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10 July 2013
Foreign National Pleads Guilty to Role in Drug Trafficking OrganizationRead the Press Release
Maria Elena Rico-Lopez, 32, a citizen of Mexico who most recently resided in St. Louis, Missouri, entered a plea of guilty on July 10, 2013, to Conspiracy to Distribute and Possess With the Intent to Distribute Cocaine, and Entry Into the United States Without Inspection, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Rico-Lopez had been charged on August 22, 2012, in an eleven count indictment charging a total of ten individuals with being members of a large drug trafficking organization. Rico-Lopez is currently scheduled to be sentenced on November 1, 2013, at which time she faces a potential sentence of 5-40 years in prison, followed by a term of supervised release of not less than four years, a fine of up to $5,000,000, and a $100 special assessment. Rico-Lopez also admitted the Forfeiture Allegation in the Indictment and agreed to forfeit $34,720.00 to the United States. Rico-Lopez admitted that she is a citizen of Mexico who is in the United States illegally. She agreed to the entry of a Judicial Order of Removal, which will require her to be deported following the service of her sentence.
According to the Stipulation of Facts which was filed with the Court at the time of the plea, the organization charged in the Indictment was responsible for importing cocaine from Mexico into the United States, where it was taken to Salt Lake City, Utah. From Salt Lake City, the cocaine was transported by members of the conspiracy to the St. Louis Metropolitan area where it was distributed by various members of the organization, including some who operated within the Southern District of Illinois. Proceeds for the sales of the cocaine were then transported back to the leaders of the conspiracy in Salt Lake City.
Of the nine individuals named in the indictment with Rico-Lopez, five others have entered pleas of guilty and have either been sentenced or are awaiting sentencing; two others have been arrested and are awaiting trial; two are fugitives. Those not yet convicted are presumed innocent because an indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
Evidence in support of the indictment in this case was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), U.S. Marshal Service, the Granite City Police Department, Fairview Heights Police Department, the Collinsville Police Department, the St. Louis Metropolitan Police Department, the St. Louis County (Missouri) Police Department, the St. Charles County (Missouri) Sheriff=s Department, and the Nebraska State Patrol. This case is assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Florida Attorney Charged with Laundering Purported Stock Fraud ProceedsRead the Press Release
BROOKLYN, NY - Michael J. Scaglione, Esq., 41, an attorney in Coral Gables, Florida, was arrested this morning on charges that he laundered over $750,000, which he believed were proceeds from a penny stock fraud scheme. The money was, in fact, provided to Scaglione by an undercover law enforcement agent who posed as a criminal stock promoter as part of a sting operation. Scaglione, who is a partner at Scaglione Law Firm, P.A., in Coral Gables, Florida, was arrested after he took possession of an additional $500,000 in cash that he agreed to launder.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Toni Weirauch, Special Agent in Charge, United States Internal Revenue Service, Criminal Investigation, New York (IRS).
According to the complaint unsealed this morning in the Eastern District of New York, Scaglione exploited his position as an attorney to launder money through an escrow account for an undercover law enforcement agent (“undercover agent”) who posed as a corrupt stock promoter. In his dealings with Scaglione, the undercover agent represented himself to be a middleman working with corrupt stock brokers who artificially inflated prices for worthless stock in exchange for high commissions. Scaglione agreed to launder what he believed were proceeds of this stock fraud through his attorney escrow account in order to hide that money from the United States Securities and Exchange Commission and the IRS. Scaglione then funneled over $750,000, including $88,000 in cash given to him in a Federal Express box in the lobby of a Miami Beach hotel, through the escrow account into the undercover agent’s bank account in Long Island, New York. Scaglione carefully structured the movement of these funds to avoid triggering financial reporting requirements. In exchange, Scaglione collected over $25,000 in fees. In recorded conversations, Scaglione assured the undercover agent that their conversations were “completely privileged” and that his money was “safe” with Scaglione. When the undercover agent explained to Scaglione that he did not “want to go to jail,” Scaglione stated to the undercover agent that the escrow account was “tight as can be.” Directly prior to his arrest this morning, at a hotel in Miami Beach, Florida, Scaglione accepted an additional $500,000 in cash from the undercover agent, which Scaglione believed to be proceeds from the penny stock fraud.
“As alleged in the complaint, Scaglione hid behind his license to practice law as he threw himself into the purported scheme to launder money. In so doing he crossed the line from attorney to defendant,” stated United States Attorney Lynch. “I would like to thank our partners at the FBI and the IRS for their swift action and effective work on this important investigation.”
FBI Assistant Director in Charge Venizelos stated, “As alleged, the defendant breached the code of ethics for his profession and flagrantly broke the law, in laundering what he believed to be the proceeds of criminal activity. Contrary to the counsel he gave, the attorney-client privilege is not a veil of secrecy to hide criminal conduct.”
IRS Special Agent in Charge Weirauch stated, “Criminal attempts to conceal reportable financial transactions from government agencies, including the Internal Revenue Service and the Securities and Exchange Commission, may appear to be victimless crimes to some. However, they erode our nation’s financial systems and ultimately harm the American public. In particular, the laundering of proceeds from illegitimate activities that are nevertheless taxable threatens our voluntary tax compliance system; failure to investigate and prosecute these types of crimes would erode public confidence.”
The defendant is scheduled to appear tomorrow before United States Magistrate Judge Alicia M. Otazo-Reyes at the United States Courthouse in Miami, Florida, for removal proceedings to the Eastern District of New York.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorney Jacquelyn M. Kasulis..
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.
The Defendant
Name: MICHAEL J. SCAGLIONE
Age: 41
Miami Springs, FloridaFinal Dedendent Pleads Guity in Family Drug Conspiracy which Sought to Cntrol Two City StreetRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Leo Mellerson pleaded guilty to conspiracy to distribute crack cocaine before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison, a $1,000,000 fine or both. Mellerson was one of nine defendants originally charged by federal prosecutors as part of a family run drug operation that sought to control narcotics activities on two City of Buffalo Streets. All defendants have now been convicted and are in jail awaiting sentencing.
"Today's conviction means more than the end of the Theresa Anderson drug trafficking organization,” said U.S. Attorney Hochul. "To the residents and businesses living and operating on the East Side of Buffalo, today’s development represents a chance to reclaim their neighborhood, restores their rights to live in peace and safety, and constitutes yet another success story in our continuing battle against crime in the City.”Assistant U.S. Attorney Melissa Marangola, who handled the case for the Government, stated that between 2000 and February 2012, the defendant was one of nine defendants who participated in a drug trafficking organization the members of which were all related to one other. The leader of the organization was Theresa Anderson, a grandmother who utilized her children and grandchildren, as well as their spouses and boyfriends, for the group’s narcotics trafficking activities.
The organization sought to control all drug sales occurring on Swinburne and Deshler Streets, Buffalo. In order to achieve a monopoly, Anderson threatened and intimidated rival narcotics traffickers, and purchased multiple houses in the area which were then used for the selling and storing of the illegal narcotics.
In February, 2012, Theresa Anderson, along with Mellerson, Dion Anderson, Melvin Calhoun, Toshia Hodge, Anquensha Hodge, Steven Butler, Wymiko Anderson, and Tajia Anderson were all arrested in a joint operation conducted by federal, State, and City police agencies. Multiple properties were also seized, along with more than $52,000 in U.S. Currency. All defendants were convicted via guilty pleas occurring over the past several weeks.
DEA Special Agent in Charge Brian R. Crowell stated, "The Anderson drug trafficking organization was a family run business responsible for spreading fear, intimidation and crack cocaine throughout the Buffalo area. Due to state, local and federal law enforcement partnership, Theresa Anderson, the matriarch of the drug distribution organization, has pled guilty marking the end of their threat to public safety."
As a result of her conviction, and in addition to facing a substantial term of imprisonment, Anderson will forfeit to the Government a total of 10 properties including houses on Deshler St., Empire St., Hutchinson Ave., and Swinburne St.. As it has done in several recent instances, the United States Attorney's Office will consider providing these properties to local not-for-profit organizations and community groups if such groups qualify under federal regulation. Any organization interested in potentially acquiring a forfeited property should contact the U.S. Attorney's Office at 716-843-5700.
U.S. Attorney Hochul concluded, “This case was somewhat unusual in that the criminal organization was controlled by a woman and grandmother who clearly knew better than to engage in activities which hurt so many. Thanks to both the convictions and the seizures of her properties, Anderson and her convicted family members will no longer have any effect upon our remaining community of good neighbors.”
The convictions are the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the New York State Police, under the direction of Major Michael Cerretto.Mellerson will be sentenced on October 24, 2013 at 12:00 p.m. before Judge Arcara.
Federal Grand Jury Indicts Nevada Native Arrested in Seattle with Stolen Truck, Weapons and Homemade ExplosivesRead the Press Release
A 22-year-old man who was arrested last week by University of Washington Police in a stolen truck with stolen firearms, body armor and gasoline incendiary devices, was charged federally by the grand jury this morning, announced U.S. Attorney Jenny A. Durkan. JUSTIN MILES JASPER, will make his initial appearance in U.S. District Court in Seattle at 1:30 on Thursday July 11, 2013. JASPER is charged with five counts: transportation of a stolen vehicle; possession of a stolen vehicle; possession of stolen firearms; possession of destructive devices; and possession of explosives during the commission of a felony.
JASPER was arrested on July 3, 2013 near the UW campus in Seattle. He was driving a 1998 Dodge Ram 2500 pick-up truck with Montana plates. The truck had been reported stolen by the owner in Butte, Montana. Inside the truck police found a Stevens Model 311A double-barrel 12-gauge shotgun, with no serial number, and a Mauser Model 1895 bolt-action rifle. Both guns had been stolen from the same owner as the truck. The truck also contained destructive devices commonly referred to as “Molotov cocktails.”
Four of the counts in the indictment have a maximum penalty of ten years in prison. Possession of explosives during the commission of a felony carries a mandatory minimum ten year sentence in addition to any other sentence imposed in the case.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI, the UW Police Department, and the Seattle Police Department. The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Federal Grand Jury in Fort Wayne Returns IndictmentRead the Press Release
FortWayne,IN - TheUnited States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictment on June 26, 2013:
Cheryl Green, 50, of Fort Wayne, Indiana, is charged in a two count Indictmentwithfalse statementsinapplicationof socialsecuritybenefitsandtheftofgovernmentpropertyboth occurring on or about November 2010 and continuing to on or about August 2012.This charge wasfiledasaresultofaninvestigationbytheSocialSecurityAdministrationandtheUnitedStates PostalInspectionService.ThiscasehasbeenassignedtoandwillbeprosecutedbyAssistant United States Attorney Lovita Morris King.
TheUnitedStatesAttorney'sOfficeemphasizedthatanIndictmentismerelyanallegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed willbedetermined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Erie Man Charged with Child Exploitation CrimesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
The three-count indictment named Todd Calvin Lapping, 39, as the sole defendant. According to the indictment presented to the court, Lapping produced images of a minor engaged in sexually explicit conduct and possessed computer images depicting minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 80 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Millcreek Police Department, the Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Eighteen Individuals Named in 48-Count Indictment on Cocaine and Heroin ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Two others indicted by Federal Grand Jury
CLARKSBURG, WEST VIRGINIA —United States Attorney William J. Ihlenfeld, II, announced that a Federal Grand Jury sitting in Clarksburg returned a 48-count Indictment charging:
DEVON JOHNSON a/k/a “TY,” age 25, of McKees Rocks, Pennsylvania; RAYSON BROWN a/k/a “RAY DALLAZ” a/k/a “TURTLE,” age 22, of West Homestead, Pennsylvania; GREGORY MORRIS a/k/a “KG” a/k/a “KILLERS,” age 30, of West Mifflin, Pennsylvania; CHARLES E. JEFFERSON, JR. a/k/a “LC,” age 25, of Westover, West Virginia; MAHMOUD FARES ABULABAN a/k/a “MAC,” age 24, of Morgantown, West Virginia; ANTHONY MICHAEL FATA a/k/a “HUBBA,” age 24, of Morgantown; JACOB WHITE, age 25; ERIC SNEED, age 24; BARTLEY JEFFERSON a/k/a “BART,” age 22, of Morgantown; CHRISTINA SHAFFER, age 27, of Morgantown; BRITTANY BOWER, age
26, of Morgantown; ANGELA NELSON, age 33; FARRAH ECHARD, age 24, of Reedsville, West Virginia; BEN PHARES, age 26, of Kingwood, West Virginia; GREG WILLIAMS, age
40; WRIGHT BOWEN, age 31; WILLIAM A. BLOSSER, age 29, of Morgantown; and, JASON HUNT, age 31, of Core, West Virginia, were charged with “Conspiracy to Distribute Heroin and Cocaine” from the Summer of 2010 to the Spring of 2013, in Monongalia County, West Virginia.BARTLEY JEFFERSON faces a total of seven counts; JOHNSON, MORRIS, CHARLES JEFFERSON, ABULABAN, WHITE, and BOWEN face a total of six counts; SNEED and BLOSSSER face a total of four counts; SHAFFER, BOWER, NELSON and PHARES face a total of three counts; and, BROWN, FATA, ECHARD, WILLIAMS and HUNT face a total of two counts.
In addition to the conspiracy charge, other charges include the distribution of heroin and cocaine and the distribution of heroin within 1,000 feet of West Virginia University, Brookhaven Elementary School, Tot Lot playground at Marjorie Gardens, Star City playground and West Virginia Junior College.
The U.S. Attorney’s Office is seeking to forfeit $1,551 in United States currency which constitutes proceeds obtained from the illegal activity.
Each defendant faces up to five to four years on the conspiracy charge; twenty years in prison on the distribution charges and up to forty years in prison on the sales that occurred near a protected location.
This case will be prosecuted by Assistant United States Attorney Zelda E. Wesley and was investigated by the West Virginia State Police-Bureau of Criminal Investigations.
In addition, the following indictments were also returned by the grand jury this week: JOHN GEORGE CHAMBERS, age 62, of Clarksburg, West Virginia, was named in a one-count Indictment charging him with “Possession of Child Pornography on July 17, 2012, in Harrison County. The Indictment also contains a Forfeiture Allegation wherein the United States seeks to forfeit the computer, hard drives and disks which were seized from CHAMBERS on July 17, 2012. If convicted, CHAMBERS faces up to 10 years imprisonment and a $250,000 fine. This case will be prosecuted by Assistant United States Attorney Zelda E. Wesley and was investigated by the Federal Bureau of Investigation.This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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.
FRANKLIN C. MOORE, age 43, of Precious, West Virginia, was named in a one-count Indictment charging him with “Felon in Possession of a Firearm” on November 3, 2013, in Taylor County. If convicted, BRANTLEY faces a maximum exposure of 10 years imprisonment and a fine of $250,000. The Indictment also contains a Forfeiture Allegation wherein the United States seeks to forfeit the firearm. This case will be prosecuted by Assistant United States Attorney Zelda E. Wesley and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
It should be noted that the charges contained in the Indictment are merely accusations and not evidence of guilt, and that each defendant is presumed innocent until and unless proven guilty.
Edwardsville Resident Indicted on Child Pornography ChargeRead the Press Release
Christopher P. Hill, 54, of Edwardsville, IL, has been indicted by a federal grand jury for knowingly receiving child pornography, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The one-count indictment charges that from November 2011 to January 2013, Hill used a computer and a peer-to-peer file sharing software application knowingly to download thousands of child pornography images and videos. The crime carries a mandatory minimum five-year prison sentence and is punishable by as much as 20 years in prison, a $250,000 fine, and supervised release for life.
Hill made his initial appearance on the charge on Tuesday, July 9. He was arraigned and pled not guilty. Despite the United States seeking that Hill be held without bond pending trial, Hill was ordered released on a $20,000 unsecured bond with conditions that include electronic monitoring, no unsupervised contact with anyone under the age of 18, and no access to the internet. Trial is currently scheduled for September 9, 2013.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case is being investigated by agents of the United States Secret Service, the Edwardsville Police Department, the Greenville Police Department, the Illinois State Police, the Madison County Sheriff’s Department, and the FBI Cybercrime Task Force. Assistant United States Attorney Nathan D. Stump is prosecuting the case.
D’iberville Man Sentenced on Federal Gun ChargeRead the Press Release
Gulfport, Miss - Jarvis Romaine Bell, 33 of D’Iberville, Mississippi, was sentenced to 120 months in federal prison followed by three years of supervised release for possession of a firearm by a convicted felon, announced U.S. Attorney Gregory K. Davis. He was also ordered to pay a $5000 fine and forfeit a Springfield, 9mm pistol, model XDM9, and any ammunition.
Bell pled guilty to the charge on March 27, 2013.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Biloxi Police Department. It was prosecuted by Assistant U.S. Attorney Annette Williams.
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
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Durham Men Plead Guilty to Federal Firearm FeloniesRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court today JASON LEMAR MEDLYN, 31, of Durham, North Carolina and IRESHIA DONTE SUMMERS aka ERIC SUMMERS, 35, also of Durham, North Carolina pled guilty before United States Magistrate Judge Robert B. Jones, Jr. to several firearms related charges.
MEDLYN and SUMMERS bothpled guilty to one count each of Conspiracy, in violation of Title 18, United States Code, section 371; Possession of Firearms in a School Zone and aiding and abetting, in violation of Title 18, United States Code, sections 922(q)(2)(A) and 924 and 2; and Felon in Possession of a Firearm and Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924.
According to the investigation, on May 31, 2012, MEDLYN and SUMMERS broke into two residences in Granville County and stole, among other things, personal property, firearms and ammunition. The defendants were discovered while still at the second residence by a Granville County Sheriff’s Deputy responding to a call regarding a residential break in. Two males, later identified as MEDLYN and SUMMERS, jumped into a vehicle and sped away. The passenger in the fleeing vehicle fired shots at the pursuing deputy. A North Carolina State Highway Patrolman picked up the chase and the passenger also fired shots at the trooper.
During the chase the car hit mailboxes and stopped near an auto dealership and a garage. Three guns were found near the vehicle along with a stolen television, nooks, and jewelry. The defendants traveled through two school zones with firearms during the chase.
MEDLYN and SUMMERS face a maximum sentence of 240 months imprisonment along with three years of supervised release at sentencing. They are expected to be sentenced during the October 8, 2013 term of court by Senior United States District Judge Malcolm J. Howard.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Granville County Sheriff’s Office, the Durham Police Department, North Carolina Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney S. Katherine Burnette prosecuted the case.
Dominican Replublic Native Sentenced on Heroin Distribution ChargesRead the Press Release
Buffalo, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Elvis Espinosa, 46, of Buffalo, N.Y., who was convicted of conspiracy to distribute heroin, was sentenced to 60 months in prison by U.S. District Judge Richard J. Arcara. In addition, the defendant was ordered deported to the Dominican Republic after his sentence is completed.
Assistant U.S. Attorney Mary Clare Kane, who handled the case, stated that the defendant was arrested in August 2009 for his involvement in obtaining heroin from suppliers in New York City for re-distribution in Buffalo. Police made undercover drug purchases from Espinosa and his associates which led to the wiretapping of Espinosa’s cell phone conversations.
Espinosa was arrested along with eight others. All nine defendants have been convicted.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Region; and Special Agents of the New York State Police, under the direction of Joseph A. D'Amico, Superintendent.
Dade City Man Sentenced to Nineteen Years in Federal Prison for Armed Drug TraffickingRead the Press Release
Tampa, Florida - U.S. District Judge Elizabeth A. Kovachevich today sentenced Angel Martinez (34, Dade City) to nineteen years in federal prison for possessing methamphetamine with intent to distribute, and possessing firearms in furtherance of a drug trafficking crime. The sentence consists of 14 years in federal prison for the drug trafficking offense, followed by a five year consecutive sentence for the firearm charge. Martinez pleaded guilty on April 19, 2013.
According to court documents, on September 20, 2012, investigators executed a search warrant at Martinez's residence in Dade City. In Martinez's bedroom, investigators located twenty-nine grams of methamphetamine and three firearms. In a shed next to his house, investigators located more than 250 grams of methamphetamine, two hand guns, numerous rounds of ammunition, and five digital scales.
This case was investigated by the Drug Enforcement Administration and the Pasco County Sheriff’s Office as part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation's illegal drug supply. It was prosecuted by Assistant United States Attorneys Christopher F. Murray.
Co-Conspirators Indicted for Engaging in A Contracting Kickback SchemeRead the Press Release
NORFOLK, Va. – William Wellington Hooper, Jr., 46, of Virginia Beach, Virginia, and Harry Siegfried Rahn, Jr., 52, of San Francisco, California were indicted by a federal grand jury today on charges of conspiracy, providing and accepting kickbacks relating to government contracts, wire fraud, and false statements.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia made the announcement.
Hooper and Rahn face a maximum penalty of five years in prison for conspiracy, up to 10 years in prison on each count of illegal kickbacks, 20 years in prison on each count of wire fraud, and five years for false statements if convicted.
According to the indictment, between July 2010 and December 2012, William Hooper and Harry Rahn engaged in a contracting kickback scheme in which Rahn paid approximately $72,000 in monetary kickbacks to Hooper, much of which was related to military contracts. Hooper had been employed as a manager at Oceaneering International, Inc. (OII) of Chesapeake, Virginia since April 2010. In July 2010, the Naval Sea System Command (NAVSEA) awarded a cost-plus fixed fee contract to OII. Two weeks after the Navy contract award to OII, Rahn, a long-time acquaintance of Hooper, registered Rahn Systems International, LLC (RSI) in San Francisco, California, with Rahn serving as the owner. Shortly thereafter, Hooper began recommending purchase orders pertaining to the NAVSEA contract to the new subcontractor RSI. Between August and December 2011, Rahn mailed 21 U.S. Postal money orders totaling over $18,000 to Hooper and to Hooper’s landlord in Virginia Beach. By November 2011, Hooper left OII for unknown reasons and was hired as the as the Director of Fabrication for Steel America, a division of Colonna’s Shipyard, Inc. in Norfolk, Virginia. Once hired, Hooper once again began recommending subcontracts to RSI, primarily on Colonna’s commercial contracts. While at Steel America, RSI wired over $58,000 in 11 money wire transactions to a bank account Hooper opened in February 2012.
This case was investigated by the Defense Criminal Investigative Service (DCIS) and the Naval Criminal Investigative Service (NCIS). Assistant United States Attorney Stephen W. Haynie is prosecuting the case on behalf of the United States.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
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.Christian County, Kentucky Resident Guilty of Possessing Multiple Firearms Including an Iraqi Machine GunRead the Press Release
PADUCAH, Ky. – A Christian County, Kentucky resident, pleaded guilty in United States District Court today, before Senior Judge Thomas B. Russell, to charges of possession of an unregistered firearm and possession of firearms by a person convicted of a misdemeanor crime of violence, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Lawrence E. Bussell, age 45, pleaded guilty today, to a three count indictment, returned by a grand jury meeting in Paducah, Kentucky, on October 9, 2012. Bussell was charged with the illegal possession of eleven firearms including an AR-15 type rifle and an Iraqi machine gun, which was not registered to him in the National Firearms Registration and Transfer Record.
Bussell had been previously convicted of spouse abuse on two occasions in the District Court of Christian County, Kentucky. He was convicted of a misdemeanor crime of domestic violence (Assault 4th Degree) on May 13, 1994 and again on August 24, 1994.
In court, Bussell admitted to knowingly possessing, on November 5, 2009, a Yankee Hill Machine Co., Model YHM-15f, .223 caliber semi-automatic AR-15 type rifle. Further, Bussell admitted to knowingly possessing, on August 7, 2012, eleven firearms including; a Smith and Wesson, Model M&P 15m .223 caliber rifle; a Remington Arms Model 1100, 12 gauge shotgun; a Leinad, Inc., Model MM11, 9mm rifle; a Leinad, Inc., Model DS, 410 gauge shotgun; a Roman/Cugir, Model GP WASR-10, 7.62 caliber rifle; a Taurus, Model 669, .357 caliber handgun; a Mossberg, Model 500, 12 gauge shotgun; a Remington Arms, Model 870, 12 gauge shotgun; a HiPoint, Model C9, 9mm handgun; and an Iraqi unknown make and model machine gun.
Bussell faces up to 30 years in prison, a maximum fine of $750,000 and supervised release of up to three years. Bussell forfeited to the United States all firearms and ammunition involved in the commission of the offenses in counts one through three of the indictment.
Bussell will be sentenced on October 10, 2013, at noon, in Paducah, by Senior Judge Russell.
This case is being prosecuted by Assistant United States Attorney James H. Barr and was investigated by the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Chillicothe Woman Indicted for Embezzling $4 Million from EmployerRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Chillicothe, Mo., woman has been indicted by a federal grand jury for a wire fraud scheme in which she embezzled nearly $4 million from her employer, Burdg, Dunham & Associates Construction Corp. in Hamilton, Mo.
Donna M. Preszler, 60, of Chillicothe, was charged in a 20-count indictment returned under seal by a federal grand jury on June 20, 2013. That indictment was unsealed and made public today upon Preszler’s arrest and initial court appearance.
Preszler was employed at Burdg, Dunham & Associates (BDA) from 2001 until June 2012, working as an accounting manager since 2004. BDA is a general contractor specializing in retail construction of malls, strip centers, family life centers, and other stand-alone projects. BDA serves customers in all 50 states, Puerto Rico and Canada, primarily building for national retail organizations.
The indictment alleges that Preszler embezzled $3,912,000 in a wire fraud scheme from June 30, 2006 through June 15, 2012. Preszler allegedly used her employer’s accounting software to create payroll data files that contained unauthorized false and fictitious payments to her bank accounts and others.
Preszler allegedly utilized her role as accounting manager to add false and fictitious non-taxable pay, such as expense reimbursements to herself. Over a six-year period, the indictment says, Preszler transferred approximately $3,912,000 in false and fictitious payments to herself and her family.
Preszler also added false and fictitious overtime hours and overtime pay to her weekly payroll, the indictment says. Preszler allegedly initiated approximately $76,000 in unauthorized overtime payments to herself from November 2004 through June 2006, which were subject to BDA withholding income taxes.
Preszler concealed her transfers by password protecting her payroll information, creating false and fictitious expense accounts and otherwise manipulating BDA’s payroll and accounting records.
The federal indictment charges Preszler with six counts of wire fraud and 14 counts of money laundering.
The indictment also contains a forfeiture allegation, which would require Preszler to forfeit to the government any property derived from the proceeds of the alleged violations, including a money judgment of $3,912,000, her residence on a 3.44-acre tract in Chillicothe as well as three other residential properties, two 14kt diamond rings, 10 vehicles (a 2007 Ford Taurus, a 2007 Mazda CX-7, a 2011 Nissan Versa, a 2010 Nissan 370Z, a 2007 Nissan Altima, a 2011 Ford F150, a 2010 Ford F150, a 2010 Ford Escape, a 2012 Ford Explorer and a 2012 Nissan Rogue), three 2011 Yamaha ATVs and several bank accounts and funeral trust accounts. Most of those items have been seized by law enforcement agents.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by the FBI.Burnsville Man Sentenced for Possessing A Stolen FirearmRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 21-year-old Burnsville man was sentenced for possessing a stolen .40-caliber, semi-automatic pistol. On July 9, 2013, United States District Court Judge Joan N. Ericksen sentenced Wesley Rayvon Johnson to 84 months in prison on one count of possessing a stolen firearm. Johnson was charged on February 21, 2013, and pleaded guilty on February 22, 2013.
In his plea agreement, Johnson admitted that on October 23, 2012, he possessed the loaded gun while walking in Minneapolis with three friends at approximately 4:10 p.m. Johnson also admitted he knew the pistol, which was tucked into his waist band, was stolen. When the four friends saw a police squad, one of them ran. When officers asked the remaining three to raise their hands into the air, Johnson admitted he didn’t raise his hands all the way in an attempt to hide the gun. In addition, Johnson admitted disobeying the officers when ordered to lie on the ground. The gun fell out of Johnson’s waist band following a struggle.
This case was the result of an investigation by the Minneapolis Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorneys Amber M. Brennan and LeeAnn K. Bell.Bristol Man Facing 10 Years in Prison on Federal Firearms ChargeRead the Press Release
PROVIDENCE, R.I. – A Bristol, R.I., man previously convicted in state court on multiple drug trafficking charges, admitted to a U.S. District Court judge in Providence today that in December 2012, he broke into a Portsmouth, R.I., home and stole more than a dozen firearms, five of which were recovered from his residence, announced United States Attorney Peter F. Neronha.
Appearing before U.S. District Court Judge John J. McConnell, Jr., David Welch, 42, pleaded guilty as charged in a federal grand jury indictment to one count of being a felon in possession of firearms. According to a binding plea agreement filed in this matter and accepted by the court, Welch faces a sentence of 10 years in federal prison when he is sentenced on October 1, 2013.
At today’s change-of-plea hearing, Welch admitted to the court that he broke into a Portsmouth home on December 22, 2012, and stole more than a dozen firearms and other items. Welch admitted that five firearms, a revolver and four semi-automatic handguns, located by law enforcement in his bedroom during a court authorized search on December 27, 2012, were among the firearms stolen from the home in Portsmouth. Welch admitted to the court that he stole the firearms for the purpose of selling some or all of them to others.
Welch admitted to the court that prior to his arrest on December 27, 2012, he sold or transferred some of the stolen firearm to others. Two of those firearms have since been recovered by law enforcement.
An indictmentis merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Welch has been detained since his arrest.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by the Portsmouth, Bristol, Newport and North Kingstown Police Departments and agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Bridgeport Man Sentenced to Seven Years in Federal Prison for Illegally Possessing FirearmsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that AARON FREELOVE, 29, of Bridgeport, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 84 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms.
According to court documents and statements made in court, on July 9, 2012, an individual purchased marijuana from FREELOVE. During the sale, FREELOVE displayed two handguns. The next day, law enforcement officers executed a search warrant at FREELOVE’s residence and recovered a Glock 10mm pistol, which was loaded with 15 rounds of ammunition and had been reported stolen, and a Ruger 9mm pistol loaded with eight rounds of ammunition. The search also revealed approximately 220 grams of marijuana.
FREELOVE has been detained since his arrest on December 18, 2012. On April 17, 2013, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
FREELOVE’s criminal history includes multiple felony convictions.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bridgeport Police Department. The case was prosecuted by Assistant United States Attorney Rahul Kale.
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Tom Carson
(203) 821-3722 [email protected]Boston Area Pimp Charged with Murdering A Rival Pimp in the Bronx in Dispute Related to Criminal Prostitution BusinessRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Raymond W. Kelly, the Police Commissioner of the City of New York (“NYPD”), announced that SAMUEL L. WHITESIDE was presented today in Manhattan federal court on charges that he traveled interstate to commit murder to further his prostitution business. WHITESIDE was arrested in Rockford, Illinois on June 14, 2013, and initially presented in the Northern District of Illinois. He arrived in the Southern District of New York yesterday and was presented today before U.S. Magistrate Judge Debra Freeman.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Samuel Whiteside traveled to New York with the cold-blooded intent to murder a rival in the unlawful prostitution business. Thanks to the efforts of our law enforcement partners, he will now face justice in the Southern District of New York.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, a business dispute between two men ended with one brutally murdering the other. Given that the business in question was the exploitation of women and trading them like livestock, it is not surprising that a dispute would be resolved by violence. While not surprising, it is intolerable.”
NYPD Commissioner Raymond W. Kelly said: “I commend the detectives of the NYPD’s Bronx Homicide squad and their counterparts in the 47th Precinct for helping return this pimp to face federal prosecution for murder.”
According to the allegations in the Complaint filed in Manhattan federal court:
During the course of the evening of June 4, 2012, and early morning hours of June 5, 2012, WHITESIDE, a Boston area pimp, had an argument over the telephone with Victor Martino (the “Victim”). The Victim, who at the time was staying at the Metro Motel in the Bronx, New York, was also a pimp, and the argument between WHITESIDE and the Victim related to their respective prostitution businesses.
Specifically, WHITESIDE and the Victim had a dispute about a woman who had worked for WHITESIDE as a prostitute. WHITESIDE believed that the Victim owed WHITESIDE money related to that woman, who had been traded and sold between WHITESIDE and the Victim. During a telephone conversation that evening, the Victim told WHITESIDE that WHITESIDE could settle the dispute in person and provided WHITESIDE with the address of the Metro Motel.
During the course of that evening, WHITESIDE traveled from New England to the Metro Motel. When he arrived, WHITESIDE went to the motel room where the Victim was staying and attacked and stabbed the Victim with a knife, killing him.
WHITESIDE, 30, of Dorchester, Massachusetts, is charged with one count of traveling interstate to commit murder to further his prostitution business. He faces a maximum sentence of life in prison.
Mr. Bharara praised the investigative work of the FBI and NYPD, and stated that the investigation is ongoing.
This case is being prosecuted by the Office’s Violent Crimes Unit. Assistant United States Attorney Kan M. Nawaday is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Samuel Whiteside Complaint
Atlanta Business Owner Sentenced for Receiving Child PornographyRead the Press Release
Defendant Possessed Thousands of Sexually Explicit Images of Children
ATLANTA –Thomas Joseph Schloeder, who was the co-owner of the Atlanta business Brushstrokes, has been sentenced for receiving thousands of images and videos of child pornography on his home computer.
“Collecting images and videos showing the sexual abuse of children is a despicable act,” said United States Attorney Sally Quillian Yates. “Our continued work to prosecute and punish individuals who possess, receive and distribute child pornography should serve notice to those who may consider engaging in this behavior that it will not be tolerated.”
“There are few crimes more heinous than the sexual abuse of a child,” said Brock D. Nicholson, special agent in charge of HSI Atlanta. “Protecting our children from those who exploit them is a top priority for HSI. We will continue to work closely with our partners at the DeKalb County Police Department to investigate these crimes and bring child predators to justice.”
According to United States Attorney Yates, the criminal indictment, and information presented in court: In November 2012, a detective with the police department of DeKalb County, Ga., conducted an investigation of individuals using peer-to-peer technology to download child pornography and make it available to others. During that investigation, he determined that a computer located at Thomas Schloeder’s home had made available over 100 images of child pornography over the preceding months. On November 15, 2012, law enforcement officers executed a search warrant at his home and seized several computers and electronic storage devices. A subsequent forensic examination of those items revealed several thousand images and videos of child pornography, some of which contained depictions of minors being raped by adults and sex acts between minors and animals.
Schloeder, 47, of Brookhaven, Ga., was sentenced today to 8 years, 1 month in federal prison by United States District Judge Orinda D. Evans to be followed by a lifetime of supervised release. He was also ordered to pay a fine of $75,000. The defendant will be required to register as a sex offender when he is released from prison.
This case was investigated by Special Agents of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the DeKalb County Police Department.
Assistant United States Attorney Jill E. Steinberg is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Armed Career Criminal Sentenced to 15 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – A Providence man arrested in November 2011 when Providence Police discovered a loaded firearm and a bag of ammunition hidden among children’s toys in a bedroom in his residence was sentenced on Tuesday to 180 months in federal prison, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr
Henry Lee, 30, was arrested by members of the Providence Police Department Narcotics and Organized Crime Bureau on November 3, 2011, during an investigation into Lee’s firearm and drug activities. According to information presented to the court, detectives executed a court authorized search of Lee’s residence and seized a loaded .380 caliber handgun and a bag of ammunition discovered hidden in a rear bedroom inside a “Girl Gourmet” cupcake mixer box which was located among several toys in the bedroom.
In addition, several plastic bags containing various amounts of crack cocaine were discovered in a bureau drawer. A bullet proof vest was discovered in a kitchen closet.
United States Attorney Peter F. Neronha commented, “The fifteen years that the defendant will serve in federal prison is a very long time. He deserves every minute. What makes this defendant’s conduct particularly dangerous, beyond his armed drug-dealing, is his possession of a bullet-proof vest, which could have only one purpose – to cause as much harm as possible to others, while remaining in relative safety.”
Providence Police Chief Colonel Hugh T. Clements, Jr., added, “Firearms and drugs continue to be a danger in our community. With this outstanding arrest and significant sentencing of an Armed Career Criminal, we are sending a clear message that criminals will be prosecuted to the fullest extent of the law. This is another example of the positive working partnership between the Providence Police Department, ATF and the U.S. Attorney’s Office.”
Lee pleaded guilty in U.S. District Court on March 27, 2013, to one count each of being a felon in possession of a firearm, being a felon in possession of body armor and possession with intent to distribute cocaine base.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Lee to serve 5 years of supervised release upon completion of his prison sentence.
Lee was convicted previously in state court on two occasions on serious drug felonies and of having committed a violent felony.
The case was prosecuted by Assistant U.S. Attorney Ly T. Chin.
The matter was investigated by the Providence Police Department with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/Contact: 401-709-5357
[email protected]Arlington Man Sentenced to More Than Three and One-Half Years for Conspiring to Fabricate False Grain Elevator Scale Tickets, Committing Bankruptcy Fraud, and Interfering with Internal Revenue LawsRead the Press Release
A north-Iowa man who conspired to fabricate grain elevator tickets, committed bankruptcy fraud, and impeded the Internal Revenue laws was sentenced on July 9, 2013, to more than three and one-half years in federal prison.
Michael Recker, age 47, from Arlington, Iowa, was convicted of one count of conspiring to fabricate false grain elevator scale tickets, one count of bankruptcy fraud, and one count of interfering with Internal Revenue laws.
At the plea hearing and in a written plea agreement, Recker admitted that in 2008 and 2009, he bribed an employee of a Northern Iowa grain elevator to create false and fictitious grain elevator scale tickets. During the conspiracy, the employee fabricated eight false grain elevator tickets, accepting thousands of dollars in bribes from Recker in exchange. The grain elevator paid Recker more than $20,000 based on the false grain elevator tickets. Recker also admitted that he had sold a combine at auction for approximately $50,000.00 prior to filing for bankruptcy protection in the United States Bankruptcy Court for the Northern District of Iowa. In bankruptcy documents, Recker did not disclose the proceeds still owed to him by the auction company and when questioned about the proceeds, Recker lied to the court, claiming he never owned the combine or had an interest in its proceeds. Finally, Recker admitted that he tried to obstruct or impede the administration of the Internal Revenue laws by trying to hide and conceal his taxable income by, among other ways, having the checks from the grain elevator fraud made payable to his then-girlfriend and passing them, and the bribes, through a bank account established in her name.
Recker was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Recker was sentenced to 46 months’ imprisonment. A special assessment of $300 was imposed, and he was ordered to make $26,267.24 in restitution to the grain company. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Recker was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
This case arose in part from work of the North Iowa Bankruptcy Fraud Task Force, which consists of the United States Attorney’s Office, the Office of the United States Bankruptcy Trustee, the Internal Revenue Service Criminal Investigation Division, and the Federal Bureau of Investigation.
The case was prosecuted by Assistant United States Attorney C.J. Williams and investigated by the Office of the United States Bankruptcy Trustee, the Internal Revenue Service Criminal Investigation Division, the United States Department of Agriculture Office of Inspector General, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-cr-2027-LRR.
Alton Man Pleads Guilty to Firearm OffenseRead the Press Release
On July 10, 2013, Robert L. Jones, a 29-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. Jones is scheduled for sentencing on October 11, 2013, at which 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. Jones agreed to forfeiture of the firearm.
Facts presented in court revealed that on September 14, 2012, a law enforcement officer in Alton, Illinois, observed individuals sitting in a parked vehicle at an apartment building close to midnight. The officer approached the vehicle, knocking on the driver’s door. As the driver opened his door, the officer spotted a clear plastic baggie containing 5.4 grams crack cocaine on the driver’s lap. A semi-automatic handgun was recovered from underneath the hood of the vehicle. The driver admitted to the firearm belonging to him. Prior to this incident, Jones had been convicted of a crime that was punishable by a term of imprisonment of more than one year.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Alton Police Department. This case is assigned to Assistant United States Attorney Daniel T. Kapsak for prosecution.
Alien, Narciso Ramos-lopez, Pleads Guilty to Illegal Use of A Social Security NumberRead the Press Release
NARCISO RAMOS-LOPEZ, age 41, a citizen of Mexico, pled guilty in federal court today before U. S. District Judge Sarah S. Vance to a one-count indictment charging him with illegal use of a Social Security number, announced U. S. Attorney Dana Boente.
According to the factual basis, on or about March 8, 2010, RAMOS, with intent to deceive and for the purpose of obtaining a Transportation Worker Identification Credential, falsely represented that a Social Security number had been assigned to him by the Commissioner of Social Security. RAMOS is unlawfully present in the United States.
RAMOS faces a maximum term of imprisonment of five years, a fine of $250,000 and three years of supervised release following any term of imprisonment. Sentencing is scheduled for October 16, 2013.
This investigation was conducted by U. S. Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE) with the assistance of the Louisiana State Police. The case is being prosecuted by Special Assistant U. S. Attorney Robert Weir.
(Download Factual Basis )
2013 School Safety ConferenceRead the Press Release
Safety in Our Schools: Education, Prevention, Management
July 16-18, 2013
Columbus Convention & Trade Center - Columbus, GeorgiaConference Agenda
Tuesday, July 16th
8:00 - 9:00 am Registration Registration Desk
9:00 - 9:30 am Welcome and Introductions Ballroom C
Michael J. Moore, United States Attorney Middle District of Georgia
Dr. Garry McGiboney, Georgia Department of Education
Director Charley English, Georgia Emergency Management Agency –
Homeland Security
9:30 - 11:15 am Terrorism: The Lone Wolf Threat Ballroom C Michael J. Moore, United States Attorney
Greg Armes, National Security Specialist
U.S. Attorney’s Office, Middle District of Georgia11:15 – 11:30 Carbon Monoxide Detection Update Ballroom C
Ted Miltiades, Director of Construction Codes & Research
Dee Leclair, Project Manager
Georgia Department of Community Affairs
11:30 – 12:30 pm Lunch (Provided) Ballrooms A & B
12:30 – 1:45 pm Breakout Sessions
The School Resource Officer’s Role Ballroom C
Karen Gray, Executive Director/Founder
Georgia Association of School Resource OfficersBus Safety Issues Foundry Room A
Garry Puetz, Director of Transportation
Forsyth County SchoolsBeslan, Russia School Terrorism Incident Foundry Room B
Greg Armes, National Security Specialist
United States Attorney’s Office, Middle District of Georgia
1:45 - 2:00 pm Break2:00 - 3:15 pm Breakout Sessions
Active Shooter Response for Law Enforcement Ballroom C
Sgt. Jon M. Posey
Georgia State Patrol
Active Shooter Response for K-12 Schools Foundry Room A
Anna Lumpkin, School Safety Coordinator
James Westbrook, School Safety Coordinator
Georgia Emergency Management Agency – Homeland SecurityPlan, Prepare, React: Foundry Room B
Active Shooter Response for Colleges/Universities
Steve Harris, Director of Security and Emergency Preparedness
The University of Georgia
3:15 - 3:30 pm Break3:30 - 4:45 pm Breakout Sessions
The School Resource Officer’s Role Ballroom C
Karen Gray, Executive Director/Founder
Georgia Association of School Resource OfficersBus Safety Issues Foundry Room A
Garry Puetz, Director of Transportation
Forsyth County SchoolsDisguised and Concealed Weapons in Schools Foundry Room B
Pete Golden, Emergency Operations Coordinator
The University of GeorgiaWednesday, July 17th
8:30 - 9:00 am Registration and Information Desk Open
9:00 - 9:30 am “Now Is the Time” Ballroom C David Esquith, Director - Office of Safe and Healthy Students
U.S. Department of Education9:30 - 11:30 am School Threat Assessments Ballroom C
ATSAIC Michael Sweazey
United States Secret Service
11:30 – 12:30 pm Lunch (provided) Ballrooms A&B
12:30 – 1:45 pm Breakout SessionsSafety and Security at Athletic Events Ballroom C
Dr. Ralph Swearngin, Executive Director
Georgia High School Athletic AssociationChild Sex Offenders Foundry Room A
SSA William Donaldson, Behavioral Analysis Unit 3
Federal Bureau of InvestigationLegal Issues in Schools Foundry Room B
Billy Mixon, Training Manager
Georgia Public Safety Training Center1:45 - 2:00 pm Break
2:00 - 3:15 pm Breakout Sessions
New Department of Education Ballroom C
Discipline Reporting System
Marilyn Watson, Program Manager
Jeff Hodges, Program Specialist
Dennis Kramer, Senior Research and Policy Analyst
Georgia Department of EducationChild Sex Offenders Foundry Room A
SSA William Donaldson, Behavioral Analysis Unit 3
Federal Bureau of InvestigationFBI Child Abduction Response Team Foundry Room B
S/A Joseph Fonseca
Federal Bureau of Investigation
3:15 - 3:30 pm Break3:30 - 4:45 pm Breakout Sessions
Safety and Security at Athletic Events Ballroom C
Dr. Ralph Swearngin, Executive Director
Georgia High School Athletic AssociationLegal Issues in Schools Foundry Room A
Billy Mixon, Training Manager
Georgia Public Safety Training CenterFBI Child Abduction Response Team Foundry Room B
S/A Joseph Fonseca
Federal Bureau of Investigation
Thursday, July 18th9:00 - 10:15 am Breakout Sessions
Understanding the Exercise Process Ballroom C
Tod Keys, Exercise Program Manager
Cory Bushway, Exercise Program Coordinator
Georgia Emergency Management Agency – Homeland SecurityDisguised and Concealed Weapons in Schools Foundry Room A
Pete Golden, Emergency Operations Coordinator
The University of GeorgiaEmergency Operation Plans for Schools Foundry Room B
Kristen Higgs, School Safety Coordinator
Danielle Graham, School Safety Coordinator
Georgia Emergency Management Agency – Homeland Security10:15 - 10:30 am Break
10:30 – 11:45 pm Understanding the Exercise Process Ballroom C
Tod Keys, Exercise Program Manager
Cory Bushway, Exercise Program Coordinator
Georgia Emergency Management Agency – Homeland SecurityBeslan, Russia School Terrorism Incident Foundry Room A
Greg Armes, National Security Specialist
United States Attorney’s Office, Middle District of Georgia
Emergency Operation Plans for Schools Foundry Room B
Kristen Higgs, School Safety Coordinator
Danielle Graham, School Safety Coordinator
Georgia Emergency Management Agency – Homeland Security
11:45 – 12:45 pm Lunch (Provided) Ballrooms A&B12:45 – 2:30 pm Newtown Massacre: Lessons Learned Ballroom C
Lt. J. Paul Vance
Commanding Officer, Public Information Office
Connecticut State Police2:30 – 3:00 pm Closing Remarks & Certificate Distribution
Additional IMPORTANT Conference Information
Breakout Sessions: Please be aware that seating in each of the rooms will be limited. If the session is already full, please attend a different session. Many breakouts will be offered twice.
Georgia P.O.S.T. Credit Hours: Law Enforcement attendees will receive 14 hours Georgia P.O.S.T. Credit. Your attendance at each session is expected in order to comply with U.S. Department of Justice expectations and sponsoring state regulations. Georgia P.O.S.T. training forms will be available in each session. You will need your Officer Key Number (OKEY #) in order to get credit for your hours.
Certified Emergency Management (CEM) Credit Hours: Anyone interested in receiving CEM credit hours can submit a copy of your certificate to GEMA training in order to obtain the hours.
Certificates of Training: Certificates will be available on Thursday afternoon.Evaluations: Please participate in critiquing this conference by completing the evaluation form attached and submitting it to us at the conclusion of the conference.
For questions and assistance, please see any of the conference planning team and staff, who will be wearing BLUE badges.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
9 July 2013
Youth Outreach Coordinator Indicted for Distribution and Possession of Child PornographyRead the Press Release
ATLANTA – Kevin Hickey, formerly the Director of Parish Outreach for Life Teen International in Atlanta, Ga., has been arraigned on federal charges of distribution and possession of child pornography.
“This defendant collected and distributed highly graphic images portraying the sexual exploitation and abuse of young children all while being entrusted to protect, counsel, and serve children,” said United States Attorney Sally Quillian Yates.
“We expect adults working in positions of trust to serve as role models for our children and safeguard their welfare,” said Brock D. Nicholson, special agent in charge for HSI Atlanta. “HSI is particularly vigorous in pursuing these kinds of cases because our experience has shown that, in many instances, those who collect and distribute child pornography are also hands-on offenders.”
According to United States Attorney Yates, the criminal complaint, and information presented in court: Hickey was identified as an individual with a sexual interest in children and who collects and distributes child pornography. In June 2013, Hickey, using his online screen name “funguyatl77,” engaged in an online communication, monitored by federal agents, in which he stated that he was watching “perving vids” and offered to share child pornography. On June 3, 2013, Hickey transmitted a video showing two prepubescent males being sodomized by an adult male. Hickey further displayed photographs of children he took surreptitiously in public places and was heard gratifying himself sexually during the online conversation. A subsequent investigation by Homeland Security Investigations agents led them to Hickey and to Hickey’s home, where he maintained his computer and engaged in the collection and distribution of these pornographic images. Thousands of images of child exploitation have been located on Hickey’s electronic devices.
Hickey, 39, of Norcross, Ga., was indicted by a federal grand jury on July 1, 2013. Hickey has been detained. Distribution of child pornography carries a mandatory minimum sentence of five years and a statutory maximum of twenty years. Possession of child pornography carries a statutory maximum sentence of ten years. A conviction on either offense carries a term of supervised release from five years to life and a requirement that the defendant register as a sex offender. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case is being investigated by Special Agents of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant United States Attorney Jill E. Steinberg is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Woman Who Allegedly Mailed Threatening Letters to U.S. Supreme Court and Throughout New Jersey Arrested on Federal ChargeRead the Press Release
NEWARK, N.J. – An Irvington, N.J., woman was arrested at her home this morning by members of the FBI Joint Terrorism Task Force (JTTF) for allegedly mailing letters threatening bodily harm to the U.S. Supreme Court and recipients throughout New Jersey, U.S. Attorney Paul J. Fishman announced.
Karen Waller, 50, is charged in a federal criminal complaint with one count of mailing threatening communications. She is expected to appear to face the charge this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
According to the criminal complaint unsealed today, Waller mailed more than 50 threatening letters in May and June 2013 to multiple entities and individuals, including a number in New Jersey. The recipients of those letters included the U.S. Supreme Court; the town hall in Woodbridge Township, N.J.; Rutgers University; an insurance company; and the Millburn Township, N.J., Police Department. The letters threatened to injure and kill unspecified individuals.
The charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents, detectives and investigators assigned to the JTTF, under the direction of FBI Special Agent in Charge Aaron T. Ford in Newark, with the investigation. The JTTF comprises law enforcement officers from numerous federal, state and local agencies throughout New Jersey.
The government is represented by Andrew Kogan, chief of the U.S. Attorney’s Office National Security Unit.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-278
Waller, Karen Complaint
Woman Pleads Guilty to Forging Her Nursing LicenseRead the Press Release
Defendant Worked as a Nurse for the U.S. Postal Service
ATLANTA - Fertina Brown, a former mail carrier, pleaded guilty to one count of making a false document by forging a license to work as a nurse with the United States Postal Service.
“Brown put people’s health and safety at risk – simply to earn a better wage,” said United States Attorney Sally Quillian Yates. “By presenting a forged nursing license, she defrauded the Postal Service and will now be held accountable for her greed.”“Fertina Brown reflects just a small percentage of employees who failed to uphold the trust and integrity placed in them. The U.S. Postal Service, Office of Inspector General takes these cases very serious and investigates them to the fullest extent of the law,” said Paul Bowman, Area Special Agent in Charge of the United States Postal Service, Office of Inspector General.
According to United States Attorney Yates, the charges and other information presented in court: In 2007, Brown was working for the United States Postal Service (USPS) as a mail carrier, when she applied for and ultimately obtained a nursing position in the Postal Service’s North Metro Distribution Center. In January 2011, the USPS requested a copy of Brown’s most recent nursing license because the previously-provided copy had an expiration date of January 31, 2011. On February 2, 2011, Brown presented the USPS with a State of Georgia nursing license that turned out to be forged. Based on an investigation, the USPS determined that Brown’s nursing register number belonged to an individual residing in Texas who was on active duty with the U.S. military. As a result of the investigation, Brown resigned from the Postal Service in June 2011. In total, Brown earned over $100,000 in additional income (versus what she would have made as a mail carrier).
On May 7, 2013, Brown, 44, of Henry County, Ga., was charged in a Criminal Information with one count of making a false document. Today she pleaded guilty to the information and could receive a maximum sentence of 5 years in prison and a fine of up to $250,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.Sentencing is scheduled for September 13, 2013, at 9:30 a.m. before United States District Judge William S. Duffey, Jr.
This case is being investigated by Agents of the United States Postal Service, Office of Inspector General.
Assistant United States Attorney Jeffrey W. Davis is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
White River Man Charged with Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that Anthony Black Wolf, age 25, of White River, South Dakota, appeared before U.S. District Judge Billy Roy Wilson on July 3, 2013, and pled guilty to Assaulting a Federal Officer. The maximum penalty upon conviction is 8 years in custody, a $250,000 fine, or both; 3 years of supervised release; and $100 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on March 3, 2013, when Black Wolf resisted arrest by striking an officer in the face and trying to remove the officer’s duty weapon from its holster.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
A presentence investigation was ordered and a sentencing date was set for September 23, 2013. The defendant was remanded to the custody of the U.S. Marshals pending sentencing.
####Wendy Silva Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on July 3, 2013, before U.S. District Judge Dana L. Christensen, WENDY SILVA, a 41-year-old resident of Missoula, was sentenced to a term of:
Probation: 3 years
Special Assessment: $100
Restitution: $6,347.14 to SSA and an amount to be determined later for
SNAP benefits.
SILVA was sentenced in connection with her guilty plea to theft of government money.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
SILVA fraudulently received Supplemental Security Income (SSI) to which she was not entitled from January 2002 until January 2012 by failing to report income from her personal business. The money she stole belonged to the United States Social Security Administration, an agency of the United States. The value of the money SILVA stole via SSI was approximately $6,347.14.
The investigation was a cooperative effort between the Social Security Administration - Office of Inspector General and the U.S. Department of Agriculture - Office of Inspector General.
Virginia Settlement Attorney Sentenced to Prison in Conspiracy to Fraudulently Obtain over $100 Million in Sba-backed LoansRead the Press Release
Attorney Used Her Law Firm and Settlement Company to Facilitate Fraudulent
Loan Closings
Baltimore, Maryland -U.S. District Judge William D. Quarles, Jr. sentenced Seung E. Oh, a/k/a Sandy Oh, age 44, of Great Falls, Virginia, today to 51 months in prison, followed by three years of supervised release, for conspiracy to commit bank fraud and money laundering, in connection with a scheme to fraudulently obtain business loans guaranteed by the Small Business Administration, with resulting losses of over $100 million. Judge Quarles also ordered that Oh pay a money judgment of $11,832,000, pay restitution of $3,593,432, and forfeit all the property involved in the offense.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to her plea agreement, Oh is an attorney with offices in Annandale, Virginia and the owner operator of Washington Settlement Group (WSG), a title company located in Annandale. In about 1998, Oh met Joon Park and his brother, Loren Park, who owned and operated Jade Capital, a loan brokerage company. Oh knew that Jade Capital specialized in securing loans for individuals interested in purchasing and refinancing small businesses in the Mid-Atlantic area, some of which were settled through Oh’s law firm and WSG. Oh knew that the Parks encouraged prospective borrowers using the services of Jade Capital to apply for business loans through the SBA’s Section 7(a) program, which guaranteed 75% - 90% of qualified loans made by banks and other commercial lending institutions. Under this program, the principals of the small business seeking the loan were required to invest a certain amount of their own money, called an equity injection, before they qualified for a loan. The banks and other lending institutions making the loan bore the risk of payment default only up to the percentage of the loan not guaranteed by the SBA.
Over the course of Oh’s relationship with Joon and Loren Park, and to foster more business with their company, Oh agreed to use her settlement company and law firm to facilitate loan closings for deals that would otherwise fail to meet the lending parameters of the banks making the loans, including banks authorized to lend under SBA’s Section 7(a) program. Oh helped the Parks misrepresent to the banks and to the SBA the true amount of money involved in the transactions and/or the true names of the parties taking part in the transactions.
To accomplish this, Oh sometimes agreed to “netting” a transaction, whereby the Parks would negotiate a sale price with the seller that was less than the price listed on the sales contract submitted to the bank, and/or they would increase the loan by the amount needed for the down payment. In so doing, they reduced the amount of money that the buyer actually had to inject into the deal and concealed that the buyer did not have sufficient equity to qualify for the loan. To conceal these arrangements, Oh completed the settlement sheets as if the buyer had made the required cash injection and the seller had received the full contract price.
Another way that Oh helped to facilitate the loan closing for Jade Capital was when she “fronted” the buyer’s cash injection. Oh temporarily loaned part of the buyer’s up-front payment by taking other people’s money out of the escrow accounts of either her law firm or her title company. Joon and Loren Park then paid back the fronted money after the settlement, usually from their share of the proceeds from that deal or a later one. As with the “netting” scheme, the settlement sheets and all other related documents for the “fronted” deal would falsely reflect that the buyer injected his own money into the transaction in accordance with the agreed upon financing terms established by the lending institution.
Joon Park, a/k/a “Joon Pak,” and “Joon Paik,” age 43, of Falls Church, Virginia, pleaded guilty and was sentenced to 188 months in prison. Judge Quarles also ordered Park to pay a money judgment of $91,449,700 and forfeit all the property involved in the offense. Nick Park, a/k/a Nochol Park, age 46, of McLean, Virginia, was sentenced to 33 months in prison; and Joo Hyuk “John” Lee, age 39, of Richmond, Virginia, and Sang Hyun Kim, age 35, of Fairfax, Virginia, were each sentenced to three years in prison, for conspiracy to commit bank fraud. Kim’s wife, In Jung Ham, age 30, also of Fairfax, was sentenced to a year and a day in prison, for her role in the scheme. Judge Quarles ordered Lee to pay restitution of $1,900,325 and ordered Ham to pay restitution of $216,472.92. Lee, Kim and Ham were also ordered to forfeit the proceeds of the scheme and pay money judgments of $18,764,900, $13,432,000 and $15,725,000, respectively.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
United States Attorney Rod J. Rosenstein thanked the SBA Office of Inspector General, U.S. Postal Inspection Service and FBI for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Leo J. Wise and Martin J. Clarke, who prosecuted the case.
U.S. Attorney's Statewide Civil Rights Symposium Set for Aug. 9, 2013 at Johnson County Community CollegeRead the Press Release
KANSAS CITY, KAN. – A Wichita historian and author of an awarding-winning book on the civil rights movement in the Midwest will be the featured speaker at the U.S. Attorney’s third annual statewide Civil Rights Symposium Aug. 9 at Johnson County Community College in Overland Park, U.S. Attorney Barry Grissom said today.
Gretchen Eick Ph.D., professor emeritus of history at Friends University, will draw upon her book, “Dissent in Wichita: The Civil Rights Movement in the Midwest, 1954-1972,” when she speaks. Through protests such as the sit-in at the Dockum Drugstore in Wichita in 1958, civil rights advocates applied pressure leading up to the landmark Civil Rights Act of 1964.
Eick will be one of several speakers during the free, day-long event focusing on federal civil rights enforcement in Kansas. Grissom said this is the third year in a row his office has sponsored the symposium.
“This event is an opportunity for us to rededicate ourselves to the continuing struggle for equal rights, equal opportunity and equal justice,” said U.S. Attorney Barry Grissom. “We are inspired by the example of those before us who spoke out despite difficulty and danger.”
The U.S. Department of Justice is responsible for upholding the civil and constitutional rights of all Americans. It enforces federal statutes prohibiting discrimination on the basis of race, color, sex, disability, religion, familial status and national origin.
Other presentations during the symposium will include a panel discussion on civil rights with panelists U.S. Attorney Barry Grissom; Gary Brunk, executive director of the ACLU of Kansas and Western Missouri, and Thomas Witt, executive director of the Kansas Equality Coalition.
The symposium is free and open to the public, but anyone who wants to attend must register. A registration form and more information will be available on the U.S. Attorney’s Web site at www.justice.gov/usao/ks
Sponsors for the event include the U.S. Attorney’s Office for the District of Kansas, the U.S. Attorney’s Office for the Western District of Missouri, the Kansas Law Enforcement Training Center, the Public Safety Training Center at Johnson County Community College and the Regional Community Policing Training Institute at Wichita State University.
For more information call Jim Cross, public information officer, at 316-269-6481.
U.S. Attorney's Office Selects Corporate Monitor for Department of Energy Prime Contractor CH2M Hill Plateau Remedition CompanyRead the Press Release
Spokane, WA – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced today the selection of Pamela M. Roberts, a former Supervisory Staff Accountant with the Securities and Exchange Commission, to serve as the Corporate Monitor of CH2M Hill Plateau Remediation Company (CHPRC). The selection was made pursuant to the March Non-Prosecution Agreement (the Agreement) between CH2M Hill Companies Ltd, (CH2M Hill) and the U.S. Attorney's Office. As the Corporate Monitor for CHPRC, Ms. Roberts will ensure that CHPRC is in compliance with the terms and conditions of the Agreement and that CHPRC is in compliance with its own policies and procedures regarding the recording and reporting of labor hours to the Department of Energy (DOE). In addition, Ms. Roberts will monitor CHPRC's compliance with its contractual and regulatory obligations to DOE including those related to CHPRC's claiming of performance based incentives under its contract with DOE.
By way of the Agreement CH2M Hill admitted that its subsidiary CH2M Hill Hanford Group Inc. had criminally conspired with its own employees to defraud the United States through massive and systemic timecard fraud. Under the Agreement, as well as a related civil settlement with the Department of Justice, CH2M Hill has paid $18.5 million in damages and penalties related to the conspiracy and corresponding false claims. Among other terms and conditions in the Agreement CH2M Hill agreed to pay for a corporate monitor for three years at CHPRC, its remaining subsidiary at the Department of Energy's Hanford Site in Southeastern Washington. The Agreement requires CH2M Hill to contribute up to $500,000 towards accountability systems to help ensure that hours charged by CHPRC to DOE are in fact actually worked. As the Corporate Monitor, Ms. Roberts will play a central role in working with CH2M Hill, DOE, and the OIG to implement this provision of the Agreement.
Michael C. Ormsby said, "We are very pleased that Ms. Roberts has agreed to be the corporate monitor at CHPRC. I am confident that she possesses the ability, experience, and drive to fulfill successful the responsibilities of the position. The United States Attorney's Office for the Eastern District of Washington is fully committed to assisting and supporting Ms. Roberts' monitoring mission, particularly in the area of labor hours and performance based incentives to which large bonuses for management are often tied. We cannot allow for another timecard fraud conspiracy to develop at Hanford. We anticipate that Ms. Roberts will work with cooperating CHPRC employees to prevent just that." Mr. Ormsby also said, "CH2M Hill has been true to its word and by all accounts has been fully complying with both the letter and spirit of the Agreement. We fully expect that they will continue their commendable assistance in the process of getting Ms. Roberts set up and supporting her efforts."
Under the Agreement Ms. Roberts will be given full access to CHPRC's records and computer network, all areas managed by CHPRC, and will have the ability to attend any meeting of CHPRC employees at any level of its corporate hierarchy. In addition, the Agreement calls for Ms. Roberts to have review and comment authority on CHPRC's policies and procedures as well as its internal audits. Ms. Roberts, though an independent monitor, will work with the Department of Energy Office of Inspector General (OIG) by, for instance, providing quarterly reports. The Agreement provides that, if CH2M Hill does not fully comply with its obligations, CHG is subject to criminal prosecution based, in part, on the official admissions of CHG that it did in fact criminally conspire with its own employees to defraud the United States.
Ms. Roberts will be the first corporate monitor ever appointed to monitor a contractor at the Hanford Site. Ms. Roberts is anticipated to officially start as the CHPRC Corporate Monitor on July 15, 2013 and will serve until March of 2016.
Two Rochester Men Indicted in Sex Trafficking CaseRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned a two count indictment charging Daniel Tanck, 31, and Robert Palermo, 29, both of Rochester, N.Y., with conspiracy to commit sex trafficking of a minor and sex trafficking of a minor. Conspiracy to commit sex trafficking of a minor carries a mandatory penalty of life in prison and a fine of $250,000. Sex trafficking of a minor carries a mandatory minimum penalty of 10 years in prison and a maximum penalty of life and a $250,000 fine.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that according to the criminal complaint, a fourteen year old victim reported that Tanck and Palermo placed an ad on Backpage.com for her to engage in prostitution activities. According to the victim, the defendants took pictures of her for the Backpage.com ad at their residence on Emerson Street in Rochester. Tanck and Palermo then posted the advertisement using Tanck’s computer. The victim alleged that both Tanck and Palermo knew that she was fourteen years of age.
The criminal complaint is the culmination of an investigation on the part of the Federal Bureau of Investigation's Cyber Crimes Task Force, which includes the Monroe County Sheriff's Office, under the direction of Sheriff Patrick O'Flynn, the Rochester Police Department under the direction of Chief James Sheppard, and Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel, and the Monroe County District Attorney's Office under the direction of Sandra Doorley.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Three Charged in Kidnapping of Mission Man Taken into MexicoRead the Press Release
McALLEN, Texas – A criminal complaint has been partially unsealed following the recent arrests of three area residents alleging their involvement in the kidnapping of a Mission resident, United States Attorney Kenneth Magidson announced today.
Roel Garza, 25, of Rio Grande City, was arrested late yesterday and is expected to make an initial appearance this morning before U.S. Magistrate Judge Peter Ormsby. Mexican citizen Orlando Hernandez, 26, and Jose Lorenzo Davila, 24, both of Rio Grande City, were arrested July 4 and 5, respectively.
The three were allegedly involved in the kidnapping of a Mission man which was carried out in retaliation for an alleged theft of more than 100 kilograms of cocaine tied to the Gulf Cartel.
On May 28, 2011, the victim and his wife drove to the residence of a family member in Mission, at which time three vehicles simultaneously arrived, one of which was a white Ford pickup. The driver, Gerardo Villarreal, 23, of Roma, identified himself as a police officer. The victim was placed in the truck and allegedly handcuffed by Davila. Believing her husband had been placed in police custody, the victim’s wife followed the truck but lost sight of it. She called local law enforcement about the “arrest,” at which time she was informed they had no record of such an arrest and he was not in their custody, according to the complaint.
The victim was allegedly struck, blindfolded, gagged and bound with duct tape thereby immobilizing his arms and legs and initially taken to a ranch in the Mission/Alton area. The complaint alleges that after the kidnapping, some or all of the defendants became aware that they had kidnapped the wrong person. However, the victim was still transported in the trunk of a vehicle from the ranch to the Rio Grande River where he was crossed into Mexico and subsequently murdered, according to allegations. The victim was a permanent resident of the U.S. with no criminal record and had no involvement in the theft or sale of cocaine. The victim has not been heard from or seen since this event.
If convicted, all face up to a life in federal prison and a possible $250,000 fine.
Villarreal previously pleaded guilty in a separate, but related, case and is pending sentencing.
The FBI is investigating the case. Assistant United States Attorney Anibal J. Alaniz is prosecuting.
A defendant is presumed innocent unless convicted through due process of law.Tax Attorney Ordered to Prison for Causing Tax Loss of More Than $2 MillionRead the Press Release
HOUSTON – Tax attorney and Certified Public Accountant (CPA) William R. Zweifel has been sentenced for his convictions on two counts of willfully aiding and assisting in the preparation and presentation of U.S. Individual Income Tax Returns that were false or fraudulent, United States Attorney Kenneth Magidson announced today along with Special Agent in Charge Lucy Cruz of Internal Revenue Service – Criminal Investigation (IRS-CI). Zweifel pleaded guilty March 8, 2013.
Today, U.S. District Judge Keith P. Ellison, who accepted the guilty plea, handed Zweifel a total sentence of 37 months and ordered him to pay a $10,000 fine and $250,000 in restitution to the IRS. Zweifel will be required to serve a one-year-term of supervised release and to perform 200 hours of community service following completion of the prison term.
At the hearing, the defense presented documents to the court showing that Zweifel had filed a motion with the Supreme Court of Texas seeking to resign as an attorney and counselor at law in Texas. Documents were also presented indicating that Zweifel had agreed with the Texas State Board of Public Accountancy to a consent order revoking his individual CPA certificate and firm CPA license in Texas.
According to the plea agreement filed in the record of the case, Zweifel acknowledged he was a tax attorney and CPA and that he prepared false income tax returns for some taxpayers that claimed large tax refunds to which the taxpayers were not entitled. The method he used to create a false income tax refund was to offset a taxpayer’s income with an alleged loss from either a partnership in which the taxpayer had no partnership interest or from an S corporation which reported no loss for the taxpayer to claim. Zweifel stipulated in the plea agreement that the tax losses to the United States from the false claims on the two income tax returns listed in the criminal information were approximately $61,000 and approximately $42,000, respectively. Zweifel further admitted that for purposes of determining relevant conduct under the U.S. Sentencing Guidelines, the tax loss to the United States in this case is approximately $2.2 million.
Zweifel has agreed to never again aid or assist in the preparing or presenting of tax returns for any taxpayer other than himself and any entity he owns. He further agreed not to oppose any civil injunction action brought by the United States seeking to enjoin him from preparing income tax returns for anyone but himself and any entity he owns.
Previously released on bond, Zweifel was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
This matter was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.
Tampa Men Plead Guilty to Armed Robberies Involving GrenadesRead the Press Release
Tampa, Florida - Acting United States Attorney A. Lee Bentley, III announces that Gabriel James Brown, Jr. (33, Tampa) pleaded guilty last week to two counts of carrying, using and brandishing a firearm in furtherance of a violent crime. Brown faces a mandatory minimum sentence of 32 years in federal prison, and a maximum of life imprisonment. Brown’s co-defendant, Robert A. McChristian (44, Tampa) pleaded guilty on June 27, 2013, to a single count of carrying, using, brandishing and discharging a firearm in furtherance of a violent crime. McChristian faces a mandatory minimum sentence of 30 years in prison and a maximum of life imprisonment.
According to the Brown’s plea agreement, from December 2012 through February 6, 2013, Brown and McChristian committed a series of armed robberies of businesses in the Tampa area. Brown was arrested on February 6, 2013. On February 5, 2013, acting along, Brown robbed a T.D. Bank in Auburndale of $19,127. He robbed the bank at gun-point and used a smoke grenade while fleeing from the bank to obscure his escape. Brown also pleaded guilty to a January 18, 2013, robbery of a Metro PCS store during which he took $631 in cash and a total of 29 cell phones and accessories valued at approximately $2,332.
According to McChristian’s plea agreement, on December 20, 2012, McChristian used a military grade flash bang grenade and a gun provided by Brown to rob a Papa John’s Pizza restaurant in Tampa. McChristian threw the flash bang grenade into the store. He then ran in and robbed the store at gunpoint of approximately $300. Prior to the restaurant robbery, Brown and McChristian arranged to meet via text message. In the text messages, McChristian arranged to meet Brown to get the gun and the flash bang grenade so that McChristian could “shake the spot myself.” McChristian was caught, in part, based on the text messages recovered by law enforcement.This case was investigated by the Federal Bureau of Investigation, the Polk County Sheriff's Office, the Auburndale Police Department, the Hillsborough County Sheriff's Office, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Mark E. Bini.
St. Louis Man Indicted on Cocaine OffenseRead the Press Release
Michael J.W. Bryant, 41, of St. Louis, Missouri, was indicted on June 18, 2013, by a federal grand jury sitting in East St. Louis, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The Grand Jury charged Bryant with Unlawful Possession with the Intent to Distribute Cocaine. The indictment was originally suppressed, but has since been unsealed. Upon conviction, the charged offense carries a possible penalty of twenty (20) years in prison, a $1,000,000 fine, at least three (3) years of supervised release, and a $100 special assessment.
Bryant was arraigned on July 9, 2013, at which time he was remanded to custody pending a Detention Hearing, which has been scheduled for July12, 2013. Bryant is currently scheduled for jury trial beginning September 9, 2013, in United States District court in East St. Louis.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
Evidence for this indictment was gathered during an investigation conducted by the Drug Enforcement Administration (DEA) and the Illinois State Police. This case has been assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Springfield Man Sentenced for Drug ConspiracyRead the Press Release
BOSTON – A Springfield man was sentenced yesterday in U.S. District Court in Springfield for dealing heroin.
Ariel Acevedo, 36, was sentenced by U.S. District Judge Michael A. Ponsor to nine years in prison, followed by four years of supervised release. In April 2013, Acevedo pleaded guilty to conspiracy to distribute heroin and possession with intent to distribute heroin.
On Feb. 18 and 19, 2012, Acevedo arranged for the sale of approximately 150 grams of heroin to another individual. During numerous conversations, which were consensually monitored and recorded by the Drug Enforcement Administration, Acevedo discussed quantities, pricing, and quality of the heroin. On Feb. 19, 2012, Acevedo met the individual on Chestnut Street in Springfield, and a few minutes later, Acevedo’s co-defendant, Jose Cruz arrived. Cruz provided the individual with a package containing 150 grams of heroin, and the individual provided Acevedo with $11,250 in cash, which Acevedo began to count. The DEA then arrested both Acevedo and Cruz. In June 2013, Judge Ponsor sentenced Cruz to five years in prison for his role in the offenses.
United States Attorney Carmen M. Ortiz; John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Mark Mastroianni, Hampden County District Attorney; and Commissioner William Fitchett of the Springfield Police Department, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.
Sixteen Charged with Federal Narcotics Distribution Offenses After Atf-led InvestigationRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kenneth J. Croke, Acting Special Agent in Charge of the ATF Boston Field Division, today announced that a federal grand jury in Hartford has returned two indictments charging 16 individuals with federal narcotics offenses related to the distribution of crack cocaine and heroin in Connecticut.
This matter stems from a joint law enforcement investigation headed by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) into a narcotics trafficking operation headed by Luther Nance, also known as “Papers” and “Cash.” The investigation, which included numerous controlled purchases of narcotics and physical surveillance, revealed that Nance and his associates allegedly sold crack cocaine and heroin in several communities throughout Connecticut utilizing multiple bases of operation, including a house on Carroll Road in East Hartford, the Sheldon Oaks housing complex in Hartford, and an apartment on Valley Street in Willimantic.
“I want to commend the excellent work of the ATF and all of our federal, state and local law enforcement partners who have participated in this successful investigation targeting drug distribution and related criminal activity in several communities across Connecticut,” stated Acting U.S. Attorney Daly. “The U.S. Attorney’s Office is committed to using the full weight of federal law to prosecute narcotics traffickers to make our communities safer.”
“ATF’s top priority is to combat violent crime and keep communities safe,” stated ATF Acting Special Agent in Charge Croke. “The charges announced today are a prime example of what happens when ATF and our law enforcement partners work together – we successfully target, disarm and remove violent criminals from the neighborhoods in which they operate.”
A 51-count superseding indictment, which was returned on June 27, charges the following 15 individuals with conspiring to distribute cocaine base (“crack cocaine”):
LUTHER NANCE, a.k.a. “Papers” and “Cash,” 27, of Willimantic and Windsor
ANTOINE ARMOUR, a.k.a. “Slim,” 22, of East Hartford
FABIAN AUGUSTINE, a.k.a. “J” and “Fabe,” 23, of East Hartford
JAMES BROWN, a.k.a. “Decky,” 23, of East Hartford
MORGAN GILL, a.k.a. “Teck,” 23, of Hartford
MICHAEL GLENN, 29, of Wethersfield
KALONI GOODLEY, a.k.a. “Scrap,” 22, of Hartford
LEESA GRANT, 21, of Hartford
ALONZO HAMILTON JR., a.k.a. “Al,” 20, of Manchester
JAHMELL HARDING, 27, of Hartford
ANTHONY HARRINGTON, a.k.a. “Tone,” 28, of Bloomfield
MONTRELL HUFF, 35, of Unionville
WANDA SOTO, 25, of Willimantic
TYKWELL WALTON, a.k.a. “Money,” 20, of Hartford
RAYSHEQUIA WELLS, 20, of East HartfordNANCE, ARMOUR, AUGUSTINE, BROWN, GILL, HAMILTON, SOTO and WALTON are charged with conspiring to distribute 280 grams or more of crack cocaine. If convicted of this charge, each defendant faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. GLENN, GOODLEY, GRANT, HARDING, HARRINGTON, HUFF and WELLS are charged with conspiring to distribute 28 grams or more of crack cocaine. If convicted of this charge, each defendant faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
Each of the defendants, with the exception of BROWN, is also charged with at least one count of possession with intent to distribute narcotics. In addition, HARDING is charged with one count of possession of a firearm in furtherance of a narcotics trafficking crime and one count of possession of an unregistered short-barrel 12-gauge shotgun.
In a separate indictment, also returned on June 27, DAVID LYN, 32, of Hartford, is charged with five counts of possession with intent to distribute, and distribution of, cocaine base.
Nance has been detained since his arrest on February 13, 2013. The other defendants have also been arrested or are currently detained in state custody.
Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, the U.S. Marshals Service, the Office of the Chief State’s Attorney, the State’s Attorney for the Judicial District of Hartford, and the Hartford, Willimantic, East Hartford, Enfield and Middletown Police Departments.
The case is being prosecuted by Assistant United States Attorneys Geoffrey M. Stone and Jonathan S. Freimann.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Sioux City Bank Robber Sentenced to Federal PrisonRead the Press Release
A man who previously had been convicted of Burglary in 2004 was sentenced July 8, 2013, to over 7 years in federal prison.
Johnnie Hawkins, age 27, from Sioux City, Iowa, received the prison term after a March 27, 2013, guilty plea to one count of bank robbery.
Evidence presented by the United States at the guilty plea and two-day sentencing revealed Hawkins had been convicted of burglary in 2004. During the fall of 2012, Hawkins was trafficking and distributing marijuana in and around Sioux City, Iowa. On or about November 8, 2012, Hawkins, knowingly obtained a Colt Defender .40 caliber, semi-automatic handgun and ammunition that he knew was stolen.
On November 10, 2012, Hawkins, robbed the Heritage Bank at 4530 Singing Hills Boulevard, in Sioux City, Iowa, of $5,954.00. Hawkins possessed and brandished the stolen and loaded handgun in furtherance of the bank robbery. Hawkins threatened and physically restrained a bank teller in furtherance of the bank robbery.Hawkins was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Hawkins was sentenced to 90 months= imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term, and he was ordered to make $5954 in restitution to Heritage Bank. There is no parole in the federal system.
Hawkins is being held in the United States Marshal=s custody until he can be transported to a federal prison.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-4116.
The case was investigated by officers of the Sioux City, Iowa, Police Department and special agents of the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Seven Arrested, Charged with Selling Illegal Drugs to Veterans Treated at VA Medical Centers in New JerseyRead the Press Release
NEWARK, N.J. – Seven men with access to two VA medical centers in New Jersey were arrested this morning by special agents of the U.S. Department of Veterans Affairs, Office of Inspector General and the FBI on federal charges alleging they sold illegal drugs to veterans being treated at the centers, U.S. Attorney Paul J. Fishman announced.
The seven defendants were each charged in separate criminal complaints with various counts of distributing controlled substances – including heroin, crack and hydromorphone – at the VA medical centers in East Orange and Lyons, N.J. Five of the men were arrested this morning at the Lyons facility, one was arrested at the East Orange facility and one was arrested at his home. All are expected to make their initial appearances this afternoon before U.S. Magistrate Judge Mark Falk in Newark federal court.
“According to our charges, these seven men abused their access to VA medical facilities to peddle dangerous drugs to other veterans undergoing treatment,” said U.S. Attorney Fishman. “It is tragic that those who have served their country would exploit their fellow veterans.”
“This investigation was initiated by VA OIG two years ago in response to the fatal heroin overdose of a veteran at the VA medical center in Lyons, New Jersey,” said Jeffrey G. Hughes, Special Agent in Charge, U.S. Veterans Affairs, Officer of Inspector General, Northeast Field Office. “Subsequently, the FBI and VA OIG jointly launched an operation which focused on combating the sale of heroin and crack cocaine to patients at Lyons. VA management at Lyons, including VA Police, provided invaluable support during the course of this investigation. We hope anyone selling drugs at VA treatment facilities will realize that we will vigorously pursue them to protect veterans seeking treatment.”
“The Federal Bureau of Investigation, Newark Division and the Department of Veterans Affairs Office of Inspector General conducted a joint investigation targeting the distribution of narcotics on the grounds of VA Hospitals in New Jersey,” said FBI Special Agent in Charge Aaron T. Ford. “As a result of this joint investigation, the FBI and VA OIG have been successful in disrupting the criminal activity occurring on the VA grounds. The Newark Division will continue to work in conjunction with our federal, state and local partners to combat the drug problem.”
The VA medical centers provide a wide range of medical and rehabilitation treatment services to veterans, including drug abuse and additional rehabilitation services, along with vocational training and other social services. According to the complaints, the defendants, each of whom is a veteran with privileged access to the buildings and grounds of the medical centers, sold controlled substances to other veterans receiving services from the centers.
Each count with which the defendants are charged carries a maximum potential penalty of 20 years in prison and a fine of $1 million, or twice the gross gain or loss from the offense. The defendants and counts with which they are charged are as follows:
Defendant
Charges
Count One – heroin distribution
Count Two – cocaine base distribution
Robin Merritt, 55, of Hackensack, N.J.
Count One - heroin distribution
Count Two - cocaine base distribution
Count Three – hydromorphone distribution
Abdul Kareem Muhammad, 50, of Boundbrook, N.J.
Count One – heroin distribution
Count Two – cocaine base distribution
Yusef Muhammad, 59, of North Plainfield, N.J.
Count One – heroin distribution
Thomas Pearson, 66, of Dover, N.J.
Count One – heroin distribution
Christopher Shalaby, 31, of Somerville, N.J.
Count One – heroin distribution
John Stuckey, 49, of Newark
Count One – heroin distribution
U.S. Attorney Fishman praised special agents of the Veterans Administration, Office of Inspector General, under the direction of Special Agent in Charge Hughes in Newark, and the FBI, under the direction of Special Agent in Charge Ford in Newark, with the investigation leading to the charges. He also thanked the VA Police for their assistance.
The government is represented by Assistant U.S. Attorney David M. Eskew of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
13-279
Johnson, Phillip Complaint
Merritt, Robin Complaint
Muhammad, Abdul Kareem Complaint
Muhammad, Yusuf Complaint
Pearson, Thomas Complaint
Shalaby, Christopher Complaint
Stuckey, John ComplaintSettlement Announced in Whistleblower Suit Against Shredding CompaniesRead the Press Release
PHILADELPHIA – A settlement agreement, resulting from a whistleblower lawsuit, was announced today between the United States and two of the country’s largest commercial shredding services companies. Shred-It Incorporated and Iron Mountain, Incorporated were named in a whistleblower lawsuit that alleged that Shred-It and Iron Mountain contracted with the government to provide shredding services but did not cut the government’s documents to the size required under the General Services Administration’s standards. Accordingly, their claims for payment for these services were false. United States Attorney Zane David Memeger announced that Iron Mountain will pay $800,000 to the government, plus attorneys’ fees; Shred-It will pay $300,000 to the government, plus attorneys’ fees.
The case was originally filed under the False Claims Act by Douglas Knisely, who operates a paper shredding business in Lock Haven, Pennsylvania. The False Claims Act permits ordinary citizens (known as “relators”) to bring lawsuits in the name of the United States alleging fraud against the government. The relator is entitled to a portion of the settlement.
Shred-It and Iron Mountain are two of the largest companies in the United States that provide commercial shredding services to the government.
This matter was handled by Assistant United States Attorney Thomas Johnson and Gregory Pearson of the Department of Justice Civil Frauds Unit.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Rosebud Woman Sentenced for Assault Resulting in Substantial Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman convicted of Assault Resulting in Substantial Bodily Injury was sentenced on July 8, 2013, by U.S. District Judge Roberto A. Lange.
Toni Good Shield, a/k/a Toni Little Thunder, age 30, was sentenced to time served of 112 days in custody, 18 months of supervised release, and $100 to the Federal Crime Victims Fund.
Good Shield was indicted by a federal grand jury on March 13, 2013, and pled guilty to the charge on April 16, 2013.
The conviction stems from an incident that took place on February 7, 2013, when Good Shield kicked the victim causing a fracture to her left leg and a bloody nose.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers. Good Shield was released.
# # #Rosebud Woman Sentenced for Assault by Striking, Beating and Wounding and Simple AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman convicted of Assault by Striking, Beating and Wounding and Simple Assault was sentenced on July 8, 2013, by U.S. Magistrate Judge Mark A. Moreno.
Kelcey Andrews, age 22, was sentenced to 18 months’ probation on each count, 400 hours of community service, and $35 to the Federal Crime Victims Fund.
Andrews was indicted by a federal grand jury on February 13, 2013, and pled guilty to the charge on May 7, 2013.
The conviction stems from an incident that took place on August 3, 2012, when Andrews reached into the front passenger window of a car in which the victim was located, punched the victim in the face and then grabbed the victim by her hair.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers. Andrews was released.
###Rockford Chiropractor Sentenced to 10 Months in Federal Prison for Federal Income Tax EvasionRead the Press Release
ROCKFORD — A Rockford, Ill. chiropractor was sentenced today by U.S. District Judge Frederick J. Kapala for federal income tax evasion. The defendant, Todd R. Cevene, 42, of Caledonia, Ill., was sentenced to 10 months in federal prison. Cevene had been charged on Dec. 14, 2012, with tax evasion by a criminal Information and pled guilty to the charge on Dec. 21, 2012. The court also ordered Cevene to serve 3 years of supervised release following imprisonment, and to pay a fine of $40,000.
According to the Information and plea agreement, Cevene owned or controlled Cevene Care Clinic, S.C., Cevene Management Group, Inc., Cevene Enterprises, LLC, and Todd Cevene Alaska Asset Preservation Trust. Cevene admitted in his plea agreement that for a four-year period between 2004 and 2007, he intentionally evaded payment of his federal income taxes by transferring substantial amounts of Cevene Care Clinic's income to Cevene Management Group, Todd Cevene Alaska Asset Preservation Trust, and Cevene Enterprises. Cevene then used a large amount of the transferred funds to pay for his personal expenses, knowing that these payments would improperly be used as business expense deductions on the federal income tax returns of the entities and that he would not claim those payments as his own personal income. Cevene admitted in his plea agreement that he also caused a large amount of the transferred funds to be transferred directly to him and that he did not include all of those distributions as income on his own personal federal income tax returns.
According to the plea agreement, Cevene admitted that by spreading the income of Cevene Care Clinic among the other entities and using those funds to pay for his personal expenses and make distributions, he intended to diminish the likelihood of discovery of his attempt to evade federal income taxes. Cevene further admitted that he frequently made more than one transfer between the entities in an attempt to avoid detection.
Cevene admitted he owed substantial amounts of income tax for calendar years 2004 through 2007 to the United States that he did not accurately report or pay. Cevene further admitted that his failure to accurately report income and expenses during those years caused a total underpayment of federal income tax of $91,568. Cevene paid these back taxes to the Internal Revenue Service prior to today’s sentencing.
The sentencing was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent-In-Charge of the Chicago Field Office of Internal Revenue Service - Criminal Investigation Division.
The government was represented by Assistant U.S. Attorney Michael D. Love.
Rock Rapids Man Sentenced to over Five Years for Distributing Child Pornography, Unlawful Possession of A Firearm, and Destroying EvidenceRead the Press Release
A man who distributed child pornography, was a drug user in possession of a firearm, and destroyed evidence was sentenced July 3, 2013, to 66 months in federal prison.
Lennon Slade, age 27, of Rock Rapids, Iowa, received the sentence after a February 14, 2013, guilty plea to one count of distribution of child pornography and one count of destruction of evidence, and a May 30, 2012, guilty plea to one count of being a drug user in possession of a firearm. At the guilty pleas, Slade admitted that he distributed child pornography, that he was a drug user in possession of a firearm, and that he destroyed evidence when officers were attempting to execute a search warrant at his house.Slade was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Slade was sentenced to 66 months’ imprisonment. A special assessment of $300 was imposed, and Slade must also serve a five-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorneys Forde Fairchild and Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Federal Bureau of Investigation, and the Lyon County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file numbers are CR 12-4080 and CR 12-4015.
Rochester Man Sentenced for Stealing Interstate Shipment from RailcarRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Timothy M. Stone, 34, of Rochester, N.Y., who was convicted of conspiracy to commit burglary of a railcar, burglary of a railcar, and theft of an interstate shipment following a jury trial, was sentenced to 12 months and ordered to pay $3,069.28 in restitution by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that on June 30, 2009, Stone, along with co-conspirators Richard E. Riedman, Anthony Russell and Anthony Toscano, stole more than 17 gross tons of a high-grade scrap steel from a railcar at a CSXT rail yard in Batavia, N.Y. Stone and his co-conspirators used a logging truck to remove the scrap steel from the railcar, wore dark clothing and used lookouts to avoid detection by law enforcement authorities and pedestrians, and used two-way radios to communicate with each other during the theft.
Stone and his co-conspirators were apprehended by members of the Genesee County Sheriff's Office in the logging truck and a pick-up truck as they left the scene of the theft in the early morning hours of June 30, 2009. The bales were in the process of being shipped to a steel mill in Pennsylvania when Stone and the other defendants stole them. Stone, Riedman, Russell, and Toscano were convicted after a two-week jury trial before Judge Siragusa in September 2012.
Toscano was sentenced to 18 months in prison. Russell will be sentenced on August 16, 2013 and Riedman on September 16, 2013.
The conviction was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel, and the Genesee County Sheriff's Office, under the direction of Gary Maha.Rochester Man Sentenced for Role in Jail EscapeRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Eddie R. Palmer, 37, of Rochester, N.Y., who was convicted of aiding escape, was sentenced to time served (approximately 15 months) by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Jennifer M. Noto, who handled the case, stated that the defendant Palmer and Joseph Mitchell escaped from the Monroe County Jail on March 31, 2011. Palmer served as a "look-out" to warn if guards were approaching while Mitchell sawed the bars on windows inside the jail. The defendant also helped Mitchell break the outside jail window through which the two ultimately escaped. Palmer and Mitchell were then picked up by Lakesia Binion and transported to an area near Sodus, N.Y. where Mathias Smith helped them hide. The two defendants were apprehended approximately a week later on April 8, 2011, inside a camping trailer located on a residential property.
Palmer is the last defendant to be sentenced in this case. Mitchell was sentenced to 25 years in prison for his role in the escape and drug trafficking conspiracy. Binion was sentenced to three years of supervised release for her role in the escape and Smith received a sentence of two years probation.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, officers of the Rochester Police Department, under the direction of Chief James Sheppard, the U.S. Marshals Service, under the direction of Marshal Charles Salina and investigators of the Monroe County Sheriff's Office, under the direction of Sheriff Patrick O'Flynn.Rexford Woman Sentenced to Five Years Probation for Harboring an Illegal AlienRead the Press Release
Albany, New York — Annie George, a/k/a Annie Kolath, a/k/a Sajimol George, age 41, of Rexford, New York, was sentenced today by Chief United States District Court Judge Gary L. Sharpe to five years of probation for harboring an illegal alien, announced United States Attorney Richard S. Hartunian and Matthew Scarpino, Resident Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations. George, who was found guilty on March 8, 2013 of one count of harboring an illegal alien following a five-day jury trial, was also sentenced to eight months of home detention.
Between about November 2005 and May 3, 2011, George harbored an illegal alien from India in her homes in Catskill, Menands, and Rexford, New York. During the course of the harboring, the illegal alien performed household chores for George and cared for George’s children.
This case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations.
LOCAL CONTACT: Rick Belliss
Assistant U.S. Attorney
Tel: (518) 431-0247