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Newest first across public DOJ and U.S. Attorney press releases.
Sunday 23 June 2013
Statement of Department of Justice Spokeswoman Nanda Chitre on Edward SnowdenRead the Press Release
As we stated yesterday, the United States had contacted authorities in Hong Kong to seek the extradition of Mr. Snowden, based on the criminal complaint filed in the Eastern District of Virginia, and in accordance with the US-Hong Kong Agreement for the Surrender of Fugitive Offenders. We have been informed by the Hong Kong authorities Mr. Snowden has departed Hong Kong for a third country. We will continue to discuss this matter with Hong Kong and pursue relevant law enforcement cooperation with other countries where Mr. Snowden may be attempting to travel.
Saturday 22 June 2013
U.S. Attorney Keynote Speaker at National Day of Prayer LuncheonRead the Press Release
U.S. Attorney Alicia A.G. Limtiaco, Districts of Guam and the Northern Mariana Islands, was invited by the Guam Interfaith Committee to be the keynote speaker at the annual National Day of Prayer Luncheon held on May 16, 2012 at the Aurora Hotel.
The Guam Interfaith Committee is composed of representatives of seven faith traditions currently present on Guam. These faiths are: Hindu, Judaism, Buddhism, Christianity, Muslim, Baha’i plus Chamorro Spiritual Tradition. The members came together immediately after 9/11 to counter any hate acts by misguided individuals. The Guam Interfaith Committee members work closely with one another to promote mutual understanding, respect, tolerance, and compassion between their faiths. The Committee sponsors an annual Interfaith Thanksgiving Service which began since 9/11 with over 200 in attendance and has conducted the service every year since 9/11. They also commenced the National Day of Prayer Luncheon six years ago which is now an annual event.
United States Attorney Limtiaco spoke about the Diverse Communities Outreach group she started in early March 2011. This group consists of faith-based community leaders and consuls general. The purpose of the meetings is to provide a forum to discuss crime prevention, civil rights and immigration issues, and to strengthen the relationship between law enforcement and our community.
TEAM FEDS Raised $11,000 for the American Cancer Society’s 2012 Relay for Life EventRead the Press Release
U.S. Attorney Alicia A.G. Limtiaco, Districts of Guam and the Northern Mariana Islands, announced that her office joined the thousands that flocked to the annual Relay for Life Event held at the George Washington Senior High School track to celebrate cancer Survivors, remember loved ones lost to cancer and to join with the many teams on Guam that participate in the fight against cancer.
Team FEDS, “Friends Engaging in Dynamic Service,” is comprised of co-workers and friends from various federal law enforcement agencies. Team FEDS joined the fight against cancer in 2003 by forming the team, when one of their co-workers was stricken by cancer. The team strives to raise $10K every year through fundraisers such as their annual Chili Cook-off and other creative fundraisers. Their biggest achievement was in 2008 when they raised $14K. This year, Team FEDS, with only 17 online team members, four being Survivors, but with many supporters, raised $11,000. Team FEDS Relay in support of cancer research and clinical studies -- they Relay because they are FED UP with CANCER!
Attached is a photo of the team taken the night of Relay. Guam’s Relay for Life annual event is the largest American Cancer Society event on Guam. There were 83 teams registered for this year’s Relay resulting in raising the amount of $475,577.00.
Asian American Pacific Island Heritage MonthRead the Press Release
U.S. Attorney Alicia A.G. Limtiaco, Districts of Guam and the Northern Mariana Islands, was invited to attend the Guam Federation of Asian and Pacific People of Guam luncheon on May 20, 2012, in celebration of Asian American Pacific Island Heritage Month.
According to their booklet, the Guam Federation of Asian and Pacific People of Guam was organized in 1993 with membership composing of the Filipino Community of Guam, Korean Association of Guam, Vietnamese Association of Guam, Indian Community of Guam, the Chinese-Vietnamese Friendship of Guam and the Chinese Community. Since then, other associations have been added, namely, the Federation of Chinese Overseas, Palau Community of Guam, Asahi Club of Guam, Peleliu Club of Guam, The FSM Association of Guam, and the Chuukese Association of USA. Their objective is to promote friendship and camaradie among themselves, with the people of Guam, and with the people of the neighboring island countries.
Attached is a photo that was taken of the membership at the lunch, most of them depicting their country’s traditional clothing.
Friday 21 June 2013
Woodlands Man Heads to Prison for Using Fake CIA CredentialsRead the Press Release
HOUSTON - Paul Alan White, aka Jonathan Alan Davenport, 57, of The Woodlands, has been ordered to prison following his two convictions of impersonated a public servant, United States Attorney Kenneth Magidson announced today. Davenport pleaded guilty Tuesday, April 3, 2013.
Today, U.S. District Judge Ewing Werlein Jr., who accepted the guilty plea, handed White a sentence of 24 months on each of the two counts of conviction to be served concurrently. He was further ordered to pay a $500 fine. In handing down the sentence, Judge Werlein noted to the defendant that the worthiness of what a person is, is not gauged by what title they seek.
White posed as a CIA agent to others at different times during 2011 and 2012 in order to obtain personal information from individuals and to have authorities give him privileges as well as official record documents.
During March 2011, White had convinced a co-worker that he worked with Special Ops within the CIA and that they had to fill out an application form for a security clearance with the CIA. White apparently obtained the form from the Internet. The co-worker completed the form, which included personal information, such as names of family members and friends, education, employment history and personal identification data such as a Social Security number, a Texas Driver’s license number and a U.S. passport number. As directed by White, the co-worker also ordered their own credit report and gave White a copy of their passport.
The next month, White also attempted to recruit the co-worker’s friend from the co-worker’s Facebook site, using an alias. White reported to be conducting a reference check and also tried to recruit them for a position with the CIA. At the request and demand of White, pretending to act as an agent under the authority of the CIA, the friend sent the security clearance form via Fed-Ex with their personal information on it along with a copy of their birth certificate, Social Security card, driver’s license and passport.
Also that month, White introduced himself to Texas Department of Public Safety troopers as an agent working for the CIA. White showed a badge and a credential thought to be from the CIA, and stated he had retired from CIA and was rehired to run “backgrounds” on people. White, while pretending to be an officer and employee of the United States, asked the trooper to run a criminal history check on his co-worker. White represented the request as an “official request” from a CIA officer. The trooper complied with White’s request and provided the result.
Later, the CIA was contacted to conduct a check for any and all employment either directly or indirectly of White, aka Davenport. The CIA confirmed he did not work for the agency in any capacity. A search warrant was executed at White’s home revealed several false and fraudulent purported official U.S. government identifications and badges allegedly belonging to the CIA.
White will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the FBI and Houston Police Department. Assistant U.S. Attorney Joe Porto is prosecuting the case.
Wilmington Man Sentenced to 15 Years Imprisonment for Role in International Drug Trafficking ConspiracyRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Kelvin Cook, age 35 of Wilmington, Delaware, was sentenced on June 20, 2013, to a term of imprisonment of fifteen (15) years for his role as a leader of an international drug trafficking conspiracy.
According to facts introduced in prior hearings, Cook was one of the leaders of an organization that recruited multiple drug couriers to travel to Panama in order to smuggle cocaine and heroin into the United States. Agents identified a total of at least nineteen (19) couriers who took smuggling trips on behalf of the organization, and who smuggled, or attempted to smuggle, more than thirteen (13) kilograms of cocaine and five kilograms of heroin from Panama to Delaware. Cook was also responsible for a significant crack cocaine distribution network on the 500 block of West Sixth Street in Wilmington. In addition, on one occasion Cook obtained more than 100 grams of heroin from a Texas source, who in turn imported heroin directly from the country of Afghanistan.
United States Attorney Charles M. Oberly, III, stated, “The Court’s sentence appropriately punished Mr. Cook for his involvement in a major drug trafficking organization that had a negative impact on Wilmington and the surrounding communities. It further sends a message that there are significant consequences for engaging in large-scale drug trafficking within the State of Delaware. I commend our law enforcement partners for their hard work and considerable cooperation over the course of a three-year investigation that dismantled the organization and brought over 20 individuals to justice.”
The investigation was led by the Drug Enforcement Administration, the Department of Homeland Security – Homeland Security Investigations, the Internal Revenue Service – Criminal Investigation Division, and the Wilmington Police Department.
This case is being prosecuted by Assistant United States Attorney Robert F. Kravetz. For further information, contact Press Information Officer Kimberlynn Reeves at (302) 573-6277, ext. 16287.
For additional information regarding the case, see also:
http://www.justice.gov/usao-de/pr/man-pleads-guilty-panamanian-drug-trafficking-conspiracy
http://www.justice.gov/archive/usao/de/news/2011/Panama%20Press%20Release.html
http://www.justice.gov/archive/usao/de/news/2012/07-27.html
http://www.justice.gov/archive/usao/de/news/2012/07-25.html
http://www.justice.gov/archive/usao/de/news/2012/Banerjee%20Plea%20Release.htmlWeek in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Jose Nambo, 32, of St. Anne, Illinois, pled guilty before District Judge Robert L. Miller, Jr. to the felony offense of knowingly or intentionally conspiring to deliver a mixture or substance that contained over 500 grams of cocaine and/or 100 kilograms of marijuana. This charge was filed as a result of an investigation by the Drug Enforcement Agency.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Deandre Grant, 35, of Michigan City, Indiana, was sentenced by District Judge Robert L. Miller to 3 years of probation, $19,657 restitution and 6 months home detention, after pleading guilty to the felony offense of theft of government property.According to documents filed, Grant repeatedly lied in order to continue receiving unemployment insurance benefits while actually employed.This case was the result of an investigation by the Department of Labor.This case was prosecuted by Assistant United States Attorney Barbara Brook.
Andres Garcia, 56, of Hoopeston, Illinois, was sentenced by District Judge Robert L. Miller to serve 71 months imprisonment and 3 years supervised release after pleading guilty to the felony offense of knowingly or intentionally conspiring to deliver a mixture or substance that contained over 500 grams of cocaine and/or 100 kilograms of marijuana.According to documents filed, Garcia was involved in drug trafficking activity that spanned Indiana and Illinois.When his home was raided in June of 2012, 26 pounds of marijuana was retrieved by law enforcement officials.This case was the result of an investigation by the Drug Enforcement Agency.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Aurelio A Guerra, 46, of Weslaco, Texas, was sentenced by District Judge Jon E. DeGuilio to serve 106 months, 3 years supervised release on each count (to run concurrently) for a total of 3 years after pleading guilty to the felony offense of selling, distributing, or dispensing marijuana, and possession of a firearm in furtherance of drug trafficking, and aiding & abetting.According to documents filed, Guerra was involved with several others in the distribution of several hundred pounds of marijuana in LaPorte County.During his involvement with the aforementioned distribution, Guerra possessed a firearm and remained near additional weapons maintained to protect the drugs and the sales.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Joint Drug Enforcement Agency/State or Local Task Force.This case was prosecuted by Assistant United States Attorney William Grimmer.
Terry W. Smith, 44, of Michigan City, Indiana, was sentenced by District Judge Jon E. DeGuilio to 3 years supervised probation and $18,330.00 in restitution after pleading guilty to the felony offense of theft of government property.According to documents filed, Smith collected regular unemployment and then extended the benefits while actually employed.This case was the result of an investigation by the Department of Labor.This case was prosecuted by Assistant United States Attorney Barbara Brook.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Charles Johnson, Jr., 33, of Gary, Indiana, pled guilty before Senior District Judge James Moody to the felony offense of distribution of crack cocaine.This charge was filed as a result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case is being prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Christopher Castro, 33, of Lorain, Ohio, a defendant in the case US v Yanez et al., pled guilty before Senior District Judge James Moody to the felony offense of possession with the intent to distribute cocaine.This charge was filed as a result of an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorney Joshua Kolar.
Jon Erik Lilly, 27, of Cedar Lake, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offense of receipt of child pornography.Sentencing has been set for 9/26/13.This charge was filed as a result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Hammond Police Department.This case is being prosecuted by Assistant United States Attorney Jill Koster.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Eugene Wilson, Sr., 56, of Merrillville, Indiana, was sentenced by Senior District Judge Rudy Lozano to 60 months imprisonment and 4 years of supervised release after being found guilty at trial of felony offenses of wire fraud and structuring transactions to evade reporting requirements. Wilson stole approximately 1.5 million dollars from three groups of investors.The FBI received a complaint that Wilson had defrauded individuals of money through a Ponzi type scheme.Essentially, Wilson convinced individuals to invest money with him by promising a very high rate of return.To lure the investor into the scheme, Wilson created a written agreement and promised to keep the funds in an escrow account.In all three events, upon receiving the money, Wilson immediately wire transferred the funds to third parties, most who banked in Europe.Wilson then lied about the whereabouts of the funds and finally ended communications with the investors.In 2008, Wilson received a series of wire transfers.He then engaged in a series of bank transactions to avoid the bank reporting that he had received more than $10,000 in cash.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Gary Bell.
Scott R. Becker, 47, and Christina Becker, 49, of Lafayette, Indiana, were sentenced by District Judge Joseph Van Bokkelen on June 19.
Scott Becker was sentenced to 90 months imprisonment and 10 years of supervised release after pleading guilty to the felony offenses of mail fraud, wire fraud and possession of child pornography. The Court also ordered Mr. Becker to pay restitution as follows:$250,000 to Stelko, and the balance due on the mortgage to his Colorado home (jointly and severally with Christina Becker, his wife and co-defendant). To accomplish the payment of restitution, the Beckers forfeited the Colorado property to the U.S. government.From January 1, 2002 and continuing to July 27, 2009, Scott Becker devised a scheme and artifice to take advantage of his position as General Manager of Stelko Electric to fraudulently obtain tools, building materials, labor and money, which rightfully belonged to Stelko, totaling over $250,000.00 in value to aid in the building of a home in Colorado.There were three different aspects to Becker’s scheme: the theft of labor, materials and tools used to build his Colorado home; the theft of funds from Stelko via contract fraud; and the theft of Stelko materials which Becker sold for cash.In June 2009, a search of Becker’s work computer for evidence of employee theft revealed video images of a minor teenage girl in a state of undress.
Christina Becker was sentenced to 1 day imprisonment with time considered served and 3 years of supervised release after pleading guilty to wire fraud affecting a financial institution. From on or about January 1, 2009 and continuing to on or about March 4, 2009, the Beckers devised a scheme and artifice to obtain mortgage funds totaling $275,000.00 from Regions Bank d/b/a/ Regions Mortgage Corporation (hereafter “Regions Bank”) located in Birmingham, Alabama, by providing false and fraudulent information on and with their mortgage application for the Colorado home and knowingly caused to be transmitted by means of a wire communication in interstate commerce, any signs, signals, or sounds, to wit: a wire transfer of $270,737.44 from Regions Bank in Birmingham, Alabama to a title company located in Durango, Colorado.
This case was the result of an investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Kokomo Police Department.This case was prosecuted by Assistant United States Attorney Jill Koster. States Attorney Jill Koster.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS:
Michael A Banks, 22, of Fort Wayne, Indiana, was sentenced by District Judge Theresa L. Springmann to serve 50 months imprisonment and 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm.According to documents filed, Banks was convicted in 2010 of being in possession of narcotics.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Lovita Morris-King.
Waxahachie Man Charged with Firearms Offense Is Ordered Detained by Federal JudgeRead the Press Release
Clayton Earthman Arrested This Week with a Firearm, Large Amount of Chemicals, Supplies and Literature Suspected to be for Bomb Making Purposes
DALLAS — Clayton Todd Earthman, 24, of Waxahachie, Texas, appeared this afternoon in federal court, before U.S. Magistrate Judge Irma C. Ramirez, who ordered that he remain in federal custody during the pendency of the matter. Earthman was arrested on June 18, 2013, when officers with the Dallas Police Department (DPD) discovered a firearm, bomb-making chemicals and related literature in his vehicle. He is charged in a federal criminal complaint with being an unlawful user and addict of controlled substances in possession of a firearm. The announcement was made today by U.S. Attorney Sarah R. Saldaña.
According to the complaint, on the afternoon of June 18, 2013, DPD officers conducted a traffic stop on a vehicle driven by Earthman. Officers recovered a .357 Glock pistol, large amounts of chemicals, supplies and literature suspected to be for bomb-making purposes, hand-written notes describing how to build explosive devices and booby traps from his vehicle.
Earthman later advised that he is a drug user, had used methamphetamine three days prior and was addicted to marijuana. He advised that he is taking methadone to quit using heroin, which he used for one year. Earthman further advised law enforcement that he is a “Doom’s day prepper,” and that he had more firearms and large amounts of chemicals in his residence.
During today’s hearing, evidence was presented that officers discovered additional unlawful controlled substances, a firearm, chemicals and a live alligator when they executed a federal search warrant at Earthman’s residence on June 20, 2013.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for the offense as charged is 10 years in federal prison.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dallas Police Department. Assistant U.S. Attorney Taly Haffar is in charge of the prosecution.
Two Repeat Bank Robbers Sentenced to 70 Years in PrisonRead the Press Release
Two men with a quarter century history of robbing banks, were sentenced today to 70 years in prison for a string of bank robberies in the Seattle area, announced U.S. Attorney Jenny A. Durkan. The two men, 66-year-old JACK P. SEXTON and 65-year-old RONALD C. KETTELLS were convicted in March 2013 of conspiracy to commit bank robbery, three armed bank robberies and using a firearm during a crime of violence. At sentencing U.S. District Judge Robert S. Lasnik said these were some of the longest sentences he has handed down, noting the men’s criminal history is “remarkable in its length and depth.”
According to testimony at trial and records filed in the case, the two men were linked to three bank robberies in the Seattle area between August and October 2011. On August 8, 2011 the two men robbed a Key Bank branch on Holman Road in north Seattle. In that case the men used a bandana and a t-shirt to disguise their faces. They pointed a handgun at the tellers and threatened to kill them if they did not lie down on the floor.
They next robbed the Wells Fargo bank branch on Greenwood Avenue in Shoreline on September 12, 2011. The men wore masks: one of an elderly man, the other of President Richard Nixon. The men were armed with a pistol grip shotgun and a handgun.
Finally, on October 20, 2011, the men robbed a Washington Federal Bank branch in West Seattle. One wore a Hillary Clinton mask, the other the same “elderly man” mask as in the previous robbery. Again they pointed the pistol grip shotgun and handgun at the tellers and demanded money. An elderly woman who was a customer at the bank was injured when she was forced to the ground by one of the men.
Key information in the case came from an alert neighbor at one of the robberies who noted the license plate number of the get-away car. The car was ultimately linked to SEXTON and the person who had sold him the vehicle knew where SEXTON and KETTELLS were living. Both had recently been released from prison. A search of their vehicles and residence turned up bags used in the robberies as well as four firearms – including the ones used in the robberies. Investigators also found the masks used in the robbery, and DNA on the inside of the masks linked them to both men.
Both men have numerous prior convictions. KETTELLS has convictions dating back to 1963 for assault, burglary and bank robbery. Similarly, SEXTON has convictions dating back to the 1960s for burglary, forgery, and armed bank robbery.
Writing to the court prosecutors noted these “crimes were recklessly violent and directly endangered the lives of numerous victims and responding officers. In each of the robberies (the men)… aggressively brandished a loaded firearm, shouted threats and profanities at the victims, and made various threatening actions such as banging a gun on a desk, racking a shot gun, and waving a gun in close proximity to a teller’s face with (a) finger on the trigger.”
The men were ordered to pay $29,628 in restitution.
The case was investigated by the FBI’s Seattle Safe Streets Task Force, which includes investigators from the Seattle Police Department, as well as the King County Sheriff’s Office
The case was prosecuted by Assistant United States Attorneys Andrew Friedman and Francis Franze-Nakamura.
Two Minnesota Men Indicted for Conspiring to Defraud Equipment-leasing and Insurance CompaniesRead the Press Release
MINNEAPOLIS—A federal indictment unsealed late yesterday charges two Minnesota men with conspiring to defraud equipment-leasing companies and insurance companies. The indictment, which was filed under seal on June 18, 2013, charges Joseph Michael Hanson, age 54, of Mendota Heights, and Timothy John Lambrecht, age 41, of Medina, with one count of conspiracy to commit mail and wire fraud. The indictment was unsealed following Lambrecht’s initial appearance in federal court on June 20.
During the time relevant to this case, Lambrecht owned and controlled InCompass, Inc., a corporation engaged in the business of providing information technology services to third parties. Lambrecht also owned and controlled TRAC Enterprises, a shell corporation that he purportedly used to perpetrate parts of this fraud scheme. Together, Lambrecht and Hanson owned HLI, which, in turn, owned the building in New Brighton where InCompass operated (the “HLI Building”). The defendants allegedly paid a portion of the fraud proceeds to the lender that financed the defendants’ acquisition of the HLI Building.
As to the fraud, the indictment alleges that between December 2008 and May 2012, the defendants conspired with others to lease or to cause third parties to lease computer equipment at greatly inflated prices to create a pool of funds from which the defendants then paid their personal and business expenses. They also allegedly submitted false claims to insurance companies, claiming their equipment had been stolen.
For example, in December 2008, Lambrecht purportedly caused TRAC to purchase a storage area network (“SAN”) device for $27,700. In February 2009, Lambrecht then allegedly caused Wells Fargo Equipment Finance (“WFEF”) to purchase the SAN from TRAC at the greatly inflated price of $112,300 and then lease it to InCompass. Lambrecht reportedly hid from WFEF that he owned both TRAC and InCompass. He also allegedly misled WFEF into paying for SAN training and consulting services, purportedly worth $28,750, that were never provided. In all, the indictment claims Lambrecht obtained more than $246,179 from WFEF, which he used to prop up InCompass and pay against the loan on the HLI Building.
The indictment also alleges that in July 2010, Lambrecht falsely reported to his insurance carrier that the SAN had been stolen from InCompass. The defendants reportedly submitted an invoice to the insurance company from a business owned by Hanson in support of Lambrecht’s claim for reimbursement of more than $170,000 in replacement equipment and data recovery services. Those replacements and services, however, were never purchased or provided. Instead, between July 2010 and January 2011, Lambrecht received more than $498,000 from the insurance company, purportedly depositing the funds into the bank accounts of InCompass and TRAC. And during that entire time, InCompass continued to use the SAN in the course of its business.
In addition, the indictment alleges that on March 25, 2009, the defendants and others caused an entity owned by an unnamed co-conspirator to purchase from InCompass a SAN for approximately $74,100, even though the original purchase price was $22,000. Moreover, on July 21, 2010, an unnamed co-conspirator allegedly made a false claim to another insurance company that the SAN had been stolen from InCompass, leading to an insurance payout of $160,000.
As a result of this alleged fraud conspiracy, WFEF lost at least $100,000 and the insurance companies lost approximately $658,000.
If convicted, the defendants face a potential maximum penalty of five years in prison. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney David J. MacLaughlin.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Two Former Border Patrol Agents Sentenced for Alien Smuggling, Bribery and Money LaunderingRead the Press Release
Former U.S. Border Patrol Agents Raul and Fidel Villarreal, brothers who smuggled at least 1,000 illegal immigrants into the United States in exchange for more than $1 million in bribes, were sentenced today to 35 and 30 years in prison, respectively.
The brothers were convicted by a federal jury on August 10, 2012, of conspiracy to bring in illegal aliens for financial gain, multiple counts of bringing in illegal aliens for financial gain, conspiracy to launder money and receiving bribes. The brothers smuggled their customers while on duty, in uniform and in their Border Patrol vehicles and were assisted by a Tijuana police chief.
In handing down the sentences and $250,000 fines for each, U.S. District Judge John A. Houston told the brothers he was “disgusted” by their actions. The judge also noted that ignoring their duty to protect the border “impacted national security,” and that he wanted the lengthy sentences to send a message that such a serious violation of the public’s trust would not be tolerated.
At the hearing, Assistant U.S. Attorney Tim Salel urged the judge to impose the harshest sentence, primarily because the brothers abused the sacred trust of the public and neglected to protect the border. But he also noted that as law enforcement closed in, the brothers planned to kill co-conspirators to prevent them from testifying. And he argued the brothers deserved a long sentence because they had no regard for the safety of the illegal border crossers who were recklessly jammed into Border Patrol vehicles and transported at high speeds over treacherous terrain, just to maximize profits.
“This is a case of unmitigated greed and betrayal by two senior Border Patrol agents who smuggled aliens while on duty instead of patrolling the border,” Salel told the court. “The defendants are experienced agents, 10-year veterans. This was not a case of misguided rookies who got involved with the wrong crowd. They knew they had pledged to defend the border. Yet these guys set up their own organization to line their pockets.”
U.S. Attorney Laura Duffy said she was very pleased with the outcome of the case.
“The audacious way these brothers so easily tossed aside their loyalty to their country and to fellow agents,who put their lives on the line every day protecting our borders, is appalling,” Duffy said. “This sentence provides justice for a public betrayed, and reflects that this was, by far, among the most egregious violations of the public’s trust we’ve seen by federal officials in many years.”
“Today’s sentencing sends a clear message: DHS will not tolerate any type of employee misconduct, especially criminal activity that undermines the core values of our organization and the thousands of DHS employees who uphold those values in their mission to protect the American public,” said Joe Jeronimo, special agent in charge for the Office of Professional Responsibility, Western Region. “I commend the integrity and perseverance of all the investigators and prosecutors who worked tirelessly to ensure that justice was fully served in a criminal case that unfortunately involved a very egregious breach of public trust.”
Dennis M. McGunagle, special agent in charge of the Office of Inspector General, Department of Homeland Security, said, “The DHS Office of Inspector General has no tolerance for acts of corruption committed by DHS employees. We commend the efforts of the U.S. Attorney’s office for bringing these individuals to justice.”
While working as agents, the brothers formed a smuggling organization with what seemed to be the perfect cover: Many of their customers were shuttled in squad cars by a Tijuana police chief to the border. The customers would be transported down rugged Otay Mountain trails or through remote areas near Imperial Beach by the Villarreals in Border Patrol vehicles on the way to remote drop-off locations. If anyone were to question them, they could claim the passengers were being arrested. It’s what they referred to as the “guaranteed method.”
“The Villarreals used their specialized training and knowledge of the border – particularly the vulnerable smuggling routes near Imperial Beach and Otay Mountain – to smuggle aliens,” Salel wrote in court documents. “By pretending to arrest the aliens and transporting them in their assigned Border Patrol vehicles, the Villarreals could ‘hide in plain sight’ and maintain plausible deniability if another law enforcement agent was watching them.”
Raul Villarreal, the younger brother who was hired by the Border Patrol in 1995 to work at the Imperial Beach station, eventually became a public information officer and once made a public service announcement warning the Mexican people about the dangers of alien smugglers who take advantage of illegal border crossers. Ironically, for the announcement Raul played the part of an unscrupulous smuggler who showed callous indifference to the welfare of crossers. Judge Houston said his sentence was longer because he was the organizer and ring leader.
Fidel Villarreal, who was hired in 1998, also rose through the ranks to become a mountain supervisor for the Brown Field Border Patrol station. He was the supervisor and manager of the smuggling operation.
The brothers operated the smuggling business for 14 months in 2005 and 2006, conspiring with partners in Tijuana – including Claudia Gonzalez, Armando Garcia and even a Tijuana police chief.
Gonzalez would leave envelopes containing cash – usually around $10,000 to $13,000 per smuggling trip, three or four times a week and sometimes multiple times a day - under the front seat of the Villarreals’ luxury vehicles, which were usually parked at a shopping mall in Tijuana. Fidel had a BMW and Raul had a Mercedes SUV.
During the investigation, agents used multiple confidential informants to infiltrate the criminal organization, and installed cameras on poles in areas where migrants were dropped off. They planted undercover recording devices, put tracking instruments on Border Patrol vehicles and even followed a smuggling load by airplane.
In June of 2006, the Villarreals were tipped off about the investigation, abruptly resigned and fled to Guadalajara along with other coconspirators. While living in Mexico, they kept tabs on the investigation and warned members of the organization not to cooperate with authorities. The brothers’ desperation piqued and they made plans to have coconspirators murdered in Mexico. The murders never took place.
In one instance, they held a gun to the head of a coconspirator, who supervised some of the drivers who the Villarreals suspected of cooperating with U.S. officials, but he was able to escape. Unbeknownst to the Villarreals, The coconspirator met with another coconspirator in a graveyard in Tijuana, warning her of the plot to kill her and urging her to go to San Diego.
In April of 2008, the brothers were indicted, along with Garcia and Gonzalez. They were arrested in Tijuana in October of 2008 and eventually extradited to the U.S. to face trial. Garcia was convicted along with the Villarreal brothers; Gonzalez pled guilty on December 10, 2009 to conspiracy to bring in illegal aliens for financial gain, bribery, and money laundering. Garcia is scheduled for sentencing on July 22. Gonzalez was sentenced in August 2012 to time served, which was three years, 10 months.
DEFENDANTS Case Number: 08CR1332-JAH Raul Villarreal
Fidel Villarreal
Armando Garcia
Claudia Gonzalez SUMMARY OF CHARGESConspiracy to Bring in Illegal Aliens for Financial Gain - Title 18, United States Code, 371
Maximum penalties: 5 years' imprisonment and $250,000 fineBringing in illegal aliens for financial gain - Title 8, United States Code, Sections 1324(a)(2)(B)(ii)
Maximum penalties: 10 years' imprisonment and $250,000 fineBribery - Title 18, United States Code, Sections 201(b)(2)(A) and (C)
Maximum penalties: 15 years' imprisonment and greater of $250,000 fine or three times the amount of the bribeConspiracy To Launder Money - Title 18, United States Code, Sections 1956(a)(2)(A) and (h)
AGENCIES
Maximum penalties: 20 years' imprisonment and greater of $500,000 fine or twice the value of the fundsImmigration and Customs Enforcement’s Homeland Security Investigations
Department of Homeland Security, Office of Inspector General
ICE Office of Professional Responsibility
U.S. Border PatrolThree Rochester Gang Members Indicted; Charged with Gun and Drug ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging three people with narcotics trafficking, including conspiracy to possess with intent to distribute 280 grams or more of crack cocaine and marijuana, and use and possession of firearms in furtherance of drug trafficking.
Named in the Indictment are: Jacob Rivera, a/k/a “JJ,” 22, Kevin Feliciano, a/k/a “Nash,” 19, and Marius Johnson, a/k/a "Florida," 27, all of Rochester, N. Y.
The drug conspiracy charges carry a mandatory minimum penalty of 10 years in prison and a maximum of life, a fine of $10,000,000 or both. The gun charges carry a mandatory minimum penalty of ten years in prison which must be served consecutively to any other conviction, and a $250,000 fine.
Assistant U.S. Attorney Douglas E. Gregory, who is handling the case, stated that according to the indictment, the defendants were leaders of a street level drug trafficking organization that from time to time referred to themselves as “M.D.B.” or “The Broezel Boys.” Members and associates of M.D.B. controlled the open air drug market in a multi-block area near the intersection of Dewey and Lexington Avenues, including all of Broezel Street, the north end of Maryland Street, portions of Driving Park and portions of Lakeview Park in Rochester. M.D.B. members and associates also maintained and operated several drug houses in Rochester including the duplex residence at 325/327 Lexington Avenue, the upstairs apartment at 171 Maryland Street, the upstairs apartment at 316 Lakeview Park and 672 West Main Street, each for the purpose of possessing, manufacturing, distributing, and using controlled substances.The indictment further stated that members and associates of M.D.B. routinely possessed and used firearms to maintain and expand their territory; used violence and threats of violence against unaffiliated persons who attempted to sell illegal controlled substances within their territory; used violence and threats of violence against witnesses who were viewed as hostile to the interests of M.D.B.; and enforced a code of silence among members and others to prevent information concerning the activities of M.D.B. to be provided to law enforcement.
“This Office will not permit violent gangs to operate in the City of Rochester,” said U.S. Attorney Hochul. “Today’s case marks yet another instance where this Office, working with law enforcement officers from all levels of Government, used federal tools to keep the people of the City safe. The public is reminded that if they see any indication of gang activity, narcotics trafficking, or indeed any crime, to let an officer or this Office know the information. To repeat an earlier message – if you see something, say something, and we in law enforcement will do something.”
The indictment is the culmination of an investigation on the part of the Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction Resident Agent in Charge Scott Heagney, the Rochester Police Department, under the direction of Chief James Sheppard, the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel, and the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Three Mississippians Sentenced to Prison for Tax Fraud ConspiracyRead the Press Release
Natchez, Miss – Stephanie Odoms, 44, of Hermanville, Howard Jackson, 52, of Hermanville, and Shandy Davis, 37, of Port Gibson, were sentenced to federal prison on charges related to a tax fraud conspiracy, announced U.S. Attorney Gregory K. Davis and Gabriel L. Grchan, Special Agent in Charge of IRS Criminal Investigation New Orleans Field Office.
Stephanie Odoms was sentenced to 37 months in federal prison followed by three years of supervised release for conspiracy to commit mail fraud.
Howard Jackson was sentenced to 46 months in federal prison followed by three years of supervised release for structuring and evading financial transaction reporting reqirements.
Shandy Davis was sentenced to 27 months in federal prison followed by three years of supervised release for structuring and evading financial transaction reporting reqirements.
Odoms and Jackson conspired to defraud the government by filing false income tax returns totaling more than $115,000. Davis, who worked as a teller at a bank in Port Gibson, Mississippi, cashed the refund checks for Odoms and Jackson.
This case was investigated by IRS Criminal Investigation, the U.S. Secret Service, and the U.S. Postal Inspection Service. It was prosecuted by Assistant U.S. Attorney Harold Brittain.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Substitute Teacher and Boy Scouts Camp Counselor Facing Child Pornography ChargesRead the Press Release
BOSTON – A substitute teacher was charged today with possessing child pornography.
Bryce Garner, 22, of East Sandwich, was charged in a criminal complaint with possession of child pornography. On June 20, 2013, Garner was arrested on these charges. Garner is currently employed at a hotel, but also works part-time as a substitute teacher, babysitter, and camp counselor.
According to court documents, undercover agents in Oklahoma City, OK learned that Garner was using the peer-to-peer file trading system, Limewire, to share child pornography. On June 20, 2013, agents executed a search warrant at Garners’ home. During the time of the search warrant, an unrelated 14-year-old boy that Garner had previously babysat was found visiting the home since earlier that week. Initially, Garner denied downloading the images, but after agents searched the computer, Garner admitted to possessing child pornography. Garner further admitted that he is attracted to young boys and has been for several years.
The statute provides for a maximum of 20 years in prison, to be followed by up to lifetime supervised release and a $250,000 fine.United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Stacy Dawson Belf of Ortiz’s Major Crimes Unit.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274, and messages will be promptly returned.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the complaint affidavit are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Statement of Attorney General Eric Holder on the <br /> Nomination of Jim Comey as Director of the Federal Bureau of InvestigationRead the Press Release
Attorney General Eric Holder today issued the following statement regarding President Obama’s nomination of Jim Comey to be Director of the FBI:
“As an extraordinarily dedicated public servant, a talented national security and law enforcement executive, and a principled leader with extensive experience in government and the private sector, Jim Comey is uniquely qualified to serve as the next Director of the Federal Bureau of Investigation.
“I’ve known Jim for almost 20 years, and have always found him to be a person willing to try new methods and innovative tools – while adhering to our most treasured values – in keeping the American people safe. He is a seasoned prosecutor – and former United States Attorney – whose impeccable judgment has set him apart from his peers. He is a proven leader – and former Deputy Attorney General – whose formidable intellect, indisputable integrity, and unwavering dedication to the rule of law will undoubtedly serve him well as FBI Director.
"Above all, Jim is, and has always been, a faithful servant of the American people. I am confident that he will be a superb FBI Director, providing the strong and steady leadership that the Bureau’s extraordinary men and women deserve. I applaud the President’s decision to nominate Jim Comey and I look forward to working closely with him, upon his confirmation, to continue protecting the American people from financial fraud, violent crime and terrorism.”
St. Paul Felon Indicted for Possessing A .22-caliber HandgunRead the Press Release
MINNEAPOLIS—A federal indictment unsealed earlier this week charges a 23-year-old St. Paul felon with possessing a .22-caliber handgun. The indictment specifically charges Phuvanath Ronald Mounthachack with one count of being a felon in possession of a firearm. The indictment was unsealed following Mounthachack’s initial appearance in federal court on June 19.
The indictment alleges that on January 15, 2013, Mounthachack possessed the .22-caliber, semi-automatic handgun. Because he is a felon, Mounthachack is prohibited under federal law from possessing a firearm or ammunition at any time. His prior Wright County convictions include aggravated robbery (2007) and fifth-degree sale of a controlled substance while employing a dangerous weapon (2009).
If convicted, Mounthachack faces a potential maximum penalty of ten years in prison. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Minneapolis Police Department and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.
The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than a dozen serious habitual criminals through Project Exile Minneapolis.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
St. Francis Man Charged with Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota man has been indicted by a federal grand jury for Sexual Abuse.
Joseph R. Blue Bird, age 26, was indicted on September 19, 2012, and appeared before U.S. Magistrate Judge Mark A. Moreno on June 19, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is any term of years up to life imprisonment, a $250,000 fine, or both; a mandatory minimum of 5 years up to life of supervised release and an additional mandatory minimum of 5 years up to life of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The charge is merely an accusation and Blue Bird is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe, Law Enforcement Services. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Blue Bird was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Silvis Man Sentenced to 25 Years in Prison for Production, Possession of Child PornographyRead the Press Release
ROCK ISLAND, Ill. – A Silvis, Ill., man, John J. Frazer, 32, was sentenced yesterday to serve a term of 25 years (300 months) in prison for producing and possessing child pornography. U.S. District Judge Sara Darrow further ordered that Frazer serve a life-time term of supervised release following his release from prison. Frazer’s sentence was the result of his indictment on Sept. 19, 2012, and subsequent guilty plea on Feb. 6, 2013.
The investigation into Frazer’s conduct began on Aug. 21, 2012, when the Danish National Police alerted the U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) Cyber Crime Center that an Internet Protocol (IP) address from inside the United States had posted photographs of child pornography onto a Russian website. Authorities thereafter linked the IP address to Frazer’s apartment in Silvis, and executed a search warrant at Frazer’s apartment and arrested Frazer on August 27, 2012.
Subsequent investigation revealed that the photographs of child pornography that had been posted to the Russian website involved photographs that Frazer had taken of a known minor female on or about Aug. 20, 2012. These photographs, and additional photographs and videos of child pornography involving unknown other minors, were also found on Frazer’s cell phone and laptop computer. Notably, the subsequent investigation also revealed that Frazer demonstrated an intent on Sunday, Aug. 26, 2012, to take a video of the known minor female engaging in sexual acts the next day after school. Because foreign, federal, and local authorities reacted quickly to the posting of the images onto the Russian website, however, authorities were able to arrest Frazer shortly after noon on Monday, Aug. 27, 2012.
The case was investigated by the U.S. Immigration and Customs Enforcement Homeland Security Investigations; the Moline Police Department; and the Silvis Police Department. Assistant U.S. Attorney Kirk W. Schuler prosecuted the case in cooperation with the Rock Island County State’s Attorney’s Office.
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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Richmond Man Convicted of Holding Undercover Agent at Gunpoint During Attempted RobberyRead the Press Release
OAKLAND -- Khusar Mobley was convicted by a federal jury yesterday of assault on a federal officer, robbery, and brandishing a firearm during a violent crime, announced United States Attorney Melinda Haag. The guilty verdict followed a four-day jury trial before The Honorable Yvonne Gonzalez Rogers, United States District Court Judge.
Evidence at trial showed that Mobley,19, of Richmond, California, used a loaded firearm in an attempt to rob an undercover agent from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) during an undercover operation. Mobley’s co-defendants – Otis Mobley and D’Marce Hutcherson – pleaded guilty and were sentenced to 114 months and 104 months, respectively, in May 2013.
Mobley was charged by Indictment on April 5, 2012, with one count of Conspiracy to Commit Robbery of Mail, Money, or Other Property of the United States, and Assault on a Federal Officer, in violation of Title 18, United States Code, Section 371; one count of Assault on a Federal Officer with a Deadly Weapon, in violation of Title 18, United States Code, Section 111(b); one count of Robbery of Mail, Money, or Other Property of the United States, in violation of Title 18, United States Code, Section 2114(a); and one count of Using, Carrying, Possessing, and Brandishing a Firearm During a Crime of Violence, in violation of Title 18, United States Code, Section 924(c). He was found guilty on all counts.
Mobley has been in custody since his arrest on March 28, 2013. His sentencing hearing is scheduled for October 23, 2013 before the Honorable Judge Gonzalez Rogers in Oakland. The maximum statutory penalties for each count are as follows:
Count One: 18 U.S.C. § 371 - Conspiracy to Commit Robbery of Mail, Money, or Other Property of United States and Assault on a Federal Officer.
(1)Imprisonment:Maximum 5 Years Imprisonment(2)Fine:Maximum $250,000(3)Supervised Release:Maximum 3 YearsCount Two: 18 U.S.C. § 111(b) - Assault on a Federal Officer with a Deadly or Dangerous Weapon.
(1)Imprisonment:Maximum 20 Years Imprisonment(2)Fine:Maximum $250,000(3)Supervised Release:Maximum 3 YearsCount Three: 18 U.S.C. § 2114(a) - Robbery of Mail, Money, or Other Property of United States.
(1)Imprisonment:Maximum 25 Years Imprisonment(2)Fine:Maximum $250,000(3)Supervised Release:Maximum 3 YearsCount Four: 18 U.S.C. § 924(c)(1)(A)(ii) - Using, Carrying and Brandishing a Firearm During and in Relation to a Crime of Violence.
(1)Imprisonment:Maximum Life Imprisonment
Mandatory Minimum 7 Years Imprisonment Consecutive To Any Other Term Of Imprisonment(2)Fine:$250,000(3)Supervised Release:Maximum 5 YearsHowever, any sentence following this conviction 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.
James Mann and Natalie Lee are the Assistant U.S. Attorneys who prosecuted this case with the assistance of Patty Lau, Vanessa Vargas, and Katie Turner. The prosecution is the result of an investigation by the ATF and various local police departments.
Ranking Gang Member Sentenced to 47 1/2 Years in Prison for Planned Armed Home InvasionsRead the Press Release
NASHVILLE, Tenn .- June 21, 2013 - Leonard Baugh a/k/a Hype, age 35, of Nashville, was sentenced to 570 months imprisonment (47 ½ years) yesterday by Senior U.S. District Judge John Nixon, following his conviction on April 2, 2013 for a series of offenses involving planned home invasion robberies which he conspired to commit with fellow Rollin’ 60s Crips street gang members by using contraband cellular telephones while serving a state prison sentence at Riverbend Maximum Security Institution in Nashville .
“This sentence effectively removes this defendant from our communities for the rest of his life. He victimized multiple people in his 1997 home invasion offense, and continued to engage in that same conduct over a dozen years later. Imprisonment in the state prison did not deter him,” stated Acting United States Attorney David Rivera. “This prosecution and lengthy prison sentence demonstrates the resolve of the United States Attorney’s Office to prosecute violent crimes as well as how seriously the federal courts treat such crimes.”
Baugh, as well as Omega Harris a/k/a Nino a/k/a Q were convicted of multiple charges by a federal jury after a five week trial which focused on Baugh’s use of contraband cellular telephones while serving a state prison sentence at Riverbend Maximum Security Institution in Nashville. According to the proof at trial, both defendants held the rank of “OG” (Original Gangster) - the highest rank in the Rollin’ 60s Crips street gang, and committed various crimes with other Rollin’ 60s gang members.
Baugh was convicted of conspiring to commit two armed robberies against people he believed to be drug dealers, and with possession of firearms in furtherance of those conspiracies. He was responsible for the multiple guns possessed by the co-conspirators who were to carry out the planned home-invasion style robberies. Baugh was also convicted of conspiring to distribute cocaine and crack cocaine as part of a scheme to raise bond money for two female gang members who had been arrested on state prescription fraud drug charges. Baugh was serving a Tennessee state prison sentence at the time of the offenses, and the trial proof showed he routinely used a contraband cell phone while in Tennessee’s highest security prison to arrange robberies and drug offenses, which were to be committed by other Rollin’ 60s gang members.Harris was convicted of conspiracy to distribute cocaine which was to be taken as part of one of the planned robberies, as well as conspiring to distribute prescription drugs such as Oxycontin.
The proof at trial included evidence that Harris conspired to obtain Oxycontin and other prescription drugs through the use of forged prescriptions as well as through large scale distribution of Oxycontin in various Nashville public housing projects. That proof included estimated distribution of thousands of highly addictive and dangerous Oxycontin 80 milligram pills per week.
Harris was also convicted of being a felon in possession of a firearm, relating to the possession of a folding Kel-Tech Sub 2000 firearm. The proof at trial included tracing that firearm through the hands of over a dozen gang members and associates, including proof that Harris provided that firearm to other gang members for use in other crimes. Harris was acquitted of conspiring to commit various drug-related robberies and the firearms charges related to those conspiracies.
The case was investigated by the FBI, with assistance from other federal and local agencies. This trial was prosecuted by Assistant U.S. Attorney Sunny A.M. Koshy and Special Assistant U.S. Attorney Mario M. Pinto.Pine Ridge Man Guilty of Sexual Contact and Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that Kaleb Mills, age 19, of Pine Ridge, South Dakota has pled guilty to two separate charges.
Mills appeared before U.S. Magistrate Judge Veronica L. Duffy on June 17, 2013 and pled guilty to Abusive Sexual Contact. The maximum penalty upon conviction is 3 years' imprisonment and/or a $250,000 fine.
In April of 2012 at Pine Ridge, Mills engaged in sexual contact with a woman who was not willing and repeatedly voiced her objection. She was in fear of being physically harmed by Mills.
In an additional plea on June 17, 2013, Mills pled guilty to Assault on a Federal Officer. The maximum penalty upon conviction is 1 year of imprisonment and/or a $100,000 fine.
That charge stems from a May 2012 incident at Pine Ridge, when Mills bumped an Oglala Sioux Tribal Officer with his vehicle after the officer stopped him for speeding.
The investigation for both cases was conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Both cases were prosecuted by Assistant U.S. Attorney Sarah B. Collins.
A presentence investigation was ordered and sentencing dates will be set. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Pennsylvania School Cook and Summer Camp Counselor ChargedRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, United States Attorney for the District of Delaware, announced today that Michael J. Barndt, a/k/a “mikecoach73,” age 39, of Sellersville, Pennsylvania, was arrested and charged by criminal complaint on June 19, 2013 with attempted enticement and coercion of a minor and attempted transfer of obscene matter to a minor, in violation of Title 18, United States Code, Sections 2422(b) and 1470. These charges stem from communications in aid of and travel from Pennsylvania to Delaware to engage in sex acts with an individual whom Barndt believed to be a 14 year old girl. In fact, the defendant was communicating over the internet with a Special Agent employed by the Department of Homeland Security, Homeland Security Investigations.
If convicted of the charges, Barndt faces a mandatory minimum sentence of at least ten years of imprisonment and up to life in prison, fines of up to $250,000 for each offense, and a term of supervised release following any prison sentence of at least five years to life.
According to the Complaint, on or about June 7, 2013, Barndt posted an on-line personals ad on www.craigslist.com, “Real Teen Fantasy,” wherein Barndt expressed interest in a teenaged fantasy liaison. An undercover HSI agent posing as a 14 year old girl responded to the ad. Thereafter, Barndt, using screen name “mikecoach73,” engaged in a series of online chats with the undercover agent wherein Barndt both expressed his interest in engaging in sexual relations with the person whom he believed to be a 14 year old child and transmitted to the undercover agent photographs of his exposed genitalia to entice the “girl” to meet him.
On or about June 19, 2013, Barndt made arrangements to travel from his home in Pennsylvania to Delaware for the purpose of engaging in sexual relations with the person whom he believed to be a 14 year old girl. Barndt checked into a hotel at the corner of Route 202 and Naamans Road in New Castle County, Delaware. Barndt also traveled to the nearby Concord Mall and purchased lingerie for the child. Shortly thereafter, Barndt traveled back to the Concord Shopping Mall to pick up the child as planned, where he arrested.
According to the Complaint, Barndt is employed as a cook at the Lakeside School in Horsham Township, Pennsylvania during the school year. During the summer months, Barndt is employed as a camp counselor at “Blue Bell Camp,” in Blue Bell, Pennsylvania. In the fall of 2012, Barndt was also a middle school football coach in the Springfield School District in Montgomery County.
Resident Agent in Charge Jonathan Free, Department of Homeland Security, Homeland Security Investigations noted of the investigation, “HSI will relentlessly pursue those who would try to steal the innocence of Delaware’s children.”
Members of the public with any information about this case are encouraged to contact the Department of Homeland Security’s Wilmington office at (302) 428-0104 x7005.
The charges in the Complaint are only allegations and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The case is being prosecuted by Assistant United States Attorney Edward J. McAndrew and investigated by Department of Homeland Security, Homeland Security Investigations. For further information, please contact AUSA McAndrew at 302-573-6277.Newark Man Charged in Gunpoint Sandwich Shop RobberyRead the Press Release
NEWARK, N.J. – FBI special agents arrested a Newark man at his home this morning in connection with an armed robbery of a Subway restaurant in Verona, N.J., U.S. Attorney Paul J. Fishman announced.
Jamar Darby, 26, is charged by criminal complaint with one count of committing a Hobbs Act robbery and one count of using a firearm during a crime of violence. He appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was held without bail.
According to the criminal complaint filed today:
Between December 2012 and May 2013, Darby participated in a number of armed robberies of New Jersey commercial establishments throughout Essex and Union counties.
For example, on May 20, 2013, Darby brandished a handgun as he and two other men entered the Verona Subway. Darby and another robber restrained a Subway employee by tying the employee’s hands and feet with plastic zip ties and stole money from the cash register before fleeing.
The Hobbs Act charge carries a maximum potential penalty of 20 years in prison. The gun charge carries a maximum potential penalty of life in prison and a mandatory minimum of seven years in prison, which must run consecutively to any other prison term. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s arrest. He also thanked the Belleville, Bloomfield, Kearny, Linden, Maplewood, Newark, Paramus and Verona Police Departments, along with the New Jersey State Police and the Essex County Prosecutor’s Office for their work on this case.
The government is represented by Assistant U.S. Attorneys Jamari Buxton and Rahul Agarwal of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
13-264
Defense counsel: Carl Herman Esq., West Orange, N.J.
Darby Complaint
Newark Man Charged in Gunpoint Sandwich Shop RobberyRead the Press Release
NEWARK, N.J. – FBI special agents arrested a Newark man at his home this morning in connection with an armed robbery of a Subway restaurant in Verona, N.J., U.S. Attorney Paul J. Fishman announced.
Jamar Darby, 26, is charged by criminal complaint with one count of committing a Hobbs Act robbery and one count of using a firearm during a crime of violence. He appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was held without bail.
According to the criminal complaint filed today:
Between December 2012 and May 2013, Darby participated in a number of armed robberies of New Jersey commercial establishments throughout Essex and Union counties.
For example, on May 20, 2013, Darby brandished a handgun as he and two other men entered the Verona Subway. Darby and another robber restrained a Subway employee by tying the employee’s hands and feet with plastic zip ties and stole money from the cash register before fleeing.
The Hobbs Act charge carries a maximum potential penalty of 20 years in prison. The gun charge carries a maximum potential penalty of life in prison and a mandatory minimum of seven years in prison, which must run consecutively to any other prison term. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s arrest. He also thanked the Belleville, Bloomfield, Kearny, Linden, Maplewood, Newark, Paramus and Verona Police Departments, along with the New Jersey State Police and the Essex County Prosecutor’s Office for their work on this case.
The government is represented by Assistant U.S. Attorneys Jamari Buxton and Rahul Agarwal of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
13-264
Defense counsel: Carl Herman Esq., West Orange, N.J.
Darby Complaint
New York Man Who Supplied Cocaine to New Haven Drug Dealers Sentenced to 57 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that AMAURY P’DILLA, also known as “Audi,” 32, of New York, N.Y., was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 57 months of imprisonment, followed by five years of supervised release, for distributing cocaine.
P’DILLA is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants and seizures of narcotics and firearms. The investigation revealed that, between January 2011 and January 2012, P’DILLA supplied wholesale quantities of cocaine to several New Haven-based drug dealers.
On February 13, 2013, P’DILLA pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Haven Man Sentenced to More Than Eight Years for Role in Crack Cocaine Trafficking RingRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MANOKUS FIELDS, also known as “Fresh,” 30, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 97 months of imprisonment, followed by five years of supervised release, for selling crack cocaine. On March 1, 2013, a jury found FIELDS guilty of conspiracy to distribute 280 grams or more of cocaine base (“crack cocaine”).
According to statements made in court and the evidence disclosed during the trial, this matter stems from a joint law enforcement investigation conducted in 2010 by the FBI New Haven Safe Streets Task Force, the DEA New Haven Task Force, the New Haven Police Department and the Hamden Police Department. Through the use of court-authorized wiretaps, investigating officers identified and dismantled a large drug trafficking organization that was headed by Joseph Jackson, also known as “Mighty” and “M.I.,” and centered in the Newhallville section of New Haven and Hamden. The investigation revealed that Jackson used “young boys,” some of whom were still in high school, to distribute large quantities of crack cocaine.
From June through October 2010, FIELDS was regularly intercepted over the wiretap arranging to meet one of Jackson’s associates at locations in Fairhaven and Newhallville to purchase “8-ball” quantities (3.5 grams) of crack cocaine. FIELDS then divided the crack into $10 and $20 baggies, which he sold to his own customers.
At trial, FIELDS maintained that he bought crack cocaine from the members of the conspiracy, but was not a conspirator himself. The jury rejected this defense, and convicted FIELDS on the conspiracy count, which was the only charge against him.
Forty-seven individuals have been charged in federal court with various narcotics offenses as a result of this investigation. All have been convicted.
On June 18, 2013, Jackson was sentenced to 300 months of imprisonment.
This matter was investigated by the FBI New Haven Safe Streets Task Force (composed of members of the New Haven, Milford and Hamden Police Departments and the Connecticut Department of Correction), the Drug Enforcement Administration’s New Haven Task Force (composed of members of the New Haven, West Haven, Meriden, Ansonia, Hamden and Branford Police Departments), along with substantial participation by members of the New Haven and Hamden Police Departments. The United States Marshals Service also has assisted the investigation.
The investigation was funded in significant part by the United States Attorney's Office Organized Crime Drug Enforcement Task Force and supported by the Office’s Project Safe Neighborhoods and Anti-Gang programs.
This matter is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Minneapolis Man Pleads Guilty to Being an Armed Career Criminal in Possession of A FirearmRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a 47-year-old Minneapolis felon pleaded guilty to possessing a .357-caliber revolver. On June 20, 2013, Oscar Lee pleaded guilty to one count of being a felon in possession of a firearm. Lee, who was indicted on November 20, 2012, entered his plea before United States District Court Judge Paul A. Magnuson.
In his plea agreement, Lee admitted that on May 14, 2012, he possessed the revolver, which had been reportedly stolen. Minneapolis Police attempted to stop Lee’s vehicle in south Minneapolis after observing a missing headlight. Rather than stopping, Lee ran through a stop sign and led police on a car chase for approximately ten blocks. He threw the handgun from the vehicle as he turned down an alley. Police later found the firearm.
Because he is a felon, Lee is prohibited under federal law from possessing a firearm at any time. His prior Hennepin County convictions include burglary in the third degree (1987 and 1992) and assault in the second degree (1988). In 1997, Lee was convicted in Polk County, Iowa, for third-degree burglary, forgery, and being a felon in possession of a firearm.
Since those offenses constituted crimes of violence, Lee is subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in prison for anyone convicted in federal court of being a felon in possession of a firearm if that person also has at least three prior state or federal convictions for crimes of violence or serious drug crimes. Judge Magnuson will determine Lee’s sentence at a future hearing, yet to be scheduled.
This case resulted from an investigation conducted by the Minneapolis Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorneys Julie E. Allyn and Amber M. Brennan.
The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than a dozen serious habitual criminals through Project Exile Minneapolis.Matchmaker Gets Federal Prison for Marriage FraudRead the Press Release
McALLEN, Texas - An Edinburg woman has been sentenced to two years imprisonment for conspiracy to commit marriage fraud, United States Attorney Kenneth Magidson announced today.
At a hearing yesterday, Chief United States District Judge Ricardo H. Hinojosa handed Sandy Botello Ramirez, 77, a sentence of 24 months in federal prison and further ordered she serve two years of supervised release following completion of that prison term.
When sentencing Botello, the court noted she was a matchmaker of marriages that did not exist and that through those sham marriages, Botello committed a huge fraud on the United States and the people of this country.
From 2002 to the time of her arrest, Botello arranged more than 30 sham marriages between foreign nationals and United States Citizens for profit. Foreign nationals hired Botello help them obtain residency status in the United States by arranging a sham marriage with a U.S. citizen whom Botello paid to participate.
Botello relied on recruiters to help her find U.S. citizens to enter into the marriages.
One recruiter, Celia Carranza-Palacios, was convicted and ordered to serve three years of supervised release.
Botello committed marriage fraud by arranging marriages where the couple did not intend to establish a life together when they got married but were only seeking immigration benefits. Botello completed the immigration paperwork and would instruct the pair how to present themselves as a married couple. Botello told them to get a common law marriage certificate and take pictures together and instructed the couples how to answer questions at their immigration interview.
By filing a petition with United States Citizenship and Immigration Services (USCIS), U.S. citizens may seek the residency for their alien relative. These petitions are legal and permit a U.S. citizen to bring his or her close relative, such as a spouse, to the United States. Marriage fraud occurs when this petition for residency is filed, but the bride and groom did not intend to establish a life together at the time they were married.
Botello has been on bond during the pendency of the case and will be permitted to voluntarily surrender to a Bureau of Prisons facility to be determined in the near future.
This case was investigated by agents with USCIS and Homeland Security Investigations. Assistant U.S. Attorneys Kristen Rees and Kimberly Leo prosecuted the case.
Maryland Man Pleads Guilty to Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with A Minor and Possession of Child PornographyRead the Press Release
WASHINGTON – Frederick Singletary, 42, of Parkville, Md., pled guilty today to federal charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Singletary entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable Beryl A. Howell is to sentence him on Sept. 20, 2013. Singletary faces a statutory maximum sentence of 30 years of imprisonment for traveling interstate to engage in illicit sexual conduct and a maximum of 10 years of imprisonment for possession of child pornography, as well as a fine of $250,000 on each count.
According to the government's evidence, on Feb. 12, 2013, Singletary contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Over the next few days, Singletary engaged in online e-mail, instant message, text message, and telephone conversations with the undercover officer, whom he believed was the father of an under-aged girl. During this period of time, Singletary arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child.
During the course of their communications, Singletary also sent the undercover officer 10 images of child pornography. On Feb. 14, 2013, Singletary traveled from Maryland to a pre-arranged meeting place in Washington, D.C. When he arrived, he was arrested.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director Parlave and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
13-221Madison Illinois Man Sentenced for Conspiracy, Wire Fraud and Aggravated Identity Theft in Multi-State Auto Theft SchemeRead the Press Release
A Madison, Illinois, man convicted of Conspiracy to Possess and Pass Counterfeit Securities, Wire Fraud and Aggravated Identity Theft, was sentenced on June 21, 2013, to 70 months on Counts 1 and 2 with a consecutive 24 months on Count 3 for a total of 94 months, and ordered to pay restitution in the amount of $87,889.96, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Gordon D. Caldwell, 46, pled guilty to the charges on March 15, 2013. During his plea, Caldwell admitted that from April of 2011 to August of 2012 he had conspired with others to use counterfeit cashier’s checks of financial institutions to defraud individuals in both Illinois and Missouri who had listed their vehicles for sale in various media sources. Caldwell admitted that he would go to the seller’s home or other location where a vehicle was held for sale, and while using false identification, he would give a counterfeit cashier’s check to the seller. Caldwell also admitted that on two occasions, he used the fraudulently obtained vehicle titles to take out vehicle loans.
The investigation was conducted by the Metro East Auto Theft Task Force with the assistance of the Madison County Sheriff’s Office; the Granite City, Madison, Glen Carbon, Maryville, Effingham, Decatur and South Roxana Police Departments in Illinois; the Jefferson, and Boone County Sheriff’s Offices; the St. Charles County Sheriff’s Department and the St. Peters, St. Louis County and Arnold Police Departments in Missouri. Assistance was also given by the prosecutors’ offices in Madison, Macon, Effingham and Morgan Counties in Illinois and Jefferson, St. Charles, St. Louis, and Boone Counties in Missouri. The case is being prosecuted by Assistant United States Attorney Ranley R. Killian.
Leland Neil Lapier, Jr. Found Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that on June 20, 2013, in Great Falls, after a federal district court trial before Chief U.S. District Judge Dana L. Christensen, LELAND NEIL LAPIER, JR., a 28-year-old resident of Great Falls, was found guilty of conspiracy to possess with the intent to distribute methamphetamine and possession with the intent to distribute methamphetamine. Sentencing is set for September 24, 2013.
At trial, the following evidence and testimony was presented to the jury.
Assistant U.S. Attorney Jessica A. Betley prosecuted the case for the United States.
In January 2012, Great Falls law enforcement became alerted to a large scale methamphetamine conspiracy. Subsequently, Louis Kanyid, Joelle Jones, Ann Wetzel, Joe Wetzel, Mark Kness, Linda Reynolds, Robert Boucher, Ron Leeson, Tammie Lapie, and Mark Abresch have pleaded guilty to various methamphetamine crimes. Through independent investigation, as well as through debriefs of these defendants, law enforcement learned that LAPIER was also an active participant in this conspiracy and responsible for the distribution of methamphetamine throughout Great Falls.
From September 2011, through September 2012, Louis Kanyid brought pounds of actual (pure) methamphetamine from Kennewick, Washington, to Great Falls. Kanyid spoke with law enforcement and said one of his original contacts in Great Falls was LAPIER's sister. Kanyid met her through Craig's List, and she began to purchase and sell methamphetamine provided by Kanyid. Eventually, though, LAPIER took over her position. Kanyid found the methamphetamine market in Great Falls to be extremely profitable, and from April 2012, and forward, he never brought less than a pound of methamphetamine with him on each trip to Great Falls.
Kanyid regularly provided LAPIER with half of the methamphetamine that he brought to town. LAPIER lived with his girlfriend in Great Falls and he conducted his methamphetamine business from the garage. Customers met LAPIER and Kanyid in the garage so that neighbors would not witness the drug transactions. Kanyid paid his methamphetamine supplier $1,200 per ounce and never sold an ounce of methamphetamine in Great Falls for less than $2,000. Kanyid claimed an ounce of methamphetamine could actually be bought for $3,200 in Great Falls. At one point, Kanyid and LAPIER engaged in a contest to see how much methamphetamine each could sell in one day in Great Falls. According to Kanyid, himself and LAPIER made $6,000 each in one day.
In August 2012, Kanyid sold five pounds of methamphetamine in Great Falls, including two pounds directly to LAPIER. Law enforcement eventually seized approximately 38 grams of pure methamphetamine from Kanyid's hotel room.
Law enforcement also arrested Kanyid's girlfriend, Joelle Jones, for her involvement in this methamphetamine conspiracy. Jones later told agents that Kanyid spent a great amount of time with LAPIER. In fact, when police arrested Kanyid, LAPIER immediately called Jones to warn her of the arrest. Jones later took a taxi to LAPIER's house that night and LAPIER's girlfriend provided Jones with a car to drive back to Washington. Jones returned to Great Falls again a week later to meet with LAPIER. After Kanyid's arrest, LAPIER encouraged Jones to bring methamphetamine to him in Great Falls.
After a grand jury indicted Kanyid, Jones, Ann Wetzel, Joe Wetzel, Mark Kness, and Linda Reynolds, LAPIER turned elsewhere to buy methamphetamine. Following the initial indictment and arrests, LAPIER then turned to Robert Boucher in order to purchase methamphetamine.
Boucher was from Spokane, Washington, and began selling methamphetamine in December 2009. He originally made contact with Great Falls methamphetamine dealers through a female Great Falls resident, who traveled to Spokane to purchase methamphetamine. Mark Abresch also accompanied this woman on trips to Spokane. After approximately six months, Boucher began to travel to Great Falls to sell methamphetamine. He normally brought six to eight ounces of methamphetamine on each trip. Boucher stayed at Tammy Lapie's home, and became associated with selling methamphetamine with Lapie, Abresch, and Ron Leeson. Boucher also told agents that he met LAPIER in Great Falls. Boucher regularly sold LAPIER two ounces of methamphetamine at a time, and did that approximately three or four times. LAPIER paid $1,700 per ounce, and last bought methamphetamine from Boucher about one week before Boucher's arrest in December 2012.
Tammy Lapie told agents that LAPIER began to come to her home in October 2012. LAPIER began to look for larger amounts of methamphetamine and turned to Boucher for methamphetamine. Lapie believed LAPIER purchased one ounce of methamphetamine from Boucher on one occasion, and between one to four ounces of methamphetamine on another occasion. Law enforcement seized approximately 44 grams of actual methamphetamine from Lapie's home. Chris Leeson also told agents that people knew that Kanyid was LAPIER's original source of methamphetamine. Leeson once traded a car speaker to LAPIER for an eight ball of methamphetamine.
Mark Abresch originally worked as a confidential informant with the Great Falls Police Department before being dropped as an informant due to continued drug dealing. During the summer of 2012, Abresch bought approximately 60 grams of actual methamphetamine from Boucher through controlled drug buys. Abresch alerted agents in July 2012, that LAPIER always had methamphetamine in Great Falls. Abresch did not purchase methamphetamine from LAPIER because he charged $2,000 per ounce.
In September 2012, Abresch told agents that he had hung out at LAPIER's house on numerous occasions and saw LAPIER with large amounts of methamphetamine. In the spring of 2012, Abresch saw LAPIER with four to six ounces of methamphetamine. Abresch then saw numerous customers purchase the methamphetamine. During mid-summer 2012, Abresch observed Kanyid drop off a half pound of methamphetamine to LAPIER in LAPIER's garage. LAPIER again started distributing the methamphetamine from the garage. Lastly, in August or early September 2012, Abresch observed LAPIER sell four ounces of methamphetamine from his garage.
LAPIER faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $10,000,000 fine, and 5 years supervised release.
The investigation was conducted by the High Intensity Drug Trafficking Area (HIDTA) Task Force - Russell Country Drug Task Force.
Law Enforcement Targets Social Security FraudRead the Press Release
A Seattle woman who illegally collected her dead father’s Social Security benefits for more than 19 years after his death, was sentenced today in U.S. District Court in Seattle to 18 months in prison and three years of supervised release for theft of government funds, announced U.S. Attorney Jenny A. Durkan. PATTY BUCHANAN, 57, was prosecuted as part of an initiative with the Social Security Administration Office of Inspector General to combat benefit fraud. BUCHANAN forged a power of attorney, submitted false documentation to the Social Security Administration and even had someone impersonate her father on the telephone to continue collecting his benefits after his death in 1993. At sentencing Chief U.S. District Judge Marsha J. Pechman ordered her to pay $239,083 in restitution.
“Fraud against Social Security harms the poor, the disabled, and those most in need, including the elderly,” said U.S. Attorney Jenny A. Durkan. “These prosecutions are aimed at preserving the integrity of the Social Security safety net so that it remains available for vulnerable people who need these benefits to survive.”
BUCHANAN is one of the largest Social Security benefit fraud cases prosecuted as part of the initiative in the Western District of Washington. BUCHANAN’s father died in May 1993, but she continued to receive and cash his benefit checks using a check cashing business. She told the outlet her father was infirm and homebound and that she had power of attorney. Every month for 19 years she cashed the checks – in all, 235 checks for a total of $239,083. When one of the tellers at the check cashing business became suspicious, BUCHANAN forged a fraudulent power of attorney document. When staffers at the outlet called to try to speak with BUCHANAN’s father, BUCHANAN had a male friend pretend to be her father. Ultimately, an anonymous tip to Social Security ended the fraud in December 2012. In addition, between March 2003 and November 2012, BUCHANAN also applied for and fraudulently collected $11,271 in Washington State Department of Social and Health Services benefits to which she was not entitled. BUCHANAN has one prior conviction for fraud against the state welfare system.
Five other defendants have been charged this year with theft of government funds for fraudulently collecting Social Security benefits for years after their parents’ death. All five have entered guilty pleas and await sentencing. The following are the longest running of these frauds.
CLAUDIA RUTH GREENAMYER, 72, of University Place, fraudulently collected $219,960 following the death of her mother in 1996 and her father in 2000. The payments were made to bank accounts GREENAMYER held jointly with her parents. GREENAMYER continued to use the money without telling Social Security her parents were deceased. She forged signatures to continue the theft, and when confronted by agents in February 2013, she claimed to have seen her parents one month earlier. GREENAMYER pleaded guilty to theft of government funds on May 15, 2013.
DENNIS JAY GORIN, 76, of Eatonville, fraudulently collected about $100,000 in Social Security benefits belonging to his mother following her death in around 2003. GORIN did not notify federal or state authorities of his mother’s death and personally disposed of his mother’s body on property in a rural area. Between 2003 and 2013, GORIN forged his mother’s signature to embezzle an estimated $100,000 worth of Social Security benefits. GORIN pleaded guilty on May 21, 2013.
DAVID MICHAEL COSTA, 77, of Sammamish, fraudulently collected $297,948 of his mother’s Social Security benefits following her death in 1989. While COSTA originally thought the payments coming to the joint bank account were from an annuity, in 1992 he learned they were Social Security payments. Rather than alert authorities and pay back the $40,000 that had wrongly been paid, COSTA continued to collect the benefits for more than 15 more years. COSTA forged his mother’s name on documents and substituted his address for hers on all records, updating it three different times over the years. COSTA pleaded guilty on June 3, 2013.
These cases were investigated by the Social Security Administration Office of Inspector General (SSA-OIG) and are being prosecuted by Special Assistant United States Attorney Seth Wilkinson as part of a partnership venture between the Social Security Administration Office of General Counsel and the United States Attorney’s Office.
Kentucky Pain Clinics, Pharmacy and Owner Convicted by Jury on All CountsRead the Press Release
LEXINGTON, KY - The owner of pill mills in Georgetown, KY., and Dry Ridge, KY., which illegally dispensed prescription drugs to thousands of patients, was found guilty on all 21 counts of drug trafficking, money laundering, opening and maintaining a drug involved premise and conspiracy charges.
On Thursday, the jury returned guilty verdicts against 45 year-old Ernest William Singleton and his corporate fronts— Double D Holdings, LLC and S and R Medical Enterprises, LLC. These entities, controlled by Singleton, in turn owned Central Kentucky Bariatric and Pain Management; Central Kentucky Family Pharmacy of Georgetown and the Grant County Wellness Center in Dry Ridge, KY. The two clinics were convicted of the same charges as Singleton. Double D Holdings was convicted on drug trafficking and money laundering offenses. The pharmacy was convicted of money laundering charges. The jury returned the verdict after approximately three hours of deliberation, following three weeks of trial.
According to evidence presented at trial, starting in October of 2010 and continuing until February 2013, doctors at the clinics prescribed Diazepam and Ultram outside the scope of professional practice, not for a legitimate medical purpose, and under Singleton’s direction. Singleton then used his businesses to launder the proceeds gained from the drug trafficking.
Additionally, the jury found that Singleton used the drug proceeds to purchase a house in Willisburg, KY., a boat, farmland, and farm equipment, among other items. Singleton will have to forfeit bank accounts consisting of $427,834.34, more than 20 firearms, over 40 pieces of farm equipment, vehicles, and livestock that either facilitated the crimes or were purchased with proceeds obtained from his criminal offenses.
The evidence at trial established that Singleton oversaw the daily operations of the clinics, influenced doctors to overprescribe drugs to patients, and pressured them to see as many patients as possible. Witnesses testified that, at Singleton’s direction, one of the doctors saw more than 90 patients in a day and another doctor visited with some patients for as little as three minutes, before prescribing medication.
Testimony also revealed that when some doctors complained to Singleton, about the volume of patients, he instructed them not to reduce their patient load and told them “if we don’t give them (patients) what they want, they won’t come back.” Doctors testified that they could not provide adequate medical care under Singleton’s guidelines. Two of the doctors employed by Singleton, Lea Marlow and Gregory White, pleaded guilty earlier this month to conspiring to distribute controlled substances outside the scope of professional practice and without a legitimate medical purpose.
Other evidence established that the pain clinics operated on a cash-only basis and did not accept insurance. New patients paid approximately $250 on the first visit and $300 on subsequent visits. Investigators estimate that approximately 5,000 patients visited the clinics during the course of the conspiracy.
“Mr. Singleton is a drug dealer who used his business as a front for his criminal scheme,” said Kerry Harvey, U.S. Attorney for the Eastern District of Kentucky. “We will continue to pursue those who operate pill mills that bring so much pain to our communities. This successful prosecution exemplifies the sort of interagency collaboration that is necessary to effectively combat the scourge of illegal drug trafficking in our Commonwealth. We congratulate our law enforcement partners in this case and appreciate the great work of our trial team.”
“This verdict sends a clear message that drug and money laundering violations are serious crimes against the American public. IRS Criminal Investigation, along with our law enforcement partners, plays a very important role in the successful investigation and prosecution of these types of financial crimes,” said Christopher A. Henry, Special Agent in Charge, IRS Criminal Investigation, Nashville Field Office.
“The defendant’s greed came at a substantial cost to many families in the Commonwealth,” said Attorney General Jack Conway. “This case is a perfect example of why entrepreneurs should not be in control of pain management clinics, I appreciate the hard work of my Drug Investigative Branch and prosecutors who worked in coordination with our state and federal law enforcement partners to bring the defendant to justice and obtain this guilty verdict."
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Robert L. Corso, Special Agent in Charge, Drug Enforcement Administration; Christopher A. Henry, Special Agent in Charge of IRS, Criminal Investigation Division; Jack Conway, Kentucky Attorney General; and Rodney Brewer, Commissioner of Kentucky State Police, jointly made the announcement.
The investigation was conducted by the DEA, IRS Criminal Investigation Division, the Kentucky Attorney General’s Office and Kentucky State Police. Assistant U.S. Attorneys Ron Walker and Patrick Molloy with the U.S. Attorney’s Office, and Special Assistant U.S. Attorney Shawna Kincer, who is the Executive Director of Special Prosecutions with the Kentucky Attorney General’s Office, prosecuted the case.
Singleton faces up to 20 years in prison for both the money laundering and drug trafficking conspiracies. The businesses face a maximum of fine of $250,000. However, any sentences following conviction would be imposed after the Court reviews the U.S. Sentencing Guidelines and the federal statutes.
Indictments Returned in Hammond Federal CourtRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana- The United States Attorney’s Office announced that the following Indictments were returned on June 21, 2013:
Shamekka Thomas, 25, of Gary, Indiana, was charged with making a false material statement to a licensed firearms dealer with the intent of deceiving as to legality of purchase, knowingly making a false statement to a licensed firearms dealer with respect to information required to be kept on record and aiding and abetting.This charge was filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Tom McGrath.
Timothy Thomas, 29, of Gary, Indiana, was charged with making a false material statement to a licensed firearms dealer with the intent of deceiving as to legality of purchase, knowingly making a false statement to a licensed firearms dealer with respect to information required to be kept on record and aiding and abetting.This charge was filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case has been assigned to and will be prosecuted by Assistant United States Attorney Tom McGrath.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Illegal Alien Sentenced to 46 Months for Transporting Women for Interstate Prostitution RingRead the Press Release
ALEXANDRIA, Va. – Angel Campos Tellez, 27, an illegal alien from Mexico, who lived in Greenbelt, Md., was sentenced today to 46 months in prison, followed by three years of supervised release, for conspiring to transport more than 100 women to engage in commercial sex acts in Virginia, Maryland, and Delaware.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Kenneth T. Cuccinelli, II, Attorney General of Virginia; and John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C., made the announcement after sentencing by United States District Judge Claude M. Hilton.
“There are many moving parts in the vile sex trafficking industry – the recruiters, the transporters, and the so called ‘pimps.’ Here, Tellez, a leader, drove victims up and down the eastern seaboard to be prostituted in various localities. This reprehensible conduct will not be tolerated,” said U.S. Attorney Neil H. MacBride.
“For three years, Campos Tellez led a network that exploited women to a dangerous life of prostitution, violence, and gangs,” said Cuccinelli. “Whatever their role may be in a sex trafficking ring, we want these criminals to know: we will find you, we will prosecute you, and we will lock you up for your crimes. Virginia will not turn a blind eye to this abusive and disgusting criminal enterprise.”“Protecting our communities from those who engage in human trafficking is a top priority for ICE Homeland Security Investigations," said John P. Torres, Special Agent in Charge of HSI Washington. "HSI special agents will continue to work with our law enforcement partners to identify victims of human trafficking and to pursue the criminals who prey on them."
Campos Tellez pleaded guilty on March 27, 2013, to conspiracy to transport women to engage in prostitution. According to court records, from 2009 through July 2012, Campos Tellez was a leader of a network that transported women to engage in commercial sex acts in Manassas, Woodbridge, Virginia Beach, Norfolk, Newport News, Va., Baltimore, and Delaware. As a leader, Campos Tellez was responsible for collecting prostitution proceeds, advertising the prostitution scheme, and obtaining lodging for the victims he prostituted. Campos Tellez instructed the women he prostituted to charge $30 for 15 minutes of vaginal sex, and he personally received at least $15,000 in proceeds from commercial sex acts.
This case was investigated by the Transnational Gang Unit of HSI, which is a member of the Northern Virginia Human Trafficking Task Force. Virginia Assistant Attorney General and Special Assistant United States Attorney Marc J. Birnbaum and Assistant United States Attorney Michael J. Frank are prosecuting the case on behalf of the United States.
Founded in 2004, the Northern Virginia Human Trafficking Task Force is a collaboration of federal, state, and local law enforcement agencies – along with nongovernmental organizations – dedicated to combating human trafficking and related crimes.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Hayward Tax Preparer Sentenced to Two Years in Jail for Tax FraudRead the Press Release
Oakland, Calif. – Naushad Buksh was sentenced yesterday to 24 months in prison for filing a false tax return and assisting in the preparation of a false tax returns, announced United States Attorney Melinda Haag and Internal Revenue Service Criminal Investigation (IRS-CI) Special Agent in Charge José M. Martínez.
Buksh pleaded guilty on January 24, 2013. According to his plea agreement, Buksh has prepared tax returns for approximately 20 years. During 2007, 2008, 2009, and 2010, he operated a tax return preparation business in Hayward, California, and was responsible for all income and expenses of the business. His taxable income earned from this business was $116,387, $134,843, $178,167, and $210,683, respectively. Buksh intentionally omitted this income from his tax returns, which resulted in a tax loss of $160,528.
Buksh admitted in his plea that, in addition to filing false returns for himself, he also prepared tax returns on behalf of his clients that included false deductions and credits for the purpose of creating fraudulent tax refunds. Buksh admitted that knew the deductions and credits were false because he fabricated them. Specifically, some of the false deductions and credits included home mortgage interest and points, unreimbursed employee expenses, inflated education credits, student loan interest and/or tuition fee deductions, false personal property tax deductions, and false or inflated tax preparation fees. By adding these false claims to his clients’ tax returns he caused a tax loss to the government totaling $109,077.
Buksh is scheduled to self-surrender to the custody of the U.S. Marshalls on August 20, 2013.
Special Assistant U.S. Attorney Charles Parker and Assistant U.S. Attorney Thomas Moore are prosecuting the case. The prosecution is the result of an investigation by IRS-CI.
(Buksh Indictment )
Gayle Patrick Skunkcap, Jr., Jessie Jay St. Goddard, and Woodrow Jay Wells Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 20, 2013, before U.S. District Judge Dana L. Christensen, GAYLE PATRICK SKUNKCAP, JR., age 42, JESSIE JAY ST. GODDARD, age 50, and WOODROW JAY WELLS, age 45, residents of Browning, Montana, were each sentenced to a term of:
Probation: 3 years
Special Assessment: $200
Restitution: $56,625
They were sentenced in connection with their guilty pleas to violating the Lacey Act (illegal sale of tribal wildlife) and Theft from a Tribal Government Receiving Federal Funding.
In an Offer of Proof filed by Assistant U.S. Attorneys Carl E. Rostad and Ryan G. Weldon, the government stated it would have proved the following at trial:
All wildlife on the Blackfeet Indian Reservation are owned by the Blackfeet Indian Tribe. In managing such wildlife, hunting is allowed. Hunting by non-members on the Blackfeet Indian Reservation is a highly regulated activity. The 2010 and 2011 Blackfeet Regulations set forth the number of tags that may be given to non-members and the price of payment required for each tag. These tags are required, are limited in number, and are highly lucrative. There are only between five and ten hunting licenses for each big-game species available to non-tribal members each year, with each license costing between $1,500 and $12,000, depending on the animal.
SKUNKCAP, Jr., was the Director of the Blackfeet Fish and Wildlife Department, and ST. GODDARD and WELLS were Tribal Councilmen on the Blackfeet Tribal Business Council. In 2010 and 2011, the Blackfeet Fish and Wildlife Department received federal funding in excess of $220,000, each year.
Between 2010 and 2011, SKUNKCAP, ST. GODDARD, and WELLS held four big-game hunts for country musicians participating in an outdoors television show on the Blackfeet Indian Reservation without obtaining the limited and expensive hunting licenses for non-tribal members to shoot elk, moose, deer, and a black bear. They also used tribal funds and personnel to outfit and guide the musicians, television show hosts, and a fly fishing expert.
Michael W. Cotter, United States Attorney for Montana said, "These defendants were public officials of the Blackfeet Tribe and leaders in the community who used their positions to steal property from the Blackfeet Tribal Nation. Public corruption is a crime that will be prosecuted by the Montana United States Attorney's Office whenever it occurs and wherever it is discovered. This prosecution is an example of great investigative collaboration between the U.S. Fish and Wildlife Service, The Federal Bureau of Investigation, and the Blackfeet Internal Affairs Office."
Fridley Man Pleads Guilty to Robbing Two Twin Cities’ Shoe StoresRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 42-year-old Fridley man pleaded guilty to robbing two Twin Cities’ shoe stores in early January. Peter Christopher Nunn specifically pleaded guilty to two counts of interference with commerce by robbery, pursuant to the Hobbs Act. Nunn, who was indicted on February 5, 2013, entered his plea before United States District Court Judge Patrick J. Schiltz.
In his plea agreement, Nunn admitted that on January 5, 2013, he stole approximately $300 from the Payless ShoeSource store, located at 8510 Springbrook Drive in Coon Rapids, while threatening employees with a weapon that was later determined to be a BB gun. He also admitted ordering two people into a bathroom, barricading the bathroom door with a chair, and then leaving the store.
In addition, Nunn admitted that on January 7, 2013, he stole approximately $700 from the Famous Footwear store located at 1593 E. 17th Avenue in Shakopee in the same manner. Following that robbery, police arrested Nunn after a high-speed chase.As stated, Nunn was charged in federal court under the Hobbs Act, which was passed by Congress in1946. The Act allows federal prosecutors to prosecute violent habitual criminals who commit armed robberies in places of business that involve interstate commerce.
For his crimes, Nunn faces a potential maximum penalty of 20 years in prison on each count. Judge Schiltz will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the police departments in Coon Rapids and Shakopee. It is being prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.Fort Worth Man Sentenced to 97 Months in Federal Prison for Possessing Child PornographyRead the Press Release
FORT WORTH, Texas — Richard D. Anderson, 59, of Fort Worth, Texas, was sentenced this morning by U.S. District Judge John McBryde to 97 months in federal prison, after pleading guilty to an indictment charging one count of possession of child pornography. Anderson has been in custody since he entered that guilty plea in March 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in September 2012, officers with the Fort Worth Police Department’s Internet Crimes Against Children (ICAC) Unit executed a search warrant at Anderson’s home and seized computers and removable storage media. A forensic exam revealed images and videos of child pornography. Anderson admitted that he had downloaded images of child pornography from the Internet using newsgroups and that he had moved images from his computer to his flash drive.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the Fort Worth Police Department’s ICAC and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Aisha Saleem was in charge of the prosecution.
Fort Dodge Man Charged with Federal Child Pornography OffensesRead the Press Release
Brian Skou, age 26, of Fort Dodge, Iowa, has been indicted on federal child pornography charges. The charges are contained in an Indictment unsealed June 19, 2013, in United States District Court in Sioux City.
The Indictment alleges that, between 2007 and 2012, Skou received and possessed child pornography.
If convicted on all charges, Skou faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, $750,000 in fines, a $300 special assessment, and at least 5 years and up to life on supervised release following any imprisonment.
Skou appeared on June 19, 2013, in federal court in Sioux City and was released on bond. Skou’s next appearance for trial is set for August 5, 2013.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Webster County Sheriff’s Office and the Fort Dodge Police Department.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-3019.
Former Workers at Los Alamos National Laboratory<br /> Plead Guilty to Atomic Energy Act ViolationsRead the Press Release
The Justice Department today announced that a scientist and his wife, who both previously worked as contractors at the Los Alamos National Laboratory (LANL) in New Mexico, have pleaded guilty to charges under the Atomic Energy Act and other charges relating to their communication of classified nuclear weapons data to a person they believed to be a Venezuelan government official.
The guilty pleas, which were entered today by Pedro Leonardo Mascheroni, 77, a naturalized U.S. citizen from Argentina, and Marjorie Roxby Mascheroni, 70, a U.S. citizen, in the U.S. District Court for the District of New Mexico, were announced by John Carlin, Acting Assistant Attorney General for National Security; Kenneth J. Gonzales, U.S. Attorney for the District of New Mexico and Carol K.O. Lee, Special Agent in Charge of the FBI’s Albuquerque Division.
According to court filings, Mascheroni, a Ph.D. physicist, worked as a scientist at LANL from 1979 to 1988 and held a security clearance that allowed him access to certain classified information, including “Restricted Data.” Roxby Mascheroni worked at LANL between 1981 and 2010, where her duties included technical writing and editing. She also held a security clearance at LANL that allowed her access to certain classified information, including “Restricted Data.” As defined under the Atomic Energy Act, “Restricted Data” is classified information concerning the design, manufacture or use of atomic weapons; the production of special nuclear material; or the use of special nuclear material in the production of energy.
Mascheroni and Roxby Mascheroni were indicted in Sept. 2010, and charged with conspiracy to communicate and communicating Restricted Data to an individual with the intent to secure to an advantage to a foreign nation. The indictment also charged the couple with conspiracy to convey and conveying classified Restricted Data. The indictment also charged Mascheroni with concealing and retaining U.S. records with the intent to convert them to his own use and gain, and both defendants with making false statements.
Today, Mascheroni pleaded guilty to Counts 7 and 8 of the indictment, charging him with conversion of government property, and Counts 10 through 15, charging him with making false statements. Mascheroni also pleaded guilty to an information charging him with two counts of communication of Restricted Data and one count of retention of national defense information. Mascheroni admitted that in Nov. 2008 and July 2009, he unlawfully communicated Restricted Data to another individual with reason to believe that the data would be utilized to secure an advantage to Venezuela. He also admitted unlawfully converting Department of Energy information to his own use and selling the information in Nov. 2008 and July 2009, and failing to deliver classified information relating to the United States’ national defense to appropriate authorities and instead unlawfully retaining the information in his home. Finally, Mascheroni admitted making materially false statements to the FBI when he was interviewed in Oct. 2009.
Roxby Mascheroni pleaded guilty to Count 6 of the indictment, charging her with conspiracy, and Counts 16 through 22, charging her with making false statements. She also pleaded guilty to an information charging her with conspiracy to communicate Restricted Data. In entering her guilty plea, Roxby Mascheroni admitted that between Oct. 2007 and Oct. 2009, she conspired with Mascheroni to convey Restricted Data belonging to the United States to another person with reason to believe that the information would be used to secure an advantage to Venezuela. She also admitted making materially false statements to the FBI when she was interviewed in Oct. 2009.
Under the terms of the plea agreements, which are subject to court approval, Mascheroni will be sentenced to a prison term within the range of 24 to 66 months followed by ten years of supervised release, and Roxby Mascheroni will be sentenced to a prison term of 12 to 24 months followed by nine years of supervised release. The couple’s sentencing hearings have yet to be scheduled.
The indictment in this case did not allege that the government of Venezuela or anyone acting on its behalf sought or was passed any classified information, nor did it charge any Venezuelan government officials or anyone acting on their behalf with wrongdoing. The indictment also did not allege any wrongdoing by other individuals working at LANL.This investigation was conducted by the FBI’s Albuquerque Division with assistance from the Department of Energy and LANL. The prosecution is being handled by Assistant U.S. Attorneys Fred J. Federici, Dean Tuckman and Holland S. Kastrin of the U.S. Attorney’s Office for the District of New Mexico, and Trial Attorneys Kathleen Kedian and David Recker of the Counterespionage Section of the Justice Department’s National Security Division.
Former State Representative Hudson Hallum and Father Sentenced for Conspiracy to Commit Election FraudRead the Press Release
Little Rock - Patrick C. Harris, Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, and Federal Bureau of Investigation Special Agent in Charge Randall C. Coleman announced the sentencing of former State Representative Hudson Hallum, age 31, and his father, Kent Hallum, age 54, on a charge of conspiracy to commit election fraud. The Hallums were sentenced by United States District Judge Kristine G. Baker. Hudson Hallum was sentenced to three years probation with nine months of home confinement on electronic monitoring, fined $20,000 and ordered to perform 100 hours of community service. Kent Hallum was sentenced to three years probation with nine months home confinement on electronic monitoring and was ordered to pay a fine of $10,000. Kent was also sentenced to perform100 hours of community service. During the period of home confinement for both Hudson and Kent, employment is excepted as well as other activities approved in advance by probation.
"The activities of Mr. Hallum and his associates are very disappointing. It erodes the very basis for our democracy," said Harris. "The United States Attorney's Office considers protecting the integrity of the electoral process a priority for the people of Arkansas. Investigating and prosecuting voter fraud schemes such as this case, are essential to restoring confidence in elected public officials."
"Today's sentencings of a father and son for their roles in a voter fraud scheme demonstrate just how pervasive public corruption can be," stated FBI Special Agent in Charge Randall C. Coleman. "My office will continue to aggressively investigate those public officials who choose to violate the trust of Arkansans by engaging in these corrupt schemes."
Both Hudson and Kent Hallum waived indictment and entered guilty pleas to a conspiracy charge in an Information on September 5, 2012. In doing so, each acknowledged his participation in a conspiracy to bribe voters to influence absentee votes in the Arkansas District 54 primary, its runoff election, and the general election, all of which were held between February and July 2011. Hudson Hallum was a candidate in that election and won the District 54 House seat.
Former West Memphis Police Officer Sam Malone, age 32, and former West Memphis City Councilman Phillip Wayne Carter, age 44, who also pled guilty to the conspiracy charge, were sentenced in hearings held May 21 and May 22, 2013. Malone was sentenced to three years probation, the first 7.2 months of which will be spent on home confinement with electronic monitoring, plus 100 hours of community service. Malone will be restricted to his home while on confinement except for the hours of his employment. Carter was sentenced to three years probation, the first five months of which will be spent on home confinement with electronic monitoring, a $2,500 fine plus 100 hours of community service. Carter will also be restricted to his home while on confinement except for the hours of his employment.
According to the felony Information to which the defendants pled guilty, Hudson Hallum, was elected to House Seat 54 on July 12, 2011. Kent Hallum, age 53, managed the finances and certain logistics of his son's campaign for the District 54 seat, including the campaign's effort to solicit and secure votes cast by absentee ballot. Hudson Hallum hired Carter who was both a West Memphis City Councilman and a Crittenden County Juvenile Probation Officer, to implement the Hallum campaign's absentee ballot strategy. Malone who was a West Memphis police officer, assisted Carter in implementing the Hallum campaign's absentee ballot strategy.
Hudson Hallum, along with others, declared his candidacy as a Democrat in the special primary election for House Seat 54, which took place on April 20, 2011. Because neither Hudson Hallum nor any other Democratic candidate obtained the required majority of votes in the special primary election, a special primary runoff election took place on May 10, 2011. Hudson Hallum was certified as the winner in the special primary runoff by 8 votes. Hudson Hallum also won the special general election held on July 12, 2011, and was subsequently certified as the winner of the House District 54 special election. At the time of the elections, District 54 included West Memphis, Marion, Earle, and Turrell, Arkansas, as well as other rural areas of Crittenden County.
Hudson Hallum and Kent Hallum tasked Carter, Malone, and others with identifying absentee ballot voters within District 54; obtaining and distributing absentee ballot applications to particular voters; determining when absentee ballots were mailed to absentee voters by the Crittenden County Clerk's Office; and making contact with recipients of absentee ballots to assist those voters in completing the ballots. Once such absentee ballots were completed, the absentee voters typically placed their ballots in unsealed envelopes, which were retrieved by Carter, Malone and others and then subsequently delivered to either Hudson Hallum or Kent Hallum for inspection to ensure that the absentee ballot votes had been cast for Hudson Hallum. After inspection by Hudson Hallum or Kent Hallum, the absentee ballots that contained votes for Hudson Hallum were sealed and mailed to the Crittenden County Clerk's Office. If a ballot contained a vote for Hudson Hallum's opponent, it was destroyed.
At the plea hearing held September 5, 2012, the defendants admitted that certain absentee ballot voters received things of value in exchange for their votes being cast for Hudson Hallum. For example, in or about May 2011, Carter and Malone provided a chicken dinner to an individual in exchange for the absentee ballot votes of that individual and one other individual. Further, on or about May 4, 2011, Carter contacted Hudson Hallum about a family of eight who had requested a "family meal" in exchange for their absentee ballot votes being cast in favor of Hudson Hallum. Carter requested $20 from Hudson Hallum to pay for the food, to which request Hudson Hallum agreed.
In addition, on or about May 5, 2011, Carter notified Hudson Hallum that some absentee ballot voters were "holding on" to their absentee ballots because they needed money for food. Hudson Hallum instructed Carter to obtain money for the absentee voters from Kent Hallum. Hudson Hallum further told Carter that $20 to $40 was too much to pay for one vote, but that this amount was acceptable to pay for the votes of multiple members of a household. On that same date, Hudson Hallum also told Carter, "We need to use that black limo and buy a couple of cases of some cheap vodka and whiskey to get people to vote." Two days later, Carter and Kent Hallum spoke with an individual in Memphis, Tennessee about getting a discounted price for the purchase of 100 half pints of vodka for the campaign.
The investigation was conducted by the Federal Bureau of Investigation and the Arkansas State Police.
Former Soldier Convicted of Stealing from the GovernmentRead the Press Release
Hattiesburg, Miss – Christopher Chase Bradshaw, 28, of Hattiesburg, pled guilty to conspiracy to defraud the United States and theft of government funds, U.S. Attorney Gregory K. Davis announced today. Bradshaw was a cashier in a military finance unit stationed in Afghanistan. As a result of his access to a military sponsored debit card program, Bradshaw was able to add money to his debit card, along with the debit cards of two others, without having those funds withdrawn from his personal bank account. During the course of the conspiracy, Bradshaw and others stole almost $30,000 from the government.
Bradshaw is scheduled to be sentenced on August 29, 2013 by United States District Judge Keith Starrett in Hattiesburg, Mississippi. He faces a maximum sentence of ten years in prison and a fine of up to $500,000.
The case was investigated by the Army Criminal Investigation Division, and was prosecuted by the United States Attorney’s Office and the Fraud Section of the Department of Justice.
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
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Former Security Contractor CEO Sentenced for Masterminding $31 Million Disadvantaged Small Business Fraud SchemeRead the Press Release
The former chief executive officer of a Virginia-based security contracting firm was sentenced in the Eastern District of Virginia to 72 months in prison for creating a front company to obtain more than $31 million intended for disadvantaged small businesses and for bribing the former regional director for the National Capital Region of the Federal Protective Service (FPS) as part of the scheme. The front company obtained the contracts through the Small Business Administration’s (SBA) Section 8(a) program, which allows qualified small businesses to receive sole-source and competitive-bid contracts set aside for minority-owned and disadvantaged small businesses.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Neil H. MacBride of the Eastern District of Virginia; National Aeronautics and Space Administration (NASA) Inspector General Paul K. Martin; SBA Inspector General Peggy E. Gustafson; Defense Criminal Investigative Service (DCIS) Special Agent in Charge of Mid-Atlantic Field Office Robert E. Craig; General Services Administration (GSA) Inspector General Brian D. Miller; and Department of Homeland Security (DHS) Deputy Inspector General Charles K. Edwards made the announcement after sentencing by United States District Judge Gerald Bruce Lee.
“Keith Hedman used his expertise gleaned from decades as a government contractor to cheat the system and steal tens of millions from minority-owned small business owners,” said Acting Assistant Attorney General Raman. “Today’s sentence shows that those who resort to deceit and bribery to secure federal contracts will be caught and held accountable.”
“Keith Hedman tried to game the system and take advantage of a government program designed to help minority-owned small businesses,” said U.S. Attorney Neil H. MacBride. “He committed fraud, he undermined the trust of the U.S. government and this type of conduct will not be tolerated. My office is committed to prosecuting those who cheat the government to the fullest extent of the law.”
“I commend the outstanding efforts of our agents and the other law enforcement agencies involved in this case in protecting the integrity of the Federal Government’s procurement program and taxpayer dollars” said NASA Inspector General Paul K. Martin.Keith Hedman, 53, of Arlington, Va., was sentenced today after pleading guilty to major government fraud and conspiracy to commit bribery on March 13, 2013. Hedman was also ordered to forfeit approximately $6.1 million.
According to court documents, in or about 2011 Hedman formed Company A, which was approved to participate in the 8(a) program based on the 8(a) eligibility of its listed president and CEO, an African-American female. When the listed president and CEO left Company A in 2003, Hedman became its sole owner, and the company was no longer 8(a)-eligible.
In 2003, Hedman created Company B, another Arlington-based security contractor, to ensure that he could continue to gain access to 8(a) contracting preferences for which Company A was no longer qualified. Prior to applying for Company B’s 8(a) status, Hedman selected an employee, Dawn Hamilton, 48, of Brownsville, Md., to serve as a figurehead owner based on her Portuguese heritage and history of social disadvantage. In reality, the new company was managed by Hedman and Company A senior leadership in violation of 8(a) rules and regulations. To deceive the SBA, the co-conspirators falsely claimed that Hamilton formed and founded the company and that she was the only member of the company’s management. Based on those misrepresentations, Company B obtained 8(a) status in 2004.
From 2004 through February 2012, Hedman – not Hamilton – impermissibly exercised ultimate decision-making authority and control over Company B by directing its finances, allocation of personnel, and government contracting activities. Hedman nonetheless maintained the impression that Hamilton was leading the company, including through forgeries of signatures of Hamilton to documents she had not seen or drafted. Hedman also retained ultimate control over the shell business’s bank accounts throughout its existence. In 2010, Hedman withdrew $1 million in cash from Company B’s accounts and gave the funds in cash to Hamilton and three other conspirators. In 2011, Hedman approached Hamilton’s brother about starting another shell company to continue the scheme. The trio submitted another fraudulent application to the SBA, but it was rejected.
Later in 2011, Hedman agreed to pay Derek Matthews, 47, of Harwood, Md., the former FPS Regional Director for the National Capital Region, $50,000 and a percentage of new business in exchange for Matthews helping Company B obtain contracts. During the bribery scheme, Matthews served as FPS Deputy Assistant Director for Operations, a law enforcement position in which he had daily oversight of physical security programs and oversight of approximately 13,000 FPS officers at approximately 9,000 federal buildings.
In total, the scheme netted government contracts valued at more than $153 million, from which Company B obtained more than $31 million in contract payments. The various conspirators netted more than $6.1 million that they were not entitled to receive from those payments. Seven other defendants have pleaded guilty in the scheme.
This case is being investigated by NASA Office of the Inspector General (OIG), the SBA -OIG, DCIS-OIG, GSA-OIG, and DHS-OIG, with assistance from the Defense Contract Audit Agency. Assistant U.S. Attorneys Chad Golder and Ryan Faulconer, a former Trial Attorney for the Criminal Division’s Fraud Section, are prosecuting the case on behalf of the United States.
Former Security Contractor CEO Sentenced for Masterminding $31 Million Disadvantaged Small Business Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – The former chief executive officer of a Virginia-based security contracting firm was sentenced in the Eastern District of Virginia to 72 months in prison for creating a front company to obtain more than $31 million intended for disadvantaged small businesses and for bribing the former regional director for the National Capital Region of the Federal Protective Service (FPS) as part of the scheme. The front company obtained the contracts through the Small Business Administration’s (SBA) Section 8(a) program, which allows qualified small businesses to receive sole-source and competitive-bid contracts set aside for minority-owned and disadvantaged small businesses.
U.S. Attorney Neil H. MacBride of the Eastern District of Virginia; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; National Aeronautics and Space Administration (NASA) Inspector General Paul K. Martin; SBA Inspector General Peggy E. Gustafson; Defense Criminal Investigative Service (DCIS) Special Agent in Charge of Mid-Atlantic Field Office Robert E. Craig; General Services Administration (GSA) Inspector General Brian D. Miller; and Department of Homeland Security (DHS) Deputy Inspector General Charles K. Edwards made the announcement after sentencing by United States District Judge Gerald Bruce Lee.
“Keith Hedman used his expertise gleaned from decades as a government contractor to cheat the system and steal tens of millions from minority-owned small business owners,” said Acting Assistant Attorney General Raman. “Today’s sentence shows that those who resort to deceit and bribery to secure federal contracts will be caught and held accountable.”
“Keith Hedman tried to game the system and take advantage of a government program designed to help minority-owned small businesses,” said U.S. Attorney Neil H. MacBride. “He committed fraud, he undermined the trust of the U.S. government and this type of conduct will not be tolerated. My office is committed to prosecuting those who cheat the government to the fullest extent of the law.”
“I commend the outstanding efforts of our agents and the other law enforcement agencies involved in this case in protecting the integrity of the Federal Government’s procurement program and taxpayer dollars” said NASA Inspector General Paul K. Martin.
Keith Hedman, 53, of Arlington, Va., was sentenced today to 72 months in prison and two years of supervised release after pleading guilty to major government fraud and conspiracy to commit bribery on March 13, 2013. Hedman was also ordered to forfeit approximately $6.1 million and pay a $15,000 fine.
According to court documents, in or about 2011 Hedman formed Company A, which was approved to participate in the 8(a) program based on the 8(a) eligibility of its listed president and CEO, an African-American female. When the listed president and CEO left Company A in 2003, Hedman became its sole owner, and the company was no longer 8(a)-eligible.
In 2003, Hedman created Company B, another Arlington-based security contractor, to ensure that he could continue to gain access to 8(a) contracting preferences for which Company A was no longer qualified. Prior to applying for Company B’s 8(a) status, Hedman selected an employee, Dawn Hamilton, 48, of Brownsville, Md., to serve as a figurehead owner based on her Portuguese heritage and history of social disadvantage. In reality, the new company was managed by Hedman and Company A senior leadership in violation of 8(a) rules and regulations. To deceive the SBA, the co-conspirators falsely claimed that Hamilton formed and founded the company and that she was the only member of the company’s management. Based on those misrepresentations, Company B obtained 8(a) status in 2004.
From 2004 through February 2012, Hedman – not Hamilton – impermissibly exercised ultimate decision-making authority and control over Company B by directing its finances, allocation of personnel, and government contracting activities. Hedman nonetheless maintained the impression that Hamilton was leading the company, including through forgeries of signatures of Hamilton to documents she had not seen or drafted. Hedman also retained ultimate control over the shell business’s bank accounts throughout its existence. In 2010, Hedman withdrew $1 million in cash from Company B’s accounts and gave the funds in cash to Hamilton and three other conspirators. In 2011, Hedman approached Hamilton’s brother about starting another shell company to continue the scheme. The trio submitted another fraudulent application to the SBA, but it was rejected.
Later in 2011, Hedman agreed to pay Derek Matthews, 47, of Harwood, Md., the former FPS Regional Director for the National Capital Region, $50,000 and a percentage of new business in exchange for Matthews helping Company B obtain contracts. During the bribery scheme, Matthews served as FPS Deputy Assistant Director for Operations, a law enforcement position in which he had daily oversight of physical security programs and oversight of approximately 13,000 FPS officers at approximately 9,000 federal buildings.
In total, the scheme netted government contracts valued at more than $153 million, from which Company B obtained more than $31 million in contract payments. The various conspirators netted more than $6.1 million that they were not entitled to receive from those payments. Seven other defendants have pleaded guilty in the scheme.
This case is being investigated by NASA Office of the Inspector General (OIG), the SBA -OIG, DCIS-OIG, GSA-OIG, and DHS-OIG, with assistance from the Defense Contract Audit Agency. Assistant U.S. Attorneys Chad Golder and Ryan Faulconer, a former Trial Attorney for the Criminal Division’s Fraud Section, are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Former Rhode Island Bank Employee Pleads Guilty to Embezzling Funds from Federal Tax ChecksRead the Press Release
PROVIDENCE, R.I. – Elvy Gomez, 39, of Providence, a former employee of Bank of America, has pleaded guilty in federal court in Providence to embezzling more than $95,000 from stolen federal tax checks. Gomez admitted to the court that he used his position at the bank to access a dormant checking account which he used to deposit stolen treasury checks and then withdraw the funds. Gomez pleaded guilty to one count each of theft of government property, forging an endorsement on treasury checks and money launderings.
Gomez’s guilty plea was announced by United States Attorney Peter F. Neronha and William P. Offord, Special Agent in Charge of the Boston Field Office of Internal Revenue Service, Criminal Investigation (IRS-CI).
According to information presented to the court, an investigation by IRS-CI determined that in January 2011, Gomez use his position as an employee of the bank to access a dormant checking account of an individual who moved to the Dominican Republic in 2009. He also obtained an ATM card in that person’s name. Gomez admitted that between April 2012 and August 2012, he deposited fourteen stolen treasury checks totaling $95,559 into the bank account and then withdrew the funds for his own personal use.
At sentencing, Gomez faces up to 10 years in federal prison; 3 years of supervised release and a fine of up to $250,000 on each charge. He is scheduled to be sentenced by U.S. District Court Chief Judge Mary M. Lisi on September 6, 2013.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
Agents from the U.S. Secret Service assisted 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]Former Illinois Legislative Aide Faces Fraud Charges Related to $1.2 Million GrantRead the Press Release
SPRINGFIELD, Ill. – A former legislative aide to an Illinois state representative, Lloyd Kelly, is scheduled to appear in federal court in Springfield next week for an initial pretrial conference related to an indictment that charges Kelly with a single count of mail fraud.
A federal grand jury returned a superseding indictment against Kelly, 52, in September 2012; the initial indictment was returned in July 2012. The indictment had remained sealed pending Kelly’s arrest and court appearance. Kelly was arrested on May 20, 2013, and appeared before Senior U.S. District Judge Richard Mills. At that time, Kelly was ordered released on bond, and trial was scheduled on Jul. 2, 2013.
The superseding indictment charges Kelly with one count of mail fraud related to the alleged fraudulent use of a $1.2 million grant awarded in 2007 by the Illinois Department of Public Health to the Let’s Talk Let’s Test Foundation, a non-profit organization founded by Kelly and a member of the Illinois House of Representatives, referred to in the indictment as Public Official A, in 2003. From June 2007 to February 2009, the indictment alleges that Kelly participated in a scheme to defraud the state of the grant funds.
According to the indictment, the African-American HIV/AIDS Response Act was enacted in Illinois in 2005, co-sponsored by Public Official A, to address the legislative finding that HIV/AIDS in the African-American community was a crisis separate and apart from the issue of HIV/AIDS in other communities. In 2006, the Act established a grant program to fund programs to prevent the transmission of HIV and to create a service delivery system to reduce the disparity between African Americans and other population groups in Illinois.
In or about January 2007, according to the indictment, Public Official A met with the Illinois Department of Public Health and others to determine grant recipients. The state transferred $3 million to the grant program, and the Department selected approximately 50 recipients to receive grants from $25,000 to $50,000. Only one recipient, the Let’s Talk Let’s Test Foundation, received two grant awards totaling $1.2 million, representing 40 percent of the total 2007 funding.
Under the terms of the grant agreements, signed by Kelly, the indictment alleges the Foundation agreed to provide a variety of services and programs, including development of a statewide African-American HIV Prevention Plan and a plan for creating and maintaining at least 17 one-stop shopping HIV/AIDS facilities statewide.
The indictment alleges that Kelly falsely represented that the Foundation would perform the requirements of the grant when he well knew the Foundation was neither capable of performing nor intended to perform the requirements, did not in fact perform a substantial number of the grant requirements, and diverted a substantial amount of the Foundation’s grant funds for other purposes, including Kelly’s personal benefit and that of Public Official A and their associates.
The indictment alleges that Kelly diverted grant funds to himself to pay personal expenses and a bonus payment to himself, toward purchase of his personal residence, and for personal expenses, as well as payments to others, including to an organization that paid wages to individuals for work performed for the Illinois representative, to pay rent for the representative’s legislative and campaign office; and $7,000 to purchase tickets, two skyboxes, food and alcohol for the 2007 Chicago Football Classic, which Kelly attended with the representative and others. The indictment further alleges that Kelly made false statements to Illinois Department of Public Health during its monitoring and auditing of the Foundation’s grants.
Assistant U.S. Attorney Timothy A. Bass is prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The ongoing investigation is being conducted by participating agencies of the Central District of Illinois’ U.S. Attorney’s Office’s Public Corruption Task Force including the U.S. Postal Inspection Service, Chicago Division; the Internal Revenue Service Criminal Investigations; and, the Illinois Secretary of State Office of Inspector General. The Illinois Department of Public Health is also cooperating in the investigation. Individuals who wish to provide information to law enforcement regarding matters of public corruption are urged to call the U.S. Attorney’s Office at 217-492-4450.
If convicted, the statutory penalty for the offense of mail fraud is up to 20 years in prison and fines of up to $250,000.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
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Former Fugitive Pleads Guilty to Multi-Million Dollar Sophisticated Fraud Scheme with Ties to NigeriaRead the Press Release
ALEXANDRIA, Va. – Tobechi Eyinna Onwuhara, 33, of Dallas, Texas, pleaded guilty today to charges of conspiracy to commit bank fraud, conspiracy to commit money laundering, and computer fraud.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; David E. Beach, Special Agent in Charge of the United States Secret Service’s Washington Field Office; and Earl L. Cook, Alexandria Chief of Police; made the announcement after the plea was accepted by United States District Judge Claude M. Hilton.
Onwuhara was charged with conspiracy to commit bank fraud and a federal warrant was issued for his arrest on Aug. 1, 2008. He was later indicted by a federal grand jury on April 21, 2011. He was arrested in Australia after more than four years as a fugitive. Onwuhara faces a maximum penalty of thirty years in prison on the conspiracy to commit bank fraud charge alone when he is sentenced on September 20, 2013.
According to court records, Onwuhara is the ringleader of a group of Nigerians who used fee-based web databases to search for potential victim account holders with large balances in home equity line of credit (HELOC) accounts. This information included name, address, date of birth, and social security number. Once the conspirators identified a victim, they used other online databases to obtain information commonly used in security questions, such as the victim’s mother’s maiden name. The conspirators then obtained credit reports on the victims in order to verify personal information and account balances.
Armed with a victim’s personal information, the conspirators called the victim’s financial institution, impersonated the victim, and transferred the majority of the available money from the HELOC account into an account from which a wire transfer could be sent. The conspirators would then wire transfer hundreds of thousands of dollars to domestic or overseas accounts controlled by members of the conspiracy. The conspirators used caller-ID spoofing services, prepaid cell phones and PC wireless Internet access cards, and transferred victims’ home telephone numbers in order to impersonate the victim and avoid identifying themselves.
Once the fraudulently-transferred funds arrived in the destination bank, a conspirator with access to the account would withdraw funds and transfer them to other members of the conspiracy after taking a portion of the proceeds for himself.
This case was investigated by the FBI’s Washington Field Office, United States Secret Service’s Washington Field Office, and the Alexandria Police Department, with assistance from the U.S. Marshals Service. Assistant United States Attorneys Alexander T.H. Nguyen and Lindsay Kelly are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.