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21 August 2013
British Man Convicted in 2009 Hammer Attack on College CampusRead the Press Release
-Defendant Fled United States for Four Years After Assault -WASHINGTON Mohammed Niazi, 45, of the United Kingdom, was found guilty by a jury yesterday of charges arising from a hammer attack on a George Washington University student in a campus bathroom, announced U.S. Attorney Ronald C. Machen Jr.
Niazi was found guilty by a jury in the Superior Court of the District of Columbia of assault with a dangerous weapon, assault with significant bodily injury, and carrying a dangerous weapon. The Honorable Stuart G. Nash scheduled sentencing for October 22, 2013.
According to the evidence presented at trial, on October 9, 2009, at approximately 3:00 p.m., Niazi entered Duques Hall, located at 2201 G Street in Northwest Washington. He entered a men’s bathroom on the second floor and began striking the victim in the back of the head with a metal hammer. The victim attempted to defend himself against Niazi, who continued the attack inside a foyer located between the hallway and the main bathroom. As the victim stumbled out of the bathroom bleeding, students rushed to his aid. Niazi fled down the stairs and out of the building.
Detectives with the George Washington University Police Department and the D.C. Metropolitan Police Department obtained images of the suspect from security video taken in Duques Hall and issued a campus-wide e-mail alert. A response to the alert led police to a coffee shop nearby where Niazi had been seen shortly before the attack. Using security video and credit card transaction records from the coffee shop, police were able to obtain Niazi=s name and his Virginia driver=s license photo.
The day after the attack, Niazi purchased an airline ticket to London and fled the country the following day. On April 4, 2013, Niazi was apprehended when he tried to travel through Panama and was returned to the United States to face charges.
U.S. Attorney Machen expressed his appreciation to the Metropolitan Police Department, the George Washington University Police Department, and the U.S. Coast Guard Investigative Service. U.S. Attorney Machen also commended the work of Paralegals Allison Gregory Daniels, Victim Advocate Jennifer Clark, and Litigation Technology Specialist Leif Hickling. Finally, he commended former Assistant U.S. Attorney Emily Scruggs, who investigated the case, and Assistant U.S. Attorney Scott Sroka, who indicted and tried the case.
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###Bowie County Man Guilty of Drug Trafficking & Firearms ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTEXARKANA, Texas – A 44-year-old Texarkana, Texas man has pleaded guilty to federal drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Keith Glenn Harris pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm during a drug trafficking crime today before U.S. Magistrate Judge Caroline M. Craven.
According to information presented in court, on July 21, 2012, Harris possessed approximately 1,610 grams of actual methamphetamine and a handgun in his vehicle. He was being paid to travel to Dallas and transport the methamphetamine to Texarkana for distribution. A federal grand jury returned an indictment on Oct. 3, 2012, charging Harris with federal violations.
Harris faces a minimum of 10 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the Federal Bureau of Investigation and the Texas Department of Public Safety and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.
Amherst Man Arrested, Charged with Drug ChargesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Charles Jones, 40, of Amherst, N.Y., was arrested and charged by criminal complaint with possession with intent to distribute 500 grams or more of cocaine. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life, a fine of up to $8,000,000 or both.
Assistant U.S. Attorney Eric M. Opanga, who is handling the case, stated that on August 20, 2013, law enforcement officers pulled over a vehicle in the City of Buffalo. According to the complaint, the defendant was lying down in the backseat in an attempt to avoid police detection. Officers searched the car and discovered the suspect. During subsequent searches of a nearby business and residence, officers recovered quantities of cocaine and marijuana and approximately $16,000 in cash.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder. Jones is being held pending a detention hearing on August 28, 2013 at 11:00 a.m.
The criminal complaint is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until proven guilty in a court of law.Albuquerque Man Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Curtis Caylor, 60, of Albuquerque, N.M., pleaded guilty this morning to receipt of a visual depiction of minors engaged in sexually explicit conduct under a plea agreement with the U.S. Attorney’s Office.
Caylor was arrested on Dec. 20, 2012, based on an indictment charging him with three counts of receipt of child pornography and two counts of possession of child pornography. The indictment alleged that Caylor received child pornography on three occasions in Sept. 2011 and that he possessed child pornography in Jan. 2012, in Bernalillo County.
During today’s proceedings, Caylor entered a guilty plea to Count 2 of the indictment charging him with receipt of child pornography. In his plea agreement, Caylor acknowledged that investigators with Homeland Security Investigations (HSI) and the New Mexico Internet Crimes Against Children Task Force (New Mexico ICAC Task Force) executed a search warrant at his residence on Jan. 12, 2012 and seized computers and computer-related media. The search warrant was issued based on an undercover investigation by the New Mexico State Police that began in June 2011, and targeted individuals who possessed, received and distributed child pornography. The investigation revealed that an IP Address which was subscribed to Caylor’s residence was being used to download child pornography images and videos through a peer-to-peer file-sharing program.
Caylor also acknowledged that a forensic examination of his computers and computer-related media by HSI and the New Mexico Regional Computer Forensic Lab revealed thousands of images and videos consistent with child pornography. Caylor also acknowledged that HSI sent more than 1000 of these images and 600 of those videos to the National Center for Missing and Exploited Children (NCMEC) and the NCMEC has issued a preliminary report indicating they include 154 videos of 48 children who have been identified as child pornography victims and have been rescued.
At sentencing, Caylor faces a prison sentence of not less than five years and not more than 20 years. He also will be required to register as a sex offender. Caylor remains in federal custody pending his sentencing hearing, which has yet to be scheduled. Under the terms of his plea agreement, Caylor will forfeit his computers and computer-related media.
This case was investigated by the Albuquerque office of HSI, the Online Predator Unit of the NMSP, the New Mexico Regional Computer Forensic Laboratory and other members of the New Mexico ICAC Task Force. It is being prosecuted by Assistant U.S. Attorney Charlyn E. Rees as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Alabama Man Sentenced to 121 Months in Federal Prison for Attempted Online Enticement of a MinorRead the Press Release
PANAMA CITY, FLORIDA – Thomas Monroe Lee, 40, of Gadsden, Alabama, was sentenced today to serve 121 months in federal prison for using the Internet in an attempt to persuade, induce, and entice a minor to engage in sexual activity.
Evidence presented during a three day trial in April 2013 proved that, on June 14, 2012, law enforcement officers posed as a 14-year-old boy named Skylar and responded to an advertisement entitled “Last call!!!! – m4m – 1840 (PCB/Laguna beach),” which had been posted under the “Casual Encounters” link on Craigslist. Over the next 48 hours, Lee engaged in email chats and text messages with Skylar that were sexual in nature. Subsequently, Lee drove to a location where he had arranged to meet Skylar and transport him back to his residence to engage in sexual activity. Once Lee arrived at the location, officers from various law enforcement agencies arrested him for attempted online enticement of a child.
Lee was also sentenced to a fine in the amount of $1,000, a $100 special monetary assessment, and a 7-year term of supervised release, which he will be required to serve upon completion of his sentence.
In announcing the sentence, Pamela C. Marsh, United States Attorney for the Northern District of Florida, credited the success of this prosecution to the joint efforts of the agencies participating in the North Florida Internet Crimes Against Children Task Force Program, particularly U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Marshals Service, Bay County Sheriff’s Office, Walton County Sheriff’s Office, and the Gainesville Police Department.
Ms. Marsh said, “The internet is a dangerous place, and we are determined to protect and provide justice to victims of internet crime.” She added, “Adult predators who seek to harm our children will be pursued and prosecuted by our office in cooperation with our law enforcement partners.”
“This man drove across state lines for the sole purpose of engaging in sexual relations with a child he believed to be 14 years old,” said Shane Folden, deputy special agent in charge of Homeland Security Investigations Tampa. “Our joint law enforcement efforts have successfully put this man behind bars for the next 10 years where he can no longer prey on innocent children.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was prosecuted by Assistant United States Attorney Kathryn Risinger.30 People Linked to Two Southern California Drug Transportation Networks Indicted on Federal Narcotics ChargesRead the Press Release
Rings Allegedly Smuggled Drugs into U.S. in Hidden Compartments
LOS ANGELES -- Thirty alleged members of two drug trafficking organizations that operated across Southern California have been indicted on federal narcotics charges following an investigation into the importation of cocaine and methamphetamine from Mexico into the United States.
The indictment, which was returned by a federal grand jury on August 8, was unsealed this morning after law enforcement authorities arrested seven defendants named in the indictment.The indictment is the result of a 20-month investigation involving federal wiretaps and conducted under the auspices of the Southern California Drug Task Force/High Intensity Drug Trafficking Area (HIDTA) Task Force. The investigation, which was led by the Federal Bureau of Investigation and the Drug Enforcement Administration, was called Operation “Mountain Top” and charges many of the defendants in conspiracies to distribute narcotics and to import drugs from Mexico.
During the course of Operation Mountain Top, authorities seized approximately 92 pounds of methamphetamine and 50 kilograms of cocaine.
The indictment names 30 defendants, some of whom have not been completely identified (hence, some are known as “FNU” or “LNU” – First/Last Name Unknown). The defendants are:
Nicolas Santana Zuniga, 43, of Mexico, who allegedly operated one of the drug transportation rings;
Mayra Zarate Ruelas, 37, of Mexico, who allegedly assisted Zuniga;
Raul Cervera, of Mexico, who allegedly operated the second drug transportation network;
Marco Antonio Quiroga, 51, of Mexico, who allegedly assisted Cervera by storing narcotics smuggled from Mexico;
Karine Elizabeth Barajas, 35, of Loma Linda, who allegedly smuggled narcotics into the United States for Zuniga’s network and who was arrested this morning;
Luis Mendiaz Deniz, 57, of Mira Loma, who allegedly assisted Zuniga by receiving and delivering narcotics smuggled from Mexico and who was arrested this morning;
David Lopez Hernandez, 28, of Loma Linda, who allegedly transported smuggled narcotics for Zuniga’s network and who was arrested this morning;
FNU LNU, known as “Pajaro,” a Mexico-based drug trafficker who allegedly used both Zuniga’s and Cervera’s networks to smuggle narcotics into the U.S.;
Hipolito Gutierrez Nunez, 45, of Mexico, a Mexico-based drug trafficker who allegedly used Zuniga’s network to smuggle narcotics into the U.S.;
FNU LNU, aka “Benito,” of Mexico, a Mexico-based drug trafficker who allegedly used Zuniga’s network to smuggle narcotics into the U.S.;
Elias LNU, of Mexico, a Mexico-based drug trafficker who allegedly used Cervera’s network to smuggle narcotics into the U.S.;
FNU LNU, known as “Polo,” of Mexico, a Mexico-based drug trafficker who allegedly used Cervera’s network to smuggle narcotics into the U.S.;
Joel LNU, of Mexico, a Mexico-based drug trafficker who allegedly used Cervera’s network to smuggle narcotics into the U.S.;
Idania LNU, aka “Guera,” of Mexico, a Mexico-based drug trafficker who allegedly used Zuniga’s network to smuggle narcotics into the U.S.;
Joel Olivares, of Mexico, a Mexico-based drug trafficker who allegedly used Zuniga’s network to smuggle narcotics into the U.S.;
Octavio LNU, of Mexico, who allegedly assisted Cervera by coordinating the transportation of smuggled drugs to transporters;
David LNU, of Mexico, who allegedly assisted Cervera by coordinating the transportation of smuggled drugs to transporters;
Jose Cruz Gonzalez-Cordova, 55, who allegedly transported smuggled drugs for Zuniga’s network;
Rosa Venia Felix, 44, who allegedly transported smuggled drugs for Zuniga’s network;
Marcelino Meza Zamora, 56, of Los Angeles, who allegedly transported smuggled drugs for Zuniga’s network;
Julio Cesar Velazquez, 33, who allegedly transported smuggled drugs for Zuniga’s network;
Ladis Anthony Martinez, 25, of San Bernardino, who allegedly transported smuggled drugs for Zuniga’s network and who was arrested this morning;
Carlos Alfonso Marroquin-Flores, 35, of Mexico, who allegedly transported smuggled drugs for Cervera’s network and who was arrested this morning as he crossed the international border into the United States;
Jose Ricardo Garcia Vazquez, 26, of Mexico, who allegedly transported smuggled drugs for Cervera’s organization;
Mayra Alejandra Sandoval, 23, of Long Beach, who allegedly assisted a drug transporter working for Zuniga’s network and who was arrested this morning;
Cristian Ruben Ayala, 26, of Mexico, who allegedly transported smuggled drugs for Cervera’s network;
Edgar Antonio Luna Hernandez, 32, who allegedly transported smuggled drugs for Cervera’s network;
Victor Manuel Munoz, 30, of Hawaiian Gardens, who allegedly assisted Hernandez by storing smuggled drugs in his residence and who was arrested this morning;
Scott Daniel Mercado, 21, of San Diego, who allegedly transported smuggled drugs for Cervera’s network; and
Bonny Santos Portillo, 25, who is believed to be a resident of San Diego, who allegedly transported smuggled drugs for Cervera’s network.
Those arrested this morning will be arraigned on the indictment this afternoon in United States District Court in Los Angeles (although Marroquin-Flores will make his first court appearance this afternoon in San Diego).
If they are convicted of the charges in the indictment, each defendant would face a statutory maximum penalty of life in federal prison.An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Operation Mountain Top is the result of an investigation by the FBI, the DEA, and the Torrance Police Department. A number of agencies affiliated with HIDTA assisted in today’s law enforcement operations, including U.S. Immigration and Custom
Release No. 13-106
20 August 2013
Woman Arrested for Voting Multiple Times in 2012 RunoffRead the Press Release
BROWNSVILLE, Texas – Sonia Leticia Solis, 54, has been charged with voting more than once in connection with the 2012 primary runoff election held in Cameron County on July 31, 2012, United States Attorney Kenneth Magidson announced today.
The indictment, returned under seal Aug. 13, 2013, was unsealed today following her arrest by federal authorities in Fort Worth. Solis, formerly of Brownsville, will make her initial appearance before U.S. Magistrate Judge Jeffrey L. Cureton in Fort Worth at 2:30 this afternoon and is expected to be ordered to Brownsville in the near future.
The indictment alleges Solis was a resident of Brownsville during the 2012 runoff election. At that time, she allegedly cast five votes by absentee ballot in the names of five different individuals.
If convicted, Solis faces a possible federal prison sentence of up to five years and could be ordered to pay a maximum $10,000 fine.
This case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Bill Hagen.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Winchester Man Sentenced to 30 Years for Second Degree MurderRead the Press Release
COEUR D’ALENE – U.S. Attorney Wendy J. Olson announced that Kenneth D. Broncheau, 48, of Winchester, Idaho, was sentenced today in United States District Court to 30 years in prison for second degree murder and using a firearm in a crime of violence. U.S. District Judge Edward J. Lodge also sentenced Broncheau to five years of supervised release following his prison term and fined him $2,000. He pleaded guilty to the charges on May 29, 2013.
According to the plea agreement, Broncheau admitted that on the evening of June 21, 2012, he intentionally shot and killed his mother, Carol Haskell, at their residence located on the Nez Perce Indian Reservation. Broncheau fired two shots from a Savage Arms .243 rifle; the first bullet missed Haskell, the second struck her in the torso causing a mortal injury. Broncheau then retrieved a container of gasoline from a shed located on the property and returned to the residence. According to the plea agreement, Broncheau poured gasoline on the victim’s body and set it afire. A neighbor responding to the screams and gunshots removed the rifle from Broncheau’s hands. Broncheau was taken into custody by law enforcement shortly thereafter and has remained in custody since that time.
“Mr. Broncheau well deserves the significant sentence imposed by the court,” said Olson. “His intentional, senseless acts took his mother's life. This office, along with federal and tribal law enforcement, are committed to ensuring public safety in Indian Country.”
The case was investigated by the Federal Bureau of Investigation, Nez Perce Tribal Police, Idaho State Police, and the Lewis County Sheriff’s Office.
Western District of Louisiana U.S. Attorney's Office and the IRS Presents More Than $119,000 to 26th Judicial District Attorney from Proceeds of Forfeiture CaseRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that the Western District of Louisiana U.S. Attorney’s Office and the IRS presented more than $119,000 to 26th Judicial District Attorney Schuyler Marvin as part of the successful completion a U.S. Attorney’s Office forfeiture case.The 26th Judicial District Attorney’s Office is receiving half of the $240,000 in U.S. Currency found during a traffic stop. The defendants charged in the case were prosecuted on criminal charges in state court, but the forfeiture of the U.S. Currency was pursued in federal court.
According to forfeiture case documents, Louisiana State Police troopers pulled over a vehicle Feb. 12, 2012, during a routine traffic stop. After obtaining permission to search the vehicle, they found more than $200,000 in the air intake compartment and in a suitcase in the trunk. Further investigation led to the discovery of about $40,000 hidden in the headliner of the vehicle.
After further investigation, it was discovered that Kelman Hernandez Cortorreal, who was driving the vehicle, and Cesar Maldonado and Ramon Reyes, who were passengers in the vehicle, were part of a scheme where they cashed fraudulent tax refund checks. They were traveling back to Pennsylvania after obtaining cash for refund checks in Houston, Texas.
“This case serves as an example of what can happen when law enforcement agencies work together successfully,” Finley said. “The defendants in this case were caught in the act of transporting money that was obtained through smuggling and filing fraudulent tax refunds. I want to thank all law enforcement agencies who were involved in this case.”
“IRS appreciates the outstanding working relationship that we enjoy with the local law enforcement agencies,” stated Special Agent in Charge Gabriel Grchan, IRS Criminal Investigation. “We will continue to work together to make crime a little less lucrative in our community.”
“I would like to commend the work of the State Police and all law enforcement agencies involved in this case,” Marvin stated. “Their efforts halted an illegal scheme that cost taxpayers thousands of dollars.”
The IRS, 26th Judicial District Attorney’s Office and the Louisiana State Police investigated the case. Assistant U.S. Attorney Ramsay C. McCullough brought the forfeiture action on behalf of the United States.West Palm Beach Gang Associate Sentenced as Armed Career Criminal for Firearm PossessionRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), announce that Narces Benoit, 37, a documented gang associate from West Palm Beach, was sentenced by U.S. District Judge Robert N. Scola Jr. to 180 months (15 years) in prison, to be followed by two years of supervised release for being an armed career criminal in possession of a firearm.
On February 15, 2013, the Palm Beach County Sheriff’s Office Gang Unit and SWAT Team executed a residential search warrant in West Palm Beach, Florida. At the scene, agents discovered Benoit in possession of a loaded semi-automatic pistol, cocaine, methamphetamine and a bag containing individually packaged baggies of marijuana.
A federal grand jury indicted Benoit on March 21, 2013, charging him with being a felon in possession of a firearm and ammunition. In May 2013, Benoit pleaded guilty to being a felon in possession of a firearm in violation of federal gun laws
Benoit was sentenced under the Armed Career Criminal Act, which provides a sentencing range of fifteen years to life for individuals who have been convicted of federal gun crimes and have at least three prior felony convictions for crimes of violence and/or serious drug offenses.
Mr. Ferrer commended the investigative efforts of ATF and PBSO. This case was prosecuted by Assistant U.S. Attorney John McMillan.
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.
Waterloo Man Pleads Guilty in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William, J. Hochul, Jr. announced today that Ronald Beaton, 68, of Waterloo, N.Y., pleaded guilty to possession of child pornography before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that Special Agents with Homeland Security Investigations conducted an undercover investigation and discovered that a user of an Internet Protocol address was sharing child pornography files using file-sharing software. The Internet Protocol address was assigned to the defendant and his residence on West Main Street in Waterloo. A search warrant was executed and agents found video files depicting child pornography on the defendant’s computer.
This case was 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 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 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.
The plea is the culmination of an investigation on the part Special Agents from BeatoImmigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge, James C. Spero.
Sentencing is scheduled for November 26, 2013 before Judge Siragusa.Two Donora Women Plead Guilty in Stolen Credit Card ConspiracyRead the Press Release
PITTSBURGH, Pa. - Two Donora residents pleaded guilty in federal court to a charge of conspiracy, United States Attorney David J. Hickton announced today.
Kayla Doree Willis, 22, and Takeisha Lynn Martin, 22, pleaded guilty to one count before Senior United States District Judge Gustave Diamond.
In connection with the guilty plea, the defendants admitted accepting UPS packages containing stolen credit cards, which were later used to purchase merchandise.
Judge Diamond scheduled Willis' sentencing for Dec. 10, 2013 at 10 a.m., and Martin's sentencing for Dec. 10, 2013 at 11 a.m. The law provides for a maximum total sentence of not more than 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of Willis and Martin. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Canton Men Charged for Role in Large Marijuana Shipment Destined for ClevelandRead the Press Release
Two Canton men were charged in U.S. District Court with conspiracy to possess with intent to distribute marijuana following the seizure of a semi tractor-trailer loaded with about 1,700 pounds of marijuana destined for Cleveland, law enforcement officials said.
Charged are Ray Sanchez, 46, and Andy Fagan, 29, both of Canton.
According to an affidavit filed in the case:
Sanchez contacted a counterpart in Texas this month and arranged for a large amount of marijuana to be shipped to Ohio. The next day, Fagan sent $20,000 by Federal Express to the Texas connection, which law enforcement officers suspected related to the shipment of marijuana from Texas to Cleveland.
Sanchez then indicated the marijuana would arrive on Aug. 15.On the morning of Aug. 15, law enforcement officials learned that the shipment of marijuana was intercepted by Homeland Security Investigations agents when the semi crossed the border at Laredo, Texas. The semi contained 1,718 pounds of marijuana hidden in recycling equipment and addressed to Fagan in Ohio.
Sanchez and Fagan were subsequently arrested.
The case is being investigated by a High Intensity Drug Trafficking Agency Task Force comprised of members of the Cleveland Division of Police, Independence Police Department, Broadview Heights Police Department, Brooklyn Police Department, Brook Park Police Department, Cuyahoga County Sheriff’s Office, Federal Bureau of Investigation and Homeland Security Investigations. The Northern Ohio Law Enforcement Task Force also assisted. The case is being prosecuted by Assistant United States Attorney Vasile Katsaros.
A charge is not evidence of guilty. A person is considered innocent until proven guilty and it is the government’s burden to prove guilty beyond a reasonable doubt.
The investigation is ongoing.
Timber Lake Woman Convicted of Misprision of A FelonyRead the Press Release
United States Attorney Brendan V. Johnson announced that Stephanie Vandervier, age 28, of Timber Lake, South Dakota, appeared before U.S. District Judge Roberto A. Lange on August 19, 2013, and pled guilty to a Superseding Information that charged her with Misprision of a Felony.
The maximum penalty upon conviction is 3 years in custody, a $250,000 fine, or both; 1 year of supervised release; and a $100 assessment to the Federal Crime Victims Fund.
The conviction is the result of a January 6, 2013, late night break-in at the Chatter Box Corner Café and Bar, a downtown business in Timber Lake, South Dakota. Vandervier had knowledge of the burglary, provided transportation to her co-defendant from the scene of the burglary, and concealed the same from tribal and federal law enforcement officers. She did not, as soon as possible, make known the same to a judge or other person in civil authority.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.
A presentence investigation was ordered, and a sentencing date was set for November 19, 2013. The defendant was released pending sentencing.Timber Lake Woman Convicted of Misprision of A FelonyRead the Press Release
United States Attorney Brendan V. Johnson announced that Stephanie Vandervier, age 28, of Timber Lake, South Dakota, appeared before U.S. District Judge Roberto A. Lange on August 19, 2013, and pled guilty to a Superseding Information that charged her with Misprision of a Felony.
The maximum penalty upon conviction is 3 years in custody, a $250,000 fine, or both; 1 year of supervised release; and a $100 assessment to the Federal Crime Victims Fund.
The conviction is the result of a January 6, 2013, late night break-in at the Chatter Box Corner Café and Bar, a downtown business in Timber Lake, South Dakota. Vandervier had knowledge of the burglary, provided transportation to her co-defendant from the scene of the burglary, and concealed the same from tribal and federal law enforcement officers. She did not, as soon as possible, make known the same to a judge or other person in civil authority.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.
A presentence investigation was ordered, and a sentencing date was set for November 19, 2013. The defendant was released pending sentencing.Three Individuals Facing up to 40 Years Imprisonment on Crack Cocaine ConvictionsRead the Press Release
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Nine Others Appear for Pleas and Sentencings
MARTINSBURG, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II announced that the following individuals recently appeared in Federal Court in Martinsburg.
MICHAEL SHAVER PAYTON, age 28, and DEHAVEN DARNELL CRAIG, age 28, of Martinsburg, entered pleas of guilty to “Aiding and Abetting the Distribution of 44.1 Grams of Crack Cocaine,” on February 15, 2013, in Martinsburg. PAYTON and CRAIG, who are in custody pending sentencing, face at least 5 and up to 40 years imprisonment and a
$2,000,000 fine.MARTIN C. FELDER, age 34, of Frederick, Maryland, entered a plea of guilty to “Possession with Intent to Distribute More than 28 Grams of Crack Cocaine.” FELDER, who is in custody pending sentencing, faces at least 5 and up to 40 years imprisonment and a
$2,000,000 fine.AKEYLAH HUMPHREY, age 24, of Martinsburg, a co-defendant of PAYTON and CRAIG, entered a plea of guilty to “Possession with Intent to Distribute Crack Cocaine” on February 15, 2013, in Martinsburg. HUMPHREY, who is free on bond pending sentencing, faces up to 20 years imprisonment and a $1,000,000 fine.
DERRICK STANFORD SPENCER, age 35, of Martinsburg, entered a plea of guilty to “Possession with Intent to Distribute Crack Cocaine.” SPENCER, who is in custody pending sentencing, faces up to 20 years imprisonment and a $1,000,000 fine.
JOHN ANDREW REDMAN, age 33, of Martinsburg, entered a plea of guilty to the “Distribution of Crack Cocaine.” REDMAN, who is free on bond pending sentencing, faces up to 20 years imprisonment and a $1,000,000 fine.
CARLOS EDWARD CAREY, age 33, of Martinsburg, was sentenced to 27 months imprisonment to be followed by six years of supervised for the “Distribution of Crack Cocaine within 1,000 Feet of Blue Ridge Community and Technical College.” CAREY was remanded to the custody of the United States Marshal pending designation to a Federal institution.
RONALD PAUL LAWSON, age 34, of Prince George’s County, Maryland, was sentenced to 12 months and 1 day imprisonment to be followed by six years of supervised release for “Distribution of Crack Cocaine within1,000 Feet of the Winchester Avenue Elementary School.” LAWSON, who is free on bond, will self-report to the designated Federal institution.
The PAYTON, CRAIG and HUMPHREY case, and the REDMAN, CAREY and LAWSON cases were prosecuted by Assistant United States Attorney Jarod J. Douglas. The FELDER and SPENCER cases were prosecuted by Assistant United States Attorney Paul T. Camilletti.
These cases were investigated by the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
DANIELLE OSTROWSKI-JONES, age 23, of Chestertown, Maryland, was sentenced to 12 months and 1 day imprisonment to be followed by three years of supervised release for the “Transfer of Stolen Firearms.” OSTROWSKI-JONES, who is free on bond, will self- report to the designated Federal institution. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
JOHN SHINGLER, age 48, of Westernport, Maryland, was sentenced to 3 months imprisonment to be followed by one year of supervised release for “Conversion [theft] of Government Property.” SHINGLER, who is free on bond, will self-report to the designated Federal institution. This case was investigated by the West Virginia State Police-General Services Administration.
The OSTROWSKI-JONES and SHINGLER cases were prosecuted by Assistant
United States Attorney Paul T. Camilletti.MATTHEW WERHOFF, age 55, of Martinsburg, entered a plea of guilty to “Obtaining a Controlled Substance by Fraud.” WERHOFF, who is free on bond pending sentencing, faces up to 4 years imprisonment and a $1,000,000 fine.
CASSANDRA PUGH, age 30, of Hagerstown, Maryland, entered a plea of guilty to “Obtaining a Controlled Substance by Fraud.” PUGH, who is free on bond pending sentencing, faces up to 4 years imprisonment and a $1,000,000 fine
The WERHOFF and PUGH cases were prosecuted by Assistant United States Attorney David J. Perri and were investigated by the Veterans Administration Office of Inspector General.
Steven Prewit Pleads Guilty to Federal Firearms Charge in MidlandRead the Press Release
Midland resident and land surveyor Steven Leonard Prewit, age 54, faces up to ten years in federal prison after pleading guilty this afternoon to the possession of unregistered silencers in violation of National Firearms Registration requirements, announced United States Attorney Robert Pitman, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Dallas Field Office Special Agent in Charge Robert Champion and Federal Bureau of Investigation (FBI) Special Agent in Charge Mark Morgan.
Appearing this morning before United States Magistrate Judge David Counts in Midland, Prewit admitted to illegally possessing eight (8) unregistered firearms silencers. According to court records, a search by the ATF and FBI of both his home and a ranch near Balmorhea on May 2, 2013, uncovered the silencers as well as a number of fully automatic machine guns and improvised explosive devices (IEDs). Specifically, Prewit possessed eight (8) firearms silencers, eighteen (18) fully automatic machine guns, one (1) short barreled rifle and four (4) IEDs; all of which were unregistered. All eight of the unregistered firearms silencers did not have serial numbers or manufacturer’s markings as required.
The investigation into Prewit began in March of this year when ATF and FBI agents received information that Prewit was in possession fully automatic machine guns, firearms silencers and IEDs. An FBI undercover employee was on the ranch with Prewit in both March and April of 2013 when he saw Prewit in possession of multiple fully automatic machine guns, silencers and IEDs. Prewit admitted to the FBI undercover employee that none of the weapons, silencers and/or IEDs was registered to him and that he knew they should have been.
Under Title 26, United States Code, Chapter 53, any individual who possesses a machine gun, destructive device, or firearm silencer is required by federal law to register the firearms and/or devices with the Alcohol Tobacco and Firearms (ATF) National Firearms Act Branch (NFA). The applicant must complete and have approved an ATF Form 4: Application for Tax Paid Transfer and Registration of the Firearm and pay a tax. After the application is approved, the firearm may be transferred and the applicant will be entered into the National Firearms Registration and Transfer Record.
In exchange for Prewit’s guilty plea today, the government has agreed to dismiss counts one and two which involved the possession of the machine guns and explosive devices. Prewit will remain on bond pending his sentencing hearing later this fall. Assistant United States Attorney LaTawn Warsaw is prosecuting this case on behalf of the Government.
St. Landry Parish School Board Member Convicted on Bribery ChargesRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today a federal jury found St. Landry Parish School Board member Quincy Richard Sr., 51, of Opelousas, La., guilty of taking bribes for his vote in favor of a former candidate for St. Landry Parish Superintendent. United States District Judge Richard T. Haik presided over the trial.
On August 20, 2013, after a two-day trial, a jury found Richard guilty of one count of conspiracy to commit bribery and two counts of bribery after deliberating for about an hour. Based on witness testimony and documents admitted into evidence, Richard was shown to have conspired with fellow St. Landry Parish School Board member John Miller, 72, of Opelousas, to receive bribe money from former school board superintendent candidate Joseph Cassimere in return for their support. During July, August and September of 2012, Richard and Miller had a number of private meetings with Cassimere where they negotiated price and payment from Cassimere in exchange for their favorable individual votes as school board members in support of Cassimere’s candidacy for superintendent. At the same time the screening process for the superintendent position was ongoing and by the week of September 16, 2012, five applicants had been publicly named. The final vote was scheduled for September 26, 2012.
The defendants met with Cassimere on September 24, 2012 at the Quarters Restaurant in Opelousas and received $5,000 each in return for their votes. They made it clear that Cassimere had also secured their services, efforts, influence and due diligence to secure the votes of other members of the school board for Cassimere’s candidacy. Richard added that Cassimere could also recoup his $10,000 bribe by adding that amount to his salary request. Richard and Miller instructed Cassimere on how to make and justify a meritorious salary request above the amount listed for the superintendent’s salary as advertised. This conversation of September 24, 2012 had been under FBI video and audio surveillance. After the defendants exited the restaurant, they were confronted by the FBI who recovered the $5,000 payments. Miller was indicted on October 24, 2012 and resigned from his position as a school board member July 28, 2013. Miller pleaded guilty to conspiracy to commit bribery July 1, 2013.United States Attorney Finley stated, “This case was about illegally selling votes. Quincy Richard was thinking about himself, not about the children, the community or the school system. The jury listened to the witnesses, reviewed the evidence and justice was served. Without citizens who come forward, bribery like this would corrode our public servants. This is a great step for the School Board. I hope they can now move forward and take care of the educational work that needs to be addressed for the people of Opelousas.”
“The FBI will continue to aggressively investigate any public corruption undermining critical government institutions that support children such as our public school systems,” said Michael J. Anderson, FBI Special Agent in Charge, New Orleans Division.
Richard faces up to five years in prison, a $250,000 fine and three years in prison for the conspiracy to commit bribery count. He also faces up to 10 years in prison, a $250,000 fine and three years of supervised release for each bribery count. Miller faces up to five years in prison, a $250,000 fine, and three years of supervised release for conspiracy to commit bribery. Sentencing dates have not been set.The FBI-Alexandria Resident Agency conducted the investigation with the assistance of the U.S. Department of Education-Office of Inspector General. Assistant U.S. Attorney Howard C. Parker is prosecuting the case.
Shiprock, N.M., Man Sentenced to Nineteen Years in Federal Prison for Second Degree Murder and Attempted Robbery ConvictionRead the Press Release
ALBUQUERQUE – Malcolm Altisi, 32, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this morning to 19 years in federal prison followed by two years of supervised release for his second degree murder and attempted robbery convictions. Altisi’s sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and John Billison, Director of the Navajo Nation Division of Public Safety.
Altisi and his co-defendant, Emery Whitehair, 21, a Navajo man from Pinon, Ariz., were charged in an eight-count superseding indictment based on events occurring on Oct. 17, 2011, on the Navajo Indian Reservation. According to court records, on that day, Altisi killed Rolan Joe, a 25-year-old Navajo man, after Altisi and Whitehair attempted to rob a different Navajo man earlier that day. The superseding indictment charged Altisi with second degree murder, using a firearm in relation to crime of violence, and assault and attempted robbery offenses. It also charged Whitehair with assaulting the robbery victim with a dangerous weapon, causing the victim serious bodily injury, and using a firearm in relation to a crime of violence.
In March 2013, Altisi entered guilty pleas to the second degree murder and attempted robbery charges. In entering his guilty pleas, Altisi admitted that, on Oct. 17, 2011, he attempted to rob a man at his Shiprock home and brandished a firearm at the robbery victim in an effort to compel the victim to give him money. Altisi also admitted shooting Rolan Joe with a .357 revolver later that day when Mr. Joe traveled to Altisi’s residence to confront Altisi about the attempted robbery. Mr. Joe died as a result of the gunshot wound inflicted by Altisi.
In April 2013, Whitehair pleaded guilty to using a firearm in relation to a crime of violence. Whitehair has been in federal custody since his arrest in Oct. 2011, and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Whitehair faces a prison sentence of not less than seven years and a maximum of life in prison.
The case was prosecuted by Assistant U.S. Attorneys Jennifer M. Rozzoni and Jack E. Burkhead, and was investigated by the Albuquerque and Farmington offices of the FBI and the Shiprock Division of the Navajo Nation Department of Public Safety.Shiprock Woman Sentenced to Federal Prison for Assault ConvictionRead the Press Release
ALBUQUERQUE – Tina Benally, 38, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this morning to 21 months in federal prison followed by two years of supervised release for her assault conviction.
Benally was indicted on Feb. 27, 2013, and charged with assault resulting in serious bodily injury and child abuse. Benally was arrested on March 6, 2013, and has been in federal custody since that time.
On May 22, 2013, Benally entered a guilty plea to the assault charge and admitted that on March 2, 2012, after drinking alcohol, she drove her vehicle at excessive speeds and crashed into a semi-truck. There were two passengers, including a minor child, in Benally’s vehicle at the time of the collision and the adult passenger suffered multiple fractures that required surgery.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
Shaw University Employee Pleads Guilty in Government Grant Theft SchemeRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today ADEMOLA L. EJIRE, 53, pled guilty to mail fraud, in violation of Title 18, United States Code, Section 1341.
U.S. Attorney Walker stated, “Mr. Ejire was entrusted with federal grant funds earmarked for the education and nurturing of young minds in the fields of Math and Science. Unfortunately he breached that trust.”
According to the July 23, 2013, Criminal Information, EJIRE was employed at Shaw University as the Principal Investigator for the United States Environmental Protection Agency (EPA) Research Apprenticeship Program (RAP) grant, and was responsible for managing the program, for which the University was a receipient.
The EPA RAP grant provides funding for a program for specific high school students who have an interest in science and math. Students who meet the academic and attendance criteria in the eighth grade can apply for entry into the program. At the end of the application process, 10 to 12 students are chosen to enter the program in the ninth grade. This is an academic program designed to nurture their science and math background.
From 2001 to July, 2012, EJIRE fraudulently represented that his wife was an employee of Shaw University working as the EPA Program Coordinator for the EPA RAP grant and that his children were participants in the EPA RAP grant by submitting falsified timesheets. The scheme enabled EJIRE to fraudulently obtain approximately $470,000.
At sentencing, set for the Court’s November 2013, term of court, EJIRE, faces up to 20 years imprisonment.
"For years Ademola Ejire funneled grant money intended for high school students into his own accounts. The FBI and our law enforcement partners uncovered his fraudulent scheme and vow to hold those accountable who are trusted to dispense government funding, but choose instead to line their own pockets," said John Strong, Special Agent in Charge of the Charlotte Division of the FBI.
“The funds for the Research Apprenticeship Program are intended to provide an opportunity for honest, hard-working students to realize their dream of a higher education”, said Inspector in Charge Keith Fixel. “The United States Postal Inspection Service is committed to bringing those to justice who would steal those dreams through schemes involving the use of the US Mail.”
The investigation of this case was conducted by United States Environmental Protection Agency – Office of Inspector General, the Federal Bureau of Investigation and the United States Postal Inspection Service. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.
Sandy Winick and Gregory Curry Arrested in Thailand for One of the Largest International Penny Stock Frauds and Advance Fee Schemes in HistoryRead the Press Release
Winick Boasted About His Fake Passports and Ability to Avoid Arrest
BROOKLYN, NY – On Saturday, August 17, 2013, Thai officials working with Federal Bureau of Investigation (FBI) and U.S. Embassy personnel in Bangkok arrested alleged penny stock fraud kingpin Sandy Winick on a provisional arrest warrant in Bangkok, Thailand, to face extradition proceedings to the Eastern District of New York. Earlier today, Thai officials working with FBI and U.S. Embassy personnel in Bangkok arrested Winick’s alleged penny stock fraud co-defendant Gregory Curry on a provisional arrest warrant in Bangkok, Thailand, and he will also face extradition proceedings to the Eastern District of New York. These arrests mark the latest successful chapter in an effort to address fraud in the over the counter securities markets. Previously, on August 13, 2013, the FBI arrested six men in New York, Arizona, New Jersey, Florida and California -- and the Royal Canadian Mounted Police (RCMP), in coordination with the FBI, arrested a seventh man on a provisional arrest warrant in Ontario, Canada -- for engaging in this same international fraud conspiracy that spanned the globe from North America to Europe and Asia. Each arrest resulted from an indictment charging the nine defendants with 24 counts of securities fraud, wire fraud and false personation of Internal Revenue Service (IRS) employees in connection with the sale of securities and conspiracy. 1
The indictment and arrests were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, FBI, New York Field Office.
As set forth in court filings, Sandy Winick masterminded securities fraud and advance fee schemes that victimized investors in approximately 35 nations and generated more than $140 million through various brokerage and bank accounts under their control. Gregory Curry aided Winick in the securities fraud and advance fee schemes. To uncover the international aspects of the scheme and gather evidence, the FBI used wiretaps in the United States and undercover agents in foreign countries.
The indictment and arrests are the result of one of the largest international penny stock investigations ever conducted by the Department of Justice and the FBI and mark the unveiling of a multi-year, ongoing investigation, which included significant assistance from the RCMP, as well as from other U.S. law enforcement agencies and law enforcement authorities in England, as well as assistance from Thailand and China.
Defendant Sandy Winick is charged as the lead defendant in two separate but interrelated schemes. According to the indictment, the defendants first engaged in an international ‘pump and dump’ scheme during which they fraudulently ‘pumped up’ the share price of worthless penny stocks and then ‘dumped’ billions of shares of those stocks by unloading them on unsuspecting victim investors across the globe. Winick boasted about the superiority of the charged scheme compared to another more obvious scam, stating: “That deal is obviously a pump and dump. We know enough to be subtle.” Second, the defendants operated boiler rooms in at least four countries that induced investors in penny stocks, including many of the same victims from the ‘pump and dump’ scheme, to pay advance fees that the defendants promised would enable the victim-investors to sell their penny stocks and recover losses that they incurred. In reality, the defendants simply stole the fees without providing any services, fraudulently extracting millions of additional dollars from their victims. Hundreds of victims live in Brooklyn, Queens and Long Island. As for the group’s recent plans to open a call center in Brooklyn, New York, a co-defendant said, “I tell you what man . . . hitting the Americans would be like taking money from a baby.” Sandy Winick also openly boasted in intercepted phone calls about how he maintained fake passports in assumed names and how regulators and law enforcement officials could never reach him in Thailand.
“As alleged in the indictment, the defendants Sandy Winick and Gregory Curry used our securities markets as a platform from which to run elaborate fraudulent schemes to victimize tens of thousands of unsuspecting investors across the globe. They swindled investors into buying billions of shares of worthless stock, then turned around and used a second scam to pick their pockets yet again. They thought that they could simply run away from their crimes. Today, with the help of our friends in Thai law enforcement, we once again showed that fraudsters cannot hide from the law,” stated United States Attorney Lynch. “I would like to thank our partners at FBI for their hard work on this important investigation.” Ms. Lynch also thanked the Royal Thai Police. Throughout the course of the investigation, significant assistance was also provided by the United States Embassies in Ottawa, Toronto, London, Bangkok and Beijing.
FBI Assistant Director-in-Charge Venizelos stated, “Sandy Winick and Gregory Curry were wanted for their alleged roles in one of the largest international penny stock frauds and advance fee schemes in history. Their arrests are a significant accomplishment for the FBI as we continue our work in this ongoing investigation. We would like to thank our overseas partners, especially the Royal Thai Police, for their ongoing assistance with this matter.”
Winick has been charged with one count of conspiracy to commit securities fraud, two counts of conspiracy to commit wire fraud, 15 counts of wire fraud, four counts of securities fraud and two counts of false personation of an officer of the United States. Curry has been charged with: one count of conspiracy to commit wire fraud, 5 counts of wire fraud and two counts of false personation of an officer of the United States. If convicted, Winick and Curry will face up to 20 years’ imprisonment for each count of conspiracy to commit wire fraud, substantive wire fraud and substantive securities fraud, and up to five years’ imprisonment for conspiracy to commit securities fraud. Winick and Curry face up to three years in prison for each count of false personation of an officer of the United States. In addition, all proceeds of fraudulent schemes are subject to forfeiture. Now that they have been arrested, Winick and Curry will begin extradition proceedings from Thailand to the United States. For the other defendants, the next court date is scheduled for September 5, 2013, at 12:30 p.m., before the Honorable William F. Kuntz II.
The government’s case is being prosecuted by Assistant United States Attorneys Christopher A. Ott, Sylvia Shweder and Melanie Hendry.
This prosecution was the result of efforts by President Barack Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendants
SANDY WINICK
Citizenship: Canada
Age: 55
Bangbok, ThailandGREGORY CURRY
Citizenship: Canada
Age: 63
Bangbok, Thailand_____________________________
1The charges contained in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty..
San Jose CPA Convicted of Tax FraudRead the Press Release
SAN JOSE, Calif. – On August 16, 2013, a federal jury convicted Steven Frank Boitano with filing false tax returns, announced United States Attorney Melinda Haag and Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division.
According to evidence presented at trial, beginning in 2004, Boitano, a Certified Public Accountant and partner with the accounting firm of Boitano, Sargent & Lily, was responsible for preparing the tax returns for his firm. As a part of these responsibilities, Boitano prepared Schedules K-1, which detailed each partner’s share of the firm’s income, in addition to his tax return preparation duties and other accounting related responsibilities for his clients. Boitano’s gross income for the years 2001 through 2007 was at least $275,000 for each year.
Between the years 1991 and 2007, Boitano failed to timely file his individual federal income tax returns. Instead, for each of these years, he submitted a request for an extension of time to file his tax returns from April until August or October, including a payment with the extension requests. Thereafter, as the extended due dates for each year passed, Boitano failed to file his individual income tax returns.
Boitano was audited by the IRS at least twice between 1991 and 2007. In 1995, the IRS prepared Substitutes for Returns and made tax assessments on Boitano’s behalf for 1991, 1992 and 1993. Despite the contact with the IRS, Boitano continued to fail to file personal income tax returns. In 2005, the IRS again prepared a Substitute for Return and tax assessment on Boitano’s behalf for 2004. In June of 2009, the case was assigned to an IRS Revenue Agent. The Revenue Agent met with Boitano three times. During the third meeting, Boitano provided the Revenue Agent with signed married filing-jointly federal income tax returns [Forms 1040] for 2001, 2002, and 2003. On each of these returns, Boitano falsely and fraudulently reported making estimated tax payments of $26,000, $38,000, and $57,000, respectively. As a result of these fabricated estimated tax payments, each return claimed a refund to which Boitano was not entitled.
On the first day of trial, Boitano pleaded guilty in open court to Counts Four, Five and Six of the Indictment, charging him with failing to file federal income tax returns for 2005, 2006 and 2007. The Jury convicted him of counts One, Two, and Three of the Indictment, charging him with filing false tax returns for 2001, 2002 and 2003.
Boitano, 58, of San Jose, was indicted on August 25, 2011.
The maximum statutory penalty for each count of filing a false tax return, in violation of Title 26, U.S.C § 7206(1), is three years in prison and a fine of $250,000. The maximum statutory penalty for each count of failure to file a tax return, in violation of Title 26, U.S.C § 7203, is one year in prison and a fine of $100,000. However, any sentence following this conviction will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorney Michael G. Pitman and Trial Attorney Charles O’Reilly of the Justice Department Tax Division are prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
San Diego Real Estate Developer, Mark Hofmann, Charged with Wire FraudRead the Press Release
MARK HOFMANN, age 55, a real estate developer from San Diego, California was charged in a one-count Bill of Information with wire fraud, announced United States Attorney Dana J. Boente.
According to the Bill of Information, in late 2008, HOFMANN sought investors to invest approximately $3,000,000 for the acquisition of an approximately five-acre tract of land adjacent to the Lakeview Regional Medical Center in Covington, Louisiana and for the development of two office buildings on that land. Ultimately, HOFMANN and his partner convinced Bolivar Investors Group, L.L.C., an investment group organized by members of the Crescent River Port Pilots’ Association, to invest the money. Together, HOFMANN, his partner, and Bolivar, created a new entity, “Newtrac West,” to facilitate the purchase and development in February 2009. Shortly thereafter, HOFMANN and his partner opened a bank account in the name of Newtrac West for which only they were listed as signatories. Between January 20, 2009, and July 14, 2009, Bolivar made six deposits, including five by wire, into the Newtrac West bank account, totaling approximately $3,000,000.
The Bill of Information further alleges that between January 26, 2009, and December 14, 2009, on at least twenty-four occasions, HOFMANN withdrew funds from the account without authorization and used them to repay his personal expenses and debts apart from and unrelated to the purchase or development of the land in Covington. In total, HOFMANN misappropriated approximately $404,000. Subsequently, HOFMANN and his partner created doctored bank statements based on the real bank statements for the Newtrac West account that were designed to hide the unauthorized withdrawal of funds for HOFMANN’S personal use, and, further, to deceive representatives of Bolivar into believing that Newtrac West was in excellent financial condition. HOFMANN provided these fraudulent statements to Bolivar’s representatives regularly.
If convicted, HOFMANN faces a maximum term of imprisonment of not more than 20 years, followed by up to 3 years of supervised release, and a $250,000 fine.
United States Attorney Boente reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Jordan Ginsberg.
(Download Bill of Information )
Sam Vernon Windy Boy, Jr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 16, 2013, before Chief U.S. District Judge Dana L. Christensen, SAM VERNON WINDY BOY, JR., a 68-year-old resident of Box Elder and an enrolled member of a federally recognized tribe, was sentenced to a term of:
- Prison: 63 months
- Special Assessment: $100.00
- Supervised Release: 10 years
WINDY BOY was sentenced in connection with his guilty plea to abusive sexual contact.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
In August of 2012, WINDY BOY was in his home alone with the 9-year-old victim. WINDY BOY approached the victim in the living room/kitchen area and made sexual contact.
The offense occurred within the exterior boundaries of the Rocky Boy's Indian Reservation.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that WINDY BOY will likely serve all of the time imposed by the court. In the federal system, WINDY BOY does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Salem Engineering Firm Settles Lawsuit Alleging Fair Housing Act ViolationsRead the Press Release
PORTLAND, Ore. – The Justice Department announced today that the engineering firm, Multi/Tech Engineering Services, Inc., (Multi/Tech) located in Salem, Oregon, has agreed to pay $60,902.70 to settle a lawsuit pending in the U.S. District Court of Oregon, which alleges that Multi/Tech violated the Fair Housing Act by designing an apartment complex with steps and other features that made it inaccessible to persons with disabilities. This settlement will both assist in compensating victims of discrimination and in removing accessibility barriers at Gateway Village, a 275-unit complex in Salem. In May 2013, the Justice Department and the Fair Housing Council of Oregon (FHCO) had previously settled with the developers of the property under similar injunctive terms and monetary relief. This settlement resolves the remaining substantive claims of the lawsuit.
Under the terms of the parties’ agreement, Multi/Tech will pay $7,902.20 in damages to the FHCO, which had intervened in the lawsuit as an aggrieved person under the Fair Housing Act. Multi/Tech will also pay an additional $32,000 to a settlement fund for the purpose of compensating individuals with disabilities who were impacted by the alleged accessibility violations. Furthermore, Multi/Tech will pay $21,000 to a fund established to take extensive actions to make the complex accessible to persons with disabilities. These corrective actions, which will be taken by the developer, include removing steps from sidewalks, widening interior doorways, reducing threshold heights, replacing excessively-sloped portions of sidewalks, and installing properly-sloped curb ramps to allow persons with disabilities to access the sidewalks from the parking areas.
“Steps, narrow doors and other accessibility barriers prevent people with disabilities from exercising the same rights to obtain housing of their choice that other people enjoy,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “We will hold builders and designers accountable and those who fail to follow the law will face enforcement action.”
“The right to accessible housing is a fundamental protection afforded by law,” stated U.S. Attorney Amanda Marshall. “I am committed to working with the Fair Housing Council of Oregon, and our federal, state, and local partners to ensure that those who design and construct housing units make them accessible to persons with disabilities in compliance with the Fair Housing Act.”
The lawsuit, filed in September 2011, arose as a result of a complaint filed by the Fair Housing Council of Oregon with the U.S. Department of Housing and Urban Development (HUD). After HUD investigated the complaint, it issued a charge of discrimination and referred the matter to the Justice Department.
“This settlement highlights the importance of the designer in guaranteeing equal opportunity access to housing for people with physical limitations. We encourage building design professionals around the country to understand their responsibility under the Fair Housing Act’s 1988 design and construction requirements and go well beyond these minimum standards to make all housing fully accessible, ” said Pegge McGuire, Executive Director, Fair Housing Council of Oregon.
“For more than two decades the law has required that newly-built multifamily housing provide equal access to people with disabilities,” said Bryan Greene, HUD’s Acting Assistant Secretary for Fair Housing and Equal Opportunity. “Throughout that time, HUD and the Department of Justice have educated builders, design professionals and others on those requirements, most recently through guidance issued this past April. Where those efforts fail, our agencies will gain compliance through enforcement of the law.”
Individuals who are entitled to share in the settlement fund will be identified through a process established in the settlement. Persons who believe they were subjected to unlawful discrimination at Gateway Village either when they lived there or considered living there should contact the Justice Department toll-free at 1-800-896-7743 mailbox # 9993, or e-mail the Justice Department at [email protected].
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777.
For more information, please see the attached consent order Here
Rosebud Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man convicted of Abusive Sexual Contact was sentenced on August 19, 2013, by U.S. District Judge Roberto A. Lange.
Laun Leroy McCloskey, age 19, was sentenced to 37 months in custody, 8 years of supervised release, and $100 to the Federal Crime Victims Fund.
McCloskey was indicted by a federal grand jury on April 2, 2013, and pled guilty to the charge on April 30, 2013.
The conviction stems from an incident that took place on March 16, 2013, when McCloskey had sexual contact with a minor.
The investigation was conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
McCloskey was remanded to the custody of the U.S. Marshals Service.Rockford Man Sentenced to 84 Months in Federal Prison for Traveling to California to Engage in Sex with A MinorRead the Press Release
ROCKFORD — A Rockford, Ill. man was sentenced today by U.S. District Judge Frederick J. Kapala to 84 months in federal prison for traveling from Illinois to California to engage in sex with a minor, of which 48 months are to be served consecutive to imprisonment on an Illinois state sentence. The defendant, DONALD TROTTER, 58, who pled guilty to the federal charges on Aug. 14, 2012, was also ordered by Judge Kapala to pay a fine of $25,000, as well as the cost of his representation by the Federal Public Defender.
Trotter has been in custody since his arrest on Aug. 5, 2009, in Long Beach, California, where he was ordered to be returned to Illinois to face both federal and state charges. According to the written plea agreement filed in federal court, Trotter had a sexual relationship with a 13 year old victim during and prior to 2009. During the relationship, Trotter told the victim that his true name was “Daniel Black” and that he was a government agent. After renting an apartment in Long Beach, California, intending to cohabit with the victim, Trotter arranged for the victim to travel to California on Aug. 1, 2009. On Aug. 3, 2009, Trotter traveled by plane from Illinois to California intending to engage in sexual acts with the minor victim.
Trotter was previously convicted in Illinois of state charges, including three counts of criminal sexual assault and one count of child abduction. He was sentenced to a total of 45 years in state prison and is presently serving that sentence. Following his release from Illinois state prison, Trotter will be taken into federal custody to serve the sentence imposed by the federal court. He will not be eligible for parole on his federal sentence.
The sentencing was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and Chet Epperson, Chief of the Rockford Police Department.
The government was represented by Assistant U.S. Attorney Michael D. Love.
Rochester Woman Under Indictment for Threatening to Kill the President Arrested for Violating Pre-Trial Release ConditionsRead the Press Release
ROCHESTER, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Christine Wright Darrisaw, 37, of Rochester, N.Y., who is currently under indictment for threatening to kill the President and making a false statement to Secret Service Agents, was arrested and charged with violating her conditions of pre-trial release.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that following the defendant’s arraignment in August 2012, Darrisaw was released on conditions pending trial. On August 19, 2013, the Government moved to have the defendant arrested and detained based on several recent police contacts, including arrests, Darrisaw has had while on release awaiting trial.According to the motion filed by the Government, the defendant was arrested by the Rochester Police Department on July 12, 2013 for disorderly conduct. On July 25, 2013, a warrant was issued for the defendant’s arrest after Darrisaw allegedly entered the Rochester Library which she is banned from entering.
On August 12, 2013, during an incident at the Webster Avenue Rec Center, the defendant allegedly told a victim “My husband has guns. I’m gonna shoot you! I’ll shoot every guy here, and I’ll kill anyone that touches my kids!” before making a reference to President Obama. And on August 14, 2013, Darrisaw allegedly called the Social Security Administration’s 800 Number and stated “I am going to the office tomorrow and take that agent to hell with me” before ending the call.
The defendant is being held pending a detention hearing which is scheduled for August 23, 2013 at 9:30 a.m. before U.S. Magistrate Judge Jonathan W. Feldman.The arrest is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge, Tracy Gast.
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.Pharmacist Pleads Guilty to Wire FraudRead the Press Release
COEUR D’ALENE – Steven R. Milot, 66, of Kellogg, Idaho, pleaded guilty today to wire fraud, U.S. Attorney Wendy J. Olson announced. Milot was charged in a one count information filed in United States District Court on July 24, 2012.
According to the plea agreement, Milot was employed as a pharmacist at Osburn Drug in Kellogg for many years. In 2012, the owner became suspicious that Milot was misappropriating controlled substances. After conducting an abbreviated audit, the owner found that the pharmacy was short several controlled substances; video surveillance recorded Milot misappropriating the drugs. Milot admitted to stealing large quantities of Oxycontin for his personal use. In order to cover up the theft and avoid detection, Milot ordered controlled substances via wire transmissions.
The charge of wire fraud is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set is November 12, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
The case was investigated by the Tactical Diversion Group of the Drug Enforcement Administration and the Idaho State Police.
Oney Joseph Baker Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 16, 2013, before Chief U.S. District Judge Dana L. Christensen, ONEY JOSEPH BAKER, a 39-year-old resident of Great Falls, was sentenced to a term of:
- Prison: 210 months
- Special Assessment: $100.00
- Supervised Release: 5 years
BAKER was sentenced in connection with his guilty plea to being a felon-in-possession of firearms and an armed career criminal.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica A. Betley, the government stated it would have proved at trial the following:
On August 17, 1999, BAKER was sentenced in U.S. District Court to 51 months imprisonment after a jury found him guilty of conspiracy to distribute a controlled substance, possession with intent to distribute a controlled substance, and distribution of a controlled substance. The sentence of imprisonment was to be followed by three years of supervised release, wherein the court ordered BAKER to not own or possess a firearm.
On October 30, 2002, the Montana Eight Judicial District Court in Cascade County sentenced BAKER for the crime of felony criminal possession of dangerous drugs. Specifically, the court sentenced BAKER to three years to the Department of Corrections, and ordered Baker to not own, possess, or be in control of any firearms or deadly weapons.
On April 27, 2007, the Montana Eighth Judicial District Court in Cascade County sentenced BAKER for three felony convictions: assault with a weapon, theft, and robbery. The three convictions were from different cases, however, they were resolved in one global plea agreement and sentencing. The court sentenced BAKER to ten years imprisonment at the Montana State Prison. It also specifically ordered that he "shall not own, possess, or be in control of any firearms or deadly weapons."
On July 8, 2012, around 3:09 pm, Great Falls police officers were dispatched to Bobo's Casino for a report of an armed robbery. Officers arrived at Bobo's and spoke with an employee of the casino. The employee said she had been throwing trash away when a man entered the casino through the east side door. She turned toward the man and he pointed a small black handgun at her head. The man, described as a Native American male, approximately 5'9" and 160 pounds, yelled, "give me the money, bitch!" The employee emptied the money in her apron, which contained approximately $300 to $400 dollars in cash. The man became upset and said, "that's, not all there is, bitch!" The employee opened the cash register. The register contained only loose change and the man tossed the register in anger once he saw it did not contain any cash. He ran out of the same east side door, got into a green minivan, and drove off at a high rate of speed.
The manager of Bobo's Casino arrived shortly thereafter and pulled up the surveillance video of the time of the robbery. Officers observed that the robbery took place exactly as the employee had described. Detectives then began to investigate the robbery, and numerous tips were called in to the police department.
The next day a concerned citizen called the police and stated there was a suspicious green minivan parked on the street that he had not seen the previous evening. Officers responded to the report of the suspicious car. They believed the parked minivan matched the description of the minivan used in the robbery. After again viewing the surveillance video, the officers found the minivan in the video was clearly the minivan parked on the street.
Numerous other tips continued to be reported. The tips and further investigation indicated that BAKER had robbed the casino.
On July 18, 2012, law enforcement observed BAKER leave a house carrying a dark colored piece of rolling luggage and a blue duffel bag. BAKER was with two other individuals. Law enforcement began to follow the car once BAKER drove away. At one point, BAKER tried to conceal the car by driving into an alley. A Deputy U.S. Marshal turned on his top lights and siren to initiate a traffic stop and the car immediately fled at a high rate of speed through neighborhood streets.
The car stopped at an apartment complex and all three people fled on foot. Police caught the other individuals, but BAKER had fled through the neighborhoods. Law enforcement yelled at BAKER to stop running and he refused to stop. BAKER dropped the duffel bag near a garage as he ran. A neighbor recovered the duffel bag and provided it to police. Three detectives finally apprehended BAKER who had to be held down by all three men.
Detectives searched the duffel bag they recovered from BAKER, as well as the vehicle. The detectives recovered a Lorcin, model L380, .380 caliber semi-automatic pistol from the front passenger seat floorboard. This pistol had been in BAKER's possession, and it contained seven rounds of .380 caliber ammunition, including one round that was in the chamber. A search of the duffel bag revealed a fully loaded Mossberg, model 500A, 12 gauge pump action shotgun. Law enforcement seized five rounds of 12 gauge ammunition from the shotgun. Detectives also found 25 rounds of 20 gauge ammunition and 18 rounds of .380 caliber ammunition in the duffel bag.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that BAKER will likely serve all of the time imposed by the court. In the federal system, BAKER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Great Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Ohio Man Fined $8,000, Forfeits IvoryRead the Press Release
An Ohio man was fined $8,000 and ordered perform community service after previously pleading guilty to falsely labeling a package containing wildlife items, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio
Mark St. John, 53, of Northwood, Ohio, falsely labeled an elephant ivory shipment destined for an overseas buyer on June 1, 2011, according to court documents.
He also forfeited his collection of more than 700 pieces of ivory as part of the plea, according to court documents.
The investigating agency in this case is the United State Fish & Wildlife Service, Delaware, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
Northern California Residents Indicted for Filing False Liens Against IRS Employees and Tax FraudRead the Press Release
The Justice Department announced today the unsealing of a superseding indictment returned by a federal grand jury in Sacramento, Calif., charging Teresa Marie Marty, Charles Tingler and Victoria Tingler, all of Placerville, Calif., with conspiracy to defraud the United States and filing multi-million dollar liens against government officials.
Marty is charged with filing liens against the property of three Internal Revenue Service (IRS) employees involved in the collection of taxes she owed the IRS. She also filed liens of at least $84 million against the property of two Justice Department attorneys involved in a lawsuit filed against her in 2009 to enjoin her and her business, Advanced Financial Services (AFS), from preparing tax returns.
According to the superseding indictment, the Tinglers were clients of Marty and AFS, who filed a false tax return in 2008 fraudulently claiming a refund of $358,415. The indictment charges the Tinglers, as well as Marty, with filing this tax return. When the IRS tried to collect the fraudulently obtained refund, both Mr. and Mrs. Tingler filed multiple liens against the IRS revenue officer who was handling their collection case.
According to the charging documents the liens disclosed the social security numbers of the respective government employees. Marty and the Tinglers are also charged with multiple counts of unlawfully using the social security numbers of the government employees in the liens they filed with the California Secretary of State.
Finally, the indictment charges Marty, Mr. Tingler and AFS office manager Pamela Harris, of Placerville with participating in a conspiracy to defraud the IRS. The indictment alleges that as part of the conspiracy, Harris and Marty engaged a commercial collection agency to collect one of the three false liens that Mr. Tingler had filed, one of which was in the amount of $500,000.
Marty, Harris, and Marty’s daughter, Rebecca Bandera-Marty, had previously been indicted in June 2013 for a large-scale tax-fraud scheme. Those charges are included in this superseding indictment. According to the superseding indictment, in 2008 and 2009 Marty, Bandera-Marty, and Harris conspired to file at least 250 false individual federal income tax returns on behalf of individuals who resided in twenty-six states, and which claimed more than $60 million in false federal income tax refunds.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, the defendants face up to five years in prison for the conspiracy charge as well as each charge of filing a false claim and unlawfully disclosing a social security number. Each retaliatory lien count carries a maximum penalty of 10 years in prison.
The case was investigated by the Treasury Inspector General for Tax Administration and by IRS-Criminal Investigation and is being prosecuted by Justice Department Tax Division Trial Attorney Ignacio Perez de la Cruz and Assistant U.S. Attorney Matthew Segal in the Eastern District of California.
North Dakota Man Pleads Guilty to Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that Ricardo Avila, age 53, of North Dakota, appeared before U.S. District Judge Roberto A. Lange on August 19, 2013, and pled guilty to Count I of the Indictment that charged him with Distribution of a Controlled Substance.
The maximum penalty upon conviction is 20 years of imprisonment, a $1,000,000 fine, or both; at least 3 years of supervised release and an additional 2 years of supervised release upon revocation; and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
An undercover officer connected with the Northern Plains Safe Trails Drug Enforcement Task Force was introduced to Avila and arranged a purchase of cocaine from him. On April 12, 2012, Avila delivered to the undercover officer a substance that testing confirmed was 28.3 grams of powder cocaine, a Schedule II controlled substance.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Avila was remanded to the custody of the U.S. Marshals Service pending sentencing, which has been set for November 18, 2013.New York Resident Sentenced to More Than Six Years Imprisonment on Oxycodone ConvictionRead the Press Release
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(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Eight Others Appear for Pleas and Sentencing
CLARKSBURG, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II announced that the following individuals recently appeared in Federal Court in Clarksburg.
BRIAN CLARKE, age 25, of Brooklyn, New York, was sentenced to 78 months imprisonment to be followed by three years of supervised release pursuant to an earlier entered plea of guilty to “Distribution of Oxycodone” in Monongalia County, West Virginia. CLARKE was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Attorney Zelda E. Wesley and investigated by the West Virginia State Police.
NATHAN SCOTT, age 29, of Columbus, Ohio, was sentenced to 63 months imprisonment to be followed by three years of supervised release for pursuant to an earlier entered plea of guilty to “Possession with Intent to Distribute Cocaine” SCOTT was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Attorney Zelda E. Wesley and investigated by Morgantown Police Department, West Virginia State Police and the United States Marshals Office.
ANTHONY CRIPPIN, age 29, of Morgantown, West Virginia, was sentenced to 41 months imprisonment to be followed by six years of supervised release pursuant to an earlier entered a plea of guilty to “Distribution of Heroin within 1,000 Feet of WVU.” CRIPPIN was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Assistant United States Attorney Andrew R. Cogar and investigated by the Mon Valley Drug Task Force and the West Virginia State Police. The task force consists of officers from Morgantown Police Department, the Monongalia County Sheriff’s Department, and the Drug Enforcement Administration.
JENNIFER KELLEY, age 28, of Morgantown was sentenced to four years probation, with the first eight months to be served under home confinement with electronic monitoring, pursuant to an earlier entered plea of guilty to “Distribution of Cocaine Hydrochloride.” This case was prosecuted by Assistant United States Attorney Zelda E. Wesley and was investigated by the West Virginia State Police-Bureau of Criminal Investigations.
SHANE LEWIS GILLESPIE, age 24, of Clarksburg, entered a plea of guilty to “Possession of a Firearm by an Unlawful User of and Addict to a Controlled Substance.” GILLESPIE, who is in custody pending sentencing, faces up to 10 years imprisonment and a $250,000 fine. This case was prosecuted by Criminal Chief Shawn A. Morgan and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Clarksburg Police Department and the Belpre, Ohio, Police Department.
ORTHON HERNANDEZ, age 30, an inmate at USP Hazelton, entered a plea of guilty to “Assault with a Dangerous Weapon with Intent to do Bodily Harm.” HERNANDEZ was sentenced to 24 months imprisonment to run consecutive to his current 93-month sentence.
BERNARD BATTLE, age 39, an inmate at USP Hazelton, entered a plea of guilty to four counts of “Indecent Exposure.” BATTLE was sentenced to 360 days imprisonment to run consecutive to his current 36-year sentence.
The HERNANDEZ and BATTLE cases were prosecuted by Assistant United States Attorney Brandon S. Flower and investigated by the Special Investigative Services Unit at USP Hazleton.
CASEY SMITH, age 21, of Morgantown, West Virginia, entered a plea of guilty to “Distribution of Oxycodone.” SMITH, who is free on bond pending sentencing, faces up to 20 years imprisonment and a $1,000,000 fine. This case was prosecuted by Assistant United States Attorney Zelda E. Wesley and investigated by Mon Valley Drug Task Force.
TIMOTHY LINGO, age 30, of Westover, West Virginia, entered a plea of guilty to “Felon in Possession of a Firearm.” LINGO, who is in custody pending sentencing, faces up to 10 years imprisonment and a $250,000 fine. This case was prosecuted by Assistant United States Attorney Zelda E. Wesley and investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives.
New York Maintenance and Construction Company Owner Pleads Guilty in Manhattan Federal Court to Failing to Pay Payroll TaxesRead the Press Release
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, announced today the guilty plea of Thomas Nastasi III, 46, of Mt. Kisco, N.Y., to one count of willful failure to pay the Internal Revenue Service (IRS) the payroll taxes of his company, Nastasi Maintenance & Construction LLC. Nastasi pleaded guilty before U.S. District Judge Paul G. Gardephe in the Southern District of New York.
According to the previously filed indictment and statements made during Nastasi’s guilty plea, from 2001 through 2011, Thomas Nastasi III owned and operated several Manhattan construction and maintenance companies, including Nastasi Maintenance & Construction. As the president of the companies, Nastasi was responsible for withholding payroll taxes from his employees and paying them over to the IRS. Those taxes included the employees’ income taxes, Social Security, and Medicare taxes. Nastasi accumulated over $1.7 million in payroll taxes that were owed but never paid to the IRS. Those taxes included the employer’s portion of Social Security and Medicare taxes for his employees.
Court documents and statements also established that instead of paying the companies’ payroll taxes to the IRS, Nastasi used company funds to pay hundreds of thousands of dollars in personal expenses, for items including boat-related expenses and cigars. Nastasi also made false statements to the IRS in the course of its attempts to obtain delinquent tax returns and collect the corporate and personal taxes owed by Nastasi and his companies.
“Employers who use taxes withheld from their employees’ paychecks to fund their own lavish lifestyles instead of paying over the funds to the government show a blatant disregard not only for the law, but also for all honest taxpayers who work hard and play by the rules,” said Assistant Attorney General Kathy Keneally. “Business owners who commit these crimes not only face jail time, but also must repay the stolen taxes, with interest and penalties.”
“Business owners who misdirect employment taxes to their own personal ends are stealing from their employees and all taxpayers’ futures,” said Richard Weber, Chief of IRS Criminal Investigation. “Thomas Nastasi III funded an extravagant lifestyle with his ill-gotten gains, including $67,000 spent on cigars. When investigated, he made false statements in an attempt to obstruct our special agents. IRS Criminal Investigation vigorously pursues anyone who collects taxes and fails to timely remit those taxes.”
Sentencing is set for Dec.19, 2013, at 2:30 p.m. before Judge Paul Gardephe.
Assistant Attorney General Keneally thanked special agents of IRS-Criminal Investigation and the U.S. Attorney’s Office for the Southern District of New York for their efforts in this case.
Tax Division Assistant Section Chief Nanette L. Davis is prosecuting this case.
New Jersey Businessman Sentenced for Tax and Fraud ChargesRead the Press Release
PHILADELPHIA - Mark Olkowski, 62, of North Wildwood, NJ, was sentenced today to three months in prison for filing false personal income tax returns with the Internal Revenue Service from 2006 through 2009 and wire fraud. Olkowski, a business partner in K & O Sporting Goods on Moyamensing Avenue in Philadelphia, pleaded guilty on April 24, 2013 to the tax charges and to 15 counts of wire fraud committed upon the Pennsylvania State Unemployment Compensation system. K & O is a distributor of t-shirts and other clothing items to labor unions, municipalities, and political candidates.
Between 2006 through 2009, Olkowski failed to report a total of approximately $148,000 of income to the IRS. The unreported income included significant sums of cash received by K & O but which Olkowski pocketed and did not deposit to K & O business accounts. It also included income he received from making personal expenditures using corporate credit cards. The tax loss on this unreported income is approximately $25,000.
Olkowski made two false applications for unemployment compensation benefits. In his applications, Olkowski falsely claimed to have been laid off from K & O, and did not tell unemployment compensation authorities that he was an owner of K & O Sporting Goods and that he was receiving income from K & O while he was applying for unemployment benefits. The loss to the unemployment compensation system is approximately $16,000.In addition to the prison term, U.S. District Court Judge Harvey Bartle III ordered Olkowski to pay restitution to the IRS in the amount of $56,459, which he has paid, and to the Pennsylvania State Unemployment Compensation system in the amount of $16,046, a fine of $15,000, a $1,900 special assessment, and two years of supervised release.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Paul L. Gray.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Mingo Pedophile Who Produced Child Pornography Pleads Guilty to Federal ChargeRead the Press Release
Paul Jenkins left DVD that contained a video of child pornography inside rented computer
CHARLESTON, W.Va. – A 33-year-old Mingo County pedophile faces up to 30 years in prison after pleading guilty to production of child pornography, announced U.S. Attorney Booth Goodwin. Paul Silas Jenkins, of Williamson, pleaded guilty today in federal court before United States District Judge John T. Copenhaver, Jr. in Charleston.
U.S. Attorney Goodwin said, “Cases involving the exploitation of innocent children are so critical. This case underscores the fact that sexual exploitation remains a serious problem.” Goodwin continued, “My initiative to combat despicable acts of child sexual abuse will continue.”
Beginning some time in 2010 and December 2011, Jenkins established a relationship with a minor between the age of 12 and 16 years old. During that time, Jenkins persuaded the minor to perform sexual acts and then produced a video of the conduct. Jenkins copied the video containing child pornography onto a recordable DVD. The DVD was discovered inside a rented computer that was returned to a Rent-A-Center located in Pike County, Kentucky.
Jenkins is scheduled to be sentenced on November 20, 2013.
The FBI and the West Virginia Internet Crimes Against Children Task Force conducted the investigation. Assistant United States Attorney Jennifer Rada is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Marshall County Resident Convicted for the Conspiracy to Distribute HeroinRead the Press Release
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Six Others Appear for Pleas and Sentencing
WHEELING, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II announced that the following individuals recently appeared in Federal Court in Wheeling.
AMANDA ALLISON, age 26, of Cameron, West Virginia, entered a plea of guilty to “Conspiracy to Distribute Heroin” from January of 2013 to April 6, 2013. ALLISON, who is in custody pending sentencing, faces up to 20 years imprisonment and a fine of $1,000,000
TYLER JAY HOYLE, age 22, of Waynesburg, Pennsylvania, co-defendant of ALLISON, was sentenced to 70 months imprisonment to be followed by three years of supervised release for “Conspiracy to Distribute Heroin” from January of 2013, to April 6, 2013. in Cameron. HOYLE was remanded to the custody of the United States Marshal pending designation to a Federal institution. The case will be prosecuted by Assistant United States Attorney Randolph J. Bernard and investigated by the Marshall County Drug Task Force consisting of officers and agents from the Moundsville Police Department, the Marshall County Sheriff’s Department and the Drug Enforcement Administration.
ERICA MORRIS HERCULES, age 29, of Wheeling, was sentenced to 18 months imprisonment to be followed by three years of supervised release pursuant to an earlier entered plea of guilty to “Aiding and Abetting a Prohibited Person in the Possession of a Firearm.” HERCULES had previously been convicted in the Circuit Court of Ohio County of the felony offense of “Uttering.” HERCULES was remanded to the custody of the United States Marshal pending designation to a Federal institution. The case was prosecuted by Assistant United States Attorney Stephen L. Vogrin and was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives along with the Wheeling Police Department.
MATTHEW SCOTT HEDRICK, age 32 and KIMBERLY LYNN NELSON, age 30, of New Martinsville, West Virginia, entered pleas of guilty to “Possession with Intent to Distribute Heroin.” HEDRICK and NELSON, who are in custody pending sentencing, face up to 20 years imprisonment and a $1,000,000 fine. This case was prosecuted by Assistant United States Attorney Randolph J. Bernard and investigated by the West Virginia State Police-Bureau of Criminal Investigations.
JAMES GREATHOUSE, age 23, of Wheeling, entered a plea of guilty to “Felon in Possession of a Firearm.” GREAT HOUSE, who is in custody pending sentencing, faces up to 10 years imprisonment and a $250,000 fine.
STEPHEN J. BOSICK, JR., age 18, of Weirton, West Virginia, entered a plea of guilty to “Use, Possession, Carrying and Brandishing a Firearm During a Crime of Violence.” BOSICK, who is free on bond pending sentencing, faces at least seven years and up to life imprisonment and a fine of $250,000.
The GREATHOUSE and BOSICK cases were prosecuted by Assistant United States Attorney Stephen L. Vogrin and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Madison Man Sentenced for Conspiracy and Theft of Government PropertyRead the Press Release
Jackson, Miss. – George Hilliard, 44, of Madison, was sentence in U.S. District Court today to 21 months in federal prison for conspiracy to commit theft of government property and theft of government property. He was also ordered to pay joint restitution in the amount of $20,499.00.
Hilliard was indicted along with three co-defendants following an FBI sting on September 30, 2011 involving the robbery of a motel room they believed was being used by a drug dealer. He was tried and found guilty by a jury on June 13, 2013.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Mike Hurst and Jerry Rushing.
The other defendants in this case have each pled guilty to theft of government property charges and been sentenced.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.
Lowellville Man Indicted on Child Pornography ChargesRead the Press Release
A federal grand jury returned a two-count indictment charging Paul C. Schumacher, Jr., age 50, of Lowellville, Ohio, with receiving and distributing visual depictions of minors engaged in sexually explicit conduct and possessing child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on or about June 19, 2013, Schumacher knowingly received and distributed computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct. Additionally, the indictment charges that on July 30, 2013, Schumacher possessed a computer containing child pornography.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed that statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the United States Secret Service and the Ohio Internet Crimes Against Children Task Force.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Local San Diego Physician Charged with Multiple Counts of Tax EvasionRead the Press Release
San Diego – A local physician was arraigned this afternoon on eight counts of tax evasion. According to the indictment, from at least calendar years 2004 through 2011, William Richard Bailey, a physician of osteopathic medicine, provided physician services to the patients of several clinics operated by at least two other local doctors. Despite earning significant income, Bailey accomplished his tax evasion by concealing his income and by preparing and filing false federal income tax returns for the years 2004 through 2011 reporting $0 in taxable income and $0 in tax due and owing to the Internal Revenue Service (IRS).
As charged in the indictment, Bailey accomplished his tax evasion by using a purported “trust” and “unincorporated business trust organization” (UBO) during calendar years 2004 through 2011 to conceal income he earned as a physician from the IRS. To further his evasion, Bailey opened a bank account in the name of the UBO. Bailey received checks from at least two physicians who operated clinics in San Diego County where Bailey provided physician services in exchange for compensation. Bailey directed that the checks be made payable to the name of the UBO. According to the indictment, Bailey deposited these checks into the UBO bank account. Bailey then transferred funds from the “UBO” bank account to pay for his own personal expenses and benefit. During Bailey’s court appearance today, Assistant U.S. Attorney Joseph J.M. Orabona, who is prosecuting the case, stated that Bailey failed to report more than $1.1 million in income he earned during the calendars years 2004 through 2011, resulting in an alleged tax loss of approximately $300,000.
The arraignment took place today before U.S. Magistrate Judge Barbara L. Major. Bailey entered a plea of not guilty to the charges of tax evasion. The Court set a bond in the amount of $40,000. A motion hearing and trial setting is scheduled for September 27, 2013, before U.S. District Judge Cathy A. Bencivengo.
DEFENDANTS Criminal Case No. 13CR3046-CAB William Richard Bailey SUMMARY OF CHARGESTitle 26, United States Code, Section 7201 B Tax Evasion
AGENCY
Maximum Penalties: 5 years of imprisonment and $250,000 fineInternal Revenue Service-Criminal Investigations
An indictment or complaint itself is not evidence that the defendant committed the crimes charged. The defendant is presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Lebanon Man Pleads Guilty to Unlawful Possession of ExplosivesRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Thomas Lee Stanton, 18, of Lebanon, Illinois, pled guilty in the United States District Court in East St. Louis to the charge of unlawfully possessing destructive devices. Stanton is scheduled to be sentenced on December 13, 2013. At that time, he faces maximum penalties of up to 10 years in prison, a $250,000 fine, and 3 years of supervised release.
In Court today Stanton admitted that on April 17, 2013, he possessed destructive devices including four “cricket” bombs, two Molotov cocktails, and other explosive making materials.
“As indicated in Court, Mr. Stanton’s plea was made without a recommended sentence. After a Pre-sentence Report is done, and all relevant factors are weighed, including the harms caused, the United States will make an appropriate recommendation to the Court as to Mr. Stanton’s sentence.” said United States Attorney Wigginton.
The case was investigated by the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Illinois State Police; St. Clair County Sheriff’s Department; O’Fallon Police Department; Lebanon Police Department; Illinois Secretary of State Police Bomb Squad; Scott Air Force Base Explosive Ordnance Disposal K-9 Unit; O’Fallon Township High School Security Officers; and the St. Clair County State’s Attorney’s Office. The case is being prosecuted by Assistant United States Attorneys Liam Coonan and Ranley R. Killian.
Knoxville Resident Charles Bush Sentenced to Serve 151 Months in Prison for Child PornographyRead the Press Release
KNOXVILLE, Tenn. – Charles Wesley Bush, 33, of Knoxville, Tenn., was sentenced on Aug. 20, 2013, by the Honorable Thomas A. Varlan, Chief U.S. District Court Judge, to serve 151 months in federal prison.
Bush was indicted in October 2012 and pleaded guilty in March 2013 to a four-count indictment charging him with distribution and possession of child pornography. Bush came to the attention of federal authorities through his use of the internet to distribute child pornography. A forensic examination of his computer found him to be in possession of 232 images and 299 video files of child pornography.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Frank M. Dale, Jr. and Melissa Kirby represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Kamiah Man Pleads Guilty to Assaulting Woman with A Dangerous WeaponRead the Press Release
COEUR D’ALENE – Andrew Tony Blackeagle, 32, of Kamiah, Idaho, pleaded guilty today in United States District Court to assault with a dangerous weapon, U.S. Attorney Wendy J. Olson announced. Blackeagle was indicted by a federal grand jury on February 20, 2013.
According to the plea agreement, Blackeagle admitted that on October 12, 2012, within the boundaries of the Nez Perce Indian Reservation, he intentionally assaulted a woman with a knife. During the incident, which was witnessed by others, Blackeagle hit and kicked the victim, and threatened to cut her. The victim sustained multiple injuries, including a laceration to her scalp.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set is set for November 5, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
The case was investigated by the Federal Bureau of Investigation and Nez Perce Tribal Police, with the assistance of the Lewis County Sheriff’s Office.
Justice Department Settles Fair Housing Lawsuit with Multi/Tech Engineering Services Inc.Read the Press Release
The Justice Department announced today that Multi/Tech Engineering Services Inc., an engineering firm based in Salem, Ore., has agreed to pay more than $60,000 to settle a lawsuit alleging that it had violated the Fair Housing Act by designing Gateway Village Apartments with steps and other features that made it inaccessible to people with disabilities.
“Steps, narrow doors and other accessibility barriers prevent people with disabilities from exercising the same rights to obtain housing of their choice that other people enjoy” said Acting Assistant General for the Civil Rights Division Jocelyn Samuels. “We will hold builders and designers accountable and those who fail to follow the law will face enforcement action.”
This settlement will assist in compensating victims of discrimination and in removing accessibility barriers at Gateway Village, a 275 unit apartment complex in Salem. In May 2013, the Justice Department and the Fair Housing Council of Oregon (FHCO) also reached a settlement with the developers of the property to resolve the rest of the lawsuit, filed in September 2011. The settlement must still be approved by the court.
Under the terms of the parties’ agreement, Multi/Tech will pay $32,000 to a settlement fund to compensate individuals with disabilities who were impacted by the accessibility violations. Multi/Tech will also contribute $21,000 to the corrective actions already being undertaken by the developer according to the prior settlement agreement to make Gateway Village accessible to people with disabilities. These corrective actions include removing steps from sidewalks, widening interior doorways, reducing threshold heights, replacing excessively sloped portions of sidewalks and installing properly sloped curb ramps to allow people with disabilities to access the sidewalks from the parking areas. In addition, Multi/Tech will pay $7,902.70 in damages to the FHCO, the plaintiff-intervenor, whose investigation revealed the accessibility violations.
“The right to accessible housing is a fundamental protection afforded by law,” said U.S. Attorney for the District of Oregon Amanda Marshall. “I am committed to working with the Fair Housing Council of Oregon, and our federal, state and local partners to ensure that those who design and construct housing units make them accessible to people with disabilities in compliance with the Fair Housing Act.”
The lawsuit arose as a result of a complaint filed by FHCO with the U.S. Department of Housing and Urban Development (HUD). After HUD investigated the complaint, it issued a charge of discrimination and referred the matter to the Justice Department.
“For more than two decades the law has required that newly-built multifamily housing provide equal access to people with disabilities,” said Bryan Greene, HUD’s Acting Assistant Secretary for Fair Housing and Equal Opportunity. “Throughout that time, HUD and the Department of Justice have educated builders, design professionals and others on those requirements, most recently through guidance issued this past April. Where those efforts fail, our agencies will gain compliance through enforcement of the law."
Individuals who are entitled to share in the settlement fund will be identified through a process established in the settlement. Those who believe they were subjected to unlawful discrimination at Gateway Village, either when they lived there or when they considered living there, should contact the Justice Department toll-free at 1-800-896-7743 mailbox # 9993, or e-mail the Justice Department at [email protected] .
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Among other things, the Fair Housing Act requires that newly constructed multifamily housing with four or more units contain certain accessibility features so that the housing is accessible to and usable by people with disabilities.
For more information about the Civil Rights Division and the laws it enforces please visit www.usdoj.gov/crt .
Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Line at 1-800-896-7743, e-mail the Justice Department at [email protected] , or contact HUD at 1-800-669-9777.
Jury Convicts KC Woman of Cocaine ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was convicted in federal court today of her role in a conspiracy that was responsible for distributing hundreds of kilograms of cocaine in Jackson County, Mo.
Tamiko Grandison, 41, of Kansas City, was found guilty of participating in a conspiracy to distribute cocaine in Jackson County between Jan. 1, 2004, and June 17, 2010. She was taken into custody immediately after the verdict was announced.
Evidence introduced during the trial indicated that Grandison was the conduit who made deliveries of cocaine to customers in the Kansas City area on behalf of her then-boyfriend, Jiles Johnson, formerly of Kansas City, Mo. Johnson, who testified at Grandison’s trial, is being prosecuted in a separate case in the Northern District of Georgia. The government alleges that tons of cocaine was smuggled across the Mexican border and distributed throughout the United States to Johnson and others.
Johnson brought cocaine to Kansas City in 30- and 50-gallon drums and broke it down into kilogram quantities in Grandison’s basement. Grandison stored multi-kilogram quantities of cocaine at her residence until it was delivered.
Grandison delivered hundreds of kilograms of cocaine to co-conspirators over the course of the conspiracy. She also picked up the money from these customers for Johnson, and helped him conceal the drug-trafficking conspiracy by laundering some of the proceeds.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about two hours before returning the guilty verdicts to U.S. District Judge DeanWhipple, ending a trial that began Monday, Aug. 19, 2013.
Under federal statutes, Grandison is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $4 million. 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 Charles E. Ambrose, Jr. It was investigated by the Kansas City, Mo., Police Department and the Drug Enforcement Administration.Jury Convicts KC Man of Illegally Possessing FirearmsRead the Press Release
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 being a felon in possession of firearms.
Jamie D. Jones, 50, of Kansas City, was found guilty of two counts of being a felon in possession of a firearm.
Evidence introduced during the trial indicated that Jones was in possession of a Jennings .380-caliber handgun on Nov. 10, 2010, for which he was originally indicted on Oct. 17, 2012. Jones sold the Jennings handgun for $150 to a confidential source who was working under the direction of police detectives.
Jones was also in possession of a Lorcin 9mm handgun on April 16, 2012, for which he was charged in a superseding indictment on May 22, 2013. When law enforcement officers executed a search warrant at Jones’s residence, they found the loaded Lorcin handgun inside a wall vent in Jones’s bedroom.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Jones has prior felony convictions for robbery and fraud.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about three hours before returning the guilty verdicts to U.S. Chief District Judge Fernando J. Gaitan, ending a trial that began Monday, Aug. 19, 2013.
Under federal statutes, Jones is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $500,000. 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 Special Assistant U.S. Attorneys Leena V. Ramana and Sarah A. Castle. It was investigated by the Kansas City, Mo., Police Department, the Independence, Mo., Police Department and Homeland Security Investigations.
Joscayne Denny Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 16, 2013, before Chief U.S. District Judge Dana L. Christensen, JOSCAYNE DENNY, a 33-year-old resident of Box Elder, was sentenced to a term of:
- Prison: 20 months
- Special Assessment: $200.00
- Supervised Release: 3 years
DENNY was sentenced in connection with his guilty plea to distribution of a controlled substance.
In an Offer of Proof filed by Assistant U.S. Attorney Danna R. Jackson, the government stated it would have proved at trial the following:
On March 30, 2012, DENNY knowingly gave two girls methamphetamine. Both girls smoked the methamphetamine out of a broken lightbulb. One girl was taken to the Northern Montana Hospital shortly after she ingested the methamphetamine. A toxicology report showed amphetamine was in her system.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that DENNY will likely serve all of the time imposed by the court. In the federal system, DENNY does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Guilty Plea in Long-running Investment SchemeRead the Press Release
DEFENDANT ADMITS HE PERSONALLY SOLICITED
OVER $2 MILLION WITH PHANTOM MINING ASSETSSan Diego, CA - United States Attorney Laura E. Duffy announced that Douglas Ellingson pleaded guilty today to participating in an investment fraud conspiracy that cheated victims from San Diego and elsewhere out of more than $2 million. Ellingson admitted that between April 2008 and September 2012, he conspired with co-defendant William Ison and others to fraudulently mislead investors about the nature and security of their investment, and induce victims into wiring money to one of several accounts under Ellingson’s control. Ellingson entered his plea to a wire fraud conspiracy before Magistrate Judge Bernard G. Skomal. He is scheduled to appear before U.S. District Court Judge Irma E. Gonzalez on October 28, 2013 for sentencing.
In entering his plea, Ellingson explained that he and Ison first conspired with James Pantazelos in early 2008 to fraudulently solicit investors by falsely promising that investments would be secured by valuable precious minerals obtained by Ison’s mining company, Olathe Mining Company (“OMC”). In fact, OMC had not begun mining operations, and its assets consisted of merely mining claims and extraction technology, not actual minerals. Pantazelos previously pleaded guilty in the Northern District of Illinois to one count of mail fraud arising from this scheme involving Ellingson and Ison. (United States v. Pantazelos, Case No. 11-cr-50078 (N.D. Ill.)). On February 15, 2013, Pantazelos was sentenced to 114 months in custody and ordered to pay over $3.3 million in restitution to victims
Ellingson further admitted that beginning in June 2008, he and Ison agreed to fraudulently solicit investments in OMC through Ellingson’s new business entity, Capital Advancement Systems (“CAS”). As with the Pantazelos scheme, Ellingson and Ison again fraudulently claimed that investments in CAS would be secured by OMC, although OMC had no liquid assets had not actually mined anything. Later, Ellingson and Ison expanded their falsehoods by fraudulently claiming to investors that funds would be backed by “guarantees” from Ison’s new company, Blue Diamond Excavation, Inc. (“BDE”). As Ellingson knew, however, BDE’s only assets were OMC’s non-liquid assets.
Later, Ellingson and Ison expanded their lies to potential investors by promising (1) that funds sent to CAS would never produce a loss, (2) that funds would be maintained in a bank account under Ellingson’s control, and (3) that funds would be used to secure loans for business deals, such that investor funds would never actually be placed at risk. In fact, Ellingson wired almost all of the funds directly to Ison, and was informed that Ison was sending 100% of the victim funds to an investment partner to be used in various business deals.
In order to promote Ison’s appearance of wealth to potential investors, Ellingson and Ison falsely claimed Ison was the head of a large non-profit foundation that gave over a “trillion dollars” to various humanitarian causes. They encouraged investors to hand over funds by promising that the profits would be used to support charitable causes.
Ultimately, the victims did not receive promised profits or a return of their original investments. In total, Ellingson personally obtained over $2 million from victims, almost all of which he wired directly to Ison.
United States Attorney Duffy stated that the prosecution of the wide-ranging conspiracy would continue. She thanked the Federal Bureau of Investigation and Internal Revenue Service - Criminal Investigation, which jointly investigated the matter. United States Attorney Duffy reminded the public to be wary of investment fraud scams that make promises that seem “too good to be true.” More information to help you avoid becoming the victim of an investment fraud scheme is located at www.stopfraud.gov/protect-securities.html.
DEFENDANT Case Number: 12CR4030-IEG Douglas Ellingson Age: 44 SUMMARY OF CHARGESCount 1: Title 18, United States Code, Section 371 (Conspiracy)
AGENCIES
Maximum penalties: 5 years of custody; $250,000 Fine, or twice the gross gain/gross loss resulting from the offenseFederal Bureau of Investigation
Internal Revenue Service - Criminal Investigation