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Monday 1 July 2013
Essex County, N.J., Man Convicted on Weapons ChargesRead the Press Release
NEWARK, N.J. – An Essex County, N.J., man, charged in connection with a year-long investigation by the FBI Safe Streets Task Force that led to the confiscation of 45 guns from the streets of Newark, East Orange and Irvington, was convicted on weapons charges, U.S. Attorney Paul J. Fishman announced today.
Randy Andrew, 36, of Irvington, N.J., was convicted by a federal jury of one count each of trafficking firearms and conspiracy to traffic firearms and three counts of possession of a firearm by a convicted felon after a one-week trial before U.S. District Judge William Walls in Newark federal court.According to documents filed in this case and the evidence at trial:
Andrew and seven others (all of whom have since pleaded guilty) were arrested in 2011 on charges of trafficking in firearms without a license. For more than one year the FBI Safe Streets Task Force led an operation to recover firearms in an effort to stem gun violence and take weapons off the streets of Newark and surrounding areas. Agents directed and supervised a “sting operation,” using a confidential informant to purchase firearms from illegal gun brokers and dealers. The operation yielded 45 illicit firearms, including several assault rifles, machine pistols, shotguns and semi-automatic handguns.
Andrew was selling firearms out of a laundromat in Irvington. On five separate occasions between May and July 2010, he met with the informant to discuss the purchase of assault weapons. On May 10, May 19 and June 9, 2010, Andrew sold firearms to the informant. On June 1 and July 12, 2010, he attempted to sell assault weapons to the informant, but his supplier could not provide the guns.
Andrew represented himself pro se after the first day of trial, assisted by defense counsel. The trafficking and conspiracy charges on which Andrew was convicted are punishable by a maximum potential penalty of five years in prison and the felon in possession charges are punishable by up to 10 years in prison. Sentencing is scheduled for Sept. 3, 2013.
U.S. Attorney Fishman credited the FBI special agents and local detectives and investigators from the FBI’s Safe Streets Task Force, which operates under the direction of FBI Special Agent in Charge Aaron T. Ford in Newark, with the investigation that led to the guilty verdict. The Safe Streets Task Force comprises the FBI, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the Essex County Corrections Department, and the Newark, East Orange and Jersey City Police Departments.The government is represented by Assistant U.S. Attorneys Adam N. Subervi and Amy D. Luria of the U.S. Attorney’s Office Criminal Division.
13-274Defense counsel: Paul Casteleiro Esq., Hoboken, N.J.
Discharge of A Firearm During Spotsylvania Robbery Results in A Ten Year SentenceRead the Press Release
RICHMOND, Va. – Travis Burley, 26, of Richmond, Va., was sentenced today to 120 months in prison, followed by two years of supervised release, for using, carrying, brandishing, and discharging a firearm during and in relation to a drug trafficking offense.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; and Carl Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Washington Field office, made the announcement after sentencing by United States District Judge John A. Gibney.
A jury found Burley guilty on April 25, 2013, after a two day trial. According to evidence at trial, on July 11, 2012, Burley met with a Spotsylvania-area man to purchase four ounces of high grade marijuana at the Spotsylvania Town Center Mall, near the Costco store. Upon arrival, Burley got into the passenger seat of the victim’s car, placed a loaded handgun to the victim’s head and demanded the drugs. A struggle ensued and the handgun discharged, hitting both the victim and the defendant.
The investigation was conducted by the Richmond Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Spotsylvania County Sheriff’s Office. Mr. MacBride and Special Agent Vasilko wish to acknowledge the significant assistance provided by the offices of Spotsylvania County Commonwealth’s Attorney, William F. Neely, and Spotsylvania County Sheriff, Roger L. Harris, during the federal phase of this investigation. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorneys Brian Hood and Erik S. Siebert prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Detroit Man Sentenced to More Than 3 Years in Prison on Federal Drug Possession ChargeRead the Press Release
HUNTINGTON, W.Va. – A Detroit drug dealer who stored firearms, illegal narcotics and cash at his Huntington residence in October 2011 was sentenced on July 1 to three years and one month in prison, announced U.S. Attorney Booth Goodwin. Dwjuan Strickland, also known as “Freak” and “Mitch,” 37, of Detroit, previously pleaded guilty in April to possession with intent to distribute heroin and crack cocaine. On October 14, 2011, members of the Huntington Violent Crime and Drug Task Force conducted a search of the defendant’s 24th Street residence in Huntington, which he shared at the time with convicted felon Lawanna D. Hamlin. During the execution of the search warrant, law enforcement seized items that included 9.52 grams of crack cocaine, .45 grams of heroin, three digital scales, two .40 caliber pistols, and approximately $577 cash.
Prior to executing a search warrant on the defendant’s residence, law enforcement agents conducted several controlled heroin buys from Strickland and Hamlin.
Hamlin, 34, of Huntington, was previously sentenced in July 2012 to 2½ years in federal prison for her role in a heroin distribution scheme led by Strickland.
The Huntington Violent Crime and Drug Task Force conducted the investigation. Assistant United States Attorney Gregory McVey handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Couple from Malaysia Sentenced for Importing IceRead the Press Release
On Thursday, June 27, 2013, Kalidhasdsan Magalingam and Kaali Chellathura were sentenced to
51 months incarceration for their part in importing 961.3 grams net weight of methamphetamine hydrochloride of 98% purity — ice. The penalty generally brings a mandatory 10 years of incarceration, but the defendants qualified for the “safety valve” because this was their first offense and they were merely couriers. They are married, both citizens of Malaysia. They traveled to Hong Kong, received the ice, which was hidden in special shoes and a bra, and attempted to carry it through the airport on September 13, 2012. They were stopped and searched after presenting their passports.The investigation was conducted by the Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Karon V. Johnson.
Charleston Man with More Than $20,000 Cash, Half-kilo of Cocaine Pleads Guilty to Federal Drug ChargeRead the Press Release
CHARLESTON, W.Va. – A Charleston man who possessed a total of more than $20,000 in cash and nearly a half-kilogram of cocaine inside of his residence entered a guilty plea today to a federal drug charge. Jason McGhee, 35, pleaded guilty to possession with intent to distribute cocaine. On April 24, 2013, a confidential informant working with the Metropolitan Drug Enforcement Network Team (MDENT) arranged to purchase cocaine from McGhee. The police informant later arrived at McGhee’s residence and gave the defendant $2400 in pre-recorded buy money to fulfill a previous drug debt. A short time later, McGhee handed the informant five ounces of suspected cocaine. Afterward, the informant submitted the suspected cocaine to law enforcement agents. The suspected cocaine was field tested by law enforcement and proved to be 146 grams of cocaine.
Following the controlled drug transaction between McGhee and the informant, police executed a search warrant on the defendant’s residence. During the search, officers found the $2400 in pre-recorded currency that was used during the controlled drug transaction, along with an additional $17,800 in cash, two sets of digital scales and approximately 499 grams of cocaine.
In total, McGhee is responsible for distributing a total of at least two kilograms but less than 3.5 kilograms of cocaine.
McGhee faces up to 20 years in prison and a $1 million fine when he is sentenced on October 16, 2013 by United States District Judge Thomas E. Johnston.
The investigation was conducted by MDENT and the Drug Enforcement Administration (DEA). Assistant United States Attorney Monica D. Coleman is in charge of the prosecution.
Cabool Man Pleads Guilty to Enticing a Minor for Illicit SexRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Cabool, Mo., man pleaded guilty in federal court today to enticing a 14-year-old girl to engage in illicit sex.
Scott Dwayne Baker, 45, of Cabool, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a Feb. 28, 2013 federal indictment.
By pleading guilty today, Baker admitted that he sent a series of sexually suggestive texts, including a sexually graphic photo, to the cell phone of a 14-year-old victim. The victim had received numerous text messages of a sexual nature from Baker. On Feb. 2, 2013 a Missouri State Highway Patrol trooper assumed the victim’s identity and began communicating with Baker via cell phone text messages.
On Feb. 3, 2013 the undercover officer continued a lengthy text message conversation with Baker during the Super Bowl. After sending sexually explicit messages and a pornographic image of himself to the victim’s cell phone, Baker began making arrangements to meet with the victim. Baker believed the victim would skip school and be at home alone on the following day, Feb. 4, 2013. Baker was asked to bring a Dr. Pepper and a candy bar for the child victim.
When he arrived at the victim’s home at about noon, bringing the Dr. Pepper and candy bar, he was arrested by officers of the Missouri State Highway Patrol.
Under federal statutes, Baker 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 $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Missouri State Highway Patrol, the Southwest Missouri Cyber Crimes Task Force and the FBI.
Project Safe Childhood
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."Bulgarian National Charged in Largest Identity Theft Ring of Its Time Extradited to Face Indictment in New JerseyRead the Press Release
NEWARK, N.J. – Aleksi Kolarov, 30, will appear in Newark federal court today after being extradited from Paraguay to face U.S. charges he participated in the Shadowcrew forum, an online marketplace for hacking and identity theft that was the largest of its kind when dismantled by the Department of Justice and the U.S. Secret Service in 2004, New Jersey U.S. Attorney Paul J. Fishman announced.
A Bulgarian national, Kolarov evaded capture until June 14, 2011, when Paraguayan law enforcement authorities arrested him at a hotel in Asunción, Paraguay. He was found in possession of hundreds of thousands of dollars in various currencies, counterfeit payment cards and electronic implements to re-encode cards. He has been incarcerated by Paraguayan authorities since that time relating to that conduct.
The U.S. indictment charges Kolarov with one count each of conspiracy, transferring false identification documents and offering access devices without authorization. He arrived in the United States on Friday, June 28, 2013, escorted by U.S. Marshals, and was held in federal custody over the weekend. He is scheduled to appear later today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
“Aleksi Kolorov is charged with conspiring in the most notorious online cybercrime marketplace of its time, selling the means to steal money and identities to other criminals,” U.S. Attorney Fishman said. “This extradition shows that hiding behind computers and borders does not deter us. It is vital that law enforcement work internationally to bring cybercriminals to justice, no matter how long it takes.”
“The arrest and extradition of Aleksi Kolarov to the United States demonstrates the outstanding investigative abilities and steadfast commitment of the Secret Service to protect our nation’s financial infrastructure from unlawful acts committed by cyber-criminals on our homeland,” said Special Agent in Charge James Mottola of the U.S. Secret Service, Newark Field Office. “The successful apprehension of suspects is due to the superior efforts our special agents and participating members of the electronic crimes task forces which include federal, state and local law enforcement agencies, private industry and academia.”
According to the indictment:
Shadowcrew.com was an illegal online marketplace that trafficked in at least 1.5 million stolen credit and bank card numbers and caused more than $4 million in losses to the institutions issuing the cards.
Kolarov, along with the other 18 individuals charged in the indictment, participated in the international conspiracy to operate the Shadowcrew site. As part of the organization, Kolarov served as a vendor, using the site to sell illicit merchandise and services to other members. At one time, Shadowcrew.com had approximately 4,000 members dedicated to facilitating malicious computer hacking and the dissemination of stolen credit card, debit card and bank account numbers and counterfeit identification documents, such as drivers’ licenses, passports and Social Security cards. The conspiracy to commit this activity, often referred to as “carding,” facilitated the use of account numbers and counterfeit identity documents to steal identities and defraud banks and retailers.
Of the 19 international participants charged in the indictment, only three remain at large.
If convicted, Kolarov faces a maximum potential penalty of five years in prison on the conspiracy count, 15 years in prison on the identification documents count and 10 years in prison on the access device count. Each count also carries a maximum $250,000 fine, or twice the gross amount of pecuniary gain or loss resulting from the offense.
U.S. Attorney Fishman credited the U.S. Secret Service, under the direction of Special Agent in Charge Mottola, with the investigation leading to the charges. He also noted the valuable contributions of the Computer Crimes and Intellectual Property Section and Office of International Affairs in the Department of Justice’s Criminal Division and thanked the U.S. Marshals Service for facilitating the extradition. U.S. Attorney Fishman also praised the Paraguayan authorities for their vital role.
The government is represented by Assistant U.S. Attorney Erez Liebermann, Deputy Chief of the U.S. Attorney’s Office Criminal Division.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-273
Kolarov Indictment
Buffalo Man Sentenced for Drug TraffickingRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that David Long, 32, of Buffalo, N.Y., who was convicted of conspiracy to possess with intent to distribute 500 grams or more of cocaine, was sentenced to eight years in prison and four years supervised release by U.S. District Judge Richard J. Arcara.
Assistant United States Attorney Mary Clare Kane, who handled the case, stated that the defendant was intercepted over New York State wiretaps, on numerous occasions, arranging to acquire and purchase cocaine from Wallace Peace and other defendants. Search warrants executed during the investigation resulted in the seizure of 17 firearms, more than five kilograms of cocaine powder and in excess of 200 grams of crack cocaine.
Long was arrested along with 30 other defendants in July 2008. To date, 25 have been convicted.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Region; Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Francis J. Christiano, Resident Agent in Charge; and Special Agents of the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.Blairsville Resident Admits Participating in Heroin Trafficking ConspiracyRead the Press Release
Johnstown, Pa. - A resident of Blairsville, Pa., pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Stacey Simms, 29, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from the spring of 2011 to May 15, 2012, Simms, along with co-defendants, conspired to distribute and possess with intent to distribute heroin.
Judge Gibson scheduled sentencing for Dec. 3, 2013, at 10:00 a.m. The law provides for a maximum total sentence of 20 years in prison and a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania State Police and the Indiana Police Department conducted the investigation that led to the prosecution of Simms. Other agencies participating in this investigation included the Pennsylvania Attorney General’s Office, the Cambria County Drug Task Force, the Cambria County Sheriff’s Department, the Cambria County District Attorney’s Office, the Indiana County Drug Task Force, and the Indiana County District Attorney’s Office.
Blackfoot Man Charged with Abusive Sexual Contact with A ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that a Blackfoot, South Dakota man has been indicted by a federal grand jury for Abusive Sexual Contact with a Child.
Ta-Sunka-hinz Thunder Hawk, a/k/a Hinzi Thunder Hawk, age 18, was indicted by a federal grand jury on June 5, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 26, 2013 and pled not guilty to the indictment.
The maximum penalty upon conviction is up to life in custody, a $250,000 fine, or both; at least 5 years and up to life of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to an alleged incident in Blackfoot where Thunder Hawk had sexual contact with a child under the age of 12. The charge is merely an accusation and Thunder Hawk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Thunder Hawk was released to a third party custodian pending trial. A trial date has not been set.
Birmingham Man Sentenced to Nearly 12 Years in Prison for Armed Pharmacy RobberiesRead the Press Release
Birmingham Man Sentenced to Nearly 12 Years in Prison for Armed Pharmacy Robberies
BIRMINGHAM – A federal judge today sentenced a Birmingham man to nearly 12 years in prison for armed robberies at two pharmacies in the Birmingham metro area, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
U.S. District Judge Abdul K. Kallon sentenced STERLING EDWARDS, 20, to four years and nine months in prison for the Oct. 13, 2011, armed robbery of Campbell’s Pharmacy on Veterans Memorial Drive in Adamsville, and the March 13, 2012, armed robbery of Helena Hometown Pharmacy on Shelby County 17 in Helena. Kallon sentenced Edwards to an additional seven years in prison for brandishing a gun during the Helena robbery. Brandishing a weapon during a crime of violence carries a mandatory seven-year prison sentence that must be served consecutively to any other sentence imposed for the crime. Edwards pleaded guilty to the crimes in February.
“This defendant, and co-defendants in this case, all endangered innocent people in their violent quest to steal prescription narcotics, which are the most abused substances in our country,” Vance said. “Violent criminals like this must be taken off our streets.”
“Violent criminals who use guns to threaten lives during robberies and other crimes can expect to be held accountable for their illegal acts,” Schwein said. “The FBI is committed to working with its law enforcement partners to ensure the safety of our communities.”
Edwards, his uncle, Willie Edwards, 39, also of Birmingham, and Anthony Young, 21, of Hueytown, were all charged in a November indictment. Sterling Edwards and Young were both charged in the Helena pharmacy robbery. Willie Edwards and Young were both charged in a July 30, 2011, armed robbery of Moore’s Pharmacy on Ensley Avenue in Birmingham.
Willie Edwards pleaded guilty to the Ensley pharmacy robbery and to brandishing a gun in that robbery. He was sentenced to 20 years and one month in prison. Young’s case has been continued.
According to court documents, Sterling Edwards entered Campbell’s Pharmacy in Adamsville on the morning of Oct. 13, 2011, along with his uncle. Both men pulled guns, demanded money and drugs and threatened to kill the four employees, including the pharmacist, if they did not comply.
In the Helena pharmacy robbery, Sterling Edwards entered the store on the morning of March 13, 2012, with Young, and both brandished weapons, according to court records. Sterling Edwards ordered the pharmacist to open the cash register and to get drugs containing the narcotic pain-killer, Oxycontin. The robbers ordered the pharmacy employees to lie on the floor and threatened to kill them if they got up, according to court documents.
The FBI and Birmingham Police Department investigated the case. Assistant U.S. Attorney Joseph P. Montminy and Robin B. Mark are prosecuting the case.
Birmingham Man Sentenced to Nearly 12 Years in Prison for Armed Pharmacy RobberiesRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Birmingham man to nearly 12 years in prison for armed robberies at two pharmacies in the Birmingham metro area, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
U.S. District Judge Abdul K. Kallon sentenced STERLING EDWARDS, 20, to four years and nine months in prison for the Oct. 13, 2011, armed robbery of Campbell’s Pharmacy on Veterans Memorial Drive in Adamsville, and the March 13, 2012, armed robbery of Helena Hometown Pharmacy on Shelby County 17 in Helena. Kallon sentenced Edwards to an additional seven years in prison for brandishing a gun during the Helena robbery. Brandishing a weapon during a crime of violence carries a mandatory seven-year prison sentence that must be served consecutively to any other sentence imposed for the crime. Edwards pleaded guilty to the crimes in February.
“This defendant, and co-defendants in this case, all endangered innocent people in their violent quest to steal prescription narcotics, which are the most abused substances in our country,” Vance said. “Violent criminals like this must be taken off our streets.”
“Violent criminals who use guns to threaten lives during robberies and other crimes can expect to be held accountable for their illegal acts,” Schwein said. “The FBI is committed to working with its law enforcement partners to ensure the safety of our communities.”
Edwards, his uncle, Willie Edwards, 39, also of Birmingham, and Anthony Young, 21, of Hueytown, were all charged in a November indictment. Sterling Edwards and Young were both charged in the Helena pharmacy robbery. Willie Edwards and Young were both charged in a July 30, 2011, armed robbery of Moore’s Pharmacy on Ensley Avenue in Birmingham.
Willie Edwards pleaded guilty to the Ensley pharmacy robbery and to brandishing a gun in that robbery. He was sentenced to 20 years and one month in prison. Young’s case has been continued.
According to court documents, Sterling Edwards entered Campbell’s Pharmacy in Adamsville on the morning of Oct. 13, 2011, along with his uncle. Both men pulled guns, demanded money and drugs and threatened to kill the four employees, including the pharmacist, if they did not comply.
In the Helena pharmacy robbery, Sterling Edwards entered the store on the morning of March 13, 2012, with Young, and both brandished weapons, according to court records. Sterling Edwards ordered the pharmacist to open the cash register and to get drugs containing the narcotic pain-killer, Oxycontin. The robbers ordered the pharmacy employees to lie on the floor and threatened to kill them if they got up, according to court documents.
The FBI and Birmingham Police Department investigated the case. Assistant U.S. Attorney Joseph P. Montminy and Robin B. Mark are prosecuting the case.
Annandale Accountant Convicted of Tax Fraud and Making False Statements to the GovernmentRead the Press Release
ALEXANDRIA, Va. – Mohammad T. Al-Suqi, 54, of Annandale, Va., was convicted today by a federal jury of nineteen counts of aiding the preparation of a false income tax return, two counts of filing his own false income tax returns, and one count of making false statements to federal agents.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after the verdict was accepted by United States District Judge James C. Cacheris.
Al-Suqi was indicted by a federal grand jury on April 25, 2013. He faces a maximum penalty of three years in prison on each of the tax counts and five years in prison on the false statements count when he is sentenced on October 4, 2013.
According to court records and evidence at trial, the defendant owned and operated the tax preparation businesses Ideal Accounting Solution and Mass Accounting and Tax Corp. in Falls Church, Va. For the tax years 2007 through 2010, the defendant prepared and filed, on behalf of his taxpayer clients, federal income tax returns that contained materially false and fraudulent information, including false itemized deductions on Schedule A and fraudulent education credits on Form 8863, all of which resulted in large federal income tax refunds for the taxpayers. For his part, the defendant received fees of between $100 and $250 per return and prepared thousands of federal income tax returns during the relevant time period.
As part of the government’s investigation, the defendant also prepared a fraudulent tax return in 2011 for an undercover IRS agent posing as a taxpayer. The episode, which was recorded by the undercover agent and presented to the jury at trial, showed the defendant falsifying expenses and deductions in order to produce an income tax refund and indicating that his success as a tax preparer was associated with his ability to manufacture large refunds for his clients.
The defendant also included false and fraudulent expenses and credits on his own 2008 and 2009 federal income tax returns. In 2013, after the IRS revoked his ability to file electronic tax returns, the defendant continued to prepare and electronically file tax returns using an electronic filing number assigned to his wife, and the defendant lied to IRS agents when he was questioned about the activities.
This case was investigated by IRS Criminal Investigation. Assistant United States Attorneys Jasmine Yoon, Charles Connolly, and Paul Nathanson are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.10th Street Gang Member Sentenced on RICO ChargeRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Michael Hernandez, 24, of Buffalo, N.Y., who was convicted of Racketeering Influenced Corrupt Organizations (RICO) Conspiracy, was sentenced to 57 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that from 2000 to 2010, the defendant was a member of the 10th Street Gang, a criminal enterprise engaged in racketeering activity. As a part of his involvement in the 10th Street Gang, Hernandez arranged the sale of a .38 caliber handgun and an AR-15 semi-automatic rifle between 10th Street Gang members. In addition, along with other members and associates of the gang, Hernandez conspired to distribute cocaine, crack cocaine, and other controlled substances on the West Side of Buffalo, New York as a part of the affairs of the 10th Street Gang.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Richard M. Frankel, Acting Special Agent in Charge, the New York State Police, under the direction of Major Michael Cerretto, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Saturday 29 June 2013
Patient in Sexual Predator Unit Charged with Producing Child PornRead the Press Release
WICHITA, KAN. – A registered sex offender has been charged with producing child pornography while he was committed to a sexual predator unit at Larned State Hospital, U.S. Attorney Barry Grissom said today.
Christopher M. Case, 33, has been charged with two counts of producing child pornography and two counts of sending obscene material to a child. The indictment makes the following allegations:
– From Dec. 1, 2011, to Dec. 28, 2011, Case enticed a 15-year-old child to engage in a sexual act for the purpose of making a video to be transmitted on the Internet.
– From Dec. 24, 2011, to Jan. 23, 2012, Case enticed a 13-year-old child to engage in a sexual act for the purpose of making a video to be transmitted on the Internet.
– On Dec. 29, 2011, Case sent a video of himself masturbating to the 13-year-old victim.
– On Dec. 31, 2011, Case sent a video of himself masturbating to the 13-year-old victim.At the time of the crimes, Case was a registered sex offender. He was convicted in Saline County, Kan., in May 2003 on a charge of attempted aggravated indecent solicitation of a child.
If convicted on the federal charges, he faces a penalty of not less than 25 years in federal prison and a fine up to $250,000 on each of the charges of producing child pornography; and a penalty of not less than 10 years and a fine up to $250,000 on each of the charges of sending obscene material to a child. The Wichita Police Department’s Internet Crimes Against Children Task Force and the Kansas Attorney General’s office investigated. Assistant U.S. Attorney Jason Hart and Steve Karrer of the Kansas Attorney General’s Office are prosecuting.
OTHER INDICTMENTS
Rigoberto Avalos-Mendez, 26, Kennewick, Wash., is charged with possession with intent to distribute approximately three kilograms of cocaine. The crime is alleged to have occurred May 31, 2013, in Thomas County, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $2 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Vicente Trevino-Hernandez, 46, a citizen of Mexico, is charged unlawfully re-entering the United States after being deported. He was found June 6, 2013, in Arkansas City, Kan.
If convicted, he faces a maximum penalty of two years in federal prison without parole and a fine up to $250,000. ICE’s Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Jonathan Valdez, 25, Garden City, Kan., is charged with one count of possession with intent to distribute cocaine and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred March 16, 2013, in Finney County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $1 million on the drug charge; and a penalty of not less than five years and a fine up to $250,000 on the firearm charge. The Finney County Sheriff’s Office investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Gerald Beasley, 58, Andover, Kan., is charged with unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred June 12, 2013, in Wichita, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Agencies taking part in the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Wichita Police Department, the Sedgwick County Sheriff’s Office, the Internal Revenue Service Task Force and the Sedgwick County District Attorney’s Office. Assistant U.S. Attorney Debra Barnett is prosecuting.
Noel Soto-Arrieta, a citizen of Mexico, is charged with three counts of counterfeiting false documents, five counts of aggravated identity theft, two counts of counterfeiting a Social Security card, and one count of unlawful re-entry after deportation. He was found June 6, 2012, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 15 years in federal prison without parole and a fine up to $250,000 on each count of counterfeiting false documents; a mandatory two years to be served consecutively to other sentences and a fine up to $250,000 on each count of aggravated identity theft; a maximum penalty of five years and a fine up to $250,000 on each count of counterfeiting a Social Security number; and a maximum penalty of two years and a fine up to $250,000 on the re-entry charge. ICE’s Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Raymond Hernandez-Cordova, a citizen of Mexico, is charged with one count of possession of false documents, four counts of aggravated identity theft; one count of making a false statement on an I-9 Employment Eligibility Verification form; one count of misusing a Social Security number; one count of producing a false document; and one count of unlawfully re-entering the United States after being deported. He was found June 10, 2013, in Wichita, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison without parole and a fine up to $250,000 on the charge of possessing false documents; a mandatory two years to run consecutively to other sentences on other counts and a fine up to $250,000 on each count of aggravated identity theft; a maximum penalty of five years and a fine up to $250,000 on the count of making a false statement on an I-9 form and the same penalty on the count of misusing a Social Security number; a maximum penalty of 15 years and a fine up to $250,000 on the charge of producing false identification documents; and a maximum penalty of two years and a fine up to $250,000 on the re-entry charge. The Kansas Department of Revenue investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Josephina Barrasa-Chairez, 39, a citizen of Mexico, is charged with possessing false documents. The crime is alleged to have occurred June 11, 2013, in Lyon County, Kan.
If convicted, she faces a maximum penalty of 15 years in federal prison and a fine up to $250,000. ICE’s Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting. The Social Security Administration - OIG investigated.
Lester Ray Nichols, 72, Leavenworth, Kan., is charged with failing to register as required by the Sex Offender Registration and Notification Act. The crime is alleged to have occurred Nov. 9, 2012.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Juan Carlos Frayre, 25, Wichita, Kan., is charged with two counts of unlawful possession of a firearm by a user of controlled substances, two counts of unlawful possession of a firearm after being convicted of a misdemeanor crime of domestic violence, two counts of unlawful possession of ammunition by a user of controlled substances, two counts of unlawful possession of ammunition after being convicted of a misdemeanor crime of domestic violence, and two counts of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred in April and May 2013, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000 on each of eight counts; and a penalty of not less than five years and not more than 40 years and a fine up to $5 million on each of two counts. The Wichita Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Steven J. Denson, 27, is charged with one count of unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred Feb. 27, 2013, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Friday 28 June 2013
Wounded Knee Man Charged with Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wounded Knee, South Dakota man has been indicted by a federal grand jury for Sexual Abuse of a Minor.
Berdell Shot, age 29, was indicted by a federal grand jury on September 19, 2012. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 25, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 15 years’ in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Shot is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Shot was remanded to the custody of the U.S. Marshals pending trial. A trial date has been set for August 13, 2013.
West Point Resident Pleads Guilty to Assisting Individuals in Filing False Tax ReturnsRead the Press Release
SALT LAKE CITY – Gina D. Salayandia, age 45, of West Point, Utah, pleaded guilty this week in federal court to assisting as many as 15 individuals in filing false federal tax returns using exemptions and credits they were not legally entitled to claim. The individual returns were filed for the years 2006 through 2011.
Salayandia has been a self-employed tax return preparer since at least 1999. Her business is based in Hooper, Utah.
Salayandia, who waived indictment, was charged with one count of aiding and assisting in the filing of false tax returns in a Felony Information filed in April. She pleaded guilty to the charge Wednesday before U.S. Magistrate Judge Dustin Pead.
As a part of the plea agreement, Salayandia admitted that on about Jan. 21, 2011, an individual identified as M.M. in court documents approached her to prepare her 2010 tax returns. Salayandia admitted that while she was preparing M.M.’s tax return, she informed her that her tax situation would improve through exemptions and credits if she claimed certain additional dependents on her tax return. Salayandia admitted she knew that M.M. was not legally entitled to claim additional dependents. She also admitted knowing that M. M. was not entitled to claim the child tax credit for additional dependents because they were not U.S. citizens, U.S. nationals, or residents of the United States. She admitted knowing that she assisted in preparing falsely stated tax exemptions and credits on the tax form knowing it was not legal under Internal Revenue code.
She stipulated in the plea agreement that the total tax loss in scheme is $211,600.
Sentencing in the case is set for Sept. 4, 2013, before U.S. District Judge Clark Waddoups. The potential maximum penalty for the conviction is three years in prison, a fine of $250,000, and a one-year term of supervised release.
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Jonathan Parahams, Jr., 35, of South Bend, Indiana, pled guilty before Magistrate Judge Christopher A Nuechterlein to the felony offense of conspiracy to defraud the United States Department of the Treasury. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing set for 10/3/2013 before District Judge Jon E DeGuilio. This charge was filed as a result of an investigation by the Internal Revenue Service.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Jaleen McGee, 20, of South Bend, Indiana, a defendant of the case US. v Shaw, et al., was sentenced by Judge Robert L. Miller, Jr to 87 months imprisonment and 4 years of supervised release after pleading guilty to the felony offense of racketeering.According to documents filed, McGee was a member of the “Cash Out Boyz,” a gang in South Bend, Indiana. The gang was involved in a pattern of criminal activity including drug trafficking and use of firearms, robberies and intimidation.McGee was arrested carrying marijuana for distribution and was involved in the shooting and robbery of a fellow Cash Out Boyz member.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the South Bend Police Department. This case was prosecuted by Assistant United States Attorney Donald Schmid.
Wilbur Crawford, 21, of South Bend, Indiana, a defendant in the case US v Shaw, et al., was sentenced by District Judge Robert L. Miller, Jr to 79 months imprisonment and 4 years of supervised release after pleading guilty to the felony offense of carrying a firearm during a drug trafficking crime/crime of violence.According to documents filed by the government in this case, Crawford was involved in a home invasion in which a man was shot and a pound of marijuana was stolen. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Omar Lewis, 34, of Michigan City, Indiana, was sentenced by District Judge Jon E. DeGuilio to 151 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of knowingly and intentionally possessing with the intent to distribute a mixture or substance containing a detectable amount of cocaine base (“Crack”).According to documents filed by the government in this case, Lewis sold crack cocaine in the LaPorte area in 2011.This case was the result of an investigation by the Drug Enforcement Agency.This case was prosecuted by Assistant United States Attorney William Grimmer.
Harry Kiste, 56, of Elkhart, Indiana, was sentenced by District Judge Jon E. DeGuilio to 5 years supervised probation, 10 months location monitoring on home detention and a $500 fine after pleading guilty to the felony offense of failing to register as a sex offender.According to documents filed by the government in this case, Kiste was convicted for attempted criminal sexual conduct in 1996.This case was the result of an investigation by the United States Marshal’s Service.This case was prosecuted by Assistant United States Attorney John Maciejczyk.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Michael Delgado, 21, of Hammond, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of possession of a firearm by a convicted felon.Sentencing has been set for 10/3/13.This charge was filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force and the Lake County Police Department.This case is being prosecuted by Assistant United States Attorney Nicholas Padilla.
Matthew Jasek, 30, of Schererville, Indiana, pled guilty before Magistrate Judge Paul Cherry to the felony offense of possession of child pornography.Magistrate Cherry is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
Nalon Edmonds, 21, of Gary, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of being an unlawful user of marijuana in possession of a firearm.Sentencing has been set for 9/24/13.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Indiana University Northwest Police Department.This case is being prosecuted by Assistant United States Attorney Nicholas Padilla.
Deanbra Martin, 23, of Gary, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of possession of a firearm and ammunition by a convicted felon.Sentencing has been set for 9/17/13.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Michigan City Police Department.This case is being prosecuted by Assistant United States Attorney Joshua Kolar.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Joseph Gilman, 23, and Derek Muilenburg, 25, of Demotte, Indiana and defendants in the case US v Humphrey et al., were sentenced by Senior District Judge Rudy Lozano.Both Gilman and Muilenburg were sentenced to 46 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of conspiracy to possess with the intent to distribute heroin. This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Nicole Smith, 31, of Hammond, Indiana, was sentenced by Magistrate Judge Andrew Rodovich to 1 year of probation after pleading guilty to the felony misdemeanor of theft of government property.According to documents filed by the government in this case, Smith admitted that during the 2008-2009 academic school year at Purdue University-Calumet she submitted an application to receive federal funds for student aid and failed to report additional income received from Action for Children, which provides financial assistance for childcare for families living in the state of Illinois.This case was the result of an investigation by the United States Postal Service-Office of the Inspector General.This case was prosecuted by Assistant United States Attorney Toi Houston.
Ronald Slusser, 49, and Joseph Kumstar, 42, both of Crown Point, Indiana, defendants in the case US v Kabella et al., were sentenced by Senior District Judge James Moody on June 27, 2013.Slusser was sentenced to 70 months imprisonment and 1year of supervised release after pleading guilty to the felony offenses of conspiracy to provide false information to a Federal Firearms Licensee, conspiracy to defraud the FDA, making false statements on a tax return and laundering/structuring of monetary instruments.Slusser was also ordered to pay $198,817.71 in restitution to the IRS for tax years 2005-2010.Kumstar was sentenced to 57 months imprisonment and 1 year of supervised release after pleading guilty to the felony offenses of conspiracy to provide false information to a Federal Firearms Licensee, conspiracy to defraud the FDA and making false statements on a tax return.Kumstar was ordered to pay $22,612.62 in restitution to the IRS for tax years 2005-2009.According to documents filed by the government in this case, Slusser, while a patrol officer with the Lake County Sheriff’s Department, and Kumstar, while the Deputy Chief for the Lake County Sheriffs Department, conspired to obtain restricted firearms and defraud the FDA in order to retain restricted laser sites.The conspiracy involved the trafficking of between 25-99 firearms.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Food and Drug Administration, the Internal Revenue Service and the Department of Defense Criminal Investigation Service.This case was prosecuted by Assistant United States Attorney Philip Benson.
Nancy Stofko, 37, of Crown Point, Indiana, was sentenced by Senior District Judge James Moody to 21 months imprisonment, 3 years of supervised release and restitution to the victim in the amount of $572,173.09 after pleading guilty to the felony offense of wire fraud.According to documents filed by the government in this case, Stofko admitted that while employed as an office manager at the Complete Valve Repair Services, Inc. she wrote checks and used the company credit cards to make hundreds of unauthorized purchases for her personal use and benefit. This case was the result of an investigation by the United States Secret Service.This case was prosecuted by Assistant United States Attorney Randall Stewart.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS:
Joseph Brewington, 24, of Fort Wayne, Indiana, was sentenced by District Judge Theresa L. Springmann to 36 months imprisonment and 2 years supervised release after pleading guilty to the felony offense of knowingly maintaining a premise for the purpose of distributing marijuana.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Anthony Gellar.
Jermorris Sewell, 30, of Fort Wayne, Indiana, was sentenced by District Judge Theresa L. Springmann to serve 110 months imprisonment and 8 years supervised release after pleading guilty to the felony offense of knowingly or intentionally conspiring to distribute and possess with the intent to distribute controlled substances.This case was the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service.This case was prosecuted by Assistant United States Attorney Anthony Gellar
United States and Tennessee Reach Agreement with King Pharmaceuticals LLC to Resolve Allegations of Clean Air Act ViolationsRead the Press Release
King Pharmaceuticals LLC (King) will pay $2.2 million and take measures to comply with the Clean Air Act to resolve alleged violations of the Clean Air Act (CAA) at its pharmaceutical manufacturing facility located in Bristol, Tenn., announced the Department of Justice, the U.S. Environmental Protection Agency (EPA), and the Tennessee Department of Environment and Conservation (TDEC).
From the $2.2 million civil penalty, $1.1 million will be paid to the United States and $1.1 million will be paid to TDEC. From TDEC’s $1.1 million penalty, $650,000 will be applied to a TDEC state project for homeowners. The settlement also requires the facility to demonstrate compliance with CAA National Emission Standards for Pharmaceuticals Production (PharmaMACT regulations) and to apply for a Title V permit. The PharmaMACT regulations impose “Maximum Achievable Control Technology” (MACT) standards, which are industry-specific measures that must be implemented to control hazardous air pollutants in order to prevent harm to human health or the environment.
The TDEC state project calls for implementation of a program dedicated to providing financial assistance to low-to-moderate income homeowners in making improvements to residential housing focused on weatherization, insulation and energy efficiency. This project will focus on the reduction of energy usage and decreasing emissions associated with the generation of electricity or use of fossil fuels in home heating. TDEC plans to use existing local programs in the Bristol area to identify and channel assistance to eligible homeowners.“This settlement will protect public health and the environment by requiring additional hazardous air pollution controls at the pharmaceutical facility in Bristol,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “This significant civil penalty should send a strong signal to the pharmaceutical industry regarding our commitment to enforce PharmaMACT.”
“Upholding the public health benefits of the Clean Air Act is a critical responsibility of EPA,” said Beverly H. Banister, Acting Deputy Regional Administrator of EPA’s Southeastern office. “This settlement will result in better management practices that will ultimately lead to greater protection of public health and the environment for the citizens of Bristol.”
“The Tennessee Department of Environment and Conservation is pleased the proposed settlement could be reached in this litigation to address air emissions and permitting requirements, and that the facility will move forward to meet those requirements,” said TDEC Commissioner Bob Martineau. “Additionally, the state project included in the settlement will promote emission reductions by reducing the energy needs of low-income residents in the area.”
King began pharmaceutical manufacturing operations at the Bristol facility in 1993. King was acquired by Pfizer Inc. in 2011, becoming a wholly owned subsidiary of Pfizer. On May 29, 2013, UPM Pharmaceuticals announced that it will acquire the Bristol facility. The sale of the facility will not affect the injunctive relief required by the settlement. The alleged violations were discovered during a May 2006 inspection and subsequent investigation by EPA and TDEC. The United States and the state of Tennessee jointly brought the complaint.
The Department of Justice filed the complaint and lodged the consent decree contemporaneously on behalf of EPA in the U.S. District Court for the Eastern District of Tennessee today. Notice of the lodging of the consent decree will appear in the Federal Register allowing for a 30-day public comment period before the consent decree can be entered by the court as a final judgment. It is available on the Justice Department website at www.usdoj.gov/enrd/Consent_Decrees.html.
United States Reaches Agreement with Philadelphia Food Warehouse Accused of Holding Food in Filthy ConditionsRead the Press Release
Since the United States of America’s filing of a civil Complaint on May 29, 2013, against Philadelphia food warehouse New Rich City Trading Corporation, its president and owner, Ms. Xiaoping Sun, and its manager, Mr. Si Yan Chuen, the parties have entered into a Consent Decree to resolve allegations that the defendants held food under insanitary conditions, in violation of the Food Drug and Cosmetic Act. United States Attorney Zane David Memeger announced today that the resolution was accepted by the United States District Court.
The Complaint alleged that United States Food and Drug Administration (“FDA”) inspections of the facility established that food stored by the defendants was adulterated because the food had been held under insanitary conditions whereby it may have become contaminated with filth. The insanitary conditions and filth included the widespread presence of animals such as rodents, birds, cats, and dogs, as well as the animals’ feces and urine, throughout the facility, including on and around articles of food. The Food Drug and Cosmetic Act prohibits companies and individuals from causing articles of food to become “adulterated” while held for sale after shipment of one or more of their components in interstate commerce.
The Consent Decree resolves the allegations in the Complaint, and requires defendants to:
- Immediately implement a sanitation control program developed by an expert, which will be subject to FDA approval.
- Recall and destroy adulterated food.
- Undergo periodic audit inspections by an independent auditor who shall report findings to the FDA.
The Consent Decree prohibits defendants from committing future violations of the Act. Any future violations could result in a shutdown of the facility and/or monetary penalties.
“This consent decree advances the Department of Justice’s and the FDA’s goal of ensuring the safety and integrity of our food supplies,” said United States Attorney Zane David Memeger. “We are pleased to have reached a resolution with the defendants that calls for prompt corrective measures, as well as the implementation of forward-looking procedures designed to ensure future compliance.”
This case was handled by Assistant United States Attorney Stacey L. B. Smith, together with David Sullivan, Trial Attorney from the United States Department of Justice, Consumer Protection Branch. The matter was investigated by the United States Food and Drug Administration, with legal assistance provided by Scott Kaplan, FDA Associate Chief CounselClick here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Tucson Man Found Guilty in Real Estate Investment Fraud SchemeRead the Press Release
TUCSON, Ariz. – Dino Sisneros, 42, of Tucson, Ariz., after a trial of thirteen days, was found guilty as charged by a federal jury on June 25, 2013. The charges against the defendant included three counts of wire fraud and two counts of transactional money laundering greater than $10,000. The case was tried before U.S. District Judge Cindy K. Jorgenson who will sentence Sisneros on Sept. 5, 2013.
The evidence presented at trial demonstrated that Sisneros orchestrated a real estate investment fraud scheme between 2006 – 2008 during which Sisneros misled investors by promising them high rates of return in exchange for their money which he said would be used to invest in real estate. However, instead of investing in real estate, he used large portions of his victims’ money for his own personal use, including paying for a ski trip to Colorado; paying a $7,900 hotel bill in Santa Monica, Calif.; car payments for a Cadillac Escalade, Cadillac CTS, two Nissan 350-Z’s, a Nissan Altima, and a Ford Expedition. The evidence further demonstrated that Sisneros used victim commingled funds toward his own rent payments so he could live in a multimillion dollar, 4-story home with an elevator. Sisneros received more than $900,000 from his victims but failed to pay his victims in return for their investments as he had promised.
A conviction for each count of wire fraud carries a maximum penalty of 20 years, a $250,000 fine or both. A conviction for each count of transactional money laundering greater than $10,000 carries a maximum penalty of 10 years, a $250,000 fine or both.
The investigation in this case was conducted by the Internal Revenue Service, Criminal Investigation. The prosecution was handled by Jonathan Granoff and Cory Picton, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-12-0174-TUC-CKJ(CRP)
RELEASE NUMBER: 2013-049_SisnerosFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Trustee Pleads Guilty in Federal Court to Tax EvasionRead the Press Release
Agrees to Pay More Than $200,000 in Restitution
LUBBOCK, Texas — Randy Lynn White appeared in federal court in Lubbock, Texas, today, before U.S. District Judge Sam R. Cummings, and pleaded guilty to an Information charging one count of tax evasion, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. He faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. According to the terms of the plea agreement filed in the case, White agrees to pay the amount of the tax loss, $211,165, in restitution. He will remain on personal recognizance bond; a sentencing date was not set.
According to the factual resume filed in the case, White admits that he intentionally and willfully did not file required tax returns for 2007, 2008 and 2009 in order to evade the payment of taxes due and owing to the U.S. White agrees that as a result of this criminal conduct, the tax loss to the U.S. for those years is $211,165.
White, according to the factual resume, was the sole trustee of the Frank F. McMordie Jr Family Trust, f/b/o Frank F. McMordie III (the “Trust”). According to the factual resume, White admits that he derived substantial benefits and income from the Trust, both in administration fees from the Trust paid to him, and in monies he took from the Trust for his personal use. White had absolute control over the Trust’s assets, which consisted primarily of a large ranch in the Texas Panhandle that produced mineral interests. White paid himself excessive administrative fees and spent most of the Trust’s remaining money on extravagant personal expenditures, such as making his personal house payments, and buying motorcycles, diamond and gold jewelry and cars.
The factual resume goes on to state that White attempted to conceal his extravagant expenditures by paying a relatively small amount of the Trust’s income to the Trust’s beneficiary, Frank F. McMordie III, who resided in Mexico. White also admits that as part of his scheme to evade taxes, he disguised many of the funds that he diverted from the Trust’s bank account to his personal use by placing false business notations on the checks, falsely claiming that the expenditures were for business purposes. These checks falsely indicated that he was using the funds to operate what he designated as the “south” ranch. He falsely indicated that he was using the money for ranch operating expenses, such as cattle vaccines, loading chutes, cattle guards, trailers for the south ranch, fencing, and south ranch payroll, when, in fact, the Trust did not operate any ranch whatsoever.
The case is being investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Paulina Jacobo is in charge of the prosecution.
Three York City Men Indicted for Drug TraffickingRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced that a federal grand jury in Harrisburg return an indictment Wednesday charging three men with drug trafficking in York City.
According to United States Attorney Peter J. Smith, the indictment resulted from a two-year investigation by the Pennsylvania State Police and the York County Drug Task Force, conducted with the assistance of the Federal Bureau of Investigation. In that investigation, hundreds of purchases of heroin, cocaine, and crack cocaine were made from dozens of individuals some of whom were affiliated with the Latin Kings street gang. That local investigation resulted in the arrest of dozens of individuals in a sweep that began on February 6, 2013, in York County. The present indictments arose from this investigation.
The United States Attorney’s Office has indicted the following individuals for drug trafficking: Hector Rengifo, age 40; Carlos Ortaga, age unknown; Jose Cartagena, Age 35; all of York.
Previously, a grand jury indicted eight individuals affiliated with the Latin Kings for their role in the larger drug trafficking conspiracy. Those individuals include: August Ranalli, age 31; Marcus Garcia, age 26; David Ramsey, age 31; Antonio Navaro-Garcia, age 21; Brandon Jones, age 24; Michael Enriquez, age 28; Daniel Pacheco-Morales, age 41; and Carlos Martinez-Villalongo, age 36. All of the defendants are from York, Pennsylvania.
Prosecution is assigned to Assistant United States Attorney Michael A. Consiglio and Special Assistant United States Attorney David Sunday from the York County District Attorney’s Office.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In these particular cases, the maximum penalty under the federal statute is 20 years imprisonment for the defendants and a term of supervised release following imprisonment and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
* * * *Sterling Business Owner Sentenced for Claiming to Be Minority, Service-Disabled Veteran Operated BusinessRead the Press Release
BOSTON – A Sterling, Mass. man was sentenced yesterday in United States District Court in Worcester for conspiring to defraud the Small Business Administration and other government contractors by falsely representing that his business was a minority and service-disabled veteran-owned and operated business.
Tyrone Jones, 48, was sentenced by U.S. District Judge Timothy S. Hillman to one year and one day in prison, to be followed by two years of supervised release. Jones was also ordered to forfeit $399,000. In August 2012, Jones pleaded guilty to conspiracy to commit wire fraud.
Jones and his co-conspirators submitted false statements to the Small Business Administration and other government agencies, in order to get federal government contract awards that were set aside for or preferentially awarded to disadvantaged minority and service-disabled veteran-owned and operated businesses. The submissions falsely represented that their company was owned and managed by a minority and service-disabled veteran who purportedly managed the daily operations of the business
“We take very seriously the abuse of a program that is designed to give hope and opportunity to service-disabled veterans by giving them the chance to own and operate their own businesses and to favorably compete for government contracts,” said U.S. Attorney Carmen M. Ortiz. “The fraud here aimed at usurping benefits that are intended to assist service-disabled veterans and to honor their service to our country.”
"Investigating SDVOSB program fraud is one of VA OIG's priorities because this crime deprives eligible disabled veteran-owned small businesses from receiving financial opportunities intended by this set-aside program. The VA OIG, along with our law enforcement partners, will continue this fight against SDVOSB fraud on behalf of our Nation's heroes,” said George Opfer, Inspector General for the Department of Veterans Affairs.
“These kinds of lies cause real harm to Federal programs and procurement,” said U.S. General Services Administration Inspector General Brian D. Miller.
“Federal contracts should never be awarded to persons who commit fraud or claim eligibility for contracts set-aside for our nation’s service-disabled veterans,” said Inspector General Peggy E. Gustafson of the Small Business Administration. “I want to thank the U.S. Attorney’s Office and our law enforcement partners for their commitment to seek justice on behalf of the American taxpayer.”
U.S. Attorney Ortiz; Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; Luis A. Hernandez, Special Agent in Charge of the U.S. General Services Administration, Office of Inspector General, Office of Investigations; Michael D. Conner, Special Agent in Charge of the U.S. Army Criminal Investigation Command, Hartford Fraud Resident Agency; Inspector General Peggy E. Gustafson of the U.S. Small Business Administration, Office of the Inspector General; and Robert L. Panella, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, New York Regional Office, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Sara Miron Bloom of Ortiz’s office.
Statement of Attorney General Eric Holder <br /> on the Implementation of the Supreme Court’s Decision<br /> in United States v. WindsorRead the Press Release
Attorney General Eric Holder today issued the following statement regarding the United States Office of Personnel Management (OPM) guidance to Federal agencies. On June 26, 2013, the Supreme Court issued a landmark decision in United States v. Windsor, holding Section 3 of the Defense of Marriage Act, known as DOMA, unconstitutional. As a result of this decision, the Federal government will now be able to extend benefits to Federal employees and annuitants who have legally married a spouse of the same sex.
“Today’s announcement represents a historic step toward equality for all American families. The Supreme Court ruled this week that Americans in same-sex marriages are entitled to equal protection and equal treatment under the law. By extending health insurance and other important benefits to federal employees and their families, regardless of whether they are in same-sex or opposite-sex marriages, the Obama Administration is making real the promise of this important decision.
“These initial changes in federal benefits will make a meaningful, positive difference in the lives of many. But this is only the beginning. As the President directed, the Department of Justice will continue to coordinate with other federal agencies to implement this ruling as swiftly and smoothly as possible. I look forward to sharing additional information as it becomes available. We will never stop fighting to ensure equality, opportunity, and – above all – justice for everyone in this country.”
St. Paul Felon Indicted for Possessing Nine-millimeter Pistol, Distributing Crack CocaineRead the Press Release
MINNEAPOLIS—A federal indictment unsealed yesterday charges a 25-year-old felon from St. Paul with possessing several firearms as well as distributing crack cocaine. The indictment, which was filed on June 18, 2013, charges Paris Cedrell Neal with two counts of being a felon in possession of a firearm, one count of distribution of crack cocaine, and one count of using and carrying firearms during and in relation to a drug-trafficking crime. The indictment was unsealed following Neal’s initial appearance in federal court.
The indictment alleges that on December 4, 2012, Neal distributed crack cocaine while in possession of several firearms, including a 7.65-millimeter, semi-automatic pistol; a 10.35-millimeter revolver with no serial number; a .44-caliber, semi-automatic rifle; and a .22-caliber, semi-automatic rifle. In addition, the indictment alleges that on November 29, 2012, Neal possessed a nine-millimeter, semi-automatic pistol.
Because he is a felon, Neal is prohibited under federal law from possessing a firearm at any time. Neal was previously convicted in Hennepin County for second-degree assault (2005), two counts of theft of a motor vehicle (2008), and second-degree burglary (2011).If convicted, Neal faces a potential maximum penalty of 20 years in prison on the crack cocaine distribution count, ten years on each felon in possession count, and life on the using and carrying firearms count. Any sentence will be determined by a federal district court judge.
This case is the result of an investigation by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
St. Francis Man Charged with Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that Orson Black Spotted Horse, age 49, of St. Francis, South Dakota appeared before U.S. District Judge Roberto A. Lange on June 25, 2013 and pled guilty to Assault with a Dangerous Weapon. The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both; 3 years of supervised release; and $100 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on September 3, 2012, when Black Spotted Horse hit the victim in the head with a metal pipe.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Tim Maher.
A presentence investigation was ordered and a sentencing date was set for September 16, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Shawneetown Man Pleads Guilty to Methamphetamine and Ammunition OffensesRead the Press Release
On June 26, 2013, Michael A. Lovell, 37, of Shawneetown, IL, plead guilty in United States District Court in Benton to a three-count indictment charging him with conspiracy to manufacture methamphetamine, possession of methamphetamine-making materials, and being a felon in possession of ammunition, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced.
The methamphetamine offenses occurred between August 2010 and August 7, 2012, in Saline and Johnson Counties. The ammunition offense occurred on May 16, 2011, in Saline County. Lovell is currently being held without bond pending an October 17, 2013, sentencing hearing. At that time, he faces a penalty of up to 20 years in prison, followed by 3 years supervised release, and a fine of $1,000,000.
The investigation was conducted by the Southern Illinois Drug Task Force, Johnson County Sheriff’s Office, Vienna Police Department, Saline County Sheriff’s Office, Illinois State Police Methamphetamine Response Team, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Security Contractor Sentenced to Four Years in Prison <br /> for Role as Figurehead Owner in $31 Million Small Business Fraud SchemeRead the Press Release
The chief executive officer of a Virginia-based security contracting firm was sentenced today to serve four years in prison for serving as a figurehead owner of a front company created to obtain more than $31 million intended for disadvantaged small businesses through the Small Business Administration’s (SBA) Section 8(a) program, which allows qualified small businesses to receive sole-source and competitive-bid contracts set aside for minority-owned and disadvantaged small businesses.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Neil H. MacBride of the Eastern District of Virginia; National Aeronautics and Space Administration (NASA) Inspector General Paul K. Martin; SBA Inspector General Peggy E. Gustafson; Defense Criminal Investigative Service (DCIS) Special Agent in Charge of Mid-Atlantic Field Office Robert E. Craig; General Services Administration (GSA) Inspector General Brian D. Miller; and Department of Homeland Security (DHS) Deputy Inspector General Charles K. Edwards made the announcement after the sentencing today.
Dawn Hamilton, 48, of Brownsville, Md., was sentenced by U.S. District Judge T. S. Ellis III in the Eastern District of Virginia. In addition to her prison term, Hamilton was sentenced to serve three years of supervised release and ordered to forfeit approximately $1,232,145 and pay an additional fine of $1 million. On March 15, 2013, Hamilton pleaded guilty to major government fraud.According to court documents, in approximately 2011, Keith Hedman, 53, of Arlington, Va., formed Company A, which was approved to participate in the 8(a) program based on the 8(a) eligibility of its listed president and CEO, an African-American female. When the listed president and CEO left Company A in 2003, Hedman became its sole owner, and the company was no longer 8(a)-eligible.
In 2003, Hedman created Company B, another Arlington-based security contractor, to ensure that he could continue to gain access to 8(a) contracting preferences for which Company A was no longer qualified. Prior to applying for Company B’s 8(a) status, Hedman selected Hamilton, a Company A employee at the time, to serve as a figurehead owner based on her Portuguese heritage and history of social disadvantage. In reality, the new company was managed by Hedman and Company A senior leadership, in violation of 8(a) rules and regulations. To deceive the SBA, the co-conspirators falsely claimed that Hamilton formed and founded the company and that she was the only member of the company’s management. Based on those misrepresentations, Company B obtained 8(a) status in 2004.
From 2004 through February 2012, Hedman – not Hamilton – impermissibly exercised ultimate decision-making authority and control over Company B by directing its finances and allocation of personnel and government contracting activities. Hedman nonetheless maintained the impression that Hamilton was leading the company, including through forgeries of Hamilton’s signatures on documents she had not drafted or seen. Hamilton signed annual reviews and other documents submitted to the SBA that falsely claimed, among other things, that she controlled Company B. Hedman also retained ultimate control over the shell business’s bank accounts throughout its existence. In 2010, Hedman withdrew $1 million in cash from Company B’s accounts and gave the funds in cash to Hamilton and three other conspirators. In 2011, Hedman approached Hamilton’s brother about starting another shell company to continue the scheme. The trio submitted another fraudulent application to the SBA, but it was rejected.
In total, the scheme netted government contracts valued at more than $153 million, from which Company B obtained more than $31 million in contract payments. The various conspirators netted more than $6.1 million that they were not entitled to receive from those payments. Seven other defendants have pleaded guilty in the scheme.
This case is being investigated by NASA Office of the Inspector General, the SBA-OIG, DCIS-OIG, GSA-OIG and DHS-OIG, with assistance from the Defense Contract Audit Agency. Assistant U.S. Attorneys Chad Golder and Ryan Faulconer, a former Trial Attorney for the Criminal Division’s Fraud Section, are prosecuting the case on behalf of the United States.
Security Contractor Sentenced to 48 Months for Role as Figurehead Owner in $31 Million Disadvantaged Small Business Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – The chief executive officer of a Virginia-based security contracting firm was sentenced today to serve 48 months in prison for serving as a figurehead owner of a front company created to obtain more than $31 million intended for disadvantaged small businesses through the Small Business Administration’s (SBA) Section 8(a) program, which allows qualified small businesses to receive sole-source and competitive-bid contracts set aside for minority-owned and disadvantaged small businesses.
United States Attorney Neil H. MacBride of the Eastern District of Virginia; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; National Aeronautics and Space Administration (NASA) Inspector General Paul K. Martin; SBA Inspector General Peggy E. Gustafson; Defense Criminal Investigative Service (DCIS) Special Agent in Charge of Mid-Atlantic Field Office Robert E. Craig; General Services Administration (GSA) Inspector General Brian D. Miller; and Department of Homeland Security (DHS) Deputy Inspector General Charles K. Edwards made the announcement after the sentencing today.
Dawn Hamilton, 48, of Brownsville, Md., was sentenced by U.S. District Judge Gerald Bruce Lee in the Eastern District of Virginia. In addition to her prison term, Hamilton was sentenced to serve three years of supervised release and ordered to forfeit approximately $1.2 million and additionally ordered to pay a fine of $1 million. On March 15, 2013, Hamilton pleaded guilty to major government fraud.According to court documents, in approximately 2011, Keith Hedman, 53, of Arlington, Va., formed Company A, which was approved to participate in the 8(a) program based on the 8(a) eligibility of its listed president and CEO, an African-American female. When the listed president and CEO left Company A in 2003, Hedman became its sole owner, and the company was no longer 8(a)-eligible.
In 2003, Hedman created Company B, another Arlington-based security contractor, to ensure that he could continue to gain access to 8(a) contracting preferences for which Company A was no longer qualified. Prior to applying for Company B’s 8(a) status, Hedman selected Hamilton, a Company A employee at that time, to serve as a figurehead owner based on her Portuguese heritage and history of social disadvantage. In reality, the new company was managed by Hedman and Company A senior leadership in violation of 8(a) rules and regulations. To deceive the SBA, the co-conspirators falsely claimed that Hamilton formed and founded the company and that she was the only member of the company’s management. Based on those misrepresentations, Company B obtained 8(a) status in 2004.
From 2004 through February 2012, Hedman – not Hamilton – impermissibly exercised ultimate decision-making authority and control over Company B by directing its finances, allocation of personnel and government contracting activities. Hedman nonetheless maintained the impression that Hamilton was leading the company, including through forgeries of signatures of Hamilton to documents she had not seen or drafted. Hamilton signed annual reviews and other documents submitted to the SBA that falsely claimed, among other things, that she controlled Company B. Hedman also retained ultimate control over the shell business’s bank accounts throughout its existence. In 2010, Hedman withdrew $1 million in cash from Company B’s accounts and gave the funds in cash to Hamilton and three other conspirators. In 2011, Hedman approached Hamilton’s brother about starting another shell company to continue the scheme. The trio submitted another fraudulent application to the SBA, but it was rejected.
In total, the scheme netted government contracts valued at more than $153 million, from which Company B obtained more than $31 million in contract payments. The various conspirators netted more than $6.1 million that they were not entitled to receive from those payments. Seven other defendants have pleaded guilty in the scheme.
This case is being investigated by NASA Office of the Inspector General, the SBA-OIG, DCIS-OIG, GSA-OIG and DHS-OIG, with assistance from the Defense Contract Audit Agency. Assistant U.S. Attorneys Chad Golder and Ryan Faulconer, a former Trial Attorney for the Criminal Division’s Fraud Section, are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Rosebud Man Charged with False Statement and Theft of Government PropertyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for False Statement and Theft of Government Property.
Christopher Menard, age 39, was indicted by a federal grand jury on June 12, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 25, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 5 years in custody, a $250,000 fine, or both; 3 years of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Menard is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Department of Interior – Office of Inspector General. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Menard was released on bond pending trial. A trial date has not been set.
Registered Sex Offender Sentenced to 264 Months’ Imprisonment and Lifetime Supervised Release for Transporting Child PornographyRead the Press Release
Earlier today, Edmund Ansbro, a registered sex offender, was sentenced to a term of imprisonment of 264 months and lifetime supervised release following his conviction for transporting child pornography in interstate commerce. The proceeding was held before Senior United States District Judge Denis R. Hurley at the United States Courthouse in Central Islip, New York.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, and Edward Webber, Commissioner of the Suffolk County Police Department (SCPD).
Ansbro was arrested in Brooklyn on June 10, 2010, as a result of an undercover investigation by a detective with the SCPD Computer Crimes Unit and a special agent with the FBI Sexual Exploitation of Children Unit. According to a complaint filed in federal court, Ansbro admitted at the time of his arrest that he had been trading child pornography for the past six years and had collected approximately 250 gigabytes of child pornography.
New York State records show that Ansbro was convicted on April 4, 2000, in Kings County Supreme Court, of two counts of Sexual Abuse in the First Degree: Sexual Conduct with an Individual Less Than 11 Years Old. Ansbro was sentenced to six months jail and five years’ probation. Following the conviction, Ansbro was required to register as a sex offender with New York State authorities.
“This sentence stands as a strong warning to prior sex offenders that we will prosecute them to the fullest extent of the law,” stated United States Attorney Lynch. “We will not accept the continuing victimization of our children.” Ms. Lynch expressed her grateful appreciation to the Federal Bureau of Investigation and Suffolk County Police Department for their assistance in this case.
The government’s case was prosecuted by Assistant United States Attorney Allen Bode.
The Defendant
EDMUND ANSBRO
Brooklyn, New York
Age: 43Reehahlio Carroll Sentenced to Forty Years for Murdering Catholic Nun During Commission of A Burglary on the Navajo ReservationRead the Press Release
ALBUQUERQUE – Reehahlio Carroll, 21, an enrolled member of the Navajo Nation from Navajo, N.M., was sentenced this afternoon to 40 years in federal prison followed by five years of supervised release for his second degree murder conviction. Carroll also was ordered to pay $8,992.25 in restitution. Carroll’s sentence was announced by U.S. Attorney Kenneth J. Gonzales, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and John Billison, Director of the Navajo Nation Division of Public Safety.
Carroll was arrested in Nov. 2009, based on federal charges arising out of the murder of Sister Marguerite Bartz of the Order of the Sisters of the Blessed Sacrament, which is part of the Diocese of Gallup, N.M. The murder occurred on Nov. 1, 2009, during the burglary of Sister Bartz’s home on the Saint Berard Mission which is located on the Navajo Indian Reservation. Proceedings in the case were delayed by protracted competency proceedings resulting in a judicial finding that Carroll was competent to stand trial.Sister Bartz’s body was discovered in a pool of blood in the bedroom of her ransacked home, a double-wide trailer located next to the church, on the evening of Nov. 1, 2009, by a nun who was concerned about Sister Bartz’s failure to show up for mass in the Diocese’s church in Sawmill, Ariz. On April 5, 2013, Carroll pled guilty to a felony information charging him with the second degree murder of Sister Bartz. During his plea hearing, Carroll admitted that he killed Sister Bartz at approximately midnight on Nov. 1, 2009, after he broke into a trailer home on the grounds of the Catholic Church in Navajo for the purpose of stealing cash or items that he could readily sell for cash.
According to court records, after Carroll broke a window to gain access to Sister Bartz’s trailer, he rummaged through drawers and cabinets searching for cash and items of value that he could sell for cash or trade for drugs or alcohol. Carroll found a flashlight in a room that he used for illumination as he continued searching for items to steal. When Carroll encountered Sister Bartz in one of the bedrooms and she attempted to defend herself by hitting him with a slipper, he brutally murdered her by beating her repeatedly with a flashlight and then, in an attempt to silence her, strangling her with a t-shirt. The pathologist who performed the autopsy concluded that the cause of death was multiple blunt force head trauma and ligature strangulation.
Carroll was arrested on tribal charges on Nov. 5, 2009, after law enforcement officers learned that he had been observed driving a car that was reported stolen from the Mission’s grounds. Following his arrest, Carroll provided a detailed confession in which he admitted murdering Sister Bartz while burglarizing her home. Carroll remained in tribal custody until he was arrested on federal charges on Nov. 10, 2009.
This case was investigated by the Gallup office of the FBI and the Window Rock Police District of the Navajo Nation Division of Public Safety, with assistance from the New Mexico State Police. It was prosecuted by Assistant U.S. Attorneys Presiliano A. Torrez and Paul H. Spiers.
Pueblo Man Arrested for Tax Evasion, Bank Fraud and Interfering with IRS LawsRead the Press Release
DENVER – Michael Destry Williams, age 49, of Pueblo, Colorado, was arrested without incident on Wednesday, June 26th on charges of tax evasion, structuring, bank fraud, and interfering with IRS laws, the U.S. Attorney’s Office, Internal Revenue Service – Criminal Investigation, Treasury Inspector General for Tax Administration and the U.S. Marshals Service announced. Williams was indicted by federal grand jury in Denver on March 22, 2012, followed by a superseding indictment on July 26, 2012. Both indictments remained under seal until his arrest. The U.S. Marshals with assistance from the Pueblo County Sheriff located and apprehended Williams in Pueblo, Colorado after being on the run for over a year from state and federal charges. Williams was later transported to Denver yesterday for his initial appearance where he was advised of his rights and the charges filed against him. He is due back in court on July 2, 2013 at 2:00 p.m. for arraignment and a detention hearing.
According to the indictment and superseding indictment, Williams was self-employed as a general contractor focusing primarily on residential construction projects, including roofing, remodeling and the repair and restoration of residential structures sustaining fire and water related damage. He was also self-employed as a real estate investor involved in the purchase, renovation and resale (commonly known, as “fixing and flipping”) of residential properties. Williams operated under the name of Greenview Construction, Inc. a Colorado corporation.
From April 2005 and continuing through January 2008, Williams willfully attempt to evade a substantial amount of income tax and self-employment tax due and owing by him to the United States of America for calendar years 2005, 2006 and 2007, among other ways, by failing to file income tax returns and to pay to the IRS income tax and self-employment tax. The indictments allege that Williams established and used trusts as part of his tax evasion scheme. Furthermore, Williams structured over $90,000 in deposited funds from July 2008 through September 2008.
In November or 2009, Williams attempted to defraud a Colorado financial institution by depositing worthless fabricated United States Treasury checks for his own benefit. There were two false treasury checks totaling $55,000 payable to Greenview Construction. In February of 2010, there was a third fabricated United States Treasury check in the amount of $250,000 that Williams attempted to negotiate.From October 2008 through December 2010, Williams mailed numerous frivolous correspondences to the Secretary of the Treasury as well as various IRS offices in an attempt to obstruct and impede the administration of the internal revenue laws. The obstructive efforts, according to the superseding indictment, included attempts by Williams to target State of Colorado judicial officers who had presided over three separate state cases in which Williams was named as a defendant. The superseding indictment alleges, in particular, that Williams sent the IRS criminal referrals accusing one of these judicial officers and the Clerk of the El Paso County District Court with committing criminal tax and related offenses.
Williams was charged with two counts of tax evasion, one count of structuring, two counts of bank fraud, three counts of fictitious obligations and one count of interfering with the administration of internal revenue laws. Tax evasion and structuring carries a penalty of not more than 5 years in federal prison, and a fine of up to $250,000 per count. Bank fraud carries a penalty of not more than 30 years in federal prison, and a fine of up to $1,000,000 per count. Fictitious obligations carries a penalty of not more than 25 years in federal prison, and a fine of up to $1,000,000 per count. Interfering with the administration of internal revenue laws carries a penalty of not more than 3 years in federal prison, and a fine of up to $250,000 per count.
This case was investigated by agents with IRS Criminal Investigation and U.S. Treasury Inspector General for Tax Administration (TIGTA). U.S Marshals with the assistance of the Pueblo County Sheriff’s Office located and apprehended Williams. The case is being prosecuted by Assistant U.S. Attorney Kenneth Harmon.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
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Pine Ridge Woman Sentenced to 168 Months for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota woman convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on June 28, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Victoria Lee Running Hawk, age 31, was sentenced to 168 months’ imprisonment, 4 years' supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
On September 16, 2012, Running Hawk was stopped for speeding on I-90. Law enforcement subsequently discovered she possessed 50 grams or more of methamphetamine, with the intent to distribute. Running Hawk pled guilty to the charge on February 28, 2013.
This case was investigated by the Drug Administration Enforcement, the Unified Narcotics Enforcement Team, and the South Dakota Highway Patrol. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Running Hawk was immediately turned over to the custody of the U.S. Marshal.
Pine Ridge Man Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota man was indicted by a federal grand jury for assaulting a woman, fracturing bones in her neck and nose.
Alexander Winter, age 27, was indicted on June 18, 2013 for Assault Resulting in Serious Bodily Injury and Assault Resulting in Substantial Bodily Injury to a Spouse, Intimate Partner, or Dating Partner. Winter appeared before U.S. Magistrate Judge Veronica L. Duffy on June 24, 2013 and pled not guilty to the indictment.
The maximum penalty upon conviction is 10 years’ imprisonment and/or a $250,000 fine. The charges are merely an accusation and Winter is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Winter was released on bond pending trial. A trial date has not been set.
Pierre Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that Adrian Wells, age 37, of Pierre, South Dakota appeared before U.S. District Judge Roberto A. Lange on June 25, 2013 and pled guilty to Failure to Register as a Sex Offender. The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund.
On December 6, 1995, Wells was convicted of Aggravated Sexual Abuse. The Court sentenced Wells to 63 months in custody and five years of supervised release and also ordered that he register as a sex offender.
On May 19, 2009, Wells signed a lease for an apartment but failed to register the new apartment as his residence. Instead, Wells continued to use his previous address, even though he did not reside there. Wells registered the previous address with law enforcement on five occasions.
The investigation was conducted by the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date was set for September 11, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Owner of Landscaping Business in Freeport, N.Y. Pleads Guilty to Tax EvasionRead the Press Release
The Justice Department and the Internal Revenue Service (IRS) announced today that Lawrence Garafola, a resident of Poway, Calif., pleaded guilty to tax evasion.
According to documents filed with the court, Garafola owned and operated A-1 Tree & Shrub Service (ATS), a landscaping business located in Freeport, N.Y. Beginning in approximately 2004 and continuing through approximately 2008, Garafola failed to report to the IRS a substantial portion of income he obtained through payment for services rendered by ATS. Instead of depositing checks to ATS into ATS’s business bank account, Garafola used a commercial check cashing service to cash checks and failed to report that income to his tax return preparer.
Garafola admitted that for tax years 2007 and 2008, he failed to report approximately $1,843,847 of income, resulting in an additional tax due and owing to the government of approximately $516,277.
Garafola faces a maximum sentence of five years in prison, three years of supervised release and a $250,000 fine. He has agreed to pay restitution of $760,637 to the IRS.
The case was investigated by IRS-Criminal Investigation. Trial Attorneys Mark Kotila and Robert Kennedy of the Justice Department’s Tax Division are prosecuting this case.
Owner of Rehabilitation Facility Pleads Guilty to Mail Fraud ChargeRead the Press Release
SANTA ANA, California – The owner and chief executive officer of a comprehensive outpatient rehabilitation facility pleaded guilty today to mail fraud for submitting claims to Medicare for services that were not prescribed by treating doctors.
Tuan Duc Tran, 53, of Westminster, pleaded guilty before United States District Judge Josephine Staton Tucker.
This case involves Medicare billings by Fountain Valley Healthcare Center (FVHC), a rehabilitation facility that Tran operated. Tran admitted that he submitted bills to Medicare based on false claims that Medicare beneficiaries had been referred to FVHC for physical and respiratory therapy. These claims for payment violated Medicare rules because, as Tran acknowledged, the treating doctors had not referred the beneficiaries for rehabilitation.
Pursuant to a plea agreement, Tran will be required to pay $777,291 in restitution to Medicare.
Judge Tucker scheduled Tran’s sentencing for November 8.
The mail fraud count carries a maximum statutory sentence of 20 years in federal prison.
Release No. 13-089
Owner of Nellie’s Provisions Sentenced to Four Months in Prison for Tax EvasionRead the Press Release
CAMDEN, N.J. – The owner of a meat distribution company was sentenced today to four months in prison and four months of house arrest for evading taxes related to income diverted from his companies for his personal use, U.S. Attorney Paul J. Fishman announced.
Nicholas Papanier Sr., 57, of Sewell, N.J., previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with one count of tax evasion. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Between 2006 and 2009, Papanier owned Nellie’s Provisions, a meat distribution company that provided all of the meat for Primo Hoagies franchises and other independent restaurants. In 2006, 2007 and 2008, Papanier persuaded Primo Hoagies franchise owners to buy Thumann’s deli products from Nellie’s Provisions, often paying for them in cash. He took a significant amount of the cash paid to Nellie’s Provisions and deposited it into his personal bank accounts. He then used the money from his personal accounts to pay personal expenditures. He diverted a total of $556,664 for the calendar years 2006, 2007 and 2008 in the amounts of $56,395, $349,264, and $151,005, respectively.
Papanier admitted that he did not report the diverted cash to the IRS and only reported Form W-2 wages, interest and dividend income, and property tax information. By omitting all of the diverted cash, he failed to disclose and report a significant portion of this income on his tax returns, causing those tax returns to substantially understate the amount of income he received.
He admitted that for 2006, 2007 and 2008, had he reported the additional cash on his income tax returns he would have owed the government $189,656.
As part of the plea and in addition to the restitution, Papanier agreed to forfeit $484,010 to the United States. On Oct. 14, 2009, the United States filed a Verified Complaint for Forfeiture In Rem to forfeit and condemn to the use and benefit of the United States $372,042.54 in United States currency that was seized from Papanier’s bank accounts. On Sept. 16, 2010, the United States filed another Verified Complaint for Forfeiture In Rem to forfeit and condemn to the use and benefit of the United States an additional $111,967.50 in United States currency that was seized from Papanier’s bank accounts. The Complaints alleged that the subject funds were subject to forfeiture to the United States because they were involved in and were traceable to Structuring of Currency to Avoid a Reporting Requirement.
In addition to the prison term, Judge Hillman sentenced Papanier to two years of supervised release – which includes four months of house arrest – and fined him $10,000.
U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden in the criminal case, and Jordan Anger of the U.S. Attorney’s Office Asset Forfeiture Unit in Newark in the civil action.
13-271
Defense counsel: Ronald Warren Esq., Haddonfield, N.J.
Owner of Nellie’s Provisions Sentenced to Four Months in Prison for Tax EvasionRead the Press Release
CAMDEN, N.J. – The owner of a meat distribution company was sentenced today to four months in prison and four months of house arrest for evading taxes related to income diverted from his companies for his personal use, U.S. Attorney Paul J. Fishman announced.
Nicholas Papanier Sr., 57, of Sewell, N.J., previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with one count of tax evasion. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Between 2006 and 2009, Papanier owned Nellie’s Provisions, a meat distribution company that provided all of the meat for Primo Hoagies franchises and other independent restaurants. In 2006, 2007 and 2008, Papanier persuaded Primo Hoagies franchise owners to buy Thumann’s deli products from Nellie’s Provisions, often paying for them in cash. He took a significant amount of the cash paid to Nellie’s Provisions and deposited it into his personal bank accounts. He then used the money from his personal accounts to pay personal expenditures. He diverted a total of $556,664 for the calendar years 2006, 2007 and 2008 in the amounts of $56,395, $349,264, and $151,005, respectively.
Papanier admitted that he did not report the diverted cash to the IRS and only reported Form W-2 wages, interest and dividend income, and property tax information. By omitting all of the diverted cash, he failed to disclose and report a significant portion of this income on his tax returns, causing those tax returns to substantially understate the amount of income he received.
He admitted that for 2006, 2007 and 2008, had he reported the additional cash on his income tax returns he would have owed the government $189,656.
As part of the plea and in addition to the restitution, Papanier agreed to forfeit $484,010 to the United States. On Oct. 14, 2009, the United States filed a Verified Complaint for Forfeiture In Rem to forfeit and condemn to the use and benefit of the United States $372,042.54 in United States currency that was seized from Papanier’s bank accounts. On Sept. 16, 2010, the United States filed another Verified Complaint for Forfeiture In Rem to forfeit and condemn to the use and benefit of the United States an additional $111,967.50 in United States currency that was seized from Papanier’s bank accounts. The Complaints alleged that the subject funds were subject to forfeiture to the United States because they were involved in and were traceable to Structuring of Currency to Avoid a Reporting Requirement.
In addition to the prison term, Judge Hillman sentenced Papanier to two years of supervised release – which includes four months of house arrest – and fined him $10,000.
U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden in the criminal case, and Jordan Anger of the U.S. Attorney’s Office Asset Forfeiture Unit in Newark in the civil action.
13-271
Defense counsel: Ronald Warren Esq., Haddonfield, N.J.
Omaha Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that on June 27, 2013, the Honorable Joseph F. Bataillon, U.S. District Court Judge, sentenced Maria Terrazas, age 38, of Omaha, to 156 months imprisonment for her role in a conspiracy to distribute methamphetamine. Following the prison term, Terrazas will serve five years on supervised release.
In 2011, the Omaha Police Department began investigating Maria Terrazas for conspiring with others to distribute over 4000 grams of methamphetamine. In May, 2012, an undercover agent with the Bureau of Alcohol, Tobacco, Firearms, and Explosives began buying methamphetamine directly from Terrazas. During the execution of a search warrant on Terrazas’s residence on July 16, 2012, officers found over four pounds of methamphetamine. Terrazas was also in possession of a firearm at that time.
The matter was investigated by the Omaha Police Department and the ATF.North Dakota Woman Pleads Guilty to Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that April Pretends Eagle, age 31, of Fort Yates, North Dakota appeared before U.S. Magistrate Judge Mark A. Moreno on June 25, 2013 and pled guilty to Count III of the Indictment that charged her with Possession with Intent to Distribute a Controlled Substance.
The maximum penalty upon conviction is 5 years of imprisonment, a $250,000 fine, or both; at least 2 years of supervised release and an additional term of up to 2 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The charge stems from an investigation of burglaries in Eagle Butte, South Dakota. Based on information developed during the investigation, a criminal investigator with the Cheyenne River Sioux Tribe obtained a tribal search warrant for co-Defendant Philip LaBatte’s residence, where Pretends Eagle was staying. When law enforcement executed the search warrant, they found at least 250 grams, but less than 1 kilogram, of marijuana along with a scale, rolling papers, and a grinder. LaBatte’s residence was in Eagle Butte.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Pretends Eagle was released on bond pending sentencing which has been set for September 11, 2013.
New Boston, Texas Woman Indicted for Ricin LettersRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 35-year-old New Boston, Texas woman has been indicted and charged with federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Shannon Guess Richardson was named in a three-count indictment returned by a federal grand jury on June 27, 2013. The indictment charges Richardson with threatening the President of the United States, mailing a threatening letter to New York City Mayor Michael Bloomberg, and mailing a threatening letter to Mark Glaze.According to the indictment, on or about May 20, 2013, Richardson is alleged to have mailed three threatening letters containing the toxin ricin. The letters were sent to President Barack Obama and Mark Glaze in Washington, D.C., and to Mayor Michael Bloomberg in New York City. Richardson was arrested on June 7, 2013, in Mt. Pleasant, Texas, and has been detained since that time.
If convicted, Richardson faces up to five years in federal prison on each charge.
This case is being investigated by the Federal Bureau of Investigation, the U.S. Secret Service, the U.S. Postal Inspection Service, the Texas Department of Public Safety, the New Boston, Texas Police Department, and the Shreveport, Louisiana Police Department. This case is being prosecuted by Assistant U.S. Attorneys Brit Featherston, Frank Coan, and Ryan Locker.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Ms-13 Street Gang Leader Sentenced to 365 Months’ Imprisonment for 2009 Murder and Attempted MurderRead the Press Release
Earlier today, United States District Judge Joseph F. Bianco sentenced Jose Gustavo Orellana-Torres, also known as “Diablito,” the former leader of the Coronados clique of La Mara Salvatrucha, also known as the MS-13 street gang, to 365 months’ imprisonment following his September 25, 2012 guilty plea to racketeering, including predicate acts relating to the May 26, 2009 murder of Dexter Acheampong in Central Islip, New York, and the July 5, 2009 attempted murder of a suspected rival gang member in Roosevelt, New York.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, and Thomas V. Dale, Commissioner of the Nassau County Police Department.
According to his plea allocution and documents previously filed in the case, on May 26, 2009, Orellana-Torres attended a Coronados clique meeting in Brentwood, New York, and the MS-13 members agreed to “put in work” for the gang by killing rival gang members. Orellana-Torres and several other MS-13 members drove around Brentwood and Central Islip looking for rival gang members, and Orellana-Torres was armed with a .38 caliber revolver. While in the vicinity of East Maple Street in Central Islip, the MS-13 members observed Dexter Acheampong, whom they did not know, but believed, based on the color of his skin and the neighborhood he was walking in, to be a member of the Bloods street gang. In fact, Mr. Acheampong did not belong to any street gang. Orellana-Torres stepped out of the car and fired four shots at Mr. Acheampong with the .38 caliber revolver, striking the victim twice in the back as he tried to escape. Mr. Acheampong was found dead in the driveway of a home on East Maple Street the next morning.
Just over a month later, on July 4-5, 2009, Orellana-Torres attended another MS-13 meeting, this time in Roosevelt, New York. The MS-13 members again discussed killing rival gang members. Orellana-Torres, who possessed the same .38 caliber revolver that night, and other MS-13 members drove around Roosevelt, New York, looking for rival gang members. The MS-13 members observed a man, whose identity is known to the government but is not being disclosed in order to protect his safety, whom they believed to be a rival gang member. One of the other MS-13 members fired several shots at the man, striking him once in the hand.
“The MS-13 street gang has become infamous for its senseless and depraved acts of violence, but even for the MS-13, these vicious crimes demonstrated exceptional depravity. Orellana-Torres and his co-conspirators targeted Dexter Acheampong and another young man, whom they did not even know, because they believed them to be rival gang members,” stated United States Attorney Lynch. “This sentence should make clear that gang members will pay a heavy price for such cold, calculated acts of violence.”
FBI Assistant Director-in-Charge Venizelos stated, “We cannot overstate our commitment to investigating MS-13 and other gangs on Long Island. As the case of Orellana-Torres shows, MS-13 is not about ethnic pride, it is a violent, murderous horde. It is hard to imagine a more wanton disregard for human life than shooting a person in the back because the color of his skin makes you think a may be a rival gang member.”
Orellana-Torres’s conviction is the latest in a series of federal prosecutions by this Office targeting New York members of the MS-13, a violent international street gang comprised primarily of immigrants from El Salvador, Honduras and Guatemala. With numerous branches, or “cliques,” the MS-13 is the largest street gang on Long Island. Since 2002, more than 200 MS-13 members, including more than two dozen clique leaders, have been convicted on federal felony charges in the Eastern District of New York. More than 100 of those MS-13 members have been convicted on federal racketeering charges. Since 2010 alone, this Office has convicted more than 30 members of the MS-13 on charges relating to their participation in one or more murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, comprising agents and officers of the FBI, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation, Suffolk County Sheriff’s Department and the Rockville Centre Police Department.
The government’s case was prosecuted by Assistant United States Attorneys John J. Durham, Raymond A. Tierney and Carrie N. Capwell.
The Defendant
JOSE GUSTAVO ORELLANA-TORRES (“Diablito”)
Age: 28Monroe County Residents Charged for Illegal Harvest and Sale of Marine LifeRead the Press Release
Wifredo A, Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge for the National Oceanic and Atmospheric Administration (NOAA), Office of Law Enforcement, Southeast Division, and David G. Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service (FWS), Office of Law Enforcement, announced the filing of criminal charges against Key Marine, Inc., a Florida corporation with its principal place of business on Grassy Key, Eric P. Pedersen, 51, and Serdar Ercan, 42, both residents of Monroe County, Florida. The single-count Information alleges that the three defendants engaged in a conspiracy to take, harvest, capture, transport, and sell various species of marine wildlife harvested from the Florida Keys National Marine Sanctuary (FKNMS) and State waters, for commercial sale and distribution in interstate and foreign commerce to their financial gain, in violation of the laws and regulations of the State of Florida, and the federal Lacey Act, Title 16, United States Code, Sections 3372(a)(1),(a)(2)(A), and (4), and 3373(d)(1), all in violation of Title 18, United States Code, Section 371. Initial court appearances on the charges have not yet been set.
The case has been assigned to U.S. District Judge Jose E. Martinez. If convicted on the charge, Key Marine, Inc. faces a possible fine of $500,000 or twice the gross pecuniary gain or loss arising from the relevant conduct. Defendants Pedersen and Ercan each face a statutory maximum sentence of up to five years in prison.
According to the Information, from October 2010 through February 2011, the defendants engaged in the day to day business of collecting, exporting, and selling in interstate and foreign commerce various species of marine life, including Live Rock and attached invertebrates, specifically Ricordia florida, sea fans (Gorgonia species); bonnethead sharks (Sphyma tiburo); lemon sharks (Negaprion brevirostris); and nurse sharks (Ginglymostoma cirratum), with market values in excess of $350.00, knowing that the marine life was taken and intended to be sold in violation of the laws and regulations of the State of Florida. The Information further charges that the defendants exceeded the legal limit on the harvest of Ricordia florida as part of their illicit harvesting activities.
Pursuant to the Florida Keys National Marine Sanctuary and Protection Act and the National Marine Sanctuary Act, the National Oceanic & Atmospheric Administration issued final regulations in January 1997 to govern the conduct of activities within the sanctuary. Title 15, Code of Federal Regulations, Section 922.163(a)(2) prohibits the removal of, injury to, or possession of coral or live rock. Section 922.163(a)(2)(I) prohibits moving, removing, taking, harvesting, damaging, disturbing, breaking, cutting, or otherwise injuring any living or dead coral or coral formation, or attempting any of these activities.
Florida Administrative Code, Section 68B-42.008, prohibits the harvest of live rock. Florida Statue 370.07 requires that a person who sells salt water marine related wildlife such as Ricordia florida, to hold a State wholesale and retail license. The federal Lacey Act, among other things, makes it unlawful for any person to import, export, transport, sell, receive, acquire, or purchase in interstate or foreign commerce, any fish or wildlife, taken, possessed, transported, or sold in violation of any law or regulation of any State. 16 U.S.C. §3372(a)(2)(A). According to the allegations in this case, the defendants were not authorized by any competent authority to harvest or attempt to harvest any Live Rock from the FKNMS or State waters during the time period relevant to this Information, nor did they hold the marine-related wholesale and retail permits required by Florida Statute 370.07.
Mr. Ferrer commended the investigative efforts of the Special Agents of NOAA-OLE and FWS-OLE in this case. The case is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
An Information is only an accusation and a defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Michigan Man Sentenced in Fraudulent Test Kit SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Allison C. Lerner, Inspector General, National Science Foundation (NSF), and Ronald Verrochio, Postal Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, announced that Alexander Lorin Davis, 40, of Pinckney, Michigan, was sentenced yesterday in federal District Court in West Palm Beach on charges related to falsely making and forging the seal of the National Science Foundation (NSF), an agency of the United States, and mail fraud in connection with the marketing by internet to the public of environmental test kits that were not in fact analyzed by qualified laboratories as asserted in advertisements and literature accompanying the kits, in violation of Title 18, United States Code, Sections 506(a)(1), 1341, 4, and (2).
U.S. District Judge Kenneth Ryskamp, who had previously accepted guilty pleas in this matter from Alexander Davis and his spouse, Dawn Marie Davis, 46, also of Pinckney, sentenced Alexander Davis to 15 months in prison, to be followed by three years of supervised release. Judge Ryskamp also ordered Alexander Davis to pay $50,264.53 in restitution to 154 victims of the fraudulent scheme. Dawn Davis, who previously pled guilty to a charge of misprision of a felony for failing to alert appropriate authorities to the criminal conduct, was sentenced by Judge Ryskamp to two years of probation and was ordered to pay restitution in the amount of $9,596.09 after a hearing held on April 25, 2013.
According to court records, including Joint Factual Statements submitted to the Court and statements made during the sentencing hearing, from May 2011 through November 2012, Alexander Davis owned and operated Davis Test Kits (DTK). DTK was in the business of marketing test kits for use in homes and businesses to detect the presence of various environmental pollutants and hazards, such as molds, asbestos, radon, and lead. To promote business, the DTK website displayed the forged and counterfeited seal of the NSF. As part of the scheme, Alexander Davis also made materially false representations and promises on the website, claiming that, upon return of the test kit by the customer, DTK would cause the kit to be submitted for testing by individuals from an established, accredited laboratory.
In fact, however, DTK did not operate or employ testing laboratories certified as represented on the website and many test kits returned to DTK were never submitted for testing by an accredited laboratory. To perpetuate the fraud, the defendants would mail customers whose test kits had not been tested results from other laboratory tests. Some, customers were induced to pay additional amounts, in some instances exceeding thousands of dollars, based on false assertions by the defendants that additional testing was necessary.
During the same time, Dawn Davis was aware that her husband was using the seal of the NSF on the internet website of DTK and knew the company was marketing the test kits. She was also aware that DTK did not submit all the customer test kits received through the mail to accredited laboratories for analysis as DTK represented on its website and in written materials provided to the customers. Despite her knowledge, Dawn Davis concealed the fact that DTK was selling its testing services without any affiliation or connection to NSF, and was failing to provide the purchased testing services to some customers.
The National Science Foundation is an independent federal agency established by Congress in 1950 to promote the progress of science and to advance the national health, prosperity, and welfare. The agency meets this mission by funding approximately 20% of all federally supported basic research conducted by America’s colleges and universities with an annual budget of approximately $6.9 billion. The National Science Foundation neither tests consumer products, nor audits and inspects private laboratories.
Mr. Ferrer commended the investigative efforts of the National Science Foundation Office of Inspector General and the U. S. Postal Inspection Service. The criminal case is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
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.
Maryland Man Sentenced to 26 Years in Prison for August 2011 Slaying in Northeast Washington-Defendant Chased Victim and Shot Him Numerous Times-Read the Press Release
WASHINGTON – Ricardo Mitchell, 33, of Temple Hills, Md., was sentenced today to 26 years in prison on a charge of second-degree murder while armed in a slaying that took place in August 2011 in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Mitchell pled guilty in April 2013 in the Superior Court of the District of Columbia to the murder charge as well as a charge of possession of a firearm during a crime of violence. He was sentenced by the Honorable Lynn Leibovitz. Upon completion of his prison term, Mitchell is to be placed on five years of supervised release.
According to the government’s evidence, in the early evening of Aug. 21, 2011, Mitchell was outside a residence in the 3900 block of Clay Place NE when he exchanged words with the victim, Wyatt Earp Robinson. Mr. Robinson, 33, walked away. Mr. Robinson headed toward his vehicle, where his girlfriend and four-year-old child were waiting.
Mitchell then ran into the residence. He returned outside and ran from the front porch of the house with a gun in his hand and up the sidewalk, toward Minnesota Avenue, and after Mr. Robinson. He caught up with Mr. Robinson when the victim was approximately five feet from his vehicle. At that point, Mitchell confronted Mr. Robinson and shot him several times.
After shooting Mr. Robinson, who had nothing in his hands but his cellphone, the defendant began to walk away, but turned back toward the victim and fired another shot at him. A total of nine .40-caliber cartridge casings were found on the scene by police, and all were fired from the same firearm. An autopsy revealed nine gunshot wounds to Mr. Robinson’s body.
Following the shooting, Mitchell fled into and through the residence on Clay Street NE. He exited through the residence’s back door and fled the scene on a motorcycle.
After shooting and killing Mr. Robinson, Mitchell fled to a storage facility in Forestville, Md., where he hid the motorcycle that he used to flee the crime scene. The defendant is captured on surveillance footage from that storage facility wearing the same clothes that he was seen wearing at the time of the murder. Mitchell was arrested on Aug. 24, 2011.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives, officers and crime scene technicians who investigated the case for the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigators Durand Odom and Zachary McMenamin, Victim/Witness Advocate Marcia Rinker, and Paralegal Specialists Mia Beamon, Kendra Johnson, Marian Russell and Phaylyn Hunt. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Reagan M. Taylor, Teresa Howie and Stephen J. Gripkey, who prosecuted the matter.
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