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Friday 7 June 2013
Batesland Man Sentenced for Conspiracy to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Batesland, South Dakota man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on June 3, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Abraham Romero, age 52, was sentenced to 120 months’ imprisonment, 3 years' supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
The charge relates to Romero conspiring with others to distribute at least 100 kilograms or more of marijuana in South Dakota between October 2008 and October 2011. Romero pled guilty to the charge on July 30, 2012.
This case was investigated by the Federal Bureau of Investigation, Northern Plains Safe Trails Drug Enforcement Task Force, South Dakota Division of Criminal Investigation, and Bureau of Indian Affairs Office of Justice Services. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Romero was immediately turned over to the custody of the U.S. Marshal.
Army National Guard Member Indicted for Theft of Public MoneyRead the Press Release
DENVER – Thurman L. Foster, age 43, of Fountain, Colorado, was indicted by a federal grand jury in Denver on June 4, 2013 on sixteen counts of theft of public money, the United States Attorney’s Office and the United States Army, Criminal Investigation Command announced. Foster was ordered by summons to appear on June 26, 2013 before U.S. Magistrate Judge Kathleen M. Tafoya for an initial appearance.
In September of 2005, the Army National Guard Bureau, located in Arlington, Virginia, entered into a contract with a company located in Alabaster, Alabama to administer a program called the Guard Recruiting Assistance Program. The Program was designed to offer monetary incentives in the form of recruiting referral bonuses to Army National Guard soldiers, known as Recruiter Assistants (RA), to recruit other individuals to serve in the U.S. Army National Guard. After enrolling online and completing an online training course in recruiting, the RA would establish an online account to record the RA’s recruiting efforts.
If a potential soldier, known as a nominee, signed an enlistment contract, the RA who recruited that nominee would receive a $1,000 payment through direct deposit into a bank account designated by the RA, and another $1,000 if the nominee attended basic training. If the nominee had previously served in the Armed Forces, and thus did not need basic training, the RA would be paid $2,000. The RA was required to obtain a nominee’s personal information directly from that nominee in order to receive the bonus money for that nominee.
According to the indictment, Foster, an Army National Guard solider, who acted as a Recruiter Assistant, did allegedly knowingly steal $22,000 in referral bonuses for a number of nominees from the Guard Recruiting Assistance Program (GRAP), by causing the money to be directly deposited into his bank account despite the fact that he did not personally recruit these nominees.
“This reservist was caught stealing public funds,” said U.S. Attorney John Walsh. “Thanks to the hard work of the Army’s Criminal Investigation Command, the defendant is now in the process of being held accountable.”
“The Colorado National Guard will support the U.S. Attorney’s Office any way possible,” said Major General H. Michael Edwards, The Adjutant General of Colorado and commander of the Colorado National Guard. “This activity is totally contrary to the values and culture of the Colorado National Guard and will not be tolerated. This should serve as an example for those who would abuse public trust. Due to similar issues with this program, nationwide, the GRAP recruiting programs have been cancelled.”
This case was investigated by the United States Army, Criminal Investigation Command.
The defendant is being prosecuted by Assistant United States Attorney Martha A. Paluch.
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Armed Meth Cook Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. - Thomas Brent Casey, 35, of Mobile, was sentenced today to a term of 84 months imprisonment on his conviction for attempt to manufacture methamphetamine and possession of a firearm in furtherance of a drug trafficking felony. Judge Kristi Dubose imposed the sentence this morning, which consisted of a term of imprisonment of 24 months for the drug offense, followed by a consecutive term of imprisonment of 60 months on the gun offense, for a total prison sentence of 84 months, or seven years. The judge ordered that Casey also serve a term of supervised release totaling five years, which will follow his release from custody. No fine was imposed, but the judge ordered that Casey pay $200 in mandatory special assessments.
This case was investigated by the Mobile County Sheriff’s Office. It was prosecuted by Gloria Bedwell in the United States Attorney’s Office in Mobile.
Armed Home Invasion Defendant Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. - Miller Jerrell Griffin, who uses a street name of “Click Down,” was sentenced this morning in federal court to 22 years imprisonment on charges of kidnapping, using a firearm in furtherance of a crime of violence, and conspiracy to use and carry a firearm in furtherance of a crime of violence. The indictment alleged that one of the victims in the case, identified only by the initials of “D.H.,” was shot when Griffin and his co-defendants Brandon Jarrod Nobles and Zerrick Charles Robinson kicked in the door of their Chickasaw residence in November of 2011, yelling “FBI,” and “Police.” Griffin and the others were all armed, and they demanded money and drugs. They shot “D.H.” before kidnapping “A.E.,” the second victim, at gunpoint and demanded a ransom to ensure her release. Griffin is 31 years old and is a resident of Mobile.
Judge Kristi Dubose imposed the sentence on this morning, which consisted of a term of imprisonment of 180 months on counts one and two, followed by a consecutive term of imprisonment of 84 months, for a total prison sentence of 264 months, or 22 years. The judge ordered that Griffin also serve a term of supervised release totaling five years, which will follow his release from custody. No fine was imposed, but the judge ordered that Griffin pay $300 in mandatory special assessments.
This case was investigated by the Chickasaw Police Department, the Federal Bureau of Investigations, the Mobile Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Gloria Bedwell in the United States Attorney’s Office in Mobile.
Anchorage Man convicted of identity theft sentenced to 54 months in prisonRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that an Anchorage man was sentenced for uttering and possessing counterfeited securities, unlawful production of false identification documents, unlawful possession of five or more false identification documents, illegal transactions with an access device, possession of stolen mail, and being a felon in possession of a weapon.
Michael Duane Rogers, 43, of Anchorage, Alaska, was sentenced yesterday by U.S. District Court Judge Sharon Gleason to 54 months in prison. Rogers was ordered to pay $142,855.06 in restitution.
According to Assistant U.S. Attorney Retta Randall, who prosecuted the case, the indictment indicated that beginning in late 2007 and continuing through 2009, Rogers engaged in the unlawful production of counterfeit checks and false identification documents, specifically United States military identification cards and Alaska State driver’s licenses. By using the false identification documents, Rogers defrauded several area businesses by purchasing merchandise and services with the counterfeit checks. He also defrauded businesses by using stolen checks and stolen access devices. The indictment further indicated that Rogers also possessed mail stolen from the United States mail. A previously convicted felon, Rogers was also charged with being in possession of a firearm illegally.
Judge Gleason discussed the egregiousness of Rogers’s acts and the impact on his 188 victims. The financial harm was significant in itself, but many of his victims, who lived paycheck to paycheck, were harmed by the resulting over-draft fees and late payment fees which impacted not only their bank accounts, but potentially their credit ratings.Ms. Loeffler commends the Anchorage Police Department and the United States Postal Inspection Service for the investigation of this case.
Allamakee County Man Charged with Federal Gun and Drug CrimesRead the Press Release
Chad Root, 41, from Waukon, Iowa, has been charged with possessing firearms as a felon, attempting to manufacture methamphetamine, conspiring to manufacture methamphetamine, and possession of pseudoephedrine. The charges are contained in a Superseding Indictment filed on June 5, 2013 in United States District Court in Cedar Rapids.
The Superseding Indictment alleges Root possessed ten different firearms, including one with an obliterated serial number, after having been convicted of multiple felony offenses, including Burglary in the Second Degree, Possession of Burglary Tools, Attempted Burglary in the Second Degree, Unauthorized Possession of Offensive Weapons, Possession of a Firearm as a Felon, and Possession of Methamphetamine with Intent to Deliver. The Superseding Indictment also alleges that, for a period of about one year, Root agreed and conspired with others to manufacture methamphetamine, and that Root was attempting to manufacture methamphetamine on April 29, 2013. An affidavit filed in the case alleges the firearms were located in Root’s residence during the execution of a search warrant on April 29, and that Root was located in the garage with an active “one-pot” methamphetamine lab.
If convicted, Root faces a mandatory minimum sentence of 10 years’ imprisonment, a possible maximum sentence of life imprisonment, a fine of up to $8,000,000, $400 in special assessments, and at least 8 years and up to a lifetime term of supervised release following any imprisonment.
Root first appeared on April 30, 2013 in federal court in Cedar Rapids pursuant to a criminal complaint, and was ordered detained pending trial. Trial is currently set for September 9, 2013.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.The case is being prosecuted by Assistant United States Attorney Justin Lightfoot and was investigated by Iowa Division of Narcotics Enforcement, the Iowa State Patrol, the Decorah Police Department, the Monona Police Department, the Waukon Police Department, the Postville Police Department, and the Allamakee County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-1007.
Albuquerque Man Pleads Guilty to Hobbs Act Robbery of Albuquerque BusinessRead the Press Release
ALBUQUERQUE – Joel Rodriguez, 37, of Albuquerque, N.M., pleaded guilty yesterday afternoon to robbing a business engaged in interstate commerce under a plea agreement with the U.S. Attorney’s Office. Under the terms of his plea agreement, Rodriguez will be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court.
Rodriguez was arrested in Nov. 2011 in a two-count indictment charging him with (1) violating the Hobbs Act by robbing a business engaged in interstate commerce, and (2) being a felon in possession of a firearm. According to the indictment, Rodriguez robbed a business engaged in payday and short term loans at gunpoint on May 17, 2011. At the time, Rodriguez was prohibited from possessing firearms or ammunition because he previously had been convicted of three felony offenses in the Second Judicial District Court for the State of New Mexico, including trafficking in controlled substances and aggravated assault with a deadly weapon.
Yesterday, Rodriguez pleaded guilty to Count 1 of the indictment charging him with a Hobbs Act robbery at a Check ‘n Go, located at 2810 Coors Blvd. NW in Albuquerque on May 17, 2011. In entering his guilty plea, Rodriguez admitted entering the business, threatening an employee with violence, and demanding money.
Rodriguez has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be set. Under the terms of the plea agreement, Count 2 of the indictment, charging Rodriguez with unlawful possession of a firearm, will be dismissed after Rodriguez is sentenced.
This case was brought as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
The case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Albuquerque Police Department and the Bernalillo County Sheriff’s Office, with assistance from the 2nd Judicial District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorneys Raul Torrez and Jon K. Stanford.
Airtran Employee Arrested for Attempting to Possess CocaineRead the Press Release
Allowed Contraband to Bypass Security Checkpoints
ATLANTA - Rasondo Maurice Norris has been charged in a federal criminal complaint on charges of attempting to possess cocaine with the intent to distribute.
“Security screening at our airports is vital to keeping citizens safe,” said United States Attorney Sally Quillian Yates. “By using his credentials to bypass security with backpacks of contraband, the defendant allowed what he believed to be drugs and weapons onboard commercial flights. Public safety is a responsibility we take seriously, and our office will continue to prosecute those who are endangering our citizens.”
“HSI special agents and our partners from the ATF, DEA and the Federal Air Marshal Service have identified and eliminated a significant security threat at Hartsfield-Jackson,” said Brock D. Nicholson, Special Agent in Charge of ICE Homeland Security Investigations in Atlanta. “While this defendant may have abused his access to secure areas at the airport for simple greed, HSI and our law enforcement partners will remain vigilant in ensuring that any potential security holes are identified and patched as quickly as possible.”
According to United States Attorney Yates, the charges and other information presented in court: Norris, 29, of Stone Mountain, Ga., worked as a baggage handler for AirTran Airlines. In May 2013, Special Agents of HSI learned that, for a fee, Norris would help people involved in criminal activity bring contraband onto airplanes by using his security clearance to bypass security.
On or about May 23, 2013, an HSI Special Agent, acting in an undercover capacity, gave the defendant a backpack containing what was represented to be five kilograms of cocaine. Norris took the backpack from the undercover agent, bypassed security, and returned the backpack back to the agent once the agent cleared security. In a similar manner, on May 30, 2013, Norris again bypassed security with a backpack, this time containing what was represented to be $500,000 in drug proceeds. Finally, on June 5, 2013, Norris once more bypassed security with a backpack carrying what was represented to be three kilograms of cocaine, and a Mack 11 automatic firearm (which had been previously rendered inert by law enforcement agents), a magazine and a silencer. Norris was paid between $600 and $800 each time he bypassed security with the contraband.
The criminal complaint charges two counts of attempting to possess cocaine with the intent to distribute. The charges carry a maximum sentence of life imprisonment for count one and 40 years in prison for count two and a fine of up to $10,000,000 for count one and $5,000,000 for count two. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
Norris is scheduled for a bond hearing on June 12, 2013 at 1:30 p.m. before U.S. Magistrate Judge Vineyard.
The agents who investigated this case are assigned to the David G. Wilhelm OCDETF Strike Force and are employed by the following law enforcement agencies: the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Internal Revenue Service Criminal Investigation; and the Drug Enforcement Administration.
Assistant United States Attorney Kamal Ghali is prosecuting the case.
Members of the public are reminded that the complaint contains only allegations. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.
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.
Thursday 6 June 2013
Waterbury Crack Dealer Sentenced to 27 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that TYRONE BURRUS, 48, of Waterbury, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 27 months of imprisonment, followed by four years of supervised release, for selling crack cocaine.
According to court documents and statements made in court, in early 2012, the Bureau of Alcohol, Tobacco, Firearms and Explosives began an investigation into the distribution of crack cocaine and related criminal activity in the area of Locust Street in Waterbury. On two occasions in April 2012, BURRUS sold crack to individuals working with law enforcement.
On January 24, 2013, BURRUS pleaded guilty to one count of possessing with the intent to distribute and distributing cocaine base (“crack”).
BURRUS’s criminal history includes 15 felony convictions, and he currently has additional crack distribution charges pending in state court.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Waterbury and Bridgeport Police Departments. This case is being prosecuted by Assistant United States Attorney Michael E. Runowicz.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Undercover Investigation Results in Three Arrests and Seizure of Fifteen Pounds of MethamphetamineRead the Press Release
ALBUQUERQUE – Arturo Reynaga, 29, of Los Lunas, N.M., Joaquin Alire, 29, of Albuquerque, N.M., and Jose Lopez-Hernandez, 31, a Mexican national residing in Belen, N.M., made their initial appearance this morning in federal court on a criminal complaint charging them with conspiracy and possession of methamphetamine with intent to distribute. All three remain in federal custody pending detention hearings scheduled for June 10, 2013.
Reynaga, Alire and Lopez-Hernandez were arrested yesterday by the FBI after they attempted to sell approximately 15 pounds of methamphetamine to an undercover officer. According to the criminal complaint, the FBI arrested Reynaga in the vicinity of the Hard Rock Casino, located on Isleta Pueblo, N.M., and seized the methamphetamine from the vehicle in which Reynaga had traveled to the Casino. The complaint further alleges that Alire and Lopez-Hernandez were arrested after additional investigation revealed that they allegedly supplied the methamphetamine that Reynaga was planning to sell to the undercover officer. Alire also was arrested in the vicinity of the Hard Rock Casino and Lopez-Hernandez was arrested in Albuquerque.
If convicted on the charges in the complaint, each of the three defendants faces a mandatory minimum of ten years to a maximum of life in prison and Lopez-Hernandez will be deported after serving his prison sentence. Charges in criminal complaints are only accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque Division of the FBI with assistance from the Las Cruces-Doña Ana Metro Narcotics Agency, and is being prosecuted by Assistant U.S. Attorney Samuel A. Hurtado.U.S. Attorney Joins FTC and Florida Attorney General to Spotlight Telemarketing Schemes Aimed at Defrauding Time-Share Unit OwnersRead the Press Release
Sixty-nine defendants charged to date by USAO on timeshare resale telemarketing fraud
At a press conference held in Miami today, Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Darin M. Didier, Acting Supervisory Special Agent, Federal Bureau of Investigation (FBI), Miami Field Office, and Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service, Miami Field Office, joined Charles A. Harwood, Acting Director, Federal Trade Commission’s (FTC) Bureau of Consumer Protection, Florida Attorney General Pam Bondi, and Jay Levenstein, Deputy Commissioner, Florida Department of Agriculture and Consumer Services, to highlight to their respective offices’ efforts in combatting timeshare property resale fraud in Florida and around the country.
According to the FTC, 191 actions were brought by the FTC and its law enforcement partners around the nation. Of these actions, the U.S. Attorney’s Office for the Southern District of Florida claimed 18 criminal cases, charging a total of 69 defendants, between 2011and 2013.
U.S. Attorney Wifredo A. Ferrer, focusing his remarks on Florida, stated, “We cannot allow our elderly and vulnerable real property owners to continue to be the target of fraud schemes. For that reason, our respective offices – federal and state, criminal and civil – have joined forces to combat Florida-based fraud schemes victimizing timeshare unit owners across the country. These victims, many of them elderly or in financial distress, looked to sell their units to help make ends meet or pay other bills. Instead, they were defrauded out of more than $14 million in total. Such fraud will not be tolerated.”
According to Charles A. Harwood, Acting Director of the Federal Trade Commission’s Bureau of Consumer Protection, “Timeshare resale scammers have cheated tens of thousands of timeshare owners out of tens of millions of dollars by convincing them to pay for a false promise. But law enforcement at virtually every level of government is working together to put an end to the problem.”
“We will continue to pursue scam artists who attempt to essentially steal from timeshare owners, and the Timeshare Resale Accountability Act that I worked with the Legislature on in 2012 is already having a great effect on ending this type of fraud. With strong partnerships among federal, state and local leaders, we will continue to protect Floridians,” stated Florida Attorney General Pam Bondi.
“If you think you are the victim of a timeshare scam, file a complaint with your state attorney general’s office and the Internet Crime Complaint Center,” said Darin M. Didier, acting Supervisory Special Agent assigned to FBI Miami Division. “To avoid becoming a victim of this type of crime take a few prudent steps such as; do not agree to anything on the phone or online until you have had a chance to check out the reseller, get all information in writing, verify that the reseller’s agents are properly licensed and ask about fees and timing. Go to the FBI’s and FTC’s websites for more important tips.”
Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service, Miami Field Office, stated “The timeshare resale fraudsters sound legitimate and convincing, but put pressure on victims to make decisions quickly. Hopefully the arrests of these fraudsters and dismantling of their criminal organizations will bring light to this rising fraud and educate the community. Our goal is to stop the crime and educate community members on these scams so they don’t become victims.”
“These scam artists defrauded consumers in Florida and across the country out of millions of dollars, often through illegal telemarketing,” said Commissioner of Agriculture Adam H. Putnam. “We’re proud to partner with other state and federal officials to protect consumers from further harm and bring justice to those who have violated the law.”
Among the criminal cases recently prosecuted by the U.S. Attorney’s office are the following:
1. U.S. v. Pappalardo et al.,, 13-60049-CR-Dimitrouleas (15 defendants charged) 2. U.S. v. Faraguna et al.,11-60247-CR-Marra (13 defendants charged) 4. U.S. v. Davis, 11-60268-CR-Hurley (1 defendant charged) 5. U.S. v. Friedman et al., 12-60019-CR-Scola (4 defendants charged) 6. U.S. v. Spinelli et al., 12-60149-CR-Scola (5 defendants charged) 7. U.S. v. Crapella and Walker, 12-mj-6114-Rosenbaum (2 defendants chargedThese seven cases charge a total of 41 defendants with various counts, including conspiracy to commit mail fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering.
According to the charging documents and other documents filed with the court, Timeshare Mega Media and Marketing Group, Inc. (TMMMG) was a timeshare telemarketing room that operated in Fort Lauderdale, Florida, from July 2009 through May 2010. According to the allegations in the indictment, the defendants conspired to unlawfully enrich themselves by making false representations over the telephone to individuals who were trying to sell their time-share units. Among the false statements, the defendants would tell customers, most of who lived outside of the State of Florida, that the defendants had successfully sold their time-share unit and asked the customer to pay a fee to finalize the sale, which fee would purportedly be refunded at closing. This fee ranged from at least $1,996 to as much as $10,000. In fact, however, there were no buyers for their units, and the defendants kept the victims’ money for their personal use. During the ten months that TMMMG was in business, it fraudulently induced more than 2,000 victims to send approximately $5,000,000 to TMMMG.
Among the 41 defendants are the owners of TMMMG, Pasquale Pappalardo and Joseph Crapella, 33 top salespeople, and 6 others who handled customer service, verification, leads, payroll and other vital functions for TMMMG. To date, 23 of the 41 defendants charged in these 7 related cases have pled guilty and have received sentences ranging from 5 years to 3 months in prison, 6 defendants have pled guilty and are awaiting sentencing, 2 defendants are fugitives, 1 defendant is deceased, and the remaining 9 defendants are pending trial. If convicted, the defendants face a maximum statutory sentence of up to 20 years in prison on each count of conspiracies to commit mail fraud, wire fraud, and money laundering. This series of cases is being prosecuted by Assistant U.S. Attorney Jeffrey Kaplan.
In addition to the cases identified above, the Northern Division of the United States Attorney’s Office prosecuted 11 cases, which charged a total of 28 defendants with various counts, including conspiracy to commit mail fraud and conspiracy to commit wire fraud. These 11 cases involved two timeshare fraud rings which operated in Palm Beach County, but solicited victims throughout the United States. The defendants would typically operate a company for 4 to 10 months, and then, to avoid detection by law enforcement, close the company and reopen under a new name. The new company would operate in the same fashion as the original company with many of the same owners, managers and salespeople.
The first ring involved 6 companies which solicited approximately $7 million in advance fees from approximately 3,000 timeshare owners. The second ring involved 7 companies which solicited approximately $2.7 million from approximately 1,200 timeshare owners. According to the charging documents and other documents filed with the court, both rings involved essentially the same scheme. Defendants in these cases cold called timeshare owners and made false representations to induce them to pay advance fees for purported timeshare marketing and sales services. Among the false statements, the defendants would tell customers that the companies had successfully sold or would sell their timeshare units, that the companies would handle the appraisals, title searches, closings, and other services associated with the sales, and that the companies would use the advance fees to cover the necessary costs associated with the sales. In truth, the defendants never located a single buyer, never completed a single sale of a timeshare unit, and never used the advance fees for anything other than their own personal benefit.
Among the 28 defendants prosecuted in connection with these 2 rings were the company owners, managers, top salespeople, and an individual who allowed one of the companies to use his merchant account to process victim credit card payments. To date, 18 of the 28 defendants charged in these 11 cases have pled guilty and received sentences ranging from 6 months to 151 months, 5 defendants have pled guilty and are awaiting sentencing, 4 defendants are scheduled to plead guilty, and 1 is a fugitive. The defendants in these cases face a maximum statutory sentence of up to 20 years in prison on each conspiracy count. These cases are being prosecuted by Assistant U.S. Attorneys Adrienne Rabinowitz and Kerry Baron.
A complete list of the cases prosecuted by the United States Attorney’s Office for the Southern District of Florida is attached.
Mr. Ferrer commended the investigative efforts of the FBI and U.S. Postal Inspection Service in the criminal cases. Mr. Ferrer also recognized the invaluable support and assistance provided by the FTC during these investigations.
Attachment:
List of Cases (PDF)
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.
Two Western Washington Men Plead Guilty to Child Pornography Offenses in Separate ProsecutionsRead the Press Release
Two men, who reside in Western Washington, pleaded guilty today in U.S. District Court in Seattle to child pornography related offenses, announced U.S. Attorney Jenny A. Durkan. Both men, 53-year-old CHARLES GLENN PERKINS of Burien and 29-year-old CONOR RYAN KELLY BRODERICK, of Anacortes, have prior convictions for sex offenses. PERKINS will be sentenced by U.S. District Judge Ricardo S. Martinez for receipt of child pornography on September 12, 2013. BRODERICK will be sentenced for possession of child pornography by U.S. District Judge Thomas S. Zilly on September 12, 2013. Both men remain in custody.
According to records filed in the case, BRODERICK was arrested November 3, 2012 by Anacortes Police after a stalking incident. The stalking followed a report to police by two different women claiming BRODERICK was threatening to post nude pictures of them on the internet unless they sent him additional pictures. While incarcerated, BRODERICK called an acquaintance and told the person to remove a memory card from his computer. Investigators who had been monitoring the jail calls, obtained a search warrant and ultimately determined the memory card and other media storage devices contained more than 100 images of child pornography. Later, while released on bail, BRODERICK entered into a “sexting” relationship with a girl in Kentucky who identified herself as a 14-years-old. BRODERICK has these prior convictions: Rape of a Child in the Third Degree (three counts), in Skagit County (2007) and Dealing in Depictions of Minors Engaged in Sexually Explicit Activity (two counts), in Skagit County (2007). BRODERICK faces a mandatory minimum ten years in prison.
In the second child pornography case, PERKINS was identified by law enforcement in the current case when he tried to enter Canada on December 29, 2012 and was denied entry due to his prior convictions for sex offenses. PERKINS is a registered sex offender in Washington State having previously been convicted of child molestation offenses in Kitsap County in 1987 and 1990. The Canadian Border agents sent PERKINS’s laptop for screening and investigators noted two pictures of nude children. Agents from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations obtained a search warrant for PERKINS’s Burien residence. A review of his digital media revealed that he had received and possessed approximately 610 images and 10 videos of minors engaged in sexually explicit conduct. Because of his prior convictions PERKINS faces a mandatory minimum 15 years in prison.
Both men were prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Both cases are being prosecuted by Assistant United States Attorney Jerrod Patterson. Mr. Patterson serves as the Project Safe Childhood coordinator for the U.S. Attorney’s Office. Investigators from U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Anacortes Police Department investigated these cases.
Two Plead Guilty in Child Sex-Trafficking CaseRead the Press Release
FORT WORTH, Texas — Deundrea R. Miller, 27, appeared in federal court yesterday, before U.S. Magistrate Judge Jeffrey L. Cureton, and pleaded guilty to a superseding information charging conspiracy to commit sex trafficking of a minor. Co-defendant Brittanie S. Brattain, 22, pleaded guilty on May 1, 2013, to the same offense. Each defendant faces a maximum statutory penalty of life in prison and a $250,000 fine. U.S. District Judge Terry R. Means is scheduled to sentence Miller on November 12, 2013, and Brattain on October 15, 2013; both defendants remain in custody. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Prior to September 2012, Brattain had a relationship with Miller. In late September or early October 2012, Brattain and Miller met Jane Doe. They agreed to take pictures of Jane Doe to post advertisements for “dates” on Back Page that would be used for commercial sex acts. Brattain and Miller used a cell phone to take the pictures and post the advertisements.
Some of the commercial sex acts involving Jane Doe occurred in motels in East Fort Worth. After the commercial sex acts, Jane Doe would give the money she received to Miller. Miller and Brattain harbored and maintained Jane Doe while they stayed in these motels.
In January 2013, Miller and Brattain rented a duplex in Fort Worth where commercial sex acts involving Jane Doe also occurred. Also in January 2013, Miller and Brattain posted “escort” advertisements involving Jane Doe. While Jane Doe stayed with Miller and Brattain, Miller and Brattain received financial benefit from her participation in commercial sex acts, all in reckless disregard that Jane Doe was under age 18.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and other members of the North Texas Anti-Trafficking Team, including the Arlington, Fort Worth and Dallas Police Departments, the Texas Department of Public Safety and the Texas Attorney General’s Office. Assistant U.S. Attorney Aisha Saleem is in charge of the prosecution.
Two from Sioux Falls Charged with Obstruction of Justice and False StatementRead the Press Release
United States Attorney Brendan V. Johnson announced that two people from Sioux Falls, South Dakota have been indicted by a federal grand jury for Obstruction of Justice and False Statement. These indictments are related to the Operation Black Widow case, where ten individuals were arrested and indicted in federal court in May as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Lynn Barbara Van Laar, age 64, and Randall Ray Jurgens, a/k/a “Jughead” age 53, were indicted on June 4, 2013. Van Laar made her intial court appearance on June 4, and Jurgens on June 5. Both appeared before U.S. Magistrate Judge John E. Simko and pled not guilty to the charges.
The maximum penalty upon conviction for Obstruction of Justice is up to 20 years in custody and/or a $250,000 fine; 3 years of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered. The maximum penalty upon conviction for the False Statement charge is up to 5 years in custody and/or a $250,000 fine; 3 years of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
On or about between April 26, 2013 and May 9, 2013, Van Laar and Jurgens allegedly obstructed a federal criminal investigation. Additionally they both told a Federal Bureau of Investigation Special Agent that they did not disclose any information regarding an ongoing federal criminal investigation. Also, Van Laar claimed she did not review any documents related to the investigation.
The charges are merely accusations and Van Laar and Jurgens are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. First Assistant U.S. Attorney Randy Seiler is prosecuting the case.
Both were released with conditions pending trial.
Two Cibola County Men Plead Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Anthony Lusk, 24, of San Rafael, N.M., and Peter Valdez, 26, of Grants, N.M., pleaded guilty this morning to federal methamphetamine trafficking charges under plea agreements with the U.S. Attorney’s Office.
Lusk and Valdez were two of the 13 Cibola County, N.M., residents charged with drug trafficking and firearms offenses as a result of a 22-month multi-agency investigation into drug trafficking in Cibola County, which was led by the DEA and the New Mexico State Police with assistance from the Grants Police Department. The investigation, which was code-named “Operation Ice Cave” and concluded with an arrest operation on March 5, 2013, was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. Eight of the 13 defendants were charged with federal drug trafficking and firearms charges and the remaining five were charged with state drug trafficking charges.
Lusk and Valdez were arrested on March 5, 2013, based on a two-count federal indictment charging them with (1) conspiracy to distribute methamphetamine, and (2) distribution of methamphetamine. During this morning’s plea hearings, Lusk and Valdez each entered a guilty plea to Count 1 of the indictment, the conspiracy count.
In his plea agreement, Lusk admitted that on Oct. 3, 2012, he negotiated a three ounce methamphetamine transaction with an individual who turned out to be an undercover officer. In his plea agreement, Valdez admitted that on Oct. 3, 2012, he assisted Lusk in packaging the three ounces of methamphetamine that Lusk agreed to sell to the undercover officer. Valdez also admitted that he delivered the three ounces of methamphetamine to the undercover officer in exchange for $4,050. Both men acknowledged that the methamphetamine transaction took place in the vicinity of the Sky City Casino, which is located in Cibola County.
Lusk and Valdez are in federal custody pending their sentencing hearings, which have yet to be scheduled. At sentencing, each man faces a maximum sentence of life in prison.
Paul Barker, 46, and Leena Martinez, 31, and Nestor Valdez, 49, of San Rafael, were charged with violating the federal narcotics laws. Martinez and Nestor Valdez were arrested on March 5, 2013, and remain in federal custody. Martinez and Nestor Valdez each entered a not guilty plea and each is scheduled for change for plea hearings next week. Barker has yet to be arrested and is considered a fugitive.
Adrian O. Leyva-Villalobos, 41, is a Mexican national who was residing in San Rafael when he was arrested on a federal firearms charge on March 5, 2013. Leyva-Villalobos has entered a not guilty plea and is scheduled for a change of plea hearing next week.
Rachel Basurto, 52, of Grants, who was arrested on federal drug trafficking charges, and Alberto Lujan-Ruiz, 50, a Mexican national who were residing in San Rafael, who was arrested on a federal firearms charge, have entered not guilty pleas and are pending trial.
The charges against the defendants who have not entered guilty pleas are merely accusations and the defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
These federal cases were investigated by the DEA and the New Mexico State Police with assistance from the Grants Police Department and are being prosecuted by Assistant U.S. Attorney Joel R. Meyers and Shammara H. Henderson.
Two Charged with Witness Tampering in Joint Woonsocket Police, DEA InvestigationRead the Press Release
PROVIDENCE, R.I. – Joshua Rojas, a/k/a Joshua Ramos, 19, of Woonsocket, and Victor Burgos, a/k/a Fat Boy, 20, of Providence, have been charged in federal court in Providence with witness tampering in connection with a joint Woonsocket Police Department and Drug Enforcement Administration (DEA) investigation into the alleged trafficking of Fentanyl Acetyl analogue, a Schedule 1 controlled substance.
In addition, Burgos has been charged with one count each of possession with the intent to distribute Fentanyl Acetyl analogue and distribution of Fentanyl Acetyl analogue.The charges were announced by United States Attorney Peter F. Neronha, Woonsocket Police Chief Thomas S. Carey and John J. Arvanitis, Special Agent in Charge of the DEA’s New England Field Division.
According to information presented to the court, it is alleged that Rojas and Burgos took threatening actions and made threatening remarks in an effort to intimidate a person cooperating with law enforcement in an investigation into the alleged trafficking of Fentanyl Acetyl analogue.
Burgos, who has been detained for violating terms of his release on a federal criminal complaint issued on May 17, 2013, charging him with distribution and possession with the intent to distribute Fentanyl Acetyl analogue, was charged by way of a federal grand jury indictment returned on June 5, 2013, with one count each of use of threat of physical force against a person with the intent to influence, delay or prevent the testimony any person in an official proceeding; distribution of Fentanyl Acetyl analogue; and possession with the intent to distribute Fentanyl Acetyl analogue.
Burgos is scheduled to be arraigned on June 11, 2013. If convicted, Burgos faces a maximum sentence of up to 20 years in federal prison on each charge.
Rojas, who was charged by way of a federal criminal complaint on June 4, 2013, with one count of intentionally harassing another person and thereby attempting to hinder, delay, prevent or dissuade any person from attending or testifying in an official proceeding, was ordered detained following an initial appearance before U.S. District Court Magistrate Judge Patricia A. Sullivan.
If convicted, Rojas faces a maximum sentence of up to 3 years in federal prison.
An indictment and a criminal complaint are merely allegations and are 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.
The cases are being prosecuted by Assistant U.S. Attorney Pamela E. Chin.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/Contact: 401-709-5357
[email protected]Three Georgia Residents Sentenced for Their Roles in Bribery Scheme Related to the Award of Government ContractsRead the Press Release
A former employee at the Marine Corps Logistics Base Albany (MCLB-Albany) and two local businessmen were sentenced today for their roles in a bribery scheme related to the award of contracts for machine products that resulted in approximately $907,000 in fraudulent overcharges to the U.S. Marines, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia.
Michelle Rodriguez, 32; Thomas J. Cole, 43; and Fredrick W. Simon, 55, all of Albany, Ga., were sentenced today by U.S. District Judge W. Louis Sands in the Middle District of Georgia. Rodriguez was sentenced to 70 months in prison and ordered to pay $161,000 in restitution; Cole was sentenced to 46 months in prison and ordered to pay $209,000 in restitution; and Simon was sentenced to 32 months in prison and ordered to pay $74,500 in restitution. Each is also subject to a $907,000 restitution order and three years of supervised release.
During her guilty plea in February 2013, Rodriguez, a supply technician in the Maintenance Center Albany (MCA), admitted to participating in a scheme to award contracts for machine products to Company A and Company B, companies operated by Cole and Simon. Cole and Simon pleaded guilty to bribery charges related to the same scheme in January 2013 and cooperated with the government’s criminal investigation. The MCA is responsible for rebuilding and repairing ground combat and combat support equipment, much of which has been utilized in military missions in Afghanistan and Iraq, as well as other parts of the world. To accomplish the scheme, Rodriguez would transmit bid solicitations to Simon via facsimile or email, and then usually follow that communication with a text message specifying how much Company A should bid. Simon, on Company A’s behalf, and with Cole’s knowledge, bid the amount specified by Rodriguez on each order, which was normally in excess of fair market value. Rodriguez was then paid $75 in cash for each order awarded to Simon and Cole during the previous week. According to court records, during the relevant period Rodriguez awarded Cole and Simon’s companies nearly 1,300 machine product orders, all of which were in exchange for bribes paid to Rodriguez.
Rodriguez further admitted that in 2011, she began routing some orders through a second company, Company B, owned by Cole, because the volume of orders MCA placed with the first company was so high. Company A, however, continued to perform the required services. Court records state that Rodriguez received approximately $161,000 in bribes during the nearly two-year scheme, while Cole and Simon personally received $209,000 and $74,500, respectively. Court records also indicate that the total loss to the U.S. Marines from overcharges associated with the machine product orders placed during the scheme was approximately $907,000.
The case was investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit and the Defense Criminal Investigative Service. The case was prosecuted by Trial Attorneys Richard B. Evans and J.P. Cooney of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia.
Three Georgia Residents Sentenced for Their Roles in Bribery Scheme Related to the Award of Government ContractsRead the Press Release
WASHINGTON – A former employee at the Marine Corps Logistics Base Albany (MCLB-Albany) and two local businessmen were sentenced today for their roles in a bribery scheme related to the award of contracts for machine products that resulted in approximately $907,000 in fraudulent overcharges to the U.S. Marines, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia.Michelle Rodriguez, 32; Thomas J. Cole, 43; and Fredrick W. Simon, 55, all of Albany, Ga., were sentenced today by U.S. District Judge W. Louis Sands in the Middle District of Georgia. Rodriguez was sentenced to 70 months in prison and ordered to pay $161,000 in restitution; Cole was sentenced to 46 months in prison and ordered to pay $209,000 in restitution; and Simon was sentenced to 32 months in prison and ordered to pay $74,500 in restitution. Each is also subject to a $907,000 forfeiture order and three years of supervised release.
During her guilty plea in February 2013, Rodriguez, a supply technician in the Maintenance Center Albany (MCA), admitted to participating in a scheme to award contracts for machine products to Company A and Company B, companies operated by Cole and Simon. Cole and Simon pleaded guilty to bribery charges related to the same scheme in January 2013 and cooperated with the government’s criminal investigation. The MCA is responsible for rebuilding and repairing ground combat and combat support equipment, much of which has been utilized in military missions in Afghanistan and Iraq, as well as other parts of the world. To accomplish the scheme, Rodriguez would transmit bid solicitations to Simon via facsimile or email, and then usually follow that communication with a text message specifying how much Company A should bid. Simon, on Company A’s behalf, and with Cole’s knowledge, bid the amount specified by Rodriguez on each order, which was normally in excess of fair market value. Rodriguez was then paid $75 in cash for each order awarded to Simon and Cole during the previous week. According to court records, during the relevant period Rodriguez awarded Cole and Simon’s companies nearly 1,300 machine product orders, all of which were in exchange for bribes paid to Rodriguez.
Rodriguez further admitted that in 2011, she began routing some orders through a second company, Company B, owned by Cole, because the volume of orders MCA placed with the first company was so high. Company A, however, continued to perform the required services. Court records state that Rodriguez received approximately $161,000 in bribes during the nearly two-year scheme, while Cole and Simon personally received $209,000 and $74,500, respectively. Court records also indicate that the total loss to the U.S. Marines from overcharges associated with the machine product orders placed during the scheme was approximately $907,000.
The case was investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit and the Defense Criminal Investigative Service. The case was prosecuted by Trial Attorneys Richard B. Evans and J.P. Cooney of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia.
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Testech and Ceso Agree to Pay $2.88 Million to Resolve False Claims Act AllegationsRead the Press Release
The Justice Department announced today that a number of related entities and individuals agreed to pay $2,883,947 to resolve allegations that they falsely claimed disadvantaged business status on a number of federally-funded transportation projects. These entities are Dayton-based TesTech, Inc. and its owner, Sherif Aziz, and Dayton-based CESO Testing Technology, Inc., CESO International, LLC, and CESO, Inc. (collectively CESO), and their owners, David and Shery Oakes.
“The Disadvantaged Business Enterprises program helps businesses owned by minorities and women work on federal transportation projects,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the Department of Justice. “Those who falsely claim credits under the program to obtain federal funds victimize both the businesses that the program is designed to assist and the American taxpayer.”
The Department of Transportation’s Disadvantaged Business Enterprise (DBE) program encourages the use of woman- and minority-owned businesses on federally-funded transportation projects. Contractors on such projects must make good-faith attempts to meet DBE participation goals as a condition of federal funding.
"DBE fraud harms the integrity of the program and adversely impacts law-abiding, small business contractors trying to compete on a level playing field,” said Michelle McVicker, regional Special Agent-in-Charge of the DOT’s Office of Inspector General. “Working with our Federal, State, and local law enforcement and prosecutorial colleagues, we will vigorously pursue those who violate the law, and expose and shut down fraud schemes that adversely affect public trust and DOT-assisted airport and highway programs.”
The settlement announced today resolves allegations that the defendants claimed DBE status for TesTech, a civil engineering firm, on numerous highway and airport construction projects in Ohio, Indiana, Michigan, and Kentucky. The United States alleged that TesTech was owned and controlled by CESO, a non-DBE firm, and its owners, the Oakes, who falsely claimed that TesTech was owned by Aziz and qualified as a minority-owned business in order to take advantage of the DBE program.
"The message is that we will work to uphold the integrity of the Disadvantaged Business Enterprise (DBE) and similar programs," US Attorney Carter Stewart said. “Those who attempt to defraud the system will be held accountable.”
The allegations resolved by today’s settlement were initially alleged in a whistleblower lawsuit filed under the False Claims Act by Ryan Parker, a former employee of TesTech. Under the False Claims Act, private citizens can sue on behalf of the United States and share in the recovery. Mr. Parker will receive $562,370 of the settlement amount.
This case was handled by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Southern District of Ohio, and the Department of Transportation Office of Inspector General.
The False Claims Act suit was filed in the United States District Court for the Southern District of Ohio, and is captioned United States ex rel. Parker v. TesTech et al., No. 2:10-cv-1028 (S.D. Ohio). The claims settled in this case are allegations only; there has been no determination of liability.
Sugar Land Woman Sentenced in Mortgage Fraud SchemeRead the Press Release
HOUSTON – Rain Joakim-Anwa Davis, aka Jeri Lynn Hardin, 50, has been handed a 33-month federal sentence following her conviction on two counts of wire fraud, United States Attorney Kenneth Magidson announced today. Davis pleaded guilty Jan. 22, 2013.
Davis was indicted in September 2012 along with co-defendant Sarah Michelle Black. They were accused of perpetrating a scheme to defraud lenders of mortgage loans, by means of false and fraudulent information and claims made in connection with mortgage loan applications.
Specifically, Davis admitted she purchased two residential properties - one in Dallas and one in Houston. Loan funds from bank accounts of lenders were then transmitted in interstate commerce, through the Federal Reserve Bank of New York, by means of a wire communication into the bank accounts of the title companies.
As was true of most of the other loans that were part of this scheme, only the first few monthly mortgage payments were made, and the mortgage loans went into default for non-payment. More than $1.5 million in fraudulent loans were obtained as part of this mortgage fraud scheme.
U.S. District Judge David Hittner sentenced Davis today to 33 months on each count of conviction to run concurrently. Following her release from prison, she will also be required to serve three years on supervised release. The court further ordered restitution in the amount of $240,152.79.
Black also pleaded guilty in relation to this scheme and will be sentenced June 17, 2013.
The investigation leading to the charges in this case was conducted by the FBI. Assistant United States Attorney Carolyn Ferko prosecuted the case.
Steven Patrick Garcia, Jr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on June 6, 2013, before U.S. District Judge Sam E. Haddon, STEVEN PATRICK GARCIA, JR., a 36-year-old resident of San Jose, California, appeared for sentencing. GARCIA was sentenced to a term of:
Prison: 24 months
Special Assessment: $200
Restitution: to be determined
Supervised Release: 3 years
GARCIA was sentenced in connection with his guilty plea to trafficking in eagle/hawk feathers.
In an Offer of Proof filed by Georgiann G. Cerese, Senior Trial Attorney for the United States Department of Justice, Environmental Crimes Section, and Assistant U.S. Attorney Mark S. Smith, the government stated it would have proved at trial the following:
GARCIA maintained an account with MySpace beginning in early 2006. In November and December 2008, GARCIA communicated with an individual in California via MySpace, and later sold the individual hawk feathers for $200 and a golden eagle feather for $25. Within a November 30, 2008 MySpace message, GARCIA provided a P.O. Box in Lame Deer as the location to send payment for these feathers.
Western Union records show a $225 payment from the California purchaser to GARCIA on December 1, 2008. GARCIA provided the tracking number for the package of feathers in a MySpace message on December 2, 2008. The California purchaser was interviewed by a U.S. Fish & Wildlife Service Special Agent, and voluntarily abandoned the hawk feathers sold by GARCIA. The hawk feathers were forensically identified as twelve tail feathers of either ferruginous hawk or red-tailed hawk.
In January 2009, an undercover Fish & Wildlife Service Special Agent ("SA") sent GARCIA a MySpace friend request. GARCIA responded, ". . . When you add me, check out what I have in stock now. . ." The SA observed approximately seventy photographs of migratory birds on GARCIA's MySpace. Most of the feathers were un-worked tail feathers and included feathers of bald eagles, golden eagles, ferruginous hawks, rough-legged hawks and northern flickers.
On January 27, 2009, the SA inquired with GARCIA about a rough-legged hawk tail and a bald eagle tail on GARCIA's MySpace page. GARCIA replied that the "bald is gone" and gave a price of $100 for the rough-legged hawk.
On January 28, 2009, the SA asked if GARCIA had any other bald eagle tails available and asked about prices for hawks. GARCIA provided prices for ferruginous and rough-legged hawk tails, and said that "BE tails or wings are on there [sic] way." The SA wrote that he wanted to purchase "ferruginous tail number 2 for 150" and "winterhawk tail number 8 for 100." Rough-legged hawks are commonly called winterhawks. GARCIA agreed to sell the two hawk tails for $250 and suggested that they "wait till I get a baldie in before I take any funds . . . I have one now just haven't cleaned it up yet . . . SO I'll let you know by this weekend so I can clean it and see if it's worthy of selling . . ." GARCIA wrote "My assasins [sic] thank you. They are using the money to pay for graduation stuff and what not . . ." The SA mailed a money order to GARCIA in Lame Deer on January 30, 2009. On February 7, 2009, the SA received twelve ferruginous hawk and twelve rough-legged hawk tail feathers.
On February 18, 2009, GARCIA made the following offers to sell to the SA: "the first set of golden wings is 400," "the all white tail 350," "the bald set of wings is 300. . ." GARCIA also stated ". . . [t]he winter season is over so the birds will not be coming in to [sic] regularly . . . everyone is holding on to the secret stash box to charge high prices this pow wow season . . ." The SA replied that he would take the "first set of golden wings" for $400. On February 18, 2009, GARCIA stated that he "just made a call to my assasins [sic] from up north and they are going to see what they can find for me . . ." GARCIA provided his P.O. Box number in Lame Deer, and the SA mailed a money order to GARCIA on February 19, 2009.
On February 28, 2009, the SA received golden eagle wing feathers (one set of two wings) which he had purchased from GARCIA for $400. The feathers were later forensically identified as wing feathers of a subadult golden eagle.
GARCIA was interviewed by U.S. Fish & Wildlife Service agents on March 11, 2009. During the interview, GARCIA acknowledged he could not legally possess feathers because he was not an enrolled member of a federally recognized tribe. GARCIA had known for fifteen years that it was illegal to sell, kill and buy eagles and other birds. GARCIA had known for the past five years that it was illegal to trade eagles and other birds.
The protection of Montana's wildlife, including migratory birds, is a priority of the U.S. Attorney's Office for the District of Montana. Today's prosecution and sentence demonstrate that individuals that attempt to profit from the unlawful taking of golden eagles, bald eagles, hawks, and all other migratory birds will be investigated, prosecuted, and punished accordingly." U.S. Attorney for the District of Montana, Michael W. Cotter.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that GARCIA will likely serve all of the time imposed by the court. In the federal system, GARCIA does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the U.S. Fish and Wildlife Service.
Stafford DME Owner Heads to Federal Prison for Health Care Fraud and Identity TheftRead the Press Release
HOUSTON – Abdul Waheed Alex Shittu, 55, a naturalized United States citizen from the Federal Republic of Nigeria, has been sentenced to 81 months in federal prison following his convictions of conspiracy to commit health care fraud and aggravated identity theft, United States Attorney Kenneth Magidson announced today.
Today, U.S. District Judge Keith P. Ellison, who accepted the guilty plea, handed Shittu a sentence of 57 months for conspiring to commit health care fraud and 24 months for aggravated identity theft which must be served consecutively for a total sentence of 81 months in federal prison. He was further ordered to pay $597,865.19 in restitution to Medicare and Medicaid.
Shittu, the owner of S & S Medical Supply Etc. located in Stafford, admitted during his re-arraignment on Nov. 14, 2012, that he billed Medicare and Medicaid for DME listed on purchased physician orders, even though he did not deliver all the DME and he delivered durable medical equipment (DME) to Medicare and Medicaid beneficiaries he knew did not want or need the supplies. Shittu also admitted he gave his billing agent the incorrect coding information so he would receive more money from Medicare and Medicaid for each DME claim. Between Dec. 1, 2008, and Sept. 30, 2009, Shittu submitted approximately $1,154,025 in fraudulent claims to Medicare and Medicaid and received $597,865.19 for those claims. The defendant also admitted that he began purchasing physician orders for durable medical equipment (DME), including wrist, back, foot, ankle, knee, elbow and shoulder braces as well as wheelchairs around Dec. 1, 2008, and that he purchased the orders from at least five recruiters for $200 - $300 per order. The physicians whose names were on the orders had not seen or treated by the patients.
After long oral argument from both sides today, Judge Ellison cited the seriousness of the crime as one of the reasons for arriving at the sentence. The United States introduced numerous photographs of DME delivered by Shittu to Medicare and Medicaid beneficiaries that was not medically necessary and which had sat unused for years after Shittu was paid for delivering it. The United States also referenced a chart of Medicare claims data demonstrating how his billing to Medicare dramatically increased when he began purchasing physician orders for $200 - $300 per prescription from recruiters in December 2008. The defense argued that Shittu should receive a lesser sentence because of the actual cost of purchasing the medically un-necessary DME and because he committed the crime due to a tough economic climate. Judge Ellison considered the defendant’s character references and lack of prior criminal history prior to issuing the sentence and concluded that the sentence reflected the seriousness of the crime.
Shittu was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation into Shittu was the result of a joint investigation conducted by agents from the Department of Health and Human Services-Office of Inspector General and the Texas Attorney General’s Office-Medicaid Fraud Control Unit. Assistant United States Attorney Julie Redlinger prosecuted the case.
St. Francis Woman Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota woman convicted of Involuntary Manslaughter was sentenced on June 3, 2013 by U.S. District Judge Roberto A. Lange.
Mary Jo Flammond, age 32, was sentenced to 48 months in custody, 2 years of supervised release, $7,160.48 in restitution and $100 to the Federal Crime Victims Fund.
Flammond was indicted by a federal grand jury on September 19, 2012 and pled guilty to the charge on February 21, 2013.
The conviction stems from an accident that took place on September 6, 2012, when Flammond was driving a motor vehicle under the influence of alcohol. Flammond was driving recklessly and could not keep the vehicle on the roadway which caused it to roll. The victim died from his injuries sustained in the crash. Flammond’s blood alcohol content at the time of the wreck was .191.
The investigation was conducted by the Federal Bureau of Investigation and Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Flammond was remanded to the custody of the U.S. Marshal.
Southern Illinois Resident Sentenced for Defrauding Federal Unemployment Insurance ProgramRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Cymica Grant, 35, of Belleville, Illinois, was sentenced in United States District Court for defrauding the unemployment insurance program. The District Court sentenced Grant to a 5 year term of probation. Grant also was ordered to pay restitution to the Illinois Department of Employment Security and to pay a $100 special assessment.
“Lying and cheating to receive unemployment compensation is a crime,” said United States Attorney Wigginton. “Those who defraud the unemployment insurance program undermine support for an important public program and hurt and insult every law-abiding citizen of Southern Illinois, particularly as public programs face economic crises. I will continue to place a high priority on pursuing those who steal from the United States Treasury.”
At the time of her guilty plea, Grant admitted to being employed both between July 2008 and June 2009 and also during January 2010 while at the same time filing for and receiving unemployment insurance benefits. In order to receive the benefits, Grant had to certify, approximately every two weeks, to the Illinois Department of Employment Security (IDES) that she was not working and that she was ready, willing, and able to work. She also had to verify that she was actively seeking work. Grant was supposed to inform IDES of any income she received during the certification period, but she did not report that she was employed and earning money, instead choosing to collect both wages and benefits simultaneously. Between July 2008 and January 2010, Grant collected $26,417 in employment insurance benefits to which she was not entitled.
This case was investigated by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, the United States Postal Inspection Service, and the Illinois Department of Employment Security, and was prosecuted by Special Assistant United States Attorney Katherine L. Lewis.
Sherron Grace American Horse Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on June 5, 2013, before U.S. District Judge Sam E. Haddon, SHERRON GRACE AMERICAN HORSE, a 38-year-old resident of Ashland and an enrolled member of the Northern Cheyenne Tribe, was sentenced to a term of:
Prison: 46 months
Special Assessment: $200
Supervised Release: 3 years
AMERICAN HORSE was sentenced in connection with his guilty plea to involuntary manslaughter and assault resulting in serious bodily injury.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On June 22, 2012, law enforcement responded to a car crash on the Northern Cheyenne Indian Reservation at approximately 1:00 p.m. The officers found one deceased passenger lying outside of the car. Several other passengers were also at the scene and suffered minor to severe injuries. All at the scene identified AMERICAN HORSE as the driver.
While taking photographs at the scene, the officers saw footprints leading away from the crash site and followed them. They found AMERICAN HORSE lying near the road. She appeared to be sleeping. The officers woke her up to determine if she needed medical attention. As she sat up, an unopened can of malt liquor was under her body. Her speech was slurred.
AMERICAN HORSE was taken by ambulance to the Lame Deer Clinic and later treated at the Billings Clinic. A blood alcohol sample was taken some hours after the crash and registered a .169.
AMERICAN HORSE was interviewed several days later. She admitted that she had been drinking and driving at the time of the crash. Through her admissions, the statements of the surviving passengers, and the investigation at the scene, law enforcement learned that AMERICAN HORSE was very drunk, lost control of the car, and rolled the car at least four times. She caused the death of one passenger and another passenger suffered a spinal injury that has resulted in partial paralysis.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that AMERICAN HORSE will likely serve all of the time imposed by the court. In the federal system, AMERICAN HORSE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Bureau of Indian Affairs and the Federal Bureau of Investigation.
Sevierville Attorney Receives Four Year Sentence for Wire and Bank Fraud Conspiracy and Money Laundering in $6 Million Mortgage Fraud SchemeRead the Press Release
KNOXVILLE, Tenn. - Jerry Kerley, 60, of Kodak, Tenn. was sentenced on June 6, 2013, by the Honorable Thomas W. Phillips, U.S. District Court Judge, to serve four years in prison for his May 2012 federal convictions for wire fraud, bank fraud, money laundering, all arising from a mortgage fraud scheme.
The indictment charged Kerley and Jeffrey Whaley with conspiring to defraud Citizens Bank, located in New Tazewell, Tenn., and SunTrust Mortgage, Inc., located in Richmond, Va., through a mortgage fraud scheme. The indictment alleged that the conspiracy involved a "straw borrower" mortgage fraud scheme in which straw borrowers were induced to obtain mortgage loans in their names based on promises that they would not have to make a down payment or mortgage payments for the property, would receive cash at closing, and would share in the profit following a resale of the property. The indictment further alleged that it was part of the conspiracy that materially false representations were made to Citizens Bank and SunTrust Mortgage, which, among other things, included false representations related to the straw borrowers’ source of funds for down payments and amounts recorded as "cash from borrower" on HUD-1 Settlement Statements and loan applications, for the purpose of inducing Citizens Bank and SunTrust Mortgage to disburse the mortgage loan proceeds it had wired to and entrusted with Kerley's title company Guaranty Land Title.
The indictment specifically alleged eight real estate transactions in which Kerley and Whaley concealed from Citizens Bank and SunTrust Mortgage that the borrower did not provide at closing the money identified as the "cash from borrower" on the HUD-1 Settlement Statement. According to the indictment, in those eight transactions, Citizens Bank and SunTrust Mortgage, in total, wired more than $6 million in loan proceeds to Guaranty Land Title Company for disbursement. The indictment alleged that Kerley, a Tennessee licensed attorney, was the owner of Guaranty Land Title Company where the fraudulent loans were closed. The indictment also alleged that Whaley conducted business through a company known as GBO Enterprises which received substantial sums of money from the loan proceeds. The indictment also alleged that Kerley and Whaley committed money laundering offenses through financial transactions that involved proceeds from the mortgage fraud scheme. Whaley is scheduled to be sentenced in U.S. District Court on July 1, 2013.
This investigation was conducted jointly by the Internal Revenue Service, Criminal Investigation, Federal Bureau of Investigation, and the United States Secret Service. Assistant U.S. Attorneys Trey Hamilton and Zac Bolitho represented the United States.
Sentences for June 05 - 06, 2013Read the Press Release
Robert Rodriguez, 44, of Albuquerque, New Mexico, was sentenced by Chief Federal District Court Nancy D. Freudenthal on June 6, 2013, on one count of conspiracy to commit mail and wire fraud and one count of arson and aiding and abetting. Rodriguez was arrested in Albuquerque, New Mexico. He received 60 months of imprisonment, followed by three years of supervised release and was ordered to pay a $200.00 special assessment and $50,000.00 in restitution. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Maria De Jesus Molinar-Varela, 37, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 6, 2013, for illegal re-entry of a previously deported alien into the United States. Molinar-Varela was arrested in Cheyenne, Wyoming. She received twelve months and one day of imprisonment, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Michael Pollock, 43, of West Point, Utah, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on June 5, 2013, for possession of child pornography. Pollock was arrested in Kemmerer, Wyoming. He received 30 months of imprisonment, to be followed by ten years of supervised release and was ordered to pay a $100.00 special assessment and a $250.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Seller of Golden Eagle and Hawk Feathers Sentenced to 2 Years in Prison for Violations of Migratory Bird Treaty Act and Lacey ActRead the Press Release
Steven Patrick Garcia, Jr., 36, of San Jose, Calif., was sentenced today in federal court in Billings, Mont., to 24 months in prison to be followed by one year of supervised release for selling and offering to sell migratory bird parts in violation of the Migratory Bird Treaty Act (MBTA) and the Lacey Act, the Department of Justice announced today. Garcia had pleaded guilty to the charge on January 16, 2013.
Garcia admitted by his plea that on Dec. 2, 2008, he offered for sale and sold golden eagle and hawk feathers and that on Feb. 25, 2009, he sold golden eagle feathers knowing that those golden eagle feathers were unlawfully taken and possessed.
“The protection of Montana's wildlife, including migratory birds, is a priority of the U.S. Attorney's Office for the District of Montana. Today's prosecution and sentence demonstrate that individuals that attempt to profit from the unlawful taking of golden eagles, bald eagles, hawks and all other migratory birds will be investigated, prosecuted and punished accordingly,” said U.S. Attorney for the District of Montana, Michael W. Cotter.
Pursuant to the MBTA, the Secretary of the Interior maintains a list of migratory birds which are protected from, among other things, being killed, sold, bartered, transported or possessed, except as otherwise permitted by federal regulation. Enrolled members of federally recognized American Indian tribes may obtain permits to possess eagle and other migratory bird feathers and parts for religious and ceremonial purposes, but federal law strictly prohibits the sale of migratory birds, feathers, or their parts by any person. The Lacey Act prohibits, among other things, the sale of wildlife knowing that the wildlife was taken or possessed in violation of any federal wildlife-related regulation or law.
According to court documents, Garcia communicated via MySpace with an individual in California and sold the individual hawk feathers for $200 and a golden eagle feather for $25 in December 2008. The hawk feathers were later forensically identified as twelve tail feathers of either ferruginous or red-tailed hawk. Garcia also communicated via MySpace with an undercover U.S. Fish and Wildlife Service agent who, at one point in time, observed approximately seventy photographs of migratory bird feathers on Garcia’s MySpace Page. The agent purchased twelve ferruginous hawk and twelve rough-legged hawk tail feathers from Garcia in February 2009 as well as one complete set of subadult golden eagle wings for $400. Approximately 146 items containing feathers representing 18 different species of migratory birds were obtained from Garcia’s home in Lame Deer, Montana in March 2009.
This case resulted from a nationwide investigation by the U.S. Fish and Wildlife Service’s Office of Law Enforcement into the illegal commercialization of eagles and other migratory birds protected by federal law. The case was prosecuted by the Department of Justice’s Environment and Natural Resources Division, Environmental Crimes Section with assistance from the U.S. Attorney’s Office for the District of Montana.San Gabriel Valley Teacher Arrested in Child Pornography Case After Investigators Uncover Evidence of Possible Child MolestationRead the Press Release
LOS ANGELES – A teacher at Royal Oak Middle School in Covina, who allegedly met an undercover operative in his classroom so they could view child pornography, has been arrested after investigators determined that he was distributing child pornography via the Internet.
John David Boyle, 49, of Glendora, was arrested yesterday by special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) after their investigation determined that Boyle may have molested children. Boyle, who is currently in custody, has a bond hearing scheduled for this afternoon.
During the course of this investigation, Boyle engaged in online chats with an undercover agent, believing that the undercover agent shared his sexual interest in young boys, according to the affidavit in support of the complaint. Boyle set up an in-person meeting with the undercover agent in his classroom at the school on Sunday, believing that the purpose of the meeting was to engage in sexual activity while watching child pornography together. When the undercover agent arrived and presented Boyle with child pornography, he took possession of it. At that time, other agents entered the classroom to interview Boyle.
While Boyle was not arrested at that time, he made statements to investigators and allowed them to takeover several of his online accounts, which included [email protected]. While working with that account late Sunday and Monday, agents discovered that Boyle had used the account to distribute child pornography, the complaint alleges. Agents were also able to access Boyle’s Skype account, where they found evidence that he may have had sexual contact with minors.
Agents obtained a search warrant for Boyle’s computer systems, and on Tuesday they discovered videos depicting child pornography. As a result of this investigation, Boyle was arrested Wednesday morning.
Based on the evidence obtained in this case, authorities believe there may be unknown victims of child molestation by Boyle. Anyone with information about this matter is encouraged to call HSI’s toll-free tip line at 1-866-DHS-2ICE (1-866-347-2423) or submit a information using HSI’s online tip form at http://www.ice.gov/exec/forms/hsi-tips/tips.asp.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The charge of distribution of child pornography carries a mandatory minimum penalty of five years in federal prison and a maximum possible penalty of 20 years in prison.
The investigation into Boyle is being conducted by HSI and the Internet Crimes Against Children Task Force (ICAC).
Release No. 13-078
Salt Lake Man Sentenced to 21 Months in Prison for Money Laundering in Connection with Diversion of Funds from BusinessRead the Press Release
Sentence Includes Order to Pay $986,073.03 in Restitution to Business
SALT LAKE CITY – David Merrill, age 42, of Salt Lake City will serve 21 months in federal prison after pleading guilty to money laundering in connection with a scheme to divert money from High Street Funding, where he worked from 2006 through 2011, to his personal accounts.
U.S. District Judge Robert J. Shelby also ordered Merrill to pay $986,073.03 in restitution to the business and imposed 36 months of supervised release following the completion of the prison sentence.
According to a Felony Information filed in the case, the business is a privately-owned equipment leasing company in Utah. It enters into equipment leasing agreements with client businesses, leasing equipment based on monthly payments.
As a part of a plea agreement with federal prosecutors, Merrill admitted that during the course of performing his job duties at the leasing business, he directed approximately $1 million in client payments to his accounts at various banks in Utah. He admitted the activity was unknown to his employer and done without the employer’s authorization.
The case was prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by special agents of IRS Criminal Investigation.
Rapid City Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota man convicted of Assaulting, Resisting, or Impeding a Federal Law Enforcement Officer was sentenced on June 3, 2013 by U.S. District Judge Roberto A. Lange.
Sidney Lightning Fire, age 30, was sentenced to 13 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Lightning Fire was indicted by a federal grand jury on October 16, 2012, and pled guilty to Assaulting, Resisting, or Impeding a Federal Officer on March 13, 2013. The conviction stems from Lightning Fire’s resisting arrest and the assault of two Cheyenne River Sioux Tribe Law Enforcement Officers in July of 2012.
The investigation was conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Division. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Lightning Fire was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
Rapid City Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota man convicted of Assaulting, Resisting, or Impeding a Federal Law Enforcement Officer was sentenced on June 3, 2013 by U.S. District Judge Roberto A. Lange.
Sidney Lightning Fire, age 30, was sentenced to 13 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Lightning Fire was indicted by a federal grand jury on October 16, 2012, and pled guilty to Assaulting, Resisting, or Impeding a Federal Officer on March 13, 2013. The conviction stems from Lightning Fire’s resisting arrest and the assault of two Cheyenne River Sioux Tribe Law Enforcement Officers in July of 2012.
The investigation was conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Division. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Lightning Fire was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
Punta Gorda Man Indicted for Investor FraudRead the Press Release
Fort Myers, Florida - United States Attorney Robert E. O'Neill announces the unsealing of an indictment charging Anthony Michael Defeo (48, Punta Gorda) with eight counts of wire fraud. If convicted, he faces a maximum penalty of 20 years in federal prison on each count, a fine of up to $250,000, and restitution to his victims. The indictment also notifies Defeo that the United States is seeking a money judgment in the amount of $6,280,580.00, the proceeds of the offense.
According to the indictment, Defeo solicited victim investors who thought they were investing in an opportunity involving road improvements on Interstate 75, along the west coast of Florida. Specifically, Defeo misrepresented to victim investors that he had lucrative contracts and purchase orders with a legitimate corporation engaged in asphalt paving, grading, and related services for roadway and civil construction projects. Instead of using the victim investors’ money as represented, Defeo used the investors’ money for his own purposes. The indictment alleges that Defeo fraudulently diverted and converted approximately $6,280,580.00 in monies from investors for his own purposes and has failed to repay these investors.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Pittsburgh Man to Spend 3 Years in Prison for Conspiring to Distribute CocaineRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh resident was sentenced in federal court on June 5, 2013, for violating federal narcotics trafficking laws, United States Attorney David J. Hickton announced today.
Donald Goodwine, 24, was sentenced by United States District Judge Maurice B. Cohill to 37 months in prison followed by three years of supervised release. From May 2, 2012, to May 9, 2012, Goodwine conspired to distribute and possess with intent to distribute cocaine in the Pittsburgh area.
Assistant United States Attorney Craig W. Haller prosecuted the case on behalf of the United States.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania State Police, and the Pittsburgh Bureau of Police for conducting the investigation that led to the conviction and sentence in this case.
Phoenix, New York - Man pled guilty to a felony violation of the Clean Air Act.Read the Press Release
Richard S. Hartunian, United States Attorney for the Northern District of New York, announced today that Edward Palmer, 47, of Phoenix, N.Y., pled guilty in U.S. District Court in Syracuse before the Honorable Frederick J. Scullin, to a felony violation of the Clean Air Act, 42 U.S.C. § 7413(c). Palmer is scheduled to be sentenced on October 30, 2013 at 10:30 a.m. in Syracuse. He faces a maximum penalty of five years in prison and a $250,000 fine.
Palmer is the owner of Carbonsted, LLC, a company that owns the former Nestles Plant, 555 Fourth Street, Fulton, NY. The plant contains pipes with more than two thousand of feet of friable asbestos insulation. Palmer engaged in asbestos renovation activities without filing a notification with the United States Environmental Protection Agency. He directed unlicenced individuals to perform asbestos removal without wetting the asbestos and keeping it wet, and without properly disposing of the asbestos at a state-approved landfill.
Asbestos exposure has been determined to cause various forms of cancer, asbestosis, and mesothelioma, a nearly always fatal disease. The Environmental Protection Agency has determined that there is no safe level of exposure to asbestos. This case was investigated by Special Agents of the Environmental Protection Agency, and N.Y. State Department of Environmental Conservation. Inspectors with the NYS Department of Labor also assisted. Prosecution is being handled by Assistant United States Attorney Craig A. Benedict. Mr. Benedict may be contacted for questions regarding this case at 315-448-0672.
Philadelphia Man Charged with Conspiracy to Commit Access Device FraudRead the Press Release
Carnell Ragan, 47, of Philadelphia, Pennsylvania, was charged today by Indictment with conspiracy to commit access device fraud and aggravated identity theft, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 12 years imprisonment, including a mandatory minimum of 2 years imprisonment.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Virgil B. Walker.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Nooksack Tribal Member Pleads Guilty to Ax Murder on Lummi ReservationRead the Press Release
An enrolled member of the Nooksack Tribe pleaded guilty today in U.S. District Court in Seattle to second degree murder, announced U.S. Attorney Jenny A. Durkan. LEVI EUGENE CHARLES, 26, admitted that he killed Sauk-Suiattle Tribal member Kenneth Joseph by striking him in the head and face with an ax. The murder occurred when 68-year-old Joseph awoke while CHARLES was burglarizing Joseph’s home on the Lummi reservation. Under the terms of the plea agreement, both sides will recommend a sentence between 22 and 27 years in prison when CHARLES is sentenced on August 2, 2013. U.S. District Judge Richard A. Jones is not bound by the recommendation and can impose any sentence up to the maximum allowed by law: a life prison term.
According to the plea agreement, CHARLES went to Joseph’s home the night of October 23, 2012. CHARLES knew Joseph and had been in the home. He admits he planned to break in and steal items to sell for cash. CHARLES picked up a miniature baseball bat outside the residence and carried it inside. Joseph heard the intruder and confronted him. CHARLES hit Joseph with the mini baseball bat multiple times and then grabbed an ax from near the front door of the house and hit the victim with that in the head and face. After killing Joseph, CHARLES threw a blanket over the body and hung blankets over the windows to conceal the crime scene. CHARLES stole an ATM card from Joseph’s wallet, and took a TV and other items from the house. CHARLES threw the small bat away in the woods and discarded the TV and other items at the end of the driveway. He used the ATM card a few hours later to take $420 from Joseph’s bank account.
CHARLES was arrested October 29, 2012 and was indicted December 19, 2012.
The case was investigated by the Lummi Police Department and the FBI. The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
New York Woman Pleads Guilty to Newtown Fundraising Fraud, Lying to Federal AgentsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that NOUEL ALBA, 37, of Bronx, N.Y., pleaded guilty today before United States Magistrate Judge William I. Garfinkel in Bridgeport to engaging in a fraudulent fundraising scheme related to the Sandy Hook Elementary School shooting tragedy, and lying to FBI agents investigating her conduct.
“This defendant’s criminal conduct exploited the victims of this tragedy, their grieving families and caring individuals who sought to help in any way they could,” stated Acting U.S. Attorney Daly. “As charity and fundraising scams prey upon vulnerable people and have a corrosive effect on the trust and generosity of all citizens, investigators will continue to monitor the Internet to uncover similar schemes. While we believe that this case has had a deterrent effect on other potential bad actors, individuals who ignore this warning and operate these schemes face federal or state prosecution to the fullest extent permitted by law.”
“The thought that someone would scheme so quickly and deliberately to benefit from an unspeakable tragedy is beyond belief,” stated FBI Special Agent in Charge Mertz. “While there wasn’t a substantial loss of money in this investigation, there were losses beyond any pecuniary measure. Ms. Alba’s actions caused undue sadness and harm to those already suffering and to those involved with running legitimate and caring charities. While her guilty plea is just, our thoughts today are with the victims of the Newtown tragedy and their families and friends.”
According to court documents and statements made in court, shortly after the shooting that claimed 26 lives at Sandy Hook Elementary School in Newtown on December 14, 2012, ALBA used Facebook, email, text messages and telephone calls to falsely claim to be the aunt of a child killed in the shooting, and to supply fictitious details about the aftermath of the shooting, in order to solicit donations on the pretext that she was collecting for a “funeral fund” on behalf of the child’s family and the families of other shooting victims. As part of the scheme, ALBA also emailed Sandy Hook Elementary School PTA officers and then touted her fictional personal relationship with the PTA to support her false claim and induce donors to send her money. At ALBA’s instruction, donor-victims sent money to her PayPal account.
When contacted by FBI special agents investigating fundraising and charity scams related to the shooting, ALBA attempted to hide her criminal conduct by falsely stating that she did not post information related to Newtown on her Facebook account, have contact with anyone about such postings, or recently access her PayPal account.
ALBA pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of making false statements, which carries a maximum term of imprisonment of five years. She is scheduled to be sentenced by United States District Judge Michael P. Shea in Hartford on August 29, 2013.
ALBA has been released on a $50,000 bond since her arrest on December 27, 2012.
Individuals with knowledge of fraudulent fundraising and charity schemes are encouraged to contact the FBI in Connecticut at 203-777-6311.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Jonathan Francis.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New York Woman Admits Purchasing Electronics with Counterfeit $100 Bills at North Haven StoreRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that ALISHA FRASER, 27, of Brooklyn, N.Y., pleaded guilty yesterday before United States Magistrate Judge Thomas P. Smith in Hartford to one count of passing counterfeit U.S. currency at a store in North Haven.
According to court documents and statements made in court, on December 13, 2010, FRASER used nine counterfeit $100 bills to purchase an iPad from a store in North Haven. Later that day, she returned the iPad and received genuine U.S. currency. Two days later, FRASER purchased two iPods at the same store using five $100 counterfeit bills.
FRASER is scheduled to be sentenced by United States District Judge Vanessa L. Bryant on August 28, 2013, at which time FRASER faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.
FRASER was arrested on February 25, 2013, and is currently released on a $25,000 bond.
This matter was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Felice Duffy.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Haven Man Sentenced to More Than Seven Years in Federal Prison for Distributing Oxycodone and CocaineRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOSEPH RAO, 53, of New Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 91 months of imprisonment, followed by five years of supervised release. On February 4, 2013, RAO pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute oxycodone and cocaine.
RAO is one of more than 100 individuals charged as a result of “Operation Bloodline,” a joint law enforcement investigation targeting narcotics trafficking and gang violence in the Dwight-Kensington and Fair Haven sections of New Haven. Led by the DEA New Haven Task Force and the New Haven and Hamden Police Departments, the year-long investigation included the use of court-authorized wiretaps on numerous telephones, extensive physical surveillance, controlled purchases of narcotics, execution of search warrants, and seizures of narcotics and firearms. The investigation revealed that RAO conspired with others to distribute oxycodone and cocaine.
RAO was arrested on federal charges on June 6, 2012. At that time, he was serving an effective state sentence of 60 months of imprisonment stemming from several arrests, including an arrest by the New Haven Police Department on April 1, 2011, after he conducted a sale of oxycodone in a restaurant parking lot. On that date, a search of RAO’s person and vehicle revealed $9,661 in U.S. currency and more than 100 oxycodone pills.
Judge Burns ordered that RAO begin serving his 91-month federal sentence after he completes his state sentence.
RAO’s criminal history includes 26 convictions.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. The United States Marshals Service, the Connecticut State Police, the Connecticut Department of Correction, Parole and Community Services and the Milford, Hartford, New Britain, North Branford and Stratford Police Departments have provided valuable assistance to the investigation.
This case is being prosecuted by Assistant United States Attorneys S. Dave Vatti and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Mission Woman Sentenced for TheftRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota woman convicted of theft was sentenced on June 3, 2013 by U.S. District Judge Roberto A. Lange.
Donna Peterson, age 49, was sentenced to serve 6 months of home confinement, 4 years’ probation, and ordered to pay a $2,000 fine, and over $32,000 in restitution.
Peterson was indicted by a federal grand jury on May 8, 2012 and pled guilty to the charge on March 18, 2013.
From 1996 to 2008, Peterson was an employee of Costello Company Property Management. During that time she served as manager of the Sunrise Village Apartment Complex, which was managed by Costello Company Property Management and located in Mission, South Dakota. The U.S. Department of Agriculture Rural Development Agency provided rent subsidy payments to Costello Property Management for tenants who met certain income requirements. Between January 1, 2007 and December 31, 2007, Peterson received cash from tenants in an amount of $32,723.36, which she did not deposit in the Sunrise Village bank account, but instead embezzled and misapplied the funds.
The investigation was conducted by the U.S. Department of Agriculture Office of Inspector General – Investigations. The case was prosecuted by Assistant U.S. Attorney Dennis R. Holmes.
Miramar Man Sentenced in Stolen Identity Tax Refund SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that defendant Johnny Alexander Melo, 36, of Miramar, was sentenced today for his participation in an identity theft tax refund scheme. Melo was sentenced to 60 months of imprisonment, followed by one year of supervised release. In addition, U.S. District Judge Robert N. Scola ordered Melo to pay restitution of $18,594.63 to the IRS. Melo previously pled guilty to one count of conspiracy to use a false identification document, one count of possession of five or more identification documents, one count of theft of government funds and one count of aggravated identity theft. The defendant was remanded to the custody of the U.S. Marshals Service following the hearing.
On October 5, 2012, defendant Melo was charged in a ten (10) count indictment for his participation in an identity theft tax refund scheme. According to the indictment, defendant Melo and his co-conspirators stole personal identification information and used the stolen information to file false tax returns in the identities of at least 22 individuals. The U.S. Treasury issued tax refund checks in the names of those individuals. Melo then attempted to cash these fraudulently obtained tax refund checks by using false driver’s licenses in the names of the stolen identities.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Michael B. Nadler.
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.
Michigan Doctor Sentenced for Role in Medicare Fraud SchemeRead the Press Release
Lansing-area resident Dr. Paul Kelly was sentenced to 18 months in prison today for his role in a $13.8 million Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG), Chicago Regional Office, made the announcement.
Kelly, 76, was sentenced by U.S. District Judge Gerald E. Rosen of the Eastern District of Michigan. In addition to his prison term, Dr. Kelly was sentenced to three years of supervised release and ordered to pay $582,912 in restitution.
Kelly pleaded guilty on Jan. 10, 2013, to one count of health care fraud. According to information contained in plea documents, beginning in or around January 2011 and continuing through approximately March 2011, Kelly signed home health care referrals for a home health agency called Moonlite Home Care Inc., located in Livonia, Mich. Kelly certified Medicare beneficiaries as homebound, a requirement for receiving home health care, when in fact, Kelly had never examined or met the beneficiaries, and they were not homebound. Medicare paid approximately $582,912 for fraudulent home health care claims submitted by Moonlite based on Kelly's referrals.
This case was 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 Eastern District of Michigan. This case was prosecuted by Trial Attorney Catherine K. Dick 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.
Miami-Dade Agrees to $1.6 Billion Upgrade of Its Sewer System to Eliminate Sewage OverflowsRead the Press Release
Under a settlement with the U.S. Department of Justice and the U.S Environmental Protection Agency (EPA) announced today, Miami-Dade County in Florida has agreed to invest in major upgrades to its wastewater treatment plants and wastewater collection and transmission systems in order to eliminate sanitary sewer overflows. The state of Florida and the Florida Department of Environmental Protection (FDEP) are co-plaintiffs with the United States in this action.
Under the terms of the consent decree, Miami-Dade will rehabilitate its wastewater treatment plants and its wastewater collection and transmission system within 15 years. The county will also develop and implement management operation and maintenance programs to help ensure the sewer system is properly operated and maintained in the future. By implementing these measures, Miami-Dade is expected to eliminate sanitary sewer overflows from its wastewater collection and transmission system and achieve compliance with its National Pollutant Discharge Elimination System (NPDES) permits.
“Sewage overflows are a significant problem in the Southeast because of inadequate and aging infrastructure,” said Stan Meiburg, Acting Regional Administrator of EPA’s Southeastern office. “This agreement demonstrates the county’s commitment to address its sewage problems. Eliminating overflows of raw sewage will comply with the Clean Water Act and benefit the Miami-Dade community by providing a cleaner and healthier environment.”
“Miami-Dade County is one of the world’s premier resort destinations and is home to America’s Everglades, two aquatic preserves as well as Bill Baggs Cape Florida, Oleta River and The Barnacle Historic state parks,” said Florida Department of Environmental Protection Secretary Herschel T. Vinyard Jr. “This agreement will bring lasting environmental and recreational benefits to the citizens and visitors of Miami-Dade County by reducing the threats posed by untreated sewage overflows that degrade water quality and contribute to beach closures,”
Between January 2007 and May 2013, Miami-Dade reported 211 sanitary sewer overflows totaling more than 51 million gallons. Such overflows included a number of large volume overflows from ruptured force mains. At least 84 overflows, totaling over 29 million gallons of raw sewage, reached navigable waters of the United States. Miami-Dade’s Central District wastewater treatment plant (WWTP) also experienced several violations of the effluent limits contained in its NPDES permit. EPA also documented numerous operation and maintenance violations at this same WWTP during inspections in September 2011, April 2012 and April 2013.
Miami-Dade estimates it will spend approximately $1.6 billion to complete the upgrades required by the consent decree and come into compliance with the Clean Water Act. Under the settlement, Miami-Dade will also pay a civil penalty of $978,100 ($511,800 to be paid to the United States and $466,300 to FDEP) and complete a supplemental environmental project costing $2,047,200.
Miami-Dade’s supplemental environmental project involves the installation of approximately 7,660 linear feet of gravity sewer mains through the Green Technology Corridor, an area that is currently using septic tanks. Businesses in the area have been unable to connect to the sewer system because sewer lines are lacking. Disconnecting industrial users from septic tanks will improve water quality in the Biscayne aquifer and nearby surface waters and prevent future contamination.
The terms and conditions of the settlement announced today will update, replace and supersede two existing consent decrees between the United States and the county, the 1994 First Partial Consent Decree and the 1995 Second and Final Partial Consent Decree. Both of these existing consent decrees will be terminated upon entry of the new, proposed consent decree. The parties to this settlement recognized that since entry of the previous consent decrees, conditions within and circumstances surrounding Miami-Dade’s sewer system have changed over the last 18 years, including the causes and locations of sanitary sewer overflows. As a result, appropriate modifications and updates to the previous settlements are included in the new settlement.
Today’s announcement is the latest in a series of Clean Water Act settlements, including sanitary sewer overflow remediation and combined sewer overflow control plans that will reduce the discharge of raw sewage and contaminated stormwater into U.S. rivers, streams and lakes. It is part of EPA’s national enforcement initiative to keep raw sewage and contaminated stormwater out of the nation’s waterways. Reductions in sanitary sewer overflows are accomplished by obtaining municipal utilities’ commitments to implement timely, affordable solutions to these problems.
The settlement, lodged today in the U.S. District Court for the Southern District of Florida, is subject to a 30-day public comment period and approval by the federal court. The settlement will be available for viewing at www.justice.gov/enrd/Consent_Decrees.html
More information about EPA’s national enforcement initiative: http://www.epa.gov/compliance/data/planning/initiatives/2011sewagestormwater.html
Mequon Woman Sentenced to 33 Months in Prison for Income Tax EvasionRead the Press Release
James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that Leah M. Kuchta (age: 42) of Mequon, Wisconsin, was sentenced June 5, 2013, to 33 months imprisonment by United States District Judge Charles N. Clevert. Kuchta was indicted by a federal grand jury on August 14, 2012, and charged with six counts alleging tax related offenses.
On December 13, 2012, she pleaded guilty to two counts. Specifically, Kuchta pled guilty to evading $234,836 of federal income tax due and owing on $728,276 of unreported income for tax year 2005. She also pled guilty to filing a false claim for a $76,165 refund, also for the tax year 2005.
The case stemmed from an IRS investigation seeking a wage verification related to the refund claim. During the course of the investigation the IRS determined that Kuchta had embezzled approximately $900,000 from a trust established for the benefit of her grandmother, and had pocketed $30,000 from a fraudulent loan on her sister’s home. Failure to report her illegal income resulted in the evasion charge.
In sentencing Kuchta, Judge Clevert noted the widespread nature of Kuchta’s fraudulent conduct. In addition to the 33 months, Kuchta will serve a period of 3 years supervision after her release from imprisonment. She also is responsible for paying the tax due, and refunding the fraudulent refunds received, in the amount of $324,397. IRS interest and penalties will bring the total amount due to over $778,000.
United States Attorney James L. Santelle commended special agents from the IRS Criminal Investigation for their excellent and detailed investigation which resulted in this prosecution. The case was prosecuted by Assistant United States Attorney Paul L. Kanter.
# # # # #Man Sentenced to Four Years in Prison for Filing Fraudulent Tax Returns in the Names of OthersRead the Press Release
LAS VEGAS, Nev. – A North Las Vegas man was sentenced today to four years in prison, three years of supervised release, and ordered to pay restitution of $64,921 to the IRS, for his guilty pleas to filing multiple false tax returns in the names of others, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
“Knowingly using another person’s identity without authority to steal tax refunds constitutes aggravated identity theft under federal law, and carries a mandatory two-year consecutive sentence to any other charge,” said U.S. Attorney Bogden. “Identity theft is a serious and growing problem that we and our law enforcement partners will continue to address to ensure identity thieves are prosecuted to the fullest extent of the law.”
Joseph Glendon Austin, 35, was sentenced by U.S. District Judge Larry R. Hicks. Austin pleaded guilty on Thursday, Feb. 21, 2013, to one count of presenting a false claim to the United States and one count of aggravated identity theft.
“This case is part of a national sweep to target those who steal taxpayers’ identities for the purpose of obtaining fraudulent tax refunds,” said Paul Camacho, Special Agent in Charge of IRS Criminal Investigation in Nevada. “Eradicating these crimes is a top priority at IRS. Nationally, IRS has tripled the number of tax related identity theft cases.”
According to the guilty plea agreement, sometime before March 31, 2009, in Nevada, Austin obtained access to the personal identifying information of clients of an unnamed tax preparer. On March 31, 2009, Austin unlawfully filed a tax return using the personal identifiers of a client of the tax preparer, but containing falsified income, withholding, and other information. The fraudulent return requested a refund of $4,147, which Austin admitted that he received. Austin then filed multiple more false tax returns using the identifiers of other clients of the tax preparer, and claimed refunds in the form of refund anticipation loans placed on debit cards. Austin admitted that no one gave him permission to use their identifying information.
The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Roger Yang.Lower Brule Woman Charged with Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota woman has been indicted by a federal grand jury.
Deborah Beardsley, age 50, was indicted by a federal grand jury on April 11, 2013 for Assault with a Dangerous Weapon. Beardsley appeared before U.S. Magistrate Judge John E. Simko on June 3, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Beardsley is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Beardsley was released on bond pending trial. A trial date has not been set.
Louisville Man Guilty of Harboring 20,000 Images of Child PornographyRead the Press Release
LOUISVILLE, Ky. – A Louisville man pleaded guilty in United States District Court, before Magistrate Judge Dave Whalin, to a six count federal grand jury indictment charging him with violating federal child pornography laws including the possession of child pornography announced David J. Hale, United States Attorney for the Western District of Kentucky.
Philip Haering, admitted in court to using a peer to peer file sharing network to download images of child pornography between May 19, 2006 and May 3, 2011. According to the factual basis found in the plea agreement, an FBI agent utilizing the same peer-to-peer file sharing network downloaded several password protected files from Haering. During the download, the agent was able to preview one of the files, a movie, that contained child pornography.
The FBI obtained and executed a federal search warrant on August 16, 2011 for Haering's home address. During the execution of the search warrant Haering admitted to viewing child pornography. He also admitted to downloading child pornography since 2003 and claimed to have filled a laptop, two external hard drives and 44 thumb drives with files of child pornography.
A forensic examination revealed over 20,000 files of child pornography. The thumb drives had a total of 2,103 known files of child pornography. The 1 terabyte hard drive had 4,764 known files of child pornography. The 500 GB Hard Drive had 4,446 known files of child pornography, and both laptops had a total of 3,784 known files of child pornography. The forensic examination also revealed that Haering received child pornography on May 19, 2006, September 7, 2008, and August 15, 2011.
Haering faces a statutory mandatory minimum sentence of 5 years in prison. The maximum potential penalties are 110 years in prison, a fine of $1,500,000 and a period of supervised release of at least 5 years and could be for the remainder of his life. Sentencing is scheduled before Judge Whalin on August 29, 2013, in Louisville.
This case is being prosecuted by Assistant United States Attorney A. Spencer McKiness and is being investigated by the FBI.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Lisbon Man Admits Stealing and Possessing FirearmsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that BERNARD McALLISTER, 42, of Lisbon, pleaded guilty today before United States District Judge Stefan R. Underhill in Bridgeport to one count of possession of firearms by a previously convicted felon.
According to court documents and statements made in court, on November 13, 2010, McALLISTER possessed 19 firearms that he and another individual had stolen during a string of residential burglaries that took place between 2008 and 2010. The firearms were discovered in an East Lyme storage locker with more than 8,000 other items believed to have been taken during the burglaries.
Prior to November 13, 2010, McALLISTER had been convicted of multiple felony offenses in several states, including burglary, robbery, breaking and entering, and making terroristic threats with intent to terrorize another. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Underhill has scheduled sentencing for August 29, 2013. McALLISTER is subject to the Armed Career Criminal Act, a federal law imposing severe penalties for firearm or ammunition possession by persons who have been convicted of at least three violent felonies or serious drug offenses. As an Armed Career Criminal, McALLISTER faces a minimum term of imprisonment of 15 years and a maximum term of imprisonment of life.
McALLISTER has been detained since November 18, 2010, when he was arrested in Massachusetts on related charges. After he was arrested, McALLISTER admitted that he had been planning to leave the country.
On May 24, 2013, McALLISTER pleaded guilty in state court to several charges related to the series of residential burglaries.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Connecticut State Police, the Massachusetts State Police, and the East Lyme, Greenwich, Madison, Guilford, Glastonbury, North Branford and Wallingford Police Departments. The case is being prosecuted by Assistant United States Attorneys Jonathan S. Freimann and Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Lincoln Man Sentenced for Possession of PseudoephedrineRead the Press Release
United States Attorney Deborah R. Gilg announced that Senior United States District Judge Richard G. Kopf sentenced Grady E. Gartman, age 50 of Lincoln, Nebraska, to 12 years and 7 months in federal prison, followed by 3 years of supervised release for possession of pseudoephedrine with the intent to manufacture methamphetamine. Gartman entered a guilty plea to the charge in March.
Between October 12, 2010 and May 22, 2012, Grady Gartman purchased or attempted to purchase pseudoephedrine hydrochloride at least 181 times for a total of 399 grams of pseudoephedrine. On 41 occasions Grady Gartman traveled to more than one pharmacy on the same day to buy pseudoephedrine and on September 28, 2011, Gartman purchased pseudoephedrine 8 times in the Omaha and Lincoln area.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.