disrupt this threat are enduring,” said Special Agent in Charge Perdue. “The FBI, along with our law enforcement partners in the FBI Joint Terrorism Task Force, will continue to proactively employ all necessary resources in order to predict and prevent terrorist attacks from occurring and to ensure the ongoing safety of our communities.”
According to information presented by the government in court, Begolly was an active administrator on the Ansar al-Mujahideen English Forum (AMEF), which is an internationally used Islamic extremist Internet forum. Using the pseudonym of Abu Nancy, Begolly systematically solicited jihadists to use firearms, explosives and propane tanks against targets such as police stations, post offices, Jewish schools and daycare centers, military facilities, train lines, bridges, cell phone towers and water plants.
In the summer of 2010, Begolly urged jihadists on the AMEF to “write their legacy in blood.” Begolly promised a special place in the afterlife for violent action in the name of Allah. Following the reported shootings in Northern Virginia at the Pentagon and the Marine Corps Museum in October 2010, Begolly posted a comment online that praised the shootings and hoped the shooter had followed his previous postings encouraging similar acts of violence. On Dec. 28, 2010, Begolly further solicited his AMEF audience to violence by posting a manual on how to manufacture a bomb.
Days later, on Jan. 4, 2011, FBI agents were assaulted by Begolly as they attempted to prevent him from reaching a loaded 9 mm semi-automatic handgun, which he had concealed on his body. While violently struggling with the agents, Begolly bit the agents on their fingers in an attempt to free himself to reach his firearm. His actions are consistent with a posting in which he urged his audience not to be taken alive by law enforcement, to always carry a loaded firearm, and to aggressively resist any law enforcement encounter including biting fingers if necessary.
These cases were investigated by the FBI Washington Field Office and the FBI Pittsburgh Field Office. Assistant U.S. Attorney Neil Hammerstrom of the U.S. Attorney’s Office for the Eastern District of Virginia’s National Security and International Crime Unit, Assistant U.S. Attorney James Kitchen of the U.S. Attorney’s Office for the Western District of Pennsylvania’s National Security and Cybercrime Section, and Trial Attorney Stephen Ponticiello of the Counterterrorism Section in the Justice Department’s National Security Division are prosecuting the cases.
Pennsylvania Man Sentenced to Two Years in Prison for Selling Thousands of Dollars Worth of Firearms to New Jersey ResidentRead the Press Release
NEWARK, N.J. – A Pennsylvania man was sentenced today to 24 months in prison for illegally selling firearms and ammunition on multiple occasions for thousands of dollars in cash, U.S. Attorney Paul J. Fishman announced.
Eduardo Velasquez, 63, of Reading, Pa., previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of illegally dealing in firearms. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Velasquez admitted that he traveled from Pennsylvania to Jersey City, N.J., on five separate occasions, between July 5, 2012, and Oct. 18, 2012, for the purpose of selling firearms. Velasquez sold 11 firearms to a New Jersey resident for more than $9,000. The firearms sold by Velasquez included: (1) two SKS 39 mm rifles; (2) a Mossberg Model 88 shotgun; (3) a Winchester Model 1300 12-gauge shotgun; (4) a Mossberg Model 190 16-gauge shotgun; (5) a stolen Ruger 9 mm semi-automatic handgun; (7) a Smith & Wesson .41 caliber revolver; (8) a Taurus PT917 9 mm semi-automatic pistol; (9) a Desert Eagle .44 caliber semi-automatic pistol; and (10) a Smith & Wesson SW99 .40 caliber handgun.
Velasquez sold multiple high-capacity magazines and more than 80 rounds of ammunition, including several hollow-point bullets. Velasquez indicated to the buyer that he often shipped firearms to the Dominican Republic, and could procure additional long guns, such as double-barrel shotguns and military rifles.
In addition to the prison term, Judge Walls sentenced Velasquez to three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
13-288Defense counsel: Tomas Espinosa Esq. Union City, N.J.
Pennsylvania Man Sentenced for Terrorist Solicitation and Firearms OffenseRead the Press Release
WASHINGTON – Emerson Winfield Begolly, 22, of New Bethlehem, Penn., was sentenced today in Pittsburgh to 102 months in prison for soliciting others to engage in acts of terrorism within the United States and for using a firearm during and in relation to an assault on FBI agents.
In addition, he was sentenced to serve five years supervised release. Begolly pleaded guilty on Aug. 9, 2011, to charges filed in the Eastern District of Virginia and the Western District of Pennsylvania.
The sentence was announced by David J. Hickton, U.S. Attorney for the Western District of Pennsylvania; Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia; John P. Carlin, Acting Assistant Attorney General for National Security; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Gary Perdue, Special Agent in Charge of the FBI’s Pittsburgh Division.
“Emerson Begolly used the Internet to solicit likeminded radical jihadists to commit atrocities and murder,” stated U.S. Attorney Hickton. “Through effective use of court-sanctioned investigative tools, mass tragedy was averted.”
“We now find ourselves in an era where one of the greatest innovations of the modern era – the Internet—is being utilized by radical jihadists who seek to use that medium to endanger American lives,” said U.S. Attorney MacBride. “Those, like Mr. Begolly, who solicit others to engage in acts of terrorism will be brought to justice and prosecuted to the fullest extent of law.”
“This case highlights the need for continued vigilance against homegrown extremism and use of the Internet to incite violence,” said Acting Assistant Attorney General Carlin. “I want to thank the agents, analysts and prosecutors whose work resulted in today’s sentence.”
“Today’s sentence is the result of the effective coordination and enduring resolve of law enforcement to protect our citizens,” said Assistant Director Parlave. “Together with our partners, we will continue to work to combat the threat of violent homegrown extremism and keep our country safe.”
“The case against Mr. Begolly is an important reminder that online-inspired terrorism can occur anywhere, including Western Pennsylvania. Our efforts to detect and disrupt this threat are enduring,” said Special Agent in Charge Perdue. “The FBI, along with our law enforcement partners in the FBI Joint Terrorism Task Force, will continue to proactively employ all necessary resources in order to predict and prevent terrorist attacks from occurring and to ensure the ongoing safety of our communities.”
According to information presented by the government in court, Begolly was an active administrator on the Ansar al-Mujahideen English Forum (AMEF), which is an internationally used Islamic extremist Internet forum. Using the pseudonym of Abu Nancy, Begolly systematically solicited jihadists to use firearms, explosives and propane tanks against targets such as police stations, post offices, Jewish schools and daycare centers, military facilities, train lines, bridges, cell phone towers and water plants.
In the summer of 2010, Begolly urged jihadists on the AMEF to “write their legacy in blood.” Begolly promised a special place in the afterlife for violent action in the name of Allah. Following the reported shootings in Northern Virginia at the Pentagon and the Marine Corps Museum in October 2010, Begolly posted a comment online that praised the shootings and hoped the shooter had followed his previous postings encouraging similar acts of violence. On Dec. 28, 2010, Begolly further solicited his AMEF audience to violence by posting a manual on how to manufacture a bomb.
Days later, on Jan. 4, 2011, FBI agents were assaulted by Begolly as they attempted to prevent him from reaching a loaded 9 mm semi-automatic handgun, which he had concealed on his body. While violently struggling with the agents, Begolly bit the agents on their fingers in an attempt to free himself to reach his firearm. His actions are consistent with a posting in which he urged his audience not to be taken alive by law enforcement, to always carry a loaded firearm, and to aggressively resist any law enforcement encounter including biting fingers if necessary.
These cases were investigated by the FBI Washington Field Office and the FBI Pittsburgh Field Office. Assistant U.S. Attorney Neil Hammerstrom of the U.S. Attorney’s Office for the Eastern District of Virginia’s National Security and International Crime Unit, Assistant U.S. Attorney James Kitchen of the U.S. Attorney’s Office for the Western District of Pennsylvania’s National Security and Cybercrime Section, and Trial Attorney Stephen Ponticiello of the Counterterrorism Section in the Justice Department’s National Security Division are prosecuting the cases.
Passaic County, N.J., Man Sentenced to 15 Months in Prison for Importing and Selling Counterfeit MerchandiseRead the Press Release
NEWARK, N.J. – A Passaic County, N.J., man was sentenced today to 15 months in prison for importing and selling counterfeit merchandise, U.S. Attorney Paul J. Fishman announced.
Wesam Abedrabbo, 29, of Clifton, N.J., previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with trafficking in counterfeit goods. Judge Hayden imposed sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Abedrabbo admitted that from March 2010 through May 2012, he imported counterfeit merchandise from Asian locations, including China, Taiwan, and Japan, for resale in the United States. The counterfeit merchandise purported to be from companies including the North Face and UGG, and professional sports associations, such as the NFL, NHL, and MLB. Abedrabbo advertised the counterfeit merchandise on the Web site tophotnamebrands.com and sold the counterfeit merchandise on eBay. Abedrabbo also paid other individuals a commission to sell the counterfeit merchandise for him over the Internet. In connection with his illicit efforts, Abedrabbo sold more than $350,000 worth of counterfeit goods.
In addition to the prison term, Judge Hayden sentenced Abedrabbo to one year of supervised release. She also ordered Abedrabbo to forfeit $387,516, representing the gross proceeds of his sale of counterfeit merchandise.
U.S. Attorney Fishman praised special agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Joseph B. Shumofsky of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel: Jay V. Surgent Esq., Lyndhurst, N.J.
13-289Owner and Operators of Gun Shop in Hobbs Arraigned on Federal Firearms ChargesRead the Press Release
ALBUQUERQUE – A federal grand jury has returned a seven-count indictment charging Carlos Jonathan Cruz, 30, the owner of Hobbs Satellite Company Guns & Ammo, and his parents, Carlos Carlon Cruz, 59, and Norma M. Cruz, 56, with violations of the federal firearms laws. The three defendants were arraigned on the indictment today in Las Cruces federal court and entered not guilty pleas. They were released under pretrial supervision pending trial of the case.
Counts 1 and 2 of the indictment allege that on two occasions in April 2013, the three defendants made false statements in connection with the acquisition of firearms by an individual who was acting as a “straw purchaser” and buying firearms on behalf of others. Counts 3 and 4 charge Carlos Jonathan Cruz with unlawfully selling thousands of rounds of ammunition to an individual whom he had reason to believe was an alien illegally in the United States in April 2013 and May 2013. Count 5 charges Carlos Jonathan Cruz with unlawfully possessing an unregistered sawed-off shot gun and Counts 6 and 7 charge him with unlawfully possessing firearms with obliterated serial numbers in May 2013. The indictment alleges that all seven offenses were committed in Lea County, N.M.
Counts 1, 2, 6 and 7 of the indictment each carry a maximum possible sentence of five years in prison on conviction. Counts 3, 4 and 5 each carry a maximum penalty of ten years in prison on conviction. Charges in indictments are merely accusations and defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Drug Enforcement Administration and the Hobbs Police Department, and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
Ocean County, N.J., School Bus Driver Sentenced to 10 Years in Prison for Distributing Images of Child Sexual Abuse over InternetRead the Press Release
TRENTON, N.J. – An Ocean County, N.J., school bus driver was sentenced today to 120 months in prison for distributing images of child sexual abuse over the internet through his home computer, U.S. Attorney Paul J. Fishman announced.
Frank J. Bognar, 31, of Jackson, N.J., pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of distribution of child pornography.
According to documents filed in this case and statements made in court:
As early as Oct. 27, 2011, Bognar downloaded and distributed videos and images of child pornography on the Internet via a peer-to-peer file sharing network, through which others had access to the material on a shared drive. The FBI seized a computer containing videos and photographs of child sexual abuse, including images of sadistic and masochistic conduct against children, during a search of his residence on Feb. 9, 2012. He was arrested later that day.
As part of his plea, Bognar agreed to surrender six firearms and assorted ammunition that were seized on the day of his arrest.In addition to the prison term, Judge Pisano sentenced Bognar to 10 years of supervised release and ordered to pay $2,000 in restitution.
U.S. Attorney Fishman credited the FBI Cyber Crimes Task Force in New Jersey, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s sentencing. He also thanked the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato; the Jackson Township Police Department, under the direction of Chief of Police Matthew D. Kunz; and the Essex County Prosecutor’s Office task force officers, under the direction of Acting Prosecutor Carolyn Murray, for their assistance.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.
13-290
Defense counsel: Lisa Van Hoeck Esq., Assistant Federal Public Defender,Trenton
Newington Man Who Stole Firearms from Colebrook Residence Sentenced to 10 Years in PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MICHAEL KENNEDY, also known as “Chavo,” 26, of Newington, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 97 months of imprisonment, followed by 3 years of supervised release, for stealing, possessing and selling firearms. In issuing his sentence, Judge Chatigny gave KENNEDY credit for the 23 months he has already served in state prison for a total effective term of 120 months’ imprisonment.
According to court documents and statements made in court, on May 9, 2011, KENNEDY and Edward N. Ortiz, also known as “Heavy,” of New Britain, entered a residence in Colebrook and stole 12 firearms. The investigation has revealed that the majority of the stolen firearms were later sold to others, including street-level drug dealers.
Prior to May 2011, KENNEDY had been convicted of multiple felony offenses, including possession of narcotics, robbery, larceny and violation of a protection order.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
KENNEDY is currently detained. On February 5, 2013, he pleaded guilty to one count of possession of firearms by a previously convicted felon.
On September 27, 2012, Ortiz pleaded guilty to one count of conspiracy to steal firearms and possess stolen firearms, and one count of possession of firearms by a previously convicted felon. He awaits sentencing and is also detained.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Connecticut State Police and the New Britain Police Department. The case is being prosecuted by Assistant United States Attorney Jonathan S. Freimann.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Arrest: DEA agents executed a search warrant this morning in Huntington Station, Long Island. Adrian Bonilla, 34, of Huntington Station was placed under arrest. the search yielded 11 kilos of cocaine and $3 million in USC.Read the Press Release
New Arrest: DEA agents executed a search warrant this morning in Huntington Station, Long Island. Adrian Bonilla, 34, of Huntington Station was placed under arrest. The search yielded 11 kilos of cocaine and $3 million in USC.
Moon Twp. Man Sentenced to 6 Years in Prison, Ordered to Pay Restitution for Possessing Child PornographyRead the Press Release
PITTSBURGH, Pa. - An Allegheny County man has been sentenced in federal court to 72 months imprisonment, followed by 15 years supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today. In advance of sentencing, Winter agreed to make a $2,000 restitution payment to the victim identified as "Vicky".
United States District Judge Terrence F. McVerry imposed the sentence on Lawrence M. Winter, 45.
According to information presented to the court, on or about Nov. 2, 2010, Winter, a former Allegheny County Jail guard, was found to be in unlawful possession of thousands of still images and hundreds of videos depicting the sexual exploitation of children, many of whom had not attained the age of 12 years and some of whom were depicted bound.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police and the Moon Township Police Department for the investigation leading to the successful prosecution of Winter.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Marine Police Commander Found Guilty in Miramar Bribery SchemeRead the Press Release
A federal jury convicted former U. S. Marine Sergeant Luis Gilbert Menchaca of conspiracy and false claims in connection with a fraud and bribery scheme at Marine Corps Air Station (MCAS) Miramar in San Diego, California. As part of the scheme, Menchaca – while serving as a watch commander for the military police at Miramar – paid thousands of dollars of bribes to another Marine in order to obtain tens of thousands of dollars in fraudulent lodging reimbursements.
Last year, Menchaca was charged in an indictment with one count of conspiracy and three counts of false claims. The case was tried before a jury beginning on Monday, July 15, 2013. This afternoon, after less than 30 minutes of deliberations, the jury returned a verdict of guilty on all counts.
The evidence presented at trial showed that Menchaca first joined the Marine Corps in 1998, and after an initial four-year term, was discharged and entered the Marine Corps Reserve. From time to time thereafter, Menchaca, who had attained the rank of Sergeant, received orders placing him on active duty. In connection with his mobilization orders, Menchaca became eligible to receive certain travel payments, including lodging reimbursement and a per diem allowance, for the entire duration of his active duty service. These travel payments were in addition to the compensation and basic housing allowance (“BAH”) that he, like other Marines, received.
The evidence at trial showed that in May 2007, after being placed on active duty at Miramar, Menchaca entered into a conspiracy with another Miramar Marine, Manuel Ramos-Padilla. Ramos worked in an administrative office at Miramar that processed travel claims for reservists like Menchaca. In connection with the scheme, Menchaca and Ramos agreed to submit falsely completed travel vouchers that claimed reimbursement for thousands of dollars in lodging expenses that Menchaca had not incurred or paid. In addition to submitting these false travel vouchers, the conspirators submitted a fake rental receipt, for an address on Mission Village Drive in San Diego. In fact, the address listed on the fake receipt did not exist.
Menchaca and Ramos repeated the scheme month after month, for a period of ten months. In total, Menchaca submitted approximately $38,000 in false lodging claims. The proceeds of the scheme were deposited directly into Menchaca’s bank account every month.
In exchange for Ramos’s part in the conspiracy, Menchaca made cash payments to Ramos of up to $1,000 per month. On occasion, Menchaca also paid bribes to Ramos of up to $1,500 in the form of personal checks.
While on active duty with the Marine Corps, Menchaca spent over four years in the military police. During the time period of the fraud, Menchaca served as a watch commander within the military police. In that role, he supervised patrol supervisors, who in turn supervised lower-ranking military police officers. Menchaca had responsibilities for overseeing the enforcement of federal laws, including the Uniform Code of Military Justice; as well as for enforcing the California Vehicle Code and Miramar regulations.
United States Attorney Duffy stated, “Investigating and prosecuting bribery is one of our top priorities. With our nation’s military budget strained to the breaking point, we cannot afford to allow public corruption to drain much-needed U. S. Marine Corps resources.”
Menchaca’s case is set for sentencing on October 4, 2013, before U. S. District Judge Dana M. Sabraw.
Menchaca’s co-conspirator, Manuel Ramos-Padilla, pled guilty on April 9, 2013 to conspiring to commit bribery and make false claims. Ramos’s case is set for sentencing on August 9, 2013, also before Judge Sabraw.
DEFENDANTS
Case Number: 12cr5099-DMS Manuel Ramos-Padilla
Luis Gilbert Menchaca SUMMARY OF CHARGESConspiracy to commit bribery and make false claims, in violation of Title 18, United States Code, Section 371 (Menchaca and Ramos) - Maximum penalties: 5 years in prison, $250,000 fine, term of supervised release of three years, restitution, forfeiture, and $100 special assessment.
Three counts of false claims, in violation of Title 18, United States Code, Section 287 (Menchaca) - Maximum penalties (per count): Five years in prison, $250,000 fine, term of supervised release of three years, restitution, and $100 special assessment.
INVESTIGATING AGENCYNaval Criminal Investigative Service
MS-13 Members Convicted in Atlanta for Murders <br /> and Attempted MurdersRead the Press Release
After a four-week trial, a federal jury has convicted Miguel Alvarado-Linares, Ernesto Escobar, Dimas Alfaro-Granados and Jairo Reyna-Ozuna for committing multiple murders, attempted murders, armed robberies and firearms offenses in Gwinnett and DeKalb Counties.
The convictions were announced today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the Northern District of Georgia Sally Quillian Yates; Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE) – Homeland Security Investigations (HSI) in Atlanta; and Mark F. Giuliano, Special Agent in Charge of the FBI Atlanta Field Office.
Miguel Alvarado-Linares, aka “Joker,” 24, of Norcross, Ga.; Ernesto Escobar, aka “Pink Panther,” 30, of Norcross; Dimas Alfaro-Granados, aka “Toro,” 30, of Duluth, Ga.; and Jairo Reyna-Ozuna, aka “Flaco,” 28, of Norcross, were convicted late yesterday in U.S. District Court in the Northern District of Georgia.
“These four MS-13 members committed a host of brutal crimes that devastated countless lives in Northern Georgia,” said Acting Assistant Attorney General Raman. “As a result of the tireless work by the prosecutors and investigators who tackled this case, the defendants will be removed from the streets they have terrorized.”
“These defendants were the leaders of MS-13, an international gang known for its gratuitous murders,” said U.S. Attorney Yates. “They spread fear throughout the community by killing suspected rival gang members and others who cross their path. We will continue to work with our law enforcement partners to protect our streets from turning into battlegrounds.”“The defendants in this case indiscriminately brought murderous violence against rival gang members and innocent civilians alike,” said Brock D. Nicholson, Special Agent in Charge of HSI Atlanta. “HSI is proud to continue to partner with the FBI and the U.S. Attorney’s Office to target violent transnational gang members who threaten the safety of Atlanta communities.”
“Removing these violent gang members from the streets of metro Atlanta not only makes for a safer community but further weakens the Southeastern U.S. roots of this international criminal enterprise known as MS-13,” said Special Agent in Charge Mark F. Giuliano of the FBI Atlanta Field Office. “The FBI will continue to work with its various law enforcement partners in targeting this group, and others like them, in a unified and effective manner.”
According to the charges and other information presented in court, MS-13 is an international gang that has operated in the Atlanta area since at least 2005. During the course of this investigation, which ended in 2010, more than 75 MS-13 members were arrested, charged and/or deported. MS-13 members were organized into “cliques,” or groups, but they operated under the larger umbrella of MS-13. Each clique had a leader, usually referred to as “the first word,” who conducted weekly meetings, where members discussed their crimes against rival gang members and their plans to retaliate against their rivals. The clique leader collected dues from the gang members and used the money to buy guns and post bail for jailed members. Some of the money was sent back to the MS-13 leaders in El Salvador and Honduras. Clique leaders communicated with MS-13 leaders in their home countries to update them on gang activities in the Atlanta area. The gang members staked out Gwinnett and DeKalb Counties as their home territory, where they committed murders, attempted murders and armed robberies. They also sold cocaine as part of their gang activity.
The evidence presented at trial showed that the defendants committed the following crimes:
• Alvarado-Linares and Alfaro-Granados, along with another gang member, killed Lal Ko in October 2006. Ko was a fellow MS-13 member, but Alvarado-Linares, one of the gang leaders, thought that Ko was cooperating with police and ordered his murder.
• In December 2006, when another MS-13 gang member wanted to quit the gang, Alvarado-Linares and Alfaro-Granados ordered him to kill a rival gang member as a condition of leaving MS-13. On Christmas Eve 2006, that gang member, following orders, shot at a car on Highway 316 that he believed contained rival gang members. The passenger, Angel Gonzalez, was murdered. He was 20 years old.
• On New Year’s Eve 2006, Alvarado-Linares was at an apartment complex where he exchanged gang hand signs and insults with two members of the rival gang SUR-13. Alvarado-Linares then pulled out a gun and shot the men.
• In August 2007, Escobar got into a scuffle with two teenagers at a Shell gas station in Gwinnett County. Escobar reported the incident to Reyna-Ozuna, who was the gang leader at the time. Reyna-Ozuna gave Escobar a .45 caliber semi-automatic handgun to retaliate. Escobar went back to the Shell station and shot and killed one of the teenagers as he was painting lines in the parking lot. The victim was only 16 years old.
• In October 2007, Alvarado-Linares was in Gwinnett County and came across a suspected member of the 18th Street gang. Alvarado fired a shotgun and killed the victim, who was 15 years old.
Alvarado-Linares, Escobar and Alfaro-Granados were convicted of RICO conspiracy involving murder, which carries a maximum penalty of life in prison. Reyna-Ozuna was convicted of RICO conspiracy, which carries a maximum penalty of 20 years in prison. Alvarado-Linares, Escobar and Alfaro-Granados were also convicted of committing violent crimes in aid of racketeering, which carries a mandatory sentence of life in prison. All of the defendants were convicted of firearms offenses, which carry a sentence of up to and including life in prison. There is no parole in the federal system.
The sentencing for the four defendants will be scheduled at a later date before U.S. District Judge Richard W. Story in the Northern District of Georgia.
This case is being investigated by Special Agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Federal Bureau of Investigation, with assistance from the U.S. Marshals Service, Gwinnett County Police Department, DeKalb County Police Department, Norcross Police Department, Chamblee Police Department and Gwinnett County Sheriff’s Office.
Assistant U.S. Attorneys Paul R. Jones and Kim S. Dammers of the Northern District of Georgia and Trial Attorney Joseph K. Wheatley of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
MS-13 Members Convicted for Murders and Attempted MurdersRead the Press Release
Gang Wreaked Havoc in Gwinnett and DeKalb Counties
ATLANTA – After a four-week trial, a federal jury has convicted Miguel Alvarado-Linares, Ernesto Escobar, Dimas Alfaro-Granados, and Jairo Reyna-Ozuna, for committing multiple murders, attempted murders, armed robberies, and firearms offenses in Gwinnett and DeKalb counties.
“The defendants were the leaders of MS-13, an international gang known for its gratuitous murders,” said United States Attorney Sally Quillian Yates. “They spread fear throughout the community by killing suspected rival gang members and others who cross their path. We will continue to work with our law enforcement partners to protect our streets from turning into battlegrounds.”
“These four MS-13 members committed a host of brutal crimes that devastated countless lives in Northern Georgia,” said Acting Assistant Attorney General Raman. “As a result of the tireless work by the prosecutors and investigators who tackled this case, the defendants will be removed from the streets they have terrorized.”
“The defendants in this case indiscriminately brought murderous violence against rival gang members and innocent civilians alike,” said Brock D. Nicholson, Special Agent in Charge of HSI Atlanta. “HSI is proud to continue to partner with the FBI and the U.S. Attorney’s Office to target violent transnational gang members who threaten the safety of Atlanta communities.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, said: “Removing these violent gang members from the streets of metro Atlanta not only makes for a safer community but further weakens the Southeastern U.S. roots of this international criminal enterprise known as MS-13. The FBI will continue to work with its various law enforcement partners in targeting this group, and others like them, in a unified and effective manner.”
According to United States Attorney Yates, the charges and other information presented in court: MS-13 is an international gang that has operated in the Atlanta area since at least 2005. During the course of this investigation, which ended in 2010, more than 75 MS-13 members had been arrested, charged, and/or deported. MS-13 members were organized into “cliques,” or groups, but they operated under the larger umbrella of MS-13. Each clique had a leader, usually referred to as “the first word,” who conducted weekly meetings. At these meetings, members discussed their crimes against rival gang members and their plans to retaliate against their rivals. The clique leader collected dues from the gang members. The leaders used the money to buy guns and post bail for jailed members. Some of the money was sent back to the MS-13 leaders in El Salvador and Honduras. Clique leaders communicated with MS-13 leaders in their home countries to update them on gang activities in the Atlanta area. The gang members staked out Gwinnett and DeKalb Counties as their home territory, where they committed murders, attempted murders, and armed robberies. They also sold cocaine as part of their gang activity. The evidence presented at trial showed that the defendants committed the following crimes:
- Alvarado-Linares and Alfaro-Granados, along with another gang member, killed Lal Ko in October 2006. Ko was a fellow MS-13 member, but Alvarado-Linares, one of the gang leaders, thought that Ko was cooperating with police and ordered his murder.
- In December 2006, when another MS-13 gang member wanted to quit the gang, Alvarado-Linares and Alfaro-Granados ordered him to kill a rival gang member as a condition of leaving MS-13. On Christmas Eve 2006, that gang member, following orders, shot at a car on Highway 316 that he believed contained rival gang members. The passenger, Angel Gonzalez, was murdered. He was 20 years old.
- On New Year’s Eve 2006, Alvarado-Linares was at an apartment complex where he exchanged gang hand signs and insults with two members of the rival gang SUR-13. Alvarado-Linares pulled out a gun and shot the men.
- In August 2007, Escobar got into a scuffle with two teenagers at a Shell gas station in Gwinnett County. Escobar reported the incident to Reyna-Ozuna, who was the gang leader at the time. Reyna-Ozuna gave Escobar a .45 caliber semi-automatic handgun to retaliate. Escobar went back to the Shell station and shot one of the teenagers as he was painting lines in the parking lot. The victim, David Hernandez, was only 16 years old.
- In October 2007, Alvarado-Linares was in Gwinnett County and came across a suspected 18th Street member. Alvarado fired a shotgun and killed Pablo Archila-Baires. Archila-Baires was only 15 years old.
The sentencing for Miguel Alvarado-Linares, a/k/a Joker, 24, of Norcross, Ga., Ernesto Escobar, a/k/a Pink Panther, 30, of Norcross, Ga., Dimas Alfaro-Granados, a/k/a Toro, 30, of Duluth, Ga., and Jairo Reyna-Ozuna, a/k/a Flaco, 28, of Norcross, Ga., will be scheduled at a later date before United States District Judge Richard W. Story. Alvarado-Linares, Escobar and Alfaro-Granados were convicted of RICO conspiracy involving murder, which carries a sentence up to and including life. Reyna-Ozuna was convicted of RICO conspiracy, which carries a sentence of up to 20 years. Alvarado-Linares, Escobar and Alfaro-Granados were also convicted of committing Violent Crime in Aid of Racketeering, which carries a mandatory sentence of life in prison. All of the defendants were convicted of firearms offenses, which carry a sentence of up to and including life. Parole has been abolished in the federal system.
This case is being investigated by Special Agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Federal Bureau of Investigation, with assistance from the U.S. Marshals Service, Gwinnett County Police Department, DeKalb County Police Department, Norcross Police Department, Chamblee Police Department, and Gwinnett County Sheriff’s Office.
Assistant United States Attorneys Paul R. Jones and Kim S. Dammers and U.S. Department of Justice, Organized Crime and Gang Section, Trial Attorney Joseph K. Wheatley are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the Home Page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Lynn Man Sentenced to 15 Years on Drug, Firearm ChargesInvestigation Revealed Plot to Kill A Lynn Police OfficerRead the Press Release
BOSTON – A Lynn man, who discussed murdering a Lynn police officer, was sentenced late yesterday to 188 months in prison.
U.S. District Judge Denise J. Casper sentenced Modesto Cruz, 37, to 188 months in prison, followed by four years of supervised release. In March, Cruz pleaded guilty to conspiracy to distribute more than 100 grams of heroin, distribution of heroin, and being a felon in possession of a firearm.
In 2012, while Cruz was on pretrial release from a 2010 Lynn gun arrest, a cooperating witness working with the FBI’s North Shore Gang Task Force made four controlled buys of over 100 grams of heroin from Cruz. During the course of those recorded buys, Cruz and the cooperating witness talked about Cruz’s plan to kill one of the Lynn police officers that had arrested him on the gun charge. An undercover law enforcement officer, posing as a hitman, was ultimately introduced to Cruz by the cooperating witness. Cruz and the undercover talked about the price and logistics of the hit on the police officer. Cruz was arrested the next day.
United States Attorney Carmen M. Ortiz; Jeffrey S. Sallet, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Essex County District Attorney Jonathan Blodgett; Colonel Timothy Alben, Superintendent of the Massachusetts State Police; Lynn Police Chief Kevin Coppinger; and Essex County Sheriff Frank G. Cousins, Jr. made the announcement today.
The case was investigated by the FBI’s North Shore Gang Task Force, which consists of the FBI, the ATF, the Massachusetts State Police, the Lynn, Chelsea and Revere Police Departments, and the Essex County Sheriff’s Department. It was prosecuted by Assistant U.S. Attorneys in Ortiz’s Organized Crime and Gang Strike Force Unit.