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Thursday 20 June 2013
Convicted Felon Sentenced to over 18 Years in Prison for Possessing A FirearmRead the Press Release
AUGUSTA, Ga. – Demetrius L. McKinney, 33, of Augusta, Georgia, was sentenced today by United States District Judge J. Randal Hall, to 18 years 9 months in prison for possessing a handgun as a convicted felon. He was also sentenced to serve 5 years of supervised release upon his release from prison.
Evidence presented during the guilty plea and sentencing hearings revealed that in May 2012, McKinney possessed a loaded firearm in the glove-compartment of a car. McKinney said he had the gun “for protection.” Prior to possessing the gun McKinney had been convicted of Burglary, two serious drug offenses, and an Aggravated Assault, making him an “armed career criminal” under federal law and subjecting him to a minimum mandatory sentence of 15 years.
During the sentencing hearing the evidence revealed that McKinney committed a number of his prior felonies while on bond, parole, or probation in the state judicial system. The Court cited McKinney’s complete lack of respect for the law, high likelihood of recidivism, and clear record of an inability to abide by release conditions, as factors contributing to the lengthy prison term.
The case was investigated by Georgia State Patrol, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case was prosecuted under Project Ceasefire, a joint federal, state and local firearms initiative involving the U.S. Attorney’s Office, ATF and various local police departments.
United States Attorney Edward Tarver said: “Through Project Ceasefire, the United States Attorney’s Office will continue to vigorously enforce federal firearms laws. Project Ceasefire has proven to be an effective tool in the Department of Justice’s efforts to rid the streets of dangerous felons who carry guns. Felons who possess firearms can expect to be returned to prison, and serve federal time without the possibility of parole. ”
Assistant U.S. Attorney Lamont A. Belk prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Clayton, New York - Man indicted for making false statements, possession and use of an altered Merchant Marine License, fraud in connection with identification documents, and aggravated Identity theft.Read the Press Release
Richard S. Hartunian, United States Attorney for the Northern District of New York, announced today that Mark Anselm, 37, of Clayton, N.Y., was indicted by a federal grand jury on twelve counts for making false statements to Coast Guard and Department of Homeland Security officials (counts 1-3), possession and use of an altered Merchant Marine License (counts 4-7), fraud in connection with identification documents (count 8), and aggravated Identity theft (counts 9-12), in violation of 18 U.S.C. §§ 1001, 2197, 1028(a)(6) and 1028A. If convicted, Anselm faces a maximum possible penalty of fifty-three years in prison and a three million dollar fine.
Anselm is charged with having held himself out to federal officials, to various marina owners, and to other potential employers as a licensed commercial ship pilot when in fact he possesses no such license. He is charged with having repeatedly presented a falsified merchant marine license that Anselm altered to substitute his name. On June 19, 2012 Anselm piloted a commercial tug boat on Lake Ontario which he grounded. A follow-up investigation revealed numerous instances of Anselm holding himself out as a licensed commercial merchant marine captain.
An Indictment is a mere allegation of wrongdoing. All individuals are presumed innocent until and unless convicted beyond a reasonable doubt in a court of law.
This case was investigated by Special Agents of the Coast Guard and Department of Homeland Security. Prosecution is being handled by Assistant United States Attorney Craig A. Benedict. Mr. Benedict may be contacted for questions regarding this case at 315-448-0726.
Canton Businessman Sentenced to Prison for Violating the Clean Air ActRead the Press Release
GRAND RAPIDS, MICHIGAN – Anthony Michael Davis, 34, of Canton, Michigan, was sentenced to 12 months in prison for violating the federal Clean Air Act, U.S. Attorney Patrick Miles announced today. U.S. District Judge Robert Holmes Bell also ordered Davis to pay $168,029.59 in restitution to the U.S. Environmental Protection Agency (“EPA”) and serve two years of supervised release following his release from prison.
Davis purchased a former paper mill in Otsego, Michigan to salvage valuable scrap material from a powerhouse building containing large boilers and turbines. Davis knew that asbestos-containing insulation was present in the powerhouse because certain insulation carried warning labels stating: “Hazardous Substance Asbestos.” A representative of the former owner of the Otsego paper mill also warned Davis of the asbestos in the powerhouse and recommended an asbestos inspection before removing anything from the structure. Despite those warnings, and in an effort to cut costs, Davis failed to conduct a thorough asbestos inspection. Additionally, he paid laborers to scrap materials from the powerhouse without following basic rules of asbestos removal, such as wetting the asbestos with water prior to its removal until it is collected and contained for proper disposal. The salvage operation resulted in the release of a significant quantity of asbestos-containing insulation onto multiple floors of the building, which was open to the outside environment.
At sentencing, the court stated that the defendant’s offense was “serious” and that his actions endangered the health of those who live and work near the paper mill in Otsego. The court also found troubling the defendant’s misrepresentations to state investigators when he initially claimed that he did not know he was dealing with asbestos in the powerhouse.
U.S. Attorney Miles said, “Davis exposed his workers and the public to dangerous asbestos fibers that have been shown to cause serious illnesses like lung cancer and other serious respiratory diseases. Some of his workers wore their dirty clothes and shoes into their homes, potentially exposing their family to the dangers presented by the inhalation of asbestos fibers. The court’s sentence should send a clear message to those who seek increased profits at the expense of the environment and the health and safety of others.”
“Exposure to asbestos can be fatal. Its unsafe and illegal disposal endangers human health and can seriously harm the environment,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Michigan. “The defendant failed to comply with regulations that would have shown the extent to which the building contained asbestos-contaminated material. This case should serve notice that EPA and its partner agencies will prosecute those who ‘cut corners’ by avoiding the costs of handling or disposing of asbestos properly.”
The case was investigated by the EPA Criminal Investigation Division and the Michigan Department of Natural Resources Environmental Investigation Section. Assistant U.S. Attorney Christopher O’Connor prosecuted the case on behalf of the United States.The investigation of this case was the result of a confidential tip. If Michigan residents suspect a possible violation of environmental laws or regulations, they are encouraged to call the U.S. EPA hotline at 1-800-621-8431, or submit a tip on the Internet at www.epa.gov/tips.
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Businessman Pleads Guilty to Violating Campaign Finance Law, Admits Disguising Source of More Than $150,000 in ContributionsActivities Took Place over Nine-Year Period, Involved Federal and Local CampaignsRead the Press Release
WASHINGTON – Lee A. Calhoun, an executive for a Washington, D.C.-based company, pled guilty today to a federal charge stemming from a scheme in which he and others helped disguise the actual source of more than $150,000 in campaign contributions.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Calhoun, 65, of Silver Spring, Md., pled guilty in the U.S. District Court for the District of Columbia to one count of knowingly and willfully permitting the name of one or more persons to be used to make campaign contributions in the name of another person and aiding and abetting campaign contributions to be made in the name of another. The Honorable Colleen Kollar-Kotelly scheduled a status hearing for Sept. 26, 2013. The misdemeanor charge carries a statutory maximum of one year of imprisonment and financial penalties. As part of the plea agreement, Calhoun agreed to cooperate in the continuing investigation.
According to a statement of offense, signed by the defendant as well as the government, during the relevant time period of the offense, Calhoun worked for a company in the District of Columbia that provided accounting, management consulting, and tax services. He served as a principal in the management and consulting division since 2000.
The statement of offense refers to the company as “Company A.” It also refers to “Executive A” as the company’s Chairman, Chief Executive Officer and majority owner.
Beginning as early as June 2002 and continuing until in or about June 2011, according to the statement of offense, Calhoun used his name and the names of his relatives to disguise campaign contributions made by “Executive A” and “Company A” to federal, District of Columbia, and other political campaign committees and political action committees.
Calhoun admitted that he knowingly and willfully permitted both his and others’ names to be used to conceal the true source of these contributions at the direction of “Executive A” and others acting at the behest of “Executive A.” Calhoun knew that he would be reimbursed for the contributions, directly and indirectly by “Executive A” and “Company A.”
“Today’s guilty plea reveals how a D.C. accounting firm was converted into an assembly line for illegal campaign contributions,” said U.S. Attorney Machen. “For a decade, the firm and its CEO made illegal campaign contributions through straw donors to an array of federal and D.C. politicians. The firm used a special accounting system to keep track of the thousands and thousands of dollars it was plowing into political campaigns. This prosecution demonstrates the depth of our commitment to investigate and uproot criminal schemes intended to hide illegal campaign contributions – schemes that if left unchecked can threaten the very integrity of our democratic process.”
“Today, Mr. Calhoun admitted his role in evading campaign finance laws by purposefully hiding the true source of more than $150,000 provided to political campaigns,” said Assistant Director in Charge Parlave. “Together with our law enforcement partners, the FBI will continue to work to ensure that all those who participate in corrupt election schemes that elude fair electoral processes are held accountable for their actions.”
During the calendar years 2002 through 2011, according to the statement of offense, Calhoun caused at least $79,400 in federal political contributions from “Executive A” and “Company A” to be made in his name and the names of his relatives, including contributions to political action committees and the campaign committees of candidates who were running for President of the United States, the U.S. Senate, and the U.S. House of Representatives.
Through this scheme, “Executive A,” “Company A,” Calhoun, and others caused various campaigns and political action committees to file reports with the Federal Election Commission that did not reveal the true source of the unlawful campaign contributions.
Additionally, according to the statement of offense, during calendar years 2002 through 2011, Calhoun caused at least $76,600 in District of Columbia political contributions from “Executive A” and “Company A” to be made in his name and the names of his relatives. These included contributions to the campaign committees of candidates running for Mayor and the Council of the District of Columbia, among other elected offices.
According to the statement of offense, Calhoun also made political contributions in his name and the names of family members for local and state political candidates and campaigns in other states, localities, and U.S. territories for which “Executive A” caused “Company A” to reimburse him.
Also according to the statement of offense, Calhoun’s illegal campaign contribution reimbursements were inaccurately referred to in Company A’s financial records as “advances” or “advances on bonus.”
In announcing the plea, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Special Agent in Charge Kelly commended those who investigated the case from the FBI’s Washington Field Office and IRS-CI.
They also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Jonathan W. Haray, Ellen Chubin Epstein, Lionel André, Jonathan Hooks and Ted L. Radway; former Assistant U.S. Attorney Mary Chris Dobbie; Criminal Investigator Matthew Kutz, and Paralegal Specialists Anne Riopelle, Shanna Hays, Krishawn Graham, Lenisse Edloe, Nicole Wattelet, Corinne Laxman, and Angela Lawrence. Finally, they thanked Assistant U.S. Attorneys Loyaan A. Egal and Ephraim (Fry) Wernick, who are prosecuting the case.
13-216Brimley Felon Sentenced for Possession of Firearms on Bay Mills ReservationRead the Press Release
MARQUETTE, MICHIGAN – Patricia Marie Sawasky, 46, of Brimley, Michigan, was sentenced to 24 months in federal prison for being a felon in possession of firearms, U.S. Attorney Patrick A. Miles, Jr. announced today. In addition to the prison term, U.S. District Judge R. Allan Edgar ordered Sawasky to serve two years of supervised release following her release from prison, and to pay a $100 special assessment. Sawasky had pled guilty in February.
The investigation into Sawasky’s activities stemmed from the execution of a search warrant at a residence Sawasky occasionally occupied with her boyfriend. In the process of being taken into custody on an outstanding state arrest warrant, Sawasky assaulted a tribal officer. During the execution of the search, eleven firearms were located in the residence, some in a gun cabinet and others in the master bedroom. The firearms included a .50 caliber revolver. Sawasky, who had been previously convicted of a felony drug offense in Michigan, admitted that she had handled the .50 caliber revolver and had ready access to the other firearms in the residence.
The Bay Mills Indian Community Tribal Police, the Chippewa County Sheriff Department, and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Paul D. Lochner prosecuted the case.
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Birmingham Man Sentenced to One Year in Prison for Tweeting Threat Against PresidentRead the Press Release
HUNTSVILLE – U.S. District Judge C. Lynwood Smith Jr. today sentenced a Birmingham man to one year in prison for threatening the life of President Barack Obama on the social network Twitter, announced U.S. Attorney Joyce White Vance and U.S. Secret Service Acting Special Agent in Charge Jeffrey Anderson.
JARVIS BRITTON, 26, pleaded guilty in March to tweeting threats against the president in September. Judge Smith had ruled in February that Britton was competent to stand trial. After Britton completes his prison term, he must serve three years of supervised release.
A federal grand jury indicted Britton in September for knowingly threatening to kill, kidnap or inflict bodily harm on the president by tweeting the message, "Let's kill the president. F.E.A.R.," on Sept. 14.
The Secret Service investigated the case. Assistant U.S. Attorneys Joseph P. Montminy and Daniel J. Fortune prosecuted the case.
Ball Man Sentenced for Growing/Selling MarijuanaRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that Sidney Earl Wheeler III, 33, of Ball, La., was sentenced by U.S. District Judge Dee D. Drell to 24 months in prison and four years supervised release for manufacture and possession with intent to distribute marijuana.
According to evidence presented at the guilty plea, authorities received an anonymous tip that someone in a Ball, La., residence might be growing marijuana plants in a building behind a home. After conducting surveillance of the residence and obtaining a search warrant, authorities discovered two hidden rooms in the building behind the house on June 7, 2012. The rooms contained marijuana plants in various growth stages as well as equipment and materials used to cultivate marijuana. Inside the house, hydrocodone, an AK-47 and ammunition were found. Authorities found more than 100 marijuana plants on the property. At the time of the search, Wheeler was found in the building and was arrested. Wheeler pleaded guilty March 4, 2013."This defendant’s drug production and distribution operation was a violation of the law,” Finley stated. “This illegal activity was uncovered thanks to the help of a concerned citizen and investigators who cared about this community. We hope this serves as a deterrent to those who try to profit from illegal drug production.”
The Louisiana State Police and the FBI-Central Louisiana Gang Safe Streets Task Force conducted the investigation. Assistant U.S. Attorney Allison D. Bushnell prosecuted the case.
Austell Man Sentenced to over 17 Years for Receiving Child PornographyRead the Press Release
AUGUSTA, GA – Starke Allen Hawkins, 60, of Austell, Georgia was sentenced on June 19, 2013 by United States District Court J. Randal Hall to 17½ years in prison, followed by 20 years of supervised release, for receiving child pornography. Hawkins will be required to register as a sex offender. At the conclusion of the sentencing, Hawkins was returned to the custody of the United States Marshal Service to serve his sentence.
According to the evidence presented at Hawkins’ plea and sentencing hearings, in April 2012, a computer storage device, later determined to be that of Hawkins, contained approximately 100 images of child pornography depicting prepubescent children engaged in sexual acts. The device also reflected online chats of a highly sexual nature between Hawkins and at least one minor. When interviewed by an Federal Bureau of Investigation agent, Hawkins admitted that he had downloaded and viewed child pornography images, and had shared images with a minor female. Hawkins’ computer and storage media were found to contain over 530 still images and at least 3 video images of child pornography. At the sentencing hearing, Hawkins admitted to having a serious problem and hoped to get treatment while in prison.
United States Attorney Edward J. Tarver stated, “The exchange of images depicting the sexual exploitation of innocent children is a serious and heinous crime. The abuse to these young victims continued every time the Defendant viewed these images and shared them with others. There is no higher priority within the Department of Justice than the protection of our Nation’s children. There should be no doubt that the United States Attorney’s Office will prosecute those who facilitate and create a market for the violent sexual assault of children.”
This case was brought as part of Project Safe Childhood, a U.S. Department of Justice initiative designed to protect children from online exploitation and abuse. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.
The case was the result of an investigation conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Nancy Greenwood prosecuted the case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Armed Bank Robber Pleads Guilty to Robbing Mechanics Bank in Pinole, CaliforniaRead the Press Release
OAKLAND – Gary Casdell Fite, II, pleaded guilty in federal court yesterday to armed bank robbery and brandishing a firearm in furtherance of that crime, announced United States Attorney Melinda Haag.
In pleading guilty, Fite admitted to robbing the Mechanics Bank on Pinole Valley Boulevard in Pinole, Calif., on March 1, 2013. According to the plea agreement, Fite jumped over the teller counter and demanded money from two victim tellers. While demanding money, Fite pointed his loaded gun at the head of one of the tellers. Fite stole $3,292 from the bank.
Fite, 23, of Oakland, was indicted by a federal Grand Jury on March 28, 2013. He was charged with armed bank robbery, in violation of 18 U.S.C. § 2113(a) and (d), and brandishing a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(c)(1)(A)(ii). Under the plea agreement, Fite pleaded guilty to both counts. Co-defendant and getaway driver Regina Dean, 37, of Antioch, pleaded guilty on May 15, 2013, to aiding and abetting the armed robbery, without a plea agreement.
Fite is currently in federal custody. His sentencing hearing is scheduled for September 4, 2013, before U.S. District Court Judge Phyllis J. Hamilton. Dean’s sentencing hearing is scheduled for August 21, 2013. The maximum sentence for armed bank robbery is 25 years in prison, and the maximum sentence for brandishing a firearm during and in relation to a crime of violence is life in prison, with a minimum sentence of 7 years. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the FBI.
Anthony O. Calabrese III Sentenced to Nine Years in Prison for BribesRead the Press Release
Anthony O. Calabrese III was sentenced to nine years in prison and ordered to pay more than $200,000 for his role in a series of bribery schemes involving Jimmy Dimora, Frank Russo, J. Kevin Kelley and others uncovered as part of the Cuyahoga County corruption investigation, federal law enforcement officials said.
“Anthony Calabrese misused his status as an attorney to facilitate bribes and foster corruption,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “Today's sentence reflects the fact that Calabrese was deeply involved in a variety of bribery schemes involving a school district, a halfway house and the infamous trip to Las Vegas, just to name a few.”
“His criminal conduct spanned his entire legal career,” Assistant U.S. Attorney Antoinette Bacon said in court.
Calabrese, 40, of Chagrin Falls, Ohio, previously pleaded guilty to 18 counts which detail improper payments of nearly $550,000. The counts include racketeering; conspiracy to commit mail fraud and honest services fraud; Hobbs Act conspiracy; bribery concerning programs receiving federal funds; conspiracy to commit mail fraud and mail fraud.
U.S. District Judge Sara Lioi sentenced Calabrese to 108 months in prison and ordered him to pay $132,041 in restitution -- $120,970 to Cuyahoga County and $11,071 to Parma schools. Calabrese has already forfeited $74,450
The racketeering charge involves conduct that took place between 2001 and 2009 in which Calabrese gave things of value to public officials and their designees in return for public officials taking and promising to take official action that benefitted Calabrese, Law Firm 1 (where Calabrese was an associate and partner), their clients and designees, according court documents.
Specifically, Calabrese participated in a scheme in which he and Cuyahoga County employee J. Kevin Kelley helped obtain tax exempt status for the property leased by Alternatives Agency around January 2004, according to court documents.
In September 2004, after a tax refund check was issued to Alternatives Agency for $144,216.26, Calabrese instructed Alternative Agency to issue a check to Business 45 for $72,000 and classify the expense as consulting, despite Calabrese knowing that Business 45 performed no consulting services for Alternatives Agency to justify the expense, according to the indictment.
Business 45, in turn, issued checks payable to Calabrese for $31,500 and J. Kevin Kelley Consulting, LLC, for $35,500. Business 45 kept the remaining $5,000, according to the indictment.
In another scheme, Calabrese lobbied Kelley (a member of the Parma School Board) and other members of the Parma School Board in January 2005 to contract with Business 9 to serve as project manager for a renovation project. Business 9 was a construction company that specialized in stone and brick masonry and was a client of Law Firm 1, according to court documents.
In September 2005, the Parma School Board, with Kelley voting in favor, awarded a contract worth $1.8 million to Business 9, according to court documents.
Calabrese and Kelley arranged for Business 9 to hire The Eagle Group, a consulting company formed by Daniel P. Gallagher. In August 2009, Business 9 sent a check for $15,000 to Eagle. Gallagher then paid a portion of that money to Kelley and Kevin Payne, according to court documents.
Other conduct detailed in court documents includes Calabrese, Kelley, Brian Schuman, former Cuyahoga County Auditor Frank P. Russo and former Cuyahoga County Commissioner James C. Dimora conspiring to increase the funding for Alternatives Agency.
In or around January 2008, Calabrese, who served as legal counsel for Alternatives Agency, instructed Schuman, an employee of Alternatives Agency, to increase Kelley’s monthly consulting fee by $2,000 for four months for the purpose of funding expenses associated with a Las Vegas trip for Dimora, Russo and Public Employee 55, according to court documents.
In or around 2003, Prudoff began receiving payments from Alternatives Agency on a monthly basis, purportedly for consulting work. When BE39 informed Calabrese that Alternatives Agency received no work product from Prudoff, Calabrese told BE39 that Prudoff was consulting on a Lorain expansion project, according to court documents.
BE39 questioned why Alternatives Agency was paying Prudoff, since he was the Community Development Director for Lorain and it would be within his job requirements to assist companies such as Alternatives Agency, who were interested in developing facilities in Lorain. Calabrese insisted that BE39 continue to cause Alternatives to pay Prudoff, according to court documents.
Calabrese did not inform the Alternatives board about the payments for consultants on a Lorain expansion project and the board did not approve payments to any such consultant, according to court documents.
In or around June 2005, Calabrese told BE39 that Prudoff had some issues arise and Prudoff’s monthly payment should be issued to Relative 2, who was related to Prudoff’s girlfriend, according to court documents.
In or around July 2005, Calabrese and Prudoff assisted Relative 2 in forming Business 46. On or about July 25, 2005, Alternatives Agency began issuing checks to Business 46 for approximately $4,000 on a monthly basis, according to court documents.
Prudoff provided favorable consideration to Calabrese and his designees on business matter unrelated to Alternatives Agency, in return and in exchange for the consulting fees that Calabrese caused Prudoff and Business 46 to receive from Alternatives, according to court documents.
In another case, Business 43 was incorporated in the State of Ohio in March 2005 and Calabrese’s relative (Relative 1) was the registered agent for the company. Calabrese caused Alternatives to engage Business 43's services but concealed from Alternatives his relative’s relationship to Business 43 and did not disclose to them that Relative 1 performed little or no work for Alternatives to justify the fees paid, according to court documents.
In or around 2002, Calabrese influence Alternatives to hire A.C. Sinagra and Associates. In January 2006, A.C. Sinagra and Associated entered into a contract setting a monthly consulting fee at approximately $1,500, according to court documents.
In March 2006, Calabrese and Sinagra agreed that Calabrese would cause Alternatives to increase its payments to A.C. Sinagra and Associates, and Sinagra would use the additional funds to pay persons or entities identified by Calabrese in the amounts Calabrese designated, according to court documents.
Calabrese first suggested Sinagra make consulting payments to Relative 1 through Business 43. He later asked Sinagra to pay Calabrese through Burlwood Holdings, an LLC formed in 2004 and controlled by Calabrese, according to court documents.
Calabrese also asked Sinagra to pay Relative 2 and Sinagra agreed to both requests. Sinagra performed no legitimate work for Alternatives to justify the increase in his fee, according to court documents.
In May 2006, Alternatives increased Sinagra’s monthly fee from $1,500 to approximately $6,000. In May 2006, A.C. Sinagra Company issued a check to Relative 2 for $2,000 and Berlwood Holdings (sic) for $2,000. This continued through November 2007, according to court documents.
In sum, from Calabrese caused Alternatives to make payments to Prudoff and Relative 2 between July 2003 and March 2006 totaling approximately $144,000, according to court documents.
Calabrese caused Alternatives to make payments to Business 43 between March 2005 and March 2006 totaling approximately $12,950, according to court documents.
Calabrese caused Alternatives to make payments to A.C. Sinagra and Associates between January 2002 and November 2007 totaling approximately $190,500, according to court documents.
Calabrese caused Alternatives to make payments to J. Kevin Kelley Consulting between October 2004 and August 2008 totaling approximately $201,473, according to court documents.
Regarding Count 9, Relative 1's brother was Attorney 6. Attorney 7 was Calabrese’s relative and formerly related to Relative 1. On or about Feb. 2, 2009, Calabrese told BE39 that Calabrese and Attorney 7 had met with Attorney 6. Calabrese asked BE39 to meet with Attorney 6, according to the indictment.
BE39 met with Attorney 6 on Feb. 2, 2009. Attorney 6 told BE39 that Calabrese and Attorney 7 wanted Attorney 6 to meet with BE39 to go over the script, according to court documents.
Attorney 6 instructed BE39 that if anyone questioned BE39 about Relative 1, BE39 should say that BE40 and BE39 hired Relative 1 to work out of her home to help with the Lorain expansion, which Calabrese and BE39 knew was not true, according to court documents.
This case was prosecuted by Assistant U.S. Attorneys Antoinette T. Bacon and Nancy L. Kelley. The investigation was conducted by the Cleveland office of the Federal Bureau of Investigation and the Internal Revenue Service.24 Laredoans Indicted on Drug and Money Laundering ChargesRead the Press Release
LAREDO, Texas – Two Indictments, alleging conspiracy to possess with intent to distribute heroin, cocaine and methamphetamine as well as money laundering charges, have been partially unsealed following the arrest of 25 individuals, United States Attorney Kenneth Magidson announced today along with Special Agent in Charge Javier Peña of the Drug Enforcement Administration and Special Agent in Charge Armando Fernandez of the FBI’s San Antonio Division.
During law enforcement actions this morning, agents arrested a total of 24 Laredo residents. Those include Juan Pablo Contreras, 37, Carlos Contreras, 33, Modesto Moises Ramirez, 43, Arnulfo Ramos-Valdez Jr., 42, Julio Jesus Rangel, 30, Ana Rosa Contreras, 31, Martin Contreras Jr., 25, Steve Contreras, 35, Victor Contreras, 22, Guadalupe Mario Contreras, 51, Abraham Xavier Becerra, 29, Jorge Alberto Guerra, 40, Eufrosina Lopez, 41,Yvonne Hernandez, 42, Orlando G. Ibarra, 32, Raul Victoriano Rojas, 40, Luis Manuel Salinas, 46, Leopoldo Arviso, 26, Christopher O’Bryant, 25, Eduardo Santa Cruz, 32, and Guadalupe Bedarte, 29.Jaime Tomas Hernandez-Rocha, 45, Pablo Contreras Jr., 41, and Mario Alberto Rodriguez, 26, all of Laredo, are also charged but were already in custody. Also charged and arrested today was Richard Cruz Rodriguez Jr., 46, of San Antonio.
The indictment alleges some of those charged are members and associates of the Texas Mexican Mafia prison gang. The indictments, returned under seal on June 11, 2013 and partially unsealed following the arrests today, remain sealed as to those charged but not in custody.
“Today, DEA and our law enforcement counterparts issued a substantial blow to the Texas Mexican Mafia Laredo Chapter, allegedly one of the strongest Mexican-based cocaine trafficking organizations operating in Texas,” said Peña. “The DEA will continue to assault these types of alleged drug trafficking organizations if they are suspected of brazenly distributing illegal controlled substances throughout our communities.”
“These arrests today should send a clear message to the Texas Mexican Mafia, and other suspected criminal organizations, that law enforcement will not tolerate their alleged violent acts and trafficking of dangerous drugs in our community, added Fernandez.”
The joint investigation began in 2009 and identified some of the defendants as members of the Mexican Mafia distributing cocaine, heroin and methamphetamine, according to the indictment. Additional defendants were also allegedly associated with the Mexican Mafia and participated in the conspiracy, doing so under the group’s protection. The indictment indicates the distribution of heroin and methamphetamine was organized mainly by Juan Pablo Contreras and Carlos Contreras to other alleged members and associates of the Mexican Mafia and included distribution to locations such as San Antonio, Austin and Corpus Christi. The investigation also uncovered evidence of the gang’s money laundering activities, part of which revealed efforts to smuggle drug proceeds back to the sources of the drugs in Mexico, according to the indictment.
The charges are the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation named “Operation X3,” which was conducted by agents of the FBI, Drug Enforcement Administration, Homeland Security Investigations and Internal Revenue Service-Criminal Investigation. They were assisted at different times by the United States Marshals Service, police departments in Laredo, Austin and San Marcos, Customs and Border Protection, Texas Department of Public Safety - Criminal Investigations Division and the LaSalle and Karnes County Sheriff’s Offices.
Assistant United States Attorneys James Hepburn and Andy Guardiola are prosecuting the cases.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.16 Count Drug Trafficking Indictment ReturnedRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced today that ten men were indicted by a federal grand jury on drug trafficking charges, including conspiracy to distribute heroin, crack cocaine, cocaine, and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and 846. The sixteen-count indictment was partially unsealed yesterday.
The charged defendants include Qiydaar Miller, age 33 from Wilmington, Albari Malik Johnson, age 37 from Wilmington, Tamir Collins, age 32 from Wilmington, Keenan Williams, age 55 from Wilmington, Walter Thomas, age 51 from Wilmington, Ibrahim Sesay, age 37 from Wilmington, Andre Cephas, age 42 from Ellendale, Harry Coverdale, age 35 from Wilmington, Corey Pendergrass, age 33 from Wilmington, and Daqwan Riley, age 20 from Wilmington. If convicted of any of the remaining offenses, the defendants charged in those offenses could face either a mandatory minimum sentence of at least five years of imprisonment, and up to forty years in prison, in addition to fines, and supervised release, or up to twenty years in prison, in addition to fines, and supervised release, depending on the amount of drug charged in the offense.
The Indictment alleges that the conspiracy to distribute controlled substances existed between March 2012 and June 2013. Moreover, the prosecution presented information during detention hearings held yesterday in federal court that the defendants were part of a drug-trafficking organization that distributed drugs throughout Wilmington, Delaware, including a residence located at 30th and Madison Streets, which served as the group’s base of operations.
The Indictment and arrests of these individuals was the product of a long-term investigation into the drug-trafficking organization, led by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Wilmington Police Department and the State of Delaware Department of Corrections Division of Probation and Parole. Critical support for the investigation and arrests was provided by Delaware State Police, Delaware Division of Gaming Enforcement, New Castle County Police Department, United States Marshals Service, and the United States Department of Agriculture.
Acting United States Attorney David C. Weiss thanked the federal, state, and local law enforcement agencies for their participation in this investigation, and stated, “The defendants are charged with participating in a conspiracy to distribute substantial quantities of illegal drugs in the city of Wilmington. We are determined to pursue these charges to the fullest extent of the law, and we will continue the investigation into others who had joined with the charged defendants in trafficking illegal drugs here in Delaware.”
The charges in the Indictment are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The case is being prosecuted by Assistant United States Attorneys Jamie M. McCall and Ilana Eisenstein, District of Delaware. For further information, please contact AUSA McCall at 302-573-6079 or AUSA Eisenstein at 302-573-6082.
Wednesday 19 June 2013
Youngstown Man Indicted for Production of Child PornographyRead the Press Release
A federal grand jury returned a four-count indictment charging Christopher Cavna, age 26, of Youngstown, Ohio, with producing, distributing and receiving child pornography, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on or about May 19, 2013, Cavna knowingly permitted a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, and such visual depiction was produced using materials that had been mailed, shipped, and transported in interstate or foreign commerce by any means, including by computer.
The indictment also charges that on or about May 20, 2013, Cavna knowingly permitted a different minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, and such visual depiction was produced using materials that had been mailed, shipped, and transported in interstate or foreign commerce by any means, including by computer.
The indictment also charges that on or about May 20, 2013, Cavna knowingly distributed two computer image files, each containing a visual depiction of a real minor engaged in sexually explicit conduct. The indictment also charges that from on or about October 12, 2011 though October 28, 2012, Cavna knowingly received and distributed numerous computer files, which files contained visual depictions of real minors, other than those previously mentioned, engaged in sexually explicit conduct.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan.
The case was investigated by the Youngstown office of the Federal Bureau of Investigation, the Mahoning County Violent Crimes Task Force and the Ohio Adult Parole Authority.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Yakima Drug Trafficker Sentenced to Ten Years in Federal PrisonRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Jose Antonio Naranjo-Lozano, age 24, of Yakima, Washington, was sentenced today after being convicted of Conspiracy to Distribute Methamphetamine. United States District Judge Edward F. Shea sentenced Naranjo-Lozano to a ten year term of imprisonment, to be followed by a five year term of court supervision following release from Federal prison.
In July 2012, a complaint was filed alleging that Naranjo-Lozano and a codefendant had attempted to sell five pounds of methamphetamine to undercover DEA agents. As detailed in the complaint, Naranjo-Lozano and the codefendant arrived at the location for the drug sale with the bulk of the methamphetamine hidden in an electrically operated secret compartment located in their vehicle. Naranjo-Lozano later pled guilty to one count of conspiracy to distribute over 500 grams of a substance containing methamphetamine.
Michael C. Ormsby said, "This case involved a significant amount of methamphetamine that the Defendant intended to distribute on the streets of Yakima. The seriousness of this crime is reflected by the ten year sentenced imposed by the judge. The DEA is committed to continue its aggressive investigative efforts to keep methamphetamine and other dangerous illegal drugs off the streets. The United States Attorney's Office in the Eastern District of Washington is similarly committed to aggressively prosecute such crimes. "
The investigation of this case was conducted by the Drug Enforcement Administration. This case was prosecuted by Benjamin D. Seal, an Assistant United States Attorney for the Eastern District of Washington.
Wyoming Co. Man Indicted by Federal Grand Jury on Illegal Prescription Painkiller Distribution and Firearm Possession ChargesRead the Press Release
CHARLESTON, W.Va. – A Wyoming County man was indicted on June 18 by a federal grand jury sitting in Huntington in connection with illegal prescription painkiller distribution and firearm possession offenses, U.S. Attorney Booth Goodwin announced. According to a 10-count indictment, Delbert Lester, 55, of McGraws, Wyoming Co., W.Va., allegedly sold oxycodone on eight separate occasions beginning on January 1, 2011 until May 4, 2013, near McGraws, W.Va. The indictment also alleges that on May 9, 2013, Lester possessed oxycodone with intent to distribute. Lester also allegedly possessed two loaded .22 caliber pistols in furtherance of a drug trafficking crime on May 9, 2013.
Lester faces up to 20 years in prison on each drug charge and up to five years in prison on the firearm charge if convicted.
The investigation was conducted by the Southern Regional Drug and Violent Crime Task Force. Assistant United States Attorney Haley Bunn is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
The case is also being brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Note: The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Click here to view a copy of the indictment
Woman Sentenced to Six Months Incarceration for Helping Her Husband Defraud BanksRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to six months incarceration at a community confinement center, plus five years supervised release on her conviction of charge of bank fraud conspiracy, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Beth B. Baker, 62, of Sewickley Heights, Pennsylvania.
According to the information presented to the court, Beth B. Baker conspired with her husband, David F. Baker, to defraud J.P. Morgan and Washington Mutual Bank in false mortgage applications in 2005 and 2007 regarding their purchase of a $2.5 million dollar condominium in Sarasota, Florida.
Judge Conti stated that mortgage fraud is a serious crime, and that Baker made material misrepresentations on loan applications in order to purchase an expensive condominium in Florida.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation, for the investigation leading to the successful prosecution of Beth B. Baker.
Us Seeks to Shut Down Texas Tax Preparer Whose Customers Work Overseas for Defense ContractorsRead the Press Release
WASHINGTON – The United States sued a Southlake, Texas woman last night, seeking to bar her from preparing federal tax returns for others, the Justice Department announced today. The civil injunction suit was filed against Karena Mondrianh in U.S. District Court for the Northern District of Texas.
The government complaint alleges that Mondrianh prepares fraudulent tax returns that understate customers' taxable income by inventing – sometimes without the customer's knowledge – false business expenses and by falsely claiming that a customer's income is exempt from tax. The suit alleges that most of Mondrianh's customers work overseas for defense contractors.
The complaint further alleges that Mondrianh has provided false information to the Internal Revenue Service (IRS) in improper attempts to delay IRS audits of customers. She allegedly urged one customer to lie to an IRS agent in order to prevent an IRS audit.
Return preparer fraud is one of the IRS's Dirty Dozen Tax Scams for 2013. In the past decade, the Justice Department's Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website at www.justice.gov/tax.
Related Documents:
United States v. Karena Mondrianh, etc.
Complaint for Permanent Injunction
(PDF document)Portable Document Format (PDF) files may be viewed with a free copy of Adobe Acrobat Reader
Accessibility InformationU.S. Seeks to Shut Down Texas Tax Preparer Whose Customers Work Overseas for Defense ContractorsRead the Press Release
The United States sued a Southlake, Texas woman last night, seeking to bar her from preparing federal tax returns for others, the Justice Department announced today. The civil injunction suit was filed against Karena Mondrianh in U.S. District Court for the Northern District of Texas.
The government complaint alleges that Mondrianh prepares fraudulent tax returns that understate customers’ taxable income by inventing – sometimes without the customer’s knowledge – false business expenses and by falsely claiming that a customer’s income is exempt from tax. The suit alleges that most of Mondrianh’s customers work overseas for defense contractors.
The complaint further alleges that Mondrianh has provided false information to the Internal Revenue Service (IRS) in improper attempts to delay IRS audits of customers. She allegedly urged one customer to lie to an IRS agent in order to prevent an IRS audit.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2013. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website at www.justice.gov/tax.
Two Individuals Indicted on Firearms and Drugs ChargesRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces the return by a grand jury of an indictment charging David P. Lawrence (26, Bradenton) and Mark Alan Finehout (37, Sarasota) each with being a felon in possession of a firearm. Lawrence is also charged with possessing with intent to distribute 5 grams or more of methamphetamine. If convicted of the firearms offense, Finehout faces a maximum penalty of 10 years in federal prison. Due to his prior criminal history, Lawrence faces a mandatory minimum of 15 years, up to life imprisonment for the firearms offense. For the narcotics offense, Lawrence faces a mandatory minimum of 10 years in federal prison. The indictment also notifies the individuals that the United States intends to forfeit the firearms and ammunition they are charged with possessing, and any narcotics proceeds related to the charges against Lawrence.
According to the indictment, Lawrence and Finehout, who are both previously convicted felons, are each charged with possessing a .40 caliber Taurus pistol on April 17, 2013. Lawrence is also charged with possessing an SKS rifle on April 18, 2013, and possessing with the intent to distribute 5 grams or more of methamphetamine on April 19, 2013.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Sarasota County Sheriff’s Office, and the Manatee County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Mark E. Bini.It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Three Defendants Plead Guilty in Manhattan Federal Court to Charges Related to Their Roles in the CityTime Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that LARISA MEDZON, ANNA MAKOVETSKAYA, and SVETLANA MAZER pled guilty today to various felony offenses in connection with their roles in facilitating a fraud, kickback, and money laundering scheme that targeted the City of New York’s CityTime information technology project. In connection with their pleas, the defendants agreed to forfeit their interests in over $27 million in cash held in 91 bank accounts and five safe deposit boxes, as well as four real properties worth over $4 million, all of which constitute crime proceeds. MEDZON, MAKOVETSKAYA, and SVETLANA MAZER pled guilty in Manhattan federal court before U.S. District Judge George B. Daniels.
Manhattan U.S. Attorney Preet Bharara said: “Through lies and subversion, each of these three defendants served as highly paid enablers of an epic fraud against the City of New York. And with their pleas today and multi-million dollar forfeitures, they will be stripped of their ill-gotten gains and potentially their liberty. Thanks to the efforts of prosecutors from this Office and our partners at the Department of Investigation, the City recouped more than $500 million that was lost to the CityTime fraud, and we continue to hold the perpetrators of this brazen scheme to account.”
According to the criminal Informations filed earlier today in Manhattan federal court, and as alleged in the Superseding Indictment in United States v. Mark Mazer et al., (the “Mazer Indictment”), and other public filings in the case:
The CityTime project was a City initiative intended to modernize timekeeping and payroll systems across City agencies. In 2000, Science Applications International Corporation (“SAIC”) became the lead contractor on CityTime. Beginning in 2003, SAIC appointed Gerard Denault as Program Manager for CityTime. At Denault’s behest, SAIC hired Technodyne LLC (“Technodyne”) as a “single source” subcontractor on the CityTime project. In exchange for agreeing to steer work to Technodyne, Denault and Carl Bell, SAIC’s Chief Systems Engineer in the New York office of SAIC, began receiving kickbacks from Technodyne via its principals, Reddy Allen and Padma Allen, which were laundered through affiliates of Technodyne located in India.
Beginning in 2005, Mark Mazer, who had been retained by the City to help manage the CityTime project, began demanding and obtaining a separate kickback stream via two subcontractors of Technodyne to which he steered work: D.A. Solutions, run by Mark Mazer’s uncle, Dimitry Aronshtein, and Prime View, run by Victor Natanzon. As a result of the scheme, Denault and Bell obtained approximately $15 million in kickbacks and Mark Mazer obtained approximately $30 million in kickbacks. Technodyne also obtained over $325 million in revenue from the scheme. Denault, Mark Mazer, Padma Allen, Reddy Allen, and the Allens’ company, Technodyne, among others, worked together to defraud the City by causing it to overpay for the CityTime project in order to increase their illicit profits from the scheme. The fraudulent scheme helped cause the cost of the CityTime project to balloon from under $100 million to a final cost of close to $700 million.
Mark Mazer and Aronshtein, among others, helped launder millions of dollars in proceeds of the fraud and kickback scheme by routing the funds through shell companies controlled by Mark Mazer’s relatives MEDZON, MAKOVETSKAYA, and SVETLANA MAZER, and by causing millions of dollars in proceeds to be routed through other companies and offshore accounts located in Latvia, among other means. MEDZON, Mark Mazer’s mother, withdrew over $200,000 in cash derived from the scheme through hundreds of ATM transactions that were designed to evade currency transaction reporting requirements, while MAKOVETSKAYA, Mark Mazer’s cousin, lied to employees of a federally-insured bank so that the bank would agree to open up accounts in the name of a shell company that was used to facilitate the scheme. SVETLANA MAZER, Mark Mazer’s wife, also attempted to obstruct the Government’s investigation of the CityTime scheme by omitting her role in controlling shell companies used to facilitate the scheme from sworn disclosures she submitted to the City.
MEDZON, 68, of Forest Hills, New York, pled guilty to intentionally structuring cash transactions to avoid currency reporting requirements, which carries a maximum potential penalty of five years in prison. MAKOVETSKAYA, 42, of Forest Hills, New York, pled guilty to conspiracy to make false statements to a bank, which carries a maximum potential penalty of five years in prison. SVETLANA MAZER, 47, of Manhasset, New York, pled guilty to obstruction of justice, which carries a maximum potential penalty of 20 years in prison. In connection with their pleas, the defendants agreed to entry of preliminary orders of forfeiture forfeiting their interests in a total of over $27 million in cash held in 91 bank accounts and five safe deposit boxes, and in four real properties worth more than $4 million, derived from the scheme.
Today’s pleas follow several other developments in the case, including: (1) guilty pleas by Carl Bell and Victor Natanzon, who are cooperating with the Government’s investigation; (2) the Office’s entry into a deferred prosecution agreement with SAIC, in which SAIC agreed to forfeit over $500 million, cooperate with the Government’s investigation, and accept responsibility for illegal conduct by its employees on the CityTime project; (3) the Office’s forfeiture of several million dollars in cash and property seized from Padma Allen and Reddy Allen after they fled the country to avoid prosecution; and (4) the return of approximately $500 million in forfeited funds to the City and its agencies.
Mr. Bharara praised the New York City Department of Investigation (“DOI”) for its outstanding work in this investigation, specifically the efforts of Commissioner Rose Gill Hearn and teams led by Chief of Investigations John Kantor, Deputy Commissioner for Legal Affairs Marjorie Landa, and Associate Commissioner Yuval Hibshoosh.
The charges against the remaining defendants in the Mazer Indictment, including Denault, Mark Mazer, Aronshtein, Padma Allen, Reddy Allen, and Technodyne, are merely allegations, and they are presumed innocent unless and until proven guilty.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Howard S. Master and Andrew D. Goldstein are in charge of the investigation.
U.S. v. Svetlana Mazer S4 Information
U.S. v. Larisa Medzon S3 Information
U.S. v. Anna Makovetskaya S5 InformationTexas Man Sentenced to 188 Months in Prison for Attempting to Produce Child PornographyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Emery Weyland Graham, 43, of Longview, Texas, was sentenced by U.S. District Judge Elizabeth E. Foote to 188 months in prison for attempting to produce child pornography. Graham is also required to complete 10 years of supervised release and register as a sex offender. Graham pleaded guilty on Feb. 19, 2013.
According to the evidence presented at the guilty plea, the Youngsville Police Department received a complaint on Sept. 13, 2011 from a mother that her daughter had been sent sexually explicit messages by a 41-year-old man using a cell phone. Police confiscated the phone, and an undercover officer posed as the 13-year old girl, through texts, to continue communication with Graham. Graham sent sexually explicit messages about sexual acts that he wanted to perform on the girl and asked the girl to send him sexually explicit images of herself. He instructed the minor on how to take the pictures and provided details of the images he wanted. Graham was arrested on Oct. 5, 2011.
“Prosecuting internet predators is a top priority for the U.S. Attorney’s Office,” Finley stated. “This sentence should send the message that there are serious consequences for attempting to exploit children. Predators who seek to rob the innocence of children will be prosecuted to the fullest extent of the law.”Homeland Security Investigations, Youngsville Police Department, and the Louisiana State Police investigated the case with assistance from the Texas Rangers. Assistant U.S. Attorney Myers P. Namie prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp and to the FBI at tips.fbi.gov. Tips may be submitted anonymously.
Ten Drug Traffickers Charged in Oxycodone Distribution RingRead the Press Release
More Than 25 Defendants Face Tribal And State Drug Charges
ASHEVILLE, N.C. – A criminal indictment charging seven defendants with drug trafficking conspiracy and related charges was unsealed today in U.S. District court, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. The federal indictment was returned by a grand jury sitting in Asheville on June 4, 2013, and remained sealed until today, following yesterday’s arrests of the named defendants by law enforcement.
U.S. Attorney Tompkins is joined in making today’s announcement by Harry S. Sommers, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Jason O’Neal, Deputy Associate Director of the Bureau of Indian Affairs, Division of Drug Enforcement; Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Chief Ben Reed of the Cherokee Indian Police Department; Sheriff Curtis Cochran of the Swain County Sheriff’s Office; Sheriff Mickey Anderson of the Graham County Sheriff’s Office; Sheriff Greg Christopher of the Haywood County Sheriff’s Office; and Sheriff Jimmy Ashe of the Jackson County Sheriff’s Office.
The indictment is the result of a large scale two-year joint federal, tribal and state investigation targeting the distribution of narcotics, with a focus on prescription drugs, on and around the Cherokee Indian Reservation.
The defendants named in the indictment are charged with one count of conspiracy to possess with intent to distribute controlled substances, including oxycodone, cocaine, marijuana and alprazolam. According to the indictment, the alleged conduct took place between January 2007 and December 2012 in Swain and Jackson Counties. Those charged are:
• Jackie Lee Rattler, 54, of Cherokee, N.C.
• Jacob Hunter Rattler, 21, of Cherokee.
• Evan Thomas Norris, Jr., 54, of Robbinsville, N.C.
• Taryn Krista Elizabeth Toineeta Rattler, 25, of Cherokee.
• Timothy Leroy Rattler, 50, of Cherokee.
• Justina Nacole Rattler, 31, of Cherokee.
• Mark Allen Winstead, 26, of Cherokee.
Jackie Lee Rattler also faces six additional counts of possession with intent to distribute controlled substances, and one count of being a controlled substance user in possession of firearms. Jacob Hunter Rattler is also charged with one additional count of possession with intent to distribute a controlled substance.
The indictment includes a notice of forfeiture, which gives notice that the defendants must forfeit to the United States all of the property and currency involved in the offenses charged in the indictment, and all property and currency which are proceeds of such offenses, including approximately $48,900 in cash, 44 firearms, three vehicles and two Harley Davidson motorcycles seized during the course of the investigation.
Six of the seven defendants charged in the indictment are in custody. Taryn Rattler remains a fugitive. Those arrested will remain in custody pending their detention hearings, which have been scheduled for Friday, June 21, 2013. Each drug offense carries a maximum prison term of 20 years, a $1 million fine, or both. The user of narcotics in possession of firearms offense carries a maximum prison term of 10 years, a $250,000 fine, or both.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until they proven guilty beyond a reasonable doubt in a court of law.
Tribal and state law enforcement officers have arrested and charged more than 25 defendants on tribal and state drug offenses.
Those facing tribal drug charges are: Deborah Smith, Charles Taylor, Austin Gunter, Humberto Corral, Deanna Smith (not arrested), Kevin Smith, Shenna Crowe, Lisa Toineeta, Sam Thompson, Mike Walkingstick (not arrested), Annie Cucumber, Robert Tramper, Ashley Keel (not arrested), Chadwick Feather, Walter Bradley, Thomas Rickman, Victoria Cucumber (not arrested), Delores Cabrera, Sally Bryson, Raymond Whitecotton, Rachel Taylor and Regan Parton.
Those facing state drug charges are: Alea Ohmart, James Murphy, Ceegee Bird (not arrested), Clyde Taylor, Rogelio Cabrera, Eric Dossett, Anthony Dossett (not arrested), Frankie Dyer and Christin Hodgins (Not arresged).
U.S. Attorney Tompkins thanked all the law enforcement agencies involved in this investigation for their continued cooperation and assistance. The prosecution for the case is handled by Special Assistant U.S. Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville.
Statement of Manhattan U.S. Attorney Preet Bharara on the Guilty Pleas of Larisa Medzon, Anna Makovetskaya, and Svetlana Mazer to Charges Related to Their Roles in the Citytime Fraud SchemeRead the Press Release
“Through lies and subversion, each of these three defendants served as highly paid enablers of an epic fraud against the City of New York. And with their pleas today and multi-million dollar forfeitures, they will be stripped of their ill-gotten gains and potentially their liberty. Thanks to the efforts of prosecutors from this Office and our partners at the Department of Investigation, the City recouped more than $500 million that was lost to the CityTime fraud, and we continue to hold the perpetrators of this brazen scheme to account.”
Sixteen Arrested in Alleged Heroin Trafficking ConspiracyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – A yearlong investigation into an alleged heroin trafficking organization in central Ohio has resulted in the arrests of 16 people, the seizure of more than 11 kilograms of heroin, three firearms, and more than $115,000 in cash.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Robert Corso, Special Agent in Charge, Drug Enforcement Administration, Franklin County Sheriff Zach Scott and Columbus Police Chief Kim Jacobs announced the arrests today.
Investigators made the arrests between June 10 and today based on federal complaints. Each defendant has been charged with conspiracy to possess with intent to distribute heroin, a crime punishable by at least five and up to 40 years in prison. All defendants have appeared before a U.S. Magistrate Judge who ordered them held without bond until trial. Eight search warrants have also been executed since June 10 as part of the investigation.
U.S. Attorney Stewart said the investigation by DEA, the Franklin County Sheriff’s Office, Columbus Police and the DEA Southwest Border Task Force is continuing.
Stewart commended Assistant U.S. Attorneys Michael Hunter and Kevin Kelley who are representing the United States in this case.
Charges contained in a complaint are allegations. All defendants should be presumed innocent until and unless proven guilty in court.
A list of those charged is below.
DEFENDANTS ARRESTED IN JUNE 2013 HEROIN INVESTIGATION
Name AGE ADDRESS
Alonso Ernesto TORRES MONTANO 25 Grove City
Luis Alberto TORRES MONTANO 30 Grove City
Santiago Manuel AZDEITIA 21 Columbus
Ivon Itzel TRUJILLO CERVANTES 30 Grove City
Johana Yazmin DIAZ LOPEZ 25 Columbus
Jose Enrique ESPARZA CASTILLO 24 Columbus
Victor GARCIA, aka “EL NEGRO” 25 Columbus
Francisco Fuentes ESTRADA, aka “EL GALLO” 34 Columbus
Primitivo BUENROSTO, aka “JOAQUIN” 60 Columbus
Jose Luis DIAZ 39 Columbus
Janeth ARVIZU VALDERRAMA 26 Columbus
Andy Abel DIAZ LOPEZ 19 Columbus
Juan Carlos PEREZ LEON, aka “CARLOS” 24 Fairfield
Juan M. BERMUDEZ DELGADO 28 Columbus
Oscar JURADO 23 Columbus
Lonnie GARCIA GOMEZ 19 ColumbusSewickley Heights Man Sentenced to Prison for False Mortgage ApplicationsRead the Press Release
PITTSBURGH, Pa. - An Allegheny County man has been sentenced in federal court to 18 months incarceration plus five years supervised release on his conviction of charge of bank fraud conspiracy, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on David F. Baker III, 62, of Sewickley Heights, Pa.
According to the information presented to the court, David F. Baker, III, conspired to defraud J.P. Morgan and Washington Mutual Bank in false mortgage applications in 2005 and 2007 on a $2.5 million condominium in Sarasota, Fla.
Judge Conti stated that mortgage fraud is a serious crime, and that Baker made material misrepresentations on loan applications in order to purchase an expensive condominium in Florida.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation, for the investigation leading to the successful prosecution of David F. Baker, III.
Settlement with Ash Grove Cement Company to Reduce Thousands of Tons of Air EmissionsRead the Press Release
Ash Grove Cement Company has agreed to pay a $2.5 million penalty and invest approximately $30 million in pollution control technology at its nine Portland cement manufacturing plants to resolve alleged violations of the Clean Air Act, announced the Department of Justice and the U.S. Environmental Protection Agency (EPA).
Today’s agreement will reduce more than 17,000 tons of harmful nitrogen oxides (NOx) and sulfur dioxide (SO2) pollution each year across plants located in Foreman, Ark.; Inkom, Idaho; Chanute, Kan.; Clancy, Mont.; Louisville, Neb.; Durkee, Ore.; Leamington, Utah; Seattle, Wash.; and Midlothian, Texas.
“This significant settlement will achieve substantial reductions in air pollution from Ash Grove’s Portland cement manufacturing facilities and benefit the health of communities across the nation,” said Acting Assistant Attorney General Robert G. Dreher. “The agreement reflects the Justice Department’s ongoing commitment to protecting public health and the environment through enforcement of the nation’s Clean Air Act.”
“Today’s settlement will reduce air pollution that can harm human health and contribute to acid rain, haze, and smog,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “The new stringent limits on emissions will lead to less pollution and better air quality for communities across the country.”
In addition, Ash Grove has agreed to spend $750,000 to mitigate the effects of past excess emissions from several of its facilities.
The settlement requires Ash Grove to meet stringent emission limits and install and continuously operate modern technology to reduce NOx, SO2, and particulate matter (PM). Ash Grove is required to reduce NOx emissions at nine kilns, some of which will have the lowest emission limits of any retrofit control system in the country. In addition, modern pollution controls must be installed on every kiln to reduce PM emissions, and on several kilns to reduce SO2 emissions.
In addition, at its Texas facility, Ash Grove will shut down two older, inefficient kilns, while a third will be replaced with a cleaner, newly reconstructed kiln.
Ash Grove will also spend $750,000 on a project to replace old diesel truck engines at its facilities in Kansas, Arkansas, and Texas, which are estimated to reduce smog-forming nitrogen oxides by approximately 27 tons per year.
The settlement is part of EPA’s national enforcement initiative to control harmful air pollution from the largest sources of emissions, including portland cement manufacturing facilities. This is also the first settlement with a cement manufacturer that requires injunctive relief and emission limits for PM. SO2 and NOx, two key pollutants emitted from cement plants, can harm human health and are significant contributors to acid rain, smog, and haze. These pollutants are converted in the air into fine particles of particulate matter that can cause severe respiratory and cardiovascular impacts, and premature death.
Eight states and one local agency have joined the United States in the settlement, including: Arkansas, Idaho, Kansas, Montana, Nebraska, Oregon, Utah, Washington, and the Puget Sound Clean Air Agency.
The settlement was lodged today in the U.S. District Court for the District of Kansas and
is subject to a 30-day public comment period and final court approval. It will be available for viewing at www.justice.gov/enrd/Consent_Decrees.html.More information about this settlement:
www.epa.gov/enforcement/air/cases/ashgrove.htmlMore about EPA’s National Enforcement Initiatives: http://www.epa.gov/compliance/data/planning/initiatives/index.html
Second Former Carter's Executive Pleads Guilty to Multi-Million Dollar Insider Trading ConspiracyRead the Press Release
Defendant Tipped Former Co-Worker Between 2009 And 2010
ATLANTA – Richard T. Posey pleaded guilty today to conspiracy to commit securities fraud in connection with a multi-million dollar insider trading conspiracy involving Carter’s stock.
“Corporate insiders who disclose company secrets are the enablers who make illegal insider trading possible,” said United States Attorney Sally Quillian Yates. “Insider trading undermines faith in the nation’s stock markets. Public company executives and employees should be on notice that when it comes to material, non-public information, they are required to play by the same rules as everyone else.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s guilty plea holds this defendant accountable for his criminal actions and makes it clear that corporate executives are not exempt from the rule of law. The FBI asks that anyone with information regarding such criminal activity to contact their nearest FBI field office.”
According to United States Attorney Yates, the charges and other information presented in court: Posey, 52, of Duluth, Ga., was employed as a Vice President of Operations for various Carter’s brands and divisions, and later as Vice President of Operations for the company’s wholesale sales business from in or about July 2002 until his termination in January 2013.
Carter’s is a publicly-traded company registered with the U.S. Securities and Exchange Commission (“SEC”), and its stock is listed on the New York Stock Exchange under the ticker symbol “CRI.” Carter’s is obligated to report its financial results in annual and quarterly filings with the SEC, so that members of the public can make informed investment decisions.
From approximately April 2009 through July 2010, while employed by Carter’s, Posey disclosed inside information about Carter’s upcoming earnings releases and other developments to Eric M. Martin, the company’s former head of investor relations, for the purpose of making illegal insider trades and tipping others. Martin, who was convicted on December 18, 2012, of tipping a former Wall Street analyst identified as “Cooperator Number 1” during Martin’s employment with Carter’s between 2005 and 2009, repeatedly bought and sold Carter’s stock based on the inside information provided by Posey between 2009 and 2010, and Martin also continued to tip Cooperator Number 1 and others.
For example, Posey tipped Martin in advance of Carter’s October 27, 2009, announcement that it was conducting an internal investigation into accounting problems and would be delaying its earnings release for the third quarter of 2009. Almost immediately after Posey tipped Martin, on Friday, October 23, 2009, Martin sold his entire position in Carter’s stock, over 35,000 shares valued at approximately $1 million. Later that morning, Martin passed the tip during a telephone call to an individual identified in the Criminal Information as “Portfolio Manager Number 1,” an employee of a prominent New York hedge fund identified in the Criminal Information as “Hedge Fund Number 1.” While still on the telephone with Martin, Portfolio Manager Number 1 ordered the sale of Hedge Fund Number 1’s entire position in Carter’s stock, 300,000 shares valued at nearly $9 million. The very next trading day, Monday, October 26th, Martin tipped Cooperator Number 1 during a telephone call. Immediately after the call ended, Cooperator Number 1 sold his entire position in Carter’s stock -- 15,000 shares valued at over $400,000 -- and bought November 30th put options, thereby betting on Carter’s stock price to decline significantly. The next morning, Tuesday, October 27th, Carter’s shocked the market with the news of its internal investigation and earnings delay, and its stock price fell over 20% in one day. The internal investigation ultimately resulted in a multi-year financial restatement by Carter’s, criminal indictments of two of its former top executives for securities fraud and related offenses, and three SEC enforcement actions.
Posey disclosed this and other inside information to Martin in exchange for reciprocal stock tips about other public companies to which Martin had access, for future networking opportunities, and for friendship. Posey did so over the phone, at dinners, during drinks, and on the golf course.
Posey also traded in Carter’s stock for his own benefit on the basis of inside information about Carter’s earnings releases during his employment with the company. Between mid-2005 and late 2009, Posey traded thousands of shares of Carter’s stock during company-wide trading blackout periods that preceded approximately 14 quarterly or annual earnings releases, even though company policies prohibited company insiders from trading in Carter’s stock at those times. Posey did so without obtaining approval for the trades from Carter’s Chief Financial Officer, which company policies required Posey and a select group of key personnel to do, given their regular access to and receipt of material, non-public information. Posey’s blackout trading resulted in illegal profits and losses avoided in the amount of approximately $50,000.
Posey was convicted of tipping his former co-worker about Carter’s quarterly and annual financial results and other material, non-public information in advance of the public announcement of the information, beginning shortly after the company terminated Eric M. Martin at the end of March 2009, and continuing through July 2010. He pleaded guilty to a Criminal Information charging one count of Conspiracy to Commit Securities Fraud. He has agreed that he is responsible for illegal insider trading gains and losses avoided resulting from the conspiracy, his own trading, and relevant conduct between $2.5 million and $7 million, and has agreed to pay at least $800,000 in restitution to Carter’s, which represents the approximate amount of legal fees Carter’s has incurred to date in connection with the government’s insider trading investigation. Posey could receive a maximum sentence of five years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding, but provide appropriate sentencing ranges for most offenders.
In a separate case, a federal grand jury indicted Eric M. Martin on November 7, 2012, on one count of conspiracy, seven counts of securities fraud, and three counts of wire fraud in connection with an insider trading conspiracy from early 2005 to March 2009 and his own blackout trading while working for Carter’s. Martin pleaded guilty to one count of conspiracy on December 18, 2012. A sentencing date has not yet been set for either case. Both cases are assigned to United States District Judge Richard W. Story.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case is being investigated by the FBI. The Atlanta Regional Office of the SEC has conducted a separate investigation of possible civil violations of the U.S. securities laws, and on August 22, 2012, the SEC filed a civil enforcement action against Martin for insider trading. That case is pending.
Assistant United States Attorney David M. Chaiken is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Scandia Man Indicted for Stealing Survivor Benefits from the U.S. Department of Veterans AffairsRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 49-year-old Scandia man was indicted for stealing more than $92,000 in survivor benefits from the United States Department of Veterans Affairs (“VA”). Dean Boraas was specifically charged with one count of theft of government funds.
The indictment alleges that from September 1, 2005, to May 30, 2010, Boraas stole and converted for his personal use $92,152 in survivor benefits to which he knew he was not entitled. The benefits were assigned to his mother, who passed away. However, the VA was not made known of that fact. As a result, the funds continued to be paid into a joint bank account held in the names of Boraas and his mother.
If convicted, Boraas faces a potential maximum penalty of ten years in federal prison. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the VA-Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.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.
San Luis Valley Man Sentenced to Nine Years in Federal Prison for Being A Felon in Possession of A FirearmRead the Press Release
DENVER – Lawrence Rolland Thiel, of San Luis, Colorado, was sentenced this month by U.S. District Court Judge William J. Martinez to serve 110 months (just over 9 years) in federal prison for possession of a firearm by a previously convicted felon, United States Attorney John Walsh and ATF Denver Special Agent in Charge Andrew Traver announced. After serving his sentence, Judge Martinez ordered Thiel to spend 3 years on supervised release. Thiel, who appeared at the hearing in custody, was remanded.
Thiel was indicted by a federal grand jury on October 1, 2012. He pled guilty before Judge Martinez on February 11, 2013. He was sentenced on June 4, 2013.
According to court records, beginning on August 11, 2012, Thiel drove past a home at a high rate of speed and fired a small black pistol in the direction of the house. The house belonged to a man who was involved in a foreclosure proceeding against Thiel’s home. While police were still investigating the initial crime, Thiel was identified as running a woman and her three children off the road while they were driving. He also pointed a small black pistol at them.
Having obtained an arrest warrant for Thiel, on August 20, 2012, a police officer observed Thiel driving the same truck involved with the two earlier crimes. Police pulled over Thiel’s vehicle. Thiel was driving, and his ex-wife, who he lived with sporadically, occupied the passenger seat. Thiel was placed under arrest. After being taken to Costilla County Jail, Thiel consented to a lawful search of his vehicle. During the search, officers discovered a Ruger P95DC 9mm pistol. A subsequent search of Thiel's home, pursuant to a search warrant, uncovered a Savage Arms Model 24C Series P, over/under shotgun/rifle. The serial number of this weapon had been obliterated.
Prior to the execution of the search warrant, Thiel’s ex-wife initially made claims that the firearms were hers. However, after the searches turned up the second firearm and pictures of Thiel shooting and posing with the pistol dating back to April of 2012, Thiel’s ex-wife admitted that Thiel had asked her to purchase them for him, and that they were his.
Thiel has a criminal history dating back to 1981. Among convictions for other minor crimes, Thiel has at least ten felony convictions from jurisdictions across Colorado and California. This is Thiel’s first conviction for a federal crime.
This case was investigated by the ATF and the San Luis Police Department.
Thiel was prosecuted by Assistant U.S. Attorney Kurt Bohn.
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Rosebud Man Charged with Possession of Child PornographyRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota man has been indicted by a federal grand jury for Possession of Child Pornography.
Jeremy Gunhammer, age 20, was indicted by a federal grand jury on June 12, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 19, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 10 years in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Gunhammer is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, South Dakota Division of Criminal Investigation, South Dakota Internet Crimes Against Children Task Force, Rosebud Sioux Tribe Law Enforcement Services, Bureau of Indian Affairs, Pennington County Sheriff’s Office, Rapid City Police Department, Sioux Falls Police Department and the U.S. Marshals Service.
U.S. Attorney Brendan Johnson and Assistant U.S. Attorneys Tim Maher and Sarah Collins are prosecuting the case.
Gunhammer was released to a third party custodian pending trial. A trial date has not been set.
Renton Man Pleads Guilty to Wire Fraud in Connection with Fake Chihuly Glass SalesRead the Press Release
A 35-year-old Renton, Washington man pleaded guilty today in U.S. District Court in Seattle to wire fraud in connection with his scheme to advertise and sell fake Chihuly artwork, announced U.S. Attorney Jenny A. Durkan. MICHAEL LITTLE admits he bought various pieces of generic glasswork and artwork over the internet and falsely claimed to buyers that it was authentic Dale Chihuly work. LITTLE made at least $40,000 selling the fakes. LITTLE will be sentenced by U.S. District Judge Robert S. Lasnik on October 4, 2013.
According to records in the case, between 2011 and April 2013, LITTLE offered for sale or sold various pieces of glass art and paintings that he represented were the original work of Dale Chihuly. LITTLE marketed the works via eBay. The artworks bore a signature that appeared to be Chihuly’s and LITTLE provided paperwork that he said authenticated the pieces as the work of Dale Chihuly. However, an expert in Chihuly’s work examined the pieces at the request of a number of the purchasers and determined they were fakes. The papers that were supposed to authenticate the works were forged. LITTLE told various stories to potential buyers about how he had acquired the Chihuly work, including that his family had purchased the pieces after winning the Lotto.
Wire fraud is punishable by up to 20 years in prison and a $250,000 fine.
The case was investigated by Seattle-Tacoma Border Enforcement Security Task Force (BEST Seattle), led by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). BEST Seattle is comprised of members from HSI; U.S. Customs and Border Protection’s Office of Field Operations; the U.S. Secret Service; the U.S. Coast Guard Investigative Service; the FBI; the U.S. Postal Inspection Service; and the Port of Seattle Police Department. BEST Seattle investigates smuggling and related crimes and combats criminal organizations seeking to exploit vulnerabilities at the Seattle and Tacoma seaports and adjacent waterways.
The case is being prosecuted by Assistant United States Attorney Matthew Diggs.
Purported Environmental Product Inventor and Developer Pleads Guilty in $5 Million Dollar Fraud SchemeRead the Press Release
Earlier today, Theodore Sweeten, the president of Symtech International, Inc. (“Symtech”), pleaded guilty to a charge of wire fraud before United States District Judge Nicholas G. Garaufis at the federal courthouse in Brooklyn, New York. When sentenced, Sweeten faces a maximum sentence of twenty years’ imprisonment.
The guilty plea 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.
Sweeten, who claimed he developed and patented the “Clean Air Valve,” among other environmental products, admitted at his guilty plea that he defrauded an investor of $5 million by lying to him about his expertise in their joint venture agreement. The indictment charged Sweeten, and two others, with inducing the victim to make the investment in order to “lease” a credit line of $100 million, which in turn would enable him to generate millions of dollars in profit through special investment programs.1 In furtherance of that scheme, the indictment alleges that the defendants falsely represented that the victim’s funds would be held in an attorney escrow account pending confirmation of the posting of $100 million in the leased-funds account. In fact, they simply distributed the victim’s $5 million among themselves and falsely represented that a $100 million account had been created at HSBC by sending the victim fabricated bank documents on HSBC letterhead.
“Theodore Sweeten defrauded an investor of his hard-earned savings through fanciful tales about his investment and environmental expertise, but the only expertise Sweeten truly had was being a con man,” stated United States Attorney Lynch. “This Office, together with our law enforcement colleagues, will vigorously pursue those who prey on unsuspecting investors.” Ms. Lynch expressed her appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation.
The government’s case is being prosecuted by Assistant United States Attorneys Winston M. Paes and Marcia M. Henry.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it 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 more than 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, visit www.stopfraud.gov.
The Defendant:
THEODORE SWEETEN
Age: 60
Residence: Ashland, Oregon_____________________________
1 The charges against the co-defendants are merely allegations, and they are presumed innocent unless and until proven guilty.
Prosecutions Continue in Illegal Entry Cases Involving Those with Prior Criminal RecordsRead the Press Release
MINNEAPOLIS – In the District of Minnesota, separate charges have been filed against two Mexican nationals who allegedly entered the United States illegally after being deported as criminals.
The first indictment alleges that on May 1, 2013, authorities found Juan Manuel Contreras-Lepe, age 61, in the U.S. illegally after he had been previously deported to Mexico. His deportation followed a 1995 Florida conviction for felony aggravated battery. On May 1, 2013, authorities identified Contreras-Lepe, also known as Ezekiel Hernandez-Sandoval, as an alien with a criminal record after a traffic stop near his Willmar residence.
If convicted of the federal charge now levied against him, Contreras-Lepe faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by ICE’s Enforcement and Removal Operations (“ICE ERO”). It is being prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.The second indictment alleges that on May 7, 2013, authorities found Alfredo Rios-Guzman, age 35, illegally in the U.S. after he had been previously deported to Mexico. His deportation followed a 2007 Hennepin County conviction for assault in the second degree, involving a dangerous weapon. On May 7, 2013, after a traffic stop near his Bloomington residence, Rios-Guzman was identified as an alien with a criminal record.
If convicted of the federal charge now filed against him, Rios-Guzman faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the ICE ERO. It is being prosecuted by Assistant U.S. Attorney Sarah E. Hudleston.
In some instances, federal prosecution will occur only after the individual is prosecuted for the recent underlying offense. The men in these cases will remain in custody until their current federal cases are resolved.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.
Pittsburgh Man Sentenced to Six Years in Prison for Receiving Child PornographyRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh man has been sentenced in federal court to 72 months imprisonment to be followed by 10 years of supervised release on his conviction of receipt of material involving exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Jared Montgomery, 29, of Pittsburgh, Pa.
According to information presented to the court, in the months leading up to April 26, 2012, Montgomery possessed and distributed visual depictions, namely, images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Assistant United States Attorney Eric S. Rosen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Allegheny County District Attorney for the investigation leading to the successful prosecution of Jared Montgomery.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Owner of Telecommunications Companies Admits Role in International Phone Hacking ConspiracyRead the Press Release
Revenue share fraud cost companies millions in losses
NEWARK, N.J. – A German citizen today admitted his role in an international conspiracy that hacked into the telephone systems of large corporations and entities in the United States and around the world to make telephone calls, causing tens of millions of dollars in losses, U.S. Attorney Paul J. Fishman announced.
Wolfgang Uelpenich, 44, of Zug, Switzerland, pleaded guilty before U.S. District Judge Katharine Hayden in Newark federal court to an information charging him with conspiracy to commit wire fraud. Uelpenich was arrested by FBI agents at a Key West, Fla., on Jan. 9, 2012.According to documents filed in this case and statements made in court:
Uelpenich, who owned telecommunications companies in Germany, conspired with others to profit by causing unauthorized telephone calls to be placed to Revenue Share Numbers (RSNs).Also known as international premium numbers, RSNs offer such services as adult entertainment, chat lines, and psychic hotlines on a cost-per-minute basis. Telephone companies that carry calls to overseas RSNs (known as Revenue Share Providers [RSPs]) are typically paid an internationally-regulated fee for connecting such calls.
To increase profits by increasing call traffic, some RSPs and others illegally use stolen telephones to make unauthorized calls, generating additional revenue, which the RSPs shared with the people or entities (known as “dialers” or “callers”) making the unauthorized calls. A recent telecommunications industry association report estimated $3.84 billion annually in revenue share fraud.
The scheme involved the theft of long distance telephone service, either through the theft of cell phone service or through a process known as “PBX hacking.” Hackers targeted PBX (Private Branch Exchange) telephone systems of corporations and placed calls to those systems in an attempt to identify telephone extensions that are not in use. Once an unused extension was identified, hackers illegally reprogrammed the telephone system. The hacked telephone system could then be used by the hackers and others to make long distance telephone calls that are charged back to the victim corporation, creating virtually free telephone lines through which they could make calls. These “free” telephone lines were then used to call RSNs controlled by defendant Uelpenich and others.
Noor Aziz, 50, a fugitive last known to have resided in Pakistan, and others obtained access to hacked PBX systems or cell phones that had been activated with fraudulent information and used those phone lines to originate telephone calls to RSNs controlled by a conspirator and Uelpenich in Slovenia, Liechtenstein, Austria and elsewhere.
The RSNs that Uelpenich controlled and provided to Aziz frequently contained no actual content – they did not have adult entertainment or chat rooms – and could never generate legitimate fees for the RSPs. Telephone company representatives who suspected fraudulent activity on these phony RSNs found they frequently had recordings of fake rings, fake password prompts, fake voicemail messages, music, or dead air on continuous loops, all to make it appear they were legitimate sites.
As a result of the conspiracy, telephone companies and the hacked entities lost tens of millions of dollars due to more than 13 million minutes of telephone calls over 4,800 hacked PBX systems. Uelpenich’s conduct between 2010 and 2012 was responsible for approximately $1 million in losses. The case was charged in New Jersey, where AT&T has a major operating center in Somerset County and a fraud detection center in Middlesex County.
The count to which Uelpenich pleaded guilty is punishable by a maximum potential penalty of five years in prison and a fine of up to $250,000 or twice the gain or loss. Sentencing is scheduled for July 15, 2013.
U.S. Attorney Fishman credited the special agents of the FBI Newark Division, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of the FBI Miami Division, under the direction of Special Agent in Charge Michael B. Steinbach, for the investigation leading to today’s guilty plea. The investigation, which relates to conduct ranging from November 2008 through January 2012, is ongoing.The government is represented by Assistant U.S. Attorney Erez Liebermann, Deputy Chief of the office’s Criminal Division.
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Defense Counsel: Alan Kaufman Esq., New York
Uelpenich, Wolfgang Information
Orleans Parish Sheriff’s Office Vendor, Richard P. Molenaar, Iii, Pleads Guilty to Conspiracy to Commit BriberyRead the Press Release
RICHARD P. MOLENAAR, III, 47, a resident of Las Cruces, New Mexico, pled guilty today in before U. S. District Judge Martin L.C. Feldman to one count of with conspiracy to commit bribery, announced U. S. Attorney Dana J. Boente.
According to court records, MOLENAAR was the owner of several maintenance/construction companies, including Ricky’s A/C, Inc., Landmark Mechanical Contractors, LLC, and Custom Carpentry Renovations, LLC. From in or around 2008 through in or around 2011, MOLENAAR used these companies to bid on maintenance jobs at the Orleans Parish Sheriff’s Office (“OPSO”). MOLENAAR’s primary point of contact at the OPSO was its former Director of Purchasing, John Sens (“Sens”). According to the factual basis, MOLENAAR, among others, including Sens, engaged in a rigged bidding process for various OPSO maintenance jobs. In particular, from 2007 through 2011, MOLENAAR would submit bids for OPSO work in the names of his respective companies but, with the knowledge and participation of, among others, Sens, he would also submit phony or fake bids for these same projects in the names of other local companies, in an effort to give the appearance of a competitive bidding process. In many cases, the phony bids would intentionally be higher than the bids from MOLENAAR and, consequently, Sens would award the work to MOLENAAR.
In exchange for this rigged bidding process, according to court documents, MOLENAAR provided Sens with various things of value. For example, from 2007 through 2011, MOLENAAR provided approximately $30,000 in cash to Sens, as well as the digging and installation of a pool at a residence owned by Sens, at no cost to him.
MOLENAAR faces a maximum penalty of five years imprisonment, three years supervised release, a $250,000 fine, and a $100 special assessment. Sentencing has been set for October 16, 2013, at 1:30 PM.
The case was being investigated by special agents of the Federal Bureau of Investigation. The case is being prosecuted by Assistant U. S. Attorneys Matt Chester and Jon Maestri.
(Download Factual Basis )
Oklahoma City Man to Serve Six Months in Prison for Making Threat to Commit Violence in WyomingRead the Press Release
Oklahoma City, Oklahoma – Today, GLENN ALLEN KIRKHAM, 34, of Oklahoma City, Oklahoma, was sentenced by United States District Judge Robin Cauthron to serve six months in prison for making a threat to commit violence in Casper, Wyoming, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
On January 14, 2013, public officials in and around Casper, Wyoming, received numerous reports from various sources of a threatened attack in Casper using multiple types of weapons. The threat had been posted from Oklahoma City on 4chan.org, an internet-based bulletin board service. The posting was quickly distributed throughout social media and caused significant concern in the community. The threat came not long after Casper had experienced a homicide/suicide at a local college. As a result of the threat, officials immediately took precautions that included placing 40 schools on lockdown, notifying hospitals and nursing homes, and placing police officers at potential locations of an attack.
Kirkham pled guilty on March 20, 2013. At today’s sentencing hearing, Judge Cauthron noted that even though the defendant had no criminal history and may have viewed the threat as some sort of joke, incarceration was important as a deterrent to those tempted to use the internet to cause wide-spread fear and disrupt public services.
This case is the result of an investigation by the Federal Bureau of Investigation and the Casper Police Department in Wyoming. The case was prosecuted by Assistant U.S. Attorneys Mark A. Yancey and Scott E. Williams.
North Braddock Man to Spend 10 Years in Prison for Participating in Heroin ConspiracyRead the Press Release
PITTSBURGH, Pa. - A suburban Pittsburgh man has been sentenced in federal court to 10 years imprisonment and three years supervised release on his conviction of conspiracy to distribute and possess with the intent to distribute heroin, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Russell Franklin, 26, of North Braddock, Pa.
According to information presented to the court, Franklin participated in a conspiracy to distribute and possess with the intent to distribute heroin between February 2011 and April 2011.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Monroeville Police Department for the investigation leading to the successful prosecution of Franklin.
Newark, N.J., Man Sentenced to More Than 16 Years in Prison for Illegal Firearm/drug PossessionRead the Press Release
CAMDEN, N.J. – A Newark, N.J., man who was convicted earlier this year on drug and weapons charges was sentenced today to 200 months in prison, U.S. Attorney Paul J. Fishman announced.
Jimmil Henderson, 30, was convicted by a federal jury on Jan. 29, 2013, on all three counts of a superseding indictment: possession of cocaine and marijuana with intent to distribute, possession of a firearm in furtherance of a drug trafficking offense and unlawful possession of a loaded handgun by a convicted felon. Henderson was convicted following a five-day trial before U.S. District Judge Joseph H. Rodriguez, who imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence at trial:
On Feb. 18, 2011, Newark Police Department officers were patrolling the area of Lincoln Park in Newark and saw Henderson engaging in a hand-to-hand drug transaction. Upon seeing the officers, Henderson ran through Lincoln Park, tossing a 9mm firearm loaded with 11 rounds of ammunition into the park. When the officers apprehended him at the corner of Broad and Pennington streets, they recovered quantities of cocaine and marijuana.
In addition to the prison term, Judge Rodriguez sentenced Henderson to five years of supervised release.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Thomas J. Cannon; and the Newark Police Department, under the direction of Police Director Samuel A. DeMaio and Chief Sheilah A. Coley, for the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Dara A. Govan and Special Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
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Defense counsel: Michael Huff Esq., PhiladelphiaNew York Landowner and New Jersey Solid Waste Company Sentenced for Illegally Dumping in Upstate, New YorkRead the Press Release
Cross Nicastro, Dominick Mazza, and his company, Mazza & Sons Inc., were sentenced today and yesterday in federal court in Utica, N.Y., for conspiring to violate the Clean Water Act, Superfund statute, and to defraud the United States by illegally dumping thousands of tons of asbestos-contaminated construction debris on a 28-acre piece of property on the Mohawk River in upstate New York. In addition, the Mazza defendants were also sentenced on charges of obstructing justice and making false statements to law enforcement.
U.S. District Judge David N. Hurd sentenced Dominick Mazza to 51 months in prison to be followed by three years of supervised release, to pay a $75,000 criminal fine and $492,000 in restitution. In addition, Judge Hurd sentenced Mazza & Sons Inc., to pay a $100,000 criminal fine and $494,000 in restitution and cleanup costs, and imposed five years corporate probation. The court also ordered that Mazza & Sons’ recycling facility fund and implement an environmental compliance plan to prevent future environmental violations at their Tinton Falls, N.J., operation. The compliance plan is to be administered by a third party auditor. On Tuesday, Cross Nicastro was sentenced to 33 months in prison and three years of supervised release and to pay $492,494 in restitution and a $25,000 criminal fine.
The defendants were convicted in October 2012 after a three week trial in Utica. According to the trial evidence, the defendants conspired to fill in the entire property over the course of five years with pulverized construction and demolition debris that was processed at New Jersey solid waste management facilities (to include Mazza & Sons Inc.) and then transported to Cross Nicastro’s property in Frankfort, N.Y. The plot was uncovered by law enforcement just months after the defendants began the operation, having already dumped at least 400 truckloads of debris at the site. Much of the material that was dumped was placed in and around waters of the United States and some of the material was found to be contaminated with asbestos. The conspirators then concealed the illegal dumping by fabricating a New York State Department of Environmental Conservation (DEC) permit and forged the name of a DEC official on the fraudulent permit.
“Mazza and his co-conspirators are being held justly accountable for egregious environmental crimes, for putting the public’s health at risk, and for lying to federal investigators,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Had law enforcement not stopped their scheme, these conspirators could have dumped thousands of tractor trailer loads of debris in an area that contained wetlands. These laws are intended to protect the environment and the public’s health from exposure to toxic materials, and as this case clearly demonstrates, we will vigorously prosecute those who violate them.”
“The closure of this case demonstrates that illegal dumping and fraud are serious offenses that will not be tolerated in New York State,” said New York State Department of Environmental Conservation Commissioner Joe Martens. “DEC is proud of the collaborative work of our investigators to halt these illegal practices and bring the perpetrators to justice, and will continue to enforce state and federal laws that protect our environment and the health of New Yorkers.”
“The defendants illegally dumped thousands of tons of asbestos-contaminated construction debris in and around waterways in upstate New York,” said Cynthia Giles, Assistant Administrator of EPA’s Office of Enforcement and Compliance Assurance. “This case should serve as notice that EPA and its partner agencies will prosecute people who 'cut corners' by avoiding the costs of handling or disposing of asbestos properly.”
This case was investigated by Criminal Investigators with the New York State Environmental Conservation Police, Bureau of Environmental Crimes, Special Agents from the EPA's Criminal Investigation Division and the Internal Revenue Service, investigators from the New Jersey State Police Office of Business Integrity Unit, the New Jersey Department of Environmental Protection, and the Ohio Department of Environmental Protection The case is being prosecuted by Assistant U.S. Attorney Craig A. Benedict of the Northern District of New York, and Trial Attorneys Todd W. Gleason and Gary Donner of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.
New Haven Woman Sentenced to Three Years in Federal Prison for Distributing Crack CocaineRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that TIFFANY MARTINEZ, 24, of New Haven, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 36 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
MARTINEZ is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants and seizures of narcotics and firearms. During the course of the investigation, MARTINEZ sold crack cocaine out of a Fair Haven residence on behalf of a co-defendant.
MARTINEZ was arrested on June 5, 2012. On January 4, 2013, she pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute 28 grams or more of cocaine base (“crack”).
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Native Mob Member Sentenced for MurderRead the Press Release
MINNEAPOLIS— Late this afternoon in federal court, a member of the Native Mob street gang was sentenced to 516 months in federal prison for shooting and killing fellow gang member Jeremee Kraskey. United States District Court Judge John R. Tunheim sentenced Shaun Michael Martinez, also known as Tinez, on one count of murder resulting from carrying and using a firearm during and in relation to a crime of violence. Since the federal justice system does not utilize parole, Martinez will serve virtually his entire sentence behind bars.
On July 19, 2012, Martinez was charged with the crime by way of a superseding indictment. He pleaded guilty on December 21, 2012. In his plea agreement, Martinez admitted that on February 26, 2011, he killed Kraskey to prevent him from offering law enforcement information about the Native Mob’s criminal activities, which were, at the time, the subject of a multi-jurisdictional investigation. Martinez specifically admitted driving Kraskey to a residence in the 3500 block of 14th Avenue South in Minneapolis, where he shot Kraskey three times, fatally wounding him.
The Native Mob is a regional criminal gang that originated in Minneapolis in the early 1990s. Members routinely engage in drug trafficking, assault, robbery, and murder. Membership is estimated at 200, with new members, including juveniles, regularly recruited from communities with large, young, male, Native American populations. Association with the gang is often signified by wearing red and black clothing or sporting gang-related tattoos.
Martinez was part of a federal case filed against 25 members of the Native Mob, many of whom were charged with violating the federal Racketeering Influenced and Corrupt Organizations Act (“RICO”). That law prohibits conspiring to conduct illegal activity through a criminal enterprise—in this instance, the Native Mob—in an effort to preserve, protect, promote, and enhance the enterprise’s power, territory, and financial gains.
To that end, members of the Native Mob distributed illegal drugs, from crack cocaine to ecstasy. They also provided monetary support to members, including those incarcerated; shared with one another police reports, victim statements, and other case discovery; hindered or obstructed officials from identifying or apprehending those wanted by the law; and intimidated witnesses to gang crime. Moreover, they maintained and circulated firearms for gang use and committed acts of violence, including murder, against individuals associated with rival gangs.
This case was the result of a long-term, cross-jurisdictional investigation conducted by numerous local, state, federal, and tribal law enforcement officers dedicated to making Minnesota’s streets and communities safer. These agencies included representatives from the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; the U.S. Drug Enforcement Administration; the U.S. Bureau of Indian Affairs; the FBI-funded Headwaters Safe Trails Task Force; the Paul Bunyan Drug Task Force; the Minnesota Department of Corrections; the Minnesota Bureau of Criminal Apprehension; the Carlton County Sheriff’s Office; the Mille Lacs Tribal Police Department; the Bemidji Police Department; and the Minneapolis Police Department. These investigators were assisted by those from—in alphabetical order—the Becker County Sheriff’s Office, the Beltrami County Sheriff’s Office, the Carlton County Attorney’s Office, the Cass County Attorney’s Office, the Cass County Sheriff’s Office, the Crow Wing County Sheriff’s Office, the Douglas County Sheriff’s Office of Wisconsin, the Duluth Police Department, the Fon du Lac Tribal Police Department, the Fridley Police Department, the Itasca County Sheriff’s Department, the Hennepin County Attorney’s Office, the Hennepin County Sheriff’s Office, the Hubbard County Sheriff’s Office, the Leech Lake Tribal Police Department, the LCO Reservation Police Department, the Lower Sioux Tribal Police Department, the Mahnomen County Sheriff’s Office, the Minnesota State Patrol, the Mille Lacs County Attorney’s Office, the Mille Lacs County Sheriff’s Office, the New Brighton Police Department, the North Central Drug Task Force, the Prior Lake Police Department, the Red Lake Tribal Police Department, the Redwood County Sheriff’s Office, Richfield Police Department, the Sherburne County Sheriff’s Office, the St. Paul Police Department, the U.S. Marshals Service, the Minneapolis Violent Offender Task Force, the Washington County Sheriff’s Office, and the White Earth Tribal Police Department.
This case was prosecuted by Assistant U.S. Attorneys Andrew R. Winter and Steven L. Schleicher.Monett Man Charged with Armed Bank Robbery; Public's Help Sought to Locate FugitiveRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Monett, Mo., man has been charged in federal court with robbing a Great Southern Bank branch in Springfield at gunpoint.
Joseph K. Meierotto, 49, of Monett, was charged with bank robbery in a criminal complaint that was filed in the U.S. District Court in Springfield on Tuesday, June 18, 2013.
Federal authorities are seeking the public’s assistance in locating Meierotto, a fugitive from justice who has been identified through bank surveillance photos. Although he has been charged in the bank robbery, Meierotto has not been arrested. Anyone with information about his whereabouts is encouraged to contact the FBI at (417) 882-3303. Meierotto should be considered armed and dangerous.
According to an affidavit filed in support of the federal criminal complaint, Meierotto initially entered Great Southern Bank, 507 E. Kearney St., Springfield, at about 5 p.m. on Friday, June 14, 2013, under the pretense of conducting bank business. Meierotto left the bank and allegedly returned a short time later carrying a gun and demanding cash. Meierotto made his getaway in a vehicle which had previously been reported stolen from Barry County, Mo., the affidavit says. That vehicle has since been recovered. However, Meierotto remains at large.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FBI.Mission Man Charged with Assault with A Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Francisco Maldonado, age 40, was indicted by a federal grand jury on June 12, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 19, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 10 years in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Maldonado is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Maldonado was remanded to the custody of the U.S. Marshals pending trial. A trial date has been set for August 13, 2013.
Minneapolis Felon Indicted for Possessing 4 FirearmsRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 47-year-old Minneapolis felon was indicted for possessing four firearms. Carl Craig Larson was specifically charged with one count of being a felon in possession of a firearm.
The indictment alleges that on April 21, 2013, Larson possessed a .357-caliber revolver, a seven-millimeter rifle, and two 12-gauge shotguns. Because he is a felon, Larson is prohibited under federal law from possessing a firearm at any time. Larson was previously convicted in Hennepin County for second-degree murder (1986), financial transaction card fraud (1997), and burglary (1999 and 2010). Because those convictions constituted crimes of violence, Larson will now be subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison for anyone with such a record who is subsequently convicted in federal court for being a felon in possession of a firearm or ammunition. Any sentence will be determined by a federal district court judge.This case is the result of an investigation by the LeSueur and Waseca county sheriff’s offices, and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorneys Julie E. Allyn and Sarah E. Hudleston.
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.
Milton Man Sentenced for Illegally Receiving Nearly $325,000 in Social Security PaymentsRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Randy P. Courville, 53, of Milton, La., was sentenced by U.S. District Judge Elizabeth E. Foote to serve 37 months in prison and three years of supervised release for theft of government money. The judge also ordered Courville to pay $324,818 in restitution.
According to evidence presented at the guilty plea, Courville received Social Security disability payments from early 1995 until March 2012, even though he continuously worked as a self-employed painter. He owned his own business called R.T.’s Painting, which was later changed to Affordable Painting. Courville’s wife and three children also received benefits during this time. Courville was notified by the Social Security Administration (SSA) that if his medical condition improved and if he was able to go back to work, he was obligated to immediately notify the SSA. At no time between 1995 and 2012 did the defendant notify SSA that he was able to work or that he had completed any type of work. Courville pleaded guilty on Feb. 15, 2013.United States Attorney Finley stated, “There are many people who are disabled and need Social Security to make ends meet as they struggle to get back on their feet. This defendant was motivated by greed and made a conscious decision to lie about his ability to work. We will continue to prosecute these types of cases to the fullest extent of the law.”
The Social Security Administration-Office of Inspector General conducted the investigation. Assistant U.S. Attorney Kelly Uebinger prosecuted the case.Michigan Man Indicted by Federal Grand Jury on Illegal Firearm Possession ChargeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that a Michigan man was indicted on June 18 by a federal grand jury sitting in Huntington on illegal firearm possession charges. According to an indictment, Deandrew Fizer III, 23, of Romulus, Michigan, allegedly possessed a .45 caliber pistol on June 7, 2013, near Huntington, W.Va.
Fizer was previously convicted in June 2010 in the Third Judicial Circuit Court of Wayne County, Michigan of felonious assault. He did not have his rights to possess a firearm restored.
Fizer faces up to 10 years in prison if convicted.
The investigation was conducted by the ATF and the Huntington Police Department. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
The case is being brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Note: The charge contained in the indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
Click here to view a copy of the indictment
Miami-Dade Department of Public Works Employee Charged with Accepting Bribes from ContractorRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the filing of a criminal complaint charging defendant George Brown, 50, of Hollywood, FL, with accepting bribes in connection with programs receiving federal funds, in violation of Title 18, United States Code, Sections 666. Brown was arrested yesterday and is scheduled to appear in federal court tomorrow in Fort Lauderdale at 11:00 a.m. before Magistrate Judge Lurana S. Snow.
According to the criminal complaint, Brown was the Roadway Lighting Coordinator for the Department of Public Works (DPW) in Miami-Dade County. In this capacity, Brown was responsible for, among other things, overseeing the installation and/or maintenance of more than 45,000 street lights in the county’s roadway system. In 2011, a lighting contractor allegedly offered to provide Brown with “rewards” in exchange for the DPW’s purchase of the contractor’s lighting products. Brown agreed and subsequently accepted more than $13,000 in bribes from the contractor in 2011 and 2012. As detailed in the complaint, the bribes included appliances, computer equipment, and other merchandise, all paid for by the contractor. Among the merchandise that Brown received from the contractor was a 2.5 ton air conditioning unit, a Samsung stainless steel refrigerator, and a KitchenAid built-in single electric convection oven. The merchandise was either shipped directly to Brown’s home address or picked up by Brown at the contractor’s business in Miami, Florida.
During the investigation, the contractor began to cooperate with law enforcement and recorded the conversations with Brown. In one recorded conversation, Brown assured the contractor that no one else knew about their arrangement. In another recorded conversation, the two discussed delivery to Brown of certain merchandise costing approximately $2,600, in exchange for Brown’s assistance in getting the DPW to purchase more than $40,000 worth of lighting products from the contractor for a project on 27th Avenue in Miami, Florida.
If convicted of the charges in the criminal complaint, Brown faces a possible maximum statutory sentence of up to 10 years in prison.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
A complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Attachment:
Complaint (PDF)
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican Citizen Indicted for Illegal ReentryRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigration and Customs Enforcement, announced today that a 46-year-old year-old native and citizen of Mexico has been charged with Illegal Reentry into the United States.
According to United States Attorney Peter J. Smith, Jesus Briseno-Flores, age 46, a native and citizen of Mexico, in the United States illegally, was charged in a one-count indictment by a federal grand jury in Harrisburg today.
The indictment alleges that Briseno-Flores, an alien who was convicted on February 23, 2009, of Illegal Re-Entry into the United States by a Previously Deported Alien, was previously arrested and deported from the United States on March 3, 2009, did knowingly and unlawfully reenter the United States. He was located by federal immigration agents in Dauphin County, Pennsylvania.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement. It is being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Men Sentenced for Possession of Fake Credit CardsRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Jose Antonio Abreu-Arbolaez, 38, of Cuba, and Yoany Quesada-Romero, 29, of Tampa, Fla., were sentenced by U.S. District Judge Elizabeth E. Foote to each serve 10 months in prison and one year of supervised release for conspiracy to possess more than 15 counterfeit credit cards.
Documents filed into the court record during the guilty plea state that while traveling from Florida to Louisiana on Sept. 26, 2012 to Sept. 28, 2012, Abreu-Arbolaez and Quesada-Romero used counterfeit credit cards to purchase Wal-Mart gift cards. On Sept. 28, 2012, security at a Lafayette Wal-Mart contacted authorities and advised them that Abreu-Arbolaez and Quesada-Romero were using stolen or counterfeit credit cards to purchase Wal-Mart gift cards in and around the Lafayette area.Both were arrested Sept. 28, 2012, in the parking lot of Wal-Mart on West Pinhook Road in Lafayette. During a search of their minivan, 34 counterfeit credit cards displaying Abreu-Arbolaez’s name and 17 fake cards displaying Quesada-Romero’s name were found. The magnetic strips on the back of the counterfeit cards contained information related to real financial institutions that were improperly charged $9,729 for the Wal-Mart gift cards purchased by the defendants. The defendants pleaded guilty March 14, 2013.
“These defendants defrauded private citizens, financial institutions, and a retail business,” Finley said. “We will prosecute anyone who illegally uses other people’s credit to enrich themselves. I want to thank the company’s security personnel and the agencies involved for assisting in bringing the defendants to justice.”
The U.S. Secret Service and the Lafayette Police Department conducted the investigation. Assistant U.S. Attorney Howard C. Parker prosecuted the case.