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Tuesday 21 May 2013
Nashville Resident Sentenced for Filingfalse Tax ReturnsRead the Press Release
James Robert Sanford, 53, of Nashville, formerly of Clarksville, Tenn., was sentenced yesterday by Chief U.S. District Judge William J. Haynes, Jr. to serve 13 months in prison followed by a three year term of supervised release, for filing false tax returns, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
Sanford was also ordered to pay $78,822.00 in restitution to the United States.
Sanford pleaded guilty to filing false tax returns on January 14, 2013, and admitted that for tax years 2006 and 2007 he had prepared and filed false income tax returns on behalf of himself and his spouse and had assisted 18 other individuals in preparing and filing 26 income tax returns, which fraudulently claimed tax refunds.This case was investigated by the IRS-Criminal Investigation. Assistant U.S. Attorney Darryl A. Stewart represented the government.
Mt. Morris Man Charged in Child Pornography CaseRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Patrick Welch, 57, of Mt. Morris, N.Y., was arrested and charged by criminal complaint with possession, receipt and distribution of child pornography. In this case, possession of child pornography carries a mandatory minimum penalty of 10 years in prison, a maximum of 20 years, and a fine of $250,000. Receipt and/or distribution of child pornography carries a mandatory minimum penalty of 15 years in prison, a maximum of 40 years, and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that according to the complaint, on May 13, 2013, the Livingston County Sheriff's Office received a lead from the Los Angeles County Sheriff's Office concerning a potential child exploitation case. A Los Angeles County Sheriff's investigator received a cyber tip from the National Center for Missing and Exploited Children that two individuals appeared to be chatting about and trading child pornography on the internet site tagged.com. Both individuals purported to be teenaged boys. One of the individuals chatting used the screen name "David D" who provided an email address.
A search warrant was executed on the provided email account and several images of child pornography were found. The internet protocol address for "David D" was registered to Welch's address on Scipio Road in Mt. Morris. After a search warrant was executed at Welch's residence this morning, a forensic preview of one of Welch's computers was conducted and several images of child pornography were found.
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 criminal complaint is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the Livingston County Sheriff's Office under the direction of Undersheriff Jim Szczesniak and the Los Angeles County Sheriff's Department, under the direction of Sheriff Leroy D. Baca.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Most Wanted “Deadbeat Parent” Sentenced to 31 Months’ Imprisonment for Fleeing to Evade over $1 Million in Child Support ObligationsRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, Robert D. Sand, the nation’s “Most Wanted Deadbeat Parent” according to law enforcement, was sentenced to 31 months in prison followed by one year of supervised release by United States District Judge Joseph F. Bianco. Sand previously pleaded guilty to two counts of traveling in interstate and foreign commerce with the intent to evade court ordered child support obligations totaling over $1 million including interest and penalties. Sand was also sentenced to restitution in the amount of his unpaid support obligations – $903,789.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Thomas O’Donnell, Special Agent in Charge of the New York Regional Office, Office of the Inspector General, United States Department of Health and Human Services (OIG-DHHS), and Charles Dunne, United States Marshal for the Eastern District of New York.
At the time of his plea, Sand admitted that he initially relocated from New York to Florida and then fled the United States in order to evade his support obligations following the issuance of arrest warrants in both state and federal court in 2000 and 2002. Sand further admitted that he had spent much of the past decade in the Kingdom of Thailand where he operated a business. Sand was arrested in late November 2012, upon entering the Republic of the Philippines from Thailand without proper identification documents, and on December 17, 2012, he was deported to Los Angeles, where he was taken into custody by deputies of the United States Marshals Service. During the time Sand was a fugitive, his support obligations continued to grow. At the time of his arrest, Sand owed more than $1 million in back child support including interest and penalties.
According to a complaint filed in federal court on April 8, 2002, the New York State Family Court in Nassau County issued an arrest warrant for Sand on November 22, 2000, following multiple contempt findings against him in child support proceedings. A federal arrest warrant was issued for Sand on April 8, 2002. On September 17, 2009, an indictment was filed in federal court in the Eastern District of New York charging Sand with two counts of failure to pay child support, and on February 17, 2010, a second federal warrant was issued for Sand’s arrest.
“Robert Sand literally fled the country to avoid his obligation to the children he brought into this world. But law enforcement did not turn their back on those children and what they were due. This Father’s Day will find Sand behind bars, finally being held to account for his abandonment. The sentence imposed today sends a message to those who would flee their lawful child support obligations that we will prosecute them to the fullest extent of the law,” stated United States Attorney Lynch. “As this investigation and prosecution demonstrate, flight from prosecution may delay, but will not deny justice.” Ms. Lynch expressed her grateful appreciation to the Office of the Inspector General, United States Department of Health and Human Services and the United States Marshals Service for their assistance in this case.
In January 2012, OIG-DHHS launched a child support enforcement web page (http://oig.hhs.gov/fraud/child-support-enforcement/) to seek the public’s help in ongoing federal efforts to bring fugitive “deadbeat parents” to justice. Sand was listed on the site as the number one “Most Wanted Deadbeat Parent” based upon his child support obligations totaling more than $1 million.
The government’s case was prosecuted by Assistant United States Attorney Allen Bode.
The Defendant:
Name: ROBERT D. SAND
Age: 51Members of International Sex Trafficking Ring IndictedRead the Press Release
Arturo Rojas-Coyotl, Odilon Martinez-Rojas, and Severiano Martinez-Rojas, all of Tenancingo in the state of Tlaxcala, Mexico have been indicted on charges of sex trafficking and alien harboring, announced the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Georgia. A fourth man, Daniel Garcia-Tepal, also of Tlaxcala, Mexico, is charged with encouraging and inducing aliens to enter and reside in the United States unlawfully.
According to U.S. Attorney Yates, the charges and other information presented in court: Rojas-Coyotl and his uncles Odilon Martinez-Rojas and Severiano Martinez-Rojas used force, fraud and coercion to compel three women to engage in prostitution in Atlanta and Norcross, Ga. at various times between 2006 and 2008. Daniel Garcia-Tepal and Arturo Rojas-Coyotl are also charged with encouraging and inducing a fourth woman to unlawfully enter and remain in the United States between 2010 and 2013.
Special Agents of the FBI and ICE Homeland Security Investigations arrested Arturuo Rojas-Coyotl, Odilon Martinez-Rojas, and Daniel Garcia-Tepal in a highly coordinated law enforcement sweep today. Severiano Martinez-Rojas remains a fugitive and is believed to be in Mexico. The FBI will coordinate with its legal attaché in Mexico City to affect his arrest and subsequent extradition back to the U.S. Four search warrants were also executed today in Atlanta and Norcross, Ga. in conjunction with the arrests.
Rojas-Coyotl, 26, Martinez-Rojas, 41, Martinez-Rojas, 48, and Garcia-Tepal, 28, are scheduled for arraignment today. Each sex trafficking charge carries a maximum sentence of life in prison while each alien harboring charge has a maximum sentence of 10 years in prison, with all counts carrying a fine of up to $250,000 each. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case is being investigated by Special Agents of the FBI and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Interagency cooperation in international sex trafficking operations is imperative and vital to the success of the prosecution.
Assistant U.S. Attorney Susan Coppedge and Trial Attorney Benjamin Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Anyone with information related to sex trafficking should call the Atlanta FBI hotline at 404-679-9000 or the National Human Trafficking Resource Center at 1-888-3737-888.
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.
Members of International Sex Trafficking Ring IndictedRead the Press Release
Victims Brought to Atlanta and Southeast from Mexico and Guatemala
ATLANTA - Arturo Rojas-Coyotl, Odilon Martinez-Rojas, and Severiano Martinez-Rojas, all of Tenancingo in the state of Tlaxcala, Mexico have been indicted on charges of sex trafficking and alien harboring. A fourth man, Daniel Garcia-Tepal, also of Tlaxcala, Mexico, is charged with encouraging and inducing aliens to enter and reside in the United States unlawfully.
“Sex trafficking is a malicious crime whether the victims are American citizens or foreign nationals,” said United States Attorney Sally Quillian Yates. “The defendants are charged with preying on young women from Mexico and Guatemala, smuggling them into the United States under false pretenses, and forcing them into prostitution. U.S. laws protect all trafficking victims, and we will prosecute those who engage in this practice.”
“The enslavement of women forced into prostitution is a heinous crime that occurs all too frequently in our communities,” said Brock D. Nicholson, Special Agent in Charge of ICE Homeland Security Investigations in Atlanta. “Across the country, law enforcement agencies from the federal to the local level are teaming up to identify, arrest and prosecute those who seek to profit at the expense of the suffering of others. This case could not have happened without the excellent relationships we have with the FBI and the U.S. Attorney for the Northern District of Georgia.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Today’s indictments and subsequent arrests are a continuation of the federal law enforcement effort to stem the international trafficking of individuals to fuel the commercial sex industry here in the U.S. and in particular in Atlanta. The FBI asks that anyone with information regarding this type of activity to contact their nearest FBI field office immediately.”
According to United States Attorney Yates, the charges and other information presented in court: Rojas-Coyotl and his uncles Odilon Martinez-Rojas and Severiano Martinez-Rojas used force, fraud and coercion to compel three women to engage in prostitution in Atlanta and Norcross, Ga. at various times between 2006 and 2008. Daniel Garcia-Tepal and Arturo Rojas-Coyotl are also charged with encouraging and inducing a fourth woman to unlawfully enter and remain in the United States between 2010 and 2013.
Special Agents of the FBI and ICE Homeland Security Investigations arrested Arturuo Rojas-Coyotl, Odilon Martinez-Rojas, and Daniel Garcia-Tepal in a highly coordinated law enforcement sweep today. Severiano Martinez-Rojas remains a fugitive and is believed to be in Mexico. The FBI will coordinate with its legal attaché in Mexico City to affect his arrest and subsequent extradition back to the United States. Four search warrants were also executed today in Atlanta and Norcross, Ga. in conjunction with the arrests.
Rojas-Coyotl, 26, Martinez-Rojas, 41, Martinez-Rojas, 48, and Garcia-Tepal, 28, are scheduled for arraignment today. Each sex trafficking charge carries a maximum sentence of life in prison while each alien harboring charge has a maximum sentence of 10 years in prison, with all counts carrying a fine of up to $250,000 each. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case is being investigated by Special Agents of the Federal Bureau of Investigation and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Interagency cooperation in international sex trafficking operations is imperative and vital to the success of the prosecution.
Assistant United States Attorney Susan Coppedge and Trial Attorney Benjamin Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Anyone with information related to sex trafficking should call the Atlanta FBI hotline at 404-679-9000 or the National Human Trafficking Resource Center at 1-888-3737-888.
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.
Melvin Jeovany Vasquez Pleads Guilty to Illegal ReentryRead the Press Release
MELVIN JEOVANY VASQUEZ, age 30, a citizen of Honduras pled guilty in federal court today before U. S. District Judge Jay C. Zainey to a one-count indictment charging him with illegal re-entry of a removed alien, announced U.S. Attorney Dana J. Boente.
According to court documents, VASQUEZ admitted to being an alien who had previously been removed from the United States, was found in the United States, on April 7, 2013, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
The indictment charging VASQUEZ with illegal reentry also included a notice of sentencing enhancement based on his prior felony conviction. With the enhancement, the charge carries a maximum statutory penalty of ten (10) years imprisonment, a fine of $250,000, and three (3) years of supervised release following any term of imprisonment. Sentencing for the defendant is scheduled for August 20, 2013 at 10:00 A.M.
This case was investigated by United States Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE) as part of Operation Safe Neighborhood. The prosecution is being handled by Special Assistant United States Attorney Robert Weir.
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Media AdvisoryRead the Press Release
FOR PLANNING PURPOSES ONLY
TUESDAY, MAY 21, 2012
*******MEDIA ADVISORY*******The U.S. Attorney for the Northern District of Alabama, along with the FBI, IRS Criminal Investigation Division, the Jefferson County Sheriff’s Office and other law enforcement agencies will hold a press conference today to announce arrests in a large-scale narcotics trafficking investigation in western Birmingham and Jefferson County.
WHAT: Press conference
WHEN: Today
2:30 P.M.
WHERE: U.S. Attorney’s Office
1801 Fourth Ave. North
Birmingham, AL 35203
2nd Floor Conference RoomMedia should arrive about 30 minutes before the press conference to set up.
NOTE: All media must have photo identification and valid media credentials. For additional information, contact Peggy Sanford at 205-244-2020, or [email protected].
Martin Lloyd Old Horn Arraigned and Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on May 21, 2013, before U.S. District Judge Sam E. Haddon, MARTIN LLOYD OLD HORN, a 22-year-old resident of Hardin, was arraigned and pled guilty to mail fraud - scheme to defraud or to obtain money or property by false promises. Sentencing has been set for September 10, 2013. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
The Crow Tribal Historic Preservation Office (CTHPO) Is a designated office of the Crow Indian Tribe that provides for direct Tribal involvement and leadership in the protection and enhancement of Crow lands and cultural resources. It serves to identify, inventory, and protect culturally, archeologically, and historically important resources both on and off the reservation.
Each year, the CTHPO receives grant funds from the National Park Service, U.S. Department of the Interior. A requirement for any enterprise seeking to do work on the reservation that may disturb tribal lands - utilities, construction, energy exploration, development - is that the business employ the services of a CTHPO employee (archeological technician) to monitor the project to insure that lands of cultural or historic importance are not destroyed. The company is then charged for this monitoring service and payments are made to the Crow Tribe.
During the summers of 2010 and 2011, either before leaving for or while home from school at the University of Montana (UM), OLD HORN, at the urging and instigation of his mother and other family members, represented himself to be a monitor for the Crow Tribe Historical Preservation Office. He had no training for the position, had not been hired by the Crow Tribe to be a tribal monitor, and had no authority other than the direction of his family to engage in the business of being a tribal monitor.
During 2010, the evidence would have reflected that the invoices to companies for direct payment to OLD HORN, for his purported services, were submitted by his mother. During 2011, the time period alleged in the indictment, the evidence indicates that OLD HORN submitted invoices for his purported services directly. OLD HORN billed on an hourly basis and always billed for an entire day. The evidence would show that OLD HORN was usually in the company of his mother or cousin when on-site, that he made no logs or reports documenting his work or observations as required by legitimate monitoring standards, and that on numerous occasions he was not on site for the hours billed to the company. During the time period of the indictment - the two month period in the summer of 2011 - OLD HORN received $19,184.15 in compensation from companies doing business on the Crow Indian Reservation.
In addition, OLD HORN received an additional $24,477 when his mother submitted invoices on his behalf, for a total of $43,661 received on the basis of his billing for services as if a legitimate tribal monitor. The United States maintains that the fraudulent nature of the invoices remains the same whether submitted by OLD HORN or his mother. The United States and OLD HORN have stipulated to one-half of the total amount - $21,830 - as restitution and use in the fraud loss calculation based on the time and service that may have been legitimately rendered.
The companies made their payments to Martin OLD HORN through the U.S. Mail.
OLD HORN faces possible penalties of 20 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the U.S. Department of Interior - Office of Inspector General. # # # #
Manhattan U.S. Attorney Charges Art Dealer with Hiding Millions of Dollars in Income from Fraudulent Sales of ArtworkRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Toni Weirauch, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of GLAFIRA ROSALES, an art dealer, for filing false tax returns and for failing to disclose a foreign bank account to the IRS. ROSALES allegedly failed to report the receipt of at least $12.5 million in income from the sale of works purported to be by celebrated abstract expressionist artists. Most of the income was received in a bank account in Spain that ROSALES hid from, and failed to disclose to, the IRS. She was arrested in Sands Point, New York this morning and will be presented in Manhattan federal court this afternoon before U.S. Magistrate Judge Sarah Netburn.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Glafira Rosales gave new meaning to the phrase ‘artful dodger’ by avoiding taxes on millions of dollars in income from dealing in fake artworks for fake clients. Her arrest shows that no matter how clever the scheme, attempts to hide income from the government to avoid paying taxes on that income will be discovered and prosecuted.”
IRS Special Agent-in-Charge Toni Weirauch said: “The sale of a piece of art for profit is a taxable event and the seller is responsible for paying his or her fair share of tax, even if the art is counterfeit. The allegations in this investigation illustrate a ‘double-barreled’ tax evasion scheme: disguising who was actually selling the art and profiting from the sales, through the creation of a fictitious seller and the use of the name of a collector not associated with the transactions, and further concealing the proceeds by depositing them in an unreported foreign bank account.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, Glafira Rosales committed tax fraud in falsely reporting that she was selling art on behalf of clients. In truth, those clients were just part of the picture she painted to perpetrate her multi-million dollar scheme. There is consistency in the scheme, however: The artwork Rosales sold appears to be as fake as her story about the clients she claimed to represent.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:
In the 1990’s, ROSALES, an art dealer, began selling previously unknown paintings that had never been exhibited before, and that she claimed were painted by some of the most famous artists of the 20th century, including Jackson Pollock, Mark Rothko, and Willem de Kooning. From 2006 through 2008, ROSALES sold approximately one dozen of these paintings to two prominent Manhattan galleries for over $14 million. In selling most of the paintings to the two galleries, she purported to represent a client with ties to Switzerland who had inherited the paintings and wanted to sell them, but who also wished to remain anonymous (the “Purported Swiss Client”). For the remainder of the paintings, she purported to represent a Spanish collector (the “Purported Spanish Collector”). ROSALES also claimed that a portion of the price paid by the Manhattan galleries would be her commission for selling the paintings, and that the remainder would be passed along to her clients.
In contrast to the claims made by ROSALES, the investigation has revealed that:
- experts in the fields of art, art history, and materials science have concluded that at least several of the paintings sold by her are counterfeit;
- the Purported Swiss Client on whose behalf she claimed to sell most of the paintings to the Manhattan galleries never existed;
- the Purported Spanish collector on whose behalf she claimed to sell the remainder of the paintings to the Manhattan galleries never owned the paintings; and
- instead of passing along a substantial portion of the proceeds of the sale of the various paintings, she kept all or almost all of the proceeds, and transferred substantial portions to an account maintained by her then-boyfriend.
ROSALES filed tax returns that falsely claimed she had not kept all, or almost all of the proceeds from the sale of the purported clients’ paintings, when, in fact, she had. Further, there was no Swiss client and no Spanish collector. In total, she failed to report the receipt of at least $12.5 million of income for the years 2006 through 2008.
In addition, ROSALES received most of the proceeds from the sale of the paintings in a foreign bank account that she hid from, and failed to report to, the IRS. U.S. taxpayers are required to report the existence of any foreign bank account that holds more than $10,000 at any time during a given year by the filing of a Report of Foreign Bank and Financial Accounts, Form TD F 90-22.1 (“FBAR”). ROSALES failed to file FBARs for the years 2007 through 2011.
ROSALES, 56, of Sands Point, New York, is charged with filing false tax returns for the years 2006 through 2008, and with willful failure to disclose an offshore bank account for the years 2007 through 2011. On each of the three false tax return charges, she faces a maximum sentence of three years in prison, a maximum term of three years of supervised release, and a maximum fine of $100,000. On each of the five willful failure to file FBAR charges, she faces a maximum sentence of five years in prison, a maximum term of five years of supervised release, and a maximum fine of $250,000.
Mr. Bharara praised the outstanding efforts of IRS-CI and FBI in the investigation, which he noted is ongoing. He also thanked the Department of Justice’s Tax Division for their significant assistance in the investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Jason P. Hernandez and Daniel W. Levy are in charge of the prosecution.
The charge and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Glafira Rosales Complaint
Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Arrest of NYPD Detective for Computer HackingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of EDWIN VARGAS, a detective with the New York City Police Department (“NYPD”), for computer hacking crimes. VARGAS was arrested this morning outside his residence in Bronxville, New York, and will be presented in Manhattan federal court later today before U.S. Magistrate Judge Sarah Netburn.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Detective Edwin Vargas paid thousands of dollars for the ability to illegally invade the privacy of his fellow officers and others. He is also alleged to have illegally obtained information about two officers from a federal database to which he had access based on his status as an NYPD detective. When law enforcement officers break the laws they are sworn to uphold, they do a disservice to their fellow officers, to the Department, and to the public they serve, and it will not be tolerated.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, the defendant illegally acquired log-in information for the e-mail accounts of dozens of people, including police department co-workers. Of all places, the police department is not a workplace where one should have to be concerned about an unscrupulous fellow employee. Unlike the e-mail accounts, the defendant didn’t need to pay anyone to gain access to the NCIC database. But access is not authorization, and he had no authorization.”
According to the Complaint unsealed today in Manhattan federal court:
E-mail hacking services have the ability to gain unauthorized access to any e-mail account in exchange for a fee. Between March 2011 and October 2012, VARGAS, an NYPD detective assigned to a precinct in the Bronx, hired an e-mail hacking service to obtain log-in credentials, such as the password and username, for certain e-mail accounts. In total, VARGAS purchased at least 43 personal e-mail accounts and one cellular phone belonging to at least 30 different individuals, including 21 who are affiliated with the NYPD; of those 21, 19 are current NYPD officers, one is a retired NYPD officer, and one is on the NYPD’s administrative staff. After receiving the log-in credentials he had purchased from the e-mail hacking services, VARGAS accessed at least one personal e-mail account belonging to a current NYPD officer. He also accessed an on-line cellular telephone account belonging to another victim. VARGAS paid a total of more than $4,000 to entities associated with the e-mail hacking services.
An examination of the contents of the hard drive from VARGAS’s NYPD computer revealed, among other things, that the Contacts section of his g-mail account included a list of at least 20 e-mail addresses, along with what appear to be telephone numbers, home addresses, and vehicle information corresponding to those e-mail addresses, as well as what appear to be the passwords for those e-mail addresses.
VARGAS also accessed the National Crime Information Center (NCIC) database, a federal database, to obtain information about at least two NYPD officers without authorization. The e-mail accounts of those two officers were among the e-mail accounts VARGAS paid the e-mail hacking services to hack into so he could obtain log-in credentials.
VARGAS, 42, of Bronxville, New York, is charged with one count of conspiracy to commit computer hacking and one count of computer hacking. Each count carries a maximum sentence of 1 year in prison.
Mr. Bharara praised the investigative work of the FBI. He also thanked the NYPD and its Internal Affairs Bureau for their cooperation and assistance in the investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Rosemary Nidiry is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Edwin Vargas Complaint
Man Pleads Guilty to Conspiracy Involving Embezzlement from Turnberry AssociatesRead the Press Release
LAS VEGAS, Nev. – A man has pleaded guilty to conspiracy to commit fraud for his role in the embezzlement of nearly $5.6 million from Turnberry Associates, the parent company which owned or developed the Residences at MGM, Town Square shopping center, Turnberry Place, Turnberry Towers, and the Stirling Club in Las Vegas, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Rocco Lazazzaro, 55, of Las Vegas, pleaded guilty to conspiracy to commit wire fraud and is scheduled to be sentenced on Aug. 22, 2013, by U.S. District Judge Gloria M. Navarro.
According to Lazazzaro’s written guilty plea agreement, from about May 17, 2007, to about Jan. 12, 2012, he and Hope Ippoliti, 51, the former controller for Turnberry Associates, conspired to steal approximately $3.7 million dollars from Turnberry and its affiliates. Ippoliti created fund transfer requests containing false information that the funds were intended for business-related purposes when she and Lazazzaro actually intended to withdraw the funds for personal use. Ippoliti faxed or emailed the fund transfer requests from Nevada to Turnberry Associates in Florida to cause the transfer of funds into Bank of America accounts over which she had signatory authority. Ippoliti and Lazazzaro deposited and cashed checks and cashier’s checks drawn on Bank of America bank accounts belonging to Turnberry Associates and its affiliates. The total losses to Turnberry Associates and its affiliates are approximately $5.6 million. According to Lazazzaro’s guilty plea agreement, he was directly involved in causing approximately $3.7 million of those losses.
In March, Ippoliti pleaded guilty to conspiracy to commit wire fraud resulting in total losses of $5.6 million dollars, and is scheduled to be sentenced on July 11, 2013 before U.S. District Judge Gloria M. Navarro.
Both Lazazzaro and Ippoliti face a maximum of 20 years in prison, a $250,000 fine, criminal forfeiture, five years of supervised release, and are required to make full restitution to Turnberry Associates.
The case was jointly investigated by the FBI and United States Secret Service and is being prosecuted by Assistant U.S. Attorney Christina M. Brown.
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.Leader of Crack Distribution Ring Sentenced to 14 Years in Federal PrisonRead the Press Release
McALLEN, Texas – Mexican Nationals Emmanuel Barrientos, 33, and Juan Trevino, 38, have been ordered to prison following their convictions in relation to a crack cocaine trafficking conspiracy, United States Attorney Kenneth Magidson announced today. The two men pleaded guilty on March 4, 2013.
Today, U.S. District Judge Micaela Alvarez handed Barrientos a sentence of 168 months for conspiring to possess with the intent to distribute crack cocaine. Convicted of possessing with the intent to distribute crack cocaine, Trevino was sentenced to 82 months of federal imprisonment. Barrientos also received a five-year-term of supervised release.
In August 2011, agents of the Drug Enforcement Administration (DEA) with assistance from the Rio Grande City Police Department launched an investigation into a crack cocaine distribution network in Rio Grande City. Following an investigation that included 20 drug transactions involving informants and undercover agents that resulted in the seizure of more than 180 grams of crack cocaine, a federal grand jury indicted 11 Rio Grande City residents including the defendants on Nov. 13, 2012. The investigation revealed the crack cocaine distribution network relied upon the use of at least four residential homes in Rio Grande City where drug buyers could purchase crack cocaine around the clock.
The evidence presented during the hearing today showed Barrientos led the crack distribution ring that included Trevino, Esteban Trevino and Alfredo Barrientos. The group sold large quantities of crack from two adjacent residences in Rio Grande City. In handing down these sentences, Judge Alvarez noted the harm the defendants had inflicted upon their community and strongly admonished them for dealing drugs from their residences in the midst of their families including small children.
Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The remaining nine defendants ensnared in the year-long investigation have been convicted. Today, Judge Alvarez also sentenced Jose Huerta, 29, and Eliza Escobar, 30, to 12 months in federal custody. Escobar also received a two-year-term of supervised release.
Nancy Cantu, 32, was sentenced to 48 months in federal prison followed by two years of supervised release by U.S. Chief District Court Judge Ricardo H. Hinojosa. Melissa Wolf, 48, received 33 months of incarceration from Judge Hinojosa followed by a three-year-term of supervised release. Israel Pena, 23, Luciano Lopez III, 46, and Nancy Clarke, 39, await sentencing before Judge Hinojosa on Aug. 16, 2013, at 9:30 a.m. Israel Pena, 23, is scheduled for sentencing on June 5, 2013, at 9:30 a.m. Barrientos and Esteban Trevino are scheduled for sentencing before Judge Alvarez on July 11, 2013, at 9:00 a.m.
This case was investigated by the DEA and the Rio Grande City Police Department and is being prosecuted by Assistant United States Attorneys Grady J. Leupold and Jason Honeycutt.
Last of Four Men Involved in Methamphetamine Conspiracy Sentenced in Federal CourtRead the Press Release
CHATTANOOGA, Tenn. – Shane Howell, 41, of Flintville, Tenn., was sentenced on May 20, 2013, by the Honorable Harry S. Mattice, U.S. District Court Judge, to serve 108 months in federal prison for conspiracy to manufacture and distribute methamphetamine.
Howell was the last of four individuals indicted in July 2012 and charged with conspiracy to manufacture and distribute methamphetamine, along with six other offenses related to the manufacture of methamphetamine. William Shane Reid, 34, of Flintville, Tenn.; William Scott Cunningham, 34, of Fayetteville, Tenn.; and James Thomas Hobbs, 32, of Fayetteville, Tenn., were previously sentenced by Judge Mattice in February 2013. Reid was sentenced to 170 months in federal prison, while Cunningham and Hobbs each received sentences of 70 months in prison.
This investigation, led by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), resulted in several seizures of finished methamphetamine, as well as meth labs in and around Lincoln County, Tenn. These four individuals and other uncharged conspirators are believed to be responsible for more than 200 grams of methamphetamine.
Agencies involved in this investigation included the ATF, Tennessee Bureau of Investigation and Lincoln County Sheriff’s Department. Terra L. Bay, Assistant U.S. Attorney, represented the United States.
Las Vegas Urology Practice Agrees to Pay U.S. Department of Justice $1 Million to Settle Civil Health Care Fraud AllegationsRead the Press Release
LAS VEGAS – A local urology practice, Las Vegas Urology, LLP, has agreed to pay the United States Department of Justice $1 million to resolve civil allegations that it improperly billed Medicare, TRICARE, and other federal health care insurance programs, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
The United States contends that Las Vegas Urology engaged in improper billing between Jan. 1, 2005, and June 30, 2010, to Medicare, TRICARE, the Federal Employee Health Benefits Program, and the Railroad Retirement Medicare Program. In a settlement agreement effective May 17, 2013, the parties agreed to resolve the United States claims. In consideration of the $1 million payment and an integrity agreement entered into between the federal government and Las Vegas Urology, the federal government has agreed not to seek exclusion of Las Vegas Urology from federal health care programs. In addition, the settlement agreement states that it is neither an admission of liability by Las Vegas Urology nor a concession by the United States that its claims are not well founded.
According to the Las Vegas Urology website, they have seven locations in the Las Vegas Valley and 12 physicians.
Assistant United States Attorney Roger Wenthe handled the case on behalf of the U.S. Attorney’s Office. The case was investigated by the Office of the Inspector General for the U.S. Department of Health and Human Services..
Laredoan Charged with Methamphetamine and Marijuana TraffickingRead the Press Release
LAREDO, Texas – A two-count indictment has been unsealed following the arrest of Laredo resident Santos Eliseo Carpio Jr., 33, on charges of conspiracy to possess with the intent to distribute methamphetamine and marijuana and possessing with intent to distribute methamphetamine, United States Attorney Kenneth Magidson announced today.
The sealed indictment was returned by a grand jury on Sept. 25, 2012, and unsealed late yesterday upon his arrest. He is expected to make an initial appearance before U.S. Magistrate Judge J. Scott Hacker on Wednesday, May 22, 2013.
The indictment alleges Carpio conspired to transport 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and 1,000 kilograms or more of marijuana since July 2011. Carpio also allegedly possessed with the intent to distribute methamphetamine. If convicted, he faces a mandatory minimum sentence of 10 years and a maximum of life in prison and a possible $10 million fine.
The case is being investigated by the Drug Enforcement Administration. Assistant United States Attorney Elizabeth R. Rabe 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.Laredo Resident Charged with Defrauding the Department of LaborRead the Press Release
LAREDO, Texas – Sergio Hinojosa, 55, a resident alien living in Laredo, has been arrested and charged with conspiracy to defraud the United States, theft of public money, mail fraud and wire fraud, United States Attorney Kenneth Magidson announced today.
The sealed criminal complaint was filed Friday, May 17, and was unsealed upon his arrest by federal authorities this morning. He is set for an initial appearance tomorrow morning before U.S. Magistrate Judge Diana Song Quiroga, at which time the government expects to request his detention without bond pending further criminal proceedings.
According to the complaint, Hinojosa allegedly conspired to defraud and committed theft of government property against the Texas Workforce Commission (TWC).
Hinojosa allegedly created a scheme in which he filed fraudulent unemployment insurance claims at the request of others. The complaint alleges he would file a claim by telephone, at which time he would create a fictitious last employer including the name of the fictitious employer, address, employment dates, hourly wages and telephone number. TWC would then mail a notice of application for unemployment benefits letter to the fictitious employer to verify employment at an address Hinojosa or others allegedly controlled. Upon receipt of the letter, Hinojosa would then respond by telephone or via fax allegedly purporting to be the employer, according to the allegations.
The complaint alleges TWC would, in turn, generate a debit card, funded through the Department of Labor, and mail the card to another address controlled by Hinojosa or others.
From approximately 2008 to on or about May 13, 2013, 119 suspected fictitious claims attributed to Hinojosa had allegedly been filed, according the complaint. The estimated loss to TWC from the suspected fictitious claims is approximately $721,000.
If convicted, he faces 20 years in federal prison for each of the mail and wire fraud charges, five years for the conspiracy charge and 10 years for theft of public money. Each charge also carries a $250,000 fine as possible punishment.
The case is being investigated by Department of Labor – Office of Inspector General, FBI, the Texas Workforce Commission and Customs and Border Protection - Internal Affairs. Assistant United States Attorney Roberto Ramirez is prosecuting.
Jury Finds Congressional Campaign Finance Director Guilty of Role in Illegal Contribution SchemeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the Federal Bureau of Investigation, today announced that a federal jury in New Haven has found ROBERT BRADDOCK, JR., 34, guilty of multiple offenses stemming from a scheme to direct illegal campaign contributions into the campaign of a candidate for the U.S. House of Representatives. The trial before U.S. District Judge Janet Bond Arterton began on May 13 and the jury returned its verdict today after deliberating for approximately two hours.
“The evidence disclosed during this trial revealed a disturbing scheme operated by individuals who believed that our federal campaign finance laws are meaningless, and that the legislative process can be easily corrupted with campaign contributions,” stated Acting U.S. Attorney Daly. “This case demonstrates exactly why our campaign finance laws exist in the first place, and why this system must be transparent. I thank the FBI for uncovering this scheme and their outstanding work during the course of this investigation. I am also proud of the efforts of our prosecution team.”
“Today’s guilty verdict is an important one because a jury of Mr. Braddock’s peers, registered voters from the State of Connecticut, has affirmed that pay-to-play schemes in the political arena will not be tolerated in their state,” stated FBI Special Agent in Charge Mertz. “Conspiring to conceal the origin of campaign donations is a serious criminal offense and those who knowingly accept conduit or straw contributions severely undermine the public’s belief in good, honest government.”
According to the trial evidence, court documents and statements made in court, in August 2011, the State of Connecticut applied for a court order enjoining Roll Your Own (“RYO”) smoke shops from continuing to operate without complying with state law governing tobacco manufacturers. RYO smoke shops are retail businesses that sell loose smoking tobacco and cigarette-rolling materials and offer customers the option of paying a “rental” fee to insert the loose tobacco and the rolling materials into a RYO machine, which is capable of rapidly rolling large quantities of cigarettes. Customers did not pay a tax on the RYO cigarettes when rolled by the RYO machines, in contrast to cigarettes purchased over-the-counter.
Paul Rogers and George Tirado co-owned Smoke House Tobacco, a RYO smoke shop with two locations in Waterbury. Fearing that the Connecticut General Assembly would enact legislation harmful to RYO smoke shop owners’ business interests during the 2012 legislative session, Rogers, Tirado, Harry Raymond “Ray” Soucy, David Moffa, Benjamin Hogan and others engaged in a scheme to direct conduit contributions into the campaign of Christopher Donovan, a candidate for the U.S. House of Representatives. At the time, Donovan was also the Speaker of the Connecticut House of Representatives. As part of the scheme, the co-conspirators recruited multiple individuals to serve as conduit contributors to the campaign. These individuals permitted checks to be written in their own names to the campaign, and certain conspirators reimbursed them with cash, thereby concealing the fact that RYO smoke shop owners were contributing to the campaign.
BRADDOCK, the Finance Director of the Donovan for Congress campaign, and Joshua Nassi, the Campaign Manager, knew that Soucy, Rogers and others opposed legislation that would harm the business interests of the RYO smoke shop owners. In November and December 2011, Rogers, Soucy, Tirado, Moffa, Hogan and others made four $2,500 conduit contributions to the Donovan for Congress campaign.
On April 3, 2012, Soucy contacted Nassi and told him that RYO owners wanted to provide additional contributions to the campaign. That same day, the Connecticut General Assembly’s Joint Committee on Finance, Revenue and Bonding voted in favor of Senate Bill 357, legislation that would have deemed RYO smoke shop owners to be tobacco manufacturers under Connecticut law, a designation that would have subjected RYO smoke shop owners to a substantial licensing fee and tax increase. Later that day, Soucy contacted Nassi again to state his displeasure with the vote.
On April 11, 2012, Soucy, Rogers and an FBI special agent working in an undercover capacity delivered four $2,500 checks in the names of conduit contributors to Nassi and Braddock. On April 23, 2012, Nassi advised Soucy that one of the checks had bounced and Soucy indicated that the contributor had been given cash to deposit. Nassi stated that the campaign needed the check by midnight the following day, and Soucy delivered a replacement check by that deadline. On May 2, 2012, the Campaign submitted a fundraising report to the Federal Election Commission (FEC) stating that the four contributions given in April were from the conduit contributors when, in fact, they were not.
Over the next two weeks, Nassi continued to advise Soucy on the status of the RYO legislation and Soucy told Nassi that he would be delivering an additional $10,000 if the legislation died. On May 9, 2012, the legislative session ended and the legislation had not been called for a vote by either chamber of the General Assembly.
On May 14, 2012, Soucy, Rogers and Hogan met at Smoke House Tobacco where Soucy provided Rogers with $10,000 in cash to be used to reimburse additional conduit contributors. Prior to the meeting, Hogan had approached Waterbury business owner Daniel Monteiro and an employee of Monteiro’s and asked them to serve as conduit contributors. Monteiro subsequently wrote a $2,500 check to the campaign, and his employee obtained a bank check in the amount of $2,500. Both were assured that they would be reimbursed. These two checks, and another $2,500 bank check drawn on Hogan’s own account but not in his name, were given to Soucy at the meeting. Also, at Nassi’s request, Rogers gave Soucy a fourth $2,500 check from a conduit contributor that was payable to a political party. Soucy delivered the four checks to Nassi at a political event later that day. As he was exiting the event, Soucy encountered BRADDOCK and stated that “twenty thousand was well worth it….And another ten grand.” BRADDOCK responded, “You’re the man.”
On May 15, 2012, BRADDOCK and Soucy had a telephone conversation related to the four conduit checks that Soucy had delivered the previous day, and BRADDOCK indicated that he needed additional identifying information for Benjamin Hogan for FEC reporting purposes. During the conversation, Soucy stated that a previous contributor “had bounced a check even though you put the money right in their hands.” He later stated, “…grabbing these drunks and drug addicts and say ‘Here, write this check…,” to which BRADDOCK responded, while laughing, “Hey, it works.”
Later that day, Soucy called BRADDOCK to inform him that Hogan was a RYO smoke shop “owner,” his check should not be deposited and that Soucy would provide a replacement check. BRADDOCK stopped the check from being deposited.
On May 16, 2012, Soucy met Nassi and provided him with a replacement $2,500 check in the name of someone who was not affiliated with any RYO shops.
In addition to the testimony of Soucy, Rogers, the undercover FBI special agent and others, the trial evidence included numerous audio and video conversations that were recorded during the course of the investigation.
BRADDOCK was found guilty of one count of conspiring to make false statements to the FEC and to defraud the U.S. by impeding the function of the FEC, one count of accepting more than $10,000 in federal campaign contributions made by persons in the names of others and one count of causing a false report to be filed with the FEC. Judge Arterton has scheduled sentencing for August 13, 2013, at which time BRADDOCK faces a maximum term of imprisonment of 12 years and a fine of up to $750,000.
Soucy, Rogers, Nassi, Moffa, Tirado, Hogan and Monteiro have pleaded guilty to charges related to this scheme and await sentencing.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Christopher M. Mattei and Eric J. Glover.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Joplin Man Pleads Guilty to Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Joplin, Mo., man pleaded guilty in federal court today to receiving and distributing child pornography over the Internet.
Rodney Russell, 41, of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in an Oct. 3, 2012 federal indictment.
By pleading guilty today, Russell admitted that he received and distributed child pornography over the Internet between Oct. 4 and Dec. 21, 2011.
Under federal statutes, Russell is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Iowa Man Sentenced to 37 Years in Prison for Mailing Pipe Bombs and Threats to Investment Firms in Bid to Raise Stock PricesRead the Press Release
CHICAGO — A former Dubuque, Iowa, machinist was sentenced today to 37 years in prison for mailing a dozen threatening letters from the Chicago area and elsewhere, and mailing two pipe bombs from a Chicago suburb, between 2005 and early 2007 to investment firms and advisors as part of terror campaign to drive up the value of stock he owned in two companies. The defendant, JOHN P. TOMKINS, who signed some of his letters “THE BISHOP,” was convicted in May 2012 after a two-week trial in U.S. District Court.
Tomkins, 48, received a mandatory minimum sentence of 30 years for using a destructive device while mailing a threatening communication, which was imposed consecutively to seven years on other counts. He was convicted of two counts of possessing a unregistered destructive device and nine counts of mailing a threatening communication.
Tomkins “taunted” and “terrified” a dozen victims, who could have been seriously injured or killed, in committing “a series of horrific crimes,” U.S. District Judge Robert M. Dow, Jr., said in imposing the sentence after conducting a hearing last month. Tomkins has remained in federal custody without bond since he was arrested on April 25, 2007, following an investigation led by the U.S. Postal Inspection Service.
“Tomkins took these terrifying and secretive actions because he was greedy – because he did not like the financial and life situation in which he found himself. To remedy those perceived problems, he decided to terrorize people to get what he wanted. He was indifferent to whether he killed people in the process. For these horrific choices, that he repeatedly made over the course of two years, Tomkins received the lengthy sentence imposed today,” said Gary S. Shapiro, United States Attorney for the Northern District of Illinois.
“Through an intensive investigation, the U.S. Postal Inspection Service identified Tomkins before his behavior led to victims sustaining severe physical injuries or even death. Although this sentencing brings Tomkins’ acts of terror to a close, his victims will live forever with the pain they suffered because of him. The Postal Inspection Service takes any crime involving the mail very seriously and we will continue to investigate individuals who misuse the U.S. mail to commit crime,” said Pete Zegarac, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.
The evidence at trial showed that the two unregistered destructive devices were each mailed on Jan. 26, 2007, at the Rolling Meadows Post Office, northwest of Chicago. One package was addressed to an individual at Janus Small Cap at an address in Denver, where it was forwarded unopened by Janus to a related investment entity in Chicago. The second parcel was addressed to an individual at American Century at an address in Kansas City, Mo. Upon delivery, authorities were notified and both parcels were recovered by Postal Inspectors.
Each parcel contained an improvised explosive weapon, commonly known as a pipe bomb. Expert testimony at trial showed that they were functional, even though the firing circuit was not fully connected, and they were capable of exploding as a result of jostling or impact and causing serious injury or death to persons near the explosion. Each parcel contained a letter stating, in part: “BANG!! YOU’RE DEAD.”
Tomkins was convicted of mailing a dozen threatening letters to investment companies and individuals associated with them between May 23, 2005, and July 17, 2006. The typewritten letters bore postmarks from Chicago, Palatine, Milwaukee, Des Moines and Orlando, Fla., and some were signed “THE BISHOP,” while others ended with the words “TIC TOC.” The first letter, for example, stated how easy it is to kill someone, citing “The Unibomber” (sic) and “Salvo,” a reference to convicted sniper Lee Malvo. In addition to threatening language, some of the letters demanded that the price of the former 3Com Corporation (COMS) stock be raised to $6.66 by a certain date. Other demands were made for a rally in the stock price of Navarre Corporation, a publicly-traded technology and entertainment company that traded under the ticker symbol NAVR.
Evidence also included U.S. Securities and Exchange Commission records showing individuals with positions of at least 200 option contracts. Two reports each obtained for 3Com and Navarre identified Tomkins as the only investor whose account appeared in those reports at certain times dating back to 2005. Trading records showed that Tomkins held financial interests in 3Com and Navarre that would have increased in value had the securities moved in the directions demanded in the threatening letters and when the pipe bombs were mailed.
One the day he was arrested, law enforcement officials searched storage garages rented by Tomkins in Dubuque and recovered two additional assembled pipe bombs similar to the ones that were mailed, as well as all of the components used in making the mailed devices. For example, inspectors discovered store receipts for shotgun shells containing the explosive powder that was used in the mailed pipe bombs and was purchased in Madison, Wis., 23 days before the two package bombs were mailed. Inspectors also found a receipt for end caps used to assemble the devices that were purchased in Dubuque just two days before they were mailed in January 2007.
The government was represented by Assistant U.S. Attorneys Patrick C. Pope and Paul H. Tzur.
The investigation was led by the U.S. Postal Inspection Service, joined by agents from the Federal Bureau of Investigation’s Joint Terrorism Task Force and the Bureau of Alcohol Tobacco Firearms and Explosives. The SEC, the Illinois State Police, the Iowa Department of Public Safety, the Dubuque, Kansas City and Chicago police departments, the Quad Cities Bomb Squad, and the U.S. Attorney’s Office in the Northern District of Iowa also assisted in the investigation.
Four More Defendants Sentenced in Major Methamphetamine ConspiracyRead the Press Release
Next Sentencings Set for June 7, 2013
WICHITA FALLS, Texas — On Friday, May 17, 2013, four additional defendants, who pleaded guilty to their respective roles in a major methamphetamine distribution conspiracy that operated in Wichita Falls, were sentenced by U.S. District Judge Reed C. O’Connor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The following defendants were sentenced on Friday:
- Anthony DiPalma, 32, sentenced to 188 months
- Jason Brent Hoffman, 36, sentenced to 120 months
- Debra McCulloch, 59, sentenced to 50 months
- McKayla Fondren, 21, sentenced to 24 months
DiPalma and Fondren each pleaded guilty to one count of possession with intent to distribute and distribution of methamphetamine. Hoffman admitted being a felon in possession of a firearm and McCulloch pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute and to possess with intent to manufacture and manufacture methamphetamine.
DiPalma admitted that on March 28, 2012, he possessed with intent to distribute and distributed five grams or more of methamphetamine.
Hoffman, who has both state and federal drug convictions, admitted that in October 2011, he possessed a 9 mm pistol, which he sold to an undercover agent.
McCulloch admitted that on multiple occasions between June and September 2012, she distributed, and facilitated the ability of co-conspirators, to distribute methamphetamine. She also admitted allowing co-defendants Steve Ysasaga and David Calandreli to store quantities of methamphetamine, as well as proceeds from the sale of the methamphetamine, at her residence on 30th Street in Wichita Falls.
Fondren admitted that in June 2012, when officers with the Wichita Falls Police Department executed a state search warrant at her residence on Dee Drive in Wichita Falls, they found more than 15 grams of methamphetamine, as well as a digital scale and a small tub of MSM, a substance used to dilute or cut methamphetamine.
Several more defendants convicted in the conspiracy are scheduled to be sentenced on June 7, 2013. To date, 29 of the 30 defendants charged in this conspiracy have entered guilty pleas; a total of 19 defendants have been sentenced. The case against one defendant has not been resolved.
This Organized Crime and Drug Enforcement Task Force (OCDETF) case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety and the Wichita Falls Police Department. Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.
Former School Board Member Sentenced for Cocaine TraffickingRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that former DeSoto Parish School Board member Bartholomew Claiborne, 31, of Mansfield, was sentenced by U.S. District Judge Elizabeth E. Foote, to one year and one day in prison and three years supervised release for distributing cocaine.
According to evidence presented at the guilty plea, Claiborne distributed cocaine and other controlled substances on 14 separate occasions between Oct. 11, 2011 and July 12, 2012. Authorities used surveillance methods to observe Claiborne selling cocaine.“As an elected official, Bartholomew Claiborne swore to uphold the law, and by his own admission, failed to do so,” Finley stated. “He has failed the children and parents of the school board district where he served as a role model. We hope this case sends a message that public officials are not above the law. We will continue to prosecute those who violate federal laws. I would like to thank all of the federal, state and local agencies who participated in the investigation.”
Claiborne was the first to be indicted as part of the Organized Crime Drug Enforcement Task Force (OCDETF) “Operation Limpiar Casa,” an operation targeting drug trafficking in the Mansfield area. The FBI, the DEA, the DeSoto Parish Sheriff’s Office, the Mansfield Police Department and the Tri-Parish Task Force which includes DeSoto, Sabine and Red River parishes, participate in the OCDETF program and conducted the operation.
The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.First Assistant U.S. Attorney Alexander C. Van Hook prosecuted the case.
Former Moberly Correctional Center Inmate Sentenced on Federal Conspiracy ChargesRead the Press Release
St. Louis, MO -Anthony Johnson and his two associates referred to themselves as the “Hilton” family. Between July 2009 and March 2011, Johnson engaged in a conspiracy to steal identification information of unsuspecting victims, open new credit accounts using the stolen identities and use the fraudulent credit accounts to deposit money into the accounts of inmates at the Moberly Correctional Center (MCC). Today he was sentenced to 60 months in prison and ordered to pay restitution of $80,000.
According to Johnson’s plea documents, once they obtained credit accounts, they wire-transferred money into the accounts of inmates, which was then sent to Johnson's co-defendants and other people outside of MCC.
ANTHONY JOHNSON pled guilty in February to one felony count of conspiracy to commit identity theft and three felony counts of identity theft. He appeared today for sentencing before United States District Judge Henry Autrey.
Co-defendants Cedric Walton, Memphis, TN, was indicted on the conspiracy count and one count of identity theft; and Timothy Moore, Memphis, TN, was indicted on conspiracy. Their cases are still pending.
Conspiracy carries a maximum penalty of five years in prison and/or fines up to $250,000; each count of identity theft carries a maximum penalty of 15 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Postal Inspection Service; the Federal Bureau of Investigation; the Moberly, Missouri Police Department and the Missouri Department of Corrections. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney's Office.As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Defendants Walton and Moore are presumed to be innocent unless and until proven guilty.
Former KC Man Indicted for Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Kansas City, Mo., resident was indicted by a federal grand jury today for producing child pornography.
Paul Leslie Kannarr, 68, formerly of Kansas City, was charged in a 10-count indictment returned by a federal grand jury in Kansas City.
Today’s indictment alleges that Kannarr used a minor, identified as “Jane Doe,” to produce child pornography on six separate occasions between Dec. 19, 1999 and Sept. 23, 2000. The indictment also charges Kannarr with two counts of posting a notice online that offers to display or distribute child pornography, one count of transporting child pornography over the Internet and one count of possessing child pornography.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Kansas City, Mo., Police Department and the FBI Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Former High-ranking Official at NYC Department of Housing Preservation and Development Sentenced to 18 Months in PrisonRead the Press Release
Earlier today, Michael Provenzano, formerly Director of Construction Services for the New York City Department of Housing Preservation and Development (HPD), was sentenced to a term of imprisonment of 18 months followed by three years of supervised release, and ordered to pay $30,000 restitution to the City of New York and a $5,000 fine following his corruption conviction for taking bribes. As part of his sentence, Provenzano also was ordered to forfeit the $30,000 in bribery money to the government, representing the proceeds of his crime. The sentence was imposed by United States District Judge Nina Gershon at the federal courthouse in Brooklyn, New York.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Robert Panella, Special Agent-in-Charge, United States Department of Labor (DOL) Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; and Rose Gill Hearn, Commissioner, New York City Department of Investigation (DOI).
From approximately January 2007 through December 2009, Provenzano solicited and received $30,000 in bribe payments from a contractor who had extensive construction contracts with HPD, the largest municipal developer of affordable housing in the United States. The contractor paid Provenzano the bribes in return for, among other things, Provenzano leaking to the contractor confidential HPD inspection reports, which documented the number of workers at a given work site. The contractor was regularly and illegally employing additional workers at different work sites and paying them less than the legally-required prevailing wage. With these leaked inspection reports, the contractor was able to conform his invoices to match the reports, thereby avoiding detection by HPD for his illegal conduct in paying those additional workers less than the prevailing wage.
Today’s sentencing proceeding is the first stemming from the government’s wide-ranging investigation into fraud involving the affordable housing industry in New York City. Four real estate developers and two other former HPD officials have pleaded guilty to various charges including racketeering conspiracy, fraud, and bribery related to the development of affordable housing in New York City. Three additional defendants await trial.
“Provenzano admitted taking bribes to provide a developer with confidential information that helped that developer exploit his workers. Today’s sentence sends a clear message: any public servant, whether a legislator or an appointed official, who dips his hand in the public till will be prosecuted to the fullest extent of the law. Serving the public is a privilege, not an opportunity for unjust enrichment. We will continue to root out public corruption wherever we find it,” stated United States Attorney Lynch. Ms. Lynch thanked the Internal Revenue Service, Criminal Investigation, New York; the United States Department of Housing and Urban Development; and the New York City Police Department for their assistance in this case.
FBI Assistant Director-in-Charge Venizelos stated, “By his admission, Provenzano was for sale. For a fee, he provided information that benefitted a contractor rather than serving the interests of the city, his agency and the public.”
“Today’s sentencing highlights the Office of Inspector General’s commitment to combat fraud and corruption involving publicly funded construction contracts. The OIG will continue to work with our law enforcement partners to investigate those who facilitate the circumvention of prevailing wage laws for personal gain,” stated DOL/OIG Special Agent-in-Charge Panella.
DOI Commissioner Rose Gill Hearn said, “This defendant should have protected HPD’s construction process. Instead, he traded his integrity so he could pocket tens of thousands of dollars in bribes. Now, he reaps the serious consequences of his crimes: conviction, prison, and the loss of a valuable City job.”
The government’s case is being prosecuted by Assistant United States Attorneys Cristina M. Posa, Anthony Capozzolo, and Claire Kedeshian.
The Defendant:
MICHAEL PROVENZANO
Massapequa, New York
Age: 49Former Guard Sentenced to Prison for Tax CrimesRead the Press Release
A former federal correctional officer from the Federal Correctional Institution at Greenville was sentenced to a total of six months in prison, a year of supervised release, and $22,108 in restitution to the IRS, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Attillah Ruffin, 43, waived her right to be indicted by the Grand Jury and pled guilty to an Information in US District Court on January 28, 2013, for filing false tax returns. Ruffin admitted falsifying her personal income tax returns each tax year from 2005-2010. During that time period she defrauded the US Government out of $22,108 by claiming false dependents, false child care expenses, false unreimbursed employee expenses, and false residential energy credits. Ruffin also admitted to fraudulently obtaining a larger tax refund by using an inapplicable filing status by claiming to be a “head of household” when her filing status should have been “single.” Ruffin admitted that these crimes occurred while she was employed as a law enforcement officer for the Federal Bureau of Prisons.
Ruffin was sentenced to serve three months of her sentenced while imprisoned at the Bureau of Prisons, with 3 additional months to be served as home confinement. In addition to paying restitution, she was ordered not to open any credit accounts without prior approval and she was directed to undergo counseling for gambling while also signing a self-exclusion from area gaming establishments.
The investigation was conducted by agents from the Internal Revenue Service Criminal Investigations. The case was prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Florence Inmate Sentenced for Stabbing Fellow Inmate with Homemade KnifeRead the Press Release
DENVER – Michael Kelewood, age 27, an inmate in the U.S. Bureau of Prisons system, was sentenced last week by U.S. District Court Judge William J. Martinez to serve 84 months for assault with a dangerous weapon, U.S. Attorney John Walsh and FBI Denver Special Agent in Charge Thomas Ravenelle announced. Judge Martinez ordered that Kelewood serve his 84 month prison sentence consecutive to his prior sentence of 71 months for assault with a dangerous weapon with intent to do bodily harm. If Kelewood had not committed the assault he would have gotten out of prison next month (June 2013). Once Kelewood ultimately is released from prison, he was ordered to spend 3 years on supervised release.
Kelewood was indicted by a federal grand jury in Denver on August 20, 2012. He pled guilty February 12, 2013. He was sentenced on May 15, 2013.
According to court records, including the stipulated facts contained in the plea agreement, on April 5, 2012, at approximately 12:46 p.m., Kelewood, an inmate at the United States Penitentiary in Florence, Colorado, pulled out a homemade knife and stabbed a fellow inmate as the victim watched television in the common recreation room. Kelewood stabbed the victim inmate several times in the neck, shoulder and eye, resulting in hospitalization for several weeks, with injuries that included a fractured bone in his spine. The investigators determined that Kelewood believed it was his responsibility as a member of the Natives prison gang to stab the victim, with the intention of hurting but not killing him.
“Prosecuting prison assault cases is a critical part of protecting inmates and maintaining the good order of the prison system,” said U.S. Attorney John Walsh. “Vicious attacks like this one will not be tolerated. Those who are responsible will be prosecuted to the full extent of the law.”
“The FBI’s partnership with the Federal Bureau of Prisons and the United States Attorney’s Office ensures that violent criminals, even when incarcerated, are held accountable for their actions,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “This serves as a deterrent to promote a safe and orderly environment for both staff and inmates in the Federal Prison System.”
This case was investigated by the FBI with support from the U.S. Bureau of Prisons.
Kelewood was prosecuted by Assistant U.S. Attorney Colleen Covell.
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Final Guilty Plea in Aryan Knights InvestigationRead the Press Release
BOISE – Joshua Nall, 31, of Boise, pleaded guilty today in United States District Court to unlawfully possessing a firearm, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Nall admitted that on April 13, 2012, he possessed a Glock .40 pistol, which he provided to a confidential informant. Nall was prohibited from possessing the pistol because he was previously convicted of the felony crime of unlawful possession of a firearm in 2008.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Nall is set for sentencing on August 20, 2013, before the Chief U.S. District Judge B. Lynn Winmill, at the federal courthouse in Boise.
Nall’s case is part of a larger investigation involving the Aryan Knights gang, in which 23 people were charged with drug trafficking and firearms violations. Nall is the 23rd person to plead guilty. Fifteen of the 23 people have already been sentenced while the others are awaiting sentencing. The charges are a result of a long-term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation began when the task force focused on illegal drug distribution by the “Aryan Knights,” a gang active in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine.
The Treasure Valley Metro Violent Crimes Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Boise Police Department, Ada County Sheriff’s Office, Caldwell Police Department, Nampa Police Department, Meridian Police Department, Canyon County Sheriff’s Office, and the Idaho Department of Corrections. The Organized Crime and Drug Enforcement Task Force (OCDETF) also contributed to the investigation, including the cooperative law enforcement efforts of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
Nall’s case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Felon Convicted of Drug Trafficking and Firearms ChargesRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Tabari Facen, 36, of Rochester, N.Y. was convicted after a jury trial of possessing 28 grams or more of crack cocaine with intent to distribute, maintaining a drug-involved premises, possessing a firearm in furtherance of drug trafficking crimes, and possessing a firearm and ammunition while being a convicted felon. The defendant, who has a prior state drug trafficking conviction, faces a mandatory minimum penalty of 15 years in prison, a maximum of life, an $8,000,000 fine or both.
Assistant U.S. Attorneys Charles E. Moynihan and Craig R. Gestring, who handled the prosecution of the case at trial, stated that Facen was arrested following the execution of a search warrant at 303 Lakeview Park in Rochester on September 26, 2011 by the Greater Rochester Area Narcotics Enforcement Team. Upon entering the location, officers encountered and arrested the defendant in the master bedroom of the location. In searching the house, officers located and seized over 53 grams of crack cocaine and paraphernalia used to distribute crack cocaine (including digital scales and small ziplock bags) which were secreted in various places throughout the residence. Officers also found a loaded .40 caliber Smith & Wesson handgun, two loaded handgun magazines, and over 100 rounds of ammunition of various calibers.
“As all are aware, Rochester has experienced a rash of violence of late," said U.S. Attorney Hochul. "Much of that violence is committed with firearms. Thanks to today’s verdict, a defendant who possessed both firearms and drugs, and is a prior felon to boot, has now been removed from Rochester for what will be a very long time. The public should be assured that we will continue to target other offenders who engage in either violence or gun related offenses.”
The conviction is the result on an investigation by the Greater Rochester Area Narcotics Enforcement Team composed of law enforcement personnel from the Bureau of Alcohol, Tobacco, Firearms and Explosives under the direction of Resident Agent in Charge Scott Heagney, the Rochester Police Department, under the direction of Chief James M. Sheppard, and the Brighton Police Department, under the direction of Chief Mark Henderson.Sentencing is scheduled for September 4, 2013 before U.S. District Court Judge David G. Larimer.
Federal Jury Convicts Lea County Man on Firearms ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces, N.M., returned a guilty verdict this afternoon against Cody Allen Little, 34, of Lovington, N.M., on a two-count superseding indictment alleging violations of the federal firearms laws after a two-day trial. The verdict was announced by U.S. Attorney Kenneth J. Gonzales, 5th Judicial District Attorney Janetta B. Hicks, and Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Little was arrested on a criminal complaint in June 2012, and subsequently was charged with being a felon in possession of firearms and ammunition and possession of stolen firearms in a superseding indictment. The superseding indictment alleged that Little unlawfully possessed firearms and ammunition, including a stolen assault rifle and a stolen shotgun, on Nov. 1, 2011, in Lea County, N.M. At the time, Little was prohibited from possessing firearms or ammunition because he previously had been convicted of the following felony offenses in the 5th Judicial District Court for the State of New Mexico in Lea County: (1) burglary, battery on a peace officer and possession of drug paraphernalia, (2) battery on a peace officer and resisting an officer, and (3) burglary and larceny.
According to the evidence at trial, on the night of Oct. 24, 2011, the “Southwest Arms,” a gun shop in Lovington that was owned and operated by a federal firearms licensee (FFL), was burglarized and seven weapons, including several assault rifles, were stolen. Within days, law enforcement authorities and the FFL received tips that led officers to focus on Little, who was renting in a converted well-house located on a residential property less than half a mile away from the gun shop, as a potential suspect in the burglary.
On Nov. 1, 2011, officers went to the residential property on which the well-house was located to follow up on the tips. While speaking with an individual at the residence, the officers saw Little walk out of the well-house and away from the area where the officers were standing, and disappear from sight. When an officer walked to the area where Little was last seen, he observed a storage shed with its doors secured in the open position. Glancing into the shed, the officer observed parts of an AR 15 style assault rifle and AR 15 style assault rifles in plain view.
After obtaining a search warrant for the property, officers recovered two firearms and ammunition from the well-house where Little was living. The first firearm, a .308 caliber assault rifle with a loaded 19-round magazine, was found inside a sleeping bag in the well-house. The second, a 12 gauge shotgun, was found under the bed in the well-house. Two shot gun shells were found on a shelf above the bed. Both firearms were among the weapons stolen from the gun shop on Oct. 24, 2011. After confirming that Little was residing in the well-house, the officers arrested Little on state charges on Nov. 2, 2011.
The jury deliberated approximately 50 minutes before returning a guilty verdict on both counts of the superseding indictment.
The state charges against Little were dismissed after he was arrested on federal charges. Little has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has not yet been scheduled. Little faces a maximum sentence of ten years in prison unless the court determines that he is an armed career criminal. In that event, Little faces a mandatory minimum sentence of 15 years in prison.
U.S. Attorney Kenneth J. Gonzales said that the case was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.District Attorney Janetta B. Hicks noted, “Our partnership with the U. S. Attorney’s Office is integral to reducing the violence in southeastern New Mexico. It is imperative to remove armed felons from our community.”
“Anytime we can prevent a prohibited felon from possessing this much firepower, our communities are safer,” stated ATF Special Agent in Charge, Thomas G. Atteberry. “I want to commend the leadership of U.S. Attorney Kenneth J. Gonzales and his prosecution team, in addition to the dedicated ATF agents and local law enforcement that perfected this criminal case.”
The case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistance from the 5th Judicial District Attorney’s Office, the Lovington Police Department and the Lea County Sheriff’s Department, and is being prosecuted by Assistant U.S. Attorneys Marisa A. Lizarraga, Shaheen P. Torgoley and Mick I.R. Gutierrez of the U.S. Attorney’s Las Cruces Branch Office.Federal Jury Convicts Lea County Man on Firearms ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces, N.M., returned a guilty verdict this afternoon against Cody Allen Little, 34, of Lovington, N.M., on a two-count superseding indictment alleging violations of the federal firearms laws after a two-day trial. The verdict was announced by U.S. Attorney Kenneth J. Gonzales, 5th Judicial District Attorney Janetta B. Hicks, and Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Little was arrested on a criminal complaint in June 2012, and subsequently was charged with being a felon in possession of firearms and ammunition and possession of stolen firearms in a superseding indictment. The superseding indictment alleged that Little unlawfully possessed firearms and ammunition, including a stolen assault rifle and a stolen shotgun, on Nov. 1, 2011, in Lea County, N.M. At the time, Little was prohibited from possessing firearms or ammunition because he previously had been convicted of the following felony offenses in the 5th Judicial District Court for the State of New Mexico in Lea County: (1) burglary, battery on a peace officer and possession of drug paraphernalia, (2) battery on a peace officer and resisting an officer, and (3) burglary and larceny.
According to the evidence at trial, on the night of Oct. 24, 2011, the “Southwest Arms,” a gun shop in Lovington that was owned and operated by a federal firearms licensee (FFL), was burglarized and seven weapons, including several assault rifles, were stolen. Within days, law enforcement authorities and the FFL received tips that led officers to focus on Little, who was renting in a converted well-house located on a residential property less than half a mile away from the gun shop, as a potential suspect in the burglary.
On Nov. 1, 2011, officers went to the residential property on which the well-house was located to follow up on the tips. While speaking with an individual at the residence, the officers saw Little walk out of the well-house and away from the area where the officers were standing, and disappear from sight. When an officer walked to the area where Little was last seen, he observed a storage shed with its doors secured in the open position. Glancing into the shed, the officer observed parts of an AR 15 style assault rifle and AR 15 style assault rifles in plain view.
After obtaining a search warrant for the property, officers recovered two firearms and ammunition from the well-house where Little was living. The first firearm, a .308 caliber assault rifle with a loaded 19-round magazine, was found inside a sleeping bag in the well-house. The second, a 12 gauge shotgun, was found under the bed in the well-house. Two shot gun shells were found on a shelf above the bed. Both firearms were among the weapons stolen from the gun shop on Oct. 24, 2011. After confirming that Little was residing in the well-house, the officers arrested Little on state charges on Nov. 2, 2011.
The jury deliberated approximately 50 minutes before returning a guilty verdict on both counts of the superseding indictment.
The state charges against Little were dismissed after he was arrested on federal charges. Little has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has not yet been scheduled. Little faces a maximum sentence of ten years in prison unless the court determines that he is an armed career criminal. In that event, Little faces a mandatory minimum sentence of 15 years in prison.
U.S. Attorney Kenneth J. Gonzales said that the case was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.District Attorney Janetta B. Hicks noted, “Our partnership with the U. S. Attorney’s Office is integral to reducing the violence in southeastern New Mexico. It is imperative to remove armed felons from our community.”
“Anytime we can prevent a prohibited felon from possessing this much firepower, our communities are safer,” stated ATF Special Agent in Charge, Thomas G. Atteberry. “I want to commend the leadership of U.S. Attorney Kenneth J. Gonzales and his prosecution team, in addition to the dedicated ATF agents and local law enforcement that perfected this criminal case.”
The case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistance from the 5th Judicial District Attorney’s Office, the Lovington Police Department and the Lea County Sheriff’s Department, and is being prosecuted by Assistant U.S. Attorneys Marisa A. Lizarraga, Shaheen P. Torgoley and Mick I.R. Gutierrez of the U.S. Attorney’s Las Cruces Branch Office.Federal Jury Convicts Lea County Man on Firearms ChargesRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces, N.M., returned a guilty verdict this afternoon against Cody Allen Little, 34, of Lovington, N.M., on a two-count superseding indictment alleging violations of the federal firearms laws after a two-day trial. The verdict was announced by U.S. Attorney Kenneth J. Gonzales, 5th Judicial District Attorney Janetta B. Hicks, and Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Little was arrested on a criminal complaint in June 2012, and subsequently was charged with being a felon in possession of firearms and ammunition and possession of stolen firearms in a superseding indictment. The superseding indictment alleged that Little unlawfully possessed firearms and ammunition, including a stolen assault rifle and a stolen shotgun, on Nov. 1, 2011, in Lea County, N.M. At the time, Little was prohibited from possessing firearms or ammunition because he previously had been convicted of the following felony offenses in the 5th Judicial District Court for the State of New Mexico in Lea County: (1) burglary, battery on a peace officer and possession of drug paraphernalia, (2) battery on a peace officer and resisting an officer, and (3) burglary and larceny.
According to the evidence at trial, on the night of Oct. 24, 2011, the “Southwest Arms,” a gun shop in Lovington that was owned and operated by a federal firearms licensee (FFL), was burglarized and seven weapons, including several assault rifles, were stolen. Within days, law enforcement authorities and the FFL received tips that led officers to focus on Little, who was renting in a converted well-house located on a residential property less than half a mile away from the gun shop, as a potential suspect in the burglary.
On Nov. 1, 2011, officers went to the residential property on which the well-house was located to follow up on the tips. While speaking with an individual at the residence, the officers saw Little walk out of the well-house and away from the area where the officers were standing, and disappear from sight. When an officer walked to the area where Little was last seen, he observed a storage shed with its doors secured in the open position. Glancing into the shed, the officer observed parts of an AR 15 style assault rifle and AR 15 style assault rifles in plain view.
After obtaining a search warrant for the property, officers recovered two firearms and ammunition from the well-house where Little was living. The first firearm, a .308 caliber assault rifle with a loaded 19-round magazine, was found inside a sleeping bag in the well-house. The second, a 12 gauge shotgun, was found under the bed in the well-house. Two shot gun shells were found on a shelf above the bed. Both firearms were among the weapons stolen from the gun shop on Oct. 24, 2011. After confirming that Little was residing in the well-house, the officers arrested Little on state charges on Nov. 2, 2011.
The jury deliberated approximately 50 minutes before returning a guilty verdict on both counts of the superseding indictment.
The state charges against Little were dismissed after he was arrested on federal charges. Little has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has not yet been scheduled. Little faces a maximum sentence of ten years in prison unless the court determines that he is an armed career criminal. In that event, Little faces a mandatory minimum sentence of 15 years in prison.
U.S. Attorney Kenneth J. Gonzales said that the case was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.District Attorney Janetta B. Hicks noted, “Our partnership with the U. S. Attorney’s Office is integral to reducing the violence in southeastern New Mexico. It is imperative to remove armed felons from our community.”
“Anytime we can prevent a prohibited felon from possessing this much firepower, our communities are safer,” stated ATF Special Agent in Charge, Thomas G. Atteberry. “I want to commend the leadership of U.S. Attorney Kenneth J. Gonzales and his prosecution team, in addition to the dedicated ATF agents and local law enforcement that perfected this criminal case.”
The case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistance from the 5th Judicial District Attorney’s Office, the Lovington Police Department and the Lea County Sheriff’s Department, and is being prosecuted by Assistant U.S. Attorneys Marisa A. Lizarraga, Shaheen P. Torgoley and Mick I.R. Gutierrez of the U.S. Attorney’s Las Cruces Branch Office.Ellington, Missouri, Bank Manager Sentenced on Federal Bank Fraud and Embezzlement ChargesRead the Press Release
Cape Girardeau, MO - Irvin R. Eddington, Jr. was sentenced Monday afternoon to 57 months in prison on bank fraud and embezzlement charges involving his issuance of fraudulent letters of credit while he was Vice President and Manager of the Ellington Branch of People’s Community State Bank (PCSB). In addition to the prison sentence, he was ordered to pay restitution of $1,195,696.
From February to October 2011, Eddington created fraudulent PCSB money orders funded by advances from customer lines of credit to obtain cash or pay his bills. In order to execute his scheme, he would issue money orders payable to a bank loan customer or to a creditor and endorse by forging the customer's name. In each instance, Eddington misrepresented to the teller that the customer had been in earlier that day, endorsed the money order and he was handling the transaction in the customer's stead. In order to evade detection by customers, he used lines of credit from customers who he knew did not monitor their loan histories and who did not have access to their account online. In order to further evade detection, he would sometimes deliberately not mail the customers he targeted their bank statements.
From January 2004 through October 2011, Eddington created and issued numerous fraudulent unsecured irrevocable letters of credit to an associate in the name of PCSB worth approximately $1,340,896. He did not have authority to issue any of these letters of credit and did so without the knowledge or permission of the bank. Unbeknownst to PCSB, this associate then secured loans from other entities using the irrevocable letters of credit as collateral. The associate kept and used the funds derived from those loans leaving PCSB responsible for the balance in the instance of a default. Contrary to his fiduciary duty as a bank Vice President to disclose all letters of credit issued by him, Eddington deliberately failed to discuss the unauthorized letters when the subject was discussed at bank board meetings. The total value of the letters of credit issued and thus the potential loss to the bank for this scheme, was approximately $1,340,896, however, based on loan defaults to date, PCSB is liable for approximately $674,336.
Besides the conduct described above, Eddington also admitted to perpetrating additional fraudulent schemes on PCSB. On March 11, 2010, Eddington, in an effort to circumvent Federal Reserve regulations governing insider lending to bank officers, approved a nominee loan to two customers of the bank for $45,000. He reported the loan to PCSB; however, did not report he was receiving the proceeds of the loan. The loss to PCSB for this scheme was $58,500.On August 4, 2011, the PCSB Loan Committee approved a $249,000 loan to an associate of Eddington. He misrepresented collateral for the loan by providing a fraudulent title insurance policy as part of the loan application. Finally, when the $249,000 loan was presented for approval, Eddington failed to disclose that the associate would receive $56,114 cash from the loan proceeds. The Loan Committee would not have approved the loan had they known that the loan was "secured" by different property, the lack of title insurance and the cash payout to the borrower.
IRVIN R. EDDINGTON, JR., Ellington, MO, pled guilty in February to one felony count of bank fraud and one felony count of embezzlement by a bank employee. He appeared Monday afternoon for sentencing in Cape Girardeau before United States District Judge Carol E. Jackson.
This case was investigated by Federal Deposit Insurance Corporation-Office of Inspector General, U.S. Postal Inspectors, U.S. Department of Agriculture-Office of Inspector General, U.S. Secret Service, Federal Housing Finance Agency-Office of Inspector General. Assistant United States Attorney Stephen Casey handled the case for the U.S. Attorney’s Office.Dyer County Man Sentenced to 300 Months for Enticement of A Minor Through Electronic MeansRead the Press Release
Memphis, TN – United States Attorney Edward L. Stanton III announced that on Monday, May 20, 2013, Chief United States District Judge Jon P. McCalla sentenced Derick Shane Hundley, 30, to 300 months incarceration, followed by lifetime supervised release. There is no parole in the federal system.
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On August 28, 2012, a federal grand jury returned a two-count indictment against Hundley. Count one charged enticement of a minor through electronic means in violation of 18 U.S.C. Section 2422(b). Count two charged possession of child pornography in violation of 18 U.S.C. Section 2252(a)(4)(B).
On January 24, 2013, Hundley pleaded guilty to enticement of a minor through electronic means.
The case was investigated by the Tennessee Bureau of Investigation and the Federal Bureau of Investigation Memphis Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Dan Newsom on behalf of the government.Dunkirk Man Pleads Guilty to Filing Tax Returns for More Than 120 Dead PeopleRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that John M. Berry, Jr., 42, of Dunkirk, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to making a false claim against the United States. The charge carries a maximum sentence of five years in prison, a fine of 250,000, or both.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between September 3, 2008 and March 25, 2009, the defendant filed 122 false income tax returns for the tax years 2007 and 2008 with the Internal Revenue Service. During that time, Berry obtained the personal and identifying information for 122 recently deceased individuals and then used that information to file federal tax returns on behalf of the deceased. The defendant created fraudulent income and withholding information for the deceased and filed the returns electronically.
The 122 tax returns sought refunds totaling $217,520 from the Internal Revenue Service, of which the defendant received $92,462.12. The refunds were deposited directly into Berry’s bank account.
“This case should serve as a warning that our Office, working with our law enforcement partners, will not tolerate attempts to either steal the identities of individuals, or the money of the taxpayers of this country,” said U.S. Attorney Hochul. “That this defendant would rob the identities of deceased individuals is concerning, and could have brought additional grief and pain for their loved ones.”
The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service - Criminal Investigations, under the direction of Toni M. Weirauch, Special Agent in Charge.
Sentencing is scheduled for August 26, 2013, at 1:00 p.m. before Judge Arcara.Donald Carl Salois Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 20, 2013, before U.S. District Judge Sam E. Haddon, DONALD CARL SALOIS, a 49-year-old resident of Browning, was sentenced to a term of:
Prison: life
SALOIS was sentenced after a federal district court trial in which he was found guilty of aggravated sexual abuse. Assistant U.S. Attorneys Ryan G. Weldon and Laura B. Weiss prosecuted the case for the United States.
At trial, the following evidence and testimony was presented to the jury.
On February 25, 2010, SALOIS picked up the victim, a 51-year-old grandmother, in his vehicle along Highway 2, south of Browning, which is within the exterior boundaries of the Blackfeet Indian Reservation. SALOIS said that he would take the victim home, but that never occurred. Instead, SALOIS passed the victim's residence, stopped at a sufficiently secluded place, exited his vehicle, and brutally raped the victim.
When questioned by law enforcement, SALOIS admitted that he had sex with the victim, but claimed the encounter was consensual and occurred in his residence, not on the side of the road. SALOIS also claimed that he never left his residence the night of the rape. The FBI investigated and discovered that neighbors, on the night of the rape, did not see the vehicle owned by SALOIS at the residence.
After the government presented testimony of 12 witnesses over the course of a day and a half, which included medical professionals, law enforcement, lay witnesses, and a DNA expert, the jury convicted SALOIS.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SALOIS will likely serve all of the time imposed by the court.
The investigation was conducted by the Federal Bureau of Investigation.
District Woman Pleads Guilty to Involuntary ManslaughterRead the Press Release
In Traffic Fatality in Southwest Washington
-Impaired Driver Struck Pedestrian, Who Died After She Was Pinned To a Tree-WASHINGTON – Maria N. Werts, 49, of Washington, D.C., pled guilty today to charges of involuntary manslaughter and driving under the influence stemming from a recent traffic fatality in Southwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Werts entered the plea in the Superior Court of the District of Columbia. The Honorable Herbert B. Dixon Jr., scheduled sentencing for July 26, 2013. The plea agreement, contingent upon the Court’s approval, calls for Werts to serve a seven-year prison term for her offenses.
According to the government’s evidence, on Sunday afternoon, April 28, 2013, Werts was drinking malt liquor and smoking crack cocaine immediately before getting behind the wheel of a 2010 Toyota Yaris. While driving on First Street SW, at about 2:45 p.m., Werts ran a red light at the intersection of South Capitol Street, making an illegal right turn on red. A southbound driver on South Capitol Street had to swerve to avoid colliding with Werts.
Werts lost control of the Toyota she was driving, and mounted the sidewalk adjacent to the southbound lanes of South Capitol Street. The victim, Emmajean Gainey, 58, was walking on that sidewalk with another pedestrian. Both Ms. Gainey and her companion attempted to avoid being struck by Werts, but Werts struck Ms. Gainey head on, and pinned Ms. Gainey against a tree between the sidewalk and the roadway. Ms. Gainey was killed instantly.
Bystanders immediately called 911, and attempted to push the Toyota from Ms. Gainey’s body. Witnesses saw Werts get out of the Toyota’s driver’s seat and attempt to leave the scene. Werts was stopped by witnesses until police arrived. When police arrived, they administered filed sobriety tests, which Werts failed. Werts was arrested and, while at a police station, breath tests indicated that her blood alcohol content was above the legal limit for driving. Werts later admitted to drinking alcohol and smoking cocaine immediately prior to getting into the car. While she denied driving the car, stating that she was merely a passenger, several eyewitnesses identified Werts on the scene as the driver responsible for Ms. Gainey’s death.
In announcing the plea, U.S. Attorney Machen praised those who investigated the case for the Metropolitan Police Department, including members of the Major Crash Unit. He also expressed appreciation for those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Sandra Lane, Shavaka Melvin and Phil Aronson. Finally, he commended the work of Assistant U.S. Attorney Edward A. O’Connell, who is prosecuting the matter.
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Crystal Beach Woman Convicted of Defrauding FEMA in the Wake of Hurricane IkeRead the Press Release
GALVESTON, Texas - Whitney Rohacek, 26, of Crystal Beach, has entered a plea of guilty to one count of fraud in connection with a major disaster, United States Attorney Kenneth Magidson announced today.
Rohacek was indicted Jan. 30, 2013. Today, she acknowledged she submitted a false bill of sale for a travel trailer that contained a forged signature, as well as fraudulent title documents and receipts in order to obtain disaster assistance from Federal Emergency Management Agency (FEMA) in the wake of Hurricane Ike.Sentencing has been set for Aug. 18, 2013, before U.S. District Judge Gregg Costa, at which time she faces up to 30 years in prison and a possible $250,000 fine.
Previously released on bond, Rohacek was permitted to remain on bond pending her sentencing hearing.
The investigation leading to the charges was conducted by the Department of Homeland Security – Office of Inspector General. Assistant United States Attorney Andrew Leuchtmann is prosecuting this case.
Cedar Rapids Drug Felon Convicted of Unlawful Possession of Ammunition and Possession of Crack Cocaine with Intent to DistributeRead the Press Release
A Cedar Rapids man with two prior drug trafficking convictions under different names was convicted by a jury today after a two-day trial in federal court in Cedar Rapids.
Gregory Givens, age 29, from Cedar Rapids, Iowa, was convicted of one count of possession of ammunition by a felon and one count of possession of crack cocaine with the intent to distribute. The verdict was returned this afternoon following about two and one-half hours of jury deliberations.
The evidence at trial showed that on October 7, 2010, Givens was stopped by a Cedar Rapids police officer for a traffic violation. When conducting the traffic stop, officers smelled, then recovered a large quantity of marijuana and a box of 9mm ammunition from inside the car. Givens provided the police officer a false name and identification and lied about his criminal history. Later investigation showed Givens had twice been convicted in 2002 in Cook County, Illinois, under two different names, of felony possession of cocaine with intent to deliver.
The evidence also showed that on December 22, 2010, Cedar Rapids police officers executed a search warrant at an apartment where Givens was staying. As officers entered a bedroom, they found Givens with his hand in between the mattress and the headboard of the only bed in the room. During the search of the bedroom, officers found a large quantity of marijuana inside the mattress where Givens had his hand and crack cocaine on the floor where Givens was standing. Givens again provided a different false name to officers when he was arrested. Givens’ identity on all of his convictions and arrests was confirmed through fingerprint analysis.
Givens previously pled guilty to possession of marijuana with intent to deliver in Iowa District Court for the marijuana found on October 7 and December 22, 2010.
During his trial, Givens refused to acknowledge the jurisdiction of the United States District Court, refused to participate in his trial, and refused to be in the courtroom.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Givens remains in custody of the United States Marshal pending sentencing. On the ammunition conviction, Givens faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and 3 years of supervised release following any imprisonment. On the crack cocaine conviction, Givens faces a possible maximum sentence of 30 years’ imprisonment, a $2,000,000 fine, $100 in special assessments, and not more than life on supervised release following any imprisonment.
This case is being prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes. The case is being prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by the Cedar Rapids Police Department, the Bureau of Alcohol, Tobacco, and Firearms and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-55.
Cape Cod Man Indicted for Trafficking in Counterfeit ViagraRead the Press Release
BOSTON – An East Falmouth man was charged today with trafficking Viagra.
David Nailen, 45, was indicted on four counts of trafficking in counterfeit drugs. The indictment alleges that between March and October 2012, Nailen sold counterfeit tablets that were similar or indistinguishable from Pfizer, Inc.’s pharmaceutical drug Viagra via the Internet, on Craigslist, and in person.
If convicted, he faces a statutory maximum of 10 years in prison on count one of trafficking in goods and a statutory maximum of 20 years in prison on counts two through four of trafficking in counterfeit drugs, followed by three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Amy Harman Burkart of Ortiz’s Cybercrime Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Buffalo Gang Members Plead Guilty to Cocain ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Tramell McGee, 30, Kevin Battles, 46, Jerome Brown, 40, Terrell Moore, 33, and Nikita Burt, 29, all of Buffalo, N.Y., pleaded guilty before U. S. Magistrate Judge Leslie G. Foshcio to cocaine trafficking. The pleas were entered in advance of a jury trial that was scheduled to begin today before Chief U.S. District Judge William M. Skretny.
The plea of defendants McGee and Burt carries a maximum penalty of 40 years in prison, while the plea of Battle, Brown and Moore carries a maximum penalty of 20 years in prison.
According to Assistant U.S. Attorney Michael L. McCabe, who is handling the case, the defendants were members of the "Camp Street Boys" which operated on Buffalo's East Side. Defendant McGee was one of the leaders of the gang and obtained kilogram quantities of cocaine. He then redistributed the cocaine to other gang members who resold the cocaine as "crack cocaine" in the vicinity of Jefferson Avenue and Genesee Street in Buffalo.
The defendants were arrested along with five others in Jaune 2011, to date six of the defendants have been convicted.
"As we have said on numerous occasions, our Office is working hand in hand with law enforcement to target gangs and the crimes they commit," said U.S. Attorney Hochul. “Today's guilty pleas send a strong message that this crackdown is having measurable success.”
The pleas are the culmination of an investigation on the part the Federal Bureau of Investigation's Safe Streets Task Force, under the direction of Acting Special Agent in Charge Richard M. Frankel and the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division.
A sentencing date will be scheduled by Judge Skretny.
Brentwood, California Man Sentenced to 8 Years for Possession and Distribution of Child PornographyRead the Press Release
OAKLAND, Calif. – Kyle Robert James was sentenced yesterday to 8 years in prison for possessing and distributing child pornography, United States Attorney Melinda Haag and Acting Assistant Attorney General Mythili Raman of the Criminal Division announced.
James pleaded guilty on December 17, 2012, to both possessing and distributing child pornography. James first came to the attention of the Federal Bureau of Investigation (FBI) on May 13, 2010, when he distributed images and videos of child pornography to an undercover FBI agent using a peer-to-peer computer program. On November 1, 2010, James again distributed images and videos of child pornography to an undercover FBI agent. On May 4, 2011, the FBI searched James’s home pursuant to a federal search warrant and seized computers and external storage media. A forensic examination of the seized items revealed tens of thousands of child pornography files on the computer. The forensic examination also uncovered numerous chats by James with other traders of child pornography.
James, 27 of Brentwood, was indicted by a federal grand jury on January 25, 2012. The sentence was handed down by Chief U.S. District Court Judge Claudia Wilken. In addition to his prison sentence, James was sentenced to a 10-year term of supervised release and will be required to register as a sex offender.
The case was prosecuted by Assistant U.S. Attorney Brian Lewis and Trial Attorney Mi Yung Park of the Department of Justice Child Exploitation and Obscenity Section (CEOS). This prosecution is the result of an investigation by the FBI.
Bethesda Woman Sentenced to Prison for Bankruptcy FraudRead the Press Release
Baltimore, Maryland - U.S. District Judge J. Frederick Motz sentenced Diana J. Stout, age 56, of Bethesda, Maryland, today to 27 months in prison followed by three years of supervised release for making a false statement in bankruptcy, and concealment of assets, in connection with her Chapter 7 Bankruptcy case. Judge Motz also ordered Stout to pay restitution of $155,747.83.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and the Greenbelt Office of the United States Trustee Program, the Department of Justice agency that supervises bankruptcy cases and trustees.
According to Stout’s plea agreement, from April 2010 through June 2011, Stout engaged in a scheme to defraud creditors in her Chapter 7 bankruptcy case, the trustee and the bankruptcy court. Stout filed a Chapter 7 bankruptcy petition on April 20, 2010. The Chapter 7 bankruptcy process is designed to provide a “fresh start” by liquidating all assets of the debtor and distributing the proceeds of the bankruptcy estate to creditors. A Chapter 7 bankruptcy trustee is appointed to gather these assets and generally act on behalf of unsecured creditors.
The filing of the bankruptcy petition prevented Stout’s former boyfriend from proceeding in a civil complaint he had filed against Stout and two of her children claiming that Stout had misappropriated more than $1 million of his assets for her own use or the use of her children, including for the purchase of property in South Carolina. Stout and her daughter had purchased the property, which was titled in both their names, in February 2008, with funds provided by Stout and her boyfriend. In July 2009, after Stout’s relationship with her boyfriend had ended, Stout transferred her interest in the property to her daughter for $1.
In order to conceal her assets, when Stout filed her bankruptcy petition she failed to disclose: that she had transferred the South Carolina property to her daughter; that she owned a diamond bracelet with 75 individually set diamonds in 18kt white gold; that she owned 797 shares of common stock in Eagle Bancorp Inc.; and that she owned a 1993 Toyota Supra and 2005 Chevrolet Avalanche SUV, in addition to the two vehicles listed. Between October 2010 and May 2011, Stout sold the Toyota Supra for $14,000; the stock for a total of $10,125.91; and the diamond bracelet for $85,000, none of which she reported to the bankruptcy trustee.
Stout’s bankruptcy estate included a home in Hagerstown, Maryland. In November 2010, Stout filed an insurance claim seeking reimbursement for necessary repairs to the property, resulting from water damage. She did not notify the Chapter 7 trustee that she was seeking to obtain insurance proceeds relating to property of the bankruptcy estate. After receiving the checks, which were issued jointly to her and the contractors who were to perform the work, Stout forged the signatures of the contractors, converted the proceeds of all three checks to her own use, and did not use any of the money to perform the needed repairs. The bankruptcy trustee was forced to use other assets of the bankruptcy estate to perform the needed repairs.
On February 13, 2011, the bankruptcy trustee initiated proceedings in the bankruptcy court which sought to recover Stout’s interest in the South Carolina property, alleging that the transfer was intended to defraud Stout’s creditors and that Stout did not receive reasonably equivalent value for the transfer. Shortly thereafter, Stout signed and had a revised deed filed which falsely stated that the property had been transferred to her daughter in exchange for $75,000 paid to Stout. Stout then filed an “Answer” to the trustee’s complaint, which she signed on behalf of her daughter, falsely stating that her daughter had paid Stout $75,000 for her interest in the South Carolina property. Stout knew that the statements were false and she admitted that she made them with the intent to defeat the Chapter 7 trustee’s legal action and to defraud her creditors.
Between March 15 and March 30, 2011, Stout also filed numerous false pleadings purporting to withdraw a claim for payment that had been filed by Stout’s creditors, and which bore either typewritten or forged handwritten signatures purporting to be from the named creditor. In fact, the creditor was not aware of the filing and had not signed such a filing. Many of the pleadings also contained a fraudulent certificate of service bearing the typewritten signature of Stout’s bankruptcy attorney, who in fact did not prepare or serve these pleadings, or authorize Stout to sign them on his behalf.
United States Attorney Rod J. Rosenstein praised the FBI and the U.S. Trustee’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorneys Liza Collery of the U.S. Justice Department, Criminal Division, Appellate Section and Ann O’Brien of the U.S. Department of Justice Antitrust Division, who prosecuted the case.
Bellingham Woman Sentenced to 9 Years in Prison for Meth and Heroin DistributionRead the Press Release
A 37-year-old Bellingham woman who was a key player in a Whatcom County drug distribution ring was sentenced today in U.S. District Court in Seattle to nine years in prison and four years of supervised release for Conspiracy to Distribute Controlled Substances, announced U.S. Attorney Jenny A. Durkan. ROSIE CASTANEDA was arrested in December 2011, following a lengthy investigation of a drug trafficking organization that distributed methamphetamine and heroin throughout Whatcom County. CASTANEDA was at once a supplier, a customer and a distributor of drugs for a criminal group headed by co-defendant Todd Hamilton. CASTANEDA pleaded guilty in March 2012. At sentencing U.S. District Judge John C. Coughenour noted CASTANEDA’s extensive criminal history and her “lack of remorse” as indicated on recorded telephone calls she made from the Federal Detention Center.
“This criminal organization prospered by poisoning the communities of Whatcom County,” said U.S. Attorney Jenny A. Durkan. “My thanks to the leaders of local law enforcement in Bellingham and Whatcom County who worked closely with federal law enforcement partners on this prosecution. They truly make a difference for our community.”
According to records filed in the case, CASTANEDA was responsible for distributing both heroin and meth, and had been involved in using and distributing drugs in the Bellingham area for 20 years. CASTANEDA has a lengthy criminal history and was on Department of Corrections supervision for earlier convictions when she was arrested in this case. CASTANEDA used male friends and boyfriends to threaten others and to make sure she got paid for the drugs she sold them.
In asking for a lengthy prison sentence, prosecutors told the court that CASTANEDA was part of “a core group of criminals (which) was singlehandedly running the heroin and methamphetamine trade in Whatcom County. Defendant was one of those criminals whose name constantly resurfaced as a large part of the problem. Her sale of methamphetamine and heroin, while on DOC supervision, to numerous addicts in the Bellingham area only further destroyed the lives of those addicts and their families.”
Hamilton pleaded guilty in April and is scheduled for sentencing July 9, 2013.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved, and was investigated and prosecuted pursuant to the United States Attorney’s Northwest Washington Hot Spot Initiative. The case was investigated by the Drug Enforcement Administration, the Washington State Patrol, Washington State Department of Corrections, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the Northwest Regional Drug Task Force. In addition, the Bellingham Police Department, Whatcom County Sheriff’s Office, and multitude of other local jurisdictions provided support, resources, and officers to assist in this year-long investigation.
The case was prosecuted by Assistant United States Attorneys Jill Otake and Roger Rogoff.
Attorney Convicted in Multimillion-Dollar Stock FraudRead the Press Release
Attorney Mitchell J. Stein, 53, of Hidden Hills, Calif., was convicted by a jury in the Southern District of Florida for his role in operating a five-year, multimillion-dollar market manipulation and fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Stein was charged in a December 2011 indictment and on May 20, 2013, he was convicted on all counts: conspiracy to commit mail and wire fraud and three counts each of mail fraud and wire fraud, each of which carries a maximum penalty of 20 years in prison; three counts of securities fraud, which each carry a maximum penalty of 25 years; three counts of money laundering, which each carry a maximum penalty of 10 years; and one count of conspiracy to obstruct justice, which carries a maximum penalty of five years in prison. Stein is being detained until sentencing, which is scheduled for Aug. 16, 2013.
According to evidence presented at trial, Stein’s wife held a controlling interest in Signalife Inc., a publicly-traded company currently known as Heart Tronics that purportedly sold electronic heart monitoring devices. Stein engaged in a scheme to artificially inflate the price of Signalife stock by creating the false impression of sales activity for Signalife. Specifically, the evidence at trial showed that Stein and his co-conspirators created fake purchase orders and related documents from fictitious customers, then caused Signalife to issue press releases and file documents with the U.S. Securities and Exchange Commission (SEC) trumpeting these fictitious sales. Evidence at trial also proved that in a further effort to create the false appearance of sales activity, Stein arranged to have Signalife products shipped to and temporarily stored with an individual who had not purchased any products.
Evidence at trial further proved that Stein disguised his selling of stock during the conspiracy by placing shares in purportedly blind trusts, and that he had a co-conspirator sell shares of Signalife stock after Stein caused false information to be disseminated to the public. Stein also caused Signalife to issue shares to third parties so that those third parties could sell the shares and remit the proceeds of those sales to Stein. From one co-conspirator alone, Stein received illicit gains of over $1.8 million.
In addition, evidence at trial proved that Stein conspired to obstruct the SEC’s investigation into Heart Tronics by testifying falsely and arranging for others to testify falsely in an effort to conceal the scheme described above.This case was investigated by the U.S. Postal Inspection Service and the Office of the Special Inspector General for the Troubled Asset Relief Program.
This matter was referred to the Department by the SEC, which conducted a parallel investigation and in December 2011 announced the filing of a civil enforcement action against Stein and others. The Department thanks the SEC for its substantial assistance in this matter. The Department also acknowledges the substantial assistance of FINRA’s Criminal Prosecution Assistance Group.
This case is being prosecuted by Assistant Chief Albert B. Stieglitz, Jr. and Trial Attorneys Kevin B. Muhlendorf and Andrew H. Warren of the Criminal Division’s Fraud Section.Attorney Convicted in Multimillion-Dollar Stock FraudRead the Press Release
Attorney Mitchell J. Stein, 53, of Hidden Hills, Calif., was convicted by a jury in the Southern District of Florida for his role in operating a five-year, multimillion-dollar market manipulation and fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Stein was charged in a December 2011 indictment and on May 20, 2013, he was convicted on all counts: conspiracy to commit mail and wire fraud and three counts each of mail fraud and wire fraud, each of which carries a maximum penalty of 20 years in prison; three counts of securities fraud, which each carry a maximum penalty of 25 years; three counts of money laundering, which each carry a maximum penalty of 10 years; and one count of conspiracy to obstruct justice, which carries a maximum penalty of five years in prison. Stein is being detained until sentencing, which is scheduled for Aug. 16, 2013.
According to evidence presented at trial, Stein’s wife held a controlling interest in Signalife Inc., a publicly-traded company currently known as Heart Tronics that purportedly sold electronic heart monitoring devices. Stein engaged in a scheme to artificially inflate the price of Signalife stock by creating the false impression of sales activity for Signalife. Specifically, the evidence at trial showed that Stein and his co-conspirators created fake purchase orders and related documents from fictitious customers, then caused Signalife to issue press releases and file documents with the U.S. Securities and Exchange Commission (SEC) trumpeting these fictitious sales. Evidence at trial also proved that in a further effort to create the false appearance of sales activity, Stein arranged to have Signalife products shipped to and temporarily stored with an individual who had not purchased any products.
Evidence at trial further proved that Stein disguised his selling of stock during the conspiracy by placing shares in purportedly blind trusts, and that he had a co-conspirator sell shares of Signalife stock after Stein caused false information to be disseminated to the public. Stein also caused Signalife to issue shares to third parties so that those third parties could sell the shares and remit the proceeds of those sales to Stein. From one co-conspirator alone, Stein received illicit gains of over $1.8 million.
In addition, evidence at trial proved that Stein conspired to obstruct the SEC’s investigation into Heart Tronics by testifying falsely and arranging for others to testify falsely in an effort to conceal the scheme described above.
This case was investigated by the U.S. Postal Inspection Service and the Office of the Special Inspector General for the Troubled Asset Relief Program.
This matter was referred to the Department by the SEC, which conducted a parallel investigation and in December 2011 announced the filing of a civil enforcement action against Stein and others. The Department thanks the SEC for its substantial assistance in this matter. The Department also acknowledges the substantial assistance of FINRA’s Criminal Prosecution Assistance Group.
This case is being prosecuted by Assistant Chief Albert B. Stieglitz, Jr. and Trial Attorneys Kevin B. Muhlendorf and Andrew H. Warren of the Criminal Division’s Fraud Section.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Alleged Fugitive Sought for Three Years Arrested in Atlantic CityRead the Press Release
CAMDEN, N.J. – A former Atlantic County man who has allegedly been a fugitive since being charged in 2010 with multiple crimes in connection with a large-scale heroin distribution conspiracy was arrested last night in Atlantic City, U.S. Attorney Paul J. Fishman announced.
Edward Brown Jr., a/k/a “Edward Brown,” a/k/a “Eddie Brown,” a/k/a “Eddie Cane,” a/k/a “Cane,” 24, was arrested without incident at 9:30 p.m. last night by Task Force Officers of the FBI, along with members of the Atlantic City Police Department. He will be arraigned before U.S. Magistrate Judge Joel Schneider in Camden federal court later today. Brown was charged by local law enforcement in 2010 in connection with the drug trafficking organization. He was indicted by a federal grand jury in July 2012 and charged with conspiracy to distribute heroin.
According to documents filed in this case and statements made in court:
Beginning in March 2010, FBI special agents and members of the Atlantic County Prosecutor’s Office used wiretaps to intercept telephone conversations among Brown; Jamal Reid, 28, of Mays Landing, N.J., the alleged leader of the organization; and others. The monitored calls and other information revealed that Reid, Brown, and others were distributing large amounts of heroin. During the calls, agents overheard Reid arranging for the delivery of heroin from northern New Jersey to Sicklerville, where it would be accepted by Brown and other conspirators. Agents overheard Reid arrange the collection of money from other members of his organization to pay for the heroin, and they overheard Reid direct the sale and distribution of heroin to others. Agents observed Brown meeting with Reid and his conspirators on numerous occasions.
Reid pleaded guilty May 13, 2013, to a Superseding Indictment charging him with knowingly and intentionally conspiring to distribute one kilogram or more of heroin, and possession of a firearm by a previously convicted felon. He is scheduled to be sentenced Aug. 14, 2013.
Brown was charged by criminal complaint in January 2012. On July 10, 2012, a federal grand jury returned a Superseding Indictment charging Brown with conspiracy to distribute one kilogram or more of heroin. The charge is punishable by a minimum of 10 years in prison and a maximum of life in prison and a $10 million fine.
Ten people were charged for their roles in this heroin distribution conspiracy. To date, six individuals have pleaded guilty to conspiracy to distribute heroin, two remain incarcerated pending trial, and one individual – Matthew Palmer, a/k/a “Matt,” a/k/a “White Boy Matt,” a/k/a “White Boy – remains a fugitive.
U.S. Attorney Fishman credited FBI’s Atlantic City Resident Agency Safe Streets Task Force, which during the Reid investigation consisted of task force officers from the Atlantic County Prosecutor’s Office, the Atlantic City Police Department, the Northfield Police Department, and the Pleasantville Police Department, and special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and special agents from the Bureau of Alcohol, Tobacco, Firearms & Explosives, under the direction of Special Agent in Charge Thomas J. Cannon in Newark.
The government is represented by Assistant U.S. Attorneys Alyson M. Oswald and Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
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Brown, Eddie Superseding Indictment
Akron Man Sentenced to More Than Three Years in Prison, Ordered to Pay $15 Million in Restitution for Mortgage SchemesRead the Press Release
An Akron man was sentenced to more than three years in prison and ordered to pay more than $15 million in restitution for his role in a mortgage fraud scheme in Florida and a separate scheme to defraud two elderly investors, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Andrew D. Norman, 36, previously pleaded guilty to conspiracy to commit bank fraud, conspiracy to commit wire fraud and filing a false tax return.
Norman and his business partner Jason Herceg conspired with Jack Coppenger in procuring “straw buyers” and submitting false loan documents to banks to purchase Coppenger’s lots in Florida (which had already been inflated in value as part of a land flip) in a mortgage fraud scheme. Coppenger, with assistance from Norman and Herceg, perpetrated a large mortgage fraud scheme involving numerous straw buyers, who essentially sold their good credit score to Coppenger, in order for him to secure loans, through straw buyers’ names, for property in Florida, according to court documents.
Coppenger promised money to the straw buyers if they signed the loan application and paperwork, that he would make any down payment and all the mortgage payments for the straw buyers, and that, once the property was developed, they would receive half the profits from any sale, according to court documents.
Norman and Herceg were mentored by Coppenger in how to recruit and use straw buyers. Norman and Herceg assisted Coppenger by using their brokerage company, Akron-based V.P. Equity, to prepare and submit falsified loan documents to the banks, which fraudulently inflated the income and assets of the straw buyers to qualify them for these loans. Ultimately, Coppenger failed to make the mortgage payments on these loans, resulting in a loss to banks of approximately $13.1 million, according to court documents.In the second conspiracy scheme, Norman, Herceg, Coppenger and others, conspired to defraud two elderly individuals by selling them a Florida property for $7 million. Moments before the sale, Norman and Herceg, with Coppenger’s help, bought the property, through their partnership, 104 Investments, from the original seller and inflated its value by approximately $2.5 million. They then sold this property to these elderly individuals, who were told they were buying the property from the original seller. These elderly victims were never told of the last minute “flip” and that they were actually buying the land from Norman, Herceg and 104 Investments. Norman, Herceg, and their 104 Investments business partner, Robert Jason Workman, received approximately $2.5 million from this gain, and funneled portions out to themselves and paid $690,000 to Coppenger as a kickback for setting up the fraudulent scheme, which they fraudulently deducted as a business expenses, according to court documents.
Norman also failed to report the income from this fraudulent scheme on his 2006 tax return.
Coppenger and Herceg have pleaded guilty to related crimes and are awaiting sentencing.
The case is being prosecuted by Assistant U.S. Attorneys Christian H. Stickan, Henry F. DeBaggis and Robert J. Patton following investigation by agents of the Internal Revenue Service – Criminal Investigations and the Federal Bureau of Investigation’s Akron office.
Monday 20 May 2013
Wood Co. Crack Cocaine Dealer Sentenced to Nearly 6 Years in Federal PrisonRead the Press Release
Task Force agents seized loaded and stolen firearms, cash and illegal drugs during investigation
CHARLESTON, W.Va. –A Wood County man was sentenced today to almost six years in federal prison for his role in an illegal crack cocaine distribution conspiracy, announced U.S. Attorney Booth Goodwin. Samuel Shae White, 26, was sentenced to five years and 10 months in federal prison for conspiracy to distribute 28 grams or more of crack cocaine.
White’s two co-defendants, Brandon Mykel Perdew, 21, and Sarah Nichole Miller, 21, both of Parkersburg, were previously sentenced earlier this year to 87 months and 70 months in federal prison, respectively. Both defendants previously pleaded guilty in January to conspiracy to distribute 28 grams or more of crack cocaine.
Perdew and Miller admitted that no later than the summer of 2011 until April 2012, they sold crack cocaine in and around Wood County, W.Va. Perdew and Miller brought crack cocaine from Columbus to Parkersburg and provided it to other sellers, including Samuel White, to distribute in and around Parkersburg. White took part in the conspiracy in January 2012.
On January 20, 2012, the Parkersburg Narcotics and Violent Crimes Task Force used a confidential informant to purchase 1.09 grams of crack cocaine from Perdew. On March 13, 2012, the Task Force used an informant to purchase 1.13 grams of crack cocaine from White. Law enforcement agents also used an informant to buy crack cocaine from Perdew in April 2012. All of the drug transactions took place at 1330 Staunton Avenue in Parkersburg.
As part of the scheme, Miller rented the Staunton Avenue residence and knew that it would be used to store and sell crack cocaine.
Also, on March 8, 2012, Miller drove White to a residence located on Hill Street in Parkersburg where White sold approximately 1.77 grams of crack cocaine to a police informant. On April 18, 2012, officers observed Miller leave her Staunton Avenue residence in a 2003 Volkswagen Passat. Officers executed a search warrant on the vehicle and seized approximately 59.4 grams of crack cocaine, two sets of digital scales, and a .40 caliber semiautomatic pistol that contained a loaded magazine with 12 rounds of ammunition.
Members of the Parkersburg Narcotics and Violent Crimes Task Force executed a search warrant at the 113 Staunton Avenue residence and seized several items including a stolen .22 caliber semiautomatic rifle and a G&P WASR semiautomatic rifle. Agents arrested Perdew and White at the time the search warrant was executed. Officers found a door key to the Staunton Avenue residence and $1,005 cash on Perdew’s person at the time of the arrests.
The sentences were imposed by United States District Judge Thomas E. Johnston.
The investigation was conducted by the Parkersburg Narcotics and Violent Crimes Task Force. Assistant United States Attorney Joshua Hanks handled the prosecution.
Woman Sentenced to Six Years in Theft of Ben Franklin BustRead the Press Release
PHILADELPHIA - Andrea Lawton, 47, of Philadelphia, was sentenced today to 72 months in prison for one count of interstate transportation of stolen property in connection with the August 2012 theft of a rare bust of Benjamin Franklin. The bust, which was damaged during Lawton’s travels, was sculpted during Benjamin Franklin’s lifetime, 224 years ago. Lawton was familiar with the victim’s home because she had worked for a housecleaning company that serviced the house. She exploited that knowledge so that she and an accomplice could steal the homeowner’s valuables, including one of his most prized possessions. Lawton ran off to Alabama where she hid for weeks while trying to solicit a buyer for the bust. She was arrested after a bus trip to Elkton, Maryland, where IRS and FBI agents recovered the bust in her possession.
In addition to the prison term, U.S. District Court Judge C. Darnell Jones, II, ordered three years of supervised release and a $100 special assessment. Restitution will be ordered pending completion of repairs by a conservator to restore the bust.
The case was investigated by the Internal Revenue Service Criminal Investigations, the Federal Bureau of Investigation, the Lower Merion Police Department, and the United States Marshals Service. It is being prosecuted by Assistant United States Attorney Joseph Khan.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Woburn Police Officer Mark Gibbons Honored with Congressional Badge of BraveryRead the Press Release
BOSTON – United States Senators Elizabeth Warren and William M. Cowan, Congressman Edward Markey, United States Attorney Carmen M. Ortiz, and U.S. Marshal John Gibbons recognized Woburn Police Officer Mark Gibbons with the Congressional Badge of Bravery award during a ceremony at the U.S. Federal Courthouse today. Officer Gibbons was honored for his heroic acts following a jewelry store robbery in Woburn on Sept. 6, 2011.
"Throughout this Commonwealth and across the country, the men and women of law enforcement put themselves at risk to serve and protect their communities," said Senator Warren. "Today we thank them all for their service by recognizing one of their very best. Officer Gibbons, for your courage in the face of a serious threat, fortitude in a moment of uncertainty, and action in defense of the public, I am proud we can honor you today with the Congressional Badge of Bravery."
“In the face of danger, Officer Gibbons showed a tremendous amount of bravery and sense of duty. It’s moments like this that we’re reminded how our law enforcement officials put their lives on the line every day to keep our communities safe, and they deserve our gratitude. I want to thank him for his extraordinary service, dedication and commitment to the City of Woburn and the Commonwealth of Massachusetts,” said Senator Cowan.
“Officer Gibbons exemplifies what it means to be a police officer and protector of the public. His incredible bravery helped save lives, and I am proud to join the people of Woburn in honoring this hometown hero,” said Congressman Markey.
“It is only during crisis that we are reminded how very dangerous the job of a police officer can be,” said U.S. Attorney Carmen M. Ortiz. “Local law enforcement is committed to serving the public and keeping our communities safe. The actions of Officer Gibbons on Sept. 6, 2011 exemplify that dedication. On behalf of Attorney General Holder, I thank Officer Gibbons for his brave actions in the line of duty.”
On Sept. 6, 2011, the Woburn Police Department was dispatched to a jewelry store for a take-over style robbery which resulted in injuries to Woburn Police Officer Robert DeNapoli. Following the shooting of Officer DeNapoli, Officer Gibbons responded to the area of the suspect’s last known location. The suspect fired at Officer Gibbons multiple times, putting three rounds into the driver’s side of his cruiser.
Officer Gibbons was able to strike the suspect multiple times and then disengage temporarily. He exited his cruiser and took up a tactical position. More gunfire was exchanged and Officer Gibbons was ultimately able to neutralize the suspect. Officer Gibbons radioed in his position and maintained cover over the wounded suspect, issuing verbal commands, and ultimately taking him into custody. (For the full description, please visit https://badgeofbravery.ncjrs.gov/winners.html .)
To honor law enforcement officers’ acts of bravery, Congress created the Federal Law Enforcement Congressional Badge of Bravery and the State and Local Law Enforcement Congressional Badge of Bravery. A member of Congress may present a Law Enforcement Congressional Badge of Bravery to federal, state, local, and tribal law enforcement officers who are recommended by either the Federal or the State and Local Law Enforcement Congressional Badge of Bravery Board.
To contact Senator Elizabeth Warren’s Office: Lacey Janet Rose, 202-263-9747
To contact Senator William M. Cowan’s Office: Maura Hogan, 202-224-4159
To contact Congressman Edward Markey’s Office: Joseph Wender, 202-225-2836
To contact U.S. Attorney Carmen Ortiz’s Office: Christina DiIorio-Sterling, 617-748-3256