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8 August 2013
Diana Shipping Services S.A. and Two Engineers Convicted in "Magic Pipe" CaseRead the Press Release
NORFOLK, Va. – Diana Shipping Services S.A., a Panamanian corporation, Ioannis Prokakis, 61, and Antonios Boumpoutelos, 56, both citizens of Greece, were convicted today after a twelve-day bench trial on charges related to the illegal discharge of waste oil and oil-contaminated waste water from the M/V Thetis, a cargo vessel operated by Diana Shipping Services.
All the defendants were convicted of conspiracy, knowing failure to fully maintain an oil record book, falsification of records and concealing tangible object in a federal investigation. In addition, Diana Shipping Services and Prokakis were also convicted of obstruction of justice.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia and Robert G. Dreher, of the Justice Department’s Environment and Natural Resources Division, made the announcement after the verdicts were given by United States District Judge Mark S. Davis.
Diana Shipping Services, S.A. faces a maximum fine of $5.5 million and five years of probation. Prokakis and Boumpoutelos face a maximum sentence of 5 years for the conspiracy conviction, 6 years per failure to maintain an oil record book conviction, and 20 years per falsification of record conviction. Prokakis faces an additional 5 year sentence for obstruction of justice. All three defendants will be sentenced on November 8, 2013.
Diana Shipping Services S.A., Prokakis, and Boumpoutelos, were indicted on May 22, 2013, in an eleven-count superseding indictment alleging the illegal discharging of waste oil and oil-contaminated waste water in violation of the Act to Prevent Pollution from Ships. According to court records, in September 2012, crewmembers of the M/V Thetis, a cargo vessel operated by Diana Shipping Services, reported that the vessel was discharging its bilge waste and sludge illegally by various means, including a “magic pipe” that bypassed the oily water separator. Coast Guard inspectors boarded the vessel when it entered port in Norfolk and discovered the “magic pipe” and that the oily water separator was non-functioning. The inspectors were also presented with an oil record book that contained false entries made by the ship’s Chief Engineer, Ioannis Prokakis and the Second Engineer Antonios Boumpoutelos. During the inspection, Prokakis lied to inspectors about the “magic pipe” and told other members of the engineering crew to not disclose its existence to the Coast Guard inspectors.
This case was investigated by the Coast Guard Investigative Service. Assistant United States Attorney Joseph L. Kosky and Trial Attorney Kenneth E. Nelson with the Department of Justice’s Environment and Natural Resources Division, Environmental Crimes 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.Demolition Company Owner Pleads Guilty to Violating Clean Air ActRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – Lamont P. Pryor, 47, of Lima, Ohio pleaded guilty in U.S. District Court to violating the Clean Air Act in connection with his company’s handling of asbestos during the demolition of the former Piqua Medical Center in 2008.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Randall K. Ashe, Special Agent in Charge of the U.S. Environmental Protection Agency (U.S. EPA), Ohio Attorney General Mike DeWine and Scott J. Nally, Director of the Ohio Environmental Protection Agency (Ohio EPA) announced the pleas entered today before U.S. District Judge Timothy S. Black.
“The dangers of improperly handled asbestos are well-known and well documented,” U.S. Attorney Stewart said. “Knowingly failing to handle the material properly is a crime and must be punished.”
According to court documents, Pryor and his company, Avalon Commonwealth Inc., removed scrap metal from the hospital as part of the demolition process. The scrap metal was removed and sold, but the rest of the demolition debris, including friable asbestos, was piled in areas around the hospital, exposed to the wind and elements. Pryor knew that he was not supposed to leave the friable asbestos outside the hospital, exposed to the elements, but instead was supposed to properly deposit the asbestos that was generated as result of his renovation and demolition activities at the hospital at a licensed asbestos waste disposal facility. Pryor knowingly failed to do so.
A representative of the Regional Air Pollution Control Agency (RAPCA), the local air pollution control agency serving Miami County and the city of Piqua, inspected the site in December 2008, saw the damaged asbestos outside the hospital, and asked that demolition be halted while the investigation took place.
“This defendant put his workers and the residents of a Piqua neighborhood at risk of asbestos exposure just to cut corners,” Attorney General DeWine said. “We cannot tolerate a knowing choice to violate the law and risk the health of Ohio families, and our Environmental Enforcement Unit will continue to investigate criminal environmental activity within the state.”
“There is no safe level of exposure to asbestos,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “Despite knowing that the Piqua Hospital contained friable asbestos, the defendant failed to notify authorities before demolition as required by law nor did he employ qualified workers to remove it legally and safely. As a result, asbestos was broken up and piled in areas around the hospital, threatening the environment and jeopardizing the safety of the general public. Today’s plea clearly shows that anyone who tries to make money by breaking the law will ultimately pay the price.”Pryor pleaded guilty to three counts of violating the asbestos removal provisions of the Clean Air Act. The plea agreement includes an agreed-to sentence of 13 months in prison. The court will review the terms of the agreement before determining whether or not to accept all the terms, including the sentence.
The case was investigated by the U.S. EPA's Criminal Investigation Division, Bureau of Criminal Investigation’s Environmental Enforcement Unit in Ohio Attorney General DeWine’s Office, the Ohio EPA Office of Special Investigations and RAPCA. It was prosecuted by Assistant U.S. Attorney Alex Sistla and Special Assistant U.S. Attorney Brad Beeson with the U.S. EPA.
# # #Closing Agent Admits Participating in Large-Scale Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A paralegal today admitted participating in a long-running, large-scale mortgage fraud scheme that defrauded financial institutions of at least $2 million, U.S. Attorney Paul J. Fishman announced.
Linda Cohen, 55, of Orange, N.J., pleaded guilty before U.S. District Judge Esther Salas to an information charging her with one count of conspiring to commit bank fraud and one count of transacting in criminal proceeds.
According to documents filed in this case and statements made in court:
Cohen worked as a paralegal who handled real estate closing for S.B., an attorney licensed in New Jersey. Cohen acted as the settlement agent for fraudulent mortgage loans brokered by conspirator Klary Arcentales, 45, of Lyndhurst, N.J., on behalf of Premier Mortgage Services. As closing agent, Cohen furthered the scheme by convening closings, receiving funds from lenders, and preparing “HUD-1” reports that purported to reflect the sources and destinations of funds for mortgages on subject properties. Those HUD-1s were neither true nor accurate. Cohen routinely certified HUD-1s in which she purported to have received a down payment from the buyer when no down payment had been made. At or following the closings, Cohen disbursed mortgage loan proceeds directly to Premier Mortgage Services, Arcentales, and other conspirators. Cohen created shell bank accounts into which she funneled the proceeds of her fraudulent activity.
The count of conspiracy to commit bank fraud to which Cohen pleaded guilty is punishable by a maximum potential penalty of 30 years in prison and a $1 million fine, and the count of transacting in criminal proceeds is punishable by a maximum penalty of 10 years in prison and a fine of $250,000 or twice the gross amount of any gain or loss. Sentencing is scheduled for Nov. 18, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty plea. He also thanked the Social Security Administration-Office of Inspector General, under the direction of Special Agent in Charge Edward Ryan, for its role in the investigation.
The government is represented by Assistant U.S. Attorneys Zach Intrater and Rahul Agarwal of the Newark office.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
13-331
Defense counsel: Brian Daly Esq., Middletown, N.J.
Cohen, Linda Information
Carlos Alberto Aguilar Sentenced for Illegal ReentryRead the Press Release
CARLOS ALBERTO AGUILAR, age 40, a citizen of Honduras, was sentenced yesterday by U. S. District Judge Martin L.C. Feldman to 10 months imprisonment, announced U.S. Attorney Dana Boente. In addition to the term of imprisonment, Judge Feldman ordered that AGUILAR be placed on three years of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of supervised release.
According to court documents, on April 17, 2013, AGUILAR pled guilty to a one-count indictment admitting he was an alien who was previously removed and was knowingly and unlawfully found in the United States, in Jefferson Parish, Louisiana on December 18, 2012, without the Attorney General or Secretary of the Department of Homeland Security, having expressly consented to his re-application for admission into the United States. AGUILAR’s sentence was subject to enhancement based on a previous felony conviction.
This case was investigated by United States Immigration and Customs Enforcement - Enforcement and Removal Operations and the Jefferson Parish Sheriff’s Office. The case was prosecuted by Special Assistant United States Attorney Robert Weir.
Cameron County Man Convicted on Charges Related to Armed CarjackingRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced that following a three-day trial before U.S. District Court Judge Christopher C. Conner, an Emporium, Pennsylvania man was convicted late Wednesday on charges of carjacking, brandishing a gun during a crime of violence and receiving a stolen firearm stemming from an armed carjacking.
According to United States Attorney Peter J. Smith, on August 8, 2012, Thomas Edward Smith, age 58, pretended to be working on a car parked along a street in Emporium and flagged down an employee of Citizens & Northern Bank. Smith entered the vehicle and pulled out a handgun. Smith then directed the victim to drive to the Citizens & Northern Bank branch in Emporium. Smith told the victim this would be "the worst day of her life," that the victim and the bank had taken his house away from him in a bank foreclosure, and that the victim and another bank employee were now "going to pay for it." The victim jumped out of the vehicle to escape from Smith, who then also fled from the vehicle.
Smith was indicted in September 2012.
Sentencing is scheduled for November 15, 2013.
The case was investigated by the Emporium Borough Police Department, the Pennsylvania State Police, and the Federal Bureau of Investigation. Prosecution was handled by Assistant United States Attorney George J. Rocktashel.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.In this case, the maximum penalty under the federal statute is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
California Man Sentenced to 61 Months for Bank Fraud and Identity Theft SchemeRead the Press Release
RICHMOND, Va. – Anthony Romey Carter, 52, of Elk Grove, California, was sentenced today to 61 months in prison, followed by 5 years of supervised release, for conspiracy to commit bank fraud and aggravated identity theft. He was also ordered to pay $226,677.00 in restitution to Wells Fargo Bank.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; and William G. Frantzen, Special Agent in Charge of the United States Secret Service’s Richmond Field Office, made the announcement after sentencing by Senior United States District Judge Robert E. Payne.
“Defendant Carter stole from Wells Fargo Bank and the account holders who entrusted their money to that institution,” said United States Attorney Neil H. MacBride. “Theft of identities and funds will not be tolerated and we are committed to prosecuting these twenty-first century thefts.”
Carter pleaded guilty on May 10, 2013. According to court documents, Carter admitted to participating in a conspiracy involving the unauthorized withdrawal of hundreds of thousands of dollars from accounts held at Wells Fargo Bank. Members of the conspiracy created false forms of identification for several Wells Fargo accountholders using personal identifying information obtained without lawful authority. Between November 2012 and December 2012, Carter traveled from California to bank branches in Virginia and South Carolina, where he posed as the individual accountholders. Using customer account information and false forms of identification, Carter personally withdrew over $225,000 from numerous Wells Fargo accounts. Carter and his co-conspirators divided the stolen proceeds among themselves following the withdrawals.
This case was investigated by the United States Secret Service. Assistant United States Attorneys Dominick S. Gerace and Michael Gill prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.California Businessman Pleads Guilty to Conspiracy to Defraud the Internal Revenue ServiceRead the Press Release
The Justice Department announced today that Gary Mach, a Palm Desert, Calif. resident who operated Crystal Springs Pool Service (CSPS), pleaded guilty to conspiracy to defraud the Internal Revenue Service (IRS).
According to the plea agreement, beginning around January 2002 and continuing through December 2010, Mach failed to report substantial income he earned from CSPS, a pool servicing business operated throughout Riverside County, Calif. Mach and others established fictitious trusts which they used to receive income and hold assets in an attempt to conceal the assets and income from the IRS.
According to court documents, Mach purported to operate a trust called “Quintessential,” and directed that his paychecks be made payable to Quintessential. He also opened a bank account in the name of Quintessential where he deposited CSPS proceeds. Mach admits that he did not report to the IRS any of the income he earned from CSPS between 2002 and 2010 and used Quintessential to conceal income from the IRS. In furtherance of the conspiracy, Mach also attempted to impede an IRS summons issued to a bank for business account records. Mach closed his bank account after the bank complied with the IRS summons.
As stated in the plea agreement, the agreed upon total unreported income for the tax years 2002 through 2010 is $1,410,430 and the total tax due and owing is $270,725. Mach has also agreed that he should be ordered to pay restitution for the amount of total tax due and owing.
Mach’s sentencing is scheduled for Nov. 14, 2013, before U.S. District Judge John A. Kronstadt and he faces a maximum penalty of five years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss resulting from his offense.
Kathryn Keneally, Assistant Attorney General for the Justice Department's Tax Division, commended the efforts of special agents of IRS - Criminal Investigation, who investigated the case, Tax Division Trial Attorneys Sonia M. Owens and Mark L. Williams, who prosecuted the case, and Assistant U.S. Attorneys Sandra R. Brown and Paul Rochmes of the U.S. Attorney’s Office for the Central District of California, who assisted with the prosecution.
Buffalo Man Convicted Following Jury Trial of a Drug ChargesRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Alexi Caliz, 50, of Buffalo, N.Y., was convicted of possessing, with the intent to distribute. cocaine. The charge carries a mandatory minimum sentence of 5 years and a maximum of 40 years in prison, a $5,000,000, fine or both.
Assistant U.S. Attorneys John M. Alsup and Melissa M. Marangola, who handled the trial, stated that on August 10, 2012, detectives with the Niagara Falls Transit Authority intercepted a suspicious package found to contained approximately 980 grams of cocaine concealed inside a muffler. Agents with the Drug Enforcement Administration, assisted by officers with the Buffalo Police Department and the Town of Cheektowaga Police assisted in the search of the defendant’s residence after he signed for and accepted the package.The verdict is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Niagara Falls Transit Authority Police, under the direction of Chief George Gast, and Town of Cheektowaga Police Department, under the direction of Chief David J. Zack.
Sentencing is scheduled for December 5, 2013 at 9:00 a.m. before Chief U.S. District Judge William M. Skretny who presided over the trial.Baltimore Men Plead Guilty to Armed Robbery SpreeRead the Press Release
Co-Conspirators Admit Committing at Least a Dozen Armed Robberies of Stores and Businesses
Baltimore, Maryland - Quindell Ryeshawn Gardner, age 22, of Baltimore, Maryland pleaded guilty today to a commercial robbery conspiracy and possession of a firearm in furtherance of a crime of violence. On August 5, 2013, co-conspirator Tavon McPhaul, also age 22, of Baltimore, pleaded guilty to the same charge.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Anne Arundel County Police Chief Kevin Davis.Police Commissioner Anthony Batts said, “I want to extend my deep appreciation to all of the local, state and federal partners who demonstrate an ongoing commitment to making Baltimore safer.”
“I’m happy that law enforcement partners were able to come together and build cases against these individuals,” said Chief Kevin Davis of the Anne Arundel County Police Department, “Clearly our citizens and business community are now much safer.”
According to their plea agreements, Gardner, McPhaul and others robbed stores in the Baltimore area. After deciding which place to rob, the conspirators would steal a car to use during the robbery. They also used a gun during the robberies to steal cash and cigarettes.
Gardner and McPhaul admitted that they committed approximately 22 and 12 armed robberies, respectively, with Gardner going into the store to commit the robbery and McPhaul driving the getaway vehicle. Between June 28 and July 4, 2012, Gardner and McPhaul robbed five Baltimore area convenience stores, including a convenience store in the 6300 block of Eastern Avenue in Baltimore on July 4, 2012, with Gardner using a short-barreled shotgun in each of the robberies.
Gardner was arrested following two convenience store robberies on July 4, 2012, after a car chase. Gardner’s clothing matched that of the individual who participated in both robberies that day. McPhaul, who was driving the getaway car, escaped on foot. While running, McPhaul attempted to wipe the firearm clean with a blanket. A sawed-off shotgun was recovered along the path of McPhaul’s escape. The vehicle driven by McPhaul during the robbery was found to be stolen.
Gardner, McPhaul and the government have agreed that if the Court accepts their plea agreements, Gardner will be sentenced to between 15 and 25 years in prison and McPhaul will be sentenced to between 11 and 15 years in prison. U.S. District Judge Marvin J. Garbis has scheduled sentencing for Gardner for October 21, 2013 at 10:00 a.m., and McPhaul is scheduled to be sentenced on October 15, 2013.
United States Attorney Rod J. Rosenstein praised the FBI, the Baltimore City and Baltimore County Police Departments and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Benjamin M. Block, who is prosecuting the case.
25-year Sentence for Miami County Man Who Producted Sexually Explicit Videos of Children He BabysatRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON – Kevin Dwayne Todd, 42, of Ludlow Falls, Ohio was sentenced in U.S. District Court to 300 months in prison for producing sexually explicit videos of pre-pubescent children he babysat and offering online to trade the videos. Todd will be under court supervision for the rest of his life.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI), William Hayes, acting special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan, Franklin County Sheriff Zach Scott, Miami County Sheriff Charles A. Cox, and Darke County Sheriff Toby L. Spencer announced the sentence handed down today by U.S. District Judge Timothy S. Black.
“Sexual exploitation of children by someone who has the responsibility of caring for them is a devastating crime,” U.S. Attorney Stewart said. “As a sex offender, he must now register with law enforcement anywhere he lives, works or goes to school once he gets out of prison.”
According to court documents, an undercover investigator with the Franklin County Internet Crimes Against Children Task Force (ICAC) responded to an ad Todd posted on the internet in November 2012 seeking people looking for “taboo.” Through a series of emails, Todd asked the undercover investigator to meet and trade videos and pictures of child pornography. They arranged a meeting and officers arrested Todd on November 24, 2012 when he showed up for the meeting. Investigators found DVDs and other storage media containing pornographic videos and photos in Todd’s car.
Forensic examination found that Todd had produced the videos of the females between August 2010 and November 2012 in the bathroom of his residence.
Todd has been held without bond since his arrest. He pleaded guilty on March 7, 2013 to one count of sexual exploitation of children.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, 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/.
U.S. Attorney Stewart commended the cooperative investigation by the agencies involved, as well as Assistant U.S. Attorney Sheila Lafferty, who is representing the United States in this case.
"King Tweet" Sentenced to More Than Fifteen Years in Prison for Possessing A FirearmRead the Press Release
Tampa, FL - U.S. District Judge Virginia Hernandez-Covington yesterday sentenced Daniel Arroyo (39, Tampa) to 15 years, eight months in federal prison for being a felon in possession of a firearm. The court also ordered Arroyo to forfeit the stolen firearm, which was used to facilitate the offense. Arroyo pleaded guilty on February 21, 2013.
According to court documents, Arroyo, also known as "King Tweet," worked with a prostitute to steal from her "johns." On August 8, 2011, Arroyo stole a Springfield Model XD-9 semiautomatic handgun from a "john," but the gun owner unexpectedly called law enforcement to report the theft. Law enforcement eventually recovered the gun at an abandoned house, where Arroyo and the prostitute had hidden it, to be retrieved later.
Arroyo is a convicted felon. His prior felony convictions include attempted murder in the first degree, aggravated battery (deadly weapon), carrying a concealed firearm, robbery, discharge of a firearm from a vehicle (occupied), and battery on a law enforcement officer. He is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Hillsborough County Sheriff's Office, and Tampa Police Department. It was prosecuted by Assistant United States Attorney Thomas N. Palermo.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
7 August 2013
Wyoming Co. Pill Dealer with $570,000 in Illegal Drug Proceeds Pleads Guilty to Federal ChargeRead the Press Release
Police seize hundreds of thousands in cash, firearms from Lester’s Wyoming residences
BECKLEY – A 55-year-old pill dealer who illegally sold prescription painkillers in Wyoming County pleaded guilty today to a federal charge, announced U.S. Attorney Booth Goodwin. Delbert Lester, of McGraws, Wyoming Co., W.Va., entered a guilty plea to possession of oxycodone with intent to distribute before United States District Judge Irene C. Berger in Beckley. From January 11, 2011 through May 4, 2013, Lester illegally sold prescription pills to a confidential informant working in cooperation with law enforcement authorities on eight separate occasions. Lester, who maintained two residences in McGraws, W.Va., lived at one residence and conducted illegal pill transactions at the other.
On May 9, 2013, law enforcement agents executed search warrants on Lester’s two residences. During the searches, agents recovered 190 30-milligram oxycodone pills and 155 10-milligram oxycodone pills. Agents also recovered a total of $570,000 in cash and several firearms including two loaded .22 caliber semi-automatic pistols.
Lester faces up to 20 years in prison when he is sentenced on December 4, 2013.
According to his plea agreement, Lester will forfeit the $570,000 in illegal drug proceeds that was seized from his residence.
The investigation was conducted by the Southern Regional Drug and Violent Crime Task Force, with assistance from the Internal Revenue Service. Assistant United States Attorney Haley Bunn is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
White River Man Charged with First Degree Burglary and Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a White River, South Dakota, man has been indicted by a federal grand jury for First Degree Burglary and Assault with a Dangerous Weapon.
Albert Kelly, age 50, was indicted on July 17, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 5, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 25 years in custody, a $250,000 fine, or both; 5 years of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Kelly is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Kelly was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for September 24, 2013.Vermilion Man Sentenced to 17 1/2 Years in Prison for Defrauding Nearly 100 Clients Out of $4.4 MillionRead the Press Release
A Vermilion man was sentenced to 17 1/2 years in prison and ordered to pay more than $4.4 million in restitution for financial crimes that victimized nearly 100 clients, law enforcement officials said today.
Richard A. Zakarian, age 48, pleaded guilty this year to two counts each of wire fraud and mail fraud and one count of making and subscribing false income tax returns. Zakarian was a certified financial planner and a self-employed tax preparer who owned and operated several business ventures.
Zakarian operated two schemes – one to defraud investment clients (many of whom were also clients of his tax-preparation business), another to defraud clients whose payroll taxes he handled through a company known as Ben Franklin Payroll Service.
Many of the payroll tax victims were churches, charities and other non-profit organizations that Zakarian lured as clients through purported grants from charity he claimed to operate. Court documents further detail Zakarian’s falsification of his tax returns to conceal his fraudulently generated income from the investment scheme.
“This defendant preyed on non-profits, churches and small businesses that struggled to make ends meet while making their communities better,” Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, said. “He never meant to help them, only to defraud them. This was a systemic, deliberate pattern of behavior that took place over years.”
Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigations’ Cleveland Office, said: “Zakarian orchestrated multiple financial schemes that all had one common thread, monetary benefit to him. Authorities will continue to bring those to justice that choose to unlawfully violate the trust of their clients.”
Documents filed in U.S. District Court detail the following schemes:
THE INVESTMENT SCHEME
From September 2002 through August 2012, Zakarian devised a scheme to defraud investment clients by inducing them to invest their retirement funds, and occasionally other savings, through him as their account representative through false and fraudulent misrepresentations. He primarily targeted clients from his tax-preparation business when they received their tax refunds or sought his financial advice.
Zakarian misled clients to believe their funds would be placed in safe, guaranteed-return investments when, in fact, he diverted the funds to pay personal and business expenses and invested in risky investments for which he had a consistent history of incurring large losses.
Zakarian recruited 25 investment clients, often targeting tax preparation clients who he knew to have available funds and to be vulnerable to his pitch through their lack of financial sophistication and/or prior relationship of trust in him.
While some received a return on part or all of their investment, 23 clients incurred combined out-of-pocket losses of more than $1 million. In addition, the clients did not receive hundreds of thousands of dollars of gains on their investments that Zakarian falsely reported to them during the scheme.
A number of clients were retired, out of work, or nearing retirement. Most invested through Zakarian by moving their money from in traditional, relatively safe and dependable stocks, bonds and mutual funds.
In one case, Zakarian convinced a recently retired client to pay an early-withdrawal penalty to move money from a certificate of deposit purchased upon retirement. He induced another client to redeem a life insurance annuity to generate investment funds and talked her out of using the money to pay off her home mortgage or car loans.Until mid-2009, Zakarian obtained use of clients funds primarily by having them place their investments with companies offering self-directed IRA services, and then having those companies transfer the funds to Zakarian as investments in promissory notes he issued. Zakarian initially issued the notes personally, as Zakarian Tax Consultants, but later issued them through a shell real estate company, Viewcrest Properties. Zakarian touted the IRA companies to his clients and misled many clients into believing that they were investing in those companies or that the use of the companies would assure the safety of their investments. Due to Zakarian’s misrepresentations, many clients did not realize their investments involved promissory notes.
THE PAYROLL TAX SCHEME
Zakarian began his separate payroll tax scheme in 2010 that continued through August 2012.
He induced clients to retain Ben Franklin Payroll Service, which he owned and operated, leading them to believe the company would and did file the client’s required employment tax returns and reports and pay the clients’ federal, state and local tax obligations.
The funds should have been forwarded to various taxing authorities to pay the income taxes of his clients’ employees. In reality, he failed to file many of the returns and diverted substantial portions of the clients’ funds to pay his own personal and business expenses and invest in highly-leveraged, risky investments with a consistent history of sustaining large losses.
Zakarian devised the scheme in hopes of raising money to be able to pay victims of his investment fraud scheme described above. He hoped to generate large, quick profits, which he would use to cover his operating expenses, repay his investment clients, pay his clients’ employment taxes and have money left over; instead, he consistently lost money.
He attempted to solicit for-profit clients by offering services well below market rates and below his own operating costs, such as a rate of $1 per employee per pay period. Later in 2010, after this failed to generate as many clients as he envisioned, Zakarian developed a new plan to solicit churches, charities and other non-profits through a purported “grant” program. These organizations were targeted as they typically had tight budgets sensitive to payroll costs. Zakarian’s primary objective was to gain access to their operating accounts.
Zakarian began marketing Ben Franklin Payroll Service as being affiliated with Zakarian Charities and the Benjamin Franklin Foundation, organizations established “as an effort to give back to the community.” He offered payroll grants from the Benjamin Franklin Foundation to non-profit organizations to cover two years of free payroll service through Ben Franklin Payroll Service.
To make the grant process appear legitimate, the application required the applicant to submit a one- or two-page narrative history and mission statement, a copy of the IRS tax-exempt determination letter, a list of the Board of Directors, an IRS Form 990 and an annual report, if available. About two weeks after receiving the client’s application, Zakarian sent a congratulatory letter, announcing that the Benjamin Franklin Foundation had awarded a two-year renewable grant.
Rather than forwarding the monies withdrawn to from his clients’ accounts directly to taxing authorities, Zakarian instructed his employees to transfer the tax funds to a Ben Franklin Payroll Service operating account. Clients were sent false quarterly employment tax returns and payroll summaries, giving the false impression that their payroll taxes were being properly handled.
In total, Ben Franklin had at least 72 clients who incurred combined losses of more than $3.4 milllion from Zakarian’s fraudulent diversion of their employment tax funds entrusted to his company. Just over half of the losses were incurred by at least 29 non-profit organizations, with the rest being incurred by at least 43 businesses.
Zakarian also filed false federal income returns for the years 2006 through 2009, failing to report the income he received from the investment scheme. He filed the 2006 through 2008 returns deliquently in December 2009 after the Ohio Division of Securities requested copies. On the 2006 and 2007 returns, Zakarian also falsely claimed substantial losses on the investments he made with the fraudulently obtained client funds, and used those losses to offset other income he earned those years.
This case was prosecuted by Assistant U.S. Attorneys Robert J. Patton and John M. Siegel, following an investigation by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, the Lorain Police Department, and the Lorain County Prosecutor’s Office. The investigators also received assistance from the Ohio Department of Commerce, Division of Securities.
U.S. Court of Appeals Affirms Verdicts and Sentences of Last Remaining Defendants in Dallas City Hall Corruption CaseRead the Press Release
DALLAS — On Friday, Aug. 2, the U.S. Court of Appeals for the Fifth Circuit in New Orleans, La., issued a 32-page published opinion affirming the convictions and sentences of the last four remaining defendants in the Dallas City Hall Corruption case, including former Dallas Mayor Pro Tem Donald Hill, his wife Sheila Farrington Hill, former City Plan & Zoning Commissioner D’Angelo Lee and Darren Reagan, head of the Black State Employees Association. In so doing, the Court emphasized that the government’s evidence was “strong” and that it “amply” supported the convictions and sentences in a case “involving substantial and wide-ranging public corruption charges related to government-subsidized [housing] development projects in Dallas.” The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
“The successful resolution of this case would not have been possible without the tireless efforts of many dedicated public servants,” said U.S. Attorney Saldaña. “I commend their efforts.”
The opinion was released three months after the three-judge panel heard oral argument in the case. The appellate briefing spanned nearly 1,000 pages and included close to 20 issues. The opinion was the third released by the Fifth Circuit in this corruption prosecution. The first opinion was released in July 2012 and affirmed the conspiracy conviction of codefendant Jibreel Rashad, who was tried separately in January and February 2010. The second was released in October 2012 and affirmed the bribery and money laundering convictions of contractor Ronald Slovacek, who was tried in November 2010.
The appeal involving the final defendants, including Hill, Lee, and two others, followed a three-month trial that began in June 2009. Hill, who testified in the case, and Farrington and Lee were convicted of counts related to bribery, extortion and money laundering. Reagan was convicted of counts related to extortion. Hill received a sentence of 18 years, Lee and Reagan received 14 years and Farrington Hill received nine years.
All of the defendants appealed their convictions, and two, Reagan and Lee, appealed their sentences. In affirming the bribery and money laundering convictions, the Court reasoned that “in order to obtain Hill’s political support for his housing developments, [housing developer Brian] Potashnik agreed to hire Farrington as a community consultant … [and] regularly paid Farrington … despite Farrington never having done any work for him. Hill and Lee also demanded that Potashnik involve various non-profit organizations in his developments, and these organizations then remitted part of their fees to Farrington…. Farrington used money from [her business] account to buy cars for Hill and Lee and made cash withdrawals from the account for Lee. In return for Potashnik’s cooperation, Hill, among other acts, pushed the City Council to approve a financing deal for one of Potashnik’s housing developments.”
In affirming the extortion convictions, the Court noted that “[w]hile these machinations with respect to Potashnik were ongoing, the appellants were also involved in illegal schemes related to Potashnik’s rival, Fisher,” which culminated in “[t]he FBI … photograph[ing] Reagan giving Hill an envelope containing $10,000” after Reagan received one of the extortion payments from Fisher.
Assistant U.S. Attorneys Leigha Simonton and Wes Hendrix were the lead attorneys in the appeals. The district court cases were investigated by the FBI and Internal Revenue Service – Criminal Investigation. They were prosecuted by Assistant U.S. Attorneys Chad Meacham and Marcus Busch and Ms. Saldaña, before becoming U.S. Attorney.
Two North Jersey Men Plead Guilty in Stolen Identity/Tax Fraud SchemeRead the Press Release
NEWARK, N.J. – Two North Jersey men admitted today they used stolen identities to file tax returns and claim refunds to which they were not entitled, U.S. Attorney Paul J. Fishman announced.
Alidu Dramani, 33, of Irvington, N.J., and Evans Boamah, 30, of Elizabeth, N.J., pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to informations charging them with conspiring to make false claims against the United States.
According to documents filed in this case and statements made in court:
Dramani and Boamah were employed at the North Jersey Developmental Center in Totowa, N.J., a mental health institution operated by the State of New Jersey. Using their access to patient information, the defendants stole names and Social Security numbers of patients at the center. They then provided the stolen identity information to another conspirator for use by a tax preparer to file false tax returns under those stolen identities to get federal tax refunds to which they were not entitled. As a result of the defendants’ participation in the conspiracy, tax preparers filed, attempted and intended to file false tax returns for the tax years 2009 through 2011 seeking $396,416 in tax refunds.
The count of conspiracy to defraud the government to which the defendants pleaded guilty is punishable by a maximum potential penalty of 10 years in prison and a fine of $250,000, or twice the pecuniary gain or loss from the offense. Sentencing is scheduled for Nov. 13, 2013.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Lorraine S. Gerson of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
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Defense counsel: Dramani: Peter W. Till Esq., Springfield, N.J.
Boamah: Stephen Wellinghorst Esq., Hackensack, N.J.Dramani Information
Boamah InformationTwo Former Area Business Owners Sentenced to Prison for Failing to Report More Than $22 Million in Income They SharedRead the Press Release
CHICAGO — A day after together paying more than $10 million in restitution to the Internal Revenue Service, two former business owners were sentenced to federal prison for failing to report as income and pay taxes on more than $22 million they diverted from the business and divided equally. The defendants, MICHAEL H. MARTORANO and WILLIAM S. SEFTON, were sentenced yesterday to 3½ and four years in prison, respectively, after each pleaded guilty in March to three counts of filing false federal income tax returns.
The defendants were the majority owners of the former Consumer Benefit Service, Inc., or Cbsi, a Naperville business that provided membership and consumer discount programs to businesses and associations worldwide.
Martorano, 66, of Ft. Atkinson, Wis., and formerly of Naperville, who was Cbsi’s president, and Sefton, 62, of Scottsdale, Ariz., and formerly of the Chicago area, who was vice president/secretary of Cbsi, under-reported or failed to report the income they diverted over a period of five years. The government argued at sentencing that both men were motivated by greed, and, despite the payment of restitution, urged incarceration to punish them and deter others from committing tax crimes.
U.S. District Judge Edmond E. Chang yesterday imposed the 42-month sentence for Martorano and the 48-month term for Sefton, and ordered both to begin serving their sentences on Nov. 5. Judge Chang also fined both defendants $12,500 and ordered them to pay the mandatory costs of tax offense prosecution.
In addition, Judge Chang ordered restitution, which both defendants paid on Monday. Martorano paid approximately $1.494 million and Sefton paid approximately $1.441 million for individual income taxes they owed the IRS, and together they paid approximately $7.308 million in corporate taxes owed by their business, for a total of $10,244,144.
The sentences were announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
Martorano and Sefton, who were charged in September 2012, admitted that on a number of occasions between December 2005 and December 2009, they caused Cbsi to transfer more than $21.656 million into bank accounts in the name of a consulting firm they controlled. Both defendants used some of this money to pay personal expenses and moved other amounts in approximately equal portions into other accounts they controlled individually. As a result, they each obtained approximately $10.828 million. In 2008, Martorano and Sefton equally divided an additional $641,975 that paid for a “muscle car” for Sefton. Neither defendant disclosed the receipt of any of this money to their individual tax return preparer.
The government was represented by Assistant U.S. Attorneys Kaarina Salovaara and Joseph Stewart.
Two Drug Traffickers Sentenced in Operation "no Quarter"Read the Press Release
RALEIGH and new bern – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced CHRISTINA MONIQUE CAPERS , 30, of Bellflower, California, to 84 months imprisonment, followed by 5 years of supervised release. Mr. Walker also announced that today in federal court, United States District Judge Louise W. Flanagan sentenced DEVON MARQUE THOMAS, 26, of Greenville, North Carolina, to 132 months imprisonment, followed by 5 years of supervised release.
CAPERS was named in an Indictment filed on July 10, 2012, charging her with conspiracy to distribute and possession with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. On October 29, 2012, CAPERS pled guilty to the conspiracy charge.
On June 22, 2012, investigators arrested CAPERS in Greenville, North Carolina, after investigators located 4.151 kilograms of methamphetamine in the door panels of the car she was driving. The investigation revealed that CAPERS transported the methamphetamine from Los Angeles, California, to Greenville. The co-defendants in the case were sentenced by Chief Judge Dever on June 10, 2013. ISMAEL PARRILL, 32, of Long Beach, California received a 180-month sentence, LUIS GUTIERREZ PARRILLA, 46, of Houston, Texas, received a 162-month sentence, and HUMBERTO GARCIA, 26, of San Pedro, California, received a 100-month sentence.
THOMAS was named in an Indictment filed on April 10, 2012, charging him with conspiracy to distribute 5 kilograms of more of cocaine and a quantity of heroin, as well as related distribution and possession with intent to distribute cocaine and heroin counts.
Between August 2010 and March 29, 2012, the Pitt County Sheriff’s Office Narcotics Unit used informants to make 5 controlled purchases of cocaine and heroin from THOMAS. THOMAS was arrested twice in March and April of 2011 after being found in possession of cocaine during traffic stops. The investigation revealed that from 2008 until March 2012 THOMAS was responsible for distributing over 33 kilograms of cocaine, 28 grams of crack cocaine, almost 1 kilogram of marijuana and 3 grams of heroin.
The Organized Crime Drug Enforcement Task Force (OCDETF) Operation "No Quarter" was designed to attack the infrastructure of the Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These DTO's are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation spanned ten years and five North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. Law enforcement officials seized drugs with a street value of $4.6 million, including 127 kilograms of cocaine, 53 pounds of crystal methamphetamine, 160 pounds of marijuana, and 32 grams of heroin. Additionally, $2.2 million in U.S. Currency, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.
The investigations of cases in Operation “No Quarter” were conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico; the Internal Revenue Service - Criminal Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshals Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) - Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff's Office; the Pamlico County Sheriff's Office; the Lenoir County Sheriff's Office; the Craven County Sheriff's Office; the Carteret County Sheriff's Office; the Beaufort County Sheriff's Office; the New Bern Police Department, the Wayne County Sheriff's Office; the Person County Sheriff's Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff's Office, and the Wilson Police Department.
The federal prosecutions were handled by Special Assistant United States Attorneys Glenn Perry and Augustus Willis, IV. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Mr. Willis is a prosecutor with the Carteret, Craven and Pamlico Counties District Attorney’s Office. District Attorneys Kimberly Robb and Scott Thomas have assigned Mr. Perry and Mr. Willis to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their assignments to the United States Attorney’s Office have been made possible by grants funded by the Governor’s Crime Commission.
Toledo Man Indicted on Child Pornography ChargeRead the Press Release
An indictment was filed charging Bryan Lorann, age 29, of Toledo, with receipt and possession of child pornography between May 20, 2011 and February 23, 2012, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Department of Homeland Security, Immigration and Customs Enforcement, Cleveland, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Men Found Guilty of First-Degree Murder While Armed and Other Charges for Killing A Man During 2009 Robbery-Second Victim Was Shot and Wounded-Read the Press Release
WASHINGTON – Paul Ashby, 50, Keith Logan, 51, and Merle Watson, Jr., 56, all of Washington, D.C., were found guilty by a jury today of first-degree murder while armed and other charges for killing a man during a kidnapping and robbery. Logan also was found guilty of shooting a potential witness the same night, U.S. Attorney Ronald C. Machen Jr. announced.
The verdict followed several weeks of trial in the Superior Court of the District of Columbia. All three defendants were found guilty of first-degree murder while armed, with aggravating circumstances, conspiracy, kidnapping while armed, armed robbery, and weapons offenses. Logan also was found guilty of assault with intent to kill while armed, aggravated assault while armed, and mayhem while armed, for the attack on the potential witness.
The Honorable Herbert B. Dixon, Jr. is to sentence the defendants on Oct. 9, 2013. They face mandatory minimums of 30 years in prison and potential sentences of life in prison.
According to the government’s evidence, Ashby, Logan and Watson conspired to kidnap and rob Carnell Bolden, 36. They lured Mr. Bolden into Logan’s residence in the unit block of W Street NW during the early evening hours of Dec. 30, 2009. After beating him unconscious and tying him up, the defendants then went to get Mr. Bolden’s car, which was parked on the block.
Ashby, Logan and Watson then discovered that Mr. Bolden’s girlfriend was sitting in the car. Fearing she would be a witness against them because she might know where Mr. Bolden was going when he left the car, they then decided to kill both of them.
Ashby drove Mr. Bolden, tied up and unconscious, to the 3000 block of Park Drive SE, where he dragged him into a wooded area adjacent to that block. He then shot Mr. Bolden twice at close range with a .38 or .357-caliber handgun, killing him.
While Ashby was on the way to Southeast Washington with Mr. Bolden, Logan approached Mr. Bolden’s girlfriend as she sat in her car. He stood outside the driver’s window and shot her four times with a nine-millimeter handgun. She was rushed to Washington Hospital Center and survived the attack.
In announcing the verdicts, U.S. Attorney Machen expressed appreciation to those who investigated the case from the Metropolitan Police Department (MPD), the District of Columbia Department of Forensic Sciences, and the FBI Laboratory in Quantico, Va.
He also thanked those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates and Specialists Marcia Rinker, La June Thames, Katina Adams-Washington, and Michael Hailey; Paralegal Specialists Sandra Lane, Kendra Johnson, Kwasi Fields, Anthony Griffith, and Antoinette Sakamsa; Litigation Technology Specialists Paul Howell, William Henderson, and Anisha Bhatia; Law Clerks Lauren Sparks and Ryan Lipes, and Criminal Investigator Derek Starliper. In addition, he acknowledged the work of Assistant U.S. Attorneys Alessio Evangelista, who led the grand jury investigation, and Reagan Taylor, who helped prepare the case for trial. Finally, he commended the work of Assistant U.S. Attorneys Michael C. Liebman and Erik Kenerson, who tried the case.
13-279Three Indicted on Drug Charges Related to Theft of Prescription Drugs at Benton PharmacyRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, William J. Bryant, Assistant Special Agent in Charge of the Drug Enforcement Administration's Little Rock District Office (DEA), and Kirk R. Lane, Chief of Police for the Benton Police Department (BPD), announced that a two-count Indictment was issued today charging William Franklin Thompson, age 34, of Traskwood; James Jubilee Owens, age 38, of Bismarck; and Joseph Louis Thurlow, age 23, of Hot Springs with drug crimes related to the theft of more than 25,000 pills from a Benton pharmacy in January 2013.
Count 1 charges Thompson, Owens, and Thurlow with conspiracy to possess with intent to distribute and to distribute Schedule II controlled substances, including Oxycodone, Oxymorphone, Morphine, Hydromorphone, Meperidine, Methadone, Methylphenadate, Dextroamphetamine, Tapentadol, and Lisdexamphetamine dimesylate. Count 2 charges the same men with aiding and abetting one another to possess Oxycodone with intent to distribute.
"Although they may have initially thought they were able to pull off this theft, due to quick action by the Benton Police Department this robbery was ultimately unsuccessful," said Thyer. "These men will now be facing up to twenty years in prison."
Bryant stated, "Prescription drug abuse is the fastest growing illicit drug problem our state faces. It plagues our streets with violence and touches every level of society. The Benton Police Department did an excellent job investigating this case, and we appreciate our partnership with them so that we can continue to address the prescription drug problem on a federal level."
Chief Lane added, "This case was resolved by great investigative work and law enforcement partnerships that in turn, will keep our citizens safe. We are proud to be a part of the team."
The charges result from a burglary on January 30, 2013 at the Westside Pharmacy in Benton, Arkansas which was investigated by the BPD. According to BPD reports, Thurlow gained entry to the pharmacy through an adjacent business which shared ceiling space with the pharmacy. After getting inside the business, Thurlow gained access to the pharmacy above the ceiling and by breaking a hole in the sheet rock firewall separating the two businesses. He then maneuvered above the drop ceiling along the roof rafters until coming upon the Schedule II closet in the pharmacy. A motion detector linked to the pharmacy's alarm system was disabled by Thurlow with assistance via walkie-talkie from Owens. Thurlow then climbed into the closet from the ceiling undetected. More than 25,000 pills were placed into a large duffle bag, and Thurlow climbed back through the ceiling with the pills and returned to the point of entry through the adjacent business. Both Owens and Thompson were stationed in separate vehicles outside the pharmacy with walkie-talkies.
According to BPD reports, after the burglary, the drugs were taken to a Hot Springs home where they were repackaged for distribution by the defendants. The pills were then relocated to Owens' residence in Bismarck where they were stored, and were later seized by Benton Police detectives. Detectives also discovered burned debris in a firepit behind Owens' residence consistent with the original packaging for the drugs.
Both counts of the Indictment carry punishment of not more than 20 years imprisonment with a possible fine of up to $1,000,000, and at least 3 years of supervised release.
Thompson, Owens, and Thurlow are currently not in custody. They will be summoned to appear in federal court before a United States Magistrate Judge later this month.
The investigation was conducted by the Drug Enforcement Administration Little Rock Office and the Benton Police Department. It is being prosecuted by Assistant United States Attorneys Tricia Harris and Jamie Dempsey.
An indictment contains only allegations. The defendant is presumed innocent unless and until proven guilty.
Three Defendants Sentenced for String of Armed Bank RobberiesRead the Press Release
ATLANTA - Torrey Marable and two codefendants, Rico Blackwell and Jason Blackwell, were sentenced today to federal prison for armed bank robbery.
“These men terrorized bank employees when they entered the banks they robbed with guns drawn,” said U.S. Attorney Sally Quillian Yates. “Serious violent crimes should be met with serious prison sentences, such as those imposed in this case, to protect our communities.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s sentencing ends a violent crime spree and removes four dangerous individuals from our streets. The FBI commends the many law enforcement officers and agents that worked hard in this matter but the contributions made by those observant and responsive officers of the Austell Police Department who conducted the car stop on these individuals after a bank casing there is particularly noteworthy and commendable.”According to United States Attorney Yates, the charges and other information presented in court: Beginning on August 9, 2012, and continuing until his arrest on September 5, 2012, Torrey Marable robbed banks located in Atlanta, Dunwoody, and Marietta, Ga. Deandre Markee King and Rico Blackwell joined Marable in the Dunwoody robbery, during which all three men brandished their guns and used them to move the tellers into the vault and force them to hand over more than $71,000.
On September 4, 2012, Marable and King canvassed another bank in Austell, Ga., forming their plan to rob the bank. On September 5, 2012, Jason Blackwell drove Marable, King and his half-brother Rico Blackwell, near a PNC Bank in Austell. At the same time, law enforcement was on the lookout for a car matching the description of the one Jason Blackwell was driving. They were also looking for a man with dreadlocks, which was the style of Marable’s hair. Before the robbery occurred, Austell police pulled the car Jason Blackwell was driving over, finding Marable, King and Rico Blackwell all with semi-automatic handguns within their reach. Police also found two surgical masks, two bandanas and latex gloves in the car.
Marable, 21, of Decatur, Ga., was sentenced by United States District Judge Evans to 27 years in prison to be followed by 5 years of supervised release. Marable was ordered to pay restitution in the amount of $89,644. He was convicted of these charges on April 4, 2013, upon his plea of guilty.
Rico Blackwell, 22, of Decatur, Ga., received 138 months in prison and was ordered to pay restitution in the amount of $71,668; and Jason Blackwell, 32, of Decatur, Ga., received 84 months in prison. These prison sentences will be followed with 3 years of supervised release. Deandre Markee King, 28, of Decatur, Ga. will be sentenced on August 28, 2013.
This case was investigated by the Federal Bureau of Investigation with assistance from the Cobb County Police Department and the Austell Police Department.Assistant United States Attorney Susan Coppedge prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Texas U.S. Attorneys Meet to Discuss Human TraffickingRead the Press Release
Districts to Build on Local Successes to Develop and Implement Statewide Anti-Human Trafficking Strategy
DALLAS — The four U.S. Attorneys in Texas, John Malcolm Bales of the Eastern District, Sarah R. Saldaña of the Northern District, Kenneth Magidson of the Southern District and Robert L. Pitman of the Western District, met yesterday in the U.S. Attorney’s office in Dallas to discuss anti-human trafficking initiatives in their districts and explore implementing a statewide anti-human trafficking strategy.
“Involuntary servitude and other forms of human abuse are an anathema to the American way of life and must be met with all the fervor and creativity that we can muster,” said U.S. Attorney Bales. “I am very pleased to join forces with our sister districts.”
“The Northern District is fully engaged, with our federal, state and local law enforcement partners, and our colleagues in governmental and non-governmental organizations, in preventing and fighting human trafficking in all its detestable forms,” said U.S. Attorney Saldaña. “While our commitment has never been stronger and we are encouraged by many recent achievements in this fight, we can always do more. By partnering with the other federal judicial districts in Texas we can maximize the effectiveness of our joint efforts in prevention and advance high-impact human trafficking prosecutions.”
“The Southern District of Texas has had tremendous success through leadership of our longstanding Human Trafficking Rescue Alliance, which partners with a variety of federal, state and local agencies and has served as a model to other districts,” said U.S. Attorney Magidson. “This is an issue that doesn't just affect us, but the entire state and nation. We hope to continue our efforts, to share ideas, to identify areas of improvement and ensure all the work in Texas is consistent and continues to be an example to the nation in this significant law enforcement arena.”
“Because of Texas’ extensive border with Mexico, we are on the front lines in the effort to combat human trafficking,” said U.S. Attorney Pitman. “It’s shocking to realize that human trafficking persists in our communities in the form of child exploitation, forced prostitution and involuntary servitude. As United States Attorneys in Texas, we are determined to re-focus our efforts to identify and rescue victims, as well as to prosecute and hold accountable those responsible for these inhumane crimes.”
The U.S. Attorneys met with Nick Sensley, the Anti-Trafficking Strategist for Humanity United (HU), a foundation committed to building peace and advancing human freedom. Mr. Sensley is a key player in HU’s efforts to guide states in developing statewide anti-trafficking strategies that use collaborative, innovative efforts to identify and stop traffickers and help victims heal and rebuild their lives. Members of the North Texas Anti-Trafficking Team’s Executive Board joined the meeting for further discussion.
The Justice Department’s commitment to preventing human trafficking, bringing traffickers to justice and assisting victims has never been stronger. While the Department’s work has sent a clear and critical message that human trafficking crimes will not be tolerated, there is still much to be done. This meeting constitutes another step in the fight against modern day slavery.
Texas Man Sentenced to Prison for Federal Cocaine Trafficking ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Texas man was sentenced today by Senior United States District Judge Edwin M. Kosik to serve 48 months in prison on the charge of conspiracy to distribute cocaine.
According to United States Attorney Peter J. Smith, Jhonny Pichardo, age 51, formerly of Coppell, Texas, previously admitted to participating in a drug-trafficking conspiracy which obtained cocaine in Texas and distributed the cocaine in the Monroe County and Northampton County areas in 2011.
In addition to the prison term, Senior Judge Kosik also ordered that Pichardo be supervised by a probation officer for four years following his prison sentence.
The investigation was conducted by the Drug Enforcement Administration, the Stroud Area Regional Police Department and the Internal Revenue Service, Criminal Investigations.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
South Dakota Man Sentenced for Robbing Arden Hills and Bloomington BanksRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 45-year-old South Dakota man was sentenced for robbing two Twin Cities’ banks during the first week of 2012 and one North Dakota bank in December 2011. United States District Judge David S. Doty sentenced William Roy St. John, of Sisseton, South Dakota, to 188 months in prison on three counts of bank robbery. On April 3, 2012, St. John was indicted in connection with the Minnesota robberies, and on May 2, 2012, he was indicted for the North Dakota robbery. On December 5, 2012, St. John pleaded guilty to all three robberies.
In his plea agreement, St. John admitted that on January 2, 2012, he stole approximately $3,810 from the US Bank on Lyndale Avenue South in Bloomington; on January 4, 2012, he stole approximately $5,520 from the Wells Fargo Bank on County Road E in Arden Hills; and on December 31, 2011, he stole approximately $2,107 from the Bank of the West in Fargo, North Dakota.
Surveillance images from the two Minnesota banks indicated that the suspect was the same man. As part of a law enforcement investigation into those crimes, authorities executed a state search warrant at a Minneapolis apartment on January 5, 2012. Among other things, they recovered clothing similar to that worn by the robber.
On January 7, 2012, authorities arrested St. John in Bloomington. In addition to being charged federally with bank robbery, St. John was charged in Hennepin County District Court with attempted home invasion as well as attempted carjacking, kidnapping, and auto theft, all of which were unrelated to the bank robberies. St. John has since been convicted of those state charges, and he remains in state custody.
This federal bank robbery case was the result of an investigation by the Federal Bureau of Investigation, the U.S. Marshals Service, the Bloomington Police Department, and the Ramsey County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Andrew Dunne.Seth Patrick Durnam Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on July 31, 2013, before U.S. District Judge Donald W. Molloy, SETH PATRICK DURNAM, a resident of Bozeman, was sentenced to a term of:
Prison: 52 months
Special Assessment: $100
Supervised Release: 10 years
DURNAM was sentenced in connection with his guilty plea to possession of child pornography.
In an Offer of Proof filed by Assistant U.S. Attorney Tara J. Elliott, the government stated it would have proved at trial the following:
On November 8, 2010, DURNAM was at a residence in Bozeman for a job interview.
On Saturday, November 13, 2010, the homeowner found a 2GB SD card in his driveway. The homeowner called his father who had visited earlier in the day to inquire if the card was his. His father replied that it was not and suggested that he view the images on the card to identify the owner. He did so and found hundreds of images of child pornography, that he described as "naked, under-age boys." When scrolling through the images, the homeowner found a picture of DURNAM, whom he recognized from the earlier job interview. The homeowner contacted law enforcement and turned over the card.
When interviewed by a detective the next day, DURNAM admitted that he "did like images of younger boys" but claimed it was earlier in his life. When the SD card was examined, approximately 300 sexually explicit images and 5 movies of nude prepubescent and early teen boys were found on the card. The images had been copied to the SD card on April 21, 2010, by means of another device. There were also several pictures of DURNAM on the card.
DURNAM possessed images and movies of children clearly prepubescent and children engaged in sadistic or masochistic abuse or other depictions of violence.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that DURNAM will likely serve all of the time imposed by the court. In the federal system, DURNAM does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Gallatin County Sheriff's Office.
San Francisco Investment Adviser Sentenced to 56 Months for Fraud SchemeRead the Press Release
SAN FRANCISCO - Hausmann-Alain Banet (a/k/a Anzoumana Ousmann Gbane, a/k/a Gbane Anzoumana a/k/a Ousmann Gbane, a/k/a Ousmann Gbane Anzounan Banet, a/k/a Ousmann-Alain Gbane) of San Francisco, California, was sentenced yesterday to 56 months in prison and ordered to pay $1.2 million in restitution for defrauding former investment clients, United States Attorney Melinda Haag announced.
Banet pleaded guilty on May 21, 2013, to wire fraud and mail fraud. According to the Plea Agreement, from approximately June 2008 through July 2012 Banet induced numerous individuals to give him money by falsely representing that he, on behalf of his investment management company, Lion Capital Management Group, LLC, would invest the money in hedge funds. Instead, Banet spent the money for personal and business expenses, all unrelated to investment income. As part of his scheme, Banet sent quarterly investment account statements to victims in which he falsely stated that the funds had been invested and that the accounts had realized gains. At sentencing, the Court also found that Banet had attempted to obstruct a related civil investigation by making false statements to the Securities and Exchange Commission.
Banet, 50, was originally indicted by a federal grand jury on October 2, 2012. He was charged with six counts of wire fraud, eleven counts of mail fraud, and six counts of money laundering. Under the Plea Agreement, Banet pleaded guilty to two counts of wire fraud and two counts of mail fraud. Banet has been in custody since approximately January 3, 2013.
The sentence was handed down by The Honorable William H. Alsup, U.S. District Court Judge. Judge Alsup also sentenced the defendant to a 3 year period of supervised release and ordered forfeiture of Banet’s interest in his San Francisco condominium, bank and trading accounts totaling approximately $78,000, and his Mercedes Benz.
Denise Marie Barton is the Assistant United States Attorney who is prosecuting the case with the assistance of Allen Williams, Pat Mahoney, and Elizabeth Garcia. The prosecution is the result of an approximately five month investigation by the Federal Bureau of Investigation, with the assistance of the San Francisco Office of the Securities and Exchange Commission and Immigration and Customs Enforcement.
Rosebud Man Charged with Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that Kameron Jackson, age 20, of Rosebud, South Dakota, appeared before U.S. District Judge Roberto A. Lange on July 30, 2013, and pled guilty to Abusive Sexual Contact.
The maximum penalty upon conviction is 2 years in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on January 4, 2013, when Jackson had sexual contact with the victim.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Tim Maher.
A presentence investigation was ordered and a sentencing date was set for October 7, 2013. The defendant must self-report to the custody of the U.S. Marshals on September 24, 2013.Rochester Man is Sentenced in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y.-- United States Attorney William J. Hochul, Jr. announced today Paul Hearty, 37, of Rochester, New York, was sentenced to 10 years in prison and 15 years of supervised release by United States District Judge Frank P. Geraci, Jr., after pleading guilty to a one count felony information charging him with knowing possession of child pornography.
Assistant U.S. Attorney Tiffany H. Lee, who handled the prosecution for the Government, stated that in December 2010, New York State Police's Internet Crimes Against Children Task Force received information that an AOL user was sending child pornography to an account used by a particular Internet Protocol address. The subscriber of the Internet Protocol address was identified as Hearty, residing at Alexander Street, in the City of Rochester. New York State Police executed a search warrant in April 2011 and images of child pornography were found on Hearty's Samsung smart phone.
In 2005, Hearty was convicted in Monroe County of the Possession of an Obscene Sexual Performance By A Child Less Than 16 Years Old. Following his conviction, Hearty was required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.The sentence was the culmination of an investigation on the part of the United States Homeland Security Investigations under the direction of Special Agent in Charge James Spero, the New York State Police Computer Crimes Unit under the direction of Captain Frank Pace and the Monroe County District Attorney's Office under the direction of Sandra Doorley.
Porcupine Woman Indicted and Arraigned on Four Counts of Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine, South Dakota, woman was indicted by a federal grand jury on four counts of Sexual Abuse of a Minor.
Ardis Good Shot, age 39, was indicted on July 23, 2013. She appeared before U.S. Magistrate Judge Veronica L. Duffy on July 29, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction on each count is 15 years of imprisonment and a $250,000 fine. The charge is merely an accusation and Good Shot is presumed innocent until and unless proven guilty.
The investigation is being conducted by Bureau of Indian Affairs Office of Justice Services. Special Assistant U.S. Attorney Laura A. Shattuck is prosecuting the case.
Good Shot was released on bond pending trial. A trial date has not been set.Phenix City Man Sentenced for Drug Trafficking and Weapons PossessionRead the Press Release
Montgomery, Alabama - Shedrick D. Hollis, 40, of Phenix City, was sentenced yesterday to 35 years in prison for drug trafficking and weapons possession charges, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama.
On March 14, 2013, Hollis was convicted of possession with the intent to distribute cocaine powder, crack cocaine, BZP (a club drug similar to Ecstasy) and marijuana, and of possession of firearms in furtherance of his drug trafficking activity. United States District Judge W. Keith Watkins sentenced Hollis to a term of 30 years in prison for his conviction of possession with intent to distribute cocaine powder, crack cocaine, BZP and marijuana. Judge Watkins further ordered that Hollis be imprisoned for an additional 5 years imprisonment for possession of firearms in furtherance of his drug trafficking activity.
Testimony at trial established that in late February, 2011, the United States Marshal’s Gulf Coast Regional Fugitive Task Force (GCRFT) received a request to assist in locating and arresting Hollis for violations of his parole out of Georgia. Law enforcement learned that Hollis was in a rented vehicle which was located at a residence in Phenix City, Alabama. On March 1, 2011, the GCRFT went to the residence, saw the rented car, identified themselves as law enforcement, and knocked on the door. Officers saw Hollis through a window beside the front door and ordered Hollis to open the door. When Hollis did not open the door, the front door of the residence was breached and Hollis was arrested.
After the arrest, officers conducted a protective sweep of the residence to insure that no one else was present in the house to endanger the officers’ safety. During the protective sweep, officers located a loaded shotgun and rifle, as well as a plastic bag containing a large amount of marijuana and scales. Officers then obtained a search warrant in order to conduct a complete search of the residence. During the search, officers located a large amount of cocaine powder, bags of crack cocaine, bags of pills which were later determined to be BZP, bags of marijuana, scales containing cocaine and marijuana residue, and $5,000 in cash.
“This sentence shows that drugs dealers who spread their poison to members of this community will be severely punished,” stated U.S. Attorney Beck. “My office will continue to do all we can under the law to rid our communities of these toxic substances. Also, when you combine drug dealing with firearms, you get a particularly dangerous situation that we will continue to work tirelessly to stop.”
“The combined efforts of law enforcement agencies and the United States Attorney’s Office in the Middle District of Alabama have removed an armed drug trafficker from our community,” stated Clay Morris, Assistant Special Agent in Charge of the Drug Enforcement Administration for Alabama. “This investigation and subsequent sentencing of Hollis will send a clear message to the criminal elements that your actions will not be tolerated.”
The case was investigated by the Drug Enforcement Administration, and the Metro Narcotics Task Force, with the aid of the Russell County Sheriff’s Department, the Phenix City Police, the United States Marshal’s Service and the Gulf Coast Regional Fugitive Task Force.
The case was prosecuted by Assistant United States Attorneys Susan R. Redmond and Jared Morris.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Petersburg Man Sentenced to Eleven Years for Methamphetamine and Cocaine TraffickingRead the Press Release
RICHMOND, Va. – Torry Little, of Petersburg, Va., was sentenced today to 132 months in prison for possession with the intent to distribute 5 grams or more of methamphetamine and 500 grams or more of cocaine hydrochloride.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration (DEA)’s Washington Division, made the announcement after sentencing by United States District Judge James Spencer.
Little pleaded guiltyon May 9, 2013. According to court documents, Little sold cocaine to a confidential informant on two separate occasions. Later, officers executed a search warrant on Little’s residence and recovered 39 grams of an unusually high-purity form of methamphetamine, 1003 grams of cocaine hydrochloride, $13,218 in United States currency, and a .380 caliber handgun.
This case was investigated by the Drug Enforcement Administration and the Virginia State Police Central Virginia Regional Narcotics Task Force. Assistant United States Attorney Erik S. Siebert prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Parmalee Man Charged with Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmalee, South Dakota, man was indicted by a federal grand jury for engaging in a sexual act with a woman who was unable to give permission.
Patrick Left Hand Bull, age 40, was indicted on July 23, 2013, for Abusive Sexual Contact. He appeared before U.S. Magistrate Judge Veronica L. Duffy on July 31, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is 3 years’ imprisonment and/or a $250,000 fine. The charge is merely an accusation and Left Hand Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Sarah Collins is prosecuting the case.
Left Hand Bull was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.Parmalee Man Charged with Failure to RegisterRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmalee, South Dakota, man was indicted by a federal grand jury for not updating his sexual offender registration as required.
Wolf Guts was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Richard Wolf Guts, age 28, was indicted on July 23, 2013, for Failure to Register as a Sex Offender. He appeared before U.S. Magistrate Judge Veronica L. Duffy on August 2, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is 10 years’ imprisonment and/or a $250,000 fine. The charge is merely an accusation and Wolf Guts is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.Owner of Addison Seafood Company Sentenced and Fined $100,000 in Federal Court for Mislabeling Frozen Fish and ShrimpRead the Press Release
CHICAGO — The owner of an Addison seafood distributor received a maximum $100,000 fine and was sentenced to five years’ federal probation, with the first six months in home confinement, for mislabeling certain products by substituting cheaper fish for more expensive fish and misstating the weight of shrimp to charge customers more for a lesser quantity. The defendant, PATRICK A. BRUNO, president and owner of Gourmet Express Marketing, Inc., was sentenced after he pleaded guilty in April to a misdemeanor violation of the Federal Food, Drug, and Cosmetic Act.
Bruno, 71, of Addison, must pay the costs of electronic monitoring during home confinement. U.S. Magistrate Judge Sheila Finnegan, who imposed the sentence yesterday in Federal Court in Chicago, also ordered Bruno to obey the terms of a civil consent decree as a condition of his probation. That decree, which Bruno and Gourmet Express entered in April and settled a parallel civil lawsuit filed by the government, permanently enjoins any future violations. Bruno admitted that he mislabeled and sold swai as “catfish,” and perch as “red snapper” or “pacific snapper,” and also misstated the weight of ice-glazed shrimp.
The mislabeling has not resulted in any known illnesses or danger to public health, officials said.
In pleading guilty in the criminal case, Bruno admitted that between 2007 and 2010, he knew that seafood he sold was mislabeled and that the packages of frozen shrimp overstated the weight of that ice-glazed product. The civil consent decree, which lasts at least five years, enjoins him and his company from committing any future violations, requires the hiring of an independent expert at the company’s expense to ensure compliance with the agreement and federal laws, and provides for civil damages of $5,000 a day and $10,000 for each shipment in the event violations occur.
The sentence was announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Scott MacIntire, district director of the FDA’s Chicago District Office, and John Redmond, Acting Special Agent-in-Charge of the FDA’s Office of Criminal Investigations.
According to court documents, Gourmet Express purchases, processes and repacks frozen seafood and sells its products to retailers and wholesalers in Illinois and other states. The Food and Drug Administration issued a warning letter to Bruno and Gourmet Express in February 2010 after inspections in 2009 found that they misrepresented the weight of frozen shrimp after adding an ice glaze to the products, and mislabeled perch as “red snapper,” or “pacific snapper.” A subsequent inspection in March and April 2010 documented continuing and additional violations.
The FDA tested samples of Bruno and Gourmet Express’s frozen cooked shrimp during some inspections in 2009 and 2010 to evaluate the net weight stated on the product labels. The tests revealed that the actual weight of the products was at various times, respectively, 21.5 and 14.4 percent under the labeled weight. The FDA conducted DNA testing to determine the true species of the fish.
The government was represented by Assistant U.S. Attorneys Kaarina Salovaara and Donald Lorenzen.
Orlando Man Pleads Guilty to Distribution and Possession of Child PornographyRead the Press Release
Orlando, Florida - Acting United States Attorney A. Lee Bentley, III announces that Jeffrey Alan Barnett (46, Orlando) today pleaded guilty to three counts of distribution of child pornography and one count of possession of child pornography. Barnett faces a mandatory minimum of not less than 5 years, up to 20 years in federal prison for each distribution count, and a maximum penalty of up to 10 years in federal prison for the possession count. Sentencing has been set for December 19, 2013. Barnett was indicted on April 17, 2013.
According to court documents, Barnett used a peer-to-peer filing sharing program to distribute child pornography to an undercover federal task force agent on three separate occasions. On March 21, 2013, a federal search warrant was executed at Barnett’s residence. During the execution of that search warrant, investigators found a computer located in Barnett’s bedroom that contained child pornography. Barnett was interviewed and admitted, among other things, that the computer belonged to him and that he had been using a peer-to-peer file sharing program to download and trade child pornography. He was arrested on the same date.
This case was investigated by the Federal Bureau of Investigation and the Seminole County Sheriff's Office. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
It is another case 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.
Operator of Sports Merchandise Company Sentenced to 3 Years in Prison for Running Fraud SchemeRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County, Pa., has been sentenced in federal court to serve 37 months imprisonment, to be followed by three years supervised release, and ordered to pay restitution in the amount of $601,470.31, on his conviction of mail fraud, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Andrew A. Demasi, 63, of Natrona Heights, Pa.
According to information presented to the court, Demasi and his partner, Ronald Halpern, operated a business known as A & R Services, Inc., from an apartment at Washington Place, Pittsburgh, Pa. On behalf of A & R Services, Demasi and Halpern negotiated the purchase, sale, and delivery of sports-related merchandise and novelty items. During the period April 2007 through September 2007, Demasi and Halpern devised and executed a scheme to defraud manufacturers, wholesale distributors, and interstate shipping companies of money and property, valued at more than $600,000. The fraud scheme included obtaining merchandise for resale by applying for extensions of credit from the various manufacturers, wholesalers, and shipping companies based on false, financial information provided by Demasi.
On Aug. 3, 2007, Demasi and Halpern, in executing the scheme, obtained merchandise, delivered by interstate carrier FedEx, from Pro Specialities Group, Inc., in San Diego, California, based upon credit extended upon materially false financial information about the financial health and history of A & R Services, Inc. Demasi and Halpern had no intention of paying for the merchandise or its shipment after receipt.
Ronald Halpern entered a guilty plea before Judge Arthur Schwab and was sentenced in May 2013 to serve a 24-month term of imprisonment.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Office of the United States Trustee for the investigation leading to the successful prosecution of Demasi.
Oglala Woman Guilty of Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that Elizabeth Red Star-Benson, age 27, of Oglala, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy on August 2, 2013, and pled guilty to a charge of Involuntary Manslaughter.
The maximum penalty upon conviction is 8 years’ imprisonment and/or a $250,000 fine.
On August 31, 2012, Red Star-Benson was driving under the influence, with a blood alcohol content of .261, and rolled her vehicle on BIA Hwy 27 near KILI radio station in Porcupine. Her four-year old son, who was not properly restrained, was ejected from the vehicle and died at the scene from his traumatic injuries.
The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and the South Dakota Highway Patrol. The case is being prosecuted by Assistant U.S. Attorney Sarah Collins.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.North Dakota Man Charged with Aggravated Sexual Abuse of A Minor and Abusive Sexual Contact of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Yates, North Dakota, man has been indicted by a federal grand jury.
Cecil White Bull, age 40, was indicted on July 17, 2013, on two counts of Aggravated Sexual Abuse of a Minor and two counts of Abusive Sexual Contact of a Minor. White Bull appeared before U.S. Magistrate Judge William D. Gerdes on July 25, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction of the sexual abuse charges is a mandatory minimum of 30 years up to life imprisonment. The maximum penalty upon conviction of the sexual contact charges is any term of years up to life imprisonment. All counts include a $250,000 fine, 5 years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and White Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case. White Bull was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.Nixa Man Pleads Guilty to Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Nixa, Mo., man pleaded guilty in federal court today to receiving and distributing child pornography over the Internet.
Charles Williams, 28, of Nixa, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in an Aug. 28, 2012, federal indictment.
By pleading guilty today, Williams admitted that he used peer-to-peer file-sharing program on two laptop computers to download and distribute dozens of videos and photos of child pornography over the Internet from April 9 to Sept. 27, 2011.
According to today’s plea agreement, a Nixa police officer used a peer-to-peer file-sharing program to connect to Williams’ computer over the Internet. The officer located child pornography on the computer and obtained a search warrant for Williams’ residence. Officers executed the search warrant on Sept. 27, 2011, and seized two laptop computers, two cameras, two videogame consoles, 115 CDs/DVDs and a VHS tape. Among the files discovered on one of the laptop computers was a video of a 4-to-5-year-old child being raped by an adult. Williams was arrested on Sept. 27, 2011.
Investigators conducted an examination of Williams’ computers and found 52 incomplete or partially downloaded videos of child pornography, 29 saved videos of child pornography, eight videos of child pornography in the recycle bin and 13 images of child pornography.
Under federal statutes, Williams is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the FBI and the Nixa, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources." . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."New Haven Man Pleads Guilty to Role in Crack Distribution RingRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MUJAHID MUHAMMED, also known as “Doughboy,” 28, of New Haven, pleaded guilty before Chief United States District Judge Alvin W. Thompson in Hartford to one count of conspiracy to possess with intent to distribute 280 grams or more of cocaine base (“crack cocaine”).
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force into drug distribution and related gang activity in The Hill neighborhood of New Haven. The investigation, which included the use of court-authorized wiretaps, revealed that MUHAMMED regularly obtained large quantities of crack cocaine from sources in New York City, and that he and other members and associates of the Southside Bloods street gang distributed the drug in the New Haven area.
Chief Judge Thompson has scheduled sentencing for October 30, 2013, at which time MUHAMMED faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Six of the 10 individuals charged as a result of the result of the investigation have pleaded guilty. As to the four defendants who are awaiting trial, Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter has been investigated by the FBI’s New Haven Safe Streets Task Force, including the New Haven, Hamden and Milford Police Departments, and the State of Connecticut Department of Correction. The case is being prosecuted by Assistant United States Attorneys Anthony Kaplan and Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]New Canaan Man Admits Involvement in Organized Crime-controlled Gambling RingRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOSEPH BOREA, 56, of New Canaan, pleaded guilty today before United States District Judge Vanessa L. Bryant in Hartford to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations (RICO) Act stemming from his involvement in organized-crime controlled gambling businesses.
According to court documents and statements made in court, after a long-term investigation led by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation and the Stamford Police Department, BOREA, Dean DePreta, Richard Uva and 17 other individuals were charged with various offenses related to their involvement in an illegal Internet sports bookmaking operation and illegal card gambling clubs. As part of the conspiracy, DePreta and Uva were involved in the collection and payment of “tribute” payments to Gambino organized crime family associates in New York.
The investigation, which included the use of court-authorized wiretaps, revealed that DePreta operated a large-scale sports bookmaking business in which gamblers placed bets with offshore Internet sports-gambling websites, particularly www.44wager.com based in Costa Rica. Uva served as the “master agent” for the bookmaking operation.
In addition, DePreta, Uva and others operated card gambling clubs in Stamford and Hamden where a house percentage, commonly referred to as a “rake,” was collected from every hand played.
BOREA collected gambling debts for DePreta and Uva.
Judge Bryant has scheduled sentencing for October 30, 2013, at which time BOREA faces a maximum term of imprisonment of 20 years. He also has agreed to forfeit $75,000.
BOREA has been released on bond since his arrest on June 13, 2013.
DePreta and Uva have pleaded guilty and await sentencing.
FBI analysis of the sports-betting web site utilized by the co-defendants has determined that the total gross revenues of the Stamford-based gambling operation were nearly $1.7 million from October 2010 to June 2011.
To date, the defendants who have pleaded guilty have agreed to forfeit a total of more than $1.4 million.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. This case is being prosecuted by Assistant United States Attorneys Hal Chen and Peter Jongbloed.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Nevada Man Pleads Guilty to $2 Million Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an Nevada, Mo., man has pleaded guilty in federal court to his role in a $2 million scheme to defraud Cargill, Inc. by creating fictitious scale tickets for loads of corn that were paid for but never actually delivered to the company’s Butterfield, Mo., feed mill.
Bob True Beisly, III, 39, of Nevada, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush on Tuesday, Aug. 6, 2013, to one count of wire fraud and one count of mail fraud.
In a separate but related case, Jeffrey Hobbs, 41, of Exeter, pleaded guilty on May 20, 2013, to wire fraud. Hobbs worked as a scale operator and pellet mill operator at Cargill’s Butterfield feed mill from December 1999 until March 2013. When a delivery truck would arrive at the feed mill, Hobbs was responsible for weighing each truck and its contents. Once the truck was weighed, Hobbs created a scale ticket for the company that delivered the grain, corn or feed. A copy of the scale ticket was sent to Cargill’s headquarters in Minneapolis, Minn., for processing and payment to the trucking company.
Beisly and other individuals approached Hobbs in 2002 about creating fictitious scale tickets for non-delivered loads of corn as a way to make money and ultimately defraud Cargill. Hobbs began creating completely fictitious scale tickets for Beisly and others for the delivery of loads of grain, corn or feed that did not truly exist.
Beisly owned and operated K&B Grain. Beisly obtained contracts with Cargill for the delivery of a set number of grain loads that were supposed to deliver grain, corn or another type of product to the Butterfield feed mill. Beisly admitted that he received numerous fictitious scale tickets from Hobbs for deliveries that were never actually made. Beisly also admitted that at least once a week he received a fictitious scale ticket from Hobbs that claimed he had delivered a shipment of grain to the Butterfield feed mill, when in truth and fact, no such shipment or delivery was made. Shortly after the fictitious scale tickets were created by Hobbs, Beisly received a payment from Cargill.
Hobbs initially received $300 in kickbacks for each “ghost load,” which was later increased to $500 in cash for each “ghost load.”
Cargill officials discovered the fraud when the amount of grain, corn or feed that was being paid for was inconsistent with the amount they actually received. Over a span of nine years, this fraud scheme caused losses to Cargill of approximately $2 million. According to today’s plea agreement, Cargill’s losses associated with Beisly totaled approximately $559,616. Under the terms of his plea agreement, Beisly must pay a money judgment for that amount to the government.
Under federal statutes, Beisly is subject to a sentence of up to 40 years in federal prison without parole, plus a fine up to $500,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Missouri State Highway Patrol.
Mission Man Charged and Sentenced for Assault by Striking, Beating and WoundingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man charged with Assault by Striking, Beating and Wounding has pled guilty to the charges and was sentenced on August 5, 2013, by U.S. Magistrate Judge Mark A. Moreno.
Frank Swalley Jr., age 29, was sentenced to 3 months in custody with credit for time served, and $10 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on October 1, 2011, when Swalley and others assaulted and beat the victim, which included Swalley grabbing the victim by the neck.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher. Swalley was released from custody.Milpitas Man Pleads Guilty to Illegal SF Bay Shark Sale SchemeRead the Press Release
SAN FRANCISCO - Dean Trinh pleaded guilty in federal court in San Francisco today to Conspiracy, Lacey Act violations, and Wire Fraud, for his involvement in the illegal capture and sale of California leopard sharks and nurse sharks, United States Attorney Melinda Haag announced.
In pleading guilty, Mr. Trinh admitted to taking undersized California leopard sharks from the San Francisco Bay and selling them to customers in Canada and Florida, through his business, AquatopUSA LLC, High Tech Auctions and Hightechauction.com. Trinh also admitted that he conspired to transport, sell, receive, acquire, and purchase illegally collected nurse shark pups over the internet, knowing that they were taken, possessed, transported, sold, and intended to be sold in violation of the laws and regulations of the State of Florida.
Trinh, 43, of Milpitas, California, was indicted by a federal Grand Jury on May 23, 2013, in the Northern District of California, with three counts of violating the Lacey Act, in violation of 16 U.S.C. § 3372(a)(2)(A) and § 3372(a)(4), and nine counts of Wire Fraud, in violation of 18 U.S.C. § 1343. On November 1, 2012, in the Southern District of Florida, Trinh was charged with one count of Conspiracy in violation of 18 U.S.C. § 371. Under the plea agreement, Mr. Trinh pled guilty to all counts in both cases.
The sentencing of Mr. Trinh is scheduled for November 12, 2013, before The Honorable Richard Seeborg, United States District Court, Judge in San Francisco. The maximum statutory penalty for each count in violation of the Lacey Act, 16 U.S.C. §§ 3372(a)(2)(A), 3372(a)(4), is 5 years imprisonment, 3 years supervised release, a fine of $250,000, plus restitution; for each count of Wire Fraud, 18 U.S.C. § 1343, the maximum penalty is 20 years imprisonment, three years supervised release, a $250,000 fine, plus restitution. The statutory maximum penalty for Conspiracy in violation of 18 U.S.C. § 371 is 5 years imprisonment, 3 years supervised release, a $250,000 fine, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Maureen Bessette and Thomas Watts-FitzGerald (from the U.S. Attorney’s Office for the Southern District of Florida) are the Assistant U.S. Attorneys prosecuting the case with the assistance of supervisory legal technician Kathleen Turner. The prosecution is the result of a three year investigation by the U.S. Fish & Wildlife Service.
Mexican National Residing in Valencia County Sentenced to 135 Months in Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Hector Manuel Lopez-Valle, 24, was sentenced yesterday to 135 months in federal prison for his methamphetamine trafficking conviction. Two co-defendants previously were sentenced to federal prison terms. Adaucto Chavez-Meza, 20, was sentenced last month to 135 months in federal prison for his methamphetamine trafficking conviction, and Jesus Omar Lopez-Valle, 28, was sentenced in June 2013 to 210 months in federal prison for his methamphetamine trafficking and firearms conviction.
Chavez-Meza, Jesus Lopez-Valle and Hector Manuel Lopez-Valle, all Mexican nationals, were arrested on methamphetamine trafficking charges on March 1, 2012. At the time, the three men were illegally present in the United States and living in Valencia County, N.M. They will be deported after completing their prison sentences.
According to court filings, from Feb. 21, 2012 to March 1, 2012, Jesus Lopez-Valle and Hector Lopez-Valle conspired with Chavez-Meza to sell four pounds of methamphetamine to an individual who, unbeknownst to them, was an undercover officer. The men were arrested in Albuquerque on March 1st, after they displayed more than four pounds of methamphetamine to the undercover officer. During a post-arrest interview, Chavez-Meza admitted that they intended to sell the methamphetamine to the undercover officer for approximately $60,000. Jesus Lopez-Valle also admitted that the three men intended to sell the methamphetamine to the undercover officer, and Hector Lopez-Valle admitted to transporting the methamphetamine from Belen to Albuquerque.
Chavez-Meza pleaded guilty on Feb. 25, 2013, to an indictment charging him with conspiracy and possession of methamphetamine with intent to distribute. Jesus Lopez-Valle and Hector Lopez-Valle each pleaded guilty on March 1, 2013, to a superseding indictment charging them with conspiracy and possession of methamphetamine with intent to distribute. Jesus Lopez-Valle also pleaded guilty to being an illegal alien in possession of firearms. All three men entered their guilty pleas without the benefit of plea agreements.
The case was prosecuted by Assistant U.S. Attorneys Samuel A. Hurtado and Nicholas J. Ganjei and was investigated by the Cross Border Drug Violence Squad of the Albuquerque Division of the FBI and the Las Cruces/Doña Ana County Metro Narcotics Agency.
Members of White Supremacist Group Sentenced to Prison for Hate Crime AssaultRead the Press Release
TRENTON, N.J. – Two members of the “Aryan Terror Brigade” white supremacist group were sentenced to prison today for their roles in the New Year’s Eve 2011 hate crime assault of two Middle Eastern men in Sayreville, N.J., U.S. Attorney Paul J. Fishman announced.
U.S. District Judge Joel A. Pisano sentenced Michal Gunar, 29, of East Windsor, N.J., to 33 months in prison. Gunar previously pleaded guilty to an indictment charging him with conspiracy to commit a hate crime assault, as well as the actual commission of a hate crime assault, in violation of the Matthew Shepard and James Byrd Jr., Hate Crimes Prevention Act. Judge Pisano sentenced Kyle Powell, 24, of West Collingswood, N.J., to 15 months in prison. Powell previously pleaded guilty to an information charging him with conspiracy to commit a hate crime assault.
According to documents filed in this case and statements made in Trenton federal court: Gunar admitted attended a New Year’s Eve “meet and greet” white supremacist event at a residence in East Brunswick, N.J., on Dec. 31, 2011. That night, Gunar, Powell and Christopher Ising, 31, of Waretown, N.J., drove to an apartment complex in Sayreville with the express purpose of assaulting random, non-Caucasian individuals. Gunar brandished a knife and attacked two Middle Eastern men, shouting anti-Arab slurs. At his guilty plea proceeding, Gunar admitted he assaulted at least one man by pulling the individual out of a parked car and punching the man about the face and head, causing physical injury.
Ising, a purported member of a white supremacist group known as the “Atlantic City Skins,” previously entered a guilty plea on both counts of the same indictment and charges as Gunar. He is scheduled to be sentenced on Aug. 9, 2013.
In addition to the prison terms, Judge Pisano sentenced Gunar and Powell to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola, Criminal Investigations, Newark Field Office; and detectives from the N.J. State Attorney General’s Office, under the direction of Acting Attorney General John Jay Hoffman, with the investigation.The government is represented by Assistant U.S. Attorneys Dennis C. Carletta of the U.S. Attorney’s Office National Security Unit in Newark, and Trial Attorney Fara Gold of the Criminal Section of the Justice Department’s Civil Rights Division in Washington.
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Member of International Narcotics Trafficking Conspiracy Sentenced in Manhattan Federal Court to 66 Months in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that FRANCIS SOUROU AHISSOU, 48, a citizen of Togo, was sentenced today in Manhattan federal court to 66 months in prison for participating in a conspiracy to import narcotics into the United States. AHISSOU was arrested in Monrovia, Liberia, in coordination with Liberian authorities in February 2011 and transferred thereafter to the custody of the United States. He pled guilty in May 2013 before U.S. District Judge Naomi Reice Buchwald, who imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara stated: “Francis Ahissou was all too eager to sell cocaine to purported associates of the Taliban who planned to distribute it in the United States. Today's sentence is the latest result of this Office’s campaign to hold narco-traffickers to account and destroy these dangerous drug rings.”
According to the Indictment and Complaint previously unsealed in this case, as well as statements made during court proceedings:
Beginning in the summer of 2010, AHISSOU and some of his co-defendants (the “co-defendants”) communicated with confidential sources (“CSs”) working with the DEA, who purported to represent the Taliban. The communications occurred by telephone, via e-mail, and in a series of audio-recorded and videotaped meetings over several months.
During meetings with the CSs beginning in June 2010 in West Africa, AHISSOU and his co-defendants agreed to sell multi-kilogram quantities of cocaine to the Taliban understanding that portions of the cocaine would be transported to the United States by commercial airline and then sold in this country for a profit. AHISSOU also helped arrange the sale of an approximately 800-gram sample of cocaine to the CSs in October 2010.
In addition to the prison term, AHISSOU was ordered to pay a $100 special assessment.
The charges against AHISSOU were the result of the coordinated efforts of the U.S. Attorney’s Office for the Southern District of New York and the DEA’s Special Operations Division, as well as the DEA Lagos Country Office, the DEA Warsaw Country Office, the DEA Ghana Country Office, the DEA Athens Country Office, and the DEA SECI (South East European Cooperative Initiative Regional Center for Combating Transborder Crime). Mr. Bharara praised the outstanding investigative work of the DEA and thanked the U.S. Department of Justice Office of International Affairs and National Security Division, the U.S. Department of State, and the U.S. Immigration and Customs Enforcement for their assistance. Mr. Bharara also thanked the Government of Liberia for its cooperation.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Christian Everdell, Aimee Hector, and Glen Kopp are in charge of the prosecution.
McLaughlin Woman Charged with LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, woman has been indicted by a federal grand jury.
Tabitha Good House, age 26, was indicted on July 17, 2013, on one count of Larceny.
The maximum penalty upon conviction is 5 years' custody, a $250,000 fine or both; a period of supervised release of 3 years; and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Good House is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Good House was released with conditions. A trial date has not been set.Maple Plain Man Indicted for Defrauding Mortgage Loan LendersRead the Press Release
MINNEAPOLIS—A federal indictment unsealed late yesterday charges a 38-year-old Maple Plain man with conspiring to defraud mortgage loan lenders. The indictment, which was filed on July 16, 2013, specifically charges Alpha Rashidi Mshihiri with one count of conspiracy to commit bank fraud, three counts of bank fraud, two counts of wire fraud, one count of mail fraud, and one count of money laundering conspiracy. The indictment was unsealed following the Mshihiri’s initial appearance in federal court.
The indictment alleges that from June 2006 through January 2009, Mshihiri conspired with others to defraud and obtain money from mortgage lenders by means of false and fraudulent representations. Mshihiri operated Pristine Home Loans and allegedly recruited straw buyers to purchase residential real estate properties. The straw buyers submitted fraudulent loan applications to the mortgage lenders and, in some instances, used the stolen identity others in their applications.
In support of the false loan applications, Mshihiri purportedly created false documents, such as false W-2s and fraudulent paystubs and driver’s licenses, which the straw buyers then submitted to the mortgage lenders. In some instances, the proceeds of the loans were allegedly used to pay existing mortgages, financially benefiting Mshihiri and his un-named co-conspirators. In other situations, proceeds were purportedly paid as kickbacks to the straw buyers. Every property purchased through the scheme has gone into foreclosure, resulting in substantial losses to the victim lenders.
If convicted, Mshihiri faces a potential maximum penalty of 30 years on each count. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Minnesota Financial Crimes Task Force, the Internal Revenue Service-Criminal Investigations, the United States Secret Service and the U.S. Department of Housing and Urban Development-Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Lola Velazquez-Aguilu.
The Financial Crimes Task Force was established pursuant to state law and is comprised of local, state, and federal law enforcement investigators dedicated to combating the growing problem of cross-jurisdictional financial crimes. The task force, overseen by an advisory board also created under state law, serves the entire District of Minnesota, presenting its cases to county or federal prosecutors, as appropriate.
The U.S. Attorney’s Office wants to remind people to protect themselves from mortgage fraud. For more information, visit http://www.stopfraud.gov/protect-mortgage.html.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.