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Wednesday 19 June 2013
Marion, Virginia Police Chief Arrested on Federal Drug ChargeRead the Press Release
ABINDGON, VIRGINIA -- The Police Chief of the Marion, Va., Police Department was arrested this morning on federal charges related to the distribution of a controlled substance.
Michael Dean Roberts, a.k.a. “Fireball,” age 54, of Saltville, Va., was arrested via a federal criminal complaint earlier this morning and charged with one count of distribution of a controlled substance.
According to a probable cause affidavit filed with the United States District Court for the Western District of Virginia in Abingdon, Roberts is charged with distributing the name brand prescription pain killer Lortab, which contained the schedule III narcotic hydrocodone.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Virginia State Police and the Washington County Sheriff’s Office. Assistant United States Attorney Zachary Lee will prosecute the case for the United States.
A criminal complaint is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Marietta Woman Sentenced to Prison for Social Security FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Patricia Hodges, 66, of Marietta, Ohio has been ordered to repay $141,962 in Social Security benefits she collected on behalf of her dead mother, serve 30 days in prison and six months of home confinement as part of a three-year period of court supervision.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, and Elias Papoulias, Resident Agent in Charge, Social Security Administration Office of Inspector General, announced the sentence imposed today by Senior U.S. District Judge George C. Smith.
Hodges pleaded guilty on February 27, 2013 to one count of theft of government money. According to testimony at the plea hearing by an agent with the Social Security Inspector General, a Social Security Administration official interviewed Hodges at her Marietta home in November 2011. Hodges’ mother would have been 103 at the time and the official wanted proof that Hodges’ mother was still alive. Hodges claimed her mother was on a cruise and planned to live with a niece in New York after the cruise.
Further investigation by the Social Security Administration and Marietta Police concluded that Hodges’ mother had died in 1997 and that Hodges had buried her mother’s body in the back yard of a house in Lake Worth, Florida where they had lived. Florida law enforcement investigators recovered the skeletal remains of Hodges’ mother.
Hodges admitted that she concealed her mother’s death in order to collect $141,962 in Social Security benefits she was not entitled to receive between 1997 and October 2011.
Individuals who want to report suspected cases of fraud can contact the Social Security Office of Inspector General’s Fraud Hotline, 1-800-269-0271, or complete an online fraud reporting form at http://oig.ssa.gov/report.
Stewart commended the investigation by the Social Security Administration’s Office of Inspector General and the Marietta Police, and Assistant U.S. Attorney Dale E. Williams Jr., who represented the United States in the case.
Man Sentenced to 37 Months Imprisonment for Assault on Yakama ReservationRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Jerrel Lee Charles, age 21, was sentenced today for committing an Assault Resulting in Serious Bodily Injury, a crime to which he pleaded guilty in March, 2013. Senior District Court Judge Edward F. Shea sentenced the Charles to a thirty-seven (37) month term of imprisonment, to be followed by a three (3) year term of court supervision following his release from Federal prison. Judge Shea also ordered that Charles complete a mental health evaluation and follow any treatment recommendations of the evaluation professional.
According to information disclosed during the court proceedings, on October 13, 2012, Charles and his girlfriend had an argument at their residence located on the Yakama Reservation, which argument escalated into a physical confrontation. An acquaintance of the couple decided to intervene. The acquaintance retrieved a firearm, struck Charles, and began firing rounds into the air. The acquaintance and the victim then left the residence, entered a vehicle, and began to depart the area. Charles obtained a rifle and fired a shot at the vehicle. The victim was struck by a round fired by Charles. The victim was subsequently transported to the hospital. The Yakama Nation Tribal Police Department and the Federal Bureau of Investigation immediately began an investigation. After discovering what had happened, the law enforcement officers obtained a search warrant for the Charles' residence and the rifle was found in his bedroom. After being advised of his Miranda warnings, Charles admitted he had shot the round that struck the victim. As explained during the court proceedings, Charles has a history of psychiatric hospitalizations.
Michael C. Ormsby said, "The Defendant endangered the lives of innocent people by discharging a firearm in the manner in which he did. The victim in this case is lucky to be alive. This type of conduct will absolutely not be tolerated in the Eastern District of Washington. I commend the Yakama Nation Tribal Police Department and the Federal Bureau of Investigation for their efficient and successful investigative efforts in this case."
This investigation was conducted by the Yakama Nation Tribal Police Department and the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Tom Hanlon.
12-CR-02083-EFS
Man Indicted for Cleveland Bank RobberyRead the Press Release
A grand jury returned a one-count indictment charging Roland Jerome Lamarr, 59, with bank robbery, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Lamarr robbed Charter One Bank located at 1215 Superior Avenue, Cleveland, Ohio, on May 2, 2013.
The case is being prosecuted by Assistant U.S. Attorney Justin Seabury Gould, following investigation by agents of the Federal Bureau of Investigation, and members of the Cleveland Division of Police.
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.
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.
Luis Baena-olivares Sentenced for Illegal ReentryRead the Press Release
LUIS BAENA-OLIVARES, age 52, a citizen of Mexico, was sentenced yesterday in federal court by U.S. District Judge Jay C. Zainey to 37 months imprisonment, announced U. S. Attorney Dana J. Boente. In addition to the term of imprisonment, Judge Zainey ordered that BAENA be placed on three years of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of supervised release.
According to court documents, on March 14, 2013, BAENA pled guilty to a one-count indictment admitting he was an alien who was previously removed and was knowingly and unlawfully found in the United States, in Jefferson Parish, Louisiana on December 18, 2012, without the Attorney General or Secretary of the Department of Homeland Security, having expressly consented to his re-application for admission into the United States. BAENA’s sentence was subject to enhancement based on a previous aggravated felony conviction.
This case was investigated by United States Immigration and Customs Enforcement - Enforcement and Removal Operations and the Jefferson Parish Sheriff’s Office. The case was prosecuted by Special Assistant United States Attorney Robert Weir.
Krista Little Head Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on June 19, 2013, before U.S. District Judge Sam E. Haddon, KRISTA LITTLE HEAD, a 28-year-old former resident of Billings, was sentenced to a term of:
Prison: 125 months
Special Assessment: $100
Supervised Release: 4 years
LITTLE HEAD was sentenced in connection with his guilty plea to conspiracy to possess with intent to distribute methamphetamine.
The government stated it would have proved at trial the following:
On December 8, 2011, members of the Big Sky Safe Streets Task Force (BSSSTF) along with members of the Eastern Montana High Intensity Drug Trafficking Area (EMHIDTA) conducted a controlled drug purchase using a confidential informant (CI). The CI stated LITTLE HEAD could purchase one (1) ounce of methamphetamine for $2,300 from a Hispanic male who goes by the name "Ramiro." The CI arranged to meet LITTLE HEAD at a casino in downtown Billings. The CI met LITTLE HEAD and then both met with "Ramiro" inside the casino. All subjects left the casino and got into a vehicle driven by LITTLE HEAD, traveled a short distance, and met with another subject who was the source. The source was driving a Jeep. The CI said "Ramiro" got out of LITTLE HEAD's vehicle and into the Jeep. "Ramiro" returned to LITTLE HEAD's vehicle and placed a plastic baggie that contained the methamphetamine inside, and said, "all there, it's all weighed." The CI handed "Ramiro" $2,300 for the drugs and they parted ways. The methamphetamine's actual weight was 26.4 grams and 63.8% purity.
On December 9, 2011, another deal was set up using the same CI. LITTLE HEAD agreed to sell the CI one (1) ounce of methamphetamine for $2,300. It was also agreed LITTLE HEAD would receive $100 for "middling" the deal. The CI met LITTLE HEAD at a different casino in Billings. The CI got into LITTLE HEAD's vehicle and they drove to the another casino where they met with "Ramiro." The money was exchanged for the one ounce of methamphetamine and they parted ways. The methamphetamine's actual weight was 27.7 grams and 61.4% purity.
Agents identified "Ramiro" as Ismael Zamora and he has subsequently been prosecuted. When questioned, LITTLE HEAD admitted her role in the conspiracy and distributions, indicating that she met Zamora in November 2011, and helped him distribute methamphetamine in Billings and elsewhere. She admitted to the two distributions to the CI, and also said that she sold smaller amounts of methamphetamine for him as well, usually $100 deals on 6-10 occasions, and delivered methamphetamine from Zamora to another person three times for $700, $400 and $200. LITTLE HEAD's dealings with Zamora ended in January 2012 because she owed him money for methamphetamine and was not able to pay.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that LITTLE HEAD will likely serve all of the time imposed by the court. In the federal system, LITTLE HEAD does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Billings Big Sky Safe Streets Task Force.
Knoxville Resident Sentenced to 20 Years for Using Bomb During Bank RobberyRead the Press Release
KNOXVILLE, Tenn. – Gordon Harold Williams, 49, of Knoxville, Tenn., was sentenced on June 19, 2013, to serve 20 years in prison, by the Honorable Thomas Varlan, U.S. District Court Chief Judge. Upon his release from prison, Williams will serve five years of supervised release. He was also ordered to pay restitution in the amount of $1546.00.
Williams pleaded guilty in July 2012 to the robbery of a BB&T Bank in Knoxville, Tenn., in which Williams threatened bank tellers with a homemade bomb in a backpack.
According to a plea agreement on file with the U.S. District Court Clerk in support of the guilty plea, Williams confessed to having an explosive device in a backpack during the robbery. The device contained bottles of liquid accelerant, gun powder, bird shot and metal screws, which was designed to be detonated with additional liquid accelerant and a lighter. Williams obtained $1546.00 from two bank tellers during the robbery.
Further investigation shortly after the robbery by Federal Bureau of Investigation Safe Streets Task Force (FBI SSTF) and Knox County Sheriff’s Office (KCSO) Major Crimes Unit led to an improvised explosive device located at a Fountain City address. Knoxville Police Department Bomb Squad and Knoxville Fire Department HAZMAT both responded to the scene and recovered the explosive device. The device was sent to the FBI laboratory in Quantico, Va.
“These federal and local agencies collectively and effectively caused this individual to receive a serious sentence for a violent crime with multiple victims and the potential to cause great harm. We thank them for their efforts that keep us safe. With no parole in the federal system, Williams will serve this time, as he should. Others should note the consequences of these actions,” said U. S. Attorney Bill Killian
This matter was a joint investigation of the FBI SSTF and the KCSO Major Crimes Unit. Assistant U.S. Attorney David Lewen, Jr. represented the United States.
Keyser Resident Sentenced to More Than 7 Years Imprisonment on Drug ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Five others appear for Pleas and Sentencings
MARTINSBURG, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II
announced that the following individuals recently appeared in Federal Court in Martinsburg.CHARLES PAGE HAINES, III, age 51, of Keyser, West Virginia, was sentenced to 92 months imprisonment to be followed by six years of supervised release. HAINES was convicted on March 13, 2013, after a two-day trial on one count of “Conspiracy to Distribute Cocaine Base” from June 5 to June 28, 2012; four counts of “Distribution of Cocaine Base” on June 5, June 6 and twice on June 7, 2012; and one count of “Maintaining a Drug-Involved Premise” from June 5 to June 28, 2012, all in Keyser, Mineral County, West Virginia. Trial evidence indicated that HAINES was involved with co-defendants Loren Constantine Brown and Crystal Starr Metz in a conspiracy to distribute cocaine base and provided his residence as a place from which the crack was distributed. HAINES was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was prosecuted by Assistant United States Attorney Zelda E. Wesley and former Assistant United States Attorney Thomas O. Mucklow and investigated by the Potomac Highlands Drug and Violent Crimes Task Force, consisting of officers from the Federal Bureau of Investigation, and the West Virginia State Police - Bureau of Criminal Investigations.
BRANDON LEE SPAUR, age 26, of Martinsburg, was sentenced to 18 months imprisonment to be followed by two years of supervised release pursuant to his earlier entered a plea of guilty to “Possession of a Firearm by a Convicted Felon.” SPAUR was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eastern Panhandle Drug & Violent Crime Task Force, consisting of officers from the West Virginia State Police - Bureau of Criminal Investigation, the Martinsburg Police Department, and the Berkeley County Sheriff’s Department.
RICARDO DIAZ, age 40, of Inwood, West Virginia, entered a plea of guilty to “Possessing Forged and False Identity Documents” on May 8, 2013, in Inwood. DIAZ, who is in custody pending sentencing, faces up to 10 years imprisonment and a $250,000 fine. This case was investigated by US Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI).
KEIRA LEE WIDDOWS, age 31, of Hagerstown, Maryland, entered a plea of guilty to “Making a False Statement in the Acquisition of a Firearm.” WIDDOWS, who is free on bond pending sentencing, faces up to 10 years imprisonment and a $250,000 fine. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
These three cases were prosecuted by Assistant United States Attorney Paul T. Camilletti.
JASON SWISHER, age 30, and JENNIFER N. HILEMAN, age 29, of Bunker Hill, West Virginia, entered pleas of guilty to “Conspiracy to Distribute Heroin.” SWISHER and HILEMAN, who are free on bond pending sentencing, face up to 20 years imprisonment and a $1,000,000 fine. This case was prosecuted by Assistant United States Attorney Robert H. McWilliams, Jr. and investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Kerry Lynn Van Haele Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on June 19, 2013, before Senior U.S. District Judge Jack D. Shanstrom, KERRY LYNN VAN HAELE, a 29-year-old resident of Billings, was sentenced to a term of:
Prison: 46 months
Special Assessment: $100
Supervised Release: 4 years
VAN HAELE was sentenced in connection with his guilty plea to conspiracy to possess with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
In January 2010, agents began investigating a methamphetamine distribution cell out of Las Vegas, Nevada, that was involved in the trafficking of high-purity methamphetamine to Billings. Throughout the course of the investigation, agents learned the identities of members in the criminal organization and began conducting interviews with them.
Agents were advised by numerous sources connected to the distribution of methamphetamine that VAN HAELE was one of the subjects obtaining methamphetamine from "X.X." and his organization, and that she was involved in the re-distribution of the drug. These activities took place on or about May 2010 until September 2010, and occurred within the State of Montana.
Co-conspirators with knowledge of VAN HAELE's activities advised that VAN HAELE allowed at least one package containing methamphetamine to be delivered to her residence. The methamphetamine was then re-distributed.
VAN HAELE admitted to obtaining between one (1) and two (2) pounds of methamphetamine from "X.X." during approximately May 2010 and September 2010. VAN HAELE admitted to re-distributing the methamphetamine she obtained.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that VAN HAELE will likely serve all of the time imposed by the court. In the federal system, VAN HAELE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Billings Big Sky Safe Streets Task Force, the Drug Enforcement Administration, and the U.S. Department of Homeland Security - Homeland Security Investigations.
International Sports Gambling Ring Charged with Racketeering and ExtortionRead the Press Release
United States Attorney Laura E. Duffy and Federal Bureau of Investigation Special Agent in Charge Daphne Hearn announced that 18 members of a violent gambling ring located principally in California and Peru were indicted for operating “Macho Sports”—an illegal Internet and telephone gambling business.
Participants in the scheme were charged with taking millions of dollars in illegal sports wagers over the last decade in the San Diego and Los Angeles areas. Earlier today, FBI agents arrested 15 of the defendants on a sealed indictment in coordinated actions in San Diego and Los Angeles, as well as Oslo, Norway, and Lima, Peru. FBI agents also executed seizure warrants seeking the forfeiture of more than $5 million in property associated with Macho Sports, including a La Jolla property obtained by conspirators with proceeds from the illegal gambling conspiracy. The FBI investigation, which started in 2011, employed wiretaps and undercover agents to infiltrate the organization and uncover the defendants’ illegal gambling activities and extortionate debt collection.
According to the indictment, Jan Harald Portocarrero and Erik Portocarrero ran Macho Sports from Lima, Peru, using the Internet and toll-free telephone lines to accept bets from customers in California. The organization ensured the prompt payment of gambling debts through the use of intimidation, threats, and violence, as well as fostering a violent reputation as to its treatment of delinquent customers. The co-conspirators avoided detection by laundering their illegal proceeds and maintaining a company headquarters and the physical platform for its Internet operations outside the United States. Although originally from California, the Portocarrero brothers set up Macho Sports in Peru after suffering previous gambling arrests or convictions in the United States.
The Portocarreros employed managers in Peru, such as defendant Young Hee Koh, to oversee the enterprise’s telephone and internet operations, resolve disputes, and adjust customers’ lines of credit. The organization also used teams of bookies—such as Amir Mokayef (operating primarily in the San Diego area) and Joseph Barrios (operating primarily in the Los Angeles area)—who were responsible for recruiting customers, paying off winning bets, and collecting on losing bets.
Macho Sports’ bookies often managed their own network of “sub-bookies,” who both recruited customers and delivered payments to the managing bookie. For example, San Diego- -area bookie Mokayef managed the sub-bookies Michael Christopher Iaco, Howard Alan Blum, Michael John Massey, Salvatore Giacomo Groppo, Nilesh Kumar Ambubhai Patel, and Benjamin John William Weber. Los Angeles-area bookie Barrios managed the sub-bookies Charles Edward Sullivan, Emed G. Sidaros, aka Action Ed, Isaac Pete Gharibeh, Dunzmy June Nguyen, and Todd Michael Heflin.
Macho Sports supplied their customers with an account number and password for accessing their gambling accounts on its websites. Bookies instructed their customers that they could place bets with their bookmaker, or by calling Macho Sports’ toll-free numbers, or through their online accounts on the Macho Sports websites. Typically, Macho Sports would extend credit to new customers, so they could begin sports betting without pre-funding their accounts. Macho Sports also provided further extensions of credit to existing customers, so that those customers could wager larger amounts of money than their prior extensions of credit allowed.
The enterprise also used “runners,” such as Randall Lee Irwin and Larry Neil Gold, who dealt directly with customers on behalf of its various bookies. These runners handled customer payments and collections. To ensure prompt payment, Macho Sports fostered a violent reputation about its treatment of delinquent customers. To this end, and because Macho Sports could not rely on the legal system for debt collection, the enterprise used intimidation, threats, and violence against its customers, especially when customers were late in paying their gambling debts.
United States Attorney Duffy observed that billions of dollars are being made outside the law now that technology has made illegal gambling more accessible: “Illegal gambling is a thriving illegal business hiding in plain sight. The Department is committed to combating this crime, which too often is characterized by organized criminals, shady bookies, serious violence and lives in shambles because of gambling addiction.”
Some defendants are expected to be arraigned on the indictment this afternoon before U.S. Magistrate Judge William McCurine, Jr.
DEFENDANTS Case Number: 13CR2196-JLS Jan Harald Portocarrero
Erik Portocarrero
Amir Mokayef
Joseph Barrios
Young Hee Koh
Randall Lee Irwin
Larry Neil Gold
Charles Edward Sullivan
Michael Christopher Iaco
Emed G. Sidaros
Isaac Pete Gharibeh
Dunzmy June Nguyen
Todd Michael Heflin
Howard Alan Blum
Michael John Massey
Salvatore Giacomo Groppo
Nilesh Kumar Ambubhai Patel
Benjamin John William Weber CORPORATE DEFENDANT Macho Sports International Corp. Panama and Peru SUMMARY OF CHARGESCount 1: Racketeering Conspiracy to Conduct Enterprise Affairs (RICO Conspiracy), in
violation of Title 18, United States Code, Sections 1962(c)&(d)Maximum penalties: 20 years in prison, 3 years supervised release; and a $250,000 fine
Count 2: Illegal Gambling Business, in violation of Title 18, United States Code, Section 1955
INVESTIGATING AGENCIES
Maximum penalties: 5 years in prison, 3 years supervised release; and a $250,000 fineFederal Bureau of Investigation
Internal Revenue Service – Criminal InvestigationAn indictment itself is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Insider Theft of over $150,000 from Indian Casino Results in Criminal Embezzlement and Tax Charges Against Chickasha CoupleRead the Press Release
Oklahoma City, Oklahoma – KIMBERLY DAWN LOGSDON and WILLIAM MICHAEL LOGSDON, both of Chickasha, Oklahoma, have been indicted by a federal grand jury in connection with the embezzlement of over $150,000 from the Silver Buffalo Casino and failure to file federal tax returns, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
The Silver Buffalo Casino is a gaming establishment in Anadarko, Oklahoma, that is owned and operated by the Apache Tribe of Oklahoma. Kimberly Logsdon was employed as a cashier clerk at the Silver Buffalo Casino from July 25, 2007, until her termination on December 3, 2008. According to a second superseding indictment returned yesterday, from January of 2008 until December of 2008, Logsdon double-counted certain winning cashout vouchers presented by casino customers for payment and kept a total of more than $150,000. The indictment charges her husband, William Michael Logsdon, with two additional offenses. First, it alleges that he committed the crime of misprision of a felony, which is failing to notify law enforcement of a crime and taking steps to conceal that crime. Second, it charges him with committing perjury before a federal grand jury.
In two additional counts, the Logsdons are each charged with failing to file federal income tax returns for the 2008 calendar year.
If convicted of casino embezzlement, Kimberly Logsdon faces up to 20 years in prison and a $1,000,000 fine, plus mandatory restitution. William Michael Logsdon faces maximum sentences of three years and five years in prison on the misprision and perjury counts respectively, in addition to maximum fines of $250,000 on each count. If convicted of failure to file a federal income tax return, the Logsdons could be sentenced to one year in prison and fines of $100,000 each. The public is reminded that the indictment is merely an accusation and that the defendants are presumed innocent unless and until proven guilty. Reference is made to the second superseding indictment and other public filings for further information.
This case is the result of an investigation by the Bureau of Indian Affairs and the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Scott E. Williams.
Indictments Returned in Hammond Federal CourtRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana- The United States Attorney’s Office announced that the following Indictments were returned on June 19, 2013:
Steven Borchert, 52, of West Lafayette, Indiana, was charged with filing false tax returns for the years 2001 through 2009.This charge was filed as the result of an investigation by the Internal Revenue Service.This case has been assigned to and will be prosecuted by Assistant United States Attorney Gary Bell.
Miguel Herrera-Torres, 32, of Chicago, Illinois, was charged with reentry of a removed alien.This charge was filed as the result of an investigation by U.S. Homeland Security Investigations.This case has been assigned to and will be prosecuted by Special Assistant United States Attorney Armando Salinas, Jr.
Daniel Thomas Eckstrom, 30, of Lake Station, Indiana, was charged with production of child pornography, distribution of child pornography and possession of child pornography.These charges were filed as the result of an investigation by U.S. Homeland Security Investigations.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jill Koster.
Tyrone Benson, 37, of Hammond, Indiana, was charged with possession of a firearm by a convicted felon.This charge was filed as the result of an investigation by the Drug Enforcement Administration HIDTA Task Force.This case has been assigned to and will be prosecuted by Assistant United States Attorney David Nozick.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Illinois Man Illegally Purchased and Sold PeptidesRead the Press Release
PITTSBURGH, Pa. - A resident of Palatine, Ill., pleaded guilty in federal court to charges of mail fraud, misbranding of drugs and money laundering, United States Attorney David J. Hickton announced today.
Adam F. Higdon, 40, pleaded guilty to three counts before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that Higdon maintained two websites for the illegal distribution of peptides - chemical compounds which require a prescription for dispensation, but which are illegitimately sought by body-builders for muscle enhancement. Higdon deceived the Internet service provider and the FDA by falsely representing on the websites that he was selling these substances "for research use only . . . not for human consumption." During the period from January 2010 until January 2011, Higdon allegedly paid $131,472.50 to acquire the substances from suppliers in the Peoples Republic of China; and he thereafter sold the peptides for $397,662.00.
Judge Ambrose scheduled sentencing for Oct. 15, 2013 at 2 p.m.. The law provides for a maximum total sentence of 20 years in prison and a fine of $250,000 on the mail fraud count; three years in prison and a fine of $250,000 on the misbranding count; and 20 years in prison and a fine of $500,000 on the money laundering count. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Mr. Higdon's bond.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The FDA Office of Criminal Investigations, IRS - Criminal Investigation and the DEA conducted the investigation that led to the prosecution of Higdon.
Idaho Falls Man Sentenced for Possessing Sawed-off ShotgunRead the Press Release
POCATELLO – Timothy Scott Murphy, 25, of Idaho Falls, Idaho, was sentenced today in United States District Court to 39 months in prison, consecutive to the state sentence he is currently serving, followed by three years of supervised release for possession of an unregistered firearm, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Murphy to forfeit the firearm. Murphy pleaded guilty to the charge on May 22, 2012.
During the plea hearing, federal prosecutors informed the Court that on February 21, 2012, Idaho Falls Police officers received reports that Murphy was in possession of a sawed-off shotgun. Law enforcement officers located Murphy at a residence in Idaho Falls. Murphy left the house carrying a sawed-off shotgun, but when he saw the police officers he returned to the house. Following a four-hour standoff, Murphy surrendered to police. The sawed-off shotgun was recovered from inside the house. The firearm, made from a Maverick 12-gauge shotgun, had a barrel length of approximately 16 inches; however, the minimum legal barrel length for shotguns is 18 inches. Shotguns with barrel lengths of less than 18 inches must be registered in the National Firearms Registration and Transfer Record and Murphy had no such firearms registered to him.
The case was investigated by the Idaho Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Husband and Wife Sentenced to Prison for Defrauding HSBC Mortgage Services and HSBC Bank Out of More Than $2 MillionRead the Press Release
Tampa, Florida - U.S. District Judge Elizabeth A. Kovachevich sentenced Michelle Guy (40) to 48 months in federal prison yesterday for conspiracy to commit mail fraud and wire fraud. The court also ordered Michelle Guy to forfeit over 400 high-end purses, shoes, sunglasses, electronics, and other clothing, which are traceable to proceeds of the offense. As part of her sentence, the court also entered a forfeiture money judgment in the amount of $2,205,420.82, which constitutes the proceeds of the mail and wire fraud conspiracy. In addition, Michelle Guy was ordered to serve 100 hours of community service and pay $2,280,263.17 in restitution to HSBC Bank. Michelle Guy pleaded guilty on April 4, 2013.
Previously, on May 7, 2013, U.S. District Judge James D. Whittemore sentenced Michelle Guy’s husband (Kevin Guy) to 37 months in prison for his involvement in the same fraud conspiracy. Kevin Guy pleaded guilty on February 12, 2013.
According to court documents, between February 2001 and August 2011, Michelle Guy worked in various administrative capacities for HSBC Mortgage Services in Brandon, Florida. During her employment, HSBC Mortgage Services maintained an employee Recognition Program. Beginning around January 2007, and continuing through November 2011, Michelle Guy conspired with various individuals, including her husband (Kevin Guy), to defraud HSBC Mortgage Services, Inc. and HSBC Bank by ordering approximately $2,216,776.12 in American Express gift cards, AMEX gift checks, and store gift cards, without authorization. Michelle Guy then directed those gift checks and gift cards to her residence and office. Once the gift cards and gift checks were delivered, Michelle and Kevin Guy deposited the AMEX gift checks into various bank accounts and used the gift cards to go on shopping sprees.
The gift cards and gift checks were used to buy numerous luxury items, including tens of thousands of dollars of merchandise from Gucci, Louis Vuitton, Tiffany’s, Neiman Marcus, and other high-end stores. On June 24, 2011, Kevin Guy used fraud proceeds as a down payment on a 2011 Mercedes Benz S Class with a sticker price of $96,000.00.
During the execution of two search warrants, law enforcement seized approximately seventy-two AMEX gift checks and more than sixty store gift cards associated with Dillard’s, Olive Garden, Target, Banana Republic, Nordstrom, Neiman Marcus, Foot Locker, Walmart, Outback, JC Penney’s, and Darden. Agents also seized over 25 luxury purses, more than 100 pairs of designer shoes, over 100 pairs of jeans, more than twenty pairs of designer sunglasses, four flat screen televisions, two computers, and a high-end refrigerator—all purchased with fraud proceeds.
This case was investigated by the United States Secret Service, the United States Postal Inspection Service, and the Hillsborough County Sheriff's Office. It was prosecuted by Assistant United States Attorneys Simon Gaugush and Anita Cream.
Holden Man Sentenced for Tax EvasionRead the Press Release
BOSTON, MA – A Holden man was sentenced yesterday in federal court in Worcester for committing tax evasion.
David L. Toppin, 47, was sentenced by U.S. District Judge Timothy S. Hillman to 36 months in prison to be followed by two years of supervised release. Toppin also was ordered to pay $716,479 in restitution to the IRS. Toppin was found guilty following a five-day jury trial in January 2013.
Toppin, the sole owner and operator of Pelletizer Group, Inc., did not file federal income tax returns for 1997-1999 until 2006. In the returns, Toppin reported owing $227,199 in federal income taxes for 1997-1999. The evidence at trial showed that Toppin evaded payment of his taxes and tried to impede the IRS’s collection of his income tax by, among other things, placing real estate and checking accounts in his wife’s name and by misleading the IRS about the extent of his assets and income.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Christine Wichers and Sandra Bower of Ortiz’s Economic Crimes Unit.
Henderson Man Sentenced to 15 Years in Federal Prison for Child Pornography ConvictionsRead the Press Release
LAS VEGAS, Nev. – A Henderson man convicted by a federal jury in February of multiple child pornography offenses, was sentenced today to 15 years in federal prison and lifetime supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Richard Carl Brown, 35, was sentenced by U.S. District Judge Robert C. Jones. Brown was convicted on Feb. 15, 2013, of one count of advertising child pornography, one count of transporting child pornography, one count of receipt of child pornography, and one count of possession of child pornography. The federal penalty for the advertising count mandated a sentence of at least 15 years in prison.“Thousands of children, including large numbers of runaway and homeless youth, are exploited in the production and distribution of pornographic materials,” said U.S. Attorney Bogden. “These children are re-victimized for the rest of their lives, as these materials are repeatedly circulated electronically. We will continue to aggressively pursue these defendants who attempt to exploit our children.”
According to the court records and evidence introduced at trial, in September 2011, a Henderson Police Department (HPD) detective initiated an undercover investigation into the possession and online distribution of child pornography. The detective identified an internet protocol address which had numerous files containing child pornography available for sharing on an online network known as Gnutella. Further investigation determined that Brown was the account holder of the internet address.
In October 2011, HPD detectives executed a search warrant at Brown’s house and seized computer equipment. A forensic analysis of the equipment revealed that it contained at least 24,950 images of child pornography, including videos and still images.
The defendant had worked in the computer services industry in the Las Vegas area from 2005 to 2011, and has no prior known felony convictions.
The case was investigated by the Henderson Police Department (HPD) in conjunction with the Southern Nevada Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorneys Amber M. Craig and Roger Yang.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet
safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Frontier Airlines Passenger Indicted by Federal Grand JuryRead the Press Release
DENVER – Mark Michael Bote, age 23, of Thornton, Colorado, was indicted by a federal grand jury in Denver late yesterday, the United States Attorney’s Office and the FBI announced. The charges are one count of interference with flight crew members and attendants and one count of false information and threats. Bote is scheduled to appear before U.S. Magistrate Judge Craig B. Shaffer tomorrow morning, Thursday, June 20, 2013 at 10:00 a.m. for a detention hearing and possibly arraignment. The government has notified the court that it intends to seek detention of the defendant, meaning Bote would not be eligible for bond. The Magistrate Judge will make that decision. Bote could also be asked to enter a plea at tomorrow’s hearing. The defendant is represented by the Federal Public Defender’s Office. The case has been assigned to U.S. District Court Judge Robert E. Blackburn for proceedings once detention and arraignment have been addressed.
According to the FBI affidavit in support of the Criminal Complaint, on June 14, 2013 at 7:20 p.m., the FBI’s airport liaison was notified of an inflight disturbance aboard Frontier Airlines Flight 601 en route from McGhee Tyson Airport in Knoxville, Tennessee to Denver International Airport. Federal agents and task force officers responded to the airport based on the notification.
On board the flight, one passenger noticed Bote seemed nervous, was shaking, had his eyes closed, and was rocking back and forth. A second passenger also noticed that Bote looked nervous, and that his eyes were glazed over. When Bote took his seat he kept his backpack on. A flight attendant asked that he remove it. He put it under the seat in front of him, but would not let completely go of it. Later in the flight a flight attendant asked Bote if he was ok. He reply with the word “bomb” and some other words the flight attendant couldn’t make out. The flight attendant confirmed with him twice to make sure he knew he was saying the word “bomb”.
A third passenger on board who sat next to defendant noted that Bote spent a majority of the flight sleeping. When he suddenly awoke Bote allegedly said “help me help me.” The flight attendant asked what was wrong, and Bote responded “There’s a bomb. There’s a bomb.” He was shaking as he held the backpack. Later, Bote’s backpack was taken from him.
Toward the end of the flight the flight attendants discussed the situation. When Bote said he had a bomb in his carry-on bag the flight attendants consulted with the Captain. On Captain’s orders, the flight attendants initiated bomb procedures which included moving passengers and bags.
One of the passengers advised the flight attendants that she was traveling with Bote, and was a member of his church group. They had been in Tennessee helping build a church. She stated that the defendant was not well.
Further investigation by the FBI revealed that Bote thought someone was stalking him. He was holding on to the backpack because he thought someone put a bomb in it because it felt heavier than it had previously. Bote was arrested pending federal charges.
If convicted of interference with flight crew members and attendants, Bote faces not more than 20 years in federal prison, and a fine of up to $250,000. If convicted of false information and threats, the defendant faces not more than 5 years in federal prison, and up to a $250,000 fine.
This case was investigated by the FBI and the Denver Police Department.
The defendant is being prosecuted by Assistant U.S. Attorney James Allison, Chief of the Criminal Division of the Colorado U.S. Attorney’s Office.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty.
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Fraud and Perjury Charges Filed Against Parma ManRead the Press Release
A grand jury returned a three-count indictment charging Yong Xiang Chen aka Qin Dong, age 37, of Parma, Ohio, with one count of naturalization fraud and two-counts of perjury, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Chen, a citizen of China, lied in his naturalization application and interviews when applying for naturalization by failing to disclose his use of another name when seeking immigration benefits.
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.
The case is being prosecuted by Assistant U.S. Attorney Phillip J. Tripi, following investigation by agents of the Immigration and Customs Enforcement, Homeland Security Investigations.
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.
Four Miami-Dade Residents Charged in $1.5 Million Bank Fraud and Money Laundering Scheme in Connection with Fraudulent Boat Loan ApplicationsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Jeff Atwater, Florida Chief Financial Officer, and J.D. Patterson, Director, Miami-Dade Police Department, announce the unsealing of a 40-count indictment charging four defendants with various counts of bank fraud, money laundering, and wire fraud. The indictment also seeks the forfeiture of criminal proceeds derived from the fraud, including real property and $1,585,657.10. All four defendants were arrested yesterday and made their initial appearances today in front of Magistrate Judge Edwin G. Torres.
The indictment charges defendants Eduardo Hernandez, Jr., 32, of Miami, Alexander Orriols, 43, of Miami Beach, Jose Arias, 50, of Miami, and Milena Hernandez, 30, of Miami, with one count of conspiracy to commit bank fraud (Count 1), and one count of conspiracy to commit money laundering (Count 21). Additionally, the indictment charges various individual defendants with 19 counts of substantive bank fraud (Counts 2-20), 18 counts of money laundering (Counts 22-39), and one count of wire fraud (Count 40).
According to the indictment, the defendants engaged in a bank fraud scheme using straw buyers to obtain loans using false supporting information and documentation. To execute the scheme, the defendants allegedly recruited and induced individuals to act as straw buyers/loan applicants for boats from companies owned by or associated with the defendants. The straw buyers/loan applicants would then submit loan applications to financial institutions. The applications contained false financial information and documentation regarding purported down payments and deposits allegedly made by the straw buyers/loan applicants to the defendants’ boat companies. The defendants also allegedly falsified the financial records of the straw buyers/loan applicants, including IRS W-2 Forms, bank statements and federal income tax returns, and submitted these false financial documents to the financial institutions. Based on these false documents and misrepresentations, the financial institutions approved and issued loans to the straw buyers/loan applicants.
The indictment further alleges that the defendants paid the straw buyers/loan applicants a portion of the loan proceeds that the boat companies received from the lending institutions, as payment for their service and also to cover some of the monthly payments on the loans so as to keep the fraud afloat. The defendants paid the straw buyers/loan applicants in cash and through third party checks to avoid detection. Lastly, the defendants diverted the loan proceeds for their personal use and used some of the money to perpetuate the fraud scheme.
If convicted, the defendants face the following possible maximum statutory sentences: 30 years in prison for conspiracy to commit bank fraud and substantive bank fraud; 20 years for money laundering conspiracy, substantive money laundering (Counts 22-31), and wire fraud; and 10 years for substantive money laundering (Counts 32-39).
Mr. Ferrer commended the ICE-HSI, IRS-CI, Florida Department of Insurance Fraud, and the Miami-Dade Police Department for their outstanding investigative work in this case. The case is being prosecuted by Assistant U.S. Attorney Robert J. Lehner.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
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.
Four Men Arrested for Armed Robbery of New Jersey Target Store on Black FridayRead the Press Release
NEWARK, N.J. – FBI special agents and Union Police Department detectives arrested four New Jersey men this morning in connection with the armed robbery last November of a Target Store in Union, N.J., on “Black Friday,” U.S. Attorney Paul J. Fishman announced.
Darrell A. Carter, 23, of Irvington, Daquaan Vaughn, 35, of Newark, Lavell Jones, 27, of East Orange, and Maryland Liggins, III, 28, of Newark, are charged in a criminal complaint with one count of committing a Hobbs Act robbery. Carter and Vaughn are each charged with an additional count of using a firearm in furtherance of a crime of violence.
All four defendants are scheduled to appear this afternoon before U.S. Magistrate Judge Michael Hammer in Newark federal court.According to the complaint unsealed today:
On Nov. 23, 2012, Carter, Vaughn, Jones and Liggins allegedly carried out an armed robbery of the Target store located on Springfield Avenue in Union on Black Friday – the day after Thanksgiving – which is considered to be one of the busiest shopping days of the year. The defendants each allegedly played different roles in the robbery: Carter and Vaughn entered the store and robbed the store’s employees at gunpoint; Liggins served as the getaway driver; and Jones posed as a shopper in the store and acted as a lookout.
Carter and Vaughn entered the store at 9:47 p.m. and hid in an employee bathroom. An employee eventually attempted to enter the bathroom and Carter and Vaughn physically grabbed the employee, brandishing handguns. Carter and Vaughn restrained the employee’s hands with zip-ties and then demanded the security code to access the store’s cash room. Carter and Vaughn obtained the code from the employee and used it to access a secure hallway that leads to the cash room, where they waited for employees to transport a cash cart from the store’s cash registers to the cash room when the store closed. Carter and Vaughn then rushed into the cash room brandishing guns, ordered the employees to lie on the ground, and stole more than $50,000 from a safe in the cash room before exiting the store and running out to a vehicle driven by Liggins that was parked on the shoulder of nearby Route 78.
The charge of Hobbs Act robbery is punishable by a maximum potential penalty of 20 years in prison. The charge of using a firearm in furtherance of a crime of violence carries a maximum potential penalty of life in prison and a mandatory minimum sentence of seven years, which must run consecutively to any other prison term. Each of these counts also carries a maximum fine of $250,000.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the arrest and charges. He also thanked the Union Police Department for its role in the investigation and Target corporate security for its cooperation.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office General Crimes Unit in Newark.The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
13-257Carter, Darrell A. Et Al. Complaint
Four Kentucky Individuals Sentenced for Roles in Kidapping and Assaulting a Harlan County ManRead the Press Release
Four Harlan County, Ky., relatives were sentenced today by U.S. District Judge Gregory Van Tatenhove for their roles in kidnapping and assaulting Kevin Pennington, a gay man. David Jason Jenkins, known as Jason, 39, received 30 years in prison, Anthony Ray Jenkins, 22, 17 years in prison, Mable Ashley Jenkins, known as Ashley, 20, 100 months in prison and Alexis LeeAnn Jenkins, 20, 8 years in prison.
In October 2012, a federal jury in London, Ky., convicted Jason Jenkins and Anthony Jenkins of kidnapping and conspiracy charges related to the April 4, 2011 assault of Pennington. The jury acquitted the men of violating the sexual orientation provision of the Matthew Shepard James Byrd Jr. Hate Crimes Prevention Act. Testimony at trial established that the two men, who are cousins, carried out the crime with help from their relatives - Ashley Jenkins and Alexis Jenkins, who both pleaded guilty prior to trial to aiding and abetting kidnapping and aiding and abetting the hate crime assault against Pennington. Both women testified against the defendants. The women’s guilty pleas to federal hate crime charges constituted the first federal convictions in the nation under the sexual orientation provision of the Matthew Shepard James Byrd Jr. Hate Crimes Prevention Act.
The evidence at trial established that the four relatives planned in advance of the assault to kidnap Pennington, take him to a remote location and beat him to death. After luring Pennington by false pretenses into a truck driven by Anthony Jenkins, the group drove Pennington up a deserted mountain road into Kingdom Come State Park, where they dragged Pennington into the road and beat him.
The evidence also established that Pennington escaped while the two men were searching in the back of the truck for a tire iron to use to kill Pennington. Pennington ran off the road and threw himself over a ledge, where he hid behind a rock until the group finally gave up searching for him and drove away. Pennington staggered part-way down the mountain, where he found a ranger shack, broke a window and called 911.
Ashley and Alexis Jenkins both testified that they and the men had agreed in advance to lure Pennington into the truck, drive him to a deserted area and beat him because of his sexual orientation. The women also testified that during the beating, they all used anti-gay slurs and that the group intended to kill Pennington.“As the court’s sentence shows, this was a vicious criminal act. The Department of Justice will continue to use every tool in our arsenal to vindicate the rights of victims of violent crimes,” said Roy L. Austin Jr., Deputy Assistant Attorney General, Civil Rights Division. “The Department will also continue to use the Shepard Byrd Act to vigorously investigate hate crimes allegations and work with our state and local law enforcement partners in their efforts to identify these crimes.”
“Justice imposes a heavy price on those who engage in the sort of gratuitous violence that led to this prosecution,” said Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky. “The defendants’ crimes were brutal and cruel. They fully deserve the sentences delivered by the Court. The message is clear-our society will not tolerate such horrific conduct. The team of dedicated professionals who investigated and successfully prosecuted this case are to be congratulated for their fine work. We also thank our state and local partners who played an important role in achieving a just result in this matter.”
“We are pleased that this matter has been successfully resolved and that justice has been done,” said Perrye K. Turner, Special Agent in Charge of the FBI in Kentucky. “We feel the length of the sentences sufficiently reflects the seriousness of these violent acts”
This case was investigated by Special Agents Anthony Sankey and Mike Brown with the FBI and was prosecuted by Assistant U.S. Attorney Hydee Hawkins from the U.S. Attorney’s Office for the Eastern District of Kentucky and Trial Attorney Angie Cha from the Civil Rights Division.
Four Indicted by Elkins Grand JuryRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
The following indictments were also returned by the grand jury this week:
DANIEL JOSEPH NASCEMBENI, age 71, of Petersburg, West Virginia, was named in a two-count Indictment charging him with “Mail Fraud,” and “False Statement of Material Fact in Application for Social Security Income Benefits.” It is alleged that NASCEMBENI used two different names and two separate social security numbers to fraudulently obtain Supplemental Security Income (SSI) benefits, food stamp benefits and welfare benefits.
If convicted, NASCEMBENI faces up to 20 years imprisonment and a $250,000 fine on the mail fraud charge and up to 5 years imprisonment and a $250,000 fine on the false statement charge. This case was investigated by the Social Security Administration.
CHRISTOPHER MICHAEL FISCHER, age 27, of Moorefield, West Virginia, and ROGER ALLEN SEE, age 23, of Lost River, West Virginia, were named in a seven-count Indictment charging them with “Conspiracy to Distribute Methamphetamine.” FISCHER is named in six additional counts and SEE is named in one additional count charging them with the possession of material and pseudoephedrine to be used in the manufacture of methamphetamine. If convicted, FISCHER and SEE face up to 20 years imprisonment and a fine of $1,000,000 on six counts and up to 10 years imprisonment and a $250,000 on one. This case was investigated by the Moorefield Police Department.
JACK FRANCIS GIBBINS, age 35, of Moorefield, West Virginia, was named in a two- count indictment charging him with “Distribution of Heroin” and “Possession with intent to Distribute Heroin and Oxycodone.” If convicted, GIBBINS faces up to 20 years imprisonment and a $1,000,000 fine on each count. This case was investigated by the Hardy County Sheriff’s Department.
These cases will be prosecuted by Assistant United States Attorney Stephen D. Warner. All of the charges contained in the above-referenced indictments are merely accusations
and not evidence of guilt, and each defendant is presumed innocent until and unless proven
guilty.Four Eastern Kentuckians Sentenced for Roles in Kidnapping and Assaulting A Letcher County ManRead the Press Release
LONDON, KY - Four Harlan County, KY., relatives were sentenced today by U.S. District Judge Gregory Van Tatenhove for their roles in kidnapping and assaulting Kevin Pennington, a gay man. David Jason Jenkins (“Jason”), 39, received 30 years in prison, Anthony Ray Jenkins, 22, 17 years in prison, Mable Ashley Jenkins (“Ashley”), 20, 100 months in prison and Alexis LeeAnn Jenkins, 20, 8 years in prison.
In October 2012, a federal jury in London, KY., convicted Jason Jenkins and Anthony Jenkins of kidnapping and conspiracy charges related to the April 4, 2011 assault of Pennington. The jury acquitted the men of violating the sexual orientation provision of the Matthew Shepard James Byrd, Jr. Hate Crimes Prevention Act. Testimony at trial established that the two men, who are cousins, carried out the crime with help from their relatives - Ashley Jenkins and Alexis Jenkins, who both pleaded guilty prior to trial to aiding and abetting kidnapping and aiding and abetting the hate crime assault against Pennington. Both women testified against the defendants. The women’s guilty pleas to federal hate crime charges constituted the first federal convictions in the nation under the sexual orientation provision of the Matthew Shepard James Byrd, Jr. Hate Crimes Prevention Act.
The evidence at trial established that the four relatives planned in advance of the assault to kidnap Pennington, take him to a remote location and beat him to death. After luring Pennington by false pretenses into a truck driven by Anthony Jenkins, the group drove Pennington up a deserted mountain road into Kingdom Come State Park, where they dragged Pennington into the road and beat him.
The evidence also established that Pennington escaped while the two men were searching in the back of the truck for a tire iron to use to kill Pennington. Pennington ran off the road and threw himself over a ledge, where he hid behind a rock until the group finally gave up searching for him and drove away. Pennington staggered part-way down the mountain, where he found a ranger shack, broke a window and called 911.
Ashley and Alexis Jenkins both testified that they and the men had agreed in advance to lure Pennington into the truck, drive him to a deserted area and beat him because of his sexual orientation. The women also testified that during the beating, they all used anti-gay slurs and yelled “Kill the faggot!” and that the group intended to kill Pennington.
“Justice imposes a heavy price on those who engage in the sort of gratuitous violence that led to this prosecution,” said Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky. “The defendants’ crimes were brutal and cruel. They fully deserve the sentences delivered by the Court. The message is clear-our society will not tolerate such horrific conduct. The team of dedicated professionals who investigated and successfully prosecuted this case are to be congratulated for their fine work. We also thank our state and local partners who played an important role in achieving a just result in this matter.”
“We are pleased that this matter has been successfully resolved and that justice has been done,” said Perrye K. Turner, Special Agent in Charge of the FBI in Kentucky. “We feel the length of the sentences sufficiently reflects the seriousness of these violent acts”
This case was investigated by Special Agents Anthony Sankey and Mike Brown with the FBI and was prosecuted by Assistant U.S. Attorney Hydee Hawkins from the U.S. Attorney’s Office for the Eastern District of Kentucky, and Trial Attorney Angie Cha from the Civil Rights Division.
Former Supervisory Official at Nyc Department of Housing Preservation & Development Sentenced to 18 Months’ Imprisonment for Accepting $100,000 BribeRead the Press Release
Earlier today, Luis Adorno, formerly the Supervisory Construction Project Manager of the Department of Architecture and Construction Engineering at the New York City Department of Housing Preservation and Development (HPD), was sentenced to a term of imprisonment of 18 months, followed by 300 hours of community service, for his corruption conviction for taking bribes. As part of his sentence, Adorno also was ordered to forfeit $100,000 in bribery money to the government, representing the proceeds of his crime, and fined $10,000. The sentence was imposed by United States District Judge Nina Gershon at the U.S. Courthouse in Brooklyn, New York.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Daniel R. Petrole, Deputy Inspector General, United States Department of Labor (DOL) Office of Inspector General; and Rose Gill Hearn, Commissioner, New York City Department of Investigation (DOI).
Until his arrest in June 2012, Adorno was employed by HPD, the largest municipal developer of affordable housing in the nation. Adorno was responsible for personally conducting inspections of HPD construction projects and also supervising other inspectors. During 2008 and 2009, a contractor who worked on several HPD construction projects paid Adorno what amounted to a $100,000 bribe for Adorno’s assistance in getting the contractor additional work with HPD. The bribe was structured in a sophisticated manner to ensure that actual cash did not pass through Adorno’s hands. Rather, the contractor paid $100,000 to a real estate developer who was developing several HPD projects, and in return for the $100,000, the real estate developer agreed to give Adorno a 30 percent equity stake in the developer’s company.
Today’s sentencing proceeding is the latest stemming from the government’s wide-ranging investigation into corruption involving the affordable housing industry in New York City. Four real estate developers and two other former HPD officials have pleaded guilty in this district to various charges, including racketeering conspiracy, fraud, and bribery, related to the development of affordable housing in the City. Three additional defendants await trial.
“Luis Adorno admitted that he agreed to put his finger on the scale in favor of a contractor who paid him $100,000 in bribes. By receiving payment in the form of an equity stake in a real estate development company, Adorno sought to create the bribe that would keep on giving. Today’s sentence sends a clear message that any public servant, whether an elected legislator or an appointed official, who betrays the public trust will be prosecuted to the fullest extent of the law,” stated United States Attorney Lynch. Ms. Lynch thanked the Internal Revenue Service, Criminal Investigation, New York; the United States Department of Housing and Urban Development, Office of Inspector General; and the New York City Police Department for their cooperation in this case.
DOI Commissioner Gill Hearn stated, “This ex-City employee lost his job and his bribe money and will soon take up residence in a prison cell. That was not the nest egg he bargained for when he sold his office for a hidden stake in a real estate deal. DOI thanks our federal partners for their shared determination to unearth the facts and demonstrate again that corruption is a losing strategy.”
The government’s case is being prosecuted by Assistant United States Attorneys Cristina M. Posa, Anthony M. Capozzolo, and Claire Kedeshian.
The Defendant
LUIS ADORNO
Residence: Scarsdale, New York
Age: 48Former Student Sentenced for Computer Hacking at University of Central MissouriRead the Press Release
KANSAS CITY, Mo. -- Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former student of the University of Central Missouri was sentenced in federal court today for his role in a computer hacking conspiracy.
Joseph A. Camp, 29, of Kansas City, Mo., was sentenced by U.S. District Judge Brian C. Wimes to three years in federal prison without parole. The court also ordered Camp to pay $61,500 in restitution.
Camp has been in state or federal custody since his prior arrest in a New York investigation in December 2009. Federal charges are still pending in the Western District of New York.
On April 12, 2013, Camp pleaded guilty to an unlawful computer hacking scheme at UCM from March 2009 to March 2010. Camp, who had been a student at UCM in the fall semester of 2009, conspired with Daniel J. Fowler, 23, of Kansas City, Mo., a student and community advisor at UCM. Fowler pleaded guilty to his role in the conspiracy on June 22, 2011 and awaits sentencing. In addition to the computer hacking conspiracy, Fowler also pleaded guilty to one count of computer intrusion causing damage (computer hacking).
Camp and Fowler gained unlawful and unauthorized access to the UCM computer network, which allowed them to view and download large databases of faculty, staff, alumni and student information. They were also able to transfer money to their student accounts and attempted to change grades.
Camp and Fowler developed a computer virus, which they used to infect UCM computers B including an attempt to infect the computer used by the university’s president. They used several strategies to infect computers, such as offering to show vacation photographs on a thumb drive that contained the virus. They successfully distracted and misled at least one UCM administrator and were able to use a thumb drive to download their virus onto his UCM computer. They monitored the administrator’s computer activity and captured his username and password. They used their remote access of this administrator’s computer to remotely turn on the webcam to watch and photograph the administrator sitting at his desk in his office and to download his e-mails. They also obtained the username and password of a residence hall director and used that information to exploit the university’s computer system to conduct financial transactions in an attempt to unlawfully credit their student accounts with UCM funds.
Camp and Fowler successfully used the identities of fellow students, along with their university computer network permissions, to gain access to various portions of the computer network to which they would otherwise not have access. This also enabled them to mask their activities and mislead university authorities as to the identities of those conducting the attacks on the computer network.
Camp and Fowler manually installed the virus on several UCM computers in public areas, such as computer labs and the library. Once the virus was successfully installed on a computer, Camp and Fowler could obtain remote access to the computer, capture a user’s keystrokes, download any of the user’s files and remotely turn on the user’s webcam to watch and photograph the user of the infected computer.
Camp also admitted that he and Fowler obtained access to the affidavit used in support of a search warrant on Camp’s room. Camp used the information in that affidavit to make posts on Facebook.com to communicate threats and harass potential witnesses against them.
Camp was arrested when he traveled to New York in December 2009. After learning that Camp had been arrested in New York, Fowler encrypted and destroyed computer evidence that he thought could be used against him.
This case was prosecuted by Assistant U.S. Attorney Matthew P. Wolesky. It was investigated by the University of Central Missouri Police Department and the FBI.Former Old Saybrook Resident Admits Operating Fraud SchemesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that PAUL E. BRENNAN, 45, formerly of Old Saybrook, Conn., and Phoenix, Ariz., waived his right to indictment and pleaded guilty yesterday before Senior United States District Judge Alfred V. Covello in Hartford to federal fraud offenses.
According to court documents and statements made in court, from approximately March 2009 to August 2011, BRENNAN convinced women with whom he was romantically involved, and other acquaintances, to cash checks for him at financial institutions knowing that the checks were drawn on closed or underfunded accounts and would be returned for nonpayment. BRENNAN also cashed, or had others cash for him, fraudulent checks at check cashing businesses in Connecticut.
Also, from approximately November 2010 to June 2011, BRENNAN defrauded individuals by pitching phony investment deals and soliciting money from victims for fraudulent business ventures. During the scheme, BRENNAN convinced one victim to give him more than $100,000 for property deals and stock market investments, and he convinced other victims to give him money for investments in fraudulently-operated businesses, including BC Property Management and B&D Powerwashing. BRENNAN also persuaded certain victims to grant him authorization to use their credit cards and lines of credit.
In total, BRENNAN’s fraud schemes victimized more than 10 individuals and caused nearly $400,000 in losses to those victims. BRENNAN used much of the money he received from his victims to pay personal expenses.
BRENNAN pleaded guilty to one count of bank fraud and one count of mail fraud. Judge Covello has scheduled sentencing for September 11, 2013, at which time BRENNAN faces a maximum term of imprisonment of 30 years on the bank fraud count and 20 years on the wire fraud count.
BRENNAN has been detained since his arrest in Arizona on February 27, 2013.This matter has been investigated by the Federal Bureau of Investigation, the Old Saybrook Police Department and the State’s Attorney for the Judicial District of New London. The case is being prosecuted by Special Assistant United States Attorney Kerry L. Quinn.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Grady Hospital Employee Indicted for EmbezzlementRead the Press Release
Defendant Stole Over $450,000 From Georgia’s Largest Hospital
ATLANTA - Donald Thomas, the former Assistant Controller for the Grady Memorial Hospital Corporation, was indicted on June 18, 2013, by a federal grand jury for embezzling over $450,000 in public funds.
“Thomas is charged with stealing from a hospital that serves the healthcare needs of thousands of people in the Atlanta community and beyond,” said United States Attorney Sally Quillian Yates. “Because Grady relies on federal funding to provide medical care to those who cannot afford it, money embezzled from Grady cheats both Grady patients and taxpayers.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI launched its criminal investigation into this matter after receiving information that Thomas, a person in a position of trust at Grady Memorial Hospital, was abusing that position and, in fact, embezzling hospital funds. The federal indictment of Thomas should serve as a message that the FBI will aggressively dedicate its various investigative resources in such matters that can adversely impact our healthcare system and those that provide it.”
According to United States Attorney Yates, the charges and other information presented in court: Thomas was employed as Assistant Controller for the Grady Memorial Hospital Corporation (“Grady”) from December 1994 through June 2011. Grady is one of the largest public health systems in the United States and oversees Grady Memorial Hospital, the largest hospital in Georgia. Grady relies significantly on federal funding, including Medicare reimbursement and grants.
The indictment alleges that, beginning in January 2008, Thomas used his access to Grady’s payroll system to fabricate additional compensation, such as vacation pay and severance pay, to be issued to terminated Grady employees. Thomas then altered payroll records so that the additional payments were deposited directly into accounts under his control. In addition, according to the indictment, on two occasions, Thomas created paper checks for falsified compensation made payable to terminated Grady employees. Thomas allegedly forged the employees’ signatures to endorse the checks before depositing them into one of the bank accounts under his control.
According to the indictment, the scheme came to light when a former Grady employee expressed concern that her 2011 W-2 tax form indicated a larger amount of compensation from Grady than she had actually earned or received. Further investigation revealed that her payroll records had been altered and additional pay in her name had been deposited into an account controlled by Thomas. The indictment states that at least twenty former Grady employees received inaccurate tax forms as a result of Thomas’s alleged crimes.
The indictment alleges that over the course of the scheme, Thomas obtained over $450,000 from Grady. Thomas unsuccessfully attempted to cover up his embezzlement by reversing some of the changes that he had made in Grady’s payroll system.
Thomas, 53, of Atlanta, Ga., was arraigned today before United States Magistrate Judge Alan J. Baverman on charges of embezzlement, wire fraud and bank fraud, and was released on bond. The charges carry a maximum statutory penalty of 30 years in prison and a fine of up to $1,000,000. 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.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant's guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorneys Shanya J. Dingle and G. Scott Hulsey are 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.
Former Director of Cleveland VA Medical Center Indicted for Conspiracy, Fraud, Money Laundering and Other ChargesRead the Press Release
The former director of the Cleveland VA Medical Center was indicted on 36 counts, accused of accepting bribes in return for influencing development projects and decisions involving the U.S. Department of Veterans Affairs, law enforcement officials said.
William D. Montague, 61, of Brecksville, was charged with conspiracy to commit honest services mail fraud, bribery, money laundering, multiple counts of wire fraud, mail fraud, disclosing public contract information and other charges.
The indictment is part of the Cuyahoga County corruption investigation.
“As a Veterans Affairs Medical Center Director, William Montague misled staff and misused his position to enrich himself and businesses pursuing contracts with the Veterans Administration,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The arrest of Montague reflects law enforcement’s continued dedication to root out corruption at any level.”
“Violating the public trust for personal gain cannot be tolerated, particularly at the expense of our nation’s heroes,” said Gavin McClaren, United States Department of Veterans Affairs – Office of Inspector General, Resident Agent in Charge, Cleveland.
The Louis Stokes Cleveland VA Medical Center was approximately the fifth-largest in the country, annually serving about 95,000 veterans who lived in 24 counties in Northeast Ohio. Montague began working for the VA in 1975 and served as director of the Cleveland VA Medical Center from 1995 until his retirement in 2010, according to the indictment.
The VA had been operating medical facilities in both Brecksville and the Wade Park neighborhood in Cleveland. In the early 2000s, the VA began exploring the feasibility of consolidating the facilities into one location, known as the VA Development Project. The combined facility would include a domiciliary, office space and parking, according to the indictment.
The VA selected Business 42 to develop and managed the VA Development Project. Michael Forlani was the sole member of Business 42, and he had multiple other business interests, including as president and part-owner of Doan Pyramid LLC, according to the indictment.
Forlani is currently serving eight years in prison after pleading guilty to racketeering, bribery and other charges.
On or about Jan. 1, 2010, Business 66 began operations, having purchased Doan’s assets. Business 66 operated out of Doan’s former office space and retained many Doan employees, according to the indictment.
Montague solicited and accepted gifts, payments and other things of value from Forlani and Business 66, including a consulting contract between Business 66 and House of Montague, a financial services company Montague started in 2008, according to the indictment.
The indictment details numerous instances between 2007 and 2010 in which Montague took actions on behalf of Forlani or others. Those activities include helping expedite getting a bond rating from Standard & Poors and desired ratings, help getting desired legal opinions from the VA, help getting desired parking rates, and other activities.
Montague retired from the VA on Feb. 3, 2010, about a month after Business 66 began operations. On Feb. 15, 2010, Business 66 issued a check to House of Montague for $2,750, the first of many approximately monthly checks. On Dec. 29, 2010, Montague became a member of the Business 66 Board of Advisors, according to the indictment.
From about Feb. 15, 2010 through May 2012, Business 66 paid House of Montague $156,750, according to the indictment.
In a different scheme, Montague entered into a consulting agreement with a company identified as Business 73, headquartered in Virginia. The company agreed to pay Montague $2,500 a day for a minimum of 24 days, between July 1, 2008 and July 1, 2009, while Montague was still employed by the VA, according to the indictment.
Montague emphasized his ability to access key decision makers in the VA quickly and effectively as one of the reasons he could help Business 73 develop joint ventures and/or expand services provided by the VA. Montague told an official at Business 73 that he had consulted with a VA ethics panel and that he had authorization to do the consulting work as long as he took vacation time to perform the work. In fact, Montague had no such authorization, according to the indictment.
The case was prosecuted by Assistant United States Attorneys Antoinette T. Bacon and Nancy L. Kelley following an investigation by the FBI and United States Department of Veterans Affairs – Office of Inspector General.
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 offenses and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
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.
Florida Man Convicted of Defrauding U.S. InvestorsRead the Press Release
BOSTON – A Florida man was convicted today following a jury trial for his role in a scheme to defraud investors from across the country out of millions of dollars.
Alan Gilner, 78, of New Smyrna Beach, Fla., was convicted of conspiracy, mail fraud, wire fraud and money laundering following a seven-day jury trial. Last month, Randi A. Bochinski, a Canadian citizen, pleaded guilty to wire fraud, mail fraud, and money laundering for his role in the scheme.
Gilner was convicted for his role in a conspiracy to promote a series of high-yield investment programs. Gilner and Bochinski promised investors significant returns on their investments within a short amount of time. Gilner recruited United States-based investors, including friends and acquaintances in Florida, and also advertised in an investment newsletter that was distributed throughout the United States. Gilner often made the initial presentations selling the high yield investments and brought Bochinski in when he needed assistance in convincing someone to invest. Once investors sent their money to either Gilner or Bochinski, the defendants diverted the invested funds for other uses, including their own personal use.
In order to lull investors into believing that their funds had been invested as promised, Bochinski and Gilner often made at least some of the promised “return” payments, using other investor money to fund the “returns.” In some instances, Bochinski and Gilner attempted to return principal to frustrated investors by using counterfeit checks.
U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Gilner on September 26, 2013. Bochinski is scheduled to be sentenced on October 3, 2013.
The statutory maximum penalty for the conspiracy charge is five years in prison, to be followed by three years of supervised release and a $250,000 fine. The statutory maximum penalties for the mail and wire fraud charges are 20 years in prison, to be followed by three years of supervised release and a $250,000 fine. The statutory maximum penalty for the money laundering charge is 10 years in prison, to be followed by three years supervised release, and a $250,000 fine.
United States Attorney Carmen M. Ortiz, Kevin Niland, Inspector in Charge of the United States Postal Inspection Service, and William P. Offord, Special Agent in Charge of the U.S. Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by the Assistant U.S. Attorneys Sarah E. Walters and Stephen E. Frank of Ortiz’s Economic Crimes Unit.
Five Stark County Residents Accused of Laundering $530,000 from Illegal Bookmaking OperationRead the Press Release
A federal grand jury returned a two-count indictment charging five Stark County residents with being engaged in a conspiracy to launder more than $530,000 obtained through the operation of an illegal sports bookmaking operation, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Joseph D. Nemeth, age 49, Rhonda S. Albaugh, age 45, both of Uniontown, Ohio, Joseph M. Nemeth, age 75, Helen C. Nemeth, age 75, and Robert T. Johns, age 66, all of Canton, Ohio, are indicted in count one with conspiracy to launder monetary instruments.
Joseph D. Nemeth faces an addition count of transmitting wagering information in interstate commerce. He is accused of being engaged in the business of betting and wagering and with using one or more wire communication facilities for the transmission and interstate commerce of bets and wagers and information assisting in the placing of bets and wagers on one or more sporting events and contests.
The indictment alleges that all of the defendants from conspired to launder at least $530,000 generated from an illegal sports bookmaking operation between 2004 and 2013. All but $15,000 of these transactions occurred after November 1, 2008, according to the indictment.
Joseph D. Nemeth conducted a sports bookmaking operation by accepting wagers on professional and college basketball and football games. He collected a percentage off the bets and used offshore Internet gambling services to record and process bets placed by his gamblers. He travelled to various businesses and residential locations to meet with bettors, reconcile accounts and collect or pay money, according to the indictment.
Joseph D. Nemeth instructed Robert Johns and other gamblers to pay some of their loss debts to him by paying Rhonda Albaugh by check, which she then deposited into various bank accounts.
Joseph D. Nemeth and Albaugh opened numerous credit card and bank accounts and utilized them to receive payments from various gamblers. They also took illegal gambling proceeds and invested them into real estate and construction projects, which were titled in the names of others, including Helen Nemeth and Joseph M. Nemeth, according to the indictment.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including a defendant’s prior criminal record, if any, a defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the United States Secret Service and its Money Laundering Task Force. The matter was presented to the grand jury by Assistant United States Attorneys Robert E. Bulford and Robert J. Patton.
An indictment is only a charge and is not evidence of guilty. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Five Men Convicted in Record Crystal Meth SeizureRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr., announced that five men have been convicted in connection what is believed to be the largest seizure of crystal methamphetamine (or “ice”) in the state of Michigan. In June of 2012, a confidential informant told the Department of Homeland Security about a large amount of crystal meth that was being offered for sale in Southwestern Michigan. A Michigan State Police undercover officer was introduced to a person selling the meth, and several undercover purchases were made. In August of 2012, more than 20 pounds of pure crystal meth were seized from a vehicle and pole barn in Van Buren County. The meth had a wholesale value of nearly $1/2 million, and is believed to be the largest seizure of crystal meth in Michigan.
Five men were indicted for conspiracy and possession with intent to distribute the seized methamphetamine. Four of those men, Alejandro Garcia, age 45, of Grand Junction, MI; Thomas Streich, age 59, of Lawton, MI; and Jon Jeannin, Jr., age 33, and Brent Kellerman, age 25, both of the Kansas City, MO area; pled guilty to the conspiracy charge before trial. On June 18, 2013, a federal jury in Grand Rapids found Jose Sierra-Villegas, age 39, of Kansas City, MO, guilty of the conspiracy and possession with intent to distribute charges, following a five day trial before the Hon. Robert J. Jonker.
Alejandro Garcia was recently sentenced to 108 months in prison for his role in the conspiracy. The other defendants remain in custody awaiting sentencing of up to life in prison.
U.S. Attorney Miles praised the cooperative effort of federal, state and local law enforcement agencies in this investigation: “This case prevented an extremely large amount of crystal meth from flooding our community. It is an excellent example of what can be accomplished when federal, state and local law enforcement agencies share their resources and focus their mutual attention on a large drug trafficking group.” The case was investigated by the U.S. Department of Homeland Security Investigations (HSI), the federal Drug Enforcement Administration (DEA), and the Michigan State Police Metropolitan Enforcement Team (MET), with assistance from other state and local agencies.
The case was prosecuted by Asst. U. S. Attorneys John Bruha and Hannah Bobee.
END
Federal Jury Convicts Mexican National on Marijuana Importation and Trafficking ChargesRead the Press Release
ALBUQUERQUE – Earlier today, a federal jury sitting in Las Cruces, N.M., found Manuel Paulino Alvarez-Valdez, 36, of Juarez, Mexico, guilty on marijuana importation and trafficking charges after a three-day trial. The jury’s guilty verdict was announced by U.S. Attorney Kenneth J. Gonzales and Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) El Paso.
Alvarez-Valdez was arrested on marijuana importation and trafficking charges on Nov. 20, 2012, after U.S. Customs and Border Protection (CBP) officers found approximately 418 pounds of marijuana concealed in compartments under the bed and floorboards of his pickup truck during an inspection at the Santa Teresa, N.M., Port of Entry. In Feb. 2013, Alvarez-Valdez was indicted on those same charges. Trial of the case began on June 17, 2013, and concluded this afternoon when the jury returned a guilty verdict against Alvarez-Valdez on both counts of the indictment.
The evidence at trial established that, on Nov. 20, 2012, Alvarez-Valdez entered the United States at the Santa Teresa Port of Entry driving a pickup truck. At the time, Alvarez-Valdez claimed ownership of the truck. A CBP officer directed Alvarez-Valdez to a secondary inspection after evidence of tampering was found on the truck. During the secondary inspection, the truck was next X-rayed and the X-ray showed anomalies in the bed area. When the truck’s bed was dismantled, the officers found 228 bundles of marijuana weighing an aggregate of 418 pounds.
After the marijuana was discovered, Alvarez-Valdez was arrested. During post-arrest questioning, Alvarez-Valdez initially claimed that he borrowed the truck to travel to El Paso, Texas, where he intended to purchase two vehicles. After the officers reminded Alvarez-Valdez that he previously had claimed ownership of the truck when he first entered the port of entry, Alvarez-Valdez admitted ownership of the truck. Thereafter, Alvarez-Valdez claimed that the truck remained on a used car lot because he was making payments toward buying the truck, but he claimed that he was permitted to borrow the truck as needed.
The jury deliberated approximately three hours before returning a guilty verdict.
Alvarez-Valdez has been in federal custody since his arrest in Nov. 2012, and remains detained pending his sentencing hearing which has yet to be scheduled. At sentencing, Alvarez-Valdez faces a federal prison sentence of not less than five years and not more than 40 years. Alvarez-Valdez will be deported after serving his prison sentence.
This case was investigated by HSI’s Las Cruces office and the CBP at the Santa Teresa Port of Entry, and is being prosecuted by Assistant U.S. Attorneys Brock Taylor and Mark Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Federal Grand Jury Indicts Man on Conspiracy to Transport Illegal AliensRead the Press Release
Defendant Also Charged with Illegal Reentry After Deportation
DALLAS — A federal grand jury in Dallas returned a three-count indictment today that charges Ignacio Garcia, 32, with one count each of conspiracy to transport illegal aliens, transporting illegal aliens and illegal reentry after deportation, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Garcia has been in custody since his arrest on June 11, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The indictment alleges that on June 11, 2013, Garcia conspired to transport, by means of a motor vehicle for the purpose of commercial advantage and private financial gain, aliens who entered and remained in the U.S. The indictment further alleges that on June 11, 2013, Garcia, an alien, was in the U.S., having been deported and removed from the U.S. in March 2011. Public documents, filed in U.S. District Court for the Southern District of Texas, note that Garcia was convicted of transporting undocumented aliens and sentenced in November 2010 to 13 months imprisonment, to be followed by deportation.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. Upon conviction, however, the conspiracy count and the substantive transportation of illegal aliens count each carry a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. The illegal reentry count, as charged, carries a maximum statutory penalty of 20 years in federal prison and a $250,000 fine.
The case is being investigated by U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
Fayette Co. Man Who Previously Pleaded Guilty to Child Pornography Charges Indicted by A Federal Grand Jury for Failing to Appear for SentencingRead the Press Release
CHARLESTON, W. Va. – A Fayette County man who previously pleaded guilty to possession of child pornography charges was indicted on June 18 by a federal grand jury sitting in Huntington for allegedly failing to appear for a May 2012 sentencing hearing, announced U.S. Attorney Booth Goodwin. Brett David Bowyer, 34, of Scarbro, Fayette County, W.Va., was charged with one count of failing to appear for sentencing as required by the conditions of his release.
Bowyer failed to appear for sentencing that was scheduled for May 30, 2012 in Bluefield, Mercer County, W.Va. Bowyer previously pleaded guilty in October 2011 to possession of child pornography.
On June 12, 2013, Bowyer was arrested in Florida after being stopped for failing to change lanes for a Brevard County Sheriff’s deputy whose vehicle had its emergency lights flashing.Bowyer faces up to an additional five years in prison and a $250,000 fine if convicted of the charge contained in the indictment.
The United States Marshals Service conducted the investigation. Assistant United States Attorney Lisa Johnston is in charge of the prosecution.
This case is being prosecuted as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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
Edgewater, Maryland Couple Indicted in Scheme to Defraud Sba Disadvantaged Small Business Program and for Filing False Tax ReturnsRead the Press Release
Alleged to Have Fraudulently Obtained Over $50 Million in Government Contracts
Greenbelt, Maryland - A federal grand jury today indicted Vernon J. Smith III, age 61, and his wife, Georgia Smith, age 52, both of Edgewater, Maryland, on charges related to schemes to fraudulently seek federal contracts under a Small Business Administration program to assist socially and economically disadvantaged small businesses; and to file false tax returns.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and General Services Administration Inspector General Brian D. Miller.
“The 8(a) Business Development Program offers significant benefits to eligible small businesses and helps small, disadvantaged businesses compete in the marketplace,” said Inspector General Peggy E. Gustafson of the Small Business Administration. “Preferences for federal contract awards must not be given to persons who lie in order to claim eligibility. We appreciate the support of our law enforcement partners to bring this indictment forward.”
“Individuals who intentionally do not report all of the income earned from businesses they own violate U.S. tax law,” said Thomas J Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “IRS Criminal Investigation is committed to maintaining the integrity of our tax system and ensuring that everyone pays their fair share of taxes.”
According to the 11 count indictment, in August 1999, Vernon Smith caused Platinum One Contracting, a roofing and construction company, to be incorporated. At the time, Smith also owned less than 50% of Capitol Contractors, another roofing and construction company. Capitol Contractors participated in the SBA’s Section 8(a) program, which provides assistance to socially and economically disadvantaged small businesses, including help in obtaining federal contracts. Smith arranged for Anthony Wright, an African-American who was a former roofer and project manager at Capitol Contractors to own 60% of Platinum One and Smith’s son to own the remaining 40% of the corporation. Vernon Smith received the title of senior vice president and Georgia Smith was in charge of accounting and maintaining Platinum One’s books and records. In March 2002, Capitol Contractors was no longer eligible to participate in the Section 8(a) program and Vernon Smith became the company’s president and sole owner, with his wife, Georgia Smith, in charge of accounting and maintaining the company’s books and records.
The indictment alleges that from August 1999 to June 2013, Vernon J. Smith III and Georgia Smith, conspired to defraud the SBA by concealing that Vernon J. Smith controlled Platinum One’s operations, not Anthony Wright. For example, the indictment alleges that Platinum One’s Section 8(a) application did not reveal that Vernon and Georgia Smith had personally guaranteed bonding, bank loans and lines of credit for Platinum One and that Platinum One paid millions of dollars to the Smiths. According to the indictment, these payments included salary, payments to Capitol Contractors; payments to casinos on behalf of Vernon and Georgia Smith; and personal charges by Vernon and Georgia Smith to Platinum One’s credit cards. Based on the fraudulent application, the SBA approved Platinum One for participation in the Section 8(a) program. The indictment alleges that as a result, Platinum One received more than $50 million in contracts from the federal government under the Section 8(a) program, to which it was not entitled.
According to the indictment, the Smiths also caused more than $1 million, which had been transferred from Platinum One to their bank accounts and to casinos on their behalf, to be falsely recorded in Capitol Contractors’ books and records as corporate expenses paid for subcontractors, and concealed this fact from their tax preparer. As a result, the indictment alleges that their tax preparer prepared corporate tax returns for Capitol Contractors which falsely overstated the company’s expenses, and prepared personal income taxes for the Smiths which falsely understated their taxable income, thereby falsely understating the amount of taxes owed to the IRS.
The defendants face a maximum sentence of five years in prison for the conspiracy; and three years in prison for making and subscribing a false tax return and for aiding and assisting in the preparation of false tax returns. Vernon J. Smith III also faces a maximum of 20 years in prison for each count of wire fraud. No court appearance has been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Anthony Wright, age 42, of Bowie, Maryland, pleaded guilty on June 18, 2013, to his role in the scheme and is scheduled to be sentenced on September 30, 2013.
United States Attorney Rod J. Rosenstein praised the SBA Office of Inspector General; Defense Criminal Investigative Service; IRS Criminal Investigation; and the GSA Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory R. Bockin and Trial Attorney Kenneth C. Vert of the U.S. Department of Justice Tax Division, who are prosecuting the case.
East St. Louis Woman Sentenced for Cocaine DistributionRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced that Lucille G. Brim, 42, of East St. Louis, Illinois, was sentenced today in federal district court to 57 months in prison for Possession With Intent to Distribute Cocaine.
Brim pled guilty to the federal charge on March 18, 2013. She has been confined in federal custody since her arrest on December 12, 2012.
At her change of plea hearing last March, Brim admitted possessing six ounces of cocaine when her car was stopped by Metropolitan Enforcement Group Southwestern Illinois (MEGSI) officers in East St. Louis on November 29, 2011. Brim also admitted that the cocaine which she possessed had been intended for sale.
Brim’s new sentence will be served concurrently with an unrelated 30 month sentence which Brim received in United States District Court on August 31, 2012. In the earlier federal case, Brim was sentenced for Distribution of Crack Cocaine and for Maintaining Drug-Involved Premises. After Brim completes her federal prison sentences, she will be required to complete a three year term of supervised release.
The investigation that resulted in Brim’s arrest and conviction was conducted by the Drug Enforcement Administration, MEGSI, the Illinois State Police, and the St. Clair County Sheriff’s Department.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Dakota, Ill., Man Charged in Alleged $120,000 Charity Fraud SchemeRead the Press Release
ROCKFORD — A Dakota, Ill., man was arrested today on federal mail fraud charges relating to his operation of two purported charities. In an indictment filed yesterday, CLIFFORD J. EDWARDS, JR., 33, formerly of Loves Park, Ill., was charged with 20 counts of mail fraud for allegedly defrauding victims out of more than $120,000 in charitable donations that the victims were told would be used to benefit children with cancer, under-privileged children, and children with cleft palates and facial deformities.
Edwards pleaded not guilty at his arraignment today and was released on his own recognizance. A status hearing was scheduled for Aug. 22 in U.S. District Court in Rockford.
According to the indictment, Edwards established and operated two supposed charitable entities: Helping Out, LLC, also known as “Helping Out,” and the Smiles for Kids Foundation, also known as “Smiles for Kids,” “the Smiles for Kids Foundation, Inc.,” “the Smiles 4 Kids Foundation,” and “Smiles 4 Kids.” Edwards ran these entities from locations in Rockford, Loves Park, and Dakota, Ill. The indictment alleges that Edwards and his agents made telemarketing type phone calls on behalf of Helping Out and Smiles for Kids. During these phone calls, Edwards and his agents solicited donations by claiming that Helping Out and Smiles for Kids provided benefits to children with cancer, under-privileged children, and children with cleft palates and facial deformities. It is further alleged that Edward mailed pledge statements, sponsor confirmations, and return envelopes addressed to Helping Out and Smiles for Kids, to the individuals who agreed to make donations. These individuals then mailed their personal checks back to Helping Out and Smiles for Kids in the return envelopes.
The indictment charges that, instead of using the donated funds to benefit children as promised, Edwards used the funds to pay his own personal expenses and to pay fund-raising costs. According to the indictment, Edwards conducted this fraud from at least June 2010 through June 2013.
Each count of mail fraud carries maximum penalties of 20 years in prison and a $250,000 fine, or an alternate fine totaling twice the loss or twice the gain, whichever is greater, a period of supervised release of up to 3 years following imprisonment, and restitution. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines, as well as restitution.
The case was investigated by the United States Postal Inspection Service in Chicago. The investigation was conducted under the auspices of the Financial Fraud Enforcement Task Force, which 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. For more information on the task force, visit: www.StopFraud.gov.
The arrest and indictment were announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Pete Zegarac, Inspector-in-Charge of the Chicago Division of the United States Postal Inspection Service.
Members of the public are reminded that a criminal indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt of the defendant beyond a reasonable doubt.
The government is being represented by Assistant U.S. Attorney Scott A. Verseman.
Indictment
Charlote Woman Sentenced to 5 Years in Prison for $650,000 Medicaid Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Chief U.S. District Court Judge Frank D. Whitney sentenced a Charlotte woman on Tuesday, June 18, 2103, to serve 60 months in prison and two years under court supervision for defrauding Medicaid of $650,000, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Charlotte Elizabeth Garnes, 39, of Charlotte, was also ordered to pay $792,184.52 in restitution.
U.S. Attorney Tompkins is joined in making today’s announcement by Attorney General Roy Cooper, who oversees the North Carolina Medicaid Investigations Division (MID), and Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region.
In sentencing the defendant, Judge Whitney emphasized that the crime had numerous victims, including not only the federal and state governments who fund Medicaid, but also the children and patients whose names and identities were stolen. Judge Whitney observed, “Now they have medical records out there that are outright fraudulent” and noted that the defendant and her co-conspirators not only stole from the taxpayers “but also harm[ed] young men and young women.”
In February 2013, a Charlotte jury convicted Garnes of health care fraud conspiracy, obstruction of official proceedings and false statements relating to health care matters. According to evidence presented at trial and yesterday’s sentencing hearing, Garnes was a Licensed Professional Counselor approved by Medicaid to provide mental and behavioral health services to qualified individuals. Trial evidence established that Garnes claimed to have personally provided mental health services to Medicaid recipients when in fact she did not. Evidence showed that Garnes conspired with others to permit unqualified individuals to submit claims to Medicaid under Garnes’ Medicaid number for therapy services purportedly provided by those individuals. In reality, most of the services were never provided. At Garnes’ trial numerous Medicaid recipients or their parents testified that they or their children never received the therapy services Garnes claimed to have provided.
According to trial evidence, Garnes kept 30% of the paid out Medicaid reimbursements and distributed the remainder to her co-conspirators. From March 2009 to April 2011, Medicaid paid Garnes and her company, Charlotte’s Insight, Inc., approximately $740,349, and approximately 90% of that amount ($666,062) was based upon false claims for services that Garnes did not provide. During trial, the government established that for many of the claimed dates of services Garnes was outside of the country, including in Germany, working on a government contract. The evidence also established that Garnes routinely billed for more than 24 hours of therapy services in a single day, including providing 69 hours of individual therapy services in a single day in December 2009.
Trial evidence demonstrated that Garnes used the fraud proceeds to purchase a Mercedes-Benz vehicle and plastic surgery.
In making today’s announcement, U.S. Attorney Tompkins stated, “Garnes’ first mistake was to steal from Medicaid. Her second mistake was to think she would not get caught. Today’s sentence is a stark warning to those who believe that committing healthcare fraud will not land them in prison. Our District’s Health Care Fraud Task Force consists of a team of determined prosecutors and investigators committed to going after anyone who steals money from taxpayer supported programs put in place to cover the medical needs of needy North Carolinians.”
“Our attorneys and investigators are working closely with our federal partners to find Medicaid violators and make them pay,” Attorney General Roy Cooper said. “Medicaid fraud wastes taxpayers’ money, squanders funds that should go to needed care, and drives up health care costs for everyone. Cases like this one will help discourage other health care providers from cheating.”
Following the sentencing hearing, Garnes was remanded to the custody of the U.S. Marshals Service. She will be transferred into the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by HHS-OIG and MID. The prosecution of the case is handled by Assistant U.S. Attorneys Kelli Ferry and Jenny Grus Sugar of the U.S. Attorney’s Charlotte Office.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Capital District Men Charged in Conspiracy to Provide Material Support to TerroristsRead the Press Release
Scheme included creation of a remotely operated X-ray radiation emitting device designed to kill humans silently
ALBANY, NEW YORK - United States Attorney Richard S. Hartunian and Special Agent in Charge Andrew Vale of the Federal Bureau of Investigation, Albany Division, today announced that Glendon Scott Crawford, age 49, of Galway, New York and Eric J. Feight, age 54, of Hudson, New York have been arrested and charged with conspiracy to provide material support to terrorists in violation of 18 U.S.C. § 2339A. The arrests followed a lengthy investigation by the Albany FBI Joint Terrorism Task Force that began in April 2012 when authorities received information that Crawford had approached local Jewish organizations seeking out individuals who might offer assistance in helping him with a type of technology that could be used against people he perceived as enemies of Israel. If convicted, each faces a maximum sentence of fifteen years imprisonment, a $250,000 fine and a term of supervised release up to five years following any period of incarceration.
Crawford and Feight are scheduled to appear today at 1:30pm before Magistrate Judge Christian F. Hummel in U.S. District Court in Albany, New York.
As charged in a Complaint1 filed in U.S. District Court in Albany, the essence of the defendants’ scheme was the creation of a mobile, remotely operated, radiation emitting device capable of killing targeted individuals silently with lethal doses of X-ray radiation. The defendants plotted to use this device against unwitting victims who would not immediately be aware that they had absorbed lethal doses of radiation, the harmful effects of which would only appear days after the exposure. This was an undercover investigation and, unbeknownst to the defendants, the device that the defendants designed and intended to use was rendered inoperable at all times and posed no danger to the public.
United States Attorney Richard S. Hartunian stated, “This case demonstrates how we must remain vigilant to detect and stop potential terrorists, who so often harbor hatred toward people they deem undesirable. We give special thanks to those who quickly alerted law enforcement authorities to this devious plan. I also commend the members of the Albany FBI Joint Terrorism Task Force for their unwavering commitment over the past 14 months to uncover the details of this plot, before anyone could be harmed bringing about today’s arrests.”
Special Agent in Charge Andrew Vale stated, “I would like to thank all members of our Joint Terrorism Task Force for their continued commitment in ensuring the safety of our community against all threats. It is the obligation of the FBI and our law enforcement partners to protect the public when individuals create plans to commit violent acts such as those charged today. I would like to stress that operations to thwart violent plots are only successful with the cooperation of members of the public and with collaboration among federal, state and local agencies.”
New York State Police Superintendent Joseph A. D’Amico said, “The interception of this alleged terrorist activity would not have been possible without the determination and cooperation between state police investigators and the FBI Joint Terrorism Task Force. This investigation revealed unthinkable plotting and planning of terrorist activity that targeted unsuspecting innocent citizens. We remain committed to ensuring the safety of all citizens and will work diligently to identify these types of threats and stop those who seek to cause harm.
The charges today resulted from a long-term investigation conducted by the Albany FBI Joint Terrorism Task Force, which includes the Department of Homeland Security, New York State Police, Albany Police Department, Troy Police Department, and New York City Police Department. The United States Attorney’s Office also acknowledged the assistance of the Criminal Division and National Security Division of the United States Department of Justice. The case is being prosecuted by Assistant United States Attorneys Stephen Green and Richard Belliss, and Counterterrorism Section Trial Attorney Joseph Kaster.
Further questions or inquiries may be directed to Executive Assistant United States Attorney John G. Duncan at 518-431-0247.
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1The allegations contained in the Complaint are mere accusations and the defendants are presumed innocent unless and until proven guilty in a court of law.
California Man Pleads Guilty to Misrepresenting His Jewelry as Produced by an IndianRead the Press Release
ALBUQUERQUE – Andrew Gene Alvarez, 60, of Wofford Heights, Calif., pleaded guilty this morning to a misdemeanor information charging him with misrepresenting that jewelry he made and offered for sale was made by an Indian. After entering his guilty plea, Alvarez was sentenced to 30 months of probation to be followed by a year of supervised release. As part of his sentence, Alvarez is prohibited from representing that any jewelry he produces is of Indian origin or Indian produced.
Alvarez was indicted in Sept. 2012, and charged with violating the Indian Arts and Crafts Act, 18 U.S.C. § 1159, by falsely representing that jewelry he made and offered for sale was produced by an Indian. According to the indictment, Alvarez made these misrepresentations in May 2011, during the Native Treasures Show at the Santa Fe Community Convention Center.
According to court filings, the FBI initiated an investigation into Alvarez in May 2010, after receiving a referral from the Indian Arts and Crafts Board (IACB) of the U.S. Department of the Interior. The IACB asserted that Alvarez was a prominent jeweler who represented himself as alternatively Mescalero, Apache, Colville and Mayo Indian and marketed his jewelry at the Santa Fe Indian Market, as well as nationally at high-profile Indian arts and crafts events. The IACB also asserted that after due inquiry, it determined that Alvarez was not an enrolled member of a recognized Native American tribe who was entitled to market his work in any manner which suggested that his work was an Indian product.
In May, 2010, Alvarez registered as an exhibitor at the Native Treasures Indian art show in Santa Fe and identified himself as “Andrew Redhorse Alvarez” and as a “Colville/Apache” Indian. During the art show, Alvarez told an FBI agent who did not identify himself as a law enforcement officer that his father was Colville and his mother was Apache. Thereafter, the FBI agent learned that Alvarez told an IACB employee that his heritage was Mescalero Apache, Colville and Mayo during the Santa Fe Indian Market in Aug. 2010.
In May 2011, an FBI agent and a National Park Service criminal investigator made an undercover purchase of jewelry from Alvarez at the Native Treasures show in Santa Fe, where the program specified Alvarez’s tribal affiliation as Colville/Apache and his artistic medium as jewelry. While the officers examined Alvarez’s jewelry, they engaged Alvarez in conversation about his tribal affiliation, the nature of tribal registration, his family background, the Native American jewelry business and the Indian Arts and Crafts Act. When the criminal investigator purchased three pieces of jewelry from Alvarez, Alvarez included three of his business cards on which he had written descriptions of the jewelry and his purported tribal affiliation as “Apache/Colville.”
Court records reflect that Alvarez’s birth certificate identifies both his parents as White with no reference to Indian blood or ancestry. Other official records reflect that Alvarez’s maternal grandparents are of Mexican descent.
The Indian Arts and Crafts Act prohibits the offer or display for sale, or the sale of any good in a manner that falsely suggests that it is Indian produced, an Indian product, or the product of a particular Indian and Indian tribe. It is a “truth-in-advertising law designed to prevent products from being marketed as ‘Indian made, when the products are not, in fact, made by Indians as defined in the Act.” The Indian Arts and Crafts Board was created by the Indian Arts and Crafts Act of 1935 to promote the economic development of American Indian and Alaska Natives through the expansion of the market of authentic Indian arts and crafts products.
The case was investigated by the FBI with assistance from the National Parks Service and the Department of the Interior’s Indian Arts and Crafts Board, and was prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Cabell County Man Indicted by Federal Grand Jury on Illegal Prescription Painkiller Possession ChargeRead the Press Release
CHARLESTON, W.Va. – A Cabell County man was indicted on June 18 by a federal grand jury sitting in Huntington on drug charges. According to a single-count indictment, Eric Lavell Minter, 28, of Huntington, allegedly possessed oxycodone with intent to distribute on May 20, 2013.
Minter faces up to 20 years in prison if convicted.
The investigation was conducted by the DEA and the Huntington Police Department. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
The matter 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.
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
Bus Company and Two Individuals Indicted in Bus CrashRead the Press Release
HOUSTON – Angel De La Torre, 64, and Carlos Ortuno, 52, both of Houston, have been taken into federal custody on charges related to the crash of a passenger bus near Sherman on Aug. 8, 2008, United States Attorney Kenneth Magidson announced today.
The sealed indictment, returned May 30, 2013, was unsealed this afternoon as De La Torre made his initial appearance in federal court before U.S. Magistrate Stephen Smith. Ortuno is set for an appearance tomorrow morning.
De La Torre and his bus company, Angel Tours, have been charged with one count of conspiracy to make false statements, four counts of making false statements and one count of operating a commercial motor vehicle after being placed out of service. Ortuno, an employee of Angel Tours, is charged with one count of conspiracy to make false statements and two counts of making false statements.
The indictment alleges that the defendants made false statements in an Application for Motor Carrier Authority, Form OP-1, and in an Application for U.S. DOT Number, Form MCS-150, filed with the U.S. Department of Transportation, Federal Motor Carrier Safety Administration (FMCSA). De La Torre and Angel Tours also allegedly operated a commercial motor vehicle after being placed out of service due to an unsatisfactory safety rating following a FMCSA inspection that allegedly uncovered numerous record keeping and safety violations.
De La Torre was the president and principal director of Angel Tours, according to the indictment. As such, his duties allegedly included the overall operational and financial management of Angel Tours, including the direct supervision of its employees and independent contractors to ensure its commercial motor vehicle operations were in compliance with FMSCA’s rules and regulations. Additional duties allegedly included scheduling and dispatching the company’s bus drivers on trips and monitoring their locations as well as their fitness to operate a commercial motor vehicle to be in compliance with FMSCA regulations.
According to the indictment, De La Torre had operated a passenger-carrying commercial motor vehicle business since 1994 until on or about Aug. 8, 2008. On that date, the indictment alleges an Angel Tours bus carrying 55 passengers from Houston to Carthage, Mo., crashed on U.S. Highway 75 near Sherman. Seventeen passengers died in the crash and 38 passengers suffered serious to minor injuries.
In May 2008, an FMCSA inspection allegedly uncovered numerous violations. As a result of that inspection, the indictment alleges the FMSCA ordered Angel Tours to cease all interstate transportation on June 23, 2008 - more than two weeks prior to the fatal crash.
Each conviction of conspiracy and/or making a false statement carries as possible punishment up to five years in federal prison and a possible fine of $250,000. If convicted of continuing to operate after and out of service order, De La Torre and Angell Tours further face a one-year term of imprisonment and a $25,000 fine.
The FBI and Department of Transportation - Office of Inspector General investigated. Assistant United States Attorney Mark McIntyre is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Buffalo Man Sentenced for Heroin ConspiracyRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Antonio Almonte, 57, of Buffalo, N.Y., who was convicted of conspiring to possess and distribute more than one kilogram of heroin, was sentenced by U.S. District Judge Richard J. Arcara, to 70 months in prison.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that a criminal investigation began following a traffic stop and search conducted by the Ohio State Highway Patrol in March 2012. Law enforcement officers found 2.4 kilograms of heroin in a truck and trailer, which was en route from Chicago to Buffalo. Almonte, co-defendant Luis Vazquez, and others were transporting the kilograms of heroin from Chicago for distribution in the Buffalo area.
On May 24, 2013, Luis Vazquez was sentenced by Judge Arcara to 51 months in prison for conspiring to possess and distribute more than one kilogram of heroin.
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, and the Ohio State Highway Patrol, under the direction of Colonel John Born.Brookings Man Pleads Guilty to Unlawful Taking of Migratory BirdsRead the Press Release
United States Attorney Brendan V. Johnson announced that Jaron Anderson, age 22, of Brookings, South Dakota appeared before U.S. Magistrate Judge John E. Simko on June 17, 2013 and pled guilty to Count V of the Information that charged him with Unlawful Taking of Migratory Birds and Lacey Act violations.
The maximum penalty upon conviction is 1 year of imprisonment, a $100,000 fine, or both; 1 year of supervised release; an additional year of supervised release upon revocation; and a $25 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an incident wherein Anderson, along with a group of friends known as “Team Those Guys,” hunted between November 24, 2012 and November 29, 2012 in Miner County, South Dakota. Anderson illegally killed 65 geese using an electronic device. Anderson admitted he knew it was illegal to use said device while goose hunting during that time of the year. After killing the geese, they were transported from the field to various locations by Anderson and others in violation of federal law.
The investigation was conducted by the U.S. Fish & Wildlife Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Anderson was released on bond pending sentencing which has been set for August 19, 2013.
Boston Man Sentenced to Four Years in Prison for Gun PossessionRead the Press Release
BOSTON - A Boston man was sentenced late yesterday in federal court for being a previously convicted felon in possession of a firearm.
Emmanuel Mervil, 32, was sentenced by U.S. District Judge Joseph L. Tauro to 48 months in prison to be followed by three years of supervised release. Mervil pleaded guilty on January 7, 2013.In October 2007, Boston Police responded to a 911 call of an armed domestic assault. Upon arrival, the officers were directed to a third floor area where they observed Mervil attempting to climb out the window. Mervil, armed with a firearm, was ordered back into the room and taken into custody. He was found in possession a loaded 9mm semi-automatic handgun.
Mervil was originally arrested and arraigned in the West Roxbury District Court. He was released on bail and defaulted on a court appearance. In 2008, Mervil, a previously convicted felon, was charged in United States District Court where an arrest warrant was issued. The United States Marshal’s Service located and arrested him in March 2012 as he exited a motel in Norwood.
United States Attorney Carmen M. Ortiz; Kenneth Croke, Acting Special Agent in Charge of the Bureau of Alcohol Tobacco, Firearms and Explosives, Boston Field Division; Boston Police Commissioner Edward Davis; and United States Marshal John Gibbons made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Armed Drug Dealer Sentenced to More Than 10 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Miguel Eduardo Silva, 20, of Charlotte, was sentenced on Tuesday, June 18, 2013, by U.S. District Judge Max O. Cogburn, Jr. to serve 127 months in prison, to be followed by three years of supervised release for drug trafficking and firearms offenses, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas and Chief Rodney Monroe of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney Tompkins in making today’s announcement.
In April 2012, a superseding criminal indictment charged Silva with one count of possession with intent to distribute marijuana, one count of attempt to distribute marijuana and one count of use of a firearm in furtherance of such drug trafficking crimes. According to evidence presented at Silva’s trial and yesterday’s sentencing hearing, Silva had arranged a drug deal involving the sale of $60 worth of marijuana to a buyer. Trial evidence established that on the evening of October 3, 2011, the defendant and the buyer met at the parking lot of an apartment complex in Charlotte. The buyer got into the rear seat of Silva’s vehicle, but instead of purchasing the marijuana, the buyer attempted to rob at gunpoint Silva and another front seat passenger of their drugs and money. Court records show that in response, Silva pulled a handgun and shot and killed the buyer. A federal jury convicted Silva on all counts, in September 2012.
In sentencing Silva, Judge Cogburn acknowledged the inherent danger that exists whenever guns and drugs are intertwined.
Silva has been in federal custody in the Western District of North Carolina since his arrest in January of 2012. Upon designation of a federal facility, he will be transferred into the custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
The federal investigation was led by HSI with the assistance of CMPD. The prosecution for the government was handled by Assistant U.S. Attorney J. George Guise of the U.S. Attorney’s Office in Charlotte.
Armando Hernandez-Vaca Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on June 19, 2013, before Senior U.S. District Judge Jack D. Shanstrom, ARMANDO HERNANDEZ-VACA, a 25-year-old resident of Billings, was sentenced to a term of:
Prison: 70 months
Special Assessment: $100
Supervised Release: 5 years
HERNANDEZ-VACA was sentenced in connection with his guilty plea to conspiracy to possess with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
In October of 2010, the FBI Safe Streets Task Force (BSSSTF) received information about a large scale methamphetamine distribution organization operating in Yellowstone County.
In the spring of 2011, law enforcement began performing electronic surveillance on C.M., an individual living in Billings. Investigators discovered that C.M. began supplying the larger methamphetamine organization in late 2010 with methamphetamine after the prior source of supply had a run in with law enforcement.
During the investigation law enforcement learned that HERNANDEZ-VACA delivered methamphetamine to C.M., his co-conspirator, D.M., and several other individuals from approximately April 2011 to October 2011. HERNANDEZ-VACA regularly transported two to three pounds of methamphetamine per trip during his involvement in the conspiracy.
In approximately July of 2011, C.M. was incarcerated on non-drug related charges. D.M. took over the distribution of methamphetamine and collection of money for the organization. HERNANDEZ-VACA also came back to Billings during the same time to bring more methamphetamine and to make sure D.M. could continue the distribution of methamphetamine in the area. Following C.M.'s arrest, HERNANDEZ-VACA became more involved in the actual distribution of methamphetamine to C.M.'s network of distributors and began to collect drug debts from C.M.'s customers.
During the course of his involvement in the conspiracy, HERNANDEZ-VACA distributed over 500 grams of a mixture containing a detectable amount of methamphetamine from places outside of the state of Montana into the Yellowstone County area.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HERNANDEZ-VACA will likely serve all of the time imposed by the court. In the federal system, HERNANDEZ-VACA does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Billings Big Sky Safe Streets Task Force.
Alton Man Pleads Guilty to Firearm OffenseRead the Press Release
On June 19, 2013, Brian L. Edelen, a 24-year old Alton, Illinois, man pled guilty in federal district court, in East St. Louis, to unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Edelen is scheduled for sentencing on September 23, 2013, at which time he faces a maximum potential sentence of 10 years in prison and a fine of up to $250,000, not more than 3 years of supervised release after his prison term, and a mandatory special assessment of $100. Edelen also agreed to forfeit the firearm.
Court proceedings revealed that on April 26, 2012, law enforcement officials conducted a parole compliance check at Edelen’s residence in Alton, Illinois. During the check, a semi-automatic pistol was located hidden in the bottom of a trash can in Edelen’s bedroom. Edelen was placed under arrest and admitted to having a firearm in the home.
This case was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosive and the Illinois Department of Corrections, Parole Division. This case is assigned to Assistant United States Attorney Daniel T. Kapsak for prosecution.
45 Defendants Charged on Gun, Drug Trafficking and Related Offenses Following Undercover InvestigationRead the Press Release
Undercover ATF agents purchased, seized 189 firearms during “Operation Pulaski”
SAVANNAH, GA – 17 federal indictments, unsealed today in federal court, have charged 33 defendants with federal firearm, drug trafficking or other federal offenses. Four defendants were charged by Chatham County authorities on state firearm and drug offenses. Additionally, eight defendants were previously indicted and prosecuted in 2012. All of the federal and state charges derive from a lengthy undercover investigation dubbed “Operation Pulaski.”
The United States Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Savannah-Chatham Metropolitan Police Department (SCMPD) initiated Operation Pulaski in late 2011. During the operation, undercover ATF agents purchased guns and drugs from multiple criminal organizations whose scope ranged from regional to international. The undercover agents were able to infiltrate these organizations over a period of time, ultimately purchasing 189 firearms, including handguns, assault rifles, sawed-off shotguns and machine guns; illegal drugs, including over 200 grams of heroin and more than 4 kilograms of cocaine; and stolen vehicles. The investigation revealed that the vehicles were stolen in the New York City area and then transported to the southeastern United States for resale or for shipment abroad for resale. Agents worked in cooperation with the National Insurance Crime Bureau for the return or re-designation of the automobiles recovered in the investigation. 26 of the individuals who sold firearms and drugs to the undercover agents are alleged to be convicted felons. 11 of the individuals investigated are believed to be illegal aliens. In addition, a number of the guns purchased by undercover agents were previously reported stolen.United States Attorney Edward J. Tarver stated, “The Department of Justice works tirelessly to protect the personal safety and the property of its citizens. Operation Pulaski was a relentless effort to remove illegal guns from the streets of our communities and to halt the illegal sale of guns, especially where the transactions were being conducted by violent criminals. This undercover operation serves as notice to the criminal element that if you traffic in firearms, drugs, or stolen cars in this district, you will be apprehended and you will be prosecuted.”
“This operation is the essence of great law enforcement collaboration and teamwork in removing illegal firearms and narcotics from our communities,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Christopher Shaefer. “ATF and our law enforcement partners stay committed to identifying, apprehending, and prosecuting dangerous criminals and this investigation exemplifies this commitment.”SCMPD Chief Willie Lovett said, “The success of Operation Pulaski was achieved through the coordinated efforts of Metro, the U.S. Attorney and ATF and that cooperation of the three agencies will continue in other operations. The numbers of guns, stolen vehicles and drugs seized in Pulaski are more than significant; they are staggering, considering the criminal history of most of those arrested. I have no doubt those weapons would have been used against innocent victims and the drugs would have ruined lives. We are very appreciative of the agencies that helped make this possible and look forward to this continued relationship.”
Mr. Tarver praised the exemplary partnership between the ATF and the Savannah-Chatham County Metropolitan Police Department, and noted that additional investigative support was provided by United States Immigration and Customs Enforcement (ICE), including Customs and Border Patrol, the National Insurance Crime Bureau, and the United States Secret Service.Following numerous arrests on Tuesday, June 18, and Wednesday, June 19, initial appearances for several of the federally indicted defendants will be held in United States District Court, Statesboro, Georgia, on June 20, 2013. A listing of the 33 defendants newly indicted on federal charges is attached.
Mr. Tarver stressed that an indictment is only an accusation and is not evidence of guilt. All defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
Assistant United States Attorneys Cameron Heaps Ippolito and T. Shane Mayes are prosecuting the federal cases for the United States.
For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Operation Pulaski Defendants
NAME
AGE
HOMETOWN
Alejandro Jorge Barrero-Rojas
29
Bolivia
Akeem Jamal Edwards
22
Savannah, GA
Alvon Mitchell
33
Savannah, GA
Anthony Solis-Reyes
25
Honduran National
Augustin Rubio-Garcia
31
Hardeeville, SC
Cedric Austin
26
Savannah, GA
Demetrius Mumford
28
Savannah, GA
Derrick Stephens
35
Atlanta, GA
Eduardo Cruz-Camacho
32
Savannah, GA
Naquan Trell Elliot
19
Savannah, GA
Eric Dyches
41
Savannah, GA
Hermino Garcia-Rodriguez
25
Garden City, GA
Gustavo Reyes-Sosa
25
Bluffton, SC
Herbert Carter
31
Savannah, GA
Javier Garcia-Rodriguez
29
Garden City, GA
Javier Murillo-Solis
32
Hilton Head, SC
Jeffrey Barnes
50
Savannah, GA
Juan Zapien-Pacheco
26
Hardeeville, SC
Leonardo Moreno-Romero
23
Hardeeville, SC
Luis Alonso
34
Hardeeville, SC
Markus Brown
29
Savannah, GA
Martin Anguiano
45
Ridgeland, SC
Maximigo Ortega
34
Savannah, GA
Michael Holsey
21
Savannah, GA
Miguel Hernandez-Landeros
26
Garden City, GA
Mikael Oliver
18
Savannah, GA
Sonny Vasquez
28
Bluffton, SC
Tyreik Watson
34
Savannah, GA
Walis Parra-Reyes
31
Bluffton, SC
Wendell Brantley
35
Bluffton, SC
Reginald Black
20
Garden City, GA
Roberto Barrero
45
Bolivia
Matthew Vasquez
22
Savannah, GA