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3 September 2013
Former New Mexico Probation Officer Pleads Guilty to Sexual Assault and False Statements ChargesRead the Press Release
ALBUQUERQUE – Gordon Chavez, 35, a former probation officer with the New Mexico Department of Corrections Division of Probation and Parole, pleaded guilty today in federal court in Albuquerque, N.M., to charges related to the sexual assault of a probationer whom he supervised. Chavez pleaded guilty to one count of violating the victim’s right to bodily integrity when he touched her against her will. Chavez also pleaded guilty to one count of making material false statements to the FBI when he denied both inappropriately touching females whom he supervised and asking for naked photos of them.
According to court documents, Chavez, a long-time probation officer, engaged in escalating sexually inappropriate behavior toward the victim, a woman under his supervision since May 2012. As part of probation and parole, the victim was required to attend mandatory meetings at Chavez’s office. During one of those meetings on Nov. 26, 2012, Chavez fondled the victim’s breast through and underneath her shirt without the victim’s consent. Chavez was later captured on a recording apologizing for his actions.
During that same Nov. 26, 2012, meeting with the victim, Chavez also instructed the victim to bring revealing photos of herself on her cellular phone to the next office visit scheduled for Nov. 30, 2012. When the victim brought clothed photos of herself, Chavez specifically asked her to bring naked photos. That conversation was also captured on a recording.
On Dec. 4, 2012, FBI agents conducted a recorded interview of Chavez during which he denied inappropriately touching any female under his supervision. He also denied asking any female under his supervision for naked photographs.
During the plea hearing, Chavez acknowledged that his actions toward the victim were wrong and against the law. Chavez further admitted that he lied to the FBI when he was interviewed about his conduct toward females whom he supervised.
As part of the plea agreement, in addition to a prison sentence, Chavez will forfeit his law enforcement certification. A sentencing hearing has not yet been set.
This case was investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorney Mark Baker for the District of New Mexico and Trial Attorney Fara Gold of the Civil Rights Division of the Department of Justice.
Former Madison Art Gallery Owner Pleads GuiltyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, announced that DAVID J. CRESPO, 59, of Guilford, pleaded guilty today before Senior U.S. District Judge Ellen Bree Burns in New Haven to one count of mail fraud stemming from his sale of fraudulent artwork. CRESPO was an art dealer who conducted business under the name Brandon Gallery in Madison.
In August 2012, CRESPO was charged in a 12-count indictment alleging that he defrauded his customers by falsely representing that artwork he sold were original pieces by Pablo Picasso and original signed lithographs by Marc Chagall. CRESPO pleaded guilty to Count 12 of the indictment, which relates to the fraudulent sale of an imitation Marc Chagall lithograph.
According to court documents and statements made in court, Marc Chagall is widely considered to be among the greatest and most influential artists of the 20th Century, and original lithographs of his work can be of substantial valuable. An original lithograph is an authorized reproduction of a piece of artwork, map, or text that has been created using a distinctive printing process. They may be signed by the artist or author and, depending on their condition, can be of substantial value. Unlike other reproduction techniques that rely on the negative image being etched or raised on the print, lithography uses a smooth surface, typically, stone tablets or a metal plate, to transfer the image.
CRESPO obtained reproductions of original Chagall lithographs, but represented to potential customers that they were, in fact, original lithographs that had been produced through an artistic lithographic method, and under the direction and authority of Marc Chagall.
In January 2010, CRESPO met with an undercover FBI agent at Brandon Gallery. During the course of the conversation with the undercover agent, which was recorded, CRESPO held himself out to be an expert in high-end art. CRESPO and the agent discussed a lithograph known as “The Presentation of Chloe,” which CRESPO represented, among other things, was an “original lithograph” that was part of a limited edition collection made from “stone plates” from which multiple impressions were made from “the same plate.” The agent agreed to purchase the purported lithograph for $2,000.
In May 2010, CRESPO shipped the purported lithograph along with a “Certificate of Authenticity,” which valued the piece at $12,750 “for insurance purposes,” stated that piece was “hand signed by Chagall in crayon after the artist personally examined this particular example,” and represented that “[t]his work came from the collection of Richard Riskin, a longtime friend of the artist.”
In fact, CRESPO had not obtained the purported Chagall lithograph from the estate of Richard Riskin, as no such person existed, and CRESPO knew that the piece was not a limited edition original lithograph manufactured under the artist’s direction using stone plates, but was a photo-mechanical production that was removed from a common edition book.
In November 2010, the FBI conducted a search of the Brandon Gallery and found packages of Chagall prints and practiced Chagall signatures.
Judge Burns has scheduled sentencing for November 26, 2013, at which time CRESPO faces a maximum term of imprisonment of 20 years. CRESPO also may be ordered to pay restitution to any victims of his offense.
CRESPO has been released on bond since his arrest on April 3, 2012.
This matter is being investigated by the Federal Bureau of Investigation and the Madison Police Department. The case is being prosecuted by Assistant United States Attorneys Anthony E. Kaplan and Liam Brennan.
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U.S. ATTORNEY'S OFFICE
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(203) 821-3722 [email protected]Former Logan Doctor Sentenced to Nearly 6 Years in Prison in Connection with Federal Pill-mill ProbeRead the Press Release
Makeshift doctor’s office lacked running water, exam table, and medical equipment
CHARLESTON, W.Va. –United States Attorney Booth Goodwin announced today that a former Logan County doctor was sentenced to five years and eleven months in prison for operating a Logan pill mill. Dr. Fernando Gonzales-Ramos, 47, previously pleaded guilty in May to conspiracy to distribute controlled substances without a legitimate medical purpose. The sentence was handed down by United States District Judge John T. Copenhaver, Jr. in Charleston.
“Dr. Gonzales-Ramos wasn’t operating a doctor’s office, he was running a drug den,” said U.S. Attorney Goodwin. “His so-called office had no exam table, no running water, and not even so much as a stethoscope. For thousands of dollars in cash, he was pumping out prescriptions for thousands of units of powerful narcotics.”
“This pill mill did enormous harm across a wide swath of our state and beyond,” said Goodwin. “Doctors swear an oath to do no harm, so it’s especially tragic when someone uses his or her prescription-writing privileges to fuel our region’s worst crime problem. I hope these cases send a message: There are consequences if you abuse your prescription power.”
“The vast majority of physicians prescribe responsibly,” Goodwin continued, “but even a handful of bad doctors can flood our communities with illegal pills. Every time we put a law-breaking doctor out of business, it’s a big step toward getting this problem under control.”
Gonzales-Ramos, who practiced medicine in Logan before moving to Texas in July 2011, began making trips from Texas to West Virginia approximately every three months to operate a cash-only business in Logan. At the time, Gonzales-Ramos also hired a commercial security guard who was armed with a firearm to protect his phony Logan County office. Law enforcement agents also determined during an investigation that the office lacked an exam table, running water and medical equipment.
On March 2, 2013, an individual cooperating with the FBI entered the building that Gonzales-Ramos used as an office and paid $450 cash in exchange for a prescription for the painkiller hydrocodone. Prior to obtaining the prescription, the cooperating individual had not been examined or questioned by anyone. The cooperating individual obtained the prescription from Gonzales-Ramos’s office in less than three minutes.
On March 3, 2013, law enforcement agents executed a search warrant on the building located at 2130 Old Logan Road in Logan. During the execution of the warrant, agents found several individuals waiting inside to get written prescriptions for controlled substances from Gonzales-Ramos.
From September 2011 through March 3, 2013, Gonzales-Ramos ran a cash-only business at the Logan County office where he charged patients $450 for Schedule III controlled substance prescriptions and $500 for Schedule II controlled substance prescriptions. After collecting the cash payments, Gonzales-Ramos directed an associate to make cash deposits into his personal bank accounts. On March 3, 2013, Gonzales-Ramos directed his associate to make two cash deposits of $9,000 and $9,975 into his personal bank accounts.
As part of his plea agreement, Gonzales-Ramos agreed to surrender his Drug Enforcement Administration Certificate of Registration.
The investigation was conducted by the FBI, the U.S. 119 Drug Task Force, the West Virginia State Police, and the Logan County Sheriff’s Department. Assistant United States Attorney Steven Loew handled the prosecution.
This case was 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 prescription 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.
Click here to listen to an audio clip from U.S. Attorney Goodwin
Former Kindergarten Teacher Convicted of Sexually Exploiting ChildrenRead the Press Release
HOUSTON - Stephen Wayne Sudduth, 38, of Sealy, has entered a plea of guilty to two counts of production of child pornography, United States Attorney Kenneth Magidson announced today.
The charges against Sudduth arose as a result of an international investigation conducted by members of the Houston office of Homeland Security Investigations (HSI), the office of the Caribbean Attache for Homeland Security, the Texas Attorney General’s Cybercrime Unit, the Public Prosecutor’s Office in Curacao, a special task force unit in Curacao comprised of Dutch and local law enforcement officers and the equivalent of the juvenile sex crimes unit of the Curacao Police Corps.
The investigation began in 2009 when the Texas Attorney General’s Office received a tip concerning Sudduth. A state search warrant for Sudduth’s residence in Sealy was secured and later executed on July 14, 2009. At that time, officers seized a laptop computer and two external hard drives which all were found to contain child pornography.
During the review of the images, officers observed images that contained Sudduth and images that appeared to have been taken in a classroom. They were able to confirm the classroom was at a school in Curacao and that Sudduth taught kindergarten at that school. Houston HSI agents were then contacted to handle the international aspect of the investigation.
Still images of young girls that constituted child pornography were located and found to have been taken with a digital camera.
In December 2009 and May 2010, HSI agents and a forensic child interviewer traveled to Curacao and were able to identify and interview the children depicted in the images.
U.S. District Judge Nancy Atlas, who accepted the guilty plea, has set sentencing for Nov. 22, 2013, at which time he faces a sentence of at least 15 and up to 30 years in federal prison as well as a possible maximum fine of $250,000. Upon completion of any prison term imposed, Sudduth also faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.Sudduth has been in custody where he will remain pending his sentencing hearing.
This case, prosecuted by Assistant United States Attorney Robert Stabe, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former HISD Elementary Teacher Heads to Prison for 20 Years on Child Pornography ConvictionsRead the Press Release
HOUSTON – A 53-year-old Houston resident has been ordered to federal prison following his convictions of distribution and possession of child pornography, announced U.S. Attorney Kenneth Magidson. Juan Antonio Villarreal pleaded guilty Feb. 19, 2013. At the time, he acknoweldged he had been a third grade teacher at a Houston elementary school. Today, U.S. District Judge Vanessa Gilmore handed Villarreal a sentence of 120 and 240 months for the possession and distribution convictions, respectively. The terms sentences will run concurrently for a total 20-year federal prison term. At the hearing, the court heard evidence demonstrating how Villarreal also tricked an underage female relative into taking nude photographs of herself and sending to him, which he then circulated over the Internet. In handing down the sentence, Judge Gilmore remarked how the photos can never be removed from the Internet. Villarreal will also serve 10 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
The investigation began after a local law enforcement officer downloaded child pornography over the Internet which they traced to a computer Villarreal used.
On Aug. 31, 2012, federal authorities later executed a federal search warrant at Villarreal's residence in Houston. At that time, they discovered several images and videos of child pornography on a thumb drive inserted into a USB port on a Dell Desktop computer located within the residence. One of the videos included a known minor child victim performing oral sex on an adult male.
They also found child pornography on a Dell desktop computer and five additional thumb drives in the residence. A forensic exam on the devices resulted in the discovery of approximately 1425 images and 277 videos of child pornography.
Villarreal had also admitted he had received, viewed and downloaded child pornography for approximately five years.
He has been in custody since his arrest Aug. 31, 2012, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.Assistant U.S. Attorney Robert Stabe prosecuted the case which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Former Danielson Resident Sentenced to 54 Months in Federal Prison for Trading Child PornographyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that DANIEL CARRIER, 34, formerly of Danielson, was sentenced today by Chief U.S. District Judge Alvin W. Thompson in Hartford to 54 months of imprisonment, followed by seven years of supervised release, for possessing and distributing child pornography.
According to court documents and statements made in court, in January 2012, FBI special agents acting in an undercover capacity logged into a publicly-available Internet file sharing program used by CARRIER to trade child pornography. During these sessions, the FBI browsed CARRIER’s shared files, downloaded images from his shared directories and observed file titles suggestive of child pornography.
On March 6, 2012, law enforcement officers searched CARRIER’s Danielson residence and seized a desktop computer and related components. A forensic search of the computer revealed more than 850 images and 187 videos of child pornography, including numerous images of children under the age of 12 engaged in sexually explicit conduct, and images of children engaging in sadistic or masochistic conduct.
CARRIER was arrested on March 7, 2012. On May 15, 2013, he pleaded guilty to one count of receipt and distribution of child pornography.
CARRIER, who was released on a $250,000 bond after his arrest, has been residing with family members in Rhode Island as a condition of his bond.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies, including the Connecticut State Police. The case was prosecuted by Assistant United States Attorney Felice M. Duffy.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Florida Man Pleads Guilty to Controlled Substance ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that Michael Pearlingi, age 44, of Key West, Florida, appeared before U.S. District Judge Roberto A. Lange on August 27, 2013, and pled guilty to Count I of the Indictment that charged him with Conspiracy to Distribute and Possession with Intent to Distribute a Controlled Substance.
The maximum penalty upon conviction is not more than 20 years of imprisonment, a $1,000,000 fine, or both; at least 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 March 14, 2013, wherein a South Dakota Highway Patrol Trooper spoke with occupants of a motor home, including the defendant, when they stopped for fuel. The trooper’s suspicions were heightened during the conversation, and he deployed his service dog that is trained to detect the odor of certain illegal narcotics, including marijuana.
The trooper searched the motor home and found large garbage bags containing marijuana, packaged in approximately one pound bundles. There was also a smaller amount of personal use marijuana in the motor home. The total amount of marijuana found was approximately 113 pounds.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the South Dakota Highway Patrol. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Pearlingi was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for November 7, 2013. Pearlingi’s co-defendant, David Wallace, has pled not guilty and is scheduled for trial on November 5, 2013.Federal Inmate Pleads Guilty to EscapingRead the Press Release
MINNEAPOLIS—Earlier today in federal court, an inmate who escaped from the Federal Prison Camp in Duluth in March 2013 pleaded guilty to that crime. Gerald James Greenfield, age 67, of Bloomington, specifically pleaded guilty to one count of escape from custody. Greenfield, who was charged on April 29, 2013, entered his plea before United States District Judge Patrick J. Schiltz.
In his plea agreement, Greenfield admitted that on March 30, 2013, he left the custody of the federal prison camp without authorization. According to a law enforcement affidavit filed in the case, Greenfield was present for a prisoner count at 4:00 p.m. on March 30. However, he was not present for the prisoner count at 10:00 p.m. He was arrested six days later, on April 5, 2013, at a Burnsville motel. At the time of his escape, he was serving a 50-month sentence following a 2012 conviction in the District of Minnesota for conspiracy to commit money laundering.
For his crime, Greenfield faces a potential maximum penalty of five years in prison, which could be added to his current sentence. Judge Schiltz will determine his sentence at a future hearing, yet to be scheduled.This case is the result of an investigation by the U.S. Marshals Service. It is being prosecuted by Assistant U.S. Attorney Manda M. Sertich.
Federal Grants AnnouncedRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced today that the Department of Justice, Office of Justice Programs, has recently awarded one grant to Louisiana State Police and two grants to Louisiana Commission on Law Enforcement.
Louisiana State Police was awarded $1,551,210 in funding for their DNA Backlog Reduction Program. This program focuses on reducing DNA sample turnaround time, increasing the throughput of public DNA laboratories, and reducing DNA backlogs. These improvements are critical in preventing future DNA backlogs and to help the criminal justice system use the full potential DNA technology.
Louisiana Commission on Law Enforcement received two grants totaling $361,931. Their Juvenile Accountability Block Program was awarded $266,152 and Paul Coverdell Forensic Science Improvement Program was awarded $95,779.
The goal of the Juvenile Accountability Block program is to reduce juvenile offending through accountability-based programs focused on both the juvenile offender and the juvenile justice system. The underlying premise is that young people who violate the law should be held accountable for their actions through the swift, consistent application of graduated sanctions that are proportionate to the offenses, both as a matter of basic justice and as a way to combat juvenile delinquency and improve the quality of life in the nation’s communities.
The Coverdell funds are to be used to improve the quality and timeliness of forensic science and medical examiner services and/or to eliminate backlogs in the analysis of forensic evidence, including controlled substances, firearms examinations, forensic pathology, latent prints, questioned documents, toxicology, and trace evidence.
For more information about these grants, please contact the Office of Justice Program’s Office of Communications at 202-307-0703.
Eagle Butte Man Sentenced for Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on August 29, 2013, by U.S. District Judge Roberto A. Lange.
Phillip LaBatte, age 24, was sentenced to time served, which had been approximately 7 months; 2 years of supervised release; and a $100 special assessment to the Federal Crime Victims Fund.
LaBatte was indicted by a federal grand jury on October 16, 2012, and pled guilty to Count III of the Indictment on June 13, 2013.
The conviction stems from the investigation of burglaries in Eagle Butte. While investigating the burglaries, a Cheyenne River Sioux Tribe detective learned that several juveniles committed the burglaries and that some of the stolen items could be located at LaBatte’s residence. The detective obtained a tribal search warrant for LaBatte’s residence. When law enforcement executed the search warrant, they found, among other things, at least 250 grams, but less than 1 kilogram, of marijuana along with a scale, rolling papers, and a grinder.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
LaBatte was immediately turned over to the custody of the U.S. Marshals Service due to two outstanding warrants in North Dakota on unrelated charges.Eagle Butte Man Found Guilty of Sexual Abuse of A ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that Chad Two Hearts, age 39, of Eagle Butte, South Dakota, has been convicted of Aggravated Sexual Abuse of a Child as a result of a two-day federal jury trial held in Pierre, South Dakota.
This charge carries a maximum of life in prison, a $250,000 fine, or both; at least 5 years and up to life of supervised release; and a $100 special assessment.
Two Hearts, who was previously convicted by the State of South Dakota for second degree attempted rape, was indicted by a federal grand jury for Aggravated Sexual Abuse of a Child on March 13, 2013.
At Two Hearts’ trial, which began on August 27, 2013, the jury heard a taped confession of Two Hearts admitting to the Federal Bureau of Investigation that he sexually abused the victim in Hills, Minnesota. The victim, who was 9 or 10 years old at the time of the sexual abuse and was 18 years old at the time of the trial, testified that the sexual abuse happened in both Minnesota and South Dakota. The jury returned its guilty verdict after deliberating for approximately two hours.
This case was investigated by the Federal Bureau of Investigation, the Cheyenne River Sioux Tribe Law Enforcement Division, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for November 20, 2013.
The defendant was remanded to the custody of the U.S. Marshals Service to await sentencing.District Man Sentenced to 25-Year Prison Term for Fatal Gun Battle in Clay Terrace Neighborhood-Shooting Resulted in the Murder of A 15-Year-Old Innocent Bystander-Read the Press Release
WASHINGTON - Antonio Barnes, 21, of Washington, D.C., was sentenced today to a 25-year prison term for his role in a shootout in which two people were killed, including a 15-year-old bystander, U.S. Attorney Ronald C. Machen Jr. announced. The gunfire took place in 2009 while young children were walking home from school in the Clay Terrace area.
In May 2013, Barnes, along with his co-defendants, Earl Jackson, 20, and Sequarn Tibbs, 22, each pled guilty in the Superior Court of the District of Columbia to two counts of voluntary manslaughter, and one count each of conspiracy, assault with a dangerous weapon, and carrying a pistol without a license. Barnes, also known as “Squirt,” was sentenced by the Honorable Herbert B. Dixon, Jr. Jackson will be sentenced on Sept. 13, 2013 and Tibbs on Nov. 7, 2013.
According to the government’s evidence, on Oct. 13, 2009, Barnes and his co-defendants were members of a group they called “Young Savage” from the 37th Street/37th Place neighborhood of Southeast Washington. Barnes, Jackson, Tibbs, and others, including Tibbs’s identical twin brother, Daquan Tibbs, went to the Clay Terrace neighborhood seeking to avenge a burglary from Jackson’s Clay Terrace home.
The gun battle began after Barnes and his co-defendants entered a common area of Clay Terrace in the early afternoon hours, just as neighborhood schools were letting out, and Sequarn Tibbs opened fire on the Clay Terrace residents who were gathered. A 15-year old innocent bystander, Davonta Artis, was shot and killed during this gun battle. Daquan Tibbs, then 18, also was killed and three other men were seriously injured.
After warrants were issued for their arrests, Barnes, Jackson and Tibbs fled the area. Barnes and Jackson were ultimately arrested in January 2012 in Charlotte, N.C., after they were featured on the “America’s Most Wanted” television program and tips were provided as to their whereabouts. Tibbs was captured in September 2010 in New York.
In announcing today’s sentence, U.S. Attorney Machen commended the work of the detectives of the Metropolitan Police Department’s (MPD) Cold Case/Major Case Squad, officers of the MPD’s Sixth District and the Firearms Unit, and the detective who coordinated the nationwide search for Barnes, Jackson and Tibbs. He also commended the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Alesha Matthews-Yette, Kendra Johnson, Kwasi Fields, Sandra Lane, Meridith McGarrity and Fern Rhedrick; Litigation Technology Specialist Leif Hickling; Intelligence Specialist Lawrence Grasso; Investigative Analyst Zachary McMenamin; Criminal Investigator Durand Odom; Victim/Witness Advocate Marcia Rinker, and Law Clerks Flynn Burke and Cadene Russell.
In addition, he acknowledged the efforts of former Assistant U.S. Attorneys Sean Tonolli, J.P. Cooney, Heather Carlton, and Sharad Khandelwal, who were involved in the investigation and presentation of evidence during the early phases of these cases.
Finally, Mr. Machen commended the work of Assistant U.S. Attorneys Reagan Taylor and Deborah Sines, who indicted and prosecuted the case.
13-301District Man Sentenced to 25-Year Prison Term for Fatal Gun Battle in Clay Terrace Neighborhood-Shooting Resulted in the Murder of A 15-Year-Old Innocent Bystander-Read the Press Release
WASHINGTON - Antonio Barnes, 21, of Washington, D.C., was sentenced today to a 25-year prison term for his role in a shootout in which two people were killed, including a 15-year-old bystander, U.S. Attorney Ronald C. Machen Jr. announced. The gunfire took place in 2009 while young children were walking home from school in the Clay Terrace area.
In May 2013, Barnes, along with his co-defendants, Earl Jackson, 20, and Sequarn Tibbs, 22, each pled guilty in the Superior Court of the District of Columbia to two counts of voluntary manslaughter, and one count each of conspiracy, assault with a dangerous weapon, and carrying a pistol without a license. Barnes, also known as “Squirt,” was sentenced by the Honorable Herbert B. Dixon, Jr. Jackson will be sentenced on Sept. 13, 2013 and Tibbs on Nov. 7, 2013.
According to the government’s evidence, on Oct. 13, 2009, Barnes and his co-defendants were members of a group they called “Young Savage” from the 37th Street/37th Place neighborhood of Southeast Washington. Barnes, Jackson, Tibbs, and others, including Tibbs’s identical twin brother, Daquan Tibbs, went to the Clay Terrace neighborhood seeking to avenge a burglary from Jackson’s Clay Terrace home.
The gun battle began after Barnes and his co-defendants entered a common area of Clay Terrace in the early afternoon hours, just as neighborhood schools were letting out, and Sequarn Tibbs opened fire on the Clay Terrace residents who were gathered. A 15-year old innocent bystander, Davonta Artis, was shot and killed during this gun battle. Daquan Tibbs, then 18, also was killed and three other men were seriously injured.
After warrants were issued for their arrests, Barnes, Jackson and Tibbs fled the area. Barnes and Jackson were ultimately arrested in January 2012 in Charlotte, N.C., after they were featured on the “America’s Most Wanted” television program and tips were provided as to their whereabouts. Tibbs was captured in September 2010 in New York.
In announcing today’s sentence, U.S. Attorney Machen commended the work of the detectives of the Metropolitan Police Department’s (MPD) Cold Case/Major Case Squad, officers of the MPD’s Sixth District and the Firearms Unit, and the detective who coordinated the nationwide search for Barnes, Jackson and Tibbs. He also commended the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Alesha Matthews-Yette, Kendra Johnson, Kwasi Fields, Sandra Lane, Meridith McGarrity and Fern Rhedrick; Litigation Technology Specialist Leif Hickling; Intelligence Specialist Lawrence Grasso; Investigative Analyst Zachary McMenamin; Criminal Investigator Durand Odom; Victim/Witness Advocate Marcia Rinker, and Law Clerks Flynn Burke and Cadene Russell.
In addition, he acknowledged the efforts of former Assistant U.S. Attorneys Sean Tonolli, J.P. Cooney, Heather Carlton, and Sharad Khandelwal, who were involved in the investigation and presentation of evidence during the early phases of these cases.
Finally, Mr. Machen commended the work of Assistant U.S. Attorneys Reagan Taylor and Deborah Sines, who indicted and prosecuted the case.
13-301District Man Pleads Guilty to Sexual Abuse of Child-Five-Year-Old Victim, A Relative, Aided Early Investigation-Read the Press Release
WASHINGTON – A 20-year-old man, of Washington, D.C., has pled guilty to charges stemming from a sexual assault against a five-year-old relative, U.S. Attorney Ronald C. Machen Jr. announced today.
The defendant, who is not identified here to protect the privacy of the victim, pled guilty on Aug. 30, 2013, to one count each of attempted second-degree child sexual abuse and violating the Bail Reform Act. The Honorable Robert E. Morin scheduled sentencing for Nov. 22, 2013. The defendant faces up to 5 1/2 years in prison and also will be required to register as a sex offender for 10 years.
According to the government’s evidence, on May 9, 2013, at approximately 8:50 p.m., the defendant was at the home of a relative in Northeast Washington. During this time, the child and her mother were living temporarily with the same relative and were also in the apartment. The child’s mother, who had momentarily left the home, returned to find the defendant under a blanket with her daughter. The child made an immediate report regarding sexual acts the defendant engaged in with her while her mother was gone.
While this case was pending, the court released the defendant, placing him in the high-intensity supervision program on June 14, 2013. After the June court date, the defendant removed his GPS device, and he did not appear in court as scheduled for a hearing on July 15, 2013. He was re-arrested on a bench warrant on July 26, 2013.
In announcing the plea, U.S. Attorney Machen commended the work of the detectives of the Metropolitan Police Department’s (MPD) Youth Division who were involved in the arrest and investigation of this case. He also expressed his appreciation to Paralegal Specialist D’Yvonne Key, Victim/Witness Advocate Tracey Hawkins, and Assistant U.S. Attorney Mervin A. Bourne, Jr., who investigated and prosecuted the case.
13-300District Man Pleads Guilty to Sexual Abuse of Child-Five-Year-Old Victim, A Relative, Aided Early Investigation-Read the Press Release
WASHINGTON – A 20-year-old man, of Washington, D.C., has pled guilty to charges stemming from a sexual assault against a five-year-old relative, U.S. Attorney Ronald C. Machen Jr. announced today.
The defendant, who is not identified here to protect the privacy of the victim, pled guilty on Aug. 30, 2013, to one count each of attempted second-degree child sexual abuse and violating the Bail Reform Act. The Honorable Robert E. Morin scheduled sentencing for Nov. 22, 2013. The defendant faces up to 5 1/2 years in prison and also will be required to register as a sex offender for 10 years.
According to the government’s evidence, on May 9, 2013, at approximately 8:50 p.m., the defendant was at the home of a relative in Northeast Washington. During this time, the child and her mother were living temporarily with the same relative and were also in the apartment. The child’s mother, who had momentarily left the home, returned to find the defendant under a blanket with her daughter. The child made an immediate report regarding sexual acts the defendant engaged in with her while her mother was gone.
While this case was pending, the court released the defendant, placing him in the high-intensity supervision program on June 14, 2013. After the June court date, the defendant removed his GPS device, and he did not appear in court as scheduled for a hearing on July 15, 2013. He was re-arrested on a bench warrant on July 26, 2013.
In announcing the plea, U.S. Attorney Machen commended the work of the detectives of the Metropolitan Police Department’s (MPD) Youth Division who were involved in the arrest and investigation of this case. He also expressed his appreciation to Paralegal Specialist D’Yvonne Key, Victim/Witness Advocate Tracey Hawkins, and Assistant U.S. Attorney Mervin A. Bourne, Jr., who investigated and prosecuted the case.
13-300Deported Illegal Alien Sentenced to Time-Served for Re-Entering U.S.Read the Press Release
PITTSBURGH - An illegal alien found in Cranberry Twp., Pa., has been sentenced in federal court to time-served on his conviction of re-entry into the United States after deportation, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Olvin Joel Dominguez-Maldanod, 26, of Honduras.
According to information presented to the court, Dominguez-Maldanod, an alien, was removed from the United States by United States Immigration and Customs Enforcement on Jan. 24, 2013. Dominguez-Maldanod, was found on July 25, 2013 in Cranberry Twp.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Immigration and Custom Enforcement for the investigation leading to the successful prosecution of Dominguez-Maldanod.
Cumberland County Armed Robbers Sentenced to 200 Months Imprisonment in Federal CourtRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced xavier deshawn lymas, 24, jessie gomez, 26 , and LIONEL BERNARD NEWMAN, 23, all of Fayetteville. LYUMAS received 200 months imprisonment, followed by 5 years of supervised release; gomez received 200 months imprisonment, followed by 5 years of supervised release; and NEWMAN received 200 months imprisonment, followed by 5 years of supervised release.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Cumberland County Sheriff’s Office, and the Hope Mills Police Department. Assistant United States Attorney Toby Lathan prosecuted the case.
LYMAS, GOMEZ, NEWMAN, and JOSE MORALES were named in an eight-count Indictment filed on October 3, 2012 charging them with crimes related to the robbery of businesses engaged in interstate commerce. On February 19, 2013, LYMAS , NEWMAN, and MORALES pled guilty to Conspiracy to Rob Businesses Engaged in Interstate Commerce, and Using and Carrying a Firearm During a Crime of Violence. On April 11, 2013, GOMEZ pled guilty to the same. MORALES will be sentenced at a later date.
According to the investigation, the group participated in a string of armed robberies in Cumberland County in October 2011. On October 27, 2011, LYMAS, GOMEZ, NEWMAN, and JOSE MORALES, armed with handguns, traveled to the Lake Lynn Short Stop on Gillespie Street in Fayetteville for the purpose of robbing the business. Due to the high volume of customers inside, the group chose instead to rob a person seated in his vehicle in the parking lot. With MORALES acting as the driver and NEWMAN serving as a lookout, LYMAS and GOMEZ robbed the victim at gunpoint.
The group then traveled to a Kangaroo Express store on Natal Street in Fayetteville. Wearing ski masks and gloves, LYMAS, GOMEZ, and NEWMAN entered the store while MORALES acted as the driver. GOMEZ and NEWMAN were armed with handguns. Inside, GOMEZ demanded money from the store clerk and struck the clerk in the head with his handgun. The group fled with cash and other items taken from the store.
The same evening, NEWMAN and an unindicted accomplice robbed a Kangaroo Express store on Hope Mills Road in Hope Mills. NEWMAN and his accomplice entered the store wearing ski masks and gloves. Both brandished handguns. NEWMAN pointed his handgun at a store clerk and demanded cash. The robbers fled with cash and other items.
On October 30, 2011, LYMAS, GOMEZ, and MORALES attempted to rob a Kangaroo Express on Main Street in Hope Mills. With MORALES acting as the driver, LYMAS and GOMEZ entered the store wearing ski masks and gloves, and brandishing handguns. Several Hope Mills police officers were in close proximity conducting surveillance on the store and observed LYMAS and GOMEZ as they entered. The officers followed LYMAS and GOMEZ inside and placed them under arrest before they were able to complete the robbery.Chesterfield Man Convicted of Defrauding Military Personnel and Their DependentsRead the Press Release
RICHMOND, Va. – Vernon Matthews, 42, of Chesterfield, Virginia, pleaded guilty today to Mail Fraud, in violation of Title 18, United States Code, Section 1341. Matthews faces a maximum of 20 years imprisonment, a $250,000 fine, and 3 years of Supervised Release when he is sentenced by United States District Judge Henry E. Hudson on December 6, 2013.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field office; and United States Postal Inspection Service, Richmond Inspector in Charge Keith Fixel made the announcement.
In a statement of facts filed with his plea agreement, Matthews admitted to operating First Capital Group (FCG), located at 4624 Pembroke Boulevard, Suite 102, Virginia Beach, Virginia. He solicited United States Military personnel and their dependents to make investments with FCG, with misrepresentations about how the investment funds would be used, the security of the investments, and the promised amount of returns, which he represented ranged from 4% to 300%. The defendant also misrepresented his affiliation with reputable investment companies and funds, including HB Group and American Funds. In connection with his guilty plea, Matthews admitted that he did not have any relationship with HB Group or American Funds, and no investor funds were provided to either of those companies or any other investment-type company. Instead, the defendant misappropriated the investors’ money, causing it to be used for the defendant’s own personal use and benefit to the investors’ detriment.
The charged mail fraud centered around the defendant’s acts in defrauding investor A.G., a graduate of the U.S. Naval Academy who was attending medical school. Through various communications, Matthews led A.G. to believe her investment monies would be transferred to a mutual fund with a guaranteed 7.27% rate of return. That promised return was later revised to a higher amount (10%-12%), provided A.G. invested additional monies with the defendant. A.G., in turn, invested the following amounts with FCG: $20,000 (12/21/2010); $3,500 (5/18/2012); and $6,000 (10/20/12). Although Matthews had promised that these funds would be put in an investment fund, he did not transfer any of A.G.’s money to that promised destination. When A.G. later tried to withdraw her investment funds, the defendant delayed returning her funds and later mailed her a refund check in the amount of $32,328.55. Upon receipt of the mailing, A.G. attempted to cash the check but it bounced.
Overall, from about July 2010 until about May 2013, Matthews received over $235,600 in funds from the victim investors. The defendant did not invest any of those monies as promised and used the overwhelming majority of the funds for his own benefit.
The investigation was jointly coordinated by the Richmond office of the FBI and the Richmond office of the United States Postal Inspection Service. Assistant United States Attorney Michael Gill is prosecuting the case on behalf of the United States.This investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia. The task force is comprised of several federal and state agencies, including the Virginia Attorney General’s Office. The task force is an investigative arm of the President’s Financial Fraud Enforcement Task Force (FFETF), an interagency national task force.
The FFETF 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.
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.Bowling Green Man Ordered to Pay $14,000 in RestitutionRead the Press Release
A Bowling Green man was ordered to pay more than $14,000 in restitution and sentenced to three years of supervised release after previously pleading guilty to illegally converting funds from the Department of Veterans Affairs, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Mickael C. Jones, age 36, illegally converted the money between May 2009 and December 2010, according to court documents.
Jones’ aunt died in May 2009. She had been receiving monthly VA surviving-spouse pension benefits. Not knowing of her death, the VA continued to make monthly direct deposits into her bank account, and Jones withdrew the money for his for his own use, according to the court documents.
The investigating agency in this case is the Department of Veterans Affairs, Office of Inspector General. The case is being handled by Assistant United States Attorney Thomas A. Karol.
Ashton Sentenced to Life Plus 10 Years in Federal Court for Kidnapping Resulting in Death, Firearm ChargeRead the Press Release
ST. GEORGE, UT – Paul Ashton, age 34, of St. George, Utah, who pleaded guilty to kidnapping and discharging a firearm in connection with the October 2010 kidnapping and death of Bradley Eitner, was sentenced to life plus 10 years Tuesday morning in U.S. District Court in St. George. U.S. District Judge Ted Stewart imposed the sentence.
Ashton pleaded guilty to the charges in May. Ashton admitted that he aided and abetted in the kidnapping of Eitner on Oct. 31, 2010. Ashton admitted he transported the victim from Utah to Arizona where he was killed. Ashton also admitted he aided and abetted in the use and discharge of a firearm during the kidnapping. Eitner was 43 at the time of his death.
Eitner’s body was discovered March 11, 2011, and an autopsy was performed March 14, 2011, by the Coconino County, Arizona, medical examiner. The medical examiner determined that the cause of Eitner’s death was blunt force head trauma and a single penetrating, gunshot wound of the head. The manner of death was homicide.
As a part of the plea agreement, federal prosecutors recommended that the statutory mandatory minimum sentence of life in prison be imposed for the kidnapping resulting in death count and that the statutory minimum sentence of 10 years be imposed for the firearm count. Federal prosecutors also recommended that the 10-year penalty for the firearm count be served consecutive to the life sentence.
The case was prosecuted by Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office and investigated by the FBI.
Armed Career Criminal Gets 15 Years in Prison After Brandishing Firearm at FBI AgentRead the Press Release
Memphis, TN – Eugene Bernardini, 38, of Olive Branch, MS was sentenced Friday evening by U.S. District Judge Samuel H. Mays to 15 years in federal prison for being a convicted felon in possession of ammunition, announced U.S. Attorney Edward L. Stanton III.
According to facts revealed during the sentencing hearing, on November 23, 2012, a Federal Bureau of Investigation (FBI) Special Agent was riding in a car with a friend and the friend’s 12-year-old son on Hacks Cross Road in Memphis, when their vehicle was struck by Bernardini’s vehicle. The FBI agent recommended to his friend that he pull into a parking lot. The driver and the Special Agent exited the vehicle, at which time Bernardini pulled a pistol and pointed it at the agent’s midsection. The FBI agent immediately took possession of the pistol and ordered Bernardini to the ground. Bernardini refused to comply and advanced toward the agent, saying “you won’t shoot.” The gun failed to fire, and the agent ejected the magazine from the weapon.
Bernardini then pulled a knife and advanced on the agent, who discarded the pistol to have his hands free to defend himself. While holding the agent at knife-point, Bernardini grabbed the pistol from the ground, pointed it at the driver of the vehicle who had come to the agent’s aid and then fled the scene. The police were called to the scene by an employee of a nearby business who witnessed the incident. Though the pistol was never recovered, the ejected magazine and ammunition left on the scene were tagged by Memphis Police Department officers, and Bernardini was arrested later that evening in Olive Branch, Mississippi.
Based on his prior convictions for aggravated robbery, robbery and possession of controlled substances with the intent to distribute, Bernardini was sentenced to the 15-year sentence required by the Armed Career Criminal Act. There is no possibility of parole.
This case was investigated by the Project Safe Neighborhoods Unit. Assistant U.S. Attorney Jennifer Webber represented the government.Alabama Woman Sentenced to Jail for Role in <br /> Identity Theft Tax SchemeRead the Press Release
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 Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney for the Middle District of Alabama George L. Beck Jr. 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 purposes 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. Antoinette Djonret was previously sentenced to 12 years in prison.
Assistant Attorney General Keneally and U.S. Attorney Beck commended the efforts of Special Agents of Internal Revenue Service - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Jason H. Poole and Michael Boteler, and Assistant U.S. Attorney Todd Brown, who prosecuted the case.
2 September 2013
Former Kansas Man Sentenced on Federal Tax Evasion ChargeRead the Press Release
KANSAS CITY, KAN. – A former Kansas man was ordered Tuesday to pay $54,926 in back taxes and placed on federal probation for three years for tax evasion, U.S. Attorney Barry Grissom
Kent Price, 57, Kingwood, Texas, pleaded guilty to one count of tax evasion. In his plea he admitted the crimes took place while he and co-defendant Donald Doleshal, 62, Driftwood, Texas, lived in Kansas and were partners and owners of Central States Underwater Contracting, Inc., (CSU), Central States Underwater, Limited (CSUL) and Pilecap, Inc. The companies inspected, surveyed and repaired underwater pipelines, piles, piers, docks and bridges.
In tax years 2002, 2003, 2004 and 2005, Price understated his personal taxable income by a total of more than $340,000.
Price also admitted CSU and Pilecap paid personal expenses for Price and Doleshal that were deducted as business expenses on corporate taxes returns and were not reported as personal income. CSU paid for a Corvette and Saab that were drive by Price and Doleshal’s respective spouses.
Doleshal pleaded guilty to one count of tax evasion. He is set for sentencing Oct. 7.
Grissom commended the Internal Revenue Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
1 September 2013
Place Title HereRead the Press Release
PLACE TEXT HERE
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]New Jersey Man Pleads Guilty to Charges of Travelling to Virginia to Have Sex with MinorRead the Press Release
ALEXANDRIA, Va. –Royce DeWeese, 26, of Cherry Hill, New Jersey, pleaded guilty today to charges of travel with intent to engage in illicit sexual conduct with a minor.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Scot R. Rittenberg, Acting Special Agent in Charge, United States Department of Homeland Security, Homeland Security Investigations (HSI), Washington, D.C., made the announcement after DeWeese’s hearing before United States District Court Judge T. S. Ellis, III.
According to court documents and court proceedings today, between March and May 2013, DeWeese communicated over the Internet with an undercover HSI agent. DeWeese made a plan with the undercover agent to travel to Fairfax, Va. in order to engage in sexual activity with the undercover’s supposed 10-year-old daughter. On May 14, 2013, DeWeese did travel from New Jersey to Fairfax, Va., where law enforcement arrested him.
DeWeese pled guilty to one count of travel with intent to engage in illicit sexual conduct, in violation of 18 U.S.C. § 2423(b), and faces a maximum sentence of 30 years in prison at sentencing, which is scheduled for December 6, 2013.
The investigation was conducted by Homeland Security Investigations with assistance from the Northern Virginia-District of Columbia Internet Crimes Against Children Task Force. Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the U.S. Justice Department’s Criminal Division, are prosecuting the case on behalf of the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.usdoj.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on http://pacer.uspci.uscourts.gov.Hacker Sentenced for Breaking into Medical School Application ComputersRead the Press Release
ALEXANDRIA, Va. – Bosung Shim, 24, of Rockville, MD, was sentenced today to three months in prison, followed by seven months in community confinement and three years of supervised release, for unauthorized access of a protected computer. In addition, Shim was required to pay $31,653.24 in restitution to the victim and forfeit the computer equipment used in the crime.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Kathy A. Michalko, Special Agent in Charge for the United States Secret Service’s Washington Field Office, made the announcement after sentencing by United States District Judge T.S. Ellis, III.
Shim pleaded guilty on October 4, 2013 to one count of computer intrusion. In a statement of facts submitted with the plea agreement, Shim admitted that from approximately June 2011 through December 2012, Shim repeatedly attempted to gain unauthorized access to multiple victims’ computers, specifically the University of Michigan and the Association of American Medical Colleges (“AAMC”). In 2012, over a period of six months, Shim attempted to hack into the AAMC’s computers in order to change his Medical College Admissions Test scores. When Shim was unable to hack into the AAMC’s computers himself, he hired a number of other hackers to do it for him, causing tens of thousands of dollars in damage to the AAMC. Shim also perpetrated related fraud against additional victims, including the National Institutes of Health.
This case was investigated by the United States Secret Service. Special Assistant United States Attorney Peter V. Roman, who is on detail from the Justice Department’s Computer Crime and Intellectual Property Section, and Assistant United States Attorney Ryan K. Dickey 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.Chesterfield Man Pleads Guilty to Production of Child PornographyRead the Press Release
RICHMOND, Va. – Lawrence Paul Sayers, 32, of Chesterfield County, Va., pleaded guilty today to production of child pornography. Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Kenneth T. Cuccinelli, II, Attorney General of Virginia, made the announcement after the plea was accepted by United States Magistrate Judge David J. Novak.
Sayers was indicted on July 16, 2013, by a federal grand jury on four counts of production of child pornography. Sayers faces a mandatory minimum sentence of fifteen years’ imprisonment up to a maximum of thirty years’ imprisonment when he is sentenced on December 12, 2013, by Senior United States District Court Judge Robert E. Payne.
According to a statement of facts filed with the plea agreement, the Chesterfield County Police Department (“CCPD”) executed a search warrant at Sayers’s residence in Chesterfield County on May 12, 2013. During the search, the CCPD recovered two cellular telephones, which were both locked. The CCPD asked the Federal Bureau of Investigation (“FBI”) for assistance in forensically examining the cellular telephones. The forensic examination revealed approximately forty images and five videos depicting an eight-to-nine-year-old female engaged in sexually explicit conduct with an unidentified adult male. On June 28, 2013, after Sayers was advised of his Miranda rights and waived those rights, FBI agents interviewed him. During the interview, Sayers admitted that he was the unidentified adult male engaged in sexually explicit conduct with the juvenile female depicted in the images and videos recovered by the FBI. Sayers also admitted producing the images and videos with his cellular telephones in his residence in Chesterfield County, Va.
This case was investigated by the Chesterfield County Police Department and the Federal Bureau of Investigation. Special Assistant United States Attorney Thomas K. Johnstone IV is prosecuting 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.
30 August 2013
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Frank Piatek, 72, of Elkhart, Indiana pled guilty before District Judge Robert L. Miller Jr. to the felony offense of failure to register as a sex offender.Sentencing has been set for 12/4/2013.This case resulted from an investigation by the US Marshals Service .This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Kelly Ann Norris, 49, of LaPorte, Indiana was sentenced by District Judge Jon E. DeGuilio to 6 months imprisonment, 6 months location monitoring on home detention, 2 years supervised release and $697,000 in restitution after pleading guilty to the felony offense of health care billing fraud.According to documents filed in this case, from 2009 through early 2013, Norris defrauded Indiana Medicaid through fraudulent billing claims.Norris was the owner of Norris Medical Transportation and made claims for reimbursement for transportation services that were never provided.This case was the result of an investigation by the Indiana Attorney General’s Office and the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Brian Edwards, 50, of Fort Wayne, Indiana was sentenced by District Judge Jon E. DeGuilio to 21 months imprisonment, 2 years supervised release and of $400,000 in restitution after pleading guilty to the felony offense of making false statement in connection with a mortgage loan and mortgage insurance.According to documents filed in this case, during 2008 through 2010, Edwards was a licensed loan originator in Fort Wayne, Indiana. Edwards and others involved would sell low-end houses to purchasers unable to qualify for mortgage loans. Thru use of falsified gift letters, Edwards was able to falsely represent borrower assets to qualify individuals for mortgage loans they could not pay.Buyers soon after obtaining the homes could not maintain the locations and the homes went into foreclosure.Edwards knowingly submitted to lenders loan applications containing false representation of borrower assets and phony bank account documentation. The defendant received thousands of dollars from his part of the fraudulent business.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Eugene Jackson, Jr., 33, of Gary, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of possession of a firearm and ammunition by a convicted felon.This charge was filed as a result of an investigation by the ATF HIDTA Task Force and the Hobart Police Department.This case is being prosecuted by Assistant United States Attorney Dean Lanter.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Rick Weatherford, 48, of Ladoga, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 151 months imprisonment and 4 years of supervised release after pleading guilty to the felony offense of conspiracy to possess with the intent to distribute marijuana.The 151 month sentence is to run consecutively with Weatherford’s current sentence.According to documents filed by the government in this case, Weatherford has prior convictions for theft/habitual offender in 1993, murder in 1994 and trafficking with an inmate in 2002. Weatherford orchestrated a large semi-truck load shipment of marijuana that was driven from Texas to Indiana for further distribution.Weatherford took part in this conspiracy while he was incarcerated in the Indiana Department of Corrections with the use of an illegal cellular phone in prison. This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Krystal Puntillo-Raggs, 22, of Hammond, Indiana, was sentenced by Senior District Judge Rudy Lozano to 12 months of probation after pleading guilty to the felony offense of passing counterfeit obligations.According to documents filed in this case, Puntillo-Raggs assisted in the illegal passing of counterfeit obligations at her place of employment in her capacity as a cashier.Her co-defendants would purchase items at her register and give her what she knew to be counterfeit bills as payment.They would later return many of the purchased items in exchange for genuine cash and things of value.This case was the result of an investigation by the United States Secret Service.This case was prosecuted by Assistant United States Attorney Randall Stewart.
Daniel Loy, 32, of South Haven, Indiana, was sentenced by District Judge Joseph Van Bokkelen to the custody of the Bureau of Prisons for a term of 30 months with 3 years of supervised release after pleading guilty to the felony offense of distribution of cocaine.According to documents filed in this case, Loy, in distributing cocaine on 2 occasions, sold approximately 115 grams.Loy has an extensive criminal history that includes a felony conviction and 5 misdemeanor convictions. This case was the result of an investigation by the Federal Bureau of Investigation GRIT Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Jason Rossiter, 30, of Lake Village, Indiana, a defendant in the case US v Humphrey et al., was sentenced by Senior District Judge Rudy Lozano to the custody of the Bureau Of Prisons for a term of 60 months with 3 years of supervised release after pleading guilty to the felony offense of conspiracy to possess with the intent to distribute heroin.According to documents filed in this case, Rossiter was charged along with eight others with participation in a heroin ring operating in the Newton County area. This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorneys Jacqueline Jacobs and Jennifer Chang-Adiga.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Gelacio Martinez, 36, of Sturgis,Michigan, pled guilty before District Judge Roger B. Cosbey to the felony offense of using a communication facility to facilitate a conspiracy to distribute and possession with the intent to distribute a controlled substance.Sentencing has not been set.This case resulted from an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
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.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Shawn Hagler, 35, of Fort Wayne, Indiana pled guilty before District Judge Roger B. Cosbey to the felony offense of armed bank robbery.This case resulted from an investigation by the Federal Bureau of Investigation.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Trey Jackson, 35, of Fort Wayne, Indiana pled guilty before District Judge Roger B. Cosbey to the felony offenses of armed bank robbery and with brandishing and using a firearm during and in relation to a crime of violence.Sentencing has not been set.This case resulted from an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Anthony Geller.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Nicole Sprankles, 40, of Bluffton, Indiana was sentenced by District Judge Theresa L. Springmann to serve 5 months imprisonment and 1 year supervised release after pleading guilty to the felony offense of making a false statement in connection with the acquisition of a firearm.According to documents filed in this case, Sprankles purchased a .40 caliber Glock pistol, model 22 from Parlor City Pawn in Bluffton and lied regarding the true identity of a firearm purchaser. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Harry Esterline, 75, of Fort Wayne, Indiana was sentenced by District Judge Theresa L. Springmann to serve 2 days imprisonment (with credit for time served) and 5 years supervised release after pleading guilty to the felony offense of possession of materials depicting minors engaging in sexually explicit conduct.According to documents filed in this case, Esterline utilized the file sharing software “Limewire” to download video files from the Internet.The files depicted scenes of prepubescent females engaged in sexual activity with adult males.Esterline’s computer was seized and child pornography video files were found on the hard drive. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Alex White, 48, of Fort Wayne, Indiana was sentenced by District Judge Theresa L. Springmann to serve 188 months imprisonment, 3 years of supervised release and $877 in restitution after pleading guilty to the felony offense of robbery with a dangerous weapon.According to documents filed in this case, in October 2012, White entered a Wells Fargo bank, threatened a bank teller and demanded money. White fled the scene with the stolen money.He was arrested several days later due to video footage from the robbery.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Lovita Morris-King.
Two Attorneys Charged in Connection with Rothstein Ponzi SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the arrest of Douglas L. Bates, 54, of Parkland, and Christina M. Kitterman, 38, of Deerfield Beach. Arraignment for Bates is scheduled for September 4, 2013, and arraignment for Kitterman is scheduled for September 6, 2013, both before U.S. Magistrate Judge James M. Hopkins.
According to two indictments unsealed in court earlier today, Bates was charged with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and wire fraud, in violation of Title 18, United States Code, Section 1343 (three counts). Kitterman was charged with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349. Each of the aforesaid counts is punishable up to twenty years’ imprisonment and a fine of $250,000.00.
U.S. Attorney Wifredo A. Ferrer said, “As I have previously stated, the breadth, scope and sheer complexity of Rothstein’s $1.2 billion Ponzi scheme is mind-boggling. The success of such a large-scale scheme depended on the complicity of Rothstein’s colleagues and associates, like Douglas Bates and Christina Kitterman. Bates and Kitterman, both attorneys, are the fifteenth and sixteenth individuals to face criminal charges in connection with this complex financial fraud.”
Acting SAC Michael J. De Palma stated, “Complex financial schemes such as the one orchestrated by Scott Rothstein do not occur in a vacuum. It is sad when you see two attorneys violate the public’s trust by using their law licenses to perpetrate a massive fraud. Together with our law enforcement partners, IRS-CI is committed to aggressively investigating and bringing to justice those who knowingly assist in perpetrating investment scams.”
“The FBI tirelessly pursues those who defraud investors,” said Michael B. Steinbach, Special Agent in Charge, FBI, Miami. “As attorneys, Bates and Kitterman took an oath to act with fairness and integrity but chose to violate that oath to assist Rothstein with perpetrating his massive fraud scheme.”
The acts set forth in the charging documents were all in furtherance of a “Ponzi” scheme involving the sale of purported confidential settlement agreements in sexual harassment and/or whistle blower cases which were purportedly handled by attorneys at the former Ft. Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).
The indictment against Douglas Bates charges that, while he was a partner in the Law Offices of Koppel and Bates, located in Plantation, Florida, he assisted Scott W. Rothstein in defrauding certain clients of RRA by creating a fraudulent and fictitious settlement letter purporting to resolve certain civil litigation to the benefit of RRA’s clients when, in fact, Bates did not represent the alleged party and no such litigation had ever been instituted. Additionally, the indictment charges that Bates drafted false and fraudulent opinion letters claiming to represent an investment group which had a business plan to invest in the confidential settlements which formed the basis for the Ponzi scheme when, in fact, he did not, and claiming that he represented a plaintiff who had entered into one of the confidential settlement agreements when, in fact, he did not. The indictment further alleges that Bates assisted Rothstein by arranging to have representatives of an investment group falsely informed that numerous legal cases were referred by Koppel & Bates to RRA when, in fact, they were not.
The indictment against Christina Kitterman charges that, during the course of the Ponzi scheme, and while she was employed as an attorney at RRA, Kitterman falsely posed as the head of the Ft. Lauderdale office of the Florida Bar Association during a meeting with certain investors and falsely claimed that certain of the RRA bank accounts had been frozen in connection with a pending Bar investigation of Rothstein. According to the indictment, this was done in order to explain to the investors the reason why certain payments due to them had not been made.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, Jeffrey N. Kaplan and Evelyn B. Sheehan.
An Indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tonawanda Man Indicted on Drug ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a grand jury has handed down a two count indictment charging Peter Viera, 20, of Tonawanda, N.Y., with conspiracy to possess with intent to distribute, and to import, methylone, a Schedule I controlled substance. The charges carry a maximum penalty of 20 years in prison, a fine of $1,000,000, or both.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that according to the indictment and the criminal complaint that preceded it, between October 21, 2011, and May 31, 2013, the defendant conspired with others to import from China, obtain, and sell methylone in Western New York. On May 31, 2013, Viera was parked in a car across from the LaSalle Post Office in Niagara Falls, N.Y. observing a co-conspirator pick up a package from the Post Office, which had been sent from China. Unbeknownst to Viera and his co-conspirators -- the package was intercepted two days prior by U.S. Postal inspectors and found to contain approximately one kilogram of methylone.
The indictment is the result of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the United States Postal Inspection Service, under the direction of Kevin Niland, Inspector in Charge, Boston Division,
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Three Former Broker-dealer Employees Plead Guilty in Manhattan Federal Court to Bribery of Foreign Officials, Money Laundering and Conspiracy to Obstruct JusticeRead the Press Release
Three employees of a New York-based U.S. broker-dealer have pleaded guilty for their roles in bribery schemes involving two state economic development banks in Venezuela.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York and Assistant Director in Charge George Venizelos of the New York Office of the FBI made the announcement.
Ernesto Lujan, Jose Alejandro Hurtado and Tomas Alberto Clarke Bethancourt pleaded guilty in New York federal court to conspiring to violate the Foreign Corrupt Practices Act (FCPA), to violate the Travel Act and to commit money laundering, as well as substantive counts of these offenses. These charges relate to a scheme to bribe a foreign official named Maria de los Angeles Gonzalez de Hernandez at Banco de Desarrollo Económico y Social de Venezuela (BANDES), a state economic development bank in Venezuela, in exchange for receiving trading business from BANDES. Lujan, Hurtado and Clarke each also pleaded guilty to an additional charge of conspiring to violate the FCPA in connection with a similar scheme to bribe a foreign official employed by Banfoandes (the “Banfoandes Foreign Official”), another state economic development bank in Venezuela, and to conspiring to obstruct an examination by the U.S. Securities and Exchange Commission (SEC) of the New York-based broker-dealer (the “Broker-Dealer”) where all three defendants had worked, to conceal the true facts of the Broker-Dealer’s relationship with BANDES.
Lujan, 50, and Clarke, 43, entered their guilty pleas yesterday before U.S. Magistrate Judge James C. Francis IV, and Hurtado, 38, pleaded guilty today, also before Judge Francis. The men each pleaded guilty to the same six offenses and face a maximum penalty of five years in prison on each count except money laundering, which carries a maximum penalty of 20 years in prison. Sentencing for Lujan and Clarke is scheduled for Feb. 11, 2014, before U.S. District Judge Paul G. Gardephe. Hurtado is scheduled for sentencing before U.S. District Judge Harold Baer Jr. on March 6, 2014.
According to the informations filed against Lujan, Hurtado and Clarke this week, the criminal complaints previously filed, and statements made during the plea proceedings, Lujan, Clarke and Hurtado worked or were associated with the Broker-Dealer, principally through its Miami offices. In 2008, the Broker-Dealer established a group called the Global Markets Group, which included Lujan, Clarke and Hurtado, and which offered fixed income trading services to institutional clients.
One of the Broker-Dealer’s clients was BANDES, which operated under the direction of the Venezuelan Ministry of Finance. The Venezuelan government had a majority ownership interest in BANDES and provided it with substantial funding. Gonzalez was an official at BANDES and oversaw the development bank’s overseas trading activity. At her direction, BANDES conducted substantial trading through the Broker-Dealer. Most of the trades executed by the Broker-Dealer on behalf of BANDES involved fixed-income investments for which the Broker-Dealer charged the bank a mark-up on purchases and a mark-down on sales.
The Broker-Dealer also conducted business with Banfoandes, another state development bank in Venezuela that, along with its 2009 successor Banco Bicentenario, operated under the direction of the Venezuelan Ministry of Finance. Banfoandes acted as a financial agent of the Venezuelan government in order to promote economic and social development by, among other things, offering credit to low-income Venezuelans. The Banfoandes Foreign Official was responsible for some of Banfoandes’s foreign investments.
Court records state that from early 2009 through 2012, Lujan, Clarke and Hurtado participated in a bribery scheme in which Gonzalez allegedly directed trading business she controlled at BANDES to the Broker-Dealer, and in return, agents and employees of the Broker-Dealer split the revenue the Broker-Dealer generated from this trading business with Gonzalez. During this time period, the Broker-Dealer generated over $60 million in mark-ups and mark-downs from trades with BANDES. Agents and employees of the Broker-Dealer, including Lujan, Clarke and Hurtado, devised a split with Gonzalez of the commissions paid by BANDES to the Broker-Dealer. Emails, account records and other documents collected from the Broker-Dealer and other sources reveal that Gonzalez allegedly received a substantial share of the revenue generated by the Broker-Dealer for BANDES-related trades. Specifically, Gonzalez allegedly received kickbacks and payments from Broker-Dealer agents and employees that were frequently in six-figure amounts.
To further conceal the scheme, the kickbacks to Gonzalez were often paid using intermediary corporations and offshore accounts that she held in Switzerland, among other places. For instance, Lujan, Clarke and Hurtado used accounts they controlled in Switzerland to transfer funds to an account Gonzalez allegedly controlled in Switzerland. Additionally, Hurtado and his spouse received substantial compensation from the Broker-Dealer, portions of which Hurtado transferred to an account allegedly held by Gonzalez in Miami and to an account held by an associate of Gonzalez in Switzerland. Hurtado also sought and allegedly received reimbursement from Gonzalez for the U.S. income taxes he had paid on money that he used to make kickback payments to Gonzalez. Lujan and Clarke also derived substantial profit from their roles in the bribery scheme.
According to court records, beginning in or about November 2010, the SEC commenced a periodic examination of the Broker-Dealer, and from November 2010 through March 2011 the SEC’s examination staff made several visits to the Broker-Dealer’s offices in Manhattan. In early 2011, Lujan, Clarke and Hurtado discussed their concern that the SEC was examining the Broker-Dealer’s relationship with BANDES and asking questions regarding certain emails and other information that the SEC examination staff had discovered. Lujan, Clarke and Hurtado agreed that they would take steps to conceal the true facts of the Broker-Dealer’s relationship with BANDES, including deleting emails. Lujan, Clarke and Hurtado then, in fact, deleted emails. Additionally as part of this effort to obstruct the SEC examination, Clarke lied to SEC examination staff in response to an interview question about his relationship to an individual who had received purported foreign associate payments relating to BANDES.In a related scheme, from 2008 through mid-2009, Lujan, Clarke and Hurtado paid bribes to the Banfoandes Foreign Official, who, in exchange, directed Banfoandes trading business to the Broker-Dealer.
Gonzalez was charged in a criminal complaint and arrested on May 3, 2013, in connection with the BANDES bribery scheme. The charges against Gonzalez are merely accusations, and she is presumed innocent unless and until proven guilty.
This ongoing investigation is being conducted by the FBI, with assistance from the SEC and the Justice Department’s Office of International Affairs.
Assistant Chief James Koukios and Trial Attorneys Maria Gonzalez Calvet and Aisling O’Shea of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Harry A. Chernoff and Jason H. Cowley of the Southern District of New York’s Securities and Commodities Fraud Task Force are in charge of the prosecution. Assistant U.S. Attorney Carolina Fornos is responsible for the forfeiture aspects of the case.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.Three Former Broker-Dealer Employees Plead Guilty in Manhattan Federal Court to Bribery of Foreign Officials, Money Laundering, and Conspiracy to Obstruct JusticeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Mythili Raman, the Acting Assistant Attorney General for the Criminal Division of the United States Department of Justice (“DOJ”), and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that ERNESTO LUJAN, JOSE ALEJANDRO HURTADO, and TOMAS ALBERTO CLARKE BETHANCOURT pled guilty in Manhattan federal court to conspiring to violate the Foreign Corrupt Practices Act (the “FCPA”), to violate the Travel Act, and to commit money laundering, as well as substantive counts of these offenses. These charges relate to a scheme to bribe a foreign official named Maria de los Angeles Gonzalez de Hernandez (“Gonzalez”) at Banco de Desarrollo Económico y Social de Venezuela (“BANDES”), a state economic development bank in Venezuela, in exchange for receiving trading business from BANDES. LUJAN, HURTADO, and CLARKE each also pled guilty to an additional charge of conspiring to violate the FCPA in connection with a similar scheme to bribe a foreign official employed by Banfoandes (the “Banfoandes Foreign Official”), another state economic development bank in Venezuela, and to conspiring to obstruct an examination by the U.S. Securities and Exchange Commission (“SEC”) of the New York-based broker-dealer (the “Broker-Dealer”) where all three defendants had worked, to conceal the true facts of the Broker-Dealer’s relationship with BANDES. LUJAN and CLARKE entered their guilty pleas yesterday before U.S. Magistrate Judge James C. Francis, IV, and HURTADO pled guilty today, also before Judge Francis.
According to the Informations against LUJAN, HURTADO, and CLARKE filed this week, the allegations in the previously filed criminal Complaints, statements made during the plea proceedings, and other documents filed in Manhattan federal court:
At all times relevant to the charges, LUJAN, CLARKE, and HURTADO worked or were associated with the Broker-Dealer, principally through its Miami offices. In 2008, the Broker-Dealer established a group called the Global Markets Group, which included LUJAN, CLARKE, and HURTADO, and which offered fixed income trading services to institutional clients.
One of the Broker-Dealer’s clients was BANDES, which operated under the direction of the Venezuelan Ministry of Finance. The Venezuelan government had a majority ownership interest in BANDES and provided it with substantial funding. Gonzalez was an official at BANDES and oversaw the development bank’s overseas trading activity. At her direction, BANDES conducted substantial trading through the Broker-Dealer. Most of the trades executed by the Broker-Dealer on behalf of BANDES involved fixed income investments for which the Broker-Dealer charged the bank a mark-up on purchases and a mark-down on sales.
The Broker-Dealer also conducted business with Banfoandes, another state development bank in Venezuela that, along with its 2009 successor, Banco Bicentenario, operated under the direction of the Venezuelan Ministry of Finance. Banfoandes acted as a financial agent of the Venezuelan government in order to promote economic and social development by, among other things, offering credit to low-income Venezuelans. The Banfoandes Foreign Official was responsible for some of Banfoandes’s foreign investments.
The Defendants’ Bribery Schemes
From early 2009 through 2012, LUJAN, CLARKE, and HURTADO, participated in a bribery scheme in which Gonzalez directed trading business she controlled at BANDES to the Broker-Dealer, and in return, agents and employees of the Broker-Dealer split the revenue the Broker-Dealer generated from this trading business with Gonzalez. During this time period, the Broker-Dealer generated over $60 million in mark-ups and mark-downs from trades with BANDES. Agents and employees of the Broker-Dealer, including LUJAN, CLARKE and HURTADO, devised a split with Gonzalez of the commissions paid by BANDES to the Broker-Dealer. Emails, account records, and other documents collected from the Broker-Dealer and other sources reveal that Gonzalez received a substantial share of the revenue generated by the Broker-Dealer for BANDES-related trades. Specifically, Gonzalez received millions in kickback payments from Broker-Dealer agents and employees.
To further conceal the scheme, the kickbacks to Gonzalez were often paid using intermediary corporations and offshore accounts that she held in Switzerland, among other places. For instance, LUJAN, CLARKE, and HURTADO used accounts they controlled in Switzerland to transfer funds to an account Gonzalez controlled in Switzerland. Additionally, HURTADO and his spouse received substantial compensation from the Broker-Dealer, portions of which HURTADO transferred to an account held by Gonzalez in Miami and to an account held by an associate of Gonzalez in Switzerland. HURTADO also sought and received reimbursement from Gonzalez for the U.S. income taxes he had paid on money that he used to make kickback payments to Gonzalez. LUJAN and CLARKE also derived substantial profit from their roles in the bribery scheme.
The Defendants’ Efforts to Obstruct the SEC Examination
Finally, beginning in or about November 2010, the SEC commenced a periodic examination of the Broker-Dealer, and from November 2010 through March 2011 the SEC’s examination staff made several visits to the Broker-Dealer’s offices in Manhattan. In early 2011, LUJAN, CLARKE, and HURTADO discussed their concern that the SEC was examining the Broker-Dealer’s relationship with BANDES and asking questions regarding certain emails and other information that the SEC examination staff had discovered. LUJAN, CLARKE, and HURTADO agreed that they would take steps to conceal the true facts of the Broker-Dealer’s relationship with BANDES, including deleting emails. LUJAN, CLARKE, and HURTADO then, in fact, deleted emails. Additionally as part of this effort to obstruct the SEC examination, CLARKE lied to SEC examination staff in response to an interview question about his relationship to an individual who had received purported foreign associate payments relating to BANDES.
In a related scheme, from 2008 through mid-2009, LUJAN, CLARKE, and HURTADO paid bribes to the Banfoandes Foreign Official, who, in exchange, directed Banfoandes trading business to the Broker-Dealer.
LUJAN, 50, CLARKE, 43, and HURTADO, 38, each pled guilty to the same six offenses. A chart containing the charges and the maximum penalties they carry is attached. Sentencing for Lujan and Clarke is scheduled for February 11, 2014, before U.S. District Judge Paul G. Gardephe. Hurtado is scheduled for sentencing before U.S. District Judge Harold Baer, Jr. on March 6, 2014.
Gonzalez was charged in a criminal Complaint and arrested on May 3, 2013, in connection with the BANDES bribery scheme. The charges against Gonzalez are merely accusations and she is presumed innocent unless and until proven guilty.
Mr. Bharara praised DOJ's Criminal Division’s Fraud Section and Office of International Affairs and the FBI for their work in the investigation. He also thanked the SEC for its assistance in this case and noted that the investigation is continuing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force and the Fraud Section of the DOJ Criminal Division. Assistant United States Attorneys Harry A. Chernoff and Jason H. Cowley, and Fraud Section Assistant Chief James Koukios and Trial Attorney Maria Gonzalez Calvet are in charge of the prosecution. Assistant United States Attorney Carolina Fornos is responsible for the forfeiture aspects of the case.
Additional information about the Justice Department’s FCPA enforcement efforts can be
found at www.justice.gov/criminal/fraud/fcpa.
Click here to view chart(s)
U.S. v. Ernesto Lujan Information
U.S. v. Tomas Alberto Bethancourt Clarke Information
U.S. v. Jose Alejandro Hurtado InformationTexas Man Convicted of Falsifying Tax ReturnsRead the Press Release
HOUSTON – Cedric Keith Oliphant has entered a plea of guilty for falsifying client returns, United States Attorney Kenneth Magidson announced today along with Bernard Butler, acting special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI).
“Tax return preparers have a duty to their clients to prepare accurate tax returns that comply with the tax laws,” stated Butler. “IRS-CI endeavors to protect revenue by identifying, investigating and recommending prosecution of abusive return preparers. Always remember, it is your responsibility to know what is on your income tax return because ultimately, you are responsible for all the information filed with the IRS.”
According to the factual basis in support of the plea, Oliphant claimed false deductions for local clients that fraudulently increased tax refunds by approximately $325,000 for tax years 2006 through 2008. The tax service establishment he owned closed in March 2012 following her arrest.
On or about Feb. 6, 2008, Oliphant knowingly prepared and caused to be filed with the IRS a false 2007 U.S. Individual Income Tax Return – Form 1040 for a taxpayer and fee-paying client in need of tax return preparation services. Without consent of the taxpayer, Oliphant included certain materially false deductions with the intention of generating an excessive federal income tax refund and causing a direct pecuniary harm of several thousand dollars to the IRS.
Specifically, during his plea hearing today, Oliphant admitted he knowingly and willfully included materially false deductions for gifts to charity and for unreimbursed business expenses a client’s 2007 tax return. This tax return alone caused a loss to the U.S. Treasury in the approximate amount of $11,261.
Oliphant also admitted he had knowingly and willfully prepared and filed dozens more false federal income tax returns for other clients for tax years 2006 through 2008 that generated excessive refunds and cause aggregate losses to the IRS of totaling approximately $325,000.
The plea agreement requires Oliphant make full restitution to the IRS for the fraudulent refunds.
U.S. District Judge Melinda Harmon, who accepted the guilty plea, has set a sentencing date of Nov. 22, 2013, at which time Oliphant faces up to three years in prison and $250,000 fine. Oliphant has been permitted to remain on bond until that hearing.
The investigation leading to these charges was conducted by IRS-CI. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Rochester Attorney Pleads Guilty to Filing False Tax ReturnsRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Salvatore J. Marcera, Jr., 52, of Rochester, N.Y., pleaded guilty before U.S. District Judge Frank P. Geraci, Jr., to four felony charges of filing a false personal income tax return. Each count carries a maximum penalty of three years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Frank H. Sherman, who is handling the case, stated that the defendant, a sole practitioner attorney in Rochester, acknowledged that the Government's proof would be sufficient to obtain a conviction on each of the four counts charging Marcera with filing a false tax return for tax years 2004 through 2007. The defendant understated the gross receipts of his law practice on the Schedule C of each return. The total of the unreported gross receipts for the four tax years as shown by the Government's proffered evidence was approximately $356,353. The Government offered evidence that, if the true gross receipts had been reported by defendant for each of the years in question, the total for the four years of additional tax due and owing would be $104,074.00.
The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Toni Weirauch, New York Field Office.
Sentencing is scheduled for January 7, 2014, at 3:30 p.m. before Judge Geraci.Registered Sex Offender Sentenced to Ten Years in Federal Prison for Possessing Child PornographyRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Kyle Splattstoesser, age 43, of Ritzville, Washington, was sentenced after having previously pleaded guilty on May 14, 2013 to Possession of Child Pornography. Senior United States District Court Judge Robert Whaley sentenced Splattstoesser to a ten-year term of imprisonment, to be followed by a life-term of court supervision after he is released from Federal prison. Splattstoesser has a prior federal conviction in 2006 for Possession of Child Pornography and is a registered sex offender.
According to information disclosed during the court proceedings, in March of 2010, the Federal Bureau of Investigation and Grant County Sheriff's Office conducted an investigation of a mother using her children to produce images of child pornography. The mother, Pamela Ortega, plead guilty to three counts of Rape of a Minor and was sentenced in Washington State to 300 months imprisonment. As a result of the investigation into Ortega, law enforcement determined that one of the individuals she was communicating with about child pornography images was Kyle Splattstoesser. On April 29, 2011, the FBI executed a search warrant at Splattstoesser's residence and ultimately located a laptop computer that contained images of child pornography.
Michael C. Ormsby stated: "The United States Attorney's Office in the Eastern District of Washington continues to prosecute aggressively and seek appropriate punishment for child pornography crimes. The successful prosecution of this case is the direct result of the strong working partnership between Federal and local law enforcement officers in the Eastern District of Washington."
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative ("PSC") has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue child victims;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted the Federal Bureau of Investigation and the Grant County Sheriff's Office. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
CR-12-0137-RHW
Racine Man Indicted in Federal Court with Illegally Making and Selling FirearmsRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin announced that on August 27, 2013, a federal grand jury indicted Donald W. Rees (age: 42) of Racine, Wisconsin for illegally making, possessing, and transferring homemade pipe guns. Rees was charged with two counts of illegally making firearms in violation of 26 U.S.C. section 5861(f), two counts of possessing an unregistered firearm in violation of section 5861(d), and two counts of illegally transferring a firearm in violation of section 5861(e). Each of the six counts charged carries a maximum possible imprisonment for not more than ten years, a fine of not more than $250,000, or both, plus a mandatory $100 special assessment and a term of supervised release not to exceed three years.
The indictment alleges that Rees made seven homemade pipe guns and sold these guns on two separate occasions. The firearms were described as destructive devices in the form of slam-type weapons, each consisting of two sections of metal pipe, one of which would slide into the other, with the wider pipe having an end cap through which a metal screw extends into the pipe to act as a firing pin to contact the primer in order to expel the ammunition out of the weapon when the pipes are pushed together.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and will be prosecuted by Assistant United States Attorney Mel S. Johnson.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Plainview, Texas, Man Faces up to 30 Years in Federal Prison for Producing Child PornographyRead the Press Release
LUBBOCK, Texas—Jose Francisco Madrigal, 43, of Plainview, Texas, appeared today before U.S. District Judge Sam R. Cummings and pleaded guilty to one count of production of child pornography. Madrigal, who is on bond, faces a statutory penalty of not less than 15 years or more than 30 years in federal prison, a $250,000 fine and up to a lifetime of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In October 2012, according to plea documents filed in the case, Madrigal, using a digital camera and aiming the camera through a hole in a bathroom wall, took sexually explicit videos of a female child, while the child was taking a shower.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Plainview Police Department. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Philadelphia Man Found Guilty of Involuntary Manslaughter in Death of 13 Year Old BoyRead the Press Release
Jackson, Miss – Christopher Thompson, Jr., 24, of Philadelphia, Mississippi, a member of the Mississippi Band of Choctaw Indians, was found guilty today of involuntary manslaughter in the death of a 13-year old Choctaw male in the Bogue Chitto community of the Choctaw Indian reservation in Kemper County, announced U.S. Attorney Gregory K. Davis. The criminal trial was held before U.S. District Judge Daniel P. Jordan, III, in Jackson.
Thompson was indicted on June 5, 2012 for involuntary manslaughter committed in three different ways: driving recklessly, driving drunk, and driving in a grossly negligent manner. The jury found him guilty of having committed the crime in all three manners.
On July 3, 2011, at approximately 10:30 a.m., Thompson, after having been drinking almost continuously for 12 hours, Thompson drove himself and his girlfriend down Sonny Jones Road in the Bogue Chitto community. As he was driving, he veered across the center line, into the oncoming lane, and hit a 13-year old Choctaw male who was riding his bicycle. After striking the child, Thompson veered off the shoulder of the road and the vehicle rolled over. Emergency personnel responded to the scene and the 13-year old was taken to the hospital, where he later died from his injuries. Thompson was also taken to the hospital, where it was determined that his blood alcohol level was .21% - over twice the legal limit.
Thompson is scheduled to be sentenced on November 19, 2013 at 9:00 a.m. and faces a maximum penalty of eight years in prison and a $250,000 fine.
This case was investigated by the Choctaw Police Department, Neshoba County Sheriff’s Office, East Neshoba Volunteer Fire Department, Mississippi Department of Public Safety, Mississippi Highway Patrol, Mississippi Bureau of Investigation, and the Federal Bureau of Investigation. Assistant United States Attorneys Patrick Lemon and Mike Hurst prosecuted the case.
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Pennsylvania Man Pleads Guilty to Production of Child PornographyRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Randall Lose, 36, of Howard, Pennsylvania, pleaded guilty before U.S. District Judge Richard J. Arcara, to production of child pornography. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum penalty of 30 years, a fine of $250,000, or both.
Assistant U.S. Attorney Maura K. O'Donnell, who is handling the case, stated that the investigation was initiated by the City of Tonawanda Police Department after receiving a complaint from the parent of a minor victim. The information was then forwarded to the FBI. During the investigation, it was determined that the defendant, who resided in Pennsylvania, used the Internet to communicate with a minor female living in Western New York. Lose instructed her to engage in various sexual acts, on camera, which he then viewed via Skype and recorded.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Steven L. Lanser and the City of Tonawanda Police Department, under the direction of Chief William Strassburg.
Sentencing is scheduled for January 27, 2014, at 12:30 p.m. before Judge Arcara.Owner of “Mail Drop” Convicted of Manufacturing and Selling Counterfeit PostageRead the Press Release
HOUSTON – Susan Spiegel, the former owner of Postal Connections of America, has pleaded guilty to one count of mail fraud, United States Attorney Kenneth Magidson announced today along with Inspector in Charge Robert Wemyss, of the U.S. Postal Inspection Service (USPIS). Spiegel, 70, of Tomball, admitted she caused a loss to U.S. Postal Service (USPS) of more than $39,000.
Postal Connections was a commercial mail receiving agency, or “mail drop,” located in Houston, which was a private business that acts as an agent for receiving and delivering the recipient’s mail. Spiegel had primary responsibility for the daily operations of the business, to include online stamp purchases.
After examining nearly 2000 individual pieces of outgoing mail, investigators determined Spiegel purchased legitimate postage using her company’s Stamps.com account, duplicated it and applied the counterfeit postage to outgoing mail - which was ultimately delivered by the USPS.
Used and re-used sheets of online stamps and more than 1,000 individual counterfeit postage stamps of various denominations were seized from Spiegel’s business. The oldest duplicated stamp dated back to an original print date in 2009. Over time, the investigation revealed a drastic decline in legitimate postage purchased by Postal Connections from Stamps.com.
“The health and success of the Postal Service depends upon strong and aggressive revenue protection,” said Wemyss. “We will continue to identify and pursue dishonest mailers who deliberately avoid proper payment of postage.”U.S. District Judge Lynn Hughes, who accepted the guilty plea, has set sentencing for Sept. 23, 2013. At that time, she faces a maximum punishment of 20 years imprisonment and/or a $250,000 fine. In addition, Spiegel faces a forfeiture money judgment in the amount of $39,256.92 for losses incurred by the USPS.
This case was investigated by the USPIS and is being prosecuted by Special Assistant United States Attorney Tammie Y. Moore.
Orleans County Man Indicted on Drug and Gun ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a grand jury has handed down a four count indictment charging Allen M. Young, 37, of Barker, N.Y., with possession with intent to distribute and distribution of methylone, a Schedule I controlled substance, conspiracy, possession with intent to distribute marijuana, and being a felon in possession of firearms and ammunition. The charges carry a maximum penalty of 20 years in prison, a fine of $1,000,000, or both.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that according to the indictment and the criminal complaint that preceded it, between December 1, 2012, and February 14, 2013, the defendant conspired with others to obtain and sell methylone in Western New York. On December 13, 2012, while members of the Orleans County Major Felony Crime Task Force were attempting to execute a search warrant on Young and his car, he fled at a high rate of speed before crashing the car in Ridgeway, N.Y. The defendant fled the scene on foot, and nine rounds of .50 caliber ammunition were found in the car. Two days later, a backpack, later identified as Young's and containing 1.8 pounds of methylone, was found abandoned in the woods near the scene of the crash.
Young was subsequently arrested in Erie, Pennsylvania, on February 14, 2013, and has been in custody ever since. The defendant, who was convicted of a felony offense in Orleans County in 2009, was also charged with possessing seven firearms and the aforementioned .50 caliber ammunition between January 1, 2011, and April 5, 2013, and with possession of marijuana with intent to distribute, also on December 13, 2012.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The indictment is the result of an investigation on the part of the Orleans County Major Felony Crime Task Force, under the direction of District Attorney Joseph Cardone and Sheriff Scott D. Hess, and the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division.New Orleans Woman, Renata Foreman, Charged with Financial Aid FraudRead the Press Release
FOREMAN, RENATA R., age 33, a resident of New Orleans, was charged in a three count bill of information filed today with theft of government funds, mail fraud and identity theft related to her scheme to defraud the U.S. Department of Education, announced U.S. Attorney Dana J. Boente.
According to the Bill of Information, FOREMAN fraudulently obtained financial aid funds in the amount of $191,617 from several Louisiana and online universities. As part of her scheme to defraud, FOREMAN applied for admission and financial aid in her name and in the name of nine individuals without their knowledge or consent. By falsifying high school graduation information and supplying forged transcripts, FOREMAN induced universities to admit her and others based on false information. FOREMAN also misrepresented her income and other applicant’s income in order to maximize the federal financial aid she illegally received.
If convicted, FOREMAN faces up to 10 years in prison and a fine of $250,000 as to Count 1; 20 years in prison and a fine of $250,000 as to Count 2; and 15 years in prison and a fine of $250,000 as to Count 3. FOREMAN also faces three (3) years of supervised release following any term of imprisonment, and a $300 special assessment.
U.S. Attorney Dana J. Boente reiterated that the bill of information is merely a charge and the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the U.S. Department of Education-Office of Inspector General, and U.S. Postal Inspection Service. This case is being prosecuted by Assistant U.S. Attorney Julia K. Evans.(Download Bill of Information )
New Jersey Truck Driver Sentenced for Drug TraffickingRead the Press Release
LAREDO, Texas– Rigoberto Torres, 39, a legal permanent resident from New Jersey, has been ordered to federal prison as a result of his conviction of possession with intent to distribute more than 100 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. Torres pleaded guilty May 13, 2013.
Today, Senior U.S. Senior District Judge George P. Kazen handed Torres a term of 46 months. He is expected to face deportation proceedings following completion of his federal prison sentence.
On Aug. 28, 2012, Torres was arrested at the U.S. Border Patrol (BP) checkpoint on Interstate 35, approximately 29 miles north of Laredo, after he was discovered carrying numerous bundles of marijuana.
Torres was driving a tractor trailer and BP drug dogs alerted to the presence of narcotics during primary inspection. Agents searched the trailer and discovered 171 kilograms of marijuana hidden behind an after-market wall, inside the trailer. Agents learned that Torres had purchased the drug-laden trailer in Edinburg and intended to deliver the marijuana to Atlanta, Ga., in return for $20,000.
Torres, who initiated his trip in New Jersey, gave multiple inconsistent statements regarding his trip and trailer load. Upon further investigation, it was discovered that four days prior to this arrest, Torres had been previously detained by Texas Department of Public Safety (DPS) officers for traffic violations. Torres gave a false story to officers regarding his reasons for business in the State of Texas.
Torres was permitted to remain on bond and voluntarily surrender to the United States Marshals Service in the near future.
Drug Enforcement Administration investigated along with BP and DPS. Assistant U.S. Attorneys Sanjeev Bhasker and Elizabeth Rabe prosecuted the case.
New Haven Man Sentenced to Five Years in Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that FREEMAN LEWIS, also known as “Free,” 31, of New Haven, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 60 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.
LEWIS is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants and seizures of narcotics and firearms. The investigation revealed that LEWIS conspired with others to purchase and redistribute crack cocaine.
On January 17, 2013, LEWIS pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of cocaine base (“crack”).
LEWIS’ criminal history includes multiple felony convictions, including felony drug convictions.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys S. Dave Vatti and Marc Silverman.
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POCATELLO – Noe Gonzalez, 29, of Nampa, Idaho, pleaded guilty yesterday in United States District Court in Pocatello to conspiracy to distribute and possess with intent to distribute 93.53 grams of methamphetamine, U.S. Attorney Wendy J. Olson announced.
According to court records, on February 12, 2013, Idaho State Police stopped Gonzalez and his passenger for a traffic violation. Gonzalez provided a false identification document to the officer. Subsequently, police found drug paraphernalia and a handgun inside the vehicle. Gonzalez and his passenger were arrested and the vehicle impounded. When the vehicle was searched pursuant to a search warrant, police discovered a white tube sock containing four baggies of methamphetamine hidden in the dash and 9 millimeter handgun ammunition hidden in a void above the glove box. Forensic examination of the methamphetamine by the Idaho State Lab determined its total weight to be 93.53 grams.
The charge of conspiracy to distribute is punishable by ten years up to life in prison, a maximum fine of $10 million, and at least five years supervised release.
Sentencing is set for November 18, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The charges are the result of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), led by the Idaho State Police and Federal Bureau of Investigation. Other federal agencies participating in the OCDETF program are the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Montana Man Pleads Guilty to Illegally Possessing FirearmRead the Press Release
COEUR D’ALENE – Allen Farris Wright, 21, of Libby, Montana, pleaded guilty today in United States District Court in Coeur d’Alene, to unlawful possession of a firearm, U.S. Attorney Wendy J. Olson announced. Wright was indicted by a federal grand jury in Idaho on March 19, 2013.
According to court documents, Wright is prohibited from possessing firearms due to his prior conviction for burglary in San Joaquin County, California, a felony offense punishable by a term of imprisonment exceeding one year. On January 11, 2011, Wright unlawfully possessed a Ruger .357 Magnum firearm.
The charge of unlawful possession of a firearm is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for December 3, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Coeur d’Alene.
The case was investigated by the North Idaho Violent Crimes Task Force (NIVCTF). NIVCTF members include the Federal Bureau of Investigation, the Idaho State Police, Kootenai County Sheriff's Office, Shoshone County Sheriff's Office, Bonner County Sheriff's Office, Coeur d'Alene Police Department, Post Falls Police Department, and Coeur d'Alene Tribal Police. The NIVCTF investigates a myriad of violent crimes, including armed robbery, kidnapping, felonious assault and drug trafficking.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Maryland Man Sentenced to Four Years in Prison for Involuntary Manslaughter in Traffic Fatality in Northeast Washington-Impaired Driver Struck Pedestrian, Who Was in A Crosswalk-Read the Press Release
WASHINGTON – Joel R. Bromwell, 32, of Annapolis, Md., was sentenced today to four years in prison on charges of involuntary manslaughter and driving under the influence of alcohol stemming from a traffic fatality in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Bromwell pled guilty to the charges in May 2013 in the Superior Court of the District of Columbia. He was sentenced by the Honorable Lynn Leibovitz. In addition, Bromwell was ordered to pay $200 in court costs, and, upon his release from prison, he will be placed on three years of supervised release.
According to the government’s evidence, on March 21, 2013, at about 8:15 p.m., Bromwell was driving a sport utility vehicle at a high rate of speed, headed east in the 1100 block of Florida Avenue NE. The victim, Ruby L. Whitfield, 71, and two other individuals were walking across Florida Avenue at the intersection with 11th Street NE, in a marked crosswalk. Ms. Whitfield had just left church after an usher practice for the upcoming Palm Sunday.
Vehicular traffic at the intersection had stopped to give Ms. Whitfield and the other pedestrians the right of way. An eyewitness saw the SUV strike Ms. Whitfield without stopping, and she was lodged beneath the vehicle for about 86 feet.
The eyewitness followed the SUV as it drove from the scene and approached Bromwell while he was stopped at a red light a block away. The witness told Bromwell that he had just hit someone and that he should return to the scene. Instead, Bromwell drove off without making his identity known.
The Metropolitan Police Department (MPD) located the SUV and Bromwell a short time later. Bromwell failed field sobriety tests. He admitted that he was the driver of the SUV and that he had been drinking prior to the crash. Bromwell was arrested and, while at a police station, breath tests indicated that his blood alcohol content was above the legal limit for driving.
In announcing the sentence, U.S. Attorney Machen praised those who investigated the case for the Metropolitan Police Department, including members of the Major Crash Unit. He also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Sandra Lane, Fern Rhedrick and Phil Aronson, and Victim Witness Program Specialist Marcia Rinker.
Finally, he commended the work of Assistant U.S. Attorney Edward A. O’Connell, who prosecuted the matter.
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