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9 August 2013
Three Queens Defendants Convicted of Committing Armed Robberies of Check Cashing StoresRead the Press Release
Following a two-week trial, a federal jury in Brooklyn, New York, today found Edward Byam, Derrick Dunkley, and Akeem Monsalvatge guilty of robbery conspiracy, two counts of robbery, and two counts of using a firearm in connection with those robberies.
The convictions were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York.
The government’s evidence at trial established that the defendants committed two armed robberies of separate Pay-O-Matic check cashing stores in Queens, New York. In 2010, the three defendants stole over $40,000 from a Pay-O-Matic after one of the defendants gained entry into the secure teller area through the roof. Wearing hooded sweatshirts and cloth masks over their faces, the defendants held the victim teller at gunpoint, handcuffed him, and beat him with a metal chair before making off with the stolen cash. In 2012, the defendants robbed yet another Pay-O-Matic check cashing store at gunpoint, this time wearing New York City Police Department jackets, badges, and life-like Hollywood-style special effects masks that concealed their identities and made them appear to be three white men. During this robbery, the defendants gained entry to the secure teller area by showing one of tellers a picture of her own home to indicate they knew where she lived and then forced the other teller on duty to open the locked doors to the teller area, where the defendants held the tellers at gunpoint and stole over $200,000 from the safe and teller drawers.
The government’s evidence included the testimony of the victim tellers who were held up at gunpoint during the 2010 and 2012 robberies, a manager at a different check cashing store who, the evidence showed, was a future intended victim of the defendants, as well as the owner of the company that manufactured the life-like special effects masks used by the defendants during the 2012 robbery. The government’s evidence also included telephone and cell site records placing the defendants at the scene of one of the crimes, DNA evidence, emails, and other documents showing the defendants’ purchases of the disguises used in the 2012 robbery and their purchases of tens of thousands of dollars of luxury items from high-end luxury boutiques.
“Those who would use violence and intimidation to make a quick buck should take this as a lesson: whatever tricks and deception they employ, they will be found and they will be prosecuted to the fullest extent of the law,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the New York City Police Department’s Police Impersonation Unit and the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the agencies responsible for leading the government’s investigation. Ms. Lynch also thanked the United States Marshals Service for their crucial assistance in apprehending these violent criminals.
When sentenced by United States District Judge Raymond J. Dearie, the defendants face a mandatory term of imprisonment between 32 years and life.
The government’s case is being prosecuted by Assistant United States Attorneys Maria Cruz Melendez, Una A. Dean, Tiana A. Demas, and Tyler J. Smith.
The Defendants
EDWARD BYAM, Age: 25
DERRICK DUNKLEY, Age: 25
AKEEM MONSALVATGE, Age: 38
Three Charged with Participating in Mortgage Fraud SchemeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in Hartford has returned an indictment charging three individuals with participating in a mortgage fraud scheme involving the purchase of more than 40 properties throughout Connecticut. The seven-count indictment, which was unsealed today, charges FILIPPOS MILIOS, also known as “Filip,” 54, of Newington, MALGORZATA KARAS-GOLKA, also known as “Margaret,” 45, of Newington, and CARMELINDA MAROTTA, also known as “Linda,” 44, of Manchester, with conspiracy and fraud offenses.
According to the indictment, from approximately June 2005 to at least November 2008, MILIOS, KARAS-GOLKA, MAROTTA and others conspired to commit mail and bank fraud by defrauding banks and mortgage lenders in obtaining dozens of mortgages for the sale of properties owned by MILIOS and KARAS-GOLKA. Some of the loans involved in the scheme were insured through the Federal Housing Administration (“FHA”).
The indictment alleges that the mortgage fraud conspiracy involved the use of straw borrowers, false mortgage applications, false HUD-1 forms, fraudulent down payments, and false verification forms in connection with the purchase of more than 40 houses in Hartford, New Haven and Middlesex counties. As part of the scheme, MILIOS, MAROTTA and others recruited or identified borrowers to purchase properties from MILIOS, KARAS-GOLKA and their co-conspirators. MILIOS is alleged to have made the down payments on behalf of the borrowers recruited to purchase the properties he and his co-conspirators were selling.
The indictment also alleges that MILIOS, KARAS-GOLKA and MAROTTA falsely represented to the lenders that a borrower intended to occupy a property as a primary residence. Part of the conspiracy involved borrowers submitting mortgage applications to purchase multiple properties as primary residences.
The indictment alleges that MILIOS paid money to borrowers, mortgage brokers, and recruiters, including MAROTTA, which was not disclosed to the mortgage lenders. MILIOS and MAROTTA also concealed from the lenders MAROTTA’s involvement in several fraudulent transactions and her receipt of a portion of the seller’s proceeds.
The indictment further alleges that MILIOS engaged in a money laundering conspiracy with Gabriel Serrano, a closing attorney. In the course of many of the fraudulent closings involving MILIOS’s sale to borrowers, Serrano received mortgage proceeds from banks and mortgage lenders. Serrano would frequently disburse some of those proceeds to private lenders who had loaned MILIOS money to purchase those properties.
MILIOS, KARAS-GOLKA and MAROTTA are charged with one count of conspiracy to commit mail and bank fraud, as well as separate counts of bank fraud. Each of these charges carries a maximum term of imprisonment of 30 years. MILIOS and KARAS-GOLKA are also charged with separate counts of mail fraud. Each of these charges carries a maximum term of imprisonment of 20 years.
The indictment also charges MILIOS with conspiracy to commit money laundering, a charge that carries a maximum term of imprisonment of 10 years, and KARAS-GOLKA with making a false statement to federal agents in March 2013, a charge that carries a maximum term of imprisonment of five years.
MILIOS was originally charged by criminal complaint in January 2013.
The three defendants appeared today before U.S. Magistrate Judge Thomas P. Smith in Hartford, pleaded not guilty to the charges and were released on bond.
On August 6, 2013, Serrano waived his right to indictment and pleaded guilty to one count of conspiracy to commit mail and bank fraud, and one count of conspiracy to commit money laundering. He awaits sentencing.
As to MILIOS, KARAS-GOLKA and MAROTTA, Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Department of Housing and Urban Development – Office of Inspector General, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys David T. Huang and Paul H. McConnell.
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(203) 821-3722 [email protected]Sussex County, N.J., Man Admits Distributing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. – A Sussex County, N.J., man today admitted using a computer in his home to distribute images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Albert Rose, 55, of Hampton, N.J., pleaded guilty today before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of distribution of child pornography.
According to documents filed in this case and statements made in court:
Rose admitted distributing images of child pornography via email using a computer located in his residence in February 2010. He also admitted to possessing more than 600 images of child pornography on his computer, which was seized from his residence in February 2012. Rose acknowledged that among the images of child pornography he possessed and distributed were images which depicted minors posing in a sexually explicit manner. Rose was previously charged by complaint with distribution of child pornography in September 2011and has been free on bail since his arrest.
The count to which Rose pleaded guilty is punishable by a mandatory minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison, followed by a mandatory minimum of five years’ supervised release and a $250,000 fine. Sentencing is scheduled for Dec. 2, 2013.
U.S. Attorney Fishman credited special agents of the Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HIS), Newark Division, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense counsel: S. Emile Lisboa Esq., Hackensack, N.J.
Rose Information
Suburban Man Sentenced to 12½ Years in Federal Prison for Transporting Child PornographyRead the Press Release
CHICAGO — A La Grange Park man who had amassed a collection of tens of thousands of images and videos of child pornography was sentenced today to 12½ years in federal prison for transporting child pornography via computer. The defendant, NATHAN ARGER, 34, who was arrested in September 2011 when federal agents searched his residence, has remained in federal custody since he pleaded guilty in August 2012.
Arger was sentenced to 151 months in prison, followed by five years of supervised release, by U.S. District Judge Amy J. St. Eve. He must serve at least 85 percent of his federal sentence before he is eligible for release and there is no parole in the federal prison system. Transporting child pornography carries a mandatory minimum sentence of five years and a maximum of 20 years in prison.
Arger was a part-time employee of Lyons Township High School in La Grange. There were no allegations that he engaged in any illegal activity involving students or the school’s technology equipment.
According to court records, in July 2011, an undercover FBI agent signed onto an account on a peer-to-peer computer network, and observed that an individual using the screen name “Mrdizzle420” was logged into the file-sharing network. The agent browsed Mrdizzle420’s shared directories and downloaded files, which depicted child pornography, including numerous images involving known child victims identified by the National Center for Missing and Exploited Children (NCMEC) as a result of previous unrelated investigations.
FBI agents subsequently linked the shared files to an internet account at Arger’s residence. Ultimately, Arger was found to possess approximately 66,895 images and 2,943 videos of child pornography on a desktop computer and an auxiliary hard-drive. Agents also found non-pornographic photographs of a prepubescent girl who was partially nude and videos that depicted Arger with a different girl.
“[Arger] cataloged and stored a staggering number of images and videos of child pornography, the majority of which involved prepubescent children and some of which were clearly sadistic or masochistic in nature,” the government wrote in a sentencing memo.
The investigation was conducted by the FBI’s Child Exploitation Task Force. The task force is part of a nationwide effort known as the Innocence Lost National Initiative targeting those involved in the commercial sexual exploitation of children in the United States. In Chicago, the CETF is comprised of FBI special agents and officers and investigators from the Chicago Police Department, the Cook County Sheriff's Office, and the Cook County State’s Attorney’s Office.
The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government was represented by Assistant U.S. Attorney Naana Frimpong.
Stevie Marie Anne Vigil Indicted for Purchasing Firearm for Evan EbelRead the Press Release
DENVER – Stevie Marie Anne Vigil, age 22, of Commerce City, Colorado, was indicted by a federal grand jury on August 8, 2013 on one count of knowingly transferring a firearm to a convicted felon, United States Attorney John Walsh, 18th Judicial District Attorney George Brauchler and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Denver Special Agent in Charge Andrew Traver announced.
Vigil was arrested without incident this morning by ATF agents at the Arapahoe County Courthouse. She will make her initial appearance in U.S. District Court in Denver this afternoon where she will be advised of her rights and the federal charges pending against her.
According to the indictment, on March 8, 2013, Vigil knowingly disposed of and transferred a firearm to Evan Ebel, knowing and having reasonable cause to believe that Evan Ebel had been convicted of a crime punishable by imprisonment for a term exceeding one year.
“Transferring a gun to a convicted felon is a serious federal crime, period, full-stop,” said U.S. Attorney John Walsh. “Federal and state authorities are working closely together to ensure that the grave crime in this case is prosecuted to the fullest extent of the law.”
“I am pleased to have the opportunity to participate in this collaborative and cooperative prosecution with U.S. Attorney John Walsh’s office,” said George H. Brauchler, District Attorney for the 18th Judicial District. “Our community is well served by vigorously enforcing the laws that keep guns out of the hands of dangerous criminals like Evan Ebel. Unfortunately, this case highlights the worst case scenario when criminals obtain guns.”
“Straw purchasing is not a victimless crime,” said Denver Special Agent in Charge, Andrew Traver. “The results of this careless act can be devastating to the community, and ATF will take every step to hold those individuals who disregard the federal firearms laws accountable.”
If convicted of transferring a firearm to a felon, Vigil faces not more than 10 years in federal prison, and a fine of up to $250,000.
The indictment is a result of a joint federal and state investigation involving multiple agencies, including: Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Colorado Bureau of Investigation (CBI), El Paso County Sheriff’s Office, the Denver Police Department, the Federal Bureau of Investigation (FBI), the Texas Rangers, the Wise County, Texas Sheriff’s Department, the Texas Department of Public Safety, and the Colorado Department of Corrections.
Vigil is being prosecuted by Assistant U.S. Attorney Richard Hosley, Chief of the U.S. Attorney’s Major Crimes Section, and Special Assistant U.S. Attorney Mark Hurlbert, Assistant District Attorney for the 18th Judicial District.
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
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St. Paul Man Sentenced for Bank FraudRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 37-year-old St. Paul man was sentenced for fraudulently obtaining funds from several financial institutions. On August 8, 2013, United States District Judge David S. Doty sentenced Christopher Terrelle Harness to 81 months in prison on one count of bank fraud and one count of aggravated identity theft. Harness was indicted on November 20, 2012, and pleaded guilty on March 11, 2013.
In his plea agreement, Harness admitted that from October 2007 through July 2012, he fraudulently obtained money from banks. Specifically, he and others, at his direction, opened accounts into which they deposited checks they knew were stolen or not backed by sufficient funds. Then, they made ATM withdrawals from the falsely inflated balances. In total, the victimized financial institutions sustained losses of between $30,000 and $400,000 because of this crime.
This case was the result of an investigation by the U.S. Postal Inspection Service and the Minnesota Financial Crimes Task Force. It was prosecuted by Assistant U.S. Attorneys Tracy L. Perzel and Manda M. Sertich.The Financial Crimes Task Force was established pursuant to state law and is comprised of local, state, and federal law enforcement investigators dedicated to combating the growing problem of cross-jurisdictional financial crimes. The task force, overseen by an advisory board also created under state law, serves the entire District of Minnesota, presenting its cases to county or federal prosecutors, as appropriate.
The task force and the Minnesota U.S. Attorney’s Office want to remind people to protect themselves from identity theft. For more information, visit http://www.stopfraud.gov/protect-identity.html
For more information on how to avoid becoming a victim of identity theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/IdentityTheft.aspxSentences for August 6 – 7, 2013 Northern Arapaho Men Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
Ricardo Rodriguez-Contreras, 30, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on August 7, 2013, for illegal re-entry of a previously deported alien into the United States. Rodriguez-Contreras was arrested in Basin, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Phillip Henry Moralez, 46, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on August 6, 2013, for possession of child pornography. Moralez was arrested in Cheyenne, Wyoming. He received 120 months imprisonment, to be followed by 15 years of supervised release and was ordered to pay a $200.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Julian Lee Grimes, 28, of Kemmerer, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on August 6, 2013, for possession of child pornography. Grimes was arrested in Kemmerer, Wyoming. He received 30months of imprisonment, to be followed by ten years of supervised release and was ordered to pay a$100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Richard Dale Anderson, of Douglas, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on August 6, 2013, for failure to register as a sex offender. Anderson was arrested in Douglas, Wyoming. He received five months imprisonment, to be followed by five years of supervised release and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Jorge Lopez-Trejo, aka Alex Campos, aka Arturo Hernandez, aka Alex Zavala-Lara, 31, of Mexico, was sentenced by United States District Court Judge Scott W. Skavdahl on August 6, 2013, for illegal re-entry of a previously deported alien into the United States. Lopez-Trejo as arrested in Gillette, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Ronald Jay Miller Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on August 9, 2013, before Chief U.S. District Judge Dana L. Christensen, RONALD JAY MILLER, a 56-year-old resident of Helena, was sentenced to a term of:
Prison: 120 months, consecutive to another sentence
Special Assessment: $100
Forfeiture: computer and firearms
Supervised Release: 20 years
MILLER was sentenced in connection with his guilty plea to access with the intent to view child pornography.
In an Offer of Proof filed by Assistant U.S. Attorney Paulette L. Stewart, the government stated it would have proved at trial the following:
From approximately 2011 until October 18, 2012, MILLER accessed visual depictions of children engaged in sexually explicit conduct on his computer.
Montana Probation and Parole conducted a probation search of MILLER's residence on October 18, 2012, in reference to his possession of firearms at his residence. At that time, MILLER's computer and a number of floppy discs were seized.
While looking for information on MILLER's computer and floppy discs for firearm information, law enforcement located an image of a child engaged in sexually explicit conduct. Forensic examination revealed that MILLER accessed images and videos containing children engaged in sexually explicit conduct using his computer and the Internet. The Internet access dates were between approximately June 2011 and October 2012.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that MILLER will likely serve all of the time imposed by the court. In the federal system, MILLER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Montana Probation and Parole.
Raceland Man, Ronald Breaux, Pleads Guilty to Distribution of Child PornographyRead the Press Release
RONALD BREAUX, age 67, of Raceland, Louisiana, pleaded guilty today before U. S. District Judge Nannette Jolivette Brown for a crime involving the sexual exploitation of children, announced United States Attorney Dana J. Boente.
According to court documents, BREAUX used “peer-to-peer” file sharing programs on his computer to search for, download, and share videos and images of children as young as 18-months-old engaging in sexually explicit conduct. On August 14, 2012, BREAUX distributed at least one video involving a girl approximately 8-years-old engaging in sexually explicit conduct to an undercover law enforcement agent. On September 25, 2012, law enforcement officials, led by the State of Louisiana Department of Justice - Office of the Attorney General, executed a search warrant at BREAUX’S residence and seized two computers and five electronic storage devices. A subsequently forensic search of the items revealed that BREAUX had used a series of search terms indicative of child pornography to search for the images and videos. After identifying files of interest, most of which had very explicit titles, BREAUX catalogued the pictures and videos in computer folders he created with names like “young,” “crime,” and “incest.” In total, BREAUX downloaded, viewed, and saved at least 1,485 images and 479 videos of children being victimized.
BREAUX faces a mandatory minimum term of imprisonment of 5 years and a maximum penalty of 20 years, followed by up to a life term of supervised release, and a $250,000 fine. He can also be required to register as a sex offender. Sentencing is scheduled for November 14, 2013, at 10:00 am.
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.”
This case was investigated by agents from the State of Louisiana Department of Justice - Office of the Attorney General. The prosecution of this case is being handled by Assistant United States Attorneys Jordan Ginsberg and Matthew S. Chester.
(Download Factual Basis )
Owner of New York Construction Company Indicted for Tax FraudRead the Press Release
The Justice Department and Internal Revenue Service (IRS) announced that Tomas Olazabal, of Fresh Meadows, N.Y., was arrested today following his indictment in the U.S. District Court for the Eastern District of New York on Aug. 8, 2013, on multiple tax crimes.
According to the indictment, Olazabal owned Tupac Construction Corp., a construction company in Fresh Meadows. As alleged in the indictment, Olazabal used check cashing services to cash a substantial number of checks paid to his construction company for services between 2007 and 2008. He concealed his check cashing activities from his tax return preparers. Accordingly, the gross receipts represented by the checks negotiated at the check cashers were not included as gross receipts on the company’s tax returns.
The indictment alleges that Olazabal filed false 2007 and 2008 corporate income tax returns for Tupac. Olazabal faces a potential maximum sentence of six years in prison and a potential fine of up to $500,000.
A trial date has not been scheduled. An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case was investigated by IRS - Criminal Investigation and is being prosecuted by Trial Attorneys Mark Kotila and Steve Descano of the Justice Department’s Tax Division.
Owner of Ocean City, N.J., Car Dealership Admits Targeting Sellers, Buyers and Lenders in Fraud SchemeRead the Press Release
CAMDEN, N.J. – The president, operator and manager of Harry Klause Cars and Trucks Inc., in Ocean City, N.J., admitted today to perpetrating a scheme to defraud automotive loan lenders and customers who traded in and bought vehicles at his dealership, U.S. Attorney Paul J. Fishman announced.
Harry Klause, 64, of Ocean City, N.J., pleaded guilty to an information charging him with wire fraud. He entered his guilty plea before U.S. District Judge Robert B. Kugler in Camden federal court.
According to documents filed in this case and statements in court:
Klause purchased trade-in vehicles from customers of his auto dealership and applied the purchase price against the price of vehicles those customers bought from the dealership. Though Klause agreed to pay off any existing loan the customers had on the trade-in vehicles, he didn’t do so in a timely way, causing damage to the customers’ credit scores. Klause then sold trade-in vehicles to other customers even though he had neither paid off the loans nor gotten the vehicle titles from the lenders.
Klause steered the buyers of the trade-in vehicles to various lenders to finance the purchases, but didn’t immediately – or ever – send the titles to those lenders. If a customer stopped paying a car loan, the lender would be without recourse to repossess the vehicle.
During his guilty plea proceeding, Klause admitted specific acts of fraud concerning individual transactions.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing before Judge Kugler is currently scheduled for Nov. 15, 2013.
U.S. Attorney Fishman credited special agents from the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to the guilty plea. He also thanked the Northfield, N.J., Police Department, under the direction of Chief Robert James; and the New Jersey Motor Vehicle Commission, Business Licensing Investigative Unit, under the direction of Investigator Thomas Bramley, for their assistance.
The government is represented by Attorney in Charge R. Stephen Stigall of the U.S. Attorney’s Office Camden branch.
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Defense counsel: William J. Hughes Jr., Esq., Atlantic City, N.J.Klause Information
Orthofix Territory Manager Sentenced to Eight Months in Prison for Committing Medicare Fraud and Paying KickbacksRead the Press Release
BOSTON – A Tennessee man was sentenced today in federal court to eight months in prison and ordered to pay $75,000 in criminal fines and forfeiture for committing Medicare fraud and paying kickbacks to health care professionals.
On May 7, 2013, Hunter A. Rigsby, 33, of Knoxville, Tenn., pleaded guilty to health care fraud and paying kickbacks. U.S. District Court Judge F. Dennis Saylor IV sentenced him to eight months in prison to be followed by one year of supervised release. Judge Saylor also ordered Rigsby to forfeit $70,000, pay a fine of $5,000, and pay restitution to victims of his offenses.
Rigsby, a former Territory Manager of Orthofix, Inc., admitted that he committed health care fraud, and paid kickbacks to two separate health care professionals. Between 2005 and 2011, Rigsby sold bone growth stimulator medical devices for Orthofix. Bone growth stimulators are used to assist spinal fusions and to help heal bone fractures that did not heal properly. On dozens of occasions, Rigsby altered patient medical records and forged physicians’ signatures on prescriptions and Medicare Certificates of Medical Necessity to induce the Medicare program to pay for bone growth stimulators that were not covered under program guidelines. Medicare only pays for “long bone” stimulators under certain circumstances; for instance, when at least 90 days have elapsed without clinically significant bone healing. Rigsby was well-aware of these guidelines, having received training on these guidelines at Orthofix. On numerous occasions, doctors in Rigsby’s territory ordered bone growth stimulators that did not satisfy Medicare’s guidelines. When this occurred, Rigsby falsified patient records to make it appear as though the claim was payable under Medicare’s guidelines, when in fact Medicare should not have paid. On some occasions, Rigsby prepared completely falsified orderswhere the physician had not ordered a bone growth stimulator at all.
In July 2009, Orthofix fired Rigsby after discovering his fraud scheme. Immediately thereafter, Rigsby and Orthofix sales personnel devised a scheme to allow Rigsby to continue to submit bone growth stimulator orders to Orthofix through a new front company that Rigsby created. Rigsby concealed his affiliation with the front company so that Orthofix compliance personnel would not detect that he was still doing business with the company. Rigsby continued to submit orders for stimulators, sending the orders in through separate individuals. Even though Rigsby had been fired for falsifying medical records, he continued to manipulate patient medical records and forge physician’s signatures until Orthofix finally severed its relationship with him in 2011. Through his scheme, Rigsby caused Medicare and other federal insurance programs to pay more than $400,000 for bone growth stimulators that should not have been paid because Rigsby falsified claims that were outside of program guidelines.
Rigsby also paid kickbacks to health care professionals to induce them to order Orthofix stimulators. For instance, Rigsby paid the person who was responsible for ordering stimulators at one of the largest medical practices in Tennessee. Rigsby approached this person and asked if he could pay this person in return for steering stimulator orders to Orthofix and Rigsby. The person agreed, and Rigsby left an envelope with $200 in cash at the person’s house. As another example, Rigsby entered into an arrangement to pay a nurse in Morristown, Tenn., each time that the surgeon who employed the nurse ordered an Orthofix stimulator. Rigsby left an envelope of cash ($200-$300) in the back of the nurse’s truck after the surgeon began to order stimulators.
In addition to the Rigsby sentence, the Orthofix investigation has to date resulted in a number of felony charges against employees and contractors of Orthofix, including the following:
- On Dec. 14, 2012, Orthofix was convicted of obstruction of a federal audit and paid approximately $42 million in criminal fines and civil payments, and was sentenced to probation for five years;
- On Jan. 22, 2013, Thomas Guerrieri, the former Orthofix Vice President of Sales, was sentenced to eight months in prison and was ordered to pay $50,000 in forfeiture and fines for paying kickbacks to health care professionals;
- On July 19, 2012, Michael Cobb, a physician’s assistant, was sentenced to six months in prison and six months home confinement and ordered to forfeit $10,000 and pay a $3,000 fine for accepting kickbacks from Orthofix;
- On Jan. 31, 2013, Mitchell Salzman, a former Orthofix Regional Manager, was sentenced to three months of home confinement and one year of probation for committing perjury;
- On Jan. 9, 2013, Derrick Field, a former Orthofix Territory Manager, was sentenced to five months of home confinement as part of a two year probation sentence, in addition to paying $44,000 in forfeiture and fines, for committing health care fraud;
- On Jan. 23, 2013, Michael McKay, a former Orthofix Territory Manager, was sentenced to three months home confinement and one year probation and paid $13,000 in forfeiture and fines for committing health care fraud;
- On Sept. 28, 2012, Brian Racey, a former Orthofix Territory Manager, was sentenced to one day incarceration, six month of home confinement, two years of supervised release, and a $2,500 fine for committing health care fraud; and
- On June 12, 2013, Ilene Terrell, MD, a physician in Virginia, was indicted for making false declarations to a grand jury in Boston. Her trial has not yet been scheduled.
The case was investigated by the Department of Health and Human Services Office of Inspector General. It was prosecuted by Assistant U.S. Attorney David Schumacher of U.S. Attorney Carmen M. Ortiz’s Health Care Fraud Unit.
Oneida, New York - Man sentenced to 217 months imprisonment, to be followed by a three year term of supervised release.Read the Press Release
United States Attorney Richard S. Hartunian announced today the sentencing of an Oneida area man on charges of arson and insurance fraud.
JEFFREY E. TRUMAN, SR., 55, formerly of Oneida, New York, appeared for sentencing today in federal court in Syracuse on charges of aiding and abetting an arson, two counts of mail fraud, and one count of using fire to commit a federal felony. The charges stem from a fire that destroyed the former Oneida Casket Company Factory building in Oneida. In November 2005, TRUMAN, along with two partners purchased the vacant factory buildings for $175,000. On November 12, 2006, five days before an insurance policy was to lapse, the buildings were destroyed by fire. Subsequently, TRUMAN submitted an insurance claim for $4,178,500 in fire related losses. A subsequent investigation determined that the fire had been intentionally set by TRUMAN’s son, Jeffrey Truman, Jr. On November 3, 2010, a jury found that TRUMAN, SR. had aided and abetted his son in committing the arson and subsequently attempted to defraud Erie Insurance Company in submission of his fire claim.
United States District Court Judge Norman A. Mordue sentenced TRUMAN to 217 months imprisonment, to be followed by a three year term of supervised release. TRUMAN was also ordered to make restitution to Erie Insurance Company in the amount of $548,406.55.
Benjamin M. Lawsky, Superintendent of Financial Services, said: “The reckless scheme orchestrated by the defendant placed scores of innocent people in harm’s way and could well have resulted in a horrific tragedy. I commend the Oneida Police Department for their collaboration with DFS on the case and thank the U.S. Attorney’s Office’s efforts to bring the case to a successful conclusion culminating in today’s sentencing.”
The case was investigated by the Oneida City Police Department, the Federal Bureau of Investigation, the Madison County Sheriff’s Department, the New York State Police, the Financial Frauds and Consumer Protection Division of the New York State Department of Financial Services, and, the Oneida Fire Department Cause and Origin Team. The case was prosecuted by Assistant United States Attorney Edward R. Broton and Gwendolyn E. Carroll.
New Jersey Man Sentenced to Ten Years for Receiving Child PornographyRead the Press Release
BOSTON – A Sayreville, N.J. man was sentenced yesterday in federal court in Boston on child pornography charges.
Anthony Scarano, 52, was sentenced by U.S. District Judge F. Dennis Saylor IV to 10 years in prison, followed by five years of supervised release. On May 14, 2013, Scarano pleaded guilty to two counts of receipt of child pornography.
On November 11 and November 24, 2012, Scarano coaxed a 15-year-old Massachusetts girl to send him pornographic videos of herself over the Internet. Scarano met the girl on an Internet chat room and over time groomed the girl for sexual exploitation. Police became aware of Scarano’s crimes after the girl’s guardian found disturbing images of her on her cell phone. At the time of the offenses, Scarano was married and employed as a Senior Content Manager at ThomasNet in New York City.
United States Attorney Carmen M. Ortiz; Kevin M. Niland, Inspector in Charge of the United States Postal Inspection Services; Barnstable Police Chief Paul MacDonald; and Yarmouth Police Chief Frank Frederickson made the announcement today. The case was prosecuted by Assistant U.S. Attorney David G. Tobin of Ortiz’s Major Crimes Unit.
Max Meadows Residents Sentenced on Gun ChargesRead the Press Release
ABINGDON, VIRGINIA – United States Attorney Timothy J. Heaphy announced today that Samuel Robert Conrad, III, 51, and Lynn Spencer Conrad, 53, both of Max Meadows, Va., were sentenced yesterday in the United States District Court for the Western District of Virginia in Abingdon to serve terms of imprisonment for violating federal firearms laws.
Samuel Conrad was ordered to serve 96 months imprisonment for one count of possession of a firearm by a convicted felon. Lynn Conrad was ordered to serve six months imprisonment for providing a firearm to a convicted felon.
According to evidence presented at the guilty plea hearings by Assistant United States Attorney Zachary T. Lee, in September 2008, investigators with the Wythe County Sheriff’s Office executed a search warrant at the Conrad’s residence in Max Meadows during an unrelated investigation. Officers found a number of firearms at the residence which were seized based upon Samuel Conrad’s status as a convicted felon. Through their investigation, law enforcement determined that these firearms had been provided to Samuel Conrad by his wife Lynn Conrad.
The investigation of this case was conducted by the Wythe County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Zachary T. Lee of the United States Attorney’s Office in Abingdon prosecuted the case.
Massachusetts Man Charged with Making Hoax Emergency Services Calls to Elicit Swat Team ResponseRead the Press Release
An Athol, Mass., man has been charged in a criminal information with engaging in a practice known as “swatting,” which involves making hoax emergency telephone calls in order to elicit an armed police response (from a SWAT team) for the purpose of harassing someone believed to be at a specific location.
The announcement was made today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Carmen M. Ortiz of the District of Massachusetts.
Nathan Hanshaw, 22, of Athol, has agreed to plead guilty to the charges in the criminal information filed today in U.S. District Court in Massachusetts. The three-count information charges Hanshaw with making interstate threats, threats to use explosives and threats to use a firearm.
According to court documents, Hanshaw typically claimed during his swatting calls that he was a fugitive who was wanted by the authorities and that he had taken hostages and was armed with weapons, explosives and nerve agents. He demanded cash and a helicopter ride to Mexico and threatened to detonate his bombs and kill his hostages if his demands were not met. He also threatened to kill any law enforcement personnel who arrived at the location. According to court documents, Hanshaw generally claimed to be calling from an address that, unbeknownst to the law enforcement officers responding to the call, was the address of his intended swatting victim.
The information charges that Hanshaw made swatting calls to police departments across the United States, including departments in Denver; Ventura, Calif.; and Waverly, N.Y. In each case, armed police responses ensued. In response to Hanshaw’s swatting call to Ventura, more than 40 local and federal officers arrived at the purported crime scene, a hotel was evacuated and nearby streets were closed for several hours.
The counts of making interstate threats and making threats to use a firearm each carry a maximum penalty of five years in prison. The count of making threats to use an explosive carries a maximum penalty of 10 years in prison.
The case was investigated by the FBI and is being prosecuted by Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam Bookbinder the District of Massachusetts’s Computer Crimes Unit. The Massachusetts State Police and Ventura County Sheriff’s Department were among the law enforcement agencies that assisted in this investigation and prosecution.
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Maryland Epidemiologist Sentenced to Prison After Pleading Guilty to Illegally Shipping Guns to Ghana and Defrauding Social Security AdministrationRead the Press Release
Oklahoma City, Oklahoma – Yesterday, SAMUEL ALPHONSO NIMO, 62, from Owings Mills, Maryland, pled guilty to illegally shipping firearms to the Republic of Ghana and to defrauding the Social Security Administration, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Following the guilty plea, Chief United States District Judge Vicki Miles-LaGrange sentenced Nimo to serve 12 months and one day in prison and pay $27,816.93 in restitution to the Social Security Administration.
According to court filings and information from the plea hearing, from May of 2009 through May of 2011, Nimo participated in illegally shipping at least eight firearms to the Republic of Ghana for resale. In addition, Nimo was receiving SSI benefits for the care of his child for a disability. However, Nimo unlawfully continued to collect SSI benefits from 2008 through 2011, after his child relocated to Germany in 2008 and was no longer entitled to receive benefits.
During the time the offenses were committed, Nimo worked as an epidemiologist for the Oklahoma State Department of Health. He is currently employed by the Baltimore City Health Department in Maryland.
At the combined plea and sentencing hearing yesterday, Nimo pled guilty to illegally shipping firearms to Ghana and to defrauding the Social Security Administration. Chief Judge Miles-LaGrange then sentenced Nimo to serve 10 months in prison on the firearms count and serve 12 months and one day in prison and pay $27,816.93 in restitution to the Social Security Administration on the fraud count.
This case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives and the Social Security Administration Office of Inspector General. The case was prosecuted by Assistant United States Attorney Ashley L. Altshuler.
Manhattan U.S. Attorney Announces $1.7 Million Settlement with Testquest, $2.3 Million Judgment Against Former Testquest Manager, and Filing of Criminal and Civil Charges Against Public School Teacher in Connection with Scheme to Defraud FederalRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Brian M. Hickey, the Special Agent-in-Charge of the Northeastern Region of the United States Department of Education’s Office of Inspector General (“ED-OIG”), today announced various civil and criminal actions relating to a scheme to submit false claims for reimbursement by TESTQUEST, INC. (“TESTQUEST”), an educational services company, in connection with a federally-funded program to provide tutoring services to public school children. Those actions include: (1) the settlement of civil fraud claims previously filed against TESTQUEST for $1,725,000, and admissions of wrongdoing by TESTQUEST; (2) the settlement of civil fraud claims previously filed against MICHAEL LOGAN, a former manager of TESTQUEST, admissions of wrongdoing by LOGAN, and the entry of a $2.3 million civil judgment against him; (3) the filing of a criminal Information against SANDRA ALLEN, a public school teacher, charging her with defrauding the Department of Education in connection with her participation in the billing scheme; and (4) the filing of an amended civil complaint asserting fraud claims against ALLEN and two additional public school teachers, SYLVIA BRATHWAITE and QUENTON GITTENS, for their alleged participation in the billing scheme. U.S. District Judge Louis L. Stanton approved the civil settlements with TESTQUEST and LOGAN yesterday. The criminal Information against ALLEN was filed on August 5, 2013.
LOGAN previously pled guilty to a felony fraud charge in connection with his role in the fraudulent billing scheme before U.S. District Judge John F. Keenan on June 5, 2013.
Manhattan U.S. Attorney Preet Bharara said: “TestQuest was an educational testing services company schooled in fraud and filled with employees who willingly exploited a federally funded program designed to aid students in need. As we’ve stated before, we will make companies and individuals answer for their fraudulent schemes. We are pleased that, with these settlements and the prior guilty plea, TestQuest and Michael Logan have accepted responsibility for their conduct and agreed to pay millions of dollars in damages and penalties.”
ED-OIG Special Agent-in-Charge Brian M. Hickey said: “The Office of Inspector General has a unique and special law enforcement mission – to protect public education funds for America’s eligible students. These settlements and related criminal charges are an example of our continued commitment to this mission. We will pursue all available criminal and civil remedies to safeguard these vital educational development funds.”
According to documents filed in Manhattan federal court and statements made in related court proceedings:
The Supplemental Educational Services Program
Between 2005 and 2012, the New York City Department of Education (“NYCDOE”) received funds from the federal government to pay for Supplemental Educational Services (“SES”), which included after-school tutoring for students attending underperforming public schools. NYCDOE entered into contracts with private entities to provide SES tutoring to students in New York City public schools. Students were eligible to receive SES tutoring if they met certain criteria, such as attending a school that had been identified as needing improvement or restructuring for at least two years. Private entities contracted by NYCDOE to provide SES tutoring were required to have each student who attended a tutoring class sign a daily attendance sheet. The tutor of each class was also required to sign the attendance sheet, certifying that he or she had provided SES tutoring to the students whose signatures appeared on the attendance sheet.
TESTQUEST and the Individual Defendants
From 2005 through 2012 (the “Covered Period”), TESTQUEST contracted with NYCDOE to provide SES tutoring to students in New York City. TESTQUEST provided tutoring at various New York City public schools, including the Monroe Academy of Business and Law/High School of World Cultures (“Monroe”) and the Global Enterprise Academy/Christopher Columbus High School (“GEA”). TESTQUEST received approximately $2.3 million for purportedly providing tutoring at Monroe and GEA during the Covered Period.
Throughout that time, TESTQUEST employed LOGAN to manage its SES program at Monroe and GEA. LOGAN, in turn, recruited teachers from Monroe and GEA to serve as tutors for TESTQUEST’s SES program at those schools, and recent graduates of Monroe and GEA to serve as “aides” and help him run the program. ALLEN, BRATHWAITE and GITTENS were public school teachers employed by TESTQUEST as tutors.
The Billing Scheme
During the Covered Period, TESTQUEST obtained Title I funds by falsely reporting that it had provided SES tutoring to students when, in fact, no SES tutoring had been provided. As part of the scheme, TESTQUEST repeatedly submitted to NYCDOE bills for students who had not actually received any tutoring.
As part of its civil settlements, TESTQUEST admitted that:
- tutors prompted students to sign the daily attendance sheets for SES classes that the students had not attended, including by going to the Monroe cafeteria and instructing students who were in the cafeteria, but who had not received any SES tutoring, to sign the daily attendance sheets;
- tutors signed the instructor certifications on the daily attendance sheets — and thereby certified that they had provided SES tutoring to all of the students whose signatures appeared on the sheets — even though they had not provided SES tutoring to some or all of those students;
- aides also prompted students to sign the daily attendance sheets for tutoring classes that the students had not attended, including by bringing the daily attendance sheets to other after-school activities, such as baseball and basketball practice, and instructing students attending those activities to sign the sheets; and
- aides forged student signatures on the daily attendance sheets.
TESTQUEST further admitted that its daily attendance sheets from the Covered Period falsely reported that many more students had attended its SES tutoring classes than had actually attended. TESTQUEST also admitted that it used the falsified daily student attendance sheets to prepare invoices that it then submitted in connection with its SES tutoring program, and that the invoices ultimately resulted in TESTQUEST being paid federal funds for SES tutoring that it never provided.
LOGAN, who previously pled guilty to criminal charges, admitted as part of his civil settlement that he instructed tutors and aides to falsify entries on the daily attendance sheets. LOGAN further admitted that on multiple occasions throughout the Covered Period, he observed (1) tutors signing the instructor certifications on daily attendance sheets for tutoring that LOGAN knew had not been provided; (2) students signing daily attendance sheets for tutoring classes that LOGAN knew the students had not attended; and (3) aides forging student signatures on daily attendance sheets.
ALLEN, while working as an SES tutor for TESTQUEST, allegedly falsified daily attendance sheets to make it appear that more students had attended TESTQUEST’s SES classes than had actually attended and regularly signed the instructor certifications on daily attendance sheets for tutoring that she had not provided. In addition, in the 2008/2009 academic year, ALLEN allegedly enlisted four students at Monroe to participate in the billing scheme. Specifically, she allegedly directed the four students to find other students at Monroe to sign daily attendance sheets for SES classes that they had not attended. ALLEN is also alleged to have purchased food for the four student “helpers” to reward them for their assistance in the scheme.
BRATHWAITE and GITTENS, who similarly served as SES tutors for TESTQUEST, also allegedly signed the instructor certifications on daily attendance sheets for tutoring that they had not provided.
TESTQUEST agreed to pay the Government $1,725,000 in damages and penalties under the False Claims Act in connection with the fraudulent billing scheme. TESTQUEST also agreed not to participate in any federal procurement or non-procurement transactions for a period of three years.
LOGAN, 48 of White Plains, New York, settled civil claims filed against him, made admissions concerning his conduct, and agreed to the entry of a civil judgment against him in the amount of $2.3 million. In connection with his prior guilty plea, LOGAN faces a maximum sentence of five years, and is scheduled to be sentenced by Judge Keenan on October 9, 2013.
By filing its civil claims against TESTQUEST and LOGAN, the Government joined a private whistleblower lawsuit that had previously been filed against them under the False Claims Act.
ALLEN, 53, of New York, New York, is charged with one count of conspiracy to defraud the federal Government. She faces a maximum sentence of five years.
The civil charges against ALLEN, BRATHWAITE, and GITTENS remain pending.
Mr. Bharara thanked the Office of the ED-OIG for its extraordinary assistance in this case.
The criminal cases are being handled by the Complex Frauds Unit, and Assistant U.S. Attorneys Joseph P. Facciponti and Christopher B. Harwood are in charge of the prosecution. The civil cases are being handled by Christopher B. Harwood of the Office’s Civil Frauds Unit.
The charges contained in the Criminal Information against ALLEN are merely accusations, and she is presumed innocent unless and until proven guilty.
U.S. v. TestQuest Stipulation
U.S. v. Michael Logan Stipulation
U.S. v. Testquest, et al Amended ComplaintLieutenant of Major Mexican Drug Cartel SentencedRead the Press Release
Mario Escamilla, a high-ranking lieutenant of the Fernando Sanchez-Arellano drug trafficking organization, was sentenced today to 35 years in prison for his role as leader of the cartel’s U.S. operations, which included kidnappings and murders.
Escamilla is the 39th of 43 defendants charged in the case in July of 2010 to plead guilty. The original complaint charged that defendants participated in a federal racketeering (RICO) conspiracy involving murder, kidnaping, robbery, drug trafficking and money laundering offenses. As set forth in the complaint, the defendants are members and associates of the Fernando Sanchez Organization (FSO), an offshoot of the Arellano-Felix cartel.
Escamilla pleaded guilty in January of 2012 to the RICO conspiracy and narcotics distribution conspiracy charges. In his plea agreement, he admitted to involvement in three murder conspiracies – all of which were prevented by law enforcement.
In the sentencing memorandum, Assistant U.S. Attorney Todd Robinson wrote that Escamilla targeted people for assassination for frivolous reasons – like stealing a relatively small quantity of marijuana, or for “disrespecting” the cartel leadership.
“Escamilla confirmed through his conduct in this case that he has no qualms about committing murder, no matter how trivial the justification is for doing so,” prosecutors wrote. Because of court-authorized electronic surveillance in this case and the diligence of the law enforcement officers handling this investigation, defendant Escamilla failed in his attempts at killing the above-noted individuals.
In handing down the sentence, U.S. District Judge William Q. Hayes noted that “the conduct of Mr. Escamilla can only be described as aggravated . . . he conspired to murder three people in cold blood and he participated in the trafficking of a significant amount of methamphetamine, one of the most addictive and destructive controlled substances our society must deal with.”
Of the remaining four defendants, two are fugitives, one is believed to be dead, and the lead defendant in the case, Armando Villareal-Heredia, was extradited to the United States on May 23, 2012; his trial is scheduled to begin on October 22, 2013.
Also charged in this case was Jesus Quiñones Marques, the Director of International Liaison for the Baja California Attorney General’s Office. According to court documents, Quinones was aware of the FSO’s illegal activities and used his position to obtain confidential law enforcement information for the use of the FSO. According to his plea agreement, he was involved in making arrangements to have various rivals of the FSO arrested and detained by Mexican law enforcement officials. He was sentenced to 97 months in prison in September of 2012.
This case was the result of a long-term investigation conducted by the multi-agency San Diego Cross Border Violence Task Force (CBVTF). The CBVTF was formulated to target those individuals involved in organized crime-related violent activities affecting both the United States and Mexico. Law enforcement personnel assigned to the CBVTF made extensive use of courtauthorized wiretaps and other sophisticated investigative techniques to develop the significant evidence which led to the charges in this case.
United States Attorney Duffy praised the Organized Crime Drug Enforcement Task Force (OCDETF) for the coordinated team effort in the culmination of this investigation, “Operation Luz Verde.”
Agents and officers from the Federal Bureau of Investigation, San Diego Police Department, Drug Enforcement Administration, San Diego Sheriff’s Office, Chula Vista Police Department, U.S. Marshals Service, Bureau of Alcohol, Tobacco and Firearms, San Diego District Attorney’s Office, and California Department of Justice participated in this OCDETF investigation. The OCDETF program was created to consolidate and utilize all law enforcement resources in this country’s battle against organized crime and major drug trafficking organizations.
DEFENDANT Case Number 10CR3044-WQH Mario Escamilla SUMMARY OF CHARGESTitle 18, United States Code, Section 1962(d) - Conspiracy to Conduct Enterprise Affairs
Through a Pattern of Racketeering Activity (RICO conspiracy)
Maximum penalties: Life in prison, $250,000 fineTitle 21, United States Code, Sections 846 and 841(a)(1) - Conspiracy to Distribute Controlled Substances
INVESTIGATING AGENCIES
Maximum penalties: Life in prison, $10,000,000 fineFederal Bureau of Investigation
Chula Vista Police Department
San Diego Police Department
Drug Enforcement Administration
San Diego Sheriff’s Office
U.S. Marshals Service
Bureau of Alcohol Tobacco and Firearms
California Department of JusticeLaw Enforcement Officials Announce Results of Southern W.va. Sex Offender Registration Compliance BlitzRead the Press Release
Operation Coal Dust found 10 sex offenders out of compliance
LOGAN COUNTY, W.Va. – A major two-day law enforcement blitz aimed at verifying compliance of more than 200 registered sex offenders currently residing in three southern West Virginia counties resulted in numerous arrests, U.S. Attorney Booth Goodwin, U.S. Marshal John D. Foster, and West Virginia State Police Superintendent Col. Jay Smithers announced today during a press conference in Chapmanville, W.Va.
The initiative, known as Operation Coal Dust, is a multi-agency law enforcement effort targeting registered sex offenders to determine individual compliance with the Sex Offender Registration and Notification Act, also known as SORNA. Led by the U.S. Marshals Service’s Cops United Felony Fugitive Enforcement Division (CUFFED), Operation Coal Dust targeted 209 registered sex offenders and found a total of 10 individuals out of compliance within the Southern District of West Virginia during compliance checks conducted by law enforcement on Tuesday and Wednesday (Aug. 6-7) of this week.
U.S. Attorney Booth Goodwin said, “Registering as a sex offender is not optional. It’s not something that offenders can simply put on the back burner or casually get around to completing whenever they feel like it. It’s mandatory.” Goodwin continued, “I’ve made prosecuting sex offenders who violate federal registration requirements one of my office’s top priorities. Today I want to reiterate that message: If you are out of compliance, we will track you down and we will bring you to justice.”
Operation Coal Dust was initiated by West Virginia State Police members based in Boone, Lincoln and Logan counties, along with the U.S. Marshals Service’s CUFFED Division. The two-day law enforcement sweep targeted Boone, Lincoln and Logan counties. Out of the 209 compliance checks performed in those specific counties, three arrests were made by police with more likely to come.
“One registered sex offender out of compliance is one too many,” U.S. Marshal John Foster said. “The U.S. Marshals Service is thoroughly committed to tracking down fugitives who attempt to sidestep the law.”
West Virginia State Police Superintendent Col. Jay Smithers said, “Efforts like Operation Coal Dust are extremely important. This particular undertaking is another tool that law enforcement has used to reinforce our commitment to safe communities throughout southern West Virginia.”
In December, a similar law enforcement sweep known as Operation River Cities was initiated in Cabell, Mingo and Wayne counties. As a result of the 299 compliance checks conducted as part of Operation River Cities, 18 arrests were made by law enforcement.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006 (Public Law 109-248). SORNA provides a comprehensive set of minimum standards for sex offender registration and notification in the United States.
Jamie Lynn Strosky and Homar Renova-Castillo Plead Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on August 8, 2012, before U.S. District Judge Sam E. Haddon, JAMIE LYNN STROSKY, a 33-year-old resident of Shepherd, and HOMAR RENOVA-CASTILLO, a 36-year-old resident of Tucson, Arizona, pled guilty.
STROSKY pled to conspiracy to possess with intent to distribute methamphetamine and distribution of methamphetamine.
RENOVA-CASTILLO pled to conspiracy to possess with intent to distribute methamphetamine and illegal reentry of a deported alien.
Sentencings have been set for December 9, 2012. They are currently detained.
In Offers of Proof filed by Assistant U.S. Attorney Brendan P. McCarthy, the government stated it would have proved at trial the following:
RENOVA-CASTILLO, an alien and citizen of Mexico, was previously convicted in 2000 in Yellowstone County for felony criminal endangerment. RENOVA-CASTILLO was then deported from the United States on January 31, 2002, and left through El Paso, Texas. RENOVA-CASTILLO was subsequently found in the United States. Specifically, on November 19, 2012, RENOVA-CASTILLO was pulled over in a motor vehicle near Park City by law enforcement.
In August of 2012, agents with the Eastern Montana High Intensity Drug Trafficking Area Task Force (EMHIDTA) began investigating the sale of methamphetamine in Billings by STROSKY and RENOVA-CASTILLO.
On August 22, 2012, agents spoke with an individual identified here as "D.N." "D.N." stated that he had made two trips to Idaho with RENOVA-CASTILLO to pick up methamphetamine. "D.N." estimated that they picked up two pounds of methamphetamine each time. "D.N." said that a woman named Jamie was RENOVA-CASTILLO's "right-hand girl."
On September 6, 2012, agents met with a confidential informant (CI) who provided information about STROSKY. The CI stated that STROSKY had been selling methamphetamine since 2000. The CI indicated that STROSKY went to Idaho to obtain methamphetamine. The CI stated that STROSKY got her methamphetamine from a Mexican male named Homar. The CI indicated that approximately two months prior, STROSKY met with RENOVA-CASTILLO and she was "fronted" one ounce of methamphetamine.
On November 6, 2012, the CI met STROSKY at a residence in Billings. STROSKY sold the CI a quarter (1/4) ounce of methamphetamine for $550. STROSKY told the CI that she was paying $21,000 for one pound of methamphetamine. The methamphetamine was later tested at the DEA lab and the actual weight was 7.0 grams.
On November 8, 2012, the CI and STROSKY met in a parking lot in Billings Heights, and the CI purchased methamphetamine from STROSKY for $550. The methamphetamine was later tested at the DEA lab and the actual weight was 6.7 grams.
On November 14, 2012, the CI met STROSKY at STROSKY's residence in Shepherd. The CI purchased meth from STROSKY for $550. The methamphetamine was later tested at the DEA lab and the actual weight was 6.6 grams. Additionally, STROSKY told the CI that she recently had one pound of methamphetamine stolen from a stash house.
On December 7, 2012, the CI made another purchase of methamphetamine from STROSKY at a location in Billings. The methamphetamine was later tested at the DEA lab and the actual weight was 6.8 grams.
On December 11, 2012, STROSKY told the CI that she planned to re-up with "her guy" in the next few days.
On December 21, 2012, agents spoke with "K.V." "K.V." admitted that she stole the pound of methamphetamine that STROSKY kept at her "stash house". "K.V." said that she was told by another individual that "K.S." was "babysitting" the methamphetamine at "K.S.'s" residence in the Billings Heights for STROSKY. "K.V." stated that around November 12, 2012, she and her boyfriend broke into "K.S.'s" residence and stole a safe from the closet in the bedroom. Inside the safe, "K.V." found two bags of methamphetamine, $100 in cash and two watches.
The CI made additional purchases of approximately 1/4 ounce of methamphetamine from STROSKY on January 8th, 22nd, and 29th of 2013 and April 3, 2013.
On February 3, 2013, RENOVA-CASTILLO and his wife were stopped in a motor vehicle near Wickenburg, Arizona and RENOVA-CASTILLO was subsequently arrested. In a statement provided to law enforcement, RENOVA-CASTILLO indicated that he has purchased drugs from his source in Las Vegas, Nevada. He admitted that on two occasions he transported cocaine and methamphetamine from Las Vegas to Billings.
STROSKY faces possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $5,000,000 fine, and 4 years supervised release on each charge.
RENOVA-CASTILLO faces possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $5,000,000 fine, and 4 years supervised release on the conspiracy to possess with intent to distribute methamphetamine charge; and possible penalties of 2 years, a $250,000 fine, and 1 year supervised release on the illegal reentry charge.
The investigation was conducted by the Federal Bureau of Investigation Task Force.
Guilty Verdict Reached in Trial Against Drug DealerRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced the conviction of William Campbell, age 62, of Woodville, Georgia, after a three day jury trial before the Honorable C. Ashley Royal, Chief United States District Court Judge for the Middle District of Georgia in Athens, Georgia on August 8, 2013.
Mr. Campbell was convicted on one count of conspiracy to distribute and one count of actual distribution of crack cocaine, a Scheduled II controlled substance.
Testimony at trial revealed that Mr. Campbell was involved in a drug dealing enterprise from January 1995 through September 2012 in the Woodville, Greene County, Georgia area, where he dealt in crack cocaine. The evidence showed that Mr. Campbell would receive orders for crack cocaine from interested buyers and then direct them to where the purchases could be made.
Mr. Campbell faces a minimum mandatory sentence of five (5) years to a maximum forty (40) years imprisonment on the charge of distribution of crack cocaine and up to five (5) years imprisonment on the conspiracy charge.
Sentencing for Mr. Campbell will be set by the Court at a later date.
The case was investigated by the Greene County Sheriff’s Office. Assistant United States Attorneys Tamara Jarrett and Julia Bowen 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.
Gary Lee Plenty Buffalo Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on August 8, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, GARY LEE PLENTY BUFFALO, a 26-year-old resident of Hardin and an enrolled member of the Crow Tribe, pled guilty to assault resulting in serious bodily injury. Sentencing has been set for November 2, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On January 26, 2013, PLENTY BUFFALO was picking up the victim from work. PLENTY BUFFALO yelled at the victim and began to speed away as she entered PLENTY BUFFALO's vehicle. The argument arose from PLENTY BUFFALO's suspicion that the victim was "acting cute" around other men. As PLENTY BUFFALO drove over a bridge, he continued to yell at her and jerked the steering wheel from side-to-side. The vehicle rolled and the victim was ejected from the passenger seat.
PLENTY BUFFALO waved down two males to help. The two males observed the victim in a ditch unable to move and called the police to report the accident. Police and medical personnel arrived and took the victim to the hospital.
The victim suffered several pelvic fractures. The injuries she suffered met the criteria for serious bodily injury.
PLENTY BUFFALO faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the Bureau of Indian Affairs.
Four More Defendants Plead Guilty in Staged Automobile Accident SchemeRead the Press Release
92 defendants have been charged to date in Operation Sledgehammer I-VI
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Jeff Atwater, Florida Chief Financial Officer, and Dave Aronberg, State Attorney, Office of the State Attorney for Palm Beach County, announced that defendants Dr. Aaron Freedlander, 50, of Weston, a chiropractic doctor, Abner Llenderrozo, 30, of Hollywood, a licensed massage therapist, Daviel Castro Martinez, 26, of West Palm Beach, and Elias Munguia, 41, of Miami, pled guilty this week for their participation in a staged automobile accident scheme and fraudulent chiropractic clinic scheme that resulted in the theft of millions of dollars from Florida’s automobile insurance companies and Florida drivers.
The sentencings for all four defendants will occur at a later date to be set by U.S. District Judge Kenneth A. Marra in West Palm Beach.
Each of the defendants pled guilty to one count of conspiring to commit mail fraud, in violation of Title 18, United States Code, Section 1341, all in violation of Title 18, United States Code, Section 1349, and a number of counts of mail fraud, in violation of Title 18, United States Code, Sections 1341 and 2. Some of the defendants also pled guilty to conspiring to commit money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1), all in violation of Title 18, United States Code, Section 1956(h); and money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1)(A)(i), 1956(a)(1)(B)(i), 1956(a)(1)(B)(ii), and 2.
For each count of conspiracy to commit mail fraud, substantive mail fraud, conspiracy to commit money laundering, and substantive money laundering the defendants face a possible maximum statutory sentence of 20 years in prison. Restitution to the victims of the offenses is mandatory, and the four defendants have agreed that they must pay in excess of $2,000,000 of restitution, beginning with partial payments totaling $33,750 at the time of sentencing.
According to court documents, between approximately October 2006 and December 2012, members of the conspiracy staged automobile accidents and thereafter caused the submission of false insurance claims through chiropractic clinics they controlled. To execute the scheme, the true owners of the chiropractic clinics, including defendant Munguia, recruited individuals, who had the medical or chiropractic licenses required by the state to open a clinic, to act as “nominee owners” of the clinics. Members of the conspiracy, including defendant Castro Martinez, also served as recruiters, who found individuals, whom they referred to as “Perro” and “Perra,” to participate in the staged accidents. Members of the conspiracy, including defendant Castro Martinez, also were used to help the clinics launder the insurance proceeds. The defendants also hired complicit chiropractors and therapists, including defendants Freedlander and Llenderrozo, who prescribed and billed for unnecessary treatments and/or for services that had not been rendered. Thereafter, complicit clinic employees prepared and submitted claims to the automobile insurance companies for payment for these unnecessary or non-rendered services. Twenty-one clinics participated in this scheme.
Starting with Operation Sledgehammer I in June 2011 and including the defendants charged in Operation Sledgehammer VI, 92 defendants have been charged for their participation in this automobile insurance fraud scheme. Of those 92 defendants, 56 have been charged federally by the U.S. Attorney’s Office, resulting in court-ordered restitution of more than $5 million to the defrauded insurance companies. Thirty-six defendants have been arrested by the Florida Department of Insurance Fraud for prosecution by the Palm Beach County State Attorney’s Office.
Mr. Ferrer commended the efforts of the FBI, IRS-CI, the Florida Department of Insurance Fraud, the Palm Beach County State Attorney’s Office, and the Greater Palm Beach County Health Care Fraud Task Force for their outstanding work in this case. Mr. Ferrer also recognized the National Insurance Crime Bureau (NICB) for its collaboration and assistance in this investigation. The federal cases are being prosecuted by Assistant U.S. Attorney A. Marie Villafaña and the state cases are being prosecuted by the Palm Beach County State Attorney’s Office.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Texas Health and Human Services Commission Investigator Sentenced to Federal PrisonRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A former investigator for the Texas Health and Human Services Commission was sentenced to federal prison for theft violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Melva Darlene Blakemore, 62, of Diboll, Texas, pleaded guilty on March 26, 2013 to theft of federal funds and was sentenced to 12 months in federal prison today by U.S. District Judge Marcia Crone. Blakemore was also ordered to pay $27,208 in restitution.
According to information presented in court, while employed as an investigator with the Texas Health and Human Services Commission, part of Blakemore’s job duties entailed her contacting individuals to advise them they could be indicted and prosecuted for receiving overpayments of benefits from federally funded programs, such as the Supplemental Nutrition Assistance Program, (also known as SNAP or the food stamp program). Blakemore advised numerous beneficiaries that no charges would be filed against them if they agreed to repay the overpaid benefits directly to Blakemore in cash. Blakemore utilized this scheme on multiple occasions to obtain funds from individuals who had received overpayments.This case was investigated by the Nacogdoches County Sheriff’s Office, the Texas Rangers, the Texas Health and Human Services Commission – Office of Inspector General and the FBI, and was prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Former Postal Worker Arrested for Stealing Video Games from the MailRead the Press Release
BOSTON - Federal charges against a former postal worker from Dorchester were unsealed today in U.S. District Court.
On July 30, James L. White, 38, was indicted for theft of mail by a postal employee. It is alleged that from July through November 2012, White, while working as a mail handler at the Boston General Mail Facility, stole GameFly video games from the mail. White was arrested today and his initial appearance is at 2 p.m.
The offense with which White is charged has a maximum penalty of five years in prison, followed by three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and Rafael Medina, Special Agent in Charge of the United States Postal Service, Office of Inspector General for the Northeast Area Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption and Special Prosecutions Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Portsmouth Sheriff’s Office Sergeant Charged with Conspiracy, Federal Programs Bribery, Attempted Extortion, and False StatementsRead the Press Release
A former sergeant in the Portsmouth Sheriff’s Office (PSO) was indicted yesterday by a federal grand jury in the Eastern District of Virginia for accepting bribes in exchange for favors and referrals, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Neil H. MacBride of the Eastern District of Virginia.
The indictment charges Melvin Hike, 65, of Portsmouth, Va., with one count each of conspiracy, federal programs bribery, attempted extortion under color of official right, and false statements. He faces a maximum penalty of 20 years in prison for the attempted extortion, 10 years in prison for the federal programs bribery, and five years in prison each for the conspiracy and false statements. Hike also faces a maximum fine of $250,000 for each count. The indictment was unsealed following Hike’s arrest this morning.
According to the indictment, from 2008 to 2012, Hike was a PSO sergeant assigned to the warrant squad or to provide security in the Portsmouth Circuit Court. Person A was a bail bondsman based in Portsmouth whose income depended on the number of arrestee clients he served. At various times between 2008 and 2012, Person A gave Hike cash payments, and in exchange Hike referred arrestees to Person A as prospective clients.
The indictment also alleges that in or about June 2010, Hike, acting under color of official right as a PSO sergeant, obtained a gift card valued at $250 to which he was not entitled, in exchange for his assistance in getting an arrestee released on bond and assigned a bondsman.
On or about January 27, 2012, Hike allegedly made false statements to FBI agents investigating his conduct. According to the indictment, Hike stated that he had never accepted money from any bondsman, that he had never referred any arrestees to a bondsman, and that he had never accepted anything of value from an arrestee, knowing that all three statements were false.
An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
This case was investigated by the FBI. Trial Attorneys Peter Mason and Monique Abrishami of the Public Integrity Section in the Justice Department’s Criminal Division and Special Assistant U.S. Attorney Amy E. Cross of the Eastern District of Virginia are prosecuting the case.Former Heber City, Utah, Resident Sentenced to Prison for Filing False Claims for Tax RefundsRead the Press Release
SALT LAKE CITY – April J. Rampton, 42, formerly of Heber City, Utah, was sentenced Thursday to 21 months in prison for filing false claims for income tax refunds. U.S. District Judge Dee Benson also ordered Rampton to pay $230,678.36 in restitution to the IRS and to serve three years of supervised release upon her release from prison.
Rampton was convicted at trial in December 2012 of nine counts of filing false claims for refund. According to the indictment and the proof at trial, in July 2011, Rampton filed a false individual income tax return, based on false Forms 1099-OID, which sought a refund of more than $225,000. On these false Forms 1099-OID, Rampton listed items of debt, such as her home mortgage and credit cards, as if the bank or loan holder had withheld the entire amount of her debt as a federal income tax payment. Rampton received a refund check from the IRS, photocopied the check, and showed it to friends and family members. Rampton then began preparing returns for friends, family members, acquaintances and strangers, all using false Forms 1099-OID that sought tax refunds corresponding to their debts.
This case was investigated by IRS-Criminal Investigation and prosecuted by Trial Attorneys Michael Romano and Stuart Wexler of the Justice Department’s Tax Division.
Former Georgia Tax Return Preparers Sentenced for Tax FraudRead the Press Release
The Justice Department and the Internal Revenue Service (IRS) announced that former professional tax return preparers Greene Wylie Sheppard, Sabrina Johnson-Lavant and Chandra Henderson were sentenced this month to serve 56 months, 8 months, and 18 months in prison, respectively, for conspiring to defraud the United States by filing false tax returns in order to receive fraudulently-inflated refunds for their clients. In addition to conspiracy, Sheppard was also sentenced for aggravated identity theft. Sheppard was sentenced on July 11, 2013, and Johnson-Lavant and Henderson were sentenced yesterday.
According to court documents, Sheppard owned and operated Quick Tax, a tax preparation business in Cordele, Ga. He conspired with his employees Johnson-Lavant and Henderson to obtain higher refunds on clients’ returns by falsely inflating clients’ wages in order to exploit certain tax credits. The co-conspirators sold other people’s identifying information to their clients, and these other identities would then be claimed as dependents on their tax returns in order to manipulate the size of the refund. The three return preparers acquired dozens of identities by purchasing them. They maintained notebooks that kept track of the identities and how much clients owed them for the false dependents. Over the course of the conspiracy, which spanned four years, Quick Tax claimed over $400,000 in fraudulent refunds.
Assistant Attorney General Keneally commended the efforts of Special Agents of IRS - Criminal Investigation and Trial Attorneys Alexander Effendi and Charles Edgar Jr. of the Tax Division, who prosecuted the case.
Note: A prior version of this release incorrectly stated the prison sentences for Sabrina Johnson-Lavant and Chandra Henderson were 18 months and 8 months, respectively. The release has been changed above to reflect the correct sentence of 8 months for Johnson-Lavant and 18 months for Henderson.
Former Georgia Tax Return Preparers Sentenced for Tax FraudRead the Press Release
WASHINGTON – The Justice Department and the Internal Revenue Service (IRS) announced that former professional tax return preparers Greene Wylie Sheppard, Sabrina Johnson-Lavant and Chandra Henderson were sentenced this month to serve 56 months, 18 months, and 8 months in prison, respectively, for conspiring to defraud the United States by filing false tax returns in order to receive fraudulently-inflated refunds for their clients. In addition to conspiracy, Sheppard was also sentenced for aggravated identity theft. Sheppard was sentenced on July 11, 2013, and Johnson-Lavant and Henderson were sentenced yesterday.
According to court documents, Sheppard owned and operated Quick Tax, a tax preparation business in Cordele, Ga. He conspired with his employees Johnson-Lavant and Henderson to obtain higher refunds on clients’ returns by falsely inflating clients’ wages in order to exploit certain tax credits. The co-conspirators sold other people’s identifying information to their clients, and these other identities would then be claimed as dependents on their tax returns in order to manipulate the size of the refund. The three return preparers acquired dozens of identities by purchasing them. They maintained notebooks that kept track of the identities and how much clients owed them for the false dependents. Over the course of the conspiracy, which spanned four years, Quick Tax claimed over $400,000 in fraudulent refunds.
Assistant Attorney General Keneally commended the efforts of Special Agents of IRS - Criminal Investigation and Trial Attorneys Alexander Effendi and Charles Edgar Jr. of the Tax Division, who prosecuted the case.
IF YOU HAVE QUESTIONS, PLEASE CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007 or direct your inquiries to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Former Bay Area Resident Agrees to Repay $180,452 as Restitution for Conspiracy and Filing a False Claim for Tax RefundsRead the Press Release
SAN FRANCISCO – Cyrinthia Gary, aka Cyrinthia Adams, pleaded guilty yesterday to conspiring to file false tax returns, announced United States Attorney Melinda Haag and IRS-CI Special Agent in Charge José M. Martinez.
According to the plea agreement, beginning in June 2008, Gary, 41, of Sacramento, helped several people obtain tax refunds based on false tax returns that were filed with the IRS. As part of the scheme, Gary recruited others to provide their personal identifying information for use on the false tax returns. Gary knew the returns were false because the person whose name appeared on the tax returns did not supply the information used to support the refund. Furthermore, Gary used bank accounts of others whom she recruited for this purpose. When the fraudulent tax refunds were issued, the money would be withdrawn by the account holder and they would split the proceeds.
Gary also pleaded guilty to filing a false 2007 tax return in her own name on August 7, 2008. Gary admitted the tax return was false because it indicated that she received Social Security benefits in an amount that she knew was inflated. The return also stated that she had Form 1099 withholdings, which was not true.
As part of her plea agreement, Gary agreed to pay restitution in the amount of $180,452. The plea agreement further provides that Gary cannot prepare a tax return for anyone other than herself, and bars her from possessing other individuals’ identifying information without lawful authorization.
Gary, who was indicted on July 12, 2012, and was charged one count of conspiracy to file false claims and one count of filing a false claim, is scheduled for sentencing on November 20, 2013. She pleaded guilty to both counts in the indictment.
The maximum statutory penalty for each count of conspiracy to file false claim, in violation of Title 18, U.S.C § 286, is ten years in prison and a fine of $250,000. The maximum statutory penalty for each count of filing a false claim, in violation of Title 18, U.S.C § 287, is five years in prison and a fine of $250,000. However, any sentence will be imposed by the court only after consideration of the U.S. sentencing guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Thomas Newman is the Assistant U.S. Attorney who is prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Former Arlington Resident Receives 82 Months for Stalking and ThreatsRead the Press Release
BOSTON – A former Arlington resident was sentenced late yesterday to 82 months in federal prison for stalking and threatening to kill.
Phillip Andrew Bauer, 33, a Canadian citizen previously residing in Arlington, was sentenced by U.S. District Judge George A. O’Toole, Jr., to 82 months in prison to be followed by three years of supervised release. He is subject to deportation upon release from prison. In April 2013, Bauer pleaded guilty to mailing threatening communications and two counts of stalking.
Following a domestic altercation in February 2011, Bauer began to send threatening, harassing and extortionate communications in various forms to the victim and members of her family. In some communications, he threatened to kill the victim and/or two of her siblings and demanded $50,000 cash. Bauer sent some of the letters while he was incarcerated and while a restraining order was in effect.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Boston Police Commissioner Edward Davis; and Arlington Chief of Police Frederick Ryan made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Suzanne Sullivan Jacobus and David G. Tobin of Ortiz's Major Crimes Unit.Federal Officials Close the Investigation into the Death of Ramses Barron-TorresRead the Press Release
The Justice Department will not pursue federal criminal civil rights or other federal criminal charges against the United States Border Patrol (USBP) agent involved in the shooting incident that resulted in the death of Ramses Barron-Torres, the department announced today.
Officials from the Civil Rights Division of the Department of Justice, the U.S. Attorney’s Office for the District of Arizona, and the Department of Homeland Security (DHS) Office of the Inspector General (OIG) met today with representatives for Barron-Torres’ family to inform them of this determination. The department’s decision is based on the facts developed during an independent and comprehensive investigation into this matter.
The department devoted significant time and resources to investigating the events surrounding Barron-Torres’ death on Jan. 5, 2011, at approximately 3:00 a.m., at the international boundary fence separating the United States from Mexico in Nogales, Ariz. A team of experienced federal prosecutors reviewed hundreds of pages of evidence generated by DHS OIG investigators and the FBI. They conducted a detailed and lengthy analysis of numerous materials including videotapes of the incident, physical evidence reports, official law enforcement use of force training materials, law enforcement accounts and civilian witness accounts.
The evidence developed during the investigation indicated that USBP agents were responding to reports that individuals were moving apparent packages of narcotics across the U.S. – Mexico border. When the agents arrived at the location, Barron-Torres, a 17-year-old Mexican national, and three other individuals were on the Mexico side of the border fence and started throwing rocks at the two USBP agents who were on the U.S. side of the fence. A fifth individual, who was carrying a bundle of suspected narcotics, ran parallel to the fence on the U.S. side. The agents were forced to take protective cover due to the rocks that were being thrown by Barron-Torres and his associates. The agents issued commands, in Spanish, to stop throwing rocks. However, Barron-Torres continued to throw rocks, and one of the agents fired a round at Barron-Torres from his service weapon, fatally striking him. A videotape of the incident captured Barron-Torres making a throwing motion with his right arm, then falling to the ground.
The Department of Justice lacks jurisdiction to prosecute the agent who fired at Barron-Torres under the federal criminal civil rights statute pertaining to use of force under color of law, because the statute requires that the victim be in the United States when he was injured. Here, Barron-Torres was on the Mexico side of the border fence when he was shot. While the federal homicide statutes address murder and manslaughter committed within the Special Maritime and Territorial Jurisdiction of the United States, federal courts have consistently held that self-defense and justification are both defenses to the federal homicide statutes. Although the agent was within the Special Maritime and Territorial Jurisdiction when he fired upon Barron-Torres, there is insufficient evidence to disprove the agent’s claim that he shot Barron-Torres in self-defense; because Barron-Torres was throwing rocks over the border fence in the direction of the agents and ignored the agents’ commands to stop. Rather, the videotape of the incident, another witness agent and a civilian witness on the Mexico side of the fence all corroborate the account of the agent who fired at Barron-Torres.
While the loss of life is regrettable, the facts of this matter do not support a federal prosecution. Accordingly, the investigation into this incident has been closed.
Federal Officials Close the Investigation into the Death of Carlos LaMadridRead the Press Release
The Justice Department will not pursue federal criminal civil rights or other federal criminal charges against the United States Border Patrol (USBP) agent involved in the shooting incident that resulted in the death of Carlos LaMadrid, the Department announced today.
Officials from the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the District of Arizona, and the Department of Homeland Security (DHS) Office of the Inspector General (OIG) met today with LaMadrid’s family members and their representatives to inform them of this determination. The department’s decision is based on the facts developed during an independent and comprehensive investigation into the matter.
The department devoted significant time and resources to investigating the events surrounding LaMadrid’s death on March 21, 2011, around noon, at the international boundary fence separating the United States from Mexico in Douglas, Ariz. A team of experienced federal prosecutors reviewed thousands of pages of evidence generated by the DHS OIG investigators, the Customs and Border Protection Office of Professional Responsibility, and the Immigration and Customs Enforcement (ICE) Internal Affairs Unit. They conducted a detailed and lengthy analysis of numerous materials including videotapes of the incident, the autopsy report, physical evidence reports, official law enforcement use of force training materials, law enforcement accounts and civilian witness accounts. Federal prosecutors also interviewed several key witnesses and physically examined the scene of the shooting to gather additional information.
The evidence developed during the investigation indicated that LaMadrid, a 19-year-old U.S. citizen, was observed by Douglas Police Department (DPD) officers loading suspected bundles of narcotics into a Chevrolet Avalanche. DPD officers pursued the vehicle, but LaMadrid failed to yield and drove toward the international boundary fence. The Avalanche ran into a USBP agent’s service vehicle near the fence. LaMadrid exited the driver’s door, ran toward the fence, and climbed up a ladder that was resting against the fence. On top of the fence, near LaMadrid, was another male throwing brick-sized rocks at the USBP agent. At the time the shots were fired by the agent, LaMadrid was in the line of fire between the rock-throwing male and the agent. LaMadrid was struck by four bullets, causing him to fall to the ground. He was transported to a nearby hospital where he died in surgery several hours later.
While a civilian witness who climbed up the ladder behind the victim stated that he did not see anyone throwing rocks at the time of the shooting, his account is contradicted by the physical, testimonial and video evidence. A law enforcement officer who witnessed the shooting stated that he saw a man on top of the fence throw three rocks at the agent, forcing the shooting agent to duck down behind his vehicle for cover. The videotapes of the incident, although poor in quality, show an individual on top of the border fence making an overhead throwing motion as the victim ascends the ladder. Crime scene investigators recovered several brick-sized rocks at the scene, including one that shattered the windshield of the USBP agent’s service vehicle, which the agent was standing or stooping next to when he fired five shots.
Under the applicable federal criminal civil rights law, prosecutors must establish, beyond a reasonable doubt, that an official “willfully” deprived an individual of a constitutional right, meaning that the official acted with the deliberate and specific intent to do something the law forbids. This is the highest standard of intent imposed by the law. Neither accident, mistake, fear, negligence nor bad judgment is sufficient to establish a federal criminal civil rights violation. After a careful and thorough review, a team of experienced federal prosecutors determined that the evidence was insufficient to pursue federal criminal civil rights charges.
This matter is also not prosecutable under the federal homicide statutes, although it was committed within the Special Maritime and Territorial Jurisdiction of the United States, because there is insufficient evidence for the government to disprove that the agent was acting in self-defense when he fired at the rock thrower and mistakenly struck the victim, who was in his line of fire.
While the loss of life is regrettable, the facts of this matter do not support a federal prosecution. Accordingly, the investigation into this incident has been closed.
Eastern Shore Drug Distributor Sentenced to 19 Years in Prison for Heroin and Cocaine TraffickingRead the Press Release
Was a Fugitive for Over a Year
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Austin Roberts III, age 37, formerly of Elkridge, Maryland, today to 19 years in prison, followed by five years of supervised release, for conspiring to distribute heroin, cocaine and cocaine base (crack cocaine).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Wicomico County Sheriff Michael A. Lewis; Salisbury Police Chief Barbara Duncan; Chief Michael Phillips of the Fruitland Police Department; U.S. Marshal Johnny Hughes; and Wicomico County State’s Attorney Matthew Maciarello.
“Today's sentencing of Roberts closes the book on a drug dealer who was responsible for trafficking a lot of cocaine on the Eastern Shore,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “You can run and hide but the long arm of justice will eventually catch you. This case demonstrates the commitment of the DEA and our law enforcement partners to bring an investigation to a successful conclusion,” added Tuggle.
According to Roberts’ guilty plea, from 2007 until his arrest in December 2012, Roberts conspired to distribute heroin and cocaine. His co-conspirators included Andrew Jackson, Maurice Hardy and others. Roberts distributed multiple kilograms of cocaine to Hardy on several occasions. For example, after a telephone call in which Hardy indicated that Roberts would be supplying him with seven kilograms of cocaine for $31,500 per kilogram, on May 12, 2011, Jackson, under Roberts’ direction, provided several kilograms of cocaine to Hardy. Subsequent to this meeting, law enforcement stopped Jackson’s vehicle and seized over $160,000 from a hidden compartment. During the course of the conspiracy, Roberts distributed or directed the distribution of well over 50 kilograms of cocaine and a kilogram of heroin.
For over a year following his indictment on state and federal charges, Roberts eluded arrest. On July 19, 2011, an officer patrolling the New Jersey Turnpike stopped the vehicle Roberts was driving. Roberts provided a California license under the name John Nash. When the officer learned that the name was an alias for Roberts who was wanted, he requested back up. Roberts ran away as the officers continued to investigate his identity. In August 2012, a California Highway Patrol officer attempted to stop a vehicle Roberts was driving, but Roberts again escaped on foot. Officers seized over $29,000 from a hidden compartment in the vehicle. Roberts was arrested in San Diego, California on December 4, 2012.
Andrew Jackson, age 40, of Baltimore, Maryland, Maurice Kenneth Hardy, age 37, of Nanticoke, Maryland, and Tereek Nutter, age 30, of Salisbury, Maryland, previously pleaded guilty to their participation in the drug conspiracy. Judge Hollander sentenced Jackson to 10 years in prison, Nutter to 151 months, and Hardy to 16 years in prison.
United States Attorney Rod J. Rosenstein commended the DEA, U.S. Marshals Service and the Wicomico County Narcotics Task Force, comprised of the Maryland State Police, Wicomico County Sheriff’s Office, Salisbury Police Department, Fruitland Police Department, and the Wicomico County State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorney Joshua L. Kaul, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Eastern Shore Cocaine Dealer Sentenced to over 11 Years in PrisonRead the Press Release
On Supervised Release For a Prior Drug Conviction At the Time of His Arrest
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Tyrone Wheatley, age 44, of Rhodesdale, Maryland, today to 135 months in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Chief James W. Johnson of the Baltimore County Police Department; and Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police.
According to Wheatley's guilty plea, in July of 2011, Wheatley met with Steven Jordan at a shopping center in Queen Anne’s County, Maryland, and agreed to supply cocaine to Jordan in Delaware. Wheatley obtained the cocaine from a source of supply in California and arranged for the cocaine to be hidden in a vehicle, was then hauled from California to in Delaware by a commercial car transporter. Jordan delivered $220,000 in cash to Wheatley in Delaware. Wheatley transported the money through Maryland to Pennsylvania, where it was packaged in a vehicle and transported by commercial hauler to California.
On August 6, 2011, a commercial car hauler delivered a green Monte Carlo with approximately 13 kilograms of cocaine hidden inside, to a shopping center in Delaware. After receiving instructions from Wheatley regarding the arrival of the car hauler, Jordan was arrested the next day as he attempted to take delivery of the vehicle containing the cocaine.
Steven Jordan pleaded guilty to the same charge in U.S. District Court in Delaware and was sentenced to 12 years in prison.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department and the Maryland Transportation Authority Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and Peter J. Martinez, who prosecuted the case.
Denver Man Who Promoted Credit Services Arraigned in Scheme to Fraudulently Obtain Business Lines of CreditRead the Press Release
LOS ANGELES – A Denver man who billed himself as “The Credit Line Millionaire” has pleaded not guilty to federal fraud charges that accuse him of conspiring to obtain lines of credit worth hundreds of thousands of dollars through a host of misrepresentations and falsified documents.
Christopher Robert Wise, 34, was arraigned late yesterday in United States District Court after being arrested by Secret Service agents Wednesday night. Wise, who was taken into custody at Los Angeles International Airport after arriving on a flight from Puerto Vallarta, Mexico, was arrested pursuant to a four-count indictment that alleges he conspired to fraudulently obtain lines of credit from Wells Fargo Bank, Union Bank and City National Bank. One of these loan applications was approved, which gave Wise a line of credit worth $175,000.
At Wise’s arraignment yesterday, a trial date was scheduled for October 1. A United States magistrate judge set Wise’s bond at $150,000, but he remains in custody at this time.
The indictment alleges that Wise maintained a significant online presence, which includes his websites www.creditlinemillionaire.com and http://chriswise.com/. Wise billed himself as a credit guru who could help clients obtain loans for their small- and medium-size businesses. Wise referred his clients to several co-conspirators who controlled Inland Empire companies and who promised to help acquire financing.
Wise also attempted to obtain business lines of credit for himself through loan applications submitted to the victim banks on behalf of one of his companies. Wise used a co-conspirator as a “credit partner” to pose as a “personal guarantor” for the loans – in essence, using a “straw borrower” to apply for loans in exchange for giving the credit partner a percentage of the loan proceeds.
According to the indictment, Wise spoke at a seminar where he told those in attendance that he was in the process of obtaining a $1 million line of credit – even though he had bad credit and his business did not qualify for a loan – by leveraging other people’s credit.
That indictment, which was unsealed after Wise’s arrest, charges him with one count of bank fraud conspiracy and three counts of making false statements to a financial institution. The four charges in the indictment naming Wise each carry a statutory maximum sentence of 30 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Previously in this investigation, five co-conspirators have pleaded guilty and are pending sentencing.
This case is the result of an investigation by the United States Secret Service.
Release No. 13-103
Defendant in Romanian Cybercrime Ring Convicted of Wire Fraud and Identification Document Fraud ConspiraciesRead the Press Release
Following a four-day trial, a federal jury in Brooklyn yesterday returned a verdict convicting David Ojo of conspiracy to commit wire fraud and identification document fraud. The defendant was a member of an international organized crime conspiracy, operating in Romania, Bulgaria, and the United States, that defrauded victims of tens of thousands of dollars through an Internet scam.
The conviction was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office.
Trial testimony showed that the defendant and his co-conspirators advertised used cars for sale on websites like Craigslist and eBay. Some buyers who responded to the advertisements were told variations of a story that the seller of the car had been called to active duty in Afghanistan and needed to sell his car quickly. The victims were promised that their purchases would be handled by an eBay or Google Checkout agent, who would hold their payments in escrow until they had received the car. Once the victims agreed to buy the cars and wired payments through Western Union, they never received any cars or heard from the purported sellers again.
The defendant worked with individuals in Romania and the United States to make and use false Pennsylvania and Delaware driver’s licenses, which they used to claim the money that the victims had wired through Western Union. The defendant was personally responsible for making or directing more than 30 separate money pick-ups in which victims were defrauded out of more than $80,000.
“Ojo and his cohorts sought to hide in cyberspace as they concocted a scheme that crossed the ocean and invoked patriotic themes to fleece hard working Americans. Their scheme was a new low for used car dealers, but no match for law enforcement. This conviction shows that we are committed to rooting out Internet scams that prey on those that purchase goods online,” stated United States Attorney Lynch.
When sentenced by the Honorable Allyne R. Ross, the defendant faces a maximum penalty of 20 years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Douglas M. Pravda and Margaret E. Gandy.
The Defendant
DAVID OJO
Age: 32Curtis Keith Tichenor Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on August 9, 2013, before Chief U.S. District Judge Dana L. Christensen, CURTIS KEITH TICHENOR, a 52-year-old resident of Helena, was sentenced to a term of:
Prison: 246 months, consecutive to another sentence
Special Assessment: $300
Restitution: $4,775
Forfeiture: firearms and ammunition
Supervised Release: 5 years
TICHENOR was sentenced after a federal district court trial in which he was found guilty of robbery affecting commerce, possessing and brandishing a firearm in furtherance of a crime of violence, and being a felon in possession of a firearm.
Assistant U.S. Attorney Timothy J. Racicot prosecuted the case for the United States.
At trial, the following evidence and testimony was presented to the jury.
On the morning of July 14, 2012, TICHENOR robbed the Silver Dollar Bar in Missoula. He entered the bar wearing a blue coat and a mask. He pointed a handgun at the bartender and demanded all of the money from the till. The bartender complied with TICHENOR's demand and gave him approximately $4,775.
TICHENOR left the bar and got into his blue Camaro, which was parked in an alley to the Southwest of the Silver Dollar. His girlfriend was a passenger in the car and TICHENOR told her he had just committed a robbery. He threw the gun, mask, and money into her lap. TICHENOR left Missoula by way of the Orange Street on-ramp and drove west toward Spokane on Interstate 90. Several miles outside of Missoula, he pulled over and hid the coat and mask under some bushes alongside the road.
After he hid the coat and mask, TICHENOR and his girlfriend traveled to Spokane, where they stayed for a few days. TICHENOR used money from the robbery to buy methamphetamine and heroin, which both he and his girlfriend used while they stayed at a hotel in Spokane. After spending a few days in Spokane, TICHENOR and his girlfriend returned to Helena, where both of them lived at that time.
When he got back to Helena, TICHENOR hid the remaining robbery proceeds at his brother's residence. After TICHENOR was arrested in Helena on July 23, 2012, he asked his brother to retrieve the money, give some to his girlfriend, and put some on his books at the Helena jail.
On July 23, 2012, TICHENOR and his girlfriend were arrested outside a hotel in Helena. TICHENOR was in possession of a firearm, which witnesses identified as the same gun used during the robbery of the Silver Dollar Bar nine days earlier.
In late October 2012, information on TICHENOR was provided to law enforcement officers about the robbery in Missoula. Based on that information, the officers were able to find the coat and mask that TICHENOR had hidden after the robbery along I-90 west of Missoula. The bartender from the Silver Dollar Bar identified the coat and mask as the items worn by the perpetrator of the robbery. The bartender also identified the gun seized from TICHENOR following his arrest in Helena on July 23, 2012, as the gun used during the robbery. The firearm was a entury Arms, model P-64, 9 mm handgun.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that TICHENOR will likely serve all of the time imposed by the court. In the federal system, TICHENOR does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Missoula Police Department, the Helena Police Department, the Lewis & Clark County Sheriff's Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Montana Regional Violent Crime Task. Force investigation.
Crew Linked to Ten Armed Robberies Indicted on Federal ChargesRead the Press Release
Little Rock– Christopher R. Thyer, Attorney for the Eastern District of Arkansas; Grover Crossland, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Chief Mike Davis of the North Little Rock Police Department; announced the arrest and return of two federal indictments charging four (4) men with the armed robbery of seven local fast-food restaurants and one store, as well as the attempted armed robbery of one local fast-food restaurant and a bank. The robberies occurred between January 2013 and June 2013 in North Little Rock, Little Rock, Sherwood, and Cabot. The establishments targeted in the robberies include five (5) different Sonic Drive-Ins, two (2) Subway restaurants, a Dollar General store, Yogurt Mountain, and the Bank of England.
“The citizens of Arkansas deserve to enjoy a bite to eat without the fear of thugs with guns threatening their meal,” stated Thyer. “This is the second string of robberies we have indicted in two months. As in the case we indicted in June, it is through the partnership with law enforcement at the local level that these men are facing these charges. Arkansans are safer today and really, every day, due to the commitment of law enforcement to work together.”
SAC Crossland said, “This joint investigation between NLRPD and ATF illustrates the impact on reducing violent crime when agencies combine and coordinate their skills and resources. This investigation is an example of excellent investigative work, a job well done by the investigators.”
“With the arrest of these individuals robberies will go down,” stated Chief Davis. “The number may be small but at least one or two individuals who knew these subjects or heard about their arrest will decide it’s not worth it. The price is too high. Because of our relationship with the ATF through our Task Force Officer Michael Gibbons, we have been able to make several arrests -- arrests that result in convictions with federal sentences which don’t typically end with probation, quite the opposite, they end with substantial prison sentences with no chance of parole. These arrests are just a couple of the many that have occurred over this past year as a result of our relationship with the ATF. Individuals who have committed many of our violent and property crimes have received large prison sentences because of their decision to involve a firearm in their crime.”
The first indictment charges Darius Antonio Malvin, 22, of Little Rock; Marquis D. Robinson, 23, of Little Rock, and Justin Lamar Williams, 24, of England, Arkansas, in twenty-one-counts related to the crime spree. The counts include one (1) count of Conspiracy to Interfere with Commerce by Robbery, eight (8) counts of Interference with Commerce by Robbery, one (1) count of Attempted Interference with Commerce by Robbery, and nine (9) counts of Brandishing a Firearm during a Crime of Violence. Malvin and Robinson are charged in all of the armed robberies; Williams is charged along Malvin and Robinson in four of the armed robberies. Robinson is charged separately in two different counts with being a Felon in Possession of a Firearm and with being a Felon in Possession of Ammunition.
If convicted of Conspiracy to Interfere with Commerce by Robbery or Interference with Commerce by Robbery, each defendant will face a sentence of not more than 20 years imprisonment and/or a fine of not more than $250,000, followed by not more than three years of supervised release. If convicted of Brandishing a Firearm during the robberies, federal law requires a sentence of not less than seven (7) years imprisonment to be served consecutive to any sentence imposed for the underlying robbery.
The second indictment charges Malvin, Robinson, and Desmond L. Jones, 27 of Scott, Arkansas, with the attempted robbery of the Bank of England, located at 11044 Highway 165, in North Little Rock, on May 24, 2013. Malvin is also charged with brandishing a firearm during that attempted robbery. Jones is also charged with being a felon in possession of ammunition on the same date.
If convicted of attempted bank robbery, the men will face a sentence of not more than 20 years imprisonment and/or a fine of not more than $250,000, followed by not more than three years of supervised release.
A conviction for being a felon in possession of a firearm or ammunition carries a possible punishment of not more than ten years imprisonment and/or a fine of not more than $250,000, followed by not more than three years of supervised release.
The investigation was conducted by the ATF and the North Little Rock Police Department with assistance from the Little Rock, Sherwood, and Cabot Police Departments. The indictment is being prosecuted by Assistant United States Attorney Michael Gordon.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
DEFENDANTS/CHARGES
Darius Antonio Malvin, 22, Little Rock: Conspiracy to Interfere with Commerce by Robbery, Interference with Commerce by Robbery (8 counts), Attempted Interference with Commerce by Robbery (1 Count), Attempted Bank Robbery (1), Brandishing a Firearm during a Crime of Violence (10 Counts).
Marquis D. Robinson, 23, Little Rock: Conspiracy to Interfere with Commerce by Robbery, Interference with Commerce by Robbery (8 counts), Attempted Interference with Commerce by Robbery (1 Count), Attempted Bank Robbery (1), Brandishing a Firearm during a Crime of Violence (9 Counts), Felon in Possession of a Firearm (1 Count), Felon in Possession of Ammunition (1 Count).
Justin Lamar Williams, 24, England: Conspiracy to Interfere with Commerce by Robbery, Interference with Commerce by Robbery (3 counts), Attempted Interference with Commerce by Robbery (1 Count), Brandishing a Firearm during a Crime of Violence (4 Counts)
Desmond L. Jones, 27, Scott: Attempted Bank Robbery (1), Felon in Possession of Ammunition (1 Count).
STATUTORY SENTENCES
Conspiracy to Interfere with Commerce by Robbery is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
Interference with Commerce by Robbery (or an Attempt) is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
Attempted Bank Robbery is punishable by not more than 20 years incarceration in the Bureau of
Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
Brandishing a Firearm during a Crime of Violence is punishable by not less than 7 years, but not more than life, incarceration in the Bureau of Prisons (consecutive to any other sentence imposed) with a possible fine of up to $250,000, and not more than 5 years supervised release .Felon in Possession of a Firearm or Ammunition is punishable by not more than 10 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 3 years supervised release.
Charlotte Man Receives 18-Month Prison Term for Vehicle Emissions FraudRead the Press Release
Defendant Continued To Conduct Illegal Emissions Inspections After Entering Guilty Plea
CHARLOTTE, N.C. – A Charlotte man was sentenced on Thursday, August 8, 2013, to serve 18 months in prison for conducting over 530 false vehicle emission inspections, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. also ordered Jassim Juburi, 40, of Charlotte, to stay under court supervision for three years following the prison term, and to a pay a $15,000 fine, which, if paid in full, can reduce Juburi’s term of supervised release to two years.
U.S. Attorney Tompkins is joined in making today’s announcement by Special Agent in Charge Maureen O’Mara of the U.S. Environmental Protection Agency, Criminal Investigation Division (EPA-CID), Atlanta Area Office; Greg McLeod, Director of the North Carolina State Bureau of Investigation (NC SBI); and Steven M. Watkins, Director of the North Carolina Division of Motor Vehicles License and Theft Bureau (NC DMV L&T).
According to court records and yesterday’s sentencing hearing, Juburi worked at Central Auto Inspection & Repair (Central Auto) in Charlotte, as a mechanic and a vehicle emissions inspector licensed by the state of North Carolina. As a state-licensed emissions inspector, Juburi conducted onboard diagnostic (OBD) inspections to test federally-mandated vehicle emissions. Court records show that from August 2010 to March 2012, and while employed at Central Auto, Juburi conducted 534 illegal vehicle emissions inspections, using surrogate vehicles to falsely pass those that would have failed emissions inspections. The illegal practice of utilizing substitute vehicles for emissions testing is referred to in the industry as “clean scanning.” Court records indicate that Juburi charged as much as $100 to clean scan a vehicle. According to yesterday’s sentencing hearing, law enforcement agents were able to obtain a fraudulent vehicle emissions certificate from Central Auto without ever producing a vehicle to be inspected. The fraudulent emissions test and certificate were generated by Juburi.
In March 2012, Juburi pleaded guilty to one count of conspiracy to violate the Clean Air Act by conducting false vehicle emissions inspections. Court records indicate that Juburi continued to conduct false inspections, even after entering a guilty plea on the charge. According to filed documents, between March and April 2012, Juburi conducted an additional 11 clean scans at Central Auto. Court records show that Juburi was unable to continue clean scanning vehicles after NC DMV L&T suspended Central Auto’s license to conduct emissions inspections. Central Auto’s license has been suspended for a period of 10 years.
Juburi has been in local federal custody since October 2012, following a court-ordered bond revocation for continuing the fraudulent conduct after entering a guilty plea. Juburi will remain in the custody of the U.S. Marshals Service pending placement by the Federal Bureau of Prisons. All federal sentences are served without the possibility of parole.
The Clean Air Act requires vehicle emission inspections in geographic regions that exceed national ambient air quality standards. According to the EPA, the Charlotte metropolitan area exceeds the 8-hour standard set for Ozone, a potent irritant that can cause lung damage and other types of respiratory problems.
The investigation of this case was conducted by the EPA’s criminal investigation division, NC SBI’s Diversion and Environmental Crimes Unit, and NC DMV License and Theft Bureau, with assistance from the North Carolina Division of Air Quality, Mobile Sources Compliance Branch. The prosecution was handled by Assistant United States Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Buffalo Men Indicted for Rash of Bank RobberiesRead the Press Release
BUFFALO, N.Y.- U.S. Attorney William J. Hochul, Jr. announced today that Jason Berg, 22, of Buffalo, N.Y., Jeffery Turner, 23, of Buffalo, NY, and Donovan Devost, 20, of Buffalo, NY, were separately indicted by the Federal Grand Jury for bank robbery. Each defendant faces a maximum penalty of 20 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Melissa Marangola, who is handling the cases, stated that according to the indictments, Jason Berg robbed three banks on April 26, 2013, May 16, 2013, and June 12, 2013. Donovan Devost robbed three banks in Buffalo, New York, on April 30, 2013, June 19, 2013, and June 21, 2013. Jeffery Turner robbed two banks on June 13, 2013, and July 1, 2013.
Although the defendants are currently charged in separate indictments, the 8 bank robberies are similar. In each robbery, the suspect passed the tellers a handwritten note, threatening the use of a firearm and other similar language. The defendants will appear for arraignment before Magistrate Judge McCarthy on August 14, 2013 at 11:30 a.m.
The Indictments are the result of a joint investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Cheektowaga Police Department, under the direction of Chief David J. Zack, the Niagara Frontier Transit Authority Police, under the direction of Chief George Gast, and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Richard M. Frankel.
The fact that a defendants have been charged with a crime is merely an accusation and the defendants are presumed innocent until and unless proven guilty.Al-Qaeda Inspired Operative Sentenced to 30 Years in Prison for Attempting to Bomb Federal Reserve Bank in Lower ManhattanRead the Press Release
BROOKLYN, NY – Earlier today, Quazi Mohammad Rezwanul Ahsan Nafis, who attempted to detonate a 1,000-pound bomb at the New York Federal Reserve Bank on Liberty Street in lower Manhattan’s financial district in October 2012, was sentenced to 30 years in prison by Chief Judge Carol B. Amon of United States District Court in Brooklyn, New York.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John Carlin, Acting Assistant Attorney General for National Security; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and Raymond W. Kelly, Commissioner, New York City Police Department (NYPD).
“Nafis came to the United States radicalized and bent on fighting jihad here in our homeland. He sought to commit mass murder in downtown Manhattan in the name of al-Qaeda. The prospect of widespread death and destruction could not dissuade him from his deadly plan. Nafis’s goals of martyrdom and carnage were thwarted by the vigilance of law enforcement. He will now spend the next 30 years where his own actions have landed him, in a federal prison cell,” stated United States Attorney Lynch. “I would like to thank our partners at the FBI, NYPD, Immigration and Customs Enforcement/Homeland Security Investigations, the United States Secret Service, the other agencies who participate in the JTTF, and the Department of Justice’s National Security Division, for their hard work on this important investigation. I would also like to thank the security teams at the New York Federal Reserve Bank and the New York Stock Exchange for their assistance.”
“With the sentence handed down today, Rezwanul Nafis is being held accountable for his attempt to carry out a terrorist attack on U.S. soil. I applaud the many agents, analysts, and prosecutors who ensured that his deadly plans never came to fruition and who are responsible for today’s successful outcome,” said Acting Assistant Attorney General for National Security Carlin.
As set forth in the indictment and other case filings, defendant Nafis, a 22-year-old Bangladeshi national, traveled to the United States in January 2012 intending to fight violent jihad. Nafis possessed operable bomb-making instructions and attempted to recruit multiple individuals to form a terrorist cell inside the United States. Nafis also actively sought out al-Qaeda contacts within the United States to assist him in carrying out an attack. Unbeknownst to Nafis, one of the individuals he attempted to recruit into his jihadist cell was actually a source for the FBI. During the subsequent investigation, FBI agents, NYPD detectives and other law enforcement agents working with the FBI’s New York Joint Terrorism Task Force were able to closely monitor Nafis as he attempted to implement his plan.
Nafis proposed several targets for his attack, including a high-ranking United States official and the New York Stock Exchange. Ultimately, Nafis decided to conduct a bombing operation against the New York Federal Reserve Bank. In a statement claiming responsibility for the terrorist bombing of the Federal Reserve Bank on behalf of al-Qaeda, Nafis wrote that he wanted to “destroy America” and that he believed the most efficient way to accomplish this goal was to target America’s economy. In this statement, Nafis also included quotations from “our beloved Sheikh Osama bin Laden” to justify the fact that Nafis expected that the attack would involve the killing of women and children.
During the investigation, Nafis came into contact with an FBI undercover agent who posed as an al-Qaeda facilitator. At Nafis’s request, the undercover agent supplied Nafis with 20 50-pound bags of purported explosives. Nafis then stored the material and assembled the explosive device for his attack. Nafis purchased components for the bomb’s detonator and conducted surveillance for his attack on multiple occasions in New York City’s financial district. Throughout his interactions with the undercover agent, which were captured on recordings, Nafis repeatedly asserted that the plan was his own and the reason he had come to the United States was to commit an attack.
On October 17, 2012, the day of the planned attack, Nafis met the undercover agent and traveled in a van to a warehouse located in the Eastern District of New York. While en route, Nafis explained to the undercover agent that he had a “Plan B” that involved conducting a suicide bombing operation in the event that the attack was about to be thwarted by the police. Upon arriving at the warehouse, Nafis assembled what he believed to be an operational 1,000-pound bomb inside the van. Nafis and the undercover agent then drove to the New York Federal Reserve Bank. During this drive, Nafis armed the purported bomb by assembling the detonator and attaching it to the explosives. Nafis and the undercover agent parked the van next to the New York Federal Reserve Bank, exited the van, and walked to a nearby hotel. There, Nafis recorded a video statement which he intended to release to the public in connection with the attack. During this video statement, Nafis stated: “We will not stop until we attain victory or martyrdom.” Nafis then repeatedly, but unsuccessfully, attempted to detonate the bomb, which had been assembled using inert explosives provided by the undercover agent. JTTF agents arrested Nafis immediately after he attempted to detonate the bomb.
On February 7, 2013, in federal court in Brooklyn, New York, Nafis pled guilty to attempting to use a weapon of mass destruction. During the guilty plea proceeding, Nafis admitted under oath that he had attempted to bomb the Federal Reserve Bank in Manhattan, that he had used a cellular phone as the detonator for the explosion, and that he had selected the Federal Reserve Bank as the target for his attack.
The government’s case is being prosecuted by Assistant U.S. Attorneys James P. Loonam and Richard M. Tucker, with assistance from Trial Attorney Bridget Behling of the Justice Department’s Counterterrorism Section.
The Defendant:
QUAZI MOHAMMAD REZWANUL AHSAN NAFIS
Age: 22
Jamaica, New York
8 August 2013
Woman Pleads Guilty to Production of Child PornographyRead the Press Release
St. Thomas, USVI – Jamhila Hodge, 24, pleaded guilty Wednesday in federal district court on St. Thomas to one count of production of child pornography, announced United States Attorney Ronald W. Sharpe, U.S. Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge Angel Melendez, and Virgin Islands Police Department Commissioner Rodney Querrard.
According to the plea agreement, Hodge used a cell phone to record a seven-minute video of an adult male engaging in sexual intercourse with a 15-year-old female. Hodge was arrested in April 2012 and charged in a five-count indictment with two counts of production of child pornography, two counts of possession of child pornography, and aiding and abetting second-degree aggravated rape. Co-defendant Calieb Webster, 30, was charged with one count of production of child pornography and second-degree aggravated rape. Webster’s trial is scheduled for August 12, 2013.
Hodge also pleaded guilty July 26, 2013 in federal district court on St. Croix to conspiracy to possess with intent to distribute cocaine. Webster pleaded guilty on August 5, 2013 in federal district court on St. Croix to conspiracy to possess with intent to distribute cocaine. Both Hodge and Webster, who were traveling together, were arrested on St. Croix in February 2012 when they presented themselves for preclearance inspection at the Henry E. Rohlsen Airport prior to boarding an American Airlines flight to New York via Miami. According to the plea agreement, approximately 36.32 kilograms of cocaine was found in their luggage.
Hodge faces a mandatory minimum sentence of 15 years in prison on the production of child pornography charge, and 10 years mandatory minimum on the drug charge. Webster faces a mandatory minimum sentence of 10 years in prison on the drug charge. Sentencing for Hodge has been set for October 24 on the child pornography charge, and October 31 on the drug charge. Sentencing for Webster has been set for November 7 on the drug charge.
The arrest of Webster and Hodge for production of child pornography is part of Homeland Security Investigations’ Operation Predator, a nationwide initiative to identify, investigate and arrest those who sexually exploit children. As part of Operation Predator, HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing and Exploited Children, an Operation Predator partner, at 1-800-843-5678 or http://www.cybertipline.com.
The child pornography case is being prosecuted by Assistant United States Attorney Everard E. Potter. The drug case is being prosecuted by Assistant United States Attorney Rhonda Williams-Henry.
Williamson County Man Sentenced on Methamphetamine ConspiracyRead the Press Release
On August 8, 2013, Jason S. Byrley, 35, of Pittsburg, IL, was sentenced in United States District Court in Benton on an indictment charging conspiracy to manufacture methamphetamine, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Byrley, who had previously pled guilty to the methamphetamine charge, was sentenced to 120 months (10 years) in prison, 5 years of supervised release, and fined $300. The conspiracy offense occurred between 2008, and January 30, 2012, in Williamson, Jackson, Saline, and Franklin Counties. At sentencing, the district judge found that Byrley was responsible for the manufacture of more than one kilogram of methamphetamine. Six co-defendants have previously been sentenced for their role in the methamphetamine conspiracy.
The ongoing investigation is being conducted by the Drug Enforcement Administration and Jackson County Sheriff’s Office, with the assistance of the Murphysboro Police Department, Marion Police Department, Williamson County Sheriff’s Office, Saline County Sheriff’s Office, Illinois State Police, Carrier Mills Police Department, Harrisburg Police Department, and United States Marshals Service.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
U.S. Postal Letter Carrier Indicted for Allegedly Destroying, Stealing U.S. MailRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence on Wednesday returned a two-count indictment charging Matthew Golatto, 28, of Providence, a U.S. Postal letter carrier, with one count each of delaying delivery of mail and theft of mail, announced United States Attorney Peter F. Neronha and Rafael Medina, Special Agent in Charge of the United States Postal Service, Office of Inspector General (USPS OIG) - Northeast Area Field Office.
Golatto was charged by way of criminal complaint in this matter on July 17, 2013.
According to documents filed in the U.S. District Court, it is alleged that on July 8 and 9, 2013, after receiving information from an area resident a Postal employee recovered from two locations in Coventry a substantial number of pieces of mail allegedly discarded by Golatto. The mail was addressed to recipients in Coventry along routes assigned to Golatto.
In addition, according to court documents, on July 9, 2013, a substantial number of pieces of mail were allegedly recovered from Golatto’s personal vehicle, including 55 greeting card envelopes that had been opened. The contents of a number of the envelopes had been removed. USPS OIG agents recovered 36 retail gift cards from Golatto’s vehicle. Agents also recovered a package that had allegedly been opened which contained medicine mailed from the U.S. Department of Veterans Affairs to a Coventry resident.
A criminal complaint and an indictment are merely allegations and are 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.
Golatto, who was released on unsecured bond following an initial appearance before U.S. District Court Judge Magistrate Judge Lincoln D. Almond on July 30, 2013, is scheduled to be arraigned on the indictment on August 13, 2013.
If convicted of delay of mail and theft of mail, Golatto faces statutory penalties of up to 5 years in federal prison, 3 years of supervised release and up to a fine of $250,000 on each charge.
The case is being prosecuted by Assistant U.S. Attorney Zechariah Chafee.
Agents from the United States Postal Service, Office of Inspector General were assisted by Coventry Police in the investigation of this matter.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Two Southeast Texans Sentenced for Child Pornography ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – Two Southeast Texas residents and a Louisiana man have been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Stacey Marie Barron, 25, of Nederland, Texas, pleaded guilty on Aug. 24, 2012 to conspiracy to produce child pornography and was sentenced to 276 months in federal prison today by U.S. District Judge Marcia Crone.
Johnny Ray Baldwin, II, 28, of Lumberton, Texas pleaded guilty on Aug. 24, 2012, to conspiracy to produce child pornography and was sentenced to 108 months in federal prison today by Judge Crone.Charles Edward Reese, 67, of Covington, LA, pleaded guilty on May 24, 2012, to conspiracy to produce child pornography and was sentenced to 240 months in federal prison today by Judge Crone. Reese was also ordered to pay $2,819,887.00 in restitution to the victims. The minor victims in this case will receive restitution for their future medical needs, to be held in a special needs trust. The trust will be funded, in part, by assets frozen and seized by the U.S. Attorney’s Office prior to Reese’s sentencing.
According to information presented in court, on Feb. 1, 2012, federal officials conducted a search warrant at a home in Orange County, Texas after receiving information from an Internet-based image hosting website reporting that a customer had uploaded digital images from a cell phone that contained sexually explicit conduct of a young child and an adult. An investigation revealed that although the adult in the photos was deceased, another person identified as Reese had been paying money for several years in return for digital pictures of sexually explicit conduct involving minor children. On Mar. 12, 2012, a search warrant was executed at Reese’s home in Louisiana during which multiple child pornography images and videos were discovered. Financial records indicate Reese paid over $700,000 between 2004 and 2012 for the production of child pornography.
Reese was arrested on Mar. 5, 2012 and indicted by a federal grand jury on Mar. 21, 2012.
Further investigation led to additional child pornography which had been produced by Barron and Baldwin for Reece from July 2009 to August 2011 using two young children. A federal grand jury returned an indictment on June 6, 2012 charging Barron and Baldwin with child pornography violations.
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.This case was investigated by the FBI, Jefferson County Child Protective Services, the Garth House, Orange County Child Protective Services, and Orange County Sheriff’s Office, and was prosecuted by Executive Assistant U.S. Attorney Brit Featherston and Assistant U.S. Attorney Christopher T. Tortorice.
Two Percy Men Sentenced for Methamphetamine ConspiracyRead the Press Release
On August 8, 2013, Michael J. Jaimet, 31, and Joshua D. Stacy, 27, both of Percy, IL, were sentenced in United States District Court in Benton on an indictment charging conspiracy to manufacture methamphetamine, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Jaimet and Stacy had previously pled guilty to the methamphetamine offense, which occurred between January 2011, and January 2013, in Perry, Jackson, and Randolph Counties. Jaimet was sentenced to 151 months in prison, 3 years of supervised release and fined $300. Stacy was sentenced to 108 months in prison, 4 years of supervised release, and fined $200. Evidence at the plea hearings established that Jaimet and Stacy were involved with each other and others in the manufacture of methamphetamine. Jaimet and Stacy obtained pseudoephedrine to use to make methamphetamine and were involved in the methamphetamine cooks. In June 2012, Stacy was severely burned during a methamphetamine lab explosion. Three co-defendants have previously been sentenced for their role in the methamphetamine conspiracy. Seven co-defendants have pled guilty and are awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Randolph County Sheriff’s Office, Perry County Sheriff’s Office, Percy Police Department, Murphysboro Police Department, Sparta Police Department, and Drug Enforcement Administration.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Two Individuals Charged with Material Support Offenses Involving Al-Qa’ida, Al-Qa’ida in Iraq/Al-Nusrah Front, and Al-ShabaabRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John P. Carlin, Acting Assistant Attorney General for National Security, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and the members of the South Florida Joint Terrorism Task Force (JTTF), announce that today two individuals, one a United States citizen, made their initial appearance in federal court in Miami on an indictment returned in the Southern District of Florida.
The fifteen-count indictment charges Gufran Ahmed Kauser Mohammed, 30, a naturalized United States citizen and resident of Dammam, Saudi Arabia, and Mohamed Hussein Said, 25, a Kenyan national and resident of Nairobi and Mombasa, with conspiring to provide, and attempting to provide, material support to three separately designated Foreign Terrorist Organizations, al-Qa’ida, al-Qa’ida in Iraq/al-Nusrah Front (“AQI/al-Nusrah Front”), and al-Shabaab. If convicted, each defendant faces a possible statutory maximum sentence of up to 15 years in prison for each count of the Indictment.
The indictment alleges that Mohammed and Said conspired to provide money and recruits to al-Qa’ida, AQI/al-Nusrah Front in Syria and al-Shabaab in Somalia. The charges allege that Mohammed sent a series of wire transfers to Said for the purpose of supporting al-Shabaab, and to an individual whom he believed was a fundraiser, recruiter, and supplier for al-Qa’ida and AQI/al-Nusrah Front for the purpose of supporting al-Qa’ida and AQI/al-Nusrah Front. In addition, Mohammed and Said agreed to support al-Qa’ida and AQI/al-Nusrah Front by recruiting and moving experienced al-Shabaab fighters to the conflict in Syria.
Mr. Ferrer commended the investigative efforts of the FBI, U.S. Customs and Border Protection, Miami-Dade Police Department, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the South Florida Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Brian Frazier and Ricardo Del Toro and Trial Attorney Jolie Zimmerman from the Counterterrorism Section of the Justice Department’s National Security Division.
An indictment is only an accusation and a defendant is presumed innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Clark County Women Plead Guilty to Conspiring to Make and Pass Counterfeit United States CurrencyRead the Press Release
Michelle L. Welcher, 40, and Mandy L. Tingley, 33, both of Marshall, Illinois, pled guilty today in United States District Court in Benton to an indictment charging them with conspiring to make and pass counterfeit United States currency and possession of counterfeit currency, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on December 4, 2012, alleged that the offenses occurred from August 29th to September 3, 2012, in and around Clark County.
Sentencing was set for December 6th at the United States District Courthouse in Benton. At that time, Welcher and Tingley each face up 5 years in prison, a $250,000 fine, and 3 years of supervised release to follow their incarceration on the conspiracy count. On the possession counts, each face up to 20 years in prison, a $250,000 fine, and 3 years of supervised release.
The case was investigated by the United States Secret Service, the Illinois State Police, and the Clark County Sheriff's Department with the assistance of the Clark County State's Attorney's Office, and is being prosecuted by Assistant United States Attorney James M. Cutchin.