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25 July 2013
Man Indicted for Failing to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a man, who was most recently living in California, was indicted by a federal grand jury for failing to update his sex offender registration as required.
Robert Charles Black Cloud, age 59, was indicted on July 23, 2013, for Failure to Register as a Sex Offender. He appeared before U.S. Magistrate Judge Veronica L. Duffy on July 24, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is 10 years’ imprisonment and/or a $250,000 fine. The charge is merely an accusation and Black Cloud is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Special Assistant U.S. Attorney Laura A. Shattuck is prosecuting the case.
Black Cloud was remanded to the custody of the U.S. Marshal. A trial date has not been set.Laredoan Convicted in Meth and Marijuana ConspiracyRead the Press Release
LAREDO - Santos Eliseo Carpio Jr., 33, of Laredo, has entered a plea of guilty to conspiracy to possess with the intent to distribute methamphetamine and marijuana, United States Attorney Kenneth Magidson announced today.
In April 2012, Carpio arranged for truck drivers to transport methamphetamine and marijuana to Dallas and Chicago. Carpio first notified the drivers that he was “wrapping” the drugs, then drove to a local Laredo restaurant with another individual. There, he exited the car with a duffel bag and gave it to the drivers. Inside were two Ziploc bags with 1.824 kilograms of methamphetamine.
In May and June 2012, Carpio met with a pilot and attempted to arrange for 1200 to 1500 kilograms of marijuana to be flown from Mexico to the United States. On separate occasions, he requested wrapping material for marijuana which was provided to a co-conspirator at a gas station in Laredo.
Carpio will remain in custody pending his sentencing hearing to be set in the near future. At that time, he faces a mandatory minimum sentence of 10 years and up to life in prison and a possible $10 million fine.
The investigation leading to the charges was conducted by the Drug Enforcement Administration. Assistant United States Attorney Elizabeth Rabe is prosecuting the case.
Lafayette Resident Pleads Guilty to Part in Vehicle Insurance Fraud ScamRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that Oliver Lockett, 44, of Lafayette, pleaded guilty Wednesday before U.S. District Judge Richard T. Haik to staging vehicle accidents in order to defraud insurance companies.
According to evidence presented at the guilty plea, Lockett admitted to causing multiple vehicle accidents from 2003 until March 10, 2010. He also admitted to conspiring with others who would serve as guest passengers who knew ahead of time there would be a crash. Some of the co-conspirators traveled in separate cars behind Lockett and would pose as independent witnesses. As a result, the defendant made numerous claims to insurance companies for property damage and personal injury.
Lockett faces up to five years in prison, three years of supervised release, a $250,000 fine, and restitution for the wire fraud count. A sentencing date was not set.
The Louisiana State Police conducted the investigation. Assistant U.S. Attorney James T. McManus is prosecuting the case.
Irs Employee Charged with Laundering Drug ProceedsRead the Press Release
Memphis, TN – Maggie Cooper, 62, of Memphis, TN, a 27-year veteran Internal Revenue Service (IRS) Tax Analyst, was indicted today in a 38-count indictment charging her with money laundering and money laundering conspiracy, announced Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, and Christopher A. Henry, Special Agent in Charge of IRS-Criminal Investigation.
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The indictment alleges that beginning in or about 2011 and continuing through September 2012, Cooper conspired with others to conduct financial transactions with proceeds obtained from marijuana trafficking. Specifically, Cooper would make purchases in her name with money derived from her co-conspirators’ unlawful activity, with the understanding that the purchased items would be paid for and owned by the co-conspirator, including the purchase of a 2007 Jaguar XKR.
The indictment further alleges that Cooper allowed bank accounts to be opened in her name for her co-conspirator to facilitate marijuana purchases and sales. If convicted, she faces a term of up to 20 years in prison. She also faces fines of up to $500,000 and criminal forfeiture as alleged in the indictment.
This investigation was conducted by IRS-Criminal Investigation, U.S. Treasury Inspector General for Tax Administration (TIGTA), and the Memphis Police Department Organized Crime Unit. Assistant U.S. Attorney Deb Ireland represents the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Inmates Plead Guilty to Charges in Assault That Left Fellow Inmate HospitalizedRead the Press Release
ALEXANDRIA, La. –United States Attorney Stephanie A. Finley announced that Ernest Prado, 48, Pollock prisoner, and Gumaro Lopez, 33, Pollock prisoner, pleaded guilty Tuesday before U.S. District Judge Dee D. Drell to assaulting a fellow inmate.
According to evidence presented at the guilty plea, officials for the U.S. Penitentiary in Pollock on Nov. 29, 2010 observed defendants Prado and Lopez in the recreation yard assaulting an inmate using “homemade” ice pick type weapons. When the corrections officers approached to intervene, Prado and Lopez ceased the assault and threw the picks on the ground. The injured inmate was transported to a local hospital and was found to have sustained approximately 15 puncture wounds to his upper torso. The assault was captured on video.
Prado and Gumaro face up to 10 years in prison and three years of supervised release for assault with a dangerous weapon. Prado is serving time for possession with intent to distribute cocaine, and Lopez is serving time for possession with intent to distribute heroin. A sentencing date of Oct. 28, 2013 was set.
The FBI-Alexandria, La., Resident Agency, and the Federal Bureau of Prisons conducted the investigation. Assistant U.S. Attorney Earl M. Campbell is prosecuting the case.
Illinois Resident Pleads GuiltyTo Sending Threatening CommunicationsRead the Press Release
Rodney Termini, 47 of Ogelsby, Illinois, pleaded guilty today to sending threatening communications, 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 (FBI).
United States Attorney McQuade stated, “We treat all threats seriously, even hoaxes, because they divert law enforcement resources from other public safety needs. Anyone who communicates a threat to kill or injure others can expect serious criminal consequences.”
“Those who use popular Internet websites such as Facebook to post threatening communications will be investigated vigorously by the FBI”, stated Special Agent in Charge Foley. “We remain committed to the pursuit and prosecution of such individuals.”
According to court records on April 15, 2013, shortly after two bombs exploded near the finish line of the Boston Marathon in Boston, Massachusetts, killing three people and injuring more than 250 others, Termini posted two threatening messages to the Facebook page of Con-Way Freight, a shipping company that has locations in various states in the Midwest, including in Michigan and Illinois. Termini was a contract worker at Con-Way Freight’s LaSalle facility.
Termini’s first post read: “Hehehehehehahahahahah!!!!!!! Took Care Of The Boston Marathon And Now I Take Care Of Conway In Michigan And Lasalle.” Termini’s second post read: “ere (sic) bomb at one of your facilities, have fun finding it.” Termini posted these messages while at his home in Illinois, and the threats were received by Con-Way Freight employees in the Ann Arbor, Michigan office. Termini’s threats were made from a Facebook account he created in the name “Maggie Ladenn.”
As a result of the threatening messages, Con-Way Freight evacuated its facility in LaSalle, Illinois and had bomb sniffing dogs used in an attempt to detect any explosive devices. No actual explosive devices were recovered. Con-Way also diverted several trucks for a period of time, as they attempted to secure their various facilities. As a result of the bomb threats, Con-Way Freight suffered a loss of approximately $46,000.
Termini will be sentenced on November 21, 2013 at 2 pm by United States District Judge Gershwin Drain. Under the terms of his plea agreement, Termini faces 12 to 18 months in federal prison.
The case was investigated by special agents of the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Kevin Mulcahy.
Illegal Alien, Miguel Mendoza-vega, Pleads Guilty to Misuse of A Permanent Resident Card and Illegal Use of A Social Security NumberRead the Press Release
MIGUEL MENDOZA-VEGA, age 40, of a citizen of Mexico, pled guilty in federal court yesterday before U.S. District Judge Ivan L.R. Lemelle to Fraud and Misuse of a Permanent Resident Card and Illegal Use of a Social Security Number, announced U.S. Attorney Dana J. Boente.
According to the factual basis, on or about December 7, 2012, MENDOZA-VEGA used a counterfeit Permanent Resident Card and falsely represented that another person’s Social Security number had been assigned to him. MENDOZA-VEGA is illegally present in the United States.
MENDOZA-VEGA faces maximum term of imprisonment of ten years for the Fraud and Misuse of a Permanent Resident Card conviction and five years for the Illegal Use of a Social Security Number conviction. Each conviction also carries up to three years supervised release following imprisonment and a fine of up to $250,000. Sentencing is scheduled for October 16, 2013.
This case was investigated by United States Immigration and Customs Enforcement, Homeland Security Investigations. The prosecution is being handled by Assistant United States Attorney Chandra Menon.
(Download Factual Basis )
Health Care Clinic Director Sentenced<br /> for Role in $63 Million Health Care Fraud SchemeRead the Press Release
A former health care clinic director and licensed clinical psychologist at defunct health provider Health Care Solutions Network Inc. (HCSN) was sentenced today in Miami to serve 135 months in prison for her central role in a fraud scheme that resulted in more than $63 million in fraudulent claims to Medicare and Florida Medicaid.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the Miami office of the U.S. Department of Health and Human Services’s Office of Inspector General (HHS-OIG) made the announcement.
Alina Feas, 53, of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida. In addition to her prison term, Feas was sentenced to three years of supervised release and ordered to pay $24.1 million in restitution.
On May 7, 2013, Feas pleaded guilty to one count of conspiracy to commit health care fraud and one substantive health care fraud count. During the course of the conspiracy, Feas was employed as a therapist and clinical director of HCSN’s Partial Hospitalization Program (PHP). A PHP is a form of intensive treatment for severe mental illness.
HCSN of Florida (HCSN-FL) operated community mental health centers at two locations. In her capacity as clinical director, Feas oversaw the entire clinical program and supervised therapists and other HCSN-FL personnel. She also conducted group therapy sessions when therapists were absent, and she was aware that HCSN-FL paid illegal kickbacks to owners and operators of Miami-Dade County Assisted Living Facilities (ALF) in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid. Feas also knew that many of the ALF referral patients were ineligible for PHP services because many patients suffered from mental retardation, dementia and Alzheimer's disease.Feas submitted claims to Medicare for individual therapy she purportedly provided to HCSN-FL patients using her personal Medicare provider number, knowing that HCSN-FL was simultaneously billing the same patients for PHP services. She continued to bill Medicare under her personal provider number while an HCSN community health center in North Carolina (HCSN-NC) simultaneously submitted false and fraudulent PHP claims.
Feas was also aware that HCSN-FL personnel were fabricating patient medical records. Many of these medical records were created weeks or months after the patients were admitted to HCSN-FL for purported PHP treatment and were used to support false and fraudulent billing to government-sponsored health care benefit programs, including Medicare and Florida Medicaid. During her employment at HCSN-FL, Feas signed fabricated PHP therapy notes and other medical records used to support false claims to government-sponsored health care programs.
At HCSN-NC, Feas was aware that her co-conspirators were fabricating medical records to support the fraudulent claims she was causing to be submitted to Medicare on behalf of HCSN-NC. She knew that a majority of the fabricated notes were created at the HCSN-FL facility for patients admitted into the PHP at HCSN-NC. In some instances, Feas signed therapy notes and other medical records even though she never provided services in HCSN-NC’s PHP.
From 2004 through 2011, HCSN billed Medicare and the Medicaid program more than $63 million for purported mental health services.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. This case was prosecuted by Trial Attorneys Allan J. Medina, former Special Trial Attorney William Parente and Deputy Chief Benjamin D. Singer of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Halliburton Agrees to Plead Guilty to Destruction of Evidence in Connection with Deepwater Horizon TragedyRead the Press Release
Halliburton Energy Services Inc. has agreed to plead guilty to destroying evidence in connection with the Deepwater Horizon disaster, the Department of Justice announced today. A criminal information charging Halliburton with one count of destruction of evidence was filed today in U.S. District Court in the Eastern District of Louisiana.
Halliburton has signed a cooperation and guilty plea agreement with the government in which Halliburton has agreed to plead guilty and admit its criminal conduct. As part of the plea agreement, Halliburton has further agreed, subject to the court’s approval, to pay the maximum-available statutory fine, to be subject to three years of probation and to continue its cooperation in the government’s ongoing criminal investigation. Separately, Halliburton made a voluntary contribution of $55 million to the National Fish and Wildlife Foundation that was not conditioned on the court’s acceptance of its plea agreement.
According to court documents, on April 20, 2010, while stationed at the Macondo well site in the Gulf of Mexico, the Deepwater Horizon rig experienced an uncontrolled blowout and related explosions and fire, which resulted in the deaths of 11 rig workers and the largest oil spill in U.S. history. Following the blowout, Halliburton conducted its own review of various technical aspects of the well’s design and construction. On or about May 3, 2010, Halliburton established an internal working group to examine the Macondo well blowout, including whether the number of centralizers used on the final production casing could have contributed to the blowout. A production casing is a long, heavy metal pipe set across the area of the oil and natural gas reservoir. Centralizers are protruding metal collars affixed at various intervals on the outside of the casing. Use of centralizers can help keep the casing centered in the wellbore away from the surrounding walls as it is lowered and placed in the well. Centralization can be significant to the quality of subsequent cementing around the bottom of the casing. Prior to the blowout, Halliburton had recommended to BP the use of 21 centralizers in the Macondo well. BP opted to use six centralizers instead.
As detailed in the information, in connection with its own internal post-incident examination of the well, in or about May 2010, Halliburton, through its Cementing Technology Director, directed a Senior Program Manager for the Cement Product Line (Program Manager) to run two computer simulations of the Macondo well final cementing job using Halliburton’s Displace 3D simulation program to compare the impact of using six versus 21 centralizers. Displace 3D was a next-generation simulation program that was being developed to model fluid interfaces and their movement through the wellbore and annulus of a well. These simulations indicated that there was little difference between using six and 21 centralizers. Program Manager was directed to, and did, destroy these results.
In or about June 2010, similar evidence was also destroyed in a later incident. Halliburton’s Cementing Technology Director asked another, more experienced, employee (“Employee 1”) to run simulations again comparing six versus 21 centralizers. Employee 1 reached the same conclusion and, like Program Manager before him, was then directed to “get rid of” the simulations.
Efforts to forensically recover the original destroyed Displace 3D computer simulations during ensuing civil litigation and federal criminal investigation by the Deepwater Horizon Task Force were unsuccessful.
In agreeing to plead guilty, Halliburton has accepted criminal responsibility for destroying the aforementioned evidence.
The guilty plea agreement and criminal charge announced today are part of the ongoing criminal investigation by the Deepwater Horizon Task Force into matters related to the April 2010 Gulf oil spill. The Deepwater Horizon Task Force, based in New Orleans, is supervised by Acting Assistant Attorney General Mythili Raman and led by John D. Buretta, who serves as the director of the task force. The task force includes prosecutors from the Criminal Division and the Environment and Natural Resources Division of the Department of Justice; the U.S. Attorney’s Office for the Eastern District of Louisiana and other U.S. Attorney’s Offices; and investigating agents from: the FBI; Department of the Interior, Office of Inspector General; Environmental Protection Agency, Criminal Investigation Division; Environmental Protection Agency, Office of Inspector General; National Oceanic and Atmospheric Administration, Office of Law Enforcement; U.S. Coast Guard; U.S. Fish and Wildlife Service; and the Louisiana Department of Environmental Quality.
The case is being prosecuted by Deepwater Horizon Task Force Director John D. Buretta, Deputy Directors Derek A. Cohen and Avi Gesser, and task force prosecutors Richard R. Pickens II, Scott M. Cullen, Colin Black and Rohan Virginkar.
An information is merely a charge and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.Guilty Plea in Simple Assault CaseRead the Press Release
United States Attorney Brendan V. Johnson announced that Ta-Sunka-Hinz Thunder Hawk, age 18, of Blackfoot, South Dakota, appeared before U.S. District Judge Roberto A. Lange on July 23, 2013, and pled guilty to a Superseding Information that charged him with Simple Assault.
The maximum penalty upon conviction is 6 months of imprisonment and a $5,000 fine, or both. Restitution and a $10 special assessment to the Federal Crime Victims Fund may also be ordered.
The conviction stems from an incident in March of 2013 when Thunder Hawk went into a room at the Tiospaye Topa High School and grabbed the victim in a bear hug. The victim, who was working at the school, was forced to struggle in order to get free.
The investigation was conducted by the Cheyenne River Tribal Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Thunder Hawk was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for October 14, 2013.Four Charged with Illegal ReentryRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigrations and Customs Enforcement, announced that four individuals were charged with being in the United States illegally, in separate cases.
According to United States Attorney Peter J. Smith, a grand jury in Harrisburg return indictments Wednesday against: Rosbel Velasquez-Perez, a/k/a Crumzel Valazquez-Perez age 25; Pedro Mulato-Rosas, age 32; Rodrigo Gomez-Roman, a/k/a Juan Diaz-Garcia, age 46; and Eliberto Tapia, age 37. All four are natives and citizens of Mexico.
Tapia and Velasquez-Perez were apprehended in Dauphin County. Mulato-Rosas and Gomez-Roman were apprehended in York County.
The investigations were conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement and are being prosecuted by Special Assistant United States Attorney Brian McDonnell.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In these particular cases, the maximum penalty under the federal statute is 10 years’imprisonment, a term of supervised release, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Former Navy Member Sentenced for Conspiracy to Submit False Claims to the United StatesRead the Press Release
Gulfport, Miss. – Fred James Wheat Porterfield, 24, of Gulfport, Mississippi, was sentenced in federal court today to 39 months in prison followed by two years of supervised release for conspiracy to submit false claims to the United States, U.S. Attorney Gregory K. Davis and Naval Criminal Investigative Service (NCIS) Supervisory Special Agent in Charge Brian Swords announced. Porterfield was also ordered to pay restitution in the amount of $139,671.29 to the U.S. Navy and he must complete 130 hours of community service during his term of supervised release.
On April 12, 2013, Porterfield pled guilty to conspiring with codefendant, Juan Saldivar, to submit false claims to the United States Department of Defense by falsifying various travel documents while they served in the Navy at the Naval Mobile Construction Battalion 74 in Gulfport, Mississippi. Saldivar pled guilty to the charge on July 17, 2013 and will be sentenced on October 22, 2013.
This case was investigated by the NCIS and prosecuted by Assistant U.S. Attorney Ruth Morgan.
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Former Navy Member Pleads Guilty to Conspiracy to Submit False Claims to the United StatesRead the Press Release
Gulfport, Miss. – Brian Scott Carlton, 43, of Vancleave, Mississippi, pled guilty in U.S. District Court today to conspiracy to submit false claims to the United States, U.S. Attorney Gregory K. Davis and Naval Criminal Investigative Service (NCIS) Supervisory Special Agent in Charge Brian Swords announced.
Carlton admitted conspiring with others to submit false claims to the United States Department of Defense by falsifying various travel documents while serving in the Navy at the Naval Mobile Construction Battalion 74 in Gulfport, Mississippi. He will be sentenced by U.S. District Judge Sul Ozerden on October 31, 2013 at 9:00 a.m. and faces a maximum penalty of ten years imprisonment and a $250,000 fine.
This case was investigated by the NCIS and prosecuted by Assistant U.S. Attorney Ruth Morgan.
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Former Middle School Teacher Is Sentenced to 84 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
Defendant Was a Choir Teacher at Cross Timbers Middle School in Grapevine, Texas
DALLAS — Daniel Oberlender, 46, a former choir teacher at Cross Timbers Middle School in Grapevine, Texas, was sentenced today, by U.S. District Judge Reed C. O’Connor, to 84 months in federal prison, after pleading guilty in December 2012 to a criminal Information charging one count of distribution of child pornography. He has been in custody since December 20, 2012, when he was arrested on a federal criminal complaint that was filed after law enforcement executed a search warrant at his residence in Grapevine on December 18, 2012. 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, Oberlender used his Apple Macbook computer to connect to the Internet and use Skype software to share a video file depicting a minor engaged in sexually explicit conduct.
Specifically, according to the factual resume filed in the case, on August 5, 2012, Oberlender used Skype to communicate with a person known as “DJH.” During that communication, Oberlender permitted DJH to remotely view the entire contents of his computer screen. Oberlender then began playing a video file, viewable by DJH, that depicted an adult male and a minor male engaged in sexually explicit conduct. The minor male, whose eyes are shut during the entire video, appears to be approximately five or six-years-old. DJH, who was located in Dallas, used Evaer software to capture and record the contents of Oberlender’s computer screen, to include the transmission of the video.
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 investigation was conducted by the FBI. Assistant U.S. Attorney Aisha Saleem was in charge of the prosecution.
Former Gymnastics Coach Sentenced to Twenty Years in Prison for Attempted Receipt of Child PornographyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced the sentencing of defendant Raymond Adams, 42, of Boca Raton, in connection with his conviction for attempted receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2). After finding that Adams had a twenty year history of sexually molesting his gymnastics students, the Honorable Donald M. Middlebrooks sentenced Adams to 20 years, the maximum statutory term of imprisonment, to be followed by lifetime supervised release. In addition, Adams will have to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Project Safe Childhood was launched in May 2006 by the Department of Justice and is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of the FBI. The case was prosecuted by Assistant U.S. Attorney Brandy Galler.
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.
Flossmoor, Ill., Man Indicted for Obstruction of Justice<br /> and Filing False Liens Against Two Federal Judges and<br /> Other Government EmployeesRead the Press Release
The Justice Department announced today that Tyree Davis Sr. of Flossmoor, Ill., was arrested on an eight-count indictment charging him with obstruction of justice and filing fraudulent multi-billion dollar liens against government employees. The indictment was returned on July 24, 2013, by a federal grand jury in Chicago.
According to the indictment, Davis obstructed justice by sending correspondence threatening to arrest two federal judges: the chief judge of the Northern District of Illinois and the judge who presided over the 2010 tax trial of LaShawn Littrice, whom Davis refers to as his wife. Littrice was convicted by a jury in June 2010 and sentenced to 42 months in prison in December 2010. Davis also filed false liens, titled Notice of Maritime Liens, against both judges and notified others that he had filed the liens. In addition to the two judges, Davis filed false liens against the U.S. Attorney and Clerk of Court for the Northern District of Illinois, an Assistant U.S. Attorney and an Internal Revenue Service-Criminal Investigation Special Agent. All the liens were publicly filed with the Cook County Recorder’s Office and claimed that each individual owed $100 billion. The liens were re-recorded two and three times in order to add property descriptions to them.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Davis faces a maximum of 80 years in prison and a maximum fine of $2 million dollars.
The case is being investigated by the U.S. Treasury Inspector General for Tax Administration (TIGTA) and the FBI, and is being prosecuted by Tax Division Senior Litigation Counsel Jen E. Ihlo and Trial Attorney Matthew J. Kluge.
Five Indicted in New Jersey for Largest Known<br /> Data Breach ConspiracyRead the Press Release
A federal indictment made public today in New Jersey charges five men with conspiring in a worldwide hacking and data breach scheme that targeted major corporate networks, stole more than 160 million credit card numbers and resulted in hundreds of millions of dollars in losses. It is the largest such scheme ever prosecuted in the United States.
The charges were announced today by U.S. Attorney Paul J. Fishman of the District of New Jersey; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; and Special Agent in Charge James Mottola of the U.S. Secret Service (USSS), Criminal Investigations, Newark, N.J., Division. The USSS led the investigation of the indicted conspiracy.
The defendants allegedly sought corporate victims engaged in financial transactions, retailers that received and transmitted financial data and other institutions with information they could exploit for profit. The defendants are charged with attacks on NASDAQ, 7-Eleven, Carrefour, JCP, Hannaford, Heartland, Wet Seal, Commidea, Dexia, JetBlue, Dow Jones, Euronet, Visa Jordan, Global Payment, Diners Singapore and Ingenicard. It is not alleged that the NASDAQ hack affected its trading platform.
According to the second superseding indictment unsealed today in Newark federal court and other court filings, the five men each served particular roles in the scheme. Vladimir Drinkman, 32, of Syktyykar and Moscow, Russia, and Alexandr Kalinin, 26, of St. Petersburg, Russia, each allegedly specialized in penetrating network security and gaining access to the corporate victims’ systems. Roman Kotov, 32, of Moscow, allegedly specialized in mining the networks Drinkman and Kalinin compromised to steal valuable data. Court documents allege that the defendants hid their activities using anonymous web-hosting services provided by Mikhail Rytikov, 26, of Odessa, Ukraine. Dmitriy Smilianets, 29, of Moscow, allegedly sold the information stolen by the other conspirators and distributed the proceeds of the scheme to the participants.
“This type of crime is the cutting edge,” said U.S. Attorney Fishman. “Those who have the expertise and the inclination to break into our computer networks threaten our economic well-being, our privacy, and our national security. And this case shows, there is a real practical cost because these types of frauds increase the costs of doing business for every American consumer, every day. We cannot be too vigilant and we cannot be too careful.”
“The defendants charged today were allegedly responsible for spearheading a worldwide hacking conspiracy that victimized a wide array of consumers and entities, causing hundreds of millions of dollars in losses,” said Acting Assistant Attorney General Raman. “Despite substantial efforts by the defendants to conceal their alleged crimes, the Department and its law enforcement counterparts have cracked this extensive scheme and are seeking justice for its many victims. Today’s indictment will no doubt serve as a serious warning to those who would utilize illegal and fraudulent means to steal sensitive information online.”
“As is evident by this indictment, the Secret Service will continue to apply innovative techniques to successfully investigate and arrest transnational cyber criminals,” said USSS Special Agent in Charge Mottola. “While the global nature of cybercrime continues to have a profound impact on our financial institutions, this case demonstrates the global investigative steps that U.S. Secret Service Special Agents are taking to ensure that criminals will be pursued and prosecuted no matter where they reside.”
Kalinin and Drinkman were previously charged in New Jersey as “Hacker 1” and “Hacker 2” in a 2009 indictment charging Albert Gonzalez, 32, of Miami, in connection with five corporate data breaches – including the breach of Heartland Payment Systems Inc., which at the time was the largest breach ever reported. Gonzalez is currently serving 20 years in federal prison for those offenses. The U.S. Attorney’s Office for the Southern District of New York today announced two additional indictments against Kalinin: one charges him in connection with hacking certain computer servers used by NASDAQ and a second indictment, unsealed today, charged Kalinin and another alleged Russian hacker, Nikolay Nasenkov, with an international scheme to steal bank account information by hacking U.S.-based financial institutions. Rytikov was previously charged in the Eastern District of Virginia with an unrelated scheme. Kotov and Smilianets have not previously been charged publicly in the United States.
Drinkman and Smilianets were arrested at the request of the United States while traveling in the Netherlands on June 28, 2012. Smilianets was extradited on Sept. 7, 2012, and remains in federal custody. He will appear in New Jersey federal court to be arraigned on the superseding indictment on a date to be determined. Kalinin, Kotov and Rytikov remain at large. All of the defendants are Russian nationals except for Rytikov, who is a citizen of Ukraine.
The Attacks
According to court documents, the five defendants allegedly conspired with others to penetrate the computer networks of several of the largest payment processing companies, retailers and financial institutions in the world, stealing the personal identifying information of individuals. They allegedly took user names and passwords, means of identification, credit and debit card numbers and other corresponding personal identification information of cardholders. The conspirators are alleged to have unlawfully acquired more than 160 million card numbers through hacking.
Court documents allege that the initial entry was often gained using a “SQL injection attack.” SQL, or Structured Query Language, is a type of programing language designed to manage data held in particular types of databases; the hackers identified vulnerabilities in SQL databases and used those vulnerabilities to infiltrate a computer network. Once the network was infiltrated, the defendants allegedly placed malicious code, or malware, on the system. This malware created a “back door,” leaving the system vulnerable and helping the defendants maintain access to the network. In some cases, the defendants lost access to the system due to companies’ security efforts, but they were able to regain access through persistent attacks.
Communications obtained by law enforcement reveal the defendants often targeted the victim companies for many months, waiting patiently as their efforts to bypass security were underway. The defendants allegedly had malware implanted in multiple companies’ servers for more than a year.
The defendants are alleged to have used their access to the networks to install “sniffers,” which were programs designed to identify, collect and steal data from the victims’ computer networks. The defendants then allegedly used an array of computers located around the world to store the stolen data and ultimately sell it to others.
Selling the Data
After acquiring the card numbers and associated data – which they referred to as “dumps” – the conspirators allegedly sold it to resellers around the world. The buyers then allegedly sold the dumps through online forums or directly to individuals and organizations. Smilianets was allegedly in charge of sales, vending the data only to trusted identity theft wholesalers. According to court documents, he charged approximately $10 for each stolen American credit card number and associated data, approximately $50 for each European credit card number and associated data and approximately $15 for each Canadian credit card number and associated data – offering discounted pricing to bulk and repeat customers. Ultimately, the end users encoded each dump onto the magnetic strip of a blank plastic card and cashed out the value of the dump by either withdrawing money from ATMs or making purchases with the cards.
Covering Their Tracks
The defendants used a number of methods to conceal the scheme. Unlike traditional Internet service providers, Rytikov allegedly allowed his clients to hack with the knowledge he would never keep records of their online activities or share information with law enforcement.
Over the course of the conspiracy, the defendants allegedly communicated through private and encrypted communications channels to avoid detection. Fearing law enforcement would intercept even those communications, some of the conspirators allegedly attempted to meet in person.
To protect against detection by the victim companies, the defendants allegedly altered the settings on victim company networks to disable security mechanisms from logging their actions. The defendants also worked to evade existing protections by security software.* * *
Court documents allege that as a result of the scheme, financial institutions, credit card companies and consumers suffered hundreds of millions in losses, including more than $300 million in losses reported by just three of the corporate victims and immeasurable losses to the identity theft victims in costs associated with stolen identities and false charges.
If convicted, the maximum penalties for the charged counts are: five years in prison for conspiracy to gain unauthorized access to computers; 30 years in prison for conspiracy to commit wire fraud; five years in prison for unauthorized access to computers; and 30 years in prison for wire fraud.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
The case was investigated by the USSS Criminal Investigations Division and the USSS Newark Division. Significant assistance was provided by the Justice Department’s Office of International Affairs and the public prosecutors with the Dutch Ministry of Security and Justice and the National High Tech Crime Unit of the Dutch National Police.
The government is represented by Erez Liebermann, Deputy Chief of the New Jersey U.S. Attorney’s Office Criminal Division, Assistant U.S. Attorney Gurbir Grewal of the Computer Hacking and Intellectual Property Section of the office’s Economic Crimes Unit and Trial Attorney James Silver of the Criminal Division’s Computer Crime and Intellectual Property Section. The U.S. Attorney’s Offices in the District of Kansas and the Northern District of Georgia provided valuable contributions in the development of the prosecution.Related Materials:
Indictment
Five Indicted in New Jersey for Largest Known Data Breach ConspiracyRead the Press Release
Hackers Targeted Major Payment Processors, Retailers and Financial Institutions Around the World
NEWARK, N.J. – A federal indictment made public today in New Jersey charges five men with conspiring in a worldwide hacking and data breach scheme that targeted major corporate networks, stole more than 160 million credit card numbers, resulted in hundreds of millions of dollars in losses and is the largest such scheme ever prosecuted in the United States.
New Jersey U.S. Attorney Paul J. Fishman announced the charges today along withSpecial Agent in Charge James Mottola of the U.S. Secret Service (USSS), Criminal Investigations, Newark Division and Acting Assistant Attorney General for the Department of Justice’s Criminal Division Mythili Raman. The USSS led the investigation of the indicted conspiracy.
The defendants allegedly sought corporate victims engaged in financial transactions, retailers that received and transmitted financial data and other institutions with information they could exploit for profit. The defendants are charged with attacks on NASDAQ, 7-Eleven, Carrefour, JCP, Hannaford, Heartland, Wet Seal, Commidea, Dexia, JetBlue, Dow Jones, Euronet, Visa Jordan, Global Payment, Diners Singapore and Ingenicard. It is not alleged that the NASDAQ hack affected its trading platform.
“This type of crime is the cutting edge,” U.S. Attorney Fishman said. “Those who have the expertise and the inclination to break into our computer networks threaten our economic well-being, our privacy, and our national security. And this case shows there is a real practical cost because these types of frauds increase the costs of doing business for every American consumer, every day. We cannot be too vigilant and we cannot be too careful.”
“The defendants charged today were allegedly responsible for spearheading a world-wide hacking conspiracy that victimized a wide array of consumers and entities, causing hundreds of millions of dollars in losses,” Acting Assistant Attorney General Raman said. “Despite substantial efforts by the defendants to conceal their alleged crimes, the Department and its law enforcement counterparts have cracked this extensive scheme and are seeking justice for its many victims. Today’s indictment will no doubt serve as a serious warning to those who would utilize illegal and fraudulent means to steal sensitive information online.”
“As is evident by this indictment, the Secret Service will continue to apply innovative techniques to successfully investigate and arrest transnational cyber criminals,” said Special Agent in Charge Mottola of the Newark Field Office. “While the global nature of cyber-crime continues to have a profound impact on our financial institutions, this case demonstrates the global investigative steps that U.S. Secret Service Special Agents are taking to ensure that criminals will be pursued and prosecuted no matter where they reside.”
According to the second superseding indictment unsealed today in Newark federal court and other court filings:
The five men each served particular roles in the scheme. Vladimir Drinkman, 32, of Syktyykar and Moscow, Russia, and Alexandr Kalinin, 26, of St. Petersburg, Russia, each specialized in penetrating network security and gaining access to the corporate victims’ systems. Roman Kotov, 32, of Moscow, also a hacker, specialized in mining the networks Drinkman and Kalinin compromised to steal valuable data. The hackers hid their activities using anonymous web-hosting services provided by Mikhail Rytikov, 26, of Odessa, Ukraine. Dmitriy Smilianets, 29, of Moscow, sold the information stolen by the other conspirators and distributed the proceeds of the scheme to the participants.
Kalinin and Drinkman were previously charged in New Jersey as “Hacker 1” and “Hacker 2” in a 2009 indictment charging Albert Gonzalez, 32, of Miami, in connection with five corporate data breaches – including the breach of Heartland Payment Systems Inc., which at the time was the largest ever reported. Gonzalez is currently serving 20 years in federal prison for those offenses. The U.S. Attorney’s Office for the Southern District of New York today announced two additional indictments against Kalinin: one charges him in connection with hacking certain computer servers used by NASDAQ and a second indictment, unsealed today, charged Kalinin and another Russian hacker, Nikolay Nasenkov, with an international scheme to steal bank account information by hacking U.S.-based financial institutions. Rytikov was previously charged in the Eastern District of Virginia with an unrelated scheme. Kotov and Smilianets have not previously been charged publicly in the United States.
Drinkman and Smilianets were arrested at the request of the United States while traveling in the Netherlands on June 28, 2012. Smilianets was extradited Sept. 7, 2012, and remains in federal custody. He will appear in District of New Jersey federal court to be arraigned on the superseding indictment on a date to be determined. Drinkman is in custody in the Netherlands pending an extradition hearing. Kalinin, Kotov and Rytikov remain at large. All of the defendants are Russian nationals except for Rytikov, who is a citizen of Ukraine.
The Attacks
The five defendants conspired with others to penetrate the computer networks of several of the largest payment processing companies, retailers and financial institutions in the world, stealing the personal identifying information of individuals. They took user names and passwords, means of identification, credit and debit card numbers and other corresponding personal identification information of cardholders. Conservatively, the conspirators unlawfully acquired more than 160 millioncard numbers through hacking.The initial entry was often gained using a “SQL injection attack.” SQL, or Structured Query Language, is a type of programing language designed to manage data held in particular types of databases; the hackers identified vulnerabilities in SQL databases and used those vulnerabilities to infiltrate a computer network. Once the network was infiltrated, the defendants placed malicious code, or malware, on the system. This malware created a “back door,” leaving the system vulnerable and helping the defendants maintain access to the network. In some cases, the defendants lost access to the system due to companies’ security efforts, but were able to regain access through persistent attacks.
Instant message chats obtained by law enforcement reveal the defendants often targeted the victim companies for many months, waiting patiently as their efforts to bypass security were underway. The defendants had malware implanted in multiple companies’ servers for more than a year.The defendants used their access to the networks to install “sniffers,” which were programs designed to identify, collect and steal data from the victims’ computer networks. The defendants then used an array of computers located around the world to store the stolen data and ultimately sell it to others.
Selling the Data
After acquiring the card numbers and associated data – which they referred to as “dumps” – the conspirators sold it to resellers around the world. The buyers then sold the dumps through online forums or directly to individuals and organizations. Smilianets was in charge of sales, vending the data only to trusted identity theft wholesalers. He would charge approximately $10 for each stolen American credit card number and associated data, approximately $50 for each European credit card number and associated data and approximately $15 for each Canadian credit card number and associated data – offering discounted pricing to bulk and repeat customers. Ultimately, the end users encoded each dump onto the magnetic strip of a blank plastic card and cashed out the value of the dump by either withdrawing money from ATMs or making purchases with the cards.
Covering Their Tracks
The defendants used a number of methods to conceal the scheme. Unlike traditional Internet service providers, Rytikov allowed his clients to hack with the knowledge he would never keep records of their online activities or share information with law enforcement.
Over the course of the conspiracy, the defendants communicated through private and encrypted communications channels to avoid detection. Fearing law enforcement would intercept even those communications, some of the conspirators attempted to meet in person.
To protect against detection by the victim companies, the defendants altered the settings on victim company networks to disable security mechanisms from logging their actions. The defendants also worked to evade existing protections by security software.
As a result of the scheme, financial institutions, credit card companies and consumers suffered hundreds of millions in losses – including more than $300 million in losses reported by just three of the corporate victims – and immeasurable losses to the identity theft victims in costs associated with stolen identities and false charges.
The maximum potential penalties for each defendant per count are as follows:
Count(s)Defendants
Violation
Maximum Penalty/Count
All
Conspiracy to gain unauthorized access to computers
5 years; $250,000 fine or twice the gain or loss from the offense
2
All
Conspiracy to commit wire fraud
30 years; $1 million fine or twice the gain or loss from the offense
3-8
Drinkman
Kalinin
Kotov
SmilianetsUnauthorized access to computers
5 years; $250,000 fine or twice the gain or loss from the offense
9-11
Drinkman
Kalinin
Kotov
SmilianetsWire fraud
30 years; $1 million fine or twice the gain or loss from the offense
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, Criminal Investigations, under the direction of Director Pierson, and special agents from the Newark Division, under the direction of Special Agent in Charge James Mottola, for the ongoing investigation leading to today’s charges.
The government is represented by Erez Liebermann, Deputy Chief of the New Jersey U.S. Attorney’s Office Criminal Division; Assistant U.S. Attorney Gurbir Grewal of the Computer Hacking and Intellectual Property Section of the Office’s Economic Crimes Unit; and Trial Attorney James Silver of the Department of Justice’s Computer Crime and Intellectual Property Section in Washington.
U.S. Attorney Fishman thanked the Department’s Office of International Affairs in Washington for their extraordinary support, as well as public prosecutors with the Dutch Ministry of Security and Justice and the National High Tech Crime Unit of the Dutch National Police. Fishman also acknowledged the U.S. Attorney’s Offices in the District of Kansas and the Northern District of Georgia for their valuable contributions in the development of the prosecution.
The charges and allegations contained in the indictment are merely accusations and the defendants are considered innocent unless and until proven guilty.
13-310
Defense counsel:
Vladimir Drinkman: Bart Stapert Esq., Amsterdam, Netherlands (for Netherlands-based proceedings)
Dmitriy Smilianets: Bruce Provda Esq., Queens, N.Y.Drinkman, Vladimir et al., Indictment
Federal Grand Jury in Fort Wayne Returns IndictmentsRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
FortWayne,Ind. TheUnitedStatesAttorney'sOfficeannouncedthataGrand JurysittinginFort Wayne,Indiana,returnedthefollowingIndictmentsonJuly24,2013:
Keana M.Davis,33,andAmandaMcBride,30,bothofFortWayne,Indianaarechargedina6 countIndictment(respectively)withconspiringtodistributeanddistributionandpossessionwithintentto distributecocaineandcocainebase,commonlyknownas“crack”fromonoraboutApril15,2013and continuingtoonoraboutJune27,2013,anddistributionofcocainebase,commonlyknownas“crack”or aboutApril15,2013.Davisisalsochargedwithdistributionofcocainebase,commonlyknownas “crack”onoraboutApril24,2013,May3, 2013,andMay28,2013.McBridewasalsochargedwith profitingfrommaintainingadruginvolvedpremisesfromonoraboutApril15,2013,toonoraboutJune 27,2013.Thesechargeswerefiledasaresultofaninvestigationby theFederalBureauofInvestigation SafeStreetsTaskForceandtheFortWaynePoliceDepartment.ThisIndictmentalsoseekstheforfeiture ofanypropertyderivedthecommissionofsuchcharges.Thiscasehasbeenassignedtoandwillbe prosecutedbyAssistantUnitedStatesAttorneyAnthonyW.Geller.
RickeyD.James,Sr.,55,ofFortWayne,Indiana,ischargedinatwocountIndictmentwithbeing afeloninpossessionofafirearmandammunitiononoraboutMay29,2013andpossessinganunregistered firearmonoraboutMay29,2013.ThischargehasbeenfiledasaresultofaninvestigationbytheBureau ofAlcohol,Tobacco,FirearmsandExplosivesandtheFortWaynePoliceDepartmentBombSquad.This casehasbeenassignedtoandwillbeprosecutedby AssistantUnitedStatesAttorneyTinaL.Nommay.
WilliamSallee,20,ofOssian,Indiana,BrandonBetz,21,ofBluffton,Indiana,KameronKutzli, 22,ofDunkirk,IndianaandTysonAllen,26,ofBluffton,Indianaareeachchargedinasinglecount IndictmentwithretaliatingagainstawitnessonoraboutJune5,2013.Thischargewasfiledasaresultof aninvestigationbytheBureauofAlcohol,Tobacco,FirearmsandExplosives,UnitedStatesMarshals Service,andtheWellsCountySheriff’sDepartment.Thiscasehasbeenassignedtoandwillbe prosecutedbyAssistantUnitedStatesAttorneyAnthonyW.Geller.
TheUnitedStatesAttorney'sOfficeemphasizedthatanIndictmentismerelyanallegationand thatallpersonschargedarepresumedinnocentuntilandunlessprovenguiltyincourt.
Ifconvictedincourt,anyspecific sentencetobeimposedwillbedeterminedbythejudgeaftera considerationoffederalsentencingstatutesandtheFederalSentencingGuidelines.
East St. Louis Man Pleads Guilty to Firearm and Controlled Substance OffenseRead the Press Release
On July 24, 2013, Antoine T. Thomas, a thirty-seven year old East St. Louis, Illinois, man pled guilty in federal district court, in East St. Louis, to unlawful possession of a firearm by an unlawful user of a controlled substance, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Thomas is scheduled for sentencing on October 25, 2013, at which at which time he faces a maximum potential sentence of 10 years’ in prison and a fine of up to $250,000, not more than 3 years’ of supervised release after his prison term, and a mandatory special assessment of $100. Thomas also agreed to forfeit the firearms.
Court proceedings revealed that on June 29, 2010, law enforcement officers executed a search warrant at a residence in East St. Louis, Illinois. A search of the home led to the seizure of two loaded revolvers, marijuana and three digital scales. Thomas admitted ownership of the two firearms and possessing the marijuana in the residence.
This case resulted from the efforts of the WAVE (Working Against Violent Elements) Task Force, which focuses its efforts on combating violent crime in East St. Louis, Washington Park, and surrounding communities. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is assigned to Assistant United States Attorney Daniel T. Kapsak for prosecution.
Eagle Butte Man Sentenced for Third Degree BurglaryRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Third Degree Burglary was sentenced on July 24, 2013, by U.S. District Judge Roberto A. Lange.
Jake Morrison, age 31, was sentenced to 18 months of imprisonment, two years of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and $972.61 in restitution.
Morrison was indicted by a federal grand jury on February 13, 2013, and pled guilty to the indictment on April 30, 2013.
The charge stems from an incident occurring on January 6, 2013, when Morrison, with the help of two other co-defendants, broke into the Chatter Box Corner Café in Timber Lake and stole several bottles of alcohol.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Morrison was immediately turned over to the custody of the U.S. Marshals Service.Drug Thieves Sentenced to Federal PrisonRead the Press Release
Defendants Tried to Rob a Government Cooperator at Gunpoint
ROME, Ga. - Ospicio Olea Aguilar has been sentenced for his role in conspiring to steal cocaine and marijuana from a man he thought was a drug dealer, but who in reality was working at the direction of law enforcement officers.
“These seven defendants played a risky game when they tried to rob a drug dealer at gunpoint,” United States Attorney Sally Quillian Yates said. “Thanks to the quick action of law enforcement, the armed robbery ended not in tragedy but in the arrests of all the men involved in this conspiracy.”
According to United States Attorney Yates, the charges and other information presented in court: In October 2011, Aguilar, and co-defendants Tedrick Whiters and Sergio Jovanny Bibiano Vasquez, approached a man in Marietta, Ga., who they believed would be able to sell them cocaine. Unbeknownst to them, this man had previously cooperated with law enforcement, and he contacted officers to let them know what happened. He agreed to work at the direction of law enforcement.
Over the following weeks, the cooperator spoke and met with Aguilar, Vasquez and Whiters to discuss the drug deal. Whiters attempted to have the drug deal take place in Atlanta, but the cooperator stated that his supplier was from Dalton, Ga., and would only go as far south as Cartersville. Whiters, Aguilar and Vasquez convinced the cooperator to go to Atlanta on one occasion to discuss the deal. The real purpose of the meeting was to rob him of the drugs in case he happened to have the drugs with him. Co-defendant Frederico Jerburshio Jones followed the cooperator, and was prepared to rip off the cooperator at gunpoint if he had the drugs with him. Eventually, Whiters, Aguilar and Vasquez asked the cooperator to provide five kilograms of cocaine and 150 pounds of marijuana for a total cost of $217,500. They agreed that the deal would take place on November 2, 2011, at the Cracker Barrel restaurant off I-75 exit 290 in Cartersville.
Around 11:00 a.m. on November 2, 2011, law enforcement set up surveillance in an area overlooking Cracker Barrel. As they set up surveillance, they noted that co-defendants Willie Charles Townsend, Corwin Jackson Finsley and Maurice Jammorow Beavers were setting up counter surveillance. These three men left their first meeting site and moved to different locations, some of them out of the line of sight of law enforcement.
Eventually, Vasquez called the cooperator and said that they were near exit 290. Vasquez showed up in a car driven by Finsley, with Jones in the front passenger seat. Jones got out of the car, confirmed that the cooperator had the drugs, and told him that they should move the deal next door to the Shell gas station, which, unlike Cracker Barrel, did not have surveillance cameras. The cooperator agreed and moved his vehicle to the Shell station.
When he got out of his car, Jones pulled a gun on him and ordered him to get into Jones’s car. The cooperator struggled with Jones and was able to wrestle the gun away. He threw the gun under a car and ran into the Shell station convenience store. Jones ran after him, but the cooperator held the doors to the store shut. The cooperator was wearing a wire while all of this was happening. Law enforcement knew that what was supposed to be a buy-bust operation was turning into a drug rip and attempted kidnapping. Agents moved in and arrested Jones as he attempted to flee, and also stopped the car that Finsley was driving. Law enforcement drew their firearms on Finsley as he attempted to reach under his seat, where officers later found a 9mm Kel-Tech pistol. Officers also stopped the car that Townsend and Beavers were in as they attempted to drive away. Because Whiters and Aguilar were in a different area overlooking the scene, they were able to drive away. But, they were arrested later that day in Atlanta.
Aguilar was the last of seven defendants to be sentenced for this crime. The defendants were charged with one count of conspiracy to attempt to commit a robbery and one count of possessing firearms in relation to the robbery. They were also charged with one count of conspiracy to possess with intent to distribute cocaine and marijuana and one count of possessing firearms in furtherance of drug trafficking. The defendants were sentenced as follows:
•Aguilar, 28, of Atlanta, Georgia, has been sentenced to 15 years in prison to be followed by 5 years of supervised release. Aguilar was convicted of these charges on April 15, 2013, after he pleaded guilty.
•Whiters, 39, of Atlanta, Georgia, was sentenced on July 23, 2013, to 17 years in prison to be followed by 5 years of supervised release. Whiters was convicted of these charges on April 15, 2013, after he pleaded guilty.
•Vasquez, 24, of Atlanta, Georgia, was sentenced on August 30, 2012, to 15 years in prison to be followed by three years of supervised release. Vasquez was convicted of these charges on June 7, 2012, after he pleaded guilty.
•Jones, 41, of Atlanta, Georgia, was sentenced on October 11, 2012, to 15 years in prison to be followed by five years of supervised release. Jones was convicted of these charges on July 26, 2012, after he pleaded guilty.
•Townsend, 35, of Atlanta, Georgia, was sentenced on January 10, 2013, to 15 years in prison to be followed by five years of supervised release. Townsend was convicted of these charges on October 18, 2012, after he pleaded guilty.
•Finsley, 43, of Atlanta, Georgia, was sentenced on October 11, 2012, to 15 years in prison to be followed by five years of supervised release. Finsley was convicted of these charges on July 26, 2012, after he pleaded guilty.
•Beavers, 29, of Atlanta, Georgia, was sentenced on July 23, 2013, to 15 years in prison to be followed by 5 years of supervised release. Beavers was convicted of these charges on April 18, 2013, after he pleaded guilty.
This case was investigated by the FBI Bartow-Cartersville Drug Task Force with assistance from the United States Marshals Service.
Assistant United States Attorneys William G. Traynor and Paul R. Jones prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
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.
Dos residentes de Florida fueron imputados por cargos de conspiración para defraudar y amenazar a consumidores de habla hispanaRead the Press Release
Un gran jurado en el Distrito Sur de Florida imputó a dos individuos por cargos de conspiración, fraude y extorsión, alegando que manejaban una serie de empresas fraudulentas con consumidores de habla hispana como objetivo, anunciaron hoy el Departamento de Justicia y el Servicio de Inspección Postal de EE.UU. (USPIS). Fueron imputados Daniel Carrasco, 54, y Federico Martin Gioja, 45, ambos de Miramar, Fla. por crear, poseer y administrar empresas de Florida que utilizaban a televendedores en una sala telefónica en la Argentina para extraerle dinero a consumidores, utilizando mentiras y extorsión.
Carrasco y Gioja fueron acusados penalmente y arrestados el 26 de junio de 2013. Desde entonces, han estado encarcelados. Carrasco y Gioja y una tercera persona, Romino Tasso, también fueron nombrados en una demanda civil entablada por el Departamento de Justicia. En la demanda civil, el Departamento de Justicia solicitó que el tribunal emitiera un interdicto y, consecuentemente, la Jueza Cecilia Altonaga emitió una orden de restricción temporal prohibiendo futuras mentiras a consumidores y congelando los bienes de Carrasco, Gioja, Tasso y compañías bajo su control.
"Utilizaremos todas las herramientas a nuestra disposición, lo que incluye el congelamiento de activos, desagravio judicial y enjuiciamiento penal, contra las empresas que mientan, extorsionen, amenacen y defrauden a consumidores", dijo Stuart F. Delery, Secretario de Justicia Auxiliar Interino de la División Civil del Departamento de Justicia. El proteger a los ciudadanos de los Estados Unidos contra el fraude sigue siendo una de las principales prioridades del Departamento de Justicia".
De acuerdo con la demanda civil y la declaración jurada presentada como respaldo a la demanda penal, el caso fue el resultado de una remisión realizada por una estación de televisión de habla hispana, Univision. Se alega que compañías pertenecientes a Carrasco y Gioja alegaron falsamente ser afiliadas a Univision y vender productos como vitaminas, lociones, seguro médico y productos de enseñanza del idioma inglés. Sin embargo, las compañías solían no enviar los productos comprados por los consumidores y los consumidores recibían otros productos en lugar de los comprados. De acuerdo con la acusación formal, cuando los consumidores se negaban a recibir los envíos de las compañías, los televendedores de la sala telefónica de la Argentina llamaban y amenazaban falsamente a los consumidores con el arresto, la deportación o multas en sus cuentas de gas y electricidad.
El Fiscal Federal para el Distrito Sur de Florida Wifredo A. Ferrer señaló, "Estos demandados tenían como objetivo específico a víctimas de habla hispana, se hicieron pasar por afiliados de Univision para vender sus productos a partir de su sala telefónica en la Argentina cuando, de hecho, no tenían ningún vínculo con Univision y sus compañías no enviaban los productos pedidos por los consumidores. "Nos comprometemos a investigar y enjuiciar a estafadores como estos, tanto nacionales como internacionales, cuyos ardides defraudan a los consumidores".
De acuerdo con las demandas penal y civil, Carrasco y Gioja cambiaban con frecuencia los nombres de las compañías que utilizaban para hacer negocios, para evadir las quejas de los consumidores, las agencias reguladoras y las fuerzas del orden público. Se alega que una serie de dependencias del estado se comunicaron con las empresas acerca de sus prácticas ilícitas. Las personas que trabajaban con Carrasco y Gioja, se referían a estas compañías objeto de quejas como "quemadas" en mensajes de correo electrónico citados en la declaración jurada presentada para respaldar el arresto. En lugar de modificar las prácticas de las compañías "quemadas", se alega que Carrasco y Gioja crearon compañías nuevas dedicadas a las mismas prácticas ilegales.
Se conoció inicialmente el supuesto fraude cuando la red de habla hispana Univision informó al USPIS que creían que una compañía estaba llevando a cabo un ardid fraudulento en el que se hacía pasar como afiliada de la red. Posteriormente, USPIS investigó el caso, presentó una declaración jurada en respaldo a la demanda penal y arrestó a los demandados.
"Los inspectores postales seguirán investigando casos de fraude contra los consumidores y demandarán enérgicamente a quienes utilicen el correo para promover sus ardides delictivos", dijo Rondal Verrochio, Inspector Postal de EE.UU. a Cargo en Miami.
El Secretario de Justicia Auxiliar Interino Delery felicitó al Servicio de Inspección Postal por su labor de investigación y agradeció a la Fiscalía Federal para el Distrito Sur de Florida por sus aportes al caso civil. El caso penal está siendo enjuiciado por el Director Auxiliar Richard Goldberg con la Oficina de Protección al Consumidor [Consumer Protection Branch] del Departamento de Justicia.
District Man Sentenced to Four-Year Prison Term for Robbery and Theft-Defendant Committed Dozens of Other Thefts from Automobiles-Read the Press Release
WASHINGTON – Antoine Dyson, 42, of Washington, D.C., has been sentenced to a four-year prison term on charges stemming from a Capitol Hill robbery and a theft from an automobile in a downtown parking lot, U.S. Attorney Ronald C. Machen Jr. announced today.
Dyson pled guilty in May 2013, in the Superior Court of the District of Columbia, to one count each of robbery and first-degree theft. He was sentenced on July 24, 2013 by the Honorable Robert I. Richter. Upon completion of his prison term, Dyson will be placed on three years of supervised release.
According to the government’s evidence, on July 13, 2012 at about 4:10 p.m., Dyson was observed on surveillance video entering the Grand Hyatt hotel parking garage in the 1000 block of G Street NW, carrying a single black briefcase. He went to the corner of the garage and returned several minutes later carrying a second black briefcase. Shortly thereafter, the victim reported that the rear passenger window of his 2005 Lexus sports utility vehicle had been shattered, and that a black briefcase containing an Apple iPad2 tablet computer, an iPod Touch portable music player, and a Nikon Coolpix digital camera, among other items, was missing. The victim viewed the surveillance video and confirmed that the second black briefcase carried by Dyson was the briefcase that had been stolen from his vehicle.
Months later, on Nov. 27, 2012, at about 8:30 p.m., Dyson entered the Matchbox restaurant in the 500 block of 8th Street SE, and was observed by an eyewitness removing a second victim’s wallet from her purse, which was hanging from a hook at the restaurant’s bar. The eyewitness chased Dyson out of the restaurant and confronted him about the robbery. Dyson then fled in a sports utility vehicle and was stopped several blocks away by officers of the Metropolitan Police Department (MPD). The victim’s wallet was recovered near where Dyson’s vehicle had been stopped and the eyewitness positively identified Dyson as the perpetrator.
Dyson also was suspected in approximately 72 break-ins of automobiles located in parking garages throughout downtown Washington from January 2011 to November 2012. The break-ins were primarily focused at the Grand Hyatt and Gallery Place parking garages. Dyson often shattered windows to gain access to automobiles, before fleeing with electronics or other valuables contained within the vehicles. As a result of the government’s investigation, these cases were successfully closed, and the government agreed not to bring any charges in exchange for Dyson’s plea of guilty to robbery and first-degree theft in May.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the MPD. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Donville Drummond and Tamaya Reid, Investigative Analyst William Hammon, and Assistant U.S. Attorneys Scott Ray and Clare Pozos. Finally, he thanked Assistant U.S. Attorney Michael Spence, of the Felony Major Crimes Section, who prosecuted the matter.
13-260DeSoto, Texas, Man Sentenced to Nearly 25 Years in Federal Prison for Producing Child PornRead the Press Release
DALLAS — Quaylan Anderson, 25, of DeSoto, Texas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 293 months in federal prison, following his guilty plea in April 2013 to one count of production of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in December 2011, Anderson met Jane Doe, who was then 13-years-old. Anderson admits that on multiple occasions between December 2 and December 5, 2011, he engaged in sexual acts with Jane Doe, and on some of those occasions, he used his cell phone to take photos of himself and Jane Doe engaging in that sexually explicit conduct.
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 case was investigated by the DeSoto Police Department and the FBI. Assistant U.S. Attorney Lisa J. Miller was in charge of the prosecution.
Dallas Man, Who Admitted Aiming A Laser Pointer at an Aircraft,is Sentenced to 30 Months in Federal PrisonRead the Press Release
DALLAS — Kenneth Santodomingo, aka “Juan Goel Pagan” and “Juan Joel Pagan,” 22, was sentenced today by U.S. District Judge Reed C. O’Connor to 30 months in federal prison, following his guilty plea in February 2013 to an indictment charging one count of aiming a laser pointer at an aircraft. Santodomingo was arrested on January 28, 2013, after a criminal complaint was filed for the offense, and he has been in custody since that time. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
“This young man’s conduct was extraordinarily dangerous and could have had disastrous consequences, which was reflected in the Court’s sentence today,” said U.S. Attorney Saldaña. “I commend the Dallas Police Department, the FBI and the Transportation Security Administration’s Federal Air Marshal Service for their work in this investigation.”
According to documents filed in the case, at approximately 4:08 a.m. on January 28, 2013, two Dallas Police Department (DPD) officers were operating a DPD helicopter over a residential area in search of a motor vehicle burglary suspect when the cockpit was illuminated by a laser pointer approximately four times over a 10-minute period. The intensity of the light refracting across the aircraft’s windscreen obscured the pilot’s vision and impaired his ability to view the instruments and the ground, forcing the pilot to turn the aircraft in a different direction to avoid vision damage and maintain aircraft control.
After pinpointing the origin of the laser, the pilots observed, via the onboard camera’s thermal imaging, an individual in the backyard of a residence in the 7000 block of Lake June Road. When patrol officers arrived at the house, Santodomingo answered the door, eventually admitted to having pointed the green laser light at the helicopter out of curiosity as to how far it would go, and handed over the laser pointer to the officers.
Assistant U.S. Attorneys Katherine Miller and J. Mark Penley prosecuted.
Charlestown Resident Sentenced for Tax Scheme at Suffolk DownsRead the Press Release
BOSTON – A Charlestown man was sentenced today for his scheme to help gamblers at Suffolk Downs evade the payment of taxes on over $2 million in winnings.
Gary Boyar, 53, was sentenced by U.S. District Judge Richard G. Stearns to one year and one day in prison, and ordered to pay $43,149 in restitution to the Internal Revenue Service. In February 2013, Boyar pleaded guilty to corruptly endeavoring to impede the IRS and tax evasion.
Boyar was a “10-percenter,” a phrase referring to the 10-percent fee charged by those who cash winning tickets for gamblers so that the gamblers’ identities are not reported to the IRS. This scheme allowed gamblers to avoid paying taxes on their winnings, which were taxable income. When Boyar cashed tickets and submitted forms to the IRS associated with those tickets, he used his deceased father’s social security number to obstruct the IRS. During the tax years 2004 through 2006, Boyar cashed more than $2 million in tickets at Suffolk Downs that belonged to winning gamblers, and submitted approximately 1,713 false IRS forms using his deceased father’s social security number. This conduct obstructed the IRS from determining the identities of the actual winners.United States Attorney Carmen M. Ortiz, Assistant Attorney General Kathryn Keneally of the Department of Justice Tax Division, and Special Agent in Charge William P. Offord of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Trial Attorney Sean R. Delaney of the Tax Division.
Calvert County Man Sentenced to over 8 Years in Prison for Transporting Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced David Dobbs, age 55, of Port Republic, Maryland, today to 104 months in prison, followed by lifetime supervised release, for transporting child pornography. Judge Messitte ordered that 14 months of Dobbs’ sentence be concurrent to his state sentence. Judge Messitte also ordered that upon his release from prison, Dobbs must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.
According to the plea agreement, on two occasions in 2010, Dobbs used a file sharing program to make his files of child pornography available to undercover law enforcement officers, who downloaded a total of 16 videos and five images of children engaged in sexually explicit conduct. On September 13, 2010, Dobbs also engaged in a chat with the undercover officer, telling the officer that he liked “girls around seven years old and up.”
On April 13, 2012, Dobbs was interviewed in connection with another investigation and admitted using a file sharing program and a particular screen name when he chatted with the undercover officer. A search warrant was executed at Dobb’s residence and law enforcement seized a laptop computer and an SD card that appeared to have been pierced with a blunt instrument. Child pornography was recovered from the computer and the SD card, including images of prepubescent children engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section, who prosecuted the case.
CHARGING & SUPPORTING DOCUMENTS: U.S. V. S.A.C. Capital Advisors, L.P., Et Al.Read the Press Release
U.S. v. Richard Lee Information
U.S. v. SAC Capital Civil Forfeiture Complaint
U.S. v. SAC IndictmentBusinessman, William P. Mack, Sentenced for Bribing Former Jefferson Parish President Aaron BroussardRead the Press Release
WILLIAM P. MACK, 64, a resident of Kenner, Louisiana, was sentenced today to 20 months in prison by U.S. District Judge Nannette Jolivette Brown for conspiracy to commit bribery, announced U.S. Attorney Dana J. Boente. In addition to the term of imprisonment, Judge Brown fined MACK $60,000 and placed him on two years of supervised release.
According to court documents, beginning in 2002, MACK, the former President and owner of First Communications Company (“FCC”), a provider of telecommunications equipment and services, began a business relationship with then-Jefferson Parish councilman Aaron F. Broussard (“Broussard”). This relationship entailed MACK paying Broussard approximately $1,500 per month in exchange for Broussard’s official acts to steer telecommunications work to MACK and his company. By 2004, when Broussard was elected Jefferson Parish President, MACK continued to corruptly pay Broussard approximately $1,500 per month in exchange for Broussard’s efforts to steer work, including Parish telecommunications work, to FCC. As noted in the factual basis, during the time Broussard was Parish President, MACK paid him approximately $66,000 in exchange for, among other things, Jefferson Parish telecommunications work, collectively worth approximately $40,000.
In September 2012, Broussard, the former Jefferson Parish President, pled guilty to multiple corruption charges, including conspiracy to commit bribery involving the bribes paid by MACK. Broussard was ultimately sentenced to 46 months imprisonment.
The case was investigated by special agents of the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Matt Chester and Brian Klebba.
Business Owner Sentenced for Failing to Pay Employee Withholding Taxes to IRSRead the Press Release
PITTSBURGH, Pa. - A resident of Monroeville, Pa., has been sentenced in federal court to 18 months in prison and three years supervised release on his conviction of failure to pay taxes associated with his businesses, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Richard D. Edwards, 55, of Monroeville, Pa.
According to information presented to the court, Edwards failed to account for and pay over withholding taxes for various employees in his business Custom Patio Rooms .
Prior to imposing sentence, Judge Diamond stated that Edwards had deliberately continued to fail to pay withholding taxes for a period of more than two years despite having been warned by both an accountant and an attorney that he had to file proper returns and pay the taxes reported on those returns. Judge Diamond also noted that Edwards and/or his businesses had more than 300 contacts of various kinds with the IRS urging him to properly report and pay his taxes during the time period in question.
In addition to the time in prison and the period of supervised release Edwards was also ordered to pay all back taxes, penalties and interest that were due and owing.
U.S. Attorney Hickton commended the Internal Revenue Service Criminal Investigation Special Agents who for the investigation leading to the successful prosecution of Edwards.
Buffalo Woman Arrested, Charged with Bank RobberyRead the Press Release
BUFFALO, N.Y.–The United States Attorney’s Office announced today that Adlyn Marie Echevarria Robles, 20, 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 1580 Hertel Avenue in Buffalo, on July 5, 2013, and the M&T Bank, located at 709 Elmwood Avenue in Buffalo, on July 24, 2013. The complaint further alleges that Robles passed notes to the bank tellers indicating she possessed bombs and that she would detonate if she was not provided money.
The defendant made an initial appearance today before U.S. Magistrate Judge Jeremiah J. McCarthy and was released on bond.
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.Buffalo Man Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Pascual Giovanny Navarro-Gonzalez, 29, of Buffalo, NY., pleaded guilty before U.S. District Judge Richard J. Arcara, to conspiracy to possess with intent to distribute, and to distribute heroin and cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, a $5,000,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that Navarro-Gonzalez was one of three men arrested on March 6, 2012 after law enforcement officers executed a search warrant at his residence at 39 Montclair Avenue in Buffalo. Officers seized heroin, cocaine, ammunition, and drug paraphernalia. During the investigation, several purchases of heroin were made from Navarro-Gonzalez.
Co-defendants Erick Joel Reyes Barretto and Juan Montanez previously pleaded guilty to conspiracy to possess with intent to distribute heroin and cocaine. Reyes Barretto was sentenced to 60 months in prison, and Montanez is scheduled for sentencing on October 4, 2013.
The plea is the culmination of an investigation on the part of Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard, and the Ohio State Highway Patrol, under the direction of Colonel John Born.
Navarro-Gonzalez is scheduled to be sentenced on November 22, 2013 at 12:00 p.m. before Judge Arcara.Brody Sentenced to 41 Months in Prison in Connection with Real Estate Investment SchemeRead the Press Release
Sentence Includes $1,331,075.36 in Restitution to VictimsSALT LAKE CITY – Patrick Merrill Brody, age 47, of Salt Lake City, who pleaded guilty in May to wire fraud and money laundering in connection with a real estate investment scheme, will serve 41 months in federal prison.
U.S. District Judge Robert J. Shelby, who imposed the sentence Thursday in federal court, also ordered Brody to pay restitution of $1,331,075.36 to victims in the case and serve 36 months of supervised release when his prison sentence concludes.
Brody was charged with conspiracy, mail and wire fraud, and money laundering in a nine-count indictment returned by a federal grand jury in October 2012. The indictment alleged Brody and his wife, Laura Ann Roser, operated Art Intellect, Inc., a Utah corporation doing business as Mason Hill. The business had offices in Salt Lake City and Cape Coral, Florida. Mason Hill solicited and sold investments in real estate properties. It offered potential clients an option for investing in rental residential properties in several states. Mason Hill offered to sell investors rental properties at a low price, repair and rehabilitate them if necessary, find renters for the properties, collect rent, and maintain and manage the properties for the benefit of the investors.
The indictment alleged that once received, investors’ funds were comingled with other investors’ money, used to purchase properties for earlier investors, and used to pay operating expenses of Mason Hill as well as personal expenses for the defendants – among other things. In some instances, investors’ money was used to make Ponzi payments to earlier investors.
As a part of a plea agreement reached with federal prosecutors, Brody admitted that from April 2009 through early 2011 he made important business decisions for the company, hired and instructed employees, and directed the use of company proceeds.
Brody admitted that the company ultimately began operating a scheme that obtained money or property through fraudulent representations or promises. The fraudulent representations were made with the intent to induce clients to make investment payments to Mason Hill. Funds invested through the scheme were converted to personal use by Brody, which deprived the company of the capital necessary to complete real estate transactions as promised. Many of the clients, who invested in the scheme, did not receive any property or any other thing of value in return for their investment payments, and did not receive a refund of their payments.
Roser pleaded guilty in June to a one-count Misdemeanor Information charging her with inducing or attempting to induce the purchase and sale of a security without being registered as a broker-dealer with the U.S. Securities and Exchange Commission and without being associated with a broker-dealer registered with the Commission, but in doing so, the defendant had no knowledge of such registration requirement. Roser is scheduled to be sentenced Aug. 22, 2013, at 2 p.m. in Judge Shelby’s courtroom.The case is being prosecuted by the U.S. Attorney’s Office and investigated by special agents of the FBI and IRS Criminal Investigation.
Boston Man Convicted of Health Care FraudRead the Press Release
BOSTON – A Boston man was convicted yesterday following a jury trial for a scheme to defraud the Medicare program out of approximately $1 million.
Blessing Sydney Iwuala, 54, of Hyde Park, was convicted of conspiracy to commit health care fraud and three counts of health care fraud following an eight-day jury trial.
Iwuala was convicted of conspiring to bill the Medicare program for more than $1 million of durable medical equipment, including power wheelchairs, for Medicare patients who did not order and did not need the equipment. Medicare paid Iwuala approximately $450,000 in connection with the scheme.
Iwuala owned and operated a medical supply store called Above All Homecare and Supply, Inc. (Above All). Iwuala allowed a co-conspirator (Person A), whose Medicare supply privileges had been revoked, to use Above All as a front to submit fraudulent Medicare claims for patients in Texas. After doing virtually no business for the first 15 months of its existence, between February 2009 and May 2009, Above All billed Medicare for more than $1 million of medical equipment for 88 Medicare patients in Texas. Person A obtained these orders by paying another co-conspirator (Person B), for the prescriptions, which were forged. Iwuala allowed Person A to bill Medicare for these claims using Above All’s name, and Iwuala provided Person A with blank Above All paperwork to deliver power wheelchairs and other equipment to Medicare patients, who had not requested the equipment. Shortly after Person A was arrested in connection with a separate health care fraud scheme, Iwuala terminated Above All. Iwuala kept approximately $300,000 of the Medicare proceeds, paying Person A approximately $150,000. Most of the patients who were the subjects of the Above All scheme were “compromised” Medicare beneficiaries whose Medicare information had been used repeatedly in connection with other Medicare fraud schemes. As a result, when some of these patients actually needed medical equipment, they were unable to obtain this equipment due to the Above All fraud scheme, as well as others.
In addition to the conspiracy count, Iwuala was convicted of three health care fraud counts for billing Medicare for unnecessary medical equipment, much of which was never delivered, for three patients in Texas.
U.S. District Court Judge Richard G. Stearns scheduled sentencing for Iwuala on October 18, 2013. The statutory maximum penalty for each of the four charges is 10 years in prison, followed by three years of supervised release, a fine of $250,000 or twice the gross gain or loss resulting from the offense, restitution to the Medicare program, and forfeiture of any proceeds gained by Iwuala as a result of the offense.
United States Attorney Carmen M. Ortiz, Susan J. Waddell, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General, Office of Investigations, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys David S. Schumacher and Amanda P.M. Strachan of Ortiz’s Health Care Fraud Unit. The trial team was also assisted by Medicare contractor Health Integrity, LLC.
Bossier City Man Pleads Guilty to Counterfeiting $20 Bills in ApartmentRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that Dakota Mallory Robinson, 24, of Bossier City, La., pleaded guilty Wednesday before U.S. District Judge Tom Stagg to making counterfeit Federal Reserve notes.
According to evidence presented at the guilty plea, a duplex manager called the Bossier City Police Department to report that a maintenance worker had observed Robinson making counterfeit money in his apartment with the door open to the public. A search of the apartment Feb. 8, 2013 revealed $2,020 worth of counterfeit $20 bills, a printer, uncut sheets of counterfeit $20 bills, and other related items.Robinson faces up to 20 years in prison, three years of supervised release, and a fine of $250,000 for the charge. A sentencing date of Oct. 24, 2013 was set.
The U.S. Secret Service, Shreveport Office, and the Bossier City Police Department conducted the investigation. Assistant U.S. Attorney Brandon B. Brown is prosecuting the case.
Blackfoot Man Pleads Guilty to Abusive Sexual Contact with A ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that Ta-Sunka-Hinz Thunder Hawk, age 18, of Blackfoot, South Dakota, appeared before U.S. District Judge Roberto A. Lange on July 23, 2013, and pled guilty to an Indictment that charged him with Abusive Sexual Contact With a Child.
The maximum penalty upon conviction is life imprisonment and a $250,000 fine, or both; and a period of supervised release of a least five years up to life. There is also a $100 special assessment to the Federal Crime Victims Fund and restitution may also be ordered.
The conviction stems from an incident in March of 2013 when Thunder Hawk had sexual contact with a child under the age of 12 at a residence near Blackfoot.
The investigation was conducted by the Cheyenne River Tribal Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Thunder Hawk was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for October 14, 2013.Baltimore Car Dealer Owner Pleads Guilty to Structuring Deposits of over $2 Million to Evade Bank Reporting RequirementsRead the Press Release
Businesses that Break Up Cash Transactions to Avoid Paper Trail Face
Prosecution
Baltimore, Maryland – Amefika Gray, age 39, of Baltimore, pleaded guilty today to structuring bank deposits totaling over $2 million over a two year period to avoid bank reporting requirements.
The guilty plea 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 Commissioner Anthony W. Batts of the Baltimore Police Department.
“Federal law requires large currency transactions to be reported in order to deter money laundering, tax evasion and other criminal conduct,” said U.S. Attorney Rod J. Rosenstein. “Businesses that break up their cash deposits to avoid currency reporting requirements face federal criminal prosecution.”
According to his plea, Gray owns Network Auto Group, a car dealership operating at 2631 Gwynns Falls Parkway in Baltimore. Between January 15, 2010 and April 28, 2012, Gray made regular deposits of $10,000 or just under $10,000 into his personal and business bank accounts, including at least 25 instances in which Gray made multiple deposits under $10,000 the same day into the same bank or into different banks. The amount of the structured deposits over this two year period totaled $2,017,205.23. Gray deposited the money in such amounts because he knew that the banks were required to report to the Internal Revenue Service all deposits over $10,000.
Gray and the Government have agreed that if the Court accepts the plea agreement, Gray will be sentenced to 30 months in prison and will be subject to a forfeiture money judgment of $800,000, and will be required to forfeit a Mercedes Benz vehicle and three residential properties located in Baltimore. U.S. District Judge Ellen L. Hollander scheduled his sentencing for October 18, 2013, at 10:00 a.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. 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.
United States Attorney Rod J. Rosenstein praised the IRS – Criminal Investigation and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Evan T. Shea, who is prosecuting the case.
Attorney Sentenced for Stealing over $1.3 Million from Injured ClientsRead the Press Release
ROME, Ga. - Miles Lamar Gammage, a recently disbarred attorney, has been sentenced for defrauding more than 50 of his seriously injured worker’s compensation clients out of settlement funds they were owed.
“This attorney violated the trust placed in him by his clients,” said United States Attorney Sally Quillian Yates. “Instead of helping his clients receive the compensation that they were owed and needed for the treatment of their injuries, he pocketed the money, stealing from people who were already hurting.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office stated: “While today’s sentencing concludes the Government’s case against Mr. Gammage, the enormous damage left behind will be felt by his former clients for quite some time. It is our sincere hope that those many victims of Mr. Gammage’s greed will take some solace in the fact that he has been held accountable for his criminal actions.”
“Criminals such as Gammage, who steal from those looking for help after being seriously injured at work, can expect to be brought to justice,” said Vernon Keenan, Director of the Georgia Bureau of Investigations.
According to United States Attorney Yates, the charges and other information presented in court: Gammage, 59, of Cedartown, Ga., was licensed to practice law in the state of Georgia from June 1979 through January 2012. He owned and operated The Gammage Firm in Cedartown, where he specialized in workers’ compensation cases and represented people who were seriously injured on the job. From approximately January 2008 through January 2012, Gammage converted more than $1.3 million of his clients’ settlement funds to his own use. He used the stolen funds to pay his own expenses and to pay his law firm’s payroll and operating expenses. Gammage also settled claims on behalf of clients without authorization; failed to notify clients that he had received their settlement checks; forged clients’ names on settlement checks and deposited those checks into bank accounts that he controlled; commingled clients’ funds with his own funds; and refused to provide clients with a full and accurate accounting concerning the disposition of their settlement funds.
When clients asked why they had not received their settlement funds, Gammage blamed the delay on others. He also delayed disbursing any portion of the settlement funds to clients as long as possible. When clients insisted that they needed money to pay medical bills and purchase medication, Gammage tried to pacify them by giving them partial payments, which he referred to as “advances” and “interest-free loans.” By engaging in such tactics, Gammage lulled his clients into a false sense of security and delayed their complaints to law enforcement authorities.
On January 8, 2013, Gammage pleaded guilty to a Criminal Information charging him with mail fraud. United States District Judge Robert L. Vining sentenced Gammage to serve five years and ten months in federal prison. He was also ordered to serve three years on supervised release following his prison term. Judge Vining is reviewing the amount of restitution owed to the victims and will announce his decision at a later date.
This case was investigated by the Federal Bureau of Investigation and the Georgia Bureau of Investigation.
Assistant United States Attorney Russell Phillips prosecuted 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.
Attorney General Eric Holder Welcomes the Confirmation of Tony West as the Associate Attorney General of the United StatesRead the Press Release
Attorney General Eric Holder today welcomed the confirmation by the U.S. Senate of Tony West as the Department of Justice’s Associate Attorney General.“Tony has served with distinction since he returned to the Justice Department in 2009,” said Attorney General Holder. “As a key member of the department's senior management team, he has led with integrity, acting always in the best interests of the American people and in accordance with the finest traditions of public service. I applaud his confirmation by the U.S. Senate today, and look forward to continuing to work with him as Associate Attorney General – a role in which he has excelled, in an acting capacity, for more than a year.”
President Barack Obama nominated Tony West to be the Associate Attorney General of the United States, the third-ranking official at the Department of Justice, on Sept. 20, 2012. Mr. West has served as the Acting Associate Attorney General since March of 2012. Previously, he was nominated by the President to be the Assistant Attorney General for the Justice Department's Civil Division, a position that he held between April 20, 2009 and March 12, 2012.
Mr. West's primary responsibility as the Associate Attorney General is to advise and assist the Attorney General and the Deputy Attorney General in formulating and implementing departmental policies and programs related to a broad range of issues, including civil litigation, federal and local law enforcement, and public safety.
As Associate Attorney General, Mr. West oversees the department's civil litigating components (Antitrust Division, Civil Division, Civil Rights Division, Environment and Natural Resources Division, and Tax Division), grant-making components (Office of Justice Programs, Office on Violence Against Women, and Office of Community Oriented Policing Services), and related components (Community Relations Service, Executive Office of U.S. Trustees, Office of Information Policy and Foreign Settlement Claims Commission). Mr. West serves as the Co-Chair of the President's Task Force on Puerto Rico, the Vice Chair of the Steering Committee of the President's Financial Fraud Enforcement Task Force, and the federal government's Chief FOIA Officer.
During his current tenure in Justice Department leadership, Mr. West has taken an active role in coordinating the department's response to the Deepwater Water Horizon oil spill in the Gulf of Mexico; overseeing comprehensive immigration reform; combating financial fraud through enforcement actions such as the department’s lawsuit against Standard & Poor’s Ratings Services; improving public safety by enhancing partnerships between federal, state, local, and tribal law enforcement; championing the voices of crime victims, children, and the elderly; promoting the reauthorization of the Violence Against Women Act; and improving the federal government's relationship with Native American communities.
From April 2009 to March 2012, Mr. West served as the Assistant Attorney General for the Civil Division, which is the largest litigating division in the Department of Justice. In addition to focusing on traditional areas of the Civil Division's work, Mr. West helped the department further its most important priority – protecting national security. He also bolstered the division's affirmative civil enforcement efforts in areas such as health care fraud, mortgage fraud, and procurement fraud to recover taxpayer money lost to fraud and abuse, resulting in unprecedented monetary recoveries. Mr. West similarly emphasized the Civil Division's authority to bring civil and criminal actions to enforce the nation's consumer protection laws, and served in various positions on the Financial Fraud Enforcement Task Force.
Mr. West first joined the Department of Justice a year after graduating from law school when he served as a Special Assistant to the Deputy Attorney General from 1993 through 1994. From 1994 to 1999, he was an Assistant U.S. Attorney in the Northern District of California. From 1999 to 2001, Mr. West served as a state Special Assistant Attorney General in California. Prior to returning to the Justice Department, Mr. West was a litigation partner at Morrison & Foerster LLP in San Francisco.
Mr. West graduated with honors from Harvard College, where he served as publisher of the Harvard Political Review, and received his law degree from Stanford Law School, where he was elected President of the Stanford Law Review.
Ashland Man Pleads Guilty for His Role in Labor Trafficking ConspiracyRead the Press Release
An Ashland man pleaded guilty to one count of conspiracy for his role in a holding woman with cognitive disabilities and her child against their will and forcing the woman to perform manual labor, law enforcement officials said today.
Daniel J. Brown, 33, admitted that from between August 2010 through October 2012, he conspired with Jordie L. Callahan, Jessica L. Hunt and Dezerah L. Silsby to establish and continue a pattern of domination and control over their victims, identified only as S.E. and B.E.
The plea agreement includes a provision that Brown will cooperate with investigators, including testifying truthfully at all court proceedings if necessary.
Callahan, 26, Hunt, 31, and Silsby, 21, all of Ashland, were indicted earlier this month on multiple charges. They are accused of using a combination of violence, threats, sexual assaults, humiliation, deprivation and monitoring to establish and continue a pattern of domination and control over S.E. and B.E., according to the indictment.
Their tactics included beating S.E., threats of beatings to S.E. and B.E., taunting and threatening the victims with pit bulls and snakes, causing the victims to sleep in unsafe and unsanitary conditions, restricting B.E. and S.E.’s access to the bathroom, preventing them from eating regular and suitable meals and forcing S.E. to eat dog food and crawl on the floor while wearing a dog collar, according to the indictment.
Callahan pointed a firearm at S.E.’s head and threatened to kill her if she did not perform the labor and services he and other conspirators commanded. Callahan also forced S.E. on multiple occasions to engage in sex acts with him and threatened that he and Hunt would kill S.E. if she told anyone about the forced sexual acts, according to the indictment.
Callahan, Hunt and Silsby face one count each of the following: conspiracy to violate laws; forced labor; theft of government benefits and acquiring a controlled substance by deception. Callahan and Hunt face an additional charge of tampering with a witness.
The case is being prosecuted by Assistant U.S. Attorneys Chelsea Rice and Thomas E. Getz, with assistance from Trial Attorney Victor Boutros of the Justice Department’s Human Trafficking Prosecution Unit, following an investigation by the FBI and Ashland Police Department, with assistance from the Ashland County Prosecutor’s Office.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including each defendant’s prior criminal record (if any), his or her role in the offenses and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Aryan Brotherhood of Texas Gang Member Pleads Guilty to Federal Racketeering ChargesRead the Press Release
A member of the Aryan Brotherhood of Texas (ABT) gang pleaded guilty today to racketeering charges related to his membership in the ABT’s criminal enterprise, announced Acting Assistant Attorney Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Billy Frank Weatherred, aka “Billy The Kid,” 28, of Dallas, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Weatherred and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Weatherred and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Weatherred has admitted to being a member of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and the promotion of white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect while his conduct is observed by the members of the ABT.
Judge Lake has set sentencing for Oct. 24, 2013, at which time Weatherred faces a maximum penalty of life in prison.Weatherred is one of 36 defendants charged with, among other things, conducting racketeering activity through the ABT criminal enterprise. He is the ninth defendant charged in the indictment to plead guilty.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement -Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Tarrant County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Southern District of Texas.
Aryan Brotherhood of Texas Gang Member Pleads Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON - A member of the Aryan Brotherhood of Texas gang (ABT) pleaded guilty today to racketeering charges related to his membership in the ABT’s criminal enterprise, announced United States Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Billy Frank Weatherred, aka “Billy The Kid,” 28, of Dallas, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Weatherred and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Weatherred and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Weatherred has admitted to being a member of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and the promotion of white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect while his conduct is observed by the members of the ABT.
Judge Lake has set sentencing for Oct. 24, 2013, at 2:00 p.m., at which time Weatherred faces a maximum penalty of life in prison.
Weatherred is one of 36 defendants charged with, among other things, conducting racketeering activity through the ABT criminal enterprise. He is the ninth defendant charged in the indictment to plead guilty.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; sheriff’s offices in Harris, Tarrant, Atascosa, Orange and Waller Counties; police departments in Alvin, Carrollton and Mesquite Texas; as well as the Montgomery and Atascosa County District Attorney’s Offices.
The case is being prosecuted by the U.S. Attorney’s Office of the Southern District of Texas and the Criminal Division’s Organized Crime and Gang Section.
Army National Guard Captain Pleads Guilty to Playing a Lead Role in Bribery and Fraud Scheme Resulting in a Loss of $210,000<br /> to the U.S. Army National Guard BureauRead the Press Release
A captain in the Army National Guard pleaded guilty today to playing a lead role in a bribery and fraud scheme resulting in a loss of at least $210,000 to the U.S. Army National Guard Bureau, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Capt. Fabian Barrera, 46, of Schertz, Texas, was indicted on April 17, 2013, in the U.S. District Court for the Western District of Texas on charges of conspiracy, bribery, wire fraud and aggravated identity theft. Barrera pleaded guilty to one count of bribery, one count of conspiracy to commit bribery and wire fraud, and one count of aggravated identity theft.
The case against Barrera arises from an investigation into allegations that former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to illegally obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 12 individuals, all of whom have pleaded guilty, including Barrera.
According to court documents, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). G-RAP was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the Army National Guard. Through this program, a participating soldier could receive up to $3,000 in bonus payments for a referral. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.
Court documents state that, between approximately December 2005 and February 2012, Barrera participated as a recruiting assistant in the G-RAP. Barrera admitted that he paid Army National Guard recruiters in the form of cash and check payments for the names and Social Security numbers of potential soldiers. Barrera then used the information to claim that he was responsible for referring these potential soldiers to join the military, when in fact he did not recruit any of them. As a result, Barrera received a total of at least $181,000 in fraudulent recruiting referral bonuses. Also, because of Barrera’s fraudulent referrals, the National Guard Bureau paid Docupak a total of at least $31,000 in administrative fees.
The charge of bribery carries a maximum penalty of 15 years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss. The charge of conspiracy carries a maximum penalty of five years in prison and a maximum fine of $250,000 or twice the pecuniary gain or loss. The charge of aggravated identity theft carries a mandatory penalty of two years in prison, which must be imposed consecutively to any other term of imprisonment, and a maximum fine of $250,000 or twice the pecuniary gain or loss. Sentencing has not yet been scheduled.
The case is being investigated by the San Antonio Fraud Resident Agency of the Army Criminal Investigation Command’s Major Procurement Fraud Unit and the San Antonio Field Office of the Internal Revenue Service Criminal Investigation. The case is being prosecuted by Trial Attorneys Edward J. Loya Jr., Brian A. Lichter, Sean F. Mulryne and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section.Alien, Jose Transito Lopez, Sentenced for Illegal ReentryRead the Press Release
JOSE TRANSITO LOPEZ, age 34, a citizen of Honduras, was sentenced today in federal court by U.S. District Judge Jane Triche Milazzo to 82 months imprisonment, announced U.S. Attorney Dana Boente. In addition to the term of imprisonment, Judge Milazzo ordered that LOPEZ be placed on three years of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of supervised release.
According to court documents, on March 7, 2013, LOPEZ pled guilty to a one-count indictment admitting he was an alien who was previously removed and was knowingly and unlawfully found in the United States, in Jefferson Parish, Louisiana on November 14, 2012, without the Attorney General or Secretary of the Department of Homeland Security, having expressly consented to his re-application for admission into the United States. LOPEZ’s sentence was subject to enhancement based on a previous aggravated felony conviction.
This case was investigated by United States Immigration and Customs Enforcement - Enforcement and Removal Operations and the Jefferson Parish Sheriff’s Office. The case was prosecuted by Special Assistant United States Attorney Robert Weir.
Albuquerque Man Pleads Guilty to Robbing BBVA Compass Bank in January 2012Read the Press Release
ALBUQUERQUE – Abran Felipe Armijo, 45, of Albuquerque, N.M., pleaded guilty this morning to a bank robbery charge under a plea agreement with the U.S. Attorney’s Office. Under the terms of his plea agreement, Armijo will be sentenced to a federal prison term within the range of ten to fifteen years.
Armijo was arrested on Jan. 4, 2012, based on a criminal complaint charging him with bank robbery and subsequently was indicted on the same charge on Jan. 26, 2012. According to the indictment, Armijo robbed the BBVA Compass Bank, located at 13140 Central Avenue SE in Albuquerque, on Jan. 4, 2012.
During today’s proceedings, Armijo entered a guilty plea to the indictment. Armijo admitted that on Jan. 4, 2012, he walked into the BBVA Compass Bank, approached the bank teller and said, “This is a robbery,” and threatened to shoot the teller if he had to show the teller his gun. Armijo admitted obtaining cash from the bank teller and fleeing on foot. He further admitted that later that day, officers of the Albuquerque Police Department found him hiding in a closet in an apartment with a coat covering his head. A bag containing the money he stole from the bank was found in the sleeve of the coat.
Armijo has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney Louis E. Valencia.
Alamo, N.M., Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Prescott Apachito, 24, an enrolled member of the Navajo Nation who resides in Alamo, N.M., pleaded guilty this morning to a federal assault charge under a plea agreement with the U.S. Attorney’s Office.
Apachito was arrested on Feb. 11, 2013, based on a criminal complaint charging him with assault with a dangerous weapon with intent to do bodily harm. Apachito subsequently was indicted and charged with two counts of assault with a dangerous weapon. According to the indictment, Apachito committed the offense on Nov. 29, 2012, in Socorro County, N.M., on the Navajo Indian Reservation.
During today’s proceedings, Apachito entered a guilty plea to Count 2, charging him with assault with a dangerous weapon. Apachito admitted that in the early morning hours of Nov. 29, 2012, during an argument with several others, he pulled a utility knife out of his pocket and cut a female victim by slicing her neck. He further admitted stabbing a male victim in the stomach when the victim attempted to restrain him. In his plea agreement, Apachito admitted committing this criminal conduct on the Navajo Indian Reservation.
Apachito has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Apachito faces a maximum penalty of ten years in prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Albuquerque office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney David Adams.
A Northern Kentucky IRS Employee and A Florida Man Accused of Stealing Identities, Committing Mail Fraud and Filing A False Tax ClaimRead the Press Release
COVINGTON, KY - A financial technician, employed in a Boone County, Kentucky office of the Internal Revenue Service (IRS), has been charged with multiple crimes relating to her unauthorized access of an IRS computer, to obtain personal information about tax payers.
On July 18, 2013, a federal grand jury returned a sealed indictment against Joy Fox, 32, of Independence, KY. The indictment, which was unsealed today, charges Fox with eight counts of intentionally exceeding her authorized access to an IRS computer, for the purpose of improperly obtaining personal identifying information of tax payers. She is also charged with three counts of mail fraud and three counts of aggravated identity theft in relation to the mail fraud.
According to the indictment, another individual, Patrick Sharpe, 23, of Tallahassee, FL., was charged as a co-defendant in the case. Sharpe and Fox allegedly used the personal identifying information of tax payers to obtain online prepaid debit cards, in tax payers’ names, and then attempted to fund the cards using the tax payers’ social security benefits. Once the cards were approved, the defendants caused the cards to be mailed to addresses in Kentucky. Fox and Sharpe are also charged with conspiracy to file a false claim for a tax refund.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, James D. Robnett, Special Agent in Charge, IRS Criminal Investigations Division, Tampa, FL., and Special Agent in Charge Dwaine Brinson, Treasury Inspector General Tax Administration, Chicago Field Division, jointly announced the indictment.
The investigation preceding the indictment was conducted by agents of the IRS, Criminal Investigation Division, Tallahassee, FL., the Leon County Sheriff’s Office, Tallahassee, FL., and agents of the U.S. Treasury Inspector General Tax Administration, Covington, KY. The indictment was presented to the grand jury by Assistant U.S. Attorney Laura Voorhees.
Fox appeared in court today, while Sharpe is scheduled to appear on August 14, 2013. The Court has scheduled trial for September 23, 2013. The mail fraud charges carry a maximum of 20 years imprisonment; the exceeding authorized access charges carry a maximum of 5 years imprisonment; the aggravated identity theft charges carry two years imprisonment, which must run consecutively to any other sentence imposed; and the filing a false claim for refund charge carries a maximum of 10 years imprisonment. The defendants could also be fined a maximum of $250,000. However, any sentence imposed would come after the court considers the U.S. Sentencing Guidelines and the federal statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial, at which the government must prove their guilt beyond a reasonable doubt.
14 Indicted in Baltimore Heroin Distribution ConspiracyRead the Press Release
Three Defendants Still at Large
Baltimore, Maryland - A federal grand jury has indicted 14 individuals in a Baltimore heroin distribution conspiracy. The indictment was unsealed today upon the arrests of nine defendants and the execution of three search warrants. Two defendants are in custody on state charges and three remain at large. Over 100 agents and officers assisted in today’s arrests and search warrants. The indictment was returned on Tuesday July 22, 2013.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
“I am confident that ATF’s successful execution of federal arrest and search warrants today in Baltimore will make an impact on crime and violence in our community,” said ATF Special Agent in Charge Steven Gerido. “ATF continues to proudly work with its federal, state, and local law enforcement partners to bring criminals to justice.”
“Our ongoing fight against violent crime is more successful with our allied state and federal partners,” said Commissioner Anthony Batts. “We continue to do all we can to reduce crime and violence and I thank all those involved in helping make Baltimore safer.”
The following defendants are charged in the indictment with conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin:
Darryl Robinson, Sr., age 49, of Baltimore;
Mario Williams, age 37, of Baltimore;
Darrell Gilliam, age 42, of Towson, Maryland;
Isiah Robinson, age 27, of Baltimore;
Antonio Berry, age 42, of Baltimore;
Raymond Jefferson, age 43, of Baltimore;
Joyce Dunn, age 51, of Baltimore;
Tyree Howard, age 47, of Baltimore;
Hilton Gibbs, age 42, of Baltimore;
Douglas Duncan, age 47, of Baltimore;
Darryl Debro, age 47, of Baltimore;
Kevin Fisher, age 48, of Baltimore;
Eric Johnson, age 42, of Baltimore; and
Reginald Randolph, age 47, of Baltimore.
Raymond Jefferson, Darryl Debro and Kevin Fisher are still being sought. Antonio Berry and Joyce Dunn are in custody on state charges.
The defendants face a minimum mandatory sentenced of 10 years in prison and a maximum of life in prison. The defendants arrested today had initial appearances and were detained pending detention hearings scheduled for July 26 and July 29, 2013.
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 the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs and Scott Lemmon, who are prosecuting the case.
11 indicted for conspiring to distribute controlled substance in AlaskaRead the Press Release
Indictments charge a source of supply for “Up North ‘D’ Boys” rap group, as well residents of Fairbanks, Anchorage, and the States of Washington, California and Florida with drug and money laundering offenses
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today, July 25, 2013, that the grand jury has returned two additional drug conspiracy indictments stemming from the same investigation that resulted in charges against numerous members of an Anchorage based rap group back in August of 2012. That indictment alleged a conspiracy to distribute over 50 kilograms of cocaine in Anchorage and Fairbanks. All but the alleged ringleader, Terrance S. Fleming, a/k/a “Baydilla”, have since pled guilty. Fleming currently has a trial scheduled to begin next month.
One of the new indictments, Case Number 3:13-cr-00079-RRB charges a conspiracy to distribute over five kilograms of cocaine, over one kilogram of heroin, ten pounds of methamphetamine, and a quantity of oxycodone, as well as a conspiracy to launder the proceeds of drug trafficking. It charges the following individuals:1. Steven N. Taylor, a/k/a “Louis V.”, a/k/a “Nicky”, 42, of Seattle, WA; 2. James Brown, Sr., A/k/a “Unc”, 65, of Washington; 3. Leonard D. Charles, 39, of Washington; 4. Shawn Cortez Cloyd, a/k/a “Cc”, a/k/a “Rider”, 42, of Anchorage; 5. Timothy W. Northcutt, a/k/a “O.G.” a/k/a “Butch”, 62, of Anchorage; 6. Etienne Q. Devoe, a/k/a “Tin”, a/k/a “Tien”, 40, of Fairbanks; 7. Joshua J. Haynes, a/k/a “Lil’ J”, 34, of Florida (formerly of Fairbanks)
8. Gabrielle P. Haynes, 29, of Fairbanks; and
9. Joseph E. Irving, 54, of Washington.The indictment alleges that Taylor, who was assisted by Brown and Charles, shipped drugs to Alaska from Washington State. Among the drugs alleged to have been shipped by Taylor were approximately ten kilograms of cocaine in November 2011. The Fleming indictment alleges that Fleming and his associate, Donnell Johnson, were the intended recipients of the package.
Those kilograms, along with another five kilograms of cocaine allegedly sent by Taylor to St. Louis, Missouri, were intercepted by the United States Postal Inspection Service, Seattle Division, which joined forces with the Drug Enforcement Administration, the Federal Bureau of Investigation’s Safe Streets Task Force, the Anchorage Police Department’s Special Assignment and Vice Units, and the Internal Revenue Service’s Criminal Investigative Division during the investigation.
In addition, the indictment alleges that Cloyd, Northcutt, Devoe, J. Haynes, and G. Haynes would receive drugs for distribution in both Anchorage and Fairbanks. The indictment alleges that Taylor shipped over 20 parcels of drugs to Alaska, beginning in at least 2009. The indictment provides insight into the drug trafficking business in Alaska, as it alleges that conspirators discussed how heroin and methamphetamine were the most profitable drugs to sell in Alaska, as well as the status of various drug debts owed to Taylor and Brown. The indictment states that Brown told Taylor that Cloyd needed to be “taken care of” and “blasted” for his inability to pay a $29,000 drug debt owed to Brown and Taylor. Finally, the indictment further alleges that drug proceeds were then laundered through bank accounts and financial wire services with the assistance of Taylor, Charles, Northcutt, Devoe, and Irving.Taylor was arrested in Seattle on July 10 and was arraigned on the indictment yesterday in Anchorage. Brown, Charles, and Irving were also arrested in Washington between July 23 and 24. Northcutt was arrested in Anchorage on July 24, and was arraigned on the indictment today. Police are currently seeking the whereabouts of Devoe, Joshua Haynes, and Gabrielle Haynes. Any information on their location can be reported to the DEA at (907) 271-5033.
Cloyd was arrested in Anchorage on July 18 on a separate indictment (Case Number 3:13-cr-00077-TMB) stemming from the same investigation, charging him, along with Aaron Frazier, age 40, of San Diego, CA, and Alfred Frazier, age 42, also of San Diego, with conspiring to distribute heroin and cocaine in Alaska. Both Aaron and Alfred Frazier are also in custody on that indictment. Both Fraziers are prior Alaska residents.U.S. Attorney Loeffler stated, “These indictments send a clear message: there is no place for drug traffickers seeking to do business in Alaska. We have a well-coordinated multiagency team of law enforcement personnel dedicated to pursuing drug traffickers who deal, supply, and impact Alaskans and we will pursue them wherever they are located.”
Inspector in Charge of the Seattle Division of the U.S. Postal Inspection Service Bradley Kleinknecht added that “We are committed to identifying United States mail containing drugs, and our inspectors identified over 20 suspicious packages that were linked to this drug trafficking group. Inspectors are working every day to ensure that drug traffickers know that the United States mail is no safe haven for them.”
The investigative agencies mentioned above were supported by the Postal Inspection Service and DEA office in St. Louis, Missouri, the San Diego Police Department, the FBI’s Seattle District Office, and the Bureau of Alcohol, Firearms, Tobacco and Explosives. The maximum penalties for the drug conspiracy charge include a minimum of 10 years in prison and maximum of life in prison, a $10 million fine, and at least five years of supervised release. The money laundering conspiracy charge carries a maximum penalty of 20 years in prison, as well as a $500,000 fine. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.