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2 August 2013
Robert Lustyik, Former FBI Special Agent, and TwoCo-Conspirators Charged in White Plains Federal Court with Bribery SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Mythili Raman, the Acting Assistant U.S. Attorney General of the Criminal Division, and Michael E. Horowitz, the U.S. Department of Justice Inspector General, announced today the unsealing of a criminal Complaint (the “Complaint”) charging ROBERT LUSTYIK, a former FBI Special Agent in White Plains, JOHANNES THALER, and RIZVE AHMED, a/k/a “Caesar,” with a bribery scheme. The charges arise out of the solicitation by LUSTYIK, along with his alleged accomplice, THALER, of cash payments from AHMED in exchange for LUSTYIK and THALER’s providing confidential, internal law enforcement documents and information to AHMED which LUSTYIK had access to by virtue of his position as an FBI Special Agent. AHMED and THALER were arrested today on the charges in the Complaint and were presented before U.S. Magistrate Judge George A. Yanthis in the White Plains federal court. THALER was released on a personal recognizance bond and AHMED was detained without bail. LUSTYIK is currently detained in connection with a separate pending indictment in United States District Court for the District of Utah, where he will be initially presented on the charges in the Complaint.
U.S. Attorney Preet Bharara stated: “It is egregious when, as charged, a law enforcement officer, trained and sworn to uphold the law, transgresses into any kind of criminal behavior. It is particularly egregious when the accused was an FBI Special Agent who was willing to compromise the operations of the Bureau. But he and his co-defendants will now be treated no differently from any other person so accused. We will prosecute to the full extent of the law.”
According to allegations in the Complaint unsealed today in the White Plains federal courthouse:
LUSTYIK was an FBI Special Agent who worked in the White Plains Resident Agency. THALER was LUSTYIK’s friend, and AHMED was an acquaintance of THALER’s. From about September 2011 through March 2012, LUSTYIK, THALER, and AHMED engaged in a bribery scheme. As part of the scheme, LUSTYIK and THALER solicited payments of money from AHMED, in exchange for LUSTYIK’s agreement to provide internal, confidential documents and other confidential information to which LUSTYIK had access by virtue of his position as an FBI Special Agent. The Complaint alleges that AHMED was a native of Bangladesh who sought confidential law enforcement information, including a Suspicious Activity Report, pertaining to a prominent citizen of Bangladesh who was affiliated with an opposing political party (“Individual 1”). AHMED sought, among other things, to obtain information about Individual 1, to locate Individual 1, and to harm Individual 1 and others associated with Individual 1.
As part of the scheme, LUSTYIK and THALER exchanged text messages, including messages about how to pressure AHMED to pay them additional money in exchange for confidential information. For example, in text messages, LUSTYIK told THALER, “we need to push [AHMED] for this meeting and get that 40 gs quick . . . . I will talk us into getting the cash . . . . I will work my magic . . . . We r sooooooo close.” THALER responded, “I know. It’s all right there in front of us. Pretty soon we’ll be having lunch in our oceanfront restaurant . . . .” For another example, in or about late January 2012, LUSTYIK, upon learning that AHMED was considering using a different source to obtain confidential information about Individual 1, texted THALER, “I want to kill [AHMED] . . . . I hung my ass out the window n we got nothing? . . . . Tell [AHMED], I’ve got [Individual 1’s] number and I’m pissed. . . . I will put a wire on n get [AHMED and his associates] to admit they want [a Bangladeshi political figure] offed n we sell it to Individual 1].”
According to the Complaint, LUSTYIK and THALER accepted at least $1,000 from AHMED in exchange for the provision of confidential FBI information, including a Suspicious Activity Report. The Complaint also alleges that LUSTYIK and THALER schemed to obtain monthly cash bribes from AHMED, in increments of tens of thousands of dollars, in exchange for the provision of additional confidential law enforcement information about Individual 1 and for assistance in having criminal charges against a Bangladeshi political figure dismissed.
LUSTYIK, THALER, and AHMED are each charged in a four-count Complaint.
Count One charges LUSTYIK, THALER, and AHMED with conspiracy to bribe a public official, in violation of Title 18, United States Code, Section 371. Count Two charges LUSTYIK and THALER with soliciting and receiving bribes, in violation of Title 18, United States Code, Section 201(b)(2). Count Three charges AHMED with bribing a public official and offering to bribe a public official, in violation of Title 18, United States Code, Section 201(b)(1). Count Four charges LUSTYIK with unlawfully disclosing a Suspicious Activity Report (“SAR”), in violation of Title 31, United States Code, Section 5322(a).
LUSTYIK, 50, of Westchester County, faces, upon conviction, a maximum sentence of 25 years in prison.
THALER, 49, of Fairfield County, Connecticut, faces, upon conviction, a maximum sentence of 20 years in prison.
AHMED, 34, of Fairfield County, Connecticut, faces, upon conviction, a maximum sentence of 20 years in prison.
Acting Assistant Attorney General Raman and Mr. Bharara praised the efforts of the Department of Justice’s Office of Inspector General in connection with this investigation.
The prosecution is being handled by the U.S. Attorney’s Office for the Southern District of New York, White Plains Division, and by the Criminal Division’s Public Integrity Section of the U.S. Department of Justice. Assistant United States Attorney Benjamin Allee and Trial Attorney Emily Rae Woods are in charge of the prosecution.
The charges in the Complaint are merely accusations, and the defendants are presumed innocent until and unless proven guilty.
LustyikEtAlComplaint signed (2)
LustyikEtAlComplaint signed (2)Rapid City Woman Guilty of Drug ConspiracyRead the Press Release
United States Attorney Brendan V. Johnson announced that Diana Bald Eagle, age 39, of Rapid City, South Dakota, appeared before U.S. Magistrate Judge Veronica L. Duffy on July 26, 2013, and pled guilty to a charge of Conspiracy to Distribute a Controlled Substance.
A presentence investigation was ordered. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.
The penalty upon conviction is a mandatory minimum of 5 years and up to 40 years' imprisonment, and/or a $5,000,000 fine.
Between August 2009 and February 2013, Bald Eagle conspired with others to distribute methamphetamine on and around the Pine Ridge Indian Reservation.
The investigation was conducted by the Northern Plains Safe Trails Drug Task Force. The case is being prosecuted by Assistant U.S. Attorney Ted L. McBride.Prosecutors Charge Former JCCEO Official and Her Daughter with Near $500,000 Theft from AgencyRead the Press Release
BIRMINGHAM – The U.S. Attorney's Office has charged the former executive director of the Jefferson County Committee for Economic Opportunity and her daughter in connection with the theft of close to $500,000 from the non-profit organization, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
In separate informations filed in U.S. District Court, federal prosecutors charged RUTH GAYLE CUNNINGHAM, 63, with theft from a government program that had received more than $10,000 in federal funding or assistance, and charged her daughter, KELLI E. CAULFIELD, 31, with conspiracy in the scheme to defraud JCCEO.
Cunningham was executive director of JCCEO for more than 20 years before resigning the job in March. The organization employed Caulfield from May 2009 to January 2013. JCCEO is a community action agency that administers programs, including Head Start, for low-income and disadvantaged residents.
"JCCEO is an organization with 50 years of history helping some of our poorest citizens become part of the American Dream with education and assistance funded in part by federal taxpayer dollars," Vance said. "Cunningham abused the trust and discretion she was given to use this money wisely to benefit those in our community who are struggling. She used the agency's government funds as a personal piggy bank so that she and her daughter could line their pockets with hundreds of thousands of dollars intended to lift others out of poverty," Vance said. "As a community, we have to demand better from those who are charged with using public money for the benefit of all. I encourage anyone aware of this type of abuse of the public trust to contact the U.S. Attorney Office or the FBI."
“Serving the public is a privilege, not an opportunity for unjust personal enrichment," Schwein said. "Those who are entrusted to administer public programs, such as Ms. Cunningham, are expected to serve with integrity and honor. Greed and self-interest have no place in service to the community, and the FBI will continue to root out public corruption wherever we find it and at whatever level we find it,” he said.Cunningham and her daughter, both of Birmingham, have signed agreements with the government to plead guilty to the charges against them. Jointly, Cunningham and Caulfield are responsible for repaying $492,195 to JCCEO, according to their plea agreements. Cunningham agrees to pay that full amount to JCCEO. Caulfield's plea agreement cites her responsibility to repay $253,499 to JCCEO.
Cunningham acknowledges in her plea agreement that, between March 2009 and April 2010, she used JCCEO funds to make monthly mortgage payments on at least three residential properties she owned, and at least five residential properties her daughter owned, in Jefferson and Shelby counties. Cunningham also used JCCEO funds to pay property taxes on one of those properties, a house in Chelsea that she bought in 2007 with a mortgage loan of more than $1 million, according to court records.Cunningham also paid $293,413 in JCCEO funds to companies owned by her daughter, and to other contractors, for claimed repairs or renovations to the women's properties, according to their plea agreements.
As part of Caulfield's conspiracy, she acknowledges in her plea agreement that she created invoices citing repair or improvement work on the private properties and gave them to her mother, who submitted the invoices and corresponding check requests to the JCCEO finance director.
As executive director of JCCEO, Cunningham had check-signing authority up to $5,000. All of the invoices Caulfield prepared for her mother to submit for payment by JCCEO were below $5,000 and, therefore, required no second signature from a JCCEO board member on the agency's checks.
The maximum penalty for theft from a federally funded program is 10 years in prison and a $250,000 fine. The maximum penalty for conspiracy to defraud a federally funded program is five years in prison and a $250,000 fine.The FBI discovered the fraud at JCCEO while it was investigating allegations of a mortgage fraud scheme. That investigation led to federal prosecutors' charges against Cunningham and Caulfield, as well as to charges of conspiracy to defraud federally insured financial institutions against a real estate investor now living in Atlanta, and a Hoover mortgage broker. Cunningham and Caulfield bought most of the properties that later became part of their scheme to defraud JCCEO from the Atlanta investor.
The federal charges and associated plea agreements in all four cases were unsealed today in federal court in Birmingham.
The investor, the Rev. ROBERT PAUL HOLLMAN, 48, formerly of Dothan, and mortgage broker BRAD A. BOZEMAN, 34, of Hoover, are charged with conspiracy to defraud a federally insured financial institution by either making or transmitting false statements and reports intended to influence a financial institution in connection with the sale of residential properties.
Hollman agrees to pay $393,440 in restitution to banks affected by his scheme and Bozeman agrees to pay restitution of $41,460.
According to Hollman's and Bozeman's plea agreements, their mortgage fraud conspiracy took place as follows:
Hollman bought multiple residential properties in Jefferson and Shelby counties and, beginning about 2007, solicited people to buy the properties from him. He would agree, in advance of closing on the sales, to pay all or a portion of the down payments on the property and, afterward, to pay the monthly mortgage payments until the properties resold. Once Hollman had an agreement with a purchaser, or "borrower," he referred them to Bozeman to arrange a mortgage loan.
Hollman profited from the transactions because his debt on the properties was satisfied at closing and, in most of the transactions, he also received a cash payment from the sales. After a period of time, he would stop providing the borrowers money for the monthly mortgage payments and most of the properties ended up in foreclosure.
Hollman made false statements on mortgage documents by failing to disclose that he, not the borrower, was making the down payment or part of the down payment on the property. Bozeman made false statements on loan applications by including false income or not revealing all debts and liabilities of the purchasers, and transmitting that information as true and accurate.
The maximum sentence for conspiracy to defraud a federally insured financial institution is five years in prison and a $250,000 fine.
The FBI investigated the cases, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
Point Marion Man Charged with Enticing A Minor to Engage in Sexual ActivityRead the Press Release
FBI Seeking Information about Defendant
PITTSBURGH, Pa. - A Fayette County man has been indicted by a federal grand jury in Pittsburgh on a charge of attempting to induce a minor to engage in sexual activity, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on July 30, named Timothy E. Fowler, 46, of Point Marion, Pa., as the sole defendant.
According to the indictment presented to the court, Fowler attempted to knowingly persuade, induce, entice, or coerce a person under the age of 18 years to engage in sexual activity.
The law provides for a mandatory minimum sentence of 10 years in prison. 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 Amy L. Johnston is prosecuting this case on behalf of the government.
The Fayette County District Attorney's Office and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Anyone with information regarding Fowler is encouraged to contact the Federal Bureau of Investigation at 412.432.4000.
Pilot and Passenger of Plane That Crashed at Yoakum County Airport After Refueling Plead Guilty to Drug ChargesRead the Press Release
Approximately 160 Pounds of Marijuana on Board Plane
That Belly Landed at Airport in Plains, TexasLUBBOCK, Texas — A pilot and his passenger, who belly landed their Beechcraft plane at the Yoakum County Airport on April 30, 2013, appeared this morning before U.S. District Judge Sam R. Cummings and pleaded guilty to a felony drug charge. Pilot Gregory Thomas, 50, of Sacramento, California, and his passenger, Dorothea Cangelosi, 66, of Waller, Texas, each pleaded guilty to one count of possession with intent to distribute 50 kilograms or more of marijuana and aiding and abetting. They each face a maximum statutory penalty of 20 years in federal prison and a $1 million fine, and will remain on bond pending sentencing. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea documents filed in the case, on April 30, 2013, deputies with the Yoakum County Sheriff’s Department (YCSD) responded to a plane crash at the Yoakum County Airport, in Plains, Texas. When they arrived, they observed a Beechcraft Bonanza A36 plane that had belly landed in a field approximately 50 yards past the end of the runway.
On April 29, 2013, the day before the crash, Cangelosi flew a commercial airline from Houston, Texas, to Sacramento, California, where she met up with Thomas, a charter pilot, who was paid approximately $5,000 cash to fly her from Sacramento back to Houston. They left Sacramento during the early morning hours of April 30, 2013, and in route to Houston, landed in Plains to refuel. After fueling, the plane encountered engine problems when attempting to take off and crashed.
The YCSD received a 911 call from an individual who reported seeing a female with bags by a road that runs parallel to the airport. Later, deputies located four large canvas duffel bags that were hidden next to a bush more than 100 yards from the crash site. A YCSD drug-detector dog alerted on the bags for the presence of drugs and deputies discovered 151 individual packages of marijuana, with a total weight of 72.8 kilograms or 160 pounds. The drug-detector dog also alerted to the presence of drugs inside the plane.
Thomas admits that after the plane crashed, he and Cangelosi retrieved the duffel bags from the plane’s passenger compartment and hid them more than 100 yards away, across two barbed-wire fences and a road, from the plane. Cangelosi admitted that Thomas carried most of the bags and threw some of them over the fence. They both admitted that they had intended to distribute the marijuana to other individuals in Houston.
The case was investigated by the Drug Enforcement Administration, the Federal Aviation Administration, the YCSD and the Texas Department of Public Safety. Assistant U.S. Attorney Justin Cunningham prosecuted.
Pennsylvania Man Sentenced in Manhattan Federal Court to 57 Months in Prison for Bribing A New York City Department of Education Employee in Furtherance of $2.7 Million FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that NELSON RUIZ was sentenced in Manhattan federal court to 57 months in prison and restitution for defrauding the New York City Department of Education (“DOE”) out of approximately $2.7 million and to bribing a DOE employee in furtherance of the fraud scheme. RUIZ pled guilty in December 2012 to one count of mail fraud and one count of bribery concerning programs receiving federal funds before U.S. District Judge John G. Koeltl, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Nelson Ruiz lined his pockets with $2.7 million of scarce New York City resources meant for special-needs children and bribed a public employee in the process. Today, he was made to pay for his crimes with 57 months in prison and restitution of the $2.7 million. We will continue to do everything in our power to pursue and prosecute those who defraud the government, particularly those who shamelessly funnel money away from some of the city’s neediest programs.”
According to the Complaint, the Information, the plea agreement, and statements made in court:
From 2008 through June 2012, RUIZ used six companies that he controlled (the “RUIZ Companies”) to bill the DOE approximately $2.7 million for sign language interpretation services. According to the DOE billing forms that RUIZ submitted, the sign language interpretation services were provided during that time to 11 New York City public schoolchildren – all of whom had varying special needs, including cognitive, developmental, academic, and language delays (the “11 Students”) – at their schools.
None of the sign language interpretation services for which the DOE paid the RUIZ Companies were ever provided to any of the students. In fact, none of the students actually needed the services that the RUIZ Companies claimed to have provided and for which he received approximately $2.7 million. For example, during the 2010-2011 and 2011-2012 academic years, at least three of the 11 Students were not even enrolled in a DOE school. In addition, from July 2010 through May 2012, RUIZ falsely certified on 75 DOE billing forms that he had provided approximately $200,000 worth of sign language interpreting services to one of the 11 Students, even though that student never received any such services during that period and had not been a New York City public school student since 2009. Ruiz also used students’ personal information, submitted fraudulent DOE applications and billing forms, forged the signatures of at least two students’ parents and seven DOE officials – one of whom had died prior to the date of her forged signature, and another who had retired six years prior to the date of her forged signature.
As part of this scheme, RUIZ paid hundreds of dollars each month to a DOE employee, Thomasina Chappell, to whom he submitted the fraudulent billing forms for the 11 Students. RUIZ paid these bribes in exchange for her assistance in, among other things, expediting the processing of and payment to RUIZ for the fraudulent sign language interpretation bills.
In addition to his prison term, RUIZ, 36, of Shohola, Pennsylvania, was ordered to forfeit $2,720,860, representing the proceeds of the crime, including approximately $275,000 that the Government seized from the RUIZ Companies’ bank accounts at the time of RUIZ’s arrest. He was also ordered to pay $2,720,860 in restitution to the New York City Department of Education and a $200 special assessment fee.
Chappell pled guilty in June 2013 to one count of conspiring to commit federal programs bribery in connection with her receipt of cash from RUIZ in exchange for her assistance in processing invoices for sign language interpretation services purportedly being provided by the RUIZ Companies. She faces a maximum sentence of five years in prison, and is scheduled to be sentenced by Judge Koeltl on December 13, 2013.
Mr. Bharara praised the investigative work of the New York City Department of Investigation and the Special Commissioner of Investigation for the New York City School District.
This case is being prosecuted by the Office’s Public Corruption Unit. Assistant United States Attorney Paul Krieger is in charge of the prosecution. Assistant United States Attorney Andrew Goldstein is in charge of the forfeiture aspects of the case.
One Man Sentenced to 50 Years in Prison, Two Others Plead Guilty to Child Pornography ChargesRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that one man was sentenced and two pleaded guilty Thursday to various child pornography related charges. The sentencing and guilty pleas were held before U.S. District Judge Patricia Minaldi.
KANSAS MAN SENTENCED TO 50 YEARS FOR PRODUCING CHILD PORN
Lonnie Allen Truitt, 27, of Coffeyville, Kan., was sentenced to 50 years in prison and a lifetime of supervised release for production of child pornography. According to evidence presented at the guilty plea, the defendant began text messaging a 15-year-old girl in east Texas on November 1, 2011. Truitt convinced the girl to provide him with sexually explicit images. Between November 15 and 30, 2011, the defendant traveled to Texas to meet with the girl. Truitt and the girl then traveled to a camp in Lake Charles where they engaged in sex acts. Truitt was arrested when camp staff members became suspicious and called law enforcement authorities. He pleaded guilty on April 11, 2013.
“Today’s sentencing shows that Homeland Security Investigations (HSI) and its law enforcement partners will identify and seek prosecution of sexual predators everywhere regardless of where they may travel to flee from justice,” said HSI New Orleans Special Agent in Charge Raymond R. Parmer Jr. Parmer.
EX-TUGBOAT CAPTAIN PLEADS GUILTY TO TRANSPORTING CHILD PORN
Former tugboat captain Kenneth Dwight Dickey, 57, of Foley, Ala., pleaded guilty to transporting child pornography. According to evidence presented at the guilty plea, law enforcement authorities detected Dickey downloading child pornography using “peer-to-peer” software. Those using peer-to-peer software usually take a file and place it in a “shared folder” on a computer for the purpose of distribution with other individuals on the internet. A search of the defendant’s computer and phone on October 15, 2012 showed that Dickey was in possession of child pornography. He also admitted to transporting child pornography from Mississippi to the Western District of Louisiana. The child pornography on the computer was sadistic in nature.
Dickey faces up to 20 years in prison, five years to life of supervised release, and a $250,000 fine, for transporting child pornography.
WESTLAKE MAN PLEADS GUILTY TO POSSESSING CHILD PORN
Michael Sonnier, 31, of Westlake, La., pleaded guilty to possession of child pornography. According to evidence presented at the guilty plea, law enforcement authorities detected Sonnier downloading child pornography using file sharing software. A search of the defendant’s computer and phone on October 18, 2012 showed that he had downloaded more than 26 movies of hardcore child pornography, which included sadistic material depicting prepubescent children.
Sonnier faces up to 10 years in prison, five years to life of supervised release, and a $250,000 fine for possession of child pornography.
“The defendants in these cases are child predators who participated or facilitated the abuse of children,” Finley stated. “The public should be aware that these criminals use cell phones, computers, and other technology to connect with minors or to download images of children being sexually abused. This office will continue to prosecute these cases to the fullest extent of the law in order to protect the children of this community.”
Homeland Security Investigations investigated the cases. Assistant U.S. Attorney John Luke Walker is prosecuting the cases.
All of the cases were brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be submitted anonymously.
Norwalk Man Impersonated Organized Crime Figures to Extort $200,000 from Fairfield County BusinessmanRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that JOSEPH CASOLO, 45, of Norwalk, waived his right to indictment and pleaded guilty yesterday before United States Magistrate Judge Thomas P. Smith in Hartford to one count of extortion.
According to court documents and statements made in court, between approximately September 2010 and December 2011, CASOLO extorted money from a small-business owner in Fairfield County by impersonating organized crime figures. CASOLO threatened the victim in person, in phone conversations and in text messages using multiple personas, repeatedly stating or implying that if the victim failed to make the extortion payments, the victim, the victim’s spouse, and the victim’s daughter would be harmed with violence. CASOLO also enlisted the assistance of an individual who identified himself as “Lorenzo,” the organized crime family’s “enforcer,” and made multiple threatening calls to the victim at CASOLO’s direction.
The investigation has revealed that the victim made more than $200,000 in cash payments to CASOLO as a result of his threats. CASOLO shared a portion of these funds with the individual who played the role of “Lorenzo.”
CASOLO, who has been detained since his arrest on November 20, 2012, is scheduled to be sentenced by United States District Judge Vanessa L. Bryant in Hartford on October 24, 2013. CASOLO faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the FBI Fairfield County Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, the Stamford Police Department, the Bridgeport Police Department and the Connecticut State Police. This case is being prosecuted by Assistant United States Attorney Hal Chen.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Meth Dealer Arrested for Second TimeRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and William J. Bryant, Assistant Special Agent in Charge of the Little Rock District Office of the Drug Enforcement Administration (DEA) announced that Chester Green, age 32, was arrested yesterday and charged today on a federal Complaint with distribution of methamphetamine.
The arrest was made after a confidential informant made a methamphetamine purchase under the direction of law enforcement. The Arkansas State Police is conducting an investigation regarding shots fired during the arrest. No one was injured in the incident. This is the second arrest and federal drug distribution charge for Green in the past three months. A Motion to Revoke his bond was filed along with the Complaint. Green is in custody. His initial appearance on this charge is expected to be early next week.
Chester Green was out on bond from an arrest on May 21, 2013. He was arrested with five others on a 22-count indictment charging ten defendants from Central Arkansas and Texas with multiple drug offenses. Approximately 34.5 kilograms of methamphetamine, 22 pounds of marijuana, and $211,000 in U.S. currency were seized in Operation "SoLow". In addition, the Lonoke County Sheriff's Department uncovered the first methamphetamine conversion lab seen in the State of Arkansas to date, which was directly connected to two of the defendants indicted in the SoLow case. This lab was used to convert methamphetamine into crystal methamphetamine or "Ice." "Ice" is high-purity methamphetamine.
"The effect of meth and more particularly, "Ice," on our communities is a serious concern," stated Thyer. "Many studies have shown its devastating effect on the user's health. Meth labs pose a health risk to those nearby and an environmental risk due to the chemicals used and discarded in the process. This office is working closely with the DEA and Drug Task Forces across the State to prosecute to the full extent of the law those who seek to bring this scourge into our communities."
"Methamphetamine continues to be the number one drug threat in the state of Arkansas", said Bryant. "The dismantlement of this drug trafficking organization made a significant impact on the Central Arkansas community. Based on the significant seizures made in this investigation, it kept this large amount of methamphetamine from being distributed in our communities in Arkansas. The seizure of this large methamphetamine conversion lab in this case is a first for Arkansas, however other southern states have seen an increase in these types of labs."
The DEA and Central Arkansas Drug Task Force initiated an investigation into the drug-trafficking activities of Chester Green, aka "Cheese," in early 2012. Through that investigation, law enforcement learned that Green was distributing large quantities of methamphetamine in Central Arkansas and that he was being supplied by a distribution network out of Texas. The DEA, the Central Arkansas Drug Task Force, and the Arkansas State Police made multiple controlled purchases of methamphetamine from defendants during this investigation. Law enforcement also learned during the course of the investigation that one of the defendants being supplied with methamphetamine by Green, Timothy Vachon Johnson, is an employee of the United States Postal Service. Timothy Johnson was seen picking up methamphetamine from Green in his mail truck while on duty in Searcy.
The indictment was handed down by a Federal Grand Jury on March 9, 2013. The counts include conspiracy to distribute and to possess with intent to distribute more than 500 grams of methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine and marijuana, and use of telephone to facilitate a drug trafficking crime. (See defendant/charge list attached.). If convicted of conspiracy to distribute more than 500 grams of methamphetamine each defendant will face a sentence of not less than 10 years to life imprisonment.
This investigation is designated as a Gulf Coast High Intensity Drug Trafficking Area (HIDTA) and as an Organized Crime and Drug Enforcement Task Force (OCDETF) case . Through the inclusion of Arkansas into the Gulf Coast HIDTA, law enforcement is provided additional training and tools to disrupt and dismantle major drug trafficking organizations in Arkansas.
The investigation for this arrest and the original SoLow Operation was conducted by the DEA. The SoLow Operation also included assistance from HIDTA #61 which consists of special agents from the DEA, as well as officers and personnel from the following agencies: Pine Bluff Police Department; Jefferson County Sheriff's Department; Jacksonville Police Department; 20th Judicial District Drug Task Force; Little Rock Police Department; Arkansas Highway Police; and the Arkansas National Guard. Also providing investigative assistance was the United States Post Office - Office of the Inspector General. The U.S. Attorney also thanks the following state and local partners who provided valuable assistance to the Task Force for the SoLow investigation and arrests: the Arkansas State Police, Homeland Security Investigations, White County Sheriff's Department, Lonoke County Sheriff's Department, Little Rock Police Department, Bald Knob Police Department, Higginson Police Department, and the Searcy Police Department. The indictment is being prosecuted by Assistant United States Attorney Benecia B. Moore.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty. The charges set forth in a Complaint are merely allegations. A federal Grand Jury will decide whether to indict on these charges. The defendant is presumed innocent until proven guilty.
SoLow DEFENDANTS/CHARGES
Conspiracy to distribute and possess with intent to distribute methamphetamine:
Chester Green, aka "Cheese," 32, detained on new charge August 2, 2013
Olen Jay Defoure, 35, released Justin Ellis, 25, released
Chevis Johnson, 27, detained on separate charges in Western District of Arkansas
Rodney Johnson, 34, released
Timothy Vachon Johnson, 37 released
Sammy Antoine Neal, 37, released
Marco Antonio Portes-Ortega, aka "Tony," age unknown, fugitive
Jose Refugio Ruiz-Juarez, aka Jose Ruiz-Cortes, aka "Cuco," 40, detained on separate charges
Roxana Whisenhunt, aka Roxana de al Rosa-Ramirez, 34, detained on separate charges
In addition to the conspiracy charges, the following defendants are also charged with the following crimes:
Chester Green, aka "Cheese", distribution of methamphetamine (2 counts), use of a telephone to facilitate a drug trafficking crime (2 counts).
Olen Jay Defoure, possession with intent to distribute methamphetamine (1 count).
Chevis Johnson, possession with intent to distribute methamphetamine (1 count), use of a telephone to facilitate a drug trafficking crime (1 count).
Rodney Johnson, possession with intent to distribute methamphetamine (1 count).
Timothy Vachon Johnson, distribution of methamphetamine (3 counts), use of a telephone to facilitate a drug trafficking crime (2 counts).
Sammy Antoine Neal, possession with intent to distribute methamphetamine (1 count).
Justin Ellis, use of a telephone to facilitate a drug trafficking crime (2 counts).
Marco Antonio Portes-Ortega, aka "Tony," use of a telephone to facilitate a drug trafficking crime (2 counts).
Jose Refugio Ruiz-Juarez, aka Jose Ruiz-Cortes, aka "Cuco," possession with intent to distribute methamphetamine (1 count), possession with intent to distribute marijuana (1 count)
Roxana Whisenhunt, aka Roxana de al Rosa-Ramirez, possession with intent to distribute methamphetamine (1 count), possession with intent to distribute marijuana (1 count), use of a telephone to facilitate a drug trafficking crime (1 count).
STATUTORY SENTENCES
Conspiracy to possess with intent to distribute more than 500 grams of methamphetamine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Possession with intent to distribute more than 500 grams of methamphetamine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Distribution of more than 5 grams of methamphetamine actual and possession with intent to distribute more than 50 grams of methamphetamine are punishable by not less than 5 years, not more than 40 years, incarceration in the Bureau of Prisons with a possible fine of up to $5,000,000, and not less than 4 years supervised release.
Distribution and possession with intent to distribute less than 50 grams of methamphetamine are punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Possession with intent to distribute less than 50 kilograms of marijuana is punishable by not more than 5 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 2 years supervised release.
Use of a communication facility to facilitate a drug trafficking crime is punishable by not more than 4 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 1 year supervised release.
Member of Violent Robbery Crew Sentenced to 65 Years in Prison After Being Found Guilty in Manhattan Federal Court of Murder, Nine Robberies, and Firearms ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JERMAINE DORE, a member of a violent robbery crew operating in the Bronx and Westchester County, New York, was sentenced today in Manhattan federal court to 65 years in prison. DORE and his co-defendant Dwayne Barrett were convicted in March 2013 of murder, robberies, and firearms charges after a two-week jury trial before U.S. District Judge Richard J. Sullivan, who imposed today’s sentence.
DORE was sentenced based on his convictions on the following seven counts: (1) participating in a conspiracy to commit robberies from 2010 through January 2012; (2) using, carrying, or possessing firearms in connection with the robbery conspiracy; (3) committing a robbery on October 29, 2011, at an apartment on Radcliff Avenue in the Bronx, New York; (4) using, carrying, or possessing firearms in connection with the October 29 robbery; (5) committing a robbery on December 12, 2011, in the vicinity of 267 South Fourth Avenue, Mount Vernon, New York; (6) using, carrying, or possessing firearms in connection with the December 12 robbery; and (7) causing the death of Gamar Dafalla, one of the victims of the December 12 robbery.
Manhattan U.S. Attorney Preet Bharara said: “Jermaine Dore marauded across Pennsylvania, the Bronx and Westchester County in a series of violent robberies against local merchants, including one cold-blooded attack that left a victim dead. A jury found him and his co-defendant Dwayne Barrett guilty, and now Dore has paid for his crimes with a steep sentence.”
According to the Superseding Indictment and the evidence presented at trial:
Between August 2011 and January 2012, DORE and Barrett participated in nine separate robberies. They carried out those robberies, using weapons – including firearms and knives – to injure, terrorize, and in one case murder, one of their victims. The nine robberies were:
- A robbery that took place on August 22, 2011, in Matamoras, Pennsylvania, during which an individual who owns a gas station and store was assaulted and robbed of approximately $45,000 in business proceeds;
- A robbery that took place on October 5, 2011, in the Bronx, New York, during which two individuals who sell telephone calling cards to bodegas, grocery stores, and other commercial locations, were robbed of approximately $700;
- A robbery at knifepoint that took place on October 10, 2011, in the Bronx, New York, during which the employee of a bodega was robbed of a cellphone and laptop computer;
- A robbery at knifepoint that took place on October 11, 2011, in New Rochelle, New York, during which an individual who sold telephone calling cards was beaten and robbed of more than $6,000 and telephone calling cards valued at approximately $6,000;
- A robbery at gunpoint that took place on October 29, 2011, of an individual who owns a poultry market in the Bronx, New York, during which approximately $15,000 in business proceeds were taken;
- A robbery at gunpoint on December 12, 2011, in Mount Vernon, New York, during which the defendants attempted to rob three victims engaged in the business of selling cigarettes to other individuals and commercial establishments, and shot and killed one of the victims;
- A robbery that took place on December 12, 2011, in the Bronx, New York, during which an individual employed by a company that sells tobacco products to commercial establishments was threatened with a gun and a knife and robbed of more than $15,000;
- A robbery that took place on December 31, 2011, in the Bronx, New York, during which an individual who sold telephone calling cards was beaten and robbed of approximately $3,000 and 100 telephone calling cards; and
- A robbery at knifepoint that took place on January 7, 2012, in the Bronx, New York, during which an individual who owns a business that supplies merchandise to bodegas was assaulted and robbed of approximately $1000.
In addition to DORE, 26, of the Bronx, New York, Judge Sullivan is scheduled to sentence Barrett on September 25, 2013. Barrett faces a maximum sentence of life in prison.
Three other defendants pled guilty to related charges prior to trial: Fahd Hussain, Taijay Todd, and Tameshwar Singh. Hussain was the operator of One M Stationery Store, located on White Plains Road in the Bronx, New York, who exploited his relationships with other business owners, including individuals who supplied Hussain’s store with telephone calling cards and other merchandise, personal friends, and family members in targeting the robbery victims. Many of the victims were business owners and members of the Yemeni community in New York City, as was Hussain. Todd participated in several of the robberies with DORE and Barrett. Singh was a business associate of Hussain who engaged in the transportation of untaxed cigarettes. Hussain, Todd, and Singh are scheduled to be sentenced by Judge Sullivan on September 11, August 8, and August 9, 2013, respectively.
Mr. Bharara praised the New York Division of the United States Bureau of Alcohol, Tobacco, Firearms and Explosives and the Police Department for the City of New York for their work in this investigation.
The prosecution of this case is being overseen by the Office’s Violent Crimes Unit. Assistant United States Attorneys Amy Lester and Jessica Masella are in charge of the prosecution.
McCandless Man Indicted on Child Exploitation ChargesRead the Press Release
PITTSBURGH, Pa. - An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on charges of distribution, receipt, and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The three-count indictment, returned on July 30, named Mark Janosko, 47, of Pittsburgh, Pa., as the sole defendant.
According to the indictment, on or about July 3, 2013, Janosko distributed images containing material depicting the sexual exploitation of minors. The indictment further alleges that on or about July 3, 2013, Janosko received images containing material depicting the sexual exploitation of minors. Finally, the indictment alleges that on or about July 19, 2013, Janosko possessed visual depictions, namely, images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 50 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police, and the Indiana County and Allegheny County District Attorney's Offices and the McCandless Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Maryland Man Sentenced to 17-Year Prison Term for Pair of Robberies of Metro PassengersRead the Press Release
-Second Man Recently Sentenced to 14 Years in Prison For His Role in Crimes-WASHINGTON – Clifton Smith, 21, of Oxon Hill, Md., was sentenced today to 17 years in prison for his role in a series of crimes, including two robberies that took place last year on Metrorail trains, U.S. Attorney Ronald C. Machen Jr. announced.
Smith and a co-defendant, Alazajuan Gray, 20, of Washington, D.C., were found guilty by a jury in May 2013 of armed robbery, robbery, obstruction of justice, threats, contempt of court, carrying a dangerous weapon and other charges. The verdicts followed a trial in the Superior Court of the District of Columbia. Gray was sentenced July 23, 2013, to a 14-year prison term. Both defendants were sentenced by the Honorable Herbert B. Dixon, Jr.
Upon completion of their prison terms, both men will be placed on five years of supervised release.
According to the government’s evidence, on Sept. 21, 2012, at about 11:30 p.m., Gray and Smith approached several college students who had recently moved to Washington, D.C. as these college students, including the victim, were on a Metrorail train at the Fort Totten station. Gray, who was armed with a handgun, took the victim’s iPhone and money. Smith encouraged Gray to take the victim’s property. The victim did not report the crime at the time; Smith told him not to “snitch” and tell the police or he would be harmed.
One week later, on Sept. 28, 2012, at 8:30 p.m. the same victim, who was returning home from his part-time job he used to pay for community college, was at the Fort Totten Metro station and again encountered Gray and Smith. Gray approached him and flashed a gun. Gray and Smith chased the victim into the station’s kiosk. While inside the kiosk, Smith demanded if he was “snitching” and then assaulted the victim. Gray and Smith fled, but soon were caught by police.
Neither the gun nor the victim’s iPhone were found on either of the defendants. However, police found an iPhone near the location where Smith was stopped that night by the Metro Transit Police. The iPhone was linked to a separate Sept. 28, 2012 robbery. That robbery occurred at 7:30 p.m. on a Metrorail train at the Gallery Place/Chinatown station. In that incident, Gray grabbed an iPhone from a woman who had also recently moved to Washington, D.C. She was studying her graduate school homework as the train arrived at the station. After Gray snatched the iPhone, Smith then blocked the victim’s attempt to chase after Gray.
Cellular tower evidence placed Gray’s cell phone at the scene of the first armed robbery.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department. He also expressed appreciation to the Metro Transit Police and the FBI for assisting in the investigation. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Todd McClelland, Lynette Briggs, Lynda Randolph, and Kendrell Smith; Litigation Technology Specialists Anisha Bhatia, Thomas Royal, Will Henderson, Josh Ellen, Paul Howell, Claudia Gutierrez, and Leif Hickling; Victim/Witness Advocates Jennifer Clark and James Brennan; interns Ashley P. Foote, Taylor Jones and Chelsea King; former intern Justin Bennett, and Assistant U.S. Attorneys Suzanne Curt and Chrisellen Kolb, Deputy Chiefs of the Appellate Division. Finally, he thanked Assistant U.S. Attorney Phil Selden, of the Felony Major Crimes Section, who is prosecuting the matter.
13-276Madison Attorney Sentenced for Bankruptcy Fraud SchemeRead the Press Release
Jackson, Miss – Michael E. Earwood, 61, an attorney from Madison, Mississippi, was sentenced today in U.S. District Court to 46 months in prison followed by three years of supervised release for bankruptcy fraud, announced U.S. Attorney Gregory K. Davis, Acting U.S. Trustee Henry G. Hobbs, Jr. of Region 5, FBI Special Agent in Charge Daniel McMullen and Jon T. Rymer, Inspector General of the FDIC. Earwood was also ordered to pay restitution in the amount of $792,228.53.
Earwood previously pled guilty to devising and executing a scheme to obtain money from a business partner by falsely representing that the money would be used to maintain real property owned by Kinwood Capitol Group. He admitted transferring title to the real property assets of the business without the knowledge and consent of his business partner, who held a majority interest in the assets of the business. Earwood admitted that he transferred these assets to his own company named Northlake Development. He then used that property as collateral for bank loans to Northlake Development, but still continued to solicit money from the business partner for a period of time. Earwood admitted that when the bank attempted to foreclose on the Northlake Development loan, he placed Northlake Development into bankruptcy, and continued to conceal the unauthorized transactions from his business partner and the banks from which he had obtained loans.
This case was prosecuted by First Assistant U.S. Attorney Harold Brittain, Assistant U.S. Attorney Carla J. Clark, and Special Assistant U.S. Attorney Sammye S. Tharp. The investigation was conducted by the Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG) and the Federal Bureau of Investigation, assisted by the Office of the U.S. Bankruptcy Trustee, Region 5.
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Little Rock Man Sentenced to 15 Years in Prison in District’s First Sex Trafficking CaseRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas announced that United States District Judge J. Leon Holmes sentenced Jermaine Lamon Roy, age 22, of Little Rock to 15 years imprisonment followed by 3 years of supervised release for sex trafficking.
“The women forced into sex trafficking now know that Roy will not be able to enslave them for many years to come,” stated Thyer. “They have the opportunity to regain their dignity and rebuild their lives without the threat of violence coercing them into sexual servitude. I’m grateful to our many law enforcement partners on the Denied Innocence Task Force for their commitment to protect young women of Arkansas from domestic sex trafficking.”
The case was investigated by the Little Rock Police Department Vice Unit in conjunction with the FBI through the Denied Innocence Task Force. They conducted a series of three undercover prostitution operations. Through these operations they learned of a pimp working in Little Rock using the name Vegas. During the third undercover operation, the Denied Innocence Task Force came in contact with a victim who identified the man using the name Vegas as her pimp. Vegas, later determined by investigators to be Roy, was arrested as a result of that sting operation.
Roy was charged in a Superseding Indictment on May 9, 2013, with one count of sex trafficking by the use of force, fraud, or coercion. August 2, 2013, after four and one-half hours of deliberation following four days of testimony and presentation of evidence, the jury found Roy guilty. Testimony from the victim, family members of the victim, and another prostitute who worked for Vegas showed that Roy routinely used force or threatened the use of force to cause the victim to engage in commercial sex acts.
This case was investigated by the Little Rock Police Department Vice Squad in partnership with the FBI Denied Innocence Task Force, of the FBI, the Little Rock, North Little Rock, Benton, Bryant, and Conway Police Departments, the Saline County Sheriff's Office, Arkansas State Police, Homeland Security Investigations, and the United States Marshal's Service. The case was prosecuted by Assistant United States Attorneys Marsha Clevenger, Tricia Harris and Kristin Bryant.
Kaufman County Man Sentenced to 30 Years in Federal Prison for Producing Sexually Explicit Photos of Small ChildrenRead the Press Release
DALLAS — Billy Wayne Johnson, 55, of Scurry, Texas, was sentenced today by Chief U.S. District Judge Sidney A. Fitzwater to 30 years in federal prison and a lifetime of supervised release following his guilty plea in April 2013 to a superseding information charging one count of transportation of child pornography and one count of possession of child pornography. Johnson has been in custody since his arrest in February 2013 on a related federal criminal complaint. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, the investigation began in December 2012 when a special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) was conducting an undercover investigation to identify persons who were distributing child pornography using peer-to-peer file-sharing and the Internet. The investigation revealed an IP address that was connected to Johnson.
Johnson admitted that he obtained images of child pornography from other peer-to-peer users/members in his private network of contacts, and that he downloaded, viewed and shared images of child pornography. A forensic evaluation of Johnson’s laptop and thumb drive that were seized revealed more than 1600 images and 194 videos of child pornography. Also located on his laptop were lewd and lascivious photographs, as well as a video, that he admitted taking of boys under age six. He further admitted that some of the images and videos he possessed depicted sadistic images of prepubescent minors. He also admitted that he engaged in several chats with other members of his peer-to-peer network in which he and the others discussed their interest in molesting and sexually assaulting children under the age of six.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI was in charge of the investigation; Assistant U.S. Attorney Camille Sparks prosecuted.
Jordanian Sentenced for Marrying on Two Separate Occasions to Evade Immigration LawsRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that Emad Edin Yousef Abdallah, 29, of Jordan, was sentenced Thursday by U.S. District Judge Richard T. Haik, to time served and two years of supervised release for marrying on two separate occasions in an attempt to evade U.S. immigration laws. Haik stated that Abdallah had agreed to leave the United States within 10 days of sentencing. The judge also stated that if Abdallah returns to the United States within the two year supervised release period, the terms of his federal supervised release will be reinstated.
According to evidence presented at the guilty plea, the defendant admitted that he entered into two fraudulent marriages to change his immigration status and evade the immigration laws of the United States. The March 3, 2009, marriage ended in divorce in June of 2010, and Abdallah married another woman on June 27, 2011. He admitted that the second marriage also took place in part to change his immigration status and evade immigration laws.“The defendant in this case admitted to illegally getting married on two separate occasions in order to remain in this country,” Finley stated. “His actions were a willful violation of immigration laws. My office will continue to look at these cases and prosecute them when warranted.”
United States Immigrations and Customs Enforcement conducted the investigation. Assistant U.S. Attorney James T. McManus prosecuted the case.
Indictment Unsealed Following Arrest Charging Three with the Alleged Violent Robbery of Jewelry StoreRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that an indictment charging three individuals with allegedly being involved in the violent robbery of a York County jewelry store has been unsealed.
According United States Attorney Peter J. Smith, Jamell Smallwood, age 42, of Allentown, Pennsylvania, Timothy Forbes, age 31, of Allentown, Pennsylvania and Jesse Brewer, age 38, of Jamaica, New York, were charged with robbery and possession of a firearm during a crime of violence.
An indictment returned by a Harrisburg grand jury on January 30, 2013, was sealed pending the arrest of Smallwood. A superseding indictment was returned on May 15 adding charges against Forbes and Brewer.
The charges are the result of allegations that on July 12, 2012, Smallwood, Forbes and Brewer robbed White Jewelers in York, Pennsylvania and shot the owner of the store three times, severely injuring him.
The case is being jointly investigated by the Federal Bureau of Investigation and the York Area Regional Police Department. The case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Houston Man Ordered to Prison…Again for Second Wire Fraud SchemeRead the Press Release
HOUSTON - Houstonian Nathaniel Chilo, aka Nathaniel O’Neil, 23, now convicted in two separate debt relief scams, has been sentenced to prison again, United States Attorney Kenneth Magidson announced today. Chilo entered a plea of guilty to wire fraud in relation to this case Thursday, Dec. 13, 2012.
Today, U.S. District Judge Lee H. Rosenthal, who accepted the guilty plea, handed Chilo a sentence of 51 months in federal prison to be immediately followed by a term of three years of supervised release.
Chilo operated debt relief businesses in the Houston area under several different names including, but not limited to, Universal Restoration and C & N Recovery. Both Chilo and co-defendant Savannah Rae Williams, 25, also of Houston, have admitted they fraudulently represented that settlements has been arranged for an individual in Georgia, but then used that money for their own benefit.
Chilo was first indicted in a separate scheme perpetrated by him and his father, Jeffery Wayne O’Neil, 55, of Houston. Chilo was arrested in late August 2011 and released on Sept. 14, 2011, pending further criminal proceedings. Among his conditions of release were that he not commit any other criminal offenses nor have a job in credit repair, credit counseling, credit accounts, credit history and credit restoration.
On or about Sept. 16, 2011, a letter was sent to an individual in Georgia that falsely representing a settlement had been reached in the amount of $32,541.56 with one of the person’s creditors. As a result, the individual’s wife then wired monies to cover the settlement, but neither Chilo nor Williams ever paid the creditor.
A second email was sent the next month which indicated a settlement on another account in the amount of $35,409.18. That settlement was also fraudulent, but thinking it was a legitimate, the victim again wired the monies.
Williams and Chilo never arranged the settlements and never paid the creditors, but used the monies for their own benefit. They have both admitted they fraudulently received $67,950.74.
Williams pleaded guilty to her role in the scheme in March 2013 and was also sentenced today to three years of probation and ordered to pay $40,894.47 in restitution.
Chilo and his father were sentenced to respective terms of 70 and 78 months in prison in the other case by U.S. District Judge Ewing Werlein Jr. on July 12, 2013. The sentence imposed upon Chilo today will be served concurrently to the previous term for a total of 70 months in federal prison. Chilo will have to pay a total of $130,176.09 in restitution for both cases.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney John Braddock.
Former Texas Representative “Jim” Solis Gets 47 Months in Prison for Limas Extortion SchemeRead the Press Release
BROWNSVILLE, Texas – Former Texas representative Jose Santiago “Jim” Solis has been ordered to prison following his conviction of aiding and abetting the extortion by former state district judge Abel Corral Limas, United States Attorney Kenneth Magidson announced today. Solis pleaded guilty April 29, 2011.
Today, U.S. District Judge Andrew Hanen, who accepted the guilty plea, handed Solis a total sentence of 47 months in federal prison. At the hearing, additional testimony was presented including the impact suffered by victims as well as Solis’ family and friends. Judge Hanen took into consideration the testimony of witnesses before pronouncing the sentence and stated Solis “betrayed the public trust and violated the oath to uphold the laws.” Solis was further ordered to pay restitution of approximately $119,000 and will serve a term of three years of supervised release following completion of the prison sentence. An additional amount of $250,000 was ordered forfeited as proceeds derived from the offense.
Solis, 47, a life-long resident of Harlingen, has practiced law in south Texas for many years, focusing primarily in personal injury cases. Solis served as a member of the Texas House of Representatives, representing District 38, for seven terms - retiring from the Legislature in 2007.
At the time of his guilty plea, Solis admitted his part in former Judge Limas’ use of the office of judge of the 404th District Court as a criminal enterprise to enrich himself and others, including Solis, through extortion. Limas accepted money and other consideration from attorneys in civil cases pending in his court, including Solis, in return for favorable pre-trial rulings in certain cases, including a case involving a helicopter crash at South Padre Island in February 2008. Solis specifically admitted to paying Limas $8,000 in May 2008, a payment they described as eight “golf balls,” for favorable rulings.
Evidence also showed Solis participated in a series of meetings with attorney Marc Garrett Rosenthal and Limas in the summer of 2008 during which they planned and negotiated the terms of Limas’ employment as an “of counsel” attorney with the firm. During those meetings, Rosenthal promised Limas an advance of at least $100,000 as well as a percentage of attorneys’ fees earned in the helicopter crash case. Limas’ employment arrangements were confirmed in calls on Aug. 28, 2008, between Limas and his wife and son. The intercepted calls indicated Limas was expecting to be “cut in” on 10% of the settlement/judgment of the helicopter crash case pending in his court and the $100,000 advance. On Dec. 31, 2008, Limas received a check for $50,000 payable from the Rosenthal & Watson Law Firm. On Jan. 2, 2009, Limas received a check for $50,000 from Solis.
In October 2009, the helicopter case settled for approximately $14 million and Limas received approximately $85,000 from the Rosenthal & Watson Law Firm approximately two months later.
To date, a total of eight defendants have entered guilty pleas to related violations in the FBI’s four-year public corruption investigation, including Limas, former state district judge of the 404th District Court; local attorney Jose “Joe” Valle; former Cameron County District Attorney’s Office investigator Jaime Munivez; Jose Manuel “Meme” Longoria; Armando Pena and his wife, Karina. Three others - attorneys Ray Roman Marchan, Marc Garrett Rosenthal and former Cameron County District Attorney Armando Villalobos were found guilty of public corruption-related charges involving their association with Limas after separate jury trials. Marchan was previously sentenced to 42 months imprisonment which was vacated upon his death. Rosenthal and Villalobos will be sentenced Sept. 23 and Oct. 15, 2013, respectively.
Solis was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation has been conducted by the FBI with the assistance of the Drug Enforcement Administration and Brownsville Police Department. Southern District of Texas Assistant United States Attorneys (AUSA) Michael Wynne and Oscar Ponce are prosecuting this case. The cases against Villalobos, Rosenthal and Lucio are being prosecuted under the direction of the Western District of Texas by AUSAs Wynne and Greg Surovic.
Former State Department Contract Employee and Husband Plead Guilty to $53 Million FraudRead the Press Release
ALEXANDRIA, Va. – Kathleen D. McGrade, age 64, and Brian C. Collinsworth, age 47, of Stafford, Va., pleaded guilty today to major fraud against the government, conspiracy to launder monetary instruments, and engaging in unlawful monetary transactions.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Harold W. Geisel, Acting Inspector General for the Department of State; and Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Section, Washington, D.C. Field Office, made the announcement after the plea was accepted by United States District Judge Liam O’Grady.
“Defendants McGrade and Collinsworth- now convicted felons-defrauded and stole from the American people, plain and simple,” said U.S. Attorney Neil H. MacBride. “We, along with our law enforcement partners, are committed to ferreting out and prosecuting those that destroy the integrity of the government contracting process.”
"I commend our investigators on their excellent work in this case, and diligence in protecting taxpayer dollars," said Harold W. Geisel, Acting Inspector General, U.S. Department of State and Broadcasting Board of Governors.
“The scope and breadth of this fraud is reprehensible, not just because of the dollars involved, but because of the position of trust that Ms. McGrady held,” said Special Agent In Charge Kelly. “Her actions denied small businesses the opportunity to compete for these government contracts and that is unacceptable. Today's pleas put corrupt business owners like Ms. McGrade and Mr. Collinsworth on notice, that the government will get to the truth no matter how they try to disguise their business transactions. IRS-CI will continue to work with the United States Attorney and our other law enforcement partners to root out these corrupt business owners.”
McGrade and Collinsworth were indicted on April 25, 2013, by a federal grand jury on charges of conspiracy, major fraud against the government, wire fraud, false statements, and engaging in unlawful monetary transactions. Each defendant faces a maximum penalty of 30 years imprisonment when they are sentenced on November 8, 2013.
In a statement of facts filed with the plea agreement, the defendants admitted that McGrade was a contract employee for the Department of State and performed the role of a contract specialist for an office that awarded construction contracts for work done at U.S. embassies worldwide. Collinsworth worked at one of the companies that received contracts. In 2006, the defendants married, but did not tell others at the Department of State. The defendants started a company, the Sterling Royale Group, or SRG, with McGrade serving as the president and Collinsworth the vice-president and project manager.
In late 2007, McGrade caused a State Department contracting officer to sign a contract between the Department of State and SRG, and McGrade failed to disclose her role in SRG, her marriage, or that proper contracting competitive procedures had not been followed. The contract made SRG eligible to receive task orders for work to be done at embassies and McGrade began steering work to the company. She acted as the contract negotiator between the Department of State engineers responsible for getting the jobs done, on the one hand, and Collinsworth, who was acting on behalf of SRG and the subcontractors, on the other. Between 2008 and 2011, McGrade caused Department of State contracting officers to sign 17 task orders awarding work worth almost $53 million. In 2010, the defendants also lied about their marriage to investigators conducting McGrade’s background investigation regarding renewal of her security clearance.
In the summer of 2011, a news article disclosed the defendants’ marriage and the Department of State terminated her employment. The Department of State, however, had paid SRG about $39 million, and after the defendants had paid their subcontractors, they still had millions of dollars. Among other things, they bought houses, a condominium, a yacht, a Lexus automobile, jewelry, and a Steinway piano with the fraudulently obtained money. The defendants have agreed to forfeit all of those items.
This case was investigated by the Department of State, Office of Inspector General, and the Global Illicit Financial Team, a task force led by the Criminal Investigation Section of the Internal Revenue Service. Assistant United States Attorneys Jack Hanly and Mark Lytle are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Former Iowa City Resident Sentenced to 100 Months in Prison for Conspiracy to Distribute Cocaine BaseRead the Press Release
DAVENPORT, IA – On August 1, 2013, Jeffrey Goins, age 26, was sentenced by United States District Judge John A. Jarvey to 100 months in prison for conspiracy to distribute 280 grams or more of cocaine base, announced United States Attorney Nicholas A. Klinefeldt. Goins was also ordered to serve five years of supervised release following the imprisonment, and to pay $100 towards the Crime Victims Fund.
Beginning approximately June 2010 and continuing until about March 2, 2012, Goins conspired with others to distribute cocaine base (“crack cocaine”) in the Iowa City, Iowa, area and other locations. In approximately August 2011, Goins and co-defendant Bryant Smith began distributing drugs together and utilized passenger bus lines to transport drugs from Chicago, Illinois, to Iowa City for resale. On January 4, 2012, police in Davenport, Iowa, intercepted about 90 grams of crack cocaine, 128 grams of powder cocaine, and marijuana secreted in luggage on a bus bound from Chicago to Iowa City. Investigation revealed that the luggage belonged to Javon Daniels, a passenger on the bus, who was transporting the drugs on behalf of Goins and Smith. On February 8, 2013, co-defendant Bryan Smith was sentenced to 140 months in prison to be followed by five years of supervised release. On September 14, 2012, Javon Daniels was sentenced to 40 months in prison to be followed by four years of supervised release for possession with intent to distribute 28 grams or more of crack cocaine.
This case was investigated by the Davenport, Iowa, Police Department, the United States Drug Enforcement Administration, and the Iowa City, Iowa, Police Department, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Former Hospice Nurse Sentenced to One Year in Prison for Tampering with Narcotic Pain MedicationRead the Press Release
A 34-year-old nurse from Anacortes, Washington was sentenced today in U.S. District Court in Seattle to one year in prison and three years of supervised release for tampering with consumer products and acquiring a controlled substance by fraud or misrepresentation, announced U.S. Attorney Jenny A. Durkan. ERIN LINVOG, a former nurse at Fidalgo Care Center & Rosario Assisted Living, pleaded guilty in April 2013. At sentencing U.S. District Judge Richard A. Jones said LINVOG “showed reckless disregard of others’ pain and risk of overdose... The only reason you stopped was you were caught... you violated every single notion of what we expect from a nurse.”
According to the facts admitted in the plea agreement, in June 2010, LINVOG began working at the Rosario Assisted Living Center, an elder care facility in Anacortes, Washington, that offers skilled nursing and hospice care to terminally ill patients. LINVOG became credentialed as a registered nurse in November 2011. Sometime in late 2011, LINVOG began stealing narcotics from the facility for her own use. Using her position and authority as a nurse, she requested and received orders for morphine from pharmacies on behalf of Rosario patients, but then diverted entire bottles of narcotics rather than properly logging them into the assigned medicine carts. Moreover, in multiple instances admitted in the plea agreement, LINVOG removed liquid morphine from medicine bottles for her own use, and replaced the missing morphine with tap water, before returning the tampered bottles back to the facility’s medicine carts, where they could have been, and at times were, administered to patients.
The morphine was intended to alleviate the pain of various elderly patients in end-of-life care. LINVOG’s conduct meant that patients near the end of their life were receiving inadequate amounts of medicine to treat their pain and discomfort, and that medical staff did not have a clear picture of the appropriate dosage – since the morphine on hand was diluted. The conduct created the risk that patients could be overdosed if treated with non-diluted medicine, as well as the risk they would suffer needlessly in their final days. LINVOG’s conduct was discovered by the facility in February 2012, which led to her termination shortly thereafter.
At sentencing, Deborah Kelly, the daughter of one of LINVOG’s patients said, “My mom in her last month of life was suffering tremendously… The last year and a half I have been kicking myself that I trusted (LINVOG) to be a better person than she was.”
In asking for a 30 month sentence prosecutors wrote to the court: “Erin Linvog’s offense conduct is egregious, as she knowingly placed highly vulnerable patients at substantial risk of harm and, in some cases, knowingly allowed patients to needlessly suffer…. For the most part, the patients who received diluted pain medication are now deceased and cannot speak for themselves. Thus, families are left largely to speculate as to the consequences of Ms. Linvog’s actions and to question their role in placing their loved ones in such a vulnerable position or in failing to notice foul play. That is a terrible and an unfair position in which to leave these innocent individuals — sons and daughters who entrusted their ailing parent to trained professionals. The final chapter in their memory of the now-deceased loved ones has been forever tainted by the selfish acts of this defendant.”
The case was investigated by the United States Food and Drug Administration, Office of Criminal Investigations, and the Anacortes Police Department. The case is being prosecuted by Assistant United States Attorneys Steven Masada and Jerrod Patterson.
Former FBI Special Agent and Two<br /> Co-Conspirators Charged with Bribery SchemeRead the Press Release
A former FBI agent and two others have been charged in the Southern District of New York with engaging in a bribery scheme to secure confidential, internal law enforcement documents about a prominent individual in Bangladesh.
Acting Assistant U.S. Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York, and Inspector General Michael E. Horowitz of the Department of Justice made the announcement.
Robert Lustyik, 50, a former FBI special agent in the White Plains Resident Agency, is accused in a criminal complaint of conspiring with his friend, Johannes Thaler, 49, of soliciting cash payments from Thaler’s acquaintance, Rizve Ahmed, 34, aka “Caesar,” in exchange for confidential, internal law enforcement documents and information that Lustyik could access by virtue of his position at the FBI. Ahmed and Thaler were arrested today on the charges in the complaint and will be presented later today before U.S. Magistrate Judge George A. Yanthis in the federal court in White Plains. Lustyik is currently detained in connection with an unrelated indictment in U.S. District Court for the District of Utah, where he will be initially presented on the charges in the complaint.
Lustyik, Thaler, and Ahmed are each charged in a four-count complaint. Count one charges Lustyik, Thaler, and Ahmed with conspiring to bribe a public official. Count two charges Lustyik and Thaler with soliciting and receiving bribes. Count three charges Ahmed with bribing a public official and offering to bribe a public official. Count four charges Lustyik with unlawfully disclosing a Suspicious Activity Report.
If convicted, Lustyik, of Westchester County, faces a maximum sentence of 25 years in prison. Thaler, of Fairfield County, Conn., faces a maximum sentence of 20 years in prison. Ahmed, of Fairfield County, faces a maximum sentence of 20 years in prison.
According to allegations in the complaint unsealed today in the White Plains federal courthouse, from about September 2011 through March 2012, Lustyik, Thaler and Ahmed engaged in a bribery scheme on behalf of Ahmed, a native of Bangladesh who sought confidential law enforcement information pertaining to a prominent citizen of Bangladesh who was affiliated with an opposing political party (Individual 1). Ahmed sought, among other things, to obtain information about Individual 1, to locate Individual 1, and to harm Individual 1 and others associated with Individual 1.As part of the scheme, Lustyik and Thaler exchanged text messages, including messages about how to pressure Ahmed to pay them additional money in exchange for confidential information. For example, in text messages, Lustyik told Thaler, “we need to push [Ahmed] for this meeting and get that 40 gs quick . . . . I will talk us into getting the cash . . . . I will work my magic . . . . We r sooooooo close.” Thaler responded, “I know. It’s all right there in front of us. Pretty soon we’ll be having lunch in our oceanfront restaurant . . . .” As another example, in or about late January 2012, Lustyik, upon learning that Ahmed was considering using a different source to obtain confidential information about Individual 1, texted Thaler, “I want to kill [Ahmed] . . . . I hung my [***] out the window n we got nothing? . . . . Tell [Ahmed], I’ve got [Individual 1’s] number and I’m pissed. . . . I will put a wire on n get [Ahmed and his associates] to admit they want [a Bangladeshi political figure] offed n we sell it to [Individual 1].”
According to the complaint, Lustyik and Thaler accepted at least $1,000 from Ahmed in exchange for confidential FBI information, including a Suspicious Activity Report. The complaint also alleges that Lustyik and Thaler schemed to obtain monthly cash bribes from Ahmed, in increments of tens of thousands of dollars, in exchange for the provision of additional confidential law enforcement information about Individual 1 and for assistance in having criminal charges against a Bangladeshi political figure dismissed.
This case was investigated by the Department of Justice’s Office of Inspector General. The prosecution is being handled by the U.S. Attorney’s Office for the Southern District of New York’s White Plains Division and by the Public Integrity Section of the U.S. Department of Justice’ Criminal Division. Assistant U. S. Attorney Benjamin Allee and Trial Attorney Emily Rae Woods are in charge of the prosecution.
The charges in the complaint are merely accusations, and the defendants are presumed innocent until and unless proven guilty.
Former Erie County Correctional Facility Deputy Sentenced for Violating Civil Rights of InmateRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Josephine Cutolo, 54, of Buffalo, N.Y., who was convicted of deprivation of rights under color of law, was sentenced to one year probation to include six months home detention with electronic monitoring, by U.S. Magistrate Judge Hugh B. Scott.
Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that on August 18, 2012, the defendant, a deputy with the Erie County Sheriff’s Department, was one of several deputies who was present after an altercation involving two inmates. After the altercation was over, and while one of the inmates was in handcuffs, subdued and being escorted by two other deputies, the defendant approached the subdued inmate and sprayed him with O.C. chemical spray, asking how he liked the spray. Cutolo specifically aimed the painful chemical spray a few inches from the victim’s face, resulting in the chemical released spraying the victims face, chin and shoulder area.
The sentencing is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel.Fairbanks Man sentenced to 6 months in prison for tampering with evidenceRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that a Fairbanks resident was sentenced in federal court in Fairbanks, Alaska, for his role in a conspiracy to tamper with evidence regarding a drug case.
Brent Gunnels, a/k/a, “BG,” 32, from Fairbanks, Alaska, was sentenced today by U.S. District Court Chief Judge Ralph R. Beistline to 6 months in prison and 2 years of supervised release. Gunnels had previously pled guilty to an indictment charging him and his co-conspirators with one count of conspiracy to tamper with evidence.
According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, Gunnels was a friend of Donnell Johnson. Johnson was arrested for his involvement with a drug conspiracy in January 2012, and he directed Gunnels and others to break into his home located in North Pole, Alaska and remove several incriminating items. On January 28, 2012, Gunnels and others went to Johnson’s residence in North Pole and removed several items from the residence including a drug ledger, a digital scale, and a firearm. Gunnels and the others broke into the home and removed the items before federal law enforcement agents were able to serve a federal search warrant at the residence.
Johnson and his co-defendants are members of a drug trafficking conspiracy that attempted to conceal their drug trafficking by claiming they were involved in a legitimate business and were “artists,” employees, or promoters of an Anchorage recording label and rap and hip hop performance group. Members of this conspiracy would record rap and hip hop songs, post videos on Youtube.com, and perform local shows in Anchorage and Fairbanks. Much of their music glorified the lifestyle of selling illegal narcotics and committing other crimes. The lavish and extravagant lifestyle portrayed in their music and videos was supported by their sales of illegal narcotics.
There was no evidence that Gunnels was involved in Johnson’s drug trafficking conspiracy other than his removal of items from Johnsons residence in January 2012.
Prior to imposing a sentence, Judge Beistline informed the defendant that drug traffickers were poisoning the community, that he had made a choice to interfere with law enforcement and that he chose to help out those trafficking drugs rather than assist law enforcement.
Gunnels was indicted along with 13 other members of the conspiracy located in Anchorage and Fairbanks. Christopher Anderson was previously sentenced to 14 months in prison on November 2, 2012; DeMarr Moultrie was sentenced to 40 months in prison on May 1, 2013; Jeraelyn Hill was sentenced to 66 months in prison on May 28, 2013; Jerry Wormley was sentenced to 36 months in prison on May 31, 2013 and Rock Phelps II was sentenced to 18 months in prison on June 14, 2013. Donnell Johnson, Joshua Mustovich, Mihla Hall, Antonio Fleming, Dalon Johnson, Tevoris Carter, and Emma Shine, have plead guilty for their roles in connection with the conspiracy and await sentencing. Terrance Fleming has a pending trial scheduled in August 2013.
Ms. Loeffler commended the Federal Bureau of Investigation, the Drug Enforcement Administration, the United States Postal Service, the Internal Revenue Service Criminal Investigation Division, and the Anchorage Police Department for the investigation leading to the successful prosecution of GunnelsDothan Man Sentenced to 90 Months for Securities Fraud SchemeRead the Press Release
Montgomery, Alabama - Montgomery, Alabama - Edward Lincoln Forehand, age 68, of Dothan, Alabama, was sentenced today to 90 months on his convictions for securities fraud, mail fraud, wire fraud, and money laundering, announced the U.S. Attorney’s Office for the Middle District of Alabama and the Alabama Securities Commission (ASC).
Between 2006 and November 2009, Forehand, used the business name “USA Marketing,” to solicit investments from people, mainly in South Alabama and the Florida Panhandle. Forehand told investors that he had a relationship with an individual, Vicky Yeager. Yeager had a business, Elite Marketing (“Elite”), which had agreements with colleges and universities to sell them cookware. Forehand solicited investments in Elite from his victims. He promised the victims extraordinarily high rates of return on their investment in Elite (up to 700%).
Rather than sending all of the investors’ money to Elite, Forehand used large amounts of the money to pay prior investors and to buy property and other items for himself. In particular, during the period from 2006 to November 2009, Forehand received $6.2 million from investors but only sent $1,605,790 to Elite. Meanwhile, Forehand promised to pay out to investors over $19 million.
Forehand also failed to disclose that in August 2009, six checks from Elite to USA Marketing totaling $600,000 bounced, that Elite never made good on the checks, and that from that point forward, Forehand stopped sending any investor money to Elite. Forehand also concealed Yeager’s true identity and the fact that Yeager had two prior criminal convictions for fraudulent conduct.
On November 10, 2009, Yeager died. After Yeager’s death, Forehand paid no further funds to investors, and 87 investors lost approximately $2,991,654 of the monies they had given Forehand to invest in Elite.
“The sentence today vindicates the victims who lost money due to Edward Forehand’s fraud. His 90-month term of imprisonment provides a necessary punishment for his role in orchestrating and carrying out a years-long, multimillion-dollar Ponzi scheme that caused significant losses to well over 100 individuals,” stated Louis V. Franklin, Criminal Chief at the U.S. Attorney’s Office.
Alabama Securities Commission Director Borg said, “We are very pleased with the sentence handed down by the Court today. We believe Judge Thompson sent a clear message to those people who are planning on or thinking about engaging in financial scams that such behavior will not be tolerated. We are proud to have been able to work with the U.S. Attorney for the Middle District of Alabama and the FBI to bring Forehand to justice.”
The case was investigated by Special Agents of the Alabama Securities Commission, the FBI and the Dothan Police Department with special help from the United States Marshal Service. The case was prosecuted by Special Assistant United States Attorneys Steve P. Feaga and Gregory M. Biggs of the Alabama Securities Commission, and Assistant United States Attorneys Jared Morris and Tommie B. Hardwick.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Dominican Man Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Dominican man was sentenced yesterday for illegally re-entering the United States after previously being deported to the Dominican Republic.
Lenny Soto-Mateo, 30, was sentenced by U.S. District Judge Nathaniel M. Gorton to 21 months in prison, followed by three years of supervised release.In 2007, Soto-Mateo was convicted in U.S. District Court of aggravated identity theft and making false statements in application for a United States passport, and was sentenced to 25 months in prison. Following the completion of his sentence, Soto-Mateo was placed into removal proceedings and was deported back to the Dominican Republic. In 2009, Soto-Mateo was encountered by ICE officials in Louisiana. Soto-Mateo was charged in U.S. District Court in Western Louisiana with illegal reentry of a previously deported alien, and was sentenced to 15 months in prison. Following the completion of his sentence, Soto-Mateo was placed into removal proceedings and was deported to the Dominican Republic.
In 2012 immigration officials encountered Soto-Mateo following his arrest by the Boston Police Department. Soto-Mateo’s fingerprints were examined and determined to be a positive match on the two prior deportation warrants. Soto-Mateo was transferred into ICE custody and charged in the District of Massachusetts with illegal reentry.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
District Man Sentenced to 27 Years in Prison for 2011 Slaying in Northwest WashingtonRead the Press Release
-Victim, 19, Was Shot Four Times in an Attempted Robbery-
WASHINGTON – Rashid Caviness-Bey, 20, of Washington, D.C., was sentenced today to 27 years in prison for a murder that took place during an attempted armed robbery in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Caviness-Bey was found guilty in June 2013 by a jury in the Superior Court of the District of Columbia of charges of second-degree murder while armed and carrying a pistol without a license in the slaying of 19-year old Osman Al-Akbar. He was sentenced by the Honorable Lynn Leibovitz. Upon completion of his prison term, Caviness-Bey will be placed on five years of supervised release.
According to the government’s evidence, on Aug. 17, 2011, at about 1:30 a.m., Mr. Al-Akbar bicycled toward his home after visiting his girlfriend’s house. As he was riding home, he talked on his cell phone with his girlfriend. At the same time, Caviness-Bey and two teenagers emerged from Girard Park near the 2600 block of University Place NW. They carried two guns and dressed in a manner to conceal themselves.
Mr. Al-Akbar encountered Caviness-Bey and the two teenagers in the 2600 block of University Place NW, where they tried to rob him. During the encounter, Mr. Al-Akbar was shot three times in the back. After he fell to the street, dying, he was shot a fourth time in the face with a second gun. Mr. Al-Akbar died in the street next to his bicycle and personal belongings, which were scattered around him.
Caviness-Bey and the teenagers fled after the shooting. One of the teenagers and Caviness-Bey fled into a dead-end alley behind an apartment building at the corner of 15th and Fuller Streets NW. Along the way, witnesses saw them discard the clothing they had worn to conceal themselves during the robbery. One of the witnesses also spotted them with a gun. The witness alerted the police to the alley that Caviness-Bey and the teenager ran into. The police found Caviness-Bey and the teenager hiding at the bottom of a basement stairwell. Nearby, the police found the two guns used to kill Mr. Al-Akbar. The police also found the discarded clothing in the alley and in the trash receptacles near the alley.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives of the Criminal Investigations Division, crime scene officers, and the Third Police District of the Metropolitan Police Department, and the U.S. Park Police. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Michael Ortwein (now with the U.S. Attorney’s Office for the Eastern District of Michigan), who secured the indictment in the case; Criminal Investigator Durand Odom; Jelahn Stewart, Michael Hailey, David Foster, Marcia Rinker, Melissa Milam, and Christina Principe, all of the Victim Witness Assistance Unit; Kimberly Smith, William Henderson, and Leif Hickling of the Litigation Technology Unit, Paralegal Specialists Marian Russell and Ethel Noble, and Librarian Lisa Kosow. Finally, he praised the efforts of Assistant U.S. Attorney Shana L. Fulton who tried the case.
13-275Detroit One Collaboration Leads to Indictment of Violent Drug Gang in Northwest DetroitRead the Press Release
The collaboration of local, state, and federal law enforcement under the Detroit One program is beginning to show dividends with the investigation, indictment, and arrests of a violent, armed drug gang located in northwest Detroit, United States Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Daryl McCrary, Acting Special Agent in Charge of the Detroit Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Detroit Police Chief James E. Craig.
The indictment unsealed today charges three brothers, Mohamed, Abed, and Fouad Faraj, with distributing marijuana and prescription pills on the 6800 block of Rutherford Street and the greater Warrendale neighborhood in the city of Detroit. The criminal enterprise led by the Faraj brothers employed numerous teenagers and young men to act as their street level distributors. These young workers regularly had access to firearms supplied by the leaders and used arson as a tactic to create stash houses and to further the enterprise’s narcotics distribution activities. Among those charged today are:
- Mohamed Faraj, 29, of Dearborn Heights, charged with continuing criminal enterprise, conspiracy to possess with intent to distribute controlled substances, possession of firearms in furtherance of narcotics trafficking, and use a telecommunications device in furtherance of narcotics trafficking;
- Abed Faraj, 38, of Detroit, charged with continuing criminal enterprise, conspiracy to possess with intent to distribute controlled substances, and possession of firearms in furtherance of narcotics trafficking;
- Fouad Faraj, 43, of Dearborn Heights, charged with continuing criminal enterprise, conspiracy to possess with intent to distribute controlled substances, and possession of firearms in furtherance of narcotics trafficking;
- Mohammed Abdul Alhakami, 22, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances and possession of firearms in furtherance of narcotics trafficking;
- Ali Al-Hisnawi, 20, of Detroit, charged with conspiracy to possess with intent to distribute controlled substances; and
- Adnan Bazzi, 28, of Dearborn, charged with conspiracy to possess with intent to distribute controlled substances, possession of firearms in furtherance of narcotics trafficking, and felon in possession of a firearm.
“Detroit One is bringing a unified focus to arresting violent offenders in Detroit," McQuade said. "Dismantling violent drug gangs will help restore peace in our neighborhoods."“We know that illegal narcotics and firearms are a major threat to the safety of our citizens and to law enforcement officers,” said Acting ATF Special Agent in Charge Daryl McCrary. “Today’s operations and arrest warrants highlight ATF’s and our law enforcement partners’ effort to remove armed violent drug dealers from our streets. We are committed to reducing violent crime and this case emphasizes a repetitive problem of illegal narcotics traffickers willing to use and carry firearms to protect their drug proceeds,” McCrary added.
“This is the perfect example of law enforcement teamwork,” said Chief James E. Craig. “Working with our local, state, federal law enforcement agencies has and will continue to enhance our crime-fighting efforts in providing a safe environment for visitors and residents of the city of Detroit.”
Detroit One is a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. By working cooperatively, local, state, and federal law enforcement agencies are maximizing their ability to identify and arrest the individuals and groups committing violent crime.
In this case, investigators were able to share information and resources to identify the leaders and key members of this organization, leading to charges against six individuals in federal court. The case was initiated by the Comprehensive Violence Reduction Partnership, consisting of representatives of the Detroit Police Department, Michigan State Police, Michigan Department of Corrections, and ATF, and assisted by the Federal Bureau of Investigation, Homeland Security Investigations, and Internal Revenue Service.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government's burden to prove guilty beyond a reasonable doubt.
Department of Justice Proposes Remedy to Address<br /> Apple’s Price FixingRead the Press Release
The Department of Justice and 33 State Attorneys General today submitted to the court a proposed remedy to address Apple Inc.’s illegal conduct, following the July 10, 2013, U.S. District Court for the Southern District of New York decision finding that Apple conspired to fix the prices of e-books in the United States. The proposed relief is intended to halt Apple’s anticompetitive conduct, restore lost competition and prevent a recurrence of the illegal activities.
“The court found that Apple’s illegal conduct deprived consumers of the benefits of e-book price competition and forced them to pay substantially higher prices,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “Under the department’s proposed order, Apple’s illegal conduct will cease and Apple and its senior executives will be prevented from conspiring to thwart competition in the future.”
The department’s proposal, if approved by the court, will require Apple to terminate its existing agreements with the five major publishers with which it conspired – Hachette Book Group (USA), HarperCollins Publishers L.L.C., Holtzbrinck Publishers LLC, which does business as Macmillan, Penguin Group (USA) Inc. and Simon & Schuster Inc. – and to refrain for five years from entering new e-book distribution contracts which would restrain Apple from competing on price. Under the department’s proposed remedy, Apple will be prohibited from again serving as a conduit of information among the conspiring publishers or from retaliating against publishers for refusing to sell e-books on agency terms. Apple will also be prohibited from entering into agreements with suppliers of e-books, music, movies, television shows or other content that are likely to increase the prices at which Apple’s competitor retailers may sell that content. To reset competition to the conditions that existed before the conspiracy, Apple must also for two years allow other e-book retailers like Amazon and Barnes & Noble to provide links from their e-book apps to their e-bookstores, allowing consumers who purchase and read e-books on their iPads and iPhones easily to compare Apple’s prices with those of its competitors.
Additionally, the Department of Justice is asking the court to appoint an external monitor to ensure that Apple’s internal antitrust compliance policies are sufficient to catch anticompetitive activities before they result in harm to consumers. The monitor, whose salary and expenses will be paid by Apple, will work with an internal antitrust compliance officer who will be hired by and report exclusively to the outside directors comprising Apple’s audit committee. The antitrust compliance officer will be responsible for training Apple’s senior executives and other employees about the antitrust laws and ensuring that Apple abides by the relief ordered by the court.
On April 11, 2012, the department filed a civil antitrust lawsuit in the U.S. District Court for the Southern District of New York against Apple, Hachette, HarperCollins, Macmillan, Penguin and Simon & Schuster, for conspiring to end e-book retailers' freedom to compete on price by taking control of pricing from e-book retailers and substantially increasing the prices that consumers paid for e-books.
At the same time that it filed the lawsuit, the department reached settlements with three of the publishers – Hachette, HarperCollins and Simon & Schuster. Those settlements were approved by the court in September 2012. The department settled with Penguin on Dec. 18, 2012, and with Macmillan on Feb. 8, 2013. The Penguin settlement was approved by the court in May 2013. Final approval of the Macmillan settlement is pending before the court. Under the settlements, each publisher was required to terminate agreements that prevented e-book retailers from lowering the prices at which they sell e-books to consumers and to allow for retail price competition in renegotiated e-book distribution agreements.
The department’s trial against Apple, which was overseen by Judge Denise Cote, began on June 3, 2013. The trial lasted for three weeks, with closing arguments taking place on June 20, 2013. The court issued its opinion that Apple Inc. violated Section 1 of the Sherman Act on July 10, 2013. The court will hold a hearing on remedies on Aug. 9, 2013.Deleon Springs Man Pleads Guilty to Armed Bank RobberyRead the Press Release
Orlando, Florida - Acting United States Attorney A. Lee Bentley, III announces that Robert Gordon Shaw (37, Deleon Springs) pleaded guilty yesterday to one count of armed bank robbery. Shaw faces a maximum penalty of 25 years in federal prison.
According to the plea agreement, on April 19, 2013, Shaw and a separately charged individual named Matthew Anthony Cosimini robbed a Regions Bank in Sanford. They displayed a fake explosive detonation device and passed a note to a bank teller demanding money and indicated that an explosive had been placed inside the bank. During the robbery, Shaw and Cosimini also possessed a semiautomatic pistol with ammunition. After Shaw passed the demand note and displayed the detonation device, the bank teller handed Shaw approximately $14,098 in bank money. After the robbery, Shaw and Cosimini fled in a stolen vehicle and responding officers from the Sanford Police Department pursued them. During the pursuit, Shaw caused damage to both a police vehicle and a civilian's vehicle. Police officers eventually stopped and arrested Shaw and Cosimini one mile from the bank. The officers also recovered the firearm and detonation device from the stolen vehicle. Further investigation revealed that the detonation device was a fake and that there were no explosives inside the bank.
This case was investigated by the Federal Bureau of Investigation with assistance from the Sanford Police Department and the Seminole County Sheriff's Office. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
Defendant Possessing Child Pornography SentencedRead the Press Release
Michael JMoore, United States Attorney for the Middle District of Georgia, announced that Michael Dawes Hall, age 25, a resident of Tifton, Georgia, was sentenced on July 29, 2013 by the Honorable Hugh Lawson in United Sates District Court, Valdosta Division, to sixty-one (61) months imprisonment, to be followed by twenty-five (25) years supervised release.Mr. Hall entered a plea of guilty on July 29, 2013 to Possession of Child Pornography. He admitted to possessing computers containing visual depictions of minors engaging in sexually explicit conduct. A "cyber tip" provided by the National Center for Missing and Exploited Children from an internet service provider associated Hall's e-mail address to uploading images and a video of child exploitation onto an online social networking group. These images involved prepubescent minors and minors under the' age of twelve (12) years and depicted minors engaged in sexual conduct of a sadistic and masochistic nature.
U.S. Attorney Michael Moore said, "Every time Mr. Hall looked at these images and every time he uploaded the pictures and videos, here-victimized these children. My office will use every resource we have to find and prosecute defendants like Mr. Hall. After all, if we are not willing to fight to protect our kids, what is worth fighting for?''
The case was investigated by the Federal Bureau of Investigation (FBI) and was prosecuted by Assistant United States Attorney Robert D. McCullers for the Government.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Defendant Possessing Child Pornography SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Otto G. Pena, age 46, a resident of Valdosta, Georgia and Hialeah, Florida, was sentenced on July 29, 2013 by the Honorable Hugh Lawson in United States District Court, Valdosta Division, to 120 months imprisonment, followed by twenty-five (25) years of supervised release.
Mr. Pena entered a plea of guilty on July 29, 2013 to Possession of Child Pornography. Court records showed that a search conducted on Mr. Pena's residence revealed numerous computers containing images of minors engaged in sexually explicit conduct. Mr. Pena admitted that he was in possession of more than 600 images of child pornography, that the images on the computers had been mailed, shipped or transported in interstate and foreign commerce and that the depictions of the minors engaging in sexually explicit conduct were produced using materials which had been mailed, shipped, or transported by means of interstate and foreign commerce. Evidence was presented at sentencing showing that Mr. Pena had also engaged in a pattern of activity involving sexual abuse and exploitation of a minor.
U.S. Attorney Michael Moore said, "Mr. Pena re-victimized the children in these images every time he looked at the pictures. Possession of this disgusting material is not a victimless crime, and Mr. Pena, or anyone else who exploits children in Middle Georgia, need to know that we will use every resource we have to make sure they go to federal prison."
The case was investigated by the Georgia Bureau of Investigation, the Lowndes County Sheriff's Office, the Southern Judicial Circuit District Attorney's Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and was prosecuted by Assistant United States Attorney Robert D. McCullers for the Government.Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Dallas Man Is Sentenced to 30 Years in Federal Prison and Ordered to Pay Nearly $4 Million in Restitution on Multiple Fraud ConvictionsRead the Press Release
Fraudster Was Found Guilty of Running an Investment Fraud Scheme While Awaiting Sentencing on a Prior Securities Fraud Conviction
DALLAS — Joshua Wayne Bevill, 33, of Dallas, was sentenced yesterday afternoon by U.S. District Judge Jane J. Boyle to a total of 30 years in federal prison and ordered to pay nearly $4 million in restitution for his conviction in January 2011 on one count of securities fraud and for his conviction in April 2013 for crimes he committed while awaiting sentencing on that conviction, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
For the 2011 conviction, Judge Boyle sentenced Bevill to the statutory maximum sentence of five years’ imprisonment. In documents filed when he pleaded guilty, Bevill admitted that between 2005 and 2008, he and various associates raised several million dollars from investors by selling interests in supposed oil and gas development projects. Bevill, however, was simply stealing investors’ money rather than using it to earn profits in the oil and gas business. He pleaded guilty to one count of securities fraud and admitted that he defrauded numerous investors of more than $750,000.
While awaiting sentencing on that case, Bevill perpetrated a similar scheme from August 2010 until February 2011 under the name of Progressive Investment Partners. Bevill contacted potential investors and sold them investments in a supposed oil and gas business. As part of his scheme, Bevill used fictitious references that were set up to provide “glowing” reviews and exemplify the merits of investing with Progressive Investment Partners. Bevill, however, simply stole investors’ money and spent it to pay for his lavish lifestyle. The court ordered his arrest and detention in late February 2011, and he has been in custody since that time.
On April 8, 2013, following a bench trial on those crimes, Bevill was adjudged guilty on one count of mail fraud, two counts of securities fraud and one count of wire fraud, and committing each offense while on release. For these convictions, Judge Boyle sentenced Bevill to 20 years’ imprisonment on each count, plus five additional years under 18 U.S.C. § 3147 for committing the offenses while on bond. Each of the sentences from the 2013 conviction was ordered to run concurrent to each other, and the five-year term from the 2011 conviction was to run consecutive, for a total term of imprisonment of 30 years. In addition, the more than $100,000 remaining in Bevill’s business bank account seized by the FBI was ordered forfeited to the United States.
These cases were prosecuted in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorney’s 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.
The FBI investigated the cases. Assistant U.S. Attorneys J. Nicholas Bunch and Joseph Revesz prosecuted.
Conway Businessman Found Guilty This Week of Filing False Tax ReturnsRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Nashville Field Office, announced that on Tuesday, July 30, 2013, a federal jury found Richard C. Mathews of Conway guilty of five counts of filing false tax returns and one count of interfering with the due administration of justice.
"This verdict sends a message that tax violations are serious crimes against the American public. The IRS is committed to investigate and recommend for prosecution those who provide false statements and corruptly obstruct the administration of our nation's tax laws," said Henry.
After a two day trial, a jury deliberated for two hours before returning guilty verdicts on all six counts charged in a Superseding Indictment filed July 11, 2012. According to the Indictment and testimony at trial, Mathews was self-employed operating a business soliciting members for a $99 joining fee into his system of making money by getting more members to join his online multi-level marketing network known as MMS and Wealth Team International (WTIA). The more people a member solicited to join MMS or WTIA, the more money the members and Mathews could make. Mathews stated on his federal tax returns that he had gross receipts of $22,201 for the five year period from 2004 to 2008, when in fact his bank records showed business deposits of $245,300.42.
Mathews is out on bond and continues to operate his businesses. He faces a statutory maximum of 3 years in the Bureau of Prisons and up to a $100,000 fine on each count. Mathews will be sentenced at a later date to be set by the court.
This case was investigated by Internal Revenue Service - Criminal Investigations. The case was prosecuted by First Assistant United States Attorney Patrick C. Harris and Assistant United States Attorney Jamie Dempsey.
by making false allegations about the actions of the Special Agents and Revenue Officers of the IRS
Conspirator Sentenced for Possession of Stolen U.S. Treasury ChecksRead the Press Release
Michael JMoore, United States Attorney for the Middle District of Georgia, announced that Sherry Lynn Osborne, age 45, a resident of Tifton, Georgia, was sentenced in the U.S. District Court, Valdosta Division, on July 29, 2013 by the Honorable Hugh Lawson to thirty seven (37) months imprisonment. Judge Lawson also ordered Ms. Osborne to pay $735,454.75 in restitution.
Ms. Osborne entered a plea of guilty on February 25, 2013, to conspiracy to Possess Stolen U.S. Treasury Checks, Uttering Forged Securities and Embezzling Public Monies. In her plea, Ms. Osborne admitted to receiving and depositing stolen and fraudulently obtained tax refund checks or fraudulently obtained refund anticipation loan checks into her bank accounts and then withdrawing the proceeds, retaining a portion for herself and providing the rest to the individual who had originally provided her with the checks. Court records showed that Ms. Osborne admitted that she deliberately avoided knowing the specific source and nature of the checks even though she should have known this information. In total, from September to November 2011, Ms. Osborne presented approximately $1,200,000 in stolen and fraudulent tax refund checks and refund anticipation loan checks for deposit into her accounts.
"When Ms. Osborne stole from the Treasury, she stole from us all. My office will continue to use our efforts to enforce the law. This case should remind people of the lesson we were all taught as children cheaters never win," said U.S. Attorney Michael Moore.
The case was investigated by the United States Secret Service and the Tift County Sheriffs Office, and was prosecuted by Assistant United States Attorney Robert D. McCullers for the Government.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Columbus Man Convicted of Gun and Drug CrimesRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
A U.S. District Court jury in Columbus, Ohio convicted Jack A. Morris, 37, of Columbus of gun and drug trafficking crimes. Morris faces a mandatory minimum sentence of 30 years.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Robin Shoemaker, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Columbus Field Division (ATF), and Gahanna Police Chief Dennis Murphy announced the verdict returned today following a trial that began July 29 before U.S. District Judge Gregory L. Frost.Trial testimony showed that Morris and others supplied street level distributors of marijuana, cocaine and oxycodone with firearms and body armor as a way of protecting themselves from potential robberies. Morris also placed firearms in strategic locations throughout his house in order to intimidate potential robbers and protect the narcotics and proceeds kept at the house.
The jury convicted Morris of one count of conspiracy to distribute oxycodone, two gun counts, and nine counts of illegally trafficking marijuana and oxycodone.
Two others indicted with Morris in April 2013, Jeremy S. Baker, 25, of Blacklick, and Judy L. Kindle, 45, of Columbus, pleaded guilty to charges of conspiracy and possession with intent to distribute oxycodone. Christopher Wilcox, 30, of Reynoldsburg, pleaded guilty to supplying firearms including an AK-47 and an AR-15, knowing that the weapons were to be used in the drug trafficking.
Judge Frost will schedule a date for sentencing. Morris has been in custody since his arrest in May 2013.
U.S. Attorney Stewart commended the investigation conducted by ATF and the Gahanna Police officers, and Assistant U.S. Attorney David DeVillers and Special Assistant U.S. Attorney Steve Dunbar with Columbus City Attorney Rick Pfeiffer’s Office, who are representing the United States in the case.
Colonial Heights Man Sentenced for Coercion and Enticement of A Minor and Receipt of Child PornographyRead the Press Release
RICHMOND, Va. – Robert Kropp, 26, of Colonial Heights, Va., was sentenced today for coercion and enticement of a minor under the age of fifteen and receipt of child pornography. Kropp was sentenced to 120months in prison on each of the two counts, to run concurrently, followed by 20 years of supervised release on each count. In addition, Kropp was assessed a fine of $15,000.00.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia and Jeffery C. Mazanec, Special Agent in Charge of the Federal Bureau of Investigation’s Richmond Field Office, made the announcement after sentencing by United States District Judge Henry E. Hudson.
Kropppled guilty on May 7, 2013, to coercion and enticement of a minor under the age of fifteen and receipt of child pornography. According to court documents, in March 2013, Kropp began corresponding by email with an individual he believed to be a prostitute. Kropp initially inquired of the prostitute whether she knew of any minors with whom he could engage in sexual activity. Through these communications, Kropp was informed that the individual with whom he was corresponding knew a thirteen-year-old female.
Also in March 2013, Kropp used his cell phone to send text messages and make telephone calls to engage in sexually explicit conversations with an individual he believed to be a thirteen-year-old female. Kropp discussed specific sex acts that he would like to engage in with her and directed the minor to a website where she could obtain pornography to prepare for the encounter.On March 7, 2013, Kropp arrived at a hotel where he believed he would be meeting the minor. Kropp had $200.00 in his pocket, which he intended to use to pay for the sexual encounter with the minor. Kropp was arrested by law enforcement after entering the hotel and proceeding to the floor where he believed the minor’s room to be.
Kropp admitted to downloading child pornography on his computer. A subsequent forensic search of his computer revealed numerous images of child erotica and child pornography.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Angela Mastandrea-Miller prosecuted the case on behalf of the United States.Cedar Rapids Man Pleads Guilty to Receiving and Possessing Child PornographyRead the Press Release
A man who downloaded and possessed child pornography pled guilty on August 1, 2013, in federal court in Cedar Rapids.
Brian Lynch, age 47, from Cedar Rapids, was convicted of one count of receipt of child pornography and one count of possession of child pornography.
At the plea hearing, Lynch admitted that, between March 2010 and March 2013, he used the Internet to download child pornography. He also admitted that, between November 2004 and April 2013, he possessed child pornography. In a plea agreement, Lynch admitted that he possessed over 350 videos and over 175 images of child pornography, including depictions of prepubescent children.Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Lynch was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Lynch faces a possible maximum sentence of 40 years’ imprisonment, a $500,000 fine, a $200 special assessment, and supervised release for 5 years to life following his imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the DeWitt Police Department, the Cedar Rapids Police Department, and the United States Marshals Service.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 13-29.
Cedar Rapids Man Charged with Federal Child Pornography OffensesRead the Press Release
Jason Smith, age 20, of Cedar Rapids, Iowa, has been indicted on federal child pornography charges. The charges are contained in an Indictment unsealed July 26, 2013, in United States District Court in Cedar Rapids.
The Indictment alleges that, between 2011 and 2013, Smith distributed, received, and possessed child pornography.
If convicted on all charges, Smith faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 50 years’ imprisonment, a $750,000 fine, a $300 special assessment, and at least 5 years and up to life on supervised release following any imprisonment.
Smith appeared for a detention hearing on July 31, 2013, in federal court in Cedar Rapids and was held without bond. Smith’s next appearance for trial is set for September 23, 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 Iowa Division of Criminal Investigation, the Federal Bureau of Investigation, and the Cedar Rapids 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 13-54.
California Man Charged in Multi-Million Dollar Mortgage FraudRead the Press Release
Steven Pitchersky, 64, of Rancho Mirage, California, was charged today by Information with one count of wire fraud, announced United States Attorney Zane David Memeger. Pitchersky, who operated Nationwide Mortgage Concepts, a California mortgage lender, is accused of engaging in a scheme to defraud Ally Bank that caused the bank a loss of approximately $5.3 million.
If convicted the defendant faces a maximum possible sentence of 20 years imprisonment, three years supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Office of the Special Inspector General for the Troubled Asset Relief Program, and the Department of Veterans Affairs Office of Inspector General, and is being prosecuted by Assistant United States Attorney David L. Axelrod.Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Bullhead Man Charged with Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bullhead, South Dakota, man has been indicted by a federal grand jury.
Archambault was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Derek Archambault, a/k/a John Martinez, age 30, was indicted on July 17, 2013, on four counts of Domestic Assault By An Habitual Offender.
The maximum penalty upon conviction is 5 years' custody, a $250,000 fine or both; a period of supervised release of 3 years; and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations and Archambault is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Agency. Special Assistant U.S. Attorney Erin Shanley is prosecuting the case.
1 August 2013
Woman Pleads Guilty to Theft of Government FundsRead the Press Release
ATLANTA - Mary Bridges Clark has pleaded guilty in federal district court to theft of government funds.
“Theft of Social Security funds is, at its core, stealing from the elderly, the disabled, and those with the greatest need,” United States Attorney Sally Quillian Yates. “This defendant stole over $200,000 in Social Security benefits that were intended for her mother for nearly two decades after her mother passed away, even though she knew she was not entitled to them.”According to United States Attorney Yates, the charges and other information presented in court: Clark’s mother received monthly Social Security benefits which were deposited into a joint bank account Clark and her mother shared. Clark’s mother died in April 1993. After her mother’s death, Clark continued to receive her mother’s monthly benefits into the joint account. In total, the United States Treasury, acting on behalf of the Social Security Administration, deposited $219,133.00 into the joint account after her mother’s death. Clark knew this money was intended for her mother, yet she kept the money and used it for her own personal expenses, and attempted to conceal her mother’s death from the Social Security Administration.
Clark, 64, of Loganville, Ga., was charged in a Criminal Information on July 17, 2013, on one count of theft of government funds and pleaded guilty to that count. She could receive a maximum sentence of 10 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Sentencing is scheduled for October 21, 2013, at 3 p.m. before United States District Judge Carnes.
This case is being investigated by Special Agents of the Social Security Administration, Office of Inspector General.
Assistant United States Attorney Glenn D. Baker and Special Assistant United States Attorney Diane C. Schulman are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Willimantic Man Indicted for Escaping from Halfway HouseRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that a federal grand jury sitting in Hartford returned an indictment today charging SAMUEL VASQUEZ, 26, formerly of Willimantic, with escape from the custody of the Attorney General.
The indictment alleges that, on July 12, 2013, VASQUEZ escaped from custody at Watkinson House Residential Reentry Center in Hartford.
VASQUEZ had been confined to Watkinson House RRC to complete his term of incarceration after being convicted in 2011 in U.S. District Court of unlawful dealing in firearms.
If convicted, VASQUEZ faces a maximum term of imprisonment of five years and a fine of up to $250,000.
VASQUEZ was arrested in Willimantic on July 25, 2013 and is currently detained.
Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the United States Marshals Service and is being prosecuted by Assistant United States Attorney Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Westport Woman Sentenced to Prison for Embezzling More Than $1.8 Million from Foundations, EmployerRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that SOOZI FOLSOM, 55, of Westport, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 46 months of imprisonment, followed by five years of supervised release, for embezzling more than $1.3 million from three charitable foundations, and approximately $500,000 from her employer.
According to court documents and statements made in court, FOLSOM worked as the financial manager for a Westport-based accounting and law firm that had been retained by three charitable foundations. From approximately September 2008 to November 2011, she generated at least 124 fraudulent checks drawn on the bank accounts of the foundations and made payable to “Groundhog, LLC,” an entity she controlled. FOLSOM forged the signature on the fraudulent checks, signing the name of an individual with signatory authority on the foundations’ bank accounts, and then converted the monies to her own personal use. FOLSOM covered up the fraud by manipulating transactions in the accounting software systems that handled the foundations’ accounting and bookkeeping. Through this scheme, FOLSOM stole more than $1.3 million from bank accounts belonging to the three charitable foundations.
The investigation also revealed that FOLSOM had embezzled approximately $500,000 from her employer.
Judge Bryant ordered FOLSOM to pay restitution in the total amount of $1,836,973.11.
On September 17, 2012, FOLSOM waived her right to indictment and pleaded guilty to one count of bank fraud. She has been detained since that date.
This matter was investigated by the United States Secret Service and the Westport Police Department. The case was prosecuted by Assistant United States Attorney Susan Wines.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Washington Park Man Pleads Guilty to Firearm OffenseRead the Press Release
On July 31, 2013, Terrell A. Rey, a twenty-eight year old Washington Park, IL, man pled guilty in United States Federal District Court, in East St. Louis, IL, to unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Rey is scheduled for sentencing on November 8, 2013, at which time he faces a maximum sentence of 10 years in prison, a fine of up to $250,000, not more than 3 years supervised release, and a mandatory special assessment of $100. Rey also agreed to forfeit the firearm.
Facts brought out in open court were that on October 28, 2012, police officers responded to Rey’s home regarding a reported incident. The officers announced themselves and encountered Rey just inside the front door of residence, at which point they observed a firearm in his back pants pocket. Rey was taken into police custody, interviewed and read his Miranda rights. He admitted to possessing a firearm, knowing he was a previously convicted felon.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Washington Park Police Department, and is assigned to Special Assistant United States Attorney Neal C. Hong.
Victims of Largest Fraud Case Prosecuted in Southern District of Georgia Receive over $27 Million in RestitutionRead the Press Release
Assets of Defendants convicted in U.S. v. Bradley also used to satisfy $39.5 million forfeiture order and approximately $15 million in fines
SAVANNAH, GA – United States Attorney Edward J. Tarver announced today the payment of over $27 million in restitution to the victims of the largest fraud case ever prosecuted in the Southern District of Georgia, United States v. Martin J. Bradley III, et al., Case No. 405-059 (S.D. Ga.).
The Bradley case involved the dismantling of a criminal enterprise dealing in blood derivative prescription drugs obtained by fraud and through the black market, then resold through Bio-Med Plus (Bio-Med), then the largest privately held secondary wholesaler of blood derivatives in the country. Martin Bradley III and Martin Bradley, Jr. were the leaders of the corrupt enterprise who orchestrated fraud schemes from Georgia to Florida to California, Puerto Rico, the Bahamas, and elsewhere, with shell companies and offshore accounts used to perpetrate and conceal the schemes. After a lengthy investigation, a grand jury sitting in Savannah returned a 288-Count RICO indictment alleging a dozen different schemes to defraud Medicare, Medicaid programs, drugs manufacturers and others of tens-of-millions of dollars worth of prescription drugs essential to the lives of cancer patients and those suffering from AIDS, hemophilia and other illnesses. After a six-week trial held in Savannah, the jury convicted the Bradleys and Bio-Med of racketeering, money laundering and related charges. Bio-Med was forfeited to the Government and the Bradleys received stiff prison sentences, 25 years for Bradley III and 15 years for Bradley, Jr. The Court also entered a restitution order of over $27.8 million; a forfeiture judgment of $39.5 million; and fines totaling over $30 million against the Bradleys and Bio-Med.
A federal receiver was appointed to liquidate the assets of the Bradleys after their convictions. More than $60 million in assets were liquidated, including jet planes, automobile collections, yachts, vacation homes and office buildings. As part of the liquidation, the assets of Bio-Med were also sold.
After the Defendants’ direct appeal rights were exhausted, the Government moved the Court to direct that restitution be made to all victims of the Bradley case. As a result, the Clerk of Court for the Southern District of Georgia this week forwarded United States Treasury checks in the following amounts to the following victims: $2,738,373.50 to Medicare; $10,117,601.03 to Florida Medicaid; $10,419,801.96 to the Genetically Handicapped Persons Program; $2,260,514.01 to Medi-Cal; and, $353,338.52 to Blue Shield of California. An additional $1,907,975.53 will be provided to the SCEET. In addition to the payments of restitution, proceeds from the liquidation of the Bradleys’ assets have been used to satisfy the $39.5 million forfeiture judgment and approximately $15 million of the fines imposed.
United States Attorney Edward Tarver stated, “Restitution payments made this week to the victims of the Bradley case represent the largest payment of restitution in the history of the Southern District of Georgia. This is the culmination of an enormous effort by agents and prosecutors to put an end to a corrupt enterprise that sold prescription drugs with fabricated pedigrees and unknown histories to hospitals, pharmacies and doctors nationwide. No matter how complex the scheme, our mission is to investigate and prosecute criminal enterprises intent upon stealing from the taxpayers of the United States. Let this case serve as notice to any would-be fraudster that the end of the road not only involves a lengthy prison sentence but also the return of your ill-gotten gains.”
The investigation of the Bradley case was led by FDA-OIG Special Agent Pamela Chambers and IRS-CI Special Agent Michael Palmer. Agents with ICE Homeland Security Investigations and the Florida Medicaid Fraud Control Unit also assisted with the investigation. Assistant United States Attorneys James D. Durham, Jeffrey J. Buerstatte, Frederick W. Kramer III, Joseph D. Newman and R. Brian Tanner prosecuted the case on behalf of the United States.
US Attorney's Office Exceeds $70,000,000 in Recoveries from Affirmative LitigationRead the Press Release
BUFFALO – U.S. Attorney William J. Hochul, Jr. announced today that the U.S. Attorney's Office collected $71,086,677 in the past twelve months, with all such monies coming solely from affirmative civil litigation. This amount – one of the highest ever obtained by the Office – does not include financial recoveries obtained by the Office using criminal, forfeiture or other enforcement tools, such as the more than $11 million obtained this week from John Gizzi, a defendant convicted of criminal tax fraud.
“While the public well knows of the Office’s ability to prosecute those who hurt others, cases brought by this Office’s ACE Unit are other ways in which we ensure the American public is protected against fraud and abuse,” said U.S. Attorney Hochul.
As part of its statutory responsibilities, the United States Attorney’s Office enforces federal criminal laws, including terrorism, environmental, narcotics, fraud, and more. In addition, the Office defends in court a wide number of federal agencies, such as the Veteran’s Administration and Post Office, when such agencies are sued by others. A sometimes lesser known power of the Office includes the ability to sue in court those who commit fraud against some of the U.S. Government’s programs, such as health care, procurement, and others. This is known as Affirmative Civil Litigation, and is handled by the Office’s Affirmative Civil Enforcement Unit, or ACE Unit.
As examples of cases which were successfully brought by the Office’s ACE Unit over the past twelve months, earlier this month, the Office announced a more than $34,000,000 settlement with 55 hospitals located throughout 21 states. These health care facilities submitted false claims to Medicare for a certain procedure known as kyphoplasty. Instead of billing the U.S. Government for what should have been the minimally-invasive, out-patient Kyphoplasty procedure, the hospitals submitted to and collected from the Government payments from what appeared to be multi-day in-patient stays in the facilities.
In March 2013, the U.S. Attorney's Office used its affirmative litigation power to obtain a settlement of $33,500,000 from ISTA Pharmaceuticals. This case involved ISTA misbranding the drug Xibrom so as to increase sales nationwide.
The ACE Unit’s accounting year ended July 31, which was the reason why the total figure of $71 million was released today. U.S. Attorney Hochul concluded by noting that while the $71 million recovery is itself significant, the Office also participated in a recent recovery of $335,000,000, which was part of the countrywide litigation conducted by the WDNY and other United States Attorney’s Offices.
The ACE Unit, which is supervised by Assistant U.S. Attorney Mary Pat Fleming, includes Assistant U.S. Attorney Gretchen Wylegala, Investigator Margaret McFarland, Auditor Theresa Tetlow, and Paralegal Jessica Rogers.
Two from Northeast Ohio Convicted in $8 Million Tax FraudRead the Press Release
Two self-proclaimed “citizens of the world” from Northeast Ohio were found guilty of conspiring to defraud the Internal Revenue Service out of more than $8 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
A jury found Don P. Gooch and Gerard F. Scott guilty of five counts, including one count of conspiracy and two counts each of making false claims, following a three-day trial. U.S. District Judge Donald Nugent is scheduled to sentence the men on October 24th. According to court records Don P. Gooch, 64, resides in East Cleveland, where Gerard F. Scott, 38, had a last known address.
In early 2011, Scott obtained a tax identification number for a purported trust (the Gerard Frank Scott Trust) and filed false Forms 1099-INT with the IRS stating that the trust had paid millions of dollars of interest income to Gooch, a woman identified at trial as Scott’s wife, and two other trusts purportedly set up by Scott and Gooch, from which a total of $17,000,000 of taxes had purportedly been withheld.
Based on those false 1099 forms, the conspirators caused false income tax returns to be filed for Gooch and Scott’s wife, and the two other trusts claiming false income tax refunds totaling approximately $8,033,930, according to court documents.
The conspirators initially succeeded in having refunds of approximately $261,000 deposited into a new bank account opened by Scott’s wife and $3.7 million deposited into a new bank account opened by Gooch as a trust account in the name Nhondi Eden Holdings. From those two accounts, over $2.5 million was transferred into a new bank account opened by Scott in the name Private Equity Investment Trust. Over the next few weeks after receiving the refunds, approximately $60,000 in currency was withdrawn from Scott’s wife’s account, while Scott, at times accompanied or assisted by his wife or Gooch, purchased and attempted to purchase a number of expensive or luxury items. The items included approximately $100,000 worth of gold and silver coins purchased jointly by Scott and his wife, a $93,000 Range Rover purchased in the nominee name of a purported ministry known as the Light of Peace Society, and a $164,000 Porsche and a $487,000 home in Aurora that Scott attempted to purchase in the nominee name, according to court documents.
This case is being prosecuted by Assistant United States Attorneys John M. Siegel and Justin J. Roberts following an investigation by the Internal Revenue Service – Criminal Investigation.
Three Somali Pirates Sentenced to Life-In-Prison for Murder of Four Americans Aboard SV QuestRead the Press Release
NORFOLK, Va. – Somali nationals Ahmed Muse Salad, a/k/a “Afmagalo,” 25, Abukar Osman Beyle, 20, and Shani Nurani Shiekh Abrar, 29, who were previously found guilty, by jury, of all 26 counts charged, to include: piracy, conspiracy to commit kidnapping, hostage taking resulting in death, kidnapping resulting in death, and multiple firearms offenses, were sentenced today by a federal jury. The three defendants were sentenced to life-in-prison for their roles in the February 22, 2011, murder of four Americans aboard the sailing vessel Quest. The victims included: Scott Underwood Adam, Jean Savage Adam, Phyllis Patricia Macay, and Robert Campbell Riggle.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, George Venizelos, Assistant Director in Charge (ADIC) of the FBI’s New York Field Office; Royce E. Curtin, Special Agent in Charge (SAC) of the FBI’s Norfolk Field Office, and Michael Monroe, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS), made the announcement after the sentence was accepted by Chief United States District Court Judge Rebecca Beach Smith.
“Four Americans were taken hostage, terrorized and then murdered. Life in prison is reserved for those who commit heinous crimes – and the jury today decided the execution of four innocent Americans on the high seas meets that high bar,” said United States Attorney Neil H. MacBride. “Scott Adam, Jean Adam, Phyllis Macay, and Robert Riggle lost their lives and their families lost their loved ones. Nothing can make this right; nothing can make their families whole again – but we hope today’s verdict and sentences will bring some closure to their nightmare that began two years ago on the Indian Ocean.”
“This case exemplifies the ongoing, outstanding cooperation between federal law enforcement and federal prosecutors,” said Norfolk SAC Royce Curtin. “Today’s sentencings should send a clear message to anyone committing acts of criminal violence against American citizens at sea that they will be prosecuted to the fullest extent of the law.”
Assistant Director-in-Charge Venizelos stated, “pirates armed with AK-47s and rocket-propelled grenades took four innocent Americans hostage aboard their own vessel. When negotiations reached an impasse, one pirate launched a grenade at a nearby U.S. Navy ship while others murdered four Americans aboard the Quest. Today’s life sentences provide a vigorous deterrent for armed bandits roaming our seas. The FBI's commitment to stopping this scourge of violence is unwavering.”
The defendants were previously indicted on July 8, 2011, by a federal grand jury on 26 counts, which included conspiracy to commit hostage taking, conspiracy to commit kidnapping, kidnapping resulting in death, conspiracy to commit violence against maritime navigation resulting in death, piracy, and firearms offenses. The defendants were convicted on all 26 counts on July 8, 2013. According to court records and evidence at trial, Salad, Beyle, Abrar and others—armed with firearms and a rocket-propelled grenade (RPG)—boarded the Quest while the four Americans slept on February 18, 2011. They gained control of the vessel and took the four American citizens as hostages. Their plan was to take the hostages to Somalia, where they and their additional co-conspirators in Somalia could commence ransom negotiations. While they sailed toward Somalia, the three defendants and their co-conspirators were taking turns standing armed guard over the hostages; at the same time, United States Navy ships headed towards the Quest to aid the hostages and prevent the Quest from proceeding to Somalia.
Beginning on February 19, 2011, communications had been established and the United States Navy and the FBI began negotiating with the pirates to secure the safe release of the hostages. On February 21, 2011, two co-conspirators representing the pirates onboard the Quest, were transferred to the USS Sterett to negotiate. The negotiations reached an impasse when the co-conspirators were told that they were not going to be allowed to take the hostages ashore in Somalia. The decision was made to detain the co-conspirators after they refused to release the hostages and threatened to kill them if they were not allowed to return to Somalia.
Testimony revealed that Abrar fired a shot over the head of Scott Adam and instructed Adam to tell the Navy that if the military came any closer, the conspirators would kill the hostages.
On February 22, 2011, without provocation and before the hostages could be rescued by members of the military, a co-conspirator fired an RPG in the general direction of the USS Sterett. Witnesses testified that sustained firing came from the Quest and that glass could be seen breaking on the starboard side of the Quest. Witnesses also testified that Salad, Beyle, and Abrar were the shooters and responsible for the deaths of Scott Adam, Jean Adam, Phyllis Macay, and Robert Riggle. After the gun fire died down, the Navy dispatched SEALS to the Quest. The pirates aboard the Quest began surrendering and some were seen throwing AK-47 rifles into the water.
This case was investigated by the FBI and the Naval Criminal Investigative Service. Assistant United States Attorneys Joseph DePadilla, Brian J. Samuels, and Benjamin L. Hatch prosecuted the case on behalf of the United States. A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae.