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Thursday 30 May 2013
British National Pleads Guilty to a Customs ViolationRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Gary Hyde, 44, of York, England, pleaded guilty to a charge of removing and altering country of origin markings on imported articles and was sentenced to time served by U.S. District Judge Charles J. Siragusa. Hyde, who is currently serving a sentence of seven years in prison in England for his involvement in a separate illegal arms transaction, appeared through his attorney.
Assistant U.S. Attorney Bret A. Puscheck, who handled the case, stated that the defendant jointly owned, along with German national Karl Kleber, Jago Ltd., a company based in Great Britain that buys and sells arms. In 2007, the defendants obtained approximately 6,000 75 round capacity AK-47, rifle drum magazines from a Chinese arms manufacturer that were to be produced with no Chinese markings on the magazines or their containers. In March 2008, while Karl Kleber had sole physical custody of these Chinese-manufactured gun magazines in Germany, Kleber agreed to sell the drum magazines to American Tactical Imports, Inc. (“ATI”), of Rochester, an arms and munitions wholesale distributor.
In August 2008, 5,760 of these Chinese-manufactured, 75 round capacity, AK-47 rifle drum magazines bearing no Chinese country of origin marks were shipped from Germany by Kleber to ATI. Prior to shipping the defendants agreed to the arrangements for sending the drum magazines to ATI for resale while both were aware that Chinese-manufactured drum magazines could not be imported into the United States. In September 2008, the drum magazines were imported into the United States and delivered to ATI in Rochester.
In February 2011, Karl Kleber was convicted of smuggling goods into the United States and is awaiting sentencing.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge, James C. Spero, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Scott Heagney.
A third defendant, Paul Restorick, was also arrested in this case and the charges against him are pending.Bridgeport Man Charged with Delivering Hand Grenade Concealed in Coffee Cup to Bridgeport PoliceRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the FBI, and Bridgeport Police Chief Joseph L. Gaudett, Jr., announced that MORRIS A. ROBERTS, 42, of Bridgeport, was arrested today on a federal criminal complaint charging him with delivering a modified hand grenade concealed in a coffee cup to the Bridgeport Police Department in February.
ROBERTS was arrested this morning at his residence. He appeared before United Magistrate Judge William I. Garfinkel and has been ordered detained.
As alleged in the criminal complaint, in the morning of February 27, 2013, outside of the Bridgeport City Hall annex located at 999 Broad Street, ROBERTS handed a paper coffee cup to a witness and asked the witness to deliver the coffee cup to Bridgeport Police Department’s Office of Internal Affairs (OIA). The witness subsequently delivered the cup. When a police officer assigned to OIA looked in the cup, the officer discovered a modified hand grenade and notified the Emergency Operations Center. Law enforcement officers, including the Connecticut State Police Emergency Service Unit, responded to the scene, the building was evacuated and the grenade was safely removed.
Subsequent examination of the grenade determined that it would not have detonated due to its poor construction. However, explosive black powder, which is not normally present in the type of device found, had been added to the grenade.
The investigation has included analysis of several videos recorded on the morning of February 27 in the area of 999 Broad Street.
The criminal complaint charges ROBERTS with possession of an explosive by a previously convicted felon, and with making a threat or conveying false information concerning an attempt to kill, injure or intimidate a person or unlawfully damage any building by means of an explosive. Each charge carries a maximum term of imprisonment of 10 years.
Acting U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, the Bridgeport Police Department and the Connecticut State Police. The FBI’s JTTF includes participants from the Department of Homeland Security, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation, Naval Criminal Investigative Service, Connecticut State Police, Bridgeport Police Department, Norwich Police Department and the New York Police Department.
This case is being prosecuted by Assistant United States Attorney Anastasia E. King.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Baltimore Man Exiled to 9 Years in Prison for A Series of Armed Commercial RobberiesRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Monzell Lee, age 20, of Baltimore, Maryland, today to nine years in prison followed by five years of supervised release for interference with commerce by robbery and possession of a gun in furtherance of a crime of violence. Judge Hollander also ordered Lee to pay restitution to the victims totaling $1,937.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to Lee’s plea agreement, between May 28 and June 11, 2012, Lee participated in four robberies of convenience stores and fast food restaurants in the Baltimore area. In each robbery Lee entered the store with a co-conspirator, who was armed. The co-conspirator brandished the gun at the store employees and Lee and the co-conspirator took cash from the register. A third conspirator, Rico Bias, then drove Lee and the other conspirator away from the scene of each robbery.
Specifically, Lee robbed: the Burger King in the 8300 block of Harford Road in Baltimore on May 28, 2012; the Royal Farms Store in the 1900 block of Belair Road and the Royal Farms Store in the 900 block of West 36th Street, both in Baltimore, on May 29, 2012; and the Wendy’s Restaurant in the 3600 block of Washington Boulevard in Elkridge on June 11, 2012.
Bias, age 34, also of Baltimore, previously pleaded guilty to conspiring to commit a commercial robbery and the gun charge and is scheduled to be sentenced on June 21, 2013 at 11:30 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney A. David Copperthite, who prosecuted the case.
Athaliah Venus Allison Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on May 30, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, ATHALIAH VENUS ALLISON, a 36-year-old resident of Belgrade, pled guilty to (2) counts of wire fraud and (1) count of aggravated identity theft. Sentencing has been set for September 13, 2013. She is currently released on special conditions.
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:
ALLISON was the bookkeeper for Big Sky Asphalt in Bozeman from the summer of 2008 through the summer of 2012. Her work was predominantly seasonal and there were periods of time when she was employed essentially 40 hours per week and other periods where she was employed fewer than 40 hours per week, if at all.
In approximately July 2008, ALLISON began embezzling from the company by writing and signing unauthorized company checks to herself and to other entities and making unauthorized credit card purchases using the US Bank company credit card. The loss to Big Sky Asphalt is approximately $318,166.04 ($68,503.81 in check fraud and $249,662.23 in credit card fraud).
The owners of Big Sky Asphalt found out about the embezzlement when ALLISON confessed around Labor Day 2012 that she had used the company credit card to pay for her husband's substance abuse treatment in Billings. ALLISON was very upset and agreed to pay back the $6,700 charge. Later that same week, ALLISON called the wife of one of the owners of Big Sky Asphalt and told her that the credit card was due and the balance was $3,426. The owner's wife called US Bank directly to pay over the phone and was informed that the balance was $10,777, so she went to ALLISON's house to get the statement and noticed that it said $3,426. Based on the discrepancy, the owner's wife ordered transaction histories for the US Bank account dating back to December 2008.
The owner's wife audited the credit card statements and discovered $249,662.23 in unauthorized purchases, including $39,544.11 to Blanchford Landscaping. Additional investigation revealed that ALLISON approached the owner of Blanchford Landscaping, for whom she also worked as bookkeeper, in approximately July 2011 and offered to pay the company's bills with a low-interest, high-limit credit account, which turned out to be Big Sky Asphalt's US Bank credit card.
ALLISON also wrote checks to herself on Big Sky Asphalt's bank account totaling $193,303.81. Even a generous estimate of her actual wages reveals an overpayment of $68,503.81, yielding an approximate total loss amount of $318,166.04 for both the credit card and check fraud. The checks that ALLISON wrote to herself were often for "reimbursable expenses." The checks also required the signatures of both of the owners of Big Sky Asphalt (J.S. and D.S.), which ALLISON forged. The forgery on October 22, 2008, in connection with ALLISON's negotiation of check number 27462, forms the basis of the identity theft charge in Count III of the Information.
ALLISON changed the address for the US Bank statements without permission, rerouting them to her personal residence. She also had the various accounts combined into one monthly summary. Once she controlled the statements she altered them by digitally removing the unauthorized charges and adding those amounts onto authorized expenditures for purchases made by Big Sky Asphalt's owners. She then removed her personal address from the bill, replaced it with the company address, and made the statements available to the owners for their review.
ALLISON used Big Sky Asphalt's credit card to pay Blanchford Landscaping's bills and then reimbursed herself from Blanchford's checking account. It appears that she charged $39,544.11 in Blanchford bills to the Big Sky Asphalt card.
ALLISON also opened a Staples Citibank account in 2008 in Big Sky Asphalt's name and charged $1,311.90 in expenses to places such as Macy's, Nordstrom, Aeropostale, American Eagle, Babies 'R Us, and Kohl's.
From May 2009 through April 2012, during the same time period that she was embezzling from Big Sky Asphalt, ALLISON was also receiving unemployment benefits from the State of Montana. In June 2009, ALLISON reported to the State that she worked four hours and made $66. That same month, Big Sky Asphalt paid ALLISON $1,072 in wages for 80 hours of work. In August 2009, she reported 12 hours and $180 to the State, but made $2,278 working 181 hours (including overtime) for Big Sky Asphalt.
ALLISON faces possible penalties of 20 years in prison, a $250,000 fine and 3 years supervised release for each count of wire fraud and 3 years in prison, a $250,000 fine and 3 years supervised release for aggravated identity theft.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bozeman Police Department.
Arkansas Woman Indicted for Defrauding Monterey Bay Aquarium Research InstituteRead the Press Release
SAN JOSE – Yesterday, a federal grand jury in San Jose, California, indicted Lisa McMahon, of Mountain View, Arkansas with wire fraud and theft from the Monterey Bay Aquarium Research Institute (MBARI), United States Attorney Melinda Haag announced.
MBARI is a non-profit center for advanced research and education in ocean science and technology located in Moss Landing, California, and supported in part by federal funding. According to the indictment, McMahon was employed at MBARI as a payroll specialist with responsibilities concerning the payment of wages, 401(k) contributions and loans for MBARI employees. The indictment alleges that, from at least 2005 until January of 2012, McMahon devised and executed a scheme to defraud MBARI by altering payroll and 401(k) records to cause and conceal fraudulent payments to her personal accounts. According to the indictment, McMahon caused the transfer of approximately $800,000 of MBARI funds to her personal accounts without the authorization or knowledge of her employer.
McMahon’s initial appearance is scheduled for Thursday, June 6, 2013, at 10:30 am, in front of The Honorable Paul S. Grewal, U.S. Magistrate Judge, in San Jose, California.
The maximum statutory penalty for each count of wire fraud in violation of Title 18, United States Code, section 1343, is twenty years imprisonment and a fine up to twice the pecuniary gain or loss associated with the offense, plus restitution. The maximum statutory penalty for each count of theft from a federal program in violation of Title 18, United States Code, section 666, is ten years imprisonment and a fine up to twice the pecuniary gain or loss associated with the offense, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Philip A. Guentert is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Please note, an indictment contains only allegations against an individual and, as with all defendants, McMahon must be presumed innocent unless and until proven guilty.
Amarillo Women Sentenced to Lengthy Federal Prison Sentences for Running Methamphetamine Distribution ConspiracyRead the Press Release
Law Enforcement Discovered More Than 33 Kilograms of Meth in Vehicle
AMARILLO, Texas — Today, Delmy Nohemy Hernandez, 36, aka Delmy Nohemy Pena De Hernandez, was sentenced by U.S. District Judge Mary Lou Robinson to 133 months in federal prison following her guilty plea in March 2013 to one count of conspiracy to possess with intent to distribute methamphetamine. Yesterday, codefendant Lilia Rivera, aka Lilia Rivera-Martinez, 44, was sentenced by Judge Robinson to 97 months in federal prison. Rivera pleaded guilty to the same offense. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Rivera was introduced to Hernandez in October 2012 by a mutual friend. Hernandez offered Rivera an opportunity to transport controlled substances. That same month, they began making plans to transport controlled substances by vehicle for a male acquaintance. The controlled substances would be concealed in the vehicle and the women would be paid for transporting it.
In December 2012, Rivera and Hernandez, both residents of Amarillo, went to the Potter County tax office and registered a vehicle in Rivera’s name. The vehicle, a SUV, had been purchased by the male acquaintance who gave them cash to pay for the SUV’s registration, even though he maintained possession of it.
On December 18, 2012, the male acquaintance advised Hernandez and Rivera that they would be making a trip in the SUV to transport a controlled substance. Rivera was to be paid for transporting the substance and Rivera told Hernandez that she would give her some of the money.
On December 20, 2012, Rivera and Hernandez were stopped by law enforcement on U.S. 287 in Carson County, as they were headed to Houston, knowing that they were transporting a controlled substance. During that traffic stop, law enforcement asked the vehicle’s driver, Rivera, for consent to search the vehicle. Subsequently law enforcement discovered 33.6 kilograms of methamphetamine secreted in the vehicle. Rivera and Hernandez were arrested and have been in custody since that time.
The case was investigated by the Drug Enforcement Administration, the Texas Department of Public Safety, the Armstrong and Carson County Sheriff’s Offices and the Amarillo Police Department. Assistant U.S. Attorney Vicki Lamberson was in charge of the prosecution.
Alabama Woman Pleads Guilty in Stolen Identity Refund Fraud SchemeRead the Press Release
Lea’Tice Phillips, of Montgomery County, Ala., pleaded guilty today to one count of wire fraud and one count of aggravated identity theft for her role in a stolen identity refund fraud scheme, the Justice Department and the Internal Revenue Service (IRS) announced today.
According to the court documents, Phillips worked for an Alabama state agency and had access to state databases which contained means of identification of individuals. Between October 2009 and April 2012, Phillips conspired with Antoinette Djonret and others to file false tax returns using stolen identities. On multiple occasions, Phillips accessed a state database to obtain means of identification and used her state email to send means of identification to Djonret. Djonret and others used those means of identification to file false tax returns mostly from Djonret’s residence in Montgomery, Ala. Djonret and her co-conspirators used an elaborate network of individuals to launder the tax refunds. They recruited individuals to purchase prepaid debit cards and to provide the cards to them. Fraudulently obtained tax refunds were directed to the prepaid debit cards that Djonret and her co-conspirators used to obtain the proceeds. Some of the prepaid debit cards were in the name of Phillips. In total, Djonret filed over 1,000 false tax returns that claimed over $1.7 million in fraudulent tax refunds.
The sentencing of Phillips has not yet been scheduled. Phillips faces between two and 22 years in prison, three years of supervised release, restitution, and a maximum fine of $750,000, or twice the loss caused by the offense. Djonret was previously sentenced to 144 months in prison.
The case was investigated by the IRS - Criminal Investigation. Trial Attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney for the Middle District of Alabama Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Alabama Employee Pleads Guilty to Providing Names for A Million Dollar Identity Theft SchemeRead the Press Release
Montgomery, Alabama - On May 30, 2013, Lea’Tice Phillips pleaded guilty to one count of wire fraud and one count of aggravated identity theft for her role in a stolen identity refund fraud scheme, announced United States Attorney George L. Beck, Jr.
According to the court documents, Lea’Tice Phillips worked for an Alabama State agency and had access to state databases which contained means of identification of individuals. Between October 2009 and April 2012, Lea’Tice Phillips conspired with Antoinette Djonret and others to file false tax returns using stolen identities. On multiple occasions, Phillips accessed a state database to obtain means of identification. Phillips used her state email to send means of identification to Djonret. Djonret and others used those means of identification to file false tax returns. Djonret and her co-conspirators filed most of the tax returns from her residence in Montgomery, Alabama. Djonret and her co-conspirators used an elaborate network of individuals to launder the tax refunds. The Defendants recruited individuals to purchase prepaid debit cards and to provide the cards to the Defendant and her co-conspirators. The fraudulent tax refunds were directed to the prepaid debit cards. Djonret and her co-conspirators would then use the prepaid debit cards to obtain the proceeds. Some of the prepaid debit cards were in the name of Lea’Tice Phillips. In total, Djonret filed over 1,000 false tax returns that claimed over $1.7 million in fraudulent tax refunds.
Sentencing has not yet been scheduled. Phillips faces between two and twenty-two years in prison, three years of supervised release, restitution, and a maximum fine of $750,000, or twice the loss caused by the offense. Djonret was previously sentenced to 144 months in prison.
The case was investigated by Special Agents of the IRS - Criminal Investigation. Trial attorneys Jason H. Poole and Michael Boteler of the Justice Department’s Tax Division and Assistant United States Attorney Todd Brown are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Abbeville Drug Distribution Conspirator SentencedRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced that Jose Manuel Mojica-Echeverria, 27, of Mexico, was sentenced Wednesday before U.S. District Judge Richard T. Haik to 24 months in prison plus three years supervised release for conspiracy to possess with intent to distribute controlled substances.
According to evidence presented at the guilty plea, Mojica-Echeverria and Ramon Guadalupe Aldama-Rodriguez, who were residing in Lafayette, conspired with two residents of Abbeville, Jesus Silverio Cervantes and Joel Sotomayor Cervantes, on June 13, 2010, to drive a truck loaded with 2 kilograms of cocaine and 360 grams of heroin to Baton Rouge. Aldama-Rodriguez drove the truck, and Mojica-Echeverria rode with him, while Jesus Silverio Cervantes and Joel Sotomayor Cervantes followed in another vehicle. Authorities stopped the truck during a traffic stop. Mojica-Echeverria pleaded guilty on Dec. 17, 2012.
“The successful prosecution of this case is a result local, state, and federal law enforcement agencies working together with our prosecutors to bring drug traffickers to justice,” Finley stated. “These defendants’ attempt to smuggle kilos of cocaine and heroin into the Acadiana region was foiled because of the hard work and dedication of the agencies involved and their commitment to keeping our community safe.”
Mojica-Echeverria was arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The DEA, the Baton Rouge Police Department and the Vermillion Parish Sheriff’s Office participated in this OCDETF investigation.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Assistant U.S. Attorney Brett L. Grayson prosecuted the case.29 Years in Prison for Springfield Man Serving Second Federal Sentence for Cocaine DistributionRead the Press Release
Springfield, Ill. – Senior U.S. District Judge Richard Mills last week sentenced Patrick B. Wallace, 44, of Springfield, Ill., to 288 months (24 years) in prison for dealing crack cocaine in late 2011, to be followed by a consecutive 60 months (5 years) sentence for revocation of supervised release. At the time of the 2011 offense, Wallace remained under supervised release for a prior federal conviction, in 1994, for conspiracy to distribute cocaine.
A jury convicted Wallace on Oct. 16, 2012, for possession with intent to distribute 28 or more grams of crack cocaine in Springfield, Ill., in December 2011. At trial, the government presented evidence that Wallace was responsible for distribution of substantial quantities of mostly crack cocaine in Springfield. Evidence was also presented that during execution of a search warrant at a home in the 700 block of N. 14th Street, officers found that the home was equipped with a large privacy fence and an alarm system with outside surveillance cameras. Inside the home, a 73” flat screen television screen monitored the surveillance cameras. Officers also recovered one-half kilogram (more than 500 grams) of cocaine and crack, and marijuana, as well as a handgun and $4,300.
In 1994, Wallace was sentenced to 200 months (16 years, 8 months) in federal prison, to be followed by 10 years of supervised release, after pleading guilty in the Central District of Illinois to conspiracy to distribute cocaine. Wallace was released from the Bureau of Prisons in July 2008, and remained under supervised release when he was charged in the second case.
The investigation was conducted by the Springfield Police Department and the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney Timothy A. Bass.12 Individuals Indicted for CarjackingRead the Press Release
SAN JUAN, P.R. – On May 22, 2013, a federal grand jury in the District of Puerto Rico returned multiple indictments against 12 defendants charged with carjacking and firearms offenses, announced today Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. This is the second largest carjacking arrest operation in the District of Puerto Rico. The accusations are the result of a joint effort between the United States Attorney’s Office (USAO), the Puerto Rico Department of Justice, the Federal Bureau of Investigation’s Save Our Streets Initiative (SOS) and the Puerto Rico Police Department (PRPD).
The defendants are: José Canales-Cordova; Wilfredo Jiménez-Torres; Gadiel Lozada-Manzano; Guarionex Pratts Rey; Miguel A. Sànchez-Rivera; Josué E. Aponte-Ramos; Victor J. Romàn Lizardi; Miguel A. Fernàndez-Torres; Luis R. Figueroa-Chévere; and Christopher Pérez-Pontón. These defendants are responsible for many violent crimes within our District, and had committed offenses which until now remained unsolved. Other defendants who allegedly committed the same offenses of carjacking and firearm violations are: Kedwin Rodríguez-Rivera; Roberto Rohena-Villega and Ricardo Urbina-Robles. These individuals were previously indicted in separate accusations.
The SOS agents and the prosecutors in USAO’s Illegal Firearms and Violent Crime Reduction Initiative have filed criminal charges against more than 123 violent offenders for violations to Title 18, United States Code, Section 2119. With these latest charges, the prosecutors in the USAO’s Illegal Firearms and Violent Crime Reduction Initiative have charged approximately 770 violent offenders within the last six months.
“The investigations by the SOS team of FBI special agents and designated PRPD officers will continue into similar crimes in other areas of Puerto Rico,” said US Attorney Rosa Emilia Rodríguez-Vélez. “The collaboration and team work between state and federal law enforcement agencies in the investigation and prompt filing of charges show the immediate results we continue to obtain with this joint initiative.”
“Violent Crimes is one of the priorities for the FBI in San Juan and we'll continue aggressively pursuing it, in partnership with local law enforcement agencies and the United States Attorney’s Office,” said Carlos Cases, Special Agent in Charge of the FBI-San Juan Field Office.
The cases are being prosecuted by Special Assistant U.S. Attorneys: Max Pérez-Bouret, Kelly Zenón-Matos, Amanda C. Soto-Ortega, Normary Figueroa-Rijo, and Vanessa D. Bonano-Rodríguez, under the supervision of Assistant United States Attorney Jose Capó-Iriarte, Chief of the Violent Crimes Unit. If convicted, the defendants could face sentencings from 15 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
10 Convicted for Violent Robberies of Area BanksRead the Press Release
HOUSTON – 10 men set for trial this week on charges related to the armed bank robberies of several area financial institutions, including one involving the shooting of an off-duty sergeant, have now been convicted, United States Attorney Kenneth Magidson announced today.
Shelton McGowen, 24, opted to plead guilty before trial was set to begin on Tuesday. During jury selection on Wednesday, seven more entered guilty pleas – Derrick Williams, 28, Marcus Rosemond Tarpley, 32, Reginald Mosley, 37, Joel Keon Jackson, 33, Hakim Ibn Ahmad, 29, Alonzo Horace Harris, 37, and Patrick Wayne Simmons, 29. The final two – Calvin Wesley Gray, 33, pleaded guilty the morning of opening statements, while Dwayne Holmes, 35, entered his guilty plea following the government’s opening remarks and with a witness about to take the stand.
All men were convicted of conspiracy to commit bank robbery, multiple bank robbery charges as well as brandishing and/or discharging a firearm during commission of a violent crime.
An 11th defendant, Anthony Demonde Nowlin, 24, had previously pleaded guilty earlier this year to bank robbery and conspiracy to interfere with commerce through bank robbery.
The government contended in its opening remarks that the defendants were part of a sophisticated criminal organization that planned and executed violent takeover style bank robberies of banks inside grocery stores. The conspiracy began on May 4, 2007, and ended with the arrest of some of the men on Sept. 16, 2011.
According to court records, the defendants would “case” banks and credit unions that were located in grocery stores, using force, violence and intimidation to rob them. During the robberies, which were committed on weekday mornings between 9:00 a.m. and noon, the defendants wore dark clothing, gloves, material over their faces and were armed with semi-automatic pistols, shotguns and Uzi style firearms to intimidate the bank employees. The men would also use stolen vehicles during the robberies to elude law enforcement.
During the Aug. 4, 2011, robbery of Wells Fargo Bank in Sugar Land, the robbers shot an off-duty sergeant with the Harris County Sheriff’s Office who was in the bank on personal business. He survived.
Tarpley, Nowlin, Ahmad, Mosley, McGowen and Williams were arrested on the morning of Sept. 16, 2011, on Interstate 45 North after several were observed both driving and going in and out of a stolen Dodge Intrepid. Officers later observed McGowen enter the Associated Credit Union for the purpose of casing it for a robbery. Law enforcement officers observed several suspicious vehicles one with paper plates near the Kroger that housed the Associated Credit Union on the day of their Sept. 16 arrest. Due to previous robberies of groceries store banks and credit unions, law enforcement had reason to believe that the defendants were about to commit an armed bank robbery.
Further investigation led to the identification of the additional five defendants involved in the scheme resulting in the federal indictment for multiple bank robberies in the greater Houston area. After the dismantling of this 11-man crew, no further violent takeover style bank robberies occurred inside of bank grocery stores.
The conspiracy charge carries as possible punishment a term of five years in federal prison as well as a $250,000 fine. For each conviction of bank robbery, the men also face as much as 20 years in prison and $250,000 fine. Use of a firearm in furtherance of a crime of violence will result in an additional minimum sentence of either seven or 10 years and up to life in prison which must be served consecutively to any other prison term imposed.
All defendants remain in custody pending sentencing. U.S. District Judge David Hittner, who presided over the trial, will set that hearing at a later date.
This matter was investigated by the FBI Bank Robbery Task Force which is comprised of personnel from the FBI, Houston Police Department and the Harris County Sheriff's Office with special assistance from the Fort Bend County Sheriff’s Office and the Baytown and Pasadena Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Suzanne Elmilady and Kebharu H. Smith.
Wednesday 29 May 2013
Woman Sentenced to over Four Years in Prison for Defrauding Medicare of $11 Million in Fraudulent Billing SchemeRead the Press Release
LAS VEGAS, Nev. – A woman who defrauded the Medicare program of $11.1 million in a fraudulent medical equipment billing scheme, was sentenced today to 51 months in prison, three years of supervised release, and criminal forfeiture of $11.1 million in assets, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Alegria Phankonsy, 43, formerly of Orange County, Calif., but currently in custody, was sentenced by U.S. District Judge Kent J. Dawson. Phankonsy pleaded guilty in November 2012 to one count of health care fraud and one count of tax evasion.
According to the indictment and the facts supporting the guilty plea, between about March 2005 and February 2010, Phankonsy operated several medical equipment supply companies in Las Vegas, Proforma Medical Source, Divine Health and Freemotion Plus Medical Supply. Phankonsy operated the first two companies using the alias’ Marie Villanueva and Marie Phan, respectively, and operated Freemotion using the name Phankonsy. Between about March 2005 and March 2010, Phankonsy fraudulently billed Medicare for medical equipment, such as leg prostheses and power wheelchairs that had not been ordered by a physician, were not needed by clients or were not provided to clients at all. To identify clients, Phankonsy paid “marketers” in southern California to obtain patients for her various companies. The marketers provided these clients with money in exchange for their Medicare information, which was used to bill Medicare for the unnecessary items or items not provided. The scheme resulted in Phankonsy receiving $11.1 million to which she was not entitled.
For the tax years 2006, 2007, and 2008, Phankonsy prepared and submitted false individual income tax returns by underreporting the income she earned from the Medicare fraud scheme. During those three years, Phankonsy underreported approximately $7.8 million in gross receipts, resulting in a total tax loss of approximately $2.4 million. Phankonsy also appended fraudulent W-2 forms to her returns and falsely represented that she had made significant estimated tax payments, when she had not.
The case was investigated by the Office of the Inspector General for Health and Human Services and IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Crane M. Pomerantz.
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.Winchester Man Pleads Guilty to 2nd Degree MurderRead the Press Release
Defendant also Admits Using a Firearm in a Crime of Violence
COEUR D’ALENE – Kenneth D. Broncheau, 48, of Winchester, Idaho, pleaded guilty today in federal court to one count of second degree murder and one count of using a firearm in a crime of violence, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Broncheau, admitted that on the evening of June 21, 2012, he intentionally shot and killed his mother, Carol Haskell, at their residence located on the Nez Perce Indian Reservation. According to the plea agreement, Broncheau fired two shots from a Savage Arms .243 rifle; the first bullet missed Haskell, the second struck her in the torso causing a mortal injury. Broncheau then retrieved a container of gasoline from a shed located on the property and returned to the residence. According to the plea agreement, Broncheau poured gasoline on the victim’s body and set it afire. A neighbor responding to the screams and gunshots, removed the rifle from Broncheau’s hands. Broncheau was taken into custody by law enforcement shortly thereafter and has remained in custody since that time.
Count one, second degree murder, is punishable by up to life in prison, a maximum fine of $250,000, and up to five years of supervised release. Count two, using a firearm in a crime of violence, carries a mandatory minimum term of 10 years in prison, consecutive to the sentence imposed in count one.
Sentencing is set for August 19, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
“Today’s plea is a significant step in addressing violence against women in Indian Country,” said Olson. “Sadly, this defendant intentionally took his mother’s life. Although his guilty plea cannot fill the void left by his mother’s death, it should send a strong message that federal, state, tribal and Lewis County law enforcement agencies are working cooperatively to investigate and prosecute violent crime on the Nez Perce Reservation.”
The case was investigated by the Federal Bureau of Investigation, Nez Perce Tribal Police, Idaho State Police, and the Lewis County Sheriff’s Office.
West Haven Man Sentenced to Three Years in Federal Prison for Distributing CrackRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that AARON MOORE, also known as “Boogs,” 24, of West Haven, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 36 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
This matter stems from a joint law enforcement investigation conducted by the FBI New Haven Safe Streets Task Force, the DEA New Haven Task Force, the New Haven Police Department and the Hamden Police Department. Through the use of court-authorized wiretaps, investigating officers identified and dismantled a large drug-trafficking organization that was centered in the Newhallville section of New Haven and Hamden, and was responsible for the distribution of crack cocaine and cocaine throughout the Greater New Haven area.
According to court documents and statements made in court, in August and September 2010, MOORE was intercepted several times over a wiretap ordering distribution quantities of crack cocaine from other members of the drug trafficking organization. He then sold the drug to his own customer base for profit.
On January, 23, 2013, MOORE pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack cocaine”).
Forty-seven individuals have been charged in federal court with various narcotics offenses as a result of this investigation. All have been convicted.
This matter was investigated by the Federal Bureau of Investigation’s New Haven Safe Streets Task Force (composed of members of members of the New Haven, Ansonia, Milford, Hamden and East Haven Police Departments, and the Connecticut State Police and the Connecticut Department of Correction), the Drug Enforcement Administration’s New Haven Task Force (composed of members of the New Haven, West Haven, Meriden, Ansonia, Hamden and Branford Police Departments), along with substantial participation by members of the New Haven and Hamden Police Departments. The United States Marshals Service also has assisted the investigation.
The investigation was funded in significant part by the United States Attorney’s Office Organized Crime Drug Enforcement Task Force and supported by the Office’s Project Safe Neighborhoods and Anti-Gang programs.
This matter is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Robert M. Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Vaughn Guilty PleaRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced today the conviction of a former Operations Manager in connection with a wide ranging federal and state investigation into corruption and fraud surrounding federal environmental laws.
MICHAEL J. VAUGHN, age 33, of Addis, Louisiana, pled guilty this morning before U.S. District Judge James J. Brady to a previously sealed Bill of Information charging him with conspiracy to defraud the U.S. Environmental Protection Agency and to violate the Safe Drinking Water Act, in violation of Title 18, United States Code, Section 371, making false statements within the jurisdiction of the federal government, in violation of Title 18, United States Code, Section 1001, and forfeiture. As a result of his convictions, the defendant faces up to ten (10) years imprisonment, a $500,000 fine, forfeiture of the proceeds of the offenses, restitution to victims, and a three year term of supervised release following imprisonment. The sentencing date has not yet been set.
The defendant’s convictions stem from actions he took while serving as the Operations Manager of FAS Environmental Services, a transportation and disposal company based in Belle River, Louisiana. In that role, the defendant oversaw all operations and employees at the company.
During today’s hearing, the defendant admitted that, while working as the FAS Operations Manager, he took over $22,000 in kickbacks during 2011 and 2012 from a wastewater brokerage firm in exchange for illegally using an FAS injection well in Belle River to dispose of over 380,000 gallons of industrial wastewater in violation of the Federal Safe Water Drinking Act. As part of the scheme, the defendant further admitted that he and his fellow conspirators created and used over 100 false documents, including manifests and work orders, in addition to submitting false reports to regulators in Baton Rouge. Such false and fraudulent documents were designed to conceal the scheme from federal and state government officials and the brokerage firm’s unsuspecting clients.
FAS ownership was unaware of the defendant’s scheme, which resulted in the misuse of FAS resources to the sole benefit of the defendant personally and his fellow conspirators. FAS has cooperated fully throughout the investigation and terminated the defendant’s employment with the company upon learning of the scheme.
U.S. Attorney Cazayoux stated: “My office, together with our federal, state, and local partners, will always be vigilant and aggressive in enforcing federal criminal environmental laws, particularly where violations are accompanied by corporate fraud and corruption. The corruption of our environmental regulatory system presents serious and unacceptable economic and physical risks to everyone living and working in Louisiana, and it will not be tolerated.”
“One of EPA’s primary missions is to ensure that federal laws protecting human health and the environment are enforced fairly and effectively. To do that, we must receive accurate and honest tests and measurements,” said Ivan Vikin, Special Agent-in-Charge of EPA’s criminal enforcement program in Louisiana. “Violators who submit false information undermine the government’s efforts to protect the public and the environment. These illegal actions cannot and will not be tolerated. EPA and its partner agencies will vigorously pursue those who knowingly falsify official information and place the public at potential risk.”
Secretary Peggy Hatch of the Louisiana Department of Environmental Quality stated: “This is an example of local, state and federal agencies working together to keep Louisiana’s environment clean. We are working together so people will think twice and make better decisions when it comes to skirting the environmental laws in order to make money or save money.”
This ongoing investigation is being conducted by this office, the Criminal Investigation Division of the U.S. Environmental Protection Agency, and the Criminal Investigation Division of the Louisiana Department of Environmental Quality. The case is being prosecuted by Assistant United States Attorney Corey R. Amundson who serves as the Senior Deputy Chief of the Criminal Division.
United States Sues Philadelphia Food Warehouse for Holding Food in Filthy ConditionsRead the Press Release
PHILADELPHIA, PA – The United States filed a lawsuit today in federal district court to stop Philadelphia food warehouse New Rich City Trading Corporation, as well as president and owner, Ms. Xiaoping Sun, and manager, Mr. Si Yan Chuen, from selling food that is held in filthy conditions, in violation of the Food Drug and Cosmetic Act. United States Attorney Zane David Memeger announced the filing of the civil complaint.
The Food Drug and Cosmetic Act prohibits companies and individuals from causing articles of food to become “adulterated” while held for sale after shipment of one or more of their components in interstate commerce. The Complaint alleges that United States Food and Drug Administration (“FDA”) inspections of the facility establish that food stored by the defendants is adulterated because the food has been held under insanitary conditions whereby it may have become contaminated with filth. The insanitary conditions and filth include the widespread presence of animals such as rodents, birds, cats, and dogs, as well as the animals’ feces and urine, throughout the facility, including on and around articles of food.
“It is unacceptable for any distributor to expose the food we eat to animals, animal waste, and other filth,” said United States Attorney Zane David Memeger. “The Department of Justice is committed to taking action against those who do not maintain and handle food in a clean environment.”
The United States seeks a permanent injunction to prevent defendants from further adulterating food, and to prevent defendants from further receiving, holding, and distributing food unless and until defendants bring their operations into compliance.
This case was investigated by the Food and Drug Administration. It is being handled by Assistant United States Attorney Stacey L. B. Smith, together with David Sullivan, Trial Attorney from the United States Department of Justice, Consumer Protection Branch. Assistance is being provided by Scott Kaplan, FDA Associate Chief Counsel.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Two Men Involved in Hartford Drug and Gun Trafficking Are SentencedRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that two Hartford men involved in narcotics and firearms trafficking have been sentenced in New Haven federal court.
JEFFREY FANIEL, 31, was sentenced today by U.S. District Judge Janet C. Hall to 92 months of imprisonment, followed by five years of supervised release. On January 2, 2013, FANIEL pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute 28 grams or more of cocaine base (“crack”).
JOHNNY ROSA, also known as “Johnny J,” 20, was sentenced yesterday by Judge Hall to 36 months of imprisonment, followed by three years of supervised release. On November 9, 2012, ROSA pleaded guilty to one count of transferring a firearm to a prohibited person.
This matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End. As a result of the nine-month investigation, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.
According to court documents and statements made in court, FANIEL supplied crack cocaine to Jaeqwan Sheppard, who sold the drug in the Enfield Street area of Hartford. The investigation also revealed that Sheppard sold firearms that he had acquired from ROSA through another co-conspirator.
In addition, between December 2011 and April 2012, ROSA sold a .308 caliber rifle, a .22 caliber rifle and a .25 caliber pistol, as well as quantities of crack and powder cocaine, to an individual working with law enforcement.
The .308 caliber rifle had been reported stolen from a residence in East Hartford in July 2011.
Sheppard pleaded guilty and, on May 1, 2013, he was sentenced to 108 months of imprisonment.
This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction. The case is being prosecuted by Assistant United States Attorney Brian P. Leaming.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Two Massachusetts Men Charged with Invading a Private Conversation Between Two NFL General ManagersRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Joshua Barber, 20 and Nicholas Kaiser, 20, both of Plymouth, Massachusetts, were charged by criminal complaint with intentionally intercepting a wire communication and with making a telephone call without disclosing their identity with the intent to annoy or harass the person at the called number. The charges carry a maximum penalty of five years in prison, a $500,000 fine or both.
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that according to the complaint, Joshua Barber telephoned the office of former Buffalo Bills General Manger Buddy Nix claiming to be Tampa Bay Bucaneers General Manger Mark Dominik. Buddy Nix answered the telephone but there was no one on the line. Defendant Barber then telephoned the office of Mark Dominik claiming to be Buddy Nix.
While Barber was on hold with Mark Dominik's office, Nix's office placed a call using the re-dial function to what was believed to be the office of Mark Dominik. While on hold with Dominik's office, defendant Barber saw the incoming call from Nix. Using the conference function, defendant Barber connected Nix and Dominik without either parties knowledge or consent. That call was subsequently recorded by defendant Kaiser. The complaint further states that after the conversation was recorded, defendants Barber and Kaiser sold the unauthorized recording to a media outlet.
The defendants will make an initial appearance on June 4, 2013 at 10:00 a.m. before U.S. Magistrate Judge H. Kenneth Schroeder.“Under limited circumstances not relevant here, the privacy of communications--a discussion with one’s doctor, among family members and friends, between business associates, or indeed any conversation intended to be private--is the expectation of every citizen," said U.S. Attorney Hochul. "This office will continue to enforce laws which protect the privacy of such communications.”
The criminal complaint stems from the investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Two Arrested for Structuring More Than $100,000 in Financial Transactions Inal Guilty Pleas Entered in Tax Fraud SchemeRead the Press Release
CORPUS CHRISTI, Texas – Kimberly Davis, 27, and Justin Colmenero, 30, both of Corpus Christi, have been indicted as a result of the efforts of a multi-agency investigation into structuring financial transactions, United States Attorney Kenneth Magidson announced today.
The sealed indictment was returned Wednesday, May 22, 2013, and unsealed this morning upon their arrests. They are expected to make an initial appearance before U.S. Magistrate Judge B. Janice Elllington tomorrow afternoon.
Agents also executed federal search warrants at three local businesses and the residences of Davis and Colmenero.
The indictment alleges the defendants structured more than $100,000 in cash deposit transactions over a 12-month period with a domestic financial institution in order to avoid the legal reporting requirements of the bank.
The Bank Secrecy Act of 1970 (BSA) requires financial institutions to file reports with the Treasury Department of cash transactions exceeding $10,000.
“Structuring financial transactions to avoid currency reporting requirements is a serious criminal violation of federal law under the BSA," said Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Lucy Cruz. “We will vigorously investigate alongside our law enforcement partners to identify those allegedly involved in such schemes and suspected of committing this form of money laundering.”
The defendants face up to 10 years imprisonment and a fine up to $500,000, if convicted.
The investigation leading to the criminal charges was conducted in Corpus Christi lead by IRS-CI, Drug Enforcement Administration and the Corpus Christi Police Department. The case is being prosecuted by Assistant United States Attorneys Hugo R. Martinez and Lance A. Watt.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Twenty People Indicted for Conspiring to Traffic Meth in Southwest IdahoRead the Press Release
BOISE – Lena Kettle, 46, of Caldwell, Idaho, Heidi Aguila, 34, of Middleton, Idaho, and Kenneth Jones, 47, of Elverta, California, appeared in federal court yesterday on an 89-count federal indictment charging them and 17 others with conspiracy to distribute methamphetamine; possession with intent to distribute methamphetamine; interstate transportation in aid of racketeering; and use of a communication device in drug trafficking, U.S. Attorney Wendy J. Olson announced today. The indictment was returned on May 16, 2013, and was unsealed by the court on May 22.
In addition to Kettle, Aguila and Jones, the defendants named in the federal indictment are:
- Jason Lee Holmberg, 38, of Middleton, Idaho
- Patrick Siemsen, 55, of Nampa, Idaho
- Ute Hornak, 47, of Nampa, Idaho
- Doreen Obrien, 44, of Caldwell, Idaho
- Jerry Holmberg, 64, of Marsing, Idaho
- John Odenwalt, 33, of Nampa, Idaho
- Randi Seferos, 24, of Boise, Idaho
- Seanna Holmberg, 26, of Caldwell, Idaho
- Crystal Clark, 47, of Fruitland, Idaho
- Steven Richard Richard, 41, of Boise, Idaho
- Robbie Gallegos, 42, of Boise, Idaho
- Adrea Smith, 38, of LaGrande, Oregon
- Randy Beal, 58, of Caldwell, Idaho
- Cynthia Prado, 31, of Boise, Idaho
- Andrew Polney, 51, of Boise, Idaho
- Henry Horne, 65, of Boise, Idaho
- David Echevarria, 48, of Boise, Idaho
Fourteen of the defendants have been arraigned in federal court since the indictment was returned. A trial date has been set for July 2, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise. Defendants Jason Holmberg, Siemsen, Obrien, Jerry Holberg and David Echevarria have not yet made their initial appearances, and no dates have been set.
The indictment alleges that between May 2012 and April 18, 2013, the defendants conspired together to distribute 500 grams or more of a mixture and substance containing detectable amounts of methamphetamine. The indictment alleges that on various dates beginning in March 2013, one or more of the defendants traveled at various times between Idaho and California with the intent to distribute the proceeds of the unlawful activity. In furtherance of the conspiracy, the indictment alleges that one or more of the defendants used communication facilities—a telephone—to facilitate and commit the offenses.
The indictment is the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration, in conjunction with the Nampa Police Department and the Boise Police Department. Other federal agencies participating in the OCDETF program include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Bureau of Land Management, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
An indictment is a means of charging a person with criminal activity. It is not evidence. The person is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tulsa Man Convicted in Child Sex Trafficking CaseRead the Press Release
TULSA, Okla. – U.S. Attorney Danny C. Williams Sr. announced today that a Federal jury convicted Tarran Arnel Brinson, 24, of Tulsa, on six counts related to child sex trafficking.
Following a six day trial, Brinson was found guilty on six of the seven counts charged, including conspiring to recruit, entice, transport, provide, and obtain girls under the age of 18 years knowing and in reckless disregard of the fact that the girls would be caused to engage in commercial sex acts.
The victims in this case were minors recruited by Brinson into prostitution. One victim was a 14 year-old girl when she was recruited. Brinson utilized the social media site Facebook to recruit teenage girls to his commercial sex business.
The case was investigated by the Tulsa Police Department Vice Unit, the FBI, and Homeland Security Investigations. The case is being prosecuted by U. S. Attorney Danny C. Williams Sr. and Assistant United States Attorneys R. Trent Shores and Clinton J. Johnson from the U.S. Attorney’s Office for the Northern District of Oklahoma.
If you have information related to sex trafficking call the National Human Trafficking Resource Center at 1-888-373-7888 or visit the website www.polarisproject.org for more information.
Topeka Man Charged with Producing Child PornRead the Press Release
TOPEKA, KAN. – An investigation that started in Australia has resulted in a Topeka man being charged with producing child pornography, U.S. Attorney Barry Grissom said today.
Jonathan Kearn, 38, Topeka, Kan., is charged with one count of producing child pornography, one count of distributing child pornography and one count of possessing child pornography. The crimes are alleged to have occurred in April and May 2013 in Shawnee County, Kan.
Kearn initially was charged in a criminal complaint filed May 10, 2013, in U.S. District Court in Topeka. An affidavit in support of the complaint alleges the investigation began when an investigator working undercover for the Queensland Police Service in Queensland, Australia, received an email from Kearn. Kearn sent the investigator images of child pornography that were produced by Kearn.
If convicted, he faces a penalty of not less than 15 years and not more than 30 years in federal prison and a fine up to $250,000 on the production charge; a penalty of not less than five years and not more than 20 years and a fine up to $250,000 on the distribution charge and a maximum penalty of 10 years and a fine up to $250,000 on the distribution charge.
ICE Homeland Security Investigations investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.OTHER INDICTMENTS
Steven Michael Gigger, 29, Topeka, Kan., is charged with one count of unlawful possession of a firearm after a felony conviction, one count of unlawful possession of ammunition and one count of unlawful possession of a firearm with the serial number obliterated. The crimes are alleged to have occurred May 19, 2013, in Douglas County, Kan.Gigger was arrested after an incident May 19 in Lawrence, Kan. According to news reports, Lawrence police responded to a disturbance at the bar Club Magic, 804 West 24th St., when they heard gunshots and found a shooting victim on Greever Terrace. According to news reports, a vehicle driven by a second gunshot victim crashed into a police patrol car in the parking lot of a McDonald’s restaurant.
If convicted on the federal charge, Gigger faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Douglas County District Attorney Charles Branson’s office assisted. Assistant U.S. Attorney Greg Hough is prosecuting.
Charles Henderson, Jr., 24, Kansas City, Kan., and Kyser L. Leonard, 40, Kansas City, Kan., are charged with one count of conspiracy to distribute heroin and two counts of distributing heroin within 1,000 feet of the Bethel Neighborhood Center playground in Kansas City, Kan. In addition, Henderson is charged with one count of possession with intent to distribute heroin within 1,000 feet of the Bethel Neighborhood Center and one count of unlawful possession of a firearm by a user of a controlled substance. In addition, Leonard is charged with one count of maintaining a residence in furtherance of drug trafficking at 14 North Tremont in Kansas City, Kan., and two counts of using a telephone in furtherance of drug trafficking. The crimes are alleged to have occurred at various times from Nov. 6, 2012, to May 6, 2013, in Kansas City, Kan.
The government is seeking the forfeiture of $25,139 in proceeds from the alleged crimes.
Upon conviction, the crimes carry the following penalties:
Conspiracy: Not less than five years and not more than 40 years in federal prison and a fine up to $5 million.
Distribution: A maximum penalty of 40 years and a fine up to $2 million.
Possession with intent to distribute: Not less than five years and a fine up to $10 million.
Unlawful possession of a firearm by a user of controlled substances: A maximum penalty of 10 years and a fine up to $250,000.
Maintaining a residence in furtherance of drug trafficking: A maximum penalty of 20 years and a fine up to $500,000.
Using a telephone in furtherance of drug trafficking: A maximum penalty of four years on each count and a fine up to $30,000 on each count.The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
Melissa Jo Brachter, 35, is charged with one count of possession with intent to distribute marijuana and one count of distributing marijuana within 1,000 feet of Ellsworth Junion and Senior High School in Ellsworth, Kan. The crime sare alleged to have occurred April 15, 2013, in Ellsworth County, Kan.
If convicted, she faces a penalty of not less than a year and not more than 20 years and a fine up to $500,000 on the first count and maximum penalty of 20 years and a fine up to $1 million on the second count. The Ellsworth County Sheriff’s Office and the Kansas Highway Patrol investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.
Gregory A. Madinger, II, Topeka, Kan., is charged with unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred April 17, 2013, in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Tony Mattivi is prosecuting.
Jose G. Jimenez, 29, Wichita, is charged with five counts of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred May 21, 2013, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The Wichita Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Three Men Sentenced to Prison for Roles in Northwest Alabama Drug RingRead the Press Release
TUSCALOOSA – Three of four defendants in a methamphetamine- and cocaine-trafficking organization based in northwest Alabama were sentenced today in federal court, announced U.S. Attorney Joyce White Vance and Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.U.S. District Judge L. Scott Coogler sentenced ISMAR GUTIERREZ-PINEDA, 34, of Haleyville, GARY DALE BARTLETT, 51, of Arley, and EMERITO CABRERA, 24, of Russellville, for their roles in a conspiracy to distribute more than 500 grams of methamphetamine, more than 500 grams of cocaine and more than 28 grams of “crack” cocaine in Franklin, Cleburne and Winston counties between August 2011 and November 2012. A fourth member of the conspiracy, EDWIN ISIDRO ALFARO-ENRIQUEZ, 42, of Littleville, is scheduled for sentencing July 30. All four men pleaded guilty in February.
Judge Coogler sentenced Gutierrez-Pineda to 10 years and 10 months in prison on the conspiracy and individual drug distribution charges, as well as for being an illegal alien in possession of a firearm. According to the indictment, Gutierrez-Pineda possessed a Smith and Wesson .38-caliber pistol, a Copperhill .45-caliber pistol, a Marlin .22-caliber rifle, and a Savage 7mm rifle on Nov. 7 in Winston County.
Judge Coogler sentenced Bartlett to two years in prison and Cabrera to three years in prison for the conspiracy and one count each of distributing methamphetamine.
The year-long investigation concluded with the seizure of seven pounds of methamphetamine, multiple ounces of cocaine and multiple firearms and vehicles.
The DEA, Franklin County Sheriff’s Office, Russellville Police Department, Alabama State Troopers, and the Winston County Sheriff’s Office investigated the case. Assistant U.S. Attorney John B. Felton is prosecuting the case.
Temple Inland Sentenced in Federal Court to Pay $3.3 Million in Fine and RestitutionRead the Press Release
TIN, INC. , d/b/a/ TEMPLE INLAND, a Delaware Corporation located in Austin, Texas, was sentenced today by U. S. District Judge Ivan L. R. Lemelle to two years probation and ordered to pay a total criminal penalty of $3.3 million, for negligently causing the discharge of a pollutant from its Bogalusa Facility into the Pearl River and the taking of fish from the Bogue Chitto National Wildlife Refuge, announced U. S. Attorney Dana J. Boente.
TEMPLE INLAND was ordered to $1.2 million in restitution and fined $1.5 million for the harm caused by the negligent discharge to the Pearl River and its tributaries; the loss of Gulf sturgeon (a protected species); and the loss of other aquatic life. One million dollars in restitution will be paid as follows: $900,000 to the Trust for Public Land, a non-profit non-governmental organization, and $100,000 to The Nature Conservancy of Louisiana, also a non profit non-governmental organization, to be utilized for the acquisition, protection and management of lands and waters within the Pearl River Basin south of the Temple Inland wastewater release site. The properties acquired by both non profits will subsequently be conveyed to the United States Fish and Wildlife Service (USFWS), primarily for the application and administration of Federal perpetual management and protections for endangered species, native wildlife, and their habitats within the Pearl River drainage system. The remaining $200,000 in restitution will be paid for a research study to evaluate the river features of the Pearl River and Bogue Chitto in order to determine the potential benefit for Gulf sturgeon recovery, as well as to forecast potential hydrodynamic and geomorpohlogical changes that will be of interest to the local communities and the state. The research study will provide to USFWS a complete assessment of river morphology, habitat composition, and hydrology. The assessment will include acoustic determination of benthic substrate, bathymetric surveys above and below the structures, hydrodynamic assessments to outline current conditions and to forecast future conditions, and biological monitoring.
From the fine amount of $ 1.5 million, Temple Inland will pay community service payments of $500,000 to the Louisiana Department of Environmental Quality to defray the costs of equipment and emergency vehicles to be used in connection with, or in support of, the detection, monitoring, testing, response and/or investigation of dumping, emissions, discharges, spills, or leaks involving violations of environmental regulations and laws; $50,000 to the Louisiana State Police Emergency Services Unit; and $50,000 to the Southern Environmental Enforcement Network for training. Because the community service payment is designated as community service by an organization, Temple Inland cannot seek any reduction in its tax obligations as a result of these payments. In addition, since the payment constitutes community service, Temple Inland cannot characterize, publicize, or refer to the payment as a voluntary donation or contribution.
In addition to the restitution, fine and community service payments, Temple Inland must implement an Environmental Compliance Plan (ECP) approved by the Louisiana Department of Environmental Quality and remain in compliance with all permit requirements, rules and regulations of the Louisiana Department of Environmental Quality.
This case was investigated by the United States Environmental Protection Agency- Criminal Investigative Division, the United States Fish and Wildlife Service, and the Louisiana Department of Environmental Quality-Criminal Investigative Division, and was prosecuted by Assistant United States Attorneys Dorothy Manning Taylor and Spiro Latsis.
Taylorsville Woman Charged with Bank Fraud, Identity Theft in Federal IndictmentRead the Press Release
Charges Allege She Used Identification Documents Belonging to Others to Withdraw Money or Attempt to Withdraw Money From Bank Accounts
SALT LAKE CITY – A grand jury returned a 16-count indictment Wednesday afternoon charging Alisha Turnbow, age 32, of Taylorsville with bank fraud and aggravated identity theft in connection with an alleged identity fraud scheme involving three financial institutions and the unlawfully obtained identities of four individuals.
The indictment alleges Turnbow used stolen identification documents to make or attempt to make withdrawals using the accounts of other individuals on 12 occasions at Zions Bank, Chase Bank, and America First Credit Union. In some instances, she attempted to cash checks by presenting fraudulently signed checks drawn on accounts belonging to other people.
For example, the indictment alleges that on Jan. 24, 2013, Turnbow attempted to withdraw $2,300 from a Zions Bank account using the identification of another person. The next day, she used the identification of another person to make $4,500 in withdrawals at three America First Credit Union branches. On Jan. 31, 2013, she attempted to cash a $2,000 check at Chase Bank. The conduct alleged in the indictment took place from about Jan. 24, 2013, through at least Feb. 8, 2013.
Turnbow is charged with 12 counts of bank fraud in the indictment. The potential maximum penalty for each count of bank fraud is 30 years in federal prison and a fine of up to $1 million. The indictment also includes four counts of aggravated identity theft. Each identity theft count carries a potential two-year minimum mandatory sentence and a fine of up to $250,000.
The indictment also seeks the forfeiture of $1,900 in cash the defendant had in her possession at the time of her arrest. The indictment alleges the money constitutes proceeds from criminal conduct.
The case is being prosecuted as a part of efforts by the Utah Identity Theft Task Force.
“Identity theft cases routinely involve transactions from several jurisdictions. Bringing them together in a single federal prosecution is an efficient use of resources in these times of tight budgets,” said U.S. Attorney David B. Barlow. “Combining the transactions into a single case also helps demonstrate the scope and impact of the alleged conduct.”
Turnbow is in state custody. A federal warrant will be issued for her arrest and an initial appearance will be scheduled for her in federal court.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Tax Return Preparer Pleads Guilty to More Than $1 Million in Tax FraudRead the Press Release
Orlando, Florida - United States Attorney Robert E. O'Neill announces that Obnes Latigue (50, Orlando) pleaded guilty today to three counts of aiding in the preparation of false tax returns. He faces a maximum penalty of 3 years in federal prison for each count. His sentencing hearing has been set for August 21, 2013. Latigue was indicted on April 10, 2013.
According to his plea agreement, Latigue was the owner of a tax return business called “Tax Winners Enterprises, Inc.” For the tax years 2006, 2007, and 2008, Latigue prepared returns for individuals in which he falsified the amounts of deductions and tax credits owed to the taxpayers. As a result, those taxpayers received undeserved tax refunds. Latigue fraudulently claimed education credits for clients who never attended college. He also inflated itemized deductions. As a result of the false returns prepared by Latigue, the Internal Revenue Service issued more than $1.1 million in undeserved refunds. Latigue has agreed to repay the IRS that amount in restitution.
This case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
Tax Preparer Pleads Guilty to Defrauding the IRSRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a tax preparer pleaded guilty to devising and executing a scheme to defraud the Internal Revenue Service (“IRS”). Ieisha Smith pleaded guilty to one count of false claims. Smith, who was indicted on December 3, 2012, entered her plea before United States District Court Judge Ann D. Montgomery.
In her plea agreement, Smith admitted that she began the scheme in February 2009, when individuals came to her home for assistance in filing their income taxes. Specifically, she filed false tax returns on their behalf by claiming that taxes had been previously withheld when that was not the case and that refunds were therefore due, when she knew that to be false. The IRS calculated the total amount Smith claimed through the fraudulent tax returns to be approximately $765,000.
For her crime, Smith faces a potential maximum penalty of five years in federal prison. Judge Montgomery will determine her sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the IRS-Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.According to the IRS, approximately 60 percent of taxpayers use tax professionals to prepare and file their tax returns, with these paid preparers now collectively responsible for more than 80 million individual tax returns annually. “Tax return preparer fraud” is one of the IRS’s “Dirty Dozen Tax Scams.” For more information about the fight against tax fraud or how to choose a reliable tax return preparer, visit http://www.irs.gov/uac/Tips-for-Choosing-a-Tax-Return-Preparer.
Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.
Tangipahoa Man, Frank Donewar, Sentenced for Illegal Wagering OperationRead the Press Release
FRANK DONEWAR, 57, a resident of Hammond, Louisiana, was sentenced today by U.S. District Court Judge Kurt D. Englehardt for transmission of wagering information and money laundering, announced U. S. Attorney Dana J. Boente.
According to court documents, from January 2005 through February 2012, DONEWAR placed illegal bets and wagers on sporting events and converted ten thousand dollars ($10,000) in cash into a Certificate of Deposit with a local financial institution knowing that the transaction was designed in whole or in part to conceal and disguise, the nature, location, source, ownership, and control of illegal gambling proceeds.
Judge Engelhardt sentenced DONEWAR to four years probation including ten months of home incarceration with electronic monitoring. In addition, Judge Engelhardt ordered the defendant to pay a $10,000 fine which is due immediately.
“Frank Donewar was sentenced today for operating an illegal sports wagering business and concealing his proceeds by conducting illegal financial transactions,” stated Gabriel Grchan, Special Agent in Charge, IRS- Criminal Investigation New Orleans Field Office. “IRS Criminal Investigation is committed to unraveling complex money laundering schemes, and will continue to work closely with the U S Attorney’s Office to prosecute those individuals who engage in illegal enterprises.”
This case was investigated by special agents from the Internal Revenue Service-Criminal Investigation Division. The prosecution of this case is being handled by Strike Force Chief and Assistant U. S. Attorney Brian M. Klebba.
Tampa Man Sentenced to 42 Months for Tax FraudRead the Press Release
TALLAHASSEE, FLORIDA – Kraig Antonio Davis, 23, of Tampa, Florida, was sentenced to serve 42 months in federal prison for tax fraud, mail fraud, and aggravated identity theft. Davis was also ordered to pay $77,081 in restitution to the Internal Revenue Service.
He was involved in a scheme to use the personal identifying information of individuals, including their names, dates of birth, and social security numbers, to submit fraudulent income tax returns to the IRS. Davis conducted online searches to locate deceased victims’ personal information, which he used to file the false income tax returns. He then used victims’ information to obtain prepaid debit cards for the deposit of the fraudulently obtained refunds. He caused more than a dozen fraudulent refunds to be issued, resulting in a loss of approximately $77,081 to the IRS. Davis also filed a false income tax return in his own name resulting in a tax refund of $4,975.
U.S. Attorney Pamela Marsh said, “This office is committed to vigorously prosecuting those individuals who steal the identities of other individuals and use those stolen identities to fraudulently obtain large amounts of money from the Government. We have intensified our efforts, along with our federal, state, and local law enforcement partners, to identify and bring to justice those who seek to defraud the government and the taxpayers.”
U.S. Attorney Marsh praised the work of the Leon County Sheriff’s Office, the U.S. Postal Inspection Service, and the Internal Revenue Service-Criminal Investigations, whose joint investigation led to the conviction in the case. The case was prosecuted by Assistant U.S. Attorney Winifred Acosta NeSmith as part of a Department of Justice initiative to fight stolen identity refund fraud (SIRF). In September 2012, the Department issued Tax Division Directive 144, which sets forth expedited Department review procedures for SIRF cases, enabling law enforcement to respond quickly and effectively to the grave challenges presented in SIRF cases and to prevent the victimization of innocent taxpayers whose identities are stolen by fraudsters.
Syracuse, New York - Press Conference regarding arrests in a large-scale Central New York drug organization based in Oneida County.Read the Press Release
United States Attorney Richard S. Hartunian will hold a Press Conference today regarding arrests in a large-scale Central New York drug organization based in Oneida County.
DATE: May 29, 2013
TIME: 2:00 pm
LOCATION:
United States Attorney’s Office
100 S. Clinton Street, Room 900
Syracuse, New York 13261No further information will be released prior to the Press Conference.
St. Paul Man Pleads Guilty to Robbing US BankRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 47-year-old St. Paul man pleaded guilty in connection with the December 13, 2012, armed robbery of the US Bank branch located at 711 Cleveland Avenue South in St. Paul. David Judin Greer pleaded guilty to one count of armed bank robbery and one count of brandishing a firearm during a crime of violence. Greer, who was indicted on February 5, 2013, entered his plea before United States District Court Judge Patrick J. Schiltz.
In his plea agreement, Greer admitted that on December 13, he stole $3,952 from the bank after showing the victim teller the revolver grip. According to a law enforcement affidavit filed in the case, a man, later identified as Greer, walked into the bank at approximately 2:00 p.m. He approached the teller counter, showed the gun, and demanded twenties, fifties, and one-hundred-dollar bills. The teller took money from the cash drawer and stuffed it into the white plastic bag that Greer provided. After demanding and receiving even more money, he fled the premises.
Immediately following the robbery, the Federal Bureau of Investigation released to the public digital images of the robber. Later that same day, the FBI received a telephone call from an anonymous individual who identified the robber as Greer. Authorities then began surveillance on Greer’s residence.
On December 29, 2012, the FBI received a call from the St. Paul Police Department, indicating officers there had just conducted a welfare check on Greer at the request of a family member. Officials subsequently transported Greer to Regions Hospital, where Greer gave law enforcement consent to search his residence. There, officers located the revolver used in the bank robbery. It was hidden above the duct work in the basement.
For his crime, Greer faces a potential maximum penalty of 25 years in prison on the armed bank robbery count, and a potential maximum penalty of life in prison on the brandishing count, which carries a mandatory minimum penalty of seven years. Judge Schiltz will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the FBI and the St. Paul Police Department. It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.St. Michael Man Sentenced for Involuntary ManslaughterRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on May 29, 2013, Jamie Lee Belgarde of St. Michael, N.D., was sentenced before U.S. District Judge Ralph R. Erickson on a charge of involuntary manslaughter. Belgarde pleaded guilty to the charge on March 6, 2013.
Judge Erickson sentenced Belgarde to two years’ imprisonment to be followed by three years of supervised release. Belgarde was ordered to pay restitution in the amount of $4,500 to the Spirit Lake Tribe and to pay a $100 special assessment to the Crime Victim's Fund.
On June 23, 2012, Belgarde, 38, while intoxicated and driving at a high rate of speed, failed to negotiate a curve in the road, causing the vehicle to leave the road. The vehicle vaulted, rolled, and eventually came to rest upside down in a field.
Belgarde’s brother, Donald Belgarde, Jr., who was a passenger in the vehicle, was pronounced dead at the scene. The incident happened on the Spirit Lake Indian Reservation.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Assistant U.S. Attorney Janice M. Morley prosecuted the case.
Seven People Charged in $2 Million Tax Refund Check ScamRead the Press Release
NEWARK, N.J. – Seven people allegedly involved in an extensive scheme to obtain millions of dollars through fraudulently obtained refund checks issued by the U.S. Treasury were charged today with conspiring to steal government funds, U.S. Attorney Paul J. Fishman announced.
Fausto Bernard, 48, of Newark, N.J., was arrested this morning by special agents of IRS-Criminal Investigation, postal inspectors from the U.S. Postal Inspection Service, and special agents of the U.S. Secret Service. Gloria Rivera, 39, of Bronx, N.Y.; and Lourdes Ortiz, 40, of Ridgewood, N.Y. surrendered to special agents of the USPS-OIG. Luis Pena, 43, of Yonkers, N.Y., was arrested Tuesday night by special agents of the U.S. Postal Service, Office of the Inspector General. They will make their initial appearances before U.S. Magistrate Judge Madeline Cox Arleo this afternoon.
Defendant Raymundo Hernandez, 34, of Bronx, N.Y., is incarcerated in the Southern District of New York on other charges and is scheduled to make his initial court appearance on Friday.
Defendants Wellington Feliz, 30, of Bronx, N.Y., and Isaias Hernandez, 38, of Bronx, N.Y., remain at large. All seven defendants are charged by criminal Complaint with one count of conspiring to steal U.S. Treasury checks.
According to the criminal Complaint unsealed today:
Background on Stolen Identity Refund Fraud
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that results in more than $2 billion a year in losses to the treasury. SIRF schemes generally share a number of hallmarks:
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
- SIRF participants complete 1040 tax return forms using the fraudulently-obtained information and falsifying wages earned, taxes withheld and other data, always ensuring that fraudulent tax return generates a refund.
- They direct the U.S. Treasury Department to mail the refund checks to locations that the perpetrators control or can access. In some cases, SIRF perpetrators bribe mail carriers to remove the refund checks from their mail routes.
- With the fraudulently obtained refund checks in hand, SIRF perpetrators generate cash proceeds by depositing the checks into bank accounts that they control.
The Investigation
From December 2011 through April 2013, the defendants allegedly engaged in a SIRF scheme that resulted in more than $2 million in losses to the U.S. Treasury. The conspirators directed fraudulent treasury checks to addresses along a mail route they controlled. Once the checks had been intercepted, they were passed along to others and deposited into bank accounts controlled by the conspirators. The resulting proceeds were quickly withdrawn from the bank accounts and used for various personal expenses, including gambling in Atlantic City casinos and purchasing cars.
Rivera and Ortiz were U.S. Postal Service mail carriers who were allegedly bribed to divert checks from their mail route in Queens. After intercepting the checks, Rivera delivered them to Pena for approximately $400 per check. The fraudulently obtained checks ultimately were deposited into straw bank accounts controlled by Feliz, Isaias Hernandez, Raymundo Hernandez, and Bernard.Feliz, Isaias Hernandez, Raymundo Hernandez, and Bernard incorporated businesses in New York or New Jersey. Within a few days of incorporating each business, they opened up a straw bank account at a Sovereign Bank branch in the business’ name. For the next few months, they deposited hundreds of thousands of dollars in fraudulently obtained checks into the straw bank accounts and quickly withdrew significant sums of cash.
Isaias Hernandez, Feliz, and Raymundo Hernandez used the proceeds of the scheme to purchase vehicles at auction. Raymundo Hernandez spent thousands of dollars at Atlantic City casinos.
The conspiracy charge is punishable by a maximum potential penalty of 10 years in prison and a fine of up to $250,000, or twice the gain or loss caused by the offense.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; and special agents of the U.S. Postal Service-Office of the Inspector General, under the direction of Special Agent in Charge Rafael A. Medina, with the investigation leading to today’s charges.The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations contained in the Complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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Pena, Luis et al. Complaint
Schenectady Woman Indicted on Fraud and Tax ChargesRead the Press Release
Scam Caused the Internal Revenue Service to Send $87,153 to the Woman
Albany, New York — On May 24, 2013, a grand jury returned an indictment charging PATRICIA ALFIERI, age 52, of Schenectady, New York, with (1) five counts of mail fraud; (2) one count of obstructing the Internal Revenue laws; and (3) three counts of filing a false income tax return announced United States Attorney Richard S. Hartunian and Internal Revenue Service Criminal Investigation Special Agent in Charge Toni Weirauch. Trial is set for July 29, 2013 before the Honorable Gary L. Sharpe in Albany, New York.
Counts 1 through 5 charge the defendant with mail fraud. Count 6 charges the defendant with obstructing the Internal Revenue laws. The indictment alleges that the defendant mailed checks to the Internal Revenue Service totaling $3,672,327, drawn on (a) accounts which did not exist; (b) accounts which were closed; and (c) accounts with insufficient funds, causing the Internal Revenue Service to send her six “overpayment” refunds totaling $87,153.99. The maximum potential penalty for each of Counts 1 through 5 is imprisonment for 20 years, supervised release for 3 years, and a fine of $250,000 or twice the gross pecuniary gain or loss. The maximum potential penalty for Counts 6 is imprisonment for 3 years, supervised release for 1 year, and a fine of $3,000 or twice the gross pecuniary gain or loss.
Counts 7 through 9 charge the defendant with filing false personal income tax returns for 2008 through 2010. The indictment alleges that the defendant submitted false returns claiming that she had paid real estate taxes and home mortgage interest when she had not and also that her employer had withheld more income tax than it had. The maximum potential penalty for each of Counts 6 through 9 is imprisonment for 3 years, supervised release for 1 year, and a fine of $100,000 or twice the pecuniary gain or loss.
The Indictment includes allegations for forfeiture of $87,153.99 in proceeds of the mail fraud offenses charged.
ALFIERI was arraigned on May 28, 2013 before the Honorable Christian F. Hummel, United States Magistrate Judge, at the Federal Courthouse in Albany.
This case is being investigated by the Internal Revenue Service, Criminal Investigation Division. This case is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
The charges are merely accusations and the defendant is presumed innocent until and unless proven guilty.
LOCAL CONTACT:
Elizabeth C. Coombe
Assistant U.S. Attorney
Tel: (518) 431-0247San Diego Psychologist Sent to Prison in $1.5 Million Dollar Fraud SchemeRead the Press Release
United States Attorney Laura E. Duffy announced that Roberto J. Velasquez, a San Diego area clinical psychologist, was sentenced today for perpetrating a multi-year fraud scheme to falsify medical certifications to the federal government. In today’s court hearing, Chief District Judge Barry Ted Moskowitz sentenced Velasquez to serve 21 months in federal prison, followed by two years of supervised release and ordered Velasquez to pay more than $1.5 million in restitution to the Social Security Administration.
According to court documents, Velasquez masterminded a scheme whereby he falsely certified that dozens of patients were disabled, when in fact they were not. To further the fraud, Velasquez made up patient histories, fabricated test results, suggested symptoms and complaints that did not exist, intentionally underestimated patient scores on standardized tests, and lied about the length of time he had been seeing the patients. In exchange for each false report, Velasquez charged his patients a $200 kickback.
In his plea agreement, Velasquez admitted that he falsified two different types of disability reports. First, Velasquez falsified Medical Certification for Disability Exception Forms (Forms N-648), which are used by the Department of Homeland Security during the naturalization process. Velasquez’s false certifications allowed certain immigrants to avoid taking the English language and Civics portions of the U.S. citizenship exam. Based on the fraudulent N-648 forms, the Department of Homeland Security granted disability exemptions to approximately 50 immigrants who were not actually disabled.
Velasquez also admitted that he submitted fraudulent medical reports to the Social Security Administration, falsely certifying that certain patients were eligible for disability benefits when he knew they were not. Beginning in 2006, and continuing up to the date of Velasquez’s arrest in April 2012, the Social Security Administration paid out at least $1.5 million in unwarranted disability benefits based on Velasquez’s false certifications. Velasquez also admitted that approximately 33% of his patient files contained fabrications, false statements, and false certifications of disability.
The fraud was uncovered through an undercover operation conducted jointly by the Department of Homeland Security, Immigration and Customs Enforcement/Homeland Security Investigations, and the Office of Inspector General, Social Security Administration. The investigation revealed Velasquez’s disregard for federal disability requirements. He coached his patients who were attempting to skirt the citizenship requirements, instructing them to use poor English during their interviews and not mention that they had a college education. Velasquez also lied about the length of time he had been treating his patients, in order to create a “track record” that would satisfy reviewers at the Social Security Administration, where he had previously worked as a consultant.
This prosecution is a part of the United States Attorney’s Health Care Fraud initiative. United States Attorney Duffy noted, “Combating health care fraud is a top priority of the Department of Justice. Rather than exercising his professional medical judgment to help his patients, this Defendant corrupted the integrity of the system in order to line his own pockets.”
“This investigation uncovered a multi-year fraudulent scheme that exploited the naturalization process for an illicit gain,” said Derek Benner, special agent in charge for HSI San Diego. “HSI is committed to working closely with our counterparts at USCIS to aggressively pursue those who seek their own enrichment by perpetuating immigration benefit fraud that undermines the integrity of America’s legal immigration system.”
Social Security Administration, Office of Inspector General Special Agent in Charge David F. Butler added, “The egregious nature of this crime, facilitated by a trained, qualified clinical practitioner who was entrusted to certify his patients’ disabilities to the federal government for purposes of determining their eligibility for Social Security benefits, cannot and will not be tolerated by the Social Security Administration’s Office of the Inspector General. When brought to our attention, we will aggressively investigate all individuals who are paid and trusted by the government to provide material information concerning an individual’s benefit eligibility.”
DEFENDANT CRIMINAL CASE NO. 12cr1750-BTM Roberto J. Velasquez SUMMARY OF CHARGESCount One - Title 18, United States Code, Section 1546 – False Statements in Immigration
INVESTIGATING AGENCIES
Documents
Count Two - Title 42, United States Code, Section 1383a(a)(2) - False Statements in Applications
for SSI Disability BenefitsUnited States Immigration and Customs Enforcement’s Homeland Security Investigations
Office of Inspector General, Social Security AdministrationRed Lake Man Pleads Guilty to Assaulting ManRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 19-year-old Red Lake man pleaded guilty to assaulting a man inside a home located on the Red Lake Indian Reservation. Micah James Waybenais pleaded guilty to one count of assault resulting in serious bodily injury. Waybenais, who was indicted on October 10, 2012, entered his plea before United States District Court Judge John R. Tunheim.
In his plea agreement, Waybenais admitted that on September 11, 2012, he struck the victim with his hands and feet, dragged the victim back into a bedroom after tying speaker wire around his neck. The victim’s injuries included a potentially life-threatening laceration that ran from ear to ear on his neck, requiring hospitalization.
For his crime, Waybenais faces a potential maximum penalty of ten years in prison. Judge Tunheim will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Federal Bureau of Investigation and the Red Lake Tribal Police Department. It is being prosecuted by Assistant U.S. Attorney Clifford B. Wardlaw.Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.
Pocatello Woman Sentenced to Federal Prison for Trafficking MethRead the Press Release
POCATELLO – Marilyn N. Leones, 42, of Pocatello, was sentenced yesterday to 25 months in prison followed by three years of supervised release for possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Leones pleaded guilty to the charge on December 18, 2012.
According to court documents, Leones admitted that on various dates, including October 31, 2011, she distributed in total 50 grams of a mixture or substance containing methamphetamine.
Four co-defendants were sentenced in April 2013 to serve a combined total of 271 months in prison. Juan Aguilar, a Mexican national, and Juan Mendoza, of Menan, Idaho, were sentenced for possession with intent to distribute in excess of 50 grams of methamphetamine. Douglas I. McAdam, of Pocatello, was sentenced to 33 months for possession with intent to distribute in excess of five grams of methamphetamine. Jose Rios-Jimenez, a Mexican national, was sentenced to 16 months – time served – for possession of a firearm by a prohibited person and illegal entry of a removed alien.
Co-conspirator Raymond Camacho, a/k/a Jesus Mendoza Nunez, 58, a Mexican national, pleaded guilty on January 24 to possession with intent to distribute in excess of 50 grams of methamphetamine. A sentencing date has not been set.
The case was investigated by Idaho State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Chubbuck Police Department.
Pleas Entered in Panama Unit CaseRead the Press Release
McALLEN, Texas – Four members of the now defunct Panama Unit have been convicted, United States Attorney Kenneth Magidson announced today. Jonathan Trevino, 29, Claudio Mata, 35, and Eric Alcantar, 29, all of McAllen, and Salvador Arguello, 34, of Edinburg, entered guilty pleas just a short time ago before United States District Judge Randy Crane. Also pleading guilty today was a fifth individual, Gerardo Mendoza-Duran, 30, of Pharr, who was a member of the Hidalgo County Sheriff’s Office (HCSO) but not part of the Panama Unit itself.
Trevino, Arguello, Mata and Alcantar entered guilty pleas to one count of conspiring to possess with the intent to distribute more than five kilograms of cocaine, while Mendoza-Duran pleaded guilty to attempting to aid and abet the possession with the intent to distribute more than five kilograms of cocaine.
From 2010 to December of 2012, Trevino, Arguello, Mata and Alcantar utilized their positions as law enforcement officers to steal narcotics and currency. All four were members of the Panama Unit which was a drug task force operated by the HCSO and comprised of HCSO deputies and officers with the Mission Police Department. The investigation revealed the defendants, upon learning the location of drugs and currency, would use their positions to gain entry into residences and vehicles in order to steal the contraband. Subsequently, the narcotics would be sold to other traffickers for a profit.
Additionally, in exchange for thousands of dollars, Trevino and Mendoza-Duran agreed to use their law enforcement positions to escort multi-kilogram quantities of cocaine as it traveled through Hidalgo County.
Seven others are also charged in relation to this case. Their cases remain pending and they are considered innocent unless proven guilty though due process of law.
All five convicted today face a minimum of 10 years and up to life in prison, along with a potential fine up to $10 million. U.S. District Judge Randy Crane, who accepted the pleas, has set sentencing for Sept. 10, 2013.
The investigation leading to the charges was conducted by the Drug Enforcement Administration, FBI and Homeland Security Investigations. Assistant United States Attorneys James Sturgis and Anibal Alaniz are prosecuting the case.
Owner of A Dallas Medical Equipment Supply Company Is Sentenced to 30 Months in Federal Prison on Health Care Fraud ConvictionRead the Press Release
Defendant Also Ordered to Pay Nearly $700,000 in Restitution
DALLAS — Olalekan Sorunke, 40, of Rowlett, Texas, was sentenced today by U.S. District Judge Jorge A. Solis to 30 months in federal prison and ordered to pay $691,175 in restitution, following his guilty plea in February 2013 to one count of health care fraud, stemming from the operation of his business, Lincoln Medical Supply, Inc. (Lincoln), in Dallas. Judge Solis ordered that Sorunke surrender to the Bureau of Prisons on July 10, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Lincoln was a durable medical equipment (DME) supply company. As its owner/operator, Sorunke maintained a valid Medicare group provider number to submit Medicare claims for DME. Sorunke submitted Medicare claims that were not medically necessary or were not provided to Medicare beneficiaries. In one instance, for example, in July 2009, Sorunke submitted a claim to Medicare for providing a heavy-duty wheelchair to a beneficiary, when he knew that this beneficiary did not need a wheelchair, much less a heavy-duty wheelchair. He fraudulently billed Medicare $7,689 for that claim.
In total, Sorunke’s scheme resulted in a loss of $691,175. Sorunke used the fraudulently obtained funds for his own personal use.
The case was investigated by the Dallas Health Care Fraud Prevention and Enforcement Action Team (HEAT) Strike Force, which includes the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG), the FBI and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Mindy Sauter was in charge of the prosecution.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the HEAT Strike Force, go to: http://www.stopmedicarefraud.gov/.
Nez Perce Tribe Member Sentenced in Federal Court for BurglaryRead the Press Release
COEUR D'ALENE – Stefan Hiebert, 20, of Lewiston, Idaho, an enrolled member of the Nez Perce Tribe, was sentenced today in United States District Court to six months in prison followed by three years of supervised release for burglary, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge ordered Hiebert to serve the first six months of supervised release on home detention and pay $10,400 in restitution to the victim. He pleaded guilty to the charge on February 5, 2013.
According to the plea agreement, on two separate occasions in March 2012, Hiebert burglarized a barn located on the Nez Perce Indian Reservation, with the intent to steal elk and deer antlers and sheds he knew to be inside. According to court documents, Hiebert stole approximately 30 antlers and sheds with an estimated value of $10,000.
The case was investigated by the Federal Bureau of Investigation.
Newark Man Sentenced to 46 Months in Prison in Scheme to Steal Checks from U.S. MailRead the Press Release
NEWARK, N.J. – A Newark man was sentenced to 46 months in prison for his role in a scheme to steal personal checks from the U.S. mail, fraudulently endorsed them and deposit them into personal checking accounts, U.S. Attorney Paul J. Fishman announced.
Kurtis Steele, 27, pleaded guilty Feb. 21, 2013 before U.S. District Judge Kevin McNulty to an Information charging him with one count of conspiracy to commit bank fraud. Judge McNulty imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Steele and his conspirators gained access to and stole blank checks that were mailed to unsuspecting victims. Steele and his conspirators then fraudulently endorsed the blank checks for a certain sum and deposited those checks into legitimate bank accounts that they and unnamed conspirators opened at a number of banks, including TD Bank, Bank of America, Capital One Bank, Garden State Community Bank, Hudson City Savings Bank, PNC Bank and Valley National Bank.
Before the victims or banks discovered the checks were fraudulent, Steele and his conspirators had withdrawn the funds, either via Automated Teller Machine (ATM) or by entering the victim bank and filling out a withdrawal slip. U.S. Postal Inspection Service and FBI agents were able to obtain bank video surveillance which captured Steele making fraudulent deposits of the stolen checks and withdrawals of the proceeds of those checks.
Steele and his conspirators deposited $1,478,695 in fraudulent checks stolen from 122 victims. The checks were deposited into 258 different bank accounts opened by the defendants and/or unnamed conspirators. Steele and conspirators’ scheme resulted in $648,194 in losses.
In addition to a prison term, Judge McNulty sentenced Steele to three years of supervised release. Restitution will be determined at a later date.
Several of Steele’s conspirators were previously sentenced for their role in the fraudulent scheme: Constance Bowles, 23, of Newark, was sentenced to six months in prison and six months in a halfway house; Garnet Hinton, 24, of Union, N.J., was sentenced to 23 months in prison; Keonnah McLean, 24, of Newark, was sentenced to 23 months in prison; and Martell Arline, 22, if Newark, was sentenced to 36 months in prison. In addition to the prison terms, each of them was sentenced to three years of supervised release.
U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; and special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the sentences.
The government is represented by Assistant U.S. Attorneys Dara Aquila Govan of the Organized Crime/Gangs Unit in Newark.13-218
Defense Counsel: Stephen A. Turano Esq., Newark
New York Man Pleads Guilty to Possession of False Document Making EquipmentRead the Press Release
Orlando, Florida - United States Attorney Robert E. O'Neill announces that Richard Middleton (36, New York) pleaded guilty today to possessing device-making equipment, with intent to defraud, and possessing a false identification implement intended to be used in the production of a false identification document. Middleton faces a maximum penalty of 15 years in federal prison on each of the two counts. His sentencing hearing is scheduled before Senior U.S. District Judge G. Kendall Sharp on August 21, 2013. Middleton was indicted on February 27, 2013, and arrested in the Eastern District of New York on March 6, 2013.According to documents, on August 20, 2011, deputies from the Osceola County Sheriff’s Office executed a search warrant on a room that Middleton occupied at a timeshare resort in Kissimmee. Inside the room deputies recovered equipment used to manufacture counterfeit credit cards and false identification documents, including a credit card embosser, a foil press “tipping” machine, card making devices, MasterCard hologram stickers, blank plastic cards and holograms typically used in genuine state issued identification cards and driver licenses, more than 1,000 blank American Express and Visa credit cards, and a laptop computer. A forensic review of the laptop revealed evidence indicating its use in the charged crimes.
This case was investigated by the United States Secret Service, with assistance from the Osceola County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
New York Attorney Arrested for Charging Hundreds of Thousands of Dollars for Advertisements Never PlacedRead the Press Release
Attorney Charged in New Jersey Allegedly Steered Payments to Company He Owned
NEWARK, N.J. – Federal agents arrested a New York attorney this morning to face a criminal complaint charging him with defrauding two international companies out of hundreds of thousands of dollars by fraudulently billing them for advertising services that were never provided, U.S. Attorney Paul J. Fishman announced.
Marijan Cvjeticanin, 49, of St. James, N.Y., is charged with one count of mail fraud. He was arrested at his home by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and U.S. Department of State Diplomatic Security Service (DSS), and is scheduled to appear this afternoon before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court.
According to the complaint unsealed today:
From approximately September 1996 to September 2012, Cvjeticanin was employed by a New York law firm specializing in immigration law, first as a paralegal and then as an attorney. Among other clients, the firm represented two international companies – with offices in New Jersey – in connection with various immigration law matters. Cvjeticanin was the case manager handling day-to-day tasks such as filing applications for permanent residency for certain foreign workers of those companies employed in the United States on a temporary basis.
The application process required the companies to place job ads, in the geographic location where a relevant position was located, to demonstrate there were no minimally qualified U.S. citizens available to fill that position. To do that, Cvjeticanin caused his firm to retain a supposed advertising agency, Flowerson Holdings, Inc., a/k/a Flowerson Advertising, which allegedly handled all of the advertisement obligations of the companies in connection with permanent residency applications. Neither the firm nor the companies knew Cvjeticanin owned and controlled Flowerson.
From 2010 through September 2012, the companies paid Flowerson approximately $579,000 for advertisements, but Flowerson did not place the majority of those ads. Instead, Cvjeticanin stole the money and used it for his personal benefit.
If convicted, Cvjeticanin faces a maximum potential penalty of 20 years in prison and a $250,000 fine.U.S. Attorney Fishman praised special agents of ICE HSI, under the direction of Special Agent in Charge Andrew M. McLees in Newark, and DSS, under the direction of Special Agent in Charge Robert Goodrich, with the investigation.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office General Crimes Unit in Newark.The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-215Defense counsel: TBD
Cvjeticanin, Marijan Complaint
New Jersey Man Sentenced to Three Years in Federal Prison for Trafficking OxycodoneRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JULIO BRINEZ, 43, of Palisades Park, N.J., was sentenced today by Senior United States District Judge Warren W. Eginton in Bridgeport to 36 months of imprisonment, followed by three years of supervised release, for trafficking oxycodone.
This matter stems from a year-long investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Norwalk Police Department into the trafficking of oxycodone, cocaine and marijuana in Fairfield County. On three occasions in March 2012, BRINEZ was intercepted over a court-authorized wiretap engaging in discussions involving the illegal distribution of oxycodone.
BRINEZ was arrested on June 22, 2012 and, on January 3, 2013, he pleaded guilty to one count of conspiring to possess with intent to distribute oxycodone. He has been detained since January 22, 2013 after he violated the conditions of his bond.
Sixteen individuals have been charged as a result of this investigation.
This matter is being investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Norwalk Police Department, with assistance provided by the Connecticut State Police and the Bridgeport, Stamford and Stratford Police Departments. The case is being prosecuted Assistant United States Attorneys Peter Markle and Vanessa Richards.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Multi-Agency Law Enforcement Operation Tackles Gun Violence in Miami-Dade CountyRead the Press Release
Operation Smoking Gun III results in federal and state arrests of 97 individuals
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade County State Attorney, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Firearms, Tobacco and Explosives (ATF), Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Neil DeSousa, Acting U.S. Marshal, U.S. Marshal’s Service, and Matthew Boyd, Chief, Miami Gardens Police Department, announced the results of Operation Smoking Gun III, a concerted multi-agency effort to combat the crime and violence associated with illegal firearm and drug trafficking activity in Miami-Dade County.
The United States Attorney’s Office and its federal and state law enforcement partners are committed to reducing the crime and violence associated with illegal firearm and drug trafficking. To this end, over the past year, the U.S. Attorney’s Office, the State Attorney’s Office and federal and state law enforcement have cooperated in a number of joint investigations and prosecutions, collectively called Operation Smoking Gun III, targeting illegal firearms and drug trafficking, including the unlawful sale of prescription drugs. This proactive investigation used undercover agents to purchase guns and drugs from violent and repeat offenders.
Operation Smoking Gun III has yielded substantial results. Since its inception in June 2012, 97 individuals have been arrested on federal and state firearm and narcotics offenses. Federal charges have been brought against 22 individuals. Of those charged federally, 16 have been arrested and will be making their initial appearances in federal court tomorrow. Federal charges against the remaining 6 individuals remained sealed. In addition, approximately 80 individuals have been arrested separately on state narcotics and firearm violations.
Operation Smoking Gun III has resulted in the following seizures:
--248 firearms including 1 sawed off shotgun;
--342 grams crack cocaine;
--1,728 grams cocaine;
--634 grams heroin;
--2473 MDMA pills;
--2874 Oxycodone pills;
--15,208 grams of marijuana;
--5 bullet proof vests;
--576 Percocet pills;
--10 Morphine pills;U.S. Attorney Wifredo A. Ferrer stated, “As a result of this long-term concerted effort, 97 dangerous individuals, the vast majority of whom are previously convicted felons, their guns and their drugs, have been removed from the streets of Miami-Dade and South Florida. Working as a team, we shared intelligence, effectively multiplied our resources, and enhanced our ability to tackle violent crime in this community. We are proud of our collaborative relationship and look forward to many more successful operations -- like this one -- aimed at making our communities safer."
Katherine Fernandez-Rundle, Miami-Dade County State Attorney, stated, “Guns plus drugs always equal violence and death. That’s why such multi-agency law enforcement efforts are important. Every illegal gun dealer and drug dealer we get off the streets of Miami Gardens means less violence for the city’s citizens. Every member of our law enforcement community is committed to that essential goal.”
ATF Special Agent in Charge Hugo J. Barrera stated, “The citizens of the City of Miami Gardens can breathe a little easier tonight. Violence should never become the order of the day. The message is clear; if you choose to use a firearm to inflict violence on the innocent people of this or any other community in South Florida, you will be dealt with swiftly. Together with this seamless integration of federal, state and local law enforcement we can ensure solid investigations, successful prosecutions and long stays in prison for these predators.”
DEA Special Agent in Charge Mark R. Trouville stated, “Whenever money and drugs come together, violence will follow. Where drug trafficking is rampant, neighborhoods can become a war zone bringing havoc to its residents. The DEA is committed to working with the ATF and our local partners to remove these violators off our streets and make our communities safe and drug free.”
Matthew Boyd, Chief of the Miami Gardens Police Department, stated, “The Miami Gardens Police Department has been extremely successful in reducing crime over the last five years. This success continues to create a safer environment for our residents and is a direct result of the cooperation and partnerships at the State and Federal level as evidenced in this multi-agency operation.”
“It is due to Operations like Smoking Gun that the partnership of federal and local law enforcement agencies come together to share resources and remove dangerous criminals off of our streets,” said Neil DeSousa, Acting U.S. Marshal. “The U.S. Marshals Service remains dedicated to this intensive effort, today the City of Miami Gardens is safer because of the commitment by all of the criminal investigators and officers that led this proactive Operation over the course of the year.”
In February 2010, Operation Smoking Gun I, which targeted gang and gun crime in Broward County, resulted in federal charges against 33 defendants with firearm, narcotics, and other offenses. In addition, 63 defendants were separately charged by the Broward County State Attorney’s Office with narcotics and firearm violations.
Then, in July 2011, Operation Smoking Gun II, focusing on Palm Beach County, resulted in federal firearm and narcotics charges against 49 defendants. Of those 49 charged federally, many were felons in possession of a firearm. In addition, approximately 58 defendants were charged separately by the Palm Beach County State Attorney’s Office with narcotics and firearm violations.
U.S. Attorney Ferrer thanked the many law enforcement agencies involved in this Organized Crime Drug Enforcement Task Force (OCDETF)/ South Florida High Intensity Drug Trafficking Area Task Force (HIDTA) operation. In particular, Ferrer thanked the Miami-Dade County State Attorney’s Office, and the agents, detectives and police officers from ATF, DEA, the U.S. Marshal’s Service, and the Miami Gardens Police Department, for their concerted efforts during this long-term investigation. Ferrer also thanked the Miami-Dade Police Department, City of Miami Police Department, City of Aventura Police Department, Florida Department of Law Enforcement, Hialeah Police Department, the Palm Beach Sheriff’s Office, and the Broward Sheriff’s Office for their assistance in this matter. The federal cases resulting from Operation Smoking Gun III are being prosecuted by Assistant U.S. Attorney Bruce Brown. The state cases are being prosecuted by Miami-Dade County Assistant State Attorney Frank Ledee.
Operation Smoking Gun III is the result of an ongoing OCDETF joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The South Florida HIDTA was established in 1990. This program, made up of federal, state and local law enforcement agencies, fosters intra-agency cooperation among law enforcement agencies in South Florida and involves them in developing a strategy to target the region’s drug-related threats to public safety. The South Florida HIDTA uses the funding provided by the Office of National Drug Control Policy (ONDCP) that sponsors a variety of law enforcement initiatives that target the region’s illicit drug threats.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Attachments:
Operation Sledgehammer Defendant List (PDF)A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Morris County, N.J., Man Sentenced to 140 Months in Prison for Distributing Images of Child Sexual Abuse over InternetRead the Press Release
NEWARK, N.J. – A Morris County, N.J., man was sentenced today to 140 months in prison today for possessing and distributing over the Internet images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Khalil Survey, 39, of Lake Hiawatha, N.J., was previously arrested on a Complaint and later pleaded guilty before U.S. District Judge William H. Walls to an Indictment charging him with one count of possession of child pornography and one count of distributing child pornography.According to documents filed in this case and statements made in court:
Special agents of the Department of Homeland Security and other law enforcement executed a search warrant at Survey’s home on Aug. 4, 2011, and seized a computer, an iPhone, and several electronic storage devices that contained images and videos child pornography. The devices included 46,353 images of child sexual abuse, including 983 images involving infants or toddlers, and 783 images involving sadomasochistic abuse. On the defendant’s iPhone, law enforcement found photographs the defendant had taken of himself downloading child pornography onto his home computer.
In addition to the prison term, Judge Walls sentenced Survey to lifetime supervised release and ordered him to pay $300,000 in restitution to the victims.
U.S. Attorney Fishman credited special agents of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark, with the investigation leading to today’s sentencing. He also thanked the Morris County Prosecutor’s Office for its role in the investigation.
The government is represented by Assistant U.S. Attorney Andrew J. Bruck of the U.S. Attorney’s Office General Crimes Unit in Newark.13-217
Defense counsel: Joseph Rotella Esq., Newark
Media AdvisoryRead the Press Release
United States Attorney Brendan Johnson will hold a press conference addressing Human Trafficking on Thursday, May 30, 2013 at 3:00 p.m. CST.
Discussion points to include recent prosecutions of commercial sex traffickers in South Dakota and the formation of a Human Trafficking Task Force.
WHO:United States Attorney Brendan V. Johnson
Minnehaha County State’s Attorney Aaron McGowan
Captain Paul Niedringhaus, Minnehaha County Sheriff’s Office
Lt. Dave McIntire, Sioux Fall Police Department
Joseph Weir, Federal Bureau of Investigation, Supervisory Special Agent
Mike Janak, Homeland Security Investigations, Resident Agent in Charge
WHAT: Press Conference
WHEN: Thursday, May 30, 2013 at 3:00 p.m. Members of the media should arrive by 2:30 to due to extra security measures.
WHERE: United States Attorney's Office 325 S. 1st Ave., Suite 300 Sioux Falls, SD 57104
NOTE: Media must enter through the third floor reception area. ALL media MUST PRESENT GOVERNMENT-ISSUED PHOTO ID (such as driver’s license) as well as VALID MEDIA CREDENTIALS. Press inquiries regarding logistics should be directed to Community Services Coordinator Ace Crawford at 605.343.3913, ext. 2101 or 605.838.6092.
Medford Man Sentenced to 15 Years in Federal Prison for Marijuana Distribution ConvictionRead the Press Release
Oregon Medical Marijuana Program Used as a Cover to Grow Marijuana For Sale.MEDFORD, Ore. - On Tuesday, May 28, 2013, Senior U. S. District Judge Owen M. Panner sentenced Brian Wayne Simmons, 40, of Medford, Oregon, to 15 years in federal prison for conspiracy, and manufacturing and distributing marijuana.
Simmons owned and operated Brian’s Green Thumb Farm on East Gregory Road in Central Point, Oregon, purporting to grow organic vegetables. U.S. Drug Enforcement Administration agents executed a search warrant on Simmon’s farm in October 2011, seizing 456 large marijuana plants. Agents seized an additional 64 large marijuana plants at a second grow site on Dark Hollow Road in Medford. The plants ranged from approximately 5-8 feet tall and produced upwards of 10 pounds of marijuana per plant. Agents also seized thousands of pounds of harvested marijuana being processed at both locations (1,600 pounds dry weight). Simmons had previously registered over 20 persons as “growers” at his marijuana sites, creating the appearance that he was complying with the Oregon Medical Marijuana Act. In fact, evidence established that many of the growers were recruited in name only and took no part in the grow operation. Simmons also recruited persons to tend the marijuana plants for a percentage of the profit, and paid others to trim the marijuana. The investigation revealed that Simmons had been growing and selling marijuana since at least 2009, with documented sales of over $740,000 for the 2009 and 2010 grow seasons. Based on the seized evidence, Simmons had roughly quadrupled the size of his operation by 2011.
Simmons was convicted by a twelve person jury after a trial in Medford, Oregon in December 2012. A co-defendant, Michael Grantski, was acquitted. Another co-defendant, Michael Peru, pleaded guilty, and is pending sentencing.
“This case represents another gross abuse of the Oregon Medical Marijuana Program (OMMP). Under state law, OMMP attempts to provide a mechanism to enable people who suffer from one of several enumerated medical conditions to obtain medicinal marijuana. Unfortunately, criminals like Mr. Simmons hide behind the façade of OMMP in order to sell their illicit product to drug users and drug dealers for profit,” stated U. S. Attorney Amanda S. Marshall. “My office will continue to indict others who violate both state and federal law by producing and selling large quantities of marijuana for profit. We will also take the assets that are used to facilitate the illegal activity and the resulting proceeds in order to take the profit out of this crime.”
This case was investigated by the U.S. Drug Enforcement Administration, with assistance from the Jackson County Sheriff’s Office, Medford Police Department, Ashland Police Department, U.S. Marshals Service, Immigration and Customs Enforcement, Federal Bureau of Investigation, Internal Revenue Service, U.S. Forest Service, and the U.S. Bureau of Land Management, and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
Man Sentenced to over Eight Years in Prison for Defrauding Federal Credit Union in Las VegasRead the Press Release
LAS VEGAS, Nev. – A man who made false statements to a federally insured credit union to obtain a $7.5 million commercial real estate loan, was sentenced today by Senior U.S. District Judge Roger L. Hunt to 98 months in prison, five years of supervised release and ordered to pay restitution to the credit union, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Brent Edward Lovett, 50, of Henderson, Nev., was convicted by a jury in February 2013 of bank fraud. Lovett was permitted to self-report to federal prison by Aug. 2, 2013.
According to the indictment and evidence presented to the jury during the trial, during 2006, Lovett devised a scheme to defraud Lockheed Federal Credit Union by fraudulently obtaining a commercial real estate loan from which he would skim part of the loan proceeds for himself. Lovett controlled Bay Resorts International, which leased two commercial buildings at 2400 N. Tenaya Way in Las Vegas. From about May to June 2006, Lovett caused Bay Resorts to purchase the buildings for $6 million. Lovett caused Bay Resorts to sell the buildings for $10 million to another company he controlled, Equity Resource, Inc. Lovett caused Equity Resource to apply for a commercial real estate loan with Lockheed Federal Credit Union to purchase the buildings, and in the application and supporting documents, Lovett made false statements and omissions regarding Bay Resorts, Equity Resource, and the sales history of the buildings. Based on those false statements, Lockheed Federal Credit Union made a loan to Equity Resource for $7.5 million. Lovett obtained approximately $1.3 million from the proceeds of the sale of the buildings to Equity Resource. Lovett then allowed the buildings to go into foreclosure and kept the balance of the proceeds for himself.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys Sarah E. Griswold and Brian Pugh.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established 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 nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.