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Friday 14 June 2013
Former Official of Teamsters Local 337 Indicted on ConspiracyAnd Bribery ChargesRead the Press Release
A former business agent and trustee of Teamsters Local 337 was indicted yesterday by a federal grand jury in Detroit on bribery and conspiracy charges, announced United States Attorney Barbara L. McQuade. McQuade was joined in the announcement by Special Agent in Charge James Vanderberg, Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and Patrick Kawa, District Supervisor, Department of Labor, Employee Benefits Security Administration.
Indicted was Michael Townsend, age 68 of Dearborn Heights, Michigan.
According to the indictment, from April 2003 through August 2008, Townsend conspired with others to prevent Teamsters Local 337 from organizing the employees of LaGrasso Brothers Produce, Inc. by creating a front company known as Sam LaGrasso Produce Company. Townsend and his co-conspirators would then use LaGrasso family members and managers of LaGrasso Brothers Produce, Inc. to pose as employees of Sam LaGrasso Produce Company and enroll them as union members of Teamsters Local 337. Townsend and his co-conspirators would then enter into collective bargaining agreements between Local 337 and Sam LaGrasso Produce Company to create the appearance that the employees of LaGrasso Brothers Produce, Inc were unionized. In exchange for his actions in preventing the unionization of employees of LaGrasso Brothers Produce, by Teamsters Local 337, Townsend took bribes in the form of cash payments from LaGrasso Brothers Produce, Inc.
"This defendant was a union official who was entrusted to help working people organize," McQuade said. "He betrayed the Teamsters and workers for his own profit. We are seeking to hold him and the company accountable for their conduct."
Townsend is facing a maximum of five years in prison and a fine of up to $250,000.
On January 10, 2013, Sam LaGrasso Produce, Inc. pleaded guilty to a one count Information charging that it made and agreed to make prohibited payments to a labor official. The company is awaiting sentencing where it faces a fine of $6,300,000 up to $12,600,000. The plea agreement contains a cooperation agreement requiring corporate officers to assist in the investigation and prosecution of others and the possibility of a reduced sentence based on that cooperation.
An indictment is only a charge and it is the government’s responsibility to prove guilty beyond a reasonable doubt.
The case was investigated by agents and officers of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations and the Department of Labor, Employee Benefits Security Administration. It is being prosecuted by Assistant United States Attorneys David Morris and Mark Chutkow.Former New York State Senate Majority Leader Pedro Espada, Jr. Sentenced to Five Years’ ImprisonmentRead the Press Release
Earlier today, Pedro Espada, Jr. was sentenced before Judge Frederic Block in U.S. District Court in Brooklyn, New York, to five years’ imprisonment, to be followed by three years of supervised release, for theft of federal funds from Bronx-based non-profit healthcare clinics, and lying on his 2005 personal tax return. As part of that sentence, Judge Block ordered Espada to serve 100 hours of community service, restitution to the Internal Revenue Service in the amount of $118,531, restitution to the victims of his thefts in an amount to be determined, and forfeiture of $368,088. The court remanded Espada to the custody of the Bureau of Prisons. Espada is a former New York State Senator for the 33rd Senate District in the Bronx, who served as the New York State Senate Majority Leader from 2009 to 2010.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Toni Weirauch, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS).
“The people of the Bronx trusted Pedro Espada, Jr. to have their best interests at heart. Instead, he abused that trust to the tune of more than half a million dollars. Under obligation to use the funds he received for the benefit of people sorely in need of quality health care, he chose instead to benefit himself and his family at their expense. Espada embezzled funds to finance his personal lifestyle and lavish gifts on friends and family members at the expense of taxpayers and underprivileged members of the Bronx community who were deprived of needed health services and medical equipment. He continued his campaign of lying and fraud on his tax returns,” stated United States Attorney Lynch. “Espada has finally been held to account for his crimes.” Ms. Lynch expressed her grateful appreciation to the FBI and IRS, the agencies responsible for leading the government’s investigation, and thanked the Office of New York State Attorney General Eric T. Schneiderman for its assistance.
On May 14, 2012, a federal jury in Brooklyn returned a guilty verdict against Espada on four counts of stealing from non-profit medical clinics in the Bronx that received federal funding. On October 12, 2012, Espada pled guilty to making false statements on his 2005 personal tax return and agreed not to appeal or otherwise challenge the jury’s verdict. That same day, Espada’s son and co-defendant, Pedro Gautier Espada, pled guilty to guilty to one count of stealing federal funding from non-profit medical clinics and one count of failing to file a tax return in 2009, and his sentencing has been scheduled for June 18, 2013, also before Judge Block.
FBI Assistant Director-in-Charge Venizelos stated, “Over thirty years ago, Pedro Espada, Jr. helped establish the Soundview Health Center, but his own greed and self-dealing undermined that good work. Espada’s embezzlement of federal funds diverted money meant to serve the health needs of the people of the South Bronx. In lining his own pockets, he betrayed those people and stole from U.S. taxpayers in the process. There is a price to pay for these betrayals.”
The successful outcome of the collaborative effort in this investigation demon- strates the government’s resolve in investigating and prosecuting public corruption. Today’s sentences mark the end of a long period of criminal activity that harmed the patients of the not-for-profit clinics, who depended on the services the clinics provided and law abiding American taxpayers, who have to pick up the slack whenever others deliberately do not pay their fair share. IRS Criminal Investigation is proud of its partnership with the FBI and the U.S. Attorney’s Office,” stated IRS Special Agent-in-Charge Weirauch.
The government’s case was prosecuted by Assistant United States Attorneys Todd Kaminsky, Carolyn Pokorny and Claire Kedeshian.
The Defendants
PEDRO ESPADA, JR.
Age: 58
Mamaroneck, NYPEDRO GAUTIER ESPADA
Age: 39
Fairfield, CTE.D.N.Y. Docket No. CR-10-985 (FB)
Former GSA Property Manager Pleads Guilty to Making False Statements and Witness TamperingRead the Press Release
LAS VEGAS – A former assistant property manager for the General Services Administration (GSA) in Las Vegas who oversaw the federal courthouse, pleaded guilty today to making false statements to federal agents and witness tampering, announced André Birotte, Jr., United States Attorney for the Central District of California.
Steven M. Underhill, 58, of Las Vegas, Nev., entered his guilty pleas before U.S. District Judge Andrew P. Gordon, and is scheduled to be sentenced on Sept. 12, 2013, at 9:00 a.m.
According to the plea agreement, in about 2010, GSA’s Office of the Inspector General (GSA-OIG) initiated an investigation into alleged improprieties involving the janitorial contract for the Lloyd George Federal Courthouse in Las Vegas. The allegations included claims that Underhill, who was GSA’s Assistant Property Manager at the courthouse, had an undisclosed and improper relationship with one of the janitorial company’s employees. The allegations included claims that as a result of the janitorial employee’s decision to end her relationship with Underhill, Underhill began giving the company unsatisfactory ratings, which impacted its bid to renew the contract. In April and May 2011, when investigators interviewed Underhill about the allegations, Underhill lied to them by denying that he had a relationship with the employee and that he was living with her, when he had in fact been in a relationship with her for a number of years, and had lived with her and her mother. After Underhill’s interviews with the law enforcement investigators, Underhill told the employee to deny everything about their relationship because he would be fired. Underhill continued to contact the employee over the next 14 months by telephone and text, and threatened her with retaliation and public embarrassment if she cooperated with authorities.
Underhill faces up to five years in prison on the false statements charge and up to 20 years in prison on the witness tampering charge, as well as fines of up to $250,000 on each charge. He is free on a personal recognizance bond while awaiting sentencing.
This case was investigated by the Office of the Inspector General for GSA, the Las Vegas Metropolitan Police Department, and prosecuted by Assistant U.S. Attorneys Kathryn C. Newman of the District of Nevada and Lawrence S. Middleton of the Central District of California.Former Corrections Officer Pleads Guilty to Bribery Charge-Admits Taking Money in Return for Smuggling Drugs into D.C. Jail-Read the Press Release
WASHINGTON – Jonathan Womble, 36, a former corrections officer at the District of Columbia Jail, pled guilty today to a federal charge of conspiracy to commit bribery for accepting $400 in cash in return for smuggling drugs and other contraband into the facility, announced U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Womble pled guilty in the U.S. District Court for the District of Columbia. The Honorable Reggie B. Walton ordered him detained pending sentencing on Sept. 13, 2013. The charge carries a statutory maximum of five years in prison and financial penalties.
According to the government’s evidence, the FBI received information in January 2013 that a corrections officer was providing narcotics and other contraband to an inmate at the D.C. Jail. An investigation revealed that the inmate was working with co-conspirators outside the jail to assemble, deliver, receive and distribute narcotics intended for inmates at the jail, and that they were paying an individual to get the drugs into the facility.
On Jan. 27, 2013, Womble met with one of the co-conspirators in the parking lot of a carry-out restaurant in the District of Columbia. The co-conspirator gave Womble a plastic bag, which contained a powdery substance consistent with heroin and marijuana. The bag also contained a cellphone, cellphone charger and $400 in cash. Womble understood that the cash was in exchange for him getting the drugs, cell phone and charger to the inmate in the jail. Two days later, he smuggled the items into the jail and provided them to the inmate.
Plans were subsequently made for another delivery of contraband. However, on Feb. 12, 2013, multiple bags of marijuana were discovered and intercepted inside Womble’s locker at the jail by the District of Columbia Department of Corrections and one of its K-9 dogs. The marijuana had been provided to Womble by a person who wanted it delivered to another inmate.
In announcing the guilty plea, U.S. Attorney Machen and Assistant Director in Charge Parlave commended the work of the three agencies who jointly worked the case, including agents from the FBI’s Washington Field Office, an FBI task force officer from Metropolitan Police Department (MPD) and investigators from the District of Columbia Department of Corrections Office of Investigative Services. Finally, they commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Lenisse Edloe, Legal Assistant Angela Lawrence, and Assistant U.S. Attorneys Richard E. DiZinno and Christopher R. Kavanaugh, who are prosecuting the case.
13-212Federal Jury Finds Brookfield Podiatrist Guilty of Medicare FraudRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, Susan J. Waddell, Special Agent in Charge of U.S. Health and Human Services, Office of Inspector General for New England, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, today announced that a federal jury in Hartford has found SAMIR ZAKY, 38, of Brookfield, guilty of 14 counts of health care fraud and 14 counts of making false statements relating to health care matters. The trial before Senior U.S. District Judge Alfred V. Covello began on June 10 and the jury returned its verdict this afternoon.
“Health care fraud is a serious crime that undermines our ability to provide care to those who need it most,” stated Acting U.S. Attorney Daly. “Our Office is committed to protecting Medicare beneficiaries and taxpayers from all unscrupulous health care providers in Connecticut.”
“When health providers put personal greed ahead of the provision of quality patient services, they should expect intense scrutiny by law enforcement officials,” stated HHS-OIG Special Agent in Charge Waddell “Dr. Zaky recklessly ignored the consequences, insisting on cheating taxpayers, patients, and the Medicare program. Now he is paying the price.”
“Medicare is in place for our nation’s elderly to receive important and often vital health care services,” stated FBI Special Agent in Charge Mertz. “It is not for unscrupulous doctors and health care professionals to use as a personal slush fund. The FBI is committed to investigating fraud in both government-sponsored and private health insurance programs and urges anyone with information on a health care fraud to report it their local FBI office.”
According to the evidence at trial, ZAKY is a podiatrist who operated Affiliated Podiatrists, LLC in Brookfield. From August 2010 to July 2011, ZAKY submitted numerous claims to the Medicare program stating that he had performed nail avulsions, a surgical procedure that requires use of an injectable anesthetic and removes the entire border of a patient’s toenail. In fact, ZAKY had only clipped or trimmed the patient’s toenails.
Judge Covello has scheduled sentencing for September 10, 2013, at which time ZAKY faces a maximum term of imprisonment of 10 years on each count of health care fraud, and a maximum term of imprisonment of five years of each count of making a false statement.
The government also is seeking to forfeit more than $29,000 in cash found during a search of ZAKY’s residence in August 2010.
ZAKY has been released on bond since his arrest on November 29, 2012.
This matter is being investigated by the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys David J. Sheldon and Christopher W. Schmeisser and Auditor Kevin Saunders.
Acting U.S. Attorney Daly encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force at 203-777-6311 or 1-800-HHS-TIPS.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Federal Indictment Charges Lane County Couple with Obtaining a Firearm for a Convicted Felon and Being Accessories to Kidnapping and Other CrimesRead the Press Release
Indictment Charges Husband and Wife with Obtaining Firearm for Charged Federal Defendant David Joseph Pedersen and Being Accessories After the Fact for Pederson and Co-Defendant Holly Ann GrigsbyPORTLAND, Ore. - A federal indictment was unsealed today charging Corey Wyatt, 28, and his wife, Kimberly Scott Wyatt, 32, of Springfield and Monroe, Oregon with conspiracy to obtain and transfer a firearm to convicted felon David Joseph Pedersen a/k/a Joey Pedersen who was prohibited from possessing a firearm, the straw purchase and transfer of that firearm, being accessories after the fact to kidnapping resulting in death, using a firearm in a crime of violence that caused death, and transportation of a stolen vehicle by assisting David Joseph Pedersen and Holly Ann Grigsby, and misprision of a felony.
Kimberly Scott Wyatt appeared before U.S.Magistrate Dennis J. Hubel for arraignment and entered a plea of not guilty to all counts of the indictment. She was detained in custody pending further review, and a trial date of August 20, 2013 was set. Defendant Corey Wyatt is currently in custody on unrelated state charges, and an arraignment before a U.S. Magistrate will be scheduled on a later date.
The attached indictment charges an alleged conspiracy that began on or about July 4, 2011, and charges the Wyatts with making a false statement to deceive a licensed firearms dealer that Kimberly Scott Wyatt was the actual purchaser of a 9mm luger pistol when, in fact, they purchased the firearm for David Joseph Pedersen who was a convicted felon who was prohibited from possessing a firearm. David Joseph Pedersen and Holly Ann Grigsby are currently pending federal charges that stem from an alleged 10-day crime spree that spanned from Everett, Washington to Eureka, California, and included four murders and the possession of that firearm and others.
The attached indictment also charges both Corey Wyatt and Kimberly Scott Wyatt with being accessories after the fact to Pedersen and Grigsby between September 27 and 28, 2011, in order to hinder and prevent their apprehension, knowing that Pedersen and Grigsby had committed crimes including kidnapping resulting in death, using a firearm in a crime of violence that caused death, and transporting a stolen vehicle. Pedersen and Grigsby are charged in a separate federal indictment with the murder, kidnapping and robbery of Pedersen’s father, David Jones “Red” Pedersen, of Everett, Washington, as well as using a firearm during and in relation to a crime of violence that resulted in death, and the interstate transportation of Red Pedersen’s stolen vehicle from Washington to Oregon between September 26 and 27, 2011.
If convicted, the defendants face maximum penalties for the charges ranging from three to 15 years, and up to a $250,000 fine.
An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty.
These charges stem from an investigation led by the Federal Bureau of Investigation (FBI), the Oregon State Police, the Everett, Washington Police Department and the Eureka, California Police Department, with assistance from the Oregon Department of Corrections, Lincoln County Sheriff's Office, Lincoln County Major Crimes Team, Linn County Sheriff's Office, Benton County Sheriff's Office, Corvallis Police Department, Salem Police Department, Keizer Police Department, California Highway Patrol, Yuba County, California Sheriff's Office, Portland Police Bureau, United States Marshals Service, Tillamook County Sheriff's Office, Philomath Police Department, Lebanon Police Department, Stayton Police Department, Snohomish County Sheriff's Office, and the Oregon Department of Justice.
Assistant U.S. Attorneys Jane Shoemaker and Hannah Horsley are handling the prosecution of the case.
Federal Grand Jury Indicts Two in Marijuana Trafficking InvestigationRead the Press Release
Investigation stems from an abandoned marijuana load discovered on Van Horn school bus last year
In Alpine, two men face federal drug trafficking charges related to the discovery of more than 480 pounds of marijuana on a Van Horn ISD school bus last year announced United States Attorney Robert Pitman and DEA-El Paso Division Special Agent in Charge Joseph M. Arabit.
A two-count federal grand jury indictment, returned Tuesday in Pecos, TX, and unsealed following their arrests yesterday, charges 22–year-old Anthony Paredez-Juarez of Odessa, TX, and 20–year-old George Jacob Cosme-Baird of Presidio, TX, with one count of attempted possession of between 100 kilograms and 1,000 kilograms of marijuana and one count of possession with intent to distribute between 100 kilograms and 1,000 kilograms of marijuana within 1,000 feet of a school, namely Presidio High School.
The indictment stems from an investigation resulting from a marijuana seizure on November 19, 2012, at a convenience store in Marfa, TX. Earlier in the day, the school bus was used to transport students from Van Horn to Presidio, TX, for a basketball game and was now en route back to Van Horn. According to authorities, the bus driver alerted U.S. Border Patrol agents, who were also at the convenience store, when he noticed several duffle bags in the bay area of the bus which not there when they departed Van Horn. The agents took possession of the duffle bags after discovering the marijuana inside.
“This case involved a particularly brazen act of using a school bus and students as cover for a drug load. These arrests and federal charges should send a message that law enforcement agencies will work together to ensure that persons involved in this type of activity are brought to justice, especially when the safety of our children is concerned. This case also shows the importance of the cooperation we receive from vigilant and honest citizens, without whose assistance we could not do our jobs,” stated DEA-El Paso Division Special Agent in Charge Joseph M. Arabit.
Upon conviction, each defendant faces a minimum of five years in federal prison per count. The statutory maximum sentence for conviction of the school zone related drug charge is 80 years incarceration and a $10 million fine. The statutory maximum sentence for conviction of the other drug charge is 40 years incarceration and a $5 million fine. Both defendants remain in federal custody pending the outcome of a detention hearing scheduled for 9:30am on June 19, 2013, before U.S. Magistrate Judge B. Dwight Goains in Alpine, TX.
This indictment resulted from an investigation conducted by the Drug Enforcement Administration (Alpine) together with the U.S. Border Patrol, Homeland Security Investigations (HSI-Alpine) and the Texas Department of Public Safety Narcotics Division (Alpine). Assistant United States Attorney James J. Miller, Jr., is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Federal Grand Jury in South Bend Returns IndictmentsRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary L. Hatton
www.usdoj.gov/usao/inn/ Fax: (219) 852-2770
South Bend, IN—The United States Attorney's Office announced that a Grand Jury sitting in South Bend, Indiana, returned the following Indictments on June 12, 2013:
Emilio Santana-Esquivel, 27, of Macy, Indiana, was charged in a three count Indictment with one count of falsely representing to be a United States citizen, one count of identity theft, and one count of illegal use of a false social security number.These charges were filed as the result of an investigation by the Department of Homeland Security – Immigration and Customs Enforcement.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jesse M. Barrett.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines. .
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Edinburg, Texas Woman Indicted in Mortgage Fraud SchemeRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – A 34-year-old Edinburg, Texas woman has been indicted in a bank fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Lacie Devine was indicted on June 13, 2013 by a federal grand jury and charged with conspiracy to commit mail fraud in connection with a mortgage fraud scheme. If convicted, Devine faces up to 20 years in federal prison and possible restitution of $3.7 million.
According to the indictment, Devine, an escrow officer at National Escrow & Title, LLC, is alleged to have been involved in a wide-spread mortgage fraud scheme involving loan officers, recruiters, home sellers, and home buyers. The indictment alleges that Devine conspired with others to falsify home buyers’ loan applications, to falsify real estate settlement statements, and to distribute lender funds to parties that were not disclosed on the settlement statements and were not disclosed to the lenders. Devine’s scheme resulted in losses to mortgage lenders and to those that insured these mortgages, including The Federal Housing Administration (FHA), The Federal National Mortgage Association (Fannie Mae), and The Federal Home Loan Mortgage Corporation (Freddie Mac).
Others who have pleaded guilty in connection with the case include Ronzell Mitchell, 36, of Edmond, OK; Christi Wyatt, 41, of Desoto, Texas; Roslyn Long, 45, of Plano; Michael Ross, 35, of Dallas; and Curtis Callier, 32, of Dallas.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force.
President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case is being investigated by the Federal Bureau of Investigation, HUD-Office of Inspector General, Federal Housing Finance Agency-Office of Inspector General, and Texas Department of Insurance-Fraud Unit. The case is being prosecuted by Assistant U.S. Attorneys Chris Eason and Andy Williams.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Drug Dealers Sentenced to Federal PrisonRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced the sentencing of Kelvin Johnson, age 35, of Donalsonville, Georgia, Carlos Johnson, age 29, of Donalsonville, Georgia, Antonio Winbush, age 30, of Leary, Georgia, and Raymond Sutton, age 38, of Albany, Georgia, on June 13, 2013, before the Honorable W. Louis Sands, United States District Judge for the Middle District of Georgia.
Carlos and Kelvin Johnson had earlier pled guilty to conspiracy to distribute both cocaine powder and cocaine base (“crack” cocaine). Carlos Johnson had also pled guilty to money laundering, as well. Winbush and Sutton had both pled guilty to conspiracy to distribute cocaine.
Court records reveal that the four defendants were part of a large group operating in the Seminole County, Georgia, area between 2008 and 2011 distributing multi-ounce quantities of cocaine powder and cocaine base (“crack” cocaine).
Carlos and Kelvin Johnson both received sentences of life imprisonment. Sutton was sentenced to one hundred sixty-eight months imprisonment and Winbush received a sentence of eighty-seven months in prison. All four men were also sentenced to five years supervised release and a $100.00 mandatory assessment fee per count of conviction.
“There is no parole in the federal system. These life sentences mean that Carlos and Kelvin Johnson shall never be dealing drugs in our community again. All four of these sentences should send a strong message to those who deal drugs illegally of the fate that awaits them if prosecuted in federal Court,” said United States Attorney Michael Moore.
The case was investigated by the Drug Enforcement Administration, Georgia Bureau of Investigation, with the assistance of the Albany-Dougherty County Drug Unit, South Central Drug Task Force, and the Mid-South Narcotics Task Force. The case was prosecuted by Assistant United States Attorney Leah McEwen.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
District Men Sentenced to 60-Year Prison Terms for First-Degree Murder While Armed and Other Charges in 2008 Shooting in Southeast Washington-Early-Morning Gunfire Killed A Woman, Wounded A Man-Read the Press Release
WASHINGTON – Robert Walker, 25, and Rodney White, 24, both from Washington, D.C., were each sentenced to 60-year prison terms today for first-degree murder while armed and other charges stemming from a shooting at an apartment complex in 2008 in which a woman was killed and a man was wounded, U.S. Attorney Ronald C. Machen Jr. announced.
Walker and White, who also is known as Rodney Whiting, were found guilty by a jury in April 2013 of 11 counts each following a trial in the Superior Court of the District of Columbia. In addition to the murder charge, the jury convicted them of four counts of assault with intent to kill while armed and weapons offenses. The Honorable Lynn Leibovitz sentenced them.
The shooting took place on May 5, 2008 in the Benning Park Apartment complex in the 4800 block of G Street SE. The gunfire killed Jasmine McCray, 23.
At trial, the government’s evidence showed that on May 5, 2008, at approximately 3 a.m., Ms. McCray was with her boyfriend and several other men, including Levern Butler, in the “Down Bottom” portion of the Benning Park Apartment complex parking lot. They and others had just come back from the Le Pearl nightclub in Capitol Heights, Md., where an altercation occurred between Butler and another man, Kenneth Hinton. Hinton was at the nightclub with Walker and White and others from the “Up Top” portion of Benning Park.
Both Butler and Hinton were kicked out of Le Pearl and were seen afterwards by others as being very upset about the fight. Walker and White, along with Hinton, went back to the “Up Top” portion of Benning Park and armed themselves with guns. Then they went to the “Down Bottom” part of Benning Park, and began to fire upon the group including Ms. McCray.
As the shooting commenced, Ms. McCray was hit in the head and went down. She died a short time later, having also suffered from being run over by a car that was driven by one of the other men, who accidentally ran her over while trying to flee from the parking lot. Ms. McCray was part of a group including four other people, including a man who was shot in the hand.
Hinton died in a traffic accident about a week after the shooting. Walker and White were arrested in 2009.
In announcing the sentences, U.S. Attorney Machen expressed his appreciation to the officers, detectives and mobile crime scene personnel who investigated the case for the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Phaylyn Hunt, Antoinette Sakamsa, and Meridith McGarrity; Victim/Witness Advocate Marcia Rinker; Information Technology Specialist Leif Hickling, Investigative Analyst Zachary McMenamin; Intelligence/Security Specialist Lawrence Grasso; Victim/Witness Specialists Wanda Queen and M. LaVerne Forrest, and Supervisory Victim/Witness Specialist Michael Hailey.
Finally, he commended the work of former Assistant U.S. Attorneys Michael Glynn and Eric Gallun, who investigated and indicted the case, and Assistant U.S. Attorneys David Gorman and Veronica Sanchez, who investigated and prosecuted the case at trial.
13-209District Man Sentenced to Eight Years in Prison for Stealing Car from 87-Year-Old Woman and Related Charge-Defendant Posed as Government Employee, Sold Victim’s Car for Scrap Metal-Read the Press Release
WASHINGTON - Thomas Williams, 41, of Washington, D.C., was sentenced today to eight years in prison for stealing a car from an 87-year-old woman after pretending to be a public officer of the District of Columbia and then failing to appear for a court date following his arrest in the case, U.S. Attorney Ronald C. Machen Jr. announced.
Williams was found guilty in March 2013 of four charges following a trial in the Superior Court of the District of Columbia. They included second-degree theft of a senior citizen, unauthorized use of a motor vehicle, false impersonation of a public official, and failure to appear. The Honorable Stuart G. Nash sentenced Williams to six years in prison for the crimes associated with the car theft, and another two years for failing to show up for a court appearance. Williams also was ordered to pay $1,000 in restitution. After his prison term, Williams will be placed on three years of supervised release.
According to the government’s evidence, on Aug. 16, 2012, Williams flagged down a tow truck driver and asked him if he was available to tow a car to a junkyard in Maryland. The tow truck driver agreed and the two men drove that morning to the home of the victim, who lives alone in Northeast Washington. Williams knocked on the front door, flashed an identification card, and told the victim that he was from the District of Columbia government and had orders to take her car, a 1996 Ford Contour that was parked in the driveway. She begged and pleaded with Williams not to take her car, saying that she was going to give it to one of her granddaughters.
Williams, however, insisted that he had to take the car and threatened to charge the victim if she did not comply. He took the keys out of her hand, hooked the car to the tow truck, and drove it to a junkyard in Maryland, where he sold the vehicle for scrap metal.
An officer with the Metropolitan Police Department (MPD) followed up on the victim’s report by checking on the car’s vehicle identification number and finding that the vehicle had been scrapped at the junkyard. The officer then went to the junkyard, reviewed the paperwork, and linked Williams to the vehicle and the crime.
Following his arrest, Williams was released by a Superior Court judge and ordered to return on a subsequent date. He did not return on that date and was eventually apprehended by the Capitol Area Regional Fugitive Task Force.
In announcing the sentence, U.S. Attorney Machen praised those who worked on the case from the MPD, the U.S. Marshals Service and its Superior Court Warrant Squad, and the Capitol Area Regional Fugitive Task Force. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Theresa Nelson, Litigation Services Specialist Thomas Royal, and Victim Advocate Kristina Rose. Finally, he commended the work of Assistant U.S. Attorney Peter Lallas, who investigated and prosecuted the case.
13-210District Man Sentenced to 40 Years in Prison for First-Degree Murder While Armed and Other Charges-Attack Took Place in Southeast Washington on Halloween Night 2009-Read the Press Release
WASHINGTON – Darrell Lee, 24, of Washington, D.C., was sentenced today to 40 years in prison on first-degree murder while armed and related firearms charges in a killing on Halloween 2009 in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Lee was found guilty by a jury in March 2013, following a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Ronna L. Beck.
According to the government’s evidence, on the evening of Oct. 31, 2009, the victim, Ashton Hunter, 19, was staying with his girlfriend in an apartment building in the 300 block of 37th Street SE. That night, he went outside, expecting to meet one of his acquaintances from his home neighborhood of 7th & O Streets NW. Mr. Hunter went outside and met with Lee, had a conversation with him, and then started to walk back into the apartment building.
As Mr. Hunter approached the building entrance, Lee followed him down the sidewalk, pulled out a gun and shot him several times in the torso. Mr. Hunter died later that night from his injuries.
In announcing the sentence, U.S. Attorney Machen expressed his appreciation to the detectives, officers and others who worked on the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Phaylyn Hunt and Meridith McGarrity; Information Technology Specialists Leif Hickling and Joe Calvarese; Victim/Witness Advocate Marcey Rinker;Victim/Witness Specialist Debra Cannon, and Supervisory Victim/Witness Specialist Michael Hailey. Finally, he commended the work of former Assistant U.S. Attorney Eric Gallun, who obtained the indictment in the case, and Assistant U.S. Attorneys David Gorman and Richard DiZinno, who investigated and prosecuted the case at trial.
13-208District Man Sentenced to 11-Year Prison Term for Sexual Assault of Teenage Relative-Victim Came Forward Despite Defendant’s Warning Against Speaking Up-Read the Press Release
WASHINGTON – A 29-year-old man was sentenced today to 11 years in prison on a charge of first-degree sexual abuse stemming from an attack he carried out earlier this year against a 13-year-old girl, U.S. Attorney Ronald C. Machen Jr. announced today.
The defendant, of Washington, D.C., is not identified here to protect the privacy of the victim. He pled guilty in April 2013 in the Superior Court of the District of Columbia. The Honorable Russell F. Canan sentenced him today. Upon completion of his prison term, the defendant will be placed on five years of supervised release. He also must register as a sex offender for at least 10 years following his release from prison.
According to the government’s evidence, the girl is related to defendant and was at the Northwest Washington home of another relative on Jan. 9, 2013. That day, between 4 p.m. and 6:45 p.m., the defendant lured her away from other adults and sexually assaulted her. He warned her not to tell anyone what happened. The child, however, alerted her mother and the police.
In announcing the sentence, U.S. Attorney Machen commended the officers and detectives of the Metropolitan Police Department’s Sexual Assault Unit, who investigated the case. He also expressed appreciation to those at the U.S. Attorney’s Office who worked on the matter, including Paralegal Specialist D’Yvonne Key and Victim/Witness Advocate Lezlie Richardson. Finally, he acknowledged the work of Assistant U.S. Attorney Mervin A. Bourne, Jr., who investigated and prosecuted the case.
13-213District Man Pleads Guilty to Manslaughter Charge in Northeast Washington Shooting-Defendant Shot Victim During Argument in Edgewood Terrace Area -Read the Press Release
WASHINGTON – Decordre Franklin, 25, of Washington, D.C., pled guilty today to a charge stemming from a fatal shooting that took place earlier this year in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Franklin pled guilty in the Superior Court of the District of Columbia to voluntary manslaughter while armed in the slaying of Irving Jones. He is to be sentenced on Sept. 13, 2013 by the Honorable John Ramsey Johnson.
According to the government’s evidence, in the early morning of March 30, 2013, Franklin was seen in a yard at Edgewood Terrace, within the 600 block of Edgewood Street NE, carrying and playing with a handgun. Afterward, Franklin and Mr. Jones, 33, hung out together with others in the same vicinity. During that time, Mr. Jones and Franklin engaged in a brief physical altercation, which has been described by some witnesses as horseplay. After the altercation ended at approximately 2:10 a.m., Franklin then argued verbally with Mr. Jones.
While yelling at Mr. Jones, Franklin pulled out a handgun and shot him in the chest at close range. He then fled. Mr. Jones collapsed to the ground and died shortly afterward.
In announcing the guilty plea, U.S. Attorney Machen commended the work of the detectives of the Criminal Investigations Division, crime scene officers, and the Fifth Police District of the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Victim Witness Program Specialist Marcia Rinker and Paralegal Specialist Marian Russell. He also praised the efforts of Assistant U.S. Attorney Shana L. Fulton, who prosecuted the case.
13-211Disability Doctor’s Office Manager Sentenced in Manhattan Federal Court for Obstructing the Investigation of the Lirr Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that MARIA RUSIN, the office manager for disability doctor Peter J. Ajemian, was sentenced today in Manhattan federal court to three years of probation, including six months of home detention, for obstructing the investigation of the alleged massive fraud scheme in which Long Island Railroad (“LIRR”) workers claimed to be disabled upon early retirement so that they could receive disability benefits to which they were not entitled. RUSIN pled guilty in January 2013 to one count of obstructing a health care fraud investigation before U.S. Magistrate Judge Henry Pitman. She was sentenced by U.S. District Judge Victor Marrero.
Manhattan U.S. Attorney Preet Bharara stated: “As Dr. Peter J. Ajemian’s office manager, Maria Rusin understood the office process through which the LIRR disability fraud scheme was carried out, but when questioned by criminal investigators about her knowledge of the scheme, she denied any and told one lie after another. Obstructing the Government’s search for the truth is a serious crime, and as Rusin now knows, it is one that carries consequences.”
According to the Complaint, the Superseding Indictments, the Superseding Informations, and statements made in other public filings and in court:
The Railroad Retirement Board (“RRB”) is an independent U.S. agency that administers benefit programs, including disability benefits, for the nation’s railroad workers and their families. A unique LIRR contract allowed employees to retire at the relatively young age of 50 – the age of eligibility has since changed to 55 – if they had been employed by the LIRR for at least 20 years. Eligible employees are entitled to receive an LIRR pension, which is a portion of the full retirement payment for which they are eligible at 65. In addition, at full retirement age (between age 60 and age 65 depending on years of service) they are eligible to receive an RRB retirement pension. For LIRR workers who retired at 50 with only an LIRR pension, they would receive less than their prior salary and substantially lower pension payments than those to which they would be entitled at full retirement age. However, LIRR employees who retired and claimed disability could receive a disability payment from the RRB on top of their LIRR pension, regardless of age. A retiree’s LIRR pension, in combination with RRB disability payments, can be roughly equivalent to the base salary earned during his or her career.
Hundreds of LIRR employees have allegedly exploited the overlap between the LIRR pension and the RRB disability program by pre-planning the date on which they would falsely declare themselves disabled so that it would coincide with their projected retirement date. These false statements, made under penalty of prosecution in disability applications, allowed LIRR employees to retire as early as age 50 with an LIRR pension, supplemented by the fraudulently obtained RRB disability annuity. From 1995 through 2011, more than 75% of LIRR employees stopped working and began receiving RRB disability benefits, whereas during this same period, only 25% of retiring Metro-North employees stopped working and began receiving RRB disability benefits.
RUSIN was the office manager for Peter J. Ajemian, a Board-certified orthopedist who was instrumental in helping LIRR retirees receive disability benefits to which they were not entitled. Between the late 1990s and 2008, Ajemian declared as disabled over 94% of the LIRR employees he saw as patients. As part of the massive fraud scheme, Ajemian prepared false documentation purporting to show the LIRR employees’ steady decline toward disability exactly at the time they pre-planned their retirement. He then provided to those LIRR employees a narrative for submission to the RRB that claimed they should receive a disability annuity. These medical narratives were completely fabricated or grossly exaggerated so that Ajemian could recommend a set of restrictions that, if legitimate, would render it impossible for the LIRR employees to continue performing their jobs. Many of the purportedly “objective” findings from the tests he conducted showed nothing more than normal degenerative changes one would expect to see in patients within the relevant age bracket. In his plea agreement, Ajemian stipulated that the total intended losses from his fraud were between $100 and $200 million, and that the actual losses suffered by victims to date total $116.5 million.
On August 30, 2010, in an interview with criminal investigators participating in the Southern District of New York’s investigation of this disability fraud scheme, RUSIN falsely denied knowing that Ajemian’s LIRR patients were retiring at the same time that they were claiming occupational disability from the RRB; falsely claimed that she was never told that an LIRR patient was planning to retire except when the patient was directed to see her to pay for a narrative; falsely claimed that this notice of an LIRR’s patient’s planned retirement usually occurred at the end of the process of seeing Ajemian; and falsely claimed that she had no understanding about how an occupational disability would affect the payout for a worker who was retiring. In fact, RUSIN had day-to-day exposure to Ajemian’s disability practice, and she fully understood how the process worked and what the financial incentives were for the LIRR employees.
In addition to her term of probation, RUSIN, 57, of Farmingdale, New York was also ordered to pay a $3,000 fine and a $100 special assessment.
Thirty-two people have been charged in connection with the LIRR disability fraud scheme, 23 of whom have now pled guilty. Two defendants have been sentenced. Peter J. Ajemian was sentenced in May 2013 to 96 months in prison and ordered to forfeit $116,500,000. Gary Satin was sentenced in March 2013 to 20 months in prison and ordered to forfeit $247,000. The charges against the remaining defendants are merely allegations and they are all presumed innocent unless and until proven guilty.
Mr. Bharara praised the Railroad Retirement Board Office of Inspector General, the Federal Bureau of Investigation, and the Office of the Inspector General of the Metropolitan Transportation Authority for their outstanding work in the investigation, which he noted is ongoing. He also acknowledged the previous investigation conducted by the New York State Attorney General’s Office into these pension fraud issues.
The Office’s Complex Frauds Unit is handling the case. Assistant U.S. Attorneys Justin Weddle, Daniel Tehrani, and Nicole Friedlander are in charge of the prosecution.
Denton County Man Sentenced for Firearms ArsenalRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas - A 39-year-old Lewisville, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Scott Travis Whittington pleaded guilty on Nov. 1, 2012, to possessing unregistered firearms, smuggling goods from the United States and embezzlement of government property and was sentenced to 120 months in federal prison on June 13, 2013 by U.S. District Judge Richard Schell.
According to information presented in court, from January 2008 through September 2012, Whittington was in possession of two firearms that were not properly registered to him and stolen military property, specifically 27 M249 squad automatic weapon short barrels; 1,348 5.56 mm 30-round magazines; a fifty-caliber M2 machine gun barrel, two M2 machine gun tripods; five Small Arms Protective Insert plates; medic sets; approximately 61 cases of Meals Ready to Eat; and a destructive device. Whittington was also found to have illegally exported a night vision weapon sight in January 2008.
Additionally, Whittington was found to be in possession of 405,331 rounds of ammunition, 26 silencers, and 158 firearms. When questioned about the large amount of ammunition during sentencing, Whittington responded that he was, “saving up for a rainy day,” and that he thought he had, “more like 700,000 rounds of ammunition.”
Whittington was indicted by a federal grand jury on Sep. 12, 2012.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Postal Inspection Service, Homeland Security Investigations, and the Department of Defense. This case was prosecuted by Assistant U.S. Attorney Tracey Batson.Delmar Man Sentenced to 78 Months in Prison for His Involvement in A Heroin Distribution ConspiracyRead the Press Release
Albany, New York — HENRY J. RAUCHE, III, age 28, of Delmar, New York, was sentenced yesterday by Senior United States District Court Judge Lawrence E. Kahn to 78 months of imprisonment for his role in a heroin distribution conspiracy, announced United States Attorney Richard S. Hartunian, Brian R. Crowell, Special Agent-in-Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division, and Joseph Anarumo, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms & Explosives, New York Field Division. RAUCHE, who had entered guilty pleas on July 3, 2012 to one count of conspiracy to possess with intent to distribute 74 grams of heroin, and one count of possessing a firearm in furtherance of a drug trafficking crime, was also sentenced to three years of supervised release following his term of imprisonment. RAUCHE was detained following his sentencing.
In May 2011, RAUCHE was part of a heroin distribution conspiracy that sought to distribute approximately $7,500 worth of heroin in the Capital District. RAUCHE also possessed a handgun and rifle that he used to protect his heroin and drug money from theft by other drug dealers.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Bethlehem Police Department.
Defendant Pleads Guilty to Framing Woman for Drug PossessionRead the Press Release
ROME, Ga. – Clifford J. Joyce has pleaded guilty to planting methamphetamine on the car of a Murray County woman for the purpose of getting her arrested.
“The defendant attempted to manipulate the criminal justice system to serve his own purpose by framing someone for drug possession,” said United States Attorney Sally Quillian Yates. “While the narcotics charges were ultimately dismissed, this outrageous conduct cannot stand.”“The investigation and prosecution of persons involved in public corruption are a priority of the Georgia Bureau of Investigation. Many of the cases such as this require partnership of local, state and federal authorities,” said GBI Director Vernon M. Keenan.
According to United States Attorney Yates, the charges and other information presented in court: In July 2012, a Murray County woman met with then-Chief Magistrate Judge Bryant Cochran regarding a legal matter. Thereafter, the woman alleged that during the meeting, Cochran made inappropriate sexual advances towards her.
In an effort to discredit the woman, Joyce and others participated in a scheme to frame the woman for drug possession. On or about August 12, 2012, Joyce hid a metal tin under the tire well of the woman’s car. The metal tin contained five small packets of methamphetamine.
Two days later, on August 14, 2012, Murray County Deputy Sheriff Joshua Greeson (who has since been convicted of witness tampering for lying to law enforcement officers) conducted a traffic stop of the woman’s car. During the traffic stop, Greeson searched the vehicle for drugs. Ultimately, after receiving information from Captain Michael Henderson (who has also been convicted of witness tampering), Greeson found the metal tin of methamphetamine under the tire well. After locating the drugs, Greeson and Henderson arrested the woman and the driver of the car on narcotics charges. On August 24, 2012, the charges against the woman were dismissed.
Joyce, 27, of Dalton, Ga., could receive a maximum sentence of 20 years in prison and a fine of up to $1,000,000. However, in determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Sentencing is scheduled for August 23, 2013, at 1:30 p.m., before United States District Judge Harold L. Murphy.
This case is being investigated by Special Agents of the Federal Bureau of Investigation and the Georgia Bureau of Investigation.
Assistant United States Attorneys Jeffrey W. Davis and Michael Herskowitz are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Dallas Man Sentenced to Statutory Maximum of 10 Years in Federal Prison for Possessing More Than 8000 Images of Child PornographyRead the Press Release
DALLAS — Howard Tyson, 45, of Dallas, was sentenced today by Chief U.S. District Judge Sidney A. Fitzwater to the statutory maximum of 10 years in federal prison, following his guilty plea in March 2013 to one count of possession of child pornography. He was remanded into custody after he entered that plea. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Tyson used a peer-to-peer file-sharing program to download child pornography from the internet onto his computer and his wife’s computer. When agents with the U.S. Secret Service executed a federal search warrant at his residence on July 26, 2011, Tyson admitted that he had been downloading child pornography for approximately one year. He said that he downloaded most of the child pornography onto his wife’s laptop computer. A forensic examination of both computers showed that the hard drives contained more than 8000 images and 20 videos of child pornography. Tyson acknowledged that some of the images were sadistic and that the images and videos were of real prepubescent and pubescent minors.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the U.S. Secret Service and the Plano Police Department. Assistant U.S. Attorney Camille Sparks prosecuted.
Cigarette Trafficker Sentenced to 18 Months in Prison and Forfeits more than $115,000 and Lexus SUVRead the Press Release
The owner of a Kenmore, Washington nail and beauty salon who illegally imported and sold cigarettes was sentenced today in U.S. District Court in Seattle to 18 months in prison, three years of supervised release and will pay approximately $250,000 in tax penalties and assessments, announced U.S. Attorney Jenny A. Durkan. HAN BUI, 45, owner of Lovely Nails and Beauty Salon on NE 181st Street, pleaded guilty February 12, 2013 to trafficking in counterfeit cigarettes. At sentencing U.S. District Judge John C. Coughenour ordered that the tax assessments and penalties will go to the State of Washington for the taxes lost on the sale of the counterfeit cigarettes.
According to records filed in the case, HAN BUI came to the attention of law enforcement as part of a coordinated investigation of illegal cigarette imports from Vietnam. The investigation identified BUI and her husband as the highest volume illegal importers of cigarettes from Vietnam. The contraband cigarettes are sold under familiar U.S. brand names and packaging, but are manufactured in Vietnam. BUI did not pay federal excise taxes or state cigarette taxes on the cigarettes. Investigators estimate the tax loss from BUI’s illegal trafficking at more than $450,000. When a search warrant was served on her home in July 2011, she possessed more than 400,000 contraband cigarettes, along with $115,500 cash, and a Lexus SUV that she admitted was purchased with the proceeds of her cigarette trafficking. The cash and the SUV are being forfeited to the government.
In asking for a two year prison sentence prosecutors wrote to the court that “between November of 2009 and July of 2011, BUI purchased from Vietnam and arranged the importation of hundreds of thousands of contraband cigarettes in hundreds of mailed parcels….On the day her house and business were searched, Ms. Bui was in possession of more than 2,000 cartons of cigarettes…. investigators have reason to believe that because the contraband cigarettes were being sold outside of legal, regulated channels, they were ending up in the hands of minors at disproportionately high rates.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Postal Inspection Service, and the Washington State Liquor Control Board. The case is being prosecuted by Assistant United States Attorney Darwin Roberts.
Chicago Man Sentenced to 125 Months for Two Bank Robberies in Florence, KYRead the Press Release
COVINGTON, KY - A Chicago man, who has several prior criminal convictions, was sentenced to 125 months in federal prison for committing two bank robberies in Boone County.
U.S. District Judge David Bunning sentenced 49 year-old Bernard Beaver Russell on Thursday and placed him on supervised release for 3 years after he completes his prison term. Judge Bunning ordered the sentence to run consecutively to a previous state court sentence of 7 ½ years for driving a stolen car and engaging in a high-speed chase after committing the bank robberies.
Russell admitted to robbing a Huntington Bank branch and a Central Bank branch in Boone County on February 9, 2012.
Russell entered his guilty plea on February 28, 2013. Under federal law, he must serve at least 85 percent of his prison sentence.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Perrye Turner, Special Agent in Charge, Federal Bureau of Investigation, jointly announced the sentence.
The investigation was conducted by the Federal Bureau of Investigation and the Boone County Sheriff’s Department. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Tony Bracke.
Buffalo Man Convicted on Drug ChargesRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Alejandro Navarro-Gonzalez, 31, of Buffalo, N.Y., was convicted after a jury trial of possession with intent to distribute a kilogram or more of heroin and maintaining a drug involved premises. The charges carry a mandatory minimum penalty of 20 years in prison, a maximum of life, and a $20,000,000 fine.
Assistant U.S. Attorney Mary Catherine Baumgarten, who along with Assistant U.S. Attorney Eric Opanga handled the trial, stated that on March 14, 2012, law enforcement officers searched a storage unit on Transit Road in Williamsville, N.Y. The unit, rented by the defendant, contained more than one kilogram of heroin, a loaded .32 caliber semi-automatic pistol and 92 rounds of ammunition. The defendant's DNA was found on the firearm during forensic testing.
The conviction is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano, and the Erie County Sheriff's Department, under thd direction of Sheriff Tim Howard.
Sentencing is scheduled for September 30, 2013 at 12:30 p.m. before U.S. District Judge Richard J. Arcara, who presided over the trial of this case.Buffalo Man Arrested, Charged with Bank RobberyRead the Press Release
ROCHESTER, N.Y.–The United States Attorney’s Office announced today that Jason Berg, 23, Buffalo, N.Y., was arrested and charged by criminal complaint with committing two bank robberies. The charges carry a maximum penalty of 20 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney Melissa Marangola, who is handling the case, stated that according to the complaint, the defendant robbed the M&T Bank, located at 788 Tonawanda Avenue in Buffalo, on May 16, 2013 and the M&T Bank, located at 1580 Hertel Avenue in Buffalo, on June 12, 2013. The complaint further alleges that Berg passed notes to the bank tellers indicating he possessed a specific firearm and demanded specific amounts of money.
The defendant made an initial appearance today before U.S. Magistrate Judge Jeremiah J. McCarthy and is being detained. Berg is due back in court June 17, 2013 at 2:00 p.m. for a detention hearing.
The Criminal Complaint is the result of a joint investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda and the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Broward Company Pleads Guilty and Is Sentenced for Illegal Trafficking of Marine LifeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Otha Easley, Acting Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, and David Pharo, Resident Agent in Charge U.S. Fish & Wildlife Service, Miami, announced that Aquatic Trading Company, Inc. (ATC), a Florida corporation based in Pompano Beach, entered a guilty plea and was sentenced yesterday in federal district court in Miami for conspiring to harvest, transport, and sell juvenile nurse sharks and angelfish, knowing the fish were taken, possessed, transported, sold, and intended to be sold in violation of the laws and regulations of the State of Florida, contrary to the federal Lacey Act, Title 16, United States Code, Sections 3372(a)(2)(A), and 3373(d)(1) and (2), all in violation of Title 18, United States Code, Section 371.
ATC was sentenced by Senior U.S. District Judge James Lawrence King, who had earlier accepted ATC’s guilty plea to the criminal charge. The company was placed on court-supervised probation for three years, ordered to pay a criminal fine of $3,000, and ordered to surrender to the Florida Fish & Wildlife Conservation Commission and to the United States Fish & Wildlife Service all licenses, permits, and endorsements issued to or held by the company. Two co-defendants in the case, Walter R. Bloecker and Lila M. Bloecker had entered guilty pleas to the same charge before Judge King on April 18, 2013, and each been sentenced to a period of 90 days home confinement, followed by a one year term of probation.
According to the indictment and statements in court, the defendants were involved in the illegal harvest of juvenile nurse sharks (Ginglymosthoma cirratum) and a variety of oversized angelfish (Pomocanthus arcuatus, Holocanthus bermudensis, and Holocanthus ciliaris), from around as early as June 2012 through October 2012. Harvesting of the fish was arranged through telephone calls between ATC’s employees and an individual in the Florida Keys. Walter Bloecker advised the harvester that he could conceal the illegal source of the sharks by using false paperwork to make it appear the sharks had been imported from Nicaragua. Neither ATC nor the harvester held the required permits for harvesting nurse shark pups for commercial purposes. The illegally acquired sharks were, according to the indictment and admissions in court, harvested from Florida State waters in the Florida Keys and marketed by telephone to a retailer in Michigan. The sharks were shipped to the Michigan-based buyer by commercial air cargo.
Likewise, Lila and Walter Bloecker engaged in business conversations with the Michigan dealer, to arrange the sale of oversized angelfish listed on a weekly inventory sales guide mailed to potential customers. The angelfish, also harvested in the Florida Keys, were sold and shipped to Michigan.
Florida Administrative Code, Section 68B-24.005, which addresses the commercial harvest of sharks from the waters of the state, provides in relevant part that any person harvesting sharks in or from the waters of the state for commercial purposes or sells any shark harvested from such waters must possess a valid federal annual vessel permit for sharks; may only sell to a holder of a valid Atlantic shark dealer permit issued pursuant to 50 C.F.R. §635.4; and that no wholesale dealer, as defined in Florida Statutes Section 379.362(1), may purchase sharks, or any part thereof, unless in possession of a valid federal Atlantic shark dealer permit and without confirming that the seller possesses a valid Florida saltwater products license and the federal licenses and permits specified in the Code Section.
Florida Administrative Code, Section 68B-42.004, “Size Limits” provides in relevant part that in all state waters no person may harvest angelfish with a total length outside of the limits specified for the individual species, specifically a minimum of one-and-one-half inches and a maximum of eight inches for Gray angelfish (P. arcuatus) and French angelfish (P. Paru); and a minimum of one-and-three-quarters inches and a maximum of eight inches for Blue angelfish (H. bermudensis) and Queen angelfish (H. ciliaris).”
Mr. Ferrer commended the investigative efforts of the NOAA Office for Law Enforcement and the Fish & Wildlife Service Office of Law Enforcement. This case was prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes.
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.
Bridgeville Man Possessed Sexual Images and Videos of MinorsRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Kenneth Lee Jones, 67, of Bridgeville, Pa., pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that on July 10, 2012, Jones possessed visual depictions, namely, images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Judge Schwab scheduled sentencing for Oct. 16, 2013, at 9:30 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Jones.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Branson Man Pleads Guilty to Foreign Labor ViolationsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Branson, Mo., man pleaded guilty in federal court to harboring aliens and making false statements after arranging employment contracts for dozens of foreign workers at Branson locations in violation of their visas.
Steven Howard Teel, 39, of Branson, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush on Thursday, June 13, 2013.
Teel admitted that he arranged for 78 foreign workers to enter the United States in 2009 under the H-2B non-agricultural temporary worker program. These workers were supposed to work in Myrtle Beach, S.C.; however, they were hired by businesses in Branson in violation of their visas and contrary to the applications that were submitted and approved by federal authorities.
According to today’s plea agreement, Teel started a labor leasing business in 2005 with John Voisine, the owner of Santa Cruz Management, in order to recruit foreign workers to enter the United States and place those workers with various businesses as a seasonal labor force. Teel purchased the business from Voisine in January 2009.
In 2007, the plea agreement says, Santa Cruz Management began submitting documents related to the H-2B worker program to have alien workers from other countries enter the United States. Teel caused the submission of forms to the U.S. Department of Labor and U.S. Citizen Immigration Services that contained false information, including the number of workers needed and where the foreign workers would be employed. Those forms stated that foreign workers would be employed as landscape laborers or food and beverage assistants in the Myrtle Beach area. Instead, Teel admitted, the workers were displaced to satisfy employment contract obligations in Branson. At the time H-2B workers entered the United States, no federal approval had been granted as an H-2B employer for the Branson area.
Teel also admitted that he instructed H-2B workers (through labor recruiters located overseas) to intentionally mislead U.S. State Department and U.S. Border Patrol officials. H-2B workers were told, if questioned regarding their destination, to tell U.S. officials that they were going to receive training in Branson prior to being employed in Myrtle Beach.
As a result of illegally harboring the H-2B workers in Branson, Teel received $124,210 in revenue from local employers.
Under federal statutes, Teel is subject to a sentence of up to 15 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Department of Labor, Office of the Inspector General, the Department of State's Diplomatic Security Service and Homeland Security Investigations.
Big Spring, Texas, Man Sentenced to 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
Defendant Also Ordered to Pay $150,000 in Restitution to a Victim Whose Photographs Were Included in His Collection
ABILENE, Texas — Juan Jose Guerra, 51, was sentenced on Wednesday, by U.S. District Judge Jorge A. Solis, to the statutory maximum of 10 years in federal prison for possessing child pornography. In addition, Judge Solis ordered that Guerra pay $150,000 in restitution to a victim whose photographs were included in his child pornography collection. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Guerra has been in federal custody since December 6, 2011. He pleaded guilty in February 2013 to one count of possession of child pornography. According to documents filed in the case, Guerra owned a computer, which he kept at his residence in Big Spring, Texas, which contained numerous images of child pornography.
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 U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case was investigated by the FBI, the Department of Homeland Security, U.S. Border Patrol, and the Midland and Big Spring Police Departments. Assistant U.S. Attorney Steven M. Sucsy, of the U.S. Attorney’s Office in Lubbock, Texas, was in charge of the prosecution.
Bay City Man Sentenced to 22 Years in Federal PrisonRead the Press Release
Joshua Edmond Klosowski, 27, of Bay City, Michigan, was sentenced to a 262 month prison sentence by U.S. District Judge Thomas L. Ludington yesterday in federal court in Bay City, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Special Agent in Charge Robert D. Foley, III, Federal Bureau of Investigation.
Klosowski had previously pleaded guilty to a heroin trafficking conspiracy charge pursuant to a plea agreement. The plea agreement allowed Klosowski to avoid a potential life sentence. The 21-plus year custodial sentence was based on Klosowski’s extensive criminal history and a variety of factors taken into consideration as part of his current offense conduct.
Part of the factual basis for his guilty plea, Klosowski acknowledged that he resumed trafficking in drugs immediately upon his release from state custody in 2010 for earlier drug convictions. While still on parole for those prior offenses, Klosowski traveled to Detroit, Lansing and Saginaw to buy heroin, then returned to Bay City to sell the heroin to several customers in the Bay County area.
Klosowski was arrested on May 7, 2012, after having made a heroin purchase for himself and a customer in Saginaw, Michigan. At the time of his arrest, Klosowski was preparing to inject himself with heroin while behind the wheel of a vehicle occupied by his 10-month old son. Klosowski later admitted that he had trafficked in approximately a kilogram of heroin between his release from custody in 2010 and that May 7, 2012 arrest.
During his sentencing hearing, Klosowski told the court that his drug addiction led him to and kept him involved in drug trafficking. Judge Ludington noted that Klosowski had been convicted six times over a period of a few years, but had not completed any of the court-ordered drug treatment programs that had been made available to Klosowski as a result of those convictions. The judge observed that Klosowski’s addiction victimized not just the defendant, but so clouded Klosowski’s judgment that everyone else became disposable to the defendant, even his own son. Judge Ludington concluded the sentencing hearing by telling Klosowski that, given his current age, he will have a life to live after serving his lengthy sentence and recommending to Klosowski that he use the time in custody to prepare himself to make the best use of the life that will follow his release from custody.
The case was investigated by the Federal Bureau of Investigations and the Mid-Michigan Safe Streets Task Force embedded in the FBI field office located in Bay City, Michigan. The public was represented in court by the U.S. Attorney’s Office in Bay City, Michigan.
Axius Ceo Roland Kaufmann Sentenced for Conspiracy to Pay Bribes in Stock SalesRead the Press Release
BROOKLYN, NY – Earlier today, at the federal courthouse in Brooklyn, Roland Kaufmann, a Swiss citizen and CEO of Axius Inc., was sentenced to 16 months’ imprisonment for conspiring to bribe stock brokers. As required by his plea agreement, Kaufmann forfeited $290,000, with a portion to be remitted to identified victims of related criminal conduct. The court also imposed a fine of $450,000 and a $100 special assessment. Previously, on January 11, 2013, Kaufmann pleaded guilty to one count of conspiracy to violate the Travel Act. The sentencing proceeding was held before the Hon. John Gleeson, United States District Judge.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
According to court documents, Kaufmann controlled Axius, Inc., a purported holding company and business incubator located in Dubai. As part of the scheme, the defendant and his co-conspirator, Jean Pierre Neuhaus, enlisted the assistance of an individual who they believed had access to a group of corrupt stock brokers, but who was, in fact, an undercover law enforcement agent. Court documents reveal that they instructed the undercover agent to direct brokers to purchase Axius shares in return for a secret kickback of approximately 26 to 28 percent of the share price. Kaufman and Neuhaus also instructed the undercover agent as to the price the brokers should pay for the stock and that the brokers were to refrain from selling the Axius shares they purchased on behalf of their clients for a one-year period. By preventing sales of Axius stock, Kaufmann and Neuhaus intended to maintain the fraudulently inflated share price for Axius stock.
Kaufmann and Neuhaus were arrested on March 8, 2012. On October 10, 2012, Neuhaus pleaded guilty to conspiracy to commit securities fraud and violate the Travel Act. Neuhaus was in custody from his arrest through February 15, 2013, when he was sentenced to time served and a $10,000 fine.
“Roland Kaufman sought to game the system from overseas by inflating the price of his company’s stock on U.S. capital markets,” said U.S. Attorney Lynch. “Instead of riches, he reaped prison time, as well as the forfeiture of his ill-gotten gains.” Ms. Lynch extended her grateful appreciation to the FBI New York Field Office and the IRS New York Field Office, the agencies responsible for leading the government’s investigation, and Ms. Lynch and Acting Assistant Attorney General Raman thanked the Securities and Exchange Commission for its assistance in this matter.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’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 including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.StopFraud.gov.
The case is being prosecuted by Assistant U.S. Attorney Ilene Jaroslaw and Trial Attorney Justin Goodyear of the Criminal Division’s Fraud Section, with assistance from Fraud Section Trial Attorney Nathan Dimock.
The Defendant:ROLAND KAUFMANN
Age: 60Axius CEO Roland Kaufmann Sentenced for<br /> Conspiracy to Pay Bribes in Stock SalesRead the Press Release
Roland Kaufmann, CEO of Axius Inc., was sentenced today to serve 16 months in prison for his role in a conspiracy to bribe purported stock brokers and manipulate the stock of a company he controlled, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Eastern District of New York Loretta Lynch.
Kaufmann, 60, a Swiss citizen, was sentenced today by U.S. District Judge John Gleeson in the Eastern District of New York. In addition to his prison term, Kaufmann was sentenced to serve three years of supervised release and ordered to pay a fine of $450,000.
Kaufmann pleaded guilty in January 2013 to one count of conspiracy to violate the Travel Act in connection with a scheme to bribe stock brokers to purchase the common stock of a company he controlled and to manipulate its stock price. As part of his plea agreement, Kaufmann forfeited $298,740 gained through this crime.
According to court documents, Kaufmann controlled Axius, Inc., a purported holding company and business incubator located in Dubai. As part of the scheme, the defendant and his co-conspirator, Jean Pierre Neuhaus, enlisted the assistance of an individual who they believed had access to a group of corrupt stock brokers, but who was, in fact, an undercover law enforcement agent. Court documents reveal that they instructed the undercover agent to direct brokers to purchase Axius shares in return for a secret kickback of approximately 26 to 28 percent of the share price. Kaufman and Neuhaus also instructed the undercover agent as to the price the brokers should pay for the stock and that the brokers were to refrain from selling the Axius shares they purchased on behalf of their clients for a one-year period. By preventing sales of Axius stock, Kaufmann and Neuhaus intended to maintain the fraudulently inflated share price for Axius stock.
Jean Pierre Neuhaus has pleaded guilty and been sentenced for his role in the scheme.
The case is being prosecuted by Trial Attorney Justin Goodyear of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Ilene Jaroslaw, with assistance from Fraud Section Trial Attorney Nathan Dimock. The case was investigated by the FBI New York Field Office and the Internal Revenue Service New York Field Office. The Department also recognizes the substantial assistance of the U.S. Securities and Exchange Commission.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’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 including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.StopFraud.gov.
Arkansas Man Pleads Guilty to Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that Jacob H. Lehnherr, age 38, of Little Rock, Arkansas appeared before U.S. District Judge Karen E. Schreier on June 10, 2013 and pled guilty to Failure to Pay Legal Child Support.
The maximum penalty upon conviction is two years imprisonment; a $250,000.00 fine; one year supervised release; one additional year of custody upon revocation; a $100.00 assessment fee; and child support restitution amount owing at the time of sentencing.
Lehnherr was ordered by the Second Judicial Circuit Court, Minnehaha County, South Dakota to pay $346.67 per month for his minor child, commencing May 1, 2001. At the time of indictment, he had made payments in June and July of 2012, but prior to that he had not made a child support payment since July of 2010.
The investigation was conducted by the Department of Health and Human Services, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Thomas J. Wright.
A presentence investigation was ordered and a sentencing date was set for August 29, 2013. The defendant was released on bond pending sentencing.
Antonio Mathias Peterson Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on June 13, 2013, before Senior U.S. District Judge Charles C. Lovell, ANTONIO MATHIAS PETERSON, a 30-year-old resident of East Helena, was sentenced to a term of:
Prison: 15 months
Special Assessment: $100
Restitution: $63,410
Supervised Release: 3 years
PETERSON was sentenced in connection with his guilty plea to social security fraud.
In an Offer of Proof filed by Assistant U.S. Attorney Bryan R. Whittaker, the government stated it would have proved at trial the following:
Beginning on April 8, 2008, and continuing into December 2011, PETERSON ed and failed to disclose that he had been convicted of a felony offense and that his son was not in his care and custody.
On April 8, 2008, PETERSON applied for surviving spouse with child in care benefits. He also applied for auxiliary survivor benefits on behalf of his minor son, AP, and to be his representative payee. The claims were based on the death of his spouse Kelli Renee Peterson. PETERSON made false statements regarding his and AP's living arrangements.
On April 13, 2008, the SSA sent PETERSON a "Notice of Award" letter designating PETERSON as the representative payee for AP's benefits and awarding his parent in care benefits. Accompanying the letter were two SSA pamphlets entitled "What you need to know when you get retirement or survivors benefits" and "A Guide for Representative Payees." The letter and pamphlets clearly explained PETERSON's legal reporting responsibilities regarding events affecting eligibility to payments.
PETERSON began receiving auxiliary survivor benefits for AP and for himself as a surviving spouse with a child in care, paid retroactively from March 2008 through December 2011.
On September 25, 2009, October 28, 2009, and September 22, 2010, PETERSON completed and signed various Social Security forms stating that AP resided with him and he used all the SSA benefit money for AP. But AP actually resided with his grandparents during the specified periods.
Agents interviewed the grandmother who stated that she had custody of AP since March 2008. She paid AP's living and healthcare expenses. AP was enrolled in school with the grandparents as the primary points of contact. The grandparents never received any financial support from PETERSON for AP. The grandmother was unaware that PETERSON was receiving Social Security benefits on behalf of AP.
On March 12, 2009, the grandparents were appointed as legal guardians of AP by the First Judicial District Court, Lewis & Clark County.
In December 2010, PETERSON was arrested for felony DUI and was incarcerated from 12/22/10 to 6/20/2011. PETERSON did not report this event to the SSA.
Agents interviewed PETERSON at his residence and he acknowledged his Social Security benefits application and admitted that he understood his legal reporting requirements to the SSA for events affecting eligibility to benefits. These included the custody and living arrangements of AP and his prior incarceration. He admitted that he knew he was required to report these events because they might affect his eligibility for continued SSA payments. PETERSON also estimated that the grandparents had custody of AP at least 70% of the time and he would take AP sometimes on weekends.
In approximately August 2008, PETERSON purchased a house in East Helena, and used AP's benefits to pay the mortgage payments.
AP's change in living arrangements, change in address, and PETERSON's incarceration were events required to be reported to the SSA because these events would affect his eligibility for benefits. PETERSON's failure to report resulted in an overpayment of Social Security benefits to which PETERSON would not have otherwise been entitled.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that PETERSON will likely serve all of the time imposed by the court. In the federal system, PETERSON does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Social Security Administration - Office of Inspector General.
Anchorage Man sentenced to 18 months in prison for drug conpiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a man from Anchorage was sentenced in federal court in Anchorage for his role in an Anchorage and Fairbanks drug conspiracy.
Rock E. Phelps II, 26, a/k/a, “Skitzo Scoe,” from Anchorage, Alaska, was sentenced today by U.S. District Court Chief Judge Ralph R. Beistline. Phelps received a sentence of 18 months in prison and 3 years of supervised release. Phelps had previously pled guilty to an indictment charging him and his co- conspirators with one count of drug conspiracy.
According to Assistant U.S. Attorney Kelly Cavanaugh, who prosecuted the case, Phelps was a member of a drug trafficking organization in Anchorage and Fairbanks that between 2009 and February 2012, sold powder cocaine, marijuana, and oxycodone pills in Anchorage and Fairbanks. Phelps sold cocaine in Anchorage. On four occasions in February 2011, Phelps sold cocaine to a confidential informant; he possessed 70 grams of cocaine in his residence that he intended to distribute, and possessed a firearm. Phelps also facilitated the sale of cocaine between another individual and his co-conspirator DeMarr Moultrie.
Phelps and other members of the conspiracy attempted to conceal their drug trafficking by claiming they were involved in a legitimate business, specifically that they were “artists,” employees, or promoters of concerts. Members of this conspiracy would record rap and hip hop songs, post videos on Youtube.com, and perform local shows in Anchorage and Fairbanks. Much of their music glorified the lifestyle of selling illegal narcotics and committing other crimes. The lavish and extravagant lifestyle portrayed in their music and videos was supported by their sales of illegal narcotics. Phelps had no record of serious or consistent employment since dropping out of high school in 2005, and only received minor, nominal payments for work as a rap recording and performance artist. The main source of his income since dropping out of high school was from the distribution of illegal narcotics in Anchorage.
Prior to imposing a sentence, Judge Beistline informed the defendant he had to take responsibility for his own actions and he needed to find some better individuals to associate with in the future.
Phelps was indicted along with 13 other members of the conspiracy located in Anchorage and Fairbanks. Christopher Anderson was previously sentenced to 14 months prison on November 2, 2012; DeMarr Moultrie was sentenced to 40 months prison on May 1, 2013; Jeraelyn Hill was sentenced to 66 months prison on May 28, 2013; and Jerry Wormley was sentenced to 36 months prison on May 31, 2013.
Donnell Johnson, Joshua Mustovich, Mihla Hall, Antonio Fleming, Dalon Johnson, Tevoris Carter, Emma Shine, and Brent Gunnels have pled guilty for their roles in connection with the conspiracy and await sentencing. Terrance Fleming has a pending trial scheduled for August 2013.
Ms. Loeffler commended the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Postal Inspection Service, the Internal Revenue Service Criminal Investigation Division, and the Anchorage Police Department for the investigation leading to the successful prosecution of Phelps.
Abilene Man Sentenced to 10 Years in Federal Prison on Child Pornography ConvictionRead the Press Release
ABILENE, Texas — Roy Paul Granger, 42, was sentenced yesterday by U.S. District Judge Jorge A. Solis to 10 years in federal prison, following his guilty plea in January 2013 to one count of receipt of child pornography. Granger has been in custody since January 25, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Granger owned a computer, which he kept at his residence in Abilene, Texas, that was connected to the Internet. In April 2012, while searching online, using peer-to-peer software, for sexually explicit images of minors, Granger downloaded an image of child pornography onto his personal computer.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Abilene Police Department and the Lubbock Police Department’s Internet Crimes Against Children Task Force investigated the case. Assistant U.S. Attorney Steven M. Sucsy was in charge of the prosecution.
Thursday 13 June 2013
Yakima Drug Trafficker Sentenced to Ten Years in Federal PrisonRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Ruben Ornelas, age 33, of Yakima, Washington, was sentenced today after being convicted of distribution of methamphetamine. Chief United States District Judge Rosanna Malouf Peterson sentenced Ornelas to a ten-year term of imprisonment to be followed by a five-year term of court supervision following release from Federal prison.
In October 2012, Ornelas was charged by Indictment with distributing methamphetamine on four separate occasions in Yakima, Washington during the summer of 2012. Ornelas later pleaded guilty to one count of distributing over 50 grams of actual methamphetamine.
Michael C. Ormsby said: "I commend the DEA for its tenacious investigative efforts in this case, as well as its continuing commitment to rid the Eastern District of Washington of methamphetamine. The ten year jail sentence meted out today is plainly appropriate for a drug dealer trafficking in the significant quantity of methamphetamine involved in this case."
The investigation of this case was conducted by the Drug Enforcement Administration. This case was prosecuted by Benjamin D. Seal, an Assistant United States Attorney for the Eastern District of Washington.
12-CR-2077-RMP
Wyoming Couple Indicted for Tax EvasionRead the Press Release
In an indictment unsealed on June 12, 2013, Robert and Judy Sathre, of Sheridan, Wyo. were charged by a federal grand jury in Cheyenne, Wyo., for conspiring to defraud the IRS and tax evasion relating to taxes owed by Robert Sathre for tax years 1995 and 1996. Judy Sathre was also charged with filing a false tax return for tax year 2007.
According to the indictment, Robert Sathre sold a Minnesota business and received installment payments in 1995 and 1996 for more than three million dollars. Robert Sathre concealed his income by filing a 1995 tax return in which he reported only $64,928 in total income. Robert Sathre then purchased land and set up another business, a gas station/convenience store in Sheridan, Wyo. known as the Rock Stop.
According to the indictment, the Sathres concealed assets by opening a foreign bank account in the Caribbean island of Nevis and by using purported trusts. In a ten-month period spanning 2005-2006, Mr. Sathre sent over $500,000 to the account in Nevis to keep the funds out of reach from the IRS. When Robert Sathre sold the Rock Stop in 2007, he had over $1,250,000 from the sale proceeds wired to the trust account of a Wyoming law firm. Later the Sathres directed the law firm to wire $900,000 from the trust account to their account at the Bank of Nevis. They also provided a false declaration and false promissory note to the Bank of Nevis to conceal the source of this transfer. Robert Sathre obtained a debit card linked to the foreign account to access funds locally. He also provided the Bank of Sheridan with an IRS form on which he falsely claimed that he was neither a citizen nor a resident of the United States.The indictment also alleges that the Sathres tried to conceal their ownership of real estate. They used a purported trust to encumber their residence at Troon Place in Sheridan and to conceal their ownership of property in Hennepin County in Minnesota. To conceal ownership of the Rock Stop, they similarly used a second purported trust, at one point resigning as trustees and appointing their teenage daughter as the trustee.
The indictment also charges Judy Sathre with one count of filing a false tax return for 2007. The indictment alleges that the return was false both for reporting only $42 in interest income and for failing to disclose that she had a financial interest and signatory authority over the bank account at the Bank of Nevis.
A trial date has not been scheduled. An indictment is merely an accusation, and every defendant is presumed innocent unless and until proven guilty.
The conspiracy and tax evasion charges each carry a maximum potential penalty of five years in prison and a fine of $250,000. The false return charge carries a maximum potential penalty of three years in prison and a $250,000 fine.This case is being prosecuted by Trial Attorneys Ellen Quattrucci and Ignacio Perez de la Cruz of the Justice Department’s Tax Division and was investigated by IRS – Criminal Investigation.
Virginia Man Pleads Guilty to Child Pornography ChargesRead the Press Release
WASHINGTON – Jeffrey Klenk, 24, of Alexandria, Va., has pled guilty to federal charges of distribution and possession of child pornography, U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD) announced today.
Klenk entered the guilty plea on June 12, 2013, in the U.S. District Court for the District of Columbia. The Honorable Richard J. Leon is to sentence him on Sept. 12, 2013. Klenk faces a maximum sentence of 20 years in prison for distribution of child pornography and up to 10 years in prison on the possession charge, as well as financial penalties. He also will be required to register as a sex offender for a minimum of 25 years.
According to the government's evidence, in September and October of 2012, Klenk contacted a man he believed to be the father of an adolescent girl on a social network site. That man turned out to be an undercover officer with the FBI's Child Exploitation Task Force. Over a month-long period, Klenk engaged in online e-mail and instant message conversations with the undercover officer.
During this period of time, Klenk used the computer at his home to send the undercover officer a total of 45 unique images of child pornography, as well as several pictures of child erotica and clothed and unclothed children. On Oct. 18, 2012, Klenk’s residence was searched pursuant to a warrant, and various items were seized, including videos of child pornography. Klenk was arrested that day. All told, officers recovered approximately 13 videos and over 325 images of child pornography from the defendant’s computers and computer equipment.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force who investigated the case. They also commended the efforts of Assistant U.S. Attorney Cassidy Kesler Pinegar, who is prosecuting the case, and Assistant U.S. Attorney Catherine K. Connelly, who is assisting with forfeiture issues.
13-207Utah Man Charged with Filing False Claims for Tax RefundsRead the Press Release
A federal grand jury in Salt Lake City yesterday returned an indictment charging Dick Reid Jenkins, a resident of Heber City, Utah with eighteen counts of presenting false claims to the United States.
According to the indictment, in September 2008, Dick Jenkins filed a false 2007 income tax return for himself which claimed an income tax refund of $402,920. Then, in October 2008, Jenkins filed a false amended 2004 income tax return, which claimed an income tax refund of $434,261. Both false claims were based on the use of false Form 1099-OID, Original Issue Discount. In addition to his own false returns, from September 2008 through February 2009, Jenkins caused sixteen other false federal income tax returns to be filed on behalf of other individuals. These other false tax returns also used false Form 1099-OID and claimed federal income tax refunds totaling $8,407,623. The indictment further alleges that Dick Jenkins was licensed by the state of Utah as a Certified Public Accountant at all times relevant to these charges.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty. If convicted, Jenkins faces a maximum of 90 years in prison.
The case is being investigated by IRS-Criminal Investigation and is being prosecuted by Tax Division Trial Attorneys Stuart Wexler and Michael Romano.
Utah Man Charged with Filing False Claims for Tax RefundsRead the Press Release
SALT LAKE CITY – A federal grand jury in Salt Lake City returned an indictment Wednesday afternoon charging Dick Reid Jenkins, a resident of Heber City, Utah with 18 counts of presenting false claims to the United States.
According to the indictment, in September 2008, Jenkins filed a false 2007 income tax return for himself which claimed an income tax refund of $402,920. Then, in October 2008, Jenkins filed a false amended 2004 income tax return, which claimed an income tax refund of $434,261. Both false claims were based on the use of false Form 1099-OID, Original Issue Discount. In addition to his own false returns, from September 2008 through February 2009, Jenkins caused sixteen other false federal income tax returns to be filed on behalf of other individuals. These other false tax returns also used false Form 1099-OID and claimed federal income tax refunds totaling $8,407,623. The indictment further alleges that Jenkins was licensed by the state of Utah as a Certified Public Accountant at all times relevant to these charges.
An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty.
The case is being investigated by IRS-Criminal Investigation and is being prosecuted by U.S. Department of Justice Tax Division Trial Attorneys Stuart Wexler and Michael Romano.
United States and Arkansas File Joint Complaint Against ExxonMobil for Pegasus Pipeline Oil Spill in Mayflower, ArkansasRead the Press Release
Today the United States and the state of Arkansas filed a joint enforcement action against ExxonMobil Pipeline Company and Mobil Pipe Line Company (ExxonMobil) in federal district court in Little Rock, Ark. The complaint addresses ExxonMobil’s unlawful discharge of heavy crude oil from a 20-inch-diameter interstate pipeline – the Pegasus Pipeline – that ruptured in Mayflower, Ark., on March 29, 2013.
As alleged in the complaint, a segment of the Pegasus Pipeline ruptured in a residential neighborhood in the town of Mayflower. The pipe was buried approximately two feet below the ground at that location. The oil spilled directly into the neighborhood and then into nearby waterways, including a creek, wetlands, and Lake Conway. Residents were forced to evacuate their homes due to the hazardous conditions in the neighborhood resulting from the spill. The oil has contaminated land and waterways and impacted human health and welfare, wildlife, and habitat. Cleanup efforts are still ongoing, and many residents still have not been able to return home.The Pegasus Pipeline runs approximately 850 miles from Patoka, Ill., to Nederland, Texas. The pipeline is used to transport Canadian heavy crude oil. The pipeline originally was constructed in the 1940s.
The complaint alleges six causes of action against the defendants. The United States, on behalf of the U.S. Environmental Protection Agency (EPA), seeks civil penalties and injunctive relief under the federal Clean Water Act for the oil spill. The state of Arkansas, on behalf of the Arkansas Department of Environmental Quality (ADEQ) by the authority of the Arkansas Attorney General, seeks civil penalties for violations of the Arkansas Hazardous Waste Management Act and the Arkansas Water and Air Pollution Control Act. The state also seeks a declaratory judgment on ExxonMobil’s liability for payment of removal costs and damages related to the spill pursuant to the federal Oil Pollution Act.
Related Materials:
Exxon Complaint
Union County, N.J., Man Charged with Defrauding Sellers on Ebay Online Auction SiteRead the Press Release
NEWARK, N.J. – A Union County man surrendered to law enforcement officers today for allegedly defrauding hundreds of sellers of foreign and antique banknotes on the eBay online auction site, U.S. Attorney Paul J. Fishman said.
David D’Aries, 49, of Summit, N.J., is charged by complaint with one count of mail fraud. D’Aries is expected to make his initial appearance today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the criminal Complaint:
From June 2007 through October 2012, D’Aries devised a scheme to defraud individuals from around the world by posing as a buyer interested in purchasing rare and antique foreign banknotes for bid on eBay. D’Aries, as the winning bidder in approximately 400 eBay transactions, made payment for the auctioned item via PayPal or credit card, received the item from the eBay seller via the United States mail or other commercial interstate carrier, and then falsely claimed to various credit card companies that the item was never received from the seller or was an unauthorized charge. D’Aries posed as three different individuals, including his deceased father, in his fraudulent eBay transactions.
Losses to eBay/PayPal and the various eBay sellers as a result of D’Aries’ fraudulent transactions total approximately $122,000. A search of D’Aries’ home by law enforcement on June 30, 2011, revealed several thousand foreign banknotes and 165 pieces of mail from around the world that were addressed to D’Aries and the other identities he allegedly used.
D’Aries faces a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates in Newark with the investigation leading to today’s arrest. He also thanked the Summit Police Department and the Union County Prosecutor’s Office for their roles in the case.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.13-248
Defense counsel: Alan Zegas Esq., Chatham, N.J.D'Aries, David Complaint
U.S. Attorney Machen to Host Youth Summit on June 27 at Friendship Collegiate Academy in Northeast Washington- Third Annual Event Aimed at Breaking the Silence on Youth Violence - Free Program Includes Musical Performances, Workshops, Information-Read the Press Release
WASHINGTON - U.S. Attorney Ronald C. Machen Jr., the U.S. Attorney’s Office for the District of Columbia, the Project Safe Neighborhoods Task Force, the East River Family Strengthening Collaborative, and law enforcement and community partners are sponsoring a Youth Summit on Thursday, June 27, 2013 at Friendship Collegiate Academy.
Youths from the District of Columbia are invited to the free program, which runs from 11 a.m. to 4 p.m. Friendship Collegiate Academy, at 4095 Minnesota Avenue NE, is conveniently located directly across the street from the Minnesota Avenue Metro station in order to provide accessibility for students to attend.
This is the office’s third annual Youth Summit, which assembles young people from under-served neighborhoods in the District of Columbia to discuss the most pressing public safety challenges facing their communities. Previous summits have attracted more than 300 youth participants.
The goal of the Youth Summit is to reach out to area youth on current public safety topics in an informative and inspiring way. Presentations will address a variety of issues facing teens in the community. Most importantly, the Youth Summit this year will examine precursors to violence in an effort to deter youth from negative behaviors.
Presentations will focus on anti-bullying, sexual assault violence prevention, gang awareness, and illegal drug deterrence. The Youth Summit will be comprised of dynamic speakers, entertainment, and break-out sessions for youth based on both age and gender.
The older youth will have an opportunity to learn from speakers who will emphasize the dangerous consequences of violence for both perpetrator and victims. The discussion will focus heavily on educating our youth regarding sexual assault, healthy relationships and where to seek help if they are a witness to or a victim of violence.
The younger students will gain valuable knowledge on distinguishing appropriate conduct and seeking help from victimization.
All of the youth will be provided invaluable resources at the Youth Summit, including anti-bullying guidance and information about the dangers of K-2 Spice. Lastly, in an effort to prove to our youth that fun does not have to include negative behavior, entertainment will be provided by local performers and a national recording artist.
Several collaborative partners, including the Columbia Heights Shaw/Family Collaborative, D.C. Department of Health, D.C. Rape Crisis Center, Street Wize Foundation, and the National Center for Missing and Exploited Children, will be coming together to present the day’s programs. The effort is supported by Project Safe Neighborhoods, a Department of Justice initiative aimed at reducing gun and gang crimes. People with questions or interest in bringing a youth group to the Youth Summit, may contact Executive Assistant U.S. Attorney for External Affairs, Wendy Pohlhaus (202)252-6930 or [email protected].
13-206Two Men Charged with Marijuana Trafficking OffensesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that a federal grand jury sitting in Hartford returned an indictment today charging KEVIN J. DUNBAR, 44, of Manchester, and OVES ST. ORBIN WRIGHT, 56, of Massapequa, N.Y., with marijuana trafficking offenses.
According to allegations contained in court documents, on May 19, 2013, U.S. Customs and Border Patrol (CPB) agents in western Texas conducted a search of a tractor trailer and discovered approximately 315 pounds of marijuana (approximately 143 kilograms) secreted in a shipping crate. CBP agents contacted Drug Enforcement Administration (DEA) agents in El Paso who determined that the crate was destined for a shipping facility in Enfield, Conn. On May 29, 2013, Connecticut DEA agents established surveillance at the Enfield shipping facility and observed DUNBAR and WRIGHT unpack the crate, load the contents into a van and travel to a storage facility in East Hartford, where they were arrested.
The indictment charges DUNBAR and WRIGHT with one count of conspiracy to possess with the intent to distribute 100 kilograms or more of marijuana, and one count of attempting to possess with the intent to distribute 100 kilograms or more of marijuana. Each charge carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
DUNBAR and WRIGHT have been detained since their arrests on May 29.
Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration, with the assistance of U.S. Customs and Border Patrol. The case is being prosecuted by Assistant United States Attorney Geoffrey M. Stone and Special Assistant United States Attorney Michael Ahearn.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Two Maryland Women Indicted in Fraudulent Tax Refund SchemeRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Sheila Anderson-Cloude, a/k/a Sheila Anderson, age 33, of Nottingham, Maryland, and Tonia Patrice Lawson, age 42, of Baltimore, on charges related to a conspiracy to obtain fraudulent tax refunds, sometimes using the personal information of other individuals, without their knowledge or permission. The indictment was returned on June 11, 2013.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Kathryn Jones, U.S. Department of Transportation, Office of Inspector General, Washington Regional Office.
“The IRS continues to work closely with the tax preparation industry to protect the American public,” said Special Agent in Charge Thomas J. Kelly of IRS - Criminal Investigation, Washington, D.C. Field Office. “Return preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating cases just like these. Taxpayers should be very selective in choosing a return preparer, and have confidence knowing that person will prepare accurate tax returns and safeguard their financial information.”
The 27-count indictment alleges that from February 8, 2010 through February 20, 2012, Anderson-Cloude and Lawson conspired to enrich themselves by filing and causing others to file false federal income tax returns in order to obtain tax refunds to which they were not entitled.
The indictment charges that Anderson-Cloude obtained the identifying information of individuals, including their names, dates of birth and social security numbers, in order to file fraudulent tax returns. According to the indictment, Anderson-Cloude then prepared and filed or caused to be filed at least 13 false federal tax returns, all of which fraudulently claimed refunds in amounts between $4,800 and $8,907. As a result of the filing of these false tax returns, the indictment alleges that Anderson-Cloude received seven tax refunds to which she was not entitled, in amounts ranging from $1,000 to $5,372, and Lawson received four fraudulent tax refunds, in amounts ranging from $2,000 to $6,875. According to the indictment, Lawson made payments to some of the taxpayers, using funds obtained from the fraudulently tax refunds. Finally, the indictment alleges that when questioned by a Special Agent with IRS Criminal Investigations, Anderson-Cloude made false statements by claiming that she never kept more than $500 for preparing a return and that she never made up numbers to put on the tax returns she prepared.
The defendants face a maximum sentence of 10 years in prison for conspiring to defraud the government by claiming false tax refunds and for theft of public money. Anderson-Cloude also faces a maximum of five years in prison for each of 12 counts of making a false claim for a tax refund and for making a false statement. Anderson-Cloude also faces two years in prison, consecutive to any other sentence, for aggravated identity theft. The defendants have an initial appearance scheduled for 3:45 p.m. today in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised IRS Criminal Investigation and DOT-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory R. Bockin, who is prosecuting the case.
Two Claremont Men Plead Guilty to Conspiring to Distribute MethamphetamineRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 33-year-old man from the southeastern Minnesota community of Claremont pleaded guilty to conspiring to distribute more than 500 grams of methamphetamine. Michael Steven Schoenfelder specifically pleaded guilty to one count of conspiracy to distribute 50 or more grams of methamphetamine. Schoenfelder, who was indicted along with Clancy Shane Amy on May 6, 2013, entered his plea before United States District Court Judge Richard H. Kyle.
On June 12, 2013, Amy, age 38, also from Claremont, pleaded guilty to one count of conspiracy to distribute 50 or more grams of methamphetamine.
In their respective plea agreements, the defendants admitted that from at least August 2012 through March 2013, they conspired to distribute methamphetamine and other controlled substances from Mexico and Texas to areas within southeastern Minnesota. Both also admitted obtaining and selling approximately one pound of methamphetamine. In addition, Amy admitted that between January and March 2013, he sold methamphetamine to law enforcement in several arranged controlled purchases. On April 16, 2013, during the execution of a search warrant at Amy’s residence, authorities seized approximately 112 grams of methamphetamine, numerous plastic baggies, nine-millimeter and .38-caliber ammunition, two digital scales, a nine-millimeter handgun, a .22-caliber, semi-automatic handgun, a 12-gauge shotgun, and a safe that contained $615, marijuana, and methamphetamine.
For their crimes, the defendants face a potential maximum penalty of 40 years in prison. Judge Kyle will determine their sentences at future hearings, yet to be scheduled.
This case is the result of an investigation by the U.S. Drug Enforcement Administration, the Minnesota Bureau of Criminal Apprehension, the Minnesota South Central Drug Investigation Unit, and the Southeastern Minnesota Gang and Narcotics Task Force. It is being prosecuted by Assistant U.S. Attorney Allen A. Slaughter.Ten Defendants Sentenced for Illegal Hunting Activities and Related OffensesRead the Press Release
The Sentences Are The Result Of A Four-Year, Multi-Agency Operation Targeting Illegal Hunting Of Wildlife In North Carolina And Georgia
BRYSON CITY, N.C. – Ten defendants were sentenced on Monday, June 10, 2013, in U.S. District Court for illegal hunting activities involving black bears and other wildlife and related offenses, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. The sentences are the result of “Operation Something Bruin,” a multi-agency initiative focused on the illegal poaching of bears and other wildlife in North Carolina and Georgia.
U.S. Attorney Tompkins is joined in making today’s announcement by Steve Ruppert, Special Agent in Charge for the Southern Region of the U.S. Forest Service and Col. Dave Caveny, Chief of the Division of Law Enforcement for the North Carolina Wildlife Resources Commission.
In February 2013, state and federal wildlife officials in North Carolina and Georgia announced the results of a four-year undercover investigation focused on illegal activities involving black bears and other wildlife in North Carolina and Georgia. The multi-agency initiative was the largest of its kind in recent years and resulted in more than 80 wildlife violators and over 980 violations. Primary violations documented by Operation Something Bruin stem from illegal bear hunting and poaching in North Carolina and Georgia, but include an array of state and federal wildlife and game law charges. The agencies involved in this investigation include state wildlife agencies, the U.S. Forest Service, the U.S. Fish and Wildlife Service and the National Park Service.
Officers with the North Carolina Wildlife Resources Commission, U.S. Forest Service and the Georgia Department of Natural Resources infiltrated poaching circles to document violations including bear baiting, illegal taking of bears, deer and other wildlife, illegal use of dogs, operation of illegal bear enclosures in North Carolina, and guiding hunts on national forest lands without the required permits. For more information about Operation Something Bruin and its continued success please visit: www.operationsomethingbruin.org.
The following defendants were sentenced on June 10, 2013, before U.S. Magistrate Judge Dennis L. Howell:
• Chad Burchfield, 34, of Robbinsville, N.C., pleaded guilty to one count of hunting feral swine at night. He was sentenced to 30 days in prison. In addition, Judge Howell revoked Burchfield’s right to hunt or fish for a period of two years, and ordered the defendant to pay a $10.00 assessment fee and a $25.00 administrative fee.
• Patrick Burchfield, 24, of Robbinsville, pleaded guilty to one count of hunting feral swine at night. He was sentenced to 30 days in prison and ordered to pay a $10.00 assessment fee and a $25.00 administrative fee. In addition, the defendant’s right to hunt or fish was revoked for a period of two years.
• Jessie Jenkins, 23, of Robbinsville, pleaded guilty to hunting feral swine at night. He was sentenced to 30 days in prison, was ordered to pay a $10.00 assessment fee and a $25.00 administrative fee and is prohibited from hunting or fishing for a period of two years.
• Kenneth Collins, 44, of Robbinsville, pleaded guilty to providing a hunting guide service on National Forest land without a permit. Judge Howell sentenced Collins to 30 days in prison. He was also ordered to pay a $10.00 special assessment fee, a $25.00 administrative fee and restitution of $450.00 to the U.S. Forest Service. Collins’ hunting and fishing rights were also revoked for a period of two years.
• Casey Collins, 26 of Robbinsville, pleaded guilty to two counts of providing a hunting guide service on National Forest land without a permit. He was sentenced to 15 days in prison and was ordered to pay a $10.00 special assessment fee and a $25.00 administrative fee. His hunting and fishing rights were revoked for a period of two years.
• Michael Sellers, 20, of Robbinsville, pleaded guilty to one count of proving a hunting service without a permit. He was sentenced to one year of probation and was ordered to surrender his hunting license.
• Ricky Owens, 48, of Robbinsville, pleaded guilty to one count of failure to obtain a special use permit needed to operate a commercial activity on National Forest land. He was sentenced to 15 days in prison and was ordered to pay a $10.00 special assessment fee and a $25.00 administrative fee.
• Robert Watson, 46, of Morganton, N.C., pleaded guilty to one count of aid and abet the illegal taking of a black bear. He was sentenced to 30 days in prison and was ordered to pay a $10.00 special assessment fee and a $25.00 administrative fee.
• Terry Ratliff, 55, of Opelica, Alabama, was ordered to pay a collateral of $1,500 for driving on a closed U.S. Forest Service Road.
• Brian Quacca, 41, of Groesbeck, Texas, pleaded guilty to one count of using the National Forest Service for commercial purposes without the required permit. On May 25, 2013, he was ordered to pay a fine in the amount of $1500.00. In addition, he was ordered to pay a $10.00 special assessment fee and a $25.00 administrative fee.
On June 10, 2013, Brent Fox, entered a plea of guilty to one count of illegal taking of a black bear and is awaiting sentencing. The defendants committed the offenses within the Nantahala National Forest with the exception of Robert Watson who committed his offense within Pisgah National Forest.
In making today’s announcement U.S. Attorney Tompkins stated, “We anticipate that the success of Operation Something Bruin will send a strong message to poachers and would-be violators to think twice before they engage in illegal hunting activities. Together with our federal and state law enforcement partners we will combine forces to combat illegal hunting, protect our wildlife and conserve our natural resources. I commend the efforts of all involved in this investigation and I thank our law enforcement partners for their continued dedication to this important mission.”
“The continued success of Operation Something Bruin is a fine example of state and federal agencies coordinating efforts to protect the resources of our national forests,” said Steve Ruppert, Special Agent in Charge for the Southern Region of the U.S. Forest Service. “The Forest Service appreciates the hard work of its law enforcement officers, the North Carolina Wildlife Resources Commission, the U.S. Fish and Wildlife Service and the U.S. Attorney’s Office in bringing these individuals to justice.”
“These penalties reflect the seriousness of the crimes committed against conservation, our wildlife resources and the hunting heritage,” said Col. Dale Caveny, Chief of the Division of Law Enforcement for the N.C. Wildlife Resources Commission. “Operation Something Bruin documented hundreds of wildlife violations and the successful conclusion of these federal cases will make would-be violators think twice before breaking the law. Our long-term goal is to deter illegal wildlife activities from taking place in the future and serve notice to everyone that wildlife officers are ever vigilant in the service of conservation and public safety.”
The investigation was conducted by the United States Forest Service, the North Carolina Wildlife Resources Commission, the U.S. Fish and Wildlife Service the Georgia Department of Natural Resources and the National Park Service. The prosecution was handled by Assistant U.S. Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville.
To report illegal hunting activities call the appropriate Law Enforcement contacts: The North Carolina State Wildlife Hotline at 1-800-662-7137, U.S. Fish and Wildlife Service, 1-828-258-2084 the National Forests at 1-828-231-0288 or The Great Smoky Mountains National Park at 1-865-436-1230.
Ten Defendants Sentenced for Illegal Hunting Activities and Related OffensesRead the Press Release
The Sentences Are The Result Of A Four-Year, Multi-Agency Operation Targeting Illegal Hunting Of Wildlife In North Carolina And Georgia
BRYSON CITY, N.C. – Ten defendants were sentenced on Monday, June 10, 2013, in U.S. District Court for illegal hunting activities involving black bears and other wildlife and related offenses, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. The sentences are the result of “Operation Something Bruin,” a multi-agency initiative focused on the illegal poaching of bears and other wildlife in North Carolina and Georgia.
U.S. Attorney Tompkins is joined in making today’s announcement by Steve Ruppert, Special Agent in Charge for the Southern Region of the U.S. Forest Service and Col. Dave Caveny, Chief of the Division of Law Enforcement for the North Carolina Wildlife Resources Commission.
In February 2013, state and federal wildlife officials in North Carolina and Georgia announced the results of a four-year undercover investigation focused on illegal activities involving black bears and other wildlife in North Carolina and Georgia. The multi-agency initiative was the largest of its kind in recent years and resulted in more than 80 wildlife violators and over 980 violations. Primary violations documented by Operation Something Bruin stem from illegal bear hunting and poaching in North Carolina and Georgia, but include an array of state and federal wildlife and game law charges. The agencies involved in this investigation include state wildlife agencies, the U.S. Forest Service, the U.S. Fish and Wildlife Service and the National Park Service.
Officers with the North Carolina Wildlife Resources Commission, U.S. Forest Service and the Georgia Department of Natural Resources infiltrated poaching circles to document violations including bear baiting, illegal taking of bears, deer and other wildlife, illegal use of dogs, operation of illegal bear enclosures in North Carolina, and guiding hunts on national forest lands without the required permits. For more information about Operation Something Bruin and its continued success please visit: www.operationsomethingbruin.org.
The following defendants were sentenced on June 10, 2013, before U.S. Magistrate Judge Dennis L. Howell:
• Chad Burchfield, 34, of Robbinsville, N.C., pleaded guilty to one count of hunting feral swine at night. He was sentenced to 30 days in prison. In addition, Judge Howell revoked Burchfield’s right to hunt or fish for a period of two years, and ordered the defendant to pay a $10.00 assessment fee and a $25.00 administrative fee.
• Patrick Burchfield, 24, of Robbinsville, pleaded guilty to one count of hunting feral swine at night. He was sentenced to 30 days in prison and ordered to pay a $10.00 assessment fee and a $25.00 administrative fee. In addition, the defendant’s right to hunt or fish was revoked for a period of two years.
• Jessie Jenkins, 23, of Robbinsville, pleaded guilty to hunting feral swine at night. He was sentenced to 30 days in prison, was ordered to pay a $10.00 assessment fee and a $25.00 administrative fee and is prohibited from hunting or fishing for a period of two years.
• Kenneth Collins, 44, of Robbinsville, pleaded guilty to providing a hunting guide service on National Forest land without a permit. Judge Howell sentenced Collins to 30 days in prison. He was also ordered to pay a $10.00 special assessment fee, a $25.00 administrative fee and restitution of $450.00 to the U.S. Forest Service. Collins’ hunting and fishing rights were also revoked for a period of two years.
• Casey Collins, 26 of Robbinsville, pleaded guilty to two counts of providing a hunting guide service on National Forest land without a permit. He was sentenced to 15 days in prison and was ordered to pay a $10.00 special assessment fee and a $25.00 administrative fee. His hunting and fishing rights were revoked for a period of two years.
• Michael Sellers, 20, of Robbinsville, pleaded guilty to one count of proving a hunting service without a permit. He was sentenced to one year of probation and was ordered to surrender his hunting license.
• Ricky Owens, 48, of Robbinsville, pleaded guilty to one count of failure to obtain a special use permit needed to operate a commercial activity on National Forest land. He was sentenced to 15 days in prison and was ordered to pay a $10.00 special assessment fee and a $25.00 administrative fee.
• Robert Watson, 46, of Morganton, N.C., pleaded guilty to one count of aid and abet the illegal taking of a black bear. He was sentenced to 30 days in prison and was ordered to pay a $10.00 special assessment fee and a $25.00 administrative fee.
• Terry Ratliff, 55, of Opelica, Alabama, was ordered to pay a collateral of $1,500 for driving on a closed U.S. Forest Service Road.
• Brian Quacca, 41, of Groesbeck, Texas, pleaded guilty to one count of using the National Forest Service for commercial purposes without the required permit. On May 25, 2013, he was ordered to pay a fine in the amount of $1500.00. In addition, he was ordered to pay a $10.00 special assessment fee and a $25.00 administrative fee.
On June 10, 2013, Brent Fox, entered a plea of guilty to one count of illegal taking of a black bear and is awaiting sentencing. The defendants committed the offenses within the Nantahala National Forest with the exception of Robert Watson who committed his offense within Pisgah National Forest.
In making today’s announcement U.S. Attorney Tompkins stated, “We anticipate that the success of Operation Something Bruin will send a strong message to poachers and would-be violators to think twice before they engage in illegal hunting activities. Together with our federal and state law enforcement partners we will combine forces to combat illegal hunting, protect our wildlife and conserve our natural resources. I commend the efforts of all involved in this investigation and I thank our law enforcement partners for their continued dedication to this important mission.”
“The continued success of Operation Something Bruin is a fine example of state and federal agencies coordinating efforts to protect the resources of our national forests,” said Steve Ruppert, Special Agent in Charge for the Southern Region of the U.S. Forest Service. “The Forest Service appreciates the hard work of its law enforcement officers, the North Carolina Wildlife Resources Commission, the U.S. Fish and Wildlife Service and the U.S. Attorney’s Office in bringing these individuals to justice.”
“These penalties reflect the seriousness of the crimes committed against conservation, our wildlife resources and the hunting heritage,” said Col. Dale Caveny, Chief of the Division of Law Enforcement for the N.C. Wildlife Resources Commission. “Operation Something Bruin documented hundreds of wildlife violations and the successful conclusion of these federal cases will make would-be violators think twice before breaking the law. Our long-term goal is to deter illegal wildlife activities from taking place in the future and serve notice to everyone that wildlife officers are ever vigilant in the service of conservation and public safety.”
The investigation was conducted by the United States Forest Service, the North Carolina Wildlife Resources Commission, the U.S. Fish and Wildlife Service the Georgia Department of Natural Resources and the National Park Service. The prosecution was handled by Assistant U.S. Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville.
To report illegal hunting activities call the appropriate Law Enforcement contacts: The North Carolina State Wildlife Hotline at 1-800-662-7137, U.S. Fish and Wildlife Service, 1-828-258-2084 the National Forests at 1-828-231-0288 or The Great Smoky Mountains National Park at 1-865-436-1230.
Tax Preparer Pleads Guilty to Filing False Tax Returns on Behalf of His ClientsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigations (IRS-CI), announced that defendant Efrain Felipe, 41, of Hallandale Beach, pled guilty to a two-count Information, charging him with making and subscribing a false tax return on behalf of a client, and aiding and abetting, in violation of Title 26, United States Code, Sections 7206(1) and 7206(1).
Sentencing for defendant Felipe has been scheduled for August 29, 2013 at 8:30 a.m. before U.S. District Judge Robert N. Scola Jr. At sentencing, Felipe faces a possible maximum statutory sentence of up to 3 years in prison on each count.
Felipe operated a tax preparation business in Broward County, and prepared tax returns on behalf of his customers, falsely claiming that some customers were entitled to a First Time Home Buyers Credit (FTHBC) of $7,500 for properties they did not own or for properties that were purchased years earlier. Felipe also falsely claimed the FTHBC on his own personal tax return.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Norman O. Hemming, III.
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.
St. Paul Felon Pleads Guilty to Possessing A Nine-millimeter PistolRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a 24-year-old felon from St. Paul pleaded guilty to possessing a nine-millimeter, semi-automatic pistol. On June 12, 2013, Virgil Lee Kirkwood specifically pleaded guilty to one count of being a felon in possession of a firearm. Kirkwood, who was indicted on March 19, 2013, entered his plea before United States District Court Judge Paul A. Magnuson.
In his plea agreement, Kirkwood admitted that on December 6, 2012, he possessed the pistol. According to a law enforcement affidavit filed in the case, officers learned that Kirkwood was in possession of a gun and investigated in the area of 700 Central Avenue in St. Paul, Minnesota. When officers approached, they found Kirkwood, who was subsequently detained on an outstanding Anoka County warrant for an unrelated burglary. The pistol was found inside a black sock hidden near where Kirkwood was standing. Authorities later learned that the pistol was stolen from a Fridley-based licensed firearms dealer.
Because he is a felon, Kirkwood, also known as Virgil Lee Crenshaw, is prohibited under federal law from possessing firearms or ammunition at any time. His prior Hennepin County convictions include second-degree burglary (2010), third-degree attempted burglary (2012), and other offenses. Because certain of these convictions constitute crimes of violence, Kirkwood may be subject to sentencing under the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in prison for anyone subsequently convicted in federal court for being a felon in possession of a firearm or ammunition. The potential maximum penalty is life in prison. Judge Magnuson will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the St. Paul Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Allen A. Slaughter.