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Wednesday 29 May 2013
Louisiana Correctional Officer Pleads Guilty to Covering up Assault on an InmateRead the Press Release
Jason Giroir, 35, a former correctional officer with the Louisiana State Penitentiary (LSP) in Angola, La., pleaded guilty today before U.S. District Judge James J. Brady for the Middle District of Louisiana for his role in covering up an incident in which correctional officers used excessive force against an inmate. Giroir admitted filing a false report and subsequently providing false information to the FBI about the incident. Investigation of the incident is ongoing.
According to the factual basis filed in connection with his guilty plea, on or about Jan. 24, 2010, Giroir, then a major at LSP, heard that an inmate had escaped from his assigned location. Shortly thereafter, the inmate surrendered to prison officials. Giroir, one of the first officers to arrive at the surrender site, handcuffed the inmate and placed him on the back of his truck. Kevin L. Groom Sr., and two other LSP officers accompanied the handcuffed inmate in the rear of Giroir’s truck. During the transport, Giroir saw one of the officers repeatedly swing his asp baton down towards the inmate, and realized that the inmate was being beaten.Some time after this incident, one of the officers who was in the back of the truck approached Giroir to talk about the incident. That officer admitted to Giroir that he had struck the inmate, but denied having used an asp baton.
Giroir also admitted that during the prison’s investigation of this incident, he wrote and submitted a false report denying that officers assaulted the inmate, and that he provided that same false information to the Federal Bureau of Investigation.
Giroir pleaded guilty to falsification of records in a federal investigation and to making a false statement to the FBI. As a result of his guilty plea, Giroir faces a statutory maximum sentence of 25 years.
“Instead of lawfully carrying out his critical public safety responsibilities, Mr. Giroir covered up the violent actions of other officers,” said Deputy Assistant Attorney General for the Civil Rights Division Roy Austin. “The Justice Department will continue to vigorously prosecute officers who cross the line and engage in criminal misconduct.”
U.S. Attorney for the Middle District of Louisiana Donald J. Cazayoux Jr. stated, “our public protection mission in law enforcement necessitates the protection of inmates from physical abuse by those who are charged with guarding them. We will prosecute vigorously those law enforcement officers who are sworn to protect the public and undermine this mission by fabricating and covering up crimes they witness.”
" Mr. Giroir's guilty plea clearly confirms that the FBI pursues all aspects of excessive force incidents, including any attempted obstructions of the investigation of the underlying unlawful use of physical force by others," said FBI Special Agent in Charge Michael Anderson.In a related case before Judge Brady, former LSP Officer Kevin Groom entered a guilty plea.
The investigation in this matter was conducted by Special Agent Taneka Harris of the FBI and prosecuted by Civil Rights Division Trial Attorney AeJean (Angie) Cha and Assistant U.S. Attorney for the Middle District of Louisiana Robert W. Piedrahita.Lorain County Pair Indicted for Human Trafficking, Drug OffensesRead the Press Release
A man and woman from Lorain County were indicted for human trafficking and drug offenses after forcing a 16-year-old girl and 19-year-old woman to have sex for money, law enforcement officials said.
Jeremy Mack, 37, of Elyria, and Ashley Onysko, 23, of Avon Lake, were each indicted on one count of conspiracy to engage in sex trafficking and drug trafficking and two counts of sex trafficking.
“This pair forced people, including a minor, to have sex for money,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “These activities happen all around us and it’s the responsibility of the community and law enforcement to work together to end these crimes.”
“Jeremy Mack and Ashley Onysko used narcotics to gain control over their victims and forced them to engage in sex acts while lining their own pockets with money,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “The FBI and our law enforcement partners will utilize all necessary resources to bring to justice those that victimize our youth.”
“This is an example of local police and federal law enforcement working together to make our community safer,” said Elyria Police Chief Duane Whitely.
Count 1 charges that between December 2012 and April 9, 2013, Mack and Onysko conspired together to provide heroin to Victim 1 and cocaine to Victim 2 and then, after the victims incurred drug debts, used force, threats of force, fraud and coercion to compel them to engage in commercial sex acts.
They did this, in part, by posting photographs of Victim 1 and Victim 2 on backpage.com on a user account that Mack and Onysko created on Dec. 25, 2012, according to the indictment.
In March 2013, Victim 2, a 16-year-old minor, went to Mack’s residence in Elyria after school, at which time Mack gave her cocaine. Mack later told and caused others to tell Victim 2 that she needed to engage in commercial sex acts. She did, after which she turned over all proceeds to Mack, according to the indictment.
From March through April 9, 2013, Mack brandished a firearm in front of Victim 1 and Victim 2, according to the indictment.
Count 2 charges that from February through April 9, 2013, Mack and Onysko caused Victim 1 to engage in commercial sex acts by using force, threats of force, fraud and coercion.
Count 3 charges that from March through April 9, 2013, Mack and Onysko caused Victim 2 to engage in commercial sex acts by using force, threats of force, fraud and coercion.
This case is being prosecuted by Assistant United States Attorneys Bridget M. Brennan and Carole Skutnik following an investigation by the FBI and Elyria Police Department.
An indictment is merely a charge. All defendants are presumed innocent of the charges until proven guilty beyond a reasonable doubt in court.
Lapwai Man Sentenced for Stealing Electric GeneratorsRead the Press Release
COEUR D'ALENE – Michael Eli Wilson, Jr., 23, of Lapwai, Idaho, was sentenced today in federal court in Coeur d’Alene to 40 days in jail followed by 180 days of in-patient drug treatment, for theft exceeding $1,000, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Wilson to serve three years of supervised release. Wilson, an enrolled member of the Nez Perce Indian Tribe, pleaded guilty to the charge on December 11.
According to the plea agreement, Wilson admitted that between April 26 and June 1, 2012, he entered the property of Gem Electric, a small business located in Lapwai, for the purpose of stealing electric generators. Wilson admitted that he sold the generators as scrap metal at Sutton Salvage in Lewiston, Idaho. Sutton Salvage provided records to investigators, which confirmed that Wilson had scrapped electric generators on a number of occasions between April 26 and May 30, 2012. On June 1, employees of Sutton Salvage contacted police after Wilson attempted to scrap additional generators. Wilson absconded before police arrived, but left the generators at the site. The property owner confirmed he was the rightful owner of the generators. Sutton Salvage employees identified Wilson from a photograph lineup. The generators had a value exceeding $1,000.
The case was investigated by the Federal Bureau of Investigation, Nez Perce County Sheriff’s Office, and Nez Perce Tribal Police.
Kyle Lee Fulmer Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 28, 2013, before U.S. District Judge Sam E. Haddon, KYLE LEE FULMER, a 29-year-old resident of Colstrip, pled guilty to involuntary manslaughter. Sentencing has been set for September 11, 2013. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On September 19, 2012, at approximately 2:30 a.m., law enforcement received a call about a one-vehicle rollover crash on South Tongue River road, near Ashland, on the Northern Cheyenne Indian Reservation. The first officer on scene, a deputy from Rosebud County, identified FULMER as the driver of the Chevy pickup involved in the crash. FULMER, who was ejected from the truck, admitted that he was the driver and that he had been drinking. The deceased passenger was found in the passenger seat inside of the pickup wearing a seat belt. The passenger died of multiple acute blunt traumatic injuries to the upper body.
FULMER was interviewed and admitted that he was driving his pickup on South Tongue River road. He lost control of the pickup, drove through a barbed wire fence, rolled down an embankment, and ended up upright in a field. There were beer cans and bottles near the truck. He had been drinking alcohol prior to the crash. His BAC was .137. This analysis was performed on a sample of FULMER's blood taken some hours after the crash.
FULMER is a non-Indian, but the victim was an enrolled member of the Northern Cheyenne Tribe.
FULMER faces possible penalties of 8 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the Bureau of Indian Affairs.
Kinsey N. Miner Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 29, 2013, before Senior U.S. District Judge Jack D. Shanstrom, KINSEY N. MINER, a resident of Billings, was sentenced to a term of:
Prison: 37 months, consecutive to another sentence
Special Assessment: $100
Supervised Release: 5 years
MINER was sentenced in connection with her guilty plea to conspiracy to possess with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
Beginning in February 2012, and continuing until August 2012, MINER distributed methamphetamine she obtained from her source of supply to her customers in the Billings area. MINER also transported quantities of methamphetamine for the sources of supply for a larger organization. MINER regularly communicated with her source of supply, other distributors and customers via cellular telephone and text message.
During the course of her involvement in the larger conspiracy, from February 2012 to August 2012, MINER personally possessed with the intent to distribute and distributed over 50 grams of methamphetamine in the Billings area.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that MINER will likely serve all of the time imposed by the court. In the federal system, MINER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
Kinsey N. Miner Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on March 29, 2013, before Senior U.S. District Judge Jack D. Shanstrom, KINSEY N. MINER, a resident of Billings, appeared for sentencing. MINER was sentenced to a term of:
Prison: 18 months, consecutive to another sentence
Special Assessment: $200
Supervised Release: 3 years
MINER was sentenced in connection with her guilty plea to possession of a stolen firearm and transferring a firearm to felon.
In an Offer of Proof filed by Special Assistant U.S. Attorney Ed Zink, the government stated it would have proved at trial the following:
During the evening hours of January 14, 2012, a Yellowstone County Sheriff's deputy was dispatched to a residence to investigate a report that a man, identified here as Z.Z., was drinking alcohol, in violation of the terms of his felony probation. The deputy arrived at the residence and went inside to speak with Z.Z. Shortly after he made contact with Z.Z., Z.Z. pulled a firearm and began firing at the deputy at a distance of only a few feet. The deputy returned fire, striking Z.Z. multiple times. Z.Z. was transported to St. Vincent's Hospital in Billings where he died from his injuries.
Following the shooting, detectives transported all the witnesses to a separate residence to conduct interviews. When interviewed, MINER gave a detailed statement of the events leading up to the shooting at her home. MINER stated that she had provided Z.Z. with the firearm he used in the shooting. MINER said that in July or August of 2011, she stole the firearm from her grandmother's boyfriend. While visiting her grandmother in Clark, Wyoming, MINER learned that her grandmother's boyfriend had a large collection of firearms. Knowing that Z.Z. wanted a firearm, MINER called Z.Z. and asked him what kind of gun he wanted. Z.Z. had MINER describe the available firearms to him and he selected the Glock handgun. MINER took the firearm and provided it to Z.Z. at a later date.
MINER knew Z.Z. was a convicted felon, on probation, at the time she stole the gun and later when she provided it to Z.Z.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that MINER will likely serve all of the time imposed by the court. In the federal system, MINER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Yellowstone County Sheriff's Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justin Hanley Bright Wings Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 29, 2013, before U.S. District Judge Richard F. Cebull, JUSTIN HANLEY BRIGHT WINGS, a 27-year-old resident of Lodge Grass and an enrolled member of the Crow Tribe of Indians, was sentenced to a term of:
Prison: 41 months
Special Assessment: $100
Supervised Release: 3 years
BRIGHT WINGS was sentenced in connection with his guilty plea to assault resulting in serious bodily injury.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On June 9, 2012, at approximately noon, BRIGHT WINGS was driving a vehicle with five passengers, one of whom was his 11-month-old son. BRIGHT WINGS was drunk while driving and lost control of the vehicle on a highway. The crime occurred within the exterior boundaries of the Crow Indian Reservation.
The vehicle rolled several times and ended up in an irrigation ditch. BRIGHT WINGS's 11-month-old son suffered an epidural hematoma in his head (blood leaking into a layer of the tissue covering the brain) as a result of the wreck. The child was taken to St. Vincent's Hospital in Billings where he was treated.
BRIGHT WINGS's blood was drawn shortly after the crash and analyzed. The lab report indicated that his BAC approximately 1 hour after the crash was 0.318. Using back-extrapolation calculations to estimate the BAC at the time of the crash, the FBI lab report estimated that BRIGHT WINGS's BAC at the time of the crash would have been approximately 0.34 (with a possible range of 0.33 to 0.35).
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that BRIGHT WINGS will likely serve all of the time imposed by the court. In the federal system, BRIGHT WINGS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Johnson County Man Sentenced for Producing Child PornRead the Press Release
KANSAS CITY, KAN. – A man from Johnson County, Kan., has been sentenced to 30 years in federal prison for producing child pornography, including images of a naked two-year-old boy in a roaster pan in an oven, U.S. Attorney Barry Grissom said today.
The case was part of Operation Hotlina, a major investigation into child exploitation by ICE’s Homeland Security Investigations.Gary Hartwig, special agent in charge of HSI Chicago, which oversees Kansas, said: “To rescue these innocent victims, HSI will relentlessly pursue child predators. Since we began Operation Hotlina a worldwide network of offenders has been, and continues to be, unraveled, including this defendant. Thanks to the determination of HSI special agents, and our law enforcement partners, we have been able to rescue 163 children and arrest 51 perpetrators worldwide.”
Michael D. Arnett, 38, Roeland Park, Kan., pleaded guilty to one count of producing child pornography. In his plea, Arnett admitted that investigators found child pornography on his computer when they served a search warrant May 15, 2012, at his home in Roeland Park.
The case began when Homeland Security seized child pornography including images of victims who appeared to be from the area of Overland Park, Kan. Investigators focused on a water bottle in one of the photos bearing the words “Midwest Aquatics” and a phone number beginning with the 913 area code. Midwest Aquatics is a swim and scuba center located at 7565 W. 160th Street in Overland Park.
With the assistance of teachers at an elementary school in Shawnee Mission, investigators ultimately identified three boys who been photographed at Arnett’s home at 5451 Juniper Drive in Roeland Park. At the time the photos were taken, the boys were 11, 8 and 2 years old.
Grissom commended ICE’s Homeland Security Investigations, the Johnson County Sheriff’s Department and Assistant U.S. Attorney Kim Martin for their work on the case.
Jefferson County Man Sentenced for Federal Firearms ViolationRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas - A 40-year-old Port Arthur, Texas, man has been sentenced to federal prison for federal firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Gary Lynn Carrington, Sr., pleaded guilty on Dec. 12, 2012, to being a felon in possession of a firearm and was sentenced to 57 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, on Aug. 23, 2012, a search warrant was executed at 400 Duane Street in Port Arthur after Carrington sold crack cocaine to another individual at that residence. During the search, officers discovered a loaded revolver, a loaded shotgun, $8,628 in cash, drug paraphernalia, and a measuring cup containing cocaine. Carrington and two others were present during the search. Further investigation revealed Carrington was a convicted felon, having previously been found guilty of delivery of a controlled substance in 2007 in Jefferson County and possession of a controlled substance in 1995 in Jefferson County. As a convicted felon, Carrington is prohibited by federal law from owning or possessing firearms or ammunition. Carrington was indicted by a federal grand jury on Sep. 20, 2012.
This case was prosecuted as part of Project Safe Neighborhoods' Operation Time Machine program. Operation Time Machine is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in Port Arthur, Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the ATF and the Jefferson County Narcotics Task Force and prosecuted by Assistant U.S. Attorney Baylor Wortham.Insurance Broker Sentenced to Prison for Defrauding Seniors Out of Annuity FundsRead the Press Release
Williamsburg’s William Lowder Sentenced to 60 Months in Prison for Wire Fraud and Tax Charges
GRAND RAPIDS, MICHIGAN – William Edward Lowder, age 58, of Williamsburg, Michigan, was sentenced today to serve 60 months in prison for defrauding several clients, many who were elderly, out of significant investment funds as part of a wire fraud scheme that he committed while he operated Lowder Insurance. U.S. Attorney Miles was joined in the announcement by Special Agent in Charge Erick Martinez, IRS Criminal Investigation, Special Agent in Charge Robert D. Foley III of the FBI, and Sheriff Thomas Bensley of the Grand Traverse Sheriff’s Office. U.S. District Judge Robert Holmes Bell sentenced Lowder and included a 36-month concurrent sentence on a separate charge of filing a false tax return in 2008. In handing down the sentence, the court emphasized the significant duration of Lowder’s fraud and his repeated failure to re-pay any of his victims. As part of his sentence, Lowder was ordered to pay restitution of $1,567,908.00, and to complete 300 hours of community service after serving his sentence of imprisonment.
Lowder was a licensed insurance agent and annuities producer. Beginning in 2001, Lowder began defrauding several of his elderly clients by convincing them to liquidate existing annuity investments under the promise that the proceeds would be reinvested in annuities earning higher rates of return. After the clients liquidated their annuities, Lowder convinced them to provide the proceeds directly to him for reinvestment. Instead of reinvesting the proceeds, Lowder deposited the proceeds into his own bank account. To conceal his fraud, Lowder provided these clients with false statements of account.“Vigorous prosecution of professionals who commit financial crimes remains one of the top priorities of this Office,” said U.S. Attorney Miles. “This case is especially troubling given that Mr. Lowder stole significant amounts of money from elderly clients who, like most citizens, rely upon their limited investments to provide for their financial security.” FBI Special Agent in Charge Foley agreed, stating “those who target elderly victims, many of whom live on a fixed income, rob them of their hard-earned savings and their security. The FBI is committed to stopping predatory scams against seniors.”
Between 2001 and 2009, Lowder stole in excess of one million dollars from his clients, which he used to fund his own comfortable lifestyle. Lowder admitted that he did not claim the amounts stolen from his clients as income on his U.S. individual income tax returns from 2006 to 2009, despite knowing that he had an obligation to do so.
“The victims of Lowder’s scheme worked hard for their retirement and he stole their hard earned savings,” said Erick Martinez. “IRS Criminal Investigation is committed to pursuing those who perpetrate these crimes.”The investigation and prosecution of this case was conducted by the Grand Traverse County Sheriff’s Office, the IRS and the FBI, who were assisted by the Michigan Office of Financial and Insurance Regulation. The case was prosecuted by Assistant U.S. Attorney Ron Stella.
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Information Filed Charging Mobile County Woman with Mortgage FraudRead the Press Release
The United States Attorney, Kenyen Brown, announces that a one-count information was returned today by a Federal Grand Jury against Delaine Williams, a 25 year old resident of Satsuma, Alabama. Williams was charged with one (1) count of providing false information to a federally insured institution in connection with mortgage loan application.
The United States Department of Housing and Urban Development, Office of Inspector General located in Atlanta, Georgia investigated the case and presented it to the U.S. Attorney’s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Indictments Unsealed in Illegal Oxycodone Prescription ConspiracyRead the Press Release
United States Attorney Deborah R. Gilg announced that arrests were made and indictments unsealed for the following individuals:
Derek Durae, Melissa Glass, and Eddie Glass, all of Omaha, were each charged in a one count indictment with conspiracy to distribute and possess with intent to distribute Oxycodone and Morphine. The maximum penalty is 20 years imprisonment, a fine of $1,000,000, and 3 years of supervised release.
Daniel Bribiesca of Omaha was charged in a two count indictment with distributing fentanyl which carries a maximum penalty of 20 years imprisonment, a fine of $1,000,000, and 3 years of supervised release.
James Buchholz and Ian Lybarger, both of Omaha, were each charged in a one count indictment with conspiracy to distribute and possess with intent to distribute Oxycodone and hydromorphone. The maximum penalty is 20 years imprisonment, a fine of $1,000,000, and 3 years of supervised release.
Jonathan Perez and Jessica Bruce, both of Omaha, were each charged in a one count indictment with conspiracy to distribute and possess with intent to distribute Oxycodone . The maximum penalty is 20 years imprisonment, a fine of $1,000,000, and 3 years of supervised release.
Leonardo Brito-Perez, of Omaha, and Chris Humphrey of LaVista, were each charged in a one count indictment with conspiracy to distribute and possess with intent to distribute Methadone. The maximum penalty is 20 years imprisonment, a fine of $1,000,000, and 3 years of supervised release.
This investigation was part of the Drug Enforcement Administration’s drug diversion task force targeting illegal oxycodone and other prescriptions. Also assisting in the arrests was the United States Marshals Service.
Immigration Charges Filed in Unrelated CasesRead the Press Release
Immigration charges were filed against two people in unrelated cases, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Ziyaya Mtola, 39, was indicted on one cout of failure to depart the United States. The indictment alleges that Mtola is an alien and a citizen of the Republic of South Africa who physically resisted efforts to remove him from the United States pursuant to an order of removal on April 22, 2013.
In an unrelated case, Eleazar Ivan Carrillo-Vasquez aka Eduardo Ramirez-Lopez, 28, was charged with illegally reentering the United States following his deportation. The indictment alleges that Carillo-Vasquez is an alien who was previously removed or deported from the United States to Mexico on October 28, 2008, and April 22, 2009.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The cases are being prosecuted by Assistant U.S. Attorney Phillip J. Tripi, following investigations by agents of the Enforcement and Removal Operations of the Immigration and Customs Enforcement Agency.
Gerald Adelore Paquin Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 29, 2013, before U.S. District Judge Sam E. Haddon, GERALD ADELORE PAQUIN, a 55-year-old resident of Billings, was sentenced to a term of:
Prison: 12 months
Special Assessment: $100
Restitution: $141,231.15
Supervised Release: 3 years
PAQUIN was sentenced in connection with his guilty plea to tax fraud and making false statements.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
PAQUIN was a feed salesman operating in the Billings area. From 2005 to 2007, PAQUIN was employed as a salesman for Cenex Harvest States (CHS). As a salesman for CHS, PAQUIN sold feed and supplements to local ranchers and distributors. Farmers Union Association of Hardin (FUA) had an agreement with CHS where in PAQUIN was "leased" to FUA by CHS as a salesman for one day a week. During the one day a week PAQUIN would sell product to local ranchers on behalf of FUA. In exchange for PAQUIN's time, FUA paid a fee directly to CHS.
One of the products PAQUIN sold for CHS was wheat midds, a base component of feed to which supplements are added. Eventually, CHS stopped selling wheat midds because of the volatility of the market. PAQUIN found another midd supplier, Laughlin Cartrell (LC). PAQUIN began selling the wheat midds he obtained from LC to FUA customers during his one day a week of sales. The change in the supplier of the wheat midds gave PAQUIN the opportunity he needed to essentially begin to operate a personal business selling wheat midds to FUA customers, using FUA's credit to obtain the wheat midds, keeping the money he made from the sales and not paying down FUA's credit line which he used to buy the wheat midds from LC.
During sales calls PAQUIN would sell the LC wheat midds to his customers and instruct the customers to pay him directly rather than make their payments to FUA. PAQUIN's sales of wheat midds to customers were recorded on the FUA books which were maintained by a manager of FUA. Following each sale the manager would credit a receivable account in PAQUIN's name instead of the account of the rancher actually making the purchase. PAQUIN usually did not use the customer's funds, which were paid to him, to pay the liability he incurred on behalf of FUA from LC. Many of the checks from customers were deposited into PAQUIN's personal bank account. PAQUIN continued to let his FUA balance increase until the outstanding balance was so high the Board of Directors of FUA began to ask questions. The Board of Director's questions led to a meeting with PAQUIN. During the meeting PAQUIN is reported as saying, "I could pay you back, go to jail, or kill myself." When questions began to arise about PAQUIN's dealings he paid back some of the stolen money to FUA.
PAQUIN did not report any of the income earned through his sales scheme on his taxes for 2005, 2006, and 2007. PAQUIN's tax returns for 2005, 2006, and 2007 were prepared by an accountant. The accountant confirmed that he relied upon the income information supplied by PAQUIN when completing his tax returns. In 2005 and 2006 PAQUIN claimed he had no other sources of income. In 2007, PAQUIN only claimed the amount noted paid by LC, not the ill gotten funds.
PAQUIN owes the Internal Revenue Service $66,304.00 in restitution plus accrued interest and penalties.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that PAQUIN will likely serve all of the time imposed by the court. In the federal system, PAQUIN does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Criminal Investigation Division of the Internal Revenue Service.
French Oil and Gas Company, Total, S.A., <br /> Charged in the United States and France in Connection with an International Bribery SchemeRead the Press Release
Total, S.A., a French oil and gas company that trades on the New York Stock Exchange, has agreed to pay a $245.2 million monetary penalty to resolve charges related to violations of the Foreign Corrupt Practices Act (FCPA) in connection with illegal payments made through third parties to a government official in Iran to obtain valuable oil and gas concessions, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, and U.S. Attorney Neil H. MacBride for the Eastern of Virginia.
As part of the agreed resolution, the department today filed a criminal information in U.S. District Court for the Eastern District of Virginia charging Total with one count of conspiracy to violate the anti-bribery provisions of the FCPA, one count of violating the internal controls provision of the FCPA, and one count of violating the books and records provision of the FCPA. The department and Total agreed to resolve the charges by entering into a deferred prosecution agreement for a term of three years. In addition to the monetary penalty, Total also agreed to cooperate with the department and foreign law enforcement to retain an independent corporate compliance monitor for a period of three years and to continue to implement an enhanced compliance program and internal controls designed to prevent and detect FCPA violations.
Also today, the U.S. Securities and Exchange Commission (SEC) entered into a cease-and-desist order against Total in which the company agreed to pay an additional $153 million in disgorgement and prejudgment interest. Total also agreed with the SEC to comply with certain undertakings regarding its FCPA compliance program, including the retention of a compliance consultant.
In addition, French enforcement authorities announced earlier today that they had requested that Total, Total’s Chairman and Chief Executive Officer, and two additional individuals be referred to the Criminal Court for violations of French law, including France’s foreign bribery law.
“Today we announce the first coordinated action by French and U.S. law enforcement in a major foreign bribery case,” said Acting Assistant Attorney General Raman. “Our two countries are working more closely today than ever before to combat corporate corruption, and Total, which bought business through bribes, now faces the criminal consequences across two continents.”
“The Eastern District of Virginia, through our strong partnership with the Criminal Division’s Fraud Section, is committed to holding accountable those who violate the Foreign Corrupt Practices Act,” said U.S. Attorney MacBride. “Today’s deferred prosecution agreement, with both its punitive and forward-looking compliance provisions, dovetails with our goals of bringing violators to justice and preventing future misconduct.”
According to the deferred prosecution agreement, in 1995 Total sought to re-enter the Iranian oil and gas market by attempting to obtain a contract with the National Iranian Oil Company (NIOC) to develop the Sirri A and E oil and gas fields. In May 1995, Total entered into negotiations with an Iranian official who served as the chairman of an Iranian state-owned and state-controlled engineering company. Total subsequently entered into a purported consulting agreement pursuant to which Total would corruptly make payments to an intermediary designated by the Iranian official to secure NIOC signing a development agreement with Total for the Sirri A and E project, which NIOC did in July 1995. Over the next two-and-a-half years, Total paid approximately $16 million in bribes under the purported consulting agreement.
In 1997, Total sought to negotiate a contract with NIOC to develop a portion of the South Pars gas field, the world’s largest gas field. At the direction of the Iranian official, Total and a second intermediary entered into another purported consulting agreement that called for Total to make large payments to the intermediary. In September 1997, Total executed a contract with NIOC that granted it a 40 percent interest in developing phases two and three of the South Pars gas field. Over the next seven years, Total made unlawful payments of approximately $44 million pursuant to the second purported consulting agreement.
In sum, between 1995 and 2004, at the direction of the Iranian official, Total corruptly made approximately $60 million in bribe payments under the agreements for the purpose of inducing the Iranian official to use his influence in connection with Total’s efforts to obtain and retain lucrative oil rights in the Sirri A and E and South Pars oil and gas fields. Total mischaracterized the unlawful payments as “business development expenses” when they were, in fact, bribes designed to corruptly influence a foreign official. Further, Total failed to implement effective internal accounting controls, permitting the consulting agreements’ true nature and true participants to be concealed and thereby failing to maintain accountability for assets.
The case is being prosecuted by Trial Attorney Andrew Gentin of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Charles Connolly of the U.S. Attorney’s Office for the Eastern District of Virginia. Significant assistance was provided by the Criminal Division’s Office of International Affairs and by the SEC’s New York Regional Office. The department also acknowledges and expresses its deep appreciation for the cooperation and partnership of French law enforcement authorities.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
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DPAFrench Oil and Gas Company, Total, S.A., Charged in the United States and France in Connection with an International Bribery SchemeRead the Press Release
ALEXANDRIA, Va. – Total, S.A., a French oil and gas company that trades on the New York Stock Exchange, has agreed to pay a $245.2 million monetary penalty to resolve charges related to violations of the Foreign Corrupt Practices Act (FCPA) in connection with illegal payments made through third parties to a government official in Iran to obtain valuable oil and gas concessions, announced U.S. Attorney Neil H. MacBride for the Eastern of Virginia, and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
As part of the agreed resolution, the department today filed a criminal information in U.S. District Court for the Eastern District of Virginia charging Total with one count of conspiracy to violate the anti-bribery provisions of the FCPA, one count of violating the internal controls provision of the FCPA, and one count of violating the books and records provision of the FCPA. The department and Total agreed to resolve the charges by entering into a deferred prosecution agreement for a term of three years.
Also today, the U.S. Securities and Exchange Commission (SEC) entered into a cease-and-desist order against Total in which the company agreed to pay an additional $153 million in disgorgement and prejudgment interest. Total also agreed with the SEC to comply with certain undertakings regarding its FCPA compliance program, including the retention of a compliance consultant.
In addition, French enforcement authorities announced earlier today that they had requested that Total, Total’s Chairman and Chief Executive Officer, and two additional individuals be referred to the Criminal Court for violations of French law, including France’s foreign bribery law.
“The Eastern District of Virginia, through our strong partnership with the Criminal Division’s Fraud Section, is committed to holding accountable those who violate the Foreign Corrupt Practices Act,” said U.S. Attorney MacBride. “Today’s deferred prosecution agreement, with both its punitive and forward-looking compliance provisions, dovetails with our goals of bringing violators to justice and preventing future misconduct.”
“Today we announce the first coordinated action by French and U.S. law enforcement in a major foreign bribery case,” said Acting Assistant Attorney General Raman. “Our two countries are working more closely today than ever before to combat corporate corruption, and Total, which bought business through bribes, now faces the criminal consequences across two continents.”
According to the deferred prosecution agreement, in 1995 Total sought to re-enter the Iranian oil and gas market by attempting to obtain a contract with the National Iranian Oil Company (NIOC) to develop the Sirri A and E oil and gas fields. In May 1995, Total entered into negotiations with an Iranian official who served as the Chairman of an Iranian state-owned and state-controlled engineering company. Total subsequently entered into a purported consulting agreement pursuant to which Total would corruptly make payments to an intermediary designated by the Iranian official to secure NIOC signing a development agreement with Total for the Sirri A and E project, which NIOC did in July 1995. Over the next two-and-a-half years, Total paid approximately $16 million in bribes under the purported consulting agreement.
In 1997, Total sought to negotiate a contract with NIOC to develop a portion of the South Pars gas field, the world’s largest gas field. At the direction of the Iranian official, Total and a second intermediary entered into another purported consulting agreement that called for Total to make large payments to the intermediary. In September 1997, Total executed a contract with NIOC that granted it a 40 percent interest in developing phases two and three of the South Pars gas field. Over the next seven years, Total made unlawful payments of approximately $44 million pursuant to the second purported consulting agreement.
In sum, between 1995 and 2004, at the direction of the Iranian official, Total corruptly made approximately $60 million in bribe payments under the agreements for the purpose of inducing the Iranian official to use his influence in connection with Total’s efforts to obtain and retain lucrative oil rights in the Sirri A and E and South Pars oil and gas fields. Total mischaracterized the unlawful payments as “business development expenses” when they were, in fact, bribes designed to corruptly influence a foreign official. Further, Total failed to implement effective internal accounting controls, permitting the consulting agreements’ true nature and true participants to be concealed and thereby failing to maintain accountability for assets.
In addition to the monetary penalty, Total also agreed to cooperate with the department and foreign law enforcement, to retain an independent corporate compliance monitor for a period of three years, and to continue to implement an enhanced compliance program and internal controls designed to prevent and detect FCPA violations.
The case is being prosecuted by Trial Attorney Andrew Gentin of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Charles Connolly of the U.S. Attorney’s Office for the Eastern District of Virginia. Significant assistance was provided by the Criminal Division’s Office of International Affairs and by the SEC’s New York Regional Office. The department also acknowledges and expresses its deep appreciation for the cooperation and partnership of French law enforcement authorities.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Frederick and Carey Gonzales Plead Guilty to Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Frederick Gonzales, 42, and his wife Carey Gonzales, 36, both of Albuquerque, N.M., pleaded guilty this morning to federal child pornography charges announced U.S. Attorney Kenneth J. Gonzales, New Mexico Attorney General Gary K. King, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and Bernalillo County Sheriff Dan Houston.
Frederick and Carey Gonzales were arrested on state child pornography charges on Jan. 11, 2013. At that time, Frederick Gonzales was the incoming president of Albuquerque’s Young America Football League (YAFL), and Carey Gonzales was employed as a kindergarten teacher’s aide by the Albuquerque Public Schools (APS). Shortly thereafter, the YAFL removed Frederick Gonzales from his position with the organization and APS fired Carey Gonzales. The couple subsequently was arrested on criminal complaints alleging federal child pornography charges on Jan. 18, 2013, by members of the New Mexico Internet Crimes Against Children (ICAC) Task Force.
Frederick and Carey Gonzales were indicted on Feb. 6, 2013. The six-count indictment charged Frederick Gonzales with three counts of receipt of visual depictions of minors engaged in sexually explicit conduct and two counts of possession of visual depictions of minors engaged in sexually explicit conduct. According to the indictment, Frederick Gonzales committed these offenses in Bernalillo County between July 2012 and Jan. 2013. The indictment charged Carey Gonzales with one count of possession of visual depictions of minors engaged in sexually explicit conduct and alleged that she committed the offense in Bernalillo County in Jan. 2013.
Court filings reflect that the charges against Frederick and Carey Gonzales were the result of an undercover investigation that was initiated by the New Mexico Attorney General’s Office in Sept. 2012, and identified an IP Address subscribed to Frederick Gonzales as one that was used to possess, receive and distribute child pornography. As a result of the investigation, on Jan. 11, 2013, the Bernalillo County Sheriff’s Office executed a search warrant at the Gonzales residence and seized computers and computer-related media that contained videos and images consistent with child pornography.
This morning, Frederick Gonzales entered a guilty plea to Count 1 of the indictment charging him with receipt of child pornography. Under the terms of his plea agreement, he will be sentenced to 97 months in federal prison followed by a term of supervised release to be determined by the Court. Gonzales also will be required register as a sex offender. In entering his guilty plea, Frederick Gonzales admitted that, on Jan. 11, 2013, he voluntarily participated in a recorded interview during which he admitted watching child pornography videos. He also admitted that he had been downloading child pornography videos using a file-sharing program for approximately six months.
Carey Gonzales entered a guilty plea to Count 6 of the indictment charging her with possession of child pornography. Under the terms of her plea agreement, Carey Gonzales will be sentenced to 36 months in federal prison followed by 20 years of supervised release. She also will be required to register as a sex offender. During her plea hearing, Carey Gonzales admitted that she too participated in a voluntary recorded interview while the search warrant was being executed at her residence on Jan. 11, 2013. During that interview, Carey Gonzales admitted watching child pornography videos that her husband downloaded and saved.
Frederick Gonzales has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Carey Gonzales was remanded into federal custody after entering her guilty plea. She too will remain in custody pending her sentencing hearing, which has yet to be scheduled.
The case is being prosecuted by Assistant U.S. Attorney Charlyn E. Rees, and was investigated by the following members of the New Mexico ICAC Task Force: the New Mexico Attorney General’s Office, the Bernalillo County Sheriff’s Office, the Albuquerque office of the FBI and the New Mexico Regional Computer Forensic Lab.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.Fort Totten Man Sentenced for Involuntary ManslaughterRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on May 29, 2013, Louis John Dunn of Fort Totten, N.D., was sentenced before U.S. District Judge Ralph R. Erickson on a charge of involuntary manslaughter. Dunn pleaded guilty to the charge on March 6, 2013.
Judge Erickson sentenced Dunn to three years’ and five months’ imprisonment to be followed by three years of supervised release. Dunn was ordered to pay a $100 special assessment to the Crime Victim's Fund. Restitution will be determined at a later date.
On Oct. 12, 2012, Dunn, 36, while driving under the influence of alcohol, drove into the lane of on-coming traffic, striking the vehicle driven by Andrew Greywater who subsequently died from the injuries he received in the crash. The incident occurred 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.
Former Real Estate Agent Sentenced for Multimillion-dollar Mortgage Fraud SchemeRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 52-year-old White Bear Lake man was sentenced for his role in a mortgage fraud scheme that defrauded mortgage lenders out of at least $7 million. United States District Court Judge Susan Richard Nelson sentenced Robert Leo Rick to three years in prison on one count of conspiracy to commit mail and wire fraud. Rick was charged on December 23, 2011, and pleaded guilty on January 27, 2012.
In his plea agreement, Rick admitted that from 2005 through 2007, while employed as a real estate agent for Rick’s Realty, he worked with developers, builders, and investors seeking to “invest” in residential real estate. Rick admitted soliciting and conspiring with others to secure investors to purchase multiple residential properties, in transactions where those investors, or buyers, would receive undisclosed kickbacks from mortgage loan proceeds.
To generate the funds for the kickbacks, builders sold the homes at reduced prices, appraisers appraised the homes at inflated prices, and the mortgage loan lenders were informed only of the inflated prices, and thus awarded buyers mortgage loans based on the inflated prices rather than the true, reduced sales prices. The excess mortgage loan proceeds were then used to provide the buyers with the promised kickbacks, which were not disclosed to the mortgage loan lenders. All of this was known to Rick.
Through this scheme, Rick assisted builders and developers, including TJ Waconia, to sell approximately 102 residential properties with mortgage loans totaling approximately $26 million. He also served as property purchaser, directly or through the use of his then-wife’s name, for at least eight properties, and received a total of approximately $397,000 in purchaser kickbacks. To further his scheme, Rick admitted using the U.S. mail and commercial carriers, as well as interstate wire communication, to pass along information to investors.
This case was the result of an investigation by the U.S. Postal Inspection Service and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Tracy L. Perzel.
The U.S. Attorney’s Office wants to remind people to protect themselves from mortgage fraud. For more information, visit http://www.stopfraud.gov/protect-mortgage.html.Former Puerto Rico Police Officers Convicted of Extorting A Defendant for $50,000Read the Press Release
SAN JUAN, PR – Two former police officers with the Police of Puerto Rico were convicted of attempting to extort a commonwealth defendant and soliciting bribe payments of $50,000, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico.
Abimael Arroyo-Cruz, 30, of Río Grande, Puerto Rico, was convicted by a jury on charges including conspiracy to commit federal programs bribery, bribery, conspiracy to commit extortion and attempted extortion. Josué Becerril-Ramos, 36, of Carolina, Puerto Rico, pleaded guilty to the same counts during trial.
According to court records and evidence presented at trial, Arroyo and Becerril arrested eight individuals for possession of unregistered firearms and marijuana on Aug. 2, 2012. The officers then solicited from one individual a bribe payment of $50,000 to have his case dismissed. Beginning on Sept. 11, 2012, both officers spoke with the individual multiple times over the telephone, discussing payment details and strategies for dismissing the individual’s case. Arroyo and Becerril collected approximately $35,000 of the $50,000 in two different payment installments.
In exchange for the bribes, Arroyo and Becerril devised a plan whereby the officers would misidentify a co-defendant in court, leading to dismissal of that defendant’s case. When asked under oath at the preliminary hearing to identify the defendant, Arroyo instead identified a co-defendant.
Unbeknownst to the officers, the individuals who dropped off the payments were cooperating with federal law enforcement.
The case was investigated by the FBI’s San Juan Field Office. The case was prosecuted by Assistant U.S. Attorney Timothy Henwood of the District of Puerto Rico and Trial Attorneys Menaka Kalaskar and Marquest J. Meeks of the Criminal Division’s Public Integrity Section.
Former Puerto Rico Police Officers Convicted <br /> of Extorting a Defendant for $50,000Read the Press Release
Two former police officers with the Police of Puerto Rico were convicted of attempting to extort a commonwealth defendant and soliciting bribe payments of $50,000, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico.
Abimael Arroyo-Cruz, 30, of Rio Grande, Puerto Rico, was convicted by a jury on charges including conspiracy to commit federal programs bribery, bribery, conspiracy to commit extortion and attempted extortion. Josue Becerril-Ramos, 36, of Carolina, Puerto Rico, pleaded guilty to the same counts during trial.
According to court records and evidence presented at trial, Arroyo and Becerril arrested eight individuals for possession of unregistered firearms and marijuana on Aug. 2, 2012. The officers then solicited from one individual a bribe payment of $50,000 to have his case dismissed. Beginning on Sept. 11, 2012, both officers spoke with the individual multiple times over the telephone, discussing payment details and strategies for dismissing the individual’s case. Arroyo and Becerril collected approximately $35,000 of the $50,000 in two different payment installments.
In exchange for the bribes, Arroyo and Becerril devised a plan whereby the officers would misidentify a co-defendant in court, leading to dismissal of that defendant’s case. When asked under oath at the preliminary hearing to identify the defendant, Arroyo instead identified a co-defendant.
Unbeknownst to the officers, the individuals who dropped off the payments were cooperating with federal law enforcement.
The case was investigated by the FBI’s San Juan Field Office. The case was prosecuted by Trial Attorneys Menaka Kalaskar and Marquest J. Meeks of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Timothy Henwood of the District of Puerto Rico.
Former Prison Staffer Found Guilty of Sexually Abusing Two InmatesRead the Press Release
PHOENIX– Jose Arnulfo Martinez, aka “Joe” Martinez, 49, of Phoenix, was found guilty by a federal jury on Tuesday of six counts of sexual abuse of a ward. The case was tried before U.S. District Judge Neil V. Wake from May 21, 2013 until May 28, 2013. Sentencing is set before Judge Wake on Aug. 26, 2013.
U.S. Attorney John S. Leonardo said, “Federal prison inmates have a right to serve their court ordered sentences without having to endure sexual abuse by anyone, and especially not at the hands of those who are entrusted with their care. The Justice Department will hold accountable all prison staff who abuse their power and the public trust. We thank our partners at the FBI and the Bureau of Prisons who join with us in this effort.”
During all relevant times, Martinez worked for the Bureau of Prisons at the Federal Correctional Institution-Phoenix, where he supervised federal inmates. The evidence at trial showed that in 2008, Martinez sexually abused an inmate on three different occasions. The evidence further showed that in 2010, Martinez sexually abused another inmate on three occasions.
Each conviction for sexual abuse of a ward carries a maximum penalty of 15years, a $250,000 fine or both.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Investigations Department of the Federal Correctional Institution-Phoenix. The prosecution was handled by Alison S. Bachus, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-1222-PHX-NVW
RELEASE NUMBER: 2013-042_MartinezFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Former Nevada Lobbyist Harvey Whittemore Convicted of Making Unlawful Senate Campaign ContributionsRead the Press Release
Following a two-week jury trial, F. Harvey Whittemore, a prominent lawyer and former lobbyist in Nevada, was convicted today of making unlawful campaign contributions to a Senate campaign committee in 2007 and causing a false statement to be made to the Federal Election Commission (FEC), announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Daniel G. Bogden, U.S. Attorney for the District of Nevada.
“Today, a jury convicted Mr. Whittemore of using dozens of straw donors to evade contribution limits so he could make good on a campaign fundraising promise,” said Acting Assistant Attorney General Raman. “The cornerstones of our campaign finance laws are contribution limits and transparency, and Mr. Whittemore’s crime was designed to undermine both. Today’s verdict demonstrates our resolve to aggressively pursue those who use illegal tricks to corrupt our democratic process.”
“Persons who knowingly violate campaign contribution laws will be investigated and prosecuted to the full extent of the law,” said U.S. Attorney Bogden. “Campaign laws exist to level the playing field. The public deserves to know that these laws are not just ‘on the books,’ and that persons with power and money who abuse the system for their own benefit will be prosecuted.”
Whittemore, 59, of Reno, Nev., was convicted of one count of making excessive campaign contributions, one count of making contributions in the name of others, and one count of causing a materially false statement to be made to the FEC, all felony offenses.
According to the indictment and evidence presented at trial, during 2007, Whittemore was the chief executive of Wingfield Nevada Group and was a registered lobbyist in Nevada.On Feb. 21, 2007, Whittemore met with a U.S. senator at a hotel in Las Vegas and agreed to raise $150,000 in contributions for the senator’s campaign committee by March 31, 2007, which marked the end of an FEC-mandated quarterly reporting period.
Federal laws prohibit persons from hiding their true identity when contributing to federal political campaigns, and also set limits on the amount that an individual can contribute to a campaign. In 2007, the maximum individual contribution was $2,300 for a primary election and $2,300 for a general election; thus, the maximum for one candidate was $4,600.
Aware of the strict limits on individual federal campaign contributions, Whittemore devised a scheme to unlawfully use about 29 family members, employees and their spouses as conduits to funnel more than $130,000 of his own money to the campaign. This scheme allowed Whittemore to make an individual campaign donation to the campaign committee in excess of the limits established by federal law. Whittemore concealed the scheme from the FEC, the senator, and the senator’s campaign committee.
In March 2007, Whittemore solicited family members, his employees and their spouses to make the maximum campaign donations to the senator’s campaign and Whittemore reimbursed or advanced the money to the contributors with personal checks and wire transfers. Whittemore also paid the contributors additional money on top of the reimbursements. If a conduit contributed $4,600, Whittemore reimbursed them $5,000; likewise if a couple contributed $9,200, he paid the couple $10,000.
On or about March 28, 2007, Whittemore caused one of his employees to transmit $138,000 in contributions to the senator’s campaign committee, the vast majority of which were conduit contributions that Whittemore had personally funded in order to satisfy his pledge to the senator. On April 15, 2007, the senator’s campaign then unknowingly filed a false report with the FEC stating that the conduits had made the contributions, when in fact, Whittemore had made them.
Whittemore is free on a personal recognizance bond pending sentencing, which is scheduled for Sept. 23, 2013. Whittemore faces up to five years in prison and a $250,000 fine on each count.
The case was investigated by the FBI, and is being prosecuted by Trial Attorney Eric G. Olshan of the Public Integrity Section in the Justice Department’s Criminal Division and First Assistant U.S. Attorney Steven W. Myhre of the District of Nevada.
Former Nevada Lobbyist Harvey Whittemore Convicted of Making Unlawful Senate Campaign ContributionsRead the Press Release
WASHINGTON – Following a two-week jury trial, F. Harvey Whittemore, a prominent lawyer and former lobbyist in Nevada, was convicted today of making unlawful campaign contributions to a Senate campaign committee in 2007 and causing a false statement to be made to the Federal Election Commission (FEC), announced Daniel G. Bogden, U.S. Attorney for the District of Nevada and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
“Persons who knowingly violate campaign contribution laws will be investigated and prosecuted to the full extent of the law,” said U.S. Attorney Bogden. “Campaign laws exist to level the playing field. The public deserves to know that these laws are not just ‘on the books,’ and that persons with power and money who abuse the system for their own benefit will be prosecuted.”
“Today, a jury convicted Mr. Whittemore of using dozens of straw donors to evade contribution limits so he could make good on a campaign fundraising promise,” said Acting Assistant Attorney General Raman. “The cornerstones of our campaign finance laws are contribution limits and transparency, and Mr. Whittemore’s crime was designed to undermine both. Today’s verdict demonstrates our resolve to aggressively pursue those who use illegal tricks to corrupt our democratic process.”
Whittemore, 59, of Reno, was convicted of one count of making excessive campaign contributions, one count of making contributions in the name of others, and one count of causing a materially false statement to be made to the FEC, all felony offenses.
According to the indictment and evidence presented at trial, during 2007, Whittemore was the chief executive of Wingfield Nevada Group and was a registered lobbyist in Nevada.On Feb. 21, 2007, Whittemore met with a U.S. Senator at a hotel in Las Vegas and agreed to raise $150,000 in contributions for the Senator’s campaign committee by March 31, 2007, which marked the end of an FEC-mandated quarterly reporting period.
Federal laws prohibit persons from hiding their true identity when contributing to federal political campaigns, and also set limits on the amount that an individual can contribute to a campaign. In 2007, the maximum individual contribution was $2,300 for a primary election and $2,300 for a general election; thus, the maximum for one candidate was $4,600.
Aware of the strict limits on individual federal campaign contributions, Whittemore devised a scheme to unlawfully use about 29 family members, employees and their spouses as conduits to funnel more than $130,000 of his own money to the campaign. This scheme allowed Whittemore to make an individual campaign donation to the campaign committee in excess of the limits established by federal law. Whittemore concealed the scheme from the FEC, the Senator, and the Senator’s campaign committee.
In March 2007, Whittemore solicited family members, his employees and their spouses to make the maximum campaign donations to the Senator’s campaign and Whittemore reimbursed or advanced the money to the contributors with personal checks and wire transfers. Whittemore also paid the contributors additional money on top of the reimbursements. If a conduit contributed $4,600, Whittemore reimbursed them $5,000; likewise if a couple contributed $9,200, he paid the couple $10,000.
On or about March 28, 2007, Whittemore caused one of his employees to transmit $138,000 in contributions to the Senator’s campaign committee, the vast majority of which were conduit contributions that Whittemore had personally funded in order to satisfy his pledge to the Senator. On April 15, 2007, the Senator’s campaign then unknowingly filed a false report with the FEC stating that the conduits had made the contributions, when in fact, Whittemore had made them.
Whittemore is free on a personal recognizance bond pending sentencing, which is scheduled for Sept. 23, 2013, at 11:00 a.m. Whittemore faces up to five years in prison and a $250,000 fine on each count.
The case was investigated by the FBI, and is being prosecuted by First Assistant U.S. Attorney Steven W. Myhre of the District of Nevada and Trial Attorney Eric G. Olshan of the Public Integrity Section in the Justice Department’s Criminal Division.Former Navy Reservist Pleads Guilty to Sexual Exploitation <br /> of Multiple Minors to Produce Child PornographyRead the Press Release
Anthony K. Mastrogiovanni, 30, of Crofton, Md., pleaded guilty today to the sexual exploitation of minors to produce child pornography.
The guilty plea was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the District of Maryland Rod J. Rosenstein; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service’s Washington Division.
According to filed court documents and proceedings, between 2006 and 2012, Mastrogiovanni was a U.S. Navy reservist who sexually exploited more than 30 male juveniles, ranging from 9 to 16 years of age, in Maryland and Louisiana to produce child pornography. During that time period, Mastrogiovanni met and befriended his victims through his involvement in civic organizations or his military affiliation. Mastrogiovanni captured sexually explicit video of the victims on cameras hidden in his residences in Louisiana and Maryland.
Mastrogiovanni has been in federal custody since he was arrested by inspectors of the U.S. Postal Inspection Service in Las Vegas on July 19, 2012. A search of his Las Vegas hotel room recovered external hard drives containing over 30,000 images of child pornography, including video of his juvenile victims. That same day, federal agents searched Mastrogiovanni’s apartment in Crofton where they discovered a hidden video camera and video transmitting equipment as well as digital media containing additional child pornography.
As part of his plea agreement, Mastrogiovanni will be required to register as a sex offender in the place where he resides, where he is an employee and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Mastrogiovanni faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison followed by up to lifetime of supervised release for sexual exploitation of a minor to produce child pornography. U.S. District Judge J. Frederick Motz has scheduled sentencing for July 31, 2013.
The investigation was conducted by the U.S. Postal Inspection Service, with the assistance of the Air Force Office of Special Investigations, Naval Criminal Investigative Service and FBI’s Maryland Child Exploitation Task Force. The case is being prosecuted by Trial Attorney Keith A. Becker of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney P. Michael Cunningham of the District of Maryland.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Navy Reservist Pleads Guilty to the Sexual Exploitation of Minors to Produce Child PornographyRead the Press Release
Baltimore, Maryland - Anthony K. Mastrogiovanni, 30, of Crofton, MD, pleaded guilty today to the sexual exploitation of minors to produce child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
According to filed court documents and proceedings, between 2006 and 2012, Mastrogiovanni was a U.S. Navy reservist who sexually exploited more than 30 male juveniles, ranging from 9 to 16 years of age, in Maryland and Louisiana in order to produce child pornography. During that time period, Mastrogiovanni met and befriended his victims through his involvement in civic organizations or his military affiliation. Mastrogiovanni captured sexually explicit video of the victims on cameras hidden in his residences in Louisiana and Maryland.
Mastrogiovanni has been in federal custody since he was arrested by Inspectors of the United States Postal Inspection Service in Las Vegas, Nevada, on July 19, 2012. A search of his Las Vegas hotel room recovered external hard drives containing over 30,000 images of child pornography, including video of his juvenile victims. That same day, federal agents searched Mastrogiovanni’s apartment in Crofton, MD, where they discovered a hidden video camera and video transmitting equipment as well as digital media containing additional child pornography.
As part of his plea agreement, Mastrogiovanni will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Mastrogiovanni faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison followed by up to lifetime of supervised release for sexual exploitation of a minor to produce child pornography. U.S. District Judge J. Frederick Motz has scheduled sentencing for July 31, 2013 at 9:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Inspection Service for its work in the investigation and thanked the Air Force Office of Special Investigations, Naval Criminal Investigative Service, and FBI's Maryland Child Exploitation Taskforce for their assistance. Mr. Rosenstein thanked Trial Attorney Keith A. Becker of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney P. Michael Cunningham, who are prosecuting the case.
Former NYPD Sergeant Pleads Guilty in Manhattan Federal Court to $4.7 Million Real Estate Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JAMES MONAHAN, the owner of a real estate investment company called Panam Management Group, Inc., and a former sergeant in the New York City Police Department (“NYPD”), pled guilty today in Manhattan federal court to wire fraud, mail fraud, and conspiracy to commit wire and mail fraud in connection with his participation in a fraudulent real estate scheme. As part of that scheme, MONAHAN misappropriated approximately $4.7 million he obtained from investors for a real estate development project he claimed to be constructing in the Dominican Republic. The real estate project was never developed and investors lost all of their money. MONAHAN pled guilty before U.S. District Judge John G. Koeltl.
Manhattan U.S. Attorney Preet Bharara said: “Like the real estate development project he promoted, James Monahan was a phony who exploited his past association with the NYPD to woo investors, only to trade that badge of pride for a badge of fraud. There is a price to be paid for defrauding investors, and this Office will continue its work to prosecute and punish bogus professionals.”
According to the Indictment, statements made during today’s guilty plea proceeding, and a Complaint previously unsealed in Manhattan federal court:
Beginning in early 2008, MONAHAN negotiated with another real estate investment company to solicit investors for a project he claimed to be constructing in the Dominican Republic. During the negotiations, MONAHAN repeatedly touted his prior service with the NYPD as proof of his trustworthiness and as a reason to invest in the project.
In connection with the project, MONAHAN and a co-conspirator, Edward Adams, who was a New York-based attorney, executed agreements that required investor funds to be deposited into escrow accounts that were to be managed by Adams. The agreements required that the majority of the funds be deposited in an account to which the defendants would not have access. From October 2008 through February 2009, approximately $4.7 million in investor funds were deposited into the escrow accounts. Shortly after the deposits were made, the funds were improperly withdrawn from the account by Adams without disclosure to investors.
In an effort to hide the fact that the funds had been removed from the escrow account, Monahan mailed a forged letter in May 2009 on the stationery of a major bank to investors claiming that their money was safely deposited with that bank. However, by June 2009, all of the investor funds had been taken from the escrow accounts. At that point, almost no work had been performed on the purported project in the Dominican Republic and no money was returned to investors.
MONAHAN, 43, of New York, New York, pled guilty to one count each of wire fraud, mail fraud, and conspiracy to commit wire and mail fraud, each of which carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense.
MONAHAN is scheduled to be sentenced by Judge Koeltl on October 4, 2013 at 10 a.m. Adams is scheduled to go to trial starting July 8, 2013.
Mr. Bharara praised the work of the Federal Bureau of Investigation.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. 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.
This case is being handled by the Office's Securities and Commodities Fraud Task Force. Assistant U.S. Attorney John T. Zach is in charge of the prosecution.
Monahan, James and Adams, Edward Indictment
Former Gatlinburg Resident Sentenced to Serve 18 Months in Prison for Tax OffensesRead the Press Release
KNOXVILLE, Tenn. – David Lee Miner, 61, formerly of Gatlinburg, was sentenced on May 29, 2013, by the Honorable Thomas Phillips, U.S. District Court Judge, to serve 18 months in federal prison. In addition, Miner was ordered to pay restitution to the IRS for unpaid taxes in the amount of $36,205.10.
Miner was indicted on March 15, 2011, and was convicted at trial on March 28, 2013, on one count of impeding or obstructing the administration of the Internal Revenue Laws and two counts of failing to file federal income tax returns. During a six-day trial, the United States presented evidence of Miner’s efforts to obstruct the lawful functions of the Internal Revenue Service and his failure to file tax returns for the 2004 and 2005 tax years. The jury heard extensive testimony regarding Miner’s sale of services that were designed to assist customers in evading income taxes. In particular, the United States offered evidence of Miner’s service for the purported decoding and correcting clients’ IRS files, which Miner stated would prevent the IRS from being able to assess taxes. In addition, Miner set up “common law trusts,” which were intended to place clients’ income and possessions out of the reach of the IRS. In connection with both services, Miner would prepare frivolous and threatening letters to IRS employees and others in an effort to hamper the collection of taxes.
With respect to the sentencing, United States Attorney William C. Killian stated the following: "This conviction and sentence will deter others who not only avoid paying income taxes, but advise taxpayers how to avoid paying taxes."
This investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney Frank M. Dale, Jr. represented the United States.
Former Employee of Federal Court Contractor Sentenced for Bribery and PerjuryRead the Press Release
Falsified Drug Tests of Federal Defendants in Return for Bribes and
Then Lied to a Grand Jury Investigating the AccusationsGreenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Lauren Jeannette Diggs, age 51, of Rockville, today to 30 months in prison followed by three years of supervised release for a bribery conspiracy and making false statements to the grand jury, in connection with a scheme to accept bribes from individuals charged or convicted of federal crimes to falsify urine tests.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
“Lauren Jeannette Diggs took bribes to falsify drug tests of federal criminal defendants, then committed perjury before the grand jury investigating the allegations,” said U.S. Attorney Rod J. Rosenstein. “Providing false information to courts and grand juries undermines the integrity of the criminal justice system.”
From July 27, 2009 through December 30, 2010, Diggs was the primary alcohol and substance abuse counselor for ADR, a company that provides alcohol and drug treatment services, at ADR’s Forestville facility, where she also supervised urine tests on female clients. U.S. Probation and Pretrial Services in Maryland contracted with ADR to test the urine samples of individuals who were on pretrial release, supervised release, parole or probation for the presence of controlled substances. When ADR clients completed their substance abuse and mental health treatment programs, ADR provided them with discharge summary certificates. U.S. Probation relied on the urine test results and certificates prepared by ADR to supervise individuals charged with or convicted of federal crimes, and to prepare reports to the U.S. District Court or the Parole Commission, who in turn relied on the reports to make release and sentencing decisions.
According to her guilty plea, starting in January 2010, Diggs asked co-conspirator Christopher Womack, who was employed at ADR as a urine technician, and others to ensure that certain ADR clients would not have their urine samples accurately tested and reported to U.S. Probation in exchange for money from ADR clients. Diggs introduced Womack to her bribe-paying clients and explained her bribe pricing schedule to Womack. After she was fired from ADR on December 30, 2010, Diggs continued to assist Womack in providing fictitious certificates to ADR clients in exchange for money, and received proceeds of bribe payments from Womack.
Many of the federal defendants who paid bribes had significant criminal histories and had been in fact ingesting controlled substances while on supervised release. In total, Diggs and Womack accepted more than 100 individual bribe payments.
During 2012, the Grand Jury in Greenbelt was investigating the bribery scheme, including Diggs’ participation. Subpoenas were issued in June 2012 requiring Diggs and Womack to appear and provide sworn testimony before the Grand Jury . On June 11, Womack called Diggs to discuss their anticipated testimony. Diggs attempted to persuade Womack to provide false testimony, saying:
“There ain’t nothing else to tell them m—f—!... They have no f— proof.… You don’t know s—. Deny! Deny! Deny!... If you don’t remember no other f— word you remember that g—d— word. Deny!... Cause that’s what the f— I’m gonna do.”
Diggs appeared before the Grand Jury on July 2, 2012 and made false statements, claiming that she did not know anyone at ADR who had received money in exchange for not requiring ADR clients to take court-mandated urine tests, or in exchange for providing discharge certificates. Diggs also denied that she had spoken to Womack since her discharge from ADR.
Three days later, in a telephone conversation on July 5, Diggs again attempted to persuade Womack to provide false testimony to the Grand Jury. Diggs said:
“Yo, that grand jury is nothing…. It’s nothing. It’s easy. Deny. Deny everything. You haven’t seen me…. Anything that’s asked, deny.”
Christopher Womack, age 44, of Forestville, Maryland, pleaded guilty to bribery and was sentenced to three years probation of which nine months are in home confinement
United States Attorney Rod J. Rosenstein praised the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James A. Crowell IV, who prosecuted the case.
Mr. Rosenstein thanked District of Maryland Chief U.S. Probation Officer William Henry for bringing the allegations to the attention of federal law enforcement.
Former Employee of Federal Court Contractor Sentenced for Bribery and PerjuryRead the Press Release
Falsified Drug Tests of Federal Defendants in Return for Bribes and
Then Lied to a Grand Jury Investigating the AccusationsGreenbelt, Maryland - Chief U.S. District Judge Deborah K. Chasanow sentenced Lauren Jeannette Diggs, age 51, of Rockville, today to 30 months in prison followed by three years of supervised release for a bribery conspiracy and making false statements to the grand jury, in connection with a scheme to accept bribes from individuals charged or convicted of federal crimes to falsify urine tests.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Mark A. Magaw of the Prince George’s County Police Department.
“Lauren Jeannette Diggs took bribes to falsify drug tests of federal criminal defendants, then committed perjury before the grand jury investigating the allegations,” said U.S. Attorney Rod J. Rosenstein. “Providing false information to courts and grand juries undermines the integrity of the criminal justice system.”
From July 27, 2009 through December 30, 2010, Diggs was the primary alcohol and substance abuse counselor for ADR, a company that provides alcohol and drug treatment services, at ADR’s Forestville facility, where she also supervised urine tests on female clients. U.S. Probation and Pretrial Services in Maryland contracted with ADR to test the urine samples of individuals who were on pretrial release, supervised release, parole or probation for the presence of controlled substances. When ADR clients completed their substance abuse and mental health treatment programs, ADR provided them with discharge summary certificates. U.S. Probation relied on the urine test results and certificates prepared by ADR to supervise individuals charged with or convicted of federal crimes, and to prepare reports to the U.S. District Court or the Parole Commission, who in turn relied on the reports to make release and sentencing decisions.
According to her guilty plea, starting in January 2010, Diggs asked co-conspirator Christopher Womack, who was employed at ADR as a urine technician, and others to ensure that certain ADR clients would not have their urine samples accurately tested and reported to U.S. Probation in exchange for money from ADR clients. Diggs introduced Womack to her bribe-paying clients and explained her bribe pricing schedule to Womack. After she was fired from ADR on December 30, 2010, Diggs continued to assist Womack in providing fictitious certificates to ADR clients in exchange for money, and received proceeds of bribe payments from Womack.
Many of the federal defendants who paid bribes had significant criminal histories and had been in fact ingesting controlled substances while on supervised release. In total, Diggs and Womack accepted more than 100 individual bribe payments.
During 2012, the Grand Jury in Greenbelt was investigating the bribery scheme, including Diggs’ participation. Subpoenas were issued in June 2012 requiring Diggs and Womack to appear and provide sworn testimony before the Grand Jury . On June 11, Womack called Diggs to discuss their anticipated testimony. Diggs attempted to persuade Womack to provide false testimony, saying:
“There ain’t nothing else to tell them m—f—!... They have no f— proof.… You don’t know s—. Deny! Deny! Deny!... If you don’t remember no other f— word you remember that g—d— word. Deny!... Cause that’s what the f— I’m gonna do.”
Diggs appeared before the Grand Jury on July 2, 2012 and made false statements, claiming that she did not know anyone at ADR who had received money in exchange for not requiring ADR clients to take court-mandated urine tests, or in exchange for providing discharge certificates. Diggs also denied that she had spoken to Womack since her discharge from ADR.
Three days later, in a telephone conversation on July 5, Diggs again attempted to persuade Womack to provide false testimony to the Grand Jury. Diggs said:
“Yo, that grand jury is nothing…. It’s nothing. It’s easy. Deny. Deny everything. You haven’t seen me…. Anything that’s asked, deny.”
Christopher Womack, age 44, of Forestville, Maryland, pleaded guilty to bribery and was sentenced to three years probation of which nine months are in home confinement
United States Attorney Rod J. Rosenstein praised the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James A. Crowell IV, who prosecuted the case.
Mr. Rosenstein thanked District of Maryland Chief U.S. Probation Officer William Henry for bringing the allegations to the attention of federal law enforcement.
Foreign National Pleads Guilty to Firearm and Immigration ChargesRead the Press Release
Antonio Rea-Fabela, also known as Roman Guadarrama, 36, a citizen of Mexico, who most recently resided in St. Louis, Missouri, pled guilty on May 28, 2013, to Possession of a Firearm by an Illegal Alien (Count 1); and Entry Into the United States Without Inspection (Count 2), the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Rea-Fabela, who is currently scheduled to be sentenced on September 13, 2013, faces a possible penalty of not more than ten years in prison, a fine of up to $250,000, not more than three years of supervised release, and a $100 special assessment on Count 1 and up to six months imprisonment, a $5000 fine and a $10 special assessment on Count 2. Rea-Fabela also agreed to the entry of a Judicial Order of Removal, which will require that he be deported from the United States after the service of any sentence of imprisonment.
Evidence for this indictment was gathered during an investigation conducted by Immigration and Customs Enforcement (ICE) of the Department of Homeland Security, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the St. Clair County Sheriff’s Department. This case has been assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Felon with Six Prior Convictions Pleads Guilty to Unlawfully Possessing A PistolRead the Press Release
PITTSBURGH, Pa. – A convicted felon from Pittsburgh pled guilty to unlawfully possessing a pistol despite his six prior felony convictions, United States Attorney David J. Hickton announced today.
Byron Stevens, 33, pled guilty before United States District Judge Maurice B. Cohill, Jr. Sentencing is scheduled to occur on Sept. 4, 2013, at 11:00 a.m. Prior to May 30, 2012, Stevens had been convicted of at least six felony crimes in several different state cases some of which resulted in state prison sentences. On that date, Stevens possessed a .380 caliber AMT pistol. He discarded the pistol while attempting to run from Pittsburgh police officers during a traffic stop.
The law provides for a maximum total sentence of up to 10 years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pittsburgh Bureau of Police investigated this case. This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Fairview Heights Man Pleads Guilty in Heroin Overdose DeathRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Joseph L. Robinson pled guilty in U.S. District Court in East St. Louis, IL, on May 29, 2013, to selling the heroin which caused the death of Donnie T. Bauman on December 21, 2010.
U.S. Attorney Wigginton noted, “This successful prosecution is yet another step in our anti-heroin initiative. Our anti-heroin effort is designed to slow down and reverse the epidemic of heroin overdose deaths among young people in the Southern District of Illinois. As I have said to nearly 10,000 students, the penalties for drug dealers who choose to prey on young heroin users are very severe, and rightly so.”
Robinson, 30, of Fairview Heights, IL, will be sentenced in U.S. District Court in East St. Louis, IL on Monday, September 16, 2013 at 8:00 a.m. Robinson has been confined since his arraignment on the federal charge on November 10, 2011. Robinson faces a sentence of not less than 20 years and not more than life imprisonment.
Donnie T. Bauman was 22 years old when he died at his residence in Fairview Heights on December 21, 2010. According to documents filed with the District Court at Robinson’s change of plea hearing, Robinson sold Bauman two “buttons” of heroin (approximately one fifth of a gram) for $20 in cash about seven hours before family members discovered Bauman’s body. Next to Bauman’s body, police found a syringe, which Robinson admitted he had provided to Bauman.
The investigation which resulted in Robinson’s conviction was conducted by the Fairview Heights Police Department, Metropolitan Enforcement Group of Southwestern Illinois (MEGSI) and the Drug Enforcement Administration.
The case is assigned to AUSA Robert L. Garrison for prosecution.
Employee Pleads Guilty to Filing False Tax DocumentsRead the Press Release
Orlando, FL - United States Attorney Robert E. O'Neill announces today that Mary Jean Holzworth (63, Longwood) pleaded guilty to filing false tax documents. Holzworth faces a maximum penalty of three years in federal prison.
According to the plea agreement, while Holzworth worked for Fulfillment Partners, she embezzled $1,629,677. She made several purchases at high-end retail stores and bought high-end assets including a new Cadillac. She also used the embezzled funds to pay for gym memberships. When co-workers began to notice a change in Holzworth's lifestyle, she told them that she had an uncle in Germany who had passed away and left her an inheritance.
During the time Holzworth embezzled from Fulfillment Partners, she prepared and filed her own tax return for 2009 and reported only her W-2 wages and some interest. She did not report any embezzled funds. In an interview with the IRS, Holzworth admitted that she had prepared and signed a 2009 tax return under penalty of perjury. Holzworth admitted that she had filed the Form 1040 for tax year 2009 and knowingly failed to report the additional income from the theft on her tax return.
This case was investigated by Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney Tanya Davis Wilson.
District Man Sentenced to 17 Years in PrisonRead the Press Release
For Fatal Stabbing in Southeast Washington
-Attack Followed Argument About the Victim’s Dog-WASHINGTON – Ellsworth Colbert, 57, was sentenced today to 17 years in prison on charges stemming from a slaying in Southeast Washington during an argument over the victim’s dog, U.S. Attorney Ronald C. Machen Jr. announced.
Colbert, of Washington, D.C., was found guilty by a jury in January 2013 of manslaughter while armed, assault with a dangerous weapon, and carrying a dangerous weapon. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Herbert B. Dixon, Jr. Upon completion of his prison term, Colbert will be placed on five years of supervised release.
According to the evidence at trial, Colbert and the victim, Robert L. Wright, 37, became embroiled in an argument on the morning of March 4, 2012, in front of Colbert’s house in the 3500 block of Pope Street SE, in the Penn-Branch neighborhood. The trouble began after Mr. Wright and a friend walked their dog on Colbert’s property. Colbert became enraged and brandished a knife and a walking stick.
The altercation moved up the street to the house where the dog was kept, located in the 3600 block of Highwood Drive. During the course of the argument, Colbert lunged at Mr. Wright and cut him in the neck with his knife. Mr. Wright then retrieved a nearby shovel, and the two continued their altercation in the middle of the street. During the course of the fracas, Colbert tackled Mr. Wright to the pavement, causing him to lose possession of the shovel. Colbert then stabbed Mr. Wright in the back, chest and abdomen resulting in his death.
In announcing the sentence, U.S. Attorney Machen commended those who worked on the case for the Metropolitan Police Department (MPD), including detectives, mobile crime technicians, and others. He acknowledged the efforts of those who worked on the case for the U.S. Attorney’s Office, including Paralegal Specialists Fern Rhedrick, San Lane, Phil Aronson, Kwasi Fields and Sharon Newman, Litigation Support Services Specialists Ron Royal and Josh Ellen; Intelligence Analyst Lawrence Grasso, and Victim Advocate Tamara Ince.
Finally, U.S. Attorney Machen commended the work of Assistant U.S. Attorneys Robert J. Feitel and Edward A. O’Connell, who prosecuted the case at trial.
13-188Denver Man Pleads Guilty to Filing False Tax Return as Part of Running Illegal Sports Betting BusinessRead the Press Release
DENVER – Daniel Dinner, age 61, of Denver, Colorado, pled guilty today before U.S. District Court Judge Robert E. Blackburn to one count of filing a false income tax return, the United States Attorney’s Office and IRS Criminal Investigation announced. Dinner, who is free on bond, is scheduled to be sentenced by Judge Blackburn on August 8, 2013.
Dinner was originally charged by Information on April 12, 2013 after waiving his Constitutional right to be charged by Indictment. According to the facts contained in the Information as well as the stipulated facts contained in the plea agreement, from 2005 through 2009, Dinner ran an illegal sports betting business in the Denver metro area and on line for which most of his proceeds were cash. In March 2011, agents executed a search warrant and recovered approximately $1.2 million in cash from the defendant's properties and safe deposit boxes which came from both legitimate and illegitimate sources. Dinner owned two homes with an aggregate assessed value of more than one million dollars.
During 2005 through 2009 Dinner filed tax returns reporting some legitimate income from an agricultural business owned by a family trust but he also made money from his illegal sports betting business which he did not report on his tax returns. He signed and filed tax returns under penalty of perjury with the IRS for each of these years. He reported less income than he actually made.
The total tax loss to the government is $165,193 which Dinner has agreed to pay to the Internal Revenue Service as part of his plea agreement.
“While illegal sports betting is not a legitimate business, the income the defendant received is still taxable,” said U.S. Attorney John Walsh. “In this case the defendant faces criminal consequences for not declaring all of his income to the IRS and for not paying his income tax.”
“This is a reminder that all taxpayers should file complete and accurate tax returns; all income regardless of the source is taxable,” said Steven Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.
Dinner faces one count of filing a false income tax return which carries a penalty of not more than 3 years in federal prison and a fine of up to $250,000.
This case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant United States Attorney Suneeta Hazra.
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Counterfeiting Charges Filed on Lakewood ManRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that a grand jury returned a two-count indictment charging Christopher Kelley, age 30, of Lakewood, Ohio, with one count of passing counterfeit obligations and one count of possessing counterfeit obligations.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant's prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant United States Attorney Margaret A. Sweeney following an investigation by the United States Secret Service and the Ohio Bureau of Criminal Investigation, Ohio Casino Control Commission.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Corina Moldrem Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 29, 2013, before U.S. District Judge Sam E. Haddon, CORINA MOLDREM, a 26-year-old resident of Billings, was sentenced to a term of:
Prison: 92 months
Special Assessment: $100
Supervised Release: 5 years
MOLDREM was sentenced in connection with her guilty plea to conspiracy to possess and distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
Beginning in late 2009, a drug distribution group out of Las Vegas, Nevada, were distributing methamphetamine in Billings and the surrounding area. The F.B.I. Big Sky Safe Streets Task Force (BSSSTF) began an investigation and arranged for the purchase of methamphetamine from Jose Aguilar, Jr. and Anjel Aguilar. The BSSSTF learned that the Aguilar brothers were utilizing a distribution network in Billings to distribute Flores' methamphetamine. Two of the distributors for the group were Jeri Milheim and Corina MOLDREM.
The investigation by law enforcement uncovered that MOLDREM, along with others, not only distributed methamphetamine for the organization, but participated in the transportation, unpacking and repackaging of half pound to pound quantities of methamphetamine.
As part of the investigation, a probation search was conducted at MOLDREM's residence on July 16, 2010. The search uncovered 56.0 grams of meth, along with meth pipes, a drug scale, and a loaded .45 caliber handgun.
MOLDREM was interviewed and admitted to distributing methamphetamine personally as well as to assisting others in the transportation, unpacking and repackaging of methamphetamine for distribution in the Billings area.
MOLDREM admitted that she participated in a conspiracy that possessed and distributed over 500 grams of methamphetamine from the Summer of 2009, and continuing thereafter until in or about the late Summer of 2010.
Jose Aguilar, Anjel Aguilar, and Milheim pled guilty to federal charges and have been sentenced.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that MOLDREM will likely serve all of the time imposed by the court. In the federal system, MOLDREM does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Billings Big Sky Safe Streets Task Force.
Convicted Felon Exiled to 8 Years in Prison for Possessing A GunRead the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Corey Jones, age 38, of Baltimore, Maryland, today to eight years in prison followed by five years of supervised release for being a felon in possession of a gun. Judge Bennett enhanced Jones’ sentence upon finding that that Jones had attempted to obstruct justice when he absconded while on pretrial home detention with electronic monitoring.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to court documents and statement made a today’s sentencing hearing, On July 4, 2010, Baltimore police conduct a traffic stop of a vehicle after observing a broken and cracked side mirror. The vehicle had three occupants: the defendant in the front passenger seat, the defendant's brother, who was driving, and the defendant's wife in the rear passenger seat.
After officers approached the car, they saw Jones’ wife in the back passenger seat attempting to remove a knife from her waistband. An officer reached through the window and took the knife from her, and then ordered her out of the vehicle. Instead of complying, she reached for her purse and the officer then opened the door and removed her from the vehicle. Once she and the purse were on the sidewalk, the officer saw the butt of a handgun protruding from her purse. The gun was later identified as a loaded .32 caliber handgun.
Officers then removed Jones and his brother from the vehicle. As he was being arrested Jones told officers that the gun was his and that he had put it in his wife’s purse. Officers took all three of the car's occupants to the station and obtained voluntary, post-Miranda, taped statements from each of them. Jones again stated that the gun was his, and that he placed it in his wife’s purse without her knowledge before they got in the car.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney's Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Justin S. Herring and Paul E. Budlow, who prosecuted the case.
Civil Rights Laws Protect Servicemembers from Employment Violations and Financial FraudRead the Press Release
TULSA, Okla. — Active duty and reserve military servicemembers honorably protect our nation. Congress has recognized these sacrifices and has enacted laws to protect the civil rights of servicemembers and veterans. The Department of Justice, in partnerships with other federal agencies, offers programs that protect servicemembers which include: Uniform Services Employment and Reemployment Rights Act of 1994 (USERRA) and the Servicemembers Civil Relief Act (SCRA).
United States Attorney for the Northern District of Oklahoma Danny C. Williams Sr. said, “The U.S. Attorney’s Office will protect the rights of our servicemembers, and hold those accountable who discriminate and violate the rights of those who serve our nation.”
The Uniform Services Employment and Reemployment Rights Act of 1994 protects service members’ and veterans’ civilian employment rights and prohibits discrimination in hiring, promotion, retention, reemployment, and other employment benefits on the basis of a person’s prior service, current obligations, or intent to join a uniformed service. The civil rights law also requires employers to reemploy a servicemember from military service in a position he/or she would have attained had they not been called away for military service.
The Servicemembers Civil Relief Act provides financial security and protection to active duty servicemembers in areas of: rental agreements, security deposits, prepaid rent, evictions, installment contracts, credit card and mortgage interest rates, foreclosure, civil judicial proceedings, automobile leases, life insurance, health insurance and income tax payments. The law is designed to ease financial burdens on service members and their families during times of military service.
Servicemembers and veterans who believe they may have been a victim of employment discrimination or financial fraud based on their military service may report these violations to the Department of Justice. More information can be found at www.justice.gov. Please visit www.servicemembers.gov to learn about how the Department of Justice is protecting the rights of servicemembers.
Citizen of Turkey Sentenced to 62 Months in Federal Prison for Role in Atm "skimming" SchemeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that AHMET CILEK, 43, a citizen of Turkey last residing in Levittown, N.Y., was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 62 months of imprisonment for his participation in an ATM skimming scheme across southern New England.
According to court documents and statements made in court, between February 2011 and July 2011, CILEK, Mehmet Aydin, Gabriella Graham and others conspired to install “skimming” devices on automated teller machines (“ATMs”) at 11 banks and one credit union in Connecticut, Massachusetts and Rhode Island. The devices were able to capture the information encoded on the magnetic strips of bank cards used by ATM customers. The co-conspirators also placed devices on the ATMs that contained hidden pinhole cameras, which recorded the personal identification numbers that bank customers keyed into the ATMs to gain access to their accounts. The co-conspirators used the stolen information captured by the skimming devices and pinhole cameras to create counterfeit bank cards that allowed them to withdraw funds from the customers’ accounts.
Approximately 500 bank accounts were victimized and financial institutions have suffered losses of approximately $336,057.64 as a result of this scheme. As part of his sentence, CILEK was ordered to make full restitution, jointly and severally with his co-defendants.
CILEK has been detained since his arrest in Darien on June 20, 2011. On April 9, 2012, he pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft.
Aydin and Graham also pleaded guilty and have been sentenced to 59 months and 45 months of imprisonment, respectively.
This investigation was conducted by the Connecticut Financial Crimes Task Force, which includes members of the United States Secret Service, United States Postal Inspection Service, United States Department of State, Bureau of Diplomatic Security, Internal Revenue Service – Criminal Investigation, Connecticut State Police, and the Greenwich, Hartford, Stamford, Shelton and Stratford Police Departments. Acting U.S. Attorney Daly specifically recognized the efforts of the Greenwich Police Department, Darien Police Department, U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security, and U.S. Secret Service in Boston and Providence for their assistance in the investigation and prosecution of this matter.
This case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
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[email protected]Charlotte Man Is Sentenced to Six Months in Prison for Making Threats Against the President on TwitterRead the Press Release
CHARLOTTE, N.C. – Donte Jamar Sims, 22, of Charlotte, was sentenced today to serve six months in prison and one year of supervised release for threatening the life of the President of the United States, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Russell F. Nelson, Special Agent in Charge of the United States Secret Service, Charlotte Field Division, and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department.
According to filed court documents and today’s sentencing hearing, in September 2012 a criminal indictment charged Sims with one count of knowingly and willfully making a threat to take the life of and to inflict bodily harm upon Barack H. Obama, President of the United States, specifically by making threats to assassinate President Obama in statements Sims posted on his Twitter account, @DestroyLeague_D. Sims pleaded guilty to the charge in October 2012.
Court records show that Sims was aware that President Obama would be in Charlotte during the week of September 3, 2012, in connection with the Democratic National Convention. Media outlets had also reported that the President would be making several public appearances in Charlotte during that time period, including making public speeches at the Time Warner Arena or the Bank of America Stadium.
On September 4, 2012, the U.S. Secret Service located the following statements on Twitter made using the Twitter user name “@DestroyLeague_D.”:
a) 09/03/12 @ 0606 hours: “Well Ima Assassinate president Obama this evening !... Gotta get this monkey off my chest while he’s in town -_-“ (https://twitter.com/DestroyLeague_D/status/242609574576803841)
b) 09/03/12 @ 0608 hours: “Ima hit president Obama with that Lee Harvey Oswald swag”
c) 09/03/12 @ 0612 hours: “The Secret Service is gonna be defenseless once I aim the Assault Rifle at Barack’s Forehead … F* the #DNC !”
d) 09/03/12 @ 0619 hours: “he wont even make it to the coliseum”
e) 09/03/12 @ 0620 hours: “*Plotting president Obama’s Murder”
The personal photograph on the profile associated with @DestroyLeague_D published on the Twitter website was that of Sims.
On September 5, 2012, agents with the U.S. Secret Service conducted an interview of Sims at his Charlotte residence. Court records indicate Sims acknowledged that he used Twitter and that his account was named @DestroyLeague_D. Sims also acknowledged using his Twitter account @DestroyLeague_D to publish the Tweets threatening the President, and also stated that he published the statements because he hated President Obama.
In handing down Sims’ sentence, Chief U.S. District Judge Robert J. Conrad, Jr. noted the seriousness of the offense and the need for the sentence to promote a respect for the law.
The defendant was ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was led by the U.S. Secret Service with the assistance of CMPD. The prosecution for the government was handled by Assistant U.S. Attorney Robert Gleason of the U.S. Attorney’s Office in Charlotte.
Charleroi Man Charged with Failing to Register as A Sex OffenderRead the Press Release
PITTSBURGH, Pa. - A resident of Charleroi, Pa., has been indicted by a federal grand jury in Pittsburgh for failing to register as a convicted sex offender, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on May 23, and unsealed yesterday, named Kerry McFeely, age 53, as the sole defendant.
According to the indictment, McFeely was required to register under the Sex Offender Registration and Notification Act after having been convicted in 1993 in Vermont Superior Court, Chitteden Criminal Division of the felony sex offense of Sexual Assault of Minor Under the Age of 16. The indictment states that from around April of 2011 through May 23, 2013, McFeely traveled in interstate commerce and knowingly failed to register and update a registration, as required by the Sex Offender Registration and Notification Act.
The law provides for a maximum total sentence of up to 10 years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Amy L. Johnston is prosecuting this case on behalf of the United States.
The United States Marshals Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Centralia Man Sentenced on Drug ChargeRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Jason T. Bayles, 34, of Centralia, IL, was sentenced in United States District Court in East St. Louis on Tuesday, May 28, 2013 to 100 months in federal prison for “Possession of Pseudoephedrine for the Manufacture of Methamphetamine.” Bayles pled guilty to that charge on January 24, 2013.
At his change of plea hearing in January, Bayles admitted purchasing hundreds of pseudoephedrine tablets in both Marion and Clinton Counties between 2009 and 2011, knowing that these tablets would be used to manufacture methamphetamine.
The investigation which resulted in Bayles’ conviction and sentence was conducted by the Marion County Sheriff’s Office, and the Drug Enforcement Administration.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Cedar Rapids Man Sentenced for Posting False Information About A Consumer Product on the InternetRead the Press Release
A man who posted a false statement on Facebook claiming a consumer product was contaminated was sentenced today to five years in federal prison.
Luke A. Truesdell, age 40, from Cedar Rapids, Iowa, received the prison term after a February 8, 2013 guilty plea to one count of communicating false information that a consumer product had been tainted and one count of making a false statement to the United States Food and Drug Administration (FDA).
In a plea agreement, Truesdell admitted that, on January 26, 2012, shortly after he was fired from his job in Linn County, Iowa, he called the FDA and made a false statement. Truesdell told the FDA he was a Hepatitis B carrier and then falsely claimed he had bled into batches of an FDA regulated consumer product manufactured by his former employer. Truesdell also admitted that, on January 27, 2012, he posted similar, false information on the Facebook page of one of his former employer’s customers.
Truesdell was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Truesdell was sentenced to five years’ imprisonment and ordered to make $17,721 in restitution his former employer. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. In announcing the sentence, Judge Reade said, “we all know when you put something on the internet, you are posting it to the world.” Judge Reade added that this type of criminal activity “can result in consumer fear and panic.”
“This case demonstrates the blatant misuse of social media to intentionally cause financial harm to business entities manufacturing FDA regulated products,” said Special Agent in Charge Patrick J. Holland of FDA’s Office of Criminal Investigations, Kansas City Field Office. “The FDA will continue to aggressively pursue perpetrators of such acts, and ensure that they are punished to the full extent of the law.”
Truesdell is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Peter Deegan and was investigated by the United States Food and Drug Administration Office of Criminal Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-CR-8 LRR.
California Man sentenced to 48 month in prison for roll in drug conspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a California resident was sentenced in Anchorage to federal prison for drug conspiracy.
Charles M. Ferris, 61, of Sacramento, California, was sentenced yesterday by U.S. District Court Judge Timothy M. Burgess to 48 months prison for his role in a drug trafficking conspiracy.
According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, the charges arose from a joint investigation including the Drug Enforcement Administration, Port of Seattle Police Department and the Juneau Police Department-Drug Metro Unit, which were investigating the importation of oxycodone into Juneau, Alaska. In July 2010, Ferris and others conspired to import oxycodone from Sacramento, California, to Juneau, Alaska. On July 4, 2010, Ferris sent a drug courier carrying over 500 80mg oxycodone pills to Juneau on a commercial airline.Prior to imposing sentence, Judge Burgess emphasized the seriousness of the offense and the need to deter the defendant and others as reasons for imposing the 48 month prison sentence.
Ms. Loeffler commended the Drug Enforcement Administration, Port of Seattle Police Department and the Juneau Police Department - Drug Metro Unit for the investigation leading to the successful prosecution of Ferris.Buffalo Man Sentenced on Drug Conspiracy ChargeRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that John A. Cruz, 26, of Buffalo, N.Y., who was convicted of conspiracy to possess with intent to distribute heroin, was sentenced by U.S. District Judge William M. Skretny to 58 months in prison.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that between December 2009 and August 17, 2010, Cruz sold quantities of heroin to other members of a drug conspiracy that was the subject of an ongoing criminal investigation. At the time of his arrest, the defendant was awaiting sentencing on other federal drug distribution charges.
Williams was arrested along with 22 others in August of 2010 for narcotics trafficking. To date 16 defendants have been convicted.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, The Niagara County Drug Enforcement Task Force, under the direction of Sheriff James Votour, and the Niagara Frontier Transit Authority Police, under the direction of Chief George Gast.Buffalo Man Pleads Guilty to Child PornographyRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that John Luchetti, 27, of Buffalo, N.Y., pleaded guilty before U.S. Judge Richard J. Arcara to a charge of receipt of child pornography. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Maura K. O'Donnell, who is handling the case, stated that the defendant received and distributed images and videos of child pornography through an Internet file sharing program. Luchetti possessed over 600 images of child pornography on his laptop computer, which included images of prepubescent minors and acts of violence.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Sentencing is scheduled for September 6, 2013 at 1:00 p.m. before Judge Arcara.Bank Teller Pleads Guilty to Embezzling Money from BankRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 64-year-old woman from the southeastern Minnesota community of Wykoff pleaded guilty to embezzling approximately $35,520 from the Security State Bank where she was employed as the head teller. Cheryl Lynn Holzer pleaded guilty to one count of bank embezzlement. Holzer, who was charged on May 3, 2013, entered her plea before United States District Court Judge David S. Doty.
In her plea agreement, Holzer admitted that between December 2010 and February 2012, she took bundles of cash from the bank’s vault for her personal use, primarily to pay her mortgage and other bills. She worked at the bank, located in Wykoff.
For her crime, Holzer faces a potential maximum penalty of 30 years in prison. Judge Doty will determine her sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.Alton Man Pleads Guilty to Firearm OffenseRead the Press Release
On May 28, 2013, Jared R. Henry, a thirty-four year old Alton, Illinois, man pled guilty in federal district court, in East St. Louis, to unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Henry is scheduled for sentencing on September 13, 2013, at which time he faces a maximum potential sentence of 10 years’ in prison and a fine of up to $250,000, not more than 3 years’ of supervised release after his prison term, and a mandatory special assessment of $100. Henry also agreed to forfeiture of the firearms.
Court proceedings revealed that on October 18, 2012, police officers went to a residence in Alton, IL, after receiving an anonymous tip about drug activity at the home. Officers were aware of an active warrant for Henry’s arrest before arriving on the premises. Officers knocked several minutes upon arrival and were allowed to enter the home by a resident answering the door. Once inside, an officer immediately observed Henry lying in bed in a bedroom in direct view of the front door. He was presented with the warrant, arrested and removed from the household. Officers were given written consent to search the premises by the resident answering the door. Five different firearms were recovered during the search.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Alton Police Department, and is assigned to Assistant United States Attorney Daniel T. Kapsak for prosecution.