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Thursday 6 June 2013
Kenneth Wayne Bates Sentenced After Pleading Guilty to Cocaine ChargeRead the Press Release
KENNETH WAYNE BATES, 55, a resident of St. Joseph, Louisiana, was sentenced today by U. S. District Judge Jane Trich Milazzo to ninety-six months imprisonment and four years of supervised release, announced U. S. Attorney Dana J. Boente.
BATES pled guilty on March 7, 2013 to one count of possession with intent to distribute five hundred grams or more of cocaine hydrochloride. The possession with intent to distribute count carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of forty years.
The investigation was conducted by Special Agents of the Department of Homeland Security and the Louisiana State Police. The case was prosecuted by Assistant U. S. Attorney André Jones.
Kansas City, Kan., Man Indicted on Drug, Firearms ChargesRead the Press Release
KANSAS CITY, KAN. – A man from Kansas City, Kan., has been indicted on drug and firearms charges, U.S. Attorney Barry Grissom said today.
Joseph P. Pacheco, 41, Kansas City, Kan., is charged with one count of possession with intent to distribute methamphetamine, one count of carrying a firearm in furtherance of drug trafficking and one count of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred Feb. 5, 2013, in Kansas City, Kan.
If convicted, he faces a penalty of not less than five years and not more than 40 years and a fine up to $5 million on the conspiracy charge; a penalty of not less than five years – consecutive to a sentence for drug trafficking – and a fine up to $250,000 on the charge of possessing a firearm in furtherance of drug trafficking; and a maximum penalty of 10 years and a fine up to $250,000 on the charge of unlawful possession of a firearm after a felony conviction.
The Kansas City, Kan., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney David Zabel is prosecuting.
OTHER INDICTMENTS
Cheryl D. Seigler, 37, Wichita, is charged with two counts of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred May 17 and May 31, 2013, in Sedgwick County, Kan.If convicted, she faces a maximum penalty of 10 years and a fine up to $250,000 on each count. The Wichita Police Department investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
Antonio Villa-Cesario, 37, a citizen of Mexico, is charged with one count of unlawful possession of a firearm by an alien illegally in the United States, and one count of unlawfully re-entering the United States after being deported. The gun crime is alleged to have occurred May 21, 2013, in Wyandotte County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000 on the gun charge, and a maximum penalty of two years and a fine up to $250,000 on the immigration charge. Homeland Security Investigations investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
Mario Alberto Medina-Urias, 28, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. He was found May 24, 2013, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE - Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Edgar Lara-Garcia, 31, a citizen of Guatemala, is charged with unlawfully re-entering the United States after being deported. He was found May 20, 2013, in Crawford County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. ICE - Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Justice Department Reaches Agreement with California <br /> Water District on Bailout Under the Voting Rights ActRead the Press Release
The Justice Department announced that it has reached an agreement with the Linda County Water District, a special district in California, that, if approved by the court, will allow for the district to bail out from its status as a “covered jurisdiction” under the special provisions of the Voting Rights Act, and thereby exempt the district from the preclearance requirements of Section 5 of the Voting Rights Act. The district covers part of Yuba County, Calif., which is a jurisdiction subject to Section 5. The agreement is in the form of a consent decree filed today in the U.S. District Court for the District of Columbia.
Under Section 5 of the Voting Rights Act, certain covered jurisdictions, determined according to Section 4 of the act, are required to seek preclearance for any changes in voting qualifications, standards, practices or procedures from the U.S. District Court for the District of Columbia, or from the U.S. Attorney General, prior to their implementation. Section 4 of the act provides that a covered jurisdiction may seek to “bail out,” or remove itself from such coverage, and become exempted from the preclearance requirements, by seeking a declaratory judgment before a three-judge panel in U.S. District Court for the District of Columbia. A bailout judgment can be issued only if the court determines that the jurisdiction meets certain eligibility requirements for bailout contained in the statute, including a 10-year record of nondiscrimination in voting-related actions. The act also provides that the Attorney General can consent to entry of a judgment of bailout only if, based upon investigation, the Attorney General is satisfied that the jurisdiction meets the eligibility requirements.
The Linda County Water District filed its bailout action in the U.S. District Court for the District of Columbia on March 21, 2013. District officials had contacted the Attorney General prior to filing its action, indicating that the district was interested in seeking a bailout. The district provided the department with substantial information and the department conducted an investigation to determine the district’s eligibility. Based on that investigation the department is satisfied that the district meets the Voting Rights Act’s requirements for bailout.
“In this case, the department carefully evaluated the information provided by the district, and conducted its own investigation, which has satisfied us that the district is eligible for bailout,” said Matthew Colangelo, Deputy Assistant Attorney General for the Civil Rights Division. “We appreciate the district’s cooperation in the resolution of this matter.”The consent decree details the legal and factual basis for a bailout determination and, if approved, will grant the district’s request. The court will retain jurisdiction of the action for 10 years and can reopen the action upon the motion of the Attorney General or any aggrieved person alleging conduct by the district that would have originally precluded the district from bailing out if it had occurred during the 10 year period preceding entry of the consent decree.
Information about bailout, the Voting Rights Act, and other federal voting laws is available on the department’s website at www.justice.gov/crt/voting. Complaints may be reported to the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.Incarcerated Man Admits Escaping from Renewal Halfway HouseRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh resident pleaded guilty in federal court to a charge of escape from federal custody, United States Attorney David J. Hickton announced today.
Derric Mason, pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that on or about Aug. 28, 2012, Mason, who had been incarcerated based on a supervised release violation resulting from a 2006 conviction for violating federal firearms laws, escaped from Renewal, Inc., a halfway house located in Pittsburgh.
Judge Fischer scheduled sentencing for Oct. 1, 2013 at 9 a.m. The law provides for a total sentence of not more than five years incarceration, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney Katherine A. King is prosecuting this case on behalf of the government.
The United States Marshals Service conducted the investigation that led to the prosecution of Derric Mason.
Hustle Boys Gang Member Sentenced to 30 Years in Prison for Drug Trafficking Conspiracy and Witness TamperingRead the Press Release
A 22-year-old Detroit man was sentenced to 30 years in federal prison for drug trafficking on Tuesday, June 4, 2013, U.S. Attorney Barbara McQuade announced today.
McQuade was joined in the announcement by Robert D. Foley, III, Special Agent in Charge of the Federal Bureau of Investigation, Detroit Division.
U.S. District Judge Patrick J. Duggan imposed sentence on Jeron Gaskin in federal court in Detroit.
In November 2012, a jury found Gaskin, a member of a violent Detroit street gang known as the Hustle Boys, guilty of one count of participating in a drug conspiracy, and two counts of possession with intent to distribute illegal drugs. On Tuesday, Gaskin also pleaded guilty to one count of witness tampering, admitting that he had threatened the life of a witness, the witness’s minor child and the child’s mother before the drug trafficking trial. He received a sentence on the witness tampering charge of 46 months in prison concurrent to the 30-year drug trafficking sentence.
Evidence presented at trial showed that beginning in 2007 and continuing to March 2011, Gaskin, other members and associates of the Hustle Boys, and others engaged in drug trafficking by possessing marijuana for distribution and by illegally transporting thousands of OxyContin, Opana, and other controlled, prescription pain pills from Detroit to southern Ohio and West Virginia, where they sold pills out of hotel rooms and three residences they maintained in the area for drug distribution purposes. At times, members of the conspiracy traded pills for firearms and brought some of the firearms back to Detroit. The evidence also showed that Gaskin and other members of the conspiracy used a house on Hamburg Street in Detroit to store controlled substances including marijuana and pills, count and package pills for shipment to Ohio and West Virginia, and store firearms and cash proceeds of drug trafficking.
Gaskin and nine other members of the conspiracy were indicted for the conspiracy offense for which Gaskin was found guilty on November 30, 2011. The following co-defendants pleaded guilty prior to trial and were previously sentenced:
- Mark Davis was sentenced on January 29, 2013 to 155 months in federal prison. Davis also is serving a three-year sentence in the Ohio Department of Rehabilitation and Correction.
- William Crews was sentenced on May 6, 2013 to 50 months in federal prison. Crews also is serving a three-year sentence in the Ohio Department of Rehabilitation and Correction.
- Darrell Ewing was sentenced on January 28, 2013 to 180 months in federal prison. Ewing also is serving a life sentence for murder in the Michigan Department of Corrections.
- Deonte Morris was sentenced on January 15, 2013 to 130 months in federal prison.
- Delmerey Morris was sentenced on February 26, 2013 to 144 months in federal prison. Delmerey Morris also is serving a 35 to 60 year sentence for murder in the Michigan Department of Corrections.
- Ashley Sallad was sentenced on January 14, 2013 to 1 day of imprisonment and three years of supervised release.
- Pinkie Lewis was sentenced on January 23, 2013 to one year plus one day in federal prison.
Co-defendant Randi Fortner was recently indicted, arrested, and is facing pretrial detention and removal proceedings in the United States District Court for the Southern District of West Virginia. The drug trafficking conspiracy charge was dismissed against co-defendant William Beal following Beal’s guilty plea and sentence in a federal carjacking case.
United States Attorney Barbara McQuade stated: “Armed drug trafficking brings violent crime to our neighborhoods. We hope that strong sentences like these can help remove these organizations from our community.”
U.S. Attorney McQaude applauded the cooperative efforts of the Federal Bureau of Investigation's Violent Crime Task Force and the Ohio State Highway Patrol. Assistant United States Attorneys Mark Chasteen and Margaret Smith of the office’s Violent and Organized Crime Unit and General Crimes Unit represented the United States at trial. Assistant United States Attorney Jeanine Brunson assisted throughout the FBI’s lengthy investigation.
Hill City Man Pleads Guilty to Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that Francisco Escobar-Tinjero, age 49, of Hill City, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy, on May 30, 2013 and pled guilty to conspiracy to distribute a controlled substance.
The maximum penalty upon conviction is not less than 5 or more than 40 years’ imprisonment and/or a $5,000,000 fine.
From approximately June 2010 until April 4, 2012, Escobar-Tinjero conspired and agreed with others to distribute 50 grams or more of methamphetamine in South Dakota.
The investigation was conducted by Homeland Security Investigations, Drug Enforcement Administration, South Dakota Division of Criminal Investigation, Minnesota Bureau of Criminal Apprehension, Sioux Falls Area Drug Task Force, and the Unified Narcotics Enforcement Team. The case is being prosecuted by Assistant U.S. Attorney Ted L. McBride.
A presentence investigation was ordered and a sentencing date was set for September 27, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Grand Jury Superseding Indictment Alleges Drug Charges Against Top Members of the "107 Hoover Crips"Read the Press Release
TULSA, Okla. –United States Attorney Danny C. Williams Sr. announced that four men have been charged in a superseding indictment returned today by a Federal Grand Jury in Tulsa. The superseding indictment is the result of a two-year investigation conducted by the Organized Crime Drug Enforcement Task Force (OCDETF) into the “107 Hoover Crips” street gang and its criminal activities of drug dealing, extortion, and violence, including shootings.
Lorell Antonio Battle, 30, Paul Edward Battle, 31, Thomas Layeffetta Jackson, 27, and Gaywone Dekeith Blades, 18, all of Tulsa, are charged with conspiring to distribute cocaine base, commonly known as “crack” cocaine. Lorell Battle and Gaywone Blades are also accused of possessing firearms in furtherance of their drug trafficking and maintaining apartments in the 61st Street and Peoria Avenue area of Tulsa to distribute, store, and use cocaine base in other charges of the eleven (11) count superseding indictment.
United States Attorney Williams and Chief of Police Chuck Jordan emphasized the need for continuing the combined efforts of federal, state and local law enforcement agencies in fighting the drug trafficking and violent gang activities in the 61st Street and Peoria Avenue neighborhood. U.S. Attorney Williams stated that a strong partnership of Tulsa’s law enforcement agencies will result in a better community for all residents. The charges resulted from an investigation of the Tulsa Police Department’s Special Investigations Division assisted by the DEA, the FBI, and the Tulsa County District Attorney’s Office. Assistant United States Attorneys Robert T. Raley, Allen J. Litchfield, and Catherine Depew are prosecuting the case on behalf of the United States.
A Grand Jury Indictment is one method of charging a defendant with alleged violations of Federal Law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendants’ presumption of innocence.
Grand Island Man Sentenced to 10 years for Possessing Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Tyler Nuss, age 25 of Grand Island, Nebraska, was sentenced in federal court in Omaha for possessing child pornography. The Honorable Joseph F. Bataillon sentenced Nuss to a ten year term of imprisonment. There is no parole in the federal system. After his release from prison Nuss will begin a ten year term of supervised release.
Nuss was previously convicted in Hall County, Nebraska, of possessing child pornography. His 2008 state conviction resulted in a sentence of probation and was later set aside by the court.
In December 2012 the Federal Bureau of Investigation served a search warrant on Nuss’s Grand Island residence. The search warrant sought evidence relating to child pornography offenses. Agents discovered over 150 videos of child pornography on discs secreted behind an air vent in Nuss’s bedroom. Nuss indicated that he collected child pornography by trading with other collectors on the internet.
This case was brought 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.
Goodwin Announces 21 Indicted for Selling Pills in Southern West Virginia CrackdownRead the Press Release
Anti-pill sweep continues
BLUEFIELD, W.Va. – U.S. Attorney Booth Goodwin today announced that 21 individuals have been indicted for selling powerful prescription painkillers. The indictments were unsealed following the arrest of each defendant and their subsequent initial appearances in U.S. District Court for the Southern District of West Virginia.
The charges against each defendant have been brought as a part of the Bluefield Pill Initiative, a concerted attack by federal, state, and local government on the illegal distribution of prescription drugs in the southern region of West Virginia. The initiative was announced by U.S. Attorney Goodwin in June 2011.
"Prescription drug abuse has ravaged families and communities across the country. Southern West Virginia has seen too many people fall victim to this plague," said U.S. Attorney Goodwin.
Goodwin continued, “This round of prosecutions reaffirms our commitment to the Bluefield Pill Initiative and our resolve to put pill pushers out of business."
The following individuals were indicted:
Carolos Renaldo Ivy, 33, of Princeton, Mercer County, W.Va., was charged with conspiracy to distribute oxycodone, three counts of distribution of oxycodone and one count of using a telephone to commit a drug crime;
Aaron O. Gamble, 30, of Princeton, Mercer County, W.Va., was charged with conspiracy to distribute oxycodone, one count of distribution of oxycodone and one count of using a telephone to commit a drug crime;
Eric Lee Flack, 34, of Bluefield, Mercer County, W.Va., was charged with conspiracy to distribute oxycodone, one count of distribution of oxycodone and three counts of using a telephone to commit a drug crime;
Ansel William Ponder, 22, of Bluefield, Mercer County, W.Va., was charged with conspiracy to distribute oxycodone, one count of distribution of oxycodone and three counts of using a telephone to commit a drug crime;
Danny Lee Decker, 42, of Mullens, Wyoming County, W.Va., was charged with conspiracy to distribute oxycodone, two counts of distribution of oxycodone, one count of aiding and abetting the distribution of oxycodone and three counts of using a telephone to commit a drug crime;
Joni Earlene Rash, 42, of Princeton, Mercer County, W.Va., was charged with conspiracy to distribute oxycodone, one count of distribution of oxycodone and three counts of using a telephone to commit a drug crime;
Ralph Ray Cantley, 54, of Matheny, Wyoming County, W.Va., was charged with conspiracy to distribute oxycodone, one count of using a telephone to commit a drug crime and one count of maintaining a place for the purpose of distributing and using oxycodone;
Kathy Burchett, 38, Welch, McDowell County, W.Va., was charged with conspiracy to distribute oxycodone and three counts of using a telephone to commit a drug crime;
Elizabeth Ann Stewart, 30, 0f Matheny, Wyoming County, W.Va., was charged with conspiracy to distribute oxycodone and one count of oxycodone;
Tonya Lynn Goode, 35, Matheny, Wyoming County, W.Va., was charged with conspiracy to distribute oxycodone and one count of distribution of oxycodone;
Anthony Lee Madison, 23, of Bluefield, Va., was charged with conspiracy to distribute oxycodone and three counts of using a telephone to commit a drug crime;
Edgar Junior Ponce, 32, of Oceana, Wyoming County, W.Va., was charged with conspiracy to distribute oxycodone and three counts of using a telephone to commit a drug crime;
Laken Nicole Myers, 25, of Welch, McDowell County, W.Va., was charged with conspiracy to distribute oxycodone and three counts of using a telephone to commit a drug crime;
Randall Ray Parks, 51, of Welch, McDowell County, W.Va., was charged with conspiracy to distribute oxycodone and three counts of using a telephone to commit a drug crime;
Lori Megan Falls, 29, of Princeton, Mercer County, W.Va., was charged with conspiracy to distribute oxycodone and two counts of using a telephone to commit a drug crime;
Eric M. Tiller, 41, of Princeton, Mercer County, W.Va., was charged with conspiracy to distribute oxycodone and three counts of using a telephone to commit a drug crime;
Matthew M. Pigg, 27, of Montcalm, Mercer County, W.Va., was charged with possession with intent to distribute hydromorphone, a powerful prescription painkiller commonly known as Dilaudid;
Jennifer Marie Farley, 29, of Princeton, Mercer County, W.Va., was charged with three counts of distribution of hydromorphone;
Kevin Eugene Petty, 36, of Bluefield, Mercer County, W.Va., was charged with three counts of distribution of hydromorphone;
Rickey David Coburn, II, 26, of Princeton, Mercer County, W.Va., was charged with conspiracy to distribute hydromorphone and five counts of distribution of hydromorphone;
Lakeisha Danell Howze, 27, of Princeton, Mercer County, W.Va., was charged with conspiracy to distribute hydromorphone and distribution of hydromorphone.
An indictment is merely an accusation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, each defendant faces up to 20 years in prison and a $1 million fine.
The Bluefield Pill Initiative is a collaborative, multi-agency regional law enforcement effort designed to halt prescription drug trafficking specifically in Mercer, McDowell, and Wyoming counties. The Bluefield Pill Initiative is led by the Southern Regional Drug and Violent Crime Task Force which is made up of the West Virginia State Police Bureau of Criminal Investigation, Sheriffs’ Departments of Mercer, McDowell and Wyoming County, as well as the Bluefield and Princeton Police Departments.
Click on the links below to view the copies of the indictments:
Indictment 1
Indictment 2
Indictment 3
Indictment 4
Indictment 5
From Selling Time to Doing Time: U.S. Attorney for the Southern District of Illinois with U.S. Postal Inspection Service Prosecutes 34 in Various Timeshare Resale SchemesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today his participation in a multi-state, multi-national law enforcement initiative against deceptive timeshare resale scams. The initiative involves over two dozen state attorneys general, various federal, state and local law enforcement agencies, the Federal Trade Commission, and several U.S. Attorneys offices.
"The Southern District of Illinois leads the nation in prosecuting telemarketing fraud - my office prosecuted more defendants in fiscal year 2012 for telemarketing fraud than any other district in the nation," U.S. Attorney Wigginton announced. The Southern District of Illinois prosecuted several timeshare resale scams throughout Florida, as well as in Las Vegas, Nevada. The cases were brought in the Southern District of Illinois because these scams bilked timeshare owners here. So far, thirty-six telemarketers (36) have been convicted. Of those, two dozen have been sentenced with the kingpin of one of the scam companies receiving a sentence of over fifteen (15) years’ incarceration.
"The scams we prosecuted generated over $50 million dollars in ill-gotten gains. Behind this vast fortune lies a vast crime," Wigginton said.
The scams follow a familiar pattern. The timeshare owner, who bought into a dream sold by the timeshare developer, for various reasons, finds that she needs to sell her timeshare unit. Some do because they have lost employment or face some other economic hardship. Some do because they can no longer afford the maintenance costs. Others find that they just don't use it. Whatever the reason, when a telemarketer calls her on telephone and tells her that the telemarketer has a buyer or interested party for her timeshare unit who will pay at, near, or even more than the owner originally paid, the timeshare owner often jumps at the chance. The typical advanced fee of $1,000 to $2,000, which is solicited by the telemarketer who represents it to be closing related expenses like deed preparation, title and maintenance reports, seems a small price to pay for the thousands of dollars that the timeshare owner is guaranteed to receive by cashier's check from the title company which will be closing the sale. But the buyers turn out to be an illusion because there is no substantial market for reselling timeshares where the timeshare owner can get what they paid when originally purchased. When the timeshare owner who paid fees to these companies based upon a lie calls these companies to find out about the status of their closing, they are then lied to further. Few ever get their money back when they complain.
Since there never were any closings, the fees were split among the telemarketers often fueling expensive drug habits. "In the experience of our investigators, this is an industry where having a criminal record and an active drug habit is considered a real asset." (Wigginton was speaking of the cases that have pleaded guilty and have been sentenced.) In the words of one timeshare resale company owner, having a criminal record meant that the prospective telemarketer "was no goody two shoes." Since, in the words of one of the convicted telemarketers, "good salesmen" are "good liars." The ability and willingness to lie is a key job skill for the industry.
“Tens of thousands of people across the country have bought timeshares they can no longer afford to visit or maintain, and those falsely claiming they have a buyer for these timeshares are simply thieves,” said C. Steven Baker, Director of the Federal Trade Commission’s Midwest Region. “By working together with the U.S. Attorney’s office in the Southern District of Illinois we’ve been able to stop these scammers cold, get money back to victims, and see the crooks get the jail time they deserve.” The FTC has been involved in many of the timeshare resale cases prosecuted in the district.
"At least a bank robber commits his crime without pretense. Telemarketers, by contrast, hide behind a telephone to gain the trust of their victims with lies and manipulation. These crimes are particularly pernicious because the victims are not only robbed of their money, they are also robbed of their ability to trust," said Pete Zegarac, Inspector in Charge, Chicago Division, U.S. Postal Inspection Service. The U.S. Postal Inspection Service has been the lead agency in all telemarketing and mass marketing cases prosecuted in the Southern District of Illinois.
Wigginton has two words of advice for consumers called by telemarketers offering to sell their timeshare unit…."Hang up!"
Attachment - Spreadsheet
Former Vice President of University Medical Center in Lubbock Pleads Guilty in Federal Court to Mail FraudRead the Press Release
LUBBOCK, Texas — Robert Gregory Bruce, aka Greg Bruce, 46, appeared in federal court today before U.S. District Judge Sam R. Cummings and pleaded guilty to an Information charging one count of mail fraud and aiding abetting, stemming from a fraud scheme he ran while he served as a Vice President of University Medical Center (UMC) in Lubbock. Bruce, a resident of Lubbock, will remain on bond. He faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and restitution. Judge Cummings ordered a presentencing investigative report with a sentencing date to be set upon the completion of that report.
According to documents filed in the case, beginning in June 2007 and continuing to December 12, 2011, Bruce conspired with Rudolph Reyes Mata, aka Rudy Mata, to submit false and fraudulent invoices for two companies, B.R. Media Monitoring (an alter ego of Bruce) and ATAM Technology Solutions, knowing that the submission of such invoices would cause UMC to pay the fake invoices. Over the course of the conspiracy, Bruce and Mata caused UMC to pay approximately $681,908 on invoices for fake companies that did not provide goods or services as described in the invoices. Bruce used these funds, in part, to pay Mata’s personal living expenses, educational expenses, and travel and entertainment expenses.
Bruce also admitted that he used a UMC credit card to make unauthorized payments and purchases of approximately $55,584.
The case is being investigated by the FBI. Assistant U.S. Attorney Amanda R. Burch is in charge of the prosecution.
Former New Jersey Law Firm Employees Who Embezzled More Than $788,000 in Law Firm Funds Sentenced to PrisonRead the Press Release
TRENTON, N.J. – Two former employees of a law firm based in Edison, N.J., were sentenced to prison terms today for conspiring to defraud their former employer by improperly diverting more than $788,000 from the law firm, U.S. Attorney Paul J. Fishman announced.
Marla Deptula, 46, of Sayreville, N.J., previously pleaded guilty to an information charging her with one count of conspiracy to commit mail fraud and one count of subscribing to a false tax return. She was sentenced to 20 months in prison. Rose L. Crabbe, 32, of Plainfield, N.J., pleaded guilty to an information charging her with one count of conspiracy to commit mail fraud. She was sentenced to 15 months in prison. Both defendants previously entered their guilty pleas before U.S. District Judge Peter G. Sheridan, who imposed the sentences today in Trenton federal court.
According to documents filed in this case and statements made in court:
Deptula and Crabbe each admitted that between February 2005 and September 2007, they conspired to embezzle, and did, in fact, embezzle, from their former employer, referred to in court documents only as the “Law Firm,” by wrongfully writing checks from the law firm’s trust and business accounts to themselves and their personal creditors to pay for their personal expenses, including credit card bills, real estate taxes and child care expenses. Deptula and Crabbe then mailed some of the checks to their personal creditors. They further admitted to attempting to hide their theft by altering the payee information in the law firm’s accounting records.
Deptula, who had access to the law firm’s bank accounts in order to perform her duties as a secretary in the law firm’s real estate section, used that access to divert more than $788,000 from the attorney trust and business accounts for her and Crabbe’s personal benefit. Deptula received the vast majority of the stolen funds and failed to report any of the income on her federal tax returns.
In addition to the prison terms, Deptula and Crabbe were both sentenced to three years of supervised release. Deptula was ordered to pay $705,093 in restitution and Crabbe was ordered to pay $74,206 in restitution.
U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Marie L. Kelokates: IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and the Middlesex County Prosecutor’s Office, under the direction of Acting Prosecutor Andrew C. Carey, for the investigation leading to today’s sentencings.
The government is represented by Special Assistant U.S. Attorney Joseph Muoio of the U.S. Attorney’s Office Criminal Division in Trenton.13- 238
Defense counsel:
Deptula: Andrea Bergman Esq., Assistant Federal Public Defender, Trenton
Crabbe: Michael Armstrong Esq., Willingboro, N.J.Former Fort Collins Resident Sentenced for Denial of Service Attack on Larimer County Government ComputersRead the Press Release
DENVER – David Joseph Rezendes, aka Joseph David Rezendes, aka Joe Rezendes, age 27, was sentenced Tuesday by U.S. District Court Judge R. Brooke Jackson to serve 18 months in federal prison for intentionally damaging a protected computer and for possession of unauthorized access devices (credit card information), United States Attorney John Walsh, FBI Denver Special Agent in Charge Thomas Ravenelle and Larimer County Sheriff Justin Smith announced. Rezendes was responsible for a denial of service attack he implemented to retaliate against the Larimer County government. After serving his sentence, Judge Jackson ordered Rezendes to spend 3 years on supervised release. Rezendes, who appeared at the hearing in custody, was remanded.
Rezendes was indicted by a federal grand jury on August 27, 2012. He pled guilty before Judge Jackson on March 8, 2013. He was sentenced on June 4, 2013. A hearing has been scheduled for July 23, 2013 for the court to set the amount of restitution Rezendes must pay to Larimer County.
According to court records, starting on Wednesday, September 22, 2010, a debilitating denial of service attack was launched against Larimer County government’s computer network. A denial of service attack makes a computer resource, such as a network or processor, unavailable to its intended users. A common denial of service attack involves a computer or computer network saturating a targeted victim computer system or network, overwhelming that system or network with traffic or communications requests. The attack lasted until September 24, 2010. A second attack occurred between October 4, 2010 and October 6, 2010. The denial of service attacks affected Larimer County employees’ ability to access email and county records. Two departments’ telephone systems were affected, as was the public’s ability to access county services online.
The Larimer County Sheriff’s Department and the FBI investigated the attack. As part of their investigation, law enforcement executed a court authorized search warrant of Rezendes’ residence. Computers and computer components were seized during the search. FBI case agents and Larimer County Sheriff’s Department computer forensic experts performed an analysis examining the data on the computers, uncovering evidence that the defendant was in fact responsible for the denial of service attack. They also uncovered evidence that Rezendes possessed stolen credit card information for more than 100 individuals.
As a consequence of his earlier guilty pleas, Rezendes is subject to a criminal asset forfeiture, which states that upon conviction of the violations stated in the guilty plea, the defendant shall forfeit to the United States any and all of the defendant’s right, title and interest in all property constituting and derived from any proceeds obtained directly and indirectly as a result of such offense, or property used to commit the offense, to include computers and computer components. In this case the defendant had to forfeit: 3 desktop computers, 3 laptop computers, 9 computer hard drives, 2 routers, 3 cable modems, a 32GB SDHC card, a USB thumb drive, a Camcorder, a WiFi Network Adapter, an omni-directional antenna, and a magnetic stripe card reader/writer.
“Rezendes attacked the Larimer County computer system because he was angry about a traffic ticket,” said U.S. Attorney John Walsh. “His denial of service attack impacted thousands of people for several days. Thanks to the excellent work of the Larimer County Sheriff and the FBI, Rezendes will spend 18 months in prison.”
“In this case, a personal vendetta against a government agency turned into a criminal act,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “Regardless of motivation, the FBI is committed to tracking down cybercriminals who launch such malicious, targeted attacks.”
“The computer attack in this case had a significant impact on Larimer County both operationally and financially,” said Larimer County Sheriff Justin Smith. “Cyber-crimes of this nature underscore the importance of cooperation between local and federal officials and the need for their expertise and assistance.”
This case was investigated by the Larimer County Sheriff’s Office and the Federal Bureau of Investigation.
The defendant was prosecuted by Assistant United States Attorney Ryan Bergsieker.
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Former Executive Director of Noah, Stacey Jackson, IndictedRead the Press Release
STACEY JACKSON, age 46, a resident of New Orleans, Louisiana, was charged in a four count indictment by a Federal Grand Jury today with Conspiracy, Soliciting and Demanding Payment in Association with a Program Receiving Federal Funds, Theft of Federal Funds, and Obstruction of Justice, announced U. S. Attorney Dana Boente.
According to court documents, JACKSON, the Executive Director of New Orleans Affordable Homeownership (“NOAH”), a city agency and non-profit corporation, conspired with Earl Myers, Trellis Smith, and others to misuse and personally benefit from federal funds that NOAH had received, in violation of the law. The United States Department of Housing and Urban Development (“HUD”), both before and after Hurricane Katrina, had provided grant money to the City of New Orleans to address blight within the city and to remediate homes damaged by the storm.
STACEY JACKSON, as the Executive Director of NOAH, was responsible for the day to day management of the agency and determined how much each sub-contractor would be paid. According to the Indictment, JACKSON arranged for excessive payments to subcontractors with the expectation that those subcontractors would kickback portions of the overpayments to JACKSON’S benefit.
Additionally, JACKSON is charged with Obstructing Justice by submitting false and forged invoices to a Federal Grand Jury in response to Grand Jury subpoenas.
If convicted, JACKSON faces a maximum term of imprisonment of five (5) years along with a fine of $250,000, and three (3) years of supervised release on the Conspiracy count, and ten (10) years, a fine of $250,000.00 and three (3) years of supervised release for the additional counts.
U. S. Attorney Boente reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, and the Department of Housing and Urban Development—Office of Inspector General.
The case is being prosecuted by Assistant U. S. Attorney Dan Friel and First Assistant United States Attorney Fred Harper.
(Download Indictment )
Former Apalachicola Housing Authority Director Indicted for Misuse of FundsRead the Press Release
TALLAHASSEE, FLORIDA – Selena Jo Noblit, 42, of Panama City, Florida, appeared today in federal court, charged with stealing funds from a program that received federal grant money.
According to the criminal indictment, between June 2011 and May 2012, while serving as the executive director of the Apalachicola Housing Authority located in Franklin County, Florida, Noblit allegedly embezzled and misapplied funds under the control of the housing authority for her personal gain and for the benefit of others who were not entitled to the funds.
Noblit is scheduled for trial on August 5, 2013, before Judge Robert L. Hinkle. She is facing a possible maximum sentence of ten years in prison, three years of supervised release, a $250,000 fine, and a $100 special monetary assessment.
U.S. Attorney Marsh praised the work of the U.S. Department of Housing and Urban Development, Office of Inspector General, whose investigation led to the indictment in the case.
The case is being prosecuted by Assistant U.S. Attorneys Winifred Acosta NeSmith and Eric K. Mountin.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial in a court of law.
Final Defendant in Idaho Meth Trafficking Conspiracy Sentenced to Life in PrisonRead the Press Release
BOISE – Jim Allen Loveland, 58, of Boise, Idaho, was sentenced yesterday in United States District Court in Boise to life in prison for conspiracy to possess with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Loveland to serve 10 years of supervised release.
Loveland was convicted by a federal jury on January 22, 2013, along with co-conspirators Jesus Guadalupe Sanchez, a/k/a Jose Salazar, and Michael Dennis Morris. According to evidence presented during the six-day trial, Loveland, Sanchez and Morris were convicted of conspiring with others, including co-defendants, to distribute a total of approximately eleven pounds of methamphetamine in Canyon, Payette and Washington counties between November 2011 and May 16, 2012.
Prior to Loveland’s jury trial, the U.S. Attorney’s Office, in a court filing, notified Loveland that he had two prior felony drug offense convictions, one out of Nevada in 1999 and the other out of Idaho in 1985. Because of these prior convictions, Loveland was sentenced to a mandatory life sentence, which is required by federal statute.
Ten co-defendants sentenced earlier include:
- Jesus Guadalupe Sanchez, a/k/a Jose Salazar, 32, a Mexican national, the leader and organizer of the conspiracy, was sentenced in April 2013 to 400 months in prison for conspiracy to distribute methamphetamine, and possession of methamphetamine with intent to distribute.
- Michael Dennis Morris, 42, of Weiser, Idaho, was sentenced in April 2013 to 156 months in prison and fined $2,000 for conspiracy to possess with intent to distribute methamphetamine.
- Dawson Lee Moore, 60, also of Weiser, was sentenced in March 2013 to 36 months in prison and fined $1,000 for conspiracy to possess with intent to distribute methamphetamine.
- Benjamine L. Vertner, 34, of Ontario, Oregon, was sentenced in February 2013 to 138 months in prison for conspiracy to possess with intent to distribute methamphetamine.
- Jacob James Clevenger, 31, of Weiser, was sentenced in February 2013 to 188 months in prison for conspiracy to possess with intent to distribute methamphetamine.
- Kristopher Hensley, a/k/a Casey (I.C.) Hensley, 27, of Weiser, was sentenced in February 2013 to 51 months in prison for conspiracy to possess with intent to distribute methamphetamine.
- Johnny A. Tambunga, 40, of Weiser, was sentenced in February 2013 to 47 months in prison for conspiracy to possess with intent to distribute methamphetamine.
- Mario Martinez, Jr., 55, of Greenleaf, Idaho, was sentenced in February to 57 months in prison for conspiracy to possess with intent to distribute methamphetamine.
- Fabian Jordano Beltran, 24, of Weiser, was sentenced in February to 36 months in prison for conspiracy to possess with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking offense.
- Patric Campbell, 36, of Boise, was sentenced in February 2013 124 months in prison for conspiracy to possess with intent to distribute methamphetamine.
"These drug traffickers well deserve the lengthy sentences the Court imposed," said Olson. "This outstanding investigation and prosecution demonstrate that federal, state and local law enforcement will work together in all parts of Idaho to ensure that those who seek to poison our communities with this poisonous drug are caught, prosecuted and punished."
The case was investigated by the Idaho State Police with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Federal Court Permanently Enjoins Florida Tax Return PreparerRead the Press Release
A federal court in Miami has permanently barred Osvaldo J. Diaz of Coral Gables, Florida, from preparing federal tax returns for others, the Justice Department announced today. The permanent injunction order was signed by Judge Jose E. Martinez of the U.S. District Court for the Southern District of Florida.
The government’s complaint alleged that Diaz prepared tax returns that fabricated deductions and credits in an attempt to understate his customers’ tax liabilities or inflate his customers’ refunds. Specifically, the government alleged that Diaz fabricated business and personal expenses and inflated real estate losses for his customers. According to the complaint, the Internal Revenue Service examined 250 returns prepared by Diaz and found that 93 percent resulted in additional taxes being owed. The government alleged that the tax loss from the returns prepared by Diaz could be tens of millions of dollars.The IRS lists return-preparer fraud as one of the Dirty Dozen Tax Scams for 2013. In the past decade, the Justice Department's Tax Division has obtained injunctions against hundreds of tax fraud promoters and unscrupulous tax preparers. Information about these cases is available on the Justice Department website.
Federal Agents Arrest Six People Across Alabama Charged with State Inmate in Tax Refund SchemeRead the Press Release
Indictment.pdf
BIRMINGHAM – Federal agents today arrested six people in four cities across Alabama who are charged in connection with a five-year federal tax fraud conspiracy directed from inside an Alabama state prison, announced U.S. Attorney Joyce White Vance, Internal Revenue Service Criminal Investigation Division Special Agent in Charge Veronica Hyman-Pillot, and FBI Special Agent in Charge Richard D. Schwein Jr.
The man charged as the leader of the conspiracy, SHERMAINE “Shade” GERMAN, 56, now incarcerated in Bibb County Correctional Facility in Brent, was an inmate at Donaldson Correctional Facility in Bessemer at the time of the conspiracy. He is charged with orchestrating the far-reaching tax fraud scheme from Donaldson, where he obtained the names, birth dates and Social Security numbers of other people, often fellow inmates, including prisoners on death row and those serving sentences of life without parole. He used their information to create false income tax returns that contained fabricated amounts of tax withholdings, according to the indictment unsealed following the arrests.
German also created false power of attorney forms, which he mailed out of the prison along with the false income tax returns, according to the indictment. Various other members of the conspiracy notarized the power of attorney forms and used them to cash or deposit income tax refund checks received as part of the scheme, according to the indictment.
Six of seven people charged in the conspiracy with German were arrested today in Huntsville, Montgomery, Eufaula and Mobile.
“Schemes such as this involve millions of dollars stolen from legitimate taxpayers and the U.S. Treasury,” Vance said. “Thanks to the diligent and cooperative efforts of law enforcement, we were able to shut down this long-term fraud.”
"Individuals who commit refund fraud and identity theft with this degree of trickery, dishonesty and deceit deserve to be punished to the fullest extent of the law," Hyman-Pillot said. "We, along with the United States Attorney's Office, continue to do our part in protecting the sanctity and integrity of the tax system.”
“This case, as others our office and our law enforcement partners have investigated, shows that a person's identity and identification numbers have become a valuable commodity to today's criminal and should be guarded diligently by their owners,” Schwein said.
The 20-count May indictment filed in U.S. District Court charges that German and his co-defendants conspired from January 2008 through May 2013 to obtain payment of false claims for refunds from the Internal Revenue Service by filing fraudulent federal income tax returns in other people’s names.
Charged along with German in the conspiracy are: RONALD WEBSTER, 55, BRENDA JOYCE McDONALD, 55, and YVETTE BERRY PINCKNEY, 48, all of Montgomery; MARLO YVETTE MILLER, 46, and IRENE KING DOUGLAS, 58, both of Huntsville; CYNTHIA DIANNE WARE, 49, of Eufaula; and BARBARA ANN GRIMES, 62, of Mobile.
McDonald is the one defendant not yet in custody.
Further details of the scheme, as outlined in Count One of the indictment, are as follows:
Douglas sent blank tax return forms to German in prison. Douglas also received and cashed or deposited proceeds from tax refund checks using power of attorney forms she had someone else notarize.
German used two addresses in Montgomery and one in Mobile as return addresses where tax refunds should be delivered. One of the addresses was a Montgomery P.O. Box owned by Webster; one was the Montgomery apartment address of McDonald on Bonaparte Boulevard; and the third was a Mobile P.O. Box from which Grimes collected refund checks and power of attorney forms.
Webster collected IRS refund checks mailed to his P.O. Box and provided the checks and power of attorney forms to other co-conspirators, including Miller and Ware in Huntsville and Pinckney in Montgomery. Pinckney notarized power of attorney forms and, along with other co-conspirators, used the forms to cash or deposit fraudulent refund checks. Proceeds from the scheme were deposited into Pinckney’s Regions Bank account. Pinckney communicated with German on a contraband telephone he had in prison.
Miller cashed or deposited the fraudulent refund checks she received from Webster into Regions Bank or Redstone Federal Credit Union.
McDonald collected fraudulent refund checks mailed to her Montgomery apartment and provided them to Webster.
Grimes received fraudulent refund checks and power of attorney forms at the Mobile P.O. Box, had the power of attorney forms notarized, and then used them to cash or deposit the checks.
Counts Two through Nine of the indictment charge German and Webster with making false claims to the IRS.
Counts 10 through 15 charge German with mail fraud for causing or aiding others in causing the U.S. Postal Service to deliver fraudulent refund checks to the Montgomery and Mobile addresses.
Count 16 charges German, Webster, McDonald and Grimes with conspiracy to commit mail fraud against the U.S. Department of Treasury.
Counts 17 through 20 are aggravated identity fraud charges against German and Webster for using other people’s identifying information to create and file false tax returns.
The conspiracy to defraud the government and false claims charges both carry a maximum penalty of 10 years in prison and a $250,000 fine. Mail fraud and conspiracy to commit mail fraud both carry a maximum penalty of 20 years in prison and a $250,000 fine. Aggravated identity fraud carries a two-year minimum mandatory prison sentence that must be served consecutively to any other sentence imposed in the crime.
The IRS and FBI investigated the case. Assistant U.S. Attorney Russell E. Penfield is prosecuting the case.
The public is reminded that an indictment is only a charge. A defendant is presumed innocent and it will be the government’s responsibility to prove guilt beyond a shadow of a doubt at trial.
Erin Ruth Smith 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, ERIN RUTH SMITH, a 21-year-old resident of Wyola and an enrolled member of the Crow Tribe of Indians, was sentenced to a term of:
Prison: 46 months
Special Assessment: $300
Restitution: to be determined
Supervised Release: 3 years
SMITH was sentenced in connection with her guilty plea to assault resulting in serious bodily injury.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
On August 31, 2012, at approximately 8:30 a.m., SMITH was driving (alone) on the Crow Indian Reservation and then went onto Interstate 90. However SMITH was going the wrong way (eastward in the west-bound lanes). SMITH crashed head-on into a vehicle driven by F.H.M. F.H.M. had moved to the passing lane because he was trying to pass a Suburban. F.H.M.'s wife, L.M., along with two other passengers, B.B.C. and L.C., were critically injured in the crash. F.H.M. was not seriously injured and was released from the hospital later that day. Both L.M. and B.B.C. underwent emergency surgeries on the day of the crash. L.C. underwent surgery on September 4, 2012. Additional surgeries were also done. Doctors for L.M., L.C., and B.B.C signed forms indicating that their injuries met the definition of serious bodily injury. Since the crash, L.M., B.B.C., and L.C. have spent multiple days in the hospital and have had numerous surgeries.
SMITH, at the scene of the crash, admitted to drinking alcohol before the crash. She was interviewed while in the hospital recovering from injuries about the crash and the events leading up to the crash. She indicated that she was not sure how she was driving her friend's car the wrong direction on Interstate 90. SMITH, however, was certain that she had not stolen the car. SMITH recalled drinking whiskey and beer and partying with a friend before the crash. At the end of the interview with the agents, SMITH stated, "I am sorry, guys - I am sorry, never again, no more drinking and driving."
SMITH's blood was drawn shortly after the crash, and was sent to the FBI lab for analysis. The results were that SMITH's BAC was 0.235 gm/ml.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SMITH will likely serve all of the time imposed by the court. In the federal system, SMITH 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 Federal Bureau of Investigation and the Bureau of Indian Affairs.
East St. Louis Man Sentenced on Firearm OffenseRead the Press Release
Detrin C. Spraggins, 46, of East St. Louis, IL, was sentenced in federal district court on June 6, 2013, to 24 months in prison, to be followed by three years supervised release, a $100 special assessment, and a $200 fine, for unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Facts presented in court revealed that on February 15, 2012, law enforcement officers patrolling in East St. Louis, Illinois, observed individuals standing around a pickup truck parked across the street from an apartment building. As officers drove closer, the driver of the pickup truck, later identified as Spraggins, closed the driver’s door and quickly sped off. Other officers stopped Spraggins when he pulled into a driveway. Spraggins consented to a body search, where contraband was discovered. This find led to an officer opening the door of the pickup to look for additional contraband. As he did so, he noticed the butt of a firearm sticking out of the driver’s side door pocket.
The case resulted from the efforts of the WAVE (Working Against Violent Elements) Task Force, which focuses its efforts on combating violent crime in East St. Louis, Washington Park, and surrounding communities. The WAVE Task Force receives financial support through the Department of Justice’s Project Safe Neighborhoods (PSN) initiative, a nationwide federal program which endeavors to address gun-related violence.
This investigation was conducted by the WAVE Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Delano Man Indicted for Robbing Buffalo McDonald’sRead the Press Release
MINNEAPOLIS—A federal indictment unsealed yesterday charges a 34-year-old Delano man in connection with the April 24, 2013, robbery of a McDonald’s in Buffalo. Matthew Dillon Sisneros was charged with one count of interference with commerce by robbery, pursuant to the Hobbs Act, one count of possession of a firearm in furtherance of a crime of violence, one count of being a felon in possession of a firearm and one count of possession of an unregistered firearm. On June 5, 2013, the indictment was unsealed following the defendant’s initial appearance in federal court.
The indictment alleges that on April 24, 2013, Sisneros took an undisclosed amount of money from the restaurant and threatened violence against the employees with a firearm. It also alleges that on April 24, Sisneros possessed a 12-gauge, semi-automatic, sawed-off shotgun with an obliterated serial number. The shotgun, which had a barrel length of less than 18 inches and an overall length of less than 26 inches, was not registered to him in the National Firearms Registration and Transfer Record, as required by law.
Because he is a felon, Sisneros, also known as Matthew Dylan Sisneros, is prohibited under federal law from possessing a firearm or ammunition at any time. He was previously convicted in Hennepin County for aggravated robbery (2000) and offering a forged check (2001).The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute individuals who commit armed robberies of businesses engaged in interstate commerce.
If convicted, Sisneros faces a potential maximum penalty of 20 years in prison on the robbery count, a mandatory minimum penalty of ten years for possession of a firearm in furtherance of a crime of violence, and a potential maximum penalty of ten years on each of the other two counts. Any sentence would be determined by a federal district court judge.
This case is the result of an investigation by the Buffalo Police Department, the Wright County Sheriff’s Office, and the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, with cooperation from the Minnesota Bureau of Criminal Apprehension. It is being prosecuted by Assistant U.S. Attorneys Julie E. Allyn and Laura M. Provinzino.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
David Elmer Muskrat Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 6, 2013, before U.S. Magistrate Judge Keith Strong, DAVID ELMER MUSKRAT, a 35-year-old resident of Poplar and an enrolled member of a federally-recognized tribe, pled guilty to second degree murder. Sentencing has been set for September 26, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
On September 1, 2012, MUSKRAT was driving around Poplar, which is within the exterior boundaries of the Fort Peck Indian Reservation, looking for "X.X.", the now-deceased victim. Along the way, he expressed to more than one person his intent to kill X.X. if he found him. MUSKRAT was coming around a corner in Poplar and spotted X.X. walking down the street. MUSKRAT accelerated his SUV into X.X. and hit him with the vehicle. X.X. died. MUSKRAT fled the scene in the SUV.
This case is one of many examples of serious felonies the Montana U.S. Attorney's Office rigorously prosecutes in Indian Country every year. It is also a living example of the power of interagency collaboration. Five agencies devoted time, effort, and resources to this case, including the Federal Bureau of Investigation, Fort Peck Criminal Investigators, Fort Peck Department of Law and Justice, the Poplar Police Department, and the Roosevelt County Sheriff's Office, all of which resulted in justice being achieved for the victim in this case." U.S. Attorney Michael W. Cotter.
MUSKRAT faces possible penalties of life in prison and a $250,000 fine.
The investigation was a cooperative effort between the Federal Bureau of Investigation, Fort Peck Criminal Investigators, Fort Peck Department of Law and Justice, the Poplar Police Department, and the Roosevelt County Sheriff's Office.
Dart Trucking Officials Guilty in $3.6 Million Check-Kiting Bank FraudRead the Press Release
Two officials with Dart Trucking were found guilty of bank fraud charges related to a $3.6 million check-kiting scheme against Huntington Bank, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Timothy Kephart, 54, of Morrisdale, Penn, the chief executive officer of Dart Trucking, and Mark Michael, age 55, of Clearfield, Penn., the chief financial officer of Dart Trucking, were both found guilty of one count of conspiracy to commit bank fraud and one count of bank fraud.
The men are scheduled to be sentenced by U.S. District Judge Dan Aaron Polster on September 4, 2013.
Kephart and Michael were charged with kiting checks, in conspiracy with Lee Stoneburner, the president of Dart Trucking, from October 2007 until February 2010, from various accounts of Dart Trucking at Huntington Bank, in Columbiana, Ohio.
Stoneburner, 44, from the Columbiana, Ohio area, previously pleaded guilty to conspiring to commit bank fraud and is awaiting sentencing.
A check kiting scheme involves writing a series of worthless, non-sufficient funds (NSF) checks where a NSF check from one bank account was deposited into another account; another NSF check would then be written to cover the previous NSF check, concealing the overdraft from the bank, such that a false balance, or “float,” was created in the accounts. The defendants would then use that falsely created “float” to pay their bills, expenses, and to pay their salaries.
The evidence at trial established that it was a complicated, daily task to compute the amount of NSF checks which had to be written and to track what accounts had to be “covered” and from which accounts a NSF check could be written to cover a particular account. These officers involved their clerical staff in tracking and covering these checks. The use of “controlled disbursement accounts” or “CDA’s,” which allowed the company an extra day to post its expenses before they paid them, gave the company a float it could draw upon over the course of this scheme.
This case was prosecuted by Assistant United States Attorney Christian H. Stickan and Assistant United States Attorney Perry D. Mastrocola, following an investigation by the Federal Bureau of Investigation, Youngstown, Ohio.
Danville Man Convicted of Wire Fraud and Identity TheftRead the Press Release
OAKLAND – Behzad Talai Mofrad pleaded guilty in federal court in Oakland today to wire fraud and aggravated identity theft, announced United States Attorney Melinda Haag.
In pleading guilty, Mofrad admitted to utilizing the means of identification of J.W., a real, but missing, person, to obtain false identification. Mofrad also admitted to using the false identification to fraudulently lease a 2013 BMW M3 coupe automobile from an Alameda County car dealership. Mofrad had planned to sell the M3 for money but was arrested before doing so.
Mofrad, 47, of Danville, was charged by Information on April 9, 2013. He was charged with two counts of wire fraud in violation of 18 U.S.C. § 1343, and one count of aggravated identity theft in violation of 18 U.S.C. § 1028A. Under the plea agreement, Mofrad pleaded guilty to all counts.
Mofrad sentencing hearing is scheduled for October 3, 2013, before The Honorable Yvonne Gonzalez Rogers, U.S. District Judge, in Oakland, California. The maximum statutory penalty for each wire fraud count in violation of 18 U.S.C. § 1343 is 20 years’ imprisonment, and a fine of $250,000. In addition, the mandatory penalty for aggravated identity theft is two years’ imprisonment. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Rodney C. Villazor is the Assistant U.S. Attorney who is prosecuting the case with the assistance of legal assistant Vanessa Quant. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Berkeley Police Department.
Court Approves Orleans Parish Prison Reform PlanRead the Press Release
The U.S. District Court for the Eastern District of Louisiana has mandated systemic reform of unconstitutional conditions at the Orleans Parish Prison (OPP), by entering the proposed consent judgment executed by the United States, class plaintiffs, and Sheriff Marlin Gusman in Jones v. Gusman. The agreement was filed with the court by the parties on Dec. 11, 2012.
The consent judgment requires the sheriff to undertake comprehensive remedial measures to address the deficiencies in prisoner safety from physical and sexual assaults, medical and mental health care, suicide prevention, environmental and life safety and limited English proficiency services for Spanish-speaking prisoners.
The Justice Department initiated a comprehensive investigation in February 2008, under the Civil Rights of Institutionalized Persons Act, with the assistance of experts in the fields of corrections, correctional medical and mental health care and environmental safety and sanitation. The department issued comprehensive findings regarding its investigation in Sept. 2009, with an emergency update to its findings in April 2012 after conditions had not improved, and in some instances had deteriorated. In September 2012, the department intervened in the Jones case, a class action lawsuit filed by the Southern Poverty Law Center on behalf of current and future prisoners.
Today’s consent judgment requires:
• Development and implementation of policies, procedures and training regarding all aspects of correctional management, including use of force, investigations of serious incidents, prevention of prison rape and contraband prevention and detection;
• The appointment of a professional jail administrator and other key accountability measures;
• Tracking of facility data to determine where in the facility dangerous incidents are happening and what can be done to prevent further incidents;
• Adequate staffing to ensure that prisoners are safe and tha staff can perform their duties without unreasonable risk of injury;• Provision of adequate medical and mental health care, including access to necessary medications and treatment, as well as appropriate supervision and intervention for individuals who are or become suicidal;
• Improvements in sanitation and fire safety;
• Ensuring that Spanish-speaking inmates with limited English proficiency have access to Spanish language translations to enable them to access medical and other basic services;
• Appointment of an independent monitor with expertise in the areas covered by this agreement.In addition to monitoring of agreement implementation, the independent monitor will periodically inspect the facility for compliance and provide technical assistance to OPP staff regarding how to achieve compliance.
These requirements apply as long as inmates are in the current OPP facilities and will remain in place when the new jail facility is completed and put into use.
The court found that these remedies are fair, adequate, reasonable and minimally necessary to bring OPP conditions up to federal constitutional and statutory requirements. Additionally, state law-mandated city funding of OPP operations must be adequate to support the ordered remedies.
“The Justice Department is eager to move forward with proactive solutions to the inhumane conditions that have plagued the Orleans Parish Prison,” said Roy L. Austin, Jr. Deputy Assistant Attorney General for the Civil Rights Division. “The court’s order today is another step in our ongoing efforts in the City of New Orleans to promote public safety through a contemporary criminal justice system that meets constitutional standards. We look forward to working with all the necessary parties to see to it that this goal is achieved.”
The City of New Orleans was joined by the sheriff as defendant to this case on the sole question of the level of funding the city must provide. The funding dispute between the city and the sheriff is not resolved by this order.
In a hearing on Aug. 5, 2013, the court will determine the appropriate level and allocation of responsibility for OPP funding under the consent judgment between the sheriff and city, who are both defendants in Jones.
This investigation was led by the Special Litigation Section of the Civil Rights Division. For more information on the Justice Department’s Civil Rights Division, please visit www.justice.gov/crt .
Coon Rapids Man Indicted for Receiving, Possessing, Attempting to Distribute Child PornographyRead the Press Release
MINNEAPOLIS—A federal indictment unsealed recently charges a 54-year-old Coon Rapids man with receiving, possessing and attempting to distribute child pornography. The indictment, which was filed on May 20, 2013, charges Guy Edward Wheelock with seven counts of attempted distribution of child pornography, one count of receipt of child pornography, and one count of possession of child pornography. On June 4, 2013, the indictment was unsealed following Wheelock’s initial appearance in federal court.
The indictment alleges that on seven occasions between September 13 and 20, 2011, Wheelock attempted to distribute, via a computer, videos involving minors engaged in sexually explicit conduct. It also alleges that on February 2, 2012, Wheelock received videos of similar conduct, and that he possessed several videos of similar conduct.
If convicted, Wheelock faces a potential maximum penalty of 40 years for each attempted distribution and receipt count and 20 years on the possession count. Any sentence would be determined by a federal district court judge.This case is the result of an investigation by the Minnesota Internet Crimes Against Children Task Force, the Minneapolis Police Department, and the Anoka County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Manda M. Sertich and Laura M. Provinzino.
Distribution, receipt and possession of child pornography is against the law. In addition to prosecuting these cases, the Justice Department is funding a study focused on the correlation between involvement in child pornography and hands-on sexual abuse of children. A 2008 study (The Butner Study) published in the Journal of Family Violence found that up to 80 percent of federal inmates incarcerated for possession, receipt, or distribution of child pornography also admitted to hands-on sexual abuse of children, ranging from touching to rape.
This case was brought as part of Project Safe Childhood (“PSC”), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney offices and the Justice Department’s Criminal Division, Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Convicted Felon Charged in Federal Court with Possession of A FirearmRead the Press Release
PROVIDENCE, R.I. – Troy L Antley, 44, of Providence, is scheduled to make an initial appearance in U.S. District Court in Providence on June 12, 2013, charged by way of a federal criminal complaint with being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
Antley was arrested by Providence Police on June 2, 2013, following a brief but violent struggle with officers after Rhode Island State Police Colonel Steven G. O’Donnell spotted Antley allegedly walking in Providence with a firearm stuck in his waistband.
According to an affidavit in support of a criminal complaint filed with the court, Colonel O’Donnell, unarmed at the time, alerted Providence Police and continued to follow Antley while relaying his observations. Colonel O’Donnell continued to follow Antley as Antley allegedly entered a vehicle and began to drive away from the area.
According to the affidavit, responding officers quickly located and blocked Antley’s vehicle. As they did, Antley allegedly exited the vehicle and fled on foot. Officers chased and quickly apprehended Antley, who allegedly fought with two of the officers while being arrested.
A fully loaded .45 caliber handgun was recovered from the vehicle allegedly driven by Antley. The hammer on the gun was cocked back. An examination of the firearm by ATF revealed that the fiream had been reported stolen.
According to information presented to the court, Antley was previously convicted in R.I. state court on felony charges for robbery, drug trafficking and assault with a dangerous weapon.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah
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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]Cleveland Man Sentenced to Serve 33 Years in Prison for Production of Child PornographyRead the Press Release
CHATTANOOGA, Tenn. – Jerry Ray Tyler, Jr., 30, of Cleveland, Tenn., was sentenced on June 6, 2013, by the Honorable Curtis L. Collier, U.S. District Court Judge, to serve 400 months in federal prison.
Tyler was charged in a November 2012 indictment with seven counts of production of child pornography by a parent; 12 counts of distribution of child pornography; and eight counts of receipt of child pornography. In February 2013, Tyler pleaded guilty to one count of production of child pornography by a parent and one count of distribution of child pornography. Tyler faced a maximum of 30 years for each count of production of child pornography and a maximum of 20 years for each count of distribution or receipt of child pornography. Judge Collier ordered the maximum sentence for each offense and then ordered the sentences to run partially consecutive to each other to reach the total sentence of 400 months. This sentence is to be followed by 20 years of supervised release.
This investigation began with an Internet Crimes Against Children Task Force Officer acting on a lead from the National Center for Missing and Exploited Children. That lead resulted in a search of Tyler’s house, computers and cellular phone. The electronics were found to contain the images of child pornography, including images taken by Tyler of two minor children.
Agencies involved in this investigation included the Federal Bureau of Investigations, Violent Crimes Against Children Task Force, Department of Homeland Security, Investigations Division, and Bradley County Sheriff’s Office, Internet Crimes Against Children Task Force. Terra L. Bay, Assistant U.S. Attorney represented the United States.
This case was brought as part of Project Safe Childhood (PSC), a Department initiative launched in 2006 that aims to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal 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 visit ProjectSafeChildhood.gov
Christiana Mall Armed Robber Pleads GuiltyRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, and Stephen E. Vogt, Special Agent in Charge of the Baltimore Field Office of the Federal Bureau of Investigation, announced today that defendant Phillip Collier pled guilty yesterday afternoon to two counts of committing Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951, and one count of possessing and using a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c), for his role in two armed robberies of Zales Jewelry Stores located in the Christiana Mall in Newark, Delaware, and the Owings Mills Mall in Owings, Maryland.
According to facts disclosed at the change of plea hearing, on May 7, 2012, Collier, a forty-year old man from Brooklyn, New York, robbed a Zales Jewelry store in the Owings Mills Mall in Owings Mills, Maryland. During the robbery, Collier pointed a firearm at store employees and directed employees to empty approximately $116,277.82 worth of jewelry into a bag he carried into the store. Collier then ordered the employees into a back room of the store before he fled the mall.
On August 6, 2012, Collier struck again, when he robbed another Zales Jewelry store in the Christiana Mall in Newark, Delaware. Like the prior robbery, Collier pointed a firearm at store employees and directed employees to empty approximately $163,008.08 worth of jewelry into a bag he carried into the store. Collier then ordered the employees into the store’s bathroom before he fled the mall. However, before Collier could escape, Christiana Mall security notified the Delaware State Police about the robbery, and that Collier had entered another car located in the mall parking lot.
Troopers from Delaware State Police-Troop 2 immediately responded to the scene and executed a traffic stop of the car in which Collier was located. Collier was subsequently arrested in the car along with the stolen jewelry and the firearm used during the robbery. Following his arrest, the FBI, along with the Baltimore County Police Department, also linked Collier to the Owings Mills Mall armed robbery through positive fingerprint identification.
United States Attorney Charles M. Oberly, III, said of the case: "This plea reflects the outstanding work of the Wilmington FBI office, the Delaware State Police, the Baltimore County Police Department, and Jamie McCall, the AUSA handling the prosecution, in the apprehension and conviction of a particularly brazen and dangerous offender, who carried out his crimes in crowded malls, risking the lives of patrons and employees of Zales Jewelry Stores.”
Individuals who commit violent criminal acts with handguns in Delaware and Maryland will always be a priority for the FBI”, said Special Agent in Charge Stephen E. Vogt. “Our law enforcement partners in both states, along with security personnel in Delaware, did an outstanding job in investigating and prosecuting this case.”
A sentencing hearing has been scheduled by the District Court for September 19, 2013 at 9:30 a.m. At sentencing, Collier faces a maximum penalty of 20 years in prison for each Hobbs Act Robbery offense, and a maximum penalty of up to life imprisonment, with a mandatory minimum sentence of 7 years to be served consecutively to any other sentence for possessing and using a firearm in furtherance of a crime of violence.
This case was investigated by the FBI, Wilmington Resident Agency, the Delaware State Police, and the Baltimore County Police Department. Assistant United States Attorney Jamie M. McCall prosecuted the case.
For further information, contact Assistant United States Attorney Jamie M. McCall or United States Attorney Charles M. Oberly, IIICedar Rapids Dentist to Pay $100,000 to Resolve False Claims Act AllegationsRead the Press Release
Dennis Schuller, D.D.S., a Cedar Rapids dentist, has agreed to pay $100,000 to resolve allegations that he violated the False Claims Act by improperly billing the Medicaid system for certain x-rays and exams, medically unnecessary procedures, and other medically unnecessary items.
Specifically, the government alleged that, between August 1, 2008, and June 30, 2010, Dr. Schuller improperly billed for visits performed exclusively by a hygienist as well as medically unnecessary debridements and scalings. In addition, the government claimed Dr. Schuller improperly charged the Medicaid system for certain single tooth
x-rays, medically unnecessary occlusal guards, and medically unnecessary doses of desensitizing medication. The claims settled by the agreement are allegations only; there has been no admission or judicial determination of liability.“This settlement is an important step in furthering our district’s healthcare fraud enforcement program,” said Sean Berry, United States Attorney for the Northern District of Iowa. “Citizens are encouraged to report potential fraudulent conduct by healthcare providers to help our office ensure fair and efficient health systems throughout the district.”
The allegations resolved by the settlement arose from an investigation led by the Department of Health and Human Services. False claims act cases also arise under the qui tam, or whistleblower provisions of the False Claims Act. Under those provisions, a private party may file suit on behalf of the United States for false claims and share in any recovery.
Carjacker Exiled to over 12 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge Marvin J. Garbis sentenced Dwayne Frazier, age 50, of Baltimore, to 12 years in prison, followed by three years of supervised release, for carjacking. The sentence was imposed on June 3, 2013, following Frazier’s guilty plea on the first day of trial.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore City Police Department; Baltimore City State’s Attorney Gregg L. Bernstein; and Maryland Attorney General Douglas F. Gansler.
According to Frazier’s plea agreement, on August 14, 2010, Frazier, John Franklin and Troy Williams carjacked two vehicles. Franklin waved down a man driving a Buick LeSabre, telling the driver that he needed a hack (an unlicensed cab ride) to East Baltimore. The driver agreed and Franklin, Frazier, and Williams got into the car. A short time later, Frazier and his co-conspirators robbed the driver at gunpoint, taking his license, cell phone and cash, then ordered the victim out of the vehicle. Frazier and the other men then drove away in the LeSabre.
Approximately 15 minutes later, driving the LeSabre, Frazier and his co-conspirators approached three women who had just parked their Dodge Charger in the 4000 block of East Lombard Street. As the women got out of the car, Franklin and Williams walked up to the women and robbed them at gunpoint, then demanded the keys to the car. Franklin and Williams then drove away in the Charger, followed by Frazier driving the LeSabre.
Baltimore Police officers responding to the report of the armed carjacking of the Charger saw the Charger being followed by the LeSabre. Officers were able to stop the LeSabre and arrest Frazier, but the Charger sped away, eventually hitting a parked car. Police saw Franklin and Williams bail out of the Charger and run away. With the help of the Baltimore Police helicopter unit, officers located Williams under a parked car. Franklin was located nearby. Police recovered from Franklin the first victim’s driver’s license as well as a cellphone belonging to one of the women. A fully-loaded .357 caliber revolver was recovered in the same block where Franklin was arrested.
John Franklin, age 41, of Baltimore, Maryland, was previously convicted after trial and sentenced to 414 months in prison. Troy Williams, age 44, of Baltimore, pleaded guilty to his role in the scheme and is scheduled to be sentencing on June 18, 2013.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department, Baltimore City State’s Attorney’s Office and the Maryland Attorney General’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney John W. Sippel, Jr. and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who prosecuted the case.
Career Offender Pleads Guilty to Bank Robbery SpreeRead the Press Release
SAN JOSE, Calif. – James Kellems pleaded guilty today to robbing two banks in Campbell and one in Capitola between October 25, 2010, and November 12, 2010, announced United States Attorney Melinda Haag.
Kellems, 54, pleaded guilty to three counts of bank robbery in violation of 18 U.S.C. § 2113(a). Specifically, Kellems admitted that on October 25, 2010, he robbed the Bank of America branch located in the Pruneyard, Campbell, of $3,020.00; on October 30, 2010, he robbed the Bank of the West branch at 3820 Capitola Road, Capitola, of $5,400.00; and on November 12, 2010, he robbed First Bank, 790 East Campbell Avenue, Campbell of $720.00, after threatening a female teller with use of a gun.
Kellems’ sentencing hearing is set for December 5, 2013, in front of The Honorable D. Lowell Jensen, U.S. District Court Judge. As a career offender with multiple prior bank robbery convictions, Kellems’ faces up to 20 years imprisonment on each count. However, any sentence following conviction will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Thomas O’Connell and Special Assistant U.S. Attorney Meredith Edwards are prosecuting the case with the assistance of legal tech Tracey Andersen. The case was investigated by the Federal Bureau of Investigation, the Campbell Police Department, and the Capitola Police Department.
Businessman Sentenced to 2 Years in Prison for Obstructing the Irs and Concealing Property in Bankruptcy ProceedingsRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Darryl A. Stuckey, age 48, formerly of Fort Washington, Maryland today to two years in prison, followed by three years of supervised release, for corruptly obstructing the Internal Revenue Code and fraudulently concealing assets in a bankruptcy proceeding. Judge Titus also ordered Stuckey to pay restitution of $300,632.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division; Judy A. Robbins, United States Trustee for Region 4, which includes the District of Maryland; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
Obstructing the IRS
According to his plea agreement, from 1996 to 2009, Stuckey served in various roles in companies that he caused to be created or purchased. Between 2004 and 2009, Stuckey engaged in a scheme to obstruct the IRS from determining his income. For example, instead of using his personal bank accounts, Stuckey used corporate bank accounts and credit cards from his businesses to pay for the majority of his personal expenses, such as gambling, child support, medical expenses, shopping, travel, gifts and entertainment.
From 2004 to 2009, although Stuckey received substantial income from the businesses he controlled, he did not file individual or corporate federal tax returns, and did not pay any federal income taxes, state income taxes, or self-employment taxes. In fact, Stuckey admitted that he had not filed individual or corporate federal tax returns since 1993.
In 2009, Stuckey caused a business he purchased, CTI/D.C., to end its use of an outside company to manage its payroll. Although Stuckey continued to have CTI/D.C. deduct Federal Insurance Contribution Act (FICA) taxes, federal income taxes and other items from the employees’ paychecks, he failed to pay over to the IRS the FICA and federal income taxes that were withheld. As a result of Stuckey’s actions, the tax loss was $300,632.
Concealing Bankruptcy Assets
In 2007 Stuckey caused a business he organized, Yekcuts, LLC, to file for bankruptcy. Stuckey caused Yekcuts to file a schedule of assets that failed to disclose a company bank account, and to falsely claim that Yekcuts received no gross income in 2005, 2006 and 2007.
In May 2007, Stuckey fraudulently transferred and concealed real property located at 12301 Longwater Drive, Mitchellville, Maryland, which belonged to the Yekcuts bankruptcy estate. Specifically, Stuckey caused Yekcuts to enter into a promissory note with another individual, pursuant to which Yekcuts borrowed $130,000 in exchange for a security interest in the real property. Yekcuts never sought the required permission from the bankruptcy court to enter into the loan. Stuckey directed that $121,893 of the loan proceeds be distributed as follows: $10,000 to an individual, $9,000 to a Yekcuts bank account; and $102,893 to an account for which Stuckey was the sole signatory. Within 10 days of the deposit of the funds into the accounts, Stuckey withdrew $108,380.93 from the latter bank account.
In June 2007, after learning about the loan involving the Longwater Drive property, counsel for one of the Yekcuts creditors obtained a court order to depose Stuckey. Stuckey immediately caused Yekcuts to move to dismiss its bankruptcy, which the court denied. During the subsequent deposition, the government contends that Stuckey lied about the loan, his ownership interest in Yekcuts, compensation received from and expenses paid by Yekcuts, the existence of a second bank account maintained by Yekcuts and other matters.
As a result of Stuckey’s concealment of property during the Yekcuts bankruptcy, the loss to the bankruptcy estate exceeded $120,000.
Additionally, in October 2007 Stuckey filed for personal bankruptcy. Stuckey filed false schedules with the bankruptcy court, failing to disclose his transfer in May 2007 of real property located at 11950 Autumnwood Lane, Fort Washington, Maryland into a trust fund of which he was the sole beneficiary. Stuckey also did not disclose that he served as an officer, director, partner, managing executive or proprietor of several businesses. Evidence was also presented at today’s sentencing hearing that Stuckey spent over $45,000 on jewelry and furs within months of declaring personal bankruptcy.
United States Attorney Rod J. Rosenstein praised the IRS - Criminal Investigation, FBI and the U.S. Trustee Program’s Greenbelt office for their work in the investigation. The U.S. Trustee Program is the Department of Justice component that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Mr. Rosenstein thanked Assistant U.S. Attorney Stuart A. Berman and Trial Attorney Jeffrey Bender, with the Department of Justice’s Tax Division, who prosecuted the case.
Cain faces a maximum sentence of 30 years in prison for the conspiracy and for possession with intent to distribute oxycodone. U.S. District Judge Ellen L. Hollander has scheduled sentencing for September 3, 2013 at 12:00 p.m.
United States Attorney Rod J. Rosenstein praised the DEA, HHS Office of Inspector General and the Anne Arundel and Howard County Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kenneth S. Clark, Clinton J. Fuchs and Mushtaq Gunja, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Big Spring Man Admits Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — Jacob Ray Albarado, 20, of Big Spring, Texas, appeared in federal court in Lubbock today, before U.S. District Judge Sam R. Cummings, and pleaded guilty to one count of possession of child pornography. He faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Albarado has been in custody since his arrest in March 2013. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, after befriending a minor female (Jane Doe), Albarado communicated with her through the use of his cell phone for more than one year. In late 2012, Jane Doe began a dating relationship with Albarado and ran away from her home to his apartment in Big Spring. Albarado and Jane Doe agreed to produce a video depicting the two of them engaged in sexually explicit conduct. Albarado then held Jane Doe’s cell phone and produced a video of her while she engaged in sexually explicit conduct with Albarado.
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 is being conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Big Spring Police Department. Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Berks County Man Pleads Guilty to Role in Multi-County Drug ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a 24-year-old Reading man pleaded guilty Wednesday before Senior U.S. District Court Judge A. Richard Caputo to participating in a cocaine and methamphetamine trafficking conspiracy in 2011.
According to United States Attorney Peter J. Smith, Isaac Villasenor admitted to conspiring with others to distribute and possess with intent to distribute large quantities of cocaine and more than 500 grams of methamphetamine. The conspiracy spread across Berks, Dauphin, and Schuylkill Counties during 2011.
Villasenor was indicted by a federal grand jury on November 8, 2011, as a result of an investigation by the Drug Enforcement Administration(DEA) and the Pennsylvania State Police.
The plea agreement, if accepted by the court, calls for Villasenor to be sentenced to not less than seven years in prison and not more than eight years in prison. Judge Caputo scheduled sentencing for September 10, 2013.
Two co-defendants in the case previously pleaded guilty to participating in the drug conspiracy. Jose Sandoval-Martinez, the leader of the drug operation, was sentenced to 10 years in prison. Ivan Villasenor, Isaac’s brother, is scheduled to be sentenced later this month.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.Baltimore Man Sentenced to over 7 Years in Prison for Infringing the Copyrights of More Than 1,000 Commercial Software ProgramsRead the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Naveed Sheikh, age 32, of Baltimore, today to 87 months in prison, followed by three years of supervised release, for conspiring to and infringing copyrights by illegally reproducing and distributing over 1,000 copyrighted commercial software programs. Judge Bennett entered an order requiring Sheikh to forfeit $4 million, the total value of the infringed software programs.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
“Copyright infringement is not a victimless crime,” said HSI Baltimore Special Agent in Charge William Winter. “Intellectual property theft costs U.S. businesses billions of dollars each year and accounts for the loss of American jobs and innovation. HSI will continue working with our law enforcement and private industry partners to pursue criminal organizations that are engaged in this type of illegal activity.”
According to Sheikh’s guilty plea, from February 2003 to June 2008, Sheikh conspired to infringe copyrights by reproducing and distributing over 1000 copyrighted commercial software programs worth $4 million. Sheikh recruited and compensated co-conspirators, directed the actions of other co-conspirators, obtained infringing copies of software that were used for distribution, and planned and organized the activities of the conspiracy. Sheikh created multiple websites through which the infringing software was sold. Sheikh advised purchasers that the programs offered for sale were not legal because they were copies of original software programs or “cracked” versions and could not be registered with the legitimate companies that developed the software programs and held copyrights covering the software. Sheikh rented computer server space in Scranton, Pennsylvania, and hosted the websites with the infringing software, on computers in Scranton, Pennsylvania, and at his home in Bel Air, Maryland.
Sheikh advised purchasers that software programs could be mailed to purchasers on compact discs and downloaded from the internet. Sheikh requested that purchasers send money orders for infringing software to a P.O. box he maintained in Towson, Maryland. Sheikh also permitted customers to pay for infringing software through credit card charges and electronic fund transfers. In order to process the electronic payments, Sheikh and his co-conspirators used the credit card processing accounts for a defunct business previously owned by Sheikh’s family, and caused monies from the software sales to be deposited into accounts previously associated with the business. Some of the individuals who worked for Sheikh were located overseas and could assist with overnight projects. Sheikh and other conspirators posed as other individuals when corresponding with customers by email. Sheikh did not report the income from the copyright infringement scheme on his tax returns. During the time of the conspiracy, Sheikh used services such as Western Union to transmit money outside the United States, particularly to Pakistan.
The copyrighted works copied and sold illegally included Microsoft Office, Microsoft Money 2006 Small Business, Adobe Acrobat, Adobe Photoshop and Adobe After Effects Pro 7.0, Veritas NetBackUp Pro 5.1, Solid Works Office 2000 Premium, Quicken Premier Home and Business 2006 and Apple Mac OSX Panther 10.3 and Microsoft Windows XP Professional with SP2.
In meetings with federal prosecutors and agents during the course of the investigation, Sheikh made numerous false statements in order to obstruct the investigation. For example, Sheikh claimed that he had rented computer space to another individual, whom Sheikh believed was selling computer training programs. Sheikh falsely said that he did not learn that this individual was selling copyright infringing software until 2008. Sheikh further claimed that he had recorded phone conversations with this individual in an effort to assist the government investigation. Through his attorney, Sheikh provided the fraudulent recordings that he created. During the Fall of 2010, the government engaged in plea negotiations with Sheikh. In November 2010, shortly before the deadline for Sheikh to reach an agreement with the government or be charged, Sheikh left the United States for Pakistan. When he re-entered the U.S. in January 2012, Sheikh was carrying electronic media containing evidence that he and his co-conspirators were responsible for the sales of infringing software.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the FBI and U.S. Postal Inspection Service for their work in the investigation and thanked the Business Software Alliance (BSA) and Microsoft Corporation for their assistance. Mr. Rosenstein commended Assistant United States Attorneys Harry M. Gruber and Martin J. Clarke, who prosecuted the case.
Anadarko Man Pleads Guilty to Filing False ReturnRead the Press Release
Oklahoma City, Oklahoma - On June 5, 2013, RANDEL L. STONE, 43, of Anadarko, Oklahoma, pled guilty to making a false statement on a Federal income tax return, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
On May 13, 2013, Stone was charged in a one-count Information with filing a false federal income tax return because he received substantially more income than he reported on his return.
In 2007 and 2008, Stone owned and operated a business called A Plus, Inc. which did chemical spraying on trees and lawns. At today’s plea hearing, Stone admitted that his 2008 federal tax return was false because he did not report more than $100,000 that he should have claimed as income on the return. Stone further admitted that the income he did not report was money paid to A Plus from Public Service Company of Oklahoma ("PSO").
At sentencing, Stone faces up to three years in federal prison and a $250,000 fine. As part of a plea agreement, Stone has agreed to pay restitution to the IRS in the amount of his criminal conduct. The court will determine the specific amount of restitution due to the IRS at sentencing, which will take place in approximately 90 days. Also, as part of a plea agreement, Stone agreed to pay restitution to PSO in the amount of $290,000. That amount reflects the remaining balance of a civil judgment entered against Stone, based on PSO’s claims that Stone obtained money through false A Plus invoices.
This case is the result of an investigation conducted by IRS Criminal Investigation, and is being prosecuted by Assistant United States Attorney, Chris M. Stephens.
Albuqueruqe Man Arrested on Federal Drug Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Jose A. Martinez, 40, of Albuquerque, N.M., made his initial appearance in federal court this morning on a criminal complaint charging him with possession of heroin and cocaine with intent to distribute and possession of firearms in furtherance of a drug trafficking crime. Martinez remains in custody pending a detention hearing scheduled for June 11, 2013.
Martinez was arrested last night by the DEA after officers of the Bernalillo County Sheriff’s Office executed a state search warrant at his residence on the west side of Albuquerque and seized two kilograms of heroin, a kilogram of cocaine and 17 firearms.
If convicted on the drug trafficking charges in the complaint, Martinez faces a mandatory minimum of ten years to a maximum of life in prison. If convicted on the firearms charges, Martinez faces five years in prison to be served consecutive to any sentence imposed on the drug trafficking charges. 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 office of the DEA and the Bernalillo County Sheriff’s Office and is being prosecuted by Assistant U.S. Attorney Joel R. Meyers.
Wednesday 5 June 2013
White River Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a White River, South Dakota man convicted of Abusive Sexual Contact was sentenced on June 3, 2013 by U.S. District Judge Roberto A. Lange.
Francisco White Buffalo, age 35, was sentenced to 60 months in custody, 5 years of supervised release, and $100 to the Federal Crime Victims Fund.
White Buffalo was indicted by a federal grand jury on August 22, 2013 and pled guilty to the charge on March 18, 2013.
The conviction stems from an incident that took place on August 15, 2012, when White Buffalo had sexual contact with the victim.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
White Buffalo was remanded to the custody of the U.S. Marshal.
West Fargo Man Sentenced for Possessing Child PornographyRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on June 5, 2013, Mark Robert Perry of West Fargo, N.D., was sentenced before U.S. District Judge Ralph R. Erickson on a charge of possession of materials involving the sexual exploitation of minors. Perry, 53, pleaded guilty on March 11, 2013, to the charge.
Judge Erickson sentenced Perry to 71 months’ imprisonment to be followed by five years of supervised release. Perry was also ordered to pay a $100 special assessment to the Crime Victim's Fund.
This case came to attention of law enforcement on March 6, 2012, after a North Dakota Bureau of Criminal Investigation agent discovered that Perry was trading child pornography files online.
The incidents occurred between Nov. 11, 2011, and March 2, 2012, in the District of North Dakota.
The case was investigated by Homeland Security Investigations, North Dakota Bureau of Criminal Investigation and the West Fargo Police Department.
Assistant U.S. Attorney Jennifer Klemetsrud Puhl prosecuted the case.
This case was brought as a part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (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, visit www.projectsafechildhood.gov.Wallingford Man Sentenced to 30 Months in Federal Prison for Distributing Oxycodone and MarijuanaRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ROBERT MELILLO, 25, of Wallingford, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 30 months of imprisonment, followed by three years of supervised release, for distributing oxycodone and marijuana.
MELILLO 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 MELILLO conspired with others to distribute oxycodone and marijuana, and that he traveled to California on multiple occasions to purchase large quantities of marijuana, which he then shipped back to Connecticut to be distributed in the New Haven area.
On August 29, 2012, law enforcement officers stopped MELILLO upon his arrival at the San Francisco International Airport and seized $30,000 in U.S. currency from his carry-on bag.
MELILLO was arrested on February 1, 2013 and has been released on a $100,000 bond since shortly after his arrest. On March 1, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute oxycodone and marijuana.
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]Valdosta Man Sentenced for Stolen FirearmsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Robert Kier, Jr.,age 30, of Valdosta, Georgia, was sentenced on June 4, 2013 by Senior United States District Court Judge Hugh Lawson to 168 months in prison to be followed by six (6) years of supervised release after pleading guilty to Possession and Sale of Stolen Firearms and Possession of Stolen Firearms, in violation of Title 18, United States Code, Sections 922(j) and 924(a)(2) and Section 2. Mr. Kier was ordered by the Court to pay restitution in the amount of $54,145.04.
According to the plea agreement, Mr. Kier admitted that in October of 2010, he stole a Shearwater boat in Marion County, Florida, which he later sold in Coffee County, Georgia. He also admitted that he burglarized two homes in Echols County, Georgia, in October and November of 2010, where he stole 22 weapons, including rifles, shotguns, and handguns, and three Polaris all-terrain vehicles. The weapons from one burglary were recovered in Coffee County and in Florida after a co-defendant attempted to sell some of them. The ATVs were later recovered in Madison County, Florida, in a trailer stolen from Lanier County, Georgia. Mr. Kier also admitted that on Christmas Day of 2011 he stole a Ford truck in Madison County, Florida, which was later recovered following a wreck in Lowndes County, Georgia. Mr. Kier admitted that he had stolen and been involved in the sale of numerous stolen vehicles and other items of equipment from various locations in Georgia and Florida. Mr. Kier stipulated that he possessed and stole 22 firearms and other stolen property constituting a loss to the owners of that property of between $120,000.00 and $200,000.00.
“When Mr. Kier stole these guns, he guaranteed that my office would use our resources to find him and send him to prison,” said U.S. Attorney Michael Moore.
The case was investigated by the Echols County Sheriff’s Office in conjunction with a number of other South Georgia and Florida local law enforcement agencies, including the Lowndes County and Coffee County Sheriff’s Offices and the Madison and Marion County Sheriff’s Offices in Florida. The case was prosecuted by Assistant United States Attorney Robert D. McCullers.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2602.
U.S. Trustee Program Announces Successful Conclusion of Nationwide Settlement with Capital One BankRead the Press Release
Independent Auditor Finds Capital One Repaid $2.35 Million
and Corrected Flawed Process for Filing Bankruptcy ClaimsWASHINGTON – The U.S. Trustee Program (USTP) announced today that the independent auditor appointed under a nationwide settlement between the USTP and Capital One Bank (USA) N.A. has filed her final report, bringing the settlement to a successful conclusion. The auditor reported that Capital One refunded approximately $2.35 million it received after filing erroneous claims in bankruptcy cases for debts previously discharged in bankruptcy, as well as approximately $30,000 in fees and expenses incurred by consumers and bankruptcy trustees who objected to erroneous claims. The report also confirmed that Capital One corrected the flawed process that led to the filing of the erroneous claims.
As part of the settlement filed in 2008 in the U.S. Bankruptcy Court for the District of Massachusetts, Capital One had agreed to an audit overseen by an independent auditor. Former Bankruptcy Judge Melanie Cyganowski, who was selected as the auditor, filed her final report after examining more than 850,000 claims filed by Capital One in bankruptcy cases nationwide. Under the settlement, Capital One paid the auditor’s fees and costs of conducting the audit.
“The auditor’s final report shows how important it is for the USTP to address systemic wrongful conduct with enforcement actions that protect consumers nationwide and that ensure independent verification and monitoring,” stated Executive Office for U.S. Trustees Director Cliff White. “This settlement agreement achieved its objectives and serves as a model for remediating past misconduct and preventing future abuses by creditors and others, including professionals, against consumers and the bankruptcy system. I commend the auditor for her painstaking efforts to identify all victims and to ensure that Capital One has established a system to prevent this from happening again.”
The auditor’s final report revealed that, in the nearly four years prior to the settlement, Capital One filed more than 15,500 erroneous claims with a total face value of nearly $25 million. The auditor also determined that Capital One received payment of approximately $2.35 million on those erroneously filed claims – almost seven times the $340,000 originally alleged – and fully refunded those distributions to consumers in bankruptcy or to their bankruptcy estates. Further, the report confirmed that Capital One reimbursed approximately $30,000 in fees and expenses incurred by debtors and trustees in objecting to erroneous claims.
Under the settlement, the auditor conducted additional compliance audits of all claims filed by Capital One during the two-year period following the settlement to ensure that the company had corrected the process that led to the filing of the erroneous claims for previously discharged debt. The auditor determined that, in the two years following the settlement, Capital One filed fewer than 150 erroneous claims out of more than 250,000 claims filed.
The case is United States Trustee v. Capital One Bank (USA), N.A., Adversary Proceeding No. 08-01272 (Bankr. D. Mass.).
The USTP is the component of the Department of Justice that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411Two Triadelphia Residents Indicted on Firearms ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
WHEELING, WEST VIRGINIA —United States Attorney William J. Ihlenfeld, II, announced that:
SCOTT P. CORKRAN, JR., age 24, of Triadelphia, West Virginia, was named in a three-count Indictment charging him with “Felon in Possession of a Firearm,” “Possession of a Firearm with an Obliterated Serial Number,” and “Drug Abuser in Possession of a Firearm.” The Indictment also seeks the forfeiture of two firearms and ammunition. If convicted, CORKRAN faces up to 7 years imprisonment and a $500,000 fine. This case will be prosecuted by Assistant United States Attorney David Perri.
BRIAN BEHRENS, age 44, of Triadelphia, West Virginia, was named in a one-count Indictment charging him with “Felon in Possession of a Firearm” on November 20, 2012, in Ohio County. The Indictment also seeks the forfeiture of the Remington firearm. If convicted, BEHRENS faces a maximum exposure of 10 years imprisonment and a $250,000 fine. This case will be prosecuted by Assistant United States Attorney Stephen Vogrin.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and
Explosives.Two Plead Guilty in Federal Court to Distributing Child PornographyRead the Press Release
Each Defendant Faces Up to 20 Years in Federal Prison
FORT WORTH, Texas — Latona E. Long, 27, of Greenville, Texas, and Michael M. Bodie, 41, of North Richland Hills, Texas, each appeared today before U.S. Magistrate Judge Jeffrey L. Cureton and pleaded guilty to one count of distribution of child pornography. Bodie was arrested in February 2013 and Long was arrested the following month on related charges outlined in criminal complaints, and they have been in custody since that time. They each face a maximum statutory penalty of not less than five or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Sentencing is set for November 12, 2013, before U.S. District Judge Terry R. Means. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in February 2013, FBI agents executed a search warrant at Bodie’s home, regarding his use of a Yahoo email account that was being used to send and receive images of child pornography. Bodie admitted that he did use that account to send and receive child pornography and that he had corresponded via Yahoo email, with a person, L.L., now known to be Long.
In February 2013, FBI agents and task force officers met with Long at her home regarding her use of a Yahoo email account that was used to send and receive child pornography. Long also said that she had corresponded via Yahoo Instant Messenger with a person she knew as M.B., now known as Bodie, and that during their communications, she sent Bodie an image of child pornography.
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 is being conducted by the FBI. Assistant U.S. Attorney Aisha Saleem is in charge of the prosecution.
Two Men Sentenced to Prison for the Armed Robbery of A Pawn Shop and Related ChargesRead the Press Release
CHARLOTTE, N.C. – On Tuesday, June 4, 2013, Chief U.S. District Judge Frank D. Whitney sentenced two men on charges stemming from the 2011 armed robbery of a pawn shop located on Central Avenue, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney Tompkins in making today’s announcement.
James Powell, IV, 23, of Mint Hill and Demontrez Lamont Dobie, 22, of Charlotte were sentenced to 162 months and 91 months in prison, respectively. Powell and Dobie were each also ordered to serve three years under court supervision upon release from prison.
According to court documents and yesterday’s sentencing hearing, Powell and Dobie robbed the Central Avenue Jewelry and Pawn on the morning of June 30, 2011, during business hours. Powell and Dobie, who wore wigs and sun glasses during the commission of the robbery, entered the pawnshop carrying two suit cases. Court records indicate that as Powell approached the counter, he pulled out a .380 caliber handgun and pointed it at the chest of one of the store employees. The defendants put the two employees of the store on the floor, and Dobie tied up the victims with shoe strings. According to court documents and court proceedings, while one of the victims was tied, Powell pistol whipped the victim in the head. Dobie struck the same victim in the ribs while the victim was tied up. During the robbery, Dobie stole the pawn shop employees’ .357 Magnum revolver, and brandished it. Powell then took cell phones and electronics belonging to the pawn shop and put them in the suitcases, all according to court documents. As law enforcement officers were responding to the scene, Powell and Dobie abandoned the suitcases, and, still armed, ran out the back door of the pawn shop. Law enforcement apprehended Powell and Dobie within a short distance from the pawn shop.
In June 2012, Dobie pleaded guilty to Hobbes Act robbery and aiding and abetting, and to possession and brandishing a firearm during and in relation to a crime of violence and aiding and abetting. Powell pleaded guilty in August 2012 to conspiracy to commit interference with commerce by threat or violence (Hobbes Act conspiracy), Hobbes Act robbery and aiding and abetting, possession of firearm by felon, and possession and brandishing a firearm during and in relation to a crime of violence and aiding and abetting.
In announcing the sentence, Judge Whitney stated that the robbery was a very violent offense and an egregious crime. Judge Whitney observed that Powell and Dobie were “lucky that [the robbery] did not lead to death or serious injury.”
The defendants have been in federal custody in the Western District of North. Upon designation of a federal facility, Powell and Dobie will be transferred into custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
The investigation was handled by ATF and CMPD. The prosecution for the government was handled by Assistant U.S. Attorney Robert Gleason of the U.S. Attorney’s Office in Charlotte.
Two Kansas Men Plead Guilty to Federal Dog Fighting ChargeRead the Press Release
KANSAS CITY, KAN. – Two Kansas men have pleaded guilty to a federal dog fighting charge, U.S. Attorney Barry Grissom said today.
Pete Davis, Jr., 38, Kansas City, Kan., and Melvin Robinson, 42, Kansas City, Kan., each pleaded guilty to one count of transporting animals for participation in an animal fighting venture.
The two men initially were charged in a criminal complaint alleging they owned dozens of dogs – most of them pit bulls – that they trained and took to dog fights. They kept the dogs at a farm in Harrison County, Mo., and at their residences in Kansas City, Kan, and transported some of them to fights as far away as Dallas, Texas. On March 22 and 23, 2013, federal, state and local investigators served search warrants at several locations, seizing 77 dogs and six chickens.
According to court documents, an FBI investigation that began in November 2012 revealed that:
-- To train dogs for fighting, Robinson had a treadmill at his residence in Kansas City, Kan. He routinely placed a harness on a dog and chained the harness to the treadmill for several hours at a time. The treadmill was equipped with a plywood box to keep the dog on the treadmill. Robinson also put weights on the dog to strengthen it and provided caged live chickens in front of the treadmill as bait.
-- Robinson and Davis discussed betting $20,000 to $30,000 on a dog they were training for a fight scheduled to take place on March 23, 2013, in Dallas, Texas. They called such fights "dog shows."
-- On March 17, 2013, Davis and Robinson held three dog fights involving six dogs at the farm in Missouri in preparation for the dog fight in Dallas.
-- At various times during the investigation, dogs died at the farm in Missouri and their bodies were discarded.
-- On March 22, 2013, investigators followed Robinson and Davis as they traveled to a location near Tyler, Texas, for a dog fight.Sentencing is set for Sept. 9. The defendants face a maximum penalty of five years in federal prison and a fine up to $250,000.
Grissom thanked the following agencies for their work on the case: The FBI, the Kansas City (KS) Police Department, the Harrison County (MO) Sheriff's Department, the Missouri State Highway Patrol, the Texas Department of Public Safety - Narcotics and Highway Patrol, East Texas HIDTA, the FBI Dallas Division - East Texas Resident Agencies, the American Society for the Prevention of Cruelty to Animals, the Texas Parks and Wildlife Department - Game Wardens, the Texas Department of Criminal Justice - OIG, the Lindale Police Department, the Smith County Sheriff’s Office, the Dallas Police Department and the Dallas County Sheriff’s Office. He also thanked the American Society for the Prevention of Cruelty To Animals for assisting investigators by agreeing to house and care for dogs that were seized by investigators.
Three Members of Violent Newark Street Gang Indicted on Murder and Racketeering ChargesRead the Press Release
Alleged Gang Leader Charged with Six Gang-Related Killings
NEWARK, N.J. – Three alleged members of a violent Newark street gang were indicted by a federal grand jury today on charges that include murder, racketeering, kidnapping, robbery, weapons offenses and drug dealing, U.S. Attorney Paul J. Fishman announced.
Farad Roland, 28, Mark Williams, 30, and Malik Lowery, 31, all of Newark, were charged in a 27-count second superseding indictment connection with their alleged membership in The South Side Cartel, a subset of the 793 Bloods gang. Roland is charged with six counts of murder in aid of racketeering, while Williams and Lowery are each charged with one count of murder in aid of racketeering, charges which carry a mandatory minimum penalty of life in prison. The charge is a death-eligible offense subject to a decision by the U.S. Attorney General.
“As the indictment spells out, the gang members indicted today used murder and violence as tools of their criminal trade, punishing disloyal associates, intimidating rivals and silencing those they believed were cooperating with law enforcement,” U.S. Attorney Fishman said. “They presided over a reign of terror along Hawthorne Avenue for years. These charges finally assign responsibility for more than half a dozen unsolved homicides and represent the latest efforts in our ongoing pursuit of members of violent street gangs.”
“The primary objective of the FBI's investigation into the criminal enterprise known as South Side Cartel was to disrupt and dismantle one of Newark's most violent street gangs,” FBI Special Agent in Charge Aaron T. Ford said. “In conjunction with the Newark Police Department and Essex County Prosecutor's Office, the FBI and its law enforcement partners were successful in accomplishing this mission.”
Newark Police Director Samuel DeMaio stated, “I am pleased that our partnerships with our fellow law enforcement entities, particularly on the federal level, continue to prove effective tools against violent crime and habitual offenders here in Newark. Today's charges and the severity of the penalties are a testament to our combined resolve to remove these violent predators from our community. I thank all of those gathered today who played a role in today's announcement and look forward to strengthening our partnerships and multiplying our efforts.”
According to documents filed in this case and statements made in court:
The South Side Cartel has operated primarily on Hawthorne Avenue in Newark since 2002. Originally a neighborhood-based gang whose main activities were selling drugs and committing violent acts to aid the drug trafficking business, many of the gang’s members were officially brought into the Bloods gang in 2002 and 2003. As early as 2005, the gang was officially named The South Side Cartel. The gang allegedly committed numerous murders, shootings, robberies and other violent acts.
The gang based its criminal activities out of apartments located inside buildings dubbed “the Twin Towers,” located at 496-500 Hawthorne Ave. The Twin Towers were the scene of repeated narcotics and gun arrests by local law enforcement between 2002 and 2010. Many of The South Side Cartel members had tattoos depicting these buildings and the “SSC” logo, representing the gang’s initials.
At its peak, the South Side Cartel had about 20 members or associates, many of whom have since been killed in gang-related murders or who are serving prison sentences in state and federal prisons for gang-related crimes. Defendants Roland, Williams and Lowery represent the last of the leadership of the gang.
South Side Cartel leader Amin Roland, 35, (the brother of defendant Farad Roland) was convicted by a jury in July 2012 of being a felon in possession of a firearm. On Nov. 29, 2012, U.S. District Court Judge Salas sentenced Amin Roland to the statutory maximum prison sentence of 10 years.
“These three defendants posed a clear danger to the people of Essex County,” Acting Essex County Prosecutor Carolyn A. Murray said. “Their brazen use of violence as part of their drug and gang trade is stunning. We are pleased that we were able to work with our federal partners to bring them to justice and now look forward to the final resolution of their cases.”
“Today's indictment should serve as an example of our commitment to the hard-working, law-abiding citizens of this community,” Newark's Chief of Police Sheilah Coley said. “In forming these alliances with other local, county, state, and federal law enforcement agencies the Newark Police Department has transcended all departmental and jurisdictional boundaries in the interest of public safety. We are working together seamlessly to produce positive results in our violent crime reduction efforts and will continue our joint ventures aimed at improving the quality of life here in our City.”
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Ford; the Newark Police Department, under the direction of Police Director DeMaio and Chief Coley; and Acting Essex County Prosecutor Murray, for the investigation leading to the today’s indictment.
The government is represented by Assistant U.S. Attorneys Robert L. Frazer and Andrew J. Bruck of the Organized Crime/Gangs Unit in Newark.13-233
Defense counsel:
Farad Roland: Donna Newman Esq., New York, N.Y.
Williams: James Patton Esq., Livingston, N.J.
Lowery: John Azzarello Esq., Chatham, N.J.
The counts in the indictment carry the following maximum potential penalties:Count
Offense
Defendant(s)
Maximum Penalties
Racketeering
All three defendants
Life in prison; $250,000 fine
2
Racketeering Conspiracy
All three defendants
Life in prison; $250,000 fine
3
Murder in Aid of Racketeering (Leaks Murder)
Roland
Life in prison or death penalty; $250,000 fine
4
Murder in Aid of Racketeering (Stewart Murder)
Roland
Life in prison or death penalty; $250,000 fine
5
Murder in Aid of Racketeering (“Fu” Murder)
Roland
Life in prison or death penalty; $250,000 fine
6
Murder in Aid of Racketeering (“Dubird” Murder)
All three defendants
Life in prison or death penalty; $250,000 fine
7
Murder in Aid of Racketeering (Silas Murder)
Roland
Life in prison or death penalty; $250,000 fine
8
Murder in Aid of Racketeering (Prince Murder)
Roland
Life in prison or death penalty; $250,000 fine
9
Use of Firearm in Furtherance of Violent Crime (Silas Murder)
Roland
Life in prison; $250,000 fine
10
Use of Firearm in Furtherance of Violent Crime (Prince Murder)
Roland
Life in prison; $250,000 fine
11
Carjacking (Mercedes Benz)
Roland, Williams
15 years in prison; $250,000 fine
12
Use of Firearm in Furtherance of Carjacking
Roland, Williams
Life in prison; $250,000 fine
13
Carjacking (BMW)
Williams, Lowery
15 years in prison; $250,000 fine
14
Use of Firearm in Furtherance of Carjacking
Williams, Lowery
Life in prison; $250,000 fine
15
Hobbs Act Robbery
Roland, Lowery
20 years in prison; $250,000 fine
16
Use of Firearm in Furtherance of Hobbs Act
Roland, Lowery
Life in prison; $250,000 fine
17
Assault with a Deadly Weapon in Aid of Racketeering
Roland
20 years in prison; $250,000 fine
18
Use of Firearm in Furtherance of Violent Crime
Roland
Life in prison; $250,000 fine
19
Assault with a Deadly Weapon in Aid of Racketeering
Williams
20 years in prison; $250,000 fine
20
Kidnapping in Aid of Racketeering
Williams
Life in prison; $250,000 fine
21
Use of Firearm in Furtherance of Violent Crime
Williams
Life in prison; $250,000 fine
22
Use of Firearm in Furtherance of Violent Crime
Williams
Life in prison; $250,000 fine
23
Assault with a Deadly Weapon in Aid of Racketeering
Williams
20 years in prison; $250,000 fine
24
Use of Firearm in Furtherance of Violent Crime
Williams
Life in prison; $250,000 fine
25
Assault with a Deadly Weapon in Aid of Racketeering
Roland
20 years in prison; $250,000 fine
26
Use of Firearm in Furtherance of Violent Crime
Roland
Life in prison; $250,000 fine
27
Conspiracy to Distribute Cocaine & Heroin
All three defendants
Life in prison; $10 million fine
South Side Cartel Superseding Indictment
Tarrant County Men Sentenced in Sex Trafficking CaseRead the Press Release
FORT WORTH, Texas — Craig Jerome Gadley, Jr., 23, and Joshua Alexander Smith, 25, both of Mansfield, Texas, were each sentenced on Monday, June 3, 2013, by U.S. District Judge Terry R. Means, to 15-year federal prison sentences, following their guilty pleas last year to sex trafficking charges. Specifically, Gadley pleaded guilty to one count of sex trafficking of a minor and Smith pleaded guilty to one count of sex trafficking by force, fraud and coercion. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to plea documents filed in the case, law enforcement learned, in June 2011, that a 16-year-old female, Jane Doe #1, had been working as a prostitute for Gadley, aka “Cjay the Don,” in and around the Dallas/Fort Worth (DFW) area. Jane Doe #1 met Gadley while she was working as a stripper at a night club in Fort Worth, Texas, and he promised her that she could earn more money by working for him. Gadley gave Jane Doe #1 money and took her shopping. Although he knew she was 16-years-old, he told her he didn’t care and that she owed him for the money he had provided her.
Gadley took photographs of Jane Doe #1 in lingerie and in the nude and then posted advertisements of her on websites used to promote and advertise commercial prostitution. He drove her to hotel rooms in the DFW area and directed her to have sex with men for money. Gadley took all of the proceeds, provided her with necessities such as food and clothing, and provided condoms and hotel rooms for her to use.
Another female, 19-year-old, Jane Doe #2, who worked as a prostitute for Smith, was arrested on July 30, 2011 for prostitution, after undercover officers who saw ads for her on the Internet arranged to meet her at a hotel in Arlington, Texas.
The plea documents further state that Smith and Jane Doe #2 had dated until he convinced her that she could make a lot of money if she worked for him as a prostitute. She eventually agreed and began working for Smith in May 2011. He placed ads for Jane Doe #2 on websites that advertised prostitution and received all of the money she earned. He provided her necessities such as food, gas and clothing. He also provided her condoms and hotel rooms for her to use in the Fort Worth area.
Jane Doe #2 was fearful of Smith. While working for him, he choked her, held her against a wall, poured drinks on her head, pulled her hair and threatened to harm her. He kept pushing her to work longer hours and acquire more clients.
The case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the North Texas Trafficking Task Force, including the Arlington, Dallas and Fort Worth Police Departments.
Assistant U.S. Attorney Chris Wolfe was in charge of the prosecution.
Tampa Woman Sentenced to More Than 5 Years for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida - U.S. District Judge James D. Whittemore sentenced Nikia Williams yesterday to five and six months in federal prison for theft of government property and aggravated identity theft. As part of her sentence, the court also ordered Williams to forfeit jewelry valued at more than $110,000, traceable to proceeds of the offenses. Williams also consented to forfeit a 2007 Mercedes Benz, which she purchased using $30,000 in cash. Williams pleaded guilty on February 27, 2013.
According to court documents, Williams engaged in stolen identity tax refund fraud from at least as early as January of 2011. In excess of 150 fraudulent tax returns were electronically filed from her residence during this period. Williams was linked to additional tax returns based on her use of debit cards containing fraudulently obtained tax refunds.
This case was investigated by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Sara C. Sweeney and Amanda L. Riedel.