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5 August 2013
Randolph County Woman Sentenced on Methamphetamine ConspiracyRead the Press Release
On July 29, 2013, Leila M. Jaimet, 46, of Chester, IL, was sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
Jaimet, who had previously pled guilty to the methamphetamine offense, was sentenced to 78 months in prison, followed by 4 years of supervised release, and fined $300. The offense occurred between January 2011, and January 2013, in Perry, Jackson, and Randolph Counties. Evidence at the plea and sentencing hearings established that Jaimet supplied others with over 94 grams of pseudoephedrine, lithium batteries, lye, ice packs, and liquid fire to be used in the manufacture of methamphetamine. Two other co-defendants have previously been sentenced for their role in the methamphetamine conspiracy. Nine other co-defendants have pled guilty and are awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Randolph County Sheriff’s Office, Perry County Sheriff’s Office, Percy Police Department, Murphysboro Police Department, Sparta Police Department and Drug Enforcement Administration. The United States Marshals Service has also assisted during the investigation.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Pittsburgh Man Admits Role in Fraud SchemeRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh man pleaded guilty in federal court to a charge of conspiracy to produce and utter forged securities, United States Attorney David J. Hickton announced today.
Raymond Davis, a/k/a Mark White, 41, pleaded guilty to one count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, Davis conspired with other persons to use other identities to produce counterfeit checks, and to open charge store accounts.
Judge Ambrose scheduled the sentencing for Dec. 3, 2013, at 11 a.m. The law provides for a maximum total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF) conducted the investigation that led to the indictment in this case. The WPFCTF was established in February 1995 as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud. Partners in this effort include the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Owner of Rocky Mount Based Tax Return Preparation Business Pleads Guilty to ConspiraracyRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, LARRY D. HILL, JR., a resident of Rocky Mount, N.C., pleaded guilty before Senior United States District Judge W. Earl Britt to one count of conspiring to submit false claims for federal income tax refunds to the Internal Revenue Service (IRS), and one count of filing a false 2010 federal income tax return.
“As a local businessman, Larry Hill has held himself out to the public as the ‘people’s champ.’ His guilty plea today to a sweeping tax fraud conspiracy shows us that he was very much the opposite,” commented U.S. Attorney Walker.
“In these challenging economic times, Mr. Hill admitted to conspiring to file false federal income tax returns. In essence, he used the IRS as his personal piggy bank, diverting scarce tax dollars from necessary government services to his pocketbook to fund his lifestyle,” said Special Agent in Charge Jeannine A. Hammett, IRS-Criminal Investigation.
According to the charging documents, HILL owned and operated Hill’s Tax Service (HTS), a tax return preparation business which, at various times, maintained offices in Rocky Mount, Farmville, Scotland Neck, Hollister, and Wilson. Between 2010 and 2012, HILL and his co-conspirators filed well over 2,000 federal income tax returns for HTS customers that claimed, collectively, over $14 million in tax refunds. Most of the HTS returns reported materially false information - including false dependents, income, and withholdings - in order to maximize the earned income tax credit and otherwise cause the issuance of inflated refunds. HILL and his co-conspirators pocketed a portion of every fraudulent tax refund that was issued. According to the criminal information, HILL personally collected, on average, $1,000 or more from each such refund.
At sentencing, HILL faces a statutory maximum penalty of 13 years imprisonment, a $500,000 fine, 4 years of supervised release, and $200 in special assessments.
The investigation of this case was conducted by IRS-Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Adam F. Hulbig.
New York Immigration Judge Participates in Naturalization CeremonyRead the Press Release
NEW YORK -- Immigration Judge Alice Segal from the Executive Office for Immigration Review, New York Immigration Court, delivered the keynote speech and administered the oath of allegiance to approximately 150 candidates during a naturalization ceremony at 26 Federal Plaza in New York on August 2, 2013. The New York District Office of U.S. Citizenship and Immigration Services, Department of Homeland Security, hosted the ceremony.
Biographical Information
Attorney General Eric Holder appointed Judge Segal in October 2010. Judge Segal received a bachelor of arts degree in 1992 from the University of Pennsylvania and a juris doctorate in 1995 from George Washington University Law School. From 2007 to October 2010, she was a senior attorney for U.S. Immigration and Customs Enforcement (ICE), Department of Homeland Security, in New York. From 1998 to 2007, Judge Segal was an assistant chief counsel for ICE, New York. From August 2004 to December 2004, she served as a special assistant U.S. Attorney for the U.S. Attorney’s Office, Eastern District of New York. From 1995 to 1998, she served as a law clerk and attorney advisor for the Executive Office for Immigration Review, Board of Immigration Appeals, entering on duty through the Attorney General’s Honors Program. Judge Segal is a member of the New York State and New Jersey State Bars.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration ReviewMitchell Man Sentenced for Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mitchell, South Dakota, man convicted of Sexual Abuse was sentenced on August 5, 2013, by U.S. District Judge Roberto A. Lange.
Terace Castaway, age 30, was sentenced to 293 months of imprisonment, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Castaway was indicted by a federal grand jury on November 15, 2012, for Aggravated Sexual Abuse of Children, Sexual Abuse, Sexual Abuse of a Minor, and Abusive Sexual Contact of a Minor. Castaway pled guilty to a Superseding Information on May 6, 2013, that charged him with Sexual Abuse.
The charge stems from an incident wherein Castaway, between the 1st day of August, 2008, and the 31st day of May, 2009, did sexually abuse a young girl while she was in his custody and care. While the victim and her cousins were playing a game of hide and seek, Castaway came into the bathroom where she was hiding and sexually assaulted her while the child was fearful for her life. As part of the plea agreement, Castaway also admitted to sexually abusing three other young girls on several occasions while they were at their grandmother’s home in Lower Brule and Castaway was also staying there.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Castaway was immediately turned over to the custody of the U.S. Marshals Service.Memphis Man Sentenced to 292 Months in Prison for Carjacking, Weapons PossessionRead the Press Release
Memphis, TN – Mario Evans, 33, of Memphis, TN, was sentenced to 292 months in prison on Friday following his guilty plea to carjacking, using a firearm during a violent crime, and being a felon in possession of a firearm, announced U.S. Attorney Edward L. Stanton III.
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According to facts presented at sentencing, on July 18, 2008 Evans and an accomplice carjacked a woman in the parking lot of the Walmart located at 3950 Austin Peay Highway, Memphis. Evans brandished a semi-automatic pistol and ordered the woman to exit her 2007 Ford Escape and give him the keys. After she exited the vehicle, Evans demanded her purse and struck the woman on the hand with the pistol, breaking her little finger.
The victim’s son attempted to intervene and Evans pointed the gun at his face and threatened him. Evans and his accomplice then left the scene in the victim’s vehicle. They were picked up shortly thereafter by Memphis Police Department officers.
On August 11, 2011, Evans appeared before U.S. District Judge Samuel H. Mays, Jr. and pleaded guilty to one count of being a felon in possession of a firearm, one count of carjacking, and one count of using a weapon during the commission of a violent crime (carjacking). In addition to the prison sentence, Judge Mays ordered Evans to serve three years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Safe Streets Task Force, which is comprised of investigators from the Federal Bureau of Investigation, Memphis Police Department, Shelby County Sheriff’s Office, Bartlett Police Department, and Germantown Police Department. Assistant U.S. Attorney Daniel French represented the government.Marion Man Pleads Guilty to Multiple OffensesRead the Press Release
Offenses Included Child Pornography and Failure to Appear
Matthew Lee Staszak, 30, an Assistant Chaplain with the United States Navy, formerly stationed in North Carolina, but from Marion, IL, pled guilty in federal district court on August 5, 2013, to Sexual Exploitation of a Minor (Count 1), Travel with the Intent to Engage in Illicit Sexual Conduct (Counts 2 and 3), and Failure to Appear (Count 4), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
At sentencing, Staszak faces a term in prison ranging from not less than fifteen years but not more than thirty years, a fine up to $250,000, and a term of supervised release of not less than five years to life on Count 1. Staszak faces a term of not more than 30 years, a fine up to $250,000, and a term of supervised release of not less than 5 years to life on both Counts 2 and 3. On Count 4, Staszak faces a term of imprisonment of not more than 10 years, a fine up to $250,000, or both, and a term of supervised release of not more than three (3) years. Any sentence imposed on Count 4 must run consecutively to the sentences imposed on Counts 1 – 3. Staszak also agreed to forfeit the vehicle that was used to commit the offenses alleged in Counts 2 and 3. In addition, upon his release from prison, Staszak must register as a sex offender as a condition of his supervised release. Sentencing is scheduled for December 6, 2013, in Benton, Illinois. Staszak has been held without bond since his capture on June 2, 2013.
The investigation revealed that, from approximately February 2011, through May 29, 2012, Staszak engaged in a sexual relationship with minor under the age of 17. Staszak resided in North Carolina while the minor resided in the Southern District of Illinois.
The offense charged in Count 1 occurred in or around June or July 2011, when Staszak filmed himself engaged in sexual intercourse with the minor, who was 16 years old at the time. Staszak and the minor watched the video after it was recorded.
The offense charged in Count 2 occurred on or about March 22, 2011, when Staszak traveled from North Carolina to Williamson County, Illinois, to engage in sexual intercourse with the minor who was 15 years old at the time. The offense charged in Count 3 occurred on or about May 29, 2011, the minor’s 16th birthday, when Staszak again traveled from North Carolina to Williamson County to engage in sexual intercourse with the minor.
Finally, the offense charged in Count 4 occurred on October 4, 2012, when Staszak, who was on pretrial release pending trial, cut off his ankle monitoring bracelet and fled to avoid prosecution, failed to appear at an initial appearance on a superseding indictment before a judge in Benton. Staszak remained a fugitive until he was re-arrested by the US Marshals on June 2, 2013.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources".
The case was investigated by the Calhoun County Sheriff’s Department and the Federal Bureau of Investigation's Springfield Child Exploitation Task Force. The case is assigned to Assistant United States Attorneys Kit Morrissey and Angela Scott.
Manhattan Man Sentenced in Armed RobberyRead the Press Release
TOPEKA, KAN. – A man from Manhattan, Kan., has been sentenced to 20 months in federal prison for aiding and abetting an armed robbery that set in motion a series of events leading ultimately to a deadly arson in which a Kansas State University researcher died, U.S. Attorney Barry Grissom said today.
Dennis James Denzien, 20, Manhattan, Kan., pleaded guilty to one count of aiding and abetting a robbery. In his plea, Denzien admitted that on Feb. 6, 2013, he drove co-defendant Frank Joseph Hanson to Dara’s Fast Lane at 1816 Claflin Road in Manhattan. Wearing a mask and brandishing a revolver, Hanson entered the store. After Hanson robbed the store, Denzien drove him away from the scene of the robbery.
Later that day, Riley County Police Department officers served two search warrants at a residence where Denzien lived with another defendant, Patrick Martin Scahill. Ultimately, investigators recovered a mask, gloves, a backpack and a firearm used in the robbery.
While officers were working to obtain one of the warrants they served at Denzien’s residence, Hanson, Scahill, defendant Virginia Amanda Griese, defendant Gavin Hairgrove and another person met and discussed what would happen if the police searched the residence and how to distract police long enough for Scahill to re-enter the residence and remove incriminating evidence.In the end, Griese drove Scahill to the Lee Crest Apartments at 820 Sunset Avenue in Manhattan. Scahill poured gasoline in a hallway of the building and set a fire, hoping to distract police from searching the residence, which was across the street from the apartments. Vasanta Pallem, a post graduate researcher at Kansas State University who lived on the third floor of the apartments, was overcome by smoke and unable to escape the burning building.
Other defendants include: Frank Joseph Hanson, who pleaded guilty to robbery and is set for sentencing Aug. 12.
Patrick Martin Scahill, who pleaded guilty to arson resulting in a death and was sentenced to 360 months.
Virginia Amanda Griese, who pleaded guilty to arson resulting in death and was sentenced to 240 months.
Gavin Taylor Hairgrove, who is set for trial Oct. 8.Grissom commended all the investigators and law enforcement agencies that worked on the case, including the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Riley County Attorney’s Office, the Riley County Police Department, the Manhattan Fire Department, the Kansas State Fire Marshal’s Office, the Kansas Bureau of Investigations and the Pottawatomie County Sheriff’s Office, as well as Assistant U.S. Attorney Jared Maag, Special Assistant U.S. Attorney Barry Wilkerson and Special Assistant U.S. Attorney Barry Disney, who are prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Man sentenced for transporting minor in interstate commerce to engage in illegal sexual activityRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Timothy Logsdon, 29, of Batavia, NY, who was convicted of transporting an individual in interstate commerce for the purpose of engaging in illegal sexual activity on April 18, 2013, was sentenced to 56 months in prison by U.S. District Judge, Richard J. Arcara.
Assistant U.S. Attorney Maura K. O'Donnell, who handled the case, stated that defendant was convicted of this offense as a result of his attempting to transport a minor from Western New York to Tennessee for purposes of engaging in illegal sexual activity with the minor.The investigation began in September, 2012, when the parents of a 16 year old girl female reported her missing to the Genesee County Sheriff’s Department, and later indicated to the FBI that she might be with the defendant. Pursuant to a Court Order, law enforcement officers traced the defendant’s cellular telephone to a specific vicinity. Later that same day, the defendant was discovered by the Kentucky State Police in Bowling Green, Kentucky, along with the victim. The defendant admitted to law enforcement officers that he was in the process of transporting the victim to the state of Tennessee where the two planned to live together and carry on a relationship. The defendant was placed under arrest and remains in custody.
"This is an example of the success that alert parents and hard working police can accomplish," said U.S. Attorney Hochul.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.The arrest is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Richard M. Frankel, Acting Special Agent in Charge and the Genesee County Sheriff's Department, under the direction of Sheriff Gary Maha.
Major Colombian Narcotics Trafficker Sentenced in Washington, D.C., to 25 Years in Prison for Drug TraffickingRead the Press Release
Christian Fernando Borda, a major narcotics trafficker aligned with paramilitary groups in Colombia, was sentenced today to serve 25 years in prison for conspiring to import ton-quantities of cocaine into the United States, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Administrator Michele M. Leonhart of the Drug Enforcement Administration (DEA).
Borda, 49, aka “Tony,” was sentenced by U.S. District Judge Gladys Kessler in the District of Columbia. Borda’s sentence included a mandatory minimum prison term of 20 years due to his 1998 conviction in the Southern District of Florida for possession with intent to distribute five kilograms or more of cocaine. In addition to his prison term, Borda was sentenced to serve 10 years of supervised release and ordered to pay a fine of $6.5 million.
“Christian Borda will spend 25 years in prison for leading a massive international drug trafficking operation that conspired to move vast quantities of cocaine into the United States,” said Acting Assistant Attorney General Raman. “The substantial prison term secured against Borda would not have been possible without the extensive cooperation between law enforcement in the U.S. and abroad, and it demonstrates our commitment to holding drug traffickers accountable for their crimes.”
“Our relentless pursuit of justice alongside our Colombian partners has ensured Christian Fernando Borda will be punished for his criminal activities,” said DEA Administrator Leonhart. “For years, Borda operated a massive drug trafficking and money laundering enterprise, which facilitated the AUC’s terrorist activities. This successful investigation demonstrates the strong will and skill of the United States and Colombian governments to rid the world of the most dangerous and ruthless drug traffickers and facilitators.”
Following a trial that lasted almost seven weeks, Borda was convicted by a federal jury on Dec. 9, 2010, of one count of conspiracy to distribute five kilograms or more of cocaine, knowing and intending that the substances would be unlawfully imported into the United States.
Borda, a Colombian national, led a major international narcotics trafficking organization based in Colombia that transported ton-quantities of cocaine from Colombia to the United States and elsewhere via Mexico. As the leader of this drug trafficking group, Borda obtained large amounts of cocaine from Colombian sources and directed others who took part in the drug trafficking activities. One of their shipments of cocaine in 2005 involved approximately 1,500 kilograms that were smuggled in a containerized shipment of drums of palm oil on a vessel departing from the north coast of Colombia.
The evidence further showed that Borda conspired with others to distribute tons of cocaine in Colombia, Mexico and elsewhere, with the knowledge and intent that the cocaine would be imported into the United States.
Borda was one of seven defendants charged with drug trafficking offenses in an indictment filed on March 16, 2007. He was extradited to the United States from Colombia in October 2009 and was ordered detained in federal custody pending trial.
Borda’s co-defendant, Alvaro Alvaran-Velez, is scheduled to be sentenced on Sept. 3, 2013, before U.S. District Judge Gladys Kessler in the District of Columbia.
The case was prosecuted by Trial Attorneys Paul W. Laymon and Robert J. Raymond of the Criminal Division’s Narcotic and Dangerous Drug Section, and Charles D. Griffith Jr., now of the Criminal Division’s Office of Enforcement Operations. The Criminal Division’s Office of International Affairs provided significant assistance in the provisional arrest and extradition of Borda, and the Criminal Division’s Asset Forfeiture and Money Laundering Section provided assistance at sentencing. The investigation in this case was initiated by the DEA Miami Field Division in approximately 2004. The DEA Houston Field Division conducted a related investigation. Both investigations were conducted with assistance by the DEA's county offices in Cartagena and Bogota, Colombia, Mexico City and Guadalajara, Mexico. The U.S. Coast Guard provided valuable investigative assistance. The investigation also involved unprecedented cooperation from the Colombian National Police and the Colombian Fiscalia. The case, known as Operation Acapulco Express, was part of an operation assisted by the Organized Crime Drug Enforcement Task Force (OCDETF) in Washington, D.C.Longtime Fugitive Sentenced to 11 Years in Federal Prison for Massive Fraud and Identity Theft Scheme Linked to Foreclosure ScamRead the Press Release
LOS ANGELES – A fraud artist who was a fugitive from justice for over a decade was sentenced this morning to 11 years in federal prison for running a nearly 15-year foreclosure-rescue scam that fraudulently delayed foreclosure sales for more than 800 distressed homeowners.
Glen Alan Ward, 48, a former Los Angeles resident who fled to Waterloo, Canada, was sentenced today by United States District Judge Dale S. Fischer. In addition to his prison term, Ward was ordered to pay $59,961 in restitution and to forfeit approximately $100,000 in cash and property previously seized by law enforcement authorities.
Ward pleaded guilty in April to three separate sets of charges stemming from his 15-year fraud scheme. In 2000, Ward failed to appear in United States District Court in Los Angeles after agreeing to plead guilty and fled to Canada.
In 2002, while he was a fugitive, Ward was indicted on multiple counts of bankruptcy fraud in San Francisco. One year ago, in the third case, Ward was indicted on mail fraud, aggravated identity theft and additional bankruptcy fraud counts in Los Angeles.
While in Canada, Ward recruited Frederic Alan Gladle, who was indicted by federal prosecutors in Los Angeles on bankruptcy fraud and identity theft charges in 2011. Gladle was sentenced last year to 61 months in federal prison (see: http://www.justice.gov/opa/pr/2012/May/12-crm-576.html).
On April 5, 2012, Ward was arrested in Canada by the Royal Canadian Mounted Police (RCMP) and the Waterloo Regional Police Service. On Dec. 21, 2012, Ward was extradited to the United States to answer all three sets of charges.
Ward’s capture was the result of innovative investigative work, as well as close coordination between United States and Canadian authorities. After fleeing the United States in 2000, Ward continued his scheme while in Canada. To avoid being detected while accessing websites he needed for his scheme, Ward used a laptop computer in wireless hotspots away from his home. He also arranged for clients’ monthly payments to be deposited in the bank account of a person in Texas, which he could access with an ATM card. Upon receiving confirmation that client funds had been deposited, Ward would withdraw the funds at one of many Waterloo-area ATMs. Federal agents in the United States were able to identify Ward’s most-frequented wireless locations and his most-frequented ATMs. Using near-real-time information, these agents repeatedly passed along information on Ward’s current or expected whereabouts to Waterloo and RCMP authorities in Canada. These Canadian authorities would then visit the locations as soon as possible, usually missing Ward by only minutes. Finally, Canadian authorities established “stake outs” on multiple ATMs after Ward had received confirmation of a deposit. When Ward visited one of these ATMs, Canadian authorities identified Ward and arrested him.
According to a global plea agreement, Ward led a scheme that solicited and recruited homeowners whose properties were in danger of imminent foreclosure with promises that Ward would delay their foreclosures for as long as the homeowners could afford his $700 monthly fee. Once a homeowner paid the fee, Ward accessed a public bankruptcy database, retrieved the name of a debtor who had recently filed a bankruptcy petition, and directly the client to record a grant deed transferring a tiny interest in their distressed home. Then, after stealing the debtor’s identity, Ward faxed a copy of the bankruptcy petition, a notarized grant deed and a cover letter to the homeowner’s lender, directing it to stop the impending foreclosure sale due to the bankruptcy.
Because bankruptcy filings give rise to automatic stays that protect debtors’ properties, the receipt of the bankruptcy petitions and deeds in the debtors’ names forced lenders to cancel foreclosure sales. The lenders, which included banks that received government funds under the Troubled Asset Relief Program (TARP), could not move forward to collect money that was owed to them until getting permission from the bankruptcy courts, thereby repeatedly delaying the recovery of money for months and even years. Additionally, if a distressed homeowner wanted to complete a loan modification or short sale, they were left to the mercy of Ward to send them forged deeds, supposedly signed by the debtors, to re-unify their title as required by most lenders.
As part of the scheme, Ward delayed the foreclosure sales of approximately 824 distressed properties by using at least 414 bankruptcies filed in 26 judicial districts. During that same period, Ward admitted to collecting more than $1.2 million from his clients who paid for his illegal foreclosure-delay services.
The investigation in this case was conducted by SIGTARP and the FBI, which received substantial assistance from the U.S. Trustee’s Office. In addition, the Office of International Affairs of the Department of Justice, Canadian Waterloo Regional Police Service and Royal Canadian Mounted Police provided assistance in connection with Ward’s arrest and extradition.
This case was prosecuted by the United States Attorney’s Offices in Los Angeles and San Francisco, and the Department of Justice, Criminal Division, Fraud Section.
This prosecution is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. For more information on the task force, visit www.stopfraud.gov.
Release No. 13-099
Lockwood Pleads to Drug ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Dale Lockwood, 60, of Buffalo, N.Y., pleaded guilty to conspiracy to possess with intent to distribute cocaine. The plea, entered before United States District Court Judge Richard J. Arcara, carries a mandatory minimum penalty of 5 years in prison, a maximum penalty of 40 years incarceration, and a $1,000,000 fine.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who is handling the case, stated that the Government’s investigation determined that Lockwood supplied cocaine to John Smith, aka Kazoo, a National Vice President of the Afro Dogs motorcycle club. At the time of his arrest, agents recovered from Lockwood $73,255.00 in US Currency, eight firearms, and various ammunition.
A May, 2013 trial involving Lockwood ended in a mistrial when the jury could not arrive at a verdict. In addition to today’s criminal conviction, Lockwood also faces a criminal forfeiture of an additional $50,000 and any interest he may have in the Afro Dogs Club House at 1093-1095 Genesee Street, Buffalo, New York. The Lockwood conviction closes the Government’s investigation which has resulted in 8 other convictions to date.
Sentencing is scheduled for December 9, 2013 at 12:30 p.m.
This plea is the culmination of an investigation by the Drug Enforcement Administration under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division.Lockport man sentenced on drug conspiracy charge and detroit man pleads guilty to money laudering chargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Justin McTigue, aka “Diddy”, 29, of Lockport, NY, was sentenced to 6 years in prison followed by 4 years supervised release after being convicted of conspiracy to possess with intent to distribute, and to distribute, cocaine base, by U.S. District Chief Judge William M. Skretny.
Also today, LeShawn Woodard, 29, of Detroit, Michigan, pleaded guilty before U.S. Magistrate Judge Leslie G. Foschio, to a money laundering charge for engaging in unlawful monetary transactions involving criminally derived property greater than $10,000 in value, which carries a maximum penalty of 10 years in prison, a $250,000 fine, or both.
McTigue and Woodard are two of twenty defendants convicted as a result of an investigation involving narcotics trafficking in Lockport, New York.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled these cases, stated that McTigue sold cocaine base in the Lockport, New York area from 2009 through August, 2010, which was supplied to him by co-defendant Damian Ard. Ard was convicted of conspiracy to possess with intent to distribute cocaine base, and is scheduled to be sentenced by Judge Skretny on October 1, 2013 at 9:00 a.m.
Regarding defendant Woodard, from March, 2009, through June, 2009, Woodard deposited bank checks into bank accounts, and transferred United States currency in excess of $40,000 on behalf of Will Johnson. These funds were proceeds of Johnson’s drug distribution activities. On December 27, 2012, Johnson was convicted of conspiracy to possess with intent to distribute 5 kilograms or more of cocaine and money laundering conspiracy. Johnson is scheduled to be sentenced by Judge Skretny on August 29, 2013 at 9:00 a.m.
These conviction are the culmination of an investigation by the Drug Enforcement Agency under the direction of Resident Agent in Charge Dale Kasprzyk, Federal Bureau of Investigation under the direction of Richard M. Frankel, Acting Special Agent in Charge, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the Niagara County Drug Task Force.Justice Department Reaches Settlement with the City of Henderson, Nev. to Improve Law Enforcement Communications with People Who Are Deaf or Hard of HearingRead the Press Release
The Justice Department announced today that it has reached a cooperative settlement agreement with the city of Henderson, Nev. under the Americans with Disabilities Act (ADA).
The Justice Department received complaints by individuals who are deaf that officers for the city of Henderson did not provide them with qualified sign language interpreters and other auxiliary aids and services when needed for effective communication. One of the complainants had been arrested and detained for two days in the Henderson detention facility, while the other was an alleged crime victim.
During the course of its investigation into the allegations, the department inquired whether the city of Henderson would be interested in resolving the matter voluntarily. The city expressed its full commitment to ensure compliance with the ADA.
The resulting settlement agreement includes some model ways to ensure people who are deaf or hard of hearing are able to communicate effectively with law enforcement. For instance, officers for Henderson will use a pictogram to ask whether a deaf or hard of hearing person requests a sign language interpreter: www.justice.gov/opa/images/sign-lang-small.gif .
Once the person expresses a need for a sign language interpreter, Henderson has agreed to provide one under most circumstances, usually within an hour of the request.
“People who are deaf or hard of hearing must be able to communicate clearly with law enforcement, whether they are crime victims, witnesses, arrestees, detainees or just members of the public,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division.
“This agreement provides an effective model for Nevada’s – and the nation’s – law enforcement communities to work with deaf and hard of hearing citizens. The people of Henderson should be proud of their city’s leadership, including Mayor Andy A. Hafen and Police Chief Patrick Moers,” said U.S. Attorney for the District of Nevada Daniel G. Bogden. “The commitments made by Henderson are simple and cost-effective; the city will be better able to protect public safety while complying with the Americans with Disabilities Act.”
Under the settlement, the city of Henderson will pay a total of $35,000 to the complainants. In addition, it will renew contracts with qualified sign language interpreters to ensure ready availability, train law enforcement officers, staff members, and volunteers on the ADA, take additional steps to notify the public of the city’s ADA Coordinator, post signs indicating the availability of sign language interpreters and other auxiliary aids and services for people who are deaf or hard of hearing, provide text telephones and volume control telephones, modify its handcuffing policies for people who use sign language or hand writing to communicate, stock and provide hearing aid and cochlear implant processor batteries in the detention facility, and adopt other policies consistent with the ADA.
For more information on the ADA and law enforcement, visit www.ada.gov. Those interested in finding out more about this settlement or the obligations of law enforcement under the ADA may also call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov . ADA complaints may be filed by email to [email protected] .
Justice Department Files Lawsuit Against Texas Bus Company Alleging Employment Discrimination Against U.S. Citizens and Other IndividualsRead the Press Release
The Justice Department announced today the filing of a lawsuit with the Executive Office of Immigration Review’s Office of the Chief Administrative Hearing Officer (OCAHO), against Autobuses Ejecutivos LLC, d/b/a Omnibus Express, a bus company based in Houston.
The complaint alleges Omnibus Express violated the Immigration and Nationality Act’s (INA) anti-discrimination provision by preferring to hire temporary nonimmigrant visa holders over U.S. citizens, certain lawful permanent residents and other protected individuals for bus driver positions. Specifically, the complaint states that from at least September 2012 to February 2013, Omnibus Express failed to consider the applications of many qualified U.S. citizens and other protected individuals, or actively discouraged them from pursuing their applications, while at the same time petitioning the U.S. Department of Labor (DOL) and U.S. Citizenship and Immigration Services (USCIS) for permission to hire up to 50 foreign workers on H-2B visas. The H-2B program allows U.S. employers to bring foreign nationals to the United States to fill temporary nonagricultural jobs when there are not enough U.S. workers who are able, willing or qualified to do the temporary work. The complaint further alleges that Omnibus Express hired 42 H-2B workers during this period, and in doing so, represented to the DOL and USCIS that there were not enough qualified workers in the United States to fill the 50 bus driver positions. The complaint seeks an order prohibiting future discrimination by Omnibus Express, civil penalties, back pay for injured parties and injunctive relief. The INA’s anti-discrimination provision prohibits employers from discriminating in hiring against certain workers based on their citizenship status.
“The nation’s current immigration law protects individuals in the United States, such as U.S. citizens, certain lawful permanent residents, refugees and asylees, from unlawful discrimination in hiring based on their citizenship status,” said Jocelyn Samuels, Acting Assistant Attorney General for the Justice Department’s Civil Rights Division. “We are committed to enforcing the INA so that work-authorized individuals have equal access to employment in the United States.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA, which prohibits employers from discriminating against work-authorized individuals on the basis of citizenship status or national origin in hiring, firing, recruitment or referral for a fee.
For more information about protections against employment discrimination under federal immigration law, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TTY for hearing impaired), OSC’s employer hotline at 1-800-255-8155 (1-800-237-2525, TTY for hearing impaired) or 202-616-5594, sign up for a free webinar at www.justice.gov/crt/about/webinars.php ; email [email protected] ; or visit OSC’s website at www.justice/gov/crt/about/osc .
Judge Imposes Five-year Sentence for Role in Mortgage Foreclosure Rescue ScamRead the Press Release
PHOENIX – On Aug. 5, 2013, Frank Becerra Campos, 66, of San Diego, Calif., was sentenced by U.S. District Judge G. Murray Snow to five years imprisonment, followed by three years of supervised release, for his role in an advance-fee mortgage rescue scam that took place in Arizona and California.
Campos had previously pled guilty to conspiring with two others, Miguel Carrera and Oswaldo Esqueda, to defraud more than 250 distressed homeowners out of approximately $675,000 in up-front fees with false promises of mortgage modification assistance. Campos’ prison sentence was the maximum allowed by statute, and Campos was ordered to pay back the fees to the victims in the form of restitution.
FBI Special Agent in Charge Douglas G. Price, Phoenix Division, stated “Arizona has suffered greatly when the housing market collapsed. Campos conspired with others to defraud homeowners who were on the brink of foreclosure, promising them financial assistance to save their homes. What is most disturbing is that primarily Hispanic homeowners were the target of this mortgage fraud scheme. The FBI’s Mortgage Fraud Task Force and the United States Attorney’s Office are committed to combat mortgage fraud and hold those individuals accountable who prey on distressed homeowners.”
Campos, Carrera and Oswaldo operated under the business names Gold Capital Investments, LLC, and Foreclosure Home Savers, LLC, making false guarantees to mostly Spanish-speaking distressed homeowners that their mortgage principal balance and monthly payments would be reduced by 25%, and then failed to pursue any form of loan modification process on behalf of the homeowners.
When homes neared foreclosure, the homeowner was placed in bankruptcy proceedings to delay the foreclosure, but virtually all of the 250 or so victims ultimately lost their homes to foreclosure. Carrera and Oswaldo, both citizens of Mexico, fled from the charges and are believed to be in Mexico. Carrera is believed to be working in real estate under the name Mike Beltran.
The investigation in this case was conducted by the FBI and the prosecution was handled by Monica Klapper, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-01699-PHX-GMS
RELEASE NUMBER: 2013-060_CamposFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Joplin Man Pleads Guilty to Disaster Fraud Related to Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man pleaded guilty in federal court today to fraudulently receiving federal disaster benefits following the May 22, 2011 tornado.
Andy Eric Brownlee, 31, of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a Dec. 13, 2012, federal indictment.
By pleading guilty today, Brownlee admitted that he knowingly made materially fraudulent statements and representations to FEMA in connection with his application for disaster assistance.
Brownlee completed a FEMA application for disaster assistance on May 26, 2011, claiming that his Joplin residence had been damaged by the tornado. Brownlee received a payment of $2,750. However, Brownlee admitted today that the address he used in his FEMA application was actually the address of the Lazarus Ministries Halfway house, which was not his residence at the time of the tornado. Brownlee previously resided there, but moved out prior to the tornado.
Under federal statutes, Brownlee is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by Homeland Security Investigation – Office of Inspector General, the FBI and the Joplin, Mo., Police Department.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.
Jersey City Police Officer Charged with Cigarette Cargo Theft and Scheme to Rob Drug CourierRead the Press Release
NEWARK, N.J. – A Jersey City, N.J., police officer appeared in Newark federal court this afternoon to face charges that he stole more than 600,000 cigarettes from a trailer and conspired to rob $20,000 from a drug courier, U.S. Attorney Paul J. Fishman announced.
Mario Rodriguez, 39, of Jersey City, is charged by complaint with one count of cargo theft and one count of conspiracy to commit Hobbs Act extortion under color of official right. He appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was released on a $250,000 bond and confined to home incarceration with electronic monitoring. The complaint also charges Anthony Roman, 48, also of Jersey City, with the conspiracy. Roman was arrested at home Aug. 2, 2013, and appeared in court the same day. He was released on a $250,000 bond.
According to the complaint: The Cargo Theft
On July 3, 2013, Rodriguez and an individual working for the FBI as a confidential informant (CI) drove to a warehouse in Secaucus, N.J., to break into a trailer and steal cigarettes they planned to sell to the CI’s associate for $5,000. Law enforcement agents had parked the trailer there and established surveillance of the area.
Rodriguez used bolt cutters to cut the lock off of the trailer, and he and the CI loaded 50 cases containing approximately 600,000 cigarettes and six televisions from the trailer into their vehicle. As they drove the stolen items to a parking lot in Staten Island, N.Y., Rodriguez made several phone calls seeking buyers for the TVs.
The pair met the CI’s associate – actually an undercover officer – in the parking lot to get the $5,000 payment for the cigarettes. Rodriguez kept $3,000 of the cash and three of the TVs.
The Extortion
On July 10, 2013, Rodriguez and the CI met in New Jersey with undercover law enforcement agents and discussed the possibility of robbing a drug courier – actually another undercover officer. Later that month, the group met again in Staten Island to discuss the plan. The undercover officers told Rodriguez the courier would be delivering cocaine to them that day in a Jersey City mall parking lot in exchange for a $20,000 payment, after which Rodriguez would steal the money. Rodriguez called Roman to help him with the robbery.
Rodriguez and Roman drove a Toyota RAV-4 truck to the location on July 24, 2013, where law enforcement agents had established surveillance and staged the car containing $20,000 cash in a plastic bag. Rodriguez and Roman robbed the woman they thought was a drug courier of the money after identifying themselves as law enforcement officers – which Roman is not – and pretending to arrest the CI.
Later that day, Rodriguez, the CI and the undercover met in a hotel room at a Pennsylvania casino to split the cash.
The cargo theft and conspiracy to commit Hobbs Act Extortion charges carry a maximum potential penalty of 10 and 20 years in prison, respectively. Both counts also carry a maximum fine of $250,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Special Investigations Unit of the Jersey City Police Department, under the direction of Acting Chief Joseph Connors; the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano T. Gregory; and criminal investigators of the U.S. Attorney’s Office with the investigation leading to the charges. He also thanked the Bayonne Police Department, Waterfront Commission of New York Harbor, IRS-Criminal Investigation, U.S. Department of Labor Office of Inspector General, and the N.J. State Commission of Investigation for their significant contributions to the investigation.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow of the U.S. Attorney’s Office Organized Crime/Gangs Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
13-321
Defense counsel: Mario Rodriguez: Brian J. Neary Esq., Hackensack, N.J.
Anthony Roman: Daniel Welsh Esq., Jersey City, N.J.Rodriguez, Mario et al. Complaint
Hundreds of children are being trafficked for sex in portlandRead the Press Release
U.S. Attorney's Office commissioned study, conducted by Portland State University, documents wide spread victimization of children in the Portland metro areaPORTLAND, Ore. – Today, U.S. Attorney Amanda Marshall and Portland State University released the findings of a research study documenting that at least 469 children were the victims of sex trafficking in the last four years.
The Portland State University (PSU) study was sought by the United States Attorney’s Office and conducted in partnership with the Department of Human Services Child Welfare (DHS) and the Sexual Assault Resource Center (SARC), in order to quantify the scope of child sex trafficking in the Portland area and provide data to guide intervention and services for these children.
“The results of the PSU study are truly shocking,” said U.S. Attorney Amanda Marshall. “The data confirms that we have a devastating epidemic of child sex trafficking within our community – an epidemic that demands action.”
To see a copy of the report, click here.
To see local news coverage, click KGW, KATU, KOIN, Oregonlive
Christopher Carey, PhD, JD of Portland State University and Lena Teplitsky, Portland State MPH Candidate collected quantitative and qualitative data on documented Commercial Sexual Exploitation of Children (CSEC) cases in the Portland Metro Area between December 2012 and June 2013.
What we found:- At least 469 children were trafficked for sex in the Portland Metro Area in the last four years. This number represents CSEC victims served by DHS & SARC.
- The average age at which victims were referred to DHS or SARC was 15.5. The youngest victim in the system was 8. (See footnote 1)
- 96% of victims are female, close to 3% are male, and approximately 1% are transgender.
- 40.51% of victims are Caucasian, 27.08% are African American, and 5.12% are Hispanic. (See footnote 2)
- 16.62% have had a baby.
- 50.85% of active CSEC cases served by SARC have a gang connection.
Given the covert nature of CSEC, cases are widely underreported. As a result, the findings in this report are very conservative. Collecting standardized data for victims is also difficult due to the highly-sensitive nature of the information, as well as the perceived danger that may result from disclosure. The data utilized for this study came exclusively from DHS and SARC, as law enforcement data has not been standardized to date.
“By quantifying the problem we are giving policy makers, social service providers, and other stakeholders the data they need to respond to the needs of these children,” noted U.S. Attorney Marshall. “My office works hand-in-hand with the FBI’s Child Sexual Exploitation Task Force, and other state and local partners, to aggressively prosecute sex trafficking cases. We currently have twelve open cases against pimps and we recently indicted a john on federal charges. Still, for every indictment, there are dozens of cases we cannot bring because the child who was trafficked is back on the street – and to solve that problem we need to find and provide safe and secure placements for these kids.”
1 These age figures reflect age at first referral to a support agency, not age at which exploitation began to occur.
2 African Americans make up 5.8% of Multnomah County’s population (2% of the state population).
Hogsett Announces Update in Federal Prosecution of Bartholomew County ManRead the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Samuel E. Sallee, age 55, a resident of Bartholomew County, has been brought into federal custody after being charged with illegally possessing a firearm. Sallee’s criminal history includes a number of prior felonies, including a 2005 charge of intimidation in Jennings County, a 1989 charge of driving while intoxicated in Bartholomew County, and additional charges related to the use of controlled substances.
“With the launch of our Violent Crime Initiative, this office pledged to fully support our local law enforcement partners in their public safety efforts,” Hogsett said. “We continue to work closely with Bartholomew County law enforcement in this matter, and we are committed to ensuring this defendant is held to account for any crimes he has committed.”
An indictment returned on May 14, 2013, alleges that law enforcement found Sallee to have possessed a Ruger, Model 10/22 .22 caliber rifle, serial number 157425. Due to his prior felony convictions, Sallee is not legally permitted to possess a firearm.
Court documents unsealed today provide additional details as to the investigation and arrest of Sallee. According to the criminal complaint, four victims (three male, one female) were found deceased at a Bartholomew County residence on May 11, 2013. Investigators allege that Sallee had been present at the residence earlier in the day, where he was allegedly attempting to trade one of the victims a .22 caliber rifle for some quantity of methamphetamine.
A search warrant was executed at Sallee’s residence on May 14, 2013. During the search of a detached garage, law enforcement allegedly located the Ruger .22 caliber rifle, as well as additional evidence, including several pieces of jewelry that have been identified as having belonged to the female victim.
The defendant had previously been held in the Brown County jail on unrelated state charges, but had a “hold” placed on him as a result of the federal indictment. Upon his scheduled release this morning, Sallee was taken into federal custody by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives, and transported to Indianapolis for an initial appearance.
This prosecution comes as part of the U.S. Attorney’s Violent Crime Initiative, and is the result of a collaborative investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bartholomew County Sheriff’s Office, the Bartholomew County Prosecutor’s Office, as well as the U.S. Marshals Service.
Announced in March of 2011, the Violent Crime Initiative represents a district-wide strategy to work with local law enforcement and county prosecutors to combat drug traffickers and criminals that use and carry firearms in their illegal activities. The VCI has produced a dramatic increase in the number of gun-related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney’s Office. In the nearly two years since, more than 200 defendants have been charged.
According to Assistant U.S. Attorney Matthew P. Brookman, who is prosecuting the case for the government, Sallee faces up to ten years in federal prison if he is convicted. A criminal complaint or an indictment are only charges and are not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Former Hedge Fund Principal Sentenced in Manhattan Federal Court to Two Years in Prison for Stealing over $2 Million in Investor FundsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that BERTON HOCHFELD, the former Manager of Hochfeld Capital Management, L.L.C. (“Hochfeld Capital”), was sentenced today in Manhattan federal court to two years in prison in connection with an investment scheme in which he stole more than $2 million from investors. HOCHFELD pled guilty in January 2013 to one count of securities fraud and one count of wire fraud before U.S. District Judge Paul A. Crotty, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Berton Hochfeld scammed investors who trusted him out of more than $2 million and spent it in part on luxury items for himself. This Office will not tolerate those who seek to bilk their investors.”
According to the charging instruments in this case and statements made in open court and at the plea proceeding:
HOCHFELD was the Manager and organizer of Hochfeld Capital, a limited liability company incorporated in Delaware that, at various times, maintained an office in New York, New York. Hochfeld Capital, in turn, served as the General Partner of the Heppelwhite Fund, L.P. (the “Heppelwhite Fund”), a hedge fund that was formed to invest in publicly traded securities, mainly in the technology sector. In connection with the management of the Heppelwhite Fund, HOCHFELD made false representations to investors regarding their investments, and misappropriated their money.
For example, by December 2010, HOCHFELD was aware that Hochfeld Capital’s internal accounting for the Heppelwhite Fund reflected an inflated net asset value (“NAV”), as compared to the value reflected in the books of the prime broker where the fund’s assets were actually located. Despite his knowledge of the disparity, HOCHFELD caused monthly statements to be sent to Heppelwhite Fund investors that reflected the inflated NAV calculated by internal accounting records.
From April 2011 through October 2012, HOCHFELD also withdrew money from the Heppelwhite Fund for his own personal use, ultimately misappropriating more than $2 million. During this period, at HOCHFELD’s direction, monthly account statements were provided to Heppelwhite Fund investors that falsely represented the fund’s value by failing to account for the money that he had withdrawn. At a meeting in October 2012, HOCHFELD admitted to certain investors that he had taken more than $1 million from the Heppelwhite Fund, and that he spent portions of that money on antiques and vacations.
In addition to his prison term, HOCHFELD, 66, of Stamford, Connecticut, was sentenced to three years of supervised release. He was also ordered to forfeit $2,110,535.84.
Mr. Bharara praised the investigative work of the FBI. He also thanked the U.S. Securities and Exchange Commission for their assistance.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jillian Berman is in charge of the prosecution.
Former Federal Fugitive Sentenced in California<br /> for Nationwide Foreclosure ScamRead the Press Release
Glen Alan Ward, 48, a former Los Angeles resident who fled to Canada and was a federal fugitive for 12 years, was sentenced today to serve 132 months in prison for aggravated identity theft and bankruptcy fraud in connection with his leading role in a nearly 15-year foreclosure-rescue scam that fraudulently postponed foreclosure sales for more than 800 distressed homeowners.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California, U.S. Attorney for the Northern District of California Melinda Haag, Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office and Special Inspector General for the Troubled Asset Relief Program Christy Romero made the announcement.
Ward was sentenced by U.S. District Judge Dale S. Fischer in the Central District of California. In addition to his prison term, Ward was sentenced to serve three years of supervised release and ordered to pay approximately $60,000 in restitution.
Ward pleaded guilty on April 8, 2013, in connection with three separate sets of charges in the Central and Northern Districts of California, all stemming from Ward’s 15-year fraud. In 2000, Ward became a federal fugitive when he failed to appear in court after signing a plea agreement, which arose out of federal charges in 2000 in the Central District of California related to Ward’s early conduct in the scheme. In 2002, Ward was indicted on multiple counts of bankruptcy fraud in the Northern District of California for continuing the scheme in and around San Francisco. On Aug. 17, 2012, Ward was indicted on mail fraud, aggravated identity theft, and additional bankruptcy fraud counts in the Central District of California after fleeing to Canada and continuing his fraud from there. While in Canada, Ward recruited Frederic Alan Gladle, who was indicted in the Central District of California for bankruptcy fraud and identity theft in 2011, and was sentenced in 2012 on his guilty plea to 61 months in custody for engaging in similar conduct.
On April 5, 2012, Ward was arrested in Canada by the Royal Canadian Mounted Police and the Waterloo Regional Police Service based on a U.S. provisional arrest warrant. On Dec. 21, 2012, Ward was extradited to the United States to answer all three sets of charges.
According to the plea agreement, Ward led a scheme that solicited and recruited homeowners whose properties were in danger of imminent foreclosure. Ward promised to delay their foreclosures for as long as the homeowners could afford his $700 monthly fee. Once a homeowner paid the fee, Ward accessed a public bankruptcy database and retrieved the name of an individual debtor who recently filed bankruptcy. Ward admitted that he obtained copies of unsuspecting debtors’ bankruptcy petitions and directed his clients to execute, notarize and record a grant deed transferring generally a 1/100th fractional interest in their distressed home into the name of the debtor that Ward provided. Then, after stealing the debtor’s identity, Ward faxed a copy of the bankruptcy petition, the notarized grant deed and a cover letter to the homeowner’s lender or the lender’s representative, directing it to stop the impending foreclosure sale due to the bankruptcy.
Because bankruptcy filings give rise to automatic stays that protect debtors’ properties, the receipt of the bankruptcy petitions and deeds in the debtors’ names forced lenders to cancel foreclosure sales. The lenders, which included banks that received government funds under the Troubled Asset Relief Program (TARP), could not move forward to collect money that was owed to them until getting permission from the bankruptcy courts, thereby repeatedly delaying the lenders’ recovery of their money for months and even years. In addition, if a distressed homeowner wanted to complete a loan modification or short sale, they were left to the mercy of Ward to send them forged deeds, supposedly signed by the debtors, to re-unify their title as required by most lenders.
As part of the scheme, Ward delayed the foreclosure sales of approximately 824 distressed properties by using at least 414 bankruptcies filed in 26 judicial districts across the country. During that same period, Ward admitted to collecting from his clients who paid for his illegal foreclosure-delay services more than $1.2 million.
The investigation was conducted by the Office of the Special Inspector General for the Troubled Asset Relief Program and the FBI, which received substantial assistance from the U.S. Trustee’s Office. In addition, the Office of International Affairs of the Department of Justice, Canadian Waterloo Regional Police Service and Royal Canadian Mounted Police provided exceptional support and assistance in connection with Ward’s arrest and extradition.
This case was prosecuted by Assistant U.S. Attorney Evan Davis of the U.S. Attorney’s Office for the Central District of California with assistance from the Criminal Division’s Fraud Section. Assistant U.S. Attorney Jonathan Schmidt is prosecuting the charges in the Northern District of California, which were transferred to the Central District of California for entry of the guilty pleas.
This prosecution is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Former Detroit Public Schools Accountant, Teacher Found Guilty of Fraud and Money Laundering ChargesRead the Press Release
Sandra Campbell, 57 a former Detroit Public Schools contract accountant and School Board candidate, and her daughter, Domonique Campbell, 38, a Detroit Public Schools teacher, were convicted today by a federal jury in Detroit on charges of program fraud conspiracy, money laundering conspiracy and tax charges, following a five-week jury trial, United States Attorney Barbara L. McQuade announced today. The jury returned its verdict after only one and one half hours of deliberations.
McQuade was joined in the announcement by Special Agent in Charge Robert D. Foley, III and Special Agent in Charge, Erick Martinez, Internal Revenue Service, Criminal Investigation.
The evidence presented at trial established that between 2004 and 2008, Sandra Campbell and Domonique Campbell, obtained in excess of $530,000.00 from the Detroit Public Schools through a fraudulent scheme in which orders were placed with the Campbells’ sham company for books and educational materials never provided to the schools. Sandra Campbell and Domonique Campbell conspired to launder the fraud proceeds and to defraud the Internal Revenue Service and failed to report the money they fraudulently obtained from the Detroit Public Schools as income on their tax returns.
United States Attorney Barbara L. McQuade said, "Anyone who considers defrauding our schools should take note that we are scrutinizing records and conduct, and will prosecute those who steal funds intended to educate our children."
FBI Special Agent in Charge Robert D. Foley stated, "The FBI would like to thank all of our partners who continue to assist us in battling corruption. In particular, I would like to note the continued support of DPS Inspector General Van Marsh and his team. The actions of these subjects do nothing more than steal the opportunity for quality education from our children. Such actions cannot be tolerated and will be pursued by the FBI and its partners.”
IRS Special Agent in Charge Erick Martinez stated, “"Those who profit at the expense of our children and steal from our community will be held accountable for their greedy actions".The case was investigated by special agents of the FBI, IRS and Department of Education, Office of Inspector General, with the assistance of Detroit Public Schools, Office of Inspector General. The case was investigated and prosecuted by Assistant United States Attorneys J. Michael Buckley and Bruce Judge of the Public Corruption Unit.
Former Bellevue Developer Indicted for Tax Evasion and Social Security FraudRead the Press Release
A former Bellevue based developer and lender who spent millions on gambling, thoroughbred horse racing, private aircraft, country club fees and a Bellevue penthouse, has been indicted for tax evasion and social security number fraud. THOMAS R. HAZELRIGG, III, 67, of Rancho Mirage, California, will appear in U.S. District Court in Seattle today at 1:30 following his indictment for two counts of evading and defeating payment of tax, and two counts of Social Security number misuse.
The detailed indictment, returned by the grand jury last week, describes how HAZELRIGG first agreed to pay $533,454 in taxes owed for tax years 1989, 1990 and 1991 and then failed to pay the tax debt while living a lavish lifestyle that included private jets, multi-million dollar remodels, expensive artwork and high roller casino junkets. The Indictment also alleges that HAZELRIGG evaded payment of his taxes owed for 1994, for which he had filed a return showing tax owed, but for which he made no payments. The indictment alleges that between 1997 and 2007, HAZELRIGG illegally funneled income from his businesses into accounts that he controlled but that which he kept secret from the IRS and other creditors. HAZELRIGG used these accounts to pay for the multimillion dollar purchase and remodel of a Bellevue penthouse, two Chihuly glass chandeliers worth more than $460,000, more than one million dollars in chips at various casinos, country club memberships for himself and associates, the leasing of private jets, the use of a butler, and more than $160,000 on race horses.
The two counts of Social Security number misuse relate to HAZLERIGG opening bank accounts in 2009, using the Social Security number of his deceased father. HAZELRIGG allegedly used the number to hide the resources from the IRS.
The tax evasion counts are punishable by up to five years in prison. The misuse of Social Security number counts are also punishable by up to five years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI).
The case is being prosecuted by Assistant United States Attorneys Susan Loitz and Robert Westinghouse.
Foreign National Sentenced for Role in Drug Trafficking OrganizationRead the Press Release
Juan Miguel Mendez-Velasquez, 36, a citizen of Mexico who most recently resided in Mexico, was sentenced on August 2, 2013, following his conviction for Conspiracy to Distribute and Possess With the Intent to Distribute Cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Mendez-Velasquez had been charged on August 22, 2012, in an eleven count indictment charging a total of ten individuals with being members of a large drug trafficking organization. Mendez-Velasquez was sentenced to 57 months in prison, followed by two years of supervised release. Mendez-Velasquez was also ordered to pay a $100 special assessment and to forfeit $114,800.00 to the United States. The Court entered a Judicial Order of Removal, which requires him to be deported following the service of his sentence.
According to the Stipulation of Facts which was filed with the Court at the time of the plea, the organization charged in the Indictment was responsible for importing cocaine from Mexico into the United States, where it was taken to Salt Lake City, Utah. From Salt Lake City, the cocaine was transported by members of the conspiracy to the St. Louis Metropolitan area where it was distributed by various members of the organization, including some who operated within the Southern District of Illinois. Proceeds for the sales of the cocaine were then transported back to the leaders of the conspiracy in Salt Lake City.
Of the nine individuals named in the indictment with Mendez-Velasquez, six others have entered pleas of guilty, one has been arrested and is awaiting trial, and two are fugitives. Those not yet convicted are presumed innocent because an indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
Evidence in support of the indictment in this case was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), U.S. Marshal Service, the Granite City Police Department, Fairview Heights Police Department, the Collinsville Police Department, the St. Louis Metropolitan Police Department, the St. Louis County (Missouri) Police Department, the St. Charles County (Missouri) Sheriff=s Department, and the Nebraska State Patrol. This case is assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Fayette Co. Fugitive Pedophile Who Previously Failed to Appear for Sentencing on Child Pornography Charge Gets 10 Years in Federal PrisonRead the Press Release
BLUEFIELD, W.Va. – A Fayette County fugitive pedophile who failed to appear for a May 2012 sentencing hearing on a child pornography charge was sentenced today to the statutory maximum of 10 years in federal prison, announced U.S. Attorney Booth Goodwin. Brett David Bowyer, 34, of Scarbro, W.Va., previously pleaded guilty to possession of child pornography in October 2011. Bowyer’s sentencing was handed down today by Senior United States District Judge David A. Faber in Bluefield.
On September 17, 2010, Bowyer possessed on his computer more than 600 pictures and videos of children having sex or performing sexual acts. Bowyer received and shared child pornography using a peer-to-peer file sharing program called LimeWire, which allows Internet users to download files from other people’s computers around the world.
U.S. Attorney Goodwin said, “Cases involving the exploitation of innocent children are so critical. My office will continue to work diligently to make sure that pedophiles like Mr. Bowyer are locked up where they belong.”
Bowyer was originally scheduled to be sentenced on May 30, 2012 in Bluefield, but failed to appear as required by the conditions of his release. 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 was indicted on June 18 by a federal grand jury sitting in Huntington for failing to appear for his May 2012 sentencing hearing. He faces up to an additional five years in prison and a $250,000 fine if convicted.
The United States Marshals Service conducted the investigation. Assistant United States Attorney Lisa Johnston handled the prosecution.
This case was 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.
Drug Dealing Brothers Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge George L. Russell III sentenced brothers Harold Alexander Byrd, age 26, of Phoenix, Maryland, and Joseph Ibreham Byrd, age 34, of Owings Mills, Maryland, today each to 10 years in prison, followed by five years of supervised release, for possession with intent to distribute cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Chief James W. Johnson of the Baltimore County Police Department; and Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police.
According to the Byrds= plea agreements, search warrants executed on April 22, 2013, recovered over five kilograms of cocaine from each brother’s home, with a street value of approximately $150,000. Law enforcement recovered three handguns, one AK-47 (semi-automatic), and four sets of body armor from Harold Byrd’s residence. The brothers admitted they were co-conspirators and Joseph Byrd frequented his brother’s home and was aware that the firearms were stored there. Seventy-three black plastic containers used to conceal large quantities of marijuana during shipment from Arizona to Maryland were also recovered from Harold’s home. Both brothers also had fictitious drivers’ licenses in various names but bearing their photographs. On the same day, approximately 500 pounds of marijuana was seized from a third location in Baltimore, where both brothers were also arrested.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore County Police Department and the Maryland Transportation Authority Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys James G. Warwick and Kenneth S. Clark, who prosecuted the case.
District Man Indicted in $3 Million Embezzlement Scheme-Defendant Allegedly Used Money for A House, Trips, Other Expenses-Read the Press Release
WASHINGTON - Howard E. Person, Jr., 35, of Washington, D.C., has been indicted for mail fraud and other federal offenses stemming from a $3 million embezzlement scheme in which he is accused of illegally obtaining and using his employer’s money for the purchase of a house, trips to Las Vegas and other locations, and other personal expenses.
The indictment, which was unsealed today in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr., Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), and Kathy A. Michalko, Special Agent in Charge, Washington Field Office, U.S. Secret Service.
Person was named in the 12-count indictment on July 30, 2013, charging him with mail fraud, access device fraud, interstate transportation of money taken by fraud, monetary transactions, and first-degree theft. The indictment also includes forfeiture allegations seeking all proceeds traceable to the scheme. Person pled not guilty to the charges today.
According to the indictment, Person had been the finance director of a small, locally owned company. The indictment alleges that from March 2008 to September 2011 he arranged to divert money from his employer’s bank account to another bank account which he exclusively controlled in order to embezzle money from the company.
The indictment alleges that Person opened this other, secret, bank account without the knowledge and permission of the owner. He also allegedly used false financial statements to conceal his theft from the owner. According to the indictment, Person caused the company’s clients to pay the secret account instead of the authorized account $6 million in money due and owing to the company. The indictment charges that Person then used about $3 million to keep the company afloat, and the other $3 million to pay his personal expenses, including purchasing his home in the 500 block of Florida Avenue NE, in an amount in excess of $340,000; paying for trips to Las Vegas, Atlantic City, Miami, the Dominican Republic, and Hawaii; transferring money into his personal bank account and into his side-line business account; funding parties and shows, and withdrawing over $55,000 in cash from ATMs and over $35,000 in debit card purchases at casinos in Las Vegas and Atlantic City.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Machen, Chief Lanier, and Special Agent in Charge Michalko expressed appreciation for the work performed by MPD detectives from the criminal investigation division - financial crimes section as well as by the Special Agents and financial analysts from the U.S. Secret Service. They also acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Criminal Investigator Juan Juarez, Paralegal Specialist Donna Galindo, Assistant U.S. Attorneys Christopher Kavanaugh and Anthony Saler, former Assistant U.S. Attorney Mary Chris Dobbie, and Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.
13-277Defendant Sentenced for Possession of Firearm Following Felony ConvictionsRead the Press Release
United States Attorney Kenyen Brown announces, Charles Derks of Mobile, has been sentenced to 30 months in prison for his conviction of being a felon in possession of firearms, a violation of Title 18, United States Code Section 922(g)(1). The term of imprisonment is to be followed by a three year term of supervised release.
Derks was previously convicted of being a felon in possession of a firearm in 2005, following state felony convictions for third-degree burglary and second-degree theft. By virtue of these convictions, and Derks’s resulting status as a convicted felon, he was and is prohibited from possessing firearms or ammunition.
This case was investigated by the Mobile Police Department. The case was prosecuted by Assistant U.S. Attorney Christopher B. Brinson on behalf of the United States Attorney’s Office for the Southern District of Alabama.
Clay County Sheriff Charged with WiretappingRead the Press Release
Sheriff Miles Slack Secretly Intercepted Communications from Ex-Wife’s Supreme Court Computer, Federal Prosecutors Say
CHARLESTON, W. Va. – U.S. Attorney Booth Goodwin today charged Clay County Sheriff Miles J. “Mike” Slack with illegal wiretapping, a federal felony that can carry up to five years in prison. In a criminal case filed this afternoon, Goodwin charged Sheriff Slack with surreptitiously installing a keystroke logger on a computer belonging to the Supreme Court of Appeals of West Virginia.
According to court documents, the compromised computer was a government computer assigned to Slack’s then wife, identified as “Victim L.S.,” who works in the office of a Clay County magistrate. Computers in the offices of circuit judges and magistrates throughout West Virginia are owned and maintained by the state’s Supreme Court, and are connected to a central Supreme Court computer network.
Sheriff Slack installed the hidden device in late April of this year, said Goodwin and Steven Ruby, the assistant federal prosecutor who signed today’s charge, and it remained in place for over two weeks, intercepting messages and data transmitted from L.S.’s Supreme Court computer.
Keystroke logging devices can be purchased from a number of Internet-based sellers. The devices, usually one to two inches long, are attached to a computer’s keyboard cable. Once installed, they can intercept everything typed on the keyboard, including email and information transmitted to Internet sites.
Because the devices are unobtrusive and normally hidden behind the computer targeted for surveillance, they can go undetected for long periods of time. Though small in size, some keystroke loggers can store two gigabytes of information, enough to record more than a billion keystrokes.
Slack served as a Clay County deputy sheriff for around 16 years. In early 2012, while acting as chief deputy for the Clay County Sheriff’s Department, Slack announced he was running for sheriff. Then-Sheriff Randy Holcomb, however, quickly demoted Slack to the rank of sergeant, a move that threatened Slack’s election bid. Under West Virginia civil service laws, deputy sheriffs other than the chief deputy may not run for public office. In order to remain in the race, Slack resigned from the department and became Chief of Police for Clay, West Virginia, the county seat of Clay County.
In the May 2012 primary election, Slack soundly defeated two other candidates for the Democratic nomination for sheriff, receiving nearly 78% of the vote. He ran unopposed in the November 2012 general election and took office January 1, 2013. Slack’s first projects as sheriff included expanding evening patrols and seeking funding for a new home confinement officer.
Slack was charged in a court filing known as an information, which ordinarily indicates that a defendant is cooperating with prosecutors. No hearing date has been set.
The case is being investigated by the Federal Bureau of Investigation and the West Virginia State Police, with assistance from the Supreme Court of Appeals of West Virginia. The prosecution is being handled by Steven Ruby and Haley Bunn, prosecutors in Goodwin’s office.
Note: The charge contained in an Information is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
Click here to view a copy of the information
Child Pornographer Sentenced to 30 Years in Federal PrisonRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court today, Senior United States District Judge W. Earl Britt sentenced BRUCE WAYNE LORETTE , 34, of Leland to 360 months imprisonment, followed by a lifetime of supervised release.
Mr. Walker stated, “The horror of the abuse in this case is unspeakable. The sentence Judge Britt delivered today sends just the message it should: the sexual abuse of the most vulnerable members of our community will not be tolerated.”
LORETTE was first charged in an 11-count Indictment filed on October 24, 2012 charging him with 10 counts of receiving child pornography and one count of possession. After further evidence was discovered, LORETTE was named in a Criminal Information filed on March 7, 2013 charging him with producing child pornography. On May 13 2013, LORETTE pled guilty to that charge.
According to the investigation, LORETTE was first detected by undercover police who found that he was offering child pornography over a peer-to-peer network. After executing a search warrant at his Leland residence and the commencement of forensic examination of his computer equipment, investigators learned that LORETTE was not merely downloading and offering child pornography for download, but that he was creating child pornography of his own by victimizing an infant.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Investigation of this case was led by the North Carolina State Bureau of Investigation and Federal Bureau of Investigation. Assistant United States Attorney Jay Exum prosecuted the case for the United States.
California Man Pleads Guilty to Federal Heroin Trafficking ChargeRead the Press Release
ALBUQUEQUE – Louie Villegas, 48, of Desert Hot Springs, Calif., pleaded guilty this morning to a federal heroin trafficking charge. Under the terms of his plea agreement, Villegas will be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court.
Villegas was arrested on April 18, 2013, at the Greyhound Bus Station in Albuquerque, N.M., after DEA agents found more than a kilogram of heroin concealed in inside the inner soles of his tennis shoes. He subsequently was indicted and charged with possession of heroin with intent to distribute.
During this morning’s proceedings, Villegas entered a guilty plea to the indictment and admitted that, while at the Greyhound bus station in Albuquerque on April 18, 2013, he had a consensual encounter with DEA agents and gave the agents permission to search him and his shoes for contraband. When Villegas handed his left shoe to the agents, it was abnormally heavy. Inside the inner sole of both shoes, the agents found approximately 1.3 kilograms of heroin.
Villegas has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Interdiction Unit of the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Lynn W.Y. Wang.
Attorney General Eric Holder Recognizes South Dakota Prosecutor for Outstanding Performance in Indian CountryRead the Press Release
Gregg Peterman, Supervisory Assistant U.S. Attorney in the District of South Dakota, has received national recognition for his work in Indian Country. Peterman was one of 154 members of the Department of Justice (DOJ) who were recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director H. Marshall Jarrett.
Peterman was honored with a 2013 Director’s Award for Outstanding Performance in Indian Country, one of the highest awards that can be bestowed upon an Assistant U.S. Attorney.
In a letter to Peterman, Attorney General Holder said the following: “In your 17 years of service to support Indian Country, your passion and energy as a prosecutor have made these communities better and safer places to live. You have accomplished this through handling some of the district’s most difficult cases ranging from violent homicides to child sexual abuse cases; through your involvement with working groups and committees; and by training law enforcement agencies on Indian Country issues. You have demonstrated the best of public service and deserve recognition for your commitment to justice.”Originally from Brooklyn, New York, Peterman joined the U.S. Attorney’s Office for the District of South Dakota in 1995. Shortly after joining the office, he showed an interest in working on Indian Country issues, and quickly displayed a passion and energy focused on these cases. Over the years he has handled some of the District’s toughest Indian Country matters, ranging from violent homicides to heart wrenching child sexual abuse cases. He has been involved in numerous national Indian Country working groups and committees, including The Attorney General’s Task Force on Domestic Violence in Indian Country. Peterman is a frequent lecturer on Indian Country issues at the DOJ training center in South Carolina and has provided law enforcement training to hundreds of Indian Country officers. He has co-authored two Indian Country articles for USA Book.
“Gregg Peterman has dedicated over 17 years of his career fighting to deliver justice for victims in Indian Country,” said Brendan Johnson, U.S. Attorney for the District of South Dakota. “Gregg’s compassion, coupled with his tenacity, knowledge, and familiarity with Indian Country, makes him an ideal choice for the Director’s Award. His talent and expertise are valuable tools as we continue our efforts to improve public safety on reservations, and help make the communities safer places to live, work, play, and raise a family.”
Peterman has served as a pathfinder for the nation by leading the first community prosecution project on the Pine Ridge Reservation that was implemented in 2010. Peterman embraced the challenge to have a stronger presence on the reservation, and he successfully created and strengthened relationships by getting out in the communities, working on cases with law enforcement, talking to victims, and steering investigations. The pilot program has proven to be successful in a number of areas and criminal prosecutions have increased.
“Each day the members of the U.S. Attorneys’ community go to work for the citizens of this country with one goal in mind – to do everything they can to protect the rights of all Americans,” said EOUSA Director Jarrett. “I am continually humbled by their resiliency, dedication, and unparalleled work ethic to accomplish this noble mission. Today’s awardees exemplify what it truly means to be a patriot and it is an honor to recognize them for their extraordinary service.”
Peterman was named the Supervisor of the U.S. Attorney’s Rapid City office in early 2012. U.S. Attorney Johnson honored Peterman with the Director’s Award on August 5, 2013.Annette Kendrick - Arraigned on Computer Intrusion ChargeRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today ANNETTE KENDRICK, 40, of Marietta, Georgia was arraigned before Magistrate Judge Marian W. Payson, pursuant to her being charged in a Criminal Complaint with intentionally causing damage to a protected computer domain in violation of Title 18, United States code, Section 1030(a)(5)(A). The charges carry a maximum penalty of 10 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Bradley E. Tyler stated that in April 2013, employees of Iberdrola, a company headquartered in Rochester, New York, reported that Iberdrola was the victim of a computer intrusion. In response to that report, law enforcement agents determined that on or about April 4, 2013, the defendant Kendrick, using the log in credentials of another individual, logged into Iberdrola’s computerized job application system, modified a job posting, modified questions on the posting, sent e-mails to agencies about the posting, and sent e-mails to job applicants saying they were no longer being considered for the position.
Magistrate Judge Payson set the next court appearance for the defendant Kendrick on September 12, 2013.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Anchorage Drug Dealers conviceted by Jury of drug conspiracy and weapons chargesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two Anchorage men were convicted of federal drug and weapons charges last week.
Christopher Thomas Mejia, 24, and Jared Thomas Bowers, 23, both of Anchorage, Alaska, were tried before Chief U.S. District Court Judge Ralph R. Beistline in Anchorage, Alaska.
A federal jury of seven men and five women found Mejia and Bowers guilty of a drug trafficking conspiracy, attempted possession of heroin with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime.
According to Special Assistant U.S. Attorney Erin Bradley, who prosecuted the case, the evidence presented at trial established that Mejia and Bowers conspired to distribute approximately 97 grams of heroin. They supplied their co-defendant, Rhadames Marmolejos, Jr., with heroin on eight separate occasions, which Marmolejos then sold to an undercover agent working for the Drug Enforcement Administration. In February 2013, the United States Postal Service intercepted a package containing approximately two pounds of heroin. The investigation revealed that Mejia intended to purchase one pound of that heroin for approximately $30,000. Law enforcement arrested Mejia and Bowers as the two waited in a vehicle to purchase the heroin. The two were in possession of approximately $27,000 in United States currency and a loaded .45 caliber semi-automatic pistol. Mejia and Bowers are in custody pending sentencing.
Judge Beistline scheduled sentencing for Mejia on October 15, 2013, at 9:00 a.m. Bowers is scheduled to be sentenced on October 16, 2013, at 10:00 a.m. Marmolejos, who pled guilty to drug trafficking conspiracy in a separate proceeding, is scheduled to be sentenced on October 3, 2013, at 10:00 a.m. Based on the charges of conviction, Mejia and Bowers face mandatory minimum sentences of ten years in prison, a fine of five million dollars, or both. Marmolejos faces a mandatory minimum sentence of five years in prison, a fine of five million dollars, or both.
Ms. Loeffler commends the Drug Enforcement Administration, the Alaska State Troopers and the United States Postal Service for the investigation leading to the successful prosecution of Mejia, Bowers and Marmolejos. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office who is funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.
3 August 2013
Former Illinois Department of Public Health Chief of Staff Charged with Bribery and Taking Kickbacks, Mail Fraud, Obstruction of JusticeRead the Press Release
To Date: 13 Defendants Charged in Ongoing State Grant / Contract Fraud Investigation
SPRINGFIELD, Ill. – An indictment returned yesterday by a grand jury in Springfield charges Quinshaunta R. Golden, former Chief of Staff for the Illinois Department of Public Health, with bribery and taking kickbacks of approximately $433,000 in grant and contract funds, mail fraud, and obstructing justice in a federal investigation. The indictment alleges that from about July 2007 to October 2008, Golden received kickbacks related to $13 million in grant and contract funds awarded at Golden’s direction to various entities. Further, the indictment alleges that from about February to early April 2012, Golden engaged in conduct to obstruct and impede a grand jury investigation in the Central District of Illinois.
The U.S. Attorney for the Central District of Illinois, Jim Lewis, announced the indictment today, along with Assistant U.S. Attorney Timothy A. Bass, who is representing the government in the prosecution, and representatives of the investigative agencies that participate in the U.S. Attorney’s Public Corruption Task Force: Tony Gomez, Postal Inspector in Charge, U.S. Postal Inspection Service, Chicago Division; James Lee, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, Chicago Field Office; and Jim Burns, Inspector General, Illinois Secretary of State Office of Inspector General.
Golden is the 13th defendant to be charged, to date, as a result of the ongoing task force investigation of state grant/contract fraud. Charges filed against these 13 defendants collectively allege the misuse of more than $16 million in taxpayers’ money intended to provide a wide range of healthcare, student assistance, and job training programs and services to disadvantaged citizens. These include programs to promote wellness and improve healthcare; to prepare for major health and natural disaster emergencies; to provide healthcare advocacy programs and student job training assistance; to provide skill training and apprenticeships; and to provide statewide HIV prevention plans and HIV/AIDS facilities to assist African Americans. See the attached summary table for the complete list of defendants charged and case status.
According to the indictment, Golden, 44, of Homewood, Ill., served as Chief of Staff at the Ill. Department of Public Health from 2003 to early 2008. In that capacity, Golden had significant control over the agency’s offices and had certain approval authority and control over the awarding of grants and contracts. In 2008, Golden left the Department of Public Health and took a position at the University of Chicago Medical Center.
The indictment alleges that, as part of the scheme, Golden used her position at the Department of Public Health to cause the agency to issue approximately $11 million in grant funds, for programs relating to breast, cervical and prostate cancer, HIV/AIDS, and emergency preparedness, to three not-for-profit organizations: Broadcast Ministers Alliance, Access Wellness and Racial Equity, and the Medical Health Association. These organizations were then controlled by Leon Dingle, Jr., and his for-profit corporation known as Advance Health, Social and Educational Associates, Inc. Dingle, his wife, and two associates were indicted in October 2012; trial is scheduled for December 2013. Further, Golden allegedly caused approximately $2 million in contract funds to be paid by the Department of Public Health to an entity referred to in the indictment as Security Firm A for services related to the Identified Offender Program to conduct background checks and interviews of Illinois nursing home residents.
As part of the scheme, Golden allegedly caused a person, identified as Individual A in the indictment, to be hired as a paid consultant for Leon Dingle, Jr., and the three not-for-profit entities, as well as a paid consultant for Security Firm A. As a result, approximately $772,500 in grant funds, originally disbursed to the three not-for-profit entities, was paid to Individual A during a nine-month period from July 2007 to April 2008, including approximately $407,500 paid to Individual A in April 2008, at the end of Golden’s tenure at the Department of Public Health.
The indictment alleges that Golden required, as a condition of Individual A receiving grant funds, that Individual A pay Golden one-half of whatever Individual A received, less any funds to be withheld for payment of taxes, which were never paid. From about July 2007 to April 2008, Individual A made cash payments to Golden in amounts ranging from $5,000 to as much as $70,000, totaling approximately $323,500.
Under the Identified Offender Program, the indictment alleges that Golden required Individual A to pay Golden approximately $35 to $40 for each background investigation performed by Security Firm A. From 2006 to 2009, Individual A received approximately $485,000 in funds from Security Firm A’s contracts with DPH, and during 2007 and 2008, Individual A allegedly paid Golden approximately $109,500.
In addition to the charges of bribery and taking kickbacks and mail fraud (five counts), the indictment charges Golden with one count of obstruction of justice. Golden allegedly met with Individual A on multiple occasions and falsely denied receiving improper kickback payments from A. Further, the indictment alleges that Golden encouraged and instructed Individual A not to tell the truth concerning the kickback scheme and to conceal the truth from Individual A’s attorney, and to create a false story by saying that Individual A used the grant and contract funds for gambling and other personal expenses.
The indictment includes one count of criminal forfeiture seeking forfeiture of property Golden derived from any proceeds obtained as a result of the alleged offenses, as well as a money judgment in an undetermined amount representing the net proceeds obtained as a result of the alleged offenses.
If convicted, for the offense of bribery and theft concerning programs receiving federal funds, the statutory penalty is up to 10 years in prison and a fine of up to $250,000. For each count of mail fraud (five counts) and for the single count of obstruction of justice, the statutory penalty is up to 20 years in prison and fines of up to $250,000 as to each count. The defendant may also be ordered to pay restitution to victims of the alleged offenses.
The U.S. Clerk of the Court will issue a summons to Golden for her initial appearance date, scheduled for Aug. 23, 2013, at 11:00 a.m., before U.S. Magistrate Judge Byron G. Cudmore in federal court in Springfield.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Individuals who wish to provide information to law enforcement regarding matters of public corruption are urged to call the U.S. Attorney’s Office at 217-492-4450.
2 August 2013
Westlake Man Sentenced to More Than 21 Years in Prison for Meth and Gun Possession ChargesRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced Anthony Frederick “Tony” Giaimis, 48, of Westlake, La., was sentenced Thursday by U.S. District Judge Patricia Minaldi, to 262 months in prison and five years of supervised release for conspiring to distribute methamphetamine, 262 months in prison and four years of supervised release for possessing with intent to distribute methamphetamine, and 262 months in prison and six years of supervised release for felony weapon possession. He will serve prison and supervised release terms for all three counts concurrently.
On April 10, 2013, after a three-day trial, a jury found Giaimis guilty of conspiring to distribute 50 grams of methamphetamine, possession of methamphetamine with intent to distribute, and a felon in possession of 14 firearms. According to witness testimony and evidence presented at trial, during the dates of the conspiracy, Giaimis obtained more than 80 ounces of methamphetamine from two men in the Houston area, which he sold to people living in and around Calcasieu Parish. On January 6, 2012, police found 14 firearms during a search of the marina where Giaimis was living, the Bridge Point Yacht club, which is owned by his mother. Giaimis had been previously convicted of a felony in June of 2011 in the 253rd District Court of Texas in Chambers County for possession with intent to deliver more than 200 grams of methamphetamine.
Justin W. Brewer, 42, and Ricky Martinez, 43, both of Houston, Texas, were also charged in the same indictment with Giaimis in August 2012. Brewer was sentenced on July 25, 2013 by Judge Minaldi, to 60 months in prison and five years of supervised release for possession with intent to distribute more than 50 grams of methamphetamine. According to evidence presented at Brewer’s guilty plea, he was arrested on December 28, 2011, after a Westlake police officer found 51.1 grams of pure methamphetamine in the trunk of his car. An informant told authorities that Brewer was in the Westlake area and was transporting a large quantity of methamphetamine. After the officer pulled Brewer over for a traffic violation, the officer found a drug smoking pipe and other drug paraphernalia in the console of the car, and a box containing methamphetamine in the trunk. He pleaded guilty on April 8, 2013.
Martinez is scheduled for a change of plea hearing on August 7, 2013. He is charged with one count of conspiracy to distribute more than 50 grams of methamphetamine and one count of possession of more than 50 grams of methamphetamine with intent to distribute.
“It took the work of police, sheriff’s deputies, and federal agents, along with witnesses to bring the defendants in this drug distribution operation to justice,” Finley stated. “I want to thank all of those who put their time and lives on the line to remove harmful and illegal drugs from our streets.”
The Westlake Police Department, Calcasieu Parish Sheriff’s Office, Lake Charles Police Department, FBI-Safe Streets Task Force, Combined Anti-drug Team (CAT) Task Force, and the DEA Laboratory conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel is prosecuting the case.Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Adam Snyder, 28, of Warsaw, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of possession of child pornography. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation.Sentencing has been set for 11/6/13. This charge was filed as a result of an investigation by United States Secret Service.This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
Kandi Biggins, 43, of Spencerville, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of bank fraud. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 10/31/13.This charge was filed as a result of an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
Thomas C. Touhey, 55, of Walkerton, Indiana, pled guilty before District Judge District Judge Robert L. Miller, Jr. to the felony offense of unlawful transport of firearms. Sentencing has been set for 11/6/2013. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Abigail Marin-Flores, 41, of Ligonier, Indiana, was sentenced by District Judge Jon E. DeGuilio to time served after pleading guilty to the felony offense of unlawful re-entry into the United States after deportation.According to documents filed in this case, on February 25, 2012, Marin-Flores was deported to Mexico at Laredo, Texas, after having been found in the United States without having been properly admitted. The defendant was arrested in Elkhart County, Indiana, in April of 2013 for identity theft and forgery charges after her illegal re-entry. This case was the result of an investigation by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Marquis Broadway, 19, of South Bend, Indiana, was sentenced by District Judge Jon E. DeGuilio to 162 months imprisonment and 3 years of supervised release after pleading guilty to the felony offenses of carjacking and carrying a firearm in furtherance of a crime of violence.According to documents filed in this case, in July 2011 Broadway used a handgun to demand and steal a vehicle.In August 2011 Broadway was stopped and arrested in the stolen vehicle.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the South Bend Police Department.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Pablo Bueno III, 25, of South Bend, Indiana, was sentenced by District Judge Jon E. DeGuilio to 27 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed in this case, Bueno went to Midwest Gun and Range with two other people for the purpose of target shooting. Ammunition was purchased for several firearms. During the target shooting, Bueno handled all firearms that were rented and brought to the range. He signed a document at the desk indicating he was not a convicted felon. However, Bueno had a prior conviction for attempted residential entry and was sentenced to 15 months imprisonment. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney William Grimmer.
Scott Reahard, 46, of Wabash, Indiana, was sentenced by District Judge Robert L. Miller, Jr. to 120 months imprisonment, $5000.00 in restitution and 5 years of supervised release after pleading guilty to the felony offense of possession of child pornography.According to documents filed this case, Reahard possessed a laptop computer and media which contained digital images that depicted child pornography.Reahard admitted to possessing over 600 images, some of which portrayed minors who had not attained the age of 12 years.This case was the result of an investigation by United States Marshal’s Service and the Indiana State Police.This case was prosecuted by Assistant United States Attorney John Maciejczyk.
Robert Pulliam, 52, of New Carlisle, Indiana, was sentenced by District Judge District Judge Robert L. Miller, Jr. to time served and 2 years supervised release after pleading guilty to the felony offense of manufacturing marijuana.According to documents filed in this case, Pulliam had a small grow operation in the home in which he lived alone. He also had 22 firearms of various types and hundreds of rounds of ammunition that he kept in an unlocked gun safe next to the grow room. This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – HammondRead 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 the following activity in Federal Court:
PLEAS:
Tenando Osborne, 39, of Gary, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offense of possession of a firearm by a convicted felon.Sentencing has been set for 10/30/13.This charge was filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Gary Police Department.This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
Antonio DuPree Collins, 37, of Merrillville, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offense of possession of a firearm by a convicted felon.This charge was filed as a result of an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
Brian Washington, 26, of Gary, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offenses of distribution of crack cocaine and possession of a firearm in furtherance of a drug trafficking crime.These charges were filed as a result of an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Gabriel Jalomos, 25, of Chicago, Illinois a defendant in the case US v Vargas et al., was sentenced by Senior District Judge Rudy Lozano to 240 months imprisonment and 5 years of supervised release after pleading guilty to conspiracy to participate in racketeering activity, and in a separate matter, conspiracy to possess with the intent to distribute and distribution of cocaine and marijuana, and the robbery of a 7-Eleven store in Hammond, Indiana.According to the indictment charging racketeering, Jalomos is a member of the Latin Kings, which is a nationwide gang that originated in Chicago and has branched out throughout the United States, including to Texas. The indictment also alleged that the Latin Kings gang was responsible for at least 19 murders in the Chicago/Northwest Indiana area and Big Spring, Texas. These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Drug Enforcement Administration; Federal Bureau of Investigation; the U.S. Immigration and Custom Office of Homeland Security Investigations; the National Gang Targeting, Enforcement & Coordination Center; the National Gang Intelligence Center; the Chicago Police Department; the East Chicago Police Department; the Griffith Police Department; the Hammond Police Department; the Highland Police Department; and the Houston Police Department.The investigation of the Chicago Police Department officers was conducted by Chicago City Public Corruption Task Force, a Chicago Police Department- Internal Affairs and FBI - Chicago law enforcement initiative.This case is being prosecuted by Assistant United States Attorney David J. Nozick, and Joseph A. Cooley, Trial Attorney, United States Department of Justice - Organized Crime and Gang Section.
Bradley Jefferson, 24, of East Chicago, Indiana, was sentenced by Magistrate Judge Paul Cherry to 6 months of probation after pleading guilty to the felony offense of possession of a weapon within a National Park.This case was the result of an investigation by the National Park Service-Indiana Dunes.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Cortez Humphrey, 38, of University Park, Illinois, was sentenced by Senior District Judge Rudy Lozano to 168 months imprisonment and 5 years of supervised release after pleading guilty to the felony offense of conspiracy to possess with the intent to distribute heroin.According to documents filed by the government in this case, Humphrey was charged along with eight others with participation in a heroin ring.Humphrey admitted to being a mid-level supplier of heroin and to regularly fronting heroin to co-conspirators, who paid him after selling the heroin to others in and around the Newton County area.This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorneys Jennifer Chang-Adiga and Jacqueline Jacobs.
Willie G. Flowers, 32, of Gary, Indiana, was sentenced by Senior District Judge James Moody to 46 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed by the government in this case, East Chicago Police Department Officers saw Flowers, who was walking towards them, place an item near a garbage dumpster. That item was recovered and found to be a .38 caliber revolver loaded with six (6) rounds of ammunition.Flowers has prior felony convictions for possession of cocaine and battery on a police officer.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Chicago Police Department.This case was prosecuted by Assistant United States Attorney Joshua Kolar.
Shawn Pitts, 42, of McKinney, Texas, a former East Chicago Police Officer from 1997 to 2011, was sentenced by Senior District Judge Rudy Lozano to 8 months of home detention and 2 years of supervised release after pleading guilty to the felony offense of mail fraud.Pitts was caught “double-dipping”.Pitts would claim to be working two jobs at the same time on many days. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Gary Bell.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Gerardo Martinez-Gaston, 42, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger B. Cosbey to the felony offense of conspiracy to distribute and possess with the intent to distribute cocaine. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This investigation was conducted by the FBI Fort Wayne Safe Streets Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Fort Wayne Safe Streets Task Force is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department, and Fort Wayne Police Department. The New Haven Police Department, Steuben County Sheriff's Department, Elkhart County Interdiction and Covert Enforcement Unit, South Bend Police Department, and IMAGE Drug Task Force assisted with this investigation. This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
Joseph R Topp, 20, of Angola, Indiana, pled guilty before Magistrate Judge Roger B. Cosbey to the felony offense of distribution of child pornography. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation Cyber Crime Task Force.This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Brenna Underwood, 27, of Fort Wayne, Indiana was sentenced by District Judge Theresa L. Springmann to 1 year of probation after pleading guilty to the felony offense of maintaining a drug involved premises.According to documents filed in this case, Underwood managed a building in Fort Wayne for the use and manufacture of crack cocaine. This case was the result of an investigation by the Federal Bureau of Investigation and the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Anthony Geller.
James Rogers, 29, of Fort Wayne, Indiana, was sentenced by District Judge Theresa Springmann to 46 months of imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon. According to documents filed in this case, Rogers was convicted in 2003 for distribution of crack cocaine. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Lovita Morris-King.
Ku-La Lwin, 19, of Fort Wayne, Indiana, was sentenced by District Judge Theresa Springmann to 24 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of receipt and possession of a non-registered short barreled shotgun. According to documents filed in this case, Lwin was in possession of a New England 12 gauge sawed off shotgun with both the barrel and stock illegally modified.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Tina Nommay.
Leonard Riley, 21, of Fort Wayne, Indiana, was sentenced by District Judge Theresa Springmann to 21 months of imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed in this case, Riley was arrested while in possession of a handgun and had been previously convicted of auto theft.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Lovita Morris-King.
Waubay Man Found Guilty of Murdering DaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that Mario Contreras, age 35, of Waubay, South Dakota, was convicted of Second Degree Murder and Assault Resulting in Serious Bodily Injury as a result of a federal jury trial held in Sioux Falls, South Dakota.
The charges carry a maximum penalty of life imprisonment, a $250,000 fine, or both; 5 years of supervised release; and a $100 special assessment. The murder charge carries a mandatory minimum sentence of 30 years in prison. Contreras was indicted by a federal grand jury for the charges on August 14, 2012.
The victim was born on December 31, 2009, and was murdered by her father on January 9, 2012, just after she turned 2 years old. The victim’s mother and father were never married and were no longer close. The defendant was not very involved in the victims’ first year and a half of her life. On January 4, 2012, the victim’s mother asked Contreras if he could watch her for a few days. Contreras had custody of the victim from January 4th through January 9th, the date of death.
Contreras told investigators that on January 9th his daughter was having a cup of water and a banana and he left the room. He said that is when she fell off the chair and sustained the injuries that cased her death.
The Assistant Medical Examiner of Ramsey County, Minnesota, who performed the autopsy, discovered 18 round bluish-colored contusions on four sides of the victim’s head, indicative of blunt force trauma. He concluded that the multiple contusions and resulting subdural hematoma could not have been caused by a single fall from a chair and that the cause of death was a homicide. Another government expert on child abuse also concluded that the injuries were inconsistent with falling from a chair or table. An additional expert for the government determined that there were small hemorrhages to the retinas and concluded that the child was beaten. Two government experts testified that the chances of such a short fall causing death were “one in a million.”
The trial commenced on Tuesday morning, July 30, and concluded Thursday evening, August 1. After approximately two and a half hours of deliberation, the jury returned a verdict of guilty of Second Degree Murder and guilty of Assault Resulting in Serious Bodily Injury.
This case was investigated by the Federal Bureau of Investigation, the Sisseton-Wahpeton Tribal Law Enforcement Services, and the Bureau of Indian Affairs. The case was prosecuted by Assistant U.S. Attorneys Thomas J. Wright and Jay P. Miller. A presentence investigation was ordered and a sentencing date is set for November 2013.
The defendant was remanded to the custody of the U.S. Marshals Service.
Waterloo Man Sentenced to over 21 Years for Distributing and Possessing Child PornographyRead the Press Release
A man who distributed and possessed child pornography was sentenced July 31, 2013, to over twenty-one years in federal prison.
Charles Adkins, age 46, of Waterloo, Iowa, received the sentence after a March 4, 2013, guilty plea to one count of distribution of child pornography and one count of possession of child pornography. At the guilty plea, Adkins admitted that he used the Internet to distribute child pornography and that he possessed child pornography on a laptop computer.Adkins was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Adkins was sentenced to 262 months’ imprisonment and fined $10,000. A special assessment of $200 was imposed, and Adkins must also serve a ten-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Black Hawk County Sheriff’s Office, the Waterloo Police Department, the U.S. Postal Inspection Service, Homeland Security Investigations, and the Pensacola, Florida, Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-2034.
Walthill Man Sentenced for AssaultRead the Press Release
United States Attorney Deborah R. Gilg announced that Mark Phillips, age 60 of Walthill, Nebraska, was sentenced in the United States District Court in Omaha for Assault with a Dangerous Weapon. The Honorable Lyle E. Strom, Senior Judge, sentenced Phillips to 33 months of imprisonment. There is no parole in the federal system. After his release from prison Phillips will begin a 3 year term of supervised release.
On September 21, 2012, Phillips stabbed his adult son in the chest with a kitchen knife. The stabbing occurred within the family home in Walthill. The victim was treated for a 3 centimeter wound and released. Federal jurisdiction was based upon Phillips status as a Native American and the scene of the crime being within the Omaha Indian Reservation.
United States Attorney Deborah R. Gilg expressed her appreciation to the Omaha Tribal Police Department and the FBI for their investigation of this matter.
Ventura Man Sentenced to Ten Years for Possessing Child PornographyRead the Press Release
A man who possessed child pornography was sentenced August 1, 2013, to ten years in federal prison.
Brandon Phinney, age 28, of Ventura, Iowa, received the sentence after an April 1, 2013, guilty plea to one count of possession of child pornography. At the guilty plea, Phinney admitted that he possessed child pornography on his computer.Phinney was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Phinney was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed, and Phinney must also serve an eight-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Clear Lake Police Department, the Mason City Police Department, and the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-3005.
Union County Man Sentenced to Four Years in Prison for Possession of Child PornographyRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
Todd R. German, 51, of Richwood, Ohio was sentenced in U.S. District Court to 48 months in prison for possessing more than 10,000 images and 200 videos of child pornography. German was a fire service instructor at the Delaware Career Center.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI) and Delaware County Sheriff Russell L. Martin announced the sentence imposed today by Senior U.S. District Judge Peter C. Economus.
According to court documents, German left his job at the Delaware Career Center in March 2012. The day after he left, another employee found a thumb drive in German’s desk, placed it in a computer and found hundreds of images of child pornography. The employee contacted school officials who called the Delaware County Sheriff’s Office.
In April 2012, investigators executed a search warrant at German’s residence and found an external drive connected to his computer. A forensic examination of the external drive yielded more than 10,000 images and 222 videos of suspected child pornography. The investigation determined that the victims were from at least 17 different states and 7 different countries. German pleaded guilty in March, 2013 to one count of possession of child pornography.
“He basically had the American dream in every aspect of his life -- a long marriage, children, grandchildren, health, a meaningful career, respect of community, home ownership, and material possessions,” Assistant U.S. Attorney Deborah A. Solove wrote in a memorandum filed with the court prior to sentencing. “Although he has lost much of that through his actions that led to this case, he appears to be working on the child pornography issues and says he is grateful to have the opportunity to try address these issues that have troubled him throughout his life.”
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the investigation by FBI agents and Sheriff’s detectives, as well as Assistant U.S. Attorney Deborah Solove, who prosecuted the case.
Two South Dakota Men Charged with Federal Child Exploitation OffensesRead the Press Release
Mensur Malik and Salim Issa, both age 22, of Sioux Falls, South Dakota, have been indicted on federal child exploitation charges. The charges are contained in an Indictment unsealed July 17, 2013, in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about July 28, 2012, Malik and Issa knowingly traveled across a state line for the purpose of engaging in illicit sexual conduct. Under federal law, illicit sexual conduct involves sex acts with minors under certain circumstances. The Indictment also alleges that, on or about July 29, 2012, Malik transported a minor across a state line with the intent to engage in criminal sexual activity.
If convicted on all charges, Malik faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $500,000 fine, a $200 special assessment, and at least 5 years and up to life on supervised release following any imprisonment. If convicted, Issa faces a possible maximum sentence of 30 years’ imprisonment, a $250,000 fine, a $100 special assessment, and at least 5 years and up to life on supervised release following any imprisonment.
Malik and Issa appeared for a detention hearing on July 31, 2013, in federal court in Cedar Rapids and were held without bond. Their next appearance for trial is set for September 30, 2013.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Clear Lake, Iowa, Police Department and the Sioux Falls, South Dakota, Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-3024.
Two Sentenced in New York State for Dumping Thousands of Tons of Asbestos in Violation of the Clean Water ActRead the Press Release
Two individuals, Donald Torriero and Julius DeSimone, were sentenced in federal court in Utica, N.Y., for illegally dumping thousands of tons of asbestos-contaminated construction debris on a 28-acre piece of property on the Mohawk River in upstate New York, the Justice Department announced.
U.S. District Judge David N. Hurd sentenced Torriero to serve 36 months in prison followed by three years of supervised release. Torriero was immediately remanded into custody of the U.S. Marshals. DeSimone was sentenced to five years’ probation, including six months of home confinement. Both were ordered to pay $492,000 in restitution for, among other things, cleanup expenses at the site.
The two pleaded guilty to conspiring to violate the Clean Water Act, the Superfund statute, wire fraud and to defrauding the United States. In addition, Torriero pleaded guilty to substantive wire fraud charges, and DeSimone was convicted of making false statements to law enforcement in connection with a fabricated "permit letter" the conspirators created and used to dump at the site.
According to the evidence, Torriero, DeSimone and others conspired to fill in the entire property over the course of five years with pulverized construction and demolition debris that was processed at New Jersey solid waste management facilities and then transported to open property in Frankfort, N.Y. The plot was uncovered by law enforcement just months after the operation began, but not before the conspirators had already dumped at least 400 truckloads of debris at the site. Much of the material that was dumped was placed in and around waters of the United States and some of the material was found to be contaminated with asbestos. The conspirators then concealed the illegal dumping and recruited others to join in the illegal dumping by fabricating a New York State Department of Environmental Conservation (DEC) permit and forged the name of a DEC official on the fraudulent permit.
“Torriero and DeSimone endangered the health of both their fellow citizens and sensitive wetlands by violating numerous laws meant to ensure the proper disposal of toxic materials. They also committed other criminal acts in their attempts to cover up their misdeeds,” stated Acting Assistant Attorney General Robert Dreher of the Justice Department’s Environment and Natural Resources Division. “Holding these men responsible for their criminal activities will serve as notice to others involved in similar schemes that the Justice Department will not tolerate such flagrant disregard for the law and the environment.”
“Asbestos can cause cancer and other serious respiratory diseases; there is no safe level of exposure to it,” said Vernesa Jones-Allen, Acting Special Agent in Charge of EPA’s Criminal Investigation Division in New York. “The defendants in this case conspired to illegally dispose asbestos containing material. This case demonstrates that the American people will not tolerate those who make money by breaking the law and damage the environment.”
“This case demonstrates the commitment of local, state and federal law enforcement agencies to work together to protect the environment and the health of the citizens we serve,” said Richard S. Hartunian, U.S. Attorney for the Northern District of New York. “I commend all the law enforcement officers involved in this case for their hard work in bringing Torriero and DeSimone to justice.”
“The disposal of hazardous materials is closely regulated in New York State to protect public health and our environment,” said New York State Department of Environmental Conservation (DEC) Commissioner Joe Martens. “The forgery of permits by the defendants in this case was a blatant and potentially dangerous criminal act that undermined the integrity of the permit system. I applaud the collaborative work of DEC investigators and partners to halt this illegal dumping, apprehend the perpetrators, and bring them to justice.”
This case is related to the guilty pleas and sentencings associated with Eagle Recycling, Mazza & Sons Inc., Dominick Mazza, Cross Nicastro and Jon Deck. Mr. Deck is the last remaining individual awaiting sentencing.
This case was investigated by the New York State Environmental Conservation Police, Bureau of Environmental Crimes, EPA’s Criminal Investigation Division, Internal Revenue Service, New Jersey State Police Office of Business Integrity Unit, New Jersey Department of Environmental Protection, and Ohio Department of Environmental Protection. The case is being prosecuted by Assistant U.S. Attorney Craig A. Benedict of the Northern District of New York, and Trial Attorneys Todd W. Gleason and Gary Donner of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.
Three Men Sentenced to Lengthy Prison Terms for Conspiring to Distribute Heroin in the Washington, D.C. Metropolitan AreaRead the Press Release
-Defendants Conspired to Bring Shipments Here from New York-
WASHINGTON – Three men were sentenced today to lengthy prison terms for conspiring to distribute large quantities of heroin in the Washington, D.C., metropolitan area. They were arrested in 2012, following a nine-month investigation by law enforcement.
The sentences were announced by U.S. Attorney Ronald C. Machen Jr., Karl C. Colder, Special Agent in Charge of the Washington Division of the Drug Enforcement Administration, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Thaxton Young, Jr., 46, of Columbia, Md., Gerry Duane Burnett, 42, of Washington, D.C., and Jesse McLester Young, Jr., 42, of Mount Vernon, N.Y., were found guilty in May 2013 following a trial in the U.S. District Court of the District of Columbia. In addition to the conspiracy charge, Burnett was found guilty of possession with intent to distribute heroin and marijuana. The Honorable Beryl A. Howell sentenced the defendants today.
Thaxton Young, Jr. was sentenced to 11 years and three months in prison. Burnett was sentenced to 12 years and seven months in prison, and Jesse Young, Jr. was sentenced to 11 years and three months of incarceration. Each defendant also was ordered to pay an $89,000 forfeiture judgment for the gross receipts from the heroin distributed in the conspiracy.
Thaxton Young, Jr., Burnett and Jesse Young, Jr. were indicted in 2012, following an investigation by the DEA into people suspected of acting as wholesale distributors of heroin in the metropolitan area. The investigation determined that from May 2011 through March 2012, the defendants and others maintained a drug trafficking organization that supplied distribution amounts of heroin to dealers in the District of Columbia and Maryland.
The investigation revealed that Thaxton Young, Jr. and another conspirator obtained large quantities of heroin from his cousin and co-defendant Jesse Young, Jr. in the Bronx, New York area, which they transported back to the Washington, D.C. area for redistribution to wholesale traffickers, including Burnett.
Investigators seized over 170 grams of heroin during the investigation, along with over $7,000 in cash, along with jewelry valued at over $25,000.
In announcing the sentences, U.S. Attorney Machen, Special Agent in Charge Colder, and Chief Lanier commended the work of the agents, officers and investigators from the DEA and MPD who investigated the case. They also thanked the Maryland State Police, which provided assistance. They cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Jeremy Stoller and Regan Gibson, and Litigation Support Specialist Joshua Ellen.
Finally, they acknowledged the work of Assistant U.S. Attorneys Opher Shweiki, Steven B. Wasserman and Magdalena Acevedo, of the Violent Crime and Narcotics Trafficking Section, who prosecuted the case.
13-274Tax on the Run Owners and Others Plead Guilty in Tax Refund Scheme Involving Misuse of First-Time Home Buyer Tax CreditRead the Press Release
Impoverished Taxpayers Were Recruited to
Allow Their Names and SSNs to be Used in Filing Fraudulent ReturnsDALLAS — Four defendants, whose trial was to begin this Monday on charges related to a tax refund conspiracy they were involved in regarding the misuse of the First-Time Home Buyer Tax Credit, pleaded guilty this afternoon before U.S. District Judge Jorge A. Solis. The four have been on bond since their arrest in January 2012 by special agents with Internal Revenue Service (IRS) – Criminal Investigation. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Jason Phread Altman, Emanuel James Harrison and Fread Jamille Jenkins each pleaded guilty to one count of conspiracy to file false claims, which carries a maximum statutory penalty of 10 years in federal prison. However, according to the plea agreements filed today, the parties agree that 84 months is the appropriate custody disposition of each case. If the Court accepts the plea agreements, this provision is binding upon the Court.
Also today, Jarrod Phread Altman pleaded guilty to one count of false, fictitious or fraudulent claims. He faces a maximum statutory penalty of five years in federal prison. The two other defendants charged in the case, Rickel Shine and Billy Hamilton, each pleaded guilty, in May 2012 and February 2013, respectively, to one count of conspiracy to file false claims.
Each count of conviction also carries up to a $250,000 fine and restitution. In addition, according to administrative forfeiture settlement agreements filed, Jason and Jarrod Altman must forfeit two luxury vehicles that were seized by the government.
According to the factual resumes filed in the case, Jason and Jarrod Altman, along with Harrison, owned and operated a tax preparation business, Tax On The Run, located in Dallas. Jenkins worked as office manager for the business, while Shine and Hamilton worked as intermediaries and recruited clients on behalf of the owners.
Beginning in March 2009, Jason and Jarrod Altman, Jenkins, Harrison, Shine and Hamilton conspired to defraud the IRS, according to the factual resumes filed in the case. They used Tax On The Run to file false Forms 1040, in the names of numerous clients, which overstated and fabricated income and tax deductions on Schedule C and Forms 5405 by falsely representing that the taxpayers were entitled, under the provisions of the Housing and Economic Recovery Act of 2008, to claim a tax credit as a first-time homebuyer. As part of the scheme, according to factual resumes filed in their cases, Shine and Hamilton acted as intermediaries to recruit clients, and they were paid after they recruited impoverished taxpayers to allow their names and social security numbers to be used to file fraudulent tax returns. The fraudulent returns were routinely filed even though the tax preparers never met the taxpayers and with the full knowledge that none of the taxpayers qualified to claim the credit, according to the factual resumes.
Tax On The Run used Santa Barbara Bank and Trust (SBBT) to process refund anticipation loans based on the fraudulent returns filed. The factual resumes filed further state that after electronically filing the false tax returns, Tax On The Run would be notified by SBBT that the loan had been approved and a check could be printed and provided to the taxpayer. Once the check was printed, the taxpayer was transported to a local check cashing business and instructed to cash the refund check. After it was cashed, members of the conspiracy paid the taxpayer a small percentage of the refund and kept the remainder of the proceeds, according to the factual resume.
Defendant Jarrod Altman admitted, according to the factual resume filed in his case, that during tax year 2009, he failed to report approximately $71,133 in taxable income which was obtained from his business, Tax On The Run. Of that amount, Jarrod Altman admitted that he received $54,140 in the form of a payment by check by his brother, Jason Altman, for a 2007 Mercedes Benz S550, which was purchased in June 2009, for Jarrod Altman’s use, with money from Tax On The Run. He further admitted that he falsely reported $57,207 in taxable income for tax year 2009 that did not include the $71,133 income described above, and as a result of his false statements regarding his taxable income, Jarrod Altman caused $20,135 in tax harm to the IRS.
IRS-CI investigated the case. Assistant U.S. Attorneys J. Nicholas Bunch, Brian Poe and Rick Calvert are prosecuting
Sioux City Man Sentenced to Five Years for Receiving Child PornographyRead the Press Release
A man who downloaded child pornography was sentenced August 1, 2013, to five years in federal prison.
Michael Pedersen, age 56, of Sioux City, Iowa, received the sentence after an April 30, 2013, guilty plea to one count of receipt of child pornography. At the guilty plea, Pedersen admitted that he used the Internet to download child pornography.Pedersen was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Pedersen was sentenced to 60 months’ imprisonment. A special assessment of $100 was imposed, and Pedersen must also serve a ten-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation and the Federal Bureau of Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-4096.