Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 23 May 2013
St. Francis Man Charged with Aggravated Sexual Abuse of A Child, Aggravated Sexual Contact with A Child, and Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a St. Francis, South Dakota man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child, Aggravated Sexual Contact with a Child, and Abusive Sexual Contact.
Vernon Blackhorse, age 63, was indicted by a federal grand jury on May 15, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 20, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to life in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Blackhorse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Blackhorse was remanded to the custody of the U.S. Marshal pending trial. A trial date has not been set.
Serial Bank Robber Sentenced to 45 Years in Federal PrisonRead the Press Release
Quentin A. Sherer, 33, a resident of Toledo, Ohio, was sentenced on Tuesday to 45 years in federal prison after having been found guilty by a jury of bank robbery and brandishing a firearm during that bank robbery, announced United States Attorney Barbara L. McQuade. McQuade was joined in the announcement by Robert D. Foley, III, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Sherer and Martin L. Tucker, 33, were found guilty after a week-long trial before the Honorable Judge Robert H. Cleland in U.S. District Court in Detroit in December 2012.
The evidence presented during the trial showed that on July 16, 2009, Sherer and Tucker, armed with semi-automatic pistols, entered the Monroe County Community Credit Union in Temperance, Michigan, and ran to the teller counter. Sherer pointed the gun at one teller and demanded money. Tucker ran to another teller window, pushed a customer out of the way, pointed the gun at the customer and teller and demanded money. Both Sherer and Tucker wore masks and hooded sweatshirts. After taking money, both ran out of the credit union into an awaiting getaway car. A customer at the drive through window followed the getaway car a couple miles away into Toledo, where the robbers abandoned the car in the driveway of a private residence. When officers from the Monroe County Sheriff’s Office responded to that residence, they retrieved several items of clothing that were worn during the robbery along the path where Sherer and Tucker had fled. The FBI Laboratory in Quantico, Virginia conducted a DNA examination of the evidence recovered in and around the getaway car and found matches between the DNA extracted from several pieces of the evidence and Sherer and Tucker’s DNA.
This conviction was Sherer’s third federal conviction for bank robbery and second federal conviction for using a firearm during a crime of violence. Sherer committed this bank robbery less than 8 months after being released from prison for his previous bank robbery convictions.
Sentencing of Tucker is scheduled for August 27, 2013.
“Criminals who use guns to commit violent crimes are not welcome in our community, and we hope that strong sentences like this one will deter these kinds of crimes,” McQuade said.
FBI Special Agent in Charge Foley stated, “"Those who engage in violent crime and other illegal activity pose a serious threat to the safety of citizens. The FBI is committed to stopping these dangerous acts and protecting our communities."
The case was investigated by the Federal Bureau of Investigation and the Monroe County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Patrick Hurford and Frances Carlson.
Sentences for May 22 - 23, 2013Read the Press Release
Moises Robles-Alonso, 28, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on May 23, 2013, for illegal re-entry of a previously deported alien into the United States. Robles-Alonso was arrested in Jackson, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Bertin Cruz-Hernandez, 28, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 23, 2013, for illegal re-entry of a previously deported alien into the United States. Cruz-Hernandez was arrested in Cheyenne, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Eloy Garcia-Perez, 28, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 23, 2013, for illegal re-entry of a previously deported alien into the United States. Garcia-Perez was arrested in Jackson, Wyoming. He received eight months of imprisonment, to be followed by three years of supervised release, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Ivan Olivas-Ontiveros, 33, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 23, 2013, for illegal re-entry of a previously deported alien into the United States. Olivas-Ontiveros was arrested in Rock Springs, Wyoming. He received twelve months of imprisonment, to be followed by three years of supervised release, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This casewas investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Jaime Garcia-Suarez, 37, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 23, 2013, for illegal re-entry of a previously deported alien into the United States. Garcia-Suarez was arrested in Laramie, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Leslie Diane Zynda, 39, of Marion, Iowa, was sentenced by Federal District Court Judge Alan B. Johnson on May 22, 2013, for tax evasion. Zynda self-surrendered in Cheyenne, Wyoming. She received 24 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. In addition, Zynda was ordered to pay restitution to the Town of Guernsey in the amount of $276,706.00 and to the Internal Revenue Service in the amount of $75,089.20. This case was investigated by the Internal Revenue Service.
Saratoga Springs Man Charged with Failing to Update Sex Offender Registration InformationRead the Press Release
Albany, New York —United States Attorney Richard S. Hartunian and David McNulty, U.S. Marshal for the Northern District of New York, announce the filing of a criminal Complaint charging EUGENE PERIARD, age 33, of Saratoga Springs, New York, with failing to update his sex offender registration information.1 The Complaint charges that on or about April 30, 2013, PERIARD failed to update his sex offender registration information by advising authorities that he had moved from Elk City, Oklahoma to Saratoga Springs, New York. If found guilty of the charge in the Complaint, the defendant faces a statutory maximum sentence of ten years imprisonment and a maximum fine of $250,000.00.
PERIARD had his initial appearance in Albany on May 23, 2013 before the Honorable Christian F. Hummel, United States Magistrate Judge. PERIARD was detained pending his next court appearance.
This case was investigated by the U.S. Marshals Service and the Saratoga Springs Police Department. This case is being prosecuted by Assistant United States Attorney Rick Belliss.
LOCAL CONTACT:
Rick Belliss
Assistant U.S. Attorney
Tel: (518) 431-0247_______________________
1The charge is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Sales Manager of Buy-A-Home Real Estate Brokerage Sentenced in Manhattan Federal Court to 24 Months in Prison for Participating in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ERIN DAVIS, former sales manager for the now defunct Buy-A-Home real estate brokerage business, was sentenced today in Manhattan federal court to 24 months in prison for participating in a multi-million dollar mortgage fraud scheme. DAVIS and Buy-A-Home’s owner, Mitchell Cohen, were indicted in July 2012. DAVIS pled guilty in January 2013 to one count of conspiracy to commit mail, wire and bank fraud, and was sentenced today before U.S. District Judge Denise L. Cote.
Manhattan U.S. Attorney Preet Bharara stated: “At the ground level of the mortgage crisis were people like Erin Davis, a top manager at Buy-A-Home, who orchestrated falsehoods and moved money around to generate millions of dollars of fraudulently obtained mortgages. This Office remains committed to using every legal means available to hold to account those who helped contribute to the home mortgage crisis and to FHA’s dire financial straits.”
According to the Indictment and statements made during court proceedings:
From 2007 through 2010, the U.S. Department of Housing and Urban Development’s Federal Housing Administration (“HUD-FHA”) provided mortgage insurance to borrowers seeking residential mortgages. Unlike conventional loans, FHA-insured loans required little cash investment from borrowers and were more flexible in income and payment ratio requirements. To qualify for FHA mortgage insurance, a potential borrower had to meet HUD requirements regarding his or her creditworthiness and ability to make mortgage payments. No undisclosed payments could be made or promised in connection with a residential mortgage transaction. Additionally, certain private lenders were authorized to make commitments for the provision of FHA mortgage insurance on behalf of HUD. They did so through the execution and ultimate submission to HUD of various mortgage documents, forms, and supporting documentation. Because FHA-backed mortgages were valuable commodities, lenders typically sold them to banks that pooled them and then resold them to institutional investors.
From April 2007 through October 2010, DAVIS was a sales manager for a real estate brokerage business in Queens, New York known, at various times, as Buy-a-Home, LLC and First Home Brokerage, LLC (“Buy-a-Home”). During that time period, DAVIS and Cohen engaged in a widespread conspiracy to defraud HUD into issuing FHA mortgage insurance and to defraud banks into purchasing the FHA-backed mortgages issued to Buy-a-Home’s clients in order to earn substantial profits. DAVIS, Cohen and others at Buy-a-Home recruited unsophisticated buyers of modest means and induced them into purchasing the same homes at inflated prices. To insure that the deals for these properties would go through, DAVIS, Cohen and others schemed to make the Buy-a-Home clients – who did not and could not qualify to receive FHA mortgage insurance – seem more creditworthy.
In furtherance of this scheme, DAVIS directed Buy-a-Home employees to pay off borrowers’ debts, often with cash funneled through bank accounts of borrowers’ relatives, in order to make the borrowers appear more creditworthy and to make it seem that their debts had been paid by an appropriate source; directed Buy-a-Home employees to provide cash to borrowers so that they could obtain certified checks falsely showing that they had sufficient funds to close; prepared false gift affidavits to make it seem that the borrowers’ debts had lawfully been paid off, or that the borrowers’ funds for closing had been appropriately provided by relatives, when in fact they had unlawfully paid off the debts themselves or through Buy-a-Home; and advised borrowers to make other false statements on loan applications submitted to HUD. In so doing, DAVIS concealed the borrowers’ true financial condition from HUD and the banks that subsequently bought the FHA-backed mortgages, all in an effort to insure that they and Buy-a-Home could profit from the deals.
Through this scheme, DAVIS, Cohen and others defrauded HUD into issuing, and banks into purchasing, over $7.5 million dollars in fraudulent loans. Furthermore, because the FHA insurance was based on false statements made to HUD, and the borrowers could not really afford their mortgages, many of the homes went into foreclosure proceedings, forcing HUD to pay out over $1.5 million in insurance payments.
In addition to the prison term, Judge Cote sentenced DAVIS, 44, of Yonkers, New York, to three years of supervised release. DAVIS was also ordered to forfeit $2,416,597, and to pay $117,992.19 in restitution to HUD-FHA. She will surrender on July 5, 2013, at 2 p.m.
On April 26, 2013, Judge Cote sentenced DAVIS’s co-defendant, Mitchell Cohen, to 70 months in prison. Cohen was also ordered to forfeit $7,515,966, and to pay $1,574,259.43 in restitution to HUD-FHA. He will surrender on June 28, 2013, at 2:00 p.m. COHEN also settled a related civil case. The civil judgment against Cohen consists of $2.2 million in damages and $500,000 in penalties, and is the fifth and final settlement in the civil action. In four prior settlements entered in 2011 and 2012, the Government recovered $1.55 million in damages and penalties from the lender and the appraisers. The lender, the lender’s principals and key employees, and the appraisers all agreed to be barred from all HUD programs either permanently or for a term of up to 10 years.
Mr. Bharara praised HUD-OIG and FHFA-OIG for their outstanding work in the investigation.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This matter is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Janis Echenberg and Nicole Friedlander are in charge of the case.
Rosebud Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Dwight Black Spotted Horse, age 28, was indicted by a federal grand jury on May 15, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 20, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is up to 10 years’ in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Black Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshal Service. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Black Spotted Horse was remanded to the custody of the U.S. Marshal pending trial. A trial date has not been set.
Rochester Man Charged with Attempted Online Enticement of A Minor, Attempted Production of Child Pornography, and Transportation of Child PornographyRead the Press Release
Defendant Alleged to Have Communicated Online with an Undercover Investigator Posing as a
Twelve Year Old Girl in Order to Send Her Images of Child Pornography and to Arrange a
Meeting in a Syracuse Hotel Where Sexual Acts Would be FilmedAlbany, New York —United States Attorney Richard S. Hartunian and Joseph D’Amico, Superintendent of New York State Police, announce the filing of a three-count criminal Complaint charging JASON FRANK, age 27, of Rochester, New York, with the attempted online enticement of a minor, the attempted production of child pornography, and the transportation of child pornography. 1 According to the Complaint, between about February 2013 and April 2013, FRANK engaged in online chats with an undercover New York State Police investigator posing as a twelve year old girl. FRANK’s online chats urged the twelve year old girl to meet him for an encounter in which FRANK would perform oral sex on the girl and then have sexual intercourse with the girl. On or about April 9, 2013, FRANK attempted to produce images of child pornography when he showed up at a Syracuse hotel in possession of a digital camera, expecting to meet the twelve year old girl for purposes of a sexual encounter that would be filmed. Finally, between about February 2013 and April 2013 FRANK transported files of child pornography to the undercover investigator by sending the undercover investigator multiple still image files of child pornography via the Internet.
If found guilty of attempted online enticement of a minor, the defendant faces a statutory minium of at least ten years imprisonment and up to a maximum sentence of life imprisonment, and a maximum fine of $250,000.00. If found guilty of attempted production of child pornography, the defendant faces a statutory minium of at least fifteen years imprisonment and up to a maximum sentence of thirty years imprisonment, and a maximum fine of $250,000.00. If found guilty of transporting child pornography, the defendant faces a statutory minimum of at least five years imprisonment and up to a maximum sentence of twenty years imprisonment, and a maximum fine of $250,000.00.
FRANK had his initial appearance in Albany on May 23, 2013 before the Honorable Christian F. Hummel, United States Magistrate Judge. FRANK was detained pending his next court apperance.
This case was investigated by the New York State Police .This case is being prosecuted by Assistant United States Attorney Rick Belliss.
LOCAL CONTACT:
Rick Belliss
Assistant U.S. Attorney
Tel: (518) 431-0247_____________________________
1The charges are merely accusations and the defendant is presumed innocent until and unless proven guilty.
Recidivist Sentenced to 188 Months for Bank RobberyRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today ERNEST RICHARD MICHAELSON, 58, of Bridgeport, Connecticut, was sentenced by United States District Judge Terrence W. Boyle to 188 months imprisonment for Bank Robbery, in violation of Title 18, United States Code, Section 2113(a), three years of supervised release, restitution of $6530.00 and a $100 special assessment.
On February 5, 2013 MICHAELSON pled guilty to robbing Capital Bank in Fayetteville, North Carolina on April 20, 2012. MICHAELSON handed a teller a note that read, “I want 550 million dollars now thank you.” MICHAELSON then told the teller, “I have a gun in my back pocket. I ain’t scared to die.” The teller did not see a gun but complied and handed MICHAELSON $6,530 who stuffed it in his shirt and fled the bank.
At the time of the April, 2012, offense, MICHAELSON had absconded parole in Bridgeport, Connecticut following his three prior 2000 Connecticut convictions for bank robbery.
Investigation of this case was conducted by the Federal Bureau of Investigation and the Fayetteville Police Department. Assistant United States Attorney Thomas B. Murphy prosecuted the case.
President of San Francisco Based DAJA International Pleads Guilty to Making False Statements in A Loan ApplicationRead the Press Release
SAN FRANCISCO - Jacqueline Besser pleaded guilty, yesterday, to making false statements in a loan application, United States Attorney Melinda Haag announced.
In pleading guilty, Besser admitted that in October 2010, as the president of DAJA International, LLC (“DAJA”), she applied to Community Bank of the Bay (“CBB”) for a loan and a line of credit for DAJA. Besser was to be the guarantor of that loan and line of credit.
According to her plea agreement, Besser admitted that as part of the application process, she submitted various documents to CBB between approximately June 20, 2010, and approximately September 30, 2010 that included false statements. The documents included personal financial statements, a Small Business Administration application, a business debt schedule, and corporate financial statements. These documents required Besser to list, among other things, all of the outstanding loans, liens, and any other money owed by her, and all of the outstanding loans, liens, and any other money owed by DAJA. When she submitted these documents, however, Besser intentionally failed to report approximately $500,000 in outstanding loans to her company, DAJA, and to her, either individually or jointly with her husband.
Based on the documentation Besser provided, CBB approved the loan and extended a $1.75 million term loan and a $100,000 line of credit to DAJA.
In November 2011, DAJA filed for bankruptcy, and in December 2011, Besser filed for bankruptcy. At the time of these bankruptcy filings, DAJA owed approximately $1.7 million in principal, interest, and late charges on the CBB note, and approximately $114,109 in principal, interest, and late charges on the CBB line of credit.
Besser, 60, of San Francisco, pleaded guilty to one count of making a false statement to a bank in violation of Title 18 United States Code, Section 1014.
The sentencing of Besser is scheduled for September 3, 2013, before The Honorable William Alsup U.S. District Court Judge. The maximum statutory penalty for a violation of Title 18 United States Code, Section 1014, is 30 years in prison and a fine of $1 million or twice the gross gain or loss, whichever is greater, plus restitution. However, any sentence would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Jonathan Schmidt and Benjamin Kingsley are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Marina Ponomarchuk, Rayneisha Booth, and Colleen Cushnie. The prosecution is the result of a one-year investigation by the Small Business Administration, Office of Inspector General.
President of Investment Fund Sentenced in Manhattan Federal Court to 30 Months in Prison for $2 Million Ponzi SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ANAND SEKARAN, the President and Director of Wasson Capital Ltd. (“Wasson”), an investment fund, was sentenced today in Manhattan federal court to 30 months for engaging in a $2.3 million scheme to defraud Wasson’s investors. SEKARAN misled Wasson investors concerning the fund’s value, distributed funds to investors that were contributed from other investors, and issued fraudulent account and fund performance statements. He pled guilty in November 2012, and was sentenced today by U.S. District Judge Robert P. Patterson.
Manhattan U.S. Attorney Preet Bharara said: “Anand Sekaran spun a web of lies and engineered a Peter-to-pay-Paul scheme all designed to deceive existing investors, lure new investors and cover-up his market losses while he benefited financially. Sekaran left many of his investors to suffer dire financial consequences, and now it is Sekaran who will suffer the consequences of his actions.”
According to the Information and statements made during the guilty plea and other court proceedings:
In 1997, SEKARAN formed Wasson as an asset management firm in New York, New York, that would invest client money primarily in the U.S. options market, and he solicited investors from 1999 through 2010. As a result of both the substantial losses Wasson incurred and several redemption requests, SEKARAN defrauded investors, by diverting their funds, and perpetrating a “Ponzi” scheme using two different methods, from 2009 through June 2011.
First, SEKARAN misrepresented Wasson’s investment value and past performance, the ways investor funds were being used to existing and potential investors, and the source of funds distributed to investors who had requested redemptions. Specifically, he misrepresented that Wasson was stable and doing well so that he could secure additional contributions. Further, in response to certain investor redemption requests, SEKARAN used money from other investors to pay off the redeeming investors.
Second, SEKARAN distributed fraudulent statements to investors in order to forestall redemption requests, induce new investors to contribute to Wasson, and induce existing investors to provide additional contributions. For example, he caused misleading and fabricated account statements to be sent to several Wasson investors that falsely inflated the value of their investments. SEKARAN also created and distributed fraudulent performance statements purporting to show that the Wasson fund was performing well, when in fact, it was suffering losses.
In the course of his scheme, SEKARAN misappropriated approximately $500,000 of investor funds. Further, more than 10 investors lost a total of approximately $2 million.
In addition to the prison term, Judge Patterson sentenced SEKARAN, 44, of Miami, Florida, to three years of supervised release. SEKARAN was also ordered to pay $2.3 million in forfeiture, to make restitution in the amount of $2,264,998.12, and to pay a $200 special assessment fee.
Mr. Bharara praised the investigative work of the Criminal Investigators of the United States Attorney’s Office and the U.S. Postal Inspection Service, which jointly investigated this case. He also thanked the Securities and Exchange Commission for its assistance.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney David I. Miller is in charge of the prosecution.
Philadelphia Man Pleads Guilty to Tax Fraud SchemeRead the Press Release
Colin Williams, 32, of Philadelphia, pleaded guilty today to his role in a tax fraud scheme that fraudulently sought refunds in the amount of approximately $868,907. Williams was charged with conspiracy and fraud in connection with the same tax refund scheme that is alleged in an indictment against Benjamin Johnson, 48, of Philadelphia. Williams and Johnson operated Marshall Street Financial Services (“MSFS”), a tax preparation services business located at 974 N. Marshall Street in Philadelphia. Johnson will be arraigned Friday.
The Indictment alleges that between December 2008 and April 2009, Johnson and Williams conspired to obtain identification and dependent information to MSFS customers which would enable the customers to obtain what was said to be government refunds or “stimulus payments.” Along with Williams, Johnson allegedly solicited customers who were typically unemployed or low-income earners, sometimes supported primarily by public assistance, to provide their personal identification information, including their dates of birth, Social Security number information, and such information belonging to the customers’ dependents. After obtaining the customer’s personal identification and income information, Williams allegedly sought tax refunds by preparing false federal income tax returns and schedules which contained inflated and false income and Earned Income Tax Credit information.
After early February 2009, Johnson allegedly arranged for the IRS tax refunds to be electronically transferred into his and Williams’ own bank accounts instead of the accounts of MSFS customer/taxpayers, thereby enabling Johnson and Williams to receive the customers’ refunds themselves. The defendants allegedly distributed only a portion of the remittance to the customer. It is further alleged that Johnson caused the filing of tax returns for himself and in the name of an individual, known to the grand jury, unlawfully identifying children who were the dependents of another MSFS employee and of MSFS customers. Between January 2009 and April 2009, Johnson and Williams allegedly sought refunds, by falsifying returns, in the amount of approximately $868,907.
At sentencing on September 11, 2013, Williams faces a maximum possible sentence of 15 years in prison, three years of supervised release, a fine of up to $500,000, and a $200 special assessment. If convicted of all charges, Johnson faces a maximum possible sentence of 50 years in prison, three years of supervised release, a fine of up to $2.25 million, and a $900 special assessment. Upon conviction, both defendants may be ordered to pay restitution to the IRS.The case was investigated by the Internal Revenue Service Criminal Investigations and is being prosecuted by Assistant United States Attorney James R. Pavlock.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Owner of Investment Company Pleads Guilty to Engaging in a Fradulent Investment SchemeRead the Press Release
The owner of an investment company pleaded guilty today for his role in an investment scheme involving false promises, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Virginia Neil H. MacBride, and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office.
David Eugene Howard II, 34, of Queens Village, N.Y., pleaded guilty before U.S. District Judge T. S. Ellis III in the Eastern District of Virginia to one count of mail fraud.
According to the plea documents, from in or about March 2008 through in or about April 2009, Howard falsely represented to investors that his company, Flatiron Systems LLC, traded pooled equity accounts using a proprietary trading system called “Pathfinder.” Through distributing false and misleading letters, operating agreements, account statements and other materials, he caused investors to send investments of at least $5,000, which were deposited into an account that he exclusively controlled and which he later misappropriated for his own benefit and the benefit of others.
Over the course of his scheme, Howard directly misappropriated approximately $373,000 of $1.8 million in investor funds. Howard’s misappropriation included approximately $86,000 in transfers to his personal bank account, cash withdrawals and personal expenditures made with his company debit card, to include approximately $34,500 in charges at a night club and approximately $3,600 in charges towards the purchase of a Tiffany necklace for Howard’s girlfriend at the time.
According to court documents, in December 2008, Howard falsely informed investors that trading had been voluntarily halted so that an independent audit could be performed. Nonetheless, Howard continued to transfer approximately $26,500 in investor funds to his personal bank account, along with additional cash withdrawals and personal expenditures over the course of the following four months. Howard followed up with another letter which falsely advised investors of prolonged audit and tax procedures, which his nonexistent attorneys and accountants were purportedly diligently working on.
At sentencing, Howard faces a maximum penalty of 20 years in prison, a fine of $250,000 or twice the gross gain or loss, and full restitution. Sentencing is scheduled for Sept. 20, 2013.
In a related action, the U.S. Securities and Exchange Commission (SEC) filed a civil enforcement action against Howard on March 21, 2011.
This prosecution is the result of an investigation by the FBI’s Washington Field Office, along with a parallel investigation by the SEC. The case is being prosecuted by Trial Attorneys Mark Grider, N. Nathan Dimock, and Luke B. Marsh of the Justice Department Criminal Division’s Fraud Section, and by Assistant U.S. Attorney Kosta S. Stojilkovic of the Eastern District of Virginia.
Owner of Investment Company Pleads Guilty to Engaging in A Fradulent Investment SchemeRead the Press Release
ALEXANDRIA, Va. – The owner of an investment company pleaded guilty today for his role in an investment scheme involving false promises, announced U.S. Attorney for the Eastern District of Virginia Neil H. MacBride and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
David Eugene Howard II, 33, of Queens Village, N.Y., pleaded guilty before U.S. District Judge T. S. Ellis III in the Eastern District of Virginia to one count of mail fraud.
According to the plea documents, from in or about March 2008 through in or about April 2009, Howard falsely represented to investors that his company, Flatiron Systems, LLC, traded pooled equity accounts using a proprietary trading system called “Pathfinder.” Through distributing false and misleading letters, operating agreements, account statements, and other materials, he caused investors to send investments of at least $5,000, which were deposited into an account that he exclusively controlled and which he later misappropriated for his own benefit and the benefit of others.
Over the course of his scheme, Howard directly misappropriated approximately $373,000 of $1.8 million in investor funds. Howard’s misappropriation included approximately $86,000 in transfers to his personal bank account, cash withdrawals, and personal expenditures made with his company debit card, to include approximately $34,500 in charges at a night club and approximately $3,600 in charges towards the purchase of a Tiffany necklace for Howard’s girlfriend at the time.
According to court documents, in December 2008, Howard falsely informed investors that trading had been voluntarily halted so that an independent audit could be performed. Nonetheless, Howard continued to transfer approximately $26,500 in investor funds to his personal bank account, along with additional cash withdrawals and personal expenditures over the course of the following four months. Howard followed up with another letter which falsely advised investors of prolonged audit and tax procedures, which his nonexistent attorneys and accountants were purportedly diligently working on.
At sentencing, Howard faces a maximum penalty of 20 years in prison, a fine of $250,000 or twice the gross gain or loss, and full restitution. Sentencing is scheduled for Sept. 20, 2013.
In a related action, the U.S. Securities and Exchange Commission (SEC) filed a civil enforcement action against Howard on March 21, 2011.
This prosecution is the result of an investigation by the FBI’s Washington Field Office, along with a parallel investigation by the SEC. The case is being prosecuted by Trial Attorneys Mark Grider, N. Nathan Dimock, and Luke B. Marsh of the Justice Department Criminal Division’s Fraud Section, and by Assistant U.S. Attorney Kosta S. Stojilkovic of the Eastern District of Virginia.Operators of Foreclosure Rescue Scam SentencedRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Adam P. Moellers, 35, of Mason, Ohio was sentenced to 36 months in prison and Gary P. Dailey, aka Gary Klump, 33, of Covington, Kentucky was sentenced to 21 months in prison in U.S. District Court today for engaging in a foreclosure rescue scheme through a company called American Equity Group (AEG). A third defendant, Perry Bensick, 37, of Monroe, Ohio was sentenced on May 21 for his role in the scheme to a year and a day in prison. Each will be placed under court supervision for three years after their prison terms end.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division (FBI) announced the sentences imposed by U.S. District Judge Michael Barrett.
AEG approached homeowners in financial distress with promises to find a buyer for their property who would let them stay there as renters until they were ready to buy it back. AEG convinced individuals to become investors by promising them they could buy a property with no money down, collect rent for a year or two then sell it back to the renter for a profit. AEG inflated the sale price, put together fraudulent loan applications, and took out extra cash at closing. The renters never purchased the properties back and the investors couldn’t afford to keep them.
“As a result, the properties went into foreclosure with even larger loan balances and with investors/borrowers who did not appreciate the risk that they had undertaken,” Assistant U.S. Attorney Timothy Mangan wrote in a court filing before Dailey’s sentencing.
The FBI calculated that in 2006 and 2007, the scheme caused losses of $6,849,460 to lenders. The defendants will be ordered to pay restitution in an amount to be determined by the court.
“The lenders were not the only victims,” Assistant U.S. Attorney Mangan told the court. “For the investors, they typically ended in bankruptcy or with ruined credit in exchange for a rescue plan by AEG that was doomed to fail.”
Moellers pleaded guilty on August 9, 2012 to one count of conspiracy. Dailey pleaded guilty on June 4, 2012 to one count of wire fraud. Besnick pleaded guilty on August 6, 2012 to one count of conspiracy.
U.S. Attorney Stewart commended the investigation by the FBI and Assistant U.S. Attorney Mangan, who represented the United States in the case.Norwalk Man Sentenced to 57 Months in Federal Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that LEROY PRESSLEY, 25, of Norwalk, was sentenced today by Senior United States District Judge Ellen Bree Burns in New Haven to 57 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, on August 18, 2010, PRESSLEY was arrested by the Norwalk Police Department in the Roodner Court housing complex after he was found in possession of a loaded .38 caliber revolver, approximately 28 grams of crack cocaine and a quantity of heroin.
PRESSLEY was previously convicted of second degree assault in 2004 and sale of narcotics in 2005. The assault stemmed from an incident in which PRESSLEY shot another individual in the leg.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
PRESSLEY, who was on state probation at the time of this offense, has been detained in federal custody since September 9, 2010. On September 25, 2012, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
While incarcerated in state and federal custody, PRESSLEY has received numerous disciplinary tickets for fighting and committing assaults. In October 2011, PRESSLEY and another individual violently assaulted another inmate at the Donald W. Wyatt Detention Facility by repeatedly punching and kicking him in the face and the head. Judge Burns referred to these incidents as aggravating factors when she refused PRESSLEY’s request for a sentence of time served and imposed a term of incarceration at the top of the federal sentencing guidelines range.
This matter was investigated by the Norwalk Police Department and the Drug Enforcement Administration, pursuant to the Project Safe Neighborhoods initiative in Norwalk. The case was prosecuted by Assistant United States Attorneys Robert Spector and Marc Silverman.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Norwalk Felon Caught with Gun Sentenced to 57 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that ANTOINE LAWS, 27, of Norwalk, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 57 months of imprisonment, followed by three years of supervised release, for possession of a firearm by a previously convicted felon.
According to court documents and statements made in court, on June 6, 2012, LAWS was arrested by the Norwalk Police Department in the Roodner Court housing complex after he was found in possession of a .25 Caliber ACP semi-automatic handgun, which was loaded with hollow-point ammunition, and a quantity of crack cocaine.
LAWS was previously convicted of burglary, narcotics and firearms offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
LAWS has been detained since his arrest. On January 29, 2013, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the Norwalk Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, pursuant to the Project Safe Neighborhoods initiative in Norwalk. The case was prosecuted by Assistant United States Attorney Sarah P. Karwan.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Northern Arapaho Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Christopher A. Crofts announced today that on May 22, 2013, Starr Dana Miller, a 20-year-old enrolled Northern Arapaho man from Arapahoe, Wyoming, appeared in Federal District Court for sentencing before United States District Judge Alan B. Johnson on a single count of abusive sexual assault in violation of 18 U.S.C. §§ 2244(a)(2) and 1153. Miller was sentenced to time served, seven months of home confinement, five years of supervised release and was ordered to pay a $100.00 special assessment and restitution in the amount of $2,467.00. The charge stemmed from an event which occurred on October 13, 2012, on the Wind River Indian Reservation. The case was investigated by the Federal Bureau of Investigation with substantial assistance of the Bureau of Indian Affairs.
North Dakota Man Charged with Distribution of A Controlled Substance, Firearm Offense and Asset ForfeitureRead the Press Release
United States Attorney Brendan V. Johnson announced that a North Dakota man has been indicted by a federal grand jury.
Ricardo Avila, age 53, was indicted by a federal grand jury on November 19, 2012 for Distribution of a Controlled Substance, Firearm Offense and Asset Forfeiture. Avila appeared before U.S. Magistrate Judge Mark A. Moreno on May 20, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years of imprisonment, a $1,000,000 fine, or both; at least 3 years of supervised release, an additional 3 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and Avila is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Avila was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
North County Mexican Mafia Member Pleads Guilty to ConspiracyRead the Press Release
United States Attorney Laura E. Duffy announced that Rudy Espudo pled guilty today before United States District Judge Irma E. Gonzalez to three counts of a superseding indictment including:
conspiracy to conduct enterprise affairs through a pattern of racketeering activity (commonly known as RICO conspiracy);
conspiracy to distribute methamphetamine; and
knowingly and intentionally brandishing a firearm during and in relation to a crime of violence and a drug-trafficking crime.According to the superseding indictment handed up on August 2, 2012, Espudo is a validated member of the Mexican Mafia who oversaw their activities throughout much of northern San Diego County.
In his guilty plea, Espudo admitted to engaging in drug trafficking and extortion, as well as profiting from the criminal activity of those gang members who worked under his so-called protection. Espudo pledged to “protect” these criminals as long as they paid their “taxes” to the Mexican Mafia. Such taxes are essentially extortion payments made by gang members and drug dealers to a Mexican Mafia member for the right to conduct their illegal activity free from interference from the Mexican Mafia. In one example of a drug dealer who refused to make tax payments, Espudo admitted that he ordered the robbery of that person, which was committed with the use of a shotgun. Espudo also admitted that he had authority over several Mexican Mafia associates who assisted by collecting taxes on his behalf. Drug dealers who paid him taxes in this manner were responsible for distributing methamphetamine, cocaine, heroin and other drugs on the streets of San Diego County.
This case is part of "Operation Notorious County," an investigation led by the North County Regional Gang Task Force, a group of federal, state, and local law enforcement agents led by the San Diego County Sheriff’s Department and the Federal Bureau of Investigation. Operation Notorious County resulted in eight indictments in January 2012, charging fifty-one individuals with participating in a federal racketeering influenced and corrupt organization (RICO) conspiracy. United States Attorney Duffy praised the North County Regional Gang Task Force for the coordinated team effort in this investigation.
Espudo has been in custody since his arrest in January 2012. Judge Gonzalez set a sentencing hearing for Espudo for October 7, 2013.
DEFENDANT Case Number: 12CR0236IEG Rudy Espudo, aka Crazy SUMMARY OF CHARGESTitle 18, United States Code, Section 1962(d) – Conspiracy to conduct enterprise affairs through a pattern of racketeering activity; Title 21, United States Code, Section 841 -Conspiracy to distribute methamphetamine; and Title 18, United States Code, Section 924(c) -Brandishing of a firearm in the commission of a crime of violence and a drug trafficking offense. Maximum penalties: Life in prison
INVESTIGATING AGENCIESSan Diego County Sheriff's Department
Federal Bureau of Investigation
Chula Vista Police Department
National City Police Department
San Diego Police Department
San Diego County District Attorney's Office
U.S. Bureau of Prisons
California Department of Corrections and Rehabilitation
San Diego County Probation
Department, Immigration and Customs Enforcement's Homeland Security Investigations Internal Revenue Service-Criminal InvestigationsMorris County, N.J., Man Sentenced to Lengthy Prison Term for Distributing Videos of Child Sexual Abuse over the InternetRead the Press Release
CAMDEN, N.J. – A Morris County, N.J., man was sentenced today in Camden federal court to 210 months in prison for distributing images and videos of child sexual abuse over the Internet, U.S. Attorney Paul J. Fishman announced.
William Rensing, 46, of Lincoln Park, N.J., previously pleaded guilty to one count of an indictment charging him with distribution of child pornography. Rensing entered his guilty plea before U.S. District Judge Jerome B. Simandle, who also imposed the sentence today. Rensing has been in federal custody since his arrest.
According to documents filed in the case and statements made in court:
Law enforcement executed a search warrant at Rensing’s home on July 27, 2011, and seized a notebook computer that contained images and videos of child sexual abuse, including depictions of children as young as 6 years old. Rensing was arrested the same day. He later admitted in court that on March 25, 2011, he used peer-to-peer file-sharing software to share images and videos of child sexual abuse through the Internet.
The length of Rensing’s sentence is due in part to his prior conviction for sexual assault of a minor. In addition to the prison term, Judge Simandle sentenced Rensing to serve 10 years of supervised release.U.S. Attorney Fishman praised special agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark, for the investigation, as well as detectives of the Morris County Prosecutor’s Office.
The government is represented by Assistant U.S. Attorney Daniel V. Shapiro of the U.S. Attorney’s Office General Crimes Unit in Newark.
13-212Defense counsel: Sean McGovern Esq., Newark
Missouri Woman Indicted for Violating Civil Rights of Family by Setting Fire to Their HomeRead the Press Release
An Independence, Mo., woman was indicted by a federal grand jury today for violating the civil rights of an African-American family by setting fire to their residence, announced Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division of the Department of Justice, and Tammy Dickinson, U.S. Attorney for the Western District of Missouri.
Victoria A. Cheek-Herrera, 33, of Independence, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment charges Cheek-Herrera with participating in a conspiracy to threaten and intimidate an Independence family from exercising their constitutional right to reside in their home because of their race or color. It also charges Cheek-Herrera with committing a racially-motivated arson and with using fire during the commission of a felony.
According to the indictment, Cheek-Herrera conspired with others on June 26, 2008, to injure, oppress, threaten and intimidate Larry Davis, Stacey Little and the couple’s minor children in the free exercise of their constitutional right to occupy and rent their home in Independence, because of their race and color. Davis, Little and their children are all African American.
The indictment alleges that Cheek-Herrera discussed with others her desire to set fire to the home of Davis and Little, and that Cheek-Herrera and a co-conspirator drew a swastika and wrote the words “White Power” on the driveway to Davis and Little’s residence. Cheek-Herrera allegedly asked a juvenile acquaintance for gasoline then helped create a Molotov cocktail by filling a glass bottle with gasoline and inserting a rag into the bottle to serve as a wick. Cheek-Herrera and a co-conspirator then allegedly lit the wick and threw the gasoline-filled bottle into the side of the house that Davis and Little were renting, which set the residence on fire.
If convicted, Cheek-Herrera faces a statutory maximum penalty of 10 years in prison and a fine of $250,000 for one charged count of conspiracy against rights, a statutory maximum penalty of 10 years in prison and a fine of $250,000 for one charged count of interference with housing rights, and a penalty of 10 years imprisonment consecutive to any other sentence and a fine of $250,000 for one charged count of using fire during the commission of a felony.
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 David M. Ketchmark and Trial Attorney Shan Patel of the Civil Rights Division of the U.S. Department of Justice. It was investigated by the FBI.
Mississippi Laboratory Operator Found Guilty of Falsifying Records on Industrial WastewaterRead the Press Release
The owner and sole operator of an environmental laboratory was found guilty yesterday in U.S. District Court for the Southern District of Mississippi of all counts of a federal indictment charging falsification of records and obstructing a federal criminal investigation, announced Assistant Attorney General Ignacia S. Moreno of the Justice Department’s Environment and Natural Resources Division and the U.S. Attorney for the Southern District of Mississippi Gregory K. Davis.
Tennie White, owner, operator and manager of Mississippi Environmental Analytical Laboratories Inc., was charged in a three-count felony indictment with two false statements counts and one count of obstructing proceedings. The jury found the White guilty of all counts after an eight day trial before U.S. District Judge Henry T. Wingate at the federal courthouse in Jackson, Miss.
“Our environmental regulatory system depends on the self-reporting of accurate information, including what is being released into the environment. When laboratories who are paid to test and report samples of what is being discharged into our nation’s waters fabricate results and lie to investigators, they will be prosecuted,” said U.S. Attorney Davis.
“Americans expect their public water supply to be clean and safe to use,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in Mississippi. “In order to safeguard public health it is absolutely essential that governments receive accurate test results and measurements. Violators who submit false reports undermine our efforts to protect the public and the environment. Today’s guilty verdict by a jury demonstrates that the American people will not tolerate laboratories and their managers who place the public at risk by knowingly falsifying test results.”
As describe in the indictment, White was hired to perform laboratory testing of a manufacturer’s industrial process waste water samples and then to use those results to complete monthly discharge monitoring reports for submission to the Mississippi Department of Environmental Quality. The indictment alleged that from October to December 2008 White created three discharge monitoring reports (DMRs) that falsely represented that laboratory testing had been performed on samples when, in fact, such testing had not been done. The indictment further alleged that White created a fictitious laboratory report and presented it to her client for use in preparing another DMR for January 2009. The indictment also alleged that White made false statements to a federal agent during a subsequent criminal investigation.
Sentencing has been scheduled for Aug. 8, 2013 in federal court in Jackson. For the false statements charges, the defendant is facing a maximum sentence of five years in prison and a $250,000 fine per count. The obstructing proceedings charge carries a maximum sentence of 20 years in prison and a $250,000 fine.
The case was prosecuted by Trial Attorney Richard J. Powers of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division, and Assistant U.S. Attorney Gaines Cleveland of the U.S. Attorney’s Office for the Southern District of Mississippi.Mill Creek Man Sentenced to 22 Years in Prison for Production of Child PornographyRead the Press Release
A 58-year-old Mill Creek, Washington man was sentenced today in U.S. District Court in Seattle to 22 years in prison and lifetime supervised release for production of child pornography, announced U.S. Attorney Jenny A. Durkan. PHILLIP STEVEN ALLEN pleaded guilty December 21, 2012. At sentencing U.S. District Judge Richard A. Jones told him, “You grossly violated the trust” of these young victims. Judge Jones noted that ALLEN “permanently placed in the stream of commerce the images of these young children.”
“This defendant molested young relatives, and then victimized them again by distributing sexually explicit images of them to others via the internet,” said U.S. Attorney Jenny A. Durkan. “It is hard to imagine more depraved conduct, which will haunt these young children for years to come. This defendant has fully earned this 22 year prison term.”
According to records filed in the case, ALLEN came to the attention of law enforcement in 2010, when they served a search warrant on a residence in Bloomington, Indiana. The occupant of the home was being investigated for distribution of child pornography. Investigators determined that the Indiana resident had sent child pornography to an email address in Mill Creek. Further investigation linked the address to ALLEN. In July 2011 agents served a search warrant at ALLEN’s address. A computer and two external hard drives were analyzed. Law enforcement found pornographic pictures on the devices of young children who are related to ALLEN. The images have been found in three separate investigations of possession of child pornography across the country.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Jerrod C. Patterson. Mr. Patterson is the Project Safe Childhood coordinator for the U.S. Attorney’s Office.
Michael Andrew Kannegiesser Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 23, 2013, before U.S. District Judge Donald W. Molloy, MICHAEL ANDREW KANNEGIESSER, a 22-year-old resident of Billings, appeared for sentencing. KANNEGIESSER was sentenced to a term of:
Prison: 15 months
Special Assessment: $100
Community Service: 150 hours
Supervised Release: 3 years
KANNEGIESSER was sentenced in connection with his guilty plea to possession of a stolen firearm.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
On July 8, 2012, KANNEGIESSER was stopped for speeding by law enforcement in Red Lodge. The deputy conducting the stop could smell the odor of an alcoholic beverage and marijuana coming from inside KANNEGIESSER's vehicle, and found an open can of beer in the cup-holder. KANNEGIESSER had a suspended driver's license and his passenger had two warrants. Both were taken into custody. Marijuana and other items of drug paraphernalia were located in the vehicle. While in the vehicle, KANNEGIESSER told the officer that he had a gun right next to him, and the officer found a Springfield, model XDM, 9 mm, semi-automatic pistol right next to where KANNEGIESSER had been sitting, covered by a sleeping bag. KANNEGIESSER gave several conflicting stories about whether the gun was his and then where he had obtained the gun. He also reported that he had a Ruger 10-22 and a Marlin .22 at home. When the deputy checked the gun's serial number, he found that it had been stolen from a person in Billings in May, along with a Ruger 10-22 and a Marlin .22. Both KANNEGIESSER and his passenger were taken into custody; Kannegieser reported that he was on probation and could not be in possession of a firearm.
An ATF Task Force Officer contacted KANNEGIESSER several days later and received additional conflicting stories about his acquisition of the gun, and where the others he had reported he owned were. The officer was unable to retrieve the other stolen guns.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that KANNEGIESSER will likely serve all of the time imposed by the court. In the federal system, KANNEGIESSER does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Red Lodge Police Department.
Manchester Attorney Sentenced to 40 Years on Federal Child Exploitation ChargesRead the Press Release
CONCORD, N.H. – Lisa Biron, 43, of Manchester, was sentenced today in United States District Court for the District of New Hampshire to 40 years in federal prison on child exploitation charges, announced United States Attorney John P. Kacavas.
Following a three-day jury trial in January, Biron was convicted of transportation of a child for illegal sexual conduct, sexual exploitation of a child, and possession of child pornography
The investigation began in September 2012, when an 18-year-old male reported to the Manchester Police Department that he met Biron via a Craigslist personal ad that she had placed. The young male reported that he smoked marijuana and had sex with Biron, following which she introduced him to a young female as her “18-year-old roommate,” who in fact was barely 14-years old. Biron subsequently encouraged the young male to engage in sexual activity with the minor female while Biron video recorded them.
The male also reported that Biron showed him videos of the minor female engaged in sexual activity with another young man. Based on this information, law enforcement initiated an investigation, which included the search of Biron’s residence and her computer. The search revealed videos and photographs of the minor female engaged in sexual activity with this other young male. Evidence at trial revealed that Biron had transported the minor female to Niagara Falls, Ontario, Canada in May of 2012, for the purpose of manufacturing the videos of the minor female engaged in sexual activity with this young male. The search of Biron’s computer also revealed a video of Biron herself engaged in sexual activity with the minor female.
United States Attorney Kacavas observed that “this case represents yet another example of our resolve to identify, prosecute and seek long federal prison terms for those who, like the Defendant, exploit minors for sexual purposes. As for this Defendant, her sentence effectively removes her from society for the balance of her life and eradicates the threat she poses to minors and adolescents. As for like-minded individuals who prey on our children, or who manufacture, distribute and possess images of child sexual exploitation, let this sentence serve as a warning that you will face swift and certain justice in New Hampshire.”
This case was investigated by the Federal Bureau of Investigation, Department of Homeland Security Immigration and Customs Enforcement, Customs and Border Protection, the Hillsborough County Attorney’s Office, the Manchester Police Department, the Strafford County House of Corrections and the Ontario Provincial Police. The case was prosecuted by United States Attorney John P. Kacavas and Assistant United States Attorney Helen Fitzgibbon.
Lilburn Resident Charged with Illegal Possession of FirearmsRead the Press Release
Two Silencers Stolen from Licensed Firearm Dealer
ATLANTA - Kevin S. Lahey has been indicted by a federal grand jury on charges of possessing two firearm silencers which are not registered to him in the National Firearms Registration and Transfer Record, of possessing and receiving seven firearms while being an unlawful user of controlled substances, and for making false statements in connection with the purchase of three firearms.
“This potentially dangerous situation was discovered and defused before it could escalate,” said United States Attorney Sally Quillian Yates. “Through the diligence of our federal and local law enforcement agencies, we will continue to work hard to keep our District safe and secure.”
“ATF’s mission and priority is to deny criminals access to firearms and protect the rights of law abiding citizens. When offenders illegally possess firearms that can be used against our citizens, our children and our community, ATF takes this very seriously,” said ATF Special Agent in Charge Christopher Shaefer.
According to United States Attorney Yates, the charges and other information presented in court, on February 6, 2013, a man, later identified as Lahey, stole two silencers from a Lawrenceville firearms dealer. On February 9, 2012, Snellville Police arrested Lahey in connection with an alleged shoplifting incident at Wal-Mart where he allegedly attempted to steal two laser sights, a bi-pod stand for a rifle, and a holster. Lahey resisted arrest when officers attempted to arrest him. During that fight, officers report that he dropped a loaded handgun. Lahey was released on bond on February 10. As a result of this shoplifting arrest, the Snellville police were able to identify Lahey to the Bureau of Alcohol, Tobacco, Firearms, and Explosives as the individual who stole the silencers on February 6, 2013.
After identifying Lahey, an ATF task force officer obtained a warrant for his arrest and a search warrant for his residence. On February 25, 2013, officers and agents from both the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Gwinnett County Police Department executed the search warrant. During that search, they found one of the stolen silencers attached to a .22 caliber pistol. Agents later returned and found the second silencer in the crawlspace below Lahey’s parents’ house. Neither silencer was registered to Lahey in the National Firearms Registration and Transfer Record as required by federal law. In addition, during the search, agents found multiple firearms in Lahey’s possession, marijuana, bongs, drug pipes and other drug paraphernalia, and a body armor fragmentation protective vest.
Lahey, 26, of Lilburn, Georgia was originally indicted by a federal grand jury on March 19, 2013, for possession of a silencer that was not registered to him. That indictment has now been superseded to include additional firearms charges. The superseding indictment has seven counts, including possession of a firearm silencer which is not registered to the defendant in the National Firearms Registration and Transfer Record, possession of seven firearms by an unlawful user of controlled substances, receipt of three firearms while being an unlawful user of controlled substances, and making false statements in connection with the purchase of three firearms, specifically denying that he was an unlawful user of controlled substances. The charges each carry a maximum sentence of 10 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.
Lahey is scheduled to be arraigned on the superseding indictment on May 30, 2013. He first appeared in court on March 1, 2013, after he was arrested on a federal complaint. At that time, Lahey was detained without bond and remanded to the custody of the U.S. Marshal pending trial. He remains in custody.
This case is being investigated by Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant United States Attorney Christopher J. Huber is prosecuting the case.
Members of the public are reminded that the indictment contains only allegations. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.
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.
Las Vegas Bankruptcy Attorney Sentenced to Two Years in Prison for Tax EvasionRead the Press Release
LAS VEGAS, Nev. – Las Vegas bankruptcy attorney Randolph H. Goldberg was sentenced this morning to two years in prison, a $40,000 fine, and three years of supervised release, for his guilty plea to willful tax evasion, announced Daniel G. Bogden, United States Attorney for the District of Nevada. Goldberg also paid $720,719 in restitution at sentencing and must surrender his law license for two years.
“As this sentence indicates, the penalties are severe if you willfully evade or defeat payment of your federal income taxes,” said U.S. Attorney Bogden. “Cheating on your taxes is not a way to remove debt and is never a good option.”
Goldberg pleaded guilty on March 29, 2013, to one count of attempt to evade or defeat tax for the tax year 2008 and admitted that he filed tax returns that significantly understated his taxable income and attempted to hide the income through the use of nominee bank accounts.
According to the facts in the plea agreement, Goldberg’s law firm, Randolph Goldberg, Esq., was organized and incorporated under Subchapter S of the IRS Code, which made any income generated by the firm taxable individually to Goldberg. In 2009, Goldberg willfully caused the filing of false and fraudulent federal tax returns for himself and the law firm, knowing that the returns contained false and fraudulent information and understated his true income in calendar year 2008. During 2008 and 2009, Goldberg also attempted to conceal the true income of his law firm by causing proceeds generated by the firm to be deposited directly into his personal bank account and to be deposited into a bank account held by a nominee corporation, separate from his law firm practice.
Goldberg was permitted to self-report to federal prison by Aug. 22, 2013.
The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorneys Christina M. Brown and Steven W. Myhre.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Laredoan Gets Max for Illegal Possession of A ShotgunRead the Press Release
LAREDO, Texas – Juan Francisco Leal, 39, of Laredo, has been ordered to federal prison for 10 years for being a felon in possession of a shotgun, United States Attorney Kenneth Magidson announced today. Leal pleaded guilty to the charge Dec. 10, 2012.
Today, U.S. District Judge Diana N. Saldaña sentenced Leal to a term of 120 months in federal prison – the maximum allowed by law. Following completion of his prison term, he will be on supervised release for three years.
Laredo Police Department (LPD) investigators interviewed Leal on Feb. 10, 2012, as a suspect in a murder in Laredo. In the course of the investigation, a Mossberg 12-gauge shotgun was found in the attic of Leal’s home. Officers also found a plastic bag containing 124.40 grams of methamphetamine. Leal stated he had acquired the shotgun for protection, because he sold drugs from his home. Leal also admitted he is a former member of the Mexican Mafia.
As a convicted felon, Leal is prohibited from possessing a firearm.
At the sentencing today, Leal asked for leniency. However, Judge Saldaña noted the defendant’s criminal history - dating to 1991 when convicted of attempted murder and two subsequent charges of alien smuggling and possessing marijuana - and stated “there is strong need to protect the community from you.”
Court records reflect that on Oct. 10, 2012, a Webb County grand jury indicted Leal for murder.
This case was brought as part of Project Safe Neighborhoods (PSN), a nationwide commitment to reduce gun and gang crime in America by networking existing local programs that target gun and gun crime and providing these programs with additional tools necessary to be successful. Since its inception in 2001, approximately $2 billion has been committed to this initiative. This funding is being used to hire new federal and state prosecutors, support investigators, provide training, distribute gun lock safety kits, deter juvenile gun crime and develop and promote community outreach efforts as well as to support other gun and gang violence reduction strategies.
The matter was investigated by the ATF in conjunction with the Laredo Police Department. Several police officers have been cross-designated as ATF task force officers working directly with the federal agency, assisting in the investigation of this and other crimes. Assistant United States Attorney Homero Ramirez prosecuted the case.
Justice Department Reaches Settlement with Leading Facility Services CompanyRead the Press Release
The Justice Department announced today that it has reached an agreement with ISS Facility Services Company resolving allegations that the company violated the anti-discrimination provision of the Immigration and Nationality Act (INA). ISS, with headquarters in San Antonio, Texas, employs approximately 15,000 employees in the United States.
The Justice Department’s investigation was initiated based on a referral from the U.S. Citizenship and Immigration Services (USCIS). The investigation focused on whether the ISS offices in Dallas and Houston were requiring non-citizens to present specific U.S. Department of Homeland Security-issued documents to establish their identity and work-authority while not making similar requests of U.S. citizens. The INA’s anti-discrimination provision prohibits employers from discriminating against noncitizens in the employment eligibility verification process by demanding more or different documents than U.S. citizens are required to present.
According to the settlement agreement, ISS agreed to ensure that all its offices complied with the company’s existing employment eligibility verification policies and procedures and to provide training of its human resources personnel on the INA’s anti-discrimination provision. ISS also agreed to pay $49,800 to the United States and to identify and compensate any individuals who may have suffered economic injuries as a result of its practices. Under the agreement, ISS’ employment eligibility verification practices will be subject to monitoring by the department for a period of two years.“Employers cannot create higher hurdles for non-U.S. citizens in the employment eligibility verification process than those required of U.S. citizens unless required by law,” said Gregory Friel, Deputy Assistant Attorney General for the Civil Rights Division. “We commend ISS for its exemplary cooperation in working with the department to identify the source of the problems in its employment eligibility verification process at two of its offices and to work with the department in addressing those problems.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The case was handled by Linda White Andrews, an OSC trial attorney. For more information about protections against employment discrimination under the immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TTY for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-362-2735, TTY for hearing impaired), sign up for a no-cost webinar at www.justice.gov/about/osc/webinars.php , email [email protected] or visit the website at www.justice.gov/crt/about/osc .
Jicarilla Apache Woman Sentenced to Federal Prison for Assaulting a Navajo Woman on the Mescalero Apache ReservationRead the Press Release
ALBUQUERQUE – Earlier today, Heather Atole, 28, a member of the Jicarilla Apache Nation, was sentenced in Las Cruces federal court to 20 months in federal prison followed by two years of supervised release for her federal assault conviction. Atole also was ordered to pay $49,321.07 in restitution to cover the cost of medical treatment for the victim.
Atole initially was arrested by the Mescalero Agency of the BIA’s Office of Justice Services on tribal charges on Aug. 21, 2011, based on an assault that occurred on June 27, 2011. She subsequently was arrested by the FBI on a federal criminal complaint on Nov. 22, 2011, and was indicted on Nov. 30, 2011. The indictment charged Atole with (1) assault with a dangerous weapon and (2) assault resulting in serious bodily injury.
According to court filings, Atole repeatedly stabbed a 28-year-old Navajo woman in the early hours of June 27, 2011, during a party at a residence located on the Mescalero Apache Reservation. The victim sustained stab wounds to the upper torso, shoulder and back. Atole later told law enforcement officers that she stabbed the victim because she saw the victim kiss her boyfriend.
On Sept. 11, 2012, Atole pleaded guilty to both counts of the indictment. In entering her guilty plea, Atole admitted stabbing the victim four times with an eight-inch kitchen knife because she perceived the victim to be a romantic rival. Atole has been in federal custody since entering her guilty plea.
This case was investigated by the Las Cruces office of the FBI and the Mescalero Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Independence Woman Indicted for Violating Civil Rights of Family by Torching their HomeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, and Roy L. Austin Jr., Deputy Assistant Attorney General for the Civil Rights Division of the Department of Justice, announced that an Independence, Mo., woman was indicted by a federal grand jury today for violating the civil rights of an African-American family by setting fire to their residence.
Victoria A. Cheek-Herrera, 33, of Independence, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment charges Cheek-Herrera with participating in a conspiracy to threaten and intimidate an Independence family from exercising their constitutional right to reside in their home because of their race or color. It also charges Cheek-Herrera with committing a racially-motivated arson and with using fire during the commission of a felony.
According to the indictment, Cheek-Herrera conspired with others on June 26, 2008 to injure, oppress, threaten, and intimidate Larry Davis, Stacey Little and the couple’s minor children in the free exercise of their Constitutional right to occupy and rent their home in Independence, because of their race and color. Davis, Little and their children are all African American.
The indictment alleges that Cheek-Herrera discussed with others her desire to set fire to the home of Davis and Little, and that Cheek-Herrera and a co-conspirator drew a swastika and wrote the words “White Power” on the driveway to Davis and Little’s residence. Cheek-Herrera allegedly asked a juvenile acquaintance for gasoline then helped create a Molotov cocktail by filling a glass bottle with gasoline and inserting a rag into the bottle to serve as a wick. Cheek-Herrera and a co-conspirator then allegedly lit the wick and threw the gasoline-filled bottle into the side of the house that Davis and Little were renting, which set the residence on fire.
If convicted, Cheek-Herrera faces a maximum penalty of 10 years imprisonment and a fine of $250,000 for one charged count of conspiracy against rights, a maximum penalty of 10 years imprisonment and a fine of $250,000 for one charged count of interference with housing rights, and a penalty of 10 years imprisonment consecutive to any other sentence and a fine of $250,000 for one charged count of using fire during the commission of a felony.
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 First Assistant U.S. Attorney David M. Ketchmark and Trial Attorney Shan Patel of the Civil Rights Division of the U.S. Department of Justice. It was investigated by the FBI.Houston Man Charged with Threatening to Bomb SynagoguesRead the Press Release
A federal complaint has been unsealed charging Dante Phearse, 32, of Houston, with calling in bomb threats to two synagogues located in Houston, announced Deputy Assistant Attorney General for the Civil Rights Division Roy L. Austin Jr. and U.S. Attorney for the Southern District of Texas Kenneth Magidson.
The sealed complaint was filed Thursday, May 16, 2013, and unsealed today. Phearse is expected to make an initial appearance in Houston tomorrow at 10:00 a.m. before U.S. Magistrate Judge Nancy Johnson. At that time, the government expects to request he be detained pending further criminal proceedings.
Phearse is charged with one count of using an instrument of interstate commerce to communicate a threat to destroy a building by means of an explosive device. The complaint and accompanying affidavit allege that on the evening of April 30, 2013, Phearse telephoned two different synagogues in Houston - Congregation Beth Israel and Congregation Or Ami - and left voice mails threatening to bomb the Jewish houses of worship on May 2, 2013.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
If convicted, Phearse faces up to 10 years in federal prison and a possible $250,000 fine.
The case is being investigated by the Houston Police Department and the FBI. Trial Attorneys Saeed Mody and Nicholas Murphy of the Civil Rights Division and Assistant U.S. Attorneys for the Southern District of Texas Ruben R. Perez and Joe Magliolo are prosecuting.
Houston Man Charged with Threatening to Bomb SynagoguesRead the Press Release
HOUSTON – A federal complaint has been unsealed charging Dante Phearse, 32, of Houston, with calling in bomb threats to two synagogues located in Houston, announced United States Attorney Kenneth Magidson and Deputy Assistant Attorney General for the Civil Rights Division Roy L. Austin Jr.
The sealed complaint was filed Thursday, May 16, 2013, and unsealed today. Phearse is expected to make an initial appearance in Houston tomorrow at 10:00 a.m. before U.S. Magistrate Judge Nancy Johnson. At that time, the government expects to request he be detained pending further criminal proceedings.
Phearse is charged with one count of using an instrument of interstate commerce to communicate a threat to destroy a building by means of an explosive device. The complaint and accompanying affidavit allege that on the evening of April 30, 2013, Phearse telephoned two different synagogues in Houston - Congregation Beth Israel and Congregation Or Ami - and left voice mails threatening to bomb the Jewish houses of worship on May 2, 2013. .
In convicted, he faces up to 10 years in federal prison and a possible $250,000 fine.
The case is being investigated by the Houston Police Department and the FBI. Assistant United States Attorneys Ruben R. Perez and Joe Magliolo are prosecuting along with trial attorneys Saeed Mody and Nicholas Murphy of the Civil Rights Division.
Houston Area “Pastor” Charged in Real Estate Investment SchemeRead the Press Release
HOUSTON - Samuel Ray Palasota, 52, of Houston, has surrendered to federal authorities following the return of a 24-count indictment alleging he operated a fraudulent real estate investment scheme and defrauded a woman of $650,000, United States Attorney Kenneth Magidson announced today.
The sealed indictment, returned May 8, 2013, and unsealed today, charges Palasota with 21 counts of mail fraud and three counts of wire fraud. Palasota is expected to appear before U.S. Magistrate Judge Nancy Johnson at 2:00 p.m. today.
According to the indictment, Palasota held himself out as a pastor and also claimed to manage a real estate investment program, doing business under the name “The Maker’s Resources.” From in or about December 2008 through approximately December 2009, Palasota knowingly devised and intended to devise a scheme and artifice to defraud by means of material false pretenses, representations and promises, the indictment alleges. Specifically, Palasota allegedly convinced a Mississippi woman to invest her money with him in an alleged real estate investment. However, instead of investing in real estate, Palasota stole her money, according to the indictment.
The woman divorced in 2007 and looked to Palasota for spiritual guidance and emotional support, according to the indictment. During the time she was seeking guidance from him, she received approximately $1 million in her divorce settlement.
Palasota allegedly claimed to have a real estate investment program, in which he would purchase foreclosed homes in the Houston area at below-market prices and would later re-sell them for a profit. The indictment alleges Palasota told the woman he wanted investors who would partner with him to finance the purchase of the properties. As part of his scheme, Palasota claimed his real estate investment was “guaranteed” to provide a high rate of return to investors. The indictment indicates he provided the woman with an investment schedule that claimed the minimum rate of return would increase by five percent for every additional $100,000 she invested, up to a maximum of $650,000.
The woman subsequently invested the maximum $650,000 in Palasota’s scheme, according to allegations. Palasota then allegedly used those funds for his personal benefit, including paying his personal expenses and purchasing automobiles.
In furtherance of the scheme, the indictment alleges Palasota did make payments to the woman which he termed “returns on investment.” These payments, however, were not the proceeds of an investment but were simply the return of a portion of her own money, made in an effort to appear as though the so-called investment was generating income.
If convicted, Palasota faces a possible 20 years in prison and a maximum $250,000 fine for each of the 21 counts of mail fraud and the three counts of wire fraud. The indictment also includes a notice of forfeiture in the amount of $650,000.
The case in being investigated by the FBI. Assistant United States Attorney Robert S. Johnson is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Heroin Dealers Who Attempted to Elude Police Get Federal Prison TimeRead the Press Release
CHARLESTON, W.Va. – Two men who attempted to flee police in a vehicle containing illegal drugs and thousands of dollars’ cash in March 2011 were each sentenced to prison on federal drug charges, announced U.S. Attorney Booth Goodwin. Stephen Michael Hopkins, 36, of Huntington, was sentenced on May 23 to 12 years and seven months in prison. Hopkins’ co-defendant Eddie Daivon Morgan, 32, of Beckley, W.Va., was also sentenced on Wednesday to four years in prison. Hopkins previously pleaded guilty in January to aiding and abetting the possession with intent to distribute heroin. Morgan previously pleaded guilty to using a cellular telephone to facilitate the possession with intent to distribute heroin.
On March 16, 2011, officers with the Charleston Police Department responded to a call near the 2600 block of 6th Avenue in Charleston. Upon arriving at the scene, officers approached Hopkins and Morgan, both of whom were sitting inside of a parked Dodge Charger. A responding officer ordered Hopkins and Morgan to step out of the vehicle. Hopkins, who was sitting in the driver’s seat at the time, refused to obey the order given by police and drove away. Officers pursued the defendants as they fled the scene. During the police chase, Hopkins lost control of his vehicle and crashed at the intersection of 7th Street and Iowa Street in Charleston. Hopkins and Morgan attempted to flee on foot, but were apprehended by officers a short time later. Officers conducted a search of the vehicle and recovered a plastic bag underneath the driver’s seat of the vehicle. The bag contained $10,920 in cash, suspected heroin, and marijuana. The suspected heroin was submitted to the West Virginia State Police lab for testing and was found to be heroin weighing 26.6 grams.
Police also seized a cellular phone that belonged to Morgan. Text messages on the phone revealed messages that were sent by Morgan, informing various individuals that he had “dog food” for sale. The term “dog food” was used in reference to the heroin that was seized by police.
The Charleston Police Department conducted the investigation. Assistant United States Attorney Monica D. Coleman handled the prosecutions. The sentences were imposed by United States District Judge John T. Copenhaver, Jr.
Guilty Pleas in Rocky River Fish-Kill Case; Restitution Will Be Used to Restock the River with Steelhead TroutRead the Press Release
A Strongsville company and the company owner’s wife pleaded guilty for their roles in the dumping of a drum of liquid cyanide into a storm drain that flowed into the Rocky River, resulting in the death of more than 30,000 fish, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Kennedy Mint, Inc. pleaded guilty to violating of the Clean Water Act.
Teresina Montorsi, 74, pleaded guilty to obstruction of justice.
“Clean, fresh water is Ohio’s greatest natural resource,” Dettelbach said. “We are satisfied that we were able to determine who put the cyanide into the river and killed tens of thousands of fish. The restitution from this case will be used to restock the river with fish, so that people can again enjoy the natural beauty of the Rocky River.”
“Our natural resources must be protected from illegal discharges,” said Randall K. Ashe, Special Agent in Charge of U.S. EPA’s criminal enforcement program in Ohio. “This prosecution sends a clear message that crimes against the environment will not be tolerated and will be vigorously prosecuted.”
Ohio Attorney General Mike DeWine said: “Illegal dumping into Ohio sewers brings severe consequences, both for our environment and for perpetrators. We will continue to work with other agencies to bring justice to those who violate environmental laws and to protect Ohio’s valuable natural resources.”
Company owner Renato Montorsi was indicted last year, but those charges were dismissed after he wasfound to be incompetent to stand trial.
Renato and Teresina Montorsi are married and live in Grafton, Ohio, according to public records.
Kennedy Mint will pay restitution of $30,893 -- $1 for every fish killed by the illegal discharge. The money will be paid to the Ohio Department of Natural Resources and used to restock the river with steelhead trout under the terms of the plea agreement.Kennedy Mint will also make a payment to the Cleveland Metroparks. The amount will be determined at sentencing, which is scheduled for Aug. 29.
Renato Montorsi owned and operated Kennedy Mint, which is located in Strongsville. Kennedy Mint specializes in collectible coins, but previously conducted metal plating and printing operations. The East Branch of the Rocky River is near the Kennedy Mint facility and storm water from that location’s parking lot flows into the East Branch of the Rocky River, according to court documents.
On April 16, 2012, Montorsi, with assistance from an employee, put two drums into a dumpster outside Kennedy Mint. On April 17, the waste hauling company declined to dispose of the contents of the dumpster because of the two drums inside, according to court documents.
On April 18, Montorsi moved the drums from the dumpster and placed them next to the storm drain in the Kennedy Mint parking lot, according to court documents.
Later that day, Montorsi used a hammer and sharp metal tool to punch a hole near the bottom of a drum that included a poison label featuring a skull and cross bones. After punching the hole, liquid cyanide in the drum was discharged into the storm drain and eventually the East Branch of the Rocky River, according to court documents.
Around April 22, the Ohio Department of Natural Resources received reports of dead fish in the East Branch of the Rocky River. Nearly every fish was dead downstream for the next three miles, according to the court documents.
The Ohio DNR counted approximately 30,893 dead fish in that three-mile stretch of the river, due to the discharge of cyanide, according to court documents.
On April 25, personnel from the Ohio Environmental Protection Agency asked to enter the Kennedy Mint facility to look for the drums, which they did not locate. After they left, Renato Montorsi, with help from Teresina Montorsi, moved two drums from Kennedy Mint to their residence so they would not be discovered if investigators returned, according to court documents.
On June 22, Teresina Montorsi gave permission to U.S. EPA agents to search their home without a warrant, at which point the agents found the punctured drum and another drum that contained cyanide, according to court documents.
This case is being prosecuted by Special Assistant U.S Attorney Brad J. Beeson following an investigation by the following agencies: United States Environmental Protection Agency, Criminal Investigation Division; Ohio Bureau of Criminal Identification and Investigation; the Northeast Ohio Regional Sewer District; the Ohio Environmental Protection Agency, Office of Special Investigations; the Ohio Department of Natural Resources, Division of Wildlife, and the Cleveland Metroparks Rangers, all members of the Northeast Ohio Environmental Crimes Task Force.
People can report possible environmental violations to Ohio EPA at 800-282-9378 or U.S. EPA at www.epa.gov/tips
Grand Jury Charges 18 in Dayton-Portsmouth Heroin Trafficking ConspiracyRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCINCINNATI – A federal grand jury has charged nine people from Portsmouth, Ohio and eight people from the Dayton, Ohio area with engaging in a two-year conspiracy to deliver heroin from Dayton to Portsmouth where they distributed it out of seven Portsmouth locations including two motels. The eighteenth defendant lives in Lancaster, Ohio.
All are charged with conspiracy to possess with intent to distribute more than one kilogram of heroin, a crime punishable by at least ten years and up to life in prison.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI), Ohio HIDTA Director Derek Siegel, Scioto County Sheriff Marty Donini, Montgomery County Sheriff Phil Plummer, Portsmouth Police Chief Robert Ware and Dayton Police Chief Richard Biehl announced the indictment which was unsealed today following arrests by federal and local law enforcement officers.
The 29-count indictment charges members of the conspiracy with other crimes including possession with intent to distribute heroin, distribution of heroin and maintaining a place for the purpose of distributing heroin. Each of those crimes is punishable by a sentence ranging from probation to 20 years in prison.
If convicted of any of the crimes alleged in the indictment, the defendants must also forfeit any proceeds or profits they received from the conspiracy, in addition to any prison sentence they may receive.
U.S. Attorney Stewart commended the cooperative investigation by members of the HIDTA Task Force, the Ohio State Highway Patrol and Scioto County Prosecutor Mark Kuhn.
The defendants will appear before a U.S. Magistrate Judge in Cincinnati who will determine whether or not they will be released on bond and schedule dates for future court appearances.
An indictment is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
A list of those charged is below.
United States v. Shawn Shank, et al.
PORTSMOUTH RESIDENTS CHARGED
Jackie Tupper, 20
Josh Walls, 33
Jerry Walls, 61
Conna Mounts, 55
Darryl Smith, aka “Slim”, “June”, 25
Brandon Jackson, 37
Robert Garmany, aka “Black Rob”, 35
Keith Goodwin, aka “Unc”, 58
Jeanette Jennings, 34DAYTON AREA RESIDENTS CHARGED
Shawn Shank, aka “Red,” 37, Dayton
Michael Shank, aka “P.J.” “No-No”, 42, Moraine
Stevie Parson, aka “Will”, 44, Dayton
Aaron Knolton, aka “Lil No No”, “Youngin”, 24, Dayton
Kendall Mabry, aka “Tweety Bird”, 29, Dayton
Porsha Smith, 24, Dayton
Vita Williams, 34, Dayton
Stephone McGhee, 36, DaytonOTHER
Tara Loehner, 24, LancasterGovernment Contractor Pleads Guilty to Major Government FraudRead the Press Release
Unlawfully Obtained $4.4 Million In Contracts Intended For Disadvantaged Small Businesses
ALEXANDRIA, Va. – Michael Brian Dunkel, 59, of Merritt Island, Fl., pleaded guilty today to fraudulently obtaining more than $4.4 million in government contract payments that should have gone to disadvantaged small businesses.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; National Aeronautics and Space Administration (NASA) Inspector General Paul K. Martin; Small Business Administration (SBA) Inspector General Peggy E. Gustafson; Defense Criminal Investigative Service (DCIS) Special Agent in Charge of Mid-Atlantic Field Office Robert E. Craig; General Services Administration (GSA) Inspector General Brian D. Miller; and Department of Homeland Security (DHS) Deputy Inspector General Charles K. Edwards made the announcement after the plea was accepted by United States District Judge Claude M. Hilton.
Dunkel was charged by criminal information on May 23, 2013, with one count of major government fraud. Dunkel faces a maximum penalty of 10 years in prison when he is sentenced on October 4, 2013. As part of his plea agreement, Dunkel has agreed to forfeit $2.9 million.
According to court documents, Dunkel admitted that in 2005, he learned that Keith Hedman, an executive at an Arlington-based security service consulting company referred to as Company A in court records, illegally controlled Company B, another Arlington-based security service consulting company. Company B was a participant in the SBA “Section 8(a)” program, which enables certain small businesses to receive sole-source and competitive-bid contracts set aside for minority-owned and disadvantaged small businesses. Although Hedman controlled Company B, Company B had obtained its 8(a) status based on the disadvantaged status of Dawn Hamilton, its nominal owner.
Dunkel admitted that he agreed to pay Hedman and Company B a fee in exchange for Company B allowing Dunkel to use its 8(a) status to obtain NASA and other U.S. government contracts. Although Company B was required to perform at least 50% of the work on the contracts and had represented it would do so, no Company B employees actually performed any work. Instead, Dunkel and others did all of the work as independent contractors, but they concealed that fact from the government agencies. In addition, Dunkel submitted fraudulent proposals and invoices to hide their scheme, used a third-party company’s Federal Employer Identification Number to prevent reporting of his contractor income to the IRS, and did not pay any income taxes on the income he received from Company B.
Seven defendants, including Hedman and Hamilton, have previously pleaded guilty in connection with the government contracting fraud scheme and a related bribery scheme.
This case is being investigated by NASAOffice of the Inspector General (OIG), the SBA -OIG, DCIS-OIG, GSA-OIG, DHS-OIG, and with assistance from the Defense Contract Audit Agency. Assistant U.S. Attorneys Chad Golder and Ryan Faulconer, a former Trial Attorney for the Criminal Division’s Fraud Section, are prosecuting the case on behalf of the United States.
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.Glenham Man Pleads Guilty to Distribution of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that Randall Murray, age 50, of Glenham, South Dakota appeared before U.S. District Judge Charles B. Kornmann on May 20, 2013 and pled guilty to Count II of the Indictment that charged him with Distribution of a Controlled Substance.
The maximum penalty upon conviction is 5 years of imprisonment, a $250,000 fine, or both; 2 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an incident wherein Murray, on or about June 24, 2011, did knowingly and intentionally distribute marijuana, a Schedule I controlled substance.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Murray was released on bond pending sentencing which has been set for September 23, 2013.
Frank Xavier Manyen and Julie Ann Rozell Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 22, 2013, before U.S. District Judge Donald W. Molloy, FRANK XAVIER MANYEN, a 32-year-old resident of Laurel, and JULIE ANN ROZELL, a 38-year-old resident of Billings, appeared for sentencing.
MANYEN was sentenced to a term of:
Prison: 60 months
Special Assessment: $100
Community Service: 400 hours
Supervised Release: 4 years
ROZELL was sentenced to a term of:
Prison: 57 months
Special Assessment: $100
Community Service: 400 hours
Supervised Release: 5 years
They were sentenced in connection with their guilty pleas to conspiracy to possess with intent to distribute and distribution of methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
In October of 2010, the FBI Safe Streets Task Force (BSSSTF) received information about a large scale methamphetamine distribution organization operating in Yellowstone County.
In the spring of 2011, law enforcement began performing electronic surveillance on C.M., an individual living in Billings. Investigators discovered that C.M., D.M. and A.H. began supplying the larger methamphetamine organization in late 2010 with methamphetamine after the prior source of supply had a run in with law enforcement. C.M., D.M. and A.H., had several distributors that sold the methamphetamine for the organization. One of the distributors was ROZELL. ROZELL admitted to distributing approximately four pounds of methamphetamine for the organization. One of her distributors was MANYEN.
During the investigation law enforcement learned that MANYEN was a distributor of methamphetamine for ROZELL from approximately March 2011, and continuing thereafter until late January 2012. MANYEN worked with Heather Manyen to distribute the methamphetamine obtained from ROZELL - MANYEN and Heather Manyen together distributed the methamphetamine they obtained from ROZELL in the greater Billings area. MANYEN and Heather Manyen obtained approximately 700 grams of methamphetamine from ROZELL, which they in turn distributed to their own customers.
Heather Manyen pled guilty to federal charges and is awaiting sentencing.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that they will likely serve all of the time imposed by the court. In the federal system, they do have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Billings Big Sky Safe Streets Task Force and High Intensity Drug Trafficking Area (HIDTA) Task Force.
Four Men Indicted for Using Stolen Information to File over 1,000 False Tax Returns That Claimed RefundsRead the Press Release
MINNEAPOLIS—Recently in federal court, four men were indicted for using stolen identification information to file tax returns that claimed false refunds. On May 21, 2013, Frantz Pierre, Ronnie Bussell, Christopher Torh, and Junior Tervil were charged with one count of conspiracy to defraud the United States. Pierre was also charged with one count of money laundering.
The indictment alleges that from July 2010 to May 2011, the defendants conspired with each other and others to defraud the Internal Revenue Service (“IRS”) by seeking tax refunds for which they were not entitled. Allegedly, the co-conspirators obtained the personal identifiers of other people and used that information, without those people’s knowledge, to create false 2009 and 2010 federal income tax returns that claimed refunds. In addition, the co-conspirators reportedly created false W-2 forms showing fabricated amounts of earnings and tax withholdings. The co-conspirators allegedly filed approximately 1,066 false tax returns, claiming approximately $6.9 million in fraudulent refunds.
The indictment also alleges that in order to receive the tax refunds, Pierre, Bussell, Torh, Tervil, and others created and established fictitious businesses in Minnesota that purportedly were involved in the preparation of income tax returns. The co-conspirators reportedly recruited others in Minnesota and elsewhere to do the same. Then, bank accounts were allegedly opened for each of the fake businesses, and the tax refunds were electronically deposited into those accounts. Finally, the Indictment alleges Pierre used some of the funds derived from this fraud scheme to purchase a residence in Parkland, Florida.
If convicted, the defendants face a potential maximum penalty of ten years in prison on the conspiracy count, and Pierre faces an additional potential maximum penalty of ten years on the money laundering count. Any sentence would be determined by a federal district court judge.
This case is the result of an investigation by the IRS-Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Karen B. Schommer.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial. Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.Four Men Arrested and Detained in IRS InvestigationRead the Press Release
Arrests are Part of IRS’s Stolen Identity Refund Fraud (SIRF) Initiative
DALLAS — Four individuals remain in federal custody on charges related to their involvement in a scheme to obtain and use stolen identities to steal federal income tax refunds. The four men, Michael Hutchinson Agu, 38, of Murphy, Texas; Benjamin Kinyua, 34, of Plano, Texas; Thomas Nganga Muya, of Atlanta, Georgia; and Harry Fabrice Cheickh Amont, 29, of Lithonia, Georgia; were arrested in an operation conducted by special agents with Internal Revenue Service Criminal Investigation (IRS-CI). They have all made their initial appearances before a U.S. Magistrate Judge, where identifying information was provided, and have been detained pending further order of the Court. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Agu and Kinyua are each charged, in separate complaints, with identity theft, theft of government funds and aiding and abetting. A separate complaint charges Muya and Amont with theft of government funds and aiding and abetting.
According to the affidavits filed with the complaints, in recent years, identification theft schemes have become more sophisticated, more prevalent and increasingly more popular with criminals as a way to obtain illegal funds with little risk of detection or prosecution. Identification theft schemes often involve a network of individuals needed to complete different stages or aspects of the scheme. The affidavits further note that often perpetrators of identity theft cases are securing false identities, filing false tax returns, securing false tax refunds and moving on within days or weeks. Many of the ID theft schemes involve foreign nationals operating within and outside of the U.S, according to the affidavits.
According to the affidavits filed with the complaints, in recent years, identification theft schemes have become more sophisticated, more prevalent and increasingly more popular with criminals as a way to obtain illegal funds with little risk of detection or prosecution. Identification theft schemes often involve a network of individuals needed to complete different stages or aspects of the scheme. The affidavits further note that often perpetrators of identity theft cases are securing false identities, filing false tax returns, securing false tax refunds and moving on within days or weeks. Many of the ID theft schemes involve foreign nationals operating within and outside of the U.S, according to the affidavits.
The complaints outline the fencing of stolen IRS refund checks, including a United States Treasury check for an IRS refund in the amount of almost $600,000 that was were obtained using stolen identification information. The defendants worked as brokers or check cashers –cashing these checks for a percent of their face value.
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The penalty, upon conviction, for the charged offense of identity theft is 15 years in federal prison and a $250,000 fine. The penalty, upon conviction, for the charged offense of theft of government funds is 10 years in federal prison and a $250,000 fine.
IRS-CI is investigating. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
Fort Pierre Man Pleads Guilty to Failure to AppearRead the Press Release
United States Attorney Brendan V. Johnson announced that Brent Flood, age 24, of Fort Pierre, South Dakota appeared before U.S. District Judge Roberto A. Lange on May 20, 2013 and pled guilty to the Indictment that charged him with Failure to Appear.
The maximum penalty upon conviction is 5 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release; an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an incident wherein Flood, who was indicted by a federal grand Jury in September 2012 for two counts of Distribution of a Controlled Substance, did not show up for his change of plea scheduled for January 22, 2013. Flood knew he was required to appear for this proceeding, but failed to appear as directed. He was later apprehended.
The investigation was conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Flood was remanded to the custody of the U.S. Marshals Service pending sentencing which has been set for July 9, 2013.
Fort Myers Man Sentenced to Life in Prison for Selling HeroinRead the Press Release
Fort Myers, Florida - U.S. District Judge John E. Steele sentenced Epifanio H. Benitez (61, Fort Myers) yesterday to life in federal prison for selling heroin within 1,000 feet of Lee Middle School. The court also sentenced Benitez to a concurrent term of 15 years in prison for three counts of selling heroin, and one count of possessing ammunition as a convicted felon. Based on his multiple prior drug convictions, Benitez was sentenced as an armed career criminal. Benitez pleaded guilty on March 4, 2013.
According to court documents, between May and November 2011, Benitez was involved in seven drug transactions with undercover law enforcement. He sold heroin on four occasions to undercover detectives from the Fort Myers Police Department. He sold heroin on three occasions to undercover detectives from the Lee County Sheriff's Office. Benitez sold the heroin within 1,000 feet of Lee Middle School during four of the transactions.
A subsequent search warrant was executed at Benitez’s residence, culminating in his arrest. Among the items seized during the execution of the search warrant were forty-six rounds of .40 S&W ammunition found in Benitez’s bedroom. As a previously convicted felon, Benitez is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Fort Myers Police Department, the Lee County Sheriff's Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent In Charge, ATF Tampa Field Division, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Former Texas Police Officer Ordered to Federal Prison for Deprivation of Civil RightsRead the Press Release
Frank Carter, 43, a former officer with the Laredo, Texas, Police Department (LPD), has been sentenced to prison following his conviction for violating the civil rights of an arrestee, announced Assistant Attorney General for the Civil Rights Division Thomas E. Perez and U.S. Attorney Kenneth Magidson. Carter pleaded guilty on Thursday, March 7, 2013.Today, U.S. District Judge Diana Saldana, who accepted the guilty plea, handed Carter a sentence of a year and a day in federal prison to be immediately followed by one year of supervised release. In handing down the sentence, Judge Saldana commended Carter for accepting responsibility for his actions. Carter will also have to complete 75 hours of community service in the first six months following his release from prison.
Carter admitted that on May 26, 2012, while using his authority as a LPD officer, he struck a male victim who was handcuffed and detained in the backseat of Carter’s patrol car. Carter admitted he struck the victim several times.
According to information presented in court at the time of the plea, rear facing dash camera audio and video recordings revealed Carter had yelled obscenities at the victim while he punched the victim in the head and body. Carter also repeatedly slammed the victim’s face into the back of the seat. The victim remained handcuffed during the entire incident and never resisted or attempted to harm Carter.
Carter 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 case was investigated by the LPD, FBI and Texas Rangers. Civil Rights Division Trial Attorneys Ryan Murguia and Christopher Lomax and Assistant U.S. Attorney Ruben R. Perez prosecuted the case.
Former Sheppard Air Force Base Employees and Contractors Sentenced for Conspiring to Unlawfully Disclose and Obtain Sensitive Government Contract InformationRead the Press Release
DALLAS — Three of the four individuals who pleaded guilty last year to their roles in a conspiracy to unlawfully disclose and obtain sensitive government contract information, were sentenced today in federal court in Dallas by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
U.S. Attorney Saldana said, “The public deserves to have absolute confidence that government employees are honest and above reproach in their dealings with government funds and private contractors. This prosecution sends a strong message that they will be held accountable for their betrayal of the public trust.”
John Torrance Gilmore, III, 53, of Wichita Falls, who was the Lead Supervisory Engineer at Sheppard Air Force Base (SAFB), and the most culpable in the scheme, was sentenced to 60 months in federal prison. He pleaded guilty to one count of conspiring to defraud the U.S. and conspiring to unlawfully disclose sensitive source information.
Another former employee at SAFB, Larry Thomas Ballard, 60, also of Wichita Falls, pleaded guilty to the same offense and is scheduled to be sentenced on July 19, 2013.
Two government contractors, John Carmon Freeman and Miguel Angel Hughes, were sentenced to 18 months and eight months, respectively. Each pleaded guilty to one count of conspiring to defraud the U.S. and conspiring to unlawfully obtain sensitive source information.
In addition, Judge O’Connor ordered that Gilmore and Hughes pay $6,095 restitution to the Department of Defense. All three defendants must surrender to the Bureau of Prisons on June 20, 2013.
As the Lead Civil Engineer in the Civil Engineering Squadron’s engineering department, Gilmore supervised several engineers, including Ballard. The Squadron’s mission was to maintain SAFB facilities and provide civil engineering support to the base.
Hughes, 63, of Fort Worth, Texas, owned Hughes and Guzman Construction Services, LLC, (Hughes Building Services), a roofing contractor and subcontractor with offices in Fort Worth, Dallas and Balch Springs, Texas. Freeman, 50, of Vernon, Texas, owned Freeman Construction, a road-building and paving contractor, with offices in Wichita Falls and Vernon.
The four defendants conspired together to impair and obstruct the government’s ability to have a competitive and unbiased selection of contractors — depriving the government of its right to exclusive use and control over sensitive source selection information, to include contractor bid information, government pricing and cost estimates and contractor proposal information. The defendants conspired together to knowingly disclose and obtain sensitive source selection information related to several contracts’ specifications, including those for roof and pothole repairs and the liquid oxygen maintenance facility.
According to plea documents filed in the case, the defendants conspired together and with others during the period from at least the mid 1990's through 2009, to defraud the 82nd Contracting Squadron and the Department of the Air Force by depriving the U.S. of the lawful right to exclusive use and control over sensitive source selection information, such as contractor bid information, government pricing and cost estimates, and contractor proposal information, on several contracts. They also conspired together and with others to disclose or obtain sensitive source selection information on several contracts.
Gilmore and Ballard provided sensitive source information to their friends, Freeman and Hughes, to give them a competitive advantage or financial benefit in connection with several government contracts. Over several years, Freeman and Hughes gave Gilmore and Ballard personal gifts and benefits in return for their preferential treatment in connection with several government contracts.
In the mid to late 1990's, Freeman paid large sums of cash to Gilmore. Gilmore supervised several government inspectors who inspected Freeman’s work and Freeman felt it would be good to keep Gilmore happy so that he would continue to treat Freeman favorably. On at least one occasion, Freeman gave $10,000 in cash to Gilmore, expecting Gilmore to accept and approve Freeman’s work on future government contracts, even if there were discrepancies and deficiencies in Freeman Construction’s contract work. In addition, to curry favor with Gilmore, Hughes took him to several gun shows and paid his travel expenses.
When Gilmore became aware of this criminal investigation, he told Freeman to lie about his cash payments to him. After initially lying about them to investigators, Freeman later admitted that he had paid cash bribes to Gilmore.
The investigation was conducted by the Defense Criminal Investigative Service and the Air Force Office of Special Investigations.
Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
Former Postal Worker Pleads Guilty to Stealing Packages, One with GunsRead the Press Release
FLORENCE – A former U.S. Postal worker pleaded guilty Wednesday in federal court to conspiracy and mail theft in connection with a scheme to redirect packages, including one containing 11 handguns, to an accomplice, announced U.S. Attorney Joyce White Vance and Postal Service, Office of Inspector General, Executive Special Agent in Charge Max Eamiguel.
RODNEY DEWAYNE CLARK, 34, of Birmingham, entered his plea before U.S. District Judge Inge P. Johnson to one count of conspiracy to defraud the United States and two counts of theft of mail by an officer or employee of the Postal Service. Clark is scheduled for sentencing Aug. 22.
According to court records, Clark worked at the Postal Service's Birmingham Distribution Center handling and directing mail in June 2012 when he conspired with an associate, Daltery Robinson of Birmingham, to embezzle packages by affixing new mailing labels to them and redirecting them to his associate's home.
Clark notified Robinson by text message or phone call of the pending delivery of embezzled mail. On June 7, 2012, according to court records, Clark sent a text message about a stolen package he was redirecting to Robinson's address, which contained 11 Jimenez handguns. The text read: "Got one comn pow pow $ROCAFELLAS$." That package had been addressed to Gold Star Pawn in Bessemer.
Once the packages were delivered to Robinson, Clark would pay him $200 for each package, according to court records.
Robinson pleaded guilty in November to one count of theft or receipt of mail matter.
Former Nanny Receives 102 Months in Prison for Murdering 9-Month-Old in Her CareRead the Press Release
ALEXANDRIA, Va. – Amy Hunter, age 27, of Longview, Washington, was sentenced today to 102 months in prison, followed by three years of supervised release, for the murder of a nine-month-old baby that was in her care.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia and Michael T. Monroe, Special Agent In Charge Naval Criminal Investigative Service (NCIS) made the announcement after sentencing by United States District Judge Anthony J. Trenga.
Hunter previously pleaded guilty on January 16, 2013.
According to court documents, the defendant admitted that on April 26, 2011, in her home on the Quantico United States Marine Corps Base, she murdered C.P., a child of nine- months-of-age. The defendant had been providing daily care for C.P. and the defendant’s own daughter in her home on Quantico Marine Base which she shared with her husband, an active-duty Marine.
The court documents further state that at approximately 9:23 a.m., Hunter placed a 911 call reporting that C.P. had hit her head and lost consciousness. C.P. was airlifted to Inova Fairfax Hospital where she was placed on life support. C.P. had severe traumatic brain injuries, including cerebral edema, subdural hemorrhages, numerous occipital fractures, and significant, diffuse retinal hemorrhages. The hospital also identified a healing rib fracture that they believed was more than three weeks old.
C.P. never regained consciousness and was removed from life support on the morning of April 28, 2011. The lead physician determined that, in his opinion, C.P.’s death was due to the results of a combination of blunt force trauma, due to an impact to the back of the head, and violent rotational head trauma, such as from shaking. An autopsy conducted by an Assistant Chief Medical Examiner for the Commonwealth of Virginia found the cause of C.P.’s death was craniocerebral and spinal cord injuries and the manner of death a homicide.
In an interview, the defendant admitted that she repeatedly shook C.P., and caused C.P.’s head to strike the wall because C.P. was screaming. The defendant also admitted she shook C.P. on a separate occasion approximately three weeks earlier.
This case was investigated by NCIS. Assistant United States Attorney Patricia Haynes and Special Assistant United States Attorney Stacey Luck are prosecuting the case on behalf of the United States.
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.usdoj.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 http://pacer.uspci.uscourts.gov.
Former Laredo Police Officer Ordered to Federal Prison for Deprivation of Civil RightsRead the Press Release
LAREDO, Texas – Frank Carter, 43, a former officer with the Laredo Police Department (LPD), has been sentenced to prison following his conviction for violating the civil rights of an arrestee, United States Attorney Kenneth Magidson announced today along with Assistant Attorney General for the Civil Rights Division Thomas E. Perez. Carter pleaded guilty on Thursday, March 7, 2013.
Today, U.S. District Judge Diana Saldana, who accepted the guilty plea, handed Carter a sentence of a year and a day in federal prison to be immediately followed by one year of supervised release. In handing down the sentence, Judge Saldana commended Carter for accepting responsibility for his actions. Carter will also have to complete 75 hours of community service in the first six months following his release from prison.Carter admitted that on May 26, 2012, while using his authority as a LPD officer, he struck a male victim who was handcuffed and detained in the backseat of Carter’s patrol car. Carter admitted he struck the victim several times.
According to information presented in court at the time of the plea, rear facing dash camera audio and video recordings revealed Carter had yelled obscenities at the victim while he punched the victim in the head and body. Carter also repeatedly slammed the victim’s face into the back of the seat. The victim remained handcuffed during the entire incident and never resisted or attempted to harm Carter.
Carter 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 case was investigated by the FBI, Texas Rangers and LPD. Assistant United States Attorney Ruben R. Perez and Civil Rights Division Trial Attorneys Ryan Murguia and Christopher Lomax are prosecuting the case.Former Lake County Man Sentenced to More Than Six Years in Prison for $1.6 Million Investment Fraud SchemeRead the Press Release
CHICAGO – A former Lake County man was sentenced today to more than six years in federal prison for cheating at least 20 victims of approximately $1.6 million in an investment fraud scheme. The defendant, WILLIAM BLOCK, promised investors substantial profits, in some cases up to 300 percent returns over just six months, and instead used the money to finance a lavish lifestyle.
Block, 54, formerly of Lake Forest, who has been in custody since he was arrested in November 2008, was sentenced to 75 months in prison by U.S. District Judge Harry Leinenweber. Block was also ordered to forfeit approximately $1.6 million, as well as to pay restitution totaling approximately $1.9 million, which also includes the proceeds of a separate $300,000 bank fraud. Block did not admit guilt but was found guilty by Judge Leienweber earlier this month after conceding that the government could provide him guilty.
The government’s proof established that between May 2002 and November 2008, Block operated an investment fraud scheme in which he falsely told at least 20 individual investors that if they gave him money, ranging from tens of thousands to hundreds of thousands of dollars, he could pay fees and costs to recover certain monies to which he was entitled and the investor would reap a financial reward. As a result, Block fraudulently obtained about $1.6 million from his victims.
In fact, Block’s representations were bogus, and he converted the victims’ funds for a variety of personal and living expenses, including cigars, limousine services, clothing, travel, wine, and a trip on a private plane to view a yacht that he represented he was considering for purchase.
As relevant conduct at sentencing, the government also established that Block engaged in a separate bank fraud scheme in 2007, by using a $300,000 check that he knew had ‘bounced,’ and then using at least $190,000 of the proceeds to obtain an official check from AmCore Bank. He used the proceeds from that official check for a variety of personal expenses, including cigars, a $2,600 watch, rounds of golf, and payments to a girlfriend.
The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The government was represented by Assistant U.S. Attorneys Kaarina Salovaara and Jessica Romero.
The case falls under the umbrella of the Financial Fraud Enforcement Task Force, which 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. For more information on the task force, visit: StopFraud.gov.