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7 August 2013
Members of White Supremacist Group Sentenced to Prison for Hate Crime AssaultRead the Press Release
TRENTON, N.J. – Two members of the “Aryan Terror Brigade” white supremacist group were sentenced to prison today for their roles in the New Year’s Eve 2011 hate crime assault of two Middle Eastern men in Sayreville, N.J., U.S. Attorney Paul J. Fishman announced.
U.S. District Judge Joel A. Pisano sentenced Michal Gunar, 29, of East Windsor, N.J., to 33 months in prison. Gunar previously pleaded guilty to an indictment charging him with conspiracy to commit a hate crime assault, as well as the actual commission of a hate crime assault, in violation of the Matthew Shepard and James Byrd Jr., Hate Crimes Prevention Act. Judge Pisano sentenced Kyle Powell, 24, of West Collingswood, N.J., to 15 months in prison. Powell previously pleaded guilty to an information charging him with conspiracy to commit a hate crime assault.
According to documents filed in this case and statements made in Trenton federal court: Gunar admitted attended a New Year’s Eve “meet and greet” white supremacist event at a residence in East Brunswick, N.J., on Dec. 31, 2011. That night, Gunar, Powell and Christopher Ising, 31, of Waretown, N.J., drove to an apartment complex in Sayreville with the express purpose of assaulting random, non-Caucasian individuals. Gunar brandished a knife and attacked two Middle Eastern men, shouting anti-Arab slurs. At his guilty plea proceeding, Gunar admitted he assaulted at least one man by pulling the individual out of a parked car and punching the man about the face and head, causing physical injury.
Ising, a purported member of a white supremacist group known as the “Atlantic City Skins,” previously entered a guilty plea on both counts of the same indictment and charges as Gunar. He is scheduled to be sentenced on Aug. 9, 2013.
In addition to the prison terms, Judge Pisano sentenced Gunar and Powell to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola, Criminal Investigations, Newark Field Office; and detectives from the N.J. State Attorney General’s Office, under the direction of Acting Attorney General John Jay Hoffman, with the investigation.The government is represented by Assistant U.S. Attorneys Dennis C. Carletta of the U.S. Attorney’s Office National Security Unit in Newark, and Trial Attorney Fara Gold of the Criminal Section of the Justice Department’s Civil Rights Division in Washington.
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Member of International Narcotics Trafficking Conspiracy Sentenced in Manhattan Federal Court to 66 Months in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that FRANCIS SOUROU AHISSOU, 48, a citizen of Togo, was sentenced today in Manhattan federal court to 66 months in prison for participating in a conspiracy to import narcotics into the United States. AHISSOU was arrested in Monrovia, Liberia, in coordination with Liberian authorities in February 2011 and transferred thereafter to the custody of the United States. He pled guilty in May 2013 before U.S. District Judge Naomi Reice Buchwald, who imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara stated: “Francis Ahissou was all too eager to sell cocaine to purported associates of the Taliban who planned to distribute it in the United States. Today's sentence is the latest result of this Office’s campaign to hold narco-traffickers to account and destroy these dangerous drug rings.”
According to the Indictment and Complaint previously unsealed in this case, as well as statements made during court proceedings:
Beginning in the summer of 2010, AHISSOU and some of his co-defendants (the “co-defendants”) communicated with confidential sources (“CSs”) working with the DEA, who purported to represent the Taliban. The communications occurred by telephone, via e-mail, and in a series of audio-recorded and videotaped meetings over several months.
During meetings with the CSs beginning in June 2010 in West Africa, AHISSOU and his co-defendants agreed to sell multi-kilogram quantities of cocaine to the Taliban understanding that portions of the cocaine would be transported to the United States by commercial airline and then sold in this country for a profit. AHISSOU also helped arrange the sale of an approximately 800-gram sample of cocaine to the CSs in October 2010.
In addition to the prison term, AHISSOU was ordered to pay a $100 special assessment.
The charges against AHISSOU were the result of the coordinated efforts of the U.S. Attorney’s Office for the Southern District of New York and the DEA’s Special Operations Division, as well as the DEA Lagos Country Office, the DEA Warsaw Country Office, the DEA Ghana Country Office, the DEA Athens Country Office, and the DEA SECI (South East European Cooperative Initiative Regional Center for Combating Transborder Crime). Mr. Bharara praised the outstanding investigative work of the DEA and thanked the U.S. Department of Justice Office of International Affairs and National Security Division, the U.S. Department of State, and the U.S. Immigration and Customs Enforcement for their assistance. Mr. Bharara also thanked the Government of Liberia for its cooperation.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Christian Everdell, Aimee Hector, and Glen Kopp are in charge of the prosecution.
McLaughlin Woman Charged with LarcenyRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, woman has been indicted by a federal grand jury.
Tabitha Good House, age 26, was indicted on July 17, 2013, on one count of Larceny.
The maximum penalty upon conviction is 5 years' custody, a $250,000 fine or both; a period of supervised release of 3 years; and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Good House is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Good House was released with conditions. A trial date has not been set.Maple Plain Man Indicted for Defrauding Mortgage Loan LendersRead the Press Release
MINNEAPOLIS—A federal indictment unsealed late yesterday charges a 38-year-old Maple Plain man with conspiring to defraud mortgage loan lenders. The indictment, which was filed on July 16, 2013, specifically charges Alpha Rashidi Mshihiri with one count of conspiracy to commit bank fraud, three counts of bank fraud, two counts of wire fraud, one count of mail fraud, and one count of money laundering conspiracy. The indictment was unsealed following the Mshihiri’s initial appearance in federal court.
The indictment alleges that from June 2006 through January 2009, Mshihiri conspired with others to defraud and obtain money from mortgage lenders by means of false and fraudulent representations. Mshihiri operated Pristine Home Loans and allegedly recruited straw buyers to purchase residential real estate properties. The straw buyers submitted fraudulent loan applications to the mortgage lenders and, in some instances, used the stolen identity others in their applications.
In support of the false loan applications, Mshihiri purportedly created false documents, such as false W-2s and fraudulent paystubs and driver’s licenses, which the straw buyers then submitted to the mortgage lenders. In some instances, the proceeds of the loans were allegedly used to pay existing mortgages, financially benefiting Mshihiri and his un-named co-conspirators. In other situations, proceeds were purportedly paid as kickbacks to the straw buyers. Every property purchased through the scheme has gone into foreclosure, resulting in substantial losses to the victim lenders.
If convicted, Mshihiri faces a potential maximum penalty of 30 years on each count. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Minnesota Financial Crimes Task Force, the Internal Revenue Service-Criminal Investigations, the United States Secret Service and the U.S. Department of Housing and Urban Development-Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Lola Velazquez-Aguilu.
The Financial Crimes Task Force was established pursuant to state law and is comprised of local, state, and federal law enforcement investigators dedicated to combating the growing problem of cross-jurisdictional financial crimes. The task force, overseen by an advisory board also created under state law, serves the entire District of Minnesota, presenting its cases to county or federal prosecutors, as appropriate.
The U.S. Attorney’s Office wants to remind people to protect themselves from mortgage fraud. For more information, visit http://www.stopfraud.gov/protect-mortgage.html.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Justice Department Files Suit to Stop San Diego Man from Preparing Tax ReturnsRead the Press Release
The Justice Department announced today that the United States has filed a civil injunction suit against Michael I. Turner, of San Diego to stop him from preparing federal tax returns.
The government complaint, filed in the U.S. District Court for the Southern District of California, alleges that Turner, who has prepared returns since at least 2004, has failed to sign or affix a Preparer Tax Identification Number (PTIN) to many of the returns that he has prepared. In addition and according to the government, Turner takes bogus deductions on his customers’ returns in order to claim larger refunds for his customers. His customers then recommend Turner as a tax preparer to their friends, which helps Turner to expand his customer base and further increase his own profits. Specifically, the government alleges that Turner claims inflated or fabricated deductions on the Schedule A of his customers’ Form 1040 tax returns, claiming that his customers have large non-cash charitable contributions and unreimbursed employee expenses. The complaint also alleges that when Turner’s customers are audited, Turner has provided false documents to those customers in an attempt to assist them in substantiating charitable contributions and employee expenses that they did not incur. According to the complaint, however, Turner has instructed his customers not to identify him as their tax return preparer in communications with the Internal Revenue Service (IRS).
The government alleges that Turner continues to prepare tax returns. According to the complaint, Turner applied for a PTIN in 2010, and has prepared at least 68 tax returns for the 2012 tax year using that PTIN.
The government seeks, among other things, that the court bar Turner from acting as a tax return preparer or assisting others in preparing or filing federal tax returns or other tax forms or documents. The government also requests that the court bar Turner from appearing as a representative on behalf of any person or entity before the IRS, and from owning, managing, controlling, working for or volunteering for a tax-return preparation business.
In the past decade the Justice Department Tax Division has obtained injunctions against hundreds of tax preparers. More information about these cases is available on the Justice Department website.
Related Materials:
United States v. Michael Turner
Complaint for Permanent Injunction and Other Relief (PDF)Jury Finds Pollock Prisoner Guilty of Drug PossessionRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that Roy Elbert Carlton, 41, a Pollock prisoner, was found guilty Tuesday by a federal jury of possessing drugs in a federal prison. United States District Judge Dee D. Drell presided over the trial.Carlton’s trial started Monday and ended Tuesday afternoon with the jury returning the guilty verdict after deliberating for 20 minutes. Witness testimony and documents admitted at trial revealed that Whitney C. Anderson visited Carlton Feb. 20, 2010 at the U.S. Penitentiary in Pollock, La. During the visit, one of the children present was sitting on Carlton’s lap. The defendant was seen taking something out of the child’s pocket and then swallowing it. The visit was terminated, and Carlton was taken to a dry cell for observation. He passed what appeared to be balloon fragments and other material that tested positive for the presence of marijuana.
Anderson pleaded guilty July 15, 2013 to one count of providing contraband to a prisoner. She faces up to five years in prison, a $250,000 fine, and three years of supervised release. Sentencing is set for Oct. 28, 2013.
Carlton faces five years in prison, a $250,000 fine, and three years of supervised release for possession of drugs in a federal prison. Sentencing is set for Oct. 30, 2013.
The FBI conducted the investigation. Special Assistant U.S. Attorney Robert J. France and Assistant U.S. Attorney Seth D. Reeg are prosecuting the case.
Joseph John Hurd Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on August 7, 2013, before Chief U.S. District Judge Dana L. Christensen, JOSEPH JOHN HURD, a 22-year-old resident of Missoula, was sentenced to a term of:
Prison: 60 months
Special Assessment: $100
Supervised Release: 5 years
HURD was sentenced in connection with his guilty plea to conspiracy to distribute cocaine.
In an Offer of Proof filed by Assistant U.S. Attorney Tara J. Elliott, the government stated it would have proved at trial the following:
In April, 2012, a Confidential Informant (CI) agreed to cooperate with the FBI regarding his drug trafficking network by providing specific information about his cocaine suppliers in Spokane, Washington and other persons involved in the distribution of cocaine in Missoula. The CI was introduced to HURD and they brokered a deal for the CI to purchase cocaine from HURD.
Beginning in August 1, 2012, the CI met with HURD to conduct a consensually monitored controlled purchase of cocaine and completed the purchase of 7.2 ounces of cocaine for $7,500. The cocaine field tested positive.
On August 23, 2012, the CI again met with HURD to conduct another consensually monitored controlled purchase of cocaine. Prior to the meeting, the CI and HURD agreed to a transaction of 4.5 ounces of cocaine for $5,000. However, the supplier never arrived and the transaction was not completed.
On August 24, 2012, law enforcement conducted an interview with HURD who admitted he was supposed to have received the ten ounces of cocaine from his supplier the previous date. HURD stated his supplier began supplying him with cocaine in January 2012. HURD had traveled to Othello for the first three transactions in January and February paying $1,000 per ounce when he purchased four ounces the first time, six ounces the second time, and six ounces the third time. HURD stated his supplier began traveling to Missoula to deliver the cocaine in February and continued on a nearly weekly basis until he was arrested. HURD estimated his supplier made about thirty trips to Missoula. HURD admitted he sold the cocaine to numerous local persons in Missoula. The total of the cocaine transactions was more than 500 grams.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HURD will likely serve all of the time imposed by the court. In the federal system, HURD does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Informational: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on August 7, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individuals were arraigned:
DONALD RICHARD NISSEN, a 51-year-old resident of Billings, appeared on a charge of conspiracy to possess with the intent to distribute methamphetamine. He is currently detained. If convicted of this charge, NISSEN faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $10,000,000 fine, and 5 years supervised release. Assistant U.S. Attorney Brendan P. McCarthy is the prosecutor for the United States. The investigation was conducted by the Eastern Montana High Intensity Drug Trafficking Area (HIDTA) Task Force.
KAYLENE SHANE RED WOLF, a 44-year-old resident of Hardin, appeared on charges of theft from federal government receiving federal funds and theft of federal funds. She is currently released on special conditions. If convicted of these charges, RED WOLF faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release on each charge. Assistant U.S. Attorney Carl E. Rostad is the prosecutor for the United States. The investigation was conducted by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior.
The defendants pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 6, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
THOMAS ANDREW QUINTON, a 32-year-old resident of Lethbridge, Alberta, appeared on a charge of travel with intent to engage in illicit sexual conduct. He is currently detained. If convicted of this charge, QUINTON faces possible penalties of a 30 years in prison, a $250,000 fine, and lifetime supervision. Assistant U.S. Attorney Michael S. Lahr is the prosecutor for the United States. The investigation was conducted by the U.S. Department of Homeland Security - Homeland Security Investigations.
The defendant pled not guilty to the charge.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Houston Man Pleads Guilty to Meth Possession and Distribution ChargeRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that Ricky Martinez, 43, of Houston, pleaded guilty before U.S. District Judge Patricia Minaldi to possession of methamphetamine with intent to distribute.
According to evidence presented at the guilty plea, a Calcasieu Parish Sheriff’s deputy stopped the defendant on Feb. 13, 2012 for speeding north of Lake Charles. The deputy asked Martinez to step out of the vehicle and saw he had an open beer. The deputy searched Martinez and found $10,540. After searching the vehicle, the deputy found 10 plastic baggies containing suspected methamphetamine, a baggie containing a cutting agent, and a digital scale. The DEA Regional Laboratory in Dallas later confirmed the 10 baggies contained a total of 265.8 grams of pure or actual methamphetamine.
Martinez faces up to 10 years to life in prison, a fine of up to $10 million, and at least five years of supervised release. A sentencing date of Nov. 7, 2013 was set.
Anthony Frederick “Tony” Giaimis, 48, of Westlake, La., and Justin W. Brewer, 42, of Houston, were also charged in the same indictment with Martinez in August 2012.
A jury found Giaimis guilty on April 10, 2013 after a three-day trial to three counts related to the case. He was sentenced Aug. 1, 2013 to 262 months in prison and five years of supervised release for conspiring to distribute methamphetamine, 262 months in prison and four years of supervised release for possessing with intent to distribute methamphetamine, and 262 months in prison and six years of supervised release for felony weapon possession. He is serving the prison and supervised release terms for all three counts concurrently.
Brewer was sentenced on July 25, 2013 to 60 months in prison and five years of supervised release for possession with intent to distribute more than 50 grams of methamphetamine. He pleaded guilty on April 8, 2013.
The Westlake Police Department, Calcasieu Parish Sheriff’s Office, Lake Charles Police Department, FBI-Safe Streets Task Force, Combined Anti-drug Team (CAT) Task Force and the DEA Laboratory conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel is prosecuting the case.
Henderson Man Sentenced to over 17 Years ImprisonmentRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today, Chief United States District Judge James Dever sentenced DARNELL TYRECE HAYES, 35, of Henderson, North Carolina, to 210 months imprisonment followed by 3 years supervised release.
A Federal Grand Jury returned a Criminal Indictment on January 16, 2013, charging HAYES with one count of Possession of Ammunition by a Felon, in violation of Title 18 U.S.C. §922, and one count of Distribution of Heroin, in violation of Title 21 U.S.C. §841. On April 30, 2013, HAYES pleaded guilty to the Distribution of Heroin Charge.
The evidence in the case demonstrated that, on or about June 14, 2012, HAYES sold approximately 2.5 grams of heroin to a confidential informant working for Henderson Police Department. The evidence at sentencing established that HAYES had a long history of crimes of violence including, but not limited to, Discharging a Weapon into Occupied Property, Burning Personal Property, and Felony Speeding to Elude. HAYES also had convictions for drug trafficking, multiple assaults and multiple counts of resisting arrest.
Investigation of this case was conducted by the Henderson Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Rudy E. Renfer represented the government.
Grand Jury Returns Superseding Indictments in Homestead-Area Drug & Gun CasesRead the Press Release
PITTSBURGH, Pa. - On Aug. 6, 2013, a federal grand jury issued superseding indictments in six related cases involving drug trafficking and violence in Homestead, Pa., United States Attorney David J. Hickton announced today. The superseding indictments added new firearms and drug trafficking counts and one additional defendant, to drug and gun charges filed against 34 people on March 14, 2013. The original indictments followed a year-long federal, state, and local law enforcement investigation.
THE SUPERSEDING INDICTMENTS
The first superseding indictment, containing seven counts, named: Brandon Thompson, 30, of Homestead, Pa.; Antonio Hardin, 32, of Monroeville, Pa.; James Walker, 44, of Homestead, Pa.; Joseph Thompson, II, 25, of Homestead, Pa.; Richard Wood, 34, of Homestead, Pa.; Gregory Harris, Jr., 24, of Homestead, Pa.; and
Luther Harper, 27, of Homestead, Pa.According to the indictment, from in and around April 2012, to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Brandon Thompson, Hardin, Walker, Joseph Thompson, II, Wood, Harris, and Harper, conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment also charges that on or about Aug. 12, 2012, Brandon Thompson used, carried, possessed in furtherance of, brandished, and discharged firearms during and in relation to that heroin trafficking conspiracy. The indictment further charges Antonio Hardin with, on or about Feb. 11, 2013, possessing with the intent to distribute a quantity of heroin, possessing a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. Last, on or about Jan. 26, 2013, the indictment charges Richard Wood with possession with intent to distribute a quantity of heroin, and charges Walker and Hardin with distribution and possession with intent to distribute a quantity of heroin. There were no new charges added. However, Brandon Thompson and Antonio Hardin were both named in additional forfeiture allegations. Ed Cook was charged in the initial indictment for discharging a firearm during and in relation to a drug trafficking crime, and he has since pled guilty to that charge.
The second superseding indictment, containing two counts, named: Troy Anderson, 24, of Braddock, Pa.; Mark Felder, 25, of Duquesne, Pa.; and
Dorianne Harris, 20, of Wilkinsburg, Pa.According to the indictment, from in and around May 2012, and continuing thereafter to in and around March 2013, in the Western District of Pennsylvania and elsewhere, Anderson, Felder, and Harris, conspired with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. In terms of new charges, Anderson was charged with possession of a firearm in furtherance of a drug trafficking crime on or about March 14, 2013.
The third superseding indictment, containing three counts, named: Sterling Marshall, 18, of Munhall, Pa.; Tireal Wheeler, 19, of Homestead, Pa.; and
Jordan Murphy, 21, of Homestead, Pa.According to the indictment, from in and around May 2012, and continuing thereafter to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Marshall, Wheeler and Murphy conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. Additionally, the indictment charges that, during that same time period, those same defendants knowingly conspired to employ and hire persons under 18 years of age to distribute heroin. In terms of new charges, Marshall was charged with possession with the intent to distribute a quantity of heroin on or about March 14, 2013. Andre Corbett was charged in the initial indictment, and he has since pled guilty to both counts contained within that indictment.
The fourth superseding indictment, containing six counts, named: Jay Germany, 22, of Pittsburgh, Pa.; Brady Hall, 19, of Pittsburgh, Pa.; Jaquan Washington, 23, of Homestead, Pa.; Hector Guadalupe, Jr., 36, of Brooklyn, NY; Santino Drew, 34, of New Brunswick, NJ; Thomas Martinez, 34, of Edison, NJ; and
Louis Spinnenweber, Jr., 34, of Canonsburg, Pa.According to the indictment, from in and around May 2012, and continuing thereafter to in and around February 2013, in the Western District of Pennsylvania and elsewhere, Germany, Hall, Washington, Guadalupe, Jr., Drew, and Martinez, conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment further charges that, during that same time period, Germany, Hall, and Washington knowingly conspired to employ and hire persons under 18 years of age to distribute heroin. Additionally, on or about Jan. 30, 2013 and Jan. 31, 2013, Drew and Martinez possessed with the intent to distribute 100 grams or more of heroin. Also, on or about Nov. 21, 2012, Spinnenweber, Jr., possessed with the intent to distribute a quantity of a heroin. Last, on or about Oct. 30, 2013, Germany and Hall possessed with the intent to distribute and did distribute a quantity of heroin, and, in a new charge, Washington engaged in that same conduct on or about March 11, 2013.
The fifth superseding indictment, containing 11 counts, named: Bryce Harper, 26, of Homestead, Pa.; Diamantia Serrano, 19, of McKeesport, Pa.; Lacie Harper, 24, of Homestead, Pa.; Ryan Harper, 36, of Munhall, Pa.; Jamar Harper, 32, of Homestead, Pa.; Ronnell Robinson, 19, of Duquesne, Pa.; Seth Lindsey, 18, of Duquesne, Pa.; and
Diassandai Serrano, 18, of McKeesport, Pa.According to the indictment, from in and around July, 2012, and continuing thereafter to in and around February, 2013, in the Western District of Pennsylvania and elsewhere, Bryce Harper, Diamantia Serrano, Lacie Harper, Ryan Harper, Jamar Harper, Ronnell Robinson, and Seth Lindsey conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment further charges that, during that same time period, those same defendants knowingly conspired to employ and hire persons under 18 years of age to distribute heroin. Also, the indictment charges that on or about Sept. 19, 2012, Bryce, Ryan, and Jamar Harper, together with Diamantia Serrano, possessed with the intent to distribute a quantity of heroin.
The indictment added the following eight new counts. On or about Feb. 27, 2013, Diamantia Serrano possessed with the intent to distribute a quantity of heroin, and on that same day, his brother, Diassandai Serrano, a new defendant, possessed a firearm in furtherance of a drug trafficking crime. On March 13, 2013, Ryan Harper distributed a quantity of heroin, and on Feb.
13 and 19, 2013, Ronnell Robinson distributed a quantity of heroin. On Sept. 17, 2012, Ronnell Robinson possessed a firearm in furtherance of a drug trafficking crime, and Bryce Harper was charged with that same crime on March 14, 2013. Also on March 14, 2013, Bryce Harper was charged with being a felon in possession of a firearm.The sixth superseding indictment, containing five counts, named: Thomas Hopes, 21, of Pittsburgh, Pa.; Keith Harris, 22, of Homestead, Pa.; Anthony Smith, 21, of Homestead, Pa.; Hakeem Kirby, 19, of Homestead, Pa.; William McDonald, 68, of Homestead, Pa.; Ronnell Robinson, 19, of Duquesne, Pa.; Gregory Harris, Jr., 24, of Homestead, Pa.; Sterling Marshall, 18, of Munhall, Pa.; and
Diamantia Serrano, 19, of McKeesport, Pa.According to the indictment, from in and around May, 2012, and continuing thereafter to in and around February, 2013, in the Western District of Pennsylvania and elsewhere, Hopes, Harris, Smith, Kirby, and McDonald conspired together and with others to distribute and possess with the intent to distribute one kilogram or more of heroin, a Schedule I controlled substance. The indictment further charges that, during that same time period, those same defendants knowingly conspired to employ and hire persons under 18 years of age to distribute heroin. The indictment also charges that on or about Dec. 18, 2012, Hopes and Kirby possessed with the intent to distribute and did distribute a quantity of heroin. Also, on March 14, 2013, Kirby possessed with the intent to distribute a quantity of heroin. Last, the indictment charges that on or about Jan. 3, 2013, Robinson, Keith and Gregory Harris, Marshall, Serrano and Hopes used, carried, possessed in furtherance of, brandished and discharged firearms during and in relation to a drug trafficking crime and a crime of violence.
PENALTIES
On the conspiracy to distribute one kilogram or more of heroin count, the law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both, for a first-time drug trafficking conviction. For those with one prior felony drug trafficking conviction, the law provides for a maximum total sentence of not less than 20 years and up to life in prison, a fine of $20,000,000 or both, and for those with two prior felony drug trafficking convictions, the law provides for a mandatory minimum sentence of life in prison.
On the firearms' counts charging possession, use, brandishing or discharge of a firearm in furtherance of a crime of violence or a drug trafficking crime, the law provides for a mandatory minimum sentence of five years if the gun is possessed in furtherance of the crime, seven years if the gun is brandished in furtherance of the crime, and 10 years if the gun is discharged in furtherance of the crime. These sentences, by law, must run consecutively to any sentence imposed for the narcotics counts. In addition, the law imposes a fine of up to $250,000. For second or consecutive counts of this nature, the law provides for a mandatory minimum consecutive sentence of 25 years.
For the firearms count charging possession of a firearm by a felon, the law provides for a maximum total sentence of up to ten years in prison, a fine of $250,000, or both. However, if the Court determines that the defendant has three previous convictions for either crimes of violence or serious drug offenses, the law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of $250,000, or both.
Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Assistant United States Attorney Eric S. Rosen is prosecuting these cases on behalf of the government.
The Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Pennsylvania Office of the Attorney General, City of Pittsburgh Bureau of Police, Pennsylvania State Police, Allegheny County Sheriff's Office, McKeesport Police Department, Munhall Police Department, and the West Homestead Police Department conducted the investigation that led to the prosecution of the abovementioned individuals.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Grand Jury Returns 10-count Indictment Against Spine Surgeon Alleging Health Care FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
A federal grand jury returned a ten-count indictment against Abubakar Atiq Durrani, 44, Mason, Ohio alleging that, beginning in 2009, he convinced patients to undergo medically unnecessary spinal surgeries then billed private and public healthcare benefit programs millions of dollars for the fraudulent services.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine, Lamont Pugh III, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation Cincinnati Field Office (FBI), Robert Corso, Special Agent in Charge, Drug Enforcement Administration (DEA) and Bret Flinn, Resident Agent in Charge, Defense Criminal Investigation Service (DCIS) announced the indictment returned today.
Durrani owns a private practice called the Center for Advanced Spine Technologies (CAST) with offices in Evendale and Florence, Kentucky.
The indictment alleges that, in some instances, the scheme to defraud resulted in serious bodily injury. As part of this scheme to defraud, Durrani performed unnecessary procedures and made false statements in relation to lumbar, thoracic, and cervical surgeries.
The indictment alleges that Durrani would tell the patient the medical situation was urgent and that back surgery was needed right away. He would also falsely tell the patient that he/she was at risk of grave injuries without the surgery. For cervical spine patients, Durrani would often tell a patient that there was a risk of paralysis or the head would fall off if the patient was in a car accident because there was almost nothing attaching the head to the patient’s body.
The indictment also alleges that Durrani made false statements to patients, colleagues and hospitals in order to further his scheme.
The indictment charges Durrani with five counts of health care fraud and five counts of making false statements in health care matters. Health care fraud is punishable by up to 20 years in prison. The crime of making false statements in health care matters is punishable by up to five years in prison. The indictment also seeks forfeiture of any proceeds Durrani received as a result of the scheme.
Stewart commended the cooperative investigation by agents and officers of the agencies named above, along with the Ohio Medical Board and Kentucky Medical Board, and Assistant U.S. Attorneys Timothy Mangan and Emily Glatfelter, who are representing the United States in the case.
Anyone suspecting health care fraud, waste or abuse can report it by calling the U.S. Department of Health and Human Services, Office of Inspector General at 800-447-8477. To learn more about health care fraud prevention and enforcement go to www.stopmedicarefraud.gov. Ohioans can report suspected instances of health care fraud to Attorney General DeWine’s office by calling 1-800-282-0515.
An indictment contains allegations and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Gloucester County, N.J., Man Indicted on Exploitation, Child Pornography ChargesRead the Press Release
CAMDEN, N.J. – A Gloucester County, N.J., man was indicted today by a federal grand jury in Camden for allegedly exploiting two minor boys and for possessing, receiving and distributing images of child sex abuse, U.S. Attorney Paul J. Fishman announced.
Gerrett Conover, 48, of Woolwich Township, N.J., a former Boy Scout troop leader, was charged by complaint in September 2012 with one count of receiving images of child sex abuse over the Internet and has been held in federal custody since that time. Today’s indictment charges two counts of the sexual exploitation of children, 10 counts of the receipt or distribution of images of child pornography and one count of possession of additional images of child pornography.
According to the indictment returned today and other documents filed in this case: On Sept. 16, 2012, Conover was intercepted at the United States border coming from Canada into New York and was found in possession of a laptop computer containing images of child pornography. Federal agents obtained a search warrant for Conover’s home in Woolwich Township, and seized various computers and computer related media containing additional images of child sexual abuse, chats and emails.
The count of child exploitation with which Conover is charged is punishable by a maximum potential penalty of 30 years in prison, with a mandatory minimum penalty of 15 years in prison, and a $250,000 fine per count. Conover faces a mandatory minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison and a $250,000 fine for each count of distribution of child pornography. The possession count is punishable by a maximum potential penalty of 10 years in prison, and a $250,000 fine. Conover will be arraigned on the indictment at a later date.
U.S. Attorney Fishman credited special agents of the Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Special Agent in Charge Andrew M. McClees, with the assistance of HSI Offices in Boston, Mass.; Messina, N.Y.; and Los Angeles and San Bernardino, Calif.; and Customs and Border Protection in Ogdensburg, N.Y., with the investigation.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
The charge and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Jerome M. Brown Esq., PhiladelphiaConover Indictment
Four Plead Guilty in International, $200 Million Credit Card Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A New York man who participated in one of the largest credit card fraud schemes ever charged by the Justice Department today admitted his role in the scheme, the fourth conspirator to do so in a two-week period, New Jersey U.S. Attorney Paul J. Fishman announced.
Muhammad Shafiq, 39, of Bellrose, N.Y., pleaded guilty today before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of conspiracy to commit bank fraud. Vernina Adams, 31, of Philadelphia and Raghbir Singh, 57, of Hicksville, N.Y., pleaded guilty on July 31, 2013, to separate informations charging the same offense. Mohammad Khan, 49, of Staten Island, N.Y., pleaded guilty on July 24, 2013, to an information charging conspiracy to defraud the United States.
According to documents filed in this case and statements made in court: Shafiq, Adams, Singh and Khan were originally charged in February 2013 as part of a conspiracy to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards. Members of the conspiracy doctored credit reports to pump up the spending and borrowing power associated with the cards. They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts – causing more than $200 million in confirmed losses to businesses and financial institutions.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus; pump up the credit of the false identity by providing false information about that identity’s creditworthiness to those credit bureaus; then run up large loans.
The scope of the criminal fraud enterprise required Shafiq, Adams, Singh, Khan and their conspirators to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses of the false identities.
During their guilty plea proceedings, Shafiq, Singh and Khan admitted they helped obtain credit cards in the name of third parties – many of which were fictional – then directed the credit cards to be mailed to addresses controlled by members of the conspiracy. They also admitted they knew the cards would be used fraudulently at businesses, with Khan admitting to personally using the cards.
Adams and her conspirators also used sophisticated methods – including a network of black-market businesses called “tradelines” providers – to commit fraud.
During her plea proceeding, Adams admitted advertising on Craigslist for individuals willing to add someone onto their credit cards. She also admitted selling other members of the conspiracy fraudulent “tradelines,” including by working with Acapulco Jewelry, a complicit business in California. Adams would extend a fictitious line of credit to a false identity, backdate the line of credit so it appeared to have existed for a longer period of time, then falsely report the line of credit had been paid.
The count to which Shafiq, Adams and Singh pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gain or loss caused by the offense. The count to which Khan pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss caused by the offense.Each defendant is scheduled for sentencing by U.S. District Judge Anne E. Thompson in Trenton, N.J.: Shafiq on Nov. 14, 2013; Adams and Singh on Nov. 7, 2013; and Khan on Oct. 30, 2013.
U.S. Attorney Fishman praised special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to the guilty pleas, as well as postal inspectors, under the direction of Postal Inspector in Charge Marie L. Kelokates, and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola. He also thanked the U.S. Social Security Administration for its role in the investigation.
The government is represented by Assistant U.S. Attorneys Zach Intrater and Daniel V. Shapiro of the U.S. Attorney’s Office Economic Crimes Unit and Barbara Ward of the office’s Asset Forfeiture Unit in Newark.This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
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Defense counsel: Muhammad Shafiq: Joseph Horn Esq., Rutherford, N.J.
Vernina Adams: Todd E. Henry Esq., Philadelphia
Raghbir Singh: David E. Levine Esq., Brooklyn, N.Y.
Mohammad Khan: Stephan Mahler Esq., Kew Gardens, N.Y.Shafiq Information
Adams Information
Singh Information
Khan InformationFounders of Mcginn, Smith & Co. Inc. SentencedRead the Press Release
McGinn Will Serve 15 Years in Prison and Smith Will Serve 10 Years
UTICA, NEW YORK - Timothy M. McGinn and David L. Smith, former owners of the Albany broker-dealer McGinn, Smith & Co., Inc. were sentenced today, in United States District Court in Utica, to significant terms of imprisonment, announced United States Attorney Richard S. Hartunian, Toni M. Weirauch, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York Field Office, and Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division. McGinn was sentenced to serve 15 years in federal prison and to pay a $100,000 fine. Smith was sentenced to serve 10 years in federal prison and to pay a $50,000 fine. The defendants were convicted of conspiracy to commit mail and wire fraud, mail fraud, wire fraud, securities fraud, and filing false tax returns in February 2013, following a five-week jury trial. In addition to the prison terms and fines, U.S. District Judge David N. Hurd ordered $6,336,440 in forfeiture, a total of $5,992,800 in restitution, and 3 years of supervised release.
In sentencing McGinn, Judge Hurd said that what caused McGinn’s downfall was his arrogance in conducting business without regard for the law or the rules as long as he made money for himself and his favorite clients. In sentencing Smith, Judge Hurd said that Smith had led an impressive life and had an impressive family and friends, but what caused Smith’s downfall was going along with McGinn when he knew that what they were doing was wrong. Judge Hurd remanded both McGinn and Smith to custody to begin serving their sentences.
U.S. Attorney Hartunian said:
“As the stories told by the victims during the sentencing hearings today made clear, nothing can ever undo the terrible harm Timothy M. McGinn and David L. Smith inflicted on investors. Through false representations and material omissions, McGinn and Smith obtained investors’ hard-earned money and used it as their own. They covered their tracks by directing the creation of false accounting entries and the movement of money among accounts, and by misleading regulators. Their longstanding personal enrichment plan defrauded 841 victims of $30 million, leaving many investors devastated. The sentences imposed today send a strong message to those entrusted with investor funds that fraudulent business practices and tax cheating will not be tolerated. During the past three years, my office has charged ten people with investor fraud resulting in $64.2 million of loss to 1,676 victims. The eight defendants convicted to date were sentenced to more than 60 years in federal prison. These cases reflect our longstanding commitment to combating the corruption of the financial marketplace that shatters lives and undermines our economy. We will continue to work with all of our law enforcement partners to identify, investigate, and vigorously prosecute investor fraud cases. We are grateful for the dedication and thoroughness of IRS Criminal Investigations and the FBI in McGinn Smith and other investor fraud cases.”
Special Agent-in-Charge Weirauch stated, “In many ways, this investigation was all about trust: the trust investors place in their investment professionals and the trust that taxpayers have that their tax system will ensure that everyone pays their fair share. The defendants have now learned the cost of violating these trusts. Furthermore, today’s sentences and the earlier trial convictions will send strong messages to those who think about doing the same.”
Special Agent-in-Charge Vale stated, “We will continue to work with our partners to investigate investment fraud schemes. The resolution of this case was the direct result of outstanding teamwork between the U.S. Attorney’s Office, the Internal Revenue Service and the FBI.”
Six victims spoke at the sentencing hearings today, telling the Court that their losses represented life savings that they needed for living expenses, the support of their families, and their retirement.
According to the superseding indictment, the purpose of the conspiracy was to mislead investors and the Financial Industry Regulatory Authority, Inc. ("FINRA") regarding the safekeeping and use of investor money raised by 17 trusts, one corporation, and other entities; the risks of the trust offerings; the performance of the underlying income streams; the source of investor payments; and the improper diversion of investor money in order to obtain money from investors and enrich themselves. As a result of the defendant's conduct, the investors were not aware that the defendants had diverted approximately $4.1 million in connection with transactions related to the trusts for their own benefit and the benefit of another person.
The superseding indictment also alleged that, as part of the conspiracy, the defendants improperly diverted nearly $1 million; directed false accounting entries regarding those transactions in response to a document request from the broker-dealer's regulator, FINRA; and caused the false accounting entries to be submitted to FINRA. The alleged improper diversions fell into two categories: (a) the improper diversion of more than $473,000 of investor money from an escrow account to pay preferred clients who had unrelated investments (between May 15, 2008 and July 8, 2009); and (b) the improper diversion of $525,000 from bank accounts for three unrelated investments to pay the broker-dealer's employees (between November 14, 2008 and April 15, 2009). The superseding indictment also alleged that the defendants improperly used a corporation to conceal and disguise the true nature of the payroll diversions by passing the money from the three unrelated investments through that corporation and then to the broker-dealer. Finally, the superseding indictment alleged that the defendants misled FINRA about the preferred client diversions and the payroll diversions by (a) directing the creation of false accounting entries to conceal the true nature of these transactions in response to a document request from FINRA; and (b) causing the submission of these false accounting entries to FINRA.
Both McGinn and Smith were convicted on Counts 21 through 26 (securities fraud), which relate to the failure to disclose improperly diverted fees to investors in violation of federal securities laws. Counts 21 and 22 relate to $100,000 in fees paid in connection with TDM Verifier Trust 08, and Counts 23 through 26 relate to approximately $855,000 in fees paid in connection with Fortress Trust 08. All of these transaction fees were paid with investor money.
McGinn and Smith were also both convicted on the tax charges arising from their failure to declare the improperly diverted money on their personal tax returns for tax years 2006 through 2008 (Counts 27-29 for McGinn and Counts 30-32 for Smith). McGinn and Smith later described the money as "loans," but did not list them as such on personal financial statements. When FINRA discovered the false loan accounting entries for the diverted money, the defendants misled FINRA by directing the creation of backdated promissory notes.
Both McGinn and Smith were convicted on Count 10, and McGinn was convicted of Counts 4 through 6 and 11 through 13. Those mail and wire fraud counts relate to the Firstline Series B Trusts, which raised money from investors in connection with a loan of $2.4 million to Firstline Security, Inc., a company that generated alarm contracts. The superseding indictment alleged that the defendants did not tell investors when Firstline filed for bankruptcy and defaulted on loans. In addition, their firm sold approximately $600,000 of one of the Firstline investments without any disclosure of the bankruptcy or defaults. McGinn directed that investors receive $2 million of lulling payments by transferring money from other entities controlled by McGinn and Smith.
McGinn and Smith were both convicted on Count 14, and McGinn was convicted on Count 7. Those mail and wire fraud counts relate to the Integrated Excellence Trusts, for which the defendants raised about $1.2 million from investors in connection with a loan to benefit Integrated Excellence, Inc., which generated alarm contracts. The superseding indictment alleged that the defendants knew that the payments received from the loan were not sufficient to pay investors, but McGinn directed that investors receive lulling payments by transferring money from other entities controlled by McGinn and Smith.
McGinn and Smith were both convicted of Counts 8 and 9. Those mail fraud counts related to the improper diversion of investor money from an escrow account to pay preferred clients who had unrelated investments.
McGinn was also convicted on Counts 15 and 16. Those counts involved the diversion of approximately $142,000 of investor money from an escrow account to make payments to investors in other trusts.
Both McGinn and Smith were convicted on Count 17, which involved $35,000 Smith took directly from an escrow account holding investor funds for Integrated Excellence Sr. Trust 08. McGinn was convicted on Counts 18, 19, 20 which involved approximately $310,000 that McGinn took directly from escrow accounts holding investor funds.
This case was investigated by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation, and prosecuted by Assistant United States Attorneys Elizabeth C. Coombe, Richard D. Belliss, and Wayne A. Myers.
This case was brought in connection with President Barack Obama’s Financial Fraud Task Force, which was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes and hold accountable those who helped bring about the last financial crisis. With more than 20 federal agencies, 94 U.S. Attorney’s Offices, and state and local partners, it is 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. For more information on the task force, please visit www.StopFraud.gov.
LOCAL CONTACT: Elizabeth C. Coombe
Assistant U.S. Attorney
Tel: (518) 431-0247Fort Thompson Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury.
Patrick Scott Pomani, age 33, was indicted on July 17, 2013, for Failure to Register as a Sex Offender. Pomani appeared before U.S. Magistrate Judge Mark A. Moreno on August 5, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; a mandatory minimum period of at least 5 years up to life of supervised release, with a violation of a condition of release possibly resulting in 2 years of additional incarceration; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
If Pomani commits a new felony violation of sexual abuse, sexual exploitation and other abuse of children, transportation for illegal sexual activity and related crimes, kidnapping, or sex trafficking of children by force, fraud, or coercion while on supervised release he may be incarcerated for a mandatory minimum term of 5 years up to life for each violation.
The charge is merely an accusation, and Pomani is presumed innocent until and unless proven guilty.
The Indictment charges that Pomani failed to register as a sex offender between the 1st day of October, 2012 and the 23rd day of January, 2013, as well as between the 28th day of April, 2013 and the 16th day of July 2013.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Pomani was remanded to the custody of the U.S. Marshals Service. A trial date has been set for September 24, 2013.Former Sevierville, Tenn. Resident Convicted of Tax EvasionRead the Press Release
The Justice Department and the Internal Revenue Service (IRS) announced today that Jimmie Duane Ross of Lehi, Utah, and formerly of Sevierville, Tenn., was convicted today of five counts of tax evasion following a jury trial in the U.S. District Court for the Eastern District of Tennessee.
According to the indictment and evidence produced at trial, Ross won a monetary award of approximately $840,000 in 1999 after arbitration of an employment dispute with a former employer. Ross thereafter failed to pay the full amount of his income tax due and owing for 1999 and evaded the tax by filing a false mortgage on his residence, filing a false lien on his vehicle, dealing extensively in cash and directing funds to an offshore account. In addition, from 2004 through 2007, Ross earned commission income for referring clients to a purported Nevis-based investment company and evaded his taxes by using nominees and other means.
Following the jury verdict, U.S. District Judge R. Leon Jordan ordered that Ross be detained and scheduled the sentencing for Jan. 14, 2014. On each of the five counts of conviction, Ross faces a maximum sentence of five years in prison and a maximum fine of $250,000.
The case was investigated by Special Agents of IRS – Criminal Investigation. Trial Attorneys Kevin Lombardi and Kimberly Shartar of the Justice Department’s Tax Division prosecuted the case.
Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Former Hospital Facilities Director Sentenced to 14 Months in Prison for Improper Use of Purchasing CardRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 14 months incarceration and 3 years supervised release on his conviction of wire fraud, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Timothy L. Mangis, 49, of Imperial, PA.
According to the information presented to the court, Mangis, the former Facilities Director at Magee-Womens Hospital of UPMC, unlawfully used a UPMC P-card to obtain merchandise, including auto repair services for his cars, and electronic equipment and building materials at retailers such as Pep Boys, Home Depot and Best Buy for personal use. Unauthorized use of the P- card exceeded $70,000 as determined by the Government.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service for the investigation leading to the successful prosecution of Timothy L. Mangis.
Former Executive Director of Taos County Housing Authority and Husband Plead Guilty to Federal Conspiracy ChargeRead the Press Release
ALBUQUERQUE – Carmella Martinez, 42, and her husband Paul G. Martinez, 44, both of Arroyo Seco, N.M., each pleaded guilty this morning to conspiracy to commit theft concerning programs receiving federal funds and to commit theft of government property. The guilty pleas were announced by U.S. Attorney Kenneth J. Gonzales, David A. Montoya, Inspector General, U.S. Department of Housing and Urban Development (HUD), and Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI.
Carmella and Paul Martinez were charged in Dec. 2012 in a 49-count federal indictment with conspiracy, theft from programs receiving federal funds, and theft of government property. According to the indictment, between Nov. 2003 and Dec. 2011, Carmella and Paul Martinez stole federal funds provided by HUD to the Taos County Housing Authority (TCHA) for a housing program that provides affordable housing for low-income Americans. During that time, Camella Martinez was employed by the TCHA, initially as a Financial Specialist and later as its Executive Director.
HUD is a federal agency whose core mission is to make quality, affordable housing accessible to all Americans. It oversees and funds programs designed to provide affordable housing to low-income Americans, including the Housing Choice Voucher Program which is commonly referred to as “Section 8.” Through the Section 8 Program, HUD pays rent subsidies known as “Housing Assistance Payments” (HAP) to approved property owners and landlords on behalf of eligible low-income beneficiaries. According to the indictment, the TCHA administers the Section 8 Program on behalf of HUD in Taos County and receives approximately $2.8 million in funds annually from HUD.
According to the indictment, while employed by the TCHA, Carmella Martinez was responsible for processing HAP checks to approved Section 8 property owners and landlords and providing preliminary approval of requests for rent subsidies to property owners and landlords under the Section 8 Program. She abused her position with TCHA by conspiring with her husband to engage in the theft of Section 8 housing funds. Carmella Martinez stole the money by issuing fraudulent HAP checks for Section 8 housing assistance to payees, including to Paul Martinez and to bank accounts held by her and Paul Martinez. Carmella and Paul Martinez then presented the fraudulent checks for payment at various locations.
During today’s proceedings, Camella and Paul Martinez each pleaded guilty to Count 1 of the indictment, charging them with conspiracy to commit theft concerning programs receiving federal funds and to commit theft of government property, and generally admitted the allegations in the indictment.
In her plea agreement, Camella Martinez admitted that she began issuing fraudulent, duplicate Section 8 HAP checks for the benefit of herself and her husband in 2000. She further admitted that in 2003, Paul Martinez began conspiring with her to steal federal funds by engaging in a scheme to issue and to present fraudulent HAP checks for their mutual benefit. Carmella Martinez admitted that she and her husband engaged in their unlawful scheme until Dec. 2011, when they learned they were the subjects of a criminal investigation. Carmella Martinez acknowledged that she and her husband stole at least $786,014.04 in federal funds through their unlawful scheme.
In his plea agreement, Paul Martinez admitted that he began conspiring with his wife to steal funds from TCHA, a program that receives federal funds, in 2003, and that their scheme continued until Dec. 2011, when they learned about the criminal investigation that led to the indictment against them.
At their sentencing hearings, which have yet to be scheduled, Camella and Paul Martinez each face a maximum penalty of five years in federal prison and a $250,000 fine. Under the terms of their plea agreements, the couple will be required to pay at least $786,014.04 in restitution to the victims of their criminal activities. The United States will move to dismiss the remaining 48 counts of the indictment after Camella and Paul Martinez have been sentenced.
This case was investigated by the HUD Office of Inspector General and the Albuquerque Division of the FBI, and is being prosecuted by Assistant U.S. Attorney Shana B. Long.
Former Arkansas State Police Lieutenant Indicted by Federal Grand Jury on Drug Distribution ChargesRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Randall C. Coleman, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), announced today that a federal grand jury returned an indictment charging former Arkansas State Police Lieutenant Sedrick L. Reed, age 43, and Lamont M. Johnson, age 45, with federal narcotics and firearms charges. The charges stem from an investigation by the Federal Bureau of Investigation’s ArkTrust Public Corruption Task Force and Little Rock Police Department with the full cooperation of the Arkansas State Police. The investigation was also referred to as an Organized Crime and Drug Enforcement Task Force (OCDETF) operation “Diverted Justice.”
The charges in the indictment and potential penalties are as follows:
Count One Reed & Johnson. Drug Conspiracy, 21 U.S.C. § 846. NLT 10 years and up to life imprisonment; NLT 5 years and up to life supervised release; Up to a $10 million fine.
Count Two Reed & Johnson. Cocaine Distribution, 21 U.S.C. § 841(a)(1). Up to 20 years imprisonment; NLT 3 years and up to life supervised release; Up to a $1 million fine.
Count Three Reed. Possession with Intent to Distribute Cocaine, 21 U.S.C. § 841(a)(1). NLT 5 years and up to 40 years imprisonment; NLT 4 years and up to life supervised release; Up to a $5 million fine.
Count Four Reed. Possession with Intent to Distribute Heroin, 21 U.S.C. § 841(a)(1). NLT 5 years and up to 40 years imprisonment; NLT 4 years and up to life supervised release; Up to a $5 million fine.
Count Five Johnson. Felon in Possession of a Firearm, 18 U.S.C. § 922(g)(1). NMT 10 years imprisonment; NMT 3 years supervised release; Up to a $250,000 fine.
Count Six Johnson. Possession of a Defaced Firearm, 18 U.S.C. 922(k). NMT 5 years imprisonment; NMT 3 years supervised release; Up to a $250,000 fine.
Count Seven Johnson. Possession of a Firearm in Furtherance of a Drug Trafficking Crime, 18 U.S.C. § 924(c). NLT 5 years and up to life imprisonment; NMT 5 years supervised release; Up to a $250,000 fine.
Count Eight Reed. Possession of a Firearm in Furtherance of a Drug Trafficking Crime, 18 U.S.C. § 924(c). NLT 5 years and up to life imprisonment; NMT 5 years supervised release; Up to a $250,000 fine.
The indictment also contains four forfeiture allegations related to firearms and assets, including $30,073 in U.S. Currency seized from Reed’s person and at Reed’s residence, and $57,595 in U.S. Currency seized at Johnson’s residence.
Reed and Johnson will appear before United States Magistrate Judge H. David Young for Plea and Arraignment later this month, at which time a trial date will be set. Reed and Johnson previously appeared before United States Magistrate Judge J. Thomas Ray for an Initial Appearance on a criminal complaint charging them with the conduct underlying Count Two.
On July 23, 2013, following a hearing, Judge Ray entered an order of detention pending trial for Reed, finding by clear and convincing evidence that Reed presents a danger to the community and by a preponderance of the evidence that Reed presents a risk of flight. Also on July 23, 2013, following the United States’ presentation of evidence in support of detention, Judge Ray entered an order of detention without prejudice to Johnson presenting evidence at a later date.
The investigation was conducted by the FBI’s ArkTrust Public Corruption Task Force with assistance from the Little Rock Police Department. It is being prosecuted by Assistant United States Attorneys Julie Peters and Chris Givens.
An indictment contains only allegations. The defendants are presumed innocent unless and until proven guilty.
Florida Man Charged for Operating Fraudulent Investment SchemesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, the Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), today announced securities and wire fraud charges against STEVEN STALTARE for his alleged involvement in two separate fraudulent investment schemes. As alleged, in both schemes, STALTARE misled victim investors through numerous misrepresentations about how their money would be invested, and also failed to disclose that he previously had been convicted of securities fraud. In the course of operating both schemes, STALTARE allegedly misappropriated for his personal benefit more than $600,000 of investor funds. STALTARE was arrested this morning in Land O’ Lakes, Florida, and was presented today in federal district court in the Middle District of Florida.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Steven Staltare veered from one fraudulent scheme to another, leaving a trail of investors as the victims of his false promises and outright lies. Today, the series of self-serving frauds he allegedly perpetrated ends with his arrest.”
New York USPIS Inspector-in-Charge Philip R. Bartlett said: “Mr. Staltare's alleged offense is a classic example of greed overcoming honest business practices. He preyed upon the trust of his investors, only to use their funds for his own personal benefit. His undoing came, however, when he underestimated the resolve and tenacity of Postal Inspectors along with their law enforcement counterparts to bring to justice anyone who commits a crime.”
According to the Complaint filed in Manhattan federal court:
From at least 2011 through 2012, STALTARE defrauded two investors (“Victim-1” and “Victim-2”) in connection with the transfer of shares of stock in Dematco, Inc. (“Dematco”). In late 2011, STALTARE facilitated Victim-1’s sale of hundreds of thousands of shares of Dematco stock for $70,000. Around the same time, STALTARE asked Victim-2 to lend him approximately $150,000 so that STALTARE could purchase shares of Dematco stock. In consideration of this loan, STALTARE promised Victim-2 repayment of the loan within three weeks; a third of the profits from the eventual sale of the Dematco shares; and Dematco stock certificates (obtained from Victim-1) as collateral for the loan. Ultimately, STALTARE did not pay Victim-1 the $70,000, and he did not repay Victim-2 for the $150,000 loan, or provide any profits from the sale of Dematco stock. Instead, STALTARE transferred Victim-1’s shares in Dematco to Victim-2 (as collateral for the loan), and misappropriated the funds provided by Victim-2 for his own personal benefit.
From at least 2012 through 2013, STALTARE defrauded two other investors (“Victim-3” and “Victim-4”) by misappropriating funds intended for investment in the stock of various companies, including Dematco, Preventia, Inc. (“Preventia”), First Choice Healthcare Solutions, Inc. (“First Choice”), and Savtira Corporation (“Savtira”). STALTARE agreed to invest approximately $25,000 for Victim-3 in Preventia stock, promising significant investment returns. STALTARE also agreed to invest approximately $357,000 for Victim-4 in various securities, including stock in Dematco, Preventia, First Choice, and Savtira, again promising significant investment returns. But contrary to his representations to Victim-3 and Victim-4, STALTARE misappropriated their investments for his own personal benefit.
In the course of effectuating these fraudulent schemes, STALTARE defrauded victims in excess of $600,000 from 2011 through 2013.
STALTARE, 48, of Land O’ Lakes, Florida, has been charged with two counts of securities fraud and two counts of wire fraud. The securities fraud and wire fraud charges each carry a maximum term of 20 years in prison.
Mr. Bharara praised the investigative work of the USPIS. Mr. Bharara 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 U.S. Attorney 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 is 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.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Steve Lee is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Five Puerto Rico Police Department Officers Indicted on Federal Civil Rights, Obstruction of Justice and Perjury ChargesRead the Press Release
A second superseding indictment against five Puerto Rico Police Department (PRPD) officers was announced today by Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division; Rosa Emilia Rodriguez-Velez, U.S. Attorney for the District of Puerto Rico; and Carlos Cases, Special Agent in Charge of the FBI San Juan Field Office.
According to the indictment unsealed today, PRPD Lt. Erick Rivera Nazario, Officer David Colon Martinez and Officer Angel Torres Quinones were indicted on civil rights charges alleging that they violated the constitutional rights of Jose Irizarry Perez while he was celebrating the local election results at the Las Colinas housing development in Yauco, Puerto Rico, on Nov. 5, 2008. Rivera was also charged with violating the civil rights of Irizarry Perez’s father, Jose Irizarry Muniz. In addition, Rivera, Colon, Officer Miguel Negron Vazquez and Sgt. Antonio Rodriguez Caraballo were indicted for obstruction of justice and making false statements to the FBI and a federal grand jury. Torres was indicted for obstruction of justice by providing misleading information to the local prosecutor.
According to the twenty-count second superseding indictment, while Colon held and restrained Irizarry Perez, Rivera and another PRPD officer physically struck Irizarry Perez and assaulted him with a police baton, which resulted in bodily injury to him. In addition, the second superseding indictment charges Torres with striking Irizarry Perez with a police baton, which also resulted in bodily injury to him. The second superseding indictment alleges that Rivera, Colon and Torres thereby deprived Irizarry Perez of his right to be free from unreasonable seizures by those acting under color of law. Although Irizarry Perez died as a result of injuries he sustained on Nov. 5, 2008, the second superseding indictment does not include charges that his death resulted from the defendants’ conduct. Rivera, who was a supervisor at the time of the incident, was also charged with failing to keep Irizarry Perez and his father from harm when an officer whom Rivera supervised assaulted the victims in Rivera’s presence.
In addition, the second superseding indictment alleges that Rivera, Colon, Negron and Rodriguez made false statements concerning the incident to the FBI and to the federal grand jury which had been investigating the incident. Colon and Negron were also charged with obstruction of justice for submitting false police reports and for providing misleading information to the Puerto Rico prosecutor that initially investigated the matter. Rodriguez and Torres were also charged with obstruction of justice for providing misleading information to the Puerto Rico prosecutor, and Rivera was additionally charged with obstruction of justice for submitting a false police report.
Each of the civil rights charges is punishable by a maximum term of ten years in prison. Each count charging obstruction of justice is punishable by a maximum term of twenty years in prison. Each count charging making false statements to the FBI and perjury is punishable by a maximum term of five years in prison. In addition, every charge in the indictment carries a maximum fine of $250,000.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
This case is being investigated by the San Juan Division of the FBI and is being prosecuted by Assistant U.S. Attorney Jose A. Contreras from the U.S. Attorney’s Office for the District of Puerto Rico and Senior Litigation Counsel Gerard Hogan and Trial Attorney Shan Patel from the Civil Rights Division of the U.S. Department of Justice.
Five Charged with Conspiring to Sell Heroin, Prescription Drugs Out of Newark, N.J., Retail StoreRead the Press Release
NEWARK, N.J. – Five Newark residents are charged as players in a conspiracy to sell heroin and prescription pills out of a retail store in the city, U.S. Attorney Paul J. Fishman announced.
Lamont Vaughn, 30; Jarez Barron, 25; Theresa Barron, 24; Latoyia Vaughn, 29; and Felicia Holt, 27, are each charged by complaint with two counts: conspiring to distribute and possess with intent to distribute heroin and oxycodone. Federal agents arrested four of the defendants this morning at their homes. Latoyia Vaughn, Lamont Vaughn’s sister, remains at large.
Agents seized two firearms from Lamont Vaughn’s home, where they found him attempting to flush what appeared to be drugs down the toilet. Holt allegedly threw drugs out the window of her home as she fled from law enforcement, but was apprehended a short time later.
The arrested defendants are expected to make their initial appearances this afternoon before U.S. Magistrate Judge Cathy Waldor in Newark federal court.
For at least a year beginning in August 2012, the defendants allegedy worked together to sell heroin and prescription pills out of a retail store in Newark. According to the complaints, they were observed and recorded by law enforcement discussing business hours and inventory and dealing bricks of heroin as well as Endocet – which they referred to as “bananas” – and other pills.
The conspiracy to distribute heroin count carries a maximum potential penalty of 40 years in prison, a minimum term of five years in prison, and a maximum fine of $5 million. The conspiracy to distribute oxycodone count carries a maximum potential penalty of 20 years in prison and a $1 million fine.
U.S. Attorney Fishman praised special agents and officers of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, as well as the New Jersey State Police Street Gangs North Unit with the investigation leading to the arrests.
The government is represented by Senior Litigation Counsel Margaret Ann Mahoney and Assistant U.S. Attorney Francisco Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Vaughn, Lamont et al. Complaint
Holt ComplaintFather and Son Felons Sent to Prison for Ammunition and Drug ChargesRead the Press Release
LAREDO, Texas – Rolando Rubio and his father, Antonio Rubio Jr., both of Laredo, have been ordered to prison for their respective pleas to cocaine trafficking and unlawful possession of ammunition, United States Attorney Kenneth Magidson announced today. Both entered guilty pleas in separate indictments on Oct. 15, 2012.
Today, U.S. District Judge George P. Kazen sentenced Rolando Rubio, 33, to a term of 235 months in federal prison for possessing with the intent to distribute 6.1 kilograms of cocaine. At the hearing, additional information was produced including that Rubio called his mother and other family members while he was in federal detention to contact his drug buyers for additional drug sales or for money owed for prior drug sales. Another matter presented at the hearing was Rubio’s alleged membership in the Mexican Mafia prison gang. In handing down the sentence, Judge Kazen noted he was taking into account the totality of Rubio’s criminal lifestyle, including Rubio’s bragging that he was "immune from prosecution because of his last name." The comment was a reference to his defense attorney, who was Webb County District Attorney from 1989 to 2008. "The time is NOW to pay the price," Judge Kazen told Rubio upon handing him the sentence. He was further ordered to serve five years of supervised release following completion of the prison term.Earlier this year, visiting U.S. District Judge Ivan Lemelle ordered Antonio Rubio, 68, to serve 30 months in federal prison to be followed by a three-year-term of supervised release.
Rolando Rubio was arrested by federal authorities on Aug. 8, 2012, for unlawful possession of a firearm and ammunition. On the evening of his arrest, and while at the Webb County Jail, Rubio telephoned family members and informed them he had hidden cocaine in his parent’s home. Agents conducted a search which resulted in the discovery of 6.1 kilograms of cocaine hidden in a back room of his parent’s home, some of which had already been pre-packaged and sorted according to weight by Rubio for street level distribution.
Antonio Rubio Jr. entered a guilty plea to unlawful possession of ammunition. He had been arrested following an investigation into his illegal actions related to drug trafficking and firearm offenses. Upon his arrest, a firearm and several rounds of ammunition were found in his home.
Both men have remained in custody since their arrests.
The investigation leading to the charges in these cases was conducted by the Laredo Police Department Narcotics Unit, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, U.S. Marshals Service and the Webb County District Attorney’s Office. Assistant United States Attorney Homero Ramirez prosecuted the cases.Evansville Man Sentenced to 15 Years in Prison After Child Exploitation ConvictionRead the Press Release
INDIANAPOLIS – United States Attorney Joseph H. Hogsett announced this afternoon the sentencing of Evansville resident Floyd Patrick Williams, age 48, to 15 years in federal prison following his admission that he attempted to produce child pornography. Hogsett said these results come as he continues Operation Community Watch, a new effort which aims to reduce the abuse of Hoosier children through new investigative techniques and aggressive prosecution.
“Working with our Operation Community Watch partners in Vanderburgh County and around the state, we are sending a warning to those who seek to exploit Hoosier children,” Hogsett said. “If you engage in this type of activity, there is no place to run or hide – we will find you, and you will be brought to justice.”
According to court documents, an Evansville Police Department Officer observed the defendant at the Evansville Central Library in April 2012. Over the course of a few minutes, the officer watched as the defendant on multiple occasions followed young boys into the bathroom of the library. A witness reported to the officer that Williams was looking between the stall openings at the young boys, and when questioned, one of the boys indicated Williams had put a camera phone over the stall and appeared to be taking pictures of the victim.
Williams was later arrested by the Evansville Police Department, at which time officers found the defendant to be in possession of both a phone and a “thumb drive.” A search of those items revealed a number of video recordings of minor boys urinating in public restrooms, including the Evansville Central Library. A search of Williams’ criminal history revealed a 2007 felony voyeurism conviction in Indianapolis for taking photographs of young boys in public restrooms.
According to Assistant U.S. Attorney Todd S. Shellenbarger, the defendant was ordered by Chief U.S. District Judge Richard L. Young to serve lifetime supervised release at the end of his prison term. These charges were the result of an investigation by the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, the Federal Bureau of Investigation’s Cyber Crimes Task Force, along with the Evansville Police Department.
This prosecution comes as Hogsett has announced a comprehensive crackdown on child exploitation in Indiana. Earlier this year, he launched “Operation Community Watch,” which will allow prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials.
This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 52 defendants, an increase of 37% over the prior year, and 49 defendants were convicted and sentenced. These are all-time records for the Office. The Office conviction rate for PSC cases was 100%, a level it has been at since 1991.
The greatest measure of the PSC program’s impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last year, the U.S. Attorney’s Office successfully identified more than 120 child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.
Led nationally by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Eleven Charged in Alleged Illegal Pharmacological Import and Distribution SchemeRead the Press Release
ALEXANDRIA, Va. – Seven arrests have been made in a coordinated operation spanning several states, related to the unsealing of a 17-count indictment and criminal complaint involving Gallant Pharma International Inc., an allegedly unlicensed company that is accused of distributing misbranded prescription drugs from its headquarters in Crystal City, Virginia, and an office in Springfield, Virginia. The individuals arrested were:
Syed “Farhan” Huda, 38, of Arlington, Virginia;
Deeba Mallick, 36, of Arlington, Virginia;
Anoushirvan R. Sarraf, 47, of Rockville, Maryland;
Talib Khan, 42, of Montreal, Canada, and Barbados;
Harvey Whitehead, 67, of Troy, Michigan;
Lisa Coroniti, 46, of Devon, Pennsylvania; and
Robert J. Sparks, 30, of Springfield, Virginia.
Munajj Rochelle, 36, a dual U.S.-Canadian citizen, is currently incarcerated in Montreal, Canada, on unrelated charges. Arrest warrants have been issued for the remaining three defendants, Robert Wachna of Ottawa, Canada, Mirwaiss Aminzada, 43, of Montreal, Canada.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Antoinette V. Henry, Special Agent in Charge, FDA’s Office of Criminal Investigations, Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service, and Special Agent in Charge John P. Torres, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) Washington, made the announcement after the four defendants arrested in the Eastern District of Virginia – Huda, Mallick, Sarraf, and Sparks – made their initial appearances before Judge John F. Anderson.
According to the 17-count indictment unsealed today, Khan and Huda were principals of Gallant Pharma, which allegedly began illegally importing prescription drugs, including intravenous chemotherapy drugs and injectable cosmetics, into the United States in or around August 2009. Gallant Pharma represented itself as a “Canadian company” and told potential customers that it sold drugs from Canada. The indictment alleges, however, that Khan, with the assistance of Huda, Mallick, Aminzada, and others, acquired drugs from other parts of the world, including India, Switzerland, and Turkey. These drugs were allegedly not manufactured and packaged in accordance with FDA requirements and, in some cases, were not approved by the FDA for use in the United States. The indictment states that Gallant Pharma imported the drugs with the assistance of co-conspirators in Canada and the United Kingdom, including Aminzada, who broke large shipments into many small packages, mislabeled the contents of packages, and addressed deliveries to Dr. Sarraf at his medical practice in McLean, Virginia, in order to lessen scrutiny by Customs and Border Protection. Initially, Gallant Pharma allegedly operated out of the apartment of Huda and his wife, Mallick, in Crystal City, where Huda is alleged to have served as the day-to-day head of Gallant Pharma in the United States and Mallick had primary responsibility for processing sales invoices and customer payments. Until June 2013, Gallant Pharma allegedly stored the misbranded drugs at an office in Springfield, Virginia.
According to the indictment, Gallant Pharma was not licensed to distribute prescription drugs in the United States. Nonetheless, Gallant Pharma is alleged to have sold drugs to doctors, hospitals, and medical practices across the United States, generating more than $8.6 million in revenue since August 2009. Gallant Pharma allegedly employed a cadre of sales representatives with dedicated sales territories across the United States.
The defendants are charged with the following offenses: conspiracy to commit importation fraud, introduction of misbranded drugs into interstate commerce, unlicensed medical wholesaling, wire fraud, and to defraud the FDA, each of which is punishable by a maximum term of imprisonment of five years; importation contrary to law, which is punishable by a maximum term of imprisonment of twenty years; introduction of misbranded drugs into interstate commerce, which is punishable by a maximum term of imprisonment of three years; unlicensed medical wholesaling, which is punishable by a maximum term of imprisonment of three years; wire fraud, which is punishable by a maximum term of imprisonment of twenty years; and monetary transactions with criminally derived proceeds, which is punishable by a maximum term of imprisonment of ten years.
The investigation was conducted by FDA Office of Criminal Investigations, Drug Enforcement Agency Group 33 Diversion Task Force, Department of Homeland Security Office of Immigration and Customs Enforcement, the United States Postal Inspection Service, with assistance from the Arlington County Police Department. Assistant United States Attorneys Lindsay A. Kelly, Alexander T.H. Nguyen, and Ryan K. Dickeyare prosecuting the case on behalf of the United States.
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.govEl Salvadoran Sentenced to Forty Years in Federal Prison for Armed Robbery and Felony Murder ConvictionRead the Press Release
ALBUQUERQUE – Marvin Aguilar-Lopez, 26, of El Salvador, was sentenced earlier today to 40 years in federal prison for his armed robbery and felony murder conviction. He will be deported after he completes his prison sentence. Aguilar-Lopez’s sentence was announced by U.S. Attorney Kenneth J. Gonzales, Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and Chief Allen Banks of the Albuquerque Police Department.
Aguilar-Lopez and his co-defendants, Pablo De Leon Ortiz, 34, and Francisco Melgar-Cabrera, 30, both of El Salvador, were indicted in Oct. 2009, and charged with robbery, felony murder and firearms offenses in a nine-count indictment stemming from the armed robbery of the Denny’s Restaurant located at 1602 Coors Blvd. NW in Albuquerque on June 20, 2009, and the murder of Stephanie Anderson, a cook at the restaurant. Aguilar-Lopez and De Leon Ortiz, who had been in state custody since the day of the robbery and murder, were arrested on the federal charges on Oct. 19, 2009.
On April 14, 2010, a ten-count superseding indictment was filed adding Jose “Tito” Humberto Melgar-Cabrera, the brother of Francisco Melgar-Cabrera, as a defendant. Jose Melgar-Cabrera was charged for being an accessory after the fact for assisting Francisco Melgar-Cabrera to avoid apprehension, and he was arrested on April 21, 2010.
A 14-count second superseding indictment was filed on October 14, 2010. The new indictment added four new robbery and firearms offenses against De Leon Ortiz, Aguilar-Lopez and Francisco Melgar-Cabrera. The new charges arose out of the armed robbery of the Lone Star Steakhouse & Saloon located at 10019 Coors Blvd. NW in Albuquerque on June 13, 2009.
On Sept. 30, 2011, Aguilar-Lopez entered guilty pleas to Counts 3 and 4 of the second superseding indictment charging him with the armed robbery of the Denny's Restaurant, and the felony murder of Ms. Anderson. His sentencing hearing was delayed by competency proceedings which concluded with judicial findings of legal competency.
Jose Melgar-Cabrera pleaded guilty to Count 10 of the second superseding indictment charging him with being an accessory after the fact on Sept. 23, 2011, and admitted assisting his brother to flee to avoid apprehension on the day of the armed robbery of the Denny's Restaurant and Ms. Anderson's felony murder. Melgar-Cabrera was sentenced to a 48-month term of imprisonment on Dec. 14, 2011, and faces deportation after he completes his prison sentence.
On Sept. 30, 2011, De Leon Ortiz entered a guilty plea to Counts 4 and 13 of the second superseding indictment, charging him with a felony murder committed during the June 20, 2009 armed robbery of an Albuquerque-area Denny's Restaurant, and the June 13, 2009 armed robbery of an Albuquerque-area Lone Star Steakhouse and Saloon. De Leon Ortiz was sentenced to 35 years in federal prison on March 13, 2013, and will be deported after he completes his prison sentence.
Francisco Melgar-Cabrera has yet to be apprehended and is considered a fugitive. The charges in the second superseding indictment against Francisco Melgar-Cabrera are only accusations, and he is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Albuquerque Police Department, the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Albuquerque Division of the FBI. The case was prosecuted by Assistant U.S. Attorneys Louis E. Valencia, Presiliano A. Torrez and Roberto D. Ortega.
Eden Prairie Man Indicted for Embezzling Millions of Dollars from His Long-time EmployerRead the Press Release
MINNEAPOLIS—A federal indictment unsealed earlier today charges a 56-year-old Eden Prairie man with embezzling millions of dollars from his long-time employer. The indictment, which was filed on August 5, 2013, charges John Joseph Waters, Jr., with four counts of mail fraud, 16 counts of wire fraud, three counts of income tax evasion, and three counts of filing a false income tax return. The indictment was unsealed today, following Waters’ initial appearance in federal court. The indictment alleges that from at least 1999 through at least March 2012, Waters embezzled the funds to support his personal lifestyle.
The victim of the embezzlement is a former senior executive and shareholder at West Publishing, for whom Waters worked from approximately 1994 to1996. After retiring in 1996, the victim hired Waters to manage his numerous personal, business, and philanthropic pursuits. According to the indictment, Waters served in that capacity from 1996 to March 2009, during which time he was responsible for the oversight and management of the victim’s considerable assets, including numerous bank, trust, and investment accounts. To that end, Waters reportedly obtained signing authority on a number of the accounts.The indictment alleges that Waters used that signing authority to transfer millions of dollars from his employer’s accounts to accounts controlled by Waters, all without his employer’s knowledge or permission. To conceal the scheme, Waters reportedly used a bank account he controlled in the name of a deceased foreign exchange student, made false entries in his employer’s books and records, and directed others to refrain from reviewing certain bank statements.
After Waters left his position and the alleged embezzlement was uncovered, he purportedly discouraged his former employer from reporting it to authorities. He allegedly went so far as to threaten his former employer, warning him that harmful information about him would be revealed if he turned Waters in. The indictment asserts that, as part of the scheme, in March of 2012, Waters commenced a civil lawsuit against his victim, falsely alleging that the funds he took while an employee constituted payment of “deferred compensation” owed him pursuant to an oral modification of his employment agreement.
The indictment also states that Waters failed to report as income on his 2007, 2008, and 2009 federal tax returns the millions of dollars he embezzled. Accordingly, he allegedly filed false tax returns for those three years in addition to committing tax evasion.
If convicted, Waters faces a potential maximum penalty of 20 years in prison on each count of mail and wire fraud, five years on each count of income tax evasion, and three years on each count of filing a false tax return. Any sentence would be determined by a federal district judge.
This case is the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations. It is being prosecuted by Assistant United States Attorney William J. Otteson.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.
Eagle Butte Man Convicted of Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that Stanley Morrison, age 32, of Eagle Butte, South Dakota, was convicted by a federal jury on July 30, 2013, for Assault Resulting in Serious Bodily Injury.
A presentence investigation was ordered, and a sentencing date was set for October 28, 2013. The defendant was remanded to the custody of the U.S. Marshals Service.
This conviction carries a maximum penalty of 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release; and a $100 special assessment. Restitution may also be ordered.
Morrison was indicted by a federal grand jury in May 2013 for an assault that occurred in January 2013 when Morrison struck the victim with his fists, causing the victim serious bodily injury.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.Dewitt Couple Charged in Cocaine SeizureRead the Press Release
GRAND RAPIDS, MICHIGAN – Patrick A. Miles, United States Attorney for the Western District of Michigan; Rodney M. Charles, Supervisory Agent in Charge of the Lansing, Michigan, FBI office; and Detective First Lieutenant Timothy Gill, Section Commander of the Tri-County Metro Narcotics Squad in Lansing, today announced the arrest and charge of Roberto Cantu, Jr., age 39, and Lindsay Ann Jones, age 30, as a result of the seizure of nearly a kilogram of cocaine and other evidence from their residence in DeWitt, Michigan, on August 1, 2013, pursuant to a search warrant. Cantu and Jones were arrested at that time and initially charged in a criminal complaint with possession of 500 grams or more of cocaine with intent to distribute. On August 6, 2013, Cantu and Jones were indicted on that offense by a federal grand jury in Grand Rapids. Both of them have been released on bond. The case has been assigned to the Hon. Paul L. Maloney, Chief District Judge, for further proceedings. If convicted on that charge, Cantu and Jones face a maximum penalty of not less than five years up to 40 years in prison, a $5,000,000 fine, and at least four years of supervised release.
The arrest and indictment were the result of an ongoing Drug Task Force investigation in the Lansing, Michigan, area by the FBI and Tri-County Metro Narcotics Squad. The investigation is continuing. The case is being prosecuted by Assistant U.S. Attorney John Bruha.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Delbert Dean Spear Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on August 7, 2013, before Senior U.S. District Judge Jack D. Shanstrom, DELBERT DEAN SPEAR, a 25-year-old resident of Crow Agency and an enrolled member of the Northern Cheyenne Tribe, was sentenced to a term of:
Prison: 33 months
Special Assessment: $100
Supervised Release: 3 years
SPEAR was sentenced in connection with his guilty plea to assault with a dangerous weapon.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On October 6, 2012, law enforcement responded to the scene of a stabbing outside of Crow Agency, within the exterior boundaries of the Crow Indian Reservation. An adult male victim had been stabbed approximately seven times in the torso with a knife. The victim was life-flighted to Billings for medical care.
The victim reported that he and a group of people, including SPEAR, were drinking and driving together until the car ran out of gas. Everyone continued drinking until, at some point, the victim and SPEAR started arguing. Both got out of the car, and then SPEAR came at the victim with a knife as he stood beside the car. SPEAR stabbed him multiple times in the chest area until he stumbled and fell. SPEAR then stabbed him in the back area. After the stabbing, the victim walked to a house where he received help.
When questioned, SPEAR admitted that he stabbed the victim and, in a handwritten statement, wrote that he stabbed the victim seven times.
The victim suffered two stab wounds to the right lower chest that deflated his lung and hit his liver, four stab wounds to his right shoulder area, and one stab wound to his right triceps area.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SPEAR will likely serve all of the time imposed by the court. In the federal system, SPEAR does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Bureau of Indian Affairs and the Federal Bureau of Investigation.
David Russell Hargrove Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on August 7, 2013, before Senior U.S. District Judge Jack D. Shanstrom, DAVID RUSSELL HARGROVE, a 33-year-old resident of Livingston, was sentenced to a term of:
Prison: 72 months
Special Assessment: $100
Forfeiture: computer
Supervised Release: 30 years
HARGROVE was sentenced in connection with his guilty plea to possession of child pornography.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
Between approximately 2010 and December 2011, in Livingston, HARGROVE possessed computer files containing images of child pornography.
After executing a search warrant at HARGROVE's residence, law enforcement analyzed his computer and located and identified child pornography images and videos. HARGROVE admitted to using the peer-to-peer file sharing program Limewire and searching for terms such as "father/daughter." He admitted to knowing some images were child pornography. The images involved prepubescent minors engaged in sadistic or masochistic conduct. During the analysis of HARGROVE's computer, law enforcement also located child pornography in a separate folder on the desktop.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HARGROVE will likely serve all of the time imposed by the court. In the federal system, HARGROVE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Montana Internet Crimes Against Children (ICAC) Task Force.
Crownpoint Woman Pleads Guilty to Federal Involuntary Manslaughter Charge Involving the Death of a ChildRead the Press Release
ALBUQUERQUE – Sherie Rena Pete, 24, an enrolled member of the Navajo Nation who resides in Iyanbito, N.M., pleaded guilty this morning to a felony information charging her with involuntary manslaughter.
Pete was arrested on May 14, 2013, on a criminal complaint charging her with involuntary manslaughter based on a single motor vehicle crash on May 5, 2013, in Iyanbito, which is located on the Navajo Indian Reservation that resulted in the death of a three-year old child. Two other individuals were injured as a result of the crash.
In her plea agreement, Pete admitted killing the victim while driving under the influence of alcohol. Pete admitted that she had been drinking alcohol before driving her vehicle off the roadway, overcorrecting, and flipping the vehicle one and a half times.
Pete has been in federal custody since her arrest and remains detained pending her sentencing hearing. At sentencing, Pete faces up to eight years in federal prison and will be required to pay restitution to the victims of her criminal conduct.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety, and is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
Corporate Lawyer Sentenced to 24 Months’ Imprisonment on Convictions for Money Laundering and Securities Fraud ConspiracyRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, New York, Martin Weisberg, a former corporate partner in the New York office of the international law firm Baker & McKenzie LLP, was sentenced to 24 months’ imprisonment on his conviction for money laundering and for his conviction on conspiracy to commit securities fraud, to run concurrently. As a further part of his sentence, Weisberg was ordered to pay $297,500 in restitution, $250,000 in forfeiture, and a $200 special assessment, and is to serve three years of supervised release following the completion of his prison term. Weisberg must surrender to the Bureau of Prisons by November 6, 2013.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office. The sentence was imposed by United States District Judge Nicholas G. Garaufis.
“A license to practice law is not a license to violate it. As a noted attorney, Weisberg held a position of trust and had the respect of his peers. Instead of using his talents to provide wise counsel, he lied to and stole from his own clients, lied to the Securities and Exchange Commission, and betrayed the investing public. Weisberg’s unbridled greed has led him from the halls of an international law firm to a federal prison cell,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the Federal Bureau of Investigation, the agency that led the government’s investigation, and thanked the Securities and Exchange Commission for its assistance.
The securities fraud conspiracy conviction resulted from Weisberg’s involvement with a scheme in which he received kickback payments from co-conspirators in connection with the issuance of publicly-traded securities by two of Weisberg’s former corporate clients. The money laundering conviction resulted from Weisberg’s theft of money from an escrow account established on behalf of one of his clients for which Weisberg served as escrow agent. The convictions relate to separate criminal acts committed by Weisberg and were charged in two separate indictments. Weisberg entered a guilty plea to both charges on May 21, 2013, on the morning that jury selection for his first trial was scheduled to begin.
In connection with the securities fraud conspiracy conviction, Weisberg engaged in a $55 million fraud scheme in which he agreed to conceal co-conspirators’ ownership and control of securities issued through a series of offerings by two public companies, Xybernaut Corporation and Ramp Corporation. During the course of the conspiracy, Weisberg acted as outside counsel to Xybernaut and Ramp, and was a member of Xybernaut’s Board of Directors. In return for his participation, the co-conspirators made kickback payments to Weisberg and others. The co-conspirators’ ownership and control over the Xybernaut and Ramp securities and the kickback payments were never disclosed in Ramp’s or Xybernaut’s corporate filings with the U.S. Securities and Exchange Commission.
In connection with the money laundering conviction, Weisberg was engaged by a corporate client to establish a $30 million escrow account. He advised the client that the account could not earn interest for the client’s benefit. In fact, Weisberg caused the $30 million to be placed into an interest-bearing account. During a 14-month period, the account earned approximately $1.6 million in interest, and Weisberg caused approximately $1.3 million to be wired out of the account to pay for his personal and business expenses without the client’s knowledge. Weisberg concealed the fraud by falsely convincing his client that the bank did not send monthly account statements; Weisberg instead sent the client letters on law firm letterhead stating false account balances.
The government’s case is being prosecuted by Assistant United States Attorneys Ilene Jaroslaw and John Nowak.
This prosecution was the result of efforts by President Barack 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. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
MARTIN WEISBERG
Residence: Waccabuc, NY
Age: 62Convicted Sex Offender Charged with Illegal Sexual Conduct with A MinorRead the Press Release
United States Attorney Laura E. Duffy announced that today a federal grand jury returned a superseding indictment charging Norman Felts, a convicted sex offender, with engaging in illegal sexual conduct with a minor while traveling in foreign commerce and for committing this offense while under a legal obligation to register as a sex offender. The defendant was previously charged with a complaint and has been in custody since his arrest on June 11, 2013.
The charging document alleges that, between December 2008 and January 11, 2013, Felts, a citizen of the United States, traveled to Mexico and engaged in illicit sexual conduct with a person under the age of 18, in violation of Title 18, United States Code, Section 2423(c). During that time period, Felts was required by federal and California state law to register as a sex offender. The superseding indictment also alleges that, on May 28, 2013, Felts possessed a hard drive that contained visual depictions of minors engaged in sexually explicit conduct, in violation of Title 18 U.S.C. 2522(a)(4)(B), and transported images of minors engaged in sexually explicit conduct, in violation of Title 18 U.S.C. 2522(a)(1).
As to these charges, the superseding indictment alleges that Felts was previously convicted of oral copulation under Cal. Penal Code 288A in 1972, child molestation under Georgia law in 1977, and procurement of a child under the age of 16 for lewd or lascivious acts under Cal. Penal Code 266j.
The defendant is next scheduled to be in court on August 8, 2013, before Judge Cathy Ann Bencivengo. The public is reminded that an indictment itself is not evidence that the defendant committed the crimes charged. The defendant is presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
This case stems from an investigation by the Department of Homeland Security, Immigration and Customs Enforcement's Homeland Security Investigations.
This case was brought as part of the Department of Justice's Project Safe Childhood and ICE's Operation Predator. Both are nationwide initiatives to combat the growing epidemic of child sexual exploitation and abuse, to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources." For more information about on Operation Predator, please visit www.ice.gov.
Anyone with information relating to the charges against this defendant is urged to call (619) 744-4623 and leave a confidential message, which will be returned by special agents investigating this case.
DEFENDANT Case Number: 13CR2296-CAB Norman Felts In Custody SUMMARY OF CHARGESCount 1 18 U.S.C. 2423(c) Engaging in Illicit Sexual Conduct in a Foreign Place
Maximum penalties: 30 years’ imprisonmentCount 2 18 U.S.C. 2260A Penalties for Registered Sex Offenders
Maximum penalties: 10 years’ imprisonmentCount 3 18 U.S.C. 2522(a)(1) and (b)(1) Transportation of Images of Minors Engaged in Sexually Explicit Conduct
Maximum penalties: 15 years imprisonment minimum, 40 year maximumCount 4 18 U.S.C. 2522(a)(2)(b) and (b)(2) Possession of Matters Containing Images of Minors Engaged in Sexually Explicit Conduct
Maximum penalties: 10 years’ imprisonment minimum, 30 year maximumCount 5 18 U.S.C. 1001 False Statement to a Federal Officer
INVESTIGATING AGENCIES
Maximum penalties: 8 years’ imprisonmentImmigration and Customs Enforcement's Homeland Security Investigations
Customs and Border ProtectionAn indictment itself is not evidence that the defendant committed the crimes charged.
The defendant is presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.Convicted Felon from Mount Olive Sentenced to 46 Months in Prison for Possessing A FirearmRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Louise W. Flanagan sentenced ANTHONY EARL RIVERS, 25, of Mount Olive, to 46 months in prison, followed by 3 years of supervised release upon conviction for Possession of a Firearm by a Convicted Felon, in violation of Title 18, United States Code, Sections 922(g) and 924.
On May 4, 2012, the Mt. Olive Police Department received a tip from a confidential informant that RIVERS, operating under the alias of “Worm”, had just been seen driving another individual who had been involved in an assault with a firearm on Claytor Street in Mt. Olive. The Mt. Olive Police Department immediately began to look for RIVERS and the individual who was reported to have committed the assault using a firearm. Officers located RIVERS and the other individual a few blocks away on Slocum Street and attempted a traffic stop. As soon as RIVERS pulled into a driveway the passenger jumped out of the vehicle and ran on foot. Mt. Olive police immediately gave foot chase, leaving RIVERS momentarily alone in the driver’s seat of his car.
RIVERS’ actions when he was alone in the car were captured on the exterior video camera of a Mt. Olive police cruiser. The video showed RIVERS quickly exiting his vehicle and leaning down into a bush located within a few feet of the car. By the time other officers arrived on the scene RIVERS was already attempting to drive away. RIVERS was stopped by other officers before he could leave.
Officers canvassed the area of the chase but were not able to locate a firearm. After searching the vehicle and discovering no firearm, RIVERS was allowed to leave the scene. Within minutes, however, officers discovered the firearm, an Armscor; model Citadel, .45 caliber semi-automatic pistol, located in the bush adjacent to the car. Officers immediately left the scene, found RIVERS, and took him into custody. While RIVERS initially denied knowledge of the firearm, he later made statements admitting that he had “stashed” the firearm.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) with the assistance of the Mt. Olive Police Department. Assistant United States Attorney William M. Gilmore represented the Government.
Contractor Admits Colluding on Bids for Grant Funds from City of BayonneRead the Press Release
TRENTON, N.J. – A Hudson County, N.J., man today admitted his role in bid-rigging in order to fraudulently obtain U.S. Department of Housing and Urban Development grant funds from the City of Bayonne, N.J., U.S. Attorney Paul J. Fishman announced.
Leo Viguie, 38, of Bayonne, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of theft of government funds totaling $40,000.According to documents filed in this case and statements made in court:
Viguie was the owner of L.V. Renovations LLC, a general contracting company in Bayonne. The City of Bayonne Department of Community Development (CBDCD) was a government agency that received funds from the U.S. Department Housing and Urban Development under a federal program that provided grants of up to $20,000 to low income families to rehabilitate their homes and to repair conditions that were considered to affect their health and safety, and their homes’ accessibility, energy efficiency or code compliance.
In September 2011, Viguie, as the owner of L.V. Renovations, LLC, caused another contractor to provide Viguie with a bid that was higher than his own for the purpose of obtaining HUD grant funds from the City of Bayonne. Viguie then submitted the other contractor’s bid along with his own to the CBDCD. As a result of Viguie colluding with the other contractor and submitting the two bids, Viguie wrongfully obtained $20,000 in HUD grant funds from the CBDCD on Sept. 29, 2011.
In December 2011, Viguie supplied another contractor with a bid on behalf of L.V. Renovations that was higher than the other contractor’s bid for the purpose of obtaining HUD grant funds from the City of Bayonne. The other contractor then submitted the two bids to the CBDCD. As a result of Viguie colluding with the other contractor who then submitted the two bids, the other contractor wrongfully obtained $20,000 in HUD grant funds from the CBDCD on Dec. 28, 2011.
The theft of government funds charge carries a maximum potential penalty of 10 years in prison and a maximum fine of $250,000. Sentencing is currently scheduled for Dec. 4, 2013.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent In Charge Aaron T. Ford in Newark, special agents of the U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Cary Rubenstein, and special agents of the IRS, under the direction of Special Agent in Charge Shantelle P. Kitchen in Newark, with the continuing investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Zahid N. Quraishi of the U.S. Attorney’s Office Special Prosecutions Division and Assistant U.S. Attorney Steven G. Sanders of the Newark office.
13-329
Defense counsel: Genesis A. Peduto Esq., North Bergen, N.J.Viguie Information
Colorado Man Pleads Guilty to Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that Joe S. Romero, age 42, of Denver, Colorado, appeared before U.S. District Judge Karen E. Schreier, on August 2, 2013, and pled guilty to an Indictment that charged him with Failure to Pay Child Support.
The maximum penalty upon conviction is 2 years' imprisonment, a $250,000.00 fine, one year supervised release, one additional year of custody upon revocation, a $100.00 assessment fee, and child support restitution amount owing at the time of sentencing.
Romero was ordered by the District Court of Denver County to pay $200.00 per month for his minor child beginning January 7, 1993. Romero had not made a child support payment since May of 2011. At the time of the plea hearing, the total arrearage amount was $33,601.69.
The investigation was conducted by the Department of Health and Human Services, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Thomas J. Wright.
A presentence investigation was ordered and a sentencing date was set for October 21, 2013. The defendant wasremanded to the custody of the U.S. Marshal pending sentencing.Coastal Community Bank Executives and Attorney Charged with Conspiracy, Wire Fraud, False Statements, and Making a False Claim Against the United StatesRead the Press Release
PANAMA CITY, FLORIDA– Donald Terry Dubose, aka “Terry Dubose,” 65, of Panama City Beach, Florida; Elwood Ladon West, aka “Woody West,” 39 of Monroeville, Alabama; and Frank Alfred Baker, 61, of Marianna, Florida, have been charged by a Federal Grand Jury with one count of conspiracy to commit wire fraud against the Federal Deposit Insurance Corporation (FDIC), seven counts of wire fraud, three counts of making false statements to the FDIC, and one count of aiding and abetting a false claim against the United States, announced United States Attorney Pamela C. Marsh for the Northern District of Florida. A sealed indictment was returned by the Federal Grand Jury on July 9, 2013 and unsealed today.
The indictment alleges that Coastal Community Investments (“Coastal”) was a bank-holding company that owned Coastal Community Bank, based in Panama City Beach, and Bayside Savings Bank, based in Port St. Joe, Florida. Coastal Community Bank and Bayside Savings Bank both failed on July 30, 2010. Dubose was the Chairman and Chief Executive Officer of Coastal and the second largest Coastal shareholder. West was the Chief Financial Officer of Coastal and a Coastal shareholder. Baker was an attorney for Coastal and Coastal’s largest shareholder.
The fraud alleged in the indictment involved the FDIC’s Temporary Liquidity Guarantee Program (“TLGP”), which was created at the height of the financial crisis in October 2008. The purpose of the TLGP was to encourage banks to begin lending to one another again and, thereby, help stabilize the economy. To do this, the TLGP provided that the FDIC would guarantee a loan made by one financial institution (the “lender”) to another financial institution (the “borrower”) in an amount up to 125% of the borrower’s existing senior unsecured debt (“outstanding-unsecured debt”), thus assuring repayment to the lender by the borrower or, in the event of default, by the FDIC.
The indictment further alleges that, in October 2008, Coastal had a $3,000,000 loan with RBC Bank (USA), which was secured by 100% of the stock of Coastal Community Bank and Bayside Savings Bank (the “RBC Loan”). At that time, the RBC Loan was in default, thus giving RBC the ability to exercise its right to take the pledged stock and potentially rendering defendants’ shares in Coastal worthless. Under pressure from RBC to repay this debt, the indictment alleges that the defendants falsely certified to the FDIC that the RBC Loan was unsecured, knowing that it was secured, so that Coastal could get an FDIC guaranteed loan under the TLGP.
The indictment further alleges that Coastal obtained a $3,750,000 (125% of the RBC Loan) loan from central Florida-based CenterState Bank, which - based on the defendants’ misrepresentations - was guaranteed by the FDIC under the TLGP (the “TLGP Loan”). Coastal used the proceeds of the TLGP Loan to repay the RBC Loan. In June 2010, Coastal defaulted on the TLGP Loan, and, on August 7, 2010, CenterState Bank filed a claim with the FDIC for payment of the full amount due on the TLGP Loan, plus interest. The FDIC paid CenterState’s claim on August 13, 2010 by wiring $3,805,833.34 in principal and interest from the FDIC to CenterState.
Finally, the indictment alleges that Dubose, desiring to avoid losses to himself and his family as Coastal’s financial condition deteriorated, fraudulently sold and converted Coastal stock owned by him and his family members to unwitting investors by misrepresenting the nature of the stock, by misrepresenting Coastal’s financial condition, and by providing loans from Coastal Community Bank to finance the purchases of Coastal stock.
Defendants are scheduled for to appear in Federal court for their initial appearance and arraignment August 8, 2013 at 1:30 p.m. at the United States Courthouse, 30 West Government Street, Panama City, Florida.
The defendants are facing a maximum of 30 years’ imprisonment on each count of conspiracy to commit wire fraud and wire fraud. The defendants face a maximum of five years’ imprisonment for and making false statements to the FDIC and aiding and abetting CenterState Bank in making a false claim against the United States.
This indictment results from an extensive investigation by agents of the Federal Reserve Board – Office of the Inspector General, the FBI, the FDIC, and the Office of the Special Inspector General for the Troubled Asset Relief Program. The case is being prosecuted by Assistant U.S. Attorney Gayle Littleton.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.Clinton Woman Pleads Guilty in $2.3 Million Government Contract Fraud SchemeRead the Press Release
Greenbelt, Maryland – Larayne Whitehead, age 34, of Clinton, Maryland, pleaded guilty today to conspiring to commit wire fraud in connection with a scheme to defraud businesses which supplied goods under government contracts.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to her plea agreement, from December 2007 to May 2013, Whitehead and her co-conspirators used at least 15 businesses in Maryland, Delaware, Georgia, Nevada, North Carolina and Tennessee which they incorporated to bid on contracts to provide goods – such as books, snowmobiles, plants and paint – to federal, state and local government agencies. Most of the contracts were awarded using an online marketplace, which contractors use to compete for federal contracts through a reverse auction process. The conspirators’ businesses often submitted extremely low bids to secure the contracts. Once awarded the contracts, Whitehead enticed victim businesses to act as subcontractors and supply the goods required by contract by providing fake references and by falsely promising that the subcontractors would be paid after the government paid Whitehead. After the subcontractors delivered the goods required by the contracts, government agencies paid Whitehead, typically by electronic transfers to bank accounts set up in the business names but controlled by Whitehead. Whitehead fraudulently retained these proceeds for her own personal benefit and did not pay the subcontractors.
The conspirators typically operated under a particular business name for a period of six to 12 months until the business was either disqualified from the online marketplace or was otherwise burdened with lawsuits or liens. The conspirators then continued the scheme under a newly-registered business name. The conspirators initially used their true names and addresses to register their businesses, but later attempted to conceal their true identities by using aliases.
Whitehead has agreed to forfeit $2,393,579 and a car.Whitehead faces a maximum sentence of 20 years in prison and a fine of $250,000. U.S. District Judge Alexander Williams, Jr. scheduled her sentencing for January 14, 2014 at 12:00 p.m.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force - chaired by Assistant Attorney General for the Criminal Division Lanny A. Breuer - includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice=s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant U.S. Attorney Christen A. Sproule, who is prosecuting the case.
Child Pornography Trafficker Sentenced to 210 MonthsRead the Press Release
WILMINGTON – United States Attorney Thomas G. Walker announced that today in federal court, Senior United States District Judge James C. Fox sentenced MITCHELL BYRON HALES , 37, of Apex to 210 months imprisonment, followed by lifetime supervised release. HALES had previously been employed by the Wake County public school system.
HALES pled guilty to one count of distribution of child pornography in January 2013. Undercover investigators from the FBI found HALES online sharing images of child sexual abuse with others. After obtaining a search warrant, the FBI conducted a forensic examination of HALES’ computer equipment, which showed that HALES had amassed thousands of pictures and hundreds of videos of children being sexually abused, was communicating with others about the material, and had traded his collection extensively with others.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Investigation of this case was led by the Federal Bureau of Investigation and the prosecution was coordinated with the Wake County District Attorney’s office. Assistant United States Attorney Jay Exum prosecuted the case for the United States.
Cedar Rapids Man Pleads Guilty to Providing A Gun to A FelonRead the Press Release
A man who provided a gun to a felon pled guilty on August 6, 2013, in federal court in Cedar Rapids.
Demetrius Hardiman, age 18, from Cedar Rapids, Iowa, was convicted of one count of transferring a firearm to a prohibited person.
At the plea hearing, Hardiman admitted that on May 8, 2013, he knowingly gave a gun to his brother, a convicted felon who was prohibited from possessing firearms. Cedar Rapids Police Officers encountered Hardiman and his brother at 1:15 a.m. and discovered that Hardiman’s brother, a felon, unlawfully possessed a cocked and loaded 9mm handgun. Hardiman told officers that he stole the gun the year before and had his brother carry the gun that night for protection.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Hardiman remains free on bond previously set pending sentencing. Hardiman faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
This case is being prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes. The case is being prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by the Cedar Rapids Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, and Firearms.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-0037.
Carlsbad Man Sentenced to Sixty-Three Months in Federal Prison for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Theodore Robert Larsen, 34, of Carlsbad, N.M., was sentenced this morning in Las Cruces federal court to 63 months in federal prison followed by five years of supervised release for his possession of child pornography conviction. Larsen will be required to register as a sex offender after he completes his prison sentence.
Larsen was arrested in Sept. 2011, based on an investigation by Homeland Security Investigations (HSI), which included the execution of a federal search warrant at his Carlsbad residence. The evidence seized during that search included computers and computer-related media containing child pornography.
Larsen pleaded guilty to possession of child pornography in Nov. 2011, and subsequently entered into an amended plea agreement in April 2013. In entering his guilty plea, Larsen admitted that he knowingly possessed the child pornography found in the residence. Larsen also admitted that he used his computer and the Internet to access and retrieve child pornography, and that he possessed approximately 1,457 images and 264 video clips of child pornography.
This case was investigated by the Las Cruces office of HSI and the Carlsbad Police Department. It was prosecuted by Assistant U.S. Attorney Marisa Lizarraga of the U.S. Attorney’s Las Cruces Branch Office 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 Operation also was brought as a part of the New Mexico 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.Career Offender Sentenced to 188 Months for Bank RobberyRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever, III sentenced James Robert Lisenby , 56, formerly of Oxford, North Carolina to 188 months imprisonment, followed by 3 years of supervised release. LISENBY was ordered to pay a $100.00 special assessment and restitution of $1,643.00 to SunTrust Bank, Oxford, North Carolina.
James Robert Lisenby was named in an Indictment filed on April 18, 2012, charging him with Bank Robbery, in violation of Title 18 U.S.C. § 2113(a). On April 23, 2013, Lisenby pled guilty to that charge.
According to the investigation, on January 17, 2012, LISENBY entered the SunTrust Bank in Oxford, North Carolina, carrying a bag and wearing a ski mask and gloves, with what appeared to be a firearm sticking out of his pocket. LISENBY, then approached the counter and demanded money from four tellers and, after receiving the money and placing it in the bag, he fled the bank on foot.
Investigation of this case was conducted by the Federal Bureau of Investigation’s Raleigh-Durham Safe Streets Task Force, Oxford Police Department, and the Granville County Sheriff’s Office. Assistant United States Attorney Thomas B. Murphy represented the government.
Bullhead Man Indicted on Sexual Abuse and Sexual Contact ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bullhead, South Dakota, man has been indicted by a federal grand jury.
Landon Iron Thunder, age 24, was indicted on July 17, 2013, for Sexual Abuse of a Person Incapable of Consent, Sexual Abuse of a Minor, Abusive Sexual Contact of a Person Incapable of Consent, and Abusive Sexual Contact of a Minor. Iron Thunder appeared before U.S. Magistrate Judge William D. Gerdes on July 26, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction for the charges is as follows. Sexual Abuse of a Person Incapable of Consent: any term of years up to life imprisonment; Sexual Abuse of a Minor: 15 years of imprisonment; Abusive Sexual Contact with a Person Incapable of Consent: 3 years of imprisonment; and Abusive Sexual Contact of a Minor: 2 years of imprisonment.
All counts include a possible $250,000 fine, 5 years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and Iron Thunder is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case. Iron Thunder was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.Bryant Man Indicted on Extortion ChargesRead the Press Release
Threatened Benton Police Department and Boston FBI
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, along with Randall C. Coleman, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI), and Chief Kirk Lane of the Benton Police Department, announced today a federal grand jury returned an indictment charging Brandon Goodin, age 21, of Bryant, Arkansas, with two counts of attempted extortion in violation of 18 U.S.C. § 1951.
Count One of the indictment alleges that on April 11, 2013, Goodin sent an email to the Benton Police Department threatening “to kill one person at random every following day” unless the Benton Police Department paid Goodin $7,000,000 in cash. Count Two of the indictment alleges that on April 16, 2013, Goodin sent an email to the Boston Division of the Federal Bureau of Investigation threatening “we have a lot of these bombs in place across the nation and we can blow them with little effort” unless the Federal Bureau of Investigation paid Goodin $400,000,000 in cash.
The penalty for a violation of 18 U.S.C. § 1951 is up to 20 years imprisonment, up to 3 years supervised release, and up to a $250,000 fine.
Goodin is in custody and will appear before United States Magistrate Judge H. David Young for Plea and Arraignment later this month, at which time a trial date will be set.
The investigation was conducted by the Federal Bureau of Investigation and the Benton Police Department. It is being prosecuted by Assistant United States Attorney Julie Peters.
An indictment contains only allegations. The defendant is presumed innocent unless and until proven guilty.
Blackfoot Man Pleads Guilty to Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that Stewart Bobtail Bear, Sr., age 41, of Blackfoot, South Dakota, appeared before U.S. District Judge Charles B. Kornmann on August 2, 2013, and pled guilty to Assault Resulting in Serious Bodily Injury.
The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release; and an additional 2 years of supervised release upon revocation. Restitution and a $100 special assessment to the Federal Crime Victims Fund may also be ordered.
The conviction stems from an incident on or about March 24, 2011, when the Defendant and victim were both present at a gathering in Little Eagle. During the evening, various arguments began among individuals, including the Defendant and the victim. The victim decided to leave and was attacked from behind by the Defendant. As a result of the attack, the victim’s nose was shattered and he required surgery. The victim also sustained a permanent blind spot in his left eye.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Bobtail Bear was remanded to the custody of the U.S. Marshals Service pending sentencing, which has been set for October 21, 2013.Beaumont Man Receives Federal Prison Sentence for Possession of Material Involving the Sexual Exploitaiton of ChildrenRead the Press Release
Department of Justice
Office of Public AffairsBeaumont, Texas – A 25 year old Beaumont, Texas man was sentenced to federal prison after having pleaded guilty earlier this year to charges of possession of material involving the sexual exploitation of children announced U.S. Attorney John M. Bales today.
Michael Brandan Griffith was sentenced to 78 months in federal prison during an appearance before United States District Judge Marcia Crone today. Griffith had pleaded guilty on April 9, 2013 to possession of material involving the sexual exploitation of children.
According to information presented in court, on Jan. 20, 2012, federal and local agents executed a search warrant at Griffith’s residence in Beaumont, Texas. Several computers and digital storage devices were seized during the search and found to contain more approximately 111 images and 59 videos of child pornography. Some of the material included prepubescent children under the age of 12 engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.This case was investigated by the Beaumont Police Department and the Department of Homeland Security - Immigrations and Customs Enforcement and was prosecuted by Assistant U.S. Attorney Christopher Tortorice.
Atlanta Hospital Worker Pleads Guilty to Stealing $1.7 Million in Medical SuppliesRead the Press Release
BOSTON – A former employee of an Atlanta-based hospital pleaded guilty yesterday to conspiring to sell stolen medical supplies valued at more than $1.7 million.
Felicia Duggan, 41, of Georgia, pleaded guilty before U.S. District Judge Mark L. Wolf to conspiracy to commit the offense of interstate transportation of stolen goods and two counts of subscribing to a false tax return.
Over a two-year period, Duggan stole numerous medical supplies and devices from a supply room of an Atlanta-based hospital where she was formerly employed. Beginning in March 2008, Duggan conspired with others to sell those stolen medical supplies on the black market. The conspiracy originated in Boston and subsequently moved to Atlanta. Several people in the Boston and Atlanta areas have been charged as part of this investigation into the black market for stolen hospital medical supplies and devices.
The statutory maximum penalty is five years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss on the charge of conspiracy and $250,000 on the charges of subscribing false tax returns.United States Attorney Carmen M. Ortiz; Mark Dragonetti, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations in New England; Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement.
This case is being prosecuted by Assistant U.S. Attorney Amanda P. M. Strachan of Ortiz’s Health Care Fraud Unit.