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Tuesday 25 June 2013
Willard Woman Charged with Social Security FraudRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that an information was filed against Diana Ousley, age 57, of Willard, Ohio.
The charge relates to Social Security Fraud beginning on or about May 2004 and continuing to November 2012. She is accused of fraudulently receiving $64,414.
If convicted, defendant’s sentence will be determined by the Court after review of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Office of Inspector General Social Security Administration.
The case is being handled by Assistant United States Attorney Angelita Cruz Bridges.
An information is only a charge and is not evidence of guilt. The burden of proof is always on the government to prove a defendant guilty beyond a reasonable doubt.
USDA Employee Pleads Guilty to Lying in Order to Secure Loans to Hide More Than $600,000 in Thefts from Federally Funded Non-ProfitRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced today that Donna Jean Remides, 51, of Winnsboro, La., pleaded guilty before U.S. District Judge Robert G. James to lying on loan applications in order to receive loans used to hide the theft of $640,000 from a federally funded non-profit.
A trial started Monday but ended today as the prosecution was calling witnesses to testify. Remides decided to plead guilty to the charge of making a false statement to a bank instead of continuing with the trial. Witness testimony and documents admitted at trial and the guilty plea revealed that Remides was employed as a project coordinator by the U.S. Department of Agriculture (USDA) through the Natural Resource Conservation Service (NRCS) to work for the non-profit Northeast Delta Resource Conservation and Development Council (NDRC&DC) in Winnsboro. From January 2001 to December 2010, Remides used the NDRC&DC accounts to pay herself $640,000 without authorization from the NDRC&DC. She wrote herself and her private business checks over the nearly 10-year period. She also obtained loans in the name of the council to cover the thefts. Loan documents were filled out stating that the council members had authorized loans at meetings when in fact they had not.
Remides faces 30 years in prison, a $1 million fine, and five years of supervised release for one count of making a false statement to a bank. Sentencing has been set for Oct. 7, 2013.
The USDA-Office of Inspector General in Jackson, Miss., and the FBI investigated the case. Assistant U.S. Attorney Cytheria D. Jernigan is prosecuting the case.
U.S. Attorney Sarah R. Saldana Welcomes Trafficking in Persons (TIP) Report HeroesRead the Press Release
TIP Report Heroes Visiting From Cameroon, Croatia, Guyana, Iraq, Japan, Nicaragua and the Philippines
ARLINGTON, Texas — U.S. Attorney Sarah R. Saldaña of the Northern District of Texas welcomed the 2013 Trafficking in Persons (TIP) Report Heroes at an executive session this morning of the North Texas Anti-Trafficking Team (NTATT) in Arlington, Texas. Each year, the Department of State honors individuals from around the world who have devoted their lives to fight human trafficking. The 2013 TIP Report Heroes were announced last week by Secretary of State John Kerry when he released the 2013 TIP Report, and Dallas is one of only three cities in the country honored with their visit.
U.S. Attorney Saldaña said, “I am honored and humbled to welcome this impressive group of heroes today – heroes who have made an extraordinary difference in the global fight against modern-day slavery. The fight against human trafficking and modern-day slavery, including the rights and interests of victims of these heinous crimes, is a Department of Justice priority.”
The TIP Report is the U.S. Government’s principal diplomatic tool to engage foreign governments on human trafficking. According to the Department of State, it is also the world’s most comprehensive resource of governmental anti-human trafficking efforts and reflects the U.S. Government’s commitment to global leadership on this key human rights and law enforcement issue. The U.S. Government uses the TIP Report to engage foreign governments in dialogues to advance anti-trafficking reforms and to combat trafficking and to target resources on prevention, protection and prosecution programs.
At today’s meeting, U.S. Attorney Saldaña introduced these Heroes and noted their tireless efforts – in spite of resistance, opposition and threats to their lives – to protect victims, punish offenders and raise awareness of ongoing criminal practices in their countries and abroad. The Heroes are from Cameroon, Croatia, Guyana, Iraq, Japan, Nicaragua and the Philippines, and each shared his personal story at the meeting.
The U.S. Attorney’s Office for the Northern District of Texas launched the NTATT in 2006 to combat human trafficking in the Dallas – Fort Worth area and surrounding counties. NTATT’s goal is to work with law enforcement and private agencies to discover and assist victims of human trafficking while identifying and prosecuting offenders. In addition to the U.S. Attorney’s Office, agencies represented in today’s roundtable discussion included: Arlington Independent School District Police Department, Arlington Police Department, Catholic Charities of Dallas, Catholic Charities of Fort Worth, Child Protective Services, Cooks Children’s Hospital, Dallas County Juvenile Department, Dallas Police Department, Dallas Independent School District Police Department, FBI, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Fort Worth Police Department, Genesis Women’s Shelter, Mosaic Family Services, Safe City Commission, Tarrant County Criminal District Attorney’s Office, Texas Alcoholic Beverage Commission, the U.S. Equal Employment Opportunity Commission and the Texas Department of Public Safety.
Two District Men Sentenced to Prison Terms for Robbery at Northwest Washington Apartment Building-Defendants Targeted Victims in the Lobby-Read the Press Release
WASHINGTON – Michael Richardson and Kendall Lowe, both 22 and of Washington, D.C., have been sentenced to prison terms on charges stemming from a robbery last fall at an apartment building in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
The defendants pled guilty in March 2013 in the Superior Court of the District of Columbia. Richardson pled guilty to robbery and carrying a pistol without a license. Lowe pled guilty to robbery. Both were sentenced by the Honorable Heidi M. Pasichow.
Richardson was sentenced on June 21, 2013 to a 3 ½-year prison term, and Lowe was sentenced on June 7, 2013 to three years in prison. Upon completion of their prison terms, both men will be placed on three years of supervised release.
According to the government’s evidence, Richardson and Lowe targeted the victims, two men, at about 10:40 p.m. on Oct. 5, 2012 after seeing them in the lobby of an apartment building in the 200 block of Hamilton Street NW. Richardson and Lowe went into the lobby. Then, with Lowe acting as a look-out, Richardson pointed a gun at one of the victims and demanded money, getting $47. Richardson then turned and pointed the gun at the second victim and demanded money. When that man said he had no money, Richardson and Lowe fled the building.
A witness spotted the defendants the following day and called police.
In announcing the sentences, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Debra McPherson and Assistant U.S. Attorney Natalia Medina, who investigated and prosecuted the case.
13-224Springfield Woman Charged with Distributing K2 to Raise Money for Husband's Legal FeesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman was charged in federal court today with distributing synthetic marijuana, commonly referred to as K2, in an apparent effort to pay the legal fees of her husband, who is incarcerated for the same offense.
Victoria A. Butchee, also known as Victoria A. Wohlin, 28, of Springfield, was charged in a criminal complaint that was filed in the U.S. District Court in Springfield.
According to an affidavit filed in support of today’s complaint, Butchee ordered chemicals through the mail and made synthetic marijuana in order to pay the legal fees of her husband, Travis E. Butchee, also known as “Donkey,” 37. He has been incarcerated since June 11, 2013 after being indicted by a federal grand jury for participating in a conspiracy to distribute synthetic marijuana.
Victoria Butchee offered to front the product to a confidential informant, the affidavit says. She allegedly told the informant that she expected a projected sales amount of $30,000.
On Monday, June 24, 2013, Victoria Butchee drove to the informant’s location. She removed a large black garbage bag from behind the driver’s seat, the affidavit says, and took the bag inside the location to deliver it to the informant. She was arrested when she left the store. According to the affidavit, the bag contained 10 pounds of synthetic marijuana.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Springfield, Mo., Police Department.
South Carolina Man Indicted for Defrauding Birmingham Heavy Equipment CompanyRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a South Carolina man for wire fraud in connection with a scheme to sell a piece of heavy machinery he did not possess to a Birmingham company, announced U.S. Attorney Joyce White Vance and U.S. Secret Service Acting Special Agent in Charge Jeffrey Anderson.
An indictment filed in U.S. District Court charges THOMAS CHASE CHILES, 46, with one count of wire fraud and seeks forfeiture of $60,000 to the United States as proceeds of illegal activity.
According to the indictment, the fraud was conducted as follows:
Between Sept. 28, 2009, and Oct. 9, 2009, Chiles sent e-mails to Cowin Equipment Company in Birmingham, advertising a Komatsu PC300LC Excavator for sale and providing detailed specifications on the piece of equipment. Chiles did not own the excavator, nor did he have authority to sell it.
Through further e-mails to a Cowin representative, Chiles negotiated a $59,000 price for the excavator, plus $1,000 to deliver it to the heavy equipment company. Chiles sent subsequent e-mails to Cowin representatives to lull them into believing that he would eventually deliver the excavator and delay them from filing a complaint with the authorities.
On Oct. 9, 2009, Cowin wired $60,000 to Chile’s bank account for the Komatsu excavator, which it never received.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine.
The U.S. Secret Service investigated the case. Assistant U.S. Attorney Chinelo Diké-Minor is prosecuting the case.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent and it is the government’s responsibility to prove guilt beyond a reasonable doubt at trial.
Shiprock Man Pleads Guilty to Using a Firearm in Relation to a Crime of Violence on the Navajo Indian ReservationRead the Press Release
ALBUQUERQUE – Eddie Shirley, 28, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty this morning to using and brandishing a firearm in relation to a crime of violence on the Navajo Indian Reservation. Under the terms of his plea agreement, Shirley will be sentenced to not less than seven years in federal prison.
Shirley was arrested in Dec. 2012, on a criminal complaint charging him and co-defendant, Jerrileta Singer, 32, with the armed robbery of a Sonic Drive-In Restaurant in Shiprock on Nov. 30, 2012. Singer subsequently was arrested in Jan. 2013. The two were then indicted and charged with (1) robbery, and (2) using and brandishing a firearm during and in relation to a crime of violence.
During today’s plea hearing, Shirley entered a guilty plea to Count 2 of the indictment and admitted using a firearm to rob the Sonic Drive-In in Shiprock on Nov. 30, 2012. Shirley acknowledged that a female participated in the robbery and that together they used force, intimidation and violence to take money from the restaurant’s employees.
Shirley has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
Singer has entered a not guilty plea to the indictment and is scheduled for trial on July 1, 2013. The charges in the indictment against Singer are merely accusations and she is presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.Seventeen People Indicted for Conspiracy That Brought Cocaine, Heroin and Marijuana to Youngstown, Akron and ColumbusRead the Press Release
A grand jury returned a 57-count indictment charging 17 people for their roles in a conspiracy that distributed cocaine, heroin and marijuana on the streets of Youngstown, Akron and Columbus, law enforcement officials announced.
Terrance A. Tarver obtained cocaine and marijuana from individuals in Columbus for distribution in Youngstown, Akron and Columbus. Tarver also obtained heroin from sources in Youngtown and Akron for distribution in Youngstown and Akron, according to the indictment.
Tarver was one of 10 people named in a federal indictment filed in April 2012. He has pleaded guilty and is awaiting sentencing.
This indictment details a distribution network of people who obtained drugs from Tarver and then sold them throughout Northeast Ohio.
Count 1 charges all 17 people listed below with conspiracy to possess with intent to distribute cocaine, heroin and marijuana:
Defendant
Residence
Age
Benjamin J. Phillips
Cheraw, South Carolina
36
Youngstown, Ohio
41
Ronald O. Clark
Youngstown, Ohio
47
Phillip D. Whitman
Youngstown, Ohio
37
Gerard B. Balbirsingh
Farrell, Pennsylvania
45
Edward Odem, III
Sharon, Pennsylvania
34
Darryl C. Pippin
Youngstown, Ohio
43
Abdul W. Muhammad, aka Wally
Youngstown, Ohio
41
Clifton T. Hudson
Youngstown, Ohio
40
Dwayne A. Oliver
Youngstown, Ohio
42
Antjuan A. Adkins
Akron, Ohio
37
Edthaniel L. Tarver, aka Lamont
Youngstown, Ohio
37
Anthony J. Walker, aka Prem
Tempe, Arizona
36
Dontae R. Lackey
Columbus, Ohio
35
Quay L. Watkins
Akron, Ohio
35
Brandon M. Williams
Youngstown, Ohio
20
Patrick D. McWhorter
Youngstown, Ohio
21
“This group represents another layer of people who sold drugs throughout the region,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “They profited from other people’s addictions.”
“The individuals arrested this morning represent the second tier of this cocaine, heroin, and marijuana trafficking organization” said Stephen D Anthony, Special Agent in Charge of the FBI’s Cleveland office. “As evidenced by this continuing investigation, the FBI will work with our law enforcement partners to target and eliminate the most significant threats to our communities.”
Lt. Jeff Solic, who leads the Mahoning Valley Law Enforcement Task Force, said: “These types of cases and arrests are only possible because of the tremendous cooperation between local, state and federal law enforcement.”
Counts 2-4 of the indictment charge defendants Benjamin J. Phillips, Abdul W. Muhammad, aka Wally, Brandon M. Williams and Patrick D. McWhorter with maintaining a premises for the purposes of distributing and using controlled substances. Counts 5-57 of the indictment charge the defendants with using a telephone to facilitate drug trafficking.The investigation was conducted under the U.S. Attorney’s Organized Crime Drug Enforcement Task Force (OCDETF) which is part of a national program that seeks to identify, investigate and prosecute significant drug trafficking enterprises by utilizing multiple investigative and prosecution resources.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation, the Drug Enforcement Administration and the Mahoning Valley Law Enforcement Task Force. The case is being prosecuted by Assistant United States Attorneys Nancy L. Kelley and Linda H. Barr.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
San Francisco Resident Sentenced to 24 Months in Prison for Filing False Claims for Tax RefundsRead the Press Release
SAN FRANCISCO - On June 19, 2013, Eric Flentoil pleaded guilty and was sentenced to two years in prison for access device fraud and filing false claims, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigations (IRS-CI) Special Agent in Charge José M. Martinez.
In pleading guilty, Flentoil admitted to filing a false 2011 income tax return using a stolen Social Security number and claiming a tax refund of $2,915. Unknown to Flentoil, the individual to whom the social security number belonged, had made a $40,000 estimated tax payment to the IRS for his 2011 taxes. Therefore, the IRS sent a $40,000 refund check, in the victim’s name, to the address on the false return, which was Flentoil’s home address. Flentoil used the victim’s name and social security number to open a bank account, deposit the $40,000 check, and obtain a debit card to access the funds. From June 1, 2012, through June 11, 2012, Flentoil used the debit card to withdraw funds and make purchases.
Flentoil also filed a false 2011 federal income tax return in his own name, receiving a $2,071 tax refund, to which he was not entitled.
Flentoil, age 31, of San Francisco, was indicted on March 19, 2013. He was charged with access device fraud, filing false claims, and aggravated identity theft. He pleaded guilty to access device fraud and filing false claims.
The sentence was handed down by U.S. District Court Judge Edward Chen following a guilty plea on two counts in violation of filing false claims in violation of Tile 18, United States Code, Section 287 and one count of access device fraud in violation of Title 18, United States Code, Section 1029(a)(2). The Honorable Judge Chen also sentenced the defendant to 3 years of supervised release. Flentoil has been in custody since his arraignment and remains in custody to serve his sentence.
Cynthia Stier is the Assistant U.S. Attorney who is prosecuting the case. The prosecution is the result of a two month investigation by the IRS-CI.
(Flentoil Indictment )
Roswell Man Sentenced to 51 Months in Federal Prison for Unlawful Possession of a FirearmRead the Press Release
ALBUQUERQUE – Xavier Barela, 36, of Roswell, N.M., was sentenced today in Las Cruces Federal Court to 51 months in prison to be followed by three years of supervised release for being a felon in possession of a firearm.
Barela was arrested in May 2012, based on a criminal complaint charging him with being a felon in possession of a firearm and subsequently was indicted on that same charge. The indictment charged Barela with unlawfully possessing a firearm in Chaves County, N.M., on April 21, 2012. At the time, Barela was prohibited from possessing firearms or ammunition because he previously had been convicted of several felony offenses, including receiving and transferring a stolen motor vehicle, possession of a controlled substance, unlawful taking of a motor vehicle and the fraudulent use of a credit card, in the 5th Judicial District Court for the State of New Mexico.
Barela entered a conditional guilty plea to the indictment in Nov. 6, 2012, reserving the right to appellate review of the court’s denial of his motion to suppress evidence.
This case was investigated by the Roswell office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Roswell Police Department, and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.Rochester Man is Sentenced in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Douglas C. Tatner, II, 33, of Rochester, N.Y., who was convicted of possession of child pornography, was sentenced to 48 months in prison and 12 years of supervised release by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that a search warrant was executed at Tatner's former residence on Glide Street in Rochester by members of the FBI's Cyber Crimes Task Force in January 2012. The warrant was issued after a witness reported seeing images of child pornography depicting children 12 years old and younger on the defendant's computer. Tatner admitted to possessing images of child pornography, some of which depicted pre-pubescent minors.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation's Cyber Crimes Task Force, under the direction of Acting Special Agent in Charge Richard M. Frankel which includes the Rochester Police Department, under the direction of Chief James Sheppard.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Rio Grande City Man Heads to Prison for Trafficking More Than 1000 Kilos of MarijuanaRead the Press Release
McALLEN, Texas – Eduardo Ramirez, 59, of Rio Grande City, has been handed a significant sentence following his convictions in Organized Crime Drug Enforcement Task Force (OCDETF) Operation White Line, United States Attorney Kenneth Magidson announced today. Ramirez was convicted by a McAllen Jury on March 8, 2013, following a four-day trial.
Ramirez and others were indicted for conspiracy to possess and possession with the intent to distribute in excess of 1,000 kilograms of marijuana.
“Those that transport large quantities of drugs through the Southern District of Texas on behalf of major drug cartels will be prosecuted to the fullest extent of the law,” said Magidson. “This case is another example of our cooperation with various law enforcement agencies in that effort.”
Today, U.S. District Judge Micaela Alvarez who presided over the trial, handed Ramirez a sentence of 235 months in federal prison to be followed by a five-year-term of supervised release. In handing down the sentence, Judge Alvarez noted that the defendant was a leader in the criminal enterprise to transport the marijuana.
Evidence at trial revealed Ramirez and others agreed to transport approximately 1,567 kilograms of marijuana in a tractor-trailer to other narcotics traffickers based in Houston in September 2011. An aftermarket compartment was built into a trailer that was subsequently used to transport the marijuana, as well as approximately 5,000 kilograms of Mexican charcoal. Documents, recorded conversations and testimony showed Ramirez had provided the cover load, which was to be used to mask the odor of marijuana and dissuade law enforcement officers from searching the trailer. Ramirez was unaware that the driver of the tractor-trailer was an undercover police officer.
On Sept. 25, 2011, agents conducted a controlled delivery of the marijuana. Ramirez and others traveled to Houston in anticipation of the arrival of the marijuana load. Agents off-loaded the marijuana and placed it in a van, which was picked up Sept. 27, 2011, by a member of the conspiracy. Officers with the Houston Police Department (HPD) later stopped the van for a traffic violation, discovered the marijuana and arrested the driver. Later that day, Ramirez paid approximately $30,000 for the transportation of the marijuana.
Ramirez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Vicente Montes and Eduardo Humberto Ramirez, the son of Eduardo Ramirez, are currently fugitives and warrants remain outstanding for their arrest. Anyone with information about their whereabouts is asked to contact Homeland Security Investigations (HSI) at 800-973-2867. They are presumed innocent unless convicted through due process of law.
The OCDETF investigation leading to the criminal charges was conducted in McAllen and Houston by Homeland Security Investigations, Pharr Police Department, Hidalgo County Sheriff’s Office, HPD, Harris County Sheriff’s Department and the FBI.
Assistant United States Attorneys Jesse Salazar and Juan Alanis are prosecuting the case.
Real Estate Broker Who Ran Mortgage Fraud Scheme Sentenced to PrisonRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Sylvia Odia Thomas, 40, formerly of West Chester, Ohio was sentenced to 30 months in prison, three years of supervised release, and ordered to pay $313,021 in restitution to lenders and $95,422.14 to the IRS for crimes she committed as part of a mortgage fraud scheme.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service, announced the sentence handed down today by Senior U.S. District Judge Herman J. Weber.
Thomas pleaded guilty on November 6, 2012 to one count of mail fraud and one count of filing false income tax returns. She committed both crimes in connection with her business as a mortgage broker. “She habitually falsified documentation for loan applications for her clients and failed to report her correct income to the IRS,” Assistant U.S. Attorney Tim Mangan wrote in a memorandum filed with the court prior to sentencing.
Thomas willfully filed false federal income tax returns with the IRS for the 2006 through 2009 income tax years. These federal income tax returns did not include substantial amounts of additional income that was paid to Thomas in the form of broker closing and processing fees that were obtained from brokering and closing client loans. In total, Thomas underreported her gross receipts by $312,882 for the 2006 through 2009 income tax years, resulting in a tax loss of $95,422.14. The Court determined the amount of loss for her mortgage fraud was $313,021.
Thomas operated a home renovation company and later started her own mortgage brokerage business. Eventually, she began writing false income and employment information on loan applications in order to get her clients approved. This practice also involved fabricating false supporting documents that were sent to the lenders. She also engaged in creating false down payments for her clients by making cashier’s checks to look like earnest money from the clients. When agents executed a search warrant at her home, they found numerous cut-and-paste documents related to this fraudulent scheme.
Antonio Weathers, 41, of Cincinnati, Ohio has pleaded guilty to one count of mail fraud and to one count of money laundering in connection with the same mortgage fraud scheme. The guilty plea was entered before Chief U.S. District Judge Susan J. Dlott on April 8, 2013. Weathers faces a maximum prison sentence of 20 years and a fine of up to $250,000. A date for his sentencing has not been set.
According to court documents, Weathers formed a real estate business in which he arranged for the purchase and resale of mostly low income properties. Weathers transferred $42,532.43 in mail fraud proceeds from one bank account to another bank account in the name of Antonio Weathers, d/b/a, KI Enterprises.
“These types of crimes create a significant loss of tax revenue, drive buyers into foreclosure, and leave lenders burdened with bad loans,” said Kathy A. Enstrom, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Criminal Investigation remains committed to pursuing financial investigations into such crimes.”
U.S. Attorney Stewart commended Assistant United States Attorney Mangan who represented the U.S. in the case, and the cooperative investigation conducted by IRS Special Agents and Postal Inspectors.
Postmaster Accused of Embezzling More Than $13,000 in Postal FundsRead the Press Release
PITTSBURGH - A resident of Westmoreland County has been indicted by a federal grand jury in Pittsburgh on a charge of misappropriation of postal funds, United States Attorney David J. Hickton announced today.
The one-count indictment named Lawrence F. Stoken, III, 47, of Export, Pa., as the sole defendant.
According to the indictment, while employed as the Postmaster at the Rural Valley, Pennsylvania Post Office, Lawrence F. Stoken, III embezzled approximately $13,255.90 from the sale of stamps and postal money orders during the period from October 2011 to March 2013.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The United States Postal Service, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Northwest MO Man Indicted for Child Porn, Obscenity after Thousands of Images Found on ComputerRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Newtown, Mo., man has been indicted by a federal grand jury for possessing and receiving child pornography over the Internet and for possessing child obscenity.
Nicholas Alex Dickinson, 31, of Newtown, was charged in a three-count indictment returned by a federal grand jury in Kansas City on Tuesday, June 18, 2013.
The federal indictment alleges that Dickinson received child pornography over the Internet on April 23, 2013. Dickinson is also charged with possessing child pornography and with possessing obscene material – such as cartoons or animation of child pornography that were also obtained over the Internet – on May 2, 2013.
According to court documents, law enforcement officers executed a search warrant at Dickinson’s residence on May 2, 2013 based on a peer-to-peer file-sharing investigation. Officers seized a laptop computer, an external hard drive and other computer media during their search. A forensic examination of the computer and computer media determined that Dickinson had saved thousands of images and/or video files of child pornography, in addition to thousands of files relating to child obscenity.
Prior to the execution of the search warrant, officer’s monitored Dickinson’s online activities. According to court documents, Dickinson used the peer-to-peer file sharing program to offer to share child pornography virtually every day in April 2013.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the Kirksville, Mo., Police Department, the Sullivan County, Mo., Sheriff’s Department 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."North Idaho Man Enters Felony Plea for Illegally Cutting TimberRead the Press Release
COEUR D’ALENE – Norman Leroy Bogart, 54, of Kingston, Idaho, pleaded guilty yesterday in federal court to illegally cutting timber on national forest lands, U.S. Attorney Wendy J. Olson announced. An information charging him with one felony count of willful injury or depredation to property of the United States was filed in United States District Court in Coeur d’Alene on June 17, 2013.
According to the plea agreement, the defendant admitted that between April and October, 2012, he cut and hauled timber illegally from an area within the Idaho Panhandle National Forests, near his home in Kingston, Idaho. The U.S. Forest Service began to investigate after discovering that 40 green trees had been cut within the one area. U.S. Forest Service investigators used a deer camera to capture Bogart’s vehicle traveling to and from the cut location.
On October 3, 2012, the U.S. Forest Service executed a search warrant at Bogart’s residence and seized more than 58 cords of timber cut into firewood. One pile was estimated to be 40 feet long, 10 feet wide and 10 feet tall, according to the plea agreement. Investigators determined that most of the timber was green when cut. Investigators matched some of the larger timber seized from Bogart’s property to several stumps at the cut location within the Idaho Panhandle National Forests.
“We are pleased to see this case prosecuted and want to emphasize that timber theft will not be tolerated on national forest system lands,” said Mary Farnsworth, Idaho Panhandle National Forest Supervisor. “I especially would like to thank our law enforcement officers who invested many hours investigating this case to ensure the public is reimbursed for their losses.”
The charge of willful injury or depredation to property of the United States is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for September 16, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
The case was investigated by the U.S. Forest Service, with the assistance of the Idaho State Police, the North Idaho Violent Crimes Task Force, and the Shoshone County Sheriff’s Office.
New Jersey Man Charged with Enticing A MinorRead the Press Release
Louay Shaman, 30, of Cliffside Heights, New Jersey, was charged by Indictment, unsealed today, with one count of enticing a minor to engage in illegal sexual activity on March 3, 2012, and with one count of transporting a minor interstate on March 4, 2012, with the intent that the minor engage in illegal sexual activity, announced United States Attorney Zane David Memeger. Shaman was arrested today and appeared in court.
If convicted of all charges,Shaman faces mandatory minimum sentence of 10 years in prison with a maximum possible sentence of life imprisonment, a maximum period of supervised release of life with a mandatory minimum of five years of supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Albert S. Glenn and Karen Fox.This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525New Haven Crack Dealer Sentenced to 41 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ROBERT MORRIS, 21, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 41 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
MORRIS is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants and seizures of narcotics and firearms. The investigation revealed that MORRIS conspired with others to distribute crack.
MORRIS was arrested on May 22, 2012, and is currently detained. On February 4, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, cocaine base (“crack”).
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys S. Dave Vatti and Marc Silverman.
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[email protected]Mobile County Woman Pleads Guilty to Aiding and Assisting in the Preparation of False Tax ReturnsRead the Press Release
The United States Attorney, Kenyen Brown announces that Sandra Carter, a 50 year old Theodore resident pled guilty today to one count of falsifying tax returns by claiming business losses and education tax credits for customers when no such losses or credits were justified. While Ms. Carter pled guilty to one violation of Title 26 U.S.C., Section 7206(2), she agreed to pay $144,565.00 in restitution for 17 false returns she filed for tax years 2009 and 2010.
Ms. Carter will be sentenced by United States District Court Judge Kristi Dubose on October 4, 2013. She faces a maximum term of three (3) years incarceration followed by a three (3) year term of supervised release and a fine not to exceed $250,000.00.
The Internal Revenue Service’s Criminal Investigation Division investigated the case and presented it to the U.S. Attorney’s Office for prosecution.
Missouri Woman Sentenced for Sex Trafficking in KansasRead the Press Release
KANSAS CITY, KAN. – A Missouri woman has been sentenced to federal prison for sex trafficking in Kansas, U.S. Attorney Barry Grissom said today.
Danyelle M. Putman, 21, Independence, Mo., was sentenced to 37 months in federal prison. She pleaded guilty to one count of transporting a person in interstate commerce to engage in prostitution. In her plea, she admitted she was arrested Aug. 9, 2012, when the Special Investigations Unit of the Prairie Village Police Department conducted a prostitution sting. An investigator working undercover called a number on an Internet site and arranged with Putman for a woman to meet him in Prairie Village, Kan., for sex.
At approximately 8 p.m. that day, Putman and co-defendant Tony A. Rogers, Jr., left Independence, Mo., with a woman identified in the indictment as K.C., with the intent that K.C. would engage in prostitution. Police took K.C. into custody when Putman and Rogers dropped her off. After Putman and Rogers drove away, they were stopped and arrested.
Co-defendant Tony A. Rogers pleaded guilty and was sentenced to 57 months in federal prison.
Grissom commended the Prairie Village Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Michigan Orthodontist Pleads Guilty to Tax EvasionRead the Press Release
Samuel Daniels, age 54 of Brighton, Michigan, pleaded guilty to Tax Evasion for the year 2008, United States Attorney Barbara L. McQuade announced today. Ms. McQuade was joined in the announcement by Special Agent in Charge Erick Martinez, Internal Revenue Service Criminal Investigation Division.
According to court records, during 2006 through 2009 tax years, Daniels was working as an orthodontist in Brighton, Howell, and Fowlerville, Michigan operating as Samuel Daniels, DDS MS PLLC. During this time period, Daniels misrepresented personal expenditures as business expenses. Daniels knowingly provided the business check register to his CPA after disguising the payments as legitimate business expenses paid to known business vendors. In so doing, Daniels caused the CPA to prepare an incorrect tax return. In addition, Daniels failed to pay over $198,000 in taxes.
According to the plea agreement, Daniels used the business’ gross receipts to pay his home mortgage payment, home real estate taxes, a home equity line of credit, his daughter’s college tuition, credit card expenses for household furniture and jewelry, and other items.
Daniels entered the guilty plea in United States District Court before Judge David M. Lawson.
“By his guilty plea today, Daniels is acknowledging and accepting the consequences for falsifying his tax return and failing to pay almost $200,000 in taxes due,” said Assistant Special Agent in Charge Carolyn Weber.
A sentencing hearing was set by Judge Lawson for October 3 at 3 p.m. The maximum penalty for Tax Evasion is imprisonment of not more than 5 years and a $250,000 fine.
The investigation of this case was conducted by special agents of the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Ross MacKenzie.
Michigan Man Charged and Sentenced for Lacey Act ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Holland, Michigan man has been charged with Lacey Act Violations by an Information filed April 4, 2013.
Donald Israels, age 46, appeared before U.S. Magistrate Judge John E. Simko on June 17, 2013 and pled guilty to Counts I and II the Information. Israels was sentenced to 1 year unsupervised probation, a $5,000 fine, $2,000 in restitution, and $50 special assessment to the Federal Crime Victims Fund.
The charges stem from two incidents occurring in November 2010 and 2011, in which Israels did knowingly transport, sell, receive, and acquire two white-tailed deer in interstate commerce from South Dakota to Michigan. Israels did not have a hunting license for the deer he killed.
The investigation was conducted by the U.S. Fish and Wildlife Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
McLaughlin Woman Charged with Controlled Substance Violations, Child Abuse and NeglectRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota woman has been indicted by a federal grand jury.
Adjoni Jones, a/k/a Adjoni Archambault, age 33, was indicted on June 12, 2013 for Distribution of a Controlled Substance to a Person under the Age of 21, Distribution of a Controlled Substance, and Child Abuse and Neglect. Jones appeared before U.S. Magistrate Judge William D. Gerdes on June 20, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 15 years of imprisonment, a $250,000 fine, or both; at least 4 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and Jones is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Jones was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
McLaughlin Man Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota man has been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury against a child.
Brett Charles Roach, age 25, was indicted by a federal grand jury on June 12, 2013. He appeared before U.S. Magistrate Judge William D. Gerdes on June 20, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is life imprisonment, a $250,000 fine, or both; 5 years of supervised release and an additional 3 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The charge is merely an accusation, and Roach is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Roach was released on bond pending trial. A trial date has not been set.
Maryland Man Pleads Guilty to Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with A Minor and Possession of Child PornographyRead the Press Release
WASHINGTON – Akshay Rajashekar, 19, of Salisbury, Md., has pled guilty to federal charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD) announced today.
Rajashekar entered the guilty plea on June 24, 2013, in the U.S. District Court for the District of Columbia. The Honorable Thomas F. Hogan is to sentence him on Sept. 9, 2013. Rajashekar faces a statutory maximum of 30 years of imprisonment for one count of traveling interstate to engage in illicit sexual conduct and a maximum of 10 years in prison for each of two counts of possession of child pornography, as well as potential financial penalties.
According to the government's evidence, on March 18, 2013, Rajashekar contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Over the next few days, the defendant engaged in online e-mail and instant messaging with the undercover officer ,whom the defendant believed was the father of an under-aged girl. During this period of time, Rajashekar arranged with the undercover officer to meet for the purpose of engaging in sexual acts with that child.
During the communications, Rajashekar also sent the undercover officer six images of child pornography. On March 25, 2013, Rajashekar traveled from College Park, Md. to a pre-arranged meeting place in Washington, D.C. When he arrived, he was arrested.
At the time of his arrest, Rajashekar had a pending case in Wicomico County, Md. for possession of child pornography. One of the two child pornography counts in the plea agreement covers that matter, and the Office of the State’s Attorney for Wicomico County Md. has agreed to dismiss the pending case in Wicomico County at the time of the defendant’s sentencing.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also expressed appreciation for the assistance of Assistant State's Attorney Pamela Correa of the Office of the State’s Attorney for Wicomico County, Md. Finally they commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
13-225Manhattan U.S. Attorney Announces $102 Million Settlement of Civil Forfeiture and Money Laundering Claims Against Lebanese Canadian BankRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Michele M. Leonhart, the Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced today a settlement of a civil forfeiture and money laundering lawsuit brought by the United States against the Lebanese Canadian Bank (“LCB”) and its assets. The Government’s action, filed on December 15, 2011, alleges a widespread, international scheme in which Lebanese financial institutions with links to Hizballah, including the now defunct LCB, used the U.S. financial system to launder narcotics trafficking and other criminal proceeds through West Africa and back into Lebanon. The settlement order requires LCB to forfeit $102 million to the United States. The settlement order was entered in Manhattan federal court today by U.S. District Judge Paul A. Engelmayer.
Manhattan U.S. Attorney Preet Bharara said: “Today’s settlement shows that banks laundering money for terrorists and narco-traffickers will face consequences for their actions, wherever they may be located. This type of money laundering network fuels the operations of both terrorists and drug traffickers, and we will continue to use every resource at our disposal to sever the connection between terrorists, narco-traffickers, and those who fund their lethal agenda.”
DEA Administrator Michele M. Leonhart said: “Regardless of how or where, DEA will relentlessly pursue global drug criminals and their huge profits, in particular those associated with terror networks such as Hizballah. This settlement is significant and addresses the role the Lebanese Canadian Bank played in facilitating illicit money movement from the United States to West Africa to Hizballah-controlled money laundering channels. Drug trafficking profits and terror financing often grow and flow together. One of DEA’s highest priorities will always be to promote U.S. and global security by disrupting these narco-terror schemes and protecting the systems they abuse.”
According to an Amended Complaint filed in Manhattan federal court in October 2012, and other documents filed in the case:
From approximately January 2007 to early 2011, at least $329 million was transferred by wire from LCB and other financial institutions, primarily two Lebanese money exchange houses, to the United States for the purchase of used cars that were then shipped to West Africa. Cash from the sale of the cars, along with the proceeds of narcotics trafficking, were funneled to Lebanon through Hizballah-controlled money laundering channels. LCB played a key role in these money laundering channels and conducted business with a number of Hizballah-related entities. Hizballah is a U.S. Department of State designated Foreign Terrorist Organization, a Specially Designated Terrorist, and a Specially Designated Global Terrorist.
On February 10, 2011, the U.S. Department of the Treasury, Financial Crimes Enforcement Network (“FinCEN”) issued a finding and proposed rule, pursuant to the USA Patriot Act, that LCB is a financial institution of primary money laundering concern, based on, among other things, FinCEN’s determination that there was reason to believe that LCB had been routinely used by drug traffickers and money launderers operating in various countries in Central and South America, Europe, Africa, and the Middle East. FinCEN also determined that there was reason to believe that LCB managers were complicit in the network’s money laundering activities.
Following the FinCEN action, another Lebanese financial institution, Société Générale de Banque au Liban (“SGBL”), acquired most of the assets of LCB. In connection with the purchase, $150 million was placed in an escrow account at Banque Libano Française SAL (“BLF”) in Lebanon. In August 2012, the Government seized $150 million from a BLF correspondent account in the United States based on a provision of U.S. law allowing seizure of such funds as a substitute for the funds held in escrow in Lebanon (the “Seized Funds”).
The settlement order requires LCB to forfeit $102 million of the Seized Funds to the United States. The settlement order also provides that, to settle claims brought by SGBL for $90 million of the Seized Funds, LCB will be required to pay SGBL an additional $12 million, and make provisions for additional payments based on separate agreements between LCB and SGBL. SGBL will also receive the remaining $48 million of the Seized Funds.
In addition, a second settlement order was entered in this action on June 20, 2013, regarding claims against the Hassan Ayash Exchange Company (“Ayash”), one of the Lebanese money exchange houses allegedly involved in the money laundering scheme. Under this settlement order, Ayash will forfeit more than $720,000 to the United States.
The settlement orders resolve only claims relating to LCB, Ayash, and their assets. The civil forfeiture and money laundering action continues against other alleged participants in the money laundering scheme.
Mr. Bharara thanked the DEA for its leadership and praised the New York Organized Crime Drug Enforcement Strike Force for its outstanding work on this investigation, which he noted is ongoing. The DEA’s New York Organized Crime Drug Enforcement Strike Force (the “Strike Force”) is comprised of agents and officers of the U. S. Drug Enforcement Administration, the New York City Police Department, Immigration and Customs Enforcement – Homeland Security Investigations (HSI), the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Secret Service, and the U.S. Marshals Service. The Strike Force is partially funded by the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA), which is a federally funded crime fighting initiative. Mr. Bharara also thanked the U.S. Department of State, the U.S. Department of the Treasury, the Federal Bureau of Investigation, and the New Jersey State Police for their assistance.
This matter is being handled by the Office’s Asset Forfeiture Unit. Assistant U. S. Attorneys Sharon Cohen Levin, Michael Lockard, Jason Cowley, and Alexander Wilson are in charge of the case.
U.S. v. Lebanese Canadian Bank Settlement Order
U.S. v. Lebanese Canadian Bank, et al. Amended ComplaintMan Owing More Than $90,000 in Child Support Pleads Guilty to Failure to PayRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kenneth Fay, age 54, most recently a resident of Missouri, pleaded guilty Monday before U.S. District Court Judge Christopher C. Conner to charges that he failed to pay child support.
According to United States Attorney Peter J. Smith, in November 1993, Fay was ordered to pay child support by the Dauphin County Court of Common Pleas Domestic Relations Section. Fay failed to pay the child support and the case was referred to the federal government after both the state and county exhausted their ability to collect the child support payments from Fay.
Fay was indicted by a federal grand jury in December 2011. At that time, Fay owed more than $90,000 in child support payments.
A sentencing date has not yet been scheduled.
The case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General. Prosecution is being handled by Assistant U.S. Attorney Daryl F. Bloom.
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 this case, the maximum penalty under the federal statute is two years’ imprisonment, 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.
Man Convicted of Sex Trafficking A 15-Year-Old GirlRead the Press Release
ALEXANDRIA, Va. – Ronnie Pierre Holmes, 29, also known as “King,” with no fixed address, pleaded guilty today to a criminal information charging him with sex trafficking of a 15-year-old girl throughout Northern Virginia, Maryland, and Washington, D.C.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Valerie Parlave, Assistant Director in Charge of FBI’s Washington Field Office, and Lt. Col. Edwin C. Roessler, Jr., Acting Chief of the Fairfax County Police Department, made the announcement after the plea was accepted by United States District Judge Liam O’Grady.
“Those individuals who chose to prey on vulnerable juveniles and sexually exploit these children for profit will be prosecuted to the fullest extent of the law,” said United States Attorney Neil H. MacBride. “My office has made the prosecution of these cases a top priority and we will continue to vigorously pursue those who commit these unconscionable and vile crimes.”
“Mr. Holmes pled guilty today to the sexual trafficking of a child,” said Assistant Director in Charge Parlave. “Together with our law enforcement partners, the FBI is committed to tracking down predators like Mr. Holmes to help protect our children from such a horrific crime.”“Sex trafficking crime will not be tolerated in Fairfax County and the Police Department will aggressively fight this crime to protect our great community,” said Acting Chief Roessler. “We thank the United States Attorney’s Office for the Eastern District of Virginia for their partnership in combatting sex trafficking with us in Fairfax County and nationally. This partnership, along with that of our many federal law enforcement partners, will endure to continue making Fairfax County a safe place to live, work, and visit.”
Holmes faces a mandatory minimum term of 10 years in prison and a maximum penalty of life in prison when he is sentenced on September 27, 2013.
In a statement of facts filed with the plea agreement, Holmes admitted that he met the 15-year-old runaway outside of her home and that, within hours of meeting the girl, he had sex with her and started to contact other men to set up “dates” with her. Holmes admitted that he also found sex customers for the victim by posting advertisements on the Internet site www.Backpage.com. Holmes prostituted the victim in Washington, D.C., Maryland, and at various hotels in Alexandria and Fairfax County, Va.
This case was investigated by FBI’s Washington Field Office and the Fairfax County Police Department. Special Assistant United States Attorney Stacey Luck and Assistant United States Attorney, Michael J. Frank, 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.Lewiston Dealer Sentenced to Federal PrisonRead the Press Release
COEUR D'ALENE – John Gilbert Rincon, 41, of Lewiston, Idaho, was sentenced today in United States District Court in Coeur d’Alene to 61 months in federal prison for conspiracy to distribute methamphetamine. U.S. District Judge Edward J. Lodge also ordered Rincon to serve ten years of supervised release, and to forfeit $20,000 in U.S. currency. He pleaded guilty to the charge on December 4, 2012.
According to court documents, beginning July 2011, and continuing through December 22, 2011, Rincon participated in drug transactions, distributing fifty grams or more of a substance containing methamphetamine. Three members of the conspiracy have pleaded guilty and have been sentenced: Robin L. Spencer, April Lynne Lauby, and Jacob J. Custodio.
The case was investigated by the Clearwater County Sheriff's Office, Orofino Police Department, Idaho State Police, and Federal Bureau of Investigation.
Leader of Smuggling Ring Ordered to Federal PrisonRead the Press Release
LAREDO, Texas - Oswaldo Rafael Borrego-Ramos aka “Baldo,” 31, a Mexican national and leader of an international smuggling ring, has been sentenced for recruiting local persons to illegally purchase firearms for his organization, United States Attorney Kenneth Magidson announced today. He pleaded guilty to the firearms conspiracy March 6, 2013, admitting he recruited individuals who acquired firearms, ammunition and firearm accessories from stores in Laredo and then had the items smuggled illegally to Nuevo Laredo, Tamaulipas, Mexico.
Today, U.S. District Judge Marina Garcia-Marmolejo, who accepted the guilty plea, handed Borrego-Ramos a sentence of 60 months, 18 of which will be served consecutively to an existing 78-month sentence he is already serving in another case involving other firearm purchases. He is expected to face deportations proceedings following completion of his 96-month sentence.
Investigators with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Homeland Security Investigations (HSI) began a series of investigations into this firearms trafficking organization and discovered Borrego-Ramos directed the acquisition and smuggling into Mexico of at least 32 known illegal firearms since 2008. At least 18 persons involved in the enterprise have been arrested and prosecuted for their participation.
The investigation involved historical purchases made by co-conspirators and illegally smuggled to Mexico before the federal investigations began. Agents traced at least three of those firearms to crime scenes in Mexico. During this investigation, no firearms were permitted to be exported to Mexico.
Borrego-Ramos has been in custody since his arrest on June 26, 2012, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by ATF and HSI with the assistance of the Laredo Police Department and the Webb County Sheriff’s Department. Assistant United States Attorney Homero Ramirez is prosecuting.
Kansas City Man Pleads Guilty in 10-Day Robbery SpreeRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., man has pleaded guilty to committing a series of robberies over ten days in Kansas City, Kan., Roeland Park and Fairway, U.S. Attorney Barry Grissom said today.
Llewellyn Richard, 45, Kansas City, Kan., pleaded guilty to committing the following robberies:
-- Boost Mobile, 3726 State Avenue, Kansas City, Kan., Dec. 21, 2012.
– Nationwide Cellular, 4314 Rainbow Boulevard, Kansas City, Kan., Dec. 21, 2012.
-- Dollar General Store, 2272 Quindaro, Kansas City, Kan., Dec. 24, 2012.
-- Family Dollar, 1251 Central Ave., Kansas City, Kan., Dec. 25, 2012.
-- Quick Service gas station, 7959 State Ave., Kansas City, Kan., Dec. 25, 2012.
-- Boost Mobile, 7640 State Ave., Kansas City, Kan., Dec. 26, 2012.
-- Cricket Store, 4635 Shawnee Drive, Kansas City, Kan., Dec. 27, 2012.
-- Sally's Beauty Supply, 5020 Roe Blvd., Roeland Park, Kan., Dec 28, 2012.
-- Cricket Wireless store, 840 Minnesota Ave., Kansas City, Kan., Dec. 29, 2012.
-- Dollar General, 2801 S. 47th, Kansas City, Kan., Dec. 29, 2012.
-- Family Dollar, 3129 State Ave., Kansas City, Kan., Dec. 30, 2012.
-- Russell Stover store, 2814 Shawnee Mission Parkway, Fairway, Kan., Dec. 30, 2012.
On Jan. 1, 2013, officers of the Kansas City, Kan., Police Department stopped Richard while he was driving a red GMC pickup. When the officers approached the vehicle, he drove off. He was arrested a short distance away after the pickup crashed.Sentencing is set for Oct. 25. A plea agreement calls for both parties to recommend a sentence of 240 months in federal prison.
Grissom commended the Kansas City, Kan., Police Department and Assistant U.S. Attorney Terra Morehead for their work on the case.
KC Man Sentenced to 30 Years for Distributing MethRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine.
Frank G. Rendon, 44, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to 30 years in federal prison without parole. The court also ordered Rendon to forfeit to the United States $75,000, which represents the proceeds of his illegal drug trafficking.
On May 21, 2012 Rendon pleaded guilty to participating in a conspiracy to distribute 500 grams or more of methamphetamine from Feb. 1, 2006 to May 31, 2010. Rendon admitted that he had an active role in buying and selling methamphetamine with others, including co-defendants Clark L. Vanosdoll, 45, of Lee’s Summit, Mo., and Roxie Boling, 30, of Kansas City, Mo.
Rendon was arrested on Sept. 18, 2007, when Kansas City police officers responded to a call of shots fired at the residence he shared with Boling. Rendon was armed with a shotgun with a pistol grip. Officers executed a search warrant of the residence and seized several plastic bags that contained methamphetamine and a plastic bag that contained marijuana. Officers also found four glass pipes with methamphetamine residue under the couch in the living room, a Western Field .22-caliber rifle, drug paraphernalia (including miscellaneous plastic bags, two electronic digital scales with methamphetamine residue and empty plastic bags with Batman and eight-ball emblems).
Vanosdoll was sentenced on March 29, 2013, to 15 years in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy and to being a felon in possession of a firearm. Boling was sentenced on May 3, 2012, to 10 years in federal prison without parole after pleading guilty to her role in the drug-trafficking conspiracy.
This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the Lee’s Summit, Mo., Police Department, the Kansas City, Mo., Police Department, the Independence Mo., Police Department, the U.S. Drug Enforcement Administration, the U.S. Secret Service and the North Kansas City, Mo., Police Department with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).Judge Sentences Bethlehem Resident to More Than 12 Years for Child ExploitationRead the Press Release
PHILADELPHIA - Niyaz Sainudeen, 42, of Bethlehem, PA, was sentenced yesterday to 151 months in prison for distribution, receipt and possession of child pornography. Federal agents found hundreds of images and dozens of videos depicting child pornography on Sainudeen’s computer during a March 8, 2012 search of his home. In July 2011, Sainudeen engaged in a chat session with an undercover agent from Immigration and Customs Enforcement Homeland Security Investigations. As a result of the chat, Sainudeen gave the undercover agent access to a password-protected folder containing child pornography. After being questioned by agents during the March 8, 2012 search of his home, Sainudeen attempted to flee to his native India and was arrested at JFK Airport. Sainudeen pleaded guilty to two counts of distributing child pornography, one count of receipt of child pornography, and one count of possessing child pornography.
In addition to the prison term, U.S. District Court Judge James Knoll Gardner ordered $10,000 restitution, a $400 special assessment and five years of supervised release.
The case was investigated by Immigration and Customs Enforcement Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Joan E. Burnes.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Judge Sends Felon to Prison for Illegally Possessing PistolRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh felon has been sentenced in federal court to 30 months imprisonment followed by two years supervised release on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Jonathan Menefee, 25, of Pittsburgh, Pa.
According to information presented to the court, on or about Jan. 1, 2012, Menefee, being a convicted felon, illegally possessed a Glock, 9mm pistol. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm.
Assistant United States Attorney Charles A. Eberle prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Menefee. This case was prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
Jal, N.M., Accountant Pleads Guilty to Federal Fraud and Identity Theft ChargesRead the Press Release
ALBUQUERQUE – Roger L. Baeza, 31, of Jal, N.M., pleaded guilty this morning to 78 counts of securities fraud, one count of access device fraud and one count of aggravated identity theft, announced U.S. Attorney Kenneth J. Gonzales, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and Chief Robert W. Shilling of the New Mexico State Police.
Baeza was charged with fraud and identity fraud offenses in an 81-count indictment filed in Oct. 2012. The indictment alleged that Baeza defrauded two Jal-based businesses, Lea Energy Services, LLC, and Fulfer Oil & Cattle Company, LCC, of more than $500,000 between June 2010 and Feb. 2012, while he was employed as the in-house accountant by the owners of the two businesses. Today, Baeza pled guilty to all but one count of the indictment, an aggravated identity theft charge.
In his plea agreement, Baeza admitted from June 4, 2010 to Feb. 27, 2012, he embezzled approximately $311,960.08 from his employers’ companies by issuing checks on company accounts for cash or for goods and services for his personal use. Baeza also admitted that he covered up his fraudulent conduct by modifying the companies’ accounting records to indicate that the checks had been issued for legitimate purposes.
Baeza also admitted that from June 4, 2010 to Feb. 27, 2012, he used a company credit card issued in the names of his employers to receive payments and items of value in the aggregate amount of $189,267.02. Finally, Baeza admitted using his employer’s name and identity in Feb. 2011, to issue and sign a check on a company account in the amount of $5000.00 and using the money for his personal use.
At sentencing, Baeza faces a maximum penalty of ten years in prison on each of the 78 securities fraud and access device fraud charges. On the aggravated identity fraud charge, Baeza faces a penalty of two years in prison to be served consecutive to any sentence imposed on the fraud charges. Under the terms of his plea agreement, Baeza will be ordered to pay $501,927.10 in restitution to the victims of his criminal conduct. Baeza is in federal custody and will remain detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Roswell office of the FBI and the New Mexico State Police, and is being prosecuted by Assistant U.S. Attorney Norman Cairns.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on June 25, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individuals were arraigned:
ANGELA CORSON SMITH, a 32-year-old resident of Billings, appeared on charges of bank fraud, aggravated identity theft, false statements to a bank, and (5) counts of wire fraud scheme. She is currently detained. If convicted of these charges, SMITH faces possible penalties of 30 years in prison, a $1,000,000 fine, and 5 years supervised release on both the bank fraud charge and the false statements to a bank charge. She also faces possible penalties of 20 years in prison, a $250,000 fine, and 3 years supervised release on each charge of wire fraud scheme. In addition, SMITH faces an additional mandatory two year imprisonment, consecutive to any other sentence, for the aggravated identity theft. Assistant U.S. Attorney Jessica T. Fehr is the prosecutor for the United States. The investigation was conducted by the U.S. Secret Service.
GARY LEE PLENTY BUFFALO, a 26-year-old resident of Hardin, appeared on charges of assault with a dangerous weapon and assault resulting in serious bodily injury. He is currently detained. If convicted of these charges, PLENTY BUFFALO faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release on each of the charges. Assistant U.S. Attorney Lori Harper Suek is the prosecutor for the United States. The investigation was conducted by the Bureau of Indian Affairs.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Indictment: Former Insurance Agent Swindled Policy Holders, Retired TeacherRead the Press Release
WICHITA, KAN. – A former insurance agent has been charged in a federal indictment unsealed here today with stealing almost $2 million from policy holders, including a retired teacher known for her philanthropy, U.S. Attorney Barry Grissom said today.
Jason Matthew Pennington, 41, Bel Aire, Kan., is charged in a 51-count indictment alleging the former State Farm Insurance agent defrauded his customers and lied to beneficiaries to cover up the thefts. The counts include wire fraud and attempted wire fraud, money laundering, attempted bank fraud and making false statements to a financial institution. Pennington’s father, James L. Pennington, 65, Wichita, also is charged with four counts of filing false tax returns.
The indictment alleges that one of Pennington’s victims was Marlene Brown, who retired in 1994 following a 37-year career with the Wichita Public Schools where she served as teacher, coach and school administrator. She endowed the Marlene M. Brown Fund for the Department of Counseling, Leadership, Educational and School Psychology in the College of Education at Wichita State University.
The indictment alleges that before she died in October 2009 Brown purchased a life insurance policy from State Farm through Jason Pennington worth more than $1.3 million. She designated the Marlene M. Brown Revocable Trust as the owner and beneficiary of the policy.
In November 2008 Pennington processed a request to obtain more than $99,484 in cash from the policy. He deposited the money into his State Farm account at Home Bank & Trust Company in Wichita, and used the money to pay his personal expenses. In March 2009 Pennington entered into a contract to build a $590,000 home at 7972 E. Caribou Place in Bel Aire. By the time the house was completed in 2010, it cost approximately $650,000.
In loan application papers, Pennington failed to disclose that he was required to make monthly child support and alimony payments and that he had a line of credit and a mortgage. He also claimed as an asset an Individual Retirement Account that in fact belonged to Brown.
In June 2009, Personal Property Memoranda were purportedly created and signed by Brown allocating the percentages her charitable beneficiaries would receive and another bequeathing the remaining money to Pennington and his family and associates. Included was a bequeath of more than $1 million to Pennington.
In the following months, Pennington took money from Brown’s policy and changed the address on Brown’s insurance policy from Brown’s address to his own business address at 11040 W. Central, #108 in Wichita.
After Brown died in October 2009, Pennington collected several bags of documents from her home. He later lied to trust beneficiaries and provided them with false documents to cover up the fact he had taken the bulk of her estate for himself. He told beneficiaries that Brown’s 2002 Lincoln LS automobile had been given to a single mother. In fact, he gave the car to his father, James Pennington. He told beneficiaries that two television sets belonging to Brown were given to a young family. In fact, he planned to give the TVs to his father. He told beneficiaries that a baseball autographed by members of the New York Yankees would be given to Brown’s physician. In fact, he planned to keep the ball. He told beneficiaries that some of Brown’s estate was going to the Kansas Humane Society. In fact, the organization received no money. He told beneficiaries that part of Brown’s estate was going to Wichita State University. In fact, WSU did not receive the money.
Other victims included a couple from Garden Plain, Kan., who purchased a life insurance policy valued at more than $3.4 million through Pennington. Pennington fraudulently processed more than $1 million worth of loan requests even though the Hills were not aware the loans were being applied for in their names.
Upon conviction, the alleged crimes carry the following penalties:
Wire fraud and attempted wire fraud: A maximum penalty of 20 years and a fine up to $250,000 on each count.
Mail fraud and attempted mail fraud: A maximum penalty of 20 years and a fine up to $250,000 on each count.
Money laundering: A maximum penalty of 10 years and a fine up to $250,000 on each count.
Bank fraud: A maximum penalty of 30 years and a fine up to $1 million on each count.
Making a false statement to a financial institution: A maximum penalty of 30 years and a fine up to $250,000.
Filing false tax returns: A maximum penalty of three years and a fine up to $100,000 on each count.The FBI and IRS - Criminal Investigation investigated. Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney Aaron Smith are prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment Alleges Hobbs Act Robbery, Gun and Drug ChargesRead the Press Release
Antonio Jeffcoat, 25, was charged today by indictment with Hobbs Act robbery, using and carrying a firearm during and in relation to a crime of violence and a drug trafficking crime, and possession with the intent to distribute Schedule II narcotics. The indictment charges that the defendant committed these offenses in Philadelphia, Pennsylvania, on or about April 23, 2013.
If convicted of all charges, the defendant faces a mandatory minimum sentence of seven years in prison with a maximum of life in prison, a mandatory minimum of six years of supervised release, a $2,500,000 fine, and a $300 special assessment.
This case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney V. Paige Pratter.Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Illinois Man Charged with Illegally Distributing Peptides and HGHRead the Press Release
PITTSBURGH - A resident of Park Ridge, Ill., has been indicted by a federal grand jury in Pittsburgh on charges of mail fraud, misbranding of drugs, distribution of human growth hormone and money laundering, United States Attorney David J. Hickton announced today.
The 11-count indictment named Ronald J. DeFranco, 54, as the sole defendant.
According to the indictment, DeFranco maintained a website for the illegal distribution of peptides - chemical compounds that require a prescription for dispensation, but which are illegitimately sought by body builders for muscle enhancement. DeFranco deceived the Internet service provider and the FDA by falsely representing on the website that he was selling these substances "for research purposes only . . . not for human consumption." In addition to sales of peptides, DeFranco also allegedly sold human growth hormone (HGH) without the required physician's prescriptions. During the period from May 2010 until January 2011, DeFranco allegedly paid $94,777.40 in Western Union and bank wire transfers to acquire these substances from suppliers in the Peoples Republic of China.
The law provides for a maximum total sentence of 20 years in prison and a fine of $250,000 on each of four mail fraud counts; three years in prison and a fine of $250,000 on each of four misbranding counts; five years in prison and a $250,000 fine on each HGH distribution count; and 20 years in prison and a fine of $500,000 on the money laundering count. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The prosecution arose from the combined efforts of agents with the FDA Office of Criminal Investigations, IRS - Criminal Investigation and the DEA.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Identity Thief SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Maurice Hester, of Milledgeville, Georgia, was sentenced today by the Honorable Marc T. Treadwell in Macon, Georgia, to serve a total of sixty-four (64) months in prison and three (3) years of supervised release following his guilty plea to Filing False Claims Against the Government and Wire Fraud, Aggravated Identity Theft, and Theft of Government Property. The Court ordered Mr. Hester to pay restitution in the amount of $32,129.00 and a $700.00, mandatory assessment fee.
On April 8, 2013, Mr. Hester entered a guilty plea to Filing False Claims against the Government and Wire Fraud by filing false income tax returns and fraudulent claims for refunds, including one claim for a fraudulent refund of over $600,000. In addition, Mr. Hester pleaded guilty to Aggravated Identity Theft by filing tax returns in the names of others and then transmitting false refunds into his own bank accounts. Mr. Hester also pleaded guilty to Theft of Government Property for the false income tax refunds that were deposited into his bank account. The Indictment also charged Mr. Hester with Mail Fraud for unlawfully diverting the mail of another taxpayer, so the he could wrongfully intercept a U.S. Treasury check.
Income verification documents showed that Mr. Hester did not earn the wages he reported on his personal income tax return and the returns were completely false. He fraudulently listed his profession as “authorized agent” when in fact, he was a barber filing illegal tax returns.
“The prison time received by Mr. Hester should serve as a strong warning that tough punishment awaits those who embark on a similar criminal path,” said Veronica Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation. “As the defendant in this case has learned, stealing from the American people will not be tolerated and you will be held accountable.”
“When Mr. Hester stole from the government with his tax and identity theft scheme, he didn’t steal from some faceless entity; he stole from every good, law-abiding tax-paying citizen. We won’t allow our Treasury to be raided, just like we would not allow our personal bank accounts to be robbed, by Mr. Hester or anyone else,” said U.S. Attorney Michael Moore.
The investigation was handled by the United States Secret Service and Internal Revenue Service Criminal Investigation. Assistant United States Attorney Graham Thorpe prosecuted the case for the Government.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Honduran Man Charged in Alien Smuggling CaseRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Honduran man for transporting illegal aliens in the United States and for illegally re-entering the country after having twice been deported last year, announced U.S. Attorney Joyce White Vance and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Special Agent in Charge Raymond R. Parmer Jr.
The indictment filed in U.S. District Court charges ALLAN GUALBERTO MEJIA-PONCE, 34, with transporting illegal aliens on May 17 and with aggravated illegal re-entry after deportation. Mejia-Ponce was deported from the United States on Feb. 13, 2012, and July 24, 2012. The indictment also charges five other people with illegal re-entry after deportation.
“At the time of his arrest, Mejia-Ponce, who previously had been deported from the United States, was transporting 14 individuals who were also unlawfully present in the United States,” Vance said. “Trafficking people across borders and within the United States violates the laws of this country. We are committed to ending this trafficking,” she said.
Indicted along with Mejia-Ponce for illegal re-entry after deportation are:
NELSON LIMA-ARANA, 20, of Guatemala, previously deported Feb. 17; YOLOXOCHITI CASTRO-ANGELES, 21, of Mexico, previously deported April 12; JESUS TORRES-PAREDES, 21, of Mexico, previously deported Feb. 28; JOSE ARIEL GUEVARA-RUIZ, 27, of El Salvador, previously deported Jan. 18; MIGUEL ANGEL RUIZ-GUEVARA, 26, of El Salvador, previously deported March 12, 2006, and Jan. 20, 2010.
The maximum sentence for transporting illegal aliens is 10 years in prison and a $250,000 fine. The maximum sentence for aggravated illegal re-entry after deportation is 20 years in prison and a $250,000 fine.
HSI investigated the case, which Assistant U.S. Attorney Michael W. Whisonant Sr. is prosecuting.
Members of the public are reminded that the indictment contains only charges. A defendant is presumed innocent and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
Heroin Dealer Exiled to 13 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge William D. Quarles, Jr. sentenced Antonio Lamont Johnson, a/k/a Tracey Johnson, age 44, of Baltimore, Maryland, today to 13 years in prison, followed by four years of supervised release, for conspiracy to distribute and possession with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police; Baltimore City State’s Attorney Gregg L. Bernstein; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore Police Commissioner Anthony W. Batts.
“Today's sentencing exiles a heroin distributor and career criminal to federal prison,” stated Karl C. Colder, Special Agent in Charge of the Drug Enforcement Administration, Washington Field Division. “This is drug interdiction at its best. Quick and effective cooperation between our law enforcement partners in conjunction with the utilization of various investigative techniques brought this case to a successful conclusion,” added Colder.
According to his plea agreement, on September 2, 2012, DEA agents stopped a car carrier in El Paso, Texas. A drug detection dog alerted on a vehicle on the carrier, registered in Pikesville, Maryland, for the presence of narcotics. Investigators discovered a hidden compartment in the roof of the vehicle containing 4.6 kilograms of heroin, with a wholesale value of approximately $300,000.
Investigators brought the car carrier and the vehicle to Baltimore and a controlled delivery of the heroin was made on September 6, 2012. Johnson was seen paying the truck driver and then driving the vehicle into Baltimore. Johnson met with a co-conspirator, who took possession of the vehicle and parked it in a secluded section of a parking lot. They accessed the heroin. Agents then approached the vehicle and saw a kilogram open to view next to the co-conspirator, who was seated in the driver’s seat. Johnson and the co-conspirator were arrested.
United States Attorney Rod J. Rosenstein commended the DEA, Maryland Transportation Authority Police, Baltimore County Police Department, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and David I. Sharfstein, who prosecuted the case.
Goodwin Announces Indictment of Mingo County Man on Illegal Firearm Possession ChargesRead the Press Release
Maynard is accused in the April 2013 shooting death of Mingo County Sheriff Eugene Crum
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Tennis Maynard, 37, of Delbarton, Mingo County, W.Va., has been indicted by a federal grand jury sitting in Charleston with possession of a firearm by an individual who had been committed to a mental institution and making a false statement in acquisition of a firearm. Maynard is accused in the April 2013 shooting death of Mingo County Sheriff Eugene Crum.
U.S. Attorney Booth Goodwin said, “My office remains thoroughly committed to keeping guns out of the hands of individuals who cannot legally have them.”
According to the 10-count indictment, Maynard allegedly made a false statement on a Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Form 4473 (or Form 4473) on five separate occasions.
The indictment also alleges that Maynard possessed a firearm on five separate occasions. At all of the times the defendant allegedly possessed a firearm, he had previously been committed to a mental institution.
Maynard faces up to 75 years in prison if he is convicted.
The investigation is being conducted by the ATF. Assistant United States Attorney Steven Loew is in charge of the prosecution.
A Form 4473 is a form that an individual must complete when a firearm is purchased from a federally licensed firearms dealer. Making a false statement on this form is a felony.
The case is being 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.
Note: The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Click here to view a copy of the indictment
Fugitive Armed Robber Who Shot at Deputy United States Marshals Sentenced to 241 Months’ ImprisonmentRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, New York, the Honorable Sandra L. Townes, United States District Judge, sentenced Derome Gray to 241 months in prison for the armed robbery of a post office in Queens, New York, and for shooting at the Deputy U.S. Marshals who ultimately tracked him down and apprehended him.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Charles G. Dunne, United States Marshal for the Eastern District of New York; Philip R. Bartlett, Postal Inspector-in-Charge, United States Postal Inspection Service; and Joseph Anarumo, Jr., Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division.
Early in the morning of June 8, 2007, the defendant and others subdued three Postal Service employees at gunpoint, stole cash from the victims and from several lock boxes, herded the employees into a vault, and fled. An investigation by United States Postal Inspectors quickly identified the robbers, including Gray. The other individuals involved in the robbery were apprehended shortly after the robbery and were convicted of their crimes. Gray, however, fled New York and became a fugitive, hiding in Virginia before returning to New York. For four years, Postal Inspectors and the United States Marshals Service hunted Gray before finally locating him at a residence in Queens, New York, where he had sought safe harbor and support from an associate.
On October 3, 2011, U.S. Marshals and other members of the Regional Fugitive Task Force entered the home to arrest Gray. Gray responded by firing two rounds in the Marshals’ direction, which fortunately were deflected. The Marshals immediately apprehended Gray and an associate without firing a shot. Several firearms, including a cache of semiautomatic handguns and rifles, were seized from the home. Special Agents of the ATF responded to the scene and led the investigation into the events arising from Gray’s arrest.
“With a pistol in his hand, the defendant brazenly invaded a United States Post Office and put the lives of three postal workers in jeopardy. Then, for more than four years, he led investigators on a manhunt up and down the Eastern seaboard. Finally, when confronted by the U.S. Marshals, the defendant tried to shoot his way out, again putting the lives of our public servants at risk. He has now been held to account for his crimes,” stated United State Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the U.S. Marshals, Postal Inspectors and ATF agents for their outstanding work.
The government’s case was prosecuted by Assistant United States Attorneys Seth DuCharme and Justin Lerer.
The Defendant
DEROME GRAY
Alias: “Rome”
Age: 42Fort Thompson Man Charged with Assaulting, Resisting and Impeding Federal OfficersRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota man has been indicted by a federal grand jury.
Patrick B. Wind, a/k/a Patrick Azure, age 21, was indicted by a federal grand jury on June 12, 2013 for Assaulting, Resisting and Impeding Federal Officers. Azure appeared before U.S. Magistrate Judge Mark A. Moreno on June 21, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations and Azure is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Azure was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Fort Dodge Man to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to manufacture and distribute methamphetamine was sentenced June 19, 2013, to eleven years in federal prison.
Randy Feauto, 31, from Fort Dodge, Iowa, received the prison term after a February 22, 2013, guilty plea to one count of conspiracy to manufacture and distribute methamphetamine and one count of possession of a firearm by a felon. On February 6, 2012, Feauto was convicted of delivery of a simulated controlled substance in the Iowa District Court for Buena Vista County.
At the guilty plea, Feauto admitted his involvement from about 2009 through September 2012, in a conspiracy to manufacture and distribute 50 grams or more of actual (pure) methamphetamine in the Fort Dodge, Iowa, area. On two occasions in May 2011, Feauto distributed over 2 grams of actual (pure) methamphetamine to an individual cooperating with law enforcement. Feauto possessed a .380 auto handgun in connection with his drug trafficking offenses. On August 17, 2012, in Fort Dodge, Iowa, law enforcement officers executed a search warrant at Feauto’s residence and officers seized the firearm from between the mattress and box spring in Feauto’s bedroom. Officers also seized a quantity of MSM (a known cutting agent for methamphetamine), marijuana and digital scales.
Feauto was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Feauto was sentenced to 132 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a ten-year term of supervised release after the prison term. There is no parole in the federal system.
Feauto is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Webster County Drug Task Force, Webster County Sheriff’s Office, Fort Dodge Police Department, and Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-3046.
Former Schoolteacher Faces Federal Charges for Orchestrating A $1 Million Ponzi SchemeRead the Press Release
CHARLOTTE, N.C. – A former schoolteacher faces federal charges for orchestrating a Ponzi scheme that took over $1 million from investor victims, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. A criminal bill of information filed on Monday, June 24, 2013, in U.S. District Court charged C. David Wright, 52, of Iron Station, N.C. with one count of mail fraud in connection with the Ponzi scheme.
Greg McLeod, Director of the State Bureau of Investigation (SBI) and Keith Fixel, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS) join U.S. Attorney Tompkins in making today’s announcement.
The filed criminal bill of information alleges that Wright engaged in a scheme and artifice to defraud victims by making a series of false and fraudulent representations, omissions of material facts and deceptive half-truths. According to information contained in the charging document, beginning in August 2008 and continuing through March 2013, Wright executed a Ponzi scheme by inducing victims to invest in a “Commodity Investment Group” based in Cherryville, N.C., which Wright purportedly managed. According to court documents on the record, Wright collected over $1 million from investor victims through false and fraudulent misrepresentations. Court records show that Wright lied to investors by promising a 20-30% return on their investments, over a short period of time, when Wright knew that this return was not possible. Wright also misled his victims by falsely representing to his victims that his Commodities Investment Group would invest money in hedge funds, commodities and Quick Trip stores. Court records indicate that Wright falsely told his victims that the Commodities Investment Group owned a significant number of Quick Trip gas stations and had even sold one for $1.6 million.
According to court records, Wright did not invest the over $1 million he collected from investor victims as promised. Instead, Wright used the money to make Ponzi style payments to other victims and to fund his personal lifestyle, according to court records. In some instances, as filed documents show, Wright took a large percentage of victim money immediately upon the initial deposit. Court records show that Wright was known to carry a significant amount of cash in a black duffel bag. Court records also show that Wright required many victims to invest by cashier’s check. Many local victims would invest by meeting Wright in a parking lot in Cherryville, while out-of-state victims would mail money for investment to Wright’s post office box in Cherryville. According to court documents, over $500,000 in principle owed to the victims has been misappropriated by Wright, and as of March 2013, Wright had less than $1,000 left of the investors’ fund. Wright has agreed to plead guilty to the mail fraud charge.
Wright’s initial appearance and plea hearing have not been set yet by the Court. At sentencing, Wright faces a maximum of 20 years in prison and a $250,000 fine. As part of his plea agreement, Wright has agreed to pay full restitution to his victims, the amount of which will be determined by the Court at sentencing.
In a related action, yesterday the Commodities Futures Trading Commission (CFTC) also filed a civil enforcement action against Wright.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until he is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by USPIS and SBI. U.S. Attorney Tompkins also acknowledged the invaluable assistance of CFTC in this case.
The prosecution is being handled by Assistant U.S. Attorney Kurt W. Meyers of the Western District of North Carolina.
The President’s Financial Fraud Enforcement Task Force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit www.stopfraud.gov.
Former Postal Carrier Indicted for Stealing Cash, Gift Cards from the MailRead the Press Release
MINNEAPOLIS—A federal indictment unsealed late last week charges a former postal carrier with stealing cash and gift cards from the U.S. mail. The indictment, which was filed on June 11, 2013, charges Bobbi J. Ouradnik, age 27, of Hinckley, with one count of theft of mail by postal employee. The indictment was unsealed following Ouradnik’s initial appearance in federal court on Friday, June 21, 2013.
The indictment alleges that from July 2011 and July 3, 2012, Ouradnik stole currency and gift cards from letters and envelopes she was entrusted to deliver. At the time, she was employed as a rural carrier for the Harris Post Office.
If convicted, Ouradnik faces a potential maximum penalty of five years in federal prison. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the United States Postal Service-Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Nathan P. Petterson.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.
Former Pineville Official Sentenced to Federal Prison for EmbezzlementRead the Press Release
Phillips-Ellis stole thousands in federal program aid money
BECKLEY, W.Va. – A former Town of Pineville official was sentenced on June 25 to a year and a half in federal prison in connection with an embezzlement scheme that siphoned a total of more than $80,000 in federal aid intended to support the town’s school safety initiative and a McDowell County housing organization, announced U.S. Attorney Booth Goodwin. Brandee Denise Phillips-Ellis, 30, of Pineville, W.Va., previously pleaded guilty in March to theft concerning programs receiving federal funds. Between March 2009 and December 27, 2011, Phillips-Ellis embezzled federal funds during her employment as the city manager and recorder for the Town of Pineville.
U.S. Attorney Booth Goodwin said, “It’s inexcusable when people abuse a position of trust to line their pockets with money that was intended to support two essentials of a strong community: housing and schools.” Goodwin continued, “Criminals who steal from public coffers are not only breaking the law---they’re hurting communities that count on every dollar to provide and maintain services for their citizens.”
During January 1, 2010 and December 31, 2010, the Town of Pineville received approximately $10,000 in funding under the Safe Routes to School Program, a federal aid program administered by the United States Department of Transportation’s Federal Highway Administration.
Phillips-Ellis illegally took twelve Town of Pineville checks totaling $14,649.83 to pay her husband’s personal credit card bills. The defendant also wrote and cashed reimbursement checks from the Town of Pineville’s accounts and took $3,295.56 for her personal use. Additionally, Phillips-Ellis wrote eleven Town of Pineville payroll checks to herself, totaling $20,427.50. Phillips-Ellis also cashed a Town of Pineville check for $4,569.58 and used the proceeds in connection with the purchase of a personal vehicle.
Phillips-Ellis told investigators that during her employment at SAFE Housing and Economic Development, Inc. (SHED) in McDowell County, she falsified documents in order to receive $36,380 in payments as a vendor that she was not entitled to receive. Phillips-Ellis was a full-time employee at SHED from about April 2006 through May 2009. Phillips-Ellis also worked part-time for the organization from May 2009 until December 2011. SHED is a non-profit organization that provides housing opportunities to low income first-time homebuyers.
In total, Phillips-Ellis admitted that she embezzled a combined total of $80,489.96 from the Town of Pineville and SHED.
The Court ordered the defendant to pay restitution in the amount of $80,489.96.
The investigation was conducted by the West Virginia Commission on Special Investigations. Assistant United States Attorney Eumi Choi handled the prosecution.
This case was prosecuted as part of U.S. Attorney Goodwin’s Small Business Protection Initiative. U.S. Attorney Booth Goodwin announced the Small Business Protection Initiative in November 2010.
Former Hadley Man Sentenced for Drug ConspiracyRead the Press Release
BOSTON – A former Hadley man was sentenced today in U.S. District Court in Springfield for conspiring to distribute more than five kilograms of cocaine.
Pablo Drullard, 32, was sentenced by U.S. District Judge Michael A. Ponsor to 10 years in prison, to be followed by four years of supervised release. In February 2013, Drullard pleaded guilty to conspiring to distribute more than five kilograms of cocaine.Between July 31, 2010, and May 2, 2011, Drullard and others participated in a criminal conspiracy to deliver kilograms of cocaine from Texas to western Massachusetts.
United States Attorney Carmen M. Ortiz, John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kevin O’Regan of Ortiz’s Springfield Office.