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1 August 2013
Three Ordered into Custody on Charges of Selling Drugs in School Zone and Other FeloniesRead the Press Release
LAREDO, Texas – A 16-count indictment has been returned against three Laredo men detailing firearms and multiple methamphetamine trafficking charges, some allegedly occurring within school zones, United States Attorney Kenneth Magidson announced today.
The indictment alleges that from on or about May 24, 2013, to June 28, 2013, Luis Macias-Molinas, 31, and Ricardo Rosas Jr., 26, did knowingly conspire with each other to possess with intent to distribute more than 500 grams of a mixture containing methamphetamine. Also named in the indictment but not charged in the conspiracy is Manuel Aguilar, aka Chino, 24.
The indictment was returned July 23, 2013, and unsealed upon Aguilar’s arrest last Friday. He made his initial appearance before U.S. Magistrate Judge Guillermo R. Garcia Monday, July 29, at which time he was ordered into custody pending a detention hearing to be held this morning. At the hearing today, additional information was provided including Aguilar’s prior criminal record, after which Judge Garcia ordered him to remain in custody pending further criminal proceedings.
Macias-Molinas and Rosas have been in custody on related charges. Rosas also appeared today, at which time he was also ordered to remain in custody. Macias-Molinas waived his appearance and will remain in custody.
Two counts of the indictment include allegations that on or about June 28, 2013, Macias-Molinas and Rojas possessed with intent to distribute 50 grams and another 500 grams and more of a mixture containing methamphetamine. The charges also include allegations that Macias-Molinas possessed with the intent to distribute 50 grams of methamphetamine on June 25, 2013.
These convictions carry varying terms of possible imprisonment, ranging from five years up to life in federal prison.
Moreover, on or about June 14, 2013, Macias-Molinas and Rojas did knowingly distribute 50 grams of methamphetamine within 1,000 feet of Mary Help of Christian School, a private school, according to the allegations. On two additional occasions, Macias-Molinas allegedly distributed methamphetamine in a school zone – once within 1000 feet of Clark Elementary School, a public elementary school, and another again near Mary Help of Christian School.
For the conspiracy charge, Macias-Molinas and Rosas face up to life in prison, if convicted. For possessing with the intent to distribute methamphetamine within a school zone, Macias will face a minimum of 10 years and up to life in prison for each of the three counts, while Rosas will serve a minimum of five and up to 80 years in federal prison, upon conviction.
On or about June 28, 2013, according to the indictment, Macias-Molinas also knowingly possessed in and affecting commerce, six Bushmaster .223 caliber rifles and a Smith and Wesson .357 caliber revolver. As a convicted felon, Macias-Molinas is prohibited by federal law of possessing a firearm. If convicted, he faces up to 10 years in prison for each of the seven firearms counts as charged in the indictment.
On that same date, Aguilar allegedly possessed a Taurus .380 caliber Automatic Colt Pistol. As a convicted felon, he is also prohibited from doing so and will also face up to 10 years in federal prison upon conviction. The indictment further charges Aguilar with one count of possessing with intent to distribute five grams or less of cocaine for which he faces up to 20 years and a possible $1 million fine, upon conviction.
The case is being investigated by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Laredo Police Department. Assistant United States Attorneys Sanjeev Bhasker and Homero Ramirez are prosecuting the case.
A defendant is presumed innocent unless convicted through due process of law.St. Louis Man Pleads Guilty to Cocaine OffenseRead the Press Release
Michael J.W. Bryant, 41, of St. Louis, Missouri, pled guilty on August 1, 2013, to Unlawful Possession with the Intent to Distribute Cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Bryant had been indicted by a federal grand jury sitting in East St. Louis on June 18. He is currently scheduled to be sentenced on November 8, 2013, at which time he faces a possible penalty of twenty (20) years in prison, a $1,000,000 fine, at least three (3) years of supervised release, and a $100 special assessment.
According to the Stipulation of Facts filed with the Court at the time of the plea, on May 30, 2012, the Illinois State Police conducted a traffic stop of a vehicle being driven by Bryant. As the Trooper approached the stopped car, he smelled the odor of marijuana coming from it. Bryant admitted that he had smoked marijuana approximately thirty minutes prior to the traffic stop. The Trooper then searched the vehicle on probable cause and found a small quantity of marijuana. Bryant was arrested and his vehicle was towed. A subsequent search of the vehicle resulted in the seizure of 499.8 grams of cocaine.
Evidence for this indictment was gathered during an investigation conducted by the Drug Enforcement Administration (DEA) and the Illinois State Police. This case has been assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Spokane Valley Man Sentenced to Twelve Years in Federal Prison for Possessing Child PornographyRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Christopher Michael Ebner, age 38, of Spokane Valley, Washington, was sentenced today after having previously pleaded guilty on March 19, 2013 to possessing child pornography. Chief United States District Court Judge Rosanna Malouf Peterson sentenced Ebner to a twelve year term of imprisonment, to be followed by a life term of court supervision after he is released from Federal prison. In addition, Ebner was ordered to forfeit the computer he used to possess the child pornography images.
According to information disclosed during the court proceedings, in January of 2012, a Spokane Police Internet undercover investigation discovered that Ebner was sharing images of child pornography with other individuals, via the Internet, using a peer to peer file sharing program. On January 26, 2012, law enforcement officers executed a search warrant at Ebner's residence in Spokane Valley. The officers discovered Ebner had downloaded well in excess of 400 images and 1,000 videos of child pornography onto his computer, which included images of minors under the age of twelve and sadistic and masochist images. Ebner's criminal history includes prior Washington State convictions in 2004 for Third Degree Rape of a Child and Possession of Depictions of a Minor Engaged in Sexually Explicit Conduct.
Michael C. Ormsby stated, "The United States Attorney's Office in the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes. Prosecuting these types of crimes is particularly important because of the tender age of the innocent victims."
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood (PSC) Initiative has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue child victims;
- Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted the FBI and the Spokane Police Department. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
CR-12-0126-RMP
Shellsburg Tax Return Preparer and Sports Official Sentenced to Prison for Preparing and Filing Fraudulent Tax ReturnsRead the Press Release
A self-employed tax preparer and sports official for local athletic events who prepared and filed fraudulent federal tax returns was sentenced today to over a year in federal prison.
Keith Rath, 52, from Shellsburg, Iowa, received the prison term after a May 1, 2013, guilty plea to one count of aiding and assisting the preparation and filing of a false and fraudulent tax return.
In a plea agreement, Rath, who owned and operated a tax return preparation business, as well as a sports officiating business, in Shellsburg, admitted he prepared and filed a false tax return on behalf of a client, fraudulently increasing the amount of the client’s tax return. Rath also admitted he arranged to have the fraudulent portion of the client’s tax return deposited directly into Rath’s bank account. Rath admitted he did this without the client’s knowledge. Finally, Rath admitted he filed multiple other similarly false tax returns between 2008 and 2010.
“Knowingly falsifying documents that are filed with the IRS is a crime,” said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. “Tax return preparers have a duty to prepare returns that comply with the law and are accurate.”
Rath was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Rath was sentenced to twenty-one months’ imprisonment to be followed by one year of supervised release. A special assessment of $100 was imposed and he was ordered to make $52,418 in restitution. There is no parole in the federal system.
Rath was released on conditions previously set by the United States District Court and is to surrender to the United States Marshal on August 22, 2013.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Internal Revenue Service Criminal Investigation Division.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-12.
Serial Bank Robber Pleads GuiltyRead the Press Release
Tampa, Florida - Acting United States Attorney A. Lee Bentley, III announces that Marcus Dontell Lloyd (35, Port Charlotte) pleaded guilty today to one count of conspiracy to commit bank robbery, and one count of bank robbery. Lloyd faces a maximum penalty of five years in federal prison for the conspiracy count, and up to 20 years in federal prison for the bank robbery offense.
According to the plea agreement, Lloyd, aided and abetted by a separately charged woman named Kaylee Sanchez, committed a series of bank robberies in the Middle District of Florida between July 26, 2012, and August 21 of 2012. While robbing the banks, Lloyd used helmets, hats, sunglasses, and on at least one occasion, a wig, to disguise his appearance. Lloyd did not display or indicate that he had a weapon while committing the robberies, but would jump or climb over the teller counter and literally grab cash from the teller drawers. Sanchez acted as his getaway driver.
Lloyd's bank robberies included a TD Bank in Apollo Beach on July 27; a Bank of America (BOA) in Lakeland on July 27; a BB&T Bank in New Port Richey on July 31; a BOA in Ormond Beach on August 2; and a BOA in Belleview on August 13, 2012. On August 21, 2012, Lloyd and Sanchez were arrested following a car and foot chase, after Lloyd had robbed a Bank of America bank in Boynton Beach. Lloyd dropped a bag with most of the bank money while running away from police officers. In total, Lloyd’s robberies totaled more than $91,000.
The case was investigated by the Federal Bureau of Investigation, the Hillsborough County Sheriff’s Office, and the Pasco County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Mark E. Bini.
Sentences for July 26 - 29, 2013Read the Press Release
Kenneth Henningson, 63, of Lyman, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 29, 2013, for possession of child pornography. Henningson was arrested in Lyman, Wyoming. He received 24 months imprisonment, to be followed by ten years of supervised release and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation, the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Benjamin Lloyd Croley, 34, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 29, 2013, on one count of conspiracy to possess with intent to distribute, and to distributing between 500 grams and 1.5 kilograms of a mixture or substance containing a detectable amount of methamphetamine and one count of possession with intent to distribute methamphetamine and aiding and abetting. Croley was arrested in Casper, Wyoming. He received 121 months imprisonment, to be followed by five years of supervised release and was ordered to pay a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Sigifredo Molina Varela, 41, and Jacqueline Garcia, both of Gillette, Wyoming, were sentenced by Federal District Court Judge Alan B. Johnson on July 26, 2013, on one count of conspiracy to possess with intent to distribute 6.9 kilograms of methamphetamine and one count of possession of a firearm in furtherance of a drug felony. Both defendants were arrested in Gillette, Wyoming. Varela and Garcia each received 180 months of imprisonment, to be followed by five years of supervised release and were ordered to pay an $800.00 fine and a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Second Bloomington Resident Sentenced to Federal Prison for Mortgage Fraud ScamRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 40-year-old Bloomington man was sentenced for his role in defrauding financial institutions and homeowners under the guise of a program to rescue homes from foreclosure. On July 31, 2013, United States District Court Judge John R. Tunheim sentenced Richard Scott Spady to 24 months in federal prison and two years of supervised release on one count of conspiracy to commit wire and mail fraud and one count of filing a false income tax return. On April 4, 2012, Spady was charged in a superseding indictment, and he pleaded guilty on September 5, 2012.
On April 22, 2013, Spady’s co-defendant, Michele Denise Sengstock, age 50, also of Bloomington, was sentenced to 14 months in federal prison on one count of wire fraud. Spady and Sengstock were ordered to pay $1,127,129.31 in restitution.
In his plea agreement, Spady admitted operating his scheme between 2005 and 2007. According to the charges in the case, Spady operated a company called Unified Home Solutions, or UHS, which identified homeowners who were facing mortgage foreclosure or already in foreclosure proceedings. UHS then found third party investors to purchase the homes, planning to sell them back to the original homeowners within one to two years. In the meantime, according to the Indictment in the case, the distressed homeowners could live in their homes.
Though in foreclosure, because they could not make mortgage payments, the homeowners still had some equity in their homes. When the properties were sold, checks were issued to the original homeowners for their equity. The homeowners then signed over the equity checks and the proceeds were used to pay expenses and divided among the investors, UHS, and others. In some cases, equity from one sale was used to purchase other distressed properties.
In his guilty plea, Spady admitted that false and mortgage loan applications and loan closing documents were prepared and that lenders were not told about the distribution of equity from the sales, including rolling one homeowner’s equity into the purchase of a subsequent home for an investor. According to the charges in the case, fewer than 10 percent of the homeowners who used UHS were able to retain their homes, and all the homeowners lost their equity in the process.
Spady also admitted that for the tax years 2006 and 2007, he filed federal income tax returns that failed to report over $100,000 in income, resulting in an underpayment of taxes of more than $30,000.
In her plea agreement, Sengstock admitted assisting in the fraudulent operations of UHS by preparing false mortgage loan applications and closing documents.
This case was the result of an investigation by the U.S. Postal Inspection Service and the Internal Revenue Service-Criminal Investigations. It was prosecuted by Assistant U.S. Attorney Robert M. Lewis.
The U.S. Attorney’s Office wants to remind people to protect themselves from mortgage fraud. For more information, visit http://www.stopfraud.gov/protect-mortgage.html.
This law enforcement action is in part sponsored by the interagency Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. It includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and, with state and local partners, investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.Rudy Gumataotao Palomo Sentenced for Felon in Possession of A Firearm and AmmunitionRead the Press Release
United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced today that defendant RUDY GUMATAOTAO PALOMO was sentenced by Chief Judge Frances Tydingco-Gatewood in the United States District Court, to forty six (46) months imprisonment for the offense of Felon in Possession of a Firearm, and forty six (46) months imprisonment for the offense of Felon in Possession of Ammunition, both terms to run concurrently. After defendant serves his term of imprisonment, he will be placed on supervised release for three (3) years for each count, to run concurrently, and is required to pay a $200 special assessment fee, and attend a substance abuse program. His jail term is to be served at the Bureau of Prisons facility in
Sheridan, Oregon.On July 29, 2012, defendant RUDY GUMATATAO PALOMO was in possession of a 30.30 Marvin Lever Action Rifle which contained a chambered round of ammunition. PALOMO then pointed the firearm at a relative. The relative immediately called police. Guam Police Officers pulled over PALOMO in the village of Yigo and discovered the firearm and ammunition underneath his seat. Because PALOMO has prior felony convictions in the Superior Court of Guam, he is prohibited from carrying a firearm or ammunition.
U.S. Attorney Limtiaco states “Felons are absolutely prohibited from possessing firearms or ammunition. It is important to protect innocent civilians and law enforcement officers from armed convicts, and felons who possess guns or ammunition must be aware that they will face aggressive prosecution and will receive long prison sentences.”
U.S. Attorney Limtiaco noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood (PSN) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in drug distribution, gang involvement and violent crime.
U.S. Attorney Limtiaco commends the investigative efforts of the Guam Police Department and Task Force Officer Katrina Alconaba with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Raleigh County Pill Addict Who Illegally Possessed A .45 Caliber Pistol Sentenced to Federal PrisonRead the Press Release
BECKLEY, W.Va. – A Raleigh County man who admitted to having an addiction to the powerful prescription painkiller oxycodone was sentenced today to one year and nine months in federal prison for illegal possession of a firearm, announced United States Attorney Booth Goodwin. James David Morris, 34, of Eccles, W.Va., previously pleaded guilty in April to being an unlawful drug user in possession of a firearm. On March 28, 2012, Morris possessed a .45 caliber pistol near Harper, Raleigh County. Morris told police that at the time he possessed the firearm, he was an unlawful user of and addicted to oxycodone. Police also recovered eight additional firearms that were located at Morris’ residence.
The West Virginia State Police and the FBI conducted the investigation. Assistant United States Attorney John File handled the prosecution. The sentence was imposed by United States District Judge Irene C. Berger.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
This case was also prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Pleasant Grove Man Sentenced to Prison After Pleading Guilty to Unlicensed Wholesale Distribution of Prescription DrugsRead the Press Release
SALT LAKE CITY – Michael Lawrence O’Donnell, age 63, of Pleasant Grove, Utah, who admitted he distributed prescription pharmaceutical drugs he obtained in Europe to healthcare professionals around the United States without a license, will serve a year and a day in federal prison. U.S. District Judge David Nuffer imposed the sentence Wednesday afternoon in Salt Lake City.
In a plea agreement reached with federal prosecutors, O’Donnell admitted that between October 2005 and March 2007 he engaged in the wholesale distribution of prescription drugs, including Botox, Zometa, Gemzar, and Aranesp. At the time he was distributing the drugs around the United States, O’Donnell admitted that he did not possess a license from the State of Utah to engage in the wholesale distribution of the drugs.
According to the indictment in the case, prescription drug manufacturers generally distribute products to doctors, pharmacists, and hospitals through licensed wholesale distributors. A prescription drug may have been purchased and distributed by several licensed wholesale distributors before it is delivered to a doctor, pharmacy, or hospital. Some wholesale distributors obtained prescription drugs from questionable, and often unlicensed, sources that sell the drug for prices significantly below the average wholesale price of the drug. Those sources may also have purchased stolen, counterfeit, sub-potent, unapproved, expired, or otherwise unlawful drugs.
To prevent the distribution of stolen, counterfeit, sub-potent, unapproved, expired or otherwise unlawful drugs, Congress enacted the Prescription Drug Marketing Act (PDMA). The Act prohibits individuals from engaging in the wholesale distribution of prescription drugs in a particular state unless the individual is licensed by the state to do so.
“The defendant’s efforts to obtain foreign, unapproved prescription drugs from the United Kingdom and distribute them from Utah to health care practitioners throughout the United States defrauds the health care practitioners who purchased and administered the drugs, the end-user patients who were given the drugs, and the government and private insurance companies who reimbursed the health care professionals for the drugs, which were not what they were purported to be – that is, drugs distributed under federal law that met or exceeded U.S. pharmacy standards,” U.S. Attorney David B. Barlow said today.
“Unlicensed wholesalers, who import prescription drugs into the United States and further distribute them, introduce potentially substandard treatments into the stream of commerce, which, in turn, create potential health risks to the ultimate consumers of those drugs,” said Patrick Holland, Special Agent in Charge of FDA’s Office of Criminal Investigations Kansas City Office. “Protection of the pharmaceutical supply chain remains among our highest priorities, and we at FDA’s Office of Criminal Investigations will continue to partner with the Department of Justice and our law enforcement counterparts to vigorously investigate supply-chain issues.”
The indictment alleged that O’Donnell owned and operated several businesses that represented themselves as medicine wholesalers. As a part of his business, O’Donnell secured wholesale quantities of prescription pharmaceutical drugs from his related company, GHRX, located in the United Kingdom. GHRX obtained these pharmaceuticals from unknown sources throughout the world. O’Donnell received orders for prescription pharmaceutical drugs that had been placed through Clinical Care Pharmacy and Concord Drug Store, internet web sites that held themselves out to be and functioned as internet-based pharmacies.
The internet pharmacy web sites represented that their prices were competitive or lower than prices for comparable drugs available through other pharmacies and that their products were approved by United States and Canadian regulators and that their purported brand-name and generic prescription pharmaceutical drugs were equivalent to, or exceeded, North American standards.
Contrary to those representations, the indictment alleged, the prescription drugs offered through these internet pharmacy web sites were not, in fact, approved by the FDA for introduction and use in the United States. The pharmaceutical drugs were shipped by employees of O’Donnell to health care providers throughout the United States using nondescript boxes and false return addresses to conceal the actual originating shipping location.
He pleaded guilty to a count in the indictment that charged him with shipping Botox from Utah to a health care provider in New York in July 2006.
Palm Harbor Man Sentenced to 6 Years in Prison for Illegal Firearms SalesRead the Press Release
Tampa, FL - U.S. District Judge Richard A. Lazzara today sentenced Steven Scott Schriebman (24, Palm Harbor) to 6 years in federal prison for the unlawful possession and transfer of machineguns and destructive devices. Schriebman pleaded guilty on January 4, 2013.
According to court documents, from May through November 2012, Schriebman unlawfully sold a number of high-powered assault rifles, including AK-47s, AR-15s, and an Uzi, to an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Schriebman was selling the firearms from his residence in Palm Harbor. In addition to the machineguns, Schriebman sold the undercover agent several explosive devices that Schriebman believed the agent needed to blow up a vehicle. Schriebman also offered to obtain silencers, military weapons, and bullet proof vests for the undercover agent.
During the execution of a federal search warrant at Schriebman's residence, agents recovered a number of additional assault rifles, machineguns, shotguns, handguns, pen guns, magazines, ammunition, assorted firearm parts, flares, firearm conversion kits, and other firearm paraphernalia.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Owner of Hoffman Jewelers Pleads Guilty to Filing False Tax ReturnRead the Press Release
GRAND RAPIDS, MICHIGAN – Michael Hoffman, 59, of Ada, Michigan, pleaded guilty to willfully filing a false corporate tax return, U.S. Attorney Patrick A. Miles, Jr., announced today. Hoffman faces a sentence of three years imprisonment; a one year period of supervised release; a fine of $250,000; costs of prosecution; and a mandatory special assessment of $100. U.S. Attorney Miles was joined in the announcement by Special Agent in Charge Erick Martinez, IRS Criminal Investigation.
Hoffman, the owner of Hoffman Jewelers of East Grand Rapids, Michigan, acknowledged to U.S. Magistrate Judge Ellen S. Carmody that he willfully filed a false income tax return for his business in 2007 and further that the total tax loss for 2007 – 2009 for both the business and his personal returns was $261,320. The Government noted that Hoffman has paid that amount but faces additional civil penalties.
“This is a prime example of the serious consequences for cheating on your taxes,” said Special Agent in Charge Erick Martinez. “By pleading guilty, Hoffman is acknowledging he intentionally did not report all of the earnings from his jewelry business.”
Sentencing has been set for November 14, 2013, at 2:30 p.m. before U.S. District Judge Janet T. Neff.
Special Agents of the IRS investigated the case; Assistant U.S. Attorney Donald A. Davis prosecuted it.
END
Oakland Man Indicted for Robbing Five Banks and Attempting to Rob Two Banks in the East BayRead the Press Release
OAKLAND, Calif. - A federal grand jury in Oakland indicted Amanuel Moreno today with five counts of bank robbery and two counts of attempted bank robbery, announced United States Attorney Melinda Haag.
The superseding indictment alleges that Moreno, 20, of Oakland, robbed or attempted to rob the following banks:
Date Bank Location Amount Stolen 6/29/2012 Bank of the West 24299 Southland Drive, Hayward $25 12/6/2012 Bank of the West 4900 Telegraph Avenue, Oakland $506 12/6/2012 Chase Bank 2270 Otis Drive, Alameda Attempt 12/13/2012 Wells Fargo Bank 950 South Holland Drive, Hayward $1,541 12/18/2012 Chase Bank 32101 Union Landing, Union City Attempt 12/18/2013 U.S. Bank 1585 East 14th Street, San Leandro $724 1/16/2013 Bank of the West 4900 Telegraph Avenue, Oakland $3,321Moreno was arrested on January 25, 2013, by local law enforcement and remained in local custody pursuant to a probation violation. He was originally charged by criminal complaint on a single count of bank robbery on February 22, 2013, and he was indicted on that same count on July 11, 2013. Moreno made his initial appearance in federal court in Oakland on July 5, 2013, and he is currently in federal custody. His next scheduled appearance is at 2:00 p.m. on September 5, 2013, for a status hearing before U.S. District Judge Yvonne Gonzalez Rogers.
The maximum statutory penalty for each count of bank robbery and attempted bank robbery, in violation of 18 U.S.C. § 2113(a), is 20 years in prison. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the Federal Bureau of Investigation, the Oakland Police Department, the Hayward Police Department, the Alameda Police Department, the Union City Police Department, and the San Leandro Police Department.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Moreno must be presumed innocent unless and until proven guilty.
(Moreno Complaint )
(Moreno Superseding Indictment )
(Moreno Indictment )
Non-Native Resident of Pojoaque Pueblo Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Hak Ghun, 62, of Durango, Colo., was sentenced this afternoon to imprisonment for a term of a year and a day followed by two years of supervised release for his tax evasion conviction. Ghun also will be required to pay $249,567 in restitution to the IRS.
Ghun was charged in April 2012, in a three-count indictment with evading an aggregate of $367,809 in federal taxes during tax years 2005, 2006 and 2007. At that time, Ghun was the chief executive officer of BCDS Manufacturing, Inc. (BCDS), a manufacturing company located in Shiprock, N.M. In 2003 and 2004, the Navajo Nation invested economic development funds in BCDS and became the majority owner of the company, and in 2006, obtained a $2.2 million loan for the purpose of expanding the BCDS facility in Shiprock. The indictment alleged that between 2005 and 2007, Ghun used BCDS funds to pay his personal expenses and evaded his personal tax obligations on those funds by concealing his conduct from BCDS’s corporate accountant and by filing false corporate tax returns on behalf of BCDS.
On Feb. 21, 2013, Ghun entered a guilty plea to Count 2 of the indictment charging him with evading federal income taxes in 2006. In entering his guilty plea, Ghun admitted that, during 2005, 2006 and 2007, he was the chief operating officer of BCDS, a company that sought military procurement contracts as a source of economic development for the Navajo Nation, and had access to the company’s bank accounts. Ghun admitted withdrawing funds from BCDS’s bank accounts and spending a significant portion of the funds for himself. Ghun used the funds to make support payments to his ex-wife and paying for luxury cars, hotels stays and gambling. Ghun acknowledged that the funds he misused were taxable as personal income and that he failed to pay taxes on that income.
Ghun admitted receiving gross income of $207,726 in calendar year 2005 and willfully evading approximately $29,197 in federal income taxes. He also admitted receiving gross income exceeding $620,361 in calendar year 2006 and willfully evading approximately $145,156 in federal income taxes, and receiving gross income exceeding $251,435 in taxable income in 2007 and evading approximately $65,214 in taxes.
The case was investigated by the IRS, Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Jonathon M. Gerson.
Non-Native Resident of Pojoaque Pueblo Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Johncarlos Ortiz, 39, a non-native resident of Pojoaque Pueblo, N.M., pleaded guilty this morning to a felony information charging him with receipt of a visual depiction of a minor engaged in sexually explicit conduct charges under a plea agreement with the U.S. Attorney’s Office.
Ortiz was arrested in Sept. 2012, on a criminal complaint alleging that he possessed and distributed child pornography at his residence in Pojoaque Pueblo. The investigation of this case was initiated in July 2012, after the National Center for Missing and Exploited Children (NCMEC) received information that images consistent with child pornography had been posted on a social networking site and sent the tip to the New Mexico Attorney General’s Office (NMAGO). In early Aug. 2012, after determining that the images were posted using an email account subscribed to Ortiz, the NMAGO and the New Mexico Internet Crimes Against Children (ICAC) Task Force contacted the FBI. On Sept. 11, 2012, the FBI executed a federal search warrant at Ortiz’s residence and seized a computer and a computer flash drive that contained images consistent with child pornography.
During this morning’s proceedings, Ortiz admitted receiving a visual depiction of a minor involved in sexual explicit conduct on Sept. 11, 2012. Ortiz also admitted downloading images consistent with child pornography from various websites. Court records reflect that Ortiz’s unlawful conduct occurred in a residence on the Pojoaque Pueblo.
Ortiz was remanded into the custody of the U.S. Marshals Service after entering his guilty plea and he will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Ortiz faces a prison sentence of not less than five years and not more than 20 years followed by a term of supervised release to be set by the court. Ortiz also will be required to register as a sex offender after he completes his prison sentence.
The case was investigated by the Santa Fe office of the FBI, the NMAGO and the New Mexico ICAC Task Force. Assistant U.S. Attorney Jacob Wishard is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Melbourne Man Sentenced to 15 Months in Prison for Threatening to Kill the PresidentRead the Press Release
Orlando, Florida - U.S. District Judge John Antoon, II sentenced Christopher Castillo (28, Melbourne) today to 15 months in federal prison for threatening to kill the President of the United States. Castillo was convicted by a federal jury on February 5, 2013.
According to testimony and evidence presented at trial, Castillo posted the following threat on Facebook, "that's the last straw, if he gets re-elected I'm going to hunt him down and kill him watch the life disappear from his eyes." Later, after someone informed him that threatening the President was a federal offense, Castillo "doubled-down" as the witness described, by posting, "I wouldn't call it a threat but more of a promise, let them come after me...Be more than happy to take a few of them with me."
A witness reported the threat to the United States Secret Service and law enforcement officers subsequently interviewed Castillo at his home. During the interview, Castillo admitted making the statements. He also stated that he meant it because of his "severe anger" toward the President because of the President's views on healthcare. When asked what he would do if the President were standing in front of him, Castillo made an explicit statement about slapping and beating the President. Castillo also told agents that he would call the President a terrorist. During the trial, Castillo testified that he was just angry and did not really mean that he would kill the President.
This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Shawn P. Napier.
Mara Salvatrucha Leader "Pantro," Along with Other MS-13 Members, Sentenced for Racketeering Offenses Including MurderRead the Press Release
RICHMOND, Va. – Jose Armando Bran, aka “Pantro,” 30, of Richmond, Va., was sentenced today to 2 consecutive life sentences for his role in a gang related murder and maiming that he ordered while he was leader of a local clique of the transnational MS-13 gang. On May 20, 2013, Bran was found guilty of two counts of conspiracy to commit murder, murder, maiming, and use of a firearm during a crime of violence resulting in death.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General for the Justice Department’s Criminal Division; Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office; John P. Torres, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Washington; Michael Herring, Richmond Commonwealth’s Attorney; Ray J. Tarasovic, Chief of Police for Richmond Police Department; Billy Davenport, Chesterfield Commonwealth’s Attorney; and Col. Thierry G. Dupuis, Chief of Police for Chesterfield County Police Department, made the announcement after the sentencing by Senior United States District Judge Robert E. Payne.“Mara Salvatrucha has been a parasite upon the communities of the Eastern District of Virginia,” said U.S. Attorney Neil H. MacBride. “The prosecution and incapacitation of MS-13 and its criminal membership is of the utmost importance to my office and our law enforcement colleagues. We remain steadfast in both our pursuit and commitment to eradicate La Mara and will continue to use all available tools in our federal arsenal to achieve that goal. Today’s life sentence and permanent incapacitation of a vicious and morally bankrupt MS-13 leader marks yet another powerful step toward dismantling MS-13 in the Eastern District of Virginia.”
“The sentencing of Jose Bran should be an example of the commitment the FBI has against violent gangs in the Commonwealth,” said FBI SAC Jeffrey C. Mazanec. “The FBI will continue to work closely with its law enforcement partners to combat violent gangs.”
According to evidence presented at trial, Bran was responsible for orchestrating a gangland-style execution of Osbin Hernandez-Gonzalez. Bran, who served as the leader of MS-13’s Sailors Locos Salvatrucha clique in Richmond, suspected that Hernandez-Gonzalez had violated MS-13 rules by aiding a rival gang. Based upon this suspicion, Bran created a ruse to lure Hernandez-Gonzalez to the “Pony Pasture” area on the banks of the James River. Bran ordered MS-13 associate Karen San Jose to contact Hernandez-Gonzalez and convince him to gather with other MS-13 members. Bran also enlisted the help of two juveniles, Luis Cabello and Jeremy Soto, who were tasked with actually carrying out the murder of Hernandez-Gonzalez. Finally, to ensure the murder was carried out, Bran instructed MS-13 member Michael Arevalo, aka “Reptile,” to accompany the juveniles on the “mission,” and to ensure the juveniles completed the murder, which Arevalo did.
Evidence at trial also established a separate conspiracy to commit murder that involved Bran. The evidence revealed that in approximately January 2012, Bran was told that an individual with the initials F.A. was supplying information about the Richmond Sailors clique to a rival gang. A plan was developed to have MS-13 associate Justin Amador kill F.A. to both punish the supposed informant and test Amador’s loyalty.
On January 14, 2012, Bran directed that the plan be carried out. Sometime that evening, Giovanny Torres, along with Justin Amador, Mario Molina, and Marvin De Leon, drove the victim to a nightclub in Richmond. They left after forty-five minutes, telling the victim that they were all going to commit a burglary, then drove to the vicinity of the 3800 block of Terminal Avenue in Richmond. After they arrived, the victim, De Leon and Justin Amador got out of the car. At a signal from Torres, De Leon grabbed the victim, and pulled his sweatshirt over his head, holding him while Justin Amador stabbed the victim at least 14 times. The victim escaped and fled to a nearby residence while the others drove away. As a result of the attack, the victim lost a portion of one lung.
The other members and associates of the MS-13’s Sailors Locos Salvatrucha clique in Richmond, Virginia that have been convicted include the following individuals:
• On January 23, 2013, Michael Arevalo, a.k.a. “Reptile,” pleaded guilty in United States District Court to conspiracy to commit murder in aid of racketeering and use of a firearm in furtherance of a crime of violence resulting in murder. On July 25, 2013, he was sentenced to serve life in prison plus 10 years.
• On March 15, 2013, Karen San Jose pleaded guilty in United States District Court to aiding and abetting the use of a firearm in furtherance of a crime of violence resulting in murder. On July 23, 2013, she was sentenced to serve 20 years in prison.
• Luis Cabello, a.k.a. “Destroyer,” was charged as an adult by the Richmond Commonwealth Attorney’s Office and on January 25, 2012, he was found guilty by a jury of first degree murder, use of a firearm in commission of a felony and gang participation. On June 24, 2013, Cabello was sentenced to serve 34 years in prison.• Jeremy Soto, a.k.a. “Sneaky,” was charged as an adult by the Richmond Commonwealth Attorney’s Office and on July 31, 2013, pleaded guilty to second degree murder, use of a firearm in commission of a felony and gang participation. On July 19, 2013, Soto was sentenced to serve 18 years in prison.
• On August 15, 2012, Mario Molina, a.k.a. “Correcto,” pleaded guilty in United States District Court to maiming in aid of racketeering. On December 12, 2013, he was sentenced to serve 293 months in prison.
• On June 29, 2012, Giovanny Torres, a.k.a. “Gio,” pleaded guilty in United States District Court to maiming in aid of racketeering. On March 14, 2013, he was sentenced to serve 235 months in prison.
• On May 10, 2012, Marvin De Leon, a.k.a. “Bomba,” pleaded guilty in United States District Court to maiming in aid of racketeering. On July 23, 2013, he was sentenced to serve 235 months in prison.
• On June 18, 2012, Justin Amador, a.k.a. “Danger,” pleaded guilty in United States District Court to maiming in aid of racketeering. On July 25, 2013, he was sentenced to serve 235 months in prison.
• After Bran and others were arrested, Jose Mancia-Martinez, a.k.a “Ready” became the new leader of the MS-13’s Sailors Locos Salvatrucha clique in Richmond. On August 18, 2012, Mancia-Martinez and a friend offered a young girl and ride and subsequently raped her while threatening her with a machete. He was charged as an adult in Chesterfield County Circuit Court. On January 9, 2013, he was found guilty by a jury of forcible rape, and on July 17, 2013, he was sentenced to serve 20 years in prison.
This case was investigated by the FBI, HSI, the Richmond Police Department and the Chesterfield County Police Department. Assistant United States Attorney Roderick C. Young and Trial Attorney Andrew L. Creighton of Criminal Division’s Organized Crime and Gang Section prosecuted the case on behalf of the United States. Assistant Commonwealth’s Attorney Mike Holloman prosecuted the case on behalf of the Richmond Commonwealth’s Attorney’s Office, and Assistant Commonwealth’s Attorney B.J. McGee prosecuted the case on behalf of Chesterfield Commonwealth’s Attorney’s Office.
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.Man Sentenced in Heroin CaseRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Ben Scott was sentenced in United States District Court in East St. Louis to 120 months in prison, supervised release after prison for 8 years, an $800 fine, and $100 special assessment.
U.S. Attorney Stephen Wigginton commented that, “These severe federal prison sentences should put drug dealers on notice that they peddle heroin at their own risk, and those risks are considerable. This prosecution and sentencing is only one aspect of our ongoing anti-heroin initiative.”
According to public documents filed with the Court, Scott was arrested by Drug Enforcement Administration (DEA) agents on June 12, 2012, on information that he was returning from Chicago, IL with large amounts of Heroin. DEA agents stopped Scott’s vehicle in Madison County and found 200 grams of heroin in Scott’s 82-year old grandmother’s purse, who was traveling in the same vehicle as Scott.
The case was investigated by the Drug Enforcement Administration in the Southern District of Illinois and was prosecuted by Special Assistant United States Attorney Jungmin Lee.
Madison Man Admits Defrauding Banks to Keep Equipment Financing Business AfloatRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the FBI, and Phil Hall, Acting Special Agent in Charge of IRS Criminal Investigation in New England, announced that WILLIAM LECKEY, 47, of Madison, waived his right to indictment and pleaded guilty today before United States District Judge Janet Bond Arterton in New Haven to engaging in a scheme to defraud financial institutions of more than $1 million.
“This defendant repeatedly lied to banks defrauding them of over a million dollars,” stated Acting U.S. Attorney Daly. “He did so in hopes of salvaging his business. Bank fraud schemes are never the right course of action for struggling business owners. Those who ignore this advice may well find themselves facing federal criminal charges.”
“As is evident by today’s guilty plea, Mr. Leckey took a series of calculated steps to mislead financial institutions and commit bank fraud for the purpose of keeping afloat his financing business,” stated FBI Special Agent in Charge Mertz. “Mr. Leckey’s conduct was self-serving and without regard for the considerable harm he has caused the victim banks.”
“IRS Criminal Investigation uses all its investigative tools to uncover financial fraud schemes,” stated IRS-CI Acting Special Agent in Charge Hall. “With today’s guilty plea, William Leckey admitted he defrauded financial institutions of over $1million and used those funds for operating capital for his business. IRS Criminal Investigation is proud to bring our forensic accounting skills to this joint investigation to help uncover this and other types of financial crime.”
According to court documents and statements made in court, from approximately 2002 until 2012, LECKEY was the President and owner of Anchor Capital Services, Inc. (“ACS”), which provided financing to companies looking to purchase heavy equipment, such as tractor trailer trucks, dump trucks, backhoes and other similar types of equipment. ACS provided its customers with high interest rate leases, and funded the transactions through lines of credit it had available with various financial institutions. ACS would draw down on the lines of credit it had with these financial institutions by pledging its lease agreements and the related equipment as collateral. After each deal was funded by the financial institutions, ACS’s customer would make monthly payments to ACS on the lease, and ACS would use those funds to pay down the line of credit with the bank.
In pleading guilty, LECKEY admitted that he and others engaged in a long-running fraud scheme to obtain money from financial institutions to use as operating capital for ACS. As part of the scheme, LECKEY and others made false representations to the financial institutions that ACS had entered into lease transactions with customers for specified pieces of heavy equipment when, in fact, they knew that no such lease transaction had been conducted or the transaction never transpired after the lease had been signed. As a result of these false statements, the financial institutions funded these nonexistent transactions in amounts well in excess of $100,000 on a number of occasions. On one occasion in October 2010, LECKEY created a bogus customer to serve as the purported lessee of the equipment, and proceeded to defraud the financial institution into releasing $150,000 to ACS.
As a result of this scheme, ACS received more than $1 million from financial institutions on its letters of credit.
LECKEY pleaded guilty to one count of conspiracy to commit bank fraud. Judge Arterton has scheduled sentencing for October 28, 2013, at which time LECKEY faces a maximum term of imprisonment of 30 years.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Paul A. Murphy.
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Tom Carson
(203) 821-3722 [email protected]Loxahatchee Pair Indicted in Conspiracy to Defraud Banks and Federal Benefit ProgramsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Lester Fernandez, Special Agent in Charge, United States Department of Housing and Urban Development (HUD), Office of Inspector General, Ric L. Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, Thomas Caul, Acting Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General, Karen Citizen-Wilcox, Special Agent in Charge, United States Department of Agriculture (USDA), Office of Inspector General, and Christopher B. Dennis, Special Agent in Charge, United States Department of Health and Human Services (HHS), Office of Inspector General, Miami Region, announced the indictment of defendants Gloria Nereida Valle-Clas, 48, and Alexander Gonzalez, 40, of Loxahatchee, Florida.
According to the indictment, Valle-Clas obtained two social security numbers (SSN), one which was originally associated with her birth name, “Nereida Valle,” and one of which was originally associated with the name “Gloria Lopes Clas.” From at least December, 2003, to January, 2013, she used the SSN for “Nereida Valle” to obtain federal housing, social security, food, cash, and medical benefits from HUD, SSA, USDA and HHS. At the same time, she used the SSN for “Gloria Lopes Clas” to buy real estate in both Broward and Palm Beach Counties, including over an acre of property in Loxahatchee, Florida on which she built an approximately 2,700 square foot residence. Her husband, Gonzalez, also bought real estate in Broward County. When applying for federal benefits, she failed to disclose her or her husband’s ownership of property, as well as other assets and income. In 2009, after obtaining over $330,000 in mortgages on the Loxahatchee Property, Valle-Clas failed to disclose her receipt of federal benefits in obtaining a $145,000 loan charge-off.
Valle-Clas, who formally changed her name from “Nereida Valle” to “Gloria Nereida Valle-Clas” in 2003, used approximately 12 aliases in perpetrating the scheme, most of which were variations on “Nereida Valle” and “Gloria Lopes Clas.” Gonzalez used approximately eight aliases, most of which were variations on his birth name, “Alexander Jose Gonzalez Flores.”
Both Valle-Clas and Gonzalez are charged with one count of conspiracy, in violation of Title 18, United States Code, Section 371; six counts of theft of government funds, in violation of Title 18, United States Code, Section 641; four counts of making a false statement to HUD, in violation of Title 18, United States Code, Section 1001; and one count of making a false statement to an FDIC insured financial institution, in violation of Title 18, United States Code, Section 1014. In addition, Valle-Clas is charged separately with twenty-three counts of theft of government funds, in violation of Title 18, United States Code, Section 641. The maximum penalties for each of the Section 371 conspiracy and Section 1001 HUD false statement counts are five years’ imprisonment, up to three years supervised release, and a fine of $250,000 or not more than twice the gross gain or loss form the offense, whichever is greater. The maximum penalty for each of the Section 641 theft of government funds charges is ten years imprisonment, up to three years supervised release, and a fine of $250,000 or not more than twice the gross gain or loss from the offense, whichever is greater. For the Section 1014 false statement to a bank charge, the maximum penalty is thirty years imprisonment, up to five years supervised release, and a fine of $1,000,000 or not more than twice the gross gain or loss form the offense, whichever is greater.
U.S. Attorney Wifredo A. Ferrer stated, “Those who defraud our federal benefit programs take resources from the neediest members of our society. The U.S. Attorney’s Office is committed to working with law enforcement to investigate and prosecute those who perpetrate these frauds.”
HUD-OIG Special Agent in Charge Lester Fernandez stated, “The United States Department of Housing & Urban Development - Office of Inspector General is dedicated to ensuring these rental assistance funds are properly accounted for and made available to needy recipients. I am proud of the combined investigative efforts which led to this indictment. We will continue to work with our law enforcement partners toward eliminating public assistance fraud in HUD’s programs.”
Special Agent in Charge Citizen-Wilcox stated, “The Office of Inspector General at USDA is determined to prevent and uncover potential criminal activity in the SNAP program. Strengthening the integrity of SNAP is a priority for our Investigations division. The resources taxpayers provide for vital Federal Nutrition programs should be reserved for those truly in need.”
“Conspiring to steal tax dollars at the expense of needy Americans is offensive,” said Christopher B. Dennis, Special Agent in Charge, Office of Inspector General, Department of Health and Human Services, Miami Region. “Valle-Clas and Gonzalez shamelessly stole government benefits even as they accumulated substantial real estate holdings.”
Valle-Clas and Gonzalez made their initial appearances in federal district court in West Palm Beach, Florida before the Honorable United States Magistrate Judge Dave Lee Brannon earlier today. Arraignments and detention hearings are scheduled for Friday, August 9, 2013 in West Palm Beach before Judge Brannon.
Mr. Ferrer commended the investigative efforts of HUD Office of the Inspector General, the Palm Beach County Sheriff’s Office, the SSA Office of the Inspector General, the USDA Office of the Inspector General, and the HHS Office of the Inspector General. This case is being handled by Assistant United States Attorney Carolyn Bell.
An indictment is only an accusation and the defendants are presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Leader of Sarasota Oxycodone Distribution Ring Pleads GuiltyRead the Press Release
Tampa, Florida - Acting United States Attorney A. Lee Bentley, III announces that Robert Benefield (44, Sarasota) pleaded guilty today to a one count information charging him with conspiring with others to distribute Oxycodone. Benefield faces a maximum penalty of thirty years in federal prison because of his prior felony drug convictions.
According to the plea agreement, in 2012, Benefield recruited drug users to unlawfully obtain Oxycodone and other prescription pain medications. Benefield coordinated with doctors in the Miami area, and drove his co-conspirators from Sarasota to these doctors' offices in Miami. The doctors sometimes met with persons recruited by Benefield, and gave them prescriptions for Oxycodone and other pain medications. Upon their return to Sarasota, the co-conspirators filled the prescriptions and turned the drugs over to Benefield for further illegal distribution, in exchange for money and drugs. Benefield also obtained prescriptions from doctors without having the prescribed patients actually present at the doctors' offices.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Sarasota Police Department as part of Organized Crime Drug Enforcement Task Force (OCDETF) Operation SRQ Cartel II, an ongoing investigation into the most serious drug traffickers in and around Sarasota. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation's illegal drug supply. It is being prosecuted by Assistant United States Attorney Christopher F. Murray.
Justice Department Settles Allegations of Disability Discrimination Against the City of St. Peters, Mo.Read the Press Release
The Justice Department announced today that the city of St. Peters, Mo. will pay $80,000 and make changes to its zoning laws to settle a lawsuit alleging that the city violated the federal Fair Housing Act (FHA) and Title II of the Americans with Disabilities Act (ADA) when it denied a zoning request to operate a group home for four women with intellectual disabilities. The lawsuit is part of the Justice Department’s continuing effort to enforce civil rights laws that require states and municipalities to end discrimination against, and unnecessary segregation of, persons with disabilities. The settlement was filed today and must be approved by the U.S. District Court for the Eastern District of Missouri.
“The Fair Housing Act and the Americans with Disabilities Act ensure that municipalities cannot enforce discriminatory land use policies that restrict the rights of their residents to live in the housing of their choice,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “This important settlement compensates the individuals who were harmed by the city’s practices and will prevent future housing discrimination against the city’s residents who have disabilities.”
“Zoning ordinances that unjustifiably keep group homes out of neighborhoods violate the Fair Housing Act,” said Bryan Greene, U.S. Department of Housing and Urban Development’s (HUD) Acting Assistant Secretary for Fair Housing and Equal Opportunity. “HUD and the Department of Justice will continue to work together to ensure that everyone, including persons with disabilities, has access to the kind of housing that meets their needs.”
The settlement resolves the United States’ claims that the city violated the FHA and ADA when it adopted and enforced a facially discriminatory 2,500 foot group-home spacing requirement and when its Board of Adjustment refused, without justification, a variance petition to allow Community Living Inc. (CLI) to operate a group home for four women with disabilities. The complaint also alleges that the city refused to make reasonable accommodations to the city’s rules, policies, practices or services that were necessary to afford the residents an opportunity to use and enjoy their home. In addition to providing $80,000 for the residents, the settlement requires that the city:
· Replace the city ordinance that imposes a 2,500-foot spacing requirement on group homes for persons with disabilities with an ordinance that is approved by the United States;
· Adopt a written policy by which persons may request reasonable accommodations or modifications on the basis of disability from the city’s zoning and land use requirements;
· Prepare detailed written findings whenever the city denies any type of request for zoning or land use relating to a dwelling occupied by, or designated or intended for occupancy by, persons with disabilities; and
· Provide training on the FHA and ADA to City officials and employees involved in land use and zoning decisions.
The case began when a legal guardian for a resident of the group home filed a complaint with HUD after the Board of Adjustment denied the group home’s variance petition. HUD referred the complaint to the Justice Department, which conducted an investigation.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Individuals who believe that they may have been victims of housing discrimination should call the Housing Discrimination Tip Line (1-800-896-7743) or e-mail the Justice Department at [email protected]. Such persons may also contact HUD at 1-800-669-9777.
Fair housing enforcement is a priority of the Civil Rights Division. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt
Jury Convicts Two Doctors of Conspiracy to Commit Money Laundering Resulting from Pill Mill Operation in Broward and Palm Beach CountiesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), announce the conviction of two doctors, Cynthia Cadet, 43, of Parkland, FL, and Joseph Castronuovo, 73, of Key Largo, FL. After a two month trial, a West Palm Beach jury found the defendants guilty of conspiracy to commit money laundering. The jury also returned a forfeiture verdict in the amount of $10,001, as to each defendant. The defendants were acquitted of the remaining charges. Sentencing has been scheduled for November 4, 2013 at 1:30 p.m. before U.S. District Court Judge Kenneth A. Marra.
The charges against the defendants stem from Operation Oxy Alley, a coordinated investigation into pill mills in Broward and Palm Beach Counties. In August 2011, thirty-two defendants, including Cadet and Castronuovo, were charged with racketeering conspiracy, money laundering conspiracy, possession with intent to distribute controlled substances and other offenses. Twenty-eight defendants have entered guilty pleas and been sentenced in connection with the August 2011 Indictment.
According to the August 2011 Superseding Indictment and evidence presented in court, defendants Christopher and Jeffrey George, twin brothers, operated, managed and financed four pain management clinics in Broward and Palm Beach Counties. According to the August 2011 Superseding Indictment, the Second Superseding Indictment filed on July 19, 2012, and statements made in court, from 2007 to early 2010, these clinics distributed approximately 20 million oxycodone pills and made more than $40 million from the illegal sales of controlled substances. Thirteen of the thirty-two defendants were doctors, including Cadet and Castronuovo.
The Second Superseding Indictment charged Cadet and Castronuovo with conspiring to possess with the intent to distribute controlled substances (punishable by up to 20 years’ imprisonment) and money laundering conspiracy (punishable by up to ten years’ imprisonment). Cadet was also charged with dispensing oxycodone and other controlled substances that resulted in the death of seven individuals (each count punishable by up to life imprisonment) and conspiracy to unlawfully distribute steroids (punishable by up to ten years’ imprisonment). Castronuovo was also charged with dispensing oxycodone and other controlled substances that resulted in the death of two individuals, and conspiracy to distribute oxycodone to persons under the age of twenty-one (punishable by up to forty years’ imprisonment).
Operation Oxy Alley is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
The investigation and prosecution was the result of work by federal, state and local law enforcement agencies. The FBI, DEA, IRS-CID were assisted by the Palm Beach County Sheriff’s Office, the Broward Sheriff’s Office, the Hollywood Police Department, the Boca Raton Police Department, and the Davie Police Department. Coordination efforts also included cooperation by the Palm Beach State Attorney’s Office and the Delray Beach Police Department, Jupiter Police Department, West Palm Beach Police Department, Boynton Beach Police Department, Medley Police Department, Homestead Police Department, North Miami Beach Police Department, and Sunny Isles Police Department. This case is being prosecuted by Assistant U.S. Attorneys Paul F. Schwartz and Lawrence D. LaVecchio.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
July 24, 2013: Wyoming Man Sentenced for Failing to Stop After Accident Resulting in DeathRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced that on July 24, 2013, Jerry Don Fuller, a 25 year old non-Indian, was sentenced for failing to stop his vehicle or render aid after he accidentally struck and killed Alvin Lee Talksdifferent Jr, a 28 year old member of the Northern Arapaho Tribe, who was intoxicated and walking in Fuller’s lane of travel. Mr. Fuller was sentenced by United States Magistrate Judge Teresa McKee to four months incarceration, one year of supervised release, a $2500.00 fine and a $25.00 special assessment. This case was investigated by the Federal Bureau of Investigation.
Jose Morales Sentenced to over 21 Years in Prison for Heroin and Marijuana Distribution ConspiraciesRead the Press Release
Attempted to Smuggle Heroin Into Prison and Run a Marijuana
Conspiracy From Prison
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Jose Joaquin Morales, age 37, of Baltimore, Maryland, today to 262 months in prison followed by six years of supervised release for conspiring to distribute heroin and marijuana while he was in prison. Judge Titus enhanced Morales’ sentence upon finding that Morales was a career offender, that he threatened his co-defendant, and that he used his minor child to help conceal the heroin smuggling. Judge Titus also ordered the sentence imposed today be consecutive to the 262 month federal sentence Morales is currently serving.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; and Colonel Michael Kundrat, Chief of the Maryland Transportation Authority Police.
“This investigation by DEA utilized a myriad of investigative techniques in order to expose Morales' ways of smuggling drugs into prison. This case illustrates DEA's mission to take down drug traffickers anywhere, even in prison,” stated Gary Tuggle, Assistant Special Agent in Charge of the Drug Enforcement Administration, Baltimore District Office. “As a repeat offender Morales will now grow very old in prison,” added Tuggle.
According to court documents and statements in court, Morales was sentenced in the U.S. District Court in the Southern District of Texas to 262 months in prison for possession with intent to distribute five kilograms or more of cocaine. The federal Bureau of Prisons transferred Morales to the U.S. Penitentiary in Canaan, Pennsylvania to serve his sentence. Morales admitted that he was part of two conspiracies – one to bring heroin into the prison, and a second to continue to direct his marijuana trafficking outside the prison using his contacts in Maryland and Texas.
Morales enlisted the help of female family members or women with whom he’d had a romantic relationship to assist in the drug distribution. Morales contacted the women, providing them with a contact from whom they could obtain the heroin. He described to each woman how to package the heroin in balloons and that when the woman arrived at the prison, they would exchange the heroin by kissing, transferring the heroin from the woman’s mouth to Morales’.
For example, beginning in April 2010, Morales called co-defendant Terry Sadler to arrange for her to transport heroin into the prison facility. Sadler had a long time romantic relationship with Morales and they had a child together. Morales provided Sadler with a drug contact in Baltimore from whom Sadler could obtain heroin. After obtaining the heroin, Sadler visited Morales in prison and distributed the heroin to him by kissing him and transferring the heroin packages from her mouth to his. In September 2010, Morales and Sadler discussed bringing in a second package of heroin and Morales put Sadler in touch with his contacts in Baltimore to obtain heroin. Later, Morales told Sadler to bring their child when she came to visit him on September 24th, because it would be less likely for prison personnel to question the visit. On September 23, 2010, DEA agents executed a search warrant at Sadler’s home and recovered the heroin that Sadler had obtained for Morales, as well as balloons that Morales had told Sadler to use to package the heroin.
Morales directed another woman to have telephone conversations with his marijuana source, who was located in Texas. Morales intended for the marijuana to be mailed from Texas to Maryland. In fact, the DEA intercepted a package that had been mailed from Texas to Maryland, and was found to contain over five pounds of marijuana. During a meeting on September 17, 2010, Morales was overheard by law enforcement discussing the marijuana conspiracy with this woman and requesting that the woman also smuggle heroin into the prison like Terry Sadler was doing.
Terry Sadler, age 37, of Hanover, Maryland, pleaded guilty to her role in the scheme and was sentenced to 18 months in prison.
Morales is also charged in a separate case with using a phone in the commission of a murder for hire and is scheduled to go to trial on that charge on September 24, 2013.
United States Attorney Rod J. Rosenstein commended the DEA and Maryland Transportation Authority Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Sandra Wilkinson and Martin J. Clarke, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Jefferson Davis County Man Arrested on Federal Gun ChargesRead the Press Release
Hattiesburg, Miss - Dennis Earl Smith, Jr., 33, or Prentiss, was arrested today pursuant to an indictment charging him with possession of a firearm by a convicted felon, announced U.S. Attorney Gregory K. Davis and Phillip Durham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Smith will appear for an arraignment on Monday, August 5 at 10:30 a.m. before U.S. Magistrate Judge Michael T. Parker in Hattiesburg.
The maximum penalty for possession of a firearm by a convicted felon is ten years in prison and $250,000 fine.
This case is the result of an investigation by the Lamar County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is prosecuted by Assistant U.S. Attorney Annette Williams.
The public is reminded that an indictment is merely an accusation and the defendant is presumed innocent unless proven guilty.
###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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Houston Man Pleads Guilty to Using Fake Credit Cards and Other Devices to Illegally Access Cash While at Southeast Louisiana CasinosRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that Deamioune Fransyre Caples, 33, of Houston, Texas, pleaded guilty before U.S. District Judge Patricia Minaldi to using counterfeit credit cards and other devices to steal thousands of dollars.
According to evidence presented at the guilty plea, between June 21, 2012 and January 13, 2013, Caples used counterfeit credit cards and other access devices at Delta Downs, L’Auberge Du Lac, and Isle of Capri casinos to access money. The devices included Green Dot Visa cards, 123 Rewards cards, Chase cards, Wells Fargo cards and Bank of America cards among others. The cards displayed Caples’ name on the front, but the magnetic strip on the back contained the identity of the financial institution and individual who had not authorized Caples to use their account information. The defendant made the counterfeit access devices in Texas and traveled to the Western District of Louisiana to use them. He stole $118,684 using the counterfeit access devices.
Caples faces up to 10 years in prison, three years of supervised release, a $250,000 fine and restitution for the unauthorized use of a counterfeit access device count. Sentencing is scheduled to take place in October of 2013.The U.S. Secret Service investigated the case. Assistant U.S. Attorney Howard C. Parker is prosecuting the case.
Guatemalan Pseudoephedrine Traffickers SentencedRead the Press Release
ALEXANDRIA, Va. – Edgar Leonel Estrada Morales, 58, of Guatemala City, Guatemala, was sentenced today to 168 months in prison for conspiring to distribute pseudoephedrine for unlawful importation into the United States and to aid and abet the manufacture of methamphetamine.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Derek S. Maltz, Special Agent In Charge of the Drug Enforcement Administration’s (DEA) Special Operations Division made the announcement after the plea was accepted by United States District JudgeT.S. Ellis, III.
Estrada Morales, along with his nephew, Victor Estrada Paredes, were indicted on February 3, 2011, by a federal grand jury on a charge of conspiracy to distribute pseudoephedrine (a chemical used in the manufacture of methamphetamine) for unlawful importation into the United States and to aid and abet the manufacture of 500 grams or more of methamphetamine. On July 19, 2013, Judge Ellis sentenced Estrada Paredes to serve 132 months in prison.
In a statement of facts filed with his plea agreement, Estrada Morales admitted to selling nearly 5,000 pseudoephedrine pills to an individual whom he believed was involved in a methamphetamine production operation based in Houston, Texas. This individual was, in reality, a DEA cooperating witness. Estrada Morales also introduced this individual to his nephew, Estrada Paredes, who were also involved in this pseudoephedrine trafficking operation. Estrada Paredes entered a guilty plea to the same indictment before Judge Ellis on April 25, 2013. Estrada Paredes negotiated the sale of equipment used to extract pseudoephedrine from pill form for use in the manufacture of methamphetamine, and discussed working for the DEA cooperator’s fictitious United States-based methamphetamine trafficking organization. According to the indictment, Estrada Morales sold pseudoephedrine to groups, including the “La Familia” Mexican drug cartel that sold methamphetamine in the United States.
This case was investigated by the Drug Enforcement Administration. Assistant United States Attorney Michael P. Ben’Ary, of the Office’s National Security and International Crime Unit, is 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.usdoj.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 http://pacer.uspci.uscourts.gov.Guatemalan Man Sentenced to More Than Three Years' Imprisonment for Illegal Reentry After Deportation and Unlawful Possession of Ammunition by A Felon and Illegal AlienRead the Press Release
A Guatemalan man who illegally reentered the United States and unlawfully possessed ammunition was sentenced today to more than three years in federal prison.
Armando Ramiro Garcia-Arenales, age 30, from Waterloo, Iowa, received the prison term after a May 2, 2013, guilty plea to one count of illegal reentry into the United States after deportation by an aggravated felon and one count of unlawful possession of ammunition by a felon and illegal alien.
The evidence showed that on March 1, 2013, Garcia-Arenales was arrested following a traffic stop by officers of the Waterloo Police Department. A search of Garcia-Arenales’ car uncovered numerous rounds of 9 mm ammunition. Garcia-Arenales had previously been convicted in 2005 in Clayton County, Iowa, of the felony offenses of delivery of cocaine and possession of cocaine with intent to deliver.
On March 13, 2013, officers from the Department of Homeland Security, Immigration and Customs Enforcement (ICE), determined that Garcia-Arenales had previously been deported in October 2008 and had not received permission to reenter the United States. Garcia-Arenales had been arrested in May 2008 in an immigration enforcement action at Agriprocessors in Postville, Iowa. He was convicted in the United States District Court for the Northern District of Iowa of use of a fraudulent alien registration card and ordered removed from the United States.
Garcia-Arenales was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Garcia-Arenales was sentenced to 37 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Garcia-Arenales is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by officers from the Waterloo Police Department, and the Department of Homeland Security, Immigration and Customs Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-2008.
Groton Man Sentenced to More Than Six Years in Federal Prison for Sex Trafficking of A MinorRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that SAMUEL RIVERA, 23, of Groton, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 78 months of imprisonment, followed by seven years of supervised release, for sex trafficking of a minor.
According to court documents and statements made in court, Samuel Rivera and his former wife, Dana Rivera, arranged for the prostitution of a 16-year-old girl. The Riveras posted advertisements on the Internet, took calls of prospective customers, booked hotel rooms, and transported the minor victim to and from prostitution calls in southeastern Connecticut, Rhode Island and New Hampshire. In May and June 2011, the minor victim saw approximately five or six customers a day. The Riveras split the money the victim earned and gave none of it to the victim.
Samuel Rivera has been detained since his arrest on November 16, 2012. On February 19, 2013, he pleaded guilty to one count of conspiracy to commit sex trafficking.
Dana Rivera pleaded guilty to the same charge and, on May 8, 2013, she was sentenced to 78 months of imprisonment and seven years of supervised release.
This matter was investigated by the Federal Bureau of Investigation with the assistance of the Stonington Police Department. The case was prosecuted by Assistant United States Attorney David E. Novick.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Goodwin: “another Pedophile Has Logged Off the Internet”Read the Press Release
Wyoming man admits possessing child pornography, sentenced to 4 ½ years in federal prison
BECKLEY, W.Va. – “Another pedophile has logged off the Internet and will be heading to prison,” U.S. Attorney Booth Goodwin announced, in the wake of a Wyoming County man’s sentencing on a federal child pornography charge. David Walter Martin Jr., 40, of Pineville, was sentenced to four and a half years in prison. The sentence was handed down by United States District Judge Irene C. Berger in Beckley. Martin previously pleaded guilty in March to possession of child pornography. Martin collected more than 600 pictures and videos of children having sex or performing sexual acts. The child pornography was found on Martin’s computer after he downloaded it from the Internet.
U.S. Attorney Booth Goodwin said, “Pedophiles like Mr. Martin who download and trade images of child pornography over the Internet are exploiting innocent children, plain and simple. My initiative to combat these despicable acts of child sexual abuse will continue.”
The Mullens Police Department, the Wyoming County Sheriff’s Department, and the West Virginia Internet Crimes Against Children Task Force conducted the investigation. Assistant United States Attorney Lisa Johnston handled the prosecution.
This case was brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Goodwin Announces Eight Guilty Pleas in Federal Prescription Drug CrackdownRead the Press Release
BLUEFIELD, W.Va. – Seven residents from Mercer, McDowell and Wyoming counties and one Virginia resident pleaded guilty in federal court this week in connection with an illegal prescription drug distribution conspiracy, announced U.S. Attorney Booth Goodwin. The charges against each defendant were brought as part of the Bluefield Pill Initiative, a concerted attack by federal, state, and local government on the illegal distribution of prescription drugs in the southern region of West Virginia. The initiative was announced by U.S. Attorney Goodwin in June 2011.
The following defendants pleaded guilty today, August 1, to using a telephone to commit a drug crime: Eric Lee Flack, 34, of Bluefield; Lori Megan Falls, 29, of Princeton; Kathy Burchett, 38, of Welch, McDowell County; and, Eric M. Tiller, 41, of Princeton. The telephone calls that were made by each defendant involved the distribution of oxycodone.
The following defendant pleaded guilty on Wednesday, July 31, to using a telephone to commit a drug crime: Anthony Lee Madison, 23, of Bluefield, Va. The telephone call that was made by the defendant also involved the distribution of oxycodone.
The following defendants pleaded guilty on Tuesday, July 30, to using a telephone to commit a drug crime: Danny Lee Decker, 42, of Mullens, Wyoming County; and, Edgar Junior Ponce, 32, of Oceana, Wyoming County. Similarly, the telephone calls that were made by each defendant involved the distribution of oxycodone.
Each defendant faces up to four years in federal prison when they are sentenced in December.
Also, Aaron O. Gamble, 30, of Princeton, Mercer County, W.Va., pleaded guilty on Monday, July 29, to distribution of oxycodone. In September 2012, Gamble distributed oxycodone to a confidential informant working in cooperation with the Southern Regional Drug and Violent Crime Task Force.
Gamble faces up to 20 years in federal prison when he is sentenced in December.
The Bluefield Pill Initiative is a collaborative, multi-agency regional law enforcement effort designed to halt prescription drug trafficking in Mercer, McDowell, and Wyoming counties. The Bluefield Pill Initiative is led by the Southern Regional Drug and Violent Crime Task Force, which includes the West Virginia State Police Bureau of Criminal Investigation, the Mercer, McDowell and Wyoming County Sheriff’s Departments, and the Bluefield and Princeton Police Departments.
Fund Manager and Real Estate Developer Arrested and Charged in $96 Million Securities FraudRead the Press Release
A 24-count indictment was unsealed this morning in federal court in Central Islip, New York, charging Brian R. Callahan, an investment fund manager, and Adam J. Manson, a real estate developer, with conspiracy to commit securities and wire fraud for their roles in operating a $96 million Ponzi scheme. Both defendants are in custody and will be arraigned this afternoon before United States Magistrate Judge A. Kathleen Tomlinson at the United States Courthouse in Central Islip. In addition, the government seized over $1 million of alleged criminal proceeds and moved to forfeit the defendants’ interest in the Panoramic View Resort & Residences in Montauk, New York (the “Panoramic View”).
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Toni Weirauch, Special Agent-in-Charge, United States Internal Revenue Service, Criminal Investigation, New York (IRS).
According to the indictment and other court filings, between December 2006 and February 2012, Callahan raised more than $118 million from at least 40 investors in connection with four different investment funds that he managed. He had assured those investors that their money would be invested in mutual funds, hedge funds and other securities. Instead of investing the money as he promised, Callahan misappropriated approximately $96 million and began to operate the investment funds as a large-scale Ponzi scheme. Among other things, Callahan diverted millions of dollars towards the Panoramic View, an unprofitable 117-unit beachfront resort and residence development in Montauk, New York, that he owned with his brother-in-law and co-defendant, Adam Manson. He also commingled the money from the various investment funds and used it to pay tens of millions of dollars in partial redemptions to his victim investors to keep the Ponzi scheme afloat, and to purchase luxury items such as expensive cars and homes in Old Westbury and Westhampton, New York. To avoid detection and continue the scheme, Callahan sent fake account statements to investors that falsely showed that their funds were invested and performing well, and he repeatedly lied to his investors about both the nature and status of their investments.
“As alleged, the defendants used one of Long Island’s landmarks, the Panoramic View Resort, to perpetrate a wide-ranging fraud,” stated United States Attorney Lynch. “Callahan gave his word that he would invest his clients’ funds safely and responsibly in established vehicles. Instead, he simply stole the funds to prop up his partner’s failing investment. To conceal their status as business failures, the defendants employed all the tricks in the typical con man’s bag. They created fake documents, stole a person’s identity and engaged in forgery. The defendants allegedly lied to the lender, they lied to the auditor, and Callahan repeatedly lied to his investors. The lies stop now. Today’s arrests demonstrate the Office’s commitment to aggressively prosecute those individuals who commit financial crimes.” Ms. Lynch expressed her grateful appreciation to the Securities and Exchange Commission and the British Virgin Islands Financial Investigation Agency for their cooperation and assistance in the investigation.
FBI Assistant Director-in-Charge Venizelos stated, “Allegedly, Mr. Callahan and Mr. Manson violated the trust of their clients, stealing victims’ hard earned money to perpetuate their fraud. Instead of investing the funds as promised, Mr. Callahan used the deposits to perpetuate the scheme, all while buying luxury cars and an estate in Westhampton. Mr. Callahan was so indiscriminant, he even stole from a Long Island Fire Department. Today, the game is up. The FBI will continue working to protect investors and stop alleged fraudsters.
IRS Special Agent-in-Charge Weirauch stated, “The architects of Ponzi-type schemes often employ a variety of sophisticated measures to keep them operating without detection. However, the cooperation between IRS-Criminal Investigation, the U.S. Attorney’s Office, and the FBI should give the investing public confidence that such schemes will ultimately be uncovered and thoroughly investigated, and that the scammers will be prosecuted.”
In one instance, Callahan allegedly solicited a $600,000 investment from a Long Island-based fire department by promising to invest the fire department’s money in mutual funds and other securities. Instead of investing the money, Callahan fraudulently diverted the fire department’s funds to the Panoramic View, and sent bogus account statements to the fire department that falsely showed that the funds had been invested in mutual funds. Callahan also convinced a Maryland resident to invest approximately $11 million after promising to invest those funds in low-risk securities. Callahan used the investor’s money to make redemption payments to other investors whom he had previously defrauded and to keep the Ponzi scheme afloat.
According to the indictment, Manson managed the Panoramic View property and poured the money that Callahan had diverted from the investors into Manson’s struggling real estate project at the Panoramic View. To help Callahan carry out his investment scheme, Manson lied to the independent auditor of Callahan’s investment funds and, together with Callahan, provided fake documents, including bogus promissory notes and doctored balance sheets, to the independent auditor. Manson’s and Callahan’s fraudulent actions concealed the misuse of the investors’ funds and caused the auditor to overstate the value and profits of Callahan’s investment funds to the victim investors. As a result of Manson and Callahan’s fraudulent actions, investors were lulled into believing that the funds were performing, and they continued to “invest” their money with Callahan.
As alleged in the indictment, Manson also defrauded a New York-based lending institution that had loaned more than $45 million to Manson in connection with his real estate development project at the Panoramic View. While attempting to extend these loans past their maturity date, Manson misled the lender about the money that the Panoramic View had received from Callahan’s funds, and falsely told the lender that the funds were from his father. Manson engaged in this fraudulent conduct in an effort to conceal the fact that he was simultaneously telling the independent auditor of the Callahan funds that there were no other creditors or debt associated with the Panoramic View.
The charges contained in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants each face a maximum sentence of twenty years’ imprisonment on each of the securities fraud, wire fraud and conspiracy to commit wire fraud counts, five years’ imprisonment on the conspiracy to commit securities fraud count, and Callahan faces two years’ imprisonment for each of the aggravated identity theft counts. Additionally, if convicted, Callahan and Manson may be fined up to $5,000,000 for each of the securities fraud counts, $250,000 for each of the wire fraud, conspiracy to commit wire fraud and conspiracy to commit securities fraud counts, and Callahan may be fined up to $250,000 for each of the aggravated identity theft counts. In addition to seizing over $1 million in alleged criminal proceeds, the government is also seeking to forfeit all Panoramic View cooperative units held by Callahan and Manson, together with Callahan’s residence in Old Westbury, New York, and Manson’s beachfront condominium in Westhampton, New York.
The government’s case is being prosecuted by Assistant United States Attorneys David C. Woll, Jr., Christopher C. Caffarone, Brian D. Morris, and Karin Orenstein.
This prosecution was the result of efforts by President Barack Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendants:
BRIAN R. CALLAHAN
Age: 43
Old Westbury, New YorkADAM J. MANSON
Age: 41
Old Westbury, New YorkFranklin County Man Sentenced on Federal Child Pornography ChargesRead the Press Release
St. Louis, MO – DARRELL PECK was sentenced to ten years in prison for his possession of child pornography in February 2010 in Franklin County.
Peck, Sullivan, MO, pled guilty February 25th to two felony counts of possession of child pornography. He appeared today for sentencing before Senior United States District Judge E. Richard Webber.
This case was investigated by the Federal Bureau of Investigation and the Franklin County Sheriff’s Office. Assistant United States Attorney Reginald Harris handled the case for the U.S. Attorney’s Office.Fourteen Defendants Facing State or Federal Narcotics or Firearms Charges Alleging Sales of Guns and Drugs in ChicagoRead the Press Release
CHICAGO —Fourteen defendants are facing state or federal narcotics and/or firearms charges that, again, link drugs and illegal gun possession in Chicago. An investigation led by the Federal Bureau of Investigation, together with the Chicago Police Department and other state and federal law enforcement agencies, has resulted in federal charges against five defendants, while nine others are facing state charges. The investigation resulted in seizures of various retail amounts of powder and crack cocaine and marijuana, and 18 firearms, including an Intratec TEC-22 .22 caliber pistol and two high capacity magazines loaded with ammunition.
The investigation moved up and down an alleged drug supply chain as a result of FBI agents and Chicago police officers, from CPD’s Gang Investigations Division and 9th District tactical team, using federal wiretaps on multiple phones to intercept conversations and deliveries of narcotics and firearms.
In a telephone conversation on Jan. 7, 2013, one federal defendant, JOSE M. LOPEZ, also known as “Baby J,” a self-admitted member of the Latin Saints street gang, allegedly told an individual that they “should just get it for the block,” referring to the TEC-22 pistol so the weapon could be used by the Latin Saints to defend their territory, according to the charges against Lopez.
In all, five defendants are facing federal charges in four separate criminal complaints that were unsealed following the arrests of four of those five yesterday. The fifth defendant, ROCO CERVANTES, is a fugitive and a warrant was issued for his arrest. Eight of the nine state defendants were also arrested yesterday.
The arrests and charges were announced today by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, together with Anita Alvarez, Cook County State’s Attorney; Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Garry F. McCarthy, Superintendent of the Chicago Police Department.
“These charges demonstrate the continued efforts of the FBI and our law enforcement partners to address the violence that plagues many Chicago neighborhoods. For too long, the families of those neighborhoods have been denied a sense of safety and security. We remain committed to working as a unified front to pursue those who bring guns and drugs and the attendant violence into those areas,” Mr. Nelson said.
“This complex joint operation focused on preventing a cycle of violence and, in addition to the arrests made, we recovered 18 illegal guns. Joint investigations like this one are an effective way for police to work with our state and federal law enforcement partners to address drug and gun crimes,” Superintendent McCarthy said.
“This operation marks another example of our focused and coordinated efforts to get weapons off the streets of Chicago and to eradicate the ongoing plague of drug and gun violence in our neighborhoods,” Ms. Alvarez said.
The Chicago offices of the Internal Revenue Service Criminal Investigation Division and the Homeland Security Investigations (HSI) also participated in the investigation, which was conducted under the umbrella of the U.S. Organized Crime Drug Enforcement Task Force (OCDETF).
The nine state defendants face various charges, including gunrunning, unlawful sale of a firearm, and delivery of a controlled substance. The eight state defendants who are in custody are: Darrell Mullins, 19; Omar Sanchez, 22; Daniel Nunez, 20; Esteban Rincon, 33; Richard Rocha, 30; Ashley Guzman, 24; Lino Padilla, 26; and Alejandro Guerra, 33.
Details of the four separate federal complaints follow:
United States v. Cervantes, Pulido, and Lopez, 13 CR 622
ROCO CERVANTES, aka “Rock,” 41, and his half-brother, DANNY PULIDO, 26, both of Chicago, were charged with conspiracy to possess and distribute more than 500 grams of cocaine. JOSE M. LOPEZ, aka “Baby J,” 26, was charged with distribution of cocaine.
Pulido and Lopez appeared yesterday before U.S. Magistrate Judge Arlander Keys, while Cervantes remains a fugitive. Pulido was released on bond pending a preliminary hearing on Aug. 19. Lopez remains in federal custody pending detention and preliminary hearings on Aug. 6.
According to the complaint affidavit, Lopez sold 248.7 grams, or nearly nine ounces, of cocaine to a confidential source for $9,300 in the 4500 block of South Hermitage on Dec. 2, 2012. Lopez allegedly obtained the cocaine from Cervantes, who was his upstream source of supply, while Cervantes and Pulido allegedly conspired to distribute cocaine to Lopez. On Dec. 15, 2012, Cervantes and Pulido supplied nine additional ounces of cocaine to Lopez, who then distributed the cocaine to an individual who fled without paying Lopez, the affidavit alleges. On April 26, 2013, Cervantes and Pulido allegedly sold approximately 167.6 grams, or nearly six ounces, of cocaine to a different confidential source working with law enforcement.
If convicted, Cervantes and Pulido face a mandatory minimum sentence of five years and a maximum of 40 years in prison and a $5 million fine, while Lopez faces a maximum of 20 years in prison and a $1 million fine.
United States v. Lopez, 13 CR 621
Lopez was also charged in a separate complaint with being a felon-in-possession of a firearm in connection with the TEC-22. After Lopez and another individual allegedly acquired the weapon on Jan. 8, 2013, Chicago police officers attempted to stop Lopez’ vehicle but he failed to stop and led police on a brief high-speed chase. Police located Lopez’ abandoned vehicle in an alley in the 4500 block of South Hermitage, and found a black plastic high capacity .22 caliber magazine containing 30 live rounds of ammunition and five $100 bills. On Jan. 17, Lopez allegedly sold the TEC-22 pistol, a flash suppressor, two magazines loaded with 48 rounds of .22 ammunition, and a hard black plastic gun case to a confidential source for $500. On March 7, 2013, Lopez sold a .45 caliber handgun to the same confidential source for $500, according to the complaint affidavit.
The felon-in-possession count carries a maximum penalty of 10 years in prison and a $250,000 fine, if convicted.
United States v. Rincon, 13 CR 620
RICHARD C. RINCON, aka “Suds,” 31, of Chicago, was charged with being a felon-inpossession of a .25 caliber handgun on July 3, 2013. Rincon allegedly sold the gun and ammunition for $125, as well as a bag containing cocaine for $575, to a confidential source.
Rincon remains in federal custody and waived a detention hearing. A preliminary hearing was scheduled for Aug. 7. He faces a maximum penalty of 10 years in prison and a $250,000 fine if convicted of being a felon-in-possession of a firearm.
United States v. Sanchez, 13 CR 619
ESGAEL SANCHEZ, aka “Negro,” 27, of Chicago, was charged with being a felon-inpossession of a nine millimeter handgun on March 7, 2013. On that date, Sanchez allegedly sold a nine millimeter handgun and 12 rounds of ammunition for $500 to a confidential source. A month earlier, on Feb. 8, 2013, he allegedly sold a different nine millimeter handgun and eight rounds of ammunition for $350 to the confidential source. The affidavit further alleges that Sanchez sold three ounces of cocaine to the confidential source for $3,300 on March 29, 2013.
Sanchez remains in federal custody and waived both detention and preliminary hearings. He faces a maximum penalty of 10 years in prison and a $250,000 fine if convicted of being a felon-in-possession of a firearm.
In each case, if convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines. The public is reminded that complaints contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is being represented by Assistant United States Attorneys Matthew Burke and Peter Flanagan.
Cervantes Comlpaint
Lopez Comlpaint
Rincon Comlpaint
Sanchez ComlpaintFormer Immigration Consultant Convicted of Encouraging Illegal Immigration and Mail FraudRead the Press Release
SAN JOSE - Evelyn Sineneng-Smith was convicted of three counts of encouraging or inducing illegal immigration for private financial gain and three counts of mail fraud by a federal jury on Tuesday, July 30th, announced United States Attorney Melinda Haag. The guilty verdict followed a 13-day jury trial before The Honorable Ronald M. Whyte, U.S. District Court Judge.
Evidence at trial showed that Sineneng-Smith operated an immigration consultation business in San Jose, Calif., from 1990 to 2008. She advised foreign nationals, mainly Filipino citizens who came to the United States on visitors’ visas, to apply for a labor certification from the United States Department of Labor as path towards obtaining lawful permanent residence. She charged her victims $5,900 to file such applications all the while knowing that the law had changed, and that her clients did not qualify under existing immigration regulations to obtain lawful permanent residence. According to the testimony of several victims, Sineneng-Smith failed to inform them that they were ineligible to obtain permanent residence. In addition, Sineneng-Smith encouraged victims to overstay the time allowed under their tourist visas and work illegally in residential healthcare facilities.
Evidence at trial showed that Sineneng-Smith deposited over $3.3 million dollars in payments from clients from August 2004 through 2007.
"Those who corrupt the integrity of our nation's legal immigration system must understand there are serious consequences for those actions," said Joseph Vincent, Assistant Special Agent in Charge of Homeland Security Investigations, San Jose. "We will continue to work with our counterparts to investigate those who manipulate and exploit that system for their own personal financial gain."
Sineneng-Smith, 66, of San Jose, Calif., was indicted by a federal grand jury on July 14, 2010. She was charged with three counts of encouraging and inducing illegal immigration for private financial gain, in violation of 8 U.S.C. §§ 1324(a)(1)(A)(iv) and (B)(I), and three counts of mail fraud, in violation of 18 U.S.C. § 1341.
The sentencing of Sineneng-Smith will be scheduled on November 4, 2013, after the court considers post-trial motions. The maximum statutory penalty for each count of encouraging and inducing illegal immigration for private financial gain, in violation of 8 U.S.C. §§ 1324(a)(1)(A)(iv) and (B)(I), is 10 years imprisonment and a fine of $250,000. The maximum statutory penalty for each count of mail fraud, in violation of 18 U.S.C. § 1341, is 20 years and a fine of $250,000, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Susan Knight and Philip Guentert are the Assistant U.S. Attorneys who prosecuted the case with the assistance of Tracey Andersen and Nina Burney. The prosecution is the result of a three-year investigation by the Department of Homeland Security, Immigration and Customs Enforcement, United States Citizenship and Immigration Services, the United States Department of Labor, Internal Revenue Service - Criminal Investigation, and the United States Postal Inspection Service.
(Sineneng-Smith superseding indictment)
Former Chisholm Resident Pleads Guilty to Defrauding Customers at Classic Car Restoration CompanyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 26-year-old Michigan man, formerly of Chisholm, pleaded guilty to defrauding customers of Memory Lane Classics, a company that restored and rebuilt classic cars, out of more than $1 million. Edwin Scott Verdung pleaded guilty to one count of wire fraud and one count of transaction money laundering. Verdung, who was charged on May 14, 2013, entered his plea before United States District Judge Patrick J. Schiltz.
In his plea agreement, Verdung admitted that from April 2007 through May 2010, he took money from individuals who were in the market for classic automobiles or who brought their own vehicles into the shop to be restored or rebuilt. Despite accepting funds, Verdung failed to provide the vehicles or the restoration services promised. In some instances, he represented falsely that he had made progress in rebuilding or restoring a customer’s vehicle, when, in fact, he had done nothing along those lines. Verdung also admitted requiring some customers to make “progress” payments, providing those customers with fraudulent photographs as evidence of the progress made in restoring the vehicle.For his crimes, Verdung faces a potential maximum penalty of 20 years in federal prison for wire fraud count and 10 years in federal prison for money laundering. Judge Schiltz will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Internal Revenue Service-Criminal Investigations, Minnesota Bureau of Criminal Apprehension, and the Chisholm Police Department. It is being prosecuted by Assistant U.S. Attorney Nicole A. Engisch.
Florida Man Sentenced to 30 Years in Prison for Orchestrating a Fraud Scheme, Attempting to Murder a Witness and Murder for HireRead the Press Release
Paul S. Kruse, 60, of Jacksonville, Fla., was sentenced late yesterday to serve 30 years in prison for wire fraud, wire fraud conspiracy, attempting to murder a government witness and murder-for-hire, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Acting U.S. Attorney A. Lee Bentley III of the Middle District of Florida.
Kruse was sentenced by Senior U.S. District Judge Harvey E. Schlesinger in the Middle District of Florida. In addition to his prison term, Kruse was sentenced to serve five years of supervised release and ordered to pay a money judgment of $897,960, which represents the net proceeds of the charged criminal conduct.On Feb. 11, 2013, Kruse was found guilty by a federal jury in Jacksonville.
According to court documents, beginning in 2010, Kruse and his brother conspired to recruit and defraud a number of clients to whom they provided financial advisory services. As part of the scheme, Kruse established a sham investment firm called Yorkshire Financial Services. He and his brother convinced their clients, a number of whom were retirees, to move their savings to Yorkshire. Kruse and his brother deceptively told clients that Yorkshire had been in business for more than 30 years, had a staff of experienced securities traders, and traded in a combination of stocks, bonds and currencies appropriate for individual retirement accounts (IRAs). In reality, Kruse did not invest the investors' funds. Rather, he spent the investors’ money on luxury cars, home improvements and personal items and made hundreds of thousands of dollars in cash withdrawals. As a result of the scheme, Kruse stole $931,844 from 21 victims.
In 2011, Kruse hired a personal assistant who witnessed Kruse's conduct. The assistant reported Kruse’s conduct to the FBI, and the Yorkshire scam unraveled shortly thereafter.
In 2012, Kruse’s co-conspirator brother committed suicide. Subsequently, while Kruse was being held in pre-trial detention, Kruse hired hit men to murder his former personal assistant, who was scheduled to be a government witness. Kruse stated that he wanted the former assistant killed to both prevent her from testifying and avenge his brother’s death. Kruse also hired the hit men to rob and kill two former business partners, who Kruse contended had cheated him. Unbeknownst to Kruse, the hit men were undercover federal agents.This case was investigated by the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Mark B. Devereaux and Trial Attorney Ryan Rohlfsen of the Criminal Division’s Fraud Section.
Florida Man Sentenced to 24 Years in Prison for Conspiring to Kill Federal JudgeRead the Press Release
BROOKLYN, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Dejvid Mirkovic, 38, of Lake Worth, Florida, was sentenced by U.S. District Judge John Keenan to 24 years in prison for conspiring to murder the U.S. District Judge (the “federal judge”) who presided over the boiler room fraud conviction of Mirkovic’s coconspirator, a close business associate. Mirkovic and his coconspirator agreed to pay $40,000 to an undercover police officer, who they thought was a hit-man, to kill the federal judge as well as the Assistant U.S. Attorney (the “federal prosecutor”) who successfully handled the coconspirator’s fraud prosecution. Mirkovic paid the undercover officer $22,000 in cash as a down payment for the murders of the federal judge and the federal prosecutor.
In addition to the term of imprisonment, Judge Keenan sentenced Mirkovic to five years of supervised release and the forfeiture of over $200,000, a car and four firearms.
According to case filings and statements at Mirkovic’s guilty plea proceeding, law enforcement authorities learned of the plot in August 2012, when a confidential informant reported that Mirkovic’s coconspirator stated he wanted to torture and kill the federal judge and the federal prosecutor and asked the informant for assistance in arranging for a hit-man to carry out the murders. During the subsequent investigation, two undercover law enforcement officers, posing as hit-men, met with Mirkovic and the coconspirator numerous times at locations on Long Island, including at the Nassau County Correctional Center (“NCCC”), where the coconspirator was being held. At one of the first meetings, the coconspirator offered to pay one of the undercover officers $3,000 to assault an individual with whom the coconspirator had a financial dispute. Mirkovic then met with one of the undercover officers and paid him $1,500 as a down payment for the assault. After one of the undercover officers showed proof of the purported assault of John Doe – in fact, a staged photograph and an identification card for John Doe – Mirkovic paid the undercover officer the $1,500 balance.
Later that same day, Mirkovic again met with the undercover officer, relayed the coconspirator’s instructions to murder the federal judge and federal prosecutor, and offered $40,000 for commission of the two murders. Mirkovic also gave the undercover officer a $12,000 down payment and paid an additional $10,000 the following week. Mirkovic promised payment of the final $18,000 upon confirmation of the murders. At the time of Mirkovic’s arrest at his home in Lake Worth, Florida, law enforcement officers recovered $18,000 in cash and a loaded 9mm semi-automatic handgun.
In pleading guilty on March 13, 2013, Mirkovic admitted under oath that he agreed to kill the federal judge in retaliation for the performance of the judge’s duties. Mirkovic further admitted under oath that he traveled to the Eastern District of New York in the fall of 2012 and made a down payment for the murder.
The sentence was the latest development in an investigation handled by Special Agents of the Federal Bureau of Investigation, New York Office, under the direction of Assistant Director-in-Charge George Venizelos. The government’s case is being prosecuted by Assistant United States Attorneys Marshall L. Miller, Una A. Dean, and Brian Morris of the Eastern District of New York, under the supervision of U.S. Attorney William J. Hochul of the Western District of New York.Florida Man Sentenced to 24 Years in Prison for Conspiring to Kill Federal JudgeRead the Press Release
BROOKLYN, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Dejvid Mirkovic, 38, of Lake Worth, Florida, was sentenced by U.S. District Judge John Keenan to 24 years in prison for conspiring to murder the U.S. District Judge (the “federal judge”) who presided over the boiler room fraud conviction of Mirkovic’s coconspirator, a close business associate. Mirkovic and his coconspirator agreed to pay $40,000 to an undercover police officer, who they thought was a hit-man, to kill the federal judge as well as the Assistant U.S. Attorney (the “federal prosecutor”) who successfully handled the coconspirator’s fraud prosecution. Mirkovic paid the undercover officer $22,000 in cash as a down payment for the murders of the federal judge and the federal prosecutor.
In addition to the term of imprisonment, Judge Keenan sentenced Mirkovic to five years of supervised release and the forfeiture of over $200,000, a car and four firearms.
According to case filings and statements at Mirkovic’s guilty plea proceeding, law enforcement authorities learned of the plot in August 2012, when a confidential informant reported that Mirkovic’s coconspirator stated he wanted to torture and kill the federal judge and the federal prosecutor and asked the informant for assistance in arranging for a hit-man to carry out the murders. During the subsequent investigation, two undercover law enforcement officers, posing as hit-men, met with Mirkovic and the coconspirator numerous times at locations on Long Island, including at the Nassau County Correctional Center (“NCCC”), where the coconspirator was being held. At one of the first meetings, the coconspirator offered to pay one of the undercover officers $3,000 to assault an individual with whom the coconspirator had a financial dispute. Mirkovic then met with one of the undercover officers and paid him $1,500 as a down payment for the assault. After one of the undercover officers showed proof of the purported assault of John Doe – in fact, a staged photograph and an identification card for John Doe – Mirkovic paid the undercover officer the $1,500 balance.
Later that same day, Mirkovic again met with the undercover officer, relayed the coconspirator’s instructions to murder the federal judge and federal prosecutor, and offered $40,000 for commission of the two murders. Mirkovic also gave the undercover officer a $12,000 down payment and paid an additional $10,000 the following week. Mirkovic promised payment of the final $18,000 upon confirmation of the murders. At the time of Mirkovic’s arrest at his home in Lake Worth, Florida, law enforcement officers recovered $18,000 in cash and a loaded 9mm semi-automatic handgun.
In pleading guilty on March 13, 2013, Mirkovic admitted under oath that he agreed to kill the federal judge in retaliation for the performance of the judge’s duties. Mirkovic further admitted under oath that he traveled to the Eastern District of New York in the fall of 2012 and made a down payment for the murder.
The sentence was the latest development in an investigation handled by Special Agents of the Federal Bureau of Investigation, New York Office, under the direction of Assistant Director-in-Charge George Venizelos. The government’s case is being prosecuted by Assistant United States Attorneys Marshall L. Miller, Una A. Dean, and Brian Morris of the Eastern District of New York, under the supervision of U.S. Attorney William J. Hochul of the Western District of New York.
Federal Jury Finds Two Men Guilty of Participating in Las Cruces-Based Methamphetamine Trafficking RingRead the Press Release
ALBUQUERQUE – Late this afternoon a federal jury in Las Cruces found Ernest Joe Marquez, 44, of Las Cruces, N.M., and Melchor Arroyos, 52, of El Paso, Texas, guilty on methamphetamine trafficking charges after a three-day trial. The guilty verdicts were announced by U.S. Attorney Kenneth J. Gonzales, Joseph M. Arabit, Special Agent in Charge of the DEA’s El Paso Division, and Thomas G. Atteberry, Special Agent in Charge of the ATF’s Phoenix Division.
Marquez was one of ten defendants charged in a 16-count indictment filed in May 2012. Marquez was arrested on May 24, 2013, as was Arroyos, who was separately charged in a criminal complaint. A superseding indictment was filed in Oct. 2012, charging Marquez, Arroyo and eight co-defendants with participating in a conspiracy to possess methamphetamine with intent to distribute from Jan. 2012 through May 2012. The superseding indictment alleged that members of the conspiracy transported methamphetamine from El Paso, Texas, and Phoenix, Ariz. to Doña Ana County, N.M., where the methamphetamine was distributed to local drug dealers.
Before the superseding indictment was filed, one defendant entered a guilty plea to a charge in the original indictment. Thereafter, eight other defendants entered guilty pleas to various counts in the superseding indictment. Marquez and Arroyos elected to proceed to trial on the following counts of the superseding indictment: Count 1, charging both men with conspiracy to possess methamphetamine with intent to distribute; Count 13, charging Marquez with using a communication device (a telephone) to facilitate a drug trafficking crime; Count 16, charging Marquez with possession of methamphetamine with intent to distribute; and Count 17, charging Arroyos with possession of methamphetamine with intent to distribute.
Trial commenced on July 29, 2013, and concluded late this afternoon when the jury returned verdicts of guilty against Marquez and Arroyos on all counts against them. The evidence at trial established that in March 2012, the DEA received court authorization to conduct a wiretap investigation and listen to communications occurring over Marquez’s telephone. During the investigation, the investigators learned that Marquez was conspiring with others to bring large quantities of methamphetamine from Texas and Arizona to New Mexico so that the drugs could be divided up, repackaged, and sold on the streets of Las Cruces. Among other things, the investigation revealed that in April 2012, Marquez sent two women to Arizona to pick up a pound of methamphetamine. Through intercepted conversations, the investigators learned that, after taking possession of the methamphetamine, Marquez sold the methamphetamine to local drug dealers.
The investigation also revealed that in May 2012, Marquez made arrangements for the delivery of another pound of methamphetamine. This time, Arroyos was responsible for delivering the methamphetamine. After Arroyos’ initial attempt to deliver the methamphetamine to Marquez was unsuccessful, the two men had a telephone conversation during which they made arrangements for Arroyos to deliver the methamphetamine to Marquez at his home. Before Arroyos could make the delivery, he was arrested by an officer who executed a traffic stop on Arroyos’ vehicle and found a pound of methamphetamine hidden in the engine area of the vehicle.
The jury deliberated for approximately four hours before returning guilty verdicts against Marquez and Arroyos.
At sentencing, Marquez and Arroyos each faces a minimum of ten years to a maximum of life imprisonment and a $10 million fine. Marquez and Arroyos have been in federal custody since their arrests in May 2012, and they remain detained pending their sentencing hearings which have yet to be scheduled.
The case was investigated by the Las Cruces offices of the DEA and ATF, with assistance from the U.S. Border Patrol, Hatch Police Department, Motor Transportation Division of the New Mexico Department of Public Safety, New Mexico State Police, Las Cruces/Doña Ana County Metro Narcotics Agency, and Las Cruces Police Department Gang Task Force. It is being prosecuted by Assistant U.S. Attorneys Marisa Lizarraga, Aaron O. Jordan and Sarah M. Davenport.
The case was the result of a five-month investigation led by the DEA and ATF, which was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program. OCDETF is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Essex Man Pleads Guilty to Producing Child PornographyRead the Press Release
Baltimore, Maryland – Robert Marzola, age 31, of Essex, Maryland, pleaded guilty today to producing child pornography.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, between December 2011 and July 2012, Marzola sexually abused a minor male at his home to produce images of himself and the minor engaged in sexually explicit conduct. Marzola saved the images on his laptop. Marzola told the boy not to tell anyone about their conduct, which Marzola described to the boy as a game.
In June 2012, Baltimore County police accessed a peer to peer network and saw that Marzola had files containing child pornography available for download. Police executed a search warrant at Marzola’s residence on July 19, 2012 and seized a camera, desk top computer, laptop computer and an SD card. The images and videos that Marzola had previously produced of the boy were found on his laptop, along with 18 additional videos of children engaged in sexual conduct.
As part of his plea agreement, Marzola must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Marzola faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 in prison followed by up to lifetime of supervised release. U.S. District Judge Ellen L. Hollander has scheduled sentencing for November 7, 2013 at 10:00 a.m.
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 "resources" tab on the left of the page.
This investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel overseas for sex with minors, Internet child pornographers, criminal alien sex offenders and child sex traffickers. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended the Baltimore HSI, FBI, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul Budlow, who prosecuted the case.
Eleven Individuals Sentenced During the Month of July for Federal Supervised Release ViolationsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
WHEELING, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that during the month of July, 2013, eleven (11) individuals had their supervised release revoked for violating terms and conditions imposed by the United States District Court.
WHEELING DIVISION REVOCATIONS
(Judge Frederick P. Stamp, Jr.)
JOSEPH BURT, age 35, of Bellaire, Ohio, was sentenced to 24 months imprisonment for testing positive for the use of cocaine and marijuana on six separate occasions. BURT was originally sentenced on April 8, 2002, to 148 months imprisonment and five years of supervised release for conspiracy to distribute crack cocaine. On January 9, 2009, BURT’s sentence was reduced to 120 months pursuant to the crack re-sentencing guidelines. BURT was remanded to the custody of the United States Marshal pending designation to a Federal institution.
DAVID MCGOWAN, age 46, of Follansbee, West Virginia, was sentenced to two months imprisonment for possession and use of oxycodone. MCGOWAN was originally sentenced on July 18, 2011, to one day imprisonment and three years of supervised release for the distribution of heroin within 1,000 feet of a protected location. MCGOWAN will self- report to the designated Federal institution on August 15, 2013.
The United States was represented at the Wheeling revocation hearings by Assistant
United States Attorneys John C. Parr and Randolph J. Bernard.CLARKSBURG DIVISION REVOCATIONS (Judge Irene M. Keeley)
MICHAEL LOWTHER, age 33, of Clarksburg, West Virginia, was sentenced to 19 months imprisonment for domestic battery arrest for 3rd offense, testing positive for the use of cocaine, failure to consistently attend substance abuse counseling sessions, traveling outside the Northern District of West Virginia without approval, and, failure to notify probation officer of contact with law enforcement. LOWTHER was originally sentenced on July 30, 2009, to 21 months imprisonment and three years of supervised release for possession, sale and disposal of a stolen firearm. On July 26, 2012, LOWTHER was sentenced to 5 months imprisonment and 31 months of supervised release for violations of his supervised release. LOWTHER was remanded to the custody of the United States Marshal pending designation to a Federal institution.MICHAEL PAUL ATCHISON, age 33, of Apache Junction, Arizona, was sentenced to 15 months imprisonment for illegal use of a controlled substance and termination from residential re-entry center program. ATCHISON was originally sentenced on April 20, 2007, to 37 months imprisonment and six years of supervised release for the distribution of crack cocaine within 1,000 feet of a protected location. On March 13, 2008, sentence was reduced to 30 months pursuant to the crack re-sentencing guidelines. On May 18, 2012, ATCHISON was sentenced to 12 months and 1 day imprisonment and 5 years of supervised release for violations of his supervised release. ATCHISON was remanded to the custody of the United States Marshal pending designation to a Federal institution.
HOWARD M. ENGLISH, age 24, of Fairmont, West Virginia, was sentenced to 6 months imprisonment to be followed by 66 months of supervised release for traveling outside the Northern District of West Virginia without approval of the probation officer. ENGLISH was originally sentenced on January 22, 2010, to 46 months imprisonment and six years of supervised release for the distribution of crack cocaine within 1,000 feet of a protected location. ENGLISH will self-report to the designated Federal institution on August 19, 2013.
JAMES ARTHUR STEVENS, age 24, of Morgantown, West Virginia, was sentenced to 6 months imprisonment to be followed by 54 months of supervised release for the use of controlled substance, failure to complete drug counseling and treatment and committing new state crimes. STEVENS will be on home detention with electronic monitoring upon release until he completes a long-term drug treatment program. STEVENS was originally sentenced on July 25, 2011, to 21 months imprisonment and six years of supervised release for distribution of heroin within 1,000 feet of a protected location. STEVENS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the Clarksburg revocation hearings by Assistant
United States Attorneys Shawn A. Morgan, Stephen D. Warner and Zelda E. Wesley.MARTINSBURG DIVISION REVOCATIONS (Judge Gina M. Groh)
DAWN WILEY, age 24, of Charles Town, West Virginia, was sentenced to 15 months imprisonment to be followed by 30 months of supervised release for new felony charges of conspiracy to distribute crack cocaine, associating with a person engaged in criminal activity, and failure to notify probation officer of change in residence. WILEY was originally sentenced on December 13, 2009, to 27 months imprisonment and three years of supervised release for the possession with intent to distribute cocaine. On August 14, 2012, WILEY was sentenced to 6 months imprisonment and 30 months of supervised release for violations of her supervised release. WILEY was remanded to the custody of the United States Marshal pending designation to a Federal institution.CLYDE EVERETT BROWN, JR., age 41, of Martinsburg, West Virginia, was sentenced to 8 months imprisonment to be followed by 28 months of supervised release for a charge of domestic assault, failure to report law enforcement contact to probation officer, and excessive use of alcohol. BROWN was originally sentenced on March 13, 2003, to 151 months imprisonment and three years of supervised release for the distribution of crack cocaine. On February 2, 2009, BROWN’s sentence was reduced to 130 months pursuant to the crack re- sentencing guidelines. BROWN was remanded to the custody of the United States Marshal pending designation to a Federal institution.
SALEM ISRAEL BANKS, age 41, of Martinsburg, was sentenced to 7 months imprisonment to be followed by 12 months of supervised release for testing positive for the use of marijuana; admitted use of marijuana and cocaine; using alcohol to excess; and, charge of assault, harassment, disorderly conduct and driving on a suspended license. BANKS was originally sentenced on November 20, 2007, to 57 months imprisonment and three years of supervised release for the distribution of crack cocaine. BANKS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
KELLY MCCOY, age 25, of Winchester, Virginia, was sentenced to 6 months imprisonment to be followed by 12 months of supervised release for possession and use of heroin; and traveling outside the Northern District of West Virginia without approval of the probation officer. MCCOY was originally sentenced on October 28, 2008, to 18 months imprisonment and three years of supervised release for conspiracy to distribute cocaine. MCCOY was remanded to the custody of the United States Marshal pending designation to a Federal institution.
MICHAEL NORRIS, age 36, of Martinsburg, was sentenced to 5 months imprisonment to be followed by 115 months of supervised release for testing positive for the use of marijuana on three occasions. NORRIS was originally sentenced on July 5, 2012, to 15 months imprisonment and 10 years of supervised release for failure to register as a sex offender. NORRIS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the Martinsburg revocation hearings by Assistant
United States Attorney Paul T. Camilletti.The United States Probation Office carries out probation and pretrial services functions throughout the Northern District of West Virginia. With locations in Wheeling, Clarksburg, Martinsburg, and Elkins, the office works to assist the federal courts in the fair administration of justice, to protect the community, and to bring about long-term positive change in individuals under supervision. Jeff Givens is the Chief Probation Officer for the Northern District.
East Hampton Man Who Placed Fake Bomb in Front of East Hampton Middle School Is SentencedRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that SEAN DORAN, 21, of East Hampton, was sentenced today by Chief United States District Judge Alvin W. Thompson in Hartford to three years of probation for placing a fake bomb device at the front doors of East Hampton Middle School on January 12, 2013. DORAN also was ordered to perform 150 hours of community service and pay a $1,500 fine.
According to court documents and statements made in court, at approximately 8:00 a.m. on January 12, 2013, custodians at the East Hampton Middle School arrived to find a device leaning against the front doors of the school. The device was a rectangular box, approximately 12 inches by eight inches by four inches in size, taped together with orange and red duct tape, and a white egg timer on top. School employees contacted the East Hampton Police Department, which subsequently notified the Connecticut State Police Bomb Squad. The Bomb Squad arrived on the scene and determined that the device did not contain any explosives.
A review of the East Hampton Middle School’s surveillance video revealed that DORAN placed the fake bomb at the doors of the school at approximately 1:47 a.m. that day.
On April 22, 2013, DORAN pleaded guilty to one count of intentionally conveying false or misleading information and a hoax.
This matter was investigated by the Federal Bureau of Investigation’s JTTF, the East Hampton Police Department, the New Haven Police Department and the Connecticut State Police. The case was prosecuted by Special Assistant United States Attorney Anjna R. Kapoor.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Drug Dealer Sentenced for Cocaine Distribution and Money Laundering ConspiracyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced the sentencing of Deldrick D. Jackson, 37, a resident of metro Atlanta, Georgia, July 30, 2013, in Macon, Georgia, before the Honorable Marc T. Treadwell, United States District Judge for the Middle District of Georgia.
Judge Treadwell sentenced Mr. Jackson to serve one hundred thirty (130) months imprisonment, followed by four (4) years supervised release, and a $200.00 mandatory assessment fee.
In entering his plea of guilty, Mr. Jackson admitted that he was involved in a conspiracy to distribute more than 5 kilograms, but less than 15 kilograms of cocaine, to a drug dealer in the Macon, Georgia area. Court documents revealed that Mr. Jackson used a courier to deliver the kilograms of cocaine to Macon. The courier would accept the payments for the illegal drugs on behalf of Mr. Jackson and then return the money to him in metro Atlanta. During his plea, Mr. Jackson also admitted to participating in a money laundering conspiracy which was a result of him receiving the proceeds from illegal drug sales and then using the proceeds to purchase additional cocaine to continue his unlawful drug distribution enterprise.
“This case is an example of what can be accomplished when law enforcement agencies, in this instance the Drug Enforcement Administration, the Internal Revenue Service and the Georgia Bureau of Investigation, work together to get a drug dealer off the streets. At least for the next 130 months, Mr. Jackson will not be polluting our communities with cocaine,” said U.S. Attorney Michael Moore.
“The illegal distribution of cocaine is a plague to our communities in Georgia, and the Drug Enforcement Administration values our strong partnership with the United States Attorney’s Office for the Middle District of Georgia, the Internal Revenue Service, and the Georgia Bureau of Investigation that made the dismantlement of this drug trafficking conspiracy possible,” said Harry S. Sommers, Special Agent in Charge, Drug Enforcement Administration, Atlanta Field Division.
“The attack on money laundering is an essential front in the war on narcotics,” stated Veronica Hyman-Pillot, Special Agent in Charge, Internal Revenue Service Criminal Investigation. “We are proud to have contributed our financial expertise in order to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
The case was investigated by the Drug Enforcement Administration, Internal Revenue Service Criminal Investigation, and the Georgia Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Verda Colvin.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Drug Dealer SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Bacari McCarthren, 37, of Orlando, Florida, was sentenced on July 31, 2013 by Senior U.S. District Judge Hugh Lawson in Valdosta, Georgia to 240 months imprisonment, to be followed by three (3) years supervised release, after pleading guilty to Possession with Intent to Distribute Cocaine.
In entering his plea of guilty, Mr. McCarthren admitted that on August 16, 2012, he fled across the state line from Florida into Georgia at speeds in excess of 125 mph, with his car at times crossing the median into oncoming traffic in an attempt to elude the police. At various points, the car driven by Mr. McCarthren nearly crashed into both civilian and police vehicles before ultimately being forcibly disabled by law enforcement. A subsequent search of Mr. McCarthren’s car revealed a plastic wrapped package concealed behind the dashboard containing 84.8 grams of cocaine, which was seized and tested by the Drug Enforcement Administration.
“A drug dealer is bad enough, but a drug dealer who puts the public in harm’s way while running from the law, that’s inexcusable. Mr. McCarthren put drugs in our communities and danger on our streets, and I think it is fitting that his next ride on the public roadways won’t be for twenty years,” said U.S. Attorney Michael Moore.
“Mr. McCarthren demonstrated a reckless disregard for public safety in furtherance of his drug trafficking activities and the Drug Enforcement Administration is grateful for our partnership with the Lowndes County Sheriff’s Office and the Hamilton County Sheriff’s Office that resulted in the removal Mr. McCarthren from our streets,” said Harry S. Sommers, Special Agent in Charge, Drug Enforcement Administration, Atlanta Field Division.
“The law abiding citizens of this community are safer because of yesterday’s sentence which will ensure the incarceration of Mr. McCarthren and contribute to the restoration of order and peace to this area,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Christopher Shaefer.
The case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lowndes County Sheriff’s Office, and the Hamilton County Sheriff’s Office in Jasper, Florida. Assistant United States Attorney Peter Leary handled the prosecution 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.
Djanson Convicted by Jury of 3 Counts of Providing False InformationRead the Press Release
ALEXANDRIA, Va. – Kwame Essel Djanson, a/k/a Samuel Kofi Essel, a/k/a Quarmey Gyanson Essel, age 47, of Worcester, Ma (previously of Alexandria, Va) was convicted today by a federal jury of providing false information to naturalize, obtain a passport, and to obtain a firearm.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement after the verdict was accepted by United States District Judge Liam O’Grady.
Djanson faces a potential maximum penalty of 25 years when he is sentenced on November 1, 2013.
Djanson was indicted on April 18, 2013, by a federal grand jury sitting in Alexandria, Va. on charges that he had committed fraud to naturalize, obtain a passport and procure a firearm. According to court records and evidence at trial, Djanson created a false identity as “Samuel Kofi Essel” to win a diversity lottery visa that allowed him to enter the United States and adjust to lawful permanent resident status. He applied for naturalization under the Immigration and Naturalization Act and an Executive Order that allowed for stream-lined provisions for military personnel; he also sought to change his name as part of the naturalization. On his naturalization application, and in an interview, he provided false information about his legal name and his birthdate, did not provide his previous name, and did not admit that he had provided misleading information to a U.S. official to obtain an immigration benefit. Pursuant to an order by U.S. District Court Judge Henry Coke Morgan, Jr., in Norfolk, Va., the defendant became a U.S. citizen and changed his name to Quarmey Gyanson Essel in September 2003. In October 2003, the defendant provided false information about his date of birth in an application for a U.S. Passport and received a passport that month. In 2010, the defendant attended the Nation’s Gun Show at the Dulles Expo Center in Chantilly, Va., where he filled out an ATF Form 4473 and included a false date of birth as part of a transaction to purchase a Smith & Wesson 9 millimeter pistol.This case was investigated by the Department of State’s Diplomatic Security Service. Special Assistant United States Attorney Dina Finkel, Special Assistant United States Attorney Jonathan Keim, and Assistant United States Attorney Gene Rossi 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.District Man Sentenced to 52 Years in Prison for First-Degree Felony Murder and Other Charges in Killing of 18-Year-Old Latisha FrazierDefendant Among Seven People Convicted in CaseRead the Press Release
WASHINGTON – Johnnie Sweet, 19, of Washington, D.C., was sentenced today to 52 years in prison for first-degree felony murder and other charges in the August 2010 kidnapping and slaying of 18-year-old Latisha Frazier, announced U.S. Attorney Ronald C. Machen Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Sweet was found guilty by a jury in April 2013, following a trial in the Superior Court of the District of Columbia, of first-degree felony murder with aggravating circumstances; first-degree premeditated murder with aggravating circumstances; kidnapping, and tampering with physical evidence. He was sentenced by the Honorable Russell F. Canan.
According to the government’s evidence, Sweet was one of the leaders of a group of six young men and women who took part in the murder of Ms. Frazier.
Ms. Frazier vanished on Aug. 2, 2010. For months, her family relentlessly sought to find her, passing out flyers and contacting local news stations to publicize her disappearance. In late January 2011, one witness finally stepped forward and contacted the Metropolitan Police Department, revealing the truth of Ms. Frazier’s whereabouts.
On the day of her disappearance, the government’s evidence showed, Ms. Frazier had been brutally murdered by a group of six young men and women (ages 16 to 23), all of whom she believed to be her friends. The group had suspected - with little evidence - that Ms. Frazier had stolen about $900 from Sweet. Sweet recruited others and exacted a plan of revenge in which they would call her over to an apartment where they claimed to be socializing.
When Ms. Frazier arrived at the apartment in the 1700 block of Trenton Place SE, the group took her to a small bedroom where Sweet and others punched, kicked, and stomped her all over her body. Ignoring her pleas for them to stop, they bound her in duct tape, taped a pillowcase over her head so she could not scream, and shoved her in a small, dark closet. When she screamed and moaned, one of the members of the group placed her in a sleeper hold to “put her to sleep.” Later, the group discovered that she had died.
To dispose of the body, Sweet helped carry her to the bathtub, where he and his friends attempted to dismember her. That evening, Ms. Frazier’s body was thrown into a dumpster, and it is now believed to be somewhere in one or two landfills in rural Virginia.
Of a total of seven people charged with various offenses, six former co-defendants have pled guilty. They include Brian Gaither, 25, who has been sentenced to a 32-year prison term after pleading guilty to first-degree murder; Laurence Kamal Hassan, 24, who has been sentenced to 18 years in prison for second-degree murder and kidnapping; Cinthya Proctor, 21, who has been sentenced to 21 years in prison for second-degree murder, kidnapping and conspiracy to commit evidence tampering; Anneka Nelson, 19, who pled guilty to second-degree murder and kidnapping; Lanee Bell, 20, who pled guilty to kidnapping, and Antoine McCullough, 27, who pled guilty to conspiracy to commit evidence tampering. Bell, Nelson and McCullough are awaiting sentencing.
In announcing the sentence, U.S. Attorney Machen and Chief Lanier praised the work of those who investigated the case for the Metropolitan Police Department (MPD), including detectives from the Major Case/Cold Case Squad and the Seventh District.
They also expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Larry Grasso of the Criminal Intelligence Unit, Victim/Witness Advocate Marcia Rinker, and Paralegal Specialists Kwasi Fields, Phaylyn Hunt, and Angela Lawrence. Finally, they thanked Assistant U.S. Attorneys Christopher R. Kavanaugh and Melinda Williams, who prosecuted the case.
13-273District Man Pleads Guilty to Aggravated Assault and Other Charges in Recent Car Crash in Southeast Washington-Defendant, Eluding Police, Was Traveling More Than 100 MPH-Read the Press Release
WASHINGTON – Noel Warner, 28, of Washington, D.C., has pled guilty to charges in an incident in which he fled from police by driving more than 100 mph before hitting another vehicle and injuring its driver, U.S. Attorney Ronald C. Machen Jr. announced today.
Warner pled guilty on July 30, 2013, in the Superior Court of the District of Columbia, to charges of aggravated assault, fleeing a law enforcement officer, and unlawful possession with the intent to distribute marijuana. The Honorable Rhonda Reid Winston scheduled sentencing for Oct. 1, 2013.
According to the government’s evidence, just before midnight on June 4, 2013, a U.S. Park Police Officer observed a silver Honda Accord with dark-tinted windows traveling about 45 mph in a 25 mph zone. The officer, driving a marked police vehicle, activated his emergency equipment. Warner, however, accelerated about a quarter-mile before striking an oncoming sedan in the 1300 block of Southern Avenue SE. The driver of the sedan, on his way home from work, was taken to a hospital after suffering a broken arm and injuries to his head and legs.
Warner’s car, which was equipped with a speedometer that would lock on impact, displayed a speed at impact of 85 mph, 60 mph over the posted speed limit. A further review of the black box of the engine revealed that the top speed of the car in the moments before impact was 104 mph - 79 mph over the posted speed limit. Officers found marijuana in Warner’s car, along with a drug grinder, $100 in fraudulent U.S. currency, and open bottles of alcohol.
In announcing the plea, U.S. Attorney Machen commended the work of the U.S. Park Police, as well as the Metropolitan Police Department’s Major Crash Unit, which investigated the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Lynette Briggs and Todd McClelland and Investigative Analyst Sharon Johnson. Finally, he expressed appreciation for the efforts of Assistant U.S. Attorney Philip Selden, of the Felony Major Crimes Section, who is prosecuting the matter.
13-272Dawson Springs, Kentucky Felon Sentenced to 30 Months in Prison for Possession of A Firearm and AmmunitionRead the Press Release
– Formerly convicted of two counts of 1st degree manslaughter
BOWLING GREEN, Ky. – A convicted felon, who resided in Dawson Springs, Kentucky was sentenced in United States District Court this week, by Senior Judge Thomas B. Russell, to 30 months in federal prison, followed by three years of supervised release, for illegal possession of a firearm and ammunition, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Kevin Fitzgerald, age 49, pleaded guilty to a two count federal superseding indictment, returned by a federal grand jury meeting in Bowling Green, Kentucky on February 13, 2013. The charges included being a convicted felon with possession of ammunition, including one hundred rounds of Federal brand 12-gauge shotgun ammunition, one hundred rounds of Federal brand 20-gauge shotgun ammunition, and 20 rounds of Federal brand .30-06 shotgun ammunition. Further, Fitzgerald pleaded guilty to possession of a Ranger, 12-gauge double-barreled shotgun and eight rounds of Winchester/Western brand 12-gauge shotgun ammunition.
According to an Affidavit attached to a felony criminal complaint, Dawson Springs, Kentucky police executed a search warrant on December 19, 2011, on a residence where Fitzgerald had been residing, and during the search, officers located the Ranger, 12 gauge double-barreled shotgun and ammunition in a bedroom. In court yesterday, Fitzgerald admitted to owning the shotgun as well as the Federal brand ammunition, located on October 21, 2012 in Warren County, Kentucky.
Fitzgerald is a convicted felon, having been convicted of two counts of manslaughter in the first degree, in case number 85-CR-036 in Carroll Circuit Court, Carrollton, Kentucky, on or about July 7, 1986. He was sentenced to serve 40 years in prison.
This case was prosecuted by Special Assistant United States Attorney Micah R. Reyner and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Dawson Springs, Kentucky Police Department.