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Wednesday 10 July 2013
Boston Area Pimp Charged with Murdering A Rival Pimp in the Bronx in Dispute Related to Criminal Prostitution BusinessRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Raymond W. Kelly, the Police Commissioner of the City of New York (“NYPD”), announced that SAMUEL L. WHITESIDE was presented today in Manhattan federal court on charges that he traveled interstate to commit murder to further his prostitution business. WHITESIDE was arrested in Rockford, Illinois on June 14, 2013, and initially presented in the Northern District of Illinois. He arrived in the Southern District of New York yesterday and was presented today before U.S. Magistrate Judge Debra Freeman.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Samuel Whiteside traveled to New York with the cold-blooded intent to murder a rival in the unlawful prostitution business. Thanks to the efforts of our law enforcement partners, he will now face justice in the Southern District of New York.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, a business dispute between two men ended with one brutally murdering the other. Given that the business in question was the exploitation of women and trading them like livestock, it is not surprising that a dispute would be resolved by violence. While not surprising, it is intolerable.”
NYPD Commissioner Raymond W. Kelly said: “I commend the detectives of the NYPD’s Bronx Homicide squad and their counterparts in the 47th Precinct for helping return this pimp to face federal prosecution for murder.”
According to the allegations in the Complaint filed in Manhattan federal court:
During the course of the evening of June 4, 2012, and early morning hours of June 5, 2012, WHITESIDE, a Boston area pimp, had an argument over the telephone with Victor Martino (the “Victim”). The Victim, who at the time was staying at the Metro Motel in the Bronx, New York, was also a pimp, and the argument between WHITESIDE and the Victim related to their respective prostitution businesses.
Specifically, WHITESIDE and the Victim had a dispute about a woman who had worked for WHITESIDE as a prostitute. WHITESIDE believed that the Victim owed WHITESIDE money related to that woman, who had been traded and sold between WHITESIDE and the Victim. During a telephone conversation that evening, the Victim told WHITESIDE that WHITESIDE could settle the dispute in person and provided WHITESIDE with the address of the Metro Motel.
During the course of that evening, WHITESIDE traveled from New England to the Metro Motel. When he arrived, WHITESIDE went to the motel room where the Victim was staying and attacked and stabbed the Victim with a knife, killing him.
WHITESIDE, 30, of Dorchester, Massachusetts, is charged with one count of traveling interstate to commit murder to further his prostitution business. He faces a maximum sentence of life in prison.
Mr. Bharara praised the investigative work of the FBI and NYPD, and stated that the investigation is ongoing.
This case is being prosecuted by the Office’s Violent Crimes Unit. Assistant United States Attorney Kan M. Nawaday is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Samuel Whiteside Complaint
Atlanta Business Owner Sentenced for Receiving Child PornographyRead the Press Release
Defendant Possessed Thousands of Sexually Explicit Images of Children
ATLANTA –Thomas Joseph Schloeder, who was the co-owner of the Atlanta business Brushstrokes, has been sentenced for receiving thousands of images and videos of child pornography on his home computer.
“Collecting images and videos showing the sexual abuse of children is a despicable act,” said United States Attorney Sally Quillian Yates. “Our continued work to prosecute and punish individuals who possess, receive and distribute child pornography should serve notice to those who may consider engaging in this behavior that it will not be tolerated.”
“There are few crimes more heinous than the sexual abuse of a child,” said Brock D. Nicholson, special agent in charge of HSI Atlanta. “Protecting our children from those who exploit them is a top priority for HSI. We will continue to work closely with our partners at the DeKalb County Police Department to investigate these crimes and bring child predators to justice.”
According to United States Attorney Yates, the criminal indictment, and information presented in court: In November 2012, a detective with the police department of DeKalb County, Ga., conducted an investigation of individuals using peer-to-peer technology to download child pornography and make it available to others. During that investigation, he determined that a computer located at Thomas Schloeder’s home had made available over 100 images of child pornography over the preceding months. On November 15, 2012, law enforcement officers executed a search warrant at his home and seized several computers and electronic storage devices. A subsequent forensic examination of those items revealed several thousand images and videos of child pornography, some of which contained depictions of minors being raped by adults and sex acts between minors and animals.
Schloeder, 47, of Brookhaven, Ga., was sentenced today to 8 years, 1 month in federal prison by United States District Judge Orinda D. Evans to be followed by a lifetime of supervised release. He was also ordered to pay a fine of $75,000. The defendant will be required to register as a sex offender when he is released from prison.
This case was investigated by Special Agents of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the DeKalb County Police Department.
Assistant United States Attorney Jill E. Steinberg is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Armed Career Criminal Sentenced to 15 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – A Providence man arrested in November 2011 when Providence Police discovered a loaded firearm and a bag of ammunition hidden among children’s toys in a bedroom in his residence was sentenced on Tuesday to 180 months in federal prison, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr
Henry Lee, 30, was arrested by members of the Providence Police Department Narcotics and Organized Crime Bureau on November 3, 2011, during an investigation into Lee’s firearm and drug activities. According to information presented to the court, detectives executed a court authorized search of Lee’s residence and seized a loaded .380 caliber handgun and a bag of ammunition discovered hidden in a rear bedroom inside a “Girl Gourmet” cupcake mixer box which was located among several toys in the bedroom.
In addition, several plastic bags containing various amounts of crack cocaine were discovered in a bureau drawer. A bullet proof vest was discovered in a kitchen closet.
United States Attorney Peter F. Neronha commented, “The fifteen years that the defendant will serve in federal prison is a very long time. He deserves every minute. What makes this defendant’s conduct particularly dangerous, beyond his armed drug-dealing, is his possession of a bullet-proof vest, which could have only one purpose – to cause as much harm as possible to others, while remaining in relative safety.”
Providence Police Chief Colonel Hugh T. Clements, Jr., added, “Firearms and drugs continue to be a danger in our community. With this outstanding arrest and significant sentencing of an Armed Career Criminal, we are sending a clear message that criminals will be prosecuted to the fullest extent of the law. This is another example of the positive working partnership between the Providence Police Department, ATF and the U.S. Attorney’s Office.”
Lee pleaded guilty in U.S. District Court on March 27, 2013, to one count each of being a felon in possession of a firearm, being a felon in possession of body armor and possession with intent to distribute cocaine base.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Lee to serve 5 years of supervised release upon completion of his prison sentence.
Lee was convicted previously in state court on two occasions on serious drug felonies and of having committed a violent felony.
The case was prosecuted by Assistant U.S. Attorney Ly T. Chin.
The matter was investigated by the Providence Police Department with the assistance of 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]Arlington Man Sentenced to More Than Three and One-Half Years for Conspiring to Fabricate False Grain Elevator Scale Tickets, Committing Bankruptcy Fraud, and Interfering with Internal Revenue LawsRead the Press Release
A north-Iowa man who conspired to fabricate grain elevator tickets, committed bankruptcy fraud, and impeded the Internal Revenue laws was sentenced on July 9, 2013, to more than three and one-half years in federal prison.
Michael Recker, age 47, from Arlington, Iowa, was convicted of one count of conspiring to fabricate false grain elevator scale tickets, one count of bankruptcy fraud, and one count of interfering with Internal Revenue laws.
At the plea hearing and in a written plea agreement, Recker admitted that in 2008 and 2009, he bribed an employee of a Northern Iowa grain elevator to create false and fictitious grain elevator scale tickets. During the conspiracy, the employee fabricated eight false grain elevator tickets, accepting thousands of dollars in bribes from Recker in exchange. The grain elevator paid Recker more than $20,000 based on the false grain elevator tickets. Recker also admitted that he had sold a combine at auction for approximately $50,000.00 prior to filing for bankruptcy protection in the United States Bankruptcy Court for the Northern District of Iowa. In bankruptcy documents, Recker did not disclose the proceeds still owed to him by the auction company and when questioned about the proceeds, Recker lied to the court, claiming he never owned the combine or had an interest in its proceeds. Finally, Recker admitted that he tried to obstruct or impede the administration of the Internal Revenue laws by trying to hide and conceal his taxable income by, among other ways, having the checks from the grain elevator fraud made payable to his then-girlfriend and passing them, and the bribes, through a bank account established in her name.
Recker was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Recker was sentenced to 46 months’ imprisonment. A special assessment of $300 was imposed, and he was ordered to make $26,267.24 in restitution to the grain company. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Recker was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
This case arose in part from work of the North Iowa Bankruptcy Fraud Task Force, which consists of the United States Attorney’s Office, the Office of the United States Bankruptcy Trustee, the Internal Revenue Service Criminal Investigation Division, and the Federal Bureau of Investigation.
The case was prosecuted by Assistant United States Attorney C.J. Williams and investigated by the Office of the United States Bankruptcy Trustee, the Internal Revenue Service Criminal Investigation Division, the United States Department of Agriculture Office of Inspector General, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-cr-2027-LRR.
Alton Man Pleads Guilty to Firearm OffenseRead the Press Release
On July 10, 2013, Robert L. Jones, a 29-year old Alton, Illinois, man pled guilty in federal district court, in East St. Louis, to unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Jones is scheduled for sentencing on October 11, 2013, at which at which time he faces a maximum potential sentence of 10 years in prison and a fine of up to $250,000, not more than 3 years of supervised release after his prison term, and a mandatory special assessment of $100. Jones agreed to forfeiture of the firearm.
Facts presented in court revealed that on September 14, 2012, a law enforcement officer in Alton, Illinois, observed individuals sitting in a parked vehicle at an apartment building close to midnight. The officer approached the vehicle, knocking on the driver’s door. As the driver opened his door, the officer spotted a clear plastic baggie containing 5.4 grams crack cocaine on the driver’s lap. A semi-automatic handgun was recovered from underneath the hood of the vehicle. The driver admitted to the firearm belonging to him. Prior to this incident, Jones had been convicted of a crime that was punishable by a term of imprisonment of more than one year.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Alton Police Department. This case is assigned to Assistant United States Attorney Daniel T. Kapsak for prosecution.
Alien, Narciso Ramos-lopez, Pleads Guilty to Illegal Use of A Social Security NumberRead the Press Release
NARCISO RAMOS-LOPEZ, age 41, a citizen of Mexico, pled guilty in federal court today before U. S. District Judge Sarah S. Vance to a one-count indictment charging him with illegal use of a Social Security number, announced U. S. Attorney Dana Boente.
According to the factual basis, on or about March 8, 2010, RAMOS, with intent to deceive and for the purpose of obtaining a Transportation Worker Identification Credential, falsely represented that a Social Security number had been assigned to him by the Commissioner of Social Security. RAMOS is unlawfully present in the United States.
RAMOS faces a maximum term of imprisonment of five years, a fine of $250,000 and three years of supervised release following any term of imprisonment. Sentencing is scheduled for October 16, 2013.
This investigation was conducted by U. S. Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE) with the assistance of the Louisiana State Police. The case is being prosecuted by Special Assistant U. S. Attorney Robert Weir.
(Download Factual Basis )
2013 School Safety ConferenceRead the Press Release
Safety in Our Schools: Education, Prevention, Management
July 16-18, 2013
Columbus Convention & Trade Center - Columbus, GeorgiaConference Agenda
Tuesday, July 16th
8:00 - 9:00 am Registration Registration Desk
9:00 - 9:30 am Welcome and Introductions Ballroom C
Michael J. Moore, United States Attorney Middle District of Georgia
Dr. Garry McGiboney, Georgia Department of Education
Director Charley English, Georgia Emergency Management Agency –
Homeland Security
9:30 - 11:15 am Terrorism: The Lone Wolf Threat Ballroom C Michael J. Moore, United States Attorney
Greg Armes, National Security Specialist
U.S. Attorney’s Office, Middle District of Georgia11:15 – 11:30 Carbon Monoxide Detection Update Ballroom C
Ted Miltiades, Director of Construction Codes & Research
Dee Leclair, Project Manager
Georgia Department of Community Affairs
11:30 – 12:30 pm Lunch (Provided) Ballrooms A & B
12:30 – 1:45 pm Breakout Sessions
The School Resource Officer’s Role Ballroom C
Karen Gray, Executive Director/Founder
Georgia Association of School Resource OfficersBus Safety Issues Foundry Room A
Garry Puetz, Director of Transportation
Forsyth County SchoolsBeslan, Russia School Terrorism Incident Foundry Room B
Greg Armes, National Security Specialist
United States Attorney’s Office, Middle District of Georgia
1:45 - 2:00 pm Break2:00 - 3:15 pm Breakout Sessions
Active Shooter Response for Law Enforcement Ballroom C
Sgt. Jon M. Posey
Georgia State Patrol
Active Shooter Response for K-12 Schools Foundry Room A
Anna Lumpkin, School Safety Coordinator
James Westbrook, School Safety Coordinator
Georgia Emergency Management Agency – Homeland SecurityPlan, Prepare, React: Foundry Room B
Active Shooter Response for Colleges/Universities
Steve Harris, Director of Security and Emergency Preparedness
The University of Georgia
3:15 - 3:30 pm Break3:30 - 4:45 pm Breakout Sessions
The School Resource Officer’s Role Ballroom C
Karen Gray, Executive Director/Founder
Georgia Association of School Resource OfficersBus Safety Issues Foundry Room A
Garry Puetz, Director of Transportation
Forsyth County SchoolsDisguised and Concealed Weapons in Schools Foundry Room B
Pete Golden, Emergency Operations Coordinator
The University of GeorgiaWednesday, July 17th
8:30 - 9:00 am Registration and Information Desk Open
9:00 - 9:30 am “Now Is the Time” Ballroom C David Esquith, Director - Office of Safe and Healthy Students
U.S. Department of Education9:30 - 11:30 am School Threat Assessments Ballroom C
ATSAIC Michael Sweazey
United States Secret Service
11:30 – 12:30 pm Lunch (provided) Ballrooms A&B
12:30 – 1:45 pm Breakout SessionsSafety and Security at Athletic Events Ballroom C
Dr. Ralph Swearngin, Executive Director
Georgia High School Athletic AssociationChild Sex Offenders Foundry Room A
SSA William Donaldson, Behavioral Analysis Unit 3
Federal Bureau of InvestigationLegal Issues in Schools Foundry Room B
Billy Mixon, Training Manager
Georgia Public Safety Training Center1:45 - 2:00 pm Break
2:00 - 3:15 pm Breakout Sessions
New Department of Education Ballroom C
Discipline Reporting System
Marilyn Watson, Program Manager
Jeff Hodges, Program Specialist
Dennis Kramer, Senior Research and Policy Analyst
Georgia Department of EducationChild Sex Offenders Foundry Room A
SSA William Donaldson, Behavioral Analysis Unit 3
Federal Bureau of InvestigationFBI Child Abduction Response Team Foundry Room B
S/A Joseph Fonseca
Federal Bureau of Investigation
3:15 - 3:30 pm Break3:30 - 4:45 pm Breakout Sessions
Safety and Security at Athletic Events Ballroom C
Dr. Ralph Swearngin, Executive Director
Georgia High School Athletic AssociationLegal Issues in Schools Foundry Room A
Billy Mixon, Training Manager
Georgia Public Safety Training CenterFBI Child Abduction Response Team Foundry Room B
S/A Joseph Fonseca
Federal Bureau of Investigation
Thursday, July 18th9:00 - 10:15 am Breakout Sessions
Understanding the Exercise Process Ballroom C
Tod Keys, Exercise Program Manager
Cory Bushway, Exercise Program Coordinator
Georgia Emergency Management Agency – Homeland SecurityDisguised and Concealed Weapons in Schools Foundry Room A
Pete Golden, Emergency Operations Coordinator
The University of GeorgiaEmergency Operation Plans for Schools Foundry Room B
Kristen Higgs, School Safety Coordinator
Danielle Graham, School Safety Coordinator
Georgia Emergency Management Agency – Homeland Security10:15 - 10:30 am Break
10:30 – 11:45 pm Understanding the Exercise Process Ballroom C
Tod Keys, Exercise Program Manager
Cory Bushway, Exercise Program Coordinator
Georgia Emergency Management Agency – Homeland SecurityBeslan, Russia School Terrorism Incident Foundry Room A
Greg Armes, National Security Specialist
United States Attorney’s Office, Middle District of Georgia
Emergency Operation Plans for Schools Foundry Room B
Kristen Higgs, School Safety Coordinator
Danielle Graham, School Safety Coordinator
Georgia Emergency Management Agency – Homeland Security
11:45 – 12:45 pm Lunch (Provided) Ballrooms A&B12:45 – 2:30 pm Newtown Massacre: Lessons Learned Ballroom C
Lt. J. Paul Vance
Commanding Officer, Public Information Office
Connecticut State Police2:30 – 3:00 pm Closing Remarks & Certificate Distribution
Additional IMPORTANT Conference Information
Breakout Sessions: Please be aware that seating in each of the rooms will be limited. If the session is already full, please attend a different session. Many breakouts will be offered twice.
Georgia P.O.S.T. Credit Hours: Law Enforcement attendees will receive 14 hours Georgia P.O.S.T. Credit. Your attendance at each session is expected in order to comply with U.S. Department of Justice expectations and sponsoring state regulations. Georgia P.O.S.T. training forms will be available in each session. You will need your Officer Key Number (OKEY #) in order to get credit for your hours.
Certified Emergency Management (CEM) Credit Hours: Anyone interested in receiving CEM credit hours can submit a copy of your certificate to GEMA training in order to obtain the hours.
Certificates of Training: Certificates will be available on Thursday afternoon.Evaluations: Please participate in critiquing this conference by completing the evaluation form attached and submitting it to us at the conclusion of the conference.
For questions and assistance, please see any of the conference planning team and staff, who will be wearing BLUE badges.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Tuesday 9 July 2013
Youth Outreach Coordinator Indicted for Distribution and Possession of Child PornographyRead the Press Release
ATLANTA – Kevin Hickey, formerly the Director of Parish Outreach for Life Teen International in Atlanta, Ga., has been arraigned on federal charges of distribution and possession of child pornography.
“This defendant collected and distributed highly graphic images portraying the sexual exploitation and abuse of young children all while being entrusted to protect, counsel, and serve children,” said United States Attorney Sally Quillian Yates.
“We expect adults working in positions of trust to serve as role models for our children and safeguard their welfare,” said Brock D. Nicholson, special agent in charge for HSI Atlanta. “HSI is particularly vigorous in pursuing these kinds of cases because our experience has shown that, in many instances, those who collect and distribute child pornography are also hands-on offenders.”
According to United States Attorney Yates, the criminal complaint, and information presented in court: Hickey was identified as an individual with a sexual interest in children and who collects and distributes child pornography. In June 2013, Hickey, using his online screen name “funguyatl77,” engaged in an online communication, monitored by federal agents, in which he stated that he was watching “perving vids” and offered to share child pornography. On June 3, 2013, Hickey transmitted a video showing two prepubescent males being sodomized by an adult male. Hickey further displayed photographs of children he took surreptitiously in public places and was heard gratifying himself sexually during the online conversation. A subsequent investigation by Homeland Security Investigations agents led them to Hickey and to Hickey’s home, where he maintained his computer and engaged in the collection and distribution of these pornographic images. Thousands of images of child exploitation have been located on Hickey’s electronic devices.
Hickey, 39, of Norcross, Ga., was indicted by a federal grand jury on July 1, 2013. Hickey has been detained. Distribution of child pornography carries a mandatory minimum sentence of five years and a statutory maximum of twenty years. Possession of child pornography carries a statutory maximum sentence of ten years. A conviction on either offense carries a term of supervised release from five years to life and a requirement that the defendant register as a sex offender. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case is being investigated by Special Agents of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant United States Attorney Jill E. Steinberg is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Woman Who Allegedly Mailed Threatening Letters to U.S. Supreme Court and Throughout New Jersey Arrested on Federal ChargeRead the Press Release
NEWARK, N.J. – An Irvington, N.J., woman was arrested at her home this morning by members of the FBI Joint Terrorism Task Force (JTTF) for allegedly mailing letters threatening bodily harm to the U.S. Supreme Court and recipients throughout New Jersey, U.S. Attorney Paul J. Fishman announced.
Karen Waller, 50, is charged in a federal criminal complaint with one count of mailing threatening communications. She is expected to appear to face the charge this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the criminal complaint unsealed today, Waller mailed more than 50 threatening letters in May and June 2013 to multiple entities and individuals, including a number in New Jersey. The recipients of those letters included the U.S. Supreme Court; the town hall in Woodbridge Township, N.J.; Rutgers University; an insurance company; and the Millburn Township, N.J., Police Department. The letters threatened to injure and kill unspecified individuals.
The charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents, detectives and investigators assigned to the JTTF, under the direction of FBI Special Agent in Charge Aaron T. Ford in Newark, with the investigation. The JTTF comprises law enforcement officers from numerous federal, state and local agencies throughout New Jersey.
The government is represented by Andrew Kogan, chief of the U.S. Attorney’s Office National Security Unit.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-278
Waller, Karen Complaint
Woman Pleads Guilty to Forging Her Nursing LicenseRead the Press Release
Defendant Worked as a Nurse for the U.S. Postal Service
ATLANTA - Fertina Brown, a former mail carrier, pleaded guilty to one count of making a false document by forging a license to work as a nurse with the United States Postal Service.
“Brown put people’s health and safety at risk – simply to earn a better wage,” said United States Attorney Sally Quillian Yates. “By presenting a forged nursing license, she defrauded the Postal Service and will now be held accountable for her greed.”“Fertina Brown reflects just a small percentage of employees who failed to uphold the trust and integrity placed in them. The U.S. Postal Service, Office of Inspector General takes these cases very serious and investigates them to the fullest extent of the law,” said Paul Bowman, Area Special Agent in Charge of the United States Postal Service, Office of Inspector General.
According to United States Attorney Yates, the charges and other information presented in court: In 2007, Brown was working for the United States Postal Service (USPS) as a mail carrier, when she applied for and ultimately obtained a nursing position in the Postal Service’s North Metro Distribution Center. In January 2011, the USPS requested a copy of Brown’s most recent nursing license because the previously-provided copy had an expiration date of January 31, 2011. On February 2, 2011, Brown presented the USPS with a State of Georgia nursing license that turned out to be forged. Based on an investigation, the USPS determined that Brown’s nursing register number belonged to an individual residing in Texas who was on active duty with the U.S. military. As a result of the investigation, Brown resigned from the Postal Service in June 2011. In total, Brown earned over $100,000 in additional income (versus what she would have made as a mail carrier).
On May 7, 2013, Brown, 44, of Henry County, Ga., was charged in a Criminal Information with one count of making a false document. Today she pleaded guilty to the information and could receive a maximum sentence of 5 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.Sentencing is scheduled for September 13, 2013, at 9:30 a.m. before United States District Judge William S. Duffey, Jr.
This case is being investigated by Agents of the United States Postal Service, Office of Inspector General.
Assistant United States Attorney Jeffrey W. Davis is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
White River Man Charged with Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that Anthony Black Wolf, age 25, of White River, South Dakota, appeared before U.S. District Judge Billy Roy Wilson on July 3, 2013, and pled guilty to Assaulting a Federal Officer. The maximum penalty upon conviction is 8 years in custody, a $250,000 fine, or both; 3 years of supervised release; and $100 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on March 3, 2013, when Black Wolf resisted arrest by striking an officer in the face and trying to remove the officer’s duty weapon from its holster.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date was set for September 23, 2013. The defendant was remanded to the custody of the U.S. Marshals pending sentencing.
####Wendy Silva Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on July 3, 2013, before U.S. District Judge Dana L. Christensen, WENDY SILVA, a 41-year-old resident of Missoula, was sentenced to a term of:
Probation: 3 years
Special Assessment: $100
Restitution: $6,347.14 to SSA and an amount to be determined later for
SNAP benefits.
SILVA was sentenced in connection with her guilty plea to theft of government money.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
SILVA fraudulently received Supplemental Security Income (SSI) to which she was not entitled from January 2002 until January 2012 by failing to report income from her personal business. The money she stole belonged to the United States Social Security Administration, an agency of the United States. The value of the money SILVA stole via SSI was approximately $6,347.14.
The investigation was a cooperative effort between the Social Security Administration - Office of Inspector General and the U.S. Department of Agriculture - Office of Inspector General.
Virginia Settlement Attorney Sentenced to Prison in Conspiracy to Fraudulently Obtain over $100 Million in Sba-backed LoansRead the Press Release
Attorney Used Her Law Firm and Settlement Company to Facilitate Fraudulent
Loan Closings
Baltimore, Maryland -U.S. District Judge William D. Quarles, Jr. sentenced Seung E. Oh, a/k/a Sandy Oh, age 44, of Great Falls, Virginia, today to 51 months in prison, followed by three years of supervised release, for conspiracy to commit bank fraud and money laundering, in connection with a scheme to fraudulently obtain business loans guaranteed by the Small Business Administration, with resulting losses of over $100 million. Judge Quarles also ordered that Oh pay a money judgment of $11,832,000, pay restitution of $3,593,432, and forfeit all the property involved in the offense.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to her plea agreement, Oh is an attorney with offices in Annandale, Virginia and the owner operator of Washington Settlement Group (WSG), a title company located in Annandale. In about 1998, Oh met Joon Park and his brother, Loren Park, who owned and operated Jade Capital, a loan brokerage company. Oh knew that Jade Capital specialized in securing loans for individuals interested in purchasing and refinancing small businesses in the Mid-Atlantic area, some of which were settled through Oh’s law firm and WSG. Oh knew that the Parks encouraged prospective borrowers using the services of Jade Capital to apply for business loans through the SBA’s Section 7(a) program, which guaranteed 75% - 90% of qualified loans made by banks and other commercial lending institutions. Under this program, the principals of the small business seeking the loan were required to invest a certain amount of their own money, called an equity injection, before they qualified for a loan. The banks and other lending institutions making the loan bore the risk of payment default only up to the percentage of the loan not guaranteed by the SBA.
Over the course of Oh’s relationship with Joon and Loren Park, and to foster more business with their company, Oh agreed to use her settlement company and law firm to facilitate loan closings for deals that would otherwise fail to meet the lending parameters of the banks making the loans, including banks authorized to lend under SBA’s Section 7(a) program. Oh helped the Parks misrepresent to the banks and to the SBA the true amount of money involved in the transactions and/or the true names of the parties taking part in the transactions.
To accomplish this, Oh sometimes agreed to “netting” a transaction, whereby the Parks would negotiate a sale price with the seller that was less than the price listed on the sales contract submitted to the bank, and/or they would increase the loan by the amount needed for the down payment. In so doing, they reduced the amount of money that the buyer actually had to inject into the deal and concealed that the buyer did not have sufficient equity to qualify for the loan. To conceal these arrangements, Oh completed the settlement sheets as if the buyer had made the required cash injection and the seller had received the full contract price.
Another way that Oh helped to facilitate the loan closing for Jade Capital was when she “fronted” the buyer’s cash injection. Oh temporarily loaned part of the buyer’s up-front payment by taking other people’s money out of the escrow accounts of either her law firm or her title company. Joon and Loren Park then paid back the fronted money after the settlement, usually from their share of the proceeds from that deal or a later one. As with the “netting” scheme, the settlement sheets and all other related documents for the “fronted” deal would falsely reflect that the buyer injected his own money into the transaction in accordance with the agreed upon financing terms established by the lending institution.
Joon Park, a/k/a “Joon Pak,” and “Joon Paik,” age 43, of Falls Church, Virginia, pleaded guilty and was sentenced to 188 months in prison. Judge Quarles also ordered Park to pay a money judgment of $91,449,700 and forfeit all the property involved in the offense. Nick Park, a/k/a Nochol Park, age 46, of McLean, Virginia, was sentenced to 33 months in prison; and Joo Hyuk “John” Lee, age 39, of Richmond, Virginia, and Sang Hyun Kim, age 35, of Fairfax, Virginia, were each sentenced to three years in prison, for conspiracy to commit bank fraud. Kim’s wife, In Jung Ham, age 30, also of Fairfax, was sentenced to a year and a day in prison, for her role in the scheme. Judge Quarles ordered Lee to pay restitution of $1,900,325 and ordered Ham to pay restitution of $216,472.92. Lee, Kim and Ham were also ordered to forfeit the proceeds of the scheme and pay money judgments of $18,764,900, $13,432,000 and $15,725,000, respectively.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
United States Attorney Rod J. Rosenstein thanked the SBA Office of Inspector General, U.S. Postal Inspection Service and FBI for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Leo J. Wise and Martin J. Clarke, who prosecuted the case.
U.S. Attorney's Statewide Civil Rights Symposium Set for Aug. 9, 2013 at Johnson County Community CollegeRead the Press Release
KANSAS CITY, KAN. – A Wichita historian and author of an awarding-winning book on the civil rights movement in the Midwest will be the featured speaker at the U.S. Attorney’s third annual statewide Civil Rights Symposium Aug. 9 at Johnson County Community College in Overland Park, U.S. Attorney Barry Grissom said today.
Gretchen Eick Ph.D., professor emeritus of history at Friends University, will draw upon her book, “Dissent in Wichita: The Civil Rights Movement in the Midwest, 1954-1972,” when she speaks. Through protests such as the sit-in at the Dockum Drugstore in Wichita in 1958, civil rights advocates applied pressure leading up to the landmark Civil Rights Act of 1964.
Eick will be one of several speakers during the free, day-long event focusing on federal civil rights enforcement in Kansas. Grissom said this is the third year in a row his office has sponsored the symposium.
“This event is an opportunity for us to rededicate ourselves to the continuing struggle for equal rights, equal opportunity and equal justice,” said U.S. Attorney Barry Grissom. “We are inspired by the example of those before us who spoke out despite difficulty and danger.”
The U.S. Department of Justice is responsible for upholding the civil and constitutional rights of all Americans. It enforces federal statutes prohibiting discrimination on the basis of race, color, sex, disability, religion, familial status and national origin.
Other presentations during the symposium will include a panel discussion on civil rights with panelists U.S. Attorney Barry Grissom; Gary Brunk, executive director of the ACLU of Kansas and Western Missouri, and Thomas Witt, executive director of the Kansas Equality Coalition.
The symposium is free and open to the public, but anyone who wants to attend must register. A registration form and more information will be available on the U.S. Attorney’s Web site at www.justice.gov/usao/ks
Sponsors for the event include the U.S. Attorney’s Office for the District of Kansas, the U.S. Attorney’s Office for the Western District of Missouri, the Kansas Law Enforcement Training Center, the Public Safety Training Center at Johnson County Community College and the Regional Community Policing Training Institute at Wichita State University.
For more information call Jim Cross, public information officer, at 316-269-6481.
U.S. Attorney's Office Selects Corporate Monitor for Department of Energy Prime Contractor CH2M Hill Plateau Remedition CompanyRead the Press Release
Spokane, WA – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced today the selection of Pamela M. Roberts, a former Supervisory Staff Accountant with the Securities and Exchange Commission, to serve as the Corporate Monitor of CH2M Hill Plateau Remediation Company (CHPRC). The selection was made pursuant to the March Non-Prosecution Agreement (the Agreement) between CH2M Hill Companies Ltd, (CH2M Hill) and the U.S. Attorney's Office. As the Corporate Monitor for CHPRC, Ms. Roberts will ensure that CHPRC is in compliance with the terms and conditions of the Agreement and that CHPRC is in compliance with its own policies and procedures regarding the recording and reporting of labor hours to the Department of Energy (DOE). In addition, Ms. Roberts will monitor CHPRC's compliance with its contractual and regulatory obligations to DOE including those related to CHPRC's claiming of performance based incentives under its contract with DOE.
By way of the Agreement CH2M Hill admitted that its subsidiary CH2M Hill Hanford Group Inc. had criminally conspired with its own employees to defraud the United States through massive and systemic timecard fraud. Under the Agreement, as well as a related civil settlement with the Department of Justice, CH2M Hill has paid $18.5 million in damages and penalties related to the conspiracy and corresponding false claims. Among other terms and conditions in the Agreement CH2M Hill agreed to pay for a corporate monitor for three years at CHPRC, its remaining subsidiary at the Department of Energy's Hanford Site in Southeastern Washington. The Agreement requires CH2M Hill to contribute up to $500,000 towards accountability systems to help ensure that hours charged by CHPRC to DOE are in fact actually worked. As the Corporate Monitor, Ms. Roberts will play a central role in working with CH2M Hill, DOE, and the OIG to implement this provision of the Agreement.
Michael C. Ormsby said, "We are very pleased that Ms. Roberts has agreed to be the corporate monitor at CHPRC. I am confident that she possesses the ability, experience, and drive to fulfill successful the responsibilities of the position. The United States Attorney's Office for the Eastern District of Washington is fully committed to assisting and supporting Ms. Roberts' monitoring mission, particularly in the area of labor hours and performance based incentives to which large bonuses for management are often tied. We cannot allow for another timecard fraud conspiracy to develop at Hanford. We anticipate that Ms. Roberts will work with cooperating CHPRC employees to prevent just that." Mr. Ormsby also said, "CH2M Hill has been true to its word and by all accounts has been fully complying with both the letter and spirit of the Agreement. We fully expect that they will continue their commendable assistance in the process of getting Ms. Roberts set up and supporting her efforts."
Under the Agreement Ms. Roberts will be given full access to CHPRC's records and computer network, all areas managed by CHPRC, and will have the ability to attend any meeting of CHPRC employees at any level of its corporate hierarchy. In addition, the Agreement calls for Ms. Roberts to have review and comment authority on CHPRC's policies and procedures as well as its internal audits. Ms. Roberts, though an independent monitor, will work with the Department of Energy Office of Inspector General (OIG) by, for instance, providing quarterly reports. The Agreement provides that, if CH2M Hill does not fully comply with its obligations, CHG is subject to criminal prosecution based, in part, on the official admissions of CHG that it did in fact criminally conspire with its own employees to defraud the United States.
Ms. Roberts will be the first corporate monitor ever appointed to monitor a contractor at the Hanford Site. Ms. Roberts is anticipated to officially start as the CHPRC Corporate Monitor on July 15, 2013 and will serve until March of 2016.
Two Rochester Men Indicted in Sex Trafficking CaseRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned a two count indictment charging Daniel Tanck, 31, and Robert Palermo, 29, both of Rochester, N.Y., with conspiracy to commit sex trafficking of a minor and sex trafficking of a minor. Conspiracy to commit sex trafficking of a minor carries a mandatory penalty of life in prison and a fine of $250,000. Sex trafficking of a minor carries a mandatory minimum penalty of 10 years in prison and a maximum penalty of life and a $250,000 fine.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that according to the criminal complaint, a fourteen year old victim reported that Tanck and Palermo placed an ad on Backpage.com for her to engage in prostitution activities. According to the victim, the defendants took pictures of her for the Backpage.com ad at their residence on Emerson Street in Rochester. Tanck and Palermo then posted the advertisement using Tanck’s computer. The victim alleged that both Tanck and Palermo knew that she was fourteen years of age.
The criminal complaint is the culmination of an investigation on the part of the Federal Bureau of Investigation's Cyber Crimes Task Force, which includes the Monroe County Sheriff's Office, under the direction of Sheriff Patrick O'Flynn, the Rochester Police Department under the direction of Chief James Sheppard, and Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel, and the Monroe County District Attorney's Office under the direction of Sandra Doorley.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Three Charged in Kidnapping of Mission Man Taken into MexicoRead the Press Release
McALLEN, Texas – A criminal complaint has been partially unsealed following the recent arrests of three area residents alleging their involvement in the kidnapping of a Mission resident, United States Attorney Kenneth Magidson announced today.
Roel Garza, 25, of Rio Grande City, was arrested late yesterday and is expected to make an initial appearance this morning before U.S. Magistrate Judge Peter Ormsby. Mexican citizen Orlando Hernandez, 26, and Jose Lorenzo Davila, 24, both of Rio Grande City, were arrested July 4 and 5, respectively.
The three were allegedly involved in the kidnapping of a Mission man which was carried out in retaliation for an alleged theft of more than 100 kilograms of cocaine tied to the Gulf Cartel.
On May 28, 2011, the victim and his wife drove to the residence of a family member in Mission, at which time three vehicles simultaneously arrived, one of which was a white Ford pickup. The driver, Gerardo Villarreal, 23, of Roma, identified himself as a police officer. The victim was placed in the truck and allegedly handcuffed by Davila. Believing her husband had been placed in police custody, the victim’s wife followed the truck but lost sight of it. She called local law enforcement about the “arrest,” at which time she was informed they had no record of such an arrest and he was not in their custody, according to the complaint.
The victim was allegedly struck, blindfolded, gagged and bound with duct tape thereby immobilizing his arms and legs and initially taken to a ranch in the Mission/Alton area. The complaint alleges that after the kidnapping, some or all of the defendants became aware that they had kidnapped the wrong person. However, the victim was still transported in the trunk of a vehicle from the ranch to the Rio Grande River where he was crossed into Mexico and subsequently murdered, according to allegations. The victim was a permanent resident of the U.S. with no criminal record and had no involvement in the theft or sale of cocaine. The victim has not been heard from or seen since this event.
If convicted, all face up to a life in federal prison and a possible $250,000 fine.
Villarreal previously pleaded guilty in a separate, but related, case and is pending sentencing.
The FBI is investigating the case. Assistant United States Attorney Anibal J. Alaniz is prosecuting.
A defendant is presumed innocent unless convicted through due process of law.Tax Attorney Ordered to Prison for Causing Tax Loss of More Than $2 MillionRead the Press Release
HOUSTON – Tax attorney and Certified Public Accountant (CPA) William R. Zweifel has been sentenced for his convictions on two counts of willfully aiding and assisting in the preparation and presentation of U.S. Individual Income Tax Returns that were false or fraudulent, United States Attorney Kenneth Magidson announced today along with Special Agent in Charge Lucy Cruz of Internal Revenue Service – Criminal Investigation (IRS-CI). Zweifel pleaded guilty March 8, 2013.
Today, U.S. District Judge Keith P. Ellison, who accepted the guilty plea, handed Zweifel a total sentence of 37 months and ordered him to pay a $10,000 fine and $250,000 in restitution to the IRS. Zweifel will be required to serve a one-year-term of supervised release and to perform 200 hours of community service following completion of the prison term.
At the hearing, the defense presented documents to the court showing that Zweifel had filed a motion with the Supreme Court of Texas seeking to resign as an attorney and counselor at law in Texas. Documents were also presented indicating that Zweifel had agreed with the Texas State Board of Public Accountancy to a consent order revoking his individual CPA certificate and firm CPA license in Texas.
According to the plea agreement filed in the record of the case, Zweifel acknowledged he was a tax attorney and CPA and that he prepared false income tax returns for some taxpayers that claimed large tax refunds to which the taxpayers were not entitled. The method he used to create a false income tax refund was to offset a taxpayer’s income with an alleged loss from either a partnership in which the taxpayer had no partnership interest or from an S corporation which reported no loss for the taxpayer to claim. Zweifel stipulated in the plea agreement that the tax losses to the United States from the false claims on the two income tax returns listed in the criminal information were approximately $61,000 and approximately $42,000, respectively. Zweifel further admitted that for purposes of determining relevant conduct under the U.S. Sentencing Guidelines, the tax loss to the United States in this case is approximately $2.2 million.
Zweifel has agreed to never again aid or assist in the preparing or presenting of tax returns for any taxpayer other than himself and any entity he owns. He further agreed not to oppose any civil injunction action brought by the United States seeking to enjoin him from preparing income tax returns for anyone but himself and any entity he owns.
Previously released on bond, Zweifel was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
This matter was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.
Tampa Men Plead Guilty to Armed Robberies Involving GrenadesRead the Press Release
Tampa, Florida - Acting United States Attorney A. Lee Bentley, III announces that Gabriel James Brown, Jr. (33, Tampa) pleaded guilty last week to two counts of carrying, using and brandishing a firearm in furtherance of a violent crime. Brown faces a mandatory minimum sentence of 32 years in federal prison, and a maximum of life imprisonment. Brown’s co-defendant, Robert A. McChristian (44, Tampa) pleaded guilty on June 27, 2013, to a single count of carrying, using, brandishing and discharging a firearm in furtherance of a violent crime. McChristian faces a mandatory minimum sentence of 30 years in prison and a maximum of life imprisonment.
According to the Brown’s plea agreement, from December 2012 through February 6, 2013, Brown and McChristian committed a series of armed robberies of businesses in the Tampa area. Brown was arrested on February 6, 2013. On February 5, 2013, acting along, Brown robbed a T.D. Bank in Auburndale of $19,127. He robbed the bank at gun-point and used a smoke grenade while fleeing from the bank to obscure his escape. Brown also pleaded guilty to a January 18, 2013, robbery of a Metro PCS store during which he took $631 in cash and a total of 29 cell phones and accessories valued at approximately $2,332.
According to McChristian’s plea agreement, on December 20, 2012, McChristian used a military grade flash bang grenade and a gun provided by Brown to rob a Papa John’s Pizza restaurant in Tampa. McChristian threw the flash bang grenade into the store. He then ran in and robbed the store at gunpoint of approximately $300. Prior to the restaurant robbery, Brown and McChristian arranged to meet via text message. In the text messages, McChristian arranged to meet Brown to get the gun and the flash bang grenade so that McChristian could “shake the spot myself.” McChristian was caught, in part, based on the text messages recovered by law enforcement.This case was investigated by the Federal Bureau of Investigation, the Polk County Sheriff's Office, the Auburndale Police Department, the Hillsborough County Sheriff's Office, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Mark E. Bini.
St. Louis Man Indicted on Cocaine OffenseRead the Press Release
Michael J.W. Bryant, 41, of St. Louis, Missouri, was indicted on June 18, 2013, by a federal grand jury sitting in East St. Louis, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The Grand Jury charged Bryant with Unlawful Possession with the Intent to Distribute Cocaine. The indictment was originally suppressed, but has since been unsealed. Upon conviction, the charged offense carries a possible penalty of twenty (20) years in prison, a $1,000,000 fine, at least three (3) years of supervised release, and a $100 special assessment.
Bryant was arraigned on July 9, 2013, at which time he was remanded to custody pending a Detention Hearing, which has been scheduled for July12, 2013. Bryant is currently scheduled for jury trial beginning September 9, 2013, in United States District court in East St. Louis.
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 for this indictment was gathered during an investigation conducted by the Drug Enforcement Administration (DEA) and the Illinois State Police. This case has been assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Springfield Man Sentenced for Drug ConspiracyRead the Press Release
BOSTON – A Springfield man was sentenced yesterday in U.S. District Court in Springfield for dealing heroin.
Ariel Acevedo, 36, was sentenced by U.S. District Judge Michael A. Ponsor to nine years in prison, followed by four years of supervised release. In April 2013, Acevedo pleaded guilty to conspiracy to distribute heroin and possession with intent to distribute heroin.
On Feb. 18 and 19, 2012, Acevedo arranged for the sale of approximately 150 grams of heroin to another individual. During numerous conversations, which were consensually monitored and recorded by the Drug Enforcement Administration, Acevedo discussed quantities, pricing, and quality of the heroin. On Feb. 19, 2012, Acevedo met the individual on Chestnut Street in Springfield, and a few minutes later, Acevedo’s co-defendant, Jose Cruz arrived. Cruz provided the individual with a package containing 150 grams of heroin, and the individual provided Acevedo with $11,250 in cash, which Acevedo began to count. The DEA then arrested both Acevedo and Cruz. In June 2013, Judge Ponsor sentenced Cruz to five years in prison for his role in the offenses.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Mark Mastroianni, Hampden County District Attorney; and Commissioner William Fitchett of the Springfield Police Department, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.
Sixteen Charged with Federal Narcotics Distribution Offenses After Atf-led InvestigationRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kenneth J. Croke, Acting Special Agent in Charge of the ATF Boston Field Division, today announced that a federal grand jury in Hartford has returned two indictments charging 16 individuals with federal narcotics offenses related to the distribution of crack cocaine and heroin in Connecticut.
This matter stems from a joint law enforcement investigation headed by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) into a narcotics trafficking operation headed by Luther Nance, also known as “Papers” and “Cash.” The investigation, which included numerous controlled purchases of narcotics and physical surveillance, revealed that Nance and his associates allegedly sold crack cocaine and heroin in several communities throughout Connecticut utilizing multiple bases of operation, including a house on Carroll Road in East Hartford, the Sheldon Oaks housing complex in Hartford, and an apartment on Valley Street in Willimantic.
“I want to commend the excellent work of the ATF and all of our federal, state and local law enforcement partners who have participated in this successful investigation targeting drug distribution and related criminal activity in several communities across Connecticut,” stated Acting U.S. Attorney Daly. “The U.S. Attorney’s Office is committed to using the full weight of federal law to prosecute narcotics traffickers to make our communities safer.”
“ATF’s top priority is to combat violent crime and keep communities safe,” stated ATF Acting Special Agent in Charge Croke. “The charges announced today are a prime example of what happens when ATF and our law enforcement partners work together – we successfully target, disarm and remove violent criminals from the neighborhoods in which they operate.”
A 51-count superseding indictment, which was returned on June 27, charges the following 15 individuals with conspiring to distribute cocaine base (“crack cocaine”):
LUTHER NANCE, a.k.a. “Papers” and “Cash,” 27, of Willimantic and Windsor
ANTOINE ARMOUR, a.k.a. “Slim,” 22, of East Hartford
FABIAN AUGUSTINE, a.k.a. “J” and “Fabe,” 23, of East Hartford
JAMES BROWN, a.k.a. “Decky,” 23, of East Hartford
MORGAN GILL, a.k.a. “Teck,” 23, of Hartford
MICHAEL GLENN, 29, of Wethersfield
KALONI GOODLEY, a.k.a. “Scrap,” 22, of Hartford
LEESA GRANT, 21, of Hartford
ALONZO HAMILTON JR., a.k.a. “Al,” 20, of Manchester
JAHMELL HARDING, 27, of Hartford
ANTHONY HARRINGTON, a.k.a. “Tone,” 28, of Bloomfield
MONTRELL HUFF, 35, of Unionville
WANDA SOTO, 25, of Willimantic
TYKWELL WALTON, a.k.a. “Money,” 20, of Hartford
RAYSHEQUIA WELLS, 20, of East HartfordNANCE, ARMOUR, AUGUSTINE, BROWN, GILL, HAMILTON, SOTO and WALTON are charged with conspiring to distribute 280 grams or more of crack cocaine. If convicted of this charge, each defendant faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. GLENN, GOODLEY, GRANT, HARDING, HARRINGTON, HUFF and WELLS are charged with conspiring to distribute 28 grams or more of crack cocaine. If convicted of this charge, each defendant faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
Each of the defendants, with the exception of BROWN, is also charged with at least one count of possession with intent to distribute narcotics. In addition, HARDING is charged with one count of possession of a firearm in furtherance of a narcotics trafficking crime and one count of possession of an unregistered short-barrel 12-gauge shotgun.
In a separate indictment, also returned on June 27, DAVID LYN, 32, of Hartford, is charged with five counts of possession with intent to distribute, and distribution of, cocaine base.
Nance has been detained since his arrest on February 13, 2013. The other defendants have also been arrested or are currently detained in state custody.
Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, the U.S. Marshals Service, the Office of the Chief State’s Attorney, the State’s Attorney for the Judicial District of Hartford, and the Hartford, Willimantic, East Hartford, Enfield and Middletown Police Departments.
The case is being prosecuted by Assistant United States Attorneys Geoffrey M. Stone and Jonathan S. Freimann.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Sioux City Bank Robber Sentenced to Federal PrisonRead the Press Release
A man who previously had been convicted of Burglary in 2004 was sentenced July 8, 2013, to over 7 years in federal prison.
Johnnie Hawkins, age 27, from Sioux City, Iowa, received the prison term after a March 27, 2013, guilty plea to one count of bank robbery.
Evidence presented by the United States at the guilty plea and two-day sentencing revealed Hawkins had been convicted of burglary in 2004. During the fall of 2012, Hawkins was trafficking and distributing marijuana in and around Sioux City, Iowa. On or about November 8, 2012, Hawkins, knowingly obtained a Colt Defender .40 caliber, semi-automatic handgun and ammunition that he knew was stolen.
On November 10, 2012, Hawkins, robbed the Heritage Bank at 4530 Singing Hills Boulevard, in Sioux City, Iowa, of $5,954.00. Hawkins possessed and brandished the stolen and loaded handgun in furtherance of the bank robbery. Hawkins threatened and physically restrained a bank teller in furtherance of the bank robbery.Hawkins was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Hawkins was sentenced to 90 months= imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term, and he was ordered to make $5954 in restitution to Heritage Bank. There is no parole in the federal system.
Hawkins is being held in the United States Marshal=s custody until he can be transported to a federal prison.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-4116.
The case was investigated by officers of the Sioux City, Iowa, Police Department and special agents of the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Seven Arrested, Charged with Selling Illegal Drugs to Veterans Treated at VA Medical Centers in New JerseyRead the Press Release
NEWARK, N.J. – Seven men with access to two VA medical centers in New Jersey were arrested this morning by special agents of the U.S. Department of Veterans Affairs, Office of Inspector General and the FBI on federal charges alleging they sold illegal drugs to veterans being treated at the centers, U.S. Attorney Paul J. Fishman announced.
The seven defendants were each charged in separate criminal complaints with various counts of distributing controlled substances – including heroin, crack and hydromorphone – at the VA medical centers in East Orange and Lyons, N.J. Five of the men were arrested this morning at the Lyons facility, one was arrested at the East Orange facility and one was arrested at his home. All are expected to make their initial appearances this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
“According to our charges, these seven men abused their access to VA medical facilities to peddle dangerous drugs to other veterans undergoing treatment,” said U.S. Attorney Fishman. “It is tragic that those who have served their country would exploit their fellow veterans.”
“This investigation was initiated by VA OIG two years ago in response to the fatal heroin overdose of a veteran at the VA medical center in Lyons, New Jersey,” said Jeffrey G. Hughes, Special Agent in Charge, U.S. Veterans Affairs, Officer of Inspector General, Northeast Field Office. “Subsequently, the FBI and VA OIG jointly launched an operation which focused on combating the sale of heroin and crack cocaine to patients at Lyons. VA management at Lyons, including VA Police, provided invaluable support during the course of this investigation. We hope anyone selling drugs at VA treatment facilities will realize that we will vigorously pursue them to protect veterans seeking treatment.”
“The Federal Bureau of Investigation, Newark Division and the Department of Veterans Affairs Office of Inspector General conducted a joint investigation targeting the distribution of narcotics on the grounds of VA Hospitals in New Jersey,” said FBI Special Agent in Charge Aaron T. Ford. “As a result of this joint investigation, the FBI and VA OIG have been successful in disrupting the criminal activity occurring on the VA grounds. The Newark Division will continue to work in conjunction with our federal, state and local partners to combat the drug problem.”
The VA medical centers provide a wide range of medical and rehabilitation treatment services to veterans, including drug abuse and additional rehabilitation services, along with vocational training and other social services. According to the complaints, the defendants, each of whom is a veteran with privileged access to the buildings and grounds of the medical centers, sold controlled substances to other veterans receiving services from the centers.
Each count with which the defendants are charged carries a maximum potential penalty of 20 years in prison and a fine of $1 million, or twice the gross gain or loss from the offense. The defendants and counts with which they are charged are as follows:
Defendant
Charges
Count One – heroin distribution
Count Two – cocaine base distribution
Robin Merritt, 55, of Hackensack, N.J.
Count One - heroin distribution
Count Two - cocaine base distribution
Count Three – hydromorphone distribution
Abdul Kareem Muhammad, 50, of Boundbrook, N.J.
Count One – heroin distribution
Count Two – cocaine base distribution
Yusef Muhammad, 59, of North Plainfield, N.J.
Count One – heroin distribution
Thomas Pearson, 66, of Dover, N.J.
Count One – heroin distribution
Christopher Shalaby, 31, of Somerville, N.J.
Count One – heroin distribution
John Stuckey, 49, of Newark
Count One – heroin distribution
U.S. Attorney Fishman praised special agents of the Veterans Administration, Office of Inspector General, under the direction of Special Agent in Charge Hughes in Newark, and the FBI, under the direction of Special Agent in Charge Ford in Newark, with the investigation leading to the charges. He also thanked the VA Police for their assistance.
The government is represented by Assistant U.S. Attorney David M. Eskew of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
13-279
Johnson, Phillip Complaint
Merritt, Robin Complaint
Muhammad, Abdul Kareem Complaint
Muhammad, Yusuf Complaint
Pearson, Thomas Complaint
Shalaby, Christopher Complaint
Stuckey, John ComplaintSettlement Announced in Whistleblower Suit Against Shredding CompaniesRead the Press Release
PHILADELPHIA – A settlement agreement, resulting from a whistleblower lawsuit, was announced today between the United States and two of the country’s largest commercial shredding services companies. Shred-It Incorporated and Iron Mountain, Incorporated were named in a whistleblower lawsuit that alleged that Shred-It and Iron Mountain contracted with the government to provide shredding services but did not cut the government’s documents to the size required under the General Services Administration’s standards. Accordingly, their claims for payment for these services were false. United States Attorney Zane David Memeger announced that Iron Mountain will pay $800,000 to the government, plus attorneys’ fees; Shred-It will pay $300,000 to the government, plus attorneys’ fees.
The case was originally filed under the False Claims Act by Douglas Knisely, who operates a paper shredding business in Lock Haven, Pennsylvania. The False Claims Act permits ordinary citizens (known as “relators”) to bring lawsuits in the name of the United States alleging fraud against the government. The relator is entitled to a portion of the settlement.
Shred-It and Iron Mountain are two of the largest companies in the United States that provide commercial shredding services to the government.
This matter was handled by Assistant United States Attorney Thomas Johnson and Gregory Pearson of the Department of Justice Civil Frauds Unit.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Rosebud Woman Sentenced for Assault Resulting in Substantial Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman convicted of Assault Resulting in Substantial Bodily Injury was sentenced on July 8, 2013, by U.S. District Judge Roberto A. Lange.
Toni Good Shield, a/k/a Toni Little Thunder, age 30, was sentenced to time served of 112 days in custody, 18 months of supervised release, and $100 to the Federal Crime Victims Fund.
Good Shield was indicted by a federal grand jury on March 13, 2013, and pled guilty to the charge on April 16, 2013.
The conviction stems from an incident that took place on February 7, 2013, when Good Shield kicked the victim causing a fracture to her left leg and a bloody nose.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers. Good Shield was released.
# # #Rosebud Woman Sentenced for Assault by Striking, Beating and Wounding and Simple AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman convicted of Assault by Striking, Beating and Wounding and Simple Assault was sentenced on July 8, 2013, by U.S. Magistrate Judge Mark A. Moreno.
Kelcey Andrews, age 22, was sentenced to 18 months’ probation on each count, 400 hours of community service, and $35 to the Federal Crime Victims Fund.
Andrews was indicted by a federal grand jury on February 13, 2013, and pled guilty to the charge on May 7, 2013.
The conviction stems from an incident that took place on August 3, 2012, when Andrews reached into the front passenger window of a car in which the victim was located, punched the victim in the face and then grabbed the victim by her hair.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers. Andrews was released.
###Rockford Chiropractor Sentenced to 10 Months in Federal Prison for Federal Income Tax EvasionRead the Press Release
ROCKFORD — A Rockford, Ill. chiropractor was sentenced today by U.S. District Judge Frederick J. Kapala for federal income tax evasion. The defendant, Todd R. Cevene, 42, of Caledonia, Ill., was sentenced to 10 months in federal prison. Cevene had been charged on Dec. 14, 2012, with tax evasion by a criminal Information and pled guilty to the charge on Dec. 21, 2012. The court also ordered Cevene to serve 3 years of supervised release following imprisonment, and to pay a fine of $40,000.
According to the Information and plea agreement, Cevene owned or controlled Cevene Care Clinic, S.C., Cevene Management Group, Inc., Cevene Enterprises, LLC, and Todd Cevene Alaska Asset Preservation Trust. Cevene admitted in his plea agreement that for a four-year period between 2004 and 2007, he intentionally evaded payment of his federal income taxes by transferring substantial amounts of Cevene Care Clinic's income to Cevene Management Group, Todd Cevene Alaska Asset Preservation Trust, and Cevene Enterprises. Cevene then used a large amount of the transferred funds to pay for his personal expenses, knowing that these payments would improperly be used as business expense deductions on the federal income tax returns of the entities and that he would not claim those payments as his own personal income. Cevene admitted in his plea agreement that he also caused a large amount of the transferred funds to be transferred directly to him and that he did not include all of those distributions as income on his own personal federal income tax returns.
According to the plea agreement, Cevene admitted that by spreading the income of Cevene Care Clinic among the other entities and using those funds to pay for his personal expenses and make distributions, he intended to diminish the likelihood of discovery of his attempt to evade federal income taxes. Cevene further admitted that he frequently made more than one transfer between the entities in an attempt to avoid detection.
Cevene admitted he owed substantial amounts of income tax for calendar years 2004 through 2007 to the United States that he did not accurately report or pay. Cevene further admitted that his failure to accurately report income and expenses during those years caused a total underpayment of federal income tax of $91,568. Cevene paid these back taxes to the Internal Revenue Service prior to today’s sentencing.
The sentencing was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent-In-Charge of the Chicago Field Office of Internal Revenue Service - Criminal Investigation Division.
The government was represented by Assistant U.S. Attorney Michael D. Love.
Rock Rapids Man Sentenced to over Five Years for Distributing Child Pornography, Unlawful Possession of A Firearm, and Destroying EvidenceRead the Press Release
A man who distributed child pornography, was a drug user in possession of a firearm, and destroyed evidence was sentenced July 3, 2013, to 66 months in federal prison.
Lennon Slade, age 27, of Rock Rapids, Iowa, received the sentence after a February 14, 2013, guilty plea to one count of distribution of child pornography and one count of destruction of evidence, and a May 30, 2012, guilty plea to one count of being a drug user in possession of a firearm. At the guilty pleas, Slade admitted that he distributed child pornography, that he was a drug user in possession of a firearm, and that he destroyed evidence when officers were attempting to execute a search warrant at his house.Slade was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Slade was sentenced to 66 months’ imprisonment. A special assessment of $300 was imposed, and Slade must also serve a five-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorneys Forde Fairchild and Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Federal Bureau of Investigation, and the Lyon County Sheriff’s Office.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file numbers are CR 12-4080 and CR 12-4015.
Rochester Man Sentenced for Stealing Interstate Shipment from RailcarRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Timothy M. Stone, 34, of Rochester, N.Y., who was convicted of conspiracy to commit burglary of a railcar, burglary of a railcar, and theft of an interstate shipment following a jury trial, was sentenced to 12 months and ordered to pay $3,069.28 in restitution by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that on June 30, 2009, Stone, along with co-conspirators Richard E. Riedman, Anthony Russell and Anthony Toscano, stole more than 17 gross tons of a high-grade scrap steel from a railcar at a CSXT rail yard in Batavia, N.Y. Stone and his co-conspirators used a logging truck to remove the scrap steel from the railcar, wore dark clothing and used lookouts to avoid detection by law enforcement authorities and pedestrians, and used two-way radios to communicate with each other during the theft.
Stone and his co-conspirators were apprehended by members of the Genesee County Sheriff's Office in the logging truck and a pick-up truck as they left the scene of the theft in the early morning hours of June 30, 2009. The bales were in the process of being shipped to a steel mill in Pennsylvania when Stone and the other defendants stole them. Stone, Riedman, Russell, and Toscano were convicted after a two-week jury trial before Judge Siragusa in September 2012.
Toscano was sentenced to 18 months in prison. Russell will be sentenced on August 16, 2013 and Riedman on September 16, 2013.
The conviction was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel, and the Genesee County Sheriff's Office, under the direction of Gary Maha.Rochester Man Sentenced for Role in Jail EscapeRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Eddie R. Palmer, 37, of Rochester, N.Y., who was convicted of aiding escape, was sentenced to time served (approximately 15 months) by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Jennifer M. Noto, who handled the case, stated that the defendant Palmer and Joseph Mitchell escaped from the Monroe County Jail on March 31, 2011. Palmer served as a "look-out" to warn if guards were approaching while Mitchell sawed the bars on windows inside the jail. The defendant also helped Mitchell break the outside jail window through which the two ultimately escaped. Palmer and Mitchell were then picked up by Lakesia Binion and transported to an area near Sodus, N.Y. where Mathias Smith helped them hide. The two defendants were apprehended approximately a week later on April 8, 2011, inside a camping trailer located on a residential property.
Palmer is the last defendant to be sentenced in this case. Mitchell was sentenced to 25 years in prison for his role in the escape and drug trafficking conspiracy. Binion was sentenced to three years of supervised release for her role in the escape and Smith received a sentence of two years probation.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, officers of the Rochester Police Department, under the direction of Chief James Sheppard, the U.S. Marshals Service, under the direction of Marshal Charles Salina and investigators of the Monroe County Sheriff's Office, under the direction of Sheriff Patrick O'Flynn.Rexford Woman Sentenced to Five Years Probation for Harboring an Illegal AlienRead the Press Release
Albany, New York — Annie George, a/k/a Annie Kolath, a/k/a Sajimol George, age 41, of Rexford, New York, was sentenced today by Chief United States District Court Judge Gary L. Sharpe to five years of probation for harboring an illegal alien, announced United States Attorney Richard S. Hartunian and Matthew Scarpino, Resident Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations. George, who was found guilty on March 8, 2013 of one count of harboring an illegal alien following a five-day jury trial, was also sentenced to eight months of home detention.
Between about November 2005 and May 3, 2011, George harbored an illegal alien from India in her homes in Catskill, Menands, and Rexford, New York. During the course of the harboring, the illegal alien performed household chores for George and cared for George’s children.
This case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations.
LOCAL CONTACT:
Rick Belliss
Assistant U.S. Attorney
Tel: (518) 431-0247President of New Jersey-Based Financial Services Firm Pleads Guilty to Multimillion-dollar Securities FraudRead the Press Release
Targeted Dozens of Investors Across the Country
CAMDEN, N.J. – The president of an investment and financial services firm today admitted defrauding dozens of investors New Jersey, Pennsylvania, Texas and elsewhere of $5 million and evading taxes, U.S. Attorney Paul J. Fishman announced.
Everett C. Miller, 43, of Marlton, N.J., pleaded guilty before U.S. District Judge Renee Marie Bumb in Camden federal court to an information charging him with one count of securities fraud and one count of tax evasion.
The defendant in this case has admitted responsibility in a financial scheme that was both widespread and long-running,” U.S. Attorney Fishman said. “By preying on trusting investors around the country over a period of years, he was able to rob them of millions of dollars. He defrauded the public as well, by failing to pay taxes on his illegal proceeds. He will now face the punishment he deserves for his greed.”
Aaron T. Ford, special agent in charge of the FBI office in Newark, said, “Investment schemes such as that perpetrated by Mr. Miller prey on innocent investors and compromise our free market economy. Mr. Miller put his investors’ resources, pensions, and life savings at risk for his own gain. The FBI, together with its law enforcement and regulatory agency partners, will vigorously investigate these financial crimes and hold those responsible accountable.”
“Remember the old cliché: if it sounds too good to be true it probably is,” Shantelle P. Kitchen, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office, said. “Mr. Miller preyed upon trusting investors and then stole their hard-earned money. Today’s plea should be a reminder for investors to exercise caution when pitched with an investment opportunity that promises unbelievable returns.”According to documents filed in this case and statements made in court:
Miller was the founder, chief executive officer, president, principal and sole owner of Carr Miller Capital LLC (CMC), an investment and financial services firm based in Marlton. Miller and others solicited investments through the firm from individuals located in New Jersey, Pennsylvania, North Carolina, Arkansas, Texas and elsewhere. CMC had more than 30 affiliates and related entities, and more than 75 related bank accounts. Miller controlled the firm’s finances and established himself as synonymous with CMC. Prior to founding CMC in June 2006, Miller was a registered financial advisor at several financial institutions.
Miller admitted that from June 2006 through December 2010, he and others issued promissory notes to more than 190 investors across the United States, and Miller and CMC received $41.2 million from these investors. The notes were provided as “securities,” but Miller and CMC never registered the notes as securities with any federal or state agency, nor were the notes exempt from such registration requirements. The notes had a term of nine months and promised the investors returns of 7 to 20 percent per year, and a return of the principal investment at the end of the nine-month period.
Miller and others falsely represented to the investors that their money would be invested in certain ways, but the investors were not provided with material information about their investments or were misled about the risks of their investments. Miller commingled and pooled the investors’ monies into one of CMC’s 75 related bank accounts. Unbeknown to the investors, Miller used some of the monies in the following ways: (1) to repay prior investors, most in Ponzi scheme fashion, (2) to pay CMC and its related entities’ payrolls and operating expenses, and (3) to support Miller’s lifestyle. Miller’s purchases included luxury automobiles; home furnishings and electronic equipment; tickets to entertainment and sporting events; travel, lodging, and vacations; meals, entertainment, retail shopping; and groceries.
On Aug. 11, 2009, the Arkansas Securities Department (ASD) initiated an investigation of Miller, CMC, and others for selling unregistered securities to investors in the form of the promissory notes. Following the investigation, the ASD issued a cease-and-desist order against Miller, CMC, and others from selling the notes.From August 2009 through December 2010, despite knowing about the ASD’s investigation of the promissory notes and CMC’s inability to pay either the interest or the principal on them, Miller and others continued to sell the notes as unregistered securities to investors. They issued notes to approximately 50 new investors, but never returned any of the principal to the new investors.
Miller admitted that for calendar years 2007, 2008, and 2009, he intentionally failed to provide the IRS with any information regarding the proceeds that he personally received in connection with his fraudulent scheme. Miller failed to disclose $218,770, $244,879 and $199,507 for 2007, 2008 and 2009, respectively. In total, Miller admitted failing to report $663,156 in taxable income to the IRS, resulting in a tax loss to the government of $47,342.
At today’s plea proceeding, Judge Bumb entered a consent judgment and order of forfeiture in the amount of $4,999,400, which constitutes the proceeds Miller obtained as a result of the securities fraud.
The securities fraud count to which Miller pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a fine of $5 million. The tax fraud count is punishable by a maximum potential penalty of five years in prison and a fine of up to $250,000. Sentencing is scheduled for Oct. 18, 2013.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, for the investigation leading to today’s guilty plea. He also thanked the Financial Industry Regulatory Authority – Criminal Prosecution Assistance Group, and the U.S. Securities and Exchange Commission’s Philadelphia Office for its assistance with this investigation. And thanked the N.J. Securities Fraud Prosecution Section, the Arkansas Securities Department and the Texas State Securities Board for their roles in the investigation.
The government is represented by Assistant U.S. Attorneys Aaron Mendelsohn of the Economic Crimes Unit and Evan Weitz of the Asset Forfeiture and Money Laundering Unit of the U.S. Attorney’s Office in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
13-281
Defense counsel: John A. Azzarello Esq., Chatham, N.JMiller, Everett Information
Philadelphia Doctor Pleads Guilty to Running Pill MillRead the Press Release
PHILADELPHIA - Kermit Gosnell, 72, of Philadelphia, pleaded guilty today to 12 counts in connection with running a pill mill out of his clinic located at 3801-3805 Lancaster Avenue in Philadelphia. Gosnell pleaded guilty to conspiracy to distribute controlled substances, including oxycodone, alprazolam, and codeine; distribution and aiding and abetting the distribution of oxycodone; and maintaining a place for the illegal distribution of controlled substances. U.S. District Court Judge Cynthia M. Rufe scheduled a sentencing hearing for October 4, 2013. He faces an advisory sentencing guideline range of 292 to 365 months in prison.
Gosnell, with the assistance of several of his former office staff at Family Medical Society, A Division of Women’s Medical Society, Inc. (“WMS”), ran a prescription pill mill from June of 2008 through February 18, 2010. Gosnell wrote fraudulent prescriptions for thousands of prescription pills and the frequently-abused syrups Phenergan and Promethazine with Codeine, to drug “seekers,” who met with Gosnell briefly for a cursory exam or no exam. Gosnell and his staff allowed customers to purchase multiple prescriptions under multiple names; customers could place orders for refills in person, over the phone, or by leaving a message on a WMS office answering machine; the WMS office staff would give the refill orders to Gosnell, who, without seeing the customer, would write the requested prescription and give it to WMS staff who would then collect cash and “tips” from customers. Gosnell went from writing several hundred prescriptions for controlled substances per month filled at pharmacies in 2008 to over 2,300 filled at pharmacies in January of 2010. Gosnell charged from $115.00 to $150.00, with a follow up visit fee of $50.00 and a $20 fee for refills of controlled substances for cash paying customers.
“Prescription drug abuse is a growing epidemic, made worse by unscrupulous doctors and other professionals who use their licenses to distribute dangerous drugs to addicts and those who have no actual medical need for the drugs,” said U.S. Attorney Zane David Memeger. “The investigation and prosecution of those involved in the illegal distribution of prescription drugs is a priority of the Department of Justice and this United States Attorney’s Office.”
“Doctors who deal powerful drugs to vulnerable people are violating their own oath – and our country’s laws,” said FBI Special Agent-in-Charge Edward J. Hanko. “The FBI and its partners are committed to investigating illegal drug distribution, whether it’s via a street pusher or a prescription pad.”
“The Drug Enforcement Administration wishes to thank all of the law enforcement agencies that participated in this investigation as well as the U.S. Attorney’s office for their support in the prosecution of Kermit Gosnell,” said DEA Special Agent-in-Charge David G. Dongilli. “The investigation included undercover purchases of oxycodone, a highly addictive Schedule II Controlled Substance, and it revealed that Gosnell and members of his staff were using his medical license and DEA Registration as a shield to cover his drug distribution operation.”
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Department of Health and Human Services/Office of Inspector General, the Philadelphia Police Department, and the Philadelphia District Attorney’s Office. It is being prosecuted by Assistant United States Attorneys Joan E. Burnes and Jessica Natali.
UNITED STATES ATTORNEY'S OFFICE Contact: PATTY HARTMAN
EASTERN DISTRICT, PENNSYLVANIA Media Contact
Suite 1250, 615 Chestnut Street 215-861-8525
Philadelphia, PA 19106UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Olathe Contractor Sentenced for Tax EvasionRead the Press Release
KANSAS CITY, KAN. – The owner of an Olathe drywall contracting company has been sentenced to two years in federal prison for failing to pay more than $370,000 in federal income taxes, U.S. Attorney Barry Grissom said today.
Marcos Bowman, 41, Olathe, Kan., pleaded guilty to one count of federal tax evasion. In his plea, he admitted he did not file an individual income tax return in 2007, 2008 and 2009 even though the company he owned, BCK Drywall, had gross receipts during those years of more than $7.9 million. Based on bank records and other sources, he owed at least $373,473 dollars in income tax during those years.
Bowman’s company installed drywall on new commercial projects such as hotels and apartments. Bowman paid for his personal expenses out of BCK’s bank accounts. He took actions to avoid taxes including paying for a girlfriend to purchase a $355,000 home in Olathe in her name and then transfer the property to the mother of his children. He also paid for the purchase of several vehicles in his girlfriend’s name.
He also failed to provide subcontractors who did work for his company with Form 1099s so they could report the income they received from him on their own tax returns.
Grissom commended IRS Criminal Investigation and Assistant U.S. Attorney Scott Rask for their work on the case.
New Orleans Man, Michael Larrieu, Pleads Guilty for Failure to Register as Sex OffenderRead the Press Release
MICHAEL LARRIEU, age 25, a resident of New Orleans, Louisiana, pled guilty today for failure to register as a sex offender, announced U. S. Attorney Dana J. Boente.
According to documents filed in federal court, in 2007, LARRIEU pled guilty to possession of child pornography in U. S. District Court, Eastern District of Louisiana. LARRIEU was sentenced to forty (40) months imprisonment to be followed by a life time supervised release term. As a result of LARRIEU's conviction, he was required to register pursuant to the Sex Offender Registration and Notification Act.
LARRIEU admitted that between February 27, 2013 and March 25, 2013 he failed to comply with his sex offender registration requirements.
LARRIEU faces a maximum term of imprisonment of ten (10) years, a fine of $250,000 and up to five (5) years of supervised release. LARRIEU is scheduled to be sentenced on September 24, 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 United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the United States Marshals and prosecution of this case is being handled by Project Safe Childhood Coordinator and Strike Force Chief, Assistant U. S. Attorney Brian M. Klebba.
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New Jersey Adult Paraphernalia Wholesaler Sentenced to Prison for Tax Evasion, Hiding Nearly $1.2m from New York Business, Including in Undeclared Indian Bank AccountsRead the Press Release
NEWARK, N.J. – A Middlesex County, N.J., man who co-owns and operates a wholesale merchandise business in New York selling adult paraphernalia was sentenced today to 19 months in prison for concealing more than $1.2 million in income in various domestic and foreign bank accounts, New Jersey U.S. Attorney Paul J. Fishman and Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division announced.
Sameer Gupta, 33, of Edison, N.J., pleaded guilty before U.S. Magistrate Judge Patty Shwartz on Feb. 26, 2013, to one count of tax evasion in connection with his diverting funds from the wholesale merchandise business, J.S. Marketers Inc., to undisclosed foreign accounts at HSBC in India, among other places. U.S. District Judge Faith S. Hochberg imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Gupta is the 50 percent owner of J.S. Marketers Inc., which sells adult paraphernalia to large adult store chains and smaller retail video stores and bodegas. From 2006 through 2009, Gupta diverted $822,916 of the business’ receipts into 17 different personal bank accounts held in the names of various individuals, including himself and family members. He directed more than $250,000 of those diverted funds into six different accounts held offshore at a branch of HSBC in India. From 2007 through 2009, Gupta caused 22 J.S. Marketers corporate checks to be made payable to himself and family members in amounts identical to invoices from the business’ suppliers. Gupta endorsed those checks, which totaled $375,138, and deposited them into bank accounts that he controlled. Gupta filed individual income tax returns for the years 2006 through 2009 that did not report his income from the diverted funds.
As a result, Gupta evaded taxes on $1,198,054 in income for 2006 through 2009. He also failed to file Reports of Foreign Bank and Financial Accounts, (FBARs), for 2006 through 2008. The tax loss resulting from Gupta's conduct, not including interest and penalties, is $383,475.
In addition to the prison term, Judge Hochberg sentenced Gupta to serve two years of supervised release. As part of his plea agreement, Gupta has paid to the United States Treasury a one-time FBAR penalty of $259,045 and has cooperated with the IRS in the investigation of his outstanding taxes due and owed for 2006 through 2009. Judge Hochberg also ordered Gupta to pay an additional $20,000 fine.
U.S. Attorney Fishman and Assistant Attorney General Keneally credited special agents with IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen in Newark, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Joseph Mack of the U.S. Attorney’s Health Care and Government Fraud Unit and Trial Attorney Michael C. Vasiliadis of the Department of Justice Tax Division.13-280
Defense counsel: Kevin H. Marino Esq., Chatham, N.J.
New Haven Resident Sentenced to 54 Months in Federal Prison for Distributing Crack CocaineRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that VINCENT MESCREA, also known as “Jose Jimenez,” 43, a citizen of the Dominican Republic last residing in New Haven, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 54 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
MESCREA is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants and seizures of narcotics and firearms. The investigation revealed that MESCREA conspired with others to purchase and redistribute heroin.
MESCREA’s criminal history includes several prior convictions, including at least two felony drug convictions.
MESCREA has been in federal custody since May 17, 2012. On February 20, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine base (“crack cocaine”).
MESCREA faces deportation proceedings after he completes his prison term.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Nancy Louise Delgado Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on July 3, 2013, before U.S. District Judge Sam E. Haddon, NANCY LOUISE DELGADO, a 46-year-old resident of Lodge Grass, was sentenced to a term of:
Probation: 5 years
Special Assessment: $200
Restitution: $12,939
DELGADO was sentenced in connection with her guilty plea to theft of government money.
In an Offer of Proof filed by Assistant U.S. Attorney Chad C. Spraker, the government stated it would have proved at trial the following:
From 2006 through 2009 DELGADO received over $13,000 in Section 8 Tenant-based Choice Voucher Program (Section 8) funds to which she was not entitled. Section 8 provides federal monetary assistance to low-income individuals who rent homes or apartment.
DELGADO applied for Section 8 benefits on June 29, 2004, and began receiving rental assistance on March 17, 2006, for her residence in Billings. WF moved into DELGADO's home just after July 4, 2006. He was self-employed until about April 2008, when he began working for Bresnan Communications, which paid him approximately $2,500 a month. WF lived with DELGADO until 2009.
From July 2006 to March 2009, DELGADO underwent three annual reexaminations and six interim reexaminations with the Billings Housing Authority. On each occasion the housing authority inquired who was living in her household, and on each occasion DELGADO failed to inform the housing authority that WF was living with her. WF's income from 2008 to 2009 would have reduced the Section 8 benefits to which DELGADO was eligible by over $13,000.
DELGADO's Section 8 benefits continued uninterrupted until February 2010, when a detective interviewed DELGADO and WF in connection with another matter. In her interview, DELGADO told the detective that WF had lived with her for about four years.
After discovering that WF had been living with DELGADO, the Billings Housing Authority notified DELGADO that her Section 8 assistance would be terminated. DELGADO requested a hearing on the decision, and during that hearing DELGADO admitted that WF had lived with her for approximately four and a half years. When asked why she had not reported that he was living with her, DELGADO replied that they did not want his income calculated for rent purposes.
The investigation was conducted by the U.S. Department of Housing and Urban Development - Inspector General's Office.
Mission Man Sentenced for Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on July 8, 2013, by U.S. District Judge Roberto A. Lange.
James Menard, age 30, was sentenced to 28 months of imprisonment; a $1,000 fine; 3 years of supervised release; and a $100 special assessment to the Federal Crime Victims Fund.
Menard was indicted by a federal grand jury on July 18, 2012. He pled guilty to the above charge on April 9, 2013.
The charge stems from an incident wherein a South Dakota Highway Patrol Trooper came upon a vehicle with its hood up sitting on the side of Highway 44. There was smoke coming from under the hood and the vehicle’s hazard lights were on. The trooper stopped to provide assistance and encountered three men with the vehicle. During the trooper’s contact with the three men, a cigarette box stuffed with a plastic bag containing 12.8 grams of methamphetamine was found in the vehicle. Additionally, trace amounts of marijuana were located inside the head band of a baseball cap located in the back seat, and a glass pipe was also found stuffed in between the rear seat cushions. A urine sample was obtained from Menard who tested positive for use of methamphetamine.
The investigation was conducted by the South Dakota Highway Patrol and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Menard was immediately turned over to the custody of the U.S. Marshals Service.
# # #Mission Man Sentenced for Assaulting, Resisting, Opposing, and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Assaulting, Resisting, Opposing, and Impeding a Federal Officer was sentenced on July 8, 2013, by U.S. District Judge Roberto A. Lange.
Jody Brave, age 42, was sentenced to 10 months in custody, 18 months of supervised release, and $100 to the Federal Crime Victims Fund.
Brave was indicted by a federal grand jury on December 11, 2012, and pled guilty to the charge on April 16, 2013.
The conviction stems from an incident that took place on November 6, 2012, when Brave engaged in an altercation with a law enforcement officer during a home disturbance call. Brave grabbed a chain that had a padlock attached to the end, wrapped the end of the chain around his fist, and swung the padlock weighted end of the chain at the officer three times.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Brave was remanded to the custody of the U.S. Marshal.
###Miami, Manhattan, and Brooklyn U.S. Attorneys Announce Extradition of Colombian Narcotics KingpinRead the Press Release
Wifredo A. Ferrer, Preet Bharara, Loretta E. Lynch – the United States Attorneys for the Southern District of Florida (SDFL), Southern District of New York (SDNY), and Eastern District of New York (EDNY), respectively – Michele M. Leonhart, Administrator of the U.S. Drug Enforcement Administration (DEA), James Dinkins, Executive Assistant Director of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and Raymond W. Kelly, the Police Commissioner of the City of New York (NYPD), announced today the extradition of Daniel Barrera Barrera, also known as “Loco,” a citizen of Colombia, to the U.S. on charges that for decades he manufactured hundreds of tons of cocaine annually in Colombia and trafficked it to various parts of the world, including the U.S., and laundered tens of millions of dollars in proceeds from that narcotics trafficking activity. Barrera arrived in the Southern District of New York this afternoon. He will be presented and arraigned in the Southern District of New York before U.S. District Judge Alvin K. Hellerstein on July 10, 2013, at 11:00 a.m., and in the Eastern District of New York before U.S. District Judge I. Leo Glasser on July 11, 2013, at 3:30 p.m. Following his prosecution in New York, Barrera will be presented and arraigned in the Southern District of Florida.
In March 2010, the U.S. Department of the Treasury’s Office of Foreign Assets Control designated Barrera as a “Special Designated Narcotics Trafficker,” pursuant to the Foreign Narcotics Kingpin Designation Act. Barrera was arrested in Venezuela on September 18, 2012. Thereafter, he was sent to Colombia, from where the U.S. sought Barrera’s extradition. The extradition of Barrera is the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by DEA and HSI. 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.
U.S. Attorney Wifredo A. Ferrer said, “Daniel “Loco” Barrera Barrera’s arrest and extradition is the direct result of strong international cooperation with Colombian authorities. It also reflects the hard work and perseverance of our law enforcement partners – both at home and abroad – whose dedicated efforts led to the capture of one of the world’s most notorious drug traffickers. While Barrera evaded capture for several years, the time has finally come for him to answer for his crimes and face justice. As this case confirms, the United States will never tire in its pursuit of those who profit from the illegal drug trade.”
U.S. Attorney Preet Bharara said, “For more than a decade, as alleged, Daniel Barrera Barrera has operated at the center of a truly evil web spun between his narcotics trafficking organization and two violent and sworn enemy terrorist organizations – the AUC and the FARC. By purchasing raw cocaine paste from the FARC, which he processed in laboratories in areas controlled by the AUC, to whom he paid fees, Barrera’s behemoth cocaine organization reached an annual production rate of upwards of 400 tons, enriching itself and the two terrorist organizations it paid off, as the indictment describes. This was truly cocaine with blood in its background. With his arrival in the U.S., Barrera must now answer for his alleged crimes, and we will continue to work with our law enforcement partners, both here and abroad, to prosecute him and other alleged titans of the transnational drug trade.”
U.S. Attorney Loretta E. Lynch said, “As alleged in the three indictments on which he was extradited, Daniel “Loco” Barrera Barrera was the kingpin of a stunningly prolific Colombian drug cartel, which flooded the globe with its deadly product. Barrera also allegedly wrought destruction closer to home, working with not one but two terrorist organizations responsible for decades of death and destruction in Colombia, all to ensure his deadly business ran smoothly. His extradition to the United States marks the fall of the last don of an organization marked by its worldwide reach, ruthless criminality, and staggering profits. This investigation exemplifies the global cooperation necessary to combat international drug traffickers and our commitment to dismantle these criminal organizations from the highest levels down.”
DEA Administrator Michele M. Leonhart said, “Daniel Barrera allegedly worked with both the FARC and AUC terrorist organizations in operating his drug trafficking syndicate, becoming one of the most prolific drug traffickers of the past twenty years. Charged with manufacturing upwards of 400 tons of cocaine a year, Barrera’s alleged impact on the global trade of cocaine was immense – but so was DEA’s response. Thanks to the cooperative efforts of our Colombian and U.S. law enforcement counterparts, Barrera’s criminal career is over as he now faces charges that may bring him a life behind bars.”
ICE HSI Executive Assistant Director James Dinkins said, “Mr. Barrera and his co- conspirators stand accused of running one of the largest cocaine trafficking operations in history. His extradition to the United States represents a major victory for the rule of law. While Mr. Barrera may have thought he was safe hiding and conducting his illicit activities in South American countries, an international team of law enforcement agencies worked tirelessly and cooperatively towards bringing him to justice.”
As alleged in the Superseding Indictment filed in the Southern District of New York (S107 Cr. 862 (AKH)), the Superseding Indictment filed in the Eastern District of New York (S2 10 Cr. 288 (ILG)), the Superseding Indictment filed in the Southern District of Florida (S1 10 Cr. 20587 (DLG)), other documents filed in these cases, and information in the public record:
Since 1998, Barrera has run a cocaine manufacturing and trafficking syndicate which each month processed approximately 30,000 kilograms of raw cocaine base into about the same amount of cocaine powder – in total, up to approximately 400 tons of cocaine annually.
Barrera purchased the raw cocaine base or paste from the designated terrorist group Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia, or the “FARC”), which has been the world’s largest supplier of cocaine and which has engaged in bombings, massacres, kidnappings, and other acts of violence within Colombia.
Barrera converted the raw cocaine into powder at laboratories he owned and operated in an area of Colombia controlled by the since demobilized terrorist group, Autodefensas Unidas de Colombia (the “AUC”). For years, the AUC’s main political objective was to defeat the FARC in armed conflict, and it financed its terrorist activities through the proceeds of cocaine trafficking in AUC-controlled regions of Colombia.
Although Barrera purchased raw materials for cocaine production from the FARC, he was able to maintain his network of cocaine-processing laboratories in AUC-controlled territory, in part by paying monthly “taxes” to the AUC. The fees Barrera paid to the AUC also allowed him to safely move the processed cocaine through and out of Colombia, into locations on four continents – including into the U.S.
Barrera reaped tens of millions of dollars of profits from cocaine trafficking, which the laundered through illicit means.
The FARC and the AUC are both designated by the U.S. Department of State as Foreign Terrorist Organizations.
Barrera, 44, is charged in the Southern District of New York with one count of conspiring to distribute and manufacture cocaine knowing it would be unlawfully imported into the U.S. On that count, Barrera faces a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison.
Barrera is charged in the Eastern District of New York with one count of conspiracy to launder money. On that count, Barrera faces a maximum sentence of 20 years in prison.
Barrera is charged in the Southern District of Florida with one count of conspiring to import cocaine into the U.S. and one count of conspiring to manufacture and distribute cocaine knowing that it would be unlawfully imported into the U.S. On those counts, Barrera faces a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison.
Mr. Ferrer, Mr. Bharara, and Ms. Lynch praised the outstanding work of the OCDETF, working in cooperation with HSI New York’s El Dorado Task Force, the DEA’s Bogota Country Office, the DEA’s Caracas Country Office, the DEA’s Miami Field Division, the DEA’s New York Drug Enforcement Task Force – which is comprised of agents and officers of the DEA, the New York City Police Department, and the New York State Police – as well as HSI Bogota. Mr. Ferrer, Mr. Bharara, and Ms. Lynch, also thanked the Colombian National Police, the U.S. Marshals Service, and the U.S. Department of Justice’s Office of International Affairs for their ongoing assistance.
The Southern District of Florida case is being handled by that office’s Narcotics Unit. Assistant United States Attorney Adam Fels is in charge of the prosecution. The Southern District of New York case is being handled by that office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Jenna Dabbs, Benjamin Naftalis, and Andrea Surratt are in charge of the prosecution. The Eastern District of New York case is being handled by that office’s International Narcotics Strike Force. Assistant United States Attorneys Justin Lerer, Soumya Dayananda, and Amir Toossi are in charge of the prosecution.
The charges and allegations contained in the Indictments are merely accusations and the defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Man Sentenced in $3.3 Million Identity Theft Tax Refund Fraud SchemeRead the Press Release
Defendant Filed Approximately 400 Fraudulent Tax Returns Seeking Refunds
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, and Rafael P. Hernandez, Jr., Chief, North Miami Beach Police Department, announced that Charlton Escarmant, 29, of Miami, was sentenced yesterday on identity theft tax refund charges. At the sentencing hearing, U.S. District Judge Joan A. Lenard sentenced Escarmant to 94 months in prison, to be followed by 3 year of supervised release. A restitution hearing is scheduled for August 26, 2013 at 3:00 PM.
Escarmant was charged with co-defendant Arthy Icart for their participation in an identity theft tax refund scheme. On March 19, 2013, a jury convicted defendant Escarmant of one count of conspiracy to submit false claims to the Internal Revenue Service, one count of access device fraud, and two counts of aggravated identity theft. According to testimony and evidence presented at trial, some of the personal identification information used by Escarmant and Icart to file fraudulent tax returns was stolen from Tallahassee Community College’s (TCC) financial aid office. In fact, more than 3,200 names found on a computer in Escarmant’s possession came from TCC.
According to the evidence presented during trial, Escarmant filed tax returns using the stolen identification information and also in his own name and created false W-2 forms with fictitious employer information. Escarmant’s W-2 form falsely claimed that he was a veterinarian at Central Broward Animal Hospital. In fact, however, Escarmant never worked at the Central Broward Animal Hospital.
At the time of their arrest, Escarmant and Icart unlawfully possessed approximately 22 pre-paid tax debit cards in the names of other individuals. In total, during the course of the scheme, the defendant and his co-conspirator submitted approximately 400 fraudulent tax returns to the Internal Revenue Service, seeking more than $3.3 million in tax refunds.
Co-conspirator Arthy Icart was sentenced on April 5, 2013, after having pled guilty to charges of conspiracy to file fraudulent claims, access device fraud, and aggravated ID theft. U.S. District Judge Lenard sentenced Icart to a total of 70 months’ imprisonment followed by one year of supervised release. In addition, Icart was ordered to pay restitution of $1,387,774.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to IRS-CI and the North Miami Beach Police Department. Mr. Ferrer also thanked the Tallahassee Community College for their cooperation during this investigation. The case is being prosecuted by Assistant U.S. Attorneys Michael B. Nadler and Elina Rubin-Smith.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mason City Man to Federal Prison and Ordered to Pay over $300,000 in Restitution for Farm FraudRead the Press Release
A man who made false statements for purposes of influencing a financial institution was sentenced July 8, 2013, to two years in federal prison.
Raymond A. Schaefer, 41, from Mason City, Iowa, received the prison term after a March 21, 2013, guilty plea to making a false statement.
At the guilty plea, Schaefer admitted he obtained a promissory note and received a $435,000 FSA (Farm Service Agency) guaranteed line-of-credit through MidWestOne Bank. The note specified that FSA would guarantee 90% of the farm operating line-of-credit for the crop years 2006 through 2010. The terms of the loan required that the principle be paid down to $100 annually prior to advancing money for the next crop year, with accrued interest paid. The terms also required Schaefer to supply accurate periodic financial statements. In late 2007 and early 2008, the bank learned Schaefer was behind on his payments to various other debtors for farm inputs. In preparing the 2008 balance sheet, Schaefer provided information to the bank, misrepresenting the value and existence of his assets, in an attempt to convince the bank that his financial situation was better than it actually was (for example, Schaefer indicated that he had 68,000 bushels of corn and 4,000 bushels of soybeans, when in fact he had none). Schaefer gambled large amounts of money obtained from his FSA line of credit loan and other financing, much of which was previously deposited into his used car business checking account and then withdrawn from the account unbeknownst to his various lenders, including MidWestOne Bank. To fund his gambling, Schaefer depleted the balance of his car lot bank account and his farm account with MidWestOne Bank.
Schaefer was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Schaefer was sentenced to 24 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to make $370,803.89 in restitution, $157,587.43 to MidWestOne Bank and $213,216.46 to Farm Service Agency. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.Schaefer was released on the bond previously set and is to surrender to the United States Marshal on July 29, 2013.
The case was prosecuted by Assistant United States Attorney Jamie Bowers and United States Attorney Sean Berry. It was investigated by the U.S. Department of Agriculture-Office of Inspector General, the Farm Service Agency, and the Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-3047.
Manhattan, Brooklyn, and Miami U.S. Attorneys Announce Extradition of Colombian Narcotics KingpinRead the Press Release
Preet Bharara, Loretta E. Lynch, and Wifredo A. Ferrer – the United States Attorneys for the Southern District of New York (“SDNY”), Eastern District of New York (“EDNY”), and Southern District of Florida (“SDFL”), respectively – Michele M. Leonhart, the Administrator of the U.S. Drug Enforcement Administration (“DEA”), James Dinkins, the Executive Assistant Director of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), and Raymond W. Kelly, the Police Commissioner of the City of New York (“NYPD”), announced today the extradition of DANIEL BARRERA BARRERA, also known as “Loco,” a citizen of Colombia, to the U.S. on charges that for decades he manufactured hundreds of tons of cocaine annually in Colombia and trafficked it to various parts of the world, including the U.S., and laundered tens of millions of dollars in proceeds from that narcotics trafficking activity. BARRERA arrived in the Southern District of New York this afternoon. He will be presented and arraigned in the Southern District of New York before U.S. District Judge Alvin K. Hellerstein on July 10, 2013, at 11:00 a.m., and in the Eastern District of New York before U.S. District Judge I. Leo Glasser on July 11, 2013, at 3:30 p.m. Following his prosecution in New York, BARRERA will be presented and arraigned in the Southern District of Florida.
In March 2010, the U.S. Department of the Treasury’s Office of Foreign Assets Control designated BARRERA as a “Special Designated Narcotics Trafficker,” pursuant to the Foreign Narcotics Kingpin Designation Act. BARRERA was arrested in Venezuela on September 18, 2012. Thereafter, he was sent to Colombia, from where the U.S. sought BARRERA’s extradition. The extradition of BARRERA is the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by DEA and HSI. 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.
U.S. Attorney Preet Bharara said: “For more than a decade, as alleged, Daniel Barrera Barrera has operated at the center of a truly evil web spun between his narcotics trafficking organization and two violent and sworn enemy terrorist organizations – the AUC and the FARC. By purchasing raw cocaine paste from the FARC, which he processed in laboratories in areas controlled by the AUC, to whom he paid fees, Barrera’s behemoth cocaine organization reached an annual production rate of upwards of 400 tons, enriching itself and the two terrorist organizations it paid off, as the indictment describes. This was truly cocaine with blood in its background. With his arrival in the U.S., Barrera must now answer for his alleged crimes, and we will continue to work with our law enforcement partners, both here and abroad, to prosecute him and other alleged titans of the transnational drug trade.”
U.S. Attorney Loretta E. Lynch said: “As alleged in the three indictments on which he was extradited, Daniel “Loco” Barrera Barrera was the kingpin of a stunningly prolific Colombian drug cartel, which flooded the globe with its deadly product. Barrera also allegedly wrought destruction closer to home, working with not one but two terrorist organizations responsible for decades of death and destruction in Colombia, all to ensure his deadly business ran smoothly. His extradition to the United States marks the fall of the last don of an organization marked by its worldwide reach, ruthless criminality, and staggering profits. This investigation exemplifies the global cooperation necessary to combat international drug traffickers and our commitment to dismantle these criminal organizations from the highest levels down.”
U.S. Attorney Wifredo A. Ferrer said: “Daniel “Loco” Barrera Barrera’s arrest and extradition is the direct result of strong international cooperation with Colombian authorities. It also reflects the hard work and perseverance of our law enforcement partners – both at home and abroad – whose dedicated efforts led to the capture of one of the world’s most notorious drug traffickers. While Barrera evaded capture for several years, the time has finally come for him to answer for his crimes and face justice. As this case confirms, the United States will never tire in its pursuit of those who profit from the illegal drug trade.”
DEA Administrator Michele M. Leonhart said: “Daniel Barrera allegedly worked with both the FARC and AUC terrorist organizations in operating his drug trafficking syndicate, becoming one of the most prolific drug traffickers of the past twenty years. Charged with manufacturing upwards of 400 tons of cocaine a year, Barrera’s alleged impact on the global trade of cocaine was immense – but so was DEA’s response. Thanks to the cooperative efforts of our Colombian and U.S. law enforcement counterparts, Barrera’s criminal career is over as he now faces charges that may bring him a life behind bars.”
ICE HSI Executive Assistant Director James Dinkins said: “Mr. Barrera and his co-conspirators stand accused of running one of the largest cocaine trafficking operations in history. His extradition to the United States represents a major victory for the rule of law. While Mr. Barrera may have thought he was safe hiding and conducting his illicit activities in South American countries, an international team of law enforcement agencies worked tirelessly and cooperatively towards bringing him to justice.”
NYPD Commissioner Raymond W. Kelly said: “If any one case epitomizes the nexus between terrorism and drug trafficking and the destructive impact on Colombian society, this is it; not to mention the crime and suffering cocaine addiction has fueled on the demand-side of the equation in the streets of New York. Barrera’s extradition is a milestone, and we’re indebted to the detectives, agents, and prosecutors who’ve made it possible.”
As alleged in the Superseding Indictment filed in the Southern District of New York (S1 07 Cr. 862 (AKH)), the Superseding Indictment filed in the Eastern District of New York (S2 10 Cr. 288 (ILG)), the Superseding Indictment filed in the Southern District of Florida (S1 10 Cr. 20587 (DLG)), other documents filed in these cases, and information in the public record:
Since 1998, BARRERA has run a cocaine manufacturing and trafficking syndicate which each month processed approximately 30,000 kilograms of raw cocaine base into about the same amount of cocaine powder – in total, up to approximately 400 tons of cocaine annually.
BARRERA purchased the raw cocaine base or paste from the designated terrorist group Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia, or the “FARC”), which has been the world’s largest supplier of cocaine and which has engaged in bombings, massacres, kidnappings, and other acts of violence within Colombia.
BARRERA converted the raw cocaine into powder at laboratories he owned and operated in an area of Colombia controlled by the since demobilized terrorist group, Autodefensas Unidas de Colombia (the “AUC”). For years, the AUC’s main political objective was to defeat the FARC in armed conflict, and it financed its terrorist activities through the proceeds of cocaine trafficking in AUC-controlled regions of Colombia.
Although BARRERA purchased raw materials for cocaine production from the FARC, he was able to maintain his network of cocaine-processing laboratories in AUC-controlled territory, in part by paying monthly “taxes” to the AUC. The fees BARRERA paid to the AUC also allowed him to safely move the processed cocaine through and out of Colombia, into locations on four continents – including into the U.S.
BARRERA reaped tens of millions of dollars of profits from cocaine trafficking, which he laundered through illicit means.
The FARC and the AUC are both designated by the U.S. Department of State as Foreign Terrorist Organizations.
BARRERA, 44, is charged in the Southern District of New York with one count of conspiring to distribute and manufacture cocaine knowing it would be unlawfully imported into the U.S. On that count, BARRERA faces a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison.
BARRERA is charged in the Eastern District of New York with one count of conspiracy to launder money. On that count, BARRERA faces a maximum sentence of 20 years in prison.
BARRERA is charged in the Southern District of Florida with one count of conspiring to import cocaine into the U.S. and one count of conspiring to manufacture and distribute cocaine knowing that it would be unlawfully imported into the U.S. On those counts, BARRERA faces a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison.
Mr. Bharara, Ms. Lynch, and Mr. Ferrer praised the outstanding work of the OCDETF, working in cooperation with HSI New York’s El Dorado Task Force, the DEA’s Bogota Country Office, the DEA’s Caracas Country Office, the DEA’s Miami Field Division, the DEA’s New York Drug Enforcement Task Force – which is comprised of agents and officers of the DEA, the New York City Police Department, and the New York State Police – as well as HSI Bogota. Mr. Bharara, Ms. Lynch, and Mr. Ferrer also thanked the Colombian National Police, the U.S. Marshals Service, and the U.S. Department of Justice’s Office of International Affairs for their ongoing assistance.
The Southern District of New York case is being handled by that office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Jenna Dabbs, Benjamin Naftalis, and Andrea Surratt are in charge of the prosecution. The Eastern District of New York case is being handled by that office’s International Narcotics Strike Force. Assistant United States Attorneys Justin Lerer, Soumya Dayananda, and Amir Toossi are in charge of the prosecution. The Southern District of Florida case is being handled by that office’s Narcotics Unit. Assistant United States Attorney Adam Fels is in charge of the prosecution.
The charges and allegations contained in the Indictments are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Manhattan, Brooklyn, and Miami U.S. Attorneys Announce Extradition of Colombian Narcotics KingpinRead the Press Release
Preet Bharara, Loretta E. Lynch, and Wifredo A. Ferrer – the United States Attorneys for the Southern District of New York (“SDNY”), Eastern District of New York (“EDNY”), and Southern District of Florida (“SDFL”), respectively – Michele M. Leonhart, the Administrator of the U.S. Drug Enforcement Administration (“DEA”), James Dinkins, the Executive Assistant Director of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), and Raymond W. Kelly, the Police Commissioner of the City of New York (“NYPD”), announced today the extradition of DANIEL BARRERA BARRERA, also known as “Loco,” a citizen of Colombia, to the U.S. on charges that for decades he manufactured hundreds of tons of cocaine annually in Colombia and trafficked it to various parts of the world, including the U.S., and laundered tens of millions of dollars in proceeds from that narcotics trafficking activity. BARRERA arrived in the Southern District of New York this afternoon. He will be presented and arraigned in the Southern District of New York before U.S. District Judge Alvin K. Hellerstein on July 10, 2013, at 11:00 a.m., and in the Eastern District of New York before U.S. District Judge I. Leo Glasser on July 11, 2013, at 3:30 p.m. Following his prosecution in New York, BARRERA will be presented and arraigned in the Southern District of Florida.
In March 2010, the U.S. Department of the Treasury’s Office of Foreign Assets Control designated BARRERA as a “Special Designated Narcotics Trafficker,” pursuant to the Foreign Narcotics Kingpin Designation Act. BARRERA was arrested in Venezuela on September 18, 2012. Thereafter, he was sent to Colombia, from where the U.S. sought BARRERA’s extradition. The extradition of BARRERA is the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by DEA and HSI. 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.
U.S. Attorney Preet Bharara said: “For more than a decade, as alleged, Daniel Barrera Barrera has operated at the center of a truly evil web spun between his narcotics trafficking organization and two violent and sworn enemy terrorist organizations – the AUC and the FARC. By purchasing raw cocaine paste from the FARC, which he processed in laboratories in areas controlled by the AUC, to whom he paid fees, Barrera’s behemoth cocaine organization reached an annual production rate of upwards of 400 tons, enriching itself and the two terrorist organizations it paid off, as the indictment describes. This was truly cocaine with blood in its background. With his arrival in the U.S., Barrera must now answer for his alleged crimes, and we will continue to work with our law enforcement partners, both here and abroad, to prosecute him and other alleged titans of the transnational drug trade.”
U.S. Attorney Loretta E. Lynch said: “As alleged in the three indictments on which he was extradited, Daniel “Loco” Barrera Barrera was the kingpin of a stunningly prolific Colombian drug cartel, which flooded the globe with its deadly product. Barrera also allegedly wrought destruction closer to home, working with not one but two terrorist organizations responsible for decades of death and destruction in Colombia, all to ensure his deadly business ran smoothly. His extradition to the United States marks the fall of the last don of an organization marked by its worldwide reach, ruthless criminality, and staggering profits. This investigation exemplifies the global cooperation necessary to combat international drug traffickers and our commitment to dismantle these criminal organizations from the highest levels down.”
U.S. Attorney Wifredo A. Ferrer said: “Daniel “Loco” Barrera Barrera’s arrest and extradition is the direct result of strong international cooperation with Colombian authorities. It also reflects the hard work and perseverance of our law enforcement partners – both at home and abroad – whose dedicated efforts led to the capture of one of the world’s most notorious drug traffickers. While Barrera evaded capture for several years, the time has finally come for him to answer for his crimes and face justice. As this case confirms, the United States will never tire in its pursuit of those who profit from the illegal drug trade.”
DEA Administrator Michele M. Leonhart said: “Daniel Barrera allegedly worked with both the FARC and AUC terrorist organizations in operating his drug trafficking syndicate, becoming one of the most prolific drug traffickers of the past twenty years. Charged with manufacturing upwards of 400 tons of cocaine a year, Barrera’s alleged impact on the global trade of cocaine was immense – but so was DEA’s response. Thanks to the cooperative efforts of our Colombian and U.S. law enforcement counterparts, Barrera’s criminal career is over as he now faces charges that may bring him a life behind bars.”
ICE HSI Executive Assistant Director James Dinkins said: “Mr. Barrera and his co-conspirators stand accused of running one of the largest cocaine trafficking operations in history. His extradition to the United States represents a major victory for the rule of law. While Mr. Barrera may have thought he was safe hiding and conducting his illicit activities in South American countries, an international team of law enforcement agencies worked tirelessly and cooperatively towards bringing him to justice.”
NYPD Commissioner Raymond W. Kelly said: “If any one case epitomizes the nexus between terrorism and drug trafficking and the destructive impact on Colombian society, this is it; not to mention the crime and suffering cocaine addiction has fueled on the demand-side of the equation in the streets of New York. Barrera’s extradition is a milestone, and we’re indebted to the detectives, agents, and prosecutors who’ve made it possible.”
As alleged in the Superseding Indictment filed in the Southern District of New York (S1 07 Cr. 862 (AKH)), the Superseding Indictment filed in the Eastern District of New York (S2 10 Cr. 288 (ILG)), the Superseding Indictment filed in the Southern District of Florida (S1 10 Cr. 20587 (DLG)), other documents filed in these cases, and information in the public record:
Since 1998, BARRERA has run a cocaine manufacturing and trafficking syndicate which each month processed approximately 30,000 kilograms of raw cocaine base into about the same amount of cocaine powder – in total, up to approximately 400 tons of cocaine annually.
BARRERA purchased the raw cocaine base or paste from the designated terrorist group Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia, or the “FARC”), which has been the world’s largest supplier of cocaine and which has engaged in bombings, massacres, kidnappings, and other acts of violence within Colombia.
BARRERA converted the raw cocaine into powder at laboratories he owned and operated in an area of Colombia controlled by the since demobilized terrorist group, Autodefensas Unidas de Colombia (the “AUC”). For years, the AUC’s main political objective was to defeat the FARC in armed conflict, and it financed its terrorist activities through the proceeds of cocaine trafficking in AUC-controlled regions of Colombia.
Although BARRERA purchased raw materials for cocaine production from the FARC, he was able to maintain his network of cocaine-processing laboratories in AUC-controlled territory, in part by paying monthly “taxes” to the AUC. The fees BARRERA paid to the AUC also allowed him to safely move the processed cocaine through and out of Colombia, into locations on four continents – including into the U.S.
BARRERA reaped tens of millions of dollars of profits from cocaine trafficking, which he laundered through illicit means.
The FARC and the AUC are both designated by the U.S. Department of State as Foreign Terrorist Organizations.
BARRERA, 44, is charged in the Southern District of New York with one count of conspiring to distribute and manufacture cocaine knowing it would be unlawfully imported into the U.S. On that count, BARRERA faces a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison.
BARRERA is charged in the Eastern District of New York with one count of conspiracy to launder money. On that count, BARRERA faces a maximum sentence of 20 years in prison.
BARRERA is charged in the Southern District of Florida with one count of conspiring to import cocaine into the U.S. and one count of conspiring to manufacture and distribute cocaine knowing that it would be unlawfully imported into the U.S. On those counts, BARRERA faces a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison.
Mr. Bharara, Ms. Lynch, and Mr. Ferrer praised the outstanding work of the OCDETF, working in cooperation with HSI New York’s El Dorado Task Force, the DEA’s Bogota Country Office, the DEA’s Caracas Country Office, the DEA’s Miami Field Division, the DEA’s New York Drug Enforcement Task Force – which is comprised of agents and officers of the DEA, the New York City Police Department, and the New York State Police – as well as HSI Bogota. Mr. Bharara, Ms. Lynch, and Mr. Ferrer also thanked the Colombian National Police, the U.S. Marshals Service, and the U.S. Department of Justice’s Office of International Affairs for their ongoing assistance.
The Southern District of New York case is being handled by that office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Jenna Dabbs, Benjamin Naftalis, and Andrea Surratt are in charge of the prosecution. The Eastern District of New York case is being handled by that office’s International Narcotics Strike Force. Assistant United States Attorneys Justin Lerer, Soumya Dayananda, and Amir Toossi are in charge of the prosecution. The Southern District of Florida case is being handled by that office’s Narcotics Unit. Assistant United States Attorney Adam Fels is in charge of the prosecution.
The charges and allegations contained in the Indictments are merely accusations and the defendant is presumed innocent unless and until proven guilty.
US v. Daniel Barrera Barrera SDNY Indictment
US v. Daniel Barrera Barrera, et al EDNY Indictment
US v. Daniel Barrera Barrera, et al SDFL IndictmentMan Who Ran Multimillion Dollar Investment Fraud Scheme Sentenced to More Than Eight Years in PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, announced that GARRETT L. DENNISTON, 63, formerly of Sandy Hook, Conn., and Boothbay Harbor, Maine, was sentenced today by United States District Judge Janet Bond Arterton in New Haven 97 months of imprisonment, followed by three years of supervised release, for operating a multimillion dollar investment fraud scheme.
“This lengthy prison term is appropriate for an individual whose long-running scheme defrauded at least 50 victims, including close friends and family, of more than three million dollars,” stated Acting U.S. Attorney Daly. “Many investors were financially ruined. The investing public is urged to steer clear of similar ‘preferred’ investment deals, promises of risk-free investments and guarantees of a high rate of return.”
“Hopefully, today’s sentence will act as a deterrent to everyone who works in the investment world,” stated FBI Special Agent in Charge Mertz. “Those who handle investors’ money must always act in the best interests of clients and never to enrich themselves. Unfortunately, the defendant’s many victims suffered losses perhaps even more profound than those measured in dollars and cents.”
According to court documents and statements made in court, from approximately 2005 to 2012, DENNISTON defrauded individuals through a Connecticut company called ConsensusOne, LLC, by holding himself out to potential investors as operating a successful investment business specializing in mergers and acquisitions, and by convincing individuals to make investments in phony stock options or other similarly non-existent investments. During the scheme, DENNISTON told investors that their money would be used to invest in one of the companies that he or his investment business owned and, specifically, that their money would be used to purchase stock options (or promissory notes) convertible into the company’s stock at a substantial discount to the value of the stock on the date of conversion.
DENNISTON also told investors that the companies were on the verge of being sold or had already been sold in deals that were closing on an accelerated schedule. He further indicated that an investment was refundable if the deal did not close, and that he and his company would guarantee the investments, so that the investments were risk-free. DENNISTON also told people that the investment was being offered to them as part of a “friends and family” deal pursuant to which he had access to a limited pool of stock options that would yield a guaranteed return on investment.
In reality, DENNISTON did not invest his victims’ funds in stock options or in any other legitimate investments. Rather, he spent the money on his own personal and business expenses, as well as for other unauthorized uses. DENNISTON used some money for gifts to family members, and spent additional amounts on airfare, hotels, restaurants, country club memberships, golf and ski outings, mortgage and rent payments, cable and telephone bills, furniture, home renovation costs, and other personal living expenses.
Through this investment scheme, DENNISTON defrauded at least 54 victims out of a total of more than $3 million. Individual investment amounts ranged from a few thousand dollars to nearly $500,000.
DENNISTON concealed his fraudulent activities by preparing fake legal documents and forging signatures of those documents. At times, DENNISTON also used one investor’s funds to repay other investors.
DENNISTON has been detained since his arrest on September 19, 2012. On February 14, 2013, he pleaded guilty to one count of wire fraud.Judge Arterton ordered DENNISTON to pay restitution in the amount of $3,048,969.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut Securities, Commodities and Investor Fraud Task Force, notably the Greenwich Police Department. The case was prosecuted by Special Assistant United States Attorney Kerry L. Quinn and Assistant United States Attorney Michael S. McGarry.
The Connecticut Securities, Commodities and Investor Fraud Task Force investigates matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
Today’s announcement is part of efforts underway by President’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Louisville Businessman Guilty of Evading $355,331.24 in Employment TaxesRead the Press Release
– Concealed assets while using business accounts to fund personal aircraft travel, luxury vehicles and entertainment
LOUISVILLE, KY – Louisville Businessman Martin Twist pleaded guilty today in United States District court before Senior Judge Charles R. Simpson III to a single charge of willfully attempting to evade and defeat the payment of employment taxes, interest, and penalties totaling approximately $355,331.24, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the plea agreement, Twist, age 70, beginning in June 2004, directed various bookkeepers and controllers of his businesses (which included Blue Flame Energy Col., LLC; Cherokee Drilling Co., LLC; and Martin Twist Energy Co., LLC) to stop filing employment tax returns and paying over employment taxes, and he fired a bookkeeper and a controller who paid over employment taxes to the IRS against his direction. Beginning in or about June 2004, Twist concealed assets from the IRS through inter-account transfers in order to keep his business account balances low and prevent IRS collection enforcement activity.
In early 2004, Twist caused Blue Flame Energy Co., LLC, to be created in the name of a nominee owner in order to conceal the assets of Cherokee Drilling Co. from the IRS. He caused assets of Cherokee Drilling Company and Martin Twist Energy Co., LLC, to be transferred to Blue Flame Energy Co. and its nominee owner. At all times defendant Twist maintained control of Blue Flame Energy Co.
Beginning in August of 2004 Twist transferred real estate and business holdings to nominee owners in order to remove his name as owner and to prevent IRS collection enforcement activity. More particularly, he transferred assets owned and controlled by Cherokee Drilling Co. and Martin Twist Energy Co. to Joerhea Realty, LLC, and Beasley Realty, LLC. At all times Twist maintained control of the real estate companies. In 2007 and 2008 Twist sent multiple letters either personally or through a CPA to the IRS that falsely denied his ownership and control of Blue Flame Energy Co.
Further, from 2004 through 2008 Twist used business accounts to fund his personal life style including $20,000 to $40,000 in monthly expenses that included personal aircraft travel, extravagant dining, private school tuition, vacations, luxury vehicles, and entertainment expenses, all in a continuing effort to avoid payment of employment taxes to the IRS.
A grand jury meeting in Louisville, Kentucky Tuesday, February 7, 2012 returned the single count indictment against Twist. At sentencing, Twist will face up to five years in prison, a $250,000 fine and a term of three years of supervised release.
Sentencing is scheduled for October 18, 2013, at 1:30 pm, in Louisville, before Senior Judge Simpson.
This case is being prosecuted by Assistant United States Attorney Bryan Calhoun and was investigated by the IRS Criminal Investigations.
Little Eagle Woman Pleads Guilty to Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that Roxanne Spotted Horse, age 31, of Little Eagle, South Dakota, appeared before U.S. District Judge Charles B. Kornmann on July 1, 2013, and pled guilty to a Superseding Information that charged her 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 and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The conviction stems from an incident on January 24, 2013, in which Spotted Horse was socializing at her residence with the victim, among others. Spotted Horse and the victim had previously been in a dating relationship. An argument started between Spotted Horse and her victim, and as the argument became more intense, Spotted Horse grabbed a metal bar and hit the victim on the head. An ambulance was summoned and the victim received medical attention for his head injury.
The investigation was conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Spotted Horse was remanded to the custody of the U.S. Marshals Service pending sentencing, which has been set for September 23, 2013.
# # #Lincoln County Man Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
St. Louis, MO - MATTHEW M. HANSEN pled guilty to charges of attempting to entice minor boys to engage in sexually explicit conduct for him to videotape between 2007 and 2012.
Hansen, Winfield, MO, pled guilty to eight felony counts of attempted production of child pornography before United States District Judge Jean C. Hamilton, in St. Louis. Sentencing has been set for October 4, 2013.
Each count of attempted production of child pornography carries a penalty range of 15 to 30 years in prison 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 U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and St. Charles County Cyber Crime Unit. Assistant United States Attorney Rob Livergood is handling the case for the U.S. Attorney’s Office.