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15 July 2013
Licensed Gun Dealer in Jersey County Sentenced for Knowingly Selling Guns to A Drug UserRead the Press Release
Jerseyville resident John L. (“Jay”) Jones, II, 33, was sentenced in federal district for selling firearms to someone he knew to be a regular user of cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced. Jones was ordered to serve a combined sentence of 6 months home confinement followed by 12 months of incarceration and 2 years supervised following incarceration. Jones was also fined $1,000 and ordered to pay a $100 special assessment fee.
In March 2013, Jones pled guilty to a one-count Information charging that in May of 2010, Jones sold five firearms to another person, knowing and having reasonable cause to believe that the purchaser was an unlawful user of a controlled substance. Jones was formerly the operator of Discount House, Inc. – a federal firearms licensee (FFL) in Jersey County, Illinois – and was working in that capacity when he illegally sold the firearms.
This case was investigated by agents of the United States Department of Justice, Bureau of Alcohol, Tobacco, Firearms, and Explosives, working in concert with agents of the Federal Bureau of Investigation, the Internal Revenue Service, officers of the Jersey County Sheriff’s Department, and the Illinois State Police. Assistant United States Attorney Nathan D. Stump prosecuted the case.
Las Cruces Men Plead Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Mark Anthony Harriman, 45, and Agustin Abascal, 27, both of Las Cruces, N.M., pleaded guilty earlier today to methamphetamine trafficking charges in the Las Cruces federal court, announced U.S. Attorney Kenneth J. Gonzales, Joseph M. Arabit, Special Agent in Charge, El Paso Division of the DEA, Bobby Holden, Special Agent in Charge of the Las Cruces/Doña Ana County Metro Narcotics Agency, and Chief Robert W. Shilling of the New Mexico State Police.
In mid-April 2013, Harriman and Abascal were arrested on a criminal complaint alleging that they conspired to distribute methamphetamine and did distribute methamphetamine in Doña Ana County, N.M., between Nov. 2012 and March 2013. According to the criminal complaint, Harriman and Abascal sold quantities of methamphetamine to a New Mexico State Police officer who was working in an undercover capacity and an informant on several occasions during that period.
Today, Harriman entered a guilty plea to a felony information charging him with possessing methamphetamine with intent to distribute between Feb. 2013 through March 2013, and unlawfully possessing firearms and ammunition on March15, 2013. Harriman was prohibited from possessing firearms and ammunition because he previously had been convicted of attempted assault in the first degree in Honolulu, Hawaii. In his plea agreement, Harriman admitted that between Feb. 26, 2013 and March 14, 2013, he obtained methamphetamine from California and distributed it in Las Cruces. Harriman further admitted that when he was arrested on state charges on March 15, 2013, he was traveling from California with approximately two ounces of methamphetamine.
Under the terms of his plea agreement, Harriman will be sentenced to 20 years in federal prison. Harriman also will be required to forfeit nine firearms, more than 1000 rounds of ammunition, a 2002 Mitsubishi Mirage and $13,940 in cash.
During today’s proceedings, Abascal entered a guilty plea to a felony information charging him with distribution of methamphetamine. In his plea agreement, Abascal admitted selling methamphetamine on five occasions between Nov. 1, 2012 and March 7, 2013, to a person whom he later learned was an undercover officer. At sentencing, Abascal faces a sentence of not less than ten years and not more than life in prison.
Both men have been in federal custody since their arrests and remain detained pending their sentencing hearings, which have yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA, the Las Cruces/Doña Ana County Metro Narcotics Agency, and the New Mexico State Police and is being prosecuted by Assistant U.S. Attorney Renee L. Camacho of the U.S. Attorney’s Las Cruces Branch Office.
Kentucky Man Sentenced in Extortion SchemeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Middlesboro, Kentucky, man was sentenced for extortion on July 15, 2013, by U.S. District Judge Karen E. Schreier.
Justin Howard, age 25, was sentenced to 21 months in custody, followed by 1 year of supervised release, and ordered to pay restitution in the amount of $53,625.25.
Howard was indicted by a federal grand jury on September 11, 2012, for extortion. He pled guilty to the offense on April 22, 2013.
From August 2011 to July 2012, Howard made telephone calls and sent written messages to a South Dakota man in which Howard threatened to reveal information about the victim’s sexuality unless the victim paid money to Howard. In response to the threats, the victim sent numerous payments to Howard, totaling $53,625.25.The victim reported the crime to law enforcement, resulting in Howard’s arrest.
This case was investigated by the Minnehaha County Sheriff’s Office and the Federal Bureau of Investigation. U.S. Attorney Brendan V. Johnson and Assistant U.S. Attorney John E. Haak prosecuted the case.
Howard was immediately turned over to the custody of the U.S. Marshal.Kadoka Man Indicted for Burglary, Destruction of Government Property and TheftRead the Press Release
United States Attorney Brendan V. Johnson announced that a Kadoka, South Dakota, man has been indicted by a federal grand jury for allegedly unlawfully entering the Indian Health Service Clinic at Wanblee and stealing prescription pills on July 5, 2013.
Lynn Standing Bear, age 20, was indicted by a federal grand jury on July 9, 2013, for Third Degree Burglary, Destruction of Government Property and Theft in Connection with Health Care.
Standing Bear appeared before U.S. Magistrate Judge Veronica L. Duffy on July 10, 2013, and pled not guilty to the indictment. The maximum penalty upon conviction is 10 years' imprisonment and a $250,000 fine.
The charges are merely accusations and Standing Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety and the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Standing Bear was remanded to the custody of the U.S. Marshal. A trial date has been set for September 17, 2013.KC Man Sentenced to 20 Years for Illegal FirearmsRead the Press Release
Project Ceasefire
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing firearms.
Jason L. Robbins, 33, of Kansas City, was sentenced by U.S. District Judge Greg Kays to 20 years in federal prison without parole.
On Nov. 29, 2012 Robbins was convicted at trial of two counts of being a felon in possession of a firearm and two counts of possessing a stolen firearm. The court today sentenced Robbins to the maximum penalty of 10 years on each count of being a felon in possession of a firearm, and ordered those terms to be served consecutively.
On Aug. 19, 2009, Kansas City police officers were dispatched on a domestic violence disturbance where a party was armed with a firearm. According to court records, Robbins broke into his ex-girlfriend’s home and held a gun to her 9-year-old son’s head. He then took her hostage and threatened to kill her in front of her son. She testified during the trial that Robbins put the gun in her mouth so hard it split her tooth “down the middle.” She also testified that Robbins struck her twice with the gun “in the back of the head, and once on the side.” Robbins placed a gun to her head and forced her to go with him, dragging her out of the home against her will. On the street they encountered a neighbor who attempted to intervene, and Robbins threatened him with the gun as well.
When Robbins saw the police officers approaching he ran and the officers pursued him, apprehending him after a brief foot chase. A police dog located a Hi-Point semi-automatic 9mm pistol along the path where Robbins had fled. The firearm had been reported as stolen from a victim’s home earlier that day.
On May 16, 2010, Kansas City police officers observed a vehicle that they believed to be stolen. As the officers approached the car, Robbins, who had previously been seated in the driver’s seat, began running away from the officers. An officer chased Robbins and saw him pull a black handgun from his waistband and throw it on the sidewalk. Robbins was immediately placed under arrest. The handgun, a Taurus .45-caliber pistol, was loaded with nine live rounds of ammunition.
Investigators later learned that the firearm was stolen in a residential burglary on April 28, 2010, in which numerous firearms were taken.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Robbins has prior felony convictions for non-support, tampering with a motor vehicle and resisting arrest.
This case was prosecuted by Special Assistant U.S. Attorneys Jalilah Otto and Stacey Perkins-Rock and Assistant U.S. Attorney David DeTar Newbert. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kansas City, Mo., Police Department.
Project Ceasefire
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.Justice Department Statement on the Trayvon Martin-George Zimmerman CaseRead the Press Release
"As the Department first acknowledged last year, we have an open investigation into the death of Trayvon Martin. The Department of Justice's Criminal Section of the Civil Rights Division, the United States Attorney's Office for the Middle District of Florida, and the Federal Bureau of Investigation continue to evaluate the evidence generated during the federal investigation, as well as the evidence and testimony from the state trial. Experienced federal prosecutors will determine whether the evidence reveals a prosecutable violation of any of the limited federal criminal civil rights statutes within our jurisdiction, and whether federal prosecution is appropriate in accordance with the Department's policy governing successive federal prosecution following a state trial.”
Joseph Collins, Principal Attorney for Former Commodities Firm Refco, Sentenced in Manhattan Federal Court to One Year and One Day in Prison for Securities FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOSEPH P. COLLINS, formerly the principal outside attorney for the now defunct financial services company, Refco Group Inc. (“Refco”), was sentenced today in Manhattan federal court to one year and one day in prison for conspiracy, securities fraud, filing false statements with the SEC, and wire fraud, in connection with his role in the fraud underlying the collapse of Refco. The accounting fraud at Refco, once the nation’s largest independent commodities firm, cost investors and lenders more than $2.4 billion in losses. COLLINS was convicted in November 2012, after a four-week jury trial before Chief U.S. District Judge Loretta A. Preska, who imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara stated: “Joseph Collins was a lawyer deeply and corruptly enmeshed in coordinating and concealing the massive accounting fraud that ultimately led to Refco’s collapse. By aiding and abetting the commodities firm’s executives, Collins not only shirked his duties as an officer of the court and violated the ethical obligations of his profession – he broke the law.”
According to the Superseding Indictment filed in Manhattan federal court, other court documents, and the evidence presented at trial:
In August 2004 Thomas H. Lee Partners, L.P., purchased a majority interest in Refco through a $2.4 billion leveraged buyout (“LBO”) transaction. The buyout was financed with
approximately $500 million in cash from Thomas H. Lee Partners, $600 million in notes that Refco sold to private investors, and approximately $800 million borrowed from a syndicate of banks. In August 2005, Refco conducted an initial public offering (“IPO”) of its stock, which was then listed on the New York Stock Exchange. Both the LBO and the IPO were constructed and orchestrated in the context of a massive fraud scheme engineered by Phillip R. Bennett, former Chief Executive Officer and 50% owner of Refco, and others, with the knowing assistance of COLLINS. Only months after the IPO, Refco went into bankruptcy and its stock was delisted from the New York Stock Exchange.
During the relevant time period, COLLINS, then a partner at the law firm Mayer, Brown, Rowe & Maw LLP, was the primary outside counsel for Refco and Bennett. COLLINS participated in, among other things, Bennett’s scheme to falsify Refco's financial statements by hiding from Refco’s investors and auditors an enormous debt owed to Refco by a holding company partially owned by Bennett. This debt had ballooned to more than $1 billion by January 2004. On at least 17 different occasions from February 2000 through October 2005, COLLINS, and lawyers at his firm working at his direction, drafted documents that arranged for the routing – through various third parties – of more than $5.5 billion in loans from Refco to Bennett’s company. As COLLINS knew, the loans were made shortly before, and reversed shortly after, Refco’s fiscal year-ends and quarter-ends. During those brief periods, Bennett used the loans to pay down the debt his company owed to Refco, only to have the debt return once these “round-trip” loan transactions were reversed. These loans had the effect of concealing the size of Refco’s related-party debt by making it appear that the debt owed by Bennett’s company was significantly smaller than it really was.
COLLINS falsely represented to Thomas H. Lee Partners and others that all material contracts and related-party transactions had been disclosed, knowing that was untrue. In fact, documents relating to the round-trip loan transactions, including documents in which Refco guaranteed to third parties the performance of Bennett’s company – in amounts totaling billions of dollars – were never provided to Thomas H. Lee Partners. COLLINS also made affirmative misrepresentations and drafted contract terms that misled others into believing that Bennett’s holding company owed Refco no more than approximately $108 million, which COLLINS knowingly and falsely misrepresented would be repaid by the time the LBO transaction closed. In fact, COLLINS knew that Bennett’s holding company actually owed Refco at least $1 billion and that, even after the LBO, it would continue to owe Refco at least $300 million.
COLLINS also agreed with Bennett to conceal the terms of a 2002 agreement giving the Austrian bank BAWAG an approximately 47% economic interest in Refco, and further agreed to conceal Bennett’s plan to buy out BAWAG’s interest by using more than $500 million from the proceeds of the LBO. COLLINS directed others not to disclose information relating to Bennett’s buyout of BAWAG’s interest, and lied to Thomas H. Lee Partners by representing that all material contracts and related-party transactions concerning Refco had been disclosed, knowing full well that these agreements and arrangements had not been disclosed. To that end, COLLINS created fraudulent corporate documents for Refco that he provided to Thomas H. Lee Partners in order to conceal from the firm BAWAG’s true economic interest in Refco and Refco’s true financial condition.
In addition to the prison term, Chief Judge Preska sentenced COLLINS, 62, of Winnetka, Illinois, to two years of supervised release. COLLINS was originally found guilty in 2009 on charges of conspiracy to commit securities fraud, wire fraud, bank fraud, and money laundering, but that conviction was reversed by the United States Court of Appeals for the Second Circuit in January 2012.
To date, several former executives of Refco have been convicted for their participation in the $2.4 billion fraud described above:
- Bennett, 64, of Gladstone, New Jersey, pled guilty in February 2008 to all 20 charges filed against him. He was sentenced on July 3, 2008, to 16 years in prison by U.S. District Judge Naomi Reice Buchwald;
- Tone N. Grant, 69, of Chicago, Illinois – one of the former owners of Refco – was convicted at trial in April 2008 on all five counts in the Indictment against him. Grant was sentenced on August 7, 2008, to 10 years in prison by Judge Buchwald;
- Robert C. Trosten, 44, of Sarasota, Florida – the former Chief Financial Officer of Refco – pled guilty in February 2008 before Judge Buchwald to five counts charged against him in the Indictment against him. Trosten has not yet been sentenced; and
- Santo C. Maggio, formerly of Naples, Florida – the former Executive Vice President of Refco and the former President and Chief Executive Officer of Refco Securities LLC, a Refco subsidiary – pled guilty in December 2007 before U.S. Magistrate Judge Ronald L. Ellis to a four-count Information. Maggio died last year before being sentenced.
Mr. Bharara praised the work of the United States Postal Inspection Service and the Criminal Investigators of the United States Attorney’s Office, which jointly investigated this case. He also thanked the Securities and Exchange Commission and the Commodity Futures Trading Commission for their assistance in the case.
Assistant United States Attorneys Harry A. Chernoff, Michael A. Levy, and Edward A. Imperatore are in charge of the prosecution.
Jesse Shaderic Wall, Jr. Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on July 12, 2013, before Chief U.S. District Judge Dana L. Christensen, JESSE SHADERIC WALL, Jr., a 66-year-old resident of Kalispell, was sentenced to a term of:
Probation: 5 years
Special Assessment: $100
Restitution: $201,305.85
WALL was sentenced in connection with his guilty plea to wire fraud.
In an Offer of Proof filed by Assistant U.S. Attorney Timothy J. Racicot, the government stated it would have proved at trial the following:
At the time of the crimes referenced in the Indictment, WALL was a CPA in the Kalispell area. Beginning in 2008, WALL made material misrepresentations to RBM Lumber Company to induce the company to invest $350,000 with him. One RBM executive explained to law enforcement that WALL was the company's accountant and that he offered to invest some of RBM's money in mediums that would produce a higher rate of return than RBM could get from a bank. RBM agreed and began providing WALL with various sums of money at various times. According to the RBM representative, WALL created a Nevada corporation called Milestone Innovations, Inc., and the money that RBM provided WALL was invested on behalf of that Nevada entity.
WALL used the money he obtained from RBM on his struggling business, as opposed to depositing it into any interest-bearing investments. RBM's expectation was that the money would be readily available should the company need it and WALL was not given authority to tie the funds up for any extended period of time. But in February 2011, when RBM asked WALL to return the money, he was unable to do so. He told RBM that the money was invested in real estate, which was not true. In reality, WALL had spent the RBM money but was hoping to sell his house in the coming months and planned to use the proceeds from that sale to pay RBM. WALL did repay $190,000 to RBM in June 2011.
WALL was interviewed by a Secret Service agent on December 29, 2011. During the interview, WALL expressed a desire to pay RBM back, but also said he "perhaps did say something misleading to them," to induce them to part with their money.
Count I of the Indictment involved a check that WALL wrote on July 1, 2009, from a Wells Fargo Bank account in the name of Milestone Innovations, Inc., for $12,500. The check was written to "Jesse S. WALL, CPA PC," and deposited into WALL's business account at West One Bank. That deposit caused a wire communication in interstate commerce between Wells Fargo Bank in Montana and a federal reserve bank outside Montana.
The investigation was conducted by the U.S. Secret Service.
Jason Pleau to Plead Guilty as Charged in Federal IndictmentRead the Press Release
PROVIDENCE, R.I. – According to a signed Plea Agreement filed today in U.S. District Court in Providence, Jason W. Pleau, 35, will plead guilty as charged by way of a federal indictment for the robbery and murder of Woonsocket gas station manager David Main. It is alleged that Pleau robbed and shot Mr. Main on September 20, 2010, as he attempted to enter a Woonsocket bank to deposit receipts belonging to the gas station that he managed.
As required by the United States Attorneys’ Manual, the Attorney General has approved the filing of a Plea Agreement in this matter and the withdrawal of the Notice of Intent to Seek a Sentence of Death against the defendant: http://www.justice.gov/usao/eousa/foia_reading_room/usam/title9/10mcrm.htm#9-10.150
According to the court filing, Mr. Pleau will plead guilty as charged by way of an indictment returned on December 14, 2010, to conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and carrying, using, and discharging a firearm during and in relation to a federal crime of violence, death resulting.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
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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]Indianapolis Attorney Pleads Guilty to Defrauding Clients of More Than $4.5 MillionRead the Press Release
INDIANAPOLIS – Indianapolis attorney William F. Conour today entered an open plea of guilty to an information that alleged that he has defrauded more than 25 clients of more than $4.5 million since 1999. Conour, 66, pleaded guilty during a hearing before Chief U.S. District Judge Richard L. Young in Indianapolis. Sentencing has been scheduled for Oct. 17, 2013.
Conour has been in the custody of the U.S. Marshals Service since his bond was revoked on June 27, 2013. At that time, Judge Young granted the government’s motion to revoke bond after finding that Conour had breached the conditions of his bond when he dissipated assets without prior consent by the government.
The plea was announced by Jim Lewis, U.S. Attorney for the Central District of Illinois, and Robert A. Jones, Special Agent in Charge, FBI, Indianapolis Division.
Conour was initially charged with fraud in a criminal complaint filed on Apr. 27, 2012. An information was filed on Aug. 14, 2012. According to the information, Conour devoted most of his law practice to representing clients who had suffered serious injuries or death caused by construction site accidents, automobile collisions, and accidents resulting in traumatic brain injury.
The information, to which Conour plead guilty, alleged that Conour engaged in a scheme to defraud his clients from 1999 through April 2012. As part of the scheme, Conour kept a majority of his clients’ settlement proceeds for his own use and benefit. Conour did not deposit the full amount of client settlements into client ‘trust’ accounts; instead, Conour funded the trusts on a yearly basis with funds only sufficient to enable the client to receive monthly payments for a year. Further, Conour used newly obtained settlement funds to pay old settlements and debts.
The U.S. Attorney’s Office for the Southern District of Indiana has been recused in this matter. The U.S. Attorney General appointed the Central District of Illinois to handle the case prosecution. The government’s case is being prosecuted by Assistant U.S. Attorney Jason M. Bohm, Central District of Illinois, Urbana Division.
The Federal Bureau of Investigation, with assistance provided by the Indiana State Police, is conducting the investigation.
The offense of wire fraud carries a maximum statutory penalty of 20 years in prison and a fine of up to $250,000. The defendant may also be ordered to pay full restitution to victims of the offense.
Husband and Wife Sentenced for Participating in Conspiracy to Manufacture MethmaphetamineRead the Press Release
GREENEVILLE, Tenn. -- Richie Barnett, 47 and Ruth Barnett, 44, of Erwin, Tenn., were sentenced on August 5, 2013, by the Honorable J. Ronnie Greer, U.S. District Judge, for their roles in a methamphetamine manufacturing conspiracy. Richie Barnett was sentenced to serve 135 months in prison and Ruth Barnett was sentenced to serve 120 months in prison. Both Barnetts pleaded guilty to a November 2012 federal indictment charging them with conspiracy to manufacture methamphetamine.
The Barnetts conspired to manufacture methamphetamine using a “shake-and-bake” process. Richie Barnett was the primary methamphetamine cook. He admitted to cooking methamphetamine over 40 times. Both individuals obtained equipment and precursors used in the manufacture process. Each Barnett received a sentencing enhancement for an infant child being placed at risk of harm as the result of being present at their residence while a portion of a methamphetamine manufacturing process was taking place.
The indictment and subsequent convictions of the Barnetts were the results of an ongoing and collaborative investigation conducted by the Unicoi County Sheriff’s Department, Erwin Police Department, Washington County Sheriff’s Department, First Judicial District Drug Task Force, Tennessee Bureau of Investigation, and Drug Enforcement Administration. Assistant U.S. Attorney J. Christian Lampe represented the United States.
U.S. Attorney Bill Killian commended the hard work and joint cooperation of the law enforcement agencies who worked on the investigation. “I appreciate the diligent efforts by all agencies involved to bring this and related conspiracies to an end. They are to be commended for their dedication to combatting the many harmful effects that methamphetamine has on our communities.”
Gang Member Is Thirteenth to Plead Guilty in Dodge City Racketeering CaseRead the Press Release
WICHITA, KAN. – A Dodge City gang member has pleaded guilty to conspiring to commit assaults with dangerous weapons in connection with a federal racketeering case, U.S. Attorney Barry Grissom said today.
Alfonso Banda-Hernandez, 21, Dodge City, Kan., pleaded guilty to two counts of conspiracy to commit assaults with dangerous weapons, which were violent crimes in aid of racketeering. In his plea, he admitted he was a member of the Los Carnales Chingones gang affiliated with the Norteno gang on March 30, 2011, when he conspired to commit an assault with a firearm against George Gonzalez; and in April 2010 when he conspired to commit an assault with a beer bottle against a member of a rival gang.
In his plea, Banda-Hernandez admitted that on March 30, 2011, he and three other Norteno gang members encountered a Sureno gang member named George Gonzalez at a Love’s convenience store in Dodge City. Banda-Hernandez and the other Nortenos began throwing gang signs at Gonzalez and attempting to start a fight. Later that day, they again encountered Gonzalez and chased his car. One of the Nortenos fired shots at Gonzalez’s car.
Banda-Hernandez also admitted that in April 2010 he was with other Norenos when they encountered a member of the rival Sureno street gang in an alley in Dodge City. During a fight, one of the Nortenos used a beer bottle to strike a Sureno gang member in the head, injuring him.
Sentencing is set for Sept. 30. He faces a maximum penalty of three years in federal prison and a fine up to $250,000 on each count.
Banda-Hernandez was one of 23 Norteno members indicted in May 2012. It was only the second time a federal RICO Act indictment (Racketeer Influenced and Corrupt Organizations Act) had been filed in Kansas. Banda-Hernandez is the thirteenth defendant in the case to enter a guilty plea.
Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff’s Office, the Kansas Bureau of Investigation, Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney Aaron Smith for their work on the case.
Former Scituate Resident Pleads Guilty to Possessing and Distributing Child PornographyRead the Press Release
PROVIDENCE, R.I. – Robert Brown, Jr., 42, formerly of Scituate, pleaded guilty in federal court in Providence today to possessing nearly 2,300 images and more than 30 videos depicting child pornography involving prepubescent children, announced United States Attorney Peter F. Neronha and Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Brown pleaded guilty as charged in a federal indictment returned in December 2012 to three counts of distribution of child pornography and one count of possession of child pornography. No plea agreement was filed in this matter.
According to information presented to the court, beginning in September 2009, an undercover FBI agent from the San Diego Division logged on to online file sharing programs often used for the sharing of child pornography. The agent was friended by Brown and was permitted by the defendant to access his files. On at least three occasions, the FBI agent accessed Brown’s files and downloaded files containing images and videos depicting child pornography.
The investigation revealed that Brown was accessing and sharing the files from an Internet address subscribed to him at his Scituate residence. In May 2010, FBI agents executed a court authorized search of Brown’s residence and seized three laptop computers, 19 hard drives and portable digital storage memory cards, computer disks and thumb drives, a web camera and a digital camera.
A forensic examination by the National Center for Missing and Exploited Children of the items seized revealed 2,297 images and 32 videos containing images of known children identified in 80 series depicting child pornography.Brown, who is currently free on unsecured bond, is scheduled to be sentenced on October 23, 2013. At sentencing, Brown faces statutory penalties of a minimum mandatory 5 years and up to 20 years in federal prison followed by a mandatory 5 years of supervised release for distribution of child pornography; and up to 10 years in prison followed by a mandatory 5 years of supervised release for possession of child pornography.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
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]Former Marion, Virginia Police Chief Pleads Guilty to Drug Conspiracy ChargeRead the Press Release
ABINGDON, VIRGINIA -- - United States Attorney Timothy J. Heaphy announced today that the former Chief of Police in Marion, Virginia pled guilty today in the United States District Court for the Western District of Virginia in Abingdon to a charge involving the distribution of methamphetamine, cocaine, oxycodone and hydrocodone.
Michael Dean Roberts, a.k.a., “Fireball”, age 54, of Saltville, Va., entered a plea of guilty to a one-count Information charging conspiracy to distribute methamphetamine, cocaine, oxycodone and hydrocodone. Roberts faces a potential maximum sentence of up to 20 years imprisonment and a potential fine of $1,000,000.
According to evidence presented at the guilty plea hearing by Assistant United States Attorney Zachary Lee, Roberts was involved in the distribution of cocaine, methamphetamine, oxycodone and hydrocodone between 2006 and June 2013, all while employed as the Chief of Police of the Marion, Virginia Police Department. As part of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Virginia State Police, and the Washington County Sheriff’s Department, law enforcement officers utilized a confidential informant to obtain hydrocodone pills from Roberts on three separate occasions in May and June of 2013.
The investigation determined that Roberts was involved in the distribution of at least 7,331 hydrocodone pills, 365 grams of methamphetamine, and small amounts of cocaine and oxycodone. The investigation further determined that Roberts used his position as chief of police to obtain some of these drugs from the Marion Police Department evidence room.
Sentencing has been set for October 9, 2013 in the United States District Court for the Western District of Virginia in Abingdon.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the Virginia State Police, the Drug Enforcement Administration, and the Washington County Sheriff’s Department. Assistant United States Attorney Zachary Lee is prosecuting the case for the United States.
Former Kent, Washington Attorney Pleads Guilty to Child Pornography OffensesRead the Press Release
A family law attorney who previously practiced in Kent, Washington, pleaded guilty today in U.S. District Court in Seattle to production of child pornography, receipt of child pornography and possession of child pornography, announced U.S. Attorney Jenny A. Durkan. DAVID SCOTT ENGLE, 49, of Maple Valley, Washington was arrested in November 2012. ENGLE, who both volunteered in and ran a business involving youth baseball, has been incarcerated since his arrest. ENGLE faces a mandatory minimum term of imprisonment of fifteen years when he is sentenced by U.S. District Judge James L. Robart on October 21, 2013.
According to records filed in the case, ENGLE came to the attention of law enforcement following the investigation of an international movie production company that operated a website offering DVDs and streaming videos for sale. The materials depicted young boys in sexually explicit activity. Between 2005 and 2011, ENGLE purchased 184 different items from the website. The international movie production company was put out of business when agents seized its inventory and records. The company and the owners of the company are being prosecuted for child exploitation offenses, including the production and distribution of child pornography.
After law enforcement executed a search warrant on ENGLE’s home and storage locker in November 2012, they discovered more than 500 videos of ENGLE sexually molesting a young boy under the age of 16. Law enforcement later discovered additional evidence of ENGLE sexually molesting another young boy, also under the age of 16. ENGLE is being separately prosecuted for those offenses by the King County Prosecutor’s Office. Following forensic examination of a number of computers, DVDs, thumb drives, and floppy disks, investigators determined that ENGLE was in possession of tens of thousands of images of child pornography, and thousands of videos of child pornography.The case is being investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant United States Attorney Marci Ellsworth.
Press contact for the U.S. Attorney’s Office is Thomas Bates at (206) 553-7970 or [email protected].
Former Hazelton Man Pleads Guilty to Sexually Exploiting Two ChildrenRead the Press Release
BOISE – Michael Brian Clair, 33, formerly of Hazelton, Idaho and Parker, Arizona, pleaded guilty today in United States District Court in Boise to sexual exploitation of children by production of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) agents arrested Clair at a home near Hazelton on February 22, 2013. He had been residing there for approximately two months.
According to his plea agreement, Clair came to the attention of law enforcement on October 28, 2012, when he responded to an advertisement posted on the Internet by an HSI Agent in New Orleans. While conversing via email with the agent, Clair made several statements about having inappropriate sexual contact with a 4-year-old female and discussed trading sexually explicit images. During today’s plea hearing, Clair admitted that between July 2012 and January 2013, he coerced two prepubescent minors to engage in sexually explicit conduct, for the purpose of producing visual depictions of that conduct, and transported those images from Arizona to Idaho in late December. Clair also admitted distributing child pornography to others via the Internet, including to a sex offender in Queensland, Australia.
The charge of sexual exploitation of children by producing sexually explicit images of minors is punishable by from 15 to 30 years in prison, a maximum fine of $250,000, and a minimum term of five years up to lifetime supervised release. The government is seeking forfeiture of the computer equipment used in the offense.
Sentencing is set is set for October 7, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
“Those who victimize children by producing and distributing images of children being sexually abused will be identified, investigated and prosecuted,” said Olson. “Today’s guilty plea sends the strong message that local, state and federal agencies will work together in an efficient and coordinated manner to bring these predators to justice.”
“It wasn’t enough for Clair to abuse two children, he shared his exploitation with predators around the world,” said Brad Bench, special agent in charge of HSI Seattle, who oversees Idaho investigations. “HSI places a high priority on combating this despicable crime, not only to identify and rescue child victims, but to stop their re-victimization by individuals who view and distribute Internet child pornography.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) agents from Idaho, Louisiana, Washington, and Arizona investigated the case, with assistance from the Boise Police Department, Idaho State Police, Jerome County Sheriff’s Office and the Idaho Department of Health and Welfare.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, visit www.usdoj.gov/psc. For more information about internet safety education, visit www.usdoj.gov/psc and click on the tab “resources.”
Federal Grand Jury Indicts Oregon and Pennsylvania Men for Allegedly Defrauding New Mexico-Based Company Defendants Charged with Defrauding Kinesio USA LLC of Approximately $4.3 MillionRead the Press Release
ALBUQUERQUE – A federal grand jury sitting in Albuquerque, N.M., has returned a 38-count indictment charging Johannes Jarvis, 40, of Portland, Ore., and John Hope, 65, of Huntingdon Valley, Pa., with conspiracy, wire fraud and money laundering charges, announced U.S. Attorney Kenneth J. Gonzales, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation.
The indictment charges Jarvis and Hope with a wire fraud conspiracy count, 21 counts of wire fraud and 16 counts of money laundering. The indictment alleges that from late 2007 through April 2010, Jarvis and Hope conspired to defraud Kinesio USA LLC, a New Mexico Company that sells therapeutic elastic tape and related products, and its related company, Kinesio Holding Corporation (together, “Kinesio”), of approximately $4.3 million, at least $1.2 million of which Jarvis and Hope retained as profits.
At all times relevant to the indictment, Jarvis was the Director of Marketing for Kinesio and Hope owned a printing business that operated in China that had been hired to produce marketing materials for Kinesio. According to the indictment, in late 2007 or early 2008, Kinesio directed Jarvis to locate a new manufacturer for its therapeutic elastic tape and Jarvis allegedly suggested searching for a manufacturer in China. Thereafter, Jarvis allegedly reported that he had located a suitable manufacturer in China but that Kinesio would have to work through a broker to coordinate the business relationship. In April 2008, Jarvis and Hope allegedly incorporated Grace International (HK) Limited (“Grace International”) in Hong Kong, of which they were the sole owners. Thereafter, Jarvis allegedly represented to Kinesio that Grace International would broker the relationship between Kinesio and the tape manufacturer while concealing Jarvis’s and Hope’s ownership of and involvement in the company.
The indictment alleges that relying on Jarvis’s misrepresentations, Kinesio entered into a contract with Grace International pursuant to which Kinesio paid Grace International more than $4.3 million for therapeutic elastic tape between July 2008 and Jan. 2010. It further alleges that Jarvis and Hope defrauded Kinesio by having Grace International charge Kinesio a significant undisclosed markup above the manufacturer’s price for the tape, and that Jarvis and Hope shared the profits generated by the markup.
The indictment alleges that Jarvis and Hope facilitated 16 wire transfers of money, ranging from $23,490.00 to $657,120.00, from Kinesio to Grace International between July 2008 and Jan. 2010, in addition to other wire communications that were transited to perpetuate their unlawful scheme to defraud Kinesio. It also charges Jarvis and Hope with laundering the proceeds of their unlawful scheme by depositing the money into various bank accounts. The indictment also seeks forfeiture of assets which constitute or are derived from the unlawful scheme, including residences in Portland, Ore. and Huntingdon Valley, Pa., and a money judgment against Jarvis and Hope in the amount of $1,270,075.99.
If convicted, Jarvis and Hope each face a maximum possible penalty of 20 years in prison and a $250,000 fine on the wire fraud conspiracy and each of the 16 wire fraud charges. Each also faces a maximum possible penalty of ten years in prison and a fine of either $250,000 or twice the amount involved for each of the 16 money laundering charges.
Jarvis and Hope will be summoned to appear in federal court in Albuquerque to be arraigned on the indictment on Aug. 8, 2013. Charges in indictments are merely accusations. Defendants are presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Albuquerque office of the FBI and IRS Criminal Investigation in Albuquerque and is being prosecuted by Assistant U.S. Attorney C. Paige Messec.
- Indictment
- Indictment
Fayette County Man Sentenced to Prison for Drug Law ViolationsRead the Press Release
PITTSBURGH, Pa. - A resident of Connellsville, Pa., has been sentenced in federal court to 18 months imprisonment followed by eight years supervised release on his conviction of conspiracy and violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on William Joseph Colbert, 37.
According to information presented to the court, from Aug. 25, 2012, and continuing thereafter to Aug. 27, 2012, Colbert conspired with others to distribute 28 grams or more of crack cocaine, a Schedule II controlled substance and distributed it on Aug. 27, 2012.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Colbert.
Embezzlement of Government Property and Aggravated Identity TheftRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced the sentencing of Dontreal Jenkins, age 31, and Trevayne Jones, age 37, both residents of Albany, Georgia, on July 11, 2013, before the Honorable W. Louis Sands, United States District Judge for the Middle District of Georgia.
On January 11, 2013, a jury found Mr. Jenkins and Mr. Jones guilty of Conspiracy to Embezzle Public Monies, Embezzlement of Government Property, and Aggravated Identity Theft. In addition, Mr. Jenkins was found guilty of Mail and Wire Fraud Conspiracy and Mr. Jones was found guilty of Misleading Statements.
Judge Sands sentenced Mr. Jenkins and Mr. Jones to each serve one hundred thirty-three (133) months imprisonment, followed by three (3) years supervised release, a $400.00 mandatory assessment fee, and restitution in the amount of $713,000.00 to the victim. In addition, Mr. Jenkins was ordered to pay restitution in the amount of $335,693.00 to the U.S. Department of Education.
Court records revealed that Mr. Jenkins and Mr. Jones both participated in a scheme to steal and cash United States Treasury checks. In addition, they committed identity theft by unlawfully using the names and signatures of the intended payees without the permission of the payee.
“My office will continue to use the necessary resources to prosecute individuals who steal from the taxpayers,” said U.S. Attorney Michael Moore. “When these defendants stole from our student aid program, they didn’t just take money, they threatened the dreams of deserving students.”
“Federal student aid exists so that individuals can pursue and make their dream of a higher education a reality. As the law enforcement arm of the U.S. Department of Education, ensuring that those who steal student aid or game the system for their own selfish purposes are stopped and held accountable for their criminal actions is a big part of our mission,” said Yessyka Santana, Special Agent in Charge of the U.S. Department of Education Office of Inspector General's Southern Regional Office. "That’s why I’m proud of the work of OIG special agents and our law enforcement colleagues for holding these individuals accountable for their criminal actions.”
The case was investigated by the United States Secret Service and the United States Department of Education, Office of Inspector General. The case was prosecuted by Assistant United States Attorney Jim Crane.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Dominican National Sentenced for Cocaine TraffickingRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Jose Nunez-Donastor, a/k/a Jesus Perez, a/k/a Rafael Torres Rivera, a/k/a Guineo, a/k/a Gineo, 33, who was convicted of conspiracy to possess with intent to distribute and distribution of 500 grams or more of cocaine, was sentenced to 108 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that Nunez-Donastor and other members of the conspiracy were responsible for the distribution of significant quantities of cocaine and crack cocaine throughout the Rochester area, transported by vehicle from Pennsylvania. This investigation involved court-authorized wire taps and resulted in the federal arrest of 10 defendants between May and October 2012. To date, all the defendants have been convicted. Nunez-Donastor is an illegal alien who will likely be deported to the Dominican Republic after he serves his prison sentence.
The sentencing is the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Scott Heagney, Investigators of the Rochester Police Department, under the direction of Chief James Sheppard, and the Monroe County District Attorney's Office, under the direction of Sandra Doorly.Cumberland County Child Sex Trafficker Pleads GuiltyRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today CHRISTOPHER JASON WILLIAMS, 33, of Fayetteville, North Carolina pleaded guilty before Chief United States District Judge James C. Dever, III, to two counts of Sex Trafficking of Children, in violation of Title 18, United States Code Section 1591.
U.S. Attorney Thomas G. Walker stated, “Sex Trafficking, particularly of children, will not be tolerated in our community, and the U.S. Attorney’s Office will continue to work with our partners in law enforcement to ensure that individuals who commit these crimes are found and convicted.”
WILLIAMS’ crimes were first uncovered in January of this year when a young girl reported to police that she and another child had been held against their will by the defendant and forced to perform sex acts for money. At the time of the report, she had been able to escape but was fearful for her friend, who remained in WILLIAMS’ custody. Detectives with the Fayetteville Police Department responded to WILLIAMS’ apartment and eventually located the second victim locked in his attic crawl space.
Upon interviewing the girls, detectives learned that WILLIAMS had kept them captive for weeks and months, respectively, beating them and threatening to kill them and their family members if they attempted to escape. During this time, WILLIAMS posted partialy nude photographs of the girls on various websites, advertising them for sex. Men were directed to WILLIAMS’ apartment, where the girls were forced to have sex with them for money. WILLIAMS forced both girls to have sex with him. He also made them perform sexual acts on him while recording it on video.
Once WILLIAMS was arrested, a forensic examination of his cell phone revealed hundreds of images of child pornography, many of which depicted the girls and were created by the defendant himself.
At sentencing, WILLIAMS faces not less than 10 years nor more than life imprisonment along with a fine of up to $250,000 and up to a lifetime of supervised release.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Investigation of this case was conducted by the Fayetteville Police Department. Assistant United States Attorney Leslie Cooley is prosecuting the case for the United States.
Connellsville Woman Charged with Producing Then Distributing Sexually Explicit Images of A MinorRead the Press Release
PITTSBURGH, Pa. - A Fayette County woman has been indicted by a federal grand jury in Pittsburgh on charges of production and distribution of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The six-count indictment, returned on July 9 and unsealed today following her arrest, named Lisa A. Renze, 48, of Connellsville, Pa., as the sole defendant.
According to the indictment, on or about Jan. 30, 2010, in the Western District of Pennsylvania, Renze employed, used, persuaded, induced, enticed, and coerced a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. The indictment further alleges that on or about Jan. 31, 2010, Feb. 16, 2010, March 28, 2010, May 26, 2010, and Nov. 12, 2010, Renze distributed images depicting the sexual exploitation of a minor, to an individual located in Jeannette, Pa.
The law provides for a maximum total sentence of 130 years in prison, a fine of $1.5 million, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The United States Department of Homeland Security, Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Child Abductor Sentenced to 120 Years on Child Exploitation ChargesRead the Press Release
Cape Girardeau, MO: JEFFREY D. SHELTON, Poplar Bluff, MO, was sentenced to 120 years imprisonment on three felony charges, including attempted production of child pornography, production of child pornography and possession of child pornography. He appeared Monday, July 15th, before U.S. District Judge Stephen N. Limbaugh, Jr. in Cape Girardeau.
At the time of his guilty plea, Shelton admitted that on the morning of October 24, 2012, he fled his Poplar Bluff residence with a five year old child he had abducted several hours earlier and left his cellular phone in the residence. Prior to fleeing, Shelton physically assaulted his girlfriend. A neighbor witnessed Shelton assaulting his girlfriend on the carport and called the police. After Shelton fled, the girlfriend turned Shelton’s cell phone over to police upon their arrival.
The examination of Shelton’s cell phone revealed content related to the five year old female. Shelton used the phone to produce numerous videos of the child engaged in sexually explicit conduct. The videos were produced at Shelton’s Poplar Bluff residence on October 24, 2012, in Butler County. The examiner also discovered additional visual depictions involving another child victim, a ten-year-old female. Shelton attempted to produce visual depictions of the ten year old engaged in sexually explicit conduct in October 2012, while traveling from a town in Butler County to a location in Ripley County. During the offenses, Shelton threatened both child victims with serious bodily injury.
Shelton also admitted that on October 24, 2012, he possessed a hard drive that contained more than 200 graphic image files of children engaged in sexually explicit conduct. The laptop containing the hard drive was found in his vehicle when he was arrested by authorities in Poplar Bluff.
Finally, in August 1990, Shelton appeared at an Army Court-Martial in Fort Hood, Texas, and was found guilty of rape of a child under sixteen years of age.
The Missouri State Highway Patrol, the Poplar Bluff Police Department, the Ripley and Butler County Sheriff’s Departments, the Dexter Police Department, the Federal Bureau of Investigation and the Butler County Prosecutor’s Office are commended for their efforts to jointly investigate this case. Assistant United States Attorney Abbie Crites-Leoni handled the prosecution for the Government.
Charleroi Man Sentenced to 70 Months in Prison for Possessing Images and Videos of Children Being Sexually ExploitedRead the Press Release
PITTSBURGH, Pa. - A Washington County man has been sentenced in federal court to 70 months imprisonment, to be followed by 15 years supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Kevin Zajack, 47, of Charleroi, Pa.
According to information presented to the court, on or about May 3, 2011, Zajack possessed visual depictions, namely, images and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Prior to imposing sentence, Judge Ambrose emphasized that the crime to which the defendant pled guilty is a crime of violence with real victims. She agreed with the defendant's statement that he hoped others involved with child pornography will learn from his example.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Homeland Security Investigations, Immigration and Customs Enforcement, Homeland Security Investigations for the investigation leading to the successful prosecution of Zajack.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Cedar Rapids Man Pleads Guilty to Failing to Forward Taxes He Withheld from His Employees' PaychecksRead the Press Release
A man who withheld federal taxes from his employees’ paychecks but did not forward the money to the Internal Revenue Service (“IRS”) pled guilty today in federal court in Cedar Rapids.
Eric Holub, 45, from Cedar Rapids, Iowa, was convicted of one count of failing to pay over to the IRS money he had withheld from his employees’ paychecks for federal employment taxes.
In a plea agreement, Holub admitted he was an owner of Premier Security, a private security business previously located in Cedar Rapids, and had served as the president and treasurer of the business from 2003 through 2011. Holub admitted that from January 2008 through December 2009, he was responsible for withholding income taxes and Federal Insurance Contributions Act (“FICA”) taxes from the pay of Premier Security employees and was responsible for forwarding those withholdings to the IRS. Holub admitted that, for six calendar quarters in 2008 and 2009, he failed to forward the money he withheld from his employees’ pay to the IRS, even though he knew he was required to do so. In the plea agreement, Holub further admitted he also failed to pay to the IRS other taxes owed by Premier Security from 2008 through 2011. In total, Holub admitted to failing to send to the IRS approximately $400,000 in taxes owed by Premier Security.
“IRS Criminal Investigation realizes the detrimental consequences of employment tax evasion. It results in the loss of tax revenue to the United States government and the possible loss of future social security or Medicare benefits for the employees,” said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation.Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Holub remains free on conditions previously set by the District Court pending sentencing. Holub faces a possible maximum sentence of five years’ imprisonment, a $250,000 fine, a $100 special assessment, and one year of supervised release following any imprisonment.
-more- The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by Internal Revenue Service Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-32.
Canadian Man Pleads Guilty to Conspiracy to Import EcstasyRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Richard Dixon, 35, of Toronto, Ontario, pleaded guilty before U.S. District Richard J. Arcara to conspiracy to import Ecstasy pills containing 3,4-Methylenedioxypyrovalerone, commonly referred to as “Bath Salts,” and N-Benzylpiperazine [BZP] into the United States from Canada. The charge carries a maximum penalty of 20 years in prison, a $1,000,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that on September 17, 2012, Dixon was observed by Customs and Border Protection officers wandering around the CBP administration building at the Lewiston Bridge Port of Entry in Lewiston, N.Y. toward the I-190 Northbound. During the subsequent investigation, law enforcement officers found seven duct-taped bundles wrapped in clothing which contained approximately 34,000 Ecstasy pills. The pills, which were found inside a bag belonging to the defendant, were destined for the Atlanta, Georgia area.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction Special Agent in Charge James C. Spero and Customs and Border Protection, under the direction of James Engleman, Director of Field Operations.
Sentencing is scheduled for October 28, 2013 at 1:00 p.m. before Judge Arcara.Camden Man Sentenced to 135 Months in Prison for Scheme to Steal Checks from U.S. MailRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 135 months in prison for his role in a scheme in which he and others stole business checks from the U.S. Mail in New Jersey and Connecticut, altered them, and cashed them, U.S. Attorney Paul J. Fishman announced.
Ibn Muhammad, 35, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to an information charging him with one count of bank fraud and one count of theft of mail. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Muhammad and others stole checks from curbside U.S. mailboxes in business industrial parks in Burlington, Camden, and Gloucester counties in New Jersey. Muhammad and his conspirators (including Michael A. Ingalls Jr., 35, of Camden) would then recruit a conspirator to cash the stolen checks. Once they identified a person to cash the check, Muhammad and Ingalls would then alter the stolen checks so that the name of the “payee” of the check would match the name of the recruited check casher. Muhammad, Ingalls and the check casher would then travel to a bank where the check casher would cash the check.
Muhammad, Ingalls and their conspirators cashed or attempted to cash more than 100 stolen and altered business checks worth more than $600,000. The scheme resulted in a total loss of more than $300,000 to the victim banks.
Ingalls pleaded guilty May 23, 2013, before Judge Simandle to conspiracy to commit bank fraud and possession of stolen mail. He is scheduled to be sentenced on Sept. 5, 2013. One of Ingalls’ and Muhammad’s conspirators, Andrew Fortune, 62, of Camden, was arrested March 11, 2013, on a criminal complaint and charged with conspiracy to commit bank fraud for his role in the fraudulent scheme. His case is pending.
In addition to the prison term, Judge Simandle sentenced Muhammad to five years of supervised release. Restitution will be determined at a hearing on Sept. 16, 2013.
U.S. Attorney Fishman credited inspectors from the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Acting Inspector in Charge Jean Wright, and troopers from the N.J., State Police, under the direction of Col. Rick Fuentes, for the investigation leading to today's sentence.
The government is represented by Assistant U.S. Attorneys Matthew T. Smith and Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
13-286Defense counsel: Lisa Evans Lewis Esq., Assistant Federal Public Defender, Camden
California Man, Martin Vellozzi, Charged with Creating and Selling Fake Mercedes-benz Automotive EquipmentRead the Press Release
MARTIN VELLOZZI, age 56, of Rancho Palos Verdes, California, was charged today in a one-count Bill of Information with mail fraud for his role in creating and selling non-authentic Merceds-Benz diagnostic equipment, announced United States Attorney Dana J. Boente.
According to the Bill of Information, VELLOZZI owned a LMV Industries, which offered technical information and support for Mercedes-Benz automobiles. Between about 2005 and July 2012, VELLOZZI also produced and sold unauthorized and non-authentic versions of the Mercedes-Benz Star Diagnostic System (SDS), a hand-held computer containing proprietary, confidential software. Such diagnostic devices are used by mechanics to identify problems with and assure the safety of motor vehicles employing electronic control systems. By selling non-authentic, unauthorized SDS that bore Mercedes-Benz logos and trademarks, VELLOZZI represented that the SDS he was selling were authentic and authorized by Daimler AG, when, in fact, they were not. The “real” SDS sold for between $8,300 and $22,000 each; VELLOZZI sold the non-authentic SDS, which contained Mercedes-Benz logos and trademarks, for approximately $6,000. The fake devices VELLOZZI sold were manufactured by companies located in Durham, North Carolina and Harahan, Louisiana. On some occasions, when one of the fake SDS units VELLOZZI sold would break, the Harahan-based company would provide fixes or “patches” directly to the customer. VELLOZZI also used cracking software, called “keygens” to “unlock” SDS software and make it work on his unauthorized SDS.
If convicted, VELLOZZI faces a maximum term of imprisonment of twenty (20) years, followed by up to three (3) years of supervised release, and a $250,000 fine.
(Download Bill of Information )
Cal State San Marcos Student Sentenced for Rigging Campus ElectionsRead the Press Release
Former Cal State San Marcos student Matthew Weaver of Huntington Beach was sentenced today to one year in prison for stealing the identities and passwords of more than 700 fellow students so he could rig campus elections and win the presidency.
Weaver pleaded guilty in March to wire fraud, unauthorized access of a computer and identity theft. He admitted that he used small electronic devices known as keyloggers that record a computer user's keystrokes to steal 745 student passwords. He then used many of those stolen identities to snoop in email and Facebook accounts, and to cast about 630 votes for himself and for friends who also were on the ballot.
During the hearing, U.S. District Judge Larry A. Burns said he was troubled most by the fact that Weaver – even after his arrest - attempted to frame other CSU-SM students for the election irregularities and even solicited news media coverage, contending he’d been framed.
Falsely blaming others when Weaver knew he was responsible for the crime is “the phenomenal misjudgment I just can’t get around,” the judge told Weaver. “That’s what bothers me more than the original rigging” of the election.
Judge Burns noted that the original crime might have been perceived as less egregious – even a youthful prank - except for the cover up. “He’s on fire for this crime and then he pours gasoline on it” with similar bad behavior, the judge said.
“Weaver ran roughshod over the privacy rights of hundreds of people so that he could indulge his vanity,” said U.S. Attorney Laura Duffy. “If privacy is to mean anything in a digital age, it has to be protected. A 12-month sentence adequately warns men and women like Weaver that they cannot hide from the consequences of their actions behind youth or privilege. Everyone’s rights matter – not just theirs.”
Weaver cast many of the votes from a computer located on campus. According to court records, Weaver was exposed during the final hour of the student body election, when network administrators noticed unusual voting activity associated with a computer in Academic Hall 204. The administrators were able to determine that the user, later identified as Weaver, was cutting and pasting student usernames and passwords from an Excel spreadsheet into the VOTE system and then cast those students’ votes.
Shortly after the election closed at 5 p.m., CSU-SM network administrators asked CSU-SM police officer Brian McCauley to go to the suspicious computer in Academic Hall 204. There, Officer McCauley found Weaver sitting at the computer and noted that Weaver was using the only computer in the lab whose screen was not visible to the rest of the room.
Weaver, after seeing McCauley, who was in uniform, began shutting down the campus computer. McCauley and Weaver then had a short conversation, during which Weaver said he was working on a school project, but refused to provide details. McCauley then arrested Weaver and seized his bag, which contained six keyloggers as well as other evidence of the crimes.
Weaver’s supporters have described his crime as a prank.
But in a sentencing memorandum, prosecutors dismissed that characterization, saying Weaver was fully aware of the serious ramifications of his crime and was motivated by ego and greed. In fact, a search of Weaver’s laptop showed queries like “jail time for keylogger” and “how to rig an election.”
“He wanted power through the $300,000 budget and respect through his status as CSU-SM’s student body president. But he did not want to earn it, he wanted to steal it,” prosecutor Sabrina Feve wrote in a sentencing memorandum.
“Weaver determinedly and repeatedly spied on his classmates, stole their passwords, read their secrets, and usurped their votes – and he did it with his eyes wide open,” the memorandum said. “Weaver actually researched the legality of his scheme beforehand…and then, when he knew it was completely illegal, he researched how to blame someone else.”
In fact, Weaver should have had a special appreciation for the rights of fellow students to express themselves through voting. Weaver was one of the leaders of a publication called Koala San Marcos and, when CSU-SM students protested in October 2011 against some of its content, he got the ACLU to represent the group against CSU-SM.
“Ironically, at or around the time the ACLU was defending Weaver’s freedom of thought and expression, he was actively planning to defraud other students of their ability to vote and, a just a few months later, chilling their freedom of thought and expression by logging their keystrokes and snooping through their email and Facebook accounts,” Feve wrote in the sentencing memorandum.
DEFENDANTS Criminal Case No. 13CR0821-LAB Matthew Weaver SUMMARY OF CHARGESWire Fraud, in violation of 18 U.S.C. § 1343 (Count 1); Maximum penalties: 20 years imprisonment and $250,000 fine
Unauthorized Access of a Computer, in violation of 18 U.S.C. § 1030(a)(2) and
(c)(3)(B)(ii) (Count 2)
Maximum penalties: 5 years imprisonment and $250,000 fineIdentity Theft, in violation of 18 U.S.C. § 1028(a)(7) (Count 3)
PARTICIPATING AGENCIES
Maximum penalties: 5 years imprisonment and $250,000 fineFederal Bureau of Investigation
Cal State University San Marcos Police DepartmentBurnsville Man Sentenced in Connection to Trevor Cook Ponzi SchemeRead the Press Release
MINNEAPOLIS— Earlier today in federal court, United States District Court Chief Judge Michael J. Davis sentenced a 75-year-old Burnsville man in connection to the multi-million-dollar Ponzi scheme orchestrated by Trevor Cook.
Patrick Kiley was sentenced to 240 months in federal prison on 12 counts of wire and mail fraud, one count of conspiracy to commit mail and wire fraud, and two counts of money laundering. Because the federal criminal justice system does not have parole, Kiley will spend virtually his entire sentence behind bars. Kiley and his co-defendants, who have been already sentenced, were also solely and jointly ordered to pay $155,359,411.77 in restitution to the victims of their fraud scheme. Kiley was charged in a second superseding indictment on February 22, 2012, and was convicted on June 12, 2012, after a nearly two-month trial.
On January 3, 2013, Jason Bo-Alan Beckman, age 43, of Plymouth, was sentenced to 360 months in federal prison, on 17 counts of wire and mail fraud, two counts of conspiracy to commit mail and wire fraud, four counts of money laundering, two counts of filing a false tax return, and one count of tax evasion. Gerald Joseph Durand, age 62, of Faribault, was sentenced to 240 months on 12 counts of wire and mail fraud, one count of conspiracy to commit mail and wire fraud, and two counts of money laundering, two counts of concealing a material fact from the U.S., and three counts of filing a false tax return.
Christopher Pettengill, age 56, also of Plymouth, was sentenced to 90 months in federal prison on one count of securities fraud, one count of conspiracy to commit wire fraud, and one count of money laundering.The evidence presented at trial proved that between 2005 and November of 2009, the defendants, along with Cook, defrauded investors by soliciting them to invest money in a foreign currency trading program that they alleged would earn a double-digit rate of return, typically between 10.5 and 12 percent annually, with little or no risk. They also claimed investor assets would be held in a segregated account and could be withdrawn at any time. Those representations were false.
The defendants and Cook made the investment offers through entities known as Universal Brokerage Services or bearing the acronym “UBS.” (The UBS entities had no legitimate affiliation to the global provider of financial services UBS, AG.) Cook operated the currency program through various foreign currency trading firms, including but not limited to one in Chicago and another in Switzerland.
To induce investors, the defendants and Cook, directly or through others, made false representations regarding the performance, safety, and liquidity of the currency program. They also omitted material information concerning their own backgrounds and qualifications as well as the backgrounds and qualifications of those working for them.
Once investments were made, some investors received UBS account statements that indicated that the currency program was performing as promised, while others received checks for “returns on their investments.” Both the statements and checks, however, were actually produced by the co-conspirators, the purpose being to lull investors or encourage them to make additional investments. At the same time, most investors received nothing from the true custodians of their funds.
Although some investment funds were invested in foreign currency trading, most of that trading was high risk in nature, often resulting in significant losses, none of which was disclosed to investors. Moreover, the co-conspirators concealed that the currency trading firm in Switzerland was in dire financial condition and, instead, continued to solicit investor assets to be sent to that trading firm. Co-conspirators also concealed from investors their own concerns about Cook’s operation of the currency program and alleged illegalities relative to the currency program.
In 2007, when UBS, AG, filed a trademark infringement lawsuit against Cook, Durand, Kiley, and others, the defendants began operating their scheme under other names, including but not limited to those identified by the terms “Oxford” and “Universal Brokerage FX.” They then continued to solicit investors for the currency program, utilizing telemarketing, media spots, and seminars in which they repeated the false representations noted above. Kiley, a Christian radio host, solicited investors for the scam through his radio talk show, which was carried on more than 200 stations across the country. On those programs, he regularly warned listeners to avoid financial ruin by giving their life savings to his company for investment.
Between 2005 and July 2009, the defendants, Cook, and others secured approximately $194 million in investments for the currency program. Of that amount, only about $109 million was actually sent to currency trading firms. About $52 million was paid to investors in the form of lulling payments, and approximately $30 million was diverted to fund the business and personal expenses of the defendants, Cook, and others.
In August of 2010, Cook was sentenced to 300 months in federal prison for his role in the scam. On July 18, 2011, Jon Jason Greco pleaded guilty to two counts of making false statements to federal agents, specifically lying about assets he had concealed relative to this scam. He was sentenced to ten months in prison for his crimes.
This case was the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation, with cooperation from the U.S. Securities and Exchange Commission and the Commodities Futures Trading Commission. It was prosecuted by Assistant U.S. Attorneys Tracy L. Perzel and David J. MacLaughlin.
Proceeds from the Cook fraud scheme are the subject of an ongoing investigation and recovery efforts led by the law firm Carlson, Caspers, Vandenburg, and Lindquist, through a previous appointment by Judge Davis.
This law enforcement action is in part sponsored by the interagency Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort in investigating and prosecuting financial crimes. It includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch and, with state and local partners, will investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.Buffalo Man Pleads Guilty to Food Stamp FraudRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Tofeek Albanna, 36, Buffalo, N.Y., pleaded guilty before U.S. District Judge Richard J. Arcara, to food stamp fraud. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Robert C. Moscati, who is handling the case, stated that the defendant conducted illegal electronic food stamp transactions at his store, LA Fashion, in Lackawanna, N.Y. Albanna exchanged food stamp benefits for cash. The defendant also permitted the purchase of prohibited items in exchange for food stamp benefits. Over the course of a 16 month period, Albanna obtained approximately $73,400 in fraudulent food stamp benefits from the U.S. Department of Agriculture.
Sentencing is scheduled for October 19, 2013, at 1:30 p.m. before Judge Arcara.
The plea was the culmination of an investigation on the part of Special Agents of the United States Department of Agriculture, Office of Inspector General; Special Agents of the Federal Bureau of Investigation under the direction of Acting Special Agent in Charge Richard M. Frankel; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero; and the New York State Police, Special Investigations Unit, under the direction of Lieutenant Joseph Scioli.Boise Man Sentenced in Aryan Knights Meth InvestigationRead the Press Release
BOISE – Jose Silva, 31, of Boise, Idaho, was sentenced today to 52 months in prison followed by three years of supervised release for distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. Silva appeared today before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. He pleaded guilty to the charge on March 6, 2013.
According to the plea agreement, Silva admitted that on January 10, 2012, he sold one-quarter ounce of methamphetamine to a confidential informant for $450. Forensic analysis of the methamphetamine by the Drug Enforcement Administration (DEA) laboratory determined the substance contained more than four grams of actual methamphetamine.
Silva is one of 23 people charged as a result of a long-term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation began when the task force focused on illegal drug distribution by the “Aryan Knights,” a gang active in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine. The 23 defendants have all pleaded guilty, 19 have been sentenced, and four are awaiting sentencing.
The Treasure Valley Metro Violent Crimes Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, Canyon County Sheriff’s Office, and the Idaho Department of Corrections. The Organized Crime and Drug Enforcement Task Force (OCDETF) also contributed to the investigation, including the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
Silva was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Bank Employee Charged with Bank FraudRead the Press Release
McALLEN, Texas - Edna Edith Sepulveda, 39, of McAllen, has surrendered to federal authorities following the return of an indictment alleging she perpetrated more than $200,000 in bank fraud, United States Attorney Kenneth Magidson announced today.
The indictment was returned July 9, 2013, and she made her initial appearance today, at which time she was permitted release upon posting bond.
According to the indictment, Sepulveda was a former employee of Inter National Bank of McAllen. Beginning in Jan. 10, 2006, she allegedly devised a scheme to take money from Inter National Bank by fraudulent means. She then placed the funds into the accounts of her parents allegedly intended for her own personal use, according to the allegations. The total amount of loss to Inter National Bank is $232,351.19.
If convicted, Sepulveda faces up to 30 years in federal prison as well as a $1 million fine.
This case is being investigated by the FBI with the cooperation of Inter National Bank. Assistant United States Attorney Jason C. Honeycutt is prosecuting the case.
A defendant is presumed innocent unless convicted through due process of law.Alien Smuggler Who Used Craigslist to Hire Drivers Heads to Federal PrisonRead the Press Release
McALLEN, Texas - José Gustavo Diaz-Velasquez, 30, a Mexican national who resided in the Rio Grande Valley, has been ordered to prison for alien smuggling and unlawful possession of a firearm, United States Attorney Kenneth Magidson announced today. Diaz-Velasquez entered a guilty plea on July 27, 2012.
Today, Chief U.S. District Judge Ricardo H. Hinojosa, who accepted the guilty plea, handed Diaz-Velasquez a sentence of 87 months in federal prison for both counts of conviction to be served concurrently. In handing down the sentence, Judge Hinojosa took into consideration that Diaz-Velasquez hired a number of drivers through Craigslist to transport aliens within the United States, as well as the number of aliens ultimately transported. Diaz-Velasquez is expected to face deportation proceedings following his release from prison.
Diaz-Velasquez had been the subject of an alien smuggling investigation led by Homeland Security Investigations (HSI) agents which involved the use of the Craigslist website to recruit drivers to transport undocumented aliens within the Rio Grande Valley.
The investigation began in August 2011 when HSI agents identified approximately 10 different postings believed to be connected with the organization. Through further investigation, agents were able to identify the physical location used to make the Craigslist postings as an apartment belonging to the wife of Diaz-Velasquez in McAllen. He also had a YouTube account in which a copy had been posted of a dash-cam video of a high speed pursuit which had occurred on April 24, 2011, in La Joya. Although the driver ultimately eluded capture by law enforcement, officers apprehended nine undocumented aliens from the vehicle of Diaz-Velasquez.
During the course of the investigation, agents interviewed multiple individuals who were hired by the organization to transport undocumented aliens, some of whom were able to provide information in support of the investigation.
Diaz-Velasquez was apprehended in Rio Grande City on March 14, 2012, by Border Patrol agents. On that morning, Border Patrol agents observed Diaz in the vicinity of an known alien and narcotics smuggling location in Rio Grande City. Knowing that Diaz-Velasquez was illegally in the United States and had been previously deported to Mexico, he was taken into custody.
Diaz-Velasquez ultimately admitted that he hired another individual to pick up aliens in Rio Grande City and transport them to another location within the United States.
Concerning the firearm charge, Diaz-Velasquez ultimately admitted that on or about July 17, 2011, he was an alien who was illegally and unlawfully in the United States and that he possessed a Spike’s Tactical, Model ST-15, 5.56mm rifle in and affecting commerce, which had been shipped and transported in interstate and foreign commerce.
Diaz-Velasquez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was initiated by HSI with the assistance of Border Patrol. Assistant United States Attorney Linda Requénez prosecuted the case.
Albuquerque Man to Serve Ninety Months in Federal Prison for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE –James Carney Ritterhoff, 40, of Albuquerque, N.M., was sentenced this morning to 90 months in prison followed by ten years of supervised release for his child pornography charges. Ritterhoff will be required to register as a sex offender after he completes his prison sentence. The sentence was announced by U.S. Attorney Kenneth J. Gonzales and Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas.
Ritterhoff is a former Aurora, Mo., police officer who was employed as an armed money courier in Albuquerque when he was arrested in June 2011, on a criminal complaint alleging child exploitation and pornography charges. He has been in federal custody since his arrest. In July 2011, Ritterhoff was charged in a seven-count indictment with one count of using the Internet to entice a minor to engage in sexual activity; two counts of soliciting child pornography; one count of sending apparent child pornography; two counts of receipt of child pornography; and one count of possession of child pornography.
On Aug. 13, 2012, Ritterhoff entered guilty pleas to Counts 5 and 6 of the indictment charging him with receipt of child pornography, and admitted receiving two emails on June 6, 2011, which contained electronic images of child pornography. As required by the plea agreement, the remaining counts of the indictment were dismissed after Ritterhoff was sentenced.The case was investigated by HSI, the Bronx District Attorney’s NYPD Squad, and the New Mexico Attorney General’s Office (NMAGO) with assistance from the Las Cruces Police Department, and was prosecuted by Assistant U.S. Attorney Marisa Lizarraga of the U.S. Attorney’s Las Cruces Branch Office.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as part of the New Mexico Internet Crimes Against Children Task Force whose mission it is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
12 July 2013
Wendell Man Convicted on Narcotics Distribution and Weapons ChargesRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that yesterday, FELIX A. OKAFOR, 52, of Wendell, North Carolina, was convicted by a federal jury of 25 drug and firearms offenses including conspiracy to distribute 100 grams of heroin and 100 kilograms of marijuana, four counts of distribution of marijuana, six counts of distribution of heroin, distribution of drugs within 1000 feet of a school, and 11 counts of possession of a firearm during a drug trafficking crime.
During the four day trial, the government presented evidence that between on or about November 8, 2011, through on or about January 11, 2012, OKAFOR sold various quantities of marijuana and heroin multiple times to a confidential informant at the defendant’s convenience store, the Flying Eagle, in Benson, North Carolina. OKAFOR possessed a gun in his pocket during each of these transactions. Additionally, the defendant used the Flying Eagle to cut and package the drugs to sell. The store was within 1000 feet of Benson Middle School. OKAFOR faces a minimum of 265 years and a maximum of 560 years imprisonment at sentencing.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives the North Carolina State Bureau of Investigation and the Johnston County Sheriff’s Office. Assistant United States Attorney Ethan A. Ontjes prosecuted the case.
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Terry Williams, 47, of Elkhart, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of knowingly possessing a firearm in and affecting interstate or foreign commerce. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 10/15/2013 before District Judge Robert L. Miller Jr. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Carl Powers, 54, of Hoffman Estates, Illinois, pled guilty before Chief Judge Philip Simon to the felony offenses of conspiracy to commit wire fraud and wire fraud.Sentencing has been set for 10/16/13.These charges were filed as a result of an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Jill Koster.
Anthony Stewart, 23, of East Chicago, Indiana, pled guilty before Senior District Judge James Moody to the felony offense of possession of a firearm by a convicted felon.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force and the East Chicago Police Department.This case is being prosecuted by Assistant United States Attorney David Nozick.
Jose Lechuga-Carrasco, 38, of Cicero, Illinois, pled guilty before Chief Judge Philip Simon to the felony offense of possession with the intent to distribute 500 grams or more of cocaine.Sentencing has been set for 10/18/13.This charge was filed as a result of an investigation by the Drug Enforcement Administration and the Hammond Police Department.This case is being prosecuted by Assistant United States Attorney Joshua Kolar.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Laurie Brezinski, 43, of Schererville, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 36 months imprisonment, $659,048.63 in restitution to Ticor Title Insurance Company and 2 years of supervised release after pleading guilty to the felony offenses of embezzlement from 2001 through 2008 and filing false tax returns for tax years 2003 to 2008.This case was the result of an investigation by the Internal Revenue Service.This case was prosecuted by Assistant United States Attorney Jacqueline Jacobs.
Charles Standifer, 37, of Gary, Indiana, was sentenced by Chief Judge Philip Simon to 18 months imprisonment and 1 year of supervised release after pleading guilty to the felony offense of aiding and assisting in the preparation of a false tax return.This case was the result of an investigation by the Internal Revenue Service.This case was prosecuted by Assistant United States Attorney Jill Koster.
Tracey R. Tigner, 42, of Gary, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 3 months imprisonment, restitution of $30,462.35 and 3 years of supervised release after pleading guilty to the felony offense of embezzlement of funds from Painters District Council 91 of the International Union of Painters and Allied Trades, a labor organization.This case was the result of an investigation by the United States Department of Labor.This case was prosecuted by Assistant United States Attorney Randall Stewart.
Julian Rebeles, 22, of Hammond, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 30 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed by the government in this case, Rebeles has prior convictions for burglary and resisting law enforcement.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force and the Hammond Police Department.This case was prosecuted by Assistant United States Attorney David Nozick.
Octavio Alejandre-Mata, 45, of Hobart, Indiana, was sentenced by Senior District Judge Rudy Lozano to 12 months and 1 day imprisonment and 3 years of supervised release, if not deported, after pleading guilty to the felony offense of distribution of cocaine.According to documents filed by the government in this case, Mata had been deported and reentered the U.S. twice and was selling cocaine in and around the Hobart area.This case was the result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case was prosecuted by Assistant United States Attorney Jacqueline Jacobs.
Jesus Ramirez, 42, of Chicago, Illinois, was sentenced by Senior District Judge James Moody to 188 months imprisonment, restitution of $20,000 and 2 years of supervised release after pleading guilty to the felony offense of kidnapping.According to documents filed by the government, this case began with the kidnaping of an identified victim in East Chicago, Indiana, on January 14, 2011. The victim was attacked, pinned to the ground, and told that if he did not go with Ramirez and others, his attackers would take not only him, but also members of his family. Multiple ransom calls were made to the victim’s family, including those threatening to kill the victim. Finally, on January 18, 2011, the victim’s family paid the ransom demand. Ramirez was arrested following the ransom payment.Ramirez’ prior criminal activity ranges from traffic violations to burglary, battery and narcotics charges. This case was the result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case was prosecuted by Assistant United States Attorney Joshua Kolar.
Mark Ciesiolka, 39, of Columbus, Indiana, was sentenced by Senior District Judge James Moody to 120 months imprisonment and 3 years of supervised release after pleading guilty to the felony offense of attempted transmission of obscene material to a minor.According to documents filed by the government in this case, in February of 2008, after a trial by jury, Ciesiolka was convicted of coercion and enticement of a minor and sentenced to 300 months incarceration. His conviction was set aside by the Court of Appeals. On November 26, 2012, the defendant pled guilty to a lesser charge of transferring obscene material to a minor. This case was the result of an investigation by the United States Secret Service.This case was prosecuted by Assistant United States Attorney Philip Benson.
Jazneen Williams, 23, of Gary, Indiana, was sentenced by Chief Judge Philip Simon to 12 months of probation after pleading guilty to the felony offense of making false statements in the purchase of a firearm.According to documents filed by the government in this case, Williams straw-purchased a firearm for another individual who was a convicted felon.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Chicago Police Department.This case was prosecuted by Assistant United States Attorney Dean Lanter.
Alejandro Marquez, 31, of Chicago, Illinois, was sentenced by Senior District Judge James Moody to 46 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of conspiracy to possess with the intent to distribute marijuana.According to documents filed by the government in this case, Marquez assisted in arranging for the transportation of over 100 kilograms of marijuana from Texas to Indiana.This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Joshua Kolar.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS:
Dashawn Jones, 23, of Fort Wayne, Indiana, was sentenced by District Judge Theresa L. Springmann to serve 18 months imprisonment, concurrent with any remaining un-discharged term of imprisonment as ordered by Allen County Superior Court, and 2 years of supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. Jones has a prior conviction for burglary.In December of 2012, during a residence check, Jones was discovered to have a firearm on his person. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Antonio Sewell, 31, of Fort Wayne, Indiana, was sentenced by District Judge Theresa L. Springmann to serve 76 months imprisonment and 4 years supervised release after pleading guilty to the felony offense of conspiring to distribute and possess with the intent to distribute controlled substances.According to documents filed, Sewell maintained a place for the purpose of distributing cocaine. This case was the result of an investigation by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Vice President of Frederick Mail Preparation Service Sentenced for Fraud Resulting in Losses of over $628,500Read the Press Release
Majority of Victims Were Non-Profit Clients Who Relied on the
Mailings to Raise Funds
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Stephen Reid, age 51, of Frederick, Maryland, today to two years in prison followed by three years of supervised release for conspiring to commit mail and wire fraud arising from the failure to provide contracted-for services to clients of Reid’s company. Judge Blake also ordered that Reid forfeit and pay restitution of $628,581.48, the amount of loss resulting from the fraud.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
“In addition to defrauding postal customers, this scheme jeopardized the reputation of the U.S. Postal Service with its customers,” said Gary Barksdale, Inspector in Charge, Washington Division, U.S. Postal Inspection Service. “Through investigations such as this, postal inspectors will continue to protect postal customers and ensure thePostalService retains its reputation as the most trusted government agency.”
According to his plea agreement, Reid was vice president and owner of 35% of the shares of RMS Direct, Inc., a mail preparation service located in Frederick, with over 200 clients and annual revenue of over $5 million. Under the supervision of Reid and co-conspirator Chester Bigelow, the president and owner of 65% of the shares of RMS, RMS contracted to prepare and submit to the U.S. Postal Service (USPS) large-volume mailings, typically made up of pamphlets, brochures, books, and other printed materials.
RMS clients were primarily non-profit corporations that relied upon the mailings sent through RMS to raise funds, and the timing of the mailings was essential to their fundraising efforts. RMS assembled the mailings, applied the postage and addresses and organized the pieces of mail for submission to the USPS. RMS submitted the mailings to a full-time USPS acceptance clerk that was assigned to its office. As proof that the mailings went out, RMS then emailed its clients either of two USPS documents – a postage statement signed and certified by the USPS acceptance clerk or a mailing transaction receipt printed from an online USPS database. Both documents included information as to the dates, times, number of pieces of mail and postage paid. Once the RMS client received a statement, it would remit payment to RMS.
Reid admitted that the conspiracy began in 2005, when he and Bigelow falsified postage statements to misrepresent to RMS clients that mailings were being sent out in a timely fashion when, in fact, the mailings were late. Beginning in 2009, Reid and Bigelow selected certain mailings or portions of mailings that would not be submitted at all to USPS for delivery. They made sure that the documentation sent to the RMS client was falsified to indicate that the full mailing had been submitted, thereby causing the client to overpay RMS for postage and services.
To accomplish the fraud, Reid, Bigelow and RMS employees operating at their direction generated false postage statements, forged the signature of the USPS acceptance clerk and created a false impression of the special USPS date stamp used on the postage statement. In 2006, RMS employees made an unauthorized copy of the USPS acceptance clerk’s key to the filing cabinet where the official date stamp was kept. From that time until 2010, Reid, Bigelow and RMS employees operating at their direction used the copied key to gain access to the date stamp when the USPS acceptance clerk was not present in order to falsify postage statements. Beginning in 2010, when the computer-generated mailing transaction receipt was adopted by the USPS to certify mailings, Reid and Bigelow falsified those as well, using a document that had been created, which, when printed, looked identical to the USPS mailing transaction receipt. Reid and Bigelow directed RMS employees to use this document to create false mailing transaction receipts, which were then sent to RMS clients as proof of the timely and complete submission of their mailings.
Reid and Bigelow took other measures to conceal the fraud. For example, RMS clients often included pieces of mail known as “seeds” in the mailings they provided to RMS. These “seeds” were sent to particular individuals or addresses so that the client could track the timing and appearance of the mailing. Bigelow directed RMS employees to make sure to deliver the “seeds” from the mailings that were going out late or were not otherwise submitted to the USPS.
As a result of the scheme, at least 19 victims lost a total of $628,581.48.
Chester William Bigelow, age 58, of Woodbine, Maryland, pleaded guilty to the conspiracy and is scheduled to be sentenced on July 30, 2013 at 9:00 a.m.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service for its work in the investigation and thanked Special Assistant U.S. Attorney Matthew Lunder, a trial attorney with the Justice Department’s Antitrust Division, National Criminal Enforcement Section, who prosecuted the case.
U.S. Resident of Mexico Pleads Guilty to Money Laundering SchemeRead the Press Release
A US citizen who resides in Cabo San Lucas, Mexico pleaded guilty to brokering international Money Laundering transactions, announced U.S. Attorney Barbara McQuade.
McQuade was joined in the announcement with Special Agent in Charge Robert L. Corso, Drug Enforcement Administration Detroit Field Office.
Pleading guilty before United States District Judge Bernard A. Friedman on July 9, 2013 was Michael Venuta.
According to court records, between April, 2011 and December 2012 Venuta was an associate of individuals involved in drug trafficking in Canada, the United States and Mexico. Venuta brokered multiple transactions in which drug trafficking proceeds were transmitted or transported across international borders involving the United States, Mexico and Canada. Specifically, the transactions were intended to conceal the nature, source and location of the proceeds.
Sentencing is scheduled for October 8, 2013. Venuta faces a maximum sentence of 46 month in prison under the terms of the plea agreement which was taken under advisement by the court, and a fine of up to $250,000. In addition, $356,314.00 in drug proceeds was seized and is being forfeited.
Ms. McQuade complimented the Special Agents of the DEA responsible for the investigation of the case.Two Swap Meet Robbery Defendants Receive Lengthy Prison SentencesRead the Press Release
PITTSBURGH, Pa. - Two Pittsburgh residents have been sentenced in federal court to lengthy prison terms on their convictions of violating federal drug and firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the following sentences:
- Derrick Holliday, 27, received a sentence of 130 months (10 years, 10 months); and
- Zane Lundy, 27, received a sentence of 154 months (12 years, 10 months).
According to information presented to the court, between Sept. 14, 2010, and Sept. 15, 2010, Holliday, Lundy and others conspired to distribute and possess with intent to distribute less than 50 kilograms of marijuana and to rob the Swap Meet, a business engaged in interstate commerce, as well as its owner, vendors, employees and customers of money, merchandise and marijuana. On Sept. 15, 2010, Holliday, Lundy, and their co-defendants robbed the Swap Meet, as well as its owner, vendors, employees and customers and as a result thereof obtained among other things, $300-$400 and one kilogram of marijuana. During the robbery, Holliday and Lundy carried, used and possessed firearms.
Assistant United States Attorney Troy Rivetti prosecuted this case on behalf of the government.
This case was prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Holliday and Lundy.
Two Southern Illinois Residents Sentenced on Methamphetamine ConspiracyRead the Press Release
On July 11, 2013, Jeremy R. Rettig, a/k/a “Jeremo,” 32, of Cutler, IL, and Kathy L. Griffin, 36, of Murphysboro, IL, were sentenced in United States District Court in Benton on an indictment charging conspiracy to manufacture methamphetamine, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Rettig and Griffin had previously pled guilty to the methamphetamine offense, which occurred between January 2011, and January 2013, in Perry, Jackson, and Randolph Counties. Rettig was sentenced to 87 months in prison and 3 years supervised release. Griffin was sentenced to 108 months in prison and 4 years supervised release. Each was fined $300. Evidence at the plea and sentencing hearings established that Rettig and Griffin were involved with others in the manufacture of methamphetamine. During the conspiracy, Griffin obtained over 100 grams of pseudoephedrine, which she supplied to Rettig and others for the purpose of manufacturing methamphetamine. In addition to obtaining pseudoephedrine, Rettig also participated in methamphetamine cooks with numerous individuals. Nine other co-defendants have pled guilty to their role in the methamphetamine conspiracy and are awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Randolph County Sheriff’s Office, Perry County Sheriff’s Office, Percy Police Department, Murphysboro Police Department, Sparta Police Department and Drug Enforcement Administration. The United States Marshals Service has also assisted during the investigation.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Two Conspirators Plead Guilty in Mortgage Fraud Scheme Involving Properties in the Baltimore Reservoir Hill NeighborhoodRead the Press Release
Loss of Approximately $1 Million
Baltimore, Maryland - Kimberly Eileen McMillian, a/k/a Kimberly Simmons and Kimberly Simmons McMillian, age 46, of Baltimore, and Glenroy E. Day, Sr., age 73, of Oxon Hill, Maryland, pleaded guilty yesterday to wire fraud in connection with a fraud scheme involving more than $1 million in fraudulently obtained mortgages.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Acting Special Agent in Charge Lisa Quinn of the United States Secret Service – Baltimore Field Office.
According to her plea, in 2007, McMillian approached a man who had bought three houses in Baltimore and had finished renovations on two of them, and told him that she had clients from the New York area who were interested in purchasing the properties. When he agreed to sell, McMillian submitted loan application packages to a loan officer at a mortgage corporation in connection with the three properties, as well as a fourth property. The four loan application packages were subsequently approved.
The government’s investigation revealed that virtually all of the information submitted in the four loan packages was false. In two cases, the purported buyers were individuals who had already returned to their home countries or planned to do so in the near future; the other two “buyers” listed on the loan applications were either stolen or fictitious identities. In none of the four cases was there a real individual who actually intended to live in the properties and make the mortgage payments on them. Moreover, the representations made and the supporting documentation provided on each loan application relating to the employment, income, and financial assets for each purchaser were likewise false. While acknowledging that she is guilty of the charged offense, and in particular that she was aware that the prices of all four properties were inflated, McMillian maintains that she was not aware that the information relating to each borrower’s income, employment, assets and intention to live in each property was fraudulent.
McMillian also did not disclose that she was going to buy the fourth property for $75,000 and then flip it to the fourth “buyer” the same day for $250,000, without any renovations having been done on the property, because she knew the lender would not have agreed to finance such a transaction. This property and the third property, which had also not been renovated, were in poor condition, and were being sold for prices that far exceeded their actual market value.
McMillian arranged to have Day, an unlicensed appraiser, prepare the appraisal reports on all four properties because she knew he would provide an appraisal at the specific contract price without regard to the actual condition or value of the property. For the two properties located at 2243 Madison Avenue and 2359 McCulloh Avenue, Day admitted that he falsely represented that both properties had been recently upgraded and renovated. Day further admitted that these two appraisals also included interior photographs that were actually taken in completely different and thoroughly renovated houses. Day’s appraisals indicated that each of the four appraisals had been reviewed and approved by a licensed appraiser, but the individual specified has denied that he saw or reviewed any of the four appraisals.
Based on the false information provided relating to the four “buyers” and the condition and market value of the properties, the mortgage company agreed to extend financing on each of the four properties, totaling $1.094 million in all.
At each of the four settlements, McMillian directed the settlement agent to transfer a substantial portion of the loan proceeds to her and/or to businesses named KayCee Associates or Dee-Ladok Investments that belonged to an associate, either pursuant to an assignment contract or to pay for renovations that had ostensibly been carried out on the properties by Kaycee Associates. In fact, all of the renovations performed on the first two properties were carried out and paid for by the man who sold them.
McMillian received a total of approximately $278,000 from the four transactions at the closings, although she in turn transferred $122,000 of the settlement proceeds to another individual and an associate’s business checking account. Day received approximately $2,000 which he had charged for preparing the four appraisals.
Following the closings, the mortgage on each property soon went into default. Typically, either no mortgage payments were made at all, or only a couple of payments were made.
McMillian and Day face a maximum sentence of 30 years in prison and a $250,000 fine, and will be required to pay restitution for the full amount of the victims’ losses. U.S. District Judge George L. Russell III scheduled McMillian and Day’s sentencing for October 11, 2013 at 9:30 a.m. and 11:00 a.m., respectively.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage-Fraud/index.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the FBI and U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Jefferson M. Gray, who is prosecuting the case.
Topeka Man Pleads Guilty to Drugs, Firearms ChargesRead the Press Release
TOPEKA, KAN. – A Topeka man has pleaded guilty to federal firearms and drug trafficking charges, U.S. Attorney Barry Grissom said today.
Willie C. McNair, 26, Topeka, Kan., pleaded guilty to one count of possession with intent to distribute 3.1 kilograms (more than six pounds) of marijuana and one count of unlawful possession of a firearm after a felony conviction.
In his plea, McNair admitted that on Dec. 9, 2011, the Topeka Police Department executed a search warrant on his storage unit at Flex Self Storage, 447 SE 29th Street in Topeka. They found 3.1 kilograms of marijuana and two rifles and a handgun. At the time, McNair was prohibited by federal law from possessing a firearm because he had been convicted Nov. 21, 2011, in Shawnee County District Court on a charge of kidnaping.
Sentencing is set for Oct. 9. He faces a maximum penalty of five years in federal prison and a fine up to $250,000 on each count.
Grissom commended the Topeka Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Top Executive of Miami Beach Manufacturing Company Convicted in Multi-Million Dollar Investment SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Craig Stanley Toll, 64, of Pembroke Pines, was convicted today by a federal jury. Specifically, Toll was convicted of two counts of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; three counts of substantive wire fraud, in violation of Title 18, United States Code, Section 1343; one count of major fraud against the United States, in violation of Title 18, United States Code, Section 1031; one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1957; and three counts of making false statements to a United States government agency, in violation of Title 18, United States Code, Section 1001. Toll was acquitted of 12 counts of wire fraud.
According to allegations in the indictment and the evidence presented at trial, Innovida Holdings, LLC, was a Florida limited liability company located in Miami Beach. Innovida manufactured fiber composite panels for the construction industry for use in the construction of residential, commercial, governmental, and other structures without the need for cement, steel or wood. Innovida purported to be a rapidly expanding and financially strong international operation with facilities in the United States, the United Arab Emirates, Germany, Angola, Tanzania, and other countries. Co-defendant Claudio Osorio was the president, owner and majority shareholder of Innovida. Defendant Craig Toll, a licensed CPA, was the company’s Chief Financial Officer.
According to the indictment and as shown at trial, between March 2007 and March 2011, Osorio, Toll and others offered and sold shareholder interests and joint-venture partnerships in Innovida to select individuals and groups, raising more than $40,000,000 from approximately ten (10) investors and investment groups located in the United States and other countries. Osorio, Toll and others solicited and recruited investors by making materially false representations and concealing and omitting material facts regarding, among other things, the profitability of the company, the rates of return on investment funds, the use of investors’ funds and the existence of a pending lucrative contract with a third-party entity. Osorio received moneys from investors based on these misrepresentations. In addition, Osorio used investor monies for his and his co-conspirators’ personal benefit and to maintain and further the fraud scheme.
The indictment further alleges that between January 2010 and March 2011, Osorio, Toll and others applied for and obtained a $10,000,000 loan from the Overseas Private Investment Corporation (“OPIC”), a U.S. government agency that promotes U.S. government investments abroad to foster the development and growth of free markets. The purported purpose of the loan was to build a manufacturing facility and 500 homes in Haiti for displaced families in the aftermath of the January 2010 earthquake. The indictment alleges and the jury found that Osorio, Toll and others made materially false representations and omissions concerning, among other things, the profitability of Innovida, the purported use of the loan proceeds, an equity contribution to be made by Innovida, and contracts that Innovida purportedly had obtained with third-party vendors. Osorio used the OPIC loan proceeds to repay investors and for his and his co-conspirators’ personal benefit and to further the fraud scheme.
Codefendant Claudio Osorio pled guilty earlier to two counts of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also commended the efforts of the SEC-Miami Regional Office, for their cooperation and assistance during this investigation. The case was prosecuted by Assistant U.S. Attorneys Lois Foster-Steers and Kimberly Selmore.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Southern Illinois Residents Charged with Methamphetamine ConspiracyRead the Press Release
Three southern Illinois residents were indicted on July 9, 2013, in an indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Michael J. Lasky, 55, and Daniel M. Caraker, 51, both of DuQuoin, and Lori A. Helmer, 49, Elkville, are charged in a one-count indictment charging conspiracy to manufacture methamphetamine. The indictment alleges that the offense occurred between 2012 and June 2013, in Perry, Jackson and Randolph Counties. The three co-defendants are scheduled to make their initial appearances in United States District Court in Benton on July 19, 2013.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Lasky, Caraker, and Helmer face a term of imprisonment of up to 20 years, a $1,000,000 fine, and 3 years of supervised release.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Murphysboro Police Department, DuQuoin Police Department, Pinckneyville Police Department, Illinois State Police Methamphetamine Response Team, and Drug Enforcement Administration. The Perry County States Attorney’s Office also assisted in the investigation.
The case is being prosecuted by Assistant United States Attorney Amanda A. Robertson.
Stockton Man Indicted for Conspiring to Distribute 500 Grams of MethamphetamineRead the Press Release
MINNEAPOLIS—A federal indictment unsealed recently charges a 27-year-old man with conspiring to distribute more than 500 grams of methamphetamine. The indictment, which was filed on July 9, 2013, charges Gabriel Orion Lowther, of Stockton, Minnesota, with one count of conspiracy. On July 10, 2013, the indictment was unsealed following Lowther’s initial appearance in federal court.
The indictment alleges that from August 2012 to June 2013, Lowther conspired with others to distribute 500 or more grams of methamphetamine.
If convicted, Lowther faces a potential maximum penalty of life in prison. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the United States Drug Enforcement Administration, the Minnesota Bureau of Criminal Apprehension, the Minnesota South Central Drug Investigation Unit and the Southeastern Minnesota Gang and Narcotics Task Force. It is being prosecuted by Assistant U.S. Attorney Allen A. Slaughter.To learn more about the harmful effects of methamphetamine, visit http://www.justice.gov/dea/pr/multimedia-library/publications/drug_of_abuse.pdf#page=48.
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.
Statement of Attorney General Eric Holder on the Justice Department Report on Revised Media GuidelinesRead the Press Release
After conducting a rigorous review of internal Justice Department guidelines governing investigations and other law enforcement matters that involve journalists, Attorney General Eric Holder today released a report outlining several key reforms to the department’s protocols, as well as the following statement: “The Department of Justice is firmly committed to ensuring our nation’s security, and protecting the American people, while at the same time safeguarding the freedom of the press. These revised guidelines will help ensure the proper balance is struck when pursuing investigations into unauthorized disclosures. While these reforms will make a meaningful difference, there are additional protections that only Congress can provide. For that reason, we continue to support the passage of media shield legislation. I look forward to working with leaders from both parties to achieve this goal, and am grateful to all of the journalists, free speech advocates, experts, and Administration leaders who have come together in recent weeks – in good faith, and with mutual respect – to guide and inform the changes we announce today.”
During the review, Attorney General Holder personally held seven meetings with approximately 30 news media organizations as well as with First Amendment groups, media industry associations and academic experts.
A copy of the full Justice Department report is attached.
Related Materials:
Report on Review of News Media Policies
St. Michael Man Sentenced for Burglarizing the Tokio Post Office and Conspiring to Commit Bank FraudRead the Press Release
FARGO – U.S. Attorney Timothy Q. Purdon announced that on July 12, 2013, Robert Redroad, Jr. of St. Michael, N.D., was sentenced before U.S. District Judge Ralph R. Erickson on charges of burglary of a post office and conspiracy to commit bank fraud. Redroad, Jr. pleaded guilty to the charges on April 16, 2013.
Judge Erickson sentenced Redroad, Jr. to 30 months’ imprisonment to be followed by three years of supervised release. He was also ordered to pay a $200 special assessment to the Crime Victim’s Fund.
On April 16, 2013, Redroad Jr. pleaded guilty to breaking into the Tokio Post Office on the Spirit Lake Indian Reservation and stealing a U.S. Treasury check made payable to another person. Redroad, Jr. forged the signature on the check and had another individual cash the check at Wells Fargo Bank in Moorhead, Minn. The incidents occurred in September of 2012 in the Districts of North Dakota and Minnesota.
The case was investigated by the U.S. Postal Inspection Service.
Assistant U.S. Attorney Janice M. Morley prosecuted the case.