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22 August 2013
Murray, West Jordan Get Department of Justice Grants to Support Law Enforcement, CommunitiesRead the Press Release
Utah Department of Public Safety Also Gets Forensic Science GrantSALT LAKE CITY – The U.S. Department of Justice has awarded Edward Bryne Memorial Justice Assistance Grants (JAG) to Murray and West Jordan to support law enforcement efforts in the two cities.
JAG funding allows states and local governments to support a broad range of activities to prevent crime based on their own state and local needs. Grant funds can be used for state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support and information systems for criminal justice programs. The funds can be used in a variety of program areas, including law enforcement; prosecution and court programs; prevention and education; corrections; drug treatment and enforcement programs; planning, evaluation, and technology improvement programs; and crime victim and witness programs (other than compensation).
Murray received a $32,595 grant from DOJ’s Bureau of Justice Assistance. Murray will use the funds to purchase law enforcement equipment for police vehicles.
West Jordan received a $34,538 grant. West Jordan will use the funds for training and law enforcement equipment.
DOJ’s National Institute of Justice has awarded a $59,427 grant to the Utah Department of Public Safety as a part of this year’s Paul Coverdell Forensic Science Improvement Grants Program. Coverdell funds are to be used to improve the quality and timeliness of forensic science and medical examiner services and to eliminate backlogs in the analysis of forensic evidence, including controlled substances, firearms examinations, forensic pathology, latent prints, questioned documents, toxicology and trace evidence.
Minneapolis Felon Pleads Guilty to Possessing Four FirearmsRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 47-year-old Minneapolis felon pleaded guilty to one count of being a felon in possession of a firearm for possessing a .357-caliber revolver, a rifle and two shotguns. Carl Craig Larson, who was indicted on June 18, 2013, entered his plea before United States District Judge Susan Richard Nelson.
In his plea agreement, Larson admitted that on April 21, 2013, law enforcement officers responded to a burglary call at a home in Waseca County, where they found Larson inside the residence. Police went on to discover several pieces of jewelry in Larson’s pockets. They also found a loaded .357 revolver in the house, which Larson had admittedly possessed and had used to shoot at doors in attempting to enter the house.
During the execution of a search warrant on the car Larson drove to the burglary, officers uncovered three other guns. The guns matched the description of firearms that had been reported stolen during a burglary in LeSueur County on April 20, 2013. The guns included a seven-millimeter caliber rifle and two 12-gauge shotguns.
Because he is a felon, Larson is prohibited under federal law from possessing a firearm at any time. Larson was previously convicted in Hennepin County for second-degree murder (1986), financial transaction card fraud (1997), and burglary (1999 and 2010). Because at least three of those convictions constituted crimes of violence, Larson will now be subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison for anyone with such a record who is subsequently convicted in federal court for being a felon in possession of a firearm or ammunition. Judge Nelson will determine Larson’s sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the LeSueur and Waseca county sheriff’s offices, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorneys Julie E. Allyn and Sarah E. Hudleston.Milford Realtor Charged with Running $15 Million Investment Fraud SchemeRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
A federal grand jury has charged Brenda Ashcraft, 43, of Milford, Ohio, with defrauding investors of at least $15 million between 2009 and 2013 in a scheme to purchase and sell real estate through real estate investment trusts known as REITs.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI); Mark Porter, Special Agent in Charge, U.S. Secret Service; and Andre T. Porter, Director of Ohio Department of Commerce, announced the indictment that was returned on August 21, 2013.
The indictment alleges that Aschraft owned and operated French Manor Properties, which she told investors was acting as the REIT Trustee that would “secure residential and commercial real estate at wholesale pricing.” Investors believed that their investments were secured by real estate and Ashcraft promised them 40% annual returns on their investments.
Instead, the indictment alleges, Ashcraft diverted investor funds to her own personal use and benefit, including a $50,000 investor payment that she used to pay for Cincinnati Reds season tickets. Ashcraft would at times send investors checks for returns on their investments but the checks often bounced.
The indictment charges Ashcraft with one count of wire fraud and one count of securities fraud, each punishable by up to 20 years in prison. She is also charged with one count of engaging in a monetary transaction in criminally derived property and aiding and abetting, punishable by up to 10 years in prison. She faces a maximum fine of $5 million on the securities fraud charge. The wire fraud and monetary transaction charges each carry maximum fines of $250,000, or two times the loss, with restitution possible on both counts.
Ashcraft is scheduled to appear Friday, August 23, 2013 at 1:30 p.m. before United States District Court Magistrate Judge Karen L. Litkovitz to answer the charges.Stewart commended the cooperative investigation of this case by FBI and Secret Service agents, Ohio Department of Commerce, Division of Securities staff, and Assistant U.S. Attorneys Timothy Mangan and Emily Glatfelter, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Maryland Man, Richard Mcneal, Sentenced for Trafficking in Counterfeit GoodsRead the Press Release
RICHARD MCNEAL, age 47, a resident of Randallstown, MD, was sentenced in federal court today by U.S. District Judge Mary Ann Vial Lemmon for Trafficking in Counterfeit Goods, announced United States Dana J. Boente. MCNEAL was sentenced to 6 months incarceration, followed by 3 years of supervised release, and ordered to pay full restitution in the amount of $5,650 to the victims.
According to Court documents, the defendant travelled to New Orleans on or about January 8, 2012 in order to sell counterfeit tickets to the 2012 Allstate BCS National Championship game. Because there were no available hotel rooms in New Orleans, the defendant travelled to Picayune, Mississippi and stayed at a Days Inn Motel. While staying at the Days Inn, the defendant sold four counterfeit tickets, for a total of $3,000, to victims who wanted to attend the BCS National Championship Game. When the victims tried to enter the Mercedes Benz Super Dome to attend the game, the tickets were rejected for being counterfeit. The victims then returned to Picayune, Mississippi and reported the crime to local police.
On or about February 2, 2013, the defendant travelled to New Orleans to sell counterfeit tickets to the Super Bowl. During the events leading up to the Super Bowl, Homeland Security Investigations (HSI) and the National Football League (NFL) set up the NFL Ticket Reconciliation Office (TRO), as part of an effort to investigate counterfeit Super Bowl ticket sales. On February 3, 2013, at approximately 11:45 a.m., HSI Special Agents were contacted by a victim who sought to verify the authenticity of two tickets she had purchased from the defendant for a total of $1,650. After it was determined that the tickets were counterfeit, the victim provided the defendant’s contact information to HSI Special Agents.
On February 3, 2013, at approximately 12:10 p.m., HSI Special Agents, acting in an undercover capacity, arranged to meet the defendant at a local coffee shop in order to purchase Super Bowl tickets. At the coffee shop, the defendant offered to sell two Super Bowl tickets for a total of $2,600, to an undercover HSI Special Agent. Officers of the New Orleans Police Department who were working with the HSI Special Agents, then arrested the defendant after it was determined that the tickets were counterfeit.
On February 3, 2013, at approximately 2:40 p.m., a second victim entered the TRO and was in possession of two counterfeit tickets he had purchased from the defendant for a total of $1000. The victim had the defendant’s telephone number, and positively identified a photo of the defendant as the person who had sold him the counterfeit tickets.
This case was investigated by Homeland Security Investigations, the Picayune Police Department, the Pearl River County District Attorney’s Office, the New Orleans Police Department and the Orleans Parish District Attorney’s Office. This case was prosecuted by Assistant U.S. Attorney G. Dall Kammer.
Man Sentenced to 6.5 Years in Federal Prison for Sexual Abuse on the Umatilla Indian ReservationRead the Press Release
The abuse began when the victim was 14 years oldPORTLAND, Ore. — U.S. District Judge Anna J. Brown sentenced Thomas Lee Bear, 31, of Lewiston, Idaho, yesterday to 78 months in federal prison, to be followed by 10 years of supervised release. In January 2013, Bear pled guilty before Judge Brown to sexual abuse of a minor. After Bear completes his prison term, he will be required to register as a sex offender and undergo sex offender treatment. Bear has been in the custody of the U.S. Marshals Service since his arrest in this case in July 2012.
“It is absolutely repugnant for grown men to use the internet to prey upon teenage girls,” said U.S. Attorney Amanda Marshall. “The rate of sexual abuse against girls in Indian Country is tragically high. The prison sentence in this case should serve as a warning to anyone who would do harm to the children of Tribal Nations.”
Bear admitted to having sexual intercourse with a girl on the Umatilla Indian Reservation in the fall of 2011. The victim, who was 14 years old at the time the sex abuse began, is an enrolled member of the Confederated Tribes of the Umatilla Indian Reservation. Bear further admitted that he used a social networking website to persuade, induce, entice, and coerce the victim into having sexual intercourse.
This case was investigated by the Umatilla Tribal Police Department and the FBI’s Office in Pendleton, Oregon. The case was prosecuted by Assistant U.S. Attorney Craig Gabriel.
Man Pleads Guilty to Fraudulently Obtaining United States Citizenship and Bribing Federal OfficialRead the Press Release
ATLANTA – Hakeem Omar pleaded guilty in federal court to fraudulently obtaining his United States citizenship and for his role in a bribery conspiracy.
“This defendant’s attempts to subvert the immigration process by offering bribes to a federal agent were unsuccessful,” said United States Attorney Sally Quillian Yates. “The United States is the land of promise for many, but we are also a land of laws. Bribing a federal agent is against the law, and will only lead to jail and deportation, not U.S. citizenship.”
“Maintaining the integrity of our immigration system is a core mission of the Department of Homeland Security,” said David P. D’Amato, special agent in charge of ICE’s Office of Professional Responsibility (OPR) for the Southeast Region. “Those who seek to undermine the law through bribery and corruption will be investigated, arrested and brought to justice. This guilty plea should be a strong warning that OPR and the U.S. Attorney’s Office take this crime seriously and will prosecute it to the fullest extent of the law.”
According to United States Attorney Yates, the charges and other information presented in court: Beginning in September 2010, and continuing until at least July 2012, Omar paid a series of bribes to a Special Agent with the Department of Homeland Security who was working in an undercover capacity. In exchange for the bribes, Omar sought immigration benefits as well as other benefits. Over a two-year period, he paid thousands of dollars to the undercover special agent for what he believed was assistance with his immigration status in the United States, including obtaining United States citizenship through naturalization.
Omar, 31, of Atlanta, Ga., could receive a maximum sentence of five years in prison and a fine of up to $250,000. The defendant will be stripped of his fraudulently obtained U. S. citizenship, and likely faces removal from the United States. However, in determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Sentencing is scheduled for October 24, 2013, at 10 a.m., before United States District Judge Steven P. Jones.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility.
Assistant United States Attorney Skye Davis is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.Lower Brule Man Pleads Guilty to Abusive Sexual Contact of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that Richard Johnson, age 49, of Lower Brule, South Dakota, appeared before U.S. District Judge Roberto A. Lange on August 19, 2013, and pled guilty to the Indictment that charged him with Abusive Sexual Contact of a Minor.
The maximum penalty upon conviction is any term of years up to life of imprisonment, a $250,000 fine, or both; a mandatory minimum term of 5 years of supervised release and an additional 5 years of supervised release upon revocation; and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an incident that happened between April 30, 2012 and August 19, 2012, when the victim, who had not attained the age of 12 years, was living in a relative’s home in West Brule, South Dakota. The victim was in bed one night wearing a nightgown, and Johnson knowingly engaged in, and attempted to engage in, sexual contact with the victim.
The investigation was conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Johnson was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for November 5, 2013.Louisiana State Representative Girod Jackson Charged with Federal Tax ViolationsRead the Press Release
Louisiana State Representative GIROD JACKSON, age 41, was charged today in a three count Bill of Information for violating provisions of the United States Tax Code. Specifically, Jackson was charged with one count of Making a Fraudulent Statement on a Tax Return, a felony, and two counts of Willful Failure to File Tax Returns, misdemeanors.
According to court documents, JACKSON who represents District 87, an area that includes portions of the West Bank of Jefferson Parish, misrepresented on his federal tax return for 2006 the total income received by his company, Diversified Ventures, LLC. In 2007 and 2008, despite having earned sufficient income from Diversified Ventures and other sources and having filed requests for extensions of time to file his tax returns, JACKSON failed to file any returns at all. JACKSON was elected to office in 2007 and served his first full year as State Representative for District 87 in 2008.
If convicted, JACKSON faces the possibility of up to three years in prison and a $100,000 fine for Count 1 and up to one year in prison and a $100,000 fine for Counts 2 and 3.
United States Attorney Dana Boente cautions that a Bill of Information is only a charge and that JACKSON’s guilt must be established beyond a reasonable doubt.
The investigation was led by the Internal Revenue Service and is being prosecuted by Assistant United States Attorney Daniel Friel.
(Download Bill of Information )
Leader of Anchorage Drug Conspiracy and Rap Label pleads guilty to drug charges in cocaine importation conspiracyRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that the leader of a drug conspiracy pled guilty in federal court. The 13 other co-conspirators have previously pled guilty to federal drug charges or have been sentenced for their roles in the conspiracy.
Terrance Fleming a/k/a, “Baydilla,” 32, of Anchorage, Alaska, pled guilty today in Anchorage to Count 1 of the Indictment, drug conspiracy, admitting that he imported between 50 and 150 kilograms of cocaine to Alaska between 2009 and 2012. In a plea agreement filed with the court, Fleming admitted that he was the leader and organizer of the conspiracy, and that he imported the cocaine from Nevada and Washington to be distributed in Anchorage and Fairbanks.
Chief U.S. District Court Judge Ralph R. Beistline scheduled Fleming’s sentencing for November 2013. Fleming has been in federal custody since his arrest in an Atlanta, Georgia suburb in August 2012.
Fleming was the owner and operator of a local rap and hip hop recording label in Anchorage known as “Out Da Cutt” or “ODC” Entertainment and the leader of a rap and hip hop group known as “UNDB” (Up North ‘D’ or Dope Boys). Fleming and other members of the conspiracy attempted to conceal their drug trafficking by claiming they were involved in a legitimate business, specifically, that they were “artists,” employees, or promoters of this Anchorage recording label and members of the rap and hip hop performance group. Members of this conspiracy would record rap and hip hop songs, post videos on Youtube.com, and perform local shows in Anchorage and Fairbanks. Much of their music glorified the lifestyle of selling illegal narcotics and committing other crimes.
The lavish and extravagant lifestyle portrayed in their music and videos was supported by their sales of illegal narcotics. As part of his plea agreement with the government, Fleming agreed to forfeit expensive vehicles, cash, and jewelry, including necklaces with pendants displaying the words “King of Alaska, AJC” and “Baydilla”. The seized jewelry alone has been appraised at more than $200,000.
Fleming was indicted along with 13 other members of the conspiracy located in Anchorage and Fairbanks. Christopher Anderson was previously sentenced to 14 months in prison on November 2, 2012. DeMarr Moultrie was sentenced to 40 months in prison on May 1, 2013. Jeraelyn Hill was sentenced to 66 months in prison on May 28, 2013. Jerry Wormley was sentenced to 36 months in prison on May 31, 2013. Rock Phelps II was sentenced to 18 months in prison on June 14, 2013. Brent Gunnels was sentenced to 6 months in prison on August 2, 2013. Mihla Hall was sentenced to 28 months in prison on August 21, 2013.
Donnell Johnson, Joshua Mustovich, Antonio Fleming, Dalon Johnson, Tevoris Carter, and Emma Shine, have all pled guilty for their roles in connection with the conspiracy and await sentencing.
Fleming faces a maximum sentence of life imprisonment on the drug conspiracy.
Ms. Loeffler commended the Federal Bureau of Investigation, the Drug Enforcement Administration, the United States Postal Service, the Internal Revenue Service Criminal Investigation Division, and the Anchorage Police Department for the investigation leading to the successful prosecution of FlemingLeader of Robbery Crew Convicted of Robbery and Firearms Offenses, Including Armed Robberies in Yonkers, Poughkeepsie, and LynbrookRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that LOUIS MCINTOSH, 32, was convicted today of 11 robbery and firearms counts after a nine-day trial before United States District Judge Sidney H. Stein in Manhattan federal court.
Manhattan U.S. Attorney Preet Bharara stated: “Today’s verdict marks the close of Louis McIntosh’s lengthy and violent crime spree of armed robberies, shootings, pistol-whipping and stun gun abuses in Westchester County and elsewhere. The close cooperation between federal and local law enforcement, as happened here, is one of our best weapons against violent crime.”
According to the indictment and the evidence at trial:
On or about April 30, 2010, MCINTOSH and other co-conspirators robbed narcotics dealers in the vicinity of Cliff Street in Yonkers, New York, during which robbery MCINTOSH fired a shotgun and a co-conspirator fired a handgun. A victim was shot multiple times in the lower body. On or about September 26, 2010, MCINTOSH and other co-conspirators robbed an individual business owner in his home in Lynbrook, New York, during which robbery MCINTOSH held the victim at gunpoint and assaulted him with a stun gun. On or about October 28, 2010, MCINTOSH and other co-conspirators robbed a card game at a men’s club in Poughkeepsie, New York, during which MCINTOSH pistol-whipped two victims and discharged a firearm.
MCINTOSH, 32, of the Bronx, New York, was convicted of the following 11 counts: (1) participating in a conspiracy to commit robberies from in or about 2009 through in or about 2012: (2) using, carrying, or possessing firearms in connection with the robbery conspiracy; (3) committing a robbery on or about April 30, 2010, in Yonkers; (4) using, carrying, possessing, and discharging firearms in connection with the April 30, 2010 robbery; (5) committing a robbery on or about September 26, 2010, in Lynbrook; (6) using, carrying, possessing, and brandishing firearms in connection with the September 26, 2010 robbery; (7) committing a robbery on or about October 28, 2010, in Poughkeepsie; (8) using, carrying, possessing, and discharging firearms in connection with the October 28, 2010 robbery; (9) possessing a Cugir .223 caliber auto-loading rifle after having been previously convicted of a felony; (10) possessing a Ruger 9 millimeter handgun after having been previously convicted of a felony; and (11) possessing a Bushmaster .223 caliber rifle after having been previously convicted of a felony.
Mr. Bharara praised the outstanding investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and the Westchester County Department of Public Safety, and thanked the Westchester County District Attorney’s Office for its assistance in the investigation.
MCINTOSH faces a maximum penalty of life in prison, and a mandatory minimum sentence of 85 years in prison. MCINTOSH’s sentencing is scheduled for November 21, 2013, at 4:30 p.m. before Judge Stein.
A number of co-conspirators were also prosecuted in connection with this case. Among other individuals, Turhan Jessamy previously pleaded guilty to using, carrying, possessing, and discharging firearms, and was sentenced by United States District Judge Kenneth M. Karas to 10 years in prison. Tyrell Rock previously pleaded guilty to using, carrying, possessing, and discharging firearms, and was sentenced by Judge Karas to 10 years in prison. Neil Morgan previously pleaded guilty to using, carrying, possessing, and discharging firearms, and was sentenced by Judge Karas to 10 years in prison. Quincy Williams previously pleaded guilty to using, carrying, possessing, and brandishing firearms, and was sentenced by Judge Karas to 7 years in prison.
The prosecution is being handled by the Office’s Violent Crimes Unit. Assistant U.S. Attorneys Sarah Krissoff and Jessica Masella are in charge of the prosecution.
McIntosh et al. S3
Last Defendant Is Sentenced in La Familia Prosecutions Dallas Man Sentenced to 28 Years in Federal PrisonRead the Press Release
51 Defendants Convicted and Sentenced Since June 2011 OCDETF Takedown
DALLAS — Sergio Moreno Vidales, 37, of Dallas, was sentenced yesterday by U.S. District Judge Ed Kinkeade to 336 months (28 years) in federal prison following his conviction at trial in February 2013 on conspiracy, drug and firearms charges. Vidales is the 51st defendant to be arrested, convicted and sentenced as the result of a June 7, 2011, widespread Organized Crime Drug Enforcement Task Force (OCDETF) takedown in North Texas of defendants running a methamphetamine distribution conspiracy related to the La Familia Mexican drug cartel. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Over the course of the conspiracy, agents seized approximately 100 kilograms of methamphetamine, several kilograms of cocaine, $725,000 in cash and numerous firearms and vehicles. Sentences of the 51 convicted defendants ranged from 27 months to 336 months in federal prison.
“Targeting drug cartels that have infiltrated north Texas and jeopardized the safety and security of our communities will continue to be a priority in this district,” said U.S. Attorney Saldaña. “I commend the dedicated efforts of the DEA, who led this OCDETF investigation, as well as the dedicated men and women in numerous federal, state and local agencies who worked hand-in-hand with them to strategically infiltrate and disrupt this organization.”
The jury in Vidales’ trial deliberated just 35 minutes before convicting him on all counts of the indictment: conspiracy to possess with intent to distribute and to distribute 500 grams or more of methamphetamine, possession with intent to distribute 500 grams or more of methamphetamine, possession of a firearm in furtherance of a drug trafficking crime and illegal alien in possession of a firearm. Vidales had been previously deported from the U.S. to Mexico.
On June 7, 2011, the DEA, with assistance from the Texas Department of Public Safety (DPS), executed a search warrant at a residence in Seagoville, Texas. When law enforcement entered the residence, they found Vidales in bed with his hands behind his head. Another person in the bedroom with him ran to the closet and was arrested. Vidales refused to comply when agents ordered him to show his hands, so they pulled him off the bed. Law enforcement found a loaded 9mm semi-automatic handgun underneath the pillow where Vidales had his head and hands. A further search of the home revealed approximately1.2 kilograms of methamphetamine, several scales, a bullet-proof vest, a safe, nearly $6,000 in cash, drug ledgers and six additional firearms including another handgun, shotguns and a rifle. In addition, an inert hand grenade and 12 cell phones were seized.
The cases were prosecuted by Executive Assistant U.S. Attorney Jennifer Tourje and Assistant U.S. Attorney George Leal. Assistant U.S. Attorney John de la Garza handled the forfeitures.
Kentwood Man, Keith J. Pendarvis, Indicted for Failure to Register as Sex OffenderRead the Press Release
KEITH J. PENDARVIS, age 38, a resident of Kentwood, Louisiana, was charged today in an indictment by a Federal Grand Jury for failure to register as a sex offender, announced U. S. Attorney Dana J. Boente.
If convicted of the failure to register charge, PENDARVIS faces a maximum term of imprisonment of 10 years, a fine of $250,000 and up to 3 years of supervised release.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the United States Marshals Service and the Tangipahoa Parish Sheriff’s Office and prosecution of this case is being handled by Project Safe Childhood Coordinator, Assistant U. S. Attorney Brian M. Klebba.
(Download Indictment )
Justice and Education Departments Announce New Research Showing Prison Education Reduces Recidivism, Saves Money, Improves EmploymentRead the Press Release
Attorney General Eric Holder and Secretary of Education Arne Duncan today announced research findings showing that, on average, inmates who participated in correctional education programs had 43 percent lower odds of returning to prison than inmates who did not. Each year approximately 700,000 individuals leave federal and state prisons; about half of them will be reincarcerated within three years. The research, funded by the Justice Department’s Bureau of Justice Assistance, was released today by the RAND Corporation.
“These findings reinforce the need to become smarter on crime by expanding proven strategies for keeping our communities safe, and ensuring that those who have paid their debts to society have the chance to become productive citizens,” said Attorney General Holder. “We have an opportunity and an obligation to use smart methods – and advance innovative new programs – that can improve public safety while reducing costs. As it stands, too many individuals and communities are harmed, rather than helped, by a criminal justice system that does not serve the American people as well as it should. This important research is part of our broader effort to change that.”
The findings, from the largest-ever analysis of correctional educational studies, indicate that prison education programs are cost effective. According to the research, a one dollar investment in prison education translates into reducing incarceration costs by four to five dollars during the first three years after release, when those leaving prison are most likely to return.
“Correctional education programs provide incarcerated individuals with the skills and knowledge essential to their futures,” said Secretary of Education Duncan. “Investing in these education programs helps released prisoners get back on their feet—and stay on their feet—when they return to communities across the country.”
With funding from The Second Chance Act (P.L. 110-199) of 2007, the RAND Corporation’s analysis of correctional education research found that employment after release was 13 percent higher among prisoners who participated in either academic or vocational education programs than among those who did not. Those who participated in vocational training were 28 percent more likely to be employed after release from prison than those who did not receive such training.
The report is a collaborative effort of the Departments of Justice and Education, two of 20 federal agencies that make up the federal interagency Reentry Council. The Reentry Council’s members are working to make communities safer by reducing recidivism and victimization; assisting those who return from prison and jail in becoming contributing members of their communities; and saving taxpayer dollars by lowering the direct and collateral costs of incarceration. Attorney General Holder chairs the Reentry Council which he established in January 2011.
To view the research, please visit: www.bja.gov/Publications/RAND_Correctional-Education-Meta-Analysis.pdf.
For more information about the federal interagency Reentry Council, please visit: http://csgjusticecenter.org/nrrc/projects/firc/.Justice Department to File New Lawsuit Against State of Texas over Voter I.D. LawRead the Press Release
The Department of Justice announced today that it will file a new lawsuit against the State of Texas, the Texas Secretary of State, and the Director of the Texas Department of Public Safety over the State’s strict voter photo identification law (SB 14). The United States’ complaint seeks a declaration that SB 14 violates Section 2 of the Voting Rights Act, as well as the voting guarantees of the Fourteenth and Fifteenth Amendments to the United States Constitution.
Separately, the Department is filing a motion to intervene as a party and a complaint in intervention against the State of Texas and the Texas Secretary of State in the ongoing case of Perez v. Perry (W.D. Tex.), which concerns the state’s redistricting laws. The United States had already filed a statement of interest in this case last month. Today’s action represents a new step by the Department in this case that will allow the United States to formally present evidence about the purpose and effect of the Texas redistricting plans.
“Today’s action marks another step forward in the Justice Department’s continuing effort to protect the voting rights of all eligible Americans,” said Attorney General Eric Holder. “We will not allow the Supreme Court’s recent decision to be interpreted as open season for states to pursue measures that suppress voting rights. The Department will take action against jurisdictions that attempt to hinder access to the ballot box, no matter where it occurs. We will keep fighting aggressively to prevent voter disenfranchisement. We are determined to use all available authorities, including remaining sections of the Voting Rights Act, to guard against discrimination and, where appropriate, to ask federal courts to require preclearance of new voting changes. This represents the Department’s latest action to protect voting rights, but it will not be our last.”
In the voter ID lawsuit, the United States’ complaint contends that SB 14 was adopted with the purpose, and will have the result, of denying or abridging the right to vote on account of race, color, or membership in a language minority group. The complaint asks the court to prohibit Texas from enforcing the requirements of its law, and also requests that the court order bail-in relief under Section 3 of the Voting Rights Act. If granted, this would subject Texas to a new preclearance requirement.
In the Department’s other filing announced today, the United States seeks a declaration that Texas’s 2011 redistricting plans for the U.S. Congress and the Texas State House of Representatives were adopted with the purpose of denying or abridging the right to vote on account of race, color, or membership in a language minority group in violation of Section 2, as well as the voting guarantees of the Fourteenth and Fifteenth Amendments to the United States Constitution. The complaint also requests that the court order bail-in pursuant to Section 3(c) of the Voting Rights Act, to remedy persistent, intentional discrimination in voting within the State of Texas.
“The Department of Justice will use all the tools it has available to ensure that each citizen can cast a ballot free from impermissible discrimination,” said Jocelyn Samuels, Acting Assistant Attorney General for the Justice Department’s Civil Rights Division. “The right to the franchise is one of the most fundamental promises of American democracy.”
If the federal courts in either the redistricting or voter identification cases find that the State of Texas should be covered by Section 3(c), then the State would be required to submit voting changes to the U.S. Attorney General or to the federal court for review prior to implementation to ensure that the changes do not have a discriminatory effect or a discriminatory purpose. The Department has previously participated as amicus in the Perez case, and last month advised the federal court in Texas that the Department believed the imposition of a new preclearance requirement on Texas under Section 3(c) of the Voting Rights Act was appropriate. Today’s filing asks the Court to allow the Department to participate as a party in further proceedings on the question of whether Texas should be made subject to Section 3(c).
A federal court in the District of Columbia has previously held that Texas had failed to meet its burden of proving that its 2011 redistricting plans and its 2011 voter identification law were not discriminatory under Section 5 of the Voting Rights Act. These decisions were vacated after the Supreme Court’s June decision in Shelby County v. Holder. The Supreme Court’s decision left unaffected the non-discrimination requirements of Section 2 of the Voting Rights Act, as well as the bail-in provisions of Section 3 of the Voting Rights Act, and today’s filings seek to enforce those important protections.
The filings in the Texas redistricting and Texas voter identification matters will be available on the Civil Rights Division’s website later today. More information about the Voting Rights Act and other federal voting laws is available on the Department of Justice website at www.justice.gov/crt/about/vot/. Complaints about discriminatory voting practices may be reported to the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Related Materials:
Texas ID Complaint
Motion to Intervene (Western District of Texas)
Motion to Intervene Exhibit 1Jury Convicts KC Man of Illegally Posessing a FirearmRead the Press Release
Project Ceasefire
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was convicted in federal court today of illegally possessing a firearm, his second federal conviction for that offense.
Mario A. Thibeaux, 39, of Kansas City, was found guilty of being a felon in possession of a firearm. This is Thibeaux’s second federal conviction for being a felon in possession of a firearm. He also pleaded guilty to the offense on March 31, 2005, and in that case was sentenced to 63 months in federal prison.
Evidence introduced during the trial indicated that Thibeaux was in possession of a Bersa .380-caliber semi-automatic pistol on Feb. 22, 2013. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. In addition to his prior felony conviction for being a felon in possession of a firearm, Thibeaux has two prior felony convictions for possession of a controlled substance and a prior felony conviction for distributing a controlled substance.
Thibeaux was arrested on Feb. 22, 2013, after Kansas City, Mo., police officers were called at about 2 a.m. to investigate an outside disturbance involving a party armed with a gun. The officers were given information that there were two males and a female fighting and one of the males was waving a gun around. As the officers arrived, they observed a maroon Dodge Durango apparently stuck in the snow in the middle of the street. Two males and a female were apparently trying to free the vehicle from the stuck position in the snow. The officers asked the individuals to show their hands, but Thibeaux failed to comply with the officers’ orders. Thibeaux moved to the back of the vehicle, reached into the pocket of the vest he was wearing and threw a black object towards the driver’s side of the vehicle.
The object thrown by Thibeaux was recovered and determined to be a loaded Bersa .380-caliber, semi-automatic pistol. Thibeaux was determined to be a convicted felon and placed under arrest.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about four hours over two days before returning the guilty verdict to U.S. District Judge Greg Kays, ending a trial that began Tuesday, Aug. 20, 2013.
Under federal statutes, Thibeaux is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000. 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 D. Michael Green. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Ceasefire
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.Jicarilla Apache Man Receives Sixty-Six Month Prison Sentence for Voluntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Kevin Cavazone, 30, a member of the Jicarilla Apache Nation who resides in Dulce, N.M., was sentenced this afternoon to 66 months in federal prison followed by three years of supervised release for his voluntary manslaughter conviction.
Cavazone pleaded guilty on May 14, 2013, to a felony information charging him with voluntary manslaughter. According to court filings, Cavazone killed David Cachucha, a Jicarilla Apache man, on Nov. 22, 2011, by stabbing him repeatedly in the torso. The crime took place on the Jicarilla Apache Indian Reservation during a fight between Cavazone and the victim. During his plea hearing, Cavazone admitted stabbing the victim in the torso during a fight that began after the two men and several others had been drinking alcohol.
This case was investigated by the Albuquerque and Farmington offices of the FBI and the Jicarilla Apache Tribal Police Department, and was prosecuted by Assistant U.S. Attorney Mark T. Baker.
Jamaican National Charged Again with Fraudulently Receiving Medicaid BenefitsRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Georgia Bowen, a/k/a Georgia Bennett, 38, of Lackawanna, N.Y., was arrested and charged by criminal complaint with health care fraud, identity theft, and unauthorized use of social security numbers. The charges carry a maximum sentence of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney John E. Rogowski, who is handling this case, stated that according to the complaint, in December 2010, Bowen, a native and citizen of Jamaica, applied for Medicaid benefits through the Erie County Department of Social Services. The defendant claimed to be a United States citizen and utilized a social security number assigned to another person. In January 2011, Erie County terminated Bowen’s Medicaid eligibility after learning the social security number utilized by Bowen was issued to another person. During that time however, Medicaid was billed over $7,000 for medical services rendered to Bowen.
In November 2011, the defendant submitted another application to Erie County Department of Social fraudulently claiming to be citizen of the United States and using a social security number assigned to yet another person. Thereafter, Medicaid was billed $12,300 for medical services rendered to Bowen.
Previously, in August 2010, Bowen was sentenced in federal court to two years in prison for identity theft. The defendant used the name and social security number of another person, causing over $13,000 in Medicaid benefits to be paid through the Erie County Department of Social Services for medical services she had received. As a result of that conviction, removal proceeding against Bowen were initiated by the Department of Homeland Security. The removal proceeding is currently being litigated before the Immigration Court.
The arrest was the result of an investigation on the part of Special Agents of the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Jacksonville, Il Man Charged with Methamphetamine OffensesRead the Press Release
Springfield, Ill. – A Jacksonville, Ill., man, James Trotter, 27, no street address available, arrested yesterday, made his initial appearance this afternoon in federal court in Springfield before U.S. Magistrate Judge Byron G. Cudmore. Trotter was ordered to remain detained in the custody of the U.S. Marshals Service. A trial date of Oct. 1, 2013, has been scheduled before U.S. District Judge Sue E. Myerscough.
The indictment, returned on Aug. 7, 2013, but sealed pending Trotter’s arrest and initial court appearance, alleges that from about Feb. 7, 2013, to May 31, 2013, Trotter conspired with others to manufacture and distribute methamphetamine. Trotter is also charged with two counts of possession of methamphetamine with the intent to distribute; one count of possession of pseudoephedrine with intent to manufacture meth; and three counts of using or maintaining a building to manufacture meth: at 760 W. Douglas Ave.; 1033 E. Morton Ave., Lot 26; and 102 S. Marnico Lane, Jacksonville, Ill.
If convicted, the statutory penalty for conspiracy to manufacture methamphetamine is five to 40 years in prison; for each count of the offenses of possession of methamphetamine with intent to distribute; possession of pseudoephedrine with intent to manufacture meth; and for maintaining a building for the purpose of manufacturing methamphetamine, the statutory penalty is up to 20 years in prison.
The charge is the result of an investigation by the Illinois State Police, Jacksonville Police Department, and the Morgan County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Bryan D. Freres in cooperation with the office of Morgan County State’s Attorney Robert V. Bonjean III.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Jackson Man Pleads Guilty to Possession of A Firearm by A Convicted FelonRead the Press Release
Jackson, Miss – Roderick Sutton, 29, of Jackson, pled guilty in U.S. District Court today to possession of a firearm by a convicted felon, announced U.S. Attorney Gregory K. Davis.
On April 6, 2011, Sutton was driving a vehicle that was pulled over by Jackson Police Officers for a traffic violation. The officers questioned Sutton who told them there was a gun in the vehicle and that he was a convicted felon. The officers found the gun, and Sutton was arrested for being a felon in possession of a firearm. Sutton had been previously convicted of multiple drug offenses.
Sutton will be sentenced by U.S. District Judge Henry T. Wingate on November 6, 2013, at 10:30 a.m. and faces a maximum penalty of 10 years in prison and a $250,000.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jackson Police Department. Assistant U.S. Attorney Mike Hurst is prosecuting the case.
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Jackson Man Pleads Guilty to Possession of A Firearm by A Convicted FelonRead the Press Release
Jackson, Miss- Julian Michael Thompson, 33, of Jackson, was sentenced in U.S. District Court today to 94 months in federal prison followed by five years of supervised release for possession with intent to distribute more than 28 grams of cocaine base, announced U.S. Attorney Gregory K. Davis. Thompson was also ordered to pay restitution in the amount of $2,940.
Thompson was indicted following an extensive investigation, dubbed “Operation Paperchase”, targeting illegal narcotics distribution in the City of Jackson.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Drug Enforcement Administration, U.S. Marshals Service, Gulf Coast HIDTA, and Mississippi Bureau of Narcotics. It was prosecuted by Assistant United States Attorney Erin Chalk.
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Individual Charged with Brokering Uranium Deal Intended for Supply to IranRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce today that Patrick Campbell, 33, of Freetown, Sierra Leone, was arrested yesterday in Queens, NY as a result of an investigation conducted by the ICE-HSI. Campbell made his initial appearance earlier today in the Eastern District of New York.
According to the criminal complaint filed in the Southern District of Florida, Patrick Campbell was charged with brokering the supply of goods which the defendant knew were destined and intended for supply to Iran, in violation of the International Emergency Economic Powers Act (IEEPA) Title 50, United States Code, Section 1701, 1705 and the Iranian Transaction Regulations, 31 CFR 560.416, 560,204 and 560.203. If convicted, Campbell faces a possible statutory maximum sentence of up to 20 years in prison, followed by a term of three years of supervised release, and a possible $1,000,000 fine.
The criminal complaint alleges that on August 21, 2013, Campbell traveled to the United States from Sierra Leone and brought with him a sample of uranium, concealed in the soles of the shoes in his luggage, which he believed was to be provided to a representative of individuals seeking to obtain uranium for supply to Iran.
Mr. Ferrer commended the investigative efforts of ICE-HSI, the Port Authority of New York and the New Jersey Police Department. This case is being prosecuted by Assistant United States Attorney Michael Walleisa.
A criminal complaint is only an accusation and the defendant is presumed innocent until proven guilty.
Attachment:
Patrick Campbell Complaint (PDF)
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.
Indictment Charges New London Man with Federal Firearms OffensesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned a two-count indictment charging MAURICE L. MILLIGAN, 34, of New London with firearms offenses. The indictment was returned on August 21, 2013.
As alleged in the indictment, between April 22 and April 25, 2013, MILLIGAN possessed a loaded 9mm semi-automatic pistol with an obliterated serial number. Prior to April 2013, MILLIGAN had been convicted in the Queens County (N.Y.) Supreme Court of third degree criminal possession of a loaded firearm and second degree robbery.
MILLIGAN is charged with one count of possession of a firearm by a convicted felon, which carries a maximum term of imprisonment of 10 years imprisonment and a fine of up to $250,000, and one count of possession of a firearm with an obliterated serial number, which carries a maximum term of imprisonment of five years and a fine of up to $250,000.
This matter has been assigned to U.S. District Judge Vanessa L. Bryant in Hartford.
Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the New London Police Department and the Office of the State’s Attorney for the Judicial District of New London. The case is being prosecuted by Assistant U.S. Attorney John H. Durham.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Idaho Prison Inmate Admits Mail FraudRead the Press Release
BOISE – Mark Anthony Brown, 53, an inmate at the Idaho Correctional Center in Orofino, pleaded guilty today in United States District Court to two counts of mail fraud, U.S. Attorney Wendy J. Olson announced. Brown was indicted by a federal grand jury in Boise on March 12, 2013.
According to court documents, from September 2007 to February 28, 2013, Brown devised a scheme to fraudulently obtain money from various class action lawsuits and large-scale bankruptcies. According to the plea agreement, Brown submitted numerous claim forms in which he falsely represented himself as a class member or creditor. He then mailed the claim forms to administrators of the settlements in order to receive settlement proceeds, and deposited the proceeds he received into his Idaho Department of Correction trust account, and into several different investment accounts, all through the use of the United States Mail. According to the plea agreement, Brown received approximately $60,000 as proceeds of his criminal activity, which he agreed to forfeit.
Each count of mail fraud is punishable by up to 20 years in federal prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for November 13, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case is being investigated by the United States Postal Inspection Service with the cooperation of the Idaho Department of Correction.
Houston Woman Guilty of Dealing Methamphetamine in East TexasRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 24-year-old Houston, Texas woman has pleaded guilty to drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Lindsay Mason pleaded guilty to possession with intent to distribute methamphetamine today before U.S. Magistrate Judge John D. Love.
According to information presented in court, on June 29, 2011, Mason agreed with others to acquire and distribute methamphetamine in the Eastern District of Texas and elsewhere. Mason was personally responsible for assisting in the possession of 49.3 grams of pure methamphetamine. A federal grand jury returned an indictment on Feb. 27, 2013, charging Mason and three others with drug trafficking violations.
Mason faces a minimum of five years in federal prison at sentencing. A sentencing date has not been set.
This case was investigated by the Drug Enforcement Administration, the Gregg county CODE Unit, the Overton Police Department and the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Bill Baldwin.
Houston Investment Manager Pleads Guilty in Utah for Role in $72 Million Fraud SchemeRead the Press Release
Robert Andres, 62, an investment manager based in Houston, pleaded guilty yesterday in federal court in Salt Lake City for his role in a $72 million investment fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney David B. Barlow for the District of Utah, Special Agent in Charge Mary Rook of the FBI’s Salt Lake City Field Office, and Special Agent in Charge Paul A. Camacho of the Internal Revenue Service-Criminal Investigation (IRS-CI) Las Vegas Field Office made the announcement.
Andres pleaded guilty on Aug. 21, 2013, to one count of wire fraud. He faces a maximum penalty of 20 years in prison and a fine of $250,000 when he is sentenced on Jan. 7, 2014.
According to the indictment and other publicly filed documents, Andres operated Winsome Investment Trust, an investment entity, and served as its sole manager, attorney and trustee. From October 2005 until at least January 2011, Andres recruited investors for Winsome by misrepresenting Winsome’s assets and asset allocation and the way in which funds were invested.
Between October 2005 and April 2007, Andres raised more than $39 million from Winsome investors by disseminating false and misleading Winsome balance sheets and by representing to investors that Andres would invest all of their funds in a trading program or a mostly automated trading business.
According to publicly filed documents, between April 2007 and January 2011, Andres used false and misleading information to raise an additional $32 million from new investors. Furthermore, Andres failed to disclose that new investors’ funds would be used to pay earlier investors. In addition, Andres used new investor funds to make purported “profit” payments to earlier investors to create the false impression that Winsome was profitable. During this period, Andres misappropriated approximately $2.2 million in investor proceeds for personal use, including hotel bills and living expenses.
This case was investigated by the FBI’s Salt Lake City Field Office and IRS-CI Las Vegas Field Office. The department thanks the Commodity Futures Trading Commission and the Securities and Exchange Commission for their assistance in the investigation. The case is being prosecuted by Trial Attorney Thomas B.W. Hall of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Jason R. Burt and Mark Y. Hirata for the District of Utah.Houston Investment Manager Pleads Guilty in Utah for Role in $72 Million Fraud SchemeRead the Press Release
SALT LAKE CITY – Robert Andres, 62, an investment manager based in Houston, pleaded guilty Wednesday afternoon in federal court in Salt Lake City for his role in a $72 million investment fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney David B. Barlow for the District of Utah, Special Agent in Charge Mary Rook of the FBI’s Salt Lake City Field Office, and Special Agent in Charge Paul A. Camacho of the Internal Revenue Service-Criminal Investigation (IRS-CI) Las Vegas Field Office made the announcement.
Andres pleaded guilty to one count of wire fraud. He faces a maximum penalty of 20 years in prison and a fine of $250,000 when he is sentenced on Jan. 7, 2014.
According to the indictment and other publicly filed documents, Andres operated Winsome Investment Trust, an investment entity, and served as its sole manager, attorney and trustee. From October 2005 until at least January 2011, Andres recruited investors for Winsome by misrepresenting Winsome’s assets and asset allocation and the way in which funds were invested.
Between October 2005 and April 2007, Andres raised more than $39 million from Winsome investors by disseminating false and misleading Winsome balance sheets and by representing to investors that Andres would invest all of their funds in a trading program or a mostly automated trading business.
According to publicly filed documents, between April 2007 and January 2011, Andres used false and misleading information to raise an additional $32 million from new investors. Furthermore, Andres failed to disclose that new investors’ funds would be used to pay earlier investors. In addition, Andres used new investor funds to make purported “profit” payments to earlier investors to create the false impression that Winsome was profitable. During this period, Andres misappropriated approximately $2.2 million in investor proceeds for personal use, including hotel bills and living expenses.
This case was investigated by the FBI’s Salt Lake City Field Office and IRS-CI Las Vegas Field Office. The department thanks the Commodity Futures Trading Commission and the Securities and Exchange Commission for their assistance in the investigation. The case is being prosecuted by Trial Attorney Thomas B.W. Hall of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Jason R. Burt and Mark Y. Hirata for the District of Utah.
Hollygrove Gang Member, Walter Conley, Pleads Guilty to Federal Rico and Murder ChargesRead the Press Release
WALTER CONLEY, age 25 and a resident of New Orleans, pled guilty today in federal court before U.S. District Judge Stanwood R. Duval, Jr., to various federal violations stemming from a 34-count indictment which charged CONLEY and several of his associates with participating in a violent drug gang that operated in the Hollygrove area of the City of New Orleans.
As part of his plea agreement, CONLEY agreed to plead guilty to conspiracy to commit RICO; conspiracy to use firearms in furtherance of a crime of violence and drug trafficking offense; participating in a non-fatal shooting in aid of racketeering, to wit: the assault with a dangerous weapon; using a firearm to murder Paul May on September 14, 2008; committing a carjacking in Jefferson Parish on January 15, 2010; and discharging a firearm during a crime of violence. Based on his guilty plea, CONLEY will face a sentence of up to life in prison plus an additional 10 years for the firearms offense.
On November 16, 2012, an indictment charged CONLEY, Tyronne Stevenson, Theron Goldston, Bernell Williams, Norman Ratcliff, and Mark Glenn with participating in a RICO conspiracy, drug conspiracy, firearms conspiracy, and several substantive acts of violence.
The indictment alleged the defendants were members and associates in fact of this criminal enterprise that operated in an area of the city that historically encompasses the Hollygrove area of New Orleans. Theron Golston pled guilty to a life sentence for his participation in the murder of Ms. Eula May Ivey.
Carey Jones also pled guilty to a life sentence for his participation in the RICO conspiracy, two separate non-fatal shootings, and for his participation in the murder of Ms. Eula May Ivey.
Bernell Williams pled guilty to participating in the RICO conspiracy, drug conspiracy, gun conspiracy, and to his involvement in two separate non-fatal shootings. He will face a sentence of 25 to 30 years in prison.
Ryan Carroll pled guilty to participating in the RICO conspiracy and to discharging a firearm during a drug trafficking crime and a crime of violence. He faces a sentence of 10 years to life.
China Stewart pled guilty to possession with the intent to distribute crack cocaine and will face a sentence of not more than five years.
On August 21, 2013 co-defendants Tyronne Stevenson and Mark Glenn both pled guilty. Stevenson will receive a sentence of 30 years and Glenn will receive a sentence of 25 years.
CONLEY, Stevenson, and Glenn will be sentenced on December 11, 2013 at 9:00am. CONLEY was the last defendant in this indictment to plead guilty.
U.S. Attorney Dana J. Boente stated:
“We are starting to see the results of the strong cases that are being made by the newly formed Multi-Agency Gang Unit (“MAG Unit”) as the indictments in this case were the first to be returned based on the investigations done by the members of the MAG Unit. These long sentences confirm that the agents built their investigations on solid evidence and should put other gang members on notice that the MAG Unit has the ability, the tools, and the knowledge to completely dismantle an entire criminal enterprise. This is the type of effort that the federal government will continue to put forth to combat violent crime.”
U.S. Attorney Boente would like to thank the federal agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives who took the lead role in this investigation and who have been steadfast in their resolve to bring these violent offenders to justice.
The Multi-Agency Gang Unit is a New Orleans Police Department led division which includes federal agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Marshals Service, as well as participants from the Orleans Parish Sheriff’s Office, the Louisiana State Police, State Probation and Parole, and the New Orleans District Attorney’s Office.
The case is being prosecuted by Assistant United States Maurice E. Landrieu, Jr.
Hastings Man Sentenced to 30 Years in Prison for Producing Child PornographyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 25-year-old Hastings man was sentenced for producing child pornography. United States District Judge Ann D. Montgomery sentenced Mark Matthew Cortes to 360 months in prison, along with a lifetime of supervised release, on one count of production of child pornography. Cortes was indicted on December 3, 2012, and pleaded guilty on April 9, 2013.
In his plea agreement, Cortes admitted that in November 2011, he knowingly persuaded a minor under the age of 12 to engage in sexually explicit conduct for the purpose of producing images of such conduct on his cellular telephone. Cortes also admitted that he transferred the images from his phone to his computer and then distributed them to another person. In addition, Cortes admitted that he committed a sexual act with the victim during production.
This case was the result of an investigation by the Minnesota Child Exploitation Task Force, which is sponsored by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney David P. Steinkamp.
Production of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
This case was brought as part of Project Safe Childhood (“PSC”), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”Hagerstown Pharmacist Sentenced to 30 Months in Prison for Health Care Fraud for Improperly Billing Medicare and MedicaidRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced David Russo, age 62, of Hagerstown, Maryland today to 30 months in prison, followed by one year of supervised release, for health care fraud in connection with a scheme to defraud Medicare and Medicaid by billing for prescriptions that Russo knew were not written for a legitimate medical purpose. Judge Russell also ordered that Russo pay a fine of $50,000, restitution of $200,146.33 and forfeit $39,000 in cash seized during a search of his pharmacy in 2010. As required by his plea agreement, Russo has surrendered his pharmacy license and agreed not to seek a new license in Maryland or any other state.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office.
“Russo's career as a pharmacist is over. Professionals, such as doctors and in this case a pharmacist, who knowingly abuse their power and the public trust are drug dealers, no different than the street dealers that sell illicit drugs,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “The abuse of diverted prescription pain medication is the fastest growing drug problem in our country and DEA remains committed to investigate this problem,” added Tuggle.
According to his plea agreement, Russo, a licensed pharmacist, owned and operated a pharmacy known as "Russo’s Rx," located at 25 North Cannon Avenue in Hagerstown. Russo admitted that from January 2009 through December 2010, he filled prescriptions for oxycodone, methadone and benzodiazepines that he knew were issued outside of the legitimate medical course and fraudulently billed Medicare and Medicaid for those prescriptions. The sheer number of prescriptions for oxycodone and methadone indicated that the prescriptions were not valid.
In addition, Russo accepted cash for Schedule II drugs when the drugs were not covered by Medicaid or Medicare. Schedule II drugs, including oxycodone and methadone, are approved for medical use and also have a very high abuse potential. They are regulated by the DEA. Another indicator that Russo knew the prescriptions were not for a legitimate medical purpose is that he "split" prescriptions, accepting an amount of cash at the time of a transaction and then accepting the remaining amount at a later time. Russo also filled two prescriptions for a Schedule II drug on the same day for the same patient but charged one to insurance and accepted cash for the other. The investigation showed that: customers would call ahead of time to ask Russo if he had oxycodone “in stock” and how much it would cost; customers traveled from out of state or in van loads to his pharmacy; and many customers were receiving the same “cocktail” prescription of oxycodone, Roxicodone and Xanax, which are well known in medicine and pharmacy as being extremely dangerous when combined because of the severe side effects and potential for addiction and abuse.
Further, Russo made gross sales of nearly $700,000 a month for several months in 2010 - a dramatic increase over previous months. He also made at least 55 cash deposits between December 1, 2009 and June 15, 2010 totaling $862,000. Russo even maintained a cash counting machine in his pharmacy.In December 2010, the DEA executed a search warrant at Russo’s Rx and seized $39,000 in cash from the pharmacy - cash that was earned from unlawful dispensation of oxycodone, methadone and benzodiazepines. Since that date, Russo admitted that he deleted thousands of unlawful prescriptions from his prescription database. From January 1, 2009 through December 31, 2010, Russo’s Rx dispensed over 700,000 dosage units of oxycodone and 117,000 dosage units for methadone for the invalid prescriptions. The vast majority of the remaining invalid prescriptions were for other schedule II narcotics and benzodiazepines. For all these prescriptions, Russo improperly billed, and received payment for, over $109,207.26 to Medicare and at least $90,939.07 to Medicaid, with a total approximate loss of $200,146.33.
United States Attorney Rod J. Rosenstein praised the DEA for its work in the investigation and thanked the Maryland Division of Drug Control and the Maryland Board of Pharmacy for their assistance in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Sandra Wilkinson, Thomas Corcoran and Ayn M. Ducao, who prosecuted the case.
Grand Jury Indictments Charge Defendants with Child Pornography in Unrelated CasesRead the Press Release
Peoria, Ill. – A federal grand jury yesterday afternoon returned three separate, unrelated indictments that charge defendants in the Central District of Illinois with child pornography offenses:
Johnathan W. Pierce, 29, of the 1000 block of Armstrong Ave., Peoria, Ill., charged with eight counts of receiving child pornography and one count of possession of child pornography. Pierce was previously arrested on Aug. 8, 2013, and charged by complaint. U.S. Magistrate Judge John A. Gorman ordered that Pierce remain detained in the custody of the U.S. Marshals Service.
The investigation was conducted by the U.S. Secret Service; Washington Police Department; the Tazewell County Sheriff’s Office; and, the Peoria Police Department. Assistant U.S. Attorney Kirk D. Schoenbein is prosecuting the case.Michael E. Ontiveros, 50, of the 2000 block of North Evandale, Decatur, Ill., charged with one count of possession of child pornography. Ontiveros was arrested and charged by complaint on Aug. 7, 2013. U.S. Magistrate judge David G. Bernthal ordered that Ontiveros remain detained in the custody of the U.S. Marshals Service.
The investigation was conducted by U.S. Immigration and Customs Enforcement Homeland Security Investigations; the Decatur Police Department; and, the Illinois Secretary of State. Assistant U.S. Attorney Elly Peirson is prosecuting the case.Jorge Muhedano-Hernandez, 29, of Elmond Drove, Bloomington, Ill., charged with one count each of production of child pornography, illegal re-entry after removal from the United States, allegedly in Tucson, Ariz., about Nov. 4, 2012; and possession of fraudulent identification documents. The indictment also charges two other defendants, Jorge Muhedano-Martinez, 54, and Maria Ignacia Antonio-Cruz, both also of Elmond Drive, Bloomington, Ill., with one count each of possession of fraudulent identification documents.
The investigation was conducted by U.S. Immigration and Customs Enforcement Homeland Security Investigations; the Bloomington Police Department; and, the Illinois Department of Children and Family Services. Assistant U.S. Attorney Kirk D. Schoenbein is prosecuting the case.If convicted, the statutory penalty for receipt of child pornography is five to 10 years in prison; for possession of child pornography, the penalty is up to 10 years in prison. If convicted for the offense production of child pornography, the penalty is not less than 15 years to 30 years in prison. For possession of fraudulent identification documents and for illegal reentry after deportation, the penalty is up to ten years in prison.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
The cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Goodwin Charges Three More in Connection with Alpha False Billing SchemeRead the Press Release
Seven defendants charged to date in ongoing fraud investigation at Massey legacy mines
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin today announced additional charges in connection with a major false billing scheme orchestrated by former employees of Alpha Natural Resources (“Alpha”) and certain companies that provided supplies, equipment, and services to Alpha. Three individuals were charged today: Ricky R. Smith, of 49, Glen Daniels, James Rodger Long II, 34, of Beckley, and Harold Wayne Brown, II, 41, of Madison, W.Va.
Smith and Long, both former local “sourcing agents” for Massey Energy (“Massey”) legacy mines, have been charged by information with wire fraud and aiding and abetting. Brown, a former Alpha underground maintenance chief, was charged with making a false statement to federal authorities in connection with the false billing scheme. All three have agreed to plead guilty and are cooperating with the ongoing investigation.
An ongoing investigation revealed that several mine sourcing agents, generally responsible for ordering goods and services for mining operations from Alpha suppliers, participated in an illegal scheme to obtain goods for their own personal benefit. The investigation further revealed that the sourcing agents, working in conjunction with the suppliers, hid numerous illegal transactions by creating false invoices.
According to court documents, on October 6, 2011, sourcing agent Ricky Smith submitted a false invoice for $16,500 to purchase a “duster” from a leading Alpha parts supplier, M&S Hydraulics. Court documents also revealed that in a similar scheme, James Long, working with co-conspirators, submitted a false invoice for equipment totaling $8,820 to M&S Hydraulics. The false invoices were intended to look like legitimate purchases, but were actually used to provide cash, gifts and other things of value to the sourcing agents and other Alpha employees.
In March, charges were filed against the owner of M&S Hydraulics, Donald Bryan Steele. Steele was charged with wire fraud and aiding and abetting in connection with the false billing scheme. Charges were also previously filed in March against co-conspirators Edward Ellis Mullins, 41, of Peytona, W.Va., Joey R. Phalin, 36, of Crab Orchard, W.Va., and Nicholas R. Coleman, 29, of Lester, W.Va. Mullins, Phalin and Coleman are all former sourcing agents for Massey Energy (“Massey”) legacy mines. Each defendant was charged by information with wire fraud and aiding and abetting. All four defendants have agreed to plead guilty and are cooperating with the ongoing investigation.
Mullins was employed as the sourcing agent for the Shonk Powellton #1 mine, operated by the Elk Run Coal Company, an Alpha subsidiary. Around November 2011, Mullins approached a supplier, who generally provided tires, wheels and other vehicle-related materials to Massey and now Alpha, about supplying him and other Alpha employees tires and wheels for their personal vehicles. In exchange, Mullins agreed to allow the tire seller to submit false invoices for payment to Alpha reflecting that tires used in the mining operations had been delivered. For its participation, the tire seller was told to “pad” the false invoice. The tire seller immediately provided this information to Alpha corporate security, who, in turn, contacted the FBI and West Virginia State Police. A criminal investigation revealed that not only Mullins, but other sourcing agents, including Phalin and Coleman, who were employed by another Alpha subsidiary, Marfork Coal Company, were also engaged in the false billing scheme.
Through the sourcing agents’ cooperation and other information, law enforcement agents have identified other conspirators linked to the widespread false-billing scheme.
Mullins, Phalin, Coleman and Steele each face up to 20 years in prison and a $250,000 fine.
Smith and Long each face each face up to 20 years in prison and a $250,000 fine. Brown faces up to five years in prison and a $250,000 fine.
The investigation was conducted by the FBI and the West Virginia State Police with cooperation from Alpha Natural Resource’s internal security team. Assistant United States Attorney Thomas Ryan is in charge of the prosecutions.
In June 2011, Alpha Natural Resources finalized the purchase of Massey, including the mining divisions located along WV Route 3 in Boone and Raleigh counties.
Note: A sourcing agent refers to the individual located at each mine site who is responsible for ordering goods and services from vendors to ensure the continuation of mining operations.
Getaway Driver Sentenced to 5 Years in Prison for Aiding and Abetting Armed Bank RobberyRead the Press Release
OAKLAND – Regina Lynn Dean was sentenced yesterday to 5 years in prison for aiding and abetting armed bank robbery, United States Attorney Melinda Haag announced.
Dean, who had no plea agreement with the government, pleaded guilty on May 15, 2013. During the plea hearing, Dean admitted that she was the getaway driver for her co-defendant Gary Casdell Fite, II, who robbed at gunpoint the Mechanics Bank branch on Pinole Valley Boulevard in Pinole, Calif., on March 1, 2013, taking more than $3,000.
Dean, 37, of Antioch, was indicted by a federal grand jury on March 28, 2013, and was ordered to surrender into federal custody immediately after her sentencing. The sentence was handed down by U.S. District Court Judge Phyllis J. Hamilton. In addition to her prison term, Dean was also sentenced to a 3-year period of supervised release.
Co-defendant Fite, 23, of Oakland, pleaded guilty pursuant to a plea agreement on June 19, 2013, and is scheduled to be sentenced on September 4, 2013.
Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance Legal Assistant Janice Pagsanjan. The prosecution is the result of an investigation by the FBI.
Georgia Man, Kaleb Deakle, Sentenced for Defrauding Car DealershipRead the Press Release
KALEB DEAKLE, age 24, a resident of Atlanta, Georgia, was sentenced in federal court today before U.S. District Court Judge Jane Triche Milazzo, to 24 months incarceration, announced U. S. Attorney Dana Boente. In addition to the term of imprisonment, Judge Milazzo ordered DEAKLE to pay $132,093.83 in restitution. DEAKLE pled guilty to wire fraud on April 16, 2013.
According to court documents, DEAKLE previously resided in New Orleans and gained access to the bank account of the management company where he had leased a condominium. DEAKLE used his computer to negotiate the online sale of a 2012 Land Rover Sport. After a series of emails with the salesman, DEAKLE arrived at Land Rover of New Orleans with a check purportedly from the management company. The check was counterfeit and written out for the total purchase price. DEAKLE led the dealership to believe that he was employed by Apple, Inc., that the check was legitimate, and took possession of the vehicle.
The case was investigated by the Special Agents of the Federal Bureau of Investigation and the prosecution is being handled by Assistant United States Attorney Jon Maestri.
Gang Members, Tyronne Stevenson and Mark Glenn, from Hollygrove Area Plead GuiltyRead the Press Release
TYRONNE STEVENSON and MARK GLENN, both 25 years old and both from New Orleans, pled guilty yesterday in federal court before U.S. District Judge Stanwood R. Duval, Jr., to various federal violations resulting from their association and participation in a violent drug gang operating in the Hollygrove area of the city. The boundaries of the area include South Carrollton Avenue, Earhart Boulevard, Interstate 10, and the Jefferson Parish line.
TYRONNE STEVENSON pled guilty to conspiracy to commit RICO; conspiracy to distribute 28 grams or more of crack cocaine; conspiracy to use firearms in furtherance of drug trafficking crimes and crimes of violence; and participating in two separate non-fatal shootings in aid of racketeering, to wit: the assault with a dangerous weapon. STEVENSON pled guilty pursuant to an 11(c)(1)( C) plea agreement where he will be sentenced to term of imprisonment of 30 years. The Court may accept or reject the plea agreement.
MARK GLENN pled guilty to conspiracy to commit RICO and discharging a firearm during a crime of violence. GLENN pled guilty pursuant to an 11(c)(1)( C) plea agreement where he will be sentenced to term of imprisonment of 25 years. The Court may accept or reject the plea agreement.
In November of 2012, a Federal Grand Jury returned a 34-count second superseding indictment charging Walter Conley, Tyronne Stevenson, Theron Goldston, Bernell Williams, Norman Ratcliff, and Mark Glenn with participating in a RICO conspiracy, drug conspiracy, firearms conspiracy, and several substantive acts of violence.
Theron Golston pled guilty to a life sentence for his participation in the murder of Ms. Eula May Ivey.
Carey Jones pled guilty to a life sentence for his participation in the RICO conspiracy, two separate non-fatal shootings, and for his participation in the murder of Ms. Eula May Ivey. .
Bernell Williams pled guilty to participating in the RICO conspiracy, drug conspiracy, gun conspiracy, and to his involvement in two separate non-fatal shootings. He will face a sentence of 25 to 30 years in prison.
Ryan Carroll pled guilty to participating in the RICO conspiracy and to discharging a firearm during a drug trafficking crime and a crime of violence. He faces a sentence of 10 years to life. He was charged in the original superseding indictment.
China Stewart pled guilty to possession with the intent to distribute crack cocaine and will face a sentence of not more than five years.
Williams, Carroll and Stewart are scheduled for sentencing on October 16, 2013.
The sole remaining defendant, WALTER CONLEY, is scheduled to stand trial on September 23, 2013. He is presumed innocent until proven guilty at trial.
The case was investigated by the Multi-Agency Gang Unit, a New Orleans Police Department led division which includes federal agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration, the Federal Bureau of Investigation, and the U.S. Marshal’s Service, as well as participants from the Orleans Parish Sheriff’s Office, the Louisiana State Police, State Probation and Parole, and the New Orleans District Attorney’s Office.
The case is being prosecuted by Assistant United States Maurice E. Landrieu, Jr.
(Download Factual Basis - Tyronne Stevenson )
(Download Factual Basis - Mark Glenn )
French Citizen Sentenced to 108 Months for Transporting Child PornographyRead the Press Release
SAN FRANCISCO – Nicolas Perret was sentenced yesterday to nine years in prison for transporting child pornography, announced United States Attorney Melinda Haag.
Perret, 43, of Saint Laurent Du-Pape, France, was indicted by a federal grand jury on May 17, 2012. He was charged with four counts of sexual exploitation of children and transportation of child pornography.
Perret pleaded guilty on May 7, 2013, to a violation of 18 U.S.C. § 2252(a)(1), transportation of child pornography. According to the plea agreement, Perret admitted to possessing recordings of live video chats he had conducted with three minors whom he had convinced to engage in sexually explicit conduct after developing lengthy online relationships with the victims posing as a 15 year old boy.
The U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI) attaché in Ottawa, Canada, was alerted to Perret’s activities by Canadian authorities, who had been investigating Perret in connection with a trip Perret took to Ontario, Canada, to meet an underage girl with whom he had developed an online relationship posing as a teenage boy.
According to a court document filed by the government related to this sentencing, Perret lured young girls, barely in their teens, into performing sex acts on a video camera. Over 100 videos, featuring suspected underage girls on webcams in sexually exploitative situations, were recovered on the Perret’s laptop. The government’s sentencing memorandum further indicates that Perret established contact and engaged in communication with his victims through popular social media and video chat websites. Perret, according to the government, also invaded his victims’ bedrooms with texts and phone calls, imploring them to undress and perform sexual acts, all while hiding behind a fictitious teenager identity he knew they had grown to trust.
"As this case vividly illustrates, the advent of the Internet means youth are now vulnerable to exploitation by sexual predators not just around the corner, but around the globe," said Clark Settles, Special Agent in Charge for HSI San Francisco. "This new reality means that as parents and as law enforcement, we must be mindful of the risks facing children when they go online and use every tool at our disposal to keep them safe."
The sentence was handed down by The Honorable William H. Alsup, U.S. District Court Judge, following a guilty plea on one count in violation of 18 U.S.C. § 2252(a)(1). Judge Alsup also sentenced the defendant to a 5-year period of supervised release, and Perret is required to register as a sex offender. In addition, Perret was ordered to pay over $28,000 to the family of one of his victims to compensate them for the costs of psychological treatment incurred as a result of the offense. Perret has been in custody since his arrest in March of 2012.
Carolyn Silane is the Special Assistant U.S. Attorney who is prosecuting the case with the assistance of Bridget Kilkenny. The prosecution is the result of a year-long investigation by ICE HSI.
Fox Chapel Woman Illicitly Imported Anti-Cancer Drugs into U.S. for Sale at Stanton-Negley PharmacyRead the Press Release
PITTSBURGH, Pa. - A Fox Chapel resident pleaded guilty in federal court to charges of unlawful importation of prescription drugs, United States Attorney David J. Hickton announced today.
Robin W. Simon, 45, pleaded guilty to two counts before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that in July of 2007 Simon unlawfully imported the anti-cancer prescription drug known as "Xeloda" from Lisbon, Portugal. Simon had purchased the Xeloda from United Drug Wholesalers, which is based in Ireland, and directed United Drug to send those drugs to her in Portugal. In September of 2008, Simon unlawfully imported Xeloda from Heathrow Healthcare, Limited, which is based in Hounslow, Great Britain. The Xeloda tablets which Simon unlawfully imported from Portugal and Great Britain had been manufactured by Roche Laboratories in New Jersey. Simon then caused those medications to be dispensed to persons who presented prescriptions for Xeloda to the Stanton-Negley Pharmacy, which is located on North Negley Avenue in Pittsburgh.
Judge Schwab scheduled sentencing for Dec. 20, 2013, at 9:30 a.m. The law provides for a total sentence of 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The United States FDA-Office of Criminal Investigations, the United States Department of Health and Human Services Office of Inspector General, the Department of Homeland Security, the Federal Bureau of Investigation and the United States Postal Inspection Service conducted the investigation that led to the prosecution of Simon.
Four Southeast Texans Guilty of Federal Racketeering CrimesRead the Press Release
Department of Justice
Office of Public Affairs“Whites Only” Enterprise Dealt Methamphetamine and Murder
BEAUMONT, Texas – A 49-year-old Hull, Texas, woman has pleaded guilty to racketeering charges related to her association with a “white’s only” criminal enterprise that engaged in methamphetamine distribution and murder in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Vicki Stark-Fitts pleaded guilty to participating in a pattern of racketeering activity that included conspiracy to distribute methamphetamine and murder today before U.S. Magistrate Judge Keith Giblin.
Kenny Don Stanley, 25, of Vidor, Texas, Tanner Lynn Bourque, a/k/a “Two Shoes,” a/k/a “Hitman,” 33, of Port Arthur, Texas, and Kristopher Leigh Guidry, a/k/a “Hollywood,” 28, each pleaded guilty to murder in aid of the racketeering activity earlier this summer.
The four were charged in a seven-count superseding indictment that was returned by a federal grand jury on Aug. 7, 2013. The indictment is the latest in a series of Eastern District prosecutions targeting members and associates of the SWS and the Aryan Brotherhood of Texas (ABT).
According to the indictment, the SWS is a race-based organization operating inside and outside of jails and prisons in Texas and elsewhere. SWS was founded during the 1990s by inmates within the Texas Department of Criminal Justice. SWS is also known as “Solid Wood Soldiers” and “Separate White State.” Although the founders established SWS for protection of white inmates and advancement of white supremacy and white separatism, SWS expanded its objectives to include illegal activities for profit, including trafficking methamphetamine and firearms. SWS protects its power, territory, and profits through intimidation and violence, including assaults, robbery, and murder. From September 2010 to January 2011, Bourque, Guidry and other SWS members manufactured “shake and bake” methamphetamine for distribution in the Orange County area of Texas. In February 2011, Bourque, Guidry and other SWS members became closely associated with Stark-Fitts, who supplied them with crystal methamphetamine and firearms. Crystal methamphetamine is a purer form of methamphetamine that is imported from Mexico.
According to information presented in court, on Mar. 11, 2011, while SWS member James Lee Sedtal, a/k/a “Lil Bit,” was delivering methamphetamine in Orange County, Sedtal used one of Stark-Fitts’s guns to shoot and wound an ABT associate. ABT is a criminal gang operating in the Orange County area of Texas and elsewhere that wielded supremacy over SWS in Orange County. During the early morning hours of Mar. 14, 2011, Stanley shot and killed Sedtal at Stark-Fitts’s residence in Liberty County, Texas. Bourque had ordered Stanley to kill Sedtal to prevent ABT from retaliating against SWS for Sedtal’s shooting of the ABT associate. Later that morning, Bourque, Stark-Fitts, Guidry, and Stanley drove to a deserted logging trail in Hardin County where they disposed of Sedtal’s body. Sedtal’s body was recovered on March 23, 2011, after a man phoned 911 to report his discovery of human remains inside a burned car.
Stanley, Bourque, Guidry each pleaded guilty to violating 18 U.S.C. 1959(a)(1), murder in aid of racketeering. In connection with their pleas, Bourque, Guidry, and Stanley admitted that they sought to maintain and increase their position within SWS by murdering Sedtal. Bourque, Guidry, and Stanley face a punishment of life imprisonment. Stark-Fitts pleaded guilty to a violation of 18 U.S.C. 1962(c), RICO, and faces up to life imprisonment. The indictment charged all twelve defendants with conspiracy to distribute methamphetamine in violation of 21 U.S.C. § 846. If convicted of conspiracy to distribute methamphetamine as charged, the remaining defendants face a punishment range of 10 years to life imprisonment.
The case is being investigated by the ATF, FBI, U.S. Marshals Service, U.S. Secret Service, U.S. Bureau of Prisons, DEA, Texas Rangers, Department of Public Safety CID, Texas Department of Criminal Justice OIG, Orange County Sheriff’s Office, Hardin County Sheriff’s Office, Jasper County Sheriff’s Office, Tyler County Sheriff’s Office, Jefferson County Sheriff’s Office, and Beaumont Police Department, and is being prosecuted by Assistant U.S. Attorney John B. Ross.
This case is being prosecuted as part of the Project Safe Neighborhoods Time Machine Initiative. Time Machine is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.Former Viriginia Resident Convicted of Sending Explosion-Graded Industrial Parts to IranRead the Press Release
ALEXANDRIA, Va. – Mehdi Khorramshahgol, 50, formerly of Centreville, Va., was convicted on Tuesday by a federal judge after a bench trial for violating U.S. economic sanctions on Iran by sending explosion-graded industrial parts to a petrochemical company in Iran.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and Rick Shimon, Special Agent in Charge of the Department of Commerce’s Office of Export Enforcement’s Washington Field Office, made the announcement after the verdict by United States District Judge Gerald Bruce Lee.
Khorramshahgol faces a potential maximum penalty of 90 years of imprisonment when he is sentenced on November 1, 2013, though the anticipated sentencing guideline range is much lower.
Khorramshahgol was indicted on April 25, 2013, by a federal grand jury on four counts of violating and conspiring to violate the United States economic sanction on Iran, one count of conspiring to defraud the United States, and one count of aiding and abetting a material false statement. According to court records and evidence at trial, the defendant conspired with others in Iran to purchase industrial goods from United States businesses for the Iranian petrochemical industry. The defendant falsely represented that the end users for his purchases were in Dubai. After the defendant purchased the goods and shipped them to Dubai, other co-conspirators repackaged the goods for onward shipment to Tehran. The conspiracy used a series of false invoices, false end users, and front companies to hide its illicit activity.
This case was investigated by HSI and the Department of Commerce’s Office of Export Enforcement. Assistant United States Attorneys Carter Burwell and Andrew Peterson are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Iowa Air Force Captain Charged with Violating Conflict of Interest LawsRead the Press Release
Adam, J.J. Pudenz, 33, from Carroll, Iowa, has been charged by a criminal Complaint, filed in the United States District Court in the Northern District of Iowa, with violating federal conflict of interest laws. The Complaint was unsealed yesterday following Pudenz’s arrest without incident in Carroll, Iowa.
The Complaint alleges that during about 2011 Pudenz knowingly and wilfully engaged in unlawful representational activities. The affidavit supporting the complaint alleges that Pudenz, while a Captain in the United States Air Force, served as a contracting officer for the military in Kabul, Afghanistan. Further, after Pudenz separated from the military in about February 2011, he was employed by a company with whom he had previously done business as a military contracting officer. The affidavit alleges Pudenz was paid more than $250,000 by the company for services that included representation of the company with the military on the same contracts Pudenz had administered while in the military.
Pudenz appeared in federal court in Sioux City on the afternoon of August 21, 2013, and was released on conditions of bond, including the condition that he surrender his passport and restrict his travel. Pudenz’s next court appearance, for a preliminary hearing, is set for September 11, 2013.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and Trial Attorney Wade Weems from the Fraud Section of the Criminal Division at the Department of Justice in Washington, D.C. The case has been investigated by the FBI, the Special Inspector General for Afghanistan Reconstruction, and by the Defense Criminal Investigative Agency.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-mj-00230 JSS.
Former Erie Man Sentenced to 12 Years in Prison for Possessing, Distributing Child PornographyRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania has been sentenced in federal court to 145 months in jail, 15 years supervised release and ordered to make $5,000 in restitution on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Michael Vay Daratany, 36.
According to information presented to the court, Daratany distributed and possessed computer images and movies depicting minors engaging in sexually explicit conduct. Many of the images and movies found on Daratany's computer equipment depicted the sexual abuse of infants and toddlers.
Prior to imposing sentence, Judge Cercone stated that this was a very serious offense deserving of a significant sentence.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Pennsylvania State Police and the Charlottesville, Virginia Police Department for the investigation leading to the successful prosecution of Daratany.
Launched in February 2006, Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys' Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Customs Officer Sentenced to 151 Months in Prison for Importing over 1,200 Pounds of Marijuana into the United States from MexicoRead the Press Release
TUCSON, Ariz. – On Aug. 19, 2013, Luis Carlos Vasquez, 33, of Douglas, Ariz. was sentenced by U.S. District Judge David C. Bury to 151 months imprisonment. Vasquez was found guilty by a federal jury on Feb. 14, 2013, of one count of conspiracy to possess with intent to distribute marijuana, one count of possession with intent to distribute marijuana, one count of conspiracy to import marijuana and one count of importation of marijuana, aid and abet
United States Attorney John Leonardo stated, “When law enforcement officers like Luis Vasquez conspire with others to violate the very laws they are sworn to enforce, it undermines public confidence in the entire criminal justice system. He is deserving of the harsh punishment he received as he has not only disgraced himself and betrayed the public trust placed in him, but he has insulted the vast majority of his fellow officers who strive every day to perform a difficult job with integrity, honesty and dedication.”
The evidence at trial showed that Vasquez used his position as an inspector at the Douglas Port of Entry to allow over 1,200 pounds of marijuana into the United States from Mexico. On at least two occasions, Vasquez, along with other members of the conspiracy, imported a large quantity of marijuana from Mexico into the United States through the Douglas Port of Entry. Vasquez’ role in the conspiracy was to use his position as a Customs Officer to allow pick-up trucks loaded with marijuana to cross the international border without inspection.
The investigation in this case was conducted by the Federal Bureau of Investigation, the Department of Homeland Security, Customs and Border Protection and Office of the Inspector General, and the Douglas Arizona Police Department. The prosecution was handled by James T. Lacey, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-11-02486-TUC-DCB
RELEASE NUMBER: 2013-068_VasquezFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Former Citibank Employee Faces Federal ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, woman has been indicted by a federal grand jury for Bank Fraud, Bank Embezzlement, Access Device Fraud, and Aggravated Identity Theft.
Terri Jo Huber, age 43, was indicted by a federal grand jury on August 13, 2013. She appeared before U.S. Magistrate Judge John E. Simko on August 21, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 30 years’ imprisonment, a $1,000,000 fine, or both; up to 5 years on supervised release, an additional 3 years of supervised release upon revocation; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
At the time of the alleged crimes, Huber was employed as an Escalation Specialist at the Citibank facility in Sioux Falls. In that capacity, Huber had computer access to the account information of customers who had credit cards with Citibank.The charges are merely accusations and Huber is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Sioux Falls Police Department and the U.S. Secret Service. Assistant U.S. Attorney Dennis R. Holmes is prosecuting the case.
Huber was released on bond pending trial. A trial date has not been set.Florida Woman Sentenced for Role in <br /> Reverse Mortgage Fraud SchemeRead the Press Release
A Miami title agent and former mortgage broker was sentenced today for her role in a reverse mortgage loan fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, and Special Agent in Charge Lester Fernandez of the U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG) made the announcement after sentencing by Senior Judge Richard W. Goldberg, sitting by designation in the Southern District of Florida.
Yesenia Pouparina, aka “Yesenia Campos,” 42, was sentenced today to 46 months in prison, followed by three years of supervised release, and was ordered to pay $207,810 in restitution. Pouparina was convicted in February 2013 of four counts of wire fraud and one count of mail fraud.
According to court documents and evidence presented at trial, Pouparina, a licensed title agent in the state of Florida, sought to obtain a reverse mortgage loan worth more than $400,000 on her own property in the name of her mother, an individual who failed to meet the requirements of the Home Equity Conversion Mortgage (HECM) program. She submitted a false loan application and doctored records in support of that application, misrepresenting her mother’s eligibility to participate in the program. Pouparina acted as the title agent for the loan and disbursed the loan proceeds directly to her own personal bank accounts. Pouparina also enriched herself by collecting fees generated by the loan, and further profited by using the loan proceeds in connection with her business as a hard-money lender in other mortgage deals.
Following Pouparina’s conviction on the fraud counts, the jury also found forfeitable three bank accounts controlled by the defendant, which were seized by the government during the course of the investigation.
This case was investigated by HUD-OIG. Trial Attorney Sandra L. Moser of the Criminal Division’s Fraud Section prosecuted the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
Today’s conviction 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. attorney’s offices and state and local partners, it is 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 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Florida Woman Sentenced for Role in Reverse Mortgage Fraud SchemeRead the Press Release
A Miami title agent and former mortgage broker was sentenced today for her role in a reverse mortgage loan fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, and Special Agent in Charge Lester Fernandez of the U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG) made the announcement after sentencing by Senior Judge Richard W. Goldberg, sitting by designation in the Southern District of Florida.
Yesenia Pouparina, aka “Yesenia Campos,” 42, was sentenced today to 46 months in prison, followed by three years of supervised release, and was ordered to pay $207,810 in restitution. Pouparina was convicted in February 2013 of four counts of wire fraud and one count of mail fraud.
According to court documents and evidence presented at trial, Pouparina, a licensed title agent in the state of Florida, sought to obtain a reverse mortgage loan worth more than $400,000 on her own property in the name of her mother, an individual who failed to meet the requirements of the Home Equity Conversion Mortgage (HECM) program. She submitted a false loan application and doctored records in support of that application, misrepresenting her mother’s eligibility to participate in the program. Pouparina acted as the title agent for the loan and disbursed the loan proceeds directly to her own personal bank accounts. Pouparina also enriched herself by collecting fees generated by the loan, and further profited by using the loan proceeds in connection with her business as a hard-money lender in other mortgage deals.
Following Pouparina’s conviction on the fraud counts, the jury also found forfeitable three bank accounts controlled by the defendant, which were seized by the government during the course of the investigation.
Following Pouparina’s conviction on the fraud counts, the jury also found forfeitable three bank accounts controlled by the defendant, which were seized by the government during the course of the investigation.
This case was investigated by HUD-OIG. Trial Attorney Sandra L. Moser of the Criminal Division’s Fraud Section prosecuted the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
Today’s conviction 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. attorney’s offices and state and local partners, it is 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 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the 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.
Florida Man Pleads Guilty to Charges in Connection with Stolen Identity Tax Fraud SchemeRead the Press Release
St. Louis, MO –DWAYNE DENARD JOHNSON, Wesley Chapel, Florida, pled guilty to two counts of aggravated identity theft for his role in a stolen identity tax fraud scheme lead by his wife Tania Henderson from their home in suburban Tampa. Johnson is the fifth person involved in the scheme charged and convicted in the Eastern District of Missouri.
According to the plea agreement, Johnson admitted to helping his wife and others use the identities and social security numbers of hundreds of people to file phony tax returns and collect the refunds generated by those returns. In all, the scheme has been found to have involved more than 400 stolen identities and generated more than $1.8 million dollars in refunds, about half of which was intercepted by the IRS before coming under the control of the fraudsters.
Johnson now faces a minimum of two years imprisonment and a maximum of four years imprisonment. Additionally, restitution is mandatory. Sentencing has been set for November 26, 2013.
His wife, Tania Henderson, of Wesley Chapel, Florida, was sentenced in July to 144 months in prison for her role in leading a stolen identity tax fraud scheme during 2012.
This case was investigated by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.
Final Defendant in National Prearranged Services, Inc. Case Convicted on 18 Counts of FraudRead the Press Release
St. Louis, MO – DAVID R. WULF was convicted today after a thirteen-day trial before United States District Judge Jean C. Hamilton for his role in one of the largest frauds ever prosecuted in the Eastern District of Missouri. Wulf was convicted on 18 counts, including bank fraud, wire fraud, wire fraud affecting a financial institution and conspiracy to commit those crimes.
Wulf was appointed in the 1980's to serve as the independent investment advisor to the preneed funeral trusts established pursuant to Missouri statutes by National Prearranged Services, Inc. (“NPS”). As the trusts’ advisor, Wulf was responsible for protecting, investing and managing the trusts’ assets, which included more than $150 million paid by customers who were told their funds would be kept safe until the time of need. The government’s evidence at trial, however, established that Wulf continually authorized the use of trust funds to pay unrelated debts of companies affiliated with NPS, to enrich his co-defendants and ultimately to perpetuate a massive Ponzi scheme that spanned more than a dozen states and affected thousands of individual customers.
According to court documents and testimony presented at trial, beginning as early as 1992 and continuing until 2008, NPS sold prearranged funeral contracts in several states, including Missouri, Illinois and Ohio. During that time, insurance companies affiliated with NPS issued life insurance policies related to those prearranged funeral contracts. As part of the contracts, the total price for funeral services and merchandise for an individual was agreed upon, and that price would remain constant regardless of when the funeral services and merchandise would be needed. Customers entering into prearranged funeral contracts would usually pay a single sum of money up-front to NPS either directly or through a funeral home that was also a party to the contract. NPS represented to individual customers, funeral homes and state regulators that funds paid by customers under the prearranged funeral contracts would be kept in a secure trust or insurance policy as required under state law.
Court documents disclose, however, that NPS made use of funds paid by customers in ways that were inconsistent both with its prior and continuing representations and with the applicable state laws and regulations. Instead, NPS operated as a fraudulent Ponzi-like scheme, where customer funds were neither kept safe in bank trusts or insurance policies, but instead were utilized for unauthorized purposes and the personal enrichment of NPS’ officers and others. In turn, new business became the source of funding for funerals that prior customers had previously paid for in advance. Victims of the scheme include individual customers, funeral homes and state insurance guarantee associations across the country.
Each count of bank fraud, conspiracy and wire fraud affecting a financial institution carries a maximum penalty of 30 years imprisonment. The wire fraud counts each carry a maximum penalty of 20 years. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Wulf’s sentencing has been set for November 7, 2013.
Wulf's co-defendants James Douglas Cassity, Brent Douglas Cassity, Howard Wittner, Randall Sutton and Sharon Nekol Province each pled guilty to charges against them earlier this year and likewise await sentencing in November.
This case was investigated by the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation and the Postal Inspection Service. Assistant United States Attorneys Steven Muchnick, Charles Birmingham and Richard Finneran prosecuted the case for the U.S. Attorney’s Office.
Federal Jury Finds Odessa Man Guilty in Cocaine Trafficking ConspiracyRead the Press Release
TAMPA, FLORIDA - Acting United States Attorney A. Lee Bentley, III announces that yesterday a federal jury found Antonius Russel Ford (28, Odessa) guilty of conspiracy to possess with intent to distribute cocaine. Ford faces a maximum penalty of 30 years in federal prison. His sentencing hearing will be scheduled at a later date. Ford was indicted on May 13, 2013.
According to testimony and evidence presented at trial, Ford bought hundreds of grams of cocaine and crack cocaine from a supplier in Town 'n' Country, a community in Tampa. Ford then resold the drugs in Spring Hill and elsewhere. During the investigation, numerous telephone conversations between Ford and the supplier were intercepted by law enforcement. On April 12, 2013, agents executed federal search warrants at two businesses in Town 'n' Country and recovered approximately 255 grams of cocaine, as well as several thousand dollars in cash.
This case was investigated by the Federal Bureau of Investigation, the Hillsborough County Sheriff's Office, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Patrick Scruggs.
Federal Jury Convicts Del Rio Man in Child Porn CaseRead the Press Release
Law Enforcement testimony revealed that defendant possessed over 1,000 videos and 100 images depicting child pornography
In Del Rio, 39-year-old Ruben A. Vazquez, a teacher at Calderon Elementary in the San Felipe Independent School District, faces a minimum of five years in federal prison after a jury convicted him this afternoon of child pornography charges, announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Janice Ayala.
The jury convicted Vazquez of one count of receipt of child pornography, one count of distribution of child pornography and one count of access with the intent to view child pornography. Evidence presented during trial revealed that Vazquez was using peer to peer file sharing programs to access, receive and distribute videos of child pornography. Law enforcement officers testified that Vazquez admitted to them that he had over 1,000 images and over 100 videos of child pornography.
On June 21, 2012, HSI special agents executed a search warrant at the defendant’s residence and seized several computers and related equipment. According to court records, a forensics evaluation of the seized items revealed the presence of child pornography videos that depict minors engaging in sexually explicit conduct along with evidence of child pornography files that had previously resided on the computer.
Vazquez faces between five and 20 years in federal prison on each receipt and distribution count; and, up to ten years in federal prison on the access count. Vazquez remains in federal custody pending sentencing scheduled for January 16, 2014, before United States District Judge Alia Moses.
This case was investigated by HSI agents together with the investigators from the Beaumont Police Department. Assistant United States Attorneys Meghan McCalla and Ralph Paradiso are prosecuting this case on behalf of the Government.
Federal Inmate with Cell Phone Will Spend an Extra Month in PrisonRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania pleaded guilty and was sentenced in federal court to 1 month incarceration on his conviction for possession of contraband in prison, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Franklin Rodriguez, 43. The sentence was imposed to run consecutively to the sentence Rodriguez is currently serving.
According to information presented to the court on December 24 ,2012, Rodriguez was in possession of contraband, namely a cell phone.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Officers of the McKean Federal Correctional Institution for the investigation leading to the successful prosecution of Rodriguez.
Federal Inmate Sentenced to 18 More Months in Prison for Possessing WeaponRead the Press Release
ERIE, Pa. - An inmate at the McKean Federal Correctional Institution in Bradford, Pennsylvania pleaded guilty and was sentenced in federal court to 18 months incarceration on his conviction for possession of contraband in prison, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Antonio Lattin, 28. The sentence was imposed to run consecutively to the sentence Lattin is currently serving.
According to information presented to the court on December 1, 2012, Lattin was in possession of a weapon.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended Officers of the McKean Federal Correctional Institution for the investigation leading to the successful prosecution of Lattin.