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Friday 21 June 2013
Former Enron CEO Jeffrey Skilling <br /> Resentenced to 168 Months for Fraud, Conspiracy ChargesRead the Press Release
Former Enron Chief Executive Officer Jeffrey K. Skilling has been resentenced to 168 months in prison on conspiracy, securities fraud, and other charges related to the collapse of Enron Corporation. In addition to the prison sentence, Skilling, 59, was ordered to forfeit approximately $42 million to be applied toward restitution for the victims of the fraud at Enron.
Acting Assistant Attorney General Mythili Raman of the Criminal Division made the announcement after Skilling was resentenced before U.S. District Judge Sim Lake at the U.S. District Court in Houston.
“The sentence handed down today ends years of litigation, imposes significant punishment upon the defendant and precludes him from ever challenging his conviction or sentence,” said Acting Assistant Attorney General Raman. “With today’s court action, victims of Skilling’s crimes will finally receive more than $40 million that he owes them. We appreciate the hard work and dedication of all the prosecutors and agents who have handled this important case from the initial investigation to today’s successful conclusion.”
A federal jury found Skilling guilty in Houston on May 25, 2006, of one count of conspiracy, 12 counts of securities fraud, one count of insider trading, and five counts of making false statements to auditors. Judge Lake initially sentenced Skilling to serve 292 months of imprisonment on Oct. 23, 2006. On Jan. 6, 2009, the United States Court of Appeals for the Fifth Circuit affirmed Skilling’s convictions but vacated his sentence and remanded for a new sentencing hearing. The court of appeals concluded that the district court erred by increasing Skilling’s sentence for having substantially jeopardized the safety and soundness of a financial institution – that is, Enron’s pension plan. As a result, the court of appeals effectively reduced Skilling’s guidelines range of imprisonment by approximately nine years.
In May 2013, the government and Skilling entered into an agreement to recommend jointly to the district court a sentence between 168 months and 210 months of imprisonment, a limited reduction in Skilling’s guidelines range of imprisonment in exchange for Skilling agreeing, among other things, not to contest the original forfeiture and restitution order and to waive all appeals and other litigation. As court documents make clear, the government entered into this agreement, in part, to bring finality to Skilling’s convictions and thereby allow the government to promptly seek the distribution of approximately $42 million to victims of Skilling’s crimes.
Skilling’s convictions stemmed from a scheme to deceive the investing public, the U.S. Securities and Exchange Commission, and others about the true performance of Enron’s businesses. The scheme was designed to make it appear that Enron was growing at a healthy and predictable rate, consistent with analysts’ published expectations, that Enron did not have significant write-offs or debt and was worthy of an investment-grade credit rating, that Enron was comprised of a number of successful business units, and that the company had an appropriate cash flow. This scheme had the effect of artificially inflating Enron’s stock price, which increased from approximately $30 per share in early 1998 to over $80 per share in January 2001, and artificially stemming the decline of the stock during the first three quarters of 2001.
The fraud scheme eventually unraveled and Enron filed for bankruptcy in December 2001, making its stock virtually worthless.
The investigation into Enron’s collapse was conducted by the Enron Task Force, a team of federal prosecutors supervised by the Justice Department’s Criminal Division, and Special Agents from the FBI and IRS Criminal Investigation. The Task Force received considerable assistance from the Securities and Exchange Commission. The resentencing hearing was handled by Patrick Stokes, Albert Stieglitz and Robert Heberle of the Criminal Division’s Fraud Section.
Former Elementary School Teacher Sentenced to 120 Months in Prison for Child PornographyRead the Press Release
ALEXANDRIA, Va. – Robert Fenn, 27, of Herndon, Va., was sentenced today to 120 months in prison, followed by 20 years of supervised release, for receipt and possession of child pornography. Prior to his June 2012 arrest on related, local charges, Fenn was a special education teacher at Poplar Tree Elementary School in Chantilly, Va.
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.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington, D.C.; and Lt. Colonel Edwin C. Roessler, Jr., Acting Fairfax County Chief of Police, made the announcement after sentencing by United States District Judge James C. Cacheris.
“We vigorously investigate and prosecute all those who commit child pornography offenses,” said U.S. Attorney Neil H. MacBride. “This is especially so when those same criminals have been entrusted with the care of our children. The defendant will now have the next ten years to consider the consequences of his actions.”
On April 3, 2013, a federal jury returned a verdict of guilty against Fenn for one count of receipt of child pornography and one count of possession of child pornography. According to court records and evidence adduced at trial, Fenn was identified through an international initiative originated with Italian law enforcement that investigated a website offering access to child pornographic images and/or video files identified by the domain name “liberalmorality.com.” The website was hosted in the United States and HSI obtained internet records showing each internet account that accessed the website and the specific images each account accessed.
Fenn taught special education at Poplar Tree Elementary School in Chantilly, Va. and gave private music lessons to children in their homes. Fenn admitted an interest in girls between the ages of nine and 14, which corresponded to the ages of the victims of child pornography depicted in images and videos found on Fenn’s computers and external hard drives.
This case was investigated by HSI’s Child Exploitation Section in the Washington Field Office and the Fairfax County Police Department. Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division, and Assistant United States Attorneys Lindsay Kelly and Jay Prabhu are prosecuting the case on behalf of the United States.
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.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”Former Army Soldier Sentenced for Murder-for-Hire and Gun PossessionRead the Press Release
LAREDO, Texas – A fourth man charged in relation to a murder-for-hire conspiracy has been handed a significant federal sentence, United States Attorney Kenneth Magidson announced today. Samuel Walker, 29, of Sharon, Miss., was convicted in November 2012 along with Calvin Epps, following a seven-day trial.
Today, Senior United Sates District Court Judge George P. Kazen sentenced Walker to respective sentences of 120 and 60 months for conspiracy to commit murder for hire and for possessing a firearm during in and in relation to a crime of violence. Following his 15-year sentence, he will be on supervised release for five years.
According to the evidence presented at trial, the investigation began in January 2011 when co-defendant Marcus Mickle, 21, of Columbia, S.C., began negotiations with persons whom he thought were members of the Los Zetas Cartel, actually undercover Drug Enforcement Administration (DEA) agents, to purchase marijuana in return for stolen weapons. According to the testimony of DEA agents, the discussions concerned the distribution of marijuana in the Columbia area and how Mickle and co-defendant Calvin Epps, 29, of Hopkins, S.C., told undercover agents about a friend in the military who could provide military weapons to them. The agents were later introduced to co-defendant Kevin Corley, 30, of Columbia, who identified himself as an active duty officer in the Army responsible for training soldiers. According to the agents’ testimony, Corley offered to provide tactical training for cartel members and to purchase weapons for the cartel.
Over the next several months, Corley continued to communicate with undercover agents regarding the services he could provide the cartel as a result of the training, experience and access to information/equipment afforded him as an active duty soldier.
On Jan. 7, 2012, Corley traveled to Laredo and met with undercover agents. During this meeting, he stated that he could raid a ranch located at or near Laredo containing 20 kilograms of cocaine and conduct a contract killing there. Corley stated he would need to bring his own team and agreed to the raid and killing for a $50,000 fee and five kilograms of cocaine.
During March 2012, Corley allegedly arranged for 300 pounds of marijuana to be delivered to Mario Corley, 41, of Saginaw, Texas, in Charleston, S.C. Kevin Corley also assisted in brokering 500 pounds of marijuana and five kilograms of cocaine for Mickle and Epps and discussed with agents the distribution of these narcotics in South Carolina, Texas and Colorado.
Agents testified that on March 5, 2012, Kevin Corley delivered two AR-15 assault rifles with scopes, an airsoft assault rifle, five allegedly stolen ballistic vests and other miscellaneous equipment to an undercover agent in Colorado Springs, Colo., in exchange for $10,000. At the meeting, Kevin Corley and the undercover agent again discussed the contract killing and the retrieval of the cocaine which was to occur on March 24, 2012. Kevin Corley stated he had purchased a new Ka-Bar knife to carve a “Z” into the victim’s chest and was planning on buying a hatchet to dismember the body. Evidence at trial demonstrated how Kevin Corley told agents he had discussed the plan with Walker and that Walker was going to be a part of the team that would come to Texas to commit the murder for hire. The jury also heard evidence that he and Walker had gone to the rifle range and test-fired Walker’s scoped rifle.
On March 24, 2012, Kevin Corley, Walker and Shavar Davis, 30, of Denver, Colo., traveled to Laredo and met with undercover agents, at which time they discussed the location of the intended victim, the logistics of performing the contract kill and their respective roles.
During the trial, the jury heard about this meeting and that Walker contended he could hit the intended victim from more than two football fields away with his rifle. Agents testified that immediately thereafter, the three were arrested and a fourth suspect was shot and killed. A subsequent search of the vehicle in which Corley and the other co-conspirators arrived revealed two semi-automatic rifles with scopes, one .300 Caliber Weatherby Magnum bolt-action rifle with a scope and bipod, one hatchet, one Ka-Bar knife, one bag of .223 caliber ammunition and one box of .300 caliber ammunition.
During trial, Kevin Corley testified that the .300 caliber Weatherby Magnum rifle and ammunition belonged to Walker and that Walker was supposed to take the long-distance shot at the intended victim with this weapon. Walker also testified and admitted that rifle was his but claimed he came to Laredo, not to kill anyone, but to train clients for security purposes that Kevin Corley had met in Laredo.
Both Kevin Corley and Walker testified that they served in the Army together and were deployed to Afghanistan. Walker was a Sergeant at the time and served for a time in Kevin Corley’s infantry platoon. Walker and Kevin Corley returned to Fort Carson, Colo., after their deployment to Afghanistan in the summer of 2011.
Mickle was sentenced last week, also to 15 years, while Davis received a sentence of 10 years in federal prison. Robert Corley, who pleaded guilty to the marijuana conspiracy, was previously sentenced to 30 months in prison. The remaining co-defendants - Kevin Corley, Calvin Epps and Mario Corley - have not yet been scheduled for sentencing.
The investigation leading to the charges was conducted by the DEA and the FBI with the assistance of U.S. Army Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorneys Roberto Ramirez and Jody Young.
Florida Businessman Sentenced in Manhattan Federal Court to 11 Years in Prison in Connection with $13 Million Fraud Scheme Involving Phony Facebook and Groupon StockRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JOHN A. MATTERA was sentenced in Manhattan federal court to 11 years in prison for his role in a $13 million scheme to defraud investors through false ownership claims of stock in Facebook, Inc. (“Facebook”) and Groupon, Inc. (“Groupon”) before their initial public offerings, and in other private companies. MATTERA pled guilty to securities fraud and wire fraud charges in October 2012, and he agreed to pay restitution to the victims of his offense and consented to the entry of a $13 million forfeiture order. MATTERA was sentenced today by U.S. District Judge Richard J. Sullivan.
Manhattan U.S. Attorney Preet Bharara stated: “John Mattera enjoyed a lavish lifestyle, funded by approximately $13 million he procured from investors with false promises of profit from high-profile stocks. He then took millions for dollars for himself. Today’s sentence ensures he will pay a substantial price for his fraud.”
According to the charging instruments filed in this case and statements made during court proceedings:
In 2010 and 2011, MATTERA served as Chairman of the Advisory Board of Praetorian Global Fund Ltd. (“Praetorian”), a professional mutual fund, where he was responsible for the day-to-day management decisions. Beginning in the late summer of 2010, MATTERA and others offered investors the opportunity to invest in special purpose entities related to Praetorian (the “G Power Entities”). MATTERA falsely represented that the G Power Entities owned shares in companies such as Facebook and Groupon when they were still private. Ownership of stock in these private companies was particularly attractive to certain investors because, as MATTERA and others communicated, there was an expectation that initial public offerings would soon occur, thereby potentially increasing the value of the shares. In reality, neither MATTERA, Praetorian, nor the G Power Entities held these shares of stock.
Based on the misrepresentations of MATTERA and others, investors sent more than $11 million into “escrow accounts” maintained at a Florida bank. MATTERA reassured investors that their money would be held in the escrow accounts until either the offering was completed or another triggering event took place. Investors were told they would then receive their ownership interest in the particular special purpose entity. However, instead of maintaining the investor money in the escrow accounts as MATTERA promised, MATTERA caused the vast majority of the funds to be transferred to other entities with which he was associated. Ultimately, MATTERA misappropriated approximately $13 million of investor money, spending nearly $4 million on personal items for himself and his family, such as expensive jewelry, interior decorating, and luxury cars.
In addition to the prison term, Judge Sullivan sentenced MATTERA, 51, of Boca Raton, Florida, to three years of supervised release. MATTERA was also ordered to forfeit $11.8 million and pay restitution to be determined, as well as a $400 special assessment fee.
Mr. Bharara praised the work of the Criminal Investigators of the United States Attorney’s Office and the Internal Revenue Service, Criminal Investigation, which jointly investigated this case. He also thanked the U.S. Securities and Exchange Commission.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. 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.
Assistant United States Attorneys Eugene Ingoglia, David Miller, and Paul Monteloni are in charge of the prosecution.
Five Individuals Indicted and Arrested for Conspiracy to Smuggle Goods into the United States and Money LaunderingRead the Press Release
SAN JUAN, P.R. – Yesterday, a Federal grand jury returned a three-count indictment against five individuals and three companies for conspiracy to smuggle goods into the United States, and conspiracy to commit money laundering, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The investigation was conducted by the Immigration and Customs Enforcement (ICE) Department of Homeland Security (HIS) and Customs and Border Patrol (CBP) Import Specialist Branch.
According to the indictment, the defendants knowingly and willfully combined, conspired, confederated, and agreed with each other to smuggle and clandestinely introduce, or attempt to smuggle or clandestinely introduce, merchandise imported from China, to wit: aluminum, by passing false and fraudulent invoices and documents through a CBP customhouse with the intent to defraud the United States of approximately $26.7 million in lawful antidumping and countervailing duties accruing upon said merchandise.
The defendants and entities are:
- Samuel García-Adarme - the owner of Sultana Screens & Aluminum Sales and Vice President of Aluwest Industries;
- Edrick García -Vàzquez - the President of PRP Trading Corp;
- Armando García-Vàzquez - the Vice President of PRP Trading and the Chief Financial Officer of Sultana Screens & Aluminum Sales;
- Carlos Minguela-Ortiz - the accountant for Sultana Screens & Aluminum Sales and PRP Trading;
- William Tang Piu Wong - the owner of AGI Trading Corporation, facilitated the importation of Chinese manufactured goods into United States commerce;
- Sultana Screens & Aluminum Sales - located in Mayagüez, and two additional locations in Caguas and Ponce, P.R., imported aluminum and manufacturing related products for sale;
- PRP Trading Corp. - located in Arecibo, P.R., imported aluminum; and
- Aluwest Industries - located in Ponce, P.R., manufactured aluminum products.
The object of the conspiracy was that defendants Samuel García-Adarme, Edrick García-Vàzquez, Armando García-Vàzquez and Carlos Minguela-Ortiz, owners and/or principals of Sultana Screens & Aluminum Sales, PRP Trading, and Aluwest Industries, with the assistance of William Tang Piu Wong, would purchase aluminum from China, transship the aluminum to Malaysia, repackage the aluminum and create false invoices to make it appear as though the aluminum originated in Malaysia, and then import the aluminum into Puerto Rico in order to avoid payment of the antidumping and countervailing duties (ADD/CVD).
ADD and CVD are additional duties imposed on goods entering into U.S. commerce for consumption. The imposition of ADD/CVD is a prerogative of the U.S. Department of Commerce (DOC) to avoid imported merchandise being sold below fair market value. Since November 2010, the Department of Commerce imposed antidumping and countervailing duties on Chinese-origin aluminum, which ranged from 30 - 33% of the declared value of the imported aluminum, and 374.15% of the declared value of the imported aluminum, respectively.
Count two of the indictment charges defendants Edrick and Armando García-Vàzquez, Minguela Ortiz and Wong, along with the three companies, with conspiracy to commit wire fraud. The defendants, having devised a scheme or artifice to defraud the United States by means of false and fraudulent pretenses did cause to be transmitted by means of wire communications in interstate and foreign commerce electronic mailings for the purpose of executing such scheme or artifice.
Count three charges all defendants with conspiracy to commit money laundering. They conspired to transfer and attempted to transfer funds, that is $6,907,985.43 in United States currency from Puerto Rico to Malaysia, with the intent to promote the carrying on of a specified unlawful activity, which was smuggling goods into the United States.
The forfeiture allegations include a money judgment of $26,758,437.86 for the unpaid ADD/CVD and a money judgment of $6,907, 985.43 for the money laundering count. The government seeks to forfeit real estate properties and bank accounts as substitute assets.
“These individuals are charged with defrauding the United States government of tens of millions of dollars in lawfully imposed duties,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “We will continue to investigate and prosecute those who engage in corrupt acts which directly affect fair market competition in imported goods” stated Rodríguez-Vélez.“The ICE HSI Anti-Dumping and Countervailing Duties (ADD/CVD) Program is one way that HSI protects U.S. businesses from fraudulent trade practices. ADD/CVD orders are issued by the Department of Commerce (DOC) and collected and distributed by CBP. Antidumping duties are assessed when importers sell merchandise at less than fair market value, which causes material injury to a domestic industry producing a comparable product. The United States can also impose countervailing duties to offset foreign government subsidy payments on exports of foreign businesses. Duties are imposed to offset the dumping or subsidies provided by the foreign country in order to maintain the competitiveness of United States industry and to foster a level business playing field,” said Ángel Meléndez, special agent in charge of HSI San Juan. “HSI is responsible for investigating importers who evade the payment of ADD/CVD on imported merchandise. ADD/CVD cases are long-term, transnational investigations that require significant coordination between domestic and international offices and with our foreign law enforcement counterparts.”
“CBP is responsible for enforcing the antidumping and countervailing duties (AD/CVD) law and collecting the ADD/CVD duties assessed against applicable imports. Importers who willfully circumvent the provisions of the ADD/CVD law through illegal transshipment, undervaluation or misclassification of merchandise in order to avoid paying these duties will be identified and investigated,” said Marcelino Borges, Director of Field Operations for Puerto Rico and the USVI. “Our officers and trade experts remain vigilant to detect these violators and enforce all trade related laws.”
The case is being prosecuted by Senior Litigation Counsel, Assistant United States Attorney Scott Anderson. If found guilty, the defendants could face a possible sentence of twenty (20) years in prison.
Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.Fifteen-year Sentence for Jefferson County Man Who Received Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Ryan D. Kasler, 31, of Mt. Pleasant, Ohio was sentenced to 15 years in prison for downloading images of child pornography from the internet.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Dugan T. Wong, Inspector in Charge, U.S. Postal Inspection Service and William A. Hayes, acting special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan, announced the sentence imposed today by Senior U.S. District Judge James Graham.
Kasler pleaded guilty on March 14, 2013 to one count of illegal receipt of child pornography. According to testimony presented during the plea hearing, Kasler was identified during an investigation by Postal Inspectors into subjects who received child pornography through the U.S. Mail. Investigation of a company that was suspected of distributing child pornography indicated that Kasler had purchases 17 separate videos or photo collections of child pornography, which he had downloaded or received through the mail.
Investigators executed a search warrant at Kasler’s home in December 2012 and seized videos, a computer and storage media containing child pornography. Agents arrested Kasler, who has been in custody since his arrest.
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/.
Stewart commended the cooperative investigation by Postal Inspectors and HSI agents, as well as Assistant U.S. Attorney Heather Hill, who is representing the United States in this case.
Farmers Branch Man Arrested and Charged with Armed Bank RobberyRead the Press Release
FBI Says Luis Delagarza is the “Mesh Mask Bandit”
DALLAS — Luis Delagarza, 59, of Farmers Branch, Texas, has been arrested and charged in a federal criminal complaint with committing the armed bank robbery of a Wells Fargo Bank in Dallas in April 2013. This afternoon, Delagarza made his initial appearance in federal court before U.S. Magistrate Judge Irma C. Ramirez, who ordered that he remain in federal custody. A preliminary hearing and motion to detain the defendant will be conducted on Tuesday, June 25, 2013. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas and Diego Rodriguez, Special Agent in Charge for the FBI Dallas Division.
“The identification of the ‘Mesh Mask Bandit’ by the FBI’s Bank Robbery Task Force was the result of collaborative local and federal investigation across nine cities,” said Diego G. Rodriguez, Special Agent in Charge of the FBI Dallas Field Division. “The arrest of this dangerous individual illustrates the effectiveness of task forces, the support provided by the U.S. Attorney’s Office and cooperation within the law enforcement community.”
According to the complaint and affidavit filed in the case, on April 22, 2013, the FBI was notified that the Wells Fargo Bank, located at 13297 Josey Lane, in Farmers Branch, had been robbed by a Hispanic male wearing a disguise and armed with a handgun. When law enforcement arrived at the bank, a special agent with the FBI interviewed a witness who worked in the bank. The witness advised that he/she was at his/her desk when he/she observed a Hispanic male walk past a window, adjacent to his/her desk, and head toward the Bank’s main entrance. The witness advised that as the man was entering the bank he/she saw him pull down a mask to cover his face. The witness further noted that as the man entered the bank and approached the bank tellers, he pointed a handgun at them and demanded money. As the bank tellers were scared for their well-being, they complied with the robber’s demands. The witness stated that as the robber was leaving the bank, he removed his mask, and again, this witness saw the robber’s face. This witness later positively identified Delagarza in a photo line-up.
The investigation is being conducted by the FBI and the Farmers Branch Police Department. Assistant U.S. Attorney Taly Haffar is in charge of the prosecution.
Drug Dealing Armed Career Criminal SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced the sentencing of Timothy McNeal, 31, of Moultrie, Georgia, today before the Honorable Hugh Lawson, Senior United States District Judge in Macon, Georgia.
On March 5, 2013, after a two-day trial, a jury convicted Mr. McNeal of Possession with Intent to Distribute Cocaine Base (“crack” cocaine), Possession with Intent to Distribute Marijuana, and Possession of a Firearm by a Convicted Felon.
Court records reveal that Mr. McNeal was determined to be both a Career Offender under the United States Sentencing Guidelines and an Armed Career Criminal under federal law.
The case developed when agents learned through complaints and interviews that Mr. McNeal was selling illegal drugs from his residence. A search warrant was executed at the residence which revealed quantities of crack cocaine and marijuana, which were packaged and ready for distribution. In addition to the illegal drugs, a Hi-Point 9mm pistol and ammunition was also discovered in the residence.
Judge Lawson sentenced Mr. McNeal to two hundred sixty-two months imprisonment to be served consecutively to an existing State of Georgia sentence on a separate crime, followed by six years of supervised release.
“The federal sentencing guidelines have special provisions to substantially increase sentences for repeat offenders such as Timothy McNeal. As with all federal sentences, this sentence will be served without parole. Being a consecutive sentence, Mr. McNeal will not even begin serving this lengthy federal incarceration until he has served the full remaining time on his current sentence with the State of Georgia. It is extremely unlikely that he will ever again have the opportunity to sell illegal drugs in this community or anywhere else,” said United States Attorney Michael Moore.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Colquitt County Sheriff’s Office, and the Colquitt County Drug Enforcement Team. The case was prosecuted by Assistant United States Attorneys Peter D. Leary and Robert McCullers.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Documentary Promotes Awareness of Gun and Gang ViolenceRead the Press Release
BOSTON – The Office of United States Attorney Carmen M. Ortiz has partnered with Stop Handgun Violence, Inc. to produce a 30-minute television documentary entitled “Hitting Home” which will air on WBZ-TV on June 23 at 2:00 pm and on myTV38 (WSBK) on June 26 at 10:30 pm.
The objective of “Hitting Home” is to raise awareness about the impact of gun and gang violence on residents in the areas where these problems are most prevalent. Additionally, the film encourages people to engage with local anti-violence community programs.
“Hitting Home” focuses on the cities of Boston and Springfield, providing a forum for people who have been affected by gun and gang violence in those cities. The film demonstrates what it is really like to live with these issues every day. The documentary further describes several effective grass-roots community groups making inroads of positive change in their neighborhoods.
“While the components of our mission include enforcing the law and providing leadership to prevent crime, it’s important for people to realize that we need them to be a part of the solution and work together with us and local law enforcement to improve the quality of life in our cities,” said United States Attorney Carmen M. Ortiz.
The documentary was developed as the result collaboration between CBS’s Community Partnerships division and the U.S. Attorney’s Project Safe Neighborhoods program, together with its media partner, Stop Handgun Violence. Boston’s WBZ-TV and sister-station myTV38 are part of CBS Television Stations, a division of CBS Corporation.
District Man Sentenced to 27 Years in Prison for Slaying of Northeast Washington Deli Owner-DNA Linked the Defendant to the Crime Scene-Read the Press Release
WASHINGTON – Steven Williams, 47, of Washington, D.C., was sentenced today to 27 years in prison for the June 2012 slaying of Hae Soon Lim, the owner of a Northeast Washington delicatessen, announced U.S. Attorney Ronald C. Machen Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Williams pled guilty to a charge of second-degree murder while armed in April 2013 in the Superior Court of the District of Columbia. He was sentenced by the Honorable Robert E. Morin. Upon completion of his prison term, Williams will be placed on five years of supervised release.
According to the government’s evidence, Ms. Lim, 64, was found by police on June 14, 2012, at about 6:15 a.m., on the floor of her delicatessen, Grace’s Deli, in the 700 block of H Street NE. Her vehicle was found parked directly outside. An autopsy determined that Ms. Lim died from a single gunshot wound that entered through the back of her neck.
The Metropolitan Police Department (MPD) has a crime surveillance camera located a block away from the delicatessen at 8th and H Streets NE. A review of the video from the camera showed that a vehicle consistent with the appearance of the vehicle belonging to Ms. Lim pulled up and parked in front of the deli at about 5:25 a.m. on June 14, 2012. The video also shows a single person, believed to be the victim, leaving the vehicle and walking toward the restaurant.
The video then shows, moments later, a single person crossing H Street rapidly on foot, moving toward the front entrance of the restaurant, where that person then proceeds to interact in close proximity with the person believed to be Ms. Lim.
An empty, brown handgun holster was found on the floor directly next to Ms. Lim’s body. DNA from that holster revealed a match to the defendant. Williams’s DNA was also recovered from an empty cash register located inside the restaurant, behind the counter and out of reach from the customer area.
The store never opened that morning and has been shuttered ever since. Williams, an occasional customer at the store who had previously met Ms. Lim, was charged with the murder in November 2012. He has previously been convicted of other violent crimes, including assault with a deadly weapon, armed robbery, and two instances of robbery with a deadly weapon.
“With a single gunshot, this career criminal senselessly executed a beloved deli owner,” said U.S. Attorney Machen. “Thankfully, DNA allowed us to connect this killer to the crime scene, driving him to accept responsibility for his brutal crime. We can only hope that this lengthy prison sentence brings some measure of comfort to Ms. Lim’s family and others who loved her.”
“This was a horrific crime against an innocent victim,” said Police Chief Lanier. “A combination of the use of technology, forensics, and diligent investigative work of our detectives led to the closure of this case. It is our hope that this sentencing brings some comfort to the Lim family.”
In announcing the sentence, U.S. Attorney Machen and Chief Lanier praised the work of those who investigated the case for the MPD. They also expressed appreciation for the work performed by the District of Columbia Department of Forensic Sciences. Finally, they commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Michael C. Liebman and Justin Dillon, who investigated and prosecuted the matter.
13-220District Man Sentenced to 11 Years in Prison in 2009 Slaying in Northeast Washington-Technology Provided Key Evidence in Case-Read the Press Release
WASHINGTON – Terrell Patton, 21, of Washington, D.C., was sentenced today to 11 years of incarceration on a charge of voluntary manslaughter while armed stemming from a slaying in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Patton pled guilty in April 2013 in the Superior Court of the District of Columbia. He was sentenced by the Honorable Robert E. Morin. Upon completion of his prison term, Patton will be placed on five years of supervised release.
According to the government’s evidence, on Oct. 29, 2009, at about 10:30 p.m., Patton, also, known as, “Fatman,” was observed with the victim, Deuante Ray, 20, in the area of the 1200 block of 49th Place NE. Another individual observed Patton in possession of a nine-millimeter handgun. A third person noted that the defendant was angry with Mr. Ray because he believed that Mr. Ray had taken his pack of Ecstasy pills valued at roughly $80.
At approximately midnight, Patton called Mr. Ray’s friend and asked to talk to Mr. Ray. He told Mr. Ray to meet him on 49th Street. Mr. Ray was last seen riding a bicycle and entering a rear alley off the 1100 block of 48th Street NE with Patton.
By Patton’s own admissions, he permitted Mr. Ray to use his cellphone to call Mr. Ray’s girlfriend. Mr. Ray made one call to his girlfriend at 12:20 a.m. on Oct. 30, 2009, and a second call at 12:30 a.m., which ended at 12:35 a.m. Phone records and other witnesses confirm that Mr. Ray had used Patton’s telephone.
ShotSpotter technology recorded gunfire at 12:35:15 a.m. in the rear alley. A witness heard shots and observed a thin person and a heavier individual in the alley. This witness called 911 at 12:36 a.m. This witness also saw the heavier individual, believed to be Patton, take a bike. The witness was unable to make any identification.
The Metropolitan Police Department (MPD) arrived at approximately 12:40 a.m. and found Mr. Ray’s body. He had been shot at close range in the head and also in the chest with a nine-millimeter weapon. He was found with his pants down, and his pockets turned out. Mr. Ray was known to typically carry a wallet, and none was found. His bike also was missing.
Patton was arrested in Washington, D.C. on July 2, 2011 and has been incarcerated since.
In announcing the sentence, U.S. Attorney Machen praised the work of the MPD detectives and officers who investigated the case. He also acknowledged the effort of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Kelly Blakeney, Fern Rhedrick and Phaylyn Hunt; Investigators Stephen Cohen, Durand Odom and Tommy Miller; Victim/Witness Advocate Marcia Rinker; Litigation Technology Specialist Leif Hickling, and Assistant U.S. Attorney David B. Goodhand of the Appellate Section. Finally, he commended the work of Cynthia G. Wright, of the Homicide Section, who prosecuted the case.
13-222District Man Pleads Guilty to Sexually Abusing Stepdaughter, Violating Court Orders, and Assaulting Police Officer with A Knife-Defendant Sexually Abused Victim at Family’s Home-Read the Press Release
WASHINGTON – A 47-year-old man from Washington, D.C. has pled guilty to sexually abusing his stepdaughter on two occasions, sending letters and making phone calls to her and her mother in violation of court orders not to do so, unlawfully entering the family’s house after being ordered to stay away, and assaulting a police officer who had come to assist the family in the unlawful entry, U.S. Attorney Ronald C. Machen Jr. announced today.
The defendant, who is not named here to protect the privacy of the victim, entered the guilty plea June 20, 2013, in the Superior Court of the District of Columbia. He pled guilty to charges of first-degree child sexual abuse, attempted first-degree child sexual abuse, violating a civil protection order, criminal contempt, unlawful entry, and felony assault on a police officer. The Honorable Patricia A. Broderick scheduled sentencing for Aug. 16, 2013. Following completion of his prison sentence, the defendant must register for 10 years as a sex offender.
The defendant is the ex-husband of the girl’s mother. At the plea hearing, he admitted that in the spring of 2012, when the victim was 14, he sexually abused the girl at their home in the District of Columbia. As a result of the sexual abuse, the victim became pregnant. The defendant told the victim to say that the baby’s father was a boy from school. Early this year, the victim revealed to her mother that the baby’s father was the defendant. The baby was born a few months ago. The victim further disclosed to law enforcement that the defendant had sexually abused her over a period of time beginning in at least 2010.
Early this year, the victim’s mother filed for and was granted a civil protection order from the defendant. On or about Feb. 5, 2013, he sent the victim’s mother a text message indicating that he knew who she was with. Alarmed that the defendant was nearby and watching her, the victim’s mother contacted the Metropolitan Police Department (MPD). Officers met her outside her house and went inside to make sure the defendant was not there. Two uniformed officers went into the basement. The defendant jumped out from beneath the stairway, brandished a knife, and stabbed one of the officers in the torso, cutting through his shirt and bullet-resistant vest. The defendant was placed under arrest. He later violated court orders by mailing a hand-written letter to the victim’s mother and calling the victim numerous times.
In announcing the guilty plea, U.S. Attorney Machen acknowledged the work of the MPD, especially the detectives who led the investigation of the case. U.S. Attorney Machen also praised the work of Victim/Witness Advocates Shawn Slade and Veronica Vaughn, as well as Paralegal Specialist Jason Manuel. Finally, he commended Assistant U.S. Attorneys Amy H. Zubrensky and Jeff T. Cook, who investigated and prosecuted the case.
13-219Detroit Area Doctors Charged with Illegal Distribution of Prescription Drugs and Health Care FraudRead the Press Release
An indictment was unsealed today charging Dr.Hussein “Sam” Awada, 43, and Dr. Luis Collazo, 53, with the illegal distribution of prescription drugs and health care fraud, United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge Robert L. Corso, U.S. Drug Enforcement Administration (DEA), Detroit Field Division; Special Agent in Charge Lamont Pugh, Health and Human Services, Office of Inspector General; and Special Agent in Charge,Robert D. Foley, III, Federal Bureau of Investigation.
The 68-count superseding indictment charges that from December 2010 through 2012, Dr. Awada and Dr. Collazo distributed controlled substances, including the highly addictive drugs Oxycodone, Roxicodone, andOpana ER, outside the course of usual medical practice and for no legitimate purpose. Both defendants were also charged with billing Medicare and other health insurance programs for medically unnecessary testing and procedures.
The superseding indictment alleges that Dr. Awada used recruiters, including co-defendant James Lyons, 39, to bring patients to his “Midwest Family Practice” at two locations in Warren. After ordering unnecessary medical procedures, Dr. Awada gave controlled substance prescriptions to the recruiter in exchange for cash payments. The recruiter then sold the pills for profit on the illegal street market.
The superseding indictment also charges that Dr. Awada and Dr. Collazo committed health care fraud by billing for unnecessary office visits, submitting patients brought by recruiters to medically unnecessary testing and procedures (including x-rays, nuclear cardiac stress tests, electrocardiograms, blood work, and injections), and by causing Medicare and other insurance programs to pay for unnecessary controlled substances.
According to the superseding indictment, Dr. Collazo participated in the drug diversion and health care fraud scheme while he worked for Dr. Awada at the Midwest Family Practice on 12 Mile Road in Warren.
More than $600,000 in funds and three automobiles were seized during the course of the underlying investigation. The United States will pursue forfeiture of all proceeds and property traceable to the offenses charged.
U.S. Attorney McQuade said “Health care fraud diverts taxpayer dollars from needy patients to greedy criminals. We hope that our enforcement efforts will deter other doctors from engaging in fraud."
Robert L. Corso, DEA Special Agent in Charge said, "This indictment is another example of DEA's determination to combat the troubling prescription drug abuse problem in this country. These two doctors abused their positions of trust and jeopardized the lives of many individuals by illegally distributing highly addictive opiate painkillers. The DEA and our partners in law enforcement will continue to investigate and bring to justice those individuals that are responsible for the illegal distribution of prescription medicines."
"The improper distribution of controlled substances poses a significant threat not only to the financial health of the Medicare and Medicaid programs but to the wellbeing and safety of the patients that these programs serve", said Lamont Pugh III, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General - Chicago Region. "The OIG, along with out law enforcement partners, will aggressively investigate allegations of this nature in order to protect tax payer dollars and ensure patient safety."
Robert D. Foley III, FBI Special Agent in Charge said, "These charges represent a serious abuse of the health care system. Those motivated by greed who unlawfully take from a system designed to care for patients, will be tirelessly pursued by the FBI and prosecuted for their crimes."
Dr. Collazo will be arraigned on the superseding indictment on Friday, June 21. Dr. Awada will be arraigned on Monday, June 24.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
The case was investigated by Special Agents of the DEA, HHS-OIG, and FBI. The case is being prosecuted by Assistant U.S. Attorneys Wayne Pratt, Sarah Resnick Cohen and Gjon Juncaj and Special Assistant U.S. Attorney Justin Bidwell.
Dayton Payroll Company Owner Sentenced to 78 Months in Prison for Conspiracy in $26.7 Million Dollar Tax SchemeRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI –Robert R. Sacco, 62, the owner and chairman of the board of Dayton-based Paysource, was sentenced to 78 months in prison in a conspiracy and financial crimes scheme involving withholding money to pay federal employment taxes from employees’ paychecks and keeping the money instead of paying it to the IRS. In addition, Sacco must pay a $26,729,098.79 money judgment.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS) announced the sentence handed down today by U.S. District Judge Michael R. Barrett.
Sacco previously pleaded guilty on October 26, 2012 to one count each of conspiracy to defraud the United States by impeding the Internal Revenue Service, money laundering, and tax evasion.
According to court documents, Sacco and others conspired to avoid the payment of federal employment taxes owed by Paysource for 2007 through 2009 and concealed from the IRS the legitimate tax liabilities the company owed. Sacco directed co-conspirators to prepare fraudulent IRS forms claiming that the wages paid by the company and the resulting tax liabilities were significantly lower than the wages the company actually paid.Sacco, lived in Huber Heights prior to moving to Orlando in 2010.
Paysource was a Dayton-based professional employer organization. Paysource provided services that enabled business owners to cost-effectively outsource the management of human resources, employee benefits, payroll and workers’ compensation and other strategic services. It did this by hiring a client company’s employees, thus becoming their employer of record for tax and insurance purposes. This practice is known as co-employment.
After serving his prison term, Sacco must serve three years of supervised release. He was also ordered to pay $26,729,098.79 in restitution, jointly and severally with Charles Painter who was also charged in the scheme, to the Internal Revenue Service.
Stewart commended the investigation by IRS Criminal Investigation agents, and Assistant U.S. Attorney Dwight Keller, who is prosecuting the case.
# # #Danville Man to Serve 12 ½ Years in Prison for Bank RobberyRead the Press Release
URBANA, Ill. – This week, U.S. District Judge Michael P. McCuskey sentenced Frank P. Sutton, 26, of Danville, Ill., to 151 months (12years, 7 months) in prison for robbing a Danville bank last year. At sentencing, on Tuesday, June 18, Sutton was also ordered to pay restitution to the bank in the amount of $1,340.
On Feb. 11, 2013, Sutton pled guilty to the Sept. 14, 2012, robbery of Old National Bank, at 2431 N. Vermilion Street. According to court documents and statements during court proceedings, this is Sutton’s third conviction for bank robbery.
Sutton admitted that on Sept. 14, he approached a bank teller and said, “I’m on a suicide mission,” and handed the teller a note that stated, “I need your money.” The teller handed the defendant $1,340 in U.S. currency and Sutton fled the bank. Several days later, Sutton was arrested in Chicago, where Sutton said he fled by taking a freight train, and used the robbery money to buy heroin.
Sutton has remained in the custody of the U.S. Marshals Service since he was indicted by a federal grand jury in November 2012.
The investigation was conducted by the Danville Police Department. The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller.
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Commercial fisherman charged with making false records and statements to cover up illegal fishing in AlaskaRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a State of Washington resident was indicted by the federal grand jury in Anchorage, Alaska, for making false records under federal fish and wildlife laws, and making false material statements to a federal government agency.
According to the indictment, Steven Carr, 54, fishing out of Kodiak, Alaska, was the owner and operator of the Fishing Vessel (F/V) SEA MAC. In 2008, Carr held permits allowing him to participate in the entry-level Rockfish Pilot Program. In early July 2008, Carr made four voyages where he fished in Federal Statistical Area 630, which was unavailable to him. The indictment alleges that in order to cover up his illegal fishing, he stated in his Daily Fishing Logs that he fished in Area 640, which was further away from his homeport in Kodiak.
During those four voyages, Carr caught 761,421 pounds of Pacific Ocean Perch, which he sold for over $120,000.
The maximum penalty for violating the Lacey Act, which makes it illegal to make a false record related to fish, wildlife or plants valued over $350.00 and transported in interstate or foreign commerce is up to five years in prison and a $250,000 fine. The maximum penalty for making a material false statement to a government agency is also up to five years in prison and a $250,000 fine.
Ms. Loeffler commends the National Oceanic and Atmospheric Administration, Office of Law Enforcement, for the investigation of this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Chinese Nationals Ordered to Prison in Alien Harboring and Unlawful Employment ConspiracyRead the Press Release
HOUSTON – Song Yu, 32, and Cheng Jie Chen, 40, both from the Katy area, have been sentenced for their roles in a conspiracy to harbor and induce illegal aliens to reside in the U.S., United States Attorney Kenneth Magidson announced today. Yu and Chen both previously pleaded guilty as did a third defendant - Hue Chen, 36.
U.S. District Judge Melinda Harmon sentenced both Yu and Cheng Chen to 15 months to be followed by one year of supervised release. Chen was also assessed a $10,000 fine. Hue Chen was previously sentenced to six months in prison.
During the course of the conspiracy, the three hired unauthorized aliens from Guatemala to work at the Bamboo Village aka New Bamboo Village restaurant, some of whom were allegedly directed to obtain fraudulent work authorization documents. These people never presented identification documents and never completed I-9 forms, as required by law. Court records indicated the illegal aliens and other workers were provided housing and were transported to and from the restaurant.
Bamboo Village restaurant is a Chinese restaurant located on the 5100 block of Avenue H in Rosenberg. Cheng Jie Chen was its original director and president. On April 5, 2010, the restaurant changed the corporation name to New Bamboo Village Inc., at which time Yu, the nephew of Cheng Jie Chen, was named as the director and president.
Federal law requires employers to hire only United States citizens and aliens who are authorized to work in the United States. Further, employers must verify employment eligibility using the Employment Eligibility Verification Form (I-9). The employer is required to examine, at the time of hire, the documentation provided by the individual that establishes his identity and employment eligibility to ensure the documents presented appear to be genuine and relate to the individual. The employer must retain the I-9 forms for three years after the date of the hire or one year after the date the individual’s employment is terminated, whichever is later.
On March 24, 2009, Homeland Security Investigations (HSI) agents encountered and arrested unauthorized aliens at a residence on the 4900 block of Timber Lane in Rosenberg. These individuals, who did not have the proper I-9 documentation, allegedly worked at Bamboo Village and resided at the Timber Lane location. According to the indictment, they would be transported daily to the restaurant for work.
HSI issued a warning notice to the restaurant on or about July 1, 2010, advising then owner Chen Jie Chen of the penalties associated with knowingly hiring and employing unauthorized aliens and the lack of the I-9 forms.
On Aug. 22, 2012, HSI personnel again encountered more unauthorized aliens who were arrested at the same Timber Lane residence. At the time, all were allegedly being housed by the defendants at this location while working at New Bamboo Village.The case was investigated by Homeland Security Investigations (HSI). Assistant United States Attorney Suzanne Elmilady is prosecuting the case.
Chairman of Woodland Park, N.J., Democratic Committee Admits Bribing an IRS OfficialRead the Press Release
CAMDEN, N.J. – The chairman of the Woodland Park, N.J., Democratic Committee admitted today that he bribed two individuals he thought were IRS officials so that he could eliminate his tax debt, U.S. Attorney Fishman announced.
Michael Kazmark, 60, of Woodland Park pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging him with one count of bribing a federal public official in exchange for official action. He admitted making $18,500 in corrupt payments.
According to documents filed in this case and statements made during Kazmark’s guilty plea proceeding:
Kazmark failed to pay federal income taxes from 1997 through 2005. In 2010, Kazmark owed the IRS $98,046 in unpaid federal income taxes, interest and penalties. On April 18, 2010, Kazmark made an application to the IRS for an offer in compromise, requesting that he pay $48,800 to the IRS in order to settle his entire federal tax debt.
On Oct. 5, 2010, Kazmark paid a $1,000 bribe to two individuals he thought were IRS officials in exchange for their official assistance in transferring his offer in compromise file to one of the officials so that the official could accept it. On Nov. 23, 2010, Kazmark made a $17,500 bribe payment to the individuals in exchange for their official assistance in placing his federal tax liability in noncollectible status for two years and agreeing to accept Kazmark’s offer in compromise for the amount of the check that he had already paid to the IRS – $9,760 – if he did not incur any additional federal tax liability for two years.
The count to which Kazmark pleaded guilty is punishable by a maximum potential penalty of 15 years in prison, a $250,000 fine, twice the aggregate loss to victims or gain to the defendant, or three times the amount of the bribe payments. Sentencing is scheduled for Sept. 28, 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 the U.S. Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Robert Geary, for the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorney Vikas Khanna of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
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Defense counsel: Miles Feinstein Esq., Clifton, N.J.
Kazmark Information
Belleville Man Charged with Child Pornography OffensesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that Daris A. Quinn, a/k/a “DQ,” 25, Belleville, IL, was arraigned today, June 21, 2013, on a four-count Indictment charging, in Count 1, Distribution of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, in Count 2, Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, in Count 3, Using a Communication Facility to Facilitate a Drug Transaction, and, in Count 4, Making a False Statement to a United States Postal Inspector. Quinn’s trial is scheduled for August 26, 2013, in East St. Louis, Illinois. Quinn was ordered detained, that is, held without bond, pending trial.
If convicted of Distribution of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, Quinn faces a term of imprisonment of not less than 5 years but not more than 20 years, a fine up to $250,000, and a term of supervised release of not less than five (5) years to life. If convicted of Possession of Visual Depictions of Minors Engaged in Sexually Explicit Conduct, Quinn faces a term of imprisonment of not more than 10 years, a fine up to $250,000, and a term of supervised release of not less than five (5) years to life. If convicted of Using a Communication Facility to Facilitate a Drug Transaction, Quinn faces a term of imprisonment of not more than 4 years, a fine up to $250,000, or both, and a term of supervised release of not more than 3 years. If convicted of Making a False Statement to a United States Postal Inspector, Quinn faces a term of imprisonment of not more than 5 years, a fine up to $250,000, or both, and a term of supervised release of not more than 3 years.
An indictment is merely the method by which federal charges are lodged. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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.”
The case was investigated by the Collinsville Police Department, the United States Postal Inspection Service and the Federal Bureau of Investigation’s Springfield Child Exploitation Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
Baltimore Felon Convicted of Armed Bank RobberyRead the Press Release
Baltimore, Maryland – A federal jury today convicted Maurice Colbert, age 59, of Baltimore, Maryland on charges of armed bank robbery, forcing a bank employee at gunpoint to accompany him around that bank, and brandishing a firearm during a crime of violence.
The conviction was 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; and Chief James W. Johnson of the Baltimore County Police Department.
According to the evidence presented at his four day trial, Colbert robbed the First Mariner Bank in Middle River, Maryland on November 7, 2011, stealing $31,153. Witnesses testified that Colbert entered the bank, announced the robbery and brandished a gun at customers and bank employees, even forcing a bank employee at gunpoint to accompany him around the bank. After bank employees handed over the money Colbert demanded, he fled the bank. According to witness testimony, Colbert was subsequently arrested at a nearby business. At the time of his arrest, Colbert had dye stains on his pants and socks and dye stained cash was found in his pants pockets. According to trial testimony, Colbert had a previous felony conviction.
Colbert faces a maximum sentence of 25 years in prison for armed bank robbery; a mandatory minimum of 10 years in prison for forcing the bank employee to accompany him; and a minimum of seven years and a maximum of life prison, consecutive to any other sentence imposed, for brandishing a firearm during a crime of violence. U.S. District Judge Catherine C. Blake scheduled sentencing for October 4, 2013, at 9:15 a.m.
United States Attorney Rod J. Rosenstein praised the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Gregory R. Bockin, who are prosecuting the case.
Baltimore Felon Convicted of Armed Bank RobberyRead the Press Release
Baltimore, Maryland – A federal jury today convicted Maurice Colbert, age 59, of Baltimore, Maryland on charges of armed bank robbery, forcing a bank employee at gunpoint to accompany him around that bank, and brandishing a firearm during a crime of violence.
The conviction was 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; and Chief James W. Johnson of the Baltimore County Police Department.
According to the evidence presented at his four day trial, Colbert robbed the First Mariner Bank in Middle River, Maryland on November 7, 2011, stealing $31,153. Witnesses testified that Colbert entered the bank, announced the robbery and brandished a gun at customers and bank employees, even forcing a bank employee at gunpoint to accompany him around the bank. After bank employees handed over the money Colbert demanded, he fled the bank. According to witness testimony, Colbert was subsequently arrested at a nearby business. At the time of his arrest, Colbert had dye stains on his pants and socks and dye stained cash was found in his pants pockets. According to trial testimony, Colbert had a previous felony conviction.
Colbert faces a maximum sentence of 25 years in prison for armed bank robbery; a mandatory minimum of 10 years in prison for forcing the bank employee to accompany him; and a minimum of seven years and a maximum of life prison, consecutive to any other sentence imposed, for brandishing a firearm during a crime of violence. U.S. District Judge Catherine C. Blake scheduled sentencing for October 4, 2013, at 9:15 a.m.
United States Attorney Rod J. Rosenstein praised the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Gregory R. Bockin, who are prosecuting the case.
Albuquerque Man Arrested on Federal Child Enticement ChargeRead the Press Release
ALBUQUERQUE – Raymond Berger, 32, of Albuquerque, N.M., was arrested today by agents of Homeland Security Investigations (HSI) on an indictment charging him with enticing a minor to engage in sexual activity. Berger made his initial appearance in federal court this morning and is temporarily detained pending his arraignment and a detention hearing, both of which are scheduled for June 24, 2013.
The indictment alleges that between May 2, 2013 and May 6, 2013, Berger used Craigslist and a cellular telephone to coerce and entice an individual whom he believed to be a minor to engage in sexual activity. Berger allegedly committed the offense in Bernalillo County, N.M. Berger was arrested on state charges of solicitation of a child with an electronic communications devise on May 6, 2013.
If convicted on the federal charge, Berger faces a mandatory ten year prison sentence and a maximum penalty of life in prison. The indictment against Berger is merely an accusation and he is presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Sexual Predator and Exploitation Enforcement (SPEED) Task Force, which is comprised of HSI, the Albuquerque Police Department and the Bernalillo County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Charlyn E. Rees as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Alabama Woman Pleads Guilty to Conspiracy in Tax Refund Identity Theft SchemeRead the Press Release
Scottie Alice Johnson of Montgomery County, Ala., pleaded guilty to one count of conspiracy to defraud the United States for her role in a Stolen Identity Refund Fraud (SIRF) scheme, the Justice Department and the Internal Revenue Service (IRS) announced today.
According to court documents, Johnson conspired with Barbara Murry, Veronica Temple and Yolanda Moses to receive fraudulently obtained tax refunds. Yolanda Moses created a tax-preparation business called B & B Tax Service, which was located in the same building as co-defendant Barbara Murry’s hair weaving shop, called B & B Weaving. The conspirators obtained stolen identities from multiple sources and recruited individuals, including Scottie Alice Johnson, to deposit fraudulently obtained tax refunds into their respective bank accounts. Yolanda Moses and Veronica Temple filed false tax returns using the stolen identities and directed the refunds into bank accounts they or their co-conspirators controlled. Between January 2006 and April 2012, Barbara Murry, Veronica Temple and Yolanda Moses filed over 900 false tax returns with the IRS and fraudulently claimed in excess of $1.7 million. Scottie Alice Johnson’s bank account received $140,505.22 in refunds proceeds. Johnson also used her son’s bank account in the scheme to receive $22,650 in tax refunds.
Sentencing has not yet been scheduled. Johnson faces a maximum sentence of five years in prison, three years of supervised release, restitution, and a maximum fine of $250,000, or twice the loss caused by the offense. Barbara Murry, Veronica Temple and Yolanda Moses earlier pleaded guilty to various charges and each was sentenced to 57 months in prison.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 Jason H. Poole and Michael Boteler and Assistant United States Attorney Todd Brown, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
8 Indicted for Stealing Money from ATMs and Prescription Drugs from PharmaciesRead the Press Release
MINNEAPOLIS—A federal indictment unsealed recently charges eight individuals in connection with a string of burglaries during which money was stolen from ATMs and prescription drugs were stolen from pharmacies. The indictment, which was filed under seal on June 10, 2013, was unsealed on June 18, 2013, following the defendants’ initial appearances in federal court. It charges Derek Edward Benedict, age 41, of Hugo; Lyle Robert Carpenter, age 40, of Hastings; Julia Jean Julien, age 35, of St. Cloud; Timothy Michael Kielb, age 45, of Fridley; Cherilyn Ann Mayotte, age 35, currently incarcerated in Superior, Wisconsin; Jason Michael Mussehl, age 42, currently incarcerated at the Stanley Correctional Institution in Stanley, Wisconsin; Jennifer Suzann Stanley, age 37, no known address; and Jonathan Roger Quast, age 28, of Lexington, Minnesota, with one count of conspiracy to commit bank burglary, bank larceny, and interstate transportation of stolen money.
In addition, Benedict, Carpenter, Julien, Kielb, Mayotte, Mussehl, and Quast were charged with one count of conspiracy to steal controlled substances. Carpenter, Kielb, Mussehl, and Stanley were also charged with one count of bank burglary and two counts of bank larceny. Benedict, Carpenter, Julien, Kielb, Mayotte, and Mussehl were also charged with one count of burglary involving controlled substances. Carpenter, Kielb, Mussehl, and Quast were also charged with one count of credit union burglary, one count of bank burglary, and one count of burglary involving controlled substances. And Benedict, Carpenter, Julien and Mussehl were also charged with one count of interstate transportation of stolen property.
More specifically, the indictment alleges that between October 2009 and February 2013, the defendants conspired with each other and others to enter and attempt to enter buildings that operated in whole or in part as banks or credit unions, because they housed ATM machines. In addition, it alleges that the defendants conspired to transport stolen merchandise and cash between the states of Minnesota and Wisconsin, and Iowa and Minnesota. The indictment also alleges that Benedict, Carpenter, Julien, Kielb, Mayotte, Mussehl, and Quast conspired with each other and others to steal controlled substances from pharmacies.
In addition to those conspiracy charges, the indictment alleges that Benedict, Carpenter, Mussehl, and Stanley stole money from a Bank of America ATM located inside a Robbinsdale Walgreens store on October 24, 2009, and from a Bank of America ATM located inside a Golden Valley Walgreens on November 29, 2009. The indictment further alleges that on July 15, 2012, Benedict, Carpenter, Julien, Kielb, Mayotte, and Mussehl stole various drugs from the Bloomington Drug Store. In addition, Carpenter, Kielb, Mussehl, and Quast allegedly stole money from a credit union ATM located inside the Dakota Convenience store in Prior Lake on August 19, 2012, and money from a U.S. Bank ATM located inside a Circle Pines Walgreens on August 23, 2012. Carpenter, Kielb, Mussehl, and Quast also stole drugs from the Circle Pines Walgreens pharmacy. And on September 9, 2012, Benedict, Carpenter, Julien, and Mussehl allegedly drove from Iowa to Minnesota carrying money stolen from a safe and ATM located inside a Walgreens store in Des Moines, Iowa.
If convicted, the potential maximum penalties are 20 years in prison for conspiracy to commit burglary involving controlled substances, bank burglary, credit union burglary, and burglary involving controlled substances; ten years for bank larceny and the interstate transportation of stolen property; and five years for conspiracy to commit bank burglary, bank larceny, and interstate transportation of stolen property. If convicted, the defendants’ sentences will be determined by a federal district court judge.
This case is the result of an multi-agency investigation conducted by the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation, the Hennepin County Sheriff’s Office, the U.S. Secret Service, the Centennial Lakes Police Department, and the Prior Lake Police Department, with cooperation from the Minnesota Bureau of Criminal Apprehension and the Minnesota Financial Crimes Task Force. It is being prosecuted by Assistant U.S. Attorney Surya Saxena.
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.
Thursday 20 June 2013
“Straw” Owner of Venice Physical Therapy Clinic Pleads Guilty to Conspiracy to Commit Health Care FraudRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that Roberto Fernandez Gonzalez (63, Naples) pleaded guilty today to conspiracy to commit health care fraud. Gonzalez faces a maximum penalty of 10 years in federal prison.
According to the plea agreement, from January 16, 2008, through at least March 31, 2008, Gonzalez conspired with various individuals to execute a scheme to defraud Medicare. During the course of this conspiracy, Gonzalez functioned as the nominee (straw) owner of Rehab Dynamics, Inc. (“Rehab Dynamics”), a physical therapy clinic located in Venice, Florida. Gonzalez had no background in the health care industry, nor did he have money to buy Rehab Dynamics. Rather, the conspirators paid Gonzalez more than $20,000.00 to serve as the straw owner of Rehab Dynamics, as a sham.
During the three months that Gonzalez served as the nominee owner of Rehab Dynamics, the conspirators submitted approximately $1,633,512.21 in fraudulent claims for reimbursement to Medicare. Ultimately, Medicare paid $446,738.85 of those false claims.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Simon Gaugush.
Wyoming Man Sentenced for Assaulting Wife of One DayRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced today that on June 17, 2013, Keith Allen Smith, a 37 year old Northern Arapaho Tribal Member, was sentenced for assaulting his wife and causing her serious bodily injury on the day following their wedding. Mr. Smith was sentenced by Chief U.S. District Judge Nancy D. Freudenthal to 96 months imprisonment, three years of supervised release, and was ordered to pay a $100.00 special assessment. Mr. Smith was also ordered to pay $9271.41 in restitution for costs of medical care associated with the victim's injuries. This case was investigated by the Bureau of Indian affairs with the assistance of the Federal Bureau of Investigation.
Wheeling Man Sentenced to 10 Years Imprisonment for Illegal Possession of A FirearmRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
WHEELING, WEST VIRGINIA — A 28-year old Wheeling, West Virginia, resident who threatened to kill his girlfriend and others with a semi-automatic rifle was sentenced in Federal court on June 20, 2013.
United States Attorney William J. Ihlenfeld, II announced that JORDAN L. LAUDERMILT was sentenced to 120 months imprisonment to be followed by three years of supervised release. LAUDERMILT was found guilty after a jury trial on February 7, 2013, to being a “Felon in Possession of a Firearm” as a result of his use of a Ruger .22 Caliber Rifle in a domestic dispute on Justice Lane in Ohio County in February of 2011. Evidence presented at trial established that LAUDERMILT demanded a cash payment from his girlfriend and when she refused to comply he threatened to shoot her, her father, and her brother. Ohio County Sheriff’s Deputies responded to the scene and placed LAUDERMILT under arrest after surrounding the house and observing him yell out threats of harm for approximately twenty minutes.
LAUDERMILT was remanded to the custody of the United States Marshal pending designation to a Federal institution.
This case was prosecuted by U.S. Attorney Ihlenfeld and Assistant United States Attorney Randolph J. Bernard and in addition to the sheriff’s department it was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Waterloo Man Charged with Child Pornography OffenseRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that on June 20, 2013, Nicholas J. Perjak, 32, Waterloo, IL, was arraigned on an Indictment charging him with Accessing, With Intent to View, Visual Depictions of Minors Engaged in Sexually Explicit Conduct. Specifically, the Indictment alleges that, between on or about May 17, 2012, and on or about October 4, 2012, Perjak accessed with intent to view visual depictions of minors engaged in sexually explicit conduct.
Perjak’s trial is scheduled for August 26, 2013, in East St. Louis, Illinois. If convicted of this charge, Perjak faces a term of imprisonment of not more than 10 years, a fine up to $250,000, and a term of supervised release of not less than five (5) years to life.
An indictment is merely the method by which federal charges are lodged. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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.”
The case was investigated by the Federal Bureau of Investigation’s Metro-East Cyber Crime Task Force. The case is assigned to Assistant United States Attorney Angela Scott.
Waterford Man on Trial for Mortgage Fraud Offenses Pleads GuiltyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JUAN VELEZ, 60, of Waterford, pleaded guilty today before United States District Judge Robert N. Chatigny in Hartford to one count of bank fraud stemming from a mortgage fraud scheme. VELEZ pleaded guilty in the middle of his trial, which began on June 17.
According to court documents and statements made in court, in 2006 and 2007, VELEZ and others engaged in a mortgage fraud scheme involving multiple properties in New London. As part of the scheme, VELEZ acquired properties from a co-defendant and other individuals and then sold the properties to another co-defendant, Flavia Mendoza, at inflated prices using fraudulently obtained mortgage loans.
In pleading guilty, VELEZ specifically acknowledged that he was involved in the fraudulent transaction of a property located at 624-626 Montauk Avenue in New London. As established in court and acknowledged by VELEZ during today’s court proceeding, when VELEZ sold the property to Mendoza there were a number of significant false statements contained in the loan paperwork, including Mendoza’s income, her intention to occupy the property as her primary residence, and the amount of money she was providing to purchase the property. Additionally, the Housing and Urban Development Settlement Statement form (“HUD-1”), which VELEZ signed, falsely stated that Mendoza had provided VELEZ with approximately $29,760 for the purchase of the property when Mendoza had not, in fact, provided any down payment money for the transaction. Based on these false statements, Mendoza obtained a mortgage loan in the amount of $492,699 from the bank.VELEZ, Mendoza and others shared the profits of this and other fraudulently obtained residential mortgage loans, which totaled more than $1.2 million.
Judge Chatigny has scheduled sentencing for September 12, 2013, at which time VELEZ faces a maximum term of imprisonment of 30 years. Mendoza also has pleaded guilty and awaits sentencing.
This matter is being investigated by the U.S. Postal Inspection Service, the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Michael S. McGarry and Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]United Technologies Corporation Liable for over $473 Million <br /> for Inflating Prices on Aircraft Engines Sold to Air ForceRead the Press Release
The U.S. District Court for the Southern District of Ohio found United Technologies Corporation liable for over $473 million in damages and penalties arising out of a contract to provide the Air Force with fighter aircraft engines for F-15 and F-16 aircraft between 1985 and 1990, the Justice Department announced today. United Technologies, which is based in Connecticut, provides a broad range of high-technology products and services to the global aerospace and building systems industries.
“The department will relentlessly pursue justice against those who knowingly submit false claims to the government and abuse the public contracting process,” said Stuart Delery, Acting Assistant Attorney General for the Civil Division. “It is vital that companies who do business with the government provide full and accurate information, and if they do not, they will pay the consequences.”
The government alleged that UTC’s proposed prices for the engine contract misrepresented how UTC calculated those prices, resulting in the government paying hundreds of millions more than it otherwise would have paid for the engines. Specifically, the government alleged that UTC failed to include in its price proposal historical discounts that it received from suppliers, and instead knowingly used outdated information that excluded such discounts.
The government filed suit against UTC in 1999 under the False Claims Act and the common law, and those claims were tried, without a jury, in 2004. An initial decision by the district court in 2008 found UTC liable under the False Claims Act, but did not award any damages. The district court also dismissed the government’s common law claims. That decision was appealed by both the government and UTC. In 2010, the Court of Appeals for the Sixth Circuit affirmed the district court’s finding that UTC was liable under the False Claims Act, but reversed and remanded the case to the district court to recalculate the government’s damages and to reconsider the government’s common law claims.
In yesterday’s ruling, the district court awarded the government False Claims Act damages and penalties of $364 million, which is the highest recovery obtained by the government in a case tried under the Act. The court also awarded an additional $109 million in damages on the government’s common law claims. With the addition of prejudgment interest on the latter claims, which the court has yet to calculate, the government anticipates that the total judgment against United Technologies could be well in excess of half a billion dollars.
This case is being handled by the Civil Division of the Department of Justice. The lawsuit is captioned United States of America v. United Technologies Corp., No. 3:99-cv-093 (S.D. Ohio).U.S. Citizen Indicted for Conspiring to Provide Material Support to A Foreign Terrorist OrganizationRead the Press Release
ALEXANDRIA, Va. – Eric Harroun, 30, of Phoenix, Ariz., was indicted by a federal grand jury today on two charges related to his alleged fighting alongside an Al Qa’ida affiliated terrorist group in Syria.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement.
Harroun, a U.S. citizen who served with the U. S. Army from 2000 to 2003, was indicted on the following charges:
- Conspiracy to provide material support to a foreign terrorist organization;
- Conspiracy to use destructive devices overseas.
The maximum punishment for conspiring to provide material support to a foreign terrorist organization, as alleged in this particular indictment, is 15 years in prison. The second count, conspiracy to use destructive devices overseas, carries a maximum punishment of life in prison.
The indictment alleges that Harroun fought with Jabhat al-Nusrah (al-Nusrah), a designated foreign terrorist organization. al-Nusrah is one of several aliases used by the “al Qa’ida in Iraq” terrorist organization, and since November 2011 the group has claimed responsibility for nearly 600 terrorist attacks in Syria.
According to court documents, Harroun allegedly crossed into Syria in January 2013 and fought with members of al-Nusrah against the Bashar al-Assad regime in Syria. The documents allege that Harroun participated in attacks with al-Nusrah and carried and used various firearms, including a sniper rifle, an AK-47 style machine gun, and a rocket propelled grenade (RPG) weapon.
This case is being investigated by the FBI’s Washington Field Office. Assistant U.S. Attorneys Carter Burwell and Lynn Haaland are prosecuting the case on behalf of the United States, with assistance from the Justice Department’s National Security Division.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the 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.Two Moffat County Ranchers Indicted for Building Trash Dumps on Public Lan and Illegally Diverting WaterRead the Press Release
DENVER – Leland Ray (John) Smith, age 70, and his younger brother, Bradford Moroni (Brad) Smith, age 65, both from Craig, Colorado, were indicted by a federal grand jury in Denver on Tuesday, charged with two counts of committing crimes on BLM land, the United States Attorney’s Office and the Bureau of Land Management announced. The brothers appeared in U.S. District Court in Grand Junction this afternoon, where they were advised by a U.S. Magistrate Judge of their rights and the charges pending against them. They were released on a personal recognizance bond, and ordered to return to court on Monday, June 24, 2013, at 2:00 p.m. in Grand Junction for arraignment.
According to the indictment, the defendants dug trenches on land owned by the United States and administered by the Bureau of Land Management, into which they dumped and buried garbage, waste, and debris generated from their private property. They are also accused of using heavy equipment to excavate pits, create artificial ponds, and affect the flow of the Woodbury Gulch water channel – specifically at a riparian area along the Woodbury Gulch, upon land owned by the United States and administered by the Bureau of Land Management.
If convicted, each defendant faces up to 10 years imprisonment and up to a $250,000 fine per count.
This case was investigated by the Bureau of Land Management (BLM).
The defendants are being prosecuted by Assistant U.S. Attorney Michelle Heldmyer.
The charges contained in the indictment are allegations, and the defendants are presumed innocent until proven guilty.
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Two Legacy Network Executives Plead Guilty in Federal CourtRead the Press Release
POCATELLO – U.S. Attorney Wendy J. Olson announced today that Adrian Rand Robison, 67, of Rigby, Idaho, pleaded guilty to mail fraud. Rand Robison was the founder and chairman of the board of The Legacy Network, an insurance brokerage agency in Rexburg. Adrian Russell Robison, 38, of Idaho Falls, Idaho, pleaded guilty to one count of making and subscribing a false tax return. Russell Robison was the Chief Executive Officer of The Legacy Network, owned a minority interest in the company, and is the son of Rand Robison. The defendants appeared before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello. They were charged in separate informations filed on May 16, 2013, by the U.S. Attorney’s Office.
According to the plea agreement, Rand Robison, a licensed insurance agent, owned a majority interest in The Legacy Network, a company that brokered the sale of life insurance policies between the carriers that offered the policies and the independent insurance agents that marketed the policies to clients. In return for its services, The Legacy Network received a commission paid by the carriers for each policy sold. According to the plea agreement, Rand Robison admitted that he encouraged some high net-worth clients to apply for high face-value life insurance policies with the promise of rebating all or part of the first-year premiums back to the customer. Robison further admitted that he misrepresented in agent reports and other contractual documents, that he would not rebate, or otherwise finance, the premium payments of his clients. The Legacy Network received commission payments from the insurance carriers of approximately 105 to 138 percent of the first-year premium. Robison admitted that with those funds, he rebated some of the premiums to some high net-worth clients and kept the remainder. From 2006 to 2009, the Legacy Network received approximately $1,371,634 in commissions from life insurance carriers on the policies of a group of their high net-worth clients; they rebated approximately $923,497 to the clients and kept approximately $448,137. Robison agreed to pay restitution of $1,371,634.
According to the plea agreement, Russell Robison was aware that agents of The Legacy Network rebated all or part of the premium payments to some of their high net-worth clients, and had, in fact, signed rebate checks to the clients. Neither Robison nor The Legacy Network issued IRS Forms 1099-MISC recording the rebates as income to the high net-worth clients. The company’s internal books and records recorded the rebates as deductible business expenses. After some clients’ policies lapsed due to non-payment of premiums—which occurred typically in the second year of the policies—some policies were replaced with policies issued by different insurance carriers. According to the plea agreement, Robison admitted that for tax years 2007, 2008 and 2009, he filed a partnership income tax return for The Legacy Network, knowing that the returns contained false information by improperly overstating expenses for rebates paid. According to the plea agreement, the total tax loss for tax years 2007 through 2009 was $270,631.
Adrian Rand Robison faces up to 20 years in prison, a maximum fine of $250,000, and up to three years of supervised release. Adrian Russell Robison faces up to three years in prison, a maximum fine of $100,000, and up to one year of supervised release.
The defendants are scheduled to be sentenced on September 12, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The cases were investigated by Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation (FBI), and the Idaho Department of Insurance.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 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 more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Twenty-three Defendants Charged with Various Roles in Supplying Heroin and Cocaine in Illinois, Indiana and WisconsinRead the Press Release
CHICAGO — Twenty-three defendants are facing federal narcotics charges for their alleged roles in supplying and distributing wholesale quantities of heroin and cocaine in Illinois, Indiana and Wisconsin, local and federal law enforcement officials announced today. An investigation led by the Chicago Police Department and the Drug Enforcement Administration resulted in the charges, as well as accumulated seizures since last fall of approximately three pounds of heroin and nearly nine pounds of cocaine. Additional quantities of heroin, crack cocaine, and ecstasy, as well as approximately tens of thousands of dollars, and two guns were seized this morning.
Chicago police, DEA agents, and other law enforcement partners early today executed 11 search warrants upon nine residences and two vehicles in Chicago, and arrested at least 21 of the 23 defendants, in connection with the investigation that began in September 2012.
All 23 defendants were charged with possession with intent to distribute or distribution of narcotics offenses in an 18-count criminal complaint that was filed Wednesday in U.S. District Court and unsealed following the arrests. The defendants arrested began appearing this afternoon in U.S. District Court and remain in federal custody pending detention hearings scheduled for next week.
“This case is yet another example of the remarkable cooperation among the Chicago Police Department, DEA and other local, state and federal law enforcement agencies, extending back decades,” said Gary S. Shapiro, United States Attorney for the Northern District of Illinois. “While these defendants are not charged in this complaint with committing acts of violence or being involved in organized gang activity, we believe that bringing serious charges such as these is an effective tool in reducing violence in our communities – a goal we all share.” Mr. Shapiro announced the charges with Garry F. McCarthy, Superintendent of the Chicago Police Department, and Jack Riley, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration.
“Removing narcotics markets from our communities is an essential part of our strategy to continue reducing violence and crime in Chicago,” said Superintendent McCarthy. “These joint, long-term operations provide a real benefit for our communities and I would like to thank our law enforcement partners for their great work, particularly the men and women of the Chicago Police Department who played a major role in this case.”
The DEA’s Mr. Riley said: “This investigation, which was conducted by the DEA-led Chicago Strike Force, is representative of the commitment that is necessary to dismantle drug trafficking organizations. I’m proud of the work done by these agents and officers, who worked tirelessly to achieve these results, and I’m confident that with our continued partnership, we will have increasing success.”
The investigation was conducted under the umbrella of the U.S. Organized Crime Drug Enforcement Task Force (OCDETF) and the Chicago High-Intensity Drug-Trafficking Area Task Force (HIDTA). The Milwaukee County HIDTA, the DEA in Madison, Wis., the Internal Revenue Service, Criminal Investigation Division in Chicago, the Bureau of Alcohol, Tobacco, Firearms and Explosives in Chicago, and Rockford Police Department, and the Illinois, Indiana and Wisconsin State Police also assisted in the investigation.
According to the allegations in a 262-page complaint affidavit, the investigation determined that:
- MICHAEL WHITING was a wholesale supplier of heroin, working with his brother, ANTONIO WHITING, as well as MICHAEL COLEMAN, COREY MINNIFIELD, and CHARLES JAMES. Investigators also learned that Michael Whiting was supplied heroin by JIMMY SERRANO, and Michael Whiting sold heroin to customers, including VONZAYE DAVIS, of Milwaukee, Wis., and RICHARD HICKS, according to the charges;
- Michael Whiting shared a narcotics stash house at 2437 West Adams St., with Charles James, who was a wholesale supplier of cocaine. Defendants JAMESON HAMLIN, EDUARDO RIVERA, DANIEL VAZQUEZ, and LADELL SMITH supplied cocaine to James, who in turn sold wholesale amounts of cocaine to his customers, including MICHAEL STARNES, MELISSA BELCHER, and MALCOM HARRIS; and
- ERIC PASKON supplied wholesale amounts of cocaine to DANIEL VAZQUEZ, who ran his own wholesale cocaine distribution operation and maintained a stash house in an apartment at 3130 N. Lake Shore Dr. Vazquez employed FRANCISCO MIRELES, ANWER SHABAZ, and ANGEL PEREZ, and supplied wholesale amounts of cocaine to multiple customers, including BRANDON ELSING, NEFTALI FRYTES, and NICOLAS FRANCO.
Between November 2012 and April 2013, the Whiting brothers allegedly sold nearly a half-pound of heroin to a cooperating witness and an undercover agent. During the same time, law enforcement seized an additional 2.5 pounds of heroin and nearly nine pounds of cocaine. On Feb. 22, 2013, Chicago police officers executed a search warrant at the residence of Ladell Smith, in the 300 block of East 125th Street, and seized more than a kilogram of powder and crack cocaine, more than three-quarters of a kilogram of heroin, a .40-caliber Glock handgun, a bullet-proof vest, and more than $20,000. Most of the narcotics and the gun were found behind the radio in the dash board of a vehicle driven by Smith.
The charges against all but five of the defendants carry a mandatory minimum of five years and a maximum of 40 years in prison and a maximum fine of $5 million. Four defendants — Vazquez, Mireless, Shahbaz, and Perez— each face a mandatory minimum of 10 years and a maximum of life in prison and a $10 million fine, while Davis alone faces a maximum penalty of 20 years in prison and a $2 million fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant United States Attorneys Stephen P. Baker, Jeffrey D. Perconte, and Raj P. Laud.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Trafficker of Endangered Wildlife Pleads GuiltyRead the Press Release
United States Attorney Laura E. Duffy announced today that Jason Xie, a resident of Sacramento, California, tendered his guilty plea yesterday before United States Magistrate Judge William McCurine, Jr., to the charge of conspiring to smuggled endangered Totoaba fish swim bladders into the United States.
In his plea, Jason Xie admitted that he conspired with his codefendant, Anthony Bueno, and others to smuggle the Totoaba swim bladders into the United States from Mexico. Xie acknowledged that he intended to sell the swim bladders to the Asian market, both in the United States and abroad. Xie admitted that in February 2013 he received two coolers containing the swim bladders of 100 Totoaba smuggled into the United States, and again on March 30, 2013, he accepted delivery of three coolers containing the swim bladders of 170 endangered Totoaba (about 225 pounds), concealed under layers of fish and ice.
As part of his plea, Xie agreed to forfeit the 170 Totoaba swim bladders and also a $350,000 residence he purchased in Seattle, Washington, which he admitted he purchased with the proceeds of the sale of endangered Totoaba.
Xie further admitted that he paid $1500 per swim bladder in Mexico for the Totoaba. Xie acknowledged as part of his guilty plea that he knew it was unlawful to take, possess, transport and sell Totoaba in Mexico and the United States. The Totoaba smuggled by Xie and his co-conspirators in February and March was valued at over $400,000.
Totoaba macdonaldi, also known as Cynoscion macdonaldi, is the largest species within the scaienidae family. It can grow to more than 62 feet in length, weigh up to 220 pounds, and live up to 25 years. They are endemic only to the Gulf of California, the narrow inlet between Baja California and Mexico's mainland (also called the Sea of Cortez). This fish can be identified by its dusky silver color, elongated body, sharp snout, a projecting lower jaw, and a slightly convex tail.
During their winter migration, schools of adult Totoaba travel northward along the east coast of the Gulf of California to the Colorado River delta, where they remain for weeks before spawning in the spring. The Totoaba's spawning season runs from approximately March to May each year. During this time, Totoaba travel to the shallower waters at the mouth of the Colorado River, making them vulnerable to commercial and sport fishermen.
The Totoaba macdonaldi's large swim bladders are highly prized for use in Chinese soups. These bladders are removed from the fish, dried, and often exported from Mexico to other countries. In some instances, the fish are taken from the Colorado River, carved open so their swim bladders can be removed, and left to die on the shores. The U.S./Mexico ports of entry closest to the Sea of Cortez are in Calexico, California and San Luis, Texas.
While the Totoaba were once abundant in the Gulf of California, and even at one point constituted the second most important commercial fish for Mexico, their populations have declined drastically due to overfishing, pollution, and diversion of waters from the Colorado River.
The Totoaba was included in the most protected list of species covered by the Convention on International Trade in Endangered Species (CITES, Appendix I) in 1976, and was listed as endangered under the Endangered Species Act in 1979. Mexico included it on its list of species "In Danger of Extinction" in 1994. Both Mexico and the United States are signatories to CITES. It is a violation of law in both countries to trade in Totoaba or any part of a Totoaba.
Despite the protection, the species has shown minimal recovery. Unique biological traits, such as its limited geographic range and vulnerability during spawning, along with external pressures of habitat degradation and over-fishing, have pushed the species to the brink of extinction. The nearest Port of Entry in California to the Sea of Cortez is the Port of Entry at Calexico, California. During the period from February to May, 2013, border inspectors in Calexico seized approximately 700 pounds of Totoaba, representing the swim bladders of over 500 endangered fish.
Sentencing for Xie is scheduled for September 13, 2013, at 9:00 a.m. before the Honorable Cathy Ann Bencivengo, United States District Judge.
DEFENDANT Criminal Case No. 13cr1311-CAB Jason Jin Shun Xie SUMMARY OF CHARGESConspiracy, in Violation of Title 18, United States Code, Section 371.
AGENCy
Maximum Penalties: 5 years in custody and/or $250,000 fine, $100 special assessment.U.S. Fish and Wildlife Service
Department of Homeland Security, ICE's Homeland Security InvestigationsToledo Man Found Guilty on Human Trafficking ChargesRead the Press Release
A Toledo man was found guilty by a jury on two counts of sex trafficking of children, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Brady Jackson, 27, will be sentenced later this year. An exact date has not been scheduled.
“This verdict is another stark reminder that human trafficking hides in plain sight,” Dettelbach said. “This defendant's sole purpose was to profit off these girls in the commercial sex industry.”
Jackson advertised on backpage.com in in Septmber 2011 that the two girls, ages 16 and 15, were available for prostitution. Jackson told the girls that he would take all the money they would make from prostitution but that he would take them shopping and get their hair and nails done, according to court records.
This case is being prosecuted by Assistant United States Attorneys Carol M. Skutnik and Ava Dustin following an investigation by the Northwest Ohio Violent Crimes Against Children Task Force (NWOVCACTF).
The NWOVCACTF, directed by the FBI Resident Agency in Toledo, Ohio, includes special agents of the FBI, and agents and officers from the Ohio Bureau of Criminal Identification and Investigation, Ohio Highway Patrol, Toledo Police Department, Lima Police Department, Perrysburg Township Police Department, Fulton County Sheriff's Office and the Ottawa County Sheriff's Office. Toledo Office of the Federal Bureau of Investigation.
#####Three Corpus Residents Sent to Prison in Drug Trafficking, Money Laundering ConspiraciesRead the Press Release
CORPUS CHRISTI, Texas – Three men arrested in January for various drug trafficking and money laundering conspiracies have been ordered to federal prison, United States Attorney Kenneth Magidson announced today. Ignacio Pena aka “Nacho,” 44, Raul Leal Martinez aka “Indio” or “Wahoo,” 36, and, David Pete Dominguez aka “Buda,” 30, all of Corpus Christi, previously pleaded guilty in relation to the case. Four other defendants, Manuel Pena aka “Super,” 48, Jose Guajardo aka “Garfield,” 41, Rocky Bazaldua aka “Rock,” 32, and Julieann Gutierrez, 25, also pleaded guilty and are scheduled for sentencing in September.
Today, U.S. District Judge Janis Graham Jack, who accepted the guilty pleas, handed Ignacio Pena a term of 168 months in prison, while Dominguez was ordered to prison for 120 months. Martinez was sentenced to serve a 85-month term last week. All were further ordered to serve five-year-terms of supervised release following completion of their prison terms.
The indictment charged all of the defendants with conspiring from June 1, 2008, to Jan. 8, 2013, to possess with intent to distribute more than 50 grams of methamphetamine. The investigation revealed that Manuel Pena, a member of and former leader in the Texas Syndicate prison gang, orchestrated various drug deals in the Corpus Christi area. Evidence proved that in May 2011 Manuel Pena made deals to provide cocaine and methamphetamine to Bazaldua and Dominguez. He admitted he acquired cocaine and agreed to sell methamphetamine to Guajardo. Pena also received methamphetamine from Martinez, a local home builder. Ignacio Pena, Manuel Pena’s brother, helped receive and deliver various amounts of cocaine and methamphetamine to various drug dealers in Corpus Christi.
Martinez and Guajardo also pleaded guilty to conspiring to launder the proceeds of their drug sales through various financial transactions. As part of their plea agreements, Manuel Pena, Martinez and Guajardo also agreed to forfeit their interests in various properties around Corpus Christi.
Martinez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future. The remaining defendants have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated through a joint effort by the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, Texas Department of Public Safety, the Nueces and Kleberg County Sheriff’s Offices, and the Corpus Christi, Aransas Pass and Portland Police Departments. The case is being prosecuted by Assistant United States Attorney Michael Hess.
The Department of Justice Files Suit Against Louisiana Pharmaceutical Company for Distributing Unapproved and Misbranded Prescription and Over-the-counter DrugsRead the Press Release
Acting Assistant Attorney General Stuart F. Delery announced today that the Department of Justice, on behalf of the Food and Drug Administration (FDA), has filed suit in the U.S. District Court for the Western District of Louisiana against Sage Pharmaceuticals, Inc. (Sage), its president Dr. Jivn-Ren Chen, and its Director of Corporate Quality, Charles L. Thomas, all of Shreveport, Louisiana. According to the Complaint, the defendants violated the Federal Food, Drug, and Cosmetic Act (FDCA) by manufacturing and distributing unapproved and misbranded drug products. Under the FDCA, before a company can sell a new drug product to consumers, it must submit and receive approval of a new drug application from the FDA. The purpose of this approval process is to ensure that drugs manufactured and distributed to consumers are safe and effective for their intended uses. Furthermore, the FDA requires all drug labeling to have adequate directions for use.
“Today’s action furthers the FDA’s mission of ensuring that all drugs sold to the public are safe and effective, and those companies that undermine this mission will be held accountable,” said Stuart Delery, Acting Assistant Attorney General for the Civil Division.U.S. Attorney for the Western District of Louisiana Stephanie A. Finley said, “This lawsuit demonstrates that this office will make every effort to protect public health by filing enforcement actions against companies that are identified as violating federal law.”
This is the second injunctive case that the government has brought against Sage alleging the distribution of unapproved new drugs. In 2000, the government obtained an injunction against the company banning the manufacture and distribution of two unapproved new drugs. Since that time, FDA inspections revealed that defendants continue to manufacture and distribute other drug products—including prescription pain relievers, over-the-counter (OTC) cough and cold remedies, and OTC wound cleansers—without first obtaining the requisite FDA approvals. As a result, the defendants’ products are unapproved new drugs and misbranded drugs under the FDCA, and potentially unsafe and ineffective.
Despite numerous warnings from FDA, the defendants have failed to bring their operations into compliance with the law. The Justice Department will seek a permanent injunction requiring the defendants to cease all receiving, processing, manufacturing, preparing, packaging, labeling, holding, and distributing activities until they comply with applicable FDA regulations.
The FDA referred this matter to the Department of Justice. The Consumer Protection Branch of the Justice Department’s Civil Division together with the U.S. Attorney’s Office for the Western District of Louisiana brought this case on behalf of the United States.Texas Man Sentenced to 60 Months in Prison for Receiving and Distributing Child PornographyRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced that Juan Carlos Curiel, 22, Missouri City, Texas, was sentenced Wednesday to 60 months in prison by U.S. District Court Judge Elizabeth E. Foote for conspiracy to receive and distribute child pornography. Curiel is also required to complete five years of supervised release and register as a sex offender. Curiel pleaded guilty on April 12, 2012.
According to the evidence presented at the guilty plea, after obtaining a warrant, authorities searched an email account Curiel used. Authorities discovered the email account contained 30 images or videos of child pornography. A search of Curiel’s home Oct. 5, 2011 turned up over 100 videos and images of child pornography on laptops, a desktop computer and other computer storage devices. Curiel admitted that he downloaded many of the images on the computers using an online file-sharing program.
“The defendant’s actions furthered the spread of child pornography and promoted the abuse of the children used to produce it,” Finley said. “Hopefully, this case demonstrates that child predators will be brought to justice. We will continue to prosecute these cases. The safety of the children in this community is a priority for the Western District.”The U.S. Department of Homeland Security investigated the case, and Assistant U.S. Attorneys John Luke Walker and Howard C. Parker prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp and to the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Lafayette FBI office number is (337) 233-2164.
Supplier and Member of Temple Hills Drug Conspiracy Sentenced to 15 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Mack Easy Holland, age 40, of Upper Marlboro, Maryland, today to 15 years in prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute phencyclidine (PCP), crack cocaine and heroin, as well as possession of a firearm in furtherance of a drug trafficking offense.
On June 19, 2013, Judge Titus sentenced Norman Lee, Jr., age 36, of Washington, D.C., to 188 months in prison, followed by four years of supervised release, for conspiracy to possess with intent to distribute phencyclidine (PCP). Judge Titus enhanced Lee’s sentence upon finding that he was a career offender based on three previous drug convictions.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Mark A. Magaw of the Prince George’s County Police Department; and Chief Cathy L. Lanier of the Metropolitan Police Department.
According to their guilty pleas, from at least June 2010 through February 2012, Holland and Lee were a part of a drug trafficking conspiracy based in and around Temple Hills, Maryland that was led by Samuel Braxton. Braxton regularly received multi-ounce to quarter-gallon quantities of PCP from Holland, who was his primary source of supply, and would then add starter fluid or other chemicals to the PCP to increase its quantity. Also during this time period, Braxton received heroin, and crack and powder cocaine from other sources of supply. Braxton sold the PCP, heroin, and crack to regular drug customers in the Washington, D.C. metropolitan area, including Prince George’s County.
On a weekly basis from November 2011 through January 2012, Holland was overheard by law enforcement in phone conversations with Braxton in which they discussed the sale of and arranged transactions involving PCP. On January 5, 2012, Holland was arrested. Law enforcement seized approximately 24 ounces of PCP and 48 grams of heroin, $2,958 in cash and three cell phones from Holland and his car. A subsequent search of Holland’s residence recovered three metal gasoline canisters containing approximately three gallons of PCP from a shipping box outside the house, a 32 ounce bottle full of PCP in the house, four handguns, two of them loaded and over $48,000 in cash. Holland had a previous felony conviction and was prohibited from possessing firearms or ammunition.
In late December 2011, Braxton provided approximately eight ounces of PCP to co-conspirator Maurice Allen, who redistributed those eight ounces of PCP to Lee. Lee was dissatisfied with the quality of the PCP and complained to Allen. Allen advised Braxton that his customer was not satisfied with the quality of the PCP that Allen had provided him and Braxton agreed to exchange four ounces of PCP for a new batch. On January 10, 2012, Allen and Lee drove to Braxton’s apartment in Temple Hills to exchange the PCP, then to a bowling alley, where Allen got out of the car. Law enforcement stopped Lee a short time later and seized four ounces of PCP from Lee.
Over the course of the conspiracy Lee was responsible for the distribution of between 100 and 400 grams of PCP. Holland was responsible for the distribution of at least 12 kilograms of PCP and 48 grams of heroin.
Samuel Braxton, a/k/a “Fats,” age 44, of Temple Hills, Maryland, was sentenced on April 3, 2013, to 27 years in prison for conspiracy to possess with intent to distribute PCP, crack cocaine and heroin. Maurice Allen, a/k/a “Reece,” age 45, of Waldorf, Maryland, pleaded guilty and was previously sentenced to a year and a day in prison.
United States Attorney Rod J. Rosenstein commended the DEA, FBI, Metropolitan Police Department and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Christen A. Sproule, Steven E. Swaney, and Arun Rao, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Statement of the Department of Justice Antitrust Division on <br /> Its Decision to Close Its Investigation of Delta Air Lines’ <br /> Acquisition of an Equity Interest in Virgin Atlantic AirwaysRead the Press Release
The Department of Justice’s Antitrust Division issued the following statement today after announcing the closing of its investigation into Delta Air Lines’ proposed equity investment in Virgin Atlantic Airways Ltd. and their related trans-Atlantic joint venture:
“After a thorough investigation of the competitive effects of the proposed equity investment and joint venture, the Antitrust Division concluded that the facts and circumstances did not warrant further investigation or action.
“In December 2012, Delta Air Lines and Virgin Atlantic reached an agreement to establish a joint venture on flights between North America and the United Kingdom. At the same time, Delta entered an agreement to acquire the 49 percent stake in Virgin Atlantic currently held by Singapore Airlines for $360 million. Virgin Group will retain the majority 51 percent stake.
“The proposed equity investment and joint venture also were subject to review by the European Commission. The division and the European Commission cooperated closely throughout the course of their respective investigations, with frequent contact between the agencies. This cooperation, facilitated by the parties, made for a more efficient review process.
“Delta and Virgin Atlantic also have filed an application with the U.S. Department of Transportation seeking antitrust immunity for their joint venture. The division will continue to consult, as appropriate, with the Department of Transportation as it reviews the request for immunity.”
Stamford Man Pleads Guilty to Racketeering Charge Stemming from Illegal Gambling BuinessesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that DOUGLAS CORBIN, 52,of Stamford, 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 Act (RICO) stemming from his involvement in organized crime-controlled illegal 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, CORBIN and 19 other individuals were charged with various offenses related to their involvement in an illegal Internet sports bookmaking operation and illegal card gambling clubs in Stamford and Hamden that were controlled by the Gambino Crime Family of La Cosa Nostra.
The investigation, which included the use of court-authorized wiretaps, revealed that CORBIN was involved in a large-scale sports bookmaking operation in which gamblers placed bets with offshore Internet sports-gambling websites, particularly www.44wager.com based in Costa Rica.
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.
In addition, CORBIN and others, operated a card gambling club at 514 Glenbrook Road in Stamford, where a house percentage, commonly referred to as a “rake,” was collected from every hand played.
Judge Bryant has scheduled sentencing for September 12, 2013, at which time CORBIN faces a maximum term of imprisonment of 20 years. He also has agreed to forfeit $100,000.
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.
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[email protected]St. Michael Woman Charged with Child Abuse in Death of a Toddler at Spirit LakeRead the Press Release
GRAND FORKS - U.S. Attorney Timothy Q. Purdon announced today that Hope Louise Tomahawk Whiteshield, of St. Michael, N.D., has been charged by Complaint with Child Abuse and Neglect in Indian Country.
Whiteshield, 31, made her first appearance before U.S. District Magistrate Judge Charles S. Miller, Jr., today at 3:30 p.m. The alleged incident involving the death of a two year old child, as described in the complaint, occurred on the Spirit Lake Indian Reservation on or about June 12, 2013.
Judge Miller ordered Whiteshield to be temporarily detained until her detention hearing on Monday, June 24, 2013, at 2:30 p.m. in Grand Forks, N.D.
In Fargo, U.S. Attorney Timothy Q. Purdon said, “The criminal complaint filed today represents the initial charges in this matter. The investigation into the circumstances of this tragedy is continuing. The protection of children is a top priority for my office and we are doing everything possible to thoroughly and deliberately investigate this matter.”
The charge of child abuse and neglect in Indian country carries a statutory minimum mandatory sentence of 10 years’ imprisonment and a statutory maximum sentence of 20 years’ imprisonment.
Purdon stressed that the Complaint is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Janice M. Morley is prosecuting the case.
Sex Offender Sentenced for Possession of Child PornographyRead the Press Release
MARQUETTE, MICHIGAN – Shane Eric Hanley, 45, of Norway, Michigan, was
sentenced to 188 months in federal prison for possession of child pornography, U.S. Attorney
Patrick A. Miles, Jr. announced today. In addition to the prison term, U.S. District Judge R.
Allan Edgar ordered Hanley to serve twenty years of supervised release following his release
from prison, to pay $17,769.00 in restitution to victims, and to pay a $100 special assessment.
Hanley will also be required to re-register as a sexual offender.On February 22, 2013, Hanley pleaded guilty to a federal indictment charging him with
possession of child pornography. The investigation into Hanley’s activities began in July 2011
when agents with the Internet Crimes Against Children task force in Grand Rapids, Michigan
discovered that Hanley was sharing child pornography via peer-to-peer software on his
computer. Subsequent investigation revealed that Hanley had child pornography stored on both
his home computer and DVDs. Hanley admitted that he had used peer-to-peer software to locate
and download child pornography, which he compared to stamp collecting. Hanley had been
previously convicted of criminal sexual conduct in Michigan in 1993 and 1994. Both convictions
involved acts with minors. He was a registered sex offender in Michigan.This case is part of Project Safe Childhood, a nationwide initiative designed to protect
children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's
offices, Internet Crimes Against Children task force (ICAC), federal, state, and local law
enforcement are working closely together to locate, apprehend, and prosecute individuals who
exploit children. The partners in Project Safe Childhood work to educate local communities
about the dangers of online child exploitation, and to teach children how to protect themselves.
For more information about Project Safe Childhood, please visit the following web site:
www.projectsafechildhood.gov.The Michigan State Police and Homeland Security Investigations investigated the case.
The case was prosecuted by Assistant U.S. Attorney Paul D. Lochner.END
Septuagenarian Sent to Prison for Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Jose Luis Salazar, 70, has been ordered to prison following his conviction of sexual exploitation of minors, commonly known as distribution of child pornography, United States Attorney Kenneth Magidson announced today. Salazar pleaded guilty March 11, 2013.
Today, Senior U.S. District Judge Janis Graham Jack, took into consideration the need to protect the public from a possible pedophile and handed Salazar a sentence of 151 months in federal prison. During Salazar’s statement at sentencing, he said he had never physically hurt anyone and told the court he still had a lot to offer society. Salazar went on to say that he could be useful mentoring children. After hearing his allocution, Judge Jack said that she did not believe Salazar understood the gravity of his crime and that her purpose in sentencing was to keep him away from children. Salazar was further ordered to serve a lifetime term of supervised release following completion of his prison term, during which he will be required to comply with numerous conditions designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.
On March 3, 2012, an undercover officer with the Corpus Christi Police Department’s Internet Crimes Against Children Task Force (CCPD-ICAC) downloaded several files of child pornography from a computer connected to the Internet which was traced to Salazar. More child pornography files were later downloaded from Salazar in June and July 2012. A search warrant was executed on Salazar’s Corpus Christi home on Sept. 27, 2012, at which time several electronic storage devices were seized. A computer forensic examination of the seized devices led to the discovery of hundreds of videos and images of child pornography.
Previously released on bond, Salazar was taken into custody following his guilty plea where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and CCPS-ICAC investigated.
This case, prosecuted by Assistant United States Attorney Lance Duke, 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<http://www.usdoj.gov/psc>. For more information about internet safety education, please visitwww.usdoj.gov/psc<http://www.usdoj.gov/psc> and click on the tab "resources."Sentences for on June 17 - June 20, 2013Read the Press Release
Marcus Trevino, 35, of Grand Prairie, Texas, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 20, 2013, on one count of conspiracy to commit mail fraud and wire fraud and one count of arson and aiding and abetting. Trevino was arrested in Cheyenne, Wyoming. He received 24 months imprisonment, to be followed by three years of supervised release. In addition, Trevino was ordered to pay a $200.00 special assessment and restitution in the amount of $2,000.00. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Ira Izell Jones, Jr., 42, was resentenced on June 20, 2013, after being granted a second sentencing hearing by Chief Federal District Court Judge Nancy D. Freudenthal. Jones was previously sentenced in October, 2010 and motioned the court for a new hearing because the sentence issued in 2010 did not apply the terms of the Fair Sentencing Act, which became effective August 3, 2010. The Court vacated the judgment previously entered in this case and resentenced Jones to 180 months imprisonment, to be followed by six years of supervised release and ordered him to pay a $200.00 special assessment. This case was investigated by the U.S. Drug Enforcement Administration.
Robert Shane Esterline, 34, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on June 20, 2013, for being a felon in possession of a firearm. Esterline was obtained via write from state custody. He received 48 months imprisonment, to be followed by three years of supervised release and was ordered to pay a $100.00 special assessment and a $250.00 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Elmer Garcia-Perez, aka Elmer Perez-Garcia, 34, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 17, 2013, for illegal re-entry of a previously deported alien into the United States. Garcia-Perez was arrested in Gillette, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
J. Guadalupe Medina-Zeferino, 30, or Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on June 17, 2013, for illegal re-entry of a previously deported alien into the United States. Medina-Zeferino was arrested in Douglas, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Scranton Man Enters Guilty Plea in Conspiracy Case Involving Illegal AliensRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Scranton man has entered a plea of guilty before U.S. District Court Senior Judge Richard P. Conaboy in Scranton to a conspiracy involving the transportation of illegal aliens.
According to United States Attorney Peter J. Smith, Kerin Hamim, an Indonesian national and illegal alien, pleaded guilty Wednesday to a Felony Information charging him with conspiracy to transport illegal aliens. Hamim was charged for committing the offenses beginning in September 2012 through March 2013. The charges are the result of a joint investigation by the U.S. Department of Homeland Security - Immigration and Customs Enforcement and the Pennsylvania State Police.
The Information to which Hamim pleaded guilty alleges a conspiracy whereby Hamim’s conduct acted to facilitate the employment of dozens of illegal temporary employees to a meat packaging business located in Scranton, Pennsylvania. It is alleged that Hamim, in furtherance of the conspiracy, knowingly provided transportation for the illegal workers and paid the illegal work force in cash on a weekly basis.
Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
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 particular case, the maximum penalty under the federal statute is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
San Angelo, Texas, Man Sentenced to 48 Months in Federal Prison on Federal Obscenity ConvictionRead the Press Release
LUBBOCK, Texas --- Billy Ray Doyle, 59, of San Angelo, Texas, was sentenced today by U.S. District Judge Sam R. Cummings to 48 months in federal prison and 10 years of supervised release, following his guilty plea in March 2013 to one count of attempted transfer of obscene material to a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In late November 2012, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) noticed an advertisement posted on an Internet message board entitled “Looking for company 18-25ish –m4m,” and determined that it was posted by Doyle. During ensuing email conversations between Doyle and an undercover agent who posed as a 15-year-old male, Doyle discussed with the undercover agent such things as showering together, lying naked on a bed together and possibly engaging in other sexual activity. The undercover agent’s age was discussed several times and Doyle repeatedly promised that a potential sexual relationship would remain secret. On December 15, 2012, Doyle emailed the undercover agent a sexually explicit photograph of himself. Doyle was arrested a few days later at a convenience store where he and the undercover agent had agreed to meet. He has been in custody since that time.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI was in charge of the investigation. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
San Angelo, Texas, Man Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
LUBBOCK, Texas — James Arthur Abney, 53, of San Angelo, Texas, appeared today in federal court in Lubbock, Texas, and pleaded guilty, before U.S. District Judge Sam R. Cummings, to one count of possession of child pornography. Abney, who remains in custody, faces a maximum statutory sentence of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, while Abney resided in Ballinger, Texas, he used cell phones to search the Internet for images of child pornography. He saved images of child pornography on his cellphones and downloaded some of the images onto his computer’s hard drive.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Ballinger Police Department and the Runnels County Sheriff’s Office. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Rochester Man Pleads Guilty to Filing False Tax ReturnsRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Patrick Dandrea, 55, of Rochester, N.Y., pleaded guilty to two counts of filing false tax returns before U.S. District Court Judge Frank P. Geraci. The charge carries a maximum penalty of three years in prison and a fine of up to $100,000 on each count.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that the defendant was awarded a contract from Erie County in 2006 to remove damaged trees and branches following the October Storm. As a result of this contract, Dandrea received over $5,000,000 in payments which he failed to report on his 2006 and 2007 Federal Income Tax Returns. As a result, the IRS incurred a tax loss of over $460,000. In addition to being responsible for the tax loss, the defendant is also liable for interest payments and penalties of over $265,000 going back to 2006.
The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigations Division, under the direction of Special Agent in Charge Toni Weirauch, and the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel.
Sentencing is scheduled for September 26, 2013 at 10 a.m. before Judge Geraci.