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29 August 2013
Three Charged with Robbery of Chili’s Bar and GrillRead the Press Release
Men are Charged in Federal Court; Court Orders Them Held Without Bail
On August 21, 2013, a federal grand jury sitting in East St. Louis indicted three men for Interference with Commerce by Violence, a violation of the Hobbs Act, in connection with the robbery of Chili’s Bar and Grill in Fairview Heights on August 1, 2013, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois announced today. Following a hearing held this morning, each of the three defendants was ordered detained, that is, held without bail, pending trial, which is scheduled to occur in East St. Louis on October 7, 2013.
Christopher Jamaal Ford, 28, of St. Louis, Daniel W. Amerson, 26, of Cahokia, and Terry Lee Scott, 44, of Alorton, have been in custody since their arrests on August 1, 2013. If convicted of a violation of the Hobbs Act, the defendants each face a term in prison of up to 20 years, a fine of up to $250,000, or both, and a term of supervised release of up to 3 years.
An indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The case is being investigated by the Fairview Heights Police Department and is assigned to Assistant United States Attorney Suzanne M. Garrison for prosecution.
Three Charged with Illegal ReentryRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, announced that three individuals were charged with being in the United States illegally, in separate cases.
According to United States Attorney Peter J. Smith, a grand jury in Harrisburg return indictments Wednesday against: Alex Maldonado-Jimenez, age 32, a native and citizen of Honduras, Elias Mendez-Sierra, age 38, a native and citizen of Mexico, and Ivis Geraldo Raudales, age 20, a native and citizen of Mexico.
Maldonado-Jimenez was apprehended in Lebanon County, Mendez-Sierra in Adams County, and Raudales in York County.
The investigations were conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement and are being prosecuted by Special Assistant United States Attorney Brian McDonnell.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In these particular cases, the maximum penalty under the federal statute is 10 years’ imprisonment, a term of supervised release, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Ten Defendants Indicted in Alleged $74 Million Vehicle Financing Fraud Scheme Resulting in $56 Million in Losses to LendersRead the Press Release
CHICAGO — A former area motorcycle and recreational vehicle dealer and his accountant, together with eight other defendants who allegedly acted as straw buyers in sham vehicle sales, were indicted on federal charges alleging a nearly $74 million fraudulent financing scheme that resulted in approximately 20 lenders losing more than $56 million. All 10 defendants were charged with at least one count of bank fraud, and eight of them were also charged with federal tax offenses, in a 36-count indictment that was returned by a federal grand jury yesterday, federal law enforcement officials announced today.
The alleged bank fraud scheme involved two prongs: in one, the dealership fraudulently obtained more than $31.3 million in direct financing through five lines of credit from Fifth Third Bank, which lost more than $27.1 million; and, in the second, individual straw borrowers obtained some 200 fraudulent loans totaling nearly $42.4 million, which resulted in some 18 financial institutions losing more than $29.5 million. At least 62 of these individual loans were made to the eight defendants who allegedly acted as straw buyers.
The charges allege that all 10 defendants fraudulently obtained money for their personal use and benefit, enabling them to maintain lavish lifestyles, operate various businesses, and/or make investments. The money they obtained created the false appearance of personal wealth and helped induce the lenders to advance funds more readily due to their misplaced confidence that the defendants had sufficient personal wealth to repay the loans. The tax offenses against eight of the defendants include one or more counts each of tax evasion, failing to file an income tax return, or filing a false federal tax return.
Lead defendant RUSSELL S. OTT, 50, of Oswego, was the owner of Emily, Inc., which did business as Pro Source Motorsports, which was last located in Morris, Ill. Between 1995 and October 2008, Pro Source, the dealership at the center of the scheme, sold new and used motorcycles, luxury motor homes, recreational vehicles, all terrain vehicles, boats and jet skis. In 2007 and 2008, Ott also had ownership interests in Liberty Cycle in Libertyville, and Huntley Chevrolet in Libertyville. Ott was charged with one count each of bank fraud and tax evasion.
Defendant BRIAN McMAHON, 54, of Naperville, was Ott and Emily, Inc.’s certified public accountant, who also owned Triumph Suzuki in Naperville between 2001 and 2004 when he sold it to Ott. McMahon was charged with one count of bank fraud and two counts of filing false tax returns.
All 10 defendants will be ordered to appear for arraignment on dates to be determined in U.S. District Court.
Direct Lending Fraud
According to the indictment, Ott and McMahon fabricated false personal and business tax documents and financial statements and provided them to Fifth Third Bank, which between May 2007 and October 2008, extended Pro Source approximately $31,368,457 through five different credit lines, which funded traditional “floor plan loans.” As part of the scheme, Ott faxed false flooring requests with fictitious vehicle identification numbers for non-existent recreational vehicles, or real VINs for actual RVs but with dramatically inflated values. Ott sometimes “double floored” vehicles by obtaining separate financing from Fifth Third and a different lender for the same vehicle.
Straw Borrower Fraud
According to the indictment, Ott enlisted the other eight defendants as straw borrowers so they could obtain fraudulent loan proceeds to share with Ott even though they did not actually purchase the vehicles – usually very expensive RVs – for which the loans were made and the vehicles generally did not exist. The lenders who financed these loans generally deposited the funds into Emily, Inc.’s bank account, and then Ott periodically disbursed the proceeds to straw borrowers to operate and support their own businesses and lifestyles, make investments, and make monthly payments on some of the loans to perpetuate the scheme.
Ott allegedly made personal use of the fraudulently obtained funds to operate Pro Source, which operated at a loss from approximately 2001 through 2008; and to make the following purchases – a house in Elburn for approximately $679,491 and make subsequent improvements which increased the home’s cost to more than $1.1 million; a $258,000 vacation home in Butternut, Wis.; a $350,000 rental home in South Elgin; a Sky Hawk 172 Cessna airplane and hanger for approximately $200,000; and pick-up trucks and other vehicles for family members and employees of Pro Source. He also used the money to invest in and purchase other vehicle dealerships, including more than $3.6 million in Huntley Chevrolet, and more than $1 million in Liberty Cycle.
The other eight defendants, who allegedly acted as straw buyers, and details of their charges and alleged personal use of the funds are as follows:
ANDREW W. STACY, 51, of Elburn, a parts manager at Pro Source between 1998 and 2000. In late 2005, with financial assistant from Ott, Stacy acquired TUF Powersports, a motorcycle dealership in DeKalb, which he operated until it closed in late 2008. Stacy acted as a straw borrower on six fraudulent loans totaling more than $2.5 million, and after making certain periodic payments, used a portion of the funds to operate TUF Powersports and for personal expenses;
SCOTT F. DARVILLE, 48, of Racine, Wis., who owned and operated Pro Source of Woodstock, in 1998 and 1999. In 2000, DARVILLE became the owner of Racine MotorSports, Ltd., a motorcycle dealership he operated until it closed in 2009. Darville acted as a straw borrower on nine fraudulent loans totaling nearly $2.5 million, and after making certain periodic payments, retained more than $2 million, which he used to operate Racine Motorsports and for personal expenses;
F. PETER MIGNIN, 63, of Geneva, who owned and operated Northwest Investment Company, Inc., which formerly did business as Schaumburg Honda, a new and used motorcycle dealership. Mignin also owned RPM Management, LLC, doing business as Liberty Cycle, which he agreed to sell to Ott in 2007, and Mignin held an ownership interest with Ott in 2007 and 2008 in Huntley Chevrolet. Mignin acted as a straw borrower on 10 fraudulent loans totaling more than $3.8 million, and after making certain periodic payments, retained more than $3.4 million, which he used to operate Schaumburg Honda, Liberty Cycle, and for personal investments and expenses, including $450,000 toward the construction of his home, residence, and an $863,000 investment in Huntley Chevrolet;
KEVIN D. HANSON, 43, of Louisville, Ky., and formerly of Chicago, who owned and operated Safety First Racing, LLC, of Arlington Heights, a professional motorcycle racing team that competed at events throughout the United States between 2003 and 2008. Hanson acted as a straw borrower on seven fraudulent loans totaling more than $2.8 million, and after making certain periodic payments, retained more than $2.4 million, which he used to operate Safety First Racing, and for personal expenses;
OWEN A. WEICHEL, 48, of Huntington Beach, Calif., a former professional motorcycle racer who owned and operated Center of Gravity, LLC, which imported motorcycle parts from Japan and resold them in the United States. Weichel acted as a straw borrower on five fraudulent loans totaling more than $2.1 million, and after making certain periodic payments, retained more than $1.9 million, which he used to operate Center of Gravity and for personal expenses, including foreign investments in Costa Rica, Italy, and Canada of approximately $1,261,200;
JOHN MATERYN, 50, of Ypsilanti, Mich., who worked for Ott at Pro Source in 1998 and later at Liberty Cycle. Materyn acted as a straw borrower on seven fraudulent loans totaling more than $2.3 million, and after making certain periodic payments, he used a portion of the funds to operate Pro Source Motorsports in Michigan and for personal expenses;
JILL A. PLUTA, 55, of LaPorte, Ind., Ott’s former sister-in-law who was formerly known as Jill Ott, and who worked at Pro Source in 2005. She acted as a straw borrower on five fraudulent loans totaling nearly $1 million, and after making certain periodic payments, retained approximately $680,334, which she used for personal expenses; and
JOAN M. QUICK, 52, of Walworth, Wis., the office manager for Pro Source who was responsible for Pro Source’s day-to-day bookkeeping and accounting. Quick acted as a straw borrower on seven fraudulent loans, and she later wrote checks and directed electronic transfers from Emily, Inc. accounts totaling more than $1 million, which she used for personal expenses, including her residence, automobiles for at least three of her children and college tuition for at least two of them, and credit card payments totaling approximately $550,125.
The charges were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
The government is being represented by Assistant U.S. Attorney William Hogan.
Each count of bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine, or an alternative fine totaling twice the gross gain or twice the loss, whichever is greater, and restitution is mandatory. Tax evasion carries a maximum penalty of five years in prison and filing a false tax return carries a maximum of three years in prison, and both carry a maximum fine of $250,000, while failure to file a tax return carries a maximum of a year in prison and a $100,000 fine. In addition, defendants convicted of tax offenses face mandatory costs of prosecution and remain civilly liable to the government for any and all back taxes, as well as a potential civil fraud penalty of up to 75 percent of the underpayment plus interest. If convicted, the Court must determine a reasonable sentence to be imposed under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt against each defendant.
Indictment
Strongsville Company to Pay $330,000 for Fish-Kill Case; Money Will Be Used to Restock Rocky RiverRead the Press Release
A Strongsville company and the company owner’s wife were ordered to pay more than $330,000 for their roles in the dumping of a drum of liquid cyanide into a storm drain that flowed into the Rocky River, resulting in the death of more than 30,000 fish, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Kennedy Mint, Inc. was ordered to make a community service payment of $300,000 to the Cleveland Metroparks. In addition, the Court ordered Kennedy Mint to pay restitution in the amount of $30,893. The company previously pleaded guilty to violating of the Clean Water Act.
Teresina Montorsi, 74, was sentenced to one year of probation and ordered to pay a fine of $5,000. She previously pleaded guilty to obstruction of justice.
“Clean, fresh water is Ohio’s greatest natural resource,” Dettelbach said. “We are satisfied that we were able to determine who put the cyanide into the river and killed tens of thousands of fish. The restitution from this case will be used to restock the river with fish, so that people can again enjoy the natural beauty of the Rocky River.”
“America’s waterways must be protected from illegal dumping of industrial waste,” said Randall K. Ashe, Special Agent in Charge of U.S. EPA’s criminal enforcement program in Ohio. “The deliberate discharge of cyanide into a stream that runs through Rocky River Metropark is unconscionable, carrying severe consequences for wildlife and human health. Today’s sentencing shows that those who skirt environmental laws to save the costs of safe and legal disposal will be held accountable.”
“We are pleased that the river will be restocked with fish,” Ohio Attorney General Mike DeWine said. “This case demonstrates the devastating consequences that a single dumping can have on the environment. We will continue to work with our Task Force partners to investigate and prosecute violations of environmental protection laws and those who attempt to cover up such violations.”
Company owner Renato Montorsi was indicted last year, but those charges were dismissed after he was found to be incompetent to stand trial.
Renato and Teresina Montorsi are married and live in Grafton, Ohio, according to public records.
Kennedy Mint will pay restitution of $30,893 -- $1 for every fish killed by the illegal discharge. The money will be paid to the Ohio Department of Natural Resources and used to restock the river with steelhead trout under the terms of the plea agreement.Kennedy Mint will also pay $300,000 as part of community service. The $300,000 will be paid to the Cleveland Metroparks.
Renato Montorsi owned and operated Kennedy Mint, which is located in Strongsville. Kennedy Mint specializes in collectible coins, but previously conducted metal plating and printing operations. The East Branch of the Rocky River is near the Kennedy Mint facility and storm water from that location’s parking lot flows into the East Branch of the Rocky River, according to court documents.
On April 16, 2012, Montorsi, with assistance from an employee, put two drums into a dumpster outside Kennedy Mint. On April 17, the waste hauling company declined to dispose of the contents of the dumpster because of the two drums inside, according to court documents.
On April 18, Montorsi moved the drums from the dumpster and placed them next to the storm drain in the Kennedy Mint parking lot, according to court documents.
Later that day, Montorsi used a hammer and sharp metal tool to punch a hole near the bottom of a drum that included a poison label featuring a skull and cross bones. After punching the hole, liquid cyanide in the drum was discharged into the storm drain and eventually the East Branch of the Rocky River, according to court documents.
Around April 22, the Ohio Department of Natural Resources received reports of dead fish in the East Branch of the Rocky River. Nearly every fish was dead downstream for the next three miles, according to the court documents.
The Ohio DNR counted approximately 30,893 dead fish in that three-mile stretch of the river, due to the discharge of cyanide, according to court documents.
On April 25, personnel from the Ohio Environmental Protection Agency asked to enter the Kennedy Mint facility to look for the drums, which they did not locate. After they left, Renato Montorsi, with help from Teresina Montorsi, moved two drums from Kennedy Mint to their residence so they would not be discovered if investigators returned, according to court documents.
On June 22, Teresina Montorsi gave permission to U.S. EPA agents and Ohio EPA investigators to search their home without a warrant, at which point the agents found the punctured drum and another drum that contained cyanide, according to court documents.
This case is being prosecuted by Special Assistant U.S Attorney Brad J. Beeson following an investigation by the following agencies: United States Environmental Protection Agency, Criminal Investigation Division; Ohio Bureau of Criminal Identification and Investigation; the Northeast Ohio Regional Sewer District; the Ohio Environmental Protection Agency, Office of Special Investigations; the Ohio Department of Natural Resources, Division of Wildlife, and the Cleveland Metroparks Rangers, all members of the Northeast Ohio Environmental Crimes Task Force.
Statement of U.S. Attorney Jenny A. Durkan on Federal Marijuana Enforcement Policy AnnouncementRead the Press Release
Today, the U.S. Department of Justice announced an update to its federal marijuana enforcement policy in light of recent state ballot initiatives that legalize, under state law, the possession of small amounts of marijuana by adults and provide for the state regulation of marijuana production, processing and sale. The Department also issued a memorandum to all U.S. Attorneys that makes clear that the Department will continue to enforce the Controlled Substances Act and details the federal interests that guide federal enforcement relating to marijuana. Based on assurances that Washington and Colorado will impose an appropriately strict regulatory system, the Department has informed the governors of both states that it is deferring its right to challenge their legalization laws at this time.
The following is a statement from Jenny A. Durkan, U.S. Attorney for the Western District of Washington:
We have consistently focused on federal enforcement priorities in Western Washington, and have worked with our state and local partners to ensure the safety of our communities. That will not change. We will continue to enforce the Controlled Substances Act. We will continue an aggressive focus on the promotion and sale of drugs to minors, violence and the use of firearms, and the trafficking of marijuana across state or international lines. We will continue our work against organized criminal organizations and their underground economy, and against those who would use drug proceeds to fund other criminal activity.
The Department guidance is premised on the expectation that the state will implement strong and effective regulatory and enforcement systems. This also is what Washington voters were promised and we expect no less today. I look forward to meeting with state leaders to hear how the promises of enhanced public safety will be met.
The continued operation and proliferation of unregulated, for-profit entities outside of the state's regulatory and licensing scheme is not tenable and violates both state and federal law. While our resources are limited, we will continue to enforce federal law in this arena by focusing on the critical public and federal interests outlined in the Department memo today.This is an important moment for Washington, and I remain committed to working with law enforcement partners to focus on our priorities and address threats to public safety.
The Department’s announcement and a link to the guidance memorandum can be found here: http://www.justice.gov/opa/pr/2013/August/13-opa-974.html.
Members of the public are also advised that it remains against federal law to bring any amount of marijuana onto federal property, including all federal buildings, federal lands including national parks and forests, military installations, and courthouses. Individuals that do so will be subject to federal penalties.
Press contact for the U.S. Attorney’s Office is Executive Assistant United States Attorney Thomas Bates at (206) 553-7970 or [email protected].
Statement by U.S. Attorney John Walsh Regarding Marijuana Enforcement in ColoradoRead the Press Release
“The U.S. Attorney’s Office for the District of Colorado will continue to focus its marijuana enforcement efforts on the investigation and prosecution of cases that implicate the key federal public safety interests highlighted in the today’s Department of Justice guidance. The key federal interests set forth in that guidance are also key interests of the people of Colorado. Of particular concern to the U.S. Attorney’s Office are cases involving marijuana trafficking directly or indirectly to children and young people; trafficking that involves violence or other federal criminal activity; trafficking conducted or financed by street gangs and drug cartels; cultivation of marijuana on Colorado’s extensive state and federal public lands; and trafficking across state and international lines. In addition, because the Department of Justice’s guidance emphasizes the central importance of strong and effective state marijuana regulatory systems, the U.S. Attorney’s Office will continue to focus on whether Colorado’s system, when it is implemented, has the resources and tools necessary to protect those key federal public safety interests. To accomplish these goals, we look forward to closely working with our federal, state and local partners.”
John Walsh, United States Attorney, District of Colorado
Click here for the Memorandum by Deputy Attorney General James Cole regarding marijuana enforcement guidance: http://go.usa.gov/DCVV
Six Tucker County Residents Indicted on Methamphetamine ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Two others indicted by Elkins Grand Jury
ELKINS, WEST VIRGINIA — United States Attorney William J. Ihlenfeld, II, announced that a Federal Grand Jury sitting in Elkins returned a 39-count indictment charging six Tucker County residents with drug charges related to the manufacture of methamphetamine.
DESTRY SETH POLING, age 26, of Parsons, West Virginia; SHANNON DAVID FLAGG a/k/a “SHANE,” age 40, of Hambleton, West Virginia, SUSAN CHLOE RIDLEY, age
47, of Parsons, MISTY AUTUMN GRAFTON, age 25, of Hambleton, ERIC SCOTT PENNINGTON, age 29, of Parsons, and MICHAEL LUTHER WHITE, age 22, of Thomas, West Virginia, with “Conspiracy to Distribute Methamphetamine” from November of 2012 to June of 2013, in Tucker, Randolph, Upshur and Preston Counties.POLING faces a total of five counts; FLAGG faces a total of fourteen counts; RIDLEY and GRAFTON face a total of six counts; PENNINGTON faces a total of ten counts; and, WHITE faces two counts.
In addition to the conspiracy charge, other charges include the possession of material used in the manufacture of methamphetamine, possession of pseudoephedrine to be used in the manufacture of methamphetamine and attempted possession of pseudoephedrine to be used in the manufacture of methamphetamine.
Each defendant faces penalties of up to 20 years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
This case will be prosecuted by Assistant United States Attorney Stephen D. Warner and was investigated by agents and officers of the Monongahela National Forest Law Enforcement and Investigations Division.
In addition, the following indictments were also returned by the grand jury this week: CHAD FREDERICK ARBOGAST, age 34, of Belington, West Virginia, was named in a seven-count Indictment charging him with “Distribution and Possession with Intent to
Distribute Oxycodone and Heroin.” If convicted, ARBOGAST faces up to 20 years imprisonment on each count. This case will be prosecuted by Warner and was investigated by the West Virginia State Police-Bureau of Criminal Investigations.MICHAEL J. WHITE, age 45, of Clarksburg, West Virginia, was named in a four- count Indictment charging him with one count of “Stealing Public Money” and three counts of “False Statement.” If convicted, WHITE faces up to ten years imprisonment on the public money charge and up to five years imprisonment on each of the false statement charges. This case will be prosecuted by Assistant United States Attorney Robert H. McWilliams, Jr. and was investigated by the Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division.
It should be noted that the charges contained in the Indictment are merely accusations and not evidence of guilt, and that each defendant is presumed innocent until and unless proven guilty.
Shoe Store Chain Owner Sentenced for Tax Fraud ConspiracyRead the Press Release
Augst 29, 2013PHILADELPHIA - Uri Jacobson, 42, of Philadelphia, was sentenced today to 30 months in prison for a tax fraud conspiracy that involved paying employees under the table and filing false tax returns. Jacobson, the co-owner of 12 shoe and discount stores doing business as Bare Feet Shoes, employed more than 200 people in Pennsylvania and New Jersey including Elena Falaschetti, 53, also of Philadelphia, who was a store manager and was indicted with Jacobson. Falaschetti was sentenced on May 20, 2013 to six months of home confinement. U.S. District Court Judge Lawrence F. Stengel also ordered Jacobson to pay restitution to the IRS in the amount of $1,263,000 and ordered one year of supervised release.
Between 2003 and 2009, Jacobson decided to pay some of his employees, in whole or in part, “under the table,” that is, without federal income taxes and federal Social Security and Medicare taxes being withdrawn from their wages and paid to the IRS. Jacobson caused his office employees, including Falaschetti, to falsely report salary, hours, and/or wages per hour for certain employees to the company’s payroll service. Jacobson’s own corporate records show that between 2004 and approximately September 2009, Bare Feet Shoes paid out a total of approximately $2,787,640 in gross wages which were not reported to the IRS and from which federal income taxes and Social Security and Medicare taxes were not withheld and paid to the IRS. Jacobson’s failure to withhold and pay over his employees full federal taxes, and his failure to pay his employer’s matching share of the Social Security and Medicare taxes, caused a tax loss of approximately $596,628.
Jacobson, who pleaded guilty on September 5, 2012, filed false tax returns for 2004, 2006, 2007, and 2008 and failed to file a personal income tax return for 2005, under-reporting his income by approximately $700,000. Falaschetti, who also pleaded guilty on September 5, 2012, filed false personal income tax returns for tax years 2006 through 2009, under-reporting her income by approximately $121,000.
The case was investigated by the Internal Revenue Service Criminal Investigations and was prosecuted by Assistant United States Attorney Paul Gray.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Sentences for August 26 – 27, 2013Read the Press Release
Robert Arthur Reed, aka Ben Stauffer, aka Ben Staupher, aka Ben Stopher, aka Eric Roth, aka Walt Anderson, 58, of Morgan, Utah, was sentenced by Federal District Court Judge Scott W. Skavdahl on August 27, 2013, for conspiracy to commit mail and wire fraud and conspiracy to launder money. Reed was arrested in Morgan, Utah. He received 151 months imprisonment, to be followed by three years of supervised release and was ordered to pay a $200.00 special assessment and restitution in the amount of $4,425,034.63. The Court also ordered forfeiture in the amount of $4,425,034.63. This case was investigated by the Wyoming Secretary of State’s Office, The Federal Bureau of Investigation, the United States Postal Inspection Service and the Secret Service.
Gregory Lee Doss, dba Greenbelt Asset Management LLC or 2BGreen Consulting LLC, 58, of Sherman Oaks, California, was sentenced by Federal District Court Judge Scott W. Skavdahl on August 26, 2013, for conspiracy to commit mail and wire fraud and conspiracy to launder money. Doss was arrested in Los Angeles, California. He received 72 months imprisonment, to be followed by three years of supervised release and was ordered to pay a $200.00 special assessment and restitution in the amount of $4,425,034.63. The Court also ordered forfeiture in the amount of $2,253,462.50. This case was investigated by the Wyoming Secretary of State’s Office, The Federal Bureau of Investigation, the United States Postal Inspection Service and the Secret Service.
Jonathan Louis Salazar, 43, of East Helena, Montana, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on August 26, 2013, for conspiracy to possess with intent to distribute, and to distributing 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Salazar was arrested in Helena, Montana. He received 60 months imprisonment, to be followed by four years of supervised release and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Javier Martinez-Enrique, 35, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on August 26, 2013, for illegal re-entry of a previously deported alien into the United States. Martinez-Enrique was arrested in Jackson, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Felipe Balmaceda-Fierro, 40, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on August 26, 2013, for illegal re-entry of a previously deported alien into the United States. Balmaceda-Fierro was arrested in Worland, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Refugio Hernandez-Renteria, 39, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on August 26, 2013, for illegal re-entry of a previously deported alien into the United States. Hernandez-Renteria was arrested in Gillette, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Santa Ana Pueblo Woman Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Jayleen Armijo, 30, a member and resident of Santa Ana Pueblo, pleaded guilty this morning to a federal assault charge. Armijo entered her guilty plea without the benefit of a plea agreement.
Armijo and co-defendant Benjamin Menchego, 32, also a member and resident of Santa Ana Pueblo, were indicted in Feb. 2013, and charged with assault resulting in serious bodily injury. According to the indictment, Armijo and Menchego assaulted a woman on Dec. 20, 2012, in a location within the Santa Ana Pueblo. According to court filings, the victim sustained a broken orbital socket, a broken nose and over a dozen bite wounds which left permanent scars as a result of the assault.
During today’s proceedings, Armijo entered a guilty plea to the indictment and admitted assaulting the victim on Dec. 20, 2013. In entering her guilty plea, Armijo admitted biting the victim, aiding Menchego in assaulting the victim, and leaving the victim with serious injuries. Armijo was remanded into the custody of the U.S. Marshals Service after entering her guilty plea and will be detained pending her sentencing hearing, which has yet to be scheduled. At sentencing, Armijo faces a maximum penalty of ten years in federal prison.
Menchego has entered a not guilty plea and is presumed innocent unless found guilty beyond a reasonable doubt in a court of law. He is scheduled for a change of plea hearing tomorrow.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Santa Ana Police Department, and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
San Diego Federal Jury Finds Michigan Man Guilty of Interstate StalkingRead the Press Release
United States Attorney Laura E. Duffy announced that, on Tuesday, August 26, 2012, a jury returned guilty verdicts on all counts in an indictment charging Brian Curtis Hile, a resident of Michigan, with Interstate Stalking, in violation of Title 18, United States Code, Section 2261A(1).
According to evidence presented at trial and the investigation by the Federal Bureau of Investigation and the Computer and Technology Crime Hi-Tech Response Team, Hile travelled to San Diego from Michigan in August 2011, with the intent to kill a female victim and her boyfriend. Prior to travelling from Michigan to San Diego, Hile engaged in an online relationship, which spanned a couple of years. During the course of that online relationship, Hile exchanged romantic communications and explicit photographs with someone he believed to be a woman. However, when Hile learned that his online paramour was in fact a man residing in South Africa, and that his romance was nothing more than a “Cat fishing” scheme, Hile became enraged and initiated what he termed “an investigation” to find the woman in the photographs used in the scheme.
Trial evidence revealed that as part of his investigation, Hile conducted an extensive search of the Internet, utilizing chat rooms and online gaming blogs to identify and locate the woman in the photographs, a resident of San Diego County, who years earlier had her online “Photo Bucket” account comprised resulting in her photographs being disseminated over the Internet.
The evidence presented at trial showed that after a diligent search, Hile not only identified the woman in the photograph, but obtained personal information for her as well as her boyfriend, the victim’s family members and friends. Hile was arrested in San Diego within miles of the victim’s home. At the time of his arrest, Hile was in possession of the victim’s address, telephone numbers, email addresses, telephone contacts, contact information for the victim’s favorite restaurant and the names and addresses for educational institutions that the victim had previously attended. Forensic evidence presented at trial showed that Hile retrieved the victim’s confidential information by hacking into the victim’s email account. Hile was also found in possession of duct tape, zip ties, and a to-do list that included additional supplies he needed to obtain to complete his plan to kill the female victim and her boyfriend, including a trench coat, knife, and chloroform.
United States Attorney Duffy noted, “This prosecution demonstrates the potential for stalkers to use information from the Internet to prey on their victims, and reaffirms the Department’s commitment to ensure the safety of all of the people in our community.” U.S. Attorney Duffy also praised the efforts of the Federal Bureau of Investigation and the Computer and Technology Crime Hi-Tech Response Team. The Computer and Technology Crime High-Tech Response Team (CATCH) is a multi-agency task force formed in June 2000 to apprehend and prosecute all criminals who use technology to prey on the citizens of San Diego and Imperial and Riverside Counties.
Hile is next scheduled to appear in court at his sentencing hearing on November 22, 2013 at 9:00 a.m., before the Honorable Janis L. Sammartino, United States District Court Judge.
DEFENDANT Case Number: 12CR1687JLS Brian Curtis Hile SUMMARY OF CHARGESCounts: 2: Title 18, United States Code, Section 2261A(1) -Interstate Stalking
INVESTIGATING AGENCIESFederal Bureau of Investigation
Computer and Technology Crime Hi-Tech Response TeamRosebud Man Charged with Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury.
Anthony Hero, age 28, was indicted by a federal grand jury on May 15, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 27, 2013, and pled not guilty to the Indictment.
The charge stems from an incident wherein Hero allegedly assaulted an individual in February of 2013. As a result of the alleged assault, the individual sustained a broken jaw requiring surgery.
The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release; an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Hero is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribal Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Hero was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.Richmond Man Pleads Guilty to Theft of Generators from American Military Base in Baghdad, IraqRead the Press Release
RICHMOND, Va. – Reuben Thomas, 34, of Richmond, Virginia, pleaded guilty today to stealing 2 electrical generators from the American Victory Base Complex in Baghdad, Iraq on June 17, 2009.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office of the Federal Bureau of Investigation, made the announcement after the guilty plea before Magistrate Judge M. Hannah Lauck.
At the sentencing before the Honorable Robert E. Payne on November 21, 2013, Thomas is facing a maximum sentence of 10 years in prison and a fine of $250,000.
Thomas was a civilian employed as a Site Lead Property Book Manager by Honeywell Technologies Solutions, Inc., an American company that had a military contract and subcontract with the Department of Defense (DOD) to assist in its mission at the Camp Victory Base Complex (VBC) in Bagdad, in the Republic of Iraq (Iraq).
According to documents filed with the court, a shortage of reliable electricity was a problem in Iraq during the period of occupation by coalition forces following the 2003 invasion. To fulfill its mission, DOD had many contracts to create and import into Iraq a wide variety of electrical generators. Forces opposing the United States also had the same electrical problems. This demand helped form an active black market for these electrical generators.
One such generator purchased by the DOD was a 1.1 Megawatt, approximately 20,000 pound, diesel generator manufactured by F. G. Wilson, Model Number P1250P3/P1375E3. These generators were typically used as prime power in Iraq, meaning that they supplied continuous electrical power in places where there was no commercial power available. The price per generator was $176,055.00.
As part of the investigation into the June 17, 2009, theft of the two generators, it was determined that a rough terrain container handler (hereafter referred to as “retch”) was used to lift the generators from the sandy storage yard on to two flatbed trucks.
In the Statement of Facts, Thomas admitted that he participated in obtaining permission to borrow the retch and the escorting of the retch to the generator storage yard on the west side of the VBC. At the storage yard, the retch was used to steal the generators by loading them on to two flatbed trucks which transported the generators off the VBC. Thomas then escorted the retch back to the military facility on the east side of the VBC.
This case was the product of an investigation by the FBI and the Criminal Investigation Division of the United States Army. Assistant United States Attorney David T. Maguire and Department of Justice Trial Attorney J. P. Cooney are 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.Registered Sex Offender Arrested on Federal ChargesRead the Press Release
PENSACOLA, FLORIDA – Clay C. Keys, 52, of Pensacola, was arrested late yesterday afternoon on federal charges regarding the distribution of child pornography, the possession of child pornography and the possession of ammunition by a convicted felon. The arrest was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida, and results from an investigation conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Pensacola Police Department.
Mr. Keys, who is a registered sexual offender in the state of Florida, made his initial appearance in federal court this morning. He will be detained pending his next court appearance, now scheduled for September 3, 2013.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case is being prosecuted by Assistant U.S. Attorney David L. Goldberg of the Northern District of Florida.
Keys was taken into custody pursuant to an arrest warrant issued by United States Magistrate Judge Charles J. Kahn, Jr. An arrest warrant is merely a finding of probable cause by the Court that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial in a court of law.Red Lake Man Sentenced for Assaulting A WomanRead the Press Release
MINNEAPOLIS—Yesterday in federal court in Duluth, a 44-year-old Red Lake man was sentenced for causing serious bodily injury to a woman after assaulting her while on the Red Lake Indian Reservation. On August 28, 2013, United States District Judge Richard H. Kyle sentenced Roderick Arlyn Sayers to 43 months in prison on one count of assault resulting in serious bodily injury. Sayers was indicted on November 5, 2012, and convicted on April 16, 2013.
The evidence presented at trial proved that on November 25, 2011, Sayers assaulted the woman, which resulted in serious bodily injury.
This case was the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorneys Deidre Y. Aanstad and Thomas Calhoun-Lopez.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.
The U.S. Justice Department is taking steps to increase engagement, coordination and action relative to public safety in tribal communities, including the creation of the Violence Against Women Federal and Tribal Prosecution Task Force. This task force will explore current issues raised by professionals in the field and recommend “best practices” in prosecution strategies involving domestic violence, sexual assault and stalking.
Violence against American Indian women occurs at epidemic rates. In 2005, Congress found that one in three American Indian women is raped during her lifetime, and American Indian women are nearly three times more likely to be battered in during their lives than Caucasian women.Philadelphia Pair Charged in Drug CaseRead the Press Release
Antonio Smith-Valera, a/k/a “Antonio Smith,” 56, and Moise Calzadilla, a/k/a “Cuba,” 39, both of Philadelphia, Pennsylvania was charged by Indictment today with conspiracy to distribute cocaine, distribution of cocaine, and attempted distribution of cocaine, announced United States Attorney Zane David Memeger. Smith-Valera was additionally charged with possession with intent to distribute crack, cocaine, and heroin; possession of firearm in furtherance of drug trafficking crime; and possession of firearm by convicted felon.
If convicted, Smith-Valera faces a maximum of life imprisonment, a mandatory minimum of 15 years imprisonment, a minimum of eight years of supervised release up to a lifetime of supervised release, a $21,500,000 fine, a $600 special assessment, and forfeiture. If convicted, Calzadilla faces a maximum of 80 years imprisonment, a mandatory minimum of 5 years imprisonment, a minimum of four years of supervised release up to a lifetime of supervised release, a $6,000,000 fine, a $300 special assessment, and forfeiture.
The case was investigated by the Drug Enforcement Administration and the Montgomery County Narcotics Enforcement Team. It is being prosecuted by Assistant United States Attorney Ewald Zittlau.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Ohio Man Pleads Guilty to Violating Clean Water Act by Discharing Waste into Mahoning RiverRead the Press Release
An Ohio man pleaded guilty today to one count of violating the Clean Water Act, said Steven M. Dettelbach, the United States Attorney for the Northern District of Ohio.
Michael L. Guesman, 34, of Cortland, Ohio, admitted to illegally discharging brine and oil-based drilling mud into a stormwater drain on numerous occasions. The drain flowed into an unnamed tributary of the Mahoning River and ultimately into the Mahoning River, according to court documents.
“Clean, fresh water is our greatest resource in Northern Ohio,” Dettelbach said. “We will aggressively investigate and prosecute cases in which people pollute Ohio’s streams, rivers and lakes.”
“Opening a valve and dumping brine and oil-based drilling mud into a river is inexcusable,” Ohio Attorney General Mike DeWine said. “We each have a role in keeping the state’s waters safe for all Ohioans and actions like this will not be tolerated.”
“The defendant admits that he dumped toxic, oil-based drilling mud into the Ohio River watershed. It saved time and money, but it also seriously threatened environment, wildlife and human health” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “Today’s plea should help protect the Mahoning and other rivers by deterring those who would turn America’s waterways into chemical dumping grounds.”
According to documents filed with the court related to the case:
Guesman was an employee of Hardrock Excavating LLC. The Hardrock facility was located in Youngstown, Ohio. The facility is within one mile of the Mahoning River.
Hardrock provided services to the oil and gas industry in Ohio and Pennsylvania, including the storage, treatment, and disposal of waste liquids generated from oil and gas well drilling operations. Prior to treatment or disposal these liquids were stored in tanks located at the facility. Each tank has an approximate capacity of 20,000 gallons.
Some of the waste liquids accepted by Hardrock included brine, flowback, and oil-based drilling mud. Brine is water with a high quantity of salt dissolved in it, flowback is the liquid left over as part of hydrofracturing ("fracking"), and oil-based drilling mud is a semi-solid slurry that contains petroleum products.
Starting on or about December 12, 2012, at the direction of the owner of Hardrock, Benedict W. Lupo, Guesman emptied some of the waste liquid being stored at the facility into a nearby stormwater drain. Lupo further directed that Guesman conduct this activity only after no one else was at the facility and after dark.
Over the next two months, on numerous occasions, at the direction of Lupo, Guesman emptied some of the waste liquid being stored at the facility into the nearby stormwater drain using a hose.
On or about January 31, 2013, was the last time Guesman emptied some of the waste liquid being stored at the facility into the nearby stormwater drain. The waste liquid emptied that night included a mixture of brine and oil-based drilling mud, according to court documents.
In total, Guesman emptied tanks at the direction of Mr. Lupo on approximately 24 different nights.
A sample of the discharge on the night of January 31, 2013, was obtained and analyzed. Analysis of the sample, which was black in color, showed the presence of several hazardous pollutants, including benzene and toluene.The stormwater drain, into which the waste liquids had been discharged, flowed into an unnamed tributary of the Mahoning River, which is a waterway of the United States.
Federal charges against Lupo and Hardrock remain pending. Both were indicted earlier this year on one count of violating the Clean Water Act.
Guesman is scheduled to be sentenced on November 15, 2013.
The statutory maximum for violating the Clean Water Act is for individuals is three years in prison, one year of supervised release and a fine of $50,000 per day of violation or $250,000, whichever is larger. For corporations, the statutory maximum is five years of probation and a fine of $50,000 per day of violation or $500,000, whichever is larger.
This case is being prosecuted by Special Assistant U.S. Attorney Brad Beeson following an investigation by the Ohio EPA, Ohio Department of Natural Resources, U.S. EPA, the Ohio Bureau of Criminal Investigation, the Youngstown Department of Public Works and the Youngstown Fire Department.
Odebolt Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pled guilty August 28, 2013, in federal court in Sioux City.
Kevin Schimerowski, 46, from Odebolt, was convicted of conspiring to distribute methamphetamine.
At the plea hearing, Schimerowski admitted his involvement in a conspiracy from about 2012 through April 2013 that distributed more than five grams of actual (pure) methamphetamine. On three occasions in February 2013, Schimerowski distributed over five grams actual (pure) methamphetamine to individuals cooperating with law enforcement.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Schimerowski remains in custody of the United States Marshal pending sentencing. Schimerowski faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $8,000,000 fine, a special assessment of $100, and at least eight years up to life of supervised release following any imprisonment.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Shelby County Sheriff’s Office, Denison Police Department, Harrison County Sheriff’s Office, Sac County Sheriff’s Office, and the Iowa Division of Criminalistics Laboratory.Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-4038.
North Miami Man Charged in Unemployment Benefits SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Richard Walker, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and Jesse Panuccio, Executive Director, State of Florida Department of Economic Opportunity, announce the return of a 21-count indictment charging Guy Robert Nalien, 26, of North Miami, Florida, with wire fraud, mail fraud and aggravated identity theft in unemployment benefits scheme.
According to the indictment, Nalien utilized the personal identification of others to falsely represent to the Florida Department of Economic Opportunity Unemployment Compensation Program that such individuals were unemployed and eligible to obtain Florida unemployment compensation benefits. The indictment further alleges that Nalien received the fraudulently obtained benefits for his own personal use.
If convicted, Nalien faces a statutory maximum penalty of 20 years in prison for each count of mail fraud and wire fraud, followed by three years of supervised release, a fine of up to $250,000 and restitution, and a consecutive two years in prison for each count of aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations and the State of Florida Department of Economic Opportunity. The case is being prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.
An indictment is only an accusation, and defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Nine Year Prison Sentence for Illegal Gun RunnerRead the Press Release
PHILADELPHIA – Luis Ramos, 35, of Philadelphia, was sentenced yesterday to 108 months in prison for his role in an illegal gun trafficking operation. Ramos was charged with six other defendants who were using Ramos’ house, in the 2000 block of East Atlantic Street in Philadelphia, as a center for illegal gun sales. Between February 2011 and August 2012, on multiple occasions, one or more of the co-conspirators agreed to sell a buyer a gun and, when the buyer pulled up in front of Ramos’ house, or other locations, delivered the gun to the buyer’s car window. In addition to Ramos’ house, the defendants were using a storage facility, in the 3500 block of North B Street, and a clothing store, in the 3900 block of Kensington Avenue, for purposes of conducting their illegal gun sales. The operation was brought to a halt by an undercover investigation involving the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Ramos pleaded guilty to conspiracy, gun trafficking, unlawfully making a weapon from a shotgun, two counts of unlawfully transferring a firearm, unlawful possession of a short-barreled shotgun, and 21 counts of being a felon in possession of a firearm. Ramos’ co-defendants Ruben Ramos, Dalvi Rodriguez, and Jim Cruz are awaiting sentencing; Co-defendants Daniel Ruiz, Hector Ortiz, Eddy Delacruz, and Miguel Massa are awaiting trial. In all, their operation sold 43 guns illegally, plus ammunition.
Ramos and his co-defendants were arrested with several other defendants charged in separate indictments as a result of the ATF investigation which also resulted in the seizure of more than five dozen guns and hundreds of rounds of ammunition.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is being prosecuted by Assistant United States Attorney Joseph Labar.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525New York Man Charged in Manhattan Federal Court for Illegal Possession of WeaponsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Joseph Anarumo, Jr., Special-Agent-in-Charge of the New York Division of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and Eric Timberman, the Acting United States Marshal for the Southern District of New York (“USMS”), announced today the filing of federal criminal charges against ANTONIO OLMEDA. OLMEDA, who was arrested by the New York City Police Department in December of 2011 in connection with his alleged attempt to shoot two police officers, faces federal charges for being a convicted felon in possession of various firearms, and for possessing unregistered machine guns and an unregistered short-barreled shotgun. OLMEDA, who remains in state custody, was charged in a six-count indictment on August 14, 2013, and was presented yesterday in Manhattan federal court before U.S. Magistrate Judge James C. Francis IV.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Antonio Olmeda, a convicted felon, possessed a veritable arsenal including multiple machine guns and a sawed-off shotgun. Olmeda, who has been separately charged in the state for shooting at police officers, was prohibited from having any firearms much less the kind of firepower alleged in the indictment at his disposal. This Office will continue to work with our partners to remove firearms from the hands of convicted criminals as the law and public safety demand.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, Antonio Olmeda illegally amassed an arsenal of weapons, to include semi-automatic handguns, machine guns and a shotgun. Gone undetected, these weapons, in the hands of a convicted felon, posed a danger not only to law enforcement, but to the unsuspecting public, who may have come in contact with Olmeda. His arrest demonstrates the ongoing commitment by the FBI and our law enforcement partners to keep the public safe by removing firearms from individuals who are not authorized to use or possess them.”
ATF Special Agent-in-Charge Joseph Anarumo, Jr. said: “The unlawful possession of firearms by a convicted felon is a federal violation that ATF takes very seriously as it threatens the safety of our city. ATF has had a long and productive relationship with our local, state and federal law enforcement partners in combating violent crime. Consequently, and as a united front, the arrest of these types of alleged violent offenders is now much more commonplace, making the collective goal of a safer community an attainable reality.”
Acting United States Marshal Eric Timberman said: “The Olmeda case is a shining example of the U.S. Marshals Service working closely with all agencies, federal, state, and local, to ensure the safety of our community and the administration of justice. These law enforcement partners will continue to work closely together in an effort to continue to take criminals and illegal weapons off our streets.”
According to the allegations in the Indictment filed in Manhattan federal court, OLMEDA, a convicted felon, possessed the following firearms, all of which have been seized by the Government:
- Springfield Armory Ultra Compact .45-caliber semi-automatic handgun
- Taurus 85 Ultralite .38-caliber revolver
- Olympic Arms PCR03 .223-caliber fully-automatic rifle
- Smith & Wesson .40-caliber semi-automatic pistol
- Beretta 92SB Compact 9-mm Luger semi-automatic pistol
- Cobray Industries M-11 9-mm Luger fully-automatic pistol
- Remington model Mohawk 600 .308-caliber rifle
- Roggio Arsenal model RA-15 rifle receiver/frame
- Interarms rifle
- Springfield Armory model 1911A1 .45-caliber pistol
- Springfield Armory model 1911A1 .45-caliber pistol
- Springfield Armory model 1911A1 .45-caliber pistol
- Sig Sauer model SP 2022 9mm-caliber pistol
- Taurus model PT140 Millenium .40-caliber pistol
- Smith & Wesson model 4006 .40-caliber pistol
- Star Bonifacio Echeverria model Firestar 9mm-caliber pistol
- Charter Arms model Police Undercover .32-caliber revolver
- Walther model PPK/S .380-caliber pistol
- Vulcan Arms model V15 7.62x39mm-caliber machinegun
- Norinco AK-type 7.62x39mm-caliber machinegun
- Mossberg model 500A 12-gauge shotgun
OLMEDA, 55, of New York, New York, is charged with three counts of possession of firearms by a convicted felon, two counts of possession of unregistered machine guns, and one count of possession of an unregistered short-barreled shotgun. Each count carries a maximum sentence of 10 years in prison. OLMEDA faces a maximum sentence of 60 years in prison.
In addition, OLMEDA is separately charged by the state with two counts of attempted murder in the first degree, two counts of attempted assault on a police officer with a deadly weapon, one count of criminal possession of a weapon in the second degree, and two counts of attempted assault in the first degree, all arising from his alleged attempt to shoot two police officers in Queens, New York on December 2, 2011.
The charges and arrest of OLMEDA are the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York, the Joint Terrorism Task Force – which principally consists of agents and detectives of the FBI and the New York City Police Department (“NYPD”) – the ATF, and the USMS. Mr. Bharara also thanked the NYPD and the Yonkers Police Department for their ongoing assistance.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The case is being handled jointly by the Office’s Violent Crimes Unit and Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Michael D. Maimin and John P. Cronan are in charge of the prosecution.
U.S. v. Antonio Olmeda Indictment
New Haven Man Sentenced to More Than Seven Years in Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MARK FULLER, 50, of New Haven, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 90 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.
FULLER 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 FULLER conspired with others to purchase and redistribute crack cocaine.
On January 28, 2013, FULLER pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of cocaine base (“crack”).
FULLER’s criminal history includes multiple felony convictions, including four felony drug convictions.
FULLER has been detained in federal custody since his arrest on May 17, 2012.
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.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]New Haven Man Guilty of Federal Firearm OffenseRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that a federal jury in New Haven has found TYRON HAMMOND, 31, of New Haven, guilty of possession of ammunition by a previously convicted felon. The trial before U.S. District Judge Janet C. Hall began on August 26 and the jury returned the verdict yesterday afternoon.
According to the trial evidence, on December 11, 2012, the U.S. Marshals Service Violent Fugitive Task Force, executing a state arrest warrant, arrested HAMMOND at an apartment on Chambers Street in New Haven. A subsequent court-authorized search of the apartment revealed a fully-loaded .22 caliber revolver with one expended casing.
The Connecticut Department of Emergency Services and Public Protection’s Forensic Science Laboratory determined that HAMMOND’s DNA was on both the firearm and the ammunition.
Although the revolver was manufactured in Connecticut and could not be traced due to its age, the ammunition in the firearm was manufactured in Idaho.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
HAMMOND’s criminal history includes a 2004 federal conviction for possession of a firearm by a previously convicted felon. That conviction stemmed from an incident in November 2003 when HAMMOND shot and injured an individual with a .44 caliber revolver in the Farnam Court housing complex in New Haven. HAMMOND was also convicted in state court of first degree assault in relation to the shooting.
In December 2004, HAMMOND was sentenced in U.S. District Court to 10 years of imprisonment. He was released from federal prison in July 2012.
Judge Hall has scheduled sentencing for November 21, 2013, at which time HAMMOND faces a maximum term of imprisonment of 10 years. HAMMOND also faces up to two years of imprisonment for violating the terms and conditions of his supervised release from his prior federal conviction.
This matter was investigated Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service Violent Fugitive Task Force and the New Haven Police Department. This case is being prosecuted by Assistant United States Attorney Anthony E. Kaplan, with the assistance of law student intern Allison Gorsuch.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Nampa Man Arrested on Federal Drug ChargeRead the Press Release
BOISE – Timothy Alan Butterbaugh, 45, of Nampa, Idaho, was arrested yesterday on a federal complaint charging him with distributing methamphetamine, U.S. Attorney Wendy J. Olson announced.
The complaint, filed in United States District Court on Wednesday, charges Butterbaugh with distributing methamphetamine on July 24, 2013. Butterbaugh was arrested last night at his residence in Nampa. Federal agents and local officers executed a search warrant at his residence along with two other locations in Nampa. The warrants were served by the FBI, Treasure Valley Metro Violent Crime Task Force, Canyon County Sheriff's Office, Nampa City Police Department, and Meridian City Police Department.
If convicted, Butterbaugh faces a maximum penalty of twenty years in prison, a maximum fine of $1,000,000, and at least three years of supervised release.
An initial appearance is set for August 30, 2013, at the federal courthouse in Boise. A preliminary hearing will be scheduled at that time.
The case is being investigated by the Treasure Valley Metro Violent Crimes Task Force, which is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and the Idaho Department of Correction.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
A complaint is only an allegation of criminal conduct and is not evidence of guilt. A person is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Mexican National Sentenced in East Texas Meth ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsMARSHALL, Texas – A 29-year-old Sinaloa, Mexico man currently residing in Marshall, Texas, has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Joeli Higuera Fernandez pleaded guilty on May 3, 2013, to conspiracy to possess with intent to distribute and distribution of methamphetamine and was sentenced to 70 months in federal prison on Aug. 28, 2013, by U.S. District Judge Rodney Gilstrap. Fernandez was also ordered to submit to forfeiture of $15,000 in currency.
According to information presented in court, from March 2010 to October 2012, Fernandez was involved in a conspiracy to possess and distribute methamphetamine in the Eastern District of Texas. Fernandez admitted to distributing 101.7 grams of actual methamphetamine during this time. A federal grand jury returned an indictment on Nov. 7, 2012, charging Fernandez and three others with drug trafficking violations.
This case was investigated by the Federal Bureau of Investigation, the Marshall Police Department and the Harrison County District Attorney’s Office and prosecuted by Assistant U.S. Attorney Allen Hurst.
Mexican National Pleads Guilty to Trafficking Methamphetamine in San Juan CountyRead the Press Release
ALBUQUERQUE – Pricilio Garcia-Jimenez, 40, a Mexican national who resided in Farmington, N.M., entered a guilty plea late yesterday afternoon to methamphetamine trafficking charges. Under the terms of his plea agreement, Garcia-Jimenez will be sentenced to 108 months in federal prison. Garcia-Jimenez, who was in the United States without authorization at the time of his arrest, will be deported after he completes his prison sentence.
Garcia-Jimenez was arrested on May 22, 2012, on a criminal complaint alleging that he sold methamphetamine to an undercover officer in April 2012, in San Juan County, N.M. Garcia-Jimenez has been in custody since that time. In July 2012, Garcia-Jimenez was indicted and charged with distributing methamphetamine in San Juan County on five separate occasions between Nov. 2011 and April 2012.
During this afternoon’s plea hearing, Garcia-Jimenez pleaded guilty to four of the five counts in the indictment and an information charging him with distribution of methamphetamine, and admitted distributing methamphetamine for profit in San Juan County, N.M. In his plea agreement, Garcia-Jimenez admitted distributing methamphetamine to an undercover officer on five separate occasions between Nov. 2011 and April 2012. He further admitted distributing methamphetamine to others on four occasions between Sept. 2011 and Nov. 2011.
Garcia-Jimenez remains in federal custody pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of Homeland Security Investigations (HSI) and the HIDTA Region II Narcotics Task Force and is being prosecuted by Assistant U.S. Attorney Nicholas J. Ganjei.
The Region II HIDTA Narcotics Task Force is comprised of officers from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department. It is part of the High Intensity Drug Trafficking Areas (HIDTA) program which was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Mexican Couple Sentenced for Harrison County Drug TraffickingRead the Press Release
Department of Justice
Office of Public AffairsMARSHALL, Texas – A couple from Mexico currently residing in Marshall, Texas, have been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Julia Flores Saucedo, 33, of Guerrero, Mexico, pleaded guilty on Jan. 20, 2013, to possession with intent to distribute and distribution of methamphetamine and was sentenced to 46 months in federal prison on Aug. 28, 2013, by U.S. District Judge Rodney Gilstrap.
Her common-law husband, Oscar Diaz-Mendoza, 35, of Guerrero, Mexico, pleaded guilty on Feb. 28, 2013, to possession with intent to distribute and distribution of methamphetamine and was sentenced to 46 months in federal prison on Aug. 28, 2013, Judge Gilstrap.
According to information presented in court, from July 2011 to October 2012, the couple was involved in a conspiracy to possess and distribute methamphetamine in the Eastern District of Texas. Saucedo admitted to distributing 14.7 grams of methamphetamine on Aug. 24, 2011, in Marshall, Texas. Diaz-Mendoza admitted to distributing 15 grams of methamphetamine on Aug. 4, 2011, in Karnack, Texas.
A federal grand jury returned an indictment on Oct. 3, 2012, charging the couple and Melecio Nunez-Duque with drug trafficking violations. Nunez-Duque pleaded guilty on Aug. 6, 2013, to distributing 59.6 grams of methamphetamine and is awaiting sentencing.
This case was investigated by the Federal Bureau of Investigation, the Marshall Police Department and the Harrison County District Attorney’s Office and prosecuted by Assistant U.S. Attorney Allen Hurst.
Memphis Police Officer James Erwin Indicted for Being an Unlawful User of Cocaine in Possession of A FirearmRead the Press Release
Memphis, TN – James Erwin, 39, of Memphis, TN, an officer with the Memphis Police
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Department, was indicted today by a federal grand jury for possessing a firearm while being an unlawful user of, and addicted to, cocaine base.
According to a criminal complaint filed on August 28, 2013, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives interviewed Erwin, who admitted to using a controlled substance for four months, including August 27, 2013, when he took his work-issued Sig Sauer pistol to a friend’s house. An individual advised Memphis Police Department officers that he has sold cocaine base to Erwin for several years, and that on August 27, 2013, that individual took several of Erwin’s personal items as security for Erwin’s crack cocaine debt.
If convicted, Erwin faces up to ten years in prison, a fine of up to $250,000 and supervised release of up to three years. This case was investigated by the Project Safe Neighborhoods initiative, which is made up of officers from the Memphis Police Department (MPD), the Shelby
County Sheriff’s Department (SCSD), and the Bureau of Alcohol, Tobacco, Firearms, and
Explosives (ATF). Assistant U.S. Attorney Jennifer Webber is representing the government.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Man from Oelwein Sentenced for Attempted Enticement of A Minor in EldridgeRead the Press Release
DAVENPORT, IA – On August 22, 2013, Steven William Bentley, age 53, from Oelwein, Iowa, was sentenced by Chief United States District Judge James E. Gritzner to 121 months in prison for attempted enticement of a minor, announced United States Attorney Nicholas A. Klinefeldt. Judge Gritzner also ordered Bentley to serve 10 years of supervised release following imprisonment and to pay $100 towards the Crime Victims Fund.
Bentley’s conviction resulted from a criminal trial held in Davenport, Iowa, in May of 2013. The evidence showed that between June 27, 2012 and July 25, 2012, Bentley, a self-employed businessman from Oelwein, chatted on-line with an agent from the Iowa Internet Crimes Against Children Task Force who was posing as a minor female. On or about July 19, 2012, Bentley arranged a meeting with the purported minor, traveled to Eldridge, Iowa, to meet her, however no meeting occurred. Bentley returned on July 25, 2013, to meet the purported minor, and he was arrested shortly after arriving at the meeting location.
This case was investigated by the Iowa Internet Crimes Against Children Task Force, the Scott County Sheriff’s Office, the DeWitt, Iowa, Police Department, the Clinton County Sheriff’s Office, the Davenport, Iowa, Police Department and the Eldridge, Iowa, Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Local Man Gets 10 Years for MethamphetamineRead the Press Release
CORPUS CHRISTI, Texas - A Corpus Christi man will be serving a significant sentence in federal prison following his conviction of one count of conspiracy to possess with intent to distribute more than 50 grams of methamphetamine, United States Attorney Kenneth Magidson announced today. Jerame Cruz, 30, pleaded guilty Jan. 11, 2013.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Cruz to a total of 120 months in prison to be followed by a five-year-term of supervised release.
In August 2012, law enforcement officials executed two search warrants at residences in Corpus Christi. At that time, officers seized approximately 339 grams of methamphetamine as well as $13,000, a .223 caliber rifle, a .380 caliber pistol and approximately 175 rounds of various caliber ammunition. Laboratory analysis determined the methamphetamine had a purity of more than 92%.
In federal custody since his arrest, Cruz will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
The FBI - Safe Streets Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives as well as the Corpus Christi Police Department Gang Unit investigated.
This case was prosecuted by Assistant U.S. Attorney Lance Watt.
tenance and transportation supervisor for PISD, maintained political control in Progreso through his sons Omar Vela, the mayor of Progreso, and Michael Vela, president of the PISD Board of Trustees. The indictment charges that Jose Vela controlled members of the PISD Board of Trustees through a system of reward and retaliation. That is, board members who voted as directed by Jose Vela were allegedly rewarded with bribe money, but those who did not follow his direction were faced with retaliation.
According to the Indictment, from 2004 to 2006, the construction company paid Omar Vela approximately $85,000 in bribes in order to be hired on projects in Progreso, including the construction of an elementary school, a school gymnasium and a municipal park. The indictment further indicates that in 2008 and 2009 the attorney paid nearly $10,000 to the three defendants in order to be hired as local counsel for PISD.
The Indictment also alleges that from 2009 to 2012, Omar Vela instructed the owner of the electrical and plumbing supply company to provide fraudulent invoices to PISD and the City of Progreso for products that were not supplied. When the invoices were paid, Omar Vela allegedly instructed the owner of the supply company to return the funds to Omar Vela as kickbacks. Through this scheme, Omar Vela is alleged to have stolen more than $14,000 from the City of Progreso and PISD.
If convicted, each face up to 20 years in prison for mail fraud, five years for the conspiracy, 10 years for each of the bribery and theft involving federal programs, and five years for each of the six counts of violations of the travel act. All charges also carry a possible maximum fine of $250,000.
The investigation was conducted by the FBI. Assistant United States Attorney Robert S. Johnson is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Lincoln Man Found Guilty of Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that Ricardo Omar Hernandez, age 36 of Lincoln, Nebraska, was convicted by a federal jury on August 29, 2013, of conspiracy to distribute 500 grams or more of methamphetamine mixture and 5 grams or more of pure methamphetamine after a trial of three-and-one-half days. The jury also found that Hernandez should forfeit $12,914.00 in cash to the United States.
Hernandez was indicted on the conspiracy charge in June of 2013. He is scheduled for sentencing on November 26, 2013. If he is found to have a prior felony drug conviction, he faces a sentence of at least 20 years to life imprisonment and a fine of up to $20,000,000. Otherwise, the potential penalty is 10 years to life imprisonment and a fine of up to $10,000,000.
Evidence presented at trial indicated that between January of 2011 and February 23, 2013, Hernandez was involved with persons who were distributing methamphetamine in the Lincoln, Beatrice, and Omaha areas. Witnesses testified at trial that Hernandez obtained methamphetamine from sources in Omaha and Lincoln. He sold methamphetamine to persons in Lincoln. Some of Hernandez’s customers sold methamphetamine in Lincoln. One customer sold methamphetamine in Beatrice.
On February 23, 2013, a search warrant was served by the Lincoln Police Department at Hernandez’s Lincoln apartment. During that search, officers found 17.41 grams of methamphetamine which was determined to be at least 95% pure along with $12,914.00 in cash.
The matter was investigated by the Lincoln/Lancaster County Narcotics Task Force, which includes the Lincoln Police Department Narcotics Unit and investigators from the Lancaster County Sheriff’s Department and the UNL Police Department, and assistance was also provided by the Nebraska State Patrol and the Federal Bureau Investigation, (FBI).League City Texas Man Sentenced on Drug and Money Laudering Conspiracy ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Will Johnson, 32, of League City, Texas, who was convicted of conspiracy to distribute kilograms of cocaine and conspiracy to commit money laundering, was sentenced to 10 years in prison and five years supervised release by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case stated that Johnson, formerly of Buffalo, distributed kilograms of cocaine from the Houston area to other individuals who thereafter distributed that cocaine in Buffalo and elsewhere in the Western New York. In July, 2010, during a wiretap investigation, law enforcement officers executed search warrants at locations including an apartment leased by the defendant in Missouri City, Texas, and his residence at 1546 Viejo Drive, in League City, Texas. Officers seized cocaine and plastic wrappers consistent with packaging for multiple kilograms of cocaine, $55,000 in U.S. currency, a .44 caliber loaded handgun, and boxes of assorted ammunition.
Johnson also deposited and transferred funds generated as a result of his drug trafficking through and to financial institutions. For instance, the defendant paid approximately $13,000 to a used car lot (Maxx Auto Sales) in Buffalo to purchase a 2004 Escalade motor vehicle. Johnson also arranged to have cash deposits of $20,000, proceeds from his unlawful distribution of cocaine, made into bank accounts. The funds were then used as a down payment for the defendant’s residence at 1546 Viejo Road in League City, Texas. As part of his sentence, Johnson will forfeit $203,000 in cash.
This conviction is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Steven L. Lanser, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent- in-Charge Toni M. Weirauch, and the Niagara County Drug Enforcement Task Force, under the direction of Sheriff James Votour.
Johnson is one of the 20 defendants convicted as a result of this drug investigation.Le Center Man Sentenced for Receiving Child PornographyRead the Press Release
MINNEAPOLIS—Late yesterday in federal court, a 47-year-old Le Center man was sentenced for receiving several videos containing child pornography. On August 28, 2013, United States District Judge David S. Doty sentenced Harold Duane Davenport to 60 months in prison on one count of receipt of child pornography. Davenport was indicted on November 5, 2012, and pleaded guilty on March 20, 2013.
In his plea agreement, Davenport admitted that from September 16, 2009, through February 6, 2010, he knowingly received visual depictions via the Internet that involved minors engaged in sexually explicit conduct. In addition, Davenport admitted that he possessed more than 600 images of child pornography, including images and videos portraying sadistic or masochistic conduct or other depictions of violence.
This case was the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the LeSueur County Sheriff’s Office, and the Minneapolis Police Department. It was prosecuted by Assistant U.S. Attorney Nathan P. Petterson.Receipt of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is presently funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
This case was brought as part of Project Safe Childhood (PSC), 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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”Larry Shane Morgan Sentenced to Serve 447 Months for Armed RobberiesRead the Press Release
GREENEVILLE, Tenn. – On Aug. 29, 2013, Larry Shane Morgan, 37, of Greeneville, Tenn., was sentenced to serve 447 months in prison by the Honorable Leon Jordan, U.S. District Judge. Following an October 2012 jury trial, Morgan was convicted of the June 2012 robbery by force of the Stop and Go Market in Chuckey, Tenn.; the July 2012 armed robbery of the Greeneville Federal Bank on the Andrew Johnson Highway; and being a convicted felon in possession of ammunition.
Morgan was sentenced to an additional 24 months for violation of supervised release on a prior federal conviction, for a total effective sentence of 471 months in prison. Upon his release from prison he will be subject to supervised release for five years. Morgan was further ordered to pay restitution to the victims of his crimes.
Federal law mandates a five year minimum mandatory sentence for possession of a firearm in the commission of a violent offense, with each additional offense of possession of a firearm in the commission of a violent offense carrying a 25 year minimum mandatory sentence.
Law enforcement agencies participating in the joint investigation include the Greeneville Police Department, Greene County Sheriff=s Department, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Johnson City Police Department, Tennessee Bureau of Investigation Crime Lab, and Sullivan County Sheriff=s Department dive team. Assistant U.S. Attorney J. Gregory Bowman represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Justice Department Announces Update to Marijuana Enforcement PolicyRead the Press Release
Today, the U.S. Department of Justice announced an update to its federal marijuana enforcement policy in light of recent state ballot initiatives that legalize, under state law, the possession of small amounts of marijuana and provide for the regulation of marijuana production, processing, and sale.
In a new memorandum outlining the policy, the Department makes clear that marijuana remains an illegal drug under the Controlled Substances Act and that federal prosecutors will continue to aggressively enforce this statute. To this end, the Department identifies eight (8) enforcement areas that federal prosecutors should prioritize. These are the same enforcement priorities that have traditionally driven the Department’s efforts in this area.
Outside of these enforcement priorities, however, the federal government has traditionally relied on state and local authorizes to address marijuana activity through enforcement of their own narcotics laws. This guidance continues that policy.
For states such as Colorado and Washington that have enacted laws to authorize the production, distribution and possession of marijuana, the Department expects these states to establish strict regulatory schemes that protect the eight federal interests identified in the Department’s guidance. These schemes must be tough in practice, not just on paper, and include strong, state-based enforcement efforts, backed by adequate funding. Based on assurances that those states will impose an appropriately strict regulatory system, the Department has informed the governors of both states that it is deferring its right to challenge their legalization laws at this time. But if any of the stated harms do materialize—either despite a strict regulatory scheme or because of the lack of one—federal prosecutors will act aggressively to bring individual prosecutions focused on federal enforcement priorities and the Department may challenge the regulatory scheme themselves in these states.
A copy of the memorandum, sent to all United States Attorneys by Deputy Attorney General James M. Cole, is available below.
Related Materials:
DAG Memo 8-29-13
Johnstown Woman Possessed Crack Cocaine Intending to Sell ItRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of possession with the intent to distribute cocaine base, commonly known as "crack," United States Attorney David J. Hickton announced today.
Ebony R. Thorne, 30, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Oct. 31, 2012, Thorne possessed less than 28 grams of cocaine base with the intent to distribute it.
Judge Gibson scheduled sentencing for Feb. 4, 2014, at 11 a.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Thorne.
Johnson County Man Sentenced to Prison for Counterfeiting U.S. Postage Meter StampsRead the Press Release
DES MOINES, IA – On August 28, 2013, David Nelson Chasse, age 43, of North Liberty, Iowa, was sentenced by Senior United States District Robert W. Pratt to four months of prison and six months of home confinement for possession with intent to use, make, print and use about $59,414 in forged and counterfeited postage meter stamps, announced United States Attorney Nicholas A. Klinefeldt. Judge Pratt also ordered Chasse to serve three years of supervised release following completion of the imprisonment, pay $59,989.87 in restitution, and to pay $100 towards the Crime Victims Fund.
Chasse obtained U. S. postage on-line for use in his business: The Birthday Company Incorporated. The United States Postal Inspection Service monitored the postage being used on The Birthday Company’s mailings and determined that some of it was counterfeit. On September 16, 2010, a federal search warrant was executed at Chasse’s residence where several thousand dollars of counterfeit metered postage stamps were seized. The investigation revealed that Chasse photocopied the sheets of postage and used the counterfeited postage for business mailings.
This case was investigated by the United States Postal Inspection Service, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Independence Man Sentenced for Meth, Assaulting OfficerRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man who bit a law enforcement officer during his arrest was sentenced in federal court today.
Robert J. Lingle, 43, of Independence, was sentenced by U.S. District Judge Beth Phillips to five years in federal prison without parole.
On Jan. 4, 2013 Lingle pleaded guilty to possessing five grams or more of methamphetamine with the intent to distribute and to assaulting a federal law enforcement officer. Lingle admitted that he agreed to sell methamphetamine to a source who was cooperating in a law enforcement investigation. When officers approached Lingle he fled.
During the foot chase, Lingle removed a loaded Rohm .22-caliber revolver from his pants. Officers ordered him to drop the weapon, at which time he did and continued to run. An officer grabbed Lingle and a struggle ensued. Lingle attempted to eat the plastic bags of methamphetamine, but the officer was able to remove the narcotics from his mouth and toss them aside. Lingle then grabbed the officer’s arm and intentionally bit him on his hand, breaking skin and drawing blood.
This case was prosecuted by Special Assistant U.S. Attorney Leena Ramana. It was investigated by Homeland Security Investigations and the Kansas City, Mo., Police Department.Illinois Man Pleads Guilty to Tax Fraud Related to Embezzlement from Indonesian Airline- Admits Failure to Report $284,500 in Income -Read the Press Release
WASHINGTON - Alan Messner, 41, of Rolling Meadows, Illinois, pled guilty today in the U.S. District Court for the District of Columbia to one count of tax evasion related to his failure to report $284,500 in income he received in 2006 and 2007.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
As part of his guilty plea, Messner admitted that, in December 2006, he and Jon C. Cooper induced an Indonesian airline company to pay them a $1 million security deposit to lease two aircraft using various false and fraudulent pretenses, representations, and promises – including forged and fraudulent documents. Messner admitted that, after Cooper received the $1 million security deposit, Cooper transferred $284,500 to Messner in December 2006 and January 2007. Messner spent that portion for his own personal benefit. Likewise, Cooper spent the balance of the security deposit for his own personal benefit. Cooper and Messner did not provide the promised aircraft and did not return any funds to the Indonesian airline company.
Messner admitted that he did not report any portion of the $284,500 on his federal income tax returns for either tax year. As a result of Messner’s tax evasion, Messner caused a tax loss of $62,231.60 to the United States.
Messner is scheduled to be sentenced on December 13, 2013, before the Honorable Amy Berman Jackson. On the tax evasion charge, Messner faces a maximum sentence of five years in prison and a $250,000 fine. In addition, as part of his guilty plea, Messner agreed to pay the full $62,231.60 owed to the United States.
In the related case, Cooper is scheduled for trial on Jan. 21, 2014, also in the U.S. District Court for the District of Columbia. In April 2013, a grand jury returned a superseding indictment against Cooper, charging him with conspiracy, first-degree fraud, wire fraud, and money laundering related to the embezzlement from the Indonesia airline. The superseding indictment against Cooper also includes counts of bank fraud, making a false statement on a loan application, and aiding or assisting the filing of a false tax return. The superseding indictment reincorporates a forfeiture allegation seeking all proceeds obtained through the wire fraud and money laundering scheme. Cooper, 64, of Washington, D.C, has pled not guilty to those charges.
According to the superseding indictment, in or about December 2006, Cooper and Messner offered to lease two aircraft to an Indonesian airline company, although their company owned no such aircraft. Instead, Cooper induced the Indonesian airline to agree to the deal - and pay a $1 million security deposit - by using a forged letter from an attorney whom Cooper claimed would hold the deposit. Similarly, Cooper allegedly used a forged letter purporting to represent that Cooper’s company had an agreement to buy the aircraft it would lease to the Indonesian airline. As the superseding indictment charges, based on those and other false representations, the Indonesian airline made the $1 million security deposit. But the very day the security deposit was received, Cooper moved it to his personal account. Cooper then spent it on personal expenses, such as his credit card debt and personal loans.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
The case is being investigated by the FBI’s Washington Field Office and the Washington Field Office of IRS-CI. It is being prosecuted by the U.S. Attorney’s Office for the District of Columbia.
13-296Huntsville Man Indicted for Series of Bank RobberiesRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted a Huntsville man for 11 robberies or attempted robberies at banks across north central and north western Alabama, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.An indictment filed in U.S. District Court charges CEDRICK LAMOND HICKS, 32, with nine counts of bank robbery and two counts of attempted bank robbery. In all, the banks were robbed of more than $43,000. Most of the charges are for robberies or attempted robberies in 2012, while one charge is for a 2006 bank robbery and two are for bank robberies this year.
The date, location and amount of money stolen are as follows, according to the indictment:
• Dec. 13, 2006, Regions Bank, Madison Street, Huntsville, $3,074.
• Feb. 22, 2012, Regions Banks, Madison Street, Huntsville, $2,870.
• March 23, 2012, First Jackson Bank, Sutton Road, Huntsville, $1,894.
• April 30, 2012, Renasant Bank, U.S. 72 West, Madison, $3,500.
• Aug. 2, 2012, Peoples Bank, U.S. 431 South, Guntersville, $890.
• Aug. 8, 2012, Traditions Bank, Alabama 67 South, Decatur, $7,243.
• Nov. 27, 2012, Regions Banks, Lee Street, Rogersville, $8,009.
• Jan. 7, 2013, Peoples Trust Bank, Military Street South, Hamilton, $9,000.
• March 6, 2013, ServisFirst Bank, Meridian Street, Huntsville, $6,575.The attempted bank robberies were on Sept. 18, 2012, at Cadence Bank, U.S. 431, Albertville, and on Nov. 26, 2012, at Traditions Bank, Second Avenue NW, Cullman.
The maximum penalty for each robbery count is 20 years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Mary Stuart Burrell is prosecuting.
The public is reminded than an indictment contains only charges. A defendant is presumed innocent and it will be the government's responsibility to prove the defendant's guilt beyond a reasonable doubt at trial.
Houston Based Principal of A&O Entities Resentenced in Virginia for $100 Million Fraud SchemeRead the Press Release
RICHMOND, Va.– A principal of A&O Resource Management Ltd. has been resentenced for his role in a $100 million life settlement fraud scheme, which included more than 800 victims across the United States and Canada. Today, Adley H. Abdulwahab, 38, of Houston, a hedge fund manager and part owner of A&O, was resentenced to 60 years in prison.
Abdulwahab originally was sentenced to 60 years in prison on September 28, 2011. On April 29, 2013, the United States Court of Appeals for the Fourth Circuit reversed five of Abdulwahab’s money laundering convictions. Today United States District Judge Robert E. Payne resentenced Abdulwahab to the same term of imprisonment on the remaining counts of conspiracy, mail fraud, and securities fraud.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service; Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation; and Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by Judge Payne.
On September 7, 2010, a federal grand jury returned an 18-count indictment against Abdulwahab, Christian Allmendinger, 40, and David White, 41. White and four others associated with the fraud scheme pleaded guilty in the fall of 2010. Allmendinger was convicted at trial on March 23, 2011, and Abdulwahab was convicted at trial on June 10, 2011.
According to court records and evidence presented at trial, the principals at A&O engaged in a scheme to defraud investors by making misrepresentations about such things as A&O’s prior success, its size and office locations, its number of employees, the risks of its investment offerings, and its safekeeping and use of investor funds. Both Abdulwahab and Allmendinger were active in the day-to-day management of the companies, as well as in the marketing of A&O life settlement investment products to investors. Abdulwahab also lied to investors about having a college degree in economics, as well as failing to disclose to investors that he previously pleaded guilty to a felony charge of forgery of a commercial instrument in Texas state court.
When state regulators began to scrutinize A&O’s investment products, Abdulwahab and others manufactured a sham sales transaction to “sell” A&O to a shell corporate entity named Blue Dymond and later to another shell corporate entity named Physician’s Trust. This sale ended Allmendinger’s association with the fraud scheme; however, A&O and Physician’s Trust were still secretly controlled by Abdulwahab and his co-conspirators, who continued the fraud scheme through September 2009. The A&O fraud scheme caused more than 800 investors, many of whom were elderly, to lose more than $100 million. The vast majority lost all of their investment, which represented for many all of the money they had saved for their retirement.
Evidence at trial showed that Abdulwahab and the other A&O principals used the investors’ money for personal enrichment, including purchasing multi-million dollar homes, luxury cars, a 15-carat diamond ring and other property.
On September 27, 2011, Allmendinger was sentenced to 45 years in prison. On June 22, 2011, five other individuals connected with the A&O fraud scheme were sentenced: Russell E. Mackert, 52, general counsel for A&O, was sentenced to 188 months in prison; Brent Oncale, 36, former owner and founder of A&O, was sentenced to 120 months in prison; White, the former president of A&O, was sentenced to 60 months in prison; Eric M. Kurz, 47, a wholesaler of A&O investment products, was sentenced to 60 months in prison; and Tomme Bromseth, 69, an A&O sales agent in the Richmond area, was sentenced to 36 months in prison.
This investigation was conducted by the U.S. Postal Inspection Service, Internal Revenue Service, and FBI, with significant assistance from the Texas State Securities Board, the Virginia Corporation Commission and the SEC. These cases are being prosecuted by Assistant U.S. Attorneys Michael S. Dry and Jessica D. Aber from the Eastern District of Virginia and Trial Attorney Albert B. Stieglitz Jr., of the Criminal Division’s Fraud Section.
The 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 an investigative arm of the President’s Financial Fraud Enforcement Task Force, an interagency national task force.
President Obama established the Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
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.Honduran Sentenced to 8 Months in Prison for Reentering the United States IllegallyRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that Marco Tulio Sanabria-Caceres, 25, of Honduras, was sentenced by U.S. District Judge Patricia Minaldi to eight months in prison for reentering the United States after being deported.
According to evidence presented at the guilty plea, on Sept. 18, 2012, U.S. Border Patrol agents conducted a traffic stop on a vehicle containing five individuals. They all admitted to being in the United States illegally. Sanabria-Caceres admitted to being from Honduras. After further investigation, it was learned that Sanabria-Caceres was convicted on Feb. 10, 2012 in Leesburg, Va., on two counts of a Class IV felony, which was carnal knowledge of a juvenile. He was sentenced to serve two years with part of the sentence suspended for the two counts and was deported June 1, 2012. Sanabria-Caceres admitted to reentering the United States without permission and pleaded guilty to the charge May 29, 2013.
Homeland Security Investigations and the U.S. Border Patrol conducted the investigation. Assistant U.S. Attorney Howard C. Parker prosecuted the case.Hartford Man Sentenced to 37 Months in Federal Prison for Role in Illegal Gun SalesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MIGUEL ORTIZ, 48, of Hartford, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 37 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms and ammunition.
According to court documents and statements made in court, between December 2011 and April 2012, ORTIZ stored firearms for his 19-year-old nephew, Johnny Rosa, and assisted Rosa in the illegal sale of those firearms. ORTIZ is a felon who has prior convictions for firearms and narcotics offenses.
In May 2012, a search of ORTIZ’s Maple Avenue residence revealed an assortment of ammunition.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On January 17, 2013, ORTIZ pleaded guilty to one count of possession of a firearm and ammunition by a convicted felon.
On November 9, 2012, Rosa, also known as “Johnny J,” pleaded guilty to one count of transferring a firearm to a prohibited person. On May 28, 2013, he was sentenced to 36 months of imprisonment.
This matter was investigated by Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, which includes members of the Connecticut State Police, Hartford Police Department, Connecticut Department of Correction and Connecticut National Guard.
This case was prosecuted by Assistant United States Attorney Brian P. Leaming.
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(203) 821-3722 [email protected]Hallandale Beach Tax Preparer Sentenced for Filing False Tax Returns on Behalf of Himself and His ClientsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigations (IRS-CI), announce that defendant Efrain Felipe, 41, of Hallandale Beach, was sentenced today before U.S. District Judge Robert N. Scola Jr. Defendant Felipe was sentenced to 18 months of imprisonment, to be followed by one year of supervised release. In addition, Felipe was ordered to pay restitution to the Internal Revenue Service in the amount of $17,989. Felipe previously pled guilty to a two-count Information, charging him with making and subscribing a false tax return on behalf of a client, and aiding and abetting, in violation of Title 26, United States Code, Sections 7206(1) and 7206(2).
According to court documents and statements made in court, Felipe operated a tax preparation business in Broward County, and prepared tax returns on behalf of his customers, falsely claiming that some customers were entitled to a First Time Home Buyers Credit (FTHBC) of $7,500 for properties they did not own or for properties that were purchased years earlier. Felipe also falsely claimed the FTHBC on his own personal tax return.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant U.S. Attorney Norman O. Hemming, III.
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.
Geoff Billips Sentenced to Serve 104 Months in Prison for Armed RobberyRead the Press Release
GREENEVILLE, Tenn. – Geoff Billips, 36, of Bluff City, Tenn., was sentenced on Aug. 28, 2013, to serve 104 months in prison, by the Honorable J. Ronnie Greer, U.S. District Judge. Upon his release from prison, Billips will be subject to probation under the supervision of the U.S. Probation Office for five years.
Billips pleaded guilty in April 2013 to the armed robbery of the Check Into Cash business on Volunteer Parkway in Bristol, Tenn., and to brandishing a firearm in furtherance of the robbery. Because he brandished a firearm in furtherance of the robbery, he faced a minimum 84 month sentence up to life in prison for the firearm charge alone.
Law enforcement agencies participating in the joint investigation which led to the indictment and subsequent conviction of Billips include the Bristol Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Federal Bureau of Investigation (FBI). Assistant U.S. Attorney J. Gregory Bowman represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Funds Obtained in $4,078,713.00 Forfeiture Case Shared with Local and State Law Enforcement from Tennessee, North Carolina and CaliforniaRead the Press Release
KNOXVILLE, Tenn. – On Aug. 29, 2013, a press conference was held at the U.S. Attorney’s Office in Knoxville, Tenn., to present 19 local and state law enforcement agencies with their share of funds forfeited in the case of U.S. v. Francisco Javier Cruz-Ramirez, et. al.
Agencies receiving forfeiture sharing funds in this case include:
Blount County Tennessee Sheriff's Office $ 69,813.93
City of Jacksonville North Carolina Police Department $157,081.34
City of Wilmington North Carolina Police Department $418,883.57
Cumberland County North Carolina Sheriff's Office $244,348.75
Duplin County North Carolina Sheriff's Office $209,441.79
Fayetteville North Carolina Police Department $244,348.75
Tennessee Fifth Judicial District Drug Task Force $ 34,906.97
Knox County Tennessee Sheriff's Office $ 69,813.93
Knoxville Tennessee Police Department $139,627.85
La Verne California Police Department $ 34,906.97
Lenoir City Tennessee Police Department $ 69,813.93
Metro Knoxville Airport Authority Police $ 69,813.93
Monterey Tennessee Police Department $ 34,906.97
North Carolina Department of Public Safety $349,069.64
Oak Ridge Tennessee Police Department $ 69,813.93
Sampson County North Carolina Sheriff Department $279,255.72
Tennessee Bureau Of Investigation $ 69,813.93
Tennessee Department Of Safety $ 69,813.93
Town of Leland North Carolina Police Department $157,081.34
This case involved an investigation of a Mexican drug trafficking organization. Evidence gained through a wiretap investigation led to agents being able to identify and stop a semi-truck being driven by Armando Guzman Villegas and Javier Cruz-Ramirez as it traveled west through the Eastern District of Tennessee on Interstate 40. The subsequent search of the contents of the truck revealed several pallets of shrink wrapped bottled water. One of the shrink wrapped pallets contained approximately $4.1 million in cash, contained in approximately 200 duct taped bundles, with approximately $20,000 in cash in each bundle.
Cruz-Ramirez pleaded guilty to aiding and abetting interstate transportation in aid of racketeering enterprises. He was sentenced to serve 60 months in prison, followed by three years of supervised release.
Villegas pleaded guilty to conspiracy to distribute five kilograms or more of cocaine and to aiding and abetting interstate transportation in aid of racketeering enterprises. He was sentenced to serve 60 months in prison, followed by five years of supervised release.
The court also ordered the forfeiture of $4,078,713.00 in cash.
In addition to the agencies receiving sharing checks, the Drug Enforcement Administration played a significant role in the investigation which led to the subsequent conviction and sentencing of these individuals. Assistant U.S. Attorney David Lewen represented the United States. Assistant U.S. Attorney Frank Dale assisted with the forfeiture.
The Department of Justice Asset Forfeiture Program is a nationwide law enforcement initiative that removes the tools of crime from criminal organizations, deprives wrongdoers of the proceeds of their crimes, recovers property that may be used to compensate victims, and deters crime. The most important objective of the Program is law enforcement. Equitable sharing further enhances this law enforcement objective by fostering cooperation among federal, state, and local law enforcement agencies. Any state or local law enforcement agency that directly participates in an investigation or prosecution that results in a federal forfeiture may request an equitable share of the net proceeds of the forfeiture.
Former Union Official Charged with Embezzling FundsRead the Press Release
PITTSBURGH, Pa. - A Beaver County resident has been indicted by a federal grand jury in Pittsburgh on a charge of union embezzlement, United States Attorney David J. Hickton announced today.
The one-count indictment named David L. Barr, 50, as the sole defendant.
According to the indictment, David L. Barr, while a Financial Secretary-Treasurer of the Local No. 99 of the Glass, Molders, Pottery, Plastics & Allied Workers International Union, AFL-CIO, CLC, stole approximately $5,688.40 from the union by cashing 19 employer dues remittance checks belonging to the labor organization and converting the monies to his own personal use during the period from April 9, 2010 through Sept. 22, 2011.
The law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Department of Labor, Office of Labor Management Standards, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former North Carolina Probation Officer Sentenced for Coercing Probationer into Sexual ActsRead the Press Release
Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division and Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina, announced today that former North Carolina Department of Correction’s Division of Community Corrections Probation Officer Willie James Steele Jr., 43, has been sentenced for violating the constitutional rights of a female probationer that he was supervising by coercing her into sexual acts on two separate occasions.
According to an indictment and evidence presented in court, Steele supervised the female probationer in 2008 after her probation was transferred to North Carolina from another state and he had the authority to recommend to a court or other agency that the victim be incarcerated or otherwise sanctioned if she violated the conditions of her probation. On Dec. 12, 2012, after a two-day trial, a jury found Steele guilty of two civil rights violations for depriving the victim of her constitutional right to bodily integrity by having non-consensual sexual intercourse with her during two separate probation meetings.
Chief Judge Robert J. Conrad, who presided over the trial, sentenced Steele to serve the statutory maximum incarceration of 24 months in prison, to be followed by one year of supervised release, for his convictions at trial.
“Probation officers are given a great deal of power in order to carry out their critical responsibilities, but this officer abused that power and violated the civil rights of a woman under his supervision,” said Acting Assistant Attorney General Samuels. “We will vigorously prosecute any probation officer who uses his position of trust to prey upon those he supervises.”
“Any time a law enforcement officer breaks the law it undermines the public’s trust in the legal system and we will do everything we can to ensure that trust is not compromised,” said U.S. Attorney Tompkins. “My office will prosecute those who abuse their position of power and use it to violate the civil rights of others.”
This case was investigated by the FBI and the North Carolina State Bureau of Investigation, and is being prosecuted by the Assistant U.S. Attorney Kimlani Ford from the Western District of North Carolina and Trial Attorney Shan Patel from the Civil Rights Division.
Former Bookstore Manager Sentenced for Stealing $1.1 Million from Missouri State UniversityRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former manager of the Missouri State University bookstore was sentenced in federal court today for embezzling more than $1.1 million by pocketing the money from the school’s textbook buyback program.
Mark Brixey, 48, of Ozark, Mo., was sentenced by U.S. District Judge Gary A. Fenner to five years and three months in federal prison without parole. The court also ordered Brixey to pay $1,329,484 in total restitution to his victims, including $163,237 to Missouri State University, $166,247 to the Internal Revenue Service and $1 million to Zurich American Insurance Company.
On March 26, 2013, Brixey pleaded guilty to wire fraud, money laundering and filing a false tax return. Brixey, the manager of the MSU bookstore from 1998 to August 2012, admitted that he embezzled $1,163,237 from the student textbook buy-back program.
Brixey’s 10-year fraud scheme began in 2003 with the theft of nearly $29,000 and escalated each year, with more than $190,000 stolen during each of the last two full years of the scheme in 2010 and 2011. Brixey embezzled another $20,580 before he resigned in 2012.
Textbook Buyback Scheme
As manager of the MSU bookstore, Brixey handled all contacts related to the textbook buy-back program. At the close of each semester, MSU students had the opportunity to sell their used textbooks to Follett Educational Services, which contracted with MSU to administer the book buy-back program. Follett operated 10 textbook buy-back stations on the MSU campus during finals week in December and May of each year.
On the last day of each buy-back period, a Follett representative prepared a report that detailed how many textbooks were purchased and at what price. A Follett representative also calculated the commissions to be paid to MSU for allowing Follett to conduct the textbook buy-back program at the university. A Follett representative gave a sight draft/check to Brixey for payment of the commission to MSU (beginning in 2011, the Follett representative paid the commission in cash directly to Brixey).
Follett also purchased textbooks that were no longer used by MSU professors directly from the MSU bookstore. Similar to the textbook buy-back program, a Follett representative calculated the total amount to be paid to MSU for these books and gave a sight draft/check to Brixey. The bookstore also disposed of surplus textbooks by reselling them to textbook wholesalers, such as MBS Textbook Exchange, Inc., and Nebraska Book Company.
When Brixey received sight drafts/checks payable to MSU for these buy-back programs, he took those checks to the MSU bursar’s office. Brixey falsely claimed that the sight drafts/checks were needed to pay students for books purchased in the buy-back program. The bursar’s office relied upon Brixey’s misrepresentations and provided cash to Brixey.
Brixey did not record the cash received in the MSU Bookstore accounting system, but instead used the cash for his personal benefit.Count One: Wire Fraud
Brixey admitted that he executed the scheme to cause electronic transmissions related to the processing of sight drafts (in connection with the commissions and the purchase of textbooks).
Count Two: Money Laundering
Brixey admitted that he concealed his fraud scheme by disguising the proceeds through multiple financial transactions. Brixey routinely deposited the proceeds of his fraud scheme into Educational Credit Union accounts then transferred cash from those accounts to purchase and add value to certificates of deposit. Between Jan. 11, 2008, and July 16, 2012, Brixey made or caused to be made 55 transfers totaling $121,000 from Education Credit Union deposit accounts to Educational Credit Union certificates of deposit.
Count Three: Filing a False Tax Return
Brixey admitted that on April 15, 2011, he filed a tax return that failed to report approximately $194,521 in income received through the fraud scheme in 2010. Brixey also filed a tax return for 2011 that failed to report $192,202 of income from his fraud scheme and a tax return for 2009 that failed to report $166,354 of income from his fraud scheme.
Between 2009 and 2011, Brixey failed to report a total of $553,077 of income from his fraud scheme, resulting in a tax loss to the government of approximately $166,247 for those three years.
This case was prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the U.S. Secret Service, IRS-Criminal Investigation, the Springfield, Mo., Police Department and the Greene County, Mo., Prosecuting Attorney.
Former Big Spring, Texas, Man Faces 10 Years in Federal Prison for E-Mailing Obscene Video to Undercover Law Enforcement OfficerRead the Press Release
Defendant Believed He Was Sending Video to a 15-Year-Old Girl
LUBBOCK, Texas — Paul Harvilicz, 62, of Copperas Cove, Texas, pleaded guilty today, before U.S. District Judge Sam R. Cummings, to a superseding indictment charging one count of attempted transfer of obscene material to a minor. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Harvilicz, who has been in custody since he was arrested in Waco on March 27, 2013, on related charges, faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, from May 29, 2011, through mid-October 2011, while living in Big Spring, Texas, Harvilicz engaged in a series of communications using Yahoo! messaging and email with a person he believed to be a 15-year-old girl, who represented that she lived in Kentucky. In fact, Harvilicz was actually communicating with a law enforcement officer in Kentucky. On June 28, 2011, Harvilicz emailed this person an obscene video file, depicting an adult male and female engaged in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Kenton County Police Department, Kenton County, Kentucky. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.