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26 August 2013
Box Elder Man Indicted for Using Computer to Engage in Criminal Sexual ConductRead the Press Release
United States Attorney Brendan V. Johnson announced that a Box Elder, South Dakota, man has been indicted by a federal grand jury for allegedly attempting to use a computer attached to the Internet to transfer obscene matter and to entice a female under the age of 16 to engage in criminal sexual conduct between March 28 and April 5, 2013.
Craig Joshua Weires, age 23, was indicted by a federal grand jury on July 23, 2013, for attempted enticement of a minor using the Internet and attempted transfer of obscene material to a minor. Weires appeared before U.S. Magistrate Judge Veronica L. Duffy on August 15, 2013, and pleaded not guilty to the indictment. The maximum penalty upon conviction is life imprisonment and a $250,000 fine. The charges are merely accusations and Weires is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rapid City Police Department, Pennington County Sheriff's Office, South Dakota Division of Criminal Investigation, Office of Special Investigations from Ellsworth Air Force Base, and Federal Bureau of Investigation. Assistant U.S. Attorney Sarah Collins is prosecuting the case. Weires was remanded to the custody of the U.S. Marshal. A trial date has not yet been set.Boone, Iowa Man Pleads Guilty to Meth and Firearm ChargesRead the Press Release
A man who conspired to distribute methamphetamine and possessed a firearm in furtherance of the drug trafficking conspiracy pled guilty August 13, 2013, in federal court in Sioux City.
James Edward Poole, 33, from Boone, Iowa, was convicted of one count of conspiring to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime.
At the plea hearing, Poole admitted his involvement in a conspiracy from 2012 through January 2013 that distributed more than 1000 grams of mixed methamphetamine which contained at least 150 grams of actual (pure) methamphetamine. On January 8, 2013, officers conducted a traffic stop of a vehicle occupied by Poole and his wife, Shannon Poole. During a search of the vehicle, officers located and seized about over 134 grams of actual (pure) methamphetamine, $377.74 in U.S. Currency, and a loaded handgun (namely a Kel-Tec .380). Poole admitted he had just obtained the methamphetamine from his source near Webster City, Iowa, and planned to distribute it to other person(s).
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Poole remains in custody of the United States Marshal pending sentencing. On the conspiracy conviction, Poole faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, a special assessment of $100, and five years up to life of supervised release following any imprisonment. On the firearm conviction, Poole faces a mandatory minimum sentence of 5 years’ imprisonment consecutive to any term imposed on the conspiracy conviction and a possible maximum sentence of life imprisonment, a $250,000 fine, a special assessment of $100, and up to five years of supervised release.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, Webster City Police Department, Hamilton County Sheriff’s Office, Wright County Sheriff’s Office, Iowa State Patrol, and 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 13-3003.
Bank Chairman Pleads Guilty to using Public Funds to Purchase Luxury Vacation CondoRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., bank chairman pleaded guilty in federal court today to misleading federal investigators about his use of $381,000 in bank bailout funds to purchase a luxury condominium in Fort Myers, Fla.
“At a time when many other Americans were losing their homes, he was siphoning off public funds to buy a luxury vacation condo in Florida,” Dickinson said. “These federal funds were intended to help stablilize the economy during a fiscal crisis. Instead, this disgraced business leader took advantage of the situation to benefit himself and other bank executives, then lied to federal investigators in an attempt to hide his scheme.”
Darryl Layne Woods, 48, of Columbia, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth to a federal information that charges him with making a false writing.
Woods was the chairman and chief financial officer of Mainstreet Bank in Ashland, Mo. He was also the chairman, president and majority shareholder of Calvert Financial Corporation, the bank holding company for Mainstreet Bank.
“The purpose of TARP is to promote financial stability and lending in a time of national economic crisis, not to bankroll the purchase of luxury vacation properties for bank executives,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “When SIGTARP required Mainstreet Bank to disclose how it spent TARP funds, bank Chairman and CFO Woods failed to tell the truth that within days of receiving the TARP funds, the bank spent more than a third of the funds purchasing a waterfront condo in Florida for his and other executives’ use. SIGTARP and our law enforcement partners will hold accountable and bring to justice those guilty of crimes related to TARP.”
In November 2008, Calvert Financial applied to receive funds through the Troubled Asset Relief Program (TARP). TARP was created through the Emergency Economic Stabilization Act of 2008. The purpose of TARP was to provide capital to financial institutions to enable them to build their capital base and to increase the flow of financing to businesses and individuals. The U.S. Department of Treasury approved the request for TARP funds, and in January 2009 Calvert Financial received $1,037,000 through the TARP Capital Purchase Program.
Woods admitted today that he used $381,487 of the TARP funds to purchase the luxury condominium on Feb. 2, 2009.
The Special Inspector General for the Troubled Asset Relief Program (SIGTARP) was required to supervise, audit and investigate institutions that received TARP funds. SIGTARP sent letters to various financial institutions seeking specific information as to how TARP funds were used by the institutions. Woods responded to that inquiry in a letter dated Feb. 10, 2009.
Woods failed to disclose in his letter that a significant portion of TARP funds had been used to acquire the condominium. Failure to disclose the purchase of the condominium was a material misrepresentation of facts relating to the true use of TARP funds.
Under the terms of today’s plea agreement, Woods is required to desist from any further involvement in banking and may not serve as an officer, director, employee or affiliated party of any financial institution or agency. The government agrees not to bring any charges against his wife, Jackie Woods (Ralston), for any criminal offenses arising from the facts known by the government as a result of this investigation.
Under federal statutes, Woods is subject to a sentence of up to one year in federal prison without parole, plus a fine up to $100,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and the Federal Reserve Board – Office of Inspector General.
Austin Man Pleads Guilty to Bank Robbery and Firearms ChargesRead the Press Release
In Austin, 34-year-old Antonio Cervantez faces federal prison time after pleading guilty to federal charges stemming from a bank robbery in May announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez, San Antonio Division.
Appearing before United States Magistrate Judge Mark Lane this afternoon, Cervantez pleaded guilty to one count of bank robbery and one count of possession of a firearm during a crime of violence. By pleading guilty, Cervantez admitted that on the afternoon of May 29, 2013, he robbed the Bank of America located on West Parmer Lane in Austin. A bank customer, who witnessed the robbery from the drive-through banking lane, called the police and followed Cervantez after he fled the scene. Cervantez drove to his residence in the 4300 block of Northridge where authorities subsequently arrested him and recovered approximately $30,000 stolen from the bank and a .380 caliber firearm.
Cervantez, who has remained in custody since his arrest on May 29, 2013, faces up to 25 years in federal prison on the bank robbery charge and a mandatory seven year consecutive prison term for the firearm charge. He will be sentenced at a later date by United States District Judge Sam Sparks.
This case was investigated by the Austin Violent Crime Fugitive Task Force. The Task Force is made up of investigators from the Federal Bureau of Investigation, Austin Police Department and the Round Rock Police Department. Assistant United States Attorney Gregg N. Sofer is prosecuting this case on behalf of the Government.
Anchorage Man sentenced to 60 months in prison for felon in possession of firearm convictionRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a man from Anchorage was sentenced in federal court in Anchorage for one count of being a felon in possession of a firearm.
Menes Weightman, 34, from Anchorage, Alaska, was sentenced August 23, 2013, by U.S. District Court Judge Sharon L. Gleason to 60 months in prison and 3 years of supervised release. Weightman had previously pled guilty to count one of an indictment charging him with being a felon in possession of a firearm.
According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, in December 2012, Anchorage Police responded to a residence in Anchorage to investigate a report of an individual being threatened with a firearm. Weightman was contacted at the residence and was found in possession of a stolen sawed off shotgun, a .38 caliber revolver, and ammunition. Weightman has 3 prior felony convictions punishable by more than one year imprisonment, and is prohibited under federal law from possessing guns.
Prior to imposing a sentence, Judge Gleason informed Weightman that she hoped this sentence would deter him from committing similar crimes in the future and that this would protect the public from Weightman’s criminal behavior while he is in prison.
Ms. Loeffler commended the Anchorage Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Weightman.Albuquerque Man Pleads Guilty to Robbing Bank of Albuquerque Branch in May 2013Read the Press Release
ALBUQUERQUE – Richard Sedillo, 36, of Albuquerque, N.M., pleaded guilty this morning to a bank robbery charge under a plea agreement with the U.S. Attorney’s Office.
Sedillo was arrested on May 30, 2013, based on a criminal complaint charging him with bank robbery and subsequently was indicted on the same charge on June 12, 2013. According to the indictment, Sedillo robbed the Bank of Albuquerque branch located in the Albertson’s Supermarket at 10131 Coors Blvd. NE in Albuquerque, on May 30, 2013.
During his plea hearing, Sedillo entered a guilty plea to the indictment. In his plea agreement, Sedillo admitted that on May 30, 2013, he approached a bank teller at the Bank and handed the teller a note that “told the teller to hand me money or else I would shoot.” After the teller gave money to Sedillo, Sedillo left the Bank.
Court records reflect that the teller observed Sedillo get into a truck and provided the truck’s license plate number to law enforcement authorities. That information led to Sedillo’s arrest later that day as well as the recovery of most of the money taken by Sedillo during the bank robbery.
Sedillo has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Sedillo faces a maximum sentence of 20 years in prison.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney Paige Messec.
Aberdeen Man Charged with False Crop Insurance ClaimsRead the Press Release
First Assistant United States Attorney Randy J. Seiler announced that an Aberdeen, South Dakota, man has been indicted by a federal grand jury for three counts of false crop insurance claims.
Nickolas Berbos, a/k/a Nikolas Berbos, age 52, was indicted by a federal grand jury on August 20, 2013. He appeared before U.S. Magistrate Judge William D. Gerdes on August 22, 2013, and pled not guilty to the indictment. The maximum penalty upon conviction on each count is up to 30 years in custody, a $1,000,000 fine, or both; 5 years of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
For each of the years 2009, 2010 and 2011, Berbos allegedly made false statements and false reports by over-valuing land, property and securities for the purpose of influencing the Federal Crop Insurance Corporation, in that he submitted one or more claims for prevented planting indemnity payments knowing he was ineligible for such payment.
The charge is merely an accusation and Berbos is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Department of Agriculture. Assistant U.S. Attorney Ann M. Hendrickson is prosecuting the case.
Berbos was released pending trial. A trial date has not been set.
25 August 2013
Columbus Woman Sentenced for Embezzling HUD Program Funds, Filing False Income Tax ReturnsRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCOLUMBUS – Wendy Harper, 44, of Columbus, Ohio was sentenced in U.S. District Court to 24 months in prison, three years of supervised release, and ordered to pay restitution in the amounts of $588,121.46 to the U.S. Department of Housing and Urban Development (HUD) for embezzling HUD program funds from her employer, and $126,345.36 to the Internal Revenue Service (IRS) for filing a false federal income tax return.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Brad Geary, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General, and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation announced the sentence handed down today by U.S. District Judge Gregory L. Frost.
According to court documents, Harper was responsible for managing payroll and payment functions for her employer, Harvest Management Group, Inc., which managed more than 900 units for elderly and disabled people who qualify for HUD assistance. Harper manipulated the payroll system to give herself unauthorized salary increases and unauthorized mileage reimbursements between 2009 and 2012. According to calculations made by criminal investigators in this case, Harper would have had to have driven more than 1,200,000 miles in order for the mileage reimbursements to have been legitimate.
Harper pleaded guilty to the aforementioned charges on February 6, 2014. In her plea agreement, Harper acknowledged that the U.S. showed the amount of money she embezzled was $588,121.46 and that she concealed her crime by filing false federal income tax returns for 2009, 2010 and 2011, on which she failed to report the HUD program funds she stole. Harper’s theft of these program funds contributed to Harvest Management Group, Inc. having difficulties maintaining the properties to minimum HUD standards and paying its property taxes.
U.S. Attorney Stewart commended the investigation by HUD and the IRS, the Reynoldsburg Police who referred the case for federal investigation, and Assistant U.S. Attorney Dale E. Williams Jr., who represented the United States in this case.
Anniston Man Arrested and Charged with Murder for HireRead the Press Release
BIRMINGHAM -- An Anniston man has been charged in federal court with using a telephone and a motor vehicle in an effort to hire someone to kill a man he suspected of raping his wife, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
Federal officials arrested ALLEN WAYNE DENSEN MORGAN, 29, on Sunday in Oxford, Ala., after he told undercover officers, whom he believed to be members of the Ku Klux Klan, that he would pay them to murder a Munford man, according to a federal criminal complaint filed today in U.S. District Court. Morgan was in the custody of U.S. Marshals on Monday.
Morgan talked to a man by phone on Aug. 22, who identified himself as a KKK member, and the two men arranged the Sunday meeting at an Oxford restaurant to discuss payment for the murder-for-hire, according to the complaint. In the Aug. 22 phone conversation, Morgan made explicit threats of how he wanted the man to be tortured and to die a slow, painful death, according to the complaint. Morgan also said he had already confronted the man near his Munford residence and fired several shots toward him to intimidate him, according to the complaint.
The FBI is investigating the case.
23 August 2013
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Shawn Fox, 28, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of bank robbery with the use of a firearm. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 11/25/2013.This investigation was conducted by the Federal Bureau of InvestigationThis case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Rickey Hemphill, 20, of Riverdale, Illinois, and Timothy Whitfield, 21, of South Bend, Indiana, members of the criminal enterprise Cash Out Boyz, a violent and dangerous gang operating in South Bend during 2010 through 2012, were sentenced by District Judge Robert L. Miller, Jr. this week.Hemphill was sentenced to 174 months of imprisonment and 3 years of supervised release after pleading guilty to the felony offense of racketeering.Whitfield was sentenced to 320 months of imprisonment and 10 years of supervised released after pleading guilty to the felony offense of racketeering and carrying and using a firearm during drug trafficking and a crime of violence.
According to documents filed in this case, members of the COB, including Hemphill and Whitfield, attempted to commit and threatened to commit acts of violence, including murder, attempted murder, robbery and assault in order to protect and expand the enterprise’s criminal operations. Those criminal operations included robbery and illegal trafficking in Ecstasy and marijuana.During his time with the organization, Hemphill was involved in numerous violent altercations with rival gang members which included aggravated assault, exchanging gunfire, public retaliation and distribution of marijuana. Whitfield also had numerous violent altercations with rival gang members which led to shootings.Whitfield has prior convictions for hit and run – leaving the scene (2010), false informing and resisting arrest (2010), theft (2010), and aggravated battery (2011). This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the South Bend Police Department.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Deneen Lewis, 42, of South Bend, Indiana, was sentenced by District Judge Jon E. DeGuilio to serve 24 months of imprisonment, 2 years of supervised release and $16,603 in restitution after pleading guilty to the felony offense of theft of government property.According to documents filed in this case, from 2010 to 2012, Lewis was receiving the Supplemental Social Security Income payment for her child.At the time that Lewis established herself as the payee, her child did not live with her.Lewis used the payments for personal purchases not intended for the recipient. This case was the result of an investigation by the Social Security Administration.This case was prosecuted by Assistant United States Attorney Barbara Brook.
Gabriel Franco, 31, of Mishawaka, Indiana, was sentenced by District Judge Jon E. DeGuilio to serve 6 months of imprisonment, 6 months location monitoring on home detention and 3 years supervised release after pleading guilty to the felony offense of manufacturing marijuana.According to documents filed in this case, in 2012, Franco was running a marijuana grow operation out of his home. This case was the result of an investigation by Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
The following Indictments were returned on August 22, 2013:
Antoine McClain, 31, of East Chicago, Indiana, was charged with possession of a firearm and ammunition by a convicted felon.This charge was filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force and the East Chicago Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Nicholas Padilla.
Turrell Anderson, 41, of East Chicago, Indiana, was charged with possession of a firearm by a convicted felon.This charge was filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Chicago Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Thomas McGrath.
Javante Toran, 21, of Hammond, Indiana, was charged with possession of a firearm by a convicted felon.This charge was filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney David Nozick.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
PLEAS:
Lamar Johnson, 26, of Minneapolis, Minnesota, pled guilty before Chief Judge Philip Simon to the felony offense of transportation of a minor with the intent that she engage in prostitution.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation and the Indiana State Police.This case is being prosecuted by Assistant United States Attorney Jill Koster.
Tajuan Allen, 37, of Gary, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of selling loaded firearms to a felon.Sentencing has been set for 11/19/13.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force.This case is being prosecuted by Assistant United States Attorney David Nozick.
Tyrone Benson, 38, of Hammond, Indiana, pled guilty before Senior District Judge James Moody to the felony offense of possession of a firearm by a convicted felon.This charge was filed as a result of an investigation by the Drug Enforcement Administration HIDTA Task Force.This case is being prosecuted by Assistant United States Attorney David Nozick.
Manuel Montalvo, 39, of East Chicago, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of filing a false tax return.Sentencing has been set for 11/5/13.This charge was filed as a result of an investigation by the Internal Revenue Service and the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Gary Bell.
Tiana Williams, 19, of Gary, Indiana, pled guilty before Senior District Judge James Moody to the felony offense of making false statements in the acquisition of a firearm.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force and the Lake County Police Department.This case is being prosecuted by Assistant United States Attorney Nicholas Padilla.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Eugene Baber, Jr., 29, of Gary, Indiana, was sentenced by Chief Judge Philip Simon to 42 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm and ammunition by a convicted felon.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force and the Gary Police Department.This case was prosecuted by Assistant United States Attorney Jacqueline Jacobs.
Chanel Bandy, 35, of Merrillville, Indiana, was sentenced by Senior District Judge James Moody to 2 years of probation after pleading guilty to the felony offense of assisting in the preparation of false/fraudulent tax returns.According to documents filed by the government, Bandy worked for Quick Sam Tax Refund and was encouraged to and did prepare and file fraudulent tax returns to obtain grossly inflated refunds for her clients, to bring in business and fees for her employer, and to obtain cash tips for her own financial gain.Losses directly tied to Bandy’s preparation of fraudulent tax returns as of the date of her guilty plea was $87,784. This case was the result of an investigation by the Internal Revenue Service.This case was prosecuted by Assistant United States Attorney Jill Koster.
Joseph Jamal Smith, 20, of Chicago, Illinois, was sentenced by Senior District Judge James Moody to 24 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed by the government, Smith has a prior conviction for aggravated unlawful use of a weapon. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Thomas McGrath.
Luis Yanez, 41, of Lorain, Ohio, was sentenced by Senior District Judge James Moody to 46 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of conspiracy to possess with the intent to distribute cocaine.This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Joshua Kolar.
Washington State Organizations Receive Federal Grants to Combat Sexual Violence and Improve Drug TreatmentRead the Press Release
Two federal grants from the U.S. Department of Justice are aimed at intervening in the lives of those struggling with drug abuse or sexual or domestic violence, announced U.S. Attorney Jenny A. Durkan. The largest grant, more than $975,000, goes to the King County Sexual Assault Resource Center (KSARC) to provide services to youth and young adults who have been impacted by domestic violence, sexual assault, dating violence or stalking. The second grant, to the Washington State Department of Social and Health Services (DSHS) is aimed at supporting drug treatment for offenders in Washington’s jails and prisons. The $150,000 grant is from DOJ’s Bureau of Justice Assistance.
“These grants recognize the quality work being done in Washington to build a better future. Preventing domestic violence and stalking, and helping victims is critical to building safe communities and strong adults. KSARC has long been a national leader on these issues,” said U.S. Attorney Jenny A. Durkan. “As Attorney General Eric Holder noted last week, we also must provide services such as drug treatment to allow those reentering society from prison the best chance at success.”
The grant from DOJ’s Office of Violence Against Women (OVW) is designed to support comprehensive child- and youth-centered prevention, intervention, treatment, and response strategies to more fully address sexual assault, domestic violence, dating violence, and/or stalking. The grant supports training for professionals, school based strategies, services for non-abusive parents and coordinating community responses. This project also supports innovative projects that engage men and boys to act as allies with women and girls to address sexual assault, domestic violence, dating violence, and/or stalking. The King County Sexual Assault Resource Center will implement this comprehensive project which focuses on sexual assault. The primary targeted age groups include youth and young adults, ages 13-24 years old, with a special focus on the homeless and runaway youth population, LGBTQ and the Latino population.
The grant to DSHS will support the Residential Substance Abuse Treatment (RSAT) program in the state’s jails and prisons. The goal of the RSAT program is to break the cycle of drugs and violence by reducing the demand for, use, and trafficking of illegal drugs. RSAT enhances the capability of states and units of local government to provide residential substance abuse treatment for incarcerated inmates; prepares offenders for their reintegration into the communities from which they came by incorporating reentry planning activities into treatment programs; and assists offenders and their communities through the reentry process through the delivery of community-based treatment and other broad-based aftercare services.
Washington State Awarded Nearly $5 Million to Enhance Criminal JusticeRead the Press Release
The U.S. Justice Department today awarded nearly $5 million in grants to improve criminal justice in Washington State, announced U.S. Attorney Jenny A. Durkan. The largest grant, $3.6 million, will be funneled through the Washington State Department of Commerce. An advisory council made up of law enforcement, corrections, treatment and prevention professionals at the local, state and federal level selects the grant recipients throughout the state. Individual police departments also received $1.3 million in direct grants, and the University of Washington received more than $247,000 for its Wrongful Conviction Review Program.
“These Byrne grants, named for a young police officer who lost his life in the line of duty, are critical to the mission of our local police departments,” said U.S. Attorney Jenny A. Durkan. “These grant awards are key to helping police forces with scarce resources so they can better protect public safety.”
The City of Seattle and surrounding jurisdictions (Auburn, Bellevue, Burien, Federal Way, Kent, King County, Renton, Seatac, Seattle and Tukwila) applied together for the largest grant: $635,618. The money will go to a variety of law enforcement programs aimed at preventing and reducing crime and providing services to victims. Tacoma and surrounding jurisdictions (Tacoma Human Services, Pierce County Sheriff, Pierce County Prosecutor, Pierce County Superior Court and the Pierce County Department of Assigned Counsel) also did a combined application. The Tacoma group was awarded $286,619 for various community-based policing and prosecution programs. Priorities include youth violence, crime prevention and community policing.These are the other direct Byrne grants awarded today:
- Skagit County $10,050 for their Victim Offender Meeting Program.
- Bellingham $35,159 for their Active Shooter training for law enforcement agencies in the area to increase officer safety, improve integrated public safety response, and to save lives.
- Everett $54,339 to purchase a variety of equipment including trauma kits, SWAT training, ballistic shields, license plate readers and life vests.
- Clark County $92,769 and surrounding jurisdictions will use the grant for equipment and technology including a crime reporting and analysis system, ammunition, protective gear and a criminal and jail records system
- Thurston County $31,922 for computer equipment; case management transition and implementations; visual aid equipment; and training.
- University Place $10,323 to support community-based programs. Funds will be used for overtime and to augment crime prevention programs concerning personal and property safety.
- Snohomish County $41,155. The Sheriff's Office will use grant funds to support overtime costs incurred for training.
- Bremerton $25,688 to preserve the community resource specialist who oversees the landlord notification, neighborhood watch, and crime prevention programs in the community.
- Lakewood $59,756 to target the increasing crime of copper theft and identify and eradicate illegal scrap metal shops operating in the area.
- Kitsap County $53,590 to obtain new equipment and technology to improve service and provide a safe environment for officers and the community.
Significant funding, $247, 593, was awarded today to the University of Washington Wrongful Conviction Review Program, known as the Innocence Project Northwest. The Program provides high quality and efficient representation for potentially wrongfully convicted defendants in post-conviction claims of innocence. The goals of this initiative are to: provide quality representation to those who may have been wrongfully convicted; alleviate burdens placed on the criminal justice system through costly and prolonged post-conviction litigation; and identify, whenever possible, the actual perpetrator of the crime.
The Byrne Grants are named in honor of New York City Police Officer Edward R. Byrne, who was killed in the line of duty on February 26, 1988. Officer Byrne was just 22-years-old. The Department of Justice's Bureau of Justice Assistance (BJA) administers this program, which allows state and local governments to support a broad range of activities to prevent and control crime and to improve the justice system.
Two Individuals Arrested for Health Care FraudRead the Press Release
SAN JUAN, P.R. – On August 22, 2013, a Federal grand jury returned an indictment against two individuals for conspiracy to commit health care fraud, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The investigation was led by the Department of Health and Human Services, Office of Inspector General (HHS-OIG), with the collaboration of the Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), the Federal Bureau of Investigations (FBI) and the Puerto Rico Police Department.
Carlos I. Rivera-Torres, President of CEM Puerto Rico Health Services, Inc. (CEM) and Alpha-Omega Wound Care (Alpha-Omega) and Pedro Rivera-Rivera, President of New Center Medical Supply, Inc. (New Center), are charged in a 25-count indictment for conspiracy to commit health care fraud and a forfeiture allegation of $1,741,090.08. The government seeks to forfeit two bank accounts, CEM Office Building in Caguas, PR and a property in Urb. Sabanera in Cidra, PR.
The indictment alleges that from on or about June 18, 2008 through on or about March, 2012, CEM and New Center submitted at least 710 false and fraudulent claims to Medicare totaling approximately $2,457670.00, seeking reimbursement for Durable Medical Equipment (DME) including collagen wound dressings that were misbranded, causing Medicare to disburse approximately $1,741,090.08.
It was part of the scheme and artifice to defraud that Rivera-Torres and other unindicted employees of Alpha-Omega, at their premises, in a room that was used for this activity, removed some of the 8x8 inch Helicoll collagen wound dressings from their primary unlabeled pouches, cut them into pieces of approximately 4x4 inch and 2x2 inch and repacked them in unlabeled plastic and foil material, contrary to the manufacturer's product instructions ("Sterility Guaranteed in Unopened, Undamaged Package. To Be Used for One Procedure Only").
Those repacked 4x4 inch and 2x2 inch collagen wound dressings, which were cut by using common household scissors, some of them with rust, were provided to patients by representatives of Alpha-Omega or CEM inside unlabeled pouches created in a converted garage located at the premises of Alpha-Omega.
Both defendants also face three counts for soliciting and receiving kickbacks in relation to the Medicare Program. Defendant Rivera-Torres also faces charges of misbranding and adulterating medical devices with intent to mislead and defraud and money laundering.“As part of the nation’s health care system, Medicare serves vulnerable populations,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “These individuals jeopardized the health of injured people who needed the sterile collagen wound dressings. Today’s arrests by HHS-OIG agents and our law enforcement partners show that we will not tolerate criminals who engage in fraudulent schemes which deplete the Medicare program of funds in order to enrich themselves.”
Thomas O’Donnell, Special Agent in Charge of the Office of Inspector General’s New York Regional Office which also covers Puerto Rico stated: “HHS/OIG works diligently to investigate allegations of Medicare fraud. Today's arrests involving Durable Medical Equipment (DME) fraud demonstrate our resolve to bring these subjects to justice. Our efforts, along with the US Attorney's Office and our Law Enforcement partners, have made a dramatic reduction on the total dollars billed and paid for DME in Puerto Rico.”
HHS-OIG was the lead agency which conducted the investigation, with the collaboration of FDA, FBI, and PRPD. The case is being prosecuted by Special Assistant U.S. Attorney Wallace A. Bustelo and Assistant U.S. Attorney Héctor Ramírez-Carbó.
If found guilty, the defendants could face a possible sentence of up to 10 years in prison for the Health Care Fraud offense. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Turnberry Embezzler Sentenced to over Four Years in PrisonRead the Press Release
LAS VEGAS, Nev. – A man who conspired with a former controller to embezzle millions from the company that owned or developed the Residences at MGM, Town Square shopping center, Turnberry Place, Turnberry Towers, and the Stirling Club in Las Vegas, was sentenced today to 51 months in prison, three years of supervised release, and ordered to pay approximately $3.7 million in restitution, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Rocco Lazazzaro, 55, of Las Vegas, was sentenced by U.S. District Judge Gloria M. Navarro. Lazazzaro pleaded guilty in May to conspiracy to commit wire fraud. According to his guilty plea agreement, from about May 17, 2007, to about Jan. 12, 2012, Lazazzaro and Hope Ippoliti, 51, the former controller for Turnberry Associates, conspired to steal more than $3.7 million dollars from Turnberry and its affiliates.
“Through this embezzlement scheme, Mr. Lazazzaro and Ms. Ippoliti victimized not only Turnberry Associates in the amount of $5.6 million, but caused irreparable harm and financial damage to the many victims and business entities employed and supported by Turnberry Associates,” said United States Attorney Bogden. “It is truly sad that the greed and self-indulgent criminal conduct of Mr. Lazazzaro continues to result in harm to so many other innocent victims.”
Ippoliti created fund transfer requests containing false information that the funds were intended for business-related purposes when she and Lazazzaro actually intended to withdraw the funds for personal use. Ippoliti faxed or emailed the fund transfer requests from Nevada to Turnberry Associates in Florida to cause the transfer of funds into Bank of America accounts over which she had signatory authority. Ippoliti and Lazazzaro deposited and cashed checks and cashier’s checks drawn on Bank of America bank accounts belonging to Turnberry Associates and its affiliates.
The total losses to Turnberry Associates and its affiliates are a total of $5.6 million. According to Lazazzaro’s guilty plea agreement, he was directly involved in causing approximately $3.7 million of those losses. The sentencing memorandum filed by the government states that Lazazzaro used the stolen monies for gambling and drug use.
Lazarro has four prior felony convictions and numerous misdemeanor convictions, many of which involved violence or threats of violence against others through the use or threatened use of fire, knives, or blunt objects. In 1986, while on probation for a 1980 felony grand theft conviction, he was convicted of committing five robberies in addition to vicious assaults and was sentenced to 10 to 20 years in prison. He was discharged from parole one year before committing the Turnberry embezzlement crimes.
Ippoliti pleaded guilty in March to conspiracy to commit wire fraud resulting in total losses of $5.6 million dollars, and is scheduled to be sentenced on Sept. 19, 2013, at 9:00 a.m. before U.S. District Judge Gloria M. Navarro.
The case was jointly investigated by the FBI and the United States Secret Service and is being prosecuted by Assistant U.S. Attorney Christina M. Brown.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Three from New York Charged with Offering to Sell WomenRead the Press Release
NORFOLK, Va. – Prince Lee, 20, Henry Olson, 21, and Arielle Pierre, 21, all from New York, have been indicted by a federal grand jury on charges of conspiracy, transportation for prostitution and coercion and enticement.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia and Royce E. Curtin, Special Agent in Charge, Federal Bureau of Investigation Norfolk Office, made the announcement.
Lee, Olson, and Pierre all face a maximum penalty of 20 years if convicted.
According to the indictment, on May 15 2013, Prince Lee and a young woman posted an ad on craigslist.com in Hampton Roads offering to sell the woman as a “sex slave” for $10,000. The Virginia Beach Police Department was monitoring the site and came across the ad and responded. The undercover officer spoke with Prince Lee, of New York, and the young woman and they agreed to sell three women for approximately $225,000. They agreed to meet in Virginia Beach on June 1st. Prince Lee and Henry Olson recruited Jane Doe 1, a 30 year-old also from New York, and told the woman she would receive $10K just to hang out with a friend of Prince Lee’s in Virginia. After much persuasion, she agreed. Arielle Pierre and Prince Lee recruited Jane Doe 2 also to spend a few hours with the man. Neither of the women was told that they were being “sold” to the man. Lee, Olson, Pierre and two others drove with the Jane Does from New York and arrived in Virginia Beach on the morning of June 1. Under observation by the police, Lee and Pierre were seen yelling at and grabbing the Jane Doe 2, trying to force the woman to remain and go to the “date.” Jane Doe 2 eventually ran into a nearby hotel, where employees hid her in the back room. Prince Lee also threatened to desert Jane Doe 1 in Virginia and throw away her car keys if she did not go forward with the plan. In the afternoon of June 1, the UC arrived for the “date” and all defendants were arrested.
This case was investigated by the Virginia Beach Police Department and Federal Bureau of Investigation. Assistant United States Attorney Elizabeth Yusi is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.Texas Tax Preparer Is Permanently Barred from Tax Preparation for Allegedly Falsifying Returns for Overseas Customers and Impeding AuditsRead the Press Release
The Justice Department announced that yesterday a federal court in Ft. Worth, Texas permanently barred Karena Mondrianh, of Southlake, Texas, from preparing tax returns and from operating a tax-preparation business. Mondrianh consented to entry of the preliminary injunctions without admitting the allegations against her.
In its complaint, the government alleged that Mondrianh prepared fraudulent tax returns understating customers’ income by inventing – sometimes without customers’ knowledge – false business expenses and by falsely claiming that customers’ income was exempt from tax. According to the complaint most of Mondrianh’s customers work overseas for defense contractors. The permanent injunction order was signed by Judge John H. McBryde of the U.S. District Court for the Northern District of Texas.
The complaint further alleged that Mondrianh provided false information to the Internal Revenue Service (IRS) in improper attempts to delay IRS audits of customers. She also allegedly urged a customer to lie to an IRS agent in order to forestall an IRS audit. For more information about this complaint visit www.justice.gov/tax/2013/txdv13690.htm .
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2013 , which can be viewed at www.irs.gov/uac/Newsroom/IRS-Releases-the-Dirty-Dozen-Tax-Scams-for-2013 . In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website at www.justice.gov/tax/taxpress2013.htm.
Tennessee Man sentenced to 10 and a half years in prison for distribution of Child PornographyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Tennessee man was sentenced in federal court in Anchorage for two counts of distributing child pornography.
Matthew Bren Goodlett, 33, of Knoxville, Tennessee, was sentenced yesterday by Chief U.S. District Court Judge Ralph R. Beistline, to 126 months in prison, followed by 20 years of supervised release, for distributing sexually explicit images of children. Goodlett emailed the materials to an email account in Alaska in January 2012.
According to Assistant U.S. Attorney Audrey J. Renschen, over 3,500 images and 150 videos of children being sexually exploited were involved, including images of children under age 12, and “material that portrays sadistic or masochistic conduct or other depictions of violence.”
At Goodlett’s sentencing, Judge Beistline noted the seriousness of the offenses, the ongoing harm to the victimized children, and the need to deter this kind of conduct. After serving his 10 years and 6 months in prison, Judge Beistline stated Goodlett must serve 20 years of supervised release and be required to comply with special conditions, including participating in sex offender assessment and treatment, and registering as a sex offender.
This case was initiated as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse which was launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood combines federal, state and local resources to better identify, apprehend and prosecute individuals, who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Ms. Loeffler commends Immigration and Customs Enforcement’s Homeland Security Investigations for their investigation of this case.
Story County Man Sentenced to 16 Months in Prison for Alien SmugglingRead the Press Release
DES MOINES, IA - On August 22, 2013, Donald Dean Jensen, age 58, of rural Story County, was sentenced to 16 months imprisonment for alien smuggling. In addition, the Court ordered Jensen to pay a $5,000 fine.
As part of his guilty plea, the Jensen admitted to paying another individual to unlawfully smuggle two Mexican women into the United States on separate occasions in 2010. On both occasions, Jensen was aware the women had not received prior official authorization to enter the United States. At sentencing, the women testified they were expected to cook, clean and have sexual relations with Jensen during their stay in Iowa. Both women also testified about the limited communication and feeling of isolation they encountered during their stay at Jensen’s rural residence.
The investigation was conducted by Homeland Security Investigations, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Stock Broker Sentenced on Wire Fraud Charges for Executing International Investment Fraud SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, New York, Hector Gallardo, a registered representative and a holder of Series 7 and 63 licenses issued by the Financial Industry Regulatory Authority, was sentenced to 60 months in prison in connection with his wire fraud conviction. On December 13, 2012, Gallardo pled guilty to wire fraud for stealing investments induced through false promises of exorbitant monthly investment returns. In addition to the prison term, United States District Judge Sandra L. Townes imposed a term of supervised release of three years and fines and forfeiture awards totaling $876,193.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service.
“Hector Gallardo told international investors a tale of safe and lucrative investing through a professional trading corporation. His story was nothing more than a fairy tale, designed to part the investors from their money and to fund his own lavish lifestyle. Ultimately, the truth caught up with Gallardo, and justice has now been served,” stated United States Attorney Lynch. “Protecting investors, foreign and domestic, from fraudulent schemes is a priority of this Office and the Department of Justice. Those who commit these crimes will be aggressively tracked down and prosecuted.”
Between January and October 2007, the defendant, a registered representative employed at the New York office of Orion Trading, LLC, which did business as “Brokerlatino,” solicited investments from two representatives of an investment firm in Bolivia (“the Bolivian investors”) that had collected and bundled funds from at least 350 Bolivian retail investors, each of whom invested sums ranging from approximately $100 to $32,000. Lured by the defendant’s promises of monthly returns between nine and fifteen percent, the Bolivian investors wired approximately $1.15 million to Ventel Enterprises Corporation (“Ventel”), a sham corporation the defendant had falsely described as comprising “professional traders” who bought and sold a wide variety of securities for investors. In the course of the fraud, the defendant returned approximately $250,000 of the Bolivian investors’ investment to fraudulently demonstrate illusory returns on the investment, and to maintain the ruse that the investment was performing well.
In fact, the defendant did not invest any of the Bolivian investors’ money as promised. At most, he invested approximately $190,000 of their money in stocks and bonds through nominee accounts at three brokerages and lost virtually the entire amount – a fact that he did not disclose to the Bolivian investors. As for the remaining approximately $685,000 of the investment, the defendant stole that money and used it to pay his and his family’s expenses, including airline tickets and multiple trips to Atlantic City. The defendant’s scheme fell apart when the Bolivian investors demanded to see the documentation associated with their purported investments with Ventel. In total, the Bolivian investors’ lost approximately $900,000 of their investments with the defendant and Ventel.
After the defendant’s scheme was brought to the attention of the Securities and Exchange Commission, the defendant fled to Venezuela in September 2009. The defendant later re-entered the United States, where he was tracked by law enforcement to his new home in Long Island City, Queens.
The government’s case is being prosecuted by Assistant United States Attorney James G. McGovern.
This prosecution was the result of efforts by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendants
Name: HECTOR GALLARDO
Age: 40Smithton Man Charged with Production of Child PornographyRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Kyle W. Oberg, 37, of Smithton, Illinois, was charged on a two-count Indictment charging him with Production of Child Pornography and Possession of Child Pornography. The alleged violations took place between on or about November 23, 2012, and June 27, 2013, in St. Clair County. After a detention hearing, the Court ordered that Oberg be held without bond pending trial.
“My office will not cease to protect the most vulnerable individuals in our society.” noted United States Attorney Wigginton. “Crimes against children hurt every member of our society.”
A trial date has been set for October 28, 2013. If convicted, Oberg faces a term of imprisonment of not less than fifteen (15) years but not more than 30 years of imprisonment, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life.
An indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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.”
The case was investigated by the Smithton Police Department and the United States Secret Service Southern Illinois Cyber-Crime Unit. The case is assigned to Assistant United States Attorney Angela Scott.
Salisbury Man Pleads Guilty to Bank RobberyRead the Press Release
Baltimore, Maryland – Gary Allen Mitchell, age 42, of Salisbury, Maryland, pleaded guilty today to bank robbery. Mitchell has two prior federal bank robbery convictions – one each in Maryland and Delaware.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Salisbury Police Chief Barbara Duncan.
According to his plea agreement, on March 21, 2013, Mitchell robbed the PNC bank in the 300 block of Civic Avenue in Salisbury. Mitchell gave the teller a note stating that he was robbing the bank, that he would harm the teller if she did not comply with his demands, and that he had a gun. Mitchell had his hand in his pocket as if he had a gun. Mitchell further advised that the teller should not pull the alarm, nor give him any marked money, dye packs, or tracking devices. The teller gave Mitchell $4,177, including a tracking device within a stack of $50 bills, as per bank policy. Mitchell became angry, threw the stack of money on the counter, and told the teller that he had instructed her not to do that. Police officers arrested Mitchell, who was found smoking crack cocaine shortly after the bank robbery, and recovered the proceeds of the robbery.Mitchell faces a maximum sentence of 20 years in prison. U.S. District Judge J. Frederick Motz scheduled sentencing for November 15, 2013 at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the FBI and Salisbury Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Bonnie S. Greenberg, who is prosecuting the case.Rosebud Woman Charged with Assault by Striking, Beating and Wounding and Simple AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that Myra Ree, a/k/a Myra Iron Shell, age 24, of Rosebud, South Dakota, appeared before U.S. District Judge Roberto A. Lange on August 22, 2013, and pled guilty to Assault by Striking, Beating and Wounding and Simple Assault.
The maximum penalty upon conviction is 6 months in custody, a $5,000 fine, or both; and $10 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on January 28, 2013, when a fight ensued between Ree and the victim. Ree struck the victim and bit him on the arm, wounding him.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Timothy M. Maher.
A sentencing date was set for September 5, 2013. Ree was released on bond pending sentencing.Racketeering Charges Filed Against Alleged Members of Violent Loan Sharking and Illegal Gambling OrganizationRead the Press Release
PHILADELPHIA - An indictment was unsealed today charging nine people in a loan sharking and illegal gambling ring allegedly run out of several Philadelphia businesses. Ylli Gjeli, 48, Fatimir Mustafaraj, 41, George Markakis, 43, Gezim Asllani, 34, Rezart Rahmi Telushi, 40, Eneo Jahaj, 26, Ardit Pone, 35, all of Philadelphia, PA, Erion Murataj, 35, of Huntingdon Valley, and Brian Jackson, 35, of Harleysville, were arrested this morning. They are named in an indictment charging racketeering conspiracy, racketeering collection of unlawful debt, making extortionate extensions of credit, collections of extensions of credit by extortionate means, operating an illegal gambling business, and possession of a firearm in furtherance of a crime of violence.
The charges were announced by United States Attorney Zane David Memeger, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, FBI Special Agent-in-Charge Ed Hanko and Special Agent-in-Charge of IRS Criminal Investigation Akeia Conner.According to the indictment, the defendants and their associates used businesses located in Philadelphia - including the Lion Bar & Grill, Blackbird Café, “Ylli’s 2 Brothers,” First England Pizza, and various coffee shops, among others - to conduct the enterprise’s loan sharking activities and illegal gambling business. The defendants allegedly generated money by making and collecting on loans with usurious rates of interest; using intimidation, threats, and violence to make and collect on loans; and making loans to betting customers whose debts were incurred through the enterprise’s illegal gambling business.
Members and associates of the enterprise allegedly cultivated their reputation for violence by threatening customers with dangerous weapons such as a firearm and hatchet; using implied threats and intimidation; telling customers that if they did not pay their debts someone would kill them, “break your legs,” or physically harm them or their family members in some other way; and physically assaulting subordinate members and associates.
It is further alleged that the defendants attempted to conceal the existence and operations of the enterprise from law enforcement by: limiting their discussions of criminal activities when on the phone, using cryptic and coded language to describe criminal activities, such as “pizza” to describe a loan; conducting pat-downs and body searches of customers to check for weapons and recording devices; and conducting the enterprise’s transactions primarily in cash.
“The indictment charges the defendants with running a violent loan sharking and gambling enterprise, using intimidation, threats, and actual violence as part of their illegal business,” said Memeger. “We will not tolerate this type of criminal activity that preys upon financial weakness and threatens the physical safety of the individuals in debt and their innocent family members.”
“The indictment unsealed today charges nine defendants with operating a criminal enterprise built on illegal gambling and a violent extortion racket,” said Acting Assistant Attorney General Raman. “The Justice Department will not stand by as criminal organizations victimize our communities. Today’s charges demonstrate our ongoing commitment to working alongside our federal, state and local counterparts to root out organized crime.”
“The defendants allegedly victimized people twice over,” said FBI Special Agent in Charge Hanko. “They provided loans at outrageous interest rates to those unable to obtain loans from traditional sources and then used threats and violence to collect on those illegal loans. Today's arrests demonstrate the FBI’s continued commitment to ridding Philadelphia of organized crime, wherever we find it.”
“Individuals who engage in this type of financial fraud should know they will not go undetected and will be held accountable,” said Special Agent-in-Charge of IRS Criminal Investigation Akeia Conner. “IRS Criminal Investigation is committed to ‘following the money trail’ to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
According to the indictment, Gjeli was a leader and “boss” of the organization; Mustafaraj, a/k/a “Tony,” was a leader and “muscle.” Both allegedly directed other members in the loan sharking activities and illegal gambling business, approved loans, used intimidation and threats of violence against customers, collected weekly loan payments, physically assaulted subordinate members and associates, supervised the illegal gambling business, provided cash to pay customer’s gambling wins and otherwise financed the gambling business, collected gambling debts, and made loans to customers whose debts were incurred through the illegal gambling business. Markakis, a/k/a “George the Greek,” a/k/a “Fat George,” was allegedly a leader of the enterprise who directed other members in the illegal gambling business. Defendants Murataj, a/k/a “Ben,” a/k/a “Paul,” and Asllani, a/k/a “Sam,” were allegedly “collectors” who assisted Gjeli and Mustafaraj in making loans and regularly collected weekly loan payments from customers. Defendant Telushi, a/k/a “Luigi,” was allegedly a “collector” who regularly collected weekly loan payments from customers. Defendants Jahaj, a/k/a “Nimo,” Brian Jackson, a/k/a “Mark,” and Ardit Pone were allegedly “bookies” who operated parts of the illegal gambling business and regularly collected gambling debts. Jahaj and Jackson also set up and administered online accounts to facilitate customer betting and used the enterprise’s loan sharking activities to convert the gambling debts to loans.
If convicted of all charges, defendants Gjeli and Mustafaraj face a maximum possible sentence of life in prison. The remaining defendants each face a maximum possible sentence of 20 years imprisonment.
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigations, Immigration and Customs Enforcement Homeland Security Investigations, Pennsylvania State Police, Montgomery County Detectives, and the New Jersey State Police. It is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi and Trial Attorney Jerome Maiatico from the Department of Justice Organized Crime & Gang Section.
Click here to view the indictment
An indictment is an accusation, and defendants are presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Over 12 Pounds of Methamphetamine Seized in Multiple Law Enforcement Agency OperationRead the Press Release
Tampa, Florida - Acting United States Attorney A. Lee Bentley, III announces the charging by Complaint of Jose Duarte, a.k.a "Margarito Garcia-Camacho" (45), a Mexican national residing in Highlands County; Ivan (a.k.a: "Costancio") Cabrerra-Pineda (41), a Mexican national residing in Charlotte County, and Brittnay Farabee (23), of Charlotte County, with conspiracy to possess with intent to distribute and to distribute methamphetamine. If convicted on all counts, each face a maximum penalty of life in federal prison.
According to the Complaint, on August 19, 2013, Duarte was approached by law enforcement at his residence in Lake Placid, Florida and admitted to being illegally in the United States after having been deported. He also admitted that he had been involved in the purchasing and selling of methamphetamine. Later, on that same date, investigators observed the delivery of approximately 5.4 pounds of methamphetamine from Cabrera-Pineda and Farabee to Duarte. The individuals were then taken into custody. A subsequent search was conducted at Farabee's residence, in Punta Gorda, where an additional seven pounds of methamphetamine was seized by law enforcement.
A Complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration, the United States Border Patrol, the Hardee County Sheriff's Office, the Desoto County Sheriff's Office, and the Charlotte County Sheriff's Office. It will be prosecuted by Assistant United States Attorney Kathy J.M. Peluso.
Omaha Man Sentenced for Theft of U.S. Government Money and PropertyRead the Press Release
United States Attorney Deborah R. Gilg announced that on August 21, 2013, Senior United States District Court Judge Lyle E. Strom sentenced Christopher Stevens, age 52, to 6 months imprisonment, following his conviction for Theft of U.S. Government Money and Property. Stevens was also ordered to serve a three year term of supervised release after serving his prison term and ordered to pay a $100 special assessment. He was also ordered to make restitution in the amount of $71,191.49.
During the period of March 18, 2007, through May 16, 2012, Christopher Stevens received approximately $43,722.00 in unentitled Social Security Disability benefits and $27,469.49 in unentitled Nebraska Department of Health and Human Services benefits in a fraudulent manner by failing to advise the Social Security Administration and Nebraska Department of Health and Human Services that, while receiving his benefits, he was employed as a counselor and property manager. On several occasions, Mr. Stevens provided false information and failed to advise the Social Security Administration and Nebraska Department of Health and Human Services regarding his true work status. Had the Social Security Administration and Nebraska Department of Health and Human Services known that he was employed as a counselor and property manager, he would not have been provided the amount of benefits received.
This case was investigated by the Social Security Administration, Office of Inspector General.
Olean Businessman Pleads Guilty to Tax EvasionRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Edmund J. Renaud, 70, of Olean, N.Y., pleaded guilty before U.S. District Judge William M. Skretny, to tax evasion. The charge carries a maximum penalty of five years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Gretchen L. Wylegala, who is handling the case, stated that the defendant failed to pay employment taxes for businesses he ran from 2002 through 2008. Renaud ran Southern Tier Moving and Storage, Inc., in Olean until 2002, when the Internal Revenue Service assessed over $48,000 in unpaid federal payroll taxes. Upon shutting down that entity, Renaud opened Southern Tier Moving and Storage, LLC, where from 2002 until 2006, Renaud similarly failed to pay over $86,000 in federal payroll taxes. When IRS revenue officers tried to collect the money, the defendant provided false information about bank accounts and other assets, including a truck he had gotten as a result of accumulating “comp” credits at the Seneca Allegany Casino.In 2007, Renaud filed an Offer in Compromise, settling about $150,000 in taxes due for payment of only $1500. The information that the defendant provided to the IRS in connection with that Offer in Compromise was false in several respects, including false claims that the defendant was out of business, failure to identify bank accounts, and failure to disclose company assets. In fact, while Renaud was not paying his taxes, his companies were receiving income, and he was gambling heavily. Renaud also was the recipient of a significant Workmen’s Compensation award of approximately $100,000.
Sentencing is scheduled for January 27, 2014, at 9:00 a.m. before Judge Skretny.
Renaud's plea comes on the eve of trial, which was scheduled to begin next week. The trial was to be handled by Assistant U.S. Attorneys Wylegala and Edward White.
The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Toni Weirauch, New York Field Office.Olean Businessman Pleads Guilty to Tax EvasionRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Edmund J. Renaud, 70, of Olean, N.Y., pleaded guilty before U.S. District Judge William M. Skretny, to tax evasion. The charge carries a maximum penalty of five years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Gretchen L. Wylegala, who is handling the case, stated that the defendant failed to pay employment taxes for businesses he ran from 2002 through 2008. Renaud ran Southern Tier Moving and Storage, Inc., in Olean until 2002, when the Internal Revenue Service assessed over $48,000 in unpaid federal payroll taxes. Upon shutting down that entity, Renaud opened Southern Tier Moving and Storage, LLC, where from 2002 until 2006, Renaud similarly failed to pay over $86,000 in federal payroll taxes. When IRS revenue officers tried to collect the money, the defendant provided false information about bank accounts and other assets, including a truck he had gotten as a result of accumulating “comp” credits at the Seneca Allegany Casino.In 2007, Renaud filed an Offer in Compromise, settling about $150,000 in taxes due for payment of only $1500. The information that the defendant provided to the IRS in connection with that Offer in Compromise was false in several respects, including false claims that the defendant was out of business, failure to identify bank accounts, and failure to disclose company assets. In fact, while Renaud was not paying his taxes, his companies were receiving income, and he was gambling heavily. Renaud also was the recipient of a significant Workmen’s Compensation award of approximately $100,000.
Sentencing is scheduled for January 27, 2014, at 9:00 a.m. before Judge Skretny.
Renaud's plea comes on the eve of trial, which was scheduled to begin next week. The trial was to be handled by Assistant U.S. Attorneys Wylegala and Edward White.
The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Toni Weirauch, New York Field Office.Media AdvisoryRead the Press Release
Montgomery, Alabama - George L. Beck, Jr., United States Attorney for the Middle District of Alabama, Stephen Richardson, Special Agent in Charge of Mobile Division of the Federal Bureau of Investigation, and Paul Register, Chief of Police for the Auburn Police Division will hold a press conference to announce the indictment, arrest and dismantlement of a high stakes dog fighting and gambling organization. Press releases and other handouts will be provided at the conference. The press conference will be held on Monday, August 26, 2013, at 10:30 a.m., at the U.S. Attorney’s Office, 131 Clayton Street, Montgomery, Alabama, and the media is invited.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Managing Member of Altamont Global Partners Pleads Guilty to $16 Million Investment FraudRead the Press Release
Orlando, Florida - Acting United States Attorney A. Lee Bentley, III announces that John G. Wilkins (63, Chuluota, Florida) today pleaded guilty to conspiracy to commit mail fraud and wire fraud. Wilkins is facing up to 20 years in federal prison. Wilkins has also agreed to forfeit more than $4 million that is being held in various bank and trading accounts. These monies will be returned to the victims of the fraud, as partial payment towards the expected restitution in the case of over $16 million. Sentencing has been set for November 21, 2013.
According to court documents, Altamont Global Partners, L.L.C. owned or managed a series of investment funds. Altamont Global began operating business in 2009. Wilkins joined the company in 2009 and later became one of its managing members.
The Matterhorn Fund, LLC was the first fund for which investors were solicited by Altamont Global. To induce individuals to invest, Wilkins and others falsely represented that the Matterhorn Fund had a long history of making profits and that the individual who would be handling the trading was a graduate of Stanford University, worked for Salomon Brothers as an institutional investment advisor, and had successfully traded worldwide investment vehicles for more than three decades.
In the first quarter of 2010, the Matterhorn Fund experienced significant trading losses. Rather than accurately reporting those losses on the quarterly statements, Wilkins falsified the quarterly statements to falsely claim that the Matterhorn Fund was earning an above-market rate of return.
The false rates of returns that were claimed for the Matterhorn Fund were then used to induce individuals to invest in the McKinley Fund. The McKinley Fund also lost money and Wilkins, again, falsified the quarterly statements for that fund. Wilkins and others then used their alleged performance with the Matterhorn Fund and the McKinley Fund to solicit investments in two other funds: Midas Management Partners LLC and Binary Strategy One Fund, LLC. In total, more than 200 individuals invested more than $16 million in the four funds owned or managed by Altamont Global.
In June 2012, the National Futures Association (NFA) conducted a surprise examination of Altamont Global. During that examination, the NFA discovered that the quarterly statements were being falsified to hide losses and that the net asset values of the Matterhorn Fund and the McKinley Fund were being inflated to make it appear that trading had been successful.
On July 16, 2012, the U.S. Commodity Futures Trading Commission filed a complaint against Wilkins and others. The District Court entered an emergency order that same day, freezing the assets of the defendants in that civil case.
This case was investigated by the United States Secret Service and the State of Florida, Office of Financial Regulation. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
Lower Brule Man Charged with Assaulting, Resisting and Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury.
Malcolm Andrews, age 19, was indicted on July 17, 2013, for Assaulting, Resisting and Impeding a Federal Officer. Andrews appeared before U.S. Magistrate Judge Mark A. Moreno on August 22, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release and an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Andrews is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Andrews was released on bond pending trial which has been set for October 22, 2013.Local Businessmen Convicted for Hiring and Transporting Undocumented AliensRead the Press Release
HOUSTON – Thomas Gard, of Nederland, has entered a plea of guilty to conspiring to transport undocumented aliens, concealing and harboring undocumented aliens and inducing and encouraging their residence in the U.S. for commercial advantage and financial gain, United States Attorney Kenneth Magidson announced today along with Brian M. Moskowitz, special agent in charge of Homeland Security Investigations (HSI) in Houston. Gard, 50, was charged along with Phillip Taylor Hallmark, 49, of Winnie, in relation to the August 2010 transportation of at least 42 undocumented aliens to cleanup an oil spill in Kalamazoo, Mich.
Hallmark, the owner of Hallmark Industrial Services Inc. (HIS), pleaded guilty to the conspiracy April 11, 2013. Gard was a manager at HIS.
“Jobs are a major reason people come to America - be it in accordance with our laws or by breaking them. Those who facilitate the latter for the sake of profit need to understand that their actions come with a price,” said Moskowitz. “Those involved in the illicit hiring of workers should take note - doing business in this manner could wind up costing them their freedom.”
According to the factual basis in support of Gard’s plea today, HIS was contracted by Garner Environmental to clean up a ruptured Enbridge pipeline that resulted in an oil spill in Kalamazoo. Agents learned HIS knowingly employed undocumented aliens to clean up the oil spill and fraudulently completed work authorization forms on their behalf. It was a part of the conspiracy that the aliens were housed in hotels, provided meals and transportation to and from the worksite while they worked to clean the oil spill.
To further the employment of the undocumented aliens, Hallmark and Gard paid them in cash. HIS would cash the undocumented aliens’ checks en masse at a local bank in Winnie for the work done in Michigan. Once the checks were cashed, Hallmark would pay the undocumented aliens less than what he was paid by the contractor. The aliens claimed they never saw the checks before they were cashed and were paid $800 per week.
The investigation revealed the undocumented aliens received less than what the contractor paid HIS.
Gard admitted he conspired with Hallmark to transport the undocumented aliens back from Michigan after a now former U.S. Congressman accused HIS of hiring undocumented aliens to clean up the Kalamazoo oil spill. Gard assisted in arranging the transportation, travel, food and hotel accommodations for the undocumented aliens.
Both Hallmark and Gard face a maximum of 10 years in federal prison and a possible $250,000 fine at sentencing. Hallmark is set for Oct. 25, 2013, while Gard will be sentenced Nov. 8, 2013, at 10:00 a.m.
HSI investigated. The case is being prosecuted by Assistant United States Attorneys Kebharu Smith and Suzanne Elmilady.
Las Vegas Attorney Paul Wommer Sentenced to over Three Years in Prison for Structuring Bank Deposits and Tax CrimesRead the Press Release
LAS VEGAS, Nev. – Las Vegas attorney Paul Wommer was sentenced this morning by U.S. District Judge Gloria M. Navarro to 41 months in federal prison for making structured bank deposits to hide money from the IRS, evading income taxes, and filing a false tax return, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Wommer, 60, of Las Vegas, was found guilty in April following a bench trial. Wommer was also sentenced to three years of supervised release, and ordered to pay a $7,500 fine and forfeit any proceeds of his crimes. Judge Navarro also found that Wommer’s testimony at trial was not credible and increased his prison sentence for obstruction of justice. Wommer was permitted to self-report to federal prison by Nov. 20, 2013.
“Mr. Wommer is the second attorney in the last three months in Nevada to be convicted and sentenced to prison for trying to hide money from the IRS,” said U.S. Attorney Bogden. “If you do not pay taxes on your income and conceal the income from the IRS, the penalties are severe when you are caught.”
According to the court records and evidence introduced at trial, between June 30 and July 15, 2010, Wommer made or assisted in 15 structured deposits totaling $138,700 for the purpose of evading bank reporting requirements. These deposits were made as part of a pattern of illegal activity involving more than $100,000 during a 12-month time period. During that same time period, Wommer willfully attempted to evade federal income taxes in the amount of $13,020 by concealing and attempting to conceal his assets, by making false statements to the IRS, and by placing funds and property in the names of nominees.
The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Andrew W. Duncan.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Hogansburg, New York - Woman pled guilty to participating in a conspiracy in 2009 and 2010 to smuggle over 18,000 endangered and threatened reptiles from the United States into Canada.Read the Press Release
Richard S. Hartunian, United States Attorney for the Northern District of New York, announced today that Olivia Terrance, 28, of Hogansburg, New York, pled guilty to participating in a conspiracy in 2009 and 2010 to smuggle over 18,000 endangered and threatened reptiles from the United States into Canada, in violation of Title 18 United States Code section 371. The Honorable Judge Norman A. Mordue sentenced Terrance to 18 months in jail to be followed by 3 years of supervised release.
Terrance smuggled turtles and reptiles worth hundreds of thousands of dollars into Canada where they were sold to retailers and collectors. She was caught when law enforcement followed her by car and helicopter after she received a shipment of wildlife and transported it by boat into Canada.
This case was investigated by Special Agents of the United States Fish & Wildlife Service, with assistance from the Department of Homeland Security, the Canadian Wildlife Service, the Royal Canadian Mounted Police, the Canada Border Services Agency, and the Mohawk Nation Tribal Police. The case was prosecuted by Assistant United States Attorney Craig A. Benedict. Questions may be directed to AUSA Benedict at 315-448-0726 or cell phone at 315-391-1110.Health Care Nurse SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Melody Milton, 38, of Albany, Georgia, was sentenced on August 22, 2013, following her guilty pleas on August 23, 2012 , to embezzlement of government property and aggravated identity theft. She received a sentence of seventy (70) months imprisonment and was ordered to pay $110,431 in restitution to the Internal Revenue Service.
Ms. Milton, formerly a home health care nurse employed by Phoebe Putney Home Health Care, admitted that she opened bank accounts in the name of “Quick Cash Check Cashing” at two Albany area banks for the purpose of facilitating the illegal scheme. Ms. Milton would fraudulently obtain Internal Revenue Service refund checks at a post office box she opened in order to receive these checks directly. The checks were in the names of other persons without their knowledge or consent, many of whom were her own patients, while she was employed at Phoebe Home Health Care. She would then negotiate the checks for her own use by depositing the third party checks into these bank accounts which were controlled by her. The total value of all the Treasury checks is $282,428.00.
“While she should have been caring for her patients, Ms. Milton was stealing their identities and using them to steal from the U.S. Treasury. Identity theft is not a ‘victimless’ crime, and my office will continue to make the prosecution of these cases a priority. Ms. Milton will now have a new identity – she will be known as a federal inmate,” said United States Attorney Michael Moore.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Jim Crane.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Grand Jury Indicts Former CEO/Owner of Valley Dairy for fraud related to State of Alaska Loans and USDA Grant FundsRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Wasilla woman has been indicted by a federal grand jury in Anchorage for defrauding the State of Alaska and for making false statements to the U.S. Department of Agriculture.
The six-count indictment named Karen B. Olson, 57, of Wasilla, Alaska, as the sole defendant.
The indictment alleges this offense occurred in connection with the construction and management of Valley Dairy, Inc., doing business as Matanuska Creamery, in Palmer, Alaska. Olson is also charged with concealing the criminal conduct of Kyle E. Beus, the former President and co-owner of the Dairy, who was indicted in December 2012, and is currently awaiting trial.
According to the indictment presented to the grand jury, Olson, in September 2008, as an investor and the CEO of Valley Dairy, executed a scheme beginning in September 2008 and continuing through December 2008, to illegally obtain a $430,000 loan from the State of Alaska, Division of Agriculture, in order to conceal the true nature of Valley Dairy finances and the losses to the Dairy caused by the alleged illegal activity of Beus, the former co-owner and President of Valley Dairy.
Beus is alleged to have executed a scheme beginning in December 2007, and continuing through March 2008, to obtain money from the U.S. Department of Agriculture by submitting false documents in order to draw down the proceeds of two federal grants totaling $643,000 awarded by the USDA to support a milk, ice cream and cheese manufacturing facility in Alaska; Beus then allegedly converted part of the funds to his personal use.
Olson is also charged with submitting false statements to the USDA Rural Development to convince it to allow the State of Alaska to take a first lien position on equipment purchased with the proceeds of the USDA Valley Dairy grants.
Assistant U.S. Attorney Retta Randall, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of 30 years in prison, a fine of $1 million dollars, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.The U.S. Department of Agriculture, Office of Inspector General- Investigations and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.Former UTSA Projects Manager Indicted by Federal Grand Jury in Connection with A Bribery SchemeRead the Press Release
A federal grand jury in San Antonio this week returned a bribery indictment against 41–year-old James Paul Council, a former project manager in the Facilities Department at the University of Texas at San Antonio, and three other San Antonio area residents in connection with a bribery scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez. As of today, all four defendants have surrendered to federal authorities.
The 17-count indictment charges Council; 47-year-old Alfredo Romero Gonzalez, owner of Power Source Electric, an electrical construction and repair business in San Antonio; 60-year-old Power Source Electric chief estimator and project manager Magin Villalon (a.k.a. “Buddy”); and, Villalon’s wife, 56-year-old Sarah Anne Luna with one count of conspiracy to commit bribery concerning programs receiving Federal funds and four counts of mail fraud. Council is also charged with six counts of receiving a bribe; the other defendants, six counts of paying a bribe.
According to the indictment, from approximately August 2011 through September 2012, the defendants allegedly conducted a scheme to bribe a purchasing officer in order to secure UTSA construction contracts. The indictment further alleges that the defendants colluded in the submission of fraudulent, inflated bids to UTSA under the names of sham companies, GNZ Enterprise, LLC and Vista Contracting, and fixed at least 40 UTSA contracts. Authorities estimate the submitted bids totaled more than $200,000. Furthermore, the indictment alleges that Council received cash as well as improvements to his residence for his role in the scheme.
Upon conviction, the defendants face up to five years imprisonment on the conspiracy count, up to ten years imprisonment for each bribery related count and up to 20 years in federal prison for each mail fraud count. All four defendants are on bond pending further court proceedings.
This indictment resulted from an investigation conducted by the agents with the Federal Bureau of Investigation together with the San Antonio Police Department and the University of Texas at San Antonio Police Department. Assistant United States Attorney James Blankinship is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Former Los Gatos Convent Employee Sentenced to 14 Months Imprisonment for EmbezzlementRead the Press Release
SAN JOSE, Calif. – A former employee for the Sisters of the Holy Names of Jesus and Mary Catholic Convent in Los Gatos, Calif., was sentenced yesterday to 14 months in prison and ordered to pay $110,000 in restitution for embezzling from the Convent, United States Attorney Melinda Haag announced.
Linda Gomez (a/k/a Linda Surrett), 67, formerly of Sunnyvale, Calif. and currently of Chandler, Ariz., pleaded guilty on October 25, 2012. In pleading guilty, Gomez admitted that she used her administrative positions to embezzle cash and to charge personal expenses to a Convent charge card. According to the indictment and evidence presented at sentencing, between 1987 and 2010, Gomez worked for the Convent in various administrative capacities, including as the director of food services and the manager of an on-site convenience store. As part of her professional responsibilities, Gomez made purchases for the 75 Catholic nuns and 60 lay employees at the Convent.
Between March 2008 and her resignation in May 2010, Gomez used various methods to embezzle from the Convent, including obtaining fraudulent reimbursements or credits for products she falsely claimed she had purchased for the Convent and its nuns. In addition to embezzling more than $47,000 in cash, Gomez also diverted more than $53,000 of Convent funds for personal expenses such as jewelry, high-end cutlery, purses, shoes, kitchen appliances and numerous purchases on the QVC and Home Shopping Networks.
Gomez was charged by Indictment filed on Dec. 22, 2011. The Indictment, alleged 14 counts of wire fraud, in violation of 18 U.S.C. Section 1343, and 3 counts of mail fraud, in violation of 18 U.S.C. Section 1341. Gomez pleaded guilty, with no plea agreement, to all 17 counts in the indictment.
The sentence was handed down by U.S. District Court Judge D. Lowell Jensen. In imposing sentence, Judge Jensen found that the defendant had abused a private position of trust to facilitate her offense and had also made misrepresentations regarding acting on behalf of a religious organization. The defendant was also sentenced to a 3-year period of supervised release with conditions that limit her ability to hold fiduciary roles, and also ordered to pay over $110,000 in restitution. At the sentencing hearing, Judge Jensen ordered Gomez to self-surrender by December 4, 2013, to begin serving her prison sentence.
Assistant U.S. Attorney Joseph Fazioli is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Former CEO of PA Cyber Nick Trombetta and CPA Neal Prence Charged in Elaborate Fraud SchemeRead the Press Release
PITTSBURGH, Pa. - The former CEO of the Pennsylvania Cyber Charter School and his accountant have been indicted by a federal grand jury in Pittsburgh on charges of mail fraud, theft or bribery concerning a program receiving federal funds, tax conspiracy and filing a false tax return. The announcement was made today at a news conference by United States Attorney David J. Hickton; FBI Special Agent in Charge Gary Douglas Perdue; Akeia Conner, Special Agent in Charge of the IRS-Criminal Investigation - Philadelphia Field Office; and Steven Anderson, Special Agent in Charge, Department of Education Office of Inspector General - Mid Atlantic Region.
The 11-count indictment, returned on Aug. 21, and unsealed today, named Nicholas Trombetta, 58, of East Liverpool, Ohio, and Neal Prence, 58, of Koppel, Pa.
According to the indictment, Trombetta was the founder and Superintendent of the PA Cyber Charter School. Trombetta created a series of connected for-profit and not-for-profit entities to siphon taxpayer funds out of PA Cyber and to avoid federal income tax liabilities. The indictment alleges that Prence, an accountant, assisted Trombetta in the tax fraud scheme.
“As the founder and CEO of PA Cyber, Trombetta was a custodian of the public trust, receiving public funds,” said U.S. Attorney Hickton. “These charges reflect our obligation to protect the education of children, who are our future, and to protect the compact with hardworking taxpayers.”
“Charter schools are funded with public money that is intended to help educate children in our communities,” stated FBI SAC Perdue. “When individuals enrich themselves with this money rather than act as stewards of the education funds entrusted to them, our communities and the children we are obligated to educate are the true victims.”
“During a six-year period that began in 2006, Mr. Trombetta with the assistance of CPA Prence, concealed his position as the direct beneficiary and recipient of funds generated by PA Cyber,” said IRS-CI SAC Conner. “Mr. Trombetta exerted his influence to control the flow of funds and falsify corporate books and records, ultimately shifting more than $8 million in income attributable to him, to the federal income tax returns of other persons so as to conceal his true income from the IRS. The government must hold corporations and their executives accountable for their actions. It is for this reason that IRS Criminal Investigation continues to vigorously pursue corporate fraud and those individuals who employ illegal accounting practices for personal financial gain.”
"Mr. Trombetta and Mr Prence knowingly and willfully abused their positions of trust for personal gain and did so at the expense of the educational development of children. That is unacceptable," said Steven Anderson, Special Agent in Charge of the U.S. Department of Education Office of Inspector General's Mid-Atlantic Regional Office. "Deservedly, Mr. Trombetta and Mr. Prence will now be held accountable for cheating Pennsylvania’s students."
The law provides for a maximum total sentence of 100 years in prison, a fine of $3,250,000, or both for Trombetta and five years imprisonment, $250,000, or both for Prence. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys James R. Wilson, Robert S. Cessar and Stephen R. Kaufman are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Internal Revenue Service - Criminal Investigations and the U.S. Department of Education Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Florida Man Sentenced to 27 Months in Federal Prison for Participating in Oxycodone Trafficking RingRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that WILNER CASTELIN, also known as “Castro,” 44, of Fort Lauderdale, Fla., was sentenced today by United States District Judge Janet C. Hall in New Haven to 27 months of imprisonment, followed by three years of supervised release, for participating in an oxycodone trafficking ring. On May 13, 2013, a jury found CASTELIN guilty of one count of conspiracy to distribute and to possess with intent to distribute oxycodone, and one count of conspiracy to commit money laundering.
This matter stems from “Operation Blue Coast,” an investigation headed by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force into the large-scale trafficking of oxycodone pills from Florida to Connecticut. The investigation revealed that an individual regularly purchased oxycodone from suppliers in Florida, transported the oxycodone to Connecticut by commercial airline or automobile, and sold the pills for profit to various Connecticut-based narcotics dealers. He then transported the proceeds of his oxycodone sales from Connecticut to Florida, either by having a courier drive the money or by using commercial airline flights.
The evidence at trial revealed that the narcotics trafficker met David Gaudiosi and Bruce Yazdzik, two large-scale oxycodone distributors in Connecticut, in early 2010. After the meeting, Gaudiosi and Yazdzik visited the narcotics trafficker in Florida on multiple occasions to obtain prescriptions for oxycodone from unscrupulous pain clinics, commonly referred to as “pill mills.” The trafficker paid CASTELIN to chauffeur Gaudiosi and Yazdzik during their Florida visits. CASTELIN subsequently agreed to travel to the northeastern U.S. to drive large amounts of U.S. currency, which were proceeds of the narcotics trafficker’s oxycodone sales in Connecticut, to Florida. CASTELIN was paid approximately $1,000 to $1,250 for each trip.
CASTELIN was arrested on September 13, 2011.
Twenty individuals, including two law enforcement officers and three Transportation Security Agency officers, have been charged as a result of this investigation.
Gaudiosi and Yazdzik each pleaded guilty to oxycodone trafficking charges. On November 14, 2012, Yazdzik was sentenced to 120 months of imprisonment. Gaudiosi awaits sentencing.
This matter has been investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force, which includes personnel from the Connecticut State Police and the Bridgeport, Milford, Norwalk, Stamford and Westport Police Departments; the Drug Enforcement Administration in Florida and the U.S. Department of Homeland Security Office of Inspector General. In addition, the U.S. Marshals Service and the Greenwich, Monroe, Danbury and Waterbury Police Departments have assisted the investigation.
This case is being prosecuted by Assistant United States Attorneys Rahul Kale and Brian Leaming.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Florence Man Sentenced to 18 Months for Illegally Copying Xbox 360 Video GameRead the Press Release
COVINGTON, KY -
A Florence, KY., man, previously convicted of copyright infringement, was sentenced today to 18 months in federal prison.
U.S. District Judge David L. Bunning sentenced 32 year-old Anthony Cappadona for willfully infringing a copyright, by distributing a copyrighted work being prepared for commercial distribution.
Cappandona previously admitted that, in May 2010, he made an Xbox 360 video game entitled “Red Dead Redemption,” available for download on a website, prior to the game’s official release date. Court records state that Cappadona illegally downloaded a copy of the game, then uploaded it to a website, and created links for others to download the game for free.
“Red Dead Redemption” is a copyrighted Xbox video game developed and manufactured by the company Take-Two Interactive; therefore, Cappadona violated copyright laws by improperly distributing the game.
According to court documents, Cappadona also advertised on the website that he modified Xbox consoles, so that they could play illegally copied games.
Under federal law, Cappadona must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for three years following his prison term.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Perrye Turner, Special Agent in Charge, FBI, and (Louisville Field Division) jointly announced the sentence.
The investigation was conducted by FBI. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Laura Voorhees.
Federal Jury Convicts Three Clarksville Men of Drug and Gun Charges After Three Week TrialRead the Press Release
Each Faces Mandatory Life in Prison
Demetrius Duncan a/k/a Whirley, 32, Alto Parnell a/k/a Al-Pistol, 31, and Chris Young a/k/a Soldier C, 25, all of Clarksville, Tennessee, were convicted Friday in U.S. District Court, of operating a drug conspiracy and related firearms charges, after a three week jury trial, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
The investigation targeted a drug distribution network which operated in and around the Clarksville, Tennessee area and included two murders and numerous armed robberies. To date, the investigation has resulted in charges against 33 individuals, 28 of whom have been convicted. Thirteen defendants have already received lengthy prison sentences and the remaining defendants are awaiting trial or sentencing.
“This was a large scale drug conspiracy which required substantial resources and court-authorized wiretaps to dismantle,” said Acting U.S. Attorney David Rivera. “Each of these convicted defendants has multiple prior, felony drug convictions and previous prosecutions and sentences obviously did not deter them from continuing to harm the community. The jury’s verdict should now insure that they will never have another opportunity to return to the community to engage in their usual criminal enterprise.”
During the trial, the government introduced evidence, including wiretapped telephone conversations, which showed that Duncan, Parnell and Young were part of a larger drug distribution conspiracy and had distributed substantial amounts of cocaine and crack cocaine in the Clarksville area, including near public housing developments.
Other evidence introduced at trial, showed that during one drug deal, Chris Young had a loaded firearm in his possession and also had $10,000 cash as he attempted to take delivery of cocaine near a school in Clarksville, Tenn. When agents later executed a search warrant at the home of Demetrius Duncan, they found him attempting to flush cocaine and marijuana down the toilet. Firearms were also found in the home. Young and Duncan both have multiple prior felony convictions and were also convicted of being convicted felons in possession of firearms.
Proof introduced against Alto Parnell included recorded conversations between him and Brian Vance, a Clarksville Vice Lord gang leader, discussing the fact that they were going to provide drugs to younger gang members to sell, and discussing how poorly the gang members would fare if Parnell and Vance were to be arrested. Vance previously pleaded guilty to drug conspiracy and conspiracy to commit armed robbery and is pending sentencing.
The investigation was conducted by the Drug Enforcement Administration, the Tennessee Bureau of Investigation, and the Clarksville Police Department, with assistance from other local and federal agencies. Assistant U.S. Attorneys Sunny A.M. Koshy and Lynne Ingram represented the United States.
All defendants currently awaiting trial are presumed innocent unless and until proven guilty in court.
District Man Sentenced to 6 ½-Year Prison TermRead the Press Release
For Robbing and Beating a Man in Northwest Washington
-Victim Continues to Suffer After-Effects from the Crime-WASHINGTON – Arnold Moody, 45, of Washington, D.C., was sentenced today to a prison term of 6 ½ years for robbing and beating a man earlier this year in front of an apartment complex in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Moody pled guilty in June 2013, in the Superior Court of the District of Columbia, to one count of robbery. He was sentenced by the Honorable Michael Ryan. Upon completion of his prison term, Moody will be placed on three years of supervised release.
According to the government’s evidence, on May 3, 2013, at about 3 a.m., Moody stood by the entrance of an apartment complex in the 3400 block of Holmead Place NW, pretending that he either lived there or was there to visit someone. When he noticed the victim approach the complex and sit down, Moody looked around to see if anyone else was around. Then, without warning, he walked over to the victim and punched him in the face multiple times, causing a broken nose.
When the victim got up to defend himself, Moody slammed him to the ground. Then he went through the victim’s pockets and stole his wallet, which contained $40 and an identification card, and an iPhone. In addition to the broken nose, the victim suffered a dislocated shoulder in the attack. He continues to have pain, difficulty seeing, frequent headaches and nosebleeds.
Thanks to the work of detectives from the Metropolitan Police Department’s Fourth District, Moody was apprehended. This was not the first time he attacked someone while stealing property. In 2008, Moody was sentenced to about 2 ½ years of incarceration for nearly the same conduct that he demonstrated in this case – striking a man in the head and taking his property.
In announcing the sentence, U.S. Attorney Machen commended those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Debra McPherson and Victim/Witness Advocate Elsa Resendiz. Finally, he praised the work of Assistant U.S. Attorney Natalia Medina, who prosecuted the case.
13-292Defendant Sentenced on Possession of FirearmRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces today that Nathan Curtis of Choctaw County, Alabama, was sentenced to a term of imprisonment of 87 months following his guilty plea to a charge of being a felon in possession of a firearm. Curtis was previously convicted of felony offenses, including Possession of Cocaine in Choctaw County Circuit Court in 2009.
United States District Court Judge Callie V.S. Granade imposed the sentence which was at the high end of the applicable advisory sentencing guideline range. In deciding on the high end sentence, Judge Granade cited the Defendant’s criminal history and the circumstances of this offense. This case was investigated by the Choctaw County Sheriff’s Office and prosecuted by the United States Attorney’s Office for the Southern District of Alabama.
Defendant Sentenced in Identity Theft Tax Refund Fraud SchemeRead the Press Release
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), and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that defendant Nael Dawud Sammour, 52, of Pompano Beach, was sentenced yesterday before U.S. District Judge William P. Dimitrouleas in connection with his previous conviction on two counts of aggravated identity theft in violation of 18 U.S.C. § 1028A and eight counts of theft of public money in violation of 18 U.S.C. § 641.
At yesterday’s hearing, U.S. District Judge William P. Dimitrouleas sentenced defendant Nael Sammour to 139 months in prison to be followed by four years of supervised release.
According to testimony and evidence presented at trial, as well as from court documents, unknown individuals used stolen identification information, including the names, dates of birth, and social security numbers of unsuspecting taxpayers to fraudulently apply for and receive U.S. tax refunds to which they were not entitled. Thereafter, Sammour obtained many of these fraudulently obtained U.S. Treasury tax refund checks and later transferred these checks, along with counterfeit driver’s licenses and Social Security cards, to undercover IRS agents posing as check cashers. In total, agents seized 75 fraudulently obtained U.S. Treasury tax refund checks totaling $750,369.45 from Defendant Sammour. Moreover, when Sammour was arrested, law enforcement located and seized $30,128.24 in U.S. currency.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the FBI for their work on the case. This case is being prosecuted by Assistant U.S. Attorney Marc Anton.
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.
Defendant Sentenced for Providing Material Support to TerroristsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and the members of the South Florida Joint Terrorism Task Force (“JTTF”), announce today that Hafiz Muhammed Sher Ali Khan, 77, was sentenced to 25 years in prison by U.S. District Judge Robert N. Scola, Jr., for providing material support to terrorists, including the Pakistani Taliban. According to public records, defendant Hafiz Khan was the Imam at the Miami Masjid in Miami, Florida. The indictment did not allege that the masjid participated in the defendant’s scheme.
Khan was convicted by a jury on March 4, 2013, after two months of trial, on charges of conspiring to provide, and providing, material support to a conspiracy to murder, maim and kidnap persons overseas, 18 U.S.C. ? 2339A, and conspiring to provide material support to a foreign terrorist organization, specifically, the Pakistani Taliban, 18 U.S.C. ? 2339B.
U.S. Attorney Wifredo A. Ferrer stated, “The sentence today demonstrates that no matter who you are or what your motive may be, financing terrorism will not be tolerated by our criminal justice system, and will be punished severely. Today’s sentence sends a powerful message to anyone who thinks they have a reason to support terrorism: you cannot use the freedoms of this country to support terrorism. It will not be tolerated. You will be brought to justice.”
"Terrorists in Pakistan have lost a reliable source of funding and the man responsible for that funding, Hafiz Muhammed Sher Ali Khan, is now paying the price for his actions," said Xanthie Mangum, Assistant Special Agent in Charge of the FBI in Miami. "Terrorism remains the FBI's top priority."
The Pakistani Taliban, also known as Tehrik¬e Taliban Pakistan, Tehrik¬I¬Taliban, Tehrik-e-Taliban, and Tehreek¬e¬Taliban, is a Pakistan-based terrorist organization formed in or around December 2007 by an alliance of radical Islamist militants. On September 1, 2010, the United States Department of State formally designated the Pakistani Taliban as a Foreign Terrorist Organization, under Section 219 of the Immigration and Nationality Act.
According to the evidence at trial, Khan, with the help of persons in South Florida and Pakistan, sent money and other material support to Pakistani Taliban contacts and sympathizers overseas. The Pakistani Taliban?s objectives include resistance against the lawful Pakistani government, enforcement of strict Islamic law known as Sharia, and opposition to the United States and coalition armed forces fighting in neighboring Afghanistan. The Pakistani Taliban has committed numerous acts of violence in Pakistan and elsewhere, including suicide bombings which resulted in the death of civilians as well as Pakistani police, army, and government personnel, and also provided financing and training for the attempted bombing of New York City’s Times Square in May 2010.
According to the evidence at trial, Khan sought to aid the Pakistani Taliban?s fight against the Pakistani government and its perceived allies, including the United States, by supporting acts of murder, kidnapping, and maiming in Pakistan and elsewhere, in order to displace the lawful government of Pakistan and to establish Sharia. Khan transferred money from the United States to Pakistani Taliban supporters in Pakistan, primarily using bank accounts and wire transfer services in the United States and Pakistan. These funds were intended to purchase guns for the Pakistani Taliban, to sustain militants and their families, and generally to promote the Pakistani Taliban?s cause. Khan also solicited and collected money in the United States for that purpose, taking great care to conceal his activities. In one recorded conversation introduced as evidence at trial, Khan stated that money cannot be sent openly to the Pakistani Taliban, but must instead be sent covertly through its supporters. Khan also used a madrassa he founded in Pakistan (where he was born) to provide shelter and other support to Pakistani Taliban militants. In another recorded conversation introduced as evidence at trial, Khan claimed that children from his madrassa have gone to train to kill Americans in neighboring Afghanistan.
Mr. Ferrer commended the investigative efforts of the FBI, U.S. Customs and Border Protection, U.S. Department of State, Broward Sheriff’s Office, Miami-Dade Police, City of Miami Police, City of Miramar Police, City of Margate Police, and the Florida Department of Environmental Protection, and the members of the South Florida Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys John Shipley, Sivashree Sundaram, and Michael Patrick Sullivan, from the U.S. Attorney’s Office for the Southern District of Florida, and Trial Attorney Bridget Behling from the Counterterrorism Section of the Justice Department’s National Security Division.
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.
Danville Man Sentenced on Gun ChargeRead the Press Release
DANVILLE, VIRGINIA – A Danville man who previously pled guilty to the illegal sale of a firearm to a convicted felon at a local flea market, was sentenced this afternoon in the United States District Court for the Western District of Virginia in Danville.
James Calvin Wilson, 67, of Danville, Va., previously pled guilty to one count of selling a firearm to a person who had previously been convicted of a felony. This afternoon in District Court, Wilson was sentenced to 18 months in federal prison.
“Keeping guns out of the hands of convicted felons is a crucial part of protecting our communities,” United States Attorney Timothy J. Heaphy said today. “This defendant endangered public safety by making a gun available to an individual prohibited by law from owning a firearm. We will continue to do all we can to keep guns out of the hands of convicted felons while also protecting the second amendment rights of law-abiding gun owners.”
Previously, Wilson admitted that in August 2012 he first approached undercover officers with the Pittsylvania County Sheriff’s Office and attempted to sell handguns and a shotgun out of the trunk of his car. Over the course of several weeks, undercover officers purchased 12 guns from Wilson at his home in Danville.
In October 2012, a confidential informant, who is a convicted felon and working with law enforcement, approached Wilson at a flea market regarding the purchase of a 9mm semi-automatic pistol. The confidential informant told Wilson he could not purchase a gun from a gun store because he was a convicted felon. Upon hearing this, Wilson raised his hand to the informant and told him “don’t tell me that.” Wilson proceeded to sell the firearm to the informant for $500.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pittsylvania County Sheriff’s Office and the Campbell County Sheriff’s Office. Assistant United States Attorney Daniel Bubar is prosecuting the case for the United States.
Dallas Man Sentenced to 10 Years for Distribution of MethamphetamineRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced thatVincent Carter, 36, of Dallas, Texas, was sentenced Thursday by U.S. District Judge S. Maurice Hicks Jr. to 10 years in prison and eight years of supervised release for distribution of methamphetamine.
According to evidence presented at the guilty plea, on October 4, 2012, Carter made a deal to buy methamphetamine. The meeting place was set in Natchitoches, La. Carter sold the drugs while authorities were monitoring the transaction. On October 10, 2012, Carter’s home was raided, and a .40 caliber semi-automatic pistol and a .380 semi-automatic pistol were found. He pleaded guilty on March 19, 2013, to one count of distribution of methamphetamine.
“This case is the result of a joint effort by our office and our federal, state, and local law enforcement partners. Operations like this make a difference in the community and disrupt the sale of illegal narcotics, Finley stated.”
Carter was arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation code named “Crystal Bend.” The DEA, ATF and the Louisiana State Police participated in this OCDETF operation.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Assistant U.S. Attorney James G. Cowles prosecuted the case.
Customs Broker, Data Freight Corporation Pleads Guilty to Illegal Importing of Endangered WildlifeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Dave Pharo, Resident Agent in Charge, U.S. Fish and Wildlife Service, Office of Law Enforcement (OLE), announced today that Miami, Florida corporation Data Freight Corporation pled guilty today, pursuant to a plea agreement, to a single count Information, charging it with the illegal importation and possession of wildlife, in violation of the Lacey Act.
Sentencing for Data Freight Corporation (DATA) is scheduled for October 29, 2013, before United States District Judge K. Michael Moore.
According to Court documents and statements at the hearing, DATA permitted the importation and transportation into the United States of Siberian sturgeon (Acipenser baerii) without completing Declaration Form 3-177, declaring the importation of fish or wildlife, and obtaining a permit for the importation of the same pursuant to the Convention on International Trade in Endangered Species (“CITES”).
Information developed by U.S. Fish and Wildlife Service – OLE resulted in the charge against DATA in the Information. According to documents in the Court file, this case involved over four hundred and sixty-eight grams of caviar product.
The importation of said wildlife, such as caviar, is prohibited by the federal Lacey Act, 16 U.S.C. §§ 3372(a)(1), (a)(4), and 3373(d)(2). The Lacey Act, in pertinent part, makes it unlawful for a person to import and possess endangered species of wildlife which has been, or is intended to be, imported, sold, purchased, or received from any foreign country or transported in interstate or foreign commerce.
Mr. Ferrer commended the investigative efforts of U.S. Fish and Wildlife – OLE. This case is being prosecuted by Assistant U.S. Attorney Norman O. Hemming, III.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Concho County Resident Faces up to 10 Years in Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
LUBBOCK, Texas — Gary Edward Larock, Jr., 35, most recently a resident of Eden, Texas, pleaded guilty today, before U.S. District Judge Sam R. Cummings, to an indictment charging one count of failure to register as a sex offender. Larock, who has been in custody since his arrest in June 2013 on a related criminal complaint, faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In August 2005, Larock was convicted in New York of third-degree rape, a felony. He was notified that based on that conviction, he was required to register as a sex offender under the Sex Offender Registration and Notification Act. Larock left New York and traveled to California, where, in December 2012, he was arrested by the San Joaquin County Sheriff’s Office on an outstanding warrant from New York for failing to comply with sex offender registration requirements in that state. He was released from jail in California in early February 2013 and traveled to Eden, Texas, where he gained employment. Larock failed to register as a sex offender while living and working in Eden, Texas.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the U.S. Marshals Service, the Concho County Sheriff’s Office and the Texas Department of Public Safety. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.