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Wednesday 10 July 2013
Rapid City Man Sentenced for EscapeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota man convicted of Escape was sentenced on July 8, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Floyd Bullman, age 41, was sentenced to time served and ordered to pay $100 to the Federal Crime Victims Fund.
On November 5, 2012, Bullman walked away and failed to return to Community Alternatives of the Black Hills, where he was serving part of a federal sentence. He pled guilty on March 8, 2013.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
# # #Raleigh Co. Man Indicted by Federal Grand Jury on Illegal Firearm Possession ChargesRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that a Raleigh County man was indicted on July 9 by a federal grand jury sitting in Beckley on illegal firearm possession charges. Cameron Martin Taylor, 24, of Shady Spring, Raleigh Co., W.Va., was charged with being a felon in possession of a firearm and possession of a stolen firearm. According to a two-count indictment, on April 24, 2013, Taylor allegedly possessed an AR-50 rifle near White Oak, Raleigh Co., W.Va. The indictment also alleges that Taylor knew and had reasonable cause to believe that the firearm he possessed at the time was stolen.
Taylor was previously convicted of grand larceny, daytime burglary, and nighttime burglary in April 2010 in the Circuit Court of Raleigh County. He did not have his rights to possess a firearm restored.
Taylor faces up to 10 years in prison on each count if convicted.The investigation was conducted by the West Virginia State Police. Assistant United States Attorney John File is in charge of the prosecution.
The case is being brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Note: The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Click here to view a copy of the indictment
Parmelee Man Charged with Assaulting, Resisting, Opposing and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmelee, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
William Rahn, age 27, was indicted by a federal grand jury on May 16, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 8, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is up to 20 years in custody, a $250,000 fine, or both; 3 years of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Rahn is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Rahn was released to a third party custodian pending trial. A trial date has not been set.
###Numerous Attorneys, Mortgage Brokers, Real Estate Professionals, and Devleopers Face Prison Time in Connection with Multiple Mortgage Fraud Schemes Uncovered in Eastern North CarolinaRead the Press Release
RALEIGH – The United States Attorney’s Office announced the unsealing of numerous federal cases and other court actions involving attorneys, mortgage brokers, real estate professionals, and developers, who are charged with federal crimes pertaining to mortgage fraud.
“Mortgage fraud impacts families and devastates neighborhoods. The FBI is committed to protecting our nation’s economy by aggressively investigating those who attempt to undermine the financial stability of our housing market,” said John Strong, Special Agent in Charge of the Charlotte Division of the FBI.
“The Federal Deposit Insurance Corporation - Office of Inspector General is committed to its partnerships with others in the law enforcement community as we address mortgage fraud cases throughout the country. The American people need to be assured that their government is working to ensure integrity in the financial services and housing industries and that those involved in criminal activities that undermine that integrity will be held accountable,” commented the Federal Deposit Insurance Corporation Inspector General Jon T. Rymer.
“We recognize the negative impact that mortgage fraud has on our economy and on our communities. With actions like those announced today, a very clear message is sent: if you don’t operate within the boundaries of the law, we will not hesitate to act. We will continue to work with our law enforcement partners to ensure the US Mail is safe and not used to further schemes like this”, said Inspector in Charge Keith Fixel, US Postal Inspection Service.
HUD-OIG Special Agent in Charge Lester Fernandez said: “We are especially committed to aggressively pursuing mortgage and real estate professionals who instead of honoring their fiduciary responsibilities, abuse their positions and cause harm to FHA’s mortgage insurance programs. HUD-OIG is committed to working cooperatively with our law enforcement partners to bring these individuals to justice and protect the integrity of our programs.”
“IRS Criminal Investigation is committed to uncovering fraud and abuse in all facets of the housing market – a market upon which so many American families have pinned their hopes and their futures for so many years," said Special Agent in Charge, Jeannine A. Hammett, Charlotte Field Office. "Partnering with the United States Attorney’s Office and other federal agencies, IRS Criminal Investigation is committed to combating mortgage fraud and other financial crimes to protect the American homeowner and the national economy."
Each of the following cases is being prosecuted by the Economic Crimes Section of the United States Attorney’s Office as a part of its Mortgage Fraud Task Force which was created in June of 2010. The investigation of these cases has been jointly conducted by various agencies, including the Federal Bureau of Investigation (FBI), the United States Department of Housing and Urban Development Office of the Inspector General (HUD-OIG), the Internal Revenue Service Criminal Investigation (IRS-CI), the United States Postal Inspection Service, the Federal Deposit Insurance Corporation - Office of the Inspector General (FDIC-OIG) and the Raleigh Police Department. Assistant United States Attorney William M. Gilmore represents the United States in each of these matters.
- TRIPLE-R ENTERPRISES ET AL. INVESTIGATION
- EZN HOMES / PREMIER PROPERTIES INVESTIGATION
- ALPINE PROPERTIES, ET AL. INVESTIGATION
- RBR CAPITAL ET AL. INVESTIGATION
Chief United States District Judge James C. Dever ordered the unsealing today of the cases against mortgage broker DEXTER TIRRELL JONES, 42 of Raleigh; developer RICKY LAMONT CONGLETON, 43, of Zebulon; closing attorney PHILLIP GRAHAM ROSE, 42 of Raleigh; developer VINCENT MALDINI, 46, of Seabright, New Jersey; and developer JOHNNY RAY PEELE, 43, of Wake Forest. The United States Attorney’s Office also announces the filing of criminal charges against JOSEPH CARL HOLLIS, 35, of Raleigh; developer DWAYNE THOMAS HALL, 49, of Wake Forest, and former real estate broker, TRESHELL MAYO HERNDON, 39, of Raleigh. JONES, CONGLETON, ROSE, MALDINI, PEELE, HALL, and HERNDON, are each charged in a one-count criminal information with Conspiracy to Commit Bank and Wire Fraud (and in some instances, also Conspiracy to Commit Mail Fraud), in violation of Title 18, United States Code, Section 1349, which carries a maximum penalty of 30 years in prison and a $1 million fine, or twice the gain or loss from the conspiracy, whichever is greater. HOLLIS is charged with Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 371, which carries a maximum penalty of up to 5 years in prison and a fine of up to $250,000, or twice the gain or loss from the conspiracy, whichever is greater.
The charging documents collectively allege that between 2003 and 2009, CONGLETON, HERNDON, PEELE, HALL, MALDINI, JONES, HOLLIS, ROSE, and others known to the United States Attorney, were involved in a conspiracy to defraud numerous banks and lenders in the United States, resulting in mortgage loan disbursements exceeding $20 million, $5 million in loan proceeds, and losses exceeding $1 million. The conspiracy further resulted in substantial losses to the United States Department of Housing and Urban Development (HUD) through its Federal Housing Administration (FHA) program.
The charging documents indicate that various developers in the scheme, including but not limited to CONGLETON, operating through Triple R Enterprises, LLC; HERNDON, operating through Herndon & Herndon Enterprises, LLC; HALL, operating through Dwayne T. Hall Builders; PEELE, operating through P.A.P’s Custom Home Builders, LLC and C and P Custom Homes, LLC; and MALDINI, operating through NY Construction, LLC, unlawfully profited from the sale of properties purchased or developed by the conspirators to individuals who did not have the financial means to purchase the properties, identified in the charging documents as “straw buyers”. To execute the scheme, CONGLETON, HERNDON, HALL, PEELE, MALDINI, and others involved in the scheme referred to as “Builders”, would cause entities owned or controlled by them to purchase and develop a property for quick resale. The builders caused individuals, referred to herein as “Intermediaries”, to locate individuals who were willing to allow their name and credit to be used to purchase properties from the Builders. The Intermediaries, including but not limited to HOLLIS, MALDINI and then mortgage broker, JONES, assisted the straw buyers to complete a loan application with a lender. For their services to the Builders, the conspirators paid the Intermediaries a kickback, or lump sum of cash, from the loan proceeds used by the straw buyers to purchase the properties from the Builders.
Conspirators enticed the straw buyers to participate in the scheme by making certain promises and representations including, but not limited to the following: (1) The straw buyers would be paid a sum of cash for purchasing the properties, (2)the straw buyers would not be required to make a down payment, (3) the straw buyers were told that the homes would be rented and the rental income would be used to pay the mortgage,(4) the straw buyers would not be required to make interest payments on the mortgage loans utilized to purchase the properties from the Builders.
CONGLETON, HERNDON, HALL, PEELE, MALDINI, and other Builders executed contracts to sell properties to the straw buyers for their appraised value, but set aside 15 to 20% of the sales price to use as the straw buyer’s down payment, and to pay kickbacks to the straw buyers and others participating in the scheme. The Builders further obtained and caused others to obtain cashier’s checks from accounts owned or controlled by the Builders to cover the down payment obligations of the straw buyers. The cashier’s checks were written to make it appear to lenders and banks that the straw buyers were providing the down payment funds when, in fact, such funds came from the Builders. These cashier’s checks were given to a closing attorney who handled the sale of the property from the Builder to the straw buyer.
Raleigh attorney PHILLIP GRAHAM ROSE served as the closing attorney on some, but not all, real estate transactions between Builders and straw buyers that were funded by banks and mortgage lenders in the scheme. In connection with the transactions involving the Builders and straw buyers, ROSE created and executed, and had the buyers and sellers execute, HUD-1 settlement statements that falsely indicated that the borrower brought cash to the closing when, in fact, as ROSE knew, the cash was provided by the Builders, including CONGLETON, HERNDON, HALL, PEELE, MALDINI, and others. ROSE and his staff transmitted the false HUD-1 settlement statements via mail and interstate wires to banks and mortgage lenders who relied upon them in funding the transactions. The Builders and straw buyers executed the HUD-1 settlement statements reflecting that the straw buyers were making the down payment on the properties, when in fact, the down payments were made by the Builders.
Because of the foregoing actions, banks and other lenders were deceived into disbursing loan proceeds to fund the purchase of the properties from CONGLETON, HERNDON, HALL, PEELE, MALDINI, and other Builders. The banks and lenders issued loans they either would not otherwise have made, or issued loans on terms they would not otherwise have authorized, had the Builders and others not concealed the true terms of the transactions, the actual qualifications and intentions of the straw buyers, the promises and representations made by the Builders and others to the straw buyers, and the false down payments of the straw buyers as reflected on the HUD-1 settlement statements.
Rental income was collected and sometimes not forwarded to pay the mortgage, as promised. The Builders also did not always make interest payments on loans issued to the straw buyers. As a result of the scheme, straw buyers were left accountable for loans that they did not have the financial means to repay, and banks were forced to initiate foreclosure proceedings and sell the properties at a loss.
In an effort to recover losses associated with the scheme, the United States Attorney’s Office, with the cooperation of the various federal agencies participating in the Mortgage Fraud Task Force, and the United States Marshal’s Service, has seized or encumbered various parcels of real property and other property in North Carolina deemed to be forfeitable to the United States as criminal proceeds of the offense.
ROSE, JONES, CONGLETON, and MALDINI have each admitted their their role in the scheme and are awaiting sentencing, anticipated to occur later in 2013. PEELE is scheduled to appear on the charges on July 15, 2013. HERNDON, HALL, and HOLLIS are each scheduled to appear on the charges on August 19, 2013.
The investigation of this matter is ongoing and anyone with knowledge is encouraged to contact the FBI at (704) 672-6100. If you believe that you are a victim in connection with this investigation please contact the Victim/Witness Coordinator for the United States Attorney’s Office at (919) 856-4003.
Chief United States District Judge James C. Dever ordered the unsealing today of the cases against real estate developers DAVID LEWIS JOHNSON, 39 of Cary, and ARTHUR LEE BARNES, JR., 46 of Rocky Mount. The BARNES and JOHNSON cases are related to the pending cases against real estate agent MARK TKAC, 47, of Raleigh, former mortgage broker MARK THOMAS BOWE, 56, of Jonesboro, Georgia, LILLIANA DELIA DEIAC, 43, of Jamaica, New York, and the recently concluded case against closing attorney JEFFERY SCOTT TAGGART, 48, of Winterville. JOHNSON, BARNES, and TKAC, were each charged in a one-count criminal information with Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 1349, which carries a maximum penalty of 30 years in prison and a $1 Million fine. TAGGART was charged with Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 371, which carries a maximum penalty of 5 years in prison and $250,000 in fines, and Subscribing to a False Income Tax Return in violation of Title 26, United States Code, Section 7206(1), which carries a maximum penalty of 3 years in prison and a $100,000 fine, plus costs of prosecution. BOWE was charged in an indictment with Conspiracy to Commit Wire and Bank Fraud, in violation of Title 18, United States Code, Section 1349; Bank Fraud, in violation of Title 18, United States Code, Section 1344; Wire Fraud, in violation of Title 18, United States Code, Section 1343; and Making False Statements to Federally Insured Financial Institutions, in violation of Title 18, United States Code, Section 1014; all of which carry a maximum penalty of 30 years in prison and a $1 Million fine.
The criminal informations for JOHNSON, BARNES, TKAC, and TAGGART collectively allege that between September of 2002 and May of 2008, JOHNSON, BARNES, TKAC, and TAGGART entered into an agreement to defraud banks and home mortgage lenders located throughout the United States. The charges indicate that JOHNSON, operating through EZN Homes, Inc., BARNES, operating through Premier Investments, Inc., and TKAC recruited investors, who were in fact “straw buyers,” to secure home mortgage loans under the guise of an investment plan. The straw buyers allowed the conspirators to use their name and credit to purchase properties and obtain loans from banks and mortgage lenders. The straw buyers lacked the financial means to service the debt on the loans acquired in their names. The straw buyers also did not have a long-term interest in the properties that the conspirators caused to be purchased in their names. The conspirators induced the straw buyers to allow their name and credit to be used by making various representations, including, but not limited to, the promise of a cash kickback from the loan proceeds disbursed at the time of the real estate closing.
TKAC, a licensed real estate broker at the time, participated in the conspiracy first by acting as a straw buyer, and later recruiting others to serve as straw buyers to facilitate the scheme by JOHNSON and BARNES.
The conspirators directed straw buyers to conduct the real estate closings with co-conspirator attorney TAGGART. TAGGART prepared false HUD-1 settlement statements for execution by the straw buyers as a part of the real estate closing and loan funding process. TAGGART then caused the HUD-1 settlement statements to be transmitted via mail and wire to banks and mortgage lenders, including FDIC regulated financial institutions, under the pretense that they reflected the economic truth of the underlying transaction.
In fact, however, the HUD-1 settlement statements prepared by TAGGART as a part of the scheme routinely contained false statements that were material to the lenders' funding decisions including, but not limited to: the existence and degree of the buyer's down payment, the actual contract price for the property, the rightful owner of the real estate specific to the transaction, and the true recipient of all loan proceeds disbursed by banks pursuant to the real estate closing.
The various banks and mortgage lenders who issued loans related to the mortgage fraud scheme were deceived by the use of straw buyers, in addition to the foregoing false and fraudulent statements made by JOHNSON, TAGGART, and other co-conspirators in connection with the loan closings. As a result of the scheme, lenders issued several million dollars in loans, a substantial portion of which are in default or foreclosure.
JOHNSON, BARNES, and TKAC each admitted their role in the scheme and are awaiting sentencing. TAGGART was previously sentenced on April 17, 2013, to 36 months in prison, followed by three years of supervised release for his role in the offense. JOHNSON, BARNES, and TKAC are scheduled to be sentenced in October of 2013 by Chief Judge Dever in Raleigh.
BOWE was indicted on April 4, 2013 for, among other things, Conspiracy to Commit Wire and Bank Fraud. The indictment alleges that BOWE, a former mortgage broker operating through New Equity Mortgage, LLC and Anna Mortgages, LLC, participated in the scheme by falsifying various aspects of loan applications including, but not limited to, the amount and source of income and assets of borrowers, the existing debts of borrowers, and borrowers’ intent to occupy the property being purchased as the borrower’s primary residence. It is also alleged that BOWE and another promoted the scheme by supplying false verifications of deposit and false account statements purporting to show that borrowers held assets with “Mutual Southern Investments”, when in fact Mutual Southern Investments did not exist, and the assets were entirely fictitious. BOWE’s arraignment is presently scheduled for Chief Judge Dever’s August 5, 2013 term of court.
DEIAC was indicted on April 4, 2013 for Making False Statements to a Federally Insured Financial Institution, and Making Material False Statements to the FBI. The indictment alleges that DEIAC forged her husband’s name and credit information without his knowledge on a $1,950,000 loan from Wells Fargo Bank for her purchase of 1016 Clear Creek Farm Drive in Raleigh. The indictment further alleges that DEIAC falsely told the FBI that she believed she was leasing a building in New York when she executed loan and closing documents for the Clear Creek Farm property. DEIAC is scheduled to be arraigned on the charges against her at Chief Judge Dever’s August 5, 2013 term of court in Raleigh.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent unless and until proven guilty in court.
The investigation of this matter is ongoing and anyone with knowledge is encouraged to contact IRS-CI at (910) 254-5150. If you believe that you are a victim on connection with this investigation please contact the Victim/Witness Coordinator for the United States Attorney’s Office at (919) 856-4003.
The United States Attorney’s Office also announces that former Raleigh developer JAMES THOMAS WEBB, 52, of Miami, is presently scheduled to be sentenced in August of 2013 by Chief United States District Judge James C. Dever in Raleigh. WEBB was indicted on charges of Conspiracy to Commit Bank and Wire Fraud, in violation of Title 18, United States Code, Section 1349; 10 counts of Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2; 3 counts of Wire Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1343 and 2; and 36 counts of Making False Statements to Influence Banks on Loans and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1014 and 2. On March 18, 2013, WEBB pleaded guilty to the offense of Conspiracy to Commit Wire and Bank Fraud, the maximum punishment for which is 30 years in prison and up to $1,000,000 in fines, or twice the gain or loss arising from the offense, whichever is greater.
WEBB’s case relates to the pending cases against former closing attorney AMY ROBINSON, 35, of Rolesville, former real estate appraiser, JACKIE GALE WEAVER, 55, of West Hamlin, West Virginia, and former national appraisal instructor, LARRY MAX MCDANIEL, 71, of Vienna, West Virginia, who have each pleaded guilty to their roles in the scheme. ROBINSON faces up to five years in prison and a $250,000 fine on the charge of Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 371. WEAVER faces up to five years in prison and a $250,000 fine for Conspiring to Make False Statements on Loans in violation of Title 18, United States Code, Section 371. MCDANIEL faces up to 30 years in prison and $1 Million fine for Making False Statements on Loans and Aiding and Abetting, in violation of Title 18, United States Code, Section 1014 and 2.
WEBB’s indictment charges that between 2002 and 2006, WEBB operated various real estate companies, including Alpine Properties, LLC and Webb Builders, LLC for a profit. WEBB promised investors in multiple states quick, large, and safe financial gains by investing money with him. WEBB promised investors that he would use their money to purchase, renovate, and resell properties to first-time home buyers in various states, including North Carolina, Virginia, and Tennessee. WEBB caused investors to take out loans on properties that he and his companies had allegedly renovated.
The indictment further alleges that despite alleged philanthropic and humanitarian objectives, that WEBB carried out a fraud upon both the investors who gave cash to WEBB, and the banks and lenders who WEBB caused to disburse loan proceeds. According to the indictment, WEBB conspired with former attorney, ROBINSON, to falsify closing statements associated with the loan transactions. It is alleged that the closing statements falsified various facts, including the amount of money paid to WEBB on the transactions. WEBB is also alleged to have conspired with a former appraiser and national appraisal instructor, MCDANIEL, and his associate, WEAVER, to falsify appraisal reports that were given to banks and lenders in connection with investor loans. The appraisal reports falsely stated that MCDANIEL had physically viewed the properties, when in fact he had not. The indictment also alleges that the properties sold to investors and financed by banks were not always completed or in the condition represented in the appraisal reports.
During the course of the scheme, the indictment charges that WEBB lived lavishly, residing in a multi-million dollar mansion, driving expensive vehicles including a Bentley, traveling extensively, and otherwise paying himself handsomely. WEBB is alleged to have abruptly left North Carolina for Florida in 2004, where he continued to market his services under new company names.
According to the indictment, based upon WEBB’s statements and representations to investors, various individuals collectively invested millions of dollars with WEBB and his companies. Additionally, banks and lenders are alleged to have disbursed millions of dollars in loans, leaving investors holding millions in debt. The indictment alleges that WEBB left various neighborhoods in North Carolina and Virginia blighted with boarded up and dilapidated homes, many of which were ultimately demolished as uninhabitable.
MCDANIEL, 71, pleaded guilty in federal court on June 11, 2012, to Making False Statements to Federally Insured Financial Institutions, and Aiding and Abetting. WEAVER pleaded guilty in federal court on September 21, 2011, to Conspiracy to Make False Statements to Federally Insured Financial Institutions. ROBINSON, 35, pleaded guilty in federal court on May 3, 2010, to conspiracy to commit mail, wire, and bank fraud. Sentencing in the cases of MCDANIEL, WEAVER, and ROBINSON, is presently scheduled at the same time as WEBB’s sentencing during Chief Judge Dever’s August 2013 term of court.
The investigation of this matter is ongoing and anyone with knowledge is encouraged to contact the FBI at (704) 672-6100. If you believe that you are a victim on connection with this investigation please contact the Victim/Witness Coordinator for the United States Attorney’s Office at (919) 856-4003.
The United States Attorney also announces the upcoming sentencings in August of 2013 for the pending cases against developer JUSTIN LEE ROOKS, 31, of Loris, South Carolina; developer MICHAEL THOMAS BARTLETT, 46, of Myrtle Beach, South Carolina; closing attorney ROBERT HAROLD MELVILLE, JR., 50, of Lake Waccamaw; and ANTHONY MICHAEL TEW, 31, of Conway, South Carolina. On December 11, 2012, ROOKS and BARTLETT pled guilty to Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 1349. MELVILLE pled guilty to Conspiracy to Commit Bank and Wire Fraud, in violation of Title 18, United States Code, Section 1349. The charges against MELVILLE, ROOKS, and BARTLETT carry maximum penalties of 30 years in prison and up to $1 Million in fines or twice the gain or loss from the conspiracy, whichever is greater. On February 12, 2013, TEW pled guilty to Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 371, which carries a maximum term of imprisonment of 5 years and up to $250,000 in fines.
The charging documents in these cases collectively allege that between May of 2004 and August of 2008, ROOKS, BARTLETT, and others conspired to defraud banks and lenders in connection with the purchase, development, and resale of properties in Columbus, Brunswick, and New Hanover counties. It is further alleged that the conspirators solicited individuals at seminars in Raleigh and elsewhere to allow construction loans to be obtained in their names for the benefit of the conspirators in exchange for cash. The conspirators told the buyers that the buyers would not have to make a down payment or interest payments on the loans, and that the properties purchased in their names would be sold within twelve months. TEW and other conspirators also posted signs which included such representations as, “easy financing” and “no down payment required,” even though the buyer/borrowers were generally required to make down payments at the time of the closings. The buyers were told that if properties could not be sold in twelve months, the conspirators would buy the properties back.
The conspirators in fact enticed the buyers to participate in the transactions and engaged in various actions to make it appear to the banks and lenders that the buyers were qualified for the loans. The charges allege that TEW and other conspirators deposited money into the bank accounts of the buyers to make it appear that they had sufficient assets to conduct the transactions. To close the loans, the conspirators also referred the buyers to MELVILLE, who was at that time a North Carolina attorney who practiced real estate law. MELVILLE participated in the conspiracy by engaging in actions that made it appear to the banks and lenders that the buyers had given down payment money at the time of closing when, in fact, the buyers did not bring such money.
The banks and lenders who loaned funds to the buyers were not informed of the cash kickbacks to the buyers by the conspirators. The banks and lenders were also not informed that the buyers did not in fact have the cash to close the transactions, and that the down payment money, if any, was provided by the conspirators.
Ultimately, according to the charging documents, the conspirators were unable to sell many of the properties purchased in the names of the buyers. The buyers did not have the means to repay all of the loans obtained in the names of the buyers and, as a result, many of the loans went into default. The banks and lenders were forced to sell the properties at a substantial loss.
The investigation of this matter is ongoing and anyone with knowledge is encouraged to contact IRS Criminal Investigation at (910) 254-5143. If you believe that you are a victim on connection with this investigation please contact the Victim/Witness Coordinator for the United States Attorney’s Office at (919) 856-4003.
New Haven Man Sentenced to More Than Eight Years in Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JAMES JENKINS, also known as “Black,” 31, of New Haven, was sentenced yesterday by Senior United States District Judge Ellen Bree Burns in New Haven to 100 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine.
This matter stems from a joint law enforcement investigation conducted by the FBI New Haven Safe Streets Task Force, the DEA New Haven Task Force, the New Haven Police Department and the Hamden Police Department. Through the use of court-authorized wiretaps, investigating officers identified and dismantled a large drug-trafficking organization that was centered in the Newhallville section of New Haven and Hamden, and was responsible for the distribution of crack cocaine and cocaine throughout the Greater New Haven area.
According to court documents and statements made in court, from June through October 2010, JENKINS was intercepted repeatedly over a wiretap ordering distribution quantities of crack cocaine from other members of the drug trafficking organization. He then sold the drug to his own customer base for profit.
On January 28, 2013, JENKINS pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack cocaine”).
Forty-seven individuals have been charged in federal court with various narcotics offenses as a result of this investigation. All have been convicted.
This matter was investigated by the Federal Bureau of Investigation’s New Haven Safe Streets Task Force (composed of members of members of the New Haven, Ansonia, Milford, Hamden and East Haven Police Departments, and the Connecticut State Police and the Connecticut Department of Correction), the Drug Enforcement Administration’s New Haven Task Force (composed of members of the New Haven, West Haven, Meriden, Ansonia, Hamden and Branford Police Departments), along with substantial participation by members of the New Haven and Hamden Police Departments. The United States Marshals Service also has assisted the investigation.
The investigation was funded in significant part by the United States Attorney’s Office Organized Crime Drug Enforcement Task Force and supported by the Office’s Project Safe Neighborhoods and Anti-Gang programs.
This matter is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Mexican Citizen Convicted of Illegally Re-Entering the United StatesRead the Press Release
KNOXVILLE, Tenn. – On July 9, 2013, a federal jury in U.S. District Court for the Eastern District of Tennessee, at Knoxville, found Rigoberto Francisco-Reyes, a national and citizen of Mexico, guilty of being previously deported and re-entering the United States without permission. After the jury’s verdict was announced, Francisco-Reyes was remanded into federal custody by the Honorable Thomas Varlan, U.S. District Judge. Sentencing has been set for 2:00 p.m., Dec. 4, 2013.
Evidence at trial showed that Francisco-Reyes had been previously deported from the United States five times, and that he had several prior felony convictions for immigration offenses.
This case was investigated by the Bureau of Immigration and Customs Enforcement (ICE) in collaboration with the White Pine Police Department. Assistant U.S. Attorney Melissa M. Kirby represented the United States.
“This case is a prime example of ICE identifying and detaining a violent criminal and egregious immigration law violator who poses the greatest threat to public safety,” said Scott L. Sutterfield, acting field office director of ERO New Orleans. Sutterfield oversees ERO activities in Tennessee, Louisiana, Alabama, Arkansas and Mississippi.
Mercer Co. Man Indicted by A Federal Grand Jury for Child Pornography OffenseRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that a 60-year-old Mercer County man was indicted on July 9 by a federal grand jury sitting in Beckley for a child pornography offense. Johnny Richard Rowe, of Bluewell, W.Va., was charged with possession of child pornography. The single-count indictment alleges that on June 19, 2013, Rowe possessed hundreds of images and videos of child pornography on his computer.
Rowe faces up to 20 years in prison and a $250,000 fine if convicted.
The West Virginia Internet Crimes Against Children Task Force conducted the investigation. Assistant United States Attorney Lisa Johnston is in charge of the prosecution.
The indictment was brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Note: The charge contained in the indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
Click here to view a copy of the indictment
McLaughlin Man Pleads Guilty to Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that Ryan Soft, age 22, of McLaughlin, South Dakota, appeared before U.S. District Judge Roberto A. Lange on July 9, 2013, and pled guilty to Count I of the Indictment that charged him with Assault with a Dangerous Weapon.
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 $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an incident wherein on the evening of February 25 and into the early morning hours of February 26, 2013, Soft was at the house of some friends, drinking and socializing with the victim and others. Soft and another person got into a fight, when the victim intervened and began pushing/punching Soft in an effort to break up the fight. Eventually, Soft was sitting down in the corner of the room. The victim took a couple of steps back and Soft stood to his feet, then pulled a knife from his pocket and stabbed the victim in the stomach. The victim fell to the floor and then retreated to the kitchen.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Soft was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for September 23, 2013.
# # #Maryland Man Sentenced on Drug ChargesRead the Press Release
Jackson, Miss. – Ransel Keith Pryor, age 44, of Clinton, Maryland, was sentenced by U.S. District Judge Keith Starrett to serve 188 months in prison followed by five years of supervised release for possession with intent to distribute over five kilograms of cocaine hydrochloride, announced U.S. Attorney Gregory K. Davis. Pryor was also ordered to pay a fine of $17,500.00.
Pryor was charged as the result of a traffic stop on I-59 in Jones County, Mississippi, where he was found to be in possession of over five kilograms of cocaine hydrochloride.
This case was investigated by the Drug Enforcement Administration, Pearl Police Department, and Jones County Sheriff’s Department. It was prosecuted by Assistant United States Attorney Erin Chalk.
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
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(225) 334-4707
or e-mail it to:
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Maryland Man Pleads Guilty to Felony Charges in Broad Daylight Kidnapping and Assault-Defendant Abducted Girlfriend After High-Speed Chase-Read the Press Release
WASHINGTON – Christopher Devese, 22, of Capitol Heights, Md., has pled guilty to charges stemming from an incident in which he abducted his pregnant girlfriend from a gas station, robbed her and then assaulted her, U.S. Attorney Ronald C. Machen Jr. announced today.
Devese pled guilty on July 9, 2013, in the Superior Court of the District of Columbia, to charges of kidnapping, assault with a dangerous weapon, robbery, and felony contempt. The plea is contingent upon the approval of the Honorable John Ramsey Johnson, who scheduled sentencing for Sept. 13, 2013. If the court accepts the plea at the time of sentencing, Devese will be sentenced to a period of incarceration between four and seven years.
According to the government’s evidence, on April 27, 2013, at about 12:30 p.m., Devese chased his girlfriend, the victim, in a car from Capitol Heights, Md., into the District of Columbia, as she sped through red lights trying to get away from him. The victim, who had called 911 for help while being pursued by Devese, was finally cornered in a gas station parking lot in the 4900 block of South Dakota Avenue NE. Devese smashed the car window to get into the car and pulled his girlfriend out. He then put her into his car and drove her to an unknown alley in the District of Columbia, where he repeatedly assaulted her, including beating her in the stomach with his casted fist. During the assault, he also robbed the victim of her cell phone, which police recovered from him when he was arrested. Devese then drove the victim back to Capitol Heights, Md., where he assaulted her again before his mother came to the victim’s aid.
In announcing the plea, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department’s Sexual Assault Unit and the FBI/MPD Violent Crimes Task Force. He also praised those who handled the case for the U.S. Attorney’s Office, including Victim/Witness Advocate Lezlie Richardson, Paralegal Specialist D’Yvonne Key, and Intern Lucie Enns. Finally, he commended the efforts of Assistant U.S. Attorney Mervin A. Bourne, Jr., who investigated and indicted the case.
13-241Manhattan Business Owner Pleads Guilty in Manhattan Federal Court to Multi-Million Dollar Ponzi SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JASON KONIOR, the founder and manager of a number of related business entities in New York City, collectively referred to as “Absolute,” pled guilty today in Manhattan federal court in connection with his operation of a multi-million dollar Ponzi scheme in which he stole at least $2.9 million from small hedge fund investors and used the funds to pay off prior investors and to pay himself. KONIOR was originally charged in February 2013, and pled guilty today before U.S. District Judge Alvin K. Hellerstein.
Manhattan U.S. Attorney Preet Bharara said: “In the space of less than a year, Jason Konior managed to take at least $2.9 million that he had solicited from his investors, and then use it to settle up with previous investors and to pay himself. Today’s plea ensures that he will be punished for perpetrating this Ponzi scheme on his victims.”
According to the Information, statements made during today’s guilty plea proceeding, and a Complaint previously unsealed in Manhattan federal court:
From late 2011 through May 2012, KONIOR organized and managed a Ponzi scheme in which he misappropriated at least $2.9 million in funds he had solicited from hedge fund investors. He represented to these investors that Absolute would provide additional trading funds of up to nine times the investment they made in Absolute. As part of Absolute’s “first loss” investment program, KONIOR claimed that he would place the combined funds – the investors’ funds and the additional funds to be provided by Absolute – in a brokerage account designated by Absolute. According to KONIOR, the hedge fund investors would then be able to trade securities utilizing that brokerage account. Under the arrangement, the hedge funds would be responsible for trading losses, and they would share any profits with Absolute.
Instead of establishing brokerage accounts for the victim hedge funds, however, KONIOR misappropriated the funds they provided by paying redemptions to prior investors, making payments to himself, and paying various personal and business expenses. In e-mails, text messages, and telephone conversations, KONIOR pretended that he was establishing brokerage accounts for the three hedge fund investors, when he had already stolen their money. For example, in one case, after KONIOR repeatedly failed to set up a brokerage account for one of the hedge fund investors, the manager of the hedge fund investor sent him a text message stating, “I want my money back. What did you do to it anyway? Are you going to tell me or do you want the SEC to find out?” KONIOR responded with a text message stating, “[w]e have your funds in our acct. Where else would they be?” At the time KONIOR wrote the message, he had already used that hedge fund’s investment to pay off other investors and his own expenses.
KONIOR, 39, of New York, New York, pled guilty to one count of wire fraud, which carries a maximum potential penalty of 20 years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. He is scheduled to be sentenced by Judge Hellerstein on November 8, 2013 at 11:00 a.m.
Mr. Bharara praised the work of the Federal Bureau of Investigation and the Securities and Exchange Commission.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys John T. Zach and Jason H. Cowley are in charge of the prosecution.
U.S. v. Jason Konior Information
Man Sentenced for Vandalism in National ForestRead the Press Release
ASHEVILLE, N.C. – The U.S. Attorney’s Office, in conjunction with the U.S. Forest Service, today announced that Tyler Pace was sentenced to 90 days incarceration by United States Magistrate Judge Dennis Lee Howell for vandalizing parts of Max Patch, a scenic area in the Appalachian Ranger District, Pisgah National Forest North Carolina.
“This sentence sends a message to vandals that damaging our public lands will not be tolerated,” said United States Attorney Anne Tompkins.
Pace received the sentence during an appearance in U.S. District Court in Asheville on July 9, 2013. Prior to his sentencing hearing, Pace paid restitution for his share of the damage to Max Patch.
Pace was with a group of men who illegally drove vehicles in the Max Patch area in January 2013, causing more than $5,000 of damage to that scenic area. Pace facilitated that damage by tearing down the entrance gate and fence, thereby enabling the other persons to drive their vehicles into the protected area where vehicles are prohibited. Pace is 24 years old and a resident of Canton, North Carolina.
Max Patch sits next to the Tennessee state line in the Harmon Den area and is intersected by the Appalachian Trail. At 4,629 feet this bald offers 360-degree vistas of Mount Mitchell to the east and the Great Smoky Mountains to the southwest. An abundance of ferns and grasses blanket the area making it perfect for picnics.
The case was prosecuted by Assistant United States Attorney Richard Edwards.
Man from Mexico Pleads Guilty to Illegal Reentry After DeportationRead the Press Release
United States Attorney Brendan V. Johnson announced that Jesus Ochoa Aguirre, age 30, from Mexico, appeared before U.S. District Judge Roberto A. Lange on July 8, 2013, and pled guilty to the Indictment that charged him with Illegal Reentry after Deportation.
The maximum penalty upon conviction is 2 years of imprisonment, a $250,000 fine, or both; 1 year of supervised release; an additional year of supervised release upon revocation; and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an incident on or about September 24, 2012, when Ochoa Aguirre, a/k/a Felipe Cabrera Aguirre, an alien, was found in the United States in the District of South Dakota, after having been previously deported from the United States on or about April 16, 2010. Ochoa Aguirre did not obtain the consent of the Secretary of the United States Department of Homeland Security and the Attorney General of the United States to apply for admission into the United States.
The investigation was conducted by the Department of Homeland Security. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Ochoa Aguirre was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for August 28, 2013.
# # #Luray Man Sentenced to 108 Months for Defrauding HIV/Aids InvestorsRead the Press Release
RICHMOND, Va. – Michael F. Harris, 49, of Luray, Virginia, was sentenced to 108 month’s imprisonment today for his role in defrauding investors of more than $800,000 from a project aimed at purportedly developing a treatment for Human Immunodeficiency Virus infection/Acquired Immunodeficiency Syndrome (HIV/AIDS). Earlier this year, Harris was found guilty of wire fraud and mail fraud following a five-day jury trial.
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, made the announcement following the sentencing.
According to evidence presented at trial, Harris was the President and majority shareholder of M.F. Harris Research Inc. (MFH), a company incorporated under the laws of North Carolina in December 2003. He formed MFH to develop a treatment for HIV/AIDS. At various times in the past, Harris claimed to have discovered that the use of hyperbaric chambers to treat divers infected with HIV/AIDS for decompression sickness (also referred to as “the bends”) unexpectedly inhibited the virus. Harris claimed that MFH was devoted to pursuing a potential treatment regimen for HIV/AIDS using the hyperbaric chambers.
Evidence established that prior to October 2005 and continuing through at least July 2011, Harris solicited more than 80 investors for funds for MFH purportedly to use for: (a) obtaining MFH patents, both in the United States and abroad; (b) conducting human trials or assisting with advancing human trials using the treatment method; (c) continuing research on the treatment method; and (d) developing a treatment for HIV/AIDS. In connection with those investments, the defendant sold equity shares of MFH original issue stock and represented that invested funds would largely be used to pursue those objectives. From 2005 through 2011, Harris solicited most investors to pay $1 per share and, in many instances, he promised that MFH shares would be worth 10 to 20 times that amount once the patents were approved and clinical trials completed. On several occasions, Harris solicited investors with a sense of urgency and immediate need for funds to meet deadlines associated with the United States or foreign patent applications.
At trial, the United States established that Harris made material misrepresentations and omissions in connection with handling the investor funds, including: (a) misrepresentations regarding MFH’s actual and proposed ownership of the United States patent; (b) misrepresentations about the security of the investments; (c) affirmative acts of concealing financial information regarding MFH and the defendant’s use of MFH investment funds; and (d) omissions regarding Harris’s intended use of the MFH investment funds for his personal benefit. In reality, the defendant retained the United States patent in his own name and diverted the overwhelming majority of MFH investment funds for his personal us. Between October 2005 and July 2011, Harris received over $875,000 in funds from the investors for MFH. A financial analyst from the National White Collar Crime Center (NW3C) testified at trial that of this money Harris misappropriated over $800,000 for his own use, unrelated to the MFH areas identified by the defendant to the investors. He used those funds to, among other things: (a) spend more than $250,000 for the costs associated with the purchase, improvements, and utilities associated with the defendant’s primary residence in Luray, Virginia; (b) pay over $70,000 for his horse and farm expenses; (c) spend more than $25,000 at firearms stores; and (d) pay other personal expenses, including automobile, entertainment, restaurant, spa, and international travel to competitive kayaking events.
The investigation was led by the Fredericksburg office of the Federal Bureau of Investigation (FBI) and the Virginia State Corporation Commission (SCC). Those agencies received assistance in the financial investigation from the National White Collar Crime Center (NW3C). Assistant United States Attorney Michael Gill and Special Assistant United States Attorney and Counsel with the SCC Gauhar Naseem prosecuted the case on behalf of the United States.
This investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia. The task force is comprised of several federal and state agencies, including the Virginia Attorney General’s Office. The task force is an investigative arm of the President’s Financial Fraud Enforcement Task Force (FFETF), an interagency national task force.
The FFETF was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Local Merchants Indicted for Distribution of Designer DrugsRead the Press Release
Little Rock - Christopher R. Thyer,United States Attorney for the Eastern District of Arkansas, and William J. Bryant, Assistant Special Agent in Charge of the Little Rock District Office of the Drug Enforcement Administration (DEA), announced today that seven individuals were indicted by a federal grand jury in connection with Project Synergy, the largest-ever coordinated law enforcement strike against designer drugs. The indictment charges Amjad Kattom, age 36; Sahar Kattom, age 34; Yousef Qattoum, age 37;Abdul Aziz Farishta, age 50; Eassa Rawashdeh, age 23; Rodney Bryant, age 22; and Adam Kattoum, age 20, in Count 1 with conspiracy to distribute and possess with intent to distribute controlled substances and analogues of controlled substances, in violation of Title 21, United States Code, Section 846. Counts 2 and 3 charge Yousef Qattoum with distribution and possession with intent to distribute a controlled substance analogue. Count 4 charges Eassa Rawashdeh with distribution and possession with intent to distribute a controlled substance analogue. Count 5 charges Adam Kattoum with distribution and possession with intent to distribute a controlled substance and a controlled substance analogue. Count 6 charges Rodney Bryant with being a felon in possession of a firearm. Count 7 charges Amjad Kattom and Sahar Kattom with conspiracy to commit money laundering. Count 8 charges Yousef Qattoum and Abdul Aziz Farishta with conspiracy to commit money laundering. The indictment also seeks to forfeit approximately $17,338.40 in United States currency and real property of Amjad and Sahar Kattom.
The statutory penalty for conspiracy to distribute and possess with intent to distribute controlled substances and analogues of controlled substances and distribution and possession with intent to distribute controlled substances and analogues of controlled substances is not more than 20 years in prison, a $1,000,000 fine or both, with not less than three years of supervised release to follow. The statutory penalty for conspiracy to commit money laundering is not more than 20 years in prison, a fine of the greater of $500,000 or twice the value of the property involved in the transaction, or both, with not more than three years of supervised release to follow.
The investigation was conducted by the DEA - Tactical Diversion Squad composed of DEA Special Agents, DEA Diversion Investigators, and Task Force Officers from: Little Rock Police Department, Conway Police Department, Jefferson County Sheriff's Office, and Pine Bluff Police Department. Also taking part in the investigation was Homeland Security Investigations; the Internal Revenue Service - Criminal Investigation Division including Task Force Officers from Benton Police Department and Pulaski County Sheriff's Office; with the United States Postal Inspectors and the Little Rock Police Department. Assisting agencies were the Arkansas National Guard; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, and Firearms; the United States Secret Service; the Arkansas State Police and the Arkansas Tobacco Control Board.
A indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
For more information on this case, see previous news release at:
http://www.justice.gov/usao/are/news/2013/June/Synergy_kattom_complaint_DEA_062613.html
(Indictment )
Justice Department Settles Lawsuit Against Erie County, N.Y., over Disability DiscriminationRead the Press Release
The Justice Department today announced it filed a lawsuit in the U.S. District Court for the Western District of New York against Erie County, N.Y., alleging that the county discriminated against an employee with a disability. The department simultaneously filed a consent decree to resolve the claims. In its lawsuit, the department alleges that the county violated the Americans with Disabilities Act (ADA) by refusing to promote a maintenance worker with monocular vision because he did not have a commercial driver’s license. The Justice Department found that the employee was qualified for the promotion and that he could perform all the important job duties associated with the promotion. The department also found that there were other employees who did not have a commercial driver’s license who had been promoted to the position.
“The result of the county’s action was to deny a promotion to someone who should have received it,” said Eve L. Hill, Senior Counselor to the Assistant Attorney General for the Civil Rights Division. “The Justice Department is committed to removing these types of discriminatory barriers, and to ensuring equal employment opportunities for people with disabilities.”
The consent decree, which must be approved by the court, requires the county to pay the employee $22,486 in back pay and interest, offer him a promotion with remedial seniority, provide training on the ADA and file periodic reports with the Justice Department.
Title I of the ADA prohibits employers, such as Erie County, from discriminating against people on the basis of disability in various aspects of employment. These prohibitions include using qualification standards that screen out individuals with disabilities and that are not job-related and consistent with business necessity. The ADA also requires employers to provide reasonable accommodations to otherwise qualified individuals with disabilities, where such an accommodation does not pose an undue hardship.
Those interested in finding out more about the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Justice Department Issues Statement on U.S. District Court<br /> Ruling That Apple Violated Antitrust LawsRead the Press Release
Assistant Attorney General Bill Baer in charge of the Department of Justice’s Antitrust Division made the following statement today after the U.S. District Court for the Southern District of New York found that Apple Inc. violated Section 1 of the Sherman Act by conspiring to raise e-book prices and end e-book retailers’ freedom to compete on price:“This result is a victory for millions of consumers who choose to read books electronically. After carefully weighing the evidence, the court agreed with the Justice Department and 33 state attorneys general that executives at the highest levels of Apple orchestrated a conspiracy with five major publishers – Hachette, HarperCollins, Macmillan, Penguin and Simon & Schuster – to raise e-book prices. Through today’s court decision and previous settlements with five major publishers, consumers are again benefitting from retail price competition and paying less for their e-books.
“As the department’s litigation team established at trial, Apple executives hoped to ensure that its e-book business would be free from retail price competition, causing consumers throughout the country to pay higher prices for many e-books. The evidence showed that the prices of the conspiring publishers’ e-books increased by an average of 18 percent as a result of the collusive effort led by Apple.
“Companies cannot ignore the antitrust laws when they believe it is in their economic self-interest to do so. This decision by the court is a critical step in undoing the harm caused by Apple’s illegal actions.
“I am proud of the outstanding work done by the trial team. The Antitrust Division will continue to vigorously protect competition and enforce the antitrust laws in this important business, and in other industries that affect the everyday lives of consumers.”Background
On April 11, 2012, the department filed a civil antitrust lawsuit in the U.S. District Court for the Southern District of New York against Apple, Hachette Book Group (USA), HarperCollins Publishers L.L.C., Holtzbrinck Publishers LLC, which does business as Macmillan, Penguin Group (USA) Inc. and Simon & Schuster Inc., for conspiring to end e-book retailers' freedom to compete on price by taking control of pricing from e-book retailers and substantially increasing the prices that consumers paid for e-books.
At the same time that it filed the lawsuit, the department reached settlements with three of the publishers – Hachette, HarperCollins and Simon & Schuster. Those settlements were approved by the court in September 2012. The department settled with Penguin on Dec. 18, 2012, and with Macmillan on Feb. 8, 2013. The Penguin settlement was approved by the court in May 2013. Final approval of the Macmillan settlement is pending before the court. Under the settlements, each publisher was required to terminate agreements that prevented e-book retailers from lowering the prices at which they sell e-books to consumers and to allow for retail price competition in renegotiated e-book distribution agreements.
The department’s trial against Apple, which was overseen by Judge Denise Cote, began on June 3, 2013. The trial lasted for three weeks, with closing arguments taking place on June 20, 2013. The court has not yet scheduled a hearing to address the parties’ proposed remedies.Justice Department Distributes More Than $3.4 Million to Local Police and Law EnforcementRead the Press Release
The Justice Department this week distributed more than $3.4 million to local and state law enforcement agencies under its equitable sharing program, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
“This money will provide badly needed resources to police departments throughout Northeast Ohio. Departments and agencies in Cuyahoga, Summit, Stark and Lake County will all get money, in some cases hundreds of thousands of dollars,” Dettelbach said. “The community gets a double benefit when we take ill-gotten money from criminals and drug dealers and use it to support local police and law enforcement.”
The money came from seizures and forfeitures in three federal cases –a heroin trafficking organization led by Christopher Ugochukwu, the money laundering conviction of Paul Monea and a 2010 traffic stop in Twinsburg that resulted in a seizure of $677,660.
Under the equitable sharing formula, the Justice Department keeps 20 percent of the seized assets. The remaining money is divided among other participating agencies based on hours worked on the case. The U.S. Marshal administers the funds.
More than $2 million came from the Ugochukwu case. Most of that came from cash that was forfeited. Additionally, property was seized in Solon, Cleveland, Cleveland Heights and Shaker Heights. Twelve vehicles were also seized.
Ugochukwu is currently serving a 26-year prison sentence for leading an organization that brought heroin from Nigeria, Mexico and Colombia and sold it throughout Greater Cleveland. Authorities seized more than 20 kilograms of heroin in 2010, believed to be the largest heroin seizure in Ohio history. Twenty-three people were convicted of crimes for their roles in the operation.
The Northern Ohio Law Enforcement Task Force, which led the Ugochukwu investigation, received more than $1.7 million. The NOLETF is jointly led by the FBI and Cleveland police and focused on large-scale drug trafficking investigations.
That $1.7 million will be divided among the cities and agencies whose departments participated in the Ugochukwu investigation, including Cleveland, the Greater Cleveland Regional Transit Authority, Cleveland Heights, Euclid, Shaker Heights, the Cuyahoga County Sheriff’s Office, the Cleveland Metropolitan Housing Authority, University Heights and the Lake County Narcotics Agency.
The FBI and Cleveland, University Heights and Parma police departments will also receive forfeited vehicles.
More than $1.7 million came from the conviction of Paul Monea, who was sentenced to 13 years in prison for conspiracy and money laundering. Monea tried to sell the 43-carat “Golden Eye” diamond to an undercover FBI agent posing as a broker for a South American drug cartel.
The diamond was seized and auctioned following Monea’s conviction, as was $100,000.
More than $1.2 million from the Monea case will go to local and state police. The distribution of assets is as follows: the Canton Police Department, $749,525; the Alliance Police Department, $282,429; the Ohio Adult Parole Authority, $46,460; the Stark County Sheriff’s Office, $37,092; the Internal Revenue Service, $36,643; the Shaker Heights Police Department, $36,643; the Ohio National Counterdrug Task Force, $19,496; the Jackson Township Police Department, $12,289; the Massillon Police Department, $8,990, and the Perry Township Police Department, $3,853.
Finally, Khalilah Crumpler had an outstanding warrant in Mayfield Heights when she was pulled over on a traffic stop in Twinsburg in 2010. She was taken into custody and a search of her car revealed $677,660 – some of which was wrapped in dryer sheets, which is often used to mask the smell of drugs. A drug detection dog then alerted positively for the odor or illegal narcotics. That currency was forfeited because it constituted proceeds from drug trafficking activities and/or was used or intended to be used to facilitate drug trafficking.
Of that money, $432,947 went to the Twinsburg Police Department and $54,880 to the Summit County Prosecutor’s Office.
Jury Convicts Podiatrist, Psychologist and Pharmacist in Health Care Fraud CaseRead the Press Release
A podiatrist, a psychologist and a pharmacist were convicted today in federal court in Detroit, Michigan for health care fraud and controlled substance distribution, United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge Robert L. Corso, Drug Enforcement Administration, Detroit Division, Special Agent in Charge Robert D. Foley, III, Federal Bureau of Investigation and Lamont Pugh, III, Special Agent in Charge, Department of Health and Human Services Office of Inspector General ("HHS-OIG").
United States Attorney Barbara L. McQuade stated, “Law enforcement investigators in metro-Detroit are aggressively investigating health care fraud and detecting abuses by doctors and pharmacists. We hope that prosecutions like this one will deter medical professionals from stealing taxpayer funds intended for health care.”
Convicted were podiatrist Anmy Tran, 42, of Clinton Township, psychologist Sanyani Edwards, 34, of Southfield, and pharmacist Mitesh Patel, 39, of Troy. Defendants Tran and Edwards were convicted on all three of the counts with which they were charged, specifically conspiracies to commit health care fraud, to distribute controlled substances, and to pay or receive health care kickbacks. Defendant Patel was convicted of six of the seven counts with which he was charged, specifically health care fraud conspiracy, conspiracy to distribute controlled substances, and two substantive counts each of health care fraud and controlled substances distribution. Defendant Mitesh Patel was acquitted of conspiracy to pay or receive health care kickbacks.
The evidence presented during the three-week trial demonstrated that, from approximately January 2006 through August 2011, Canton Pharmacist Babubhai Patel owned and controlled over 20 pharmacies (termed “the Patel Pharmacies” at trial), which operated in and around Detroit, Michigan. The evidence also showed that Babubhai Patel’s model for turning a profit at his pharmacies was based upon large-scale health care fraud and the diversion of controlled substances. Babubhai Patel paid cash kickbacks and other things of value to physicians in exchange for those physicians writing prescriptions for expensive medications, without regard to medical necessity, that could be billed to Medicare, Medicaid, or a private insurer through one of the Patel Pharmacies. Physicians affiliated with Babubhai Patel would also write prescriptions for controlled substances for their patients, again regardless of medical necessity, which would then be filled at one of the Patel Pharmacies. These controlled substances were distributed to patients and patient recruiters as a kickback in exchange for the patients using a Patel Pharmacy. Pharmacists at the Patel Pharmacies would increase the pharmacies’ profits by billing insurers for medications never actually distributed to patients.
The evidence presented at trial showed that defendant Anmy Tran was one of the physicians to whom Babubhai Patel paid bribes and kickbacks in exchange for referrals of prescriptions. In exchange, Tran wrote numerous prescriptions for expensive medications, without regard to medical necessity, that could be filled at one of the Patel Pharmacies. Evidence presented at trial demonstrated that defendant Mitesh Patel, a pharmacist in Babubhai Patel’s organization, billed Medicare, Medicaid, and private insurers for expensive medications he never dispensed to patients. With respect to Sanyani Edwards, the evidence presented at trial showed that he offered and paid bribes and kickbacks to doctors, nurses, and assisted-living facility owners in exchange for referrals of prescriptions to the Patel Pharmacies. Edwards also worked with a corrupt psychiatrist to write fictitious prescriptions for patients, which could then be billed at a Patel Pharmacy.Defendants Tran, Edwards, and Mitesh Patel were three of 26 individuals who were charged in August, 2011, with offenses relating to their involvement with Babubhai Patel’s pharmacy network. All 26 of the original defendants have now been convicted of felonies arising out of their involvement with Babubhai Patel; 17 of those defendants entered guilty pleas, and nine, including the three defendants today, have been convicted after trial. Defendant Babubhai Patel was convicted at a trial in August 2012; he is serving a 17-year prison sentence. A superseding indictment charging 13 additional individuals was unsealed in March 2013; those defendants’ cases remain pending, with a trial date set for January 2014.
The case was prosecuted by Assistant United States Attorneys John K. Neal and Wayne F. Pratt.
Jury Convicts Inmate in Meth Trafficking ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – Juan Ledezma, 40, of Brownsville, has been convicted by a federal jury of drug trafficking in a conspiracy that involved gang leadership both inside and outside of the Texas prison system, United States Attorney Kenneth Magidson announced today. The jury returned its guilty verdict just a short time ago after two days of trial and one hour of deliberation.
Ledezma was one of the final defendants to be found guilty in a 13-count indictment that involved 31 others, 13 of whom are former McConnell Unit prison guards. Of the 32 defendants in the case, 29 have now been convicted and two are fugitives. The final defendant, Melissa Lozano, is set for trial on July 22. She is presumed innocent unless and until proven guilty through due process of law.
During the trial, the jury heard testimony that Ledezma acted as an intermediary between drug traffickers in south Texas and Mexico. He had connections to drug suppliers and, utilizing illegal cell phones smuggled in by corrupt guards, coordinated with other prisoners to organize drug deals inside and outside the prison. Jurors heard that prisoners had made phone calls to Ledezma while in the McConnell Unit of Texas Department of Criminal Justice (TDCJ). In these calls, Ledezma agreed to help arrange for six pounds of methamphetamine to be purchased in Corpus Christi and distributed in Arkansas. The buyers of the methamphetamine were to pay more than $20,000 per pound of the drug.
Ledezma and others stood to make thousands of dollars in profit from inside their prison cells on this one deal alone. The jury also heard that agents with Homeland Security Investigations (HSI) watched as a transfer of a sample of the drug took place in McAllen. The drug deal ultimately was unsuccessful, yet resulted in conspiracy charges for Ledezma and others. Numerous other inmates and gang members on the street have also pleaded guilty in this and prior related prosecutions, including Preston Mascorro, Jerome Aranda, Israel Plazola, Michael Ornelas, Jose Manuel Ledezma, Rudy Rodriguez, Anthony Torres, Ricky Alejandro, Martin Guardiola III and Stephen Ayala, resulting in lengthy federal sentences.
Ledezma faces up to life in prison and an $8 million fine. He will remain in custody pending sentencing.
These convictions were the result of an ongoing investigation dubbed Operation Prison Cell being conducted jointly by special agents with HSI, Internal revenue Service – Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and officers of the Texas Department of Criminal Justice – Office of Inspector General and the Corpus Christi Police Department Gang and Organized Crime Units.
The case is being prosecuted by Assistant United States Attorney Mark Patterson and Michael Hess.
Jackson Man Sentenced on Drug ChargesRead the Press Release
Jackson, Miss. – Willie Earl Culley, of Jackson, was sentenced to 57 months in prison followed by four years of supervised release for conspiracy to possess with intent to distribute cocaine, announced U. S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen. He was also ordered to pay a $1500 fine.
Culley was indicted in connection with “Operation Paperchase”, an extensive investigation targeting illegal narcotics distribution in the City of Jackson. He pled guilty in November, 2012.
This case was investigated by the Federal Bureau of Investigation with assistance from the Drug Enforcement Administration, U.S. Marshals Service, Gulf Coast HIDTA and Mississippi Bureau of Narcotics. It was prosecuted by Assistant United States Attorney Erin Chalk.
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
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Illegal Alien, Sergio Jose Nogueira, Pleads Guilty to Illegal Use of A Social Security Number and Making False Statements on A Passport ApplicationRead the Press Release
SERGIO JOSE NOGUEIRA, age 34, a citizen of Brazil, pled guilty in federal court today before U.S. District Judge Sarah S. Vance, to a two-count indictment charging him with illegal use of a Social Security number and making false statements on a passport application, announced U.S. Attorney Dana J. Boente.
According to the factual basis, on or about June 8, 2012, NOGUEIRA falsely represented that a Social Security number had been assigned to him by the Commissioner of Social Security with intent to deceive, for the purpose of obtaining a Louisiana driver’s license. NOGUEIRA also admitted to knowingly making false statements in a passport application by providing a false name, date of birth, and place of birth, to secure the issuance of a United States Passport for his own use on or about June 12, 2012. NOGUEIRA is illegally present in the United States.
NOGUEIRA faces a maximum term of imprisonment of 15 years, a fine of up to $500,000, and three years of supervision following release from imprisonment. Sentencing is scheduled for October 16, 2013 at 9:30 A.M.
This case was investigated by Untied States Immigration and Customs Enforcement, Enforcement and Removal Operations with the assistance of the United States Department of State, Diplomatic Security Service. The prosecution is being handled by Special Assistant United States Attorney Robert Weir.
(Download Factual Basis )
Illegal Alien Sentenced for Identity TheftRead the Press Release
Hattiesburg, Miss - Moises Perez-Torales, 28 of Vera Cruz, Mexico was sentenced by U.S. District Judge Keith Starrett to serve 24 months in federal prison followed by one year of supervised release for knowingly possessing and using a means of identification of another person, announced U.S. Attorney Gregory K. Davis.
Perez-Torales, who was in the United States illegally, used a stolen social security number to create false documents to represent himself as a U.S. citizen to obtain employment.
The case was investigated by Homeland Security Investigations with assistance from the Forrest County Sheriff’s Department. It was prosecuted by Assistant United States Attorney Annette Williams.
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Houston Man Handed Sentence in Area Armored Car RobberiesRead the Press Release
HOUSTON – Walter Keitric Freeman, 24, of Houston, has been ordered to federal prison following his conviction in the robbery and attempted robbery of two armored cars operating in and around Houston, United States Attorney Kenneth Magidson announced today. Freeman entered a plea of guilty Friday, April 12, 2013.
Today, U.S. District Judge Gray H. Miller handed Freeman a sentence of 57 months for his conviction of conspiracy to interfere with commerce by robbery as well as a consecutive sentence of 10 years for discharging of a firearm during the commission of a crime of violence. Following his total 177-month sentence, Freeman will be on supervised release for five years. Freeman will also be jointly and severally liable to pay back the money stolen from a Loomis Armored truck on Nov. 21, 2009.
Four others also charged in the case - Hendrick Dwayne Lynn, 30, Chad Eric Haywood, 24, and Corinthians Lachell Phillips, 28, all of Houston, and Allen Moore Jr., 46, of Dallas – had previously also entered guilty pleas for their roles in the crimes and will be sentenced in September 2013. Lynn and Haywood were both convicted of two counts of interference with commerce by robbery, while Lynn and Phillips also admitted to the conspiracy charge. Haywood also pleaded guilty to a count of discharging a firearm during a crime of violence as did Moore who was further convicted of interference with commerce by robbery.
Loomis Armored US Inc., who operated the trucks during the alleged robbery and robbery attempt, maintains offices throughout the United States and was engaged in the business of secured armored transport of United States currency in interstate commerce and in picking up and delivering United States currency to financial institutions and check cashing businesses, both of which are industries which affect interstate commerce.
Lynn, Haywood and Moore were charged with their involvement in the Aug. 7, 2009, attempted robbery of a Loomis armored truck at the Bank of America at 3704 Old Spanish Trail in Houston. Lynn drove to the location, at which time Haywood and Moore, who were armed with Glock pistols, jumped out and shot at the guard. The guard has since recovered. The guard had been filling an ATM machine, but it was already locked and no money was obtained.
The second incident occurred on Nov. 21, 2009, at which time another guard was shot. On that date, Lynn drove Freeman and Haywood to Senor Check Cashing Store #2 located at 5950 S. Gessner Rd. in Houston. Freeman fired his pistol and shot in the direction of the guard. The guard was hit, but survived. On that same date, Phillips drove a second vehicle to the Gessner location and, following the robbery, switched vehicles with Haywood, Freeman and Lynn.
Phillips has been permitted to remain on bond, while the others have been and will remain in custody pending further criminal proceedings.
The case was investigated by the FBI’s Bank Robbery Task Force and is being prosecuted by Assistant United States Attorney Jennie Basile.Hollygrove Gang Member, Norman Ratcliff, Pleads Guilty to Federal Rico, Drug, and Murder ChargesRead the Press Release
NORMAN RATCLIFF, aka “Turk,” 21, a resident of New Orleans, pled guilty today in federal court to various federal violations stemming from a 34 count second superseding indictment. RATCLIFF and several of his associates were charged with participating in a violent drug gang that operated in the Holly Grove area of the City of New Orleans.
RATCLIFF pled guilty to RICO conspiracy and conspiracy to distribute 28 grams or more of crack cocaine. He also pled to the illegal use of a firearm during and in relation to a drug trafficking crime and/or crime of violence in connection with the murder of Eula May Ivey.
RATCLIFF could be sentenced to life in prison and is also subject to a sentence of five to forty years as to the crack cocaine count. He is also faces a fine of up to $5,000,000. Sentencing is scheduled for October 2, 2013.
In November of 2012, a Federal Grand Jury returned a 34-count indictment charging Walter Conley, aka “Ike Neezy;” Tyronne Stevenson, aka “Duke;” Theron Golston, aka “Thema;” Bernell Williams, aka “Bussy,” aka “A-Boogie;” and Mark Glenn with participating in a RICO conspiracy, drug conspiracy, firearms conspiracy, and several substantive acts of violence.
These defendants and others were members and associates of a criminal enterprise which operated in an area of the City that historically encompassed the Hollygrove area of New Orleans, Louisiana. The boundaries of the area include South Carrollton Avenue, Earhart Boulevard, Interstate 10, and the Jefferson Parish line.
RATCLIFF is the sixth defendant in this case to plead guilty.
Co-defendant Carey Jones also pled guilty to a life sentence for his participation in the RICO conspiracy, two separate non-fatal shootings, and for his participation in the murder of Ms. Eula May Ivey.
Co-defendant Bernell Williams pled guilty to participating in the RICO conspiracy, drug conspiracy, gun conspiracy, and to his involvement in two separate non-fatal shootings. He will face a sentence of 25 to 30 years in prison.
Co-defendant Ryan Carroll pled guilty to participating in the RICO conspiracy and to discharging a firearm during a drug trafficking crime and a crime of violence. He faces a sentence of 10 years to life.
Co-defendant China Stewart pled guilty to possession with the intent to distribute crack cocaine and will face a maximum sentence of five years.
Co-defendant Theron Golston recently pled guilty to a life sentence for his participation in the RICO conspiracy, two separate non-fatal shootings, and for his participation in the murder of Ms. Eula May Ivey.
The remaining defendants, Tyronne Stevenson, Mark Glenn, and Walter Conley are scheduled to stand trial on September 23, 2013. All are presumed innocent until proven guilty at trial.
The Multi-Agency Gang Unit is an N.O.P.D. led division which includes federal agents from A.T.F., D.E.A., F.B.I., and the U.S. Marshal’s Service, as well as participants from the Orleans Parish Sheriff’s Office, The Louisiana State Police, State Probation and Parole, and the New Orleans District Attorney’s Office.
The case is being prosecuted by Assistant United States Maurice E. Landrieu, Jr.
(Download Factual Basis )
Harvey Man, Jermaine Hudson, Sentenced for Rico and Federal Controlled Substances Acts ViolationsRead the Press Release
JERMAINE HUDSON, age 25, of Harvey, Louisiana was sentenced today before U.S. District Judge Lance M. Africk after pleading guilty to Violations of the Racketeer Influenced Corrupt Organization and the Federal Controlled Substances Acts, announced U.S. Attorney Dana J. Boente.
HUDSON was sentenced to 27 years (324 months) imprisonment. In addition to the term of imprisonment, Judge Africk ordered that HUDSON be placed on 10 years of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should the violate any terms of the supervised release
This case arose out of a joint investigation by FBI, ATF, and the Jefferson Parish Sheriff’s Office. This investigation targeted an area which exhibited a disproportionate amount of violent crimes and narcotics trafficking. During the course of the investigation, specific individuals were identified as the main perpetrators of many of the violent acts and much of the narcotics distribution. Federal and local law enforcement officers interviewed witnesses, confidential informants, as well as state defendants, relative to the targeted individuals. It was revealed that a group of individuals operated in various areas of Harvey Louisiana, specifically the neighborhoods known as Scottsdale and Haydel. This group controlled these areas for their narcotics distribution activities through violence and through threats of violence, to include murder, attempted murder, obstruction and assaults. They were referred to as the Harvey Hustlers and/or Murder Squad.
The “Murder Squad,” or “MS,” was a faction of the Harvey Hustlers composed primarily of individuals residing in the Harvey, Louisiana area of Jefferson Parish, Louisiana. While they primarily operated on the Westbank of Jefferson Parish, members conducted business in other parts of the Eastern District of Louisiana. The “Harvey Hustlers” also referred to as “HH” originated in the Harvey area in the mid-1980s. Members of the organization “hustled” meaning they distributed illegal narcotics. The original goal of the Harvey Hustlers was to make money from sales of illegal narcotics.
The case was investigated by the Bureau of Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco and Firearms, and the Jefferson Parish Sheriff’s Office. The case was being prosecuted by Assistant United States Attorneys Duane A. Evans and Bill McSherry.
Fort Pierre Man Sentenced for Failure to AppearRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Pierre, South Dakota, man convicted of Failure to Appear was sentenced on July 8, 2013, by U.S. District Judge Roberto A. Lange.
Brent Flood, age 24, was sentenced to 4 months of imprisonment followed by 4 months at a re-entry center, 1 year of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. The custodial sentence will be served consecutively to a separate sentence for Possession of a Controlled Substance.
Flood was indicted by a federal grand jury on February 13, 2013. The charge stems from an incident wherein Flood, who was indicted by a federal grand Jury in September 2012 for two counts of the felony offense of Distribution of a Controlled Substance, did not show up for his change of plea scheduled for January 22, 2013. Flood knew he was required to appear for this proceeding, but failed to appear as directed. He was later apprehended.
The investigation was conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Flood was immediately turned over to the custody of the U.S. Marshals Service.
# # #Former Warrior Bank Employee Sentenced to 27 Months in Prison for EmbezzlementRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Hayden woman to more than two years in prison for embezzling from the Warrior bank where she worked, announced U.S. Attorney Joyce White Vance and U.S. Secret Service Special Agent in Charge Roy Sexton.
U.S. District Judge James H. Hancock sentenced FRANCES DUCKWORTH, 51, to 27 months in prison for embezzling from Superior Bank and its successors between November 2009 and August 2012. Duckworth worked as head teller at the Warrior bank branch during that time. The bank is now Cadence Bank. Duckworth must forfeit $202,994 to the government as proceeds of illegal activity. She also must pay the same amount in restitution to the victim and serve five years of supervised release following completion of her prison term.
Duckworth pleaded guilty to the embezzlement in March. According to her plea agreement with the government, Duckworth skimmed about $94,994 from deposit transactions between November 2009 and April 2011 at Superior Bank. After the bank became Cadence Bank, Duckworth took about $107,999 from deposit transactions between April 2011 and August 2012.
The Secret Service investigated the case, which Assistant U.S. Attorney Henry Cornelius prosecuted.
Former U.S. Army Reserve Captain Pleads Guilty<br /> in Nevada to Bribery SchemeRead the Press Release
A former U.S. Army Reserve captain pleaded guilty today to accepting more than $90,000 in bribes from contractors while he was deployed to Iraq, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Daniel G. Bogden of the District of Nevada.
Edward William Knotts III, 51, of Gibbon, Neb., pleaded guilty before U.S. District Judge James Mahan in the District of Nevada to a criminal information charging him with one count of bribery. He faces a maximum penalty of 15 years in prison when he is sentenced on Oct. 8, 2013.
According to court documents, from December 2005 until December 2007, Knotts was stationed at Camp Buehring, Kuwait, as a contracting officer’s representative for contracts between the U.S. Army and local contractors to provide services to support the operations at Camp Buehring and another U.S. camp in Kuwait.
In November 2006, Knotts entered into an agreement with a Kuwait-based corporation to receive a monthly fee from the corporation in return for providing confidential bidding information about U.S. Army contracts. Between November 2006 and November 2007, the corporation paid him approximately $31,500 in cash. In June 2007, a representative of the corporation paid Knotts $40,000 at a hotel room in Las Vegas in return for his promise to provide confidential bid information and in anticipation of the corporation hiring him. Knotts received another similar cash payment of $20,000 in August 2008 in a different Las Vegas hotel.
This case was investigated by the Special Inspector General for Iraq Reconstruction, Defense Criminal Investigative Service and U.S. Army Criminal Investigation Command. The case is being prosecuted by Director of Procurement Fraud Litigation Catherine Votaw and Trial Attorney Brian Young of the Criminal Division’s Fraud Section.
Former Preschool Director Pleads Guilty to Tax EvasionRead the Press Release
The Justice Department and the Internal Revenue Service (IRS) announced that Susan C. Valentine, a resident of Fairfax County, Va., pleaded guilty today to tax evasion.
According to documents filed with the court, Valentine was the former director at the Epiphany Weekday School (EWS) in Alexandria, Va. From 2008 through 2010, Valentine received a salary and also took additional funds from EWS for herself and members of her family. Despite earning this income, Valentine did not file income tax returns or pay income taxes for 2008 through 2010. Moreover, as director, Valentine caused false payroll tax forms to be filed on behalf of ESW with the IRS.
Sentencing was scheduled by U.S. District Court Judge James Cacheris for Oct. 18, 2013. Valentine faces a maximum sentence of five years in prison, three years of supervised release, a $250,000 fine and a $100 special assessment. She has agreed to pay restitution to the IRS.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, commended the efforts of special agents of IRS–Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Melissa Siskind and Karen E. Kelly, who are prosecuting the case.
Former Kinloch Mayor Indicted for Lying on Employment RecordsRead the Press Release
St. Louis, MO - Former Kinloch Mayor KEITH CONWAY was indicted on federal charges of falsifying employment records while completing his original sentence at a St. Louis halfway house, the Dismas House.
According to the indictment, on May 1, 2013, the United States Bureau of Prisons transferred Conway from its prison facility at Marion, Illinois, to the Dismas House residential reentry center in St. Louis. The Bureau of Prisons contracts with Dismas House for the housing and supervision of inmates and retains jurisdiction and responsibility over those inmates until their ultimate release from Bureau of Prisons' custody upon completion of their sentence. As a resident of Dismas House, Conway was required to seek and obtain full-time employment and to submit paycheck stubs to verify that employment to the Dismas House Program Director. While a resident at Dismas House awaiting final release from the Bureau of Prisons, Conway falsely represented that he had obtained full-time employment and was permitted to leave the Dismas House premises during his purported work hours.
Conway was originally sentenced to 21 months in prison in November 2011 on charges of using Kinloch city funds to pay personal expenses, fund personal travel, purchase a Florida vacation condominium timeshare and attempting to influence Kinloch City officials to provide false information to federal law enforcement about the criminal charges pending against him.
Conway was indicted by a federal grand jury on four felony counts of filing false documents.
If convicted, each count carries a maximum penalty of 5 years and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation-Public Corruption Unit, including officers of the St. Louis County Police Department. Assistant United States Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Former Army Assistant Inspector General Charged with Fraud and Theft of U.S. Army Officers IdentitiesRead the Press Release
James Robert Jones, 42, of Woodlawn, Tennessee was indicted by a federal grand jury today in connection with a scheme to obtain fraudulent bank loans using the stolen identities of active duty and deployed U.S. Army officers, announced David Rivera, Acting United States Attorney for the Middle District of Tennessee.
The indictment charges Jones with aggravated identity theft, bank fraud, and making a false statement to a financial institution.
“This office continues to place a high priority on identity theft crimes,” said Acting United States Attorney David Rivera. “This defendant abused a position of trust and used his position to specifically target those who serve our country, including certain officers who were deployed overseas when he stole their identities. We will seek to hold him accountable for these crimes and for his unlawful attempts to cover them up.”
The indictment alleges that Jones, who was an Assistant Inspector General with the U.S. Army Office of Inspector General at Fort Campbell, abused his position to obtain personal identifying information, including Social Security numbers and dates of birth, of active duty U.S. Army officers, including officers who were deployed to Afghanistan. The indictment also charges Jones fraudulently obtained the personal identifying information of an enlisted soldier who had been killed in combat in Afghanistan and used the personal identifying information of the U.S. Army officers to apply for loans in the officers’ names and successfully obtained fraudulent loans from two financial institutions.
According to the indictment, when confronted by investigators, Jones attempted to conceal his role in this scheme by falsely accusing a deceased U.S. Army officer of planning the scheme. The indictment further alleges that Jones asked a colleague to delete information on his work computer in an effort to impede the ongoing investigation. In connection with this conduct, Jones is charged with obstructing justice and making false statements to investigators.
“The Secret Service remains committed to fighting this type of financial fraud by pursuing individuals who obtain fraudulent loans using stolen identities, especially when the identities belong to members of our armed services,” said Todd Hudson, Special Agent in Charge of the United States Secret Service - Nashville Field Office. “The indictment announced today illustrates how the combined efforts of the Secret Service and our military law enforcement partners help to protect our financial institutions from fraud.”If convicted, Jones faces up to 30 years in prison for the counts of bank fraud and making a false statement to a bank, as well as an additional two years for each count of aggravated identity theft. Jones also faces up to 20 years in prison for attempting to destroy records and 5 years for making false statements to investigators.
The case was investigated by the United States Secret Service and the U.S. Army Criminal Investigations Command. The United States is represented by Assistant U.S. Attorney William F. Abely.
An indictment is merely an accusation and is not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law.
Foreign National Pleads Guilty to Role in Drug Trafficking OrganizationRead the Press Release
Maria Elena Rico-Lopez, 32, a citizen of Mexico who most recently resided in St. Louis, Missouri, entered a plea of guilty on July 10, 2013, to Conspiracy to Distribute and Possess With the Intent to Distribute Cocaine, and Entry Into the United States Without Inspection, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Rico-Lopez had been charged on August 22, 2012, in an eleven count indictment charging a total of ten individuals with being members of a large drug trafficking organization. Rico-Lopez is currently scheduled to be sentenced on November 1, 2013, at which time she faces a potential sentence of 5-40 years in prison, followed by a term of supervised release of not less than four years, a fine of up to $5,000,000, and a $100 special assessment. Rico-Lopez also admitted the Forfeiture Allegation in the Indictment and agreed to forfeit $34,720.00 to the United States. Rico-Lopez admitted that she is a citizen of Mexico who is in the United States illegally. She agreed to the entry of a Judicial Order of Removal, which will require her to be deported following the service of her sentence.
According to the Stipulation of Facts which was filed with the Court at the time of the plea, the organization charged in the Indictment was responsible for importing cocaine from Mexico into the United States, where it was taken to Salt Lake City, Utah. From Salt Lake City, the cocaine was transported by members of the conspiracy to the St. Louis Metropolitan area where it was distributed by various members of the organization, including some who operated within the Southern District of Illinois. Proceeds for the sales of the cocaine were then transported back to the leaders of the conspiracy in Salt Lake City.
Of the nine individuals named in the indictment with Rico-Lopez, five others have entered pleas of guilty and have either been sentenced or are awaiting sentencing; two others have been arrested and are awaiting trial; two are fugitives. Those not yet convicted are presumed innocent because an indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
Evidence in support of the indictment in this case was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), U.S. Marshal Service, the Granite City Police Department, Fairview Heights Police Department, the Collinsville Police Department, the St. Louis Metropolitan Police Department, the St. Louis County (Missouri) Police Department, the St. Charles County (Missouri) Sheriff=s Department, and the Nebraska State Patrol. This case is assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Florida Attorney Charged with Laundering Purported Stock Fraud ProceedsRead the Press Release
BROOKLYN, NY - Michael J. Scaglione, Esq., 41, an attorney in Coral Gables, Florida, was arrested this morning on charges that he laundered over $750,000, which he believed were proceeds from a penny stock fraud scheme. The money was, in fact, provided to Scaglione by an undercover law enforcement agent who posed as a criminal stock promoter as part of a sting operation. Scaglione, who is a partner at Scaglione Law Firm, P.A., in Coral Gables, Florida, was arrested after he took possession of an additional $500,000 in cash that he agreed to launder.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Toni Weirauch, Special Agent in Charge, United States Internal Revenue Service, Criminal Investigation, New York (IRS).
According to the complaint unsealed this morning in the Eastern District of New York, Scaglione exploited his position as an attorney to launder money through an escrow account for an undercover law enforcement agent (“undercover agent”) who posed as a corrupt stock promoter. In his dealings with Scaglione, the undercover agent represented himself to be a middleman working with corrupt stock brokers who artificially inflated prices for worthless stock in exchange for high commissions. Scaglione agreed to launder what he believed were proceeds of this stock fraud through his attorney escrow account in order to hide that money from the United States Securities and Exchange Commission and the IRS. Scaglione then funneled over $750,000, including $88,000 in cash given to him in a Federal Express box in the lobby of a Miami Beach hotel, through the escrow account into the undercover agent’s bank account in Long Island, New York. Scaglione carefully structured the movement of these funds to avoid triggering financial reporting requirements. In exchange, Scaglione collected over $25,000 in fees. In recorded conversations, Scaglione assured the undercover agent that their conversations were “completely privileged” and that his money was “safe” with Scaglione. When the undercover agent explained to Scaglione that he did not “want to go to jail,” Scaglione stated to the undercover agent that the escrow account was “tight as can be.” Directly prior to his arrest this morning, at a hotel in Miami Beach, Florida, Scaglione accepted an additional $500,000 in cash from the undercover agent, which Scaglione believed to be proceeds from the penny stock fraud.
“As alleged in the complaint, Scaglione hid behind his license to practice law as he threw himself into the purported scheme to launder money. In so doing he crossed the line from attorney to defendant,” stated United States Attorney Lynch. “I would like to thank our partners at the FBI and the IRS for their swift action and effective work on this important investigation.”
FBI Assistant Director in Charge Venizelos stated, “As alleged, the defendant breached the code of ethics for his profession and flagrantly broke the law, in laundering what he believed to be the proceeds of criminal activity. Contrary to the counsel he gave, the attorney-client privilege is not a veil of secrecy to hide criminal conduct.”
IRS Special Agent in Charge Weirauch stated, “Criminal attempts to conceal reportable financial transactions from government agencies, including the Internal Revenue Service and the Securities and Exchange Commission, may appear to be victimless crimes to some. However, they erode our nation’s financial systems and ultimately harm the American public. In particular, the laundering of proceeds from illegitimate activities that are nevertheless taxable threatens our voluntary tax compliance system; failure to investigate and prosecute these types of crimes would erode public confidence.”
The defendant is scheduled to appear tomorrow before United States Magistrate Judge Alicia M. Otazo-Reyes at the United States Courthouse in Miami, Florida, for removal proceedings to the Eastern District of New York.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorney Jacquelyn M. Kasulis..
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.
The Defendant
Name: MICHAEL J. SCAGLIONE
Age: 41
Miami Springs, FloridaFinal Dedendent Pleads Guity in Family Drug Conspiracy which Sought to Cntrol Two City StreetRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Leo Mellerson pleaded guilty to conspiracy to distribute crack cocaine before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison, a $1,000,000 fine or both. Mellerson was one of nine defendants originally charged by federal prosecutors as part of a family run drug operation that sought to control narcotics activities on two City of Buffalo Streets. All defendants have now been convicted and are in jail awaiting sentencing.
"Today's conviction means more than the end of the Theresa Anderson drug trafficking organization,” said U.S. Attorney Hochul. "To the residents and businesses living and operating on the East Side of Buffalo, today’s development represents a chance to reclaim their neighborhood, restores their rights to live in peace and safety, and constitutes yet another success story in our continuing battle against crime in the City.”Assistant U.S. Attorney Melissa Marangola, who handled the case for the Government, stated that between 2000 and February 2012, the defendant was one of nine defendants who participated in a drug trafficking organization the members of which were all related to one other. The leader of the organization was Theresa Anderson, a grandmother who utilized her children and grandchildren, as well as their spouses and boyfriends, for the group’s narcotics trafficking activities.
The organization sought to control all drug sales occurring on Swinburne and Deshler Streets, Buffalo. In order to achieve a monopoly, Anderson threatened and intimidated rival narcotics traffickers, and purchased multiple houses in the area which were then used for the selling and storing of the illegal narcotics.
In February, 2012, Theresa Anderson, along with Mellerson, Dion Anderson, Melvin Calhoun, Toshia Hodge, Anquensha Hodge, Steven Butler, Wymiko Anderson, and Tajia Anderson were all arrested in a joint operation conducted by federal, State, and City police agencies. Multiple properties were also seized, along with more than $52,000 in U.S. Currency. All defendants were convicted via guilty pleas occurring over the past several weeks.
DEA Special Agent in Charge Brian R. Crowell stated, "The Anderson drug trafficking organization was a family run business responsible for spreading fear, intimidation and crack cocaine throughout the Buffalo area. Due to state, local and federal law enforcement partnership, Theresa Anderson, the matriarch of the drug distribution organization, has pled guilty marking the end of their threat to public safety."
As a result of her conviction, and in addition to facing a substantial term of imprisonment, Anderson will forfeit to the Government a total of 10 properties including houses on Deshler St., Empire St., Hutchinson Ave., and Swinburne St.. As it has done in several recent instances, the United States Attorney's Office will consider providing these properties to local not-for-profit organizations and community groups if such groups qualify under federal regulation. Any organization interested in potentially acquiring a forfeited property should contact the U.S. Attorney's Office at 716-843-5700.
U.S. Attorney Hochul concluded, “This case was somewhat unusual in that the criminal organization was controlled by a woman and grandmother who clearly knew better than to engage in activities which hurt so many. Thanks to both the convictions and the seizures of her properties, Anderson and her convicted family members will no longer have any effect upon our remaining community of good neighbors.”
The convictions are the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the New York State Police, under the direction of Major Michael Cerretto.Mellerson will be sentenced on October 24, 2013 at 12:00 p.m. before Judge Arcara.
Federal Grand Jury Indicts Nevada Native Arrested in Seattle with Stolen Truck, Weapons and Homemade ExplosivesRead the Press Release
A 22-year-old man who was arrested last week by University of Washington Police in a stolen truck with stolen firearms, body armor and gasoline incendiary devices, was charged federally by the grand jury this morning, announced U.S. Attorney Jenny A. Durkan. JUSTIN MILES JASPER, will make his initial appearance in U.S. District Court in Seattle at 1:30 on Thursday July 11, 2013. JASPER is charged with five counts: transportation of a stolen vehicle; possession of a stolen vehicle; possession of stolen firearms; possession of destructive devices; and possession of explosives during the commission of a felony.
JASPER was arrested on July 3, 2013 near the UW campus in Seattle. He was driving a 1998 Dodge Ram 2500 pick-up truck with Montana plates. The truck had been reported stolen by the owner in Butte, Montana. Inside the truck police found a Stevens Model 311A double-barrel 12-gauge shotgun, with no serial number, and a Mauser Model 1895 bolt-action rifle. Both guns had been stolen from the same owner as the truck. The truck also contained destructive devices commonly referred to as “Molotov cocktails.”
Four of the counts in the indictment have a maximum penalty of ten years in prison. Possession of explosives during the commission of a felony carries a mandatory minimum ten year sentence in addition to any other sentence imposed in the case.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI, the UW Police Department, and the Seattle Police Department. The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Federal Grand Jury in Fort Wayne Returns IndictmentRead the Press Release
FortWayne,IN - TheUnited States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictment on June 26, 2013:
Cheryl Green, 50, of Fort Wayne, Indiana, is charged in a two count Indictmentwithfalse statementsinapplicationof socialsecuritybenefitsandtheftofgovernmentpropertyboth occurring on or about November 2010 and continuing to on or about August 2012.This charge wasfiledasaresultofaninvestigationbytheSocialSecurityAdministrationandtheUnitedStates PostalInspectionService.ThiscasehasbeenassignedtoandwillbeprosecutedbyAssistant United States Attorney Lovita Morris King.
TheUnitedStatesAttorney'sOfficeemphasizedthatanIndictmentismerelyanallegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed willbedetermined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Erie Man Charged with Child Exploitation CrimesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
The three-count indictment named Todd Calvin Lapping, 39, as the sole defendant. According to the indictment presented to the court, Lapping produced images of a minor engaged in sexually explicit conduct and possessed computer images depicting minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 80 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Millcreek Police Department, the Federal Bureau of Investigation and the Pennsylvania State Police 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Eighteen Individuals Named in 48-Count Indictment on Cocaine and Heroin 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 Federal Grand Jury
CLARKSBURG, WEST VIRGINIA —United States Attorney William J. Ihlenfeld, II, announced that a Federal Grand Jury sitting in Clarksburg returned a 48-count Indictment charging:
DEVON JOHNSON a/k/a “TY,” age 25, of McKees Rocks, Pennsylvania; RAYSON BROWN a/k/a “RAY DALLAZ” a/k/a “TURTLE,” age 22, of West Homestead, Pennsylvania; GREGORY MORRIS a/k/a “KG” a/k/a “KILLERS,” age 30, of West Mifflin, Pennsylvania; CHARLES E. JEFFERSON, JR. a/k/a “LC,” age 25, of Westover, West Virginia; MAHMOUD FARES ABULABAN a/k/a “MAC,” age 24, of Morgantown, West Virginia; ANTHONY MICHAEL FATA a/k/a “HUBBA,” age 24, of Morgantown; JACOB WHITE, age 25; ERIC SNEED, age 24; BARTLEY JEFFERSON a/k/a “BART,” age 22, of Morgantown; CHRISTINA SHAFFER, age 27, of Morgantown; BRITTANY BOWER, age
26, of Morgantown; ANGELA NELSON, age 33; FARRAH ECHARD, age 24, of Reedsville, West Virginia; BEN PHARES, age 26, of Kingwood, West Virginia; GREG WILLIAMS, age
40; WRIGHT BOWEN, age 31; WILLIAM A. BLOSSER, age 29, of Morgantown; and, JASON HUNT, age 31, of Core, West Virginia, were charged with “Conspiracy to Distribute Heroin and Cocaine” from the Summer of 2010 to the Spring of 2013, in Monongalia County, West Virginia.BARTLEY JEFFERSON faces a total of seven counts; JOHNSON, MORRIS, CHARLES JEFFERSON, ABULABAN, WHITE, and BOWEN face a total of six counts; SNEED and BLOSSSER face a total of four counts; SHAFFER, BOWER, NELSON and PHARES face a total of three counts; and, BROWN, FATA, ECHARD, WILLIAMS and HUNT face a total of two counts.
In addition to the conspiracy charge, other charges include the distribution of heroin and cocaine and the distribution of heroin within 1,000 feet of West Virginia University, Brookhaven Elementary School, Tot Lot playground at Marjorie Gardens, Star City playground and West Virginia Junior College.
The U.S. Attorney’s Office is seeking to forfeit $1,551 in United States currency which constitutes proceeds obtained from the illegal activity.
Each defendant faces up to five to four years on the conspiracy charge; twenty years in prison on the distribution charges and up to forty years in prison on the sales that occurred near a protected location.
This case will be prosecuted by Assistant United States Attorney Zelda E. Wesley and was investigated by the West Virginia State Police-Bureau of Criminal Investigations.
In addition, the following indictments were also returned by the grand jury this week: JOHN GEORGE CHAMBERS, age 62, of Clarksburg, West Virginia, was named in
a one-count Indictment charging him with “Possession of Child Pornography on July 17, 2012,
in Harrison County. The Indictment also contains a Forfeiture Allegation wherein the United States seeks to forfeit the computer, hard drives and disks which were seized from CHAMBERS on July 17, 2012. If convicted, CHAMBERS faces up to 10 years imprisonment and a $250,000 fine. This case will be prosecuted by Assistant United States Attorney Zelda E. Wesley and was investigated by the Federal Bureau of Investigation.This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
FRANKLIN C. MOORE, age 43, of Precious, West Virginia, was named in a one-count Indictment charging him with “Felon in Possession of a Firearm” on November 3, 2013, in Taylor County. If convicted, BRANTLEY faces a maximum exposure of 10 years imprisonment and a fine of $250,000. The Indictment also contains a Forfeiture Allegation wherein the United States seeks to forfeit the firearm. This case will be prosecuted by Assistant United States Attorney Zelda E. Wesley and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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.
Edwardsville Resident Indicted on Child Pornography ChargeRead the Press Release
Christopher P. Hill, 54, of Edwardsville, IL, has been indicted by a federal grand jury for knowingly receiving child pornography, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The one-count indictment charges that from November 2011 to January 2013, Hill used a computer and a peer-to-peer file sharing software application knowingly to download thousands of child pornography images and videos. The crime carries a mandatory minimum five-year prison sentence and is punishable by as much as 20 years in prison, a $250,000 fine, and supervised release for life.
Hill made his initial appearance on the charge on Tuesday, July 9. He was arraigned and pled not guilty. Despite the United States seeking that Hill be held without bond pending trial, Hill was ordered released on a $20,000 unsecured bond with conditions that include electronic monitoring, no unsupervised contact with anyone under the age of 18, and no access to the internet. Trial is currently scheduled for September 9, 2013.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case is being investigated by agents of the United States Secret Service, the Edwardsville Police Department, the Greenville Police Department, the Illinois State Police, the Madison County Sheriff’s Department, and the FBI Cybercrime Task Force. Assistant United States Attorney Nathan D. Stump is prosecuting the case.
D’iberville Man Sentenced on Federal Gun ChargeRead the Press Release
Gulfport, Miss - Jarvis Romaine Bell, 33 of D’Iberville, Mississippi, was sentenced to 120 months in federal prison followed by three years of supervised release for possession of a firearm by a convicted felon, announced U.S. Attorney Gregory K. Davis. He was also ordered to pay a $5000 fine and forfeit a Springfield, 9mm pistol, model XDM9, and any ammunition.
Bell pled guilty to the charge on March 27, 2013.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Biloxi Police Department. It was prosecuted by Assistant U.S. Attorney Annette Williams.
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Durham Men Plead Guilty to Federal Firearm FeloniesRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court today JASON LEMAR MEDLYN, 31, of Durham, North Carolina and IRESHIA DONTE SUMMERS aka ERIC SUMMERS, 35, also of Durham, North Carolina pled guilty before United States Magistrate Judge Robert B. Jones, Jr. to several firearms related charges.
MEDLYN and SUMMERS bothpled guilty to one count each of Conspiracy, in violation of Title 18, United States Code, section 371; Possession of Firearms in a School Zone and aiding and abetting, in violation of Title 18, United States Code, sections 922(q)(2)(A) and 924 and 2; and Felon in Possession of a Firearm and Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924.
According to the investigation, on May 31, 2012, MEDLYN and SUMMERS broke into two residences in Granville County and stole, among other things, personal property, firearms and ammunition. The defendants were discovered while still at the second residence by a Granville County Sheriff’s Deputy responding to a call regarding a residential break in. Two males, later identified as MEDLYN and SUMMERS, jumped into a vehicle and sped away. The passenger in the fleeing vehicle fired shots at the pursuing deputy. A North Carolina State Highway Patrolman picked up the chase and the passenger also fired shots at the trooper.
During the chase the car hit mailboxes and stopped near an auto dealership and a garage. Three guns were found near the vehicle along with a stolen television, nooks, and jewelry. The defendants traveled through two school zones with firearms during the chase.
MEDLYN and SUMMERS face a maximum sentence of 240 months imprisonment along with three years of supervised release at sentencing. They are expected to be sentenced during the October 8, 2013 term of court by Senior United States District Judge Malcolm J. Howard.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Granville County Sheriff’s Office, the Durham Police Department, North Carolina Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney S. Katherine Burnette prosecuted the case.
Dominican Replublic Native Sentenced on Heroin Distribution ChargesRead the Press Release
Buffalo, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Elvis Espinosa, 46, of Buffalo, N.Y., who was convicted of conspiracy to distribute heroin, was sentenced to 60 months in prison by U.S. District Judge Richard J. Arcara. In addition, the defendant was ordered deported to the Dominican Republic after his sentence is completed.
Assistant U.S. Attorney Mary Clare Kane, who handled the case, stated that the defendant was arrested in August 2009 for his involvement in obtaining heroin from suppliers in New York City for re-distribution in Buffalo. Police made undercover drug purchases from Espinosa and his associates which led to the wiretapping of Espinosa’s cell phone conversations.
Espinosa was arrested along with eight others. All nine defendants have been convicted.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Region; and Special Agents of the New York State Police, under the direction of Joseph A. D'Amico, Superintendent.
Dade City Man Sentenced to Nineteen Years in Federal Prison for Armed Drug TraffickingRead the Press Release
Tampa, Florida - U.S. District Judge Elizabeth A. Kovachevich today sentenced Angel Martinez (34, Dade City) to nineteen years in federal prison for possessing methamphetamine with intent to distribute, and possessing firearms in furtherance of a drug trafficking crime. The sentence consists of 14 years in federal prison for the drug trafficking offense, followed by a five year consecutive sentence for the firearm charge. Martinez pleaded guilty on April 19, 2013.
According to court documents, on September 20, 2012, investigators executed a search warrant at Martinez's residence in Dade City. In Martinez's bedroom, investigators located twenty-nine grams of methamphetamine and three firearms. In a shed next to his house, investigators located more than 250 grams of methamphetamine, two hand guns, numerous rounds of ammunition, and five digital scales.
This case was investigated by the Drug Enforcement Administration and the Pasco County Sheriff’s Office as part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation's illegal drug supply. It was prosecuted by Assistant United States Attorneys Christopher F. Murray.
Co-Conspirators Indicted for Engaging in A Contracting Kickback SchemeRead the Press Release
NORFOLK, Va. – William Wellington Hooper, Jr., 46, of Virginia Beach, Virginia, and Harry Siegfried Rahn, Jr., 52, of San Francisco, California were indicted by a federal grand jury today on charges of conspiracy, providing and accepting kickbacks relating to government contracts, wire fraud, and false statements.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia made the announcement.
Hooper and Rahn face a maximum penalty of five years in prison for conspiracy, up to 10 years in prison on each count of illegal kickbacks, 20 years in prison on each count of wire fraud, and five years for false statements if convicted.
According to the indictment, between July 2010 and December 2012, William Hooper and Harry Rahn engaged in a contracting kickback scheme in which Rahn paid approximately $72,000 in monetary kickbacks to Hooper, much of which was related to military contracts. Hooper had been employed as a manager at Oceaneering International, Inc. (OII) of Chesapeake, Virginia since April 2010. In July 2010, the Naval Sea System Command (NAVSEA) awarded a cost-plus fixed fee contract to OII. Two weeks after the Navy contract award to OII, Rahn, a long-time acquaintance of Hooper, registered Rahn Systems International, LLC (RSI) in San Francisco, California, with Rahn serving as the owner. Shortly thereafter, Hooper began recommending purchase orders pertaining to the NAVSEA contract to the new subcontractor RSI. Between August and December 2011, Rahn mailed 21 U.S. Postal money orders totaling over $18,000 to Hooper and to Hooper’s landlord in Virginia Beach. By November 2011, Hooper left OII for unknown reasons and was hired as the as the Director of Fabrication for Steel America, a division of Colonna’s Shipyard, Inc. in Norfolk, Virginia. Once hired, Hooper once again began recommending subcontracts to RSI, primarily on Colonna’s commercial contracts. While at Steel America, RSI wired over $58,000 in 11 money wire transactions to a bank account Hooper opened in February 2012.
This case was investigated by the Defense Criminal Investigative Service (DCIS) and the Naval Criminal Investigative Service (NCIS). Assistant United States Attorney Stephen W. Haynie is prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
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.Christian County, Kentucky Resident Guilty of Possessing Multiple Firearms Including an Iraqi Machine GunRead the Press Release
PADUCAH, Ky. – A Christian County, Kentucky resident, pleaded guilty in United States District Court today, before Senior Judge Thomas B. Russell, to charges of possession of an unregistered firearm and possession of firearms by a person convicted of a misdemeanor crime of violence, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Lawrence E. Bussell, age 45, pleaded guilty today, to a three count indictment, returned by a grand jury meeting in Paducah, Kentucky, on October 9, 2012. Bussell was charged with the illegal possession of eleven firearms including an AR-15 type rifle and an Iraqi machine gun, which was not registered to him in the National Firearms Registration and Transfer Record.
Bussell had been previously convicted of spouse abuse on two occasions in the District Court of Christian County, Kentucky. He was convicted of a misdemeanor crime of domestic violence (Assault 4th Degree) on May 13, 1994 and again on August 24, 1994.
In court, Bussell admitted to knowingly possessing, on November 5, 2009, a Yankee Hill Machine Co., Model YHM-15f, .223 caliber semi-automatic AR-15 type rifle. Further, Bussell admitted to knowingly possessing, on August 7, 2012, eleven firearms including; a Smith and Wesson, Model M&P 15m .223 caliber rifle; a Remington Arms Model 1100, 12 gauge shotgun; a Leinad, Inc., Model MM11, 9mm rifle; a Leinad, Inc., Model DS, 410 gauge shotgun; a Roman/Cugir, Model GP WASR-10, 7.62 caliber rifle; a Taurus, Model 669, .357 caliber handgun; a Mossberg, Model 500, 12 gauge shotgun; a Remington Arms, Model 870, 12 gauge shotgun; a HiPoint, Model C9, 9mm handgun; and an Iraqi unknown make and model machine gun.
Bussell faces up to 30 years in prison, a maximum fine of $750,000 and supervised release of up to three years. Bussell forfeited to the United States all firearms and ammunition involved in the commission of the offenses in counts one through three of the indictment.
Bussell will be sentenced on October 10, 2013, at noon, in Paducah, by Senior Judge Russell.
This case is being prosecuted by Assistant United States Attorney James H. Barr and was investigated by the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Chillicothe Woman Indicted for Embezzling $4 Million from EmployerRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Chillicothe, Mo., woman has been indicted by a federal grand jury for a wire fraud scheme in which she embezzled nearly $4 million from her employer, Burdg, Dunham & Associates Construction Corp. in Hamilton, Mo.
Donna M. Preszler, 60, of Chillicothe, was charged in a 20-count indictment returned under seal by a federal grand jury on June 20, 2013. That indictment was unsealed and made public today upon Preszler’s arrest and initial court appearance.
Preszler was employed at Burdg, Dunham & Associates (BDA) from 2001 until June 2012, working as an accounting manager since 2004. BDA is a general contractor specializing in retail construction of malls, strip centers, family life centers, and other stand-alone projects. BDA serves customers in all 50 states, Puerto Rico and Canada, primarily building for national retail organizations.
The indictment alleges that Preszler embezzled $3,912,000 in a wire fraud scheme from June 30, 2006 through June 15, 2012. Preszler allegedly used her employer’s accounting software to create payroll data files that contained unauthorized false and fictitious payments to her bank accounts and others.
Preszler allegedly utilized her role as accounting manager to add false and fictitious non-taxable pay, such as expense reimbursements to herself. Over a six-year period, the indictment says, Preszler transferred approximately $3,912,000 in false and fictitious payments to herself and her family.
Preszler also added false and fictitious overtime hours and overtime pay to her weekly payroll, the indictment says. Preszler allegedly initiated approximately $76,000 in unauthorized overtime payments to herself from November 2004 through June 2006, which were subject to BDA withholding income taxes.
Preszler concealed her transfers by password protecting her payroll information, creating false and fictitious expense accounts and otherwise manipulating BDA’s payroll and accounting records.
The federal indictment charges Preszler with six counts of wire fraud and 14 counts of money laundering.
The indictment also contains a forfeiture allegation, which would require Preszler to forfeit to the government any property derived from the proceeds of the alleged violations, including a money judgment of $3,912,000, her residence on a 3.44-acre tract in Chillicothe as well as three other residential properties, two 14kt diamond rings, 10 vehicles (a 2007 Ford Taurus, a 2007 Mazda CX-7, a 2011 Nissan Versa, a 2010 Nissan 370Z, a 2007 Nissan Altima, a 2011 Ford F150, a 2010 Ford F150, a 2010 Ford Escape, a 2012 Ford Explorer and a 2012 Nissan Rogue), three 2011 Yamaha ATVs and several bank accounts and funeral trust accounts. Most of those items have been seized by law enforcement agents.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by the FBI.Burnsville Man Sentenced for Possessing A Stolen FirearmRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 21-year-old Burnsville man was sentenced for possessing a stolen .40-caliber, semi-automatic pistol. On July 9, 2013, United States District Court Judge Joan N. Ericksen sentenced Wesley Rayvon Johnson to 84 months in prison on one count of possessing a stolen firearm. Johnson was charged on February 21, 2013, and pleaded guilty on February 22, 2013.
In his plea agreement, Johnson admitted that on October 23, 2012, he possessed the loaded gun while walking in Minneapolis with three friends at approximately 4:10 p.m. Johnson also admitted he knew the pistol, which was tucked into his waist band, was stolen. When the four friends saw a police squad, one of them ran. When officers asked the remaining three to raise their hands into the air, Johnson admitted he didn’t raise his hands all the way in an attempt to hide the gun. In addition, Johnson admitted disobeying the officers when ordered to lie on the ground. The gun fell out of Johnson’s waist band following a struggle.
This case was the result of an investigation by the Minneapolis Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorneys Amber M. Brennan and LeeAnn K. Bell.Bristol Man Facing 10 Years in Prison on Federal Firearms ChargeRead the Press Release
PROVIDENCE, R.I. – A Bristol, R.I., man previously convicted in state court on multiple drug trafficking charges, admitted to a U.S. District Court judge in Providence today that in December 2012, he broke into a Portsmouth, R.I., home and stole more than a dozen firearms, five of which were recovered from his residence, announced United States Attorney Peter F. Neronha.
Appearing before U.S. District Court Judge John J. McConnell, Jr., David Welch, 42, pleaded guilty as charged in a federal grand jury indictment to one count of being a felon in possession of firearms. According to a binding plea agreement filed in this matter and accepted by the court, Welch faces a sentence of 10 years in federal prison when he is sentenced on October 1, 2013.
At today’s change-of-plea hearing, Welch admitted to the court that he broke into a Portsmouth home on December 22, 2012, and stole more than a dozen firearms and other items. Welch admitted that five firearms, a revolver and four semi-automatic handguns, located by law enforcement in his bedroom during a court authorized search on December 27, 2012, were among the firearms stolen from the home in Portsmouth. Welch admitted to the court that he stole the firearms for the purpose of selling some or all of them to others.
Welch admitted to the court that prior to his arrest on December 27, 2012, he sold or transferred some of the stolen firearm to others. Two of those firearms have since been recovered by law enforcement.
An indictmentis merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Welch has been detained since his arrest.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by the Portsmouth, Bristol, Newport and North Kingstown Police Departments and agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Bridgeport Man Sentenced to Seven Years in Federal Prison for Illegally Possessing FirearmsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that AARON FREELOVE, 29, of Bridgeport, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 84 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms.
According to court documents and statements made in court, on July 9, 2012, an individual purchased marijuana from FREELOVE. During the sale, FREELOVE displayed two handguns. The next day, law enforcement officers executed a search warrant at FREELOVE’s residence and recovered a Glock 10mm pistol, which was loaded with 15 rounds of ammunition and had been reported stolen, and a Ruger 9mm pistol loaded with eight rounds of ammunition. The search also revealed approximately 220 grams of marijuana.
FREELOVE has been detained since his arrest on December 18, 2012. On April 17, 2013, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
FREELOVE’s criminal history includes multiple felony convictions.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bridgeport Police Department. The case was prosecuted by Assistant United States Attorney Rahul Kale.
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