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4 September 2013
Pocatello Man Sentenced to 70 Months in Prison for Selling MethRead the Press Release
POCATELLO – Loyal Dean Williams, 38, of Pocatello, Idaho, was sentenced yesterday in United States District Court to 70 months in prison for distributing methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Williams to serve four years of supervised release.
On June 4, 2013, Williams admitted in court that on September 14, 2010, he met with an individual in Idaho Falls, Idaho, and sold that individual 6.8 grams of methamphetamine for $1,000. The substance was tested by DEA’s Western Laboratory and confirmed to contain 6.7 grams of actual methamphetamine. On October 5, 2010, Williams again met with and sold the same individual 6.3 grams of methamphetamine for $900. Testing confirmed the substance contained 6.1 grams of actual methamphetamine.
The case is the result of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), led by the Federal Bureau of Investigation and Idaho State Police. Other federal agencies participating in the OCDETF program include U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), and U.S. Marshals Service.
Pine Ridge Woman Sentenced for TheftRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, woman convicted of Theft from Indian Tribal Organization was sentenced on August 29, 2013, by Chief Judge Jeffrey L. Viken, United States District Court.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Sarah B. Collins prosecuted the case.
Doreen Two Bulls, a/k/a Doreen Brown, a/k/a Dee Dee Brown, age 55, was sentenced to 1 year of probation and ordered to pay $100 to the Federal Crime Victims Fund. She was also ordered to pay $9,528.06 in restitution to the Oglala Sioux Tribe.
Between August 2010 and January 2011, Two Bulls, while employed as the Oglala Sioux Tribe Property and Supply Director, stole checks issued to tribal organizations, changed the face of the checks to include her name, and endorsed them. She then took the forged checks to various locations, cashed them, and used the money for personal purchases. She pled guilty on March 13, 2013.Petersburg Man Sentenced to Twelve Years for Multi-Kilo Heroin and Cocaine DistributionRead the Press Release
RICHMOND, Va. - Ronald Harper, Jr., 48, of Petersburg, Virginia was sentenced today to 144 months in prison for conspiracy to distribute heroin. He was also ordered to forfeit $150,000.00 in United States currency, and a Smith and Wesson .40 caliber firearm and assorted ammunition.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; John I. Dixon, III, Chief of Police for the Petersburg Police Department; and Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field office, made the announcement after the sentence was imposed today by United States District Judge James R. Spencer.
In the Statement of Facts filed at the time of his plea hearing in May, Harper admitted that he had conspired to distribute between 1 and 3 kilograms of heroin, and between 2 and 3.5 kilograms of cocaine from January 2009 through March 6, 2013. Harper admitted to purchasing heroin every month, for redistribution into the Petersburg, Virginia community.
At the time of his arrest on March 6, 2013, Harper was in possession of more than $7000.00 in cash, which he acknowledged was proceeds from his drug trafficking activities. A search warrant executed at a Petersburg, Virginia residence that was known to be utilized by Harper for distribution of narcotics resulted in the recovery of a six-ton hydraulic press, a suitcase full of drug packaging materials, digital scales; and narcotics, including heroin, marijuana, and cocaine.
This case was investigated by the Petersburg Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Angela Mastandrea-Miller prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Parmelee Man Charged with Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmelee, South Dakota, man has been indicted by a federal grand jury.
Joseph Morrisette, age 53, was indicted on August 21, 2013, for Child Abuse. Morrisette appeared before U.S. Magistrate Judge Mark A. Moreno on September 3, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, an additional 2 years of supervised release upon revocation, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Morrisette is presumed innocent until and unless proven guilty.
The Indictment alleges that on July 9, 2013, Morrisette struck a child and exposed three other children to danger.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Timothy M. Maher is prosecuting the case.
Morrisette was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.Parmalee Man Pleads Guilty to Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that William Rahn, age 27, of Parmelee, South Dakota, appeared before U.S. District Judge Roberto A. Lange on August 29, 2013, and pled guilty to a Superseding Information that charged him with Assaulting, Resisting and Impeding a Federal Officer.
The maximum penalty upon conviction is 8 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The charge stems from an incident wherein Rahn was driving erratically, attempting to elude Bureau of Indian Affairs police officers on the Rosebud Sioux Indian Reservation. He drove his vehicle directly at a parked police unit, and came within feet of hitting the vehicle. When Rahn finally stopped his vehicle on a dirt road, he resisted officers’ attempts to pull him from the vehicle and the resistance involved physical contact with an officer. Rahn was tazered whereupon he became compliant.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Rahn was remanded to the custody of the U.S. Marshals Service pending sentencing, which has been set for November 21, 2013.Oglala Woman Charged with Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that an Oglala, South Dakota, woman has been indicted by a federal grand jury for allegedly operating and crashing a motor vehicle while under the influence on May 19, 2013, near Loneman, South Dakota. The crash resulted in the death of Gillard Good Voice Flute.
Good Voice Flute was remanded to the custody of the U.S. Marshals Service. A trial date has been set for November 5, 2013.
Valerie Good Voice Flute, age 36, was indicted on August 27, 2013, for Involuntary Manslaughter. Good Voice Flute appeared before U.S. Magistrate Judge Veronica L. Duffy on August 29, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 8 years of imprisonment and a $250,000 fine. The charge is merely an accusation and Good Voice Flute is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.Norris Man Charged with Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Norris, South Dakota, man has been indicted by a federal grand jury on two counts of Sexual Abuse of a Minor.
Jeremy Eagle Bear, age 23, was indicted on August 21, 2013. Eagle Bear appeared before U.S. Magistrate Judge Mark A. Moreno on August 30, 2013, and pled not guilty to the Indictment.
The maximum penalty on each count upon conviction is 15 years of imprisonment and/or a $250,000 fine, 5 years of supervised release, an additional 2 years of supervised release upon revocation, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to allegations that in 2011 Eagle Bear had sex with a minor on two different occasions, which occurred on the Rosebud Sioux Indian Reservation.
The charges are merely accusations, and Eagle Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Eagle Bear was remanded to the custody of the U.S. Marshals Service. A trial date has been set for November 5, 2013.Norris Man Charged with Assault with A Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Norris, South Dakota, man has been indicted by a federal grand jury.
Chauncy Crow Dog, age 19, was indicted on August 21, 2013, for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury. Crow Dog appeared before U.S. Magistrate Judge Mark A. Moreno on August 28, 2013, and pled not guilty to the Indictment.
The maximum penalty on each count upon conviction is 10 years of imprisonment and/or a $250,000 fine; 3 years of supervised release; an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stem from an incident on August 14, 2013, when Crow Dog allegedly assaulted two individuals in the parking lot of the Paul Mart convenience store in Rosebud. The charges are merely accusations, and Crow Dog is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Crow Dog was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.New Orleans Man, George Snyder, Charged with Crimes Involving the Sexual Exploitation of ChildrenRead the Press Release
GEORGE SNYDER, age 36, of New Orleans, was charged in a one-count bill of information today for crimes involving the sexual exploitation of children, announced United States Attorney Dana J. Boente.
If convicted, SNYDER faces up to a maximum of 20 years in prison, followed by up to a life term of supervised release, and a $250,000 fine. He can also be required to register as a sex offender.
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 United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gove/psc. For more information about internet safety, please visit www.usdoj.gov/psc and click on the tab “resources.”
United States Attorney Boente reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by special agents from the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant United States Attorney Jordan Ginsberg.
(Download Bill of Information )
New Haven Man Sentenced to More Than 15 Years in Prison for Robbing Killingworth BankRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MARCUS DWYER, 41, of New Haven, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 188 months of imprisonment, followed by three years of supervised release, for robbing a Killingworth bank.
According to court documents and statements made in court, in the afternoon of August 6, 2012, Jennifer Jacques drove DWYER and Dario Pabey to the TD Bank on Route 81 in Killingworth. DWYER and Pabey then entered the bank wearing masks and demanded that everyone lie on the floor. DWYER pointed a gun at bank employees and customers and then jumped over the teller door and ordered the employees to open the vault. He accompanied the employees to the vault while Pabey controlled the lobby area. Pabey used zip ties to tie the hands of one bank employee and demanded that the customers give him their wallets, mobile phones and car keys. As Pabey was starting to restrain a second person with zip ties, DWYER ran past him with a bag of money that he had taken from the vault. Pabey followed and grabbed a patron who had surrendered his car keys to him and forced him out of the bank. DWYER and Pabey fled in the customer’s vehicle, which was abandoned a short distance from the bank at a pre-planned location where Jacques was waiting. Jacques then drove DWYER and Pabey away from the bank while they changed out of the clothes they had worn during the robbery.
The investigation revealed that $43,573 was stolen from the bank and its patrons during the robbery.
DWYER has been detained since his arrest on September 19, 2012. On May 13, 2013, he pleaded guilty to one count of bank robbery.
Pabey pleaded guilty to the same charge and, on May 24, 2013, he was sentenced to 180 months of imprisonment. Jacques also has pleaded guilty and awaits sentencing.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut State Police. The case is being prosecuted by Assistant United States Attorneys Ray Miller and Sarala Nagala.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Montgomery Woman Sentenced to Jail for Role in Identity Theft Tax SchemeRead the Press Release
Montgomery, Alabama - Angelique Djonret of Montgomery, Ala., was sentenced today to serve two years in prison for her involvement in a million dollar identity theft tax fraud scheme, announced George L. Beck, U.S. Attorney for the Middle District of Alabama. Angelique Djonret pleaded guilty to identity theft on April 19, 2013.
According to court documents, between October 2009 and April 2012, Angelique Djonret’s sister, Antoinette Djonret, orchestrated a tax refund scheme using stolen identities to file over 1,000 false tax returns that fraudulently claimed over $1.7 million in tax refunds. Antoinette Djonret obtained stolen identities from multiple sources, including Alabama state databases. She also established an elaborate network for laundering the refund money. Antoinette Djonret recruited her sister, Angelique, into the conspiracy, whose role was to obtain prepaid debit cards in her name and others’ names for the purpose of receiving the fraudulent tax refunds. Antoinette Djonret and her co-conspirators used the cards to obtain the refund proceeds. Angelique Djonret also assisted in the filing of false tax returns using stolen identities. Angelique Djonret’s sister, Antoinette, was previously sentenced to 12 years in prison for her part in this scheme.
This case was investigated by Special Agents of Internal Revenue Service - Criminal Investigation Division and prosecuted by Tax Division Trial Attorneys Jason H. Poole and Michael Boteler, and Assistant U.S. Attorney Todd Brown.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Mission Man Indicted on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Domestic Assault by a Habitual Offender.
Hubert Desersa, age 23, was indicted on July 17, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 3, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to alleged incidents that occurred in Todd County in May 2013 when Desersa assaulted the victim with dangerous weapons, including a knife, causing serious bodily injury. The charges are merely accusations and Desersa is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Desersa was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for October 22, 2013.Michigan Man Pleads Guilty to Armed Robbery of Stillwater BankRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 66-year-old man from Cheboygan, Michigan, pleaded guilty to robbing the U.S. Bank in Stillwater. David Michael Tyler specifically pleaded guilty to one count of armed bank robbery. Tyler, who was indicted on July 8, 2013, entered his plea before United States District Chief Judge Michael J. Davis.
In his plea agreement, Tyler admitted that on June 8, 2013, at approximately 9:30 a.m., he entered the US Bank in Stillwater, wearing a fake beard and glasses and carrying a briefcase and backpack. Tyler placed the briefcase on a banker’s desk and showed him what appeared to be a homemade bomb inside. He then gave the banker a note, which demanded $200,000. It also threatened that if the demands were not met, Tyler would detonate the bomb.
While the banker placed the money into Tyler’s backpack, Tyler admittedly pushed a button on his cell phone, warning the banker that he had ten minutes before the bomb went off. Tyler then grabbed the bag and fled the premises, leaving the briefcase and purported bomb on the banker’s desk. Tyler was apprehended a short distance from the bank, after officers witnessed him throwing the backpack into a pickup truck. All of the money was recovered.For his crime, Tyler faces a potential maximum penalty of 25 years in prison. Judge Davis will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Stillwater Police Department, the St. Paul Police Department, and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Kevin S. Ueland.
Meriden Man Involved in Middlefield Home Invasion Sentenced to More Than 10 Years in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that SHANE LEVERETTE, also known as Shane Baltas, 44, formerly of Meriden, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 126 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm and for violating the conditions of his supervised release from a previous federal conviction.
According to court documents and statements made in court, on February 16, 2011, at approximately 10:40 p.m., LEVERETTE and an accomplice, who was armed with a handgun, entered a residence in Middlefield for the purpose of stealing money and drugs. LEVERETTE and his accomplice were dressed in black and wearing baseball hats with a DEA logo and gloves, and had bandannas covering their faces. Inside the residence, LEVERETTE located and stole a semi-automatic rifle. He and his accomplice then threatened two adults with their firearms and directed them to remain seated on the bed. After demanding money, the accomplice struck a male victim with the handgun, causing the victim’s head to bleed, and the handgun discharged. LEVERETTE and his accomplice then searched the bedroom for drugs and money.
After receiving a 911 call, the Connecticut State Police and Middletown Police Department arrived at the scene and surrounded the residence. LEVERETTE and his accomplice surrendered and were arrested and charged with state offenses. Law enforcement officers also seized the accomplice’s handgun and the semi-automatic rifle that LEVERETTE had stolen.
Prior to February 2011, LEVERETTE had sustained multiple federal and state felony convictions. 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. The rifle that LEVERETTE possessed was manufactured in Hungary.
In February 1999, LEVERETTE was sentenced in federal court in Massachusetts to 151 months of imprisonment for racketeering, narcotics and firearm offenses. He was released from federal prison on April 23, 2007, and was serving a five-year term of supervised release at the time of the Middlefield home invasion.
On April 30, 2013, LEVERETTE pleaded guilty to one count of possession of a firearm by a previously convicted felon. On that date, he also admitted to violating the conditions of her supervised release.
Judge Hall sentenced LEVERETTE to 96 months of imprisonment for illegally possessing a firearm, and a consecutive 30 months of imprisonment for violating his supervised release.
LEVERETTE has been detained since his arrest. His accomplice was prosecuted in state court.
This matter was investigated by the Bureau of Alcohol Tobacco and Firearms, the Connecticut State Police and the Middletown Police Department. The case was prosecuted by Assistant United States Attorney Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Media AdvisoryRead the Press Release
PLATTSBURGH, NEW YORK - United States Attorney Richard S. Hartunian, the District Attorneys of Clinton, Franklin and St. Lawrence Counties, the Massena Police Department, the St. Lawrence County Sheriff’s Department, the Department of Homeland Security, the Saint Regis Mohawk Tribal Police Department, the New York State Police, the United States Customs and Border Protection Office of Air and Marine, the United States Customs and Border Protection Office of Field Operations, the Drug Enforcement Administration, the Royal Canadian Mounted Police, the New York Attorney General’s Office, the Oneida Indian Nation Police and the Customs and Border Protection United States Border Patrol will hold a press conference Thursday, September 5, 2013 at 2:00 p.m. at the Massena Town Hall, 60 Main Street, Room #30, Massena, New York to announce a significant north country law enforcement operation.
No further information will be available in advance of the press conference.
McLaughlin Man Charged with Kidnapping, Assault with Intent to Commit Any Felony and Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury.
Lemar Chasing Hawk, age 53, was indicted on August 21, 2013, for Kidnapping, Assault with Intent to Commit Any Felony, and Domestic Assault By An Habitual Offender. He appeared before U.S. Magistrate Judge William D. Gerdes on August 29, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction of the kidnapping charge is any term of years up to life imprisonment and 5 years of supervised release. The assault charge carries a maximum penalty of 10 years of imprisonment, and the habitual offender charge carries a maximum of 5 years' imprisonment. All counts (unless stated otherwise) include a possible $250,000 fine, 3 years of supervised release, an additional 2 years of supervised release upon revocation, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stem from alleged repeated assaults of an individual, who at the time of the assaults was the spouse or intimate partner of Chasing Hawk. One incident also alleges the victim was dragged, against her will, to another location to be assaulted.
The charges are merely accusations, and Chasing Hawk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Chasing Hawk was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.Maryland Woman Sentenced to 48 Months in Prison in Mortgage Fraud Scheme That Cost Lenders More Than $900,000-She and Others Used Straw Buyers to Generate Fraudulent Loans; - Actions Led to Evictions of Some Tenants-Read the Press Release
WASHINGTON - LaFrances Dudley O’Neal, 49, of Clinton, Md., was sentenced today to 48 months in prison for her part in a mortgage fraud scheme that cost lenders more than $900,000. She was ordered to begin serving her sentence immediately.
The sentence was announced by U.S. Attorney Ronald C. Machen Jr., Gary R. Barksdale, Inspector in Charge, Washington Division, U.S. Postal Inspection Service; Cary Rubenstein, Special Agent in Charge of the Mid-Atlantic Region of the Office of Inspector General of the U.S. Department of Housing and Urban Development; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and William P. White, Commissioner of the District of Columbia Department of Insurance, Securities and Banking.
O’Neal was found guilty by the jury on March 27, 2013 of four felony charges, including conspiracy and bank fraud, after a two-week trial in the U.S. District Court for the District of Columbia. She was sentenced by the Honorable Reggie B. Walton. Judge Walton also ordered her to pay $964,503 in restitution and the same amount in a money judgment of forfeiture. In addition, he ordered 60 months of supervised release following the prison term.
According to the government’s evidence at trial, from June 2006 to August 2009, O’Neal and others identified District of Columbia area homes and straw buyers to obtain mortgages through false loan applications, forged documents, and fraudulent settlements. Co-conspirators acted as a mortgage broker, title and escrow agent, and other professionals to assist O’Neal with tricking the mortgage lenders and banks into lending $2.6 million in mortgage loans on the belief that the straw buyers had the means and the willingness to pay the mortgages.
Every one of the mortgages fell into default, and the lenders were forced to foreclosure with an aggregate loss to the lenders in excess of over $900,000.
According to the government’s evidence, the title and escrow companies paid O’Neal from the fraudulently obtained loan proceeds, at times using fraudulent “invoices” which falsely stated that renovation work had recently been completed and that money was due at settlement. As a result of these false invoices and inaccurate settlement statements, title and escrow agents turned over more than $400,000 of fraudulent loan proceeds to O’Neal.
In spite of promising the straw buyers that she would pay the mortgage and in spite of receiving rental income from the D.C. Housing Authority and their client tenants, O’Neal failed to pay the mortgages on all of these properties and the lenders foreclosed on the houses with the result being the tenants were evicted.
Four others earlier pled guilty to a charge of conspiracy to commit bank fraud and mail fraud for their roles in the scheme and related schemes.
“Ms. O’Neal defrauded lenders out of $900,000 in a mortgage fraud scheme that left behind a trail of foreclosed homes and evicted tenants,” said U.S. Attorney Machen. “She conspired with crooked mortgage brokers and title agents to rip off lenders and banks to stuff her own pockets with hundreds of thousands of dollars. This prison sentence is just punishment for a crime that inflicts tremendous economic damage on everyone pursuing the dream of homeownership and threatens the stability of our financial system.”
Fraud schemes such as this one negatively impact individuals, banks and mortgage lenders, and even our nation's economy,”said Inspector in Charge Barksdale. “By investigating mortgage fraud, Postal Inspectors seek justice for these victims, shield others from falling prey to fraudsters, and ensure the integrity of the U.S. mail.”
“What we have here is a group of mortgage industry professionals that perpetrated a sophisticated mortgage fraud for profit scheme that was designed to enrich themselves at the expense of lenders,” said Cary Rubenstein, Special Agent in Charge of the Mid-Atlantic Region of the U.S. Housing and Urban Development’s Office of the Inspector General. “The efforts that brought us the verdict in this case demonstrate that when law enforcement is made aware of such despicable schemes, we will commit the necessary resources to make sure that the fraudsters are brought to justice and are no longer in a position to engage in fraud. We wish to thank the U.S. Attorney’s Office and our investigative partners at the U.S. Postal Inspection Service, FBI and the D.C. Department of Insurance, Securities and Banking for their steadfast efforts.”
“In concert with her co-conspirators and through false loan applications, forged documents and fraudulent statements, Ms. O’Neal acted as a con artist when she caused a loss of more than $900,000 to mortgage lenders and banks who were supporting homeownership in the District of Columbia,” said Assistant Director in Charge Parlave. “The FBI recognizes the negative impact that mortgage fraud and foreclosures have on our local economy and in our community and, together with our law enforcement partners, we will continue to investigate and stop those who seek to defraud lenders, banks and homeowners.”
“Today’s sentencing sends a clear message that if you deceive District residents into fraudulent mortgages, you will be caught and there are serious consequences,” said Commissioner White. “I applaud the joint efforts by the investigators in our department, the U.S. Attorney’s Office and other federal agencies to bring down this scheme and prosecute these bad actors.”
The others who pled guilty include: Akinola George, 44, of Washington, D.C.; Orpel Tucker, 44, of Washington, D.C., Donald M. Ramsey, 46, a mortgage broker from Alexandria, Va., and Tania Firmani, 46, a title and escrow agent from Chesapeake Beach, Md.
George was sentenced in January 2012 to a 40-month prison term. Tucker was sentenced in May 2013 to a 37-month prison term. Ramsey was sentenced in August 2013 to five years of probation, including 20 weekends in jail; restitution of $535,435; 200 hours community service; and an order of forfeiture for $366,000. Firmani was sentenced in May 2013 to 15 months of incarceration.
In announcing the sentence, U.S. Attorney Machen, Inspector in Charge Barksdale, Special Agent in Charge Rubenstein, Assistant Director in Charge Parlave and Commissioner White praised those who worked on the case from the U.S. Postal Inspection Service, U.S. Department of Housing and Urban Development - Office of Inspector General, the FBI’s Washington Field Office, the District of Columbia Department of Insurance, Securities, and Banking, and the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including: Financial Analyst Crystal Boodoo; Paralegal Specialists Donna Galindo, Corrine Laxman, Diane Hayes, Lenisse Edloe, Shanna Hays, and Nicole Wattelet; former Paralegal Specialist Sarah Reis; Litigation Services Specialist Kimberly Smith; Law Interns Nicole Audet and Jason Navia, and Assistant U.S. Attorney Diane Lucas of the Asset Forfeiture and Money Laundering Section. Finally, they acknowledged the work of Assistant U.S. Attorney Virginia Cheatham, who prosecuted the case.
13-304Maryland Woman Sentenced to 48 Months in Prison in Mortgage Fraud Scheme That Cost Lenders More Than $900,000-She and Others Used Straw Buyers to Generate Fraudulent Loans; - Actions Led to Evictions of Some Tenants-Read the Press Release
WASHINGTON - LaFrances Dudley O’Neal, 49, of Clinton, Md., was sentenced today to 48 months in prison for her part in a mortgage fraud scheme that cost lenders more than $900,000. She was ordered to begin serving her sentence immediately.
The sentence was announced by U.S. Attorney Ronald C. Machen Jr., Gary R. Barksdale, Inspector in Charge, Washington Division, U.S. Postal Inspection Service; Cary Rubenstein, Special Agent in Charge of the Mid-Atlantic Region of the Office of Inspector General of the U.S. Department of Housing and Urban Development; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and William P. White, Commissioner of the District of Columbia Department of Insurance, Securities and Banking.
O’Neal was found guilty by the jury on March 27, 2013 of four felony charges, including conspiracy and bank fraud, after a two-week trial in the U.S. District Court for the District of Columbia. She was sentenced by the Honorable Reggie B. Walton. Judge Walton also ordered her to pay $964,503 in restitution and the same amount in a money judgment of forfeiture. In addition, he ordered 60 months of supervised release following the prison term.
According to the government’s evidence at trial, from June 2006 to August 2009, O’Neal and others identified District of Columbia area homes and straw buyers to obtain mortgages through false loan applications, forged documents, and fraudulent settlements. Co-conspirators acted as a mortgage broker, title and escrow agent, and other professionals to assist O’Neal with tricking the mortgage lenders and banks into lending $2.6 million in mortgage loans on the belief that the straw buyers had the means and the willingness to pay the mortgages.
Every one of the mortgages fell into default, and the lenders were forced to foreclosure with an aggregate loss to the lenders in excess of over $900,000.
According to the government’s evidence, the title and escrow companies paid O’Neal from the fraudulently obtained loan proceeds, at times using fraudulent “invoices” which falsely stated that renovation work had recently been completed and that money was due at settlement. As a result of these false invoices and inaccurate settlement statements, title and escrow agents turned over more than $400,000 of fraudulent loan proceeds to O’Neal.
In spite of promising the straw buyers that she would pay the mortgage and in spite of receiving rental income from the D.C. Housing Authority and their client tenants, O’Neal failed to pay the mortgages on all of these properties and the lenders foreclosed on the houses with the result being the tenants were evicted.
Four others earlier pled guilty to a charge of conspiracy to commit bank fraud and mail fraud for their roles in the scheme and related schemes.
“Ms. O’Neal defrauded lenders out of $900,000 in a mortgage fraud scheme that left behind a trail of foreclosed homes and evicted tenants,” said U.S. Attorney Machen. “She conspired with crooked mortgage brokers and title agents to rip off lenders and banks to stuff her own pockets with hundreds of thousands of dollars. This prison sentence is just punishment for a crime that inflicts tremendous economic damage on everyone pursuing the dream of homeownership and threatens the stability of our financial system.”
Fraud schemes such as this one negatively impact individuals, banks and mortgage lenders, and even our nation's economy,”said Inspector in Charge Barksdale. “By investigating mortgage fraud, Postal Inspectors seek justice for these victims, shield others from falling prey to fraudsters, and ensure the integrity of the U.S. mail.”
“What we have here is a group of mortgage industry professionals that perpetrated a sophisticated mortgage fraud for profit scheme that was designed to enrich themselves at the expense of lenders,” said Cary Rubenstein, Special Agent in Charge of the Mid-Atlantic Region of the U.S. Housing and Urban Development’s Office of the Inspector General. “The efforts that brought us the verdict in this case demonstrate that when law enforcement is made aware of such despicable schemes, we will commit the necessary resources to make sure that the fraudsters are brought to justice and are no longer in a position to engage in fraud. We wish to thank the U.S. Attorney’s Office and our investigative partners at the U.S. Postal Inspection Service, FBI and the D.C. Department of Insurance, Securities and Banking for their steadfast efforts.”
“In concert with her co-conspirators and through false loan applications, forged documents and fraudulent statements, Ms. O’Neal acted as a con artist when she caused a loss of more than $900,000 to mortgage lenders and banks who were supporting homeownership in the District of Columbia,” said Assistant Director in Charge Parlave. “The FBI recognizes the negative impact that mortgage fraud and foreclosures have on our local economy and in our community and, together with our law enforcement partners, we will continue to investigate and stop those who seek to defraud lenders, banks and homeowners.”
“Today’s sentencing sends a clear message that if you deceive District residents into fraudulent mortgages, you will be caught and there are serious consequences,” said Commissioner White. “I applaud the joint efforts by the investigators in our department, the U.S. Attorney’s Office and other federal agencies to bring down this scheme and prosecute these bad actors.”
The others who pled guilty include: Akinola George, 44, of Washington, D.C.; Orpel Tucker, 44, of Washington, D.C., Donald M. Ramsey, 46, a mortgage broker from Alexandria, Va., and Tania Firmani, 46, a title and escrow agent from Chesapeake Beach, Md.
George was sentenced in January 2012 to a 40-month prison term. Tucker was sentenced in May 2013 to a 37-month prison term. Ramsey was sentenced in August 2013 to five years of probation, including 20 weekends in jail; restitution of $535,435; 200 hours community service; and an order of forfeiture for $366,000. Firmani was sentenced in May 2013 to 15 months of incarceration.
In announcing the sentence, U.S. Attorney Machen, Inspector in Charge Barksdale, Special Agent in Charge Rubenstein, Assistant Director in Charge Parlave and Commissioner White praised those who worked on the case from the U.S. Postal Inspection Service, U.S. Department of Housing and Urban Development - Office of Inspector General, the FBI’s Washington Field Office, the District of Columbia Department of Insurance, Securities, and Banking, and the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including: Financial Analyst Crystal Boodoo; Paralegal Specialists Donna Galindo, Corrine Laxman, Diane Hayes, Lenisse Edloe, Shanna Hays, and Nicole Wattelet; former Paralegal Specialist Sarah Reis; Litigation Services Specialist Kimberly Smith; Law Interns Nicole Audet and Jason Navia, and Assistant U.S. Attorney Diane Lucas of the Asset Forfeiture and Money Laundering Section. Finally, they acknowledged the work of Assistant U.S. Attorney Virginia Cheatham, who prosecuted the case.
13-304Maryland Man Sentenced to Eight Years in Prison for His Role in Series of Attacks Against Taxicab Drivers-Alleged Ringleader Sentenced Last Month to Nearly 14 Years in Prison-Read the Press Release
WASHINGTON - Quinard Jones, 20, of Capitol Heights, Md., was sentenced today to eight years in prison on charges stemming from a series of attacks against taxicab drivers, U.S. Attorney Ronald C. Machen Jr. announced.
Jones pled guilty in May 2013, in the Superior Court of the District of Columbia, to one count each of armed robbery and one count of unauthorized use of a motor vehicle. He was sentenced by the Honorable Heidi M. Pasichow. Upon completion of his prison term, Jones will be placed on five years of supervised release.
The charges were filed in an investigation into the carjacking, assault, and robbery of taxicab drivers that took place in October and November of 2011. Jones and other individuals, including another defendant, Tony Copeland, were involved in several incidents in which they went to the Union Station taxicab line posing as paying customers, soliciting cab fares to the area of 44th Street NE. Once at the destination, Jones, Copeland, and their accomplices would choke the drivers from behind, or simply demand money. Among the items stolen from the several victims were hundreds of dollars in cash, cell phones, GPS devices, and a Rolex watch.
The armed robbery charge stemmed from a crime that took place on Nov. 19, 2011. That day, at about 10 p.m., Jones, Copeland, and three others all went to Union Station together in a collective plan to rob taxicab drivers. Jones, Copeland, and another individual solicited a taxicab there, and asked the driver to take them to the intersection of 45th and Eads Streets NE. When the driver arrived at the destination, Copeland reached around from the rear driver’s side seat and choked the driver from behind by placing his arms around the driver’s throat. Meanwhile, Jones and the other individual went through the driver’s belongings, stealing almost $400 in cash and a Rolex watch. Jones and Copeland ordered the cabdriver out of the taxi. One of the individuals got into the driver’s seat and drove away with the cab. The victim was able to flag down a neighbor, who gave the victim a phone to call 911. The taxicab was recovered days later by the Metropolitan Police Department (MPD), a few houses from Copeland’s residence.
The other charge stemmed from an incident on Oct. 18, 2011, also starting at Union Station. Four individuals solicited a taxicab ride and asked the driver to take them to the area of the 4700 block of Foote Street NE. Once there, one of the individuals put the driver in a choke-hold. The individuals stole $200 in cash, and a cell phone. The driver was ordered out of the vehicle, where the individuals threatened to shoot him. One of the individuals got into the taxicab and drove away. Later that day, Jones was seen driving the taxicab. MPD officers recognized the taxi as a stolen vehicle, and pursued Jones. Jones fled, leading officers from MPD and Prince George’s County on a chase that ended with Jones crashing the taxicab in Capitol Heights. The taxicab was totaled.
Copeland, 22, of Washington, D.C., was sentenced by Judge Pasichow on Aug. 16, 2013 to 13 years and 360 days of incarceration on charges of carjacking and robbery.
In announcing the sentence, U.S. Attorney Machen praised the work of those who investigated the case from the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Antoinette Sakamsa and Tony Griffith, Victim/Witness Advocate Jim Brennan, and Assistant U.S. Attorney Richard E. DiZinno, who prosecuted the matter.
13-303Maryland Man Sentenced to Eight Years in Prison for His Role in Series of Attacks Against Taxicab Drivers-Alleged Ringleader Sentenced Last Month to Nearly 14 Years in Prison-Read the Press Release
WASHINGTON - Quinard Jones, 20, of Capitol Heights, Md., was sentenced today to eight years in prison on charges stemming from a series of attacks against taxicab drivers, U.S. Attorney Ronald C. Machen Jr. announced.
Jones pled guilty in May 2013, in the Superior Court of the District of Columbia, to one count each of armed robbery and one count of unauthorized use of a motor vehicle. He was sentenced by the Honorable Heidi M. Pasichow. Upon completion of his prison term, Jones will be placed on five years of supervised release.
The charges were filed in an investigation into the carjacking, assault, and robbery of taxicab drivers that took place in October and November of 2011. Jones and other individuals, including another defendant, Tony Copeland, were involved in several incidents in which they went to the Union Station taxicab line posing as paying customers, soliciting cab fares to the area of 44th Street NE. Once at the destination, Jones, Copeland, and their accomplices would choke the drivers from behind, or simply demand money. Among the items stolen from the several victims were hundreds of dollars in cash, cell phones, GPS devices, and a Rolex watch.
The armed robbery charge stemmed from a crime that took place on Nov. 19, 2011. That day, at about 10 p.m., Jones, Copeland, and three others all went to Union Station together in a collective plan to rob taxicab drivers. Jones, Copeland, and another individual solicited a taxicab there, and asked the driver to take them to the intersection of 45th and Eads Streets NE. When the driver arrived at the destination, Copeland reached around from the rear driver’s side seat and choked the driver from behind by placing his arms around the driver’s throat. Meanwhile, Jones and the other individual went through the driver’s belongings, stealing almost $400 in cash and a Rolex watch. Jones and Copeland ordered the cabdriver out of the taxi. One of the individuals got into the driver’s seat and drove away with the cab. The victim was able to flag down a neighbor, who gave the victim a phone to call 911. The taxicab was recovered days later by the Metropolitan Police Department (MPD), a few houses from Copeland’s residence.
The other charge stemmed from an incident on Oct. 18, 2011, also starting at Union Station. Four individuals solicited a taxicab ride and asked the driver to take them to the area of the 4700 block of Foote Street NE. Once there, one of the individuals put the driver in a choke-hold. The individuals stole $200 in cash, and a cell phone. The driver was ordered out of the vehicle, where the individuals threatened to shoot him. One of the individuals got into the taxicab and drove away. Later that day, Jones was seen driving the taxicab. MPD officers recognized the taxi as a stolen vehicle, and pursued Jones. Jones fled, leading officers from MPD and Prince George’s County on a chase that ended with Jones crashing the taxicab in Capitol Heights. The taxicab was totaled.
Copeland, 22, of Washington, D.C., was sentenced by Judge Pasichow on Aug. 16, 2013 to 13 years and 360 days of incarceration on charges of carjacking and robbery.
In announcing the sentence, U.S. Attorney Machen praised the work of those who investigated the case from the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Antoinette Sakamsa and Tony Griffith, Victim/Witness Advocate Jim Brennan, and Assistant U.S. Attorney Richard E. DiZinno, who prosecuted the matter.
13-303Manderson Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Manderson, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on August 28, 2013, by Chief Judge Jeffrey L. Viken, United States District Court.
Frank William Holy Rock, age 22, was sentenced to 24 months of imprisonment, 3 years of supervised release, and ordered to pay $100 to the Federal Crime Victims Fund.
On May 20, 2012, a group of young men were drinking and enjoying a bonfire in a pasture two miles from Manderson. In the early morning hours, another group of young men, including Holy Rock, approached the group at the bonfire, yelling obscenities and challenging them to a fight. A fight ensued between some members of the two groups, and Holy Rock hit another man with a stick and kicked him in the head repeatedly, causing a laceration to the head, which required stitches, and a fractured hand. Holy Rock pled guilty on March 28, 2013.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Sarah B. Collins prosecuted the case.Man Who Took Sexually Explicit Photographs of 7-Year-Old and Posted Them Online Sentenced to 20 Years in PrisonRead the Press Release
RENO, Nev. – A man who took pornographic photographs of a seven-year-old relative and posted them on an Internet file sharing site, has been sentenced to 20 years in prison and lifetime supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Gregorio Evaristo Sarabia-Garcia, 31, of Sparks, Nev., was sentenced on Tuesday, Sept. 3, 2013, by U.S. District Judge Miranda M. Du. Sarabia-Garcia pleaded guilty on June 3, 2013, to one count of production of child pornography and one count of receipt of child pornography.
“The safety and well-being of our children is a top priority for the Department of Justice and our office,” said U.S. Attorney Bogden. “Our law enforcement partners will continue to aggressively search out these sexual predators and our office will continue to aggressively prosecute these child exploitation cases to protect our community and our children.”
According to the court records, between March 27 and April 26, 2012, an investigator with the Internet Crimes Against Children (ICAC) Task Force in Reno conducted an online undercover operation on an Internet file sharing network in an effort to identify individuals who were advertising, possessing, and distributing child pornography in northern Nevada. The investigator determined that Sarabia-Garcia, who lived in an apartment in Sparks, had placed numerous images of child pornography on the file sharing network. Investigators obtained and executed search warrants for several computers that Sarabia-Garcia possessed at his apartment, and found pornographic photographs of a seven-year-old relative of Sarabia-Garcia, as well as over 150 additional images of child pornography which Sarabia-Garcia had received from the Internet. These images depicted prepubescent minors engaged in sexually explicit conduct, including some files that depicted sadistic and masochistic conduct. Sarabia-Garcia admitted to investigators that he had taken the photographs of his relative with his cellular telephone and transferred them to his computer.
The investigation was conducted by U.S. Immigration and Customs Enforcement, with the assistance of the Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Carla Higginbotham.
The case has been 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."Man from Mexico Sentenced for Illegal Reentry After DeportationRead the Press Release
United States Attorney Brendan V. Johnson announced that a man from Mexico convicted of Illegal Reentry After Deportation was sentenced on August 28, 2013, by U.S. District Judge Roberto A. Lange.
Jesus Ochoa Aguirre, a/k/a Felipe Cabrera Aguirre, age 30, was sentenced to 12 months and 1 day of imprisonment and a $100 special assessment to the Federal Crime Victims Fund.
Ochoa Aguirre was indicted by a federal grand jury on October 10, 2012, and pled guilty to the charge on July 8, 2013.
The charge stems from an incident on or about September 24, 2012, when Ochoa Aguirre, an alien, was found in the United States in the District of South Dakota, after having been previously deported from the states on or about April 16, 2010. Ochoa Aguirre had not obtained the consent of the Secretary of the United States Department of Homeland Security and the Attorney General of the United States to apply for admission into the states. Ochoa Aguirre was found by law enforcement after a Fort Pierre resident reported that Ochoa Aguirre had tried to sell him methamphetamine.
The investigation was conducted by the Department of Homeland Security. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Ochoa Aguirre was immediately turned over to the custody of the U.S. Marshals Service.Lyndonville Man Sentenced to 18 Years for Sexual Exploitation of A ChildRead the Press Release
The United States Attorney’s Office has announced that yesterday, Chief United States District Court Judge Christina Reiss sentenced Benjamin H. Weisinger, 48, of Lyndonville, Vermont, to 216 months in federal prison for production, receipt and possession of child pornography. Weisinger was convicted of the charges in April after a four-day jury trial. The production of child pornography conviction carried a mandatory minimum sentence of 15 years in prison.
According to trial testimony and court documents, Weisinger began his sexual abuse of the minor female when she was 9 or 10 years old. The abuse continued for several years and when the minor female was approximately 12 years old, Weisinger had her create sexually explicit videos and had her send him texts of the same conduct. One of these videos was discovered by the minor’s mother in November 2011 and the mother called the police. A later search of Weisinger’s computer and email accounts revealed numerous sexually explicit videos depicting the same minor female.
The case was investigated by the Vermont State Police, specifically, members of the Special Investigations Unit located in Hyde Park and the Vermont Internet Crimes Against Children Task Force. The Department of Homeland Security also assisted in the investigation. The prosecutors on the case were Assistant United States Attorneys Wendy L. Fuller and Paul J. Van de Graaf.
Little Eagle Man Charged with Domestic Assault by an Habitual Offender and Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man has been indicted by a federal grand jury.
Chat Moses Bobtail Bear Sr., a/k/a Chate Bobtail Bear Sr., age 35, was indicted by a federal grand jury on August 21, 2013. He appeared before U.S. Magistrate Judge William D. Gerdes on August 29, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction of the habitual offender offense is 5 years of imprisonment. The maximum penalty upon conviction of the assault charge is 10 years of imprisonment. All counts include a possible $250,000 fine, 3 years of supervised release, an additional 2 years of supervised release upon revocation, and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges stem from several alleged assaults of an individual who, at the time of the assaults, was the spouse or intimate partner of Bobtail Bear.
The charges are merely accusations, and Bobtail Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Bobtail Bear was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.Lexington Business Owner Sentenced for False Tax ReturnRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Lexington, Mo., business owner has been sentenced in federal court for filing a false income tax return after claiming earned income tax credits despite his extravagant lifestyle.
Christopher Huffman, 49, of Lexington, was sentenced by U.S. District Judge Dean Whipple on Tuesday, Sept. 3, 2013, to two years and three months in federal prison without parole. The court also ordered Huffman to pay $484,505 in restitution.
Huffman is the owner of IG Construction, an asphalt and tree-trimming business formerly known as Interstate General Contractors. Huffman, who pleaded guilty on Feb. 4, 2013, admitted that he engaged in a scheme to falsely under-report the gross receipts for his business on his tax returns for tax years 2006-2008 in order to significantly reduce his income tax liability.
Huffman claimed business expenses almost equal to his gross receipts, so that his reported income was low enough to claim the earned income tax credit. The earned income tax credit is a refundable tax credit intended for workers earning a low to moderate income, which results in a tax refund for those whose credit exceeds the amount of taxes owed.
For tax years 2006 - 2008, while claiming he earned less than $20,000 per year, Huffman lived in and owned a 4,000-square-foot house which he valued at $1.6 million and which had a 13-car garage, an in-ground pool/lake, a basketball court and a volleyball court. Huffman bought a 2007 Cadillac Escalade, two classic Chevrolet Camaros and two Harley Davidson motorcycles during this time.
Huffman under-reported his gross receipts for the three tax years in question, 2006 through 2008, by a total of $1,340,379. The tax loss to the United States is $484,505.
In 2007, Huffman claimed in a loan application that he had $10,700 in cash and received a salary of $65,000, and listed his net worth at $2.4 million. In 2008, Huffman claimed in another loan application that he received a salary of $100,000 and that his net worth was almost $3 million.
This case was prosecuted by Assistant U.S. Attorney Kate Mahoney. It was investigated by IRS-Criminal Investigation.Law Enforcement Arrests Eight Linked to Heroin, Meth and Cocaine TraffickingRead the Press Release
In coordinated arrests this morning, the FBI, ATF, U.S. Postal Inspection Service and Seattle Police Department took eight people into custody for a wide ranging drug trafficking conspiracy, announced U.S. Attorney Jenny A. Durkan. Members of the conspiracy maintained drug stash houses throughout the Pacific Northwest. Search warrants were served today in Vancouver, Covington, Puyallup, SeaTac, Tukwila, Seattle and Tacoma, Washington. Some of the drug traffickers conducted their deals at a Mexican restaurant in the South Park neighborhood of Seattle: the Juan Colorado. The restaurant was closed today while law enforcement searched the premises. The defendants will make their initial appearances at 2:00 PM today in U.S. District Court in Seattle.
“The members of this drug trafficking conspiracy brought meth, cocaine and heroin to our communities preying on those with addictions to line their own pockets,” said U.S. Attorney Jenny A. Durkan. “This lengthy investigation led to seizures of illegal weapons as well as street drugs. This strong law enforcement collaboration is essential to keeping our communities safe.”
According to court records, the investigation of the drug trafficking organization began in November 2011. Surveillance indicates the conspirators brought the drugs up from California and sold them at various locations ranging from auto wrecking yards in Auburn to outside restaurants at the Southcenter shopping mall. Many of the drug deals were made in or around the Juan Colorado Mexican restaurant on 14th Avenue South, Seattle.
“Today’s operation is just the beginning of the end for an aggressive drug and weapons trafficking organization,” said FBI Special Agent-In-Charge Laura M. Laughlin. “The FBI will continue to work with the Seattle Police Department, ATF and other law enforcement agencies to bring an end to the drugs, guns and violence that these criminals bring to our streets.”
“Mixing criminals, guns and drugs is a foul recipe for any neighborhood,” said Seattle Police Chief Jim Pugel. “This organization spread its rotten ingredients throughout Puget Sound. Working together with our local and federal partners, we were able to ‘eighty-six’ this criminal enterprise, taking it off of the menu for good.”
Members of the drug conspiracy arrested today following their indictment by the grand jury for drug distribution include: JOSE AYALA MAZORAQUIL, 39, of Tukwila, Washington; ALFONSO ROJO LOPEZ, 26, and JOSEPH EDWARD BELL, 62, both of SeaTac, Washington; PEDRO VELAZQUEZ GOMEZ, 27, and BENJAMIN CASTRO, 45, both of Seattle, Washington. Three people were arrested on criminal complaints: VICTOR AMAYA CRUZ, 40, of Auburn, Washington for distribution of cocaine and methamphetamine and two additional defendants who will appear in court at 2:00 PM today.
The charges contained in the indictment and complaints are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. The investigation was led by the FBI’s Safe Streets Task Force including officers and agents from the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the U.S. Postal Inspection Service (USPIS). Today’s arrests and search warrants involved a number of law enforcement agencies: the King County Sherriff’s Office, Pierce County Sherriff’s Office, Tacoma Police Department and the Valley SWAT Team (Renton, Kent, Tukwila and Auburn Police Departments).
The case is being prosecuted by Assistant United States Attorneys Jeffrey Backhus and Kate Crisham.
Last Defendants Sentenced in Meth Trafficking ConspiracyRead the Press Release
WAYCROSS, GA – Charles W. Johns, 60, of Hoboken, Georgia was sentenced last month by United States Chief District Court Judge Lisa Godbey Wood to 78 months in prison for his role in a methamphetamine conspiracy operating in the Waycross, Georgia area. Judge Wood previously sentenced 4 others from the Waycross area for their roles in the drug trafficking conspiracy. Stephen Miles, 30, was sentenced to 124 months in prison; Pamela Moore, 45 and the wife of defendant Johns, was sentenced to 48 months in prison; Corey B. Perkins, 33, was sentenced to 37 months in prison; and, Anna Hambrick, 28, was sentenced to 20 months in prison.
Evidence presented during the sentencing hearings showed that defendant Miles was the leader and organizer of a methamphetamine trafficking ring operating out of the Ware and Brantley County areas. In January 2012, several undercover purchases of methamphetamine were made from members of the conspiracy. Eventually, investigating agents executed search warrants where a weapon and a significant amount of methamphetamine were seized.
The investigation of the case was led by the DEA and the Brantley County Sheriff’s Office. The GBI and the Charlton County Sheriff’s Office also assisted in the investigation. Assistant United States Attorney Carlton Bourne prosecuted the case on behalf of the United States. For additional information, contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Jury Convicts Chairman of Oil and Gas Well Promotions Company on Conspiracy and Securities FraudRead the Press Release
Always Consulting, Inc. Located in Richardson, Texas
DALLAS — The chairman and director of field operations of Always Consulting, Inc. (ACI), an oil and gas well promotions company with offices in Richardson, Texas, was convicted this morning by a federal jury on one count of conspiracy to commit securities fraud and 23 substantive counts of securities fraud. David Kevin Lewis, aka “David Shane Lewis” and “DW,” 52, of Albany, Kentucky, faces a maximum statutory penalty of five years in prison and a $250,000 fine per count. A forfeiture of $2,538,642 will be ordered at the defendant’s sentencing; restitution may also be ordered. Chief U.S. District Judge Sidney A. Fitzwater, who presided over the week-long trial, set a sentencing date of December 20, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Lewis’s co-defendants in the case, Bruce Kyle Griffith, 59, of Dallas, and Thomas Alden Markham, Jr., 63, of Plano, Texas, have each pleaded guilty to their roles and are scheduled to be sentenced on December 6, 2013. Griffith, who was the president and CEO of ACI, pleaded guilty to one count of conspiracy to commit securities fraud and one count of securities fraud. Markham, ACI’s chief geologist, pleaded guilty to one count of misprision of a felony.
Lewis, Griffith and Markham conspired together to scheme to obtain money and property by making untrue statements and omitting material facts to defraud investors, located throughout the United States, who purchased interests in well program units, representing fractional, undivided interests in oil, gas or other mineral rights and investment contracts.
They sent investment documents and monthly investment newsletters from ACI to induce investors to invest money and purchase interests in the Rattlesnake Springs Drilling Program or other oil and gas drilling programs. Rattlesnake, was one of several investment programs offered and sold by ACI to investors, was to be located in Osage County, Oklahoma.
They also used ACI sales employee “fronters” to contact prospective investors and referred interested and financially-able investors to ACI employee “closers,” including Lewis and Griffith, who contacted the interested investors to convince them to invest. The “fronters” were equipped with scripts, pitches and talking points all touting the investment and designed to make prospective investors believe that ACI’s programs were potentially profitable investments.
They also provided the ACI sales employees with a “do not call” list, entitled “Undercover Regulators,” which listed contact information of individuals the defendants suspected of being state or federal regulators posing as potential investors.
The defendants misapplied and converted the Rattlesnake Springs Drilling Program investor funds to their own use and benefit, and the use and benefit of others, including the purchase of real and personal property and to pay for expenses of other ACI programs.
The defendants falsely stated that: ACI would perform all necessary services to complete the Rattlesnake Springs Drilling Program; ACI would use investor funds to begin site preparation, drilling, testing and completion of the Rattlesnake Springs Drilling Program wells; ACI would pay all costs necessary to get the wells into production for approximately $3.5 million; ACI had influence inside the Osage Nation in Oklahoma and could acquire oil and gas leases on terms unavailable to others; pipelines had been laid; and Griffith begin in the oil and gas business in 1985 as a private pilot flying oil executives and equipment to foreign countries.
The defendants concealed from investors that: Rattlesnake investor funds were being comingled with funds from other ACI projects and were being used to pay operating expenses of other ACI projects; most of Rattlesnake’s investor funds had been misapplied and diverted an no longer available to drill the promised 20 wells; funds invested in Rattlesnake had been diverted, for the use and benefit of the defendants; ACI relied on investor funds to operate and upon production revenue from oil and gas wells.
ACI’s offering memorandum identified “DW” and “Griffith” as registered operators in Texas and Oklahoma, but omitted that “DW” was Lewis and that Lewis and Griffith weren’t registered to sell securities in Texas. ACI represented that “DW” (Lewis) had 25 years’ experience in finance, investing, management and the oil and gas industry, but omitted facts including: Lewis was a convicted felon, having been convicted in 2000 of securities fraud and conspiracy to commit mail fraud, in connection with oil and gas offerings; Lewis was under federal court orders to pay approximately $2.2 million in restitution to previously defrauded oil and gas investors; and Lewis was under an injunction barring him from violating federal securities laws in connection with oil and gas offerings.
ACI’s offering memorandum also noted that Griffith had 20 years’ experience in the oil and gas industry, having started out as a private pilot with a twin engine rating and instrument rating. Griffith, however, was never a pilot, had little experience in the industry, and in fact, was a convicted felon, having been specifically convicted in federal court of bank robbery in 1994 and conspiracy to possess and utter counterfeit federal reserve notes in 1989.
ACI’s offering stated that Markham had more than 30 years in the oil and gas industry as a geologist, supervisor and manager, but failed to disclose he was a convicted felon, having been convicted of mail fraud in 2000 in connection with an oil and gas offering, and that as part of his sentence, he was under court order to pay nearly $400,000 in restitution to defrauded investors.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The case is being investigated by the FBI and the Texas State Securities Board (TSSB). Assistant U.S. Attorney Joseph Revesz and TSSB Enforcement Attorney Suzanne Steinmetz are in charge of the prosecution.
Jonathan James Henderson Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 28, 2013, before Chief U.S. District Judge Dana L. Christensen, JONATHAN JAMES HENDERSON, a 28-year-old resident of Great Falls, was sentenced to a term of:
Prison: 90 months
Special Assessment: $100
Supervised Release: 4 years
HENDERSON was sentenced in connection with his guilty plea to possession with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan R. Whittaker, the government stated it would have proved at trial the following:
Between February and April of 2011, in Cascade County, HENDERSON possessed with the intent to distribute 50 grams or more of a substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HENDERSON will likely serve all of the time imposed by the court. In the federal system, HENDERSON does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Italian National Pleads Guilty to Illegal Reentry After Prior DeportationRead the Press Release
Francesco Gulino was arrested in April in Raleigh Co. for possessing heroin
BECKLEY, W.Va. – An Italian national who illegally reentered the United States after being previously deported pleaded guilty today in federal court in Beckley, announced United States Attorney Booth Goodwin. Forty-three-year-old Francesco Gulino, also known as “Frank Gulino,” of Italy, was indicted in June 2013 for the federal offense of aggravated reentry. Gulino had been previously convicted of attempted felonious assault in May 2009 in the Court of Common Pleas, Cuyahoga County, Ohio. Gulino was later deported from the United States on or about April 20, 2011. Sometime after April 20, 2011, Gulino illegally reentered the United States from Canada. Gulino had not obtained approval of the Secretary of Homeland Security to reapply for admission.
On April 20, 2013, Gulino was arrested by the West Virginia State Police in Raleigh County, W.Va., for possession with intent to deliver a controlled substance. In July 2013, Gulino was convicted in Raleigh County Circuit Court of possession with intent to deliver heroin.
Gulino faces up to 20 years in federal prison when he is sentenced in January 2014 by United States District Judge Irene C. Berger. The defendant will also face an administrative deportation proceeding after he discharges his federal sentence.
The U.S. Department of Homeland Security, assisted by the West Virginia State Police and the Raleigh County Prosecuting Attorney’s Office conducted the investigation. Assistant United States Attorney Erik S. Goes is handling the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Iowa Woman Pleads Guilty to Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that Dana Hoover, a/k/a Dana Strawn, age 51, of Cushing, Iowa, appeared before U.S. District Judge Roberto A. Lange on August 29, 2013, and pled guilty to Count I of the Indictment that charged her with Distribution of a Controlled Substance.
The maximum penalty upon conviction is 20 years of imprisonment and/or a $1,000,000 fine, a mandatory 3 years up to life of supervised release, an additional 2 years of supervised release upon revocation, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
Hoover was introduced to an undercover agent in April 2012. After conversation and exchanging text messages, Hoover agreed to sell methamphetamine to the agent, whom Hoover knew to be located in the central South Dakota area. The agent wired money to Hoover and arrangements were made for the agent to pick up the methamphetamine from Hoover. On May 10, 2012, at a truck stop near Sioux Falls, South Dakota, Hoover met the agent and delivered the methamphetamine.
The State Health Lab confirmed that the substance Hoover sold on May 10, 2012, was methamphetamine with a weight of 7.39 grams. The total amount of methamphetamine attributed to Hoover for distribution was at least 20 grams but less than 30 grams.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Hoover was remanded to the custody of the U.S. Marshals Service pending sentencing, which has been set for November 21, 2013.Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on August 30, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, the following individuals were arraigned:
STEVE HUMISTON, a 56-year-old resident of Tacoma, Washington; JOHN JOHNSON, a 57-year-old resident of Locust Grove, Virginia; SCOTT LONG, a 53-year-old resident of Portland, Oregon; and PAUL WENCEWICZ, a 47-year-old resident of Polson, appeared on charges of child exploitation enterprise and conspiracy to advertise child pornography. In addition, WENCEWICZ was also charged with obstruction of justice. They are currently detained.
If convicted of child exploitation enterprise, they each face a mandatory minimum of 20 years in prison and could be sentenced to life, a $250,000 fine, and a minimum of 5 years supervision. In addition, if convicted of conspiracy to advertise child pornography, they each face a mandatory minimum of 15 to 30 years in prison, a $250,000 fine, and a minimum of 5 years supervision. WENCEWICZ also faces 20 years in prison, a $250,000 fine, and 3 years supervised release if convicted of obstruction of justice.
Assistant U.S. Attorney Cyndee L. Peterson is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bozeman Police Department.
The defendants pled not guilty to the charges.
The charges, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
In the Spotlight: Loretta LynchRead the Press Release
In the Spotlight: Loretta Lynch
Imperial Gangster Gang Member Charged with MurderRead the Press Release
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - United States Attorney David Capp announced that Raymond Campos, a member of the Imperial Gangster street gang, pled guilty today in US District Court to racketeering conspiracy.Campos admitted to being a member of the Imperial Gangsters and participating in the operation of that criminal enterprise through shootings and homicides.Campos also agreed to cooperate with the government in its ongoing investigation into criminal gangs.
In addition to his plea of guilty to the RICO conspiracy, Campos also pled guilty to murder in aid of racketeering activity that was charged in a separate Information.Campos admitted to the murder of Steven Rodriguez in East Chicago on February 9, 2002.Rodriguez was 14 years of age at the time of his death.
The Rodriguez homicide is the 20th previously uncharged homicide that the United States Attorney’s Office has charged in its ongoing efforts against organized street gangs, particularly the Imperial Gangsters and Latin Kings.
United States Attorney David Capp stated, “It does not matter how long ago some of these homicides may have occurred.We are actively investigating any number of cold homicides.When the evidence warrants, we will seek indictments.It is our intention to keep the pressure on these organized street gangs and hold them accountable for their criminal acts, regardless of when they occurred.”
There are 20 previously uncharged homicides being dealt with in federal court.Those attributed to members of the Imperial Gangster street gang are:
1. Steven Rodriguez, February 9, 2002 in East Chicago
2. Anuar Paez, July 24, 2004 in East Chicago
3. Guadalupe Trevino, July 24, 2005 in Gary
4. Juan Murillo, Sr., March 22, 2007 in East Chicago
5. Rene Alonzo, September 16, 2007 in East Chicago
6. Luis Ortiz, September 26, 2007 in Hammond
7. Mario Soriano, March 25, 2008 in East Chicago
8. Michael Sessum, June 3, 2008 in East Chicago
9. Miguel Meijias, June 3, 2008 in East Chicago
10. Harris Brown, October 9, 2008 in East Chicago
11. Miguel Colon, February 10, 2010 in East Chicago
12. Jesus Alvarez, March 26, 2010 in East Chicago
13. Latroy Howard, June 10, 2010 in East Chicago
Previously uncharged homicides attributed to members of the Latin Kings street gang are:
14. Jonathan Zimmerman, December 26, 2003 in Hammond
15. Edward Delatorre, November 26, 2006 in Chicago
16. James Walsh, February 25, 2007 in Griffith
17. Gonzalo Diaz, February 25, 2007 in Griffith
18. Jose Cortez, May 25, 2008 in East Chicago
19. Christina Campos, April 22, 2009 in Chicago
Last week, Oscar Cosme and Kiontay Pennington were charged with the previously uncharged murder of Julio Cartenaga on May 16, 2003 in East Chicago.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the East Chicago Police Department, and the Federal Bureau of Investigation, with assistance from the Gary Police Department, the Hammond Police Department and the Lake County HIDTA.This case has been assigned to and will be prosecuted by Assistant United States Attorney David J. Nozick and Department of Justice Trial Attorney Bruce Hegyi of the Capital Case Unit.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Illegal Re-Entry After Attempted Capital Murder Results in Significant SentenceRead the Press Release
McALLEN, Texas - Eduardo Castellano-Espinoza, 50, of Miguel Aleman, Tamaulipas, Mexico, has been handed a 78-month federal prison sentence, announced United States Attorney Kenneth Magidson. Castellano-Espinoza pleaded guilty June 18, 2013, to being unlawfully present in the U.S. after deportation.
Just a short time ago, U.S. District Judge Randy Crane upwardly departed from the U.S. Sentencing Guidelines, taking into consideration the defendant’s prior conviction and overall aggravating circumstances. It is expected that he will once again face deportation proceedings following completion of the federal prison term.
On May 2, 2013, Castellano-Espinoza was found attempting to exit the United States. When approached by federal agents, he attempted to evade by fleeing to Mexico. After he was apprehended, it was determined he had been deported in 2010 after receiving a 40-year prison sentence for attempted capital murder of a Texas peace officer. In course of that crime, a Starr County sheriff’s deputy was shot and an elderly woman was pinned beneath Castellano-Espinoza’s out-of-control vehicle.
Castellano-Espinoza will remain in custody pending transfer to a U.S. Bureau of Prison’s facility to be determined in the near future.
This case was investigated by Border Patrol and was prosecuted by Assistant United States Attorney Jason C. Honeycutt.
Illegal Alien Sentenced on Illegal Reentry CaseRead the Press Release
BOSTON – A resident of the Dominican Republic was sentenced today for illegally reentering the United States after being previously deported.
Odelio Alberto Sepulveda Guerrero, 35, of Dorchester, was sentenced by U.S. District Court Judge Joseph L. Tauro to 18 months in prison, and three years of supervised release. Guerrero also faces deportation to the Dominican Republic upon completion of his prison term. In June 2013, Guerrero pleaded guilty to illegal reentry of a deported alien.
Guerrero had previously been removed from the United States in 2002 and 2009; he re-entered the United States illegally at some point after each removal without permission. In 2002, Guerrero arrived to the United States from Santo Domingo, Dominican Republic and attempted to gain admission by presenting a U.S. passport under a false name to immigration inspectors in New York. Additionally, in 2008, he was convicted of felony narcotics offenses. Guerrero most recently re-entered the United States at an unknown place and date and came to the attention of agents in March 2013.
United States Attorney Carmen M. Ortiz; and Bruce M. Foucart, Special Agent in Charge U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz’s Major Crimes Unit.Harrisburg Woman Indicted in Mail Fraud SchemeRead the Press Release
Actions Allegedly Defrauded Social Security and Veteran Benefits Recipients
Terri Ann Deneal, 51, of Harrisburg, IL, was charged on September 4, 2013, with Mail Fraud, in an Indictment returned by a Federal Grand Jury sitting in Benton, Illinois, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The indictment charges that from January 1, 2005, through May of 2011, Deneal executed a scheme to defraud Social Security Administration and Department of Veteran Affairs benefit recipients of approximately a half-million dollars. The fraud took place while Deneal was acting as a representative payee and fiduciary for federal aid recipients, who because of physical or mental ailments were unable to handle their own finances. The indictment further alleges that Deneal used the funds of these recipients to pay her own bills and expenses.
Mail fraud carries penalties of up to 20 years of imprisonment, a fine of up to $250,000 and up to 3 years of supervised release to follow any incarceration.
An Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation in this case was conducted by the Offices of Inspector General, Office of Investigations for the Social Security Administration and the Department of Veterans Affairs, as well as the Carbondale Police Department.
The case is being prosecuted by Assistant United States Attorney Ranley R. Killian.
Gunman in Armed Bank Robbery Sentenced to 10 years in PrisonRead the Press Release
OAKLAND – Gary Casdell Fite, II, was sentenced today to 10 years in prison for armed bank robbery and brandishing a firearm in furtherance of a crime of violence, United States Attorney Melinda Haag announced.
In pleading guilty, Fite admitted to robbing the Mechanics Bank on Pinole Valley Boulevard in Pinole, Calif., on March 1, 2013, with the help of a getaway driver and a lookout. Fite admitted that he was the gunman in the armed robbery. According to the plea agreement, Fite entered the bank, brandished his loaded firearm, and ordered everyone to get down on the ground. Fite then jumped over the teller counter and demanded money from two victim tellers. While demanding money, Fite pointed his loaded gun at the head of one of the victim tellers. Fite stole $3,292 from the bank.
Fite, 23, of Oakland, was indicted by a federal Grand Jury on March 28, 2013, and is currently in federal custody. The sentence was handed down by U.S. District Court Judge Phyllis J. Hamilton. In addition to his prison term, Fite was also sentenced to a 5-year period of supervised release.
Co-defendant and getaway driver Regina Dean, 37, of Antioch, was sentenced on August 21, 2013, to 5 years in prison. The alleged lookout, Kevin Tyrone Buford, 27, of Vallejo, was indicted on August 30, 2013, and his next court appearance is scheduled before Judge Hamilton on September 18, 2013, at 1:30 p.m.
Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance Legal Assistant Janice Pagsanjan. The prosecution is the result of an investigation by the FBI.
Four Army National Guard Soldiers Plead Guilty in Connection with Bribery <br /> and Fraud Schemes to Defraud the U.S. Army National Guard BureauRead the Press Release
Four current and former soldiers of the U.S. Army National Guard pleaded guilty today for their roles in bribery and fraud schemes that caused a total of more than $210,000 in losses to the U.S. Army National Guard Bureau.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
Melanie D. Moraida, 33, of Pearland, Texas; Kimberly N. Hartgraves, 28, of League City, Texas; Lashae C. Hawkins, 27, of San Antonio; and Vanessa Phillips, 35, of Houston, all pleaded guilty to one count of conspiracy and one count of bribery.
The cases against all four defendants arise from an investigation involving allegations that former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to illegally obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 25 individuals, 15 of whom have pleaded guilty.
According to court documents filed in all four cases, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker, Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the Army National Guard. Through this program, a participating soldier could receive bonus payments for referring another individual to join. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
Moraida, Hartgraves, Hawkins and Phillips all admitted that they paid Army National Guard recruiters for the names and Social Security numbers of potential Army National Guard soldiers. They further admitted that they used the personal identifying information for these potential soldiers in claiming that they were responsible for referring the potential soldiers to join the Army National Guard, when in fact they had not referred them.
As a result of these fraudulent representations, Moraida collected approximately $14,500 in fraudulent bonuses; Hartgraves collected approximately $2,000 in fraudulent bonuses; Hawkins collected approximately $33,000 in fraudulent bonuses; and Phillips collected approximately $10,000 in fraudulent bonuses.
The charge of bribery carries a maximum penalty of 15 years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss. The charge of conspiracy carries a maximum penalty of five years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss.
The defendants are all scheduled to be sentenced on Dec. 17, 2013, before U.S. District Judge Lee H. Rosenthal in Houston.
The cases are being investigated by special agents from the San Antonio Fraud Resident Agency of Army Criminal Investigation Command’s Major Procurement Fraud Unit. These cases are being prosecuted by Trial Attorneys Brian A. Lichter, Sean F. Mulryne and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney John Pearson of the Southern District of Texas.Four Army National Guard Soldiers Plead Guilty in Connection with Bribery and Fraud Schemes to Defraud the U.S. Army National Guard BureauRead the Press Release
To Date, 15 Individuals Have Pleaded Guilty in Ongoing Corruption Investigation
HOUSTON – Four current and former soldiers of the U.S. Army National Guard pleaded guilty today for their roles in bribery and fraud schemes that caused a total of more than $210,000 in losses to the U.S. Army National Guard Bureau.
United States Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division made the announcement.
Melanie D. Moraida, 33, of Pearland, Kimberly N. Hartgraves, 28, of League City, Lashae C. Hawkins, 27, of San Antonio, and Vanessa Phillips, 35, of Houston, all pleaded guilty to one count of conspiracy and one count of bribery.
The cases against all four defendants arise from an investigation involving allegations that former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to illegally obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 25 individuals, 15 of whom have pleaded guilty.
According to court documents filed in all four cases, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the Army National Guard. Through this program, a participating soldier could receive bonus payments for referring another individual to join. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
Moraida, Hartgraves, Hawkins and Phillips all admitted they paid Army National Guard recruiters for the names and Social Security numbers of potential Army National Guard soldiers. They further admitted they used the personal identifying information for these potential soldiers in claiming they were responsible for referring the potential soldiers to join the Army National Guard, when in fact they had not referred them.
As a result of these fraudulent representations, Moraida collected approximately $14,500 in fraudulent bonuses; Hartgraves collected approximately $2,000 in fraudulent bonuses; Hawkins collected approximately $33,000 in fraudulent bonuses; and Phillips collected approximately $10,000 in fraudulent bonuses.
The charge of bribery carries a maximum penalty of 15 years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss, while conspiracy carries a maximum penalty of five years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss.The defendants are all scheduled to be sentenced on Dec. 17, 2013, before U.S. District Judge Lee H. Rosenthal in Houston.
The cases are being investigated by special agents from the San Antonio Fraud Resident Agency of Army Criminal Investigation Command’s Major Procurement Fraud Unit. These cases are being prosecuted by Assistant U.S. Attorney John Pearson and Trial Attorneys Brian A. Lichter, Sean F. Mulryne and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section.
Fort Thompson Man Pleads Guilty to Felon in Possession of FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that Bryant Ross, age 39, of Fort Thompson, South Dakota, appeared before U.S. District Judge Roberto A. Lange on August 29, 2013, and pled guilty to the Indictment that charged him with Felon in Possession of Firearm.
The maximum penalty upon conviction is 10 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, an additional 2 years of supervised release upon revocation, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an incident on February 23, 2013, when a Bureau of Indian Affairs Officer made contact with Ross in the Old Fort campground area off of Highway 47. It was learned at this time that Bryant “Spud” Ross had an active tribal warrant. During his arrest on the tribal warrant, it was learned there were two firearms in Ross’ possession.
Ross was convicted in 1998 of Possession of Controlled substance-Meth, which prohibits him from possessing a firearm.
The investigation was conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Ross was remanded to the custody of the U.S. Marshals Service pending sentencing, which has been set for November 21, 2013.Former Traffic Safety Service LLC Vice President Pleads Guilty to Tax EvasionRead the Press Release
NEWARK, N.J. – A former vice president at a South Plainfield, N.J., traffic safety equipment business admitted today to evading income taxes on more than $2 million in withdrawals he made from the business for his own use, U.S. Attorney Paul J. Fishman announced.
Anthony R. Pecoraro, 50, of Colts Neck, N.J., pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of tax evasion.
According to documents filed in this case and statements made in court:
Pecoraro worked in 2008 and 2009 at Traffic Safety Service LLC, which provided traffic safety equipment and other traffic related services to local and state municipalities and private businesses. In connection with his position as a vice president, he had access to the company’s business account.
During his guilty plea proceeding, Pecoraro admitted he wrote checks for unauthorized cash withdrawals for a total of approximately $2,126,200 between June 2008 and December 2009, which he took for personal use. Pecoraro acknowledged he failed to report this money as taxable income for calendar years 2008 and 2009 in the amounts of $563,800 and $1,562,400, respectively, and that if he had reported the additional cash on his income tax returns he would have owed the government approximately $733,970.
The charge to which Pecoraro pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Dec. 4, 2013.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark; and IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the investigation.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
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Defense counsel: John McDonald Esq., Somerville, N.J.Pecoraro, Anthony Information
Former Title Company Employee Pleads Guilty to Conspiracy to Commit Bank FraudRead the Press Release
HOUSTON – Harris County resident Maria Eliza Garza has pleaded guilty to conspiring to defraud seven different Houston-area banks or more than $2 million in 2007 and 2008, announced United States Attorney Kenneth Magidson.
As outlined in documents filed with the court and admitted by Garza during her guilty plea, she and a co-conspirator agreed to carry out a check kiting scheme that targeted seven different financial institutions in the Houston area. While the co-conspirator allegedly devised the scheme which used multiple bank accounts held in the name of title companies he controlled, Garza admitted she assisted by discussing which bank accounts needed money, preparing checks to sign and depositing signed checks at the banks.
Garza, of Houston, admitted as part of her plea that she helped carry out the scheme from at least January 2007 through June 2008. To do so, Garza prepared checks drawn on the title companies’ accounts. The co-conspirator signed the checks and both knew the accounts lacked sufficient funds to cover the checks. Garza deposited the checks into other accounts controlled by the co-conspirator, which artificially inflated the account balances. They would then write additional checks using the artificially inflated balances and deposit them into either the original issuing account or other accounts controlled by the co-conspirator.
Garza also admitted she and conducted the scheme to artificially inflate the account balances and place the funds at her co-conspirator’s disposal to use as interest-free loans and lines of credit. They continued to carry out the scheme even after three of the banks discovered the kiting activity and shut down the relevant accounts. When the scheme finally collapsed in June 2008, the total loss to the affected banks was $2,099,65.72.
U.S. District Judge Lee H. Rosenthal, who accepted Garza’s plea, has set sentencing for Dec. 17, 2013, at which time she faces up to five years in federal prison and a $250,000 fine or twice the pecuniary gain or loss.
The case is being investigated by the FBI and being prosecuted by Assistant U.S. Attorney John Pearson.
Former TVA Vice President Pleads Guilty to Unlawful Financial Investments in Iran and Filing False Income Tax ReturnsRead the Press Release
KNOXVILLE, Tenn. – On September 4, 2013, former TVA Vice President Masoud Bajestani, 58, formerly of Chattanooga, Tenn. pleaded guilty to conspiracy to violate the International Emergency Economic Powers Act (IEEPA) and Iranian Transactions Regulations, and two counts of filing false income tax returns. Bajestani also agreed to the forfeiture of $600,000 in U.S. currency, representing the funds used to promote the specified unlawful activity.
Sentencing is set for 1:15 p.m., on January 15, 2014, in U.S. District Court in Knoxville, Tennessee, before the Honorable Leon Jordan, U.S. District Judge. Bajestani faces a maximum penalty of five years in prison for conspiracy to violate the IEEPA, and three years for each count of filing a false tax return. He also faces a maximum fine of $250,000 on each count.
In February 2013, a federal grand jury returned an 11-count superseding indictment against Bajestani, charging him with conspiracy, violations of the IEEPA and the Iranian Transactions Regulations, making a false statement to a federal agency, international money laundering, and filing false income tax returns.
Between February 2008 and May 2010, Bajestani agreed and conspired with an Iran-based coconspirator to engage in financial investments in Iran, in violation of the Iranian Transactions Regulations. These regulations impose economic sanctions against Iran, making it unlawful to make financial investments in Iran without authorization from the U.S. Office of Foreign Assets Control. Bajestani transferred $600,000 to Iran for investment purposes. He and his coconspirator used an informal value transfer system known as a “hawala” to transfer the funds to Iran. Bajestani also falsely reported on his income tax returns that he did not have an interest in a foreign bank account.
This investigation was conducted by Homeland Security Investigations, IRS-Criminal Investigations Division, Tennessee Valley Authority-Office of Inspector General, and Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey Theodore represented the United States.
Former Postal Supervisor Sentenced to 16 Months in Prison for Lying on A Federal Worker's Compensation DocumentRead the Press Release
STATESVILLE, N.C. – On Tuesday, September 3, 2013, U.S. District Judge Richard Voorhees sentenced a former supervisor with the U.S. Postal Service to serve 16 months in prison for submitting false information on a 2008 workman’s compensation benefits application, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Paul Bowman, Area Special Agent in Charge of the United States Postal Service, Office of Inspector General (USPS –OIG).
Joseph Catone, Jr., 58, of Boone, was convicted in March 2012 by a federal jury for lying on a federal document Catone submitted in 2008 which contained false information. Catone submitted the false information on an application in order to receive workman’s compensation benefits. According to evidence presented at trial and yesterday’s sentencing hearing, on or about July 21, 2006, Catone, while employed as a USPS supervisor at a post office in Boone, claimed that he had developed a stress-related condition as a result of excessive driving in the performance of his duties. The Department of Labor, Office of Workers’ Compensation Program (DOL OWCP) accepted Catone’s claim for temporary aggravation of sleep apnea, and Catone became eligible to receive compensation benefits because of the claimed disability.
According to court records, as a condition of his receipt of compensation benefits, Catone was required to periodically report, among other things, any employment, self-employment and volunteer work he had undertaken or income he had earned in the preceding fifteen months on the DOL OWCP Form EN1032 (EN1032). At trial, the government submitted evidence showing that in 2008 Catone completed, signed, and submitted an EN1032 that contained materially false responses. Specifically, the defendant answered in the negative questions about being employed elsewhere or having received any type of money or other compensation for volunteer work done while he was receiving compensation benefits. The government’s evidence included checks made payable to Catone that showed he had worked for and received a salary as a custodian for Angelo Nigro, doing business as Angelo’s Maintenance, from in or around August 2006 to August 2008. Witnesses testified that they regularly saw Catone vacuum, pick up trash, and perform other cleaning services at the Hayes Performing Arts Center in Blowing Rock, N.C. The government’s evidence also showed that the defendant received $132,214.31 (gross amount) in worker’s compensation from April 2007 to September 2009.
In handing down Catone’s sentence, Judge Voorhees stated that the defendant had “reaped financial benefits” from his dishonesty and that he imposed 16 months imprisonment because of “the need to deter others from similar conduct.” In addition to the prison term, Judge Voorhees also ordered Catone to serve three years under court supervision after he is released from prison, and to pay $106,411.83 as restitution.
The defendant was ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation of the case was handled by USPS-OIG. The prosecution for the government was handled by Assistant United States Attorney Kenneth M. Smith of the U.S. Attorney’s Office in Charlotte.
Former Motel Owner, Anil Patel, Guilty of Tax FraudRead the Press Release
ANIL PATEL, age 46, formerly a resident of Metairie, Louisiana, pled guilty in federal court today before U.S. District Court Judge Sarah S. Vance to tax fraud, announced U.S. Attorney Dana Boente.
According to court documents, on August 6, 2009, PATEL signed and filed a 2008 U.S. Individual Income Tax Return (Form 1040) with the Internal Revenue Service. That tax return did not report approximately $426,744 in income, which resulted in $111,378 in tax due and owing to the Internal Revenue Service.
PATEL was the former owner of the Trade Winds and La Village motels that were located on Airline Drive in Metairie, Louisiana. As part of his plea agreement, PATEL agreed to accept responsibility for failing to report $1,373,076 in total unreported income for the tax years 2006 - 2009. As a result, the tax due and owing to the IRS for those years is $393,048. PATEL also previously agreed to pay taxes due and owing to both the parish and state.
Sentencing is set for December 11, 2013 at 9:30 am. PATEL faces a maximum term of imprisonment of 3 years, as well as a fine of $250,000 and 1 year of supervised release following any term of imprisonment.
The case was investigated by the Special Agents of the Internal Revenue Service, detectives of the Jefferson Parish Sheriff’s Office and the prosecution is being handled by Assistant U.S. Attorney Jon Maestri.
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Former Assistant Director at Nicholasville Day Care Pleads Guilty to FraudRead the Press Release
LEXINGTON, KY - A former employee at a child day care center in Nicholasville, KY., admitted defrauding the company out of thousands of dollars.
On Tuesday, Pamela Sandlin, 55, pleaded guilty to a fraud charge in front of U.S. District Judge Karen Caldwell.
Sandlin admitted that, over the course of several years, she fraudulently took thousands of dollars while working as the Assistant Director at the Kids Connection Learning Center (KCLC), a company that annually receives more than $10,000 in federal program funding.
According to her plea agreement, Sandlin was responsible for collecting money from parents, making bank deposits, and documenting financial transactions for KCLC. Court documents also established that Sandlin altered company records to conceal the fraud.
Judge Caldwell has scheduled an evidentiary hearing on December 11 to determine how much money Sandlin took from KCLC. Sandlin will be sentenced during this hearing as well.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Perrye Turner, Special Agent in Charge, FBI, jointly announced the plea today.
The investigation was conducted by the FBI. Assistant U.S. Attorney Ken Taylor represents the U.S. Attorney’s office in this case.
Sandlin faces a maximum of 10 years in prison. However, the Court must consider the U.S. Sentencing Guidelines and the federal statues before imposing a sentence.
Financial Advisor Pleads Guilty to Investment Fraud SchemeRead the Press Release
RENO, Nev. – A former financial advisor with Bank of America has pleaded guilty to fraud and tax evasion charges for defrauding six persons of over $2 million during 2010 and 2011, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Gary H. Lane, 60, of Reno, pleaded guilty on Tuesday, Sept. 3, 2013, before Chief U.S. District Judge Robert C. Jones to 12 counts of mail fraud and five counts of attempt to evade or defeat tax. Lane is scheduled to be sentenced on Dec. 16, 2013, at 9:30 a.m., and faces up to 20 years in prison for each mail fraud count and up to five years in prison on each tax count, as well as fines of up to $250,000 per count.
According to the indictment, Lane was employed as a financial advisor by Bank of America Investment Services, which later merged with Merrill Lynch, until March 2011. During the course of Lane’s employment, he allegedly developed a scheme to entice persons to invest monies with him through the use of an E-Trade account rather than through normal bank procedures. Lane allegedly looked for investors who were elderly or lacked investing experience and had a desire for high returns and aversion to risk. Lane told the investors that their funds would be invested in U.S. Treasury Bonds which would pay better than six percent interest and would mature in two years. Lane corroborated the trades by creating false confirmations and distributing them to the victims by mail. After receiving the monies from the victims, Lane gave them to his spouse who mailed them to her E-Trade account. The monies were then withdrawn at Lane’s direction for his own use or to pay other investors. In actuality, Lane never purchased any U.S. Treasury Bonds with the victims’ monies. In fact, there were never any United States Treasury Bonds that existed with a rate of return of greater than six percent and a maturity period of less than two years.
Using this scheme, the indictment alleges that Lane defrauded approximately six victims of over $2 million between January 2010 and March 2011. Lane also allegedly filed false and fraudulent individual tax returns for the years 2006 through 2010, substantially understating his income and tax due and owing to the IRS.
The case was investigated by the FBI, IRS Criminal Investigation and the Nevada Secretary of State Securities Division, and is being prosecuted by Assistant U.S. Attorney Ronald C. Rachow.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.Felon Sentenced for Possessing A Nine-millimeter PistolRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a felon was sentenced for possessing a nine-millimeter, semi-automatic pistol. United States District Chief Judge Michael J. Davis sentenced Demetrius Demarco Spencer, age unknown, to 80 months in prison. He was indicted on November 14, 2012, and was convicted on January 16, 2013.
According to the indictment and the evidence presented at trial, Spencer possessed the gun on August 23, 2012. On that day, officers on routine patrol outside a Minneapolis nightclub saw Spencer standing in the parking lot. He reached into his pants and removed an “L-shaped” item covered with a white sock. He carried the item to a nearby car and placed it under the front seat. Officers later recovered the item—the nine-millimeter, semi-automatic pistol—from in the sock.
Because he is a felon, Spencer is prohibited under federal law from possessing a firearm at any time. His prior Hennepin County convictions include possession of a pistol by a prohibited person (2003), assault in the third degree (2007), and aggravated robbery (2007). Spencer was also convicted in Ramsey County for possession of a pistol by a prohibited person (2000).This case was the result of an investigation by the Minneapolis Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”). It was prosecuted by Assistant U.S. Attorney Richard Newberry.
The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than two dozen serious habitual criminals through Project Exile Minneapolis.